Syndicate Bank Management Discussions.

Macro-Economic Scenario Global Economy

Global economy strengthened in 2017 to 3.8 per cent, with a notable rebound in global trade, which is expected to tick up to 3.9 per cent in both 2018 and 2019 supported by strong momentum, favorable market sentiment, accommodative financial conditions, and the domestic and international repercussions of expansionary fiscal policy in the United States. According to IMF, while upside and downside risks to the short-term outlook are broadly balanced, risks beyond the next several quarters clearly lean to the downside. Downside concerns include a possibly sharp tightening of financial conditions, waning popular support for global economic integration, growing trade tensions and risks of a shift toward protectionist policies, and geopolitical strains.

Domestic Economy

On the domestic front, the economy recovered after the initial slowdown post demonetisation and implementation of GST. India registered an impressive GDP growth of 7.7 per cent in the fourth quarter (Q4) of financial year 2017-18 as against 5.6 per cent, 6.3 per cent and 7.0 per cent respectively, in the first three quarters, Q1, Q2 and Q3 of 2017-18. Rapid growth in agriculture (4.5%), manufacturing (9.1%) and construction sectors (11.5%) contributed to the overall growth. CSO in its provisional estimates has projected GDP growth rate at 6.7 per cent for the FY 2017-18.

IMF in its World Economic Outlook (WEO) report has projected Indias GDP growth at 6.7 per cent in 2017, 7.4 per cent in 2018 and 7.8 per cent in 2019 supported by strong private consumption as well as fading transitory effects of the currency exchange initiative and implementation of the national goods and services tax. Over the medium term, growth is expected to gradually rise with continued implementation of structural reforms that raise productivity and incentivize private investment. Surge in oil & food prices, and increased wages on account of HRA revision resulted in a sharp increase in inflation. The CPI inflation stood at 4.28 per cent as on March 2017-18 as against to 3.89 per cent in March 2016-17. Money supply increased by 9.6 per cent y-o-y to 140,144.8 billion as on March 30, 2018 as against 127,919.4 billion as on March 31, 2017.

External sector growth

During 2017-18, exports (merchandise trade) increased by 9.78 per cent to USD 302.84 Billion, from USD 275.85 Billion during the corresponding period of previous year. On the other hand, imports also increased by 19.59 per cent to USD 459.67 Billion from USD 384.36 Billion during the corresponding period of a year ago. Taking merchandise and services together, overall trade deficit for Apr-Mar 2017-18 is estimated at USD 87.17 Billion as compared to USD 47.70 Billion during Apr-Mar 2016-17. Foreign exchange reserves stood at USD 424.36 Billion as on March 30, 2018 as against USD 369.96 Billion as on March 31, 2017 registering a growth of 14.71 per cent. Whereas foreign currency assets stood at USD 399.12 Billion as on March 30, 2018 as against USD 346.32 Billion as on March 31, 2017 registering a growth of 15.25 per cent.

The rupee depreciated by 0.32 per cent against US Dollar, 14.10 per cent against Great Britain Pound, 16.42 per cent against Euro and 6.18 per cent against Japanese Yen during March 2018 over the previous year.

Banking Scenario

The deposits of Scheduled Commercial Banks in India increased by 6.7 per cent y-o-y to 114,749.89 billion as on March 30, 2018 as against an increase of 11.3 per cent (1,07,576.56 billion) as on March 31, 2017.

On the other hand, credit growth of Scheduled Commercial Banks increased by 10.3 per cent y-o-y to 86,507.14 billion as on March 30, 2018 as against an increase of 4.5 per cent (78,414.66 billion) as on March 31, 2017. The year 2017-18 saw the following changes in the key policy measures as announced by the RBI.

Repo rate reduced by 25 basis points (bps) to 6.00 per cent and Reverse Repo rate by 25 basis points (bps) to 5.75 per cent. Cash Reserve Ratio (CRR) remained unchanged at 4 per cent of Net Demand and Time Liabilities (NDTL). Statutory Liquidity Ratio (SLR) was decreased by 1 per cent to 19.50 per cent. The year 2017-18 was challenging for the Indian banking sector. Mounting NPAs cast a negative impact on the balance sheets of many PSBs. Most of the PSBs were constrained to meet their capital requirements on account of huge amount of provisioning on stressed assets. In an attempt to improve their capital position, some PSBs resorted to QIP placements and selling of stakes in investments made in their subsidiaries/non-core assets. The Government and the RBI undertook key measures to strengthen the banking sector. It unveiled a two-year plan to strengthen the public sector banks through reforms and capital infusion of 2.11 lakh crore (USD 32.43 Billion). The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017 Bill was passed to speed up the recovery process under stressed assets.


Bank has a Vision & Mission Statements which act as a guiding force not only for pursuing long term corporate goals but also paving way to acquire new business, improving customer service, visualize and seizing future market potentials and converting these opportunities into a long term business goals and advantages.

Our Vision

"Be a leading financially strong universal bank, creating value for stakeholders through customer centric, technology driven and employee friendly approach".

Our Mission

Be a leading provider of banking solutions providing range of financial services to all strata of society.

Be a highly recognized and visible brand, known for its customer service.

Be the most preferred place to work where employees feel proud and motivated.

Have state of the art technology & infrastructure creating delight among all stakeholders.

To deliver strong financial and operational performance.

Our Value Statement

"Good Corporate Governance through transparency in dealings in undertaking ethical business".


In order to improve the business level, customer service, governance and compliance and address the key issues with an anticipation of meeting future goal and changing market conditions, Bank is prudently pursuing corporate strategies to improve its competitiveness.

Bank conducted strategy meet on 23rd March, 2017 at Bengaluru involving Zonal Managers along with functional General Managers and select Regional Managers to discuss the strategies to be adopted for achieving the business goals of FY 2017-18 and identify and realize opportunities for future growth. The few of the major strategies adopted for the FY 2017-18 are as under:

1. CASA growth: Canvass institutional & government accounts, salary accounts, popularize ASBA accounts, activate inactive and dormant accounts, focus on digital banking products for reduction in transaction cost, improve operating efficiency and also to attract younger generation.

2. Agriculture: Identify & focus on investment credit areas, have regular village contact program, engagement of BCs for using their services for financial inclusion, business development and recovery, liaison with National Rural Livelihood Mission (NRLM) to generate good leads for SHG and JLG bank linkage, Tie up with NGOs and agri processing centers.

3. Retail & MSME: Focus on marketing housing loans, high value education loans, mapping of authorized dealers with the nearby branches/RLCs, Disburse jewel loans on all working days, Generate leads to increase Retail & MSME.

4. Recovery & Resolution: Target reduction of NPA level by minimum of 10% over March 2017 level, Constant follow up of SMA accounts to arrest fresh slippage, lodge CGTMSE claims in all eligible cases, Engage recovery/enforcement agents for seizure and sale of vehicles/ assets.

5. Non Interest Income & Fee based income: Focus on increasing non fund based business, Cross selling banks and third party products, refrain from recommending for concession in charges, reduce operating expenses through concerted efforts in cost cutting.

6. Compliance: Development of excellent compliance culture, Undertake proper rectification/ compliance of audit observations, Ensure tallying of all GL heads, Compliance of all regulatory directions meticulously.

For the FY 2018-19, your Bank has realigned its Business Strategy as per the reforms agenda of the Government of India under Enhanced Access and Service Excellence (EASE) focusing on the six themes. (i) Customer Responsiveness- Ease for customer comfort (ii) Financial stability, improved Governance and Ease for clean & prudent Business, (iii) Proactive delivery of credit, (iv) Ease of Financing and bill realisation for MSMEs, (v) Deepening of Financial Inclusion & Digitalization and (vi) Developing personnel for brand PSBs.

Your Bank is committed to implement the reforms agenda as advised by the Government of India for which the Board meeting to discuss Business Strategy was held at Manipal on 15th March, 2018 to lay down road map and strategy to enhance business in defined areas, optimize capital, improve operational efficiency and increase stakeholders value.


Bank considers business promotional strategies as a tool to make continuous effort to popularize various products and garner more business. Bank had initiated number of promotional campaigns during the year 2017-18. Few of them are as under.

CASA campaign: To achieve significant growth in low cost deposits which has many fold advantages including reduction in cost of deposits, Bank launched CASA campaign.

Home Loan Star campaign: Keeping in view the stiff competition in Housing loan sector, Bank has conducted Home Loan Star campaign.

Agriculture lending campaign: In order to increase advance under agriculture, Bank had organized agriculture lending campaign. During the campaign, thrust was given to increase crop production credit, investment credit and linkage of SHGs/JLGs.

Gold loan campaign: In order to tap the full potential under Gold loan portfolio, Bank organized Gold loan campaign.

Digital Promotional Campaign: In order to have a focused approach to drive Digital Transactions, your Bank launched Digital Promotional Campaign, for customer adoption of digital channels and on boarding of merchants.

LIC Campaign: To boost fee based income and also to provide to insurance coverage to customers, Bank launched "LIC Vijayotsav" campaign, in tie - up with LIC of India.

Synd Vasuli Abhiyan 1718: Bank organized Synd Vasuli Abhiyan17-18, an incentive scheme to recognize performance of the branches and regions for maximizing recovery and NPA management through up-gradation and avoidance of fresh slippages.


Tangible Net Worth of the Bank (excluding Revaluation Reserve, Foreign Currency Translation Reserve and net DTA) decreased from 12,392 crore as at March 31, 2017 to 11,771 crore as at March 31, 2018.


The Bank has incurred net loss of 3,223 crore during the financial year 2017-18. As the Bank does not conform to the eligibility criteria prescribed by RBI for declarations of dividend, the Board has not recommended any dividend.

Capital & Reserves

Banks authorized share capital stood at 3,000 crore and the paid-up capital 1,417crore (141,72,72,053 equity shares of 10/- each) during the financial year ended as at March 31, 2018. The Reserves and Surplus of the Bank increased from 13,280 crore in FY 2016-17 to 13,525 crore in FY 2017-18, registering a y-o-y growth of 1.84 per cent over the previous year.

Capital Adequacy Ratio, under Basel III, improved to 12.24% as at March 2018 against the regulatory requirement of 10.875%, including capital conservation buffer of 1.875%. Within the capital adequacy ratio, CET I ratio was at 7.56% and Tier I capital ratio was at 9.41%.

Composition of Capital

March 2017

March 2018



Risk Weighted Assets






CET I (%)






AT I (%)



Tier I Capital



CRAR (%) (Tier I)



Tier II Capital



CRAR % (Tier II)



Total Capital



CRAR (%)



During 2017-18, the Bank raised 4,940 crore capital comprising equity capital of 3,990 crore from QIP and preferential allotment to Government of India and 450 crore additional tier I capital and 500 crore tier II capital by issuing Basel III compliant Tier I and Tier II bonds. The Bank is comfortable in the capital front. Government of Indias shareholding in the Bank is at 73.07%.


The global business of the Bank stood at 4,96,122 crore as at March 31, 2018 as compared to 4,67,626 crore as at March 31, 2017 whereas, Banks domestic business stood at 4,22,569 crore as at March 31, 2018 as compared to 4,05,920 crore as at March 31, 2017.


Global deposits of the Bank stood at 2,72,776 crore as at March 31, 2018 as compared to 2,60,561 crore as at March 31, 2017. Domestic deposits of the Bank stood at 2,41,092 crore as at March 31, 2018 as compared to 2,34,543 crore as at March 31, 2017.

CASA Deposits

Domestic CASA deposits of the Bank increased from 75,792 crore as at March 31, 2017 to 80,362 crore as at March 31, 2018, registering a growth of 6.03 per cent. Per centage of domestic CASA share to domestic deposits stood at 33.33 per cent as at March 31, 2018.

Credit Deployment

The Banks global advances increased from 2,07,065 crore as at March 31, 2017 to 2,23,346 crore as at March 31, 2018. Domestic advances grew from 1,71,377 crore as at March 31, 2017 to 1,81,477 crore as at March 31, 2018. The global credit deposit ratio stood at 81.88 per cent as at March 31, 2018 as compared to 79.47 per cent as at March 31, 2017.

Priority Sector Advances increased from 67,905 crore in 2016-17 to 72,762 crore in 2017-18 registering a growth of 7.15 per cent and forming 42.41 per cent of ANBC as against mandatory level of 40 per cent.

Total Agriculture Advances increased from 31,878 crore in 2016-17 to 33,822 crore in 2017-18 registering a growth of 6.09 per cent and forming 19.28 per cent of ANBC as against mandatory level of 18 per cent.

MSE Advances stood at 24,888 crore as at March 31, 2018 as compared to 24,866 crore as at March 31, 2017. MSME Advances increased from 26,981 crore in 2016-17 to 27,306 crore in 2017-18 registering a growth of 1.20%.


Operating profit of the Bank decreased to 3,864 crore for the FY 2017-18 from 4,233 crore for the FY 2016-17, a decline of 8.72 per cent. Net loss of the Bank stood at 3,223 crore for the FY 2017-18 as against Net Profit of 359 crore for the FY 2016-17.

Employees Productivity

Business per employee (excluding Bank Deposits) of the Bank stood at 14.39 crore as at March 31, 2018 as compared to 13.51 crore as at March 31, 2017. Profit per employee for the year FY 2017-18 was (9.91) lakh.

Income & Expenditure

The Banks total income stood at 24,582 crore in the FY 2017-18 as compared to 26,461 crore in the FY 2016-17.

The Banks interest income stood at 21,776 crore in the FY 2017-18 as compared to 23,004 crore in the FY 2016-17.

The non-interest income of the Bank declined by 18.83 per cent from 3,457 crore in the FY 2016-17 to 2,806 crore in the FY 2017-18.

The Interest expenditure of the Bank decreased to 15,224 crore in the FY 2017-18 as against 16,728 crore in the FY 2016-17, recording a decrease of 9 per cent.

However, the Banks Net Interest Income (NII) increased by 4.40 per cent from 6,276 crore in the FY 2016-17 to 6,552 crore in the FY 2017-18.

Operating expenditure of the Bank decreased by 0.11 per cent from 5,500 crore in the FY 2016-17 to 5,494 crore in the FY 2017-18.

Important Financial Ratios a) The Banks Net Interest Margin (NIM) improved to 2.44 per cent in the FY 2017-18 as compared to 2.37 per cent in the FY 2016-17. b) The yield on advances of the Bank stood at 7.51 per cent in the FY 2017-18 as compared to 8.34 per cent in the FY 2016-17. c) The cost of deposits of the Bank stood at 5.10 per cent in the FY 2017-18 as compared to 5.86 per cent in the FY 2016-17. d) The Book Value Per Share of the Bank stood at 105.43 in the FY 2017-18 from 154.64 in the FY 2016-17. e) Net NPA ratio of the Bank stood at 6.28 per cent as at

March 31, 2018 as compared to 5.21 per cent as at March 31, 2017. f) Gross NPA ratio of the Bank stood at 11.53 per cent as at March 31, 2018 as compared to 8.50 per cent as at March 31, 2017. g) NPA provision coverage ratio of the Bank stood at 60.71 per cent as at March 31, 2018 as compared to 56.37 per cent as at March 31, 2017. h) The Capital Adequacy Ratio (CRAR) of the Bank, as per Basel III improved to 12.24 per cent as at March 31, 2018 as compared to 12.03 per cent as at March 31, 2017.

