Professional Documents
Culture Documents
1
DATA ANALYSIS AND FINDINGS
The comparative study of SYNDICATE BANK home loan products and process was
conducted with similar services offered by other financial institutions. The study was done on
the leading market players like ICICI, SBI, AXIS Bank etc. The study illustrates prevailing
rate of interests, percentage of funding, tenure of home loan and fees , documentation and
repayment options features etc being launched in other banks .
B) Financial Analysis
The study of Balance Sheet and Profit and loss A/c of SYNDICATE BANK Ltd. for two
years i.e2017-2018 and 2018-14.The financial statements for these two years help me out in
preparation of Ratio Analysis and Cash Flow Statement of SYNDICATE BANK Ltd.
From this study of Ratio Analysis and Cash Flow Statements to interpret the results that the
future of SYNDICATE BANK Ltd. is bright.
2
BUSINESS PROFILE(for self employed people)
3
RATE OF UPTO 30 LAC – UPTO 30 LAC – UPTO 5 YEARS – UPTO 30
INTEREST 8.75% 8.75% 9% LACS
30- 50 LACS – 30- 50 LACS 5 – 10 YEARS – 1st YEAR –
9% – 9% 9.25% 8.25%
> 50 LACS – > 50 LACS – 10-15 YEARS – 2nd YEAR –
9.25% 9.25% 9.5% 9%
15- 25 YEARS – 3rd YEAR – 9%
9.5% MORE THAN
30 LACS
1st YEAR –
8.25%
2nd YEAR–
9.25%
3rd YEAR –
9.25
PROCESSING 0.5% OF LOAN 1% OF LOAN 0.5% OF LOAN 0.5% OF LOAN
FEES TAKEN TAKEN (.5% TAKEN + 1500 TAKEN ( IF
NEGOTIABLE LAWYERS FEES LOAN
FOR GOVT (NOT ALREADY
EMPLOYEES) NEGOTIABLE) EXIST THEN
NEGOTIABLE
.25%)
REPAYMENT A. MAX 60% OF BELOW 55 FOR FLAT/PLOT MAX 20
TERMS NET INCOME YEARS -MAX MAX YEARS - 20 YEARS OR 60
B.BELOW 55 20 YEARS YEARS YEARS OF
YEARS -MAX 20 REPAYMENT CONSTRUCTION AGE
YEARS PERIOD OR 65 MAX YEARS - 10
REPAYMENT YEARS OF AGE YEARS
PERIOD OR 65
YEARS
ELIGIBILITY 85% of the cost of 85% of the cost GROSS INCOME 85% of the cost
- 4 TIMES MAX
OF LOAN property OR 4 of property ( of property OR
NET INCOME - 5
AMOUNT times the amount below 30 lakhs) TIMES & 100% of the
MAX AMOUNT -
of income (Avg of OR 80% of the amount of
50 LACS &
3 years' income) cost of property FOR ( 7 registry.
METROS)- 100
(above 30 lakhs)
LACS
4
OWN SOURCE NIL NIL ( AFTER 6 90%
MONTHS) PREPAYMENT
ANYTIME
STARTING
FROM THE
REFINANCE 2% 2% NEXT MONTH
OF THE
LOAN. 17 EMI
TO RUN
AFTER THAT.
INSURANCE OF YES YES NO YES
THE PROPERTY (OPTIONAL) (OPTIONAL) (OPTIONAL)
AREAS OF Any area inside or Any area inside NOT OUTSIDE Any area inside
FUNDING outside tricity the or outside tricity THE TRICITY or outside tricity
condition being it the condition the condition
should not have being it should being it should
been given on not have been not have been
GPA or through given on GPA or given on GPA
Share transfer through Share or through
transfer Share transfer
GURRANTOR Guarantor is NOT DEPENDS UPON NOT
required(one who REQUIRED CASE REQUIRED
is an Income Tax
Assessee and
he/she has to have
an account in
State bank of
india)
ADDITIONAL N/A DEPENDS DEPENDS UPON N/A
SECURITY UPON CASE CASE
BUSINESS
PROFILE(for
self employed
people)
5
BANKS AXIS BANK BANK OF INDIA SYNDICATE BANKLtd.
