PNB Report

69
1 TRAINING REPORT ON CURRENT ACCOUNT ANALYSIS IN PUNJAB NATIONAL BANK Submitted to MAHARSHI DAYANAND UNIVERSITY,ROHTAK In partial fulfillment of the requirement For the award of the degree of MASTER OF BUSINESS ADMINISTRATION (INDUSTRY INTEGRATED) (II Semester) Submitted by Name: Sukrit Goel Regn. No. Roll No. Tecnia Institute of Applied studies (ELC CODE:) BD-1 Pitam Pura New Delhi :110034 JULY 2011

Transcript of PNB Report

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TRAINING REPORT

ON CURRENT ACCOUNT ANALYSIS IN

PUNJAB NATIONAL BANK

Submitted to

MAHARSHI DAYANAND UNIVERSITY,ROHTAK

In partial fulfillment of the requirement For the award of the degree of

MASTER OF BUSINESS ADMINISTRATION (INDUSTRY INTEGRATED)

(II Semester)

Submitted by

Name: Sukrit Goel Regn. No. Roll No.

Tecnia Institute of Applied studies (ELC CODE:)

BD-1 Pitam Pura New Delhi :110034

JULY 2011

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CERTIFICATE This is to certify that Ms.Sukrit Goel , a student of the

Maharshi Dayanand University, Rohtak, has prepared his Training Report entitled

“Current Account Analysis in Punjab National Bank” at Punjab National Bank ,under

my guidance. He has fulfilled all requirement leading to award of the degree of MBA

(Industry Integrated). This report is the record of bonafide training undertaken by him

and no part of it has been submitted to any other university or Educational Institution for

award of any other degree/diploma/fellowship or similar titles or prizes

I wish him all success in life.

Signature of Faculty Guide NAME : DESIGNATION : OUALIFICATION : Seal of the ELC

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STUDENTS DECLARATION

I hereby declare that the Training Report Conducted at

PUNJAB NATIONAL BANK

Head Office : 7 Bhikaijicama place

New Delhi

Under the Guidance of

Varun Sir

Submitted in Partial fulfillment of the requirements for the

Degree of

MASTER OF BUSINESS ADMINISTRATION

(Industry integrated)

TO

MAHARSHI DAYANAND UNIVERSITY, ROHTAK

Is my original work and the same has not been submitted

For the award of any other Degree/diploma/fellowship

Or other similar titles or prizes.

Place: Student’s Signature

Date: Name: Sukrit Goel

Regn. No.:

Roll No.

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ACKNOWLEDGEMENTS

Note to students:

Acknowledgements to be mentioned to the Head of the Extended Learning Centre,

Faculty guide, NIAM‟s Training Officer in charge. Manager in charge, other staff

member, colleagues and friends for their encouragement, support, guidance, and

assistance for undergoing successful management training and preparing the Training

Report.

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CONTENTS

CONTENTS Page No

Chapter 1 : INTRODUCTION 1

1.1. General Introduction about the sector

1.2. Industry Profile

a) Origin and development of the industry

b) Growth and present status of the industry

c) Future of the industry

Chapter 2 : PROFILE OF THE ORGANISATION

2.1 Origin of the Organisation

2.2 Growth and development of the Organisation

2.3 Present status of the Organisation

2.4 Functional Departments of the Organisation

2.5 Organisation structure and Organisation

2.6 Product and service profile of the Organisation

2.7 Market profile of the Organisation

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Chapter 3 : DISCUSSION ON TRAINING

3.1. Student‟s work profile, tools and techniques used

3.2. Key learning‟s

Chapter 4 : STUDY OF SELECTED RESEARCH PROBLEM

4.1 Statement of research problem

4.2 Statement of research objectives

4.3 Research design and methodoly

Chapter 5 : ANALYSIS

5.1 Analysis of data

5.2 Summary of finding

Chapter6 : SUMMARY AND CONCLUSION

6.1 Summary of learning Experience

6.2 Conclusion and Recommendation

APPENDICES

Questionnaire

Account opening form

Awards

BIBLIGRAPHY

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Chapter 1

INTRODUCTION

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1.1 General Introduction about the sector

Service Sector of Indian Economy contributes to around 55 percent of India's GDP

during 2006-07. This sector plays a leading role in the economy of India, and contributes

to around 68.6 percent of the overall average growth in GDP between 2002-03 and 2006-

07.

There has been a 9.4 percent growth in the Indian economy during 2006-07 as against a

rise of 9 percent in the same during 2006-06. During this growth in Indian economy, the

service sector witnessed a rise of 11 percent in the year 2006-07 against the 9.8 percent

growth in 2005-06. The service sectors of Indian economy that have grown faster than

the economy are as follows:

Information Technology (the most leading service sectors in Indian

economy)

IT-enabled services (ITeS)

Telecommunications

Financial Services

Community Services

Hotels and Restaurants

There has been a 13 percent hike in the service sectors of trade, hotels, transport and

communication in India's economy as compared to the 10.4 percent rise in the previous

year. The financial services that comprise of banks, real estate, insurance, and business

services witnessed a rise of 11.1 percent during 2006-07 against the 10.9 percent growth

in the previous year. Service sectors including community, social, and personal services

experienced a growth of 7.8 percent during 2006-07 as against 7.7 percent growth in the

previous year.

The service sector of India has also witnessed a remarkable rise in the global market apart

from the Indian market. It has experienced a rise of 2.7 percent in 2006 from that of 2

percent in 2004. The broad-based services in the trade sector has undergone a large-scale

rise. A statistics concerning the growth of India's service sectors are listed below:

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The software services in Indian economy increased by 33 percent which

registered a revenue of USD 31.4 billion

Business services grew by 82.4 percent

Engineering services and products exports grew by 23 percent and earned a

revenue of USD 4.9 billion

Services concerning personal, cultural, and recreational had a growth of 96

percent

Financial services had a rise of 88.5 percent

Travel, transport, and insurance grew by 23 percent

The software services in Indian economy along with the export of products is

growing at a massive pace and thereby witnessed an alarming rise of 35.5 percent

and reached a lump some amount of USD 18 billion. The IteS and BPO sectors grew

by 33.5 percent and earned a revenue of USD 8.4 billion. The service sector of

Indian economy has been the most high-powered sector in India's economy. It has

also been focusing in various investments of late. As Indian economy is looking

forward for more liberalization, sectors like banking are on its way to loom large and

occupy a more significant position in India's economy.

1.2 Industry Profile

A. Origin and development of the industry : Without a sound and effective

banking system in India it cannot have a healthy economy. The banking system of India

should not only be hassle free but it should be able to meet new challenges posed by the

technology and any other external and internal factors. For the past three decades India's

banking system has several outstanding achievements to its credit. The most striking is its

extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India.

In fact, Indian banking system has reached even to the remote corners of the country.

This is one of the main reasons of India's growth process. The government's regular

policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14

major private banks of India. Not long ago, an account holder had to wait for hours at the

bank counters for getting a draft or for withdrawing his own money. Today, he has a

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choice. Gone are days when the most efficient bank transferred money from one branch

to other in two days. Now it is simple as instant messaging or dial a pizza. Money has

become the order of the day. The first bank in India, though conservative, was

established in 1786. From 1786 till today, the journey of Indian Banking System can be

segregated into three distinct phases. They are as mentioned below:

Early phase from 1786 to 1969 of Indian Banks

Nationalization of Indian Banks and up to 1991 prior to Indian banking sector

Reforms.

New phase of Indian Banking System with the advent of Indian Financial &

Banking Sector Reforms after 1991.

