PROJECT REPORT

ON

PUNJAB & SIND BANK

Submitted to PROTON business school

In Partial fulfillment of the requirements for
the award of degree of

MASTER OF BUSINESS ADMINISTRATION (M.B.A.)

(2009-2011)

SUBMITTED BY

RINKU KUMARI
ROLL NO- 09PR00102AA028

M.B.A. 2nd YEAR

 PREFACE

India is a developing country and we all know that banking

sector plays a very important role. In development with the
increasing use of banking and finance in every field, new
trends in their technology and modern use are being evolved
day to day to meet the requirements. Infact “BANKING” has
become the need of today.
The purpose of PROJECT REPORT is to expose the students in
the market and in the field of banking, finance and investments
and to develop the ability in the students to deal with all types
of customers.

Preparing project report in the summer vacations and under

going the summer training is the indispensable part of the
college period. It provides the opportunity to review what we
have gained in the training period and also provides the way to
convey the knowledge and ideas to others.

The present project provides the information on the “PUNJAB &

SIND BANK”.

Learning is not possible in solitude and has to have the support

and able guidance of some people around us in various roles
and capacities. The satisfaction and euphoria that accompanies
the successful completion of any task would be incomplete
without the mention of the people who made it possible
because success is the epitome of hard work, undeterred
missionary zeal, fast determination, and consideration.

Therefore, we consider it a pleasant duty to express our

heartiest appreciation, gratitude, and indebtedness to our
project guide Mr. Nitish Dipankar for his keen interest, sincere
extortion, invaluable and pain taking excellent guidance,
continuous calm endurance, inspiration and encouragement
during each phase of the present project.
INDEX
• ACKNOWLEDGEMENT
• UNDERTAKING
• PREFACE
• INTRODUCTION
• CHANGES IN BANKING SECTOR
• CHALLENGES AHEAD
• TECHNOLOGY IN BANKING SECTOR
• COMPANY PROFILE
• ACHIVEMENTS AND ACTIVITIES
• NATIONALISATION
• MISSION AND VISION
• BUSINESS FOCUS
• CAPITAL STRUCTURE
• DISTRIBUTION NETWORK
• MANAGEMENT
• CORPORATE GOVERENCE
• WORK PROCESS IN PUNJAB & SIND
BANK
• BUSINESS CYCLE

• FINANCE DEPARTMENT
• INTRODUCTION
• HIERARCHY OF THE FINANCE
DEPARTMENT
• ACCOUNT SECTION
• COST SECTION
• FINANCE MANAGEMENT PREPARATION

• HIGHLIGHTS OF FINANCIALPERFORMANCE OF PUNJAB

AND SIND BANK
• ANALYSIS OF WORKING CAPITAL
• INTRODUCTION
• CONCEPT OF WORKING CAPITAL
• COMPONENTS OF WORKING CAPITAL
• TYPES OF WORKING CAPITAL
• SIGNIFICANCE OF WORKING CAPITAL
• IMPORTANCE OF WC RATIOS

• STATEMENT SHOWING
• CASH AND BALANCE ANALYSIS
• LOANS AND ADVANCES ANALYSIS
• CURRENT LIABILITIES ANALYSIS
• RATIO ANALYSIS
• FUND FLOW ANALYSIS
• CASH FLOW STATTEMENT OF THE
YEAR
• ASSET QUALITY
• INVESTMENTS

• OBJECTIVES & SCOPE OF STUDY

• RESERCH METHODOLOGY
• RESULT, ANALYSIS & DISCUSSION
• LIMITATIONS
• OBSERVATIONS RECOMMENDATION
• APPENDIX QUESTIONNAIRE
• BIBLIOGRAPHY
ACKNOWLEDGEMENT
To acknowledge all the persons who had helped for the

fulfillment of the project is not possible for any researcher but

in spite of all that it becomes the foremost responsibility of the

researcher and also the part of research ethics to acknowledge

those who had played a great role for the completion of the

project.

So in the same sequence at very first, I would like to

acknowledge my parents because of whom I got the existence

in the world for the inception and the conception of this

project. Later on I would like to confer the flower of

acknowledgement to Mr. Vinay Goel and other faculty members

who taught me that how to do project through appropriate

tools and techniques.

Rest all those people who helped me are not only matter of

acknowledgment but also authorized for sharing my success.

 RINKU KUMARI

UNDERTAKING

I Rinku Kumari do here by declare that the project report on study

conducted on “Financial Institutions ” in PUNJAB & SIND BANK,
submitted by me in the partial fulfillment of M.B.A. (Master of Business
Administration), PROTON business school ,Indore(M.P)

What ever Data has been disclosed in the report are authentic to the
best of my knowledge. I have not submitted this training report to any
other university ever before.

RINKU KUMARI
M.B.A. FINANCE
PREFACE

As a matter of Knowing how things look like in practical sense every

M.B.A. student has to undergo training in an approved business
organization for the tenure of not less than six weeks. I got a chance to
seek more and more knowledge under the guidance of professional
managers.
On the completion of M.B.A. Degree students have hand on experience
that will help for facing challenging jobs under such competitive
environment.
I have completed my project successfully in “The study of working
capital analysis” under the guidance of S. Tarlok Singh (Asst. Manager
Finance).
During the above course tenure Mr. Amarjeet Singh (Cash Manager)

helped me for getting knowledge concerning with taxation and specially

I would like to thank Mr. R.k. Sharma for allowing me to work in Bank.
INTRODUCTION
The main idea of the project is to carry out a research for the working captal

management of Punjab & Sind Bank . The bank attained market leadership

in Premium salary accounts and second largest seller of regular salary

account in a record time.The situation is similar now. Will the company be

able to repeat the same performance for all the category of this product?

It has developed its products with better service, new and best management

information system. The project aims to find out the response of the

corporate through a research process.

The project was done in various phases:

• The first phase comprises gathering information related to the

product and population,

• In the second phase a survey is to be conducted on corporate

customers of Gurdaspur region through direct questionnaire.

• The findings and representation of the research is done in the third

phase
 • And in the last phase all the findings and analysis along with

conclusions and recommendation has been submitted in report format

for further use.

It was also necessary to do a competitor analysis as well to know the

strength and weakness of the various competitors as the segment has a lot of

players and more global players will join the competition soon. Various

marketing tools have been used to analyze the current situation of Punjab&

Sind Bank’s salary account segment and find out its position among the

competitors in order to form a strategy for the Punjab & Sind Bank in salary

account segment.
 Changes in Banking Sector
The face of banking is changing rapidly. Competition is going to be tough
and with financial liberalisation under the WTO, banks in India will have to
benchmark themselves against the best in the world. For a strong and
resilient banking and financial system, therefore, banks need to go beyond
peripheral issues and tackle significant issues like improvements in
profitability, efficiency and technology, while achieving economies of scale
through consolidation and exploring available cost-effective solutions. These
are some of the issues that need to be addressed if banks are to succeed, not
just survive, in the changing milieu.

Challenges Ahead

(i) Improving profitability: The most direct result of the above

changes is increasing competition and narrowing of spreads and its impact
on the profitability of banks. The challenge for banks is how to manage with
thinning margins while at the same time working to improve productivity
which remains low in relation to global standards. This is particularly
important because with dilution in banks’ equity, analysts and shareholders
now closely track their performance. This will require tremendous efforts in
the area of technology and for banks to build capabilities to handle much
bigger volumes.

(ii) Reinforcing technology: Technology has thus become a

strategic and integral part of banking, driving banks to acquire and
implement world class systems that enable them to provide products and
services in large volumes at a competitive cost with better risk management
practices.
The pressure to undertake extensive computerizations is very real as banks
that adopt the latest in technology have an edge over others. Customers have
become very demanding and banks have to deliver customized products
through multiple channels, allowing customers access to the bank
round the clock.

(iii) Risk management: The deregulated environment brings in its

wake risks along with profitable opportunities, and technology plays a
crucial role in managing these risks. In addition to being exposed to credit
risk, market risk and operational risk, the business of banks would be
susceptible to country risk, which will be heightened as controls on the
movement of capital is eased. In this context, banks are upgrading their
credit assessment and risk management skills and retraining staff,
developing a cadre of specialists and introducing technology driven
management information systems.

(iv) Sharpening skills: The far-reaching changes in the banking

and financial sector entail a fundamental shift in the set of skills required in
banking. To meet increased competition and manage risks, the demand for
specialized banking functions, using IT as a competitive tool is set to go up.
Special skills in retail banking, treasury, risk management, foreign exchange,
development banking, etc., will need to be carefully nurtured and built.
Thus, the twin pillars of the banking sector i.e. human resources and IT will
have to be strengthened.
(v) Greater customer orientation: In today’s competitive
environment, banks will have to strive to attract and retain customers by
introducing innovative products, enhancing the quality of customer service
and marketing a variety of products through diverse channels targeted at
specific customer groups.

(vi) Corporate governance: Besides using their strengths and

strategic initiatives for creating shareholder value, banks have to be
conscious of their responsibilities towards corporate governance. Following
financial liberalisation, as the ownership of banks gets broadbased, the
importance of institutional and individual shareholders will increase. In such
a scenario, banks will need to put in place a code for corporate governance
for benefiting all stakeholders of a corporate entity.

(vii) International standards: Introducing internationally

followed best practices and observing universally acceptable standards and
codes is necessary for strengthening the domestic financial architecture. This
includes best practices in the area of corporate governance along with full
transparency in disclosures. In today’s globalised world,focusing on the
observance of standards will help smooth integration with world financial
markets.

