INTRODUCTION TO BANKING IN INDIA Banking in India originated in the last decades of the 18th century.

The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1790; both are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India.

HISTORY OF BANKING IN INDIA 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 dials 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- Post Independence 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 Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, 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- Nationalization Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it 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 crore. After the nationalization of banks, the branches of the public sector bank India rose 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 about the sustainability of these institutions. Phase III -Liberalization 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.

SCHEDULED COMMERCIAL BANKS IN INDIA

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. As on 30th June, 1999, there were 300 scheduled banks in India having a total network of 64,918 branches. 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. "Scheduled banks in India" means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act,1959 (38 of 1959), a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of1980), or any other bank being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), but does not include a co-operative bank". "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): 1. State Bank of India 2. State Bank of Bikaner and Jaipur 3. State Bank of Hyderabad 4. State Bank of Indore 5. State Bank of Mysore 6. State Bank of Saurashtra 7. State Bank of Travancore 8. Andhra Bank 9. Allahabad Bank 10. Bank of Baroda 11. Bank of India 12. Bank of Maharashtra 13. Canara Bank 14. Central Bank of India 15. Corporation Bank 16. Dena Bank 17. Indian Overseas Bank 18. Indian Bank 19. Oriental Bank of Commerce 20. Punjab National Bank 21. Punjab and Sind Bank 22. Syndicate Bank 23. Union Bank of India 24. United Bank of India 25. UCO Bank 26. Vijaya Bank The following are the Scheduled Banks in India (Private Sector): 1. ING Vysya Bank Ltd

2. Axis Bank Ltd 3. Indusind Bank Ltd 4. ICICI Bank Ltd 5. South Indian Bank 6. HDFC Bank Ltd 7. Centurion Bank Ltd 8. Bank of Punjab Ltd 9. IDBI Bank Ltd

The following are the Scheduled Foreign Banks in India: 1. American Express Bank Ltd. 2. ANZ Gridlays Bank Plc. 3. Bank of America NT & SA 4. Bank of Tokyo Ltd. 5. Banquc Nationale de Paris 6. Barclays Bank Plc 7. Citi Bank N.C. 8. Deutsche Bank A.G. 9. Hongkong and Shanghai Banking Corporation 10. Standard Chartered Bank. 11. The Chase Manhattan Bank Ltd. 12. Dresdner Bank AG.

BANKING SERVICES IN INDIA With years, banks are also adding services to their customers. The Indian banking industry is passing through a phase of customers market. The customers have more choices in choosing their banks. A competition has been established within the banks operating in India. With stiff competition and advancement of technology, the services provided by banks have become more easy and convenient. The past days are witness to an hour wait before withdrawing cash from accounts or a cheque from north of the country being cleared in one month in the south. This section of banking deals with the latest discovery in the banking instruments along with the polished version of their old systems. BANK ACCOUNT This is most common and first service of the banking sector. There are different types of bank account in Indian banking sector. The bank accounts are as follows:

Bank Savings Account - Bank Savings Account can be opened for eligible person / persons and certain organizations / agencies (as advised by Reserve Bank of India (RBI) from time to time)

Bank Current Account - Bank Current Account can be opened by individuals / partnership firms / Private and Public Limited Companies / HUFs / Specified Associates / Societies / Trusts, etc.

Bank Term Deposits Account - Bank Term Deposits Account can be opened by individuals / partnership firms / Private and Public Limited Companies / HUFs/ Specified Associates / Societies / Trusts, etc.

Bank Account Online - With the advancement of technology, the major banks in the public and private sector has faciliated their customer to open bank account online. Bank account online is registered through a PC with an internet

connection. The advent of bank account online has saved both the cost of operation for banks as well as the time taken in opening an account. PLASTIC MONEY Credit cards in India are gaining ground. A number of banks in India are encouraging people to use credit card. The concept of credit card was used in 1950 with the launch of charge cards in USA by Diners Club and American Express. Credit card however became more popular with use of magnetic strip in 1970.Credit card in India became popular with the introduction of foreign banks in the country. Credit cards are financial instruments, which can be used more than once to borrow money or buy products and services on credit. Basically banks, retail stores and other businesses issue these. LOANS Banks in India with the way of development have become easy to apply in loan market. The following loans are given by almost all the banks in the country:

Personal Loan
Car Loan or

Auto Loan

Loan against Shares Home Loan Education Loan or Student Loan

In Personal Loan, one can get a sanctioned loan amount between Rs 25,000 to 10, 00,000 depending upon the profile of person applying for the loan. SBI, ICICI, HDFC, HSBC are some of the leading banks which deals in Personal Loan. Almost all the banks have jumped into the market of car loan which is may also sometimes term as auto loan. It is one of the fast moving financial products of banks. Car loan / auto loan are sanctioned to the extent of 85% upon the ex-showroom price of the car with some simple paper works and a small amount of processing fee. Loan against shares is very easy to get because liquid guarantee is involved in it.
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Home loan is the latest craze in the banking sector with the development of the infrastructure. Now people are moving to township outside the city. More number of townships is coming up to meet the demand of 'house for all'. The RBI has also liberalized the interest rates of home loan in order to match the repayment capability of even middle class people. Almost all banks are dealing in home loan. Again SBI, ICICI, HDFC, HSBC are leading. The educational loan rather to be termed as student loan, is a good banking product for the mass. Students with certain academic brilliance, studying at recognized colleges/universities in India and abroad are generally given education loan / student loan so as to meet the expenses on tuition fee/ maintenance cost/books and other equipment. MONEY TRANSFER Beside lending and depositing money, banks also carry money from one corner of the globe to another. This act of banks is known as transfer of money. This activity is termed as remittance business. Banks generally issue Demand Drafts, Banker's Cheques, and Money Orders or other such instruments for transferring the money. This is a type of Telegraphic Transfer or Tele Cash Orders.

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PUNJAB NATIONAL BANK

... the name you can BANK upon!

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

Mission
Banking for the Unbanked.

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Introduction of Punjab National Bank Punjab National Bank (PNB) was founded in 1894 and today is the second largest stateowned commercial bank in India with about 5000 branches across 764 cities. It serves over 37 million customers. The bank has been ranked 248th biggest bank in the world by the Bankers Almanac, London. The bank's total assets for financial year 2007 were about US$60 billion. PNB has a banking subsidiary in the UK, as well as branches in Hong Kong, Dubai and Kabul, and representative offices in Almaty, Dubai, Oslo, and Shanghai. Punjab National Bank is one of the Big Four banks of India, along with ICICI Bank, State Bank of India and HDFC Bankits main competitors.

HISTORY OF THE BANK Punjab National Bank (PNB) was registered on May 19, 1894 under the Indian Companies Act with its office in Anarkali Bazaar Lahore. The Bank is the second largest government-owned commercial bank in India with about 4,500 branches across 764 cities. It serves over 37 million customers. The bank has been ranked 248th biggest bank in the world by Bankers Almanac, London. PNB has a banking subsidiary in the UK, as well as branches in Hong Kong and Kabul, and representative offices in Almaty, Dubai, Oslo, and Shanghai.

1895: PNB commenced its operations in Lahore. PNB has the distinction of being the first Indian bank to have been started solely with Indian capital that has survived to the present. (The first entirely Indian bank, the Ouch Commercial Bank, was established in 1881 in Faizabad, but failed in 1958.) PNB's founders included several leaders of the Swadeshi movement such as Dyal Singh Majithia and Lala HarKishen Lal,[1] Lala Lalchand, Shri Kali Prosanna Roy, Shri E.C.

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Jessawala, Shri Prabhu Dayal, Bakshi Jaishi Ram, and Lala Dholan Dass. Lala Lajpat Rai was actively associated with the management of the Bank in its early years.

1904: PNB established branches in Karachi and Peshawar. 1940: PNB absorbed Bhagwan Dass Bank, a scheduled bank located in Delhi circle. 1947: Partition of India and Pakistan at Independence. PNB lost its premises in Lahore, but continued to operate in Pakistan. 1951: PNB acquired the 39 branches of Bharat Bank (est. 1942) Bharat Bank became Bharat Nidhi Ltd. 1961: PNB acquired Universal Bank of India. 1963: The Government of Burma nationalized PNB's branch in Rangoon (Yangon). September 1965: After the Indo-Pak war the government of Pakistan seized all the offices in Pakistan of Indian banks, including PNB's head office, which may have moved to Karachi.PNB also had one or more branches in East Pakistan (Bangladesh).

