͙ ͙t th he e n na am me e y yo ou u c ca an n b ba an nk k u up po on n! !! !! !

Punjab National Bank

Project Guide: Mr. Ratan Thakur
Rebranding Of PNB E-Products
Summer Internship Project
By Vaishali Lapasia

The project includes analysis of various e-banking solutions of the bank like internet banking, mobile
banking, ATMs, credit cards, debit cards, etc. and also provides a strategy for re-branding of all these
products in order to improve the brand image of the bank in the minds of the customers.

2


Table of Contents

1. Indian Banking Sector ......................................................................................................................... 7
1.1 Overview ........................................................................................................................................ 7
1.2 Structure of the banking industry ................................................................................................... 8
1.3 Banking potential in India ............................................................................................................... 9
1.4 Industry segments .......................................................................................................................... 9
1.5 Distribution of banks .................................................................................................................... 10
1.6 Major key players ......................................................................................................................... 11
1.7 New initiatives by public sector banks .......................................................................................... 12
2. Electronic banking ............................................................................................................................. 12
1.1 Definition ..................................................................................................................................... 12
3. Internet banking................................................................................................................................ 14
3.1 Growth in internet banking........................................................................................................... 15
3.2 The Indian Saga ............................................................................................................................ 18
3.3 The PSU lethargy .......................................................................................................................... 19
3.4 Bouquet Strategy ......................................................................................................................... 20
3.5 Bank͛s key pain points and opportunities in internet banking ....................................................... 21
4. Mobile banking ................................................................................................................................. 21
5. ATMs ................................................................................................................................................. 22
6. Credit Cards ....................................................................................................................................... 23
7. Debit Cards ........................................................................................................................................ 25
8. Punjab National Bank ........................................................................................................................ 27
8.1 Company profile ........................................................................................................................... 27
8.2 Vision ........................................................................................................................................... 27
8.3 Mission ........................................................................................................................................ 28
8.4 Overview of the performance as on Mar͛10 ................................................................................. 28
8.5 Punjab National Bank͛s robust technology platform ..................................................................... 29

3

8.6 Punjab National Bank increasing its global footprints ................................................................... 30
8.7 Awards and accolades during the year ......................................................................................... 30
8.8 Products and services ................................................................................................................... 31
9. PEST analysis ..................................................................................................................................... 32
10. SWOT analysis ................................................................................................................................. 33
11. TOWS analysis ................................................................................................................................. 34
12. Research Statement ........................................................................................................................ 35
12.1 Research problem....................................................................................................................... 35
12.2 Project objectives ....................................................................................................................... 35
12.3 Research design, methodology and research statement ............................................................. 35
12.3.1 Research plan ................................................................................................................. 35
12.3.1.1 Primary investigation ...................................................................................... 35
12.3.1.2 Exploratory study ............................................................................................ 35
12.3.2 Research design .............................................................................................................. 36
12.4 Analysis and rebranding of PNB internet banking ....................................................................... 36
12.4.1 Findings .......................................................................................................................... 38
12.4.2 Suggested perception towards internet banking advertisements .................................... 38
12.4.3 Developing research plan ............................................................................................... 39
12.4.4 Collection of data ........................................................................................................... 40
12.4.5 Sampling plan͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙ 40
12.4.6 Data collection instrument developed ............................................................................ 41
12.4.7 Research limitations ....................................................................................................... 41
12.4.8 Questionnaire ................................................................................................................. 42
12.4.9 Analysis and interpretation through EXCEL ..................................................................... 46
12.4.10 Other analytical tools .................................................................................................... 52
12.4.10.1 SWOT analysis ............................................................................................... 52
12.4.10.2 Porter͛s 5 forces model ................................................................................. 53
12.4.10.3 Ansoff͛s product-market mix ......................................................................... 54
12.4.11 Strategies for rebranding PNB internet banking ............................................................ 55
12.5 Analysis and rebranding of PNB mobile banking ......................................................................... 57
12.5.1 Strategies for rebranding PNB mobile banking ................................................................ 58

4

12.6 Analysis and rebranding of PNB ATMs ........................................................................................ 59
12.6.1 Strategies for rebranding PNB ATMs ............................................................................... 60
12.7 Analysis and rebranding of PNB Credit Cards ............................................................................. 61
12.7.1 Strategies for rebranding PNB Credit Cards ..................................................................... 62
12.8 Analysis and rebranding of PNB Debit Cards ............................................................................... 63
12.8.1 Strategies for rebranding PNB Debit Cards ...................................................................... 64
13. Conclusion and recommendations .................................................................................................. 66
14. Bibliography͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙ 68




















5

ACKNOWLEDGEMENT
Success is the effort bounded actively, involving the co-operation of all.
To create and formulate this project, I would like to thank one person who served as my guide epitome
of knowledge.
I would like to thank Mr. Ratan Thakur, my MBA project guide, for giving me any time and every time
guidance and continuous support. His experience and methodology of providing training helped me in
not only to perform the desired activity but also to accomplish creativity. I would also like to thank my
parents and my family who were always there to support me throughout this project.
I would also like to thank Prof. Bhagyalakshmi and all the other faculty members who are not only a
source of inspiration but also a source of constant innovation.















6

DECLARATION
I, Vaishali Lapasia, hereby declare that I have carried out my summer training project in Punjab National
Bank. The topic of the project was ͞Re-branding of banking e-products͟.
I further declare that the project work is entirely my original work and no part of this report has been
published to or submitted to anybody or university for award of any other diploma or degree.
Ms. VAISHALI LAPASIA
STUDENT: K.J.Somaiya Institute of Management Studies and Research

















7

1 1. . I In nd di ia an n b ba an nk ki in ng g s se ec ct to or r: :
1 1. .1 1 O Ov ve er rv vi ie ew w: :
B Ba an nk ks s, , o ov ve er r t th he e y ye ea ar rs s, , h ha av ve e b be ec co om me e a a s si ig gn ni if fi ic ca an nt t a as sp pe ec ct t o of f a an n e ec co on no om my y. . I In n t to od da ay y͛ ͛s s s sc ce en na ar ri io o, , t th he e
p po os si it ti io on n o of f b ba an nk ks s h ha av ve e b be ec co om me e a al ll l t th he e m mo or re e i im mp po or rt ta an nt t i in n t th he e c co ou ur rs se e o of f w wo or rk ki in ng g o of f t th he e m mo on ne ey y
m ma ar rk ke et t a an nd d h he en nc ce e t th he e e ec co on no om my y o of f a a n na at ti io on n. . T Th he e b ba an nk ki in ng g s se ec ct to or r f fo or rm mi in ng g a a p po or rt ti io on n o of f t th he e
f fi in na an nc ci ia al l s se ec ct to or r p pr ri im ma ar ri il ly y w wo or rk ks s a as s a a f fi in na an nc ci ia al l i in nt te er rm me ed di ia ar ry y g ge en ne er ra at ti in ng g m mo on ne ey y s su up pp pl ly y. . F Fr ro om m t th he e
d di if ff fe er re en nt t m ma ac cr ro o e ec co on no om mi ic c m mo od de el ls s, , b ba an nk ks s h ha av ve e b be ee en n f fo ou un nd d t to o b be e a a p pa ar rt t o of f t th he e s su up pp pl ly y s si id de e o of f t th he e
e ec co on no om my y. . H Ho ow we ev ve er r, , o ov ve er r t ti im me e b ba an nk ks s h ha av ve e t tr ra an ns sf fo or rm me ed d f fr ro om m m me er re el ly y m mo on ne ey y g ge en ne er ra at ti in ng g
o or rg ga an ni iz za at ti io on ns s t to o a a m mu ul lt ti i t ta as sk ki in ng g e en nt ti it ty y. .
I In nd di ia a i is s w we el ll l p po os si it ti io on ne ed d t to o b be ec co om me e t th he e f fo ou ur rt th h- -l la ar rg ge es st t e ec co on no om my y o of f
t th he e w wo or rl ld d b by y 2 20 02 25 5. .G GD DP P g gr ro ow wt th h r ra at te es s o of f 7 7- -8 8 p pe er r c ce en nt t a a y ye ea ar r w wi il ll l b be e
s su us st ta ai in na ab bl le e g go oi in ng g f fo or rw wa ar rd d i if f k ke ey y e en na ab bl li in ng g f fa ac ct to or rs s h ha av ve e b be ee en n p pu ut t t to o
p pl la ac ce e. . O On ne e o of f t th he e e en na ab bl le er rs s o of f r ro ob bu us st t e ec co on no om mi ic c g gr ro ow wt th h i is s a a b ba an nk ki in ng g
s se ec ct to or r t th ha at t i is s a ab bl le e t to o a ad de eq qu ua at te el ly y a an nd d e ef ff fi ic ci ie en nt tl ly y m me ee et t t th he e n ne ee ed ds s o of f a a
g gr ro ow wi in ng g e ec co on no om my y. . T Th he e B Ba an nk ki in ng g s se ec ct to or r i in n I In nd di ia a h ha as s a al lw wa ay ys s b be ee en n o on ne e
o of f t th he e m mo os st t p pr re ef fe er rr re ed d a av ve en nu ue es s o of f e em mp pl lo oy ym me en nt t. . I In n t th he e c cu ur rr re en nt t d de ec ca ad de e, , t th hi is s h ha as s e em me er rg ge ed d a as s a a
r re es su ur rg ge en nt t s se ec ct to or r i in n t th he e I In nd di ia an n e ec co on no om my y. . I It t i is s p pr ro oj je ec ct te ed d t th ha at t t th he e s se ec ct to or r h ha as s t th he e p po ot te en nt ti ia al l t to o
a ac cc co ou un nt t f fo or r o ov ve er r 7 7. .7 7 p pe er r c ce en nt t o of f G GD DP P w wi it th h o ov ve er r R Rs s. .7 7, , 5 50 00 0 b bi il ll li io on n i in n m ma ar rk ke et t c ca ap p, , a an nd d t to o p pr ro ov vi id de e
o ov ve er r 1 1. .5 5 m mi il ll li io on n j jo ob bs s. .


0%
20%
40%
60%
2001-2010
India
World
As per the McKinsey report ͚India Banking
2010͛, the banking sector index has grown at
a compounded annual rate of over 51 per
cent since the year 2001, as compared to a 27
per cent growth in the market index during the
same period.

8

Banking
Institutions
Regional
Rural
Banks
Commercial
Banks
Foreign
Banks
Indian
Commercial
Banks
Public
Sector
Banks
State Bank
Group
Nationalised
banks
Punjab
National
Bank
Private
Sector
Banks
Co-operative
Banks
State
Cooperatives
Central/District
Cooperatives
Land
Development
Banks
Industrial
Development
Banks
T To od da ay y, , b ba an nk ks s h ha av ve e d di iv ve er rs si if fi ie ed d t th he ei ir r a ac ct ti iv vi it ti ie es s a an nd d a ar re e g ge et tt ti in ng g i in nt to o n ne ew w p pr ro od du uc ct ts s a an nd d s se er rv vi ic ce es s
t th ha at t i in nc cl lu ud de e o op pp po or rt tu un ni it ti ie es s i in n c cr re ed di it t c ca ar rd ds s, , c co on ns su um me er r f fi in na an nc ce e, , w we ea al lt th h m ma an na ag ge em me en nt t, , l li if fe e a an nd d
g ge en ne er ra al l i in ns su ur ra an nc ce e, , i in nv ve es st tm me en nt t b ba an nk ki in ng g, , m mu ut tu ua al l f fu un nd ds s, , p pe en ns si io on n f fu un nd d r re eg gu ul la at ti io on n, , s st to oc ck k b br ro ok ki in ng g
s se er rv vi ic ce es s, , c cu us st to od di ia an n s se er rv vi ic ce es s, , p pr ri iv va at te e e eq qu ui it ty y, , e et tc c. . F Fu ur rt th he er r, , m mo os st t o of f t th he e l le ea ad di in ng g I In nd di ia an n b ba an nk ks s a ar re e
g go oi in ng g g gl lo ob ba al l, , s se et tt ti in ng g u up p o of ff fi ic ce es s i in n f fo or re ei ig gn n c co ou un nt tr ri ie es s, , b by y t th he em ms se el lv ve es s o or r t th hr ro ou ug gh h t th he ei ir r s su ub bs si id di ia ar ri ie es s. .
1 1. .2 2 S St tr ru uc ct tu ur re e o of f t th he e b ba an nk ki in ng g i in nd du us st tr ry y: :









B Ba an nk ks s h ha av ve e a a c co om mb bi in ne ed d n ne et tw wo or rk k o of f o ov ve er r 5 53 3, ,0 00 00 0 b br ra an nc ch he es s a an nd d 4 49 9, ,0 00 00 0 A AT TM Ms s. . A Ac cc co or rd di in ng g t to o a a
r re ep po or rt t b by y I IC CR RA A L Li im mi it te ed d, , a a r ra at ti in ng g a ag ge en nc cy y, , t th he e p pu ub bl li ic c s se ec ct to or r b ba an nk ks s h ho ol ld d o ov ve er r 7 75 5 p pe er rc ce en nt t o of f t to ot ta al l
a as ss se et ts s o of f t th he e b ba an nk ki in ng g i in nd du us st tr ry y, , w wi it th h t th he e p pr ri iv va at te e a an nd d f fo or re ei ig gn n b ba an nk ks s h ho ol ld di in ng g 1 18 8. .2 2% % a an nd d 6 6. .5 5% %
r re es sp pe ec ct ti iv ve el ly y. .
N Ne ea ar rl ly y 7 70 0% % o of f t th he e t to ot ta al l n no o. . o of f b br ra an nc ch he es s o of f a al ll l t th he e c co om mm me er rc ci ia al l b ba an nk ks s p pu ut t t to og ge et th he er r i is s i in n r ru ur ra al l a an nd d
s se em mi i- - u ur rb ba an n a ar re ea as s. . B Bu ul lk k o of f c co om mm me er rc ci ia al l b ba an nk k f fi in na an nc ce e i is s f fo or r s sh ho or rt t t te er rm m w wo or rk ki in ng g c ca ap pi it ta al l n ne ee ed ds s o of f

9

i in nd du us st tr ry y, , t tr ra ad de e, , a ag gr ri ic cu ul lt tu ur re e a an nd d p pe er rs so on na al l s se eg gm me en nt t. . B Ba an nk ks s a ar re e s su up pp po or rt ti in ng g g gr ro ow wt th h i in n t th he e e ec co on no om my y
b by y f fi in na an nc ci in ng g p pr ro od du uc ct ti iv ve e s se ec ct to or rs s. .
D Du ue e t to o v vi ib br ra an nt t c co om mp pe et ti it ti io on n, , m ma ar rk ke et t s sh ha ar re e o of f v va ar ri io ou us s g gr ro ou up p b ba an nk ks s h ha av ve e c ch ha an ng ge ed d, , t th ho ou ug gh h p pu ub bl li ic c
s se ec ct to or r b ba an nk ks s s st ti il ll l d do om mi in na at te e t th he e e en nt ti ir re e m ma ar rk ke et t. .
1 1. .3 3 B Ba an nk ki in ng g p po ot te en nt ti ia al l i in n I In nd di ia a: :
I In nd di ia a h ha as s a a h hu ug ge e s sk ki il ll le ed d m ma an na ag ge er ri ia al l a an nd d t te ec ch hn ni ic ca al l m ma an np po ow we er r w wh hi ic ch h c ca an n b bo oo os st t t th he e
b ba an nk ki in ng g i in nd du us st tr ry y t to o g gr re ea at t h he ei ig gh ht ts s. .
H Hu ug ge e m mi id dd dl le e c cl la as ss s p po op pu ul la at ti io on n p pr ro ov vi id de es s I In nd di ia a w wi it th h a a d di is st ti in nc ct ti iv ve e e ed dg ge e i in n t th he e g gl lo ob ba al l
c co om mp pe et ti it ti io on n. .
I In nd di ia a h ha as s a a w we el ll l e es st ta ab bl li is sh he ed d j ju ud di ic ci ia ar ry y s sy ys st te em m a an nd d a a s so op ph hi is st ti ic ca at te ed d l le eg ga al l a an nd d a ac cc co ou un nt ti in ng g
s sy ys st te em m w wh hi ic ch h c ca an n e en nh ha an nc ce e t th he e g gr ro ow wt th h o of f t th he e b ba an nk ki in ng g i in nd du us st tr ry y f fu ur rt th he er r. .
I In nd di ia a h ha as s a a u us se er r f fr ri ie en nd dl ly y i in nt te el ll le ec ct tu ua al l i in nf fr ra as st tr ru uc ct tu ur re e w wh hi ic ch h w wi il ll l e en ns su ur re e r ra ap pi id d g gr ro ow wt th h o of f t th he e
i in nd du us st tr ry y. .
L La as st tl ly y, , I In nd di ia a h ha as s f fr re ee e a an nd d v vi ib br ra an nt t p pr re es ss s w wh hi ic ch h e en ns su ur re es s t th he e r re eg gu ul la at ti io on ns s i in n t th he e b ba an nk ki in ng g
i in nd du us st tr ry y. .
1 1. .4 4 I In nd du us st tr ry y s se eg gm me en nt ts s: :
N Na at ti io on na al li iz ze ed d/ / P Pu ub bl li ic c s se ec ct to or r b ba an nk ks s: :
T Th he es se e b ba an nk ks s d do om mi in na at te e t th he e I In nd di ia an n b ba an nk ki in ng g s sy ys st te em m. . T Th he er re e a ar re e t to ot ta al l 2 26 6 p pu ub bl li ic c s se ec ct to or r b ba an nk ks s i in n
I In nd di ia a ( (A As s o on n 2 26 6- -0 09 9- -2 20 00 09 9) ). . O Of f t th he es se e 1 19 9 a ar re e n na at ti io on na al li iz ze ed d b ba an nk ks s, , 6 6( (S ST TA AT TE E B BA AN NK K O OF F I IN ND DO OR RE E A AL LS SO O
M ME ER RG GE ED D R RE EC CE EN NT TL LY Y) ) b be el lo on ng g t to o S SB BI I & & a as ss so oc ci ia at te es s g gr ro ou up p a an nd d 1 1 b ba an nk k ( (I ID DB BI I B Ba an nk k) ) i is s c cl la as ss si if fi ie ed d a as s
o ot th he er r p pu ub bl li ic c s se ec ct to or r b ba an nk k. .
P Pr ri iv va at te e B Ba an nk ks s: :
P Pr ri iv va at te e B Ba an nk ks s m ma ad de e b ba an nk ki in ng g m mo or re e e ef ff fi ic ci ie en nt t a an nd d c cu us st to om me er r f fr ri ie en nd dl ly y i in n I In nd di ia a. . I It t l le ed d t th he e
t tr ra an ns sf fo or rm ma at ti io on n o of f b ba an nk ki in ng g f fr ro om m c cl la as ss s b ba an nk ki in ng g t to o m ma as ss s b ba an nk ki in ng g. .

10

P Pr ri iv va at te e B Ba an nk ks s j jo ol lt te ed d p pu ub bl li ic c s se ec ct to or r b ba an nk ks s o ou ut t o of f c co om mp pl la ac ce en nc cy y a an nd d f fo or rc ce ed d t th he em m t to o b be e m mo or re e
c co om mp pe et ti it ti iv ve e. .
F Fo or re ei ig gn n b ba an nk ks s: :
F Fo or re ei ig gn n b ba an nk ks s h ha av ve e b br ro ou ug gh ht t l la at te es st t t te ec ch hn no ol lo og gy y a an nd d l la at te es st t b ba an nk ki in ng g p pr ra ac ct ti ic ce es s i in n I In nd di ia a. .
T Th he ey y h ha av ve e h he el lp pe ed d m ma ak ke e I In nd di ia an n b ba an nk ki in ng g s sy ys st te em m m mo or re e e ef ff fi ic ci ie en nt t a an nd d c co om mp pe et ti it ti iv ve e. .
V Va ar ri io ou us s e e- -b ba an nk ki in ng g s so ol lu ut ti io on ns s a ar re e w wh ha at t t th he es se e f fo or re ei ig gn n b ba an nk ks s h ha as s g gi iv ve en n t to o t th he e I In nd di ia an n b ba an nk ki in ng g
i in nd du us st tr ry y. .
1 1. .5 5 D Di is st tr ri ib bu ut ti io on n o of f b ba an nk ks s: :


P Pu ub bl li ic c s se ec ct to or r b ba an nk ks s P Pr ri iv va at te e s se ec ct to or r b ba an nk ks s F Fo or re ei ig gn n b ba an nk ks s A AS SC CB B t to ot ta al l b ba an nk ks s
B Br ra an nc ch he es s 8 88 8. .4 41 1 1 11 1. .3 33 3 0 0. .2 26 6 1 10 00 0
S St ta af ff f 8 87 7. .2 23 3 1 10 0. .7 76 6 2 2. .0 01 1 1 10 00 0
0
10
20
30
40
50
60
70
80
90
100
Branches Staff Deposits Advances Net Profits
Public sector banks
Private sector banks
Foreign banks
ASCB total banks

11

D De ep po os si it ts s 7 75 5. .2 24 4 1 19 9. .4 42 2 5 5. .4 44 4 1 10 00 0
A Ad dv va an nc ce es s 7 73 3. .2 25 5 2 20 0. .2 24 4 6 6. .5 51 1 1 10 00 0
N Ne et t P Pr ro of fi it ts s 7 73 3. .6 62 2 1 16 6. .9 95 5 9 9. .4 43 3 1 10 00 0

1 1. .6 6 M Ma aj jo or r K Ke ey y p pl la ay ye er rs s: :




Foreign Banks
ͻABN AMRO Bank
ͻAbu Dhabi Commercial Bank
Ltd
ͻAmerican Express Bank Ltd
ͻBNP Paribas
ͻCitibank
ͻDBS Bank Ltd
ͻDeutche Bank
ͻHSBC Ltd
ͻStandard CharteredBank
Private Banks
ͻICICI Bank
ͻBank of Rajasthan
ͻBharat Overseas Bank
ͻHDFC Bank
ͻIDBI Bank
ͻING Vyasya Bank
ͻKotak Mahindra Bank
ͻAxis Bank
ͻYes Bank
Public Sector
Banks
ͻState Bank of India
ͻPunjab National Bank
ͻAllahbad Bank
ͻBank of Baroda
ͻBank of India
ͻBank of Maharashtra
ͻCanara Bank
ͻCentral Bank of India
ͻDena bank
ͻIndian Overseas Bank
ͻOriental Bank of Commerce

12

1 1. .7 7 N Ne ew w i in ni it ti ia at ti iv ve es s b by y p pu ub bl li ic c s se ec ct to or r b ba an nk ks s: :

2 2. . E El le ec ct tr ro on ni ic c b ba an nk ki in ng g: :
2 2. .1 1 D De ef fi in ni it ti io on n: :
E El le ec ct tr ro on ni ic c b ba an nk ki in ng g i is s a an n u um mb br re el ll la a t te er rm m f fo or r t th he e p pr ro oc ce es ss s b by y w wh hi ic ch h a a c cu us st to om me er r m ma ay y p pe er rf fo or rm m
b ba an nk ki in ng g t tr ra an ns sa ac ct ti io on ns s w wi it th ho ou ut t v vi is si it ti in ng g a a b br ri ic ck k ʹ ʹ a an nd d ʹ ʹ m mo ot to or r i in ns st ti it tu ut ti io on n. .
F Fr ro om m t th he e v va ar ri io ou us s e e- -p pr ro od du uc ct ts s t th ha at t t th he e b ba an nk k o of ff fe er rs s, , t th hi is s p pr ro oj je ec ct t f fo oc cu us se es s o on n t th he e f fo ol ll lo ow wi in ng g e e- -
b ba an nk ki in ng g f fa ac ci il li it ti ie es s: :
I In nt te er rn ne et t B Ba an nk ki in ng g
M Mo ob bi il le e B Ba an nk ki in ng g
A AT TM M
D De eb bi it t C Ca ar rd ds s
C Cr re ed di it t C Ca ar rd ds s
1
ͻ Specialized branches
2
ͻ New products targeted to specific groups
3
ͻ Change in structure, systems and procedures involving quick turnaround time to
meet the global standards
4
ͻ Marketing orientation
5
ͻ Change in ambience
6
ͻ Recruitment of specialists
7
ͻ Tie-ups sharing networks and strategic alliances

13


Source: ABA - Preferred Bunklng Method 2007-2009


3 3. . I IN NT TE ER RN NE ET T B BA AN NK KI IN NG G: :
͞ ͞I In nt te er rn ne et t b ba an nk ki in ng g͟ ͟ r re ef fe er rs s t to o s sy ys st te em ms s t th ha at t e en na ab bl le e b ba an nk k
c cu us st to om me er rs s t to o a ac cc ce es ss s a ac cc co ou un nt ts s a an nd d g ge en ne er ra al l i in nf fo or rm ma at ti io on n o on n
b ba an nk k p pr ro od du uc ct ts s a an nd d s se er rv vi ic ce es s t th hr ro ou ug gh h a a p pe er rs so on na al l c co om mp pu ut te er r
( (P PC C) ) o or r o ot th he er r i in nt te el ll li ig ge en nt t d de ev vi ic ce e. . I In nt te er rn ne et t b ba an nk ki in ng g p pr ro od du uc ct ts s
a an nd d s se er rv vi ic ce es s c ca an n i in nc cl lu ud de e w wh ho ol le es sa al le e p pr ro od du uc ct ts s f fo or r c co or rp po or ra at te e c cu us st to om me er rs s a as s w we el ll l a as s r re et ta ai il l a an nd d
f fi id du uc ci ia ar ry y p pr ro od du uc ct ts s f fo or r c co on ns su um me er rs s. . U Ul lt ti im ma at te el ly y, , t th he e p pr ro od du uc ct ts s a an nd d s se er rv vi ic ce es s o ob bt ta ai in ne ed d t th hr ro ou ug gh h
I In nt te er rn ne et t b ba an nk ki in ng g m ma ay y m mi ir rr ro or r p pr ro od du uc ct ts s a an nd d s se er rv vi ic ce es s o of ff fe er re ed d t th hr ro ou ug gh h o ot th he er r b ba an nk k d de el li iv ve er ry y
c ch ha an nn ne el ls s. . S So om me e e ex xa am mp pl le es s o of f w wh ho ol le es sa al le e p pr ro od du uc ct ts s a an nd d s se er rv vi ic ce es s i in nc cl lu ud de e: :
C Ca as sh h m ma an na ag ge em me en nt t
W Wi ir re e t tr ra an ns sf fe er r
A Au ut to om ma at te ed d c cl le ea ar ri in ng gh ho ou us se e ( (A AC CH H) ) t tr ra an ns sa ac ct ti io on ns s
B Bi il ll l p pr re es se en nt tm me en nt t a an nd d p pa ay ym me en nt t
E Ex xa am mp pl le es s o of f r re et ta ai il l a an nd d f fi id du uc ci ia ar ry y p pr ro od du uc ct ts s a an nd d s se er rv vi ic ce es s i in nc cl lu ud de e: :