Financial Performance

Key Financial Ratio (%)

March 2017

March 2018

Cost of Funds



Yield of Funds



Cost of Deposits



Yield on Advances



Yield on Investments



Net Interest Margin (NIM)



Return on Assets (RoA)



Return on Equity (ROE)



Cost to Income Ratio



Earning Per Share (EPS)



Book Value Per Share



Net NPA Ratio



Gross NPA Ratio



Provision Coverage Ratio




During the year, the Bank has added 105 Banking Outlets to its network and the total number of Banking Outlets were at 4013 as on 31st March, 2018 and Banking Outlets network consists 1239 rural, 1127 semi-urban, 813 urban, 833 metro and 1 overseas Banking Outlet at London. These include 1,305 outlets in under banked districts and 996 outlets in minority concentration districts.

As per RBI guidelines, banks are required to open 25 per cent of the new Banking Outlets in rural unbanked tier 5-6 centers. During the FY 2017-18, 26 new Banking Outlets are opened in Unbanked Rural Centres (URC)/Left-wing Extremism (LWE) districts. In addition, Bank has 979 Part-time Banking Outlets (Ultra Small branches) as on 31.03.2018. The Bank also merged 25 unviable Banking Outlets. The Bank has opened 9 Regional Offices (ROs) and 14 Retail & MSME Loan Centers (RMLCs) during the FY 2017-18. The total number Automated Teller Machines (ATMs)/ Bunch Note Acceptors (BNAs) installed up to 31st March, 2018 was at 4248. The Bank adopted the New Branch Expansion Policy as per RBI Notification dated 18.05.2017. The Bank has a customer base of over 55 million as at March 31, 2018.


Retail lending continues to be the thrust area of the Bank on account of spread of risk, better yield of advances and stability of credit portfolios due to longer repayment period. Income stream from retail credit portfolio has shown steady improvement and this has contributed to profitability, maintaining quality of asset portfolio, risk distribution and improvement of Net Interest Margin of the Bank. Retail portfolio contributes nearly 19.79 per cent of domestic credit of the Bank.

Retail Business & MSME Department has been consistently making efforts to design new products and modify the existing products in tune with market trend. Performance under retail credit portfolio is as under. ( in crore)

Annual growth






Housing loans





Vehicle loans





Education loans





Other retail loans










LD & ODD up to 5





crore and staff loans





Major initiatives Housing loans

Bank has introduced central processing centers for processing, strengthening quality advances under Retail and MSME loans. Bank has converted all the existing 13 central processing centers (CPCs) to Retail and MSME Loan Centers (RMLCs) and 14 new RMLCs have also been opened in potential centers to standardize and streamline processing of the Retail & MSME loans without delay.

With the introduction of RMLCs, branches will be free to act as selling agents with focused approach. Bank is in the process of identifying such RMLCs in other potential centers, as well.

Bank has introduced the empanelment of Home Loan Counselors (HLC) for canvassing/mobilizing housing loans.

Bank has waived processing and documentation charges on housing loans up to 31.03.2018.

Bank has introduced Housing loan (CRE) scheme for financing of third house onwards with interest i.e at MCLR+1.10 per cent.

Home Loan Star campaign: Keeping in view of stiff competition in Housing loan sector, Bank has conducted Home Loan Star campaign from 01.08.2017 to 31.03.2018. During the star campaign 19,116 housing loans were mobilized amounting to 2,901 crore.

Vehicle Loans

Bank has reduced rate of interest and also waived processing and documentation charges during festive seasons from 27.09.2017 to 31.01.2018.

Bank has also implemented 50% waiver of processing and documentation charges during financial year 2017-18.

Education loans

Bank has introduced Synd Vidya–Abroad educational loan scheme, an education loan facility above 20.00 lakhs and up to 200.00 lakhs to students who wish to go abroad for study.

Bank also integrated with "Vidyalakshmi Portal", an initiative by the Ministry of Human Resources Development to facilitate students to apply for education loans online.

Bank has also implemented the "Credit Guarantee Fund Scheme for Education Loans", to provide collateral free education loans up to 7.50 lakh and "Credit Guarantee Fund Scheme for Skill Development" to provide collateral free education loans for skill development up to 1.50 lakh to students.

Gold Loans

Bank has introduced new gold loan product "SyndSwarna"–Half yearly bullet repayment as well as EMI repayment facility with enhanced scale of finance at 70% net value of gold. Half yearly bullet repayment facility to mitigate emergency financial needs of rural people.

Strength in Rural Retail Lending:

Bank has 59% of Rural and Semi urban branches which are contributing 37% of total Retail portfolio of the Bank.

Bank is having "SyndKutteer" scheme to improve flow of credit for housing needs of the Economically Weaker Sections(EWS) and Low Income Groups (LIGs) segment in Rural/Semi Urban areas to accomplish Govt of India Mission of "Affordable Housing to All".

In certain states, Education loans are also extended by considering agriculture properties as collateral security. Bank has also introduced different schemes like Housing loans, Vehicle loans, Personal loans, Mortgage loans, Retail trade for small vendors, shopkeepers and Retail traders and loans for transport operators besides lending to Agriculture.


Bank continues to accord greater thrust on financing MSMEs with emphasis on Micro and Small Enterprises (MSEs). The Bank has sanctioned 1,17,422 MSME loans and disbursed amounting to 4,708 crore in the year 2017-18. The advances to Micro and Small Enterprises constitutes 90.45 per cent of the total advances under MSME sector while advances to Medium Enterprises constitutes 9.55 per cent under MSME.

MSE Advances increased from 24,866 crore in 2016-17 to 24,888 crore in 2017-18. MSME Advances stood at 27,306 crore as at March 31, 2018 as compared to

26,981 crore as at March 31, 2017.

Under MUDRA scheme, Bank has sanctioned 1,85,377 accounts amounting to 3,945 crore against target of 4400 Crore allotted by the Ministry of Finance and disbursed 3,272 crore as on 31.03.2018.

Bank has sanctioned 701 accounts amounting to 178 crore and disbursed 110 crore as on 31.03.2018 under Stand up India Scheme. The outstanding advances to Micro Enterprises of the Bank constitute 17,705 crore of advances to Micro and Small Enterprises Sector at 27,306 crore which is above the stipulated target of 60% as on March 2018.

Other Initiatives taken to increase credit flow to MSME Sector

In order to increase credit flow to MSME sector, the following initiatives have been taken by the Bank.

Trade Receivables Discounting System (TReDS):

Bank has executed MoU with Receivables Exchange of India Ltd (RXIL) on 11.01.2018 for on boarding their TReDS platform. Presently, Large Corporate Branch, Mumbai is designated as Authorized Branch for operations with effect from 30.03.2018. Trade Receivable Discounting System (TReDS) is an institutional mechanism set up for financing of trade receivables of MSMEs from corporates and other buyers including Government Departments and Public Sector Undertakings (PSUs) through multiple financiers. Bank has taken steps to rationalize MSME products. In order to simplify the process at operational level,

6 MSME products are modified and 8 products are discontinued, bringing down the number of MSME products from 14 to 6, as anchor products.

Bank has organised MSME meets & MUDRA camps to augment business under MSME.

Bank has entered into MOU with reputed Manufacturers of Commercial vehicles like Tata Motors, Bajaj Auto, TVS Motors, Force Motors, Ashok Leyland, Piaggio Vehicles Pvt Ltd, Saera Electric Auto Pvt Ltd, Eicher Polaris Pvt Ltd and BEML Ltd for preferred financier for financing customers of the companies for purchase of various models of commercial vehicles to increase credit under transport sector. 76 MSME branches renamed as UdyamiMitra branches.


Based on the Banks experience in lending to different sectors and keeping in view the dynamics of economic growth, Government directives, national priorities and socio-economic obligations, thrust was given to priority sector lending.

The Bank has adopted various strategies during the year to achieve sustainable credit growth, improved asset quality, higher earnings and for maintaining well diversified credit portfolio covering all sections of the society to ensure inclusive growth. The Bank has continued its growth under priority sector lending with added thrust on consolidation of its position and focus on asset quality. The focus areas for credit were agriculture, SMEs, education, housing, micro finance and other productive sectors of the economy.

Priority Sector Advances

Priority sector advances of your Bank increased by 7.15 per cent to 72,762 crore as at March 2018 (from 67,905 crore as at March 2017) constituting 42.41 per cent of Adjusted Net Bank Credit (ANBC) against the mandatory level of 40 per cent. The Bank has covered more than 33.39 lakh customers under priority sector advances. Special care was taken to ensure that the credit needs of SC/ST, minorities, weaker sections and women are fully met. Advances to weaker sections have reached a level of 24,710 crore forming 14.40 per cent of ANBC, thereby surpassing the mandatory requirement of 10 per cent. The advances to women customers increased from 18,778 crore as at March 2017 to 20,455 crore as at March 2018, forming 11.92 per cent of ANBC against the mandatory level of 5 per cent. Similarly, advances to minorities increased from 10,611 crore as at March 2017 to 11,060 crore as at March 2018, forming 15.20 per cent of priority sector advances surpassing the mandatory requirement of 15 per cent.

Agriculture and Allied activities

Credit to agricultural sector increased by 6.09 per cent to 33,822 crore as at March 2018 (from March 2017 level of 31,878 crore) forming 19.28 per cent of ANBC as against the mandatory requirement of 18 per cent. Lending to small and marginal farmers being 18,328 crore constituted 10.68 per cent of ANBC against the mandatory requirement of 8.00 per cent.

Bank has covered more than 23.82 lakh customers under agricultural advances. The disbursement under credit flow to agriculture during the year amounted to 20,475 crore. The Bank has brought 1,36,298 new farmers into its fold during the year through rural/semi-urban branches, registering an average of 58 new farmers per rural and semi-urban branch.

Your Bank has been consistently surpassing the mandatory targets under small & marginal farmers category and lending to non-corporate farmers. Your Bank has sold the surplus amount of 2,000 crore to peer banks under small and marginal farmer category.

Syndicate Kisan Credit Card Scheme (SKCC)

As per the directions of RBI, Bank is implementing the Kisan Credit Card under Syndicate Kisan Credit Card (SKCC) Scheme and the revised guidelines involve the following.

Fixation of staggered limit for five years.

Provision for issuance of cheque book and ATM / Debit Cards (Rupay Kisan Cards) which will enable the farmers to effectively transact their operations in their SKCC accounts.

The Bank has sanctioned 5.63 lakh SKCC A/cs amount involving 8149.01crore during the year 2017-18. As at March 2018, Rupay Kisan Cards have been issued in 7.59 lakh operative SKCC A/cs.

Government Sponsored Schemes:

The Bank continued to participate in poverty alleviation and employment generation schemes sponsored by the Government in full scale. Special emphasis was laid on coverage of SC/ST/OBC, women and minority beneficiaries under these schemes. The total amount outstanding under these schemes viz. National Rural Livelihood Mission(NRLM), National Urban Livelihood Mission (NULM), Prime Minister Employment Guarantee Programme (PMEGP), and Self Employmentr Scheme for

Rehabilitation of Manual Scavengers (SRMS) is 3531.24 crore with 1,33,495 borrowal accounts during the year. NRLM Scheme has been revamped & restructured as Swarna Jayanti Grameen Swarojgar Yojana (SGSY) with effect from the financial year 2015-16. NULM scheme has been revamped as Swarna Jayanti Sahari Rojgar Yojana during 2015-16 and is implemented in all district headquarters and all other cities with a population of 100,000 or more as per 2011 census. Both NRLM and NULM now remodeled as Deen Dayal Antyodaya Yojana from 25th September 2015.

Advances to SC/ST

The coverage of SC/ST beneficiaries under various schemes, especially under Govt. Sponsored Schemes is reviewed at regular intervals. Bank has initiated special efforts to create awareness about various schemes of the Bank among SC/STs to motivate them to avail the benefits under these schemes. Advances to SC/ST beneficiaries under Priority Sector, rose from 4,520 crore as at March 2017 to 4,581 crore as at March 2018. Disbursement and outstanding position of advances to SC/ST beneficiaries under Govt. Sponsored Schemes (i.e.PMEGP, NRLM & NULM) are furnished in the following tables: Advances disbursed to SC/ST beneficiaries under Govt. Sponsored Schemes during 2017-18 (as on March 2018) (Amount in crore)


Total Disbursement

Of which SC/ST

% to SC/ST against total (For Accounts)





























Outstanding advances to SC/ST beneficiaries under Govt. Sponsored Schemes (as on March 2018)

(Amount in crore)


Balance outstanding

Of which SC/ST

% to SC/ST against total





(For Accounts)

























Advances to Minorities

Bank has taken various measures through Regional Offices and Lead District Offices for popularizing amongst minority communities the various credit products available for their benefit. The advances to minorities rose from 10,611 crore as at March 2017 to 11,060 crore as at March 2018, registering a year on year growth of 4.23 per cent. Special interest concession scheme ranging from 0.25 per cent to 0.50 per cent was introduced by the Bank during 2010 for the benefit of minority community under priority sector lending and the same is continued during 2017-18.

Credit linkage of Joint Liability Groups and Self Help Groups

The advances extended to Joint Liability Groups and Self Help Groups as at March 2018 was 1,30,736 accounts with an outstanding balance of 3,402 crore. A joint liability group is an informal group comprising 4 to 10 individual farmers who come together to access institutional credit through JLG mode of financing. Bank has been lending to SHG/JLGs both directly as well as through MFIs/NGOs. Bank has tied up with M/s IDF foundation under "Save the Farmers Campaign" in Karnataka for credit linking the JLG/SHGs. This Project includes formation of JLGs/ SHGs from the Small Farmers, Marginal Farmers, and Oral lessees, Share croppers, mentoring them through financial literacy and imparting sustainable farm livelihood technologies to de-risk the farm production, enable access to affordable Bank finance for Agriculture through KCC and other products through the Business Correspondents/Business Facilitators channel, promoting thrift culture and regular follow up for repayments. During the FY 2017-18, Bank has sanctioned 8,773 SKCC loans amounting to 30.86 crore to JLG members.

Bank has entered into a tie-up with M/s. Vrutti Livelihood Resource Centre, for implementation of a Wholesome Financial Inclusion Project in the States of Madhya Pradesh (MP), Telangana & Karnataka by promoting Joint Liability Groups (JLGs) & Women Self Help Groups (SHGs) on a pilot basis. The main objective of this tie-up arrangement is to provide access to Banking services to the organised Small Farmers, Marginal Farmers, Tenant Farmers, Oral Lessees & Share Croppers through Joint Liability Groups & Women SHGs. During the FY 2017-18, Bank has sanctioned 368 SKCC loans amounting to 1.10 crore to JLG members.

Interest subvention benefit to farmers

The Bank has extended crop production credit to 5.63 lakh farmers during 2017-18 under interest subvention scheme of the Govt. of India. The bank has extended the interest subvention benefit @ 2 per cent to the tune of 182 crore and 193 crore as additional incentive of interest subvention @ 3 per cent for timely repayment during 2017-18 and making the eligible farmer derive credit at the effective prescribed interest rate of 4 per cent p.a.

Renewable Energy

The Bank has been actively promoting solar energy application by implementing the schemes for financing Solar Water Heating Systems and Solar Lighting Systems. The Bank is presently implementing the scheme to extend finance to Solar Home Lighting Systems and Solar Water Heating Systems with subsidy assistance from Ministry of New and Renewable Energy (MNRE) under Jawaharlal Nehru National Solar Mission (JNNSM). During the financial year 2017-18, the Bank has extended credit to 380 customers amounting to 3.77crore under renewable energy category.

Rural Extension Education Programmes

Bank has been organizing Rural Extension Education Programmes mainly through the rural and semi-urban branches for promoting awareness among the rural people on modern agriculture & rural technologies and Banks credit programmes. During the financial year 2017-18, the Bank has organized 3,592 Rural Extension Education Programmes benefiting 1,73,901 participants with an expenditure of 21.91 lakhs.

