SYNDICATE NITTE SCHOOL OF BANKING, GREATER NOIDA

A Project Report on
STRATEGIES FOR BUSINESS DEVELOPMENT OF THE BRANCH

for the completion of

Post Graduation Diploma in Banking and Finance

Submitted By: Project Mentor

SAUMYA AGNIHOTRI Mr.K.S. KARUNAKARA
Roll No. NU15SYNB148
Trainee Officer ASSISTANT GENERAL MANAGER
04-01-2016 to 30-03-2016 SYNDICATE BANK

1
 GURGAON MAIN BRANCH
MARCH 2016
GURGAON

CERTIFICATE

This is to certify that this project titled Strategies for Business

Development of the branch is carried out and completed by
Mr. Saumya Agnihotri for the purpose of 1-year program of PGDBF at
Syndicate Nitte School of Banking. The assistance and help rendered to
him during the course of his internship and project work in the form of
basic source material and information has been duly acknowledged.

Mr. K.S KARUNAKARA

ASST GEN MANAGER

Gurgaon Main Branch

Gurgaon-122001

2
 DECLARATION

I, Saumya Agnihotri student of Syndicate Nitte School of Banking,

Greater Noida, studying for PG Diploma in Banking & Finance, hereby
declare that, I have completed the project on “Strategies for Business
Development of the Branch”. The information submitted is genuine &
practical to the best of my knowledge.

Saumya Agnihotri
(Trainee Officer)
Syndicate Bank

3
 ACKNOWLEDGEMENT

I feel honored and privileged to have the opportunity to work and learn
under the inspiring mentorship of Mr. K. S. Karunakara who has been guiding and
encouraging me in all aspects of Banking. I shall always remember your guidance
and right attitude which invoked a new sense of dedication and loyalty towards
Syndicate Bank.

I also take this opportunity to thank Mr. Ramesh Chandra,

Ms. Esther Chingthianmuan, Ms. Kiran Yadav, Mrs. Lalita Rani and
Ms. Neha Sharma who extended all possible help and provided suffice opportunities
to facilitate a better learning experience.

I would like to mention the major role of Mr. Vijay Singhal and Mrs. Shashi
Kumar who provided continuous support and guidance in my internship program
which helped me understand the intricacies of banking.

I would also like to offer my heartfelt gratitude to Mrs. Parul Chanana ,

Mrs. Kanchan, Mr. Chawla, Mr. Y.D. Sharma and rest of the staff who have
continuously helped me throughout the internship program to show the right path
to learn various practices in Banking.

They all had to bear heavy responsibility and concern in bringing this project
to a successful end, in a selfless spirit.

I also would like to thank Syndicate Nitte School of Banking to have given
me this platform to have a proper insight of practical banking. I take pride to
embark upon my banking career with such vivid experience.

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 Last but most importantly I would like to thank Mr.Hari Kapoor, Mr. M.S.
Rao and my father Late Dr. O.P. Agnihotri for all the inspirations and teachings,
which has nurtured me to have the right attitude to learn things in best possible way.
They will always be my role models professionally and personally.

Table of Contents

Chapter No. Title Page no.

Executive Summary 7

1. 1.1 Introduction 8

1.1.1 Banking in India 8

1.1.2 Syndicate Bank 9

1.1.3 Banks Transformation 10

1.1.4 History 19

1.1.5 Equity value 21

1.1.6 Branch Network 22

1.1.7 Domestic presence of Syndicate Bank 16

1.2 Objective of project 25

1.3 Research Methodology 25

2. Analysis 26

2.1 Branch analysis 26

2.2 Market analysis 32

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 2.3 SWOT analysis 34

3. Findings / Business development strategy 38

3.1 Setting strategic objectives 38

3.2 Formulation of strategy/ Recommendations 39

3.2.1 Product 39

3.2.2 Price 39

3.2.3 Place 40

3.2.4 Promotion 40

3.2.5 People 41

3.2.6 Process 41

3.2.7 Physical Environment 42

4. Our New facebook page 43

3.1 Screenshots 44

5. Conclusion 50

Bibliography 51

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 Executive Summary

Banks as a financial institution is just not bound to deposits of funds and giving
loans to its customers. It has expanded offering various products to its customers such as
personal loans, home loans, savings account, and credit cards and so on. It is very essential
for a Bank to know, which user to target for what product and when. The goal of data
mining department is to arrive at accurate answers to these 3 questions, (Which User, What
Product, When), and it is a rewarding exercise for the bank, branch and definitely to the
employee as well to the existing and prospective customer of the bank.

