A SUMMER TRAINING PROJECT REPORT

ON
ANALYSIS OF RETAIL FINANCING IN BANKING SECTOR
WITH SPECIAL REFERANCE TO SYNDICATE BANK

FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT
FOR THE AWARD OF
MASTER OF BUSINESS ADMINISTRATION
Submitted To U!de" t#e Guid$!%e o&

M"' MANISH SINGH M"' P' K' MITTAL

(Faculty of Management) (Chief Manager)
Submitted B(
RAJAN )ERMA
MBA *+,*-,.
ROLLNO',*/0+0++./
LUCKNOW MODEL INSTITUTIONS OF MANAGEMENT1LUCKNOW
APPRO)ED UPTU1 GO)T' OF IND2A
LUCKNOW' 3U'P'4

Roll No. 1267070046
1
Roll No. 1267070046
2
CERTIFICATE
Certified that this project report titled ANALYSIS OF RETAIL FINANCING
IN BANKING SECTOR WITH SPECIAL REFERANCE TO SYNDICATE BANK
5,*/0+0++./6 who carried out the research under my supervision. Certified further that to the
!est of my "nowledge the wor# reported herein does not form part of any other project or
dissertation on the !asis of which a degree or award was conferred on an earlier occasion on this
or any other candidates.
$%&'(C) *+,-( .(/- &F ).( -($/%)M(0)
M"'MANISH SINGH M"'MANISH SINGH
Roll No. 1267070046
1
/C"0&23(-*(M(0)
4efore we get into thic# of things , would li#e to add a few words of appreciation for the
people who have !een a part of this project right from its inception. )he writing of this project
has !een one of the significant academic challenges , have faced and without the support
patience and guidance of the people involved this tas# would not have !een completed. ,t is to
them , owe my deepest gratitude.
,t gives me immense pleasure in presenting this report on /0/356,6 &F %()/,3
F,0/0C,0* ,0 4/0",0* 6(C)&% 2,). 6$(C,/3 %(F(%/0C( )& 650-,C/)(
4/0"7.
,t has !een my privilege to have a team of guide who has assisted me from the commencement
of this project. )he success of this report is a result of sheer hard wor# and determination put in
!y me with the help of my project guide. , here!y ta#e this opportunity to add a special note of
than#s for M"'MANISH SINGH1 who undertoo# to act as my mentor despite his many other
academic and professional commitments. .is wisdom #nowledge and commitment to the
highest standards inspired and motivated me. 2ithout his insight support and energy this
project wouldn8t have #ic#9started and neither would have reached fruitfulness.
, also feel heartiest sense of o!ligation to M"' P'K Mitt$7 chief manager who helped me
in collection of data : resource material : also in its processing as well as in drafting
manuscript. )he report is dedicated to all those people who helped me while doing this project.
RAJAN )ERMA
MBA II!d (e$"
LMIM 1LUCKNOW
Roll No. 1267070046
;
PREFACE
Master of 4usiness /dministration (M4/) $rogram is one of the most reputed professional
courses in the field of management. )his course includes !oth theory : its applications as its
content of Curriculum. )he vocational training is an integral part of the curriculum and its
purpose is to provide the practical e<posure of !usiness world in the changing scenario. ,n this
way it helps the student in development of practical s#ills and analytical thin#ing process. ,t
ma#es more aware a!out the perceptions and tastes of the people of the corporate world. )hus it
helps in molding the students according to the re=uirements of the mar#et
(ach student is re=uired to complete training in his or her field of interest after the completion of
his or her 2
nd
semester e<amination. )he purpose of this training is to e<pose the students on
practical and research front of his or her area of interest. )he training gives a uni=ue e<perience
to aspirants who can visuali>e things what they have !een taught in classroom.
, was fortunate enough to have the opportunity to do a research project &n /0/356,6 &F
%()/,3 F,0/0C,0* ,0 4/0",0* 6(C)&% 2,). 6$(C,/3 %(F(%/0C( )&
650-,C/)( 4/0"7.
/s a complementary to training every student has to prepare and su!mit a report. ,t is an
attempt to present practical #nowledge : o!servation gathered during the project.
RAJAN )ERMA
MBA II!d (e$"
LMIM 1LUCKNOW


Roll No. 1267070046
?
INDE8
SRNO.
TOPICS
ACKNOWLEDGEMENT
PREFACE
PAGE NO
CHAPTER-,
,' IINDUSTRY PROFILE 9-,,
*' IINDIAN BANKING STRUCTURE ,*-,:
;' BANKING AND FINANCIAL INSTITUTIONS ,9-;;
CHAPTER-*
.' SYNDICATE BANK HISTORY
;.-;/
<' MCKINSEY=S 0S FRAMEWORK AND SWOT ;0-.0
/' PRODUCTS AND SER)ICES PROFILE .:-0<
CHAPTER-;
0'
RESEARCH METHODOLOGY
00-:+
:' ANALYSIS OF FINANCIAL PERFORMANCE

:,-9+
CHAPTER-.
9' FINDINGS 9*
,+'
CONCLUSION
9<
,,' BIBLIOGRAPHY 9.
,*'
ANNE8URE
9<-99
Roll No. 1267070046
@
E>e%uti?e @umm$"(
)he ,ndian retail finance mar#et has witnessed a sea change during the last few years. (arlier
,ndians were averse to the concept of availing credit to fund their purchases and !elieved in the
concept of saving and then spending. .owever today there are a variety of consumer credit
products !eing literally forced upon consumers !y over>ealous lenders who have reali>ed the
huge latent potential of the !urgeoning ,ndian consumers. )his has gradually led to a shift in the
psychology of ,ndian consumers who no longer consider credit as a social stigma and are more
than willing to fulfill their aspirations through the credit mechanism.
+ntil 1A years ago mainly non9!an#ing finance companies (04FCs) and %etail finance
companies (.FCs) catered to the nascent ,ndian retail finance mar#et while commercial !an#s
focused on corporate lending. Commercial !an#s instead of lending to retail consumers directly
would provide funds to 04FCs and .FCs which in turn would lend to retail consumers. )he
mid BCAs saw several 04FCs mushrooming to e<ploit the huge potential of this mar#et. /s
competition intensified many 04FCs in order to capture a share of this retail mar#et pie
ignored the ris#s associated with the retail lending !usiness and landed up !urning their fingers.
Conse=uently the late BCAs and early 2AAA witnessed a num!er of 04FCs either shutting shop or
curtailing their operations.
)his report focuses on the retail asset finance mar#et which comprises mainly loans for %etail
cars and utility vehicles (auto finance) commercial vehicles and two9wheelers. )he retail asset
finance mar#et has grown !etween 1CCD9CC and 2AA19A; at an annuali>ed rate of 1? per cent
(dis!ursements). )he high growth rate !etween 1CCD9CC and 2AA19A; can !e attri!uted to the fact
that ? years ago the retail finance mar#et was in its infancy with few people availing credit to
fund their purchases. *oing forward C%,6 ,0F/C e<pects the retail finance mar#et to grow at an
annual rate of 1D per cent from %s 1211 !illion in 2AA19A; to %s 2EC2 !illion in 2A12911.
Roll No. 1267070046
E
Roll No. 1267070046
D
INDUSTRY PROFILE
BANK
/ !an# is a !usiness center that deals in financial services. / !an# is a place where your money is
safe9loc#ed and a secure place to dispose off your earnings. 4an#ing service in general includes
receiving deposit money lending money and processing transactions. )he history of origination
of !an# goes !ac# a long way. 6ince then !an#s have influenced the economy of countries. ,ndia
has a num!er of !oth government underta#en !an#s as well as private ones.
Me$!i!A o& B$!Bi!A
/ !an# is an institution which deals in money and credit. )hus !an# is an intermediary which
handles other peopleFs money !oth for their advantage and to its own profit. 4ut !an# is not
merely a trader in money !ut also an important manufacturer of money. ,n other words a !an# is
a factory of credit.
De&i!itio! o& B$!Bi!A
/ccording to 6ection ?(1)(!) 4an#ing means accepting for the purpose of lending or investing
of deposits of money from the pu!lic repaya!le on demand or otherwise and withdrawal !y
che=ues draft and order or otherwise7.
De&i!itio! o& B$!Bi!A ComC$!(
6ection ?(1)(c) defines !an#ing company as /ny company which transacts the !usiness of
!an#ing in ,ndia7.
Fe$tu"e@ o& B$!Bi!A
)he following are the !asic characteristics of 4an#ingG
De$7i!A i! Mo!e( )he !an#s accept deposits from the pu!lic and advancing them as
loans to the needy people. )he deposits may !e different types Hcurrent fi<ed savings etc.
accounts. )he deposits are accepted on various terms and conditions.
Roll No. 1267070046
C
DeCo@it@ mu@t be Dit#d"$D$7 )he deposits made !y the pu!lic can !e withdrawal !y
che=ues draft or otherwise i.e. !an# issue and pay che=ues. )he deposits are usually
withdrawal on demand.
De$7i!A Dit# %"edit )he !an# are the institutions that can create credit i.e. creation of
additional money for lending. )hus creation of credit7 is the uni=ue feature of !an#ing.
Comme"%i$7 i! !$tu"e 6ince all the !an#ing functions are carried on with the aim of
ma#ing profit it is regarded as a commercial institution.
N$tu"e o& $Ae!t 4esides the !asic functions of accepting deposits and lending money as
loans !an# possesses the character of an agent !ecause of its various agency services.
Cu""e!t @%e!$"io
Currently (2A11) overall !an#ing in ,ndia is considered as fairly mature in terms of supply
product range and reach9even though reach in rural ,ndia still remains a challenge for the private
sector and foreign !an#s. (ven in terms of =uality of assets and capital ade=uacy ,ndian !an#s
are considered to have clean strong and transparent !alance sheets9as compared to other !an#s in
compara!le economies in its region. )he %eserve 4an# of ,ndia is an autonomous !ody with
minimal pressure from the government. )he stated policy of the 4an# on the ,ndian %upee is to
manage volatility9without any stated e<change rate9and this has mostly !een true.
2ith the growth in the ,ndian economy e<pected to !e strong for =uite some time9especially in its
services sector the demand for !an#ing services9especially retail !an#ing mortgages and
investment services are e<pected to !e strong. M:/s ta#eovers asset sales and much more
action (as it is unraveling in China) will happen on this front in ,ndia.
Currently ,ndia has DD scheduled commercial !an#s (6C4s) 9 2D pu!lic sector !an#s (that is with
the *overnment of ,ndia holding a sta#e) 2C private !an#s (these do not have government sta#eI
they may !e pu!licly listed and traded on stoc# e<changes) and 11 foreign !an#s. )hey have a
com!ined networ# of over ?1AAA !ranches and 1EAAA /)Ms. /ccording to a report !y ,C%/
Roll No. 1267070046
1A
3imited a rating agency the pu!lic sector !an#s hold over E? percent of total assets of the
!an#ing industry with the private and foreign !an#s holding 1D.2J and @.?J respectively.
/s far as the present scenario is concerned the !an#ing industry in ,ndia is in a transition phase.
)he $u!lic 6ector 4an#s ($64s) which are the foundation of the ,ndian 4an#ing system account
for more than ED per cent of total !an#ing industry assets. +nfortunately they are !urdened with
e<cessive 0on $erforming assets (0$/s) massive manpower and lac# of modern technology. &n
the other hand the $rivate 6ector 4an#s are witnessing immense progress. )hey are leaders in
,nternet !an#ing mo!ile !an#ing phone !an#ing /)Ms. &n the other hand the $u!lic 6ector
4an#s are still facing the pro!lem of unhappy employees. )here has !een a decrease of 2A
percent in the employee strength of the private sector in the wa#e of the Koluntary %etirement
6chemes (K%6). /s far as foreign !an#s are concerned they are li#ely to succeed in ,ndia.
/0L *rindlays 4an# /409/M%& 4an# /merican (<press 4an# 3td Citi!an# etc are some
foreign !an#s operating in ,ndia
Di$A"$m S#oD@ t#e B$!Bi!A St"u%tu"e i! I!di$
Roll No. 1267070046
11
%eserve 4an# of ,ndia
(%4,)
6cheduled Commercial
4an#s
6cheduled Co Hoperative
4an#s
$rivate
6ector
4an#s
$u!lic
6ector
4an#s
Foreign
4an#s
in ,ndia
%egional
%ural
4an#s in
,ndia
6cheduled
+r!an
Cooperative
4an#s
6cheduled
6tate
Cooperative
4an#s
0ationali>ed
4an#s
64, :
,ts
/ssociates
&ld
$rivate
4an#s
0ew
$rivate
4an#s
I!di$! B$!Bi!A St"u%tu"eG
)he !an#ing system in ,ndia can !e !roadly divided into three categories vi>. the central !an# of
the country #nown as the %eserve 4an# of ,ndia (%4,) the commercial !an#s and the co H
operative !an#s. )he %eserve 4an# of ,ndia is the supreme monetary and !an#ing authority in the
country and has the responsi!ility to control the !an#ing system in the country. ,t #eeps the
reserves of all scheduled !an#s and hence is #nown as the %eserve 4an#7. 4elow figure shows
the structure of ,ndian !an#ing.
S%#edu7ed $!d No! ES%#edu7ed B$!B@
