N.L.

Dalmia Institute of Management Studies & Research

Analysis of banking products of

A Project Report with its competitors On

PNB

in both

Private and PSU Banks

Internet Banking, Mobile Banking, ATMs, Credit and Debit cards
Under the Guidance of: Prof K.K. Chowdhary
Submitted By:
Heena Maheshwari PGDBM- Marketing

16th July 2010

Analysis of banking products of PNB with its competitors in both Private & PSU Banks

Table of Contents
Table of Contents..........................................................................................2 LETTER OF TRANSMITTAL...............................................................................4

INTRODUCTION.........................................................................5 LITERATURE REVIEW.................................................................9

Growth in Internet Banking..........................................................................10 Types of Internet Banking............................................................................12

MOBILE BANKING....................................................................13 ATMS.....................................................................................15 CREDIT CARD..........................................................................16

TYPES OF CREDIT CARDS ..................................................................................................................16

DEBIT CARDS..........................................................................18
Debit Card Types.........................................................................................18

COMPANY PROFILE: PUNJAB NATIONAL BANK............................20 PRODUCTS & SERVICES OFFERED.............................................24 PEST ANALYSIS.......................................................................26 SWOT ANALYSIS...................................................................... 27
Measures that would help PNB cope its threats and weaknesses...................28

METHODOLOGY (DATA COLLECTION METHOD)...........................29 EXPLORATORY RESEARCH........................................................30

Analysis of banking products of PNB with its competitors in both Private & PSU Banks TO START ON WITH THE DATA ANALYSIS, THE SERIES IN WHICH DATA IS ANALYZED IS .............................................................33 INTERNET BANKING: ...............................................................34
Internet Banking features comparison..........................................................36

MOBILE BANKING:...................................................................42
Services provided for:..................................................................................43

ATMS.....................................................................................45
Comparison with other banks:......................................................................45 Merchant Establishments:............................................................................49

CREDIT CARDS........................................................................51
Total credit cards sold in the market:...........................................................51 Types of cards of the banks in the market:...................................................52 Other Features............................................................................................54

DEBIT CARDS..........................................................................57
Total debit cards sold in the market:............................................................57 No of cards:................................................................................................58 Other Features:...........................................................................................60

SOME IMPORTANT TERMS TO BE KNOWN:.................................64 BIBLIOGRAPHY........................................................................65

Analysis of banking products of PNB with its competitors in both Private & PSU Banks

LETTER OF TRANSMITTAL
Date: 16th July 2010

As per your directions we have completed our research on Analysis of banking products like internet banking, mobile banking etc with its competitors in both Private and Public sector. The sector. report is based majorly on data analysis and little survey work. This project was carried on between 3rd May and 26th June, 2010 .The complete methodology and conclusions derived on the basis of the findings described in the report. We believe you will find the results mentioned in the report to be interesting and certainly useful. I would also like to thank Mr. Dilip Keswani (Officer- Business Development) ,the whole bank staff & my institute guide Prof K. K. Chowdhary for lending their support and guidance in completing this project.

From, Heena Maheshwari

Analysis of banking products of PNB with its competitors in both Private & PSU Banks

Introduction
Banks are the most significant players in the Indian financial market. They are the biggest purveyors of credit, and they also attract most of the savings from the population. Dominated by public sector, the banking industry has so far acted as an efficient partner in the growth and the development of the country. Driven by the socialist ideologies and the welfare state concept, public sector banks have long been the supporters of agriculture and other priority sectors. They act as crucial channels of the government in its efforts to ensure equitable economic development. The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress. The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look anew at their existing portfolio offering. Conservative banking practices allowed Indian banks to be insulated partially from the Asian currency crisis. Indian banks are now quoting al higher valuation when compared to banks in other Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that have major problems linked to huge Non Performing Assets (NPAs) and payment defaults. Co-operative banks are nimble footed in approach and armed with efficient branch networks focus primarily on the high revenue niche retail segments. The Indian banking has finally worked up to the competitive dynamics of the new Indian market and is addressing the relevant issues to take on the multifarious challenges of globalization. Banks that employ IT solutions are perceived to be futuristic and proactive players capable of meeting the multifarious requirements of the large customers base. Private Banks have been fast on the uptake and are reorienting their strategies using the internet as a medium The Internet has emerged as the new and challenging frontier of marketing with the conventional physical world tenets being just as applicable like in any other marketing medium.
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Analysis of banking products of PNB with its competitors in both Private & PSU Banks The Indian banking has come from a long way from being a sleepy business institution to a highly proactive and dynamic entity. This transformation has been largely brought about by the large dose of liberalization and economic reforms that allowed banks to explore new business opportunities rather than generating revenues from conventional streams (i.e. borrowing and lending). The banking in India is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances. Indian nationalized banks (banks owned by the government) continue to be the major lenders in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. The Indian banking can be broadly categorized into nationalized, private banks and specialized banking institutions. The Reserve Bank of India acts as a centralized body monitoring any discrepancies and shortcoming in the system. It is the foremost monitoring body in the Indian financial sector. The nationalized banks (i.e. government-owned banks) continue to dominate the Indian banking arena. Industry estimates indicate that out of 274 commercial banks operating in India, 223 banks are in the public sector and 51 are in the private sector. The private sector bank grid also includes 24 foreign banks that have started their operations here. The liberalize policy of Government of India permitted entry to private sector in the banking, the industry has witnessed the entry of nine new generation private banks. The major differentiating parameter that distinguishes these banks from all the other banks in the Indian banking is the level of service that is offered to the customer. Their focus has always centered on the customer understanding his needs, preempting him and consequently delighting him with various configurations of benefits and a wide portfolio of products and services. These banks have generally been established by promoters of repute or by high value domestic financial institutions. The popularity of these banks can be gauged by the fact that in a short span of time, these banks have gained considerable customer confidence and consequently have shown impressive growth rates. Today, the private banks corner almost four per cent share of the total share of deposits. Most of the banks in this category are concentrated in the highgrowth urban areas in metros (that account for approximately 70% of the total banking business). With efficiency being the major focus, these banks have leveraged on their
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Analysis of banking products of PNB with its competitors in both Private & PSU Banks strengths and competencies viz. Management, operational efficiency and flexibility, superior product positioning and higher employee productivity skills. The private banks with their focused business and service portfolio have a reputation of being niche players in the industry. A strategy that has allowed these banks to concentrate on few reliable high net worth companies and individuals rather than cater to the mass market. These well-chalked out integrates strategy plans have allowed most of these banks to deliver superlative levels of personalized services. With the Reserve Bank of India allowing these banks to operate 70% of their businesses in urban areas, this statutory requirement has translated into lower deposit mobilization costs and higher margins relative to public sector banks.

