.

CHAPTER 1

INTRODUCTION

1
1.1BANKING IN INDIA

INTRODUCTION TO BANKING IN INDIA

The banking section will navigate through all the aspects of the Banking System in India. 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. The banker of all banks,
Reserve Bank of India (RBI), the Indian Banks Association (IBA) and top 20 banks like
IDBI, HSBC, ICICI, ABN AMRO, etc. has been well defined under three separate heads with
one page dedicated to each bank. However, in the introduction part of the entire banking
cosmos, 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. Government took major step in the 1969 to put the banking sector
into systems and it nationalized 14 private banks in the mentioned year. This has been
elaborated in Nationalization Banks in India. The last but not the least explains about the
scheduled and unscheduled banks in India. Section 42 (6) (a) of RBI Act 1934 lays down the
condition of scheduled commercial banks. The description along with a list of scheduled
commercial banks are given on this page
HISTORY OF BANKING IN INDIA
Without a sound and effective banking system in India it cannot have a healthy economy. 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. For the past
three decades India's banking system has several outstanding achievements to its credit. The
most striking is its extensive reach. It is no longer confined to only metropolitansor
cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners
of the country. 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
With the nationalization of 14 major private banks of India. Not long ago, an account holder
had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he

2
has a choice. Gone are days when the most efficient bank transferred money from one branch
to other in two days. Now it is simple as instant messaging or dials a pizza. Money has
become the order of the day. The first bank in India, though conservative, was established in
1786.From 1786 till today, the journey of Indian Banking System can be segregated into
three distinct phases. 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.
New phase of Indian Banking System with the advent of IndianFinancial& Banking Sector
Reforms after 1991.To make this write-up more explanatory, I prefix the scenario as Phase I,
Phase II and Phase III.
Phase I
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and
Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay
(1840) and Bank of Madras (1843) as independent units and called it Presidency Banks.
These three banks were amalgamated in 1920 and Imperial Bank of India was established
which started as private
Shareholders
Banks, mostly Europeans shareholders. In 1865 Allahabad Bank was established and first
time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters
at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda,
Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in
1935.During the first phase the growth was very slow and banks also
Experienced periodic failures between 1913 and 1948. There were approximately 1100
banks, mostly small. To streamline the functioning and activities of commercial banks, the
Government of India came up with The Banking Companies Act, 1949 which was later
changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23of 1965).
Reserve Bank of India was vested with extensive powers for the supervision of banking in
India as the Central Banking Authority. During those days public has lesser confidence in
the banks. As an aftermath deposit mobilisation was slow. Abreast of it the savings bank
Facility provided by the Postal department was comparatively safer. Moreover, funds were largely
given to traders.

3
Phase II
Government took major steps in this Indian Banking Sector Reform after independence. In
1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale
especially in rural and semi-urban areas. 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. Seven banks forming subsidiary of State Bank of India was nationalized in 1960
on 19th July, 1969, major process of nationalization was carried out. It was the effort of the
then Prime Minister of India, Mrs. Indara Gandhi. 14 major commercial banks in the country
were nationalized. Second phase of nationalization Indian Banking Sector Reform was
carried out in 1980 with seven more banks. This step brought 80% of the banking segment in
India under Government ownership. The following are the steps taken by the Government of
India to Regulate Banking Institutions in the Country:
1949: Enactment of Banking Regulation Act.

1955: Nationalization of State Bank of India.

1959: Nationalization of SBI subsidiaries.
1961: Insurance cover extended to deposits.
1969: Nationalization of 14 major banks.
1971: Creation of credit guarantee corporation.
1975: Creation of regional rural banks.
1980: Nationalization of seven banks with deposits over 200crore.

After the nationalization of banks, the branches of the public sector bank India rose to
approximately 800% in deposits and advances took huge jump by 11,000%.Banking in the
sunshine of Government ownership gave the public implicit faith and immense confidence
about the sustainability of these institutions.
Phase III
This phase has introduced many more products and facilities in the banking sector in its
reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up
By his name which worked for the liberalisation of banking practices. The country is flooded
with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service
to customers. Phone banking and net banking is introduced. The entire system became more
convenient and swift. Time is given more importance than money.The financial system of India

4
has shown a great deal of resilience. It is sheltered from any crisis triggered by any external
macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible
Exchange rate
Regime, the foreign reserves are high, the capital account is not yet fully convertible, and
banks and their customers have limited foreign exchange exposure.

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, 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. As on 30th June, 1999, there were 300 scheduled banks in India having a
total network of 64,918 branches. The scheduled commercial
banks in India comprise of State bank of India and its associates (8),nationalized banks (19),
foreign banks (45), private sector banks (32),co-operative banks and regional rural
banks."Scheduled banks in India" means the State Bank of India constituted under the State
Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India
(Subsidiary Banks) Act,1959 (38 of 1959), a corresponding new bank constituted under
section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5
of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank included in the Second
Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), but does not include a co-
operative bank"."Non-scheduled bank in India" means a banking company as defined
in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949), which is not a
scheduled bank".

The following are the Scheduled Banks in India (Public Sector):

Public Sector Banks (Nationalised banks):

1. State Bank of India (SBI)
2. State Bank of Bikaner & Jaipur
3.State Bank of Hyderabad

5
4.State Bank of Indore
5.State Bank of Mysore
6.State Bank of Patiala
7.State Bank of Saurashtra
8.State Bank of Travancore
9.Bank of India
10.Canara Bank
11.Central Bank of India
12.Corporation bank
13.Indian Bank
14.Indian overseas bank
15.Syndicate Bank
16.UCO Bank
17.Allahabad Bank
18.Andhra Bank
19.Bank of Baroda
20.Bank of Maharashtra
21.Dena Bank
22.Oriental Bank of Commerce
23.Punjab & Sind Bank
24.Union Bank of India
25.United Bank of India
26.Vijay a Bank
27. IDBI Bank

Private Sector Banks:

1. HDFC Bank
2. ICICI Bank
3.Federal Bank
4.ING Vysya Bank
1.Axis Bank (formerly UTI Bank)
5. Yes Bank
6. Bank of Rajasthan

6
7.Bharat Overseas Bank
8.Catholic Syrian Bank
9.Bassein Catholic Bank
10.City Union Bank
11.Development Credit Bank
12.Dhanalakshmi Bank
13.Ganesh Bank of Kurundwad
14.IndusInd Bank
15.Jammu & Kashmir Bank
16.Karnataka Bank Limited
17.KarurVysya Bank
18.Kotak Mahindra Bank
19.Lakshmi Vilas Bank
20.Nainital Bank
21.Ratnakar Bank
22.SBI Commercial and International Bank
23.South Indian Bank
24.Amazing Mercantile Bank
25.Punjab National Bank
26.Rupee Bank
27.Saraswat Bank
28.Tamilnad Mercantile Bank

Foreign Banks:
1. ABN AMRO
2. BNP Paribas
3.Citibank India
4. HSBC (Hongkong& Shanghai Banking Corporation)
5. JPMorgan Chase Bank
6.Bank of America
7.Standard Chartered Bank
8.Barclays Bank
9.Deutsche Bank
10.Royal Bank of Scotland

7
11.Abu Dhabi Commercial Bank Ltd
12.American Express Bank
13.Antwerp Diamond Bank
14.Arab Bangladesh Bank
15.Bank International Indonesia
16.Bank of Bahrain & Kuwait
17.Bank of Ceylon
18.Bank of Nova Scotia
19.Bank of Tokyo Mitsubishi UFJ
20.Calyon Bank
21.ChinaTrust Commercial Bank
22.Cho Hung Bank
23.DBS Bank
24.Krung Thai Bank
25.Mashreq Bank
26.Mizuho Corporate Bank
27.Oman International Bank
28.SocietyGnrale
29.State Bank of Mauritius
30.Scotia
31.Taib Bank

8
 1.2 COMPANY PROFILE

Date of Establishment 1895

Revenue INR 474 billion (US$ 8.7 billion)
Market Cap 354665.5960133 ( Rs. in Millions )
Corporate Address 7 , BhikaijiCama Place, , New Delhi-110607, New
Delhi
www.pnbindia.com

Public
Type
BSE: 532461
Traded as NSE: PNB
CNX Nifty Constituent

Founder
Lalalajpatrai

Business Operation Bank Public

Background Established in 1895 in Lahore, Punjab National
Bank is one of the oldest banks in India having a
virtual presence in every important centre of the
country. The bank has over 35 million customers
through 4540 offices including 421 extension
counters, out of which 2/3 of its branches in rural
and semi rural areas-the largest among
nationalized banks, which makes it enjoy one of
the highest peaks.