The problem is very simple. A customer may have purchased a single product or
multiple products from a bank. Ideally, the bank would like if all its customers bought all
of its products. However in practical dimensions this isn’t possible, therefore without any
targeting model; the bank would be wasting money, time and resources by randomly
targeting customers for its products.

Using a little sophistication of data mining techniques, we would be able to build a

targeting model or a response model on customer base. A response model is a predictive
model which estimates the future behavior of a given customer even before it occurs. With
a precise accuracy it could be very useful for banks in saving majority of costs in various
departments/channels. There are various types of data available for analysis like
demographic, behavioral & attitudinal. The above data can be very useful in data mining
methods, however the cost, usefulness and expertise to store / retrieve data have to be
assessed and judged.

This project is an honest attempt to find out the techniques and methods which are useful
in identifying customer needs and then formulating strategies for business development by
providing complete banking solutions & satisfaction to customers.

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 Chapter 1
Introduction
1.1 Introduction:

1.1.1 Banking in India

History proves Banking has always been a part of civilization. As early as Harrapan
civilization or later during the period of kings and emperors banking in India has always
existed. However, modern age banking originated in the last decades of the 18th century.
The first banks were Bank of Hindustan (1770-1829) and The General Bank of India,
established 1786 and since defunct. The banking became more prominent and challenging
after inclusion of private banks and retail banking. And today we are dealing in virtual
systems for our daily financial purposes.

India’s banking sector is currently valued at Rs 81 trillion (US$ 1.31 trillion). It has the
potential to become the fifth largest banking industry in the world by 2020 and the third
largest by 2025, according to an industry report. The face of Indian banking has changed
over the years. Banks are now reaching out to the masses with technology to facilitate
greater ease of communication, and transactions are carried out through the Internet and
mobile devices.

In the recent times, the world economy has faced huge crisis. However amidst all these
turmoil Indian Banking Industry has been amongst the few to maintain resilience. The
tempo of development for the Indian Banking Industry has been remarkable over the past
8
decade. It is evident from the higher pace of credit expansion, expanding profitability,
lower incidence of non-performing assets and focus on financial inclusion have contributed
to making Indian Banking Industry vibrant and strong.

1.1.2 Syndicate Bank

Syndicate Bank
सससससससस सससस

Type Public

Traded as BSE: 532276

NSE: SYNDIBANK

Industry Banking, Financial Services

Founded Udupi, 1925 (as Canara Industrial and Banking Syndicate Limited)

Founder Upendra Ananth Pai, T M A Pai

Vaman Kudva

Headquarters Manipal, Karnataka, India

Key people Shri Arun Shrivastava

(Managing Director and CEO)

Shri T K Srivastava
(Executive Director)
Shri Ravi Shanker Pandey
(Executive Director)
Products Finance and insurance
Consumer Banking
Corporate Banking
Investment Banking
Investment Management
Private Equity
Mortgages
Credit Cards
Slogan Faithful and Friendly (English) & Viswasaneeya Hitheshi (Sanskrit)
Website www.syndicatebank.in

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Global_Business 461192 crore (US$68 billion) (31 March 2015)

Total Deposits 255388 crore (US$38 billion) (31 March 2015)

Total Advances 205804 crore (US$30 billion) (31 March 2015)

Total
6933966 lakh (US$10 billion) (31 March 2015)
Investments

Total Assets 30313525 lakh (US$45 billion) (31 March 2015)

Capital 66206 lakh (US$97 million) (31 March 2015)

Reserves &
1239672 lakh (US$1.8 billion) (31 March 2015)
Surplus

Operating Profit 4007 crore (US$590 million) (31 March 2015)

Net Profit 1523 crore (US$220 million) (31 March 2015)

Domestic
225402 crore (US$33 billion) (31 March 2015)
Deposits

Domestic CASA 63671 crore (US$9.4 billion) (31 March 2015)

Domestic
165153 crore (US$24 billion) (31 March 2015)
Advances

Global Gross
6442 crore (US$950 million) (31 March 2015)
NPA

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Global Net NPA 3843 crore (US$570 million) (31 March 2015)

Ret'n
Assets(%)Annua 0.58% (31 March 2015)
lzd

Book
197.24 crore (US$29 million) (31 March 2015)
Value/Share

Customer base Over 32 million (2013–14)

Employees 27222

Domestic
3682
Branches

Metro Branches 682

Urban Branches 783

Semiurban
936
branches

Rural Branches 1150

Overseas
1
branches

International
2
Business Centres

ATM 3570 as on 20/08/2015

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Syndicate Bank is one of the oldest and major commercial banks of India. It was founded
by T M A Pai, Upendra Pai and Vaman Kudva. At the time of its establishment, the bank
was known as Canara Industrial and Banking Syndicate Limited. The bank, along with 13
major commercial banks of India, was nationalised on 19 July 1969, by the Government
of India.

