DECLARATION

I hereby inform that this project report is a result of my own work in the
fulfillment of academics requirement. This report is the sole property of the Seth
Padam Chand Jain Institute of Commerce Business Management &
Economics, Agra & it is prohibited to be used, copied or edited by any person,
written or by any mean. For doing so proper permission from authority should be
taken.

PRASHANT SRIVASTAVA
M.B.A. (BANKING AND INVESTMENT) - IV SEM.
Roll No.- 17
Batch: 2008-10
SETH PADAM CHAND JAIN INSTITUTE OF COMMERCE BUSINESS
MANAGEMENT & ECONOMICS, AGRA

PREFACE

1
 Modern organizations are highly complex ad dynamics systems. They
operate under very turbulent social economic and political environment. They are
required to reconcile several incompatible goals. Conflicting roles and divergent
interest they are also fraught with the use risk and uncertainties, hence tactful
management of such organization to plan to execute guide, coordination and
control the performance of people to achieve predetermined goals. Management
has to keep the organization vibrant moving and in equilibrium. It has to achieve
goal which themselves are changing it is therefore a problem highly complex and
ticklish.
T hi s i nf or m at i on wi l l be asset t o m ar ket i ng m anager i n
m aki ng ef f ect i ve deci si ons. T he r esear ch ar e used t o acquir e and
anal yse i nf or m at i on and t o m ake suggest i ons t o m anagem ent as t o
how m ar ket i ng pr obl em s shoul d be sol ved.
T he m ar ket i ng resear ch is t he pr ocess whi ch li nks to
m anuf act ur er , deal er s and i ndi vi dual s thr ough inf or m at i on i n
i m por t ant par t of cur r i cul um of M.B.A. pr ogr am m e i s pr oj ect t aken
by t he st udent s t o i nst i t ut e under whi ch he or she i s st udyi ng, af t er
com pl et i on of t hir d sem est er of t he pr ogr am m e.
T he obj ect i ve of t hi s pr oj ect i s t o enabl e t he st udent s t o
under st and t he appl i cat i on of t he academ i cs i n t he real busi ness
l i f e. I am ful l y conf i dent t hat t hi s pr oj ect r epor t wi l l be ext r em el y
usef ul t o t he m anagem ent .

ACKNOWLEDGEMENT

2
 T hi s repor t bear s t he i m pr i nt of m any per sons, who have hel ped
m e i n num er ous ways i n wr i t i ng thi s r epor t . I t gi ves m e gr eat
pl easur e i n pr esent i ng t hi s r epor t t o t he Dr . B.R. Am bedkar
Uni ver si t y, Agr a vi a Set h Padam Chand Jai n Inst i t ut e of
Com m erce Bu si n ess Managem ent & Econom i cs . I woul d l i ke
t o t ake t hi s oppor t uni t y t o ext end m y hear t f ul gr at i t ude t o al l
t hose who hel ped me in pr esent i ng t hi s r epor t . T heir
cont r i but i on no m at t er bi g or sm al l has cont r i but ed im m ensel y
t owar ds com pl et i on of t hi s r epor t .
I f all shor t of wor ds t o expr ess m y gr at it ude t o al l the
r espondent s who gi ves m e t heir val uabl e t i m e and unbi ased
r esponses f or my quest i onnai r e of t hi s pr oj ect r epor t . I
acknowl edge m y deep sense of gr at i t ude t o MR. Al ok K u m ar
S axen a ( Lect u rer) for hi s gener ous gui dance & advi ce bef or e &
dur i ng t he cour se of t hi s wor k & al so i n anal yzi ng t he wor k.
I am al so ext r em el y gr at ef ul t o m y f acul t y m em ber s Mr . P.N.
Agar wal , Ms. Gunj an Di xi t and Ms. Swat i Mat hur , who encour ages
m e f or com pl et i ng my pr oj ect r eport . My overr i di ng debt i s t o my
par ent s and m y si bl i ngs who pr ovi de m e wi t h t he m or al suppor t &
i nspi r at i on needed t o pr epar e t hi s repor t .

PRASHANT SRIVASTAVA

TO WHOMSOEVER IT MAY CONCERN

3
This is to certify that Mr. Prashant Srivastava, student of M.B.A- Banking &
Investment IV semester, Seth Padam Chand Jain Institute of Commerce
Business Management & Economics, Agra has completed his research project
entitled “A STUDY OF GRIEVANCE HANDLING PROCEDURE OF
BANKS WITH SPECIAL REFERENCE OF SYNDICATE BANK” Under my
guidance of the partial fulfillment of her degree. Certified further, to the best of my
knowledge the work reported here in does not form part of any other thesis on the
basis of which any other candidate conferred a degree on earlier occasion.

Mr. Alok Kumar Saxena

(Lecturer)

CHAPTER PLAN

Page No.
4
CHAPTER-1: INTRODUCTON

(i) Overview of the Banking Industry 7

(ii) About Syndicate Bank 27

(iii) Grievance 40

CHAPTER-2: PURPOSE OF THE STUDY

(i) Objective of the Study 60

(ii) Scope of the Study 61

CHAPTER-3: RESEARCH METHODOLOGY 62

CHAPTER-4: DATA ANALYSIS AND INTERPRETATION 65

CHAPTER-5: FINDINGS OF THE STUDY 76

CHAPTER-6: SUGGESTIONS & RECOMMENDATIONS 78

CHAPTER-7: CONCLUSION 80

CHAPTER-8: QUESTIONNAIRE 82

CHAPTER-9: BIBLIOGRAPHY 87

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  OVERVIEW OF THE BANKING INDUSTRY

 ABOUT SYNDICATE BANK

 GRIEVANCE

OVERVIEW OF BANKING INDUSTRY IN INDIA

The major participants of the Indian financial system are the commercial
banks, the financial institutions (FIs), encompassing term-lending institutions,
investment institutions, specialized financial institutions and the state-level
development banks, Non-Bank Financial Companies (NBFCs) and other market
intermediaries such as the stock brokers and money-lenders. The commercial
banks and certain variants of NBFCs are among the oldest of the market

6
participants. The FIs, on the other hand, are relatively new entities in the financial
market place.
Bank of Hindustan, set up in 1870, was the earliest Indian Bank . Banking in
India on modern lines started with the establishment of three presidency banks
under Presidency Bank's act 1876 i.e. Bank of Calcutta, Bank of Bombay and Bank
of Madras. In 1921, all presidency banks were amalgamated to form the Imperial
Bank of India. Imperial bank carried out limited central banking functions also
prior to establishment of RBI. It engaged in all types of commercial banking
business except dealing in foreign exchange.
Reserve Bank of India Act was passed in 1934 & Reserve Bank of India
(RBI) was constituted as an apex bank without major government ownership.
Banking Regulations Act was passed in 1949. This regulation brought Reserve
Bank of India under government control. Under the act, RBI got wide ranging
powers for supervision & control of banks. The Act also vested licensing powers &
the authority to conduct inspections in RBI

In 1955, RBI acquired control of the Imperial Bank of India, which was renamed
as State Bank of India. In 1959, SBI took over control of eight private banks
floated in the erstwhile princely states, making them as its 100% subsidiaries. 
RBI was empowered in 1960, to force compulsory merger of weak banks
with the strong ones. The total number of banks was thus reduced from 566 in
1951 to 85 in 1969. In July 1969, government nationalised 14 banks having
deposits of Rs.50 crores & above. In 1980, government acquired 6 more banks
with deposits of more than Rs.200 crores. Nationalisation of banks was to make
them play the role of catalytic agents for economic growth. The Narsimham
Committee report suggested wide ranging reforms for the banking sector in 1992
to introduce internationally accepted banking practices. 

