{df` gyMr CONTENTS dm{f©H$ [anmoQ>© Annual Report 2016 – 2017 n¥îR> Page n¥îR> Page • à~§Y {ZXoeH$ Ed§ _w»` H$m`©H$mar A{YH$mar H$m dŠVì` • boIm g§~§Yr {Q>ßn{U`m± Notes on Accounts 203 Managing Director & CEO’s Statement 3 • ZH$Xr àdmh {ddaU Cash Flow Statement 224 • {ZXoeH$m| H$s [anmoQ>© Directors’ Report 15 • g_o{H$V VwbZ-nÌ Consolidated Balance Sheet 226 • H$m°anmoaoQ> A{^emgZ na [anmoQ>© • qgS>~¢H$ g{d©goO {b{_Q>oS> SyndBank Services Limited 271 Report on Corporate Governance 84 • B©grEg g§~§Yr n[anÌ Circular regarding ECS 283 • III 2017 ~mgob - àH$Q>rH$aU - _mM© • ECS Mandate Form 285 Basel III Disclosures – March 2017 156 B©grEg A{YXoe \$m°_© • \$m°_© 2~r Form 2B 287 • boImnarjH$m| H$m à{VdoXZ Auditors’ Report 181 • H$m°anmoaoQ> A{^emgZ _| h[aV nhb: H$mJµO a{hV • VwbZ-nÌ Balance Sheet 184 Green Initiative in Corporate Governance: 289 • bm^ d hm{Z boIm P & L Account 185 Go Paperless • boIm| H$s AZwgy{M`m± Schedules to Accounts 186 • nVo _| n[adV©Z H$m \$m°_© Change of Address Form 290 • _hËdnyU© boIm§H$Z Zr{V`m± Significant Accounting Policies 192 • AàXÎm bm^m§e Unpaid Dividends 292 {ZXoeH$ _§S>b BOARD OF DIRECTORS lr AéU lrdmñVd, à~§Y${ZXoeH$ Shri Arun Shrivastava, Managing Director and Ed§ _w»` H$m`©H$mar A{YH$mar Chief Executive Officer lr a{d e§H$a nmÊS>o`, H$m`©nmbH$ {ZXoeH$ Shri Ravi Shanker Pandey, Executive Director lr grEM Eg Eg _pëbH$mOw©Z amd, H$m`©nmbH$ {ZXoeH$ Shri CH S S Mallikarjuna Rao, Executive Director lr am Zm Xþ~o, {ZXoeH$ Shri R N Dubey, Director lr éÐ Zmam`U H$a, {ZXoeH$ Shri Rudra Narayan Kar, Director lr O`§V nwéfmoÎm_ JmoIbo, {ZXoeH$ Shri Jayant Purushottam Gokhale, Director gwlr d§XZm Hw$_mar OoZm, {ZXoeH$ Ms. Vandana Kumari Jena, Director lr Or a_oe, {ZXoeH$ Shri G Ramesh, Director lr H$_b {H$emoa qgKb, {ZXoeH$ Shri Kamal Kishore Singhal, Director lr gwZrb d{eîR>, {ZXoeH$ Shri Sunil Vashisht, Director boImnarjH$ Auditors _ogg© JUoeZ E§S> H§$nZr M/s Ganesan and Company _ogg© _{U`Z E§S> amd M/s Manian & Rao _ogg© nr Or ^mJdV M/s P G Bhagwat _ogg© Eg EZ H$nya E§S> Egmo{g`oQ²>g M/s S N Kapur & Associates _ogg© AJñVr E§S> Egmo{g`oQ²>g M/s Agasti & Associates a{OñQ´>ma Ed§ eo`a A§VaU EO|Q> Registrars & Share Transfer Agents H§$nZr g{Md The Company Secretary _ogg© H$mdu H§$ß`yQ>aeo`a (àm) {b{_Q>oS> M/s Karvy Computershare (P) Ltd. {ZdoeH$ g§nH©$ H|$Ð Investor Relations Centre `y{ZQ>: qg{S>Ho$Q>~¢H$ Unit: SyndicateBank qg{S>Ho$Q> ~¢H$ - H$manmoaoQ> H$m`m©b`, SyndicateBank - Corporate Office H$mdu gobo{Z`_ Q>m°da ~r, Karvy Selenium Tower B., 2 H«$mg, Jm§YrZJa 2nd Cross, Gandhinagar ßbm°Q> g§.31 go 