March 2015 Data

Business
The business with a capital of 8000 rupees. T M A Pai, Upendra Pai and Vaman Kudva
strove together to set up the bank. The first branch of the bank started its operations in
1925 at Udupi, in Dakshin Kannada district in Karnataka state. By 1937, it had secured
its membership as a clearing house at Mumbai. The primary objective of the business was
to extend the financial assistance to local weavers. Initially, the bank collected as low as
two annas from the door steps of the depositors daily through its agents. This type of
system wherein the agents of the bank come doorsteps to collect deposit is still prevailing
in India and is referred to as the Pigmy Deposit Scheme

Syndicate Bank in Eastcheap - geograph.org.uk - 1715195

to know more about Syndicate Bank products & services we may install SYNDGUIDE
app on your mobile

Mergers

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As time progressed, twenty banks merged with the Canara Industrial and Banking
Syndicate Limited including the Maharashtra Apex Bank Limited and Southern India
Apex Bank Limited. The name of the bank was changed to Syndicate Bank Limited in
1964 and the head office of the bank was shifted to Manipal. The bank expanded its
operations not only on the domestic front but also overseas. It has a branch in London
and the bank manages National Exchange Co. in Doha and Musandam Exchange Co. in
Muscat. By 1978, it opened its 1000th branch at Hauz Khas, Delhi. Currently it has over
3500 branches and all branches are offering corebanking-e-banking services under
anywhere-anytime-anyhow banking. Syndicate Bank has one branch in London, United
Kingdom.

Regional Rural Banks

Syndicate Bank sponsored the first regional rural bank in India by name Prathama Bank,
in Moradabad district Uttar Pradesh on 2 October 1975. The stocks of the Syndicate Bank
are listed on Bombay Stock Exchange, National Stock Exchange, Mangalore Stock
Exchange and Bangalore Stock Exchange. Syndicate Bank made a partnership with
UNEP to initiate a successful solar loan programme. It is a four-year $75855.6 million
effort, launched in April 2003 to help accelerate the market for financing solar home
systems in southern India. Presently, the bank is sponsoring 3 RRBs and all are profit
making having total business of Rs.42101 crore with 1348 branches as on 31.03.2015.

● Prathama Bank
● Karnataka Vikas Grameena Bank
● Andhra Pragathi Grameena Bank

In the news
.

● Recently, Syndicate Bank has achieved a rare feat of opening one million customer
accounts in a span of 3 months.
● Public sector lender Syndicate Bank on 31,August,2009 said Vasant Golecha Jain has
been appointed as chairman and managing director till 29 February 2012.
● It has also sponsored a regional rural bank in Karnataka called Karnataka Vikas
Grameena Bank(formed after amalgamation of four other RRB's) which stands fourth
in India.
● It has introduced five new products namely SyndDoctor, SyndGranite, SyndTextiles,
SyndCashew and SyndTransport on its 88TH FOUNDATION DAY, besides opening
88 new branches.
Bank has been conferred "Best Bank Award" amongst all the Banks in
the RSETI movement by Sri Jairam Ramesh, Hon’ble Minister for Rural
Development, Government of India. Bank has been awarded Banking Excellence Award
2013 for the second best public Bank in overall performance by State forum of Bankers
13
Club Kerala. Bank has been awarded for Record Breaking Performance during Synd LIC
Saptah (2 to 7 December 2013) by marketing 15119 policies Highest by any of the
Bancassurance Partners during a week by Life Insurance Corporation of India
As part of a Bank’s brand building exercise and to harness its image, Bank has
repositioned its Logo by changing the colour combinations. The combinations of Orange,
Yellow, Black & White colours give uniqueness to the Logo. The repositioning of logo is
aimed at providing a more clear understanding for which the organisation stands for,
build loyalty from customers, establishing a brand identity, and also to provide a more
contemporary look to its logo in a continuously changing & dynamic business
environment.
Bank is recruiting around 3000 young officers to replace retiring officers.