Phase:I

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan

and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of

Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency

Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was

established which started as private shareholders banks, mostly Europeans shareholders.

In 1865 Allahabad Bank was established and first time exclusively by Indian, Punjab

National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906

and1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian

Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935.

During the first phase the growth was very slow and banks also experienced periodic

failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To

streamline the functioning and activities of commercial banks, the Government of India

came up with The Banking Companies Act, 1949 which was later changed to Banking

Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of

India was vested with extensive powers for the supervision of banking in India as the

Central banking authority.

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During those days public has lesser confidence in the banks. As an aftermath deposit

mobilization was slow. Abreast of it the savings bank facility provided by the Postal

department was comparatively safer. Moreover, funds were largely given to traders.

Phase:II

In 1955, Government nationalized Imperial Bank of India with extensive banking

facilities on a large scale especially in rural and semi-urban areas. It formed State Bank of

India to act as the principal agent of RBI and to handle banking transactions of the Union

and State Governments all over the country.

Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th

July 1969, major process of nationalization was carried out. It was the effort of the then

Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country

were nationalized.

Second phase of nationalization Indian Banking Sector Reform was carried out in 1980

with seven more banks. This step brought 80% of the banking segment in India under

Government ownership.

The following are the steps taken by the Government of India to Regulate Banking

Institutions in the Country:

1949: Enactment of Banking Regulation Act.

1955: Nationalization of State Bank of India.

1959: Nationalization of SBI subsidiaries.

1961: Insurance cover extended to deposits.

1969: Nationalization of 14 major banks.

1971: Creation of credit Guarantee Corporation.

1975: Creation of regional rural banks.

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1980: Nationalization of seven banks with deposits over 200 crores.

After the nationalization of banks, the branches of the public sector bank India raised to

approximately 800% in deposits and advances.

Took a huge jump by 11,000%.

Banking in the sunshine of Government ownership gave the public implicit faith and

immense confidence.

Phase: III

This phase has introduced many more products and facilities in the banking sector in its

reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was

set up by his name, which worked for the liberalization of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being put

to give a satisfactory service to customers. Phone banking and net banking is introduced.

The entire system became more convenient and swift. Time is given more importance

than money.

The financial system of India has shown a great deal of resilience. It is sheltered from any

crisis triggered by any external macroeconomics shock as other East Asian Countries

suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high,

the capital account is not yet fully convertible, and banks and their customers have

limited foreign exchange exposure.

B. Growth and present status of the industry

In the early 1990s, the then Narsima Roa government embarked on a policy of

Liberalization , licensing a small number of private banks. These came to be known as

New Generation tech-savvy banks, and included Global Trust Bank (the first of such new

generation banks to be set up), which later amalgamated with Oriental Bank of

Commerce, AXIS bank(earlier as UTI bank),ICICI bank and HDFC bank. This move,

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along with the rapid growth in the economy of India, revitalized the banking sector in

India, which has seen rapid growth with strong contribution from all the three sectors of

banks, namely, government banks, private banks and foreign banks.

The next stage for the Indian banking has been setup with the proposed relaxation in the

norms for Foreign Direct Investment, where all Foreign Investors in banks may be given

voting rights which could exceed the present cap of 10%,at present it has gone up to 49%

with some restrictions.

The new policy shook the Banking sector in India completely. Bankers, till this time,

were used to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4) of functioning.

The new wave ushered in a modern outlook and tech-savvy methods of working for

traditional banks. All this led to the retail boom in India. People not just demanded more

from their banks but also received more.

Currently (2007), banking in India is generally fairly mature in terms of supply, product

range and reach-even though reach in rural India still remains a challenge for the private

sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks

are considered to have clean, strong and transparent balance sheets relative to other banks

in comparable economies in its region. The Reserve Bank of India is an autonomous

body, with minimal pressure from the government. The stated policy of the Bank on the

Indian Rupee is to manage volatility but without any fixed exchange rate-and this has

mostly been true.

With the growth in the Indian economy expected to be strong for quite some time-

especially in its services sector-the demand for banking services, especially retail banking

, mortgages and investment services are expected to be strong. One may also expect

M&As, takeovers, and asset sales.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake

in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor

has been allowed to hold more than 5% in a private sector bank since the RBI announced

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norms in 2005 that any stake exceeding 5% in the private sector banks would need to be

vetted by them.

In recent years critics have charged that the non-government owned banks are too

aggressive in their loan recovery efforts in connection with housing, vehicle and personal

loans. There are press reports that the banks' loan recovery efforts have driven defaulting

borrowers to suicide.

Banks with branches in India as on date

ABN AMARO Bank N.V.

Abu Dhabi Commercial Bank Ltd

American express Bank

Antwerp Diamond Bank

Arab Bangladesh Bank

Bank International Indonesia

Bank of America

Bank of Bahrain & Kuwait

Bank of ceylon

Bank of Nova Soctia

Barclays Bank

BNP Paribas

China Trust Commercial Bank

Citibank

DBS Bank

Dectuche Bank

HSBC (Hongkong & Shanghai Banking Corporation)

JP Morgan Chase Bank

Krung Thai Bank

Marsheq Bank

Oman International Bank

Shinhan Bank

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Sonali Bank

Standard Chartered Bank

State Bank of Mauritius

Banks with Representative Offices in India: SAmerican Banks

The Bank of New York

Wachovia Bank

Australian Banks

Commonwealth Bank

National Bank Australia

Westpac Banking Corporation

Austrian Banks

Raiffeisen Zentral Bank Osterreich

Belgian Banks

Fortis Bank.

K.B.C. Bank N.V.

Canadian Banks

Royal bank of Canada

UAE Banks

Emirates Bank International

French Banks

Credit Industriel et Commercial

Natixis

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German Banks

Bayerische Hypo und Vereinsbank

Commerzbank

Dresdner Bank

DZ Bank AG Deutsche Zentral – Genossenschafts Bank

HSH Nordbank

Landesbank Baden – Wurttemberg

Irish Banks

DEPFA Bank

Italian Banks

Banc Intesa Banca Commerciale Italiana

Banca di Roma

Banca Populare Di Verona E Novara

Banca Popolare di Vicenza

BPU Banca –Banche Popolari Unite

Monte Dei Paschi Di Sienna

Sanpaolo IMI Bank

Uni Credito Italiano

Nepalese Banks

Everest Bank

Portuguese Banks

Caixa Geral de Depositos

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Russian Banks

Vnesheconombank

VTB India

Promsvyazbank

South African Banks

First Rand Bank

South Korean Banks

Wori Bank

Spanish Banks

Banco de Sabadell

Banco Bilbao Vizcaya Argentaria

SriLankan Banks

Hatton National Bank

Swiss Banks

UBS

Zurcher Kantonalbank

Saqib Saeed Qureshi

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C. Future of Banking Sector

Financial sector reforms were initiated as part of overall economic reforms in the country

and wide ranging reforms covering industry, trade, taxation, external sector, banking and

financial markets have been carried out since mid 1991. A decade of economic and

financial sector reforms has strengthened the fundamentals of the Indian economy and

transformed the operating environment for banks and financial institutions in the country.

The sustained and gradual pace of reforms has helped avoid any crisis and has actually

fuelled growth. As pointed out in the RBI Annual Report 2001-02, GDP growth in the 10

years after reforms i.e. 1992-93 to 2001-02 averaged 6.0% against 5.8% recorded during

1980-81 to 1989-90 in the pre-reform period. The most significant achievement of the

financial sector reforms has been the marked improvement in the financial health of

commercial banks in terms of capital adequacy, profitability and asset quality as also

greater attention to risk management. Further, deregulation has opened up new

opportunities for banks to increase revenues by diversifying into investment banking,

insurance, credit cards, depository services, mortgage financing, securitisation, etc. At the

same time, liberalisation has brought greater competition among banks,both domestic and

foreign, as well as competition from mutual funds, NBFCs, post office, etc. Post-WTO,

competition will only get intensified, as large global players emerge on the scene.

