…the name you can bank upon!!!

Project Guide: Mr. Ratan Thakur

The project includes analysis of various e-banking solutions of the bank like internet banking, mobile
banking, ATMs, credit cards, debit cards, etc. and also provides a strategy for re-branding of all these
products in order to improve the brand image of the bank in the minds of the customers.
Table of Contents

1. Indian Banking Sector 7

1.1 Overview 7
1.2 Structure of the banking industry 8
1.3 Banking potential in India 9
1.4 Industry segments 9
1.5 Distribution of banks 10
1.6 Major key players 11
1.7 New initiatives by public sector banks 12
2. Electronic banking 12
1.1 Definition12
3. Internet banking 14
3.1 Growth in internet banking 15

3.2 The Indian Saga 18

3.3 The PSU lethargy 19

3.4 Bouquet Strategy 20
3.5 Bank’s key pain points and opportunities in internet banking 21
4. Mobile banking 21
5. ATMs 22
6. Credit Cards 23
7. Debit Cards 25
8. Punjab National Bank 27
8.1 Company profile 27
8.2 Vision 27
8.3 Mission 28
8.4 Overview of the performance as on Mar’10 28

2
 8.5 Punjab National Bank’s robust technology platform 29
8.6 Punjab National Bank increasing its global footprints 30
8.7 Awards and accolades during the year 30
8.8 Products and services 31
9. PEST analysis32
10. SWOT analysis 33
11. TOWS analysis 34
12. Research Statement 35
12.1 Research problem 35
12.2 Project objectives 35
12.3 Research design, methodology and research statement 35
12.3.1 Research plan 35
12.3.1.1 Primary investigation 35
12.3.1.2 Exploratory study 35
12.3.2 Research design 36
12.4 Analysis and rebranding of PNB internet banking 36
12.4.1 Findings 38
12.4.2 Suggested perception towards internet banking advertisements 38
12.4.3 Developing research plan39
12.4.4 Collection of data 40
12.4.5 Sampling plan………………………………………………………………………………………………………………
40

12.4.6 Data collection instrument developed 41

12.4.7 Research limitations 41
12.4.8 Questionnaire 42
12.4.9 Analysis and interpretation through EXCEL 46
12.4.10 Other analytical tools 52
12.4.10.1 SWOT analysis 52
12.4.10.2 Porter’s 5 forces model 53
12.4.10.3 Ansoff’s product-market mix 54
12.4.11 Strategies for rebranding PNB internet banking 55

3
 12.5 Analysis and rebranding of PNB mobile banking 57
12.5.1 Strategies for rebranding PNB mobile banking 58
12.6 Analysis and rebranding of PNB ATMs 59
12.6.1 Strategies for rebranding PNB ATMs 60
12.7 Analysis and rebranding of PNB Credit Cards 61
12.7.1 Strategies for rebranding PNB Credit Cards 62
12.8 Analysis and rebranding of PNB Debit Cards 63
12.8.1 Strategies for rebranding PNB Debit Cards 64
13. Conclusion and recommendations 66
14. Bibliography……………………………………………………………………………………………………………………………………
68

4
ACKNOWLEDGEMENT
Success is the effort bounded actively, involving the co-operation of all.

To create and formulate this project, I would like to thank one person who served as my guide epitome
of knowledge.

I would like to thank Mr. Ratan Thakur, my MBA project guide, for giving me any time and every time
guidance and continuous support. His experience and methodology of providing training helped me in
not only to perform the desired activity but also to accomplish creativity. I would also like to thank my
parents and my family who were always there to support me throughout this project.

I would also like to thank Prof. Bhagyalakshmi and all the other faculty members who are not only a
source of inspiration but also a source of constant innovation.

5
DECLARATION
I, Vaishali Lapasia, hereby declare that I have carried out my summer training project in Punjab National
Bank. The topic of the project was “Re-branding of banking e-products”.

I further declare that the project work is entirely my original work and no part of this report has been
published to or submitted to anybody or university for award of any other diploma or degree.

Ms. VAISHALI LAPASIA

STUDENT: K.J.Somaiya Institute of Management Studies and Research

6
 1. Indian banking sector:

1.1 Overview:

Banks, over the years, have become a significant aspect of an economy. In today’s scenario, the
position of banks have become all the more important in the course of working of the money
market and hence the economy of a nation. The banking sector forming a portion of the
financial sector primarily works as a financial intermediary generating money supply. From the
different macro economic models, banks have been found to be a part of the supply side of the
economy. However, over time banks have transformed from merely money generating
organizations to a multi tasking entity.

India is well positioned to become the fourth-largest economy of

the world by 2025.GDP growth rates of 7-8 per cent a year will be
sustainable going forward if key enabling factors have been put to
place. One of the enablers of robust economic growth is a banking
sector that is able to adequately and efficiently meet the needs of a
growing economy. The Banking sector in India has always been one
of the most preferred avenues of employment. In the current
decade, this has emerged as a resurgent sector in the Indian economy. It is projected that the
sector has the potential to account for over
7.7 per cent of GDP with over Rs.7, 500
As per the McKinsey report ‘India Banking
billion in market cap, and to provide over 1.5 2010’, the banking sector index has grown at
a compounded annual rate of over 51 per
million jobs. cent since the year 2001, as compared to a 27
per cent growth in the market index during
the same period.

7
60%
50%
40%
India
30% World
20%
10%
0%
2001-2010

Today, banks have diversified their activities and are getting into new products and services
that include opportunities in credit cards, consumer finance, wealth management, life and
general insurance, investment banking, mutual funds, pension fund regulation, stock broking
services, custodian services, private equity, etc. Further, most of the leading Indian banks are
going global, setting up offices in foreign countries, by themselves or through their subsidiaries.

1.2 Structure of the banking industry:

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8
Banks have a combined network of over 53,000 branches and 49,000 
49,000 ATMs. According to a
report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total
assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5%
respectively.

Nearly 70% of the total no. of branches of all the commercial banks put together is in rural and
semi- urban areas. Bulk of commercial bank finance is for short term working capital needs of
industry, trade, agriculture and personal segment. Banks are supporting growth in the
economy by financing productive sectors.

Due to vibrant competition, market share of various group banks have changed, though public
sector banks still dominate the entire market.

1.3 Banking potential in India:

 India has a huge skilled managerial and technical manpower which can boost the
banking industry to great heights.
 Huge middle class population provides India with a distinctive edge in the global
competition.
 India has a well established judiciary system and a sophisticated legal and accounting
system which can enhance the growth of the banking industry further.
 India has a user friendly intellectual infrastructure which will ensure rapid growth of the
industry.
 Lastly, India has free and vibrant press which ensures the regulations in the banking
industry.

1.4 Industry segments:

9
Nationalized/ Public sector banks:

These banks dominate the Indian banking system. There are total 26 public sector banks in
India (As on 26-09-2009). Of these 19 are nationalized banks, 6(STATE BANK OF INDORE ALSO
MERGED RECENTLY) belong to SBI & associates group and 1 bank (IDBI Bank) is classified as
other public sector bank.

Private Banks:

Private Banks made banking more efficient and customer friendly in India. It led the
transformation of banking from class banking to mass banking.

Private Banks jolted public sector banks out of complacency and forced them to be more
competitive.

Foreign banks:

Foreign banks have brought latest technology and latest banking practices in India.

They have helped make Indian banking system more efficient and competitive.

Various e-banking solutions are what these foreign banks has given to the Indian banking
industry.

1.5 Distribution of banks:

10
 100

90

80

70

60
Public sector banks
50 Private sector banks
Foreign banks
40 ASCB total banks
30

20

10

0
Branches Staff Deposits Advances Net Profits

Public sector banks Private sector banks Foreign banks ASCB total banks

Branches 88.41 11.33 0.26 100

Staff 87.23 10.76 2.01 100

Deposits 75.24 19.42 5.44 100

Advances 73.25 20.24 6.51 100

Net Profits 73.62 16.95 9.43 100

1.6 Major Key players:

11
1.7 New initiatives by public sector banks:

12
 2. Electronic banking:

2.1 Definition:

Electronic banking is an umbrella term for the process by which a customer may perform
banking transactions without visiting a brick – and – motor institution.

