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A Study On Various Services Offered By Punjab National Bank

A Summer Training Report


On
A Study On Various Services Offered By Punjab National Bank
Under the guidance of
SAMER SIR
(FACULTY GUIDE)
_____________________

Submitted By:
MOHIT KUMAR
Roll No. 14710260

In partial fulfillment of the requirement


for the award of the degree
Of
Bachelor in Business Administration
(2014-2017)

INSTITUTE OF ENVIRONMENT &


MANAGEMENT
Amarsanda, Barabanki
( Affiliated toDr. Ram Manohar Lohia, Avadh University )

A Study On Various Services Offered By Punjab National Bank

CERTIFICATE

Certified that this project report titled A STUDY ON VARIOUS SERVICES


OFFERED BY PUNJAB NATIONAL BANK

is the bonafide work of

MOHIT KUMAR who carried out the project work under my supervision.

SIGNATURE

HEAD OF THE DEPARTMENT

A Study On Various Services Offered By Punjab National Bank

DECLARATION

I hereby declare that the project report entitled A STUDY ON VARIOUS


SERVICES OFFERED BY PUNJAB NATIONAL BANK for

partial

fulfillment of requirements for the degree of Bachelor of Business


Administration to Institute of management, Luc know is my original work and
not submitted for the award of any other degree, diploma, fellowship or any
other similar title or prizes.

MOHIT KUMAR
ROLL .NO 14710260

A Study On Various Services Offered By Punjab National Bank

ACKNOWLEDGEMENT

When emotions are profound, words sometimes are not sufficient to express our
thanks and gratitude. With these words, I am trying to express my extreme gratitude
and sincere thanks to Mr. Dr. Pradeep Kumar my HOD who have helped and provided
the very much enthusiasm and consistent encouragement required for the completion
of my project.
The successful completion of my research is the blessing of my teachers, parents and
sincere advice of my friends.
I would also like to thank Corporate HR, Training and Development team for all their
valuable assistance in the project work.
I express my thanks to the Principal Rajeev Sir & Faculty Guide Sameer Sir for
extending their support.
Finally, yet most importantly, I would like to express my heartiest thanks to my
beloved parents for their blessings, my friends for their help and wishes for the
successful completion of their project.

MOHIT KUMAR
ROLL .NO 14710260

A Study On Various Services Offered By Punjab National Bank

TABLE OF CONTENTS

Introduction

Company profile

Aims and objectives

Objectives of the study

Research Methodology
o

Method of data collection.

o
o
o
o
o

Research design
Sampling
Universe
Sample size
Sample Unit

Problems and limitations

Findings, Analysis & Interpretations

SWOT/ETOP analysis

Suggestions/Recommendations

Conclusion

Appendix

Bibliography

A Study On Various Services Offered By Punjab National Bank

Chapter-1
Introduction

Chapter 1
General Introduction

A Study On Various Services Offered By Punjab National Bank

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

A Study On Various Services Offered By Punjab National Bank

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.

A Study On Various Services Offered By Punjab National Bank

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

A Study On Various Services Offered By Punjab National Bank

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 Authorised

Capital

Paid-up

that failed

(Rs. Lakhs)

(Rs. Lakhs)

1913

12

274

35

1914

42

710

109

1915

11

56

1916

13

231

1917

76

25

1918

209

Capital

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

A Study On Various Services Offered By Punjab National Bank

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
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 Study On Various Services Offered By Punjab National Bank

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.
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.

A Study On Various Services Offered By Punjab National Bank

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
Antwerp Diamond Bank
Arab Bangladesh Bank
Bank International Indonesia
Bank of America

A Study On Various Services Offered By Punjab National Bank

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
Socit Gnrale
Sonali Bank
Standard Chartered Bank
State Bank of Mauritius
Banks with Representative Offices in India:

A Study On Various Services Offered By Punjab National Bank

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
Natixis
German Banks
Bayerische Hypo und Vereinsbank
Commerzbank

A Study On Various Services Offered By Punjab National Bank

Dresdner Bank
DZ Bank AG Deutsche Zentral Genossenschafts Bank
HSH Nordbank
Landesbank Baden Wurttemberg

Irish Banks
DEPFA Bank
Italian Banks
Banc Intesa Banca Commerciale Italiana
Banca di Roma
Banca Populare Di Verona E Novara
Banca Popolare di Vicenza
BPU Banca Banche Popolari Unite
Monte Dei Paschi Di Sienna
Sanpaolo IMI Bank
Uni Credito Italiano
Nepalese Banks
Everest Bank
Portuguese Banks
Caixa Geral de Depositos
Russian Banks
Vnesheconombank

A Study On Various Services Offered By Punjab National Bank

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

A Study On Various Services Offered By Punjab National Bank

Future of Banking Sector and Initiated Reforms


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,

A Study On Various Services Offered By Punjab National Bank

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.

A Study On Various Services Offered By Punjab National Bank

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.