Technology in Banking Sector

Technology is having a major impact on the banking industry. For example,
many routine bank services that once required a teller, such as making a
withdrawal or deposit, are now available through ATMs that allow people to
access their accounts 24 hours a day. Also, direct deposit allows companies
and governments to electronically transfer payments into various accounts.
Further, debit cards, which may also used as ATM cards, instantaneously
deduct money from an account when the card is swiped across a machine at
a store’s cash register. Electronic banking by phone or Computer allows
customers to pay bills and transfer money from one account to another.
Through these channels, bank customers can also access information such as
account balances and statement history. Some banks have begun offering
online account aggregation, which makes available in one place detailed and
up-to date information on a customer’s accounts held at various institutions.
Advancements in technology have also led to improvements in the ways in
which banks process information. Use of check imaging, which allows
banks to store photographed checks on the computer , is one such example
that has been implemented by some banks. Other types of technology have
greatly impacted the lending side of banking. For example, the availability
and growing use of credit scoring software allows loans to be approved in
minutes, rather than days, making lending departments more efficient.
Other fundamental changes are occurring in the industry as banks diversify
their services to become more competitive. Many banks now offer their
customers financial planning and asset management services, as well as
brokerage and insurance services, often through a subsidiary or third party.
Others are beginning to provide investment banking services that help
companies and governments raise money through the issuance of stocks and
bonds, also usually through a subsidiary. As banks respond to deregulation
and as competition in this sector grows, the nature of the banking industry
will continue to undergo significant change.

COMPANY PROFILE

Profile:-
The Bank was founded in 1908 at Amritsar by eminent persons like Bhai
Saheb Veer Singh, Sunder Singh Majithia and S.Tarlochan Singh.At the
time of partition, all excepts Ludhiana and Amritsar branches were in
Pakistan.
2000 - The Bank has launched its bullion trading scheme on persistent
demand from North Indian traders, especailly in view of the Diwali festival
season.
- The Bank has been appointed as arranger and collecting banker for State
Bank of India's India Millennium Deposit scheme slated to open on October
21
2001 - NS Gujaral has been appointed as the chairman and managing
director of the Delhi-based Punjab & Sind Bank.
2003
-The bank has launched a special festival loan scheme for meeting the
expenditure for items such as purchase of consumer goods or furnishing of
house or shops
2004
-Mr. V K Chopra, CMD, Small Industries Development Bank of India,
appointed as CMD of Punjab & Sind Bank
-P&SB appoints new chairman R S Gujral
-Punjab and Sind Bank (PSB) and ICICI Bank on July 02 announced the
launch of co-branded credit card that will be available in three variants -
Gold, Silver and Blue credit card
-Punjab and Sind Bank ties up with Aviva Life

Punjab & Sind Bank, established in 1908, is headquartered at New Delhi.

Having more than 800 branches across the country, the bank has around
10,000 employees dedicated to the banking services and customer care. The
bank offers usual banking services along with innovative banking methods
including Internet and phone banking, international banking, merchant
banking, hire, purchase, leasing and credit cards.

Objective

The bank was founded by luminaries like Bhai Vir Singh, Sir Sunder Singh
Majitha and Sardar Tarlochan Singh in the holy city of Amritsar on the
principle of social commitment to help the weaker section of the society in
their economic endeavours to raise their standard of life.

Achievements and Activities

Punjab & Sind Bank is the first bank in Northern India to obtain ISO 9002
certification for its selected branches. Its Housing Finance Branch caters to
the credit need of the house aspirants. The bank has entered into agreements
for Non Life insurance business with M/s Bajaj Allianz General Insurance
Company and Life Insurance business arrangements with M/s Aviva Life
Insurance Company India Pvt. Ltd. Its customers can now avail insurance
related services under one roof.

Nationalisation
Punjab & Sind Bank was nationalized in 1980 along with six other banks by
the Government of India.

Products & Services

Deposits Savings Account

Recurring Deposit
Fixed Deposits
Current Accounts
Loans Priority Sector Loans
Housing Loan
Home Enhancement Loans
Personal Loan
Education Loan
Car Loans
Business Loans
Other Services NRI Services
Punjab & Sind Bank-ICICI Bank Credit Card
Gold Card Schemes
RBI Citizens' Charter including cash and deposits
Locker Facilities
RTGS
NEFT
PSB e-funds Transfer
Tax Payment
E-bill Payments
PSB- Aviva Allianz Insurance
MISSION
To put in place the effective Risk Management and Internal Control
Systems.
To adopt and operationalise high-level technology standards.
To strive to achieve excellence in Customer Service.
To achieve the highest standards of transparency and accountability in the
conduct of banking business.
To adopt professional approach in effectively managing financial as well as
non-financial risks.
To maximize profitability and profits of the Bank with due compliance of
prudential guidelines.
To maximize competitive risk adjusted return on capital, through planned
reduction in the average cost of funds, increased yield on advances and
investments besides reduction in cost of operations.

The bank has collaborated with the leading credit card player in the
country to offer the privileges of state of art technology to its cardholders
with all the features to compete well in the card industry.
Our Bank has been making efforts to provide value added products &
Services to our esteemed clients. It is our quest to provide the very best to
our esteemed Customers. The launch of new Co-branded Credit card with
ICICI Bank is a step towards this mission.
Vision
We envision to emerge as a strong vibrant Bank through synchronization of
the human, financial and technological resources.

The bank also offers a wide range of general banking services to its
customers including debit cards, cash management, remittance services
and collection services. Investment Rationale
• PSB to establish its pan India presence by opening new branches
throughout the country to increase its customer base and business.
Expanding of branch network is expected to help the bank to improve
CASA ratio going forward.
• PSB plans to open specialised industrial finance branches and
aims at expanding its credit portfolio, by growing its corporate
& retail loan segment.
• PSB has been able to reduce its net NPA ratio significantly from
8.11% (which was highest amongst the public sector banks) in FY05 to
0.36% in FY10. Going ahead bank is likely to maintain
NPA ratios around this level.
• PSB will continue developing its technological capabilities to
enhance its value offering to customers while optimizing its costs.
From a total of 17 branches on the CBS platform, PSB seeks to
bring around 500 branches on the CBS platform by Nov 2012
enabling it to have incremental CASA growth and profitability
in future.
• PSB has maintained capital adequacy ratio (CAR) at 13.04% with
the tier-I capital at 7.9% and the tier-II capital at 5.1% as on
September 2010. The bank plans to meet its future capital
adequacy requirement through this issue
.
Concern
• A major part of their branch network is concentrated in North
India and thereby exposing them to regional risks.
• PSB’s exposure to the real estate segment has witnessed substantial
increase in the last 3 fiscal years. Any significant downturn in
the real estate sector may lead to an increase in nonperforming
loans.

Valuation
In terms of valuation, the stock is offered at 0.9x and 0.8x book value
(post issue) at upper and lower band, respectively. Its peer group
valuation is in the range of 0.8-1-4x. The bank’s growth plans to
expand its business, products & services to benefit bank in long term.
Also, the strong Indian economic growth is likely to benefit the
overall banking industry which would inturn benefit the Punjab &
Sind bank.

MANAGEMENT
SHRI A. BHATTACHARYA DIRECTOR (Ministry of Finance, Deptt. of Financial Services,
New Delhi)
SHRI B. P. KANUNGO (RBI Nominee Director)
NON- OFFICIAL DIRECTORS

SHRI MATTA VENKATA SIVA PRASAD

SHRI KRISHAN MURARI GANGAWAT
SHRI HARI CHAND BAHADUR SINGH
SHRI A.K. SURANA (C.A. Category)
SHRI KARANPAL SINGH SEKHON

Punjab & Sind Bank IPO

he initial public offering (IPO) of State-owned Punjab & Sind Bank will be opening for subscription
from December 13, reports CNBC-TV18. The bank will offer 4 crore equity shares through IPO.
The issue comprises a net issue to the public of 3.8 crore equity shares and a reservation of 20
lakh equity shares for subscription by eligible employees. The issue shall constitute 17.93% of the
post-issue share capital of the bank.

Its subscription will close on December 15 for qualified institutional investors (QIB) and on
December 16 for other investors.
The objective of the issue is to augment capital base to meet the future capital requirements
arising out of the growth in assets due to the growth of the Indian economy.
President of India, acting through the Ministry of Finance, Government of India, holds 100% stake
in the bank, which will be reduced to 82.07% post issue.
SBI Capital Markets Limited, Enam Securities Pvt Ltd and ICICI Securities Limited are the book
running lead managers to the issue

GOLD CARD SCHEME FOR EXPORTERS

Exports play a crucial role in a developing economy like India which
attaches considerable importance to export promotion. With a view to
further simplify access of Bank credit to exporters especially small and
medium exporters and make it borrower friendly in terms of procedure and
credit terms, the Minister of Commerce and Industry had proposed issuance
of a Gold Card to Credit Worthy Exporters with good track record for easy
availability of export credit on best terms. Accordingly, a Gold Card Scheme
has been worked out by RBI in consultation with select banks and exporters.
The scheme envisages certain additional benefits based on the record of
performance of exporters. The Gold Card holders would enjoy simpler and
more efficient credit delivery mechanism in recognition of his good track
record. The Gold Card Scheme has been introduced in our Bank, the details
of which are as under:

1. The card offered by the bank will be known as "PSB EXPO GOLD
CARD SCHEME

Fixation of Credit Limits :

1. Application for credit will be processed faster than other exporters. The
time frame fixed for disposal of applications received for sanction of credit
under the scheme is as follows:-

For disposal of fresh applications 25 days

Renewal of limits 15 days
Sanction of adhoc limits 07 days

2. Bank is already following a liberal approach in respect of export finance.

Bank will allow 'In-principle' sanction of limits for three years with a
provision for automatic renewal subject to fulfillment of terms and
conditions of sanction. Sanctioning Authority will also introduce a clause in
the terms & conditions of sanction that party will be submitting all the
financial papers and other information required by the bank for the renewal
and reviewal of account periodically.

3. PCFC requirements of the PSB Expo Gold Card holders will be met by
giving them priority. Their FCDL requirements will also be given priority
over non-export borrowers subject to availability of funds.
4. Export credit in foreign currency will be provided on priority basis at
LIBOR + 0.75% p.a. subject to availability of funds. In case sufficient
dollars are not available with the bank to lend to the exporter at a particular
time, service charges at flat rate of 0.1% will be charged by the bank on the
inter-bank foreign currency borrowings for the purpose, subject to
availability of funds.