From the various e-products that the bank offers, this project focuses on the following e-
banking facilities:






Internet Banking
Mobile Banking
ATM
Debit Cards
Credit Cards
7
6
5
4
3
2
1
13
 Source: ABA - Preferred Banking Method 2007-2009

3. INTERNET BANKING:

“Internet banking” refers to systems that enable bank

customers to access accounts and general information on
bank products and services through a personal computer
(PC) or other intelligent device. Internet banking products
and services can include wholesale products for
corporate customers as well as retail and fiduciary products for consumers. Ultimately, the
products and services obtained through Internet banking may mirror products and services
offered through other bank delivery channels. Some examples of wholesale products and
services include:

 Cash management
 Wire transfer
 Automated clearinghouse (ACH) transactions
 Bill presentment and payment

Examples of retail and fiduciary products and services include:

14
  Balance inquiry
 Funds transfer
 Downloading transaction information
 Bill presentment and payment
 Loan applications
 Investment activity
 Other value-added services

Other Internet banking services may include providing Internet access as an Internet Service
Provider (ISP). The OCC has determined that a national bank subsidiary may provide home
banking services through an Internet connection to the bank’s home banking system and,
incidental to that service, may also provide Internet access to bank customers using that
service. Historically, banks have used information systems technology to process checks (item
processing), drive ATM machines (transaction processing), and produce reports. In the past,
the computer systems that made the information systems operate were rarely noticed by
customers. Today, Web sites, electronic mail, and electronic bill presentment and payment
systems are an important way for banks to reach their customers. National banks have
experimented with various forms of online banking for many years. Some of the early
experiments involved closed systems where the customers accessed banks through a dial-in or
cable TV connection. These systems limited a bank’s potential customer base because they
required out-of area customers to either incur long-distance charges on their phone bills or
subscribe to a particular cable TV service to access the bank. With the widespread growth of
the Internet, customers can use this technology anywhere in the world to access a bank’s
network. The Internet, as an enabling technology, has made banking products and services
available to more customers and eliminated geographic and proprietary systems barriers. With
an expanded market, banks also may have opportunities to expand or change their product
and service offerings.

15
3.1 Growth in Internet Banking:

Numerous factors — including competitive cost, customer service, and demographic

considerations — are motivating banks to evaluate their technology and assess their electronic
commerce and Internet banking strategies. Many researchers expect rapid growth in
customers using online banking products and services. The challenge for national banks is to
make sure the savings from Internet banking technology more than offset the costs and risks
associated with conducting business in cyberspace. Marketing strategies will vary as national
banks seek to expand their markets and employ lower cost delivery channels. Examiners will
need to understand the strategies used and technologies employed on a bank-by-bank basis to
assess the risk. Evaluating a bank’
bank’s data on the use of their Web sites, may help examiners
determine the bank’
bank’s strategic objectives, how well the bank is meeting its Internet banking
product plan, and whether the business is expected to be profitable.

Some of the market factors that may drive a bank’

bank’s strategy include the following:

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

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

National banks have significant reasons to develop the technologies that will help them
deliver banking products and services by the most cost-effective channels. Many
bankers believe that shifting only a small portion of the estimated 19-billion payments

16
 mailed annually in the U.S. to electronic delivery channels could save banks and other
businesses substantial sums of money. However, national banks should use care in
making product decisions. Management should include in their decision making the
development and ongoing costs associated with a new product or service, including the
technology, marketing, maintenance, and customer support functions. This will help
management exercise due diligence, make more informed decisions, and measure the
success of their business venture.

 Geographical Reach — Internet banking allows expanded customer contact through

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

 Branding — Relationship building is a strategic priority for many national banks.

Internet banking technology and products can provide a means for national banks to
develop and maintain an ongoing relationship with their customers by offering easy
access to a broad array of products and services. By capitalizing on brand identification
and by providing a broad array of financial services, banks hope to build customer
loyalty, cross-sell, and enhance repeat business.

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

17
 base and find the right mix of delivery channels to deliver products and services
profitably to their various market segments.

ICICI Bank was the first bank to initiate the internet banking revolution in India as early as 1997
under the brand name ‘infinity’.

Internet banking has gained wide acceptance internationally and seems to be fast catching up
in India with more and more banks entering the fray. 
fray. 

As per IDC estimates, the total number of registered users for Internet banking in India is over
two million. But this figure needs to be adjusted for dormant users and multiple accounts (a
user having accounts with more than one bank). India has a little less than a million active
Internet banking users. And though this is just 0.096 percent of the total population, it
represents 15 percent of the India’s Internet user population. Thus, indicating that the concept
of Internet banking is surely catching on.

Impressive as these figures might be, the truth is that India lags behind other countries in
Internet banking. In the US, the number of commercial banks with transactional websites is
1,275 or 12 percent of the total number of banks. Of these, seven could be called ‘virtual
banks.’ Ten traditional banks have established Internet branches or divisions that operate
under a unique brand name. At present, in the US approximately 78 percent of all commercial
banks with assets more than $5 billion, 43 percent of banks with $500 million to $5 billion in
assets, and 10 percent of banks under $500 million in assets have transactional 
transactional websites.

From the Asian market experience, it is clear that Internet banking is here to stay and will be a
major channel to acquire and service customers. Markets like Korea and Singapore have nearly
10 percent of their population banking over the Internet. Though, these markets are way
ahead of India both in terms of Internet penetration and online banking penetration, India is a
big potential market and is fast catching up with its Asian counterparts.

18
3.2 The Indian Saga:

In contrast, Indian banks have an insignificant Internet banking record. ICICI Bank kicked off
online banking way back in 1996 and a host of other banks soon followed suit. But even for the
Internet as a whole, 1996 to 1998 marked the adoption phase, while usage increased only in
1999—due to lower ISP online charges, increased PC penetration and a tech-friendly
atmosphere.

After ICICI, Citibank, IndusInd Bank and HDFC Bank and Timesbank (now part of HDFC Bank),
were the early ones to bite the technology bullet in 1999.  Initially the Net banking facility was
provided in order to meet the information requirements of the customers and gradually it
ventured into fund transfers and third party transfers.

Though adoption of Internet banking by Indian banks and their customers would not set the
Arabian Sea on fire, no one can deny the obvious benefits that this service offers. Costs of
banking service through the Internet amount to a fraction of the costs through conventional
methods. Industry estimates assume teller cost at Re 1 per transaction, ATM transaction costs
at Re 0.45, phone banking at Re 0.35, debit cards at Re 0.20 and Internet banking at Re 0.10
per transaction.

 The prohibitive costs of real estate would always make Internet banking a much more viable
option in the long run than physical banks. In today’s environment besides their physical
branches, banks need to grow non-branch delivery networks as a part of their growth strategy.
ATMs are currently the hot favorite for most banks, but Internet banking definitely has the
potential to leave the rest behind. Therefore, on the whole, Internet banking increases
operational efficiencies and reduces costs, besides giving a platform for offering value added
services to the customer, thereby fulfilling all the essential prerequisites for a flourishing
banking industry.

19
3.3 The PSU lethargy:
Like in all forms of technology innovations, PSU banks have remained laggards in the race for
adopting Internet banking practices. There are very few nationalized banks like State Bank of
India, Punjab National Bank, Bank of Baroda, Allahabad Bank, and Union Bank of India,
Syndicate Bank and Bank of India that offer Internet banking services. SBI’s Internet banking
initiative, launched in July 2001, is in fact doing quite well and has over 18,000 registered
customers across 150 branches. The enthusiastic response has encouraged the SBI
management to extend the service to an additional 500 branches. But despite positive news
like this, PSU banks still have a lot of catching up to do on the Internet banking services front.

