Summer Internships 2011 MBA 2010-12

PROJECT REPORT

ON

Role of IT in the Banking Industry

Undertaken at

PUNJAB NATIONAL BANK Circle Office Rajendra Place (Delhi)

Prepared By: KANIKA DUA 160

Company Guide Mr. A.K Saxena (Chief Manager)

Faculty Guide Mrs. Anju Batra

CONTENTS
SL.No. Chapter-1 Chapter-2 Chapter-3 Chapter-4 Chapter-5 Chapter-6 Chapter-7 Topics Introduction of the study Introduction of the organization Discussion on training Findings Observation, Suggestion & Recommendation Summary Bibliography & Questionnaire

CHAPTER-1
Introduction of the study
Overview of the study Role of I .T. in banking Objective of the study Scope of the study Methodology of the study Limitations of the study

INTRODUCTION OF THE STUDY

BANKING Banking, the business of providing financial services to consumers and businesses. The basic services a bank provides are checking accounts, savings accounts and time deposits that can be used to save money for future use; loans that consumers and businesses can use to purchase goods and services; and basic cash management services such as check cashing and foreign currency exchange. TYPES Four types of banks specialize in offering these basic banking services: 1) Commercial banks, 2) Savings and loan associations, 3) Savings banks, and 4) Credit unions. A broader definition of a bank is any financial institution that receives, collects,transfers, pays, exchanges, lends, invests, or safeguards money for itscustomers. This broader definition includes many other financial institutions that are not usually thought of as banks. These institutions include finance Companies, investment companies, investment banks, insurance companies, pension funds, security brokers and dealers, mortgage companies, and real estate investment trusts. The following are the Scheduled Banks in India (Public Sector): State Bank of India State Bank of Bikaner and Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Saurashtra State Bank of Travancore Andhra Bank Allahabad Bank

Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Dena Bank Indian Overseas Bank Indian Bank Oriental Bank of Commerce Punjab National Bank Punjab and Sind Bank Syndicate Bank Union Bank of India United Bank of India UCO Bank Vijaya Bank

The following are the Scheduled Banks in India (Private Sector): The ING Vysya Bank Ltd Axis Bank Ltd Indusind Bank Ltd ICICI Bank Ltd South Indian Bank HDFC Bank Ltd Centurion Bank Ltd Bank of Punjab Ltd IDBI Bank Ltd following are the Scheduled Foreign Banks in India: American Express Bank Ltd. ANZ Grid lays Bank Plc. Bank of America NT & SA Bank of Tokyo Ltd. Banquc Nationale de Paris Barclays Bank Plc Citi Bank N.C. Deutsche Bank A.G. Hongkong and Shanghai Banking Corporation

 Standard Chartered Bank. The Chase Manhattan Bank Ltd. Dresdner Bank AG. PURPOSE Banking services serve two primary purposes. First, by supplying customers with the basic mediums-of-exchange (cash, checking accounts, and credit cards),Second, by accepting money deposits from savers and then lending the money to borrowers, banks encourage the flow of money to productive use and investments. This in turn allows the economy to grow. Enabling the flow of money from savers to investors is called financial intermediation, and it is extremely important to a free market economy. TECHNOLOGY There is an imperative need for not mere technology up gradation but also its integration with the general way of functioning of banks to give them an edge in respect of services provided to their constituents, better housekeeping, optimizing the use of funds and building up of MIS for decision making, better management of assets & liabilities and the risks assumed which in turn have a direct impact on the balance sheets of banks as a whole. Technology has demonstrated potential to change methods of marketing, advertising, designing, pricing and distributing financial products and services and cost savings in the form of an electronic, selfservice product delivery channel. These challenges call for a new, more dynamic, aggressive and challenging work culture to meet the demands of customer relationships, product differentiation, brand values, reputation, corporate governance and regulatory prescriptions. Technology holds the key to the future success of Indian Banks. Internet, wireless technology and global straight-through processing have created a paradigm shift in the banking industry. The explosive growth of both the Internet and mobile and wireless technology is revolutionizing the way the financial industry conducts business. The overall wireless technology market is expected to grow profoundly in the coming years.

ROLE OF INFORMATION TECHNOLOGY INDUSTRY.

IN BANKING

The role of information technology (IT) in the banking industry. Based on the technological innovations have enabled the industry to open up efficient delivery channels. It is said that IT has helped the banking industry to deal with the challenges the new economy poses. The study also examines the views of bank employees on the implementation of IT in banks. According to the observation, private and foreign banks use more IT-related banking services than public sector banks. OVERVIEW OF THE STUDY If one were to say that the future of banking in India is bright, it would be a gross understatement. With the growing competition and convergence of services, the customers (you and I) stand only to benefit more to say the least. At the same time, emergence of a multitude of complex financial instruments is foreseen in the near future (the trend is visible in the current scenario too) which is bound to confuse the customer more than ever unless she spends hours(maybe days) to understand the same. Hence, I see a growing trend towards the importance of relationship managers. The success (or failure) of any bank would depend not only on tapping the untapped customer base (from other departments of the same bank, customers of related similar institutions or those of the competitors) but also on the effectiveness in retaining the existing base. India has witness to a sea change in the way banking is done in the past more than two decades. Since 1991, the Reserve Bank of India(RBI) took steps to reform the Indian banking system at a measured pace so that growth could be achieved without exposure to any macro environment and systemic risks. Some of these initiatives were deregulation of interest rates, dilution of the government stake in public sector banks (PSBs), guidelines being issued for risk management, asset classification, and provisioning. Technology has made tremendous impact in banking. Anywhere banking and Anytime banking have become a reality. The financial sector now operates in a more competitive environment than before and intermediates relatively large

volume of international financial flows. In the wake of greater financial deregulation and global financial integration, the biggest challenge before the regulators is of avoiding instability in the financial system. NEED FOR THE STUDY The deeper the company understands of consumers needs and satisfaction, the earlier the product or service is introduced ahead of competition, the greater the expected contribution margin. Hence the study is very important. This study will help companies to customize the service and product, according to the consumers need. This study will also help the companies to understand the experience and expectations of the existing customers. OBJECTIVES OF THE STUDY The vital objectives of this project are To enhance and sharpen skills. To get awareness about changing business environment in banking. To understand the retail banking process. To find out the differences among perceived service and expected service. To produce an executive service report to upgrade service characteristics. To understand consumers preferences. To access the degree of satisfaction of the consumers SCOPE OF THE STUDY This study is limited to the consumers within the city. The study will be able to reveal the preferences, needs, satisfaction of the customers regarding the banking services w.r.t. the new technology, It also help banks to know whether the existing products or services they are offering are really satisfying the customers needs or not. 1. The Perception of Employees towards the Implementation of Information Technology in the Bank.