Branch Expansion
Bank has opened many new branches during the year and reached a mile stone of 3702
branches as of 1 March 2016 (including a branch in London): 1150 Rural, 936 Semi
Urban, 783 Urban and 682 Metro Branches. Bank has presence in all the States and
Union Territories of the country.

Financial Inclusion
● Bank has opened 103.844 lakh Basic Savings Bank Deposit Accounts
(BSBDA) as on 31.03.2015. Of which 6.058 lakh accounts were opened during the
quarter ended as on 31.03.2015. The balance outstanding in these accounts is Rs. 3611.81
crore as on 31.03.2015 (103.793 lakh accounts).

● To promote financial literacy in the villages, 14196 financial literacy

programmes were organized during the year upto 31.03.2015, in which 5.74 lakh persons
were benefitted.

● Bank has opened 3496559 number of accounts under PMJDY with a balance
of Rs. 505 crore as at 31.03.2015.

● 3350302 RuPay Cards have been issued under PMJDY as at 31.03.2015.

Capital Planning
● Government of India infused Rs.460 crore capital (including premium) in March 2015 by way of
preferential allotment of 3,74,74,541 equity shares at issue price of Rs.122.75 per share.

● Bank has raised Unsecured Non-Convertible Redeemable Basel III compliant Tier II bonds (of 10years) of
Rs.1150 crore during FY 2014-15, in two tranches. Rs.750 crore at coupon rate of 8.95% p.a in December
2014 & Rs.400 crore at coupon rate of 8.75% p.a during March 2015.

14
Corporate Tie Up
Bank has entered into strategic tie-up with the following Corporates:-

● Bank had signed a Memorandum of Understanding (MOU) with M/s SBI Life
Insurance Co. Ltd. on 30 March 2015 for providing Group Life Insurance cover to
Education Loan Borrowers of the Bank.

● Bank has a Corporate Agency tie-up with M/s TATA-AIA Life Insurance Co Ltd. on
30 March 2015 for providing Group Life Insurance cover to Housing
Loan borrowers of the Bank on optional basis.

● Bank had signed a Memorandum of Understanding (MOU) with LIC for

implementation of "Pradhan Mantri Jeevan Jyoti Bima Yojana". In this, LIC will
provide life insurance cover of Rs.2 lakh in case of death of the insured person at
nominal premium of Rs.330 per annum.

Corporate Strategies
● To attract retail investors in the pursuit of tax savings and to take advantage of the
available opportunity, Bank has recently launched a campaign titled "Save Tax – Get
Relaxed" from 1 January – 31 March 2015. This campaign was designed to increase
business of the Bank under Core Term Deposits, Life Insurance Policies from LIC of
India, ELSS option of Mutual Funds and Mediclaim polices of the Bank.

● In order to provide impetus for growth and to increase growth in potential branches,
Bank has selected 55 STAR branches to tap business in line with corporate vision to
achieve a level of Rs. 10 lakh crore businesses by 31.03.2020. All these branches will
be provided good amenities at branch premises for customers.

● Bank had launched a special SIP campaign titled "SYND Mutual Funds –SIP
Campaign" with all the nine Mutual Fund Companies, covering all the asset classes
i.e. Equity, Debt and Hybrid. The objective of the campaign was to increase the
penetration in Mutual Funds business and build the SIP book along with Asset under
Management (AUM) for the Bank. 3233 SIP Folios were created with a monthly SIP
amount of Rs.34.64 lacs in various schemes.

Going Forward
● Bank is planning to open 355 new branches during FY 2015-16 and also to recruit
5000 personnel in clerical and official cadre. Bank has planned to open 8 "State of the
Art Branches" and 100 "Fast Track branches" in the near future.
15
● The Bank has opened 37 mid-corporate branches till now. Another 13-14 branches
will be opened in the next two to three months.

● In order to augment long term resources and further strengthening of the Capital
Base, Bank proposes to raise Equity Capital by way of Rights Issue /QIP
(Domestic/Foreign) / Follow on public issue based on market conditions and
approach the market for Basel III compliant additional Tier I bonds and Tier II bonds.

1.1.5 Banks Transformation

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Colour Pattern of our Banks Logo

The Bank has undertaken a comprehensive exercise on changing the back-

ground colour/ repositioning of the Logo of the Bank. The repositioning of the
Logo has been done with major changes in the basic colour retaining the
picture of "DOG", symbolizing the tradition of faithfulness and friendliness.

