Prashanth PROJECT

ORGANISATION STUDY
INTRODUCTION
Methodology:
Data Collection is a Step in the preparation of project report. The

information is collected in following manner.
Primary sources:
Data is collected by the interacting with bank managers and officers.
Secondary sources:
The data is collected for report by various records maintained and

standing orders of the banks which help as lot for preparing this report. A
lot of data were also collected by referring to magazines and news paper,
annual reports of bank.
Objectives:
 To study the loans and advances of the bank
 To study the evaluation and performance of the bank
 To study the financial statement
 To study the source of finance of the bank
 To study the history of the bank
 To understand functioning of bank
PRASHANTHA SHETTY K, B. B. M. FINAL YEAR REG. NO. 050080049 1

BHANDARKARS’ ARTS & SCIENCE COLLEGE, KUNDAPURA
ORGANISATION STUDY
Limitations
∗ Sample size is limited due to the limited period allotted for the
survey.
∗ Non availabity of adequate and essencial information due to
complex nature of the study.
∗ Inability of the bank personnel to provide adequate information
due to their pre-occupation with their work.
∗ Survey is costly and tedious.

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INDUSTRY PROFILE
BANK
A bank is a business center that deals in financial services. A bank is a

place where your money is safe-locked and a secure place to dispose off
your earnings. Banking service in general includes receiving deposit
money, lending money and processing transactions. The history of
origination of bank goes back a long way. Since then, banks have
influenced the economy of countries. India has a number of both
government undertaken banks as well as private ones.
Meaning of Banking:
A bank is an institution which deals in money and credit. Thus, bank is an
intermediary which handles other people’s money both for their
advantage and to its own profit. But bank is not merely a trader in money
but also an important manufacturer of money. In other words, a bank is a
factory of credit.
Definition of Banking:
According to Section 5(1)(b), “Banking means accepting for the purpose
of lending or investing, of deposits of money from the public, repayable
on demand or otherwise and withdrawable by cheques, draft, and order or
otherwise”.
Definition of Banking Company:

Section 5(1)(c), defines banking company as, “Any company which
transacts the business of banking in India”.

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Features of Banking:
The following are the basic characteristics of Banking:
 Dealing in Money: The banks accept deposits from the public and
advancing them as loans to the needy people. The deposits may be

different types –current, fixed, savings, etc. accounts. The deposits are
accepted on various terms and conditions.
 Deposits must be withdrawable: The deposits made by the public
can be withdrawable by cheques, draft or otherwise, i.e., bank issue

and pay cheques. The deposits are usually withdrawable on demand.
 Dealing with credit: The bank are the institutions that can create
credit i.e., creation of additional money for lending. Thus, “creation of

credit” is the unique feature of banking.
 Commercial in nature: Since all the banking functions are carried on
with the aim of making profit, it is regarded as a commercial

institution.
 Nature of agent: Besides the basic functions of accepting deposits
and lending money as loans, bank possesses the character of an agent

because of its various agency services.

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Banking in India
Banking in India originated in the first decade of 18th century with The
General Bank of India coming into existence in 1786. This was followed
by Bank of Hindustan. Both these banks are now defunct. The oldest
bank in existence in India is the State Bank of India being established as
"The Bank of Bengal" in Calcutta in June 1806. A couple of decades later,
foreign banks like Credit Lyonnais started their Calcutta operations in the
1850s. At that point of time, Calcutta was the most active trading port,
mainly due to the trade of the British Empire, and due to which banking
activity took roots there and prospered. The first fully Indian owned bank
was the Allahabad Bank, which was established in 1865.By the 1900s,
the market expanded with the establishment of banks such as Punjab
National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai
- both of which were founded under private ownership. The Reserve
Bank of India formally took on the responsibility of regulating the Indian
banking sector from 1935. After India's independence in 1947, the
Reserve Bank was nationalized and given broader powers.
The Indian Banking industry, which is governed by the Banking

Regulation Act of India, 1949 can be broadly classified into two major
categories, non-scheduled banks and scheduled banks. Scheduled banks
comprise commercial banks and the co-operative banks. In terms of
ownership, commercial banks can be further grouped into nationalized
banks, the State Bank of India and its group banks, regional rural banks
and private sector banks (the old/ new domestic and foreign). These
banks have over 67,000 branches spread across the country.

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Stages of development of Banks in India
• Early history
• During the wars
• Post independence
• Nationalisation
• Leberalisation
• Current scenario
Early history
At the end of late-18th century, there were hardly any bank in India in the
modern sense of the term. At the time of the American Civil War, a void
was created as the supply of cotton to Lancashire stopped from the
Americas. Some banks were opened at that time which functioned as
entities to finance industry, including speculative trades in cotton. With
large exposure to speculative ventures, most of the banks opened in India
during that period could not survive and failed. The depositors lost money
and lost interest in keeping deposits with banks. Subsequently, banking in
India remained the exclusive domain of Europeans for next several
decades until the beginning of the 20th century.
At the beginning of the 20th century, Indian economy was passing

through a relative period of stability. Around five decades have elapsed
since the India's First war of Independence, and the social, industrial and
other infrastructure have developed. At that time there were very small
banks operated by Indians, and most of them were owned and operated
by particular communities. The banking in India was controlled and
dominated by the presidency banks, namely, the Bank of Bombay, the

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Bank of Bengal, and the Bank of Madras - which later on merged to form
the Imperial Bank of India, and Imperial Bank of India, upon India's
independence, was renamed the State Bank of India. There were also
some exchange banks, as also a number of Indian joint stock banks. All
these banks operated in different segments of the economy. The
presidency banks were like the central banks and discharged most of the
functions of central banks. They were established under charters from the
British East India Company. The exchange banks, mostly owned by the
Europeans, concentrated on financing of foreign trade. Indian joint stock
banks were generally under capitalized and lacked the experience and
maturity to compete with the presidency banks, and the exchange banks.
There was potential for many new banks as the economy was growing.
Lord Curzon had observed then in the context of Indian banking: "In
respect of banking it seems we are behind the times. We are like some old
fashioned sailing ship, divided by solid wooden bulkheads into separate
and cumbersome compartments."
Under these circumstances, many Indians came forward to set up banks,

and many banks were set up at that time, and a number of them set up
around that time continued to survive and prosper even now like Bank of
India and Corporation Bank, Indian Bank, Bank of Baroda Sdyndicate
Bank and Canara Bank.
During the Wars
The period during the First World War (1914-1918) through the end of
the Second World War (1939-1945), and two years thereafter until the
independence of India were challenging for the Indian banking. The years
of the First World War were turbulent, and it took toll of many banks
which simply collapsed despite the Indian economy gaining indirect
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boost due to war-related economic activities. At least 94 banks in India

failed during the years 1913 to 1918 as indicated in the following table:
Years No. of Banks Authorised capital (Rs. Paid up capital (Rs.

that failed In lakh) In lakh)
1913 12 274 35
1914 42 710 109
1915 11 56 5
1916 13 231 4
1917 9 76 25
1918 7 209 1
Post-independence
The partition of India in 1947 had adversely impacted the economies of

Punjab and West Bengal, and banking activities had remained paralyzed
for months. India's independence marked the end of a regime of the
Laissez-faire for the Indian banking. The Government of India initiated
measures to play an active role in the economic life of the nation, and the
Industrial Policy Resolution adopted by the government in 1948
envisaged a mixed economy. This resulted into greater involvement of the
state in different segments of the economy including banking and finance.
The major steps to regulate banking included:
• In 1948, the Reserve Bank of India, India's central banking

authority, was nationalized, and it became an institution owned by
the Government of India.
• In 1949, the Banking Regulation Act was enacted which empowered

the Reserve Bank of India (RBI) "to regulate, control, and inspect
the banks in India."

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• The Banking Regulation Act also provided that no new bank or

branch of an existing bank may be opened without a licence from
the RBI, and no two banks could have common directors.
However, despite these provisions, control and regulations, banks in India

except the State Bank of India, continued to be owned and operated by
private persons. This changed with the nationalization of major banks in
India on 19th July, 1969.
Nationalisation
The nationalization of 14 major banks with deposits of Rs. 50 crores or

more in July 1969 was a “historic” and momentous event in the history of
India. Small industrial and business units are continuously and
consistently ignored and starved of funds, even though the Government
policy was to encourage small, tiny and cottage and village industries.
Agricultural credit was never seriously considered by banks. Public funds
were used to support anti –social and illegal activities against the interest
of the general public. It was for these reasons that the Government took
over 14 top commercial banks in July 1969. In 1980 again the
Government took over another 6 commercial banks –altogether there are
20 nationalized banks. These are in addition to the State Bank of India
and its associate banks –commonly called the State Bank of India Group
–which were taken over in 1955.
Branch Expansion:
Initially, the banks were conservative and opened branches mainly in
metropolitan cities and other major cities. Branch expansion gained

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momentum after the nationalization of major commercial banks and the

introduction of the Lead Bank Scheme. Table No. 01 shows the progress
of branch expansion of commercial banks:
Branch expansion of all commercial banks:
Table No. 01.
As on Total No. of Rural Rural Branches Population per

June 30 Branches Branches as % of the total. bank office
1969 8,260 1,860 22 63,800
1991 60,650 32,750 54 14,150
2003 66,640 32,270 48 15,000
Deposit Mobilization:
Planned economic development, deficit financing and increase in
currency issue have led to increase in bank deposits. At the same time,
banks have contributed greatly to the development of banking habit
among people through sustained publicity, extensive branch banking and
relatively prompt service to the deposit mobilization, due partly to the
expansion of a network of bank branches and partly to the incentives
given to savers. The trend of increase in deposits and credit of scheduled
banks is given in Table No. 02.
Table No. 02.
Year No. of reporting Bank deposits Bank credit

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Banks (Rs. Crores). (Rs. Crores).
1950 -51 430 820 580

1970 -71 73 5,910 4,690
1990 -91 271 1,92,540 1,16,300
2000 -2001 297 9,62,620 5,11,430
2003 -2004 288 15,01,930 8,35,380
Since, 1950 -51 deposit mobilizations and supply of credit by banks were
growing at a rapid rate particularly after bank nationalization in 1969.
Growth of deposits in India of all scheduled commercial banks was as

follows:
1951 -1971 (20 years) -700% or 7 times.
1971 -1991 (20 years) -3,260% or 32.6 times.
1991 -2004 (12 years) -780% or 7.8 times.
Liberalisation
In the early 1990s the then Narasimha Rao government embarked on a

policy of liberalisation and gave licences to a small number of private
banks, which came to be known as New Generation tech-savvy banks,
which included banks such as UTI Bank (the first of such new generation
banks to be set up), ICICI Bank and HDFC Bank. This move, along with
the rapid growth in the economy of India, kickstarted the banking sector
in India, which has seen rapid growth with strong contribution from all
the three sectors of banks, namely, government banks, private banks and
foreign banks.

