PNB Term Paper

8/6/2019 PNB Term Paper

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A

TERM PAPER

ON

“CUSTOMER SATISFACTION AT

PUNJAB NATIONAL BANK ”

Submitted in partial fulfillment for the award of

Degree of

Master of Business Administration

Department of Management StudiesJai Narain Vyas University, Jodhpur

(2011-2012)

Under the supervision of: Submitted by:Dr. Meeta Nihalani AMARJEET KAUR (Head of Department) MBA II Semester Dept. Of Management Studies



ACKNOWLEDGEMENT

With regard to my term paper with “Customer Satisfaction at Punjab

National Bank” I would like to thank each and every one who offered

help, guideline and support whenever required.

I am extremely grateful to my supervisor, Dr. (Mrs.)Meeta

Nihalani, Head of Department for their valuable guidance and timely

suggestions and for providing me this opportunity, and all faculty members

of DEPARTMENT OF MANAGEMENT STUDIES, JODHPUR for the

valuable guidance& support.

I would also like to extend my thanks to all the respondents

who invested their valuable time in my study and my family and friends

for their support.

Amarjeet Kaur



CERTIFICATE

DEPARTMENT OF MANAGEMENT STUDIES

JAI NARAIN VYAS UNIVERSITY, JODHPUR

This is to certify that Miss. Amarjeet kaur student of

Department of Management Studies, Jodhpur, has

completed project work on “CUSTOMER SATISFACTION AT

PUNJAB NATIONAL BANK IN JODHPUR” under my guidance

and supervision.

I certify that this is an original work and has not been copied

from any source.

Signature of Supervisor

Dr. (Mrs.) Meeta Nihalani



INTRODUCTION

Punjab National Bank of India, the first Indian bank started only withIndian capital, was nationalized in July 1969 and currently the bank has

become a front-line banking institution in India with 4525 Offices including432 Extension Counters. The corporate office of the bank is at New Delhi.Punjab National Bank of India has set up representative offices at Almaty(Kazakhistan), Shanghai (China) and in London and a full fledged Branch inKabul (Afghanistan).

Punjab National Bank with 4497 offices and the largest nationalized bank is

serving its 3.5 crore customers with the following wide variety of bankingservices:

• Corporate banking• Personal banking• Industrial finance• Agricultural finance• Financing of trade• International banking

Punjab National Bank has been ranked 38th amongst top 500 companies byThe Economic Times. PNB has earned 9th position among top 50 trusted

brands in India.

Punjab National Bank India maintains relationship with more than 200leading international banks world wide. PNB India has Rupee DrawingArrangements with 15 exchange companies in UAE and 1 in Singapore.

1.1 HISTORY OF THE BANK

Punjab National Bank (PNB) was registered on May 19, 1894 under theIndian Companies Act with its office in Anarkali Bazaar Lahore. The Bank is the second largest government-owned commercial bank in India withabout 4,500 branches across 764 cities. It serves over 37 million customers.The bank has been ranked 248th biggest bank in the world by Bankers



Almanac, London. The bank's total assets for financial year 2007 were aboutUS$60 billion. PNB has a banking subsidiary in the UK, as well as branchesin Hong Kong and Kabul, and representative offices in Almaty, Dubai, Oslo,and Shanghai.

• 1895: PNB commenced its operations in Lahore. PNB has thedistinction of being the first Indian bank to have been started solelywith Indian capital that has survived to the present. (The first entirelyIndian bank, the Ouch Commercial Bank, was established in 1881 inFaizabad, but failed in 1958.) PNB's founders included several leadersof the Swadeshi movement such as Dyal Singh Majithia and LalaHarKishen Lal,[1] Lala Lalchand, Shri Kali Prosanna Roy, Shri E.C.Jessawala, Shri Prabhu Dayal, Bakshi Jaishi Ram, and Lala DholanDass. Lala Lajpat Rai was actively associated with the management of

the Bank in its early years.• 1904: PNB established branches in Karachi and Peshawar.• 1940: PNB absorbed Bhagwan Dass Bank, a scheduled bank located

in Delhi circle.• 1947: Partition of India and Pakistan at Independence. PNB lost its

premises in Lahore, but continued to operate in Pakistan.• 1951: PNB acquired the 39 branches of Bharat Bank (est. 1942);

Bharat Bank became Bharat Nidhi Ltd.• 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 offices in Pakistan of Indian banks, including PNB'shead office, which may have moved to Karachi. PNB also had one or more branches in East Pakistan (Bangladesh).