+nder the %eserve 4an# of ,ndia /ct 1C1; !an#s were classified as scheduled !an#s and non H
scheduled !an#s. )he scheduled !an#s are those which are entered in the 6econd 6chedule of
%4, /ct 1C1;. 6uch !an#s are those which have a paid Hup capital and reserves of an aggregate
value of not less than %s. ? la#hs and which satisfy %4, that their affairs are carried out in the
interests of their depositors. /ll commercial !an#s H,ndian and foreign regional rural !an#s and
6tate co Hoperative !an#s Hare scheduled !an#s. 0on H6cheduled !an#s are those which have not
!een include in the 6econd 6chedule of %4, /ct 1C1;. /t present there are only three non H
scheduled !an#s in the country. 6cheduled !an#s are divided into Commercial 4an#s and Co H
operative 4an#s. Commercial !an#s are !ased on profit while co Hoperative !an#s are !ased on
co Hoperative principle.
Commercial !an#s have !een in e<istence for many decades. )hey mo!ili>e savings in ur!an
areas and ma#e them availa!le to large and small industrial and trading units mainly for wor#ing
capital re=uirements. /fter 1C@C commercial !an#s are !roadly classified into nationali>ed or
pu!lic sector !an#s and private sector !an#s. )he 6tate 4an# of ,ndia and its /ssociates !an#s
along with another 2A !an#s are the pu!lic sector !an#s. )he private sector !an#s include a small
num!er of ,ndian scheduled !an#s which have not !een nationali>ed and !ranches of foreign
!an#s operating in ,ndia Hcommonly #nown as foreign e<change !an#s. )he %egional %ural
4an#s (%%4Fs) came into e<istence since the middle of 1CEAs with the specific o!jective of
providing credit and deposit facilities particularly to the small an marginal farmers agricultural
la!orers and artisans and small entrepreneurs. )he %egional %ural 4an#s have the responsi!ility
to develop agriculture trade commerce and industry in the rural areas. )he %%4Fs are essentially
commercial !an#s !ut their area of operation is limited to a district.
Roll No. 1267070046
12
B$!Bi!A i! I!di$
4an#ing in ,ndia originated in the first decade of 1Dth century with )he *eneral 4an# of ,ndia
coming into e<istence in 1ED@. )his was followed !y 4an# of .industan. 4oth these !an#s are
now defunct. )he oldest !an# in e<istence in ,ndia is the 6tate 4an# of ,ndia !eing esta!lished as
M)he 4an# of 4engalM in Calcutta in 'une 1DA@. / couple of decades later foreign !an#s li#e
Credit 3yonnais started their Calcutta operations in the 1D?As. /t that point of time Calcutta was
the most active trading port mainly due to the trade of the 4ritish (mpire and due to which
!an#ing activity too# roots there and prospered. )he first fully ,ndian owned !an# was the
/llaha!ad 4an# which was esta!lished in 1D@?.4y the 1CAAs the mar#et e<panded with the
esta!lishment of !an#s such as $unja! 0ational 4an# in 1DC? in 3ahore and 4an# of ,ndia in
1CA@ in Mum!ai 9 !oth of which were founded under private ownership. )he %eserve 4an# of
,ndia formally too# on the responsi!ility of regulating the ,ndian !an#ing sector from 1C1?. /fter
,ndia8s independence in 1C;E the %eserve 4an# was nationali>ed and given !roader powers.
)he ,ndian 4an#ing industry which is governed !y the 4an#ing %egulation /ct of ,ndia 1C;C
can !e !roadly classified into two major categories non9scheduled !an#s and scheduled !an#s.
6cheduled !an#s comprise commercial !an#s and the co9operative !an#s. ,n terms of ownership
commercial !an#s can !e further grouped into nationali>ed !an#s the 6tate 4an# of ,ndia and its
group !an#s regional rural !an#s and private sector !an#s (the oldN new domestic and foreign).
)hese !an#s have over @EAAA !ranches spread across the country.
St$Ae@ o& de?e7oCme!t o& B$!B@ i! I!di$
(arly history
-uring the wars
$ost independence
0ationali>ation
3i!erali>ation
Current scenario
Roll No. 1267070046
11
E$"7( #i@to"(
/t the end of late91Dth century there were hardly any !an# in ,ndia in the modern sense of the
term. /t the time of the /merican Civil 2ar a void was created as the supply of cotton to
3ancashire stopped from the /mericas. 6ome !an#s were opened at that time which functioned as
entities to finance industry including speculative trades in cotton. 2ith large e<posure to
speculative ventures most of the !an#s opened in ,ndia during that period could not survive and
failed. )he depositors lost money and lost interest in #eeping deposits with !an#s. 6u!se=uently
!an#ing in ,ndia remained the e<clusive domain of (uropeans for ne<t several decades until the
!eginning of the 2Ath century.
/t the !eginning of the 2Ath century ,ndian economy was passing through a relative period of
sta!ility. /round five decades have elapsed since the ,ndia8s First war of ,ndependence and the
social industrial and other infrastructure have developed. /t that time there were very small
!an#s operated !y ,ndians and most of them were owned and operated !y particular
communities. )he !an#ing in ,ndia was controlled and dominated !y the presidency !an#s
namely the 4an# of 4om!ay the 4an# of 4engal and the 4an# of Madras 9 which later on
merged to form the ,mperial 4an# of ,ndia and ,mperial 4an# of ,ndia upon ,ndia8s
independence was renamed the 6tate 4an# of ,ndia. )here were also some e<change !an#s as
also a num!er of ,ndian joint stoc# !an#s. /ll these !an#s operated in different segments of the
economy. )he presidency !an#s were li#e the central !an#s and discharged most of the functions
of central !an#s. )hey were esta!lished under charters from the 4ritish (ast ,ndia Company. )he
e<change !an#s mostly owned !y the (uropeans concentrated on financing of foreign trade.
,ndian joint stoc# !an#s were generally undercapitali>ed and lac#ed the e<perience and maturity
to compete with the presidency !an#s and the e<change !an#s. )here was potential for many
new !an#s as the economy was growing. 3ord Cur>on had o!served then in the conte<t of ,ndian
!an#ingG M,n respect of !an#ing it seems we are !ehind the times. 2e are li#e some old fashioned
sailing ship divided !y solid wooden !ul#heads into separate and cum!ersome compartments.M
+nder these circumstances many ,ndians came forward to set up !an#s and many !an#s were set
up at that time and a num!er of them set up around that time continued to survive and prosper
even now li#e 4an# of ,ndia and Corporation 4an# ,ndian 4an# 4an# of 4aroda 6yndicate
4an# and Canara 4an#.
Roll No. 1267070046
1;
Du"i!A t#e W$"@
)he period during the First 2orld 2ar (1C1;91C1D) through the end of the 6econd 2orld 2ar
(1C1C91C;?) and two years thereafter until the independence of ,ndia were challenging for the
,ndian !an#ing. )he years of the First 2orld 2ar were tur!ulent and it too# toll of many !an#s
which simply collapsed despite the ,ndian economy gaining indirect !oost due to war9related
economic activities. /t least C; !an#s in ,ndia failed during the years 1C11 to 1C1D as indicated
in the following ta!leG
5ears 0o. of 4an#s that failed /uthori>ed capital (%s. ,n la#h) $aid up capital (%s. ,n la#h)
1C11 12 2E; 1?
1C1; ;2 E1A 1AC
1C1? 11 ?@ ?
1C1@ 11 211 ;
1C1E C E@ 2?
1C1D E 2AC 1
Po@t-i!deCe!de!%e
)he partition of ,ndia in 1C;E had adversely impacted the economies of $unja! and 2est 4engal
and !an#ing activities had remained paraly>ed for months. ,ndia8s independence mar#ed the end
of a regime of the 3aisse>9faire for the ,ndian !an#ing. )he *overnment of ,ndia initiated
measures to play an active role in the economic life of the nation and the ,ndustrial $olicy
%esolution adopted !y the government in 1C;D envisaged a mi<ed economy. )his resulted into
greater involvement of the state in different segments of the economy including !an#ing and
finance. )he major steps to regulate !an#ing includedG
,n 1C;D the %eserve 4an# of ,ndia ,ndia8s central !an#ing authority was nationali>ed and
it !ecame an institution owned !y the *overnment of ,ndia.
,n 1C;C the 4an#ing %egulation /ct was enacted which empowered the %eserve 4an# of
,ndia (%4,) Mto regulate control and inspect the !an#s in ,ndia.M
Roll No. 1267070046
1?
)he 4an#ing %egulation /ct also provided that no new !an# or !ranch of an e<isting !an#
may !e opened without a license from the %4, and no two !an#s could have common
directors.
.owever despite these provisions control and regulations !an#s in ,ndia e<cept the 6tate 4an#
of ,ndia continued to !e owned and operated !y private persons. )his changed with the
nationali>ation of major !an#s in ,ndia on 1Cth 'uly 1C@C.
N$tio!$7iF$tio!
)he nationali>ation of 1; major !an#s with deposits of %s. ?A crores or more in 'uly 1C@C was a
historic7 and momentous event in the history of ,ndia. 6mall industrial and !usiness units are
continuously and consistently ignored and starved of funds even though the *overnment policy
was to encourage small tiny and cottage and village industries. /gricultural credit was never
seriously considered !y !an#s. $u!lic funds were used to support anti Hsocial and illegal
activities against the interest of the general pu!lic. ,t was for these reasons that the *overnment
too# over 1; top commercial !an#s in 'uly 1C@C. ,n 1CDA again the *overnment too# over
another @ commercial !an#s Haltogether there are 2A nationali>ed !an#s. )hese are in addition to
the 6tate 4an# of ,ndia and its associate !an#s Hcommonly called the 6tate 4an# of ,ndia *roup
Hwhich was ta#en over in 1C??.
B"$!%# E>C$!@io!G
,nitially the !an#s were conservative and opened !ranches mainly in metropolitan cities and
other major cities. 4ranch e<pansion gained momentum after the nationali>ation of major
commercial !an#s and the introduction of the 3ead 4an# 6cheme. )a!le 0o. A1 shows the
progress of !ranch e<pansion of commercial !an#sG
B"$!%# e>C$!@io! o& $77 %omme"%i$7 b$!B@
T$b7e No' +,'
/s on
'une 1A
)otal 0o. of
4ranches
%ural
4ranches
%ural 4ranches as
J of the total.
$opulation per !an#
office
Roll No. 1267070046
1@
1CDC
2AA1
2A12
D2@A
@A@?A
1D@A
12E?A
122EA
22
?;
;D
@1DAA
1;1?A
1?AAA
DeCo@it Mobi7iF$tio!
$lanned economic development deficit financing and increase in currency issue have led to
increase in !an# deposits. /t the same time !an#s have contri!uted greatly to the development of
!an#ing ha!it among people through sustained pu!licity e<tensive !ranch !an#ing and relatively
prompt service to the deposit mo!ili>ation due partly to the e<pansion of a networ# of !an#
!ranches and partly to the incentives given to savers. )he trend of increase in deposits and credit
of scheduled !an#s is given in )a!le 0o. A2.
T$b7e No' +*'
5ear 0o. of reporting 4an#s 4an# deposits
(%s. Crores).
4an# credit
(%s. Crores).
1C?A 9?1
1CEA 9E1
1CCA 9C1
2AAA 92AA1
2A11 92A12
;1A
E1
2E1
2CE
2DD
D2A
?C1A
1C2?;A
C@2@2A
1?A1C1A
?DA
;@CA
11@1AA
?11;1A
D1?1DA
6ince 1C?A 9?1 deposit mo!ili>ations and supply of credit !y !an#s were growing at a rapid rate
particularly after !an# nationali>ation in 1C@C.
*rowth of deposits in ,ndia of all scheduled commercial !an#s was as followsG
1C?1 91CE1 (2A years) 9EAAJ or E times.
Roll No. 1267070046
1E
1CE1 91CC1 (2A years) 912@AJ or 12.@ times.
1CC1 92A12 (12 years) 9EDAJ or E.D times.
Libe"$7iF$tio!
,n the early 1CCAs the then 0arasimha %ao government em!ar#ed on a policy of li!eralisation
and gave licences to a small num!er of private !an#s which came to !e #nown as 0ew
*eneration tech9savvy !an#s which included !an#s such as +), 4an# (the first of such new
generation !an#s to !e set up) ,C,C, 4an# and .-FC 4an#. )his move along with the rapid
growth in the economy of ,ndia #ic#started the !an#ing sector in ,ndia which has seen rapid
growth with strong contri!ution from all the three sectors of !an#s namely government !an#s
private !an#s and foreign !an#s.
)he ne<t stage for the ,ndian !an#ing has !een setup with the proposed rela<ation in the norms
for Foreign -irect ,nvestment where all Foreign ,nvestors in !an#s may !e given voting rights
which could e<ceed the present cap of 1AJat present it has gone up to ;CJ with some
restrictions.
)he new policy shoo# the 4an#ing sector in ,ndia completely. 4an#ers till this time were used
to the ;9@9; method (4orrow at ;J 3end at @JI*o home at ;) of functioning. )he new wave
ushered in a modern outloo# and tech9savvy methods of wor#ing for traditional !an#s./ll this led
to the retail !oom in ,ndia. $eople not just demanded more from their !an#s !ut also received
more.
Roll No. 1267070046
1D
BANKING G FINANCIAL INSTITUTIONS

