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	{{Short description\|Commercial banking group located in India}}		{{Short description\|Commercial banking group located in India}}
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->Asilvering: Importing Wikidata short description: "Commercial banking group located in India" (Shortdesc helper)

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Importing Wikidata short description: "Commercial banking group located in India" (Shortdesc helper)

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{{Use Indian English|date=October 2015}}
{{Use dmy dates|date=September 2013}}
{{Infobox company
| name = Syndicate Bank
| logo = [[File:Syndicate Bank.svg|225px]]
| logo_caption = ''Faithful and Friendly''
| type = [[Subsidiary]] of [[Canara Bank]]
| traded_as = {{BSE|532483}} {{NSE|CANBK}}
| industry = [[Banking]] [[Financial services]]
| fate = Merged with [[Canara Bank]]
| successor = [[Canara Bank]]
| founded = {{start date and age|df=y|1925}} (as ''Canara Industrial and Banking Syndicate Limited'')
| founders = {{ubl|[[Upendra Ananth Pai]]|[[T. M. A. Pai]]|[[Vaman Srinivas Kudva]]}}
| defunct = {{End date|df=yes|2020|04|01}}
| location = [[Bengaluru]], [[Karnataka]], [[India]]
| key_people = {{ubl|T. N. Manoharan {{small|(Chairman)}}| L. V. Prabhakar {{small|(MD & CEO)}}}}
| areas_served = {{ubl|[[India]]|[[United Kingdom]]|[[Oman]]}}
| products = [[Finance and insurance]] [[Retail banking|Consumer Banking]] [[Commercial bank|Corporate Banking]] [[Investment Banking]] [[Investment Management]] [[Private Equity]] [[Mortgages]] [[Credit Cards]]
| revenue = {{decrease}} {{INRConvert|23949.22|c}} (2019)<ref name="Annual Report 2018-19">{{cite web|url=https://www.bseindia.com/bseplus/AnnualReport/532276/5322760319.pdf|title=Annual Report of Syndicate Bank }}</ref>
| operating_income = {{decrease}} {{INRConvert|2819.19|c}} (2019)<ref name="Annual Report 2018-19" />
| net_income = {{increase}} {{INRConvert|-2588.30|c}} (2019)<ref name="Annual Report 2018-19" />
| assets = {{increase}}{{INRConvert|31127894.86|c}} (2019) <ref name="Annual Report 2018-19" />
| equity =
| owner =
| num_employees = 34,054 (March 2019) <ref name="Annual Report 2018-19" />
| parent = [[Canara Bank]] (100%)
| ratio = 14.23% (2019) <ref name="Annual Report 2018-19" />
| homepage = {{url|https://www.syndicatebank.in/}}
}}

'''Syndicate Bank''' was one of the oldest and major commercial banks of India. It was founded by [[Upendra Ananth Pai]], [[T. M. A. Pai]] and [[Vaman Srinivas Kudva]]. At the time of its establishment, the bank was known as ''Canara Industrial and Banking Syndicate Limited''. It is a wholly owned [[subsidiary]] of [[Canara Bank]]. The bank, along with 13 major commercial banks of India, was nationalised on 19 July 1969, by the [[Government of India]]. The Bank was headquartered in the university town of [[Manipal]], India. On 1 April 2020, the bank was merged into [[Canara Bank]].<ref name="business-standard.com">{{cite web |last1=Reporter |first1=S. I. |title=Syndicate Bank, Oriental Bank gain on Cabinet nod for merger of 10 PSBs |url=https://www.business-standard.com/article/markets/select-psbs-gain-on-government-nod-for-merger-of-10-banks-into-4-120030500347_1.html |website=Business Standard India |access-date=6 March 2020 |date=5 March 2020}}</ref>

