Retail Lending Schemes & Product in syndicate Bank

Retail Lending Schemes & Product in syndicate Bank

The Syndicate Bank offers the following lending schemes or retail lending products. There are as follows:

Housing Finance.

Home Improvement Loan.

Can-mobile.

Can-carry

Can-cash

Swarna Loan.

Can-Mortgage

Can-Budget

Teachers loan

Can-pension.

Housing Finance:

Housing finance for purchase of ready building house / flat or construction of a house. There on according to “Syndicate Bank Credit Policy” the housing finance maximum loan amount shall be Rs.50 lakhs and for repairs, renovation and expansion shall be 75% of the project cost with a maximum of Rs.7.5 lakhs.

Sanctioning Authority for Housing Finance:

Sl. No.	Manager	Sanctioning Authority
1.	Senior Manager / Manager Incharge of Small branches	Rs.2.00 Lakhs
2.	Senior Manager / Manager Incharge of Medium branches	Rs.5.00 Lakhs
3.	Senior Manager / Manager Incharge of Large branches	Rs.10.00 Lakhs
4.	Chief Manager	Rs.15.00 Lakhs
5.	AGM’s and ELBs	Rs.20.00 Lakhs
6.	DGMs	Rs.20.00 Lakhs
7.	Circle Head	Rs.50.00 Lakhs

The entire loan together with interest should be repaid in equated monthly installment within a maximum period of 15/20 years from the date of disbursement.

Home-Improvement Loan:

Loan to individual for furnishing the house / flat as home improvement loan. This loan also comes under housing finance scheme. The maximum loan amount sanction is Rs.2 Lakhs. The margin must be 20% of the project cost the loan should be repaid with in a maximum period of 5 years. The processing charge in 0.5% of the loan amount subject to a minimum of Rs.500/- and maximum of Rs.10,000/-.

Can-Mobile:

For purchase of cars, four wheelers, two wheelers, new or used vehicles of new vehicles 90% of the invoice value for used vehicle snot older than 5 years in such case the margin will be 75% of the price agreed to between the sell and buyer. The repayment period not exceeding 72 months from the date of grant of the loan.

Can-Carry:

Loan scheme to individuals for financing of brand new durable utility articles including furniture loan under this scheme can also be considered for purchase of computers especially to the staff of corporate bodies and others. For any salaried person 80% of the invoice value of article may consider as loan under this scheme. The repayment of this loan should be within a period of 3 years from the date of grant.

Can-Cash:

Loan / Advances to individuals against approved shares / debentures / bonds units of mutual funds. To meet investment / domestic personal requirements. It should be ensured that the loan should not utilized for speculative purpose. The loan should not exceeds Rs.5.00 Lakhs per individual subject to the repayment capacity. The repayment must be within less than 60 months.

Swarna Loan Scheme:

Loans to individual (non-priority) against the security of gold ornaments can be granted for purposes such as meeting, meeting expenses and other unforeseen commitment the borrower should be state bank account holder with satisfactory dealings. The rate of advances shall be Rs.300/- per annum. The maximum advance should not exceed Rs.1.1 Lakhs.

Can-Mortgage:

To provide loans against the security of equitable mortgage of property (Land / Building) to the professionals businessman salaried person / individuals for meeting genuine needs. The borrower must have satisfactory dealing with the bank. The 50% on the value of the property proposed to be offered as security as per the valuation report given by the panel value of the bank. The loan along with the interest shall be clear in a monthly installment within a maximum period of 5 years.

Can-Budget:

To meet the genuine personal needs of the proposed borrowers are also called as personal loan. The maximum amount of loan is Rs.5.00 lakhs. The repayment must be in 60 (maximum) equated monthly installment.

Teachers loan scheme:

To meet their genuine personal needs. The incharge of all the bank branches is vested with powers to sanction loan under the scheme upto 6 months. Net salary subject to a maximum of Rs.1,50,000/- with processing charge of 1% on the loan amount. The repayment of entire loan amount be cleared within a maximum of 36 months in monthly installment.

Can-Pension:

To meet the cost of medical expenses and other genuine personal needs of pensions. The pension must be ex-employee of staff or central government the sanctioning authority 15 led with branch incharge the amount in size times of the amount of monthly pension subject to maximum of Rs.5,00,000 and to be repaid in 24 equated monthly installment.

