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Syndicate Bank

Syndicate Bank
सिंडिकेट बैंक
Public
Traded as BSE: 532276
NSE: SYNDIBANK
Industry Banking, Financial Services
Founded Udupi, 1925 (as Canara Industrial and Banking Syndicate Limited)
Founder Upendra Ananth Pai, T M A Pai
Vaman Kudva
Headquarters Manipal, Karnataka, India
Key people

Shri Arun Shrivastava
(Managing Director and CEO)

Shri T K Srivastava
(Executive Director)
Shri Ravi Shanker Pandey
(Executive Director)
Products Finance and insurance
Consumer Banking
Corporate Banking
Investment Banking
Investment Management
Private Equity
Mortgages
Credit Cards
Slogan Faithful and Friendly (English) & Viswasaneeya Hitheshi (Sanskrit)
Website .in.syndicatebankwww

Syndicate Bank is one of the oldest and major commercial banks of India. It was founded by T M A Pai, Upendra Pai and Vaman Kudva. At the time of its establishment, the bank was known as Canara Industrial and Banking Syndicate Limited. The bank, along with 13 major commercial banks of India, was nationalised on 19 July 1969, by the Government of India.

Contents

  • March 2015 Data 1
  • Business 2
  • Mergers 3
  • Regional Rural Banks 4
  • In the news 5
  • Branch Expansion 6
  • Financial Inclusion 7
  • Capital Planning 8
  • Corporate Tie Up 9
  • Corporate Strategies 10
  • Corruption Allegations 11
  • Going Forward 12
  • Syndicate Manipal School of Banking 13
  • See also 14
  • References 15
  • External links 16

March 2015 Data

Global_Business 461192 crore (US$70 billion) (31 March 2015)
Total Deposits 255388 crore (US$39 billion) (31 March 2015)
Total Advances 205804 crore (US$31 billion) (31 March 2015)
Total Investments 6933966 lakh (US$10 billion) (31 March 2015)
Total Assets 30313525 lakh (US$46 billion) (31 March 2015)
Capital 66206 lakh (US$100 million) (31 March 2015)
Reserves & Surplus 1239672 lakh (US$1.9 billion) (31 March 2015)
Operating Profit 4007 crore (US$600 million) (31 March 2015)
Net Profit 1523 crore (US$230 million) (31 March 2015)
Domestic Deposits 225402 crore (US$34 billion) (31 March 2015)
Domestic CASA 63671 crore (US$9.6 billion) (31 March 2015)
Domestic Advances 165153 crore (US$25 billion) (31 March 2015)
Global Gross NPA 6442 crore (US$970 million) (31 March 2015)
Global Net NPA 3843 crore (US$580 million) (31 March 2015)
Ret'n Assets(%)Annualzd 0.58% (31 March 2015)
Book Value/Share 197.24 crore (US$30 million) (31 March 2015)
Customer base Over 32 million (2013–14)
Employees 27222
Domestic Branches 3682
Metro Branches 682
Urban Branches 783
Semiurban branches 936
Rural Branches 1150
Overseas branches 1
ATM 3427 approx

Business

The business with a capital of 8000 rupees. T M A Pai, Upendra Pai and Vaman Kudva strove together to set up the bank. The first branch of the bank started its operations in 1925 at Udupi, in Dakshin Kannada district in Karnataka state. By 1937, it had secured its membership as a clearing house at Mumbai. The primary objective of the business was to extend the financial assistance to local weavers. Initially, the bank collected as low as two annas from the door steps of the depositors daily through its agents. This type of system wherein the agents of the bank come doorsteps to collect deposit is still prevailing in India and is referred to as the Pigmy Deposit Scheme

Syndicate Bank in Eastcheap - geograph.org.uk - 1715195

to know more about Syndicate Bank products & services you may install SYNDGUIDE app on your mobile

Mergers

As time progressed, twenty banks merged with the Canara Industrial and Banking Syndicate Limited including the Maharastra Apex Bank Limited and Southern India Apex Bank Limited. The name of the bank was changed to Syndicate Bank Limited in 1964 and the head office of the bank was shifted to Manipal. The bank expanded its operations not only on the domestic front but also overseas. It has a branch in London and the bank manages National Exchange Co. in Doha and Musandam Exchange Co. in Muscat. By 1978, it opened its 1000th branch at Hauz Khas, Delhi. Currently it has over 3500 branches and all branches are offering corebanking-e-banking services under anywhere-anytime-anyhow banking. Syndicate Bank has one branch in London, United Kingdom.