7
 The amendment of Banking Regulation Act in 1993 saw the entry of new
private sector banks.
Banking Segment in India functions under the umbrella of Reserve Bank of
India - the regulatory, central bank. This segment broadly consists of: 
Commercial; Banks

Co-operative Banks

Commercial Banks
The commercial banking structure in India consists of:
 Scheduled Commercial Banks
 Unscheduled Banks
Scheduled commercial Banks constitute those banks which have been
included in the Second Schedule of Reserve Bank of India(RBI) Act, 1934. RBI in
turn includes only those banks in this schedule which satisfy the criteria laid down
vide section 42 (60 of the Act. Some co-operative banks are scheduled commercial
banks albeit not all co-operative banks are. Being a part of the second schedule
confers some benefits to the bank in terms of access to accomodation by RBI
during the times of liquidity constraints. At the same time, however, this status also
subjects the bank certain conditions and obligation towards the reserve regulations
of RBI. This sub sector can broadly be classified into:

1. Public sector 

2. Private sector  

3. Foreign banks.

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 CO-OPERATIVE BANKS
There are two main categories of the co-operative banks.

(a) Short term lending oriented co-operative Banks - within this category
there are three sub categories of banks viz state co-operative banks, District
co-operative banks and Primary Agricultural co-operative societies.

(b) Long term lending oriented co-operative Banks - within the second
category there are land development banks at three levels state level, district
level and village level.
The co-operative banking structure in India is divided into following main 5
categories: (Visit us again for details of each category)

1. Primary Urban Co-op. Banks

2. Primary Agricultural Credit Socities.
3. District Central Co-op. banks.
4. State Co-op. Banks.
5. Land Development Banks.

BANKS IN INDIA

s S. N. Public Sector Banks Private Sector Foreign Banks

Banks
1. Allahabad Bank Bank of Punjab Ltd. ABN-AMRO Bank N.V
2. Andhra Bank Centurion Bank Ltd. Abu Dhabi Commercial

9
3. Bank of Baroda Development Credit Bank Bank Ltd
4. Bank of India Ltd. American Express Bank Ltd.
5. Bank of Maharashtra HDFC Bank Ltd. BNP Paribas
6. Canara Bank ICICI Bank Ltd. Citibank N.A
7. Central Bank of India IndusInd Bank Ltd. DBS Bank Ltd
8. Corporation Bank Kotak Mahindra Bank HSBC Ltd.
9. Dena Bank Ltd. Standard Chartered Bank
10. Indian Bank UTI Bank Ltd.
11 Indian Overseas Bank Yes Bank Ltd
12. Oriental Bank of Bank of Rajasthan Ltd.
13. Commerce Dhanalakshmi Bank Ltd.
14. Punjab and Sind Bank Federal Bank Ltd
15. Punjab National Bank ING Vysya Bank Ltd.
16. Syndicate Bank Jammu and Kashmir Bank
17. UCO Bank Ltd.
18. Union Bank of India Karnataka Bank Ltd
19. United Bank of India Karur Vysya Bank Ltd
20. Vijaya Bank Ratnakar Bank Ltd
21. IDBI Bank SBI Commercial and
22. State Bank of India International Bank Ltd
South Indian Bank Ltd
United Western Bank Ltd

10
 SERVICES PROVIDED BY THE BANKS

Banking Regulation Act of India, 1949 defines Banking as "accepting, for

the purpose of lending or investment of deposits of money from the public,
repayable on demand or otherwise and withdrawable by cheques, draft, order or
otherwise."
Most of the activities a Bank performs are derived from the above definition.
In addition, Banks are allowed to perform certain activities, which are ancillary to

11
this business of accepting deposits and lending. A bank's relationship with the
public, therefore, revolves around accepting deposits and lending money. Another
activity which is assuming increasing importance is transfer of money - both
domestic and foreign - from one place to another. This activity is generally known
as "remittance business" in banking parlance. The so-called forex (foreign
exchange) business is largely a part of remittance albeit it involves buying and
selling of foreign currencies.

The law governing Banking Activities in India is called "Negotiable

Instruments Act 1881". The banking activities can be classified as:

1. Accepting Deposits from public/others (Deposits)

2. Lending money to public (Loans) 

3. Transferring money from one place to another (Remittances) 

4. Acting as trustees 

5. Acting as intermediaries 

6. Keeping valuables in safe custody 

7. Collection Business 

8. Government business

1. ACCEPTING DEPOSITS IS ONE OF THE TWO MAJOR

ACTIVITIES OF THE BANKS:

12
 Banks are also called custodians of public money. Basically, the money
is accepted as deposit for safe keeping. But since the Banks use this money to
earn interest from people who need money, Banks share a part of this interest
with the depositors. The quantum of interest depends upon the tenor - length
of time for which the depositor wishes to keep the money with the Bank -
and the ease of withdrawal. The thumb rule is, longer the tenor, higher the
rate of interest and lesser the restrictions on withdrawal, lesser the interest.
Exceptions, however, exist. Deposits are accepted from both resident
(domestic) or non-resident Indian customers.

It is the business of the banker to accept deposits so that he can lend it

to others and earn interest. Depending upon the liquidity position of the
market and the size of deposit, the earnings can vary and if the size of the
deposit is big enough, it is advisable to shop around and get the best rate.

Type of deposit accounts (Domestic Customers)

i) Fixed Deposit Accounts
ii) Demand Deposits
o Savings Account

o Current account

i) Fixed Deposits

The term 'fixed' here denotes tenure. Fixed Deposit, therefore, presupposes a
length of time for which the depositor decides to keep the money with the
Bank and the rate of interest payable to the depositor is decided by this
tenure. Rate of interest differs from Bank to Bank. Generally, the rate is
highest for deposits for 3-5 years. This, however, does not mean that the

13
depositor loses all his rights over the money for the duration of the tenor
decided. Deposits can be withdrawn before the period is over. However, the
amount of interest payable to the depositor, in such cases goes down.

ii) Savings Account

As the name denotes, this account is ideal for parking your temporary
savings. This account gives you a nominal rate of interest and you can
withdraw money as and when the need arises. The position of account is
depicted in a small book called 'Pass Book'. Such accounts should be treated
as a temporary parking area because the rate of interest is much less than
Fixed Deposits. As soon as your savings accumulate to an amount which you
can spare for a certain length of time (even three months), shift this money to
Fixed Deposit. It should be understood that your returns on the money kept in
Savings Bank account are the least but the flexibility to withdraw is the
highest.

Rate of Interest on Savings Account is fixed by RBI and is currently 4%.

iii) Current Account

Current account is an account with minimum amount of restrictions. Most
individuals do not need this account. You need this account only if you make
a number of deposits and withdrawals in a single day and many of the
deposits are drawn on outstation banks. Banks accept deposits in current
account and allow unlimited withdrawals subject to a minimum balance. This
minimum balance differs from Bank to Bank. NO interest is payable on a
current account. Opening of a current account is indicated in the case of a
business enterprise or high worth individuals who deal with a lot of third

14
party cheques, drafts etc. or who may at times need to borrow money from
the Bank against some security.
Most of the other products offered by the Banks viz. Recurring
Deposit Account, Multi Option Deposit Account, Special Term Deposit
Accounts, Current Fixed Account etc. are essentially combinations of the
above basic type of accounts and are packaged by different Banks to attract
different groups of customers.