• 1960s: PNB amalgamated Indo Commercial Bank (est. 1933) in arescue.

• 1969: The Government of India (GOI) nationalized PNB and 13 other major commercial banks, on July 19, 1969.

• 1976 or 1978: PNB opened a branch in London.• 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 fraudscandal.

• 1986: PNB acquired Hindustan Commercial Bank (est. 1943) in arescue. The acquisition added Hindustan's 142 branches to PNB'snetwork.



• 1993: PNB acquired New Bank of India, which the GOI hadnationalized in 1980.

• 1998: PNB set up a representative office in Almaty, Kazakhstan.• 2003: PNB took over Nedungadi Bank, the oldest private sector bank

in Kerala. Rao Bahadur T.M. Appu Nedungadi, author of Kundalatha,one of the earliest novels in Malayalam, had established the bank in1899. It was incorporated in 1913, and in 1965 had acquired selectedassets and deposits of the Coimbatore National Bank. At the time of the merger with PNB, Nedungadi Bank's shares had zero value, withthe result that its shareholders received no payment for their shares.

PNB also opened a representative office in London.

• 2004: PNB established a branch in Kabul, Afghanistan.

PNB also opened a representative office in Shanghai.PNB established an alliance with Everest Bank in Nepal that permitsmigrants to transfer funds easily between India and Everest Bank's 12

branches in Nepal.

• 2005: PNB opened a representative office in Dubai.• 2007: PNB established PNBIL - Punjab National Bank (International)

- in the UK, with two offices, one in London, and one in South Hall.Since then it has opened a third branch in Leicester, and is planning a

fourth in Birmingham. Gatin Gupta became Chairmen of Punjab National Bank.

• 2008: PNB opened a branch in Hong Kong.• 2009: PNB opened a representative office in Oslo, Norway.



1.2 ACHIEVEMENTS

• Punjab National Bank announced its Q1FY2010 results on 29 July2009, delivering 62% y-o-y growth in net profits to Rs832 crore

(Rs512cr), substantially ahead of expectations on account of largetreasury gains, apart from healthy operating performance.

• While the bank’s deposit growth was reasonably robust at 4.4%sequentially and 26.5% y-o-y, unlike the peers its growth inadvances also remained strong at 38% y-o-y.

• In spite of being at the forefront of PLR cuts, the bank posted a

healthy growth in Net Interest Income (NII) of 29% y-o-y.

• Other Income surged 113% y-o-y, driven by strong treasury gainsof Rs355 crore during the quarter in line with industry trends, evenas Fee income was also robust at 45% y-o-y, on the back of strong

balance sheet growth.

• Operating expenses were higher than expected on account of

Rs150 crore of provisions for imminent wage hikes.

• Gross and Net NPA ratios remained stable sequentially at 1.8%and 0.2%, with the bank not adopting the guidelines of treatingfloating provisions as part of tier 2 capital instead of adjustingagainst NPAs on express permission from the RBI.



1.3 VISION AND MISSION

Vision

• To evolve and position the bank as a world class, progressive, costeffective and customer friendly institution providingcomprehensive financial and related services.

• Integrating frontiers of technology and serving various segments of society especially weaker section.

• Commited to excellence in serving the public and also excelling incorporate values

Mission

•

To provide excellent professional services and improve its positionas a leader in financial and related services.

• Build and maintain a team of motivated workforce with high work ethos.

•Use latest technology aimed at customer satisfaction and act as aneffective catalyst for socio economic development.



VALUES AND ETHICS

• Bonding and Integrity

• Ethical conduct

• Periodic disclosure

•

Confidentiality and fair dealing

• Compliance with rules and regulations



SWOT ANALYSIS

STRENGTH

Wide network

Large number of customers

Fast adaptability to technology

Brand image

WEAKNESS

Casual behaviour

Corruption and red tapism

Slow decision making due to large hierarchy

High gross NPA



OPPORTUNITIES

Home to home banking services

Diversification towards other fields

Globalization

THREATS

Stiff competition from SBI and other private players.



