project report on punjab national bank aakash

A Study On Various Services Offered By Punjab National Bank 0421911706

Summer Training Report

ON

A Study On Various Services Offered By Punjab National Bank

Summer Training Report

Submitted for Partial fulfillment for the Award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

BBA(Gen.)

UNDER THE SUPERVISION OF:

Rajesh.S.Pyngavil

SUBMITTED BY:

AAKASH SAXENA

ENROL. NO. 0421911706

GITARATTAN INTERNATIONAL BUSINESS SCHOOL

(Affiliated to GURU GOBIND SINGH INDERPRASTHA UNIVERSITY)

ROHINI, NEW DELHI-110085

(2006-2009)

Gitarattan international business school 1


Chapter-1

Introduction



Chapter 1

General Introduction

Bank may be defined as a financial institution which is engaged in the business of keeping

money for savings and checking accounts or for exchange or for issuing loans and credit etc.

A set of services intended for private customers and characterized by a higher quality than the

services offered to retail customers.

Based on the notion of tailor-made services, it aims to offer advice on investment, inheritance

plans and provide active support for general transactions and the resolution of asset-related

problems.

The essential function of a bank is to provide services related to the storing of deposits and

the extending of credit.Basic function may include Credit collection, Issuer of banking notes,

Depositor of money and lending loans.

Now a days banking is not in its traditional way , with the advancement of technology its

focusing on more comfort of customer providing services such as:

online banking

investment banking

electronic banking

internet banking

pc banking /mobile banking

e-banking

The importance of banking sector is immense in the progress and prosperity of any State or

country.

A Brief History

Banking in India originated in the last decades of the 18th century. The oldest bank in

existence in India is the State Bank of India, a government-owned bank that traces its origins


http://en.wikipedia.org/wiki/State_Bank_of_India

http://www.google.co.in/search?hl=en&oi=definer&q=define:e-banking&defl=en

http://www.google.co.in/search?hl=en&oi=definer&q=define:pc+banking&defl=en

http://www.google.co.in/search?hl=en&oi=definer&q=define:internet+banking&defl=en

http://www.google.co.in/search?hl=en&oi=definer&q=define:electronic+banking&defl=en

http://www.google.co.in/search?hl=en&oi=definer&q=define:investment+banking&defl=en

http://www.google.co.in/search?hl=en&oi=definer&q=define:online+banking&defl=en


back to June 1806 and that is the largest commercial bank in the country. Central banking is

the responsibility of the Reserve Bank of India, which in 1935 formally took over these

responsibilities from the then Imperial Bank of India, relegating it to commercial banking

functions. After India's independence in 1947, the Reserve Bank was nationalized and given

broader powers. In 1969 the government nationalized the 14 largest commercial banks; the

government nationalized the six next largest in 1980.

Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is

with the Government of India holding a stake), 31 private banks (these do not have

government stake; they may be publicly listed and traded on stock exchanges) and 38 foreign

banks. They have a combined network of over 53,000 branches and 17,000 ATMs.

According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75

percent of total assets of the banking industry, with the private and foreign banks holding

18.2% and 6.5% respectively

Origin of the Industry

Banking in India originated in the last decades of the 18th century. The first banks were The

General Bank of India, which started in 1786, and the Bank of Hindustan, both of which are

now defunct. The oldest bank in existence in India is the State Bank of India, which

originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank

of Bengal. This was one of the three presidency banks, the other two being the Bank of

Bombay and the Bank of Madras, all three of which were established under charters from the

British East India Company. For many years the Presidency banks acted as quasi-central

banks, as did their successors. The three banks merged in 1925 to form the Imperial Bank of

India, which, upon India's independence, became the State Bank of India.

Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a

consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and

still functioning today, is the oldest Joint Stock bank in India. It was not the first though. That

honor belongs to the Bank of Upper India, which was established in 1863, and which

survived until 1913, when it failed, with some of its assets and liabilities being transferred to

the Alliance Bank of Simla.


http://en.wikipedia.org/wiki/Alliance_Bank_of_Simla

http://en.wikipedia.org/wiki/Allahabad_Bank

http://en.wikipedia.org/wiki/Imperial_Bank_of_India

http://en.wikipedia.org/wiki/Imperial_Bank_of_India

http://en.wikipedia.org/wiki/Bank_of_Madras

http://en.wikipedia.org/wiki/Bank_of_Bombay

http://en.wikipedia.org/wiki/Bank_of_Bombay

http://en.wikipedia.org/wiki/Bank_of_Bengal

http://en.wikipedia.org/wiki/Bank_of_Bengal

http://en.wikipedia.org/wiki/Automated_teller_machine

http://en.wikipedia.org/wiki/Government_of_India

http://en.wikipedia.org/wiki/Reserve_Bank_of_India


When the American Civil War stopped the supply of cotton to Lancashire from the

Confederate States, promoters opened banks to finance trading in Indian cotton. With large

exposure to speculative ventures, most of the banks opened in India during that period failed.

The depositors lost money and lost interest in keeping deposits with banks. Subsequently,

banking in India remained the exclusive domain of Europeans for next several decades until

the beginning of the 20th century.

Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire

d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862;

branches in Madras and Pondichery, then a French colony, followed. HSBC established itself

in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade

of the British Empire, and so became a banking center.

The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in

1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank, established in

Lahore in 1895, which has survived to the present and is now one of the largest banks in

India.

Around the turn of the 20th Century, the Indian economy was passing through a relative

period of stability. Around five decades had elapsed since the Indian Mutiny, and the social,

industrial and other infrastructure had improved. Indians had established small banks, most of

which served particular ethnic and religious communities.

The presidency banks dominated banking in India but there were also some exchange banks

and a number of Indian joint stock banks. All these banks operated in different segments of

the economy. The exchange banks, mostly owned by Europeans, concentrated on financing

foreign trade. Indian joint stock banks were generally under capitalized and lacked the

experience and maturity to compete with the presidency and exchange banks. This

segmentation let Lord Curzon to observe, "In respect of banking it seems we are behind the

times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into

separate and cumbersome compartments."

The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi

movement. The Swadeshi movement inspired local businessmen and political figures to

found banks of and for the Indian community. A number of banks established then have


http://en.wikipedia.org/wiki/Swadeshi

http://en.wikipedia.org/wiki/Joint_stock_company

http://en.wikipedia.org/wiki/Indian_rebellion_of_1857

http://en.wikipedia.org/wiki/Lahore

http://en.wikipedia.org/wiki/Punjab_National_Bank

http://en.wikipedia.org/wiki/Faizabad

http://en.wikipedia.org/wiki/British_Raj

http://en.wikipedia.org/wiki/Bengal

http://en.wikipedia.org/wiki/HSBC

http://en.wikipedia.org/wiki/Pondichery

http://en.wikipedia.org/wiki/Chennai

http://en.wikipedia.org/wiki/Mumbai

http://en.wikipedia.org/w/index.php?title=Comptoire_d'Escompte_de_Paris&action=edit&redlink=1

http://en.wikipedia.org/w/index.php?title=Comptoire_d'Escompte_de_Paris&action=edit&redlink=1

http://en.wikipedia.org/wiki/Kolkata

http://en.wikipedia.org/wiki/Confederate_States

http://en.wikipedia.org/wiki/Lancashire

http://en.wikipedia.org/wiki/American_Civil_War


survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of

Baroda, Canara Bank and Central Bank of India.

The fervor of Swadeshi movement lead to establishing of many private banks in Dakshina

Kannada and Udupi district which were unified earlier and known by the name South

Canara ( South Kanara ) district. Four nationalised banks started in this district and also a

leading private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle

of Indian Banking".