5. Bank will consider granting Term Loan in Foreign Currency in deserving

cases out of their FCNR(B), RFC, etc. funds subject to availability of funds.

6. Sufficient powers have already been vested with the field functionaries for
sanction of adhoc limits to meet urgent credit requirements of exporters.
Urgent credit requirements of PSB Expo Gold Card holders will be met on
priority basis. In the case of exporters of seasonal commodities, the peak and
off-peak levels will be appropriately specified.

7. With a view to capture only those particulars which are relevant for
sanctioning export credit, the Loan Application Form for export credit for
Gold Card Holder devised by Indian Banks Association has been adopted.

8. In case of unanticipated export orders, norms for inventory may be

relaxed, taking into account the size and nature of export order.

9. Since the bonafides of the Gold Card holder is already established based
on credit worthiness and track record, the same will be given due
consideration by the sanctioning authority in respect of security and
collaterals while granting export credit under the PSB Expo Gold Card
scheme.

Rate of Interest :
1. Rate of interest charged on Rupee Export Credit to the Gold Card Holders
will be lower than the normal rate of interest charged by the bank as under:-

lower by 0.5% than the normal

For exporters having credit rating 1 & 2
rate of interest charged by the bank
lower by 0.25% than the normal
For exporters having credit rating 3 & 4
rate of interest charged by the bank

2. In respect of PSB Expo Gold Card holders, the concessive rate of interest
on post-shipment rupee export credit applicable upto 90 days will be
extended for a maximum period of 365 days.

Service Charges :

1. All PSB Expo Gold Card holders will be offered discount of 15% in
service charges and fee structure for various services/ transactions subject to
compliance of FEDAI guidelines.

2. PSB Expo Gold Card holders, in view of their credit worthiness will be
considered for exemption from ECGC policy at the discretion of the bank.

Tenure :

1. The Gold Card will be issued for a period of 3 years and will be
automatically renewed for a further period of 3 years, unless there are
adverse features/irregularities in the account. In case of any misuse of the
card or observance of any violation of the terms & conditions, the bank will
have the right to recall the card any time.

2. The exporter's record of performance will be reviewed periodically with a

view to pass on the benefit of better terms and conditions including rate of
interest for better performance.

The following additional facilities/benefits will be allowed to the holders

of PSB Expo Gold Card :-
i. Waiving of Annual Fee for the first year on the Credit Card and 50%
discount for second year onwards subject to satisfactory utilisation of Credit
Card.

ii. Better exchange rates & exchange rates on daily basis will be provided by
the branches through E-Mail wherever feasible.

iii.Customer Education Programme will be conducted by the bank for them

in which International developments and latest RBI guidelines will be
discussed.

iv. Problems of the Gold Card Holders will be discussed and immediate
remedial measures will be taken."

Till the Gold Card is finalised, Zonal Managers may issue letters to the
exporters considered eligible by them under 'PSB Expo Gold Card' Scheme.
They may submit their requirement of 'PSB Expo Gold Card' and Loan
Application Form for 'PSB Expo Gold Card' holders to H.O. Stationery
Deptt. and obtain the same from them.

Zonal Managers are advised to take keen interest in the scheme in order to
popularise the same and implement in true spirit. Banners be also displayed
at the concerned Branches.

One of the criteria of Eligibility for PSB Expo Gold Card was that exporters
enjoying export credit limits (excluding FOBLC) of Rs.1 crores & above
and annual export sales routed through our bank not less than Rs.5 crores
during the preceding one calendar
year/financial year will be eligible for PSB Expo Gold Card.

With a view to extend the scheme to all credit worthy exporters including
those in Small and Medium Enterprises segment and to simplify credit
access, it has been decided to waive the condition of export credit limits and
turnover stipulated earlier.
About the Card:
The "PUNJAB & SIND BANK-ICICI BANK Credit Card" comes in three
variants : Blue, Silver and Gold card. The eligibility criteria in terms of
Annual Income of the applicant is as follows:
Eligibility Blue Card Silver Card Gold Card
Salaried Rs.60000/-p.a Rs.60000/- Rs.120000/-p.a
p.a
Self Employed Rs.50000/-p.a Rs.50000/- Rs.100000/-p.a
p.a

Business Focus
Punjab & Sind Bank's mission is to be a World-Class Indian Bank. The
objective is to build sound customer franchises across distinct businesses so
as to be the preferred provider of banking services for target retail and
wholesale customer segments, and to achieve healthy growth in profitability,
consistent with the bank's risk appetite. The bank is committed to maintain
the highest level of ethical standards, professional integrity, corporate
governance and regulatory compliance. P & S Bank's business philosophy is
based on four core values - Operational Excellence, Customer Focus,
Product Leadership and People.
 CAPITAL STRUCTURE:-
 The authorized capital of Punjab & Sind Bank is Rs.1.83 Billion.
 The paid-up capital is Rs.1.6 billion.

 The HDFC Group holds 14.00% of the bank's equity and about

13.50% of the equity is held by the ADS .

 Net profit Rs. 437.18 Cr (Up by 14.34%).

 Operating Profit Rs. 727.71 Cr. (up by 34.10%)

 The shares are listed on the The Stock Exchange, Mumbai and the
National Stock Exchange.
 Business per employee Rs. 6.56 Cr
 Return on Assets 1.26 %
 Capital Adequacy Ratio 11.88 %
 Gross NPAs 161.04 Cr

Distribution Network:-

Punjab & Sind Bank is headquartered in New delhi. The Bank at present has
an enviable network of over 813 branches and 76 extension counters spread
over India and 400 in Punjab. All branches are linked on an online real-time
basis. Customers in over 120 locations are also serviced through Telephone
Banking. The Bank's expansion plans take into account the need to have a
presence in all major industrial and commercial centres where its corporate
customers are located as well as the need to build a strong retail customer
base for both deposits and loan products. Being a clearing/settlement bank to
various leading stock exchanges, the Bank has branches in the centres where
the NSE/BSE have a strong and active member base. As a part of
International banking it offers NRI services, swift branches, IBDs and gold
card scheme. The bank has launched the facility of online request for
education loan to make it easier for the customers. It has tied up with ICICI
bank for a co-branded credit card. It also has tie-up with Aviva Life
Insurance Company and Bajaj Allianz General Insurance Company. It has
attained ISO 9002 certification for its selected branches.
Management:-

Mr. V K Chopra took over as the bank's Chairman. Prior to this, Mr. Kapoor
was a Deputy Governor of the Reserve Bank of India.The Managing
Director, Mr V K Chopra has been a professional banker for over 25 years
and before joining Punjab & Sind Bank in 1994 was heading Citibank's
operations in Malaysia. The Bank's Board of Directors is composed of
eminent individuals with a wealth of experience in public policy,
administration, industry and commercial banking. Senior banking
professionals with substantial experience in India and abroad head various
businesses and functions and report to the Managing Director. Given the
professional expertise of the management team and the overall focus on
recruiting and retaining the best talent in the industry, the bank believes that
its people are a significant competitive strength.
Corporate Governance Rating :-
The bank was one of the first four companies, which subjected itself to a
Corporate Governance and Value Creation (GVC) rating by the rating
agency, The Credit Rating Information Services of India Limited (CRISIL).
The rating provides an independent assessment of an entity's current
performance and an expectation on its "balanced value creation and
corporate governance practices" in future. The bank has been assigned a
'CRISIL GVC Level 1' rating which indicates that the bank's capability with
respect to wealth creation for all its stakeholders while adopting sound
corporate governance practices is the highest.

Investment Rationale

Wide Distribution Network and diversification of products & services

PSB has a pan India presence through 926 branches and 63 ATMs as on
October 31, 2010. It has a large presence in northern India with 623
branches, which is believed to be rich in resources and offer great
opportunity for resource mobilization. Out of these 920 branches it has 49
specialised branches including specialised agriculture branches, personal
banking branches and MSME branches. PSB plans to expand its branch
network which would result in increasing the customer base, CASA ratio
and business. It intends to focus on the technology including the rollout of
the core banking system and the launch of customer-centric and multi-
channel solutions like internet banking, telephone banking and mobile
banking, to support its network of branches. Thus, PSB within the periphery
of banking business is venturing and offering newer products and services
which would augment growth and aid in client acquisition.

• Strong asset quality & financial growth PSB has been able to increase its
business operations significantly, while improving its asset quality. In fiscal
2005, PSB had net NPA ratio of 8.11% (highest amongst the public sector
banks) has been reduced to 0.36% in FY10 (group average of the public
sector banks at 0.91%). Also the bank is likely to maintain NPA ratios
around this level. The bank has registered a CAGR of 21.1% in net total
income, 35.6% in operating income and 15.1% in net profit over the period
2006-2010. During the last five fiscals, it has been able to achieve a CAGR
of 36.24% in its net advances in spite of a reduction in net NPA ratio. Also,
it has registered strong RoA for fiscal 2010 at 1.06% and NIMs for fiscal
2010 was at 2.67%.

• Comfortable capital adequacy ratio , The bank’s capital adequacy ratio

(CAR) as on September 2010 stood at 13.04% with the tierI capital at 7.98%
and the tier-II capital at 5.06%. The bank plans to meet its future capital
adequacy requirement through this issue. During FY08 the equity capital of
the bank was restructured by converting an amount of INR 1.6 Bn into
‘Innovative Perpetual Debt Instrument (IPDI), INR 2 Bn into Perpetual
Non-cumulative Preference Shares (PNCPS) and INR 2 Bn into Perpetual
Cumulative Preference Shares (PCPS), while retaining INR 1.83 Bn as the
equity capital. The primary purpose of capital restructuring was to enable
the bank to raise fresh equity capital from the market.