Crop Insurance Schemes

The following three crop insurance schemes were introduced by Govt of India from Kharif 2016 (From 01.04.2016 onwards). These schemes are as under: PMFBY (Pradhan Mantri Fasal Bhima Yojana) Restructured WBCIS (Weather Based Crop Insurance Scheme) UPIS (Unified Package Insurance Scheme)

The eligible KCC holders are covered with respective crop insurance schemes. Bank has enrolled 3,02,588 KCC accounts under these crop insurance schemes in Kharif-2017 season. In Rabi 2017-18, 1,18,714 farmers are covered under crop insurance schemes.

Relief to drought/calamity affected farmers

Bank is taking necessary steps as per RBI guidelines to extend immediate relief to farmers affected by natural calamities such as restructuring of existing crop loans and term loans, extending fresh loans, relaxing security and margin norms, moratorium of minimum 1 year, no penal interest in respect of current dues in default, etc. Interest subventions provided by Govt. of India for the restructured accounts on account of natural calamities are being extended to all the eligible cases.

Rural Development and Self Employment Training Institute (RUDSETI)

Bank has co-sponsored 27 Rural Development and Self Employment Training Institutes (RUDSETIs) across the country.

These institutes have trained 24,074 candidates during the year 2017-18. Out of these trained candidates11,350 are women & 6,873 are from SC/ST category. Total candidates trained since inception is 4,47,125. The settlement rate is 73 per cent.

Our RUDSETI model has been accepted by Ministry of Rural Development, Govt. of India as a role model to be replicated in each district of the country. A Monitoring cell of National Academy of RUDSETIs has been established at Bengaluru for monitoring these RSETI institutes and their activities pan India.

Syndicate Rural Development Trust (SRDT)

Syndicate Rural Development Trust (SRDT) was established in the year 2000 to promote rural entrepreneurship and self-employment among the rural poor, especially women. So far, the Bank has established 16 SyndRural Self Employment Training Institutes (Synd RSETIs) in 5 States and 1 Union Territory for imparting training to rural poor. During the Financial Year 2016-17, out of the 16 SyndRSETIs, 12 RSETIs have secured "AA" rating. Your Bank has been conferred with an Award of Excellence (First Prize) from Ministry of Rural Development, in recognition of exemplary leadership given to the RSETIs sponsored by the Bank for the years 2014-15 and 2015-16 consecutively. During the year 2017-18, 451 training programs were conducted benefitting 11,219 persons, of whom 6,055 were women and 2,759 were from SC / ST category.

Lead Bank Scheme

The Bank has been assigned with lead bank responsibilities in 29 districts inclusive of UT of Lakshadweep across the country. All the Lead District Offices of the Bank have conducted the District Level Review Committee (DLRC) meetings and District Consultative Committee (DCC) meetings regularly. The credit planning process was completed and District Credit Plan (DCP) 2017-18 was launched as per time schedule envisaged by RBI. The Bank is also the convener of State Level Bankers Committee (SLBC) in Karnataka and the Union Territory of Lakshadweep and satisfactorily discharged the responsibilities cast on it as the convener of State Level Bankers Committee. The SLBC for Karnataka and UTLBC for Lakshadweep are implementing the recommendations of the High Level Committee to review the Lead Bank Scheme.

Under District Credit Plan, Banks lead districts have shown 82.98 per cent achievement under priority sector and 82.54 per cent progress under agriculture as on March 2018 in respect of implementation of Annual Credit Plan 2017-18.


There are three Regional Rural Banks sponsored by our Bank. These are Andhra Pragathi Grameena Bank in Andhra Pradesh, Karnataka Vikas Grameena Bank in Karnataka and Prathama Bank in Uttar Pradesh. These RRBs are covering 18 districts in 3 states with a network of 1598 branches & 236 ATMs. RRBs sponsored by our Bank are in the top league among various RRBs of the country, in respect of key business parameters. Total Business of RRBs sponsored by our Bank stood at 62,741 crore as on 31.03.2018.

The total deposits and advances of the RRBs have reached a level of 34,550 crore and 28,190 crore respectively. Total Priority sector advances stood at 25,523 crore constituting 90.54 per cent of the total advances as at 31.03.2018. Agriculture advance have reached a level of 21,003 crore forming 74.50 per cent of total advances. All the RRBs have issued 12.60 lakh Kisan Credit Cards to farmers with an outstanding credit of 13,828 crore. Auto movement of NPAs is implemented in all the three RRBs. The RRBs are making profit continuously since their inception.

All the branches of our sponsored RRBs are under CBS platform with RTGS and NEFT facilities. RRBs are onboarded with APBS/NACH platform, ECS, CPSMS, Mobile Banking, IMPS, e-commerce, e-pass book, UPI & BHIM. RRBs have actively participated in PMJDY and have canvassed 25.72 lakhs SB accounts and issued 24.73 lakhs RuPay Cards as on 31.03.2018. These RRBs enrolled 17.69 lakh under PMSBY, 6.11 lakh under PMJJBY and 1.28 lakh under APY schemes respectively. Aadhaar seeding & Aadhaar authentication is achieved to the extent of 91.83 per cent & 61.83 per cent respectively. All the three RRBs sponsored by your Bank have implemented FI Plan (2016-2019) as per the direction of the Reserve Bank of India and Government of India.


Bank has covered all the allotted 3229 Sub Service Areas (SSAs) covering 6953 villages, and deployed 2,630 Bank Mitrs across the country to provide Banking services to the villages.

Pradhan Mantri Jan-Dhan Yojana

"Pradhan Mantri Jan-Dhan Yojana" (PMJDY) was launched by the Honble Prime Minister on 28.08.2014 with an objective of covering all the uncovered households in the villages and urban wards with a bank account to provide banking facilities, in a mission mode.

Bank has opened 44.38 lakh Basic Savings Bank Deposit (BSBD) under PMJDY as on 31.03.2018 with an outstanding balance of 1,264.15 crore out of which 35.48 lakh PMJDY accounts (79.95 per cent) have been seeded with Aadhar against industry average of 78 per cent.

Business Correspondent (Bank Mitr)

Bank has appointed 2630 Bank Mitrs and all are provided with interoperable Micro ATMs for undertaking AEPS and RuPay card transactions. 2552 Bank Mitrs have actively performed transactions during the year. The number of transactions through Micro ATMs increased considerably during 2017-18 and per day, per micro ATM transactions have increased from 13 as at 31.03.2017 to 20 as at 31.03.2018.

Banking Outlet:

The Banks authorisation policy on Branch expansion has been approved by Board and adopted by the Bank as per revised guidelines issued by RBI on 18.05.2017.

According to the above revised RBI guidelines, a "Banking Outlet" is a fixed point service delivery unit, manned by either banks staff or its Business Correspondent where services of acceptance of deposits, encashment of cheques/ cash withdrawal or lending of money are provided for a minimum of 4 hours per day for at least five days a week. It carries uniform signage with name of the bank and authorisation from it, contact details of the controlling authorities and complaint escalation mechanism and uninterrupted service. The working hours/ days need to be displayed prominently.

A banking outlet which does not provide delivery of service for a minimum of 4 hours per day and for at least 5 days a week will be considered a ‘Part-time Banking Outlet. Necessary guidelines have been issued by the bank in this regard.

Establishing Aadhaar Seva Kendra

Bank has set up 564 Aadhaar Seva Kendras as against the target of 403 centers. Besides, 677 officers of the Bank have successfully taken the UIDAI certification exam for functioning as supervisors cum verifiers in the Aadhaar Seva Kendras established by the Bank.

Technology Initiatives

During the year 2017-18, the Bank has undertaken following technology initiatives for the ease of doing the business under Financial Inclusion activities.

Dual Authentication of SHG in Micro ATMs

Aadhaar Authentication through Micro ATMs by eKYC

OTP based Aadhaar Authentication facility in Bank Website

Financial Literacy Centers (FLCs)

Bank is promoting Financial Literacy through Jeevan Jyoti Financial Literacy & Counselling Centres (JJFLCC) Trust which has opened 55 Financial Literacy Centers (FLC) and 21 Financial Inclusion Resource Centers (FIRC) in the lead districts of the Bank. During the year 16481 literacy camps have been conducted benefitting 764531 persons. As advised by RBI, your Bank has set up 21 Financial Inclusion Resource Centers (FIRCs) in 5 states. FIRCs provide a permanent storehouse of information in the form of exhibition on various facets of banking services and its products, RBI and its functions, Currency Notes etc.

Centre for Financial Literacy (CFL)

Bank has set up Centre for Financial Literacy (CFL) in all the allotted 15 blocks in 4 districts viz Ballari, Nellore, Gurgaon

& Mewat districts, where your Bank is having lead bank responsibilities.


The Bank extends finance to corporates for their short term as well as long term requirements. Exposure of above 100.00 crore are handled by corporate credit department. The loans offered are working capital finance, term loan finance, project finance such as commercial real estate, infrastructure projects and other projects, loan against future rent receivable, etc.

Project Appraisal Cell (PAC)

Project Appraisal Cell has been constituted for preparation of detailed appraisal/ vetting of TEV study/ Information Memorandum. PAC undertakes detailed appraisal in respect of term loan proposals with project cost of 70.00 crore and above and Banks exposure of above 35.00 crore where production / construction / process is involved.

In respect of projects already appraised by PSBs/ all India financial institutions/ leading private sector banks/ other reputed agencies, vetting is done by PAC for exposures above 100.00 crore. This initiative will reduce the Turn Around Time (TAT) for credit proposals as well as providing such services to our branches at a short notice.


Mid Corporate Credit Department of the Bank caters to the credit requirements of smaller corporates whose credit requirement range between 35 crore to 100 crore. The Mid Corporate Credit Department handles such credit proposals received from all branches across the country, which includes sectors such as manufacturing, services, commercial real estate, MFIs, NBFCs, infrastructure, proposals under low priority industries etc. As on 31.03.2018, Bank has 23 Mid Corporate branches with business volume of 7,869.87 crore. These branches are provided with trained and experienced credit officers to handle high value credit proposals.


In order to have a comprehensive system of monitoring the credit on an ongoing basis and to ensure asset quality of advances, Bank has constituted a separate vertical Credit Monitoring and Review Department (CMRD) at Corporate Office headed by a General Manager, in which the Special Mention Accounts Cell, Credit Monitoring Cell and Corporate Debt Restructuring Cell are merged into Credit Monitoring and Review Department in 2014. Bank has formulated a comprehensive Credit Monitoring Policy, which is being fine-tuned from time to time.

The Department is primarily responsible for framing policies related to Credit Monitoring. Further, the Department is reviewing the sanctions in respect of the advances sanctioned by Regional and Zonal Offices.

For effective and timely monitoring, a system based monthly monitoring report (MMR) for borrowal accounts of 1.00 crore and above is put in place in order to obtain qualitative information pertaining to regularity of the account, renewal status, inspection/audit details, unit visits, insurance coverage, security creation, performance of the unit, banking arrangements, rating details etc. The monthly monitoring report acts as an early warning system and facilitates the top management to have an overall view on the health of the credit portfolio.

As per the Reserve Bank of India guidelines, Bank has introduced a system of legal audit wherein re-verification of title deeds/fresh legal opinion in respect of advances of 5.00 crore and above, backed by mortgage of properties, is done, where earlier legal opinion has completed 2 years. Department is also monitoring compliance of this process. Further, the Department is also monitoring conduct of stock audit in respect of eligible accounts.

Department consists of a stressed asset cell which handles accounts referred to CDR and SDR / S4A schemes pertaining to accounts already referred under CDR. The department handles accounts referred under Insolvency and Bankruptcy Code 2016 for resolution of Stressed Assets. Department of Financial Services, Ministry of Finance, Government of India has directed all Banks to create a separate vertical to manage stressed assets and high value Special Mention Accounts as part of Reforms Agenda for Responsive & Responsible PSBs.

Accordingly, the Bank has created a "Stressed Assets Management Vertical" to monitor all the stressed assets of the Bank.


A separate cell called "special mention accounts cell" is functioning under the department. The accounts which are showing sign of irregularities / sickness are known as special mention accounts. Major function of SMA cell is to identify the accounts showing early sign of irregularities, sickness so that timely effective action can be taken to maintain the quality of assets and to prevent them from slipping to NPA.

The Department is vested with the responsibility of overall monitoring of Special Mention Accounts (SMA). Department is entrusted with the task of devising appropriate reporting system/MIS and collecting data at regular intervals, for maintaining the asset quality.

The department is also entrusted with the collection of data / MIS at regular intervals in respect of restructured and DCCO extended accounts. The department gets account-wise details of restructured accounts directly from MIS on quarterly basis and maintains database of such accounts for further reference and information to regulator. The Bank has followed the RBI regulations both on Special Mention Accounts and on restructuring of accounts by careful assessment, quick detection of weaknesses and time-bound implementation of restructuring package.

The department monitors the status of restructured accounts by contacting Regional/Zonal Offices and branches to contain the restructured accounts from further slippage and to maintain the status-quo. The department also monitors the status of achievement of DCCO extended accounts and makes special provisions at every quarter end for DCCO extended accounts beyond the prescribed period. The department consolidates the data of restructured accounts, FITL accounts and DCCO extended accounts at every quarter end for making final provisions and to submit the data to the Regulator, Rating Agencies, branches and other departments of Corporate Office.

Borrowers having aggregate fund-based and non-fund based exposure of 5 crore and above were hitherto reported to RBI on quarterly basis As per RBI new Notification RBI/2017-18/131/DBR. BP.BC.101/21.04.048/2017-18 dated 12/02/2018, all 5 crore and above borrowal accounts are to be reported on monthly basis instead of quarterly under the CRILC platform with effect from 01.04.2018.

Also, SMA2 accounts of 5 crore and above were reported on daily basis hitherto which has been modified and as per new guidelines, all the default accounts (SMA 0,1 and 2) have to be reported on weekly basis at the close of business on every Friday and the first such report was submitted on 23.02.2018.

In addition to this, the function of reporting of identified Red flagged / Fraud accounts of 50 crore and above under CRILC, is also handled by the department.


Banks Recovery Policy is oriented towards addressing the entire gamut of issues concerning NPA management and the bank has empowered the field functionaries in resolving any category of non performing accounts by bringing out a booklet on "Comprehensive Recovery Policy for Non Performing Assets" in the year 2013. The comprehensive recovery policy is being modified from time to time to be in line with the guidelines of RBI/GOI. Bank has introduced / extended special OTS schemes for considering proposals of farmers under direct finance to Agriculture & Allied activities including agricultural tractor loans, OTS Scheme for small NPA accounts under doubtful and loss assets category with book balance of 5,00,000/- and below, and OTS scheme for Micro and Small Enterprises borrowers. The Special OTS scheme for settling NPA education loans with original sanctioned limit of 4.00 lakh & below for the benefit of education loan borrowers was also renewed. In addition to the above, during the year, a special OTS scheme to improve recovery under DA-3 and Loss Assets with book balance of 5,00,000/- and below with a limited validity period was also renewed up to 31.03.2018.

Also, in line with the relief/ waiver schemes announced by some of the states like, Uttar Pradesh, Maharashtra, Kerala and Goa, your Bank also introduced

A special One Time Settlement Scheme for settlement of non performing crop and agricultural loans in the State of Uttar Pradesh and Maharashtra respectively.

A special Loan Repayment Support cum OTS Scheme for settlement of education loans in the State of Kerala.

A special One Time Settlement Scheme for settlement of non performing loans of mining related activity in the State of Goa.