From World War I to Independence

The period during the First World War (1914-1918) through the end of the Second World

War (1939-1945), and two years thereafter until the independence of India were challenging

for Indian banking. The years of the First World War were turbulent, and it took its toll with

banks simply collapsing despite the Indian economy gaining indirect boost due to war-related

economic activities. At least 94 banks in India failed between 1913 and 1918 as indicated in

the following table:

Year Number of banks

that failed

Authorised Capital

(Rs. Lakhs)

Paid-up Capital

(Rs. Lakhs)

1913 12 274 35

1914 42 710 109

1915 11 56 5

1916 13 231 4

1917 9 76 25

1918 7 209 1


http://en.wikipedia.org/wiki/Economy_of_India

http://en.wikipedia.org/wiki/Indian_independence_movement

http://en.wikipedia.org/wiki/Second_World_War

http://en.wikipedia.org/wiki/Second_World_War

http://en.wikipedia.org/wiki/First_World_War

http://en.wikipedia.org/wiki/Udupi_district

http://en.wikipedia.org/wiki/Dakshina_Kannada

http://en.wikipedia.org/wiki/Dakshina_Kannada

http://en.wikipedia.org/wiki/Central_Bank_of_India

http://en.wikipedia.org/wiki/Canara_Bank

http://en.wikipedia.org/wiki/Bank_of_Baroda

http://en.wikipedia.org/wiki/Bank_of_Baroda

http://en.wikipedia.org/wiki/Indian_Bank

http://en.wikipedia.org/wiki/Corporation_Bank

http://en.wikipedia.org/wiki/Bank_of_India


Post-independence

The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal,

paralyzing banking activities for months. India's independence marked the end of a regime of

the Laissez-faire for the Indian banking. The Government of India initiated measures to play

an active role in the economic life of the nation, and the Industrial Policy Resolution adopted

by the government in 1948 envisaged a mixed economy. This resulted into greater

involvement of the state in different segments of the economy including banking and finance.

The major steps to regulate banking included:

In 1948, the Reserve Bank of India, India's central banking authority, was

nationalized, and it became an institution owned by the Government of India.

In 1949, the Banking Regulation Act was enacted which empowered the Reserve

Bank of India (RBI) "to regulate, control, and inspect the banks in India."

The Banking Regulation Act also provided that no new bank or branch of an existing

bank could be opened without a license from the RBI, and no two banks could have

common directors.

However, despite these provisions, control and regulations, banks in India except the State

Bank of India, continued to be owned and operated by private persons. This changed with the

nationalisation of major banks in India on 19 July, 1969.

Nationalization of Banks

By the 1960s, the Indian banking industry has become an important tool to facilitate the

development of the Indian economy. At the same time, it has emerged as a large employer,

and a debate has ensued about the possibility to nationalise the banking industry. Indira

Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the annual

conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank

Nationalisation." The paper was received with positive enthusiasm. Thereafter, her move was

swift and sudden, and the GOI issued an ordinance and nationalised the 14 largest


http://en.wikipedia.org/wiki/Nationalisation


http://en.wikipedia.org/wiki/Prime_Minister_of_India

http://en.wikipedia.org/wiki/Indira_Gandhi

http://en.wikipedia.org/wiki/Indira_Gandhi

http://en.wikipedia.org/wiki/Indian_economy



http://en.wikipedia.org/wiki/Reserve_Bank_of_India

http://en.wikipedia.org/wiki/Mixed_economy


http://en.wikipedia.org/wiki/Laissez-faire

http://en.wikipedia.org/wiki/Indian_independence_movement

http://en.wikipedia.org/wiki/West_Bengal

http://en.wikipedia.org/wiki/Punjab,_India

http://en.wikipedia.org/wiki/Partition_of_India


commercial banks with effect from the midnight of July 19, 1969. Jayaprakash Narayan, a

national leader of India, described the step as a "masterstroke of political sagacity." Within

two weeks of the issue of the ordinance, the Parliament passed the Banking Companies

(Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval on 9

August, 1969.

A second dose of nationalization of 6 more commercial banks followed in 1980. The stated

reason for the nationalization was to give the government more control of credit delivery.

With the second dose of nationalization, the GOI controlled around 91% of the banking

business of India. Later on, in the year 1993, the government merged New Bank of India with

Punjab National Bank. It was the only merger between nationalized banks and resulted in the

reduction of the number of nationalised banks from 20 to 19. After this, until the 1990s, the

nationalised banks grew at a pace of around 4%, closer to the average growth rate of the

Indian economy.

The nationalized banks were credited by some, including Home minister P. Chidambaram, to

have helped the Indian economy withstand the global financial crisis of 2007- 009

Growth and Present Status of Banks

In the early 1990s, the then Narsimha Rao 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, 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.



http://en.wikipedia.org/wiki/HDFC_Bank

http://en.wikipedia.org/wiki/ICICI_Bank

http://en.wikipedia.org/wiki/UTI_Bank

http://en.wikipedia.org/wiki/Axis_Bank

http://en.wikipedia.org/wiki/Liberalization

http://en.wikipedia.org/wiki/Narsimha_Rao


http://en.wikipedia.org/wiki/P._Chidambaram

http://en.wikipedia.org/wiki/Home_Minister_of_India

http://en.wikipedia.org/wiki/Punjab_National_Bank

http://en.wikipedia.org/w/index.php?title=New_Bank_of_India&action=edit&redlink=1

http://en.wikipedia.org/wiki/President_of_India

http://en.wikipedia.org/wiki/Parliament_of_India

http://en.wikipedia.org/wiki/Jayaprakash_Narayan

http://en.wikipedia.org/wiki/1969

http://en.wikipedia.org/wiki/July_19


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 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 AMRO Bank N.V.

Abu Dhabi Commercial Bank Ltd

American Express Bank


http://en.wikipedia.org/wiki/American_Express_Bank

http://en.wikipedia.org/wiki/ABN_AMRO

http://en.wikipedia.org/wiki/Retail_banking

http://en.wikipedia.org/wiki/India


Antwerp Diamond Bank

Arab Bangladesh Bank

Bank International Indonesia

Bank of America

Bank of Bahrain & Kuwait

Bank of Ceylon

Bank of Nova Scotia

Bank of Tokyo Mitsubishi UFJ

Barclays Bank

BNP Paribas

Calyon Bank

ChinaTrust Commercial Bank

Citibank

DBS Bank

Deutsche Bank

HSBC (Hongkong & Shanghai Banking Corporation)

JPMorgan Chase Bank

Krung Thai Bank

Mashreq Bank

Mizuho Corporate Bank

Oman International Bank

Shinhan Bank

Société Générale


http://en.wikipedia.org/wiki/Soci%C3%A9t%C3%A9_G%C3%A9n%C3%A9rale

http://en.wikipedia.org/wiki/Mizuho_Corporate_Bank

http://en.wikipedia.org/wiki/Mashreq_Bank

http://en.wikipedia.org/wiki/Krung_Thai_Bank

http://en.wikipedia.org/wiki/JPMorgan_Chase

http://en.wikipedia.org/wiki/HSBC

http://en.wikipedia.org/wiki/Deutsche_Bank

http://en.wikipedia.org/wiki/DBS_Bank

http://en.wikipedia.org/wiki/Citibank

http://en.wikipedia.org/wiki/Calyon_Bank

http://en.wikipedia.org/wiki/BNP_Paribas

http://en.wikipedia.org/wiki/Barclays_Bank

http://en.wikipedia.org/wiki/Bank_of_Tokyo_Mitsubishi_UFJ

http://en.wikipedia.org/wiki/Bank_of_Nova_Scotia

http://en.wikipedia.org/wiki/Bank_of_Ceylon

http://en.wikipedia.org/wiki/Bank_of_America


Sonali Bank

Standard Chartered Bank

State Bank of Mauritius

Banks with Representative Offices in India:

American 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


http://en.wikipedia.org/wiki/Wachovia_Bank

http://en.wikipedia.org/wiki/State_Bank_of_Mauritius

http://en.wikipedia.org/wiki/Standard_Chartered_Bank


Natixis

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


http://en.wikipedia.org/wiki/Dresdner_Bank


Portuguese Banks

Caixa Geral de Depositos

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

Future of Banking Sector and Initiated Reforms


http://en.wikipedia.org/wiki/UBS


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.

Major Reforms In Banking Sector

Some of the major reform initiatives in the last decade that have changed the face of the

Indian banking and financial sector are:

• Interest rate deregulation. Interest rates on deposits and lending have been deregulated

with banks enjoying greater freedom to determine their rates.

• Adoption of prudential norms in terms of capital adequacy, asset classification, income

recognition, provisioning, exposure limits, investment fluctuation reserve, etc.



• Reduction in pre-exemptions – lowering of reserve requirements (SLR and CRR), thus

releasing more lendable resources which banks can deploy profitably. Government equity

in banks has been reduced and strong banks have been allowed to access the capital

market for raising additional capital.• Banks now enjoy greater operational freedom in

terms of opening and swapping of branches, and banks with a good track record of

profitability have greater flexibility in recruitment.

