First PSU bank who offers Limitless credit card

Public Sector Syndicate Bank has launched the Rupay Version of Credit Card  i.e. Rupay Select Card. Syndicate Bank Rupay Select Credit Card, will facilitate the segmentation of the Credit Card product to attract High Net Worth (HNI) Customers requiring higher Credit Limit. No Upper Limit for Syndciate Bank Select Rupay Credit Card with Rs 10,00,000 Insurance coverage by NPCI Free of Cost.

SyndicateBank Rupay Select Credit Card is offering a bunch of welcome offers in association with the NPCI. The Rupay Select Credit Card is having minimum Rs 1 lakh limit with no Maximum Limit. The transaction fees on Rupay Select Credit Card will be much lower than the competitors like MasterCard & VISA.It would lead to lower cost of clearing and settlement and will drive usage of cards in the industry.

Syndicate Bank Rupay Select Credit Card is having following features:

Minimum Credit Limit  – Rs 1,00,000

Maximum Credit Limit – None

Issuance Charges – Free

Syndicate Bank Rupay Select Credit Card Offers

Welcome Offers : 

Syndicate Bank Rupay Select Card is offering vouchers & Discount Coupons on issuance of Card. Few of these are :

• Rs. 500 Gift Voucher from Croma (infiniti Retail Ltd)
• Discount Coupon from Apollo Pharmacy.
• Snapdeal Offer – Rs. 100 off on first two transactions.

Rupay Select Cash Back Offers

5% cash back on payment of Utility Bills-  applicable for both online and POS terminals with maximum discount of Rs. 50/- per month

Free Lounge Access

Domestic Airport – Two free access per quarter – covers 30 lounges across 11 cities in India

International Airport – Four Free Access per Year – covers 500+ lounge across 300+  cities worldwide.

Insurance Coverage at No Cost

Rs. 10.00 lakh cover for Death Due to Personal Accident and Permanent Disability effective after card is activated by doing the transaction. The Premium for the insurance coverage will be  borne by NPCI. 

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Syndicate Bank reported huge net loss in Q2 on higher bad loan provisions

State-owned Syndicate Bank Wednesday reported a net loss of Rs 1,542.54 crore in second quarter ended September 30, mainly due to rise in provisioning for bad loans. The bank had posted a net profit of Rs 105.24 crore in the same quarter of the previous fiscal. Its net loss stood at Rs 1,281.77 crore in the first quarter this fiscal.

Total income of the bank also fell to Rs 5,888.87 crore for the reported quarter, as against Rs 6,419.21 crore in the same period a year ago, Syndicate Bank said in a regulatory filing.

The bank's bad loans rose for the quarter with gross non-performing assets (NPAs) hitting 12.98 per cent of the gross advances at September-end 2018 from 9.39 per cent at the same time in 2017. Net NPAs also rose to 6.83 per cent as against 5.76 per cent a year ago.

In value terms, the gross bad loans (or NPAs) stood at Rs 27,131.14 crore as on September 30, 2018 as against Rs 20,176.64 crore by end of September 2017. Net NPAs were at Rs 13,321.30 crore as against Rs 11,894.30 crore. Thus, the provisions for bad loans during the quarter rose to Rs 1,622.46 crore in this fiscal from Rs 734.64 crore for the same quarter of 2017-18.

The overall provisions and contingencies was at Rs 2,217.26 crore for the quarter, up from Rs 891.16 crore a year ago. Provision coverage ratio was at Rs 64.02 per cent as on September 30, 2018, the bank said.

Meanwhile, the board also approved increase in the limit to raise capital up to Rs 500 crore by issuing and allotting up to 30 crore equity shares to eligible employees under Employee Stock Purchase Scheme (ESPS), the bank said.

"This includes the earlier approval of the shareholders in the extra-ordinary general meeting held on October 29 to raise capital aggregating to Rs 250 crore by issuance and allotment of 9 crore equity shares," it added. 

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PNB and Canara bank were on government's list for next merger, with which bank?

Bank of Baroda’s healthier financials, strong brand, technology and international presence helped the finance ministry settle for it as the anchor for an amalgamation with Dena bank and Vijaya Bank, instead of Canara Bank and Punjab National Bank, among others, which were considered for carrying forward the first consolidation exercise in the public sector space.

PNB was ruled out as its recovery is seen to be a few quarters away after a Rs 14,000-crore fraud, allegedly orchestrated by Nirav Modi and Mehul Choksi, leaving Canara Bank as the other option to anchor the amalgamation. But it was seen to be weak on a few financial parameters. Besides, the new entity would have been focused more on south India.