14

B Ba al la an nc ce e i in nq qu ui ir ry y
F Fu un nd ds s t tr ra an ns sf fe er r
D Do ow wn nl lo oa ad di in ng g t tr ra an ns sa ac ct ti io on n i in nf fo or rm ma at ti io on n
B Bi il ll l p pr re es se en nt tm me en nt t a an nd d p pa ay ym me en nt t
L Lo oa an n a ap pp pl li ic ca at ti io on ns s
I In nv ve es st tm me en nt t a ac ct ti iv vi it ty y
O Ot th he er r v va al lu ue e- -a ad dd de ed d s se er rv vi ic ce es s
O Ot th he er r I In nt te er rn ne et t b ba an nk ki in ng g s se er rv vi ic ce es s m ma ay y i in nc cl lu ud de e p pr ro ov vi id di in ng g I In nt te er rn ne et t a ac cc ce es ss s a as s a an n I In nt te er rn ne et t S Se er rv vi ic ce e
P Pr ro ov vi id de er r ( (I IS SP P) ). . T Th he e O OC CC C h ha as s d de et te er rm mi in ne ed d t th ha at t a a n na at ti io on na al l b ba an nk k s su ub bs si id di ia ar ry y m ma ay y p pr ro ov vi id de e h ho om me e
b ba an nk ki in ng g s se er rv vi ic ce es s t th hr ro ou ug gh h a an n I In nt te er rn ne et t c co on nn ne ec ct ti io on n t to o t th he e b ba an nk k͛ ͛s s h ho om me e b ba an nk ki in ng g s sy ys st te em m a an nd d, ,
i in nc ci id de en nt ta al l t to o t th ha at t s se er rv vi ic ce e, , m ma ay y a al ls so o p pr ro ov vi id de e I In nt te er rn ne et t a ac cc ce es ss s t to o b ba an nk k c cu us st to om me er rs s u us si in ng g t th ha at t
s se er rv vi ic ce e. . H Hi is st to or ri ic ca al ll ly y, , b ba an nk ks s h ha av ve e u us se ed d i in nf fo or rm ma at ti io on n s sy ys st te em ms s t te ec ch hn no ol lo og gy y t to o p pr ro oc ce es ss s c ch he ec ck ks s ( (i it te em m
p pr ro oc ce es ss si in ng g) ), , d dr ri iv ve e A AT TM M m ma ac ch hi in ne es s ( (t tr ra an ns sa ac ct ti io on n p pr ro oc ce es ss si in ng g) ), , a an nd d p pr ro od du uc ce e r re ep po or rt ts s. . I In n t th he e p pa as st t, , t th he e
c co om mp pu ut te er r s sy ys st te em ms s t th ha at t m ma ad de e t th he e i in nf fo or rm ma at ti io on n s sy ys st te em ms s o op pe er ra at te e w we er re e r ra ar re el ly y n no ot ti ic ce ed d b by y
c cu us st to om me er rs s. . T To od da ay y, , W We eb b s si it te es s, , e el le ec ct tr ro on ni ic c m ma ai il l, , a an nd d e el le ec ct tr ro on ni ic c b bi il ll l p pr re es se en nt tm me en nt t a an nd d p pa ay ym me en nt t
s sy ys st te em ms s a ar re e a an n i im mp po or rt ta an nt t w wa ay y f fo or r b ba an nk ks s t to o r re ea ac ch h t th he ei ir r c cu us st to om me er rs s. . N Na at ti io on na al l b ba an nk ks s h ha av ve e
e ex xp pe er ri im me en nt te ed d w wi it th h v va ar ri io ou us s f fo or rm ms s o of f o on nl li in ne e b ba an nk ki in ng g f fo or r m ma an ny y y ye ea ar rs s. . S So om me e o of f t th he e e ea ar rl ly y
e ex xp pe er ri im me en nt ts s i in nv vo ol lv ve ed d c cl lo os se ed d s sy ys st te em ms s w wh he er re e t th he e c cu us st to om me er rs s a ac cc ce es ss se ed d b ba an nk ks s t th hr ro ou ug gh h a a d di ia al l- -i in n o or r
c ca ab bl le e T TV V c co on nn ne ec ct ti io on n. . T Th he es se e s sy ys st te em ms s l li im mi it te ed d a a b ba an nk k͛ ͛s s p po ot te en nt ti ia al l c cu us st to om me er r b ba as se e b be ec ca au us se e t th he ey y
r re eq qu ui ir re ed d o ou ut t- -o of f a ar re ea a c cu us st to om me er rs s t to o e ei it th he er r i in nc cu ur r l lo on ng g- -d di is st ta an nc ce e c ch ha ar rg ge es s o on n t th he ei ir r p ph ho on ne e b bi il ll ls s o or r
s su ub bs sc cr ri ib be e t to o a a p pa ar rt ti ic cu ul la ar r c ca ab bl le e T TV V s se er rv vi ic ce e t to o a ac cc ce es ss s t th he e b ba an nk k. . W Wi it th h t th he e w wi id de es sp pr re ea ad d g gr ro ow wt th h o of f
t th he e I In nt te er rn ne et t, , c cu us st to om me er rs s c ca an n u us se e t th hi is s t te ec ch hn no ol lo og gy y a an ny yw wh he er re e i in n t th he e w wo or rl ld d t to o a ac cc ce es ss s a a b ba an nk k͛ ͛s s
n ne et tw wo or rk k. . T Th he e I In nt te er rn ne et t, , a as s a an n e en na ab bl li in ng g t te ec ch hn no ol lo og gy y, , h ha as s m ma ad de e b ba an nk ki in ng g p pr ro od du uc ct ts s a an nd d s se er rv vi ic ce es s
a av va ai il la ab bl le e t to o m mo or re e c cu us st to om me er rs s a an nd d e el li im mi in na at te ed d g ge eo og gr ra ap ph hi ic c a an nd d p pr ro op pr ri ie et ta ar ry y s sy ys st te em ms s b ba ar rr ri ie er rs s. . W Wi it th h
a an n e ex xp pa an nd de ed d m ma ar rk ke et t, , b ba an nk ks s a al ls so o m ma ay y h ha av ve e o op pp po or rt tu un ni it ti ie es s t to o e ex xp pa an nd d o or r c ch ha an ng ge e t th he ei ir r p pr ro od du uc ct t a an nd d
s se er rv vi ic ce e o of ff fe er ri in ng gs s. .



15

3 3. .1 1 G Gr ro ow wt th h i in n I In nt te er rn ne et t B Ba an nk ki in ng g: :
N Nu um me er ro ou us s f fa ac ct to or rs s Ͷ Ͷ i in nc cl lu ud di in ng g c co om mp pe et ti it ti iv ve e c co os st t, , c cu us st to om me er r s se er rv vi ic ce e, , a an nd d d de em mo og gr ra ap ph hi ic c
c co on ns si id de er ra at ti io on ns s Ͷ Ͷ a ar re e m mo ot ti iv va at ti in ng g b ba an nk ks s t to o e ev va al lu ua at te e t th he ei ir r t te ec ch hn no ol lo og gy y a an nd d a as ss se es ss s t th he ei ir r e el le ec ct tr ro on ni ic c
c co om mm me er rc ce e a an nd d I In nt te er rn ne et t b ba an nk ki in ng g s st tr ra at te eg gi ie es s. . M Ma an ny y r re es se ea ar rc ch he er rs s e ex xp pe ec ct t r ra ap pi id d g gr ro ow wt th h i in n c cu us st to om me er rs s
u us si in ng g o on nl li in ne e b ba an nk ki in ng g p pr ro od du uc ct ts s a an nd d s se er rv vi ic ce es s. . T Th he e c ch ha al ll le en ng ge e f fo or r n na at ti io on na al l b ba an nk ks s i is s t to o m ma ak ke e s su ur re e t th he e
s sa av vi in ng gs s f fr ro om m I In nt te er rn ne et t b ba an nk ki in ng g t te ec ch hn no ol lo og gy y m mo or re e t th ha an n o of ff fs se et t t th he e c co os st ts s a an nd d r ri is sk ks s a as ss so oc ci ia at te ed d w wi it th h
c co on nd du uc ct ti in ng g b bu us si in ne es ss s i in n c cy yb be er rs sp pa ac ce e. . M Ma ar rk ke et ti in ng g s st tr ra at te eg gi ie es s w wi il ll l v va ar ry y a as s n na at ti io on na al l b ba an nk ks s s se ee ek k t to o
e ex xp pa an nd d t th he ei ir r m ma ar rk ke et ts s a an nd d e em mp pl lo oy y l lo ow we er r c co os st t d de el li iv ve er ry y c ch ha an nn ne el ls s. . E Ex xa am mi in ne er rs s w wi il ll l n ne ee ed d t to o
u un nd de er rs st ta an nd d t th he e s st tr ra at te eg gi ie es s u us se ed d a an nd d t te ec ch hn no ol lo og gi ie es s e em mp pl lo oy ye ed d o on n a a b ba an nk k- -b by y- -b ba an nk k b ba as si is s t to o a as ss se es ss s
t th he e r ri is sk k. . E Ev va al lu ua at ti in ng g a a b ba an nk k͛ ͛s s d da at ta a o on n t th he e u us se e o of f t th he ei ir r W We eb b s si it te es s, , m ma ay y h he el lp p e ex xa am mi in ne er rs s d de et te er rm mi in ne e
t th he e b ba an nk k͛ ͛s s s st tr ra at te eg gi ic c o ob bj je ec ct ti iv ve es s, , h ho ow w w we el ll l t th he e b ba an nk k i is s m me ee et ti in ng g i it ts s I In nt te er rn ne et t b ba an nk ki in ng g p pr ro od du uc ct t p pl la an n, ,
a an nd d w wh he et th he er r t th he e b bu us si in ne es ss s i is s e ex xp pe ec ct te ed d t to o b be e p pr ro of fi it ta ab bl le e. .
S So om me e o of f t th he e m ma ar rk ke et t f fa ac ct to or rs s t th ha at t m ma ay y d dr ri iv ve e a a b ba an nk k͛ ͛s s s st tr ra at te eg gy y i in nc cl lu ud de e t th he e f fo ol ll lo ow wi in ng g: :
y y C Co om mp pe et ti it ti io on n Ͷ Ͷ S St tu ud di ie es s s sh ho ow w t th ha at t c co om mp pe et ti it ti iv ve e p pr re es ss su ur re e i is s t th he e c ch hi ie ef f d dr ri iv vi in ng g f fo or rc ce e b be eh hi in nd d
i in nc cr re ea as si in ng g u us se e o of f I In nt te er rn ne et t b ba an nk ki in ng g t te ec ch hn no ol lo og gy y, , r ra an nk ki in ng g a ah he ea ad d o of f c co os st t r re ed du uc ct ti io on n a an nd d
r re ev ve en nu ue e e en nh ha an nc ce em me en nt t, , i in n s se ec co on nd d a an nd d t th hi ir rd d p pl la ac ce e r re es sp pe ec ct ti iv ve el ly y. . B Ba an nk ks s s se ee e I In nt te er rn ne et t
b ba an nk ki in ng g a as s a a w wa ay y t to o k ke ee ep p e ex xi is st ti in ng g c cu us st to om me er rs s a an nd d a at tt tr ra ac ct t n ne ew w o on ne es s t to o t th he e b ba an nk k. .
y y C Co os st t E Ef ff fi ic ci ie en nc ci ie es s Ͷ Ͷ N Na at ti io on na al l b ba an nk ks s c ca an n d de el li iv ve er r b ba an nk ki in ng g s se er rv vi ic ce es s o on n t th he e I In nt te er rn ne et t a at t
t tr ra an ns sa ac ct ti io on n c co os st ts s f fa ar r l lo ow we er r t th ha an n t tr ra ad di it ti io on na al l b br ri ic ck k- -a an nd d- -m mo or rt ta ar r b br ra an nc ch he es s. . T Th he e a ac ct tu ua al l c co os st ts s
t to o e ex xe ec cu ut te e a a t tr ra an ns sa ac ct ti io on n w wi il ll l v va ar ry y d de ep pe en nd di in ng g o on n t th he e d de el li iv ve er ry y c ch ha an nn ne el l u us se ed d. . F Fo or r e ex xa am mp pl le e, ,
a ac cc co or rd di in ng g t to o B Bo oo oz z, , A Al ll le en n & & H Ha am mi il lt to on n, , a as s o of f m mi id d- - 1 19 99 99 9, , t th he e c co os st t t to o d de el li iv ve er r m ma an nu ua al l
t tr ra an ns sa ac ct ti io on ns s a at t a a b br ra an nc ch h w wa as s t ty yp pi ic ca al ll ly y m mo or re e t th ha an n a a d do ol ll la ar r, , A AT TM M a an nd d c ca al ll l c ce en nt te er r
t tr ra an ns sa ac ct ti io on ns s c co os st t a ab bo ou ut t 2 25 5 c ce en nt ts s, , a an nd d I In nt te er rn ne et t t tr ra an ns sa ac ct ti io on ns s c co os st t a ab bo ou ut t a a p pe en nn ny y. . T Th he es se e
c co os st ts s a ar re e e ex xp pe ec ct te ed d t to o c co on nt ti in nu ue e t to o d de ec cl li in ne e. .
N Na at ti io on na al l b ba an nk ks s h ha av ve e s si ig gn ni if fi ic ca an nt t r re ea as so on ns s t to o d de ev ve el lo op p t th he e t te ec ch hn no ol lo og gi ie es s t th ha at t w wi il ll l h he el lp p t th he em m
d de el li iv ve er r b ba an nk ki in ng g p pr ro od du uc ct ts s a an nd d s se er rv vi ic ce es s b by y t th he e m mo os st t c co os st t- -e ef ff fe ec ct ti iv ve e c ch ha an nn ne el ls s. . M Ma an ny y
b ba an nk ke er rs s b be el li ie ev ve e t th ha at t s sh hi if ft ti in ng g o on nl ly y a a s sm ma al ll l p po or rt ti io on n o of f t th he e e es st ti im ma at te ed d 1 19 9- -b bi il ll li io on n p pa ay ym me en nt ts s

16

m ma ai il le ed d a an nn nu ua al ll ly y i in n t th he e U U. .S S. . t to o e el le ec ct tr ro on ni ic c d de el li iv ve er ry y c ch ha an nn ne el ls s c co ou ul ld d s sa av ve e b ba an nk ks s a an nd d o ot th he er r
b bu us si in ne es ss se es s s su ub bs st ta an nt ti ia al l s su um ms s o of f m mo on ne ey y. . H Ho ow we ev ve er r, , n na at ti io on na al l b ba an nk ks s s sh ho ou ul ld d u us se e c ca ar re e i in n
m ma ak ki in ng g p pr ro od du uc ct t d de ec ci is si io on ns s. . M Ma an na ag ge em me en nt t s sh ho ou ul ld d i in nc cl lu ud de e i in n t th he ei ir r d de ec ci is si io on n m ma ak ki in ng g t th he e
d de ev ve el lo op pm me en nt t a an nd d o on ng go oi in ng g c co os st ts s a as ss so oc ci ia at te ed d w wi it th h a a n ne ew w p pr ro od du uc ct t o or r s se er rv vi ic ce e, , i in nc cl lu ud di in ng g t th he e
t te ec ch hn no ol lo og gy y, , m ma ar rk ke et ti in ng g, , m ma ai in nt te en na an nc ce e, , a an nd d c cu us st to om me er r s su up pp po or rt t f fu un nc ct ti io on ns s. . T Th hi is s w wi il ll l h he el lp p
m ma an na ag ge em me en nt t e ex xe er rc ci is se e d du ue e d di il li ig ge en nc ce e, , m ma ak ke e m mo or re e i in nf fo or rm me ed d d de ec ci is si io on ns s, , a an nd d m me ea as su ur re e t th he e
s su uc cc ce es ss s o of f t th he ei ir r b bu us si in ne es ss s v ve en nt tu ur re e. .
y y G Ge eo og gr ra ap ph hi ic ca al l R Re ea ac ch h Ͷ Ͷ I In nt te er rn ne et t b ba an nk ki in ng g a al ll lo ow ws s e ex xp pa an nd de ed d c cu us st to om me er r c co on nt ta ac ct t t th hr ro ou ug gh h
i in nc cr re ea as se ed d g ge eo og gr ra ap ph hi ic ca al l r re ea ac ch h a an nd d l lo ow we er r c co os st t d de el li iv ve er ry y c ch ha an nn ne el ls s. . I In n f fa ac ct t s so om me e b ba an nk ks s a ar re e
d do oi in ng g b bu us si in ne es ss s e ex xc cl lu us si iv ve el ly y v vi ia a t th he e I In nt te er rn ne et t Ͷ Ͷ t th he ey y d do o n no ot t h ha av ve e t tr ra ad di it ti io on na al l b ba an nk ki in ng g
o of ff fi ic ce es s a an nd d o on nl ly y r re ea ac ch h t th he ei ir r c cu us st to om me er rs s o on nl li in ne e. . O Ot th he er r f fi in na an nc ci ia al l i in ns st ti it tu ut ti io on ns s a ar re e u us si in ng g t th he e
I In nt te er rn ne et t a as s a an n a al lt te er rn na at ti iv ve e d de el li iv ve er ry y c ch ha an nn ne el l t to o r re ea ac ch h e ex xi is st ti in ng g c cu us st to om me er rs s a an nd d a at tt tr ra ac ct t n ne ew w
c cu us st to om me er rs s. .
y y B Br ra an nd di in ng g Ͷ Ͷ R Re el la at ti io on ns sh hi ip p b bu ui il ld di in ng g i is s a a s st tr ra at te eg gi ic c p pr ri io or ri it ty y f fo or r m ma an ny y n na at ti io on na al l b ba an nk ks s. . I In nt te er rn ne et t
b ba an nk ki in ng g t te ec ch hn no ol lo og gy y a an nd d p pr ro od du uc ct ts s c ca an n p pr ro ov vi id de e a a m me ea an ns s f fo or r n na at ti io on na al l b ba an nk ks s t to o d de ev ve el lo op p
a an nd d m ma ai in nt ta ai in n a an n o on ng go oi in ng g r re el la at ti io on ns sh hi ip p w wi it th h t th he ei ir r c cu us st to om me er rs s b by y o of ff fe er ri in ng g e ea as sy y a ac cc ce es ss s t to o a a
b br ro oa ad d a ar rr ra ay y o of f p pr ro od du uc ct ts s a an nd d s se er rv vi ic ce es s. . B By y c ca ap pi it ta al li iz zi in ng g o on n b br ra an nd d i id de en nt ti if fi ic ca at ti io on n a an nd d b by y
p pr ro ov vi id di in ng g a a b br ro oa ad d a ar rr ra ay y o of f f fi in na an nc ci ia al l s se er rv vi ic ce es s, , b ba an nk ks s h ho op pe e t to o b bu ui il ld d c cu us st to om me er r l lo oy ya al lt ty y, ,
c cr ro os ss s- -s se el ll l, , a an nd d e en nh ha an nc ce e r re ep pe ea at t b bu us si in ne es ss s. .
y y C Cu us st to om me er r D De em mo og gr ra ap ph hi ic cs s Ͷ Ͷ I In nt te er rn ne et t b ba an nk ki in ng g a al ll lo ow ws s n na at ti io on na al l b ba an nk ks s t to o o of ff fe er r a a w wi id de e a ar rr ra ay y
o of f o op pt ti io on ns s t to o t th he ei ir r b ba an nk ki in ng g c cu us st to om me er rs s. . S So om me e c cu us st to om me er rs s w wi il ll l r re el ly y o on n t tr ra ad di it ti io on na al l b br ra an nc ch he es s
t to o c co on nd du uc ct t t th he ei ir r b ba an nk ki in ng g b bu us si in ne es ss s. . F Fo or r m ma an ny y, , t th hi is s i is s t th he e m mo os st t c co om mf fo or rt ta ab bl le e w wa ay y f fo or r t th he em m
t to o t tr ra an ns sa ac ct t t th he ei ir r b ba an nk ki in ng g b bu us si in ne es ss s. . T Th ho os se e c cu us st to om me er rs s p pl la ac ce e a a p pr re em mi iu um m o on n p pe er rs so on n- -t to o- -
p pe er rs so on n c co on nt ta ac ct t. . O Ot th he er r c cu us st to om me er rs s a ar re e e ea ar rl ly y a ad do op pt te er rs s o of f n ne ew w t te ec ch hn no ol lo og gi ie es s t th ha at t a ar rr ri iv ve e i in n
t th he e m ma ar rk ke et tp pl la ac ce e. . T Th he es se e c cu us st to om me er rs s w we er re e t th he e f fi ir rs st t t to o o ob bt ta ai in n P PC Cs s a an nd d t th he e f fi ir rs st t t to o e em mp pl lo oy y
t th he em m i in n c co on nd du uc ct ti in ng g t th he ei ir r b ba an nk ki in ng g b bu us si in ne es ss s. . T Th he e d de em mo og gr ra ap ph hi ic cs s o of f b ba an nk ki in ng g c cu us st to om me er rs s w wi il ll l
c co on nt ti in nu ue e t to o c ch ha an ng ge e. . T Th he e c ch ha al ll le en ng ge e t to o n na at ti io on na al l b ba an nk ks s i is s t to o u un nd de er rs st ta an nd d t th he ei ir r c cu us st to om me er r

17

b ba as se e a an nd d f fi in nd d t th he e r ri ig gh ht t m mi ix x o of f d de el li iv ve er ry y c ch ha an nn ne el ls s t to o d de el li iv ve er r p pr ro od du uc ct ts s a an nd d s se er rv vi ic ce es s
p pr ro of fi it ta ab bl ly y t to o t th he ei ir r v va ar ri io ou us s m ma ar rk ke et t s se eg gm me en nt ts s. .

I IC CI IC CI I B Ba an nk k w wa as s t th he e f fi ir rs st t b ba an nk k t to o i in ni it ti ia at te e t th he e i in nt te er rn ne et t b ba an nk ki in ng g r re ev vo ol lu ut ti io on n i in n I In nd di ia a a as s e ea ar rl ly y a as s 1 19 99 97 7
u un nd de er r t th he e b br ra an nd d n na am me e ͚ ͚i in nf fi in ni it ty y͛ ͛. .
I In nt te er rn ne et t b ba an nk ki in ng g h ha as s g ga ai in ne ed d w wi id de e a ac cc ce ep pt ta an nc ce e i in nt te er rn na at ti io on na al ll ly y a an nd d s se ee em ms s t to o b be e f fa as st t c ca at tc ch hi in ng g u up p
i in n I In nd di ia a w wi it th h m mo or re e a an nd d m mo or re e b ba an nk ks s e en nt te er ri in ng g t th he e f fr ra ay y. .
A As s p pe er r I ID DC C e es st ti im ma at te es s, , t th he e t to ot ta al l n nu um mb be er r o of f r re eg gi is st te er re ed d u us se er rs s f fo or r I In nt te er rn ne et t b ba an nk ki in ng g i in n I In nd di ia a i is s o ov ve er r
t tw wo o m mi il ll li io on n. . B Bu ut t t th hi is s f fi ig gu ur re e n ne ee ed ds s t to o b be e a ad dj ju us st te ed d f fo or r d do or rm ma an nt t u us se er rs s a an nd d m mu ul lt ti ip pl le e a ac cc co ou un nt ts s ( (a a
u us se er r h ha av vi in ng g a ac cc co ou un nt ts s w wi it th h m mo or re e t th ha an n o on ne e b ba an nk k) ). . I In nd di ia a h ha as s a a l li it tt tl le e l le es ss s t th ha an n a a m mi il ll li io on n a ac ct ti iv ve e
I In nt te er rn ne et t b ba an nk ki in ng g u us se er rs s. . A An nd d t th ho ou ug gh h t th hi is s i is s j ju us st t 0 0. .0 09 96 6 p pe er rc ce en nt t o of f t th he e t to ot ta al l p po op pu ul la at ti io on n, , i it t
r re ep pr re es se en nt ts s 1 15 5 p pe er rc ce en nt t o of f t th he e I In nd di ia a͛ ͛s s I In nt te er rn ne et t u us se er r p po op pu ul la at ti io on n. . T Th hu us s, , i in nd di ic ca at ti in ng g t th ha at t t th he e c co on nc ce ep pt t
o of f I In nt te er rn ne et t b ba an nk ki in ng g i is s s su ur re el ly y c ca at tc ch hi in ng g o on n. .
I Im mp pr re es ss si iv ve e a as s t th he es se e f fi ig gu ur re es s m mi ig gh ht t b be e, , t th he e t tr ru ut th h i is s t th ha at t I In nd di ia a l la ag gs s b be eh hi in nd d o ot th he er r c co ou un nt tr ri ie es s i in n
I In nt te er rn ne et t b ba an nk ki in ng g. . I In n t th he e U US S, , t th he e n nu um mb be er r o of f c co om mm me er rc ci ia al l b ba an nk ks s w wi it th h t tr ra an ns sa ac ct ti io on na al l w we eb bs si it te es s i is s
1 1, ,2 27 75 5 o or r 1 12 2 p pe er rc ce en nt t o of f t th he e t to ot ta al l n nu um mb be er r o of f b ba an nk ks s. . O Of f t th he es se e, , s se ev ve en n c co ou ul ld d b be e c ca al ll le ed d ͚ ͚v vi ir rt tu ua al l
b ba an nk ks s. .͛ ͛ T Te en n t tr ra ad di it ti io on na al l b ba an nk ks s h ha av ve e e es st ta ab bl li is sh he ed d I In nt te er rn ne et t b br ra an nc ch he es s o or r d di iv vi is si io on ns s t th ha at t o op pe er ra at te e
u un nd de er r a a u un ni iq qu ue e b br ra an nd d n na am me e. . A At t p pr re es se en nt t, , i in n t th he e U US S a ap pp pr ro ox xi im ma at te el ly y 7 78 8 p pe er rc ce en nt t o of f a al ll l c co om mm me er rc ci ia al l
b ba an nk ks s w wi it th h a as ss se et ts s m mo or re e t th ha an n $ $5 5 b bi il ll li io on n, , 4 43 3 p pe er rc ce en nt t o of f b ba an nk ks s w wi it th h $ $5 50 00 0 m mi il ll li io on n t to o $ $5 5 b bi il ll li io on n i in n
a as ss se et ts s, , a an nd d 1 10 0 p pe er rc ce en nt t o of f b ba an nk ks s u un nd de er r $ $5 50 00 0 m mi il ll li io on n i in n a as ss se et ts s h ha av ve e t tr ra an ns sa ac ct ti io on na al l w we eb bs si it te es s. .
F Fr ro om m t th he e A As si ia an n m ma ar rk ke et t e ex xp pe er ri ie en nc ce e, , i it t i is s c cl le ea ar r t th ha at t I In nt te er rn ne et t b ba an nk ki in ng g i is s h he er re e t to o s st ta ay y a an nd d w wi il ll l b be e a a
m ma aj jo or r c ch ha an nn ne el l t to o a ac cq qu ui ir re e a an nd d s se er rv vi ic ce e c cu us st to om me er rs s. . M Ma ar rk ke et ts s l li ik ke e K Ko or re ea a a an nd d S Si in ng ga ap po or re e h ha av ve e n ne ea ar rl ly y
1 10 0 p pe er rc ce en nt t o of f t th he ei ir r p po op pu ul la at ti io on n b ba an nk ki in ng g o ov ve er r t th he e I In nt te er rn ne et t. . T Th ho ou ug gh h, , t th he es se e m ma ar rk ke et ts s a ar re e w wa ay y a ah he ea ad d
o of f I In nd di ia a b bo ot th h i in n t te er rm ms s o of f I In nt te er rn ne et t p pe en ne et tr ra at ti io on n a an nd d o on nl li in ne e b ba an nk ki in ng g p pe en ne et tr ra at ti io on n, , I In nd di ia a i is s a a b bi ig g
p po ot te en nt ti ia al l m ma ar rk ke et t a an nd d i is s f fa as st t c ca at tc ch hi in ng g u up p w wi it th h i it ts s A As si ia an n c co ou un nt te er rp pa ar rt ts s. .