PRODUCTS AND SERVICES IN SYNDICATE BANK

Products and Services:

Global Cards

Keeping the liquidity needs of the customers in mind, SyndicateBank has launched a series of global cards. Compact and convenient, these cards add “extra power for the customer purse. The Card can be used at all ATMs of Cash Tree network and terminals / Merchant Establishments enabled for accepting VISA Cards.

SyndicateBank Global Debit Card brings customer the convenience of accessing his/her money ANYTIME & ANYWHERE Globally. He / she can transact in any currency, but pay in Indian Rupees. It is a CONVENIENT e-WALLET valid in India & abroad with VISA Power. The Card is offered free of charges for all eligible accounts with any of Syndicate-banking (CBS) branches and select Non-CBS branches of the Bank.

E-banking Products and Services

SyndicateBank is committed to improving the quality of service to its customers through extensive induction of technology in its day-to-day operations. Over 1800 branches at 1000 centres are networked under CBS and are enabled to extend e-banking services from any of the CBS branches in the Country.

Some of the products and services which are being extended at

e-banking branches are:

Multi-City Accounts (Current and SB Accounts) where account holders enjoy the benefit of Multicity Cheques which can be tendered at any CBS branch and a lot of concessions in service charges.

Variants

Synd Silver Current Account- Monthly MAB Rs. 25000/-

Synd Platinum Current Accounts- Monthly MAB Rs. 200,000/-

Multicity SB Account- Monthly MAB Rs. 25000/-

Flexi/Sweep.in.Sweep-out Accounts which combine the liquidity of a Current /SB Account with the earning capacity of a Term Deposit.

Products with Sweep-in-Sweep-out facility are:

Synd Flexi Current Account

Minimum Average Balance: Rs.1 00,000/-

Any balance above this is swept out to TD of 15 to 45 days on a daily basis

in units of Rs. 25000/- and is swept in from the TD as and when funds are

required in the account.

Interest is paid on the amount invested in TD for periods of 15 days or

more at the rate applicable, for the period it was in TD.

Premium Savings Account

Minimum average monthly balance of Rs.10,000/-

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

days in units of Rs.1 000/-

As and when there is need for funds in Savings Account, the fixed deposit

is broken prematurely without any penalty in units of Rs.1000/- and swept

into the savings account to the extent of meeting the need

Special Premium Savings Account

Minimum average monthly balance of Rs.20,000/-.

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

of Rs.1000/-for 1 yr. 1 day.

As and when there is need for funds in Savings Account, the fixed deposit

is broken prematurely without any penalty in units of Rs.1000/- and swept

into the savings account to the extent of meeting the need.

Super Premium SB Account

Monthly average minimum balance of Rs.1 00,000/-is to be maintained

under the scheme.

The balance available in the account in excess of Rs.1 00,000/- shall be

swept out into fixed deposits for a period of 3 years in units of Rs.10,000/-.

The rate of interest payable on the swept out amount shall be the rate

applicable for 3 years term deposit as on the date of sweep-out. The

interest amount will be credited to the Super Premium Savings Bank

account on half-yearly basis

As and when there is need for funds in the Synd-Super Premium Account,

the fixed deposit is broken prematurely in units of Rs.10,000/- and swept

into the savings account to the extent of meeting the need. This Sweep-in

will be based on last in first out

Multicity Cheque facility is also available to the customer.

MONETARY POLICY IN BANKING

Monetary Policy in banking

The Influence of monetary policy, which in recent times in the United States had been almost the exclusive province of the United States has been almost the exclusive province of the Federal Reserve, operate on aggregate spending in the economy. I believe the fundamental objective on monetary policies is to provide conditions conducive to an appropriate rate of growth in demand for services, consumption goods, and investment goods. This rate of growth should be equal to the ability of the economy to produce such goods and services. I admit that it is far easier to state this objective than to achieve it. The distributional effects to monetary actions on various sectors are not usually the primary goals of the policymakers. Although such distributional effects are much less predictable than are the effects on aggregate demand.

The channel through which monetary actions affect aggregate demand is by varying the quantity of money made available to the private sector of the economy. If money is provided at a rate greater than the at which businesses and individuals desire to acquire currency and demand deposit balances, then the effort to exchange these excess money balances for other assets will increase aggregate demand for goods and services. Conversely, if businesses and individuals desire to acquire currency and demand deposit balances faster than the rate at which the total amount of money is increasing, their efforts to build up such balances will result in a decrease in the demand for goods and services.