2. LENDING MONEY TO THE PUBLIC

Lending money is one of the two major activities of any Bank. Banks
accept deposit from public for safe-keeping and pay interest to them. They
then lend this money to earn interest on this money. In a way, the Banks act
as intermediaries between the people who have the money to lend and those
who have the need for money to carry out business transactions. The
difference between the rate at which the interest is paid on deposits and is
charged on loans, is called the "spread".
Banks lend money in various forms and they lend for practically every
activity. Let us first look at the lending activity from the point of view of
security. Loans are given against or in exchange of the ownership (physical
or constructive) of various type of tangible items. Some of the securities
against which the Banks lend are :

1. Commodities

2. Debts

3. Financial Instruments

15
4. Real Estate

5. Automobiles

6. Consumer durable goods

7. Documents of title

Apart from the above categories, the Banks also lend to people on the
basis of their perceived personal worth. Such loans are called clean and the
Banks are understandably cagey about extending such loans. The credit card
arms of the various Banks, however, fill up this void.
Cash credit Account
This account is the primary method in which Banks lend money against
the security of commodities and debt. It runs like a current account except
that the money that can be withdrawn from this account is not restricted to
the amount deposited in the account. Instead, the account holder is permitted
to withdraw a certain sum called "limit" or "credit facility" in excess of the
amount deposited in the account.
Cash Credits are, in theory, payable on demand. These are, therefore, counter
part of demand deposits of the Bank.
Overdraft
The word overdraft means the act of overdrawing from a Bank
account. In other words, the account holder withdraws more money from a
Bank Account than has been deposited in it.
How does this account then differ from a Cash Credit Account?
The difference is very subtle and relates to the operation of the account.
In the case of Cash Credit, a proper limit is sanctioned which normally is a

16
certain percentage of the value of the commodities/debts pledged by the
account holder with the Bank. Overdraft, on the other hand, is allowed
against a host of other securities including financial instruments like shares,
units of mutual funds, surrender value of LIC policy and debentures etc.
Some overdrafts are even granted against the perceived "worth" of an
individual. Such overdrafts are called clean overdrafts.
Bill Discounting
Bill discounting is a major activity with some of the smaller Banks.
Under this type of lending, Bank takes the bill drawn by borrower on
his(borrower's) customer and pay him immediately deducting some amount
as discount/commission. The Bank then presents the Bill to the borrower's
customer on the due date of the Bill and collect the total amount. If the bill is
delayed, the borrower or his customer pay the Bank a pre-determined interest
depending upon the terms of transaction.
Term Loan
Term Loans are the counter parts of Fixed Deposits in the Bank. Banks
lend money in this mode when the repayment is sought to be made in fixed,
pre-determined installments. This type of loan is normally given to the
borrowers for acquiring long term assets i.e. assets which will benefit the
borrower over a long period (exceeding at least one year). Purchases of plant
and machinery, constructing building for factory, setting up new projects fall
in this category. Financing for purchase of automobiles, consumer durables,
real estate and creation of infra structure also falls in this category.

17
Classification of loans
Another way to classify the loans is through the activity being
financed. Viewed from this angle, bank loans are bifurcated into :
 Priority sector lending
 Commercial lending
i) Priority Sector Lending
The Government of India through the instrument of Reserve Bank of
India (RBI) mandates certain type of lending on the Banks operating in India
irrespective of their origin. RBI sets targets in terms of percentage (of total
money lent by the Banks) to be lent to certain sectors, which in RBI's
perception would not have had access to organised lending market or could
not afford to pay the interest at the commercial rate. This type of lending is
called Priority Sector Lending. Financing of Small Scale Industry, Small
business, Agricultural Activities and Export activities fall under this
category. This is also called directed credit in Indian Banking system.
Financing Priority Sector in the economy is not strictly on commercial
basis as not only the general approach is liberal but also the rate of interest
charged on such loans is less. Export finance is, in fact, available at a
discount of 20% or more on the normal rate of interest to Indian corporates.
Part of the cost of this concession is borne by RBI by means of refinancing
such loans at concessional rate. Indian Banks, therefore, contribute towards
economic development of the country by subsidizing the business activities
undertaken by entrepreneurs in the areas which are consider "priority sector"
by RBI.

18
ii) Commercial Loans
This is the mainstay of Indian Banking - its bread and butter activity.
Although historically, this activity had been relegated to a secondary position as
banks were driven by the desire to excel themselves in what is known as "priority
sector banking" yet it is this part of their loan portfolio which has kept them afloat
and help meet the costs. This activity survived despite a number of restrictions
imposed on it in the past. With financial sector reforms, the focus has shifted from
"priority sector banking" and commercial lending has been reinstated to its rightful
place. Today many banks focus on this activity for improving their bottom lines.
Fresh and innovative products are being launched to facilitate the corporate
customer who forms the core of this business. There is big competition among
banks to secure bigger share of this business
At present, commercial loans are available for practically any kind of
activity and also for both long and short tenures. Based on customer profile, these
loans are of two types :
a) Corporate Loans
b) Retail Loans
a) Corporate Loans
These loans are meant for corporate bodies (and bigger ones among other
entities like proprietorships, partnerships and HUFs) engaged in any legal activity
with the object of making profit. Banks lend to such entities on the strength of their
balance sheet, the length of cash cycle and depending upon the products available
with individual banks.
Lending on the strength of balance sheet

19
 Banks analyse the audited balance sheets of the prospective borrowers to
appraise their needs as also the capacity to absorb credit. Prospective borrowers are
required to furnish their financial details in the form of CMA data to the bankers
and file an application for the loan. This application is processed and a line of
credit (limit) allowed to the borrower. The overall limit (line of credit) is structured
into various type of facilities or accounts - each with its own limit within the
overall line of credit - depending upon the needs of the customer. The borrower is
then asked to execute Bank's standard documents, surrender the security or title to
the security to the Bank and open suitable accounts (mostly Cash Credit accounts
with different underlying securities) with the Bank. Thereafter the borrower can
operate these accounts within the limit (line of credit).
There are many type of loan products available for corporate clients in India.
The loans are structured depending upon the need of the client and the product
available with the lending Bank
b) Retail Loans
This type of lending is meant for very small entrepreneurs as well as
individuals who are engaged in gainful commercial activity and have the
capacity to repay the loan. Loans are given on the strength of the means of
the borrower with an eye on the repaying capacity. The latter is judged
through the cash streams (income) available with the borrower for repayment
of the loan.
Loans for purchase of automobiles/consumer durable items
Most banks nowadays have a product for financing the purchase of
automobiles and other consumer durable items. The quantum of loan is generally
determined by the repayment capacity of the prospective borrower. This in turn,
depends upon the monthly income. Most Banks have their own method to calculate

20
the maximum monthly repayment capacity of a person. Thereafter, a loan for
which Equated Monthly Instalment (EMI) is within this capacity is considered the
outer limit for a person. The bank will be glad to finance to this extent for the
purchase of an automobile or any other consumer durable item.
Most Banks judge the monthly income with reference to either the latest
salary certificate from the employer ( in case of employees) or the last year's
income tax return (in case of self employed persons). Other methods are also
employed to appraise the maximum limit considered desirable for a person.
Tips:
1. While considering a loan of such nature, check whether the interest is
payable on the entire amount for the entire period or on the outstanding
amount only. The latter is what you should look for even if the rate of
interest is higher.
2. Check the rests i.e. the frequency at which the interest will be debitted or
charged to your account. Reject any frequency less than a quarter.
3. Mostly there are hidden charges called service charges or appraiser charges
which inflate the cost to you. Carefully check these before you venture forth
4. You will be required to hypothecate/mortgage the goods bought out of the
loan. So be prepared to sign a lot of documents
5. Peruse the documents carefully so that there are no honorous clauses which
tilt the balance heavily in favour of the Bank/ finance company.

