SUMMER TRAINING PROJECT REPORT

ON

ANALYSIS OF SERVICES PROVIDED BY

PUNJAB NATIONAL BANK

PUNJAB NATIONAL BANK

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR

OF BUSINESS ADMINISTRATION (BBA) GURU JAMBHESHWAR UNIVERSITY OF
SCIENCE & TECHNOLOGY, HISAR.

Training Supervisor: Submitted By:

MR.GAURAV SAXENA SUDEEP GHAI

Branch Manager Enrolment No. 08511242809

 SESSION 2008 – 2011

GURU JAMBHESHWAR UNIVERSITY OF SCIENCE AND

TECHNOLOGY, HISAR-125001
 EXECUTIVE SUMMARY

Theoretical and practical knowledge are the two different but interrelated aspects, which makes the
concepts clear and vision bright and help in facing the actual situations. Although theory is first and
important step which acts as a base and creates a picture in mind for a thing but practical knowledge
which bridges the gap between the imaginations and realities, so the practical knowledge is very
important for developing thoughts and giving shape to them.

This type of training programme is very helpful as:

 It installs a feeling of belongingness and of expertness.

 Development of better understanding of concepts.

 Generate morale.

 Acquaints student with job performance standards.

This practical training could be taken as a beginning of indoctrinate into the ways of business
organization and it is the first step towards building a professional career, which would be
helpful in future prospects.

This project deals with the analysis of services provided by PNB.

For the ease the whole project has been divided into various chapters:

 Starting with the introduction of the banking industry and the profile of Punjab National Bank with
its SWOT Analysis.

 Next Chapter describes the Objectives, Methodology, scope and significance around which the entire
project study revolves.

 Chapter three deals with the services provided by the bank .The conceptual discussion involves
steps, aspects, and tools used by bank. During the research it is realized that the practical application
of various theoretical knowledge gained in the classroom learning is very useful. Then, services like
internet banking and debit card services are explained in every respect.
 Next chapter deals with data analysis from where various data has been collected.

 A small set of limitations; conclusions and suggestions have also been given in the report to
make the study useful.

In the way of practical work in the banking operations there was limitation of time during the training as
finance is in itself a very broad area and only a few aspects have been covered in the duration. I have
tried my best to make this training fruitful and bring various new areas of knowledge.
 ACKNOWLEDGEMENT

Acknowledgement is an individual’s feeling towards many people, who directly or indirectly stimulated
& influenced ones intellectual development in ones student and professional life.

This formal statement of acknowledgement will hardly meet the ends of justice in the matter of
expression of my sense of gratitude and obligation to all those who helped me in the completion of this
project.

With great reverence I would like to express my profound gratitude Mr. Anil Aggarwal, Chief Manager
(North Delhi), Punjab National Bank for giving me the opportunity to work with one of the esteemed
bank of the world thereby gave me a chance to look more closely into the field of my interest.

I am extremely grateful to Mrs.K.K.Johar, Senior Manager, Punjab National Bank, Rohini, and for
providing me necessary help and guidance to carry out the project.

Last but not the least I would also like to thank the entire staff of Punjab National Bank who extended
their help and valuable suggestions directly or indirectly at every stage of my training.

SUDEEP GHAI

Enrolment No. 08511242809

TABLE OF CONTENTS
CONTENTS Page No

Chapter 1 – Introduction 1-21

1.1. Overview of Industry as a whole

Chapter 2 – Company Profile 22-45

2.1. Profile of the Organization

2.2. Problems of the Organization

2.3. Competition Information

2.4. S.W.O.T Analysis of the Organization

Chapter 3 – Conceptual Discussion 46-57

Chapter 4 – Research Methodology 58-62

4.1. Significance

4.2. Managerial usefulness of the study

4.3. Objectives

4.4. Scope of the study

4.5. Methodology

Chapter 5 - Data Analysis And Interpretations 63-85

Chapter 6 - Findings and Recommendations 86

Chapter 7 – Conclusion 87
Chapter 8 - Annexure 88-90

Chapter 9 – Bibliography 91
1.1 -OVERVIEW OF THE BANKING SECTOR

Without a sound and effective banking system in India it cannot have a healthy economy. The banking
system of India should not only be hassle free but it should be able to meet new challenges posed by the
technology and any other external and internal factors. For the past three decades India's banking
system has several outstanding achievements to its credit. The most striking is its extensive reach. It is
no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has
reached even to the remote corners of the country. This is one of the main reasons of India's growth
process. The government's regular policy for Indian bank since 1969 has paid rich dividends with the
nationalization of 14 major private banks of India. Not long ago, an account holder had to wait for hours
at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone
are days when the most efficient bank transferred money from one branch to other in two days. Now it
is simple as instant messaging or dial a pizza. Money has become the order of the day. The first bank in
India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking
System can be segregated into three distinct phases. They are as mentioned below:

 Early phase from 1786 to 1969 of Indian Banks

 Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.

 New phase of Indian Banking System with the advent of Indian Financial & Banking Sector
Reforms after 1991.

Phase:I
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank.
The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras
(1843) as independent units and called it Presidency Banks. These three banks were amalgamated in
1920 and Imperial Bank of India was established which started as private shareholders banks, mostly
Europeans shareholders.
In 1865 Allahabad Bank was established and first time exclusively by Indian, Punjab National Bank Ltd.
was set up in 1894 with headquarters at Lahore. Between 1906 and1913, Bank of India, Central Bank of
India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India
came in 1935.
During the first phase the growth was very slow and banks also experienced periodic failures between
1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and
activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949
which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of
1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as
the Central banking authority.

During those days public has lesser confidence in the banks. As an aftermath deposit mobilization was
slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer.
Moreover, funds were largely given to traders.

Phase:II

In 1955, Government nationalized Imperial Bank of India with extensive banking facilities on a large
scale especially in rural and semi-urban areas. It formed State Bank of India to act as the principal agent
of RBI and to handle banking transactions of the Union and State Governments all over the country.

Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th July 1969, major
process of nationalization was carried out. It was the effort of the then Prime Minister of India, Mrs.
Indira Gandhi. 14 major commercial banks in the country were nationalized.

Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with seven more
banks. This step brought 80% of the banking segment in India under Government ownership.

The following are the steps taken by the Government of India to Regulate Banking Institutions in the
Country:

 1949: Enactment of Banking Regulation Act.

 1955: Nationalization of State Bank of India.

 1959: Nationalization of SBI subsidiaries.

 1961: Insurance cover extended to deposits.

 1969: Nationalization of 14 major banks.

 1971: Creation of credit Guarantee Corporation.

  1975: Creation of regional rural banks.

 1980: Nationalization of seven banks with deposits over 200 crores.

After the nationalization of banks, the branches of the public sector bank India raised to approximately
800% in deposits and advances.

Took a huge jump by 11,000%.

Banking in the sunshine of Government ownership gave the public implicit faith and immense
confidence.

Phase:III

This phase has introduced many more products and facilities in the banking sector in its reforms
measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name,
which worked for the liberalization of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a
satisfactory service to customers. Phone banking and net banking is introduced. The entire system
became more convenient and swift. Time is given more importance than money.

The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered
by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible
exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and
banks and their customers have limited foreign exchange exposure.

CURRENT SCENARIO

Currently (2008), overall, banking in India is considered as 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. Even in terms of quality of assets and capital adequacy, Indian banks are considered to
have clean, strong and transparent balance sheets-as compared 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-without any
stated 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. M & As, takeovers, asset sales and much more action (as it is
unraveling in China) will happen on this front in India.

Recently (March 2007), 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.

Currently, India has 88 scheduled commercial banks (SCBs) - 28 public sector banks (that is with the
Government of India holding a stake), 29 private banks (these do not have government stake; they may
be publicly listed and traded on stock exchanges) and 31 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

COMMERCIAL BANKING STRUCTURE

The commercial banking structure in India consists of:

 Scheduled Commercial Banks in India

 Unscheduled Banks in India

Scheduled Banks in India constitute those banks, which have been included in the Second
Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only those banks in
this schedule, which satisfy the criteria laid down, vide section 42 (6) (a) of the Act.

The scheduled commercial banks in India comprise of State bank of India and its associates (8),
nationalized banks (19), foreign banks (45), private sector banks (32), co-operative banks and
regional rural banks.

"Non-scheduled bank in India" means a banking company as defined in clause (c) of section 5 of the
Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank".
The following are the Scheduled Banks in India (Public Sector):

 State Bank of India

 State Bank of Bikaner and Jaipur

 State Bank of Hyderabad

 State Bank of Indore

 State Bank of Mysore

 State Bank of Patiala

 State Bank of Saurashtra

 State Bank of Travancore

 Andhra Bank

 Allahabad Bank

 Bank of Baroda

 Bank of India

 Bank of Maharashtra

 Canara Bank

 Central Bank of India

 Corporation Bank

 Dena Bank

 Indian Overseas Bank

 Indian Bank

 Oriental Bank of Commerce

 Punjab National Bank

 Punjab and Sind Bank

 Syndicate Bank

 Union Bank of India

 United Bank of India

 UCO Bank

 Vijaya Bank

The following are the Scheduled Banks in India (Private Sector):

 Vysya Bank Ltd

 UTI Bank Ltd

 Indusind Bank Ltd

 ICICI Banking Corporation Bank Ltd

 Global Trust Bank Ltd

 HDFC Bank Ltd

 Centurion Bank Ltd

 Bank of Punjab Ltd

 IDBI Bank Ltd

The following are the Scheduled Foreign Banks in India:

 ANZ Gridlays Bank Plc.

 Bank of America NT & SA

 Bank of Tokyo Ltd.

 Banquc Nationale de Paris

  Barclays Bank Plc

 Citi Bank N.C.

 Deutsche Bank A.G.

 Hongkong and Shanghai Banking Corporation

 Standard Chartered Bank

 The Chase Manhattan Bank Ltd.

 Dresdner Bank AG

TERM LENDING INSTITUTIONS

Term lending Institutions were established to provide medium- term and long-term financial assistance
to various industries for setting up new projects and for the expansion and modernization of existing
facilities. These institution. Provide fund- based and non- fund based assistance to industry in the form
of loans, underwriting, direct subscription to shares, debentures and guarantees. The primary long-term
lending institution. Include IDBI (converted into a banking company with effect from Oct, 2004), IFCI Ltd.
Infrastructure development Finance Company Ltd. And Industrial Investment Bank of India and
Industrial Credit Corporation of India Ltd. (prior to its amalgamation). The term lending
Institutions.Were expected to play a critical role in industrial growth in India and, accordingly, had
access to confessional govt. funding. However,in recent years, the operating environment of the term
lending institutions. Has changed substantially. Although the initial role of these institutions. Was largely
limited to providing a channel for Govt. funding to industry, the reform process required them to
expand the scope of their business activities. Their new activities include:

 Fee – based activities like investment banking and advisory services

 Short- term lending activity including corporate loans and working capital loans.

