Syndicate Bank was established in 1925 in Udupi, India by three visionaries to provide financial assistance to local weavers. It has since grown to be a major bank in India with over 500 branches networked nationwide. The bank offers various deposit and loan products for individuals and businesses, including savings accounts, fixed deposits, recurring deposits, education loans, and agricultural loans. It has focused on rural development and providing banking services to common people. The bank is upgrading its technology and skills through initiatives like Centralised Banking Solution to improve customer service across its branches.

1. Syndicate Bank
Syndicate Bank
Head Office: Manipal - 576104.
Brief History
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 mobilizing 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 grass root 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. 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.
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2. Syndicate Bank
PRODUCT & SERVICES
I] DEPOSITS: -
a) Savings Bank Account
These accounts are designed to help the individuals (personal customers) to inculcate
the habit of saving money and to meet their future requirement of money. Amounts can
be deposited/withdrawn from these accounts by way of cheques/ withdrawal slips. It
helps the customers to keep minimum cash at home besides earning interest. These
accounts can be opened by eligible person/s and certain organisations/agencies (as
approved by RBI)
As required by law, while opening SB account, the Bank will satisfy itself about the
identity. Including verification of address, of a person/s seeking to open an account, to
assist in protecting the prospective customer/s, members of the public and ourselves
against fraud and other misuses of the banking system. The Bank requires a satisfactory
introduction of the person/s opening the account by a person acceptable to the Bank.
Documents required for opening an account: -
• Two Recent photographs of the person/s, as per RBI directives.
• Permanent Account Number (PAN) or General Index Register (GIR) Number or
alternatively obtain declaration in Form No.60 or 61 as per the Income Tax Act
(vide Section 139 A) from the person/s opening the account.
• Current gas/telephone/ electricity bill or voter's identity card or driving license or
passport etc.
The account holder is required to maintain certain minimum balance in the account, as
specified by the Bank from time to time, separately for computerised and non-
computerised branches and also depending on, whether account holder wants to avail the
cheque book facility or not. Non-compliance of this would attract service charges.
Interest at 3.50% p.a. is presently paid on half yearly basis depending on minimum
balance between the 10th day and last day of the month, with a minimum of
Re.1/-.Cheques, dividend warrants drawn in the name of account holder/s will only be
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3. Syndicate Bank
collected through this account.Instruments endorsed in favour of the account holder/s will
not be collected through savings bank account
Business transactions shall not be routed through Savings Bank Account. If routed, the
Bank will recover the interest paid and may also close the account. The Bank has the
right to close any undesirable/unremunerative account without giving any reason by a
simple notice to the account holders
b) Special product
1) Premium Savings Account: - The Bank has introduced a Premium Savings Account
at e-banking branches that combines full safety, easy liquidity and highest possible
interest. The salient features of the scheme are as under
• A unique 'Sweep out, Sweep in' facility offered at our e-banking branches ensures
that while the customer's money earns solid interest as a fixed deposit, it turns
liquid to meet his urgent needs. That too at no extra cost.
• Average monthly balance of Rs.10,000/- to be maintained in the Premium
Savings Account.
• Balance available in the account in excess of Rs.10000/- on any day gets
automatically swept out into a fixed deposit for 180 days in units of Rs.1000/-.
• In the event of shortfall in SB for meeting your clearing cheques or for other
urgent needs, the fixed deposit is swept back into the Premium Savings Account
in required number of units of Rs. 1000/- free of cost.
• No penalty is charged for breaking the fixed deposit prematurely. However, the
amount swept out earns interest for the period run at the applicable rate.
• Even while breaking the fixed deposit, only the most recently converted fixed
deposit is first broken to minimise interest loss to the customer.
• Only those amounts swept out of your Premium Savings Account are eligible for
sweep in and not other fixed deposits.
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• When fixed deposits mature at the end of 180 days, the Bank will renew the
principal every 180 days while crediting the interest to the savings account
Rs.100/-per month is levied as service charges whenever the monthly average
balance in the Premium Savings Account goes below Rs.10000/-
2) Multi-City Current Account: -
The following are the 3 variants of Multi-City Current Accounts:
Sr.no. Name
Monthly Average Balance
(MAB) Rs.
I Synd Silver Current Account 1,00,000
II Synd Gold Current Account 2,00,000
III Synd Platinum Current Account 5,00,000
• All third party cheques shall be ‘Account Payee’ crossed and will be payable at
par at all our CBS centres.
• There is no upper limit for the transactions through cheques as long as the
cheques are ‘Account Payee’ crossed.
• Self-cheques can be paid in cash up to an aggregate of Rs.50,000/- in a day at all
the CBS branches other than the home branch.
3) Multi-City Corporate Account: - A Corporate / business account having OD limit of
Rs.10.00 lacs and above.
• The multi-city account to be opened with a sweep-in and sweep-out facility linked
to the OD account.
• The minimum balance to be maintained in the multi-city account is Rs.1,00,000/-.
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5. Syndicate Bank
• No chequebook shall be given to the OD account and all the transactions are to be
routed through the multi-city account.
• All third party cheques shall be ‘Account Payee’ crossed and will be payable at
par at all our CBS branch centres.
• No upper limit is fixed for transactions through A/C Payee cheques.
• Self-cheques can be paid in cash up to an aggregate of Rs.50, 000/- in a day at all
the CBS branches other than the home branch.
4) Multi-City SB Account: - This facility is to be offered to high net-worth Savings
Bank customers of the Bank.
• The minimum average balance (MAB) to be maintained in the account is
Rs.25,000/-.
• All third party cheques shall be crossed ‘Account Payee’ and will be payable at
par at all our CBS branch centres.
• No upper limit for transaction through A/C Payee cheques.
• Self-cheques can be paid in cash up to an aggregate limit of Rs.50,000/- in a day
at all the CBS branches other than the home branch.
The chequebooks issued to the Multi city account holders will be personalized
chequebooks.
c) Term Deposits
1) Fixed Deposit: - A regular interest-earning scheme. A flexible and convenient
deposit scheme, which ensures that your money never remains idle. Even very small
amounts earn interest for very short periods. Yes. You can deposit an amount of just
Rs.1000/- for a period as short as 15 days and make it grow.
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6. Syndicate Bank
Salient features of the scheme are:
• Minimum deposit Rs.1000/-
• Deposits accepted for periods ranging from 15 days to 120 months.Option
available for receiving monthly interest at discounted rates or quarterly interest.
• Premature withdrawal of deposit is permitted any time subject to payment of
prescribed penalty.
• Loans available up to a maximum of 95% of the deposit amount depending on the
length of the unexpired period of the deposit.
• Senior Citizens (above 60 years of age) are eligible for an additional interest of
0.5%.
• Nomination facility available.
2) SyndTaxShield Deposit Scheme: - The new product SyndTaxShield is drawn on the
lines of the Union Government notification on Bank Term Deposit Scheme, 2006 for the
purpose of Sec 80C(2)(xxi) of the Income Tax Act.
• Eligibility – Individuals / HUF eligible to open an account with the Bank.
• Minimum Deposit – Rs. 100/- and multiples of thereof.
Maximum Deposit – Rs. 1,00,000/- per person per annum.
• Tenure – Minimum of 5 Years.
• Rate of Interest - 9% p.a.Senior Citizens & Staff will be eligible for additional
Rate of Interest as per applicable norms.
• Withdrawal Facility – No premature withdrawal facility available up to 5 years
from the date of deposit.
• Nomination Facility available.
• Deposits Account may be opened under Single / Joint holder type of Accounts.
• Interest may be paid in Lump sum at the time of maturity or
Every quarter or every month at discounted value as per rules.
• Interest Income from these term deposits shall be liable to tax under the IT Act.
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7. Syndicate Bank
3) Vikas Cash Certificate: - A Money Multiplier scheme - Vikas Cash Certificate is a
convenient and attractive reinvestment plan where interest earns interest every quarter to
provide a tidy sum on maturity. An ideal and fast growing scheme for those with big
future commitments in mind viz., children's education, daughter's marriage, house
purchase etc.
Salient features of the scheme are:
• Minimum deposit Rs.1000/- and thereafter in multiples of Rs.100/-
• Period of deposit ranges from 6 months to 10 years in completed quarters.
• Interest compounded every quarter.
• Senior Citizens (above 60 years of age) are eligible for an additional interest of
0.5%.
• Premature withdrawal of the deposit is permitted any time on payment of the
prescribed penalty.