The pictorial dog of the Logo is in sync with our Bank motto -'Faithful and Friendly'. The combination of Orange,
Yellow and White colours give uniqueness to our Logo

Orange

Orange is a Unique colour which denotes power, energy, enthusiasm and creativity, thoughtfulness and sincerity. It is
warm, vibrant and flamboyant colour. It is energy combined with fun, the colour of the risk-taker the extrovert and
the uninhibited. In color psychology it means adventure, optimism, self-confidence and sociability.
More gentle than red, orange represents a more feminine energy and the energy of creation.
In a nutshell, orange indicates Bank's Vibrancy, competency and confidence to reach the next horizon of business.

Yellow

Yellow,The colour that relates to acquired knowledge. It is the colour which resonates with the left or logic side of
the brain stimulating our mental faculties and creating mental agility and perception. Being thelightest hue of the
spectrum, the colour psychology of yellow is uplifting and illuminating, offering hope, happiness, cheerfulness
and fun. Yellow is the best colour to create enthusiasm for life and can awaken greater confidence and optimism.
Yellow helps with decision making as it relates to clarity of thought and ideas. Yellow is non-emotional, coming from
the head rather than the heart.
17
Yellow indicates innovation, backing the vibrancy and quick decisions through collective work and thinking.
Our Bank, with its large network of branches and dedicated human capital has an ambitious goal of achieving higher
level of business with the contribution from each and every Syndian with utmost honesty, perfection and commitment.
Our endeavour shall be to make this possible by way our team work supported by the New Brand Identity.

1.1.3 History
Syndicate Bank started in 1925 from a small village in Udupi to its new hi-rise and
hi tech Corporate Office in Bangaluru, is a saga of vision, enterprise, financial prudence
and corporate governance.

In 1925, 3 persons Shri. U A Pai, Shri Vaman Kudwa and Shri TMA Pai with a
vision to serve society, set up the Syndicate Bank.

In 1969 Syndicate Bank was nationalized along with 13 other banks. In 1971 it
established its 1st overseas branch in London (UK).

Syndicate Bank is one of the top six PSBs of India.

It has nearly 66% rural branches which is serving our nation in the aspects of financial
inclusion.

The Bank has its own self developed in-house application. Syndicate Bank is the first bank
in India to introduce CBS (Core Banking Solution) and hence centralized computerization.

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Table 1.1Key Business Indicators of Syndicate Bank

19
Table 1.2 Equity value of Syndicate Bank

20
 Equity Holdings of Syndicate Bank

Branch Network (2015)

Area No. of Branches
Metro 675

Urban 813

21
Semi-Urban 998

Rural 1215

Total (Indian) 3701

Foreign (Overseas) 1
Total (Global) 3702

22
23
1.2 Objectives of project:

1. To find the business/ demand trends in branch area

- Understanding the demographical background of the area and monitoring

current trends and competition.

2. To explore the factors used in business development strategy planning process.

- Various factors including strength, weakness, opportunity & threat (SWOT).

3. To explore business development strategy of the branch.

- Formulating strategic objectives by analysis of :

● What do we do?
● For whom do we do it?
● How do we excel?

1.3 Research Methodology:

● Data and information collected from various departments, staff, customers, Annual
report of bank, and website of bank are explored and analyzed.

● Information so collected put into pattern and observation so gathered analyzed by

using SWOT analysis.

24
 ● Other Bank’s branches situated in the same area have been taken as samples and
methodology adopted by them analyzed.

● Finally a report prepared.

Chapter 2
Analysis

Chapter 2

Analysis

2.1 Branch analysis

Table 5. Branch Profile
Name of Branch Gurgaon Main
BIC 8210
MICR 110025103
REGIONAL OFFICE FARIDABAD
STATE HARYANA

Area classification URBAN

Category of branch Scale-V
Branch Head Mr. K.S. Karunakara
Branch opening year June, 1970
CBS since 2005

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 Services / Facilities available Deposit products
Credit products
Remittance
Clearing Services
Safe Deposit Vault
ATM, ATM Cash
Deposit Machine

Authorized to handle Govt. business

Third party products

Services unavailable Forex business

PPF
Business of our Branch at the time of joining (04 January 2016) , figures in crores