A Study On Various Services Offered By Punjab National Bank

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.

A Study On Various Services Offered By Punjab National Bank

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 banksequity, 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

A Study On Various Services Offered By Punjab National Bank

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 todays 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.

A Study On Various Services Offered By Punjab National Bank

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 todays globalised world, focusing on the observance of
standards will help smooth integration with world financial markets.

Chapter-2
Organizations

A Study On Various Services Offered By Punjab National Bank

Profile

Organizations 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.

A Study On Various Services Offered By Punjab National Bank

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

A Study On Various Services Offered By Punjab National Bank

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
March09. As on March09, 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 its 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 its policy of inclusive growth in
the Indo-Gangetic 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 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

A Study On Various Services Offered By Punjab National Bank

first week of April09. 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 worlds biggest
companies compiled by the US magazine Forbes.

Parameters
Operating Profit*
Net Profit*
Deposit

Mar'07
3617
1540
139860

Mar'08
4006
2049
166457

Mar'09
5744
3091
209760

CRAR
26.02
41.67
22.47

Advance
Total Business

96597
236456

119502
285959

154703
364463

26.55
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

A Study On Various Services Offered By Punjab National Bank

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

A Study On Various Services Offered By Punjab National Bank

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

Scheme for house wife and other women

Mahila udhyam nidhi scheme

Women

A Study On Various Services Offered By Punjab National Bank

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
The minimum number of accounts to be opened should be 25 or 75% of the
permanent employees of the corporate (in that location),

whichever is lower.

employee.

strength of the

A Study On Various Services Offered By Punjab National Bank

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
availed at any other bank- in that case normal cheque book

loans to be

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 nonCBS 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
by PNB as annual fee, charges payable to NSDL would be

to be earned

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

A Study On Various Services Offered By Punjab National Bank

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
Age of Student

Personal Loans to the general public.


The overdraft facility would be available for the students, having completed

Purpose

the age of 18 years


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

Repayment

and reputed educational institutions.


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

Recovery Aspects

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


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

Free of cost

of fees/examination fees
Initial Deposit Amount

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

Incidental Charges
Ledger Folio Charges
Retail
Internet

Will be Zero Balance Saving Fund Account


NIL
NIL
Free (at CBS branches only)

Services
Intersol transactions

Banking

including Free

cash withdrawal/deposits
ATM Card/DEBIT CARD
Cheque Book Facility

Free (subject to availability of ATMs in the area)


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,

A Study On Various Services Offered By Punjab National Bank

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

ZERO

of

account

MINIMUM

with

just

BALANCE

Rs.25/-,
requirement;

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

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:

A Study On Various Services Offered By Punjab National Bank

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.
vi.

Free e-mails for statement of account on monthly basis


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

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;

A Study On Various Services Offered By Punjab National Bank

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
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
Local non-base branches
Inter
sol

transfer

charges

Rs.5,00,000/- and above


Rs.5,000/Rs.3000/- Qty.
Unlimited

Free
Free
charges- Free

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
Personalised Multi-City Cheque Book
Stop Payment Instruction charges
Interest/Balance certificate
Cash Withdrawals/Deposits charges at Local Non-Base

50% discount on normal charges


Upto 4 in a month
Free on monthly basis
50% discount on normal charges.
Free
First Year Free
50% rebate in locker rent of one locker
Free
Free
50% concessions on normal charges.
UNLIMITED
Free
Free
Rs.5 lac per day, thereafter 50%

Branches, free upto:


discount on normal charges.
Cash Withdrawals/Deposits charges at outstation Non-Base Rs.1 lac per day, thereafter 50%
Branches, free upto
Charges on payment of outstation Multicity Cheques, Free upto

discount on normal charges


Rs.1 lac per day, thereafter 50%
discount on normal charges.

PNB GAURAV CURRENT ACCOUNT

A Study On Various Services Offered By Punjab National Bank

Features
Quarter
Initial D
Non-ma
Free

Transac
Transac
Inter

Local n
Inter

Outstati

Cash Withdrawals/Deposits charges at outstation Non- Rs.50,000/- per day, thereafter 25%
Base Branches, free upto
discount on normal charges
Charges on payment of outstation Multicity Cheques, Rs.50,000/-per day, thereafter
Free upto

25%

discount on normal charges.

Outstati
Free Sta
Stateme
Remitta
Standin

De-mat

NSDL)
Rebate

Internet
Debit-c
RTGS S

Stop Pa
Interest

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

A Study On Various Services Offered By Punjab National Bank

months-For

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/HalfYearly/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

A Study On Various Services Offered By Punjab National Bank

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
overdraft

Margin

Upto 2 years

5%

Above 2 years and upto 3 years

7.5%

A Study On Various Services Offered By Punjab National Bank

Above 3 years and upto 4 years

10.0%

Above 4 years and upto 5 years

12.5%

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

A Study On Various Services Offered By Punjab National Bank

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

A Study On Various Services Offered By Punjab National Bank

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

A Study On Various Services Offered By Punjab National Bank

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
Employees

our
of

above

branches.
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

- Rs.12500 per month for eligible customers

at

Metro

Centres;

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

A Study On Various Services Offered By Punjab National Bank

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

A Study On Various Services Offered By Punjab National Bank

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

A Study On Various Services Offered By Punjab National Bank

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
Studies Abroad
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.