Analysis of banking products of PNB with its competitors in both Private & PSU Banks

Analysis of banking products of PNB with its competitors in both Private & PSU Banks

Literature review
Internet banking refers to systems that enable bank customers to access accounts and general information on bank products and services through a personal computer (PC) or other intelligent device. Internet banking products and services can include wholesale products for corporate customers as well as retail and fiduciary products for consumers. Ultimately, the products and services obtained through Internet banking may mirror products and services offered through other bank delivery channels. Some examples of wholesale products and services include: Cash management. Wire transfer. Automated clearinghouse (ACH) transactions. Bill presentment and payment. Examples of retail and fiduciary products and services include: Balance inquiry. Funds transfer. Downloading transaction information. Bill presentment and payment. Loan applications. Investment activity. Other value-added services. Other Internet banking services may include providing Internet access as an Internet Service Provider (ISP). The OCC has determined that a national bank subsidiary may provide home
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Analysis of banking products of PNB with its competitors in both Private & PSU Banks banking services through an Internet connection to the banks home banking system and, incidental to that service, may also provide Internet access to bank customers using that service. Historically, banks have used information systems technology to process checks (item processing), drive ATM machines (transaction processing), and produce reports. In the past, the computer systems that made the information systems operate were rarely noticed by customers. Today, Web sites, electronic mail, and electronic bill presentment and payment systems are an important way for banks to reach their customers. National banks have experimented with various forms of online banking for many years. Some of the early experiments involved closed systems where the customers accessed banks through a dial-in or cable TV connection. These systems limited a banks potential customer base because they required out-of area customers to either incur long-distance charges on their phone bills or subscribe to a particular cable TV service to access the bank. With the widespread growth of the Internet, customers can use this technology anywhere in the world to access a banks network. The Internet, as an enabling technology, has made banking products and services available to more customers and eliminated geographic and proprietary systems barriers. With an expanded market, banks also may have opportunities to expand or change their product and service offerings.

Growth in Internet Banking

Numerous factors including competitive cost, customer service, and demographic considerations are motivating banks to evaluate their technology and assess their electronic commerce and Internet banking strategies. Many researchers expect rapid growth in customers using online banking products and services. The challenge for national banks is to make sure the savings from Internet banking technology more than offset the costs and risks associated with conducting business in cyberspace. Marketing strategies will vary as national banks seek to expand their markets and employ lower cost delivery channels. Examiners will need to understand the strategies used and technologies employed on a bank-by-bank basis to assess the risk. Evaluating a banks data on the use of their Web sites, may help examiners determine the bank banks strategic objectives, how well the bank is meeting its Internet banking product plan, and bank whether the business is expected to be profitable. Some of the market factors that may drive a banks strategy include the following: bank
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Analysis of banking products of PNB with its competitors in both Private & PSU Banks

Competition Studies show that competitive pressure is the chief driving force behind increasing use of Internet banking technology, ranking ahead of cost reduction and revenue enhancement, in second and third place respectively. Banks see Internet banking as a way to keep existing customers and attract new ones to the bank.

Cost Efficiencies National banks can deliver banking services on the Internet at transaction costs far lower than traditional brick-and-mortar branches. The actual costs to execute a transaction will vary depending on the delivery channel used. For example, according to Booz, Allen & Hamilton, as of mid- 1999, the cost to deliver manual transactions at a branch was typically more than a dollar, ATM and call center transactions cost about 25 cents, and Internet transactions cost about a penny. These costs are expected to continue to decline.

National banks have significant reasons to develop the technologies that will help them deliver banking products and services by the most cost-effective channels. Many bankers believe that shifting only a small portion of the estimated 19-billion payments mailed annually in the U.S. to electronic delivery channels could save banks and other businesses substantial sums of money. However, national banks should use care in making product decisions. Management should include in their decision making the development and ongoing costs associated with a new product or service, including the technology, marketing, maintenance, and customer support functions. This will help management exercise due diligence, make more informed decisions, and measure the success of their business venture.

Geographical Reach Internet banking allows expanded customer contact through increased geographical reach and lower cost delivery channels. In fact some banks are doing business exclusively via the Internet they do not have traditional banking offices and only reach their customers online. Other financial institutions are using the Internet as an alternative delivery channel to reach existing customers and attract new customers.

Branding Relationship building is a strategic priority for many national banks. Internet banking technology and products can provide a means for national banks to
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Analysis of banking products of PNB with its competitors in both Private & PSU Banks develop and maintain an ongoing relationship with their customers by offering easy access to a broad array of products and services. By capitalizing on brand identification and by providing a broad array of financial services, banks hope to build customer loyalty, cross-sell, and enhance repeat business.

Customer Demographics Internet banking allows national banks to offer a wide array of options to their banking customers. Some customers will rely on traditional branches to conduct their banking business. For many, this is the most comfortable way for them to transact their banking business. Those customers place a premium on personto-person contact. Other customers are early adopters of new technologies that arrive in the marketplace. These customers were the first to obtain PCs and the first to employ them in conducting their banking business. The demographics of banking customers will continue to change. The challenge to national banks is to understand their customer base and find the right mix of delivery channels to deliver products and services profitably to their various market segments.

Types of Internet Banking

Understanding the various types of Internet banking products will help examiners assess the risks involved. Currently, the following three basic kinds of Internet banking are being employed in the marketplace:
Informational this is the basic level of Internet banking. Typically, the bank has

marketing information about the banks products and services on a stand-alone server. bank The risk is relatively low, as informational systems typically have no path between the server and the banks internal network. This level of Internet banking can be provided by bank the bank or outsourced. While the risk to a bank is relatively low, the server or Web site may be vulnerable to alteration. Appropriate controls therefore must be in place to prevent unauthorized alterations to the banks server or Web site. bank
Communicative this type of Internet banking system allows some interaction

between the banks systems and the customer. The interaction may be limited to bank electronic mail; account inquiry, loan applications, or static file updates (name and
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Analysis of banking products of PNB with its competitors in both Private & PSU Banks address changes). Because these servers may have a path to the banks internal networks, bank the risk is higher with this configuration than with informational systems. Appropriate controls need to be in place to prevent, monitor, and alert management of any unauthorized attempt to access the banks internal Banking networks and computer bank systems. Virus controls also become much more critical in this environment.
Transactional This level of Internet banking allows customers to execute

transactions. Since a path typically exists between the server and the banks or bank outsourcers internal network, this is the highest risk architecture and must have the outsourcer strongest controls. Customer transactions can include accessing accounts, paying bills, transferring funds, etc.