• New private sector banks have been set up and foreign banks permitted to expand their

operations in India including through subsidiaries. Banks have also been allowed to set up

Offshore Banking Units in Special Economic Zones.

• New areas have been opened up for bank financing: insurance, credit cards,

infrastructure financing, leasing, gold

banking, besides of course investment banking, asset management, factoring, etc.

• New instruments have been introduced for greater flexibility and better risk

management: e.g. interest rate swaps, forward rate agreements, cross currency forward

contracts, forward cover to hedge inflows under foreign direct investment, liquidity

adjustment facility for meeting day-to-day liquidity mismatch.

• Several new institutions have been set up including the National Securities Depositories

Ltd., Central Depositories Services Ltd., Clearing Corporation of India Ltd., Credit

Information Bureau India Ltd. • Limits for investment in overseas markets by banks,

mutualfunds and corporates have been liberalised. The overseas investment limit for

corporates has been raised to 100% of net worth and the ceiling of $100 million on

prepayment of external commercial borrowings has been removed. MFs and corporates

can now undertake FRAs with banks. Indians allowed to maintain resident foreign

currency (domestic) accounts. Full convertibility for deposit schemes of NRIs introduced.

• Universal Banking has been introduced. With bankspermitted to diversify into long-

term finance and DFIs into working capital, guidelines have been put in place for the

evolution of universal banks in an orderly fashion.



• Technology infrastructure for the payments and settlement system in the country has

been strengthened with electronic funds transfer, Centralised Funds Management

System,Structured Financial Messaging Solution, Negotiated Dealing System and move

towards Real Time Gross Settlement.

• Adoption of global standards. Prudential norms for capital adequacy, asset

classification, income recognition and provisioning are now close to global standards.

RBI has introduced Risk Based Supervision of banks (against the traditional transaction

based approach). Best international practices in accounting systems, corporate

governance,payment and settlement systems, etc. are being adopted.

• Credit delivery mechanism has been reinforced to increase the flow of credit to priority

sectors through focus on micro credit and Self Help Groups. The definition of priority

sector has been widened to include food processing and cold storage, software upto Rs 1

crore, housing above Rs 10 lakh,selected lending through NBFCs, etc.

• RBI guidelines have been issued for putting in place risk management systems in banks.

Risk Management

Committees in banks address credit risk, market risk and operational risk. Banks have

specialised committees to measure and monitor various risks and have been upgrading

their risk management skills and systems.

• The limit for foreign direct investment in private banks has been increased from 49% to

74% and the 10% cap on

voting rights has been removed. In addition, the limit for foreign institutional investment

in private banks is 49%.

• Wide ranging reforms have been carried out in the area of capital markets. Fresh

investment in CPs, CDs are allowed only in dematerialised form. SEBI has reduced the

settlement cycle from T+3 to T+2 from April 1, 2003 i.e. settlement of stock deals will be

completed in two trading days after the trade is executed, taking the Indian stock trading

system ahead of some of the developed equity markets. Stock exchanges will set up trade

guarantee funds. Retail trading in Government securities has been introduced on NSE and

BSE from January 16, 2003. A Serious Frauds Office is proposed to be set up. Fungibility

of ADRs and GDRs allowed.



Improvement in Performance of Commercial Banks

There is no doubt that banking sector reforms have increased the profitability,

productivity and efficiency of banks. There has been an improvement in overall capital

adequacy of banks and as on March 31, 2002 92 out of 97 commercial banks operating in

India had capital adequacy above the statutory minimum level of 9%. Introduction of

prudential norms relating to asset classification, income recognition and provisioning,

along with legal and institutional reforms, has led to visible improvement in asset quality

in banks. Net NPAs (i.e.that portion of NPAs which is not provided for) have declined

gradually from 10.7% in 1994-95 to 5.8% in 2001-02.Increase in the number of players

has increased competition, which is reflected in the decline in the bank concentration

ratio. The share of top 5 banks in total assets declined from 51.7% in 1991-92 to 43.5% in

2001-02 while its share in

profits fell from 54.5% to 41.4% in the same period.

Despite intensification of competition and introduction of prudential norms, all major

bank groups in India have remained profitable. The Return on Assets has hovered in the

range of 0.5-0.8% since the mid-1990s – while this is on the lower side compared to

many developing countries, it is higher than the profitability at around 0.5% in

industrialised countries. The improvement in efficiency is also seen from the

intermediation cost for scheduled commercial banks, which declined from 2.85% in

1996-97 to 2.19% in 2001-02·. According to data analysed by RBI, there has been a

noticeable decline in the difference between real interest rates in India and international

benchmark rates (LIBOR 1 year) since the mid-1990s, suggesting increased integration of

the Indian banking sector with the rest of the world.

Challenges Ahead

(i) Improving Profitability:

The most direct result of the above changes is increasing competition and narrowing of

spreads and its impact on the profitability of banks. The challenge for banks is how to

manage with thinning margins while at the same time working to improve productivity



which remains low in relation to global standards. This is particularly important because

with dilution in banks’equity, analysts and shareholders now closely track their

performance. Thus, with falling spreads, rising provision for NPAs and falling interest

rates, greater attention will need to be paid to reducing transaction costs. This will require

tremendous efforts in the area of technology and for banks to build capabilities to handle

much bigger volumes.

(ii) Reinforcing Technology:

Technology has thus become a strategic and integral part of banking, driving banks to

acquire and implement world class systems that enable them to provide products and

services in large volumes at a competitive cost with better risk management practices.

The pressure to undertake extensive computerisation is very real as banks that adopt the

latest in technology have an

edge over others. Customers have become very demanding and banks have to deliver

customised products through

multiple channels, allowing customers access to the bank round the clock.

(iii) Risk Management:

The deregulated environment brings in its wake risks along with profitable opportunities,

and technology plays a crucial role in managing these risks. In addition to being exposed

to credit risk, market risk and operational risk, the business of banks would be susceptible

to country risk, which will be heightened as controls on the movement of capital are

eased. In this context, banks are upgrading their credit assessment and risk management

skills and retraining staff, developing a cadre of specialists and introducing technology

driven management information systems.

(iv) Sharpening Skills:

The far-reaching changes in the banking and financial sector entail a fundamental shift in

the set of skills required in banking. To meet increased competition and manage risks, the

demand for specialised banking functions, using IT as a competitive tool is set to go

up.Special skills in retail banking, treasury, risk management, foreign exchange,

development banking, etc., will need to be carefully nurtured and built. Thus, the twin

pillars of the banking sector i.e. human resources and IT will have to be strengthened.



(v) Greater Customer Orientation:

In today’s competitive environment, banks will have to strive to attract and retain

customers by introducing innovative products, enhancing the quality of customer service

and marketing a variety of products through diverse channels targeted at specific

customer groups.

(vi) Corporate Governance:

Besides using their strengths and strategic initiatives for creating shareholder value, banks

have to be conscious of their responsibilities towards corporate governance. Following

financial liberalisation, as the ownership of banks gets broadbased, the importance of

institutional and individual shareholders will increase.

In such a scenario, banks will need to put in place a code for corporate governance for

benefiting all stakeholders of a corporate entity.

(vii) International Standards:

Introducing internationally followed best practices and observing universally acceptable

standards and codes is necessary for strengthening the domestic financial architecture.

This includes best practices in the area of corporate governance along with full

transparency in disclosures. In today’s globalised world, focusing on the observance of

standards will help smooth integration with world financial markets.

Chapter-2Gitarattan international business school 19


Organization’s

Profile

Organization’s Profile

Name of organization : Punjab National Bank

Head Office : Bhikaji Cama Place, New Delhi

Origin of the Organization

Established in 1895 at Lahore, undivided India, Punjab National Bank (PNB) has the

distinction of being the first Indian bank to have been started solely with Indian capital.The

bank was nationalised in July 1969 along with 13 other banks. From its modest beginning,

the bank has grown in size and stature to become a front-line banking institution in India at

present.



A professionally managed bank with a successful track record of over

110 years.

Largest branch network in India - 4525 Offices including 432

Extension Counters spread throughout the country.

Strategic business area covers the large Indo-Gangetic belt and the

metropolitan centres.

Ranked as 248th biggest bank in the world by Bankers Almanac ,

London.

Strong correspondent banking relationships with more than 217

international banks of the world.