• Loans up to a maximum of 95% of the balance available depending on the length
of the unexpired period of the deposit.
4) Syndicate Suvidha Deposit: - A Fixed Deposit with partial withdrawal facility - A
flexible and convenient scheme whereby a deposit is made for a fixed period from which
amounts can be withdrawn as and when needed. It is ideally designed for those who
desire the high interest on their fixed deposit with the operational convenience of
withdrawals in times of need.
Salient features of the scheme are:
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8. Syndicate Bank
• Deposit accepted for periods ranging from 15 days to 120 months.
• Deposit accepted in multiples of Rs.1000/- with a minimum of Rs.1000/-; Interest
is payable every quarter.
• Option is available to withdraw a portion of the deposit in multiples of Rs.1000/-
whenever needed. No penalty is payable on such partial withdrawals.
• Senior Citizens (above 60 years of age) are eligible for an additional interest of
0.5%.
• Nomination facility available.
• The rates of interest are as fixed by the Bank from time to time.
5) Social Security Deposit: - An ideal monthly income plan - Nothing provides greater
comfort and peace of mind than a guaranteed, regular income. This is particularly true of
the aged and the pensioners who desire a monthly income through periodical investment
of their accumulated savings. This periodical income can be utilized in several ways like
gifting a part to near and dear ones, donating to noble causes etc.Our Social Security
Deposit is ideally designed to meet such needs. All you need to do is to invest a lump
sum amount for a fixed period that provides regular monthly interest for meeting various
commitments during the period of the deposit.
Salient features of the scheme are:
• Minimum amount of deposit is Rs.1000/-.Deposits accepted from 1 year to 10
years in completed quarters.
• Option to earn interest either at discounted rates at the end of every calendar
month or on quarterly basis during the period of the deposit.
• Loan available up to 95% of the deposit amount depending on the length of the
unexpired period of the deposit.
• Senior Citizens are eligible for an additional interest of 0.5%. Nomination facility
available.
• Rate of interest are as fixed by the Bank from time to time.
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6) Senior Citizens' Security Deposit: - A highly beneficial value added scheme,
specifically designed for the benefit of our respected Senior Citizens (above 60 years of
age), this deposit scheme is truly special in character, carrying an interest of 0.5% over
and above the normal rate besides offering numerous value additions.
Salient features of the scheme are:
• Minimum amount of deposit is Rs.1000/-
• Period of Deposits is 12 to 120 months.
• Interest on the deposit is 0.5% above the normal rate.
• Interest payable at monthly (discounted rates) or quarterly intervals.
• Premature withdrawal of deposit is permitted any time without levy of penalty.
Accounts closed before completion of 12 months are not eligible for additional
interest of 0.5%.
• Exemption from maintaining prescribed minimum balance in savings Bank
account.
• Free Remittance Facility to any of our branches up to a specified limit
7) Quick Money Deposit: - A fixed deposit with overdraft facility. Convenience at its
best could well be the name of this scheme. A one time fixed deposit of Rs.25, 000/- or
more for a specified period automatically entitles you to an overdraft limit of 80% of the
deposits. While you fixed deposit remains untouched and merrily earns compound
interest, you enjoy the convenience of day-to-day operations in the overdraft account.
Salient features of the scheme are:
• Deposit amount is Rs.25,000/- or more in multiples of Rs.1,000/-Period of
deposits is 1 to 5 years.
• Overdraft facility up to 80% of the deposit is arranged on the date of deposit itself
along with chequebook facility.
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10. Syndicate Bank
• Overdraft Account (extended at specified interest rates) can be operated like a
regular account.
• Premature withdrawal of the deposit permitted subject to certain terms and
conditions.
8) Pigmy 1928 Deposit: - Little drops of water make a mighty ocean - This deposit
scheme suits the needs of everyone viz. businessmen, professionals, wage earners,
teachers, salaried personnel, traders, housewives etc. You can save money with the Bank
regularly depending on your convenience. And you need not visit the Bank for doing so.
The Bank's authorized Agent collects your savings at your doorsteps at regular intervals.
And your money silently grows over 63 months into a lumpsum for meeting your future
commitments e.g. daughter's marriage, children's education, family functions, house
purchase etc.
Salient features of the scheme are:
• Period of the scheme is 63 months.
• Amount as low as Re.1/- per day can be saved daily / weekly / monthly.
• No penalty even if depositor is unable to pay installments regularly.
• Deposit account can be closed prematurely subject to certain conditions.
• Loans up to a maximum of 75% of the balance in the Pigmy account available.
• No tax will be deducted for the interest on the deposit.
9) New Pigmy Deposit Scheme – Pigmy + 2006: - Save money at your convenience. A
new deposit scheme comparable to the Bank’s Pigmy (1928) Deposit Scheme, but with
added features for increased customer compatibility is being launched from 02.10.2006.
The Bank’s Authorized agent will collect your savings at your doorsteps at daily or less
frequent intervals in tune with your convenience. Any day after 12 months of opening
the Deposit, the amount equal to or exceeding Rs. 5000/- in the Deposit Account, can be
transferred to a term deposit account at the ruling interest rate subject to the terms of the
Scheme, listed below:
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11. Syndicate Bank
1. Minimum Contribution per occasion: Rs.5/-
2. Period of Deposit: 72 months
3. Premature refund: i) Before 24 months: Permitted with penalty and
without interest.
ii) 24 months & above: Interest on deposit will be paid at rates
Which the deposit has remained with Bank.
4. Loan /Overdraft: Loan/OD available up to 75 % of the outstanding
Balance.
5. Nomination facility: Available
6. Tax Deduction
at source: No tax will be deducted on the interest earned on the
Pigmy +2006 deposit (Before conversion)
II) LOANS
a) Personal loans
1) Synd Shakti: - Artisan friendly scheme for extending need based credit for purchase
of power tools and need-based working capital to the artisans, enabling them to upgrade
the level of technology and improve their work efficiency.
The following category of Self-employed persons in the operational area of the branches
are eligible for facility under the scheme:
• Engaged in the field of carpentry & wood works.
• Servicing & repair of automobiles.
• Servicing & repair of electrical equipment.
• Sanitary & plumbing works.
Nature and quantum of loan: -
Financial assistance may be either only term loan or both term loan along with need
based working capital with a maximum ceiling of Rs. 1.00 lakh per borrower. Wherever
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12. Syndicate Bank
composite loan is considered under the scheme, the facility shall be arranged in two
components.
Rate of interest: PLR (13.00% at present).
Security: -
• For loans upto Rs. 25000: Hypothecation of Power Tool Kits to be purchased.
• For loans above Rs. 25000: Hypothecation of Power Toll Kits and credit worthy
third party guarantee.
Margin: -
• For loans upto Rs. 25000: No margin.
• For loans above Rs. 25000: 5 to 10% margin.
Repayment: -
• Term loan component: Repayable in 5 years in equated monthly installments with
a repayment holiday of 3 months.
• Working capital component in the form of overdraft: Limit is valid for three years
subject to renewal every year.
2) Synd saral: -
Purpose: To meet urgent personal credit requirements
Eligibility: Permanent employees of Central / State Government Offices / Undertakings /
reputed companies / firms / educational institutions. Non-salaried class like Doctors /
Engineers / Lawyers / Chartered Accountants / Architects / Consultants and Pensioners
Quantum for Clean loan :
Salaried Class: 12 months gross salary with salary credit and maximum Rs.3 lakhs with
letter of undertaking from the employer
Pensioners:
• Aged < 65 yrs: 10 months’ gross pension with a maximum of Rs. 2 lacs.
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13. Syndicate Bank
• Aged 65-70 yrs: 6 months gross pension with a maximum of Rs. 1 lac.
• Aged > 70 yrs: 5 months gross pension-max. Rs.50000/-
Non-salaried Class : 50% of gross annual income as per Income Tax Assessment Order
(ITAO) (100% of average gross annual income, as per ITAOs of immediate preceding 3
years) or 60% of value of immovable property to be mortgaged to the Bank (subject to
maximum amount of Rs. 5 lacs)
Quantum for Secured Loan : 80% of purchase price of NSC / IVP / KVP if completed 24
months from date of purchase and 65% of purchase price if completed 13-23 months);
80% of surrender value of LIC policy / purchase price of RBI Relief Bonds / other
Government securities.