• Accelerate growth in loans and advances to the retail and corporate

sectors Advances growth has been robust over the years & in FY10 PSB
recorded 32.6% to INR 326.39 Bn growth YoY. PSB proposes to strengthen
its relationship with large corporate and public sector organizations by
increasing funding to infrastructure sector. In order to expand corporate
banking services, it has recently forayed into syndication of loans. PSB
aims at expanding its credit portfolio by growing its corporate & retail loan
segment. PSB also plans to open specialised industrial finance branches to
focus on project appraisal, to maintain and enhance its franchise in the
MSME.Continue to develop our technological capabilities PSB will
continue developing its technological capabilities to enhance its value
offering to customers while optimizing its costs. From a total of 17 branches
on the CBS platform, PSB seeks to bring around 500 branches on the CBS
platform by Nov 2012. This would enable PSB to have incremental CASA
growth in future. The key objectives behind it is to build a cost-efficient
distribution network to accelerate the development of its retail and rural
franchise, enhancing cross selling & client segmenting capability by using
analytical tools & efficient data storage & retrieval systems, improving
credit risk and market risk Management.
Profit & Loss Statement INR mn

Y/E March FY09 FY10 H1FY11

Interest Income 32472 39342 23066

Interest Expenses 22353 27502 15260
Net Interest Income 10119 11839 7806
Other Income 3835 3921 2163
Operating Income 13954 15761 9969
Operating Expenses 6673 7081 4844
Operating Profit 7281 8680 5126
Provisions and
Contingencies 829 2118 1129
Profit Before Tax 6452 6562 3997
Provision for Tax 2108 1565 1233
Profit After Tax 4344 5011 276
Balance Sheet INR mn

Y/E March FY09 FY10 H1FY11

Sources of Funds

Equity Capital 3831 3831 3831

Reserves & Surplus 12341 17235 19990
Net Worth 16172 21066 23821
Deposits 346757 491551 529451
Borrowings 36065 37011 20073
Other Liabilities 8793 11369 10086
Total Liabilities 407786 560996 583430

Application of Funds

Cash & Balance with RBI 19571 37883 41739

Bal. with Banks/ Short Notice 8834 9671 3129
Advances 246154 326391 357148
Investments 126274 178868 172208
Fixed Assets 509 527 563
Other Assets 6445 7656 8644
Total Assets 407786 560996 583430
CORPORATE GOVERNANCE:-

Punjab & sind Bank's Corporate Governance Policy has been adopted
keeping in mind the importance of attaining fairness for all stakeholders, as
well as achieving organizational efficiency. Punjab & Sind Bank recognizes
the importance of good corporate governance, which is generally accepted as
a key factor in attaining fairness for all stakeholders and achieving
organizational efficiency. This Corporate Governance Policy, therefore, is
established to provide a direction and framework for managing and
monitoring the bank in accordance with the principles of good corporate
governance.

WORK PROCESS IN PUNJAB & SIND BANK

In Punjab & Sind Bank, work process for corporate salary accounts is

divided in 4 stages.

• MAPPING

• PROFILING

• DOCUMENTATION

• CLOSING
In the first stage of this process which is MAPPING, we have to do

MAPPING and in this we have to collect data of our prospect customers.

It was like cold calling. We went to various area of the city to find our

target company. In this process we have to collect following information

about the company or prospect customer.

• Name of the company.

• Complete address of the company.

• Name of the concerned person who looks after payroll of the

company.

• His designation.

• His contact number or visiting card.

• Existing bank with which they are banking.

• Total number of employees on the payroll of the company.

After this we have to report to the corporate sales manager to show him

data and after that we have to make a call to the concerned person to take

an appointment. And once appointment is fixed, we have to go with

senior sales officer or with corporate sales manager on the call.

Second step in this was profiling. In this we have to get some of

information from the corporate at the time of meeting. And according to

that we can offer him the best deal because before each and every offer,

criteria has been made by the bank and in which criteria that company is

coming we have to decide and according to that we use to offer them best

deal. In this we used to ask questions which are as follows…

• Number of employees on the payroll of the company.

• Last month net salary disbursement of the company (to decide

criteria in which they are coming)

• Nature of business.

• Name and numType of the company, where it is public limited,

private limited, solo ownership etc

• Name of the concerned person, who looks after payroll of the

company.

• Number of branches.

Third process starts when deal has been closed or finalized. Than we

could start documentation process as per the banking requirements.

Which included following documents of the company…

• Memorandum of association.

• Partnership deed.

• Directors photo ID proof. (PAN card/ passport/ driving license/

voter ID)
 • Employees detail.

• Current account detail.

• And in the fourth stage which is closing, we have to start opening

salary accounts of each and every employees to disburse salary in

their accounts. For that matter sales officers use to go to the

employees of the company and get form fill and collect required

documentsof the directors.

BUISNESS CYCLE

A strategy can be described as a collection of activities that will enable the

organization to reach its objective. A cost reduction strategy may involve

staff redundancies and the development of more efficient supply chains as

well.

Marketing strategy is a cyclical process consisting of four main phases.

 Research

Measurem
ent Planning

Implementatio
n

Research

Successful business relies on informed decision making. Managers with

access to information on the market, competitors and their own business will
be better placed to set goals and devise strategies, than those who are less

well informed.

Planning

After analyzing the business intelligence to identify the most important

internal and external factors affecting the organization, managers can begin

to formulate appropriate strategies for meeting their goals. Throughout the

planning process, managers should constantly consult with other heads of

department and with employees further down the line who will be

responsible for implementing the strategy activities.

Implementation

Strategy implementation involves the delivery of a number of inter-related

activities to an agreed standard and schedule. This is often referred to as

project management. Implementation is the most important of all the

processes as it ensures that the planning is not just in papers and has been

used to obtain results.

Measurement

Once implementation of the strategy is complete, it is important to assess the

degree to which it enabled the objective to be achieved. Without proper

measurement it will be difficult to accurately understand what worked and

what improvements might be needed for future strategies. After

measurement, if it is found that the planning has not been effective to

achieve the desired goal the research process is carried out again to find out

anomalies of the planning and forming new strategies. This completes the

strategy cycle.

Following are the banks which are taken into

Consideration For Analysis:-

PUBLIC SECTOR PRIVATE SECTOR FOREIGN BANKS

BANKS BANKS

1.IDBI BANK 1.AXIS BANK 1. ABN –

2.STATE BANK OF 2.BANK OF AMRO Bank
INDIA RAJASHTAN 2. HSBC
3.UNITED BANK 3.TAMILNAD BANK
OF INDIA MERCANTILE 3. STAND
4.BANK OF INDIA BANK ARD
5.VIJYA BANK 4.FEDERAL BANK CHARTERED
6.UNION BANK OF 5.HDFC BANK 4. CITI
INDIA 6.KOTAK N.A.BANK
7.INDIAN MAHINDRA
 OVERSEAS BANK
BANK 7.SOUTH INDIAN
8.BANK OF BANK
BARODA 8.YES BANK LTD.
9.ALLAHABAD 9.ING VYSYA
BANK BANK
10. UNITED 10. CENTURION
COMMERCIAL BANK OF PUNJAB
BANK(UCO 11. DEVELOPME
BANK) NT CREDIT BANK
11. DENA BANK 12. KARUR
12. STATE VYASYA BANK
BANK OF 13. ICICI BANK
BIKANER & LTD.
JAIPUR 14. INDUSIND
13. ORIENTED BANK LTD.
BANK OF
COMMERCE
14. STATE
BANK OF
SAURASHTRA
15. ANDHRA
BANK
16. SYNDICATE
BANK
17. PUNJAB
NATIONAL
BANK
18. STATE
BANK OF
HYDRABAD
19. CORPORATI
ON BANK
20. CENTRAL
BANK OF INDIA
21. CANARA
BANK
22. INDIAN
BANK
23. BANK OF
MAHARASHTRA
24. STATE
BANK OF
MYSORE
25. STATE
BANK OF
 INDOREN
26. STATE
BANK OF
TRAVANCORE
27. PUNJAB &
SIND BANK
FINANCE DEPARTMENT

Introduction:

Finance department plays a major role in the working of any organization as

for all-purpose, money is required, which is arranged, procured and
disbursed as the finance department. They only make budget go for cost
control and maintain to optimum balance of cash for smooth operations. As
such the finance department in Punjab & Sind Bank is looking after only
some of the aspects insurance aspects of the unit.

Hierarchy of the finance department:

It is a line organization having a full-fledged department to manage the
finance budget, costing and other matter of this department. The Punjab &
Sind Bank has to manage two departments mainly i.e. works and Finance

Manager Finance

Assistant Manager

Senior Officer Senior Officer Senior Officer

(Cost) (Assets) (Cash)

Clerks

Fixed Asset Cost Employee salary Transportation

FINANCE DEPARTMENT

Account Section

The accounts section deals all the general accounting, employee payroll, billing

and matter related to taxation etc. The department activities are coordinate by

Assistant Manager-Accounts that report to Manager-Finance

Cost Section

The Cost Section does Accounting relating to preparation of Monthly Cost Data and Bill

Provisioning.Assistant Manager-Cost coordinates the departmental activities and reports to

Manager-Finance.

ACCOUNTS SECTION

Accounting Procedure
The accounting procedure of Punjab & Sind Bank is not a new
complicated one. They follow a standardized rule of making entries in
there declared free. books of accounts or posting or making their trial
balance, Punjab & Sind Bank make its Trial Balance in the monthly basis
 transaction and rent it to the Head Office. Head Office prepares final
accounts for all units not individual unit.

Punjab & Sind Bank follows the following

procedure

Step1: The quotations are called for acquiring or procuring the particular
assets, liabilities etc.

Step2: After then estimate decide/fixed through CESS.

(CAPITAL EXPENDITURE SECTION SCHEME)
Step3: After then allocation of budget for different requirements.

Step4: Then order replace, R.M/Assets be procured, inspected by the

concerned department.