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The next stage for the Indian banking has been setup with the proposed
relaxation in the norms for Foreign Direct Investment, where all Foreign
Investors in banks may be given voting rights which could exceed the
present cap of 10%,at present it has gone up to 49% with some
restrictions.
The new policy shook the Banking sector in India completely. Bankers,
till this time, were used to the 4-6-4 method (Borrow at 4% Lend at
6%;Go home at 4) of functioning. The new wave ushered in a modern
outlook and tech-savvy methods of working for traditional banks.All this
led to the retail boom in India. People not just demanded more from their
banks but also received more.
Current scenario
Currently (2007), overall, banking in India is considered as fairly mature

in terms of supply, product range and reach-even though reach in rural
India still remains a challenge for the private sector and foreign banks.
Even in terms of quality of assets and capital adequacy, Indian banks are
considered to have clean, strong and transparent balance sheets-as
compared to other banks in comparable economies in its region. The
Reserve Bank of India is an autonomous body, with minimal pressure
from the government. The stated policy of the Bank on the Indian Rupee
is to manage volatility-without any stated exchange rate-and this has
mostly been true.
With the growth in the Indian economy expected to be strong for quite
some time-especially in its services sector, the demand for banking
services-especially retail banking, mortgages and investment services are

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expected to be strong. M&As, takeovers, asset sales and much more

action (as it is unravelling in China) will happen on this front in India.
Currently, India has 88 scheduled commercial banks (SCBs) - 28 public

sector banks (that is with the Government of India holding a stake), 29
private banks (these do not have government stake; they may be publicly
listed and traded on stock exchanges) and 31 foreign banks. They have a
combined network of over 53,000 branches and 17,000 ATMs. According
to a report by ICRA Limited, a rating agency, the public sector banks hold
over 75 percent of total assets of the banking industry, with the private
and foreign banks holding 18.2% and 6.5% respectively.
As far as the present scenario is concerned the banking industry in India

is in a transition phase. The Public Sector Banks (PSBs), which are the
foundation of the Indian Banking system account for more than 78 per
cent of total banking industry assets. Unfortunately they are burdened
with excessive Non Performing assets (NPAs), massive manpower and
lack of modern technology. On the other hand the Private Sector Banks
are witnessing immense progress. They are leaders in Internet banking,
mobile banking, phone banking, ATMs. On the other hand the Public
Sector Banks are still facing the problem of unhappy employees. There
has been a decrease of 20 percent in the employee strength of the private
sector in the wake of the Voluntary Retirement Schemes (VRS). As far as
foreign banks are concerned they are likely to succeed in India.
Indusland Bank was the first private bank to be set up in India. IDBI,
ING Vyasa Bank, SBI Commercial and International Bank Ltd,
Dhanalakshmi Bank Ltd, Karur Vysya Bank Ltd, Bank of Rajasthan Ltd
etc are some Private Sector Banks. Banks from the Public Sector include

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Punjab National bank, Vijaya Bank, UCO Bank, Oriental Bank,

Allahabad Bank, Andhra Bank etc.
ANZ Grindlays Bank, ABN-AMRO Bank, American Express Bank Ltd,

Citibank etc are some foreign banks operating in India
Diagram: Shows the Banking Structure in

India:
Reserve Bank of India

(RBI)
Scheduled Commercial Scheduled Co –operative

Banks Banks
Regional Public Foreign Private Scheduled Scheduled

Rural Sector Banks Sector Urban State
Banks in Banks in India Banks Cooperative Cooperative
India Banks Banks
Nationalized SBI & Old New

Banks Its Private Private
Associates Banks Banks

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Indian Banking Structure:
The banking system in India can be broadly divided into three categories,
viz. the central bank of the country known as the Reserve Bank of India
(RBI), the commercial banks and the co –operative banks. The Reserve
Bank of India is the supreme monetary and banking authority in the
country and has the responsibility to control the banking system in the
country. It keeps the reserves of all scheduled banks and hence is known
as the “Reserve Bank”. Below figure shows the structure of Indian
banking.
Scheduled and Non –Scheduled Banks:

Under the Reserve Bank of India Act, 1934, banks were classified as
scheduled banks and non –scheduled banks. The scheduled banks are
those which are entered in the Second Schedule of RBI Act, 1934. Such
banks are those which have a paid –up capital and reserves of an
aggregate value of not less than Rs. 5 lakhs and which satisfy RBI that
their affairs are carried out in the interests of their depositors. All
commercial banks –Indian and foreign, regional rural banks and State co
–operative banks –are scheduled banks. Non –Scheduled banks are those
which have not been include in the Second Schedule of RBI Act, 1934. At
present, there are only three non –scheduled banks in the country.
Scheduled banks are divided into Commercial Banks and Co –operative
Banks. Commercial banks are based on profit, while co –operative banks
are based on co –operative principle.
Commercial banks have been in existence for many decades. They

mobilize savings in urban areas and make them available to large and

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small industrial and trading units mainly for working capital

requirements. After 1969 commercial banks are broadly classified into
nationalized or public sector banks and private sector banks. The State
Bank of India and its Associates banks along with another 20 banks are
the public sector banks. The private sector banks include a small number
of Indian scheduled banks which have not been nationalized and branches
of foreign banks operating in India –commonly known as foreign
exchange banks.
The Regional Rural Banks (RRB’s) came into existence since the middle
of 1970s with the specific objective of providing credit and deposit
facilities particularly to the small an marginal farmers, agricultural
laborers and artisans and small entrepreneurs. The Regional Rural Banks
have the responsibility to develop agriculture, trade, commerce and
industry in the rural areas. The RRB’s are essentially commercial banks
but their area of operation is limited to a district.

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COMPANY PROFILE
Brief History
Syndicate Bank was established in 1925 in Udupi, the abode of Lord

Krishna in coastal Karnataka with a capital of Rs.8000/- by three
visionaries - Sri Upendra Ananth Pai, a businessman, Sri Vaman Kudva,
an engineer and Dr.T M A Pai, a physician - who shared a strong
commitment to social welfare. Their objective was primarily to extend
financial assistance to the local weavers who were crippled by a crisis in
the handloom industry through mobilising small savings from the
community. The bank collected as low as 2 annas daily at the doorsteps of
the depositors through its Agents under its Pigmy Deposit Scheme started
in 1928. This scheme is the Bank's brand equity today and the Bank
collects around Rs. 2 crore per day under the scheme.
SYNDICATEBANK, HEAD OFFICE, MANIPAL

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The first branch of the bank started its operations in the year 1928 at
Brahmavar in Dakshin Kannada District. By 1937, it had secured its
membership as a clearing house at Mumbai. The primary objective of the
business was to extended financial assistance to local weavers. Initially,
the bank collected as low as two annas from the door steps of the
depositors daily through its agents. This type of system wherein the
agents of the bank come doorsteps to collect deposit is still prevailing in
India and is referred to as the Pigmy Deposit Scheme.
As time progressed, twenty banks merged with the Canara Industrial and
Banking Syndicate Limited including the Maharastra Apex Bank Limited
and Southern India Apex Bank Limited. The name of the bank was
changed to Syndicate Bank Limited in the year 1964 and the head office
of the bank was shifted to Manipal. The bank expanded its operations not
only on the domestic front but also overseas. It took over Al Shabei
Finance and Exchange Co. in Doha (1983) and Musandam Exchange Co.
in Muscat (1984). By 1978, it opened its 1000th branch at Hauz Khas,
Delhi. Currently it has over 2125 branches out of which 1523 are offering
corebanking-e-banking services under anywhere-anytime-anyhow
banking.
Syndicate Bank sponsored the first regional rural bank in India by name
Prathama Grameena Bank. The stocks of the Syndicate Bank are listed on
Bombay Stock Exchange, National Stock Exchange, Mangalore Stock
Exchange and Bangalore Stock Exchange.
The progress of Syndicate Bank has been synonymous with the phase of
progressive banking in India. Spanning over 80 years of pioneering
expertise, the Bank has created for itself a solid customer base
comprising customers of two or three generations. Being firmly rooted in
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rural India and understanding the grassroot realities, the Bank’s

perception had vision of future India. It has been propagating innovations
in Banking and also has been receptive to new ideas, without however
getting uprooted from its distinctive socio-economic and cultural ethos.
Its philosophy of growth by mutual sustenance of both the Bank and the
people has paid rich dividends. The Bank has been operating as a catalyst
of development across the country with particular reference to the
common man at the individual level and in rural/semi urban centers at the
area level.
The Bank is well equipped to meet the challenges of the 21st century in
the areas of information technology, knowledge and competition. A
comprehensive IT plan is being put in place and the skills and knowledge
of the Bank’s personnel are being upgraded through a variety of training
programmes to promote customer delight in every sphere of its activity.
The Bank has launched an ambitious technology plan called Centralised
Banking Solution (CBS) whereby 500 of our strategic branches with their
ATMs are being networked nationwide over a 4 year period.
Nature Of Business Carried:
Syndicate bank being a major public sector banks in India, is well known
for its banking operations that is, it provides various services and
products to the customers by means of ATM, Debit Card, Credit Card,
Internet Banking as the services and Retail Credit Scheme, Personal
Banking Loan Scheme, Deposit Schemes at CBS Branches, and Term
Deposit Schemes as it products. Other than the banking operation it also
provides Foreign Business, Mercantile Banking, Insurance Banking,

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General Banking, and Social Baking to the various customers in India as

well as in abroad.

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PRODUCTS AND SERVICES PROFILE
(A). Retail Credit Scheme:
1. SyndVidhya –Education Loan.

2. SyndLaghuUdyami –Loans for Entrepreneurs.
3. SyndVypar –Loans for Traders.
4. Syndswarna –Loans on Gold.
5. SyndPigmy –Loans for Pigmy Depositors.
6. SyndRent –Loans against Rent receivables.
7. SyndUdyog –Loans for Entrepreneurs.
8. SyndSenior- Personal loan for pensioners
9. SyndVahan –For Purchase of Vehicles.
10.SyndSuvidha –For Purchase of Consumer Durables.
11.SyndKisan –Loan for agriculturist.
12.SyndSaral –Contigency Loans.
a. For Salaried Class.
b. For Non –Salaried Class.
c. All Purpose Credit Schemes.
13.SyndVidyarthi-a stand by overdraft facility for students of
professional courses
(B). Deposit Schemes at CBS Branches:
1. Premium Saving Account (sweep out, sweep in facility).

2. Special Premium Savings Accounts.
3. Syndicate Floating Rate Deposit Scheme.

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(C). Term Deposit Schemes:
1. Fixed Deposit (FD).

2. Social Security Deposit (SSD).
3. Vikas Cash Certificate (VCC).
4. Cumulative Deposit.
5. Syndicate Suvidha Deposit.
6. Quick Money Deposit (QMD).
7. Kisan Pragathi Deposit.
8. Senior Citizen’s Security Deposit.
9. SyndSamanya
Services:
1. Tele –Banking.
2. Internet Banking.
3. “Any Branch Banking”.
4. Multi City Accounts.
5. Synd Bill Pay.
6. Online Collection of Direct Taxes.
7. Online Railway Ticket Booking.
8. Western Union Money Transfer.

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Details of Products and Services
(A). Retail Credit Scheme:

(1). SyndVidhya –Education Loan:
Purpose: Providing financial support to deserving /meritorious students
for pursuing higher education in India and abroad.
Eligibility: All students studying specified courses in India or abroad.
Nature of facility: DL or OSL.
Quantum:
 For studying in India – maximum of Rs.7.5 Lac.
 For studying abroad – maximum of Rs.15 Lac
Security: Up to Rs.4 Lac – guarantee of parent/guardian (third party
guarantee not required).Above Rs.4 Lac- collateral security not less than
100% of loan amount with stipulated margin is required.
Guarantor: Up to Rs.4 Lac-guarantee of parent/guardian-(third party
guarantee not required). Above Rs.4 Lac-guarantee of parent/guardian
and a suitable third party guarantee acceptable to the bank.
Repayment Holiday: Course period plus 1 year or 6 months after getting
job, whichever is earlier?
Repayment period: Maximum of 5-7 years after completion of repayment
holiday.
(2). SyndLaghuUdyami –Loans for Entrepreneurs:

Purpose: To meet the credit requirement of small/medium entrepreneurs,
traders, small business, and self-employers/professionals.
Eligibility: Existing customers who satisfy certain criteria.
Quantum of Loan: Maximum of Rs.5 Lac
Guarantee: Suitable third parties guarantee acceptable to the bank.
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Validity: Three years. Yearly review is to be done by the branch on the

basis of ADV 85. In case of borrower seeks enhancements, and then
regular proposal is to be obtained.
(3). SYNDVYAPAR- LOANS FOR TRADERS:

Purpose: To meet the credit limit of all types of traders.
Eligibility: All traders.
Quantum of loan: Maximum of Rs.25 Lac.
Security: Mortgage of property/pledge of NSC/ KVP/ LIC Policy etc. The
stock in trade also is to be hypothecated.
Guarantee: Third party not compulsory. The owner of the property should
join the transaction as guarantor (If the property is not owned by the
borrower).
Margin: 15% to 40%, depending upon the security.
Repayment: Renewal once in 2 years.
(4) . SYNDSWARNA- LOANS ON GOLD:

Purpose: Jewel loans can be granted for all purposes coming under
priority sectors as well as non –priority sectors.
Eligibility:
 The borrower should be agriculturist if he is seeking loan for
agriculture and allied purposes.
 Jewel loans to all others will be classified as non –priority sectors.
 Jewel loans shall be generally arranged to customers who are properly
introduced to the bank and only through branches having the services
of approved jewel appraisers.
Security: Gold ornaments of 22-carat purity.