DOCUMENTS ALL SAME 1.PHOTOGRAPHS 1.BALANCE SHEET , P
2.IDENYITY PROOF & L AND ITR (LAST
3.LOCAL ADDRESS THREE YEARS)
PROOF 4.BANK 2. BUSINESS PROFILE
STATEMENT (LAST 3. COPIES OF
6 MONTHS) INDIVIDUAL TAX
5.ITR (LAST 3 CHALLANS FOR THE
YEARS) LAST THREE YEARS.
6.BALANCE SHEET 4. COPY OF ADVANCE
& P/L (LAST 3 TAX CHALLAN (IF
YEARS) ANY)
7.PROOF OF WORTH 5.BANK STATEMENT (
8.SALE LAST 17 MONTHS)
AGRREMENT
9.COPY OF
APPROVED MAP.
10ESTIMATION OF
CONSTRUCTION.
16. COPY OF TITLE
DEED & PREVIOUS
TITLE DEED
RATE OF UPTO 30 LACS -
INTEREST 8.75%
ABOVE 30
LACS – 9.25%
PROCESSING 0.5% OF LOAN .55% OF THE LOAN 1% OF LOAN AMOUNT
TAKEN
FEES AMOUNT
REPAYMENT MONTHLY EMI 15 YEARS - 1029 MAX TO 20 YEARS
FOR 25 YEARS
TERMS PER LACS 10 YEARS
- 822
FOR 20 YEARS - 1767 PER LACS
- 884
FOR 15 YEARS
- 999
FOR 10 YEARS
– 1753
6
ELIGIBILITY 85% OF THE 75% OF THE COST A. IIR (INCOME
OF LOAN COST OF OF PROPERTY OR 4 INSTALMENT RATIO)
AMOUNT PROPERTY OR TIMES LAST THREE = EMI/GROSS INCOME
55% OF THE YEARS AVERAGE MAX 40%, IN CASE
NET INCOME ANNUAL INCOME MORE EMI REDUCE
B. FOIR
= ALL
OBLIGATION/GROSS
INCOME , MAX
TO 35%
OWN SOURCE
REFINANCE NIL NIL
INSURANCE OF NIL 0.65% YES (OPTIONAL)
THE
PROPERTY
AREAS OF YES REQUIRED FOR APPROVED PROJECTS
FUNDING (OPTIONAL) BUILDING NOT FOR ONLY & FLATS
LAND TRANSFERABLE ON
GPA & ALSO FUNDED
WITH ADDITIONAL
SECURITY i.e 1.5
TIMES THE GPA
PROPERTY
GURRANTOR Any area inside Any area inside or DEPENDS UPON CASE
or outside tricity outside tricity the
the condition condition being it
being it should should not have been
not have been given on GPA
given on GPA or
through Share
transfer
7
ADDITIONAL NOT LOCAL DEPENDS UPON CASE
SECURITY REQUIRED GURRANTOR IN
CAES OF OUTSIDE
TRICITY, MIGHT
REQUIRE KEEPING
THE PROPERTY
INTO
CONSIDERATION
8
COMPARATIVE ANALYSIS OF VARIOUS BANKS FOR HOME LOANS (for
employed people)
STANDARD BANK OF INDIA. SYNDICATE
CHART. BANKLIMITE
D
Maximum loan amount 75% of the cost of 75% of the cost of 85% of the cost
the property Property or four of property
times the avg income
of last three years
Rate of interest: (
FLOATING )
below 30 lakhs 8.5% floating 9.25%(for 10 years n till 30th june all
above) applications
received can be
locked in under
dual rate. March
2016 - 8.25%,
Till March 2017
- 9% 3rd year
onwards Floating
30 lakhs - 50 lakhs 9% ( for below 10 rate( PLR-
years) 4.75%)
more than 50 lakhs housing loan:
upto 30 lakhs-
8.75%, 30 - 50
lakhs -9%, above
50 lakhs - 9.25%
Plot loan: Upto
30 lakhs -
9.25%, 30 - 50
lakhs - 9.5%,
above 50 lakhs -
9.75%
9
following loans
are given when
the person has
home loan
Equit loan ( loan
against property)
16.25%
top up loan -
10.25%
education loan -
upto 30 lakhs -
9.75%, 30 - 50
lakhs -10%,
above 50 lakhs -
10.25%
Processing charges 0.55% 1% of the loan
amount
Pre-payment charges: 51,229.20 fixed: 2% if the
amount being
10
Insurance of the property required for required for building optional
building not for land
Area of funding anywhere except any area but the
GPA project has to be
approved by the
MC. GPA
property is also
financed but
with an
additional
security of 1.5
times the cost of
the GPA
property.