The RBI has a centralized control over all banks. It performs a wide range of functions to:

 Issue Bank notes

 Supervise & administer exchange control and banking regulations and administer the Govt. policy
 Issue licenses to the foreign banks for operations in India

 Approve the licenses of operation for the private banks

 Grant licenses to new banks and new bank branches.

 Structure of the organised banking sector in India. Number of banks are in brackets.

Punjab National Bank’s Performance Highlights

Operating Profit

• Despite the challenging operating environment characterized by increased preemptions under

CRR and hardening of interest rates, the Bank has been able to post a modest increase in
Operating profit, without revision in lending rates in Q1 of FY 2008-09. The Operating profit of
the bank increased Y-o-Y by 5.3 % to Rs 982.43 crore from Rs 933.12 crore during the
corresponding quarter last year.

Net Profit

• Net profit of the bank registered a Y-o- Y growth of 20.6% to Rs 512.40 crore, during Q1 of FY
2008-09, from Rs 425.06 crore in the corresponding quarter of last year. Improved asset quality
and steps taken earlier for derisking the investment portfolio enabled the Bank to register
growth in Net profit despite increase in G-sec yields. The increase in Net Profit is after providing
for all mandatory provisions.

Income

 Total Income increased to Rs 4595 crore from Rs 3795 cr in Q1 last FY, registering a y-o-y growth
of 21.07%.

 Yield on advances of the bank improved to 10.74% in June 2008 from 10.23% in June 2007.

 Fee based income of the bank increased to Rs 443 crore as compared to Rs 377 cr during Q1 of
FY 2007-08, registering a y-o-y growth of 17.5%.

Operating Expenses

• During Q1 of FY 2008-09, the growth in total operating expenses of the bank, has been
contained at 4.73 %.
• Staff expenses of the bank, during the quarter ended June 2008 was Rs 644 crore compared to
Rs 641 crore during the quarter ended June 2007.

Net Interest Income: (NII)

• NII for Q1 June’08 increased to Rs 1445 cr from Rs 1301.cr in June’07 registering a y-o-y increase
of 11.05%.

Net Interest Margin : Net Interest Margin of the Bank is 3.27% in Q1 of FY 2008-09 as compared to
3.59% in Q1 of FY 2007-08 due to increased cost of funds and higher CRR prescription. Bank has already
taken appropriate measures to protect the margins.

Return on Assets (ROA) stood at 1.00% at the end of June 2008, as compared to 1.02% at the end of
June 2007.

Capital to Risk Asset Ratio (CRAR): The level of CRAR as per Basel II accord is 12.96 %, at the end of June
2008 of which Tier I capital comprising of paid up capital and free reserves is 8.87%.

NPA Administration : The focus has been on arresting slippages, recovery and up gradation of NPA
accounts. As a result, the Ratio of Gross NPAs to Gross Advances declined to 2.82%, as at the end of June
2008, from 3.81% at the end of June 2007. The ratio of net NPAs to net Advances declined to 0.63% at
the end of June 2008 from 0.98% at the end of June 2007.

Total Business of the bank increased by 20.7% on y-o-y basis to reach Rs 2,87,504 crore at the end of
June 2008 compared to Rs 238249 as on June2007.

Deposits at the end of June 2008 were Rs 1,73,074 crore compared to Rs 142609 crore in June 2007,
registering a YOY growth of 21.4%.

Advances at the end of June 2008 were Rs 1,14,430 crore compared to Rs 95640 cr in June 2007
recording a y-o-y growth of 19.6%. The increase in advances is after writing off more than Rs.1100 cr. of
Agriculture debt in terms of Agricultural Debt Waiver & Debt Relief Scheme – 2008 framed by Govt. of
India.

Retail credit (excluding traders) increased to Rs 18,893 crore at the end of June 2008 from Rs 16,159
crore in June 2007, registering a growth of 16.92%. To expedite credit sanction and better risk
assessment, Bank has adopted ‘Hub and Spoke’ model under which 67 Hubs have been set up for
sanction of retail loans.

Education loan which is the main thrust area of the bank grew by 62% to Rs 1,187 crore at the end of
June 2008 from Rs 731 cr in June 2007. The education loan applications are being accepted online. The
bank has also made a tie up arrangement with M/s Kotak Mahindra Mutual Life Insurance Ltd for
providing insurance cover to its education loan borrowers.

Financial Inclusion

Bank has declared Year 2008, as ’Year of Financial Inclusion’ for providing banking facilities, at a fair
cost, to a vast majority of low income population which is deprived of these facilities.

Till now, the bank has opened 7.98 lakh “No Frill” accounts with an outstanding balance of Rs 151 crore.
Overdraft facility has also been extended in 7,751 accounts. The bank has also issued 26,793 General
Credit Cards amounting to Rs 48.6 crore.

The bank plans to launch 27 pilot projects (20 rural and 7 urban) out of which 8 have already been
launched. The bank has also opened its first dedicated Micro Finance Branch in Mukundpur, Delhi which
is equipped with all modern banking facilities such as CBS system, ATM, Lockers, insta remit, internet,
etc.

• The bank is also in the process of opening Micro Finance Branches at Devli, Delhi. and Gumla,
Jharkhand.

• To give more focused attention to SMEs, 7 centralized hubs will be set up in different parts of
the country. Besides, 7 new specialised SME branches will also be opened taking their total
number to 42.

• The bank has taken new initiative in collaboration with Centre for Rural Development (a local
NGO partner of America India Foundation, a non- profit organization) at Varanasi, Allahabad &
Lucknow and with SamaaN Foundation at Patna by introducing a comprehensive scheme
covering finance, insurance (health and life) etc for the upliftment the Rickshaw pullers

• The bank has also entered into an agreement with the America India Foundation, on June 17,
2008 to make credit facility available to NGOs working in the sphere of livelihood promotion and
 generation. This MoU will enable unorganised sector workers, like rickshaw pullers to avail
loans.

• PNB’s 8 Farmers’ Training Centres (FTCs) trained more than 1,46,600 persons including around
21,500 women by the end of June 2008. Training has been provided Free of Cost to the rural
youth for creation of self employment opportunities and improving their living standards.

• Being the SLBC Convenor in the states of Punjab & Haryana, the bank has opened

Financial Literacy cum Credit Counselling Centres in these states. The main objective has been to build
capabilities of the common man for absorption of credit and its proper utilisation for income generation.
Besides, the bank has recently signed an MoU with Infrastructure Leasing & Financial Services - Cluster
Development Initiative Ltd (IL&FS-CDI) to work towards developing viable financing models and best
practices for industrial infrastructure projects & SMEs in the cluster, which can be replicated across
different sectors and geographical locations.

Information Technology

Large network of Core Banking Solution SOLs : 3941 Service Outlets (SOLs) at 1849 centres, covering
90% of bank's business, facilitating more than 3 crore customers with "anytime and anywhere" banking.
Besides, Cash Management Services are also available in all CBS branches.

The bank has 3347 RTGS; 3347 NEFT and 1395 SFMS branches.

The number of ATMs in the bank is 1581 with 51.36 lac ATM/Debit card holders.

ATMs (sharing arrangement): More than 27000

The bank’s internet Banking Services are used by more than 3.8 lakh users.

Branch Network

With 4598 domestic offices, including 292 extension counters, the bank has the largest network of
offices, among nationalized banks. The bank also has overseas branches – Kabul (Afghanistan),
Hongkong and Offshore Banking Unit (OBU), Mumbai. Besides Bank has a subsidiary in London, PNB
International Ltd operating with 2 branches.

Awards
 at the IDRBT Banking Technology awards for the
"Best IT Team of the Year Award"
year 2005-06.
SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking & Financial

by NASSCOM in partnership with Economic Times
Services Industry - 2004

for Excellence in Corporate Governance - 2005 by

Golden Peacock Award
Institute of Directors

FICCI's Rural Development Award for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary

for becoming a pioneer in Public Banks - 2005
use of Technology

Golden Peacock National Training - 2004

by Institute of Directors
& 2005

National Award for Excellence in SSI Ranked 2nd for 4 consecutive years - 2002, 2003, 2004
Lending & 2005

Banking Technology Awards 2004

Runner up in 'Best IT Team of the Year Jointly Adjudged by IBA, Finacle & TFCI
Award 2005'

Money Outlook Award - 2004

Runner up in 'Best Bank (public Sector) of
the year Award' -2005

Niryat Bandhu Gold Trophy for excellence in export perforamnce for 3 consecutive
years 2001, 2002 & 2003
 by Federation of Indian Exporters Organization (FIEO)

by the leading Financial Daily The Economic Times, June

21st Amongst Top 500 Companies
2005

9th amongst India's Top 50 Most Trusted

A.C Nielson Survey, The Economic Times Dec 2004
Service Brands

3rd Rank amongst Banking Sector in India

The Bankers' Almanac, January 2006
323rd Rank in the World

368 amongst Top 1000 Global Banks The Banker, London July 2005

PERFORMANCE ANALYSIS FOR YEAR 2006 AND 2007

I. Financial Results
1. Profit & Loss Account

• Net profit for the first half of the current financial year 2007-08 amounted to Rs 963.55 Cr,
compared to Rs 872.51 Cr during the first half of FY 2006-07, registering a y-o-y growth of
10.4%.

• Operating Profit of the bank (excluding loss incurred on transfer of securities to HTM portfolio)
during the half year ended September 2007 increased to Rs 1788 Cr, compared to Rs 1778 Cr
during the half year ended September 2006. However, on accounting for the loss of Rs 497.74 Cr
incurred on transfer of securities to HTM portfolio, the Operating Profit of the bank amounted to
Rs 1290 Cr during the first half year ended September 2007. The transfer of securities was done
during the first quarter of FY 2007-08 to de-risk the investment portfolio of the bank from
interest rate risk.

In the current environment, higher pressure on Net Interest Margin & NPAs and the need for
additional provisioning for pension, gratuity & leave encashment for staff of the bank under
projected unit credit method (PUCM) resulted in lower operating profit of the bank.