Bank continued to reduce large number of smaller NPA accounts by settling the dues at "Synd Adalats" at all branches throughout the year by meet, talk and settle approach. Four Bruhat Synd Adalats were conducted at regional/cluster/branch level on 13.06.2017, 22.08.2017, 14.11.2017 & 14.02.2018 wherein 75,428 OTS cases were settled, by recovering a sum of 276.98 crore with an offer amount of 977.53 crore.

Bank was able to register a substantial recovery of 580.32 crore during the year 2017-18 by issuing notices and taking possession/auctioning of properties under SARFAESI Act 2002. The efforts at branch level were supplemented by empanelling more enforcement agencies and approved valuers.

Special intensive NPA recovery campaign named "Synd Vasuli Abhiyan-17-18" was held successfully from 1st August, 2017 to 31st March, 2018 for maximizing recovery.

Top NPAs from each region were identified for giving focused attention in the beginning of the year itself and many accounts were successfully resolved before March 2018. Stressed Tiny Asset Recovery Team (START) stationed at regional offices are being extensively utilized for assisting the branches having high concentration of special monitoring assets/non performing accounts of below 10.00 lakh. All high value NPA accounts are monitored personally by Managing Director and CEO /Executive Directors and vigorous follow up is made for resolving these accounts. On account of this, large number of NPA accounts could be resolved.

The Cash Recovery in existing NPA towards Principal is 2,202.17 crore and 630.55 crore in Prudentially written off accounts. The total cash recovery under NPA during Financial year was 3,330.75 crore.


Risk Management Architecture

A robust and comprehensive Risk Management Framework is established in the Bank. The Board of Directors assumes the overall responsibility for Risk Management in the bank. The Risk Management Committee (RMC) of the Board defines the risk appetite of the Bank. The RMC of the Board is ably assisted by Credit Risk Management Committee (CRMC), Asset Liability Management Committee (ALCO), and Operational Risk Management Committee (ORMC). The Bank is having a well defined Cyber Security Policy including an information Technology Governance Framework consisting of IT Strategy Committee, IT Steering Committee, Chief Information Officer (CIO), Information Security Management Committee (ISMC), a Chief Information Security Officer (CISO) assisted by various specialist teams, Business Continuity Teams and an IS Audit function to initiate, implement, monitor, maintain and improve the information security within the Bank and to make sure that IT is aligned and delivers value to the business. Bank has ISO/IEC 27001:2013 certification for CISO functions, core banking application, DBA, Network Operations, ATM, Internet Banking & Mobile Banking with various support functions.

Risk Management Department functioning at Corporate Office oversees the overall implementation of various risk management initiatives across the Bank with the assistance of Risk Management Cells (RMCs) at Zonal Offices and Regional Offices. The Bank has a well-documented policy and processes for management of credit, market and operational risks which are periodically reviewed, so as to adapt to the changing business and market environment.

Basel II Compliance

Bank has been complying with all Basel II norms. The Capital to Risk Weighted Assets Ratio (CRAR) is computed as per Pillar I requirements adhering to New Capital Adequacy Framework (NCAF) guidelines of RBI. Bank has adopted standardized approach for computing credit risk, basic indicator approach for computing operational risk and standardized duration approach for computing market risk.

Bank has a Board approved comprehensive Risk Appetite Framework, Internal Capital Adequacy Assessment Process (ICAAP) and Stress Test Policy which is reviewed periodically so as to be in line with the market realities, economic environment and regulatory requirement. Bank also prepares the annual capital plan to augment the capital requirements of the Bank which is reviewed at quarterly intervals or as per requirements. The Bank has a board approved Disclosure policy which is reviewed periodically by adhering to the guidelines issued by RBI and other regulatory bodies periodically.

Basel III Guidelines

Basel III guidelines have been introduced for improving the banking sectors ability to absorb shocks arising from financial and economic stress, supplementing the Risk-based capital requirement with a leverage ratio. Bank is calculating the Liquidity Coverage Ratio (LCR) in line with RBI guidelines and submitting the same to RBI on a monthly basis. The weighted average LCR is published on a quarterly basis. During the current year, Bank has taken various capital optimization measures for improving the quality of capital and to improve the CET 1 ratio, Tier 1 ratio & CRAR of the Bank. Bank has raised total capital funds of 4,940 crore during the financial year 2017-18 in various forms, namely a. Equity Capital infusion by Govt. of India for an amount of 2,839 crore. b. Equity Capital (including Share Premium) raised through

QIP of 1,150.80 crore on 15.12.2017. c. Basel III compliant AT 1 Bonds at coupon rate of 9.80% of 450 Crore on 25.07.2017. d. Basel III compliant Tier 2 Bonds at coupon rate of

8.00% of 500 Crore on 03.05.2017.

Bank is taking all measures to improve the CET1 ratio, Tier 1 ratio, CRAR and Leverage Ratio under Basel III so as to comply with the capital requirements as per the schedule prescribed by RBI while simultaneously achieving the expected growth in business. Bank is also publishing on quarterly basis the required information as per Basel III disclosures in the website since the quarter ending September 2013.

Asset Liability Management

The Asset Liability Management Committee consists of members of the top management and regularly meets to manage Liquidity Risk, Interest Rate Risk, Gaps/Mismatch Risk, Basis Risk, Re-pricing Risk, Forex Risk and Equity Price Risk. It includes product pricing for deposits as well as advances and the desired maturity profile of assets and liabilities.

The Bank has a well-documented contingency liquidity funding plan for managing any contingency. The Bank undertakes stress testing on quarterly basis and assesses the impact on liquidity and interest income of the bank. Bank monitors the Basel-III "Liquidity Coverage Ratio".

Un hedged Foreign Currency Exposure:

The Bank has a policy with regard to capital and provisioning requirements for exposure to entities with Un hedged Foreign Currency Exposure (UFCE) which is based on the guidelines issued by RBI. The position of last 2 years is as under.

(Amount in Crs)


FY 2017-18

FY 2016-17

Opening Balance of UFCE provision



Add: incremental/reversal of provision during the current year



Closing Balance of UFCE provision




Bank has accorded importance to treasury functions and efficient management of Integrated Treasury Operations. Treasury and International Banking Department (T&IBD) has two wings viz, (a) Foreign Exchange Treasury and (b) Domestic Treasury. Besides, T&IBD is also functioning as monitoring and controlling office for the overseas operations of the Bank.

Forex Treasury

Treasury and International Banking Dept (T&IBD) is the only ‘A category office in the Bank which maintains foreign exchange position, Nostro and Vostro Accounts. T&IBD also monitors foreign exchange business, correspondent banking relationship and overseas business operations of London branch.

The Banks centralized dealing room at T& IBD, Mumbai handles the foreign exchange dealing operation of the Bank. The Bank is having 116 designated branches (Category "B") to handle all types of foreign exchange transactions and 414 nominated branches to handle the FCNR business of the Bank. NRE/NRO deposits are accepted at all the 4012 domestic branches of the Bank. The Bank also has one overseas branch at United Kingdom. The Bank is a member of Clearing Corporation of India Ltd. (CCIL), for settlement of inter-bank forex deals in USD/ INR segment. Further, the Bank also settles cross-currency deals through CCIL with continuous linked settlement (CLS) Bank.

The Bank is a trading-cum-clearing member on three exchanges, i.e., MCX-SX, NSE and BSE for undertaking proprietary based position in currency futures.

The Bank is offering only plain vanilla derivatives and no complex derivative products are offered by the Bank. There is no litigation against the Bank in respect of existing derivative transactions. The Bank has implemented Integrated Treasury Management Software (ITMS) which has essential features like integration of domestic and forex treasury, efficient settlement operations for rupee and foreign exchange treasury and timely Nostro reconciliation. The new system also provides seamless interactions with branches for their customer transactions.

The total forex turnover of the Bank was 10,91,020 crore for the current financial year 2017-18, as compared to 11,32,142 crore for the previous financial year. The inter-Bank turnover was 10,23,209 crore for the current financial year 2017-18 as compared to 10,78,832 crore for the previous financial year.

Export Finance

Your Bank has efficient Export Finance services to improve cash flows of exporter with wide network of correspondent relationships and competitive rates for remittances. Export Finance was made in Indian Rupees as well as in foreign currency. Rupee export credit was offered at very competitive interest rates within the ceiling prescribed by RBI. The Interest Equalization Scheme for Exporters, as designed by Govt of India, has been made available by the Bank to its customers in certain specified sectors, thus passing on the benefits of concessional interest. Bank also conducted exports/imports meet at various centers to have direct interaction with the clients.

Exchange Companies

The Bank is managing one Exchange House M/s Musandam Exchange Company Ruwi, an exchange company at Ruwi in Sultanate of Oman. The Bank is also having Rupee Drawing Arrangements (RDA) with other 7 Exchange Houses for improved and cost-effective funds transfer by Indian diaspora to India from Gulf countries, apart from RDA with 06 foreign banks.

Centralised NRI Cell

T&IBD has opened the centralized NRI cell w.e.f. 26th Dec 2012 to enable prompt opening of NRE accounts canvassed by Exchange House managed by Bank, namely, Musandam Exchange Company. With a view to increasing the NRE Portfolio of the Bank, T&IBD is opening the account on behalf of the branches and dispatching the NRE welcome kit containing cheque book, ATM card and Internet IDs etc. directly to the Exchange House for delivery to the customer.

Multi – Currency Co-Branded Forex Pre Paid Card

The Multi-Currency Co-Branded forex pre-paid card in association with Thomas Cook India Ltd and Master Card was launched on 23rd June, 2017. This borderless Prepaid Card has the option of loading eight currencies on a single card–US Dollars, British Pounds, Euro, Australian Dollars, Canadian Dollars, Swiss Francs, Singapore Dollars and Japanese Yen. There are 6 Foreign Exchange Processing Centres and 57 branches designated to issue this card.

Special Arrangements with NOSTRO Bank

In order to mitigate the hardship faced by the customer in collection of US Dollar instruments through US based correspondent Banks, T&IBD has established special arrangements for speedy collection of US Dollar cheques/ draft through USD Nostro correspondent for cheques drawn in USA.

Domestic Treasury

Domestic trading desk supported by state- of- art-technology which is mapped with the trading platforms provided by CCIL like CROMS, CBLO, NDS-OM, NDS-Call etc are interfaced with ITMS, provides the seamless transactions movements. The major portfolio of the treasury comprises of SLR investments and is in the form of bonds of central Government securities & state Government securities.

The bank has also strengthened the non SLR investments by investing in qualitative and rated corporate bonds and debentures, commercial paper, CDs, etc., resulting in improved yields on investment portfolio. The bank has also earned from arbitrage deals, by effectively making use of windows like CBLO, Repo & Call market with that of overnight FX market. The bank has managed funds very efficiently by these money market channels by continuously monitoring the fund flow and the liquidity position and undertaking lending and borrowing transactions.

During the year, the Banks treasury has raised Capital Funds by way of Subordinate Tier II Bond (500 Cr), Additional Tier I Bond (450 Cr) and Qualified Institutional Placement (QIP) amounting to 1,150.80 Cr after complying with all the due procedures. The Government has infused capital through equity to the tune of 2,839 Cr. The bank has invested in Recapitalization Bond for the same amount. During the year, the Bank has set up an equity research department and has started trading in equity

The domestic investments of the bank were at 79,204.17 crore as on 31.03.2018 as against 64,766.41 crore for previous year. Total income from investment portfolio (excluding dividend & trading profits) was 5,410.37 crore in the year 2017-18 as against 5,428.05 crore in the year 2016-17. Banks investment in SLR securities amounted to 70,349.94 crore which formed 88.82 per cent of Banks total domestic treasury investments as on 31.03.2018. Trading profits for the year 2017-18 was 926.48 crore as against 1,728.69 crore during the FY 2016-17.

Modified duration (indicator of change in prices/values with change in 1 per cent Interest Rate) for Banks total investment portfolio stood at 4.43 per cent for 2017-18 as against of 4.30 per cent for year 2016-17.

Overseas Operation

Banks overseas presence is in United Kingdom with a Branch at London. The Branch is active in wholesale banking operations serving Indian Corporates in United Kingdom, money market operations, investments and treasury operations. The Branch focuses on syndications and ECBs, besides bilateral loans for Indian Corporates having global presence. The branch has efficient risk-management system which is approved by regulatory authority of United Kingdom. The total business (Deposits and Advances) of the branch stands at Great Britain Pound (GBP) 7968.770 million (73,533.82 crore) as at 31st March, 2018 as against GBP 7627.164 million (61,705.66 crore) as at 31st March, 2017.


Management Information System (MIS) department provides information on business parameters to the top management, administrative offices and branches aiding in data analysis and decision making. The department also provides reports to meet the Regulatory and Statutory compliances. The data quality, accuracy, consistency and timeliness is ensured by the department.

Apart from generating the regular and adhoc reports, the department is also providing data for various requirements such as: SPARC for RBI, CAM and ALM-FTP for Risk Management dept, CRILC /SMA for Credit Monitoring

& SMA Dept, IFRS data for Central Accounts Dept, FATCA data for International Division, Mumbai, eTHIC data for HO:Inspection, Project Ananya for Product Innovation & BPR Dept, Data for Credit Bureau such as CIBIL, Data for FIBAC & for various campaigns launched by the Bank.

The department is in the process of revamping the Enterprise Data Warehousing & Business Intelligence Solution by redefining the scope of the work, additional reports development and integration of various new sources systems of the Bank for generation of required data, reports, and analytics and dash boards. EDWBI is currently being leveraged in the functions like Anti Money Laundering (AML), Cash Transaction Report (CTR) and Analytical Customer Relationship Management (ACRM). The Department has enabled menu based reports generation option for various functional departments to self-generate some of the routine reports at their end for the required periods.

Data Analytics

The Department has initiated Data Analytics activities by forming a team and the analytical use cases relevant to the bank are being identified by the team. The department has enabled Dashboards on daily position of key business parameters for Branches/ROs/ZOs for review of performance and analyzing the gaps in achieving targets.


The Bank continues to spread its wings with a network of 4012 branches, 8 zonal offices, 60 regional offices, spread across India and one branch at London. All branches of the bank are connected with Centralized Banking Solutions (CBS).


Bank holds the best infrastructure with state-of-the-art data center at Mumbai and Disaster Recovery Site at Bangalore located in different seismic zones and also a near-site at Mumbai.

Bank owns new enterprise class servers and storage systems bringing significant improvement in performance, reducing the Day End Batch processing window and with capacity to create multiple backup copies of CBS database for MIS and reporting.

CBS for London Branch

Your overseas branch at London has been brought under overseas CBS with the latest software application (Finnacle) having capabilities to support customer focused banking, product configuration, multi-channel capability etc.

New Initiatives

Bank has implemented the following IT initiatives during the year 2017-18.

Developed an in-house Aadhaar Re-verification portal linked to Banks website.

Monthly E-statement facility for loan and CASA customers. Registered customers can now receive their monthly CASA/Loan account statements to their email ID in pdf format.

Lead Generation System through website: Prospective customers can now apply for retail and MSME loans through Banks website.

Acceptance of online requests for Corrective Action Plan from stressed MSE customers through Banks website.

Customer Protection Limiting Liability:

In terms of RBI guidelines, customer is to be given option to respond transaction alert, if the transaction is found to be suspicious by the customer. Facility to reply to transaction alert in respect of debit card, internet banking, mobile banking and UPI transactions is provided. Customers are empowered to reply and block debit card, IB channel, MB channel or UPI based on the transaction alert reply submitted by the customer. Blocking of channel/card is automated and for activation of the channel or debit card, customer is required to visit branch.