9
Company background and inception of the company

Punjab National Bank (PNB) is an Indian financial services company based in New Delhi,
India. Founded in 1895, the bank has over 6,300 branches and over 7,900 ATMs across 764
cities. It serves over 80 million customers.

Punjab National Bank is one of the Big Four banks of India, along with State Bank of India,
ICICI Bank and Bank of Baroda. It is the third largest bank in India in terms of asset size
(US$6.6 billion by the end of FY 2012-13). The bank has been ranked 248th biggest bank in
the world by the Bankers' Almanac.

PNB has a banking subsidiary in the UK, as well as branches in Hong Kong, Dubai and
Kabul. It has representative offices in Almaty (Kazakhstan), Dubai, Shanghai (China), Oslo
(Norway) and Sydney (Australia).

History

Punjab National Bank was registered on 19 May 1894 under the Indian Companies Act, with
its office in Anarkali Bazaar, Lahore. The founding board was drawn from different parts of
India professing different faiths and a varied back-ground with, however, the common
objective of providing country with a truly national bank which would further the economic
interest of the country.PNB's founders included several leaders of the Swadeshi movement
such as Dyal Singh Majithia and LalaHarkishanLal,

Lala Lalchand, Shri Kali Prosanna Roy, Shri E.C. Jessawala, ShriPrabhuDayal, BakshiJaishi
Ram, and LalaDholanDass.LalaLajpatRai was actively associated with the management of
the Bank in its early years. The board first met on 23 May 1894. Ironically, the PNB Website
now claims Lala LajpatRai to be the founding father, surpassing RaiMul Raj and Dyal Singh
Majithia. The bank opened for business on 12 April 1895 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, Commercial Bank,
was established in 1881 in Faizabad, but failed in 1958.)

10
PNB has had the privilege of maintaining accounts of national leaders such as Mahatma
Gandhi, JawaharLal Nehru, AllBahadurShastri, Indira Gandhi, as well as the account of the
famous JalianwalaBagh Committee.

Timeline

1900: PNB established its first branch outside Lahore in Rawalpindi. Branches in
Karachi and Peshawar followed.
1940: PNB absorbed BhagwanDass Bank, a scheduled bank located in Delhi Circle.
1947: at the Partition of India and the commencement of Pakistani independence,
PNB lost its premises in Lahore, but continued to operate in Pakistan. Partition forced
PNB to close 92 offices in West Pakistan, 33% of the total number, and which held
40% of the total deposits. PNB still maintained a few caretaker branches. On 31
March 1947, even before Partition, PNB had decided to leave Lahore and transfer its
registered office to India; it received permission from the Lahore High Court on 20
June 1947, at which time it established a new head office in New Delhi.
1951: PNB acquired the 39 branches of Bharat Bank (est. 1942); Bharat Bank became
Bharat Nidhi Ltd.
1960: PNB again shifted its head office, this time from Calcutta to Delhi.
1961: PNB acquired Universal Bank of India and amalgamated Indo Commercial
Bank (est. 1932 by S. N. N. SankaralingaIyer) in a rescue.
1963: The revolutionary government in Burma nationalized PNB's branch in Rangoon
(Yangon), which became People's Bank No. 7.[8]
September 1965: After the Indo-Pak war the government of Pakistan seized all the
offices in Pakistan of Indian banks. PNB also had one or more branches in East
Pakistan (Bangladesh).
1969: The Government of India (GOI) nationalized PNB and 13 other major
commercial banks, on 19 July 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.

11
 1998: PNB set up a representative office in Almaty, Kazakhstan.
2003: PNB took over Nedungadi Bank, the oldest private sector bank in Kerala. 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: The next year, PNB established a branch in Kabul, Afghanistan and a
representative office in Shanghai. PNB also 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. Currently, PNB owns 20% of Everest Bank.
2004: PNB opened a representative office in Dubai.
2006: Two years later, 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 more branches, this time in Leicester, Birmingham, Ilford,
Wembley, and Wolverhampton. PNB also opened a branch in Hong Kong.
January 2009: PNB established a representative office in Oslo, Norway. PNB hopes to
upgrade this to a branch in due course.

In 2010, PNB purchased a small minority stake in Kazakhstan-based JSC Dena Bank. Within
the year PNB increased its ownership and now PNB owns 84% of what has become JSC (SB)
PNB. The subsidiary has branches in Almaty, Astana, Kangandu, and Pavlodar. Dena Bank
was established on 20 October 1992 in Pavlodar.

Also, in January 2010, PNB established a subsidiary in Bhutan. PNB owns 51% of Druk
PNB Bank, which has branches in Thimpu, Phuentsholing, and Wangdue. Local investors
own the remaining shares. Then on 1 May, PNB opened its branch in Dubai's financial
centre.

September 2011: PNB opened a representative office in Sydney, Australia.

December 2012: PNB signed an agreement with US based life Insurance company
MetLife to acquire a 30% stake in MetLife's Indian affiliate MetLife India Limited.
The company would be renamed PNB MetLife India Limited and PNB would sell
MetLife's products in its branches.

12
List of CMDs of PNB since inception

S.NO. Names of chairman & managing director Period

s/shri

1 Sardar dyalsingh majithia 1895-1898

2 R.B. lalchand 1898-1905

3 Bhagatiswardass 1905-1910

4 R.B. lalchand 1911-1912

5 R.B. lala such daval 1912-1913

6 Bhagatiswardass 1913-1915

7 Dr.hiralal 1917-1920

8 Laladhanpatrai 1921-1931

9 Dr.maharajkrishnakapur 1931-1937

10 R.B. dewanbadri das 1938-1942

11 Lalayodh raj 1943-1953

12 Shriyans Prasad jain 1953-1954

13 Shanti Prasad jain 1954-1959

14 Ram nathgoenka 1960-1964

15 Kamalnayanbajaj 1964-1967

16 Somesh Chandra trikha 1968-1972

13
17 Prakashtandon 1972-1975

18 T.R. tuli 1975-1977

19 O.P. gupta 1977-1980

20 S.L. Chopra 1980-1981

21 S.L. Baluja 1981-1985

22 J.S.Varshneya 1985-1989

23 Rashid jilani 1990-2000

24 S.S. kohli 2000-2005

25 S.C. gupta 2005-2007

26 Dr. K.C. Chakrabarty 2007-2009

27 K.R. Kamath 2009-2014

28 Gauri Shankar Till date

Management Team for Punjab National Bank

Name Designation
Gauri Shankar Chairman & Managing Director
N S Vishwanathan Director
Mushtaq A Antulay Director
D K Singla Director
Tara Chand Jhalani Director
Dilip Kumar Saha Employee Director
AradhanaMisra Part Time Official Director
GautamPremnathKhandelwal Part Time Non Official Director

14
Anurag Jain Director
B BChaudhary Director
M N Gopinath Director
Sunil Gupta Director
B P Kanungo Director
Gauri Shankar Executive Director
K VeeraBrahmaji Executive Director
R S Sangapure Executive Director

Departments of the Organization

The bank has following organization
Finance
Personal Administration
Human Source
Sales & Marketing
Retailing Treasury Management
Information Technology

15
 Organisation structure

Head office

FGM offices (13) & (2) GM overseas

Circle offices (61)

Branches (6215)

VISION MISSION AND QUALITY POLICY

VISION

To be a leading global bank with pan India footprints and become a household brand in the
indo gang tic plains providing entire range of financial product and services under one roof

MISSION

Banking for unbanked.

