Research Project

on

Application & Management of Information System
in

Punjab National Bank
IN PARTIAL FULFILLMENT OF MASTER’S DEGREE IN BUSINESS ADMINISTRATION INDRAPRASTHA UNIVERSITY (2008-2010)

Submitted by:
Pratik Jain -- 0781563908 Northern India Engineering College (N.I.E.C), Delhi

Under the valuable guidance of:
Mrs. Shaveta Kumar (Faculty, N.I.E.C)

Subject: Information System Management Course Code: MS-205 Submitted on: 30 17 November, 2009

1

Acknowledgement
This formal piece of acknowledgement is an attempt to express the feeling of gratitude towards people who helped me in successful completion of research project. I would like to express my deep gratitude to Mr. B.D Sharma (branch manager, PNB), for his constant co-operation. He was always there with his competent guidance and valuable suggestion throughout the pursuance of this research project. Special thanks to Mrs. Shaveta Kumar, my internal coordinator who guided me to work honestly and to give valuable suggestion for improving my work. Above all no words can express my feelings to my parents, friends all those persons who supported me during my project. I would also like to thank almighty God for his blessings showered on me during the completion of project report.

2

2. IMPACT OF INFORMATION SYSTEM 1.a Straight to Processing (STP) 2.c Bank Mate & EDI PNB IT Setup 3.The Beginning 1. 15 4. 8.a Payroll TPS 4.b Depository Setup 2. WAN & Connectivity 3. 3.e 2009. 4.NO Topic Name Page Number 2 4 5 6 7 8 Acknowledgement COMPANY PROFILE 1.a 2000. 12 3.Long Term Strategy 1.100% CBS Implementation Other Banking Applications 2.c 2004-2007.Growth 1.e Hardware & Software Resources Organizations Other Computing Resource 4. Origin – Punjab National Bank Profile Vision and Mission Financial Performance Comparison History of Information System in PNB 1. Available Alternatives Conclusion Suggestion References 16 17 18 19 20 21 3 .c Storage.b Online Assistance 4. Sub Topic S. RTGS & Mobile Alert Service Finacle’s Impact Impact on Employees.d 2008. 7. 2.a Systems 3.d Security Systems 3. 5.N O 1. 2.MIS 4. 6.b Network Design 3.d SPNS.INDEX S. 13 4. 2. Customers 3.b 2001-2003.c Account Opening . INFORMATION SYSTEM IN PNB 1.Rural Initiative 1.

undivided India. PNB has continued to retain its leadership position among the nationalized banks. The large presence and vast resource base have helped the Bank to build strong links with trade and industry. medium and small industrial units. Punjab National Bank offers a wide variety of banking services which include corporate and personal banking. London. 20 different foreign currency accounts are maintained at major centers all over the globe. financing of trade and international banking.4668 Offices including 432 Extension Counters spread throughout the country. The bank enjoys strong fundamentals. Ranked as 248th biggest bank in the world by Bankers Almanac. Strategic business area covers the large Indo-Gangetic belt and the metropolitan centers.Company Profile – Punjab National Bank Origin (The name you can bank upon) Established in 1895 at Lahore. From its modest beginning. Well equipped dealing rooms. industrial finance. Punjab National Bank (PNB) has the distinction of being the first Indian bank to have been started solely with Indian capital. The bank was nationalized in July 1969 along with 13 other banks. agricultural finance. PNB has remained fully committed to its guiding principles of sound and prudent 4 . Among the clients of the Bank are Indian conglomerates. exporters. Besides being ranked as one of India's top service brands. relationships with more than 217 More than 50 renowned international banks maintain their Rupee Accounts with PNB. the bank has grown in size and stature to become a front-line banking institution in India at present. large franchise value and good brand image. Largest branch network in India . nonresident Indians and multinational companies. With over 38 million satisfied customers and 4668 offices. • • • • • • • A professionally managed bank with a successful track record of over 110 years. Profile With its presence virtually in all the important centers of the country. Strong correspondent banking international banks of the world.