Green PIN Implementation through ATM

As part of providing enhanced customer service, your Bank has implemented "Green PIN" Project, which provides an option to customers to generate new / reset existing ATM Debit Card PIN, through ATM at any point of time. Further, with this facility, customers can also generate ATM Debit Card PIN instantly, if their mobile number is linked to the account.

UPI application for the iOS Platform of Mobile Phones Bank has launched the UPI application for the iOS Platform of Mobile Phones. Customers can use Synd UPI on both android and iPhones platforms and can send and collect money. Synd UPI uses Virtual Payment Address which is an abstract form to represent account details. The account details remain confidential. By adding accounts of different Banks, Customers can manage all accounts in a single application. Synd UPI is already available for android platform of mobile phones.

Implementation of Dual fingerprint based authentication for SHG Transactions

This facility is made available for assisting Self Help Group customers to withdraw or deposit through Micro ATM / BC Channel of your Bank.

Bilingual Screens in Internet Banking

Customer can select the language of their choice either English or Hindi while doing their Internet Banking.

SyndBharat QR

Bank has launched a new mobile application called Synd Bharat QR so as to encourage cashless transactions and to promote Digital India initiative, the Government of India has launched Bharat QR Code to simplify digital transactions for merchants and for the customers. It eliminates the need of a POS machine and supports Rupay, MasterCard and VISA debit card payments.

Govt. Sponsored Initiatives GST Software

Bank has installed GST Software to facilitate for Online & Offline Collection of Goods & Service Tax (GST).

Software for Electronic Toll Collection (ETC)

Software is provided in Middleware -NETC issuer Platform.

Bharat Bill Payment System Solution (BBPS)

Application provided to support Bharat Bill Payment

System Solution. This is an integrated bill payment system in India offering interoperable and accessible bill payment service to customers through a network of agents, enabling multiple payment modes and providing instant confirmation of payment.

Solution for APY accounts

Bank has provided a new solution for the Subscribers to open APY accounts through NSDL portal.

Software for Collection of Registration and Stamp Duty Fees

Bank has provided a software for Online & Offline collection of Registration and Stamp Duty Fees in Tamil Nadu state. (TNIGRS)

Cyber Security in Your Bank:

Considering the number, frequency and impact of cyber incidents and attacks with increased manifold during the recent past, in financial sectors, Bank has put in place a robust cyber security resilience mechanism. As per the guidelines issued by RBI on cyber security framework, Bank has ensured that adequate cyber security preparedness is put in place and reviewed on a continuous basis.

Bank has put in place an effective cyber-Security policy elucidating the strategy containing an appropriate approach to combat cyber threats which is duly approved by our Board. In addition to that, Bank has developed its own Cyber Crisis Management Plan (CCMP) for countering Cyber Attacks and Cyber Terrorism with a coordinated, multi-disciplinary and broad based approach. To recover from malicious cyber related incidents impacting critical business functions immediate remedial actions are taken to mitigate and recover from the attacks. Bank effectively participated in the cyber drill conducted by IDRBT and table top exercise by RBI.

The field of cyber security is technology intensive and new vulnerabilities emerge with progress in technology giving rise to new types of incidents. Hence to combat those vulnerabilities Bank has implemented Cyber security projects like Active Directory, Application Whitelisting, Regular Anti-virus and Patch update, Data Leakage Prevention at network and end point level, Privilege Identity Management, Anti- Distributed Denial of service (DDoS), ATM Fraud Risk Management, Red Team formation, Cyber Forensic Services etc., The projects like Network Access Control (NAC), Network Behavioral Anomaly Detection (NBAD), Advanced Persistent threat (APT), Packet capture are in implementation phase. Bank has setup its own Security Operating Centre (SOC).


At present there are 48 currency chests catering to the cash needs of branches across the country.

All the cash vans attached to our currency chest and cash pooling centers are GPRS enabled.

Clean Note Policy as per RBI directions is implemented at all the currency chests and branches. Under RBI clean note policy, all the currency chests and the select branches are provided with heavy duty Note Sorting Machines (NSMs).

Bank has provided Note Counting and Note Authenticating Machines in all the remaining branches.

Cheque Truncation System (CTS)

CTS is mandatory from 01.04.2013. In this regard, Bank has ensured that,

– CTS-2010 standard compliant cheque books and DDs have been supplied to all branches.

– Specific guidelines issued to the branches regarding modus operandi of dealing with old and new cheque books and also to exchange new cheque books wherever eligible.

CTS clearing activities are grid based. This is implemented throughout the country in a phased manner. There are

3 CTS grids covering throughout the country. They are Northern Grid- Delhi, Western Grid- Mumbai and Southern Grid- Chennai.

NACH platform of NPCI

Bank has commenced operations of Legacy Electronic Clearing Service (ECS) Mandates in manual mode to the NACH platform of NPCI.

Depositor Education Awareness Fund (DEAF)

Depositor Education Awareness Fund Scheme launched by Reserve Bank of India has been implemented since June 2014.

The Dormant deposits as per the specified norms are transferred to RBI on a monthly basis and whenever the customers approach the branches, they are refunded immediately and the same is claimed from RBI on a monthly basis.

Central Pension Processing Centre (CPPC)

Central Pension Processing Centre (CPPC) is operationalized w.e.f. 01.02.2012 for central pensions. Civil, Defence, Telecom and Postal pensions and migration of Railway pensions is in progress which will complete the process of centralized payment of all central Government pensions.

The Pensioners coverage during the year is increased by 29 per cent over the previous year.

During the year fourth and final Installment of One Rank One Pension (OROP) Arrears has been paid to Defence pensioners. Aadhar seeding is completed for more than 98 per cent of pensioners.

Pension slips and SMS alert on pension payment sent to all registered pensioners. Pensioners Grievance redressal unit is functioning in CPPC and all the grievances of pensioners are promptly resolved.

Government Transactions Cell

Bank is an accredited Bank for Ministry of Road Transports & Highways & Ministry of Shipping.

Bank is authorized for conducting various bonds issued by Government of India (GOI) such as 7.75 per cent savings bonds and sovereign gold bonds schemes.

To facilitate Online & Offline Collection of Goods & Service Tax (GST), Bank has installed GST Software.

Bank has implemented Public Financial Management System (PFMS) as per the financial reform initiative undertaken by Ministry of Finance (MoF), Govt. of India (GoI) to monitor the programme in the social sector and track the disbursement of Government grant funds. GOI decided to undertake National rollout of PFMS to link all financial networks of Central, State Governments and the agencies of State Governments under this platform.

Bank has implemented the Non- Tax Receipt Portal (NTRP) for collection of Non- Tax revenue. It is also known as Bharatkosh.

Bank has obtained authorization for implementation of small savings schemes such as Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), Sukanya

Samrudhi Scheme (SSS) & Kisan Vikas Patra (KVP) in all branches which shall be implemented shortly with a dedicated online software.

Electronic Payments and Settlements Office (EPSO)

Bank has established a centralized office viz Electronic Payments and Settlements Office (EPSO) to cater to the back-end operations related to electronic payments like NEFT, RTGS, IMPS, UPI, NACH, NETC (National Electronic Toll Collection), BBPS (Bharat Bill Payment System), MMS (Mandate Management System) and also to resolve related customer grievances.

There is an increase of 130 per cent in the Net income earned from the above activity (17.70 crore) as on 31-03-2018 over the previous year (7.70 crore).

Image Building

Bank has continued the process of branch transformation under project Ananya, which was initiated in the previous financial year, for improving the ambience of branches for ensuring maximum comfort to the customers like providing larger customer space and air conditioning. For maintaining distinct identity, uniform colour scheme has been followed. The ambience has been improved on par with peer banks to attract new customers and to garner new business. Bank also opened e-Lounge for the benefit of tech-savvy customers and to extend 24 X 7 Digital Banking to customers through ATM, Bunch Note Acceptor and Pass Book Kiosk under one roof for better customer service, besides attracting new generation customers to our fold.


As part of Swachh Bharath Abhiyan, Bank has taken steps to maintain hygiene at all its branches/offices premises by providing good sanitation facilities to its customers and staff in addition to keeping the premises neat and clean for ensuring better ambience. Going a step further in this direction, Bank has also initiated periodic Hygiene and Ambience Audit in all branches/ offices.

Bank conducted the Swachhta Pakhwada from 16th to 31st January 2018 across all offices/branches creating awareness regarding importance of cleanliness among staff members and customers. On the occasion of 69th Republic Day, MD & CEO and ED along with other staff members from Corporate Office, Zonal/Regional Offices I & II Bengaluru undertook the cleaning activity in the vicinity of Corporate Office and staff quarters at Nandini Layout, Bengaluru. Similarly, ED along with staff members from HO, ZO Manipal, local branches and SIBM participated in the Swachhata Abhiyan cleaning the surroundings of Head Office and Bank quarters.


Human Resources Management Department (HRMD) of the Bank is playing vital role in manpower planning, recruitment, promotions, performance appraisal, employee development/capacity building through in-house and external training, succession planning, etc. Bank is constantly focusing on HR functions by developing and retaining the workforce to meet the future HR challenges in the Banking Sector. The Bank is geared up to achieve the same through pragmatic interventions in training and development and creating career growth opportunities.

Bank is giving more thrust to succession planning through identification of necessary competencies and then works to assess, develop and retain a talent pool of employees, in order to ensure continuity of leadership in all critical areas. Investment in employees training and development has enabled the Bank to prepare the staff members to handle new HR challenges and make them ‘future ready. The Human Capital of the Bank as on 31.03.2018 is as under:










Sub staff










The main objective of recruitment planning is to have required staff strength based on the skill inventory, superannuation, attrition rates, branch expansion plan of the Bank, career plan, succession planning, etc. The recruitment techniques include lateral recruitment of specialist officers and recruitment of probationary officers and clerks through the common recruitment process conducted by IBPS. The details of recruitment made by the bank during the year 2017-2018 up to 31.03.2018 is shown below:


of candidates joined

1 DGM(Security)


2 Manager (Law)


3 Manager (CA)


5 Manager (Security)


6 Technical Officer (Civil)


7 Technical Officer (Electrical)


8 Probationary officers


9 I.T.Officers


10 Asst.Manager (R D)


11 Marketing Officers


12 Probationary officers through PGDBF


13 Probationary Clerks




Recruitment of officers in JMGS-I after undergoing one year PG Diploma in banking & finance (PGDBF)

The Bank, with the objective of "first day, first hour productive" has introduced strategic talent pipeline building programme in association with Manipal Global Education Services Pvt Ltd (MaGE) Bangalore and NITTE Institute of Banking and Finance Noida (NEIPL) and Mangalore. Both the institutes will train candidates for the period of 12 months consisting of 9 months academic input and 3 months internship in the branch. On successful completion of 12 months training, these trainees will be absorbed as probationary officers of the Bank.

Promotions and Placement

The Bank has placed robust promotion and placement policy to cope with superannuation in various grades/ scales keeping in view of the guidelines received from Government of India from time to time. The Promotion policy of the Bank acts as a motivating factor for the officers to perform and also to take care of succession planning. Promotion within officer cadre is ensured every year to avoid any stagnation. Periodical promotional processes and a number of welfare measures are also introduced to retain the quality staff.

Talent Grooming & Training

The Bank continued to invest in developing employees competence. Syndicate Institute of Bank Management (SIBM) and 7 training centers spread across the country are catering to the training needs of the employees. Considering the large scale retirements and developing skills, the Bank has undertaken process of augmenting its training for skill building, which will groom the officers/ executives in various specialized activities as well as motivate them to assume role of Branch/Regional Heads. For the identified executives handling sensitive regions and branches, Bank has arranged special executive development programmes, consisting of mainly on soft skills. During the year 2017-18, the training system has conducted 493 internal training programmes covering 7,921 Officers and 6,717 workmen employees. 380 Synd Samarth locational training programmes covering 10,106 officers were conducted under Project Ananya, branch transformation. In addition, 971 officers/executives were deputed to external training programmes conducted by training institutes of repute in India on finer leadership skills. Further 8 executives/officers were also deputed to overseas training programmes.

Bank has also taken various steps for introduction of E-learning system. Bank is engaging the retired executives/ officers for assisting in development of E-learning modules.


Retention of skilled and well groomed manpower is being ensured by addressing their diverse needs/grievances, developing a positive inter se relationship, providing challenging task, involving them in decision making process, offering periodical training, conducting periodical promotion process and by devising innovative & creative staff welfare schemes.

Competency mapping

Bank has conducted competency mapping and skill assessment exercise in association with National Institute of Bank Management (NIBM), Pune for 38 executives in Scale-V and 159 executives in Scale-IV who are having more than 3 years of residual service during the FY 2017-18. The concerned executives have been posted to critical positions as a part of succession planning.

Identification of key departments and key persons

As a part of succession plan, Bank has identified Treasury

& International Banking Department, Risk Management Department, Credit Department, Audit & Tax Cell, Department of Information Technology, Human Resources Department, NPA Management & Legal Department and Investor Relations Centre as key departments and the executives who are second in command and having requisite competency and skill have been identified as key person of the respective departments. Further, before relief of the existing key person on promotion/ transfer/ superannuation etc. from the respective vertical, the new incumbent having requisite qualification, competency and skill will be identified internally/externally (through lateral recruitment) and posted well in advance for necessary knowledge transfer and to have handholding in the respective department/vertical so as to ensure proper succession planning.

Capacity building

Bank has introduced mandatory certification for the staff mapping of following specialized areas a. Treasury operations (dealers, mid office operations) b. Risk Management (credit risk, market risk, operational risk, enterprise wide risk, information security, liquidity risk) c. Accounting (preparation of financial results, audit function) d. Credit Management (credit appraisal, rating, monitoring, credit administration) e. Foreign exchange operations

Systemic Improvements and IT initiatives

Annual Performance Appraisal Report (APAR): Implemented revised APAR with quarterly assessment w.e.f. December

2017 quarter. Re-designed APAR system to have more measurable and objective scoring system. APAR system aims at and includes, high proportion of budgetary and measurable KRAs for all officers, Automatic scoring for objective parameters, Weightage based on branch type, etc.

Capturing APAR details: Department has developed portal to capture the scoring on-line and successfully implemented the same in tune with the re-designed APAR system.

Bank has developed and implemented software for centralised tax deduction at source, capturing Annual Property Returns online, Fitment of Basic Pay on promotion up to Scale-III, etc.

Succession planning

Four pillars for succession planning are formed, ie.,(a) Shortlisting of candidates and setting up talent committee, (b) Indentifying high potential candidates (c) Creating individual development plan (d) Create succession plan for critical roles.

Further, Bank has taken following steps for smooth succession in various key areas:

Conducted competency mapping exercise in association with NIBM, Pune for 38 AGMs and 159 CMs.

Initiated Capacity Building exercise as a part of succession planning/filling up skill gap, by way of customized trainings, mentoring, e-learning, focused attention for achievement and motivation, certification courses, etc.

Introduction of sales focused roles like sales officer, CRM etc.

Lateral recruitment of specialist officers.

Reservation to SC/ST/OBC/PWD

The Bank follows the reservation policy for SCs, STs, OBCs and PWDs as prescribed by Government of India and State Governments from time to time and has been extending applicable reservations/concessions to SC/ST/ OBC/PWD employees in recruitment/promotions strictly as per the Government of India guidelines. A separate SC/ ST Cell and OBC Cell are functioning at Head Office to redress the grievances of SC/ST/OBC employees working in the Bank and are currently headed by General Managers designated as chief liaison officers. Meetings with the representatives of the SC/ST/OBC welfare associations are held at regular intervals to redress their grievances. The chief liaison officer will participate in meetings with the members /officials of the National Commission for SC/ ST during their visits to our Regional Offices. The progress made in the implementation of the reservation policy is placed before the Board once in a Year. The post based reservation roster is displayed on the website of the bank in compliance to the directions of the Government.


