Project

11
CONTENTS
SL.No. Topics
Chapter-1 Introduction of the study
Chapter-2 Introduction of the organization
Chapter-3 Discussion on training
Chapter-4 Findings
Chapter-5 Observation, Suggestion & Recommendation
Chapter-6 Summary
Chapter-7 Webliography & Questionnaire

T.John College, Bangalore 2
Role of I.T. in Banking Industry
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 its customers. 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):
 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
The 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, self-
service 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 IN BANKING

INDUSTRY.
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 consumer’s
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 consumer’s 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 sharpens skill.
 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 consumer’s 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

customer’s 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 address issues such as quantity, cost, efficiency,
effectiveness, and adequacy. Descriptive studies may or may
not have the potential for drawing powerful inferences. A
descriptive study, however, does not explain why an event has
occurred or why the variables interact the way they do.
SAMPLE METHOD
Convenience sampling method is used for the survey of this
project. It is a non-probability sample. This is the least reliable
design but normally the cheapest and easiest to conduct .In
this method Researcher have the freedom to choose whomever
they find, thus the name convenience. Example includes

informal pools of friends and neighbours or people responding
to a newspaper’s invitation for readers to state their position on
some public issue.
SAMPLE SIZE
Sample size denotes the number of elements selected for the
study. For the present study, 100 respondents were selected at
random. All the 100 respondents were the customers of 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 of the universe and the conclusions are
drawn on that basis for the entire universe.
A convenience sampling technique was used to collect data
from the respondents.
METHOD OF DATA COLLECTION

To know the response, the researcher used questionnaire
method. It has been designed as a primary research
instrument.
Questionnaires were distributed to respondents and they were
asked to answer the questions given in the questionnaire.
The questionnaires were used as an instrumentation technique,
because it is an important method of data collection. The
success of the questionnaire method in collecting the
information depends largely on proper drafting. So in the
present study questions were arranged and interconnected
logically. The structured questionnaire will reduce both
interviewers and interpreters bias.
Further, coding and analysis was done for each question’s
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
the first time and thus they are original in character, they are
collected for a particular purpose.
A well-structured questionnaire was personally administrated to
the selected sample to collect the primary data.
SECONDARY DATA
Secondary data are those, which have already been collected
by some other persons for their purpose and published.
Secondary data are usually in the shape of finished products.
Two types of secondary data were collected for the preparation
of the project work:
Internal Data was generated from company’s brochures,

manuals and 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 the research viz,
1. Time Constraints:
The time stipulated for the project to be completed is less and
thus there are chances that some information might have been
left out, however due care is taken to include all the relevant
information needed.
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 4525 Offices 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 500
companies 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 200 leading
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 government-
owned commercial bank in India with about 4,500 branches
across 764 cities. It serves over 37 million customers. The
bank has been ranked 248th biggest bank in the world by
Bankers Almanac, London. 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, Lala Lalchand, Shri Kali
Prosanna Roy, Shri E.C. Jessawala, Shri Prabhu Dayal,
Bakshi Jaishi Ram, and Lala Dholan Dass. Lala Lajpat Rai
was actively associated with the management of the Bank
in its early years.
 1904: PNB established branches in Karachi and Peshawar.

 1940: PNB absorbed Bhagwan Dass Bank, a scheduled
bank located in Delhi circle.
 1947: Partition of India and Pakistan at Independence.
PNB lost its premises in Lahore, but continued to operate
in Pakistan.
 1951: PNB acquired the 39 branches of Bharat Bank (est.

1942); Bharat Bank became Bharat Nidhi Ltd.
 1961: PNB acquired Universal Bank of India.
 1963: The Government of Burma nationalized PNB's
branch in Rangoon (Yangon).
 September 1965: After the Indo-Pak war the government
of Pakistan seized all the offices in Pakistan of Indian
banks, including PNB's head office, which may have
moved to Karachi. PNB also had one or more branches in
East Pakistan (Bangladesh).
 1960s: PNB amalgamated Indo Commercial Bank (est.
1933) in a rescue.
 1969: The Government of India (GOI) nationalized PNB
and 13 other major commercial banks, on July 19, 1969.
 1976 or 1978: PNB opened a branch in London.
 1986 The Reserve Bank of India required PNB to transfer
its London branch to State Bank of India after the branch
was involved in a fraud scandal.
 1986: PNB acquired Hindustan Commercial Bank (est.
1943) in a rescue. The acquisition added Hindustan's 142
branches to PNB's network.
 1993: PNB acquired New Bank of India, which the GOI
had nationalized in 1980.
 1998: PNB set up a representative office in Almaty,
Kazakhstan.
 2003: PNB took over Nedungadi Bank, the oldest private
sector bank in Kerala. Rao Bahadur T.M. Appu Nedungadi,
author of Kundalatha, one of the earliest novels in
Malayalam, had established the bank in 1899. It was
incorporated in 1913, and in 1965 had acquired selected
assets and deposits of the Coimbatore National Bank. At
the time of the merger with PNB, Nedungadi Bank's
shares had zero value, with the result that its
shareholders received no payment for their shares. PNB
also opened a representative office in London.
 2004: PNB established a branch in Kabul, Afghanistan.