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”. payment of bills of utilities.setc.banking. Kabul and Norway. The BC/BF will address the outreach issue while technology will provide cost effective and transparent services. Singapore. Shanghai.46. Towards developing a cost effective alternative channels of delivery. A second branch in Hongkong at Kowloon was opened in the first week of 5 . the bank with more than 2150 ATMs has the largest ATM network amongst Nationalized Banks. bullion business. one of the major achievements of the Bank is covering all the branches of the Bank under Core Banking Solution (CBS). The bank has made rapid strides in this direction. PNB has achieved significant growth in business which at the end of March 2009 amounted to Rs 3. Today. construction workers. The Bank has launched a drive for biometric smart card based technology enabled Financial Inclusion with the help of Business Correspondents/Business Facilitators (BC/BF) so as to reach out to the last mile customer.408svillages. dairy farmers.64. etc. Apart from offering banking products. The Bank has already achieved 100% financial inclusion in 21. Backed by strong domestic performance. the Bank continues its selective foray in international markets with presence in Hongkong. PNB is ranked as the 3rd largest bank in the country (after SBI and ICICI Bank) and has the 2nd largest network of branches (including three overseas offices). With its policy of inclusive growth in the Indo-Gangetic belt. The bank has also been offering Internet banking services to the customers of CBS branches like booking of tickets. Kazakhstan. vegetable vendors. With the help of advanced technology. thus covering 100% of its business and providing ‘Anytime Anywhere’ banking facility to all customers including customers of more than 2000 rural branches. life and non-life insurance business. the bank has also entered the credit card & debit card business. UK. Dubai. the bank is planning to realize its global aspirations. In order to increase its international presence.463 crore. with assets of more than Rs 2. the Bank has been a frontrunner in the industry so far as the initiatives for Financial Inclusion is concerned. Gold coins & asset managementsbusiness. purchase of airline tickets etc. Since its humble beginning in 1895 with the distinction of being the first Indian bank to have been started with Indian capital. The Bank has started several innovative initiatives for marginal groups like rickshaw pullers.900 crore. Along with the achievement of 100% branch computerization.

Vision and Mission Vision "To be a Leading Global Bank with Pan India footprints and become a household brand in the Indo-Gangetic Plains providing entire range of financial products and services sssssssunder one roof" Mission "Banking for the unbanked" 6 . more inclusive approach to banking. Canada and Singapore. thrust on recovery and increased efficiency in core operations of the Bank. improved margin management. PNB is at the 1166th position among 48 Indian firms making it to a list of the world’s biggest companiesscompiledsbysthesUSsmagazines‘Forbes’. Nepal.April’09. (EBL). The impressive operational and financial performance has been brought about by Bank’s focus on customer based business with thrust on SME. DIFC Dubai. total Business. Agriculture. In particular. Australia and Indonesia. Bank proposes to start its operation in Fiji Island. operating and net profit in the year 200809. Amongst Top 1000 Banks in the World. Further. The bank also has a joint venture with Everest Bank Ltd. Under the long term vision. the bank has retained its NUMBER ONE position among the nationalized banks in terms of number of branches. Deposit. ‘The Banker’ listed PNB at 250th place. better asset liability management. Punjab National Bank continues to maintain its frontline position in the Indian banking industry. Bank is also in the process of establishing its presence in China. Bank continues with its goal to become a household brand with global expertise. Bhutan. Advances.

During the FY 2008-09. maintaining its number ONE position amongst nationalized banks.Performance Comparison over the years Punjab National Bank (Performance Chart) (Amount in Rs Crore) All Banks Average During the FY 2008-09.091 crore.17% respectively. the bank achieved a net profit of Rs 3. the Bank has the Gross and Net NPA ratio of 1. As on March’09.03% as on March’09. its’ ratio of priority sector credit 7 . Bank has a strong capital base with capital adequacy ratio at 14.77% and 0.