More than 50 renowned international banks maintain their Rupee

Accounts with PNB.

Well equipped dealing rooms; 20 different foreign currency accounts

are maintained at major centres all over the globe.

Rupee drawing arrangements with M/s UAE Exchange Centre, UAE,

M/s Al Fardan Exchange Co. Doha, Qatar,M/s Bahrain Exchange Co,

Kuwait, M/s Bahrain Finance Co, Bahrain,M/s Thomas Cook Al

Rostamani Exchange Co. Dubai,UAE, and M/s Musandam Exchange,

Ruwi, Sultanate of Oman.

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%.

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. Alongwith 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 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’.

Parameters Mar'07 Mar'08 Mar'09 CRAR

Operating Profit* 3617 4006 5744 26.02

Net Profit* 1540 2049 3091 41.67

Deposit 139860 166457 209760 22.47

Advance 96597 119502 154703 26.55

Total Business 236456 285959 364463 24.15

(Rs. In Crores)

* Respective figure for the corresponding financial year

Departments of The Organization



The bank has following organization

Finance

Personal Administration

Human Source

Sales & Marketing

Retailing

Treasury Management

Information Technology

Product Profile of the Organization

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

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

Savings Accounts

TOTAL FREE DOOM – SAVING FUNDS SALARY ACCOUNT



Purpose: To offer an attractive Saving Fund Account to Corporate Employees for enabling

them to have their Salary Credited as well as availing overdraft facility up to Rs. 15,000/- or

the last salary credited in the account whichever is lower, at our interest rates applicable to

Personal Loans to employees, it would be adjustable in bullet repayment at the time of next

salary credit

ELIGIBILITY: OF THE EMPLOYEE AS WELL AS CORPORATES UNDER TIE-UP

ARRANGEMENT:

The employee whose salary account is being opened should be a permanent employee.

The minimum number of accounts to be opened should be 25 or 75% of the strength of the

permanent employees of the corporate (in that location), whichever is lower.

Initial Deposit and Minimum Balance Requirements : Zero

Service Charges : It will be a ZERO CHARGES ACCOUNT, i.e., the customer would not be

subjected to any charges in respect of any of the services related to this account.

Other facilities offered :

Free Cheque Books for routine requirements (except bulk requirements for loans to be

availed at any other bank- in that case normal cheque book charges would be levied);

Free Statement of Accounts;

Free inter-sol transactions;

Free funds transfer from their accounts within our CBS branches and at 50% discount at non-

CBS branches;

Free issuance of all types of certificates including interest certificate and balance certificate,

etc;

Free of Cost maintenance of Demat Account (we shall be waiving the charges to be earned

by PNB as annual fee, charges payable to NSDL would be recovered from the customers);

50% discount in one locker at the branch convenient to the customer;



Free of Cost PNB Debit/ ATM Card;

PNB-HSBC Credit Cards shall also be got considered by HSBC on priority basis

Eligibility

Accounts can be opened in the name of students who have attained the age of 10 years and above,

studying at VARIOUS RECOGNISED EDUCATIONAL INSTITUTIONS.

Initial Deposit Amount/ QAB/Minimum Balance Required

Zero

Overdraft Facility

The overdraft facility shall be given to students (of reputed educational institutions only) who are

staying away from their parents. It would be made available on the request of the student with the

UNDERTAKING TO PAY/ CONSENT LETTER from earning parents/natural guardian/local

guardian of student. In the first year of opening of account, the facility would be available up-to a

maximum limit of Rs.5,000/-. Subsequent to the satisfactory conduct of the account, in second year

it could be enhanced upto Rs. 10,000/-. Other terms & conditions of this overdraft facility would be

as under:

Rate of Interest The overdraft facility would attract at the rate of interest as applicable to

Personal Loans to the general public.

Age of Student The overdraft facility would be available for the students, having

completed the age of 18 years

Purpose Contingent day to day needs of those students who are staying away from

their parents for the study purposes having got an admission with

recognised and reputed educational institutions.

Repayment For repayment purposes, a single post dated cheque must be obtained from

earning parents/natural guardian/local guardian of student and kept on

record.

Recovery Aspects The overdraft facility must be brought into credit once in 3 months, failing

which recovery process be started. The facility would be recalled and the

student would not be eligible for this overdraft facility at any branch of our

Bank. In any case, this facility should not be allowed to continue when the

student is in the final year of study at that educational institution, i.e.

account has to be got into credit at least six month before the expiry of the

tenure of the study period without any further continuation of overdraft



facility.

Attractive Freebies/Concessions

The following freebies are also admissible:

Demand drafts for all types

of fees/examination fees

Free of cost

Initial Deposit Amount The account will be opened without any initial deposit, i.e., it

Will be Zero Balance Saving Fund Account

Incidental Charges NIL

Ledger Folio Charges NIL

Retail Internet Banking

Services

Free (at CBS branches only)

Intersol transactions

including cash

withdrawal/deposits

Free

ATM Card/DEBIT CARD Free (subject to availability of ATMs in the area)

Cheque Book Facility Free (2 cheque books in a year)

NO-FRILLS SAVING BANK ACCOUNT FOR FINANCIAL

INCLUSION OF OOREST/DESERVING SECTIONS OF SOCIETY

To ensure the financial inclusion of the poorest / deserving sections of the

society, PNB has launched a No-frills Savings Bank Account Scheme known

as PNB ‘MITRA’ SAVINGS BANK ACCOUNT that can be opened by an

INDIVIDUAL singly or jointly, minors of the age of 10 years and above,

minors under natural/legal guardianship. An illiterate or a visually impaired

person is also eligible to open account under the scheme with usual safeguards.

Simplified KYC procedures may be adopted for opening of these accounts.

Product Highlights :

Initial opening of account with just Rs.25/-,



ZERO MINIMUM BALANCE requirement;

Our Bank would allow first 50 transactions in a calendar year Free of

Charge, thereafter a charge of Rs.10/- per transaction would be levied.

Customer would not be allowed to keep balance in this account (taken

together with all other accounts with our Bank) more than Rs.50,000/- in

this account in view of related KYC Norms;.

NO FREE OF COST CHEQUE BOOKS;

PNB SMART ROAMER

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 utilised 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 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) :

i. Free ATM Card;

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

will begin only after launch)

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

branches having connectivity under CBS.

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

no. xii)

v. Free e-mails for statement of account on monthly basis

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

CBS Connectivity

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

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

viii. Immediate credit of outstation cheques upto 15,000/-

ix. 25% concession on Annual Custody Charges for Demat Services

x. 25% concession on service charges for providing EFT Services;

xi. 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.

xii. 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.

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

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


discount on normal charges

Charges on payment of outstation Multicity Cheques, Free

upto





PNB GAURAV– CURRENT ACCOUNT

Features

Quarterly average balance required

Initial Deposit Amount required for opening of the account.

Non-maintenance charges

Free (of transaction charges)

Transactions allowed

Transaction charged/L.F. charges

Inter sol transfer charges –

Local non-base branches

Inter sol transfer charges-

Outstation non-base branches

Outstation/local-cheques/ Bills, etc. collection charges

Free Statement on request.

Statement of Account(e-mail on request)

Remittance charges/Drafts issuing, etc.

Standing Instructions Regn.

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

NSDL)

Rebate on Locker Rent (of any size)

Internet Banking Services

Debit-cum-ATM Card

RTGS Services

Stop Payment Instruction charges

Interest/Balance certificate


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%



A Multi-Option Fixed Deposit Scheme that fit your needs, timing & resources, to match your

convenience

Initial Deposit of Rs.1000/-only, and thereafter in convenient multiples of any amount

of Rupee one

Period of Deposit: (a) Maturity Option: For any period from 15 days to 120 months-

For a single Term Deposit less than Rs. 15 lac and for any period from 7 days to 120

months-For a single Deposit of Rs. 15 lac & above.

(b) Income Option: For any period from 6 months to 120 months.

At PAR Collection of Fixed Deposit Receipt

Payable at par at all CBS branches(premature payment, loans andother miscellaneous

matters before maturity of the FDR shall be attended to only by the issuing branch)

Multiple options available for interest payment viz.