Repayment: Maximum 60 months in case of loans and overdraft against Govt. securities.
to be renewed once in 2 years
Rate of interest w.e.f. 01.04.2004:
• For Clean Loans: 13.50%; For Clean Overdrafts: 14.00%.
• For Secured Loans: 12.50%; For Secured Overdrafts: -NA-
Synd Saral, fully secured by approved securities (IVP, NSC, KVP, LIC policies, RBI
Relief Bonds etc) with suitable margin, interest to be charged at 11.00%
Requirements:
• Salary Certificate / letter of undertaking from the employer.
• ITAO for non-salaried class / property documents where ITAO is not available.
• Third party guarantee acceptable to the bank.
• Valid mortgage of immovable property/ pledge of securities.
• Post dated cheques in exceptional cases.
3) SyndSenior: - An exclusive personal loan scheme for pensioners
Purpose: Any bonafide personal / business credit requirement
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14. Syndicate Bank
Eligibility:
Pensioners in receipt of regular monthly pension from Central / State Governments /
Public Sector Units / Defence Establishments and other government or quasi government
institutions whose pensions are being routed through accounts held with our Bank
Quantum
Details of the quantum of loan that can be sanctioned based upon age profile of the
borrower are as follows:
Age Range
Basis of Arriving at
Quantum
Maximum permissible
loan Amount (Rs. Lac)
60 – 65 years
18 times the gross monthly
pension being routed
through our Bank
3.00
65 – 70 years
18 times the gross monthly
pension being routed
through our Bank
1.50
Over 70 years
5 months gross pension
being routed through our
Bank
0.50
Security: Unsecured
Nature of facility and documentation : Demand Loan (Clean).
Rate of Interest: PLR – 1%
Surety
i) Surety need not be insisted for loans upto 6 months gross monthly pension or
Rs.50000/- whichever is lower
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ii) In all other cases the surety of a family member or that of a third party shall be
obtained. The surety should have adequate means / income.
Repayment: In EMIs not exceeding 72 months
Cutback norms: 50% of income from verifiable sources
4) Synd vahan: -
Purpose : To buy new / second hand 4-wheeler or new 2-wheeler
Eligibility : Persons having minimum annual income of Rs. 1 lakh for 4 wheeler and
Rs.50000/- for 2 wheeler.
Quantum: 4-wheeler (New): 95% of on-Road price (inclusive of insurance, Road Tax and
Registration Charges) plus accessories (max. 10000/-) or 3 times gross annual income,
whichever is less, for new 4 wheelers. 4-wheeler (Old): 70% of value of the Car or 3
times gross annual income or Rs. 3.00 lacs, whichever is less.
Note: Income of spouse/ major children will also be considered for purpose of
determining eligibility and quantum of loan.
New 2-wheeler: 95% of on-Road price (inclusive of insurance, Road Tax and
Registration Charges) of the new two wheeler and accessories (max. Rs.500/-) or 12
months gross salary, whichever is less, subject to a maximum of Rs.60000/- for all
category of new two wheelers.
Repayment: 72 / 48 months for new/old 4 wheelers and 60 months for new 2 wheelers.
Rate of interest:
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The revised rates as above are applicable for all fresh loans disbursed on or after
01.04.2004.
Requirements:
• Salary Certificate or
• ITAO for non-salaried class/property documents where ITAO is not available.
• Proforma invoice.
5) Synd Vyapar: -
Purpose : To meet the credit needs of traders
Quantum : Maximum Rs. 25 lacs in the form of overdraft
Repayment : To be renewed once in 2 years
Rate of interest w.e.f. 01.04.2004 : Upto Rs.2 lakhs : 11.00%; Above 2 lakhs: Depending
on credit rating of the borrower, i.e. CR-01 - 11.00%, CR-02 - 12.00%, CR-03 - 12.50%,
CR-04 - 13.00%, CR-05 - 13.50%, CR-06 - 14.00%.
Security : Mortgage of property / Pledge of NSC / KVP / LIC / RBI Relief bond and
hypothecation of stock in trade
Margin : 40% on immovable property, 15% on other securities
Requirements : Financial statements for limits of over Rs. 10 lakhs.
Sr. no Quantum of Finance
Rate of Interest
(%p.a compounded monthly)
1 Loans up to Rs 2.50 lacs 9.00%
2 Loans above Rs 2.50 lacs 10.00%
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17. Syndicate Bank
6) SyndSwarna: - A facility of Term Loan or Overdraft against the security of GOLD
ORNAMENTS.
Purpose:
Term loans / Overdraft limit can be granted for all purposes coming
under both Priority and non-priority sectors.
Eligibility:
• Bonafide Individuals pursuing such activity like retail trade, small business,
professionals, self-employed, agriculturist and having any other source of income
who are properly introduced to the bank and only through branches having the
services of approved jewel appraisers.
Nature of Facility
• Term Loan / Secured Overdraft.
Quantum of Loan / Limit
Where the jewel loan / overdraft is
required for period not exceeding 12
months
Rs. 650/- per gram for agriculture / business purpose &
Rs.625/- per gram for all other purpose of 22 carat gold
or 75% (80%for hallmarked jewellery) of the market
value of jewels, whichever is lower.
Where the jewel loan is required for
period exceeding 12 months and
upto 24 months
Rs.600/-per gram for agriculture / business purpose &
Rs.575/- per gram for all other purpose of 22 carat gold
or 65% (70%for hallmarked jewellery) of the market
value of jewels, whichever is lower.
The Income generation capacity of the applicant will also be taken into account before
sanctioning.
Incase of Secured OverDraft facility the maximum limit is restricted upto Rs.10 Lac
Concessional terms for Jewel Loans / overdraft against HALLMARKED JEWELLERY:
Concession is given for jewel loans / OD in case of Hall marked jewellery by way of 5%
relaxation in margin and 0.25% concession in rate of interest across the board.
Repayment:
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• In Case of of Term Loan
Maximum 12 to 24 monthly installments along with interest. However, in case of
agriculturists, half yearly/yearly instalment can also be stipulated depending on
income generation & seasonality.
• In case of Secured Overdraft the facility to be renewed / reviewed every year
Jewel Appraiser Fees
• 50 Ps per Rs.100/- subject to a minimum of Rs.2/-.
Processing Charges Nominal Processing Charges will be collected at the time of sanction.
7) Synd pigmy: -
Purpose : To meet any contingent requirement of pigmy depositors.
Eligibility : Pigmy depositors with regular contribution for 24 months.
Quantum : 3 times pigmy deposit balance with maximum Rs. 50000/-.
Repayment : 35 months for loans and overdrafts renewable on yearly basis.
Rate of interest w.e.f. 01.04.2004 : 12.00% p.a. (fixed)
Security : Pigmy deposit
Margin : - Requirements :Third party guarantee for the amount beyond pigmy balance.
Contributions to Pigmy Deposit should be continued.
8) Synd Kisan: -
Purpose : To meet urgent personal needs / purchase consumer durables like TV, Fridge,
Washing Machine, Audio / Video Equipment etc.
Eligibility : Agriculturists
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Quantum : 50% of average gross annual income or Rs. 1 lakh which ever is less for clean
loans. 80% of the consumer durable or 50% of annual income or 0.50 lakh whichever is
less.
Repayment : Not exceeding 3 years
Rate of Interest w.e.f. 01.04.2004 : 14.00% for clean loans and 13.00% for secured loans.
Requirements : Proof of income and Third party guarantee acceptable to the Bank.
9) Synd Nivas: -Housing Loan Scheme
Purpose
• For construction/acquisition of a house/flat or for acquiring a site and building a
house thereon not more than 25 years old.
• For making extensions/additions to existing house. For NRIs, loan available for
acquisition of house for self-occupation on return to India.
• For acquisition of furniture/fixtures including air conditioners, geysers, fridge,
cots, tables, sofas etc which form part of improvements to the home purchased or
constructed out of the Housing Loan.
Eligibility
• Self-employed/business class having gainful employment in a profession or
business for a period of minimum period of 5 years.
• Individuals not owning a house/flat at the place of work / business / profession
having sufficient and regular income.
• NRIs holding Indian passport with adequate repayment capacity.
• Applicant should be a major and not more than 55 years of age.
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Quantum
For Salaried persons : Maximum of 72 months gross salary.
For Others : Maximum of 6 times average annual income based on Income Tax
Assessment Order/IT returns for the past 3 years.
Security
• First mortgage of the site/house/flat to be constructed/acquired or as advised by
the Legal Adviser/Law Officer of the Bank.
