Dissertation Project

RETAIL BANKING

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CHAPTER 1

INTRODUCTION

Alpa Dixit

Bangalore Institute Of Management Studies

RETAIL BANKING

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1.1 BACKGROUND OF STUDY

Retail banking is typical mass-market banking where individual customers use

local branches of larger commercial banks which act as one-stop shop for as

many financial services as possible. Retail banking can be crudely defined as the

antonym of wholesale or bulk banking. It is nothing, but shared business. For eg:

a deposit of Rs.1 lakh from single customer vs. small deposits of Rs.10,000 each

from 10 different customers. Retail banking generally refers to offering financial

services, products related to deposits and assets to individual customers for

personal consumption. It refers to a banking in which banking institutions execute

transactions directly with consumers, rather than with other corporations or

banks. Banks concentrate on various segments like professionals, housewives,

pensioners, children, salaried class etc. Different types of products and services

like savings and recurring accounts, mortgages, personal loans, debit/credit

cards, certificates of deposit etc. are offered by banks to the above mentioned

marked segments. Some retail banks have even made a push into investment

services such as wealth management, brokerage accounts, private banking and

retirement planning.

Retail banking is, however, quite broad in nature - it refers to the dealing of

commercial banks with individual customers, both on liabilities and assets sides

of the balance sheet. Fixed, current / savings accounts on the liabilities side; and

mortgages, loans (e.g., personal, housing, auto, and educational) on the assets

side, are the more important of the products offered by banks. Related ancillary

services include credit cards, or depository services. Retail banking refers to

provision of banking services to individuals and small business where the

financial institutions are dealing with large number of low value transactions.

Retail banking and retail lending are often used as synonyms but in fact, the later

is just the part of retail banking. In retail banking all the needs of individual

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customers are taken care of in a well-integrated manner. Today’s retail banking

sector is characterized by three basic characteristics: multiple products (deposits,

credit cards, insurance, investments and securities), multiple channels of

distribution (call center, branch and internet) and multiple customer groups

(consumer, small business and corporate). Retail banking is now an alternative

available for the banks for increasing their earnings. Retail Banking is an

attractive market segment having a large number of varied classes of customers.

Retail Banking focuses on individual and small units. Hence, the risk is spread

and the recovery is good. Surplus deployable funds can be put into use by the

banks. Products can be designed, developed and marketed as per individual

needs.

Retail banking has immense opportunities in a growing economy like India. As

the growth story gets unfolded in India, retail banking is going to emerge a major

driver. The rise of Indian middle class is an important contributory factor in this

regard. The percentage of middle to high-income Indian households is expected

to continue rising. The younger population not only wields increasing purchasing

power, but as far as acquiring personal debt is concerned, they are perhaps more

comfortable than previous generations. Improving consumer purchasing power,

coupled with more liberal attitudes towards personal debt, is contributing to

India’s retail banking segment. The combination of above factors promises

substantial growth in retail sector, which at present is in the nascent stage. Due

to bundling of services and delivery channels, the areas of potential conflicts of

interest tend to increase in universal banks and financial conglomerates. Some of

the key policy issues relevant to the retail-banking sector are: financial inclusion,

responsible lending, and access to finance, long-term savings, financial

capability, consumer protection, regulation and financial crime prevention.

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The domain of retail banking market has tremendous growth potential for banks

and finance companies, as at present it is largely untapped. The penetration level

is 2.5 to 3 % and is in a scenario when the requirements of the consumers are

growing. In the past, people never believed in buying consumer goods on credit.

But today the attitude is changing. The demand for consumer products has

increased. Today, about 70% of consumer goods purchased are through finance

schemes/loans as against 40% about 1 to 6 years ago. The home loans alone

account for nearly two-third of the total retail portfolio of the bank.

Graph 1 : Total Net bank credit

According to the Reserve Bank of India

annual report for 2008-09, as on

March 22, 2009, retail credit

outstanding amounted to Rs

3,70,000 crore, including housing

loans, loans for consumer

durables, loans to individuals

against shares and bonds, other

non-priority sector personal loans

and advances against fixed deposits. Behind this figure were several factors:

sectoral GDP shifts, demographic changes, growing middle-class disposable

incomes, low NPAs and high returns, low interest rates, growing consumerism

and fiscal incentives for housing. Housing loans constitute about 50 per cent of

bank credit, with loans for automobiles, consumer durables, and education, and

credit card receivables making up the rest.

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Net Bank Credit

14.1%

85.9%Retail credit

Others

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Table 1 : Composition of Retail Credit

COMPOSITION OF RETAIL CREDIT

(Figures in brackets indicate percentage to the total) Rs. In crores

Sr. No Type Mar-06 Mar-07 Mar-08

1 Housing 14100 16143 22346

(3.52) (3.44) (4.16)

2 Consumer durables 3855 5566 7015

(0.96) (1.19) (1.31)

3 loans to individuals against shares/bonds 2146 1697 1520

(0.54) (0.36) (0.28)

4 other non-priority sector personal loans 15409 18064 23402

(3.84) (3.85) (4.36)

5 sub-total 35510 41470 54283

(8.86) (8.84) (10.11)

6 Gross bank credit 400818 469153 536727

(100) (100) (100)

Source: Report on Trend and progress of Banking in India 2007-08,RBI

A banks retail offering can be broadly categorized into core service, facilitating

service, and supporting service. Core service is the reason for being in the

market, facilitating services are needed so that the core service can be used, and

supporting services exactly discriminates the service package from the services

of competitors.

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Table 2 : Categorization of retail bank services:

Core services Facilitating services Supporting services

Payment services Cash

Foreign Currency

Requirement

Traveler Charges

DD/ Bankers Cheque

IT

EFT

Making payments at door

step

Internet banking

Telephone banking

Current account and

savings account

ATM card

Standing instructions

from customers for

making payments

Interbranch/interbank

transfer of funds

Safety vault

Credit cards

Debit cards

Services to senior

citizens

Telephone banking

Internet banking

Conversion of excess

balance to Time deposits

Loan products:

Consumer loans,

personal loans, housing

loans, educational loans

Current account

Savings account

Time deposit account

Delivery of loan at

promised time period

Interest rate option:

Fixed/floating

Flexibility in pre-payment

of loan

Counseling on Real-

estate markets

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Legal services for

documentation

ECS for payment of loan

installments

Insurance products: Life

insurance, pension

schemes

Current account

Savings account

Time deposits

Safety vaults

Additional insurance

facility for family

members

Counseling on post

retirement savings

Ubiquitous retail banking products are now the order of the day, with "anywhere,

anytime, any-type banking" having come to stay. Exploitation of the

"glocalisation" (think global, act local) potential requires robust growth in retail

loans. Retail loans constitute 5 per cent of GDP vis-à-vis about 35 per cent for

other Asian economies — South Korea (55 per cent), Taiwan (52 per cent),

Malaysia (33 per cent) and Thailand (18 per cent). The level of retail banking

penetration, at 12 per cent of total loans and advances, also continues to be

significantly low.

With a jump in the Indian economy from a manufacturing sector to a nascent

service sector, banking as a whole is undergoing a change. A larger option for

the consumer is getting translated into a larger demand for financial products and

customization of services is fast becoming the norm than a competitive

advantage. With the retail banking sector expected to grow at a rate of 30%,

players are focussing more and more on the retail and are waking up to the

potential of this sector of banking.

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The Indian players are bullish on the retail business and this is not totally

unfounded. There are two main reasons behind this. Firstly, it is now undeniable

that the face of the Indian consumer is changing. This is reflected in a change in

the urban household income pattern. The direct fallout of such a change will be

the consumption patterns and hence the banking habits of Indians, which will now

be skewed towards retail products. At the same time, India compares pretty

poorly with the other economies of the world that are now becoming comparable

in terms of spending patterns with the opening up of our economy. For instance,

while the total outstanding retail loans in Taiwan is around 41% of GDP, the

figure in India stands at less than 5%. The comparison with the West is even

more staggering. Another comparison that is natural when comparing retail

sectors is the use of credit cards. Here also, the potential lies in the fact that of all

the consumer expenditure in India in 2008, less than 2% was through plastic, the

corresponding US figure standing at 18%. Hence, there is vast scope for

expanding retail banking in India.

Retail segment in India has been booming of late due to high liquidity, changing

demographic profile, falling interest rates and increasing demand for consumer

finances. The annual growth in bank credit to the commercial sector is at 25.4%

as on March 31, 2008 and was lower than 27.2% against previous year. Till 2011,

retail banking is expected to grow at a CAGR of 28% to touch a figure of Rs.

9,700 billion. This requires expansion and diversification of retail product portfolio,

better penetration and faster service mechanism.

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1.2 STATEMENT OF THE PROBLEM

What is the overall effectiveness of the Bank in performing its retail banking

activities?

What are the strengths and weaknesses of the Bank while providing retail

banking services?

What are the future expansion opportunities and threats posed by other

Banks?

Reviewing the progress of the Bank towards goals and objectives.

Whether the products offered by the Bank are effective enough to cater to

the needs of the customers?

Whether the customers have easy access to the Bank’s services?

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1.3 NEED AND IMPORTANCE OF THE STUDY

Need of the study:

To suit the needs of each customer group like the salaried people,

labourers, pensioners, housewives, students, technocrats, professionals,

traders etc.

To change the outlook of people towards banking.

To build a strong customer base.

To provide personalized services to the customers.

To increase the credit growth of the Bank.

To provide a framework for effective Customer Relationship Management.

Importance of the study:

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1.4 OBJECTIVES OF THE STUDY

o To evaluate the retail banking services offered by Syndicate Bank.

o Innovation and development of the services offered by the Bank to

enhance its existing services.

o To analyze the impact of the retail products over the profitability of

the Bank.

o To provide anytime, anywhere access of the retail banking services

to the customers.

o To reduce the operational costs of the Bank.

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CHAPTER 2

RESEARCH METHODOLOGY

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2.1 TYPE OF RESEARCH

Research is a systematic and objective identification collection, analysis,

dissemination and use of information for the purpose of improving decision

making related to the identification and solution of a problem. Business research

is a systematic inquiry that provides information to guide business decisions. This

includes reporting, descriptive, explanatory and predictive studies.

The research design adopted for this study is descriptive research design.

Descriptive study is a fact-finding investigation with adequate interpretation.

For this study, information was gathered from various sources like internet,

textbooks, magazine, newspapers, and questionnaires.

2.2 SAMPLING TECHNIQUE

Sampling is the process of selecting units (e.g., people, organizations) from a

population of interest so that by studying the sample we may fairly generalize our

results back to the population from which they were chosen. Sample design is

about choosing how many elements (businesses, people etc) to include in a

survey in order to provide a good basis for measuring economic and social

phenomena. Sample design allows researchers to get estimates from a

population so large that every member cannot be interviewed.

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There are two types of sampling techniques:

Probability Sampling : This technique is based on the theory of

probability. Here, every element of the population has an equal chance of

being selected in the sample.

Non-Probability Sampling : This technique is not based on the theory of

probability. It does not provide an equal chance of selection to each

population element.

The technique used in this study is the simple random sampling. This

sampling technique gives each element an equal an independent chance of

being selected. An equal chance means equal probability of selection, e.g., in

a population of 300, each element theoretically has 1/300 th chance of being

selected. An independent chance means that the draw of one element will not

affect the chances of other elements being selected.

