Dr. Suhasini Parashar (Head, Deptt. Of Business Administration)

Anuja BBA (B&I) 5th Semester Enrollment No: 0051491807




This is to certify that project titled ‘Customer satisfaction at PNB ’ is prepared by Anuja is being Submitted for the partial fulfillment of the Master’s degree in Business Administration Programme at Maharaja Surajmal Institute, Guru Gobind Singh Indraprastha University, Delhi. He has successfully completed the project under my constant guidance and support.

Signature of the Project Guide (Dr, Suhasini Parashar) Anuja BBA 5th sem.

Summer training is a very important part of an MBA curriculum. It provides an optimistic iconography for ‘Future’ existence through which students are able to see the real industrial environment which gives an opportunity to relate theory with practice. I undertook two months training programme at Punjab National Bank (Nangloi) and worked on the project “Customer Satisfaction at PNB “. This report is the training. knowledge acquired by me during this period of

FEATURE OF THIS REPORT: Several features of this report are designed to make it particularly easy for professionals and students to understand the customer’s perception about the financial products and services offered by the bank.

STRUCTURE: An empirical field approach complementing the text is followed

EMPIRICAL APPROACH: This report presents highly technical subject matter without complex formulas by using a balance of text and figures. The

approximately 20 figures accompanying the text provide a visual and intuitive opportunity for understanding the material. . HIGHLIGHTED POINTS: Important points are highlighted at appropriate places to stress their importance. APPENDIXES: The appendixes are intended to provide quick reference material or a review of materials needed to understand the concepts discussed in this report.

Anuja . They provided us with the required amount of freedom to exercise our skill under their able guidance. Pramod Kumar Bhatia (Customer Care Officer) and Mr. I required. At the outset. without which the Project would have been incomplete. This Project would not have completed without the direct or indirect help and guidance of such luminaries in Punjab National bank. HARISH SAIGAL (BRANCH MANAGER) throughout their critical evaluation and suggestion at every stage of the Project. Suhasini Parashar (Project Guide. I would be failing in my duties if I forget to mention the name of Dr. They provided us with the necessary resources and an environment conducive for healthy learning and training. this report could never have reached its present form.ACKNOWLEDGEMENT A Project usually falls short of its expectations unless guided by the right person at the right time. msi) for her unconditional support during the course of the project. I would like to extend my thanks to my college ‘MAHARAJA SURAJMAL INSTITUTE’ for the facilities availed to me in terms of library work. I would like to take this opportunity to gratefully acknowledge the very kind and patient guidance and encouragement I have received from our Project Guide Mr. Last but not least I would like to thank all the respondents for giving their precious time and relevant information and experience.


the Indian Banks Association (IBA) and top 20 banks like IDBI. The banker of all banks. has been well defined under three separate heads with one page dedicated to each bank. In fact. Government took major step in the 1969 to put the banking sector into systems and it nationalized 14 private banks in the mentioned year. It is no longer confined to only metropolitans or cosmopolitans in India.The banking section will navigate through all the aspects of the Banking System in India. Indian banking system has reached even to the remote corners of the country.1 HISTORY OF BANKING IN INDIA Without a sound and effective banking system in India it cannot have a healthy economy. HSBC. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. ABN AMRO. The most striking is its extensive reach. The last but not the least explains about the scheduled and unscheduled banks in India. The description along with a list of scheduled commercial banks are given on this page 1. This has been elaborated in Nationalization Banks in India. Reserve Bank of India (RBI). etc. However. It will discuss upon the matters with the birth of the banking concept in the country to new players adding their names in the industry in coming few years. For the past three decades India's banking system has several outstanding achievements to its credit. Section 42 (6) (a) of RBI Act 1934 lays down the condition of scheduled commercial banks. the past has been well explained under three different heads namely: • • • History of Banking in India Nationalization of Banks in India Scheduled Commercial Banks in India The first deals with the history part since the dawn of banking system in India. ICICI. in the introduction part of the entire banking cosmos.1. This is one of the main reasons of India's growth process. The government's regular policy for Indian bank since 1969 has paid rich dividends .

There were approximately 1100 banks. mostly Europeans shareholders. Reserve Bank of India came in 1935. Bank of India. an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Money has become the order of the day. To streamline the functioning and activities of commercial banks. was established in 1786. was set up in 1894 with headquarters at Lahore. Next came Bank of Hindustan and Bengal Bank.With the nationalization of 14 major private banks of India. Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. Gone are days when the most efficient bank transferred money from one branch to other in two days. the Government of India came up . They are as mentioned below: • • • Early phase from 1786 to 1969 of Indian Banks Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms. I prefix the scenario as Phase I. Phase I The General Bank of India was set up in the year 1786. Bank of Baroda. The East India Company established Bank of Bengal (1809). and Bank of Mysore were set up. Punjab National Bank Ltd. The first bank in India. Phase II and Phase III. though conservative. In 1865 Allahabad Bank was established and first time exclusively by Indians. the journey of Indian Banking System can be segregated into three distinct phases. Not long ago. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks. Canara Bank. Central Bank of India. Indian Bank. mostly small. Between 1906 and 1913. From 1786 till today. To make this write-up more explanatory. Now it is simple as instant messaging or dials a pizza. Today. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. he has a choice. New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991.