Increasing competition is squeezing profitability and forcing banks to work efficiently on

shrinking spreads. A positive fallout of competition is the greater choice available to

consumers ,and the increased level of sophistication and technology in banks. As banks

benchmark themselves against global standards, there has been a marked increase in

disclosures and transparency in bank balance sheets as also greater focus on corporate

governance.

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Chapter 2

PROFILE OF THE ORGANISATION

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2.1 ORIGIN OF THE PNB

Punjab National Bank (PNB) was established in 1895 at Lahore PNB has the distinction

of being the first Indian bank to have been started solely with in capital. In 1969, Punjab

National Bank was nationalized along with 13 other banks.

1895: PNB established in Lahore.

1904: PNB established branches in Karachi and Peshawar.

1939: PNB acquired Bhagwandas Bank

1947: Partition of India and Pakistan at Independence. PNB lost its premises in

Lahore, but continued to operate in Pakistan.

1961: PNB acquired Universal Bank of India.

1963: The Government of Burma nationalized PNB‟s branch in Rangoon

(Yangon).

September 1965: After the Indo-Pak war the government of Pakistan seized all the

office in Pakistan of Indian banks, including PNB‟s head office, which may have

moved to Karachi. PNB also had one or more branches in East Pakistan

(Bangladesh).

1960: PNB amalgamated Indo Commercial Bank (est. 1933) in a rescue.

1969: The Government of India (GOI) nationalized PNB and 13 other top banks.

1976 or 1978: PNB opened a branch in London.

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1986: The Reserve Bank of India required PNB to transfer its London branch to

State Bank of India after the branch was involved in a fraud scandal.

1988: PNB acquired Hindustan Commercial Bank in a rescue.

1993: PNB acquired New Bank of India which the nationalized in 1980.

1998: PNB set up a representative office in Almaty, Kazakhstan.

2003: PNB took over Nedungadi Bank, author of Kundalatha, one of the earliest

novels in Malayalam, had established the bank in 1899. It was incorporated in

1913, and in 1965 had acquired selected assets and deposits of the Combatore

National Bank. At the time of the merger with PNB, Nedungadi Bank‟s shares

had zero value, with the result that its shareholders received no payment for their

shares. Some of PNBs esteemed customers MAHATMA GANDHI, PANDIT

JAWAHARLAL NEHRU, LAL BAHADUR SHASHTRI.

AT PRESENT

One of the top three banks in India.

Ranked among world‟s top 400 banks by “the banker ‟‟ London.

Consistent profit record for the last 114 years of service.

THEIR MISSION

Customer service and product innovation tuned to diverse needs of individuals

and corporate clientele.

Continuous technology up gradation while maintaining human values.

Progressive globalization and achieving international standards.

Efficiency and effectiveness built on ethical practices.

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CORE VALUES

o Customer satisfaction through

Providing quality service efficiently and effectively

Periodic customer service audit

o Success through Teamwork, Integrity and People.

2.2 Growth and Development

With over 38 million satisfied customers and 4668 offices, PNB has continued to retain

its leadership position among the nationalized banks. The bank enjoys strong

fundamentals, large franchise value and good brand image. Besides being ranked as one

of India's top service brands, PNB has remained fully committed to its guiding principles

of sound and prudent banking. Apart from offering banking products, the bank has also

entered the credit card & debit card business; bullion business; life and non-life insurance

business; Gold coins & asset management business, etc.

Since its humble beginning in 1895 with the distinction of being the first Indian bank to

have been started with Indian capital, PNB has achieved significant growth in business

which at the end of March 2009 amounted to Rs 3,64,463 crore. Today, with assets of

more than Rs 2,46,900 crore, PNB is ranked as the 3rd largest bank in the country (after

SBI and ICICI Bank) and has the 2nd largest network of branches (4668 including 238

extension counters and 3 overseas offices).During the FY 2008-09, with 39% share of

low cost deposits, the bank achieved a net profit of Rs 3,091 crore, maintaining its

number ONE position amongst nationalized banks. Bank has a strong capital base with

capital adequacy ratio as per Basel II at 14.03% with Tier I and Tier II capital ratio at

8.98% and 5.05% respectively as on March‟09. As on March‟09, the Bank has the Gross

and Net NPA ratio of only 1.77% and 0.17% respectively. During the FY 2008-09, its‟

ratio of priority sector credit to adjusted net bank credit at 41.53% & agriculture credit to

adjusted net bank credit at 19.72% was also higher than the respective national goals of

40% & 18%.

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Balance Sheet ------------------- in Rs. Cr. -------------------

Mar '07 Mar '08 Mar '09 Mar '10 Mar '11

12 mths 12 mths 12 mths 12 mths 12 mths

Capital and Liabilities:

Total Share

Capital 315.30 315.30 315.30 315.30 316.81

Equity Share

Capital 315.30 315.30 315.30 315.30 316.81

Share

Application

Money

0.00 0.00 0.00 0.00 0.00

Preference

Share

Capital

0.00 0.00 0.00 0.00 0.00

Reserves 9,826.31 10,467.35 12,824.59 15,915.63 19,720.99

Revaluation

Reserves 293.85 1,535.70 1,513.74 1,491.99 1,470.76

Net Worth 10,435.46 12,318.35 14,653.63 17,722.92 21,508.56

Deposits 139,859.67 166,457.23 209,760.50 249,329.80 312,898.73

Borrowings 1,948.86 5,446.56 4,374.36 19,262.37 31,589.69

Total Debt 141,808.53 171,903.79 214,134.86 268,592.17 344,488.42

Other

Liabilities &

Provisions

10,178.51 14,798.23 18,130.13 10,317.69 12,328.27

Total 162,422.50 199,020.37 246,918.62 296,632.78 378,325.25

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Liabilities

Mar '07 Mar '08 Mar '09 Mar '10 Mar '11

12 mths 12 mths 12 mths 12 mths 12 mths

Assets

Cash &

Balances

with RBI

12,372.03 15,258.15 17,058.25 18,327.58 23,776.90

Balance with

Banks,

Money at

Call

3,273.49 3,572.57 4,354.89 5,145.99 5,914.32

Advances 96,596.52 119,501.57 154,702.99 186,601.21 242,106.67

Investments 45,189.84 53,991.71 63,385.18 77,724.47 95,162.35

Gross Block 2,247.74 3,699.64 3,930.36 4,215.21 4,981.60

Accumulated

Depreciation 1,237.92 1,384.12 1,533.25 1,701.74 1,876.01

Net Block 1,009.82 2,315.52 2,397.11 2,513.47 3,105.59

Capital Work

In Progress 0.00 0.00 0.00 0.00 0.00

Other Assets 3,980.80 4,380.84 5,020.20 6,320.07 8,259.42

Total Assets 162,422.50 199,020.36 246,918.62 296,632.79 378,325.25

Contingent

Liabilities 52,884.89 80,606.88 79,270.65 68,124.47 101,465.73

Bills for

collection 21,815.59 23,448.99 31,941.43 33,215.78 37,449.53

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Book Value

(Rs) 321.65 341.98 416.74 514.77 632.48

Cash Flow ------------------- in Rs. Cr. -------------------

Mar '07 Mar '08 Mar '09 Mar '10 Mar '11

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit Before Tax 2169.13 3295.91 4766.92 5904.78 6563.72

