Dissertation Project

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CHAPTER 1
INTRODUCTION
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Bangalore Institute Of Management Studies Page 1

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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
Net Bank Credit annual report for 2008-09, as on
14.1%
March 22, 2009, retail credit
outstanding amounted to Rs
85.9% 3,70,000 crore, including housing
Retail credit
Others
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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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.
Table 2 : Categorization of retail bank services:

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Core services Facilitating services Supporting services
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Payment services Cash Making payments at door
Foreign Currency step
Requirement
Traveler Charges Internet banking
DD/ Bankers Cheque
IT Telephone banking
EFT
Current account and ATM card Credit cards
savings account Standing instructions
from customers for Debit cards
making payments
Interbranch/interbank Services to senior
transfer of funds citizens
Safety vault
Telephone banking
Internet banking
Conversion of excess
balance to Time deposits
Loan products: Current account Delivery of loan at
Consumer loans, Savings account promised time period
personal loans, housing Time deposit account Interest rate option:
loans, educational loans Fixed/floating
Flexibility in pre-payment
of loan
Counseling on Real-
estate markets
Legal services for
documentation
ECS for payment of loan
installments
Insurance products: Life Current account Additional insurance

insurance,
Alpa Dixit pension Savings account facility for family
schemes Time deposits members
Safety vaults Counseling on post
retirement savings
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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.
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
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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.
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.
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 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?
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.
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 To provide a framework for effective Customer Relationship Management.
Importance of the study:
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.
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o To provide anytime, anywhere access of the retail banking services

to the customers.
o To reduce the operational costs of the Bank.
CHAPTER 2
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RESEARCH METHODOLOGY
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.
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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.
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.
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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 1/300th 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.
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
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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.
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.
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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.
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.
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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.
CHAPTER 3
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PROFILES
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
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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.
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.
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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.
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
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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.
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”
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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
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
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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
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,
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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
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.
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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
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
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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.
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
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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. PARA 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.
FEATURES OF THE CARD:
a. Global Debit Card is issued in association with VISA.
b. Acceptance at following locations-
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Table : 3 Features of Syndicate Bank Debit Card
LOCATION
LOGO PURPOSE
All ATMs of For Cash Withdrawal, Balance
SyndicateBank Enquiry, Mini Statement &
Change of PIN through over 350
ATMs
Other Banks’ ATMs For Cash Withdrawal & Balance
displaying Enquiry through over 16,000
VISA Logo ATMs in India and over 10 lakh
ATMs globally
Merchant For purchases through over 1.88
Establishments lakh MEs in India and over 24
Displaying VISA million MEs globally
Logo
All ‘CashTree’ ATMs For Cash Withdrawal & Balance
Enquiry through over 2,000
ATMs
Table 4 : Details of the Debit Card

Type of Transaction CARDS ISSUED BY CARDS ISSUED BY
S CBS BRANCHES NON-CBS
No BRANCHES
Value in Indian Rupee or equivalent Foreign
Currency
A Minimum Value of any Rs.100/- Rs.100/-
transaction at ATM or POS (Rs. one hundred only) (Rs. one hundred only)
B Maximum Value per Rs.10,000/- Rs.5,000/-
transaction at ATM or POS (Rs. ten thousand only) (Rs. five thousand only)
C Maximum Value of on-line Rs.25,000/- Rs.15,000/-
transactions per day at (Rupees twenty five (Rupees fifteen
ATM or POS or both put thousand only) thousand only)
together
D Number of transactions No restriction No restriction
permitted per day
E Maximum permissible Rs.10,000/- Rs.5,000/-
value of off-line transaction (Rs ten thousand only) (Rs five thousand only)
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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 :
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
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Cash All ATMs of Syndicate Bank (over 1040), ATMs under ‘CashTree’
Withdrawal 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: 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,
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
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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.
C. DEPOSIT SCHEMES :
1. Synd 400 Plus and Synd 500 Plus: Individuals / Firms /