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Quantum of loan: Maximum loan available depends on income

generation capacity or the gold value per gram declared from time to
time.
Repayment period: Maximum of 12-24 monthly installments along with
interest.
(5). SYNDPIGMY- LOANS FOR PIGMY DEPOSITORS:

Purpose: Any genuine credit requirements of PD to meet any
contingencies.
Eligibility: Pigmy depositors having PD account, must have completed 2
years with regular contribution. Loans can be sanctioned only at those
branches where pigmy scheme is in operation.
Quantum: 3 times the balance in Pigmy Deposit account or Rs.50000/-,
whichever is less.
Repayment:
 OD renewable on yearly basis.
 DL to be repaid in installment not exceeding 35 EMI’s.
Rate of Interest:
 For loans /OD sanctioned /released up to: 31-03-03; -15% P.a. (fixed).
 For loans /OD sanctioned /released up to: 01-04-03; -14% P.a. (fixed).
(6). SYNDRENT- LOANS AGAINST RENT

RECEIVABLES:
Purpose: Any genuine business /personal credit requirement excluding for
speculative / prohibited purposes as per the credit policy guidelines in
force.

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Eligibility: Bonafide owners of commercial or residential property,

legally let out on lease/rental agreement to reputed
institutions/companies.
Quantum: Maximum of 75% of rent receivable (less TDS) by owner for
whole or part lease period not exceeding 60 months.
(7). SYNDUDYOG- LOANS FOR ENTREPRENEURS:

Purpose: Scheme for financing small and medium entrepreneurs.
Target Group: Manufacturing units, trading units, Service entities.
Eligibility:
 Credit requirement of the applicant party/unit shall not be more than
Rs.50 Lac.
 The annual sales/revenue turnover of the applicant party/unit shall not
be more than Rs.250 Lac.
Nature of facility: Overdraft/loans, Bill limits, LCs / BGs offered in one
package at competitive rates within a predetermined overall limit (not
exceeding Rs.50 Lac).
(B). Personal Banking Loan Scheme:
(1). SYNDVAHAN- VEHICLE LOANS

Purpose: Loan to purchase new/old 4-wheeler and new 2-wheeler by
individuals.
Eligibility: Individuals having minimum annual income of Rs.50,000/-
for 2-wheeler, Rs.1,00,000/-p.a. for 4-wheeler.

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(2). SYNDSUVIDHA- CONSUMER DURABLE LOANS:

Purpose: To purchase consumer durables like TV, Fridge, washing
machine, other audio /video equipment computer including printer etc.
Eligibility: Salaried / non-salaried class.
Repayment: Not more than 60 equated monthly installments.
Rate of Interest: (compounded monthly).
Guarantee: Suitable third party.
(3). SYNDKISAN- LOANS FOR AGRICULTURISTS:

Purpose: To meet any genuine credit requirements / to purchase consumer
durables.
Eligibility: Agriculturists clean loans may be sanctioned to existing
customers only who have availed some facility with the bank and have
mortgaged the property.
Quantum:
Demand loan: 50% of average gross annual income or Rs. 1 lacs,

whichever is less, where proof of income from revenue authority is
submitted. When proof is not available the manager must make the
party’s assessment of income. In such event, quantum of loan is restricted
to 50% of the gross annual income or Rs. 0.25 lacs, whichever is less.
Repayment: Not exceeding 3 years.

Guarantor: Suitable third parties guarantee acceptable to the bank.
(4). SYNDSARAL-CONTINGENCY LOANS:

(a). Salaried Class:
Purpose: To meet any genuine personal credit requirements.
Nature of Facility: Demand loan and ODC (for top executives only).

ORGANISATION STUDY
Eligibility: Permanent employees of central / state governments

/departments /reputed public sector undertakings / companies /firms
having sound financial / teachers, professors, staff of schools and colleges
and pensioners.
Quantum: 12 months’ gross salary, subject to maximum of Rs.3 lacs
where salary is not credited at the branch.
Repayment: Not exceeding 60 EMIs.
Rate of Interest: (compounded monthly).
Loans –PLR / PTLR + 2.5% P.a. and ODC for top executives –PLR +3%
P.A.
Guarantor: Suitable third parties guarantee acceptable to the bank.
(b).Non salaried class:
Purpose: To meet any genuine personal credit requirements.
Eligibility: Non –salaried persons such as Doctors, Engineers,
Architecture, Lawyers, Consultants, Businessmen etc.
Quantum: Subject to maximum of Rs. 5 lacks.
(c). All Purpose:
Purpose: To meet any genuine credit requirements.
HOUSING LOAN
The banks has under restriction that they have to lend 40% 0f the
advances to priority sector advances consisting of : small route transport
operation, small scale industries professionals or self employed, small
business, retail trade, agriculture and export.
Housing loan has become cheaper as compared to earlier years. This is
because of stiff competition between the banks
The banks are required to lend at their prime lending rate but they don’t
lend at this rate, this is because the RBI has given some liberty to the
nationalized banks in fixing their own interest rate. The PLR is based
ORGANISATION STUDY
upon the low cost deposits the bank have, they can grant loan at lesser
interest.
In India the default in housing loan is very meger, and people in India are
also sentimentally attached to the house which they own/construct by
them and repayment are generally regular.
Banks have taken more interest to finance housing loans because:-
1. it is secured advance with sufficient margin
2. the advance up to 10 lack is treated as priority sector advances
3. the risk weight age s only 50%
Moreover the interest up to 1.50 lack is considered as for tax exemption.
The have also tie up arrangement with the developer for the construction
of an apartment is treated as one account.
Following is the common feature of most of all housing loan scheme
of different nationalized banks like Syndicate bank(SYNDNIVAS),
Vijaya bank(VIJAYA HOME LOAN)
• Purpose:
-Construction/purchase of existing/new house/flat/purchase of site
for house construction.
-For repairs/renovation/modification in existing house.
• Eligibility: All salaried / self-employed / business persons /

agriculturists / Pensioners with regular income.
• Quantum of loan: The quantum of loan is fixed on the basis of

total project cost less prescribed margin (25% or 30%) or 72
months gross salary in case of salaried class of borrowers

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• Rate of Interest: The borrower will have a choice of either fixed

interest rate or Floating interest rate. Floating interest rate will be
linked to PLR, i.e. as & when PLR is revised, interest rate will also
stand revised.
• Repayment: Flexible repayment period options are available.

Equated monthly installments for repayments are devised to enable
the borrowers to structure and planned the repayment of the loans.
• Security: Mortgage of the property to be financed
Defferences between housing loans given by the

Syndicate bank(SyndNivas) and Vijaya bank (Vijaya
Home loan)
Point of
SynndNivas Vijaya Home Loan
differences
Purpose For acquiring a new house or For purchase of old house
existing house not more than /flat of age of 30 years and
25 years old below.
Eligibility For salaried class, applicant In case of salary income

should have completed 5 alone is considered for
years of service and the deciding the quantum of
remaining period of service loan, such salaried persons
left shall not be less than should be in permanent
5years service and not probationers:
Persons nearing
superannuation getting
retirement benefits sufficient
to cover the Loan applied can
also be considered.

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Quantum For Salaried persons : Minimum loan amount is Rs. 1.00

Maximum of 72 months lakh Maximum – Any amount -
on need based as per the cost less
gross salary (including salary
stipulated margin subject to loan
of spouse) entitlement.
For salaried class, applicant In case of Repairs/Renovation -
should have completed 5 maximum is Rs. 10Lakhs
years of service and the
remaining period of service
left shall not be less than 5
years.
Margin 25% of total project cost for 20% of the cost in general.
construction/purchase of new The cost shall include Land
flat or house up to 5 years cost, Stamp duty,
old. Registration charges,
30% for acquiring house Fixtures like Ward Robes,
which is above 5 years old. Pelmets, Dressing Mirror,
Kitchen cabinets / racks,
30% of the estimated cost of Geysers etc.
addition/extension/repairs/re
novation
Processing Rs.500/- per lac with a Up toRs.2 lakhs Rs. 112/

charges minimum of Rs.1000/- at Above Rs. 2 lakhs to Rs. 1
present. (Processing charges Crore Rs. 112./- per lakhs
are subject to change from or part thereof
time to time)
Above Rs1Crore Rs 11,224
for Rs. 1 Crore plus Rs. 140/-
per Rs. 1 Lakhs or part
thereof

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Rate of interest
Synd-Nivas
Repayment Period Fixed rates (%) Floating rates (%)

Up to 5 years 11.50 BPLR-3.0
Over 5 years & upto 10 years 12.00 BPLR-2.50
Over 10 years & upto 20 years Category BPLR-2.25
abolished
Over 20 years & upto 25 years Category BPLR-2.00
abolished
Vijaya Home loan

Existing and for loans Revised and for loans
Period up to Rs.20.00 Lakhs above Rs.20.00 Lakhs
Floating Fixed Floating Fixed
Up to 5 years 9.25% 9.50% 10.00% 10.75%
Above 5 years to 9.75% 10.00% 10.50% 11.25%
10 years
Above 10 to 15 10.00% No fixed 10.75% No fixed
years
Beyond 15 years 10.50% No fixed 11.25% No fixed
Findings
• As Housing loans comes under Priority sector lending, the feature of
housing loan given by different nationalized banks are similar.
• These banks charging interest to their Housing loan products even
less then their Prime Lending Rate
• When we compare the housing loans of two nationalised banks i.e.
Syndicate bank and Vijaya bank we find lot of similarities in
Purpose of lending, Eligibility, Quantum of loan, Security, Rate of
interest, and Repayment is concerned.
• As for as difference is concerned The difference between these two
policy is minor, like in case of renovation of house syndicate bank
give loan only for the period 25 years where as Vijaya bank it is 30
years
• In case of eligibility of housing loan for salaried class of customer
should complete at least 5 years of service But such restriction is not
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there in case of vijaya bankIn simple Housing loans of Vijaya liberal

as compared to Syndicate bank
C). Deposit Schemes at CBS Branches:
(1). Premium Savings Account (Sweep in, Sweep out facility):
Features:
 All persons associations etc., who are eligible to open SB accounts can
open accounts under this scheme.
 Average monthly balance of Rs. 10,000/- to be maintained in the
premium saving account.
 Balance available in the account in excess of Rs. 10,000/- on any day
gets automatically swept out into a fixed deposit for 180 days in units
of Rs. 1000/-
 No penalty is charged for breaking the fixed deposit prematurely.
However, the amount swept in earns interest for the period run at the
application rate.
(2). Special Premium Savings Accounts:
Features:
 All persons associations etc., who are eligible to open SB accounts can
open accounts under this scheme.
 Rs. 20,000/- maintained in “Special Premium Savings Account”.

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 The balance available in the account in excess of Rs. 20,000/- on any

day will be swept out into a fixed deposit in units of Rs. 1000/- for one
year and one day.
 The interest rate applicable for the amount so swept in will be the rate
applicable for the period for which it was held in the term deposit
account.
 No penalty is charged for breading the FD prematurely.
 Rs. 100/- per month is levied as service charges whenever the monthly
average balance in the special saving account goes below Rs. 20,000/-.
(3). Syndicate Floating Rate Deposit Scheme:
The scheme has been launched from 01 -01-2003 and the deposits are
accepted at Syndicate e-banking branches.
Features:
(a). Amount of deposit: Minimum deposit acceptable under this scheme is
fixed at Rs. 100/- lacs and in multiples of Rs. 1/- lac.
(b). Period of deposit: one year.