PNB also opened a representative office in Shanghai. PNB
established an alliance with Everest Bank in Nepal that
permits migrants to transfer funds easily between India
and Everest Bank's 12 branches in Nepal.
 2005: PNB opened a representative office in Dubai.
 2007: PNB established PNBIL - Punjab National Bank
(International) - in the UK, with two offices, one in
London, and one in South Hall. Since then it has opened a
third branch in Leicester, and is planning a fourth in
Birmingham. Gatin Gupta became Chairmen of Punjab
National Bank.
 2008: PNB opened a branch in Hong Kong.
 2009: PNB opened a representative office in Oslo,
Norway.
ACHIEVEMENTS
 Punjab National Bank announced its Q1FY2010 results on

29 July 2009, delivering 62% y-o-y growth in net profits
to Rs832 crore (Rs512cr), substantially ahead of
expectations on account of large treasury gains, apart
from healthy operating performance.
 While the bank’s deposit growth was reasonably robust at
4.4% 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
treasury gains of Rs355 crore during the quarter in line
with industry trends, even as Fee income was also robust
at 45% y-o-y, on the back of strong balance sheet
growth.
 Operating expenses were higher than expected on

account of Rs150 crore of provisions for imminent wage
hikes.
 Gross and Net NPA ratios remained stable sequentially at
1.8% and 0.2%, with the bank not adopting the
guidelines of treating floating provisions as part of tier 2
capital instead of adjusting 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 worldwide 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). Net Safe
(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). Insta Alerts
(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 efficiency, profitability &

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
Focus aspects of Commercial Banking now are:
BANK’S BUSINESS
RAISING DEPOSITS
SERVICES
LOANS & MISC.
Core MIS & ATMs
POS
Banking (CBS) Intranet Terminals
Electronic andCard
Cash
dispenser
Banking Corporate
Any Docume
Manage
Network nt
ment
Branch
Banking Risk Manage
Resource
ment
CRM Manage Manage
ment ment
BANK’S BUSINESS
I.T Payment and Settlement Systems
Continu
ous
Central
Linked
Secured Counte
Settlem
Netting r
ent
Systems party
Payme
Real nt
Electroni Time Versus
c Gross Payme
Dealing Settlem nt
Deliver ent
Platform
y
Demat Versus s
eria- Payme
lisatio nts
n
Of
Securi
ties
CHANDIGARH
INFINET Leased Line Network
JAMMU
LUCKNOW
JAIPUR DELHI
KANPUR
BHOPAL CALCUTTA
AHMEDABAD
GUWAHATI
MUMBAI
PATNA
GOA NAGPUR
BHUBANESHWAR
PUNE
BANGALORE
HYDERABAD
RBI
KOCHI
CHENNAI IDRBT
HYDERABAD
4 X 2 Mbps
PRODUCT PROFILE
THIRUVANANTHAPURAM
2 X 2 Mbps
2 Mbps
CUG links
2 Mbps with 64 Kbps
Presently, it is the second largest bank of the country rendering
ISDN Backup
a wide variety of banking 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.
 NRI’S & TOURISTS

Currency exchange services are being provided by our 68

Exchange Bureau’s 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)

PNB’s 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 NRI’s.
 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 PNB’s 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
at the PNB branch nearest to their home.
 CUSTOMER CARE FACILITY

All the banking queries and problems are just a call away! PNB
presents 24 hr. customer care facility. Call at toll free no. at
1800180 2222 from MTNL/BSNL or 0124-2340000 from other
no’s.
 PNB GOLD COIN

PNB gives opportunity to dazzle the well wishers, patrons,
partners and acquaintances with the mystical charisma of
PNB’s 999.9 fineness pure 24-carat gold coins and to convey
the true value of treasured relationship. Enjoy guarantee of

purity & weight of hallmarked gold coins.
 ELECTRONIC CLEARING SERVICE (ECS) &

ELECTRONIC FUNDS TRANSFER (EFT)
Avail ECS for quick movement of funds in a paperless mode &
EFT to ensure an expeditious transfer of funds by using
electronic media.
 WEALTH MANAGEMENT SERVICE

PNB provides customized financial advisory services for
individuals that includes Mutual Funds, insurance, Retirement
Planning, Tax planning, & Debt Management to customers for
wealth Maximization.
 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 of
new/ old car, van or jeep, new bike at very attractive interest
rates with a convenient repayment period.
 LOAN AGAINST JEWELLERY

Loans against Gold & Jewellery for individuals/business
enterprises, both for business & personal needs.
 TRADERS LOAN
Maximize business turnover with PNB trader’s loan with
minimum paper 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
have the advantage of substantial savings on the interest
component. Insurance covers for home loan borrowers are
available.
 PERSONAL LOANS
A scheme to meet all types of personal needs, for permanent /
confirmed employees / Defence Personnel and Professionally
Qualified Doctors.
 CORPORATE LOANS
Corporate can expand & diversify with user friendly Corporate
Loans Products Working Capital, Term Loan, Bank Guarantee,
Letter of Credit & others.
 EDUCATIONAL LOAN
Avail “Sarvottam Shiksha & Vidyalakshyapurti” schemes for
studies In India & abroad and ensure a great career for child.
 PNB GRAMIN CHIKITSAK