QUALITY POLICY

To effectively meet customers requirements and endeavour to achieve total customer satisfaction.
To gain consistent faith and confidence of customers and potential customers regarding the quality of
services rendered.

16
 To pursue excellence through continuous improvement in all area and to distinguish
ourselves by the quality of our services.
To achieve operational efficiency by attaining better productivity and profitability.
To work and act in such a manner that all services rendered in due course of banking
lead to excellence and improved credibility and image of the bank.

PRODUCT AND SERVICES

Punjab National Bank (PNB) has the biggest client base among all the nationalized
banks in India. Punjab National Bank provides its members with a diverse range of
financial services and products:-

Savings Fund Account

Nomination facilities
Credit schemes

Punjab national bank corporate banking

Punjab National Bank offers the banking following personal services to its clients
Current Account
ATM / Debit Card
Fixed Deposit Schemes
Farmers

Punjab national bank corporate banking

Punjab National Bank provides the following corporate banking services:

Gold Card Scheme for Exporters

Loan against Future Lease Rentals

17
 Cash Management Services
EXIM finance

Punjab National Bank offers special schemes

Punjab National Bank offers special schemes for the following:

Traders
Professionals
Women
Salaried Staff
Students
Army Personnel / Ex-Servicemen Senior Citizens

Punjab National Bank provides the following savings fund

account products:

PNB Mitra SF Account

PNB Prudent Sweep
PNB Vidyarthi SF Account
Total Freedom Salary Account

Punjab National Bank financial services

Insurance business
Life insurance
General insurance
Mutual fund

Punjab National Bank provides the following mutual fund products:

Principal Growth Scheme

Principal Child Benefit Fund
Principal Balanced Fund

18
 Principal Global Opportunities Fund
Principal Income Fund
Principal Infrastructure & Service Sector Fund
Principal Income Fund Short Term Plan
Principal Tax Savings Fund
Principal Cash Management Fund
Principal Personal Tax Saver Fund
Principal Index Fund
l Monthly Income Plan
Principal Large Cap Fund
NSE market tracker
ASBA
Merchant banking
Wealth management services
Agricultural banking
PNB krishi
Farmers
Agricultural credit schemes
Central sector scheme
PNB farmers welfare trust

Subsidiaries of Punjab national bank

PNB Gilts
PNB Housing Finance
PNB Investment Services
PNB Insurance Broking
PNB Life Insurance Co.

Joint Ventures of Punjab National Bank

Principal PNB Asset Management Company
Principal Trustee Company

19
 Assets Care Enterprises

Punjab National Bank also circulates and promotes the mutual funds of UTI. Punjab
National Bank also offers services in the business sector.
Punjab National Bank offers the following services to the Non-Resident Indians:

NRI Accounts
Money Transfer
Investment Facilities for NRI

Business performance

During FY14 Punjab national bank maintain it no.1 position in domestic business, domestic
deposit, domestic advances, casa deposit and operating profit amongst nationalized bank. The
performance highlights the bank in terms of business and profit as shown below:-

Financial performance Rs. In crore

Parameters Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 CAGR (%)

Operating 5690 7325 9055 10614 10907 11384 14.88%

profit
Net profit 3091 3105 4433 4884 4748 3343 1.58%

Deposit 209760 249330 312899 379588 391560 451397 16.56%

Advance 154703 186601 242107 293775 308796 349269 17.69%

20
Total 364463 435931 555005 673366 700356 800666 17.05%
business

Infrastructure

The bank has 6,300 branches in India. It also had 5foreign branches 7,900 ATMs and providing
services to 8.9 crore esteemed customers. The area of operation of Punjab national bank is
national. Punjab national bank has branches in 34 states and union territories in India

Employees

As on 31 March 2013, the bank had 63,292 employees, out of which 11,594 were women
(18%). It also had 919 employees with disabilities on the same date (1.45%)The average age
of bank employees on the same date was 45.96 years. The bank reported business of INR
11.65 crores per employee and net profit of INR 8.06 lakhs per employee during the FY
2012-13The company incurred INR 5,751 crores towards employee benefit expenses during
the same financial year

Initiatives

The bank incurred INR 3.24 crores on CSR activities like medical camps, farmer trainings,
tree plantations, blood donation camps etc. during the F 2012-13

21
Shareholding Pattern - Punjab National Bank

Holder's Name No of Shares % Share Holding

Promoters 213168119 58.87%

Foreign Institutions 62887143 17.37%

Financial Institutions 51700636 14.28%

NBanksMutual Funds 18667560 5.16%

12557122 3.47%
General Public

Other Companies 2030405 0.56%

Others 918810 0.25%

CentralGovt 80339 0.02%

ForeignNRI 58783 0.02%

ForeignOcb 943 0%

Foreign Industries 66 0%

(A) Shareholding of Promoter and Promoter Group as a % of total no. of shares

(1) Indian
Central 1 213,168,119213,168,11958.87 58.87 - -
Government /
State
Government(s)
Sub Total 1 213,168,119213,168,11958.87 58.87 - -

22
(2) Foreign
Total 1 213,168,119213,168,11958.87 58.87 - -
shareholding
of Promoter
and Promoter
Group (A)

(B) Public Shareholding

(1) Institutions
Mutual Funds185 18,667,560 18,667,560 5.16 5.16 - -
/ UTI
Financial 22 555,680 555,680 0.15 0.15 - -
Institutions /
Banks
Central 2 80,339 80,339 0.02 0.02 - -
Government /
State
Government(s)
Insurance 94 51,144,956 51,144,956 14.13 14.13 - -
Companies
Foreign 191 62,884,916 62,884,916 17.37 17.37 - -
Institutional
Investors
Any Others1 2,227 2,227 - - - -
(Specify)
Foreign 2,227 2,227 - - - -
Financial
1
Institutions /
Banks
Sub Total 495 133,335,678133,335,67836.83 36.83 - -

(2)Non-
Institutions

23
Bodies 1,611 2,030,405 1,991,005 0.56 0.56 - -
Corporate
Individuals - - - - - -
Individual 12,017,946 10,509,355 3.32 3.32 - -
shareholders
holding
189,538
nominal share
capital up to
Rs. 1 lakh
Individual 539,176 539,176 0.15 0.15 - -
shareholders
holding
nominal share21
capital in
excess of Rs. 1
lakh
3,739 978,602 960,702 0.27 0.27 - -

Any Others
(Specify)
Non Resident 58,783 58,783 0.02 0.02 - -
786
Indians
Overseas 943 943 - - - -
Corporate 1
Bodies
Clearing 443,774 443,774 0.12 0.12 - -
280
Members
Hindu 196,631 181,531 0.05 0.05 - -
Undivided 2,626
Families
Foreign 66 66 - - - -
1
Nationals
Trusts 45 278,405 275,605 0.08 0.08 - -