store. PNB was relying on manual processes to collect. The 500-odd branches were not networked and only 35 percent of the bank's business was computerized. Its retail branches were not connected and it was difficult for management to understand business drivers and impediments. The overall expertise in IT among users was low. The Central Vigilance Commission (CVC) issued a directive to the bank to computerize at least 70 percent of its business by December 2000.The Beginning In March 2000.to adjusted net bank credit at 41. and analyze business data. At that time there were various factors which caused a barrier in implementing an Information System for centralized banking. These weaknesses were:8 . Manual operations were also costly to support.72% was also higher than the respective national goals of 40% & 18%. This prompted the bank to work out a strategy to tackle the daunting task in the short period of time. on standalone PCs. The bank used seven different software. This situation made it difficult for PNB to provide optimum customer service and resulted in lost opportunities. which ran on 13 different flavors of UNIX. Information System in PNB History of Information System at PNB 2000 . the penetration and use of IT was not very high at PNB.53% & agriculture credit to adjusted net bank credit at 19.

Standalone versions were chosen since there weren't LANs in place. By March 2001.To create a dependable core banking infrastructure and build a nationwide network to connect different branches to the core infrastructure. 'Partial Branch Automation' application.• • • • • Different Unix OS used in different branches. The verdict of the consultants was to deploy a centralized core banking architecture. Lack of interoperability due to disparity in systems. The core team modified and customized the package according to its specific needs. PNB hired a consultant and devised a two-pronged plan of action. which would be the heart of the project. 2001-2003 . PNB wanted a technology that would consolidate all its business resources and sustain the bank's future growth. A core team was selected. As the time passed besides making a mark in terms of revenues. • A long term goal . the bank— among the few technology-savvy PSUs—set up examples for other banks. On 30 March 2001. 9 .60 percent of the bank's business was computerized. and thus easy for the bank personnel to use. Limited expertise on the software packages currently deployed. 70. and deployment of LANs at branches would take so long that the CVC deadline couldn't be met. which would play a vital role in its success. PNB chose a product from a company called Nelito. The plan comprised: • A short term goal .To meet the CVC deadline of 70 percent computerization. It was a DOS-based. Different standalone financial applications on PCs at different branches. Most branches did not have a proper LAN in place. Infosys trained 200-odd personnel from a core team over six months. The interface was simple in design. Three consultants were appointed to review technology options for long-term adoption. It also wanted to create its own network. the bank used the services of Infosys for the deployment of Finacle. especially PSUs in early of this decade. The bank requested CVC for an extension of the deadline and was granted time till March 2001.The Long Term Strategy In the long-term.

A lot of infrastructure from Cisco has been used to build the data center. the bank had only 36 percent of its businesses covered on computers. In April 2002 the bank rolled-out Finacle in 7 branches as a pilot venture. This was quite an achievement considering that the technology transformation started only two-and-a-half years back at PNB. This was done because the bank had seven different application packages. The bank continued to spread the technology to more of its branches and centers. security infrastructure. the number of locations has increased to 12. thereby offering financial products at an affordable cost. In March 2000. presented PNB with the award for excellence in banking technology in 2002. India's National Association of Software and Service Companies (NASSCOM) nominated Punjab National Bank (PNB) as the best user of technology in its sector. The second module for implementation of the software envisages collection 10 . The adoption of Core Banking Solution not only ensured standardization of products. 2004-2007 – The Growth Stage In 2004. The implementation of the system comprised two modules. all data from other software was successfully migrated into Finacle and by end of year.2004 Punjab National Bank (PNB) has introduced Loans and Advances Data Desk for Evaluations and Reports. and it wanted to ensure smooth migration of the data into Finacle. The first module would require branches to capture data on borrowal accounts as a one-time activity with transaction updates at periodic intervals. The core banking solution offered seamless platform for integrating various such initiatives and also reduces the cost of transaction. This system enables an individual having an account in any of our branches to conduct transactions/operate the account from any of these 12 branches.Institute for Development and Research in Banking Technology (IDRBT). as against 84 percent in 2002. a computerized management information system for rationalization of returns. By mid May 2002. and storage equipment and decided to house it in its own central data center in New Delhi. As far as the centralized core banking system is concerned. PNB has a data centre at the corporate office and all these 12 centers have an extension to that data. but also enabled quick launch of the new and innovative financial products ensuring sufficient lead time to market it. (LADDER). credit monitoring and NPA management. PNB purchased servers. On May 27. a division of the Reserve Bank of India (RBI). asset classification and provisioning.