S.B. Total 105.11

Current Deposits 15.37

Pigmy Deposits 32.28

Total Deposits 247.85

Total Advances 63.84

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 Total NPA 1.84

Income 7.68

Non Interest Income 0.36

Total expenditure 12.63

Business of our Branch till date (01 March 2016), figures in Crores

S.B. Total 107.71

Current Deposits 14.89

Pigmy Deposits 31.85

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 Total Deposits 248.72

Total Advances 85.22

Total NPA 1.21

Income 9.39

Non Interest Income 0.82

Total expenditure 15.35

Difference in Business of our Branch between (01 March 2016 & 04 January 2016),
figures in lakhs

S.B. Total 260.54 +2.48%

Current Deposits 48.09 +3.31%

Pigmy Deposits (-)42.97 - 1.33%

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 Total Deposits 86.52 +0.35%

Total Advances 2137.37 +33.48%

Total NPA (-)62.68 -33.96%

Income 171.29 22.30%

Non Interest Income 45.93 126%

As we can clearly see that the business of the branch has grown tremendously and
the branch is progressive immediately after the arrival of AGM Mr. Karunakara.

The current scenario of my branch helped me to choose this topic of Business

Development for my project report completion.

Technological developments in Gurgaon Main Branch (as on 29/02/2016)

Overall national
rank among 3701
Service Number of users
branches of
Syndicate Bank

Internet Banking 1776 58

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 SMS Alerts 1902 79

Mobile Banking 216 264

Missed Call Banking 101 377

Synd e-Passbook 134 150

Online User creation 10 600

Online resetting of IB
53 199
p/w

Most popular products in various departments of Gurgaon main Branch

1) CASA DEPTT.
Savings Bank A/c Metro Urban product code 201
180-200 deposits in CASA on daily average basis.
120 withdrawals from CASA on daily average basis.
Nearly 20 new chequebooks are issued daily.

2) Term Deposit Deptt.

Fixed Deposit product VCC product code 405 is most popular.
30
 Along with 405, 456 and 401 are also common among customers.

3) Remittance ATM Deptt.

DD – 10 to 15 Daily
NEFT/RTGS – 25-30 Daily
10 new ATM requests daily
ATM cash reload- Rs.35 Lakhs weekly

4) Clearing and Pigmy Deptt.

100 cheque booking daily.
200 other branches cheques for CTS scanning.
ECS 40-50 daily
Lockers 2 customers for operation on an average.
Pigmy 2300 accounts.

5) Loans/Advances Deptt.
Synd Nivas Home loan : Rs. 4 Crores
WCL:- Rs.35 crores
Retail loans :- 40 lakhs
Rest Term Loans:- Rs. 45 crores

2.2 Market analysis

Owing to the rising employment opportunities and opening of numerous regional

and state level offices, banks, IT Sector Companies, Defence Bases and Real
Estate Business the city witnessed a rapid influx of employment seeking migrants
especially in last 10-12 years.

Gurgaon
सससससससस
सससससससस

31
 Metropolis

Gurgaon viewed from NH8

Nickname(s): Millennium city

Gurgaon
Location of Gurgaon in Haryana

Coordinates: 28°27′22″N 77°01′44″ECoordinates:

28°27′22″N 77°01′44″E

Country India

State Haryana

District Gurgaon district

Government

32
 • Body Municipal Corporation of
Gurgaon

• Mayor Vimal Yadav

• Lok Sabhaconstituency Gurgaon Lok Sabha Constituency

• Vidhan Sabhaconstituency Gurgaon City

• Planning agency Haryana Urban Development

Authority

Area

• Total 282.7 sq mi (732 km2)

Elevation 711.9 ft (217 m)

Population 876,824[1]

Languages

• Main spoken Hindi

Time zone IST (UTC+5:30)

PIN 122001

Area code(s) 0124

Vehicle registration HR-26 (North)

HR-55 (Commercial)
HR-72 (South)
HR 76 Pataudi (Gurgaon)

Website gurgaon.nic.in

2.3 SWOT Analysis of the Branch:

It is an analysis which depicts the true position of the firm in terms of Competition and
prepares the firm for future endeavors.

33
It starts by Stating the

● Strengths(S) on which the Company can bank upon and moves forward followed by

● Weakness (W), which they need to cover under the belt of Strengths, then

● Opportunities (O) which the companies can grab from the mouth of the competitor

● Threats (T) which act as a Warning Signals from their rivals.