Some argue that the primary reason preventing PSUs from increasing their online banking
services reach has been an absence of a legal framework to back up, and regulate internet
banking operations in the country. Though the Information Technology Act 2000 attempted to
address a number of e-commerce regulatory issues, there still are not several grey areas which
have been spelt out properly, nor have the courts suggested workable modes of
implementation. 
implementation. 

However, not many are willing to buy the argument that it’s the lack of regulations that is
preventing the PSU banks from taking the Internet plunge. More than a lack of regulatory
framework, it is lack of zeal and a mindset attuned towards resisting any new technology that is
holding back the nationalized banks. 
banks. 

The average customer profile of PSU banks is also comfortable with the traditional banking
system and is not too keen on adopting an online model. Typically, most PSU banks have the
majority of their customer base in the smaller cities or towns and even in remote villages. Even
in bigger cities, a large proportion of their customers are either senior citizens or at least 50+
who have a natural aversion towards adopting new technology. This not the case with private
or MNC banks, where the clientele is mostly urban-based falling in the 20-40 age group and
who have a higher exposure to technology.

20
Even the IDC survey seems to confirm this premise. Among the elite Internet banking users,
that is, those customers who belong to Socio-Economic Class A1 (SEC A1) in the top five cities,
it has been found that people access their account through the Internet once every week.
Similarly users visit their ATM centre on an average of two times per week. The workplace
happens to be the most favored place to access Internet for banking purposes. The home
comes a close second while cybercafés take the third place. ATM in the close vicinity to the
office is the most preferred place among users for banking. The users (24 percent) who access
the ATM near their office mostly go during the first half of the day, between 9 AM to 12 PM,
but most preferred time by all users (41 percent) is between 6-9 PM.

3.4 Bouquet strategy:

This, probably, explains why more and more banks are looking at Internet banking as another
attractive addition to their bouquet of delivery channels. At least in urban areas, ATMs are
already fast becoming the most popular mode of banking, while phone banking and mobile
banking are also on the upswing as the user base grows. Internet banking now seems to be the
perfect model to complement the whole system.

What is ultimately emerging is that though there is certainly a high level of importance
attached to Internet banking, it is at present not necessarily a priority for all banks. As far as
banks are concerned, migrating customers to any self-directed channel is the main goal.
However, the future of banking will be one in which customers can address most of their needs
through self-directed means and the key differentiator will be how effective a bank is in getting
its customers online and deriving measurable value from this presence. One can sum up the
whole Internet banking scenario with the adage,

“For while winners may not see massive gains, the losers will fade from view as their ability to
compete is eroded with every mouse click.”

21
3.5 Banks’ key pain points and opportunities in internet banking:

Internet banking can be a driving part of

an integrated channel mix

Develop products and services

customized to the internet channel

Enhancing internet banking to become a

sales channel

Internet banking processes not realized

as STP

Consumer confidence in security starts

to reduce

Internet banking solution not stable/

scalable/ flexible enough

Internet banking user experience &

functionality not comprehensive

4. MOBILE BANKING:

Mobile banking is a way for the customer to perform banking actions on his or her cell phone
or other mobile device. It is a quite popular method of banking that fits in well with a busy,
technologically oriented lifestyle. It might also be referred to as M-banking
M-banking or SMS banking.
banking.

The amount of banking you are able to do on your cell phone varies depending on the banking
institution you use. Some banks offer only the option of text alerts,
alerts, which are messages sent to
your cell phone that alert you to activity on your account such as deposits, withdrawals, and
ATM or credit card use. This is the most basic type of mobile banking.
banking.

22
A more involved type of mobile banking allows the user to log into his or her account from a
cell phone, and then use the phone to make payments, check balances, transfer money
between accounts, notify the bank of a lost or stolen credit card, stop payment on a check,
receive a new PIN, or view a monthly statement, among other transactions. This type of
banking is meant to be more convenient for the consumer than having to physically go into a
bank, log on from their home computer, or make a phone call. While all of this is true, some
are concerned about the security of mobile banking.

Most experts advise against performing any large transactions over mobile banking, which is
good advice. However, it is equally important to use an alphanumeric password and to keep
your PIN safe. Change your password often, and do not use your pets' names, your child's
name, or any birthdays. This advice applies to all passwords, not just those used for mobile
banking. Though you are logging on to a secure server at the bank through your cell phone, you
need to do your part to protect your information. For this reason, many banks are now sending
one-time use passwords for an extra step in security.

A one-time use password might be sent to a cell phone or other device when you wish to log
into your account. You will then usually need to enter both the password you have already set,
along with the one-time use password, within a certain period of time. The one-time use
password expires, naturally, after it is used once or after a time limit has passed. Using two
passwords increases the security of the account, an important concern with mobile banking.

5. ATMs
Automated Teller Machine is a computerized machine that provides the customers of banks
the facility of accessing their accounts for drawing cash and to carry out other financial
transactions without the need of actually visiting a bank branch.

ATM cards/debit cards, credit cards and prepaid cards (that permit cash withdrawal) can be
used at ATMs for various transactions.

In addition to cash dispensing, ATMs have following services/facilities:

23
  Balance Enquiry

 Cash Deposit

 Funds Transfer

 Prepaid Mobile Recharge

 Mini/Short Statement

 PIN Change etc.

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

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

TYPES OF CREDIT CARDS

 Charge card 
card 

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

 Affinity card 
card 

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

  Standard card 
card 

24
 o It is a normal credit card which carries limit on transactions, according to the
credit worthiness of the card holder.

 Classis card.

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

 Gold card 
card 

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

 Platinum card

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

 Titanium card 
card 

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

 Secured card 
card 

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

 Smart card 
card 

o Smart cards, sometimes called chip[ cards, contains a computer chip

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

25
 cards with a present credit limit, or used as ID cards with stored – in
passwords.

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

Debit Card Types

There are two types of debit card categories. These are the virtual debit cards and the
physical debit cards. A wide range of debit card products are offered under these categories.
These cards are provided with a number of features.

Virtual Debit Cards

These cards have been designed as a measure to check the fraudulent activities that are
done through the Internet. There are a number of virtual credit cards offered by the
companies. Some of these cards are as follows:

 Gift Cards
 Payroll Cards
 Merchant Cards
 Incentive Cards
 Student Cards

26
Services Offered by Different Types of Virtual Debit Cards

 Payments Through Internet

 SMS Transfers
 Offline Payments
 Money Transfer
 Depository Services

Physical Debit Cards

These cards are similar to other plastic cards but the main difference is that the cardholders
should put the money in the card account before using the card. Different types of Physical
Debit Cards are provided by the card companies. Some of these are the following:

Re-Loadable Debit Cards: There are a number of cards that are provided as Re-Loadable Debit
Cards. These are Payment Cards, Merchant Cards, Student Cards, Payroll Cards, and
Government Payment Cards and so on

Disposable Debit Cards: Some of these cards are Incentive Cards, Gift Cards and so on.

Services Offered by Physical Debit Cards

 ATM Services

 Money Transfer Services

 Online/Offline Payments

 Depository Services

 POS Terminals

27
 8. Punjab National Bank:

8.1 Company Profile:

Punjab National Bank is one of the oldest banks in India. It was registered under the Indian
Companies Act in 1894. This bank is government owned and is the second largest commercial
bank owned by the government of India. With over 56 million satisfied customers and 5002
offices, PNB has continued to retain its leadership position amongst the nationalized banks. The
bank enjoys strong fundamentals, large franchise value and good brand image. Besides being
ranked as one of India's top service brands, PNB has remained fully committed to its guiding
principles of sound and prudent banking. Apart from offering banking products, the bank has
also entered the credit card & debit card business; bullion business; life and non-life insurance
business; Gold coins & asset management business, etc.