• Hypothecation of furniture & fixtures.
Processing Charges
• Rs.500/- per lac with a minimum of Rs.1000/- at present. (Processing charges are
subject to change from time to time)
Repayment: For acquiring a house
• Equated monthly instalments with maximum repayment period of 25 years
including repayment holiday of 18 months where eligible.
• In case of salaried persons, repayment period shall not extend beyond
superannuation and for others beyond 65 years of age.
For repairs/renovation – Maximum repayment period is 5 to 7 years.
Rates of Interest
Repayment Period
(Including Repayment Holiday)
Fixed Rate Housing
Loans (%) for HLs
Sanctioned after
01.05.07
Floating Rates
Housing Loans (%)
BPLR is 13.00%
w.e.f. 11.04.07
Upto 5 Years 11.50 BPLR - 3.00%
Over 5 years & upto 10 years 12.00 BPLR - 2.50%
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Over 10 years & upto 20 years Category abolished BPLR - 2.25%
Over 20 years & upto 25 years Category abolished BPLR - 2.00%
Other terms and conditions:
• Interest rates are to be compounded monthly.
• Fresh Fixed Rate Housing Loans should be repaid within a period of 10 years
Sure ty
A good third party security acceptable to the Bank. The following important documents
are to be submitted along with the application
• Proof of income.
• Original title deeds of the property with Encumbrance Certificate and agreement
for sale.
• Permission for construction with approved plan issued by Competent Authority.
• Estimation of construction cost, valuation report in case of purchase of ready built
house/flat.
10) SyndVidya: - A Syndicate Bank’s Education Loan Scheme, SyndicateBank’s
involvement in education dates back to the decades prior to the Nationalisation of Banks.
The Bank was also the first to set up a string of Rural Training Institutes aimed at
empowering the young India in rural areas through entrepreneurial education and
training.
Continuing this commitment to education, the Bank has introduced a comprehensive
Education Loan Scheme – SyndVidya, which is more student responsive and parent
friendly. The Scheme covers the entire spectrum of educational needs from the school
education to super speciality courses including overseas courses. The scheme makes
available need based finance to cover expenses related to education such as fees payable
to College, Hostel, Examination, Library, Laboratory fees, Cost of Books, Equipments,
Travel expenses for studies abroad etc. The loan scheme carries liberal limits of Rs.7.5
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Lac for courses within the country and Rs.15 Lac for oversea courses. The scheme which
is attractively priced at the Bank’s prime lending rate and other details are furnished
below:
Eligibility Criteria
• Any student who is a major representing himself or a minor student represented
by parent or guardian of Indian nationality.
• Must have secured admission on the basis of merit to professional/ technical/other
courses through entrance test/selection process.
• Must have secured admission to foreign university/institution (for studies abroad).
Courses Eligible
a) Studies in India.
• School education including plus 2 stage.
• Graduation: B.A., B.Com, B.Sc., etc.
• Post graduation: Masters & Ph.d.
• Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental
Management, Computer etc. in respect of Management studies, apart from
university affiliation course should also be approved by All India Council for
Technical Education. For Computer education, the recognised training institute
should have accreditation of DOE, Govt of India to conduct the course under
Department of Electronics.
• Computer certificate courses of reputed institutes accredited to Department of
Electronics or Institutes affiliated to Universities.
• Courses like ICWA, CA, CFA etc.
• Courses conducted by IIM, IIT, IISc, XLRI, NIFT etc.
• Courses offered in India by reputed foreign universities.
• Evening courses of approved institutes.
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• Other courses leading to diploma / degree etc. conducted by colleges / universities
approved by UGC / Govt. AICTE / AIBMS / ICMR etc.
• Courses offered by National Institutes and other reputed private institutions
acceptable to the Bank.
b) Studies Abroad.
• Graduation: For job oriented professional/technical courses offered by reputed
universities.
• Post Graduation: MCA, MBA, MS. Etc.
• Courses conducted by CIMA-London, CPA in USA etc.
• Foreign Diploma courses are not eligible.
Quantum of Loan
• Need based finance to meet expenses such as fee payable to college / school /
hostel, examination fee, cost of books, travel / passage fare for studies abroad etc.
• Capitation fee / donation / external coaching fee are not eligible for finance.
• Maximum of Rs.7.50 lac for studies in India and Rs.15 lac for studies abroad.
Security
• For loans up to Rs.4 lac - NIL.
• For loans above Rs.4 lac and up to Rs.7.50 lac - Collateral in the form of
satisfactory third party guarantee acceptable to the Bank.
• For loans above Rs.7.50 lac - Collateral security equal to 100% of the loan
amount with suitable margin and a third party guarantee acceptable to the Bank.
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NOTE: In all the above cases, the parent / guardian shall join the transaction as surety
• For loans up to Rs.7.50 lacs - 10.00 %.
• For loans above Rs.7.50 lacs - 9.50 %.
Repayment
• In 5 to 7 years commencing one year after completion of the course or 6 months
after securing the job whichever is earlier.
Capability Certificate
• Capability certificate for students going abroad for higher studies are also issued
on production of financial and other supporting documents
b) Agricultural loans
1) SyndJaiKisan: -
To simplify the system of credit delivery to the farmers, taking a holistic view on their
credit requirement covering entire gamut of expenditure related to investments on
Agriculture, Contingencies, Consumption and other pressing social obligations, the Bank
has introduced a hassle free farmer friendly credit scheme called “SyndJaiKisan”
Eligibility criteria:
• All existing farm loan customers from the operational area of the Bank, with
satisfactory past track record for a period of 2 years and owning irrigated lands
and cultivating at least two crops annually or cash crops or plantation crops.
Farmers cultivating single crop with assured irrigation are also eligible.
• Farmers engaged in Pisciculture and Scampiculture activity in the farm ponds
established on their own lands.
• Farmers engaged in diary, goatery, piggery and taking up the activity in a
scientific manner in the farms established on their own lands.
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• The farmer should have already mortgaged/ created charge on their lands in
favour of the Bank or willing to offer lands as security by way of mortgage /
charge creation to the Bank.
• Major portion of the investment should be directly related to farm development.
• For consumption and other pressing social obligation there is maximum ceiling of
30% of total limit to be sanctioned.
Quantum of loan:
The quantum of loan will be the least of the following:
• 50% of the value of the property offered as security (40% of the value of the
property in case of farmers engaged in Pisciculture & Scampiculture activity).
• Five times the annual income of the farmer from agriculture and allied activities.
• Total requirements of the farmer.
• Subject to a minimum of Rs. 25000 and maximum of Rs. 15.00 lakh.
Rate of interest (Liable to be changed):
Interest for loans under the scheme is as applicable to the agricultural loans:
Sl Quantum of Loan Rate of interest Present Rate
01 Rs. 50000 PLR minus 2.50% 12.25% -2.50% = 9.75%
02 Rs. 50001 to 2.00 Lac PLR minus 1.00% 12.25% - 1.00% = 11.25%
03
Above Rs. 2.00 Lac
(Linked to CR Code)
CR-3 PLR minus 0.50% 12.25% - 0.50% = 11.75%
CR-4 PLR 12.25%
Repayment:
To be repaid within a maximum period of 7 years based on expected time of harvesting/
marketing of farm produce. Repayment holiday up to 18 months based on the
requirements to be decided on case-to-case basis.
Security:
Mortgage/charge creation on agricultural lands having clear title
Other terms & conditions:
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• During the pendancy of an existing loan under the scheme, no fresh loans under
this scheme shall be sanctioned.
• All the existing liabilities shall be regular.
If the borrower is agreeable, he may be covered under Personal Accident Insurance
Scheme by collecting the required insurance premium
2) Jewel loan scheme: -
Bank provides jewel loans to agriculturists for their agricultural credit needs on easy
terms and at low cost:
• Lending at Rs. 650/- per gram on 22 carat gold or 75% of market value of the
jewel (80% for Hall Marked jewels) whichever is lower for jewel loans with a
repayment period upto 12 months.
• Lending at Rs. 600/- per gram on 22 carat gold or 65% of market value of the
jewel (70% for Hall Marked jewels) whichever is lower for jewel loans with a
repayment period exceeding 12 months and upto 24 months.
• Lowest interest rate at 7% per annum for loans upto Rs. 3.00 lac availed for crop
production purposes (Kharif 2006 & Rabi 2006-07) and at 8.5% (PLR-3.00) for
loans upto Rs. 50,000 for other agricultural purposes against pledge of jewels.