Mobile Banking
Mobile banking is a way for the customer to perform banking actions on his or her cell phone or other mobile device. It is a quite popular method of banking that fits in well with a busy, technologically oriented lifestyle. It might also be referred to as M-banking or SMS banking. M-banking banking. The amount of banking you are able to do on your cell phone varies depending on the banking institution you use. Some banks offer only the option of text alerts, which are messages sent to alerts, your cell phone that alert you to activity on your account such as deposits, withdrawals, and ATM or credit card use. This is the most basic type of mobile banking. banking. A more involved type of mobile banking allows the user to log into his or her account from a cell phone, and then use the phone to make payments, check balances, transfer money between accounts, notify the bank of a lost or stolen credit card, stop payment on a check, receive a new PIN, or view a monthly statement, among other transactions. This type of banking is meant to be more convenient for the consumer than having to physically go into a bank, log on from their
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Analysis of banking products of PNB with its competitors in both Private & PSU Banks home computer, or make a phone call. While all of this is true, some are concerned about the security of mobile banking. Most experts advise against performing any large transactions over mobile banking, which is good advice. However, it is equally important to use an alphanumeric password and to keep your PIN safe. Change your password often, and do not use your pets' names, your child's name, or any birthdays. This advice applies to all passwords, not just those used for mobile banking. Though you are logging on to a secure server at the bank through your cell phone, you need to do your part to protect your information. For this reason, many banks are now sending one-time use passwords for an extra step in security. A one-time use password might be sent to a cell phone or other device when you wish to log into your account. You will then usually need to enter both the password you have already set, along with the one-time use password, within a certain period of time. The one-time use password expires, naturally, after it is used once or after a time limit has passed. Using two passwords increases the security of the account, an important concern with mobile banking.

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Analysis of banking products of PNB with its competitors in both Private & PSU Banks

ATMs
Automated Teller Machine is a computerized machine that provides the customers of banks the facility of accessing their accounts for drawing cash and to carry out other financial transactions without the need of actually visiting a bank branch. ATM cards/debit cards, credit cards and prepaid cards (that permit cash withdrawal) can be used at ATMs for various transactions. In addition to cash dispensing, ATMs have following services/facilities: Balance Enquiry Cash Deposit Funds Transfer Prepaid Mobile Recharge Mini/Short Statement
PIN Change etc.

The services offered may vary from bank to bank, or may depend on the capacity of the machine at the ATM outlet to provide such services.

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Analysis of banking products of PNB with its competitors in both Private & PSU Banks

Credit card
Credit card is given by the banker to the customers in which the name of the customer is embossed in blocks letters, the name of the bank of issues and expiry are also mentioned on the field the reverse side of the card will bear the specimen signature of the customers. A list of vendors or sellers will be given by the banker to the customers.

TYPES OF CREDIT CARDS

Charge card o In this card, the cardholder has to make full payment of the charge by the due date. Unlike other credit cards, here dues are not allowed to carry forward.

Affinity card
o

A card offered by two organizations of which one is a lending institution and the other a non financial group. Here schools, nonprofit groups, airlines, petroleum companies issue affinity cards. These cards carry special discounts.

Standard card o It is a normal credit card which carries limit on transactions, according to the credit worthiness of the card holder.

Classis card. o A credit card issued by visa, carrying the logo of visa.

Gold card

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Analysis of banking products of PNB with its competitors in both Private & PSU Banks
o

A credit card that offers a higher line of credit than a standard card. Income eligibility is also higher. In addition, issuers provide extra perks or incentives to cardholder.

Platinum card o A credit card with a higher limit and additional perks than a gold card. Titanium card
o

A card with an even higher limit than a platinum card.

Secured card o A credit card is given to a card holder who has savings deposit which will take care of his outstanding balance, in case of his default on payment. Smart card
o

Smart cards, sometimes called chip[ cards, contains a computer chip embedded in the plastic where a typical credit card's magnetic strip can hold only a few dozen characters, strip can hold only a few dozen characters, smarty cards are now available with 16k of memory. When read buy a special terminals, the cards can perform a number of functions or access data stored in the chip. These cards can be used as cash cards or as credit cards with a present credit limit, or used as ID cards with stored in passwords.

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Analysis of banking products of PNB with its competitors in both Private & PSU Banks

Debit cards
A debit card (also known as a bank card or check card) is a plastic card that provides an card) alternative payment method to cash when making purchases. Functionally, it can be called an electronic cheque, as the funds are withdrawn directly from either the bank account, or from the account, remaining balance on the card. In some cases, the cards are designed exclusively for use on the Internet, and so there is no physical card. Debit cards may also allow for instant withdrawal of cash, acting as the ATM card for withdrawing cash and as a cheque guarantee card. Merchants card. may also offer cash back facilities to customers, where a customer can withdraw cash along with their purchase.

Debit Card Types

There are two types of debit card categories. These are the virtual debit cards and the physical debit cards. A wide range of debit card products are offered under these categories. These cards are provided with a number of features. Virtual Debit Cards These cards have been designed as a measure to check the fraudulent activities that are done through the Internet. There are a number of virtual credit cards offered by the companies. Some of these cards are as follows:

Gift Cards Payroll Cards Merchant Cards Incentive Cards Student Cards

Services Offered by Different Types of Virtual Debit Cards

Payments Through Internet SMS Transfers Offline Payments

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Analysis of banking products of PNB with its competitors in both Private & PSU Banks

Money Transfer Depository Services

Physical Debit Cards These cards are similar to other plastic cards but the main difference is that the cardholders should put the money in the card account before using the card. Different types of Physical Debit Cards are provided by the card companies. Some of these are the following: Re-Loadable Debit Cards: There are a number of cards that are provided as Re-Loadable Debit Cards. These are Payment Cards, Merchant Cards, Student Cards, Payroll Cards, and Government Payment Cards and so on Disposable Debit Cards: Some of these cards are Incentive Cards, Gift Cards and so on. Services Offered by Physical Debit Cards ATM Services Money Transfer Services Online/Offline Payments Depository Services POS Terminals

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Analysis of banking products of PNB with its competitors in both Private & PSU Banks

Company profile: Punjab National Bank

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

MISSION
"Banking for the unbanked"
With over 56 million satisfied customers and 5002 offices, PNB has continued to retain its leadership position amongst 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
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Analysis of banking products of PNB with its competitors in both Private & PSU Banks 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 2010 amounted to Rs 435931 crore. Today, with assets of more than Rs 2,96,633 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 (5002 offices including 5 overseas branches ).During the FY 2009-10, with 40.85% share of CASA deposits, the bank achieved a net profit of Rs 3905 crore. Bank has a strong capital base with capital adequacy ratio of 14.16% as on Mar10 as per Basel II with Tier I and Tier II capital ratio at 9.15% and 5.01% respectively. As on March10, the Bank has the Gross and Net NPA ratio of 1.71% and 0.53% respectively. During the FY 2009-10, its ratio of Priority Sector Credit to Adjusted Net Bank Credit at 40.5% & Agriculture Credit to Adjusted Net Bank Credit at 19.7% was also higher than the stipulated requirement of 40% & 18%. The Bank has maintained its stake holders interest by posting an improved NIM of 3.57% in Mar10 (3.52% Mar09) and a Return on Assets of 1.44% (1.39% Mar09). The Earning per Share improved to Rs 123.98 (Rs 98.03 Mar09) while the Book value per share improved to Rs 514.77 (Rs 416.74 Mar09) Punjab National Bank continues to maintain its frontline position in the Indian banking industry. In particular, the bank has retained its NUMBER ONE position among the nationalized banks in terms of number of branches, Deposit, Advances, total Business, Assets, Operating and Net profit in the year 2009-10. The impressive operational and financial performance has been brought about by Banks focus on customer based business with thrust on CASA deposits, Retail, SME & Agri Advances and with more inclusive approach to banking; better asset liability management; improved margin management, thrust on recovery and increased efficiency in core operations of the Bank. The performance highlights of the bank in terms of business and profit are shown below:
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Analysis of banking products of PNB with its competitors in both Private & PSU Banks Parameters Operating Profit Net Profit Deposit Advance Total Business Mar'08 4006 2049 Mar'09 5744 3091 Mar'10 7326 3905 249330 186601 435931 CAGR (%) 22.29 23.98 14.42 16.01 15.09