2.3 SAMPLE SIZE

Sample is a unit that represents the characteristics of a target population.

For this study, the sample size will consist of 100 respondents. The

respondents will be the customers of the company.

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2.4 SAMPLE DESCRIPTION

For this study, the universal sample comprised of 100 respondents. The

respondents consisted of both men and women from different stratas of the

society. The customers of the Bank range from rich businessmen to the

underprivileged farmers. The customers include both the self employed as well

as salaried people. For constructing this sample, 100 customers of the Bank were

selected randomly and interviewed. The sample consists of respondents with

different age, qualification, income group and needs.

2.5 INSTRUMENTATION TECHNIQUE

The instrumentation technique used for this study consists of questionnaires. A

questionnaire is a schedule consisting of a number of coherent questions related

to the various aspects of the topic under study. Questionnaires are a popular and

convenient means of collecting data. For this study, questionnaires include

suitable combination of rating scale, ranking scale, open and closed ended

questions.

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2.6 ACTUAL COLLECTION OF DATA

a) Primary data – Data collected directly, fresh and raw are known to be as

primary data. The primary data will be collected from the customers of the Bank

through questionnaires.

b) Secondary data –Secondary data are the data which have already been used

for some other purposes and are collected from the company. The secondary

data are the data based on second-hand information. It is the data which have

already been collected, compiled and presented earlier by any agency. Thus data

collected indirectly and from the past records are known as secondary data. The

secondary data would be collected from the records of the Bank, loan

compendium, internet, RBI journals, books, newspapers, trade journals and

various management books.

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2.7 LIMITATIONS OF THE STUDY

Though the present study aims to achieve the above mentioned objectives in full

earnest and accuracy, yet certain limitations have hampered the work. The

limitations are:-

o The study is limited only to SYNDICATE BANK in Bangalore.

o Time is a major constraint.

o Sample size is also limited.

o Getting accurate responses from the respondents due to their

inherent problems, like, they may be partial or refuse to cooperate.

o Respondents may have to be contacted repeatedly, else alternate

respondent may have to be identified, which proves to be

cumbersome.

o Concentration on the retail banking aspects of the Bank only.

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CHAPTER 3

PROFILES

Alpa Dixit


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3.1 INDUSTRY PROFILE

Banks in India have played a significant role in the development of the Indian

economy. Commercial banks in India have traditionally focused on meeting the

short-term financial needs of industry, trade and agriculture. Dominated by public

sector, the banking industry has so far acted as an efficient partner in growth and

the development of the country. Driven by socialist ideologies and the welfare

state concept, public sector banks have long been the supporters of agriculture

and other priority sectors. They act as crucial channels of the government in its

efforts to ensure equitable economic development. At present, there are 286

scheduled commercial banks in the country, with a network of 67,742 branches.

Scheduled commercial banks are the ones that are listed in the second schedule

to the RBI Act and may further be classified as public sector banks, private sector

banks and foreign banks. Scheduled commercial banks have a presence

throughout India, with nearly 69.72% of bank branches located in rural or semi-

urban areas of the country. A large number of these branches belong to the

public sector banks.

Public sector banks make up the largest category of banks in the Indian banking

system. There are 27 public sector banks in India. They include the SBI and its

associate banks and 19 nationalized banks. Nationalized banks are governed by

the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 and

1980. The banks nationalized under the Banking Companies (Acquisition and

Transfer of Undertakings) Act 1970 and 1980 are referred to as ‘corresponding

new banks’. Syndicate Bank is a corresponding new bank, nationalized in 1969

under the Bank Acquisition Act.

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Since the nationalization of banks in 1969, the public sector banks or the

nationalized banks have acquired a place of prominence and have since then

had seen tremendous progress. The need to become highly customer focused

has forced the slow-moving public sector banks to adopt a fast track approach.

The unleashing of products and services through the net has galvanized players

at all levels of the banking and financial institutions market grid to look anew at

their existing portfolio offering.

Public sector banks operate in the remotest possible areas of the country and

give employment opportunity to one and all. As a contrast to their private sector

counterparts, technological up gradation is still in infancy in public sector banks.

The most astonishing feature of the public sector banks is that many employees

are not computer literate and the personnel’s average age is 40+. These banks

are also subject to limited government interference. But the last decade has

seen many positive developments in the Indian banking sector. These banks

have finally worked up to the competitive dynamics of the ‘new’ Indian market

and are addressing the relevant issues to take on the multifarious challenges of

globalization. The Internet has emerged as the new and challenging frontier of

marketing with the conventional physical world tenets being just as applicable

like in any other marketing medium.

The policy makers, which comprise the Reserve Bank of India (RBI), Ministry of

Finance and related government and financial sector regulatory entities, have

made several notable efforts to improve regulation in the Indian banking sector.

Though these banks have established an outstanding track record of innovation,

growth and value creation, however, improved regulations, innovation, growth

and value creation in the sector remain limited to a small part of it especially

private sector banks. India’s banking industry must strengthen itself significantly if

it has to support the modern and vibrant economy which India aspires to be.

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While the onus for this change lies mainly with bank managements, an enabling

policy and regulatory framework will also be critical to their success.

The banking sector reforms undertaken in India from 1992 onwards were

basically aimed at ensuring the safety and soundness of financial institutions and

at the same time at making the banking system strong, efficient, functionally

diverse and competitive. The reforms included measures for arresting the decline

in productivity, efficiency and profitability of the banking sector. Furthermore, it

was recognized that the Indian banking system should be in tune with

international standards of capital adequacy, prudential regulations, and

accounting and disclosure standards. Financial soundness and consistent

supervisory practices, as evident in its level of compliance with the Basel

Committees Core Principles for Effective Banking Supervision, have made the

banking system resilient to global shocks.

The financial sector reforms have provided the necessary platform for the

banking sector to operate on the basis of operational flexibility and functional

autonomy, thereby enhancing efficiency, productivity and profitability. The

reforms also brought about structural changes in the financial sector and

succeeded in easing external constraints on its operation, introducing

transparency in reporting procedures, restructuring and recapitalizing banks and

enhancing the competitive element in the market through the entry of new banks.

The ongoing revolution in information and communication technology has,

however, largely bypassed the Indian banking system given the low initial level of

automation. The competitive environment created by financial sector reforms has

nonetheless compelled the banks to gradually adopt modern technology, albeit to

a limited extent, to maintain their market share.

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Indian banks have compared favourably on growth, asset quality and profitability

with other regional banks over the last few years. While bank lending has been a

significant driver of GDP growth and employment, periodic instances of the

“failure” of some weak banks have often threatened the stability of the system.

But nonetheless, the banking sector is the fastest growing and the most

flourishing sector in the Indian economy. Nonetheless, these banks should strive

to penetrate the untapped areas of the market too to overshadow the downward

trend in this sector.

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3.2 COMPANY PROFILE

“The difference between a successful person and others is not the lack of strength or knowledge, but rather lack of will”

Syndicate Bank is one of the oldest and major commercial banks of India and

was established in 1925 in Udupi, Karnataka. It was originally known as Canara

Industrial and Banking Syndicate Limited but was renamed as Syndicate Bank

Limited with effect from Jan 1, 1964 and was later nationalized in 1969. It was

started 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.

The business started with a capital of Rs. 8000.

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 extend

financial assistance to the local weavers who were crippled by a crisis in the

handloom industry through mobilizing 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.

As time progressed, twenty banks merged with the Canara Industrial and

Banking Syndicate Limited including the Maharashtra 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. Syndicate Bank sponsored the first regional rural bank in India

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http://en.wikipedia.org/wiki/Dakshin_Kannada

http://en.wikipedia.org/wiki/Manipal

http://en.wikipedia.org/wiki/Mumbai

http://en.wikipedia.org/wiki/Clearing_house_(finance)

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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. Syndicate bank made a partnership

with UNEP to initiate a successful solar loan programme. It was a four-year $7.6

million effort, launched in April 2003 to help accelerate the market for financing

solar home systems in southern India. Recently, Syndicate Bank has achieved a

rare feat of opening one million customer accounts in a span of 3 months. Shri

George Joseph took over as the CMD of the Bank on 2 August 2008. His term is

to expire on 30 April 2009.

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 rural India and understanding the grass

root realities, the Bank's perception had vision of future India. Its progress has

been abreast of the phase of progressive banking in 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.

Syndicate Bank today is placed in the league of large and leading public sector

banks in India. The bank is a pioneer in introducing several initiatives such as

agricultural financing and door-to-door banking, which are now recognized as

benchmark by the industry. The bank offers wide gamut of services including

deposits, corporate and retail loans, cash management, foreign trade services,

cards, insurance. The Bank has also expanded its ATM network to 1000, spread

Alpa Dixit


http://en.wikipedia.org/wiki/2009

http://en.wikipedia.org/wiki/April_30

http://en.wikipedia.org/wiki/2008

http://en.wikipedia.org/wiki/August_2

http://en.wikipedia.org/wiki/George_Joseph_(banker)

http://en.wikipedia.org/wiki/Solar_power_in_India

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across 519 centers. The Bank is also a founder member of the “CashTree”

consortium of 12 Banks with total number of ATMs under the network to over

4500. Bank has launched mobile phone banking facility too whereby, enquiries

(pull services) through SMS on balance outstanding, change of primary account,

term deposit details, cheque issued status, stop payment request, viewing last 5

transactions and alerts (push services) through SMS regarding credit/debit,

balance and overdrafts are available to the customers at free of cost. The facility

for online requests for credit is extended to educational loans, SME loans, loans

to professional & self employed persons, loans for traders, farm loans, housing

loans etc.

The popularity of these banks can be gauged by the fact that in a short span of

time, these banks have gained considerable customer confidence and

consequently have shown impressive growth rates. The bank has made steady

progress over the years and has had a consistent performance throughout. The

bank has a large network of 2,125 branches in India with overseas presence in

London and boasts of a workforce of over 26000 employees. In addition, it has

been managing exchange companies in the Middle East to channelize remittance

from expatriates to India. The Bank has rapidly expanded the ATM network

considering the fact that ATMs have become the most acceptable delivery

channels. As at the end of January 2009 the Bank has got a network of 1051

ATMs spread across 543 centres. The Bank is a member of VISA International,

which extends the usage reach of our ATM/Debit Card holders to over 28700

ATMs in the country and over 1.2 million ATMs across the globe. The

cardholders can also transact at Member Establishments (MEs) numbering over

3.5 lakhs in the country and over 2.84 crores across the globe.

The Bank is one of the first banks to launch Centralised Banking Solution (CBS)

and presently, all of its branches are in the CBS fold. The robust technological

advancement made by the bank is aimed at providing banking service to all the

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sections of the society besides using it as a management tool.

The IT initiatives of the Bank have been amply recognized and rewarded both

nationally and globally, which can be seen from the following awards won by the

Bank during the past year.

1. Best use of IT for customer service in Semi-urban and Rural areas by

IDRBT, Hyderabad.