Scheme for financing qualified medical practitioners for setting
up clinics in rural areas at concessional rate of interest.
 LOAN TO PENSIONERS
PNB values the traditions of India by giving special benefits to
the senior citizens.
 LOANS TO WOMEN
PNB’s “Mahila Sashaktikaran Abhiyaan” & “Mahila Samridhi
Yojana” give special benefits to women customers that help in
building their confidence & self-esteem.
 DEPOSITS
 PNB MET LIFE

Delighting depositors with life insurance by extending the
facility of insurance cover (death only) to all Saving Fund &
Current Account (Individuals) holders.
 PNB VIDYARTHI ACCOUNT

Empowering the young generation with a zero balance account
for students with overdraft facility.
 TOTAL FREEDOM SALARY ACCOUNT

Discover the freedom of flexibility with PNB’s Total Freedom
Account. A zero balance account for employees having salary
account in the bank, with overdraft facility.
 PNB TAX SAVER

PNB offers term deposit scheme to avail tax benefit under Sec
80(C)2 (xxi) of income Tax Act.
 PNBMITRA
PNB offers no frill saving account for financial inclusion.
How to Ensure Security??-A Framework

ORGANISATIONAL STRUCTURE
Mr. B.L. Meena

(Branch Manager)
Mr. Sanjay Kumar Mr. Mithilesh Kr. Karn

(Asst. Manager) (Business Facilator)
Mr. S.K. Mishra Mr. A.K. Srivastava

(Head Cashier) (Clerk)
INDUSTRY PROFILE
ORIGIN AND DEVELOPMENT OF INDUSTRY
Banking in India
Banking in India originated in the first decade of 18th century.

The General Bank of 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 the State Bank
of India being established as "The Bank of Bengal" in Calcutta
in June 1806. A couple of decades later, foreign banks like
Credit Lyonnais started their Calcutta operations in the 1850s.
At that point of time, Calcutta was the most active trading port,
mainly due to the trade of the British Empire, and due to which
banking activity took roots there and prospered. The first fully
Indian owned bank was the Allahabad Bank, which was
established in 1865.
By the 1900s, the market expanded with the establishment of
banks such as Punjab 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 India
formally took on the responsibility of regulating the Indian
banking sector from 1935. After India's independence in 1947,
the Reserve Bank was nationalized and 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 of India,
upon India's independence, was renamed the State Bank of
India. The presidency banks were like the central banks and
discharged most of the functions of central banks. They were
established under charters from the British East India
Company. The exchange banks, mostly owned by the
Europeans, concentrated on financing of foreign trade. Indian
joint stock banks were generally under capitalized and lacked
the experience and maturity to compete with the presidency
banks, and the exchange banks. There was potential for many
new banks as the economy was growing. Under these
circumstances, many Indians came forward to set up banks,
and many banks were set up at that time, and a number of
them set up around that time continued to survive and prosper

even now like Bank of India and Corporation 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 to facilitate the development of the Indian
economy. At the same time, it has emerged as a large
employer, and a debate has ensued about the possibility to
nationalize the banking industry. Indira Gandhi, the-then Prime
Minister of India expressed the intention of the GOI in the
annual conference of the All India Congress Meeting in a paper
entitled "Stray thoughts on Bank Nationalization." The paper
was received with positive enthusiasm. Thereafter, her move
was swift and sudden, and the GOI issued an ordinance and
nationalised the 14 largest commercial banks with effect from
the midnight of July 19, 1969. Jay prakash Narayan, a national
leader of India, described the step as a "masterstroke of
political sagacity." Within two weeks of the issue of the
ordinance, the Parliament passed 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 more control of credit delivery. With the second
dose of nationalization, the GOI controlled 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 of liberalization and gave licenses to a
small number of private banks, which came to 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 Bank and 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 strong

contribution 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
proposed relaxation in the norms for Foreign Direct
Investment, where all Foreign Investors in banks may be given
voting rights which could exceed the present cap of 10%, at
present it has gone up to 49% with some restrictions. The new
policy shook the Banking sector in India completely. Bankers,
till this time, 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-savvy methods 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 terms of supply, product range and reach. Even
though reach in rural India still remains a challenge for the
private sector and foreign banks. Even in terms of quality of
assets and capital adequacy, Indian banks are considered to
have clean, strong and transparent balance sheets-as
compared to other banks in comparable economies in its
region.
Indian economy is expected to be strong for long time-
especially in its services sector. The demand for banking
services-especially retail banking, home loans and investment
services are expected to be strong.
In March 2006, the Reserve Bank of India allowed Warburg
Pincus to increase its stake in Kotak Mahindra Bank (a private
sector bank) to 10%. This is the first time 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 sector banks (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 banks hold over 75 percent of total assets of the
banking industry, with the private and foreign banks holding