adhere to statutory compliance.of information on the loan accounts from the stage of receipt of application to disbursement of sanctioned loans. Consolidation 11 . improving branch efficiency and productivity per employee. all this is needed at a substantially lower cost for RRBs as their operations were relatively less complex. 2009 India's second largest public sector bank. With the implementation of this system. 2009 – 100% CBS Implementation In Feb. Finacle enabled RRBs to better manage audit processes. Moreover. Due to the remoteness of rural branch locations. Punjab National Bank took lead in business excellence and commitment to customers by providing core banking coverage to its 4850 service outlets. The bank implemented industry-leading Finacle CBS across its operations running a flexible and scalable database platform from Oracle and innovative and costeffective Sun SPARC enterprise serversafromaSunaMicrosystems. Finacle from Infosys recognized this need of RRBs and adapted its industry leading core banking solution to suit the requirements of these institutions. A majority of Indian banks were already ahead in terms of adoption of new age technology. Finacle has enabled the bank to consolidate and centralize its operations. PNB management selected this platform to transform and standardize the operations of its RRBs. enhance internal MIS requirements and offer customers competitive services on par with commercial banks. centralization of data. and enhancement of customer service as well as innovation in banking products. there were issues such as connectivity of branches for operational ease. 2008 – Rural Initiative Infosys Technologies Ltd (Infosys) and Punjab National Bank (PNB) in 2008 announced that PNB has chosen Finacle from Infosys to power its core banking initiative for rural banking deploying Finacle across PNB’s six Regional Rural Banks (RRBs) covering 1300 branches. announced that it has completed 100 per cent core banking implementation at its 4604 branches and extension counters through the FinacleaUniversalaBankingaSolutionafromaInfosys. Extending the benefits of technology to RRBs helped sponsor banks in not just priority sector lending but also present an additional business avenue with tremendous potential. manual collation of a large number of loan-related returns become redundant and branch staff concentrated on business development and objective monitoring of asset quality.

mobile banking and Internet banking. SMS banking. remote access facility through its website. under a license from RBI to launch Internet banking. The solution's scalability has also enabled the bank's scalability to be the best in the countryawithatheanumberaofapeakatransactionsaata3. The biggest advantage of STP is that if a person with an account in Delhi deposits a cheque in Chennai. 38 million PNB’s customers are enjoying the facility of “one bank – one account”. As a result. his account in Delhi gets updated the 12 . etc. The bank also enabled customers to avail of the Straight to Processing (STP) facility. while increasing ease of technical support and maintenance at branches.has also resulted in reduction of revenue leakage and cost. In addition.5amillion. the bank has covered all the branches under CBS platform including extension counters. The bank was awarded “IBM green award” for adopting environment friendly technology for data warehouse implementation during the year. Other Banking Applications The banking major also introduced a number of value added services like ATMs. Further. the bank has intended to build a data center capable of handling business of 6000 branches and 1 lakh terminals. Tele-banking.

This is already in operation at around various branches and PNB is also getting orders for this package from other banks. The PSU has also introduced bilingual software known as Bank-mate. As far as the hardware platform is 13 . Thus. whatever duties are required to be deposited with the Customs department can be debited from the importer’s (read customer’s) account automatically. one does not have to bother about the loss of paper. customers can collect their tickets from the ATM machine and the payment can be made using credit or debit cards.same day. Once this is successful and the interface is done. PNB had to customize it and also built a module for government businesses into this package. the bank plans to enable all their ATMs across the country on this platform. Other OS like Microsoft’s windows 2000/ XP are also enabled in centers. which is further connected to several branches of PNB and also to importers. deposit of income tax. PNB’s team has also customized this package to suit the typical requirements of a public sector bank. The bank has standardized all its platforms on UNIX operating system and RDBMS on Oracle. Once this is functional. deposit of different duties and treasury payments. The pilot project for this has already been carried out and the bank plans to introduce this service soon. It is putting up an ATM machine at the New Delhi station’s reservation office. Electronic Data Interchange (EDI) is another technology initiative that the bank has taken up. It has entered into an agreement with the Customs department wherein the Customs’ server is connected with the bank’s corporate office server. Another very interesting development with PNB is its contract with Indian Railways. Thus. The bank also has a depository set-up (to store dematerialized share certificates) at its corporate office in New Delhi and another in Mumbai. keeps a digital copy of all these documents. which is going to be a interface between the Railways’ server and the bank’s server. PNB’s IT Setup PNB also has a number of applications running on its network like any other Financial Institution. The bank. “As PNB handles huge number of government accounts—public provident fund. on the other hand. or a signature that does not match and so on. Customers can now instruct the bank at any point of time to transfer these securities. Customers owning shares and bonds can deposit them at these depositories after which the hard copies are destroyed. With the help of this software one can generate reports in Hindi and also can get his/her passbook in Hindi.