==History==
===1925 {{endash}} 1974===
[[File:Syndicate Bank at Lighthouse Hill Road in Mangalore.jpg|thumb|Syndicate Bank branch at Lighthouse Hill Road in [[Mangalore]]]]
Syndicate Bank was founded in 1925 in [[Manipal]], [[Udupi]], [[Kingdom of Mysore|Princely State of Mysore]]. The promoters came from a lower-middle class background and aimed to improve the socioeconomic status of the region. It was the only Indian bank with its headquarter in a rural area. The bank provided employment opportunities to the educated members of the local community. It had an initial paid-up capital of {{currency|8000|INR}}. It was unlike other banks which primarily financed trade and industries in urban areas. So as a new bank, Syndicate Bank decided to exploit the untapped [[small and medium enterprise]] and the agriculture sector.<ref name=Bhatt1989>{{cite book|author1=Vinayak Vijayshanker Bhatt|author2=Banco Mundial|title=Financial innovation and credit market development|date=1989|publisher=[[World Bank]]|pages=9–15|url=http://www-wds.worldbank.org/servlet/WDSContentServer/IW3P/IB/1989/08/01/000009265_3960928044848/Rendered/PDF/multi_page.pdf|access-date=28 April 2016}}</ref> Thus, Syndicate Bank was focussed on grassroot banking since the beginning.<ref name="Tsai2004"/>

In 1928, Syndicate Bank started the [[Pigmy Deposit Scheme]]. Under this scheme, banking agents travel to the doorstep of farmers and shopkeepers at set intervals to collect deposits. By 1960, 21% of the bank's net deposits came from Pigmy Deposits. Its unconventional practices had been criticised by the [[Reserve Bank of India]] (RBI).<ref name="Tsai2004">{{cite book|author=Kellee S. Tsai|title=Back-alley Banking: Private Entrepreneurs in China|url=https://books.google.com/books?id=kVlZM9SN3MUC&pg=PA240|date=1 March 2004|publisher=Cornell University Press|isbn=0-8014-8917-2|pages=239–240|access-date=28 April 2016}}</ref> Syndicate Bank used to encourage its employees to work as Pigmy Deposit agents, during their spare time. In 1962, RBI barred it from using its employees as bank agents.<ref name=Bhatt1989/>

In 1950, the share of Syndicate Bank in the banking business was negligible. In 1960, it rose to 1% and to 4% in 1975. In 1968, 32% of its branches were in rural areas, whereas only 22% of branches of the entire banking system were rural. Its loans to the agriculture and small enterprises sector constituted 30% of its total loans, for the other banks it was less than 8%. 90% of its accounts were small accounts i.e., below {{currency|1500|INR}}. In 1969, it was [[Banking in India#Nationalisation in the 1960s|nationalised]] along-with 13 other major banks.<ref name=Bhatt1989/> In December 1969, it had 350 branches, by December 1974, it had 700 branches.<ref name="Agarwal1991"/>

===1975 {{endash}} 2000===
In 1975, it established the first [[Regional Rural Bank]] (RRB) of India, Prathama Bank, in [[Moradabad]], [[Uttar Pradesh]].<ref name="Agarwal1991">{{cite book|author=Rakesh Kumar Agarwal|title=Evaluation of the Working of Regional Rural Banks: A Study of Prathma Bank of Rampur and Moradabad Districts of U.P|url=https://books.google.com/books?id=B6nAu0rsKikC&pg=PA16|access-date=28 April 2016|year=1991|publisher=Mittal Publications|isbn=978-81-7099-342-1|pages=1, 7, 16}}</ref> In 1976, Syndicate Bank sponsored the establishment of Malaprabha Grameena Bank in [[Dharwad]], [[Karnataka]]. In 1983, Bijapur Grameena Bank was sponsored by Syndicate Bank, headquartered in [[Bijapur]].<ref name="Kalkundrikar1990">{{cite book|author=Anil Baburao Kalkundrikar|title=Regional Rural Banks and Economic Development|url=https://books.google.com/books?id=qhUu_ZsABN0C&pg=PA2|access-date=28 April 2016|year=1990|publisher=Daya Publishing House|isbn=978-81-7035-074-3|pages=38 }}</ref> In 1984, it also founded Netravati Grameena Bank in [[Mangalore]] and Varada Grameena Bank in [[Kumta]].<ref name="Sivachithappa">{{cite book|author=Dr. K Sivachithappa|title=Regional Rural Banks and Development of Weaker Sections|url=https://books.google.com/books?id=o8GgBQAAQBAJ&pg=PA93|access-date=28 April 2016|publisher=[[Lulu.com|Lulu]]|isbn=978-1-304-23509-1|page=93}}</ref> By December 1986, it had 1456 branches.<ref name="Agarwal1991"/>