with The Banking Companies Act. 23 of 1965). Indira Gandhi. During those day’s public has lesser confidence in the banks. Creation of credit guarantee corporation. Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th July. it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. This step brought 80% of the banking segment in India under Government ownership. Nationalization of 14 major banks. the branches of the public sector bank India rose to approximately 800% in deposits and advances took . The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country: • • • • • • • • 1949: 1955: 1959: 1961: 1969: 1971: 1975: 1980: crore. Nationalization of seven banks with deposits over 200 After the nationalization of banks. Nationalization of SBI subsidiaries. Enactment of Banking Regulation Act. In 1955. It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country. 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. As an aftermath deposit mobilisation was slow. Insurance cover extended to deposits. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Moreover. funds were largely given to traders. major process of nationalization was carried out. Phase II Government took major steps in this Indian Banking Sector Reform after independence. It was the effort of the then Prime Minister of India. Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. Nationalization of State Bank of India. Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with seven more banks. 1969. Creation of regional rural banks. Mrs. 14 major commercial banks in the country were nationalized.

1. and banks and their customers have limited foreign exchange exposure. The financial system of India has shown a great deal of resilience. Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions. Efforts are being put to give a satisfactory service to customers.918 branches. The entire system became more convenient and swift. As on 30th June. 1934. RBI in turn includes only those banks in this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act. 1999. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. . Time is given more importance than money.a huge jump by 11. nationalized banks (19). The country is flooded with foreign banks and their ATM stations.2 SCHEDULED COMMERCIAL BANKS IN INDIA The commercial banking structure in India consists of: • • Scheduled Commercial Banks in India Unscheduled Banks in India Scheduled Banks in India constitute those banks which have been included in the Second Schedule of Reserve Bank of India (RBI) Act. the foreign reserves are high.000%. private sector banks (32).1. foreign banks (45). In 1991. Phase III this phase has introduced many more products and facilities in the banking sector in its reforms measure. This is all due to a flexible exchange rate regime. The scheduled commercial banks in India comprise of State bank of India and its associates (8). the capital account is not yet fully convertible. a committee was set up by his name which worked for the liberalisation of banking practices. Phone banking and net banking is introduced. under the chairmanship of M Narasimham. there were 300 scheduled banks in India having a total network of 64.

1959 (38 of 1959). 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 . "Scheduled banks in India" means the State Bank of India constituted under the State Bank of India Act. 1934 (2 of 1934). but does not include a co-operative bank". a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act. "Non-scheduled bank in India" means a banking company as defined in clause (c) of section 5 of the Banking Regulation Act. a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act. or any other bank being a bank included in the Second Schedule to the Reserve Bank of India banks and regional rural banks. 1980 (40 of 1980). or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act. 1949 (10 of 1949). 1955 (23 of 1955). 1970 (5 of 1970). which is not a scheduled bank".

The Chase Manhattan Bank Ltd. Dresdner Bank AG. Deutsche Bank A.1.3 BANKING SERVICES IN INDIA . ANZ Gridlays Bank Plc. Bank of America NT & SA Bank of Tokyo Ltd.G. 1. Banquc Nationale de Paris Barclays Bank Plc Citi Bank N.C.• 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. Hongkong and Shanghai Banking Corporation Standard Chartered Bank.

• • • PLASTIC MONEY .Bank Term Deposits Account can be opened by individuals / partnership firms / Private and Public Limited Companies / HUFs/ Specified Associates / Societies / Trusts. The Indian banking industry is passing through a phase of customers market. The advent of bank account online has saved both the cost of operation for banks as well as the time taken in opening an account. etc. Bank Account Online . Bank Term Deposits Account . The bank accounts are as follows: • Bank Savings Account . This section of banking deals with the latest discovery in the banking instruments along with the polished version of their old systems. the major banks in the public and private sector has faciliated their customer to open bank account online. etc. banks are also adding services to their customers. There are different types of bank account in Indian banking sector.Bank Current Account can be opened by individuals / partnership firms / Private and Public Limited Companies / HUFs / Specified Associates / Societies / Trusts.With years. Bank account online is registered through a PC with an internet connection. BANK ACCOUNT The most common and first service of the banking sector. The past days are witness to an hour wait before withdrawing cash from accounts or a cheque from north of the country being cleared in one month in the south.Bank Savings Account can be opened for eligible person / persons and certain organizations / agencies (as advised by Reserve Bank of India (RBI) from time to time) Bank Current Account . With stiff competition and advancement of technology. the services provided by banks have become more easy and convenient. The customers have more choices in choosing their banks.With the advancement of technology. A competition has been established within the banks operating in India.