5%
15%

A Study On Various Services Offered By Punjab National 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

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

A Study On Various Services Offered By Punjab National Bank

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.

A Study On Various Services Offered By Punjab National Bank

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 -

A Study On Various Services Offered By Punjab National Bank

TENOR
For

loans

repayable

Rate of Interest @percent p.a.


REVISED w.e.f. 01.08.2003

in/upto
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.

A Study On Various Services Offered By Punjab National Bank

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

A Study On Various Services Offered By Punjab National Bank

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

Major

&
points

challenges

in

the

growth

discussed

of

in

the

retail

this

banking

sector.

report

are:

banking

industry?

-Global retail banking vis--vis Indian scenario


-Indian retail banking overview
-What

are

the

regulatory

factors

involved

in

Indian

- 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

A Study On Various Services Offered By Punjab National Bank

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

A Study On Various Services Offered By Punjab National Bank

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

A Study On Various Services Offered By Punjab National Bank

7.2% is falling. Those that remain might be thought to be likely buyers of Indian banks. Yet
Citibank, HSBC and Standard Charteredall in India for more than a century, and with
relatively large retail networksseem 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!

A Study On Various Services Offered By Punjab National Bank

A Study On Various Services Offered By Punjab National Bank

Chapter-3
Research
Methodology

RESEARCH METHODOLOGY

A Study On Various Services Offered By Punjab National Bank

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 enquirys 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

A Study On Various Services Offered By Punjab National Bank

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.

A Study On Various Services Offered By Punjab National Bank

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.

A Study On Various Services Offered By Punjab National Bank

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 its very tough.

A Study On Various Services Offered By Punjab National Bank

Chapter-4
DATA
ANALYSIS
AND
INTERPRETATION

DATA ANALYSIS and INTERPRETATION


TABLE
HOW IS BEHAVIOUR OF STAFF?

A Study On Various Services Offered By Punjab National Bank

OCCUPATION

GOOD

SATISFA-

VERY

UNATIS

CTORY

GOOD

FACTORY

TOTAL

%AGE

SERVICE

13

32.5

STUDENT

20.0

RETIRED

10.0

BUSINESS

11

27.5

HOUSE HOLD

10.0

TOTAL

18

40

100

TABLE
DO YOU FIND OUT STAFF CO-OPERATVE/COURTEOUS?
OCCUPATION

YES

NO

TOTAL

%AGE

SERVICE

13

32.5

STUDENT

20.0

RETIRED

10.0

BUSINESS

11

27.5

HOUSE HOLD

10.0

TOTAL

20

20

40

100

A Study On Various Services Offered By Punjab National Bank

TABLE
WHETHER FACILITY OF LOCKER IS UPTO THE MARK?
OCCUPATION

YES

NO

TOTAL

%AGE

SERVICE

10

13

32.5

STUDENT

20.0

RETIRED

10.0

BUSINESS

11

27.5

HOUSE HOLD

10.0

TOTAL

31

40

100

TABLE
IS MANAGER & STAFF RECEPTIVE TO YOUR PROBLEMS?
OCCUPATION

YES

NO

TOTAL

%AGE

A Study On Various Services Offered By Punjab National Bank

SERVICE

13

32.5

STUDENT

20.0

RETIRED

10.0

BUSINESS

11

27.5

HOUSE HOLD

10.0

TOTAL

24

16

40

100

TABLE
HOW MUCH TIME IS TAKEN IN OPENING OF AN ACCOUNT?
OCCUPATION

15

30

1 2

HOURS/ TOTAL

%AGE

MINUTES

MINUTES

HOUR

MORE

SERVICE

13

32.5

STUDENT

20.0

RETIRED

10.0

BUSINESS

11

27.5

A Study On Various Services Offered By Punjab National Bank

HOUSE HOLD

10.0

TOTAL

18

15

40

100

TABLE
DO YOU WANY TO AVAIL OUR CREDIT FACILITIES?
OCCUPATION

PERSONAL

CONSUMER OTHERS

HOUSING CAR

TOTA

LOAN

LOAN

LOAN

SERVICE

13

32.5

STUDENT

20.0

RETIRED

10.0

BUSINESS

11

27.5

HOUSEHOLD

10.0

TOTAL

10

10

40

100

LOAN

%AGE

A Study On Various Services Offered By Punjab National Bank

Chapter-5

A Study On Various Services Offered By Punjab National Bank

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 days 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.

A Study On Various Services Offered By Punjab National 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.

A Study On Various Services Offered By Punjab National Bank

A Study On Various Services Offered By Punjab National 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.