What Do Customers Want?

Before we begin to create tools to measure the level of satisfaction, it is

important to develop a clear understanding of what exactly the customer

wants. We need to know what our customers expect from the products and

services we provide.

Customer expectations have two types –

Expressed

Implied

Expressed Customer Expectations are those requirements that are written

down n the contract and agreed upon by both parties for example, product

specifications and delivery requirements. Supplier’s performance against

these requirements is most of the items directly measurable.

Implied Customer Expectations are not written or spoken but are the ones

the customer would ‘expect’ the supplier to meet nevertheless. For example,

a customer would expect the service representative who calls on him to be

knowledgeable and competent to solve a problem on the spot.

There are many reasons why customer expectations are likely to change

overtime. Process improvements, advent of new technology, changes in

customer’s priorities, improved quality of service provided by competitors

are just a few examples.



The customer is always right. Supplier’s job is to provide the customer what

he/she wants, when he/she wants it. Customer satisfaction is customer’s

perception that a supplier has met or exceeded their expectations.

Major Attributes of customer satisfaction in banking industry can be

summarized as:

Product quality

Premium Outflow

Return on Investment

Services

Responsiveness and ability to resolve complaints and reject reports.

Overall communication, accessibility and attitude.

WHAT ARE THE TOOLS?

Customer expectations can be identified using various methods such as: Periodic contract reviews

Market research

Telephonic interviews

Personal visits

Warranty records

Informal discussions

Satisfaction surveys



Depending upon the customer base and available resources, we can

choose a method that is most effective in measuring the customer’s

perceptions. The purpose of the exercise is to identify priorities for

improvements. We must develop a method or combination of methods that

helps to continually improve service.

CUSTOMER SATISFACTION SURVEYS

Formal survey has emerged as by far the best method of periodically the

customer satisfaction. The survey are not marketing tools but an information

—gaining tool. Enough homework needs to be before embarking on the

actual survey. This includes:

Defining Objectives of the Survey

Design Survey approach

Develop questionnaires and forms

Administer Survey (Email, Telephone or Post)

Method of compiling data and analyzing the findings

Format of the report to present the findings

There is no point in asking irrelevant questions on a customer satisfaction

questionnaire. The basic purpose is to find out what we are doing right or

wrong. Where is the scope for improvement, where do we stand vis-à-vis

other suppliers. How we can serve the customer better?

A customer satisfaction measurement survey should at least identify the

following objectives:



Importance to customers (Customers priorities)

Customer’s perception of supplier’s performance

Your performance relative to customer’s priorities.

Priorities for improvement

Survey forms should be easy to fill out with minimum amount of time

and efforts on customer’s part. They should be designed to actively

encourage the customer to complete the questions. Yet they must provide

accurate data should also be sufficiently reliable for management decision

making. This can be achieved by incorporating objective type questions

where customer has to “rate” on scale of say 1 to 10. For repeated surveys,

you could provide the rating that was previously accorded by the customer.

This works like a reference point for the customer.

SCOPE OF THE STUDY

This study is limited to the consumers with in Jodhpur city. The study

will be able to reveal the preferences, needs, satisfaction of the customers

regarding the banking services, It also help banks to know whether the

existing products or services the are offering are really satisfying the

customers needs.

OBJECTIVE OF THE STUDY



To have an insight into the attitudes and behaviors of customers.

To find out the differences among perceived service and expected

service.

To produce an executive service report to upgrade service

characteristics.

To understand consumer’s preferences.

To access the degree of satisfaction of the consumers

RESEARCH METHODOLOGY

To know the response, the researcher used questionnaire method. It

has been designed as a primary research instrument. Questionnaires were

distributed to respondents and they were asked to answer the questions given

in the questionnaire.

The questionnaires were used as an instrumentation technique,

because it is an important method of data collection. The success of the

questionnaire method in collecting the information depends largely on

proper drafting. So in the present study questions were arranged and

interconnected logically. The structured questionnaire will reduce both

interviewers and interpreters bias.