)he ,ndian consumer is fast changing his ha!its !orrowing money to !uy the products
he wants not content with !uying what he can afford. )he resultant consumer !oom is what
mar#et strategists e<plain as the #ey to the success of the ,ndian consumer finance mar#et.
Consumer finance today is a win9win system in which everyone stands to gain. For the ,ndian
consumer it is an opportunity to upgrade his standard of living right now instead of waiting for
years for his savings to accumulate. For manufacturers it stimulates demand and lowers
inventory. For middlemen it8s a sales !oosting device. For players of consumer finance it8s a
means of profit generation.
)he !uy9now9pay9later culture is still fairly nascent in ,ndia evolving through various forms li#e
consumer lending consumer credit consumer loans friendly and family !orrowings #itties
daily payment schemes etc.
)he !asic underpinning of consumer financing is that the consumers8 present spending ha!its tend
to !e geared to e<pectations of future income. )hey are losing their fear of !orrowing riding
surf!oards of consumer finance.
Ret$i7 b$!Bi!A
%etail !an#ing is =uite !road in nature 9 it refers to the dealing of commercial !an#s with
individual customers !oth on lia!ilities and assets sides of the !alance sheet. Fi<ed current N
savings accounts on the lia!ilities sideI and mortgages loans (e.g. personal %etail auto and
Roll No. 1267070046
1C
educational) on the assets side are the more important of the products offered !y !an#s. %elated
ancillary services include credit cards or depository services. )odayFs retail !an#ing sector is
characteri>ed !y three !asic characteristicsG
1O Multiple products (deposits credit cards insurance investments and securities)I
2O Multiple channels of distri!ution (call centre !ranch ,nternet and #ios#)I and
1O Multiple customer groups (consumer small !usiness and corporate).
Ret$i7 b$!Bi!A i! I!di$
%etail !an#ing in ,ndia is not a new phenomenon. ,t has always !een prevalent in ,ndia in various
forms. For the last few years it has !ecome synonymous with mainstream !an#ing for many
!an#s.
)he typical products offered in the ,ndian retail !an#ing segment are %etail loans consumption
loans for purchase of dura!les auto loans credit cards and educational loans. )he loans are
mar#eted under attractive !rand names to differentiate the products offered !y different !an#s. /s
the %eport on )rend and $rogress of ,ndia 2AA19A; has shown that the loan values of these retail
lending typically range !etween %s.2A AAA to %s.1AA la#h.
2ithin the retail segment the %etail loans had the least gross asset impairment. ,n fact retailing
ma#e ample !usiness sense in the !an#ing sector.
2hile new generation private sector !an#s have !een a!le to create a niche in this regard the
pu!lic sector !an#s have not lagged !ehind. 3everaging their vast !ranch networ# and outreach
pu!lic sector !an#s have aggressively forayed to garner a larger slice of the retail pie. 4y
international standards however there is still much scope for retail !an#ing in ,ndia. /fter all
retail loans constitute less than seven per cent of *-$ in ,ndia vis9P9vis a!out 1? per cent for
other /sian economies 9 6outh "orea (?? per cent) )aiwan (?2 per cent) Malaysia (11 per cent)
and )hailand (1D per cent). /s retail !an#ing in ,ndia is still growing from modest !ase there is a
li#elihood that the growth num!ers seem to get somewhat e<aggerated. &ne thus has to e<ercise
caution is interpreting the growth of retail !an#ing in ,ndia.
Retail thrust in India
Roll No. 1267070046
2A
4ac#drop of poor credit ta#e off !y !ig corporate 3ending to !ig corporate and
creating loan assets7 is no longer the name of game
higher middle class with rising -isposa!le ,ncome changing life style aspiration
and willingness to spend more for lu<uries
3oan interest rates and prudential norms
3ending to corporate is more ris#y in the view of uncertainty pertaining to
economic environment
6cope for su!sential development of funds which offer !etter return trade off and
well diversify credit portfolio
.igh profita!ility and history of low 0$/Fs
,ncreased *eographic presence of financers
Ot#e"@ A"oDt# D"i?e"@
(conomic prosperity and the conse=uent increase in purchasing power has given a fillip to
a consumer !oom. 0ote that during the 1A years after 1CC2 ,ndia8s economy grew at an
average rate of @.D percent and continues to grow at the almost the same rate H not many
countries in the world match this performance.
Changing consumer demographics indicate vast potential for growth in consumption !oth
=ualitatively and =uantitatively. ,ndia is one of the countries having highest proportion
(EAJ) of the population !elow 1? years of age (young population). )he 4%,C report of
the *oldman96achs which predicted a !right future for 4ra>il %ussia ,ndia and China
mentioned ,ndian demographic advantage as an important positive factor for ,ndia.
)echnological factors played a major role. Convenience !an#ing in the form of de!it
cards internet and phone9!an#ing anywhere and anytime !an#ing has attracted many
new customers into the !an#ing field. )echnological innovations relating to increasing use
of credit N de!it cards /)Ms direct de!its and phone !an#ing has contri!uted to the
growth of retail !an#ing in ,ndia.
Roll No. 1267070046
21
)reasury income of the !an#s which had strengthened the !ottom lines of !an#s for the
past few years has !een on the decline during the last two years. ,n such a scenario retail
!usiness provides a good vehicle of profit ma<imi>ation.
-ecline in interest rates have also contri!uted to the growth of retail credit !y generating
the demand for such credit.
Comprehensives range of financial products in retail banking
-eposit products
%esidential Mortgage loans
Credit cards
/uto finance
3oan for ,$&
3oan for !uying Mutual funds
,nvestment advisory services
$ersonal 3oans
Consumer dura!le 3oans
-e!it cards
4ill payment services
3oan against (=uity shares
C"edit %$"d@ i! I!di$
2hile usage of cards !y customers of !an#s in ,ndia has !een in vogue since the mid91CDAs it is
only since the early 1CCAs that the mar#et had witnessed a =uantum jump. )he total num!er of
cards issued !y ;2 !an#s and outstanding increased from 2.@C crore as on -ecem!er 2AA1 to
;.11 crore as on -ecem!er 2A12. ,n view of this ever increasing role of credit cards a 2or#ing
*roup was set up for regulatory mechanism for cards. )he terms of reference of the 2or#ing
*roup were fairly !road and the *roup was to loo# into the type of regulatory measures that are
to !e introduced for plastic cards (credit de!it and smart cards) for encouraging their growth in a
safe secure and efficient manner as also to ta#e care of the !est customer practices and
Roll No. 1267070046
22
grievances redressal mechanism for the card users. )he %eserve 4an# has !een receiving a
num!er of complaints regarding various undesira!le practices !y credit card issuing institutions
and their agents. 6ome of them areG
+nsolicited calls to mem!ers of the pu!lic !y card issuing !an#sN direct selling agents
pressuri>ing them to apply for credit card.
Communicating misleading N wrong information regarding credit cards regarding
conditions for issue amount of service chargesN waiver of fees giftsNpri>es.
6ending credit cards to persons who have not applied for them N activating unsolicited
cards without the approval of the recipient.
Charging very high interest rates Nservice charges.
3ac# of transparency in disclosing feesNchargesNpenalties. 0on9disclosure of detailed
!illing procedure.
Ret$i7 %"edit i! I!di$
,n view of its !ac#ward and forward lin#ages with other sectors of the economy %etail finance in
developing countries is seen as a social good. ,n ,ndia growth of %etail finance segment has
accelerated in recent years. 6everal supporting policy measures (li#e ta< !enefits) and the
supervisory incentives instituted had played a major role in this mar#et.
%etail credit has increased su!stantially over last few years !ut from a very low !ase. -uring the
period 1CC19C; outstanding %etail loans !y scheduled commercial !an#s and %etail finance
companies grew at a trend rate of 21 per cent. )he share of %etail loans in total non9food credit of
scheduled commercial !an#s has increased from a!out 1 per cent in 1CC29C1 to a!out E per cent
in 2AA19A;. %ecent data reveal that non9priority sector %etail loans outstanding as on Fe!ruary
1D 2A12 were around %s. E; thousand crore which is however only D.A per cent of the gross
!an# credit. /s already pointed out direct %etail loans up to %s. 1? la#h irrespective of the
location now =ualify as priority sector lendingI %etail loans are understood to form a large
component of such lending. ,n addition %etail credit is also !eing provided !y %etail finance
companies which in turn are also receiving some !an# finance.
)hus from miniscule amounts the e<posure of the !an#ing sector to %etail loans has gone up.
+nli#e many other countries asset impairment on account of %etail finance constitutes a very
small portion. .owever with growing competition in the %etail finance mar#etI there has !een a
Roll No. 1267070046
21
growing concern over its li#ely impact on the asset =uality. 2hile no immediate financial
sta!ility concerns e<ist there is a need to put in place appropriate ris# management systems
strengthen internal control procedures and also improve regulatory oversight in this area. 4an#s
also need to monitor their e<posure and the credit =uality. ,n a fiercely competitive mar#et there
may !e some temptation to slac#en the loan scrutiny procedures and these needs to !e severely
chec#ed.
.aving delineated the !road contours of retail !an#ing in ,ndia let me now come to its
opportunities and challenges.
Ret$i7 &i!$!%e #o7d@ t#e Be( &o" @u@t$i!ed 7o!A-te"m A"oDt# due to 7oD
Ce!et"$tio! 7e?e7@
/mong the major asset finance mar#ets %etail finance has the lowest penetration levelsI also
%etail finance has the highest potential demand among all retail finance mar#ets. )he tic#et si>e
in %etail finance is relatively higher than the tic#et si>e in other segments li#e auto finance and
two9wheeler financeI hence an increase in the penetration of %etail finance will have a si>ea!le
impact on the growth of the retail asset finance mar#et.
Currently over CA per cent of the !orrowers availing %etail finance are salaried employees and
the !alance are self9employed professionals li#e doctors chartered accountant architects etc.
.owever financiers have !een sceptical in lending to the self9employed !usiness class due to the
difficulty in accessing their credit worthiness. )here is a huge potential demand for %etail finance
from this segment and C%,6 ,0F/C !elieves that if the lenders are a!le to specifically design
products to address the non9salaried !orrowers the growth in %etail finance will !e much higher
than C%,6 ,0F/C8s estimates !ased on the current product offerings. Currently C%,6 ,0F/C
e<pects the %etail finance mar#et to record an annual growth rate of 1D.D per cent till 2AA19A;
to reach %s 11;E !illion from %s ?@C !illion in 2A11912.
G"oDt# d"i?e"@ &o" t#e Ret$i7 &i!$!%e i!du@t"(
Favora!le socio9demographic changes developments in the %etail finance mar#et and positive
regulatory measures lead us to estimate a ro!ust growth for the %etail and %etail finance sector in
,ndia.
So%io-demoA"$C#i% %#$!Ae@
,ncrease in the percentage of population in the 2?9;; age groups.
Roll No. 1267070046
2;
Contraction in the si>e of households.
%ise in the ur!an middle class population.
*reater accepta!ility of credit.
6hift towards owned houses as compared to rented houses
,ncreasing aspiration to own larger houses
-eclining proportion of cash component in sale transactions
De?e7oCme!t@ i! t#e Ret$i7 &i!$!%e m$"Bet
-ecline in interest rates
,ncrease in loan tenures
,ncrease in loan9to9value ratio (3)K)
%ise in the installment9to9income ratio (,,%)
ReAu7$to"( @teC@ $idi!A t#e Ret$i7 &i!$!%e i!du@t"(
Fiscal incentives
%egulari>ation of land records
$riority 6ector status for %etail loans
ImCedime!t@H"i@B@ &o" t#e Ret$i7 &i!$!%e i!du@t"(
)he following factors can prove to !e an impediment to the growth of the %etail finance mar#etG
%ising interest rates
%egulatory issues
6upply9side regulations
.igh stamp duty
%emoval of ta< sops
,ncreased ris# weights
Roll No. 1267070046
2?
Concerns on increasing 3)Ks
/!ility to grow in )ier , and )ier ,, cities
(<pansion of product portfolio to meet the needs of self9employed !orrowers
Cu@tome"@I bo""oDi!A $bi7it( #$@ i!%"e$@ed @ub@t$!ti$77(
Consumers generally loo# at the (M, o!ligation at the time of availing a loan. -uring the last ?
years customers8 !orrowing a!ility has increased su!stantially due to declining interest rates and
increasing loan tenures. )he %etail finance mar#et has witnessed the highest rise of a!out ?A per
cent in the !orrowing a!ility !etween2AA?9A@ and 2A12911 considering only the a!ove two
factors.
Auto Lo$! i! I!di$
)he ,ndian retail asset finance mar#et comprises mainly %etail finance auto finance (cars and
utility vehicles) commercial vehicle finance and two9wheeler finance. ,n 2AA19A; %etail finance
alone accounted for a!out ;E per cent of the dis!ursements while auto finance accounted for 2A
percent of the retail finance dis!ursements. *oing forward these two mar#ets are e<pected to
raise their share marginally in the total retail finance dis!ursements till 2A12911.
T#e Be( A"oDt# d"i?e"@ &o" t#e $uto &i!$!%e m$"Bet $"e
Changing consumer mindset towards availing finance leading to a higher num!er of the
vehicles sold !eing financed
,ncreased focus of !an#s towards retail finance
*rowth in demand for cars and utility vehicles driven !y an increase in afforda!ility due
to the low interest rate environment coupled with increasing loan tenures !eing offered
,ncrease in the organi>ed mar#et for used cars
T#e Be( d"i?e"@ to $%#ie?e $ 0'+ Ce" %e!t CAGR i! &i!$!%i!A Comme"%i$7
)e#i%7e@ ti77 *++9-,+ $"e
*rowth in demand for commercial vehicles
Roll No. 1267070046
2@
*rowth in demand for higher tonnageNhigher value vehicles due to highway development
leading to the emergence of the hu!9and9spo#e system of transportation
.igher level of funding the vehicle cost (inclusive of cost of !ody)
,ncrease in penetration !y organi>ed players in used vehicle finance and refinance.
HoDe?e"1 &i!$!%ie"@ m$( &$%e t#e &o77oDi!A %#$77e!Ae@ i! t#e %omi!A
(e$"@G
(<pected downturn in demand for commercial vehicles in 2A12911
.igh e<posure to small fleet operators and first9time !uyers who would !e the first to !e
negatively affected in the e<pected downturn
3i#ely decline in asset =uality as players try to increase mar#et share
.i#e in fuel prices without compara!le change in freight rate to negatively affect the
profita!ility of truc# operators (their credit worthiness may !e hit)
,ncrease in operating costs as players focus more on non9ur!an mar#ets leading to a
s=uee>e in margins due to severe competition.
T#e Be( A"oDt# d"i?e"@ &o" t#e tDo-D#ee7e" &i!$!%e m$"Bet $"e
,ncreased focus of organi>ed financiers towards non9metro mar#ets leading to higher
num!er of vehicles !eing financed.
*rowth in demand for two9wheelers fuelled !yG
%ising income levels
3ac# of ade=uate pu!lic transport facilities
,ncreasing student and young professional population driving the growth in the
ur!an mar#ets
%egular launch of new models leading to consumers changingNupgrading their
vehicles at a faster rate
Roll No. 1267070046
2E
,ncreased interest among the female population for unguarded two9wheelers
St"u%tu"e o& t#e i!du@t"(
ComCetitio! to b"i!A $bout $ @t"u%tu"$7 %#$!Ae i! t#e "et$i7 &i!$!%e m$"Bet
Currently the organi>ed retail finance mar#et is catered to !y 04FCs .FCs and !an#s with
each of them vying for a share of the retail finance pie. 2hile 04FCs and .FCs have the
advantage of having years of e<perience in understanding the needs of the retail customer !an#s
(which have !een late entrants) have the advantage of lower cost of funds. -ue to the stiff
competition in this mar#et C%,6 ,0F/C e<pects a structural change within this industry
resulting in only the most efficient players surviving this competition.
P"e@e!t i!du@t"( @t"u%tu"e
)he retail finance industry in ,ndia has two !road categories of players 9 4an#s (private pu!lic
foreign and others) and non9!an#ing companies (04FCsN.FCs). )hese players can further !e
segmented !ased on the com!ination of two parameters 9 a) their cost of funds and operations and
!) their loan9origination s#ills (appraisal and collection systems) as depicted in the graph !elow.
Roll No. 1267070046
2D
Ju$d"$!t I )his group includes those lenders who have the advantage of low cost of funds and
the !enefit of efficient loan origination and servicing s#ills. )ypically new private sector !an#s
foreign !an#s and large .FCs and 04FCs would fall into this =uadrantI for e<ample ,C,C,
4an# Citi!an# .-FC 3td 3,C.F 6undaram Finance "ota# $rimus Cholamandalam
,nvestment and Finance 3td etc.
Ju$d"$!t II 3enders who have the advantage of low cost of funds !ut do not have appropriate
systems fall in this =uadrant. Most pu!lic sector !an#s can !e classified in this =uadrant.
Ju$d"$!t III )his =uadrant includes the most inefficient players in the %etail finance mar#et.
)hese players have the disadvantage of high cost of funds and lac# efficient systems. 4an#s do
not fall into this categoryI however small localised 04FCsN.FCs with inefficient systems and
high cost would fall in this =uadrant.
Ju$d"$!t I) )his =uadrant includes lenders who have esta!lished efficient systems to originate
and service loans !ut have a high cost of fundsI for instance smaller .FCs li#e *ruh Finance
-ewan %etail Finance and 04FCs li#e 6riram )ransport Finance Magma 3easing etc.
/s the competition in the %etail finance mar#et intensifies C%,6 ,0F/C e<pects a change in the
role of the various players in the mar#et.
Futu"e i!du@t"( @t"u%tu"e
Ju$d"$!t I )hese players will continue strengthening their systems and increasing their mar#et
share.
Ju$d"$!t II 6ome Quadrant ,, players will graduate to Quadrant , !y improving their own
systems (loan origination and servicing) while others will ac=uire Quadrant ,K players there!y
graduating to Quadrant ,. )he remaining players of Quadrant ,, will maintain their presence in
the mar#et !y !ecoming indirect lenders and leveraging their low cost of funds in either
purchasing portfolios or investing in mortgageNasset9!ac#ed securities.
Ju$d"$!t III C7$(e"@ &n account of their high cost and inefficient systems these players will
!e left out of the mar#et. 4ut they can leverage their investment in distri!ution networ#s and
convert themselves into direct selling agents (-6/s) for large players.
Ju$d"$!t I) C7$(e"@ $layers who do not merge with stronger players from Quadrant , or ,, will
have to reduce their cost of funds !y either selling their portfolio or securitising it. )his will
transform these players into originators for larger players. .owever in securitisation these
Roll No. 1267070046
2C
players will have to ta#e the first loss in case of defaultsI also they will continue to have a ris#ier
profile.
OCCo"tu!itie@ $!d %#$77e!Ae@ o& "et$i7 b$!Bi!A i! I!di$
%etail !an#ing has immense opportunities in a growing economy li#e ,ndia. /s the growth story
gets unfolded in ,ndia retail !an#ing is going to emerge a major driver. /. ). "earney a glo!al
management consulting firm recently identified ,ndia as the Msecond most attractive retail
destinationM of 1A emergent mar#ets.
)he rise of the ,ndian middle class is an important contri!utory factor in this regard. )he
percentage of middle to high income ,ndian households is e<pected to continue rising. )he
younger population not only wields increasing purchasing power !ut as far as ac=uiring personal
de!t is concerned they are perhaps more comforta!le than previous generations. ,mproving
consumer purchasing power coupled with more li!eral attitudes toward personal de!t is
contri!uting to ,ndia8s retail !an#ing segment.
)he com!ination of the a!ove factors promises su!stantial growth in the retail sector which at
present is in the nascent stage. -ue to !undling of services and delivery channels the areas of
potential conflicts of interest tend to increase in universal !an#s and financial conglomerates.
6ome of the #ey policy issues relevant to the retail !an#ing sector areG financial inclusion
responsi!le lending and access to finance long9term savings financial capa!ility consumer
protection regulation and financial crime prevention. )he strong growth in dis!ursements will
Roll No. 1267070046
1A
lead to a 1EJ growth in outstanding retail loans to R11A!n in F5 2A11. )his would represent 119
1?J of !an# credit and 1DJ of *-$ in that year. Mortgages would comprise @2J of the mar#et.
,n ,ndia the ratio of consumer financing to *-$ in ,ndia is 2.@ per cent while in developed
countries this ratio is normally ;A9?A per cent and in 6outh (ast countries it is E91A per cent.
,ndia has a very youthful demography with more than ?A per cent of the population !elow 2?
years as long as there are no e<ternal shoc#s and internal meltdown. ,f handled properly the
num!er of rural middle income households could grow e<ponentially and provide the ne<t !ig
!oost to consumer spending and mar#et growth. )he rural mar#et already accounts for over one9
third of consumer sales and most of the really 4ig ,deas of the future such as healthcare energy
%etail transportation and education S revolves around the rural economy.
C#$77e!Ae@ &o" t#e i!du@t"(
%etention of customers is going to !e a major challenge. /ccording to a research !y
%eichheld and 6asser in the .arvard 4usiness %eview ? per cent increase in customer
retention can increase profita!ility !y 1? per cent in !an#ing !usiness
%ising inde!tedness could turn out to !e a cause for concern in the future. ,ndia8s position
of course is not compara!le to that of the developed world where household de!t as a
proportion of disposa!le income is much higher. 6uch a scenario creates high uncertainty.
,nformation technology poses !oth opportunities and challenges. (ven with /)M
machines and ,nternet 4an#ing many consumers still prefer the personal touch of their
neigh!orhood !ranch !an#. )echnology has made it possi!le to deliver services
throughout the !ranch !an# networ# providing instant updates to chec#ing accounts and
rapid movement of money for stoc# transfers. .owever this dependency on the networ#
has !rought ,) departmentFs additional responsi!ilities and challenges in managing
maintaining and optimi>ing the performance of retail !an#ing networ#s.
"5C ,ssues and money laundering ris#s in retail !an#ing is yet another important issue.
%etail lending is often regarded as a low ris# area for money laundering !ecause of the
perception of the sums involved. .owever competition for clients may also lead to "5C
procedures !eing waived in the !id for new !usiness. 4an#s must also consider seriously
the type of identification documents they will accept and other processes to !e completed.
Roll No. 1267070046
11
)he %eserve 4an# has issued details guidelines on application of "5C norms in
0ovem!er 2A12.
Risk in Retail Banking
-eficiency in lending $olicies
,ncorrect product structuring
,nade=uate loan documentation
-eficiencies in credit appraisal
/!sence of post sanction surveillance and Monitoring
,nade=uate %is# pricing
,nade=uately defined lending limit and wea# collection strategies
6ystematic ris# arising out of macroeconomic soc#s
Su%%e@@ Fo"mu7$
,nnovative mar#eting strategies and promotional techni=ues along with the utili>ation of
internet.
2ider -istri!ution 0etwor#.
3ow cost funding
3ow operative cost
3arge product portfolio
Cross selling
$roper credit appraisal MechanismN %is# assessment procedure
.igh service level in terms of faster loan processing and dis!ursement
Fle<i!le )echnology across 4an#ing $latforms
6trong !rand products and recovery Management'
B$@e7 II
Roll No. 1267070046
12
4y the year 2A11 ,ndian !an#s are re=uired to adhere to the international standard of capital
ade=uacy norms under the new capital accord of 4asel ,,. )he %4, has already ta#en steps to
implement two major components of the second pillar of 4asel ,, i.e. ris# !ased supervision and
prompt corrective action ($C/). )he $C/ framewor# has already !een put into operation on an
e<perimental !asis !y the %eserve !an#. / pilot9 run of ris#9 !ased supervision has !een
introduced in &cto!er 2AA1.
T#e imC7eme!t$tio! o& B$@e7 II !o"m@ Di77 #$?e tDo imC7i%$tio!@ o! t#e b$!Bi!A @(@tem'
First is the a!ility of the !an#s to measure the ris#s they !ear. /lthough !an#s are now having
ade=uate ris# management practices in place the e<isting system may not !e a!le to support the
!an#s in meeting the stringent norms. )his calls for additional investment in information
technology and information sharing systems.
6econd is the challenge of meeting the ade=uacy norms !y providing more capital towards
reserves. 4an#s have to loo# out for funds to !ac# the identified ris#s and then earn income to
service the additional capital re=uirement. ,f the !an#s are not a!le to meet the reserve criteria
then the a!ility of the !an#s to lend further will !e limited. )his can have a negative impact on
their income.
Futu"e o& "et$i7 B$!Bi!A
For the 4an#s to compete : succeed in retail !an#ing mar#et new initiative : innovations new
strategies new delivery mechanism and a!ility to cross sell products are imperative. /t the same
time !an#s should align themselves with customer : !ecome more and more customer centric
with proper emphasis on relationship management.
6tri#ing %ight !alance !etween %etail !an#ing and traditional !an#ing is important for
long term sustaina!ility.
)o !e successful in %etail !an#ing overcoming competition !y leveraging technology and
human capital.