1960s: PNB amalgamated Indo Commercial Bank (est. 1933) in a rescue. 1969: The Government of India (GOI) nationalized PNB and 13 other major commercial banks, on July 19, 1969. 1976 or 1978: PNB opened a branch in London. 1986 The Reserve Bank of India required PNB to transfer its London branch to State Bank of India after the branch was involved in a fraud scandal.

1986: PNB acquired Hindustan Commercial Bank (est. 1943) in a rescue. The

acquisition added Hindustan's 142 branches to PNB's network.

1993: PNB acquired New Bank of India, which the GOI had nationalized in 1980.

1998: PNB set up a representative office in Almaty, Kazakhstan.

2003: PNB took over Nedungadi Bank, the oldest private sector bank in Kerala.

Rao Bahadur T.M. Appu Nedungadi, author of Kundalatha, one of the earliest novels in Malayalam, had established the bank in 1899. It was incorporated in 1913, and in 1965 had acquired selected assets and deposits of the Coimbatore
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National Bank. At the time of the merger with PNB, Nedungadi Bank's shares had zero value, with the result that its shareholders received no payment for their shares. PNB also opened a representative office in London.

2004: PNB established a branch in Kabul, Afghanistan. PNB also opened a representative office in Shanghai. PNB established an alliance with Everest Bank in Nepal that permits migrants to transfer funds easily between India and Everest Bank's 12 branches in Nepal.

2005: PNB opened a representative office in Dubai. 2007: PNB established PNBIL - Punjab National Bank (International) - in the UK, with two offices, one in London, and one in South Hall. Since then it has opened a third branch in Leicester, and is planning a fourth in Birmingham. Gatin Gupta became Chairmen of Punjab National Bank.

2008: PNB opened a branch in Hong Kong. 2009: PNB opened a representative office in Oslo, Norway 2010: PNB received permission to upgrade its representative office in the Dubai International Financial Centre to a branch

Current Financial status:

Total business worth Rs.5.55 lakh Crore.

Global deposits of 3, 06,913 crore. Net Advances worth 2, 26,586 crore. Net Interest surges by 39.3%. Net interest margin improves to 3.96%.
Net profit records 13.5% growth, reaching Rs.4433 Crore. Operating profit grows by 23.6%, touching Rs.9056 crore.

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JOURNEY OF PUNJAB NATIONAL BANK

Since its humble beginning in 1895, PNB has achieved significant growth in business which at the end of March 2011 crossed Rs.5.55 lakh crore. Today, with assets of Rs.246919 crore, PNB is ranked as the 3rd largest bank in the country (after SBI and ICICI Bank). With 5017 offices including extension counters, the Bank has the largest network of offices amongst nationalized banks. During the year 2008-09 the number of branches increased by 163 branches. During the FY 2010-11, Punjab National Bank has maintained its number one among the Nationalized Banks in terms of assets, total deposits, advances and total business. PNB has always looked at technology as a key facilitator to provide better customer service and ensured that its IT strategy follows the Business strategy so as to arrive at Best Fit. The bank has made rapid strides in this direction and achieved 100% branch computerization Punjab National Bank was the first bank in India to introduce CBS on Finacle. During FY09 PNB achieved the landmark of having ALL branches networked with Core Banking Solution (CBS), thereby becoming the FIRST Nationalized bank to achieve this milestone. Now more than 38 million PNB customers spread across 2560 centers in the country enjoy the facility of one bank - one account. The Finacle application is running on single instance database and it is the largest combination with 24000 concurrent users in the world Finacle core banking platform also provides the bank with exceptional agility for product innovation and improved flexibility of operations. With seamless integration of delivery channels such as ATM and internet banking solutions, PNB is able to provide 24X7 services to customers at a reduced transaction cost. PNB has implemented CBS in all the service outlets to facilitate "anytime, anywhere" banking to its clients. The bank has also been offering Internet banking services to the customers of CBS branches like booking of tickets, payment of bills of utilities, purchase of airline tickets etc.

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Towards developing a cost effective alternative channels of delivery, the bank has installed 5110 ATMs. Under ATM sharing arrangement, Banks customers can access to any other bank. Backed by strong domestic performance, the bank has expanded its business into global arena. Bank has presence in 8 countries: branches at Kabul and Hong Kong and Representative Offices at Almaty, Dubai, Shanghai and Oslo. With the opening of the Representative Office at Oslo, PNB becomes the First Indian bank to have presence in whole Scandinavian belt. In addition Bank has a subsidiary (PNBIL) in UK with 4 branches, one each at Southall, Gresham Street London, Leicester and Birmingham. The subsidiary earned profit during first year of its operation. The Bank also has a Joint venture with equity and Management Participation with Everest Bank Ltd., Nepal. With PNBs management, EBL has become one of the leading banks in Nepal. As a tribute to its consistent business growth, improved assets & attractive returns to shareholders in the joint venture, PNB has won Bank of the Year Award in Nepal (2006) by The Banker, a publication of the London based Financial Times. Bank has in place RBI approval for opening a Subsidiary in Canada, an Offshore Banking Unit in Singapore and a branch at DIFC, Dubai. Bank has also finalised a joint venture Bank in Bhutan with local partners. The Bank also plans to upgrade its Representative Offices in Norway and Shanghai to branches. To have an effective mechanism for security of all information assets across the Bank, proposed to establish a world class Security Operations Centre (SOC) which will be first of its kind for any Indian Bank. Bank has obtained ISO 27001: 2005 Certification for Data Centre, Network Operation Centre and Disaster Recovery Data Centre for CBS from BSI, India (Subsidiary of British Standards Institute). Bank proposes to bring all sponsored RRBs in Core Banking Solution by 2010. Process started with the migration of the first RRB branch in March09.

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ORGANSITIONAL STRUCTURE OF PUNJAB NATIONAL BANK

HEAD OFFICE 7BHAIKHAJI CAMA PALACE, NEW DELHI-66

CIRCLE OFFICES
=65

Branches=5017

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AWARDS AND DISTINCTIONS

Top Indian Company under Banks category - Dun & Bradstreet Earned 9th place among India's Most Trusted top 50 service brands in Economic Times- A.C Nielson Survey.

Wind Power India 2011 Awards under the category of "Best Wind Power Project Financier" 2011 by World Institute of Sustainable Energy Ranked as 24th best company amongst top 500 Indian Cos.- Economic Times Best Corporate Social Practice 2011- BSE ( 2nd year in a row) Included in the top 1000 banks in the world according to The Banker, London. Golden Peacock Award for Excellence in Training- 2010 by Institute of Directors. Received RBI Rajbhasha Award from Dr. D.Subbarao, Governor, and RBI. Adjudged Best Managed Bank by SCOPE Won Second Prize under the category of "Best Wind Power Project Financier" 2011 by World Institute of Sustainable Energy.

PNB Awarded SKOCH Challenger Award 2011 on Financial Inclusion Awarded Best Technology Bank 2010 PNB Received Excellent Performance in Lending Under PMEGP Scheme award Outlook Money Award for the year 2010 for "Best Home Loan Provider Outlook Money Award for the year 2010 for "Best Education Loan Provider" 3rd biggest financial co. & 5th fastest growing bank for 2010 -Business World 5th Social and Corporate Governance Award Under the Category of "Best Corporate Social Responsibility Practice" By Bombay Stock Exchange for 2010
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Skoch Awards 2010 for "Computerization of RRBs" By Skoch for 2010 Global HR Excellence Award 2010 for the outstanding Contribution to the cause of Education by World HRD Congress.