Research Design



Secondary data- The secondary information was collected from the

published Sources such as Journals, Newspapers and Magazines and

websites...

Two types of secondary data were collected for the preparation of the project

work:

Internal Data was generated from company’s brochures, manuals and

annual reports

External Data, on the other hand, was generated from magazines, research

books, intranet and internet (websites).

Research instruments - A summated rating scale format was used, with

five choices per item ranging from "highly dissatisfied” to "highly satisfied.

In this all the questions were positively framed to study the impact of

independent variable like age, gender and education on the dependent

variable which is student development through knowledge.

Analysis of Data - All the data collected from the respondents was feeded

and tabulated and the analysis was done through the software of SPSS

version 16...

Research period - The research period of the study has from April 28, 2011

to May 25, 2011



Hypothesis

Null hypothesis

H101: There is no significant difference about facilities provided by the

banks and customer satisfaction amongst customers classified by age

coming to the banks of Jodhpur.

H1a1: There is significant difference about the facilities provided by the

banks and customer satisfaction amongst customers classified by age

coming to the banks of Jodhpur

H102: There is no significant difference about facilities provided by the bank

and customer satisfaction amongst customers classified by gender

coming to the banks of Jodhpur.


bank and the and customer satisfaction amongst customers classified

by gender coming to the banks of Jodhpur

H103: There is no significant difference about facilities provided by the

banks and customer satisfaction amongst customers classified by

occupation coming to the banks of Jodhpur.




bank and the and customer satisfaction amongst customers classified

by occupation coming to the banks of Jodhpur

Data analysis

1. Anova Linearity and Non-Linearity Test:-

Aim here is to find how Total Satisfaction varies in accordance to

change in each dimension, linearly or non-linearly, here both are scale

variables dependent and independent variable.

• The test for linearity if has a significance value smaller than 0.05,

indicates that there is a linear relationship.

• The test for deviation from linearity if has a significance value

smaller than 0.05, indicates that there is a non-linear relationship.

• If both relationships are present and if R 2<ETA2 it means non-linear

relationship exists.

2. One way Robust analysis of Variance:

• In the test for homogeneity of variance, if the significance value is

less than 0.05 than Welch and Brown-Forsythe is to be checked for

group difference, if significant value there is less than 0.05 then

Tamhane Post-hoc comparison for individual group difference will

be checked if it show significant value less than 0.05 than the

individual groups differs.



• Now, if in the test for homogeneity of variance, if the significance

value is more than 0.05 than simply One way anova table will be

checked, if there the significant value is less than 0.05 then Tukey

HSD Post-hoc comparison for individual group difference will be

checked if it show significant value less than 0.05 than the

individual group differs.

• It is mandatory to look for test for homogeneity of variance only

when the group is of nearly equal size. Welch test is more accurate

than Brown-Forsythe test hence it would be given priority during

analysis. For all those independent variables where homogeneity

constraints was satisfied Tukey table for Post hoc comparison is

shown and where robust estimates of Welch and Brown-Forsythe

are looked, there Tamhane table for Post hoc comparison is shown

(Monday, Klein, Lee, 2005).