Roll No. 1267070046
11
SYNDICATE BANK
Roll No. 1267070046
1;
INTRODUCTION
6yndicate4an#
.ead &ffice G Manipal H ?E@1A;
BRIEF HISTORY
Roll No. 1267070046
1?

S(!di%$te B$!B was esta!lished in 1C2? in +dupi the a!ode of 3ord "rishna in coastal "arnata#a
with a capital of %s.DAAAN9 !y three visionaries 9 6hri +pendra /nanth $ai a !usinessman 6hri Kaman
"udva an engineer and -r.) M / $ai a physician 9 who shared a strong commitment to social welfare.
)heir o!jective was primarily to e<tend financial assistance to the local weavers who were crippled !y
a crisis in the handloom industry through mo!ili>ing small savings from the community. )he !an#
collected as low as 2 annas daily at the doorsteps of the depositors through its /gents under its $igmy
-eposit 6cheme started in 1C2D. )his scheme is the 4an#8s !rand e=uity today and the 4an# collects
around %s. 2 crore per day under the scheme !an# was first in the field to start pigmy deposit scheme.
)he progress of 6yndicate 4an# has !een synonymous with the phase of progressive !an#ing in ,ndia.
6panning over DA years of pioneering e<pertise the 4an# has created for itself a solid customer !ase
comprising customers of two or three generations. 4eing firmly rooted in rural ,ndia and understanding
the grassroot realities the 4an#8s perception had vision of future ,ndia. ,t has !een propagating
innovations in 4an#ing and also has !een receptive to new ideas without however getting uprooted
from its distinctive socio9economic and cultural ethos. ,ts philosophy of growth !y mutual sustenance
of !oth the 4an# and the people has paid rich dividends. )he 4an# has !een operating as a catalyst of
development across the country with particular reference to the common man at the individual level
and in ruralNsemi ur!an centres at the area level.
)he 4an# is well e=uipped to meet the challenges of the 21st century in the areas of information
technology #nowledge and competition. / comprehensive ,) plan is !eing put in place and the s#ills
and #nowledge of the 4an#8s personnel are !eing upgraded through a variety of training programmes to
promote customer delight in every sphere of its activity. )he 4an# has launched an am!itious
technology plan called Centrali>ed 4an#ing 6olution (C46) where!y ?AA of our strategic !ranches
with their /)Ms are !eing networ#ed nationwide over a ; year period. )he 4an# is pioneer among
$u!lic 6ector 4an#s on launching C46. &ur !an# has already achieved C46 implementation among all
its !ranches. )hus the !an# is 1AAJ C46 ena!led.
)he first !ranch of the !an# started its operations in the year 1C2D at 4rahmavar in -a#shin "annada
-istrict. 4y 1C1E it had secured its mem!ership as a clearing house at Mum!ai. )he primary o!jective
of the !usiness was to e<tended financial assistance to local weavers. ,nitially the !an# collected as
low as two annas from the door steps of the depositors daily through its agents. )his type of system
wherein the agents of the !an# come doorsteps to collect deposit is still prevailing in ,ndia and is
Roll No. 1267070046
1@
referred to as the $igmy -eposit 6cheme.
/s time progressed twenty !an#s merged with the Canara ,ndustrial and 4an#ing 6yndicate 3imited
including the Maharashtra /pe< 4an# 3imited and 6outhern ,ndia /pe< 4an# 3imited. )he name of
the !an# was changed to S(!di%$te B$!B Limited in the year 1C@; and the head office of the !an#
was shifted to Manipal. )he !an# e<panded its operations not only on the domestic front !ut also
overseas. ,t too# over /l 6ha!ei Finance and (<change Co. in -oha (1CD1) and Musandam (<change
Co. in Muscat (1CD;). 4y 1CED it opened its 1AAAth !ranch at .au> "has -elhi. Currently it has over
212? !ranches out of which 1?21 are offering core !an#ing9e9!an#ing services under anywhere9
anytime9anyhow !an#ing.
6yndicate 4an# sponsored the first regional rural !an# in ,ndia !y name $rathama *rameena 4an#.
)he stoc#s of the 6yndicate 4an# are listed on 4om!ay 6toc# (<change 0ational 6toc# (<change
Mangalore 6toc# (<change and 4angalore 6toc# (<change.
)he 4an# is well e=uipped to meet the challenges of the 21st century in the areas of information
technology #nowledge and competition. / comprehensive ,) plan is !eing put in place and the s#ills
and #nowledge of the 4an#Fs personnel are !eing upgraded through a variety of training programmes to
promote customer delight in every sphere of its activity. )he 4an# has launched an am!itious
technology plan called Centrali>ed 4an#ing 6olution (C46) where!y ?AA of our strategic !ranches
with their /)Ms are !eing networ#ed nationwide over a ; year period.
MCKINSEY=S 0S FRAMEWORK
Roll No. 1267070046
1E
I!t"odu%tio!
)he 6even H6 model was developed !y Mc"inseyFs is an important part of the organi>ation. )he
two persons who developed this model were )om $eters and %o!ert 2aterman who were
consultants at the Mc"inseyFs. )hey had pu!lished their E6 models in their respective articles
named )he /rt of 'apanese Management (1CD1)7 and ,n 6earch of (<cellence (1CD2)7.
Mc"inseyFs : CoFs E6 framewor# provides a useful framewor# for analy>ing the strategic
attri!utes of an organi>ation. )he model starts on the premises that each and every organi>ation is
not just a structure as it consists of seven important elements. 6trategy 6tructure and 6ystems can
!e considered as .ardware7 of success while 6tyle 6taff 6#ills and 6hared Kalues are
considered as the 6oftware7. Companies in which these soft elements are present are usually
more successful at the implantation of the strategy. )he Mc"ensyFs framewor# is shown in the
figure.
So&t S@
)he four 6s across the !utton of the model are less tangi!le more cultural in nature and were
termed as 6oft 6s !y Mc"insey.
,4' SBi77@G )he capa!ilities and competencies that e<ist within the company are termed as s#ills.
*4' S#$"ed )$7ue@G )he values and !eliefs of the company. +ltimately they guide employees
towards Kalued 4ehavior7.
;4' St$&&G )he companyFs people resources and how they are developed trained and motivated.
.4' St(7eG )he leadership approach of top management and the companyFs overall operating
approach.
H$"d S@
)he three 6s across the top of the model are descri!ed as .ard 6s7. )he 16s across the top of the
model are descri!ed as .ard 6s7.
<4' St"$teA(G )he direction and scope of the company over the long term is #nown as strategy.
/4' St"u%tu"eG )he !asic organi>ation of the company its departments reporting lines areas of
e<pertise and responsi!ility (and how they inter Hrelate).
Roll No. 1267070046
1D
04' S(@tem@G )hese are formal and informal procedures that govern everyday activity covering
everything from management information systems through the systems at the point of contact
with the customer (retail systems call center systems online systems etc.).
Di$A"$m S#oDi!A Ci%to"i$7 di$A"$m o& M%Ki!@e(=@ 0=S Mode7K
0S Mode7 o& S(!di%$te B$!B
3,4' St"u%tu"e
)he !an# has a well organi>ed three tier structure with a sound foundation of 2111 !usiness
outlets and a well defined reporting architecture as the !ody to support. )he corporate governance
which is the !reath sustaining the momentum is through a very talented !oard of directors
including government appointed directors employee and office representative directors guided !y
%4, Ministry of Finance *overnment of ,ndia which forms the superstructure. 4elow figure
shows the details structure of the 6yndicate 4an#.
Roll No. 1267070046
1C
ORGANISATIONAL STRUCTURE
4&/%- &F -,%(C)&%6

CHAIRMAN G MANAGING DIRECTOR

E8ECUTI)E DIRECTOR

*(0(%/3 M/0/*(%6
Po"t&o7io@
,' Co"Co"$te C"edit Di?i@io! E I 3CCD-I4 9' P"io"it( Se%to" C"edit DeCt
*' Co"Co"$te C"edit Di?i@io! E II 3CCD-II4 ,+' P"emi@e@ G M$i!te!$!%e DeCt
;' Ret$i7 B$!Bi!A DeC$"tme!t ,,' Ce!t"$7 A%%ou!t@ G LeA$7 DeCt
.' P7$!!i!A G De?e7oCme!t DeCt ,*' Pe"@o!!e7 DeC$"tme!t
<' Re%o?e"ie@ DeCt G Ge!e"$7 Adm! U!it ,;' I!@Ce%tio! DeC$"tme!t
/' DeCt' o& I!&o"m$tio! Te%#!o7oA( ,.' )iAi7$!%e DeC$"tme!t
0' Ri@B M$!$Aeme!t G Mo!ito"i!A DeCt'
:' T"e$@u"( G I!te"!$tio!$7 B$!Bi!A Di?i@io!

%egional &ffices 9 1?

4ranches H 212?


Roll No. 1267070046
;A
Bo$"d o& Di"e%to"@
Chairman : Managing -irector H6hri C. $. 6warn#ar.
(<ecutive -irector H6hri *eorge 'oseph.
Di"e%to"@
6hri M. -eena -ayalan.
6hri ". 6eetharamu
6hri "awaljit 6ingh
6hri -in#ar 6 $unja.
6hri Kinay "umar
6ora#e.
6hri M 4has#ar %ao.
Ms. 6ho!ha
Roll No. 1267070046
;1
Bo$"d o& Di"e%to"@
C#$i"m$! G M$!$Ai!A Di"e%to"
A@@i@t$!t Ge!e"$7 M$!$Ae"
E>e%uti?e Di"e%to" S%$7e )III
Ge!e"$7 M$!$Ae"
A@@i@t$!t M$!$Ae"
DeCut( Ge!e"$7 M$!$Ae"
Di?i@io!$7 M$!$Ae"
M$!$Ae"
Se!io" M$!$Ae"
/nd having 21 *eneral Manager heading different departments in the organi>ation
;2
*4' SBi77@
)he !lend of management s#ills with employee orientation and employee s#ills with
organi>ational loyalty is uni=ue to 6yndicate 4an#. .aving introduced successfully the Core
4an#ing 6olution (C46) with an entire in house team of ,.). and 0on H,.). officers itself is a
proof and trac# record for the s#ills of the prudent !an#er with the focus of migration of another
1?AA !ranches to the C46 is a !ig leap in this direction.
)raining policies and programmes are suita!ly designed modified and updated on a continuous
!asis to upgrade the #nowledge levels and s#ills of its (<ecutives &fficers and 2or#men on par
with the !est in the industry. 2hile several new programmes are introduced in tune with the
Corporate *oals the e<isting programmes are made more interactive and learner Hfriendly. %is#
Management and 4asel ,, are the focal areas of their training programmes to ensure 4an#Fs
readliness to move over to the new 4asel ,, regime and e<tra care is ta#en to sensiti>e the
wor#force to these issues.
)he !an# has ta#en its first step in e Hlearning initiative with the uploading of reading materials
on (<port Finance /gricultural 3ending and Financing 66, on its ,ntranet.
-uring the year emphasis was given to train e<ecutives N officers in the areas of %is#
Management %is# 4ased 6upervision 4asel ,, /gricultural 3ending Credit Management
Corporate : %etail Credit %ecovery Management Mar#eting : %elationship 4an#ing Foreign
(<change !usiness and C46.
3;4' St(7e
)he conduct of the operations as well as administration at each operational unit having effective
internal control has a vivid style !y itself. (very !ranch manager has his own style of functioning
individually !ut collectively is a syndicate team mem!er which is the !rand e=uity of the !an#.
)he style of the !an# in !usiness or in administration has a uni=ue niche in the industry poised
to e<cel among the peers.
;1
De%i@io! m$Bi!A @t(7e3 CoDe"@ o& di@Co@$7
3.4' St"$teA(
4eing one of the leading pu!lic sector !an#s with a culture of well managed private sector
professional institution the strategy of the !an# is to !e a premier among the peers and to e<cel
in all the parameters are it !usiness or social responsi!ilities. )o !e the faithful and friendly
financial partner to their !eloved clients. )he strategy also includes concern for the middle class
and the moderate income group of the society for financial inclusions. (volving a product called
6ynd 6amanya7 with >ero !alance in rural and semi Hur!an areas and ensuring 1AAJ coverage
at all lead districts the goal under the financial inclusion which is !eing met. )hus all the
products and services are targeted towards the a!ove focus including the core !an#ing and
internet !an#ing etc. which are introduced at a very nominal minimum !alance and no hidden
charges.
C#ie& M$!$Ae"
De@B M$!$Ae"
3S%$7e IIH III4
De@B M$!$Ae"
3S%$7e IIH III4
C#ie& M$!$Ae"
A@@t' Ge!e"$7
M$!$Ae"
De@B M$!$Ae"
3S%$7e IIH III4
CM o" AGM
DGM
De@B M$!$Ae"
3S%$7e IIH III4
CM o" AGM
DGM
GM
;;
3<4' S(@tem
)he systems and procedures of the !an# are a time tested one on sound and scientific foundation.
)he systems and procedures are well defined and are availa!le with all the hierarchy as no need
to #now !asis. )he recently developed !est practice codes and the !est !ehavioral practices are
the guiding factors of the systems prevailing. )he well structured process manuals are availa!le
for all the functional areas !e it !usiness or administration or inspection and audit.
3/4' St$&&
)he staff composition is so mi<ed and having e<perience and loyalty to the institution as the core
credentials reflecting the customerFs loyalty and ethics. )he !an# has ventured into a recruitment
drive at all levels to ensure the mi< of e<perience and youth at appropriate level and also to
ensure the age profiles of the cadres match with technological advancement. /n ongoing annual
promotional process to ensure !lending of e<perience and e<pertise to !e !rought to the fore. /
!alanced team of e<ecutives guide the operations.
)he !an# had a total staff strength of 2DAAA as on 11 9A1 92A12.where as the strength of +dupi is
D?. /nd per employee productivity on that date is ;.CDcrores. )he 6C N6) (mployees constituted
2@.21J of the total staff strength.
)he .% $olicy has !een geared to meet the Corporate o!jective of accelerated and profita!le
growth. )his includes Campus and -irect %ecruitments for replenishing s#illed Man $ower in
/gricultural Finance ,) /ccounts and Financial Management ,nternational 4usiness Credit
Mar#eting %is# Management etc. )he $romotion $olicy has also !een fine tuned to reward
&utstanding $erformance and also to facilitate 6uccession $lanning.