Since its humble beginning in 1895 with the distinction of being the first Indian bank to have
been started with Indian capital, PNB has achieved significant growth in business which at the
end of March 2010 amounted to Rs 435931 crore. Today, with assets of more than Rs 2, 96,633
crore, PNB is ranked as the 3rd largest bank in the country (after SBI and ICICI Bank) and has
the 2nd largest network of branches (5002 offices including 5 overseas branches)

8.2VISION

28
"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"

8.3 MISSION

"Banking for the unbanked"

8.4 Overview of the performance as on Mar’10:

40.85% share of CASA deposits Capital adequacy ratio – 14.16%

Gross NPA ratio – 1.71% Net NPA ratio – 0.53%
NIM – 3.57% Return on Assets – 1.44%
Earning Per Share – Rs. 123.98 Book Value Per Share – Rs. 514.77

Punjab National Bank continues to maintain its frontline position in the Indian banking
industry. In particular, the bank has retained its NUMBER ONE position among the nationalized
banks in terms of number of branches, Deposit, Advances, total Business, Assets, Operating
and Net profit in the year 2009-10. The impressive operational and financial performance has
been brought about by Bank’s focus on customer based business with thrust on CASA deposits,
Retail, SME & Agri Advances and with more inclusive approach to banking; better asset liability
management; improved margin management, thrust on recovery and increased efficiency in
core operations of the Bank. The performance highlights of the bank in terms of business and
profit are shown below:

Operating Profit : Rs. 7326 Cr 28.80%

Net Profit : Rs. 3905 Cr 26.40%
Total Business : Rs. 435931 Cr 19.60%
Deposits : Rs. 249330 Cr 18.90%
Credits : Rs. 186601 Cr 20.60%
Total Assets : Rs. 296633 Cr 20.10%

29
8.5 Punjab National Bank’s robust technology platform:

PNB has always looked at technology as a key facilitator to provide better customer service and
ensured that its ‘IT strategy’ follows the ‘Business strategy’ so as to arrive at “Best Fit”. The
bank has made rapid strides in this direction.

 All branches of the Bank are under Core Banking Solution (CBS) since Dec’08, thus
covering 100% of its business and providing ‘Anytime Anywhere’ banking facility to all
customers including customers of more than 3000 rural & semi urban branches.
 The bank has also been offering Internet banking services to the customers of CBS
branches like booking of tickets, payment of bills of utilities, purchase of airline tickets
etc. Towards developing a cost effective alternative channels of delivery, the bank with
more than 350 ATMs has the largest ATM network amongst Nationalized Banks.
 CBS platform is upgraded with Oracle RAC (Real Application Cluster) to meet scalability
and availability. First Finacle CBS setup to have RAC.
 5116 service outlets (SOLs) at 2694 centers across the country facilitating around 56
million account holders with “Anytime and Anywhere Banking”.
 A world class security operations centre to monitor, manage the security setup of the
bank’s centralized technology activities, first of its kind for any bank in the country.
 First nationalized bank to implement the enterprise-wide data warehouse to integrate
data from multiple source systems and provide MIS and data feed to anti money
laundering and operational risk solution.
 Operational risk solution operationalized to monitor compliance with BASEL II
requirements.
 Effective and seamless integration with payment systems like RTGS, NEFT, ECS facility
enabled at all 49 centers.
 All 6 PNB sponsored RRBs 100% CBS compliant covering 1416 SOLs.

30
8.6 Punjab National Bank increasing its global footprints:

Bank is in the process of:

 Upgrading its Representative Offices in China and Norway to branch.

 Setting up of representative office in Sydney, Australia.
 Acquiring 63.64% stake with management control in JSC Dana Bank in Kazakhstan.
 Setting up a wholly owned subsidiary in Canada, head quartered at Vancouver.

8.7 Bank has been a recipient of many awards and accolades during
the year:-

 Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance 2009
by Standing Conference of Public Enterprises

 As per Financial Express-Ernest & young (FE-EY) India’s Best Banks Survey, PNB is
identified as the best bank among the nationalized banks in terms of overall ranking.

 As per HT-Mars Survey on Customer Satisfaction, PNB stood NUMBER ONE in Delhi and
Chennai in terms of customer satisfaction.

 As per the Forbes Annual list of 2000 global giants, PNB tops the list of nationalized
banks with a global ranking of 695, substantial improvement over last year’s placement
at 946th position.

 The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of 2010.

 Skoch Challenge Award 2010 for “Livelihood Linkage” of the milk producers in
Bulandshahr District, Uttar Pradesh.

 IDC Financial Insights Innovation awards 2010 by IDC Financial Insights

31
8.8 Products and services:

Punjab National Bank offers a wide range of products and services in Personal banking,
corporate banking and home loans segment.

Savings Fund Account Total Freedom Salary Account, PNB

Prudent Sweep, PNB Vidyarthi SF Account, PNB
Mitra SF

Account Current Account PNB Vaibhav, PNB Gaurav, PNB Smart

Roamer

Fixed Deposit Schemes Spectrum Fixed Deposit Scheme, Anupam

Account, Mahabachat Schemes, Multi Benefit
Deposit

Scheme Credit Schemes Flexible Housing Loan, Car Finanace,

Personal Loan, Credit Cards

Social Banking Mahila Udyam Nidhi Scheme, Krishi Card,

PNB Farmers Welfare Trust

Corporate Banking Gold Card scheme for exporters, EXIM

finance

Business Sector PNB Karigar credit card, PNB Kushal

Udhami, PNB Pragati Udhami, PNB Vikas Udhami

9. PEST Analysis:

32
 Political
Regulatory Bodies

Govt. policies

International legislation

Technological Economic
Competent technology Economic trends (Indian &
development Global)
IT Seasonality and weather issues
Global communication Interest and exchange rates
Innovation potential
Social
Lifestyle trends

Customer attitudes and opinions

Media views

Brand image

Advertising and publicity

33
 10. SWOT Analysis:
STRENGHTHS
Loyal customers
Brand image
Low opening balance required
Speedy transactions
Easy Availability of loans at low cost of
interest
100% CBS enabled branches
Less affected by the depreciation of other
currencies than the foreign banks
OPPORTUNITY
Further developments in internet banking
Training staff in using computer aided
softwares
Selling more of self branded products
than third party products
Proper implementation of CRM
WEAKNESS
Poor ATM services
Not so attractive ambience
Attendance of queries over the phone
Ineffective marketing of financial
products
Grievances of increasing rates for locker
services
Relationship managers not very visible
Frequent link failures bringing activities to
halt
THREAT
Private sector banks
Other public sector banks offering higher
rates of interest on deposits
Young generation does not have a very
positive image about the branch
(obsolete and not eye catching) so they
are reluctant to open their accounts.
34
11. TOWS Analysis:

12. Research Statement:

35
12.1 Research Problem:

With more and more banks coming up the competition level is soaring high. The research
attempts to understand how its existing customers rate the various parameters and where they
expect improvements. This research paper is directed towards re-branding suggestions for
various PNB e-products like internet banking, mobile banking, ATMs, Debit cards, Credit cards.

12.2 Project Objectives:

 To study the e-banking potential in India in the current scenario.

 To study brand image of various e-products at PNB in the minds of the customers.
 To measure the customer satisfaction through a questionnaire generating customer
responses.
 To analyze the correlation between the quantitative and the qualitative factors in
overall customer satisfaction.
 To recommend better practices as felt through observations and customer suggestions.
 To give PNB e-banking a completely new and fresh look.

12.3 Research design, methodology and research instrument:

12.3.1 Research Plan:

12.3.1.1Primary Investigation:

In which data on the situation surrounding the problem will be gathered in order to arrive at
the correct definition of the problem.

12.3.1.2 Exploratory Study:

Determine the approximate area where the problem lies

12.3.2 Research Design:

36
Research was initiated by examining the secondary data to gain insight into the problem. By
analyzing the secondary data, the study aim is to explore the short comings of the present
system and primary data will help to validate the analysis of secondary data besides on
unrevealing the areas which calls for improvement.