Guarantor depends on case to local guarantor in depends on case
case case of outside tricity. to case
Might require a
guarantor in tricity
keeping property into
consideration.
Resale of the property
Additional documents sale agreement, copy area to be
of the title deed and
approved by MC
previous title deeds,
copy of the approved
map duly signed,
estimation of the
construction/
renovation cost, any
other statutory
permission as
required by the local
authority.
DOCUMENTS
REQUIRED:
(1)Income tax return with 3 3 3
computation (years)
11
(2)Balance sheet and 3 3 3
Income statement (years)
(3) Six months bank √ √ √
statement
(4) Residence proof √ √ √
(5) Pan card √ √ √
(6)Landline bill original √ √ √
(7) Business Profile not required not required √
(8) Property paper √ √ √
(9) Passport size √ √(applicant + √
photograph guarantor)
(10) R C Photocopies not required not required not required
COMPARATIVE
ANALYSIS OF
VARIOUS BANKS
FOR HOME LOANS
(for employed
people)
12
first year; 9%
for second
year; 9.25%
onwards
30 lakhs - 50 lakhs 9% 9% 9% 8.25% for
first year; 9%
for second
year; 9.25%
onwards
Refinance 2% nil 2%
13
Broken Interest √
Charges
Additional security not required not depends upon the not required
required case
14
Mutation approved by
copy, map and the MC
estimate
approved by
the authority
DOCUMENTS
REQUIRED:
(1)Income tax return 3 3 2 3
with computation
(years)
(2)Balance sheet and 3 3 2 3
Income statement
(years)
(3) Six months bank √ √ √ √
statement
(4) Residence proof √ √ √ √
(5) Pan card √ √ √ √
(6)Local Address not required not not required √
Proof required
(7) Business Profile √ not √ √
required
(8) Property paper √ √ √ √
(9) Passport size √ √ √ √
photograph
15
16
SYNDICATE BANKBANK LTD
RATIO ANALYSIS
Rs.53,59,17,46,262 = 2.018:1
Rs.26,56,16,40,847
Rs.18,76,16,65,268 = 0.651:1
Rs.28,83,36,87,487
17
2.ABSOLUTE LIQUID RATIO: ABSOLUTE LIQUID ASSESTS/CURRENT
LIABILITIES
Rs.5,22,41,47,60,065- Rs.5,85,606
Rs.26,56,16,40,847
= Rs.52,24,08,90,459 = 1.97:1
Rs.26,56,16,40,847
Rs.17,18,48,32,905 = 0.338:1
Rs.28,83,36,87,487
Note: 1.Absolute Liquid Assets =Cash And Bank Balance Except Cash With RBI
18
3.RATIOS OF LONG TERM DEBT TO SHAREHOLDERS’ FUND: LONGTERM
DEBT/SHAREHOLDERS’ FUND
Rs.8,77,71,97,08,058 = 5.78:1
Rs.1,51,97,65,86,590
Rs.7,59,54,90,10,918 = 5.78:1
Rs.1,31,37,38,78,518
19
4.PROPRIETORY RATIO: SHAREHOLDERS’ FUND/TOTAL ASSETS
Rs.1,51,97,65,86,590 .
Rs.16,17,62,96,74,904+ Rs.48,78,46,89,701
= Rs.1,51,97,65,86,590 = 0.180:1
Rs.16,66,41,43,64,605
Rs.1,31,37,38,78,518 .