32, JMr~m¡br Plot No. 31–32, Gachibowli Bengaluru - 560 009 (Karnataka) ~|Jbyé – 560 009 (H$Zm©Q>H$) {\$Zm§{e`b {S>pñQ´>ŠQ>, ZmZH$am_JwS>m Financial District, Nanakramguda, Tel 080 - 22283030 Xÿa^mf: 080 - 22283030 h¡Xam~mX – 500 032 Hyderabad 500 032 Fax - 080 - 22283030 - 080 - 22283030 Xya^mf: 040 67162222 `m Phone No. 040 67162222 or \¡$Šg E-mail: [email protected] (General) 040 67161516 (D) 040 67161516 (D) B©-_ob: [email protected] (gm_mÝ`) Investor Grievances: \$¡Šg: 040 23001153 Fax No. 040 23001153 {ZdoeH$ {eH$m`V: [email protected] Q>m°b \«$s Z§.: 1800-345-4001 Toll Free No. 1800-345-4001 [email protected] 1 2 à~§Y {ZXoeH$ Ed§ _w»` H$m`©H$mar A{YH$mar H$m dº$ì` MANAGING DIRECTOR & CEO’S STATEMENT {à` eo`aYmaH$mo, Dear Shareholders, AmnHo$ ~¢H$ H$s 18 dt dm{f©H$ Am_ ~¡R>H$ _| AmnH$m ñdmJV H$aZo Am¡a It gives me great pleasure in welcoming you all to the 18th Annual General Meeting of your bank and presenting the 31 2017 _mM© H$mo g_má df© Ho$ {bE AmnHo$ ~¢H$ Ho$ {ZînmXZ H$s _w»` highlights of your Bank’s performance for the year ended {deofVmE§ àñVwV H$aZo _| _wPo H$m\$s àgÞVm hmo ahr h¡& Bg Adga na, 31st March 2017. On this occasion, I would like to thank {dÎmr` df© 2016-17 Ho$ Xm¡amZ ~ohVa {ZînmXZ hm{gb H$aZo _| ~¢H$ H$mo each one of you for your continued support and loyalty which enabled the bank to perform better & turnaround gj_ ~ZmZo Am¡a bmJV _| H$Q>m¡Vr, J¡a-ã`mOr Am` _| d¥{Õ, IwXam, H¥${f with the net profit of `359 crore during the FY 2016-17 Ed§ E_EgE_B© joÌm| Ho$ A§VJ©V A{J«_m| _| d¥{Õ, ZB© {JamdQ>m| _| H$_r Am¡a by focusing on reduction in costs, increase in noninterest AZO©H$ AmpñV`m| H$s dgybr na Ü`mZ Ho$pÝÐV H$aVo hþE `359 H$amo‹S> income, increase in advances under Retail, Agriculture and MSME segments, containing fresh slippages and H$m {Zdb bm^ hm{gb H$aZo _| AmnHo$ {Za§Va g_W©Z Am¡a {Zð>m Ho$ {bE recovery of nonperforming assets. Before I proceed to _¢ Amn g^r H$m YÝ`dmX H$aVm hÿ±& AmnHo$ ~¢H$ H$s {ZînmXZ {deofVmE± present the performance highlights of your bank, I would àñVwV H$aZo go nhbo, _¢ AmnHo$ g_j gm_mÝ` _oH«$moBH$m°Zm°{_H$ Am¡a ~¢qH$J like to place before you the general macroeconomic & n[adoe H$m boImOmoIm aIZm MmhVm hÿ± {OgHo$ VhV AmnHo$ ~¢H$ Zo {dÎmr` banking environment under which your bank has performed in FY 2016-17. df© 2016-17 _| {ZînmXZ {H$`m h¡& ì`mnH$ Am{W©H$ Ed§ ~¢qH$J n[aÑí` Macroeconomic and Banking Overview {dÎmr` df© 2016-17 Ho$ Xm¡amZ, d¡{œH$ AW©ì`dñWm _Ü`_ Am¡a Ag_mZ During FY 2016-17, the global economy continued to grow at a moderate and uneven pace, constrained by J{V