2. To assess the Customers' Satisfaction Level towards the Use of Information Technology related Services in the Bank. METHODOLOGY OF THE STUDY A descriptive study tries to discover answers to the questions who, what, when, where, and, sometimes, how. The researcher attempts to describe or define a subject, often by creating a profile of a group of problems, people, or events. Such studies may involve the collection of data and the creation of a distribution of the number of times the researcher observes a single event or characteristic (the research variable), or they may involve relating the interaction of two or more variables. Organizations that maintain databases of their employees, customers, and suppliers already have significant data to conduct descriptive studies using internal information. Yet many firms that have such data files do not mine them regularly for the decision-making insight they might provide. This descriptive study is popular in business research because of its versatility across disciplines. In for-profit, not-for-profit and government organizations, descriptive investigations have a broad appeal to the administrator and policy analyst for planning, monitoring, and evaluating. In this context, how questions addressi ssues such as quantity, cost, efficiency, effectiveness, and adequacy. Descriptive studies may or may not have the potential for drawing powerful inferences. A descriptive study, however, does not explain why an event has occurred or why the variables interact the way they do. SAMPLE METHOD Convenience sampling method is used for the survey of this project. It is a non-probability sample. This is the least reliable designbut normally the cheapest and easiest to conduct .In this methodResearcher have the freedom to choose whomever they find, thus thename convenience. Example includes informal pools of friends andneighbours or people responding to a newspapers invitation forreaders to state their position on some public issue. SAMPLE SIZE

Sample size denotes the number of elements selected for the study. For the present study, 100 respondents were selected at random. All the 100 respondents were the customers of P.N.B. branch. SAMPLING METHOD A sample is a representative part of the population. In sampling technique, information is collected only from a representative part o fthe universe and the conclusions are drawn on that basis for the entireuniverse. A convenience sampling technique was used to collect data fromthe respondents. METHOD OF DATA COLLECTION To know the response, the researcher used questionnaire method. It has been designed as a primary research instrument. Questionnaires were distributed to respondents and they were askedto answer the questions given in the questionnaire. The questionnaires were used as an instrumentation technique, because it is an important method of data collection. The success ofthe questionnaire method in collecting the information depends largelyon proper drafting. So in the present study questions were arranged and interconnected logically. The structured questionnaire will reduce both interviewers and interpreters bias. Further, coding and analysis was done for each questions response to reach into findings, suggestions and finally to the conclusion about the topic. TYPES OF DATA Every decision poses unique needs for information, and relevant strategies can be developed based on the information gathered through research. Research is the systematic objective and exhaustive search for and study of facts relevant to the problem Research design means the framework of study that leads to the collection and analysis of data. It is a conceptual structure with in which research is conducted. It facilitates smooth sailing of various research operations to make the research as effective as possible.

PRIMARY DATA Primary data are those collected by the investigator himself for thefirst time and thus they are original in character, they are collected fora particular purpose. A well-structured questionnaire was personally administrated to theselected sample to collect the primary data. SECONDARY DATA Secondary data are those, which have already been collected by someother persons for their purpose and published. Secondary data areusually in the shape of finished products. Two types of secondary data were collected for the preparation of theproject work: Internal Datawas generated from companys brochures, manualsand annual reports External Data, on the other hand, was generated from magazines,research books, intranet and internet (websites).

LIMITATIONS OF THE STUDY Although the study was carried out with extreme enthusiasm and careful planning there are several limitations, which handicapped there search viz, 1. Time Constraints: The time stipulated for the project to be completed is less and thusthere are chances that some information might have been left out,however due care is taken to include all the relevant information needed. 2. Sample size: Due to time constraints the sample size was relatively small and would definitely have been more representative if I had collected information from more respondents. 3. Accuracy: It is difficult to know if all the respondents gave accurate information; some respondents tend to give misleading information. 4. It was difficult to find respondents as they were busy in their schedule, and collection of data was very difficult. Therefore, the study had to be carried out based on the availability of respondents.

CHAPTER-2
INTRODUCTION OF THE ORGANISATION
Overview of the organization History of the organization Impact of I.T. in Banking Product Profile of the organization Organizational Structure Market Profile of the organization

OVERVIEW OF THE ORGANISATION Punjab National Bank of India, the first Indian bank started only with Indian capital, was nationalized in July 1969 and currently the bank has become a front-line banking institution in India with 4525Offices including 432 Extension Counters. The corporate office of the bank is at New Delhi. Punjab National Bank of India has set up representative offices at Almaty (Kazakhstan), Shanghai (China) and in London and a fully fledged Branch in Kabul (Afghanistan).Punjab National Bank with 4497 offices and the largest nationalized bank are serving its 3.5 crore customers with the following wide variety of banking services: Corporate banking Personal banking Industrial finance Agricultural finance Financing of trade International banking

Punjab National Bank has been ranked 38th amongst top 500companies by The Economic Times. PNB has earned 9th position among top 50 trusted brands in India. Punjab National Bank India maintains relationship with more than 200leading international banks worldwide. PNB India has Rupee Drawing Arrangements with 15 exchange companies in UAE and 1 in Singapore.

HISTORY OF THE BANK Punjab National Bank (PNB) was registered on May 19, 1894 under the Indian Companies Act with its office in Anarkali Bazaar Lahore. The Bank is the second largest governmentowned commercial bank in India with about 4,500 branches across 764 cities. It serves over 37million customers. The bank has been ranked 248th biggest bank in the world by Bankers Almanac, London. The bank's total assets for financial year 2007 were about US$60 billion. PNB has a banking subsidiary in the UK, as well as branches in Hong Kong and Kabul, and representative offices in Almaty, Dubai, Oslo, and Shanghai. 1895: PNB commenced its operations in Lahore. PNB has the distinction of being the first Indian bank to have been started solely with Indian capital that has survived to the present. (The first entirely Indian bank, the Ouch Commercial Bank, was established in 1881 in Faizabad, but failed in 1958.) PNB's founders included several leaders of the Swadeshi movement such as Dyal Singh Majithia and Lala HarKishen Lal, LalaLalchand, Shri Kali Prosanna Roy, Shri E.C. Jessawala, ShriPrabhu Dayal, Bakshi Jaishi Ram, and Lala Dholan Dass. Lala Lajpat Rai was actively associated with the management of the Bank in its early years.

1904: PNB established branches in Karachi and Peshawar. 1940: PNB absorbed Bhagwan Dass Bank, a scheduled banklocated in Delhi circle. 1947: Partition of India and Pakistan at Independence. PNB lostits premises in Lahore, but continued to operate in Pakistan. 1951: PNB acquired the 39 branches of Bharat Bank (est. 1942);Bharat Bank became Bharat Nidhi Ltd. 1961: PNB acquired Universal Bank of India.

 1963: The Government of Burma nationalized PNB's branch inRangoon (Yangon). September 1965: After the Indo-Pak war the government ofPakistan seized all the offices in Pakistan of Indian banks,including PNB's head office, which may have moved to Karachi.PNB also had one or more branches in East Pakistan(Bangladesh). 1960s: PNB amalgamated Indo Commercial Bank (est. 1933) ina rescue. 1969: The Government of India (GOI) nationalized PNB and 13other major commercial banks, on July 19, 1969. 1976 or 1978: PNB opened a branch in London. 1986 The Reserve Bank of India required PNB to transfer itsLondon branch to State Bank of India after the branch wasinvolved in a fraud scandal. 1986: PNB acquired Hindustan Commercial Bank (est. 1943) in arescue. The acquisition added Hindustan's 142 branches to PNB'snetwork. 1993: PNB acquired New Bank of India, which the GOI hadnationalized in 1980. 1998: PNB set up a representative office in Almaty, Kazakhstan. 2003: PNB took over Nedungadi Bank, the oldest private sectorbank in Kerala. Rao Bahadur T.M. Appu Nedungadi, author ofKundalatha, one of the earliest novels in Malayalam, hadestablished the bank in 1899. It was incorporated in 1913, andin 1965 had acquired selected assets and deposits of theCoimbatore National Bank. At the time of the merger with PNB,Nedungadi Bank's shares had zero value, with the result that itsshareholders received no payment for their shares.PNB also opened a representative office in London. 2004: PNB established a branch in Kabul, Afghanistan.PNB also opened a representative office in Shanghai.PNB established an alliance with Everest Bank in Nepal

thatpermits migrants to transfer funds easily between India andEverest Bank's 12 branches in Nepal. 2005: PNB opened a representative office in Dubai. 2007: PNB established PNBIL - Punjab National Bank(International) - in the UK, with two offices, one in London, andone in South Hall. Since then it has opened a third branch inLeicester, and is planning a fourth in Birmingham. Gatin Guptabecame Chairmen of Punjab National Bank. 2008: PNB opened a branch in Hong Kong. 2009: PNB opened a representative office in Oslo, Norway. 2010 : 2011 :