Financial services secretary Rajiv Kumar said, “We did not want consolidation for the sake of it. The first guiding principle was to create a healthy bank that was large in size. The second principle was to have an entity that had a strong brand, technology and a good reach.”

The merger of the three banks is one of the many ways through which the government is trying to deal with the bank NPA crisis. The merger of three banks clearly unveils a formula -  that the government decided to merge the three banks in accordance with their financial health. Among the three, Bank of Baroda has least NPA problem, followed by Vijaya Bank and Dena Bank. The bank merger formula, thus, will be Very big bank+ better bank+worst bank. 

In Dena bank, Vijaya and BoB, the government found the right fit. “Dena bank has a strong CASA base with a good retail and MSME presence. Vijaya Bank has been sensible in its lending, while BoB offers a good international presence, a strong brand and a good tech platform. It’s a win-win deal for the three banks and will result in a massive cost rationalisation,” the secretary added.

While consolidation has been on the government’s radar, the fraud at PNB pushed back the plan by a few months. But it has been in the making for at least four-five months, with the team at the department of financial services looking at various permutations and combinations. A source said, “It was an in-house exercise. Secrecy had to be maintained at all costs.”

Two sets of probable bank mergers in future. It said that the government is mulling the merger of more banks. However, this year there will not be any further merger as the amalgamation of the first lot of three banks will itself take 3-6 months. 

1. Punjab National Bank, Indian Bank, Indian Overseas Bank

The current business of PNB, Indian Bank and Indian Overseas Bank range in Rs 10,45,650 crore, Rs 3,74,550 crore and Rs 3,61,928 crore respectively. The deposits in three banks are Rs 630311 crore, Rs 210170 crore, Rs 213168 crore respectively. 

The Net NPA of PNB is 10.58%, Indian Bank 3.80% and Indian Overseas Bank 15.10%. The number of branches of these three banks are 6,993, 2,819 and 3,326 respectively. 

2. Canara Bank, Syndicate Bank and UCO Bank 

The total business of Canara Bank, Syndicate Bank and UCO Bank is Rs 8,63,359 crore, Rs 4,74,976 crore and Rs 2,76,784 crore respectively. Deposits in the three banks are Rs 5,00,866 crore, Rs 4,05,939 crore and Rs 1,78,211 crore.

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Syndicate Bank Q1 net loss widens nearly 5 times, NPAs soar

State-owned Syndicate Bank today said its net losses have widened to Rs 1,281.77 crore during first quarter ended June of the current fiscal as bad loans rose. 

Its loss in the corresponding April-June period of 2017-18 was at Rs 263.19 crore. Its income also fell to Rs 5,637.51 crore during the June quarter of 2018-19, as against Rs 6,171.49 crore a year ago. 

The bank said in a regulatory filing that its interest income fell to Rs 5,257.19 crore, from Rs 5,484.13 crore. Besides, there was significant fall in interest earned on balances with RBI and other inter bank funds. 

The asset quality was dented further to 12.59 per cent of the gross non-performing assets (NPAs) or bad loans as on June 30, 2018 from 9.96 per cent a year ago. 

It was 11.53 per cent in the preceding quarter ended March. Net NPAs too worsened to 6.64 per cent, from 6.27 per cent as on June 30, 2017 and 6.28 per cent by end March this year. In value terms, the gross NPAs stood at Rs 26,361.52 crore at June 30 this year, as against Rs 20,183.85 crore a year ago. 

Net NPAs were at Rs 13,010.80 crore vis-a-vis Rs 12,188.30 crore."Based on legal opinion given by an independent expert, pending issuance of final NCLAT order, an amount of Rs 100.86 crore recovered in an NPA account is considered as eligible credit for the calculation of NPA provision," Syndicate Bank said in the filing. 

Due to rise in portion of bad loans, the bank parked aside a higher provisioning amount for NPAs at Rs 1,774.11 crore in June quarter, as against Rs 1,385.66 crore a year ago. Overall provisioning and contingencies were at Rs 2,326.82 crore, up from Rs 1,333.88 crore. 

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Syndicate Bank reports huge net loss in Q4 due to higher provisioning

Public sector lender Syndicate Bank today reported a net loss of Rs 2,195.12 crore in the last quarter ended March 31, due to high bad loans that required higher provisioning.

The bank had posted a net profit of Rs 103.84 crore in the corresponding January-March quarter of 2016-17. In December quarter, there was a net loss of Rs 869.77 crore.