3. REMITTANCE BUSINESS

Apart from accepting deposits and lending money, Banks also carry out, on
behalf of their customers the act of transfer of money - both domestic and foreign.-

21
from one place to another. This activity is known as "remittance business" . Banks
issue Demand Drafts, Banker's Cheques, Money Orders etc. for transferring the
money. Banks also have the facility of quick transfer of money also know as
Telegraphic Transfer or Tele Cash Orders.
In Remittance business, Bank 'A' at a place 'a' accepts money from customer
'C' and makes arrangement for payment of the same amount of money to either the
customer 'C' or his "order" i.e. a person or entity, designated by 'C' as the recipient,
through either a Branch of Bank 'A' or any other entity at place 'b'. In return for
having rendered this service, the Banks charge a pre-decided sum known as
exchange or commission or service charge. This sum can differ from bank to bank.
This also differs depending upon the mode of transfer and the time available for
effecting the transfer of money. Faster the mode of transfer, higher the charges.
Demand Draft
A demand draft or "DD" is an instrument most banks in India use for
effecting transfer of money. It is a Negotiable Instrument. To buy a "DD" from a
Bank, you are required to fill an application form which asks the following
information :
 Type of instrument needed
 Name of the recipient
 Name of the sender
 Amount to be transferred
 Place where the transferred money is to be paid
 Mode in which money is to be paid i.e. in cash or through a Bank Account
 Mode in which you will pay money to the Bank i.e. in cash or by debit to
your account

22
  The application form along with the cheque on your account or cash is
deposited with the counter clerk who gives you a Demand Draft (which looks like
a cheque) for the amount.
Tips:
1. Check the particulars like name of the beneficiary, amount, place where
payable etc. filled in the DD, match these with what you had filled in the
application form.
2. Spellings of the beneficiary's name should be exactly the same.
3. Get the DD "crossed" for security.
4. Your PAN number will be necessary if the amount of DD exceeds
Rs.10,000/=
5. Charges for issuing drafts differ from Bank to Bank. So if your requirements
are large, do shop around for best bargain.
Mail Transfers or Mail Orders
This is the mode used when you wish to transfer money from your account in
Center 'A' to either your own account in Center 'B' or to somebody else's account.
In this mode of transfer, you are required to fill in an application form similar to
the one for DD, sign a charge slip or give a cheque for the amount to be transferred
plus exchange and collect a receipt. The Bank will, on its own, send an order to its
branch at center 'B' to deposit the said amount in the account number designated by
you.This is, however, a dying product and many banks like State Bank of India
have since withdrawn this.

Telegraphic Transfers or Tele Orders

23
This is similar to the Mail Transfer except that the message is sent to center 'B' by
way of a telegram and the money is deposited the next day. The mode of
instructions nowadays is increasingly the fax.
Electronic Mode
More and more banks are now offering electronic mode of transfer of funds
like Electronic Transfer System, Cash Management product etc. The remittance of
funds through these modes is much quicker and the time is reduced to hours and in
some cases even minutes.  

4. ACTING AS TRUSTEES
Under section 3 of Indian Trusts Act, 1882 a trust is an obligation annexed
to the ownership of property, and arising out of a confidence reposed in and
accepted by the owner, or declared and accepted by him, for the benefit of another,
or of another and the owner.
Banks also act as trustees for various requirements of the corporates,
Government and General Public. For example, whenever a company wishes to
issue secured debentures, it has to appoint a financial intermediary as trustee who
takes charge of the security for the debenture and looks after the interests of the
debenture holders. Such entity necessarily have to have expertise in financial
matters and also be of sufficient standing in the market/society to generate
confidence in the minds of potential subscribers to the debenture. Banks are the
natural choice. For general public also the Banks normally have a facility called
"safe custody" where Banks act as trustees.
Banks also act as bankers to trustees appointed under the act mentioned
above. A banker has a few special obligations in such accounts and accordingly
special care is taken in such accounts.

24
5. KEEPING VALUABLES IN SAFE CUSTODY (LOCKERS)
Bankers are in the business of providing security to the money and valuables
of the general public. While security of money is taken care of through offering
various type of deposit schemes, security of valuables is provided through making
secured space available to general public for keeping these valuables. These spaces
are available in the shape of LOCKERS. The latter are small compartments with
dual locking facility built into strong, fire and burglar resistant cupboards. These
are stored in the Bank's Strong Room and are fully secure. Lockers can neither be
opened by the hirer or the Bank individually. Both must come together and use
their respective keys to open the locker.
Hiring of Lockers is a losing proposition for the Banks, if seen in isolation
as it involves major expenditure on buying those cabinets, providing a secure place
to keep them and manning the facility so that the customers are serviced
immediately. Banks offer this facility as a sop to attract deposits. So do not be
surprised if your Banker requests you to make a "small" fixed deposit before a
locker can be allotted to you.

6. COLLECTION BUSINESS
Apart from transferring money from one place to another, Banks are also in
the business of "collecting" your money from other places. For instance, if you
have received a payment by way of a cheque or DD drawn or payable at any
station other than your own, you can deposit it in your account with your local
banker and request for collection of the amount. The Bank will send the cheque to
its branch at that centre and get the amount collected for a small fee. The amount
of cheque/ draft will be deposited in your account and the fee deducted separately

25
from your account. Banks also undertake collection of bills of exchange - both
usance and demand - for their business clientele. 

Tips:
1. There are RBI norms for the time expected to be taken for collection
business and these norms are prominently displayed in banking hall of all
banks. If your collection is delayed beyond this period, the Bank is expected
to pay interest on the amount. If it does not, demand it.
2. Retain the counter foil of all deposits made in the bank as this is the only
proof of deposit made till your account is credited
3. If your business involves a number of such payments, it is advisable to open
an account with a Bank which has a large network of Branches.
4. Charges for each of these activities differ from bank to bank. While selecting
a bank for opening an account, these charges are an improtant parameter
which one should keep in mind.

26
27
 ABOUT SYNDICATE BANK

Syndicate Bank was established in 1925 in Udupi, the abode of Lord

Krishna in coastal Karnataka with a capital of Rs.8000/- by three visionaries - Sri
Upendra Ananth Pai, a businessman, Sri Vaman Kudva, an engineer and Dr.T M A
Pai, a physician - who shared a strong commitment to social welfare. Their
objective was primarily to extend financial assistance to the local weavers who
were crippled by a crisis in the handloom industry through mobilising small
savings from the community. The bank collected as low as 2 annas daily at the
doorsteps of the depositors through its Agents under its Pigmy Deposit Scheme
started in 1928. This scheme is the Bank's brand equity today and the Bank collects
around Rs. 2 crore per day under the scheme.

The progress of Syndicate Bank has been synonymous with the phase of
progressive banking in India. Spanning over 80 years of pioneering expertise, the
Bank has created for itself a solid customer base comprising customers of two or
three generations. Being firmly rooted in rural India and understanding the grass
root realities, the Bank's perception had vision of future India. It has been
propagating innovations in Banking and also has been receptive to new ideas,
without however getting uprooted from its distinctive socio-economic and cultural
ethos. Its philosophy of growth by mutual sustenance of both the Bank and the
people has paid rich dividends. The Bank has been operating as a catalyst of

28
development across the country with particular reference to the common man at
the individual level and in rural/semi urban centres at the area level.

The Bank is well equipped to meet the challenges of the 21st century in the areas
of information technology, knowledge and competition. A comprehensive IT plan
is being put in place and the skills and knowledge of the Bank's personnel are
being upgraded through a variety of training programmes to promote customer
delight in every sphere of its activity. The Bank has launched an ambitious
technology plan called Centralised Banking Solution (CBS) whereby 500 of our
strategic branches with their ATMs are being networked nationwide over a 4 year
period.

29
 Memorable Milestones in a 82-year Journey

Growing Far And Wide

1925 On 10.11.1925, the business of the Bank commenced in Udupi with the
name "Canara Industrial and Banking Syndicate Ltd.," a joint Stock
Company with just one employee.

1928 First branch of the Bank opened at Brahmavar in Dakshina Kannada District

1937 Bank became a member of the Clearing House for the first time at Bombay.

1946 29 branches opened in a single day in rural areas.

1953 Took over the assets and liabilities of 2 Local Banks viz. Maharashtra Apex
Bank Ltd. and Southern India Apex Bank Ltd. 20 Banks merged with the
Bank during the period 1953-1964.

1957 100th branch opened at Ilkal in Karnataka.

1962 Entered Foreign Exchange business by opening Foreign Exchange

Department at Bombay.

1963 Name of the Bank changed from "Canara Industrial & Banking Syndicate
Ltd." to "Syndicate Bank Limited". Head Office was shifted to Manipal on
19.4.1964.

30
1966 Economic Research Department set up. One of the first few Banks to
emphasize on research in Banking even before nationalisation.

1969 Bank had 306 branches at the time of nationalisation of which 66% were in
Rural and Semi Urban centres. Opened a branch at Port Blair in Andaman
and Nicobar islands

1970 First Staff Training College started at Head Office

1971 First specialised branch in Foreign Exchange opened at Delhi.

1972 Opened a branch at Lakshadweep islands

1976 First overseas branch opened at London on 17.8.76.

1983 Took up management of Al Shabei Finance and Exchange Co. in Doha

1984 Took up management of Musandam Exchange Co. in Muscat.

1984 1000th branch opened at Delhi Hauz Khas.