Monthly/Quarterly/Half-Yearly/Yearly or on maturity

For an amount of Rs. 10,000/- and above overdraft with cheque book facility is

available, to enable use of deposits. The customer shall also be at liberty to make use

of the facility through ATM-cum-Debit Card under 'Anywhere-Anytime Banking'. It

will enable customers to have freedom to utilise their Fixed Deposits as and when

needed without even coming to the Bank. The interest is chargeable only for the

amount and period for which the overdraft facility has been availed; The illiterate and

blind persons can also open the account without exercising the option of Overdraft

Facility.

Margin and rate of interest on Loans against deposits under the scheme shall be as per

prescribed guidelines which shall be subject to modifications from time to time

Automatic payment of LOCKER rent out of Interest proceeds

Conversion facility regarding mode of payment of interest allowed;(provided FDR

has been issued for a period of 12 months or more and remaining period of FD is

more than 6 months) without invoking any penal provision

Premature withdrawal of Deposit without any penalty

Automatic Renewal facility is provided as per option exercised by the depositor



Availability of premature extension

Part withdrawal in multiples of Rs.1000/- without loss of interest on remaining FDR

ANUPAM ACCOUNT

Our Bank has several Domestic Deposit Schemes designed to cater to the needs of

various segments of customers to meet your specific requirement.

The features of the Anupam Account Deposit Scheme are as under:

1. Participation

Anupam Account Scheme may be opened in the name of individual(s), sole

proprietorship concern, partnership firm, association, trust, Ltd. Company etc.

However, Anupam Account shall not be opened in the name of a minor, illiterate

and blind persons.

2. Minimum Initial Deposit

Rs.10,000/- and thereafter in multiples of Rs.1000/- thereof.

3. Period of Deposit

For any period from 6 months to 120 months. Existing deposits under Multi Benefit

Deposit Scheme for Rs.10,000/- and above with unexpired term of 6 months or

more are eligible for transfer to Anupam Account Scheme.

4. Overdraft Facility

Overdraft facility shall be permitted through a Current Account and a Cheque Book

will be issued to the depositor on the same day.

The margin on the amount of overdraft against the deposit is

For Public

Maturity Period remaining at the time of granting Margin



overdraft

Upto 2 years 5%

Above 2 years and upto 3 years 7.5%



Above 5 years 25%

5. Third Party Advance

Only depositors can avail overdraft facility against their deposits under this

scheme.

No third party advance ie Credit Facility / overdraft to persons other than depositors

is allowed under Anupam Account. Even the overdraft facility to a proprietorship

firm against Fixed Deposit in the name of its proprietor is not allowed.

6. Premature withdrawal of Deposit

If any depositor desires to withdraw the deposit before maturity, Bank may at its

discretion repay the deposit with upto date quarterly compounded interest at the rate

applicable to the period for which deposit remained with the bank

7. Facility of Further Fixed Deposit in the same Anupam Account

Further, Fixed Deposit can be accepted in the same Anupam Account on your

request and the limit in the overdraft account be increased accordingly against the

additional deposit and it will also be endorsed in the Receipt Form with you.

8. Renewal of Term Deposit on Maturity

Renewal of Fixed Deposit is permitted at your request, if no overdraft is outstanding

against it.

9. Withdrawable in multiples of Rs.1000/-

You may withdraw any amount before maturity anytime as well in multiples of



Rs.1000/- any time according to your convenience without breaking the entire

deposit and also without losing interest on remaining part of Fixed Deposit Receipt

under the Scheme.

MULTI BENEFIT FIXED DEPOSIT SCHEME

It entitles you to earn interest at term deposit rates on quarterly compounding

basis.

You may open with any amount with a minimum deposit of Rs.1000/- for any

period from 6 months to 120 months.

You can avail the additional facility of automatic renewal of fixed deposit with

or without interest on maturity.

On demand, Loan in this MBFD scheme is also made available by us.

Interest at term deposit rates is computable on quarterly

compounded basis

The small monthly savings in the Recurring Deposit scheme

enable you to accumulate a handsome amount on maturity.


Account can be opened with a minimum monthly deposit of

Rs.100/- or its multiples for a period of 6 months to 120 months in

multiples of 3 months.

Interest at term deposit rates is computable on quarterly

compounded basis

The small monthly savings in the Recurring Deposit scheme

enable you to accumulate a handsome amount on maturity.


PNB SWICHA JAMA YOJNA/FLEXI

Individuals can open account, singly or jointly, by a minor of the age of 10 years

and above in his name or through his guardian.

A depositor can choose a monthly installment with a minimum of Rs.100 or

above in its multiples. However, the subsequent monthly installment will not

exceed ten times of such core amount without any ceiling on maximum amount.

No matter, even if the monthly installment is skipped.

Deposit accepted for any period from 6 months to 120 months and interest is paid

at term deposit rates on half yearly basis.

Credit Scheme

Housing Loan

Car Loans

Own a vehicle with the friendliest and most convenient car loan. Either you can

purchase a new Car/ Van/ Jeep or raise loan to purchase old vehicles that are not

older than 3 years. Finance will be provided for purchase of vehicle of

indigenous/ foreign makes.

Individuals as well as Business Concerns (Corporate or non-corporate).

For Individuals: 25 times of the monthly net salary OR Rs.15 lac, whichever is

lower. Income of spouse can be taken into account for determining loan amount.

In such cases, the spouse shall stand as a guarantor.

For Business Conerns: No ceiling on loan amount.

The vehicle purchased with the amount of loan is to be hypothecated to the Bank.

It will be registered in the name of the borrower jointly with the Bank.

Guarantee of spouse, if employed or third party guarantee, OR

Collateral Security in the shape of either Immovable Property or Liquid

Security equivalent to 100% of loan amount



For new Car/ Van/ Jeep: The loan amount together with interest is to be repaid

maximum in 84 Equated Monthly Instalments (EMIs)

For old Car/ Van/ Jeep: The loan amount together with interest is to be repaid

maximum in 60 Equated Monthly Instalments (EMIs)

1% of the loan amount unt, with a maximum of Rs.4,000/-

Rs.300/- upto Rs.2 Lac

Rs.500/- over Rs.2 Lac

The intending borrower will be required to settle the transaction for purchase of

vehicle needed by him/her with the seller and will be required to deposit the

difference of the cost of the vehicle to amount of loan, and thereafter, the advance

will be allowed to him/her from the bank by paying the entire price of the vehicle

to the seller directly on behalf of the borrower

) All permanent Defence Personnel including officials of Military Station

Headquarters, BSF, CRPF, CISF, ITBP

ii) Confirmed/ permanent employees of Central/ State Govt/ PSUs and all reputed

companies/ Institutions, who are drawing their salary through accounts

maintained with our branches.

Employees of above categories under ‘check-off facility’

iii) Professionally qualified Doctors viz. MBBS, BDS & above having annual

income of Rs.4.00 lac & above.

Minimum Net Monthly Income

- Rs.15000 per month for eligible customers at Metro Centres;

- Rs.12500 per month for eligible customers at Urban Centres; and

- Rs.10000 per month for eligible customers at Semi-Urban and Rural Centres.

However, for Teachers, Army Jawans, other permanent employees of Military

Station Headquarters and Para Military Personnel whose salary is being credited

and disbursed through our branches the minimum Net Monthly Income criteria



shall be Rs.7500/- at all Centres viz. Metro, Urban, Semi-Urban and Rural.

Term Loan/ Overdraft – Minimum amount of loan will be Rs.50,000/- and

maximum amount of loan Rs.4,00,000/- or 20 times monthly net salary,

whichever is lower, depending upon the repaying capacity.

Term Loan:

60 Equated Monthly Instalments (EMIs) OR remaining period of service,

whichever is earlier. Instalment to commence one month after disbursement of

loan.

Overdraft:

The overdraft limit shall be adjusted within a maximum period of 60 months by

reducing Drawing Power(DP) equivalent to EMI amount at the beginning of

every month.

However, loan allowed to Army Jawans, other permanent employees of Military

Station Headquarters and Para Military Personnel shall be Repayable in

maximum 36 Equated Monthly Instalments or remaining period of stay at the

particular posting, whichever is lower

In Case of Employees of Govt./Institutions etc.

In case of employees of government/institution etc., irrevocable letter of authority

from the borrower to remit salary/installment and other amount payable to bank.

Post dated cheques towards monthly installments be obtained from the borrower

under the cover of ‘letter of deposit’ (Mandate of the borrower conveying deposit

of PDCs for appropriation in the loan account).

