Strategic Analysis of Punjab National Bank

By

Bimlesh Kumar(14HM06) NITK,Surathkal

Punjab National Bank was registered on 19 May 1894 under the Indian Companies Act with its office in Anarkali Bazaar Lahore.

The banked opened for business on 12 April,1895.

PNB’s founder included several leaders of the Swadeshi Movement such as Dayal Singh, Majithia and Lala Har Kishen Lal, Lala Lalchand, Shri Kali Prosanna Roy, Shri E.C. Jessawala, Sri Prabhu Dayal, Bakshi Jaishi Ram and Lala DholanDass. Lala Lajpat Rai was actively associated with the management of the Bank in its early years.

Personal Banking Saving Fund Account

Current Account

Fixed Deposit Account

Credit Schemes

Social BankingBusiness Responsibility Report

Financial Inclusion

Priority Sector

MSME BankingScheme for financing micro and small enterprises

Traders Finance

Super Trade

Agricultural BankingAgri Business Cell

Agricultural Banking

Farmers

Corporate BankingCash Management Services

Gold Card Scheme for Exporters

International BankingNRI Services

Offshore Banking Unit

Online BankingInternet Banking

Bill Payments

Share trading

Mobile Banking

"To be a Leading Global Bank with Pan India footprints and become a household brand in the Indo-Gangetic Plains providing entire range of financial products and services under one roof"

"Banking for the unbanked“

Core Values:-1. Doing the right thing- Each of us has the freedom , authority

and responsibility to do the right thing for our clients , customers ,

communities and each other.

2. Trusting and Team work- We rely on each other and

succeed together. We take collective responsibility for the quality

of client and customer experiences.

3. Inclusive meritrocracy- we care about each other , focus on

result and strive to help all associates develop their potential.

4. Winning- We have a passion for achieving , results and winning

for our clients and customers , for our teammates and communities and for our shareholders.

Strengths:- Improved profitability Expanding market share in sector Wide market presence

Weaknesses:- Increased debt Higher employee cost Deteriorating assets quality

Opportunities Meeting diversified product need

Geographic expansion

Positive Indian Bank sector outlook

Threats Business consolidation intensifying competition

Need for skilled workforce

Global economic imbalances

Economic:-The public/ nationalised banks of the country were not much hampered by the same. Inspite of the good mean ratings that all the banks have got on this front, ANOVA has indicated a significant difference among the selected banks. Post-Hoc analysis meanwhile has not indicated significant difference in between ICICI Bank and PNB at 1 per cent level of significance.

Social:-Being a socially responsible organization, we contribute to society through

the PNB Farmers Welfare Trust, PNB Centenary Rural Development Trust, PNB Prerna, Farmers’ Training Centres, Financial Literacy & Credit Counselling Centres, Rural Self Employment & Training Institutes and other such initiatives. We help the under-privilege communities overcome unemployment and poverty and shape their own future through awareness creation and up skilling them.

Technology and EnvironmentalWe have implemented some quick win “Green practices” to conserve resources be it electricity, water, paper, etc. We have introduced “Green audit” of all our functional units to sensitise the staff towards sustainable practices. We are making efforts for rainwater harvesting in existing buildings and new constructions are environment friendly. We are promoting wind energy and popularizing solar energy usage in rural areas.

Legal:-

Banks are paying moderate to high attention on scanning of legal environment as mean scores obtained by these have varied between 3.78 (PNB) to 4.03 (SBI). ANOVA and Post-Hoc tests have not indicated significant difference among and in between them. Managers of all the selected banks claimed that banking rules and regulations keep on changing and they need to keep an eye on such changes. Still, the same do not bother them as much as few other external environmental happenings. The same is reflected in neither an extremely high nor extremely low mean scores that the banks have got.

PNB has established itself firmly as one of the premier banking institutions in the country with a long tradition of sound and prudent banking.

The first ever and the only merger of a nationalized bank with PNB was in 1993, viz., New Bank of India.

In 2002, 20% of government ownership was disinvested through a very successful

IPO to the public. In 2003, the erstwhile Nedungadi Bank Ltd (e-NBL), a Kerala based private bank was amalgamated with Punjab National Bank.

During 2008-09, the Bank achieved the landmark of becoming the largest Nationalized Bank to bring ALL BRANCHES/EXTENSION COUNTERS into Core Banking Solution (CBS). The strong franchise enjoyed by the Bank, combined with its technological capabilities provides the Bank competitive advantages.