2. Best Core Banking Project among Large Banks in Asia Pacific Region –

The Asian Banker IT Implementation Awards

3. The Asian banker IT implementation AWARD 08 for best core banking

project for large banks

The bank has been performing exceptionally well over the years. It is continually

striving for the social and economic development of the country. Syndicate bank

has won accolades for its service in rural communities and achieving exemplary

customer service is an ongoing priority for the bank. The Bank’s thrust on priority

and agriculture sector continued and the outstanding amount under priority

Sector increased from Rs.18513 crore as on 31st March 2008 to Rs.21841 crore

achieving a growth of 18.44%. The priority sector advances formed 46.60% of

the Adjusted Net Bank Credit (ANBC) as against the mandatory 40%.

The bank also fulfills its Corporate Social Responsibility well. As an indication of

Bank’s social commitment towards water conservation and support to farming

community in rural areas both towards drinking water and farming necessities,

along with its sponsored Regional Rural Banks, the Bank completed cleaning of

601 ponds across the country during the year 2007-08.The bank is known for its

customer friendly approach. The bank is committed to providing high quality

customer service and timely redressal of customer grievance. However,

competition is fierce, particularly from local private banks such as HDFC and

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ICICI, in the business of home, car and consumer loans.

Regarding agricultural banking, he said Reserve Bank of India’s monetary

tightening policies will have no impact because the productive sectors should in

no way be affected by liquidity tightening measures. Syndicate Bank is projecting

a growth of 28 percent in agricultural lending mostly in plantation, rice, sugar

cane, tobacco, warehouse receipts, minor irrigation schemes and through the

traditional kisan credit cards. Syndicate Bank, despite the difficult macroeconomic

situation in the country, is hopeful of a business growth of 18 percent in loans and

deposits for 2008-09. The projected total income is Rs 1,90,000 crore from the

present level of Rs 1,60,000 crore.

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3.3 PRODUCT PROFILE

The Bank has been keeping a close watch on the market dynamics and

introduction of new products and services are tailored and customized to suit the

customers' requirements. During the year 2007-08, the Bank has launched

innovative new products and services such as SyndSmallCredit (financial

assistance to entrepreneurs of small means), SyndSona (sale of gold coins),

SyndSuraksha (a unique Life Insurance cover for Savings Bank Account

Holders), SyndFlexi Current account schemes, etc. The bank has launched

various products since its inception to cater to its customers needs. These

products are :

A.A. PARA BANKING ACTIVITIESPARA BANKING ACTIVITIES : This activity includes the following :

1. Syndicate Bank Global Debit Card : A convenient e-wallet valid in

India and abroad with VISA Power. It brings the convenience of accessing

money any time and from anywhere across the world. The customer can

transact in any currency, but has to pay in Indian Rupees. The card is

offered free of fee for all eligible accounts with any of Syndicat-e-banking

(CBS) branches and select non-CBS branches of the Bank. Over 16,000

ATMs in India and over 10,00,000 (ten lakhs) ATMs across the globe with

VISA logo would honour the card round the clock for cash withdrawal and

balance enquiry. There is 24 hrs access to withdraw cash from all ATMs of

Syndicate Bank and all ATMs displaying Cash Tree Logo in India. It

enables shopping, dining and purchases at over 1,88,000 merchant

establishments (MEs) in India and over 24 Million MEs across the globe

displaying VISA logo. There is no admission fee and no annual fee

presently. Moreover there is no transaction fee at all Syndicate Bank

ATMs too.

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FEATURES OF THE CARD:

a. Global Debit Card is issued in association with VISA.

b. Acceptance at following locations-

Table : 3 Features of Syndicate Bank Debit Card

LOCATIONLOGO PURPOSE

All ATMs of

SyndicateBank

For Cash Withdrawal, Balance

Enquiry, Mini Statement &

Change of PIN through over 350

ATMs

Other Banks’ ATMs

displaying

VISA Logo

For Cash Withdrawal & Balance

Enquiry through over 16,000

ATMs in India and over 10 lakh

ATMs globally

Merchant

Establishments

Displaying VISA

Logo

For purchases through over 1.88

lakh MEs in India and over 24

million MEs globally

All ‘CashTree’ ATMs For Cash Withdrawal & Balance

Enquiry through over 2,000

ATMs

Table 4 : Details of the Debit Card

S

No

Type of Transaction CARDS ISSUED BY CBS BRANCHES

CARDS ISSUED BY NON-CBS

BRANCHESValue in Indian Rupee or equivalent Foreign

CurrencyA Minimum Value of any Rs.100/- Rs.100/-

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transaction at ATM or POS (Rs. one hundred only) (Rs. one hundred only)B Maximum Value per

transaction at ATM or POSRs.10,000/-

(Rs. ten thousand only)Rs.5,000/-

(Rs. five thousand only)

C Maximum Value of on-line transactions per day at ATM or POS or both put together

Rs.25,000/-(Rupees twenty five

thousand only)

Rs.15,000/-(Rupees fifteen thousand only)

D Number of transactions permitted per day

No restriction No restriction

E Maximum permissible value of off-line transaction

Rs.10,000/-(Rs ten thousand only)

Rs.5,000/-(Rs five thousand only)

2. Syndicate Bank Global Credit Cards : It is a photo / signature card

that provides additional security and recognition to the user. It gives the

power for making payment with the card at all the Merchant

Establishments (MEs) in India and abroad where VISA cards are

accepted. The customers have the access to withdraw cash at all ATMs of

Syndicate Bank and at all ATMs displaying cash tree logo in India round

the clock. The minimum income requirement for issue of credit card is Rs.

60000/- p.a. The free credit period is of minimum 20 days and maximum

50 days. There is cash withdrawal facility (15% for classic cards & 25% for

gold cards) through Syndicate Bank ATMs at concessional charges. There

are also reward points of one point for every Rs. 200 spend with the card.

There is revolving credit facility with minimum payment of 10% of total

payment due with these cards. Cardholder’s lost card liability is limited to

Rs.1,000/- after notifying loss to Bank. Cards are issued for three years

but renewal fee is levied every year in advance in the anniversary month

of issue, wherever applicable. Cards are being issued through all the

branches of Syndicate Bank across the country. There are two types of

cards :

a. Cards are issued in two variants (Classic Card & Gold Card) with

Photo & Signature of the Cardholder.

b. Add-ons to immediate family members, who are not minor.

The features of these cards are :

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a. Global Credit Card is issued in association with VISA.

b. Acceptance at following locations-

Table 5 : Purpose and locations of credit cards

Purpose Locations

Cash

Withdrawal

All ATMs of Syndicate Bank (over 1040), ATMs under ‘CashTree’

network (over 4400) and ATMs displaying VISA logo (over 28,000 in

India & over 12 Lakh across the Globe)

Purchases All Merchant Establishments accepting VISA Cards (over 3.50 Lakhs

in India & over 28 million across the Globe)

Others Internet, Mail Orders & Telemarketing

B. BANCASSURANCE:B. BANCASSURANCE: The bank can be used as a one stop financial shop

to enhance customer satisfaction is distributing Life and Non Life Insurance

products. The commission earned under life and non-life insurance business was

Rs.23 crore and Rs.3.71 crore respectively. It includes :

1. Life Insurance Products : The bank has tied up with M/s. Bajaj

Allianz Life Insurance Co. Ltd., for distribution of their life insurance

products. It offers a range of products as follows, at competitive

premium - saving life cover, risk cover loan, cover long term

investment.

2. Non Life Insurance : To consolidate the business under

Bancassurance Scheme and to provide additional products to the

customers, the Bank has entered into distribution of Non-Life

Insurance Products by tying up with M/s. United India Insurance Co.

Ltd. Bank has obtained IRDA licence to act as Corporate Insurance

Agent of United India Insurance Co. Ltd. A package policy is

devised covering the asset against fire and allied perils covering

lightning, explosion / implosion, aircraft damage, etc. riot, strike,

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malicious and terrorism damages are covered at extra premium.

The person against death or injury arising out of accident. Any

branch of the Bank may be approached for Bancassurance. Some

of its life-insurance products in association with Bajaj Allianz are :

a. INVESTGAIN

b. CASHGAIN

c. CHILDGAIN

d. RISKCARE

e. TERMCARE

f. LIFETIMECARE

g. SWARNA-VISHRANTI

h. UNITGAIN

i. LOAN PROTECTOR

j. SYNDDRIVER

3. Cash Management (SCMS) : It uses contemporary technology

and has a network coverage of 1400 locations covering length &

breadth of the country. The Bank offers two key products: E-Collect

(Management of Receivables) and E-Pay (Management of

Payables). Value additions like walk-in deposits of cheques/cash,

cheques/cash pick ups, post Dated Cheques, Direct Debit and Drop

Boxes are available in e-collect. Value additions dike debit sweep

zero balance account, direct credit, cash payment (subject to RBI

guidelines), at par cheque drawing, bulk DD are also available in E-

Pay. State of the Art technology sits on 2000–strong branch

network to move cash and information for the customer, offering

him the utmost convenience through anywhere, anytime, phone

banking apart from meeting Cash Management requirements. A

customer need not be an account holder to avail the facility.

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http://www.syndicatebank.com/downloads/cmsdirectdebit.doc

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C. DEPOSIT SCHEMES :DEPOSIT SCHEMES :

1. Synd 400 Plus and Synd 500 Plus : Individuals / Firms /

Companies / Trust etc., who are eligible to open an account with the

Bank are eligible to avail this scheme by depositing Rs.1,000/- in a

single deposit account.

2. Savings Deposit Account : It is an account with easy liquidity.

Withdrawal can be done through withdrawal slips/cheques/ATM Cards.

Students can operate the A/c. Interest is given on minimum balance

between 10th & last day of month. Minimum average monthly balance

of Rs.10,000/- should be maintained. In this account, balance in excess

of Rs.10,000/- gets swept out into fixed deposit for 180 days in units of

Rs.1000/- and when there is need for funds in Savings Account, the

fixed deposit is broken prematurely without any penalty in units of

Rs.1000/- and swept into the savings account to the extent of meeting

the need.

3. Special Premium Savings Accounts (CBS branches only) : It

gives high earnings with easy liquidity. Minimum average monthly

balance of Rs.20,000/- should be maintained in this account. Balance

in excess of Rs.20,000/- gets swept out into fixed deposit in units of

Rs.1000/- for 1 yr. 1 day. As and when there is need for funds in

Savings Account, the fixed deposit is broken prematurely without any

penalty in units of Rs.1000/- and swept into the savings account to the

extent of meeting the need.

4. Fixed Deposit Scheme : It is a regular interest earning scheme.

Period of Deposit is 15 days to 120 months (minimum period is 7 days

for deposits of Rs.25.00 lakhs & above).Minimum Deposit of Rs.1000/-

should be maintained.

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5. Vikas Cash Certificate : It is a money multiplier scheme. Minimum

amount of Deposit – Rs.100/- and in multiples of Rs.100/- should be

maintained. It is for a period of deposit is 6 months to 120 months.

Interest is compounded every quarter.

6. Social Security Deposit : : It is an ideal monthly / quarterly income

plan. Minimum deposit of Rs.1000/- and in multiples of Rs.100/- should

be maintained. It is for a period of 1 year to 10 years in completed

quarters. Monthly interest at discounted value or interest accruing at

the end of quarter will be paid.

7. Senior Citizen’s Security Deposit : It is a scheme with higher

income for senior citizens(above the age of 60 years).The amount of

deposit is Rs.1000/- and in multiples of Rs.1000/-.It is for a Period of 12

months to 120 months. The rate of interest is 1% + normal applicable

rate to term deposits. Incentives – No penalty for premature closure. At

par remittance facility upto Rs.5000/- per month or upto interest earned

on his deposit whichever is higher.