24
 Sub Total 194,90915,566,129 14,000,238 4.30 4.30 - -
Total Public195,404148,901,807147,335,91641.13 41.13 - -
shareholding
(B)
Total (A)+(B) 195,405362,069,926360,504,035100.00 100.00 - -
(C) Shares held- - - - - - -
by Custodians
and against which
Depository
Receipts have
been issued-m
(1) - - - - - -
(2) - - - - - -
Sub Total - - - - - -
Total 195,405362,069,926360,504,035- 100.00 - -
(A)+(B)+(C)

Competitors information

Name Last Price Market Cap. Net Interest Net Profit Total Assets
(Rs. cr.) Income

SBI 2,405.45 179,584.42 136,350.80 10,891.17 1,792,234.60

Bank of
783.00 33,722.17 38,939.71 4,541.08 659,504.53
Baroda

885.45 32,059.48 43,223.25 3,342.57 550,419.92

PNB

Canara Bank 387.50 17,873.78 39,547.61 2,438.19 374,160.20

25
Bank of India 263.10 16,917.33 37,910.10 2,729.27 573,190.20

IDBI Bank 88.80 14,242.98 26,597.51 1,121.40 328,996.62

UCO Bank 95.80 9,720.91 18,229.92 1,510.54 239,124.75

Central Bank 67.75 9,149.23 24,427.55 -1,262.84 289,496.22

Syndicate
144.10 9,000.26 18,620.33 1,711.46 251,861.46
Bank

IOB 70.35 8,690.68 22,643.55 601.74 274,904.85

Oriental Bank 281.05 8,427.25 19,017.48 1,139.41 220,302.50

Indian Bank 156.45 7,272.55 15,249.21 1,158.95 187,326.71

Allahabad
115.80 6,306.58 18,746.68 1,172.02 220,434.28
Bank

Corporation Bk 368.30 6,170.57 17,958.57 561.72 222,048.47

Andhra Bank 82.50 4,864.32 14,297.32 435.58 146,298.95

Vijay a Bank 48.75 4,188.21 10,706.55 415.91 137,358.61

State B
593.65 4,155.55 8,168.56 731.69 90,876.97
Bikaner

Bank of Mah 47.95 4,023.46 11,956.66 385.97 136,320.05

Dena Bank 71.80 3,861.52 9,978.47 551.66 124,863.47

State BkTravan 585.00 3,466.33 9,706.55 304.34 105,285.42

United Bank 48.85 2,709.94 10,599.29 -1,213.45 125,104.94

26
State Bk
547.50 2,628.73 6,322.86 274.25 73,976.35
Mysore

Punjab & Sind 65.65 1,807.24 7,972.71 300.63 94,509.16

UTI - Gold 2,599.35 360.84 - - -

Awards and achievements

Awards

Punjab National Bank was ranked #717 in the Forbes Global 2000 in May 2013.

Punjab National Bank was ranked #717 in the Forbes Global 2000 in May 2013.

Punjab National Bank was ranked #26 in the Fortune India 500 ranking of 2011.

PNB was awarded the 'Best Public Sector Bank' by CNBC TV18 in 2012.
The bank was recognised as the 'most socially responsive bank' by Business
worldandPwC in 2012.
In 2011, it received Golden Peacock Award for "Excellence in Corporate Social
Responsibility"] and "National Training Award.
National Award for Excellence in SSI Lending- Ranked 2nd for four consecutive
years from 2002 to 2005
The Banker's Almanac - Ranked 3rd amongst banking sector in India and 323rd rank
in the world in 2006
The Banker, London- Ranked 386 amongst Top 1000 Global Banks in July 2005
AC Nielson Survey - 9th amongst Top 50 Most Trusted Services Brands in India
Golden Peacock Award- for excellence in corporate governance in 2005

27
ACHIEVEMENTS

Punjab National Bank announced its Q1FY2010 results on 29 J u l y

2009, delivering 62% y-o-y growth in net profits
t o Rs832 crore (Rs512cr), substantially ahead of expectations on account of large
treasury gains, apart from healthy operating performance.
While the banks deposit growth was reasonably robust
at4 . 4 % s e q u e n t i a l l y a n d 2 6 . 5 % y - o - y , u n l i k e t h e p e e r s
i t s growth in advances also remained strong at 38% y-o-y.

In spite of being at the forefront of PLR cuts, the bank posted 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.

G r o s s a n d N e t N P A r a t i o s r e m a i n e d s t a b l e s e q u e n t i a l l y a t 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.

GROWTH AND DEVELOPMENT OF PUNJABNATIONAL

BANK

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

28
 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 staffat all the levels to maximize the
operational efficiency. Adopting the corporate governance as a work ethos, the bank is
committed to enhancing the stakeholders value.

FUTURE PLANS OF PUNJAB NATIONALBANK

To provide excellent professional services and improve its positions 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 ethosuse 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

29
 1.3 INTRODUCTION TO TOPIC

TRAINING & DEVELOPMENT

Training and development is the field which is concerned with organizational activity
aimed at bettering the performance of individuals and groups in organizational settings. It has
been known by several names, including human resource development, and learning and
development.

Training and development (T&D) encompasses three main activities: training, education, and
development. Caravan, Costine, and Heraty, of the International Institute of Market Research and
Analytics note that these ideas are often considered to be synonymous. However, to practitioners,
they encompass three separate, although interrelated, activities:

Training: This activity is both focused upon, and evaluated against, the job that an
individual currently holds.
Education: This activity focuses upon the jobs that an individual may potentially hold
in the future, and is evaluated against those jobs.
Development: This activity focuses upon the activities that the organization
employing the individual, or that the individual is part of, may partake in the future,
and is almost impossible to evaluate.

MEANING

Training and development "it is an attempt to improve current and future employee
performance by increasing an employee's ability to perform through learning usually by
changing the employee's attitude or increasing his or her's skills and knowledge. The need for
training and Development is determined by the employee's performance deficiency.

Training and Development refer to the imparting of specific skills, abilities and
knowledge performance to an employee.

30
Typical Reasons for Employee Training and Development

Training and development can be initiated for a variety of reasons for an employee or group
of employees, e.g.

When a performance appraisal indicates performance improvement is needed

To "benchmark" the status of improvement so far in a performance improvement
effort
As part of an overall professional development program
As part of succession planning to help an employee be eligible for a planned change
in role in the organization
To "pilot", or test, the operation of a new performance management system.

Typical Topics of Employee Training

1. Communications: The increasing diversity of today's workforce brings a wide

variety of languages and customs.
2. Computer skills: Computer skills are becoming a necessity for conducting
administrative and office tasks.
3. Customer service: Increased competition in today's global marketplace makes it
critical that employees understand and meet the needs of customers.
4. Diversity: Diversity training usually includes explanation about how people have
different perspectives and views, and includes techniques to value diversity
5. Ethics: Today's society has increasing expectations about corporate social
responsibility. Also, today's diverse workforce brings a wide variety of values and
morals to the workplace.
6. Human relations: The increased stresses of today's workplace can include
misunderstandings and conflict. Training can people to get along in the workplace.
7. Quality initiatives: Initiatives such as Total Quality Management, Quality Circles,
benchmarking, etc., require basic training about quality concepts, guidelines and
standards for quality, etc.
8. Safety: Safety training is critical where working with heavy equipment , hazardous
chemicals, repetitive activities, etc., but can also be useful with practical advice for
avoiding assaults, etc.