18

3 3. .2 2 T Th he e I In nd di ia an n S Sa ag ga a: :
I In n c co on nt tr ra as st t, , I In nd di ia an n b ba an nk ks s h ha av ve e a an n i in ns si ig gn ni if fi ic ca an nt t I In nt te er rn ne et t b ba an nk ki in ng g r re ec co or rd d. . I IC CI IC CI I B Ba an nk k k ki ic ck ke ed d o of ff f
o on nl li in ne e b ba an nk ki in ng g w wa ay y b ba ac ck k i in n 1 19 99 96 6 a an nd d a a h ho os st t o of f o ot th he er r b ba an nk ks s s so oo on n f fo ol ll lo ow we ed d s su ui it t. . B Bu ut t e ev ve en n f fo or r t th he e
I In nt te er rn ne et t a as s a a w wh ho ol le e, , 1 19 99 96 6 t to o 1 19 99 98 8 m ma ar rk ke ed d t th he e a ad do op pt ti io on n p ph ha as se e, , w wh hi il le e u us sa ag ge e i in nc cr re ea as se ed d o on nl ly y i in n
1 19 99 99 9Ͷ Ͷd du ue e t to o l lo ow we er r I IS SP P o on nl li in ne e c ch ha ar rg ge es s, , i in nc cr re ea as se ed d P PC C p pe en ne et tr ra at ti io on n a an nd d a a t te ec ch h- -f fr ri ie en nd dl ly y
a at tm mo os sp ph he er re e. .
A Af ft te er r I IC CI IC CI I, , C Ci it ti ib ba an nk k, , I In nd du us sI In nd d B Ba an nk k a an nd d H HD DF FC C B Ba an nk k a an nd d T Ti im me es sb ba an nk k ( (n no ow w p pa ar rt t o of f H HD DF FC C B Ba an nk k) ), ,
w we er re e t th he e e ea ar rl ly y o on ne es s t to o b bi it te e t th he e t te ec ch hn no ol lo og gy y b bu ul ll le et t i in n 1 19 99 99 9. . I In ni it ti ia al ll ly y t th he e N Ne et t b ba an nk ki in ng g f fa ac ci il li it ty y w wa as s
p pr ro ov vi id de ed d i in n o or rd de er r t to o m me ee et t t th he e i in nf fo or rm ma at ti io on n r re eq qu ui ir re em me en nt ts s o of f t th he e c cu us st to om me er rs s a an nd d g gr ra ad du ua al ll ly y i it t
v ve en nt tu ur re ed d i in nt to o f fu un nd d t tr ra an ns sf fe er rs s a an nd d t th hi ir rd d p pa ar rt ty y t tr ra an ns sf fe er rs s. .
T Th ho ou ug gh h a ad do op pt ti io on n o of f I In nt te er rn ne et t b ba an nk ki in ng g b by y I In nd di ia an n b ba an nk ks s a an nd d t th he ei ir r c cu us st to om me er rs s w wo ou ul ld d n no ot t s se et t t th he e
A Ar ra ab bi ia an n S Se ea a o on n f fi ir re e, , n no o o on ne e c ca an n d de en ny y t th he e o ob bv vi io ou us s b be en ne ef fi it ts s t th ha at t t th hi is s s se er rv vi ic ce e o of ff fe er rs s. . C Co os st ts s o of f
b ba an nk ki in ng g s se er rv vi ic ce e t th hr ro ou ug gh h t th he e I In nt te er rn ne et t a am mo ou un nt t t to o a a f fr ra ac ct ti io on n o of f t th he e c co os st ts s t th hr ro ou ug gh h c co on nv ve en nt ti io on na al l
m me et th ho od ds s. . I In nd du us st tr ry y e es st ti im ma at te es s a as ss su um me e t te el ll le er r c co os st t a at t R Re e 1 1 p pe er r t tr ra an ns sa ac ct ti io on n, , A AT TM M t tr ra an ns sa ac ct ti io on n c co os st ts s
a at t R Re e 0 0. .4 45 5, , p ph ho on ne e b ba an nk ki in ng g a at t R Re e 0 0. .3 35 5, , d de eb bi it t c ca ar rd ds s a at t R Re e 0 0. .2 20 0 a an nd d I In nt te er rn ne et t b ba an nk ki in ng g a at t R Re e 0 0. .1 10 0 p pe er r
t tr ra an ns sa ac ct ti io on n. .
T Th he e p pr ro oh hi ib bi it ti iv ve e c co os st ts s o of f r re ea al l e es st ta at te e w wo ou ul ld d a al lw wa ay ys s m ma ak ke e I In nt te er rn ne et t b ba an nk ki in ng g a a m mu uc ch h m mo or re e v vi ia ab bl le e
o op pt ti io on n i in n t th he e l lo on ng g r ru un n t th ha an n p ph hy ys si ic ca al l b ba an nk ks s. . I In n t to od da ay y͛ ͛s s e en nv vi ir ro on nm me en nt t b be es si id de es s t th he ei ir r p ph hy ys si ic ca al l
b br ra an nc ch he es s, , b ba an nk ks s n ne ee ed d t to o g gr ro ow w n no on n- -b br ra an nc ch h d de el li iv ve er ry y n ne et tw wo or rk ks s a as s a a p pa ar rt t o of f t th he ei ir r g gr ro ow wt th h s st tr ra at te eg gy y. .
A AT TM Ms s a ar re e c cu ur rr re en nt tl ly y t th he e h ho ot t f fa av vo or ri it te e f fo or r m mo os st t b ba an nk ks s, , b bu ut t I In nt te er rn ne et t b ba an nk ki in ng g d de ef fi in ni it te el ly y h ha as s t th he e
p po ot te en nt ti ia al l t to o l le ea av ve e t th he e r re es st t b be eh hi in nd d. . T Th he er re ef fo or re e, , o on n t th he e w wh ho ol le e, , I In nt te er rn ne et t b ba an nk ki in ng g i in nc cr re ea as se es s
o op pe er ra at ti io on na al l e ef ff fi ic ci ie en nc ci ie es s a an nd d r re ed du uc ce es s c co os st ts s, , b be es si id de es s g gi iv vi in ng g a a p pl la at tf fo or rm m f fo or r o of ff fe er ri in ng g v va al lu ue e a ad dd de ed d
s se er rv vi ic ce es s t to o t th he e c cu us st to om me er r, , t th he er re eb by y f fu ul lf fi il ll li in ng g a al ll l t th he e e es ss se en nt ti ia al l p pr re er re eq qu ui is si it te es s f fo or r a a f fl lo ou ur ri is sh hi in ng g
b ba an nk ki in ng g i in nd du us st tr ry y. .


19

3 3. .3 3 T Th he e P PS SU U l le et th ha ar rg gy y: :
L Li ik ke e i in n a al ll l f fo or rm ms s o of f t te ec ch hn no ol lo og gy y i in nn no ov va at ti io on ns s, , P PS SU U b ba an nk ks s h ha av ve e r re em ma ai in ne ed d l la ag gg ga ar rd ds s i in n t th he e r ra ac ce e f fo or r
a ad do op pt ti in ng g I In nt te er rn ne et t b ba an nk ki in ng g p pr ra ac ct ti ic ce es s. . T Th he er re e a ar re e v ve er ry y f fe ew w n na at ti io on na al li iz ze ed d b ba an nk ks s l li ik ke e S St ta at te e B Ba an nk k o of f
I In nd di ia a, , P Pu un nj ja ab b N Na at ti io on na al l B Ba an nk k, , B Ba an nk k o of f B Ba ar ro od da a, , A Al ll la ah ha ab ba ad d B Ba an nk k, , a an nd d U Un ni io on n B Ba an nk k o of f I In nd di ia a, ,
S Sy yn nd di ic ca at te e B Ba an nk k a an nd d B Ba an nk k o of f I In nd di ia a t th ha at t o of ff fe er r I In nt te er rn ne et t b ba an nk ki in ng g s se er rv vi ic ce es s. . S SB BI I͛ ͛s s I In nt te er rn ne et t b ba an nk ki in ng g
i in ni it ti ia at ti iv ve e, , l la au un nc ch he ed d i in n J Ju ul ly y 2 20 00 01 1, , i is s i in n f fa ac ct t d do oi in ng g q qu ui it te e w we el ll l a an nd d h ha as s o ov ve er r 1 18 8, ,0 00 00 0 r re eg gi is st te er re ed d
c cu us st to om me er rs s a ac cr ro os ss s 1 15 50 0 b br ra an nc ch he es s. . T Th he e e en nt th hu us si ia as st ti ic c r re es sp po on ns se e h ha as s e en nc co ou ur ra ag ge ed d t th he e S SB BI I
m ma an na ag ge em me en nt t t to o e ex xt te en nd d t th he e s se er rv vi ic ce e t to o a an n a ad dd di it ti io on na al l 5 50 00 0 b br ra an nc ch he es s. . B Bu ut t d de es sp pi it te e p po os si it ti iv ve e n ne ew ws s
l li ik ke e t th hi is s, , P PS SU U b ba an nk ks s s st ti il ll l h ha av ve e a a l lo ot t o of f c ca at tc ch hi in ng g u up p t to o d do o o on n t th he e I In nt te er rn ne et t b ba an nk ki in ng g s se er rv vi ic ce es s f fr ro on nt t. .
S So om me e a ar rg gu ue e t th ha at t t th he e p pr ri im ma ar ry y r re ea as so on n p pr re ev ve en nt ti in ng g P PS SU Us s f fr ro om m i in nc cr re ea as si in ng g t th he ei ir r o on nl li in ne e b ba an nk ki in ng g
s se er rv vi ic ce es s r re ea ac ch h h ha as s b be ee en n a an n a ab bs se en nc ce e o of f a a l le eg ga al l f fr ra am me ew wo or rk k t to o b ba ac ck k u up p, , a an nd d r re eg gu ul la at te e i in nt te er rn ne et t
b ba an nk ki in ng g o op pe er ra at ti io on ns s i in n t th he e c co ou un nt tr ry y. . T Th ho ou ug gh h t th he e I In nf fo or rm ma at ti io on n T Te ec ch hn no ol lo og gy y A Ac ct t 2 20 00 00 0 a at tt te em mp pt te ed d t to o
a ad dd dr re es ss s a a n nu um mb be er r o of f e e- -c co om mm me er rc ce e r re eg gu ul la at to or ry y i is ss su ue es s, , t th he er re e s st ti il ll l a ar re e n no ot t s se ev ve er ra al l g gr re ey y a ar re ea as s w wh hi ic ch h
h ha av ve e b be ee en n s sp pe el lt t o ou ut t p pr ro op pe er rl ly y, , n no or r h ha av ve e t th he e c co ou ur rt ts s s su ug gg ge es st te ed d w wo or rk ka ab bl le e m mo od de es s o of f
i im mp pl le em me en nt ta at ti io on n. .
H Ho ow we ev ve er r, , n no ot t m ma an ny y a ar re e w wi il ll li in ng g t to o b bu uy y t th he e a ar rg gu um me en nt t t th ha at t i it t͛ ͛s s t th he e l la ac ck k o of f r re eg gu ul la at ti io on ns s t th ha at t i is s
p pr re ev ve en nt ti in ng g t th he e P PS SU U b ba an nk ks s f fr ro om m t ta ak ki in ng g t th he e I In nt te er rn ne et t p pl lu un ng ge e. . M Mo or re e t th ha an n a a l la ac ck k o of f r re eg gu ul la at to or ry y
f fr ra am me ew wo or rk k, , i it t i is s l la ac ck k o of f z ze ea al l a an nd d a a m mi in nd ds se et t a at tt tu un ne ed d t to ow wa ar rd ds s r re es si is st ti in ng g a an ny y n ne ew w t te ec ch hn no ol lo og gy y t th ha at t i is s
h ho ol ld di in ng g b ba ac ck k t th he e n na at ti io on na al li iz ze ed d b ba an nk ks s. .
T Th he e a av ve er ra ag ge e c cu us st to om me er r p pr ro of fi il le e o of f P PS SU U b ba an nk ks s i is s a al ls so o c co om mf fo or rt ta ab bl le e w wi it th h t th he e t tr ra ad di it ti io on na al l b ba an nk ki in ng g
s sy ys st te em m a an nd d i is s n no ot t t to oo o k ke ee en n o on n a ad do op pt ti in ng g a an n o on nl li in ne e m mo od de el l. . T Ty yp pi ic ca al ll ly y, , m mo os st t P PS SU U b ba an nk ks s h ha av ve e t th he e
m ma aj jo or ri it ty y o of f t th he ei ir r c cu us st to om me er r b ba as se e i in n t th he e s sm ma al ll le er r c ci it ti ie es s o or r t to ow wn ns s a an nd d e ev ve en n i in n r re em mo ot te e v vi il ll la ag ge es s. . E Ev ve en n
i in n b bi ig gg ge er r c ci it ti ie es s, , a a l la ar rg ge e p pr ro op po or rt ti io on n o of f t th he ei ir r c cu us st to om me er rs s a ar re e e ei it th he er r s se en ni io or r c ci it ti iz ze en ns s o or r a at t l le ea as st t 5 50 0+ +
w wh ho o h ha av ve e a a n na at tu ur ra al l a av ve er rs si io on n t to ow wa ar rd ds s a ad do op pt ti in ng g n ne ew w t te ec ch hn no ol lo og gy y. . T Th hi is s n no ot t t th he e c ca as se e w wi it th h p pr ri iv va at te e
o or r M MN NC C b ba an nk ks s, , w wh he er re e t th he e c cl li ie en nt te el le e i is s m mo os st tl ly y u ur rb ba an n- -b ba as se ed d f fa al ll li in ng g i in n t th he e 2 20 0- -4 40 0 a ag ge e g gr ro ou up p a an nd d
w wh ho o h ha av ve e a a h hi ig gh he er r e ex xp po os su ur re e t to o t te ec ch hn no ol lo og gy y. .

20

E Ev ve en n t th he e I ID DC C s su ur rv ve ey y s se ee em ms s t to o c co on nf fi ir rm m t th hi is s p pr re em mi is se e. . A Am mo on ng g t th he e e el li it te e I In nt te er rn ne et t b ba an nk ki in ng g u us se er rs s, ,
t th ha at t i is s, , t th ho os se e c cu us st to om me er rs s w wh ho o b be el lo on ng g t to o S So oc ci io o- -E Ec co on no om mi ic c C Cl la as ss s A A1 1 ( (S SE EC C A A1 1) ) i in n t th he e t to op p f fi iv ve e c ci it ti ie es s, , i it t
h ha as s b be ee en n f fo ou un nd d t th ha at t p pe eo op pl le e a ac cc ce es ss s t th he ei ir r a ac cc co ou un nt t t th hr ro ou ug gh h t th he e I In nt te er rn ne et t o on nc ce e e ev ve er ry y w we ee ek k. .
S Si im mi il la ar rl ly y u us se er rs s v vi is si it t t th he ei ir r A AT TM M c ce en nt tr re e o on n a an n a av ve er ra ag ge e o of f t tw wo o t ti im me es s p pe er r w we ee ek k. . T Th he e w wo or rk kp pl la ac ce e
h ha ap pp pe en ns s t to o b be e t th he e m mo os st t f fa av vo or re ed d p pl la ac ce e t to o a ac cc ce es ss s I In nt te er rn ne et t f fo or r b ba an nk ki in ng g p pu ur rp po os se es s. . T Th he e h ho om me e
c co om me es s a a c cl lo os se e s se ec co on nd d w wh hi il le e c cy yb be er rc ca af fé és s t ta ak ke e t th he e t th hi ir rd d p pl la ac ce e. . A AT TM M i in n t th he e c cl lo os se e v vi ic ci in ni it ty y t to o t th he e
o of ff fi ic ce e i is s t th he e m mo os st t p pr re ef fe er rr re ed d p pl la ac ce e a am mo on ng g u us se er rs s f fo or r b ba an nk ki in ng g. . T Th he e u us se er rs s ( (2 24 4 p pe er rc ce en nt t) ) w wh ho o a ac cc ce es ss s
t th he e A AT TM M n ne ea ar r t th he ei ir r o of ff fi ic ce e m mo os st tl ly y g go o d du ur ri in ng g t th he e f fi ir rs st t h ha al lf f o of f t th he e d da ay y, , b be et tw we ee en n 9 9 A AM M t to o 1 12 2 P PM M, ,
b bu ut t m mo os st t p pr re ef fe er rr re ed d t ti im me e b by y a al ll l u us se er rs s ( (4 41 1 p pe er rc ce en nt t) ) i is s b be et tw we ee en n 6 6- -9 9 P PM M. .
3 3. .4 4 B Bo ou uq qu ue et t s st tr ra at te eg gy y: :
T Th hi is s, , p pr ro ob ba ab bl ly y, , e ex xp pl la ai in ns s w wh hy y m mo or re e a an nd d m mo or re e b ba an nk ks s a ar re e l lo oo ok ki in ng g a at t I In nt te er rn ne et t b ba an nk ki in ng g a as s a an no ot th he er r
a at tt tr ra ac ct ti iv ve e a ad dd di it ti io on n t to o t th he ei ir r b bo ou uq qu ue et t o of f d de el li iv ve er ry y c ch ha an nn ne el ls s. . A At t l le ea as st t i in n u ur rb ba an n a ar re ea as s, , A AT TM Ms s a ar re e
a al lr re ea ad dy y f fa as st t b be ec co om mi in ng g t th he e m mo os st t p po op pu ul la ar r m mo od de e o of f b ba an nk ki in ng g, , w wh hi il le e p ph ho on ne e b ba an nk ki in ng g a an nd d m mo ob bi il le e
b ba an nk ki in ng g a ar re e a al ls so o o on n t th he e u up ps sw wi in ng g a as s t th he e u us se er r b ba as se e g gr ro ow ws s. . I In nt te er rn ne et t b ba an nk ki in ng g n no ow w s se ee em ms s t to o b be e t th he e
p pe er rf fe ec ct t m mo od de el l t to o c co om mp pl le em me en nt t t th he e w wh ho ol le e s sy ys st te em m. .
W Wh ha at t i is s u ul lt ti im ma at te el ly y e em me er rg gi in ng g i is s t th ha at t t th ho ou ug gh h t th he er re e i is s c ce er rt ta ai in nl ly y a a h hi ig gh h l le ev ve el l o of f i im mp po or rt ta an nc ce e a at tt ta ac ch he ed d
t to o I In nt te er rn ne et t b ba an nk ki in ng g, , i it t i is s a at t p pr re es se en nt t n no ot t n ne ec ce es ss sa ar ri il ly y a a p pr ri io or ri it ty y f fo or r a al ll l b ba an nk ks s. . A As s f fa ar r a as s b ba an nk ks s a ar re e
c co on nc ce er rn ne ed d, , m mi ig gr ra at ti in ng g c cu us st to om me er rs s t to o a an ny y s se el lf f- -d di ir re ec ct te ed d c ch ha an nn ne el l i is s t th he e m ma ai in n g go oa al l. . H Ho ow we ev ve er r, , t th he e
f fu ut tu ur re e o of f b ba an nk ki in ng g w wi il ll l b be e o on ne e i in n w wh hi ic ch h c cu us st to om me er rs s c ca an n a ad dd dr re es ss s m mo os st t o of f t th he ei ir r n ne ee ed ds s t th hr ro ou ug gh h s se el lf f- -
d di ir re ec ct te ed d m me ea an ns s a an nd d t th he e k ke ey y d di if ff fe er re en nt ti ia at to or r w wi il ll l b be e h ho ow w e ef ff fe ec ct ti iv ve e a a b ba an nk k i is s i in n g ge et tt ti in ng g i it ts s
c cu us st to om me er rs s o on nl li in ne e a an nd d d de er ri iv vi in ng g m me ea as su ur ra ab bl le e v va al lu ue e f fr ro om m t th hi is s p pr re es se en nc ce e. . O On ne e c ca an n s su um m u up p t th he e w wh ho ol le e
I In nt te er rn ne et t b ba an nk ki in ng g s sc ce en na ar ri io o w wi it th h t th he e a ad da ag ge e, ,
͞ ͞F Fo or r w wh hi il le e w wi in nn ne er rs s m ma ay y n no ot t s se ee e m ma as ss si iv ve e g ga ai in ns s, , t th he e l lo os se er rs s w wi il ll l f fa ad de e f fr ro om m v vi ie ew w a as s t th he ei ir r a ab bi il li it ty y t to o
c co om mp pe et te e i is s e er ro od de ed d w wi it th h e ev ve er ry y m mo ou us se e c cl li ic ck k. .͟ ͟



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3 3. .5 5 B Ba an nk ks s͛ ͛ k ke ey y p pa ai in n p po oi in nt ts s a an nd d o op pp po or rt tu un ni it ti ie es s i in n i in nt te er rn ne et t b ba an nk ki in ng g: :











4 4. . M MO OB BI IL LE E B BA AN NK KI IN NG G: :
M Mo ob bi il le e b ba an nk ki in ng g i is s a a w wa ay y f fo or r t th he e c cu us st to om me er r t to o p pe er rf fo or rm m b ba an nk ki in ng g a ac ct ti io on ns s o on n h hi is s o or r h he er r c ce el ll l p ph ho on ne e o or r
o ot th he er r m mo ob bi il le e d de ev vi ic ce e. . I It t i is s a a q qu ui it te e p po op pu ul la ar r m me et th ho od d o of f b ba an nk ki in ng g t th ha at t f fi it ts s i in n w we el ll l w wi it th h a a b bu us sy y, ,
t te ec ch hn no ol lo og gi ic ca al ll ly y o or ri ie en nt te ed d l li if fe es st ty yl le e. . I It t m mi ig gh ht t a al ls so o b be e r re ef fe er rr re ed d t to o a as s M M- -b ba an nk ki in ng g o or r S SM MS S b ba an nk ki in ng g. .
T Th he e a am mo ou un nt t o of f b ba an nk ki in ng g y yo ou u a ar re e a ab bl le e t to o d do o o on n y yo ou ur r c ce el ll l p ph ho on ne e v va ar ri ie es s d de ep pe en nd di in ng g o on n t th he e b ba an nk ki in ng g
i in ns st ti it tu ut ti io on n y yo ou u u us se e. . S So om me e b ba an nk ks s o of ff fe er r o on nl ly y t th he e o op pt ti io on n o of f t te ex xt t a al le er rt ts s, , w wh hi ic ch h a ar re e m me es ss sa ag ge es s s se en nt t t to o
y yo ou ur r c ce el ll l p ph ho on ne e t th ha at t a al le er rt t y yo ou u t to o a ac ct ti iv vi it ty y o on n y yo ou ur r a ac cc co ou un nt t s su uc ch h a as s d de ep po os si it ts s, , w wi it th hd dr ra aw wa al ls s, , a an nd d
A AT TM M o or r c cr re ed di it t c ca ar rd d u us se e. . T Th hi is s i is s t th he e m mo os st t b ba as si ic c t ty yp pe e o of f m mo ob bi il le e b ba an nk ki in ng g. .
Internet banking user experience &
functionality not comprehensive
Internet banking solution not stable/
scalable/ flexible enough
Consumer confidence in security starts
to reduce
Internet banking processes not realized
as STP
Enhancing internet banking to become
a sales channel
Develop products and services
customized to the internet channel
Internet banking can be a driving part of
an integrated channel mix