8. Syndicate Suvidha Deposit : : It gives Fixed Deposit with partial

withdrawals. Amount of deposit is Rs.10,000/- and above in multiples

of Rs.1000/-.The period of deposit is 15 days to 120 months. Rate of

interest – As applicable to term deposits. Interest – Simple interest at

quarterly intervals. Partial withdrawal in multiples of Rs.1000/- allowed.

There is no restriction on the frequency of withdrawals. Moreover, no

penalty will be charged in case of partial withdrawals.

9. Cumulative SyndTaxShield Deposit Scheme : It is an ideal

scheme for monthly savings. Uniform monthly installments of minimum

Rs.100/- and thereafter in multiples of Rs.10/-.Period of deposit is 12 Alpa Dixit


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months to 120 months. No penalty if installment is delayed but paid

during same calendar month. Nominal penalty if installment delayed

beyond calendar month. Penalty may be set off against payment of

equal number of advance installments. TDS on interest not applicable

10. Pigmy Deposit : It is a daily savings scheme at the customers

doorsteps. Minimum amount of deposit is Re. 5/-.The amount may be

deposited daily/weekly/monthly. Period of Deposit is 63 months.

Premature withdrawal permitted with certain conditions. Authorised

Agent i.e. “Pigmy Agent’ collects money for deposit into Pigmy Deposit

A/c at your doorsteps. TDS on interest not applicable.

11. Super Premium Savings Bank Account : : It cultivates savings

to Personal Accident Cover with added advantages. It is suitable for

customers, habitual of maintaining high average balance in SB

accounts, young executives and professionals from higher income

group. All SB account holders whose SB account has a monthly

minimum average balance of Rs.1.00 lakh are eligible for it. There is

issue of Credit Cards free of costs at entry level Priority allotment of

Lockers based on availability. There is Sweep in-Sweep out facility at

all CBS branches.

12. Synd Samanya Savings Bank Account (No Frills Account :

All Individual/s are eligible for it. Minimum Balance is nil. It is a zero-

balance account. Rate of Interest is 3.5% (at present). Cheque book

will be made available if balance is maintained as per the existing SB

account norms. Service charge of Rs.10/- per transaction shall be

levied if the customer exceeds the stipulated number of transactions in

his account. The number of cash withdrawals are 50 per year at

branch counter while there is no restrictions for ATM transactions.

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13. SyndFlexi Current Account : It combines the liquidity of Current

Account with the earning capacity of Term Deposits. The account is

available at CBS Branches and provides for Sweep-out Sweep-in

Facility. Amounts in excess of the prescribed threshold amount of Rs.

1.00 lakh is automatically swept out to Term Deposit and funds from

the Term Deposit is Swept in to the Flexi Current Account as and when

there is a shortfall in the balance in the account. The tenure of this

account is between 15 to 45 days as the customer may specify (one

time option).

14.Synd Corporate Suvidha Deposit Scheme : It is a Term Deposit

for larger depositors with partial withdrawals. Minimum deposit amount

will be Rs.5.00 crores and in multiples of Rs.1.00 crore. Premature

withdrawal of partial deposit in multiples of Rs.1.00 crore is allowed,

without charging penal interest with minimum notice period of one day.

A minimum balance of Rs.5.00 crores should be retained after such

partial withdrawal. Period of deposit is 7 days to180 days.

15. SyndTaxShield Deposit Scheme : Individuals / HUF eligible to

open an account with the Bank are eligible for this scheme. Minimum

Deposit is of Rs. 100/- and multiples of thereof and maximum Deposits

of Rs. 1,00,000/- per person per annum. It should be taken for a

minimum of 5 Years. No premature withdrawal facility is available upto

5 years from the date of deposit. Deposits Account may be opened

under Single / Joint holder type of Accounts. Term Deposits under this

scheme are not eligible for pledge to secure loan or as security to any

other asset. Interest Income from these term deposits shall be liable to

tax under the IT Act.

16. Exchange Earner’s Foreign Currency A/c – Current A/c:

EEFC current a/c can be opened by any exporters and recipients of Alpa Dixit


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inward remittance in any convertible currency. EEFC may be

maintained in USD, GBP, EURO, AUD and CAD. The minimum

balance to be maintained in CA is USD1000/- GBP 500/- and EURO

1000/-These accounts may be maintained at the designated branches.

We are having 93 designated branches all over India. Exporters and

others if they want to retain export earnings in EEFC a/c, they can do

so upto 100%.Funds held in the a/cs can also be freely converted in to

Indian Rupees. No credit facilities, fund based as well as non fund

based, are permitted against the security of balances held in EEFC

accounts.

Table 6 : Rates of Interest for Deposit Account

NATURE RATE OF INTEREST MINIMUM BALANCE

NORMAL SENIOR

CITIZEN

Rural Semi Urban Urban

ACCOUNT

1. Savings Bank A/c

A. Domestic

a. With cheque

book facility

3.5% 3.5% Rs.500/- Rs.500/- Rs.1000/-

b. Without cheque

book facility

3.5% 3.5% Rs.100/- Rs.100/- Rs. 500/-

c. No Frills

Account

With cheque

book facility

Without

cheque book

facility

3.5%

3.5%

3.5%

3.5%

Rs.500/-

Nil

Rs.500/-

Nil

Rs.500/-

Nil

B. Non Resident

a. NRO 3.5% 3.5 Rs.500/- Rs.500/- Rs.1000/-

b. NRE 3.5% 3.5% Rs.500/- Rs.500/- Rs.1000/-

2. Term Deposits

A. Domestic For Deposits less than Rs. 1.00 crore

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Rate of Interest w.e.f. 16.02.2009Term Deposits (All Maturities)

7 days & upto 14 days (applicable for

deposits of Rs. 25 lakhs & above)

3.25

15 days to 29 days 3.75







271 days to < 1 year 7.50

1 year to 499 days 8.00

500 days exact 8.25

501 days to < 2 years 8.00

2 years to < 3 yrs 8.00

3 years to < 5 yrs 8.00

5 years & above 7.75

2. Term Deposits

B. Domestic For BULK Deposits of Rs. 1.00 Crore and

above

Rate of Interest w.e.f. 12.01.2009

Term Deposits (All Maturities)

7 days & upto 14 days 3.75







1 year and above 7.50

a. NRO (All Maturities)

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b. NRE w.e.f 01.04.2009

1 yr. & above

but less than 2 years

3.72

2 yrs & above

but less than 3 years

3.15

3 yrs and above upto 5 years 3.45

Rate of Interest w.e.f. 01.04.2009

1 year &

above but <

2 years

2 years &

above but

< 3 years

3 years &

above but

< 4 years

4 years &

above but

< 5 years

For 5 years

(Maximum)

c. FCNR(B)

i) USD 2.97 2.40 2.70 2.99 3.23

ii) GBP

(1 yr 1day)

3.07

iii) EUR

(1 yr 1day) 2.83

iv) CAD

(1 yr 1day)

2.

98

v) AUD

(1 yr 1day)

4.9

2

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4. SYND BANK SERVICES (BPO):SYND BANK SERVICES (BPO): It is a wholly owned

subsidiary of Syndicate Bank. This is a first BPO outfit of a

Nationalized Bank. This BPO Company is proposed to undertake

the following activities facilitating customers to file their income tax

returns, undertaking Back Office functions relating to Bank's debit /

credit card / bancassurance business etc.

5.5. LOAN PRODUCTS :LOAN PRODUCTS :

1. SyndRent : Its purpose is to meet urgent personal expenses/credit

needs. Bonafide owners of residential / commercial property are eligible

for it. The quantum is 75% of the rental value. The repayment period

should not exceed 60 months. Third party guarantee acceptable to the

bank. Its requirements are Mortgage of property, Lease agreement,

Consent from the lessee (tenant).

2. SyndSaral: Its Purpose is to meet urgent personal credit requirements.

Permanent employees of Central / State Government Offices /

Undertakings / reputed companies / firms / educational institutions. Non-

salaried class like Doctors / Engineers / Lawyers / Chartered Accountants /

Architects / Consultants and Pensioners are eligible for it. The repayment

criteria is maximum 60 months in case of loans and overdraft against

Govt. securities. to be renewed once in 2 years. Its requirements are

Salary Certificate / letter of undertaking from the employer, ITAO for non-

salaried class / property documents where ITAO is not available, Third

party guarantee acceptable to the bank, valid mortgage of immovable

property/ pledge of securities, Post dated cheques in exceptional cases.

3. SyndSenior: An exclusive personal loan scheme for pensioners. It can

be used for any bonafide personal / business credit requirement.

Pensioners in receipt of regular monthly pension from Central / State

Governments / Public Sector Units / Defence Establishments and other

government or quasi government institutions whose pensions are being

routed through accounts held with it. Surety need not be insisted for loans

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upto 6 months gross monthly pension or Rs.50000/- whichever is lower, in

all other cases the surety of a family member or that of a third party shall

be obtained. The surety should have adequate means / income.

4. SyndVidyarthi: A Standby Overdraft facility for students of professional

courses. To meet the recurring expenses of contingent nature that may

have to be incurred by students pursuing professional courses. The

eligibility criteria includes Students of 18 years and above of age pursuing

professional courses. All professional and management courses listed in

our educational loan scheme would be eligible for coverage. Coverage

under this scheme can be provided to all eligible students irrespective of

whether or not they have availed an Education Loan from our Bank / other

banks. The quantum should Not exceed Rs.10000/-.Overdraft subject to

renewal every year.

5. SyndNivas: Housing Loan Scheme. It is given for

construction/acquisition of a house/flat or for acquiring a site and building a

house thereon, For acquiring a new house or existing house not more than

25 years old, For making extensions/additions to existing house. For NRIs,

loan available for acquisition of house for self-occupation on return to

India, For acquisition of furniture/fixtures including air conditioners,

geysers, fridge, cots, tables, sofas etc which form part of improvements to

the home purchased or constructed out of the Housing Loan. The margin

is 25% of total project cost for construction/purchase of new flat or house

upto 5 years old, 30% for acquiring house which is above 5 years old,30%

of the estimated cost of addition/extension/repairs/renovation. The security

is First mortgage of the site/house/flat to be constructed/acquired or as

advised by the Legal Adviser/Law Officer of the Bank, Hypothecation of

furniture & fixtures. The processing charges are Rs.500/- per lac with a

minimum of Rs.1000/- at present. (Processing charges are subject to

change from time to time).

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6. SyndNivasPlus: Its purpose is to meet any genuine personal or

business credit requirement. Housing Loan customers who have

demonstrated a satisfactory repayment record of 2 years or more are

eligible for it. The loan shall be offered on a pre-approved basis to all

eligible customers. This pre approved offer shall be valid for a period of 3

months from the date of communication of the sanction. If a customer

approaches after the lapse of 3 months his request may be considered

under the scheme after a fresh assessment of the eligible quantum and

fulfillment of all applicable norms. The security is the extension of charge

for the loan value on the mortgage of the residential property created

already towards Housing Loan.