18.2% and 6.5% respectively.
FUTURE OF THE INDUSTRY

A healthy banking system is essential for any economy striving
to achieve good growth and yet remain stable in an
increasingly global business environment. The Indian banking
system, with one of the largest banking networks in the world,
has witnessed a series of reforms over the past few years like
the deregulation of interest rates, dilution of the government
stake in public sector Banks (PSBs), and the increased
participation of private sector banks. The growth of the retail
financial services sector has been a key development on the
market front. Indian banks (both public and private) have not
only been keen to tap the domestic market but also to compete
in the global market place. New foreign 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 two factors: The corporate sector has stepped
up its demand for credit to fund its expansion plans; there has
also been a growth in retail banking. However, even as the
opportunities increase, there are some issues and challenges
that Indian banks will have to contend with if they are to
emerge successful in the medium to long term. This report
discusses these issues and challenges -- both intrinsic and
external, such as:
Risk management and Basel II

The future of banking will undoubtedly rest on risk
management dynamics. Only those banks that have efficient
risk management system will survive in the market in the long
run. The effective management of credit risk is a critical
component of comprehensive risk management essential for
long-term success Of a banking institution.
Although capital serves the purpose of meeting unexpected
losses, capital is not a substitute for inadequate decontrol or
risk management systems. Coming years will witness banks
striving to create sound internal control or risk management
processes.
With the focus on regulation and risk management in the Basel

II framework gaining prominence, the post-Basel II era will
belong to the banks that manage their risks effectively. The
banks with proper risk management systems would not only
gain competitive advantage by way of lower regulatory capital
charge, but would also add value to the shareholders and other
stakeholders by properly pricing their services, adequate
provisioning and maintaining a robust financial structure.
‘The future belongs to bigger banks alone, as well as to those
which have minimized their risks considerably.’
Consolidation
Consolidation, which has been on the counter over the last year
or so, is likely to gather momentum in the coming years. Post
April 2009, when the restrictions on operations of foreign banks
will go, the banking landscape is expected to change
dramatically. Foreign banks, which currently account for 5% of
total deposits and 8% of total advances, are devising new
business models to capture the Indian market. Their full-
fledged 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 to future growth. This
view is underpinned by the following:
 Owing to greater scale and size, consolidation can help
save costs and improve operational efficiency.
 Banks will also have to explore different avenues for
raising capital to meet norms under Basel-II
 Owing to the diversified operations and credit profiles of
merging banks, consolidation is likely to serve as a risk-
mitigation exercises as much as a growth engine.
Though there is no confirmation yet, speculative signals arising
from the market point to the prospect of consolidation involving
banks such as Union Bank of India, Bank of India, Bank of
Baroda, Dena Bank, State Bank of Patiala, and Punjab and Sind
Bank. Further, the case for merger between stronger banks has
also gained ground — a clear deviation from the past when

only weak banks were thrust on stronger banks. There is a
case being made for mergers between banks with a distinct
geographical presence coming together to leverage their
respective strengths.
GLOBALIZATION/ OVERSEAS EXPANSION

Growing integration of economies and the markets around the
world is making global banking a reality. The surge in
globalization of finance has already begun to gain momentum
with the technological advancements which have effectively
overcome the national borders in the financial services
business. Widespread use of internet banking will widen
frontiers of global banking, and make marketing of financial
products and services on a global basis possible. In the coming
years globalization will spread further on account of the likely
opening up of financial services under WTO. India is one of the
104 signatories of Financial Services Agreement (FSA) of 1997.
This gives India’s financial sector including banks an
opportunity to expand their business on a quid pro quo basis.
As per Indian Banks' Association report ‘Banking Industry
Vision 2010’, there would be greater presence of international
players in Indian financial system and some 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 capital instruments holds great significance. Such
fund-raising, which includes preference shares, will, however,
not just substitute equity; it could have unintended
consequences on the strategies of banks and their profitability.
While the cost of raising monies through such instruments is
likely to be higher (close to 10 per cent), the consequent
higher leverage on equity funds is likely to result in expansion
of return on net worth. This is because the same amount of
capital supports a higher volume of business, generating higher
profits. Banks are likely to be able to raise long-term
preference shares at coupon rates between six per cent and
eight per cent. The positive impact on bank profitability could

thus be significant. Preference capital can be used as the
currency for acquisition. The advantage for public sector banks
is that they no longer need to bother about government stake
falling below 51 per cent. Banks such as Dena Bank, Oriental
Bank of Commerce 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 by contractual appointments, for a specified period
of time. The unions will merge into the shadows and bank
managements will turn effective. As a result there will be
swifter turnover of personnel in banks. But at the same time,
skilled personnel 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 of human
resources indicates the ability of banks to deliver value to
customers. Capital and technology are replicable but not the
human capital which needs to be 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
management must 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 than national media campaigns
The growth of the retail financial services sector has been a key
development on the market front. Indian banks (both public
and private) will not only be keen to tap the domestic market
but also to compete in the global market place. New foreign
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 and customer friendly institution providing
comprehensive financial and related services: integrating
frontiers of technology and serving various segment of
society especially the weaker section of the society: committed
to excellence in serving the public and also excelling in the
corporate values. Corporate excellence emanate from good
corporate governance exercised by adopting standard of
transparency, accountability, professionalism, social
responsiveness, and ethical business practices with this in
view, the has been making efforts for adopting the best
practices. The bank commitment towards corporate governance
is to bestow greater transparency and openness in the
management and to ensure best performance by staff atall the
levels to maximize the operational efficiency. Adopting the
corporate governance as a work 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, Punjab National Bank offers a wide variety of banking
services which include corporate and personal banking,
industrial finance, agricultural finance, financing of trade and
international banking. Among the clients of the Bank are Indian
conglomerates, medium and small industrial units, exporters,
non-resident Indians and multinational companies. The large
presence and vast resource base have helped the Bank to build
strong links with trade and industry.
Punjab National Bank is serving over 3.5 crore customers
through 4540 Offices including 421 extension counters - largest
amongst Nationalized Banks.
Punjab National Bank with 112 year tradition of sound and
prudent banking is one among 300 global companies and seven
Indian companies which are expected to emerge as challengers