166457 209760 119502 154703 285959 364463

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. All branches of the Bank are under Core Banking Solution (CBS) since Dec08, thus covering 100% of its business and providing Anytime Anywhere banking facility to all customers including customers of more than 3000 rural & semi urban 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 350 ATMs has the largest ATM network amongst Nationalized 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 its policy of inclusive growth in the IndoGangetic belt, the Banks 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 Bank has started several innovative initiatives for marginal groups like rickshaw pullers, vegetable vendors, dairy farmers, construction workers, etc. Under Branchless Banking model, the Bank is implementing 40 projects in 16 States. The Bank launched an ambitious Project Namaskar under which 1 lakh touch points will be established in unbanked villages by 2013 to extend the Banks outreach. Under this, 30 Kiosks have been opened covering 119 Villages reaching 1.32 Lakh beneficiaries. Backed by strong domestic performance, the bank is planning to realize its global aspirations.

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Analysis of banking products of PNB with its competitors in both Private & PSU Banks Bank continues its selective foray in international markets with presence in 9 countries, with branches at Kabul and Dubai, Hong Kong & representative offices at Almaty, Dubai, Shanghai and Oslo, a wholly owned subsidiary in UK, a joint venture with Everest Bank Ltd. Nepal and a JV banking subsidiary DRUK PNB Bank Ltd. in Bhutan. Bank is pursuing up gradation of its representative offices in China & Norway and is in the process of setting up a representative office in Sydney, Australia and taking controlling stake in JSC Dana Bank in Kazakhastan. Bank has been a recipient of many awards and accolades during the year: Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance 2009 by Standing Conference of Public Enterprises As per Financial Express-Ernest & young (FE-EY) Indias Best Banks Survey, PNB is identified as the best bank among the nationalized banks in terms of overall ranking.
As per HT-Mars Survey on Customer Satisfaction, PNB stood NUMBER ONE in Delhi

and Chennai in terms of customer satisfaction. As per the Forbes Annual list of 2000 global giants, PNB tops the list of nationalized banks with a global ranking of 695, substantial improvement over last years placement at 946th position. The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of 2010. Skoch Challenge Award 2010 for Livelihood Linkage of the milk producers in Bulandshahr District, Uttar Pradesh. IDC Financial Insights Innovation awards 2010 by IDC Financial Insights

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Analysis of banking products of PNB with its competitors in both Private & PSU Banks

Products & Services offered

Savings Fund Account

Total Freedom Salary Account, PNB Prudent Sweep, PNB Vidyarthi SF Account, PNB Mitra SF

Account Current Account

PNB Vaibhav, PNB Gaurav, PNB Smart Roamer

Fixed Deposit Schemes

Spectrum Fixed Deposit Scheme, Anupam Account, Mahabachat Schemes, Multi Benefit Deposit

Scheme Credit Schemes

Flexible Housing Loan, Car Finance, Personal Loan, Credit Cards

Social Banking

Mahila Udyam Nidhi Scheme, Krishi

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Analysis of banking products of PNB with its competitors in both Private & PSU Banks Card, PNB Farmers Welfare Trust

Corporate Banking

Gold Card scheme for exporters, EXIM finance

Business Sector

PNB Karigar credit card, PNB Kushal Udhami, PNB Pragati Udhami, PNB Vikas Udhami

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Analysis of banking products of PNB with its competitors in both Private & PSU Banks

PEST ANALYSIS

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Analysis of banking products of PNB with its competitors in both Private & PSU Banks

SWOT Analysis

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Analysis of banking products of PNB with its competitors in both Private & PSU Banks

Measures that would help PNB cope its threats and weaknesses

Scope of the study

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Analysis of banking products of PNB with its competitors in both Private & PSU Banks As current market place is highly competitive and each corporate is expanding its business round the globe for its global presence so they do study related to market trend regarding to their market share in comparison to their competitors. This study is carried out to compare the products of Punjab National Bank with its competitors in Private as well as Public sector.

Significance of the study This study is helpful to find out the strengths and the weakness of their products and mobilization schemes of bank and how to overcome its weakness. This study provides useful inputs to find out the current position of Punjab National Bank in comparison to its competitors.

Objectives of Study The objectives of undergoing study are as follows; 1. Study and analyze the market share of financial products of different banks. 2. Possible improvements to be brought in for the development of their future business.

METHODOLOGY (data collection method)

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Analysis of banking products of PNB with its competitors in both Private & PSU Banks For the exploratory research, the data is collected: By secondary data analysis For the Primary research, the data is collected in: By conducting personal interviews of the PNB customers and non-pnb customers

Exploratory Research
We have conducted the exploratory research, using the survey method and have also done the secondary data analysis
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Analysis of banking products of PNB with its competitors in both Private & PSU Banks Purpose of Exploratory Survey:
i)

To identify factors influencing the customers to chose PNB as their bank

ii) Identify competitors in Indian markets.

Research Methods: i) Experience Surveys: The Target Groups identified for this survey are:
a) Individuals having bank accounts in PNB(Age: 19 60 years)

Sample Size: 10
b) Non- PNB customers (Age: 19 60 years)

Sample Size: 10 The questions asked were open-ended questions to gauge the range of responses possible and also to tap what comes first to the minds of the people when asked a particular question.

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Analysis of banking products of PNB with its competitors in both Private & PSU Banks

Data Analysis
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Analysis of banking products of PNB with its competitors in both Private & PSU Banks

To start on with the data analysis, the series in which data is analyzed is
Internet Banking Mobile Banking ATMs Point of Sale establishments Credit cards Debit cards

We have analyzed the data by taking 8 banks into consideration which are as follows: Type of banks Number of banks Banks Punjab National Bank State Bank of India Axis Bank Bank of Baroda HDFC bank ICICI bank Standard Chartered Bank Citibank Public 4 Private 2 Foreign 2

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Analysis of banking products of PNB with its competitors in both Private & PSU Banks

Internet Banking:
Punjab National Bank of India is also a member of SWIFT and more than 150 PNB Branches are connected with terminals in Mumbai. It promotes "Any Time, Any Where Banking". PNB offers Internet Banking services for both to the Corporate and Individuals. It provides 24 hours, 365 days banking from the PC of the user. A user can operate anytime and from anywhere its accounts. The following are some of the services available online:

Access to account Complete details of transactions and statement of account Online information of deposits, loans overdraft account etc. Online Payment Facility for railway reservation through IRCTC Payment Gateway Project Online Utility Bill Payment Services which allows Internet Banking account holders to pay their telephone, mobile, electricity, insurance and other bills anytime from anywhere from their desktop.