Where the employer agrees to check off facility, at least one PDC to be obtained.

In case of Army Officers :

In case of Army Jawans, Other permanent employees of Military Station

Headquarters and Para Military Personnel (Undertaking to be obtained from the

Station Commandant/ Unit Incharge at the time of retirement/death/transfer of a



particular Jawan/Personnel or on transfer of a unit, loan under the scheme will get

adjusted.)

Professional Loan Schemes

PNB extends assistance to self-employed persons, firms and joint ventures of

such professional persons engaged in professions such as:

Medical practitioners including dentists, chartered accountants, cost accountants,

practicing company secretaries, who are not in regular employment of any

employer, accredited journalists or cameramen who are free lancers, i.e. not

employed by a particular newspaper/magazine, lawyers or solicitors, engineers,

architects, surveyors, construction contractors or management consultants or to a

person trained in any other art or craft who holds either degree or diploma from

any institution established, aided or recognised by Government or to a person

who is considered by the bank as technically qualified or skilled in the field in

which he is engaged. Loans under this scheme may be granted for the purpose of

financing purchase of equipment used by the borrowers, business premises,

construction, making alterations or renovation of business premises/nursing

homes or for working capital requirements, in their professions.

Persons already practicing or new entrants in various professions, having licenses

issued under Central or State Legislations;

Associations of persons engaged in a single profession provided that each

member of such an association is qualified and duly licensed to practice in the

profession; and

The qualified professionals will be required to produce a certified copy of the

license for the record at the bank.

Need based on merits within the overall permissible limits as under:

Metro/ Urban S.Urban/Rural Area



1. Medical practitioners Rs 5.00 lac Rs 10.0 lac

2. Other professionals Rs 5.00 lac Rs 5.00 lac

Margin: Nil up to Rs.25000/-. 25% Above Rs. 25000/-.

Hypothecation/Mortgage of the goods purchased/created with the amount of loan

till the final adjustment of bank's loan and interest thereon.

Collateral security by way of immovable properties or acceptable third party

guarantee in case of advances above Rs. 25000/-.

Term Loan

Loans up to Rs.50000/- 48 months

Loans beyond Rs.50000/- 60 months

Working Capital loans are renewable every year.

Payments will be made direct to the suppliers/ dealers. In case of

construction of the premises, the loan may be disbursed in phases

after verifying the end use in terms of the plan as also at the spot.

The Scheme aims at providing financial assistance to deserving / meritorious students

pursuing higher education in India or abroad. viz., Graduation courses – B.A., B.Com., B.Sc.,

etc., Post-Graduation courses, Masters & Ph.D; Professional courses, Engineering, Medical,

Agriculture, Veterinary, Law, Dental, Management, Computer etc., Computer Certificate

courses of reputed Institutes accredited to Department of Electronics or institutes affiliated to

University; Courses like ICWA, C.A., CFA, etc., courses conducted by IIM, IIT, IISc, XLRI,

NIFT, etc., Regular Diploma/Degree courses conducted by Colleges/Universities approved

by UGC/Govt./AICTE/AIBMS/ICMR, Regular Degree / Diploma courses like Aeronautical,

Pilot training, Shippling etc. approved by DGCA/ etc., Courses offered by National Institutes

and other reputed Private Institutes.

Students should approach the branch nearest to the place of domicile.

Interest is charged monthly on simple basis during the repayment holiday/moratorium period



& concession of 1% in rate of interest is allowed provided the same is serviced regularly

during study period. Punjab National Bank has tied up with Kotak Mahindra Insurance to

provide life insurance cover for Student borrowers.

Need based finance, subject to repaying capacity of the parents / students with margin and the

following ceilings :-

For studies in India: Maximum Rs.10.00 lacs.

For studies abroad: Maximum Rs.20.00 lacs.

Nil.

Above Rs.4.00 lacs: Studies in India 5%

Studies Abroad 15

%

Reimbursement of related expenses such as admission fee, monthly fee,

Boarding and lodging expenses in recognized Boarding Houses etc.

already incurred by way of loan taken from own sources (to meet the

contingency) by the applicant, if claimed within 3 (three) months of such

payment and before consideration of the loan by the Bank.

Second time Education Loan can be sanctioned to the same student

borrower for completion of next higher course

Loan against Mortgage

.

Scheme seeks to provide finance against mortgage of immovable property situated in Metro/

Urban/ Semi Urban centres. The scheme is designed to offer instant solutions relating to

business needs or for personal needs such as, children's higher education, travel, daughter's

marriage, medical emergencies, etc. Loan is, however, not available for speculative purpose.

Eligibility



Employees of Central/ State Govt/ Schools/ Colleges/ Public Sector Undertakings

(PSUs), Reputed Corporates and other intcome tax assesses who are below the age of

60 years

Business Enterprises having a satisfactory track record of

o 3 years of cash profit; and

o Net profit in the immediately preceding financial year

For Individuals

Minimum net monthly salary/ net annual income of Rs.10,000/ Rs.1,20,000/- for

salaried and for other income tax assesses respectively

Net annual income should be double that of total EMIs for the year

For Business Enterprises

Minimum net annual income/ profit of Rs.1,20,000/-

Net income/ profit should be 1.5 times that of total EMIs for the year

Term Loan & Overdraft

Minimum Loan:- Rs. 1 Lac

Maximum Loan:- Rs.100 Lacs

. OBJECTIVE

Offers attractive benefits as part of a Package to those customers who have the capacity and

are willing to avail a minimum specified loan amount under at least two or more specified

Retail Loan Schemes.

2. SCHEME APPLICABILITY

Authorised Branches.

3. ELIGIBILITY



Individuals, including joint owners, who are willing to avail a minimum loan of Rs.5.00 lac

as a package under at least two specified Retail Loan Schemes at a time. One of which

necessarily be for HOUSING and the other may be any one of the following purposes:

Car,

Personal or

Education. At the same time, such individuals/ including joint owners should have adequate

capacity to regularly service such loans.

4. PURPOSE

Finance will be allowed for:

Meeting need based requirement of purchase / construction /addition /

repair/alteration/renovation/furnishing of House/Flat. Loans are also available for purchase of

land/plot for House Building.

Loan on pari passu or second charge basis only to confirmed employees of Central/ State

Government / Public Sector Undertakings (PSUs) maximum upto Rs. 20 lacs. The quantum

of loan be decided taking into account the amount of earlier loan availed and repaying

capacity of the borrower.

Purchase of New Car.

Meeting urgent requirements of personal nature, such as marriage of children, holiday,

foreign travel, family function, medical expenses etc. However, loan will not be granted for

speculation purposes.Education for Self or Children, including the school education of the

child.

5. AMOUNT OF LOAN

For Housing: Need Based - Minimum Rs.2 lac.

Maximum Rs. 50 lacs

For Car : Need Based - Minimum Rs.2 lac.

For Personal Needs: Need Based - Minimum Rs.1 lac Maximum Rs. 2 lacs



For Education: For Studies in India - Minimum Rs.1 lac Max. Rs.5.00 lac

For Studies abroad - Minimum Rs.1 lac Max. Rs.10.00 lac

6. MARGIN

10% except when loan is availed for Personal and or Educational needs in which case it shall

be Nil.

7. RATE OF INTEREST

Housing -

TENOR

For loans repayable

in/upto

Rate of Interest @percent

p.a.

REVISED w.e.f. 01.08.2003

i) Upto 5 years 7.75

ii) Above 5 & upto 10 years 8.25

Car - PTLR presently 11.50%

Personal - 13%

Education - 50 basis points below PTLR viz.11%

8. REPAYMENT

Housing - Maximum 10 years (120 months) in equal Monthly Instalments.

For Car and Personal - Maximum 4 years (48 months) in equal Monthly Instalments.

For Education - Maximum 7 years (84 months) in equal Monthly Instalments.

Obtention of advance cheques (P.D.Cs) signed by the borrowers be ensured towards

repayment of equated monthly instalments alongwith letter of deposit. In case of Housing and

Education Loans minimum 24 advance cheques be obtained at a time. In case of loan of other

purposes cheque for complete repayment period be taken.



No moratorium period for repayment will be allowed and repayment to commence

immediately.

9. MODE OF DISBURSEMENT

As per extant guidelines of specific schemes viz. Housing, Car, Personal and Education.