(A) Descriptive statistics:Age

Frequency Percent Valid Percent Cumulative

Percent

Valid 20 to 30 54 54.0 54.0 54.0

30 to 40 36 36.0 36.0 90.0

above 40 10 10.0 10.0 100.0

Total 100 100.0 100.0Gender


Percent

Valid male 50 50.0 50.0 50.0

female 50 50.0 50.0 100.0

Total 100 100.0 100.0

Qualification


Percent

Valid under graduate 35 35.0 35.0 35.0

graduate 53 53.0 53.0 88.0

post graduate 12 12.0 12.0 100.0

Total 100 100.0 100.0



Provide_service_immediately

Frequency Percent Valid Percent

Cumulative

Percent

Valid Strongly Dissatisfied 8 8.0 8.0 8.0Dissatisfied 24 24.0 24.0 32.0

Neutral 27 27.0 27.0 59.0

Agree 33 33.0 33.0 92.0

Strongly Agree 8 8.0 8.0 100.0

Total 100 100.0 100.0



Avail_with_zero_bal


Percent

Valid Strongly Dissatisfied 4 4.0 4.0 4.0

Dissatisfied 16 16.0 16.0 20.0

Neutral 46 46.0 46.0 66.0

Agree 24 24.0 24.0 90.0

Strongly Agree 10 10.0 10.0 100.0

total 100 100.0 100.0



Easily_approachable


Percent


Neutral 27 27.0 27.0 51.0

Agree 29 29.0 29.0 80.0

Strongly Agree 20 20.0 20.0 100.0

Total 100 100.0 100.0



Continue_with_this_bank

Frequency Percent Valid Percent

Cumulative

Percent


Neutral 28 28.0 28.0 62.0

Agree 31 31.0 31.0 93.0

Strongly Agree 7 7.0 7.0 100.0Total 100 100.0 100.0



satisfied_with_facilities_and_services

Frequency Percent Valid PercentCumulative

Percent

Valid StronglyDissatisfied

8 8.0 8.0 8.0

Dissatisfied 14 14.0 14.0 22.0

Neutral 36 36.0 36.0 58.0

Agree 32 32.0 32.0 90.0

Strongly Agree 10 10.0 10.0 100.0

Total 100 100.0 100.0



(B) Inferential statistics

Part -1:

One Way Anova of total satisfaction by age

Test of Homogeneity of Variances

Total satisfaction

Levene Statistic df1 df2 Sig.

1.540 2 97 .220

ANOVA

Total satisfaction

Sum of

Squares df Mean Square F Sig.

Between

Groups148.745 2 74.373 5.226 .007

Within Groups 1380.415 97 14.231

Total 1529.160 99



Robust Tests of Equality of Means

Total satisfaction

Statistica df1 df2 Sig.

Welch 9.947 2 31.679 .000

Brown-Forsythe7.223 2 75.389 .001

a. Asymptotically F distributed.

Post Hoc Tests



Multiple Comparisons

Dependent Variable: Total

satisfaction

(I) Age (J) Age

Mean

Difference

(I-J)

Std.

Error Sig.

95% Confidence

Interval

Lower

Bound

Upper

Bound

Tamhan

e

20 to

30

30 to

401.481 .809 .197 -.49 3.45

above

40-2.763* .931 .022 -5.18 -.35

30 to

40

20 to

30-1.481 .809 .197 -3.45 .49

above

40-4.244* .943 .001 -6.69 -1.80

above

40

20 to

302.763* .931 .022 .35 5.18

30 to

404.244* .943 .001 1.80 6.69

*. The mean difference is significant at the

0.05 level.

Analysis: Groups are of nearly equal sizes (from descriptive), Homogeneityof variance shows ‘non-significant’ value, with anova table showing

significant value, hence Tamhane Post Hoc test is requested. 20-30 age

groups have significant lower satisfaction level than 30-40 & 40 and above

age groups.



Part -2

One Way ANOVA of total satisfaction by gender

Test of Homogeneity of Variances

Total satisfaction

Levene Statistic df1 df2 Sig.

4.958 1 98 .028

ANOVA

Total satisfaction

Sum of Squares df Mean Square F Sig.

BetweenGroups 29.160 1 29.160 1.905 .171

Within Groups 1500.000 98 15.306

Total 1529.160 99


Total satisfaction

Statistica df1 df2 Sig.

Welch 1.905 1 88.121 .171

Brown-Forsythe1.905 1 88.121 .171

Analysis: Groups are of unequal sizes (from descriptive), we therefore

directly look at Welch and Brown-Forsythe test, and it shows significant



value hence satisfaction differs in gender group. Male is having high

satisfaction than female (from descriptive).

Part -3

One Way ANOVA of total satisfaction by education

Toal_satisfactionLevene Statistic df1 df2 Sig.

2.290 2 97 .107

ANOVA

Total satisfaction

Sum of

Squares df Mean Square F Sig.BetweenGroups

115.727 2 57.864 3.971 .022

Within Groups 1413.433 97 14.571

Total 1529.160 99


Total satisfactionStatistica df1 df2 Sig.