A number of banks in India are encouraging people to use credit card. The RBI has also liberalised the interest rates . Now people are moving to township outside the city. 00. Credit card in India became popular with the introduction of foreign banks in the country. Loan against shares is very easy to get because liquid guarantee is involved in it. Home loan is the latest craze in the banking sector with the development of the infrastructure. The following loans are given by almost all the banks in the country: • • • • • Personal Loan Car Loan or Auto Loan Loan against Shares Home Loan Education Loan or Student Loan In Personal Loan. SBI. Credit card however became more popular with use of magnetic strip in 1970. It is one of the fast moving financial products of banks. Car loan / auto loan are sanctioned to the extent of 85% upon the ex-showroom price of the car with some simple paper works and a small amount of processing fee. HDFC. ICICI.000 depending upon the profile of person applying for the loan. retail stores and other businesses issue these.000 to 10. which can be used more than once to borrow money or buy products and services on credit. More number of townships is coming up to meet the demand of 'house for all'. Basically banks. HSBC are some of the leading banks which deals in Personal Loan. The concept of credit card was used in 1950 with the launch of charge cards in USA by Diners Club and American Express. LOANS Banks in India with the way of development have become easy to apply in loan market.Credit cards in India are gaining ground. Almost all the banks have jumped into the market of car loan which is also sometimes termed as auto loan. one can get a sanctioned loan amount between Rs 25. Credit cards are financial instruments.

1. The educational loan. It has been only a couple of years that banks have jumped into the money transfer businesses in India. MONEY TRANSFER Beside lending and depositing money. in 2004. The international money transfer market grew 9.3% from 2003 to 2004 i. Banker's Cheques. Economists say that the market of money transfer will further grow at a cumulative 12. This is a type of Telegraphic Transfer or Tele Cash Orders. from US$213 bn. Students with certain academic brilliance. studying at recognised colleges/universities in India and abroad are generally given education loan / student loan so as to meet the expenses on tuition fee/ maintenance cost/books and other equipment.1% average growth rate through 2009. Money Orders or other such instruments for transferring the money. Almost all banks are dealing in home loan. to US$233 bn. rather to be termed as student loan. is a good banking product for the mass.2 FUTURE OF BANKING IN INDIA . Banks generally issue Demand Drafts. banks also carry money from one corner of the globe to another. This act of banks is known as transfer of money. HSBC are leading. HDFC. Again SBI. ICICI.of home loan in order to match the repayment capability of even middle class people. This activity is termed as remittance business.e.

Geography will no longer be an inhibitor. The Indian banking system has witnessed a series of reforms in the past. reflecting a number of underlying developments.A healthy banking system is essential for any economy striving to achieve good growth and yet remain stable in an increasingly global business environment. With the growing competition and convergence of services. This paper aims to foresee major future banking trends. banking will (and to a great extent already has) become a process of choice and convenience. This trend has created new competitive threats as well as new opportunities. Some of these initiatives were deregulation of interest rates. At the same time. I see a growing trend towards the importance of relationship managers. It has also undergone rapid changes. 1.2. This is already becoming a reality with new-age banks such as YES Bank. customers of related similar institutions or those of the competitors) but also on the effectiveness in retaining the existing base.1 OVERVIEW If one were to say that the future of banking in India is bright. Hence. and increased participation of private sector banks. The future of banking would be in terms of integration. and others too adopting a single-PIN. guidelines being issued for risk . 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 macroenvironment and systemic risks. like deregulation of interest rates. Technology will prove to be the differentiator in the short-term but the dynamic environment will soon lead to its saturation and what will ultimately be the key to success will be a better relationship management. dilution of government stake in PSBs. 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. Since 1991. The success (or failure) of any bank would depend not only on tapping the untapped customer base (from other departments of the same bank. India has witness to a sea change in the way banking is done in the past more than two decades. Given the competitive market. based on these past and current movements in the market. it would be a gross understatement. the customers (you and I) stand only to benefit more to say the least. dilution of the government stake in public sector banks (PSBs).

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. 1.2.2 RISK MANAGEMENT

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.’



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 (Kazakhistan), Shanghai (China) and in London and a full fledged Branch in Kabul (Afghanistan). Punjab National Bank with 4497 offices and the largest nationalized bank is 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 world wide. PNB India has Rupee Drawing Arrangements with 15 exchange companies in UAE and 1 in Singapore.