However, No charges for issue of Demand Draft /Bankers cheques are to be levied.

10. INSURANCE

Comprehensive Insurance Policy to be obtained where loan is allowed for Housing and Car

needs.

11. SECURITY:

Housing

Equitable/ Registered Mortgage of the House/Flat/ Plot Financed.

Obtention of pari passu or second charge over the property mortgaged in favour of other

Lender in situations where senior authorities consider requests and allow loan only to

confirmed employees of Central / State Govts. / Public Sector Undertakings, who have raised

funds for construction / acquisition of accommodation from other sources and need

supplementary finance, for an amount of loan of maximum upto Rs. 20 lacs, which, however,

should be for a minimum of Rs. 2lacs as prescribed above.

Car

Hypothecation of the Vehicle financed.

Equitable mortgage should be for the total amount of loan.

12. GUARANTEE

Suitable guarantee acceptable to the Bank may be obtained which may also include guarantee

from family members/other relatives.



13. UPFRONT & DOCUMENTATION CHARGES

Flat Upfront charges of Rs.2,500/- & no documentation charge.

14. PREPAYMENT PENALTY

In case any of the loan facilities allowed are adjusted within a period of three years,

borrower(s) will be required to pay a prepayment Penalty @ 2% on the amount which had not

become due for payment.

15. GENERAL

The concessional loan facility is available provided the combined availment is Rs. 5 lacs or

more.

Equitable Mortgage of the Immovable Property against which Housing loan has been allowed

will secure the combined loan for two or more purposes.

Equitable Mortgage shall not to be released till final adjustment of all the loans.

Indian Retail Banking continues to redefine the credit growth in the country. It grew by a

whopping 44.4% in 2005-06 to touch Rs3,538 billion. This leap was despite the increase in

risk weight by RBI for housing and real estate loans during August, 2005. Housing, which

constitutes more than 52% of all retail loans, grew at a robust rate of 44.35% during 2005-06.

In order to help banks in India to understand the market and competition and plan future

strategies, we have just come out with an Industry Insight on Indian Retail banking – 2006

edition. This report analyses the retail banking market and its segments in India and presents

the key trends, along with issues and challenges. The report also paints a future outlook for

the market. Besides it profiles 21 major players in the retail banking space and their

strategies.

This report will be of immense use to all banks in India to review and formulate their

strategies in the retail space. It primarily covers analysis of the present status, current trends,

major issues & challenges in the growth of the retail banking sector.



Major points discussed in this report are:

-Global retail banking vis-à-vis Indian scenario

-Indian retail banking overview

-What are the regulatory factors involved in Indian banking industry?

- How interest rate risks, money laundering, and outsourcing are affecting the performance

of banking sector?

- What would be the impact of Basel-II norms in Indian banking industry?

- How the banking industry would combat the competition from upcoming sectors like

mutual funds?

- What are the various issues and challenges before this industry?

With a jump in the Indian economy from a manufacturing sector, that never really took off, to

a nascent service sector, Banking as a whole is undergoing a change. A larger option for the

consumer is getting translated into a larger demand for financial products and customisation

of services is fast becoming the norm than a competitive advantage.

With the Retail banking sector expected to grow at a rate of 30% [Chanda Kochhar, ED,

ICICI Bank] players are focussing more and more on the Retail and are waking up to the

potential of this sector of banking. At the same time, the banking sector as a whole is seeing

structural changes in regulatory frameworks and securitisation and stringent NPA norms

expected to be in place by 2004 means the faster one adapts to these changing dynamics, the

faster is one expected to gain the advantage. In this article, we try to study the reasons behind

the euphemism regarding the Retail-focus of the Indian banks and try to assess how much of

it is worth the attention that it is attracting.

Potential for Retail in India: Is sky the limit?

The Indian players are bullish on the Retail business and this is not totally unfounded. There

are two main reasons behind this. Firstly, it is now undeniable that the face of the Indian

consumer is changing. This is reflected in a change in the urban household income pattern.

The direct fallout of such a change will be the consumption patterns and hence the banking

habits of Indians, which will now be skewed towards Retail products. At the same time, India

compares pretty poorly with the other economies of the world that are now becoming

comparable in terms of spending patterns with the opening up of our economy. For instance,

while the total outstanding Retail loans in Taiwan is around 41% of GDP, the figure in India



stands at less than 5%. The comparison with the West is even more staggering. Another

comparison that is natural when comparing Retail sectors is the use of credit cards. Here also,

the potential lies in the fact that of all the consumer expenditure in India in 2001, less than

1% was through plastic, the corresponding US figure standing at 18%.

But how competitive are the players?

The fact that the statistics reveal a huge potential also brings with it a threat that is true for

any sector of a country that is opening up. Just how competitive are our banks? Is the threat

of getting drubbed by foreign competition real? To analyze this, one needs to get into the

shoes of the foreign banks. In other words, how do they see us? Are we good takeover

targets? Going by international standards, a large portion of the Indian population is simply

not “bankable”

– taking profitability into consideration. On the other hand, the financial services market is

highly over-leveraged in India. Competition is fierce, particularly from local private banks

such as HDFC and ICICI, in the business of home, car and consumer loans. There, precisely

lie the pitfalls of such explosive growth. All banks are targeting the fluffiest segment i.e. the

upwardly mobile urban salaried class. Although the players are spreading their operations

into segments like selfemployed and the semi-urban rich, it is an open secret that the big city

Indian yuppies form the most profitable segment. Over-dependence on this segment is bound

to bring in inflexibility in the business.

What about the foreign giants?

The foreign banks have identified this problem but there are certain systematic risks involved

in operating in the Retail market for them. These include regulatory restrictions that prevent

them from expanding their branch network. So these banks often take the Direct Selling

Agent (DSA) route whereby low-end jobs like sourcing or transaction processing are

outsourced to small regional layers. So now on, when you see a loan mela or a road show

showcasing the retail bouquet of an elite MNC giant, you know that a significant commission

earned out of any such booking gets ploughed back to our own economy. Perhaps, one of the

biggest impediments in foreign players leveraging the Indian markets is the absence of

positive credit bureaus. In the west the risk profile can be easily mapped to things like SSNs

and this information can be publicly traded. PAN is a step in this direction but lot more work

need to be done. What has been a positive step towards this is a negative file sharing started



by a consortium of 11 banks. However, as a McKinsey study points out actual write-offs on

NPAs show a strong negative correlation with sharing of positive information. On top of this,

the spend-now-pay-later “credit culture” in India is just not picking up. A swift legal

procedure against consumers creating bad debt is virtually nonexistent. Finally, the vast

geographical and cultural diversity of the country makes credit policy formulation a tough job

and it simply cannot be dictated from a Wall Street or a Singapore boardroom! All these add

up to the unattractiveness of the Indian retail market to the foreign players. So over the past

few years, in spite of the entry of MNCs in many industries, Retail Banking has seen a flurry

of panicky exits. Fewer than 40 remain in India and their share of total bank assets currently

7.2% is falling. Those that remain might be thought to be likely buyers of Indian banks. Yet

Citibank, HSBC and Standard Chartered—all in India for more than a century, and with

relatively large retail networks—seem to have no pressing need to acquire a local bank.

Established foreign banks have preferred to take over customers or businesses from other

foreign banks that want to leave. Thus HSBC, in recent years, has acquired customers from

France's BNP, Germany's Deutsche Bank and Japan's Bank of Tokyo-Mitsubishi. ABN Amro

took over Bank of America's retail business.

So all for the keeping then?

This will perhaps be the most wrongful inference that can be drawn from the above. We just

cannot afford to look inwards and repeat the mistakes that were the side effects of the

Nationalization of the Banking System. A growing market can never be an alibi for lack of

innovation. Indian banks have shown little or no interest in innovative tailor-made

products.They have often tried to copy process designs that have been tested, albeit

successfully, in the West. Each economic culture has its own traits and one who successfully

adapts those to the business is the eventual winner. A case in point is the successful

implementation of micro-credit networks in Bangladesh. Positioning a bank as a tech-savvy

financial vendor in a country where Internet penetration is an abysmal 1.65% can only add to

the over-leveraging as pointed out earlier. The focus of the sector should remain in

macroeconomic wealth creation and not increasing the per capita indebtedness that will do

little but add to the NPA burden. Retail Banking in India has to be developed in the Indian

way, notwithstanding the long queues in front of the teller counter in the SBI Joka branch!