31
IMPORTANCE OF TRAINING AND DEVELOPMENT

1. Leads to improved profitability and more positive attitudes towards profit orientation.
2. Improves the job knowledge and skills at all levels of the organization
3. Improves the morale of the workforce
4. Helps people identity with organization goals.
5. Helps create a better corporate image
6. Fosters authenticity between boss and subordinate
7. Aids in organizational development
8. Learns from the trainee
9. Helps prepare guidelines for work
10. Aids in understanding and carrying out organizational policies
11. Provides information for future needs in all areas of the organization
12. Organization gets more effective decision making and problem solving skills
13. Aids in development for promotion from within
14. Aids in developing leadership skills, motivation, loyalty, better attitudes and other
aspects that successful workers and managers usually display.
15. Aids in increasing productivity and quality of wok
16. Helps keep costs down in many areas
17. Develops a sense of responsibility to the organization for being competent and
knowledgeable
18. Improves labor management relations
19. Reduces outside consulting costs by utilizing competent internal consultation
20. Stimulates preventive management
21. Eliminates sub optimal behavior
22. Creates an appropriate climate for growth communication
23. Aids in improving organizational communication
24. Helps employees adjust to change
25. Aids in handling thereby helping to prevent stress and tension.

32
THE TRAINING PROCESS

(TRAINING PROCESS)

33
Organizations objectives and strategies-

Objectives are what organizations want to accomplishthe end results they want to
achievein a given time frame. In addition to being accomplished within a certain time
frame, objectives should be realistic (achievable) and be measurable, if possible. To increase
sales by 2 percent by the end of the year is an example of an objective an organization might
develop. You have probably set objectives for yourself that you want to achieve in a given
time frame.

The first step in training process in an organization is the assessment of its objectives and
strategies. It includes.....

1. What business are we in?

2. At what level of quality do we wish to provide this product or service?
3. Where do we want to be in the future?

Strategies are the means to the ends, or what a firms going to do to meet its objectives.
Successful strategies help organizations establish and maintain a competitive advantage that
competitors cannot imitate easily.

Firms often use multiple strategies to accomplish their objectives and capitalize on marketing
opportunities. For example, in addition to pursuing a low cost strategy (selling products
inexpensively).

NEEDS ASSESSMENT

Needs assessment diagnoses present problems and future challenges to be met through
Training and Development.

Need assessment occurs at two levels.

1. Group

2. Individual

Need assessment methods

For Group or Organizational analysis: Organizational goals and objectives, Personal/ skills
inventories, Organizational climate indices, Efficiency indices, MBO. Customer satisfaction,

34
etc. For individual analysis: Performance appraisal, Work sampling Interviews,
Questionnaires, attitude survey, Training Progress, Rating scales, etc.

TRAINING AND DEVELOPMENT OBJECTIVES

Defining training objectives in both qualitative and quantitative terms helps in evaluating and
monitoring the effectiveness of training. Involvement of top management is necessary in
order to integrate training objective with organizational objectives.

Employees will definitely learn best when objectives of the training program were clearly
stated to them, objective means the purpose and expected outcome of training activities.

1. To impart basic knowledge and skill to new entrants required for intelligent
performance of definite task in order to induct them without much loss of time.
2. To assist employees to function more effectively by exposure of latest concepts
information and techniques and development of skills required in specific fields
including production, purchase, marketing, logistics, information technology etc.
3. To broaden minds of supervisors. Sometimes, narrowness of outlook may arise in
supervisors because of specialization. In order to correct this narrowness they are
provided with opportunities and interchange of experience.
4. To build second line of competent employees and enable them to occupy more
responsible positions as situation emerge.
5. To prepare employees to undertake different jobs in order to enable redeployment and
maintain flexibility in workforce so that ever changing environment of market can be
met and downturns can be managed without loosing experienced employees.
6. To provide employees job satisfaction, training enables an employee to use their skill,
knowledge and ability to fullest extent and thus experience job satisfaction and gain
monetary benefits from enhanced productivity.
7. To improve knowledge, skills, efficiency of employees to obtain maximum individual
development.
8. To fulfil goals of organization by securing optimum co-operation and contribution
from the employees.

35
Training Evaluation

1. Evaluation of training effectiveness is the process of obtaining information or data on

the effectiveness of training program conducted and assessing the value of training in
the light of that information. Evaluation involves controlling and correcting the
training program.
2. Evaluation means appraisal or assessment. In terms of training it is a activity of
assessing the impact of the training as compared to the objectives that were set for
achievement through the program, evaluation is done by obtaining feedback from the
trainees, trainers and the line managers of the concerned departments. Perspectives of
colleagues can also be considered to obtain 360 degree evaluation.
3. Evaluation measures can be undertaken before the start of training, at the start of
training, during the training and at the end of training.
4. Training evaluation is the assessment of the total value of the training system, training
course or program in social as well as financial term. The term is also used in general
judgmental sense of the continuous monitoring of a program or of the training
function as the whole

TRAINING METHODS

Punjab national bank mainly used both on the job methods and off the job training methods in
bank. Both training methods may be grouped under the following heads:-

A. On-the-job Training Methods:

1. Coaching

2. Mentoring

3. Job Rotation

4. Job Instruction Technology

36
5. Apprenticeship

6. Understudy

B. Off-the-Job Training Methods:

1. Lectures and Conferences

2. Vestibule Training

3. Simulation Exercises

4. Sensitivity Training

5. Transactional Training

A. On-the-job training Methods:

Under these methods new or inexperienced employees learn through observing peers or
managers performing the job and trying to imitate their behaviour. These methods do not cost
much and are less disruptive as employees are always on the job, training is given on the
same machines and experience would be on already approved standards, and above all the
trainee is learning while earning. Some of the commonly used methods are:

1. Coaching:

Coaching is a one-to-one training. It helps in quickly identifying the weak areas and tries to
focus on them. It also offers the benefit of transferring theory learning to practice. The
biggest problem is that it perpetrates the existing practices and styles. In India most of the
scooter mechanics are trained only through this method.

2. Mentoring:

The focus in this training is on the development of attitude. It is used for managerial
employees. Mentoring is always done by a senior inside person. It is also one-to- one
interaction, like coaching.

37
3. Job Rotation:

It is the process of training employees by rotating them through a series of related jobs.
Rotation not only makes a person well acquainted with different jobs, but it also alleviates
boredom and allows to develop rapport with a number of people. Rotation must be logical.

4. Job Instructional Technique (JIT):

It is a Step by step (structured) on the job training method in which a suitable trainer (a)
prepares a trainee with an overview of the job, its purpose, and the results desired, (b)
demonstrates the task or the skill to the trainee, (c) allows the trainee to show the
demonstration on his or her own, and (d) follows up to provide feedback and help. The
trainees are presented the learning material in written or by learning machines through a
series called frames. This method is a valuable tool for all educators (teachers and trainers).
It helps us:

a. To deliver step-by-step instruction

b. To know when the learner has learned

c. To be due diligent (in many work-place environments)

5. Apprenticeship:

Apprenticeship is a system of training a new generation of practitioners of a skill. This

method of training is in vogue in those trades, crafts and technical fields in which a long
period is required for gaining proficiency. The trainees serve as apprentices to experts for
long periods. They have to work in direct association with and also under the direct
supervision of their masters.

The object of such training is to make the trainees all-round craftsmen. It is an expensive
method of training. Also, there is no guarantee that the trained worker will continue to work
in the same organization after securing training. The apprentices are paid remuneration
according the apprenticeship agreements.

38
6. Understudy:

In this method, a superior gives training to a subordinate as his understudy like an assistant to
a manager or director (in a film). The subordinate learns through experience and observation
by participating in handling day to day problems. Basic purpose is to prepare subordinate for
assuming the full responsibilities and duties.