;?
304' S#$"ed )$7ue@
)he core of a!ove @6s is the ground rules of shared values. ,t is li#e the invisi!le software which
wor#s on the a!ove @6 as the hardware and ma#es the institution wor# to the desired level of
output.
SWOT ANALYSIS
62&) /nalysis refers to the strength and wea#ness of the company and opportunities and
threats in the environment. )he investor should carry out a 62&) analysis for the chosen
industry. )a#e for instance increase in demand for the industryFs product !ecomes its strength
presence of numerous players in the mar#et i.e. competition !ecomes the threat to a particular
industry. )he progress in the research and development in that particular industry is an
opportunity and entry of multinationals in the industry !ecomes the threat to that industry.
/ SWOT A!$7(@i@ is a strategic planning tool used to evaluate the St"e!At#@ We$B!e@@e@
OCCo"tu!itie@ and T#"e$t@ involved in a project or in a !usiness venture or in any other
situation re=uiring a decision.
)he re=uired first step in 62&) analysis is the definition of the desired end state or o!jective.
)he definition of o!jective must !e e<plicit and approved !y all participants in the process. )his
first step must !e performed carefully !ecause failure to identify correctly the end state aimed for
leads to wasted resources and possi!ly failure of the enterprise.
&nce the o!jective has !een identified 62&)s are discovered and listed. 62&)s are defined
precisely as followsG
St"e!At#@G
/re attri!utes of the organi>ation that are helpful to the achievement of the o!jective.
We$B!e@@e@
/re attri!utes of the organi>ation that are harmful to the achievement of the o!jective.
OCCo"tu!itie@
/re e<ternal conditions that are helpful to the achievement of the o!jective.
;@
T#"e$t@
/re e<ternal conditions that are harmful to the achievement of the o!jective
St"e!At# o& S(!di%$te B$!B
)he 4an# has a good image in the eyes of the general pu!lic. 6yndicate !an# provides
financial assistance to various sectors li#e /griculture 66, 6M( etc.
/s a part of its innovative strategies in product development process !an# has constantly
reviewed and redefined many of its products to meet the ever Hchanging needs and
e<pectations of the customers. 3i#e 6ynd96amanya 6ynd9Kidhyarthi
)he security arrangements in the !an# are carried out satisfactorily. )o achieve =uantitative
improvements in #ey areas of security the /nnual 6ecurity /ction $lan had !een effectively
implemented.
)he !an# has an effective and transparent system of Corporate *overnance driven !y a
highly professional 4oard which strives to adopt the !est !usiness practices that can ena!le
the ,nstitution to retain the competitive edge through innovation and world class standards of
delivery of contemporary services and products.
,n this conte<t the !an# has placed systems in place for ris# assessment and management and
provisions for continuous monitoring. )he !an# has !een proactive in conforming to the
re=uirements of the %egulatory /uthorities.
,t is well e=uipped to meet the challenges of 21
st
century in the areas of ,) "nowledge and
competition.
,t has launched Centrali>ed 4an#ing 6olution (C46) which covers E?J of the total !usiness.
We$B!e@@ o& S(!di%$te B$!B
)he !an# has implemented Core 4an#ing 6olution (C46) !y networ#ing 1?2C !ranches
spread across over 212A 4ranches covering over E?J of the 4an#Fs !usiness which need
to cover all the !ranches so as to cover 1AAJ of the !an#Fs !usiness.
;E
,) $olicy and 6trategy implementation !y the !an# has not !een covered to all the
!ranches. 6ome of the facilities provided !y the 6yndicate 4an# li#e /)M Credit Card
-e!it Card are within a particular geographic area which need to !e e<panded.
)he !an# has only a single !ranch at 3ondonI more num!er of !ranches must !e
developed not only in ,ndia !ut also a!road.
OCCo"tu!it( &o" S(!di%$te B$!B
)he Central 4an#ing 6olution (C46) has to !e implemented in every !ranch so as to improve its
!usiness activity. More opportunity is there for the !an# if it implements all its !ranches totally
with computeri>ed and the !usiness may spread across the world if it diversifies some of the
!ranches in various countries. )he !an# continues to identify new areas and activities that
re=uire attention as well as the ris# management s#ills processes and practices that need to !e
developed and strengthened.
)he !an# is planning to adopt !est international practices in Credit %is# Management and 4asel
,, implementation !y outsourcing end to end solution vi>. on Hline appraisal system ris#
assessment ris# inputs estimates capital computation and %/%&C framewor#. )he 4an# is also
in process of engaging reputed consultant to design and implement &perational %is#
Management Framewor#.
T#"e$t@ &o" S(!di%$te B$!B
,n this technological and fast growing world the greatest threat for the !an# is to compete
withother pu!lic sector !an#s private !an#s and also foreign !an#s. 6yndicate !an# has to prove
that itFs uni=ue in providing various products and services to its customers. )his is possi!le !y
continuous improvement and adopting technological advancements.
*overnment policies may go strict. More and more government policies ma#e the company
follow the rules which ultimately affect the company revenues.
,ntense competition in the mar#et.
;D
Mar#et share redistri!ution.
Mar#et place is !ecoming smarter.
PRODUCTS AND SER)ICES PROFILE
3A4' Ret$i7 C"edit S%#eme
1. 6yndKidhya H(ducation 3oan.
2. 6ynd3aghu+dyami H3oans for (ntrepreneurs.
1. 6yndKypar H3oans for )raders.
;. 6yndswarna H3oans on *old.
?. 6ynd$igmy H3oans for $igmy -epositors.
@. 6ynd%ent H3oans against %ent receiva!les.
E. 6ynd+dyog H3oans for (ntrepreneurs.
D. 6ynd6enior9 $ersonal loan for pensioners
C. 6yndKahan HFor $urchase of Kehicles.
1A.6ynd6uvidha HFor $urchase of Consumer -ura!les.
11. 6ynd"isan H3oan for agriculturist.
12.6ynd6aral HContigency 3oans.
a. For 6alaried Class.
!. For 0on H6alaried Class.
c. /ll $urpose Credit 6chemes.
11.6yndKidyarthi9a stand !y overdraft facility for students of professional courses
;C
3B4' DeCo@it S%#eme@ $t CBS B"$!%#e@
1. $remium 6aving /ccount (sweep out sweep in facility).
2. 6pecial $remium 6avings /ccounts.
1. 6yndicate Floating %ate -eposit 6cheme.
3C4' Te"m DeCo@it S%#eme@G
1. Fi<ed -eposit (F-).
2. 6ocial 6ecurity -eposit (66-).
1. Ki#as Cash Certificate (KCC).
;. Cumulative -eposit.
?. 6yndicate 6uvidha -eposit.
@. Quic# Money -eposit (QM-).
E. "isan $ragathi -eposit.
D. 6enior Citi>enFs 6ecurity -eposit.
C. 6ynd6amanya
Se"?i%e@
1. )ele H4an#ing.
2. ,nternet 4an#ing.
1. /ny 4ranch 4an#ing7.
;. Multi City /ccounts.
?. 6ynd 4ill $ay.
@. &nline Collection of -irect )a<es.
?A
E. &nline %ailway )ic#et 4oo#ing.
D. 2estern +nion Money )ransfer.
Det$i7@ o& P"odu%t@ $!d Se"?i%e@
3A4' Ret$i7 C"edit S%#eme
3,4' S(!d)id#($ EEdu%$tio! Lo$!
$urposeG $roviding financial support to deserving Nmeritorious students for pursuing higher
education in ,ndia and a!road.
(ligi!ilityG /ll students studying specified courses in ,ndia or a!road.
0ature of facilityG -3 or &63.
QuantumG
For studying in ,ndia H ma<imum of %s.E.? 3ac.
For studying a!road H ma<imum of %s.1? 3ac
6ecurityG +p to %s.; 3ac H guarantee of parentNguardian (third party guarantee not
re=uired)./!ove %s.; 3ac9 collateral security not less than 1AAJ of loan amount with stipulated
margin is re=uired.
*uarantorG +p to %s.; 3ac9guarantee of parentNguardian9(third party guarantee not re=uired).
/!ove %s.; 3ac9guarantee of parentNguardian and a suita!le third party guarantee accepta!le to
the !an#.
%epayment .olidayG Course period plus 1 year or @ months after getting jo! whichever is
earlierT
%epayment periodG Ma<imum of ?9E years after completion of repayment holiday.
3*4' S(!dL$A#uUd($mi ELo$!@ &o" E!t"eC"e!eu"@
?1
$urposeG )o meet the credit re=uirement of smallNmedium entrepreneurs traders small !usiness
and self9employersNprofessionals.
(ligi!ilityG (<isting customers who satisfy certain criteria.
Quantum of 3oanG Ma<imum of %s.? 3ac
*uaranteeG 6uita!le third parties guarantee accepta!le to the !an#.
KalidityG )hree years. 5early review is to !e done !y the !ranch on the !asis of /-K D?. ,n case
of !orrower see#s enhancements and then regular proposal is to !e o!tained
3;4' SYND)YAPAR- LOANS FOR TRADERS
$urposeG )o meet the credit limit of all types of traders.
(ligi!ilityG /ll traders.
Quantum of loanG Ma<imum of %s.2? 3ac.
6ecurityG Mortgage of propertyNpledge of 06CN "K$N 3,C $olicy etc. )he stoc# in trade also is
to !e hypothecated.
*uaranteeG )hird party not compulsory. )he owner of the property should join the transaction as
guarantor (,f the property is not owned !y the !orrower).
MarginG 1?J to ;AJ depending upon the security.
%epaymentG %enewal once in 2 years.
(;) ' SYNDSWARNA- LOANS ON GOLD
$urposeG 'ewel loans can !e granted for all purposes coming under priority sectors as well as non
Hpriority sectors.
(ligi!ilityG
)he !orrower should !e agriculturist if he is see#ing loan for agriculture and allied purposes.
'ewel loans to all others will !e classified as non Hpriority sectors.
?2
'ewel loans shall !e generally arranged to customers who are properly introduced to the !an#
and only through !ranches having the services of approved jewel appraisers.
6ecurityG *old ornaments of 229carat purity.
Quantum of loanG Ma<imum loan availa!le depends on income generation capacity or the gold
value per gram declared from time to time.
%epayment periodG Ma<imum of 1292; monthly installments along with interest.
3<4' SYNDPIGMY- LOANS FOR PIGMY DEPOSITORS
$urposeG /ny genuine credit re=uirements of $- to meet any contingencies.
(ligi!ilityG $igmy depositors having $- account must have completed 2 years with regular
contri!ution. 3oans can !e sanctioned only at those !ranches where pigmy scheme is in
operation.
QuantumG 1 times the !alance in $igmy -eposit account or %s.?AAAAN9 whichever is less.
%epaymentG
&- renewa!le on yearly !asis.
-3 to !e repaid in installment not e<ceeding 1? (M,Fs.
%ate of ,nterestG
For loans N&- sanctioned Nreleased up toG 119A1912I 91?J $.a. (fi<ed).
3/4' SYNDRENT- LOANS AGAINST RENT RECEI)ABLES
$urposeG /ny genuine !usiness Npersonal credit re=uirement e<cluding for speculative N
prohi!ited purposes as per the credit policy guidelines in force.
(ligi!ilityG 4onafide owners of commercial or residential property legally let out on leaseNrental
agreement to reputed institutionsNcompanies.
QuantumG Ma<imum of E?J of rent receiva!le (less )-6) !y owner for whole or part lease
period not e<ceeding @A months.
304' SYNDUDYOG- LOANS FOR ENTREPRENEURS
?1
$urposeG 6cheme for financing small and medium entrepreneurs.
)arget *roupG Manufacturing units trading units 6ervice entities.
(ligi!ilityG
Credit re=uirement of the applicant partyNunit shall not !e more than %s.?A 3ac.
)he annual salesNrevenue turnover of the applicant partyNunit shall not !e more than %s.2?A
3ac.
0ature of facilityG &verdraftNloans 4ill limits 3Cs N 4*s offered in one pac#age at competitive
rates within a predetermined overall limit (not e<ceeding %s.?A 3ac).
3B4' Pe"@o!$7 B$!Bi!A Lo$! S%#eme
3,4' SYND)AHAN- )EHICLE LOANS
$urposeG 3oan to purchase newNold ;9wheeler and new 29wheeler !y individuals.
(ligi!ilityG ,ndividuals having minimum annual income of %s.?AAAAN9 for 29wheeler
%s.1AAAAAN9p.a. for ;9wheeler.
3*4' SYNDSU)IDHA- CONSUMER DURABLE LOANS
$urposeG )o purchase consumer dura!les li#e )K Fridge washing machine other audio Nvideo
e=uipment computer including printer etc.
(ligi!ilityG 6alaried N non9salaried class.
%epaymentG 0ot more than @A e=uated monthly installments.
%ate of ,nterestG (compounded monthly).
*uaranteeG 6uita!le third party.
3;4' SYNDKISAN- LOANS FOR AGRICULTURISTS
$urposeG )o meet any genuine credit re=uirements N to purchase consumer dura!les.
?;
(ligi!ilityG /griculturists clean loans may !e sanctioned to e<isting customers only who have
availed some facility with the !an# and have mortgaged the property.
QuantumG
-emand loanG ?AJ of average gross annual income or %s. 1 lacs whichever is less where proof
of income from revenue authority is su!mitted. 2hen proof is not availa!le the manager must
ma#e the partyFs assessment of income. ,n such event =uantum of loan is restricted to ?AJ of
the gross annual income or %s. A.2? lacs whichever is less.
%epaymentG 0ot e<ceeding 1 years.
*uarantorG 6uita!le third parties guarantee accepta!le to the !an#.
3.4' SYNDSARAL-CONTINGENCY LOANS
3$4' S$7$"ied C7$@@
$urposeG )o meet any genuine personal credit re=uirements.
0ature of FacilityG -emand loan and &-C (for top e<ecutives only).
(ligi!ilityG $ermanent employees of central N state governments Ndepartments Nreputed pu!lic
sector underta#ings N companies Nfirms having sound financial N teachers professors staff of
schools and colleges and pensioners.
QuantumG 12 monthsF gross salary su!ject to ma<imum of %s.1 lacs where salary is not credited
at the !ranch.
%epaymentG 0ot e<ceeding @A (M,s.
%ate of ,nterestG (compounded monthly).
3oans H$3% N $)3% U 2.?J $.a. and &-C for top e<ecutives H$3% U1J $./.
*uarantorG 6uita!le third parties guarantee accepta!le to the !an#.
3b4'No! @$7$"ied %7$@@ G
$urposeG )o meet any genuine personal credit re=uirements.
??
(ligi!ilityG 0on Hsalaried persons such as -octors (ngineers /rchitecture 3awyers
Consultants 4usinessmen etc.
QuantumG 6u!ject to ma<imum of %s. ? lac#s.