Regional Rural Banks

Syndicate Bank sponsored the first regional rural bank in India by name Prathama Bank, in Moradabad district Uttar Pradesh on 2 October 1975. 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 is a four-year $75855.6 million effort, launched in April 2003 to help accelerate the market for financing solar home systems in southern India. Presently, the bank is sponsoring 3 RRBs and all are profit making having total business of Rs.42101 crore with 1348 branches as on 31.03.2015.

In the news

.

  • Recently, Syndicate Bank has achieved a rare feat of opening one million customer accounts in a span of 3 months.
  • Madhukant Giridharlal Sanghvi took over as the CMD of the Bank on 1 Mar 2012.
  • Public sector lender Syndicate Bank on 31,August,2009 said Vasant Golecha Jain has been appointed as chairman and managing director till 29 February 2012.
  • It has also sponsored a regional rural bank in Karnataka called Karnataka Vikas Grameena Bank(formed after amalgamation of four other RRB's) which stands fourth in India.
  • It has introduced five new products namely SyndDoctor, SyndGranite, SyndTextiles, SyndCashew and SyndTransport on its 88TH FOUNDATION DAY, besides opening 88 new branches.

Bank has been conferred "Best Bank Award" amongst all the Banks in the RSETI movement by Sri Jairam Ramesh, Hon’ble Minister for Rural Development, Government of India. Bank has been awarded Banking Excellence Award 2013 for the second best public Bank in overall performance by State forum of Bankers Club Kerala. Bank has been awarded for Record Breaking Performance during Synd LIC Saptah (2 to 7 December 2013) by marketing 15119 policies Highest by any of the Bancassurance Partners during a week by Life Insurance Corporation of India

As part of a Bank’s brand building exercise and to harness its image, Bank has repositioned its Logo by changing the colour combinations. The combinations of Orange, Yellow, Black & White colours give uniqueness to the Logo. The repositioning of logo is aimed at providing a more clear understanding for which the organisation stands for, build loyalty from customers, establishing a brand identity, and also to provide a more contemporary look to its logo in a continuously changing & dynamic business environment.

Bank is recruiting around 3000 young officers to replace retiring officers.

Branch Expansion

Bank has opened 303 branches during the year and reached a mile stone of 3552 branches as of 31 March 2015 (including a branch in London): 1150 Rural, 936 Semi Urban, 783 Urban and 682 Metro Branches. Bank has presence in all the States and Union Territories of the country.

Financial Inclusion

  • Bank has opened 103.844 lakh Basic Savings Bank Deposit Accounts

(BSBDA) as on 31.03.2015. Of which 6.058 lakh accounts were opened during the quarter ended as on 31.03.2015. The balance outstanding in these accounts is Rs. 3611.81 crore as on 31.03.2015 (103.793 lakh accounts).

  • To promote financial literacy in the villages, 14196 financial literacy

programmes were organized during the year upto 31.03.2015, in which 5.74 lakh persons were benefitted.

  • Bank has opened 3496559 number of accounts under PMJDY with a balance

of Rs. 505 crore as at 31.03.2015.

  • 3350302 RuPay Cards have been issued under PMJDY as at 31.03.2015.

Capital Planning

  • Government of India infused Rs.460 crore capital (including premium) in March 2015 by way of preferential allotment of 3,74,74,541 equity shares at issue price of Rs.122.75 per share.
  • Bank has raised Unsecured Non-Convertible Redeemable Basel III compliant Tier II bonds (of 10years) of Rs.1150 crore during FY 2014-15, in two tranches. Rs.750 crore at coupon rate of 8.95% p.a in December 2014 & Rs.400 crore at coupon rate of 8.75% p.a during March 2015.

