ABOUT SYNDICATE BANK

Introduction:

Syndicate Bank was established in 1925 in Udupi, the abode of Lord Krishna in coastal Karnataka with a capital of Rs.8000/- by three visionaries - Sri Upendra Ananth Pai, a businessman, Sri Vaman Kudva, an engineer and Dr.T M A Pai, a physician - who shared a strong commitment to social welfare. Their objective was primarily to extend financial assistance to the local weavers who were crippled by a crisis in the handloom industry through mobilising small savings from the community. The bank collected as low as 2 annas daily at the doorsteps of the depositors through its Agents under its Pigmy Deposit Scheme started in 1928. This scheme is the Bank's brand equity today and the Bank collects around Rs. 2 crore per day under the scheme.

The progress of Syndicate Bank has been synonymous with the phase of progressive banking in India. Spanning over 80 years of pioneering expertise, the Bank has created for itself a solid customer base comprising customers of two or three generations. Being firmly rooted in rural India and understanding the grassroot realities, the Bank's perception had vision of future India. It has been propagating innovations in Banking and also has been receptive to new ideas, without however getting uprooted from its distinctive socio-economic and cultural ethos. Its philosophy of growth by mutual sustenance of both the Bank and the people has paid rich dividends. The Bank has been operating as a catalyst of development across the country with particular reference to the common man at the individual level and in rural/semi urban centres at the area level.

The Bank is well equipped to meet the challenges of the 21st century in the areas of information technology, knowledge and competition. A comprehensive IT plan is being put in place and the skills and knowledge of the Bank's personnel are being upgraded through a variety of training programmes to promote customer delight in every sphere of its activity. The Bank has launched an ambitious technology plan called Centralised Banking Solution (CBS) whereby 500 of our strategic branches with their ATMs are being networked nationwide over a 4 year period.

After the collapse of Palali Central Bank Ltd, in 1961, which shook the Banking Industry very rudely, RBI brought steps to eliminate smaller banks and advised the merger of small banks, as a result of this as many as 18 banks merged with Syndicate Bank.

The list of banks merged with Syndicate Bank are;

Sl. No.	Name of the Bank	Year of Est.
1	Nagarkars Apex Bank Ltd	1934
2	Bank of Mangalore Ltd	1931
3	Asiatic Mercantile Bank Ltd	1946
4	Mulki Bank Ltd	1929
5	Pie Money Bank Ltd	1934
6	Catholic Bank Ltd	1925
7	People’s Bank Ltd	1925
8	Hindu Bank Ltd	1925
9	Salem Ammapet Sengander Bank Ltd	1932
10	Kerala Service Bank Ltd	1933
11	Citizens Bank Ltd	1928
12	Coimbatore sri Kannika Parameshwari Bank Ltd.	1927
13	Pollachi Town Bank Ltd.	1937
14	The Oriental Union Bank Ltd.	1929
15	The Kotagiri Bank Ltd.	1929
16	Sri Ranga Raj Bank Ltd.	1929
17	Kothamangalam Nambooari Bank Ltd.	1929
18	South Travancore Bank Ltd.	1929

The Bank started its first ‘All Women Branch’ (Seshadripuram Bangalore branch) in 1962. Mr. T A Pai became the Managing Director of the Bank in 1962 and Mr. T M A Pai was continuing as Chairman of the Bank till 1967. The Bank entered into Foreign Exchange Business in May 1963 by obtaining Foreign Exchange license and started Foreign Exchange Department, giving every service in FX business from 1963. On 21.10.1963 the name of the bank was changed from Canara Industrial Banking Syndicate Ltd. to ‘Syndicate Bank Ltd’.