3%4' A77 Pu"Co@e
$urposeG )o meet any genuine credit re=uirements.
HOUSING LOAN
)he !an#s has under restriction that they have to lend ;AJ Af the advances to priority sector
advances consisting of G small route transport operation small scale industries professionals or
self employed small !usiness retail trade agriculture and e<port.
.ousing loan has !ecome cheaper as compared to earlier years. )his is !ecause of stiff
competition !etween the !an#s
)he !an#s are re=uired to lend at their prime lending rate !ut they donFt lend at this rate this is
!ecause the %4, has given some li!erty to the nationali>ed !an#s in fi<ing their own interest rate.
)he $3% is !ased upon the low cost deposits the !an#s have they can grant loan at lesser
interest.
,n ,ndia the default in housing loan is very meger and people in ,ndia are also sentimentally
attached to the house which they ownNconstruct !y them and repayment is generally regular.
4an#s have ta#en more interest to finance housing loans !ecauseG9
1. it is secured advance with sufficient margin
2. the advance up to 1A lac# is treated as priority sector advances
1. the ris# weight age s only ?AJ
Moreover the interest up to 1.?A lac#s is considered as for ta< e<emption. )hey have also tied up
arrangement with the developer for the construction of an apartment is treated as one account.
?@
Following is the common feature of most of all housing loan scheme of different
nationalized banks like Syndicate bank(S!"!I#$S%& #i'aya bank(#I($$ )*+,
-*$!%
.urpose/
-Construction/purchase of existing/new house/flat/purchase of site for house
construction.
-For repairs/renovation/modification in existing house.
,ligibility/
$ll salaried / self-employed / business persons / agriculturists / Pensioners with
regular income.
0uantum of loan/
The quantum of loan is fixed on the basis of total proect cost less prescribed
margin !"#$ or %&$' or (" months gross salary in case of salaried class of
borrowers
Rate of Interest/
The borrower will have a choice of either fixed interest rate or floating interest
rate. Floating interest rate will be lin)ed to P*+, i.e. as - when P*+ is revised,
interest rate will also stand revised.
Repayment/
Flexible repayment period options are available. .quated monthly installments
for repayments are devised to enable the borrowers to structure and planned the
repayment of the loans.
Security/
/ortgage of the property to be financed
?E
Di&&e"e!%e@ betDee! #ou@i!A 7o$!@ Ai?e! b( t#e S(!di%$te b$!B3S(!dNi?$@4 $!d )iL$($
b$!B 3)iL$($ Home 7o$!4
Poi!t o&
di&&e"e!%e@
S(!!dNi?$@ )iL$($ Home Lo$!
Pu"Co@e For ac=uiring a new house or
e<isting house not more than 2?
years old
For purchase of old house Nflat of
age of 1A years and !elow.
E7iAibi7it( For salaried class applicant
should have completed ? years of
service and the remaining period
of service left shall not !e less
than ?years
,n case of salary income alone is
considered for deciding the
=uantum of loan such salaried
persons should !e in permanent
service and not pro!ationersG
$ersons nearing superannuation
getting retirement !enefits
sufficient to cover the 3oan
applied can also !e considered.
Ju$!tum For 6alaried persons G Ma<imum
of E2 months gross salary
(including salary of spouse)
For salaried class applicant
should have completed ? years of
service and the remaining period
of service left shall not !e less
than ? years.
Minimum loan amount is %s. 1.AA
la#h Ma<imum H /ny amount 9
on need !ased as per the cost less
stipulated margin su!ject to loan
entitlement.
,n case of %epairsN%enovation 9
ma<imum is %s. 1A3a#hs

?D
M$"Ai! 2?J of total project cost for
constructionNpurchase of new flat
or house up to ? years old.
1AJ for ac=uiring house which is
a!ove ? years old.
1AJ of the estimated cost of
additionNe<tensionNrepairsNrenovat
ion
2AJ of the cost in general. )he
cost shall include 3and cost
6tamp duty %egistration charges
Fi<tures li#e 2ard %o!es
$elmets -ressing Mirror "itchen
ca!inets N rac#s *eysers etc.
P"o%e@@i!A
%#$"Ae@
%s.?AAN9 per lac with a minimum
of %s.1AAAN9 at present.
($rocessing charges are su!ject to
change from time to time)
+p to%s.2 la#hs %s. 112N
/!ove %s. 2 la#hs to %s. 1
Crore %s. 112.N9 per la#hs or
part thereof
/!ove %s1Crore %s 1122; for
%s. 1 Crore plus %s. 1;AN9 per %s.
1 3a#hs or part thereof
R$te o& i!te"e@t
6ynd90ivas
%epayment $eriod Fi<ed rates (J) Floating rates (J)
+p to ? years 11.?A 4$3%91.A
O?e" ? years : upto 1A years 12.AA 4$3%92.?A
&ver 1A years : upto 2A years Category a!olished 4$3%92.2?
O?e" 2A years : upto 2? years Category a!olished 4$3%92.AA
?C
Kijaya .ome loan
Pe"iod
E>i@ti!A $!d &o" 7o$!@
uC to R@'*+'++ L$B#@
Re?i@ed $!d &o" 7o$!@
$bo?e R@'*+'++ L$B#@
F7o$ti!A Fi>ed F7o$ti!A Fi>ed
+p to ? years C.2?J C.?AJ 1A.AAJ 1A.E?J
/!ove ? years to 1A
years
C.E?J 1A.AAJ 1A.?AJ 11.2?J
/!ove 1A to 1? years 1A.AAJ 0o fi<ed 1A.E?J 0o fi<ed
4eyond 1? years 1A.?AJ 0o fi<ed 11.2?J 0o fi<ed
Fi!di!A@
/s .ousing loans comes under $riority sector lending the feature of housing loan given !y
different nationali>ed !an#s are similar.
)hese !an#s charging interest to their .ousing loan products even less then their $rime
3ending %ate
2hen we compare the housing loans of two nationalised !an#s i.e. 6yndicate !an# and
Kijaya !an# we find lot of similarities in $urpose of lending (ligi!ility Quantum of loan
6ecurity %ate of interest and %epayment is concerned.
/s for as difference is concerned )he difference !etween these two policy is minor li#e in
case of renovation of house syndicate !an# give loan only for the period 2? years where as
Kijaya !an# it is 1A years
,n case of eligi!ility of housing loan for salaried class of customer should complete at least
? years of service 4ut such restriction is not there in case of vijaya !an#,n simple .ousing
loans of Kijaya li!eral as compared to 6yndicate !an#
C4' DeCo@it S%#eme@ $t CBS B"$!%#e@
(1). $remium 6avings /ccount (6weep in 6weep out facility)G
@A
FeaturesG
/ll persons associations etc. who are eligi!le to open 64 accounts can open accounts under
this scheme.
/verage monthly !alance of %s. 1AAAAN9 to !e maintained in the premium saving account.
4alance availa!le in the account in e<cess of %s. 1AAAAN9 on any day gets automatically
swept out into a fi<ed deposit for 1DA days in units of %s. 1AAAN9
0o penalty is charged for !rea#ing the fi<ed deposit prematurely. .owever the amount
swept in earns interest for the period run at the application rate.
(2). 6pecial $remium 6avings /ccountsG
FeaturesG
/ll persons associations etc. who are eligi!le to open 64 accounts can open accounts under
this scheme.
%s. 2AAAAN9 maintained in 6pecial $remium 6avings /ccount7.
)he !alance availa!le in the account in e<cess of %s. 2AAAAN9 on any day will !e swept out
into a fi<ed deposit in units of %s. 1AAAN9 for one year and one day.
)he interest rate applica!le for the amount so swept in will !e the rate applica!le for the
period for which it was held in the term deposit account.
0o penalty is charged for !reading the F- prematurely.
%s. 1AAN9 per month is levied as service charges whenever the monthly average !alance in the
special saving account goes !elow %s. 2AAAAN9
(1). 6yndicate Floating %ate -eposit 6chemeG
)he scheme has !een launched from A1 9A192AA1 and the deposits are accepted at 6yndicate e9
!an#ing !ranches.
FeaturesG
@1
(a). /mount of depositG Minimum deposit accepta!le under this scheme is fi<ed at %s. 1AAN9 lacs
and in multiples of %s. 1N9 lac.
(!). $eriod of depositG one year.
D4' Te"m DeCo@it S%#eme
3,4' Fi>ed DeCo@it 3FD4
/mount of depositG &pened with minimum of %s. ?AN9 and a!ove. F- can !e opened with
minimum of %s. 1AAAN9.
$eriod of depositG
Minimum period of 1? days and ma<imum of 12A months.
4ranches are permitted to accept !ul# deposits of %s. 2? lacs and a!ove up to %s. 1AA lacs for a
period of E 91; days.
F-Fs can also !e accepted for any period in multiples of complete months or for incomplete
months li#e 11 months and 12 days etc.
2here a court directs the !an# to do so the !ranch may accept the deposits for any period
!eyond 12A months and also for any amount even if it is less than %s. ?AN9.
&ptions regarding payment of interestG
,n case of F- for @ months and !elow the interest is paya!le on maturity.
,n other cases the depositors is having the option of claiming interest on =uarterly or half
yearly rests.
Monthly interest can !e availed at discounted rates.
&ther featuresG
0omination facility is availa!le.
$remature closure is permitted to su!ject to penalty norms.
@2
3*4' So%i$7 Se%u"it( DeCo@it 3SSD4
/mount of depositG / 66- account may !e opened with a minimum of %s. 1AAAN9 and in
multiples of %s. 1AAN9
$eriod of depositG 66- can !e opened for a minimum period of one year. 66-Fs are opened only
in completed =uarters su!ject to a ma<imum of ten years.
$ayment of ,nterestG )he depositor is free to opt any one of the following regarding the payment
of interest.
Monthly ,nterestG ,nterest is paid at the end of every calendar month at discounted value.
Quarterly ,nterestG 6imple interest accruing at the end of each =uarter
will !e paid.
Calculation of ,nterestG
Monthly ,nterest at -iscount rate V /mount of deposit W %ate of interest
(12AA U %ate of interest)
E> /t 12J for %s. 1AAAAN9 discounted monthly interest isG (1AAAA W 12) N 1212 VCC.A1.
4ranches refer Master Charts on interest rates for payment of interest at discounted rates.
3;4' )iB$@ C$@# Ce"ti&i%$te
)he amount accepted under this scheme grows constantly with interest compounded on =uarterly
!asis and the accrued interest will !e paid along with the principal amount of the deposit on
maturity.
/mount of depositG /mount in multiples of %s. 1AAN9 is accepted.
@1
$eriod of depositG -eposit will !e accepted for a minimum period of @ months and in completed
=uarter !eyond @ months su!ject to ma<imum of 12A month. -eposits can also !e accepted for
odd periods li#e one year one day two year one day etc.
$ayment of ,nterestG ,nterest on the amount of deposit is compounded at =uarterly rests and paid
along with principal on maturity. )he maturity value for different periods are given in the ta!les
supplied in this regard.
-eduction of )a< at source on cash certificateG 4ranches shall affi< a seal on the cash certificate
mentioning Maturity value is su!ject to provision of ta< laws7. )here is no !reach of contract
here as it is the land which has altered the contractual terms.
.4' Cumu7$ti?e DeCo@it
,n this scheme deposits into the account are made in monthly installments for a stipulated period
on e<piry of this periodI the total amount of installments deposited is rapid with interest
compounded on =uarterly !asis.
/mount of depositG +niform monthly installments of %s. 1AN9 or in multiples thereof. .owever
with effect from A1 9A; 9A1 the minimum monthly installments stands revised to %s. 1AAN9 and
thereafter in multiples of %s. 1AN9.
$eriod of depositG Minimum period of 12 months and ma<imum of 12A months in completed
=uarters.
3<4' S(!di%$te Su?id#$ DeCo@it
/ special deposit scheme under which the depositor can withdraw a part of the fi<ed amount at
times of need.
/mount of depositG %s. 1AAAAN9 and a!ove in multiples of %s. 1AAAN9.
$eriod of depositG Minimum of 1? days and ma<imum of 12A months.
%ate of ,nterestG /s applica!le to the term deposits at the time of opening the deposit account.
@;
,nterest paymentG 6imple interest is paya!le at =uarterly intervals at the contracted rate. For all
the accounts opened prior to 2E 9A1 91CCD interest is paya!le at half yearly intervals.
$artial 2ithdrawalG
)he depositor is at li!erty to withdraw partially in multiples of %s. 1AAAN9.
)here is no restriction regarding fre=uency and num!er of
withdrawals.
2ithdrawals are recorded in the deposit ledger and also on the deposit receipt.
0o penalty is charged on partial withdrawals (w.e.f. A1 911 91CCD).
0omination facility is availa!le.
)-6 norms are applica!le.
3/4' Jui%B Mo!e( DeCo@it
)his is a term deposit scheme with overdraft facility which ensures availa!ility of funds to the
account holder without necessitating another visit to the !ranch.
/mount of depositG %s. 2?AAAN9 and a!ove in multiples of %s. 1AAAN9.
$eriod of depositG Minimum of one year and ma<imum of five years deposits can !e accepted for
incomplete =uarters also.
,nterest %ateG /s applica!le for term deposits compounded =uarterly. For incompleted =uarters
interest shall !e calculated on the !asis of 1@? days a year.
304' Ki@$! P"$A$t#i DeCo@it
"isan $ragathi -eposit is a credit lin#ed savings cum term deposit scheme designed for
agricultural clientele. )hese deposits can !e opened !y any agriculturist solely or jointly with his
wards.
,nterestG
%ate of interest shall !e 1J less than domestic term deposit rates.
,nterest is calculated on monthly product !asis.
@?
&ther )ermsG
)-6 norms are applica!le.
0omination facility is availa!le and credit facility.
3:4' Se!io" CitiFe!=@ Se%u"it( DeCo@it
)his deposit scheme with value added features was introduced !y the !an# for the !enefits of
senior citi>enFs who are of a!ove the age of @A years including retired employees of the !an#
valid proof of age to !e produced !y the depositor.
/mount of ,nterestG Minimum of 1AAAN9 and in multiples of %s. 1AAAN9.
$eriod of depositG Minimum of 12 months and ma<imum of 12A months.
%ate of ,nterestG .igher rate of A.?AJ over the normal rates applica!le to domestic term deposits.
,nterest is paya!le monthly (at discounted rate) or =uarterly as desired !y the depositors.
3oans on depositsG /vaila!le up to E?J of the deposit amount.
&ther FeaturesG
0omination facility is availa!le.
)-6 norms are applica!le.
Se"?i%e@
3,4' Te7e EB$!Bi!A
%ound the cloc# access regarding account details !alance en=uiries transfer of funds can !e
made from one account to another and utility !ills li#e electricity telephone etc. can also !e
paid.
3*4' I!te"!et B$!Bi!A
)he !an# is accessi!le from your home office or while you are traveling. / login password and
transaction password has to !e o!tained with these passwords you can login and (a). Kiew
@@
account transactions. (!). (ffect transfer of funds. (c). &pen a )erm -eposit. (d). $lace re=uests
for issue of Che=ue !oo#s demand drafts etc.
3;4' A!( B"$!%# B$!Bi!A
4an#ing is no longer restricted to the physical !oundaries of your 4ranch premises. 5ou can (a).
*et cash payment of your Che=ue up to a limit in any other C46 4ranches. (!). *et collection of
your che=ues. (c). $urchase --s M)s etc. or get online transfer of funds.
3.4' Mu7ti Cit( A%%ou!t@
)hese are accounts which can !e operated in various C46 centers. 5ou can opt for one of the five
variant of the accounts depending on the minimum average !alance.
(a). 6ynd H6ilver HCurrent /ccounts.
(!). 6ynd H*old HCurrent /ccounts.
(c). 6ynd H$latinum HCurrent /ccounts.
(d). Multi HCity HCorporate with sweep Hin and sweep Hout facility from &- account to current
account.
)hese Multi HCity Che=ues can !e de!ited at any of our C46 networ# !ranches. &ther
transactions li#e purchasing --s fund transfer etc. could !e done for reasona!le charges.
3<4' S(!d Bi77 P$(
/ hassle free utility payment product wherein utility !ills can !e paid directly !y the !an#. )he
modes of payment !y registering with the 4an# Hall for no charges.
(a). /utopay Hwhere the 4an# pays the !ill on due date.
(!). &nline pay Hwhere you can view the !ills that are due and authori>e payment online.
@E
3/4' O!7i!e Co77e%tio! o& Di"e%t T$>e@
&ur 4an# collects Central 4oard -irect )a<es from the customer at the selected !ranches
identified for this purpose.
304' O!7i!e R$i7D$( Ti%Bet BooBi!A
)he !an# has joined hands with ,ndian %ailway Catering : )ourism Corporation 3td. (,%C)C)
to offer online !oo#ing of railway tic#ets for all ,nternet H!an#ing (6yndinet) Customers of their
!an#. )his facility is offered to the customers a!solutely free of cost.
3:4' We@te"! U!io! Mo!e( T"$!@&e"
)he !an# has signed Mo+ with MNs "uoni )ravel (,ndia) $vt. 3td. /gent for MNs 2estern +nion
0etwor# (,reland) 3td to ma#e payments of 2estern +nion Money )ransfer remitted !y 0%,s
from foreign countries.
@D
A"e$ o& OCe"$tio! EG7ob$7 H N$tio!$7 H ReAio!$7
6yndicate !an# is a major pu!lic sector !an# Hserves over 1Cmillon Clinteles through 2EAA
!ranches spread over 2A states and four union territories with a !ranch at 3ondon and a
wor#force of 2DAAA.
)he glo!al !usiness of the !an# e<ceeds +s ",((,&&& crore. ,t is #nown for mass !an#ing
through its innovative schemes ranging in scope from small savings and social lending to
corporate finance
and foreign !usiness.
P$"ti%u7$"@ R@' I! %"o"e@ G"oDt# i! M
*lo!al !usiness 111;E1 ;;.A1
*lo!al -eposits ED@1; ;@.@;
*lo!al /dvance ?2D1C ;A.11
0et $rofit E1@ 11.;E
0et ,nterest ,ncome 21?A 1;.11
OD!e"@#iC P$tte"!
4ranches 2EAA
C46 4ranches 1?AD
/)MFs EA1
Clientele 1C million
0etworth +s ",((,&&& crore
@C
S(!di%$te B$!B i@ $ Go?t' o& I!di$ u!de"t$Bi!A' T#i@ #$@ mo"e t#$! //M o& @#$"e %$Cit$7
6l.
0o.
Category 0o. of 6hares
held
J of share
holding.
A P"omote"=@ Ho7di!A
1 $romoters
*overnment of ,ndia 1;@C@D2D2 @@.;E
Foreign $romoters 0,3
2 $ersons acting in concert 0,3
Sub Tot$7 1;@C?@D2D2 @@.;E
B No! EP"omote" Ho7di!A
1 ,nstitutional ,nvestor
(a). Mutual Funds and +), 11;A12EA 2.?E
(!). 4an#s Financial ,nstitutions ,nsurance
Companies (Central N 6tate *ovt. ,nstitutions N
0on Hgovernment ,nstitutions).
1D1?AAA2 1.?2
(c). F,,Fs. @1DC;@C? 12.2;
Sub Tot$7 C?@;?;@E 1D.11
; Ot#e"@
(a). $rivate Corporate 4odies ?C?2EC1 1.1;
(!). ,ndian $u!lic E1;2?ED; 11.@D
(c). 0%,s N &C4s 111@11A A.22
(d). /ny &thers D1CD2@ A.1@
Sub Tot$7 EC1?;?11 1?.2A
G"$!d Tot$7 ?21C@D2D2 1AA.AA
ComCetito"@ I!&o"m$tio!
For any industries there are num!er of competitors who themselves try to emerge with
innovative products and services to compete with other industries. )hey provide products and
EA
services in order to satisfy the customers which are economy to their purchasing ha!its.
3i#ewise 6yndicate 4an# is also having its competitors li#e all $u!lic 6ectors 4an#s in ,ndia
and $rivate 6ectors 4an#s Foreign 4an#s etc. )he main competitors of 6yndicate 4an# are 64,
and its /ssociates $unja! 0ational 4an# Canara 4an# Corporation 4an# +nit )rust of ,ndia
(+),) ,ndian &verseas 4an# etc. $rivate sector !an#s li#e ,C,C, ,-4, Centurian !an# also give
competition.
I!&"$@t"u%tu"$7 F$%i7itie@
Syndicate !an# has following infrastructure facilities
1. C46 4ranches
2. /)MFs
1. )otal 4ranch Mechani>ation()4MFs)
;. Kideo Conferencing in .& %& C&
?. ,nternet facility
@. -ata ware %etail and mining
E. %eal )ime *ross 6ettlement(%)*6) in C46 !ranches
D. Foreign e<change !usiness
C. )reasury and ,nvestment
1A. Credit and -e!it card
11. 6ecurity arrangement
12. Close circuit )K and )ime cloc# facility
11. communication facility with cash van during cash remittance
1;. ,nstallation of .otline with currency chest
1?. 6trong and safe room for currency chest
1@. 4urglar alarm system in all !ranch
1E. /utomatic fire alarm system in all C46 !ranches
1D. Fire proof ca!inet in all C46 !ranches
E1
0ote counting machine E;@
0ote sorting machine ;?
0ote !anding machine 1AA
-es#top ultraviolet lamp 212A
.and ultraviolet lamp E?A