The primary tool of the Federal Reserve in the conduct of monetary policy is buying and selling securities in the open market. It is useful to summarize shout-term monetary actions within the framework of a concept called the monetary base. When the Federal Reserve increases its holdings of Government securities, which is the dominant source component of the monetary base, the primary uses of the base, currency held by the public and bank reserves, are increased. The growth trend of the money stock, even though shot-term movements in the money stock may also be influenced by changes in time deposits and U.S Government deposits at commercial banks.

Studies of the money creation process conducted at the Federal Reserve Bank of St. Louis as well as elsewhere indicate that the stock of money supplied to the economy could be adequately controlled on a monthly average basis. As techniques for establishing the appropriate amount of money to supply under varying conditions are improved and gain wider acceptance, the fundamental objectives of monetary policy, as I view them, can be met with greater reliability than in the past.

I think it is important to note that during the process of monetary expansion, the credit policies of commercial banks, interacting with forces emanating from the nonbank public, determine the sectors that are first affected. I will return shortly of further discussion of this process.

Awards or Milestones in Syndicate Bank

Memorable Milestones in a 82-year journey:

SyndBank Services (BPO)

The Bank has floated “SyndBank Services Limited (BPO)” as a wholly owned subsidiary of SyndicateBank. This BPO Company undertakes the following activities:

Facilitating customers to file their Income Tax Returns,

Undertaking Back Office functions relating to Bank’s Debit / Credit Card /

Bancassurance Business.

Undertaking Credit Rating of Bank’s borrowers and managing Back Office

functions relating to Government Business Transactions and issuance of Interest

/ Dividend Warrants.

Follow-up of overdue accounts under retail loans by sending Notices/SMS

messages and telecalling the customers to maintain a healthy retail credit

portfolio of parent Bank

Providing guidance and maintenance of records for PF, Pension and Gratuity

Trust.

TECHNOLOGY INITIATIVES

1965	Installed first Data Processing machine at the Head Office.
1985	ALPMs introduced
1987	In House Computer at H.O. upgraded to ICIM 6000/40
1991	Established connectivity to SWIFT
1993	First totally computerised branch made operational at Nehru Place Delhi
1995	E-Mail facility introduced at 26 branches
1996	First Telebanking facility introduced at South Block Branch New Delhi
1996	First ATM installed at Gandhi Nagar, Bangalore.
1997	Bank's website launched
1998	Joined Indian Financial Network (INFINET) and VSAT Network
2001	Centralised Banking Solution (CBS) under the brand name "Syndicat-e-banking" launched
2004	Internet Banking launched as one more Delivery Channel for CBS customers
2005	Syndicat-e-banking extended to 245 Branches/Offices as at 31.03.2005 covering 105 centres SyndBillPay Scheme & Excise and Service Tax payments scheme launched through Internet Banking
2006	Syndicat-e-Banking Branches/Offices extended to 529 in 212 centres as at 31.03.2006
2007	CBS Branches/Offices increased to 1508 in 801 centres and covering 91% of Bank's business as at 31.03.2007 101 Branches cut over to CBS on a single day 51 ATMs commissioned on a single day
2008	CBS Branches/Offices increased to 1829 in 1033 centres. The business under CBS rose to over 95% as at 31.03.2008. SMS Banking launched during January 2008