2.1.1 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

Appu Nedungadi. 1951: PNB acquired the 39 branches of Bharat Bank (est. 1940: PNB absorbed Bhagwan Dass Bank. which may have moved to Karachi.• • • • • • • • • • • • • • • established in 1881 in Faizabad. 1969.) PNB's founders included several leaders of the Swadeshi movement such as Dyal Singh Majithia and Lala HarKishen Lal. September 1965: After the Indo-Pak war the government of Pakistan seized all the offices in Pakistan of Indian banks. 2003: PNB took over Nedungadi Bank. Nedungadi Bank's shares had zero value. with the result that its shareholders received no payment for their shares. It was incorporated in 1913. 1933) in a rescue.M. 1986: PNB acquired Hindustan Commercial Bank (est. At the time of the merger with PNB.[1] Lala Lalchand. 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. Lala Lajpat Rai was actively associated with the management of the Bank in its early years. 1960s: PNB amalgamated Indo Commercial Bank (est. Shri Prabhu Dayal. PNB lost its premises in Lahore. 1904: PNB established branches in Karachi and Peshawar. one of the earliest novels in Malayalam. 1961: PNB acquired Universal Bank of India. PNB also had one or more branches in East Pakistan (Bangladesh). Shri E. Bakshi Jaishi Ram. and Lala Dholan Dass. 1963: The Government of Burma nationalized PNB's branch in Rangoon (Yangon). Bharat Bank became Bharat Nidhi Ltd. The acquisition added Hindustan's 142 branches to PNB's network. 1943) in a rescue. had established the bank in 1899. but continued to operate in Pakistan. 1947: Partition of India and Pakistan at Independence.C. . 1976 or 1978: PNB opened a branch in London. 1993: PNB acquired New Bank of India. 1998: PNB set up a representative office in Almaty. but failed in 1958. Rao Bahadur T. including PNB's head office. Shri Kali Prosanna Roy. Kazakhstan. a scheduled bank located in Delhi circle. Jessawala. author of Kundalatha. 1942). on July 19. and in 1965 had acquired selected assets and deposits of the Coimbatore National Bank. which the GOI had nationalized in 1980. the oldest private sector bank in Kerala. 1969: The Government of India (GOI) nationalized PNB and 13 other major commercial banks.

PNB also opened a representative office in Shanghai. with two offices. • 2004: PNB established a branch in Kabul.PNB also opened a representative office in London. substantially ahead of expectations on account of large treasury gains. unlike the peers its growth in advances also remained strong at 38% y-o-y. 2008: PNB opened a branch in Hong Kong. delivering 62% y-o-y growth in net profits to Rs832 crore (Rs512cr).5% y-o-y. 2007: PNB established PNBIL . on the back of strong balance sheet growth.Punjab National Bank (International) . even as Fee income was also robust at 45% y-o-y. While the bank’s deposit growth was reasonably robust at 4. 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. 2.2 ACHIEVEMENTS • Punjab National Bank announced its Q1FY2010 results on 29 July 2009. driven by strong treasury gains of Rs355 crore during the quarter in line with industry trends. Gatin Gupta became Chairmen of Punjab National Bank. and is planning a fourth in Birmingham. Afghanistan. one in London. Since then it has opened a third branch in Leicester. the bank posted a healthy growth in Net Interest Income (NII) of 29% y-o-y. • • • • 2005: PNB opened a representative office in Dubai. Norway.1. and one in South Hall. apart from healthy operating performance. • • • .in the UK. 2009: PNB opened a representative office in Oslo.4% sequentially and 26. Other Income surged 113% y-o-y. In spite of being at the forefront of PLR cuts.

• Build and maintain a team of motivated workforce with high work ethos. cost effective and customer friendly institution providing comprehensive financial and related services. 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. • 2.2%.2 VISION AND MISSION Vision • To evolve and position the bank as a world class. . progressive. Gross and Net NPA ratios remained stable sequentially at 1.8% and 0. • Commited 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. • Integrating frontiers of technology and serving various segments of society especially weaker section.• Operating expenses were higher than expected on account of Rs150 crore of provisions for imminent wage hikes.

3 VALUES AND ETHICS • Bonding and Integrity • Ethical conduct • Periodic disclosure • Confidentiality and fair dealing • Compliance with rules and regulations 2. PNB Mitra SF Account Current Account . Anupam Account.Total Freedom Salary Account. Multi Benefit Deposit .PNB Vaibhav.Spectrum Fixed Deposit Scheme. Mahabachat Schemes. PNB Smart Roamer Fixed Deposit Schemes . PNB Vidyarthi SF Account.4 PRODUCTS AND SERVICES Savings Fund Account .• Use latest technology aimed at customer satisfaction and act as an effective catalyst for socio economic development. PNB Prudent Sweep. 2. PNB Gaurav.