B. Off-the-job Training Methods:

Off-the-job training methods are conducted in separate from the job environment, study
material is supplied, there is full concentration on learning rather than performing, and there
is freedom of expression. Important methods include:

1. Lectures and Conferences:

Lectures and conferences are the traditional and direct method of instruction. Every training
programme starts with lecture and conference. Its a verbal presentation for a large audience.
However, the lectures have to be motivating and creating interest among trainees. The
speaker must have considerable depth in the subject. In the colleges and universities, lectures
and seminars are the most common methods used for training.

2. Vestibule Training:

Vestibule Training is a term for near-the-job training, as it offers access to something new
(learning). In vestibule training, the workers are trained in a prototype environment on
specific jobs in a special part of the plant.

An attempt is made to create working condition similar to the actual workshop conditions.
After training workers in such condition, the trained workers may be put on similar jobs in
the actual workshop.

This enables the workers to secure training in the best methods to work and to get rid of
initial nervousness. During the Second World War II, this method was used to train a large
number of workers in a short period of time. It may also be used as a preliminary to on-the
job training. Duration ranges from few days to few weeks. It prevents trainees to commit
costly mistakes on the actual machines.

39
3. Simulation Exercises:

Simulation is any artificial environment exactly similar to the actual situation. There are four
basic simulation techniques used for imparting training: management games, case study, role
playing, and in-basket training.

(a) Management Games:

Properly designed games help to ingrain thinking habits, analytical, logical and reasoning
capabilities, importance of team work, time management, to make decisions lacking complete
information, communication and leadership capabilities. Use of management games can
encourage novel, innovative mechanisms for coping with stress.

Management games orient a candidate with practical applicability of the subject. These
games help to appreciate management concepts in a practical way. Different games are used
for training general managers and the middle management and functional heads executive
Games and functional heads.

(b) Case Study:

Case studies are complex examples which give an insight into the context of a problem as
well as illustrating the main point. Case Studies are trainee centered activities based on topics
that demonstrate theoretical concepts in an applied setting.

A case study allows the application of theoretical concepts to be demonstrated, thus bridging
the gap between theory and practice, encourage active learning, provides an opportunity for
the development of key skills such as communication, group working and problem solving,
and increases the trainees enjoyment of the topic and hence their desire to learn.

(c) Role Playing:

Each trainee takes the role of a person affected by an issue and studies the impacts of the
issues on human life and/or the effects of human activities on the world around us from the
perspective of that person.

40
It emphasizes the real- world side of science and challenges students to deal with complex
problems with no single right answer and to use a variety of skills beyond those employed
in a typical research project.

In particular, role-playing presents the student a valuable opportunity to learn not just the
course content, but other perspectives on it. The steps involved in role playing include
defining objectives, choose context & roles, introducing the exercise, trainee
preparation/research, the role-play, concluding discussion, and assessment. Types of role play
may be multiple role play, single role play, role rotation, and spontaneous role play.

(d) In-basket training:

In-basket exercise, also known as in-tray training, consists of a set of business papers which
may include e-mail SMSs, reports, memos, and other items. Now the trainer is asked to
prioritise the decisions to be made immediately and the ones that can be delayed.

4. Sensitivity Training:

Sensitivity training is also known as laboratory or T-group training. This training is about
making people understand about themselves and others reasonably, which is done by
developing in them social sensitivity and behavioural flexibility. It is ability of an individual
to sense what others feel and think from their own point of view.

It reveals information about his or her own personal qualities, concerns, emotional issues, and
things that he or she has in common with other members of the group. It is the ability to
behave suitably in light of understanding.

A groups trainer refrains from acting as a group leader or lecturer, attempting instead to
clarify the group processes using incidents as examples to clarify general points or provide
feedback. The group action, overall, is the goal as well as the process.

Sensitivity training Program comprises three steps (see Figure 18.7)

41
5. Transactional Analysis:

It provides trainees with a realistic and useful method for analyzing and understanding the
behavior of others. In every social interaction, there is a motivation provided by one person
and a reaction to that motivation given by another person.

This motivation reaction relationship between two persons is known as a transaction.

Transactional analysis can be done by the ego (system of feelings accompanied by a related
set of behaviors states of an individual).

Impact of training & development on employees

Employee skill development

Save the cost of recruitment
Employees get motivated
More participation by employees
Employee satisfaction
Help to face competition
Reduces employee turnover rate
Help employees to learn new advanced technology

42
CHAPTER 2

Review of Literature

43
2.1 REVIEW OF LITERATURE

Training and Development play an vital role in every organization. Without training and
development cannot give their best on work field.

Martin Mulder in the year (2001) has done his research in the topic CUSTOMER
SATISFACTION WITH TRAINING PROGRAMS and he has contributed a model of
evaluation of customer satisfaction about training programs. The model is developed and
implemented for an association of training companies. The evaluation has been conducted by
an independent organization to enhance the trustworthiness of the evaluation results.

Shreya Sarkar-Barney in the year (2004)has done her research in the topic THE ROLE
OF NATIONAL CULTURE IN ENHANCING TRAINING EFFECTIVENESS: A
FRAMEWORK andhas evaluated the focus of global training has primarily been on
preparing employees to work effectively in other cultures, such as in expatriate training,
acculturation training, and training for technology transfer. One issue that has been ignored is
the implication of using training systems that are developed in a specific context and then
deployed globally.

D.A. Olaniyan and Lucas. B. Ojoin the year (2008) has done their research in the topic
STAFF TRAINING AND DEVELOPMENT: A VITAL TOOL FOR ORGANIZATIONAL
EFFECTIVENESS and has reviewed that this paper is based on staff training and
development. This paper is basically a conceptual paper. The author says that the need for
improved productivity has become universally accepted and that it depends on efficient and
effective trainingis not less apparent

David Pollitt in the year (2009) has done his research in the topic SOUTHERN COACHES
MANAGERS IN A BETTER WAY OF WORKING (Training and development help rail
company to improve organizational culture and performance) and has said that managers at
a UK train operator have become role models for their employees, who now have more
power to take direct responsibility and reach their full potential. The change has taken place
following a management-development program at train operator Southern, working with

44
coaching and training company Buonacorsi Consulting. The program has so far reached 300
managers, including the managing director Chris Burchell. Some 20Managers

Pilar Pinedain the year (2010)has done his research in this topic EVALUATION OF
TRAINING IN ORGANIZATIONS: A PROPOSAL FOR AN INTEGRATED MODEL and
the authors purpose of this paper is to present an evaluation model that has been successfully
applied in the Spanish context that integrates all training dimensions and effects, to act as a
global tool for organizations. This model analyses satisfaction, learning, pedagogical aspects,
transfer, impact and profitability of training and is therefore a global model. The author says
that training is a key strategy for human resources development and in achieving
organizational objectives. Organizations and public authorities invest large amounts of
resources in training, but rarely have the data to show the results of that investment.

Muhammad Zahid Iqbal et. alin the year (2011) has done their research in the topic AN
EMPIRICAL ANALYSIS OF THE RELATIONSHIP BETWEEN CHARACTERISTICS
AND FORMATIVE EVALUATION OF TRAINING Their analysis is about the
relationship between characteristics and formative evaluation of Training. This paper
attempted to signify the use of formative training evaluation. The authors have carried out a
study at three public-sector training institutions to empirically test the predicted relationship
between the training characteristics and formative training evaluate on under the Kirkpatrick
model (reaction and learning) .All training characteristics were found to have a positive
impact on reaction and learning except training contents.

