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“Faithful Friendly” 

Priyanka Malwat B-31

Rahul Mohod B-32

Girish More B-33

Rahul More B-34

Vinod Moze B-35

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BANKING INDUSTRY OVERVIEW

KEY AREAS:• Foreign banks will have opportunity to own up to 74% of Indian private banks.

• Foreign banks will have the opportunity to own 20% of govt owned banks.

• Banks have to comply with Basel 2 norms.(Basel is measurement of solvency of bank,

categorizing the asset based on the riskiness of asset)

CAR (capital adequacy ratio) of 12% by March 2010.

 

According to rough estimate CAR of 12% by March 2010, the public sector banks wouldrequire an additional of Rs 3000 bn. This is arrived at after considering requirements of capital to

fund growth, expected NPA write off and Investment in IT and other infrastructural hurdles like

restriction in capital availability (due to high govt ownership), restriction on credit deploymentand restrictive labor law, weak corporate governance have impaired the ability of Indian public

sector banks. Also, there are stringent restriction on fdi and fdi participation in public sector 

 banks

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BRANCH NETWORK 

The total network of branches stood at 2494 branches (including London Branch) as at 31.03.2011. Thedomestic branch network consisted of 803 Rural, 589 Semi urban, 551 urban and 550 metro & port

town branches. Out of the total network of branches 708 branches are in underbanked districts and 670 branches are in minority concentration districts.

During the year 2010-11, 188 General Banking branches were opened. Out of these, 154 branches were

located in Tier 3-6 centres including 131 branches opened under the Financial Inclusion programme of 

the Govt. of India.

Out of the new branches opened as above, 76 Branches are in under-banked Districts

and 36 Branches are in Minority Concentration Districts

All the domestic branches are networked under CBS.

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SWOT Analysis

Strength

1. Financial products for rural sector 

2. Innovative schemes for agriculture sector 

3. Emphasis on I. T support

4. Has employee strength of over 25,000 employees

5. Syndicate Bank has achieved a rare feat of opening one

million customer accounts in a span of 3 months

Weakness

1. Less penetration in the country

2. Low branding and advertising as compared to other banks

3. Lack of retail banking and low customer service as compared to

 bigger banks in India

Opportunity

1. Small scale business banking

2. International banking

Threats

1. Economic crisis

2. Highly competitive environment

3. Stringent Banking Norms

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Competition

Name Last Price Market Cap. Net Interest Net Profit Total Assets

(Rs. cr.) Income

SBI 2,205.60 140,055.51 81,394.36 8,264.52 1,223,736.20

Bank of Baroda 795.5 31,248.04 21,885.92 4,241.68 358,397.18

PNB 965.2 30,578.71 26,986.48 4,433.50 378,325.25

Canara Bank 503.15 22,289.55 23,064.02 4,025.89 336,078.76Bank of India 372.6 20,389.42 21,751.72 2,488.71 351,172.55

Union Bank 241.65 12,670.49 16,452.62 2,081.95 235,984.44

IDBI Bank 109.5 10,781.59 18,600.82 1,650.32 253,376.80

Indian Bank 237.5 10,207.04 9,361.03 1,714.07 121,718.31

Allahabad Bank 189.9 9,043.33 11,014.69 1,423.11 151,286.36

Oriental Bank 280.55 8,185.36 12,087.82 1,502.87 161,343.38

Corporation Ban 477.25 7,069.63 9,135.25 1,413.27 143,508.59

Andhra Bank 123.5 6,910.82 8,291.28 1,267.07 108,900.73

Central Bank 104.65 6,766.74 15,220.57 1,252.41 209,757.32

Syndicate Bank 111.35 6,383.54 11,450.86 1,047.95 156,538.79

STP

Segment Urban and Rural banking

Target Group All age and earning groups

Positioning Complete Banking solutions

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Management - Syndicate Bank 

Name Designation

Basant Seth Chairman and Managing director 

Ravi Chatterjee Executive Director 

A S Rao Director Dinkar S Punja Director 

A R Nagappan Director 

Dilip Kumar Saxena  Non Official PartTime Director 

M Anjaneya Prasad Executive Director 

V K Nagar Executive Director 

H Pradeep Rao Director 

Narendra L Dave Director 

Ramesh L Adige Director 

Bhupinder Singh Suri Director 

Jagdish Raj Shrimali  Non Official PartTime Director 

Source : Dion Global Solutions Limited

ACCOLADES/AWARDS - The Bank received the National Award for outstanding performance in lending to Micro

Enterprises from the Ministry of Micro, Small and Medium Enterprises, GOI, New Delhi in

recognition of its performance in financing Micro Enterprises. The award was handed over by

her Excellency, Smt. Pratibha Devisingh Patil, President of India.