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Analysis of banking products of PNB with its competitors in both Private & PSU Banks In order to avail internet banking, the consumers have to agree to certain conditions to use the internet banking facility continuously without any problems. The most important condition of all is the software which has to be availed by the consumer for himself which is given below:
Softwareapp licatio u d fo u ns se r sing Inte e b rn t anking PN B SBI Axis BOB H D FC Internet Explorer 5.5 or above Microsoft Internet Explorer 7 and above or Mozilla 3 and above Internet explorer Ver. 5.5 & above Internet explorer Ver. 5.0 Internet Explorer Version 5.5 and above Netscape Navigator Version 4.7 and above. IC IC I Internet Explorer Ver. 5.5 and Ver. 6 or Firefox Ver. 1.5 with a resolution of 1024x768. Stan dard C harte d Minimum software required to access re internet C itib ank Any browser Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes RTG S N EFT

The Bank requirements for software in order to let the consumers use internet banking differs as per their technology usage. The foreign banks dont find any problems as far as technology is concerned whereas nationalized banks require particular software for the consumers to use their internet banking services.

35

Analysis of banking products of PNB with its competitors in both Private & PSU Banks

Internet Banking features comparison

Now to understand the differences between the services being offered in internet banking by various banks in India, the table explains the features: Accounts transfer: Accounts Account transfer s
Online stateme nts of account s Chec k your Balan ce See your Statem ent Inquir e about chequ e statu s Ask for a Statem ent Ask for a Cheq ue Book Other additio nal service s

informat ion

PNB SBI Axis BOB HDFC ICICI Standa rd Charter ed Citiban k

Funds & Payments Funds & Payments

Transfe r funds within your own account s Transfer funds to third party accounts Pay credit card bills Transfer funds to religious and Charitable institutions Pay taxes Online Pay your Utility Bills

PNB SBI Axis BOB

36

Analysis of banking products of PNB with its competitors in both Private & PSU Banks
HDFC ICICI Standard Chartere d Citibank

Credit cards services

View Credit card accou nt summ ary View & downlo ad Credit Card statem ent Rede em Rewa rd Point s Requ est an addon card.

Credit card services

PNB SBI Axis BOB HDFC ICICI Standa rd Charte red Citiban Citiban k

Credit Cards Paym ent

Paym ent Due Dates

Credit Card Stateme nts by e-mail

Subscr ibe for Credit Card alerts.

Duplic ate PIN

Online applications: Online requests/ application s

Onlin e shar e tradi ng Book VA ticke T ts onlin e As k for a DD Requ est for a new Fixed Depo sit Statem ent Reques t Requ est cheq ue books . Order for lost /misplac ed stateme nts Loan requ est onlin e Requ est for your APIN, TPIN & balan

37

Analysis of banking products of PNB with its competitors in both Private & PSU Banks
ce transf er

PNB SBI Axis BOB HDFC ICICI Standard Chartere d Citibank

Also as per the analysis, the survey was carried out to analyze the banks on the basis of the features provided by various banks. 1 Level (0) Informational
1. General

Total Score

Bank

info. info.

& 9

8 9 7 6 9

8 8 8 8 7

8 8 7 6 6

9 8 7 8 7. 5

9 7 8 8 7

8 8 7 8 8

8 7 7 8 8

8.4 7.8 7.2 7.4 7.6

History 2. Financial Educational 7 Info. 3. Employment Info. 6 4. Interest 5. Financial Calculator Level (1) Administrative 6. Accounts info. Access 7. Application for services Level (2) Transactional 8. Account Capabilities Transfer 7 9 7 7 8

8 8

8 8

8 9

8 7

8 6

8 7

8 7

8.2 7.4

7.

7.6
38

Analysis of banking products of PNB with its competitors in both Private & PSU Banks 5 9. Bill-Pay Services 10. 11. Corporate Services Online Insurance 8 8 7 6 6 9 9 9 6 8 6 7 8 7 7. 5 6 9 7 7 7 6 9 8 7 7 5 7 7 6 6 7 7 8 5 7 7 8 8 5 8 6.7 8 7.8 6.2 7.1

12. Insurance Brokerage 13. Online Trust Level (3) Portal

14. Links to Financial 10 Info. 15. Links to 9 Community Info. 16. Links Business Level (4) Others 17. to Local 8

10 8 8

8 7 7

8 6 6

9 7 8

8 6. 5 7

8 7 7

8 7 7

7.6 6.8 6.3

Search Function

10 10

7 -

8 -

9 -

9 9

9 -

9 -

7.5 3.6

18. Provide Hindi 9 Language Facilities Overall Score Presence Percentage (%) Ranking Average of Presence (%) Add-ons????? Ease/Difficulty Website 1-10 to 7. 6 95 3 85 7 access 7 6

8. 4 98 1 92 8 9 8 10

7. 1 91 5 78 6 8 7 8

6. 9 89 6 76 59 9 9

7. 7 96 2 88 9 9 8 9

7. 6 95 3 85 8 8 9 9

7. 5 94 4 82 7 8 6 7

7. 5 94 4 82 7 8 8 9
39

Aesthetics of Website 1-10

Ease to Read & Understand 1- 9

Analysis of banking products of PNB with its competitors in both Private & PSU Banks 10

From the above analysis it gives us a fair conclusion of PNB is third as compared to the other banks in the services provided to the consumers in terms of internet banking. It has all the facilities but needs to come up with more awareness of its service usage through internet. The general history and information about the bank is being well explained by PNB on the site whereas the financial information given by the other banks is more understandable as compared to PNB. It also lacks the appropriate links for the employment of new candidates that is it cannot be easily seen on the site as compared to other banks which has given a separate link for the employment or recruitment section on the main page of the site. The main site of the bank cannot be properly loaded on other web browser except internet explorer which may be a problem for the users of other browsers like Mozilla Firefox, Google Chrome etc. It provides the calculator facility which is being provided by at least every bank which helps the consumers to find out the EMI on the loan taken by them etc. it is also seen that the facilities provided by PNB like bill payments, tax payments, giving donations, balance transfers, corporate services etc are being well provided by the bank and is on par wi9th the other banks. The portal is linked to all the essential information such as financial information, community information, local and non-local businesses. Wireless capabilities, search functions are found on the webpage. The site is very user friendly in terms of language change as it provides a facility of language change from English to Hindi, which helps the consumers who are less educated or who are not well versed in reading English.