to World’s leading blue chip companies. While among top 1000
world banks, “The Banker”, the leading magazine in London,
has placed PNB at the 248th position, the bank features at
1308th position among Forbe’s Global 2000 list of global giants
and fast growing companies.
At the same time, the bank has been conscious of its social
responsibilities by financing agriculture and allied activities and
small scale industries (SSI). Considering the importance of
small scale industries bank has established 31 specialised
branches to finance exclusively such industries. Strong
correspondent banking relationship which Punjab National Bank
maintains with over 200 leading international banks all over
the world enhances its capabilities to handle transactions
world-wide. Besides, bank has Rupee Drawing Arrangements
with 15 exchange companies in the Gulf and one in Singapore.
Bank is a member of the SWIFT and over 150 branches of the
bank are connected through its computer- based terminal at
Mumbai. With its state-of-art dealing rooms and well-trained
dealers, the bank offers efficient forex dealing operations in
India.
The bank has been focusing on expanding its operations
outside India and has identified some of the emerging
economies which offer large business potential. Bank has set
up representative offices at Almaty: Kazakhistan, Shanghai:
China and 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 efficient and speedy service, the Bank has
taken major initiative in the field of computerization. All the
Branches of the Bank have been computerized. The Bank has
also launched aggressively the concept of "Any Time, Any
Where Banking" through the introduction of Centralized
Banking Solution (CBS) and over 2409 offices have already
been brought under its ambit.
PNB also offers Internet Banking services in the country for
Corporate as well as individuals. Internet Banking services are
available through all Branches of the Bank networked under
CBS. Providing 24 hours, 365 days banking right from the PC of
the user, Internet Banking offers world class banking facilities
like anytime, anywhere access to account, complete details of

transactions, and statement of account, online information of
deposits, loans overdraft account etc. PNB has recently
introduced Online Payment Facility for railway reservation
through IRCTC Payment Gateway Project and Online Utility Bill
Payment Services which allows Internet Banking account
holders to pay their telephone, mobile, electricity, insurance
and other bills anytime from anywhere from their desktop.
Another step taken by PNB in meeting the changing aspirations
of its clientele is the launch of its Debit card, which is also an
ATM card. It enables the card holder to buy goods and services
at over 99270 merchant establishments across the country.
Besides, the card can be used to withdraw cash at more than
25000 ATMs, where the 'Maestro' logo is displayed, apart from
the PNB's over 1094 ATMs and tie up arrangements with other
Banks.
FUTURE PLANS OF THE ORGANIZATION

To provide excellent professional services and improve its
position as a leader in the field of finance and related service,
build and maintain a team of motivated and committed
workforce with high work ethos; uses latest technology aimed
at customer satisfaction and act as effective catalyst for socio-
economic development.
The bank is committed to its corporate mission to provide
excellent professional services and improve its position as
leader in the field of financial and related services, build,
maintain a team of motivation and committed workforce with
high work ethos, use latest technology, aimed at customers
and act as an effective catalyst of socio-economic
development. Punjab National Bank has focused quite a bit in
rural areas, which is actually needed for our country. Their
ATMs are given the facility of English, National Language Hindi
and the local language of the state. They also provide mobile
top-up facility.
FUNCTIONAL DEPARTMENTS OF THE ORGANIZATION

Executive cards of the organization. They are Executive

Director, General Manager (GM), Deputy General Managers
(DGM), assistant General Managers (AGM), Chief Managers
(CM), Managers and other officers are in the hierarchy at the
head office level functioning in various Departments. The Zonal
Manager and regional Managers head the Zonal Offices and
Regional Officers respectively who are assisted by other down
in the hierarchy. The Branch is headed by AGM\CM\ Senior
Managers\Managers depending upon the size of the Branch
activities and rendering of satisfactory customer service.
The bank has a very good system of delegating power to the
different functionaries in the hierarchy to facilitate speedy
decision- making process even up to the branch Level.
MARKET PROFILE OF THE ORGANIZATION