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A A m mo or re e i in nv vo ol lv ve ed d t ty yp pe e o of f m mo ob bi il le e b ba an nk ki in ng g a al ll lo ow ws s t th he e u us se er r t to o l lo og g i in nt to o h hi is s o or r h he er r a ac cc co ou un nt t f fr ro om m a a
c ce el ll l p ph ho on ne e, , a an nd d t th he en n u us se e t th he e p ph ho on ne e t to o m ma ak ke e p pa ay ym me en nt ts s, , c ch he ec ck k b ba al la an nc ce es s, , t tr ra an ns sf fe er r m mo on ne ey y
b be et tw we ee en n a ac cc co ou un nt ts s, , n no ot ti if fy y t th he e b ba an nk k o of f a a l lo os st t o or r s st to ol le en n c cr re ed di it t c ca ar rd d, , s st to op p p pa ay ym me en nt t o on n a a c ch he ec ck k, ,
r re ec ce ei iv ve e a a n ne ew w P PI IN N, , o or r v vi ie ew w a a m mo on nt th hl ly y s st ta at te em me en nt t, , a am mo on ng g o ot th he er r t tr ra an ns sa ac ct ti io on ns s. . T Th hi is s t ty yp pe e o of f
b ba an nk ki in ng g i is s m me ea an nt t t to o b be e m mo or re e c co on nv ve en ni ie en nt t f fo or r t th he e c co on ns su um me er r t th ha an n h ha av vi in ng g t to o p ph hy ys si ic ca al ll ly y g go o i in nt to o a a
b ba an nk k, , l lo og g o on n f fr ro om m t th he ei ir r h ho om me e c co om mp pu ut te er r, , o or r m ma ak ke e a a p ph ho on ne e c ca al ll l. . W Wh hi il le e a al ll l o of f t th hi is s i is s t tr ru ue e, , s so om me e a ar re e
c co on nc ce er rn ne ed d a ab bo ou ut t t th he e s se ec cu ur ri it ty y o of f m mo ob bi il le e b ba an nk ki in ng g. .
M Mo os st t e ex xp pe er rt ts s a ad dv vi is se e a ag ga ai in ns st t p pe er rf fo or rm mi in ng g a an ny y l la ar rg ge e t tr ra an ns sa ac ct ti io on ns s o ov ve er r m mo ob bi il le e b ba an nk ki in ng g, , w wh hi ic ch h i is s
g go oo od d a ad dv vi ic ce e. . H Ho ow we ev ve er r, , i it t i is s e eq qu ua al ll ly y i im mp po or rt ta an nt t t to o u us se e a an n a al lp ph ha an nu um me er ri ic c p pa as ss sw wo or rd d a an nd d t to o k ke ee ep p
y yo ou ur r P PI IN N s sa af fe e. . C Ch ha an ng ge e y yo ou ur r p pa as ss sw wo or rd d o of ft te en n, , a an nd d d do o n no ot t u us se e y yo ou ur r p pe et ts s' ' n na am me es s, , y yo ou ur r c ch hi il ld d' 's s
n na am me e, , o or r a an ny y b bi ir rt th hd da ay ys s. . T Th hi is s a ad dv vi ic ce e a ap pp pl li ie es s t to o a al ll l p pa as ss sw wo or rd ds s, , n no ot t j ju us st t t th ho os se e u us se ed d f fo or r m mo ob bi il le e
b ba an nk ki in ng g. . T Th ho ou ug gh h y yo ou u a ar re e l lo og gg gi in ng g o on n t to o a a s se ec cu ur re e s se er rv ve er r a at t t th he e b ba an nk k t th hr ro ou ug gh h y yo ou ur r c ce el ll l p ph ho on ne e, , y yo ou u
n ne ee ed d t to o d do o y yo ou ur r p pa ar rt t t to o p pr ro ot te ec ct t y yo ou ur r i in nf fo or rm ma at ti io on n. . F Fo or r t th hi is s r re ea as so on n, , m ma an ny y b ba an nk ks s a ar re e n no ow w s se en nd di in ng g
o on ne e- -t ti im me e u us se e p pa as ss sw wo or rd ds s f fo or r a an n e ex xt tr ra a s st te ep p i in n s se ec cu ur ri it ty y. .
A A o on ne e- -t ti im me e u us se e p pa as ss sw wo or rd d m mi ig gh ht t b be e s se en nt t t to o a a c ce el ll l p ph ho on ne e o or r o ot th he er r d de ev vi ic ce e w wh he en n y yo ou u w wi is sh h t to o l lo og g
i in nt to o y yo ou ur r a ac cc co ou un nt t. . Y Yo ou u w wi il ll l t th he en n u us su ua al ll ly y n ne ee ed d t to o e en nt te er r b bo ot th h t th he e p pa as ss sw wo or rd d y yo ou u h ha av ve e a al lr re ea ad dy y s se et t, ,
a al lo on ng g w wi it th h t th he e o on ne e- -t ti im me e u us se e p pa as ss sw wo or rd d, , w wi it th hi in n a a c ce er rt ta ai in n p pe er ri io od d o of f t ti im me e. . T Th he e o on ne e- -t ti im me e u us se e
p pa as ss sw wo or rd d e ex xp pi ir re es s, , n na at tu ur ra al ll ly y, , a af ft te er r i it t i is s u us se ed d o on nc ce e o or r a af ft te er r a a t ti im me e l li im mi it t h ha as s p pa as ss se ed d. . U Us si in ng g t tw wo o
p pa as ss sw wo or rd ds s i in nc cr re ea as se es s t th he e s se ec cu ur ri it ty y o of f t th he e a ac cc co ou un nt t, , a an n i im mp po or rt ta an nt t c co on nc ce er rn n w wi it th h m mo ob bi il le e b ba an nk ki in ng g. .
5 5. . A AT TM Ms s
A Au ut to om ma at te ed d T Te el ll le er r M Ma ac ch hi in ne e i is s a a c co om mp pu ut te er ri iz ze ed d m ma ac ch hi in ne e t th ha at t p pr ro ov vi id de es s t th he e c cu us st to om me er rs s o of f b ba an nk ks s t th he e
f fa ac ci il li it ty y o of f a ac cc ce es ss si in ng g t th he ei ir r a ac cc co ou un nt ts s f fo or r d dr ra aw wi in ng g c ca as sh h a an nd d t to o c ca ar rr ry y o ou ut t o ot th he er r f fi in na an nc ci ia al l t tr ra an ns sa ac ct ti io on ns s
w wi it th ho ou ut t t th he e n ne ee ed d o of f a ac ct tu ua al ll ly y v vi is si it ti in ng g a a b ba an nk k b br ra an nc ch h. .
A AT TM M c ca ar rd ds s/ /d de eb bi it t c ca ar rd ds s, , c cr re ed di it t c ca ar rd ds s a an nd d p pr re ep pa ai id d c ca ar rd ds s ( (t th ha at t p pe er rm mi it t c ca as sh h w wi it th hd dr ra aw wa al l) ) c ca an n b be e
u us se ed d a at t A AT TM Ms s f fo or r v va ar ri io ou us s t tr ra an ns sa ac ct ti io on ns s. .
I In n a ad dd di it ti io on n t to o c ca as sh h d di is sp pe en ns si in ng g, , A AT TM Ms s h ha av ve e f fo ol ll lo ow wi in ng g s se er rv vi ic ce es s/ /f fa ac ci il li it ti ie es s: :

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B Ba al la an nc ce e E En nq qu ui ir ry y
C Ca as sh h D De ep po os si it t
F Fu un nd ds s T Tr ra an ns sf fe er r
P Pr re ep pa ai id d M Mo ob bi il le e R Re ec ch ha ar rg ge e
M Mi in ni i/ /S Sh ho or rt t S St ta at te em me en nt t
P PI IN N C Ch ha an ng ge e e et tc c. .
T Th he e s se er rv vi ic ce es s o of ff fe er re ed d m ma ay y v va ar ry y f fr ro om m b ba an nk k t to o b ba an nk k, , o or r m ma ay y d de ep pe en nd d o on n t th he e c ca ap pa ac ci it ty y o of f t th he e
m ma ac ch hi in ne e a at t t th he e A AT TM M o ou ut tl le et t t to o p pr ro ov vi id de e s su uc ch h s se er rv vi ic ce es s. .
6 6. . C CR RE ED DI IT T C CA AR RD DS S: :
C Cr re ed di it t c ca ar rd d i is s g gi iv ve en n b by y t th he e b ba an nk ke er r t to o t th he e c cu us st to om me er rs s i in n w wh ho om m t th he e n na am me e o of f t th he e c cu us st to om me er r i is s
e em mb bo os ss se ed d i in n b bl lo oc ck ks s l le et tt te er rs s, , t th he e n na am me e o of f t th he e b ba an nk k o of f i is ss su ue es s a an nd d e ex xp pi ir ry y a ar re e a al ls so o m me en nt ti io on ne ed d o on n
t th he e f fi ie el ld d t th he e r re ev ve er rs se e s si id de e o of f t th he e c ca ar rd d w wi il ll l b be ea ar r t th he e s sp pe ec ci im me en n s si ig gn na at tu ur re e o of f t th he e c cu us st to om me er rs s. . A A l li is st t o of f
v ve en nd do or rs s o or r s se el ll le er rs s w wi il ll l b be e g gi iv ve en n b by y t th he e b ba an nk ke er r t to o t th he e c cu us st to om me er rs s. .
T TY YP PE ES S O OF F C CR RE ED DI IT T C CA AR RD DS S
y y C Ch ha ar rg ge e c ca ar rd d
o o I In n t th hi is s c ca ar rd d, , t th he e c ca ar rd dh ho ol ld de er r h ha as s t to o m ma ak ke e f fu ul ll l p pa ay ym me en nt t o of f t th he e c ch ha ar rg ge e b by y t th he e d du ue e
d da at te e. . U Un nl li ik ke e o ot th he er r c cr re ed di it t c ca ar rd ds s, , h he er re e d du ue es s a ar re e n no ot t a al ll lo ow we ed d t to o c ca ar rr ry y f fo or rw wa ar rd d. .
y y A Af ff fi in ni it ty y c ca ar rd d
o o A A c ca ar rd d o of ff fe er re ed d b by y t tw wo o o or rg ga an ni iz za at ti io on ns s o of f w wh hi ic ch h o on ne e i is s a a l le en nd di in ng g i in ns st ti it tu ut ti io on n a an nd d t th he e
o ot th he er r a a n no on n f fi in na an nc ci ia al l g gr ro ou up p. . H He er re e s sc ch ho oo ol ls s, , n no on np pr ro of fi it t g gr ro ou up ps s, , a ai ir rl li in ne es s, , p pe et tr ro ol le eu um m
c co om mp pa an ni ie es s i is ss su ue e a af ff fi in ni it ty y c ca ar rd ds s. . T Th he es se e c ca ar rd ds s c ca ar rr ry y s sp pe ec ci ia al l d di is sc co ou un nt ts s. .
y y S St ta an nd da ar rd d c ca ar rd d

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o o I It t i is s a a n no or rm ma al l c cr re ed di it t c ca ar rd d w wh hi ic ch h c ca ar rr ri ie es s l li im mi it t o on n t tr ra an ns sa ac ct ti io on ns s, , a ac cc co or rd di in ng g t to o t th he e
c cr re ed di it t w wo or rt th hi in ne es ss s o of f t th he e c ca ar rd d h ho ol ld de er r. .
y y C Cl la as ss si is s c ca ar rd d. .
o o A A c cr re ed di it t c ca ar rd d i is ss su ue ed d b by y v vi is sa a, , c ca ar rr ry yi in ng g t th he e l lo og go o o of f v vi is sa a. .
y y G Go ol ld d c ca ar rd d
o o A A c cr re ed di it t c ca ar rd d t th ha at t o of ff fe er rs s a a h hi ig gh he er r l li in ne e o of f c cr re ed di it t t th ha an n a a s st ta an nd da ar rd d c ca ar rd d. . I In nc co om me e
e el li ig gi ib bi il li it ty y i is s a al ls so o h hi ig gh he er r. . I In n a ad dd di it ti io on n, , i is ss su ue er rs s p pr ro ov vi id de e e ex xt tr ra a p pe er rk ks s o or r i in nc ce en nt ti iv ve es s t to o
c ca ar rd dh ho ol ld de er r. .
y y P Pl la at ti in nu um m c ca ar rd d
o o A A c cr re ed di it t c ca ar rd d w wi it th h a a h hi ig gh he er r l li im mi it t a an nd d a ad dd di it ti io on na al l p pe er rk ks s t th ha an n a a g go ol ld d c ca ar rd d. .
y y T Ti it ta an ni iu um m c ca ar rd d
o o A A c ca ar rd d w wi it th h a a e ev ve en n h hi ig gh he er r l li im mi it t t th ha an n a a p pl la at ti in nu um m c ca ar rd d. .

y y S Se ec cu ur re ed d c ca ar rd d
o o A A c cr re ed di it t c ca ar rd d i is s g gi iv ve en n t to o a a c ca ar rd d h ho ol ld de er r w wh ho o h ha as s s sa av vi in ng gs s d de ep po os si it t w wh hi ic ch h w wi il ll l t ta ak ke e
c ca ar re e o of f h hi is s o ou ut ts st ta an nd di in ng g b ba al la an nc ce e, , i in n c ca as se e o of f h hi is s d de ef fa au ul lt t o on n p pa ay ym me en nt t. .
y y S Sm ma ar rt t c ca ar rd d
o o S Sm ma ar rt t c ca ar rd ds s, , s so om me et ti im me es s c ca al ll le ed d c ch hi ip p[ [ c ca ar rd ds s, , c co on nt ta ai in ns s a a c co om mp pu ut te er r c ch hi ip p
e em mb be ed dd de ed d i in n t th he e p pl la as st ti ic c w wh he er re e a a t ty yp pi ic ca al l c cr re ed di it t c ca ar rd d' 's s m ma ag gn ne et ti ic c s st tr ri ip p c ca an n h ho ol ld d
o on nl ly y a a f fe ew w d do oz ze en n c ch ha ar ra ac ct te er rs s, , s st tr ri ip p c ca an n h ho ol ld d o on nl ly y a a f fe ew w d do oz ze en n c ch ha ar ra ac ct te er rs s, ,
s sm ma ar rt ty y c ca ar rd ds s a ar re e n no ow w a av va ai il la ab bl le e w wi it th h 1 16 6k k o of f m me em mo or ry y. . W Wh he en n r re ea ad d b bu uy y a a s sp pe ec ci ia al l
t te er rm mi in na al ls s, , t th he e c ca ar rd ds s c ca an n p pe er rf fo or rm m a a n nu um mb be er r o of f f fu un nc ct ti io on ns s o or r a ac cc ce es ss s d da at ta a s st to or re ed d

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i in n t th he e c ch hi ip p. . T Th he es se e c ca ar rd ds s c ca an n b be e u us se ed d a as s c ca as sh h c ca ar rd ds s o or r a as s c cr re ed di it t c ca ar rd ds s w wi it th h a a
p pr re es se en nt t c cr re ed di it t l li im mi it t, , o or r u us se ed d a as s I ID D c ca ar rd ds s w wi it th h s st to or re ed d ʹ ʹ i in n p pa as ss sw wo or rd ds s. .
7 7. . D DE EB BI IT T C CA AR RD DS S: :
A A d de eb bi it t c ca ar rd d ( (a al ls so o k kn no ow wn n a as s a a b ba an nk k c ca ar rd d o or r c ch he ec ck k c ca ar rd d) ) i is s a a p pl la as st ti ic c c ca ar rd d t th ha at t p pr ro ov vi id de es s a an n
a al lt te er rn na at ti iv ve e p pa ay ym me en nt t m me et th ho od d t to o c ca as sh h w wh he en n m ma ak ki in ng g p pu ur rc ch ha as se es s. . F Fu un nc ct ti io on na al ll ly y, , i it t c ca an n b be e c ca al ll le ed d a an n
e el le ec ct tr ro on ni ic c c ch he eq qu ue e, , a as s t th he e f fu un nd ds s a ar re e w wi it th hd dr ra aw wn n d di ir re ec ct tl ly y f fr ro om m e ei it th he er r t th he e b ba an nk k a ac cc co ou un nt t o or r f fr ro om m
t th he e r re em ma ai in ni in ng g b ba al la an nc ce e o on n t th he e c ca ar rd d. . I In n s so om me e c ca as se es s, , t th he e c ca ar rd ds s a ar re e d de es si ig gn ne ed d e ex xc cl lu us si iv ve el ly y f fo or r u us se e o on n
t th he e I In nt te er rn ne et t, , a an nd d s so o t th he er re e i is s n no o p ph hy ys si ic ca al l c ca ar rd d. . D De eb bi it t c ca ar rd ds s m ma ay y a al ls so o a al ll lo ow w f fo or r i in ns st ta an nt t w wi it th hd dr ra aw wa al l
o of f c ca as sh h, , a ac ct ti in ng g a as s t th he e A AT TM M c ca ar rd d f fo or r w wi it th hd dr ra aw wi in ng g c ca as sh h a an nd d a as s a a c ch he eq qu ue e g gu ua ar ra an nt te ee e c ca ar rd d. .
M Me er rc ch ha an nt ts s m ma ay y a al ls so o o of ff fe er r c ca as sh h b ba ac ck k f fa ac ci il li it ti ie es s t to o c cu us st to om me er rs s, , w wh he er re e a a c cu us st to om me er r c ca an n w wi it th hd dr ra aw w
c ca as sh h a al lo on ng g w wi it th h t th he ei ir r p pu ur rc ch ha as se e. .
D De eb bi it t C Ca ar rd d T Ty yp pe es s
T Th he er re e a ar re e t tw wo o t ty yp pe es s o of f d de eb bi it t c ca ar rd d c ca at te eg go or ri ie es s. . T Th he es se e a ar re e t th he e v vi ir rt tu ua al l d de eb bi it t c ca ar rd ds s a an nd d t th he e
p ph hy ys si ic ca al l d de eb bi it t c ca ar rd ds s. . A A w wi id de e r ra an ng ge e o of f d de eb bi it t c ca ar rd d p pr ro od du uc ct ts s a ar re e o of ff fe er re ed d u un nd de er r t th he es se e c ca at te eg go or ri ie es s. .
T Th he es se e c ca ar rd ds s a ar re e p pr ro ov vi id de ed d w wi it th h a a n nu um mb be er r o of f f fe ea at tu ur re es s. .
V Vi ir rt tu ua al l D De eb bi it t C Ca ar rd ds s
T Th he es se e c ca ar rd ds s h ha av ve e b be ee en n d de es si ig gn ne ed d a as s a a m me ea as su ur re e t to o c ch he ec ck k t th he e f fr ra au ud du ul le en nt t a ac ct ti iv vi it ti ie es s t th ha at t a ar re e
d do on ne e t th hr ro ou ug gh h t th he e I In nt te er rn ne et t. . T Th he er re e a ar re e a a n nu um mb be er r o of f v vi ir rt tu ua al l c cr re ed di it t c ca ar rd ds s o of ff fe er re ed d b by y t th he e c co om mp pa an ni ie es s. .
S So om me e o of f t th he es se e c ca ar rd ds s a ar re e a as s f fo ol ll lo ow ws s: :
y y G Gi if ft t C Ca ar rd ds s
y y P Pa ay yr ro ol ll l C Ca ar rd ds s
y y M Me er rc ch ha an nt t C Ca ar rd ds s
y y I In nc ce en nt ti iv ve e C Ca ar rd ds s
y y S St tu ud de en nt t C Ca ar rd ds s

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S Se er rv vi ic ce es s O Of ff fe er re ed d b by y D Di if ff fe er re en nt t T Ty yp pe es s o of f V Vi ir rt tu ua al l D De eb bi it t C Ca ar rd ds s
y y P Pa ay ym me en nt ts s T Th hr ro ou ug gh h I In nt te er rn ne et t
y y S SM MS S T Tr ra an ns sf fe er rs s
y y O Of ff fl li in ne e P Pa ay ym me en nt ts s
y y M Mo on ne ey y T Tr ra an ns sf fe er r
y y D De ep po os si it to or ry y S Se er rv vi ic ce es s
P Ph hy ys si ic ca al l D De eb bi it t C Ca ar rd ds s
T Th he es se e c ca ar rd ds s a ar re e s si im mi il la ar r t to o o ot th he er r p pl la as st ti ic c c ca ar rd ds s b bu ut t t th he e m ma ai in n d di if ff fe er re en nc ce e i is s t th ha at t t th he e c ca ar rd dh ho ol ld de er rs s
s sh ho ou ul ld d p pu ut t t th he e m mo on ne ey y i in n t th he e c ca ar rd d a ac cc co ou un nt t b be ef fo or re e u us si in ng g t th he e c ca ar rd d. . D Di if ff fe er re en nt t t ty yp pe es s o of f P Ph hy ys si ic ca al l
D De eb bi it t C Ca ar rd ds s a ar re e p pr ro ov vi id de ed d b by y t th he e c ca ar rd d c co om mp pa an ni ie es s. . S So om me e o of f t th he es se e a ar re e t th he e f fo ol ll lo ow wi in ng g: :
R Re e- -L Lo oa ad da ab bl le e D De eb bi it t C Ca ar rd ds s: : T Th he er re e a ar re e a a n nu um mb be er r o of f c ca ar rd ds s t th ha at t a ar re e p pr ro ov vi id de ed d a as s R Re e- -L Lo oa ad da ab bl le e D De eb bi it t
C Ca ar rd ds s. . T Th he es se e a ar re e P Pa ay ym me en nt t C Ca ar rd ds s, , M Me er rc ch ha an nt t C Ca ar rd ds s, , S St tu ud de en nt t C Ca ar rd ds s, , P Pa ay yr ro ol ll l C Ca ar rd ds s, , a an nd d
G Go ov ve er rn nm me en nt t P Pa ay ym me en nt t C Ca ar rd ds s a an nd d s so o o on n
D Di is sp po os sa ab bl le e D De eb bi it t C Ca ar rd ds s: : S So om me e o of f t th he es se e c ca ar rd ds s a ar re e I In nc ce en nt ti iv ve e C Ca ar rd ds s, , G Gi if ft t C Ca ar rd ds s a an nd d s so o o on n. .
S Se er rv vi ic ce es s O Of ff fe er re ed d b by y P Ph hy ys si ic ca al l D De eb bi it t C Ca ar rd ds s
y y A AT TM M S Se er rv vi ic ce es s
y y M Mo on ne ey y T Tr ra an ns sf fe er r S Se er rv vi ic ce es s
y y O On nl li in ne e/ /O Of ff fl li in ne e P Pa ay ym me en nt ts s
y y D De ep po os si it to or ry y S Se er rv vi ic ce es s
y y P PO OS S T Te er rm mi in na al ls s




27



8 8. . P Pu un nj ja ab b N Na at ti io on na al l B Ba an nk k: :
8 8. .1 1 C Co om mp pa an ny y P Pr ro of fi il le e: :
P Pu un nj ja ab b N Na at ti io on na al l B Ba an nk k i is s o on ne e o of f t th he e o ol ld de es st t b ba an nk ks s i in n I In nd di ia a. . I It t w wa as s r re eg gi is st te er re ed d u un nd de er r t th he e I In nd di ia an n
C Co om mp pa an ni ie es s A Ac ct t i in n 1 18 89 94 4. . T Th hi is s b ba an nk k i is s g go ov ve er rn nm me en nt t o ow wn ne ed d a an nd d i is s t th he e s se ec co on nd d l la ar rg ge es st t c co om mm me er rc ci ia al l
b ba an nk k o ow wn ne ed d b by y t th he e g go ov ve er rn nm me en nt t o of f I In nd di ia a. . W Wi it th h o ov ve er r 5 56 6 m mi il ll li io on n s sa at ti is sf fi ie ed d c cu us st to om me er rs s a an nd d 5 50 00 02 2
o of ff fi ic ce es s, , P PN NB B h ha as s c co on nt ti in nu ue ed d t to o r re et ta ai in n i it ts s l le ea ad de er rs sh hi ip p p po os si it ti io on n a am mo on ng gs st t t th he e n na at ti io on na al li iz ze ed d b ba an nk ks s. . T Th he e
b ba an nk k e en nj jo oy ys s s st tr ro on ng g f fu un nd da am me en nt ta al ls s, , l la ar rg ge e f fr ra an nc ch hi is se e v va al lu ue e a an nd d g go oo od d b br ra an nd d i im ma ag ge e. . B Be es si id de es s b be ei in ng g
r ra an nk ke ed d a as s o on ne e o of f I In nd di ia a' 's s t to op p s se er rv vi ic ce e b br ra an nd ds s, , P PN NB B h ha as s r re em ma ai in ne ed d f fu ul ll ly y c co om mm mi it tt te ed d t to o i it ts s g gu ui id di in ng g
p pr ri in nc ci ip pl le es s o of f s so ou un nd d a an nd d p pr ru ud de en nt t b ba an nk ki in ng g. . A Ap pa ar rt t f fr ro om m o of ff fe er ri in ng g b ba an nk ki in ng g p pr ro od du uc ct ts s, , t th he e b ba an nk k h ha as s
a al ls so o e en nt te er re ed d t th he e c cr re ed di it t c ca ar rd d & & d de eb bi it t c ca ar rd d b bu us si in ne es ss s; ; b bu ul ll li io on n b bu us si in ne es ss s; ; l li if fe e a an nd d n no on n- -l li if fe e i in ns su ur ra an nc ce e
b bu us si in ne es ss s; ; G Go ol ld d c co oi in ns s & & a as ss se et t m ma an na ag ge em me en nt t b bu us si in ne es ss s, , e et tc c. .
S Si in nc ce e i it ts s h hu um mb bl le e b be eg gi in nn ni in ng g i in n 1 18 89 95 5 w wi it th h t th he e d di is st ti in nc ct ti io on n o of f b be ei in ng g t th he e f fi ir rs st t I In nd di ia an n b ba an nk k t to o h ha av ve e
b be ee en n s st ta ar rt te ed d w wi it th h I In nd di ia an n c ca ap pi it ta al l, , P PN NB B h ha as s a ac ch hi ie ev ve ed d s si ig gn ni if fi ic ca an nt t g gr ro ow wt th h i in n b bu us si in ne es ss s w wh hi ic ch h a at t t th he e
e en nd d o of f M Ma ar rc ch h 2 20 01 10 0 a am mo ou un nt te ed d t to o R Rs s 4 43 35 59 93 31 1 c cr ro or re e. . T To od da ay y, , w wi it th h a as ss se et ts s o of f m mo or re e t th ha an n R Rs s 2 2, , 9 96 6, ,6 63 33 3
c cr ro or re e, , P PN NB B i is s r ra an nk ke ed d a as s t th he e 3 3r rd d l la ar rg ge es st t b ba an nk k i in n t th he e c co ou un nt tr ry y ( (a af ft te er r S SB BI I a an nd d I IC CI IC CI I B Ba an nk k) ) a an nd d h ha as s t th he e
2 2n nd d l la ar rg ge es st t n ne et tw wo or rk k o of f b br ra an nc ch he es s ( (5 50 00 02 2 o of ff fi ic ce es s i in nc cl lu ud di in ng g 5 5 o ov ve er rs se ea as s b br ra an nc ch he es s) )
8 8. .2 2V VI IS SI IO ON N
" "T To o b be e a a L Le ea ad di in ng g G Gl lo ob ba al l B Ba an nk k w wi it th h P Pa an n I In nd di ia a f fo oo ot tp pr ri in nt ts s a an nd d b be ec co om me e a a h ho ou us se eh ho ol ld d b br ra an nd d i in n t th he e
I In nd do o- -G Ga an ng ge et ti ic c P Pl la ai in ns s p pr ro ov vi id di in ng g e en nt ti ir re e r ra an ng ge e o of f f fi in na an nc ci ia al l p pr ro od du uc ct ts s a an nd d s se er rv vi ic ce es s u un nd de er r o on ne e r ro oo of f" "

28

8 8. .3 3 M MI IS SS SI IO ON N
" "B Ba an nk ki in ng g f fo or r t th he e u un nb ba an nk ke ed d" "
8 8. .4 4 O Ov ve er rv vi ie ew w o of f t th he e p pe er rf fo or rm ma an nc ce e a as s o on n M Ma ar r͛ ͛1 10 0: :
4 40 0. .8 85 5% % s sh ha ar re e o of f C CA AS SA A d de ep po os si it ts s C Ca ap pi it ta al l a ad de eq qu ua ac cy y r ra at ti io o ʹ ʹ 1 14 4. .1 16 6% %
G Gr ro os ss s N NP PA A r ra at ti io o ʹ ʹ 1 1. .7 71 1% % N Ne et t N NP PA A r ra at ti io o ʹ ʹ 0 0. .5 53 3% %
N NI IM M ʹ ʹ 3 3. .5 57 7% % R Re et tu ur rn n o on n A As ss se et ts s ʹ ʹ 1 1. .4 44 4% %
E Ea ar rn ni in ng g P Pe er r S Sh ha ar re e ʹ ʹ R Rs s. . 1 12 23 3. .9 98 8 B Bo oo ok k V Va al lu ue e P Pe er r S Sh ha ar re e ʹ ʹ R Rs s. . 5 51 14 4. .7 77 7