7. SyndPigmy: It purpose is to meet any contingent requirement of pigmy

depositors. Pigmy depositors with regular contribution for 24 months are

eligible for it. The quantum is 3 times pigmy deposit balance with

maximum Rs. 50000/-. Repayment is 35 months for loans and overdrafts

renewable on yearly basis. Rate of interest is 12.50% p.a. (fixed). The

pigmy deposit forms the security with a Margin of 25%.It requires third

party guarantee for the amount beyond pigmy balance. Contributions to

Pigmy Deposit should be continued.

8. SyndKisan: Its purpose to meet urgent personal needs / purchase

consumer durables like TV, Fridge, Washing Machine, Audio / Video

Equipment etc. Agriculturists are eligible for it. The quantum is 50% of

average gross annual income or Rs. 1 lakh whichever is less for clean

loans. 80% of the consumer durable or 50% of annual income or 0.50 lakh

whichever is less. The repayment period should not exceed 3 years. The

requirements proof of income and third party guarantee acceptance.

9. SyndVahan: Its purpose to help customers buy new / second hand 4-

wheeler or new 2-wheeler.Persons having minimum annual income of Rs.

1 lakh for 4 wheeler and Rs.50000/- for 2 wheeler are eligible for it. The

repayment period is 72 / 48 months for new/old 4 wheelers and 60 months

for new 2 wheelers. The requirements are salary certificate, ITAO for non-

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salaried class/property documents where ITAO is not available, Performa

invoice. Third party guarantee acceptable to the bank.

10. SyndLaghuUdyami: It is a credit card scheme to meet credit

requirement of small/medium entrepreneurs, traders, small business, self-

employers/ professionals. Existing customers who satisfy certain criteria

are eligible for it. The quantum of loan is maximum of Rs.5 lac (upto Rs.10

lacs for customers with good track record).The margin is 15% to 40%,

depending upon the security. Suitable third party guarantee acceptable to

the Bank.

11. SyndMahila: The following are eligible for it all working or non-

working women with an identified source of income or savings, age

between 20 to 50 years, for employed women, salary to be routed through

a/c with the bank or letter of undertaking from employer for deduction of

EMI, housewives demonstrating regularity in savings for a period of 6

months. The eligible amount under this scheme is minimum Rs.10,000/-

Maximum Rs.1,50,000,10 times the gross monthly salary for employed

women,10 times average monthly balance in Savings Bank during the last

6 months. Any member of the family with adequate income / net worth or

an acceptable third party can be taken as security. For any tangible asset

like gold or consumer durable, 85% of the invoice value will be the loan

component. The repayment should not exceed 84 months with a maximum

of 84 equated Monthly installments.

12. SyndMortgage: Bonafide owners of residential/commercial

property are eligible for it. It helps to purchase house plot approved by

Housing Boards/Development Authority of Town/City or Metro and other

genuine credit requirements. The quantum is 60 months’ gross salary

(clubbing of income from other sources/income of close relatives permitted

for computing the quantum of eligible loan amount) or 5 times of annual

agricultural income subject to maximum of Rs.50 lacs (Rs.25 lacs as

ODMS or Rs.50 lacs as loan).Loan quantum is to be decided as per

repayment capacity. For non-agriculturists/ non-salaried ,the quantum is

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five times of annual income on the basis of ITAO/ average of last 3 years

income as per ITAO ( for loans upto Rs.5 lac, ITAO will not be insisted

upon.).The repayment period is 7 years. Suitable third party guarantee

acceptable to the Bank.

13. SyndPravasi: It is a personal baking scheme for granting rupee

loans to NRI’s. NRI’s who are having operative NRE/ FCNR / NRO

accounts wit the branch at least for a period of 1 year and are regularly

sending inward remittances. It helps to purchase vehicles, consumer

durables like TV, Fridge, Washing Machine, Audio / Video equipment,

computer including printer, software, furniture, other homeapliances to

meet any genuine personal credit requirements. The repayment period

should not exceed 24 EMI’s for loans against security of Jewels / Gold,60

EMI’s in case of vehicle loans,35 EMI’s in respect of all other loans. Good

third party acceptable to the bank. Spouse having independent income or

sufficient net worth can also be taken as guarantor. For jewel loans against

security of gold guarantee may be waived.

14. SyndSmallCredit: A new Scheme for providing financial

assistance to entrepreneurs of small means contributing to ‘Pigmy 1928

and to “ Pigmy Plus 2007”. The scheme aims at entrepreneurs of small

means such as manufacturers, retail traders, professional & self-employed

persons, artisans and those engaged in making handicrafts, village /

cottage industries & other non-farm income generating activities. This

facility available at all our branches where “Pigmy” scheme is in operation,

in clusters of not less than 20 accounts in an area .It does not require any

collateral security, only hypothecation of assets created out of bank loan,

lien on “Pigmy Plus 2007” account and a credit worthy third party

guarantee is needed. It involves easy repayment at the convenience of the

borrowers. The repayment is linked to day to-day contributions towards

“Pigmy” account, at the doorsteps of the customer. Contributions towards

pigmy can be at the convenience of the customer, it is not fixed.

Repayment period is spread over 60 months, with the first 3 months being

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the repayment holiday. The rate of interest is at PLR-0.50% i.e. presently

12.5% p.a. 1.0% rebate in interest for prompt repayment to be provided at

the closure of the account. The Bank collects nominal out of pocket

expenses @ 3% of amount set for transferring from “Pigmy” to the loan

account, which includes payment of 2% commission to pigmy agents.

15. SyndSuvidha : It can be used for purchase of any consumer

durable including computers. Salaried / Non-salaried class persons are

eligible for it. The repayment should not be more than 60 equated monthly

installments. The rate of interest is (compounded monthly) PLR + 2% p.a.

Suitable third party guarantee acceptable to the Bank.

16. SyndUdyog: This scheme is for financing small and medium

entrepreneurs. Target group is manufacturing Units, trading units & service

entities. The following is the eligibility criteria: 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 lacs.

17. SyndVyapar: It helps to meet the credit needs of traders, service

providers & professionals/self-employed. All Traders, Service providers &

Self-employed are eligible for it. The quantum is maximum Rs. 200 lakhs

in the form of overdraft or Term Loan. This scheme is to be renewed once

in 2 years (or) repayable in maximum 60 months in case of Term Loan.

Rate of interest w.e.f. 16.05.2006: 11% to 11.5% depending on collateral

security coverage. The security is mortgage of property/Pledge of

NSC/KVP/LIC/RBI Relief bond and hypothecation of stock in trade. The

requirements for this scheme is financial statements for limits of over Rs.

10 lakhs.

18. SyndJaiKisan: : It is a hassle free multipurpose, composite, long

term farm credit scheme for agriculturists. It simplifies the system of credit

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delivery to the farmers, taking a holistic view on their credit requirement

covering entire gamut of expenditure related to investments on Agriculture,

Contingencies, Consumption and other pressing social obligations. To be

repaid within a maximum period of 7 years based on expected time of

harvesting/ marketing of farm produce. Repayment holiday upto 18

months based on the requirements to be decided on case-to-case basis.

Mortgage/charge creation on agricultural lands having clear title can be

given. During the pendancy of an existing loan under the scheme, no fresh

loans under this scheme shall be sanctioned and all the existing liabilities

shall be regular. If the borrower is agreeable, he may be covered under

Personal Accident Insurance Scheme by collecting the required insurance

premium.

19. SyndShakti: Artisan friendly scheme for extending need based

credit for purchase of power tools. It aims at providing credit for purchase

of power toolkits and need-based working capital to the artisans, enabling

them to upgrade the level of technology and improve their work efficiency.

Apart from need based credit from the Bank, the prospective borrowers

under the scheme will get the additional benefits offered by M/s MICO

BOSCH, such as extended warranty & servicing, free training in using the

power tool kits, special reduced prices for toolkits etc. The following

category of Self-employed persons in the operational area of the branches

are eligible for facility under the scheme: those engaged in the field of

carpentry & wood works, servicing & repair of automobiles, servicing &

repair of electrical equipment, sanitary & plumbing works.

Table 7 : RATE OF INTEREST ON ADVANCES

(Prime Lending Rate (PLR) w.e.f. 17.01.2009 – 12.50% )

STANDARD TABLE SHOWING FLOATING INTEREST RATES (MONTHLY

COMPOUNDING) ON ADVANCES (OTHER THAN EXPORT CREDIT)

I. AgricultureAlpa Dixit


RETAIL BANKING

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(i) Combined harvester, two, three, four wheeler, Tractor loans released on or

after 1.11.2003 :

Size of the credit limit Interest Rate

Upto Rs.50000/- PLR minus 2.50%

Above Rs.50000/- and upto

Rs.2.50 lakhs

PLR minus 2.00%

Above Rs.2.50 lakhs PLR minus 1.00%

Note: For loans released before 1.11.2003, interest rate as per 1(iii) below shall be

charged

(ii) Advances to Farmers’ Service Co-operative Societies :



Above Rs.50000/- upto Rs.2 lakhs PLR minus 2.50%

Above Rs.2 lakhs PLR minus 1.50%

(iii) All other agriculture advances:



Above Rs.50000/- upto Rs.2 lakhs PLR minus 1.00%

Above Rs.2 lacs Spread to be added to PLR

Credit Rating of

Borrower

CR

1

CR

2

CR

3

CR

4

CR5 CR6 NPA

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a. Term loans NA NA 0.0

0

1.0

0

1.50 1.75 2.00

b. Short TL /

Working Capital

NA NA 0.0

0

1.2

5

2.00 2.00 2.00

NA- Not applicable since as per Simple method, there is no provision for CR-1 and

CR-2 rating to agricultural advances. However, wherever “scoring model” is

used, interest rate for CR 01 & CR 02 will be as applicable to CR 03.