• Total income of the bank increased to Rs 7228 Cr during April-September 2007, compared to
Rs 5596 Cr during April-September 2006, registering a y-o-y growth of 29.2%.

Non-Interest income through commission, exchange and brokerage increased by 17.4 % to Rs

540 Cr during the first half of FY 2007-08 from Rs 461 Cr during the first half of FY 2006-07.

Total expenses (excluding provisions) amounted to Rs 5938 Cr during the half year ended
September 2007, compared to Rs 4204 Cr during the half year ended September 2006, registering a
y-o-y growth of 41.2%.

Net Interest Margin has declined to 3.49% during April- September 2007 from 3.86% during April-
September 2006.

Yield on Advances of the bank has improved to 10.20% during April-September 2007 from 8.95%
during April- September 2006.

Due to the overall firming of interest rates, the Cost of Deposits of the bank increased to 5.55%
during the first half of FY 2007-08 from 4.35% during the first half of FY 2006-07.
 Yield on Investment of the bank has declined to 6.88% during April- September 2007 from 7.09%
during April- September 2006.

Return on Assets stood at 1.13% at the end of September 2007.

Capital to Risk Asset Ratio (CRAR) at the end of September 2007 at 12.58%. Bank is ready for
Basel II compliance.

2. Balance Sheet

• Total Business of the bank increased by 19.3% on y-o-y basis to Rs 251474 Cr at the end of
September 2007 compared to Rs 210755 Cr as at the end of September 2006.

• Total Deposits at the end of September 2007 amounted to Rs 149980 Cr, compared to Rs
128415 Cr as at the end of September 2006 registering a growth of 16.8 % on y-o-y basis.
CASA accounted for 43.91 % of the total deposits of the bank at the end of September 2007.

• Advances at the end of September 2007 amounted to Rs 101494 Cr, compared to Rs 82340
Cr as at the end of September 2006, registering a y-o-y growth of 23.3 %.

Retail credit constituted 23.3% of Gross Credit of the bank, as at the end of September 2007. It
increased by 21.8% to Rs 24100 Cr at the end of September 2007 from Rs 19794 Cr at the end of
September 2006. Education loan is the main thrust area of the bank, showing an increase of 35% to
Rs 1155 Cr, while loan to traders increased by 46% to Rs 7889 Cr.

Priority sector advances increased to Rs 41,709 Cr at the end of September 2007, compared to Rs
36,615 Cr as at the end of September 2006, registering a Y-O-Y growth of 13.9%. Ratio of PS
advances to adjusted net bank credit continued to remain much higher at 42.38% against national
goal of 40%.

The bank has opened more than 3 lakh No Frill accounts under PNB Mitra Scheme and has issued
more than 24,000 General Credit Cards.

Credit to Agriculture was Rs 18,942 Cr at the end of September 2007, compared to Rs 16570 Cr as
at the end of September 2006 showing Y-O-Y growth of 14.3%. Agricultural advances as percent to
adjusted net bank credit at around 18.3% was higher than the national goal of 18%.
 To facilitate disbursal of credit to the farmers, the bank has issued 1,29,433 Kisan Credit Cards
(KCCs) during April-September 2007 taking the cumulative number to 22.48 lakh KCCs.

The bank's advances to the Small Enterprises at the end of September 2007 stood at Rs 11,789 Cr,
compared to Rs 9606 Cr as at the end of September 2006, recording a Y-O-Y growth of 22.7%. Ratio
of Small Enterprises advances to adjusted net bank credit stood at 11.98% at the end of September
2007.

II. Information Technology

• Core Banking Solution (CBS) has been implemented in 2791 Service Outlets (SOLs) at 935
centres, covering 83% of bank's total business, facilitating around 2.23 Cr customers with
"anytime and anywhere" banking.

• National Electronic Fund Transfer (NEFT) is operational in 2280 branches.

• The bank has 2353 RTGS and 1395 SFMS branches.

III. International Operations

• Total Export-Import turnover of the bank increased to Rs 30,506 Cr in half year ended
September 2007 as compared to Rs 24,848 Cr in the half year ended September 2006,
registering a y-o-y growth of 22.8 %.

• PNB’s Hong Kong branch is likely to be operational in the month of November, 2007. The
bank is in the process of upgrading its Representative Office at Shanghai into a branch and
to establish presence at Singapore (OBU) and Canada (Subsidiary). PNB is also exploring
possibilities for its presence in Bhutan through JV route.

IV. NPA Management

• At the end of September 2007, the ratio of Net NPAs to net Advances was 1.86 %, while
Gross NPAs to Gross Advances of the bank stood at 4.57 % at the end of September 2007.

V. New Business Initiatives of the Bank

• Bank launched a pilot project on financial inclusion at Neemrana, Distt. Alwar, Rajasthan
and endeavors to launch it at 9 more places, viz at Chandigarh, Taran Taran, Saharanpur &
Balia, Dehradun, Ranchi, Mayur Bhanj, Gaya and Patna.

• Under Financial Inclusion, the bank plans to cover 30,000 villages, 15 million households
and 75 million people by 2010.

• PNB’s 8 Farmers’ Training Centres (FTCs) trained 1, 09,614 persons till September 2007.
The FTC introduced a scheme, called Kisan Bandhu whereby 5 local youth have been
inducted and trained at each FTC, who are actively pursuing the task of financial inclusion by
visiting the doorstep of villagers.

• PNB has introduced PNB Baghban, a Reverse Mortgage Loan Scheme for senior citizens
and 49 cases involving an amount of around Rs 18 Cr have already been sanctioned.
2.1 PROFILE OF THE ORGANIZATION

India’s Largest Nationalised Bank

218 banks in the Indian Banking System Among the Nationalised Banks

133
140
120 70-80% of the
100
Deposits, Advances,
80
60 Total Assets and
27 30
40 Total Income
20 of the
20 8
Banking Sector Largest Highest
0
Private
Sector

Foreign
Nationalised
Associates

Rural Banks

Asset Base
Banks

Banks

Regional
SBI &

Banks

CASA
Largest
Branch
Network

Overtime the share of the Public Sector banks in total business of banking
system has eroded from more than 93% in 1993 to about 76% in 2007.
 However PNB has been able to maintain its share in the total business of
banking system at around 5.5 - 6% during the same period.

PNB a frontline banking institution

With its presence virtually in all the important centres of the country, Punjab National Bank
offers a wide variety of banking services which include corporate and personal banking,
industrial finance, agricultural finance, financing of trade and international banking. Among the
clients of the Bank are Indian conglomerates, medium and small industrial units, exporters, non-
resident Indians and multinational companies. The large presence and vast resource base have
helped the Bank to build strong links with trade and industry.

Punjab National Bank is serving over 3.5 crore customers through 4540 Offices including 421
extension counters - largest amongst Nationalized Banks.
Punjab National Bank with 112 year tradition of sound and prudent banking is one among 300
global companies and seven Indian companies which are expected to emerge as challengers to
World’s leading blue chip companies. While among top 1000 world banks, “The Banker”, the
leading magazine in London, has placed PNB at the 248th position, the bank features at 1308th
position among Forbe’s Global 2000 list of global giants and fast growing companies.

At the same time, the bank has been conscious of its social responsibilities by financing
agriculture and allied activities and small scale industries (SSI). Considering the importance of
small scale industries bank has established 31 specialised branches to finance exclusively such
industries.

Strong correspondent banking relationship which Punjab National Bank maintains with over 200
leading international banks all over the world enhances its capabilities to handle transactions
world-wide. Besides, bank has Rupee Drawing Arrangements with 15 exchange companies in
the Gulf and one in Singapore. Bank is a member of the SWIFT and over 150 branches of the
bank are connected through its computer-based terminal at Mumbai. With its state-of-art dealing
rooms and well-trained dealers, the bank offers efficient forex dealing operations in India.

The bank has been focussing on expanding its operations outside India and has identified some
of the emerging economies which offer large business potential. Bank has set up representative
offices at Almaty: Kazakhistan, Shanghai: China and in London. Besides, Bank has opened a full
fledged Branch in Kabul, Afghanistan.

Keeping in tune with changing times and to provide its customers more efficient and speedy
service, the Bank has taken major initiative in the field of computerization. All the Branches of
the Bank have been computerized. The Bank has also launched aggressively the concept of "Any
Time, Any Where Banking" through the introduction of Centralized Banking Solution (CBS) and
over 2409 offices have already been brought under its ambit.

PNB also offers Internet Banking services in the country for Corporates as well as individuals.
Internet Banking services are available through all Branches of the Bank networked under CBS.
Providing 24 hours, 365 days banking right from the PC of the user, Internet Banking offers
world class banking facilities like anytime, anywhere access to account, complete details of
transactions, and statement of account, online information of deposits, loans overdraft account
etc. PNB has recently introduced Online Payment Facility for railway reservation through
IRCTC Payment Gateway Project and 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.

Another step taken by PNB in meeting the changing aspirations of its clientele is the launch of its
Debit card, which is also an ATM card. It enables the card holder to buy goods and services at
over 99270 merchant establishments across the country. Besides, the card can be used to
withdraw cash at more than 25000 ATMs, where the 'Maestro' logo is displayed, apart from the
PNB's over 1094 ATMs and tie up arrangements with other Banks.

Heritage

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
nationalized 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 branches and 447 Extension Counters spread
throughout the country.

 Strategic business area covers the large Indo-Gangetic belt and the metropolitan centers.

 Ranked as 244th 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
centers all over the globe.
 Rupee drawing arrangements with M/s UAE Exchange Center, 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.

Keeping in tune with changing times and to provide its customers more efficient and speedy
service, the Bank has taken major initiative in the field of computerization. All the Branches of
the Bank have been computerized. The Bank has also launched aggressively the concept of "Any
Time, Any Where banking" through the introduction of Centralized Banking Solution (CBS) and
over 2000 offices have already been brought under its ambit.

VARIOUS RECOGNITIONS RECEIVED BY PNB

Punjab National Bank has been ranked 38th amongst top 500 companies by The Economic Times. PNB's
attempts at providing best customer service has earned it 9th place among India’s Most Trusted top 50
service brands in Economic Times- A.C Nielson Survey.

Punjab National Bank has been ranked at 368th position amongst the top 1000 global banks by the
prestigious international publication “The Banker”, London.

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

ith its state-of-art dealing rooms and well-trained dealers, the bank offers efficient forex dealing
operations in India.