1989 1500th branch opened at Kanakumbi.

1991 First Specialised Industrial Finance Branch opened at Mumbai.

1995 First Specialised Housing Finance Branch opened at Mangalore.

1999 Bank raised Capital of Rs.125 Crore in Oct.1999 from more than 4 lakh
shareholders.

2000 First Specialised Capital Market Services branch opened at Mumbai.

2001 First branch under CBS (Core Banking Solution) started operation at
Bangalore.

31
2002 Centralised Banking Solution under the brand name "Syndicate-e-banking"
launched at Delhi, Mumbai, Bangalore and Manipal.

2003 Bank enters into MOU with Bajaj Allianz for distribution of Life Insurance
products.

2003 Toll Free Voice Mail System for redressal of grievances introduced.

2004 Bank ties up with United India Insurance Co. Ltd. for distribution of Non-
Life Insurance products

2004 Utility bill payment services through Internet banking introduced.

2005 Introduced On-line reservation of Railway Tickets through Indian Railway

Catering & Tourism Corporation Ltd. (IRCTC) for Internet banking
customers of our Bank.

2005 ank approached the Capital Market with Rs.5 Crore equity shares at a
premium of Rs.40 through Book building route Bank collected Rs.250 Crore
and the issue was oversubscribed by 29.275 times.

2005 Amalgamation of 4 Regional Rural Banks of Karnataka to form Karnataka

Vikas Grameena Bank with Head Office at Dharwad.

2005 Implementation of Venture Capital Scheme of SMALL FARMERS AGRI-

BUSINESS CONSORTIUM (SFAC) Entered into MOU with SFAC for
promoting of investments in Agri-business products.

2006 Bank signs MOU with M/s.CMC Ltd., for making Syndicate Institute of
Bank Management (SIBM) a center of excellence of global standards and
provide quality management education.

2006 500th Branch of SyndicateBank in Karnataka opened at Navnagar, Bagalkot.

32
2006 2000th Branch of SyndicateBank opened at Tondiarpet, Chennai on
23.03.2006.

2006 Inauguration of SyndBank Services Limited, the 1st BPO outfit of a

Nationalised Bank, a wholly owned subsidiary of SyndicateBank & 525th
CBS Branch by Hon'ble Union Minister of Finance, Sri P Chidambaram on
24.03.2006 at Bangalore.

2006 2006th Branch of SyndicateBank opened at Gangtok, Sikkim on 27.03.2006.

2006 First Branch opened in Arunachal Pradesh at Ita Nagar on 16th October
2006.

2006 Branches opened for the first time in 19 additional districts.

2007 First Branch opened in Nagaland at Dimapur on 17.03.2007.

2007 First Branch opened in Mizoram in Aizawl on 29.03.2007

2007 Branches opened for the first time in 13 additional districts.

2008 First Branch opened in Tripura at Agarthala on 11.01.2008.

2008 Branch network expanded to all States and UTs except Manipur & Daman
Diu.

2008 Branches opened for the first time in 6 new districts.

33
 Technology Initiatives of Syndicate Bank
 
1965 Installed first Data Processing machine at the Head Office.

1985 ALPMs introduced

1987 In House Computer at H.O. upgraded to ICIM 6000/40

1991 Established connectivity to SWIFT

1993 First totally computerised branch made operational at Nehru

Place Delhi

1995 E-Mail facility introduced at 26 branches

1996 First Telebanking facility introduced at South Block Branch

New Delhi

1996 First ATM installed at Gandhi Nagar, Bangalore.

1997 Bank's website launched

1998 Joined Indian Financial Network (INFINET) and VSAT
Network

2001 Centralised Banking Solution (CBS) under the brand name

"Syndicat-e-banking" launched

2004 Internet Banking launched as one more Delivery Channel for

CBS customers

2005 Syndicat-e-banking extended to 245 Branches/Offices as at

31.03.2005 covering 105 centres
SyndBillPay Scheme & Excise and Service Tax payments
scheme launched through Internet Banking
34
2006 Syndicat-e-Banking Branches/Offices extended to 529 in 212
centres as at 31.03.2006
 Board of Directors

Shri Basant Seth

 Shri Basant Seth has been appointed as Chairman and Managing Director of
Syndicate  Bank by the Government of India. He has assumed charge as Chairman
and Managing Director of Syndicate Bank on 31st August ,2009.

Shri Vinod Kumar Nagar 

Shri Vinod Kumar Nagar has been appointed as Executive Director of
SyndicateBank by the Government of India. He has taken charge as Executive
Director of SyndicateBank on 8th October 2008.

Shri R Ramachandran 
Shri R Ramachandran has been appointed as Executive Director of SyndicateBank
by the Government of India. He has assumed the office on 19th December 2008.

Shri M Deena Dayalan 

Shri K Seetharamu 
Shri Ramesh L Adige
Shri M Bhaskara Rao 
Shri AR Nagappan 
Shri Bhupinder Singh Suri 

Awards Won By The Bank Over The Years

35
1972 INDIAN MERCHANTS' CHAMBER AWARD for outstanding
contributions towards welfare of community.

1974 INDIAN MERCHANTS CHAMBER AWARD for outstanding

contribution in promotion of savings.

1975 FICCI AWARD For outstanding achievements in agriculture.

1975 LAGHU UDYOG SAHAKARI AWARD by the national

alliance of young entrepreneurs for bank's significant
contributions to the development of small scale industries and
assistance to the young entrepreneurs through self employment
clinics.

1975 INTERNATIONAL AWARD by JAYCEE INTERNATIONAL

for self employment.

1975 FICCI AWARD in recognition of corporate initiative in

industrial relations.

1975 CERTIFICATE OF MERIT for Bank's house journal "GIANT"

1976 INTERNATIONAL AWARD by JAYCEE international for

outstanding contribution to the cause of the JAYCEE movement.

1977 ASSOCHAM AWARD for promotion of rural and agricultural

activities of Syndicate Agriculture Foundation sponsored by the

36
 bank.

1978 INDIAN MERCHANTS CHAMBER AWARD for outstanding

contribution towards welfare of the community.

1978 NATIONAL TROPHY For outstanding export performance

1981 NATIONAL INVESTMENT AND FINANCE AWARD for
Priority Sector lending.

1990 CHAUDHARI CHARAN SINGH MEMORIAL NATIONAL

AWARD for Rural Development.

1999 FICCI AWARD for institutional initiative in the field of "Rural

Development" to RUDSETI jointly sponsored by Syndicate
Bank.

2001 Banking Technology Award for innovative use of Banking

Applications on INFINET awarded by IDRBT, Hyderabad.

2003 Banking Technology Award conferred on SyndicateBank by

IDRBT, Hyderabad for 2003.

2006 "Special Award for Use of IT for Customer Service in Semi-

Urban and Rural Areas", conferred by IDRBT, Hyderabad for
2006.

2006 Best Core Banking Project Award for Large Banks in 2006
awarded by The Asian Banker.

37
38
 GRIEVANCE

Grievance is any discontent or dissatisfaction that affects organizational

performance. As such it can be stated or unvoiced, written or oral, legitimate or
ridiculous. If the dissatisfaction of employees’ goes unattended or the conditions
causing it are not corrected, the irritation is likely to increase and lead to
unfavorable attitude towards the management and unhealthy relations in the
organization.

The formal mechanism for dealing with such worker’s dissatisfaction is

called grievance procedure. All companies whether unionized or not should have
established and known grievance methods of processing grievances. The primary
value of grievance procedure is that it can assist in minimizing discontent and
dissatisfaction that may have adverse effects upon co-operation and productivity. A
grievance procedure is necessary in large organization which has numerous
personnel and many levels with the result that the manager is unable to keep a

39
check on each individual, or be involved in every aspect of working of the small
organization.