Companies / Trust etc., who are eligible to open an account with the
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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.
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.
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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
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
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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.
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
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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
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
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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 Rural Semi Urban Urban
CITIZEN
ACCOUNT
1. Savings Bank A/c
A. Domestic
a. With cheque 3.5% 3.5% Rs.500/- Rs.500/- Rs.1000/-
book facility
b. Without cheque 3.5% 3.5% Rs.100/- Rs.100/- Rs. 500/-
book facility
c. No Frills
Account
With cheque 3.5% 3.5% Rs.500/- Rs.500/- Rs.500/-
book facility
Without
cheque book
3.5% 3.5% Nil Nil Nil
facility
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
Term Deposits (All Maturities)
Rate of Interest w.e.f. 16.02.2009
7 days & upto 14 days (applicable for 3.25
deposits of Rs. 25 lakhs & above)
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
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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
Term Deposits (All Maturities)
above
7 days & upto 14 days 3.75
1 year and above 7.50
a. NRO (All Maturities)
b. NRE w.e.f 01.04.2009
1 yr. & above 3.72

but less than 2 years
2 yrs & above 3.15

but less than 3 years
3 yrs and above upto 5 years 3.45
1 year & 2 years & 3 years & 4 years & For 5 years
above but < above but above but above but (Maximum)
2 years < 3 years < 4 years < 5 years
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c. FCNR(B)
i) USD 2.97 2.40 2.70 2.99 3.23
ii) GBP 3.07

(1 yr 1day)
iii) EUR
(1 yr 1day) 2.83
iv) CAD 2.
(1 yr 1day) 98
v) AUD 4.9
(1 yr 1day) 2
4. 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. 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
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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
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
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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).
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
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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-
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.
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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
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.
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.
13.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
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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
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.
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.
14.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.
15.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.
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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.
16.SyndJaiKisan: : It is a hassle free multipurpose, composite, long term

farm credit scheme for agriculturists. It simplifies 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. 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.
17.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 &
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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. Agriculture
(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 PLR minus 2.00%
Rs.2.50 lakhs
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:
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Above Rs.50000/- upto Rs.2 lakhs PLR minus 1.00%
Above Rs.2 lacs Spread to be added to PLR
Credit Rating of CR CR CR CR CR5 CR6 NPA
Borrower 1 2 3 4
a. Term loans NA NA 0.0 1.0 1.50 1.75 2.00
0 0
b. Short TL / NA NA 0.0 1.2 2.00 2.00 2.00
Working Capital 0 5
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 PLR -2.00 PLR -2.00 PLR -1.50 PLR – 1.50
Rs.2.00 lakhs
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 PLR -0.50 PLR PLR+0.5 PLR
-0.75 0 +1.0
0
B) SMALL
ENTERPRISES
Alpa Dixit

RETAIL BANKING
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Credit Rating of Borrower CR01 CR02 CR03 CR04 CR05 CR06

Above Rs.2 lacs PLR- PLR PLR PLR+ PLR + PLR
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 CR CR CR4 CR CR6
1 2 3 5
Above Rs.2 lacs 0.0 0.5 1.0 1.50 2.0 2.50
0 0 0 0
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
Housing Intermediaries
i) Advances granted on or before 02.05.1999
PLR minus 0.50%
(unless otherwise advised to charge any
particular interest rate in specific cases)
ii) Advances granted on or after 03.05.1999 and PLR minus 0.01%
upto 09.11.2000
iii) Advances granted on or after 10.11.2000
Credit Rating of the CR CR CR3 CR4 CR5 CR6 NP
Borrower 1 2 A
Working Capital/Short 0.0 1.0 1.50 2.00 2.50 3.00 3.00
term advance/term loans 0 0
(b) Other intermediary agencies
(i) advances granted upto 9.11.2000 PLR minus1.50%
(ii) advances granted on or after 10.11.2000
Credit Rating of the CR CR CR3 CR4 CR5 CR6 NP
Alpa Dixit

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Borrower 1 2 A
Working Capital/Short 0.0 1.0 1.50 2.00 2.50 3.00 3.00
term advances/term loans 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 Banks
PLR
VII. LC paid/ BG paid/ DPG installment paid (inclusive of