Asia Best Employer Brand Award" for Excellence in Training By World HRD Congress for 2010

Award for Brand Excellence" under Banking & Financial Services By CMO Asia for 2010

Outlook Money Award for the year 2010 for "Best Home Loan Provider India Pride Award by Dainik Bhaskar and Daily News analysis for Excellence in PSU 2009 Indira Gandhi Rajbhasha Shield for Promoting Hindi 2009

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SWOT Analysis of Punjab National bank Strength

Fundamentally sound bank 3.7 Crore strong customer base Well-entrenched Brand Image Dominant position in Indo-Gangetic Plain No competition A leader amongst Public Sector Banks High proportion of customer base in deposits Strong Risk Management Practices Redefined processes through technology initiatives like CBS, ATM, Internet Banking 100% CBS branches High tech platform incorporating EDW, CRM etc. Large network of branches with 66% in Rural & Semi-urban areas

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Weakness
Predominant presence in less developed areas leading to high operating cost Complacency (Structural & Environmental) Weak & Inconsistent MIS rendering decision making difficult Limited International presence. Low NRI business More dependence on conventional low margin business No Income from Financial Products such as Insurance, Mutual Fund, Credit Card etc. State Ownership has affected level playing field and competitive ability Less flexibility in dealing with strategic HR & operational issues Imbalance in distribution/ deployment of staff Inadequate skills for modern banking Changing environment, adoption of technological advancement, marketing of products requires change in the mind-set of employees Low per employee productivity

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Opportunities
Rural India is the next growth horizon with an opportunity 3 times the size of Urban India Financial Inclusion is a clear-cut opportunity with overall exposure to formal services of finance being about 20% Great opportunity for expanding business with over 60% population outside the banking service net IT Initiative creating a back bone for increasing reach. It provides an opportunity to go beyond the Brick & Mortar Bank has a visionary leadership which can transform the bank Large workforce of 55398 numbers of employees. Each and every employee has to believe we can do it, usher in change in our attitudes/conventional wisdom, be a learner willing to adapt to the changing banking environment

Threats
Aggressive marketing by competitor banks Expansion of peer Banks/Private Sector Banks in Indo-Gangetic belt eroding our dominance Loss of savings business to Mutual Fund/ Insurance Products which are aggressively marketed as being more remunerative Technological parity of competitor banks

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Aggressive strategy and innovative products, larger risk appetite of other banks

Various product of Punjab National Bank DEPOSITS

Money placed into a banking institution for safekeeping. Bank deposits are made right to deposit accounts at a banking institution, such as to withdraw any deposited funds, as set forth savings in the accounts, terms and checking accounts and money market accounts. The account holder has the conditions of the account. The "deposit" itself is a liability owed by the bank to the depositor (the person or entity refers to this liability rather than to the actual that made the deposit), and funds that are deposited.

There are four types of deposits Schemes in Punjab National Bank 1. Saving fund deposits 2. Current deposits 3. Fixed deposits 4. Recurring deposits

PNB SAVING DEPOSIT SCHEMES

ELIGIBILITY: -

All individuals are eligible singly or jointly minor above the age of 10 years under natural/legal guardianship. HUF & Societies registered under society act 1960.

1. Saving fund account

Deposit: Rs.500/- (QAB Rs.500/- for Rural & Rs.1000/- for semi urban/urban/metro city) Loan facility: Not applicable. Other features: 40 free cheque leaves free in a year
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Free internet banking services Prudent sweep scheme on request. Demat account facility available. Nomination facility.

2 .PNB prudent sweep Eligibility: All individuals are eligible. Amount of deposit: Initial deposit Rs.500/-(Min. QAB: 5000/-For Rural and Semi urban & Rs.10000/- for Urban/Metro) Period: 7 TO 179 Days (FD Period) There is no loan facility Other features: Free Retail internet banking services. Free 100 cheque leaves in a financial year. 50% concessions on annual maintenance charges for Demat services for the first year only.

3 .PNB

Vidyarthi Saving Funds Scheme

Eligibility:-Accounts can be opened in the name of students Studying at various recognized educational institutions. Deposit:-this a/c can be opened with zero Balance Other features: Free 20 cheques per half year. Free DD for fees. Free internet services.
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4. PNB Mitra:

Free ATM/Debit cards. Free intersol transactions No incidental charges Free issuance of draft for all type of fees/examination fess.

Eligibility: Only individuals are eligible, minor of age 10 year & above under natural/legal guardianship. Initial deposit: It can be opened with zero balance. Other feature: There are limited KYC norms. No cheque book is to be issued under the Scheme. Debit card/ATM card/ internet banking facilities allowed Area of operation would be confined in radius of 20 km of branch where the account is opened. 5. PNB Total Freedom salary account Purpose: To offer an attractive Saving Fund Account to Corporate Employees for enabling them to have their Salary Credited as well as availing overdraft facility up to Rs. 30,000/- or the last salary credited in the account whichever is lower, at our interest rates applicable to Personal Loans to employees, it would be adjustable in bullet repayment at the time of next salary credit Initial Deposit and Minimum Balance Requirements: Zero Facilities offered: The following facilities are also be provided under the scheme:

Free Cheque: 20 cheques leaves free per annum. Free Statement of Accounts;

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Free issuance of all types of certificates including interest certificate and balance certificate, etc; Free of Cost issuance of PNB Debit/ATM Card; however, annual charges shall be recoverable. RTGS/NEFT Transaction: Free upto Rs 50,000/- thereafter, normal charges.

50% discount in one locker at the branch convenient to customer for 1st year only

5. PNB Rakshak scheme

Eligibility: All Defense Personnel are eligible to open account under the scheme Initial Deposit: initial deposit required for opening of account is Zero and minimum quarterly balance is Nil. Feature: Sweep in and out shall take place in saving account after the cut off level of Rs15000 Free Debit/ATM card and no annual maintenance charge Any number of transaction with a maximum cash withdrawal limit of Rs50000 per day Free RTGS/NEFT Concession in locker charges for small locker only of 25% Free cheque book for routine requirement Interest concession on car loan Demat account facilities

6. PNB shikshak Sweep scheme Purpose: This scheme helps in bringing in substantial number of teacher account into our fold. Eligibility: All Permanents teacher of recognized school/college/educational institutes
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Initial deposit: zero Features:

Free Debit/ATM card(No annual maintenance charge) Any number of transactions with a maximum cash withdrawal limit of Rs40000 per day. Free internet banking facility, Free cheque book Demat account maintenance charges waived for 1st year

PNB CURRENT DEPOSITS

PNB SMART ROAMER CURRENT ACCOUNT SCHEME The product is aimed at offering Current Account Customers convenient opportunity to earn extra-returns on surplus funds lying in the accounts which may not normally be utilized in the near future or are likely to remain un-utilized. The automated nature of the facility for 'Sweep In or Sweep Out' of more than a lac of rupees, and creating fixed deposits for desired period, would save lot of operational hassles and create Customer Value. Roaming Features: The Customers would be able to operate their 'Current Comfort' at all other CBS branches of our Bank. It will facilitate transfer of funds as well as much faster cheque collection services for the customers; simultaneously customers will be able to withdraw cash from our CBS branches. Initial deposit: Rs5000/ Minimum QAB: 2lac Sweep in and out: The Customer shall be able to profitably deploy his funds which were earlier not attracting any interest. Funds (above Rs. One Lac) lying in Current Accounts and their

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ready availability when required for payment /clearance of cheque. The bank would provide the facility of automatic transfer of balance from Current Accounts having a balance of over Rs.1, 00,000/- (Rupees one lac only) in multiples of Rs. 25,000/- (Rupees Twenty Five Thousand Only) to Fixed Deposit Accounts. Sweep In Funds would be accepted for a minimum maturity period of 7 days and Maximum maturity period of 45 days. The customer would get the interest on such deposit at the TERM DEPOSIT CARD RATE (for below Rs15lacs amount of single Term Deposit) applicable for the period indicated by him/her, provided it remains under FD portion for a minimum period of 7 days. Feature: Free ATM Card; Free e-mails for statement of account on monthly basis 25% concession on Annual Custody Charges for Demat Services 25% concession in cash receipt at other CBS branches. Free Retail Internet Banking Services

PNB Gaurav- Current Account

Initial deposit: Rs5000/Quarterly Average balance: Rs1, 00,000/Non maintenace charge: Rs1200/-Qty Other feature : Free intersol transfer charge Free account statement 25% rebate on the locker 20% concession on RTGS service Free internet banking service

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Free debit/ATM card. DEMAT Account charge for first year is free Cash withdrawal of Rs1 lac per day from local non-base branches and 25%
discount on the normal charges

PNB FIXED DEPOSIT SCHEMES

Fixed deposit means money may be placed with a bank for a fixed period of time at a fixed rate of interest which remains unchanged during the period of deposit. Depositors may have to accept an interest penalty if they break the deposit PNB SPECTRUM DEPOSIT SCHEME This scheme is a integration of following fixed deposit schemes of our bank. Ordinary FD scheme. Multi benefit FD scheme. Revised Anupam Deposit scheme. Special Fixed deposit scheme. Varshik Aay Yojna Fixed Deposit Scheme.