The usual steps in grievance procedure are

1. Conference among the aggrieved employee, the supervisor, and the union
steward.
2. Conference between middle management and middle union leadership.
3. Conference between top management and top union leadership.
4. Arbitration.
There may be variations in the procedures followed for resolving employee
grievances. Variations may result from such factors as organizational or decision-
making structures or size of the plant or company. Large organizations do tend to
have formal grievance procedures involving succession of steps.

Causes for Grievance

Grievance may arise due to the following reasons :

1. Grievance arising out of working condition:

 Poor physical work of work place.

 Very tight production standards.
 Non – availability of proper tools and machines.
 Unplanned changes in schedules and procedures.
 Failure to maintain proper discipline.
 Mismatch of the worker with the job.
 Poor relationship with the supervisor.

40
2. Grievance arising from Management policy:

 Wages rate and method of wage payment.

 Overtime and incentive schemes.
 Seniority.
 Transfers.
 Promotion, demotion and discharge.
 Lack of opportunities for career growth.
 Penalties imposed for misconduct.
 Leave.
 Hostility towards trade unions.

3. Grievance arising from Alleged Violation of:

 The collective bargaining agreement.
 Company rules and regulations.
 Past practice.
 Central or State Laws.
 Responsibility of management.

4. Grievance arising out of Personal Maladjustment.

 Over-ambition.
 Excessive self –esteem.
 Impractical attitude to life.

41
 EMPLOYEE GRIEVANCE

Every employee has certain expectations, which he thinks must be fulfilled

by the organization he is working for. When the organization fails to do this, he
develops a feeling of discontent or dissatisfaction. When an employee feels that
something is unfair in the organization, he is said to have a grievance.
According to Julius,
a grievance is “any discontent or dissatisfaction, whether expressed or not,
whether valid or not, arising out of anything connected with the company
which an employee thinks, believes or, even feels to be unfair, unjust or
inequitable.”

The best approach towards grievance is to anticipate them and take steps to
tackle them before the grievances assume dangerous proportions. Any ordinary
manager redresses grievances as and when they arise. An excellent manager
anticipates and prevents them. Managers can know and understand grievance
with the help of the following methods:

42
1. Exit Interview. An interview of every employee who quits the organization
can reveal employee grievances. Most of the employees quit the company
due to some dissatisfaction. Great amount of care and empathy is necessary
for a successful exist interview.

2. Opinion Surveys. A survey may be conducted to elicit the opinion of

employees regarding the organisation and its management. Group meetings,
periodical interviews with workers and collective bargaining sessions are
also helpful in knowing employee discontent before it becomes a grievance.

3. Gripe Boxes. In these boxes employees can drop there anonymous

complaints. There are different from the suggestions boxes in which
employees drop their suggestion with their names written on them.

4. Open Door Policy. It implies a general invitation to the employees to

informally drop in the manager’s room any time and talk over their
grievances. This policy is useful in keeping touch with employees feelings.
But it suffers from the following limitations:
(a) This policy is workable only in very small organizations. In big
organizations, top managers do not have the time to meet the large numbers
of employees daily.
(b)Under this policy the front line superior is bypassed. He should first of all
know the grievance of his subordinate.
(c) This policy does not permit the top management to assess a superior’s skill
in handling grievance.

43
(d)Top management is not familiar with the work situation in which the
grievance developed. It cannot, therefore, correctly evaluate the information
provided by the aggrieved employee.
(e) Lower level employees hesitate to enter the room of a top manager and
speak freely.

In large organization, management by, walking around might be preferable to

open door policy. In this system the managers walks through the employees,
observes them and if necessary listen to their problems.

How to handle a grievance?

Do

 Investigate and handle each and every case as though it may eventually
result in an arbitration hearing.
 Talk with the employee about his or her grievance; give the person a
good and full hearing.
 Require the union to identify specific contractual provisions allegedly
violated.
 Comply with the contractual time limits of the company for handling the
grievance.
 Visit the work area of the grievance.
 Determine whether there were any witnesses.
 Examine the grievant’s personnel records.
 Treat the union representative as your equal.
 Hold your grievance discussion privately.

44
  Fully inform your own supervisor of grievance matters.


Don’t

 Discuss the case with the union steward alone- the grievant should definitely
by there.
 Make arrangements with individual employees that are inconsistent with the
labour agreement.
 Hold back the remedy if the company is wrong.
 Admit to the binding effect of a past practice.
 Relinquish to the union your rights as a manager.
 Settle grievance in the basis of what is “fair.” Instead, stick of the labour
agreement, which should be your only standard.
 Bargain over items not covered by the contract.
 Treat as subject to arbitration claims demanding the discipline or discharge
of managers.
 Give long, written grievance answers.
 Trade a grievance settlement for a grievance withdrawl.
 Deny grievances on the premise that your “hands have been tied by
management.”
 Agree to informal amendments in the contract.

45
 PROCEDURE OF REDRESSAL OF GRIEVANCE

Arbitration

Top Management Top Union Leaders

Middle Management Middle level Union Leaders

Front-Line Supervisors Union Representative

Aggrieved Employee
46
 Grievance Redressal Procedure

Every organization requires a permanent procedure for handling employee

grievance. Grievance handling procedure is a formal process of settling grievance
and it usually consists of a number of steps arranged in a hierarchy. The number of
these steps may vary with size of the organization. In small organizations,
grievance procedure may consist of only two steps while in big organizations there
may be five or six steps.

As shown in the figure, the front line supervisor is given the first opportunity to
handle grievances. If the company is unionized, a representative of the trade union
also joins the supervisor in handling the grievance. This step is essential for
preserving the supervisor’s authority. But all grievances cannot be settled here
because they may be beyond the authority and competence of the supervisor. In the
second step, the human resource officer or some middle level executive along with
a high level union officer attempt to tackle the grievance. In the third step, the top
management and top union leader sit together to settle grievances involving
companywide issues. If the grievance remains unsettled it is referred to an outside
arbitrator for redressal.

Advantage of a Grievance Procedure

47
Grievances are natural in any organization. These should be solved as early as
possible; otherwise they can create serious problems for the organizations, the
industry and society. A systematic procedure should, therefore, be developed to
settle all grievances. Such a procedure provides the following benefits:

 It brings grievances into the open so that management can know them and
take necessary action to settle them.
 It helps in preventing grievances from assuming dangerous proportion.
Management can solve a grievance before it becomes a dispute. It is an
orderly and expeditious means for redressal of grievances.
 It enables the management to know the attitudes and feelings of employee
concerning the policies, rules and practices of the organization.
 It provides the workers a formal opportunity for expressing their fears,
anxiety and dissatisfaction.
 Such release of emotions helps to improve the morale and productivity of
employees.
 It helps to maintain cordial relations in the industry. It brings uniformity in
the handling of grievances.
 It also stimulates confidence in employees and builds a sense of security
among them.
 It enables both the parties to settle the grievances to their mutual
satisfaction.
 It serves as a check upon arbitrary and biased action on the part of
management.
 Managers know that their actions can be reviewed and challenged and,
therefore, become more careful.

48
 Essentials of a Sound Grievance Procedure

1. Legal Sanctity. The procedure should be in conformity with the existing

law. It should be designed to supplement the statutory provisions. Wherever
possible, the procedure should make use of the machinery provided under
legislation. The procedure may be incorporated in the standing orders or
collective bargaining agreement of the organization.
2. Acceptability. The grievance procedure must be acceptable to all and
should, therefore be developed with mutual consultation among
management, workers and the union. In order to be generally acceptable, the
procedure must ensure:
(a) A sense of fair play and justice to workers;
(b) Reasonable exercise of authority to managers; and
(c) Reasonable participation to the union.

3. Promptness. The grievance procedure must aim at speedy redressal of

grievances. This can be ensured in the following ways:
(a) As far as possible the grievance should be settled at the lowest level;
(b)There should be only one appeal;
(c) Time limits should be prescribed and rigidly enforced at each level;
(d)Different types of grievances may be referred to appropriate authorities.

