Syndicate Bank
| 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 | www |
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
- 1 March 2015 Data
- 2 Business
- 3 Mergers
- 4 Regional Rural Banks
- 5 In the news
- 6 Branch Expansion
- 7 Financial Inclusion
- 8 Capital Planning
- 9 Corporate Tie Up
- 10 Corporate Strategies
- 11 Corruption Allegations
- 12 Going Forward
- 13 Syndicate Manipal School of Banking
- 14 See also
- 15 References
- 16 External links
March 2015 Data
| Global_Business | ₹461,192 crore (US$69 billion) (31 March 2015) |
| Total Deposits | ₹255,388 crore (US$38 billion) (31 March 2015) |
| Total Advances | ₹205,804 crore (US$31 billion) (31 March 2015) |
| Total Investments | ₹6,933,966 lakh (US$10 billion) (31 March 2015) |
| Total Assets | ₹30,313,525 lakh (US$45 billion) (31 March 2015) |
| Capital | ₹66,206 lakh (US$98 million) (31 March 2015) |
| Reserves & Surplus | ₹1,239,672 lakh (US$1.8 billion) (31 March 2015) |
| Operating Profit | ₹4,007 crore (US$600 million) (31 March 2015) |
| Net Profit | ₹1,523 crore (US$230 million) (31 March 2015) |
| Domestic Deposits | ₹225,402 crore (US$33 billion) (31 March 2015) |
| Domestic CASA | ₹63,671 crore (US$9.5 billion) (31 March 2015) |
| Domestic Advances | ₹165,153 crore (US$25 billion) (31 March 2015) |
| Global Gross NPA | ₹6,442 crore (US$960 million) (31 March 2015) |
| Global Net NPA | ₹3,843 crore (US$570 million) (31 March 2015) |
| Ret'n Assets(%)Annualzd | 0.58% (31 March 2015) |
| Book Value/Share | ₹197.24 crore (US$29 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 |
| International Business Centres | 2 |
| ATM | 3570 as on 20/08/2015 |
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
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Mergers
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 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.
- 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
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