Figure 2: Swot Analysis

SWOT Analysis is prepared on the basis of results arrived from different Statistical
techniques. Techniques include:

● Interviews,
● Expert Opinions,
● Pilot Surveys and
● Customer Feedback and Secondary sources
34
2.3.1Findings under each of the head of the Analysis are:-

1. Strengths
● Advantages Bank/Branch have:
▪ Urban area branch
▪ Prominent city location giving ample opportunities to receive
business like, Real estate business and proprietorship and Partnership
Company.
▪ The main sadar bazaar is nearby, huge potential of deposits and advances is
there.
● Importance of the Customer for Bank/Branch:
▪ High
▪ Customer is everything for a Bank.
▪ Relationship with some customers is too old and warm that we don’t have to
rush through our MIS data because we are already much aware about them
personally.

2. Weakness

● Factors responsible for the loss of sales/revenue:

▪ Longer period of clearance of requests in pension week.
▪ Higher rate of interest on deposits in nearby other bank’s branches.
▪ Shortage of clerical staff.

● The technical snags for Bank/Branch which creates dissatisfaction in

customers:
▪ Link failed
▪ Slow Connection

3. Opportunities

● Good opportunities in Bank/Branch way:

35
 ▪ Huge existing customer base(CASA is very good)
▪ Business area is well developed and still growing
▪ Large number of service men are here.
▪ Improved demographical condition of area provides a great chance to enrich its
various product basket.

4. Threats

● Presence of the Competitors:

▪ Big players like State Bank of Patiala, Canara Bank, State Bank of
India, IndusInd Bank, ICICI Bank, HDFC bank, and Indian Overseas
are situated near branch area.

▪ With the emergence of larger number of players in the Banking

Industry, the switching cost of the buyer has gone done significantly.
The onus is now on the effectiveness and speed with which the
services are provided to the customers.

36
 Chapter 3
Findings and Business development strategy

Chapter 3

Findings / Business development strategy

3.1 Setting strategic objectives

On the basis of SWOT analysis done of the branch we first have to set the strategic
objectives in the below form:

Factors to be Objective of strategy

consider

Product Features of service offering like various types of deposit and loans as
per customer’s requirements.

Price Interest Charges, Discount, Fees and Commission must be

competitive.

Place Branches, ATMs, Mobile And Internet Banking for affordability,

quality & convenience, smooth & error free CBS (Core Banking
Solutions).

Promotion To create awareness and improve attractiveness of product & services

offered by Bank in customer’s mind.

People Establish a nice & customer friendly approach by Bank branch

employees. As their behavior is a significant factor in the service

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 quality of Banks which is considered a prime factor in the Bank
selection criteria by customer also.

Process The process of a transaction contains Time, accuracy and convenience.

Customer must feel delighted after getting a transaction processed.

Physical This is a highly rational part of Banking services. These are to attract
environment potential customers towards Bank and to retain existing.

3.2 Formulation of strategy for Business Development:

3.2.1 Product

Objective of strategy:

The strategy involves offering of services, like various types of deposit and loans as
per customer’s requirements.

Strategy to achieve objective:-

● Use of data mining techniques:

A customer may have purchased a single product or multiple products from a bank.
Using a little sophistication of data mining techniques, we would be able to build a targeting
model or a response model on customer base. A response model is a predictive model
which estimates the future behavior of a given customer even before it occurs. Even with
a fair amount of accuracy it can be very useful for Branch in saving majority of costs in
various departments/channels.

For example: A customer has savings account in a bank, based on the information given
to the bank along with account status and history, we could target her as a prospect for a
personal loan product based on a logic / algorithm.

The logic / algorithm could be as simple as if a customer from urban area with account
balance of Rs 1,00,000 or more for over 6 months should be a prospect for home loans Rs
20,00,000 or personal loans over Rs 3,00,000.

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3.2.2 Price

Objective of strategy:

Interest Charges, Discount, Fees and Commission must be competitive.

Strategy to achieve objective:-

● These factors are decided on macro level, which are not in the hand of branches to
change. Hence no strategy can be formulated to be price competitive.

3.2.3 Place

Objective of strategy:

Branches, ATMs, Mobile and Internet Banking for affordability, quality & convenience,
smooth & error free CBS (Core Banking Solutions).

Strategy to achieve objective:-

⮚ Implementation of project:
Major changes & benefits under this project are:

● Sales and service focus: “

▪ More efficient service
▪ More convenient options for transactions
- ATM, Internet kiosk in branch premise etc.
▪ Better facilities at branches
- Queue management and Cheque Deposit Machines.
▪ Improvement in branch productivity on sales
▪ Best-in-class service levels for customer delight
▪ Redesign & simplification of front and back office processes and roles
to reduce turnaround time and avoid duplication
▪ Reduction in operating costs.