12.4 Analysis and Rebranding of PNB Internet Banking:

PNB – Prefect Net Banking

Enjoy the benefits of internet banking 24x7x365

PNB offers Internet Banking services for both to the Corporate and Individuals. It provides 24
hours, 365 days banking from the PC of the user. A user can operate anytime and from
anywhere its accounts. The following are some of the services available online:

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

In order to avail internet banking, the consumers have to agree to certain conditions to
use the internet banking facility continuously without any problems. The most important
condition of all is the software which has to be availed by the consumer for himself which is
given below:

37
The Bank requirements for software in order to let the consumers use internet banking differs
as per their technology usage. The foreign banks don’t find any problems as far as technology is
concerned whereas nationalized banks require particular software for the consumers to use
their internet banking services.

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

The current positioning of PNB internet banking defines it as a perfect banking solution for
internet users. It says that no matter what the time is, customers can use internet banking
facilities any time as per their convenience. This also indicates the PNB culture that customers
are a priority for all PNB employees. This goes in line with the PNB tag line, ’the name you can

38
bank upon.’ It suggests to the customers that Punjab National Bank is the one which Indians
have always trusted and with the advancement of technology PNB has improved itself for the
better. Safety and security of customers is equally important for PNB.

The brochure displays a human hand pressing the enter key of a laptop on which the words
PNB Safe Net Banking are highlighted. The screen of the laptop shows the PNB online website.
The brochure also says that the bank caters to two types of customers:

 Retail customers
 Corporate customers

The brochure also lists down various facilities that are made available to both types of
customers. There is also a mention of Help Desk.

As PNB has basically catered to a huge number of lower and middle class citizens of India, the
brochure is also printed in Hindi when we flip the advertisement to other side, in order to make
it convenient for the customers to understand the advertisement.

12.4.1 Findings:

The PNB advertising just touches upon the ‘Safe Net Banking’ positioning. In other parts of the
advertisement we nowhere see how PNB projects itself as safe and secured. We see that most
of the advertisement is revolving around the 24x7x365 online access and the variety of facilities
that it provides. We can say that advertisement is directed towards providing information to
the customers rather than persuading them to use internet banking services of PNB.

12.4.2 Suggested perception towards Internet Banking

Advertisements:

Internet banking is very much new to India when we compare it with other countries. Indian
culture will still need time to adjust to the changing technology. Though internet banking in
India is picking up fast pace and the day is not far when almost all banking transactions will be
possible virtually, yet PNB should be very careful to lay down its positioning in a market where

39
internet banking has already become a part of all the competitors’ banks. The facilities that
PNB advertises are now-a-days given by almost all the banks. Therefore it is very difficult to
differentiate oneself from the competitors when there is less scope for point of differentiation.

The advertisements that PNB creates should therefore be able to position it in such a way that
it makes an impact in the minds of customers and helps in creating brand loyalty. I suggest that
PNB should bank upon one or two attributes in order to leave an impact in minds of the
customers. Following are some of the suggested attributes on which further detailed research
is carried on:

 Safety and security

 User friendly
 Quickness of transactions
 Improved technology
 Better services
 All solutions in one

12.4.3 Developing Research Plan:

The data for this research project has been collected through self administration. Due to time
limitation and other constraints direct personal interview method is used. A structured
questionnaire was framed as it is less time consuming, generates specific and to the point
information, easier to tabulate and interpret. Moreover respondents prefer to give direct
answers. The questionnaire has been close ended but suggestions from the customers have
been framed as the solo open ended questions. Any special remarks which customers gave
regarding any of the aspects of the close ended questions has been noted and presented in
recommendations or reflected in company’s strengths (if the comment is positive).

40
12.4.4 Collection of data:

Secondary data:

It was collected from internal sources. The secondary data was collected on the basis of
organizational profile, official records, news papers, magazines, management books, preserved
information in company database and website of the company.

Primary data:

The customers who visited the bank were interviewed (those already having an account with
PNB). They were the main source of primary data. The method of collection of primary data
was direct personal interview through a structured questionnaire.

12.4.5Sampling plan:

Since it is not possible to study whole universe, it becomes necessary to take sample from the
universe to know about its characteristics.

Sampling Units: Customers of Punjab National Bank visiting the branches

Sample Technique: Random Sampling.

Research Instrument: Structured Questionnaire.

Contact Method: Personal Interview.

Sampling size: My sample size for this project was 30 respondents. Since it was not possible to
cover the whole universe in the available time period, it was necessary for me to take a sample
size of 30 respondents.

41
12.4.6 Data collection instrument developed:

The mode of collection of data will be based on survey method. Primary data collection will be
based on personal interview. The questionnaire has been prepared accordingly to generate the
amount of information which account to customer satisfaction in internet banking.

12.4.7 Research limitations:

 The research is confined to a sample of population only and does not necessarily shows
a pattern applicable to the entire population. The time period being about 56 days it
becomes impossible to cover a large number of population.
 In a rapidly changing industry, analysis on one day or in one segment can change very
quickly. The environmental changes are vital to be considered in order to assimilate the
findings and in such a short duration an accurate analysis was not possible.
 Some respondents were reluctant to even respond. Many respondents were very casual
in their answering of the questionnaire and did not give due attention while answering.
 Many data, which would have refined the project, were unavailable.

42
12.4.8 Questionnaire

1. Do you use internet banking services of PNB?

Yes No

2. If not, what is/are the reasons for not availing this facility?

Not aware that such a service exists
Difficulty in operations
Transactions are not speedy
Security Issues are a concern
Other
Complex procedures for starting
Internet Banking of PNB is not user friendly
Information is not available easily

3. Would you use these facilities if you are given assistance that you require to use it?

Definitely Probably Uncertain

Probably not Definitely not

4. If you require assistance we would appreciate if you provide us with your contact details.
(Optional)

43
Questionnaire for people using PNB internet banking

1. Please Mark √ for your choices.

I am aware. I have used at least once. I use frequently.

Account Viewing
e-Pay for Bills
e-Remit/Fund Transfer
e-Trading
e-Payment of Direct Taxes
e-Payment of Central Excise
and Service Taxes
e-Ticket for Air or Rail Travel

2. How much are you satisfied with Internet Banking of PNB?

Very Much Satisfied Satisfied neither Satisfied nor Dissatisfied

Dissatisfied Very Much Dissatisfied

3. How frequently do you encounter problem in PNB-Internet Banking?

Very frequently Frequently Not often

Rarely Very rarely

4. What problems do you generally encounter while using the Internet Banking of PNB?

5. Please Mark √ for your choices.

Strongly Agree Neutral Disagree Strongly

Agree Disagree
Internet Banking section of PNB

44
website is informative.
Internet Banking section of PNB
website is cluttered with content
Requests and complaints are timely
addressed.
PNB Staff associated with Internet
Banking is helpful.
Internet Banking of PNB is secured.

Internet Banking of PNB caters to

all my banking needs.

6. What changes do you suggest for website of PNB internet banking in terms of its appearance?

7. Helpline Assistance provided with Internet Banking:

Very Satisfied Neutral Dissatisfied Very

Satisfied Dissatisfied
Call handled properly and not
kept on hold
Courteous and Professional
manners shown on call.
Quickly Answered

8. Kindly put the tick on the word which you feel appropriate for Internet Banking Service of PNB:

Easy Complicated

Safe Risky

Quick/ Prompt Slow/ Delayed

45
 Excellent Poor

9. Have you used Internet Banking of any other bank?

Yes No

10. How do you describe PNB internet Banking compared to the other banks?

Very Good Good At Par Poor Very Poor

11. Do you have any suggestions for PNB which can help PNB improve the service level? Please do
mention your suggestions regarding the Internet Banking Products you would expect from Bank
which are not currently Provided.