40

Analysis of banking products of PNB with its competitors in both Private & PSU Banks The internet banking facility provided by PNB is overall good as compared to the other banks but requires a few changes in terms of its looks and ease in complexities which would attract the consumers to use more and more internet banking. The aesthetics of the webpage are not very pleasing.

41

Analysis of banking products of PNB with its competitors in both Private & PSU Banks

Mobile Banking:
Mobile banking in PNB is a product which was recently introduced on 12th Feb, 2010. Being a newly launched product it has covered a lot of points which are very beneficial to the corporates or individuals of service class. PNB Mobile Banking would enable PNB customers in accessing banking services anytime/anywhere on-the-move through mobile phones. It is compatible with popular mobile devices across most GSM & CDMA operators with easy to operate features. The Mobile Banking Services are being offered in line with the guidelines of the Reserve Bank of India. PNB Mobile Banking offers services like checking account balances, transfer of funds, stop-payment of cheques, request for a cheque book and many more add-ons features. Comparing the mobile banking services of PNB with other banks. It has all the basic amenities of mobile banking but since it is at its infant stage, it requires a lot of improvements. When the services are being compared to the banks, we have compared it on the basis of three parameters 1. Services provided for bank accounts 2. Services provided for credit cards 3. Other services

42

Analysis of banking products of PNB with its competitors in both Private & PSU Banks

Services provided for:

Bank Accoun t
PNB SBI Axis BOB HDFC ICICI Standar d charter ed Citibank Funds Transfe r Bill Payme nt Balan ce Enqui ry Last 5 payme nt Chequ e Book Reque st Stop Chequ e Reque st Chequ e Statu s Enqui ry Changing Login and Transacti on Passwor d Third Party Transf er of funds Ne w Ipin

On comparing the banks we get to know that PNB has all sorts of individual/ corporate facility of keeping a track of the account, balance enquiry, checque book etc. Some of the banks do not have these services, which is giving an edge to the bank. It shows that the bank is very particular about its conusmers getting the major accounting facilities. It also shows the professional attitude of the bank which is very particular about its consumers which majorly belong to the middle income group section.
Credit card

Balance Details

PNB SBI Axis BOB HDFC ICICI Standard chartered Citibank

Last Payment Details

Payment Due Date

43

Analysis of banking products of PNB with its competitors in both Private & PSU Banks The major features that a conusmer would like to know when he swaps his credit card is how much he has used and what he has paid to cover his dues and when he has paid the dues. Here PNB lacks in this segment, being an infant it has not yet covered the credit card and other sections. Whereas the other banks like the private sector banks HDFC, ICICI and the foreign banks like Standard chartered bank and Citibank have all these facilities to cater its target audience.
Movie ticket booki ng Prepai d Mobile Rechar ge Locat e Bran ch Locate ATM Phone Banki ng Numb er Apply for Bank Products Status of Service Request Raised

Other services
PNB SBI Axis BOB HDFC ICICI Standard chartered Citibank

Coming on to the other services, PNB lacks in this section completely. The reason being the same, since it is newly launched, it would take some time to come at par with the other banks. All these facilities are more for youngsters or the new employees who like to do things faster which helps them to save both time and energy and also it gives them a lot of facilities. This section too is being well established by other banks making more space in their pockets for the new consumers.

44

Analysis of banking products of PNB with its competitors in both Private & PSU Banks

ATMs
Punjab National Bank ATMs are one of the ATMs which are used by a large number of people because the ATMs are located in all the major cities of India. The Punjab National Bank ATMs are located in Delhi, Kolkata, Chennai, Mumbai, Bangalore, Hyderabad, Pune, Gurgaon, Uttar Pradesh as well as Ghaziabad. The Punjab National Bank ATMs are one of the well equipped ATMs thereby it has become extremely easier for the people to withdraw cash. It is also easier to operate the Punjab National Bank ATMs as well. The Punjab National Bank ATMs are known for the large number of facilities that it offers to its customers. The Punjab National Bank ATMs are opened all the year round on a 24X7 basis. The ATMs are not closed even on the holidays. Thus you can access your account as and when you require it. Cash withdrawals have been thus made extremely easier because of this. The Punjab National Bank ATMs are located at all the important parts of the cities such as near the hospital, market places, major offices and others. Thus, you will not have to carry hard cash with you whenever you go out. Thus it has extremely safe as well. Both the credit cards as well as the debit cards offered by the Punjab national bank can be used in any of the Punjab National Bank ATMs. They can be used in other ATMs as well. The banks have made up such tie ups with other banks in order to provide the best facilities to the customers. The Punjab National Bank ATMs you can also deposit the cheques. The Punjab National Bank ATMs are one of the best in terms of security. So your cheques will be properly deposited. When you withdraw cash from the Punjab National Bank ATMs, do not forget to collect the card, money as well as the mini statement they offer. This will help you keep a track of your transactions. Once you visit the Punjab National Bank ATMs, you will be able to know more about the limits of cash that you can withdraw from the ATM at one go. Thus withdrawing cash has become extremely easier with the Punjab National Bank ATMs.

Comparison with other banks:

No of ATMs
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Analysis of banking products of PNB with its competitors in both Private & PSU Banks

SBI is the largest ATM provider which owns 16,294 ATMs all over India. This number excludes the group ATMs. As compared to the other banks PNB has less number of ATMs which means that it needs to widen its spread of ATMs inorder to make it comfortable for the consumers so that they can use the services in the PNB ATMs itself.

Common Features:
Balance Inquiry Cash Withdra wals PIN chan ge Mini Statem ent Credit card payment Pay utility bills Cheq ue depo 46 Orde r cheq

Analysis of banking products of PNB with its competitors in both Private & PSU Banks
ue book

sit SBI PNB Axis BOB HDFC ICICI Standar d Charter ed Citibank

Uncommon Features
Money transf Recha er rge betwe mobile en phone linked s accoun ts

Mutual fund payme nt

Insuran ce premiu m

Pay donati ons

Inter net packs

Flexi topups

Make payme nt for purcha ses

SBI PNB Axis BOB HDFC ICICI Standar Standar d Charter ed Citibank

We see that PNB provides the basic services of ATMs as compared to other banks, especially ICICI and Standard Chartered Bank who have provided variety of services through ATMs. They
47

Analysis of banking products of PNB with its competitors in both Private & PSU Banks have not yet entered the advanced stage of the ATMs where the other banks are providing more advanced services giving an edge to their services.