At the same time, the bank has been conscious of its social responsibilities by financing agriculture and
allied activities and small-scale industries (SSI). Considering the importance of small-scale industries
bank has established 31 specialised branches to finance exclusively such industries.

IT INFRASTRUCTURE OF PNB
With technology emerging as the key driver of business growth, the bank has taken number of IT
initiatives to provide its large clientele spread all across the country with the best technology while
retaining the all essential human warmth. All the Branches of the Bank have been computerized. The
Bank has also launched aggressively the concept of "Any Time, Any Where banking" through the
introduction of Centralized Banking Solution (CBS) and over 2000 offices have already been brought
under its ambit. Its Core Banking Software already acts as a single data bank, a backbone to its branches.

The bank has 676 ATMs and also coordinates with the MITR group of six banks with. Punjab National
Bank Card user can buy goods and enable services from 45,000 merchant outlets in India and can
withdraw cash from over 4500 ATMs with its own 450 ATMs. The bank coordinates with the MITR group
of five banks. PNB has also pioneered the cheque truncation system in India.Other softwares fuelling the
systems are instant funds transfer mechanism, data warehouse for decision control and MIS and risk
management software.

PNB-ONLINE

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.

PUNJAB NATIONAL BANK BRANCHES

Punjab National Bank has its Branches in all the 7 metropolitan and cosmopolitan cities in India namely
New Delhi, Mumbai, Calcutta, Chennai, Bangalore, Hyderabad and Ahmedabad. It even has its branches
in small town in both urban as well as rural areas. PNB is always focusing on expanding abroad and till
date has identified some emerging economies abroad. They are in few of these places.

 Almaty

 Kazakhistan

 Shanghai

 China

 London

 Kabul

 Afghanistan

QUALITY POLICY OF PNB

 To effectively meet customers' requirements and endeavor to achieve total customer

satisfaction.

 To gain consistent faith and confidence of customers and potential customers regarding the
quality of services rendered.

 To pursue excellence through continuous improvement in all areas and to distinguish ourselves
by the quality of our services.

 To achieve operational efficiency by attaining better productivity and profitability.

 To work and act in such a manner that all services rendered in due course of banking lead to
excellence and improved credibility and image of the Bank.
ORGANISATION STRUCTURE

Bank has its corporate office at New Delhi and 25 zonal offices which in turn supervise 48 regional
offices under which the branches function. The delegation of powers is decentralised up to the branch
level to facilitate quick decision-making.

Organizational Structure

Head Office

Zonal Offices (25)

Regional Offices (48)

Branches (4056)

In the organization where I worked ,its organizational chart as follows:

Senior Manager

Deputy manager

Officer

  
ROUTINE CCO CTO
Company Visions and Mission

PNB’S SERVICES

 CENTRALISED BANKING SOLUTION (CBS) – CBS, an inter – branch networking and data –sharing
platform helps you to operate your account from any city in India having CBS networked
branches, changing your status from customer of the branch to customer of the bank. Presently
there are over 2000 CBS networked branches in 500 cities.

 ONLINE BILL PAYMENT – no more queues to pay your bills. Now pay your telephone, mobile,
electricity, insurance &several other bills 24 hours, 365 days, from your desktop.

 CASH MANAGEMENT SERVICE – PNB’S CMS facilitates faster funds transfer, reduces the cost of
funds & helps to reconcile the accounts besides providing host of MIS.
 CORPORATE INTERNET BANKING – online funds transfer, trade finance management, funds
management …global access with unmatched benefits through PNB corporate Internet banking.

 REAL TIME GROSS SETTLEMENT(RTGS) – AN RTGS payment system is one in which funds are
remitted / received instantly to/ from other banks / our own designated branches on continuous
basis on the same day.

 ELECTRONIC CLEARING SERVICE(ECS) AND ELECTRONIC FUND TRANSFER(EFT) -- avail ECS for
quick movement of funds in a paperless mode &EFT to ensure an expeditious transfer of funds
by using electronic media.

 LOCKERS— Now you can relax with assurance of having your locker at PNB branch nearest to
your home wherever that is! Free accidental insurance also available

 CALL CENTRE – All your banking queries and problems are just a call away! PNB presents call
center facility for its branch customers. Call toll free at 18001802222.

 RETAIL INTERNET BANKING – Have an online access to your bank account anytime, anywhere
through PNB Internet banking.

 12-HOUR BANKING SERVICE—Bank at your convenience and at your time. PNB offers 12 hour
banking services at select CBS branches.

 ATM/DEBIT CARD – Access the power of your money at over 600 ATMS &55,000 establishments
across the country using the free ATM card along with free accidental insurance.

 ONLINE SHOPPING – The service facilitates the customers to book hotels, buy gifts, send
flowers, buy books and lot of activities by making payments online

 MUTUAL FUNDS AND INSURANCE – The Bank Has Tied –Up With Principal Financial Group For
Providing Mutual Funds And Insurance Services.

 NRI SERVICES – NRE, FCNR, RFC, NFO A/C And Investments Management For NRI’S.

 MITR – The friendly network of 4500 shared ATM’s of 5 commercial banks in 143 cities. Take
advantage of this network with just one ATM/ Debit card.
 E- MONEY INDIA – Send money to your loved ones in India through PNB ‘S e-money India
services. Draft delivery across 4038 locations and bank credit to over 1400 branches in India.

 PNB EXPRESS SERVICES KIOSK – Pay your bills & deposits cheques at tour convenience through
this unique service.

 ONLINE RAILWAY RESERVATION – Say good-bye to long queues. PNB offers you online booking
& information through IRCTC payment gateway. Just click and travel comfortably.

 FOREIGN EXCHANGE – PNB has 143 branches authorizes for handling foreign exchange business
and these branches have been provided with swift connectivity to ensure faster realization.

 DEPOSITORY SERVICE – PNB Depository service provides the facility of having share & securities
in DEMAT form & executes sales &purchases transactions electronically.

 CAR LOAN – Drive Your Dream Car Home… PNB gives loan for the purchase of new/ old car, van
or jeep at very attractive interest rates with a convenient repayment period.

 LOAN AGAINST JEWELLERY—Loan against gold & Jewellery for individuals

business enterprises, both for business & personal needs.

 TRADERS LOAN – Maximize your business turnover with PNB traders loan with minimum paper
work and attractive rate of interest, for whole sellers, dealers distributors, individuals, firms,
reregistered cooperative societies &companies, loans also available for purchase of shops/
showroom.

 HOUSING LOAN – Bring your own dream house to life. Avail flexi housing loan and have the
advantage of substantial savings on the interest component. insurance cover for home loan
borrowers available

 PERSONAL LOAN – It includes vivaha loan for marriages, PARYATAK loan for tour / travel, arogya
loan for medical treatments, PNB joy for fulfilling the need of working couples and many others
personal needs.

 EARNEST MONEY DEPOSIT SCHEME – Buying your home is made easier by PNB , by offering
loans for meeting earnest money deposits (EMD) requirements of housing boards , to apply for
allotment of plot / flat/ house.
 CORPORATE LOANS – Corporate can expand &diversify with user friendly corporate loans
products working capital, term loan , bank guarantee , letter of credit & others .

 OVERDRAFT FACILITY FOR HOUSING LOAN CUSTOMERS – in its pursuit to provide value added
services, PNB offers overdraft facility to exiting housing loan borrowers for personal needs.

 EDUCATIONAL LOAN – Avail SARVOTTAM SHIKSHA & VIDYALAKSHYAPURTI schemes for studies
in India &abroad and ensure a great career for your child

 LOAN TO PENSIONERS – PNB values the traditions of India by giving special benefits to the
senior citizens.

 SUPPLY CHAIN FINANCE – to provide finance both to the suppliers (vendors) and buyers
(dealers) of companies.

 LOAN TO DOCTORS – SAFAL CHIKITSAK the solution towards an excelling medical practice.

 PNB GRAMIN CHIKITSAK – scheme for financing qualified medical practitioners for setting up
clinics in rural areas at concessional rate of interest

 LOAN AGAINST PROPERTY – PNB presents two unique loan schemes for property owners

 Loan against mortgage of immovable property

 Loan against future lease rentals

 PERSONAL ACCIDENT INSURANCE COVER TO RETAIL LOAN BORROWERS —to make retail loan
schemes more customer friendly PNB provides personal accident insurance to retail loan
borrowers.

 LOANS TO WOMEN – PNB’S MAHILA SAMRIDHI YOJANA &MAHILA SASHAKTIKARAN ABHIYAAN

give special benefits to women customers that help in building their confidence and self –
esteem.

 FD SPECTRUM – a multi – option fixed deposit scheme that fits your needs , timings &resources
, to match your convenience.
 PNB LIFE – Delighting Depositors With Life Insurance By Extending The Facility Of Insurance
Cover death only) To All Our Savings Fund And Current Account Holders.

 TOTAL FREEDOM SALARY ACCOUNT—discover the freedom of flexibility with PNB’s total
freedom account.. A zero balance account for employees having salary account in the bank, with
overdraft.

 PNB VIDYARTHI ACCOUNT—empowering the young generation with a zero balance account for
students with overdraft facility.

 PRUDENT SWEEP – earn FD interest and enhance returns in your saving account.

 PNB VAIBHAV – another attractive and convenient scheme for current account holders with
quarterly average balance of Rs5 lac , offering many concessions on service charges.

 PNB SAMRT RAOMER – now earn handsome returns on surplus funds in your current account
by automatic transfer of funds to your fixed deposit account for specified periods, without
affecting liquidity.

 PNB GAURAV – PNB GAURAV, a current account that comes loaded with benefits and
advantages in accounts with quarterly average balance of rs.1 lac.

 AUTO SWEEP ACCOUNT FOR GOVERNMENT DEPOSITS – a deposit product for government
deposits offering best possible returns with operational convenience for utilizing the funds in
case of need and any time.

SUBSIDIARIES OF PUNJAB NATIONAL BANK

PNB Gilts Ltd

A subsidiary of Punjab National Bank which was amongst the first ones to get the license for
undertaking activities in the Government Security market,as a primary dealer in 1996. The
company received ISO 9002 certification from British Standard Institution, making it as the first
primary dealer in India to achieve this certification for its quality systems and procedures.