12. Would you recommend Internet Banking of PNB to your friend, relative or an associate?

Definitely Probably Uncertain

Probably not definitely not

12.4.9 Analysis and interpretation through EXCEL:

1)

46
 PNB customers using internet banking services

12
YES
NO

18

Interpretation: Only 40% of the PNB customers actually use PNB internet banking
facilities. This shows us that PNB has not been able to attract its existing customers to
internet banking, let alone be new customers. This data was taken from an urban area,
in which PNB customers are more techsavy as compared to the rural areas where PNB
has maximum no. of customers but these are not that techsavy as yet.

47
2)

Reason for not using PNB internet banking facilities

2
1 1

2
Complex procedures for starting

Difficulty in operations

8 Internet banking of PNB not user

friendly

Transactions not speedy

Security issues are a concern

4 not need
Do

Interpretation: From the above chart it can be clearly understood that security issues is
an area of concern for PNB internet banking. Other area of concern is slowness of
transactions. Personal interaction with customers and the Customer Care Officers gave
us the actual problem area and the suggested solution to this issue.
Phishing scams in Internet Banking:
Fraudsters can get personal information from bank’s customers through emails and
phones. These are very cleverly camouflaged and appear to be originating from the
bank itself.
Information could also get siphoned off while the customer is logged on to the bank’s
website. This happens through pop-ups, which appear alongside bank’s webpage asking
unsuspecting users to disclose confidential information.

48
Other requests might draw the customers to be a part of the survey.
The convenience of internet banking can be compared to electricity. It has to be used
with care to prevent rude shocks.
Problems regarding speed of the transactions:
The customers are of the opinion that PNB internet banking is not the speedy. There
are server problems where internet banking facility doesn’t work effectively. This
problem occurs especially on Sundays. When the banks are also closed, so it becomes
very difficult for the customers to fulfill their needs as they had trusted on the PNB Net
Banking 24x7x365 days service and they get disappointed.

49
3)

1212
12

10 1010
10

8 8
8
Account viewing
E-pay for bills
E-remit/funds transfer
6
5 5 E-trading
E-payment of direct taxes
4 4 E-payment of central excise &
service tax
4
E-ticket for air & rail travel

2 2
2

0
I am aware I ave used atleast I use frequently
once

Interpretation: the above chart shows that almost all the PNB Net Banking users are
aware of the various facilities the PNB offers. E-trading and E-payment of taxes are the
ones that none of the PNB customers have tried.

50
4)

Satisfaction level of PNB Internet Banking users

3
1

Very much satisfied

Satisfied
4 Neither satisfied nor dissatisfied
Dissatisfied
Very much dissatisfied

2 2

Interpretation: We have got mixed views regarding PNB internet banking satisfaction of
the customers. Nothing can be interpreted out of this chart. The only conclusion we can
draw is that PNB has failed to satisfy maximum no. of its customers for internet
banking.
5)

Strongly agree Agree Neutral Disagree Strongly disagree

Website is 12
informative
Website is cluttered 8 1 3
with content
Complaints are 6 4 2

51
 timely addressed
Staff is helpful 9 3
Net Banking is 8 2 2
secured
Caters to all the 4 6 2
banking needs
6) Words appropriate for PNB Net Banking:

4
5

7
8

Easy Safe
Complicat
ed Risky

2
6 6

10

Quick/Pro Excellent
mpt Poor

Interpretation: In the minds of the customers, internet banking of PNB is easy and excellent,
but at the same time it is a bit risky.

52
7)

Description of PNB Net Banking Services

1 2
1

Very good
Good
At par
Poor
Very poor
3

Interpretation: PNB Net Banking has created an average image in the minds of the customers.
Customers do not see anything extra given to them by PNB Net Banking. The facilities given by
PNB are given by other banks also. In order to distinguish itself from the competitors PNB
should come up with strategies that will ensure a better and a distinctive brand image in the
minds of the customers.

53
12.4.10 Other Analytical Tools:

54
SE(C
3
x7
4
2
L.fW
fi
ti
q
p
FO
ff
w
H
d
YITM
g)m
kch
tvyib
o
n
B
N
alesP
ru
5
6
ft
12.4.10.1 SWOT Analysis:

55
12.4.10.2 Porter’s 5 forces model:

Intensity of rivalry among the industry is

high as State Bank of India and ICICI Bank
are its main competitors. The services
offered are undifferentiated. There are too
many players in the market and the
customer prefers internet banking wherever
he gets better facilities and improved
services.

Bargaining power of buyers is high because switching costs are low for the net users. People
use more than one internet bank account and thus avail the facilities of more than one bank.

Bargaining power of suppliers is moderate as the switching cost is not very high. Also there
are many players offering similar services, thus the services are generally undifferentiated. But
long associations with a particular bank generate customer loyalty and unwillingness to switch.
This aspect is more to do with the behavioral aspect of customer.

Threat of substitutes is moderate because we see more and more foreign banks having tie ups
with Indian companies and coming up with more and more techsavy solutions to traditional
banking. However the legal framework of India has prevented this threat to a large extent.

56
Risk of entry by potential competitors is low because the cost of entry is very high, experience
curve, there are too much legal compliances to be met, government legislations are high, brand
identity is strong and distribution channels (number of branches) require time and capital to be
developed.

12.4.10.3 Ansoff’s Product- Market Mix:

  Existing Products New Products

Existing
Market
s Market Penetration     Product Development 
Development    

New
Market
s     Market Development 
Development     Diversification

The proposed strategy is market penetration because:

 Products offered cannot be differentiated too much, so there is less scope for product
development.
 Highly competitive industry as the number of rivals is very high trying to snatch over the
competitor’s customers.
 The industry demands a long term relationship based on customer trust and
convenience so if the bank goes on increasing its customer base without serving to the
needs of existing customers adequately they might shift to competitors. It is important
to practice retention marketing here.

57
Market development is also a strategy that should be adopted but not at the cost of the
existing customers because new market segments emerge due to changes in consumer
lifestyles or demographics. It should try and appeal to market segments it is not yet satisfying-
young professionals.

12.4.11 Strategies for rebranding of PNB Net Banking:

 If PNB wants to increase its reach in India, it has to target the untapped market. PNB
should reach the Indian youth so as to increase its customer base. Today’s youth is
techsavy and can understand the PNB internet banking better. The youth today is very
skeptical about PSUs. They are of the opinion that private banks are more convenient
and more consumer friendly. In order to change this attitude of the youth and make
them adaptable to PSUs, PNB should initiate huge advertising campaigns which will be
targeted to the youth and which will spread the message of convenience.
 Suggested tag lines for PNB Net Banking:
 Your money…just a click away!!!
 Banking now just a click away!!!
 Security is our priority…convenience is your right,
Together we make your banking experience bright!!!
 In order to reach out to the youth social networking sites like Face book, Twitter, Orkut,
LinkedIn can be of great use.
 The best way to reach out to the target customers is to make PNB more user- friendly.
In order to do this the employees will have to be trained about the working of the
internet banking website so that they can help solve the customer queries better.
 One more strategy could be to go for retention marketing, especially for diamond
customers, rather than targeting customers low on net worth.
 The trend suggests that PNB has always been low on advertising. It hasn’t advertised
much for its traditional banking facilities as well. Let alone be the newly initiated
services like e-banking. A rebranding exercise will be successful only when PNB invests

58
 in heavy advertisement campaigns for its e-banking facilities. This facilities are at a very
nascent stage and in order to survive in the race of being the most techsavy bank, PNB
will have to take help of huge advertising in:
 Print media and television
 Internet
 Hoarding and banners
 Stalls in trade fairs
 Distribution of leaflets containing detailed information
 Employees in PSUs are always considered to be a little calm in their working as
compared to private banks. A good way to motivate them would be to give them
enough incentives so as to increase sales and give them recognition for the same.
 Security of net banking is one of the greatest concerns why PNB Net Banking is not very
popular. In order to build more trust in the minds of the customers, I would suggest
PNB Net Banking should be more secured and trust worthy. One important strategy
would be to leverage the privacy of mobile phones and associated it with internet
banking.
 Customers who transact via PNB Net Banking will receive a password on their mobile
phone through SMS facility. This password will have to be entered in the Net Banking
system within 2 minutes of receiving. If a customer fails to enter the password within
the time limit, the transaction will fail to be successful and the customer would be out
of the system because the fail of transaction would indicate that the customer is not
authentic.
 Thus, in order to transact via PNB Net Banking customer will have to go through a highly
sophisticated techsavy secured procedure of two-password system. One password will
be a permanent one which will serve as the customer identity and the other password
will change for every transaction which will ensure that PNB Net Banking is secured
from scams like phishing.
 This type of high tech security would make PNB Net Banking free from phishing which is
now a days the most concerned area in internet banking.