ORGANISATION STUDY
D). Term Deposit Scheme:

(1). Fixed Deposit (FD):
Amount of deposit: Opened with minimum of Rs. 50/- and above. FD can
be opened with minimum of Rs. 1000/-.
Period of deposit:
Minimum period of 15 days and maximum of 120 months.
Branches are permitted to accept bulk deposits of Rs. 25 lacs and above
up to Rs. 100 lacs for a period of 7 -14 days.
FD’s can also be accepted for any period in multiples of complete months
or for incomplete months like 13 months and 12 days etc.
Where a court directs the bank to do so, the branch may accept the
deposits for any period beyond 120 months and also for any amount even
if it is less than Rs. 50/-.
Options regarding payment of interest:
 In case of FD for 6 months and below, the interest is payable on
maturity.
 In other cases, the depositors is having the option of claiming interest
on quarterly or half yearly rests.
 Monthly interest can be availed at discounted rates.
Other features:
 Nomination facility is available.
 Premature closure is permitted to subject to penalty norms.
(2). Social Security Deposit (SSD):
Amount of deposit: A SSD account may be opened with a minimum of

Rs. 1000/- and in multiples of Rs. 100/-
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Period of deposit: SSD can be opened for a minimum period of one year.
SSD’s are opened only in completed quarters subject to a maximum of
ten years.
Payment of Interest: The depositor is free to opt, any one of the following
regarding the payment of interest.
 Monthly Interest: Interest is paid at the end of every calendar month at
discounted value.
 Quarterly Interest: Simple interest accruing at the end of each quarter
will be paid.
Calculation of Interest:
Monthly Interest at Discount rate = Amount of deposit X Rate of
interest
(1200 + Rate of interest)
Ex: At 12% for Rs. 10,000/- discounted monthly interest is: (10,000 X
12) / 1212 =99.01.
Branches refer Master Charts on interest rates for payment of interest at
discounted rates.
(3). Vikas Cash Certificate:
The amount accepted under this scheme grows constantly with interest
compounded on quarterly basis and the accrued interest will be paid
along with the principal amount of the deposit on maturity.
Amount of deposit: Amount in multiples of Rs. 100/- is accepted.
Period of deposit: Deposit will be accepted for a minimum period of 6
months and in completed quarter beyond 6 months subject to maximum
of 120 month. Deposits can also be accepted for odd periods like one year
one day, two year one day etc.

ORGANISATION STUDY
Payment of Interest: Interest on the amount of deposit is compounded at

quarterly rests and paid along with principal on maturity. The maturity
value for different periods are given in the tables supplied in this regard.
Deduction of Tax at source on cash certificate: Branches shall affix a seal
on the cash certificate mentioning “Maturity value is subject to provision
of tax laws”. There is no breach of contract here, as it is the land which
has altered the contractual terms.
4). Cumulative Deposit:
In this scheme, deposits into the account are made in monthly

installments for a stipulated period on expiry of this period; the total
amount of installments deposited is rapid with interest compounded on
quarterly basis.
Amount of deposit: Uniform monthly installments of Rs. 10/- or in
multiples thereof. However, with effect from 01 -04 -03 the minimum
monthly installments stands revised to Rs. 100/- and thereafter in
multiples of Rs. 10/-.
Period of deposit: Minimum period of 12 months and maximum of 120
months in completed quarters.
(5). Syndicate Suvidha Deposit:
A special deposit scheme, under which, the depositor can withdraw a part
of the fixed amount at times of need.
Amount of deposit: Rs. 10,000/- and above in multiples of Rs. 1000/-.
Period of deposit: Minimum of 15 days and maximum of 120 months.

ORGANISATION STUDY
Rate of Interest: As applicable to the term deposits at the time of opening

the deposit account.
Interest payment: Simple interest is payable at quarterly intervals at the
contracted rate. For all the accounts opened prior to 27 -01 -1998, interest
is payable at half yearly intervals.
Partial Withdrawal:
 The depositor is at liberty to withdraw partially in multiples of Rs.
1000/-.
 There is no restriction regarding frequency and number of
withdrawals.
 Withdrawals are recorded in the deposit ledger and also on the deposit
receipt.
 No penalty is charged on partial withdrawals (w.e.f. 01 -11 -1998).
 TDS norms are applicable.
(6). Quick Money Deposit:
This is a term deposit scheme with overdraft facility which ensures

availability of funds to the account holder without necessitating another
visit to the branch.
Amount of deposit: Rs. 25,000/- and above in multiples of Rs. 1000/-.
Period of deposit: Minimum of one year and maximum of five years
deposits can be accepted for incomplete quarters also.
Interest Rate: As applicable for term deposits, compounded quarterly. For
incompleted quarters, interest shall be calculated on the basis of 365 days
a year.

ORGANISATION STUDY
(7). Kisan Pragathi Deposit:
Kisan Pragathi Deposit is a credit linked savings cum term deposit

scheme designed for agricultural clientele. These deposits can be opened
by any agriculturist solely or jointly with his wards.
Interest:
 Rate of interest shall be 1% less than domestic term deposit rates.
 Interest is calculated on monthly product basis.
Other Terms:
 Nomination facility is available and credit facility.
(8). Senior Citizen’s Security Deposit:
This deposit scheme with value added features was introduced by the
bank for the benefits of senior citizen’s who are of above the age of 60
years including retired employees of the bank, valid proof of age to be
produced by the depositor.
Amount of Interest: Minimum of 1,000/- and in multiples of Rs. 1000/-.
Period of deposit: Minimum of 12 months and maximum of 120 months.
Rate of Interest: Higher rate of 0.50% over the normal rates applicable to
domestic term deposits. Interest is payable monthly (at discounted rate) or
quarterly as desired by the depositors.
Loans on deposits: Available up to 75% of the deposit amount.
Other Features:
ORGANISATION STUDY
Services:
(1). Tele –Banking: Round the clock access regarding account details,
balance enquiries, transfer of funds can be made from one account to
another and utility bills like electricity, telephone, etc., can also be paid.
(2). Internet Banking: The bank is accessible from your home, office or
while you are traveling. A login password and transaction password has
to be obtained, with these passwords you can login and (a). View account
transactions. (b). Effect transfer of funds. (c). Open a Term Deposit. (d).
Place requests for issue of Cheque books, demand drafts, etc.
(3). Any Branch Banking: Banking is no longer restricted to the

physical boundaries of your Branch premises. You can (a). Get cash
payment of your Cheque up to a limit in any other CBS Branches. (b).
Get collection of your cheques. (c). Purchase DDs, MTs, etc. or get online
transfer of funds.
(4). Multi City Accounts: These are accounts which can be operated in
various CBS centers. You can opt for one of the five variant of the
accounts depending on the minimum average balance.
(a). Synd –Silver –Current Accounts.
(b). Synd –Gold –Current Accounts.
(c). Synd –Platinum –Current Accounts.
(d). Multi –City –Corporate with sweep –in and sweep –out facility from
OD account to current account.

ORGANISATION STUDY
These Multi –City Cheques can be debited at any of our CBS network
branches. Other transactions like purchasing DDs, fund transfer, etc.
could be done for reasonable charges.
(5). Synd Bill Pay: A hassle free utility payment product wherein utility
bills can be paid directly by the bank. The modes of payment by
registering with the Bank –all for no charges.
(a). Autopay –where the Bank pays the bill on due date.
(b). Online pay –where you can view the bills that are due and authorize
payment online.
(6). Online Collection of Direct Taxes: Our Bank collects Central Board
Direct Taxes from the customer at the selected branches identified for this
purpose.
(7). Online Railway Ticket Booking: The bank has joined hands with
Indian Railway Catering & Tourism Corporation Ltd. (IRCTC) to offer
online booking of railway tickets for all Internet –banking (Syndinet)
Customers of their bank. This facility is offered to the customers
absolutely free of cost.
(8). Western Union Money Transfer: The bank has signed MoU with
M/s Kuoni Travel (India) Pvt. Ltd. Agent for M/s Western Union Network
(Ireland) Ltd to make payments of Western Union Money Transfer
remitted by NRIs from foreign countries.

ORGANISATION STUDY
Area of Operation –Global / National / Regional:

Syndicate bank is a major public sector bank –serves over 19millon
Clinteles through 2125 branches spread over 20 states and four union
territories with a branch at London and a workforce of 28000.
The global business of the bank exceeds 131473 crores. It is known for
mass banking through its innovative schemes ranging in scope from small
savings and social lending to corporate finance and foreign business.
Particulars Rs. In crores Growth in %
Global business 131473 44.03
Global Deposits 78634 46.64
Global Advance 52839 40.31
Net Profit 716 33.47
Net Interest Income 2150 14.31
Branches 2125
CBS Branches 1508
ATM’s 701
Clientele 19 million
Networth Rs 3623 crores

ORGANISATION STUDY
Ownership Pattern:
Syndicate Bank is a Govt. of India undertaking. This has more than
66% of share capital
Sl. Category No. of Shares % of share
No. held holding.
A Promoter’s Holding
1 Promoters
Government of India 346968282 66.47
Foreign Promoters NIL
2 Persons acting in concert NIL
Sub Total 3469568282 66.47
B Non –Promoter Holding
3 Institutional Investor
(a). Mutual Funds and UTI 13400770 2.57
(b). Banks, Financial Institutions, Insurance
Companies (Central / State Govt. 18350002 3.52
Institutions / Non –government
Institutions).
(c). FII’s. 63894695 12.24
Sub Total 95645467 18.33
4 Others
(a). Private Corporate Bodies 5952793 1.14
(b). Indian Public 71425784 13.68
(c). NRIs / OCBs 1136130 0.22
(d). Any Others 839826 0.16
Sub Total 79354533 15.20
Grand 521968282 100.00

Total
Competitors Information:
For any industries there are number of competitors who themselves try to
emerge with innovative products and services, to compete with other
industries. They provide products and services in order to satisfy the
customers, which are economy to their purchasing habits. Likewise
ORGANISATION STUDY
Syndicate Bank is also having its competitors like all Public Sectors
Banks in India, and Private Sectors Banks, Foreign Banks etc. The main
competitors of Syndicate Bank are SBI and its Associates, Punjab
National Bank, Canara Bank, Corporation Bank, Unit Trust of India
(UTI), Indian Overseas Bank etc. Private sector banks like ICICI, IDBI,
Centurian bank also give competition.
Infrastructural Facilities:
Syndicate bank has following infrastructure facilities
1. CBS Branches
2. ATM’s
3. Total Branch Mechanization(TBM’s)
4. Video Conferencing in HO, RO, CO,
5. Internet facility
6. Data warehousing and mining
7. Real Time Gross Settlement(RTGS) in CBS branches
8. Foreign exchange business
9. Treasury and Investment
10.Credit and Debit card
11.Security arrangement
12.Close circuit TV and Time clock facility
13.communication facility with cash van during cash remittance
14.Installation of Hotline with currency chest
15.Strong and safe room for currency chest
16.Burglar alarm system in all branch
17.Automatic fire alarm system in all CBS branches
18.Fire proof cabinet in all CBS branches
Note counting machine 746

ORGANISATION STUDY
Note sorting machine 45

Note banding machine 300
Desktop ultraviolet 2070
lamp
Hand ultraviolet lamp 750
Achievement / Awards won by the Bank over the years:

1972 –INDIAN MERCHANTS CHAMBER Award for outstanding
contribution towards welfare of community.
1974 –INDIAN MERCHANTS CHAMBER Award for outstanding

contribution in promotion of savings.
1975 –CERTIFICATE OF MERIT for Bank's house journal "GIANT".
1976 –INTERNATIONAL AWARD by JAYCEE international for

outstanding contribution to the cause of the JAYCEE movement.
1977 –ASSOCHAM AWARD for promotion of rural and agricultural

activities of Syndicate Agriculture Foundation sponsored by the bank.
1978 –INDIAN MERCHANTS CHAMBER AWARD for outstanding

contribution towards welfare of the community.
1981 –NATIONAL INVESTMENT AND FINANCE AWARD for

Priority Sector lending.
1990 –CHAUDHARI CHARAN SINGH MEMORIAL NATIONAL
AWARD for Rural Development.

ORGANISATION STUDY
1999 –FICCI AWARD for institutional initiative in the field of "Rural

Development" to RUDSETI jointly sponsored by Syndicate Bank.
2001 –Banking Technology Award for innovative use of Banking

Applications on INFINET awarded by IDRBT, Hyderabad.
2003 –Banking Technology Award awarded by IDRBT, Hyderabad for

the year 2003.
2006- Institute for Development and Research in Banking Technology

(IDRBT), established by Reserve Bank of India has conferred Syndicate
Bank, “Special Award for Use of IT for Customer Service in Semi-Urban
and Rural Areas”. The award was given to Shri C P Swarnkar, Chairman
& Managing Director, Syndicate Bank by Dr Y.V. Reddy, Hon’ble
Governor, Reserve Bank of India on Sept. 02, 2006 at Hyderabad.