48

Analysis of banking products of PNB with its competitors in both Private & PSU Banks

Merchant Establishments:
To use smart cards/debit cards/credit cards for the purchase of an item or for payment of a service at a merchant's store, the card has to be swiped in a terminal (known as Point of Sale or POS terminal) kept at the merchant's store. As soon as the card is put on the terminal, the details of the card are transmitted through dial-up or leased lines to a host computer. On verification of the genuineness of the card, the transaction is authorised and concluded. It is thus a means to 'check out' whether the cardholder is authorized to make a transaction using the card. POS terminal is a relatively new concept. A Point of Sale (PoS) terminal is an integrated PC-based device, with a monitor (CRT), PoS keyboard, PoS printer, Customer Display, Magnetic Swipe Reader and an electronic cash drawer all rolled into one. More generally, the POS terminal refers to the hardware and software used for checkouts. In recent years, banks are making efforts to acquire Point of Sale (PoS) terminals at the premises of merchants across the country as a relatively new source of income. 'Acquiring' a POS terminal means installing a POS terminal at the merchant premises.

49

Analysis of banking products of PNB with its competitors in both Private & PSU Banks

ICICI bank is again the market leader in POS terminals. These are owned by the banks themselves and not shared between them. If we look at the shared POS terminals the number for each bank would go above 2.5 lakhs.

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Analysis of banking products of PNB with its competitors in both Private & PSU Banks

Credit cards
Credit cards have been in India for well over two and half decades. Over the last five years though, they have literally taken over the market and then came down due to increase in number of debit card usage. The transactions through debit cards jumped by 42 per cent at Rs 26,418 Cr in the last fiscal from Rs 18,547 Cr in 2008-09, it slipped by 4 per cent for credit cards to Rs 62,852 Cr from Rs 65,356 Cr. The total number of credit cards went down to 23.4 Cr in 2009-10 from 25.9 Cr in 2008-09. Downturn in the economy was the major reason for negative trend in credit cards. During the slowdown, banks became cautious in issuing new credit cards to check defaults. Also, last year many lost their jobs which led to the decline in spending through credit cards

Total credit cards sold in the market:

ICICI is the clear market leader in this segment with almost 29% of the credit cards sold. Whereas PNB is merely 1% of the whole credit card segments which points out towards
51

Analysis of banking products of PNB with its competitors in both Private & PSU Banks necessities for improvement and coming up with more new cards and types so that it attracts more consumers.

Types of cards of the banks in the market:

The banks which are being analysed above show that ICICI bank has clearly turned out to be the market leader in the credit cards section with almost 60 credit cards in the market. Whereas PNB being the new entrant has a lot more to cover in order to gain some share in the market.

52

Analysis of banking products of PNB with its competitors in both Private & PSU Banks Interest free credit days (Grace Period)

The second major important thing to attract the consumer is if they fail to pay their credit card bills on time how many days more they will get. Here all the banks including PNB have a similar credit period except the foreign banks which have less credit period. For PNB the credit period range is 20-50 days whereas for Citibank its only 30 days. Annual Fee

The annual fees of using a credit card is variable among the banks. The graph shows the maximum annual fees charged by the banks. Here PNB does not charge any annual fees whereas the highest fee charged is by Standard Chartered which charges annual fees from Rs 0 to Rs 6000. The annual fees charged by the banks changes as per their credit cards.
53

Analysis of banking products of PNB with its competitors in both Private & PSU Banks Joining Fees

The joining fee is to be paid before

the intial fees that has becoming the card

holder of the bank. The graph shows the maximum annual fees charged by the banks. Here again PNB does not charge any joining fees whereas the highest joining fee is charged by ICICI bank of about Rs 25000.The joining fees also changes with the change in the type of credit card in the bank.

Other Features
PNB SBI Axis BOB HDFC ICICI Standar d Charter Citiban k

54

Analysis of banking products of PNB with its competitors in both Private & PSU Banks
ed Rewards: Photo Card Fee: Balance Transfer Fee: Add On Card Fee: 2% processi ng fee or Rs 199 whichev er is higher Rs 100 2% processi ng fee or Rs 199 whichev er is higher Nil 2% processi ng fee or Rs 199 whichev er is higher Rs 100 2% processi ng fee or Rs 199 whichev er is higher Rs 100

Balance Transfer

1% or Rs 199 whichever is higher

Yes

Yes

Card replacem replacem ent fee Pin replacem ent fee

Rs 100

Rs 100

Nil

Nil

Rs 50 30% of minimum amount outstandin g, subject to min. of Rs. 400 and max. of Rs. 500 Min. Rs.10 or 2.5% on transactio n< Rs.400 &>3000- .

30% of minimum amount outstandin g, subject to min. of Rs. 400 and max. of Rs. 600 2.5% or Rs.10 whichever is higher

Late payment fee

Nil to Rs 700

30% of the total amount due(Min. Rs. 350 & Max 600) Nil to 2.5% or Rs 10 whichev er is higher

Rs 100

Variable

Variable

Variable

Fuel Surcharg e Insurance Benefits

0%

Nil to 2.5% or Rs.10 whichev er is higher

2.5% or Rs.10 whicheve r is higher

2.5% or Rs.10 whichev er is higher

The credit cards also have various features which are being taken into considerstion for example, what if the card is lost or is misused would my credit card be safe? Or I have to pay for the misuse done? The answer to this is being given by all the banks that if the card gets lost or
55

Analysis of banking products of PNB with its competitors in both Private & PSU Banks misused, it has the insirance cover upto certain amount. This facility is being given by all the banks. As far as other insurance benefits are concerned, PNB does not provide any other insurance facility on the card unlike others. All the others provide insurance facilities like air accident insurance, life insurance, health insurance etc, giving the consumers a reason to use their credit cards. Other features like add on card fees, late payment fees etc are almost similar with other banks. It is also being noticed that the banks have tied-up with many companies for marketing mutually called as co-branding which PNB is lacking. ICICI being the market leader has tied-up with many companies in airlines sector, hotel chains, other banks, Indian oil company etc, which has provided it an edge as compared to others. Inorder to create a mark in the market, PNB needs to come up with more new innovative ideas like giving out more reward points, introducing more cards which would cover major points of good credit facility, lower fees and charges, good discounts for purchases, facilities like balance transfer, insurance cover etc to be availed so that counsumers are attracted and impressed while buying the services of credit cards.

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Analysis of banking products of PNB with its competitors in both Private & PSU Banks

DEBIT CARDS
Debit cards are the faster growing card-based payment segment in India, given the creditaverse nature of many consumers. Debit cards made their entry in India late 1998. Due to the nature of the product (buy now, pay now), it has experienced exponential growth. Indians are
using more of debit cards than credit cards for their banking transactions, says the Reserve Bank of India (RBI) data for the year ended 2009-10. While the transactions through debit cards jumped by 42 per cent at Rs 26,418 Cr in the last fiscal from Rs 18,547 Cr in 2008-09, it slipped by 4 per cent for credit cards to Rs 62,852 Cr from Rs 65,356 Cr. In the same period, the number of debit cards in circulation has

also increased by 33 per cent as compared to a fall in credit card circulation by 10 per cent over the previous year. The total number of debit cards increased to 17 Cr in 2009-10 from 12.8 Cr in 2008-09. 2008-09. In April this year, debit card payments increased to Rs 2,508 crore from Rs 1,778 crore in the corresponding month last year, according to the central bank's monthly bulletin. Transactions made through these cards in the country rose to Rs 5,473 crore from Rs 4,932 crore in the corresponding month of the previous fiscal.