49
4. Simplicity. The procedure should consist of as few steps as possible.
Channels for handling grievances should be carefully developed. Employees
must know the officers to be contacted at each level. Information about the
procedure should be communicated to the employees.

5. Training. Supervisors and unions representatives should be given training in

grievance handling. This will help to ensure effective working of the
grievance procedure.

6. Follow-up. The working of the grievance procedure should be reviewed at

periodical intervals. Necessary improvements should be made to make the
procedure more effective.

50
 Grievance Redressal in Indian Industry

In Indian industry, adequate attention has not been paid to the settlement of
grievances, legislative framework only indirectly deals with the redressal of
individual grievances. It consist of:

1. The Industrial Employment (Standing Orders) Act, 1946. It provides

that every establishment employing 100 or more workers should frame
standing orders which should contain, among other matters, provisions for
means of redressing the workers against unfair treatment or wrongful
exactions by the employer or his agents or servants.
2. The Factories Act, 1948. It provides for the appointment of welfare officers
in every factory wherein 500 or more workers are ordinary employed. These
officers are generally entrusted with the task of dealing with grievances and
complaints.
3. The Industrial dispute Act, 1947. This law provides:

(i) The employer in relation to every industrial establishment in which fifty

or more workmen employed shall provide for a Grievance settlement
Authority for the settlement of industrial disputes connected with an
industrial workman employed in the establishment. The provision of this
Authority shall be in accordance with rules made in that behalf.

51
(ii) Where an industrial dispute connected with an individual workman
arises in an establishment referred to above, a workman or any trade
union of workmen of which such workmen is a member may refer such
dispute to the Grievance settlement Authority for settlement.
(iii) The Grievance settlement Authority shall follow such procedure and
complete its proceedings within such period as may be prescribed.
(iv) No reference shall be made to Boards, Courts or Tribunals of any dispute
referred in this section unless such dispute has been referred to the
Grievance settlement Authority concerned and the decision of the
authority is not acceptable to any of the parties to dispute.

52
 Guidelines

When processing grievances, there are several important guidelines to consider:

 Check the grievant’s title and employment status to determine if he / she are
included in a union eligible classification.
 Note the supervisor’s respondent obligation under the grievance procedure.
 Review the requested solution to the grievance. Determine if the relief
sought is beyond a supervisor’s authority to grant.
 Review all policies or other information related to the grievance.
 Conduct a thorough investigation of the allegations.
 Prepare a written response including the reason for the decision and provide
a copy to the grievant.
 Grievance materials should be maintained in a separate file from either
personnel files or records.

53
 Precautions and Prescriptions
The management should take care of following aspects to develop a culture of trust
and confidence upon the employees. 

 Always ensure that the managers involved in the grievance handling

procedures have a quiet place to meet with the complainant. 

 Always ensure that managers have adequate time to be devoted to the

complainant. 

 Explain manager's role, the policy and the procedures clearly in the
grievance handling procedure. 

 Fully explaining the situation to the employee to eliminate any

misunderstanding and promote better acceptance of the situation complained
of. 

 Try to let employee present their issues without prejudging or commenting.

 Do use a positive, friendly ways to resolve the crisis than punitive steps,
which disturb the system. 

 Do remain calm, cool, collected during the course of the meeting. 

 Always focus on the subject of the grievance than allied issues. 

 Don't make threats manage the grievances. 

54
 Never make use of allegations against personalities. 

 Be aware of the staff member's potential concerns to the possible

repercussions of raising a grievance. 

 Don't become angry, belligerent, or hostile during grievance handling

procedure. 

 Do listen for the main point of arguments and any possible avenue to
resolve the grievance. 

 Listen and respond sensitively to any distress exhibited by the employees.

 Eliminating the source of the irritation or discomfort being complained of.

 Reassure them that the managers will be acting impartially and that your
hope is to resolve the matter if possible. 

 Don't "horse trade" or swap one grievance for another (where the union wins
one, management wins one). Each case should be decided on its merits.  

 Ensure effective, sensitive and confidential communication between all

involved.

 Take all possible steps to ensure that no victimization occurs as a result of

the grievance being raised. 

 The investigator or decision maker acts impartially, which means they must
exclude themselves if there is any bias or conflict of interest. 

 All parties are heard and those who have had complaints made against others
are given an opportunity to respond.

55
 Try to look upon the problem on different angles for appropriate
understanding.

 Ensuring that there is proper investigation of the facts and figures related the
problem under concern.  

 Ask the staff member their preferred resolution option, although it is

important to make it clear that this may not be a possible outcome. 

 Be aware of the limits of authority of the person who involved in the

grievance handling procedures. 

56
 OBJECTIVES OF THE STUDY

 SCOPE OF THE STUDY

57
 OBJECTIVES OF THE STUDY

 To identify whether the employees are aware of the grievance handling

mechanism.

 To identify whether the grievance handling system leads to a favorable

attitude towards the management

 To identify that the grievance handling system leads to a mutual

understanding between workers and the management

 To know the level of satisfaction towards the grievance handling procedure

of the organization

 To identify the factors influencing the effectiveness of the grievance

handling in the organization

58
 SCOPE OF THE STUDY

 The project throws light on need for Grievance handling mechanism and this
study facilitates the management for further improvement on the same.

 This study will be useful when similar kind of research is undertaken.

59
RESEARCH METHODOLOGY

60
 Resear ch Met hodol ogy, f or a st udy l i ke t hi s r esear ch pr oj ect
i s a m ost i m por t ant par t . T he m et hod of st udy adopt ed by m e i s
t ot al l y i s to i ncr ease & t o gat her t he m or e inf or m at i on regar di ng
t hi s resear ch.

T he m aj or em phasi s i n such st udi es i s on t he di scover y of t he

i deas & fr ui t f ul r el evant i nf or m at i on. As such t he resear ch desi gn
appr opr i at e for such st udi es m ust be f l exi bl e enough t o pr ovi de
oppor t uni t y f or consi der i ng di f f er ent aspect s of a pr obl em under
st udy.

METHODS OF DATA COLLECTION:

(A) PRIMARY DATA:

S ur vey m et hod -- T hi s m et hod was adopt ed because i t hel ped
i n secur i ng det ai l i nf or m at i on fr om a sam pl e of r espondent s.
T he i nf or m at i on r ecei ved f rom t he r espondent s i s recor ded on
a f or m cal l ed t he quest i onnai r e. Thi s i s onl y m et hod t o
m easur e at t i t ude & m oti vat i on di r ect l y.

Open fr am ed di scussi on wi t h em pl oyees.

B) S ECO NDARY DATA:

I have al so used t he secondar y dat a, whi ch incl uded t he
wr i t t en docum ent of t he m any banks.

I NT E RNET
P AP E RS & RE CORDS
BOOKS

61
 T he dat a col l ect ed fr om t he above m ent i oned sour ces
hel ped me in get t i ng i nf orm at i on about the “E MPL OYE E
GRI E VANCE HANDLI NG”.

SAMPLING PLAN:

Sample Design

Sample Element : Employees at SYNDICATE BANK.

Sample Size : 35 samples

Sample Test : Percentage Method

Sample Media : Questionnaire

Sampling Method : Simple Random Sampling

62
Distribution of respondents based on age

63
S.I. No. Age Frequency Percentage

1 26-30 9 25.7

2 31 & 26 74.3
Above

Total 35 100

Inference:

From the above table it is inferred that 25.7% of respondents are between the age group 26-30
and 74.3% are between the age group 31 & above.

Distribution of respondents based on age

Distribution of respondents based on age

26-30
26%

31 & above
74%

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 Distribution of respondents based on qualification

SI. No. Qualification Frequency Percentage

1 Higher 5 14.
Secondary

2 Under 10 29.0
Graduate

3 Post 20 57.0
Graduate

Total 35 100

Inference:

From the above table it is inferred that 14% of respondents are qualified up to higher secondary,
29% of respondents are under graduate and 57% are post graduate.