HRMS is implemented in the Bank. It is a centralized HRMS solution for handling the functions of different divisions of personnel department, Zonal offices, Regional offices, branches and other administrative offices covering all employees/pensioners of the Bank. Annual performance appraisal report, attendance, leave modules and few functionalities of salary, employee record management, personnel administration, transfer modules have been made live. Remaining features of these modules and other modules like manpower planning, terminal benefits, training and development, recruitment etc., are in different stages of implementation.


The Bank has been displaying a strong and abiding commitment to encourage the greater use of Hindi in various ways not only because it is the policy of the Government of India but also as an ideal and powerful medium of inclusive banking. With an object of timely implementation of important guidelines pertaining to Official Language issued by the Government of India, various types of initiatives have been taken up by your Bank for providing assistance to the employees working in branches/offices in the implementation of official language duly issuing internal annual O L implementation action plan.

The Bank has made noteworthy progress under the implementation of Official Language and won prizes at various levels during the year. Your bank was awarded with First prize "Rajbhasha Kirti Puraskar" for 2016-17 by the Ministry of Home Affairs, Dept. of Official Language, Government of India, for its Hindi House Journal "Jagriti" among all the Nationalised Banks/FIs situated in ‘C region. Sri Melwyn Rego, MD & CEO received the award from Honble President of India Sri Ramnath Kovind on 14.09.2017 at Vigyan Bhavan, New Delhi.

Your Banks In-house Journal JAGRITI was awarded as Second Best In-house Magazine for the F.Y. 2016-17 by Reserve Bank of India.

Town Official Language Implementation Committee (TOLIC) Karwar and TOLIC Faridabad (both conveners of your bank) have won the Second prize and third prize respectively for best TOLIC among the South West region and North region respectively from Regional Implementation Office, Dept. of Official Language, Ministry of Home Affairs, Government of India for the year 2016-17. Some of our Regional Offices and staff members have received Rajbhasha Shields/Awards from respective Town Official Language Implementation Committees. Banks Internal Award Schemes like Cash Incentive Schemes for ‘Excellent Performance in use of Hindi and excellent performance in use of Hindi on Computers for Region wise individual employees and also bank level/ branch level/department level shield competitions/essay competitions are in vogue. Attractive Cash Incentives are being given to the writers of Hindi articles published in our house magazines i.e. Giant & Jagriti.

Bank has notified 3,434 branches/offices under Rule 10(4) of O. L. Rule, 1976 to ensure maximum usage of Hindi. Ensured online submission of quarterly Hindi progress reports of various Regional Offices to the concerned regional implementation offices of MHA. Functional Hindi workshops, translation trainings, Hindi Coordinator/ executive OL seminars, Hindi competitions for school children/staff members in connection with ‘Vigilance Awareness Week, Independence Day/Republic Day/ Teachers Day and ‘Rajbhasha Prayog-Apasi Samvad-Sarthak Disha programmes of DFS-MOF were conducted by various regional offices in addition to attending Govt. guidelines related to OL implementation in day to day official work. In addition to the above ‘Let us Speak Regional Language guidance programmes were conducted.

Bank has launched Mobile Banking application in Hindi in addition to updating Hindi translation of revamped website. Bank is the convenor of Town Official Language Implementation Committees at Ananthapur, Bijapur, Karwar,Kannur,Meerut,Ghaziabad,Faridabad,Ongoleand Udupi. Official Language Implementation Committees were constituted in all the branches/offices for the effective implementation of Official Language.

The Third Sub Committee of the Committee of Parliament on Official Language inspected our Nainital Branch and Kavaratii branch and Regional Office Delhi I respectively on 08.05.2017, 14.10.2017 & 17.02.2018 and The Drafting & Evidence Sub Committee of the Committee of Parliament on Official Language had discussion with our R.O. Faridabad on 06.09.2017.

The officials of Department of Financial Services, MOF had inspected our Head Office, Corporate Office, RO: Delhi I, RO Meerut, TC Delhi, RO Vijayawada and reviewed OL Implementation activities and appreciated the efforts of the Bank in the area of Official Language Implementation.

Special activities conducted during the period: i. Bank conducted All India Hindi Essay Competition for Nationalised Banks/FIs/RRBs. ii. Bank conducted Hindi Day at London Branch and Island branches in addition to Regional Offices. iii. Bank has released a book titled "Various important initiatives of the Government in Socio-Economic Development" (collection of articles won first prize in the seminar conducted in January 2017).

v. i Bank has released a book titled –IIwhich includes various languages enshrined in the 8th Schedule of the Constitution of India. v. Bank has conducted National Level Seminar in Hindi on "Contribution of Priority Sector in Social Development" for Nationalized Banks/FIs/RRBs at SIBM Manipal on 06th March 2018.

Bank has paid special attention on providing information related to financial inclusion matters, schemes/ products related literature / pamphlets / advertisements / display material etc. in Hindi and Regional languages in addition to English. Bank is committed in promoting Hindi and Regional Languages by introducing various innovative models to facilitate its proud customers.


Bank has been constantly striving hard to improve customer service. Banks customer centric approach acts as a key component in shaping future business potential and also in acquiring, retaining and growing the customer base.

The Bank has policies duly approved by the Board on customer service, deposits, customer grievance redressal, cheque collection, compensation policy etc. These are displayed on the Banks website for the convenience of the customers, besides being available at each branch of the Bank for the use of the customers.

Branches are celebrating branch opening / foundation day as customer meet day. Meeting would be attended by executives from HO/CO/RO, local Government officials and customers of that branch. During the meeting customer are educated about products and services offered by the bank and customer feedback would be obtained. Matters relating to customer service and customer complaints are discussed in the periodical meeting held at branches/regional offices where apart from customers/ senior citizens are also invited.

The grievances redressal policy of the Bank is meant for prompt redressal of customer complaints and grievances through well defined roles & responsibilities.

The Customer Service Committee (CSC) meeting was reconstituted at ROs with head of the Region as Chairman, Executives of ROs, Officers and Workmen Association / Union representatives and a retired employee and other Customers.

Customer Service Initiatives taken during 2017-18

Bank has ensured display of the comprehensive notice board as per BCSBI guidelines in all the branches. With a view to improving the customer service in the branches and sensitize the staff, policy on ‘customer service has been adopted based on the following basic principles viz., courtesy, communication, efficiency & timeliness, general management of the branches, knowledge, etc. The Bank is a member of the Banking Codes and Standards Board of India (BCSBI) and committed to implement the provisions of Code of Banks Commitment to Customers and Code of Banks Commitment to MSE Customers in letter and spirit. Code of Banks commitment to customers January 2018-BCSBI has been circulated to all branches/offices and a copy of the same is made available for the customers. It has also been uploaded and displayed in our website and in-house application.

In its continued efforts to spread awareness and to educate/sensitize customers about provisions of BCSBI Codes, Bank has also actively participated in the "customer meets" organized by BCSBI at various regions and branch officials and customers have interacted with BCSBI officials.

BCSBI has imparted training to few Officers of the Bank to enable them to conduct Customers Awareness Meet before 31/12/2018.

Executives during their visit to branches interact with customers and review matters relating to customer service/complaints redressal and implementation of BCSBI codes provisions. News letters from BCSBI is made available/updated in website quarterly.

Standing committee on customer service meet at quarterly intervals at corporate office and review the customer service related matters/ complaints etc. of the Bank as a whole the customer service related matters are also deliberated.

Introduction of new savings bank account- "SYND SUPREME" and Multi Currency Co-branded Forex prepaid card with Thomas Cook India Limited.

Introduction of levy of penal charges for non-maintenance of Minimum Average Balances in Savings Bank accounts which is directly proportionate to the extent of short fall observed.

Introduction of Door Step Banking facility for Senior Citizens of more than 70 years of age and Differently Abled or Infirm Persons (having medically certified chronic illness or disability) including those who are Visually Impaired.

Banking Facility/Service for Senior Citizens, Differently abled and Visually Impaired Persons by providing separate dedicated counters in the branches has been introduced.

Online Grievance Redressal System (OGRS)

Bank has made online grievance redressal system live from 18.08.2015. The online grievance system provides for online registration of grievance through banks website. The online grievance system provides access to the customers for recording the complaint, compliant status tracking and receiving response from the bank. The system is running satisfactorily.

Internal Ombudsman

Bank had appointed internal ombudsman w.e.f 01.08.2015. The banks internal ombudsman examines the cases where the customers claim is either rejected or partially accepted.


As a sincere corporate citizen, your Bank has been fulfilling its social responsibilities by actively participating in activities aimed at socio/economic transformation of various facets of society and upliftment of the downtrodden. The Bank is undertaking various CSR activities for-(a) Community development activities in the areas of operation of the Bank.

(b) Mitigating natural calamities,

(c) Development of health care facilities for poorer sections of the society, (d) Development of educational facilities at institutions, not dependent on capital fees, (e) Promotion of art and culture, (f) Activities to encourage research and development in fields related to Banking, (g) "Swachh Bharat Abhiyaan": A national movement, launched by Government of India to achieve total sanitation and cleanliness.

(h) "Swachh Vidyalaya Mission": launched by Government of India with a mission to to provide toilets in different schools across the country.

(i) Promoting sports and recognizing the performance of outstanding sportspersons, (j) Upkeep of water bodies, (k) Creation of public financial distribution infrastructure using Aadhaar Interoperable Micro ATMs under rural development project.

(l) Promoting gender equality, empowering women etc. (m) Any other worthy social causes.

Bank has sanctioned total of 1.40 crore under corporate social responsibility (CSR) in FY 2017-18. Some of the major contributions under corporate social responsibility (CSR) during the financial year 2017-18 are as under: Donation to Blind Organisation for providing education curriculum to Blind students.

Donated school bags to needy students on the occasion of Dr. Ambedkar Jayathi.

Donated water cooler at civil hospital, Chandigarh. Donated for cleaning roads and drainage in Karaikal Municipality, falling under Regional Office Madurai. Financial assistance to meritorious students, Hubballi & women Cricketer.

Donated for free nutrition supplements to children with cancer.

Donation of cargo rickshaw to Grama Panchayat, Hejamady for disposal of waste under Swachch Bharat Abhiyan.

Donated for organizing free cancer check-up camp for women, at Ludhiana.

Donated battery operated garbage vehicle to Hosur Municipality, RO Salem.

Donated toilet chairs to disabled & senior citizens under Swachh Bharat Abhiyan, RO Moradabad. Bank has adopted 26 villages for undertaking development work under Synd Samagra Gram Vikas Yojana (SSGVY) in FY 2015-16 and is still continuing the development activities in these adopted villages.


Improving & developing new product is ongoing task which your Bank is dexterously following keeping in view of the changing customer requirements, technological innovation and market research. During the year, Bank has come up with several new products for the benefits of its customers. Following are the new products introduced by the Bank.

On liability side

(a) Synd Supreme: Bank has introduced a new product Synd Supreme. It is a new Savings Bank product designed to attract customers maintaining Monthly Average Balance of 1.00 lakh and above. The product has got inbuilt features like Free Accidental Insurance Cover up to 10 lakhs, Free Remittance Facilities (RTGS/NEFT), Free Issuance of Debit/Credit cards, Mobile Banking, Internet Banking to attract new customers as well as to provide facilities to existing customers who maintain Monthly Average Balance (MAB) of 1 lakh & above. Bank has opened 3,077 accounts involving a deposit of 193 crore under the new product as on 31.03.2018.

(b) Multi–Currency Co-branded Forex pre-paid Card:

Bank has introduced Multi- Currency Co branded Forex Prepaid Cards in association with Thomas Cook India Ltd. The card enables travelers with the option of loading eight currencies on a single card-US Dollars, British Pounds, Euro, Australian Dollars, Canadian Dollars, Swiss Francs, Singapore Dollars, and Japanese Yen. The prepaid card is accepted at over 35.2 million merchant establishments and also gives card holders an option to withdraw cash from ATM located overseas.


Marketing Vertical

Bank has a separate marketing vertical at Corporate Office, Zonal Offices and Regional Offices to accelerate marketing efforts to augment income from below mentioned activities:

1. Asset & Liabilities Products.

2. Fee based income products like lockers & third party products like insurance & mutual funds etc.

3. Social security schemes.

4. CMSC products like ASBA, Demat etc.

5. Card center products like credit card, debit card and POS.

6. Promotion of digital banking channels.

Banks marketing setup is consisting of a team of 203 marketing officers spread across the country, with clear thrust on the business development. Bank conducted three days marketing conclave at Syndicate Institute of Bank Management, Manipal for skill enhancement of the marketing team. The team was addressed by the Top Management of the Bank highlighting the significance of marketing and brand development. Department is handling one session in every training program to improve the marketing skills among branch managers and other officers, who are attending the training program.


1. Life Insurance

Bank has a Corporate Agency tie-up with Life Insurance Corporation of India, as a Corporate Agent for distribution of Life Insurance Products. Bank has a team of 250 Specified Persons for soliciting life insurance business. Bank also offers life insurance cover under group policy to educational loan borrowers and saving account holders.

Bank earned commission of 867.35 lakh (inclusive of LIC PMJJBY) during FY 2017-18 against a commission of 914.28 lakh (inclusive of LIC PMJJBY) during FY 2016-17.

2. General Insurance

Bank has a Corporate Agency tie-up with United India Insurance Company Limited (UIICO) for distribution of general insurance products, including Synd Arogya (a Group Mediclaim -Cum -Personal Accident Policy with family floater advantage) at competitive premium for its account holders. During the FY 2017-18, Bank has earned a commission of 1,372.89 lakh (inclusive of UIICO PMSBY), compared to commission of 1,009.60 lakh (inclusive of UIICO PMSBY) during the previous year, from general insurance business.

3. Social Security Insurance Schemes (PMJJBY & PMSBY) a. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

Bank has tie up with LIC of India for providing life insurance cover under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). During FY 2017-18, Bank has enrolled 6,25,387 PMJJBY policies. b. Pradhan Mantri Suraksha Bima Yojana (PMSBY)

Banks has tie up with United Insurance Company Limited (UIICO) for providing accidental death insurance cover under Pradhan Mantri Suraksha Bima Yojana (PMSBY). During FY 2017-18, Bank has enrolled 20,91,857 PMSBY policies.

Mutual Funds

Acting as a financial supermarket, offering various financial products under one umbrella, Bank has tied up with nine leading Asset Management Companies for distributing Mutual Fund products. As on 31.03.2018, the Bank had a team of 488 NISM (Series-V-A) Certified Persons and 400 EUIN compliant staff facilitating informed selling.

Bank earned brokerage of 107.40 lakh during FY 2017-18 against a brokerage of 68.80 lakh in FY 2016-17 from Mutual Fund business.

Cash Management Services (CMS)

The Bank offers a state-of-the-art technology driven products to corporate, private and foreign banks for efficient management of account receivables and payments. The Bank also offers CMS services to its clients through all branches across the country. Auto debit mandates facility and centralized cheque debit facilities are being offered. Payment of dividend warrants / interest warrants / DD drawing arrangement and remote DD printing facilities are being offered under payments.

Capital Market Services

Applications Supported by Blocked Amount (ASBA)

The ASBA [Application Supported by Blocked Amount] facility was introduced in the Bank during October 2010. Bank is registered with SEBI as Self Certified Syndicate Bank (SCSB) for providing Applications Supported by Blocked Amount (ASBA) to its customers. Bank has integrated ASBA facility with its core banking solution. ASBA process is available in all public issues made through the book building route and rights issues. This scheme aims at providing the facility of blocking of amount to the extent of the bid amount of our customers investing in shares and bonds through the IPO/FPO.