In the fiscal year 1996-97, it posted an accumulated loss of {{INRConvert|1003|c}} and a profit of {{INRConvert|20|c}}. In December 1997, K. V. Krishnamurti was appointed the Chairman and Managing Director (CMD) of the bank. He found the bank overstaffed which was lowering the [[workforce productivity|employee productivity]]. Krishnamurti stopped recruitments and encouraged [[voluntary redundancy|voluntary retirement]]. By 2000, the workforce had been cut by 2,777. The bank leveraged its 1,702 branches and introduced new schemes to mobilise low cost deposits. In the fiscal year 1999{{endash}}2000, it posted a profit of {{INRConvert|347|c}}.<ref name="High-BT">{{cite news|title=Syndicate Bank takes the high road|url=http://archives.digitaltoday.in/businesstoday/20000607/cf8.html|access-date=28 April 2016|work=Business Today|date=7 June 2000}}</ref>

In the fiscal year 1997-98, it was reported that Pigmy Deposits still contributed 15.6% of its domestic deposits and 5.6% of its global deposits.<ref name="Tsai2004"/> In October 1999, Syndicate Bank held its first [[initial public offering]] (IPO). It offered 12.5 [[crore]] equity shares worth {{INRConvert|125|c}} at [[par value|par]]. The IPO diluted the stake of the [[Government of India]] to 76%.<ref name="IPO-IE">{{cite news|title=Syndicate Bank to unveil Rs 125-crore IPO|url=http://expressindia.indianexpress.com/fe/daily/19991009/fex09042.html|access-date=28 April 2016|work=[[The Indian Express]]|date=9 October 1999}}</ref> In February 2000, it was reported that the bank had further reduced its staff strengthen by 2,400 in the preceding two years.<ref name="Axe-BS">{{cite news|title=Syndicate Bank Axes 2,400|url=http://www.business-standard.com/article/specials/syndicate-bank-axes-2-400-100021801004_1.html|access-date=1 May 2016|work=[[Business Standard]]|date=18 February 2000}}</ref>

===2001 {{endash}} 2020===
[[File:Syndicate Bank in Eastcheap - geograph.org.uk - 1715195.jpg|thumb|Syndicate Bank on [[Eastcheap]] in [[central London]], UK]]
In 2003, Syndicate Bank tied up with the [[United Nations Environment Programme]] (UNEP) to provide loans to purchase solar lamps.<ref name="harish2011redesigning">{{cite journal|author1=Santosh M. Harish|author2=Shuba V. Raghavan|title=Redesigning the national solar mission for rural India|journal=[[Economic and Political Weekly]]|date=2011|volume=46|pages=51–58|access-date=28 April 2016|url=https://www.researchgate.net/publication/259621028}}</ref> In December 2003, Syndicate Bank announced [[sabbatical leave]] scheme with partial pay to reduce its employee overhead.<ref name="Sab-BL">{{cite news|title=Syndicate Bank to offer Sabbatical|url=http://www.thehindubusinessline.com/2003/12/30/stories/2003123001801000.htm|access-date=28 April 2016|work=[[The Hindu Business Line]]|date=29 December 2003}}</ref>

In July 2005, it held its equity share offering. 45 million shares with the face value of {{currency|10|INR}} were offered at {{currency|46|INR}}-{{currency|50|INR}}.<ref name="SecondIPO-DB">{{cite news|title=Syndicate Bank fixes IPO price band at Rs.46-50|url=http://www.domain-b.com/finance/general/20050706_ipo.html|access-date=28 April 2016|work=Domain-B|date=6 July 2005}}</ref> In September 2005, the four rural banks in Karnataka sponsored by Syndicate Bank - Malaprabha Grameena Bank, Bijapur Grameena Bank (BGB), the Varada Grameena Bank, and Netravati Grameena Bank, were merged to form [[Karnataka Vikas Grameena Bank]].<ref name="KVS-TH">{{cite news|title=KVGB reckoned as best regional rural bank|url=http://www.thehindu.com/2005/10/07/stories/2005100709490300.htm|access-date=1 May 2016|work=[[The Hindu]]|date=7 October 2005}}{{dead link|date=April 2021|bot=medic}}{{cbignore|bot=medic}}</ref>