Step5: Then GR No. After quality check etc. is sent to finance department
where the cashier makes the payment.

Step6: The ledger department debits this in the books.

Step7: Finally at the wish of finance department assets is charged.

FINANCE MANAGER
Finance Manager is totally responsible for all
activities to payment/receipts of cash and fund Management of the unit. His
decision on payment will be final as personal manual, account manual
directives laid by the organization. Under Finance Manager the financial
activities is disciplined in the manner as per smooth functionary of all
activities of payment such as salary and wages, payment to sundry creditors
which include all pretty payments to local contractors, reputations, workers
and officers of all grade in working unit.
In detail it can be said that under finance manager their will be
payment of salary and wages, allocation of various financial activities such
as disbursement of cash by cashier, the payment like contractors bill, local
bill, raw material bill, stores and spares payment of raw material and
packing material, traveling bills, outstation allowances. All the various
miscellaneous payments sanctioned are being made.
The financial activities are on summation of inputs information system
department (I.S.D.) provides various financial, copying outputs available on
daily report, weakly report and monthly reports. It also provides information
like cash payment, voucher, cash receipt voucher, and various types of bills
also. Various type inventory output summary of transaction bills of output
(local, contractor, raw material etc.) various type of finance ledgers of the
month and monthly trial balance.
Account staff to routs all payment in account department:-
To section the payment to staff, officer, mgt & to verify correction
FINANCIAL MANAGEMENT PREPARATION

 Payroll of employee.
 Accounting of sales.
 Financial accounts.
 Supply bills.
 Material Accounting.
COST SECTION
The Cost Section is a branch of accounting and
has been developed due to limitations of financial accounting. Financial
accounting is primarily concerned with record keeping directed towards the
preparation of profit and loss account and balance sheet. It provides
information regarding the profit and loss that the business enterprise is
making and also its financial position on a particular date. The information
concerning the business enterprise is helpful to the management to control in
a general way the major function of business viz., finance, administration,
production and distribution but details regarding operating efficiency of
these divisions are lacking. Infect, the development in the field of cost
accounting is so quick and fields covered by it are expanding so much in
magnitude that it becomes difficult for the management to lay down
management policies, to guide the management decisions or evaluate
operating management performance with the information provided by
financial accounting.

SUMMARY OF

WORKING

CAPITAL
 ANALYSIS

HIGHILIGHTS OF FINANCIAL
PERFORMANCE of Punjab & Sind Bank

(Rs. In Crores)
PARTICULARS 2009 2010
1.TOTAL INCOME 1491.63 1544.47

2.TOTAL EXPENDITURE 245.29 317.54

3.OPERATING PROFIT 33.76 72.06

5.PROFIT AFTER 75.33 112.12

INTREST BUT BEFORE
DEPRICATION & TAX
6.DEPRECATION 10.95 13.98

7.PFOFIT BEFORE TAX 64,37 98.14

8.PROFIT AFTER TAX _______ 59.89

WORKING CAPITAL ANALYSIS CAN BE

STUDIED UNDER THE FOLLOWING
THREE HEADS:-

RATIO ANALYSIS :- Under the ratio analysis It is urgent to find

out short term ratios that will effect working capital of every company
FUND FLOW ANALYSIS :- Under the fund flow analysis it is
urgent to find out changing in working capital and its operation and sources
and application of funds.

WORKING CAPITAL BUDGET :- It helps in forecasting the

short term requirement for every company.

WORKING CAPITAL

INTRODUCTION:-
Working capital refers to that part of firms
capital which is required for financing short term or current Assets such as
cash, debtors, marketable security and inventories. Thus funds invested in
current assets keep revolving fast and are being constantly converted in cash
and this cash flows out again in exchange for other current assets. It is also
known as revolving or circulating capital or short term capital.
Working capital may be regarded as the life blood of business. Working
capital is of major importance to internal and external analysis because of its
close relationship with the current day to day operations of a business. Every
business needs funds for two purposes.
* Long term funds are required to create production facilities through
purchase of fixed assets
such as plants, machineries, lands, buildings & etc
* Short term funds are required for the purchase of raw materials, payment
of wages, and other day-to-day expenses.
It is other wise known as revolving or circulating capit.l
It is nothing but the difference between current assets and current
liabilities. i.e.
Working Capital = Current Asset – Current Liability.
Businesses use capital for construction, renovation, furniture, software,
equipment, or machinery. It is also commonly used to purchase inventory, or
to make payroll. Capital is also used often by businesses to put a down
payment down on a piece of commercial real estate. Working capital is
essential for any business to succeed. It is becoming increasingly important
to have access to more working capital when we need it.

Concept of working capital

 Gross Working Capital = Total of Current Asset

 Net Working Capital = Excess of Current Asset over

Current Liability
Current Assets Current Liabilities

Cash in hand / at bank Bills payable

Bills Receivable Sundry Creditors
Sundry Debtors Outstanding Expenses
Short term loans Accured expenses
Investors/ stock Bank Over draft
Temporary investment
Prepaid expenses
Accrued incomes

Working capital in terms of five components:

1. Cash and equivalents: - This most liquid form of working

capital requires constant supervision. A good cash budgeting and forecasting
system provides answers to key questions such as: Is the cash level adequate
to meet current expenses as they come due? What is the timing relationship
between cash inflow and outflow? When will peak cash needs occur? When
and how much bank borrowing will be needed to meet any cash shortfalls?
When will repayment be expected and will the cash flow cover it?

2. Accounts receivable: - Many businesses extend credit

their customers. If you do, is the amount of accounts receivable reasonable
relative to sales? How rapidly are receivables being collected? Which
customers are slow to pay and what should be done about them?
3. Inventory: - Inventory is often as much as 50 percent of a firm's
current assets, so naturally it requires continual scrutiny. Is the inventory
level reasonable compared with sales and the nature of your business?
What's the rate of inventory turnover compared with other companies in
your type of business?

4. Accounts payable:- Financing by suppliers is common in

small business; it is one of the major sources of funds for entrepreneurs. Is
the amount of money owed suppliers reasonable relative to what you
purchase? What is your firm's payment policy doing to enhance or detract
from your credit rating?

5. Accrued expenses and taxes payable: -

These are obligations of your company at any given time and represent a
future outflow of cash.

Two different concepts of working capital

are:-

Balance sheet or Traditional concept

Operating cycle concept.
Balance sheet or Traditional concept:- It shows
the position of the firm at certain point of time. It is calculated in the basis
of balance sheet prepared at a specific date. In this method there are two type
of working capital:-

• Gross working capital

• Net working capital

Gross working capital:- It refers to the firm’s investment in

current assets. The sum of the current assets is the working capital of the
business. The sum of the current assets is a quantitative aspect of working
capital. Which emphasizes more on quantity than its quality, but it fails to
reveal the true financial position of the firm because every increase in
current liabilities will decrease the gross working capital.

Net working capital:- It is the difference between current assets

and current liabilities or the excess of total current assets over total current
liabilities.

Working capital= current assets – current liabilities.

Net working capital: - It is also can defined as that part of a
firm’s current assets which is financed with long term funds. It may be either
positive or negative. When the current assets exceed the current liability, the
working capital is positive and vice versa.

Operating cycle concept:- The duration or time required to

complete the sequence of events right from purchase of raw material for
cash to the realization of sales in cash is called the
operating cycle or working capital cycle.
 DEBTO
CASH
-RS

RAW
SALES MATER
-IALS

WORK
FINISH-
IN
ED
PROGR
GOODS
-ESS
Types of Working Capital:-

TYPES OF
WORKING
CAPITAL

ON THE
ON THE
BASIS OF
BASIS OF
B/S
TIME
CONCEPT

GROSS NET REGULAR TEMPORARY

WORKING WORKING WORKING WORKING
CAPITAL CAPITAL CAPITAL CAPITAL

SEASONAL
WORKING
CAPITAL

SPECFIC
WORKING
CAPITAL
SIGNIFICANCE OF WORKING CAPITAL:-

PAYMENT
TO
SUPPLIERS

EASY LOAN
FROM
DIVIDEND
BANKS
DISTRIBUTION

SIGNIFICANCE
OF
WORKING
CAPITAL

INCREASE INCREASE
EFFECIENCY DEBT
CAPACITY

INCREASE
IN
FIX ASSETS
Factors requiring consideration while
estimating working capital

• The average credit period expected to be allowed by suppliers.

• Total costs incurred on material, wages.
• The length of time for which raw material are to remain in stores
before they are issued for production.
• The length of the production cycle (or) work in process.
• The length of sales cycle during which finished goods are to be
kept waiting for sales.
• The average period of credit allowed to customers.
• The amount of cash required to make advance payment.