Depository Participant Services

Your Bank is holding permanent registration as Depository Participant issued by the Securities and Exchange Board of

India (SEBI). The Bank is a Depository Participant of CD This facility enables customers to keep their Capital Market Securities in electronic form. Your Bank provides 3-in-1 account cum on-line trading facility, in collaboration with M/s Asit C Mehta Investment Intermediates Ltd, under the brand name "Synd-e-Trade". Further Bank is also moving for tying up similar facility with better branded security dealers.

Other Services

New Pension System (NPS)

The Bank is registered with the Pension Fund Regulatory and Development Authority (PFRDA) as Point of Presence (POP) for offering various services under the New Pension System – a scheme introduced by the Government of India for providing old age income security. 3481 branches of your Bank are registered with NSDL for offering various services under the scope of the NPS as Point of Presence – Service Provider (POP-SP).

Atal Pension Yojana (APY)

The Government of India introduced the Atal Pension Yojana (APY), with effect from 1st June, 2015, for creating a universal social security system for all Indians, especially the poor, the under-privileged and the workers in the unorganised sector. APY is being administered by the Pension Fund Regulatory and Development Authority (PFRDA) under the overall administrative and institutional architecture of the National Pension System (NPS). 4012 branches of your Bank have been registered as NPS Lite Collection Centers (NLCCs) to offer the services under this scheme to the customers ranging from 1,000 per month to 5,000 per month, at the age of 60 years, depending on their contributions, which itself would vary on the age of joining the APY.

CARD BUSINESS Global Debit Cards:

The Bank launched Global Debit Cards in association with VISA on 29.03.2003 and in association with Master Card (Maestro Brand) on 22.06.2011. In 2012, the Bank started issuing RuPay Debit Cards in association with NPCI. The Bank has been issuing VISA International Gold Debit Cards with higher transaction limits w.e.f 20.10.2012.

During 2016, the Bank has launched the following new variants of Debit Cards in association with NPCI.

RuPay Mudra Cards

RuPay Platinum Cards

AEPS RuPay Debit Cards (Aadhar enabled)

During the year, we have enabled NPCIs RuPay Debit Cards for e-commerce transactions through OTP

The Bank has issued 213.76 lakhs Debit Cards till 31.03.2018, out of which 160.37 lacs Debit Cards are active as on 31.03.2018.

Credit Card:

Bank, in association with VISA International, offers Gold and Classic Credit Cards which can be used at ATMs, Point-of Sale Terminals (POS) and Internet, w.e.f 20.10.2003. Bank has issued 1,46,157 credit cards till 31.03.2018. Bank has entrusted end-to-end management of Credit Card services through M/s Atos Worldline India Pvt Ltd since 04.02.2015.

Green PIN Implementation for Debit Cards:

The Green PIN facility for resetting the Debit Card PINs in SyndicateBanks ATMs through OTP delivery on customers registered mobile numbers is presently extended to active debit cards. The Debit Card Issuance Application is customized to extend this facility for new Debit Cards also. With this customization, Branches are enabled to issue new Debit Cards without physical delivery of PINs.

Point of Sale (POS) Acquiring:

Bank ventured into the Merchant Acquiring business on 02.10.2009. All its POS terminals do comply with VISA / Master Card / RuPay specified standards and are fully compliant to handle EMV and PIN based transactions for all types of Cards issued by Banks. As on 31.03.2018, Bank had installed 8140 POS Terminals in total, out of which 3,644 terminals were installed during the year.

Bank launched 2 new current account products linked to POS terminals. The features are devised to give rent free POS terminals based on the Monthly Average Balance (MAB) maintenance of 1.00 lakh and 2.00 lakhs in the current accounts.

The force settlement to process the POS transactions wherever the merchant does not settle the transactions in the terminal is reduced to 2 days from the existing 5 days and credit processed to the Merchant accounts

Delivery Channels


Bank has operationalised 3907 ATMs and 341 BNAs as on 31.03.2018. Your Bank customers can deposit cash into their accounts or third party accounts in Bank using BNAs.

Internet Banking

Banks Internet Banking has 13.11 Lakhs registered users as on 31.03.2018. Bank has added new features like transfer of funds using RTGS option in Internet Banking, reduction of ATM card withdrawal limit through online, reduction in Debit Card purchase transaction limit through online and Mobile Banking PIN reset. Hindi version of Internet Banking site is also made available.

Mobile Banking

Banks Mobile Banking application is becoming more popular and is having a registered user base of 14.98 Lakhs as on 31.03.2018. Mobile Banking application is provided with links to open SB account through Synd Swayam and to apply loans. These facilities can be accessed by a non-customer also after downloading our Mobile Banking app.

SMS Banking

Mandatory and non-mandatory SMSs are sent to customers. Mandatory SMSs are not chargeable whereas non-mandatory SMSs are chargeable. The registered SMS Banking users are 73.05 Lakhs.

Missed Call Banking

Customers who wish to avail this facility may register their mobile number by sending specified text message from his registered mobile number to Banks Missed call number 9210332255.

After successful registration, customer can get balance alert for their account by giving missed call to the specified number. Missed call Banking registered users as on 31.03.2018 is 2.61 Lakhs.

Synd UPI

Synd UPI is a Mobile Application that facilitates customers to make simple, easy and quick payment transactions using Unified Payments Interface (UPI). Direct bank to bank payments can be made instantly using Virtual Payment Address or Aadhaar Number or Account Number and IFSC. The number of registrations with Bank is 64,159 as on 31.03.2018.

Bharat QR

Customers who have registered their mobile numbers with Bank and having Debit Cards (RuPay cards as of now) can avail the facility of making payment at merchant locations through Bharat QR. Bharat QR allows merchants to receive payments digitally without the use of Point-Of-Sale machines. Customers can open the app installed in their Smart Phones, scan the Bharat QR Code available at merchant location to make the payment. Number of users for Bharat QR Code is 2404.


Bank has Product Innovation and BPR department to carry out Digital Banking, product innovation and business process re-engineering activities of the Bank.

Product Innovation

In order to cater to individual needs of all customers, including dominant Gen-Y customers, Bank has leveraged its Technology to create need of the hour products and services. During the year, Bank has introduced innovative products viz, Synd Supreme and Multi-Currency Co-branded Forex Pre-paid Cards.

Project Ananya:

The Bank has embarked into Business Process Re-engineering under the brand name Project Ananya. The four broad pillars of the project are:

Business Process Re-engineering (BPR)

Digital Banking

Sales & Customer Relationship Management (CRM)

Human Resource Development

1. Business Processes Re-engineering:

Process streamlining and centralization has been proven among private and public banking peers to be an important lever to help reduce branch work load, so as to enable the branches to focus on sales and customer service. Bank has streamlined regular processes like SB Account opening, retail loan processing, SME loan processing by centralizing processes through central back-offices.

Branch Transformation

This pillar also aims to achieve branch transformation, ensuring focus on branch ambience as a new-age Bank, customer convenience, digital services and increased productivity. Accordingly, a total of 600 branches have been transformed as Ananya Branches across India as on 31.03.2018 and another 200 branches are targeted to be transformed by 30th September, 2018 taking the total to 800 Ananya Branches.

National Processing Centre (NPC)

The process of instant account opening activity through National Processing Centre, Manipal is extended to 1029 branches pan India. It is envisaged to link all the Branches by 30th June 2018 by expanding the NPC at Manipal and opening two more centres at Bhubaneswar and Delhi. More than one lakh fifty thousand accounts are activated since establishment of NPC at Manipal.

Retail and MSME Loan Center (RMLC)

Bank has setup Retail & MSME Loan Centers (RMLC) in 27 potential centers as on 31.03.2018 for processing of all mortgage based Retail loans and MSME proposals of 10 lakhs and above. The setup is designed to smoothen the backend office work of processing, sanctioning, documentation, releases and follow-up through well trained staff to reduce the TAT as well as to ensure quality and uniform processing of loans. Branches will be free to act as selling agents with focused approach. Bank is in the process of identifying such RMLCs in other potential centers.

Contact Centre

Contact Centres at Hyderabad and Mohali have started providing a 24 hour in-bound services for the customers and public, apart from out-bound call activity.

2. Digital Banking

With the advent of heavy digitization in the life of customers, as well as the significant digital push by the Government in banking, improving our digital banking channels and driving adoption among customers is prime pillar of project Ananya. It aims to improve features of existing digital channels viz internet banking, mobile banking, simplified on-boarding process and drive for better adoption among existing and new customers. Equipped Ananya branches with Digi Zones powered by self-service machines such as ATM, Bunch Note Acceptor (BNA) and Passbook update Machines for adoption of digital channels. We have also provided Online Saving Account opening and Online Loan application request for the convenience of the customers.

3. Sales & CRM

Project Ananya aims to streamline Sales and CRM as an end to end process- from targeting potential customers to final conversion. An App is developed for comprehensive Lead Management System which would facilitate sales and marketing. Further Bank data is used to drive Big Data Analytics to achieve targeted marketing. In order to achieve all this, and ensure sustainability, the project also aims to strengthen and focus on the marketing resources.

4. Human Resource Development

Organizational restructuring to ensure a top to bottom alignment with organizational objective, while paving the path for a meritocracy based organization, keeping employees motivated and engaged. This module also aims to address the Banks performance management system, Training structure and employee efficiency and productivity. To give confidence to employees by motivating them so that they feel your bank is the best Bank to work with.


1. Parliamentary Committee on Subordinate Legislation to Jamnagar, Mumbai, & Bhubaneswar from 15th to 22nd April. Subject- RBI (Frauds classification and reporting by commercial banks and select FIs) Directions, 2016 and detection, Confiscation and prevention of counterfeit notes of the new denominations reentering the banking system/economy. Our bank had attended the Meeting at Jamnagar on 16.04.2017, Mumbai on 19.04.2017 and at Bhubaneshwar on 20.04.2017.

2. Parliamentary Committee on Government Assurances visited Ooty & Coimbatore from 5th–13th May 2017. Subject - USQ 727 dated 22.11.2016 regarding Cyber attack on ATM System of Public and Private Banks and USQ 1516 dated 29.11.2016 regarding RBI guidelines on safety of Bank customers. Our bank had attended the meeting at Coimbatore on 12.05.2017.

3. Parliamentary Committee on Official Language visited to Nainital from 2nd - 9th May 2017. Subject - Implementation of Official Language. Our Bank had attended meeting at Nainital on 8.5.2017.

4. Parliamentary Standing Committee on finance visited Mumbai, Pune & Kochi from 11th – 16th May 2017. Subject-Banking sector in India – challenges and way forward. Financial Inclusion-schemes, targets and achievements. Transformation towards a digital economy. Our Bank had attended the meeting at Kochi on 15.5.2017.

5. Parliamentary Committee on Petition visited Kochi & Munnar from 30th May to 02nd June, 2017. Subject

– Petition praying to check sudden surge in NPAs in Public Sector Banks. Our Bank had attended meeting at Munnar on 1.6.2017. (Our Bank was Nodal Agency).

6. Parliamentary Committee on Urban Development visited Bengaluru, Chennai, Kochi & Munnar from 06th – 11th June 2017. Subject – Urban Development. Our Bank had attended meeting at Bangalore on 6.6.2017. (Our Bank was Nodal Agency).

7. Parliamentary Committee on Subordinate Legislation to Vijayawada, Chennai, & Kolkata from 21st to 26th June 2017. Subject – Reserve Bank of India Master circular on Mobile Banking Transaction in India –Operative guidelines for Banks dated 1st July 2016 & Detection, confiscation and prevention of counterfeit notes in new currency post demonetization in the states of Andhra Pradesh, Tamil Nadu and West Bengal. Our Bank had attended the meeting at Vijayawada on 22.6.2017, Chennai on 23.6.2017 and at Kolkatta on 25.06.2017.

8. Parliamentary Committee on Government Assurances visited Bhubaneshwar & Hyderabad from 27th Aug– 1st Sep 2017. Subject - In connection with the Assurance arising from USQ 2175 dated 21.03.17 regarding irregularities in sanctioning loans by PSBs. Our Bank had attended meeting at Hyderabad on 1.9.2017.

9. Parliamentary Committee on Subordinate Legislation to Hyderabad, Jaipur & Lucknow from 27th to 02nd Sept 2017. Subject - Master direction-RBI {Lending to Micro, Small & Medium Enterprises (MSME) sector}-Directions 2017; RBI scheme for sustainable structuring of stressed Assets, problems faced by Banks due to rising NPA of different categories; Detection, confiscation and prevention of counterfeit notes in new currency post demonetisation in the states of Uttar Pradesh, Rajasthan & Telangana. Our bank had attended meeting at Hyderabad on 28.8.2017 (Our Bank was Nodal Agency), and on 30.8.2017 at Jaipur.

10. P arliamentary Committee on Official Language visited Delhi, Mumbai, Kochi, Thrissur, Agatti & Kavrati from 10th – 17th Oct 2017. Our bank had attended meeting at Kavaratti on 14.10.2017.

11. Parliamentary Committee on Subordinate Legislation to Bengaluru, Vishakhapatnam and Mumbai from 04th to 09th Nov 2017. Subject - Stand Up India Scheme; RBI Master circular on Detection and Impounding Counterfeit Notes; and detection, confiscation and prevention of counterfeit notes of the new currency in the state of Karnataka. RBI Master Direction – Priority Sector Lending – Targets and classification, RBI Master circular on Detection and Impounding Counterfeit Notes; and detection, confiscation and prevention of counterfeit notes of the new currency in the state of Karnataka and Andhra Pradesh. Our Bank had attended the meeting at Bangalore on 4.11.2017, Vishakhapatnam on 6.11.2017 and Mumbai on 8.11.2017.

12. Parliamentary Committee on Commerce to Surat, Mumbai, Hyderabad & Bengaluru from 14th to 19th January 2018. Subject - Impact of cheap Chinese consumer goods on Indian Industry. Our Bank had attended the Meeting at Bengaluru on 19.1.2018.

13. Parliamentary Committee on Industry to Bengaluru, Tirupathi & Chennai from 15th – 19th January 2018.

Subject – Issue in implementation of Credit Linked Capital Subsidy Scheme (CLCSS). Our Bank had attended the meeting at Bengaluru on 16.1.2018.

14. Parliamentary Committee on Labour to Ahmedabad

& Bengaluru 23rd to 24th January 2018. Subject – Suggestions/views on the ‘Code on Wages Bill 2017 and ‘Deployment of Contract/Casual/Sanitation workers for Perennial nature of jobs in Government/PSU offices/Establishments. Our Bank had attended the meeting on 24th January 2018. (Our Bank was Nodal Agency).


Compliance policy approved by the Board of Directors of the Bank articulates that the compliance function is an integral part of governance along with the internal control and risk management process. The compliance department headed by a Chief Compliance Officer. He oversees the compliance functions in the Bank and assists the top management in managing the compliance risk. ContinuingwiththeBankscommitmenttohighcompliance standards, compliance function is reviewed regularly for making improvements. The compliance policy is reviewed every year and amendments, if necessary, are carried out based on the experience gained and utility aspect.


Your Bank has implemented the relevant provisions of the act with effect from October 2005. The information related to the Bank as stipulated under the act is displayed on the Banks website.