Corporate Tie Up

Bank has entered into strategic tie-up with the following Corporates:-

  • Bank had signed a Memorandum of Understanding (MOU) with M/s SBI Life Insurance Co. Ltd. on 30 March 2015 for providing Group Life Insurance cover to Education Loan Borrowers of the Bank.
  • Bank has a Corporate Agency tie-up with M/s TATA-AIA Life Insurance Co Ltd. on 30 March 2015 for providing Group Life Insurance cover to Housing

Loan borrowers of the Bank on optional basis.

  • Bank had signed a Memorandum of Understanding (MOU) with LIC for implementation of "Pradhan Mantri Jeevan Jyoti Bima Yojana". In this, LIC will provide life insurance cover of Rs.2 lakh in case of death of the insured person at nominal premium of Rs.330 per annum.

Corporate Strategies

  • To attract retail investors in the pursuit of tax savings and to take advantage of the available opportunity, Bank has recently launched a campaign titled "Save Tax – Get Relaxed" from 1 January – 31 March 2015. This campaign was designed to increase business of the Bank under Core Term Deposits, Life Insurance Policies from LIC of India, ELSS option of Mutual Funds and Mediclaim polices of the Bank.
  • In order to provide impetus for growth and to increase growth in potential branches, Bank has selected 55 STAR branches to tap business in line with corporate vision to achieve a level of Rs. 10 lakh crore businesses by 31.03.2020. All these branches will be provided good amenities at branch premises for customers.
  • Bank had launched a special SIP campaign titled "SYND Mutual Funds –SIP Campaign" with all the nine Mutual Fund Companies, covering all the asset classes i.e. Equity, Debt and Hybrid. The objective of the campaign was to increase the penetration in Mutual Funds business and build the SIP book along with Asset under Management (AUM) for the Bank. 3233 SIP Folios were created with a monthly SIP amount of Rs.34.64 lacs in various schemes.

Corruption Allegations

In August 2014, CBI arrested Bank Chairman and Managing Director S K Jain and 7 others for allegedly accepting a bribe of Rs 50 lakh to enhance the credit limit of some companies.[1]

Government of India, Ministry of Finance, Department of Financial Services vide their letter No. File No. 01/10/2012/ Vig (Part-I) dated 4 August 2014 has placed Shri Sudhir Kumar Jain under deemed suspension with effect from 2 August 2014.

Going Forward

  • Bank is planning to open 355 new branches during FY 2015-16 and also to recruit 5000 personnel in clerical and official cadre. Bank has planned to open 8 "State of the Art Branches" and 100 "Fast Track branches" in the near future.
  • The Bank has opened 37 mid-corporate branches till now. Another 13-14 branches will be opened in the next two to three months.
  • In order to augment long term resources and further strengthening of the Capital Base, Bank proposes to raise Equity Capital by way of Rights Issue /QIP (Domestic/Foreign) / Follow on public issue based on market conditions and approach the market for Basel III compliant additional Tier I bonds and Tier II bonds.

Syndicate Manipal School of Banking

  • Syndicate Manipal School of Banking (SMSB) is a joint venture between Syndicate Bank and Manipal Global Education (MAGE). Syndicate bank recently tied up with MAGE for a Post Graduate diploma course in Banking and Finance. The bank will select the candidates and they will be completing a 1 year PGDBF course. After the successful completion of the course, these candidates will be appointed as a Scale 1 Officer with the bank.

See also

Bank has entered the Mutual Fund segment through distribution tie-up arrangement with 8 Asset Management Companies.

References

  1. ^ "Syndicate Bank CMD Arrested".  

External links

  • Syndicate Bank Official Website
  • Syndicate Bank Services
  • CBI arrests CMD of Syndicate Bank
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