Importance of Working Capital Ratios

Ratio analysis can be used by financial executives to check upon the

efficiency with which workingcapital is being used in the enterprise. The
following are the important ratios to measure the efficiency of working
capital. The following, easily calculated, ratios are important measures of
working capital utilization.
Ratios Formulae Result Interpretation
Stock turnover Average Stock * = x days On average, you turn over the
365/ value of your entire stock every x
(in days)
Cost of Goods days. You may need to break this
down into product groups for
Sold
effective stock management.
Obsolete stock, slow moving lines
will extend overall stock turnover
days. Faster production, fewer
product lines, just in time ordering
will reduce average days.
Receivables Debtors * 365/ = x days It takes you on average x days to
Ratio Sales collect monies due to you. If your
(in days) official credit terms are 45 day
and it takes you 65 days. One or
more large or slow debts can drag
out the average days. Effective
debtor management will minimize
the days.
Payables Ratio Creditors * 365/ = x days On average, you pay your
(in days) Cost of Sales (or suppliers every x days. If you
Purchases) negotiate better credit terms this
will increase. If you pay earlier,
say, to get a discount this will
decline. If you simply defer
paying your suppliers (without
agreement) this will also increase
- but your reputation, the quality
of service and any flexibility
provided by your suppliers may
suffer.
Current Ratio Total Current = x times Current Assets are assets that you
Assets - can readily turn in to cash or will
Inventory)/ do so within 12 months in the
Total Current course of business. Current
 Liabilities Liabilities are amount you are due
to pay within the coming 12
months. For example, 1.5 times
means that you should be able to
lay your hands on $1.50 for every
$1.00 you owe. Less than 1 times
e.g. 0.75 means that you could
have liquidity problems and be
under pressure to generate
sufficient cash to meet oncoming
demands.
Quick Ratio (Total Current = x times Similar to the Current Ratio but
Assets - takes account of the fact that it
Inventory)/ may take time to convert
Total Current inventory into cash.
Liabilities
Working (Inventory + As % A high percentage means that
Capital Ratio Receivables - Sales working capital needs are
Payables)/ high relative to your sales.
Sales
Statement showing change in working
capital for Punjab & Sind Bank

(Rs .AS ON in crore)

Particulars 2010 2009 Increase ( + ) Decrease
(- )
Current Assets
Investments 12627429 84726329 41547961
0
Cash & Bank 19576665 19550906 25759
Loan & advances 24615348 183433034 62720448
2
Total(A) 39200443 287710269
7

Current
liabilities
Reserves & 17572855 13502573 4070282
surplus
Provisions 18363147 10477571 7885576
Total (B) 35936002 23980144

(A-B) 35606843 263730125

5
↑ in working 92338310 92338310
capital
TOTAL 35606843 356068435 104294168 104294168
5
Sources of Additional Working Capital

Sources of additional working capital include the

following:

• Existing cash reserves

• Profits (when you secure it as cash !)
• Payables (credit from suppliers)
• New equity or loans from shareholders
• Bank overdrafts or lines of credit
• Long-term loans

ANALYSIS OF VARIOUS COMPONENTS OF

WORKING CAPITAL

INVENTORY ANALYSIS

Inventory is total amount of goods and materials content in a store of factory

at any given time.
Inventory means stock of three things :-
1. Raw materials
2. Semi finished goods.
3. Finished goods.
Position of Income in Punjab & Sind Bank
Limited
(Rs..)
Particulars 31.03.10 31.03.09
Commission,Exchange & 588357 519047
Brokerage
Profit on sale of 1189038 175129
investments
Profit on sale of 716 1402
land,buildings & other
assets
Profit on exchange 399142 300117
transaction
TOTAL 2177253 995695

SUNDRY DEBTORS ANALYSIS

Debtors or an account receivable is an important component of working
capital and fall under current assets. Debtors will arise only when credit
sales are made.

Position of Sundry Debtors in Punjab & Sind

Bank
Particulars 2010 2009
Secured,considered 1370557 6624870
Goods
Unsecured,considere 7350000 3800000
d Goods
8720557 10424870
INTERPRETATION

In the table we see that there is continuous rise in the debtors of Punjab &
Sind Bank in the successive years. A simple logic is that debtors increase
only when sales increase and if sales increases it is good sign for growth. We
can see 21% and 17% growth in 08-09 and 09-10 respectively from previous
years. We can say that it is a good sign as well as negative also. Company
policy of debtors is very good but a risk of bad debts is always present in
high debtors. when sales is increasing with a great speed the profit also
increases. If company decreases the Debtors they can use the money in many
investment plans.

CASH AND BANK BALANCE ANALYSIS

Cash is called the most liquid asset and vital current assets, it is an important
component of working capital. In a narrow sense, cash includes notes, bank
draft, cheque etc while in a broader sense it includes near cash assets such as
marketable securities and time deposits with bank.

Position of Cash and Bank Balance in

Punjab & Sind Bank
( Rs. AS on)

Particulars 2010 2009

Cash Balance in 939122 1029890
Hand
Bank Balance-
With Scheduled 18631543 18521016
Banks
19570665 19550906

INTERPRETATION

If we analyze the above table we find that it follows a decreasing trend. In

the year 2010 it had maintained a huge amount of cash and bank balance
which has fallen hugely in the year 2009 but there is slight fall between the
year 2009 and 2010. Although company’s cash is decreasing but this is very
good sign for company because they are not holding the cash in hand
but using the cash for better projects. The analysis shows that the fix
deposits of company are rapidly fallen in last three years as 72% and 74% in
08-09 and 09-10 respectively from previous year. Company is utilizing the
fixed cash for exploding the projects that is good for growth,

LOANS AND ADVANCES ANALYSIS

Loans and Advances here refers to any to amount given to different parties,
company, employees for a specific period of time and in return they will be
liable to make timely repayment of that amount in addition to interest on that
loan.

Position of Other Loans & Advances in

Punjab & Sind Bank

(Rs.AS on)
Particulars 2010 2009
Bills Purchased & 8113510 6491446
discounted
Cash 73199602 60533847
creditors,overdrafts
& loans repayable
on demand
Term loans 164840370 116407741
Total 246153482 183433034

INTERPRETATION

If we analyze the table we can see that it follows an increasing trend which
is a good sign for the company. We can see that from the year 2009 to 2010
it increased more than double.We can see that the increase of 145% and 55%
in 08-09 and 09-10 respectively from previous year. The increasing pattern
shows that company is giving advances for the expansion of plants and
machinery which is good sign for better production of cement and other
goods. Although company’s cash is blocked but this is good that company is
doing modernization of plants In time to compete with other competitors in
market.

CURRENT LIABILITIES ANALYSIS

Current liabilities are any liabilities that are incurred by the firm on a short
term basis or current liabilities that has to be paid by the firm with in one
year.
Position of Other Current Liabilities in Punjab &
Sind Bank

Year 2010 2009

Current Liabilities
Inter-office 680981 33605
adjustment
Interest accured 1370557 624870
Deffered tax 582611 28100
liability
Total 2634149 686575

INTERPRETATION

If we analyze the above table then we can see that it follow an uneven trend.
The important component of current liabilities is sundry creditors and other
liabilities. In 08-09 it decreased by 7% and in 09-10 it increased by 25%. In
08-09 it was increased because of growth in other liabilities by 32%.This is
liability for company so this should be less. when company have minimum
liabilities it creates a better goodwill in market. High current liabilities
indicate that company is using credit facilities by creditors.

PROVISIONS ANALYSIS

Position of Other Provisions in Punjab & sind

Bank
 (Rs. in crore)
Year 2009-2010 2008-2009
Provision for Non 64.46 69.97
Performing Advances
Provision for Non -1.63 -4.48
Performing
Investments
Provision for -0.16 3.30
Depreciation in the
value of Investments
Provision for 11.95 30.87
Standard Asset
Provision for Income 92.56 121.10
Tax
Provision for Deferred 55.45 -0.31
Tax
Provision for Fringe 1.53 1.24
Benefit Tax
MAT Credit 58.03 -58.03
Entitlement
Others 8.34 -2.76
Total 290.53 160.30

INTERPRETATION

From the above table we can see that provision shows an increasing trend
and the huge amount is being kept in these provisions. Though the profits of
the company are increased income tax is also increased which is good that
company is creating goodwill in market by paying income tax in time.
The income tax is increased by 588% and 101% in 08-09 and 09-10
respectively from previous year. Although company is paying more income
tax but also they are earning more. Other provisions are also for the benefit
of employees and public. This is good sign for Company growth.

Working Capital Ratios and its Interpretation

A Ratio is a simple arithmetical expression of the relationship of one number

to another. In simple language ratio is one number expressed in terms of
another and can be worked out by dividing one number into the others. A
Ratio is known as a symptom like blood pressure, the pulse rate or the
temperature of an individual.
Example=current assets/current liabilities
.

RATIO ANALYSIS

A Ratio analyses is one of the most powerful tools of financial analyses. it is

used as device to analyze and interpret the financial help of enterprise. Just
like a doctor examines his patient by recording his body temperature, blood
pressure etc before his conclusion regarding the illness and before giving
him treatment. With the help of ratio analyses one can measure the financial
condition of the firm and point out whether the condition is strong good or
poor. one can arrive at a decision of how the performance of a firm is
deteriorating and can find out short term financial position or liquidity
position and suggest what a company must do for improving its working
capital.

Business Ratios

Items 2009-2010 2008-2009

(i) Interest Income as a percentage to 9.35% 8.67%
average working funds
(ii) Non-Interest Income as a 1.17% 1.24%
percentage to average working
funds
(iii) Operating Profit as a percentage to 2.09% 2.12%
average working funds
(iv) Return on Assets 1.26% 1.49%
(v) Business [Deposits plus Advances] 655.58% 466.87%
per employee (Rs. in lacs)
(vi) Profit per employee (Rs. in lacs) 5.03% 4.24%

Position of RECEIVABLE RATIO in Punjab & Sind

Bank

FORMULA
Receivable Ratio(In days) = DEBTORS/Sales *365
Year 2010 2009
Ratios 5.72 5.53

INTERPRETATION

Generally a low debtors turnover ratio implies that it considered congenial

for the business as it implies better cash flow. The ratio indicates the time at
which the debts are collected on an verage during the year. Needless to say
that a high Debtors Turnover Ratio implies a shorter collection period which
indicates prompt payment made by the customer,if we analyze the three year
data we can say that it holds a good position while receiving its money from
its debtors. The ratios are in an increasing trend, which implies that recovery
position good and company should maintain these positions.

Position of PAYABLE RATIO in Punjab &

Sind Bank

Formula
Payable Ratio = Creditors
Cost of Sales
Year 2010 2009
Payable ratios( in 9.35 8.67
days)

INTERPRETATION
Actually this ratio reveals the ability of the firm to avail the credit facility from
the suppliers throughout the year Generally creditors turnover ratio implies
favorable since the firm enjoys lengthy credit period Now if we analyze the
three years data we find that in the year 2010 ratio was very high which
means that its position of creditors that year was not good, but in the next two
years it is seen that it has followed a decreasing trend which is very good sign
for the company. So we can say it enjoys a very good credit facility from the
from the suppliers.