This scheme can be availed by Individuals (singly or jointly) with others, illiterate and blind are eligible without OD facility. Minors below 10 years are eligible under guardianship. Initial deposit: Min.100/- and thereafter in multiples of Re.1/-. However, to avail overdraft facility, the minimum deposit amount should continue to be 10,000 /Period of deposit: 7 days to 120 months.

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Recurring deposits
PNB offered two type of the recurring deposit scheme:

Simple Recurring scheme Swechha Jama Yojna/ Flexi RD scheme

Simple Recurring scheme Account can be opened with a minimum monthly deposit of Rs.100/- or its multiples for a period of 6 months to 120 months in multiples of 3 months Interest at term deposit rates is computable on quarterly compounded basis The small monthly savings in the Recurring Deposit scheme enable you to accumulate a handsome amount on maturity

Swechha Jama Yojna / Flexi RD Scheme Individuals can open account, singly or jointly, by a minor of the age of 10 years and above in his name or through his guardian A depositor can choose a monthly installment with a minimum of Rs.100 or above in its multiples. However, the subsequent monthly installment will not exceed ten times of such core amount without any ceiling on maximum amount. No matter, even if the monthly installment is skipped. Deposit accepted for any period from 6 months to 120 months and interest is paid at term deposit rates on half yearly basis.

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THIRD PARTY PRODUCT PNB-ORIENTAL ROYAL MEDICLAIM POLICY

Health Insurance is more of a necessity in terms of security as any hospitalization due to a major illness or an accident can expose any person to loose his hard earned savings. With the objective of protecting customers interest and to achieve our vision of providing entire range of financial products and services to our customers under one roof, the Bank has launched a Customized Group Health Product PNB-ORIENTAL ROYAL MEDICLAIM POLICY under our Referral Arrangement Banc assurance Tie-up with Oriental Insurance Co. Ltd.(OICL). The Product has been got designed exclusively for PNB Customers and only the A/c Holders of PNB will be eligible to take cover under the Scheme. The product will be available in all PNB Branches across the country. The Salient Features of the Product are as under: All customers (depositors as well as borrowers) of the Bank shall be eligible to take cover under the Scheme. It is a family floater Scheme, which covers the Entire Family i.e. Propose, Spouse & 2 dependent children (Female dependent child until she is married & Male dependent child upto the age of 26 years, provided he is bonafide regular student). Floater Sum Insured shall mean a single sum insured, under the policy for all the family members named therein. It is the maximum sum payable under the policy for any hospitalization claim covered in respect of any one insured person or all the insured persons in the family jointly.

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Age Group covered: 3 months to 80 years. No Medical Examination is required for entry at any stage. Cashless facility is available at a large Net Work of Hospitals. The policy will be serviced by TPAs (Third Party Administrators). The Premium is much lower and quite comparable with all available health insurance products in the market. Uniform Premium for persons of all age-groups upto 80 years age. The validity of the cover will be for one year and renewable as per Terms & Conditions given in the Prospectus. The Scheme is effective w.e.f. 23-04-2010. Cover available for Minimum Sum Insured of Rs.1 Lac, upto Rs. 5 Lac, in multiple of Rs.1.00 Lac. The Premium Structure (Inclusive of Service Tax) is as under

Sum-Insured 1 Lac 2 Lac 3 Lac 4 Lac 5 Lac

Premium 1717 3259 4536 5674 6705

IT EXEMPTION: The premium paid under the policy through Cheuqe is eligible for Income Tax exemption under Section 80-D of the Income Tax Act.

Other benefits such as Ambulance Charges, Cost of Health Check-up, Hospital Cash etc. also available under the Scheme

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No Service charges are being recovered by the Bank, from customers, for providing above intermediary services. However, a nominal amount in the shape of Referral Fee is being received by the Bank from the concerned Insurance Cos. as per guidelines issued by the Insurance Regulatory & Development Authority (IRDA)

LIFE INSURANCE CORPORTATION OF INDIA

For Life-Insurance solutions of banks customers, the Bank has made Bancassurance Tieup with leading Public Sector Undertaking Life Insurance Corporation of India, which has varieties of products suitable for people of all income groups and segments of society. LIC of India has endeavour to ensure & enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive return. To achieve its mission and goals, it has launched varieties of products. Bouquet of Popular products of LIC of India includes: Investment Plans Bima Bachat Endowment plus Pension Plus Jeevan Akshay VI Jeevan Tarang Komal Jeevan Child Fortune Plus Jeevan Anand Jeevan Saral Jeevan Bharati

Pension Plans

Children Plans

Insurance cum Investment Plans

Exclusive products for Females

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MUTUAL FUNDS
In an endeavor to enlarge the range of services available to our customers, PNB has been distributing the products of Principal PNB Asset Management Company Pvt. Ltd. from its designated branches, since July, 2004. To provide variety of Mutual Fund Products to its customers, Now the Bank has also started the Distribution & Marketing of UTI Mutual Fund Products. In recent times Mutual funds have gained rapid popularity as a good investment vehicle and public at large is attracted towards MF investment, which has variety of schemes and income options offered by Mutual Funds which can suit the financial preferences of all classes of investors, be it Retail, Corporate or Institutional. The following benefits, intrinsic to investments in Mutual Funds have inspired greater confidence amongst the investors :Transparency Efficient Performance Liquidity Convenience Tax benefits

Range of Scheme:

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Mutual Funds offer schemes keeping in view the risk profile and risk-return preferences of investors. For an aggressive investor with appetite for risk, Equity oriented schemes are available which have a higher potential for capital appreciation. For a conservative investor with expectations of stable returns and low risk, Income Schemes are available. To suit various type of requirements of the investors, some of the schemes of Principal PNB AMC & UTI AMC are as under: Principal PNB AMC: Principal Growth Scheme: Open-ended equity fund with an investment portfolio of stocks diversified across different sectors of the economy. Principal balanced Fund: Open ended fund with an equity (diversified) component of 51% to 70% and Debt component (including Money Market) 30% to 49%. Principal Income Fund: Open-ended fund with up to 100% investment in Debt instruments (including Money Market instruments and securitized debt) Principal Income Fund Short Term Plan: The scheme is meant for investors seeking stable returns over shorter-term investment horizons compared to the Principal Income Fund. Principal Cash management Fund: An Open-ended fund that invests 100% of its corpus in Money Market instruments and seeks to provide an excellent avenue to park very short term cash surpluses and earn returns linked to the call money market rates. Principal Index Fund: An Open-ended fund that tracks S&P CNX Nifty (NSE) closely. The aim of the fund is to
35

provide its investors returns commensurate with the Nifty.

Principal Large Cap Fund: An open-ended scheme to invest in the stocks of the companies having a large market capitalization. The fund is suitable for investors interested in long term capital appreciation. Principal Child Benefit Fund The scheme is suitable for an investor seeking long-term growth and accumulation of capital for the beneficiary. The objective of the scheme is to generate regular returns and/or capital appreciation / accretion with the aim of giving lump sum capital growth at the end of the chosen target period or otherwise to the Beneficiary. Principal Tax Savings Fund: An open-ended Equity linked savings scheme suitable for investors seeking income tax deductions under section 80C(2) of Income Tax Act along with long-term equity-market returns from investment in equities. Principal Personal Tax Saver Fund: The scheme is suitable for investors seeking income tax deductions under section 80C(2) of ITA along with long term equity-market returns from investment in equities. Principal Monthly Income Plan: An open-ended income scheme having periodical distribution with no assured monthly returns. MIP attempts to provide income on a monthly basis and is, therefore, particularly suited for investors seeking regular source of income. Principal Infrastructure & Service Sector Fund: An open-ended Equity Scheme with an objective to provide capital appreciation and income distribution by investing predominantly in Equity/Equity related instruments of Infrastructure & Service Sector companies.
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UTI Mutual Funds

UTI Infrastructure Fund: An open ended equity fund with the objective to provide Capital appreciation through investing in the stocks of the companies engaged in the sectors like Metals, Building Materials, Oil & Gas, Power, Chemicals, Engg. Etc. UTI Mid Cap Fund: An open ended equity fund with the objective to provide Capital appreciation by investing primarily in Mid Cap stocks. UTI Large Cap Fund: An open ended equity Fund with the objective to provide capital appreciation through investment in top 50 companies in terms of market capitalization. UTI Services Sector Fund: An open-ended fund which invests in the equities of the Services Sector companies of the country. One of the growth sector funds aiming to provide growth of capital over a period of time as well as to make income distribution by investing the funds in stocks of companies engaged in service sector such as banking, finance, insurance, education, training, telecom, travel, entertainment, hotels, etc. UTI Leadership Equity Fund: The scheme seeks to generate capital appreciation and / or income distribution by investing the funds in stocks that are Leader in their respective industries /sectors / subsector. UTI Dividend Yield Fund: An open-ended equity scheme. It aims to provide medium to long term capital gains
37

and/or dividend distribution by investing predominantly in equity and equity related instruments which offer high dividend yield.