II. Micro / Small Enterprises: (Working Capital/Short term advances/term

loans)

Size of Credit limit Micro Enterprises Small Enterprises

(Mfg.Sector) Service (Mfg.Sector) Service

Upto Rs.50000/- PLR -3.50 PLR - 2.00 PLR -3.00 PLR – 1.50

Above Rs.50000/- up to

Rs.2.00 lakhs

PLR -2.00 PLR -2.00 PLR -1.50 PLR – 1.50

Above Rs.2.00 lakhs:

A) MICRO

ENTERPRISES

Credit Rating of Borrower CR01 CR02 CR03 CR04 CR05 CR0

6

Above Rs.2 lacs PLR-1 PLR -

0.75

PLR -0.50 PLR PLR+0.5

0

PLR

+1.0

0

B) SMALL

ENTERPRISES

Credit Rating of Borrower CR01 CR02 CR03 CR04 CR05 CR06

Above Rs.2 lacs PLR- PLR - PLR PLR+ PLR + PLR Alpa Dixit


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0.50 0.25 0.50 1.00 +1.50

III. Medium Enterprises: (Working Capital/Short term advances/term loans)


Upto Rs.2 Lakhs PLR – 0.50

Spread to be added to PLR

Credit Rating of Borrower CR

1

CR

2

CR

3

CR4 CR

5

CR6

Above Rs.2 lacs 0.0

0

0.5

0

1.0

0

1.50 2.0

0

2.50

IV. Finance granted to intermediary agencies for on lending to ultimate

beneficiaries and agencies providing input support :

(As per Cir. No. 230-2000-BC dated 20.12.2000)

Interest Rate

(a) Housing Intermediaries

i) Advances granted on or before 02.05.1999

(unless otherwise advised to charge any

particular interest rate in specific cases)

PLR minus 0.50%

ii) Advances granted on or after 03.05.1999 and

upto 09.11.2000

PLR minus 0.01%

iii) Advances granted on or after 10.11.2000


Credit Rating of the

Borrower

CR

1

CR

2

CR3 CR4 CR5 CR6 NP

A

Working Capital/Short

term advance/term loans

0.0

0

1.0

0

1.50 2.00 2.50 3.00 3.0

0

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(b) Other intermediary agencies

(i) advances granted upto 9.11.2000 PLR minus1.50%

(ii) advances granted on or after 10.11.2000



Borrower

CR

1

CR

2

CR3 CR4 CR5 CR6 NP

A

Working Capital/Short

term advances/term loans

0.0

0

1.0

0

1.50 2.00 2.50 3.00 3.0

0

V. Advances against third party deposits PLR

VI. Inland Bills upto 180 days of less than Rs. 50.00 lacs

backed by LCs of Scheduled BanksPLR

VII. LC paid/ BG paid/ DPG installment paid (inclusive of

overdue interest of 2.00%)PLR+5.00%

VIII. For delayed period of remittance received in respect of bills

under IDBI/SIDBI Bill Re discounting Scheme (including overdue

interest of 2.00%))

PLR+5.00%

IX. Housing Loan Scheme under Floating Interest option (SyndNivas, Farm House

Loans & Golden Jubilee Rural Housing Finance)

For Loan Amount upto Rs. 20 lakhs Interest Rate

a. Repayment period upto 5 years PLR minus 4.00%

b. Repayment period above 5 years and upto 10 years PLR minus 3.50%

c .Repayment period above 10 years and upto 20 years PLR minus 3.25%

d. Repayment period above 20 years and upto 25 years PLR minus 3.00%

For Loan Amount above Rs. 20 lakhs and Interest Rate

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upto Rs.30 lakhs





For Loan Amount above Rs. 30 lakhs Interest Rate





X. SyndNivas Fixed - 12% upto 5 years

- 13% above 5 to 10 years

XI. SyndNivas Plus - PLR

XII. New Housing Loan Scheme:w.e.f.15.12.2008: (Not linked to PLR)

For Loans up to Rs.5.00 lakhs : 8.50%

For Loans above Rs.5.00 lakhs to Rs.20.00 lakhs: 9.25%

XIII. SyndVidya (Education Loans)

Upto Rs. 7.50 lacs PLR minus 2.00%

Above Rs. 7.50 lacs PLR minus 2.50%

XIV. SyndVidyarthi - PLR

XV. SyndSwarna

A) Jewel Loans/OD Interest RateAlpa Dixit


RETAIL BANKING

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i) Upto Rs.50,000/- - PLR minus 3.00%

ii) Rs.50,000/- to Rs.3 lacs - For Agriculture/SSI

- For Others

PLR minus 1.00%

PLR

iii) Above Rs.3 lakhs (applicable

for CR 02)

For Agriculture/SSI

For Others

PLR

PLR+1.00%

B) Jewel Loans/OD (Others) PLR+2.00%

XVI. SyndSwarna Express - PLR +

1.00%

XVII. Personal Banking Scheme Loans

(a) For salaried class (clean)

(i) if salary is credited at the

Branch

Loans /

Overdraft

PLR+0.25%

(i) other salaried class

Loans /

Overdraft

PLR+1.25%

(b) For non-salaried class

- Secured PLR+1.25%

- Unsecured PLR+1.25%

(c) Loans against NSC, KVP, IVP,SV of LIC policy, RBI Relief bonds

Loans PLR

Overdrafts PLR

(d) For purchase of Vehicles

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Two and Four Wheelers Loans PLR

(e) For purchase of consumer durables

Loans (if Salary is

credited at the Branch)

PLR + 0.25%

Loans (for other salaried

class)

PLR + 1.25%

Loans ( for non-salaried

class)

PLR + 1.25%

(f) For Agriculturists

Secured PLR + 2 .00%

Unsecured PLR + 3 .00%

(g) Loans to Pigmy Agents

Demand Loan PLR + 2.00%

Vehicle

Loan

Two

wheelerPLR

Four

wheelerPLR + 2.00%

XVIII. Synd Mahila PLR

XIX. SyndMortgage

Against Residential property -- PLR + 2.50%

Against Commercial property -- PLR + 2.50%

XX. SyndSenior - PLR

XXI. SyndPigmy - PLR

(floating)

XXII. SyndVyapar Improved scheme - PLRAlpa Dixit


RETAIL BANKING

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XXIII. Synd Rent (irrespective of size of advance) PLR + 2.00%

XXIV. All other Non-Priority Sector personal loans/advances - PLR + 3.00%

XXV. All Others not covered under 1 to 23 above (Like Medium and Large

Industry,

Whole sale/Retail Trade/ Business, Professional & Self Employed,

NBFCs, Other Real Estate )

(Working Capital/Short term advances/term loans)

Up to Rs.2.00 lacs PLR



Borrower

CR1 CR2 CR3 CR4 CR5 CR6 NP

A

Above Rs.2 lakhs 0.50 1.00 1.50 2.00 2.50 3.00 3.0

0

6.6. AGRICULTURAL LOAN PRODUCTS : AGRICULTURAL LOAN PRODUCTS :

1. Animal Husbandry Scheme : Under the scheme, the activity can be

taken-up as a whole time as well as subsidiary occupation. Support

available for the establishment of mini as well as Commercial Dairy Units.

Eligible purposes include Purchase of quality Animals, feeds, Equipments

and machinery such as Deep freezers etc.

2. Development of Irrigation Infrastructure : Medium to long term loans

with repayments upto 15 years. Construction of Open Wells, Borewells,

Tubewells, Check dams, Irrigation Tanks and Pump sheds, Repair of

Existing Wells Laying out Pipeline, Sprinkler and Drip Irrigation system, Lift

Irrigation projects. It is repayable in convenient Quarterly/Half

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Yearly/Yearly installments. Loan amount is linked with approved project

cost.

3. Farm Mechanization Schemes : Medium to long term loans are

extended to farmers for Purchase of Tractors, Power Tillers and Small

H.P, Tractors, Combine Harvesters, Threshers and Sugarcane Crushers,

Sprayers, Dusters and other equipments.

4. Hi-tech Agriculture : Medium to long term loans are extended for Tissue

Culture and establishment of Green Houses, Mushroom Production and

Processing, Production of Fruits, Vegetables and Cut flowers, Export of

Horticultural Products, Traditional and non-traditional Plantations,

Aquaculture, Agro-processing Industries, Aromatic and Medicinal Plants,

Cold Storage units.

5. SyndJaiKisan : To simplify the system of credit delivery to the farmers,

taking a holistic view on their credit requirement covering entire gamut of

expenditure related to investments on Agriculture, Contingencies,

Consumption and other pressing social obligations, the Bank has

introduced a hassle free farmer friendly credit scheme called

“SyndJaiKisan”. All existing farm loan customers from the operational area

of the Bank, with satisfactory past track record for a period of 2 years and

owning irrigated lands and cultivating at least two crops annually or cash

crops or plantation crops. Farmers cultivating single crop with assured

irrigation are also eligible. Purposes covered under the scheme: Farm

related activities, Contingencies, Redemption of high cost private debt,

Consumption purposes. It is to be repaid within a maximum period of 7

years based on expected time of harvesting/ marketing of farm produce.

Repayment holiday upto 18 months based on the requirements to be

decided on case-to-case basis is available.

6. Jewel Loans for Agriculture : Bank provides jewel loans to

agriculturists for their agricultural credit needs on easy terms and at low

cost. Lending at Rs. 650/- per gram on 22 carat gold or 75% of market

value of the jewel (80% for Hall Marked jewels) whichever is lower for

jewel loans with a repayment period upto 12 months. Lending at Rs. 600/- Alpa Dixit


RETAIL BANKING

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per gram on 22 carat gold or 65% of market value of the jewel (70% for

Hall Marked jewels) whichever is lower for jewel loans with a repayment

period exceeding 12 months and upto 24 months. Lowest interest rate at

7% per annum for loans upto Rs. 3.00 lac availed for crop production

purposes (Kharif 2006 & Rabi 2006-07) and at 8.5% (PLR-3.00) for loans

upto Rs. 50,000 for other agricultural purposes against pledge of jewels.

Service charges exempted for loans upto Rs. 25,000.Loans issued on all

working days.

7. Land Development Schemes : This scheme can be used for

increasing productivity. It supports activities such as Contour Bunding and

Terracing,Land reclamation and to treat Acid and Alkaline soils,Surface

and Subsurface Drainage System,Application of Fresh Soils to the

Garden.

8. Purchase of Land for Agricultural Purpose : Medium term loans

extended to agriculturists to make Small and Marginal holdings

economically viable.Loans given for purchase of fallow lands, waste lands

and to bring them under cultivation to improve the income and productivity

of Small/Marginal farmers and Agricultural Labours.

9. Rural Employment Generation Program : Here is an attractive

scheme for those who want to start a village/cottage industry or establish a

service sector unit in a village under food & Agro based sector, polymers

and chemicals, engineering and non-conventional energy, forest based

activities, mineral based units etc.Individuals, Trusts, co-operatives and

institutions can have projects with investments upto Rs.25 lakh. The

population of the area where the unit is located should not exceed 20000.

Borrowers have to contribute own funds of at least 10% of the project cost.

In case of weaker section beneficiaries viz., SCs / STs / OBCs / Women /

Minority / Physically Handicapped / Ex-servicemen, Margin requirement is

5% of project cost.Bank loan will be 90% of project cost in general and

95% in case of weaker section beneficiaries. For loan upto Rs.25,000/-

hypothecation of assets and for loans above Rs.25,000/-, in addition to

Alpa Dixit


RETAIL BANKING

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hypothecation of assets, collateral security of adequate value will be

required.Interest rate will be as prescribed by the Bank from time to time.

10.Solar Water Heater Systems : Syndicate Bank launches an Eco-

friendly low interest loan scheme to solve your energy crisis in

collaboration with Ministry of Non-Conventional Energy Sources,

Government of India. You can harvest abundant solar energy through

Solar Water Heating System financed under the scheme. Utilise the

opportunity to install these system with loan of very low interest rate at 5%

p.a., from select Branches of Syndicate Bank and save substantially your

time, money and energy. Capacity limitation for financing is 2000 LPD.

The borrowers are eligible for loan up to 85% of the cost of the system

repayable over a period of 5 years.Solar Water Heating Systems

comprising of Flat Plate Collectors (FPC) or Evacuated Tube Collectors

(ETC) are eligible to be financed under the scheme.

11. Syndicate 2/3/4 Wheelers Scheme : This scheme is useful for

efficient farm management. Financial assistance is available for purchase

of 2/3/4 wheelers. Medium term loans are extended for purchasing. Two

wheelers such as Scooter / Motorcycle / Mopeds.Pickup vans, Luggage

carriers, Cars, Jeeps and Vans.