Position of CURRENT RATIO in Punjab & Sind

Bank

Formula

Current Ratio = Total Current Assets

Total Current Liabilities

Year 2010 2009

Current Ratio 10.9 11.9

INTERPRETATION

This ratio reflects the financial stability of the enterprise. The standard of the
normal ratio is 2:1 Now if we analyze the three years data it can be predicted
that it holds a stable position all through out period but it is seen that it holds
a low position than the standard one and the company is required to improve
its position.

Position of QUICK RATIO in Punjab & Sind Bank

FORMULA

Quick Ratio = Total Current assets - Inventories

Total current Liabilities

Year 2010 2009

Quick ratio 8.64 9.63

INTERPRETATION

It is the ratio between quick liquid assets and quick liabilities. The normal
value for such ratio is taken to be 1:1. It is used as an assessment tool for
testing the liquidity position of the firm. It indicates the relationship between
strictly liquid assets whose realizable value is almost certain on one hand
and strictly liquid liabilities on the other hand. Liquid assets comprise all
current assets minus stock. By analyzing the three years data it can be said
that its position was weak in the year 2008 but it improved significantly in
the next two years and was stable during that year.

FUND FLOW ANALYSIS

A fund flow analysis is a technical device used to study the sources from
which additional funds were derived and the use to which these sources were
put. It is an effective management tool to study changes in the working
capital of business enterprises between beginning and ending financial
statements dates. The fund flow analysis consists of:
• Preparing schedule of change in working capital.
• State of sources and application of funds.

FLOW OF FUNDS ?
 CURRENT ASSETS NO CURRENT LIABILITIES

YES
YES
YES YES

NON-CURRENT ASSETS NON-CURRENT LIABILITIES

NO

STATEMENT OR SCHEDULE OF CHANGE IN

WORKING CAPITAL:-

Working capital means the excess of current

assets over current liabilities. There are following four rules to kept in
mind while preparing schedule of change in working capital given as
under :-
• An increase in current assets increases working capital.
• A decrease in current assets decreases working capital.
• An increase in current liabilities decreases working capital.
• A decrease in current liabilities increases working capital.
Cash Flow Statement for the year ended 31st
March, 2009

A. CASH FLOW FROM 2009-2010 2008-2009

OPERATING ACTIVITIES
Net Profit/ (Loss) as per Profit & 4371781 382358`
Loss Account

Adjustments for:
Provisions & Contingencies 2905356 1603007
Depreciation (Net) 106315 71948
Profit on sale of assets -716 -1402
Interest on subordinated debts 531111 257485
Staff Welfare Fund -60000 -60000
Operating Profit before 7853847 5694619
working capital changes
Adjustments for:
Increase / (Decrease) in Deposits 98442463 56126524
Increase / (Decrease) in -4652416 27716420
Borrowings
Increase / (Decrease) in Other 2543571 -28629
Liabilities

(Increase) / Decrease in -41520092 -17824399

Investments
(Increase) / Decrease in -63375041 -66778284
Advances
(Increase) / Decrease in Other -3090613 -558997
Assets
Cash Flow from Operating -3798281 3347254
Activities (A)

B. CASH FLOW FROM

INVESTING ACTIVITIES
Increase in Fixed Assets -215810 -118811
Profit on sale of assets 716 1402
Cash Flow from Investing -215094 -117409
Activities (B)

C. CASH FLOW FROM

FINANCING ACTIVITIES
Issue of Subordinated Bonds 4000000 1000000
Redemption of Subordinated -450000 -1050000
Bonds
Interest on Subordinated Bonds -531111 -257485
Cash Flow from Financing 3018889 -307485
Activities (C )

Cash from Operating Activities -3798281 3347254

Cash from Investing Activities -215094 -117409

Cash from Financing Activities 3018889 -307485

Increase in Cash & Cash -994486 2922360
Equivalens

Cash and Cash equivalents at the 293398873 26476513

beginning of the year
Cash and Cash equivalents at the 28404387 29398873
end of the year

INTERPRETATION:-

Statement of changes in working capital is prepared to show the changes in

the working capital between the two balance sheet dates. The difference is
recorded for each individual current assets & current liabilities. If we talk
about current assets like cash & bank balances, sundry debtors, inventory
and other current assets have left positive effect on working capital except
only prepaid expenses. On the other hand all current liabilities have shown
increase in balances with comparing from the previous balances.
Asset Quality
Non-Performing Assets
(Rs. In crores)
ITEMS 2009-2010 2008-2009
(i) Net NPAs to Net Advances 0.32 0.37
(ii) Movement of Gross NPA
(a) Opening Balance 135.53 290.84
(b) Additions during the year 141.87 105.84
(c) Reductions during the year 116.36 261.15
(d) Closing balance 161.04 135.53

(iii) Movement of Net

NPAs
(a) Opening Balance 66.97 77.04
(b) Additions during the year 77.35 64.66
(c) Reductions during the year 66.29 74.73
(d) Closing balance 78.03 66.97

(iv) Movement of
provisions for NPAs
(a) Opening Balance 65.71 210.55
(b) b) Add: provisions made 85.72 77.71
during the year
( c) Less: write off, write back 72.48 222.55
of excess provisions
(d) Closing balance 78.95 65.71

Investments
(Rupees in crore)
 Items 2008-2009 2007-2008
Value of Investments
(i) Gross Value of Investments
(a) In India 12656.43 8524.92
(b) Outside India Nil Nil
(ii) Provisions for Depreciation
(a) In India 29.00 51.29
(b) Outside India Nil Nil
(iii) Net Value of Investments
(a) In India 12627.43 8473.63
(b) Outside India Nil Nil
 OBJECTIVES OF THE STUDY
SCOPE AND OBJECTIVE

Every project has a scope which defines the areas of research

and the parameters that need to be studied. The scope also tells us the

purpose of the project. Branding is an important issue in the strategy

formation process. Poor firms ignore their competitors; average firms copy

their competitors; winning firms lead their competitors-Philip Kotler

The above quote from the marketing guru aptly sums up the

importance of the study of competition in the present world. The various

steps involved in it are mentioned below.

1. Identifying competitors.

2. Analyzing competitors strategies, objectives, strength and weakness.

3. Designing the competitive intelligence system

• Collecting the data

• Evaluating and analyzing the data

• · Disseminating information and responding.

• Designing competitive strategies interpreting with data.

OBJECTIVE

The objective of the project is to carry out a market research for

the Punjab & Sind Bank Ltd. to evaluate the market for working capital

management and to study the various parameters.

The main objectives are discussed below.

1) To analyze the feedback given by corporate.

2) To analyze the parameters considered for the sale of these product.

3) To get a better understanding of the customers wants, needs and desires.

4) To carry out a benefit deficiency analysis (BDA) to find out what

customers want from Punjab & Sind Bank and what they get from PSB.

5) To understand the various stages that goes into the making of a loyal

customer.

6) To do a comb analysis to find the opinion of customers about different

products of competitor.

7) Finally to formulate a strategy for the Punjab & Sind Bank based on the

above findings.
Management objective:

1) To identify useful insights for the conduct of similar market research at

other Branches of the company

2) To generate initial response of corporate about the products to improve

the product parameters studied.

RESEARCH METHODOLOGY
Research is the process of Systematic and in depth study or research for any
particular topic, subject or area of investigation backed by collection,
compilation, Presentation, and interpretation of relevant details or
data. It is a careful research or enquiry into any Subject, which is an
endeavor to discover or find out valuable fact, which would be useful
for further application or utilization .Research is carried out by
different methodologies, which have their own pros and cons.
Research methodology is a way to solve research by studying and
solving a research problem along with the logic behind it. Thus when
we talk of research methodology we not only talk of the research
method but also consider the logic behind the method used in context
of research study and explain why we are using a particular method or
techniques so that research result are capable of being evaluated.

DATA COLLECTION

The Sources of Data Collection are of two types:-

Primary Data:-
Primary data is that which are collected “afresh” and is supposed to
be original in Character. Primary data is gathered in such a way so that need
of the researcher can be fulfilled .On the basis of primary data researcher
withdraw some important conclusion and gives suggestion according.

Secondary Data:-

Secondary Data is that data, which is, collected Prior to the Present Study
work. Any data that is available prior to the commencement of the research
Project is called Secondary data and therefore Secondary is also called as
Historical data.
I have collected my secondary data from various broachers of the
banks, Printed Annual Report books and website like psbindia.com,
google.com etc.

-
RESEARCH METHODOLOGY AND INFORMATION

ANALYSIS:-

Marketing research is the systematic and objective identification, collection,

analysis dissemination and use of information for the purpose of improving

decision making related to the identification and solution of problems and

opportunities in marketing. Each phase of this process is important. We

define or identify the marketing research problem or opportunity and then

determine what information is needed to investigate it. Because every

marketing opportunity translates into a research problem to be investigated

in terms of “problem” and “opportunity”. Next, the various sources of

information are identified and a range of data collection methods, varying in

report that allows the information to be used for the purpose of management

decision making. The main issue being discussed here is the emerging trends

of corporate salary account business. For this purpose data was collected

using both the primary and secondary sources. The secondary data was

collected from the various product catalogues and internet while the primary

data was collected from the field from builders, architects, dealers and

customers. Information was collected by using a carefully prepared

questionnaire which was designed keeping in mind all the aspects of the

issue. The questionnaire was used to find out the following information:

To get personal as well as the company’s detail.

• To get information about the employees like how many employees are

working on the payroll of the company.

• To know that how they are paying salary to there employees.

• With which bank they are banking and why?

 • Are they aware of corporate salary accounts?

• What is the level of their satisfaction with the current salary account?

• What kind of services they expect from the bank?

• How far their expectations are met?

• The degree of loyalty of the customer towards their bank.

A separate schedule was designed for the corporate to carry out project

mapping in order to find out the prospect of the salary accounts.

The following information was obtained from them:

• Name and number of the directors.