UTI Index Select Fund: An open-ended equity fund with the objective to invest in select stocks of the BSE Sensex and the S&P CNX Nifty. The fund does not replicate any of the indices but aims to attain performance better than the performance of the indices. UTI Equity Fund: UTI Equity Fund is open-ended equity scheme with an objective of investing at least 80% of its funds in equity and equity related instrument with medium to high risk profile and upto 20% in debt and money market instruments with low to medium risk profile. UTI Childrens Career Plan (Balanced):

An open-ended debt oriented fund with investment in Debt/G-sec of minimum 60% and a maximum of 40% in Equity. Investment can be made in the name of the children upto the age of 15 years so as to provide them, after they attain the age of 18 years, a means to receive scholarship to meet the cost of higher education and/or to help them in setting up a profession, practice or business or enabling them to set up home or finance the cost of other social obligation.

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SYSTEMATIC INVESTMENT PLAN

The UTI systematic investment plan enables us to have a disciple approach to our investment by helping us invest little by little in monthly installments to accumulate a small amount of wealth on the side to plan for any underlining needs. The rupee averaging cost rule helps UTI to average out your cost of acquisition of units. If you notice your wealth giving you good returns you can even extend your investment with the UTI SIP plan over the coming few years. You need to choose the scheme of your choice under the UTI SIP plan banner and decide as to how much you can invest. Benefit of SIP SIP offers you tax benefits which could come in handy if have to pay income tax. Regular Investment makes you disciplined in your savings and also leads to wealth accumulation. SIP comes with a locking period, so even if you wish to spend you cannot as the funds are locked and cannot be taken out. In SIP, invest as low as 500 or 1000 rupees. There is no need to worry if you do not earn a lot of money as you can still be a market investor with as low as 500 a month and even that would come up to be quite a good sum after a few years. In SIP, you invest in mutual funds where your investments are managed by market experts and professionals who have good knowledge in this field, so you have a chance to do much better than that of investing yourself alone.

In SIP, you will be purchasing units at all phases of the market, high or low, depending on that you get the units share and so you dont need to worry about market going up or down. But just have to wait for the right time to take out your money after the scheme is over and no more deposits are being done. Thus your investments get averages out at the end and the loss is very limited which isnt the case when you invest all at once.

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GOLD COINS: Bank started gold coin business on 16.10.2006 with objective to enhance our product portfolio, meet the requirements of the customers & to increase our revenue by cross selling to our asset and liability customers At present gold coins are supplied by M/s MKS Finance S.A.Zurich which owns worlds largest independent & prestigious gold refinery PAMP USPs of PNB GOLD COINS

24 carat, 999.9 fineness Available in 2 gm, 5 gm, 8 gm, 10 gm & 20 gm with PNB Logo. Supplied by PAMP, Switzerland worlds largest gold refinery. Assay certified number on each gold coins signifying highest level of purity as per international standards. Tamper proof certicards packing Competitively priced

DISCOUNT TO RETAIL CUSTOMER 2 % discount is allowed on the basic price of gold is allowed for : Existing Customer, Staff member, Bulk buyer of 10 coins and above at one time. DISCOUNT TO BULK BUYER Weight of coin irrespective of denomination 0.5Kg-1 Kg 1 Kg-5 Kg 5 Kg- 10 kg > 10 Kg Discount 4.50% 5.00% 5.50% 6.00%

Credit Card:
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Bank has launched its credit card on 5th February 2009. Our credit card is fully loaded credit card having all the advanced features which any peer bank is providing as on date like: SMS alerts on every transaction e-statement Interface with PNB internet banking for viewing latest/ previous statements as well as transactions. interactive interface through our credit card website Online payment options through PNB internet banking besides auto debit and ECS facility Competitive finance charges

Types of Credit Card: PNB Global Gold Credit Card PNB Global Classic Credit Card For classic card Rs1,00,000/Rs1,00,000/For Gold Card Rs2,50,000/Rs2,00,000/-

Eligibility: Minimum Annual Income should be: Profession Salaried applicant Self employed/Business

Payment option: Cash/Transfer-cheque/voucher

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VISA money transfer EMI scheme

Know your Credit Card: No Annual Fee No Renewal Fee No Joining Fee No Fuel Surcharge Low Finance Charges Low Cash Advance Charges Low Balance Transfer Charges Low EMI Charges SMS Alerts VISA Utility Bill Pay Facility Free Credit Period upto 50 days Global Validity 24 hour call centre

PNB DEBIT CARDS

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Debit cards are also magnetic strip based cards and in addition to performing the function of withdrawing cash from the ATMs, these can also be used to make purchases at Point of Sale i.e. at merchant establishment. These can also be known as buy now pay now cards. Types of Debit cards: - The debit cards in general have a validity of 7 years and are broadly classified under 2 categories: 1. Non personalized cards (Cards without name and / or photo) 2. Personalized cards (Cards with name and / or photo Under both the above broad categories we can have following two sub categories:

PIN Based Cards: In order to make transactions at POS using these cards the cardholder has to punch PIN. Signature Based Cards: In these cards the POS transactions can be done by signing the charge slips and punching of PIN is not required.

However, in order to withdraw from ATMs the functionality is same for both types of cards. Another difference between PIN and signature based cards is that the latter can be used for making E-banking transactions over Internet whereas the former cannot be used for the same. There are2types of signature based cards: 1. General/ Normal Signature Based Debit Cards 2. Platinum Debit Cards

Eligibility for issuance of Debit card:(1)Classic Debit Cards: All the Customers, who maintain Current / Saving Fund / Overdraft account with our Bank. The designated account can be in joint names with 'either or Survivor, Former or Survivor' mandate and to all the account holders in such accounts having operation mandate as 'Any one'. In case of 'Former or Survivor' account card can be issued to Former only.

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Only overdraft accounts against security of Banks Deposits and Govt. liquid securities are covered under the scheme. The card will not be issued to firms, HUFs and Corporate bodies.

(2)Platinum Debit Cards: Customers who maintain minimum average quarterly balance during last quarter of1.00 lac in case of a Current Account (sole proprietorship) and 50,000/- in case of a Saving Fund Account are eligible for issuance. In case of Current (Overdraft), the customers who are enjoying limit of 1.00 lac and above are eligible for Platinum card. Only overdraft accounts against security of Banks Deposits and Govt. liquid securities are covered under the scheme. All the staff members (including retired employees) of our Bank.

Cash withdrawal: Type of card Classic card Platinum card Cash withdrawal Rs25,000/-per day Rs40,000/-per day POS (Point of sales) Rs25,000/-per day Rs60,000/-per day

Feature of PNB Debit cards: Issue charges nil Annual fees- Rs100/Duplicate card-Rs100/Free debit card for the staff member

MERCHANT ACQUIRING BUSINESS:

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 Launched Merchant Acquiring Business on 11thFebruary 2010.

Merchant Acquiring refers to the activity of enabling merchants to accept payment through card products such as Debit Card, Credit Card, Prepaid Cards, etc. through the use of: a) EDC/POS Electronic Data Capture/Point of Sale Terminals b) Internet Payment Gateway (IPG). Cost of Machine- Rs. 8000/- to 10,000/-

Mobile Banking:

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Bank has started SMS Alerts facility in 2009, now the Bank has launched PNB Mobile Banking Services, on 11th February 2010. Which was in the first phase available to Retail customers and now the services have been extended to corporate customers. Manual SMS Banking View account balance Account Statement Request Online Mini Statement(Quick View of last 10 transactions) Transfer of funds to own accounts Online Stop payment of cheque Request for Cheque Book issuance Cheque Status inquiry Message to Relationship Manager Changing SMS Password Presently the transaction limits are Rs. 50,000/- per day per customer for both funds transfer and transactions involving purchase of goods / services.

