Home - Banking News - Syndicate Banks’ to Offer 25% Discount on Employee Stock Purchase Plan (ESPP)

Syndicate Banks’ to Offer 25% Discount on Employee Stock Purchase Plan (ESPP)

Syndicate Bank’s MD & CEO Mrutyunjay Mahapatra has said that the bank will raise Rs 300-350 crore capital by issuing shares to employees at a 25% discount to market price under a proposed employee stock purchase Plan (ESPP). The bulk of the shares will be available to all employees, a portion of the issue will be part of a differentiated sale.

Bank is also planning a differentiated employee stock purchase plan as a performance incentive where employees will get to buy shares at varying discounts and varying quantities. He further added that bank does not want to dilute equity in the market at current prices hence giving opportunity to employees.

Read – Deposit Online To Sukanya Samriddhi Account Using Syndicate Bank Internet Banking ?

Recently SyndciateBank had received Rs 728 crore as capital infusion from the government.

Earlier, Syndicate Bank MD & CEO has tweeted  “Syndicate Bank’s strengths are customer loyalty, personalized service and frugal tech innovation.Bank will use the fintech challenge route to make a push into digitization.

Syndicate Bank loan portfolio is somehow non risky as the bank currently has 20% of its loans in retail, 15-16% in agriculture, 16% in small businesses and 30% in corporate loans. Around 10% of its advances are to finance companies.

“The interest rates being charged to finance companies are currently higher than what the rating indicates. This means either the risk is not reflected or there is a lack of confidence,” said Mahapatra.

Future Plan of SyndicateBank

Regarding future plan of SyndicateBank, he hinted that the bank will rejig its advances portfolio and shift loans to higher-rated assets to conserve capital, while profits will be protected by bringing down the cost of funds.

Read – How To Open Online Saving Bank Account of Syndicate Bank ?

He is also planning to relocate few of the branches to to higher growth areas in order to get cheap deposits in terms of  current and savings accounts deposits (CASA).

He is also planning to consolidate or shift the Corporate Office of Syndicate Bank at one location at Bangalore. Currently Bank’s is managed from different offices in and around the bangalore and from Manipal. 

Bank is also planning to thrust on growing fees by tying up with third-party financial service providers.

SyndicateBank does not have any baggage in terms of its own subsidiaries in either insurance, mutual funds or credit cards.

Get Daily Updates On Banking, Enter your email address:

For the latest Banking updates, follow AskBankings on Twitter, Facebook, and subscribe to our YouTube channel

One comment

Do You Want To Say Something :