PNB Housing Finance Ltd

This is a wholly owned subsidiary of Punjab National Bank, is engaged in providing housing
loans for purchase, construction and up gradation of a dwelling unit. The company offers Loans
for construction or for purchase of house/flat from development authorities and also from private
builders/ group housing societies as well as for renovation/ repairs. Company also provides
finance for construction of residential projects. Loans to NRIs are also provided for purchase/
construction of house/ flat along with a resident/ non-resident co-borrower.

PNB Capital Services Limited

Depositors of PNB CAPs to contact Chief Manager Bhikaiji Cama Place for further queries
regarding fixed deposits.

PNB Asset Management Company Ltd.

A wholly owned subsidiary of Punjab National Bank is the Investment Manager to PNB Mutual
Fund. As per the terms of trust deed, it has assumed day-to-day investment management of the
Fund and, in that capacity float schemes, raises subscription, makes investment decisions and
manages the Mutual Fund in accordance with the Fund's policies, scheme objectives, Trust Deed
and Investment Management Agreement.

OTHER PRODUCT AND SERVICES:

Merchant Banking

Under the Merchant Banking Portfolio, the Bank is acting as Bankers to Issues, Trusteeship and
Underwriting for which it is registered with the Securities and Exchange Board of India (SEBI).
The Bank handled 28 assignments as Banker to Issue and 122 payment assignments of Dividend
Warrants/Interest Warrants/Refund Orders during the financial year 2000-01. For the 6 months
period upto September 30 2001, 4 assignments of Bankers to Issue and 48 payment assignments
have been handled by the Bank. There are 24 existing Debenture Trustee Assignments of 14
Companies with a trusteeship amount of Rs. 517.76 crores. Bank is also providing Depository
Services and is the Depository Participant of National Securities Depository Ltd. As on 30th
September 2001, there were 10,740 Demat Accounts. The Depository Services are being
provided by 11 branches in Delhi and 8 branches in other parts of the country.
Foreign Exchange Business

The Bank through its network of 103 Authorized Branches, 43 Special Export Promotion
Branches and 40 Limited Authorization Branches, has been catering to Foreign Exchange
Business requirements of its customers. The Bank has established 10 international banking
branches at Delhi, Mumbai, Kolkata, Amritsar, Jalandhar, Ludhiana, Jaipur, Agra, Ahmedabad
and Morabadad in order to introduce concept of Single Window Banking and for providing
excellent services exclusively for exporter and importer clients. All these offices have been
accredited with ISO 9002 certification.

All branches authorized for handling Foreign Exchange Business have been provided with
modern infrastructure like Telex, Fax etc. while 75 branches have been provided with two way
SWIFT (Society for World wide Inter bank Financial Telecommunication) connectivity which is
the fastest mode available for transmission of financial message between the banks worldwide.
The Export and Import Turnover of the Bank has grown steadily over the years and it has
reached a level of Rs.10,761 crores upto September 30, 2001. The Bank has earned an income of
Rs.64.79 crores from the foreign exchange business upto September 30, 2001.

Non- Resident Deposits

Non- Resident Deposits of the Bank consist of Non- Resident Non-Repatriable (NRNR)
deposits, Foreign Currency Non-Resident (FCNR) Deposits, Non- Resident External (NRE)
Accounts, Non-Resident Special Resident (NRSR) Accounts, Non-Resident Ordinary (NRO)
Accounts. The total Non-Resident Deposits of the Bank have reached a level of Rs. 2,136.98
crores as on September 30, 2001.

Correspondent Relations

The Bank has a strong network of 204 correspondent banks spread over 81 countries. Rupee
Drawing Arrangements have been put in place with M/s. UAE Exchange Centre, UAE; Thomas
Cook Al Rostamani Exchange Co., UAE; Bahrain Exchange Company Kuwat; Bahrain Finance
Company, Bahrain; Musandam Exchange, Sultanate of Oman; Oman and UAE Exchange Co.,
Sultanate of Oman and Al-Fardan Exchange Company, Qatar to help Indian expatriated in these
countries to remit funds to India.
Overseas Operations

The Bank has equity participation to the extent of 20% in Everest Bank Ltd. (EBL), Kathmandu,
Nepal. The Bank is providing technical and other management services to EBL by deputing the
Bank’s personnel. EBL came under the Bank’s Management since January 1997 and has earned
a net profit of Nepalese Rupee (NPR) 6.97 crores during 2000-01 against a loss of NPR 1.10
crores during 1996-97. Deposits and advances of EBL which stood at NPR 17.0 crores and NPR
4.9 crores at the end of 1995-96, the year prior to commencement of the joint venture with the
Bank, has increased to NPR 457.45 crores and NPR 295.94 crores at the end of year July 2001
respectively.

Dealing Rooms

The Bank has integrated Rupee and Forex desks of the treasury and centralized inter-bank forex
desk at the corporate office. The new dealing room at New Delhi with state of the art technology
is well equipped for instantly netting foreign currency positions offloaded by different extended
arms and offer bigger lots in the inter-bank forex markets. The integration has helped the Bank to
exploit arbritage opportunities in rupee and forex market.

Gold Business

PNB commenced its Gold Business in the form of Gold Import Scheme in September 2000. The
scheme offers international quality gold for sale to the Bank’s clientele consisting of exporters
and others at competitive prices. The Gold Import Scheme is available at select branches in
seven centers – Delhi, Mumbai, Chennai, Ahmedabad, Jaipur, Amritsar and Ludhiana,
comprising of important bullion markets in India. The gold is procured from some of the leading
suppliers of precious metal. The Bank has achieved a turnover of Rs.1,134 crores upto March 31,
2001 and Rs.1,212 upto September 30, 2001mainly by providing various value added services
such as late hour dealing facility, door-to-door delivery of bullion, delivery of unfix price basis,
direct dealing facility, etc.

Credit Card Business

The Bank entered the credit card business in association with HSBC and launched the PNB
International Credit Card on November 24, 2000 under the MasterCard and Visa franchisee. The
co-branded credit card was launched in 14 cities representing major centers. The credit card
comes in two categories – Gold for high networth customers and Classic Card for other
individuals. So far, the Bank has issued over 28,000 cards and the product is being offered at 21
centers. The Bank uses its vast retail reach to collects applications and shares the revenues with
HSBC. Thereafter, the entire responsibility for processing the applications and collection of
credit card payments along with the credit risk is with HSBC.

The Bank has issued over 3 lakh credit cards in FY 2000-01 to farmers under the Kisan Krishi
Card Scheme to meet the financing needs of the farmers

Insurance Business

PNB has decided to enter into insurance business by participating in the insurance Joint Venture
("JV") with Zurich Financial Services, Switzerland, DCM Shriram Consolidated Limited and
Vijaya Bank as partners. The JV is proposed for three separate companies one each for life, non-
life insurance and a third for distribution and services company. Bank is expected to take up 26%
equity in all the three companies and invest a sum of Rs.61.88 crores. RBI has been approached
for its approval.

Centralised Banking Solution

The proposed Centralised Banking Solution will cover around 1500-2000 branches in 10-12
clusters covering Bank’s Major business centers including top 100 banking centers in the
country. The Centralised Banking Solution will take about 2-3 years for full implementation.
Centralised banking solution besides providing State of the Art value added services to the
customers would help in centralized and effective Management Information Systems. Pilot
implementation shall be done in 7 branches at Delhi and Mumbai and is expected to complete by
April 30, 2002.

Anywhere Branch Banking / Anytime Banking is proposed to be introduced at around 100

branches / ATMs in 4 metros and is expected to be implemented in around 6 months. The
branches and ATMs will be networked and the facility will enable Customers of these branches
to transact banking business from any of these 100 locations.

PNB'S Outlook

 Sales $2.32 billion

 Profits $.28 billion

 Assets $24.12 billion

 Market Value $2.79 billion

 Employees 58,689

Future Strategy

PNB plans to focus on the Hindi heartland - the states of Punjab, Haryana, Himachal, Uttranchal,
Bihar,Jharkhand and Rajasthan. The present CMD believes that the future of PNB is in rural/semi-urban
areas of northern and central India where PNB has a strong foothold and where competition is not as
intense as in metropolitan and urban areas

Future strategy to concentrate on rural/semi-urban regions of northern and central India: The

CMD believes that in order for the bank to survive and prosper in a competitive environment, PNB has
to focus on areas where the competition is less like in the prosperous rural/semi-urban hinterland of
northern and central India. In the metro and urban areas, competition is intense from more aggressive
new private banks, foreign banks and from other government banks. The competition is also likely to
intensify in these areas post FY2009 when foreign banks will be allowed more leeway. Therefore in such
a scenario, PNB has to be prepared for a highly competitive environment post FY2009 and has to also
modify its business model to focus on rural/semi-urban India and in northern and central India. Since
the advent of the new private banks, government banks have opted to copy the new private banks’
strategy without giving much thought on whether such a strategy would be sustainable for the
government bank model e.g thrust on mortgages in metropolitan India.

Promote financial inclusion as a national goal: In the post reform period (FY1991 onwards) while
economic growth increased, it had been achieved at the neglect of the masses, particularly in rural India
and virtual absence of investment in agriculture. As India's largest nationalized bank, PNB is well
positioned, especially in northern and central India to promote mass banking. The CMD believes that
technology and outsourcing (use of facilitators) can make mass banking profitable for commercial banks.
Technologies like biometric smart cards and core banking solution (CBS) branches and use of facilitators
(non-governmental organizations, self help groups, post offices, insurance agents and micro finance
institutions) can profitable promote financial inclusion. Agricultural lending - the next big trigger: The
central government has been emphasizing agricultural investment to improve on the dismal agricultural
GDP. Corporates are also showing more interest in agriculture via contract farming in horticulture,
fluoriculture and to support their retail ventures. Companies are meeting banks that have an extensive
presence in districts that historically had a strong presence in agriculture. Although contract farming has
had initial difficulties many state governments are enacting laws that would promote contract farming
so as to enhance agrarian GDP. Banks like PNB therefore would be a beneficiary of such a strategy as
corporates would prefer to deal with banks having a presence in these areas.

2.2 PROBLEM OF THE ORGANISATION

 Fewer locations as compared with HDFC and ICICI Bank

 Service delivery / Logistics perception is weak

 Negative Environment

 High interest rate as compared to others housing finance institution.