Net Cash From

Operating Activities

-

10144.34 1756.13 2105.16 1835.99 8045.67

Net Cash (used

in)/from

Investing Activities

-159.41 -444.46 -395.84 -409.41 -1083.66

Net Cash (used

in)/from Financing

Activities

1157.57 1873.54 873.11 633.84 -744.36

Net

(decrease)/increase

In Cash and Cash

Equivalents

-9146.17 3185.21 2582.42 2060.42 6217.65

Opening Cash & Cash

Equivalents 24791.69 15645.52 18830.72 21413.14 23473.56

Closing Cash & Cash

Equivalents 15645.52 18830.72 21413.14 23473.56 29691.21

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2.3 Present Status of the Organization

PNB has always looked at technology as a key facilitator to provide better customer

service and ensured that its „IT strategy‟ follows the „Business strategy‟ so as to arrive at

“Best Fit”. The bank has made rapid strides in this direction. Along with the achievement

of 100% branch computerization, one of the major achievements of the Bank is covering

all the branches of the Bank under Core Banking Solution (CBS), thus covering 100% of

it‟s business and providing „Anytime Anywhere‟ banking facility to all customers

including customers of more than 2000 rural branches. The bank has also been offering

Internet banking services to the customers of CBS branches like booking of tickets,

payment of bills of utilities, purchase of airline tickets etc. Towards developing a cost

effective alternative channels of delivery, the bank with more than 2150 ATMs has the

largest ATM network amongst Nationalised Banks.

With the help of advanced technology, the Bank has been a frontrunner in the industry so

far as the initiatives for Financial Inclusion is concerned. With it‟s policy of inclusive

growth in the Indo-Gangetic belt, the Bank‟s mission is “Banking for Unbanked”. The

Bank has launched a drive for biometric smart card based technology enabled Financial

Inclusion with the help of Business Correspondents/Business Facilitators (BC/BF) so as

to reach out to the last mile customer. The BC/BF will address the outreach issue while

technology will provide cost effective and transparent services. The Bank has started

several innovative initiatives for marginal groups like rickshaw pullers, vegetable

vendors, diary farmers, construction workers, etc.

The Bank has already achieved 100% financial inclusion in 21,408 villages.

Backed by strong domestic performance, the bank is planning to realize its global

aspirations. In order to increase its international presence, the Bank continues its selective

foray in international markets with presence in Hongkong, Dubai, Kazakhstan, UK,

Shanghai, Singapore, Kabul and Norway. A second branch in Hongkong at Kowloon was

opened in the first week of April‟09. Bank is also in the process of establishing its

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presence in China, Bhutan, DIFC Dubai, Canada and Singapore. The bank also has a joint

venture with Everest Bank Ltd. (EBL), Nepal.

Future Expansion of the Organization

Under the long term vision, Bank proposes to start its operation in Fiji Island, Australia

and Indonesia. Bank continues with its goal to become a household brand with global

expertise. Amongst Top 1000 Banks in the World, „The Banker‟ listed PNB at 250th

place. Further, PNB is at the 1166th position among 48 Indian firms making it to a list of

the world‟s biggest companies compiled by the US magazine „Forbes‟.

2.4 – Functional Departments of the Organisation

Ex ecu t ive ca rds o f t he o rgan iza t ion . They a re Ex ecut ive

Director, General Manager (GM), Depu t y G enera l Managers (DGM), assistant

General Managers(AGM), Chief Managers(CM), Managers and other officers are in the

hierarchy at the head o f f i ce l eve l funct ioning in va r ious Depar tment s .

The Zona l Manager and reg iona l Managers head the Zona l Of f i ces

and Regional Officers respectively who are assisted by other down in the hierarchy.

The Branch is headed by AGM\CM\ Senior Managers \Managers depending

upon the s iz e o f the Branch activities and rendering of satisfactory customer

service .The bank has a ve r y good s ys t em o f del ega t ing power t o t he

d i f fe rent func t ionar i es i n t he h i e ra rch y to fac i l i t a t e speedy dec i s ion -

mak ing p rocess even up to the b ranch Leve l .

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2.5 -ORGANISATION STRUCTURE AND CHART

Bank has its corporate office at New Delhi and 25 zonal offices which in turn supervise

48 regional offices under which the branches function. The delegation of powers is

decentralized up to the branch level to facilitate quick decision-making.

Organizational Structure

Head Office

Zonal Offices (25)

Regional Offices (65)

Branches (5017)

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In the organization where I worked ,its organizational chart as follows:

Senior Manager

Deputy manager

Officer

ROUTINE CCO CTO

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2.6 -Product and Service profile of the Organisation

Saving Account

PNB Prudent Sweep

Total Freedom Salary Account

PNB Vidyarthi Salary Account

PNB Mitra SF Account

Current Accounts

Smart Romer

PNB Vaibhav

PNB Gaurav

Fixed Deposit Accounts

Spectrum fixed deposit scheme

Anupam account

Multi benefit deposit scheme

Special fixed deposit scheme

Recurring deposit scheme

PNB swecha jama yojna/flexi rd

Credit schemes

Housing loan

Car finanace

Personal loan

Professional loan

Educational loan scheme

Loan against mortgage of property

PNB financial basket scheme

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Personal loan scheme for pensioners

Privilege card scheme

Other credit scheme

Social Banking

Farmers

Krishi card

Agriculture credit scheme

PNB farmers welfare trust

Women

Scheme for house wife and other women

Mahila udhyam nidhi scheme

Current Account :The product is aimed at offering Current Account Customers

convenient opportunity to earn extra-returns on surplus funds lying in the accounts which

may not normally be utilized in the near future or are likely to remain un-utilized.

The automated nature of the facility for 'Sweep In or Sweep Out' of more than a lac of

rupees, and creating fixed deposits for desired period, would save lot of operational

hassles and create Customer Value.

Roaming Features: The Customers would be able to operate their 'Current Comfort' at

all other CBS branches of our Bank. It will facilitate transfer of funds as well as much

faster cheque collection services for the customers; simultaneously customers will be able

to withdraw cash from our CBS branches.

Sweep in and Sweep out Features: The Customer shall be able to profitably deploy his

funds which were earlier not attracting any interest. Funds (above Rs. One Lac) lying in

Current Accounts and their ready availability when required for payment/clearance of

cheques. The bank would provide the facility of automatic transfer of balance from

Current Accounts having a balance of over Rs.1,00,000/- (Rupees one lac only) in

multiples of Rs.10,000/- (Rupees Ten Thousand Only) to Fixed Deposit Accounts. Sweep

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In Funds would be accepted for a minimum maturity period of 15 days and Maximum

maturity period of 45 days. It will be optional for the customers to indicate desired

periodicity in multiples of 15 days. The customer would get the interest on such deposit

at the term deposit rate applicable for the period indicated by him/her.

Additional Features

(subject to maintenance of stipulated 'minimum balance' in the account throughout during

previous quarter i.e. clear balance on the closing of everyday should have been

Rs.25,000/- or above) :

Free ATM Card;

Free Debit Card (slated to be introduced by the Bank shortly-publicity on this

aspect will begin only after launch)

Free remittance of funds up to an extant of Rs. 25000/- per month at any of our

branches having connectivity under CBS.