1925	On 10.11.1925, the business of the Bank commenced in Udupi with the name "Canara Industrial and Banking Syndicate Ltd.," a joint Stock Company with just one employee.
1928	First branch of the Bank opened at Brahmavar in Dakshina Kannada District
1937	Bank became a member of the Clearing House for the first time at Bombay.
1946	29 branches opened in a single day in rural areas.
1953	Took over the assets and liabilities of 2 Local Banks viz. Maharashtra Apex Bank Ltd. and Southern India Apex Bank Ltd. 20 Banks merged with the Bank during the period 1953-1964.
1957	100th branch opened at Ilkal in Karnataka
1962	Entered Foreign Exchange business by opening Foreign Exchange Department at Bombay.
1963	Name of the Bank changed from "Canara Industrial & Banking Syndicate Ltd." to "Syndicate Bank Limited". Head Office was shifted to Manipal on 19.4.1964.
1966	Economic Research Department set up. One of the first few Banks to emphasise on research in Banking even before nationalisation.
1969	Bank had 306 branches at the time of nationalisation of which 66% were in Rural and Semi Urban centres. Opened a branch at Port Blair in Andaman and Nicobar islands
1970	First Staff Training College started at Head Office
1971	First specialised branch in Foreign Exchange opened at Delhi.
1972	Opened a branch at Lakshadweep islands
1976	First overseas branch opened at London on 17.8.76.
1983	Took up management of Al Shabei Finance and Exchange Co. in Doha
1984	Took up management of Musandam Exchange Co. in Muscat
1984	1000th branch opened at Delhi Hauz Khas
1989	1500th branch opened at Kanakumbi
1991	First Specialised Industrial Finance Branch opened at Mumbai.
1995	First Specialised Housing Finance Branch opened at Mangalore
1999	Bank raised Capital of Rs.125 Crore in Oct.1999 from more than 4 lakh shareholders
2000	First Specialised Capital Market Services branch opened at Mumbai
2001	First branch under CBS (Core Banking Solution) started operation at Bangalore.
2002	Centralised Banking Solution under the brand name "Syndicate-e-banking" launched at Delhi, Mumbai, Bangalore and Manipal.
2003	Bank enters into MOU with Bajaj Allianz for distribution of Life Insurance products.
2003	Toll Free Voice Mail System for redressal of grievances introduced.
2004	Bank ties up with United India Insurance Co. Ltd. for distribution of Non-Life Insurance products
2004	Utility bill payment services through Internet banking introduced.
2005	Introduced On-line reservation of Railway Tickets through Indian Railway Catering & Tourism Corporation Ltd. (IRCTC) for Internet banking customers of our Bank.
2005	Bank approached the Capital Market with Rs.5 Crore equity shares at a premium of Rs.40 through Book building route Bank collected Rs.250 Crore and the issue was oversubscribed by 29.275 times.
2005	Amalgamation of 4 Regional Rural Banks of Karnataka to form Karnataka Vikas Grameena Bank with Head Office at Dharwad.
2005	Implementation of Venture Capital Scheme of SMALL FARMERS AGRI-BUSINESS CONSORTIUM (SFAC) Entered into MOU with SFAC for promoting of investments in Agri-business products.
2006	Bank signs MOU with M/s.CMC Ltd., for making Syndicate Institute of Bank Management (SIBM) a center of excellence of global standards and provide quality management education.
2006	500th Branch of SyndicateBank in Karnataka opened at Navnagar, Bagalkot.
2006	2000th Branch of SyndicateBank opened at Tondiarpet, Chennai on 23.03.2006.
2006	Inauguration of SyndBank Services Limited, the 1st BPO outfit of a Nationalised Bank, a wholly owned subsidiary of SyndicateBank & 525th CBS Branch by Hon'ble Union Minister of Finance, Sri P Chidambaram on 24.03.2006 at Bangalore.
2006	2006th Branch of SyndicateBank opened at Gangtok, Sikkim on 27.03.2006
2006	First Branch opened in Arunachal Pradesh at Ita Nagar on 16th October 2006
2006	Branches opened for the first time in 19 additional districts
2007	First Branch opened in Nagaland at Dimapur on 17.03.2007
2007	First Branch opened in Mizoram in Aizawl on 29.03.2007
2007	Branches opened for the first time in 13 additional districts
2007	Global Business Crossed Rs.1,60,400 Crores
2008	First Branch opened in Tripura at Agarthala on 11.01.2008
2008	Branch network expanded to all States and UTs except Manipur & Daman Diu
2008	Branches opened for the first time in 6 new districts
2008	2200 Bank branches including 2000 CBS Branches.

Pigmy Deposit Scheme - Bank's Brand Equity

· Launched in 1928 by Dr.T.M.A.Pai, one of the Founders to encourage the habit of thrift and small savings. Pigmy Scheme symbolises the description of the Bank as "a small man's big Bank" even today.

· Bank collects as low as Rs.5 daily for 72 months at the doorsteps of 10.36 lac depositors through its more than 4000 Pigmy agents.

· Pigmy deposits of the Bank crossed Rs.1800 crore.