12.Syndicate Farm House Scheme : The scheme is meant for farmers to

enable them to have a decent dwelling house which also takes care of

other requirements such as cattle shed, drying yard, farm implements

shed. Credit support is extended up to a limit of Rs.10 lakh for construction

of farm house. Loans for repair of damaged houses are also extended in

rural and semi-urban areas up to Rs.1.00 lakh.Loan is available for

purchasing ready built house and also construction of additional farm

house. Maximum repayment period is 20 years for new farm house and

five years for repair of farm house and the repayment period is linked with

the cash flow.The borrower should be an agriculturist with assured source Alpa Dixit


RETAIL BANKING

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of income and should not be more than 55 years of age Margin to be

contributed is 25% of the estimated cost of construction / repair. No

conversion of land is necessary and no income proof insisted.

13.Syndicate Kisan Credit Card(SKCC) : The objective of the new

scheme is to meet the credit needs of the farmers for cultivation of crops

and other requirements in a very convenient manner.Farmers, belonging

to villages served by Syndicate Bank, who are not defaulters in respect of

earlier loans and who have crop loan requirement, are eligible to avail the

facility. This facility is provided to the farmers for meeting expenditure

connected with cultivation of various crops, maintenance of small dairy /

poultry units, non farm activity and consumption needs to some extent.The

farmers having this facility can deposit money in the account when they

realise their income and withdraw it whenever needed. Farmers have to

pay money into the account after harvest season and have to operate the

account regularly.The facility is valid for 3 years. However, Bank will

review the operation in the account annually and decide about

continuation of the facility.Personal Accident Insurance Cover available

upto Rs. 50,000 for farmers upto 70 years of age.Minimum credit balance

of Rs.500/- and above in the account between 10th and last date of the

month will earn interest at Savings Bank rate.Rate of interest on the facility

will be as fixed by the Bank from time to time.The facility is to be secured

by hypothecation of crops / other assets and mortgage of land or charge

on land wherever required.

14. Tenant Farm Loan : Its objective is to augment flow of credit to

tenant farmers cultivating land either as oral lessees or sharecroppers and

small farmers who do not have proper title to their land holding through

formation and financing Joint Liability Groups (JLGs),to extend collateral

free loans to target clients through JLG mechanism,to build mutual trust

and confidence between banks and tenant farmers and among group

members.

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RETAIL BANKING

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7.7. OTHER SERVICES :OTHER SERVICES :

1. Tele Banking : Round the clock access regarding account details,

balance enquiries, transfer of funds can be made from one a/c to another

and utility bills like electricity, telephone, etc., can also be paid.

2. Internet Banking : The Bank is accessible from customers home, office

or while they are traveling. A login password and transaction password

has to be obtained, with these passwords the customer can login and (a)

view a/c 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 the Branch premises. The customer can (a) get cash

payment of his cheque upto a limit in any other CBS branches (b) get

collection of his cheques (c) purchase DDs, MTs, etc., or get on line

transfer of funds.

4. Synd Bill Pay : It is 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) are: a)Autopay – where the

Bank pays the bill on due date b)On line pay – where you can view the

bills that are due and authorize payment on line.

5. On-Line Collection of Direct Taxes : The Bank collects Central Board

Direct Taxes from the customer at the selected branches identified for this

purpose.

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RETAIL BANKING

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6. On-line Railway Ticket Booking : We have joined hands with Indian

Railway Catering & Tourism Corporation Ltd (IRCTC) to offer online

booking of railway tickets for all Internet-banking (Syndinet) customers of

the Bank. This facility is offered to the customers absolutely free of cost.

7. 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.

8. SyndInstant - (RTGS System for instant transfer of funds) : It is a

technology based initiative for the improvement of Payment & Settlement

System linked to the funds management. It is a gross settlement in which

both processing and final settlement of funds transfer instructions take

place continuously i.e. in real time and transfers are settled individually

against the present clearing system. It settles payments on a transaction

basis instead of on net settlement basis adopted presently at

clearinghouses. The funds transfer through RTGS is instant, final and

irrevocable.It is a remittance solution to both corporate customers and

individual customers for transfer of funds from their accounts with us to

other customers of other bank branches, which are RTGS, enabled.The

product is operative only in RTGS – enabled CBS branches(at present

178). At present customer transaction of Rs.1.00 lakh and above are

allowed under RTGS.

9. Electronic Funds Transfer (EFT) System : The scheme is available

for transfer of funds across the Banks at 14 centres at present where

Reserve Bank of India manages the Clearing Houses namely Ahmedabad,

Bangalore, Bhubaneshwar, Chandigarh, Chennai, Guwahati, Hyderabad,

Jaipur, Kanpur, Kolkata, Mumbai, Nagpur, New Delhi,

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Thiruvananthapuram & Patna. The EFT system works on the principle of "

NEXT DAY AVAILABILITY OF FUNDS" i.e. the beneficiary gets the funds

credited to his account on the very next day, within 24 hours. Any number

of remittances per day is permitted and the amount is directly credited to

beneficiary account.

10. Syndicate Gift Cheques : These are ideal gift suitable for any

occasion like birthday, naming ceremony, thread ceremony, marriage,

marriage-anniversary, Deepavali, Christmas etc.Gift cheques are issued at

par, i.e., without collecting any charges whatsoever. These are available in

denominations of Rs 51, Rs 101 and Rs 501. These are issued at over

786 branches all over India and encashable at par at any Branches /

Extension Counters all over India, i.e., in about 2000 outlets of the Bank.

11. Multi City Accounts: These are accounts which can be operated

in various CBS centres. The customer can opt for one of the five variant of

the accounts depending on the minimum average balance: (Synd – Silver

– Current Accounts)(Synd – Gold – Current Accounts)(Synd – Platinum –

Current Accounts)(Multi-city – Corporate with sweep-in & sweep-out

facility from OD A/c to Current A/c)(Multi-city SB A/c )These Multi-city

cheques can be debited at any of CBS network branches. Other

transactions like purchasing DDs, fund transfer, etc., could be done for

reasonable charges.

12. SyndSMSBanking: This is another useful facility for the benefit

of its tech-savvy customers. A mobile phone can make your banking

experience more friendly and enjoyable by allowing you to stay connected

with your account at any time. SyndSMSBanking is independent of the

handset model and you can avail this facility from most of the service

providers (GSM/CDMA). All that you have to do is to enter simple text

messages for operating this facility.This facility is introduced under CBS

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RETAIL BANKING

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environment. Under SyndSMSBanking, we have introduced the following

enhanced facilities:

1. SMS Enquiry Facility (SMS PULL Services)

2. SMS Alert Facility (SMS PUSH Services)

SMS enquiry facility is on-line and real time basis available 24/7. Whereas, SMS

Alert facility will not be real time and you would receive the same within 30

minutes from the time of transaction in the account for which alert to be sent.

Alpa Dixit


RETAIL BANKING

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Graph 2 : A snapshot of various products and services offered by

Syndicatebank

Alpa Dixit


Bancassurance

Cash Mngmnt Services

Any Branch Banking

Credit & Debit Cards

Multi City Accounts

Online Collection of Direct

Taxes

Online Railway Ticket

Booking

Electronic Funds

Transfer

Internet & Telebanki

ng

Loans

Deposits

Syndicate Bank

Products &

Services

RETAIL BANKING

________________________________________________________________________

4.4 RESPONDENT’S PROFILE

For this study, the universal sample comprised of 100 respondents. The

respondents consisted of both men and women from different stratas of the

society. The customers of the Bank range from rich businessmen to the

underprivileged farmers. The customers include both the self employed as well

as salaried people. For constructing this sample, 100 customers of the Bank were

selected randomly and interviewed. The sample consists of respondents with

different age, qualification, income group and needs.

Graph 3: Age Profile of respondents

Majority of the respondents belonged to the age group of 25 – 40 years. The

reason associated with it is that this group is the highest user of retail offerings.

The following graph gives details about the income profile of the respondents.

Respondents earning Rs. 8000-15000 constitute the major chunk of the

respondents using retail product. This income group qualifies almost all eligibility

criteria of retail offerings.

Alpa Dixit


Age Profile

15%

45%

23%

17%18-25 yrs

25-40 yrs

40-55 yrs

55 yrs & above

RETAIL BANKING

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Graph 4 : Income profile of respondents

Income Profile

15%

15%

27%

30%

13%Non-earning

< 5000

5000-15000

15000-30000

> 30000

Graph 5 : Professional profile of respondents:

Retail products being also designed for students and retired people, they were

considered for the survey. Salaried and businessmen are the major users of retail

products.

Alpa Dixit


Proffessional Profile

7

29

15

9StudentsSalariedBusinessmenRetired

RETAIL BANKING

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CHAPTER 4

ANALYSIS AND INTERPRETATION

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RETAIL BANKING

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4.1 TABLES AND ANALYSIS

With the help of available data actual benefits can be found out by using

statistical tools such as inserting graphs, calculating percentage level of

respondents etc.

The number of people from whom data has been collected are:

Table 8 : Gender wise classification of respondents

Male 62

Female 38

Total 100

Graph 7 : Gender-wise classification of respondents

62%

38%

men women

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Question : How often do you visit the branch?

Purpose : To know the popularity of internet and branch banking

Table9 : Number of visits to the branch :

Daily Weekly Fortnightly Monthly

Number 0 55 25 20

Percentage 0% 55% 25% 20%

Graph 8 :Number of visits to the branch :

0%

55%25%

20%Daily

Weekly

Forthnightly

Monthly

Analysis: Almost 55% respondents visit the branch weekly followed by 25%

respondents who visit the branch fortnightly while only 20% of the respondents

visit the branch monthly. Large proportions of the respondents visit the branch

weekly and fortnightly which is a high frequency. This shows the keenness of the

customers to visit the branch for various issues but. Nonetheless, the Bank must

try to popularize internet banking too among its customers to make the branches

less crowded.

Question : How far is your office/home from the branch?Alpa Dixit


RETAIL BANKING

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Purpose : To ascertain whether the customers have an easy access to the

branch or not.

Table 10: Distance from branch:

0-1 km 1-5 km 5-10 km >10 km

Distance 15 45 15 25

Percentage 15% 45% 15% 25%

Graph 9 :Distance from branch:

15%

45%15%

25%0-1KM

1-5 KM

5-10KM

> 10KM

Analysis : A large percentage of respondents live far from their bank branch,

45% are 1-5km away from their bank branch, 15% are further 5-10km away

whereas 25% have their bank branches more than 10km away from their

home/office and still the visits to the branch have a high frequency. Only 15 % of

the respondents are as close as 0-1km from their bank branch. This means that

the customers have to commute long distances to reach the branches.

Question : What are the various issues for which you need to visit the branch?

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RETAIL BANKING

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Table11: Reasons for visiting the branch:

Cheque

deposit

fd/rd

renewal

and

deposit

Cash

deposit

Cash

withdrawal

Dd/po

funds

transfer

statements a/c

opening

Number 21 1 30 3 15 4 26

Percentage 21% 1% 30% 3% 15% 4% 26%

Graph 10 :Reasons for visiting the branch:

21%

1%

30%3%15%

4%

26%

cheque deposit

fd/rd opening andrenew al

cash deposit

cash w ithdraw l

dd/po/funds transfer

statements

a/c opening

Analysis : Since multiple answers were given, the highest frequency of people

visiting the branch is for cash deposit while a/c opening is the next favorite in the

answers. The Bank should come up with some alternative measures for these, as

it will help the Bank in enforcing ‘anytime, anywhere banking’ in the true sense of

the word.