One Cheque book of 50 leaves free of cost per quarter to be issued (inclusive of

item no. xii)

Free e-mails for statement of account on monthly basis

Same day Credit for outstation cheques drawn on other branches of our Bank

under CBS Connectivity

Free collection of one outstation cheque (issued in favour of customer) per quarter

upto Rs. 10000/-(however, out of pocket expenses shall be recovered)

Immediate credit of outstation cheques upto 15,000/-

25% concession on Annual Custody Charges for Demat Services

25% concession on service charges for providing EFT Services;

Transaction i.e. T + 3 Days' Credit for outstation cheques drawn on other bank

branches at locations where we have at least one PNB branch under CBS

connectivity.

If possible, Free Special Cheque Book (under relevant MICR Code) shall also be issued

to customers enabling them to make payment by cheque to outstation parties at CBS

centers

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PNB VAIBHAV ACCOUNT

Features

Quarterly average balance required Rs.5,00,000/- and above

Initial Deposit Amount required for opening of the account. Rs.5,000/-

Non-maintenance charges Rs.3000/- Qty.

Free (of transaction charges)

Transactions allowed

Unlimited

Transaction charged/L.F. charges Free

Inter sol transfer charges –

Local non-base branches

Free

Inter sol transfer charges-

Outstation non-base branches

Free

Outstation/local-cheques/ Bills, etc. collection charges 50% discount on normal

charges

Free Statement on request. Upto 4 in a month

Statement of Account(e-mail on request) Free on monthly basis

Remittance charges/Drafts issuing, etc. 50% discount on normal

charges.

Standing Instructions Regn. Free

De-mat A/c Charges (except charges to be paid by Ban to

NSDL)

First Year Free

Rebate on Locker Rent (of any size) 50% rebate in locker rent of

one locker

Internet Banking Services Free

Debit-cum-ATM Card Free

RTGS Services 50% concessions on normal

charges.

Personalised Multi-City Cheque Book UNLIMITED

Stop Payment Instruction charges Free

Interest/Balance certificate Free

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Cash Withdrawals/Deposits charges – at Local Non-Base

Branches, free upto:

Rs.5 lac per day, thereafter

50% discount on normal

charges.

Cash Withdrawals/Deposits charges – at outstation Non-

Base Branches, free upto

Rs.1 lac per day, thereafter

50% discount on normal

charges

Charges on payment of outstation Multicity Cheques, Free

upto

Rs.1 lac per day, thereafter

50% discount on normal

charges.

PNB GAURAV– CURRENT ACCOUNT

Features

Quarterly average balance required Rs.1,00,000/- and above

Initial Deposit Amount required for opening of the

account.

Rs.5,000/-

Non-maintenance charges Rs.1200/- Qty.

Free (of transaction charges)

Transactions allowed

200 in a quarter

Transaction charged/L.F. charges Rs.2/- per transaction beyond 200

transaction.

Inter sol transfer charges –

Local non-base branches

Free

Inter sol transfer charges-

Outstation non-base branches

Upto Rs.50,000/- per day – no

charges, thereafter, 50% discount

on normal charges.

Outstation/local-cheques/ Bills, etc. collection

charges

25% discount on normal charges

Free Statement on request. Upto 2 in a month

Statement of Account(e-mail on request) Free on Quarterly basis

Remittance charges/Drafts issuing, etc. 20% discount on normal charges.

Standing Instructions Regn. 50% concessions on normal

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charges.

De-mat A/c Charges (except charges to be paid by

Ban to NSDL)

First Year Free

Rebate on Locker Rent (of any size) 25% rebate in locker rent of one

locker

Internet Banking Services Free

Debit-cum-ATM Card Free

RTGS Services 20% concessions on normal

charges.

Stop Payment Instruction charges Free

Interest/Balance certificate Free

Cash Withdrawals/Deposits charges – at

outstation Non-Base Branches, free upto

Rs.50,000/- per day, thereafter 25%

discount on normal charges

Charges on payment of outstation Multicity

Cheques, Free upto

Rs.50,000/-per day, thereafter 25%

discount on normal charges.

2.7- Market Profile of the PNB

With a slowdown and deteriorating asset quality, banks have been treading cautiously by

adhering to prudent lending practices and enhancing their risk management systems.

Punjab National Bank (PNB) has taken advantage of the situation and is increasing its

market share with a focus on maintaining asset quality.

With one of the lowest non-performing assets‟ (NPAs) in the sector, PNB is well

positioned to capitalise on its dominant presence in the growing Indo-gangetic region and

maintain its superior margins. Focus on technology and a wide branch network would

ensure efficiency in operations and robust business volumes.

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Strong advances

The second largest public sector bank (PSB), PNB has seen its advances (loan portfolio)

grow by an average 25 per cent in the last four years. Strong demand and the bank‟s

willingness to lend has enabled advances to grow at 28.5 per cent in H1 FY09, and at a

scorching 40 per cent in Q3 FY09.

This along with higher interest rates has enabled interest income to grow by around 45

per cent. However, the management has maintained that the advances growth in Q3 was

extraordinary, which would taper to 30 per cent in FY09 and further to around 20-22 per

cent in FY10, which is also healthy.

To its credit, PNB has been prudent in terms of lending to certain sectors. It has slowed

lending to retail (grew by only 15 per cent in Q3), which has led to its share in the overall

loan book fall from 23 per cent in FY08 to 19 per cent now. However, going forward,

PNB would be focusing on educational and home loans (less than Rs 30 lakh) in the retail

space, agriculture, corporate and SME among others.

Matching deposits

Deposits have grown at a healthy pace of 17 per cent (average) during FY05-FY08. With

increasing risk aversion and the tide turning in favour of safer havens, deposit growth of

PSB (29 per cent) have outpaced those of private banks (16 per cent) in Q3. For PNB, its

deposit base, too, grew fast beating past averages (up 24 per cent in H1 FY09 and 29 per

cent in Q3).

The higher interest rate scenario also meant that depositors preferred term deposits over

low-yielding deposits like savings account (CASA; current account and savings account).

Not surprisingly, term deposits have grown impressively at 43 per cent outpacing lower-

cost deposits (grew by 12 per cent).

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ON A GROWTH TRAJECTORY

in Rs crore FY08 FY09E FY10E

Net Interest income 5,534.0 7,037.0 8,046.0

Non-interest income 1,998.0 2,678.0 2,779.0

Operating profit 4,006.0 5,600.0 6,142.0

Net profit 2,049.0 2,822.0 3,139.0

EPS (Rs) 65.0 89.5 99.6

P/E (x) 6.1 4.4 4.0

P/BV (x) 1.0 0.9 0.8

E: estimates

This trend has seen the share of PNB‟s CASA deposits gradually falling to 37.4 per cent

in Q3 from 43 per cent in Q3 FY08. However, at 37-38 per cent levels, it is the highest

among PSBs. Overall, the management expects deposit growth of 25-26 per cent in

FY09.

Higher margins

Even as the share of low-cost deposits has fallen, the overall net interest margins (NIM)

of PNB have been on the rise in the last few quarters (see Key Ratios). While the cut in

CRR and SLR ratios have provided some cushion, advances to high-yield customers (and

better pricing power) are responsible for the robust margins.

The bank‟s strategy to mobilise bulk deposits (around 36 per cent of term deposits are

bulk deposits), allows PNB to re-price these deposits much faster, thus would cushion

margins in a declining interest rate scenario. Recent cuts in term deposit rates are a

positive, the effect of which would be felt with a lag. Overall, the bank expects to

maintain NIMs of around 3.5 per cent going ahead.

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Technology edge

PNB has a wide branch network of about 4,600 branches (second largest in the country),

which has enabled it to maintain higher CASA deposits. Importantly, all its branches and

extension counters are fully automated and networked. The technology processes are in

place to take care of 50,000 villages, 100,000 terminals and 150 million customers, and

future demand.