Rs.9,69,93,46,86,387+ Rs.46,63,44,72,308
= Rs.1,31,37,38,78,518 = 0.179:1
Rs.10,16,56,91,58,695
20
5.FUNDED DEBT TO TOTAL CAPITALIZATION: FUNDED DEBT / TOTAL
CAPITALIZATION * 100
Rs.9,65,65,30,88,314 = 0.864:1
Rs.16,17,62,96,74,904
Rs.8,38,56,08,07,874 = 0.865:1
Rs.9,69,93,46,86,387
1. Total Capitalization =Share Capital As Per Schedule 1+ Reserve And Surplus As Per
Schedule 2+ Loans As Per Schedule 3
21
6.DEBT/EQUITY RATIO: OUTSIDERS’ FUND/SHAREHOLDERS’ FUND
OR
Rs.9,65,65,30,88,314 = 6.35:1
Rs.1,51,97,65,86,590
Rs.8,38,56,08,07,874 = 6.39:1
Rs.1,31,37,38,78,518
22
7.SOLVENCY RATIO: TOTAL LIABILITIES TO OUTSIDERS/TOTAL ASSETS
Rs.9,92,21,47,29,161 = 0.851:1
Rs.16,66,41,43,64,605
Rs.8,67,39,44,95,361 = 0.853:1
Rs.10,16,56,91,58,695
Note: 1.Total Liabilities To Outsiders= Loan Funds As Per Schedule 3 +Current Liabilities And
Provisions As Per Schedule 7 (Except Provisions Under Schedule 7)
23
8.FIXED ASSETS TO NET WORTH RATIO: FIXED ASSTS (AFTER
DEP.)/SHAREHOLDERS’ FUND
Rs.2,22,16,41,618 = 0.0146:1
Rs.1,51,97,65,86,590
Rs 2,03,40,51,342 = 0.0155:1
Rs 1,31,37,38,78,518
24
9.FIXED ASSET RATIO:
OR
Rs.2,22,14,16,618 = 0.0022:1
Rs.10,29,69,62,94,648
Rs.2,03,40,51,342 = 0.0023:1
Rs.8,90,92,28,89,431
2.Total Long Term Funds= Share Capital As Per Schedule 1+ Reserves And Surplus As
Per Schedule 2+ Loan Funds As Per Schedule 3
D)Commercial Paper(Unsecured)
25
10.RATIO OF CUURENT ASSETS TO PROPRIETORS’ FUND: CURRENT
ASSETS/SHAREHOLDERS’ FUNDS
Rs.53,59,17,46,262 = 3.354:1
Rs.1,51,97,65,86,590
Rs.18,76,16,65,268 = 0.143:1
Rs.1,31,37,38,78,518
26
16.RETURN ON SHAREHOLDERS’ INVESTMENT OR NET WORTH: NET
PROFIT AFTER INTEREST AND TAX/SHAREHOLDERS’ FUND*100
Rs.28,26,48,98,200*100 =18.60%
Rs.1,51,97,65,86,590
Rs.22,82,54,27,543*100 =17.37%
Rs.1,31,37,38,78,51
Note:1.Net Profit = Net Profit After Interest And Tax Taken As Per Profit And Loss Account.
27
17.EARNING PER SHARE (EPS): EARNING AVAILABLE TO EQUITY
SHAREHOLDER/NUMBER OF EQUITY SHARES
28,71,10,222 Shares
28,44,53,910 Shares
Note:1.Earning Available To Equity Shareholders’= Net Profit After Interest And Tax Taken
As Per Profit And Loss Account.