WORK FLOW MODEL
/-K/0C(6
E2
,nterview with manager
"now your customer
(valuation of project
6anction of loan
-ocumentation
)ransfer to his 6N4
accounts
%epayment of interest
Di$A"$m No',
)his is the wor# flow model followed !y the !an# at the time of giving advances to their
customers. 2hich involves the following series of steps they areG
I!te"?ieD Dit# t#e m$!$Ae"
/ny party re=uiring funds through !an# first has to tal# with the respective manager of a !ranch
of his area. &ne thing the manager has to see that the amount of loan he has to sanction is in his
E1
Customer approaching the
!an#N (n=uiry
,ntroduction
-ocumentation
6aving Fi<ed current :
%ecurring /NC
/NC .older facilities
-eposits
Cashier
Cash supervisor Cash supervisor
Cashier
2ithdrawal
/ccount of the customer /ccount of the customer
powerN limit or else he has to concern his higher authority. ,n this stage the process of negotiation
regarding rate of interest !etween party and !an#er ta#es place.
K!oD (ou" %u@tome"
)he important duty of a manager is to #now his customer there are many systematical techni=ues
and process to #now the real identification of the customers. )his is done mainly to avoid anti9
laundering.
E?$7u$tio! o& C"oLe%t
)he purpose of loan to !e sanctioned should !e clearly understood either !y evaluating !lue print
of his project or !alance sheet or performance proof of his e<isting !usiness. )his is mainly done
to ma#e sure that repayment of the amount is ensured and party wonFt !ecome !an#rupt. ,n case
of personal loan evaluation of the person is done through other person who is #nown to the
!an#er.
S$!%tio!i!A
6anctioning is not actual giving of loan that is the amount to !e paid is promised .the party in
need of it is capa!le of withdrawing the amount not more then the amount sanctioned to him.
Do%ume!t$tio!
)he documentation deals with filling of forms that are in contractual form and most of the
documentation process could !e seen in all the stage. ,t also deals with su!mission of security for
their loan and its formalities.
T"$!@&e" to #i@ $%%ou!t
)he party which is !orrowing loan from !an# need to have an account in that !an# if not the
!an#er will create an account for this purpose. /nd most of time the loan amount is transferred to
his account and rarely they give it in their hand either in their hand either in the form of --
Che=ue or cash it depends upon the !an#er and the party .
ReC$(me!t
/fter the purpose of the loan is served the party is o!liged to repay the amount incorporating
$3% and other !an# charges or according to the agreement
E;
-($&6,)6
Di$A"$m No ' *
)his is the wor# flow adopted !y the !an# at the time of receiving the deposits from their
customers.
)he first step in this process is customer approaching the !an#. 2hen the customers will have
surplus money with them they will !e loo#ing to invest that money in some place where they
can get good returns out of it. 4an# is one such place which accepts deposits from their
customers and pays interest on them. 6o the customers will !e loo#ing for that !an# which will
E?
pay them highest rate of interest on their deposits. &nce the customer identifies the !an# where
he is going to deposit his amount he has to go through the introduction stage were the customer
needs to !e introduced to the !an#. .e may !e introduced to the !an# !y the customer or an
employee of this !an#. .e is as#ed for providing documents li#e %ation card or any license for
address age : income proof. &nce the account is opened (i.e. (ither 6.4 aNc fi<ed deposits
recurring deposits or current aNc) heNshe will provide with facilities li#e Che=ue !oo# /)M or
&.- if itFs a current aNc. &nce the customer opens an account in the !an# he can deposit any
amount any num!er of times !ut in case of fi<ed deposit its one lump sum amount deposited till
its maturity it is not withdrawn. 2hen amount is deposited it goes to the hands of cashier and
then to cash supervisor and then to his account !ut now due to C46 in a minute we give to
cashier its transferred to customers aNc. )he depositors are eligi!le to withdraw the amount which
is credited in their account and not more than that unless it is current account. -epositors can
withdraw as an when they need !ut in case of fi<ed deposits prior E days notice to !e given !ut
todayFs !an#er will not as# for any notice just give it in the spot with penalty. )he process of
withdrawal is reverse of depositing where from his account it goes to cash supervisor from him
to cashier finally to the hands of customer again traditional wor# flow. 0ow all are computeri>ed
where in one person does all the activity. Customer can directly withdraw in /)Ms or can
directly issue Che=ues to the other party.
E@

EE
R,S,$RC) *B(,C1I#,/
The obective of the study is as follows0
To examine the essential dimensions of retail financing i.e. +1T.+- +eliability,
assurance, tangibles, empathy and responsiveness of 23456C1T. 7148 and its effect
on customer s satisfaction.
To find out the level of perception of the customers from the retail financing offered
by the ban)s.
To )now which retail financing dimension of the ban) is performing well.
To identify which dimension of retail financing needs improvement so that the quality
of service of 23456C1T. 7148 ban)s is enhanced
I+.*R1$!C, $!" SC*., *F 1), S12"/
)he study would try to throw some insights into the e<isting services provided !y the
!an#s perceptions and the actual retail financing of the !an#. )he results of the study would !e
a!le to recogni>e the lacunae in the system and thus provide #ey areas where improvement is
re=uired for !etter performance and success ratio. ,n the days of intense competition superior
service is the only differentiator left !efore the !an#s to attract retain and partner with the
customers. 6uperior retail financing ena!les a firm to differentiate itself from its competition
gain a sustaina!le competitive advantage and enhance efficiency.
SC*., *F S12"/
)he scope of this research is to identify the retail financing of 650-,C/)( 4/0".
)his research is !ased on primary data and secondary data. )his study only focuses on the
dimensions of retail financing i.e. %/)(%. ,t aims to understand the s#ill of the company in the
area of retail financing that are performing well and shows those areas which re=uire
improvement. )he study was done ta#ing two !ranches of 650-,C/)( 4/0" into
consideration. )he survey was restricted to the !an# customers in -elhi only.
ED
R,S,$RC) +,1)*"*-*3/
"$1$ S*2RC,
.rimary "ata/
The primary data was collected by means of a survey. 9uestionnaires were
prepared and customers of the ban)s at two branches were approached to fill up the
questionnaires. The questionnaire contains "& questions which reflect on the type and
quality of services provided by the ban)s to the customers. The response of the
customer and the is recorded on a grade scale of strongly disagree, disagree, uncertain,
agree and strongly agree for each question. The filled up information was later analy:ed
to obtain the required interpretation and the findings.
Secondary "ata/
6n order to have a proper understanding of the retail financing of ban) a depth
study was done from the various sources such as boo)s, a lot of data is also collected
from the official websites of the ban)s and the articles from various search engines li)e
;oogle, yahoo search and answers.com.
RESEARCH DESIGN
)he research design is e<ploratory till identification of retail financing parameters.
3ater it !ecomes descriptive when it comes to evaluating customer perception of retail financing
of the !an#s.
"escriptive research, also )nown as statistical research, describes data and
characteristics about the population or phenomenon being studied. 5escriptive research
answers the questions who, what, where, when and how.
1lthough the data description is factual, accurate and systematic, the
research cannot describe what caused a situation. Thus, descriptive research cannot be
used to create a causal relationship, where one variable affects another. 6n other words,
descriptive research can be said to have a low requirement for internal validity.
The description is used for frequencies, averages and other statistical
calculations. <ften the best approach, prior to writing descriptive research, is to conduct
a survey investigation. 9ualitative research often has the aim of description and
researchers may follow-up with examinations of why the observations exist and what
the implications of the findings are.
EC
R,S,$RC) S$+.-,/
S$+.-I!3 .-$!/
2ince it is not possible to study whole universe, it becomes necessary to ta)e
sample from the universe to )now about its characteristics.
2ampling =nits0 Customers of 23456C1T. 7148.
2ample Technique0 +andom 2ampling.
+esearch 6nstrument0 2tructured 9uestionnaire.
Contact /ethod0 Personal 6nterview.
S$+.-, SI4,/
The wor) is a case of 23456C1T. 7148, one of the largest ban) of 6ndian ban)ing
industry together representing over "# per cent of the mar)et share of 6ndian ban)ing
space. The survey was conducted in the city of 5elhi with two branches of 23456C1T.
7an), with #& customers as respondent.
"$1$ C*--,C1I*! 1**- 5ata was collected through a structured questionnaire.
*i)ert scale technique is used. The format of a typical five-level *i)ert item is0
>. 2trongly disagree
". 5isagree
%. 4either agree nor disagree
?. 1gree
DA
#. 2trongly agree
*i)ert scaling is a bipolar scaling method, measuring either positive or negative
response to a statement. The questionnaire consists of two parts. The first part consists
of three questions concerning the demographic information of the respondent such as
the name, age, educational qualifications and income. The second part consisting of >@
questions exploring the respondentAs perception about the retail financing of
23456C1T. 7148. For evaluation of retail financing of 23456C1T. ban) retail
financing dimension of reliability, assurance, tangibility, empathy and responsiveness is
used in order to evaluate the actual retail financing of 23456C1T. 7148.
R,S,$RC) -I+I1$1I*!S/
The study is only for the 23456C1T. 7an) confined to a particular location and
a very small sample of respondents. Bence the findings cannot be treated as
representative of the entire ban)ing industry.
The study can also not be generali:ed for public and private sector ban)s of the country.
+espondents may give biased answers for the required data. 2ome of the respondents
did not li)e to respond.
+espondents tried to escape some statements by simply answering Cneither agree nor
disagreeD to most of the statements. This was one of the most important limitation
faced, as it was difficult to analy:e and come at a right conclusion.
6n our study we have included #& customers of ban) because of time limit.
D1
ANALYSIS OF FINANCIAL PERFORMANCE
Fi!$!%i$7 A!$7(@i@ o& @(!di%$te B$!B &o" t#e (e$" e!di!A *+,;
6yndicate 4an# which has a !alance sheet si>e of %s.CAA !illion is among the ten largest
state9owned !an#s in ,ndia in terms of asset si>e. )he !an# operates through a networ# of 212@
domestic !ranches and one international !ranch. ,t has a dominant presence in the southern
region which houses ?DJ of its !ranches. )he !an# made its first pu!lic offer in 1CCC when it
offered 12? million e=uity shares at par and raised %s1.2? !illion. ,t raised further capital of
%s2.? !illion in 'uly 2A11 !y offering ?A million shares at a premium of %s;A per share. /s a
result the government8s sta#e has reduced to @@.?J.
Re%e!t de?e7oCme!t@
6yndicate 4an# has revised its !enchmar# prime9lending rate ($3%) from 12.2?J to
11J in /pril 2A11.
4alance sheet growth remains strong
Margins decline 5o5 !ut e<pand QoQ
)reasury profits flatI other income up 1AJ in F511
/sset =uality improves with net 0$/s down to A.E@J
)ier9, C/% down to @.2JI !an# would need capital in F5AD
D2
A!$7(@i@ o& B$!B=@ $!!u$7 "eCo"t *+,*-,;
2yndicate 7an) is progressing well under all parameters,
G7ob$7 Bu@i!e@@ G
*+,* *+,;
G7ob$7 bu@i!e@@ %s.1A?1;1 crores %s.112?2@ crores
Dome@ti% bu@i!e@@ %s.C@212 crores %s.121AC? crores
)he *lo!al 4usiness of the !an# as on 1A
th
'une 2A11 grew !y 2@.A;J and stood at
%s.112?2@ crores as against %s.1A?1;1 crores as on 1A
th
'une 2A12. )he !an# has
strategically opted for moderate growth during the current fiscal.
-omestic !usiness as on 1A
th
'une 2A11 increased to %s.121AC? crores from %s.C@212
crores as on 1A
th
'une 2A12 registering a growth of 2E.C;J.
DeCo@it@
D1
*+,* *+,;
Tot$7 deCo@it@ %s.@1D2C crores %s.DA@D2 crores
Dome@ti% deCo@it@ %s.?CCEC crores %s.E@;DA crores
)he 4an#Fs total deposits reached a level of %s.DA@D2 crores as on 1A
th
'une 2A11 from
%s.@1D2C crores as on 1A
th
'une 2A12 recording a growth of 2@.;AJ.
)he growth of deposits in Q1 was 2.@AJ. )he low cost deposits increased !y 12J to %s.
2@A;? crores as on 1A
th
'une 2A11 from %s.2A1E; crores as on 1A
th
'une 2A12.
)he 4an# will effectively leverage on the 2 Million plus accounts opened !y the 4an# in
2A12911 and new accounts opened in the first =uarter to accelerate the growth of low cost
deposits.
)he domestic deposits with the growth of 2E.?1J scaled to a level of %s.E@;DA crores
as on 1A
th
'une 2A11 from %s.?CCEC crores as on 1A
th
'une 2A12.
Ad?$!%e@
*+,* *+,;
G7ob$7 A"o@@ $d?$!%e@ %s. ;111; crores %s. ?1D;; crores
Dome@ti% $d?$!%e@ %s.1@211 crores %s.;@@1? crores
)he *lo!al gross advances as on 1A
th
'une 2A11 increased !y 2?.;CJ to a level of %s.
?1D;; crores from %s. ;111; crores as on 1A
th
'une 2A12. )he C- ratio as on 1A
th
'une
2A11 was placed at @;.2@J as against @;.E1J reported as of 1A
th
'une 2A12.
)he domestic advances grew !y 2D.@?J to a level of %s.;@@1? crores as on 1A
th
'une
2A11 from %s.1@211 crores as on 1A
th
'une 2A12.
Net C"o&it
D;
*+,* *+,;
Net C"o&it %s. 1DA.?D crores %s. 221.A1 crores
)he net profit of the 4an# increased to %s. 221.A1 crores for the =uarter ended 1A
th
'une
2A11 from %s. 1DA.?D crores for the =uarter ended 1A
th
'une 2A12.
)he year9on9year growth of net profit wor#s out to 22.;AJ. )he growth is achieved from
the higher 0,, of %s. ;1 crores and despite higher operating e<penditure !y %s.;D crores
as compared to the previous =uarter.
OCe"$ti!A P"o&it
*+,* *+,;
OCe"$ti!A C"o&it %s.2C1.C? %s.11;.?2
The operating profit for the quarter ended %&
th
Eune "&>% stood at +s.%>?.#"
crores as against +s."F%.F# crores reported for the quarter ended %&
th
Eune "&>"
thereby recording a growth of ($.