ORGANISATION STUDY
WORK FLOW MODEL

ADVANCES
Interview with manager
Know your customer
Evaluation of project
Sanction of loan
Documentation
Transfer to his S/B

accounts
Repayment of interest
Diagram No.1
This is the work flow model followed by the bank at the time of giving
advances to their customers. Which involves the following series of steps,
they are:
Interview with the manager:

Any party requiring funds through bank first has to talk with the
respective manager of a branch of his area. One thing the manager has to
see that the amount of loan he has to sanction is in his power/ limit or else
he has to concern his higher authority. In this stage the process of

ORGANISATION STUDY
negotiation regarding rate of interest between party and banker takes

place.
Know your customer:

The important duty of a manager is to know his customer there are many
systematical techniques and process to know the real identification of the
customers. This is done mainly to avoid anti-laundering.
Evaluation of project
The purpose of loan to be sanctioned should be clearly understood either
by evaluating blue print of his project or balance sheet or performance
proof of his existing business. This is mainly done to make sure that
repayment of the amount is ensured and party won’t become bankrupt. In
case of personal loan evaluation of the person is done through other
person who is known to the banker.
Sanctioning
Sanctioning is not actual giving of loan that is the amount to be paid is
promised .the party in need of it is capable of withdrawing the amount
not more then the amount sanctioned to him.
Documentation:
The documentation deals with filling of forms that are in contractual form
and most of the documentation process could be seen in all the stage. It
also deals with submission of security for their loan and its formalities.
Transfer to his account:

The party which is borrowing loan from bank need to have an account in
that bank, if not the banker will create an account for this purpose. And
ORGANISATION STUDY
most of time the loan amount is transferred to his account and rarely they
give it in their hand, either in their hand, either in the form of DD,
Cheque or cash it depends upon the banker and the party .
Repayment:
After the purpose of the loan is served, the party is obliged to repay the
amount incorporating PLR and other bank charges or according to the
agreement
DEPOSITS
Customer approaching the
bank/ Enquiry
Introduction
Documentation
Diagram No. 2
Saving, Fixed, current &

Recurring A/C
A/C Holder facilities
Deposits Withdrawal
Cashier Cashier
Cash supervisor Cash supervisor
Account of the customer Account of the customer

ORGANISATION STUDY
This is the work flow adopted by the bank at the time of receiving the
deposits from their customers.
The first step in this process is customer approaching the bank. When the
customers will have surplus money with them, they will be looking to
invest that money in some place where they can get good returns out of it.
Bank is one such place which accepts deposits from their customers and
pays interest on them. So the customers will be looking for that bank
which will pay them highest rate of interest on their deposits. Once the
customer identifies the bank where he is going to deposit his amount, he
has to go through the introduction stage, were the customer needs to be
introduced to the bank. He may be introduced to the bank by the
customer or an employee of this bank. He is asked for providing
documents like Ration card or any license for address, age & income
proof. Once the account is opened (i.e. Either S.B a/c, fixed deposits,
recurring deposits or current a/c) he/she will provide with facilities like
Cheque book, ATM or O.D if it’s a current a/c. Once the customer opens
an account in the bank he can deposit any amount any number of times
but in case of fixed deposit its one lump some amount deposited till its
maturity it is not withdrawn. When amount is deposited it goes to the
hands of cashier and then to cash supervisor and then to his account, but
now due to CBS in a minute we give to cashier its transferred to
customers a/c. The depositors are eligible to withdraw the amount which
is credited in their account and not more than that unless it is current
account. Depositors can withdraw as an when they need but in case of
fixed deposits prior 7 days notice to be given but today’s banker will not
ask for any notice just give it in the spot with penalty. The process of
withdrawal is reverse of depositing where from his account it goes to
cash supervisor from him to cashier finally to the hands of customer,
again traditional work flow. Now all are computerized where in one
ORGANISATION STUDY
person does all the activity. Customer can directly withdraw in ATMs or
can directly issue Cheques to the other party.
Future Growth and Prospectus:

 Banks domestic credit expansion during the fiscal at 32.47% was far
better than the industry average. We would like to repeat the
performance under credit font in the current financial year.
 Bank has done extremely well in expanding its agricultural credit
base. The y-o-y increase was 51.89%. We would give some
importance to increasing Agriculture portfolio of the bank in the
current year.
 Similarly the bank is putting its strategy in place to increase its
portfolio under SME’s, Mid corporate, SSIs, Retail business and
consumer credit.
 Under resource mobilization point their focus is to shed high cost bulk
deposits and to rely more on low cost deposits. Interest area being
strengthening SB component of the deposits.
 Bank also has an ambitious plan to reduce its low yielding excess SLR
portfolio and to invest it in quality high yielding advances.
 Bank has evolved many strategies to improve its bottom line in the
current fiscal.
 Bank has received permission from RBI to set up rural development
venture capital funds to asset Agriculture Business, Processed Foods,
Biotech, Information technology and non-conventional energy in rural
areas.
 Bank is also planning to enter BPO business to utilize excess man
hours and expertise available in the bank. Reserve bank’s permission
is awaited for this venture.

ORGANISATION STUDY
MCKINSEY’S 7S FRAMEWORK
Introduction:
The Seven –S model was developed by McKinsey’s is an important part
of the organization. The two persons who developed this model were Tom
Peters and Robert Waterman, who were consultants at the McKinsey’s.
They had published their 7S models in their respective articles named,
“The Art of Japanese Management (1981)” and “In Search of Excellence
(1982)”.
McKinsey’s & Co’s 7S framework provides a useful framework for
analyzing the strategic attributes of an organization. The model starts on
the premises that each and every organization is not just a structure as it
consists of seven important elements. Strategy, Structure and Systems can
be considered as “Hardware” of success while Style, Staff, Skills and
Shared Values are considered as the “Software”. Companies, in which
these soft elements are present, are usually more successful at the
implantation of the strategy. The McKensy’s framework is shown in the
figure.
Soft Ss:
The four Ss across the button of the model are less tangible, more cultural
in nature and were termed as Soft Ss by McKinsey.
1). Skills: The capabilities and competencies that exist within the
company are termed as skills.
2). Shared Values: The values and beliefs of the company. Ultimately
they guide employees towards “Valued Behavior”.
3). Staff: The company’s people resources and how they are developed,
trained and motivated.

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4). Style: The leadership approach of top management and the

company’s overall operating approach.
Hard Ss:
The three Ss across the top of the model are described as “Hard Ss”. The
3Ss across the top of the model are described as “Hard Ss”.
5). Strategy: The direction and scope of the company over the long term
is known as strategy.
6). Structure: The basic organization of the company, its departments
reporting lines, areas of expertise and responsibility (and how they inter –
relate).
7). Systems: These are formal and informal procedures that govern
everyday activity, covering everything from management information
systems, through the systems at the point of contact with the customer
(retail systems, call center systems, online systems, etc.).
Diagram Showing pictorial diagram of McKinsey’s
7’S Model;

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7S Model of Syndicate Bank

(1). Structure:
The bank has a well organized three tier structure with a sound
foundation of 2113 business outlets and a well defined reporting
architecture as the body to support. The corporate governance which is
the breath sustaining the momentum is through a very talented board of
directors including government appointed directors employee and office
representative directors guided by RBI, Ministry of Finance, Government
of India which forms the superstructure. Below figure shows the details
structure of the Syndicate Bank.
ORGANISATIONAL STRUCTURE
BOARD OF DIRECTORS
CHAIRMAN & MANAGING DIRECTOR
EXECUTIVE DIRECTOR

ORGANISATION STUDY
GENERAL MANAGERS Portfolios

1. Corporate Credit Division – I (CCD-I) 9. Priority Sector Credit Dept
2. Corporate Credit Division – II (CCD-II) 10. Premises & Maintenance Dept
3. Retail Banking Department 11. Central Accounts & Legal Dept
4. Planning & Development Dept 12. Personnel Department
5. Recoveries Dept & General Admn Unit 13. Inspection Department
6. Dept. of Information Technology 14. Vigilance Department
7. Risk Management & Monitoring Dept.
8. Treasury & International Banking Division
Regional Offices - 35
Branches – 2125

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Board of Directors:
Chairman & Managing Director –Shri C. P. Swarnkar.
Executive Director –Shri George Joseph.
Directors:
Shri M. Deena Dayalan. Shri M Bhaskar Rao.
Shri K. Seetharamu Ms. Shobha
Shri Kawaljit Singh Shri A R Nagappan.
Shri Dinkar S Punja. Shri Bhupindar Singh Suri..
Shri Vinay Kumar Sorake. Shri Suresh Kumar Rastage
And having 21 General Manager heading different departments in the
organization
Board of Directors
Chairman & Managing Director
Executive Director Scale VIII
General Manager
Deputy General Manager
Assistant General Manager
Divisional Manager
Senior Manager
Manager
Assistant Manager

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2). Skills:
The blend of management skills with employee orientation and employee
skills with organizational loyalty is unique to Syndicate Bank. Having
introduced successfully the Core Banking Solution (CBS) with an entire
in house team of I.T. and Non –I.T. officers itself is a proof and track
record for the skills of the prudent banker with the focus of migration of
another 1500 branches to the CBS is a big leap in this direction.
Training policies and programmes are suitably designed, modified and
updated on a continuous basis to upgrade the knowledge levels and skills
of its Executives, Officers, and Workmen on par with the best in the
industry. While several new programmes are introduced in tune with the
Corporate Goals, the existing programmes are made more interactive and
learner –friendly. Risk Management and Basel II are the focal areas of
their training programmes to ensure Bank’s readliness to move over to the
new Basel II regime and extra care is taken to sensitize the workforce to
these issues.
The bank has taken its first step in e –learning initiative with the
uploading of reading materials on Export Finance, Agricultural Lending
and Financing SSI on its Intranet.
During the year, emphasis was given to train executives / officers in the
areas of Risk Management, Risk Based Supervision, Basel II,
Agricultural Lending, Credit Management, Corporate & Retail Credit,
Recovery Management, Marketing & Relationship Banking, Foreign
Exchange business and CBS.
(3). Style:
The conduct of the operations as well as administration at each
operational unit having effective internal control has a vivid style by

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itself. Every branch manager has his own style of functioning

individually but collectively is a syndicate team member, which is the
brand equity of the bank. The style of the bank in business or in
administration has a unique niche in the industry, poised to excel among
the peers.
Decision making style( powers of disposal):
Chief Manager Asst. General DGM GM

Manager
Chief Manager CM or AGM DGM
Desk Manager Desk Manager

CM or AGM
Desk Manager
(Scale II/ III) (Scale II/ III) (Scale II/ III)
Desk Manager
(Scale II/ III)
(4). Strategy:
Being one of the leading public sector banks with a culture of well
managed private sector professional institution, the strategy of the bank is
to be a premier among the peers and to excel in all the parameters are it
business or social responsibilities. To be the faithful and friendly financial
partner to their beloved clients. The strategy also includes concern for the
middle class and the moderate income group of the society for financial
inclusions. Evolving a product called “Synd Samanya”, with zero balance
in rural and semi –urban areas and ensuring 100% coverage at all lead
districts the goal under the financial inclusion which is being met. Thus,
all the products and services are targeted towards the above focus
including the core banking and internet banking etc. which are introduced
at a very nominal minimum balance and no hidden charges.
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Strategies for 2007-08

 Corporate theme for the year- “Acquire Accounts Aggressively,
Add Core Deposits Continuously”
 Year also marked as-Year of NPA resolution
(5). System:
The systems and procedures of the bank are a time tested one on sound
and scientific foundation. The systems and procedures are well defined
and are available with all the hierarchy as no need to know basis. The
recently developed best practice codes and the best behavioral practices
are the guiding factors of the systems prevailing. The well structured
process manuals are available for all the functional areas, be it business or
administration or inspection and audit.
(6). Staff:
The staff composition is so mixed and having experience and loyalty to
the institution as the core credentials reflecting the customer’s loyalty and
ethics. The bank has ventured into a recruitment drive at all levels to
ensure the mix of experience and youth at appropriate level and also to
ensure the age profiles of the cadres match with technological
advancement. An ongoing annual promotional process to ensure blending
of experience and expertise to be brought to the fore. A balanced team of
executives guide the operations.
The bank had a total staff strength of 28000 as on 31 -03 -2007.where as
the strength of Udupi is 85. And per employee productivity on that date is
4.98crores. The SC /ST Employees constituted 26.23% of the total staff
strength.