go ~‹T>Vr ahr, {Oggo {damgV _| {_br d¡{œH$ {dÎmr` g§H$Q>, ~«opŠgQ> both the legacies of global financial crisis, Brexit and a Am¡a H$B© ZB© MwZm¡{V`m| go hmoH$a JwOaZo H$mo _O~ya hmoZm n‹S>m& AmB©E_E\$ number of new challenges. According to IMF’s World H$s {dœ Am{W©H$ Ñ{ï>H$moU [anmoQ>© Ho$ AZwgma, d¡{œH$ d¥{Õ Xa df© 2016 Economic Outlook report, global growth is expected at 3.1 percent in 2016 and projected to pick up 3.5 percent in 3.1 _| à{VeV ahZo H$m AZw_mZ ahm Am¡a {Zdoe, {d{Z_m©U Ed§ ì`mnma _| 2017 due to long awaited cyclical recovery in investment, b§~o g_` go àVr{jV MH«$s` dmngr Ho$ H$maU df© 2017 _| ~‹T>H$a 3.5 manufacturing and trade. à{VeV hmoZo H$m AZw_mZ ahm& However, in the domestic front also, operating environment VWm{n, Kaoby joÌ _| ^r Am¡Úmo{JH$, ì`mnma Am¡a H¥${f joÌ _| X~mdJ«ñV remained a cause for concern with the industrial, trade pñW{V Ho$ gmW n[aMmbZ n[adoe qMVm H$m H$maU ~Zm ahm& ZB© and agriculture sector reeling under pressure. Private investment climate continues to be weak with lower new n[a`moOZmAm| H$mo bmJy H$aZo _| AmB© H$_r Am¡a ñW{JV n[a`moOZmAm| H$mo projects being commissioned and slower completion nyam H$aZo _| Yr_onZ Ho$ H$maU {ZOr joÌ Ho$ {Zdoe H$m _mhm¡b H$_Omoa ahm of stalled projects. The country continued to reel under h¡& Xoe, {Za§Va gyIo H$s pñW{V H$m gm_Zm H$aVm ahm h¡& drought situation. 3 BgHo$ ~mdOyX, AË`{YH$ Kaoby InV, ~ohVa ì`mnH$ Am{W©H$ {gÕm§Vm| Despite this, India has emerged as the fastest growing economy among large economies of the world due to its Am¡a EH$ gwYmadmXr gaH$ma O¡gr AnZr Am§V[aH$ e{º$`m| Ho$ H$maU ^maV intrinsic strengths such as strong domestic consumption, AmO {dœ H$s ~‹S>r AW©ì`dñWmAm| Ho$ ~rM g~go VoµOr go ~‹T>Vr hþB© greater macroeconomic fundamentals and a reform AW©ì`dñWm Ho$ ê$n _| C^am h¡& 28 \$adar 2017 H$mo àH$m{eV grEgAmo oriented government. As per CSO data published on 28th February 2017, India’s GDP growth rate for the third quarter 2016-17 3 S>mQ>m Ho$ AZwgma, {dÎmr` df© H$s Vrgar {V_mhr (Š`y ) _| (Q3) of FY 2016-17 grew at 7 percent as compared to 7.5 ^maV Ho$ gH$b Kaoby CËnmX H$s d¥{Õ Xa 7 à{VeV hmo JB© Omo {nN>bo df© percent in the corresponding period of last year. H$s Bgr Ad{Y _| 7.5 à{VeV Wr& Due to challenging operating environment, the Indian MwZm¡VrnyU© n[aMmbZ n[adoe Ho$ H$maU, {dÎmr` df© 2016-17 Ho$ Xm¡amZ banking industry faced relatively subdued credit growth, ^maVr` ~¢qH$J CÚmoJ Zo AnojmH¥$V _§X F$U d¥{Õ, X~mdJ«ñV AmpñV`m| increasing stressed assets, lowering profitability and deteriorating capital positions during FY 2016-17.