Around 164 Sun enterprise class servers are used in DAS architecture. Network design Cisco has tied up with PNB to evolve the network design and implement a nationwide network backbone to connect all its offices. data is stored permanently. It also used Bharti's leased line between Mumbai and Delhi. Sun's Fire servers. the bank is still using DOS machines to run some of their ATMs. The converged network infrastructure allowed PNB to standardize the applications and software needed to provide the banking services. 802. The bank also used Reliance Infocomm's fiber optic backbone along with the leased lines in locations where the optic fiber does not reach. PNB used servers which were NT-based. And it was satisfied with the performance of Sun's hardware on Solaris. Later look over a storage management application from VERITAS. 14 . and in three years the WAN had 2000-odd branches. The bank conducted benchmarking tests for Finacle on various server platforms. The bank put 500-odd branches on the WAN in 2002. The bank then explored the option of leased lines and used connectivity from MTNL and BSNL. Apart from this. and Oracle's RDBMS are now in use.concerned. The bank tried a number of connectivity options. At some locations. Solaris OS. they are also using Compaq.11b wireless connectivity was installed in five branches to begin with. Provisions have been made to store transaction data for around 10 years. WAN and connectivity 101 branches of the bank were on a WAN in 2000. The various branches are connected to the data center using new-world routing and switching technologies. Systems Before deploying the core banking architecture. Storage systems The bank has followed RBI's storage requirement guidelines. from IBM. Cisco will assist the bank in understanding and implementing the various technologies associated with the project. In some cases. The Sun hardware uses an in-built storage management tool. PNB has Sun Microsystems’ Web servers at the data centre. and from other vendors. The total capacity is of multiple TBs. IBM and Xeon servers.

Software Resources PNB is using various software’s for its operational activities for its smooth and efficient running. Trojan. XP etc.  Sun’s hardware for Solaris.  Routers. Windows NT. FTP.UNIX. TELNET. VeriSign provided the necessary Public Key Infrastructure (PKI) to the bank for secure transactions. UTP etc. DNS.  Protocols: .IP. There's a live link between HCL and PNB's IT head office.Spyware. All data transactions between its routers and switches are encrypted. Cisco was chosen as the service provider who could meet these stringent requirements. VoIP etc.. Solaris.  Network Cards.MS Access. The network is monitored remotely and can also be viewed at the bank's IT facility. Oracle. the Software used by PNB include: Microsoft office 2003  Acrobat Reader  Bank-mate  Attack Filters: . where a separate monitoring system is used. The bank appointed security administrators.  Printer  NT Based servers from IBM. FoxPro. MS SQL. Hardware Resources To fulfill the requirement and as per compatibility with software these hardware are used: HCL.PNB had appointed HCL Com-net to carry out 24x7 monitoring of the countrywide network. The bank uses a range of security products like Firewalls and IDSs from Cisco for its security needs in its LANs and WAN. HTTP. reliable.  Operating System’s:. The security architecture had to be robust. IBM etc Desktops. The security integrator is responsible for the complete security infrastructure and is answerable for any security breach or lapse. VLAN. TCP. 2000 Server. Security Systems Security was especially important because the bank could afford no compromise. and scalable to meet current and future needs.  Databases: . Scanners etc… 15 . It has appointed Ramco Systems as the security integrator.