P Pu un nj ja ab b N Na at ti io on na al l B Ba an nk k c co on nt ti in nu ue es s t to o m ma ai in nt ta ai in n i it ts s f fr ro on nt tl li in ne e p po os si it ti io on n i in n t th he e I In nd di ia an n b ba an nk ki in ng g i in nd du us st tr ry y. .
I In n p pa ar rt ti ic cu ul la ar r, , t th he e b ba an nk k h ha as s r re et ta ai in ne ed d i it ts s N NU UM MB BE ER R O ON NE E p po os si it ti io on n a am mo on ng g t th he e n na at ti io on na al li iz ze ed d b ba an nk ks s i in n
t te er rm ms s o of f n nu um mb be er r o of f b br ra an nc ch he es s, , D De ep po os si it t, , A Ad dv va an nc ce es s, , t to ot ta al l B Bu us si in ne es ss s, , A As ss se et ts s, , O Op pe er ra at ti in ng g a an nd d N Ne et t
p pr ro of fi it t i in n t th he e y ye ea ar r 2 20 00 09 9- -1 10 0. . T Th he e i im mp pr re es ss si iv ve e o op pe er ra at ti io on na al l a an nd d f fi in na an nc ci ia al l p pe er rf fo or rm ma an nc ce e h ha as s b be ee en n
b br ro ou ug gh ht t a ab bo ou ut t b by y B Ba an nk k͛ ͛s s f fo oc cu us s o on n c cu us st to om me er r b ba as se ed d b bu us si in ne es ss s w wi it th h t th hr ru us st t o on n C CA AS SA A d de ep po os si it ts s, ,
R Re et ta ai il l, , S SM ME E & & A Ag gr ri i A Ad dv va an nc ce es s a an nd d w wi it th h m mo or re e i in nc cl lu us si iv ve e a ap pp pr ro oa ac ch h t to o b ba an nk ki in ng g; ; b be et tt te er r a as ss se et t l li ia ab bi il li it ty y
m ma an na ag ge em me en nt t; ; i im mp pr ro ov ve ed d m ma ar rg gi in n m ma an na ag ge em me en nt t, , t th hr ru us st t o on n r re ec co ov ve er ry y a an nd d i in nc cr re ea as se ed d e ef ff fi ic ci ie en nc cy y i in n
c co or re e o op pe er ra at ti io on ns s o of f t th he e B Ba an nk k. . T Th he e p pe er rf fo or rm ma an nc ce e h hi ig gh hl li ig gh ht ts s o of f t th he e b ba an nk k i in n t te er rm ms s o of f b bu us si in ne es ss s a an nd d
p pr ro of fi it t a ar re e s sh ho ow wn n b be el lo ow w: :
O Op pe er ra at ti in ng g P Pr ro of fi it t : : R Rs s. . 7 73 32 26 6 C Cr r 2 28 8. .8 80 0% %
N Ne et t P Pr ro of fi it t : : R Rs s. . 3 39 90 05 5 C Cr r 2 26 6. .4 40 0% %
T To ot ta al l B Bu us si in ne es ss s : : R Rs s. . 4 43 35 59 93 31 1 C Cr r 1 19 9. .6 60 0% %
D De ep po os si it ts s : : R Rs s. . 2 24 49 93 33 30 0 C Cr r 1 18 8. .9 90 0% %
C Cr re ed di it ts s : : R Rs s. . 1 18 86 66 60 01 1 C Cr r 2 20 0. .6 60 0% %
T To ot ta al l A As ss se et ts s : : R Rs s. . 2 29 96 66 63 33 3 C Cr r 2 20 0. .1 10 0% %



29

8 8. .5 5 P Pu un nj ja ab b N Na at ti io on na al l B Ba an nk k͛ ͛s s r ro ob bu us st t t te ec ch hn no ol lo og gy y p pl la at tf fo or rm m: :
P PN NB B h ha as s a al lw wa ay ys s l lo oo ok ke ed d a at t t te ec ch hn no ol lo og gy y a as s a a k ke ey y f fa ac ci il li it ta at to or r t to o p pr ro ov vi id de e b be et tt te er r c cu us st to om me er r s se er rv vi ic ce e a an nd d
e en ns su ur re ed d t th ha at t i it ts s ͚ ͚I IT T s st tr ra at te eg gy y͛ ͛ f fo ol ll lo ow ws s t th he e ͚ ͚B Bu us si in ne es ss s s st tr ra at te eg gy y͛ ͛ s so o a as s t to o a ar rr ri iv ve e a at t ͞ ͞B Be es st t F Fi it t͟ ͟. . T Th he e
b ba an nk k h ha as s m ma ad de e r ra ap pi id d s st tr ri id de es s i in n t th hi is s d di ir re ec ct ti io on n. .
A Al ll l b br ra an nc ch he es s o of f t th he e B Ba an nk k a ar re e u un nd de er r C Co or re e B Ba an nk ki in ng g S So ol lu ut ti io on n ( (C CB BS S) ) s si in nc ce e D De ec c͛ ͛0 08 8, , t th hu us s
c co ov ve er ri in ng g 1 10 00 0% % o of f i it ts s b bu us si in ne es ss s a an nd d p pr ro ov vi id di in ng g ͚ ͚A An ny yt ti im me e A An ny yw wh he er re e͛ ͛ b ba an nk ki in ng g f fa ac ci il li it ty y t to o a al ll l
c cu us st to om me er rs s i in nc cl lu ud di in ng g c cu us st to om me er rs s o of f m mo or re e t th ha an n 3 30 00 00 0 r ru ur ra al l & & s se em mi i u ur rb ba an n b br ra an nc ch he es s. .
T Th he e b ba an nk k h ha as s a al ls so o b be ee en n o of ff fe er ri in ng g I In nt te er rn ne et t b ba an nk ki in ng g s se er rv vi ic ce es s t to o t th he e c cu us st to om me er rs s o of f C CB BS S
b br ra an nc ch he es s l li ik ke e b bo oo ok ki in ng g o of f t ti ic ck ke et ts s, , p pa ay ym me en nt t o of f b bi il ll ls s o of f u ut ti il li it ti ie es s, , p pu ur rc ch ha as se e o of f a ai ir rl li in ne e t ti ic ck ke et ts s
e et tc c. . T To ow wa ar rd ds s d de ev ve el lo op pi in ng g a a c co os st t e ef ff fe ec ct ti iv ve e a al lt te er rn na at ti iv ve e c ch ha an nn ne el ls s o of f d de el li iv ve er ry y, , t th he e b ba an nk k w wi it th h
m mo or re e t th ha an n 3 35 50 0 A AT TM Ms s h ha as s t th he e l la ar rg ge es st t A AT TM M n ne et tw wo or rk k a am mo on ng gs st t N Na at ti io on na al li iz ze ed d B Ba an nk ks s. .
C CB BS S p pl la at tf fo or rm m i is s u up pg gr ra ad de ed d w wi it th h O Or ra ac cl le e R RA AC C ( (R Re ea al l A Ap pp pl li ic ca at ti io on n C Cl lu us st te er r) ) t to o m me ee et t s sc ca al la ab bi il li it ty y
a an nd d a av va ai il la ab bi il li it ty y. . F Fi ir rs st t F Fi in na ac cl le e C CB BS S s se et tu up p t to o h ha av ve e R RA AC C. .
5 51 11 16 6 s se er rv vi ic ce e o ou ut tl le et ts s ( (S SO OL Ls s) ) a at t 2 26 69 94 4 c ce en nt te er rs s a ac cr ro os ss s t th he e c co ou un nt tr ry y f fa ac ci il li it ta at ti in ng g a ar ro ou un nd d 5 56 6
m mi il ll li io on n a ac cc co ou un nt t h ho ol ld de er rs s w wi it th h ͞ ͞A An ny yt ti im me e a an nd d A An ny yw wh he er re e B Ba an nk ki in ng g͟ ͟. .
A A w wo or rl ld d c cl la as ss s s se ec cu ur ri it ty y o op pe er ra at ti io on ns s c ce en nt tr re e t to o m mo on ni it to or r, , m ma an na ag ge e t th he e s se ec cu ur ri it ty y s se et tu up p o of f t th he e
b ba an nk k͛ ͛s s c ce en nt tr ra al li iz ze ed d t te ec ch hn no ol lo og gy y a ac ct ti iv vi it ti ie es s, , f fi ir rs st t o of f i it ts s k ki in nd d f fo or r a an ny y b ba an nk k i in n t th he e c co ou un nt tr ry y. .
F Fi ir rs st t n na at ti io on na al li iz ze ed d b ba an nk k t to o i im mp pl le em me en nt t t th he e e en nt te er rp pr ri is se e- -w wi id de e d da at ta a w wa ar re eh ho ou us se e t to o i in nt te eg gr ra at te e
d da at ta a f fr ro om m m mu ul lt ti ip pl le e s so ou ur rc ce e s sy ys st te em ms s a an nd d p pr ro ov vi id de e M MI IS S a an nd d d da at ta a f fe ee ed d t to o a an nt ti i m mo on ne ey y
l la au un nd de er ri in ng g a an nd d o op pe er ra at ti io on na al l r ri is sk k s so ol lu ut ti io on n. .
O Op pe er ra at ti io on na al l r ri is sk k s so ol lu ut ti io on n o op pe er ra at ti io on na al li iz ze ed d t to o m mo on ni it to or r c co om mp pl li ia an nc ce e w wi it th h B BA AS SE EL L I II I
r re eq qu ui ir re em me en nt ts s. .
E Ef ff fe ec ct ti iv ve e a an nd d s se ea am ml le es ss s i in nt te eg gr ra at ti io on n w wi it th h p pa ay ym me en nt t s sy ys st te em ms s l li ik ke e R RT TG GS S, , N NE EF FT T, , E EC CS S f fa ac ci il li it ty y
e en na ab bl le ed d a at t a al ll l 4 49 9 c ce en nt te er rs s. .
A Al ll l 6 6 P PN NB B s sp po on ns so or re ed d R RR RB Bs s 1 10 00 0% % C CB BS S c co om mp pl li ia an nt t c co ov ve er ri in ng g 1 14 41 16 6 S SO OL Ls s. .



30

8 8. .6 6 P Pu un nj ja ab b N Na at ti io on na al l B Ba an nk k i in nc cr re ea as si in ng g i it ts s g gl lo ob ba al l f fo oo ot tp pr ri in nt ts s: :
B Ba an nk k i is s i in n t th he e p pr ro oc ce es ss s o of f: :
U Up pg gr ra ad di in ng g i it ts s R Re ep pr re es se en nt ta at ti iv ve e O Of ff fi ic ce es s i in n C Ch hi in na a a an nd d N No or rw wa ay y t to o b br ra an nc ch h. .
S Se et tt ti in ng g u up p o of f r re ep pr re es se en nt ta at ti iv ve e o of ff fi ic ce e i in n S Sy yd dn ne ey y, , A Au us st tr ra al li ia a. .
A Ac cq qu ui ir ri in ng g 6 63 3. .6 64 4% % s st ta ak ke e w wi it th h m ma an na ag ge em me en nt t c co on nt tr ro ol l i in n J JS SC C D Da an na a B Ba an nk k i in n K Ka az za ak kh hs st ta an n. .
S Se et tt ti in ng g u up p a a w wh ho ol ll ly y o ow wn ne ed d s su ub bs si id di ia ar ry y i in n C Ca an na ad da a, , h he ea ad d q qu ua ar rt te er re ed d a at t V Va an nc co ou uv ve er r. .
8 8. .7 7 B Ba an nk k h ha as s b be ee en n a a r re ec ci ip pi ie en nt t o of f m ma an ny y a aw wa ar rd ds s a an nd d a ac cc co ol la ad de es s d du ur ri in ng g
t th he e y ye ea ar r: :- -
G Go ol ld d t tr ro op ph hy y o of f S SC CO OP PE E M Me er ri it to or ri io ou us s A Aw wa ar rd d f fo or r E Ex xc ce el ll le en nc ce e i in n C Co or rp po or ra at te e G Go ov ve er rn na an nc ce e 2 20 00 09 9
b by y S St ta an nd di in ng g C Co on nf fe er re en nc ce e o of f P Pu ub bl li ic c E En nt te er rp pr ri is se es s
A As s p pe er r F Fi in na an nc ci ia al l E Ex xp pr re es ss s- -E Er rn ne es st t & & y yo ou un ng g ( (F FE E- -E EY Y) ) I In nd di ia a͛ ͛s s B Be es st t B Ba an nk ks s S Su ur rv ve ey y, , P PN NB B i is s
i id de en nt ti if fi ie ed d a as s t th he e b be es st t b ba an nk k a am mo on ng g t th he e n na at ti io on na al li iz ze ed d b ba an nk ks s i in n t te er rm ms s o of f o ov ve er ra al ll l r ra an nk ki in ng g. .
A As s p pe er r H HT T- -M Ma ar rs s S Su ur rv ve ey y o on n C Cu us st to om me er r S Sa at ti is sf fa ac ct ti io on n, , P PN NB B s st to oo od d N NU UM MB BE ER R O ON NE E i in n D De el lh hi i a an nd d
C Ch he en nn na ai i i in n t te er rm ms s o of f c cu us st to om me er r s sa at ti is sf fa ac ct ti io on n. .
A As s p pe er r t th he e F Fo or rb be es s A An nn nu ua al l l li is st t o of f 2 20 00 00 0 g gl lo ob ba al l g gi ia an nt ts s, , P PN NB B t to op ps s t th he e l li is st t o of f n na at ti io on na al li iz ze ed d
b ba an nk ks s w wi it th h a a g gl lo ob ba al l r ra an nk ki in ng g o of f 6 69 95 5, , s su ub bs st ta an nt ti ia al l i im mp pr ro ov ve em me en nt t o ov ve er r l la as st t y ye ea ar r͛ ͛s s p pl la ac ce em me en nt t
a at t 9 94 46 6t th h p po os si it ti io on n. .
T Th he e E Ec co on no om mi ic c T Ti im me es s h ha as s r ra an nk ke ed d C CE EO O o of f P PN NB B a as s t th he e 3 32 2n nd d M Mo os st t P Po ow we er rf fu ul l C CE EO O o of f 2 20 01 10 0. .
S Sk ko oc ch h C Ch ha al ll le en ng ge e A Aw wa ar rd d 2 20 01 10 0 f fo or r ͞ ͞L Li iv ve el li ih ho oo od d L Li in nk ka ag ge e͟ ͟ o of f t th he e m mi il lk k p pr ro od du uc ce er rs s i in n
B Bu ul la an nd ds sh ha ah hr r D Di is st tr ri ic ct t, , U Ut tt ta ar r P Pr ra ad de es sh h. .
I ID DC C F Fi in na an nc ci ia al l I In ns si ig gh ht ts s I In nn no ov va at ti io on n a aw wa ar rd ds s 2 20 01 10 0 b by y I ID DC C F Fi in na an nc ci ia al l I In ns si ig gh ht ts s



31


8 8. .8 8 P Pr ro od du uc ct ts s a an nd d s se er rv vi ic ce es s: :
P Pu un nj ja ab b N Na at ti io on na al l B Ba an nk k o of ff fe er rs s a a w wi id de e r ra an ng ge e o of f p pr ro od du uc ct ts s a an nd d s se er rv vi ic ce es s i in n P Pe er rs so on na al l b ba an nk ki in ng g, ,
c co or rp po or ra at te e b ba an nk ki in ng g a an nd d h ho om me e l lo oa an ns s s se eg gm me en nt t. .
S Sa av vi in ng gs s F Fu un nd d A Ac cc co ou un nt t T To ot ta al l F Fr re ee ed do om m S Sa al la ar ry y A Ac cc co ou un nt t, , P PN NB B
P Pr ru ud de en nt t S Sw we ee ep p, , P PN NB B V Vi id dy ya ar rt th hi i S SF F A Ac cc co ou un nt t, , P PN NB B
M Mi it tr ra a S SF F
A Ac cc co ou un nt t C Cu ur rr re en nt t A Ac cc co ou un nt t P PN NB B V Va ai ib bh ha av v, , P PN NB B G Ga au ur ra av v, , P PN NB B S Sm ma ar rt t
R Ro oa am me er r
F Fi ix xe ed d D De ep po os si it t S Sc ch he em me es s S Sp pe ec ct tr ru um m F Fi ix xe ed d D De ep po os si it t S Sc ch he em me e, , A An nu up pa am m
A Ac cc co ou un nt t, , M Ma ah ha ab ba ac ch ha at t S Sc ch he em me es s, , M Mu ul lt ti i B Be en ne ef fi it t
D De ep po os si it t
S Sc ch he em me e C Cr re ed di it t S Sc ch he em me es s F Fl le ex xi ib bl le e H Ho ou us si in ng g L Lo oa an n, , C Ca ar r F Fi in na an na ac ce e, ,
P Pe er rs so on na al l L Lo oa an n, , C Cr re ed di it t C Ca ar rd ds s
S So oc ci ia al l B Ba an nk ki in ng g M Ma ah hi il la a U Ud dy ya am m N Ni id dh hi i S Sc ch he em me e, , K Kr ri is sh hi i C Ca ar rd d, ,
P PN NB B F Fa ar rm me er rs s W We el lf fa ar re e T Tr ru us st t
C Co or rp po or ra at te e B Ba an nk ki in ng g G Go ol ld d C Ca ar rd d s sc ch he em me e f fo or r e ex xp po or rt te er rs s, , E EX XI IM M
f fi in na an nc ce e
B Bu us si in ne es ss s S Se ec ct to or r P PN NB B K Ka ar ri ig ga ar r c cr re ed di it t c ca ar rd d, , P PN NB B K Ku us sh ha al l
U Ud dh ha am mi i, , P PN NB B P Pr ra ag ga at ti i U Ud dh ha am mi i, , P PN NB B V Vi ik ka as s U Ud dh ha am mi i





32

9 9. . P PE ES ST T A An na al ly ys si is s: :


























Political
Regulatory Bodies
Govt. policies
International legislation
Technological
Competent technology
development
IT
Global communication
Innovation potential
Economic
Economic trends
(Indian & Global)
Seasonality and
weather issues
Interest and exchange
rates
Social
Lifestyle trends
Customer attitudes and
opinions
Media views
Brand image
Advertising and publicity

33


1 10 0. . S SW WO OT T A An na al ly ys si is s: :


STRENGHTHS
Loyal customers
Brand image
Low opening balance required
Speedy transactions
Easy Availability of loans at low cost of
interest
100% CBS enabled branches
Less affected by the depreciation of other
currencies than the foreign banks
WEAKNESS
Poor ATM services
Not so attractive ambience
Attendance of queries over the phone
Ineffective marketing of financial
products
Grievances of increasing rates for locker
services
Relationship managers not very visible
Frequent link failures bringing activities to
halt
OPPORTUNITY
Further developments in internet banking
Training staff in using computer aided
softwares
Selling more of self branded products
than third party products
Proper implementation of CRM

THREAT
Private sector banks
Other public sector banks offering higher
rates of interest on deposits
Young generation does not have a very
positive image about the branch
(obsolete and not eye catching) so they
are reluctant to open their accounts.








34


1 11 1. . T TO OW WS S A An na al ly ys si is s: :






35

1 12 2. . R Re es se ea ar rc ch h S St ta at te em me en nt t: :
1 12 2. .1 1 R Re es se ea ar rc ch h P Pr ro ob bl le em m: :
W Wi it th h m mo or re e a an nd d m mo or re e b ba an nk ks s c co om mi in ng g u up p t th he e c co om mp pe et ti it ti io on n l le ev ve el l i is s s so oa ar ri in ng g h hi ig gh h. . T Th he e r re es se ea ar rc ch h
a at tt te em mp pt ts s t to o u un nd de er rs st ta an nd d h ho ow w i it ts s e ex xi is st ti in ng g c cu us st to om me er rs s r ra at te e t th he e v va ar ri io ou us s p pa ar ra am me et te er rs s a an nd d w wh he er re e t th he ey y
e ex xp pe ec ct t i im mp pr ro ov ve em me en nt ts s. . T Th hi is s r re es se ea ar rc ch h p pa ap pe er r i is s d di ir re ec ct te ed d t to ow wa ar rd ds s r re e- -b br ra an nd di in ng g s su ug gg ge es st ti io on ns s f fo or r
v va ar ri io ou us s P PN NB B e e- -p pr ro od du uc ct ts s l li ik ke e i in nt te er rn ne et t b ba an nk ki in ng g, , m mo ob bi il le e b ba an nk ki in ng g, , A AT TM Ms s, , D De eb bi it t c ca ar rd ds s, , C Cr re ed di it t c ca ar rd ds s. .
1 12 2. .2 2 P Pr ro oj je ec ct t O Ob bj je ec ct ti iv ve es s: :
T To o s st tu ud dy y t th he e e e- -b ba an nk ki in ng g p po ot te en nt ti ia al l i in n I In nd di ia a i in n t th he e c cu ur rr re en nt t s sc ce en na ar ri io o. .
T To o s st tu ud dy y b br ra an nd d i im ma ag ge e o of f v va ar ri io ou us s e e- -p pr ro od du uc ct ts s a at t P PN NB B i in n t th he e m mi in nd ds s o of f t th he e c cu us st to om me er rs s. .
T To o m me ea as su ur re e t th he e c cu us st to om me er r s sa at ti is sf fa ac ct ti io on n t th hr ro ou ug gh h a a q qu ue es st ti io on nn na ai ir re e g ge en ne er ra at ti in ng g c cu us st to om me er r
r re es sp po on ns se es s. .
T To o a an na al ly yz ze e t th he e c co or rr re el la at ti io on n b be et tw we ee en n t th he e q qu ua an nt ti it ta at ti iv ve e a an nd d t th he e q qu ua al li it ta at ti iv ve e f fa ac ct to or rs s i in n
o ov ve er ra al ll l c cu us st to om me er r s sa at ti is sf fa ac ct ti io on n. .
T To o r re ec co om mm me en nd d b be et tt te er r p pr ra ac ct ti ic ce es s a as s f fe el lt t t th hr ro ou ug gh h o ob bs se er rv va at ti io on ns s a an nd d c cu us st to om me er r s su ug gg ge es st ti io on ns s. .
T To o g gi iv ve e P PN NB B e e- -b ba an nk ki in ng g a a c co om mp pl le et te el ly y n ne ew w a an nd d f fr re es sh h l lo oo ok k. .
1 12 2. .3 3 R Re es se ea ar rc ch h d de es si ig gn n, , m me et th ho od do ol lo og gy y a an nd d r re es se ea ar rc ch h i in ns st tr ru um me en nt t: :
1 12 2. .3 3. .1 1 R Re es se ea ar rc ch h P Pl la an n: :
1 12 2. .3 3. .1 1. .1 1P Pr ri im ma ar ry y I In nv ve es st ti ig ga at ti io on n: :
I In n w wh hi ic ch h d da at ta a o on n t th he e s si it tu ua at ti io on n s su ur rr ro ou un nd di in ng g t th he e p pr ro ob bl le em m w wi il ll l b be e g ga at th he er re ed d i in n o or rd de er r t to o a ar rr ri iv ve e a at t
t th he e c co or rr re ec ct t d de ef fi in ni it ti io on n o of f t th he e p pr ro ob bl le em m. .
1 12 2. .3 3. .1 1. .2 2 E Ex xp pl lo or ra at to or ry y S St tu ud dy y: :
D De et te er rm mi in ne e t th he e a ap pp pr ro ox xi im ma at te e a ar re ea a w wh he er re e t th he e p pr ro ob bl le em m l li ie es s

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1 12 2. .3 3. .2 2 R Re es se ea ar rc ch h D De es si ig gn n: :
R Re es se ea ar rc ch h w wa as s i in ni it ti ia at te ed d b by y e ex xa am mi in ni in ng g t th he e s se ec co on nd da ar ry y d da at ta a t to o g ga ai in n i in ns si ig gh ht t i in nt to o t th he e p pr ro ob bl le em m. . B By y
a an na al ly yz zi in ng g t th he e s se ec co on nd da ar ry y d da at ta a, , t th he e s st tu ud dy y a ai im m i is s t to o e ex xp pl lo or re e t th he e s sh ho or rt t c co om mi in ng gs s o of f t th he e p pr re es se en nt t
s sy ys st te em m a an nd d p pr ri im ma ar ry y d da at ta a w wi il ll l h he el lp p t to o v va al li id da at te e t th he e a an na al ly ys si is s o of f s se ec co on nd da ar ry y d da at ta a b be es si id de es s o on n
u un nr re ev ve ea al li in ng g t th he e a ar re ea as s w wh hi ic ch h c ca al ll ls s f fo or r i im mp pr ro ov ve em me en nt t. .
1 12 2. .4 4 A An na al ly ys si is s a an nd d R Re eb br ra an nd di in ng g o of f P PN NB B I In nt te er rn ne et t B Ba an nk ki in ng g: :
P PN NB B ʹ ʹ P Pr re ef fe ec ct t N Ne et t B Ba an nk ki in ng g
E En nj jo oy y t th he e b be en ne ef fi it ts s o of f i in nt te er rn ne et t b ba an nk ki in ng g 2 24 4x x7 7x x3 36 65 5
P PN NB B o of ff fe er rs s I In nt te er rn ne et t B Ba an nk ki in ng g s se er rv vi ic ce es s f fo or r b bo ot th h t to o t th he e C Co or rp po or ra at te e a an nd d I In nd di iv vi id du ua al ls s. . I It t p pr ro ov vi id de es s 2 24 4
h ho ou ur rs s, , 3 36 65 5 d da ay ys s b ba an nk ki in ng g f fr ro om m t th he e P PC C o of f t th he e u us se er r. . A A u us se er r c ca an n o op pe er ra at te e a an ny yt ti im me e a an nd d f fr ro om m
a an ny yw wh he er re e i it ts s a ac cc co ou un nt ts s. . T Th he e f fo ol ll lo ow wi in ng g a ar re e s so om me e o of f t th he e s se er rv vi ic ce es s a av va ai il la ab bl le e o on nl li in ne e: :
y y A Ac cc ce es ss s t to o a ac cc co ou un nt t
y y C Co om mp pl le et te e d de et ta ai il ls s o of f t tr ra an ns sa ac ct ti io on ns s a an nd d s st ta at te em me en nt t o of f a ac cc co ou un nt t
y y O On nl li in ne e i in nf fo or rm ma at ti io on n o of f d de ep po os si it ts s, , l lo oa an ns s o ov ve er rd dr ra af ft t a ac cc co ou un nt t e et tc c. .
y y O On nl li in ne e P Pa ay ym me en nt t F Fa ac ci il li it ty y f fo or r r ra ai il lw wa ay y r re es se er rv va at ti io on n t th hr ro ou ug gh h I IR RC CT TC C P Pa ay ym me en nt t G Ga at te ew wa ay y P Pr ro oj je ec ct t
y y O On nl li in ne e U Ut ti il li it ty y B Bi il ll l P Pa ay ym me en nt t S Se er rv vi ic ce es s w wh hi ic ch h a al ll lo ow ws s I In nt te er rn ne et t B Ba an nk ki in ng g a ac cc co ou un nt t h ho ol ld de er rs s t to o
p pa ay y t th he ei ir r t te el le ep ph ho on ne e, , m mo ob bi il le e, , e el le ec ct tr ri ic ci it ty y, , i in ns su ur ra an nc ce e a an nd d o ot th he er r b bi il ll ls s a an ny yt ti im me e f fr ro om m
a an ny yw wh he er re e f fr ro om m t th he ei ir r d de es sk kt to op p. .
I In n o or rd de er r t to o a av va ai il l i in nt te er rn ne et t b ba an nk ki in ng g, , t th he e c co on ns su um me er rs s h ha av ve e t to o a ag gr re ee e t to o c ce er rt ta ai in n c co on nd di it ti io on ns s t to o
u us se e t th he e i in nt te er rn ne et t b ba an nk ki in ng g f fa ac ci il li it ty y c co on nt ti in nu uo ou us sl ly y w wi it th ho ou ut t a an ny y p pr ro ob bl le em ms s. . T Th he e m mo os st t i im mp po or rt ta an nt t
c co on nd di it ti io on n o of f a al ll l i is s t th he e s so of ft tw wa ar re e w wh hi ic ch h h ha as s t to o b be e a av va ai il le ed d b by y t th he e c co on ns su um me er r f fo or r h hi im ms se el lf f w wh hi ic ch h i is s
g gi iv ve en n b be el lo ow w: :