• Service charges exempted for loans upto Rs. 25,000.
• Loans issued on all working days.
3) Syndicate Farm House Scheme - Bring Home the Happiness: -
• The scheme is meant for farmers to enable them to have a decent dwelling house
which also takes care of other requirements such as cattle shed, drying yard, farm
implements shed.
• Credit support is extended up to a limit of Rs.10 lac for construction of farm
house. Loans for repair of damaged houses are also extended in rural and semi-
urban areas up to Rs.1.00 lac.
• Loan is available for purchasing ready built house and also construction of
additional farm house. Maximum repayment period is 20 years for new farm
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house and five years for repair of farm house and the repayment period is linked
with the cash flow.
No conversion of land is necessary and no income proof insisted
4) Development of Irrigation Infrastructure - For greater and sustained production
• Medium to long term loans with repayments up to 15 years.
• Construction of Open Wells, Borewells, Tubewells, Check dams, Irrigation Tanks
and Pump sheds.
• Repair of Existing Wells, Laying out Pipeline, Sprinkler and Drip Irrigation
system, Lift Irrigation projects.
• Repayable in convenient Quarterly/Half Yearly/Yearly installments.
• Loan amount is linked with approved project cost.
• Composite Developments can also be taken up.
5) Land Development Schemes - For increasing productivity
• Leveling of Land.
• Contour Bunding and Terracing.
• Land reclamation and to treat Acid and Alkaline soils.
• Surface and Subsurface Drainage System.
• Application of Fresh Soils to the Garden.
• Fencing including Electrical Fencing.
6) Syndicate 2/3/4 Wheelers Scheme - For convenient Farm Management
Financial assistance available for Purchase of 2/3/4 wheelers.
• Medium term loans are extended for purchasing, Two wheelers such as Scooter /
Motorcycle / Mopeds, Pickup vans, Luggage carriers, Cars, Jeeps and Vans
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7) Syndicate Kisan Credit Card (S.K.C.C) -
The objective of the new scheme is to meet the credit needs of the farmers for cultivation
of crops and other requirements in a very convenient manner. Farmers, belonging to
villages served by Syndicate Bank, who are not defaulters in respect of earlier loans and
who have crop loan requirement, are eligible to avail the facility.
The farmers having this facility can deposit money in the account when they realize their
income and withdraw it whenever needed. Farmers have to pay money into the account
after harvest season and have to operate the account regularly.
A hassle free production credit scheme for farmers
• Entire ranges of crop & production credit requirements are met.
• Provision for meeting maintenance expenses of small nature for Dairy, Poultry
and other Allied activities.
• Requirements of Non-farm activities and Small Consumption Expenses met up to
Rs.5,000/-.
• Simplified documentation and card valid for 3 years. Absolute flexibility in
operation of the limit.
• No restrictions on number of withdrawals and credits into the account.
• Minimum credit balance of over Rs.500/- between 10th and last day will earn
Savings Bank interest.
• Withdraw when necessary and Repay when Farm income is generated.
• Personal Accident risk insurance cover available
8) Solar Water Heater: -A Boon To Be Happy
Syndicate Bank can help you to have copious hot water. Powercuts and rising electricity
bills are past worries, You are free from such hassles.
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Syndicate Bank launches an Eco-friendly low interest loan scheme to solve your energy
crisis in collaboration with Ministry of Non-Conventional Energy Sources, Government
of India.
You can harvest abundant solar energy through Solar Water Heating System financed
under the scheme. Utilise the opportunity to install these system with loan of very low
interest rate at 5% p.a., from select Branches of Syndicate Bank and save substantially
your time, money and energy.
REVISED SCHEME FOR FINANCING SOLAR WATER HEATING SYSTEMS
With a view to promoting widespread use of solar water heaters, the above scheme has
been introduced incorporating the following features:
a. The revised scheme is being implemented in collaboration with Indian Renewable
Energy Development Agency Ltd. (IREDA), a Public Sector Company and the
corporate financing arm of the Ministry of Non-conventional Energy Sources.
b. Soft loans are now available at an interest rate of 2% p.a. to domestic users, 3%
p.a. to institutional users (Non-profit making and not claiming accelerated
depreciation) and 5% p.a. to industrial / commercial users on upfront basis.
c. The borrowers are eligible for loan up to 85% of the cost of the system repayable
over a period of 5 years.
d. Solar Water Heating Systems comprising of Flat Plate Collectors (FPC) or
Evacuated Tube Collectors (ETC) are eligible to be financed under the scheme
C) Other priority sector loans: -
Priority Sector Credit Department
1) Financing rural tourism: -
The Tourism Industry is one of the largest sources of employment with an estimated
employment potential for about 28 million persons directly or indirectly. Financing Rural
Tourism Scheme has been introduced with the following objectives:
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• To promote sustainable livelihood in rural areas by way of providing credit
support for construction of new structures for the purpose of accommodation of
tourists.
• Credit support for expansion and repair / renovation of existing accommodation.
• Credit and promotional support for creating additional employment opportunities
to other tourism related services in rural areas.
Activities covered under the above scheme.
• Bed & Breakfast facilities in local houses, havelis, houses of erstwhile Zamindars
and Royal families.
• Stay arrangements in log – houses and tree houses in orchards and agricultural
fields / farm houses.
• Stay arrangements in tents in orchards and beaches.
• Health–tourism– indigenous and herbal medicines, meditation, yogasanas etc.
• Handicraft tourism, Spice tourism, Agri tourism – production system, education
and entertainment activities.
• Local home made cuisine
• Local arts and crafts, handicrafts, outfits, festivals
• Local media/theatre, photographer, videography
• Local sight-seeing, wildlife safari, visit to bird sanctuary, national parks, cycle
safari, fishing safari, nature trails, trekking.
• Production systems for agri tourism such as orchards, dairy, fishery, herbal park,
spice gardens, crop cafeteria etc.
• Educational, extension and entertainment activities like use of non-conventional
energy, Indigenous Technical Knowledge (ITKs) Green houses, health
management, etc.
• Market outlets like shops, Malls etc.
• Any other activity promoting rural tourism.
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2) Synd Swarojgar Credit Card (SSCC) Scheme
The Bank has introduced Synd Swarojgar Credit Card (SSCC) Scheme for the benefit of
small borrowers. The SSCC takes care of investments and working capital requirements
of wide range of small borrowers especially in the non-farm and service sectors both in
rural and urban areas.
Limit: The maximum limit under SSCC is Rs.50,000 per borrower as composite loan.
Rate of Interest: At Prime Lending Rate of the Bank.
Margin: Nil for loans upto Rs.25000 and 15 to 25% for loans above Rs.25000.
Validity: The limit is valid for five years.
Insurance cover: The beneficiaries under the scheme are eligible for cover under Group
Insurance Scheme.
3) Syndicate General Credit Card Scheme (SGCC): -
Credit cards are now being extensively used by individuals to make purchases of goods &
services on credit and also for cash withdrawals. In rural areas, with limited Point-of-Sale
and limited ATM facilities, introduction of a similar product may not be feasible although
there has been a demand for such a product. Considering the demand for such credit
requirements from individuals in rural and semi-urban areas, the Bank is introducing this
hassle free Syndicate General Credit Card (SGCC) Scheme. Under the scheme, limit to
be provided under the scheme is up to Rs.25000 and there are no stipulations with regard
to the purpose, security, or end use. The details of the scheme are furnished below:
Eligibility:
• The applicants should be credit worthy customers of rural and semi-urban
branches of the bank and having definite source of income.
• The applicants should be permanent residents of the place and produce proof of
address such as copy of ration card, driving license, PAN No. etc.
• They should not be defaulters to any financial institution in the area and they
should hail from the service area of rural / semi-urban Branch.
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• They should not have availed loans under general purpose schemes of the Bank
such as Synd Saral and Synd Kisan or under Syndicate Kisan Credit Card /
Syndicate Kisan Samruddhi Credit Card / Synd Swarozgar Credit Card where
there is provision for consumption expenditure as well as for undertaking
productive economic activities.
• Women customers who are engaged in income generating activities having
identifiable source of income may be given special preference while
implementing this scheme.
Margin & Security:
No margin or security will be insisted. However, borrowers may be encouraged to open
Pigmy / CD accounts subject to availability of adequate income.
A creditworthy person shall join the transaction as surety when the limit exceeds
Rs.10000. In respect of women beneficiaries, there is no need to obtain surety.