 Top management takes large amount of time to approve high value loan borrowers.
2.3 COMPETITION INFORMATION

 Canara Bank

Canara Bank has a can-do attitude about banking in India. One of India's largest banks, Canara Bank (also
known as CanBank) has a network of more than 2,500 branches throughout India and branches in Hong
Kong and London. All of Canara Bank's branches -- including those located in rural areas -- are
computerized, in a country where it is not a given that banks can make such a claim. (The bank considers
30% of its branches to be located in rural areas.) The modernization of all branches allows the bank to
offer its customers networked ATMs, telebanking, internet banking, and debit card services. Other
services include asset management and factoring. The financial institution is 73% owned by India's
government.

 ICICI BANK

ICICI Bank is India's #2 bank (after State Bank of India), with some 950 branches and 3,300 ATMs
nationwide. It also has locations in nearly 20 other countries. ICICI's retail banking group offers lending
and deposit services to small businesses and individuals. Larger businesses are served by the corporate
banking group, which offers finance services and treasury products. ICICI's rural and government
banking unit offers micro-loans and agricultural banking. Foreign operations, as well as services related
to international trade finance and expatriate Indians, fall under the international banking group. Other
ICICI offerings include online banking, asset management, and insurance.

 State Bank of India

State Bank of India is the nation's largest bank. Tracing its roots back some 200 years to the British East
India Company (and initially established as the Bank of Calcutta in 1806), the bank operates more than
14,000 branches within India, where it also owns majority stakes in seven associate banks. State Bank of
India has more than 50 offices in nearly 35 other countries, including multiple locations in the US,
Canada, and Nigeria. The bank has other units devoted to capital markets, fund management, factoring
and commercial services, and brokerage services. The Reserve Bank of India owns about 60% of State
Bank of India.
2.4 S.W.O.T Analysis

Business firms undertake SWOT analysis to understand the external and internal environment. SWOT,
which is the acronym for Strength, Weakness, Opportunities and Threats, is also known as WOT-UP
Analysis. Through such an analysis strength and weakness existing within an organization can be
matched with the opportunities and threats operating the environment so that an effective strategy can
be formulated. An effective organization strategy, therefore, is one that is capitalized on the
opportunities and through the use of strengths and neutralizes the threats maximizing the impact of
weakness.

Strengths:

 Well Reputed Bank

 Expanding into New Location

 Well-Covered Market in Delhi

 Competitive Products

 Relatively New Team

 Appraisal techniques are used.

Weaknesses:

 HDFC Bank, ICICI Bank, SBI Bank and Citibank dominate players in the Market

 Fewer locations as compared with HDFC and ICICI Bank

 Service delivery / Logistics perception is weak

 Negative Environment

 High interest rate as compared to others housing finance institution.

 Top management takes large amount of time to approve high value loan borrowers.

Opportunities:
  PNB can offer a complete relationship

 Advantage of large network over other bank’s

 Opportunity to pitch in for National and International convenience

 Special rates of interest are offered during exhibitions.

 Product life cycle is to be reviewed.

Threats:

 People looking for change (?)

 The competition in market is very high due to the private players.

 The rates of interest of other players are quite low.

 Innovative schemes from other players.

DEBIT CARD AND INTERNET BANKING

INTRODUCTION OF ATM

An automated teller machine (ATM) is a computerized telecommunications device that

provides the customers of a financial institution with access to financial transactions in a public
space without the need for a human clerk or bank teller. On most modern ATMs, the customer is
identified by inserting a plastic ATM card with a magnetic stripe or a plastic smartcard with a
chip, that contains a unique card number and some security information, such as an expiration
date or CVC (CVV). Security is provided by the customer entering a personal identification
number (PIN). They are sometimes incorrectly referred to as "ATM machines", a technically
redundant term.

Using an ATM, customers can access their bank accounts in order to make cash withdrawals (or
credit card cash advances) and check their account balances as well as purchasing mobile cell
phone prepaid credit. ATMs are known by various casual terms including automated banking
machine, money machine, bank machine, cash machine, hole-in-the-wall, cashpoint, Bancomat
(in various countries in Europe and Russia), Multibanco (after a registered trade mark, in
Portugal), and Any Time Money (in India).

ATMs first came into wide UK use in 1973; the IBM 2984 was designed at the request of Lloyds
Bank. The 2984 CIT (Cash Issuing Terminal) was the first true Cashpoint, similar in function to
today's machines; Cashpoint is still a registered trademark of Lloyds TSB in the U.K. All were
online and issued a variable amount which was immediately deducted from the account. A small
number of 2984s were supplied to a USA bank. Notable historical models of ATMs include the
IBM 3624 and 473x series, Diebold 10xx and TABS 9000 series, and NCR 5xxx series.

Punjab National Bank is in the process of creating a large network of ATMs in partnership with
individuals / organisatons willing to provide prominent space, install ATMs; take active interest in
increasing number of transactions on these ATMs and also to take care of ATM maintenance
besides development, upkeep and security of the site. The scheme is based on Revenue Sharing
model. The entity deploying ATMs hereinafter called “Participant” shall get revenue on per
transactions basis as defined in REVENUE’ clause.

SCOPE

Participation in the PNB is exclusively available to select Participants that Bank decides to enter
into a partnership with. The “Participant” selection and participation is the prerogative of the by
the bank.

USERS

Bank only, No correspondence shall be entertained from the

applicants not found suitable.

 PNB ATM / Debit / Credit / Smart card holders

 ATM / Debit Card holders of MITR / NFS member Banks.

 ATM / Debit Card holders of other banks with whom PNB has ATM sharing arrangement(s) or
enters in to from time to time.

 MasterCard enabled cards.

PARTICIPANT

A commercial organization / trust / or an individual which has/ arranges space with independent
access in a commercial / market / public place as found suitable for ATM deployment by Bank.
The roof rights should also be available in case V-SAT is required to be installed. Preference
shall be given to individuals.

ELIGIBILITY

The Participant should have space for installation of ATMs at Corporate outlets, shopping malls,
Cinema theatres, hospitals, petrol pumps, educational institutions etc., that are found suitable by
Bank for installation of ATM. The Participant should provide credentials to meet investment and
operational cost. Decision of the bank shall be binding and final.

TERMS AND CONDITIONS

Bank shall have the discretion to select or reject a particular site offered by the prospective
Participant, without assigning any reason.

REVENUE

The Participant will be entitled for per-successful-transaction income (Rs.11* for Cash
withdrawal & Rs.4* for Balance Enquiry) from the Bank. * Including Service Tax.
SUBMISSION OF APPLICATION FORM

In case the Participant is not able to submit details on-line he may send his application form
(available at our site www.pnbindia.com) at the following address. A Demand Draft / Pay order
of Rs. 1000/- in favour of “PUNJAB NATIONAL BANK”, payable at Delhi is required to be
submitted towards processing fee for each site by all applicants whether on-line(with
Registration No.) or through submission of application form. This processing fee shall be non-
refundable even if the bank does not consider his application. The last date for submission of
application is 30-10-2007.

The Chief
Punjab National Bank,
Back Office Operations Division, 4th Floor,
HO: 5,Sansad Marg, New Delhi – 110001.

OBLIGATIONS

The Participants agree that they bear obligations as mentioned herein.

 Preferably provide a comprehensive insurance of the ATM, ATM Site and other equipments.

 Provide security at ATM Site.

 The ATM shall be encumbrance free. Incase of attachment of ATMs, the Participant shall be
responsible for the cash that was lying in the ATMs.

 Marketing of the ATM services at local level in order to enhance usage of the services and its
revenue.

 Maintain over 99% of uptime of the services throughout the year.

 Ensure that site shall bear logo, display board, design, publicity material of PNB like any other ATM
owned by PNB.

 Allow the authorized personnel of the Bank including the external auditors, consultants etc. to visit
the ATM site.

 Pay service taxes and other applicable taxes.

 The Participants selected will enter in to an agreement for the purpose.

BANKS’ OBLIGATIONS

 Assist the Participant by providing the technical specifications and Banks’ approved rates for the
ATMs (selected models), ATM site preparation, Air conditioners and other equipments. The
Participant will procure the equipments as per technical specifications approved by the Bank.

 Monitor remotely each ATM for its functioning.

 Provide necessary connectivity for connecting the ATM to its ATM switch. All usage and other
charges relating to connectivity will be borne by the Bank.

 Monitoring and maintenance of the connectivity between the ATM and its ATM Switch.

 Provide and replenish cash at the ATM.

 Take care of the ATM card issuance / management related work and also handle its customer
queries and complaints pertaining to the Bank.

 Reconciliation & settlement of transactions shall be done by Bank

 Procure the necessary license / authentication from Reserve Bank of India.

 The authentication / license for ATM services shall be in the name of the Bank.

SERVICE ENGAGEMENT

Bank and the Participant shall enter into an agreement (including service level agreement) for
providing the ATM services. The service engagement shall be for 3 years period from the date of
launch of services at the designated site. After 3 years, the Bank may renew the contract on same
terms & conditions or buy back the ATMs along with site infrastructure at mutually agreeable
terms. The Participant shall not use the site for ATMs of other Bank, at least for one year after
termination of the contract.
In case of violation of any terms, bank can terminate the services and / or levy suitble penalty
commensurate with the quantum of loss(tangible or intangible) to the bank. Bank shall not be
responsible for loss, if any to the Participant on account of termination etc.

PNB INTRODUCES ADD-ON DEBIT CARD :-

Share the convenience of PNB Debit card with your loved ones .Simply gift them add-on card.

PNB Customers of CBS branches can get two add-on cards along-with his own Debit card. The
person you are gifting the card to does not necessarily have to be an account holder with PNB.

The add-on card can be issued in the name of spouse, dependent parents, and dependent children
not below 18 years.

The transactions done by add-on cardholders will automatically get debited to the account of the
primary cardholder who shall be responsible for all the transactions made by Add On card
holder/s.

For more details contact any of our CBS branches or All India helpline No 1800 180 2222(Toll
Free) or 0124-2340000(Accessible from mobile also)

To avail of the above facility visit any of our CBS branches.

Issuance of Debit Card from Call centre :-

"CBS branches customers of our Bank may also get PNB Debit Card simply by contacting our
All India Call Center over phone at the following no's :-
1800 180 2222 Toll free
0124-2340000 Accessible from mobile also.
The Card shall be delivered at their communication addess."
 Charges related to Issue of ATM/Debit Cards

Sr. No. Particulars of Charges Charges

1 ATM/ Debit Card issue charges Waived

2 ATM/ Debit Card annual fee (after first year) Rs.100/-

3 Charges for issue of Add on card Rs.50/-

Charges for issue of duplicate PIN (However, if the card has

4 not been used even once due to error in (printing of PIN, Rs.25/-
issue of duplicate PIN shall be free)

Charges for issue of duplicate ATM/Debit card/

5 Rs.100/-
Replacement of ATM/Debit card

Issue of ATM/Debit card with photograph of the

6 Rs.25/-
cardholder

*NOTE: In case customer do not want to use the debit card (after issuance) due to non-
acceptance of charges and get the card cancelled no charges will be levied.