ACHIEVEMENTS Punjab National Bank announced its Q1FY2010 results on 29July 2009, delivering 62% y-o-y growth in net profits toRs832 crore (Rs512cr), substantially ahead of expectations on account of large treasury gains, apart from healthy operating performance. While the banks deposit growth was reasonably robust at4.4% sequentially and 26.5% y-o-y, unlike the peers its growth in advances also remained strong at 38% y-o-y. In spite of being at the forefront of PLR cuts, the bank posted a healthy growth in Net Interest Income (NII) of 29% y-o-y. Other Income surged 113% y-o-y, driven by strong treasurygains of Rs355 crore during the quarter in line with industrytrends, even as Fee income was also robust at 45% y-o-y, onthe back of strong balance sheet growth. Operating expenses were higher than expected on account ofRs150 crore of provisions for imminent wage hikes.

 Gross and Net NPA ratios remained stable sequentially at1.8% and 0.2%, with the bank not adopting the guidelines oftreating floating provisions as part of tier 2 capital instead ofadjusting against NPAs on express permission from the RBI. VISION AND MISSION Vision To evolve and position the bank as a world class, progressive ,cost effective and customer friendly institution providing comprehensive financial and related services. Integrating frontiers of technology and serving various segments of society especially weaker section. Committed to excellence in serving the public and also excelling in corporate values Mission To provide excellent professional services and improve its position as a leader in financial and related services. Build and maintain a team of motivated workforce with high work ethos. Use latest technology aimed at customer satisfaction and act as an effective catalyst for socio economic development. VALUES AND ETHICS Bonding and Integrity Ethical conduct Periodic disclosure Confidentiality and fair dealing Compliance with rules and regulations

IMPACT OF I.T. IN BANKING INDUSTRY 1). Technology has opened up new markets, new products, new services and efficient delivery channels for the banking industry. Online electronics banking, mobile banking and internet banking are just a few examples. 2). Information Technology has also provided banking industry with the wherewithal to deal with the challenges the new economy poses. Information technology has been the cornerstone of recent financial sector reforms aimed at increasing the speed and reliability of financial operations and of initiatives to strengthen the banking sector. 3). The IT revolution has set the stage for unprecedented increase in financial activity across the globe. The progress of technology and the development of world- wide networks have significantly reduced the cost of global funds transfer. 4). It is information technology which enables banks in meeting such high expectations of the customers who are more demanding and are also more techno-savvy compared to their counterparts of the yester years. They demand instant, anytime and anywhere banking facilities. 5). IT has been providing solutions to banks to take care of their accounting and back office requirements. This has, however, now given way to large scale usage in services aimed at the customer of the banks. IT also facilitates the introduction of new delivery channels - in the form of Automated Teller Machines, Net Banking, Mobile Banking and the like. Further, IT deployment has assumed such high levels that it is no longer possible for banks to manage their IT implementations on a standalone basis with IT revolution, banks are increasingly interconnecting their computer systems not only across branches in a city but also to other geographic locations with high-speed network infrastructure, and setting up local area and wide area networks and connecting them to the Internet. As a result, information systems and networks are now exposed to a growing number. Technology Products

(1). Net Banking (2). Credit Card Online (3). Mobile Banking (4). NetSafe (5). Online Payment of Excise & Service Tax (6). Bill Payment (7). Shopping (8). Railway Ticket Booking through SMS (9). Smart Money Order (10). Funds Transfer (e- Cheques) (11). Internet Banking (12). Bank@Home (13). One View (14). InstaAlerts (15). e-Monies Electronic Fund Transfer (16). Phone Banking (17). Ticket Booking (18). Prepaid Mobile Recharge (19). Card to Card Funds Transfer (20). Anywhere Banking (21). Mobile Banking (22). Cash on Tap:

(i) Express Delivery (ii) Normal Delivery POS TERMINAL AND CASH DISPENSER

Many Benefits of Technology Increased operational productivity Superior customer service Multi-channel, real-time transaction processing Better cross-selling ability Improved management and accountability Efficient NPA and risk management Minimal transaction costs Improved financial analysis capabilities efficiency, profitability &

Focus aspects of Commercial Banking now are: BANKS BUSINESS Core MIS & Banking (CBS) Intranet Electronic Banking Any Branch Banking

LOANS & MISC. SERVICES

ATMs
POS Terminal s and Cash dispense Card r

RAISING DEPOSITS

Corporate Network
Risk Management

Manage ment Document Management

CRM

Resource Management

BANKS BUSINESS

I.T Payment and Settlement Systems

Dema terialisati on Of Secur ities

Real Electron Time Gross ic Deliver Dealing Settleme nt Platfor y Versus ms Payme nts

Payme nt Versus Payme nt

Continu ous Centra Linked l Secured Netting Counte Settleme nt r Systems party

CHANDIGARH JAMMU

INFINET Leased Line Network

LUCKNOW

JAIPUR

DELHI KANPUR CALCUTTA

BHOPAL AHMEDABAD

GUWAHATI
MUMBAI

PATNA
GOA NAGPUR BHUBANESHWAR PUNE BANGALORE HYDERABAD RBI KOCHI CHENNAI IDRBT HYDERABAD 2 Mbps CUG links 64 Kbps

THIRUVANANTHAPURAM

4 X 2 Mbps 2 X 2 Mbps 2 Mbps with ISDN Backup

PRODUCT PROFILE Presently, it is the second largest bank of the country rendering a wide variety ofbanking services: CENTRALISED BANKING SOLUTION (CBS) CBS, an inter-branch networking and data-sharing platform helps to operate account from any city in India having CBS networked branches. Changing status from Customer of the Branch to Customer of the Bank, presently, there are over 2,616 CBS networked brandies in 820 cites.

NRIS & TOURISTS Currency exchange services are being provided by our 68 Exchange Bureaus spread throughout the country.

ONLINE TAX PAYMENT PNB provides the facility of online payment of service tax, excise duty, DGFT, custom duty & all charges urlderMCA2l

CASH MANAGEMENT SERVICE (CMS) PNBs CMS facilitates management of receivables and payments in technology driven environment, ensuring

availability of funds at reduced cost, helping reconciliation at multi location accounts besides providing customized MIS.

MUTUAL FUNDS & INSURANCE The bank has tied-up with Principal Financial Group for providing Mutual Funds and Insurance services & also tied up for distribution & marketing of UTI Mutual Funds.

NRI SERVICES NRE, FCNR, RFC, NRO Deposit a/c investment Management &Housing Loan facilities for NRIs.