Rate of interest: PLR i.e. 11% p.a. at present
Issue of credit card: Under the scheme, the beneficiaries will be issued credit card (in the
form of passbook) incorporating name, address, employment details if any, borrowing
limit, validity of the card etc. The borrower would be required to produce the card
whenever he operates the account. Withdrawal in the account will be through withdrawal
slips accompanied by SGCC passbook.
Validity of the limit:
The credit card will be valid for 3 years subject to annual review. Interest should be
serviced every month.
Review: The account will be reviewed at the end of one year to satisfy that the conduct of
the account is satisfactory with regard to regular servicing of interest and regularity of
other liabilities with the Bank, if any, and that the income derived by the borrower is
sufficient to service the debt. If these three conditions are complied, the account will be
allowed to be operated in the following year after obtaining balance confirmatories.
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III) RECOVERY CHANNELS: -
1) One Time Settlement Scheme for NPAs in Small Borrowal Accounts:-
In order to offer small borrowers an opportunity to settle their NPA accounts and become
eligible for fresh finance Reserve Bank of India has advised all Scheduled Commercial
Banks to provide a simplified mechanism for one time settlement of loans where the
principal amount is equal to or less than Rs.25,000/- and that have become doubtful and
loss assets as on 30.9.2005. Accordingly, Bank has framed an OTS Scheme keeping in
view of the guidelines communicated by RBI.
(i) Coverage of accounts:
a) All loan accounts with original advance/ sanctioned limits up to Rs. 25,000/-
which became doubtful and loss assets as on 30.9.2005.
b) All accounts, including Suit filed and Decreed Debts
c) Accounts in all sectors irrespective of the nature of the business /purpose.
d) Cases of fraud, malfeasance are not covered.
(ii) Settlement formula: The amount that should be recovered as settlement amount
under these guidelines would be arrived at on the basis of holistic approach taking in to
account the age of the loan, nature of security available, present financial position of the
borrower, recovery received so far in the account, final impact on P& L account etc.
However branches shall make efforts to recover maximum possible in these accounts.
(iii) Payment:
The amount of settlement arrived at as above, should normally be paid in one lumpsum
immediately i.e, within one month from the date of sanction. However, in deserving
cases, Branches may consider recovering the settlement amount in installments with a
down payment of at least 10% to be received at the time of settlement. The balance
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amount should be recovered within one year from the date of sanction of OTS along with
DPI.
(iv) Scheme Period The Scheme will be in operation up to 31.12.2006.
(v) Fresh Loans: The borrowers whose loans are closed under this scheme would be
eligible for fresh loans. The respective authorities to take decision on fresh loan as per
the delegated powers keeping in view the viability of the proposed activity, income
generation to meet the loan installments and interest, borrower’s experience in the line
etc.
Bank’s Rights under the provisions of SARFAESI Act:
“The Securitisation and Reconstruction of Financial Assets and Enforcement of Security
interest Act 2002”(54/2002) has been effective from 21.6.2002, the date on which the
first Ordinance was promulgated and has received the President’s assent on 17.12.2002.
The constitutional validity of this Act has been upheld by the Hon’ble Supreme Court of
India on 8.4.2004 in its judgement delivered in the case of M/s Mardia Chemicals Ltd Vs
Union of India.The Act enables the Banks to take possession of securities and sell them
without intervention of Courts and to exercise wide range of powers conferred on
them.Apart from powers to sell the assets, Banks can initiate any one or all of the
following steps.
i. Take possession of secured assets, including right to transfer by way of lease,
assignment or sale (Sec 13. 4. a).
ii. Take over Management of the assets of the borrower (Sec 13. 4. b).
iii. Appoint a Manager to manage the secured assets so taken over (Sec 13. 4. c).
iv. Demand by notice in writing from any person who has acquired any of the
secured assets from borrower and from whom any money is due or may
become due to the borrower to pay the secured creditor as is sufficient to
satisfy the debts ( Sec 13. 4. d).
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v. Proceed against borrower before an appropriate forum for balance money if
the realisation by sale is not adequate (Sec 13.10).
vi. Proceed against the Guarantor/borrower as the case may be, without prejudice
to above (Sec 13.11).
vii. Request the jurisdictional Chief Metropolitan Magistrate / District
Magistrate’s help for taking possession/custody of any secured assets (Sec
14).
All payments received after taking above steps will get a valid discharge.
2) Synd Adalat:
Synd Adalat is a process wherein the borrowers are given opportunity to settle their dues
under compromise. Such Adalats would be organized at General Manager’s Office /
Regional Office/cluster centres to enable the borrowers to participate in person and put
forth his views. The date and place finalized for organizing such Adalats would be made
known in advance. The Regional Manager or the Executives from Corporate Office
would chair these Adalats.In principle acceptance of the proposal would be considered
against the commitment by the borrower to settle the dues. Later, such proposals are
placed before the Competent Authority for obtaining final sanction. The proceedings of
the Adalat would be drawn to firm up the discussion and for taking further follow up
action.
3) Lok Adalats:
Lok Adalat is one of the fora which has been playing an important role in settlement of
disputes. The Legal Services Authorities Act ,1987 has paved way for administering
justice without resorting to courts. It is voluntary process and works on the principle that
both parties to the dispute are willing to sort out their dispute amicably. Through this
mechanism, disputes can be settled in a simpler, quicker and cost effective way. The
National Legal Services Authority constituted under the Legal Services Authority Act,
1987 is the Apex Agency for laying down principles and polices for making legal
services available under the Act.
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Lok Adalats are conducted by State Level, District Level and Taluk Level Legal Services
Authority in the respective states. The dates for conducting Lok Adalat will be informed
well in advance by the Authorities concerned to the Banks and advocates. The Bank will
identify cases and furnish list of cases to the Authorities, who would send notices to the
borrowers to appear before Lok Adalat. The Bank would hold intensive pre Lok Adalat
meets with the borrowers and educate them on the advantages of settling their dues
through Lok Adalat and encourage them to participate in the Lok Adalat.
Advantages of Lok Adalats
• Cases upto Rs. 20 lakhs can be referred to Lok Adalats in Civil Courts.
• The DRTs/DRATs are also permitted to hold exclusive Lok Adalats to settle the
cases filed before them.
• Every Award of Lok Adalat is deemed to be a decree of a civil court and no
appeal lie before any court against the award.
• Lok Adalats can hear both suit field (litigation) and non suit filed (Pre- litigation
Cases).
• Court fee paid by the Bank is refunded if settled through Lok Adalat
• Faster and inexpensive remedy with legal status.
4) RBI OTS Scheme to SME Accounts
Reserve Bank of India has formulated OTS Scheme to cover SME Accounts. The salient
features of the Scheme are as under.
(i) Coverage of accounts:
a) The guidelines will cover all NPAs in SME sector which have become doubtful or loss
as on 31.3.2004 with out standing balance of Rs.10 crore and below on the date on which
the account was classified as doubtful.
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b) The guidelines will also cover NPAs classified as sub standard as on 31.3.2004 which
have subsequently become doubtful or loss where the outstanding balance was Rs.10
crore and below on the date on which the account was classified as doubtful.
c)The guidelines will cover cases on which the action under SARFAESI Act 2002 has
been initiated and also cases pending before Courts/DRTs/BIFR subject to consent decree
being obtained from the Courts/DRTs/BIFR.
d)Cases of wilful default, fraud and malfeasance are not covered.
e)Last date for receipt of applications from borrowers will be as at the close of business
on 31.3.2006.The processing of the applications shall be completed by 30.6.2006.
(ii) Settlement Formula – Amount and cut off date:
a) NPAs classified as doubtful or loss as on 31.3.2004
The minimum amount that shall be recovered under OTS of NPAs classified as doubtful
or loss as on 31.3.2004 will be 100% of the outstanding balance in the account as on the
date on which the account was categorized as doubtful NPAs.
b) NPAs classified as substandard as on 31.3.2004 which became doubtful or loss
subsequently
The minimum amount that shall be recovered under OTS of NPAs classified as sub
standard as on 31.3.2004 which became doubtful or loss subsequently will be 100% of
the outstanding balance in the account as on the date on which the account was
categorized as doubtful NPAs plus interest at existing Prime Lending Rate from 1.4.2004
till the date of final payment.