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T Th he e B Ba an nk k r re eq qu ui ir re em me en nt ts s f fo or r s so of ft tw wa ar re e i in n o or rd de er r t to o l le et t t th he e c co on ns su um me er rs s u us se e i in nt te er rn ne et t b ba an nk ki in ng g d di if ff fe er rs s
a as s p pe er r t th he ei ir r t te ec ch hn no ol lo og gy y u us sa ag ge e. . T Th he e f fo or re ei ig gn n b ba an nk ks s d do on n͛ ͛t t f fi in nd d a an ny y p pr ro ob bl le em ms s a as s f fa ar r a as s t te ec ch hn no ol lo og gy y i is s
c co on nc ce er rn ne ed d w wh he er re ea as s n na at ti io on na al li iz ze ed d b ba an nk ks s r re eq qu ui ir re e p pa ar rt ti ic cu ul la ar r s so of ft tw wa ar re e f fo or r t th he e c co on ns su um me er rs s t to o u us se e
t th he ei ir r i in nt te er rn ne et t b ba an nk ki in ng g s se er rv vi ic ce es s. .
T Th he e i in nt te er rn ne et t b ba an nk ki in ng g f fa ac ci il li it ty y p pr ro ov vi id de ed d b by y P PN NB B i is s o ov ve er ra al ll l g go oo od d a as s c co om mp pa ar re ed d t to o t th he e o ot th he er r b ba an nk ks s
b bu ut t r re eq qu ui ir re es s a a f fe ew w c ch ha an ng ge es s i in n t te er rm ms s o of f i it ts s l lo oo ok ks s a an nd d e ea as se e i in n c co om mp pl le ex xi it ti ie es s w wh hi ic ch h w wo ou ul ld d a at tt tr ra ac ct t
t th he e c co on ns su um me er rs s t to o u us se e m mo or re e a an nd d m mo or re e i in nt te er rn ne et t b ba an nk ki in ng g. . T Th he e a ae es st th he et ti ic cs s o of f t th he e w we eb bp pa ag ge e a ar re e n no ot t
v ve er ry y p pl le ea as si in ng g. .
T Th he e c cu ur rr re en nt t p po os si it ti io on ni in ng g o of f P PN NB B i in nt te er rn ne et t b ba an nk ki in ng g d de ef fi in ne es s i it t a as s a a p pe er rf fe ec ct t b ba an nk ki in ng g s so ol lu ut ti io on n f fo or r
i in nt te er rn ne et t u us se er rs s. . I It t s sa ay ys s t th ha at t n no o m ma at tt te er r w wh ha at t t th he e t ti im me e i is s, , c cu us st to om me er rs s c ca an n u us se e i in nt te er rn ne et t b ba an nk ki in ng g
f fa ac ci il li it ti ie es s a an ny y t ti im me e a as s p pe er r t th he ei ir r c co on nv ve en ni ie en nc ce e. . T Th hi is s a al ls so o i in nd di ic ca at te es s t th he e P PN NB B c cu ul lt tu ur re e t th ha at t c cu us st to om me er rs s
a ar re e a a p pr ri io or ri it ty y f fo or r a al ll l P PN NB B e em mp pl lo oy ye ee es s. . T Th hi is s g go oe es s i in n l li in ne e w wi it th h t th he e P PN NB B t ta ag g l li in ne e, , ͛ ͛t th he e n na am me e y yo ou u c ca an n

38

b ba an nk k u up po on n. .͛ ͛ I It t s su ug gg ge es st ts s t to o t th he e c cu us st to om me er rs s t th ha at t P Pu un nj ja ab b N Na at ti io on na al l B Ba an nk k i is s t th he e o on ne e w wh hi ic ch h I In nd di ia an ns s
h ha av ve e a al lw wa ay ys s t tr ru us st te ed d a an nd d w wi it th h t th he e a ad dv va an nc ce em me en nt t o of f t te ec ch hn no ol lo og gy y P PN NB B h ha as s i im mp pr ro ov ve ed d i it ts se el lf f f fo or r t th he e
b be et tt te er r. . S Sa af fe et ty y a an nd d s se ec cu ur ri it ty y o of f c cu us st to om me er rs s i is s e eq qu ua al ll ly y i im mp po or rt ta an nt t f fo or r P PN NB B. .
T Th he e b br ro oc ch hu ur re e d di is sp pl la ay ys s a a h hu um ma an n h ha an nd d p pr re es ss si in ng g t th he e e en nt te er r k ke ey y o of f a a l la ap pt to op p o on n w wh hi ic ch h t th he e w wo or rd ds s
P PN NB B S Sa af fe e N Ne et t B Ba an nk ki in ng g a ar re e h hi ig gh hl li ig gh ht te ed d. . T Th he e s sc cr re ee en n o of f t th he e l la ap pt to op p s sh ho ow ws s t th he e P PN NB B o on nl li in ne e w we eb bs si it te e. .
T Th he e b br ro oc ch hu ur re e a al ls so o s sa ay ys s t th ha at t t th he e b ba an nk k c ca at te er rs s t to o t tw wo o t ty yp pe es s o of f c cu us st to om me er rs s: :
R Re et ta ai il l c cu us st to om me er rs s
C Co or rp po or ra at te e c cu us st to om me er rs s
T Th he e b br ro oc ch hu ur re e a al ls so o l li is st ts s d do ow wn n v va ar ri io ou us s f fa ac ci il li it ti ie es s t th ha at t a ar re e m ma ad de e a av va ai il la ab bl le e t to o b bo ot th h t ty yp pe es s o of f
c cu us st to om me er rs s. . T Th he er re e i is s a al ls so o a a m me en nt ti io on n o of f H He el lp p D De es sk k. .
A As s P PN NB B h ha as s b ba as si ic ca al ll ly y c ca at te er re ed d t to o a a h hu ug ge e n nu um mb be er r o of f l lo ow we er r a an nd d m mi id dd dl le e c cl la as ss s c ci it ti iz ze en ns s o of f I In nd di ia a, , t th he e
b br ro oc ch hu ur re e i is s a al ls so o p pr ri in nt te ed d i in n H Hi in nd di i w wh he en n w we e f fl li ip p t th he e a ad dv ve er rt ti is se em me en nt t t to o o ot th he er r s si id de e, , i in n o or rd de er r t to o m ma ak ke e
i it t c co on nv ve en ni ie en nt t f fo or r t th he e c cu us st to om me er rs s t to o u un nd de er rs st ta an nd d t th he e a ad dv ve er rt ti is se em me en nt t. .
1 12 2. .4 4. .1 1 F Fi in nd di in ng gs s: :
T Th he e P PN NB B a ad dv ve er rt ti is si in ng g j ju us st t t to ou uc ch he es s u up po on n t th he e ͚ ͚S Sa af fe e N Ne et t B Ba an nk ki in ng g͛ ͛ p po os si it ti io on ni in ng g. . I In n o ot th he er r p pa ar rt ts s o of f t th he e
a ad dv ve er rt ti is se em me en nt t w we e n no ow wh he er re e s se ee e h ho ow w P PN NB B p pr ro oj je ec ct ts s i it ts se el lf f a as s s sa af fe e a an nd d s se ec cu ur re ed d. . W We e s se ee e t th ha at t m mo os st t
o of f t th he e a ad dv ve er rt ti is se em me en nt t i is s r re ev vo ol lv vi in ng g a ar ro ou un nd d t th he e 2 24 4x x7 7x x3 36 65 5 o on nl li in ne e a ac cc ce es ss s a an nd d t th he e v va ar ri ie et ty y o of f f fa ac ci il li it ti ie es s
t th ha at t i it t p pr ro ov vi id de es s. . W We e c ca an n s sa ay y t th ha at t a ad dv ve er rt ti is se em me en nt t i is s d di ir re ec ct te ed d t to ow wa ar rd ds s p pr ro ov vi id di in ng g i in nf fo or rm ma at ti io on n t to o
t th he e c cu us st to om me er rs s r ra at th he er r t th ha an n p pe er rs su ua ad di in ng g t th he em m t to o u us se e i in nt te er rn ne et t b ba an nk ki in ng g s se er rv vi ic ce es s o of f P PN NB B. .
1 12 2. .4 4. .2 2 S Su ug gg ge es st te ed d p pe er rc ce ep pt ti io on n t to ow wa ar rd ds s I In nt te er rn ne et t B Ba an nk ki in ng g
A Ad dv ve er rt ti is se em me en nt ts s: :
I In nt te er rn ne et t b ba an nk ki in ng g i is s v ve er ry y m mu uc ch h n ne ew w t to o I In nd di ia a w wh he en n w we e c co om mp pa ar re e i it t w wi it th h o ot th he er r c co ou un nt tr ri ie es s. . I In nd di ia an n
c cu ul lt tu ur re e w wi il ll l s st ti il ll l n ne ee ed d t ti im me e t to o a ad dj ju us st t t to o t th he e c ch ha an ng gi in ng g t te ec ch hn no ol lo og gy y. . T Th ho ou ug gh h i in nt te er rn ne et t b ba an nk ki in ng g i in n
I In nd di ia a i is s p pi ic ck ki in ng g u up p f fa as st t p pa ac ce e a an nd d t th he e d da ay y i is s n no ot t f fa ar r w wh he en n a al lm mo os st t a al ll l b ba an nk ki in ng g t tr ra an ns sa ac ct ti io on ns s w wi il ll l b be e
p po os ss si ib bl le e v vi ir rt tu ua al ll ly y, , y ye et t P PN NB B s sh ho ou ul ld d b be e v ve er ry y c ca ar re ef fu ul l t to o l la ay y d do ow wn n i it ts s p po os si it ti io on ni in ng g i in n a a m ma ar rk ke et t w wh he er re e

39

i in nt te er rn ne et t b ba an nk ki in ng g h ha as s a al lr re ea ad dy y b be ec co om me e a a p pa ar rt t o of f a al ll l t th he e c co om mp pe et ti it to or rs s͛ ͛ b ba an nk ks s. . T Th he e f fa ac ci il li it ti ie es s t th ha at t P PN NB B
a ad dv ve er rt ti is se es s a ar re e n no ow w- -a a- -d da ay ys s g gi iv ve en n b by y a al lm mo os st t a al ll l t th he e b ba an nk ks s. . T Th he er re ef fo or re e i it t i is s v ve er ry y d di if ff fi ic cu ul lt t t to o
d di if ff fe er re en nt ti ia at te e o on ne es se el lf f f fr ro om m t th he e c co om mp pe et ti it to or rs s w wh he en n t th he er re e i is s l le es ss s s sc co op pe e f fo or r p po oi in nt t o of f d di if ff fe er re en nt ti ia at ti io on n. .
T Th he e a ad dv ve er rt ti is se em me en nt ts s t th ha at t P PN NB B c cr re ea at te es s s sh ho ou ul ld d t th he er re ef fo or re e b be e a ab bl le e t to o p po os si it ti io on n i it t i in n s su uc ch h a a w wa ay y t th ha at t
i it t m ma ak ke es s a an n i im mp pa ac ct t i in n t th he e m mi in nd ds s o of f c cu us st to om me er rs s a an nd d h he el lp ps s i in n c cr re ea at ti in ng g b br ra an nd d l lo oy ya al lt ty y. . I I s su ug gg ge es st t t th ha at t
P PN NB B s sh ho ou ul ld d b ba an nk k u up po on n o on ne e o or r t tw wo o a at tt tr ri ib bu ut te es s i in n o or rd de er r t to o l le ea av ve e a an n i im mp pa ac ct t i in n m mi in nd ds s o of f t th he e
c cu us st to om me er rs s. . F Fo ol ll lo ow wi in ng g a ar re e s so om me e o of f t th he e s su ug gg ge es st te ed d a at tt tr ri ib bu ut te es s o on n w wh hi ic ch h f fu ur rt th he er r d de et ta ai il le ed d r re es se ea ar rc ch h i is s
c ca ar rr ri ie ed d o on n: :
S Sa af fe et ty y a an nd d s se ec cu ur ri it ty y
U Us se er r f fr ri ie en nd dl ly y
Q Qu ui ic ck kn ne es ss s o of f t tr ra an ns sa ac ct ti io on ns s
I Im mp pr ro ov ve ed d t te ec ch hn no ol lo og gy y
B Be et tt te er r s se er rv vi ic ce es s
A Al ll l s so ol lu ut ti io on ns s i in n o on ne e
1 12 2. .4 4. .3 3 D De ev ve el lo op pi in ng g R Re es se ea ar rc ch h P Pl la an n: :
T Th he e d da at ta a f fo or r t th hi is s r re es se ea ar rc ch h p pr ro oj je ec ct t h ha as s b be ee en n c co ol ll le ec ct te ed d t th hr ro ou ug gh h s se el lf f a ad dm mi in ni is st tr ra at ti io on n. . D Du ue e t to o t ti im me e
l li im mi it ta at ti io on n a an nd d o ot th he er r c co on ns st tr ra ai in nt ts s d di ir re ec ct t p pe er rs so on na al l i in nt te er rv vi ie ew w m me et th ho od d i is s u us se ed d. . A A s st tr ru uc ct tu ur re ed d
q qu ue es st ti io on nn na ai ir re e w wa as s f fr ra am me ed d a as s i it t i is s l le es ss s t ti im me e c co on ns su um mi in ng g, , g ge en ne er ra at te es s s sp pe ec ci if fi ic c a an nd d t to o t th he e p po oi in nt t
i in nf fo or rm ma at ti io on n, , e ea as si ie er r t to o t ta ab bu ul la at te e a an nd d i in nt te er rp pr re et t. . M Mo or re eo ov ve er r r re es sp po on nd de en nt ts s p pr re ef fe er r t to o g gi iv ve e d di ir re ec ct t
a an ns sw we er rs s. . T Th he e q qu ue es st ti io on nn na ai ir re e h ha as s b be ee en n c cl lo os se e e en nd de ed d b bu ut t s su ug gg ge es st ti io on ns s f fr ro om m t th he e c cu us st to om me er rs s h ha av ve e
b be ee en n f fr ra am me ed d a as s t th he e s so ol lo o o op pe en n e en nd de ed d q qu ue es st ti io on ns s. . A An ny y s sp pe ec ci ia al l r re em ma ar rk ks s w wh hi ic ch h c cu us st to om me er rs s g ga av ve e
r re eg ga ar rd di in ng g a an ny y o of f t th he e a as sp pe ec ct ts s o of f t th he e c cl lo os se e e en nd de ed d q qu ue es st ti io on ns s h ha as s b be ee en n n no ot te ed d a an nd d p pr re es se en nt te ed d i in n
r re ec co om mm me en nd da at ti io on ns s o or r r re ef fl le ec ct te ed d i in n c co om mp pa an ny y͛ ͛s s s st tr re en ng gt th hs s ( (i if f t th he e c co om mm me en nt t i is s p po os si it ti iv ve e) ). .



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1 12 2. .4 4. .4 4 C Co ol ll le ec ct ti io on n o of f d da at ta a: :
S Se ec co on nd da ar ry y d da at ta a: :
I It t w wa as s c co ol ll le ec ct te ed d f fr ro om m i in nt te er rn na al l s so ou ur rc ce es s. . T Th he e s se ec co on nd da ar ry y d da at ta a w wa as s c co ol ll le ec ct te ed d o on n t th he e b ba as si is s o of f
o or rg ga an ni iz za at ti io on na al l p pr ro of fi il le e, , o of ff fi ic ci ia al l r re ec co or rd ds s, , n ne ew ws s p pa ap pe er rs s, , m ma ag ga az zi in ne es s, , m ma an na ag ge em me en nt t b bo oo ok ks s, , p pr re es se er rv ve ed d
i in nf fo or rm ma at ti io on n i in n c co om mp pa an ny y d da at ta ab ba as se e a an nd d w we eb bs si it te e o of f t th he e c co om mp pa an ny y. .
P Pr ri im ma ar ry y d da at ta a: :
T Th he e c cu us st to om me er rs s w wh ho o v vi is si it te ed d t th he e b ba an nk k w we er re e i in nt te er rv vi ie ew we ed d ( (t th ho os se e a al lr re ea ad dy y h ha av vi in ng g a an n a ac cc co ou un nt t w wi it th h
P PN NB B) ). . T Th he ey y w we er re e t th he e m ma ai in n s so ou ur rc ce e o of f p pr ri im ma ar ry y d da at ta a. . T Th he e m me et th ho od d o of f c co ol ll le ec ct ti io on n o of f p pr ri im ma ar ry y d da at ta a
w wa as s d di ir re ec ct t p pe er rs so on na al l i in nt te er rv vi ie ew w t th hr ro ou ug gh h a a s st tr ru uc ct tu ur re ed d q qu ue es st ti io on nn na ai ir re e. .
1 12 2. .4 4. .5 5S Sa am mp pl li in ng g p pl la an n: :
S Si in nc ce e i it t i is s n no ot t p po os ss si ib bl le e t to o s st tu ud dy y w wh ho ol le e u un ni iv ve er rs se e, , i it t b be ec co om me es s n ne ec ce es ss sa ar ry y t to o t ta ak ke e s sa am mp pl le e f fr ro om m t th he e
u un ni iv ve er rs se e t to o k kn no ow w a ab bo ou ut t i it ts s c ch ha ar ra ac ct te er ri is st ti ic cs s. .
S Sa am mp pl li in ng g U Un ni it ts s: : C Cu us st to om me er rs s o of f P Pu un nj ja ab b N Na at ti io on na al l B Ba an nk k v vi is si it ti in ng g t th he e b br ra an nc ch he es s
S Sa am mp pl le e T Te ec ch hn ni iq qu ue e: : R Ra an nd do om m S Sa am mp pl li in ng g. .
R Re es se ea ar rc ch h I In ns st tr ru um me en nt t: : S St tr ru uc ct tu ur re ed d Q Qu ue es st ti io on nn na ai ir re e. .
C Co on nt ta ac ct t M Me et th ho od d: : P Pe er rs so on na al l I In nt te er rv vi ie ew w. .
S Sa am mp pl li in ng g s si iz ze e: : M My y s sa am mp pl le e s si iz ze e f fo or r t th hi is s p pr ro oj je ec ct t w wa as s 3 30 0 r re es sp po on nd de en nt ts s. . S Si in nc ce e i it t w wa as s n no ot t p po os ss si ib bl le e t to o
c co ov ve er r t th he e w wh ho ol le e u un ni iv ve er rs se e i in n t th he e a av va ai il la ab bl le e t ti im me e p pe er ri io od d, , i it t w wa as s n ne ec ce es ss sa ar ry y f fo or r m me e t to o t ta ak ke e a a s sa am mp pl le e
s si iz ze e o of f 3 30 0 r re es sp po on nd de en nt ts s. .


41


1 12 2. .4 4. .6 6 D Da at ta a c co ol ll le ec ct ti io on n i in ns st tr ru um me en nt t d de ev ve el lo op pe ed d: :
T Th he e m mo od de e o of f c co ol ll le ec ct ti io on n o of f d da at ta a w wi il ll l b be e b ba as se ed d o on n s su ur rv ve ey y m me et th ho od d. . P Pr ri im ma ar ry y d da at ta a c co ol ll le ec ct ti io on n w wi il ll l b be e
b ba as se ed d o on n p pe er rs so on na al l i in nt te er rv vi ie ew w. . T Th he e q qu ue es st ti io on nn na ai ir re e h ha as s b be ee en n p pr re ep pa ar re ed d a ac cc co or rd di in ng gl ly y t to o g ge en ne er ra at te e t th he e
a am mo ou un nt t o of f i in nf fo or rm ma at ti io on n w wh hi ic ch h a ac cc co ou un nt t t to o c cu us st to om me er r s sa at ti is sf fa ac ct ti io on n i in n i in nt te er rn ne et t b ba an nk ki in ng g. .
1 12 2. .4 4. .7 7 R Re es se ea ar rc ch h l li im mi it ta at ti io on ns s: :
T Th he e r re es se ea ar rc ch h i is s c co on nf fi in ne ed d t to o a a s sa am mp pl le e o of f p po op pu ul la at ti io on n o on nl ly y a an nd d d do oe es s n no ot t n ne ec ce es ss sa ar ri il ly y s sh ho ow ws s
a a p pa at tt te er rn n a ap pp pl li ic ca ab bl le e t to o t th he e e en nt ti ir re e p po op pu ul la at ti io on n. . T Th he e t ti im me e p pe er ri io od d b be ei in ng g a ab bo ou ut t 5 56 6 d da ay ys s i it t
b be ec co om me es s i im mp po os ss si ib bl le e t to o c co ov ve er r a a l la ar rg ge e n nu um mb be er r o of f p po op pu ul la at ti io on n. .
I In n a a r ra ap pi id dl ly y c ch ha an ng gi in ng g i in nd du us st tr ry y, , a an na al ly ys si is s o on n o on ne e d da ay y o or r i in n o on ne e s se eg gm me en nt t c ca an n c ch ha an ng ge e v ve er ry y
q qu ui ic ck kl ly y. . T Th he e e en nv vi ir ro on nm me en nt ta al l c ch ha an ng ge es s a ar re e v vi it ta al l t to o b be e c co on ns si id de er re ed d i in n o or rd de er r t to o a as ss si im mi il la at te e t th he e
f fi in nd di in ng gs s a an nd d i in n s su uc ch h a a s sh ho or rt t d du ur ra at ti io on n a an n a ac cc cu ur ra at te e a an na al ly ys si is s w wa as s n no ot t p po os ss si ib bl le e. .
S So om me e r re es sp po on nd de en nt ts s w we er re e r re el lu uc ct ta an nt t t to o e ev ve en n r re es sp po on nd d. . M Ma an ny y r re es sp po on nd de en nt ts s w we er re e v ve er ry y c ca as su ua al l
i in n t th he ei ir r a an ns sw we er ri in ng g o of f t th he e q qu ue es st ti io on nn na ai ir re e a an nd d d di id d n no ot t g gi iv ve e d du ue e a at tt te en nt ti io on n w wh hi il le e a an ns sw we er ri in ng g. .
M Ma an ny y d da at ta a, , w wh hi ic ch h w wo ou ul ld d h ha av ve e r re ef fi in ne ed d t th he e p pr ro oj je ec ct t, , w we er re e u un na av va ai il la ab bl le e. .







42


1 12 2. .4 4. .8 8 Q Qu ue es st ti io on nn na ai ir re e
1 1. . D Do o y yo ou u u us se e i in nt te er rn ne et t b ba an nk ki in ng g s se er rv vi ic ce es s o of f P PN NB B? ?
Y Ye es s N No o

2 2. . I If f n no ot t, , w wh ha at t i is s/ /a ar re e t th he e r re ea as so on ns s f fo or r n no ot t a av va ai il li in ng g t th hi is s f fa ac ci il li it ty y? ?
N No ot t a aw wa ar re e t th ha at t s su uc ch h a a s se er rv vi ic ce e e ex xi is st ts s C Co om mp pl le ex x p pr ro oc ce ed du ur re es s f fo or r s st ta ar rt ti in ng g
D Di if ff fi ic cu ul lt ty y i in n o op pe er ra at ti io on ns s I In nt te er rn ne et t B Ba an nk ki in ng g o of f P PN NB B i is s n no ot t u us se er r f fr ri ie en nd dl ly y
T Tr ra an ns sa ac ct ti io on ns s a ar re e n no ot t s sp pe ee ed dy y I In nf fo or rm ma at ti io on n i is s n no ot t a av va ai il la ab bl le e e ea as si il ly y
S Se ec cu ur ri it ty y I Is ss su ue es s a ar re e a a c co on nc ce er rn n
O Ot th he er r


3 3. . W Wo ou ul ld d y yo ou u u us se e t th he es se e f fa ac ci il li it ti ie es s i if f y yo ou u a ar re e g gi iv ve en n a as ss si is st ta an nc ce e t th ha at t y yo ou u r re eq qu ui ir re e t to o u us se e i it t? ?
D De ef fi in ni it te el ly y P Pr ro ob ba ab bl ly y U Un nc ce er rt ta ai in n
P Pr ro ob ba ab bl ly y n no ot t D De ef fi in ni it te el ly y n no ot t

4 4. . I If f y yo ou u r re eq qu ui ir re e a as ss si is st ta an nc ce e w we e w wo ou ul ld d a ap pp pr re ec ci ia at te e i if f y yo ou u p pr ro ov vi id de e u us s w wi it th h y yo ou ur r c co on nt ta ac ct t d de et ta ai il ls s. .
( (O Op pt ti io on na al l) )








43


Q Qu ue es st ti io on nn na ai ir re e f fo or r p pe eo op pl le e u us si in ng g P PN NB B i in nt te er rn ne et t b ba an nk ki in ng g
1 1. . P Pl le ea as se e M Ma ar rk k я я f fo or r y yo ou ur r c ch ho oi ic ce es s. .
I I a am m a aw wa ar re e. . I I h ha av ve e u us se ed d a at t l le ea as st t o on nc ce e. . I I u us se e f fr re eq qu ue en nt tl ly y. .
A Ac cc co ou un nt t V Vi ie ew wi in ng g
e e- -P Pa ay y f fo or r B Bi il ll ls s
e e- -R Re em mi it t/ /F Fu un nd d T Tr ra an ns sf fe er r
e e- -T Tr ra ad di in ng g
e e- -P Pa ay ym me en nt t o of f D Di ir re ec ct t T Ta ax xe es s
e e- -P Pa ay ym me en nt t o of f C Ce en nt tr ra al l E Ex xc ci is se e
a an nd d S Se er rv vi ic ce e T Ta ax xe es s

e e- -T Ti ic ck ke et t f fo or r A Ai ir r o or r R Ra ai il l T Tr ra av ve el l

2 2. . H Ho ow w m mu uc ch h a ar re e y yo ou u s sa at ti is sf fi ie ed d w wi it th h I In nt te er rn ne et t B Ba an nk ki in ng g o of f P PN NB B? ?
V Ve er ry y M Mu uc ch h S Sa at ti is sf fi ie ed d S Sa at ti is sf fi ie ed d n ne ei it th he er r S Sa at ti is sf fi ie ed d n no or r D Di is ss sa at ti is sf fi ie ed d
D Di is ss sa at ti is sf fi ie ed d V Ve er ry y M Mu uc ch h D Di is ss sa at ti is sf fi ie ed d

3 3. . H Ho ow w f fr re eq qu ue en nt tl ly y d do o y yo ou u e en nc co ou un nt te er r p pr ro ob bl le em m i in n P PN NB B- -I In nt te er rn ne et t B Ba an nk ki in ng g? ?
V Ve er ry y f fr re eq qu ue en nt tl ly y F Fr re eq qu ue en nt tl ly y N No ot t o of ft te en n
R Ra ar re el ly y V Ve er ry y r ra ar re el ly y

4 4. . W Wh ha at t p pr ro ob bl le em ms s d do o y yo ou u g ge en ne er ra al ll ly y e en nc co ou un nt te er r w wh hi il le e u us si in ng g t th he e I In nt te er rn ne et t B Ba an nk ki in ng g o of f P PN NB B? ?


5 5. . P Pl le ea as se e M Ma ar rk k я я f fo or r y yo ou ur r c ch ho oi ic ce es s. .

44

S St tr ro on ng gl ly y
A Ag gr re ee e
A Ag gr re ee e N Ne eu ut tr ra al l D Di is sa ag gr re ee e S St tr ro on ng gl ly y
D Di is sa ag gr re ee e
I In nt te er rn ne et t B Ba an nk ki in ng g s se ec ct ti io on n o of f P PN NB B
w we eb bs si it te e i is s i in nf fo or rm ma at ti iv ve e. .

