The document analyzes Syndicate Bank from 2009 to 2019. It found that gross and net NPAs increased until 2018 due to forgery by bank officials and top management granting loans without proper checks. However, in 2019 NPAs declined as the bank established specialized recovery units, deployed more officers to high-risk accounts, and focused on priority sector lending. While past issues involved improper practices, recent changes indicate the bank is working to reduce NPAs through stricter monitoring and processes.

1. Case Study on Syndicate Bank
(From Financial year 2009 to 2019)
Presented by:
Shubham Chugh 19mbf5001
Km. Priyanka 19mbf5022

2. Objectives of Study…
To studythe loopholes ofSyndicatebankas to whatreasons wereresponsiblefor an
increaseof Non-performingassets.
To studythe non-performingassets trend alongwiththeir futurepredictionsin Syndicate
BankandYes Bank.
To studythe modus-operandiof SyndicateBankas one ofthe largest IndianPublicBanking
sector.
To study various measures been taken by the syndicate bank
for recovery of frauds to overcome the losses caused due to
these bad loans.

3. Modus - Operandi…
The bank’s official’s i.e. general manager and the staff officials are booked for forgery and immoral
course of conduct after finding that there has been a misappropriation of about 48 crore belonging to
Karnataka State Agricultural Marketing Board [KSAMB] as shown on 20th Jan, 2020.
The CBI has booked 7 people including 3 bank employees and executives of a firm engaged in
distribution of coal and mineral for an alleged bank fraud of Rs 30 crore. Cases under various sections,
including cheating and criminal breach of trust and under Prevention of Corruption Act were
registered against the suspects.
Syndicate Bank wrote off ₹ 882.64 crore in the fourth quarter (the three months ended 31 March 2018)
because of fraud at its branches in Jaipur over the last four years it was found out that a few hundred
accounts had been opened, and loans of a few crore rupees given to each on the basis of fraudulent
documents, such as fake or non-existent cheques, letters of credit and insurance policies. According to
a senior official at Syndicate Bank, the lender detected some signs of a fraud during the audit of its
October-December quarter results that took place in January.

4. Sector wise Loan Disbursement…
 MSME Sector loans
In case of MSME loans this bank is providing great opportunities as
no document charges for loan upto 2 lac, easy availability, for working
capital and term loan facility.
 Retail sector Lending
Providing easy loan for setting up small business, in buying of raw
material, with easy documentation and also an easy repayment of
about 7 to 9 years from the date of lending.
 Agriculture lending
As working well with these loans dealing, as stated in ANBC is 18 %
against the regulatory syndicate bank has achieved 18.94 percent of
their agriculture lending.
 Priority sector growth has been 1% and your Bank has achieved 40.54%
of ANBC as against regulatory requirement of 40%.
Priority Sector Lending

5.  From March, 2007 to March, 2018 there has been an increase in gross Non-
performing asset from around 1559.81 crore to 25758.60 crore, gross NPAs
mounting percentage from 2.95 percent to 11.53 percent for the same period.
 From March, 2007 to March, 2018 there has been a boost in Net Non-performing
asset which is from 391.01 crore to 13239.46 crore, net NPAs escalating
percentage from 2.95 percent to 6.28 percent for the same period.
 There has been a recovery seen in the year 2019 as its gross NPAs are reduced
from 25758 crore in 2018 to 24680 crore in the year 2019 thus showing reduction
of about 1078.23 crore of NPAs and increasing their profits.
Gross Non-Performing Assets…

6. Loopholes with Syndicate Banks…
Syndicate Bank is amongstthelargestpublic sector bankafter its mergerwith
CanaraBank,it isseenthatit is alwaystheTopmanagementwhoisinvolved in
unfair practicesof grantingthe loanstothecustomers,Newsshows thatin
Syndicate Bank thisbank is notinvolved inproperandsystematicdisbursalof loan
tothecustomer,thereis no after checkingof loanamountgrantedto the customer,
Theanother issue was ofSyndicate bank is asit is a publicsector,therearelot of
delaysin bankingoperations,as in today’stimewhereservicesplay a majorrole,
thus makingSyndicate Bank lacking behindotherprivate sectorbanks i.e.HDFC
Bank,or ICICI bank,etc.theafter servicesprovidedby Syndicate Bank is not up to
that leveland wheneverthere isany defaultthenon-performingassetsof the bank
starts risingand thus leads tofalling in financial crises.

7. Ways Implemented To Overcome NPAs Problem…
Creation of a dedicated
Recovery and Resolution
Business Unit (RRBU) in
order to facilitate timely and
faster NPA resolution and
recovery a specialized
vertical was created.
Under RRBU, there are separate units for Stressed
Asset Management to monitor recovery/ resolution
of NPA accounts of `5.00 crore and above and a
Recovery Division which monitors recovery and
resolution of NPA accounts of below `5.00 crore.
Separate legal
Department undertakes
intensive follow up of
DRT /Suit filed accounts
and decreed debt
accounts.
During 2018-19, 1395
officers were deployed
across the Bank in order
to have focused
attention on recovery of
NPAs
Bank has opened 11
new Reviewing Officials,
with the objective of
focused business
development and better
monitoring and control.
DRT Cells are
established at all DRT
centers with redefined
roles of the existing
ARMBs.
Monitoring progress of
SARFAESI action in all
accounts involving
amount below `5.00
crores.

8. Conclusion…
 In the past reports the bank was having an increasing trend in the
Gross and Net non-performing assets till the financial year 2018, as it
was seen that bank officials were involved in the forgery activities in
collaboration with the borrowers. The top management was also at
some places were involved in unfair practices, constituting its major
loophole.
 But in the year 2019, there has been a decline in the amount of non-
performing assets as the Syndicate Bank has emerged RRB Units
which are directly monitoring these Loans with strict and proper
vigilance, and proper lending of the loan in the priority sector showing
that bank is working towards the society, providing various benefits to
the borrowers.
**In the end, we would say that bank is working better from their past and
the same is been seen through decreasing NPA**