Ranked as 323rd biggest bank in the world by Bankers Almanac (January 2006). FICCI's Rural Development Award for Excellence in Rural Development – 2005 2.Mahila Udyam Nidhi Scheme.Gold Card scheme for exporters.6 ORGANIZATIONAL STRUCTURE . PNB Pragati Udhami. PNB Farmers Welfare Trust Corporate Banking . Included in the top 1000 banks in the world according to The Banker. PNB Vikas Udhami Apart from these.5 AWARDS AND DISTINCTIONS • • • • • • Ranked among top 50 companies by the leading financial daily. senior citizens schemes. Credit Cards Social Banking . and the PNB also offers locker facilities. London.Flexible Housing Loan. Golden Peacock Award for Excellence in Corporate Governance 2005 by Institute of Directors. EXIM finance Business Sector . Car Finance.PNB Karigar credit card. PPF schemes and various E-services. PNB Kushal Udhami. 2.C Nielson Survey.Scheme Credit Schemes . Earned 9th place among India's Most Trusted top 50 service brands in Economic Times. Economic Times. London. Personal Loan. Krishi Card.A.


SWOT ANALYSIS Strength Weakness Opportunities Threats Let’s analyze SWOT in order to know as to where the company stands 2.7 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. .


Customer satisfaction levels can be measured using survey techniques and questionnaires DEFINITIONS: Definition 1: Customer satisfaction is equivalent to making sure that product and service performance meets customer expectations. . Products and services which are customer focused and hence provide high levels of value for money. Definition 2: Customer satisfaction is the perception of the customer that the outcome of a business transaction is equal to or greater than his/her expectation. Definition 3: Customer satisfaction occurs when acquisition of products and/or services provides a minimum negative departure from expectations when compared with other acquisitions. Gaining high levels of customer satisfaction is very important to a business because satisfaction customers are most likely to be loyal and to make repeat orders and to use a wide range of services offered by a business There are many factors which lead in high levels of customer satisfaction including.Customer satisfaction refers to the extent to which customers are happy with the products and services provided by a business.

2 BENEFITS OF CUSTOMER SATISFACTION The importance of customer satisfaction and support is increasingly becoming a vital business issue as organization realize the benefits of Customer Relationship Management (CRM) for providing effective customer service. Customer expectations have two types –  Expressed  Implied . 3. it is important to develop a clear understanding of what exactly the customer wants.What is clear about customer satisfaction is that customers are most likely to appreciate the goods and services that they buy if they are made to feel special. need to keep informed about the latest customer satisfaction techniques for running a valuable customer service function. What Do Customers Want? Before we begin to create tools to measure the level of satisfaction. We need to know what our customers expect from the products and services we provide. From small customer service departments to large call centers. the importance of developing a valued relationship with customers using CRM is essential to support customer and long-term business growth. Professionals working within customerfocused business or those running call centers or help desks. This occurs when they feel that the products and services that they buy have been specially produced for them or for people like them.

Implied Customer Expectations are not written or spoken but are the ones the customer would ‘expect’ the supplier to meet nevertheless. For example. when he/she wants it. However failing short is certain to create dissatisfaction Major Attributes of customer satisfaction in banking industry can be summarized as: . The customer is always right. product specifications and delivery requirements.3 WHAT CONSTITUTES SATISFACTION? We cannot create customer satisfaction just by meeting customer’s requirements fully because these have to be met in any case. Supplier’s job is to provide the customer what he/she wants. 3. a customer would expect the service representative who calls on him to be knowledgeable and competent to solve a problem on the spot. Supplier’s performance against these requirements is most of the items directly measurable. There are many reasons why customer expectations are likely to change overtime. Process improvements. improved quality of service provided by competitors are just a few examples. advent of new technology. Customer satisfaction is customer’s perception that a supplier has met or exceeded their expectations.Expressed Customer Expectations are those requirements that are written down n the contract and agreed upon by both parties for example. changes in customer’s priorities.

accessibility and attitude. The purpose of the exercise is to identify priorities for improvements. we can choose a method that is most effective in measuring the customer’s perceptions. We must develop a method or combination of methods that helps to continually improve service. Product quality  Premium Outflow  Return on Investment  Services  Responsiveness and ability to resolve complaints and reject reports.  Overall communication. WHAT ARE THE TOOLS? Customer expectations can be identified using various methods such as:  Periodic contract reviews  Market research  Telephonic interviews  Personal visits  Warranty records  Informal discussions  Satisfaction surveys Depending upon the customer base and available resources. .

4 CUSTOMER SATISFACTION SURVEYS Formal survey has emerged as by far the best method of periodically the customer satisfaction.  Priorities for improvement . where do we stand vis-à-vis other suppliers.3. This includes:  Defining Objectives of the Survey  Design Survey approach  Develop questionnaires and forms  Administer Survey (Email. The basic purpose is to find out what we are doing right or wrong. The survey are not marketing tools but an information—gaining tool. Enough homework needs to be before embarking on the actual survey. Telephone or Post)  Method of compiling data and analyzing the findings  Format of the report to present the findings There is no point in asking irrelevant questions on a customer satisfaction questionnaire. How we can serve the customer better? A customer satisfaction measurement survey should at least identify the following objectives:  Importance to customers (Customers priorities)  Customer’s perception of supplier’s performance  Your performance relative to customer’s priorities. Where is the scope for improvement.