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The HR Policy has been geared to meet the Corporate objective of

accelerated and profitable growth. This includes Campus and Direct
Recruitments for replenishing skilled Man Power in Agricultural Finance,
IT, Accounts and Financial Management, International Business, Credit,
Marketing, Risk Management etc. The Promotion Policy has also been
fine tuned to reward Outstanding Performance and also to facilitate
Succession Planning.
(7). Shared Values:

The core of above 6Ss is the ground rules of shared values. It is like the
invisible software which works on the above 6S as the hardware and
makes the institution work to the desired level of output.
Vision, Mission and Quality Policy:
Vision (2006 -2010):

“Consolidating position as a Premier Public Sector Bank with Increased
Global Outreach”.
“Emerging as a Strong, Vibrant Responsive Competitive Bank”.
“Embracing state of art technology harnessing human potential and
effectively participating in the process of Nation Building”.
Serving its constituents and stakeholders as a “Faithful and Friendly
Financial Partner”.
Mission of Syndicate Bank: The Mission articulated for each of the

functional area of the Bank is highlighted below:

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 Resources: To achieve global deposits of Rs.50 thousand crore by

2006 and around Rs.59 thousand crore by 2007 with emphasis on low
cost resources slated to constitute at least 45% of the total resources
by planned strategic initiatives including branch expansion, aggressive
marketing and active involvement of each and every employee of the
Bank.
 Advances: To build a qualitative asset base of around Rs.35 thousand

crore by 2006 and Rs.41 thousand crore by 2007 to augment the
income portfolio of the Bank.
 Business: To achieve global business of nearly Rs.85 thousand crore

by March 2006 and attain Rs.100 thousand crore by 2007.
 Profitability: To make every branch a profit centre to earn a net profit

of Rs. One thousand crore by 2007and guarantee best possible returns
to the stakeholders value.
 Management of Assets: To focus on improving the quality of asset

portfolio by avoiding slippage of assets to NPA and to strive to
upgrade the existing non-performing assets to performing assets.
 Human Resources & Organization structure: To mould and strengthen

the organizational structure to meet the future Business requirements
and challenges. To redefine and redevelop peoples’ management
techniques so as to unleash human potential, drive growth and nurture
leadership of high quality corporate governance.
 Customer Relationship Management: To fine-tune our marketing

strategies to meet the ever-growing market demands, to ensure that
our products and services adapt to the changing needs and
expectations of the customer, to provide the customer the ideal

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banking ambience, to reorient our publicity so as to provide increasing

visibility to our Brand, to get our branches / offices ISO 9001-2000
compliant.
 Risk Management: To become Basel II compliant under all facets of

Risk Management and transform the Bank into total risk enabled
enterprises, which addresses the concerns of every stakeholder by
2008.
 Information Technology: To bring minimum of 80% of the Bank’s

business under Centralized Core Banking network by 2008 spanning
minimum of 700 branches across the country, supplemented by
additional delivery channels with 750 ATMs and 750 fully automated
branches, backed by a comprehensive fail safe Business Continuity
Plan.
 Forex and Treasury: To profitably manage the forex and investment

assets of the Bank to achieve a dealing room turnover of Rs. 565
thousand crore by March 2008 and a net profit of nearly Rs.100 crore.
 Para Banking: To achieve insurance premium collection of nearly

Rs.200 crore with a commission income of Rs.35 crore, a credit card
base of 2 lakh that brings in earnings of a minimum of Rs.15 crore and
a debit card base of 15 lakh fetching a net revenue of Rs.20 crore.
 Inspection: To migrate progressively from the present transaction

oriented inspection system to a risk based audit exercise enhancing the
effectiveness of risk management, control and governance processes.
SWOT ANALYSIS
ORGANISATION STUDY
SWOT Analysis refers to the strength and weakness of the company and
opportunities and threats in the environment. The investor should carry
out a SWOT analysis for the chosen industry. Take for instance, increase
in demand for the industry’s product becomes its strength, presence of
numerous players in the market, i.e. competition becomes the threat to a
particular industry. The progress in the research and development in that
particular industry is an opportunity and entry of multinationals in the
industry becomes the threat to that industry.
A SWOT Analysis is a strategic planning tool used to evaluate the

Strengths, Weaknesses, Opportunities, and Threats involved in a
project or in a business venture or in any other situation requiring a
decision.
The required first step in SWOT analysis is the definition of the desired
end state or objective. The definition of objective must be explicit and
approved by all participants in the process. This first step must be
performed carefully because failure to identify correctly the end state
aimed for leads to wasted resources and possibly failure of the enterprise.
Once the objective has been identified, SWOTs are discovered and listed.
SWOTs are defined precisely as follows:
Strengths: Are attributes of the organization that are helpful to the
achievement of the objective.
Weaknesses: Are attributes of the organization that are harmful to the
Opportunities: Are external conditions that are helpful to the

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Threats: Are external conditions that are harmful to the achievement of

the objective
Strength of Syndicate Bank:
 The Bank has a good image in the eyes of the general public.
Syndicate bank provides financial assistance to various sectors like
Agriculture, SSI, SME etc.
 As a part of its innovative strategies in product development process,
bank has constantly reviewed and redefined many of its products to
meet the ever –changing needs and expectations of the customers.
Like Synd-Samanya, Synd-Vidhyarthi
 The security arrangements in the bank are carried out satisfactorily. To
achieve quantitative improvements in key areas of security, the Annual
Security Action Plan had been effectively implemented.
 The bank has an effective and transparent system of Corporate
Governance driven by a highly professional Board which strives to
adopt the best business practices that can enable the Institution to
retain the competitive edge through innovation and world class
standards of delivery of contemporary services and products.
 In this context, the bank has placed systems in place for risk
assessment and management and provisions for continuous
monitoring. The bank has been proactive in conforming to the
requirements of the Regulatory Authorities.
 It is well equipped to meet the challenges of 21st century, in the areas
of IT, Knowledge and competition.

 It has launched Centralized Banking Solution (CBS) which covers
75% of the total business.
Weakness of Syndicate Bank:

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• The bank has implemented Core Banking Solution (CBS) by

networking 1529 branches spread across over 2120 Branches
covering over 75% of the Bank’s business, which need to cover all
the branches so as to cover 100% of the bank’s business.
• IT Policy and Strategy implementation by the bank has not been
covered to all the branches. Some of the facilities provided by the
Syndicate Bank like ATM, Credit Card, Debit Card are with in a
particular geographic area, which need to be expanded.
• The bank has only a single branch at London; more number of
branches must be developed, not only in India but also abroad.
• The large portion of their existing employees in the edge of
retirement, this may create a problem in the future.
Opportunity for Syndicate Bank:

The Central Banking Solution (CBS) has to be implemented in every
branch, so as to improve its business activity. More opportunity is there
for the bank if it implements all its branches totally with computerized
and the business may spread across the world if it diversifies some of the
branches in various countries. The bank continues to identify new areas
and activities that require attention, as well as the risk management skills,
processes, and practices that need to be developed and strengthened.
The bank is planning to adopt best international practices in Credit Risk
Management and Basel II implementation by outsourcing end to end
solution viz., on –line appraisal system, risk assessment, risk inputs
estimates, capital computation and RAROC framework. The Bank is also
in process of engaging reputed consultant to design and implement
Operational Risk Management Framework.

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Threats for Syndicate Bank:

In this technological and fast growing world the greatest threat for the
bank is to compete with other public sector banks, private banks and also
foreign banks. Syndicate bank has to prove that it’s unique in providing
various products and services to its customers. This is possible by
continuous improvement and adopting technological advancements.
Government policies may go strict. More and more government policies
make the company follow the rules which ultimately affect the company
revenues.
 Intense competition in the market.
 Market share redistribution.
 Market place is becoming smarter.
Conclusion:
It is not simply enough to identify the strengths, weaknesses,
opportunities, and threats of a company. In applying the SWOT analysis
it is necessary to minimize or avoid both weaknesses and threats.
Weaknesses should be looked at in order to convert them into strengths.
Likewise, threats should be converted into opportunities. Lastly, strengths
and opportunities should be matched to optimize the potential of a firm.
Applying SWOT in this fashion can obtain leverage for a company.

ORGANISATION STUDY
ANALYSIS OF FINANCIAL PERFORMANCE

Financial Analysis of syndicate Bank for the year
ending 2007
Syndicate Bank, which has a balance sheet size of Rs.900 billion, is

among the ten largest state-owned banks in India in terms of asset size.
The bank operates through a network of 2,126 domestic branches and one
international branch. It has a dominant presence in the southern region,
which houses 58% of its branches. The bank made its first public offer in
1999, when it offered 125 million equity shares at par and raised Rs1.25
billion. It raised further capital of Rs2.5 billion in July 2005, by offering
50 million shares at a premium of Rs40 per share. As a result, the
government's stake has reduced to 66.5%.
Recent developments
• Syndicate Bank has revised its benchmark prime-lending rate
(PLR) from 12.25% to 13% in April 2007.
• Balance sheet growth remains strong
• Margins decline YoY but expand QoQ
• Treasury profits flat; other income up 10% in FY07
• Asset quality improves, with net NPAs down to 0.76%
• Tier-I CAR down to 6.2%; bank would need capital in FY08

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Analysis of Bank’s annual report 2006-07

Syndicate Bank is progressing well under all parameters,
Global Business:
2006 2007
Global business Rs.105143 crores Rs.132526 crores
Domestic business Rs.96212 crores Rs.123095 crores
• The Global Business of the bank as on 30th June 2007 grew by

26.04% and stood at Rs.132526 crores as against Rs.105143 crores
as on 30th June 2006. The bank has strategically opted for moderate
growth during the current fiscal.
• Domestic business as on 30th June 2007 increased to Rs.123095

crores from Rs.96212 crores as on 30th June 2006, registering a
growth of 27.94%.
Deposits:
2006 2007
Total deposits Rs.63829 crores Rs.80682 crores
Domestic deposits Rs.59979 crores Rs.76480 crores
• The Bank’s total deposits reached a level of Rs.80682 crores as on

30th June 2007 from Rs.63829 crores as on 30th June 2006,
recording a growth of 26.40%.
• The growth of deposits in Q1 was 2.60%. The low cost deposits

increased by 32% to Rs. 26045 crores as on 30th June 2007 from
Rs.20374 crores as on 30th June 2006.
• The Bank will effectively leverage on the 2 Million plus accounts

opened by the Bank in 2006-07 and new accounts opened in the
first quarter to accelerate the growth of low cost deposits.
ORGANISATION STUDY
• The domestic deposits, with the growth of 27.51%, scaled to a

level of Rs.76480 crores as on 30th June 2007 from Rs.59979 crores
as on 30th June 2006.
Advances:
2006 2007
Global gross advances Rs. 41314 crores Rs. 51844 crores
Domestic advances Rs.36233 crores Rs.46615 crores
• The Global gross advances as on 30th June 2007 increased by

25.49% to a level of Rs. 51844 crores from Rs. 41314 crores as on
30th June 2006. The CD ratio as on 30th June 2007 was placed at
64.26% as against 64.73% reported as of 30th June 2006.
• The domestic advances grew by 28.65% to a level of Rs.46615

crores as on 30th June 2007 from Rs.36233 crores as on 30th June
2006.
Net profit:
2006 2007
Net profit Rs. 180.58 crores Rs. 221.03 crores
• The net profit of the Bank increased to Rs. 221.03 crores for the
quarter ended 30th June 2007 from Rs. 180.58 crores for the quarter
ended 30th June 2006.
• The year-on-year growth of net profit works out to 22.40%. The

growth is achieved from the higher NII of Rs. 41 crores and despite
higher operating expenditure by Rs.48 crores as compared to the
previous quarter.