(iii)Payment :
The amount of settlement arrived at in both the above cases, shall preferably be paid in
one lump sum. In cases where the borrowers are unable to pay the entire amount in one
lump sum at least 25% of the amount of settlement shall be paid upfront and the balance
amount of 75% shall be recovered in instalments with in a period of one year together
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with interest at the existing PLR from the date of settlement up to the date of final
settlement
IV) OTHER PRODUCTS: -
1) SyndInstant - (RTGS System for instant transfer of funds): -
Real Time Gross Settlement (RTGS) is a technology based initiative for improvement of
Payment & Settlement System linked to the funds management. RTGS is a gross
settlement in which both processing and final settlement of funds transfer instructions
take place continuously i.e. in real time and transfers are settled individually against the
present clearing system. RTGS settles payments on a transaction basis instead of on net
settlement basis adopted presently at clearing houses. The funds transfer through RTGS
is instant, final and irrevocable. It is a remittance solution to both corporate customers
and individual customers for transfer of funds from their accounts with us to other
customers of other bank branches, which are RTGS, enabled.
• The product is operative only in RTGS – enabled CBS branches. At present
available in 178 of our branches
• At present customer transaction of Rs.1.00 lakh and above are allowed under
RTGS. The Charges for RTGS fund transfer are as follows:
Rs. 1.00 per 1000/- (maximum of Rs.5000/-) *
No charges for RTGS (INWARD)
2) Electronic Funds Transfer(EFT) System: -
The Electronic Funds Transfer (EFT) System was introduced by the Reserve Bank of
India in 1995 for quick movement of funds between different Banks for the Bank
Customers. The scheme is available for transfer of funds across the Banks at 14 centres at
present where Reserve Bank of India manages the Clearing Houses namely Ahmedabad,
Bangalore, Bhubaneshwar ,Chandigarh ,Chennai, Guwahati, Hyderabad, Jaipur, Kanpur,
Kolkata, Mumbai ,Nagpur, New Delhi, and Thiruvananthapuram . The 15th centre to be
started soon is at Patna.
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The EFT system works on the principle of " NEXT DAY AVAILABILITY OF FUNDS"
i.e. the beneficiary gets the funds credited to his account on the very next day, within 24
hours. This is a big boon to customer service since under the paper - based cheque
payment system, a customer depositing an outstation cheque for collection receives credit
to his account after 1-2 weeks’ time, depending upon the destination.
It is hoped that the enhancement in the limit of amount of individual transactions under
the EFT Scheme would be beneficial for the banks' customers and will go a long way in
improving customer service in the banks.
Salient Features:
• Fast remittance facility – Credit is afforded within 24 hours.
• Any number of remittances per day is permitted.
• Amount is directly credited to beneficiary account.
• Scope for frauds involving processing of paper instruments is absent.
• Built in security
3) Syndicate Gift Cheques: -
• Ideal Gift suitable for any occasion like birthday , naming ceremony, thread
ceremony, marriage, marriage -anniversary, Deepavali, Christmas etc.
• Gift cheques are issued at par, i.e., without collecting any charges whatsoever.
• Available in denominations of Rs 51,Rs 101 and Rs 501.
• Issued at over 786 branches all over India and encashable at par at any Branches /
Extension Counters all over India, i.e., in about 2000 outlets of the Bank
OTHER SERVICES:-
1) Insurance : -
Manipal headquartered SyndicateBank has launched Life Insurance Distribution in tie up
with Bajaj Allianz. This strategic decision to sell Life Insurance Products is taken to
enhance Customer satisfaction.
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SyndicateBank and Bajaj are trusted names in Indian Financial scene and Auto Sectors.
Customer delight and satisfaction is common ethos of these two institutions.
Launch of Insurance distribution is a part of Bank's strategy to emerge as a One Stop
Financial Shop to its multitude of customers by offering a range of Savings, Loan, Life
Cover, Income Cover, Risk Cover, Long Term Investment with or without risk cover and
also Payment Products. All these add to Customer Convenience and Satisfaction.
Insurance Business is a seamless add to Commercial Banking Business and Total
Synergy more particularly of service between these two Businesses. This is a huge
opportunity for SyndicateBank, which would translate benefits to its customers. This tie
up makes it easy for Customers to buy Insurance Products.
The Products were launched from 11 branches initially and now are marketed by all
branches of the Bank.
The following Products are now marketed:
SR.no Products Features
1 INVESTGAIN
Saving cum protection plan, which gives a
lump sum at the end of policy term. Plan
offers high protection going up to 2 times
the basic Sum Assured. A host of additional
benefits for best value of life
2 CASHGAIN
A unique participating Money Back Plan
that offers quadruple protection. A cash
payout is made every 1/5th of term ensuring
receipt of money more frequently. A host of
additional benefits to provide extra
protection.
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3 CHILDGAIN
A participating Endowment Plan to suit
children's needs - be it education, marriage,
etc. Payment of premium limited till age 18
of the child. Attractive family income
benefit to sustain the family.
4 RISKCARE
Pure Term Insurance Plan providing
protection of life at very economical rates.
5 TERMCARE
A term Insurance Plan which covers risk of
life with a provision of return of premiums
paid at maturity.
6 LIFETIMECARE
A whole of life plan with minimum
guarantee on death or on survival at age 80
whichever is earlier. Ideal for young people
to build a savings habit.
7 SWARNA-VISHRANTI
A participating retirement capital building
pension plan with life care for enjoying life
after retirement.
8 UNITGAIN
An investment plan with regular and single
premium investment linked life insurance.
Major part of premium invested in units to
reap maximum returns.
9 LOAN PROTECTOR
A mortgage term insurance plan that covers
the outstanding liability of the housing loan.
10 SYND DRIVER
A Group Insurance Plan for Drivers and
Assistants of Heavy and Light Commercial
Vehicles
11 SYND PROTECTOR A Group Insurance Plan that covers the
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42. Syndicate Bank
PLAN
outstanding liabilities of any type of loan
less than Rs. 2 Lakhs
All Plans / Products offer following additional benefits:
A) Accidental death
B) Total / Partial Disability
C) Critical Illness
D) Hospital Cash
E) Waiver of premium
F) Family Income benefits
ISSUE AGE: Issue age of the policyholder is calculated as age attained (i.e. last
birthday). Age at entry vary from 0 to 65 years depending upon the packages.
PREMIUM AMOUNT: Premium payment is calculated depending on the age of the
policyholder, term of the policy, frequency of premium payment term etc. The basic
premium for a female policyholder is equivalent premium for a two-year younger male
policyholder for the base policy only.
Premium discount is available for all policies @ Rs.84/- to Rs. 96/- per Rs.10000/-where
the Sum Assured exceed Rs.50000/-
BONUS: Compound Reversionary Bonus is payable including terminal bonus on
maturity.
TAX IMPLICATIONS: Premiums paid are eligible for tax deduction under Section 80C
of the Income Tax Act. Maturity & death benefit will be tax free under Section 10(10) D.
SOURCING APPLICATIONS: All branches of the Bank.
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43. Syndicate Bank
2) Syndicate bank ltd BPO: -The Bank has floated a BPO company named
"SyndBank Services Limited (BPO)" as a wholly owned subsidiary of SyndicateBank.
This initiative of the Bank heralds a new beginning in the Indian Banking industry by
carving out the first BPO outfit of a Nationalized Bank. This BPO Company is proposed
to undertake the following activities.
• Facilitating customers to file their Income Tax Returns
• Undertaking Back Office functions relating to Bank's Debit / Credit Card /
Bancassurance Business, Managing BCTT and Service Tax collection and Bonds
Issue.
• Undertaking Credit Rating of Bank's borrowers and managing Back Office
functions relating to Government Business Transactions and Interest / Dividend
Warrants issuance/ payments.
• Followup 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.
• Pre-shipment hardware testing for the newly procured computer Hardware items
like PCs, Servers, ATMs, UPS, Routers, Switches, Modems and other peripherals
such as printers, (all types), scanners, digital cameras, etc., for all Commercial
Banksand other Financial Institutions.
• Providing guidance and maintenance of records for PF, Pension and Gratuity
Trusts
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44. Syndicate Bank
Customer care
To enable the customers to voice their grievances or to offer some suggestions for
improvement in customer service, "Customer Day" is observed at all the offices of the
Bank across the organisation covering branches, Regional Offices, Corporate Office
on the 15th of every month (next day, if 15th is a holiday or half-day).During 3.00
p.m. to 5.00 p.m. on this day, any customer can meet Senior/Top executives of the
Bank including Chairman & Managing Director without prior appointment.