45
 CHAPTER 3

RESEARCH METHODOLOGY

46
Research Methodology

One of the most important uses of research methodology is that it helps in identifying the
problem. Collecting analysing the required information data and providing an alternatives
solution to the problem.

3.1 OBJECTIVE OF THE STUDY

To study the training and development methods used in Punjab national bank and impact of these on
employees as well as bank performance.
To study the problems that takes place during the training and development sessions.

3.2 Data sources:

Research has done by primary and secondary data collection.

Primary data has been collected by interacting with employees of Punjab national
bank.
Secondary data can be used only for the reference. Secondary data has been
collected by respective journals and websites.

3.3 Sampling:

Sampling procedure:

The sample was selected of them who are the employees of the PUNJAB NATIONAL
BANK, BATALA, QADIAN branches. It was also collected through personal visits to
employees, by formal or informal talks and through filling up the questions prepared. The
data has been analyzed by using mathematical/statistical tool.

Sample size:

The sample size of my study are 50 employees 25 employees from Batala branch and 25 from
Qadian branch of Punjab national bank.

Sample technique: -convenience sampling.

Sample Design:- Exploratory sample design

47
3.4 LIMITATIONS OF THE STUDY

The limitations of the study are the following

The data was collected through questionnaire. The responds from the
respondents may not be accurate.
The sample taken for the study was only 50 and the results
d r a w n m a y n o t b e accurate.
Since the organization has strict control, it acts as another barrier for getting data.
Another difficulty was very limited time-span of the project
Lack of experience of Researcher.

48
 CHAPTER 4

DATA ANALYSIS & INTERPRETATION

49
Q.1 Since how long have you been working for this bank?

Table 4.1
Option No. of respondents Percentage (%)

Less than 1 year 3 6%

1-5 years 10 20%

5-10 years 16 32%

More than 10 yrs 21 42%

Total 50 100%

Figure 4.1

Less than 1 year 1-5 years 5-10 years More than 10 yrs

6%
20%
42%

32%

Interpretation: - it is interpreted that 6% respondents respond that they are working from less
than 1 year 20% from 1-5 years 32% are from 5-10 years and 42% are working more than 10 years in
this bank.

50
Q.2 Your bank considers training as a part of its strategy.Do You agree with this statement?

Table 4.2

Option No. of respondents Percentage (%)

Strongly agree 15 30%

Agree 25 50%

Neutral 10 20%

Disagree 0 0%

Strongly disagree 0 0%

Total 50 100%

Figure 4.2

Strongly agree Agree Neutral Disagree Strongly disagree

0%
0%

20%
30%

50%

Interpretation:- it is interpreted that 30% respondents are strongly agree with that their bank
considers training as a part of its strategy 20% are agree and 50% are neutral.

51
Q.3 To whom is training given more in your bank ?

Table 4.3

Option No. of respondents Percentage (%)

New staff 15 30%

Junior staff 10 20%
Senior staff 5 10%
Based on requirement 20 40%
Total 50 100%

Figure 4.3

New staff Junior staff Senior staff Based on requirement

30%
40%

20%
10%

Interpretation:- it is interpreted that 30% respondents respond that training mostly given to

new staff, 20% respond it is given to junior staff 10% respondents respond it provide to senior staff
and 40% respond that it given on the based of requirements.

52
Q.4 what mode of training methods used in your bank?

Table 4.4

Option No. of respondents Percentage (%)

On the job 10 20%

Off the job 10 20%
Both 30 60%
Total 50 100%

Figure 4.4

On the job Off the job Both

20%

60% 20%

Interpretation: - it is interpreted that 20% respondents respond on the job methods are used for
training, another 20% respond that off the job methods are used but 30% respondents respond that
both methods are used for training in bank.

53
Q.5 Training and Development sessions conducted in your bank are Useful.Do you agree with
this statement?

Table 4.5

Option No. of respondents Percentage (%)

Strongly agree 20 40%

Agree 25 50%

Neutral 5 10%

Disagree 0 0%

Strongly disagree 0 0%

Total 50 100%

Figure 4.5

Strongly agree Agree Neutral Disagree Strongly disagree

0%
0%
10%
40%

50%

Interpretation: - it is interpreted that 40% respondents are strongly agree with that Training and
Development sessions conducted in their bank are Useful , 50% are agree and only 10% are neutral
and no one is disagree or strongly disagree with the statement.

54
Q.6 How long does it take to implement the training process?

Table 4.6

Option No. of respondents Percentage (%)

Less than 1 month 5 10%

1-2 months 20 40%

2-4 months 15 30%

4-6 months 5 10%

More than 6 months 5 10%

Total 50 100%

Figure4.6

Less than 1 month 1-2 months 2-4 months

4-6 months More than 6 months

10% 10%
10%

40%
30%

Interpretation: - it is interpreted that 10% respondents responsed that training implementation

process takes less than 1 month 40% are respnsed it implemented within 1-2 months, 30%
responsed it takes 2-4 months ,10% responsed it takes 4-6 months and another 10% responsed for
implementation it takes more than 6 months.

55
Q.7 How well the work place of training is organised?

Table 4.7

Option No. of respondents Percentage (%)

Excellent 15 30%

Good 25 50%

Bad 0 0%

Average 10 20%

Total 50 100%

Figure 4.7

Excellent Good Bad Average

20%
0% 30%

50%

Interpretation: - it is interpreted that 30% respondents response that the work place of their
training is excellently organized whereas 50% responsed that it is good and 20% respond it is
average

56
Q.8 Is training helpful to increase productivity and achieve organization goal?

Table 4.8

Option No. of respondents Percentage (%)

Strongly agree 20 40%

Agree 25 50%

Neutral 5 10%

Disagree 0 0%

Strongly disagree 0 0%

Total 50 100%

Figure 4.8

Disagree Strongly
0% disagree
Neutral 0%
10% 0
40%

Agree
50%

Interpretation: - it is interpreted that 40% respondents are strongly agree with that training is
helpful in the increment of productivity and in the achievement of organization goal whereas 50%
are agree 10% are neutral and no one is disagree with the statement.

57
Q.9 Is training program helpful in personal growth?

Table 4.9

Option No. of respondents Percentage (%)

Yes 50 100%

No 0 0%

Total 50 100%

Figure 4.9

No. of respondents
no
0%

yes
100%

Interpretation: - it is interpreted that all the respondents response that training is helpful in
their personal growth.

58
Q.10 What are the conditions that have to be improved during training sessions?

Table 4.10

Option No .of respondents Percentage (%)

Re design the workplace 10 20%

Remove the interference 15 30%

Upgrade the information 25 50%

Material given during
training
Total 50 100%

Figure 4.10

Re design the
workplace
20%
Upgrade the
information
50%
Remove the
interference
30%

Interpretation: - it is interpreted that 20% responsedents response that work place shoud be
re- designed for training whereas 30% response interferences should be removed and other 50%
respond that the information and Material given during training should be upgrade.

59
Q.11 What are the barriers to training and development in your bank?

Table 4.11

Option No. of respondents Percentage (%)

Time 20 40%

Lack of interest 5 10%

money 10 20%

Non availability of skilled 15 30%

trainer
Total 50 100%

Figure 4.11

Non availability
of skilled trainer
30%
Time
40%

money
20%

Lack of interest
10%

Interpretation: - it is interpreted that 40% respondents response that lack of time is bigger

barrier during training whereas 10% respond that lack of interest is a major barrier 20% considers
money is a barrier and 30% considers non availability of skilled trainer is a major training barrier.