FOREIGN EXCHANGE PNB has 150 branches authorized for handling foreign exchange business and these branches have been provided with SWIFT connectivity to ensure faster realization of funds.

 e-MONEYINDIA Send money to the loved ones in India through PNBs e-Money India service. Draft delivery across 4,038 locations and Bank Credit to over 2,500 branches in India.

ONLINE RAILWAY RESERVATION/AIR TICKET BOOKING Say goodbye to long queues. PNB offers online booking &information through IRCTC payment gateway. Just click and travel comfortably.

DEPOSITORY SERVICE PNB Depository service provides the facility of having shares & securities in Demat form & executes transactions of sales & purchase hassle free electronically.

LOCKERS Now, customer can relax with assurance of having your locker atthe PNB branch nearest to their home.

 CUSTOMER CARE FACILITY All the banking queries and problems are just a call away! PNBpresents 24 hr. customer care facility. Call at toll free no. at 1800180 2222 from MTNL/BSNL or 0124-2340000 from other nos.

PNB GOLD COIN PNB gives opportunity to dazzle the well wishers, patrons,partners and acquaintances with the mystical charisma of PNBs999.9 fineness pure 24-carat gold coins and to convey the truevalue of treasured relationship. Enjoy guarantee of purity & weight of hallmarkedgold coins.

ELECTRONIC CLEARING SERVICE (ECS) & ELECTRONIC FUNDSTRANSFER (EFT) Avail ECS for quick movement of funds in a paperless mode & EFT to ensure anexpeditious transfer of funds by using electronic media.

WEALTH MANAGEMENT SERVICE PNB provides customized financial advisory services forindividuals that includes Mutual Funds, insurance, RetirementPlanning, Tax planning, & Debt Management to customers for wealthMaximization.

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

LOANS CAR LOAN/2 WHEELER LOAN Drive dream car/bike home. PNB gives loan for the purchase ofnew/old car, van or jeep, new bike at very attractive interest rateswith a convenient repayment period.

LOAN AGAINST JEWELLERY Loans against Gold & Jewellery for individuals/businessenterprises, both for business & personal needs.

TRADERS LOAN Maximize business turnover with PNB traders loan with minimumpaper work and attractive rate of interest, for whole sellers,dealers, distributors, individuals, firms, registered cooperative societies &companies. Loans are also available for purchase of shop /showroom.

 HOUSING LOAN Bring own dream home to life. Avail flexi housing loan and havethe advantage of substantial savings on the interest component.Insurance covers for home loan borrowers areavailable.

PERSONAL LOANS A scheme to meet all types of personal needs, forpermanent/confirmed employees/Defence Personnel andProfessionally Qualified Doctors.

CORPORATE LOANS Corporate can expand & diversify with user friendly CorporateLoans Products Working Capital, Term Loan, Bank Guarantee,Letter of Credit & others.

 EDUCATIONAL LOAN Avail Sarvottam Shiksha & Vidyalakshyapurti schemes forstudies In India & abroad and ensure a great career for child.

PNB GRAMIN CHIKITSAK Scheme for financing qualified medical practitioners for setting up clinics in ruralareas at concessional rate of interest.

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

LOANS TO WOMEN PNBs Mahila Sashaktikaran Abhiyaan & Mahila SamridhiYojana give special benefits to women customers that help inbuilding their confidence & self-esteem.

DEPOSITS PNB MET LIFE

Delighting depositors with life insurance by extending the facilityof insurance cover (death only) to all Saving Fund & CurrentAccount (Individuals) holders.

PNB VIDYARTHI ACCOUNT Empowering the young generation with accountfor students with overdraft facility.

zero

balance

TOTAL FREEDOM SALARY ACCOUNT Discover the freedom of flexibility with PNBs Total FreedomAccount. A zero balance account for employees having salaryaccount in the bank, with overdraft facility.

PNB TAX SAVER PNB offers term deposit scheme to avail tax benefit under Sec80(C)2 (xxi) of income Tax Act.

PNBMITRA PNB offers no frill saving account for financial inclusion.

How to Ensure Security??-A Framework

Respond

Assess

Protect Detect

ORGANISATIONAL STRUCTURE

(Branch Manager)

Mr. Sanjay Kumar (Asst. Manager)

Mr. Mithilesh Kr. Karn (Business Facilator)

Mr. S.K. Mishra (Head Cashier)

Mr. A.K. Srivastava (Clerk)

INDUSTRY PROFILE ORIGIN AND DEVELOPMENT OF INDUSTRY Banking in India Banking in India originated in the first decade of 18th century. The General Bankof India came into existence in 1786. This was followed by Bank of Hindustan.Both these banks are now defunct. The oldest bank in existence in India is theState Bank of India being established as "The Bank of Bengal" in Calcutta inJune 1806. A couple of decades later, foreign banks like Credit Lyonnais startedtheir Calcutta operations in the 1850s. At that point of time, Calcutta was themost active trading port, mainly due to the trade of the British Empire, and due towhich banking activity took roots there and prospered. The first fully Indianowned bank was the Allahabad Bank, which was established in 1865. By the 1900s, the market expanded with the establishment of banks such asPunjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai -both of which were founded under private ownership. The Reserve Bank of Indiaformally took on the responsibility of regulating the Indian banking sector from1935. After India's independence in 1947, the Reserve Bank was nationalizedand given broader powers.The banking in India was controlled and dominated by the presidency banks,namely, the Bank of Bombay, the Bank of Bengal, and the Bank of Madras -which later on merged to form the Imperial Bank of India, and Imperial Bank ofIndia, upon India's independence, was renamed the State Bank of India. Thepresidency banks were like the central banks and discharged most of thefunctions of central banks. They were established under charters from the BritishEast India Company. The exchange banks, mostly owned by the Europeans,concentrated on financing of foreign trade. Indian joint stock banks weregenerally under capitalized and lacked the experience and maturity to competewith the presidency banks, and the exchange banks. There was potential formany new banks as the economy was growing.Under these

circumstances, many Indians came forward to set up banks, andmany banks were set up at that time, and a number of them set up around thattime continued to survive and prosper even now like Bank of India andCorporation Bank, Indian Bank, Bank of Baroda, and Canara Bank. GROWTH AND PRESENT STATUS OF THE INDUSTRY By the 1960s, the Indian banking industry has become an important tool tofacilitate the development of the Indian economy. At the same time, it hasemerged as a large employer, and a debate has ensued about the possibility tonationalize the banking industry. Indira Gandhi, the-then Prime Minister of Indiaexpressed the intention of the GOI in the annual conference of the All IndiaCongress Meeting in a paper entitled "Stray thoughts on Bank Nationalization."The paper was received with positive enthusiasm. Thereafter, her move was swiftand sudden, and the GOI issued an ordinance and nationalised the 14 largestcommercial banks with effect from the midnight of July 19, 1969. Jay prakashNarayan, a national leader of India, described the step as a "masterstroke ofpolitical sagacity." Within two weeks of the issue of the ordinance, the Parliamentpassed the Banking Companies (Acquit ion and Transfer of Undertaking) Bill, and it received the presidential approval on 9th August, 1969. A second dose of nationalization of 6 more commercial banks followed in 1980. The stated reason for the nationalization was to give the government morecontrol of credit delivery. With the second dose of nationalization, the GOIcontrolled around 91% of the banking business of India. After this, until the 1990s, the nationalised banks grew at a pace of around 4%,closer to the average growth rate of the Indian economy. LIBERALISATION In the early 1990s the then Narasimha Rao government embarked on a policy ofliberalization and gave licenses to a small number of private banks, which cameto be known as New Generation tech-savvy banks, which included banks such as UTI Bank (the first of such new generation banks to be set up), ICICI Bankand HDFC Bank. This move along with the rapid