Complaint Redressal: -
(A) In case of any complaint, the matter shall be first brought to the notice of the
concerned Branch Manager for immediate redressal.
(B) If the complaint is not redressed to the satisfaction of the customer, the matter may be
taken up with the Regional Manager concerned (who are the Nodal Officers for
complaints at our Regional Offices) at their contact address.
44

45. Syndicate Bank
(C) If the complainant is still not satisfied with the responses received, he can address his
complaint to the Bank's Controlling Authority/Nodal Officer at Corporate Office
Bangalore at the address given below giving full details of the case.
(D) After exhausting all the above machinery/channels, if the customer is not fully
satisfied, he can write to the Chairman & Managing Director of theBank.
(E) If the complainant feels that his grievance still remains unredressed, he may write to:
• Directorate of Public Grievances, Govt. of India, Cabinet Secretariat, Sansad
Marg, New Delhi.
• The Banking Ombudsman located in selected centres in the country under RBI
Ombudsman Scheme, 2006.
• The District Consumer Forum under Consumer Protection Act, 1986.
Anonymous complaints will not be entertained.In case a complaint is false / frivolous,
the Bank is at liberty to take appropriate action against the complainants.
Awards Won By The Bank Over The Years
1972 INDIAN MERCHANTS' CHAMBER AWARD for outstanding contributions
towards welfare of community
1974 INDIAN MERCHANTS CHAMBER AWARD for outstanding contribution in
promotion of savings
1975 FICCI AWARD For outstanding achievements in agriculture
1975 LAGHU UDYOG SAHAKARI AWARD by the national alliance of young
entrepreneurs for bank's significant contributions to the development of small scale
industries and assistance to the young entrepreneurs through self employment
clinics
1975 INTERNATIONAL AWARD by JAYCEE INTERNATIONAL for self
employment
1975 FICCI AWARD in recognition of corporate initiative in industrial relations
45

46. Syndicate Bank
1975 CERTIFICATE OF MERIT for Bank's house journal "GIANT"
1976 INTERNATIONAL AWARD by JAYCEE international for outstanding
contribution to the cause of the JAYCEE movement
1977 ASSOCHAM AWARD for promotion of rural and agricultural activities of
Syndicate Agriculture Foundation sponsored by the bank
1978 INDIAN MERCHANTS CHAMBER AWARD for outstanding contribution
towards welfare of the community
1978 NATIONAL TROPHY For outstanding export performance
1981 NATIONAL INVESTMENT AND FINANCE AWARD for Priority Sector
lending.
1990 CHAUDHARI CHARAN SINGH MEMORIAL NATIONAL AWARD for Rural
Development
1999 FICCI AWARD for institutional initiative in the field of "Rural Development" to
RUDSETI jointly sponsored by Syndicate Bank
2001 Banking Technology Award for innovative use of Banking Applications on
INFINET awarded by IDRBT, Hyderabad
2003 Banking Technology Award conferred on Syndicate Bank by IDRBT, Hyderabad
for 2003
2006 Institute for Development and Research in Banking Technology (IDRBT),
established by Reserve Bank of India has conferred Syndicate Bank, “ Special
Award for Use of IT for Customer Service in Semi-Urban and Rural Areas”. The
award was given to Shri C P Swarnkar, Chairman & Managing Director, Syndicate
Bank by Dr Y.V. Reddy, Hon’ble Governor, Reserve Bank of India on Sept. 02,
2006 at Hyderabad.
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47. Syndicate Bank
OUR MISSION
The Mission articulated for each of the functional area of the Bank is highlighted below:
Resources: To achieve global deposits of Rs. 76 thousand crore by March 2007 with
emphasis on low cost resources by planned strategic initiatives including branch
expansion, aggressive marketing and active involvement of each and every employee of
the Bank.
Advances: To build a qualitative asset base of around Rs. 51 thousand crore by March
2007 to augment the income portfolio of the Bank.
Business: To achieve global business of Rs. 127 thousand crore by March 2007 and attain
Rs. 240 thousand crore by 2010.
Profitability: To make every branch a profit centre to earn a net profit of minimum Rs.
One thousand crore by March 2007 and ensure best possible returns to the stake holder’s
value.
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48. Syndicate Bank
Management of Assets: To focus on improving the quality of asset portfolio by avoiding
slippage of assets to NPA and to strive to upgrade the existing non-performing assets to
performing assets, bringing down gross NPA level below 2% and Net NPA below 1%
Human Resources & Organization structure: To mould and strengthen the organizational
structure to meet the future Business requirements and challenges. 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 Management: To fine-tune our marketing strategies to meet the
ever-growing market demands, to ensure that our products and services adapt to the
changing needs and expectations of the customer, to provide the customer the ideal
banking ambience, to reorient our publicity so as to provide increasing visibility to our
Brand, to get our branches / offices ISO 9000 compliant.
Risk Management: To continuously upgrade the Risk Management systems & processes,
imbibe risk management in business activities and implement Basel II requirements for
the benefit of all stakeholders.
Information Technology: To bring minimum of 80% of the Bank’s business under
Centralized Core Banking network by March 2007 spanning minimum of 1500 branches
across the country, supplemented by additional delivery channels with 800 ATMs,
backed by a comprehensive fail safe Business Continuity Plan.
Forex and Treasury: To profitably manage the forex and investment assets of the Bank to
achieve a dealing room turnover of Rs.535 thousand crore by March 2007 and a net profit
exceeding Rs.105 crore.
Para Banking: To achieve insurance premium collection of nearly Rs.180 crore with a
commission income of Rs.20 crore, a credit card base of 1 lakh that brings in net earnings
48

49. Syndicate Bank
of a minimum of Rs.3.50 crore and a debit card base of 15 lakh fetching a net revenue of
Rs.25 crore.
Inspection: To migrate progressively from the present transaction oriented inspection
system to a risk based audit exercise enhancing the effectiveness of risk management,
control and governance processes.
Perpetual fusion of Vision and Mission will be our Passion
SURVEY REPORT.
1. Are you satisfied with the Services provided by Syndicate
Nationalised Bank?
43%
57%
YES
NO
49

50. Syndicate Bank
2. Do you know Syndicate Bank was the first bank to give
employment to women as well as to start Core Banking in India?
26%
74%
YES
NO
3. Does Syndicate Bank needs Advertisement strategy in order to
attract more customers’ attention?
81%
19%
YES
NO
50

51. Syndicate Bank
4. Are your complaints been solved quickly as compared to other
private sector banks?
72
%
28
%
YES
NO
Analysis : -
According to survey carried out for Syndicate Bank, it can be noticed that Bank
does not provide as quick service as required, Even Syndicate Bank is rarely known
to us as they do not publicist there Banking networks which can be a draw back for
them. It should be taken into notice that Syndicate Bank needs more marketing
skills for there product to bring into notice in order to compete in market with
regards to other banks, even if the annual profit earned is large it is seen that people
are still not aware of this bank. Syndicate bank being a south base bank has less
network in northern India and other parts of country, this can be one of the reason
that why people are not aware of this bank. In order to come over this reason more
branches should be placed in different parts of country along with ATM’s center.
Places such as Railway station, Bus stops, Commercial areas, Shopping malls,
market places, Airports etc, ATMs should be placed in order to meet customers
requirements. Huge publicity by way of Advertisements on T.V, Hoardings,
Banners, etc should be taken place.
51

52. Syndicate Bank
Conclusion: -
SyndicateBank with about 2000 outlets for customer-interface spread across the
country strives to guarantee highest level of satisfaction to the customer who is the
very purpose and make each interaction/transaction with it for the public a
pleasurable experience. Utmost care is being taken to weave innovative features to
meet the convenience, desires and needs of the public into the design of products &
services and the bank constantly endeavours to add enhancements in deference to
the wishes of the public and their varying needs in the liberalised economic
environment. Customer Delight is the primary driving principle behind the products
and services of the bank. The bank is offering more efficient and faster services
transcending time and distance constraints through the technology initiative - Core
Banking Solution (CBS) facilitating Anywhere and Anytime banking by the public.
Thus Syndicate Bank plays a vital role in the economic era and in the development
of our country in the rural as well as urban areas.
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53. Syndicate Bank
Bibliography : -
Web - site : - www.syndicatebank.com
Book : - Syndicate Bank
People’s Bank
By- M .V. Kamath
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