Today, PNB operates 4,070 branches and 443 service counters
across the country, consolidating its position as one of the top
nationalized banks of India. PNB has been ranked at395Th
position amongst the top 1000 global banks by the prestigious
international publication The Banker. Like other scheduled
banks in India, the PNB also comes under the guidance of the
Reserve Bank of India (RBI) and as a government
establishment, it has to follow directions of the government.
Two directives, one from the Reserve Bank of India and the
other from India’s Department of Official languages are key in
this context. In 1985, the Department of Official Languages
mandated that all electronic equipment used in ministries and
departments of the government and their attached and
subordinate offices would need to be bilingual. That is, they
should be able to handle both Hindi and English. By the year
2000, the Reserve Bank of India had mandated that banks
should have a clear IT plan that should be implemented: that
at least 7O percent of all branches should be computerized.
With technology emerging as a key driver of business growth,
the bank has taken a number of IT initiatives to provide its
large clientele spread all across the country with the best of
technology while retaining the all- essential human warmth. Its
core banking system (CBS) already acts as a single data bank,
a backbone to 2,108 service outlets with internet banking
services spread over 28 states in the country. This deployment

has lent PNB the status of being the largest core banking
system in Asia.
The bank has 676 ATMs and also coordinates with the MITR
group of six banks with 2,200 ATMs. PNB is a member of
Institute Development and Research in Banking Technology
(IDRBT)-sponsored National Financial Switch (NFS) for mutual
ATM transactions. NFS at present has 18 banks and a pool of
6,197 ATMs. PNB has also pioneered the cheque truncation
system in India. Other software fuelling the systems are instant
fund transfer mechanism, data warehouse for decision control
and MIS and risk management software based on Basel II
guidelines set by the Bank for International Settlements. About
77 percent of its business is connected through leased lines,
ISDN and VPN. Other services such as mobile banking utility
bill payments, funds transfer, e-commerce and CRM through
mobile shall be introduced for the PNB branches including
setting up a network operating centre (NOC) to monitor the
CBS network.
RELATIVE PERFORMANCE
 Spreads: PNB has the best margins in the banking
sector.
 Return Parameters: On both the return parameters i.e.
return on average asset and return on average net worth,
PNB is close to the average of the peer set.
 Asset Quality: PNB’s asset quality as measured by the
net NPA ratio is on the higher side. It is just better than
the largest scheduled commercial bank i.e. SBI.
 Coverage Ratio: The provision coverage ratio third best
after HDFC Bank and OBC in our set of banks.
 Operating Efficiency: PNB’s cost to income ratio is
higher than the average of the peer set. However, we
believe that once the technological platforms are put in
place, the bank will be able to bridge the gap with the
numero uno in this regard.
TECHNOLOGY AND BANKING

The Quintessence Nature of Banking harmonizes closely with

Technology –
Tasks Common
to Both
Banki Information Technol

ng Storage ogy
Processing
Transmission
Balance sheet of the Organisation


Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Sources of funds
Owner's fund
Equity share capital 315.30 315.30 315.30 315.30 315.30
Share application money - - - - -
Preference share capital - - - - -
Reserves & surplus 15,915.63 12,824.59 10,467.35 9,826.31 8,758.68
Loan funds
Secured loans - - - - -
Unsecured loans 2,49,329.80 2,09,760.50 1,66,457.23 1,39,859.67 1,19,684.92
Total 2,65,560.74 2,22,900.39 1,77,239.88 1,50,001.28 1,28,758.90
Uses of funds
Fixed assets
Gross block 4,215.21 3,930.36 3,699.64 2,247.74 2,106.92
Less : revaluation reserve 1,491.99 1,513.74 1,535.70 293.85 302.38
Less : accumulated depreciation 1,701.74 1,533.25 1,384.12 1,237.92 1,076.69
Net block 1,021.48 883.37 779.83 715.98 727.84
Capital work-in-progress - - - - -
Investments 77,724.47 63,385.18 53,991.71 45,189.84 41,055.31
Net current assets

Current assets, loans & advances 6,320.07 5,020.20 4,380.84 3,980.80 3,762.79
Less : current liabilities & provisions 10,317.69 18,130.13 14,798.23 10,178.51 9,518.93
Total net current assets -3,997.62 -13,109.93 -10,417.38 -6,197.71 -5,756.14
Miscellaneous expenses not written - - - - -
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 1,01,340.25 1,11,212.07 1,04,055.87 74,700.48 58,739.31
Number of equity sharesoutstanding (Lacs) 3153.03 3153.03 3153.03 3153.03 3153.03
(Rs crore)
Quarterly results in brief

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

Other income 871.52 853.15 731.01 668.63 970.16
Stock adjustment - - - - -
Raw material - - - - -
Power and fuel - - - - -
Employee expenses 995.22 653.17 832.73 727.60 907.64
Excise - - - - -
Admin and selling expenses - - - - -
Research and development expenses - - - - -
Expenses capitalised - - - - -
Other expenses 396.70 446.92 409.20 429.67 354.99
Provisions made 534.13 621.86 281.88 215.97 301.79
Depreciation - - - - -
Taxation 495.75 575.57 524.99 463.37 435.50
Net profit / loss 1,068.29 1,135.03 1,011.31 926.96 832.05