The growing usage of technology has improved productivity over the years, demonstrated

in the improvement in cost-to-income ratio from 58 per cent in FY05 to 38 per cent in Q3

FY09.

The technology usage not only reduces the operating costs, it also helps strengthen

internal risk management practices. For example, information pertaining to any

weakening of a loan account (more than Rs 50 lakh) is promptly passed on to higher

levels and action is taken to recover the money.

This transparency at every level is enabled by the centralised technology platform, thus

ensuring a tab on NPAs. Strong risk management systems and prudent provisioning

norms (83 per cent coverage) has helped PNB keep NPAs at very low levels (0.4 per cent

in Q3).

Investment rationale

Apart from robust growth in fund-based income, the bank‟s other income (which includes

more stable fee-based income) has grown at a healthy pace. In Q3 it almost doubled on

the back of a 155 per cent rise in treasury income, which is unlikely to be sustained in Q4

as bond yields are up. Nevertheless, expect other income growth to be stable, driven by

strong growth in fee-based income.

While an extensive branch network should continue to aid PNB to deliver robust business

growth, the relatively high CASA ratio should ensure better NIMs, compared to its peers.

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The technology initiatives along with prudent lending practices would also help towards

keeping costs under check and maintain asset quality.

While PNB also holds 74 per cent in PNB Gilts and 30 per cent in Principal PNB Mutual

Fund, any progress over the IPO of UTI AMC (PNB holds 25 per cent stake) could rub

off positively on the stock. At Rs 399, the stock is available at a P/BV of 0.8 and can

deliver 18-21 per cent in a year‟s time.

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CHAPTER3:

DISCUSSIONS ON TRAINING

.

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3.1 Student’s Work profile, Tools and Techniques Used

To have a detail study on banking system in India.

To have a detail study on different product and services offered by PNB.

To know detail study of different scheme under current account.

Compare current account of PNB with different banks like AXIS bank, SBI bank

and other private bank..

TOOLS AND TECHIQUES

Sample Survey

Questionnaire

3.2 Key Leanings

Punjab National Bank bas a great learning experience for me and in the due course of my

project I found out that the consumers go for the Punjab National Bank for a status

symbol and not merely for baking process. It‟s a prestigious issue for the customers that

they hold Punjab National Bank account and so the bank should try and meet it‟s

commitment and keep the faith of the customers.

Punjab National Bank should maintain good relationship with it‟s customers like

providing reliable “After Sale” services so that the customers can build their faith in the

bank and bring in more references to join the Punjab National Bank.

Today facilities like ATM, internet banking, phone banking, etc. are really important

and necessary for the customers.

PNB hold a good proportion of consumers in the market.

22% of the samples hold their account in the PNB.

People prefer banking services in deciding of the bank.

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Chapter 4

STUDY OF SELECTED RESEARCH PROBLEM

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4.1 STATEMENT OF RESEARCH PROBLEM

To weed out unviable projects from obtaining bank finance to provide objective

feedback to the competent authority for taking a Considered Decision.

To know the type of Current account preferred by people.

To know about the experience of customers by the current bankers

To know all the factors influencing choice of banking

The Appraisal also signifies the present state of affairs of industry, demand &

supply, marketing scenario, Regulatory requirements as well as national &

International state of affairs of that particular product/ industry.

The Appraisal also signifies a proper format in which any credit & project

appraisal to be placed before the final decision takers.

MANAGERIAL USEFULNESS OF THE STUDY

To study Impact on increase in level of savings and income distribution in society

and standard of living.

The study provides a complete knowledge of various fundamental concept related

to services provided by the bank.

The study helps in finding the weaknesses, if any in the services and the steps

taken to avoid them.

The suggestions to the Branch Managers will help management to make changes

in the desired field.

4.2 STATEMENT OF RESEARCH OBJECTIVE

This project is a compilation of the work that is taken up by a financial Institution while

financing an industrial project. The basic theme of the study is:

To check the awareness about ATM AND Internet banking facility.

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To know the problem which people are facing from these services.

To know about the experience of customers by the current bankers.

To know all the factors influencing choice of banking.

Familiarization with the services provided by PNB.

To study the features of modern banking which will give a good idea of various

products and services offered by today‟s bank and understand the latest banking

concepts.

SCOPE

Scope of the study is to collect information regarding the account opening and

ATM facility provided by the bank

To analyze the level of satisfaction of the customer in respect to the services.

To know how many people prefer banking with the bank.

4.3 RESEARCH DESIGN AND METHODOLOGY

The study adopted in the project is exploratory that makes use of sample amount of data

to arrive at the conclusions. It does so by paying equal attention to both quantitative as

well as qualitative data. This data is of extreme help as almost all the steps of the study

are dependent on the reliability & accuracy of this data. Care has been taken to; ensure

that these figures are foolproof.

Data used to analysis the services in PNB was of primary and secondary .The primary

data has been collected through questionnaires. The secondary source included brochures,

annual reports, magazines, employee‟s handbook, magazines and journals.

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DATA SOURCES

Primary Data:

It is a fresh data which is collected by the researcher himself. The primary data that I

collected were the first hand information, which I received through personal interviews

with the consumers and through questionnaires. This data gave the most vital information

for making my analysis of the prevailing banking behavior of the consumers

Secondary Data:

It is data which is already present in the records and is collected by someone else.

Secondary data involved in my research were the information that I collected through the

Punjab National Bank‟s Internet service and through the various brochures and pamphlets

of the bank.

Questionnaire Design

Questionnaires are one of the most important and commonly used research instruments to

collect primary data.

It is self-administered process whereby the respondent himself reads the questions and

records his answers without the assistance of an interviewer

Multiple choice questions were asked from the interviewer as it consumes less time and

gives us the exact answers. The main objective of choosing such question was to extract

the clear picture from the customers like what they actually expect from a good banking

system.

TOOLS:-

Pie chart

Bar diagram

Text and statements

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SAMPLE DESIGN

Sample element: The members selected from the population for doing the survey

constitute the sampling element. A sample of 50 customers was taken as a sample

element.

Extent: The survey was conducted in the Delhi region only.

Time frame: Total time duration for the survey took almost two months.

Sample size: 50 was the sample size of the survey.

LIMITATIONS

As said a basic research was conducted at the bank to assess how far that customers are

satisfied with products and services of PUNJAB NATIONAL BANK, Delhi. During the

course of the study the following limitation were observed:

The method will be unsuitable if the number of people to be surveyed is very less as it

will be difficult to draw logical conclusions regarding the satisfaction level of

customers.

Interpretation of data may vary from individual depending on the individual

understanding of the product features and services of the bank.

The method lacks flexibility. Incase of inadequate or incomplete information the

results may deviate.

Since all the financial products and services are not widely used by all the customers

it is difficult to draw realistic conclusions based on the survey.

It is very difficult to check the accuracy of the information provided.

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Chapter-5

ANALYSIS

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My analysis is based primarily on the information collected through 50 questionnaires. A

copy of the questionnaires that was used has been attached in the appendix.

5.1- Analysis of the Data :

A survey On Customer Satisfaction In Banking Service

Q. Do you think that your bank caters all your banking needs?

(a) Yes (b) No

More than 75% Of the customer are satisfy with the services

figure 1

Needs

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Q. What kind of account do you maintain in this bank?