All these steps will provide opportunity for better utilisation of resources in sales and
service, for higher revenue generation and greater customer delight.

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3.2.4 Promotion

Objective of strategy:

To create awareness and improve attractiveness of product & services offered by Bank in
customer’s mind.

Strategy to achieve objective:-

⮚ Mass media is considered best for Banking-

● Hoardings of latest schemes of deposit & credit products should be placed
on public places like railway station, shopping area.
● Advertisement in local daily newspaper on regular basis.

⮚ Organizing public event like customer meet in branch.

⮚ Personal selling-
● By branch staff as an advice to customers.

⮚ Direct marketing-
● By targeting employees of organizations like:
▪ Government organizations

3.2.5 People

Objective of strategy:

Establish a nice & customer friendly approach by Bank branch employees. As their
behavior is a significant factor in the service quality of Banks which is considered a prime
factor in the Bank selection criteria by customer also.

Strategy to achieve objective:-

● Awareness of products & services offered by branch through branch meetings, new
product training programs.

● Knowledge of correct rules & practices followed in customer dealing to offer error
free services.

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3.2.6 Process

Objective of strategy:

The process of a transaction contains Time, accuracy and convenience. Customer must feel
delighted after getting a transaction processed.

Strategy to achieve objective:-

● Reduce turnaround time for every process by allocating work to staff as per the
skills and situation.

3.2.7 Physical environment

Objective of strategy:

This is a highly rational part of banking services. These are to attract potential customers
towards Bank and to retain existing.

Strategy to achieve objective:-

1. Using model for branch transformation into a well maintained workplace to

facilitate:
● Smooth work flow
● Greater customer satisfaction
● Efficient way of customer handling
● Create a new nice image of bank in customer’s mind.

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 Chapter 4
Our new Facebook page

To connect with our customers and potential customers on social media, I have
created a new facebook page with name, “Syndicate Bank Gurgaon Main”.

Link: http://www.facebook.com/syndicatebankgurgaon

We got a good response of this page. Till date there are more than 160+ likes in
just 25 days of its inception.

This initiative helped us to promote various products and services such as synd-e-
passbook, mobile banking, internet banking, gold bonds, lockers, synd guide, etc.

Moreover this page helped us to build a brand among customers to have a social
media presence.

Syndicate Bank Gurgaon is the first bank and first branch of Gurgaon to have its
own facebook portal for our customers.

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Screenshots:

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 Chapter 5
Conclusion

Banking in current scenario is very competitive due to presence of several others

banks in the same area. This situation forces each bank branch to think, analyze and
formulate its own strategy to increase its business as well as retain its existing customers.
But with opportunities also there are challenges in form of presence of many big banks
including public & private banks. To beat these challenges and tap the opportunities branch
has to seriously follow the strategies for business development.

The strategies suggested in this project report are based on the SWOT analysis of
the branch. The strategies show the importance of seven factors including: Product, Price,
Place, Promotion, People, Process and Physical environment of branch. These factors are
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highly rational part of banking services. These are to attract potential customers towards
Bank and to retain existing. Also they help in efficient utilization of the same resources for
selling more products by using techniques like cross selling, personal selling etc.

These all has been possible due to dedicated workforce of who has mainly
concentrate toward SUSTAINABLE BUSINESS MODEL of Bank.

So the Branch strategy should mainly concentrated over the SUSTAINABLE BUSINESS
MODEL of Bank and business should be on retail segment. Retail growth gives a
sustainable growth in contrast to bulk business which is quite susceptible to high risk.
Hence the branch should mainly concentrate on retail growth as Assets & Liability
products.

The bank is situated in residential cum business area. It provides a very good scope for
retail business. The focus should be to more strategy which is adoptable to the competitive
changing environment of high level of competition

Use of these strategies will ensure better customer satisfaction and higher revenue for the
branch. This will lead the way for bank “To be a top ranking National Bank of International
Standards committed to augmenting stake holders' value through concern, care and
competence”.

Bibliography:

⮚ Reports and other materials available in branch for branch profile analysis.

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⮚ Special thanks to Mr.Vijay Singhal, Assistant Manager who provided me a lot of
information about the bank and the branch.

⮚ Websites:

● www.syndicatebank.in
● www.wikipedia.com

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