Usage of ATM/Debit Cards

PNB’s ATM Debit Card is purely an on-line product. PNB has issued Maestro branded
International Debit Card in association of MasterCard Worldwide.
PNB Debit Card bears ‘Maestro’ logo on the front and ‘Cirrus’ logo on the back. The Debit
Cards can be used to withdraw cash from more than 1.25 millions ATMs globally having cirrus
logo & the card holders can make payments at more than 25 millions merchant locations
worldwide for shopping. Thus, it is thus an ATM-cum-Shopping Card.
Personal Identification Number (PIN) is the key security feature of the Debit Card. It is a four
digit numerical number.
PNB has also issued signature based Un-embossed ATM Shopping Cards in association with
MasterCard Worldwide with MasterCard Logo in front of it.
A few aspects of Bank’s Debit Card are highlighted as under:
 Valid in all Maestro and Cirrus Acceptance Marks.

 Acceptance in India at over 300000 “Maestro” Merchant locations and over 31000 ATMs
having Cirrus Logo.

 Wide acceptance at both Merchant Locations (including Utility bill payment) and ATM
locations across India

 A PIN (Personal Identification Number) based magnetic Stripe Card which provides the
safety and security to customers, while accessing their funds with the bank

 PIN can be changed and MINI Statement of the account can be taken from ATMs owned
by PNB and MITR Member Banks.

 Initially available to account holders of CBS branches that are networked

 The Card holders can withdraw cash up to a Limit of Rs. 25000 at ATMs and make
payments up to Rs. 40000 at point of sale (POS) at Merchant Establishment per day
subject to the availability of funds in the account.

 Card validity - Till the customer holds the account

 Bank has tied up with Reputed Corporate and Local Merchants to provide discounts on
usage of card for payment through Debit Card. Corporate from the entire spear are
covered, to quote few are like Escorts, Max Health Care, Apollo, Travel Gin, Cox and
Kings, Holyday INN, Hans, Park etc.
 ATM Sharing Arrangements

Revised charges applicable to Debit Card w.e.f. 01.02.2008

MITR Shared ATM Network:

The list of members under this arrangement:

1. Oriental Bank of Commerce

2. Indian Bank

3. Karur Vysya Bank Ltd.

4. IndusInd Bank

5. UCO Bank

6. Bank of Maharastra

Charges applicable:
Cash Withdrawal - Rs. 17/- per transaction
Balance Enquiry- NIL

National Financial Switch (NFS) ATM Sharing Arrangement:

The list of member banks under this arrangement:

1. Allahabad Bank
2. Andhra Bank
3. Axis Bank
4. Bank of Baroda
5. Bank of Maharashtra
6. Canara Bank
7. City Union Bank
8. Corporation Bank
9. Dena Bank
10. Development Credit Bank
11. HDFC
12. ICICI Bank
13. IDBI Bank
14. Indian Bank
15. Indian Overseas Bank
16. IndusInd Bank
17. Oriental bank of Commerce
18. Punjab National Bank
19. State Bank of India
20. Tamilnad Mercantile bank Ltd.
21. The Catholic Syrian Bank Ltd.
22. The Cosmos Cooperative Bank Ltd.
23. The Dhanlaxmi Bank Ltd.
24. The Jammu and Kashmir Bank Ltd.
25. The Karnataka Bank Ltd.
26. The Karur Vysya Bank Ltd.
27. The South Indian bank Ltd.
28. Union Bank of India
29. United bank of India.
30. Vijaya Bank
31. YES Bank Ltd.

Charges applicable:
Cash Withdrawal - Rs. 20/- per transaction
Balance Enquiry- NIL

Branches eligible to issue Debit Cards:

Initially Debit Cards are issued to the customers of CBS branches only. All the CBS branches are
eligible to issue Debit Cards to their customers
Who are eligible for PNB Debit Card:

All existing customers who are maintaining minimum balance and who regularly operate their
account are eligible for the issuance of Debit Card. New customers, who open their accounts
after introduction, are also eligible for the issue of Debit Cards at the time of opening the account
itself.

Debit Card facility shall be extended to the individual customers only, having Savings Bank
Account and Current Account. Debit cards shall also be issued to individual customers having
overdraft facility, which is in the nature of a personal loan. This shall mean and include personal
loans extended to individual customers in the form of a regular overdraft limit such as clean
overdraft facility or overdraft facility against FD/NSCs/LICs etc. where operations through
cheques are permitted.
Debit Card can be issued in Joint Accounts with “Either or Survivor”/”Former or Survivor”
mandate. In “Either or Survivor” accounts, cards can be issued to both the account holders
whereas in “Former or Survivor” accounts card can be issued only to the Former. In joint
Accounts where account has to be jointly operated Debit Card shall not be issued unless mandate
for operation of account is changed to “Either or Survivor” or “Former or Survivor” basis.
4.1 SIGNIFICANCE

 To weed out unviable projects from obtaining bank finance to provide objective feedback to the
competent authority for taking a Considered Decision.

 To know the type of bank account preferred by people.

 To know about the experience of customers by the current bankers

 To know all the factors influencing choice of banking

 The Appraisal also signifies the present state of affairs of industry, demand & supply, marketing
scenario, Regulatory requirements as well as national & International state of affairs of that
particular product/ industry.

 The Appraisal also signifies a proper format in which any credit & project appraisal to be placed
before the final decision takers.

4.2 MANAGERIAL USEFULNESS OF THE STUDY

 To study Impact on increase in level of savings and income distribution in society and standard
of living.

 The study provides a complete knowledge of various fundamental concept related to services
provided by the bank.

 The study helps in finding the weaknesses, if any in the services and the steps taken to avoid
them.

 The suggestions to the Branch Managers will help management to make changes in the desired
field.
4.3 OBJECTIVES

This project is a compilation of the work that is taken up by a financial Institution while financing an
industrial project. The basic theme of the study is:

 To check the awareness about ATM AND Internet banking facility.

 To know the problem which people are facing from these services.

 To know about the experience of customers by the current bankers.

 To know all the factors influencing choice of banking.

 Familiarization with the services provided by PNB.

 To study the features of modern banking which will give a good idea of various services offered by
today’s bank and understand the latest banking concepts.

4.4 SCOPE

 Scope of the study is to collect information regarding the account opening and ATM facility
provided by the bank

 To analyze the level of satisfaction of the customer in respect to the services.

 To know how many people prefer banking with the bank.

4.5 METHODOLOGY

The study adopted in the project is exploratory that makes use of ample amount of data to arrive at the
conclusions. It does so by paying equal attention to both quantitative as well as qualitative data. This
data is of extreme help as almost all the steps of the study are dependent on the reliability & accuracy of
this data. Care has been taken to; ensure that these figures are foolproof.
Data used to analysis the services in PNB was of primary and secondary .The primary data has been
collected through questionnaires. The secondary source included brochures, annual reports, magazines,
employee’s handbook, magazines and journals.

DATA SOURCES

Primary Data:

It is a fresh data which is collected by the researcher himself. The primary data that I collected
were the first hand information, which I received through personal interviews with the
consumers and through questionnaires. This data gave the most vital information for making my
analysis of the prevailing banking behavior of the consumers

Secondary Data:

It is data which is already present in the records and is collected by someone else. Secondary
data involved in my research were the information that I collected through the Punjab National
Bank’s Internet service and through the various brochures and pamphlets of the bank.

Questionnaire Design

Questionnaires are one of the most important and commonly used research instruments to collect
primary data.

It is self-administered process whereby the respondent himself reads the questions and records
his answers without the assistance of an interviewer

Multiple choice questions were asked from the interviewer as it consumes less time and gives us
the exact answers. The main objective of choosing such question was to extract the clear picture
from the customers like what they actually expect from a good banking system.

TOOLS:-

 Pie chart
 Bar diagram

 Text and statements

SAMPLE DESIGN

 Sample element: The members selected from the population for doing the survey
constitute the sampling element. A sample of 50 customers was taken as a sample
element.

 Extent: The survey was conducted in the Delhi region only.

 Time frame: Total time duration for the survey took almost two months.

 Sample size: 50 was the sample size of the survey.

LIMITATIONS

As said a basic research was conducted at the bank to assess how far that customers are satisfied with
products and services of PUNJAB NATIONAL BANK, Delhi. During the course of the study the following
limitation were observed:

 The method will be unsuitable if the number of people to be surveyed is very less as it will be diffcult
to draw logical conclusions regarding the satisfication level of customers.

 Interpretation of data may vary from individual depending on the individual understanding of the
product features and services of the bank.

 The method lacks flexibility. Incase of inadequate or incomplete information the results may
deviate.

 Since all the financial products and services are not widely used by all the customers it is difficult to
draw realistic conclusions based on the survey.

 It is very difficult to check the accuracy of the information provided.

INTERNET BANKING

What is Internet Banking?

You can do banking using Internet as medium. It is available 24 hours a day, 365 days a year and you can
operate your account anytime / anywhere at your convenience. You need a PC with minimum PII
processor, 32 MB RAM with Internet Explorer 5.0 or above. You need to have an account at any of our
CBS (Centralize Banking Solution) branch. Then you need to register for the Internet Banking Services
with the branch by filling our request form. We shall be sending you the passwords at the address given
by you in the request form with the user guide and acknowledge letter. Please submit the
acknowledgement letter and collect your user-id and password, please logon to www.pnbindia.com
using the user-id and password in your possession to access your account information. During the first
login, you have to change passwords. Kindly download the request form, fill in the details and submit it
to your branch. After authentication of your particulars your registration formalities will be completed.