(a)Current (b)Savings (c)Loan a/c (d)Demat (e)Credit card

50% of the Customer are having saving account

30% of the Customer are having current account

10% of the Customer are having Loan account

5% of the Customer are having Demat account

5% of the Customer are having Credit Card

Figure 2

Accounts

Saving account

current account

loan account

demat account

credit card

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Q. Which of the following facilities is given more importance in your bank

(a)Loan facilities (b)O/D facilities (c)ATM facilities

figure3

Q. Does your bank have core banking facility for the customers

(a) Yes (b) No

More than 90% of the customer are saying that the current bank is providing the

core banking. By core banking the can make the banking easy.

Q. Do they charge unnecessarily for not maintain minimum balance in

your account

(a) Yes (b) No

More than 75% of the customer are saying that the bank charge unnecessarily for

the maintenance of the minimum balance

Q. Do you think your bank offers competitive interest rate

(a) Yes (b) No

facilities

loan

O/D

ATM

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In the current time the PNB is providing highest rates on interest under several

scheme

Q. Do you use the service of alternative bank

(a) Yes (b) No

More than 30% of the customer are using the services of the alternative bank.

Q. What do you feel about overall service quality of your

bank.

(a)Excellent (b)very good (c)good (d)average (e)poor

figure4

Q. Would you recommend this bank to your friends, relatives,

associates

(a) Yes (b) No

Yes most of the people will recommend this bank to their friends, relatives,

associates

services

excellent

very good

good

average

poor

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Q. When do you think of your bank what comes first in your mind

(a)Personalised service (b)Wide branch network (c)Customer

service (d)computerised banking (e)Core banking

figure 5

service

Personalised

wide branch

customer service

computerised banking

core banking

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Q. Facilities provided on Current Account ?

Through this survey it has been analyses that the bank is provided different services and

the customer needs all of the services at different stages for example this chart shows that

Interest ,Cheque book, Internet banking and RTGS/NEFT are very important and all

other are average and not important.

SERVICES NOT IMPORTANT AVERAGE VERY IMPORTANT

Interest Facility Y

Free e-mail statement Y

Discount on Service

charges

Y

Standing instruction Y

Outstation cheque

collection

Y

50 leaves cheque

book free per quarter

Y

Nomination facility Y

Free internet banking Y

Free debit card Y

RTGS/NEFT

available

Y

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5.2 – Summary of Finding

Punjab National Bank gave me a great opportunity to explore the banking sector in the

economy. It really does have a lot of positive aspect, which are so lucrative that anybody

would be attracted towards having a deposit with the Bank.

Still I feel that are some areas where Punjab National Bank have to improve upon to have

the complete faith of the consumers. These areas are highlighted as:

Punjab National Bank seems to have been concentrating more on numbers (the

numbers of deposits) specially saving / current account that they can produce and in

the process the “After Sale” services has lagged behind.

The sales term has gone far ahead of the customers care unit and so Punjab National

Bank have to do something to improve the services that they provide to the customer.

The customer satisfaction is not there. Once an account is opened, many a time they

are considered as permanent and the customer services is relaxed. The bank should

remember that a single satisfied customer could be a great help in bringing in new

accounts for the bank by giving reference.

There are so many PNB‟s ATM‟s. A customer feels proud in visiting their own banks

ATM. It‟s all right that PNB account holder can access their account through other

banks ATM as well, but that appeal of belongingness does not exist when a customer

goes into other banks ATM. The customer feels proud of Punjab National Bank

account, its hottest brand name and they want other people to see them enter into a

Punjab National Bank ATM to access their account and so the management should

try and increase the number of PNB‟s own ATM centers, especially in and around

cinema halls like PVR, shopping complexes etc.

Fixed deposit rates have goes down very much; PNB should create some mechanism

to bring about some kind of stability in the interest rates.

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Chapter-6

SUMMARY AND CONCLUSION

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6.1- Summary of Learning Experience

Punjab National Bank gave me a great opportunity to explore the banking sector in the

economy. It really does have a lot of positive aspect, which are so lucrative that anybody

would be attracted towards having a deposit with the Bank.

Still I feel that are some areas where Punjab National Bank have to improve upon to have

the complete faith of the consumers. These areas are highlighted as:

Punjab National Bank seems to have been concentrating more on numbers (the

numbers of deposits) specially saving / current account that they can produce and in

the process the “After Sale” services has lagged behind.

The sales term has gone far ahead of the customers care unit and so Punjab National

Bank have to do something to improve the services that they provide to the customer.

The customer satisfaction is not there. Once an account is opened, many a time they

are considered as permanent and the customer services is relaxed. The bank should

remember that a single satisfied customer could be a great help in bringing in new

accounts for the bank by giving reference.

There are so many PNB‟s ATM‟s. A customer feels proud in visiting their own banks

ATM. It‟s all right that PNB account holder can access their account through other

banks ATM as well, but that appeal of belongingness does not exist when a customer

goes into other banks ATM. The customer feels proud of Punjab National Bank

account, its hottest brand name and they want other people to see them enter into a

Punjab National Bank ATM to access their account and so the management should

try and increase the number of PNB‟s own ATM centers, especially in and around

cinema halls like PVR, shopping complexes etc.

Fixed deposit rates have goes down very much; PNB should create some mechanism

to bring about some kind of stability in the interest rates.

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6.2 – Conclusion and Recommendations

Conclusion

The project study selected was to study the features of various products of Punjab

National Bank as well as comparison with SBI Bank, AXIS Bank etc as well as to

analyze and evaluate the customer satisfaction and awareness towards the account they

are maintaining with Punjab National Bank. The analysis of the data collected and its

interpretation revealed the information regarding the satisfaction of the customers

towards the products and services and also their awareness regarding the benefits of

having relationship with Punjab National Bank.

One of the corporate visions of Punjab National Bank is to serve their customers

in the most efficient manner and to gain maximum consumer satisfaction. With cut-throat

competition in the industry, almost all banks try provide same service. Thus the company

should focus on providing the customers with added benefits to gain maximum

satisfaction.

The study undertaken helped to obtain suggestions for improvement of product and

services, it also helped is finding out the satisfaction level of the account holders. The

study also showed that most of the people are approached by the staff of Punjab national

Bank regarding opening of account.

Also, most of the customers are aware of the benefits of having an account is PNB

however objective of a salary account holder may be different from a priority customer or

a normal account holder. A considerable number of customers are satisfied with the

presence of number of PNB branches as well as ATM in Delhi.

Creating and keeping a portfolio of customer up to date will help the company know

where to focus heir marketing, sales and support and product development efforts? It will

also helps in designing more customer centric products.

The study conducted on customer satisfaction towards Punjab National Bank deposits

reveals a lot of useful information which can help the marketing managers to frame future

policies accordingly and work towards improving the performance and acceptance its

product and services.

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Recommendations

1. Punjab National Bank should concentrate more on advertising and publicity of its

products.

2. Punjab National Bank should create awareness the customers about the various

benefits of having an account in this bank.

3. Good customer relationship should be maintained and suggestions from

customers may be taken from to time so as to improve the product features and

service.

4. Some respondents have complained that the Punjab National Bank do not intimate

the customer after debiting the charges. The bank should avoid such

inconvenience to customers in the future. There should be proper communication

between the customer and the bank and should be clear about the charges.

5. Punjab National Bank should be open new branches at prime location and not to

forget remote areas which are still untapped.

6. In case of Normal savings account and Salary power, instead of giving quarterly

statement, bank should give the statement, bank should give the statement

fortnightly so that customer does not have to wait for 3 months every time. And

dispatch of the statement should be on time. Delay causes inconvenience to

customers.

7. Punjab National Bank should be more aggressive in promoting their products.

8. Bank should be in regular touch of the customers so that they can develop a feeling

that Punjab National Bank is taking care of all their banking needs.