growth in the economy of India,kick started the banking sector in India, which has seen rapid growth with strongcontribution from all the three sectors of banks, namely, government banks,private banks and foreign banks. The next stage for the Indian banking has been setup with the proposedrelaxation in the norms for Foreign Direct Investment, where all Foreign Investorsin banks may be given voting rights which could exceed the present cap of10%, at present it has gone up to 49% with some restrictions.The new policy shook the Banking sector in India completely. Bankers, till thistime, were used to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4)of functioning. The new wave ushered in a modern outlook and tech-savvymethods of working for traditional banks. All this led to the retail boom in India.People not just demanded more from their banks but also received more. CURRENT SCENATIO Currently (2010), overall, banking in India is considered as fairly mature in termsof supply, product range and reach. Even though reach in rural India still remainsa challenge for the private sector and foreign banks. Even in terms of quality ofassets and capital adequacy, Indian banks are considered to have clean, strongand transparent balance sheets-as compared to other banks in comparableeconomies in its region. Indian economy is expected to be strong for long timeespecially in its servicessector. The demand for banking services-especially retail banking, home loansand investment services are expected to be strong. In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase itsstake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the firsttime an investor has been allowed to hold more than 5% in a private sector bank.Currently, India has 88 scheduled commercial banks (SCBs) - 28 public sectorbanks (that is with the Government of India holding a stake), 29 private banks(these do not have government stake) and 31 foreign banks.They have a combined network of over 55,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector bankshold over 75 percent of total assets of the

banking industry, with the private andforeign banks holding 18.2% and 6.5% respectively. FUTURE OF THE INDUSTRY A healthy banking system is essential for any economy striving to achieve goodgrowth and yet remain stable in an increasingly global business environment.The Indian banking system, with one of the largest banking networks in theworld, has witnessed a series of reforms over the past few years like thederegulation of interest rates, dilution of the government stake in public sectorBanks (PSBs), and the increased participation of private sector banks. Thegrowth of the retail financial services sector has been a key development on themarket front. Indian banks (both public and private) have not only been keen totap the domestic market but also to compete in the global market place. Newforeign banks have been equally keen to gain a foothold in the Indian market. The momentum in credit growth has been maintained during 2005-06 due to twofactors: The corporate sector has stepped up its demand for credit to fund itsexpansion plans; there has also been a growth in retail banking. However, even as the opportunities increase, there are some issues and challenges that Indianbanks will have to contend with if they are to emerge successful in the medium tolong term. This report discusses these issues and challenges -- both intrinsic andexternal, such as: Risk management and Basel II The future of banking will undoubtedly rest on risk management dynamics. Onlythose banks that have efficient risk management system will survive in themarket in the long run. The effective management of credit risk is a critical component of comprehensive risk management essential for long-term successOf a banking institution. Although capital serves the purpose of meeting unexpected losses, capital is nota substitute for inadequate decontrol or risk management systems. Coming yearswill witness banks striving to create sound internal control or risk managementprocesses.

With the focus on regulation and risk management in the Basel II frameworkgaining prominence, the post-Basel II era will belong to the banks that managetheir risks effectively. The banks with proper risk management systems would notonly gain competitive advantage by way of lower regulatory capital charge, butwould also add value to the shareholders and other stakeholders by properlypricing their services, adequate provisioning and maintaining a robust financialstructure. The future belongs to bigger banks alone, as well as to those which haveminimized their risks considerably. Consolidation Consolidation, which has been on the counter over the last year or so, is likely togather momentum in the coming years. Post April 2009, when the restrictions onoperations of foreign banks will go, the banking landscape is expected to changedramatically. Foreign banks, which currently account for 5% of total deposits and8% of total advances, are devising new business models to capture the Indianmarket. Their fullfledged entry is expected to transform the business of banking in many ways, which would be reflected in terms of greater breadth of products,depth in delivery channels and efficiency in operations. Thus Indian banks have less than three years to consolidate their position.Despite the stiff resistance from certain segments, consolidation holds the key tofuture growth. This view is underpinned by the following: Owing to greater scale and size, consolidation can help save costs andimprove operational efficiency. Banks will also have to explore different avenues for raising capital to meetnorms under Basel-II Owing to the diversified operations and credit profiles of merging banks,consolidation is likely to serve as a riskmitigation exercises as much as a growthengine. Though there is no confirmation yet, speculative signals arising from the marketpoint to the prospect of consolidation involving banks such as Union Bank ofIndia, Bank of India, Bank of Baroda, Dena Bank, State Bank of Patiala, andPunjab and Sind Bank. Further, the case for merger between stronger banks has also gained ground a clear deviation from the past when only weak bankswere thrust on stronger banks. There is a case

being made for mergers betweenbanks with a distinct geographical presence coming together to leverage theirrespective strengths. GLOBALIZATION/ OVERSEAS EXPANSION Growing integration of economies and the markets around the world is makingglobal banking a reality. The surge in globalization of finance has already begunto gain momentum with the technological advancements which have effectively overcome the national borders in the financial services business. Widespreaduse of internet banking will widen frontiers of global banking, and makemarketing of financial products and services on a global basis possible. In thecoming years globalization will spread further on account of the likely opening upof financial services under WTO. India is one of the 104 signatories of FinancialServices Agreement (FSA) of 1997. This gives Indias financial sector includingbanks an opportunity to expand their business on a quid pro quo basis. As per Indian Banks' Association report Banking Industry Vision 2010, therewould be greater presence of international players in Indian financial system andsome of the Indian banks would become global players in the coming years. So,the new mantra for Indian banks is to go global in search of new markets,customers and profits. REGULATIONS The RBI's approval for banks to raise funds abroad through innovative capitalinstruments holds great significance. Such fund-raising, which includespreference shares, will, however, not just substitute equity; it could haveunintended consequences on the strategies of banks and their profitability. Whilethe cost of raising monies through such instruments is likely to be higher (close to10 per cent), the consequent higher leverage on equity funds is likely to result inexpansion of return on net worth. This is because the same amount of capitalsupports a higher volume of business, generating higher profits.Banks are likely to be able to raise long-term preference shares at coupon ratesbetween six per cent and eight per cent. The positive impact on bank profitabilitycould thus be significant.Preference capital can be used as the currency for acquisition. The advantagefor public sector banks is that they

no longer need to bother about governmentstake falling below 51 per cent. Banks such as Dena Bank, Oriental Bank ofCommerce and Andhra Bank are most likely to benefit from this move. SKILLED MANPOWER There will be a sea change for employees too. Secure jobs will be replaced bycontractual appointments, for a specified period of time. The unions will mergeinto the shadows and bank managements will turn effective. As a result there willbe swifter turn- over of personnel in banks. But at the same time, skilledpersonnel from other disciplines will enter banks in increasing numbers.Factors like skills, attitudes and knowledge of the human capital play a crucial role in determining the competitiveness of the financial sector. The quality ofhuman resources indicates the ability of banks to deliver value to customers.Capital and technology are replicable but not the human capital which needs tobe valued as a highly valuable resource for achieving that competitive edge.Business model, which comprises a comprehensive range of business solutions delivered through a unique balance of portfolio and relationship managementmust be incorporated. FUTURE CHALLENGES Competition Challenges Customer Retention Globalization Shrinking Margin SUGGESTIONS Strong In-house research & market Intelligence Focused marketing- Focus on region-specific campaigns rather thannational media campaigns The growth of the retail financial services sector has been a key development onthe market front. Indian banks (both public and private) will not only be keen totap the domestic market but also to compete in the global market place. Newforeign banks will be equally keen to gain a foothold in the Indian market.