In March 2007, the Pigmy Deposit scheme was relaunched as Pigmy 2007. The older scheme was also continued as Pigmy 1928.<ref name="PigmyDepo-BS">{{cite news|title=Syndicate Bank relaunches 'Pigmy deposit'|url=http://www.business-standard.com/article/finance/syndicate-bank-relaunches-pigmy-deposit-107030201074_1.html|access-date=1 May 2016|work=[[Business Standard]]|date=2 March 2007}}</ref> By March 2015, the bank had opened 3552 branches.<ref name="NewBranch-LM">{{cite news|title=Syndicate Bank plans to open 355 new branches in 2015-16|url=http://money.livemint.com/news/company/news/syndicate-bank-plans-to-open-355-new-branches-in-2015-16-373084.aspx|access-date=1 May 2016|work=[[Live Mint]]|date=11 May 2015}}</ref>

On 30 August 2019, [[Minister of Finance (India)|Finance Minister]] [[Nirmala Sitharaman]] announced that Syndicate Bank would be merged with [[Canara Bank]]. The proposed merger would create the fourth largest public sector bank in the country with assets of {{INRConvert|15.20|lc}} and 10,324 branches.<ref>{{cite news|title=Government unveils mega bank mergers to revive growth from 5-year low
|url=https://timesofindia.indiatimes.com/business/india-business/government-unveils-mega-bank-mergers-to-revive-growth-from-5-year-low/articleshow/70911359.cms |access-date=30 August 2019|work=The Times of India|date=30 August 2019}}</ref><ref>{{cite web |author=Staff Writer |title=10 public sector banks to be merged into four |url=https://www.livemint.com/news/india/pnb-obc-and-united-bank-to-be-merged-nirmala-sitharaman-1567158678718.html |website=Mint |access-date=30 August 2019 |language=en |date=30 August 2019}}</ref> The Board of Directors of Canara Bank approved the merger on 13 September 2019.<ref>{{cite web |title=Canara Bank board gives approval for merger with Syndicate Bank |url=https://www.businesstoday.in/sectors/banks/canara-bank-board-gives-approval-for-merger-with-syndicate-bank/story/378909.html |website=Business Today |access-date=13 September 2019}}</ref><ref>{{cite web |title=PSU Bank merger: Canara Bank board approves merger with Syndicate Bank; key things to know |url=https://www.financialexpress.com/industry/banking-finance/psu-bank-merger-canara-bank-board-approves-merger-with-syndicate-bank-key-things-to-know/1705359/ |website=The Financial Express |access-date=13 September 2019 |date=13 September 2019}}</ref> The Union Cabinet approved the merger on 4 March 2020. Canara Bank assumed control over Syndicate Bank on 1 April 2020 with Syndicate Bank shareholders receiving 158 equity shares in the former for every 1,000 shares they hold.<ref name="business-standard.com"/>

==Controversies==
On 3 August 2014, the CMD of the bank, Sudhir Kumar Jain, and 11 others were arrested by the [[Central Bureau of Investigation]] (CBI). Jain was accused of taking bribes to extend the credit limits of companies.<ref name="Bribery-Reuters">{{cite news|title=Chairman of Syndicate Bank arrested on bribery allegations|url=http://in.reuters.com/article/syndicate-bnk-chairman-arrest-idINKBN0G302O20140803|access-date=1 May 2016|work=[[Reuters]]|date=3 August 2014}}</ref>

==References==
{{Reflist}}

==External links==
*[http://syndicatebank.in/ Syndicate Bank Official Website]

{{Canara Bank}}
{{Banking in India}}
{{Authority control}}

[[Category:Defunct banks of India]]
[[Category:Banks established in 1925]]
[[Category:Banks disestablished in 2020]]
[[Category:Indian companies disestablished in 2020]]
[[Category:Companies formerly listed on the Bombay Stock Exchange]]
[[Category:Banks based in Karnataka]]
[[Category:Companies nationalised by the Government of India]]
[[Category:Scandals in India]]
[[Category:Indian companies established in 1925]]
[[Category:Companies listed on the National Stock Exchange of India]]
[[Category:Companies listed on the Bombay Stock Exchange]]

Syndicate Bank - Revision history

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103.226.226.249 at 15:58, 26 August 2021