Distribution of respondents based on qualification

qualification
Higher Secondary
14%

Post Graduate Under Graduate

57% 29%

Distribution of respondents towards awareness of committees

65
 Sl.No Awareness of Frequency Percentage
committees

1 Yes 35 100.0

Total 35 100

Inference:

From the above table it is inferred that 100% of respondents are aware of the various committees
that are framed for redressing their grievance.

Distribution of respondents towards awareness of committees

various committee
120

100

80

60

40
P e rce n t

20

0
yes

various committee

Distribution of respondents towards real basis of identification of their grievance

66
 Sl.No. Real basis Frequency Percentage

1 strongly
agree
20 57.1

2 Agree 15 42.9

Total 35 100

Inference:

From the above table it is inferred that 57.1% of respondents strongly agree that real basis is identified
and 42.9% of respondents agree that real basis is identified.

Distribution of respondents towards real basis of identification of their grievance

real absis identified

strongly agree agree

43%
57%

Distribution of respondents regarding to the complaints to the higher authority

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 SI No. Complaint No. of Percentage
to higher respondents
authority

1 Listen 35 100
patiently

Total 35 100

Inference:

From the above table it is inferred that 100% of respondents are satisfied that his grievance listen
patiently by the higher authority.

Distribution of respondents regarding to the complaints to the higher authority

listen patiently
%

100%

Distribution of respondents regarding Temporary relief

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 Sl. No Temporary No. of Percentage
relief respondents

1 Yes 19 54.3

2 No 16 45.7

Total 35 100

Inference:

From the above table it is inferred that 54.3% of respondents state that they are being provided
with temporary relief and 45.7% stating they are not being provided relief.

Distribution of respondents regarding Temporary relief

temporary relief
60

50

40

30

20
Pe rce n t

10

0
yes no

temporary relief

Distribution of respondents towards mechanism followed resolves grievance or not

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 SI No. Mechanism No. of percentage
Resolve respondents
grievance
or not

1 Yes 35 100

Total 35 100

Inference:

From the above table it is inferred that 100% of respondents agree that mechanism resolves grievance

Distribution of respondents towards mechanism followed resolves grievance or not

mechanism resolves grievance

1
100%

Distribution of respondents regarding whom they redress for grievance

70
 to whom to redress

head office
regional office
union member

Distribution of respondents towards the maintaining the record of grievance

71
 Sl.No. Maintain No. of Percentage
the record respondent
of
grievance

1 Yes

18 51.43

2 No 17 48.57

Total 35 100
Inference:

From the above table it is inferred that 51.43%

of respondents say that maintaining the record of grievance and 48.57% of respondents say that
not maintained the record of grievance.

Distribution of respondents towards the maintaining the record of grievance

maintain the record of grievance

yes no

49%
51%

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 Distribution of respondents towards in case of his grievance not redressed go to court or
not

Sl.No. Go to court No. of Percentage

respondent

1 Yes

26 74.29

2 No 9 25.71

Total 35 100

Inference:

From the above table it is inferred that 74.29% of respondents say that in case of his complaint is
not redressed go to court and 25.71% of respondents say not go to court.

go to court
yes no
26%

74%

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74
 FINDINGS OF THE STUDY

1. 74.3% of the employees are the age group 31 & above.

2. 57% of employees are qualified up to post graduate.
3. 100% of employees are aware of the various committees that are framed for
redressing their grievance.
4. 57.1% employees are satisfied of real basis of identification of their
grievance.

5. 100% employees supported the process of grievance to the higher authority.

6. 54.3% of respondent’s state that they are being provided with temporary
relief until final decision is taken.

7. 100% of respondents are aware of the various committees that are framed
for redressing their grievance.

8. 100% resolve process of grievance is in the bank.

9. 100% employees redress to various authorities.

10.51.43% employees maintain the record of grievance.

11.74.2%respondents towards in case of his grievance not redressed go to court.

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76
 SUGGESTIONS AND RECOMMENDATIONS

1. Job descriptions, responsibilities should be as clear as possible. Everyone

should be informed of company’s goals and expectation including what is
expected from each individual.
2. Informal counseling helps to address and manage grievances in the
workplace.
3. Conflict management in the organization will be helpful to reduce the
number of grievance rates.
4. Open door policy can be used. The barriers that exist between the various
categories are to some extent broken by personal contact and mutual
understanding.
5. Suggestion boxes can be installed. This brings the problem or conflict of
interest to light.
6. Accident rates, Requests for transfers, Resignations, and disciplinary cases
should be analyzed since they reveal the general patterns that are not
apparent.
7. Temporary relief can be provided so that the delay does not increase his
frustration and anxiety and thereby not affecting his / her morale and
productivity.

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78
 CONCLUSION

The study reveals that the Grievance handling mechanism is satisfactory. The
organization is recognizing the importance of satisfying the employees and
retaining them. Further improvements can be made so that all members are
highly satisfied with the procedure. The suggestions and recommendations when
implemented will still more benefit the organization.

79
QUESTIONNAIRE
80
“A study of Grievance Handling Procedure in Banks with Special
Reference to Syndicate Bank, Agra”

1. Name:

2. Gender:

i.Male [ ] ii.Female [ ]

3. Age:
i.19-25 [ ] ii.26-30 [ ]

iii.31 and above[ ]

4. Educational qualification:

i.Higher secondary[ ] ii.Diploma [ ]

iii.Under graduate [ ] iv.Post graduate [ ]

5. What are the various causes of grievances

(i)Working condition [ ]

(ii)Partial treatment in placement, transfer, training, promotion [ ]

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 (iii)Non adherence of various labor laws such as:

-Industrial dispute act [ ]

-Bonus act [ ]

-Maternity benefit act[ ]

-Gratuity Act [ ]

-Provident fund and misc. provision act [ ]

-Various bipartite settlements [ ]

6. Are you aware of the various committees that redress the grievance?
i.Yes [ ] ii.No [ ]

7. If yes for above question kindly list out the various committees available.

8. Are you aware of the weekly/monthly meetings of the various committees which
are being held?

i.Yes [ ] ii.No [ ]

9. In case the grievance has to be immediately redressed to whom do you communicate?

10. Is the real basis of your problem identified?
iStrongly agree [ ] ii.Agree [ ]

iii.Disagree [ ] iv.Strongly disagree[ ]

82
11. Does your higher authority listen when your grievance is presented?
i.Listens patiently [ ] ii.Shouts at you[ ]

iii.Does not listen at all[ ]

12. Is importance given to what is right rather than who is right?

i.Yes[ ] ii.No[ ]

13. Are you constantly informed on what is being done about your grievance?
i.Very often being informed[ ] ii.Seldom being informed [ ]

iii.Does not inform at all [ ]

14. Is an atmosphere of cordiality and co-operation facilitated through mutual discussion and
conference?
i.Yes[ ] ii.No[ ]

15. Is there a positive and friendly approach during grievance handling?

i.Yes[ ] ii.No[ ]

16. Is there regular follow up to ensure that the right decision has ended up in satisfaction?
i.Yes[ ] ii.No[ ]

17. Is there any temporary relief provided until proper decision is made so that it does not raise any
adverse effects within the organization?

i.Yes[ ] ii.No[ ]

18. Do the various committee members actively engage in resolving your problem?

83
 i.Yes[ ] ii.No[ ]

19. If the decision is not satisfactory are you given opportunity to take it to higher officials?

i.Yes[ ] ii.No[ ]

20. Are the matters relevant to the grievance kept confidential?

i.Highly confidential[ ] ii.Not kept confidential[ ]

21. Are proper records maintained on each grievance?

i.Yes[ ] ii.No[ ]

22. If the grievance is not redressed even by highest authority, do you have option to go to court:

i.Yes[ ] ii. No[ ]

23. What are various adjudication machinery available to you for redressal of your grievance?

84
BIBLIOGRAPHY
85
HUMAN RESOURCE MANAGEMENT -- C.B. GUPTA

HUMAN RESOURCE AND PERSONNEL MANAGEMENT--ASWATHAPPA

WEB SITES:

www.syndicatebank.in

www.google.com

www.scribd.com

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