PNB world Travel Card:

PNB World Travel Card is a prepaid travel card just like our Debit card denominated either in USD/EURO/GBP for visitors going Aboard. It will be on Master card platform. The card holder will be given the facility of withdrawal through POS/ATM displaying Master card logo across the globe Eligibility: all Indian national who intended to go aboard for any purpose including student going aboard for studies. It can be issued to non customer also. Foreign nationals while on visit to India against forex brought in.

Car loan:
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Purpose: Purchase of New Car/ Van/Jeep Purchase of old Car/ Van/Jeep which is not older than 3 year.

Eligibility: Individual/ business concerns Amount of Loan For Individuals / Proprietorship Concerns: 25 times of the monthly net salary OR Rs.25 lacs (for one or more vehicles), whichever is lower. Income of parent(s) / spouse can be taken into account for determining loan amount. For Business Concerns (Corporate or non-corporate): No ceiling on loan amount (for one or more vehicles) depending upon the earning/repaying capacity of the concern. Rate of interest: Tenor Repayment less than 3yr More than 3 year Guarantee: Third party Guarantee/collateral security is waived in cases where the person is Permanent employee of central /state GOVT/PSU Minimum net monthly salary/ pension/ income criteria Rs20,000/ROI 12.00% 12.50% EMI per Lac 36 months 60months 3289 3311 2227

84months 1774

Housing loan scheme:

Purpose:

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To meet the financial needs of individual to construct/ purchase new house or to purchase the old house/flat/plot To carry out repairs/ renovation/addition/furnishing

Eligibility: Individual between age group of 18-65 years having regular source of income(Joint owner are also eligible) Amount of loan: Need based, depending upon repaying capacity for purchase/ construction. Maximum Rs20.00lacs for Repair/Renovation/ Addition/Alteration Maximum Rs50.00lacs for purchasing of Plot/land Maximum Rs2.00lacs for furnishing.

Rate of interest: Period Base Rate System floating Rate Upto Rs 30 lac Above Rs30<75 Above 75 lacs 10.50 10.75 10.75 11.00 11.00 lacs 11.25 11.50 11.50 11.75 11.75 11.50 11.75 11.75 12.00 12.00

Upto 5year Above5 to10 year Above10 to15 year Above15 to20 year Above20 to25 year

Repayment : Repayment up to the age of 65 year.

Educational loan-vidyalakshyapurti
The Scheme aims at providing financial assistance to deserving / meritorious students pursuing higher education in India or abroad. viz., Graduation courses B.A., B.Com., B.Sc., etc., Post-Graduation courses, Masters & Ph.D; Professional courses, Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc., Computer
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Certificate courses of reputed Institutes accredited to Department of Electronics or institutes affiliated to University; Courses like ICWA, C.A., CFA, etc., courses conducted by IIM, IIT, IISc, XLRI, NIFT, etc., Regular Diploma/Degree courses conducted by Colleges/Universities approved by UGC/Govt./AICTE/AIBMS/ICMR, Regular Degree / Diploma courses like Aeronautical, Pilot training, Shipping etc. approved by DGCA/ etc., Courses offered by National Institutes and other reputed Private Institutes. Eligibility:

Should be an Indian National. Secured admission to Professional / Technical courses in India or abroad through Entrance Test / Merit based Selection process.

Expense considered for the loan: Fee payable to College / School / Hostel Examination / Library / Laboratory fee. Caution Deposit / Building Fund / Refundable Deposit supported by Institution Bills / Receipts, subject to the condition that the amount does not exceed 10% of the total tuition fee for entire course.. Purchase of computers - essential for completion of the Course. Travel Expenses / Passage money for studies abroad Boarding and lodging expenses in recognized Boarding Houses / private accommodations Amount of loan: Need based finance subject to repaying capacity of the parents, student with margin and the following ceilings: Studies in India- Maximum of Rs10.00lacs

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Studies in Abroad- Maximum of Rs 20.00lacs Margin

Upto Rs 4.00lacs- nil

Above Rs4.00 lacs: Studies in India- 5% Studies in Abroad- 15%

Rate of interest: Upto to Rs4.00lacs: 10.50%

Over Rs4.00lacs to Rs15.00 lacs: 11.25%

Repayment: 5-7 year commencing after one year of completion of studies of six month after getting job which ever is earlier 1% Interest concession may be provided by incumbents to loaness if the interest is serviced by them during the study period or repayment holiday.

PROJECT TOPIC-CUSTOMER SATISFACTION

Customer satisfaction refers to the extent to which customers are happy with the products and services provided by a business. Customer satisfaction levels can be measured using survey techniques and questionnaires
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DEFINITIONS: Definition 1: Customer satisfaction is equivalent to making sure that product and service performance meets customer expectations. Definition 2: Customer satisfaction is the perception of the customer that the outcome of a business transaction is equal to or greater than his/her expectation. Definition 3: Customer satisfaction occurs when acquisition of products and/or services provides a minimum negative departure from expectations when compared with other acquisitions. Gaining high levels of customer satisfaction is very important to a business because satisfaction customers are most likely to be loyal and to make repeat orders and to use a wide range of services offered by a business There are many factors which lead in high levels of customer satisfaction including. Products and services which are customer focused and hence provide high levels of value for money. What is clear about customer satisfaction is that customers are most likely to appreciate the goods and services that they buy if they are made to feel special. This occurs when they feel that the products and services that they buy have been specially produced for them or for people like them.

BENEFITS OF CUSTOMER SATISFACTION

The importance of customer satisfaction and support is increasingly becoming a vital business issue as organization realize the benefits of Customer Relationship Management (CRM) for providing effective customer service. Professionals working within customer-

51

focused business or those running call centers or help desks, need to keep informed about the latest customer satisfaction techniques for running a valuable customer service function. From small customer service departments to large call centers, the importance of developing a valued relationship with customers using CRM is essential to support customer and long-term business growth.

What Do Customers Want?

Before we begin to create tools to measure the level of satisfaction, it is important to develop a clear understanding of what exactly the customer wants. We need to know what our customers expect from the products and services we provide. Customer expectations have two types

Expressed Expectation Implied Expectation

Expressed Customer Expectations are those requirements that are written down in contract and agreed upon by both parties for example, product specifications and delivery requirements. Suppliers performance against these requirements is most of the items directly measurable. Implied Customer Expectations are not written or spoken but are the ones the customer would expect the supplier to meet nevertheless. For example, a customer would expect the service representative who calls on him to be knowledgeable and competent to solve a problem on the spot. There are many reasons why customer expectations are likely to change overtime. Process improvements, advent of new technology, changes in customers priorities, improved quality of service provided by competitors are just a few examples.

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The customer is always right. Suppliers job is to provide the customer what he/she wants, when he/she wants it. Customer satisfaction is customers perception that a supplier has met or exceeded their expectations.

CONSTITUTES OF SATISFACTION
We cannot create customer satisfaction just by meeting customers requirements fully because these have to be met in any case. However failing short is certain to create dissatisfaction Major Attributes of customer satisfaction in banking industry can be summarized as:

Product quality Premium Outflow Return on Investment Services Responsiveness and ability to resolve complaints and reject reports. Overall communication, accessibility and attitude.

WHAT ARE THE TOOLS? Customer expectations can be identified using various methods such as:

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Periodic contract reviews Market research Telephonic interviews Personal visits Warranty records Informal discussions Satisfaction surveys

Depending upon the customer base and available resources, we can choose a method that is most effective in measuring the customers perceptions. The purpose of the exercise is to identify priorities for improvements. We must develop a method or combination of methods that helps to continually improve service.

CUSTOMER SATISFACTION SURVEYS

Formal survey has emerged as by far the best method of periodically the customer satisfaction. The survey are not marketing tools but an informationgaining tool. Enough homework needs to be before embarking on the actual survey. This includes: Defining Objectives of the Survey Design Survey approach Develop questionnaires and forms Administer Survey (Email, Telephone or Post) Method of compiling data and analyzing the findings Format of the report to present the findings

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There is no point in asking irrelevant questions on a customer satisfaction questionnaire. The basic purpose is to find out what we are doing right or wrong. Where is the scope for improvement, where do we stand vis--vis other suppliers. How we can serve the customer better?