Welch 3.563 2 43.198 .037

Brown-Forsythe 5.372 2 83.972 .006

a. Asymptotically F distributed.



Post Hoc Tests

Multiple Comparisons

Dependent Variable:Total_satisfaction

(I)Qualification

(J)Qualification

MeanDifferenc

e (I-J)Std.

Error Sig.

95% ConfidenceInterval

Lower Bound

Upper Bound

Tamhane

under graduate

graduate -2.336* .874 .028 -4.47 -.20

postgraduate

-1.657 .897 .201 -3.89 .58

graduate under

graduate2.336* .874 .028 .20 4.47

postgraduate

.679 .792 .781 -1.31 2.67

postgraduate

under graduate

1.657 .897 .201 -.58 3.89

graduate -.679 .792 .781 -2.67 1.31

*. The mean difference is significant atthe 0.05 level.

Analysis: Groups are of unequal size, we therefore directly look at Welch

and Brown-Forsythe test, and it shows significant value, hence Tamhane

Post Hoc test is requested. Graduate education group has significant lower

satisfaction level than post graduate and above post graduate education

group.



Part 4

T-Test



One-Sample Statistics

N Mean Std. DeviationStd. Error

Mean

Provide_service_immedi

ately 100 3.09 1.102 .110Avail_with_zero_bal 100 3.20 .964 .096

Easily_approachable 100 3.39 1.171 .117

Continue_with_this_bank

100 2.95 1.192 .119

satisfied_with_facilities_ and_services

100 3.22 1.069 .107

Responsible_for_tasks__

services_its_customers

100 3.41 1.240 .124

Proper_records_of_all_tr ansactions

100 3.54 1.123 .112

Treat_u_politely 100 2.86 1.137 .114

Employees_perform_their_duty_on_time

100 3.27 1.109 .111

fulfil_ur_reqirement 100 3.13 1.089 .109

Communication_skill_ar e_important

100 3.72 .965 .096

Toal_satisfaction 100 35.78 3.930 .393



One-Sample Test

Test Value = 2.75

t df Sig. (2-tailed)

MeanDifferenc

e

95% ConfidenceInterval of the

DifferenceLower Upper

Provide_service_ immediately

3.086 99 .003 .340 .12 .56

Avail_with_zero _bal

4.668 99 .000 .450 .26 .64

Easily_approacha ble

5.465 99 .000 .640 .41 .87

Continue_with_this_bank 1.677 99 .097 .200 -.04 .44

satisfied_with_facilities_and_services

4.396 99 .000 .470 .26 .68

Responsible_for_ tasks__services_its_customers

5.323 99 .000 .660 .41 .91

Proper_records_o

f_all_transactions

7.035 99 .000 .790 .57 1.01

Treat_u_politely -.967 99 .336 .110 -.12 .34

Employees_perform_their_duty_on_time

4.690 99 .000 .520 .30 .74

fulfil_ur_reqirement

3.491 99 .001 .380 .16 .60

Communication_ skill_are_importa

nt

10.054 99 .000 .970 .78 1.16

Toal_satisfaction 84.043 99 .000 33.030 32.25 33.81

Analysis: Factors number 8 having negative significant value that is bank

must be treat politely to customers so that they satisfied to this bank.



CONCLUSION:

The project entitled “A STUDY TO UNDERSTAND THE

CUSTOMER SATISFACTION AT PNB”has helped me in studying

satisfaction about services and products offered to consumers.

Since the opening up of the banking sector, private banks are in

the fray each one trying to cover more market share than the other.

Yet, PNB is far behind SBI. PNB must also be alert what with

Private Banks (ICICI, HDFC) breathing down its neck.

I am sure the bank will find my findings relevant and I sincerely

hope it uses my suggestions enlisted, which I hope will take them

miles ahead of competition.

In short, I would like to say that the very act of the concerned

management at PNB in giving me the job of critically examining

consumer satisfaction towards financial products and services of the

company is a step in their continual mission of making all round

improvements as a means of progress.

I am sure the bank has a very bright future to look forward to

and will be a trailblazer in its own right.



References:

1. Reference by: Times of India

2. www.pnb.com

http://www.pnb.com/

http://www.pnb.com/

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