 - Andhra Pragathi Grameena Bank (sponsored by Syndicate Bank) received the Award for ‘Best

  bank in the State from the Govt. of A.P. for its performance in the field of agricultural

development.

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THE CRR and SLR as on 17.2.2012

• CRR – 5.5% -- Affects Liquidity

• SLR – 24% -- Affects Liquidity and secure insolvency

• REPO RATE – 8% -- Affects Lending rates and Liquidity

• REVERSE REPO RATE – 7% -- Affects Liquidity

Ratios

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07  

ProfitabilityRatios

Net ProfitMargin 8.5 7.22 8.83 9.65 10.9  

Return onLong TermFund(%) 125.48 162.39 174.39 176.94 145  

Return onNet

Worth(%) 15.74 15.57 19.86 21.94 24.6  AdjustedReturn onNetWorth(%) 15.74 15.57 19.86 21.94 22.49  

BalanceSheetRatios

CapitalAdequacyRatio 13.04 12.7 11.37 11.22 11.74  Advances /Loans

Funds(%) 77.85 73.12 76 72.59 77.13  DebtCoverageRatios

CreditDepositRatio 78.06 73.82 68.98 66.58 66.64  

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InvestmentDepositRatio 26.95 27.28 27.77 30.67 32.14  

LeverageRatios

CurrentRatio 0.01 0.02 0.02 0.03 0.02  

Quick Ratio 27.33 23.62 13.54 12.1 10.69  

Cash FlowIndicator RatiosDividendPayoutRatio NetProfit 23.52 22.45 20.07 20.16 23.55  

DividendPayoutRatio CashProfit 22.03 20.25 17.85 17.97 21.09  

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07  

EarningsPer Share 18.28 15.58 17.49 16.25 13.72  

Book Value 116.12 100.06 88.03 74.05 61.02  

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Latest News:-

Syndicate Bank close to striking deal with Birla Sun Life for insurance foray 

Mumbai: Indian state-run lender Syndicate Bank is close to signing an agreement

with private life insurer Birla Sun Life Insurance to venture into the insurance sector,

 The Economic Times reported citing an unidentified source, adding that the insurer

has already offered an advance commission of Rs 6 billion based on future sales to

the Indian lender.

Syndicate Bank net up 32%

Manipal-headquartered public sector lender Syndicate Bank reported a 32 per cent rise in net profit to Rs

338 crore for the third quarter ended December 31, 2011, compared with the corresponding quarter last

year. Operating profit rose 30 per cent to Rs 923 crore as against the same period last year.

Syndicate Bank to get Rs 539 crore fund infusion from government

 NEW DELHI: State-owned Syndicate Bank today said it will raise up to Rs 539 crore through issue of 

 preferential shares to the Government of India.

The bank has initiated the process to raise capital by issue of shares on preferential basis to the

Government of India or LIC, Syndicate Bank said in a statement.

BANK’S BUSINESS GROWTH

Total Business

The Global Business of the Bank increased to Rs.2,08,476

crore as on 31st March 2010 from Rs.1,98,380 crore as

on 31st March 2009, while domestic business grew to

Rs.1,92,288 crore in 2009-10 from Rs.1,82,853 crore in

2008-09.

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Deposit Growth

Global Deposits of the Bank grew to Rs.1,17,026 crore in

2009-10 from Rs.1,15,885 crore in 2008-09. The domestic

deposits increased to Rs.1,09,689 crore in 2009-10 from

Rs.1,08,688 crore in 2008-09.

Credit Expansion

The domestic credit of the Bank increased to Rs.82,599

crore as on 31-03-2010 from Rs.74,164 crore as on

31-03-2009, registering a growth of 11.37%. Global

advances of the Bank increased to Rs.91,450 crore as

on 31-03-2010 from Rs.82,495 crore as on 31-03-2009,

registering a growth of 10.86%.

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