GROWTH AND DEVELOPMENT OF THE ORGANIZATION To evolve and position the bank as a world class, progressive, cost-effective andcustomer friendly institution providing comprehensive financial and relatedservices: integrating frontiers of technology and serving various segment of society especially the weaker section of the society: committed to excellence inserving the public and also excelling in the corporate values.Corporate excellence emanate from good corporate governance exercised byadopting standard of transparency, accountability, professionalism, socialresponsiveness, and ethical business practices with this in view, the has beenmaking efforts for adopting the best practices. The bank commitment towardscorporate governance is to bestow greater transparency and openness in themanagement and to ensure best performance by staff atall the levels tomaximize the operational efficiency. Adopting the corporate governance as awork ethos, the bank is committed to enhancing the stakeholders value. PRESENT STATUS OF THE ORGANIZATION With its presence virtually in all the important centers of the country, PunjabNational Bank offers a wide variety of banking services which include corporateand personal banking, industrial finance, agricultural finance, financing of tradeand international banking. Among the clients of the Bank are Indianconglomerates, medium and small industrial units, exporters, non-residentIndians and multinational companies. The large presence and vast resourcebase have helped the Bank to build strong links with trade and industry. Punjab National Bank is serving over 3.5 crore customers through 4540 Officesincluding 421 extension counters - largest amongst Nationalized Banks. Punjab National Bank with 112 year tradition of sound and prudent banking isone among 300 global companies and seven Indian companies which areexpected to emerge as challengers to Worlds leading blue chip companies.While among top 1000 world banks, The Banker, the leading magazine inLondon, has placed PNB at the 248th position, the bank features at 1308thposition among Forbes Global 2000 list of global giants and fast growingcompanies.

At the same time, the bank has been conscious of its social responsibilities byfinancing agriculture and allied activities and small scale industries (SSI).Considering the importance of small scale industries bank has established 31specialised branches to finance exclusively such industries.Strong correspondent banking relationship which Punjab National Bankmaintains with over 200 leading international banks all over the world enhancesits capabilities to handle transactions world-wide. Besides, bank has RupeeDrawing Arrangements with 15 exchange companies in the Gulf and one inSingapore. Bank is a member of the SWIFT and over 150 branches of the bankare connected through its computer- based terminal at Mumbai. With its state-of-artdealing rooms and well-trained dealers, the bank offers efficient forex dealingoperations in India. The bank has been focusing on expanding its operations outside India and hasidentified some of the emerging economies which offer large business potential.Bank has set up representative offices at Almaty: Kazakhistan, Shanghai: Chinaand in London. Besides, Bank has opened a full fledged Branch in Kabul,Afghanistan. Keeping in tune with changing times and to provide its customers more efficientand speedy service, the Bank has taken major initiative in the field ofcomputerization. All the Branches of the Bank have been computerized. TheBank has also launched aggressively the concept of "Any Time, Any WhereBanking" through the introduction of Centralized Banking Solution (CBS) andover 2409 offices have already been brought under its ambit. PNB also offers Internet Banking services in the country for Corporate as well asindividuals. Internet Banking services are available through all Branches of theBank networked under CBS. Providing 24 hours, 365 days banking right from thePC of the user, Internet Banking offers world class banking facilities like anytime,anywhere access to account, complete details of transactions, and statement ofaccount, online information of deposits, loans overdraft account etc. PNB hasrecently introduced Online Payment Facility for railway reservation throughIRCTC Payment Gateway Project and Online Utility Bill Payment Services whichallows Internet Banking account

holders to pay their telephone, mobile,electricity, insurance and other bills anytime from anywhere from their desktop. Another step taken by PNB in meeting the changing aspirations of its clientele isthe launch of its Debit card, which is also an ATM card. It enables the card holderto buy goods and services at over 99270 merchant establishments across thecountry. Besides, the card can be used to withdraw cash at more than 25000ATMs, where the 'Maestro' logo is displayed, apart from the PNB's over 1094ATMs and tie up arrangements with other Banks. FUTURE PLANS OF THE ORGANIZATION To provide excellent professional services and improve its position as a leader inthe field of finance and related service, build and maintain a team of motivatedand committed workforce with high work ethos; uses latest technology aimed atcustomer satisfaction and act as effective catalyst for socioeconomicdevelopment. The bank is committed to its corporate mission to provide excellent professionalservices and improve its position as leader in the field of financial and relatedservices, build, maintain a team of motivation and committed workforce with highwork ethos, use latest technology, aimed at customers and act as an effectivecatalyst of socio-economic development.Punjab National Bank has focused quite a bit in rural areas, which is actuallyneeded for our country. Their ATMs are given the facility of English, NationalLanguage Hindi and the local language of the state. They also provide mobiletop-up facility.

FUNCTIONAL DEPARTMENTS OF THE ORGANIZATION Executive cards of the organization. They are Executive Director, GeneralManager (GM), Deputy General Managers (DGM), assistant General Managers(AGM), Chief Managers (CM), Managers and other officers are in the hierarchyat the head office level functioning in various Departments.The Zonal Manager and regional Managers head the Zonal Offices and RegionalOfficers respectively who are assisted by other down in

the hierarchy. TheBranch is headed by AGM\CM\ Senior Managers\Managers depending upon thesize of the Branch activities and rendering of satisfactory customer service. The bank has a very good system of delegating power to the differentfunctionaries in the hierarchy to facilitate speedy decision- making process evenup to the branch Level. MARKET PROFILE OF THE ORGANIZATION Today, PNB operates 4,070 branches and 443 service counters across thecountry, consolidating its position as one of the top nationalized banks of India.PNB has been ranked at395Th position amongst the top 1000 global banks bythe prestigious international publication The Banker.Like other scheduled banks in India, the PNB also comes under the guidance ofthe Reserve Bank of India (RBI) and as a government establishment, it has tofollow directions of the government. Two directives, one from the Reserve Bankof India and the other from Indias Department of Official languages are key inthis context. In 1985, the Department of Official Languages mandated that allelectronic equipment used in ministries and departments of the government andtheir attached and subordinate offices would need to be bilingual. That is, theyshould be able to handle both Hindi and English. By the year 2000, the ReserveBank of India had mandated that banks should have a clear IT plan that shouldbe implemented: that at least 7O percent of all branches should becomputerized. With technology emerging as a key driver of business growth, the bank has takena number of IT initiatives to provide its large clientele spread all across thecountry with the best of technology while retaining the all- essential humanwarmth. Its core banking system (CBS) already acts as a single data bank, abackbone to 2,108 service outlets with internet banking services spread over 28states in the country. This deployment has lent PNB the status of being thelargest core banking system in Asia. The bank has 676 ATMs and also coordinates with the MITR group of six bankswith 2,200 ATMs. PNB is a member of Institute Development and Research inBanking Technology (IDRBT)-sponsored National Financial Switch (NFS) formutual ATM transactions. NFS at present has 18 banks and a pool of

