Syndicate Bank Case Study

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Syndicate Bank is a public sector commercial bank in India, which was founded in 1925. The government of India nationalized Syndicate Bank on 19 July, 1969. Syndicate bank has long been a pioneer of development in India. It has played a developmental role in empowering women entrepreneurs, supporting the micro, medium and small enterprises sector, providing agricultural assistance in the form of policies and incentives and encouraging rural development. In this project, we will be focusing upon the developmental role of Syndicate bank in the rural sector. DEVELOPMENTAL ROLE OF SYNDICATE BANK IN RURAL SECTOR: Syndicate Bank was established in 1925 with the objective of assisting handloom weavers financially. From its inception, it has associated…show more content…
It was named “Prathama Bank” and was opened on 2nd October, 1975 in Moradabad, Uttar Pradesh. Thereafter, the bank sponsored ten such Regional Rural Banks . All of these banks have proved to be successful and regularly bring in profits. They serve as trendsetters in the development of rural economy. Currently there are three Regional Rural banks which are sponsored by Syndicate bank. They cover 18 districts in 3 states and consist of a network of 1348 branches. STATISTICAL EVIDENCE FOR REGIONAL RURAL BANKS: As of March 2015- Total Business sponsored by Syndicate bank: 42101 crore rupees Total Deposits of Regional Rural Banks: 23381 crore rupees Total Advances of Regional Rural bank: 18720 crore rupees Number of Kisan Credit Cards Issued By Regional Rural banks: 1094000 Outstanding Credit of Kisan Credit Cards: 7844 crore rupees Net Profit After tax: 409 crore rupees In 1982, Syndicate Bank along with Canara Bank and SDME Trust sponsored the Rural Development and Self Employment Training Institute(RUDSETI) located at Ujire, Karnataka. As of now, there are 27 such institutes in 17 states in India. These institutes help provide free entrepreneurship training to unemployed youth. It has proved to be a successful venture and has even been accepted by the Government of India’s Ministry of Rural Development. It was hailed as a role model to be replicated in each district of the…show more content…
The regional rural banks sponsored by Syndicate banks are notable for its achievements. The following suggestions can help improve the bank’s response to the development of the rural sector 1. Sustainability of the projects for which assistance is being extended, should be properly evaluated. 2. There should be a clear cut time frame for hand holding and leaving the beneficiary on their own. 3. The bank should invest in the development of warehouses for cold storage and facilitate movement of agriculture produced. Plans for the seamless movement of goods and farm products from field to metro should be formulated and implemented. 4. The bank can also assist self help groups right from seed money to hand holding to marketing. 5. Banks should also go for comprehensive crop insurance to prevent farmer destitution and suicides. 6. Value added services tailored to the needs of the rural sector customers should be kept in mind. The bank should follow a participatory, partnership based model for financial inclusion and should introduce more community linked financial

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