59
  The servers linked to internet banking should be maintained properly and should be
checked from time to time. Convenience of the customers should always be the
priority.
 PNB will have to develop a strong brand image especially in the minds of young
professionals who prefer private banks by stressing on the key features like
transparency and reliability.

12.5 Analysis and Rebranding of PNB Mobile Banking:

Mobile banking in PNB is a product which was recently introduced on 12 th Feb, 2010. Being a
newly launched product it has covered a lot of points which are very beneficial to the
corporates or individuals of service class.

PNB Mobile Banking would enable PNB customers in accessing banking services
anytime/anywhere on-the-move through mobile phones. It is compatible with popular mobile
devices across most GSM & CDMA operators with easy to operate features.

The Mobile Banking Services are being offered in line with the guidelines of the Reserve Bank
of India. PNB Mobile Banking offers services like checking account balances, transfer of funds,
stop-payment of cheques, request for a cheque book and many more add-ons features.

Comparing the mobile banking services of PNB with other banks. It has all the basic amenities
of mobile banking but since it is at its infant stage, it requires a lot of improvements.

When the services are being compared to the banks, we have compared it on the basis of three
parameters

1. Services provided for bank accounts

2. Services provided for credit cards

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 3. Other services

 On comparing the banks we get to know that PNB has all sorts of individual/ corporate
facility of keeping a track of the account, balance enquiry, checque book etc. Some of
the banks do not have these services, which is giving an edge to the bank. It shows that
the bank is very particular about its conusmers getting the major accounting facilities. It
also shows the professional attitude of the bank which is very particular about its
consumers which majorly belong to the middle income group section.
 The major features that a conusmer would like to knvow when he swaps his credit card
is how much he has used and what he has paid to cover his dues and when he has paid
the dues. Here PNB lacks in this segment, being an infant it has not yet covered the
credit card and other sections. Whereas the other banks like the private sector banks
HDFC, ICICI and the foreign banks like Standard chartered bank and Citibank have all
these facilities to cater its target audience.
 Coming on to the other services, PNB lacks in this section completely. The reason being
the same, since it is newly launched, it would take some time to come at par with the
other banks. All these facilities are more for youngsters or the new employees who like
to do things faster which helps them to save both time and energy and also it gives
them a lot of facilities. This section too is being well established by other banks making
more space in their pockets for the new consumers.

12.5.1 Strategies for Rebranding of PNB Mobile Banking:

 PNB mobile banking being at its initial stages of development has to be backed up with
good advertising strategy in order to attract more and more customers.
 Techsavy, convenient and secured should be the attributes PNB should bank upon so as
to increase its reach.
 Rural marketing can be a good strategy as mobile banking can be quite popular in rural
markets with the rare availability of internet facilities and less no. of bank branches in
the most remote areas.
 Suggested taglines for PNB Mobile Banking:

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  For urban areas: “a very ‘mobile’ future of banking”
 For rural areas: “aapki suvidha humari zimmedari”
 For rural areas: “aapka bank…ab aapke paas…kabhi bhi, kahi bhi”
 The T.V. advertisements should be aired on national channels, especially doordarshan.
 As PNB already has a strong hold in north India, it should leverage this opportunity to
do test marketing of its mobile banking with a strong brand identity. This will
strengthen its hold in mobile banking era.

12.6 Analysis and Rebranding of PNB ATMs:

Punjab National Bank ATMs are one of the ATMs which are used by a large number of people
because the ATMs are located in all the major cities of India. The Punjab National Bank ATMs
are located in Delhi, Kolkata, Chennai, Mumbai, Bangalore, Hyderabad, Pune, Gurgaon, Uttar
Pradesh as well as Ghaziabad. The Punjab National Bank ATMs are one of the well equipped
ATMs thereby it has become extremely easier for the people to withdraw cash. It is also easier
to operate the Punjab National Bank ATMs as well.

The Punjab National Bank ATMs are known for the large number of facilities that it offers to its
customers. The Punjab National Bank ATMs are opened all the year round on a 24X7 basis. The
ATMs are not closed even on the holidays. Thus you can access your account as and when you
require it. Cash withdrawals have been thus made extremely easier because of this. The Punjab
National Bank ATMs are located at all the important parts of the cities such as near the
hospital, market places, major offices and others. Thus, you will not have to carry hard cash
with you whenever you go out. Thus it has extremely safe as well. Both the credit cards as well
as the debit cards offered by the Punjab national bank can be used in any of the Punjab
National Bank ATMs. They can be used in other ATMs as well. The banks have made up such tie
ups with other banks in order to provide the best facilities to the customers.

The Punjab National Bank ATMs you can also deposit the cheques. The Punjab National Bank
ATMs are one of the best in terms of security. So your cheques will be properly deposited.
When you withdraw cash from the Punjab National Bank ATMs, do not forget to collect the
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card, money as well as the mini statement they offer. This will help you keep a track of your
transactions. Once you visit the Punjab National Bank ATMs, you will be able to know more
about the limits of cash that you can withdraw from the ATM at one go. Thus withdrawing cash
has become extremely easier with the Punjab National Bank ATMs.

When we compare PNB ATMs with the others, we can see that PNB like many other banks,
gives all the facilities be it balance enquiry, cash withdrawals, PIN change, Mini statement, or
payment of utility bills. But it does not provide facilities like cheque deposits and ordering a
cheque book. These facilities are provided by Axis Bank, HDFC Bank, ICICI Bank, Standard
Chartered, Citi Bank. It is worth noting that SBI being the largest among all, be it for network
coverage or for worthiness, does not provide these facilities through its mobile banking.

We can thus analyze that Public Sector Banks are thus to improve a bit on their mobile banking
services if they want to compete at par with the Private Sector Banks.

12.6.1 Strategies for Rebranding PNB ATMs:

 PNB provides very basic services of ATMs as compared to other banks, especially ICICI
Bank and Standard Chartered Bank who provide variety of other services through ATMs
like Mutual Fund payment, Insurance Premium payment, donations, internet packs,
flexi top-ups, money transfer between linked accounts, mobile phones recharge, etc.
 The Bank of Baroda recent advertisements of ATMs are very eye-catchy and effective.
They have used animated characters to show that BOB has ATM services anywhere and
everywhere.
 Axis Bank has also recently advertised a lot for their ATM services. Their advertisements
give major emphasis to the symbol ‘A’ of Axis Bank to create a distinguished brand
identity.
 PNB should be very aggressive in its advertising campaigns for the ATM services. The
advertisements should convey the message of PNB tag line: the name you can bank

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 upon. This would ensure better footfall in PNB ATMs as the tag line is already very
popular all over India. The identity of PNB can be associated with its tag line which will
be a driving factor of PNB’s advertising campaign’s success.
 One more strategy to be suggested is setting up of a computer in each of the ATMs. The
computer should give the customers access to PNB website and PNB internet banking
facility. This type of strategy is called co-branding where in PNB will be able to
distinguish itself from the competitors by providing internet banking as well as ATM
facility all at one place. The advertisements of PNB should also convey this dual facility
message.
 PNB ATMs should have a distinguished tagline which can be used to create a different
brand identity.
 Suggested taglines for PNB ATMs:
 ‘ab aapke paise aapke haath mein…kabhi bhi, kahi bhi’
 ‘Hum hamesha saath nibhayenge’
 ‘aapka dost aapke saath…har pal,har jaga’
 Suggested taglines for PNB ATMs and Internet Banking (dual facility):
 ‘aapki suvidha ke liye hum hai na’
 ‘hamesha aapka saath nibhayenge’
 ‘sirf ATM hi nahi…pura bank ab aapki muthi mein’

12.7 Analysis and Rebranding of PNB Credit Cards:

Credit cards have been in India for well over two and half decades. Over the last five years
though, they have literally taken over the market and then came down due to increase in
number of debit card usage. The transactions through debit cards jumped by 42 per cent at Rs
26,418 Cr in the last fiscal from Rs 18,547 Cr in 2008-09, it slipped by 4 per cent for credit cards
to Rs 62,852 Cr from Rs 65,356 Cr. The total number of credit cards went down to 23.4 Cr in
2009-10 from 25.9 Cr in 2008-09.