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Operating Profit:
2006 2007
Operating profit Rs.293.95 Rs.314.52
• The operating profit for the quarter ended 30th June 2007 stood
at Rs.314.52 crores as against Rs.293.95 crores reported for the
quarter ended 30th June 2006 thereby recording a growth of
7%.
• The low growth is mainly due to increased deposit cost on

account of hardening of interest rate and higher depreciation of
Rs.8 crores for investment of around Rs.132 crores incurred on
account of accelerated CBS conversion in the last year and in
the first quarter of the current year.
Total Income:
2006 2007
Total income Rs.1357 crores Rs.1999 crores
Interest income Rs.1231 crores Rs.1846 crores
Profit on sale of investments Rs. 24 crores Rs. 38 crores
• The total income of the Bank increased to Rs.1999 crores during

the Q1 of 2007-08 from Rs.1357 crores against Q1 of 2006-07, an
increase of 47.33%, mainly contributed by the growth in interest
income.
• Interest income for the quarter ended 30th June 2007 improved to
Rs.1846 crores from Rs.1231 crores reported for the quarter ended
30th June 2006. While the overall growth in interest income works
out to 50%, the increase in interest on advances was to the extent
of 58.40%.

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• The profit on sale of investments was to the extent of Rs. 38 crores

for the quarter ended 30th June 2007 as against Rs. 24 crores earned
for the quarter ended 30th June 2006. The fee based income
increased to Rs.127 crores for the quarter ended 30th June 2007
from Rs.110 crores for the quarter ended 30th June 2006, increase
by 15.45%.
Net Interest Income (NII):
2006 2007
Net Interest Income Rs.506 crores Rs.547 crores
• The NII for the quarter ended 30th June 2007 grew by 8% and
stood at Rs.547 crores as against Rs.506 crores for the quarter
ended 30th June 2006.
Net worth:
2006 2007
Net worth Rs.2818 crores Rs.3406 crores
• The Net worth of the Bank increased to Rs.3406 crores as on

30th June 2007 from Rs.2818 crores as on 30th June 2006,
mainly contributed by the retained earnings.
NPA Management
2006 2007
Non Performing Asset 3.85% 3.06%
• Gross NPA came down to 3.06% as of 30th June 2007 from

3.85% as of 30th June 2006. Net NPA came down to 0.82% as of
30th June 2007 from 0.86% as of 30th June 2006.
Capital Adequacy Ratio (CAR):
• The CAR stood at 12.62% as of 30th June 2007 well above the
stipulated mark of 9%. The Tier I ratio was placed at 6.92% as of
30th June 2007 and the Tier II ratio stood at 5.70%.
Other Financial Parameters:
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i) Return on Assets: The return on assets declined to 0.98% as on 30th

June 2007 from 1.02% as on 30th June 2006. The ratio as on 31st March
2007 was 0.91%.
ii) Earning per share (EPS): EPS improved to Rs. 16.92 as on 30th June
2007 from Rs. 13.84 as on 30th June 2006.
iii) Book Value per Share: The Book Value per share increased from Rs.
57.74 as on 30th June 2006 to Rs. 73.59 as on 30th June 2007.
iv) Employee Productivity: Business per employee improved from Rs.

4.04 crores as on 30th June 2006 to Rs. 4.96 crores as on 30th June 2007.
Analysis of balance sheet and Profit & Loss Account of three years
as on 31-03-2005 to 31-03-2007:
The balance sheet of the Bank could be analyzed on the basis of the
following important aspects,
(Rs, in ‘000’)
31-03-2005 31-03-2006 31-03-2007
Capital 471,96,83 521,96,83 521,96,83
Deposits 46294,56,25 53624,39,47 7863,35,67
Borrowings 322,00,93 343,05,50 1373,52,94
Investments 20370,73,32 17269,10,84 25234,01,14
Advances 26729,20,28 36466,23,31 51670,43,80
Income:
Interest earned 3757,62,37 4050,41,90 6040,07,15
Other income 564,55,41 561,96,59 618,47,63
Total 4322,17,78 4612,38,49 6658,54,78
Expenditure:
Interest expended 2063,79,59 2169,54,87 3890,01,62
Operating expenses 1264,20,34 1434,81,37 1385,97,52
Provisions & contingencies 591,27,74 471,53,01 666,49,56
Total 3919,27,67 4075,89,25 5942,48,70

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Profit / Loss:
Net profit 402,90,11 536,49,24 716,06,08
Ratio analysis
Ratio analysis is the mostly widely used method for the analysis of
financial statement. A financial ratio is a ratio of selected values on a
enterprise's financial statements. There are many standard ratios used to
evaluate the overall financial condition of a corporation or other
organization. Financial ratios are used by managers within a firm, by
current and potential stockholders (owners) of a firm, and by a firm's
creditors. Security analysts use financial ratios to compare the strengths
and weaknesses in various companies. If shares in a company are traded
in a financial market, the market price of the shares is used in certain
financial ratios.
Values used in calculating financial ratios are taken from the

balance sheet, income statement, cash flow statement and (rarely)
statement of retained earnings. These comprise the firm's "accounting
statements" or financial statements.
The important ratios are as under,
 Return on Assets
 Earnings Per Share
 Profit Margin ratio
 Interest Expended Ratio.
Profit Margin ratio

ORGANISATION STUDY
Profit margin measures the relationship between the total income

and profit of the company. As the profits may be gross or net , there are
two types of profit margin gross profit margin and net profit margin.
Net profit margin measures the relationship between net profits and
total income of the firm.
Formula:
Net Profit
× 100
Total Income

ORGANISATION STUDY
Interpretation:
The ratio reveals that the profit margin has been reduced in the year
2006-07 that is 10.75%, this is due to the increase in the total expenses of
the bank. The major expense being the interest, which is increasing from
the previous years.
Return on Assets ratio

Return on Assets ratio is one of the profitability ratios which is
measured in terms of the relationship between profits and assets. The
ROA may also be called profit-to-asset ratio. It measures the profitability
of the total investments of the firm.
Formula:
Net Profit
× 100
Total Assets
Particulars 31-03-2007 31-03-2006 31-03-2005

Net Profit 7161108 5364924 4029011
Total Assets 892772901 610767552 521094246
ROA 0.80% 0.88% 0.77%
Interpretation:
The analysis shows that return on assets in the year 2006 is highest
i.e .88%. But in the year 2007 it has been reduced to .80%, this is due to
underutilization of the assets of the bank. In other words assets of the
bank are not employed where optimum returns can be earned.
Interest Expense ratio

Interest Expense reveals the relationship between the interest
expended and the total income. The more the interest expense the less is
the value of the ratio. This ratio also reveals the proportion of the amount
paid as interest out of the total income of the company.
Formula

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Interest Expended
× 100
Total Income
Particulars 31-03-2007 31-03-2006 31-03-2005

Interest 38900127 21695487 20637959
Expended
Total Income 66585478 46419943 43480439
Interest 0.58% 0.47% 0.47%
expense
Ratio
Interpretation:
The ratio shows that .58% of the total income is paid as interest. It
shows the interest expenditure is rising as compared to the past three
years which in turn reduces the profit of the bank.
Earnings Per Share

It measures the profit available to the equity shareholders on a per share
basis, that is, the amount that they can get on every share held. It is
calculated by dividing the profits available to the shareholders by the
number of the outstanding shares.
Formula:
Net Profits Available to equity shareholders

EPS = × 100
No of Shares outstanding
31-03- 31-03- 31-03-

Particulars
2007 2006 2005
Earnings Per
13.72% 10.60% 8.54%
Share
Interpretation
This shows that the profits available to equity shareholders have

been increased over a period of time. This is because the total income of
the bank has been increasing from the past years. It is the measure of
profitability from the owner’s point of view.

ORGANISATION STUDY
Perticulars 31-Mar-07 31-Mar-06 31-Mar-05

Interest Expense/ Interest Income (%) 64.40 53.56 54.92
Fee Based Income/ Total Income (%) 7.61 7.30 6.76
Employee Cost / Operating Cost (%) 66.95 74.63 78.37
Total Interest exp / Avg. interest bearing
5.81 4.31 4.62
funds (%)
Interest spread (%) 3.20 3.51 3.81
Fund Based Income / Funds employed (%) 7.69 7.78 8.52
Net Profit / Funds Employed (%) 0.86 0.94 0.83
PAT / Net worth (%) 19.76 18.93 18.33
Tax / PBT (%) 0.00 0.00 7.04
Total liabilities / Net worth 24.63 21.55 23.70
Investment Deposit Ratio 0.32 0.32 0.44
Credit Deposit Ratio 0.66 0.68 0.58
Capital Adequacy Ratio 10.70 11.73 11.74
Ratio of NPA’s to Net Advances 1.59 0.86 0.76
Yield on advances 8.64 8.72 9.28
Cost of deposits 4.58 4.48 5.44
Return on assets 0.82 0.91 0.91
Share statistics:
As on 31-Mar-07 31-Mar-06 31-Mar-05
EPS (Rs.) 13.72 10.28 8.54
CFPS (Rs.) 15.32 11.15 9.33
Book Value
69.41 54.29 46.58
(Rs.)
DPS (Rs.) 3.23 2.85 2.26

ORGANISATION STUDY
LEARNING EXPERIENCE
Learning Experience Gained
Without a sound and effective banking system in India it cannot have a

healthy economy. The banking system of India should not only be hassle
free but it should be able to meet new challenges posed by the technology
and any other external and internal factors.
Various banks like Public Sector Bank, Private Sector Bank, Financial
institution etc. are making sincere efforts to meet the expectations of the
customer by providing better products and services.
Syndicate bank is one among the Top Tenth bank in public sector. The
study has highlighted that the bank is mainly focusing on customers’
satisfaction through various schemes. Syndicate bank is started the
PIGMI deposit scheme. Which now generating deposits of Rs 20000000
per day .The study reveals that the Syndicate Bank continues to identify
new areas and activities that require attention, for example the very recent
schemes like
Pigmy plus, Sindvidyarthi, syndsamanya are best examples. The risk
management skills, process, and practices that need to be developed and
strengthened. The bank is planning to adopt best international practices in
Credit Risk Management and Base II implementation by outsourcing end
to end solution viz., on –line appraisal system, risk management, risk
inputs estimates, capital computation and RAROC framework. The bank
is also in process of engaging reputed consultant to design and implement
Operational Risk Management Framework. Apart from these the bank is
also aiming to:

ORGANISATION STUDY
1. Highly focused on human resources initiative. An employee is given

ample opportunities to learn and grow.
2. Bank has to give importance to:
National Priorities:
Some of the National priorities given by the bank in the areas like:
Priority Sector Credit, Agriculture and Allied Activities, Rural
Extension Education Programmes, Relief Measures for farmers,
Housing Sector, Harnessing Solar Energy etc.
Social Development:
Syndicate Rural Development Trust, Rural Development and Self
Employment Training Institute, SyndVidya, Implementation of
Official Language (Hindi) etc. are its some of the concern towards
social development.
SME Sector:
 The bank is aiming for a minimum of 20% year –on –year growth
in the outstanding credit to SME, with a view to doubling the credit
to SME’s by 2009 -10.
 The bank is also providing composite loans up to Rs. 100 lacs to
tiny sector.
 The bank has the novel, exclusive schemes for providing hassle
free credit to SME’s like, Syndicate Laghu Udyami Credit Card
wherein finance up to Rs.10 lacs can be made to small
entrepreneurs and SyndUdyog, wherein, SME’s can be financed up
to Rs. 50 lacs.
3. The security arrangements in the Bank are carried out satisfactorily. To
achieve quantitative improvements in key areas of security, the Annual
Security Action Plan had been effectively implemented.

ORGANISATION STUDY
Apart from these issues the bank has to concentrate on various aspects
like:
Provide employment opportunities, provide better services, and focus on
SME, Agriculture sector because they constitute a major part for the
development of GDP of any nation; better training has to be given to the
employees so that they can cope up with the latest technology which the
bank is adopting now a days (CBS).
In the present era, many banks make their best effort to attract number of
customer towards them, which resulted in aggressive competition in
banking industry. So, Syndicate Bank must cope up with the latest
technology so as to provide better services for the customers, they must
make an effort to study well the mindset of the customer and provide new
products and services. As all the banks are trying to attract more industry
to borrow loan from the bank, it is necessary for Syndicate Bank to
improve the quality of service provided by the adoption of new
technology like CBS, ATM, Global Card etc. in all their respective
branches.