The bank's provisioning requirement for bad assets were raised by nearly three times during the March quarter to Rs 3,544.68 crore as against Rs 1,192.54 crore in the same period previous fiscal, it said in a regulatory filing.

Income during January-March period came down to Rs 6,046 crore from Rs 6,913.09 crore earned in same period of previous fiscal. For the full year ended March 2018, the bank reported a net loss of Rs 3,222.84 crore against a net profit of Rs 358.95 crore in 2016-17.

Income for the year fell to Rs 24,581.85 crore from Rs 26,461.18 crore. The current MD and CEO of Syndicate Bank Melwyn Rego was last month booked by the CBI along with several others in the Rs 600 crore IDBI loan default case.

Rego has earlier worked as Deputy Managing Director of IDBI Bank.On consolidated basis, the Manipal-headquartered lender suffered a net loss of Rs 3,111.69 crore against net profit of Rs 517.45 crore a year ago.Full year provisioning for bad loans rose to Rs 7,620.08 crore from Rs 3,545.44 crore.

Asset quality of the bank worsened as gross non-performing assets (NPAs) hit 11.53 per cent of gross advances (Rs 25,758.60 crore) by end of March 2018 from 8.50 per cent (Rs 17,609.31 crore) as on March 31, 2017.Net NPAs grew to 6.28 per cent (Rs 13,239.46 crore) from 5.21 per cent (Rs 10,410.98 crore).

In respect of certain NPA accounts under Insolvency and Bankruptcy Code (IBC), the requirement of provisions is reduced from 50 per cent to 40 per cent. The bank, however, has maintained the provision at 50 per cent in respect of secured portion, it said.

Detailing about the NPA divergence for 2016-17, the bank said its balance sheet has witnessed a gap of Rs 2,336.70 crore in terms of gross NPAs (Rs 1,724.20 crore for net NPAs), while for divergence for provisioning it stood at Rs 612.50 crore.This divergence resulted in adjusted loss of Rs 253.55 crore for the fiscal ended March 2017.

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Syndicate Bank posts standalone net loss in Q3

Syndicate Bank posts standalone net loss at Rs869.8cr in Q3FY18 vs. net profit of Rs93.60cr yoy. Syndicate Bank's revenue for Q3FY18 declined by 9.3% yoy to Rs5,945cr. Its NII for the quarter came at Rs1,623cr as against Rs1,391cr yoy. The bank has reported net loss of Rs869.8cr for the quarter, against profit of Rs93.6cr reported in corresponding quarter last year. Its GNPA for Q3FY18 stood at 9.62% as against 9.39% qoq, which has increased by 23bps. NNPA for the quarter came at 5.44% against 5.76% qoq, which has declined by 32bps.

• The provision for the quarter came at Rs2,090cr as against Rs785cr yoy.
• Its capital adequacy ratio for Q3FY18 end stood at 11.88%.

Standalone Results Q3FY18: (Rs. in crore)

	Q3FY18	YoY (%)
NII	1,623	16.7
NPA (%)	9.6	93
Provisions	2,090	166.2
Net Loss (adjusted)	869.80	0

***NPA change is bps

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Syndicate Bank Probationary Officers (PGDBF) Recruitment 2018

Syndicate Bank, one of the oldest and major commercial banks of India,  is inviting online applications from young and bright graduates who fulfill the eligibility criteria specified and who are interested in a Banking career for admissions to the One year Post Graduate Diploma in Banking and Finance course in Manipal Global Education Services Pvt Ltd. (MaGE), Bangalore and Nitte Education International Pvt Ltd. (NEIPL) Greater Noida / Mangalore. There are 500 posts in total. The selection will be based on Online Test followed by Group Discussion or/and Personal Interview. On successful completion of the course within the stipulated time period, the candidates would be offered appointment in the bank as Probationary Officer in Junior Management Grade / Scale-I. You can apply online from 2nd January 2018 to 17th January 2018. Check below for more details.

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RBI levies penalty on one of PSB for breaching KYC norms

Syndicate Bank has emerged as the latest entrant on the Reserve Bank ofIndia's hit list for violation of norms.

The central bank on December 12 imposed a monetary penalty of Rs 5 crore on the public sector lender for violating the Know Your Customer (KYC)/Anti-Money Laundering (AML) norms.

This comes on the heels of RBI fining private sector lender IndusInd Bank Rs 2 crore for non-compliance of asset recognition norms.

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