we deal various personnel at various levels in the customer’s organization—the buyer. For repeated surveys. . surveying a number of respondents for each customer gives a complete perspective of customer satisfaction. 1 to 10. receiving inspector. This gives a better indication of relative importance of each parameter towards overall customer satisfaction and makes it easier for suppliers to prioritize their action plans by comparing the performance rating (scores) with importance rating (weighing). It may be necessary to device a different questionnaire for each of them. you could provide the rating that was previously accorded by the customer. again on a rating scale of say.Survey forms should be easy to fill out with minimum amount of time and efforts on customer’s part. They should be designed to actively encourage the customer to complete the questions. finance and purchase person etc. for each requirement. Respondents must be provided a way to express the importance they attach to various survey parameters. This works like a reference point for the customer. This can be achieved by incorporating objective type questions where customer has to “rate” on scale of say 1 to 10. user. Space should always be provided for the customers own opinions this enables them to state any additional requirements or report any shortcomings that are not covered by the objective questions. Normally. Yet they must provide accurate data should also be sufficiently reliable for management decision making. Respondents should be asked to give a weighting factor.


realization of the difference between the desired and the current situation that serves as a trigger for entire process.1. The process can be depicted as follows: Need recognition. attitudes and intentions rather that on actually measuring the satisfaction level with the service.  Consumption(utilization of the procured option)  Post purchase alternative re-evaluation. habits.  Search for information.1 CONSUMER RESEARCH IN DIFFERENT DISCIPLINES A considerable body of literature exists on consumption. Most of the consumer research focused on adopter categories.1 CONSUMER SATISFACTION PROCESS The paramount goal of marketing is to understand the customer and to influence buying behaviour. 4.  Pre purchase alternative evaluation.  Divestment(disposal of the unconsumed product and it’s remnants) .4. consumer behaviour and consumer decision making process.

Citizens' Charter concept was considered as a base instrument to fill this need and accordingly this document was prepared. We intend to bring it out in many Regional Languages in subsequent years. However. all our customers are requested to keep us informed of their experiences about the various services rendered by the Bank and feel free to comment on this Code.4. We wish to acknowledge the initiative taken by the Ministry of Finance. This Code for customers not only explains our commitment and responsibilities along with the redressed methods but also specifies the obligation on the part of customers for healthy practices in Customer-Banker relationships. A need was felt by us at Punjab National Bank that in order to become more customers friendly the Bank should come out with Charter of its services for the customers. etc. to evaluate improve and widen the range of service to customer. This is not a legal document creating rights and obligations. The Code has been prepared to promote fair banking practices and to give information in respect of various activities relating to customer service. Customer Meets. .2 WAYS FOR MAINTAINING RELATIONS WITH THE CUTOMERS ADOPTED BY PNB The ability of the banking industry to achieve the socio-economic objectives and in the process bringing more and more customers into its fold will ultimately depend on the satisfaction of the customers. Government of India and Ministry of Administrative Reforms and Public Grievances for encouraging us to bring out this Code. This document was made in consultation with the users and highlights our Bank's commitments towards the customer satisfaction. thus ensuring accountability and responsibility amongst its officials and staff. We maintain constant consultations with our clientele through various Seminars. We have a strong belief that a satisfied customer is the foremost factor in developing our business.

 Accord immediate credit in respect of outstation and local cheques upto a specified limit subject to certain conditions.  Pay interest for delayed credit of outstation cheques. as advised by RBI from time to time.e. as advised by Reserve Bank of India (RBI) from time to time. .COMMON PRACTICES FOLLOWED BY PNB BRANCHES  Displaybusiness hours.  Provide separate 'Enquiry' or 'May I help you' counter at large branches. Pay Orders.  Attend to all customers present in the banking hall at the close of business hours.  Display Time-Norms for various banking transactions. individual hirers).  Provide details of various deposit schemes/services of the Bank.  Display address of Regional/Zonal and Central Offices as well as Nodal Officer dealing with customer grievances/complaints.  Provide complaint/suggestion box in the branch premises.  Issue Demand Drafts.  Render courteous services. account opened in individual capacity) and all safe deposit locker hirers (i.  Display interest rates for various deposit schemes from time to time.e. etc.  Offer nomination facility to all deposit accounts (i.  Notify change in interest rates on advances.


5.3 SCOPE OF THE STUDY . the earlier the product or service is introduced ahead of competition.  This study will also help the companies to understand the experience and expectations of the existing customers. how a consumer selects. The market is more aware and realistic about investment and returns from financial products. Hence the study is very important.2 NEED FOR THE STUDY  The deeper the company understands of consumer’s needs and satisfaction. according to the consumer’s need. 5. This study will help banks to understand.  This study will help companies to customize the service and product. organizes and interprets the Quality of service and product offered by banks. the greater the expected contribution margin.This Study will help us to understand the consumer’s satisfaction about banking services and products. In this background this study tries to analyze the customer satisfaction towards banking services in general and PNB in particular.