Extra ordinary item - 81.45 - - -
Prior year adjustments - - - - -
Equity capital 315.30 315.30 315.30 315.30 315.30
Equity dividend rate - - - - -
Agg.of non-prom. shares (Lacs) 1330.61 1330.61 1330.61 1330.61 1330.61
Agg.of non promotoholding (%) 42.20 42.20 42.20 42.20 42.20
OPM (%) 67.86 69.29 72.32 74.60 69.96
GPM (%) 30.57 34.84 29.15 26.44 25.40
NPM (%) 15.57 17.57 16.22 15.26 13.47
CHAPTER-3
Discussion on training
Student’s work
Description of live experience
Student’s contribution
SWOT analysis of the organization
STUDENT’S WORK PROFILE (Role and Responsibility)

I worked as a management trainee in Punjab National Bank,
Ladania Branch (Bihar), 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 was my first step toward my dream and this was a
new thing for me, this was practical exposure because till now I
read only in books about banking ,first day when I reached
bank premises at 9:30 am ,I saw crowd of over 100 people
waiting outside the bank .
I usually worked under the supervision and direction of the
Business facilator, Mr. Mithilesh kr. karn. He gave me different
responsibilities as per the need, and at the end of the day I had
to report the full day’s work to him.
STUDENT’S CONTRIBUTION TO ORGANIZATION

As a Management Trainee I worked in all of teams, as a team
member my role was 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. Nature of No. of % of

No Account respondents respondents

1. Saving A/Cs 78 78%
2. Current A/Cs 9 9%
3. Fixed Deposits 4 4%
4. Loans 3 3%
5. Others 6 6%
Total 100 100%
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
Analysis: Above table shows that 78% respondents have

Saving A/Cs, and 9% have Current A/Cs and rest of the
respondents have 13% share of other A/Cs in total (which
includes fixed deposits, loans, and other products)
Interpretation: This means most of the respondents are

having Saving A/Cs which means the bank deposits are
enriching as Saving A/Cs share is most.
2. SATISFACTION OF RESPONDENTS WITH SERVICES
OFFERED BY PNB BRANCH.
Sl. Response No. of % of

No. respondents respondents
1. Satisfied 89 89%
2. Not 11 11%
satisfied
Tota 100 100%
l
Graph - 4.2
Classification based on satisfaction level of respondents
Not satisfied
Satisfied
0 10 20 30 40 50 60 70 80 90 100
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 of return from their deposits.
Customers are getting good service from the bank.
3. RATINGS OF THE SERVICES OFFERED BY THE
RESPONDENT’S LIFE INSURANCE COMPANY
Sl. Ratings No. of respondents % of

No. respondents
1. Excellent 5 5%
2. Very good 9 9%
3. Good 76 76%
4. Average 6 6%
5. Poor 4 4%
Total 100 100%
Graph - 4.3
Classification based on Rating of the service offered by
PNB branch
80
70
60
50
40
30
20
10
0
Excellent Very good Good Average Poor
Analysis: From this table it could be inferred that 76% of the

consumers have rated service offered as ‘good’, 9% of them
have rated them as ‘very good’, and 05% of them have rated
as excellent and average’ while only 4% have rated as ‘poor’
.
Interpretation: Service offered by the bank is improving day
by day. Returns consumers are getting are also attractive.
Majority of the customers rates good, very good and excellent
because of the customer service offered by the bank. Banks
are providing a good service to the customers due to increased
competition in the market. This may be the reason for more
satisfaction
4. TABLE SHOWING MOTIVE BEHIND THE SELECTING

PNB
Sl. No. Attribute Score Rank

1. Brand Name 56 1
2. Customer 30 2
service
3. Interest 12 3
4. Others 2 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 prefer ‘satisfaction’, and then ‘returns on investment’.
Interpretation: This purely shows that people are now looking

forward for better customer service in addition to the brand
name in which they are investing and the
returns they are getting.
5. CONSUMERS WILLINGNESS TO RECOMMEND THEIR

LIFE INSURANCE COMPANY TO OTHERS
Sl. Responses No. of % of

No. respondents respondents
1. Recommended 92 92%
2. Not 8 8%
recommended
Total 100 100%
Graph - 4.5
Classification based on the willingness to recommend
PNB branch services to other banks
100
90
80
70
60
50
40
30
20
10
0
Recommended
Not recommended
Analysis: From this table it can be noted that the majority of

consumers (92%) would like to recommend their bank services
to others and only 8% of consumers would not like to
recommend it to others.
Interpretation: Since the competition has increased in the

field of benefits and service of banking. So customers are
getting good service, so that they are willing to recommend
their bank services to others.
6. CONSUMERS WILLINGNESS TO SHIFT THEIR A/Cs