The Appellate Authorities for the Bank under the act and the Public Information Officers (PIOs) and Alternate Public Information Officers (APIOs) at various levels have been designated. The Bank has clearly spelt out the roles and responsibilities at different levels under the act. During the year the Bank has designated 22 Appellate Authorities, 87 PIOs and 98 Alternate PIOs and one transparency officer for smooth functioning of RTI matters.

As directed by the Parliamentary Committee, the Bank has constituted a monitoring committee at apex level to oversee the implementation of the RTI Act. During the year, the committee has reviewed the effectiveness of implementation of the RTI act in the Bank. The Bank has started online RTI portal on Banks intranet for assisting Appellate Authorities/ PIOs/Alternate PIOs and Nodal officers handling RTI matters. Bank is also linked to the online RTI portal along with other PSUs/Public Authorities. The PIOs/FAAs of the Bank are receiving and replying to applications/ appeals through online RTI portal also. The bank has received 3,121 of RTI applications and 429 first appeals in the year. During the year, the Bank has disposed of all the applications and all appeals received, within the stipulated time.


The Bank has an Audit and Inspection Department, which is independent of everyday activities of the Bank located at Head Office, Manipal, Karnataka that examines the adherence to systems, procedures, and policies of the Bank. The guidelines received on internal control from RBI, GoI, Banks Board, Audit Committee of the Board (ACB) and Audit Committee of Executives (ACE) constitutes part of the internal control system for better Risk Management. Audit Committee of the Board (ACB) oversees the internal audit function of the Bank and guides the Bank in developing effective internal control systems. It also monitors the functioning of the Audit Committee of Executives (ACE) and Audit and Inspection Department of the Bank.

The ACE, comprising of the Executive Director in charge of the Audit & Inspection Department as Chairman and the General Managers of Head Office & Corporate Office as members is a layer above the Audit and Inspection Department. The other Executive Director also participates in the meeting as invitee. The committee reviews all the notes to be placed before the ACB and monitors the compliances of the major audit observations and gives directions for rectification of the deficiencies, policy changes, procedural improvements in internal control system for better Risk management.

Eight Zonal Inspection Centres (ZICs) operate as extended arms of the Audit and Inspection Department (A&ID) to carry out various types of audits of the branches and offices to examine adherence to systems of internal control, procedures and policies.

The Bank has a well-defined, Board approved Comprehensive Internal Audit Policy (CIAP) covering RBIA, Information System Audit, Concurrent Audit, Credit Audit, Compliance Audit, Special Audit, Know Your Customer/ Anti Money Laundering (KYC / AML) Compliances, Offsite Monitoring, Empanelment of Retired Officers for assisting in internal audit, detecting seepage of income, procurement Audit etc. The policy is being reviewed/updated on annual basis.

Your Bank is the first Bank to implement software driven RBIA among all Public Sector Banks. Bank has also implemented the software driven concurrent audit w.e.f. 01.07.2014. Based on the feedback received from the concurrent auditors/branches, Bank revisited the Concurrent Audit software and revamped it by introducing more user friendly features. Bank has upgraded the existing software module to a new version which will ensure more objective risk rating of branches/ offices, so that special attention can be given to monitoring of branches from compliance angle, based on risk assessment.

The Risk Based Internal Audit (RBIA) of all the branches is supplemented with concurrent audit of branches having high volume business with special reference to Advances, high risk areas like specialized branches, Treasury & International Banking Division, Foreign Exchange Processing Centres (FXPC), Funds and Investment Management Division, Capital Market Services, Dept. of Information Technology and Card Centre.

The Annual Audit Plan (AAP), drawn in accordance with the Internal Audit Policy involves the schedule & rationale of the audits planned for the year. For the year 2017-18, Inspection Department has completed 3,548 audits consisting of 2,908 RBIA, 488 Compliance Audit and 1,052 Credit Audit.

Similarly, RBIA of all ROs and ZOs, bi-annual management audit of 3 Regional Rural Banks and annual management audit of all functional departments of Corporate Office and Head Office is also being conducted by HO: A&ID. During the year 2017-18, Bank has completed Management Audit of 2 Regional Rural Banks and of all functional departments of Corporate Office and Head Office and Zonal Offices.

Audit and Inspection Department of the Bank conducted

16 IS, Audit and Risk Based Audit of the "Outsourced Financial Service Providers for all out sourced activities of the Bank.

The Bank has surpassed the Ministry of Finance, Govt. Of India stipulation of minimum concurrent audit coverage of 70% of total business. The coverage under concurrent audit at 825 branches stood at 71.29 per cent of business, 77.01 per cent of advances and 65.58 per cent of deposits of the Bank as at 31.03.2018.

Orientation and refresher training programmes were conducted for field level officials from Inspection stream during the year. Thirty-five specialist officers inducted for inspection stream were trained at NIBM, Pune and IS Audit Team was trained under VAPT certification by IBDRT, Hyderabad. Bank has also trained officials from all the ZICs who are handling KYC/AML and Offsite Monitoring.

Offsite Monitoring Cell and KYC/AML Cell

The Offsite Monitoring System is an effective management tool to strengthen the internal control mechanism. It comprises of one OMC unit at Corporate Office, and one unit each at all the eight zonal inspection centres. All the alerts generated by KYC/AML Cell and Offsite Monitoring Cell are continuously monitored, followed up and ZICs coordinates with Regions for closure of these alerts. STRs were filed with FIU-IND in case of suspicious transactions. The Banks Inspection System has been effectively monitoring the compliance of systems & procedures laid down by the Board, the Regulator and the Government of India.

Risk Based Supervision Cell (RBS Cell)

RBIs revised Supervisory Approach is called SPARC (Supervisory Programme for Assessment of Risk and Capital). In order to have an institutional mechanism to ensure accuracy of data, centralized ownership of data, to check consistency and also to be a single point of collation and submission of RBS data to RBI, RBS cell was formed in Bank during May 2016. RBS Cell ensures the submission of Tranche 1, 1A, 1B (quantitative data), Tranche II and Tranche III (qualitative data) data to RBI. At present, the cell is attached to Audit and Inspection Department.

Fraud Risk Management Cell (FRMC)

FRMC monitors and follows up of fraud cases including CPPR (Claims Paid Pending Recovery) related to frauds with various offices. It also ensures conducting internal investigation, examination of staff accountability, Departmental action, recovery and closure. The cell places detailed note for amounts of above 1 crore/10 crore before Special Committee of the Board/

Government nominee Director on the board of the Bank for taking necessary action. The cell reports/updates RBI database including Central Fraud Registry, the progress related to criminal action, internal investigation, action taken and provides information related to queries and clarifications sought by Finance Ministry. The cell not only reports but also identifies the causative factors and share the same with respective departments for initiating corrective actions.


Vigilance function in a Bank is one of the Managements tools for upholding ethics among employees. Vigilance in any organization including the Bank is an integral part of the Management. One of the objectives of the Vigilance machinery is to enhance efficiency and effectiveness in decision making. Vigilance Department plays an active role in preventive measures to avoid misuse of systems, and suggesting systemic improvements at various levels. The Vigilance Awareness Week was observed from 30th October to 4th November, 2017 with the theme "My Vision-Corruption Free India". As per the instructions received from the Vigilance Commission, various activities were conducted at administrative offices, branches and RRBs. Bank has conducted the following activities during vigilance awareness week 2017.

Bank has reached approximately One Crore, Thirty three lakh customers through SMS requesting them to take e Pledge.

Besides that,, the link to e-pledge was made available in Banks website.

Bank has conducted on-line quiz programme for all the staff members of Syndicate Bank on all days during the Vigilance Awareness week and 13,033 staff members participated.

324 Workshops and sensitization programmes were organized by Regional offices and ZOs and 9895 staff members participated.

Outreach activities conducted by the Bank during vigilance awareness week-2017

As a part of activities under vigilance awareness week 2017, Bank has organized a Human Chain to create vigilance awareness among public at Corporate Office on 03.11.2017 at 10.00 am. MD&CEO, EDs, CVO, GMs and staff members from Corporate Office, and branches with a total of 328 people participated in the event. Similarly a Human chain was also organized on the same day at Head office. In total 143 events such as Human Chain, Walkathon, processions, and events among staff members were conducted in all major cities and towns in which 6,224 people participated.

589 Customer grievance redressal camps were organized by various branches and 11,722 customers benefitted in the same. Elocution, Quiz and essay competitions were conducted by various branches and Regional offices in 1,470 schools and 632 colleges and total number of 45,765 students participated in the events. 1,783 Gram sabhas were organized by the branches across the country, by involving 32,403 participants. Formations of 183 Integrity clubs, as suggested by CVC, were initiated in the schools and colleges by various branches with 6,332 students as its members. The RRBs, sponsored by Bank, also have conducted 439 programmes at schools and colleges with a participation of 39,718 students, 562 gram sabhas with a participation of 25,470 customers and 22 other events like human chain, procession etc., with a participation of 3,525 people.

During the year, preventive Vigilance exercises were conducted in 818 branches and surprise verification of goods hypothecated to Bank was conducted in 1456 accounts.


With the aim of business development and better monitoring and control, Bank has opened 9 new regional offices namely Siliguri, Chennai-II, Raipur, Noida, Ranchi, Bhubaneshwar-II, Thirupathi, Nizamabad and Udaipur during 2017-18. With the operationalization of these 9 new Regions the total number of Regions of the Bank has reached 60.


During the year industrial relations in the Bank has been cordial and harmonious facilitating all-round growth in the business of the Bank. The Unions/Associations have also been responsive and proactive to the corporate goals.


The details of various awards and accolades received by your Bank during the year 2017-18 which are as under.

Bank has been awarded "Rajbhasha Kirti Puraskar" for 2016-17 with first prize by the Government of India for its Hindi House Journal "Jagriti" among all the Nationalised Banks/FIs situated in ‘C region. Bank has been awarded with Second Prize by the Reserve Bank of India for its Hindi House Journal "Jagriti" among the all Nationalised Banks/FIs for the FY 2016-17.

Bank has been awarded under "Priority sector lending in Large Bank category" by Assocham for the FY 2016-17.

Bank has been awarded Runner-upwith under "Best Social Banking in Large Bank Class" by Assocham for the FY 2016-17.

Bank has been awarded "Award of Excellence" from Ministry of Rural Development, Government of India, on 07.06.2017 in recognition of exemplary leadership given to the RSETIs sponsored by Bank for FY 2014-15 and 2015-16. Bank has been awarded Skoch Awards 2017 under financial inclusion category for developing and implementing Privilege Identity Management, Aadhar ePDS, Aadhar Pay, eKYC Online Account Opening, Save the Farmer Campaign and Card Limit Management by Skoch group for the FY 2016-17.

Bank has received Skoch Smart Technology Award 2017 for developing and implementing Security Operations Centre (SOC) Tools, Distributed Denial of Service (DDoS) and Security Information & Event Management (SIEM) by Skoch group for the FY 2016-17.

Bank has received Skoch Award–Mudra Performance for Employment Generation Under Pradhan Mantri Mudra Yojana by Skoch group on 8th September 2017 Bank has received third prize for the overall performance under SHG-Bank Linkage and JLG-Bank Linkage programme for FY 2016-17 among commercial Banks operating in Karnataka from NABARD.


SyndBank Services Limited (SBSL) was incorporated under the Companies Act, 1956, on 25.01.2006, as a wholly owned subsidiary of SyndicateBank, with an authorized capital of 10 Crore and paid up capital of 25 Lakh to extend back-office services to SyndicateBank, sponsored RRBs, its clients and other financial institutions. The company has undertaken the following activities during the year 2017-18: I. The Company prints and dispatches retail loan follow up notices to SMA borrowers on monthly basis based on the data received from the Bank apart from sending SMS messages on monthly basis which helped the Bank to maintain a healthy retail loan portfolio.

II. The Company has continued the service of managing a small call center service on behalf of the Bank to tele-call the retail loan borrowers and follow up SMA accounts of the branches coming under Bengaluru I and II Regions and also few other Regions. There was a good response to this with recovery in over 60% of delinquent accounts. III. Pre-shipment/Post-shipment testing of computer hardware procured by SyndicateBank and RRBs sponsored by SyndicateBank and also of other Public

Sector Banks / Financial Institutions by SBSL I T officers to ensure that the hardware meets the specifications, as per the Purchase Order issued by the Banks/Financial Institutions.

IV. Printing & dispatch of Internet Banking Passwords for customers of Syndicate Bank.

V. Collection of cheques and cash from Bengaluru Water

Supply & Sewage Board kiosks spread across Bengaluru city and preparing clearing up loadable files on CBS system on behalf of SyndicateBank, BWSSB Branch, Bengaluru. VI. Out sourcing activities like Providing Resources for manning 24 x 7 Internet Banking Help Desk, ATM Monitoring Desk and Mobile Banking Help Desk on behalf of CO: DIT and resources for call desk for State Level Bankers Committee (SLBC), Karantaka.

SBSL is a profit making company since its inception. The performance highlights under key parameters during the last three years are as under –( in lakhs)


March 16

March 17

March 18

Authorised Capital




Paid Up Capital




Reserves & Surplus




Fixed Assets (Net)




Total Income




Profit Before Tax




Profit After Tax





1. Shri Ajay Vipin Nanavati has assumed charge as Non-Executive Chairman of the Bank on 22.08.2017.

2. Shri Melwyn O Rego has assumed charge as Managing Director & Chief Executive Officer of the Bank on 01.07.2017.

3. Shri S Krishnan has assumed charge as Executive Director of the Bank on 01.11.2017.

4. Shri Arun Shrivastava, Managing Director & Chief Executive Officer superannuated on 30.06.2017.

5. Shri Ravi Shanker Pandey, Executive Director superannuated on 31.10.2017.

6. Shri Rudra Narayan Kar, Nominee Director,Reserve Bank of India, deputed to another institution w.e.f. 01.07.2017.


The Directors, in preparation of the annual accounts for the year ended March 31, 2018, confirm the following: That the applicable accounting standards have been followed in the preparation of annual accounts along with proper explanation relating to making departures.

That the accounting policies, framed in accordance with the guidelines of the Reserve Bank of India, were consistently applied.

That reasonable and prudent judgments and estimates were made so as to give a true and fair view of the state of affairs of the Bank as at the end of financial year and of the profit or loss of the Bank for the year ended March 31, 2018.

That proper and sufficient care was taken for maintenance of adequate accounting records in accordance with the provision of applicable laws governing banks in India for safeguarding the assets of the Bank and for preventing and detecting fraud and other irregularities.

That the annual accounts have been prepared on a ‘going concern basis.

That proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.


The Directors wish to place on record their sincere appreciation to the public, valuable customers, shareholders and staff members for their continued support and patronage in India and abroad.

The Directors are also indebted to the Ministry of Finance, Government of India, RBI, SEBI and other regulatory authorities, various Financial Institutions, Banks and Correspondents in India and abroad for their unflinching and valuable support and guidance from time to time.

The Board extends a heartly welcome to Shri Ajay Vipin Nanavati who has been appointed as Non-Executive Chairman of the Bank, Shri. Melwyn O Rego, who has been appointed as Managing Director & Chief Executive Officer of the Bank and Shri. S Krishnan, who has been appointed as Executive Director of the Bank.

The Board also expresses its sincere gratitude to Shri Arun Shrivastava, Managing Director & Chief Executive Officer and Shri Ravi Shanker Pandey, Executive Director, who had superannuated, for their able guidance, leadership and support that they had provided during their tenure.

The Board also acknowledges the valuable contributions and support of Shri Rudra Narayan Kar, RBI Nominee Director of the Bank during his tenure in the Bank.

For and on behalf of the Board of Directors.

(Melwyn Rego) Managing Director & CEO

Place: Manipal Date: May 31, 2018