The low growth is mainly due to increased deposit cost on account of hardening
of interest rate and higher depreciation of +s.@ crores for investment of around
+s.>%" crores incurred on account of accelerated C72 conversion in the last
year and in the first quarter of the current year.
Tot$7 I!%ome
*+,* *+,;
D?
Tot$7 i!%ome %s.11?E crores %s.1CCC crores
I!te"e@t i!%ome %s.1211 crores %s.1D;@ crores
P"o&it o! @$7e o& i!?e@tme!t@ %s. 2; crores %s. 1D crores
The total income of the 7an) increased to +s.>FFF crores during the 9> of "&>%-
&@ from +s.>%#( crores against 9> of "&>"->%, an increase of ?(.%%$, mainly
contributed by the growth in interest income.
6nterest income for the quarter ended %&
th
Eune "&>% improved to +s.>@?G crores
from +s.>"%> crores reported for the quarter ended %&
th
Eune "&>". Hhile the
overall growth in interest income wor)s out to #&$, the increase in interest on
advances was to the extent of #@.?&$.
The profit on sale of investments was to the extent of +s. %@ crores for the
quarter ended %&
th
Eune "&>% as against +s. "? crores earned for the quarter
ended %&
th
Eune "&>". The fee based income increased to +s.>"( crores for the
quarter ended %&
th
Eune "&>% from +s.>>& crores for the quarter ended %&
th
Eune
"&>", increase by >#.?#$.
Net I!te"e@t I!%ome 3NII4
*+,* *+,;
Net I!te"e@t I!%ome %s.?A@ crores %s.?;E crores
D@
1he !II for the 5uarter ended 67
th
(une 8796 grew by :; and stood at
Rs<=>? crores as against Rs<=7@ crores for the 5uarter ended 67
th
(une
8798<
Net Do"t#
*+,* *+,;
Net Do"t# %s.2D1D crores %s.1;A@ crores
1he !et worth of the Bank increased to Rs<6>7@ crores as on 67
th
(une 8798
from Rs<8:9: crores as on 67
th
(une 8799& mainly contributed by the
retained earnings<
NPA M$!$Aeme!t
*+,* *+,;
No! Pe"&o"mi!A A@@et 1.D?J 1.A@J
3ross !.$ came down to 6<7@; as of 67
th
(une 8796 from 6<:=; as of 67
th
(une 8798< !et !.$ came down to 7<:8; as of 67
th
(une 8796 from 7<:@;
as of 67
th
(une 8798<
C$Cit$7 AdeNu$%( R$tio 3CAR4
DE
)he C/% stood at 12.@2J as of 1A
th
'une 2A12 well a!ove the stipulated mar# of CJ.
)he )ier , ratio was placed at @.C2J as of 1A
th
'une 2A12 and the )ier ,, ratio stood at
?.EAJ.
Ot#e" Fi!$!%i$7 P$"$mete"@
i4 Retu"! o! A@@et@G )he return on assets declined to A.CDJ as on 1A
th
'une 2A11 from
1.A2J as on 1A
th
'une 2A12. )he ratio as on 11
st
March 2A11 was A.C1J.
ii4 E$"!i!A Ce" @#$"e 3EPS4 ($6 improved to %s. 1@.C2 as on 1A
th
'une 2A11 from %s.
11.D; as on 1A
th
'une 2A12.
iii4 BooB )$7ue Ce" S#$"e )he 4oo# Kalue per share increased from %s. ?E.E; as on 1A
th
'une 2A12 to %s. E1.?C as on 1A
th
'une 2A11.
i?4 EmC7o(ee P"odu%ti?it( 4usiness per employee improved from %s. ;.A; crores as on
1A
th
'une 2A12 to %s. ;.C@ crores as on 1A
th
'une 2A11.
A!$7(@i@ o& b$7$!%e @#eet $!d P"o&it G Lo@@ A%%ou!t o& t#"ee (e$"@ $@ o! ;,-
+;-*+,, to ;,-+;-*+,;
)he !alance sheet of the 4an# could !e analy>ed on the !asis of the following important aspects
(%s in BAAAF)
;,-+;-*+,, ;,-+;-*+,* ;,-+;-*+,;
C$Cit$7 ;E1C@D1 ?21C@D1 ?21C@D1
DeCo@it@ ;@2C;?@2? ?1@2;1C;E ED@11?@E
DD
Bo""oDi!A@ 122AAC1 1;1A??A 11E1?2C;
I!?e@tme!t@ 2A1EAE112 1E2@C1AD; 2?21;A11;
Ad?$!%e@ 2@E2C2A2D 1@;@@2111 ?1@EA;1DA
I!%ome
I!te"e@t e$"!ed 1E?E@21E ;A?A;1CA @A;A121?
Ot#e" i!%ome ?@;??;1 ?@1C@?C @1D;E@1
Tot$7 .;**1,010: ./,*1;:1.9 //<:1<.10:
E>Ce!ditu"e
I!te"e@t e>Ce!ded 2A@1EC?C 21@C?;DE 1DCAA1@2
OCe"$ti!A e>Ce!@e@ 12@;2A1; 1;1;D11E 11D?CE?2
P"o?i@io!@ G %o!ti!Ae!%ie@ ?C12EE; ;E1?1A1 @@@;C?@
Tot$7 ;9,91*01/0 .,*<1:91*< <9.*1.:10+
P"o&it H Lo@@
Net C"o&it .+*19+1,, <;/1.91*. 0,/1+/1+:

A%#ie?eme!t H AD$"d@ Do! b( t#e B$!B o?e" t#e (e$"@
,90* H,0-,/0 M(%C./0)6 C./M4(% /ward for outstanding contri!ution towards welfare
of community.
,90. H,0-,/0 M(%C./0)6 C./M4(% /ward for outstanding contri!ution in promotion of
savings.
,90< EC(%),F,C/)( &F M(%,) for 4an#8s house journal M*,/0)M.
,90/EI0)(%0/),&0/3 /2/%- !y '/5C(( international for outstanding contri!ution to the
cause of the '/5C(( movement.
DC
,900E/66&C./M /2/%- for promotion of rural and agricultural activities of 6yndicate
/griculture Foundation sponsored !y the !an#.
,90:E,0-,/0 M(%C./0)6 C./M4(% /2/%- for outstanding contri!ution towards
welfare of the community.
,9:,E0/),&0/3 ,0K(6)M(0) /0- F,0/0C( /2/%- for $riority 6ector lending.
,99+EC./+-./%, C./%/0 6,0*. M(M&%,/3 0/),&0/3 /2/%- for %ural
-evelopment.
,999 EF,CC, /2/%- for institutional initiative in the field of M%ural -evelopmentM to
%+-6(), jointly sponsored !y 6yndicate 4an#.
*++< E4an#ing )echnology /ward for innovative use of 4an#ing /pplications on ,0F,0()
awarded !y ,-%4) .ydera!ad.
*++: E4an#ing )echnology /ward awarded !y ,-%4) .ydera!ad for the year 2AAD.
*+,;- ,nstitute for -evelopment and %esearch in 4an#ing )echnology (,-%4)) esta!lished !y
%eserve 4an# of ,ndia has conferred 6yndicate 4an# 6pecial /ward for +se of ,) for Customer
6ervice in 6emi9+r!an and %ural /reas7. )he award was given to 6hri C $ 6warn#ar Chairman
: Managing -irector 6yndicate 4an# !y -r. %/*.+%/M *&K,0- %/'/0 .onF!le
*overnor %eserve 4an# of ,ndia on 6ept. A2 2A11 at .ydera!ad.
CA
C1
FINDINGS
)he findings of the study are follows
)he 650-,C/)( 4/0" has a well defined organi>ation structure.
)here is a harmonious relationship is e<ist in the organi>ation !etween employees and
management.
)he employees are really motivated !y the management.
)he employees are satisfied with the present incentive plan of the company
Most of the wor#ers agreed that the company is eager in recogni>ing and ac#nowledging
their wor#.
)he study reveals that there is a good relationship e<ists among employees.
Majority of the employees agreed that there jo! security to their present jo!.
)he company is providing good safety measures for ensuring the employees safety.
From the study it is clear that most of employees agrees to the fact that performance
/ppraisal activities and support from the cowor#ers in helpful to get motivated.
)he study reveals that increase in the salary will motivates the employees more.
)he incentives and other !enefits will influence the performance of the employees
C2
CONCLUSION

Retail !an#ing is the fastest growing sector of the !an#ing industry with the #ey success
!y attending directly the needs of the end customers is having glorious future in coming years.
%etail !an#ing sector as a whole is facing a lot of competition ever since financial sector
reforms were started in the country. 2al#9in !usiness is a thing of past and !an#s are now on
their toes to capture !usiness. 4an#s therefore are now competing for increasing their retail
!usiness.
)here is a need for constant innovation in retail !an#ing. )his re=uires product
development and differentiation micro9planning mar#eting prudent pricing customi>ation
technological up gradation home N electronic N mo!ile !an#ing effective ris# management and
asset lia!ility management techni=ues.
2hile retail !an#ing offers phenomenal opportunities for growth the challenges are
e=ually discouraging. .ow far the retail !an#ing is a!le to lead growth of !an#ing industry in
future would depend upon the capacity !uilding of !an#s to meet the challenges and ma#e use of
opportunities profita!ly.
.owever the #ind of technology used and the efficiency of operations would provide the
much needed competitive edge for success in retail !an#ing !usiness. Furthermore in all these
customer interest is of chief importance. )he !an#ing sector in ,ndia is representing this and , do
hope they would continue to succeed in this traded path.
C1
BIBLIOGRAPHY
WEB REFERENCES
DDD'@(!di%$teb$!B'%o'i!
DDD' moti?$tio!!$uB"i#ub'%om
DDD' #um$!"e@ou"%e@'$bout'%om
DDD'7i?mi!t'%om
DDD'@%"ibd'%om
WiBeC$die$'%om
BOOKS
C;
$!!,A2R,

02,S1I*!!$IR,
+espected 2ir//adam
, am student of '/./0*,%/4/- (-+C/),&0/3 )%+6) *%&+$ &F
,06),)+)( conducting a survey on ANALYSIS OF RETAIL FINANCING IN BANKING
SECTOR WITH SPECIAL REFERANCE TO SYNDICATE BANK7. )he following
statements relate to your feelings a!out the 650-,C/)( 4/0". $lease show the e<tent to
which you !elieve 650-,C/)( 4/0" has the feature descri!ed in the statement. ,
re=uest you to X the option which in your opinion are !elieved to !e true. /ll data will !e #ept
confidential.
C?
4ame0
1ge0
.ducational 9ualifications0
6trongly /gree 0on -isagree 6trongly
/gree -isagree
C@
1. 650-,C/)( 4/0" has modern loo#ing
(=uipment
2. )he !an#8s physical features are visually
appealing
1. )he !an#8s reception des# employees are neat
appearing
;. MMaterials associated with the service (such
as pamphlets or statements) are visually
appealing at the !an#.
?. 22hen the !an# promises to do something
!y a certain time it does so.
@. 2hen you have a pro!lem the !an# shows a
sincere interest in solving it.
E. )he !an# performs the service right the first
time.
D. )he !an# insists on error free records.
C. (mployees in the !an# tell you e<actly when
the services will !e performed.
1A. (mployees in the !an# give you prompt
service.
11. (mployees in the !an# are always willing to
help you.
12. (mployees in the !an# are never too !usy to
respond to your re=uest.
11. )he employees of the !an# are trustworthy.
6trongly /gree 0on -isagree 6trongly
/gree -isagree
CE
1;. )he !ehavior of employees in the !an#
instills confidence in you.
1?. 5ou feel safe in your transactions with
the !an#.
1@. (mployees in the !an# have the
#nowledge to answer your =uestions.
1E. )he !an# gives you individual attention
1D. )he !an# has operating hours convenient
to all its customers.
1C. )he !an# has your !est interests at heart.
2A. )he employees of the !an# understand
your specific needs.