RTGS (Real Time Gross Settlement) RTGS System is a payment settlement system that minimizes the credit risk in the prevalent cheque clearing system. online complaints. account. the first SPNS launched in Mumbai by IBA. The banks that participate on this network could issue the cards to customers for transacting on networks. address. type of account. Account Opening In account opening the MIS is used. these helps in Identification of customer instantly and creating a database at faster rate.Organizations Other Computing Resources Payroll Transaction Processing System Payroll TPS. SPNS (Shared Payment Network System) Swadhan. updating the data elements. their sample signature. Under RTGS the funds are settled on a near real time basis across Banks in different locations. These complaints and assistance are processed by customer care services executive. Online Assistance PNB provides its customers online assistance by providing i-banking. providing them information about various products and services. address. which is a typical accounting transaction processing system found in PNB. Mobile Alert Service 16 . or employee number) called data elements. This report is checked and approved by the branch manager after which cheque is issued to the employee. Management notices the record of the employee’s efficiency to work and may declare added bonus or other incentive. Data are keyed into the system. The master file is composed of discrete pieces of information (such as a name. Bank offers this immediate electronic fund transfer facility to RTGS enabled bank branches across through the country its designated RTGS enabled locations. The elements on the master file are combined in different ways to create reports of interest to management and government agencies and to send paychecks to employees. A payroll system keeps track of the money paid to employees. This includes the filling of KYC and AC forms. every information about the customer is recorded like their name. account information.

Customers. The solution has an integrated CRM module enabling banks to offer a rich and differentiated value proposition to customers. • Differentiated Product Spread 17 . competition. web-enabled technology and 24 X 7 operations ensure multi-channel. banks can meet the challenges of managing change. With Finacle core banking solution. The system provides information on the past. present and project future and on relevant events inside and outside the organization. but an information system is all about providing the best information the user needs to do their task more effectively. The industry & Government.The clients now have the facility to subscribe to Mobile Alert Service for receiving alerts on registered mobile phone numbers instantly after the funds are pooled. The layered Service Oriented Architecture (SOA). compliance and customer demands effectively. integrated yet modular business solution that effectively addresses the strategic and day-to-day challenges faced by banks. It is highly parameterizable providing that muchneeded flexibility to adapt to a dynamic environment. A database simply provides data. Finacle’s Impact Finacle core banking solution is a comprehensive. It also takes into account that different users doing their own specific tasks may need to see their information presented in differing ways. The implementation of Information Systems in PNB and other financial institutions had a vast impact on the Employees (the way they work). multi-country and multi-currency implementations. understand and respond correctly to that information. Impact of Information Systems An information system is there to empower its users. The functionality-rich modules in the solution provide banks with a varied palette of features to continuously innovate on their product and service offerings. STP capabilities. The benefits of an information system follow when the user can quickly access.

increasing output and enabling speedy completion of tasks. This empowers banks to effectively manage customer relationships and aggressively explore cross-sell opportunities. The product bundling capabilities of the solution offers a wide range of possibilities for banks to create products with innovative features. removal of redundancies. empower banks to continuously innovate and extend their suite of products. It took around six-eight months for the personnel to felt that the 18 . Straight through Processing (STP) abilities enhance reduction in turnaround and processing time. • Robust Cross-sell Framework The CIF and CRM capabilities in Finacle offer a unified view of the customer across the entire solution and across multiple back-end applications. ensuring lesser vendor dependency and faster adaptability to changing business conditions. This gave rise to a number of queries and suggestions from personnel. Most staffers were used to working in a manual environment. Impact on Employees Information System serves employees with user friendliness. enabling the bank to view the customer from a completely informed angle. • Increased Operational Efficiencies and Productivity Finacle core banking solution supports business events automation and process orchestration. fastening up of the processes and providing up of multiple views at same time. In the new networked environment. easy storage and access of data. thus eliminating manual tasks and reducing process time. The facilities provided for differential pricing. The elimination of error and data redundancies also results in increased branch productivity. across segments. personnel at the node/counter didn't actually 'see' the transactions updating in the various account books.Finacle core banking solution offers an unlimited palette of features for banks to design and deploy products for varying market segments. and some had worked in standalone environments. • Agile Operations The Service Oriented Architecture (SOA) enables the IT team at the bank to effect changes without touching the base code. The multilingual web-based single repository of information enables remotely located bankers to collaborate and transact seamlessly. channel rules and customization through Finacle Studio – the scripting engine. In beginning the issues were mostly cultural.