Nationalization - Bank's Catalytic Role

1961	Industrial Finance Department was set up to encourage advances to Small Industries and Entrepreneurs in keeping with the policy of assisting the common man.
1968	Bank's commitment to the philosophy of social lending since inception provided the spark for introduction of social control measures in the country . 32% of the Bank's branches were in rural areas as against 22% for the entire Banking system.
1969	Bank was nationalised on 19th July 1969. Bank was acknowledged as a live example of mass banking and as a powerful catalyst of social change. Nationalisation therefore merely meant change of ownerhsip.
1995	Established Hi Tech Agriculture Branches

Pioneer in Rural Development

1926	Established in a rural milieu to financially assist handloom weavers
1964	First Bank to venture into agricultural financing when the Banking system considered it risky and unconventional.
1966	Promoted Syndicate Agriculture Foundation - a voluntary organisation of farmers - to disseminate scientific farming techniques.
1967	Agri Card - a ready credit facility for farmers - launched.
1973	Bio Gas finance scheme introduced in collaboration with Khadi and Village Industries Commission to popularise non conventional source of energy. Farm Clinics established.
1974	Syndicate Farmers' Service Society was organised by the Bank in Hiriadka in South Kanara based on the recommendations of the National Commission on Agriculture.
1975	Sponsored the country's first Regional Rural Bank - Prathama Bank opened on 2.10.1975 - in Moradabad in U.P. Bank has so far sponsored 10 such RRBs which are all profit making and act as trend setters in energising the rural economy. After amalgamation there are now 5 Grameena Banks in 5 states, covering 30 districts
1982	Jointly sponsored the first RUDSETI (Rural Development and Self Employment Training Institute) at Ujire in Dakshina Kannada (Karnataka). There are 23 such Institutes in 14 States today providing free entrepreneurship training to unemployed youth. Intensive Rural Development branches established.
1989	Bank adopted Service Area Villages to bring about alround development.
1998	Kisan Credit Card launched
2000	In commemoration of Platinum Jubilee, Syndicate Rural Development Trust established (to mark the Platinum Jubilee of the Bank) for pursuing rural development initiatives with initial corpus of Rs. 50 lacs. Opened 8 Rural Enterpreneurship Development Institutes at Manipal, Kumta, Bellary, Belgaum, Moradabad, Kadapa, Kurnool and Kollam. Scheme for financing Solar Water Heating system Launched.
2001	Syndicate Laghu Udyami Credit Card launched.
2003	SSCC: Synd Swarozgar Credit Card- A new product for financing Small Artisans, Handloom weavers, Fisherman, Service sector, Self employed persons, Rickshaw owners and other Micro entrepreneurs to meet working capital or block capital or both and also consumption needs has been launched.
2004	SKSCC: Syndicate Kissan Samrudhi Credit Card- A new product launched for meeting production and investment credit needs of farmers for agriculture & allied activities and also to meet their consumption requirements.
2005	Scheme for financing Commercial Horticulture Projects under the schemes of National Horticulture Board has been launched to encourage farmers to go in for diversification in agriculture essential for increasing their income level. Scheme for financing SC/STs for rainwater harvesting has been launched.
2006	Syndicate General purpose Credit Card launched. SyndJaiKisan: A hassle free term lending scheme has been launched for the benefit of the farmers, to meet their entire farm related investments, contingent investments related to farming, including repayment of high cost private debt and consumption needs to meet pressing social obligations. Scheme for financing tenant farmers: Two separate schemes have been launched to provide need based credit to tenant farmers through Joint Liability Group (JLG) approach as well as individual approach.
2007	"SyndSmallCredit"- an innovative scheme with doorstep banking facility to provide need-based credit to entrepreneurs of small means. The product part of financial inclusion, by bringing all eligible entrepreneurs into bank's fold. "SyndShakti"-A new product launched by the Bank to extend need-based credit to artisans and self-employed persons including Carpenters, Plumbers, Auto Technicians, Packaging Technicians, etc., for purchase of power toolkits to mechanize and enhance efficiency of their operations their operations and as a result improve their income level. "Financial Inclusion:" Launched a campaign to achieve 100% financial inclusion. A booklet containing comprehensive guidelines to augment the process of total financial inclusion released. "Water Conservation initiatives:" To promote Water Management and conservation measures among the villagers, Bank started initiatives for clearing and cleaning of village ponds in the selected service area villages.