I In nt te er rn ne et t B Ba an nk ki in ng g s se ec ct ti io on n o of f P PN NB B
w we eb bs si it te e i is s c cl lu ut tt te er re ed d w wi it th h c co on nt te en nt t

R Re eq qu ue es st ts s a an nd d c co om mp pl la ai in nt ts s a ar re e t ti im me el ly y
a ad dd dr re es ss se ed d. .

P PN NB B S St ta af ff f a as ss so oc ci ia at te ed d w wi it th h I In nt te er rn ne et t
B Ba an nk ki in ng g i is s h he el lp pf fu ul l. .

I In nt te er rn ne et t B Ba an nk ki in ng g o of f P PN NB B i is s s se ec cu ur re ed d. .
I In nt te er rn ne et t B Ba an nk ki in ng g o of f P PN NB B c ca at te er rs s t to o
a al ll l m my y b ba an nk ki in ng g n ne ee ed ds s. .


6 6. . W Wh ha at t c ch ha an ng ge es s d do o y yo ou u s su ug gg ge es st t f fo or r w we eb bs si it te e o of f P PN NB B i in nt te er rn ne et t b ba an nk ki in ng g i in n t te er rm ms s o of f i it ts s a ap pp pe ea ar ra an nc ce e? ?



7 7. . H He el lp pl li in ne e A As ss si is st ta an nc ce e p pr ro ov vi id de ed d w wi it th h I In nt te er rn ne et t B Ba an nk ki in ng g: :

V Ve er ry y
S Sa at ti is sf fi ie ed d
S Sa at ti is sf fi ie ed d N Ne eu ut tr ra al l D Di is ss sa at ti is sf fi ie ed d V Ve er ry y
D Di is ss sa at ti is sf fi ie ed d
C Ca al ll l h ha an nd dl le ed d p pr ro op pe er rl ly y a an nd d n no ot t
k ke ep pt t o on n h ho ol ld d

C Co ou ur rt te eo ou us s a an nd d P Pr ro of fe es ss si io on na al l
m ma an nn ne er rs s s sh ho ow wn n o on n c ca al ll l. .

Q Qu ui ic ck kl ly y A An ns sw we er re ed d

8 8. . K Ki in nd dl ly y p pu ut t t th he e t ti ic ck k o on n t th he e w wo or rd d w wh hi ic ch h y yo ou u f fe ee el l a ap pp pr ro op pr ri ia at te e f fo or r I In nt te er rn ne et t B Ba an nk ki in ng g S Se er rv vi ic ce e o of f P PN NB B: :


45

E Ea as sy y C Co om mp pl li ic ca at te ed d
S Sa af fe e R Ri is sk ky y
Q Qu ui ic ck k/ / P Pr ro om mp pt t S Sl lo ow w/ / D De el la ay ye ed d
E Ex xc ce el ll le en nt t P Po oo or r
9 9. . H Ha av ve e y yo ou u u us se ed d I In nt te er rn ne et t B Ba an nk ki in ng g o of f a an ny y o ot th he er r b ba an nk k? ?
Y Ye es s N No o
1 10 0. . H Ho ow w d do o y yo ou u d de es sc cr ri ib be e P PN NB B i in nt te er rn ne et t B Ba an nk ki in ng g c co om mp pa ar re ed d t to o t th he e o ot th he er r b ba an nk ks s? ?
V Ve er ry y G Go oo od d G Go oo od d A At t P Pa ar r P Po oo or r V Ve er ry y P Po oo or r


1 11 1. . D Do o y yo ou u h ha av ve e a an ny y s su ug gg ge es st ti io on ns s f fo or r P PN NB B w wh hi ic ch h c ca an n h he el lp p P PN NB B i im mp pr ro ov ve e t th he e s se er rv vi ic ce e l le ev ve el l? ? P Pl le ea as se e d do o
m me en nt ti io on n y yo ou ur r s su ug gg ge es st ti io on ns s r re eg ga ar rd di in ng g t th he e I In nt te er rn ne et t B Ba an nk ki in ng g P Pr ro od du uc ct ts s y yo ou u w wo ou ul ld d e ex xp pe ec ct t f fr ro om m B Ba an nk k
w wh hi ic ch h a ar re e n no ot t c cu ur rr re en nt tl ly y P Pr ro ov vi id de ed d. .


1 12 2. . W Wo ou ul ld d y yo ou u r re ec co om mm me en nd d I In nt te er rn ne et t B Ba an nk ki in ng g o of f P PN NB B t to o y yo ou ur r f fr ri ie en nd d, , r re el la at ti iv ve e o or r a an n a as ss so oc ci ia at te e? ?
D De ef fi in ni it te el ly y P Pr ro ob ba ab bl ly y U Un nc ce er rt ta ai in n
P Pr ro ob ba ab bl ly y n no ot t d de ef fi in ni it te el ly y n no ot t





46

1 12 2. .4 4. .9 9 A An na al ly ys si is s a an nd d i in nt te er rp pr re et ta at ti io on n t th hr ro ou ug gh h E EX XC CE EL L: :
1 1) )

I In nt te er rp pr re et ta at ti io on n: : O On nl ly y 4 40 0% % o of f t th he e P PN NB B c cu us st to om me er rs s a ac ct tu ua al ll ly y u us se e P PN NB B i in nt te er rn ne et t b ba an nk ki in ng g
f fa ac ci il li it ti ie es s. . T Th hi is s s sh ho ow ws s u us s t th ha at t P PN NB B h ha as s n no ot t b be ee en n a ab bl le e t to o a at tt tr ra ac ct t i it ts s e ex xi is st ti in ng g c cu us st to om me er rs s t to o
i in nt te er rn ne et t b ba an nk ki in ng g, , l le et t a al lo on ne e b be e n ne ew w c cu us st to om me er rs s. . T Th hi is s d da at ta a w wa as s t ta ak ke en n f fr ro om m a an n u ur rb ba an n a ar re ea a, ,
i in n w wh hi ic ch h P PN NB B c cu us st to om me er rs s a ar re e m mo or re e t te ec ch hs sa av vy y a as s c co om mp pa ar re ed d t to o t th he e r ru ur ra al l a ar re ea as s w wh he er re e P PN NB B
h ha as s m ma ax xi im mu um m n no o. . o of f c cu us st to om me er rs s b bu ut t t th he es se e a ar re e n no ot t t th ha at t t te ec ch hs sa av vy y a as s y ye et t. .
12
18
PNB customers using internet banking
services
YES
NO

47

2 2) )

I In nt te er rp pr re et ta at ti io on n: : F Fr ro om m t th he e a ab bo ov ve e c ch ha ar rt t i it t c ca an n b be e c cl le ea ar rl ly y u un nd de er rs st to oo od d t th ha at t s se ec cu ur ri it ty y i is ss su ue es s i is s
a an n a ar re ea a o of f c co on nc ce er rn n f fo or r P PN NB B i in nt te er rn ne et t b ba an nk ki in ng g. . O Ot th he er r a ar re ea a o of f c co on nc ce er rn n i is s s sl lo ow wn ne es ss s o of f
t tr ra an ns sa ac ct ti io on ns s. . P Pe er rs so on na al l i in nt te er ra ac ct ti io on n w wi it th h c cu us st to om me er rs s a an nd d t th he e C Cu us st to om me er r C Ca ar re e O Of ff fi ic ce er rs s g ga av ve e
u us s t th he e a ac ct tu ua al l p pr ro ob bl le em m a ar re ea a a an nd d t th he e s su ug gg ge es st te ed d s so ol lu ut ti io on n t to o t th hi is s i is ss su ue e. .
P Ph hi is sh hi in ng g s sc ca am ms s i in n I In nt te er rn ne et t B Ba an nk ki in ng g: :
F Fr ra au ud ds st te er rs s c ca an n g ge et t p pe er rs so on na al l i in nf fo or rm ma at ti io on n f fr ro om m b ba an nk k͛ ͛s s c cu us st to om me er rs s t th hr ro ou ug gh h e em ma ai il ls s a an nd d
p ph ho on ne es s. . T Th he es se e a ar re e v ve er ry y c cl le ev ve er rl ly y c ca am mo ou uf fl la ag ge ed d a an nd d a ap pp pe ea ar r t to o b be e o or ri ig gi in na at ti in ng g f fr ro om m t th he e
b ba an nk k i it ts se el lf f. .
I In nf fo or rm ma at ti io on n c co ou ul ld d a al ls so o g ge et t s si ip ph ho on ne ed d o of ff f w wh hi il le e t th he e c cu us st to om me er r i is s l lo og gg ge ed d o on n t to o t th he e b ba an nk k͛ ͛s s
w we eb bs si it te e. . T Th hi is s h ha ap pp pe en ns s t th hr ro ou ug gh h p po op p- -u up ps s, , w wh hi ic ch h a ap pp pe ea ar r a al lo on ng gs si id de e b ba an nk k͛ ͛s s w we eb bp pa ag ge e a as sk ki in ng g
u un ns su us sp pe ec ct ti in ng g u us se er rs s t to o d di is sc cl lo os se e c co on nf fi id de en nt ti ia al l i in nf fo or rm ma at ti io on n. .
O Ot th he er r r re eq qu ue es st ts s m mi ig gh ht t d dr ra aw w t th he e c cu us st to om me er rs s t to o b be e a a p pa ar rt t o of f t th he e s su ur rv ve ey y. .
T Th he e c co on nv ve en ni ie en nc ce e o of f i in nt te er rn ne et t b ba an nk ki in ng g c ca an n b be e c co om mp pa ar re ed d t to o e el le ec ct tr ri ic ci it ty y. . I It t h ha as s t to o b be e u us se ed d
w wi it th h c ca ar re e t to o p pr re ev ve en nt t r ru ud de e s sh ho oc ck ks s. .
P Pr ro ob bl le em ms s r re eg ga ar rd di in ng g s sp pe ee ed d o of f t th he e t tr ra an ns sa ac ct ti io on ns s: :
T Th he e c cu us st to om me er rs s a ar re e o of f t th he e o op pi in ni io on n t th ha at t P PN NB B i in nt te er rn ne et t b ba an nk ki in ng g i is s n no ot t t th he e s sp pe ee ed dy y. . T Th he er re e a ar re e
s se er rv ve er r p pr ro ob bl le em ms s w wh he er re e i in nt te er rn ne et t b ba an nk ki in ng g f fa ac ci il li it ty y d do oe es sn n͛ ͛t t w wo or rk k e ef ff fe ec ct ti iv ve el ly y. . T Th hi is s p pr ro ob bl le em m
1
2
2
4
8
1
Reason for not using PNB internet banking
facilities
Complex procedures for starting
Difficulty in operations
Internet banking of PNB not user
friendly
Transactions not speedy
Security issues are a concern
Do not need

48

o oc cc cu ur rs s e es sp pe ec ci ia al ll ly y o on n S Su un nd da ay ys s. . W Wh he en n t th he e b ba an nk ks s a ar re e a al ls so o c cl lo os se ed d, , s so o i it t b be ec co om me es s v ve er ry y
d di if ff fi ic cu ul lt t f fo or r t th he e c cu us st to om me er rs s t to o f fu ul lf fi il ll l t th he ei ir r n ne ee ed ds s a as s t th he ey y h ha ad d t tr ru us st te ed d o on n t th he e P PN NB B N Ne et t
B Ba an nk ki in ng g 2 24 4x x7 7x x3 36 65 5 d da ay ys s s se er rv vi ic ce e a an nd d t th he ey y g ge et t d di is sa ap pp po oi in nt te ed d. .
3 3) )

I In nt te er rp pr re et ta at ti io on n: : t th he e a ab bo ov ve e c ch ha ar rt t s sh ho ow ws s t th ha at t a al lm mo os st t a al ll l t th he e P PN NB B N Ne et t B Ba an nk ki in ng g u us se er rs s a ar re e
a aw wa ar re e o of f t th he e v va ar ri io ou us s f fa ac ci il li it ti ie es s t th he e P PN NB B o of ff fe er rs s. . E E- -t tr ra ad di in ng g a an nd d E E- -p pa ay ym me en nt t o of f t ta ax xe es s a ar re e t th he e
o on ne es s t th ha at t n no on ne e o of f t th he e P PN NB B c cu us st to om me er rs s h ha av ve e t tr ri ie ed d. .
0
2
4
6
8
10
12
I am aware I ave used
atleast once
I use frequently
12
2
10
12
2
10
8
5 5
4 4
10
8
Account viewing
E-pay for bills
E-remit/funds transfer
E-trading
E-payment of direct taxes
E-payment of central excise &
service tax
E-ticket for air & rail travel

49

4 4) )

I In nt te er rp pr re et ta at ti io on n: : W We e h ha av ve e g go ot t m mi ix xe ed d v vi ie ew ws s r re eg ga ar rd di in ng g P PN NB B i in nt te er rn ne et t b ba an nk ki in ng g s sa at ti is sf fa ac ct ti io on n o of f
t th he e c cu us st to om me er rs s. . N No ot th hi in ng g c ca an n b be e i in nt te er rp pr re et te ed d o ou ut t o of f t th hi is s c ch ha ar rt t. . T Th he e o on nl ly y c co on nc cl lu us si io on n w we e c ca an n
d dr ra aw w i is s t th ha at t P PN NB B h ha as s f fa ai il le ed d t to o s sa at ti is sf fy y m ma ax xi im mu um m n no o. . o of f i it ts s c cu us st to om me er rs s f fo or r i in nt te er rn ne et t b ba an nk ki in ng g. .
5 5) )
S St tr ro on ng gl ly y a ag gr re ee e A Ag gr re ee e N Ne eu ut tr ra al l D Di is sa ag gr re ee e S St tr ro on ng gl ly y d di is sa ag gr re ee e
W We eb bs si it te e i is s
i in nf fo or rm ma at ti iv ve e
1 12 2
W We eb bs si it te e i is s c cl lu ut tt te er re ed d
w wi it th h c co on nt te en nt t
8 8 1 1 3 3
C Co om mp pl la ai in nt ts s a ar re e
t ti im me el ly y a ad dd dr re es ss se ed d
6 6 4 4 2 2
S St ta af ff f i is s h he el lp pf fu ul l 9 9 3 3
N Ne et t B Ba an nk ki in ng g i is s
s se ec cu ur re ed d
8 8 2 2 2 2
C Ca at te er rs s t to o a al ll l t th he e
b ba an nk ki in ng g n ne ee ed ds s
4 4 6 6 2 2
3
2
2
4
1
Satisfaction level of PNB Internet Banking
users
Very much satisfied
Satisfied
Neither satisfied nor dissatisfied
Dissatisfied
Very much dissatisfied

50

6 6) ) W Wo or rd ds s a ap pp pr ro op pr ri ia at te e f fo or r P PN NB B N Ne et t B Ba an nk ki in ng g: :


I In nt te er rp pr re et ta at ti io on n: : I In n t th he e m mi in nd ds s o of f t th he e c cu us st to om me er rs s, , i in nt te er rn ne et t b ba an nk ki in ng g o of f P PN NB B i is s e ea as sy y a an nd d e ex xc ce el ll le en nt t, ,
b bu ut t a at t t th he e s sa am me e t ti im me e i it t i is s a a b bi it t r ri is sk ky y. .





8
4
Easy
5
7
Safe
Risky
6
6
Quick/Pro
mpt
10
2
Excellent
Poor

51

7 7) )

I In nt te er rp pr re et ta at ti io on n: : P PN NB B N Ne et t B Ba an nk ki in ng g h ha as s c cr re ea at te ed d a an n a av ve er ra ag ge e i im ma ag ge e i in n t th he e m mi in nd ds s o of f t th he e c cu us st to om me er rs s. .
C Cu us st to om me er rs s d do o n no ot t s se ee e a an ny yt th hi in ng g e ex xt tr ra a g gi iv ve en n t to o t th he em m b by y P PN NB B N Ne et t B Ba an nk ki in ng g. . T Th he e f fa ac ci il li it ti ie es s g gi iv ve en n b by y
P PN NB B a ar re e g gi iv ve en n b by y o ot th he er r b ba an nk ks s a al ls so o. . I In n o or rd de er r t to o d di is st ti in ng gu ui is sh h i it ts se el lf f f fr ro om m t th he e c co om mp pe et ti it to or rs s P PN NB B
s sh ho ou ul ld d c co om me e u up p w wi it th h s st tr ra at te eg gi ie es s t th ha at t w wi il ll l e en ns su ur re e a a b be et tt te er r a an nd d a a d di is st ti in nc ct ti iv ve e b br ra an nd d i im ma ag ge e i in n t th he e
m mi in nd ds s o of f t th he e c cu us st to om me er rs s. .






2
3
5
1
1
escription of et anking Services
Very good
Good
At par
Poor
Very poor

52

1 12 2. .4 4. .1 10 0 O Ot th he er r A An na al ly yt ti ic ca al l T To oo ol ls s: :
1 12 2. .4 4. .1 10 0. .1 1 S SW WO OT T A An na al ly ys si is s: :




Strengths
ͻEasy to transact
ͻStrong brand image
ͻLess complicated
ͻ24x7x365 days availability
ͻTech savy
ͻHighly volatile CBS system
Weakness
ͻPoor infrastructure which cause server problems
ͻLess no. of tech savy customers
ͻPoorly defined target group
ͻIneffective marketing of internet banking
ͻFrequent link failures bringing activities to halt
Opportuniti
es
ͻFurther development in internet banking
ͻTraining staff using computer aided softwares
ͻHuge netowrk of traditional banking customers
ͻMore and more Indians becoming tech savy
ͻIncreasing youth poulation which prefer e-banking over traditional banking
solutions
Threats
ͻPrivate sector banks more consumer friendly
ͻInternet banking of SBI more popular over PNB
ͻYoung generation does not have a very positive image about the bank (obsolete
and not eye catching) so they are reluctant to use PNB internet banking
ͻPNB not very as popular in urban areas as in rural areas

53


1 12 2. .4 4. .1 10 0. .2 2 P Po or rt te er r͛ ͛s s 5 5 f fo or rc ce es s m mo od de el l: :
I In nt te en ns si it ty y o of f r ri iv va al lr ry y a am mo on ng g t th he e i in nd du us st tr ry y i is s
h hi ig gh h a as s S St ta at te e B Ba an nk k o of f I In nd di ia a a an nd d I IC CI IC CI I B Ba an nk k a ar re e
i it ts s m ma ai in n c co om mp pe et ti it to or rs s. . T Th he e s se er rv vi ic ce es s o of ff fe er re ed d
a ar re e u un nd di if ff fe er re en nt ti ia at te ed d. . T Th he er re e a ar re e t to oo o m ma an ny y
p pl la ay ye er rs s i in n t th he e m ma ar rk ke et t a an nd d t th he e c cu us st to om me er r
p pr re ef fe er rs s i in nt te er rn ne et t b ba an nk ki in ng g w wh he er re ev ve er r h he e g ge et ts s
b be et tt te er r f fa ac ci il li it ti ie es s a an nd d i im mp pr ro ov ve ed d s se er rv vi ic ce es s. .

B Ba ar rg ga ai in ni in ng g p po ow we er r o of f b bu uy ye er rs s i is s h hi ig gh h b be ec ca au us se e s sw wi it tc ch hi in ng g c co os st ts s a ar re e l lo ow w f fo or r t th he e n ne et t u us se er rs s. . P Pe eo op pl le e
u us se e m mo or re e t th ha an n o on ne e i in nt te er rn ne et t b ba an nk k a ac cc co ou un nt t a an nd d t th hu us s a av va ai il l t th he e f fa ac ci il li it ti ie es s o of f m mo or re e t th ha an n o on ne e b ba an nk k. .
B Ba ar rg ga ai in ni in ng g p po ow we er r o of f s su up pp pl li ie er rs s i is s m mo od de er ra at te e a as s t th he e s sw wi it tc ch hi in ng g c co os st t i is s n no ot t v ve er ry y h hi ig gh h. . A Al ls so o t th he er re e a ar re e
m ma an ny y p pl la ay ye er rs s o of ff fe er ri in ng g s si im mi il la ar r s se er rv vi ic ce es s, , t th hu us s t th he e s se er rv vi ic ce es s a ar re e g ge en ne er ra al ll ly y u un nd di if ff fe er re en nt ti ia at te ed d. . B Bu ut t l lo on ng g
a as ss so oc ci ia at ti io on ns s w wi it th h a a p pa ar rt ti ic cu ul la ar r b ba an nk k g ge en ne er ra at te e c cu us st to om me er r l lo oy ya al lt ty y a an nd d u un nw wi il ll li in ng gn ne es ss s t to o s sw wi it tc ch h. . T Th hi is s
a as sp pe ec ct t i is s m mo or re e t to o d do o w wi it th h t th he e b be eh ha av vi io or ra al l a as sp pe ec ct t o of f c cu us st to om me er r. .
T Th hr re ea at t o of f s su ub bs st ti it tu ut te es s i is s m mo od de er ra at te e b be ec ca au us se e w we e s se ee e m mo or re e a an nd d m mo or re e f fo or re ei ig gn n b ba an nk ks s h ha av vi in ng g t ti ie e u up ps s
w wi it th h I In nd di ia an n c co om mp pa an ni ie es s a an nd d c co om mi in ng g u up p w wi it th h m mo or re e a an nd d m mo or re e t te ec ch hs sa av vy y s so ol lu ut ti io on ns s t to o t tr ra ad di it ti io on na al l
b ba an nk ki in ng g. . H Ho ow we ev ve er r t th he e l le eg ga al l f fr ra am me ew wo or rk k o of f I In nd di ia a h ha as s p pr re ev ve en nt te ed d t th hi is s t th hr re ea at t t to o a a l la ar rg ge e e ex xt te en nt t. .
R Ri is sk k o of f e en nt tr ry y b by y p po ot te en nt ti ia al l c co om mp pe et ti it to or rs s i is s l lo ow w b be ec ca au us se e t th he e c co os st t o of f e en nt tr ry y i is s v ve er ry y h hi ig gh h, , e ex xp pe er ri ie en nc ce e
c cu ur rv ve e, , t th he er re e a ar re e t to oo o m mu uc ch h l le eg ga al l c co om mp pl li ia an nc ce es s t to o b be e m me et t, , g go ov ve er rn nm me en nt t l le eg gi is sl la at ti io on ns s a ar re e h hi ig gh h, , b br ra an nd d
i id de en nt ti it ty y i is s s st tr ro on ng g a an nd d d di is st tr ri ib bu ut ti io on n c ch ha an nn ne el ls s ( (n nu um mb be er r o of f b br ra an nc ch he es s) ) r re eq qu ui ir re e t ti im me e a an nd d c ca ap pi it ta al l t to o b be e
d de ev ve el lo op pe ed d. .


54


1 12 2. .4 4. .1 10 0. .3 3 A An ns so of ff f͛ ͛s s P Pr ro od du uc ct t- - M Ma ar rk ke et t M Mi ix x: :
E Ex xi is st ti in ng g P Pr ro od du uc ct ts s N Ne ew w P Pr ro od du uc ct ts s
E Ex xi is st ti in ng g
M Ma ar rk ke et ts s


M Ma ar rk ke et t P Pe en ne et tr ra at ti io on n



P Pr ro od du uc ct t D De ev ve el lo op pm me en nt t

N Ne ew w
M Ma ar rk ke et ts s


M Ma ar rk ke et t D De ev ve el lo op pm me en nt t



D Di iv ve er rs si if fi ic ca at ti io on n


T Th he e p pr ro op po os se ed d s st tr ra at te eg gy y i is s m ma ar rk ke et t p pe en ne et tr ra at ti io on n b be ec ca au us se e: :
P Pr ro od du uc ct ts s o of ff fe er re ed d c ca an nn no ot t b be e d di if ff fe er re en nt ti ia at te ed d t to oo o m mu uc ch h, , s so o t th he er re e i is s l le es ss s s sc co op pe e f fo or r p pr ro od du uc ct t
d de ev ve el lo op pm me en nt t. .
H Hi ig gh hl ly y c co om mp pe et ti it ti iv ve e i in nd du us st tr ry y a as s t th he e n nu um mb be er r o of f r ri iv va al ls s i is s v ve er ry y h hi ig gh h t tr ry yi in ng g t to o s sn na at tc ch h o ov ve er r t th he e
c co om mp pe et ti it to or r͛ ͛s s c cu us st to om me er rs s. .
T Th he e i in nd du us st tr ry y d de em ma an nd ds s a a l lo on ng g t te er rm m r re el la at ti io on ns sh hi ip p b ba as se ed d o on n c cu us st to om me er r t tr ru us st t a an nd d
c co on nv ve en ni ie en nc ce e s so o i if f t th he e b ba an nk k g go oe es s o on n i in nc cr re ea as si in ng g i it ts s c cu us st to om me er r b ba as se e w wi it th ho ou ut t s se er rv vi in ng g t to o t th he e
n ne ee ed ds s o of f e ex xi is st ti in ng g c cu us st to om me er rs s a ad de eq qu ua at te el ly y t th he ey y m mi ig gh ht t s sh hi if ft t t to o c co om mp pe et ti it to or rs s. . I It t i is s i im mp po or rt ta an nt t
t to o p pr ra ac ct ti ic ce e r re et te en nt ti io on n m ma ar rk ke et ti in ng g h he er re e. .
M Ma ar rk ke et t d de ev ve el lo op pm me en nt t i is s a al ls so o a a s st tr ra at te eg gy y t th ha at t s sh ho ou ul ld d b be e a ad do op pt te ed d b bu ut t n no ot t a at t t th he e c co os st t o of f t th he e
e ex xi is st ti in ng g c cu us st to om me er rs s b be ec ca au us se e n ne ew w m ma ar rk ke et t s se eg gm me en nt ts s e em me er rg ge e d du ue e t to o c ch ha an ng ge es s i in n c co on ns su um me er r
l li if fe es st ty yl le es s o or r d de em mo og gr ra ap ph hi ic cs s. . I It t s sh ho ou ul ld d t tr ry y a an nd d a ap pp pe ea al l t to o m ma ar rk ke et t s se eg gm me en nt ts s i it t i is s n no ot t y ye et t s sa at ti is sf fy yi in ng g- -
y yo ou un ng g p pr ro of fe es ss si io on na al ls s. .