A customer satisfaction measurement survey should at least identify the following objectives:
Importance to customers (Customers priorities) Customers perception of suppliers performance Your performance relative to customers priorities. Priorities for improvement

Survey forms should be easy to fill out with minimum amount of time and efforts on customers part. They should be designed to actively encourage the customer to complete the questions. Yet they must provide accurate data should also be sufficiently reliable for management decision making. This can be achieved by incorporating objective type questions where customer has to rate on scale of say 1 to 10. For repeated surveys, you could provide the rating that was previously accorded by the customer. This works like a reference point for the customer. Space should always be provided for the customers own opinions this enables them to state any additional requirements or report any shortcomings that are not covered by the objective questions. Normally, we deal various personnel at various levels in the customers organization the buyer, user, receiving inspector, finance and purchase person etc. surveying a number of respondents for each customer gives a complete perspective of customer satisfaction. It may be necessary to device a different questionnaire for each of them.

LITERATURE REVIEW
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CUSTOMER SATISFACTION PROCESS The paramount goal of marketing is to understand the customer and to influence buying behavior. The process can be depicted as follows: Need recognition- realization of the difference between the desired and the current situation that serves as a trigger for entire process. Search for information. Pre purchase alternative evaluation. Consumption(utilization of the procured option) Post purchase alternative re-evaluation. Divestment(disposal of the unconsumed product and its remnants)

WAYS FOR MAINTAINING RELATIONS WITH THE CUTOMERS ADOPTED BY PNB

The ability of the banking industry to achieve the socio-economic objectives and in the process bringing more and more customers into its fold will ultimately depend on the satisfaction of the customers. We have a strong belief that a satisfied customer is the foremost factor in developing our business. A need was felt by us at Punjab National Bank that in order to become more customers friendly the Bank should come out with Charter of its services for the customers. Citizens' Charter concept was considered as a base instrument to fill this need and accordingly this document was prepared. This document was made in consultation with

56

the users and highlights our Bank's commitments towards the customer satisfaction, thus ensuring accountability and responsibility amongst its officials and staff. This Code for customers not only explains our commitment and responsibilities along with the redressed methods but also specifies the obligation on the part of customers for healthy practices in Customer-Banker relationships. This is not a legal document creating rights and obligations. The Code has been prepared to promote fair banking practices and to give information in respect of various activities relating to customer service. We wish to acknowledge the initiative taken by the Ministry of Finance, Government of India and Ministry of Administrative Reforms and Public Grievances for encouraging us to bring out this Code. We maintain constant consultations with our clientele through various Seminars, Customer Meets, etc. to evaluate improve and widen the range of service to customer. However, all our customers are requested to keep us informed of their experiences about the various services rendered by the Bank and feel free to comment on this Code. We intend to bring it out in many Regional Languages in subsequent years. COMMON PRACTICES FOLLOWED BY PNB BRANCHES

Display business hours. Render courteous services. Attend to all customers present in the banking hall at the close of business hours. Provide separate 'Enquiry' or 'May I help you' counter at large branches. Offer nomination facility to all deposit accounts (i.e. account opened in individual capacity) and all safe deposit locker hirers (i.e. individual hirers).

Display interest rates for various deposit schemes from time to time. Notify change in interest rates on advances.
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Provide details of various deposit schemes/services of the Bank. Issue Demand Drafts, Pay Orders, etc. Display Time-Norms for various banking transactions. Pay interest for delayed credit of outstation cheques, as advised by Reserve Bank of India (RBI) from time to time.

Accord immediate credit in respect of outstation and local cheques upto a specified limit subject to certain conditions, as advised by RBI from time to time.

Provide complaint/suggestion box in the branch premises. Display address of Regional/Zonal and Central Offices as well as Nodal Officer dealing with customer grievances/complaints.

REASEARCH DESIGN STATEMENT OF THE PROBLEM

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This Study will help us to understand the consumers satisfaction about banking services and products offer by PNB. This study will help banks to understand, how a consumer selects, organizes and interprets the Quality of service and product offered by bank. The market is more aware and realistic about investment and returns from financial products. In this background this study tries to analyze the customer satisfaction towards banking services in general and PNB in particular.

NEED FOR THE STUDY

The deeper the company understands of consumers needs and satisfaction, the earlier the product or service is introduced ahead of competition, the greater the expected contribution margin. Hence the study is very important. This study will help companies to customize the service and product, according to the consumers need.

This study will also help the companies to understand the experience and expectations of the existing customers.

SCOPE OF THE STUDY

This study is limited to the consumers with in Chandigarh and Ambala city. The study will be able to reveal the preferences, needs, satisfaction of the customers regarding the banking services, It also help banks to know whether the existing products or services are offering are really satisfying the customers needs.

OBJECTIVE OF THE STUDY

To have an insight into the attitudes and behaviors of customers.

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To find out the differences among perceived service and expected service. To produce an executive service report to upgrade service characteristics. To understand consumers preferences. To access the degree of satisfaction of the consumers

REASERCH METHODOLOGY
A descriptive study tries to discover answers to the questions who, what, when, where, and, sometimes, how. The researcher attempts to describe or define a subject, often by creating a profile of a group of problems, people, or events. Such studies may involve the collection of data and the creation of a distribution of the number of times the researcher observes a single event or characteristic (the research variable), or they may involve relating the interaction of two or more variables. Organizations that maintain databases of their employees, customers, and suppliers already have significant data to conduct descriptive studies using internal information. Yet many firms that have such data files do not mine them regularly for the decisionmaking insight they might provide. This descriptive study is popular in business research because of its versatility across disciplines. In for-profit, not-for-profit and government organizations, descriptive investigations have a broad appeal to the administrator and policy analyst for planning, monitoring, and evaluating. In this context, how questions address issues such as quantity, cost, efficiency, effectiveness, and adequacy. Descriptive studies may or may not have the potential for drawing powerful inferences. A descriptive study, however, does not explain why an event has occurred or why the variables interact the way they do.

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SAMPLE METHOD
Convenience sampling method is used for the survey of this project. It is a nonprobability sample. This is the least reliable design but normally the cheapest and easiest to conduct .In this method Researcher have the freedom to choose whomever they find, thus the name convenience. Example includes informal pools of friends and neighbors or people responding to a newspapers invitation for readers to state their position on some public issue.

SAMPLE SIZE
Sample size denotes the number of elements selected for the study. For the present study, 100 respondents were selected at random. All the 100 respondents were the customers of different branches of PNB.

SAMPLING METHOD
A sample is a representative part of the population. In sampling technique, information is collected only from a representative part of the universe and the conclusions are drawn on that basis for the entire universe. A convenience sampling technique was used to collect data from the respondents.

METHOD OF DATA COLLECTION

To know the response, the researcher used questionnaire method. It has been designed as a primary research instrument. Questionnaires were distributed to respondents and they were asked to answer the questions given in the questionnaire. The questionnaires were used as an instrumentation technique, because it is an important method of data collection. The success of the questionnaire method in collecting the information depends largely on proper drafting. So in the present study questions were arranged and interconnected logically. The structured questionnaire will reduce both interviewers and interpreters bias.

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Further, coding and analysis was done for each questions response to reach into findings, suggestions and finally to the conclusion about the topic.

TYPES OF DATA
Every decision poses unique needs for information, and relevant strategies can be developed based on the information gathered through research. Research is the systematic objective and exhaustive search for and study of facts relevant to the problem. Research design means the framework of study that leads to the collection and analysis of data. It is a conceptual structure with in which research is conducted. It facilitates smooth sailing of various research operations to make the research as effective as possible.

ANALYSIS AND INTERPERATION

Occupation

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Table shown the occupation of the respondent

SL.NO 1 2 3 Total Occupation Service Business Student NO Of Respondent 45 40 15 100

o ccu tio p n
5 0 4 5 4 0 3 5 3 0 2 5 2 0 1 5 1 0 5 0 S rv s e ice B ssin ss u e stu e t dn no of respondent

Analysis: These charts show that the 45 respondent are in the service while rest of 55 respondents is the businessmen and student. Interpretation: This graph depicts the categorization of the sample into different occupation i.e. Service, Business and Student.