• Type of the company, where it is public limited, privet limited, solo

ownership etc.

• Name of the concerned person, who looks after payroll of the

company.

• The number of branches.

• The number of employees on the payroll of the company.

• The name of current bank with which they are banking.

• Reasons for choosing that bank.

• Last month net salary disbursement to find out average salary per

employee.
Conducting an experiment or organizing a survey and doing research has

become the part of life in modern times. Research methodology refers to the

various sequential steps to be adopted by a researcher in studying a problem

with certain object/objects in view.

The research was carried out in various phases. The first few phases were

used to collect information. Based on this information, a hypothesis was

assumed that with the use of appropriate strategy in customer service and

use of proper elements of marketing mix the sales of salary accounts can be

increased to garner a bigger pie of the market share. The final few phases

were used to analyze the information so collected from various quarters.

The research process carried out in various phases is discussed below:-

Phase I. Understanding the company and its products. The various

parameters considered in the sale of these salary accounts. Getting

knowledge about the competitors in the area and knowing about the various

promotion and technique of selling.

Phase II. This phase include visits to various companies to collect relevant

data. The primary data was collected through Questionnaire and interviews

with corporate. This data was further extended through dialogues with

company officials. The secondary data was collected through websites,

company files and brochures and other documents of past and present.

Phase III. In this phase the data so collected is analyzed using various

statistical and market research tools to draw inference for the purpose of

decision making. The analysis consists of product mapping, project

mapping, competitor analysis, new opportunities, developing a brand equity

etc.

Phase IV. In this phase actual reporting of the findings and analysis will be

prepared and submitted the same to the company.

Sample Size
The customer survey has been done in the Shri Hargobind Pur city. And
sample size for this survey was 75. Data are correlated from different areas
of Janakpuri,Delhi, which are reported by names.
.

RESULTS, ANALYSIS AND DISCUSSIONS

The basic purpose of the study conducted was to find the emerging trends in
the Corporate salary market and based on those trends a formulating strategy
for the Corporate salary accounts segment. Data was collected based on the
above aim in mind, regarding the purpose of the salary accounts in the
company and the various parameters on the basis of which these salary
accounts are evaluated etc. According to survey, ICICI Bank is largest share
holder in this segment. Whereas ICICI Bank, Citi Bank are the banks which
don’t take much time to do it. It is also fact that HDFC Bank are having
strong customer base and tie up with most of the Big companies of India
including TCS, Wipro, TATA Motors, Reliance communications, EXL,
Bharti Airtel, Loreal, Idea cellular and many others.. Customer satisfaction
level is also high as compare to other banks.
 The above figure shows that corporate salary accounts market in banking
industry is mainly captured by ICICI Bank. Whereas HDFC Bank is second
large player in this segment. And Axis Bank and SBI are doing well as
compare to others.
The above figure shows that IT sector is one who holds major market share
in this segment. Thus the company should have mainly focus on this
segment as well as the manufacturing segment in the market.

WHY PEPOLE ARE NOT SATISFIED?

In the following diagram, we can see that 72% people are satisfied by the
existing banks like ICICI, AXIS, PNB and other cooperative banks.
Dissatisfaction is 12% and closing of the account is 3% and other reasons
are 10%. In KAM, we found that existing clients did not want to change
there bank because their bank are giving them customized services and
changing the bank takes long time.

LIMITATIONS:-

The project is based on certain factors which also have their own
shortcomings. These factors need to be looked into. Since the report
proposes to study the Financial institution in Punjab & Sind Bank there
may be certain factors which limit the scope of the project. These are
discussed below.
 Non serious attitude of the customer.
 We cannot force corporate to tell why they are using our competitors
product, there can be various reasons like they have taken loan from
those bank, or near by the company, etc.
 This product is valuable and for long term with no charges. So we can
not force each and every company to get it with Punjab & Sind Bank
without knowing about the reputation of the company.
  This research is only limited to Gurdaspur city and near by area only.

Some time some of the people can give wrong or incomplete information
so that to find out actual result we can not fully believe on the
questionnaire.

OBSERVATIONS
RECOMMENDATIONS:-

To work on this project I have find out some of the points where Salary
managers should think. And by which they can increase customer base as
well as they can give better service to the customers. They are as follows….

(1) Local toll free customer care numbers should be there to solve the
queries and problems as well as for new inquiry of the customer for
corporate salary accounts.
(2) Informative advertising should be started because lots of new entrants
and traditional business houses are not aware about corporate salary
accounts so that they can come to know about it.
(3) Necessity to decrease processing time because Punjab & Sind Bank
takes too much time for its process as compared to its competitors and in
present scenario customer wants less processing time and less
documentations to make banking easy. So it is very important to decrease
processing time.
4) Weekly feedback to each and every sales officer and daily dual
reporting system can increase work efficiency. Sometimes sales people don’t
do work properly and they don’t achieve targets. Some of the sales people
do better job and they deserve appreciation. So for that matter, timely
feedback can play important role to enhance the sales and work efficiency of
the sales team.

(5) There is a need to make documentation process more flexible because

Punjab & Snid Bank wants 4 Photo identities (Driving license, Passport,
Voter ID, PAN card) as a documentary proof of the employee to open his
salary account and if person is not carrying any one of the above then it
becomes difficult to open his salary account because bank cannot accept
other documents due to rules even if the company is ready to give in writing
that a particular person is working with us.
(6) Necessary to motivate team to improve there performance. This is
corporate sales, which is tough job. Some time team members become
frustrated due to work pressure and high targets. So to get best from the
team, salary manager should use various managerial techniques to reduce
pressure and to create good work environment.
(7) After tie up with any company, service should be even better so that
customer base can increase and percentage of unsatisfied customer can be
reduced.
(8) Ability to solve the query and difficulties of the customer is essential
aspect of the business. For this matter sales team should be properly train
and all the formalities they must know, otherwise approach to corporate
many times is not possible and creates bad impression about the bank.
Training programs for sales executive should be conducted every month.

APPENDIX
QUESTIONNAIRE

Date:-

…………………..

Personal Detail:-

Name : - …………………………………………………

Designation : - …………………………………………………

Sex : - ( ) Male ( ) Female

Name of the Bank……………………………………….

Contact nos. : - (O.)…………………., (R.)…………………..,

(M.)…………………………………

E-mail ID : - ……………………………………….

1) What is the Minimum Balance For Opening an Corporate

Salary Account with Your Bank?

 Without Cheque-Book :-
a) 0 to 100 Balance b) 100 to 300 Balance

c) 300 to 500 Balance d)500 to 100 Balance

 With Cheque-Book :-
a)0 to 100 Balance b)100 to 300 Balance

c) 300 to 500 Balance d) 500 to 100 Balance

 2) If a Customer Open an account With Your Bank then
how many Cheque Leafs are provided to them?
a)10 Cheque Leafs. b) 15 Cheque Leafs.

c)) 20 Cheque Leafs. d) 25 Cheque Leafs.

3) What is the Minimum Penalty charges For non- Maintaining

the Corporate Salary Account in your Bank per transaction?

a)Rs.0-50/- b)Rs.50-100/-

c)Rs.100-200/- d)Rs.200-300/-

4 ) Is Your Bank Provide ATM Debit Card or Credit Card

Facility to Customers For accessing their accounts?
a)Yes b) No

5) Does Your bank have Anywhere Cash Deposit Facility

to Customers?

a) Yes b) No
6) What is the ATM Maximum Cash Withdrawal Limit (Per
Day) to Customers in your Bank?

a)Rs.0-5,000/-Per day b)Rs.5,000-10,000/-p/day

c)Rs.10,000-25,000/- P/day d)Rs.25,000-50,000/-

e)Rs.50,000-75,000/- Per day

9) Is Your bank Provide Fund Transfer Facility to Customers?

a)Yes b) No

10) What are the Annual ATM Debit Card Charges to your banks
Customers?

a)Rs.0-50/- b)Rs.50-100/-

c)Rs.100/- & above

8) Is Your Bank Providing Cheque Payable at Par Facility to
Customers?
11) Does Your Bank Offer loan Facilities to your Customers?
a)Yes b) No
a) Yes b) No

7) Is Your Bank having DD (Demand Draft) Facility?

a)Yes b) No
19 Is your Bank giving Auto Sweep Facility to Customers?
12) Which type of loan Your banks Provide?
a)Yes b) No
Personal Loan Yes No

Car Loan Yes No

20) Does Your Bank Provide Multicity Cheque Book Facility to
Customers?
Housing Loan Yes No
a)Yes
Pension Loan Yes b) NoNo

Education Loan Yes No

13) Is Your Bank Providing Statement Facility to the Customers to

Know his Past Transaction Entries?

Yes No

1116) Is Your Bank Provide Phone Banking Facility to Customers

For Operating his account through Tele-Phone?
14) What are the various ways to inform Your Customers about his
Past
a)YesTransaction Entries? b) No

17)-By
Is Email
Your BankYes No
having Mobile banking Facility to Customers
For Updating them With new Features and technology?
-By Courier Yes No
a)Yes b) No
-By Fax Yes No

18 Is -Handover Yes
Your bank Provide SMS AlertNoFacility to Customers For
Knowing him about his daily transaction entries?
If any other than above please mention
a)Yes b) No
15) Is Your Bank Provide Internet Banking Facility to Customers
For accessing account from anywhere through internet
21) connection?
Is your bank Provide Overdraft Facility to Customers for
Withdrawing Excess Money from Bank?
a) Yes b) No
a) Yes b) No
 22) Are you satisfied with the services being offered to

you by your bank?

( a ) Yes ( b ) No

If not than why?

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BIBLIOGRAPHY

• Websites:-
 www.psbindia.com
 www.google.com
 www.moneycontrol.com
 www.16anna.com
• Annual Reports of Punjab & Sind Bank – 2008-2009

• Financial Management – M.K. Sharma

• Asst. Manager Finance – S. Tarlok Singh