The Banks Head Office was shifted from Udupi to the present Head Office building in Manipal, 5 Km away from Udupi, in 1964. Dr.T.M.A.Pai converted a barren hillock, called Manipal into cosmopolitan hi-tech village, which has now a number of technical, medical institutions, hospitals, heritage sites etc. The recent additions to these are TA Pai Management Institute (TAPMI), Manipal Academy of Higher Education (MAHE), etc

The Bank was awarded ‘A’ class bank in 1964, by which time the deposit of the Bank grew to Rs.42.00 crore. The Bank started Evening Counters in few metro branches, where banking services was also made open between 5 00 p.m. to 7.00 p.m. in the evening on weekdays to facilitate customers to do their business during the evening time. 1964 Syndicate Bank started Agricultural Finance Dept., the first of its kind among the banking institution in India. The bank logo with an alert dog and interlocking Syndicate Bank in circle with the words faithful & Friendly below started in 1964. The Bank was nationalized on 19.7.1969. The bank started its first Regional Rural Bank called Prathama Bank on 02.10.1975. The list of RRBs sponsored by the bank and their present business details are furnished in the annexure to this write up (Annexure-1). The progress of Bank since its inception and awards won by the bank, particularly after Nationalization is annexed to this write up. (Annexure–2).

Bank went for at par Initial Public Offer of shares worth Rs. 125 crores in 1999, which was oversubscribed 3.68 times, during the time when bank shares were not favourites among investors. Syndicate bank was the first PSB to introduce state-of-the –art banking technology, Core Banking Solutions in 2001. It enabled the bank to provide Telebanking facility, Home Banking facility, Instant funds transfer, single window concept, sweep-in & sweep-out facility, anywhere banking, multi-city cheques etc. Bank went for a Follow on Public issue of Rs. 50 corores during June 2005, with a premium of Rs. 40/- which was oversubscribed 28.34 times.

Major objectives of the Syndicate Bank:

Minimise the impact of crisis in the financial system.

To optimize utilization of supervisory services.

Continuous monitoring and evaluation of the risk profile.

To ensure banks have adequate capital to support all risks.

To expand retail credit.

To open more branches, mostly in urban / metro centres.

To computerize all the branches.

The bank aims to achieve increasing their total business levels.

Perceptions of Syndicate Bank:

Stability of the financial system is the challenge to bank regulators and supervisors.

Capital should not be a substitute for fundamentally inadequate control risk.

Management process.

The Reserve Bank of India has been constantly enhancing the sophistication and efficiency levels of its supervisory process.

Processes of Syndicate Bank:

Off-site surveillance and monitoring data

Market intelligence reports.

Ad-hoc data from external and internal auditors.

Information from other domestic and overseas supervisors.

On-site findings.

Sanctions applied etc.,

Bank level preparations:

Risk management architecture.

Risk profile (level and direction) of bank with business and control risk.

Management information system and information technology.

A scientific asset-liability management system.

An effective and comprehensive risk management system.

Human Resource Development issue.

Risk focused principles of supervisory review.

Four key principles of supervisory review:

Bank level management should assess their overall capital adequacy requirement.

Supervisors should review and evaluate banks capital adequacy and if required, take appropriate action.

Supervisors should ensure that banks operate at capital levels above capital levels the minimum required in accordance with the risks undertaken by bank.

Supervisors should intervene at an early stage and take remedial action if required.

Syndicate Bank’s Mission:

To achieve global deposits on low cost resources by strategic initiatives including bench expansion, aggressive marketing and active involvement of all.

Business:

To achieve global business and attain Rs.240 thousand crore by 2010.

Profitability:

To make every branch a profit centre.

Management of Assets:

To focus on improving the quality of assets portfolio by avoiding slippage of assets to NPA and strive to upgrade the existing non-performing assets.

Human Resources and Organisation Development:

To redefine and redevelop peoples management techniques so as to unleash human potential, drive growth and nurture leadership of high quality corporate governance.

Customer Relationship:

To fine-tune marketing strategies, to provide the customer the ideal banking ambience, to get our branches / offices ISO 9000 complaint.

Syndicate Bank’s Vision:

Consolidating position as a premier public sector bank with increased global outreach.

Emerging as a strong, vibrant and responsive competitor bank.

Embracing state-of-the-art technology and harnessing human potential to effectively participate in the process of nation building.

Serving its constituents and stakeholders as a faithful and friendly financial partner.