2.Number Of Equity Shares= No. Of. Equity Shares Are Given In Share Capital As Per
Schedule 1
28
18.DIVIDEND PER SHARE: PROPOSED DIVIDEND/NUMBER OF EQUITY
SHARES
28,71,10,222 Shares
28,44,53,910 Shares
2.Number Of Equity Shares= No. Of. Equity Shares Are Given In Share Capital As Per
Schedule 1
29
14.DIVIDEND YIELD RATIO: DIVIDEND PER SHARE/MARKET PER SHARE
Rs.36*100 = 1.25%
Rs. 2876
Rs.30*100 = 1.17%
Rs. 2686
30
15.DIVIDEND PAYOUT RATIO: DIVIDEND PER SHARE/EARNING PER SHARE
Rs.36*100 = 36.57%
Rs.98.45
Rs.30*100 = 37.39%
Rs.80.24
31
16.PRICE EARNING RATIO: MARKET PRICE PER SHARE/EARNING PER
SHARE
Rs.2876 = 29.21:1
Rs.98.45
Rs.2686 = 33.47:1
Rs.80.24
32
17.RATIO OF FIXED ASSET TO FUNDED DEBT: FIXED ASSETS (AFTER
DEP.)/FUNDED DEBT
Rs.2,22,16,41,618 = 0.0025:1
Rs.8,77,71,97,08,058
Rs.2,03,40,51,342 = 0.0027:1
Rs.7,59,54,90,10,918
33
18.RATIO OF FIXED ASSET TO FUNDED DEBT: FIXED ASSETS (BEFORE
DEP.)/FUNDED DEBT
Rs.5,24,45,57,998 = 0.0060:1
Rs.8,77,71,97,08,058
Rs.4,93,85,23,820 = 0.0065:1
Rs.7,59,54,90,10,918
34
19.RATIO OF RESERVE TO EQUITY CAPITAL: RESERVES AND
SURPLUS/EQUITY CAPITAL
Rs.1,49,10,55,23,520*100 = 98.16%
Rs.1,51,97,65,86,590
Rs.1,28,52,93,78,563*100 = 97.80%
Rs.1,31,37,38,78,518
Note:1.Reserve And Surplus Are Taken Per Schedule 2 Of The Balance Sheet.
35
20.RATIO OF CURRENT LIABILITIES TO PROPRIETORS’ FUND: CURRENT
LIABILITIES/ PROPRIETORS’ FUND
Rs.26,56,16,40,847 = 0.175:1
Rs.1,51,97,65,86,590
Rs.28,83,36,87,487 = 0.219:1
Rs.1,31,37,38,78,518
36
21.TOTAL INVESTMENT TO LONG TERM LIABILITIES: SHAREHOLDERS’
FUND + LONG TERM LIABILITIES/LONG TERM LIABILITIES’
Rs.1,51,97,65,86,590+ Rs.8,77,71,97,08,058
Rs.8,77,71,97,08,058
= 1.173:1
Rs.1,31,37,38,78,518+ Rs.7,59,54,90,10,918
Rs.7,59,54,90,10,918
= 1.1729:1
D)Commercial Paper(Unsecured)
37
22.FREE RESERVES PER SHARE: ALL FREE RESERVES/ NO. OF EQUITY
SHARES
Rs.44,15,89,06,746+ Rs.9,52,45,78,000
28,71,10,222
28,71,10,222
Rs.37,20,87,54,723+ Rs.5,20,45,78,000
28,44,53,910
28,44,53,910
Note:1.Free Reserves= General Reserve As Per Schedule 2+ Balance Of Profit And Loss
Account As Per Schedule 2
2.Number Of Equity Shares= No. Of. Equity Shares Are Given In Share Capital As Per
Schedule 1
38
23.RETURN ON GROSS CAPITAL EMPLOYED:NET PROFIT AFTER TAX and
PREFERENCE DIVIDEND/GROSS CAPITAL EMPLOYED*100
Rs. 1,51,97,65,86,590
Rs. 1,31,37,38,78,518
Note: 1.Net Profit = Net Profit After Tax And Preference Dividend Taken As Per Profit And
Loss Account.
39
24.RETURN ON NET CAPITAL EMPLOYED:NET PROFIT AFTER TAX and
PREFERENCE DIVIDEND/NET CAPITAL EMPLOYED*100
Rs. 1,25,41,49,45,743
Rs. 1,02,54,01,91,026
Note: 1.Net Profit = Net Profit After Interest And Tax Taken As Per Profit And Loss Account.