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Downturn in the economy was the major reason for negative trend in credit cards. “During the
slowdown, banks became cautious in issuing new credit cards to check defaults. Also, last year
many lost their jobs which led to the decline in spending through credit cards

Total credit cards sold in the market:

Credit cards sold

7%
3%
3%
1%
29% ICICI
HDFC
SBI
14% Citibank
PNB
Axis bank
BOB
Standard Chartered

16%
26%

ICICI is the clear market leader in this segment with almost 29% of the credit cards sold.
Whereas PNB is merely 1% of the whole credit card segments which points out towards
necessities for improvement and coming up with more new cards and types so that it attracts
more consumers.

12.7.1 Strategies for Rebranding of PNB Credit Cards:

 PNB credit Cards should be targetted to the elite group of people who are flamboyant in
their spendings.

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  In todays times, PNB has a huge customer base of lower middle class and middle class
people. This segment may not prefer credit card usage.
 PNB will have to first build a customer base which is strong enough in upper middle
class and upper class segment in order to make a mark in the credit cards segments.
 The major players in the credit cards segment are foreign banks due to the perception
that they are more convinient, offer better rates and are acceptable throughout the
globe.
 Rebranding PNB Credit Card will be a challenge to this perception.
 This will require strong advertising backed up with a strong CRM system. The facilities
and the rates that PNB Credit Cards offer should also be upgraded in order to meet the
needs of the time.
 Suggested slogans for PNB Credit Cards:
 because your shopping experience should be care free…
 your convinience is our priority…

12.8 Analysis and Rebranding of PNB Debit Cards:

Debit cards are the faster growing card-based payment segment in India, given the credit-
averse nature of many consumers. Debit cards made their entry in India late 1998. Due to the
nature of the product (buy now, pay now), it has experienced exponential growth. Indians are
using more of debit cards than credit cards for their banking transactions, says the Reserve Bank of
India (RBI) data for the year ended 2009-10. While the transactions through debit cards jumped by 42
per cent at Rs 26,418 Cr in the last fiscal from Rs 18,547 Cr in 2008-09, it slipped by 4 per cent for credit
cards to Rs 62,852 Cr from Rs 65,356 Cr. In the same period, the number of debit cards in
circulation has also increased by 33 per cent as compared to a fall in credit card circulation by
10 per cent over the previous year. The total number of debit cards increased to 17 Cr in 2009-
10 from 12.8 Cr in 2008-09.
2008-09.

In April this year, debit card payments increased to Rs 2,508 crore from Rs 1,778 crore in the
corresponding month last year, according to the central bank's monthly bulletin. Transactions

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made through these cards in the country rose to Rs 5,473 crore from Rs 4,932 crore in the
corresponding month of the previous fiscal.

Total No of Debit Cards sold in the market:

Debit cards sold

3% 6%
16% ICICI
HDFC
10%
SBI
Citibank
6% 12% PNB
Axis bank
BOB
10% Standard Chartered

37%

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

12.8.1 Strategies for Rebranding PNB Debit Cards:

 PNB issues three types of debit cards:

 Classic Debit Card
 Gold Debit Card
 Free issue of PNB Gold debit cards to premium customers who have been associated
with PNB for more than 6 years can be an honor for the customers. These customers
are any ways very happy of being associated with PNB. If we give them such add-on

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 privileges, the brand loyalty of the bank will increase. The advertising that PNB will get
by way of word-of-mouth publicity will be additional advantage for PNB.
 The website of PNB when advertises about its Debit Cards should have a picture of the
actual debit cards it issues. This will help them in brand recall.
 Debit Cards are most often used in shopping malls and movie theatres or online
booking of tickets. In order to increase its presence in the advertisements, the best
places to advertise will be:
 Shopping malls and hypermarkets
 This should be targeted to women. A special type of debit cards should
be issued which can take care of the needs of a typical woman, especially
a house-wife.
 Internet
 This should be targeted to young professionals who are so busy in their
routine that they prefer online shopping rather than physically going in
the shops to buy products.
 Suggested slogans for PNB Debit Cards:
 Classic Card. They key to everything!!!
 Wherever you go…we accompany you!!!
 Har kisi ko Gold Card nahi milta…aap khaas hai
 For Debit Cards targeted at women
 Kuch kharidne ke liye paiso ki kya zarurat…
 Naya zamana…nayi soch…

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13. Conclusion and Recommendation:

 Even in this techsavy world, a good segment of consumers still prefer to bank with
PSUs. This result can be very well explained by the fact that nationalized banks are
acquainted with the Government and that ups and downs in business will not affect the
existence of the bank. Also the RBI too has good control over the working of these
banks and there for the customers feel a sense of security in investing in these banks.
However it is also seen that a good percentage of people also opt for private banks such
as ICICI, bearing in mind the amount of experience they posses in the field of banking.
These private banks, even though living with nationalized banks, which have the lion’s
share, appear to be huge market players and market turners.
 On a global scale technological innovations have been the main reasons for
International banks to become market drivers and leaders, but the same cannot be said
about India. Here improvement of technology has not yet played over the minds of the
people. It can be said that only the higher society of the Indian population would
consider technological innovations to be very important in terms of deciding the
importance of the bank. The other parts of India would hardly consider it to be reason
in selecting the bank.
 Keeping in mind the analysis in this paper we can note that consumers are hardly aware
of the PNB Net Banking facilities.
 Only rebranding a particular product will not help. PNB will have to rebrand its
corporate image in the minds of the customers.
 The picture of PNB as a bank for the poor should no more be the brand identity of the
bank.
 PNB should target the young professionals for all its branding requirements.

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 At the same time PNB should not forget its original grounds on which it has been able
to become the second largest nationalised bank in the country.
 The poor has always been PNBs strong customer base and it should leverage upon this
factor to increase its strength in this sector.
 Till recent times mobile banking and net banking were Greek and Latin to many Indians.
Such people would not keep technology in mind to select the bank. But on the other
hand the people who understand the importance of technology recognized the various
services that are provided and also mentioned that technology today in India has made
banking easier. However a huge section of the people knows the importance of an ATM
or Credit cards, but the service provision for these products was not found to be up to
the mark.
 PNB should improve its service proposition to the core so that not even a single
customer will have any complaints from the bank.
 To sum up what can be said about PNB is it is still on a growth stage as it is introducing
new credit and debit cards (platinum cards) and infant stage for mobile banking
services. In mobile banking it has a long way to go, whereas for internet banking, it is
developed but needs modification in its services being offered.
 Suggested taglines for PNB E-Banking Umbrella:
 Your convenience is our priority
 We all change for the ones we love
 We are BACK and with a BANG!!!

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 14. Bibliography:
www.google.co.in

www.rbi.org

www.pnbindia.com

www.theeconomictimes.com

www.banknetindia.com

www.rupeetimes.com

www.crminfoline.com

Other references include:

 Company pamphlets
 Interaction with company officials
 Branch visit at PNB Thane
 Interactions with customers
 Dummy customer visit at branches of SBI and ICICI Bank

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