User - id and password will be generated in a secure environment. Passwords will be couriered
at the address specified by you in the request form and to ensure the highest security and safety
you have to collect your user-id from your concerned branch. While collecting user-id from the
branch, please submit the acknowledgement letter duly signed in the branch.The machine
generates User-id and passwords for your first time access randomly and we have no control
over it. It is mandatory to define your own passwords at first login. It is mandatory for you to
change the machine-generated passwords with your own convenient passwords at first login.
Later on at any time you can change your passwords but not the user-id. Passwords can be
changed any time and any number of times. In fact we recommend it should be changed often to
secure your access to your accounts through Internet. Please ensure to use at least one special
character (like @, #, $ etc) in your password otherwise system will not accept your passwords.
You are requested to choose a password that is not a dictionary word and not guessable from
your personal information known to others such names in the family, vehicle numbers etc. You
should change your password frequently. Please try to remember the password and do not write
it down or paste it somewhere. Last but not the least does not divulge your password to anybody
even if they claim to be from the bank. Nothing to worry. Just click on "forgot password" at the
login page and print the request form. After printing, fill in all desired information and submit
the form in the Branch. We in turn will send you new passwords.If you forget the username for
Internet Banking Services, kindly contact your branch.

I am unable to login with the couriered Password and allotted User-id.

Passwords are case sensitive. Kindly be a little more careful while typing the system-
generated passwords for the first time.

It may that your Internet Banking account has not been activated. Please attempt logging in after 24
hours of your submitting acknowledgement .If the problem persists please get in touch with the branch.
Please check the cipher strength of your system. You may check cipher strength of your computer by
clicking "About Internet Explorer" in the "Help" menu option of Internet Explorer. If it does not show
cipher strength of 128-bit then please update the same by clicking "Update Information" button. Yes,
provided you do not disclose your passwords and logout in proper way. Please ensure to logout in
proper way. However, if you abruptly close your Internet Banking page, your session will end. Kindly do
not leave your system in between doing Internet Banking, as this will give opportunity to others around
you to operate your accounts. Accounts maintained by you in any of the CBS branches can be attached
to your existing Internet Banking Services. You may submit your request at any of the CBS branches
where you have accounts. Standard format for this request is also available on the login page under Add
more Accounts.

How can contact the helpdesk of Internet Banking?

011-23765434 e-mail: itdibs@pnb.co.in

I am getting a message "You are viewing this page due to the following reasons" while I am
working on The Internet Banking site.

It is likely that your system has been idle for long.

It is also possible that your Internet connection is slow and the session gets timed out.

The services may be down from our end. In this case you may please try after a few minutes. After
logging in, click on transfers. You have 2 options
1. Transfer funds between your own accounts.
2. Transfer funds to other accounts.
If you have chosen option 1 then you are shown a list of credit & debit accounts. You may choose the
relevant account and click on Transfer button.
If you have chosen option 2 then you are shown a list of your own accounts to be debited. You are
expected to type the 16-digit beneficiary account number and click on Transfer Button. In both cases to
complete the transaction you would be prompted for user id and transaction password. It is
recommended that both passwords are different so that there is no possibility of misuse.

I just made an ATM transaction but show balance is not reflecting the same. In order to view your
current balance you may click on Online Details. Show Balance would reflect balance as on the start of
ant given day. Railway Ticketing: In order to use this you will have to log on to www.irctc.co.in, plan
your journey, choose make payments, and choose PNB as the payment channel. Thereafter you will be
prompted for your Internet Banking user id and password. Airline Ticketing, Telephone bill payment etc
would the other services in the near future. Currently Internet Banking services are available for free.
However it may be understood that for fund transfer between accounts of different branches, the
charges applicable as in the case of normal transactions would be levied. As regards to Railway Ticketing
services, presently there are no charges levied by the Bank. Practically all accounts can be provided with
an Internet Banking user id. Loan accounts, FD Accounts, Deposit Accounts. If your accounts are in CBS
branches and if you have the same customer id then automatically all accounts would be displayed by a
single Internet Banking user id. However if you have accounts in different customer ids, you may
request that the other account also be attached to your Internet Banking user id. In case the account is
of the individual accounts of the same person, it is better to have a single user id so that all accounts
can be monitored in one shot. If you have joint account & individual accounts you may opt for separate
user ids.

"Terms and conditions for Internet Banking Subscribers - (For Individuals / Sole Proprietorship)

1. Definitions In this document the following words and phrases have the meaning set opposite them
unless the context indicates otherwise: BANK refers to Punjab National Bank, its successors and assigns,
a body corporate constituted in India under the Banking Companies (Acquisition and Transfer of
Undertakings) Act No. 5 of 1970 and having its Head Office at

7, Bhikhaiji Cama Place,

New Delhi-110066.

USER refers to a customer of the BANK authorised to use Internet Banking Services. Internet Banking
Account refers to the USER's Savings and/ or Current Account and/ or any other type of account so
designated by the BANK to be eligible account(s) for operations through the use of Internet Banking
Channel.

PERSONAL INFORMATION refers to the information about the USER obtained in connection with the
Internet Banking Service. TERMS refer to Terms and Conditions for use of Internet Banking Services as
specified in this document.

1. Applicability of TERMS These TERMS form the contract between the USER using the Internet
Banking services and the BANK. By applying for Internet Banking Services and accessing the
service the USER acknowledges and accepts these TERMS. Any conditions relating to the
accounts of the customer other than these TERMS will continue to apply except that in the
event of any conflict between these TERMS and the account conditions, these TERMS will
continue to prevail. The agreement shall remain valid until it is replaced by another agreement
or terminated by either party or the account is closed , whichever is earlier.

2. Requirement of Minimum Balance the USER shall maintain, at all times, such minimum balance
in Internet Banking account(s), as the BANK may stipulate from time to time. The BANK may, at
its discretion, levy penal charges for non-maintenance of the minimum balance. The BANK may
withdraw the Internet Banking Services facility, if at any time the amount of deposit falls short
of the required minimum as aforesaid and/ or if the other charges remain unpaid, without
giving any further notice to the USER and/ or without incurring any liability or responsibility
whatsoever by reason of such withdrawal.

3. Funds Transfer the USER shall not use or attempt to use Internet Banking Services for funds
transfer - as and when the facility is made available - without sufficient funds in the relative
Internet Banking Services -account or without a pre-existing arrangement with the Bank for the
grant of an overdraft The BANK will endeavor to effect such funds transfer transactions received
through Internet Banking Services provided there are sufficient funds available in the User’s
account. The BANK shall not be liable for any omission to make all or any of the payments or for
late payments due to circumstances beyond the reasonable control of the Bank the event of
 overdraft created due to oversight/inadvertently, the USER will be liable to pay the interest on
such over drawn amount, as decided by the BANK from time to time.

4. Authority to the Bank Banking transactions in the User's account(s) are permitted through
Internet, only after authentication of the User-id and password of the USER. The USER
(alongwith the joint account holder, if any) grants express authority to the BANK for carrying
out the banking transactions performed by him through Internet Banking Services. The BANK
shall have no obligation to verify the authenticity of any transaction received from the USER
through Internet Banking Service or purporting to have been sent by the USER via Internet
Banking Services, other than by means of verification of the User-id and the password.The
display or printed output that is generated by the USER at the time of operation of Internet
Banking Services is a record of the operation of the Internet access and shall not be construed
as the Bank's record of the relative transactions. The Bank's own records of transactions
maintained through computer systems or otherwise shall be accepted as conclusive and binding
for all purposes. All transactions arising from the use of Internet Banking Services to operate a
joint account, shall be binding on all the joint account holders, jointly and severally,
notwithstanding that one amongst such joint account holders only operates the accounts
through Internet Banking Services.

5. Accuracy of Information the USER is responsible for the correctness of information supplied to
the BANK through the use of Internet Banking Services or through any other means such as
electronic mail or written communication. The BANK accepts no liability for the consequences
arising out of erroneous information supplied by the USER. If the USER suspects that there is an
error in the information supplied to the BANK by him, he shall advise the BANK at the earliest.
The BANK will endeavor to correct the error wherever possible on a 'best efforts' basis. If the
USER notices an error in the account information supplied to him through Internet Banking
Service, he shall advise the BANK at the earliest. The BANK will endeavor to correct the error
promptly and adjust any interest or charges arising out of the error.

6. Liability of the USER and the BANK If the USER has complied with the TERMS and advises the
BANK in writing under acknowledgment of an authorized person of the Bank, immediately after
he/she suspects that his/her User-id or password is known to another person and/ or notices an
unauthorized transaction(s) in his account, he/she shall not be liable for losses arising out of the
unauthorized transaction(s) occurring in the accounts after the receipt of such advice by the
 BANK.The USER shall be liable for some or all loss from unauthorized transactions in the
account(s) if he/she has breached the Terms and conditions or contributed or caused the loss by
negligent actions such as the following:In disclosing or failing to take all reasonable steps to
prevent disclosure of the User-id and/or password to anyone including BANK staff and/ or
failing to advise the BANK of such disclosure within a reasonable time Not advising the BANK in
a reasonable time about unauthorized access to or erroneous transactions in the account(s)
through the Internet Banking Services The BANK shall not be liable for any unauthorized
transaction(s) occurring through the use of Internet Banking Services which can be attributed to
the fraudulent or negligent conduct of the USER. The BANK shall not be liable to the account
holder(s) for any damages whatsoever whether such damages are direct, indirect, incidental,
consequential and irrespective of whether any claim is based on loss of revenue, investment,
production, goodwill, profit, interruption of business or any other loss of any character or
nature whatsoever and whether sustained by the account holder(s) or any other person, if
Internet Banking Services access is not available in the desired manner for reasons including but
not limited to natural calamity, floods, fire and other natural disasters, legal restraints, faults in
the telecommunication network or Internet or network failure, software or hardware error or
any other reason(s) beyond the control of the BANK. The Bank shall endeavor to take all
possible steps to maintain secrecy and confidentiality of its customers' account(s) but shall not
be liable to the account holder(s) for any damages whatsoever caused on account of breach of
secrecy/ confidentiality due to hacking or technological lapses in the system. The bank shall not
be liable for any loss due to unauthorized transfer of funds through hacking etc.

7. Indemnity: The USER shall indemnify and hold the BANK harmless against any loss suffered by
the BANK, if any claim or action brought by a third party which is in any way the result of the
improper use of Internet Banking Services by the USER.

8. Disclosure of PERSONAL INFORMATION The USER agrees that the BANK or its contractors may
hold and process his PERSONAL INFORMATION on computer or otherwise in connection with
Internet Banking Services as well as for statistical analysis and credit scoring. The USER also
agrees that the BANK may disclose, in strict confidence, to other institutions, such PERSONAL
INFORMATION as may be reasonably necessary for reasons inclusive of, but not limited to, the
following: · for participation in any telecommunication or electronic clearing network · in
compliance with a legal directive · for credit rating by recognized credit rating agencies for fraud
prevention purposes.