40
Current Year Previous year
(2017-18) (2016-17)
Rupees Rupees
Adjustment For:
Adjustments For:
41
B] CASH FLOW FROM INVESTING ACTIVITIES
-337600963 -91504610
42
Net Increase In Cash And Cash Equivalents 35290227205 9178485784
52246310166 16956082916
Cash And Cash Equivalents As At The End Of The
Year[As Per Note 8(i)] ========== ==========
43
Schedule March 31,2009
SOURCES OF FUNDS
SHAREHOLDERS' FUNDS
151976586590 181873878518
1617629674904 969334686387
APPLICATION OF FUNDS
FIXED ASSESTS 8
1617629674904 969934686387
44
Notes Forming Part of Accounts 14
2018
45
CHAPTER-5
FINDING
SUGGESTIONS
CONCLUSION
46
FINDINGS
From this project it is found that SYNDICATE BANK Home Loans having the 1st place
in the market at Luck now, but SYNDICATE BANK also working hard for for improving
their market share in home loan segment so they are the main threat or competitor.
It has been observed that a person first of all come to the SYNDICATE BANK for
sanctioning their loan but bad response from SYNDICATE BANK force them to switch to
the other bank.
All of SYNDICATE BANK customers are satisfied with the services provided by the
bank.
Many of these customers are well aware of SYNDICATE BANK and their home loan
product and satisfied with the low interest rate and longer repayment period of the advance
product.
Most of the customers at Luck now feels that SYNDICATE BANK really trying hard for
improving their services.
Approximately 43% of advance product users said that the service of SYNDICATE
BANKin advance product is excellent.
Many customers have no time to call customer care so that they are not able to know
about the service & features of SYNDICATE BANK advance product.
Most customers are shifted from other bank’s advance product to SYNDICATE BANK
because of hidden charges, high interest rate, less repayment period.
Government employees are more concern than private employees for advance product.
47
SUGGESTIONS
All one need is the courage to innovate, the skill to understand clientele and the desire to give
them the best .Likewise following are some of the suggestions which would help
SYNDICATE BANK in improvising their working styles and performance.
Most of the customers face problems regarding the rate of interest. SYNDICATE BANK
must inform its customers about the change in ROI, It automatically changes but there is
decrease in rate of interest , it doesn’t change automatically.
Any change in the policies must be intimated to all the customers .SYNDICATE BANK
should provide proper information to its customers.
There is lot of formalities in the loan disbursement process .Too much documentation is
done . Customer is no aware of all the formalities. Therefore paperwork should be more
friendly and clear .
Customers should be given proper information about EMI. They are generally not told
how their EMI are calculated they should know EMI is calculated and of what amount.
After sale service is an issue of concern. Customers facing problems are not attended on
time. Employees are generally cooperative only when the loan is sanctioned and
disbursed. Therefore after sale service should be improved up to the satisfaction level of
the customer.
Website of SYNDICATE BANK should give more options and features to customers so
that they get maximum information sitting at home
Employees of SYNDICATE BANK should be more prompt towards customer’s
grievances and problems
SYNDICATE BANKshould provide personalized services to customers.
Comparative pricing in terms of lower interest rates and front end changes should be
adopted.
Company should enter into tie ups with reputed builders and development authorities.
SYNDICATE BANK should increase their reach by penetrating into rural and semi urban
areas .They should also capitalize on present customer base by generating referrals
Aggressive marketing and great publicity through newspapers, hoarding, websites and
other medias should be done.
48
CONCLUSION
I have studied the attached Balance Sheet of SYNDICATE BANKBANK LTD (“the
Corporation”) as at March 31, 2015,
The Profit and Loss Account and the Cash Flow Statement of the Corporation for the year ended on
that date, both annexed thereto & have made an interpretation of the company via ratio analysis.
I have come to the conclusion that the company is on the high level of success. It is growing day by
day. Its long term as well as short term stability is solid. It is capable of generating more & more
returns in coming future. After analyzing, I have no doubt that if in coming future any contingent
liability raises before company, it is able to face the challenge. Moreover the investors & creditors
(short & Long Term) both are satisfied by the company because it is declaring high profits & returns
& repaying creditors in tim
49
BIBLIOGRAPHY
3. www.icicibank.com
4. http://www.icicibank.com/pfsuser/loans/homeloans/hlhomepage.htm
www.wikipedia.org
www.google.com
www.syndicatebank .com
www.icici.com
www.ansalapi.com
www.moneycontrol.com
www.icicibank.com
www.iciciinsurance.com
www.icicifund.com
www.iciciergo.com
www.icicirealty.com
www.credila.com
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51