It also help banks to know whether the existing products or services the are offering are really satisfying the customers needs. The study will be able to reveal the preferences.  To produce an executive service report to upgrade service characteristics.4 OBJECTIVE OF THE STUDY  To have an insight into the attitudes and behaviors of customers.This study is limited to the consumers with in New Delhi city.  To understand consumer’s preferences.5 REASERCH METHODOLOGY .  To access the degree of satisfaction of the consumers 5.  To find out the differences among perceived service and expected service. satisfaction of the customers regarding the banking services. 5. needs.

A descriptive study tries to discover answers to the questions who. In for-profit. descriptive investigations have a broad appeal to the administrator and policy analyst for planning. In this context. often by creating a profile of a group of problems. or they may involve relating the interaction of two or more variables. cost. where. how. The researcher attempts to describe or define a subject. does not explain why an event has occurred or why the variables interact the way they 5. and suppliers already have significant data to conduct descriptive studies using internal information. or events. and evaluating. what.6 SAMPLE METHOD . effectiveness. Descriptive studies may or may not have the potential for drawing powerful inferences. customers. however. monitoring. and. efficiency. when. A descriptive study. how questions address issues such as quantity. 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). do. Organizations that maintain databases of their employees. not-for-profit and government organizations. people. and adequacy. This descriptive study is popular in business research because of its versatility across disciplines. sometimes. Yet many firms that have such data files do not mine them regularly for the decision-making insight they might provide.

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. This is the least reliable design but normally the cheapest and easiest to conduct . information is collected only from a representative part of the universe and the conclusions are drawn on that basis for the entire universe. . In sampling technique. A convenience sampling technique was used to collect data from the respondents.6. 100 respondents were selected at random. All the 100 respondents were the customers of different branches of PNB.In this method Researcher have the freedom to choose whomever they find.Convenience sampling method is used for the survey of this project. 5. It is a non-probability sample.1 SAMPLE SIZE Sample size denotes the number of elements selected for the study.7 SAMPLING METHOD A sample is a representative part of the population. For the present study. 5. thus the name convenience.

because it is an important method of data collection. . 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 has been designed as a primary research instrument. the researcher used questionnaire method. 5. It facilitates smooth sailing of various research operations to make the research as effective as possible. The questionnaires were used as an instrumentation technique. and relevant strategies can be developed based on the information gathered through research. suggestions and finally to the conclusion about the topic. So in the present study questions were arranged and interconnected logically. Questionnaires were distributed to respondents and they were asked to answer the questions given in the questionnaire. It is a conceptual structure with in which research is conducted. The success of the questionnaire method in collecting the information depends largely on proper drafting.8 METHOD OF DATA COLLECTION To know the response. Further.9 TYPES OF DATA Every decision poses unique needs for information.5. coding and analysis was done for each question’s response to reach into findings. The structured questionnaire will reduce both interviewers and interpreters bias.

research books. Secondary data are usually in the shape of finished products. was generated from magazines. which have already been collected by some other persons for their purpose and published. A well-structured questionnaire was personally administrated to the selected sample to collect the primary data. . they are collected for a particular purpose. manuals and annual reports External Data.PRIMARY DATA Primary data are those collected by the investigator himself for the first time and thus they are original in character. Two types of secondary data were collected for the preparation of the project work: Internal Data was generated from company’s brochures. SECONDARY DATA Secondary data are those. intranet and internet (websites). on the other hand.

and collection of data was very difficult. Therefore.5. Accuracy: It is difficult to know if all the respondents gave accurate information. 4. 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. some respondents tend to give misleading information. It was difficult to find respondents as they were busy in their schedule. which handicapped the research viz. the study had to be carried out based on the availability of respondents. however due care is taken to include all the relevant information needed. . 3. 1.10 LIMITATIONS OF THE STUDY Although the study was carried out with extreme enthusiasm and careful planning there are several limitations. 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.


2 SATISFACTION OF RESPONDENTS WITH SERVICES OFFERED BY PNB BRANCH . TABLE 6.6. 3. 2. No.SL.1 Classification based on nature of A/Cs Saving A/Cs Current A/Cs Fixed Deposits Loans Others Analysis: Above table shows that 78% respondents have Saving A/Cs. 5. 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. 1. and 9% have Current A/Cs and rest of the respondents have 13% share of other A/Cs in total (which includes fixed deposits. 4. Total NATURE OF ACCOUNTS Saving A/Cs Current A/Cs Fixed Deposits Loans Others NUMBER OF RESPONDENTS 78 9 4 3 6 100 PERCENTAGE OF RESPONDENTS 78% 9% 4% 3% 6% 100% Graph . loans.