Chapter-3

Research

Methodology



RESEARCH METHODOLOGY

Research Methodology refers to the method the researchers use in performing research

operations. In other words, all those methods, which are used by the researcher during the

course of studying his research problem, are termed as Research Methods.

RESEARCH DESIGN

A research project conducted scientifically has a specific frame work of research from

problem identification to presentation of research report. This framework of conducting

research is known as Research Design.

A research can be conducted without a research plan but it may not solve the problem. A

research cannot achieve its objectives without proper research design, without design, it

increase its cost and energy.

DESCRIPTIVE RESEARCH DESIGN

Descriptive research includes surveys and facts finding enquiry’s of different finds. The

major purpose of descriptive research is description of the state of affairs as it exists at

present. The main characteristics of this method are that the researcher has no control over

the variable. He can only report what has happened or what is happening. Most are post facts

research projects are used for descriptive studies in which the researcher seeks to measure

such items as for example frequency of shopping, preference of people or similar data. Ex

post facts studies also include attempt by researchers to discover causes even way when they

cannot control the variables. The method of research utilized in descriptive research is survey

method of all kinds, including comparative and correctional methods.

The study is about customer satisfaction regarding services in PNB. It is being made because

Customer satisfaction is the key to the profitability of the banking. It implies the retention of

customers for the long term, which is cheaper than altercating new customers. In current

scenario bank becoming larger the closure of branches and the advent of internet banking, the

question arises whether the customers are satisfied or not.

DATA COLLECTION



PRIMARY DATA with the help of self structured, questionnaire was collected to the address

the research objectives and keeping in tune with the research design.

SECONDARY DATA consisted from “Journals, Magazines, and Books & Websites.”

SAMPLING TECHNIQUE

Sampling is necessary because it is almost impossible to examine the entire parent population

or universe. Various factors such as time available, cost, purpose of study etc. make it

necessary for the researchers to choose a sample. It should neither be too small nor too big.

SAMPLE SIZE

40 Customers.

MODE OF DATA COLLECTION

Questionnaire

Objectives of study

To study the various services offered by PNB

To measure behavior of staff is satisfactory towards customers.

To check out staff co-operation towards customers.

To measure manager co-operation towards customers.



ROLES AND RESPONSIBILITIES

Opening of accounts of customer.

Opening of accounts of students.

Filling the forms of the customers.

Help customers to learn how to fill different types of vouchers.

Receiving the cheques.

Ascertain progress regarding student accounts in various branches.

Deposited the cheques of the customers.

Made transfer entries on the computer.

Entries of the cheques in the computer.

Checking of records in the locker room.

Made reminders for customers so that they can know rather they have paid their rent

for the locker.

Went to schools so that help them to open the student accounts.

Entries of cash vouchers and evaluation of entries of the Fixed deposit from one ledger

to another.

DESCRIPTION OF EXPERIENCES

Uneducated customers were not abling to fill their Forms properly

Due to the lack of the employees’ ledger were not in good condition.

Recording of the data was incomplete and due to which they were not able to clarify

the dues.

But due to the computer the job of the employees is simpler.

Now they have to pass simple entries and all records is maintained easily without any

confusion.

There job is much simpler than before now they can make changes, add, modify at

the same time in a easy manner that is an achievement for bank

I learnt many things in the bank but the most interesting thing I like there is the

Environment of the bank the employees help each other rather they the job of other

or not but they help each other.

Conflicts arise between them because of the lack of the customers they add wrong

information in their cheques or vouchers that cannot be passed.

I learnt many things I have good and bad experiences both over their before I I was



not aware of anything in the bank now I know many things.

I can say that while working over their no employee leaves its work pending for net

day because if they let it pending than they can not end their day and by hook or

crook they have to finish it.

My experience says that working in bank is not as easy as we think because

Managing each and every thing is not easy task.

They have to interact with differ rent types of people so it’s very tough.



Chapter-4

DATA

ANALYSIS

AND

INTERPRETATION



DATA ANALYSIS and INTERPRETATION

TABLE

HOW IS BEHAVIOUR OF STAFF?

OCCUPATION GOOD SATISFA-

CTORY

VERY

GOOD

UNATIS

FACTORY

TOTAL %AGE

SERVICE 6 4 1 2 13 32.5

STUDENT 4 2 1 1 8 20.0

RETIRED 2 0 2 0 4 10.0

BUSINESS 4 2 3 2 11 27.5

HOUSE HOLD 2 1 0 1 4 10.0

TOTAL 18 9 7 6 40 100



TABLE

DO YOU FIND OUT STAFF CO-OPERATVE/COURTEOUS?

OCCUPATION YES NO TOTAL %AGE

SERVICE 5 8 13 32.5

STUDENT 3 5 8 20.0

RETIRED 2 2 4 10.0

BUSINESS 8 3 11 27.5

HOUSE HOLD 2 2 4 10.0

TOTAL 20 20 40 100

yes

no



TABLE

WHETHER FACILITY OF LOCKER IS UPTO THE MARK?


SERVICE 10 3 13 32.5

STUDENT 6 2 8 20.0

RETIRED 3 1 4 10.0



TOTAL 31 9 40 100

yes

no



TABLE

IS MANAGER & STAFF RECEPTIVE TO YOUR PROBLEMS?


SERVICE 9 4 13 32.5

STUDENT 3 5 8 20.0

RETIRED 3 1 4 10.0



TOTAL 24 16 40 100

yes

no



TABLE

HOW MUCH TIME IS TAKEN IN OPENING OF AN ACCOUNT?

OCCUPATION 15

MINUTES

30

MINUTES

1

HOUR

2 HOURS/

MORE

TOTAL %AGE

SERVICE 6 5 2 0 13 32.5

STUDENT 2 4 2 0 8 20.0

RETIRED 2 2 0 0 4 10.0

BUSINESS 5 3 2 1 11 27.5

HOUSE HOLD 3 1 0 0 4 10.0

TOTAL 18 15 6 1 40 100

15 minutes

30 minutes

1 hour

2 hours/more



TABLE

DO YOU WANY TO AVAIL OUR CREDIT FACILITIES?

OCCUPATION PERSONAL

LOAN

CONSUMER

LOAN

OTHERS HOUSING

LOAN

CAR

LOAN

TOTA

L

%AGE

SERVICE 1 1 6 2 3 13 32.5

STUDENT 1 4 1 1 1 8 20.0

RETIRED 4 0 0 0 0 4 10.0

BUSINESS 2 5 0 2 2 11 27.5

HOUSEHOLD 2 0 0 2 0 4 10.0

TOTAL 10 10 7 7 6 40 100

personal loan

consumer loan

others

housing loan

car loan



Chapter-5

FINDINGS AND

CONCLUSIONS



FINDINGS AND CONCLUSIONS

FINDINGS

PNB is having a distribution network of more than 4000 branches. This is the main

strength of the PNB, which cannot be the strength of any other bank.

PNB is the oldest bank from 1895, so it has a strong band image in the market built

over the time & a huge stockpile of the customers under its arms.

The age group of employees is mostly towards at higher side, which is adversely

affecting the productivity, as they do not have any enthusiasm left.

PNB as not much computer savy and works more manually, which restricts its scope

of business.

The process of certain activities of the bank is very much lengthy, as a result of which

now a day’s people prefer to go towards private banks.

The working environment of the bank is not so much healthy and clean as result of

which customers even hesitate to enter the bank.



Conclusions

Bank requires good sitting arrangements for the old generation so that they can get

their work done easily and in a manner and get fully satisfied.

Promotions to the employees should be given and their salary must be increased.

Maximum tax benefit is availed from home loan and minimum from car loan.

Maximum number of borrowers were get influenced by dealer/agent and minimum by

relative. So bank requires introducing new advertisement for loan schemes.

Bank requires to make better arrangements in sitting and standing in the branch.

Bank has to maintain its working environment as result of which customers not even

hesitate to enter the bank.



References



References

Philip Kotler, 2004-2005 Marketing Management, PHI, NewDelhi.

C.R. Kothari, 2001Research Methodology, Wishwa prakashan, New

Delhi.

Indian Journal of Marketing.

Website of PNB.


project report on punjab national bank aakash

Documents

banking industry

days banking

central banking

various services

state bank of india

reserve bank of india

oldest bank

imperial bank of india