6,197ATMs. PNB has also pioneered the cheque truncation system in India. Othersoftware fuelling the systems are instant fund transfer mechanism, datawarehouse for decision control and MIS and risk management software based onBasel II guidelines set by the Bank for International Settlements.About 77 percent of its business is connected through leased lines, ISDN andVPN. Otherservices such as mobile banking utility bill payments, funds transfer,e-commerce and CRM through mobile shall be introduced for the PNB branchesincluding setting up a network operating centre (NOC) to monitor the CBSnetwork. RELATIVE PERFORMANCE Spreads: PNB has the best margins in the banking sector. Return Parameters: On both the return parameters i.e. return on averageasset and return on average networth, PNB is close to the average of thepeer set. Asset Quality: PNBs asset quality as measured by the net NPA ratio ison the higher side. It is just better than the largest scheduled commercialbank i.e. SBI. Coverage Ratio: The provision coverage ratio third best after HDFC Bankand OBC in our set of banks. Operating Efficiency: PNBs cost to income ratio is higher than theaverage of the peer set. However, we believe that once the technologicalplatforms are put in place, the bank will be able to bridge the gap with thenumero uno in this regard. TECHNOLOGY AND BANKING The Quintessence Nature of Banking harmonizesclosely with Technology

Tasks Common to Both

Banki ng

Information Storage Processing Transmissio n

Technol ogy

Balance sheet of the Organisation

Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Sources of funds
Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus 315.30 15,915.63 315.30 12,824.59 315.30 10,467.35 315.30 9,826.31 315.30 8,758.68

Loan funds
Secured loans Unsecured loans Total 2,49,329.80 2,65,560.74 2,09,760.50 2,22,900.39 1,66,457.23 1,77,239.88 1,39,859.67 1,50,001.28 1,19,684.92 1,28,758.90

Uses of funds
Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments 4,215.21 1,491.99 1,701.74 1,021.48 77,724.47 3,930.36 1,513.74 1,533.25 883.37 63,385.18 3,699.64 1,535.70 1,384.12 779.83 53,991.71 2,247.74 293.85 1,237.92 715.98 45,189.84 2,106.92 302.38 1,076.69 727.84 41,055.31

Net current assets

Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written 6,320.07 10,317.69 -3,997.62 5,020.20 18,130.13 -13,109.93 4,380.84 14,798.23 -10,417.38 3,980.80 10,178.51 -6,197.71 3,762.79 9,518.93 -5,756.14 -

Total

74,748.33

51,158.62

44,354.15

39,708.10

36,027.01

Notes:
Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (Lacs) (Rs crore) 1,01,340.25 3153.03 1,11,212.07 3153.03 1,04,055.87 3153.03 74,700.48 3153.03 58,739.31 3153.03

Quarterly results in brief

Jun ' 10 Sales Operating profit Interest Gross profit EPS (Rs) 5,991.86 4,065.81 3,373.29 2,098.17 33.88 Mar ' 10 5,607.63 3,885.68 3,109.68 2,251.01 36.00 Dec ' 09 5,505.54 3,981.73 3,176.44 1,818.18 32.07 Sep ' 09 5,407.23 4,033.99 3,312.29 1,606.30 29.40 Jun ' 09 5,207.42 3,643.00 3,345.61 1,569.34 26.39

Quarterly results in details

Jun ' 10 Other income Stock adjustment Raw material Power and fuel Employee expenses Excise Admin and selling expenses Research and development expenses Expenses capitalised Other expenses Provisions made 871.52 995.22 396.70 534.13 Mar ' 10 853.15 653.17 446.92 621.86 Dec ' 09 731.01 832.73 409.20 281.88 Sep ' 09 668.63 727.60 429.67 215.97 Jun ' 09 970.16 907.64 354.99 301.79

Depreciation Taxation Net profit / loss

495.75 1,068.29

575.57 1,135.03

524.99 1,011.31

463.37 926.96

435.50 832.05

Jun ' 10 Extra ordinary item Prior year adjustments Equity capital Equity dividend rate Agg.of non-prom. shares (Lacs) Agg.of non promotoholding (%) 315.30 1330.61 42.20

Mar ' 10 81.45 315.30 1330.61 42.20

Dec ' 09 315.30 1330.61 42.20

Sep ' 09 315.30 1330.61 42.20

Jun ' 09 315.30 1330.61 42.20

OPM (%) GPM (%) NPM (%)

67.86 30.57 15.57

69.29 34.84 17.57

72.32 29.15 16.22

74.60 26.44 15.26

69.96 25.40 13.47

CHAPTER-3
Discussion on training
Students work Description of live experience Students contribution SWOT analysis of the organization

STUDENTS WORK PROFILE (Role andResponsibility) I worked as a management trainee in Punjab National Bank, Rajendra Place,I was responsible for multiple type of work involved in banking which our services best in the industry. Customers Service This is the counter where customer interacts with the bank personnel firstly Here, I got a chance to know about the different problems of the customers visiting the bank. I helped them to solve their different problems which are as follows: Query solutions Solving their Different queries such as: Document required for new a/c Documents for loan Requirement for new ATM card Providing different forms for different purposes Documents for Micro finance New account opening: To help the customer in opening the new account by filling up their forms along with scrutinizing their documents. This includes checking of residence proof, address proof and witness required. Then generating account number and customer Id in the presence of banking employee. Frills Account They are also known as PNB MITR account. These are the zero balance account specially created for these poor peoples. This account has the facility to avail the overdraft limit of up to Rs.3,000. Cheque clearing This includes checking the cheque details like date of cheque, account number of the customer, signature of the customer.

Loan department

It includes clearing of various types of loans including personal loans, vehicle loan, home loan etc. In the branch I got a chance to visit the working site of the loan applicant with the bank personnel. DESCRIPTION OF LIVE EXPERIENCE The first day in this industry made me feeling like in a heaven because this wasmy first step toward my dream and this was a new thing for me, this was practicalexposure because till now I read only in books about banking ,first day when Ireached bank premises at 9:30 am ,I saw crowd of over 100 people waitingoutside the bank . I usually worked under the supervision and direction of the Business facilator, Mr.Gopalakrishnan at Jangpura exttn. He gave me different responsibilities as per the need, and atthe end of the day I had to report the full days work to him. STUDENTS CONTRIBUTION TO ORGANIZATION As a Management Trainee I worked in all of teams, as a team member my rolewas such as follows: Marketing To collect data from the: Local community Their existing customers NGOs and SHG(Self Help Groups). Cheque clearance It includes: Inward cheque clearance Outward cheques Verifying Cheque details like date of cheque, a/c no. of the customer, signature of the customer, cutting on cheque if any. Loan clearance It includes: Document verification

 Site visit with bank employee for Micro loans Clearance of various types of loans including Micro loan, personal loans, vehicle loan, etc. Customer relationship Provide information such as: Providing information about different products such as FD(Fixed Deposit),RD(Recurring Deposit),mutual funds, Flexible Deposit. Help in solving problems of customers. Procedure and conditions for getting loan SWOT ANALYSIS STRENGTH Wide network Large number of customers Fast adaptability to technology Brand image WEAKNESS Casual behaviour Corruption and red tapism Slow decision making due to large hierarchy High gross NPA

OPPORTUNITIES Home to home banking services Diversification towards other fields Globalization THREATS Stiff competition from SBI and other private players.