9. Existing customers should be communicated properly about any new products or

facility. Mode of communication could be either telephone or through SMS, mail or

through letter.

10. Maximum people having accounts in PNB are still not aware of the financial advisory

services. Bank should make them aware and encourage them to take the advice. It will

not only help the customer earn some more money but it will also strengthen the

relationship between the customer and the bank and of course it will help bank earn

customers loyalty the bank and of course it will help bank earn customers loyalty.

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11.Comparing the satisfaction level of Current account holder regarding the behavior

of employees they interact with in bank with that of normal account holder and it is

much less.

12. Punjab National Bank should reintroduce Students account. Today almost all banks

have student account facility. Students are good source of advertisement, especially

through „word of mouth‟. Giving them good service will not only help in earning their

loyalty but will also help in increasing the customer base. These students may become a

loyal customer and may be a priority customer in the future and give good business to the

bank in terms of number and volume.

SOME MORE SUGGESTIONS

In the period 60 days of my internship, I personally deal with the:

Current account

Several times I face many difficulties during my work. So, some majors should be taken

to improve the marketing strategy of this bank. As per my experience I am suggesting

some points for that.

First of all I like to say about the promotion. It has a vital role to sale any type of

products.

PNB should improve its promotional strategy. Some more advertisement in

electronic media and in print media should be given. Apart from that other

promotional tactics like billing, distributing pamphlets, colorful brochures etc. should

be distributed among the customers.

And those promotional majors should be lucrative.

For processing loan, cooperation between branch and Hub should be improved.

In case of O/D scheme I face a problem regarding the guarantor. Many customers

became uninterested after knowing that a guarantor should be needed for the loan.

So, for O/D scheme PNB should think about this point.

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APPENDIX

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61

A survey On Customer Satisfaction In Banking Services

1.Name:

2.Address:

3.Occupation:

4.AnnualIncome:

5.NameofyourBank:

6. Do you think that your bank caters all your banking needs?

(a) Yes (b) No

7. What kind of account do you maintain in this bank?

(a)Current (b)Savings (c)Loan a/c (d)Demat (e)Credit card

8. Which of the following facilities is given more importance in your bank

(a)Loan facilities (b)O/D facilities (c)ATM facilities

9. Does your bank have core banking facility for the customers

(a) Yes (b) No

10. Do they charge unnecessarily for not maintain minimum balance in

your account

(a) Yes (b) No

11. Do you think your bank offers competitive interest rate

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(a) Yes (b) No

12. Do you use the service of alternative bank

(a) Yes (b) No

13. What do you feel about overall service quality of your

bank.

(a)Excellent (b)very good (c)good (d)average (e)poor

14. Would you recommend this bank to your friends, relatives,

associates

(a) Yes (b) No

15. When do you think of your bank what comes first in your mind

(a)Personalised service (b)Wide branch network (c)Customer

service (d)computerised banking (e)Core banking

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16. Facilities provided on Current Account ?

Signature:

Date:

SERVICES NOT IMPORTANT AVERAGE VERY IMPORTANT

Interest Facility

Free e-mail statement

Discount on Service

charges

Standing instruction

Outstation cheque

collection

50 leaves cheque book

free per quarter

Nomination facility

Free internet banking

Free debit card

RTGS/NEFT available

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Account Opening Form

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Awards

Awards & Achievements of Punjab National

Bank in Recent Times

PNB Awarded SKOCH

Challenger Award 2011 on Financial

Inclusion

Punjab National Bank declared winner of"SKOCH

Challenger Award on Financial Inclusion". Sh. M.V.

Tanksale and Shri Rakesh Sethi, EDs, PNB receiving

award from Dr. C Rangarajan, Chairman of the Prime

Minister's Economic Advisory Council, at a

function held at New Delhi.

PNB Awarded Best Technology

Bank 2010

Punjab National Bank declared winner of"Best

Technology Bank 2010". Sh. M.V. Tanksale, ED, PNB

and Sh. Ajay Misra, GM, PNB receiving award from

Hon’ble Ex-President of India Sh. A.P.J Abdul

Kalam at the Banking Technology Conference held at

Mumbai.

PNB AWARDED GOLDEN

PEACOCK AWARD FOR TRAINING

PRESS RELEASE

PNB declared winner of the Golden Peacock Awards

for Training. Smt. Sushma Bali, GM and Sh. J.P.

Kapoor, DGM, PNB receiving award from Hon'ble Sh. K

Sankaranarayanan, Governor of Maharashtra and Sh.

P.N. Bhagwati Ex-Chief Justice of India.

PNB AWARDED NIRYAT BANDHU

BRONZE TROPHY

PRESS RELEASE Hindi

PRESS RELEASE English

Sh. K.R.Kamath, CMD, PNB receiving Niryat Bandhu

Award from Hon’ble Sh. Jyotiraditya Scindia, Minister

of State for Commerce and Industry. Seen in the

picture is Sh. S.K.Dubey, GM, PNB.

PNB Received Excellent

Performance in Lending Under

PMEGP Scheme award

Sh. Nagesh Pydah, Executive Director, PNB receiving

'excellent performance in lending under PMEGP

scheme' award from Sh. Dinsha Patel, MoS

(Independent Charge) and Sh. Dinesh Rai, Secretary,

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SME PRESS RELEASE Hindi

MSME PRESS RELEASE

Ministry of Micro, Small & Medium Enterprises.

K,R.Kamath, CMD, PNB is receiving

the Best Bank Award

at Hyderabad from Shri D. Subbarao, Governor, RBI .

Dr. K.C. Chakrabarty, Dy. Governor, RBI, Mr. Samba

Murthy, Director, IDRBT, Mr. S Ganesh Kumar, CGM,

IDRBT and Mr. Ajay Misra, GM, PNB are also seen in

the photograph.

Outlook Money Award 2010 Outlook Money Award for the year 2010 for "Best

Home Loan Provider"

Outlook Money Award 2010 Outlook Money Award for the year 2010 for

"Best Education Loan Provider"

2nd prize of Indira Gandhi

Rajbhasha Shield by Dept. of Indian

Official Language, Ministry of Home

Affairs, GOI

for promoting Hindi for the year 2008-09.

Gold trophy of SCOPE Meritorious

Award for Excellence in Corporate

Governance in 2009

By Standing Conference of Public Enterprises.

5th Social and Corporate

Governance Award Under the

Category of "Best Corporate Social

Responsibility Practice"

By Bombay Stock Exchange for 2010

Skoch Awards 2010 for

"Computerisation of RRBs" By Skoch for 2010

Global HR Excellance Award 2010

for the outstanding Contribution to

the cause of Education

World HRD Congress

Asia Best Employer Brand Award"

for Excellence in Training

By World HRD Congress for 2010

Award for Brand Excellance" under

Banking & Financial Services

By CMO Asia for 2010

"CSR Excellence Award 2010" By ASSOCHAM

Skoch Challenge Award 2010 For Livelihood Linkage of the milk producers in

Bulandshahr District, Uttar Pradesh

Best use of Technology for

Financial Inclusion for 2009-10. By IDRBT.

Best Employer Brand Award

Regional Round Award Winners-

Indore

By Employer Branding Institute, India

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BIBLIOGRAPHY

BOOKS:

Financial management- C.R. Kothari

Fundamental of financial management- C.B. Gupta

Marketing management- C.B. Gupta

MAGZINES:

Business world

India today

WEBSITES:

www.pnbindia.com

http://www.answes/pnb.com

www.rupeetalk.com

http://www.google.com