PLR+5.00%
overdue interest of 2.00%)
VIII. For delayed period of remittance received in respect of bills

under IDBI/SIDBI Bill Re discounting Scheme (including overdue PLR+5.00%
interest of 2.00%))
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

upto Rs.30 lakhs
For Loan Amount above Rs. 30 lakhs Interest Rate

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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 Rate

i) Upto Rs.50,000/- - PLR minus 3.00%
ii) Rs.50,000/- to Rs.3 lacs - For Agriculture/SSI PLR minus 1.00%
- For Others PLR
iii) Above Rs.3 lakhs (applicable
for CR 02) PLR
PLR+1.00%
For Agriculture/SSI
For Others
B) Jewel Loans/OD (Others) PLR+2.00%
XVI. SyndSwarna Express - PLR +

1.00%
XVII. Personal Banking Scheme Loans

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(a) For salaried class (clean)
(i) if salary is credited at the

Loans / PLR+0.25%
Branch
Overdraft
(i) other salaried class Loans / PLR+1.25%

Overdraft
(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

Two and Four Wheelers Loans PLR
(e) For purchase of consumer durables

Loans (if Salary is PLR + 0.25%
credited at the Branch)
Loans (for other salaried PLR + 1.25%
class)
Loans ( for non-salaried PLR + 1.25%
class)
(f) For Agriculturists
Secured PLR + 2 .00%
Unsecured PLR + 3 .00%
(g) Loans to Pigmy Agents
Demand Loan PLR + 2.00%
Two
PLR
Vehicle wheeler
Loan Four
PLR + 2.00%
wheeler
XVIII. Synd Mahila PLR
XIX. SyndMortgage
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Against Residential property -- PLR + 2.50%

Against Commercial property -- PLR + 2.50%
XX. SyndSenior - PLR
XXI. SyndPigmy - PLR

(floating)
XXII. SyndVyapar Improved scheme - PLR
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

Credit Rating of the CR1 CR2 CR3 CR4 CR5 CR6 NP
Borrower A
Above Rs.2 lakhs 0.50 1.00 1.50 2.00 2.50 3.00 3.00
6. 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.
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RETAIL BANKING
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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
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,
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RETAIL BANKING
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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/-
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
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RETAIL BANKING
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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
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.
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RETAIL BANKING
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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
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
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RETAIL BANKING
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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.
7. 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.
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RETAIL BANKING
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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.
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
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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,
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
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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
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

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Graph 2 : A snapshot of various products and services offered by

Syndicatebank
Deposits
Bancassur
Loans
ance
Cash Internet &

Mngmnt Telebanki
Services ng
Syndicate
Bank
Products
Any & Electronic
Branch Services Funds
Banking Transfer
Online
Credit &
Railway
Debit
Ticket
Cards
Booking
Online
Multi City Collection
Accounts of Direct
Taxes
Alpa Dixit

RETAIL BANKING
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Deposits
Bancassur
Loans
ance
Cash Internet &

Mngmnt Telebanki
Services ng
Syndicate
Bank
Products
Any & Electronic
Branch Services Funds
Banking Transfer
Online
Credit &
Railway
Debit
Ticket
Cards
Booking
Online
Multi City Collection
Accounts of Direct
Taxes
4.4 RESPONDENT’S PROFILE
Alpa Dixit

RETAIL BANKING
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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
Age Profile
17% 15%
18-25 yrs
25-40 yrs
23% 40-55 yrs
45% 55 yrs & above
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.
Graph 4 : Income profile of respondents
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Income Profile
13% 15%
Non-earning
15% < 5000
5000-15000
30% 15000-30000
> 30000
27%
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.
Proffessional Profile
9 7
Students
Salaried
Businessmen
15
Retired
29
Alpa Dixit

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CHAPTER 4
ANALYSIS AND
INTERPRETATION
4.1 TABLES AND ANALYSIS

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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
38%
62%
men women
Question : How often do you visit the branch?
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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 :
20% 0%
Daily
Weekly
Forthnightly
55%
25% 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?
Purpose : To ascertain whether the customers have an easy access to the
branch or not.
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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:
25% 15%
0-1KM
1-5 KM
5-10KM
15% > 10KM
45%
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?
Table11: Reasons for visiting the branch:

Cheque fd/rd Cash Cash Dd/po statements a/c
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deposit renewal deposit withdrawal funds opening

and transfer
deposit
Number 21 1 30 3 15 4 26
Percentage 21% 1% 30% 3% 15% 4% 26%
Graph 10 :Reasons for visiting the branch:
cheque deposit
fd/rd opening and

renew al
21% cash deposit

26%
1%
cash w ithdraw l
4%
15% 30% dd/po/funds transfer
3%
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.
Ques : What influences your purchase decision at Syndicate Bank?

Table 12: Reasons for purchase at Syndicate Bank:
Interest Processing Goodwill Word of Advertisement
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Rates Time mouth

Number 35 37 7 15 6
Percentage 35% 37% 7% 15% 6%
Graph 12 :Reasons for purchase at Syndicate Bank:
INFLUENCING FACTORS
40 35 37
35
30
25
%20 15
15
10 7 6
5
0
Word of mouth
Goodwill
Advertisement
Processing
Interest rates
time
Factors
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?
Table: Retail products availed from the bank
Housing Vehicle Education Personal Credit Others

Loan Loan Loan Loan Cards
Number 21% 27 6 10 25 11
Percentage 21 27% 6% 10% 25% 11%
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Graph 13 :Retail products availed from the bank
Re ta il P roducts Ava ile d
Oth e r s Ho u s in g
11% lo an
21%
cr e d it car d s
25%
V e h icle lo an
Pe r s o n al Ed u catio n 27%
lo an lo an
10% 6%
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?
Table : Medium of awareness of the products:
Television Newspaper Billboards Word of Website

s& & Mouth
Magazines Hoardings
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Number 7 35 17 26 15
Percentage 7% 355 17% 26% 15%
Graph 14 : Medium of awareness of the products:
Aw areness of Syndicate Bank Through Various Medium
15% 7% Television
New spapers & Magzines
35%
Billboards & Hoardings
26% Word of Mouth
17% 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 Bank
Table: Level of customer satisfaction :
Satisfied Mostly Neither Mostly Unsatisfied

Satisfied Satisfied/Unsatisfied Unsatisfied
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Number 64 24 10 2 0
Percentage 64% 24% 10% 2% 0%
Graph: Level of customer satisfaction :
Customer Satisfaction
2%
10% 0%
satisfied
24% mostly satisfied
niether satisfied/unsatisfied
mostly unsatisfied
64% unsatisfied
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.
Quality Rates
Service charged
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Graph:
CHAPTER 5
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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.
 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
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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.
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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.

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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.
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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,
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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
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 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
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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
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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 _______
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Processing time _______

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

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RETAIL BANKING

Bangalore Institute Of Management Studies Page 1

1.1 BACKGROUND OF STUDY

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

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

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

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Graph 1 : Total Net bank credit

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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

Table 2 : Categorization of retail bank services:

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Insurance products: Life Current account Additional insurance

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

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

1.2 STATEMENT OF THE PROBLEM

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1.3 NEED AND IMPORTANCE OF THE STUDY

Need of the study:

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 To provide a framework for effective Customer Relationship Management.

Importance of the study:

1.4 OBJECTIVES OF THE STUDY

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

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

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2.1 TYPE OF RESEARCH

Research is a systematic and objective identification collection, analysis,

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2.2 SAMPLING TECHNIQUE

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

There are two types of sampling techniques:

 Probability Sampling: This technique is based on the theory of

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

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2.3 SAMPLE SIZE

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

2.4 SAMPLE DESCRIPTION

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selected randomly and interviewed. The sample consists of respondents with

2.5 INSTRUMENTATION TECHNIQUE

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

2.6 ACTUAL COLLECTION OF DATA

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2.7 LIMITATIONS OF THE STUDY

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

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o Time is a major constraint.

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3.1 INDUSTRY PROFILE

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

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3.2 COMPANY PROFILE

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