ORGANISATION STUDY
CONCLUSIONS
Syndicate Bank Over the years has been various political, social and
economic transitions. Today, Indian banking is under reform process.
Foreign Banks are entering into market and private banks are gaining
momentum. This stage is crucial for a nationalized Bank like
SyndicateBank. Its future depends on how it can face threats and cash on
opportunities. Thinking globally considering local aspects is the need of
this hour. Syndicate Bank must use its vast banking experience to gain a
strong hold in the Indian banking system and build a globally respected
brand.
SyndicateBank has a bright future as it gives greater thrust towards

technological upgradation of its operations besides this, the bank has also
installed ATM’s at most of its branches.
Realizing and evolving the diverse needs of customers the Bank has
diversified too, entering several new areas such as credit card merchant
banking, hire purchase and leasing and electronic remittance service etc.
SyndicateBank is one among the few banks in the country to take up

principal membership of VISA International and MasterCard
International.
Thus the activities of Bank are improving day by day. Today,

SyndicateBank is a vibrant institution. It has spread its branch network in
all 28 states and 4 union territories of the country and also abroad.

FINANCIAL RESULTS FOR THE NINE MONTH PERIOD ENDED DECEMBER 31, 2007
SyndicateBank
HEAD OFFICE, MANIPAL - 576 104, KARNATAKA
UNAUDITED ( REVIEWED ) FINANCIAL RESULTS FOR THE NINE MONTH PERIOD ENDED DECEMBER 31, 2007
(Rs. in Lakhs)
Sl Particulars Quarter Quarter Nine Nine Previous
No ended ended months months Accounting
31/12/2007 31/12/2006 ended ended year ended
(Reviewed ) (Reviewed 31/12/2007 31/12/2006 31/03/2007
) (Reviewed (Reviewed (Audited)
) )
1 Interest earned (a+b+c+d) 198700 163530 577188 430343 604007
a) Interest/discount on advances/bills 142678 114375 415464 296806 417992
b) Income on investments 53670 44309 154856 125055 170530
c) Interest on balances with Reserve Bank of 533 4632 5047 8239 15205
India and other inter bank funds
d) others 1819 214 1821 243 280
2 Other Income 27863 14073 64809 42472 61848
3 TOTAL INCOME (1+2) 226563 177603 641997 472815 665855
4 Interest Expended 151297 107937 426175 275704 389002
5 Operating Expenses (e+f) 38005 37684 114506 106212 138597

e) Employees cost 23764 25056 73040 70752 89447
f) Other operating expenses 14241 12628 41466 35460 49150
6 TOTAL EXPENDITURE (4+5) 189302 145621 540681 381916 527599
(Excluding Provisions and Contingencies)
7 OPERATING PROFIT (3-6) 37261 31982 101316 90899 138256

(Profit before Provisions and Contingencies)
8 Provisions (other than tax) and Contingencies 4370 13950 15080 29303 65474
9 Exceptional items 0 0 0 0 0
10 Profit(+)/Loss(-) from ordinary activities 32891 18032 86236 61596 72782

before tax (7-8-9)
11 Tax expenses 5572 -4580 14056 420 1176
12 Net Profit(+)/Loss(-) from ordinary activities 27319 22612 72180 61176 71606
after tax (10-11)
13 Extraordinary items (net of tax) 0 0 0 0 0
14 Net Profit(+)/Loss(-) for the period (12-13) 27319 22612 72180 61176 71606
15 Paid-up equity share capital 52197 52197 52197 52197 52197

(Face value of the share Rs. 10/- each)
16 Reserves excluding revaluation reserves 338479 211558 338479 211558 266298

(as per balance sheet of previous accounting year)
17 Analytical Ratios
i) Percentage of share held by Govt. of India 66.47% 66.47% 66.47% 66.47% 66.47%
ii) Capital Adequacy Ratio 11.99% 11.23% 11.99% 11.23% 11.74%
iii) Earning per share (Rs.)
(a) Basic and diluted EPS before
Extraordinary items (net of tax expense) for 13.83 11.72 13.72
the period, for the year to date and for the 5.23 4.33
previous year (not to be annualised)
(b) Basic and diluted EPS after
Extraordinary items for the period, for the 13.83 11.72 13.72
year to date and for the previous year (not
to be annualised) 5.23 4.33
iv) NPA RATIO
(a) Gross NPA 160472 165211 160472 165211 155981
(b) Net NPA 70278 43780 70278 43780 39101
(c ) % of gross NPAs 2.86 3.33 2.86 3.33 2.95
(d) % of net NPAs 1.27 0.90 1.27 0.90 0.76
v) Return on Assets 1.16 1.18 1.02 1.06 0.91
18 Public Shareholding
- No. of shares 175000000 175000000 175000000 175000000 175000000
- Percentage of share holding 33.53% 33.53% 33.53% 33.53% 33.53%
Rs. in Rs. P.
Consolidated Details for the nine months period ended 31.12.2007 Crores
1 Consolidated turnover 141,569.00
2 Consolidated Net Profit 722.04
3 Consolidated EPS (Not Annualised) 13.83
4 Consolidated EPS (Annualised) 18.44
BIBLIOGRAPHY
• www.finance.indiamart.com/investment_in_india/banking_in_india.html
• http://syndicatebank.in
• IBA bulletins.
• Brochures, Hand Books, Circulars, Magazines, Annual reports provided

by SyndicateBank
• Book titled “Syndicate Bank A Peoples Bank” by M. V. Kamath.

CONTENTS
1.Introduction 1
2.Industry Profile 3
3.Company Profile 18
4.Products and Services
21
Profile
5.McKinsey’s 7S
52
Framework
6.SWOT Analysis 62
7.Analysis Of Financial
66
Performance
8.Learning Experience 77
9.Conclusion 80
10.Annexure 81
11.Bibliography 84
BHANDARKARS’ ARTS AND SCIENCE
COLLEGE, KUNDAPUR
CERTIFICATE
This is to certify that Mr. PRASHANTHA SHETTY K. is a student of Final Year
B. B. M. 2007-08 of this institution. This project report Titled “A PROJECT
REPORT ON ORGANIZATION STUDY OF SYNDICATE BANK” has been
prepared by him in partial fulfillment for the requirement of the Bachelors Degree
in Business Management, to be submitted to Mangalore University, under the
supervision and guidance of Ms. VIDYA, Lecturer, Department of Commerce and
Business Management.
Guide Head of the Department of Principal

Commerce and Business
Management
Date:
Place: Kundapura
COLLEGE, KUNDAPUR
DECLARATION
I PRASHANTHA SHETTY K, a student of BHANDARKARS’ ARTS
AND SCIENCE COLLEGE, KUNDAPUR, Final Year B. B. M.
2007-08 do hereby declare that this project report Titled “A
PROJECT REPORT ON ORGANIZATION STUDY OF SYNDICATE BANK”
is my original work and that it has not previously formed the basis
for the reward of any Degree / Diploma or other similar title.
This project is been prepared by me in partial fulfillment for the
requirement of the Bachelors Degree in Business Management, to
be submitted to Mangalore University, under the supervision and
guidance of Ms. VIDYA, Lecturer, Department of Commerce
and Business Management.
Date:
Place: Kundapura
(MR. PRASHANTHA SHETTY K.)
ACKNOWLEDGEMENT
I am very much beholden to Mangalore University

for this wonderful opportunity to undertake the Project Study
as a part of the fulfillment of Bachelor’s Degree in Business
Management.
My grateful thanks are due to Prof. NARAYAN
RAO the Principal, Bhandarkars’ Arts and Science College for
extending the necessary support in the preparation of this
project.
A particular word of thanks is due to Prof. K
SHANTHARAM H.O.D. of Commerce and Business
Management and other faculty members for their useful tips
and encouragement. My esteemed guide, Ms. VIDYA,
Lecturer in Business Management, deserves all appreciation
and thanks for patiently and efficiently guiding me
throughout the preparation of this project.
I am extremely grateful to Deputy General
Manager SRI SUJIR PRABHAKAR, Assistant General
Manager SRI H VASANTH NAYAK & STAFF OF
SYNDICATEBANK Regional Office Udupi for providing the
necessary information
I also express my gratitude to RADHAKRISHNA
JOISA, Personal Department Head Office Manipal for his
words of wisdom, encouragement and the interest he had to
make my project an interesting and educative one.
Above all I thank my parents for helping, and
encouraging me throughout my project work and also my
friends and Mr. DINESH BHAT of BHAT'S TELECOM
CENTRE, who have helped me in completing this project on
time.
Submitted By
Mr. Prashantha Shetty K.

Reg. No. 050080049
Under The Guidance of

Ms. VIDYA,
Lecturer,
Department of Commerce and Business Management
Project Report submitted to Mangalore University in

partial fulfillment for the requirement of the
Bachelor’s Degree in Business Management.

COLLEGE, KUNDAPUR

Prashanth PROJECT

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ORGANISATION STUDY

Data Collection is a Step in the preparation of project report. The

Data is collected by the interacting with bank managers and officers.

The data is collected for report by various records maintained and

 To study the loans and advances of the bank

 To study the evaluation and performance of the bank

 To study the financial statement

 To study the source of finance of the bank

 To study the history of the bank

 To understand functioning of bank

PRASHANTHA SHETTY K, B. B. M. FINAL YEAR REG. NO. 050080049 1

PRASHANTHA SHETTY K, B. B. M. FINAL YEAR REG. NO. 050080049 2

A bank is a business center that deals in financial services. A bank is a

Definition of Banking Company:

PRASHANTHA SHETTY K, B. B. M. FINAL YEAR REG. NO. 050080049 3

advancing them as loans to the needy people. The deposits may be

 Deposits must be withdrawable: The deposits made by the public

can be withdrawable by cheques, draft or otherwise, i.e., bank issue

credit i.e., creation of additional money for lending. Thus, “creation of

 Commercial in nature: Since all the banking functions are carried on

with the aim of making profit, it is regarded as a commercial

 Nature of agent: Besides the basic functions of accepting deposits

and lending money as loans, bank possesses the character of an agent

PRASHANTHA SHETTY K, B. B. M. FINAL YEAR REG. NO. 050080049 4

The Indian Banking industry, which is governed by the Banking

PRASHANTHA SHETTY K, B. B. M. FINAL YEAR REG. NO. 050080049 5

Stages of development of Banks in India

At the beginning of the 20th century, Indian economy was passing

PRASHANTHA SHETTY K, B. B. M. FINAL YEAR REG. NO. 050080049 6

Under these circumstances, many Indians came forward to set up banks,

During the Wars

boost due to war-related economic activities. At least 94 banks in India

Years No. of Banks Authorised capital (Rs. Paid up capital (Rs.

The partition of India in 1947 had adversely impacted the economies of

• In 1948, the Reserve Bank of India, India's central banking

• In 1949, the Banking Regulation Act was enacted which empowered

PRASHANTHA SHETTY K, B. B. M. FINAL YEAR REG. NO. 050080049 8

• The Banking Regulation Act also provided that no new bank or

However, despite these provisions, control and regulations, banks in India

The nationalization of 14 major banks with deposits of Rs. 50 crores or

PRASHANTHA SHETTY K, B. B. M. FINAL YEAR REG. NO. 050080049 9

momentum after the nationalization of major commercial banks and the

Branch expansion of all commercial banks:

Table No. 01.

As on Total No. of Rural Rural Branches Population per

Table No. 02.

Year No. of reporting Bank deposits Bank credit

PRASHANTHA SHETTY K, B. B. M. FINAL YEAR REG. NO. 050080049 10

Banks (Rs. Crores). (Rs. Crores).

1950 -51 430 820 580

Growth of deposits in India of all scheduled commercial banks was as

In the early 1990s the then Narasimha Rao government embarked on a

PRASHANTHA SHETTY K, B. B. M. FINAL YEAR REG. NO. 050080049 11

Currently (2007), overall, banking in India is considered as fairly mature

PRASHANTHA SHETTY K, B. B. M. FINAL YEAR REG. NO. 050080049 12

expected to be strong. M&As, takeovers, asset sales and much more

Currently, India has 88 scheduled commercial banks (SCBs) - 28 public

As far as the present scenario is concerned the banking industry in India

PRASHANTHA SHETTY K, B. B. M. FINAL YEAR REG. NO. 050080049 13

Punjab National bank, Vijaya Bank, UCO Bank, Oriental Bank,

ANZ Grindlays Bank, ABN-AMRO Bank, American Express Bank Ltd,

Diagram: Shows the Banking Structure in

Reserve Bank of India