Not to forget the pro-active government reforms that are helping the Indian banking market reach greater heights and adding glitz and glamour to Indian economy as a whole. But now a day’s SAP ERP programmes are giving a tough competition to Finacle. These are:- • • • • • Office Accounting Professional 2009 SAP ERP Financials Tally 9: Financial Accounting and Inventory Management Software Flexcube – ‘i-flex solutions’ Hyperion Financial Management . and they were used to working on the systems. but Infosys Technologies’’ Finacle doesn’t took long enough to overtake Flexcube. Other then Finacle from Infosys there are various available alternatives for which the banking industry and financial institutions can opt. an independent banking solutions rating vendor.System 9 While in past i-flex solutions’ flagship product Flexcube has been rated the #1 banking product in the world by UK based IBS. which has carved a name for itself in the global arena. 19 .environment 'change' had done them good. Other Available Alternatives The Indian banking sector is slowly coming of age and hand grooming this sector is the banking solution market.

especially offering better delivery channels and customers’ friendly services. call centers. telebanking. Citibank. data warehousing have totally transformed the banking industry. SBI and PNB are offering online services to their customers. smart cards. Anywhere banking. automated teller machine(ATMs). To train users the bank has set up more than 20 . Consequently.Conclusion A management information system is a system or process that provides the information necessary to manage an organization effectively. UTI Bank. This report starts with the Punjab National Bank with overview of PNB followed by history of information system and the steps taken by PNB to be effective in banking industry by using information’s technology. IT seems to be the prime mover of all banking transactions. ATMs have emerged as the most favored channel for offering banking services to the customers in the world. net banking. Standard Chartered Bank. PNB’s profitability has also increased. Electronic and Information Technology together are bringing a swift change in the way banks operate. Today. Today almost all the major banks in India like ICICI Bank. mobile banking. ABN Amro. Information Technology (IT) innovations in the last few years have changed the landscape of banks in India. CRM. credit cards. One of the biggest benefits that the bank has derived out of IT has been the tremendous saving on recruitment front—the bank has not recruited more staff even while the business and work pressures have gone up five times. MIS and the information it generates are generally considered essential components of prudent and reasonable business decisions. debit cards.

data storage. The report discuses the inbound and the outbound logistics and relate all the processes of TPS used in the bank with the Information System is enabling the bank to provide the quality and satisfactory services to their customers.15 computer training labs across the country.  The bank should update all their software.  The bank must update Hardware to get maximum performance from Information Systems in order to allow the IS to procure the least amount of system resources it requires for functioning. These TPS holds all the activities from the manager and employees to the customers. efficiency. But to improve more and regarding future success of PNB here are the some suggestions. It explains all the TPS how the transactions are made by the bank. updating of records. payroll and the processing of the complaints.  Steps should be taken to increase the safety & to avoid the unethical practices like phishing. fast data retrieval. new allowances etc… to the routine work including cash and payments record. networks etc to keep information system up to date for competitive edge. using of these TPS from the new events such as account opening. Suggestions The bank is using information system efficiently and it has increased the customer satisfaction. 21 .  Need for improved training for using Information Technology and tools to employees.  Intra firm communication should be improved. customer satisfaction.

shtml http://www.financialexpress.com/200305/tech4.networkmagazineindia.com/news/pnb-in-networking-pact-withcisco/64296/ http://www. 22 .business-standard.com/20021202/banks7.shtml http://www.com/ http://netpnb.expresscomputeronline.com/ Books:PNB Vision 2007-2008 Zonal Training Centre Guide.References Websites:http://www.pnbindia.com/india/news/pnb-to-implement-loan-datasoftware/151819/ http://www.

23 .

Sign up to vote on this title
UsefulNot useful