CHAPTER -4
FINDINGS

1. SHARE OF DIFFERENT TYPES OF ACCOUNTS IN THE BANK. Sl. No 1. 2. 3. 4. 5. Total Nature of No. of Account respondents Saving A/Cs 78 Current A/Cs 9 Fixed Deposits 4 Loans 3 Others 6 100 % respondents 78% 9% 4% 3% 6% 100% of

Graph - 4.1 Classification based on nature of A/Cs

Others Loans Fixed Deposits Current A/Cs Saving A/Cs 0 10 20 30 40 50 60 70 80

Series1

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

2. SATISFACTION OF RESPONDENTS WITH SERVICES OFFERED BY PNBBRANCH. Sl. No. 1. 2. Total Response Satisfied Not satisfied No. respondents 89 11 100 of % of respondents 89% 11% 100%

Graph - 4.2 Classification based on satisfaction level of respondents

Not satisfied

Series1 Satisfied

20

40

60

80

100

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

3. RATINGS OF THE SERVICES OFFERED BY RESPONDENTS LIFE INSURANCE COMPANY Sl. No. 1. 2. 3. 4. 5. Total Ratings Excellent Very good Good Average Poor No. of respondents 5 9 76 6 4 100

THE

% of respondents 5% 9% 76% 6% 4% 100%

Graph - 4.3 Classification based on Rating of the service offered by PNBbranch

80 70 60 50 40 30 20 10 0 Excellent Very good Good Average Poor Series1

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

4. TABLE SHOWING MOTIVE BEHIND THE SELECTING PNB Sl. No. 1. 2. 3. 4. Attribute Brand Name Customer service Interest Others Score 56 30 12 2 Rank 1 2 3 4

Graph - 4.4 Motive behind the Selecting of PNB

Brand Name Customer service Interest Others

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

5. CONSUMERS WILLINGNESS TO RECOMMEND THEIR LIFE INSURANCECOMPANY TO OTHERS Sl. No. 1. 2. Total Responses Recommended Not recommended No. respondents 92 8 100 of % of respondents 92% 8% 100%

Graph - 4.5 Classification based on the willingness to recommend PNBbranch services to other banks

100 80 60 40 20 0 Series1 Recommended Not recommended Series1

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

6. CONSUMERS WILLINGNESS TO SHIFT THEIR A/Cs TO OTHER BANKS Sl. No. 1. 2. Total Responses Shift Doesnt shift No. of respondents 9 91 100 % of respondents 9% 91% 100%

Graph - 6.6 Classification based on the willingness of respondents to shifttheir A/Cs to other banks

Shift Doesnt shift

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

CHAPTER-5
Observations Suggestions Recommendations

OBSERVATIONS It has been observed that to put a new organization into a running position ismuch more difficult than to handle a already working organization, managerstask is difficult in a banking industry he is the person who is completely liable forthe working of branch. To put a right person at a right job is not an easy task forthe manager. I observed some of the factors in my branch such as: Lack of staff lack of Efficient staff Brach working space lack of speed Lack of quality service Complicated work procedure Not providing service on time Beside all these factors the branch has also achieved some achievements suchas 1200 accounts in 2 days and distribute micro loan of around 3 crores rupeesto different 55 Self Help Groups to start their small businesses. Opening of Micro branch in India is also a achievement and it is a starting ofnew type of banking revolution which can change the life of villagers whichdepends on the MAHAJAN to lend them money at high interest rate. Issues with Customers Not only employees, there are problems for customers too when a new technology arrives The major challenges Comfort levels Security and trust issues Convenience factor Getting rid of myths Migration from existing to new systems Changing the habits

SUGGESTIONS With regard to banking products and services, consumers respond atdifferent rates, depending on the consumers characteristics. Hence IPNB should try to bring their new product and services to the attentionof potential early adopters. Due to the intense competition in the financial market, PNBshould adopt better strategies to attract more customers. Return on investment company reputation and premium outfloware most preferred attributes that are expected by therespondents. Hence greater focus should be given to theseattributes. PNB should adopt effective promotional strategies to increase theawareness level among the consumers. PNB should ask for their consumer feedback to know whether theconsumers are really satisfied or dissatisfied with the service andproduct of the bank. If they are dissatisfied, then the reasons fordissatisfaction should be found out and should be corrected infuture. The PNB brand name has earned a lot of goodwill and enjoyshigh brand equity. As there is intense competition, PNB shouldwork hard to maintain its position and offer better service andproducts to consumers. The bank should try to increase the Brand image throughperformance and service then, only the customers will besatisfied. Majority of the people find banking important in their life, so PNBshould employ the strategies to convert the want in to needwhich will enrich their business.

RECOMMENDATIONS With the changing banking system, this branch has also to adapt the new waysof banking such as: Shifting new and young staff to this branch Give them good incentives so that they stay there for longer time period asper the location Complicated form should be replace with easy forms Provide easy norms for new account opening. Well trained staff be placed to increase work pace and to decrease pertransaction time also. Local people should be appointed to handle the customers.

CHAPTER-6
SUMMARY

SUMMARY OF LEARNING EXPERIENCE While working in Punjab National Banks Circle Office, I got indepth knowledge about role of I.T in Banking industry. I recognize that there is a lot more to discoverand learn, I learned to be more responsible, have more patience and most important it helped me to learn how to handle the work pressure. I got to know what all different types of question can be asked by a banking customer, as the branch was in the village area with population of about 2 lakhs peoples where there was only one other banks branch, it was difficult to handle minimum 500-700 persons per day with the queries like : Whats the procedure to open an account? Whats the procedure to get an ATM card? Whats the procedure to get a pass book? Whats the procedure to get a cheque book? How to fill ATM form? How to fill all other different forms like cheque clearance form, cash deposit form, cash withdrawal form, etc.?

Besides the query solution I also filled up the form for the illiterate and old peoples and helping them for their requirements. Apart from customer service I got to know about the micro finance and the procedure and all document required for it and types of people who can get the micro loan.

CHAPTER-7
WEBLIOGRAPHY QUESTIONNAIRE

WEBLIOGRAPHY Websites:www.finance.indiamart.com www.allbusiness.com www.ficci.com www.business.mapsofindia.com www.pnbindia.com www.gyanguru.org www.info.gov.hk www.indiainfoline.com www.indiaearnings.moneycontrol.com www.assamagribusiness.nic.in www.bna.com/ www.corporateinformation.com www.outlookmoney.com www.business-standard.com Magazine:India today Business world Businesstoday

Questionnaire
Name: Address: Contact No.: 1. Which type of account you prefer in the bank? (a) (b) (c) (d) (e) Saving A/C Current A/C Fixed deposits Loans Others

2. Are you satisfied by the services offered by PNB branch? (a) Satisfied (b) Not satisfied 3. How you rate the services offered by PNB? a) Excellent b) Very good c) Good d) Average e) Poor 4. What was your motive behind selecting PNB? (a)Brand name (b)Customer service (c)Interest (d)Others

5. Do you recommend life insurance from other company? (a)Recommended (b)Not recommended 6. Are you willing to shift your account to other Bank? (a)Shift (b)Doesnt shift