INCOME STATUS Table shown the income of respondent

Income Below Rs. 5 lakhs Rs. 5-8 lakhs
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No of respondents 40 20

Rs. 8-12 lakhs Above Rs. 12 lakhs Total

20 20 100

no of respondent

Income Status
50 40 30 20 10 0 Below Rs. 5 lakhs Rs. 5-8 lakhs Rs. 8-12 lakhs Above Rs. 12 lakhs

Majority of respondent have the income below 5 lacs and rest of the income of the respondent are shown in the table.

SHARE OF DIFFERENT TYPES OF ACCOUNTS

SL. No. NATURE OF ACCOUNTS NUMBER OF RESPONDENTS PERCENTAGE OF RESPONDENTS

1.

Saving A/Cs

78

78%

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2. 3. 4. 5. Total

Current A/Cs Fixed Deposits Loans Others

9 4 3 6 100

9% 4% 3% 6% 100%

Graph Classification based on nature of A/Cs

Saving A/Cs

Current A/Cs

Fixed Deposits

Loans

Others

Analysis: Above table shows that 78% respondents have Saving A/Cs, and 9% have Current A/Cs and rest of the respondents have 13% share of other A/Cs in total (which includes fixed deposits, loans, and other products) Interpretation: This means most of the respondents are having Saving A/Cs which means the bank deposits are enriching as Saving A/Cs share is most.

SATISFACTION OF RESPONDENTS WITH SERVICES OFFERED BY PNB BRANCH

SL. No.

RESPONSE

NUMBER OF RESPONDENTS 89 11

PERCENTAGE OF RESPONDENTS 89% 11%

1. 2.

Satisfied Not satisfied

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TOTAL

100

100 %

classification on the basisof respondents

100 90 80 70 60 50 40 30 20 10 0 satisifed Not satisfied

Analysis: From the above table it could be inferred that 89% of the consumers are satisfied with the service and quality of products of their bank. Only 11% of consumers are not satisfied. Interpretation: Most of the respondents are satisfied with the service offered by PNB. Presently the bank offers varieties of services and the customers are getting a good rate of return from their deposits. Customers are getting good service from the bank

RATINGS OF THE SERVICES OFFERED BY PNB

SL. No. 1. 2. 3. 4. 5. RATINGS EXCELLENT VERY GOOD GOOD AVERAGE POOR NUMBER OF RESPONDENTS 05 09 76 06 04 PERCENTAGE OF RESPONDENTS 5% 9% 76% 6% 4%

No. of respondent

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TOTAL

100

100 %

Classification based on Rating of the service offered by PNB branches

645 9

76 EXCELLENT VERY GOOD GOOD AVERAGE POOR

Analysis: From this table it could be inferred that 76% of the consumers have rated service offered as good, 9% of them have rated them as very good, and 05% of them have rated as excellent and average while only 4% have rated as poor Interpretation: Service offered by the bank is improving day by day. Returns consumers are getting are also attractive. Majority of the customers rates good, very good and excellent because of the customer service offered by the bank. Banks are providing a good service to the customers due to increased competition in the market. This may be the reason for more satisfaction

MOTIVE BEHIND THE SELECTING PNB

SL.NO 1. 2. 3. 4. ATTRIBUTE Brand name Customer service Interest Others SCORE 56 30 12 2 RANK 1 2 3 4

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Motive behind the Selecting of PNB 60 50 40 No. of 30 respondents 20 10 0 Motives Brand name Customer service Interest Others

56 30 12 2

Analysis: This table show the strengths and weaknesses of the brand, and what are the important criteria or factors on which decision-making is done. From this table we can infer that consumers give more importance for Brand name, secondly they prefer satisfaction, and then returns on investment. Interpretation: This purely shows that people are now looking forward for better customer service in addition to the brand name in which they are investing and the returns they are getting.

CONSUMERS WILLINGNESS TO RECOMMEND PNB BANK SERVICE TO THE OTHER

SL. No. RESPONSES NUMBER OF RESPONDENTS 92 08 100 PERCENTAGE OF RESPONDENTS 92% 8% 100 %

1. 2. TOTAL

Recommended Not recommended

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Classification based on the willingness to recommend PNB Bank services to other banks

recommended

Not recommended

Analysis: From this table it can be noted that the majority of consumers (92%) would like to recommend their bank services to others and only 8% of consumers would not like to recommend it to others. Interpretation: Since the competition has increased in the field of benefits and service of banking. So customers are getting good service, so that they are willing to recommend their bank services to others.

CONSUMERS WILLINGNESS TO SHIFT THEIR A/Cs TO OTHER BANKS

SL. No. RESPONSES NUMBER OF RESPONDENTS 8 92 100 PERCENTAGE OF RESPONDENTS 8% 92% 100 %

1. 2. TOTAL

Shift Doesnt shift

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Classification based on the willingness of respondents to shift their A/Cs to other banks

Shift

Doesn't shift

Analysis: From this table it can be noted that the majority of consumers (92%) doesnt like to shift their A/Cs to other banks. Interpretation: The reason can be increasing customer satisfaction and quality services offered by the bank.

SUGGESTIONS & RECOMMENDATIONS With regard to banking products and services, consumers respond at different rates, depending on the consumers characteristics. Hence I PNB should try to bring their new product and services to the attention of potential early adopters. Due to the intense competition in the financial market, PNB should adopt better strategies to attract more customers. Return on investment company reputation and premium outflow are most preferred attributes that are expected by the respondents. Hence greater focus should be given to these attributes.

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PNB should adopt effective promotional strategies to increase the awareness level among the consumers.

PNB should ask for their consumer feedback to know whether the consumers are really satisfied or dissatisfied with the service and product of the bank. If they are dissatisfied, then the reasons for dissatisfaction should be found out and should be corrected in future.

The PNB brand name has earned a lot of goodwill and enjoys high brand equity. As there is intense competition, PNB should work hard to maintain its position and offer better service and products to consumers.

The bank should try to increase the Brand image through performance and service then, only the customers will be satisfied.

Majority of the people find banking important in their life, so PNB should employ the strategies to convert the want in to need which will enrich their business

CONCLUSION:

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The project entitled A STUDY TO UNDERSTAND THE CUSTOMER SATISFACTION AT PNB has helped me in studying satisfaction about services and products offered to consumers. Since the opening up of the banking sector, private banks are in the fray each one trying to cover more market share than the other.

Yet, PNB is far behind SBI. PNB must also be alert what with Private Banks (ICICI, HDFC) breathing down its neck. I am sure the bank will find my findings relevant and I sincerely hope it uses my suggestions enlisted, which I hope will take them miles ahead of competition. In short, I would like to say that the very act of the concerned management at PNB in giving me the job of critically examining consumer satisfaction towards financial products and services of the company is a step in their continual mission of making all round improvements as a means of progress. I am sure the bank has a very bright future to look forward to and will be a trailblazer in its own right.

LIMITATIONS OF THE STUDY

Although the study was carried out with extreme enthusiasm and careful planning there are several limitations, which handicapped the research viz, 1. Time Constraints:

The time stipulated for the project to be completed is less and thus there are chances that some information might have been left out, however due care is taken to include all the relevant information needed.

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2.

Sample size:

Due to time constraints the sample size was relatively small and would definitely have been more representative if I had collected information from more respondents. 3. Accuracy:

It is difficult to know if all the respondents gave accurate information; some respondents tend to give misleading information.

4. It was difficult to find respondents as they were busy in their schedule, and collection of data was very difficult. Therefore, the study had to be carried out based on the availability of respondents.

Bibliography

https://www.pnbindia.in/En/ui/Home.aspx http://en.wikipedia.org/wiki/Punjab_National_Bank https://www.pnbindia.in/En/ui/Mutual-Fund.aspx

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http://www.principalindia.com http://www.utimf.com

Name of the customer: Sex. Male/ Female Address............ Phone number:

Occupation a) Businessman
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b)Government Service

c) Student

Annual income of the customer a) b) Below Rs. 5 lakhs Rs. 8-12 lakhs c) Rs. 5-8 lakhs d) Above Rs. 12 lakhs

Which of the following services you are availing from PNB? Saving account Current account Fixed deposit Loans Other . . .. .....

Are you satisfied with the services of PNB ? Satisfied . Not Satisfied .

Give Rating to the services provided by PNB? Excellent . Very good.

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Good.. Poor .

Average..

What is your motive behind to selecting the PNB? Brand Name Interest .. customer service .. Other .

Whether you recommended the PNB service to other person? Recommended.. Not Recommended .

You want to shift your account to other bank? Shift Dont shift .

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