Total debit cards sold in the market:

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Analysis of banking products of PNB with its competitors in both Private & PSU Banks SBI is the clear market leader in this segment with almost 37% of the debit cards sold. Whereas PNB is 6% of the whole debit card segments which is better than the credit cards but still has a long way to go inorder to gain some substancial base in the market.

No of cards:

Here too ICICI bank is the market leader with approximately 8 cards in the market. PNB has three types of debit cards in the market which is less than ICICI bank. PNB needs to cater in the segments of debit and credit cards so that it can cover a large portion of the mass consumers. PNB is also offering biometric debit cards which are specially launched for illiterates, so that they can also use the services as when require and progress towards a more easier way of living.Not many banks provide this type, which is providing an edge to the bank to promote the card among the illiterates.

58

Analysis of banking products of PNB with its competitors in both Private & PSU Banks Biometric ATM Card: With this card, transaction is authorized based on the finger print of the customer. The card will be used at Biometric ATM only with the use of fingerprint only. Daily withdrawal limit at ATM is Rs. 10000/-.

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Analysis of banking products of PNB with its competitors in both Private & PSU Banks

Other Features:
PNB SBI Axis BOB HDFC ICICI Standa rd Charte Cash withdraw al limit Annual fee Balance transfer fee Add on card fee Card replacem ent fee Other bank ATM charges Overseas ATM charge Duplicate PIN Rs 25 Rs 25 Rs 50 Rs 113 Rs 25 Rs 50 Rs 150 Rs 100 Rs 25 Rs 200 Rs 50 Rs 150 Rs 125 Rs 141 Rs 110 Rs 140 US $2.50/ transacti on Rs 50 Rs 100/250/5 00 Free Rs 169 Free Rs 20 Rs 50 Nil Nil Free Rs 100/250/5 00 Rs 100 Rs 200Rs799 Rs 50 Rs 50 Rs 100 Nil Nil 2500 01000 00 Rs 100 p.a Nil Nil Nil Rs 250 to Rs 500 p.a Nil Free Free 5000 0 50000 150 00 Variable as per card Rs 100/250/5 00 Nil Variab le as per card Rs 200Rs 799 Nil Nil to Rs 600 Nil red Rs 15000 75000 Citiban k

60

Analysis of banking products of PNB with its competitors in both Private & PSU Banks The annual fee charged by PNB is very less as compared to the other banks. Whereas the other transactions charges are somewhat similar to the banks. So in debit cards it is on par in features with the other banks.

Findings & Conclusion

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Analysis of banking products of PNB with its competitors in both Private & PSU Banks

As per the research conducted, it is to be noticed a good sector of the people prefer to be customers of nationalized banks. This result can be very well explained by the fact that nationalized banks are acquainted with the Government and that ups and downs in business will not affect the existence of the bank. Also the RBI too has good control over the working of these banks and there for the customers feel a sense of security in investing in these banks. However it is also seen that a good percentage of people also opt for private banks such as ICICI, bearing in mind the amount of experience they posses in the field of banking. These private banks, even though living with nationalized banks, which have the lions share, appear to be huge market players and market turners.

The range of products of HDFC, ICICI, is much more than that of Punjab National Bank thats why people want to use the credit or debit cards or have relation with these two banks as they can find all their financial needs under a single roof.

On a global scale technological innovations have been the main reasons for International banks to become market drivers and leaders, but the same cannot be said about India. Here improvement of technology has not yet played over the minds of the people. It can be said that only the higher society of the Indian population would consider technological innovations to be very important in terms of deciding the importance of the bank. The other parts of India would hardly consider it to be reason in selecting the bank. Keeping in mind the above analysis it is noticed that consumers are not even aware of the different services provided by the Punjab National bank. Mobile banking and net banking were Greek and Latin to them. Such people would not keep technology in mind to select the bank. But on the other hand the people who understand the importance of technology recognized the various services that are provided and also mentioned that technology today in India has made banking easier. However a huge section of the people knows the importance of an ATM or Credit cards, but the service provision for these products was not found to be up to the mark.

62

Analysis of banking products of PNB with its competitors in both Private & PSU Banks Installation of M-commerce is still to be done on the mobile phone by PNB, whereas new credit and debit cards are the need of the hour for the bank in order to attract more consumers.

PNB is the number one nationalized bank but its major chunk of consumers comes from semi-urban and rural areas. It has followed the mission and vision of providing banking services to the unbanked but it also need to cater to the need of urban consumers who have a lot of faith in the Public Sector Banks.

Since the mobile banking services are newly introduced it would take time to come on par with the other banks but the earlier it caters to it the more its good for the bank. Awareness about the products has to be made in order to make the consumers understand what the bank is providing to them. Still today there is a section of target consumers who are customers of the bank but they dont know about mobile banking, internet banking etc, what they know is the traditional way of banking i.e. coming to the branch from their homes, depositing their cheques or cash etc. The use of ATMs still is unknown to them. Technology is advancing with a greater speed and PNB needs to implement it in order to be with the market. The customer services, traditional products of the bank, the ambience everything is very good which has made it reach at this level today, in order to become the best and first preference of the consumers it needs to fulfill the technological needs of the consumers. To sum up what can be said about PNB is it is still on a growth stage as it is introducing new credit and debit cards (platinum cards) and infant stage for mobile banking services. In mobile banking it has a long way to go, whereas for internet banking, it is developed but needs modification in its services being offered. The reach of ATMs for the consumers has to be grown in order to make consumers utilize their cards more.

63

Analysis of banking products of PNB with its competitors in both Private & PSU Banks

Some important terms to be known:

RTGS: Real time gross settlement systems (RTGS) are funds transfer systems where transfer of money takes place from one bank to another on a "real time" and on "gross" basis. Settlement in "real time" means payment transaction is not subjected to any waiting period. The transactions are settled as soon as they are processed. "Gross settlement" means the transaction is settled on one to one basis without bunching or netting with any other transaction. Once processed, payments are final and irrevocable. NEFT: The NEFT (National Electronic Fund Transfer) Service helps in the seamless transfer of funds from one branch to another without any delays or procedural hassles. Like RTGS, RBI has introduced another type of funds transfer system called NEFT (National Electronic Funds Transfer). The operations and functions of the system are similar to RTGS. RBI has introduced NEFT system mainly to send small value payments at nominal cost. We can send funds from our bank to other bank-branches, which have IFS Code, and joined in NEFT network.

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Analysis of banking products of PNB with its competitors in both Private & PSU Banks

Bibliography

Websites www.google.com www.rbi.org www.banknetindia.com www.thehindubusinessline.com www.pnbindia.com Official sites of all banks Books/Journals/Bulletins Banking Finance RBI Bulletin Economic Times

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