Only 11% of consumers are not satisfied.6. TABLE 6. 1. Presently the bank offers varieties of services and the customers are getting a good rate of return from their deposits.SL. No. Interpretation: Most of the respondents are satisfied with the service offered by PNB.3 RATINGS OF THE SERVICES OFFERED BY THE RESPONDENT’S LIFE INSURANCE COMPANY .2 Classification based on satisfaction level of respondents 89 100 No. TOTAL RESPONSE Satisfied Not satisfied NUMBER OF RESPONDENTS 89 11 100 PERCENTAGE OF RESPONDENTS 89% 11% 100 % Graph . Customers are getting good service from the bank. 2. of respondents 50 11 0 Satisfied Not satisfied 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.

3 Classification based on Rating of the service offered by PNB branches 645 9 76 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’. This may be the reason for more satisfaction TABLE 6. very good and excellent because of the customer service offered by the bank.6. and 05% of them have rated as excellent and average’ while only 4% have rated as ‘poor’ . 5. No. Returns consumers are getting are also attractive. Interpretation: Service offered by the bank is improving day by day. Banks are providing a good service to the customers due to increased competition in the market. 1.NO ATTRIBUTE SCORE RANK .SL. Majority of the customers rates good.4 TABLE SHOWING MOTIVE BEHIND THE SELECTING PNB SL. 2. TOTAL RATINGS EXCELLENT VERY GOOD GOOD AVERAGE POOR NUMBER OF RESPONDENTS 05 09 76 06 04 100 PERCENTAGE OF RESPONDENTS 5% 9% 76% 6% 4% 100 % Graph . 3. 4. 9% of them have rated them as ‘very good’.

From this table we can infer that consumers give more importance for ‘Brand name’. 4. 3. and what are the important criteria or factors on which decision-making is done. and then ‘returns on investment’.5 CONSUMERS WILLINGNESS TO RECOMMEND THEIR LIFE INSURANCE COMPANY TO OTHERS . TABLE 6.6. of 30 respondents 20 10 0 Motives Brand name Customer service Interest Others 56 30 12 2 Analysis: This table show the strengths and weaknesses of the brand. 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.4 Motive behind the Selecting of PNB 60 50 40 No. Brand name Customer service Interest Others 56 30 12 2 1 2 3 4 Graph . 2. secondly they prefer ‘satisfaction’.1.

No.SL.5 Classification based on the willingness to recommend PNB branch services to other banks 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.6 CONSUMERS WILLINGNESS TO SHIFT THEIR A/Cs TO OTHER BANKS SL. So customers are getting good service. TOTAL RESPONSES Recommended Not recommended NUMBER OF RESPONDENTS 92 08 100 PERCENTAGE OF RESPONDENTS 92% 8% 100 % Graph . 1. Interpretation: Since the competition has increased in the field of benefits and service of banking. TABLE 6. 1. RESPONSES Shift NUMBER OF RESPONDENTS 8 PERCENTAGE OF RESPONDENTS 8% .6. No. 2. so that they are willing to recommend their bank services to others.

2. CHAPTER 7 . Doesn't shift Analysis: From this table it can be noted that the majority of consumers (92%) doesn’t Interpretation: The reason can be increasing customer satisfaction and quality services offered by the bank.6. TOTAL Doesn’t shift 92 100 92% 100 % Graph .6 Classification based on the willingness of respondents to shift their A/Cs to other banks Shift like to shift their A/Cs to other banks.


Hence I PNB should try to bring their new product and services to the attention of potential early adopters. If they are dissatisfied.With regard to banking products and services.  PNB should adopt effective promotional strategies to increase the awareness level among the consumers. As there is intense competition. . PNB should work hard to maintain its position and offer better service and products to consumers.  Return on investment company reputation and premium outflow are most preferred attributes that are expected by the respondents.  The PNB brand name has earned a lot of goodwill and enjoys high brand equity.  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.  Due to the intense competition in the financial market. PNB should adopt better strategies to attract more customers. depending on the consumer’s characteristics. Hence greater focus should be given to these attributes. consumers respond at different rates. then the reasons for dissatisfaction should be found out and should be corrected in future.

 Majority of the people find banking important in their life. The bank should try to increase the Brand image through performance and service then. so PNB should employ the strategies to convert the want in to need which will enrich their business. only the customers will be satisfied. CHAPTER 8 .


In short. HDFC) breathing down its neck. I am sure the bank will find my findings relevant and I sincerely hope it uses my suggestions enlisted.The project entitled “A STUDY TO UNDERSTAND THE CUSTOMER SATISFACTION AT PNB” has helped me in studying satisfaction about services and products offered to consumers. PNB is far behind SBI. private banks are in the fray each one trying to cover more market share than the other. Yet. . I would like to say that the very act of the concerned management at PNB in giving me the job of critically examining consumer satisfaction towards financial products and services of the company is a step in their continual mission of making all round improvements as a means of progress. which I hope will take them miles ahead of competition. PNB must also be alert what with Private Banks (ICICI. I am sure the bank has a very bright future to look forward to and will be a trailblazer in its own right. Since the opening up of the banking sector.

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