60
Q.12 what are the general complaints about training sessions?

Table 4.12

Option No. of respondents Percentage (%)

Take away precious time of 15 30%

workers
Gap between the sessions 10 20%

Training sessions are 25 50%

unplanned
Boring and not useful. 0 0%

Total 50 100%

Figure4.12

0%

30%

50%

20%

Interpretation: - it is interpreted that 30% respondents respones that Taking away precious

time of workers is a major general complaint whereas 20% considers Gap between the Training
sessions are unplanned is a general complaint and 50% respond that complaints mostly took placed
for Boring and not useful sessions.

61
Q.13 Are you satisfied with safety measures provided by the management in the training?

Table 4.13

Option No. of respondents Percentage (%)

Strongly Agree 15 30%

Agree 25 50%
Neutral 10 20%
Disagree 0 0%
Strongly disagree 0 0%
Total 50 100%

Figure 4.13

Disagree Strongly
0% disagree
0%
Neutral
20% Strongly Agree
30%

Agree
50%

Interpretation: - it is interpreted that 30% are strongly agree , 50% agree, 20% are neutral with
safety measures provided by the bank and no one is disagree as well as strongly disagree with it.

62
Q.14 Rate the quality of training that you received from the training session?

Table 4.14

Option No. of respondents Percentage (%)

Very beneficial 20 40%

Beneficial 25 50%
Moderate 5 10%
Not beneficial 0 0%
Not - important 0 0%
Total 50 100%

Figure 4.14

Not beneficial Not - important

0% 0%
Moderate
10%
Very beneficial
40%

Beneficial
50%

Interpretation: - it is interpreted that 40% respondents response that the quality of training that
that they received from the training is very beneficial whereas 50% respond that it is beneficial to
them but 10% are moderate in response and there is no one who disagree or strongly disagree with
statement.

63
 Chapter 5

Findings, Conclusion& Recommendations

64
5.1 Findings

On the basis of the data analysis and interpretations the research come to know that following
points:

Majority of workers are working from more than 10 years in this bank.
Majority of respondents are neutral with that their bank considers training as a part of
organization strategy.
40% respondents respond that training mostly given to based on requirement.
More of the respondents respond that both methods are used for training in bank.
50% respondents are agree with that Training and Development sessions conducted in their
bank are Useful .
majority of respondents responsed that training implementation process takes 2-4 months
50% responsed that the work place of their training is good
Majority of respondents respond that training is helpful in the increment of productivity and
in the achievement of organization goal
All the respondents response that training is helpful in their personal growth.
50% respond that the information and Material given during training should be
upgrade.
Majority of respondents response that lack of time is bigger barrier during training than
others.
majority of respondents respond that complaints mostly took placed for Boring and not
useful sessions.
50% respondents are agree with safety measures provided by the bank.
Majority of respondents response that the quality of training that that they received from
the training is beneficial to them

5.2 Conclusion

It is concluded from this research that Punjab national bank mainly take both on the job and
off the job training method which used as on the requirement needed and it helpful in the
employees performance which directly relates to bank performance. Organization takes it as
their strategy and provides essential material in training sessions that is required still there

65
have some shortcoming in training process and by overcoming this bank can gain more and
more profits.

5.3 Recommendations

The management must commit itself to allocate major resources and adequate time to
training.
Ensure that training contribute to competitive strategies of the organization.
Training should help employees at all levels acquire the needed skills.
HR department should conduct seminars on some vital topics so that employees
always motivated and encouraged to work.
There should be healthy relationship between employees and management.
Interferences should be reduced while training sessions.

66
Bibliography

References

Mulder.Martin, (2001). Customer satisfaction with training programs. Journal of

European Industrial Training 25(6): 321-31

Shreya Sarkar-Barney, (2004). The role of national culture in enhancing Training

Effectiveness: A Framework, Advances in Human Performance and Cognitive
Engineering Research 4: 183-213.

Olaniyan, D. A. and Lucas. B. Ojo, (2008). Staff Training and Development: A vital
tool for Organizational Effectiveness. European journal of Scientific Research 24(3):
326-31.

Pollitt.David, (2009).Southern coaches managers in a better way of working. Journal

of human resource management international digest 17(5): 17-19.

Pilar Pineda, (2010). Evaluation of training in organizations: a proposal for an

integrated model. Journal of European Industrial Training 34(7): 673-93.

Muhammad Zahid Iqbal, et.al., (2011). An Empirical Analysis of the Relationship

between Characteristics and Formative Evaluation of Training. The International
Journal of Business Research 4 (1): 273-86.

67
Books

Kothari.C.R, Research Methodology, New Delhi, New Age International (P) Limited,
Publishers, 2005.

Sharma.Sandhir and Bansil.Gautam Research Methodology, New Delhi, IB

Publications ,2008
Rivaz.Rainaye (2004). Training Effectiveness in Public Sector and Private Sector
Commercial Banks A Micro-Level Comparative Study. Management & Change, Vol
8, No 1 & 2, pp. 49-67
Richards.jane (1997). Management Training-the Real Objectives , September 1997
Vol .33, No.7, pp.

Websites

Http//www.pnb.india.in//
Http//www.rbi.org.in//
Http//www.pnb.india.com//
Http//www.banksifscode.com//

68
Annexure

69
EMPLOYEE PERSONNEL INFORMATION

Name ----------------------------------------------------------------------------

Age ----------------------------------------------------------------------------

Gender ----------------------------------------------------------------------------

Designation/Address -----------------------------------------------------------

Email Id-------------------------------------------------------------------------

PH .No---------------------------------------------------------------------------

Questionnaire from employees of Punjab national bank is as

follows:-

Questionnaires are filled by 50 employees presently working in Punjab national bank at

Qadian and Batala branch

Q.1.For how long have you been working for this bank?

a) Less than 1 year

b) 1-5 years
c) 5-10 years
d) More than 10 yrs

Q.2 Your bank considers training as a part of its strategy. Do You agree with this statement?

a) Strongly agree
b) Agree
c) neutral

d) Disagree

70
 e) Strongly Disagree

Q.3 To whom is training given more in your bank ?

a) New staff
b) Junior staff
c) Senior staff
d) Based on requirement

Q.4 what mode of training methods used in your bank?

a) On the job
b) Off the job
c) Both

Q.5 Training and Development sessions conducted in your bank are Useful.Do you agree with
this statement?

a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree

Q.6 How long does it take to implement the trained process?

a) Less than one month

b) 1-2 months

c) 2-4 months

d) 4-6 months

e) More than 6 months

71
Q.7 How well the work place of training is organised?

a) Excellent

b) Good

c) Bad

d) Average

Q.8 is training helpful to increase productivity and achieve organization goal?

a) Strongly agree

b) Agree

c) Neutral

d) Disagree

e) Strongly Disagree

Q.9 is training program helpful in personal growth?

a) Yes

b) No

Q.10 . What are the conditions that have to be improved during training sessions?

a) Re organise the job

b) Remove interference

c) Re organise the work- place

d) Up grade the information& material

Q.11 What are the barriers to training and development in your bank?

a) Time

b) Lack of interest

72
 c) Money

d) Non availability of skilled trainer

Q.12 . What are the general complaints about training sessions?

a) Take away precious time of workers

b) Too many gaps between the sessions.

c) Training sessions are unplanned.

d) Boring and not useful.

Q.13 Are you satisfied with safety measures provided by the management in the training?

a) Strongly agree

b) Agree

c) Neutral

d) Disagree

e) Strongly Disagree

Q.14 Rate the quality of training that you received from the training session?

a) Very beneficial

b) Beneficial

c) Moderate

d) Not beneficial

e) Not important

73