TO OTHER BANKS
Sl. No. Responses No. of % of

respondents respondents
1. Shift 9 9%
2. Doesn’t shift 91 91%
Total 100 100%
Graph - 6.6
Classification based on the willingness of respondents to
shift their A/Cs to other banks
Shift
Doesn’t shift
Analysis: From this table it can be noted that the majority of

consumers (92%) doesn’t like to shift their A/Cs to other
banks.
Interpretation: The reason can be increasing customer

satisfaction and quality services offered by the bank.
CHAPTER-5
Observations
Suggestions
Recommendations
OBSERVATIONS
It has been observed that to put a new organization into a
running position is much more difficult than to handle a already
working organization, manager’s task is difficult in a banking
industry he is the person who is completely liable for the
working of branch. To put a right person at a right job is not an

easy task for the 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 such as 1200 accounts in 2 days and distribute
micro loan of around 3 crores rupees to 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 of new type of banking revolution which can change
the life of villagers which depends 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 at different rates, depending on the consumer’s
characteristics. Hence I PNB should try to bring their new
product and services to the attention of potential early

adopters.
 Due to the intense competition in the financial market,

PNB should adopt better strategies to attract more
customers.
 Return on investment company reputation and premium
outflow are most preferred attributes that are expected by
the respondents. Hence greater focus should be given to
these attributes.
 PNB should adopt effective promotional strategies to
increase the awareness level among the consumers.
 PNB should ask for their consumer feedback to know
whether the consumers are really satisfied or dissatisfied
with the service and product of the bank. If they are
dissatisfied, then the reasons for dissatisfaction should be
found out and should be corrected in future.
 The PNB brand name has earned a lot of goodwill and
enjoys high brand equity. As there is intense competition,
PNB should work hard to maintain its position and offer
better service and products to consumers.
 The bank should try to increase the Brand image through
performance and service then, only the customers will be
satisfied.
 Majority of the people find banking important in their life,
so PNB should employ the strategies to convert the want
in to need which will enrich their business.
RECOMMENDATIONS
With the changing banking system, this branch has also to
adapt the new ways of banking such as:
 Shifting new and young staff to this branch

 Give them good incentives so that they stay there for
longer time period as per 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 per transaction time also.
 Local people should be appointed to handle the
customers.
CHAPTER-6
SUMMARY
SUMMARY OF LEARNING EXPERIENCE

While working in Punjab National Bank’s Branch of Ladania
(Madhubani) Bihar, I got in-depth knowledge about role of I.T
in Banking industry. I recognize that there is a lot more to
discover and 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 bank’s branch, it was difficult to handle minimum
500- 700 person’s per day with the queries like :
 What’s the procedure to open an account?

 What’s the procedure to get an ATM card?
 What’s the procedure to get a pass book?
 What’s 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
Business today
Questionnaire
Name:
Address:
Contact No.:
1. Which type of account you prefer in the bank?
(a) Saving A/C

(b) Current A/C
(c) Fixed deposits
(d) Loans
(e) Other’s
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)Doesn’t shift

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11

Chapter-1 Introduction of the study

Chapter-2 Introduction of the organization

Chapter-3 Discussion on training

Chapter-5 Observation, Suggestion & Recommendation

Chapter-7 Webliography & Questionnaire

Introduction of the study

Overview of the study

INTRODUCTION OF THE STUDY

A broader definition of a bank is any financial institution that

The following are the Scheduled Banks in India (Public

 State Bank of India

The following are the Scheduled Banks in India (Private

 ING Vysya Bank Ltd

The following are the Scheduled Foreign Banks in India:

 Deutsche Bank A.G.

industry conducts business. The overall wireless technology

ROLE OF INFORMATION TECHNOLOGY IN BANKING

The role of information technology (IT) in the banking industry.

OVERVIEW OF THE STUDY

has made tremendous impact in banking. ‘Anywhere

NEED FOR THE STUDY

OBJECTIVES OF THE STUDY

SCOPE OF THE STUDY

products or services they are offering are really satisfying the

1. The Perception of Employees towards the Implementation

METHODOLOGY OF THE STUDY

they find, thus the name convenience. Example includes

METHOD OF DATA COLLECTION

objective and exhaustive search for and study of facts relevant

Internal Data was generated from company’s brochures,

External Data, on the other hand, was generated from

LIMITATIONS OF THE STUDY

Although the study was carried out with extreme enthusiasm

4. It was difficult to find respondents as they were busy in their

INTRODUCTION OF THE ORGANISATION

Overview of the organization

OVERVIEW OF THE ORGANISATION

Punjab National Bank of India, the first Indian bank started

HISTORY OF THE BANK

Punjab National Bank (PNB) was registered on May 19, 1894

 1895: PNB commenced its operations in Lahore. PNB has

 1904: PNB established branches in Karachi and Peshawar.

 1951: PNB acquired the 39 branches of Bharat Bank (est.

 2004: PNB established a branch in Kabul, Afghanistan.

 Punjab National Bank announced its Q1FY2010 results on

 Operating expenses were higher than expected on

VISION AND MISSION

 To evolve and position the bank as a world class,

 To provide excellent professional services and improve its

VALUES AND ETHICS

 Bonding and Integrity

 Compliance with rules and regulations

IMPACT OF I.T. IN BANKING INDUSTRY

1). Technology has opened up new markets, new products,

2). Information Technology has also provided banking industry

3). The IT revolution has set the stage for unprecedented

4). It is information technology which enables banks in

5). IT has been providing solutions to banks to take care of

and wide area networks and connecting them to the Internet.

(1). Net Banking

(2). Credit Card Online