Alpa Dixit


RETAIL BANKING

________________________________________________________________________

Ques : What influences your purchase decision at Syndicate Bank?

Table 12: Reasons for purchase at Syndicate Bank:

Interest

Rates

Processing

Time

Goodwill Word of

mouth

Advertisemen

t

Number 35 37 7 15 6

Percentage 35% 37% 7% 15% 6%

Graph 12 :Reasons for purchase at Syndicate Bank:

Analysis: The respondents were asked to rank the following factors according to

their preferences to the extent to which they influence their purchase decision at

the Bank. Majority of the respondents considered processing time to be the major

influencing factor for making purchase decision while interest rate forms a close

second. Time is the most valuable factor in today’s world of hectic schedules,

that’s the reason why processing time is considered as most valuable factor in

consideration list.

Question : What all retail products have you availed from Syndicate Bank?

Alpa Dixit


INFLUENCING FACTORS

35

7

15

6

37

05

10152025303540

Inte

rest

rate

s

Pro

cessin

g

tim

e

Go

od

will

Wo

rd o

f m

ou

th

Ad

vert

isem

en

t

Factors

%

RETAIL BANKING

________________________________________________________________________

Table: Retail products availed from the bank

Housing Loan

Vehicle Loan

Education Loan

Personal Loan

Credit Cards

Others

Number 21% 27 6 10 25 11Percentage 21 27% 6% 10% 25% 11%

Graph 13 :Retail products availed from the bank

Analysis : In our survey majority of the respondents had availed vehicle loan

followed by credit cards. Majority of the respondents belong to the age group of

25-40 and most of them are salaried people. This is the stage where people try

to bring alive their aspirations of having their own home and vehicle and hence

these loan constitute major chunk of retail product availed by the respondents.

Question : How do you get informed about various Syndicate Bank schemes?

Alpa Dixit


Retail Products Availed

Vehicle loan27%Education

loan6%

Personal loan10%

credit cards25%

Others11%

Housing loan21%

RETAIL BANKING

________________________________________________________________________

Table : Medium of awareness of the products:

Television Newspapers & Magazines

Billboards & Hoardings

Word of Mouth

Website

Number 7 35 17 26 15Percentage 7% 355 17% 26% 15%

Graph 14 : Medium of awareness of the products:

Aw areness of Syndicate Bank Through Various Medium

7%

35%

17%

26%

15% Television

New spapers & Magzines

Billboards & Hoardings

Word of Mouth

Website

Analysis: Customer’s awareness of Syndicate Bank through various media was

measured. Syndicate Bank being an old and experienced player, has immense

awareness through the word of mouth media.

Ques: To what extent are the customers satisfied with the products and services of Syndicate BankAlpa Dixit


RETAIL BANKING

________________________________________________________________________

Table: Level of customer satisfaction :

Satisfied Mostly Satisfied

Neither Satisfied/Unsatisfied

Mostly Unsatisfied

Unsatisfied

Number 64 24 10 2 0Percentage 64% 24% 10% 2% 0%

Graph: Level of customer satisfaction :

Analysis: The graph shows that 64% of the respondents are satisfied with the products of the Bank while 24% of them are satisfied to a large extent. While none of the customers are dissatisfied with the services, 10% of them are indifferent and 2% are always dissatisfied to a large extent. This shows that most of the people who transact with the Bank are happy with its services but a large chunk of them, i.e., 26% are not always satisfied with the services of the Bank. As such the Bank should provide even more flexible and friendly customer services to gain more weightage on the customer satisfaction scale.

Ques: Which is your favorite Bank for transacting?

Table: To know the customer preferences for Syndicate Bank over other Banks.Alpa Dixit


RETAIL BANKING

________________________________________________________________________

Quality Service

Rates charged

Graph:

CHAPTER 5

Alpa Dixit


RETAIL BANKING

________________________________________________________________________

FINDINGS AND RECOMMENDATIONS

5.1 FINDINGS

Almost 60% of the respondents live within a range of 5-10 kms from the

Bank. So because of this, the customers experience inconvenience in

commuting long distances.

Alpa Dixit


RETAIL BANKING

________________________________________________________________________

A large number of respondents visit the branch frequently to handle

banking issues even though their bank branch is quiet far of for either their

home or office, this shows the keenness of the customers to visit the

branch for almost every small issue.

Processing time and interest rates are major influencing factors for making

purchase decision.

Awareness through newspapers and magazines is at the highest level

followed by word of mouth advertising.

The branches are crowded with customers for most part of the day.

It is clear that out of 52 sample 82 per cent of clients are satisfied with the service

and 18 per cent are not satisfied with the service. From the survey it is clear that

Customers are Satisfied with services given by the ICICIdirect

It has been found that still customers prefer to Offline Trading and the Company

has to create more awareness about Online Trading products and their

promotional activities.

The people are successful in sorting out the 80 per cent of client problems within

seven days.

Alpa Dixit


RETAIL BANKING

________________________________________________________________________

5.2 RECOMMENDATIONS

The key for retail banking service providers to stay one step ahead of the

competition is to recognize and understand the changing needs of the

market and deliver a highly valued solution

The bank has a lot of scope to enhance its retail banking. The keys to its

retail strategy can be developing new products and services, networking

its branch locations, developing its distribution channels including ATMs

and internet banking.

Though the bank has a nationwide presence in the agriculture and small-

scale industry sectors but it still has a lot of scope for strengthening its

priority sector banking business. One aspect of its strategy could be to

further strengthen its ties with the agricultural community by providing

training and social support programs for the rural populace.

The Bank should market its products more aggressively to attract more

customers and combat competition posed by the private sector players.

The Bank should popularize Internet Banking among the customers even

further to make the branches less crowded.

The Bank should also ensure easy access of the customers to the

branches by opening more branches.

To popularize ICICIdirect.com products, company has to come up with more

advertisement media such as direct marketing, hoardings, newspapers and direct

mail.

According to the findings, the company people should contact their customer at

least once in every month so that they can log in the customer and tell the current

news about ICICIdirect Company and market including introduction of special

services.

Alpa Dixit


RETAIL BANKING

________________________________________________________________________

5.3 CONCLUSION

Conclusions

The study was aimed at Comparison between the selected portals with reference to

ICICIdirect.com Limited. And conclusion has been drawn after carrying out analysis

of the data.

It is seen that the respondents have been trading through the online, which is a

positive stroke to the stock brokers. This proves the point that there is a strong

presence of online trading in city.

Awareness about ICICIdirect.com is high. Its different avenues like Classic

Account, Call-n-Trade etc., are quite familiar to the respondents.

Most of the respondents know about ICICIdirect.com through company peoples

not through advertisements.

Majority of the respondents feel that the service offering by ICICIdirect.com is

very satisfactory.

Alpa Dixit


RETAIL BANKING

________________________________________________________________________

Retail banking in India has fast emerged as one of the major drivers of the overall

banking industry and has witnessed enormous growth in the recent past. Retail

banking is the fastest growing sector of the banking industry with the key success

by attending directly the needs of the end customers is having glorious future in

coming years.

Retail banking sector as a whole is facing a lot of competition ever since financial

sector reforms were started in the country. Walk-in business is a thing of past

and banks are now on their toes to capture business. Banks therefore, are now

competing for increasing their retail business. There is a need for constant

innovation in retail banking. This requires product development and

differentiation, micro-planning, marketing, prudent pricing, customization,

technological upgradation, home / electronic / mobile banking, effective risk

management and asset liability management techniques.

India has emerged as a potential market with huge investment opportunities.

Syndicate Bank has been quiet successful in tapping this opportunity through its

innovative retail products for different stratas of the society.

The higher growth of retail lending in Syndicate Bank is attributable to fast growth

of personal wealth, favourable demographic profile, rapid development in

information technology, the conducive economic environment and financial

market reforms. The retail banking market is continuing to evolve and undergo

significant market change. Increasing competition, product and service

diversification, and greater online channel usage have resulted in a need for

banks to deepen relationships with existing clients, as well as attract and convert

prospects. The retail banking strategies of the Bank has undergone major

transformation, as it has adopted a mix of strategies like organic growth,

Alpa Dixit


RETAIL BANKING

________________________________________________________________________

acquisitions and alliances. This has resulted in a paradigm shift in the marketing

strategies of the Bank.

Syndicate Bank is adopting aggressive strategies, leveraging its branch network

and customer base to earn a larger share of the retail pie. The Bank is also going

in for innovative strategies like cross selling and packaged selling of retail

products. At the same time, it is offering new foreign players tough competition

too.

BIBILIOGRAPHY

Alpa Dixit


RETAIL BANKING

________________________________________________________________________

www.syndicatebank.in www.google.com www.managementparadise.com www.hindu.com www.wikipedia.com www.businessworld.in www.rbi.org.on www.yahoo.com

ANNEXURES

Alpa Dixit


http://www.yahoo.com/

http://www.rbi.org.on/

http://www.businessworld.in/

http://www.wikipedia.com/

http://www.hindu.com/

http://www.managementparadise.com/

http://www.google.com/

http://www.syndicatebank.in/

RETAIL BANKING

________________________________________________________________________

The following is the copy of the questionnaire used for the purpose of data collection for this project.

QUESTIONNAIRE

Name : _______________________________

Age : _______________________________

Sex : _______________________________

Marital Status : ________________________

1. Nature of work:

Businessman Government Private Individual

2. Do you prefer online banking or branch banking?

Online Banking Branch Banking

3. Which bank do you prefer transacting with?

ICICI Syndicate Bank PNB SBI

Canara Bank Standard Chartard Bank Axis Bank

4. Are you satisfied with the customer service provided by Syndicate Bank?

Yes No

5. Are the branches of Syndicate Bank easily accessible?

Yes No

Alpa Dixit


RETAIL BANKING

________________________________________________________________________

6. Are the interest rates offered by Syndicate Bank attractive than other banks?

Yes No

7. Does the website of Syndicate Bank provide all the necessary and updated

information?

Yes No

8. Do the products and services provided by Syndicate Bank satisfy all your needs?

Yes No

9. How many years experience have you had with Syndicate Bank?

< 1 yr 1-5 yrs 5-10 yrs >10 yrs

10. What are the attractive features of Syndicate Bank?

Attractive interest rates Variety of products

Good customer service Low processing time and formalities

11. Which retail banking product have you availed of from Syndicate Bank?

Housing Loan Car Loan Education Loan Personal Loan Others, Please specify _________________

12. Is there a difference between the promised and delivered services of Syndicate Bank?

Yes No

13. How do you get informed about the latest offerings of Syndicate Bank?

Word of Mouth Newspapers & Magzines

Website Billboards Television

Through other people

14. Rank the following factors according to their weightage in your purchase decision.

Cost _______ Processing time _______

Alpa Dixit


RETAIL BANKING

________________________________________________________________________

Goodwill _______ Word of mouth _______ Advertisement ________

15. Would you recommend your bank to someone else for the same product or any other product that your bank offers?

Yes No

16. Please recommend a retail product, not currently available, which if offered, will be readily availed by you.

_____________________________________

17. What problems do you encounter while dealing with Syndicate Bank?

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

18. What improvements would you suggest for enhancing the services of Syndicate Bank?

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Alpa Dixit


Dissertation Project

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