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Syndicate Bank

By: EconomyWatch Content Date: 30 October 2009

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The Syndicate Bank is an Indian public sector bank with considerable foothold in the country’s southern region. It has effective financial products for rural segment and priority sector.

Syndicate Bank: Company Information

The Syndicate Bank began operations in 1925 in Udipi, which is a small town in the southern state of Karnataka (India). Known as the Canara Industrial & Banking Syndicate Ltd, the bank began with a solid, social obligation. Its aim was to provide financial assistance to the local handloom weavers.

In 1964, the bank’s name was officially changed to Syndicate Bank Limited. Its headquarters shifted to Manipal in Karnataka.

The bank’s Pigmy Deposit Scheme is its most unique offering right from the time of its inception as it enabled the bank to lend as little money as 2 annas (earlier, copper coins were used in India) per day. This scheme became a huge success. In 2009, the bank’s website indicates that the scheme earns almost Rs. 2 crores every day.

Considering the bank’s broad consumer base and product innovation capability, the Government of India nationalized it along with 13 other banks in the year 1969. Over the years, the bank has acquired several banking units.

The bank’s official 2009 data indicates that it has over 2,152 branches, all of which are interconnected through a core banking system. To spearhead the concept of ‘Anywhere, Anytime, Anyhow’ banking service, the bank has a network of 1119 ATMs spanning 543 cities. It is also a member of ‘CashTree’ programs, under which the Syndicate customers can use ATMs of other partner banks without paying any processing charges.

Syndicate Bank: Products and Services

Products and services offered by the Syndicate Bank are:

Deposits: Traditional deposit products include:

savings and current accounts
fixed deposits
tax savings
Pigmy deposits

Premium account services such as multi-city current and savings account are also available.

Loans: Some of the most common loan products are:

Auto
Home
Agriculture
Educational
Pension loans
Priority sector lending.

Other services pertain to:

demat account
cash management
gold coins purchase
bank draft facilities

Apart from the ATM, the Syndicate Bank has other multiple delivery channels such as Internet banking and SMS banking. The bank also has business ties with Visa Inc. to provide credit card and debit card services.