55

1 12 2. .4 4. .1 11 1 S St tr ra at te eg gi ie es s f fo or r r re eb br ra an nd di in ng g o of f P PN NB B N Ne et t B Ba an nk ki in ng g: :
I If f P PN NB B w wa an nt ts s t to o i in nc cr re ea as se e i it ts s r re ea ac ch h i in n I In nd di ia a, , i it t h ha as s t to o t ta ar rg ge et t t th he e u un nt ta ap pp pe ed d m ma ar rk ke et t. . P PN NB B
s sh ho ou ul ld d r re ea ac ch h t th he e I In nd di ia an n y yo ou ut th h s so o a as s t to o i in nc cr re ea as se e i it ts s c cu us st to om me er r b ba as se e. . T To od da ay y͛ ͛s s y yo ou ut th h i is s
t te ec ch hs sa av vy y a an nd d c ca an n u un nd de er rs st ta an nd d t th he e P PN NB B i in nt te er rn ne et t b ba an nk ki in ng g b be et tt te er r. . T Th he e y yo ou ut th h t to od da ay y i is s v ve er ry y
s sk ke ep pt ti ic ca al l a ab bo ou ut t P PS SU Us s. . T Th he ey y a ar re e o of f t th he e o op pi in ni io on n t th ha at t p pr ri iv va at te e b ba an nk ks s a ar re e m mo or re e c co on nv ve en ni ie en nt t
a an nd d m mo or re e c co on ns su um me er r f fr ri ie en nd dl ly y. . I In n o or rd de er r t to o c ch ha an ng ge e t th hi is s a at tt ti it tu ud de e o of f t th he e y yo ou ut th h a an nd d m ma ak ke e
t th he em m a ad da ap pt ta ab bl le e t to o P PS SU Us s, , P PN NB B s sh ho ou ul ld d i in ni it ti ia at te e h hu ug ge e a ad dv ve er rt ti is si in ng g c ca am mp pa ai ig gn ns s w wh hi ic ch h w wi il ll l b be e
t ta ar rg ge et te ed d t to o t th he e y yo ou ut th h a an nd d w wh hi ic ch h w wi il ll l s sp pr re ea ad d t th he e m me es ss sa ag ge e o of f c co on nv ve en ni ie en nc ce e. .
S Su ug gg ge es st te ed d t ta ag g l li in ne es s f fo or r P PN NB B N Ne et t B Ba an nk ki in ng g: :
Y Yo ou ur r m mo on ne ey y͙ ͙j ju us st t a a c cl li ic ck k a aw wa ay y! !! !! !
B Ba an nk ki in ng g n no ow w j ju us st t a a c cl li ic ck k a aw wa ay y! !! !! !
S Se ec cu ur ri it ty y i is s o ou ur r p pr ri io or ri it ty y͙ ͙c co on nv ve en ni ie en nc ce e i is s y yo ou ur r r ri ig gh ht t, ,
T To og ge et th he er r w we e m ma ak ke e y yo ou ur r b ba an nk ki in ng g e ex xp pe er ri ie en nc ce e b br ri ig gh ht t! !! !! !
I In n o or rd de er r t to o r re ea ac ch h o ou ut t t to o t th he e y yo ou ut th h s so oc ci ia al l n ne et tw wo or rk ki in ng g s si it te es s l li ik ke e F Fa ac ce e b bo oo ok k, , T Tw wi it tt te er r, , O Or rk ku ut t, ,
L Li in nk ke ed dI In n c ca an n b be e o of f g gr re ea at t u us se e. .
T Th he e b be es st t w wa ay y t to o r re ea ac ch h o ou ut t t to o t th he e t ta ar rg ge et t c cu us st to om me er rs s i is s t to o m ma ak ke e P PN NB B m mo or re e u us se er r- - f fr ri ie en nd dl ly y. . I In n
o or rd de er r t to o d do o t th hi is s t th he e e em mp pl lo oy ye ee es s w wi il ll l h ha av ve e t to o b be e t tr ra ai in ne ed d a ab bo ou ut t t th he e w wo or rk ki in ng g o of f t th he e i in nt te er rn ne et t
b ba an nk ki in ng g w we eb bs si it te e s so o t th ha at t t th he ey y c ca an n h he el lp p s so ol lv ve e t th he e c cu us st to om me er r q qu ue er ri ie es s b be et tt te er r. .
O On ne e m mo or re e s st tr ra at te eg gy y c co ou ul ld d b be e t to o g go o f fo or r r re et te en nt ti io on n m ma ar rk ke et ti in ng g, , e es sp pe ec ci ia al ll ly y f fo or r d di ia am mo on nd d
c cu us st to om me er rs s, , r ra at th he er r t th ha an n t ta ar rg ge et ti in ng g c cu us st to om me er rs s l lo ow w o on n n ne et t w wo or rt th h. .
T Th he e t tr re en nd d s su ug gg ge es st ts s t th ha at t P PN NB B h ha as s a al lw wa ay ys s b be ee en n l lo ow w o on n a ad dv ve er rt ti is si in ng g. . I It t h ha as sn n͛ ͛t t a ad dv ve er rt ti is se ed d
m mu uc ch h f fo or r i it ts s t tr ra ad di it ti io on na al l b ba an nk ki in ng g f fa ac ci il li it ti ie es s a as s w we el ll l. . L Le et t a al lo on ne e b be e t th he e n ne ew wl ly y i in ni it ti ia at te ed d
s se er rv vi ic ce es s l li ik ke e e e- -b ba an nk ki in ng g. . A A r re eb br ra an nd di in ng g e ex xe er rc ci is se e w wi il ll l b be e s su uc cc ce es ss sf fu ul l o on nl ly y w wh he en n P PN NB B i in nv ve es st ts s
i in n h he ea av vy y a ad dv ve er rt ti is se em me en nt t c ca am mp pa ai ig gn ns s f fo or r i it ts s e e- -b ba an nk ki in ng g f fa ac ci il li it ti ie es s. . T Th hi is s f fa ac ci il li it ti ie es s a ar re e a at t a a v ve er ry y
n na as sc ce en nt t s st ta ag ge e a an nd d i in n o or rd de er r t to o s su ur rv vi iv ve e i in n t th he e r ra ac ce e o of f b be ei in ng g t th he e m mo os st t t te ec ch hs sa av vy y b ba an nk k, , P PN NB B
w wi il ll l h ha av ve e t to o t ta ak ke e h he el lp p o of f h hu ug ge e a ad dv ve er rt ti is si in ng g i in n: :
P Pr ri in nt t m me ed di ia a a an nd d t te el le ev vi is si io on n
I In nt te er rn ne et t
H Ho oa ar rd di in ng g a an nd d b ba an nn ne er rs s

56

S St ta al ll ls s i in n t tr ra ad de e f fa ai ir rs s
D Di is st tr ri ib bu ut ti io on n o of f l le ea af fl le et ts s c co on nt ta ai in ni in ng g d de et ta ai il le ed d i in nf fo or rm ma at ti io on n
E Em mp pl lo oy ye ee es s i in n P PS SU Us s a ar re e a al lw wa ay ys s c co on ns si id de er re ed d t to o b be e a a l li it tt tl le e c ca al lm m i in n t th he ei ir r w wo or rk ki in ng g a as s
c co om mp pa ar re ed d t to o p pr ri iv va at te e b ba an nk ks s. . A A g go oo od d w wa ay y t to o m mo ot ti iv va at te e t th he em m w wo ou ul ld d b be e t to o g gi iv ve e t th he em m
e en no ou ug gh h i in nc ce en nt ti iv ve es s s so o a as s t to o i in nc cr re ea as se e s sa al le es s a an nd d g gi iv ve e t th he em m r re ec co og gn ni it ti io on n f fo or r t th he e s sa am me e. .
S Se ec cu ur ri it ty y o of f n ne et t b ba an nk ki in ng g i is s o on ne e o of f t th he e g gr re ea at te es st t c co on nc ce er rn ns s w wh hy y P PN NB B N Ne et t B Ba an nk ki in ng g i is s n no ot t v ve er ry y
p po op pu ul la ar r. . I In n o or rd de er r t to o b bu ui il ld d m mo or re e t tr ru us st t i in n t th he e m mi in nd ds s o of f t th he e c cu us st to om me er rs s, , I I w wo ou ul ld d s su ug gg ge es st t P PN NB B
N Ne et t B Ba an nk ki in ng g s sh ho ou ul ld d b be e m mo or re e s se ec cu ur re ed d a an nd d t tr ru us st t w wo or rt th hy y. . O On ne e i im mp po or rt ta an nt t s st tr ra at te eg gy y w wo ou ul ld d
b be e t to o l le ev ve er ra ag ge e t th he e p pr ri iv va ac cy y o of f m mo ob bi il le e p ph ho on ne es s a an nd d a as ss so oc ci ia at te ed d i it t w wi it th h i in nt te er rn ne et t b ba an nk ki in ng g. .
C Cu us st to om me er rs s w wh ho o t tr ra an ns sa ac ct t v vi ia a P PN NB B N Ne et t B Ba an nk ki in ng g w wi il ll l r re ec ce ei iv ve e a a p pa as ss sw wo or rd d o on n t th he ei ir r m mo ob bi il le e
p ph ho on ne e t th hr ro ou ug gh h S SM MS S f fa ac ci il li it ty y. . T Th hi is s p pa as ss sw wo or rd d w wi il ll l h ha av ve e t to o b be e e en nt te er re ed d i in n t th he e N Ne et t B Ba an nk ki in ng g
s sy ys st te em m w wi it th hi in n 2 2 m mi in nu ut te es s o of f r re ec ce ei iv vi in ng g. . I If f a a c cu us st to om me er r f fa ai il ls s t to o e en nt te er r t th he e p pa as ss sw wo or rd d w wi it th hi in n
t th he e t ti im me e l li im mi it t, , t th he e t tr ra an ns sa ac ct ti io on n w wi il ll l f fa ai il l t to o b be e s su uc cc ce es ss sf fu ul l a an nd d t th he e c cu us st to om me er r w wo ou ul ld d b be e o ou ut t o of f
t th he e s sy ys st te em m b be ec ca au us se e t th he e f fa ai il l o of f t tr ra an ns sa ac ct ti io on n w wo ou ul ld d i in nd di ic ca at te e t th ha at t t th he e c cu us st to om me er r i is s n no ot t
a au ut th he en nt ti ic c. .
T Th hu us s, , i in n o or rd de er r t to o t tr ra an ns sa ac ct t v vi ia a P PN NB B N Ne et t B Ba an nk ki in ng g c cu us st to om me er r w wi il ll l h ha av ve e t to o g go o t th hr ro ou ug gh h a a h hi ig gh hl ly y
s so op ph hi is st ti ic ca at te ed d t te ec ch hs sa av vy y s se ec cu ur re ed d p pr ro oc ce ed du ur re e o of f t tw wo o- -p pa as ss sw wo or rd d s sy ys st te em m. . O On ne e p pa as ss sw wo or rd d w wi il ll l
b be e a a p pe er rm ma an ne en nt t o on ne e w wh hi ic ch h w wi il ll l s se er rv ve e a as s t th he e c cu us st to om me er r i id de en nt ti it ty y a an nd d t th he e o ot th he er r p pa as ss sw wo or rd d
w wi il ll l c ch ha an ng ge e f fo or r e ev ve er ry y t tr ra an ns sa ac ct ti io on n w wh hi ic ch h w wi il ll l e en ns su ur re e t th ha at t P PN NB B N Ne et t B Ba an nk ki in ng g i is s s se ec cu ur re ed d
f fr ro om m s sc ca am ms s l li ik ke e p ph hi is sh hi in ng g. .
T Th hi is s t ty yp pe e o of f h hi ig gh h t te ec ch h s se ec cu ur ri it ty y w wo ou ul ld d m ma ak ke e P PN NB B N Ne et t B Ba an nk ki in ng g f fr re ee e f fr ro om m p ph hi is sh hi in ng g w wh hi ic ch h i is s
n no ow w a a d da ay ys s t th he e m mo os st t c co on nc ce er rn ne ed d a ar re ea a i in n i in nt te er rn ne et t b ba an nk ki in ng g. .
T Th he e s se er rv ve er rs s l li in nk ke ed d t to o i in nt te er rn ne et t b ba an nk ki in ng g s sh ho ou ul ld d b be e m ma ai in nt ta ai in ne ed d p pr ro op pe er rl ly y a an nd d s sh ho ou ul ld d b be e
c ch he ec ck ke ed d f fr ro om m t ti im me e t to o t ti im me e. . C Co on nv ve en ni ie en nc ce e o of f t th he e c cu us st to om me er rs s s sh ho ou ul ld d a al lw wa ay ys s b be e t th he e p pr ri io or ri it ty y. .
P PN NB B w wi il ll l h ha av ve e t to o d de ev ve el lo op p a a s st tr ro on ng g b br ra an nd d i im ma ag ge e e es sp pe ec ci ia al ll ly y i in n t th he e m mi in nd ds s o of f y yo ou un ng g
p pr ro of fe es ss si io on na al ls s w wh ho o p pr re ef fe er r p pr ri iv va at te e b ba an nk ks s b by y s st tr re es ss si in ng g o on n t th he e k ke ey y f fe ea at tu ur re es s l li ik ke e
t tr ra an ns sp pa ar re en nc cy y a an nd d r re el li ia ab bi il li it ty y. .

57

1 12 2. .5 5 A An na al ly ys si is s a an nd d R Re eb br ra an nd di in ng g o of f P PN NB B M Mo ob bi il le e B Ba an nk ki in ng g: :

M Mo ob bi il le e b ba an nk ki in ng g i in n P PN NB B i is s a a p pr ro od du uc ct t w wh hi ic ch h w wa as s r re ec ce en nt tl ly y i in nt tr ro od du uc ce ed d o on n 1 12 2
t th h
F Fe eb b, , 2 20 01 10 0. . B Be ei in ng g a a
n ne ew wl ly y l la au un nc ch he ed d p pr ro od du uc ct t i it t h ha as s c co ov ve er re ed d a a l lo ot t o of f p po oi in nt ts s w wh hi ic ch h a ar re e v ve er ry y b be en ne ef fi ic ci ia al l t to o t th he e
c co or rp po or ra at te es s o or r i in nd di iv vi id du ua al ls s o of f s se er rv vi ic ce e c cl la as ss s. .
P PN NB B M Mo ob bi il le e B Ba an nk ki in ng g w wo ou ul ld d e en na ab bl le e P PN NB B c cu us st to om me er rs s i in n a ac cc ce es ss si in ng g b ba an nk ki in ng g s se er rv vi ic ce es s
a an ny yt ti im me e/ /a an ny yw wh he er re e o on n- -t th he e- -m mo ov ve e t th hr ro ou ug gh h m mo ob bi il le e p ph ho on ne es s. . I It t i is s c co om mp pa at ti ib bl le e w wi it th h p po op pu ul la ar r m mo ob bi il le e
d de ev vi ic ce es s a ac cr ro os ss s m mo os st t G GS SM M & & C CD DM MA A o op pe er ra at to or rs s w wi it th h e ea as sy y t to o o op pe er ra at te e f fe ea at tu ur re es s. .
T Th he e M Mo ob bi il le e B Ba an nk ki in ng g S Se er rv vi ic ce es s a ar re e b be ei in ng g o of ff fe er re ed d i in n l li in ne e w wi it th h t th he e g gu ui id de el li in ne es s o of f t th he e R Re es se er rv ve e B Ba an nk k o of f
I In nd di ia a. . P PN NB B M Mo ob bi il le e B Ba an nk ki in ng g o of ff fe er rs s s se er rv vi ic ce es s l li ik ke e c ch he ec ck ki in ng g a ac cc co ou un nt t b ba al la an nc ce es s, , t tr ra an ns sf fe er r o of f f fu un nd ds s, ,
s st to op p- -p pa ay ym me en nt t o of f c ch he eq qu ue es s, , r re eq qu ue es st t f fo or r a a c ch he eq qu ue e b bo oo ok k a an nd d m ma an ny y m mo or re e a ad dd d- -o on ns s f fe ea at tu ur re es s. .
C Co om mp pa ar ri in ng g t th he e m mo ob bi il le e b ba an nk ki in ng g s se er rv vi ic ce es s o of f P PN NB B w wi it th h o ot th he er r b ba an nk ks s. . I It t h ha as s a al ll l t th he e b ba as si ic c a am me en ni it ti ie es s
o of f m mo ob bi il le e b ba an nk ki in ng g b bu ut t s si in nc ce e i it t i is s a at t i it ts s i in nf fa an nt t s st ta ag ge e, , i it t r re eq qu ui ir re es s a a l lo ot t o of f i im mp pr ro ov ve em me en nt ts s. .

W Wh he en n t th he e s se er rv vi ic ce es s a ar re e b be ei in ng g c co om mp pa ar re ed d t to o t th he e b ba an nk ks s, , w we e h ha av ve e c co om mp pa ar re ed d i it t o on n t th he e b ba as si is s o of f t th hr re ee e
p pa ar ra am me et te er rs s
1 1. . S Se er rv vi ic ce es s p pr ro ov vi id de ed d f fo or r b ba an nk k a ac cc co ou un nt ts s
2 2. . S Se er rv vi ic ce es s p pr ro ov vi id de ed d f fo or r c cr re ed di it t c ca ar rd ds s
3 3. . O Ot th he er r s se er rv vi ic ce es s
O On n c co om mp pa ar ri in ng g t th he e b ba an nk ks s w we e g ge et t t to o k kn no ow w t th ha at t P PN NB B h ha as s a al ll l s so or rt ts s o of f i in nd di iv vi id du ua al l/ / c co or rp po or ra at te e
f fa ac ci il li it ty y o of f k ke ee ep pi in ng g a a t tr ra ac ck k o of f t th he e a ac cc co ou un nt t, , b ba al la an nc ce e e en nq qu ui ir ry y, , c ch he ec cq qu ue e b bo oo ok k e et tc c. . S So om me e o of f
t th he e b ba an nk ks s d do o n no ot t h ha av ve e t th he es se e s se er rv vi ic ce es s, , w wh hi ic ch h i is s g gi iv vi in ng g a an n e ed dg ge e t to o t th he e b ba an nk k. . I It t s sh ho ow ws s t th ha at t
t th he e b ba an nk k i is s v ve er ry y p pa ar rt ti ic cu ul la ar r a ab bo ou ut t i it ts s c co on nu us sm me er rs s g ge et tt ti in ng g t th he e m ma aj jo or r a ac cc co ou un nt ti in ng g f fa ac ci il li it ti ie es s. . I It t
a al ls so o s sh ho ow ws s t th he e p pr ro of fe es ss si io on na al l a at tt ti it tu ud de e o of f t th he e b ba an nk k w wh hi ic ch h i is s v ve er ry y p pa ar rt ti ic cu ul la ar r a ab bo ou ut t i it ts s
c co on ns su um me er rs s w wh hi ic ch h m ma aj jo or rl ly y b be el lo on ng g t to o t th he e m mi id dd dl le e i in nc co om me e g gr ro ou up p s se ec ct ti io on n. .

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T Th he e m ma aj jo or r f fe ea at tu ur re es s t th ha at t a a c co on nu us sm me er r w wo ou ul ld d l li ik ke e t to o k kn nv vo ow w w wh he en n h he e s sw wa ap ps s h hi is s c cr re ed di it t c ca ar rd d
i is s h ho ow w m mu uc ch h h he e h ha as s u us se ed d a an nd d w wh ha at t h he e h ha as s p pa ai id d t to o c co ov ve er r h hi is s d du ue es s a an nd d w wh he en n h he e h ha as s p pa ai id d
t th he e d du ue es s. . H He er re e P PN NB B l la ac ck ks s i in n t th hi is s s se eg gm me en nt t, , b be ei in ng g a an n i in nf fa an nt t i it t h ha as s n no ot t y ye et t c co ov ve er re ed d t th he e
c cr re ed di it t c ca ar rd d a an nd d o ot th he er r s se ec ct ti io on ns s. . W Wh he er re ea as s t th he e o ot th he er r b ba an nk ks s l li ik ke e t th he e p pr ri iv va at te e s se ec ct to or r b ba an nk ks s
H HD DF FC C, , I IC CI IC CI I a an nd d t th he e f fo or re ei ig gn n b ba an nk ks s l li ik ke e S St ta an nd da ar rd d c ch ha ar rt te er re ed d b ba an nk k a an nd d C Ci it ti ib ba an nk k h ha av ve e a al ll l
t th he es se e f fa ac ci il li it ti ie es s t to o c ca at te er r i it ts s t ta ar rg ge et t a au ud di ie en nc ce e. .
C Co om mi in ng g o on n t to o t th he e o ot th he er r s se er rv vi ic ce es s, , P PN NB B l la ac ck ks s i in n t th hi is s s se ec ct ti io on n c co om mp pl le et te el ly y. . T Th he e r re ea as so on n b be ei in ng g
t th he e s sa am me e, , s si in nc ce e i it t i is s n ne ew wl ly y l la au un nc ch he ed d, , i it t w wo ou ul ld d t ta ak ke e s so om me e t ti im me e t to o c co om me e a at t p pa ar r w wi it th h t th he e
o ot th he er r b ba an nk ks s. . A Al ll l t th he es se e f fa ac ci il li it ti ie es s a ar re e m mo or re e f fo or r y yo ou un ng gs st te er rs s o or r t th he e n ne ew w e em mp pl lo oy ye ee es s w wh ho o l li ik ke e
t to o d do o t th hi in ng gs s f fa as st te er r w wh hi ic ch h h he el lp ps s t th he em m t to o s sa av ve e b bo ot th h t ti im me e a an nd d e en ne er rg gy y a an nd d a al ls so o i it t g gi iv ve es s
t th he em m a a l lo ot t o of f f fa ac ci il li it ti ie es s. . T Th hi is s s se ec ct ti io on n t to oo o i is s b be ei in ng g w we el ll l e es st ta ab bl li is sh he ed d b by y o ot th he er r b ba an nk ks s m ma ak ki in ng g
m mo or re e s sp pa ac ce e i in n t th he ei ir r p po oc ck ke et ts s f fo or r t th he e n ne ew w c co on ns su um me er rs s. .
1 12 2. .5 5. .1 1 S St tr ra at te eg gi ie es s f fo or r R Re eb br ra an nd di in ng g o of f P PN NB B M Mo ob bi il le e B Ba an nk ki in ng g: :
P PN NB B m mo ob bi il le e b ba an nk ki in ng g b be ei in ng g a at t i it ts s i in ni it ti ia al l s st ta ag ge es s o of f d de ev ve el lo op pm me en nt t h ha as s t to o b be e b ba ac ck ke ed d u up p w wi it th h
g go oo od d a ad dv ve er rt ti is si in ng g s st tr ra at te eg gy y i in n o or rd de er r t to o a at tt tr ra ac ct t m mo or re e a an nd d m mo or re e c cu us st to om me er rs s. .
T Te ec ch hs sa av vy y, , c co on nv ve en ni ie en nt t a an nd d s se ec cu ur re ed d s sh ho ou ul ld d b be e t th he e a at tt tr ri ib bu ut te es s P PN NB B s sh ho ou ul ld d b ba an nk k u up po on n s so o a as s
t to o i in nc cr re ea as se e i it ts s r re ea ac ch h. .
R Ru ur ra al l m ma ar rk ke et ti in ng g c ca an n b be e a a g go oo od d s st tr ra at te eg gy y a as s m mo ob bi il le e b ba an nk ki in ng g c ca an n b be e q qu ui it te e p po op pu ul la ar r i in n r ru ur ra al l
m ma ar rk ke et ts s w wi it th h t th he e r ra ar re e a av va ai il la ab bi il li it ty y o of f i in nt te er rn ne et t f fa ac ci il li it ti ie es s a an nd d l le es ss s n no o. . o of f b ba an nk k b br ra an nc ch he es s i in n
t th he e m mo os st t r re em mo ot te e a ar re ea as s. .
S Su ug gg ge es st te ed d t ta ag gl li in ne es s f fo or r P PN NB B M Mo ob bi il le e B Ba an nk ki in ng g: :
F Fo or r u ur rb ba an n a ar re ea as s: : ͞ ͞a a v ve er ry y ͚ ͚m mo ob bi il le e͛ ͛ f fu ut tu ur re e o of f b ba an nk ki in ng g͟ ͟
F Fo or r r ru ur ra al l a ar re ea as s: : ͞ ͞a aa ap pk ki i s su uv vi id dh ha a h hu um ma ar ri i z zi im mm me ed da ar ri i͟ ͟
F Fo or r r ru ur ra al l a ar re ea as s: : ͞ ͞a aa ap pk ka a b ba an nk k͙ ͙a ab b a aa ap pk ke e p pa aa as s͙ ͙k ka ab bh hi i b bh hi i, , k ka ah hi i b bh hi i͟ ͟
T Th he e T T. .V V. . a ad dv ve er rt ti is se em me en nt ts s s sh ho ou ul ld d b be e a ai ir re ed d o on n n na at ti io on na al l c ch ha an nn ne el ls s, , e es sp pe ec ci ia al ll ly y d do oo or rd da ar rs sh ha an n. .
A As s P PN NB B a al lr re ea ad dy y h ha as s a a s st tr ro on ng g h ho ol ld d i in n n no or rt th h I In nd di ia a, , i it t s sh ho ou ul ld d l le ev ve er ra ag ge e t th hi is s o op pp po or rt tu un ni it ty y t to o d do o
t te es st t m ma ar rk ke et ti in ng g o of f i it ts s m mo ob bi il le e b ba an nk ki in ng g w wi it th h a a s st tr ro on ng g b br ra an nd d i id de en nt ti it ty y. . T Th hi is s w wi il ll l s st tr re en ng gt th he en n i it ts s
h ho ol ld d i in n m mo ob bi il le e b ba an nk ki in ng g e er ra a. .

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1 12 2. .6 6 A An na al ly ys si is s a an nd d R Re eb br ra an nd di in ng g o of f P PN NB B A AT TM Ms s: :
P Pu un nj ja ab b N Na at ti io on na al l B Ba an nk k A AT TM Ms s a ar re e o on ne e o of f t th he e A AT TM Ms s w wh hi ic ch h a ar re e u us se ed d b by y a a l la ar rg ge e n nu um mb be er r o of f p pe eo op pl le e
b be ec ca au us se e t th he e A AT TM Ms s a ar re e l lo oc ca at te ed d i in n a al ll l t th he e m ma aj jo or r c ci it ti ie es s o of f I In nd di ia a. . T Th he e P Pu un nj ja ab b N Na at ti io on na al l B Ba an nk k A AT TM Ms s
a ar re e l lo oc ca at te ed d i in n D De el lh hi i, , K Ko ol lk ka at ta a, , C Ch he en nn na ai i, , M Mu um mb ba ai i, , B Ba an ng ga al lo or re e, , H Hy yd de er ra ab ba ad d, , P Pu un ne e, , G Gu ur rg ga ao on n, , U Ut tt ta ar r
P Pr ra ad de es sh h a as s w we el ll l a as s G Gh ha az zi ia ab ba ad d. . T Th he e P Pu un nj ja ab b N Na at ti io on na al l B Ba an nk k A AT TM Ms s a ar re e o on ne e o of f t th he e w we el ll l e eq qu ui ip pp pe ed d
A AT TM Ms s t th he er re eb by y i it t h ha as s b be ec co om me e e ex xt tr re em me el ly y e ea as si ie er r f fo or r t th he e p pe eo op pl le e t to o w wi it th hd dr ra aw w c ca as sh h. . I It t i is s a al ls so o e ea as si ie er r
t to o o op pe er ra at te e t th he e P Pu un nj ja ab b N Na at ti io on na al l B Ba an nk k A AT TM Ms s a as s w we el ll l. .
T Th he e P Pu un nj ja ab b N Na at ti io on na al l B Ba an nk k A AT TM Ms s a ar re e k kn no ow wn n f fo or r t th he e l la ar rg ge e n nu um mb be er r o of f f fa ac ci il li it ti ie es s t th ha at t i it t o of ff fe er rs s t to o i it ts s
c cu us st to om me er rs s. . T Th he e P Pu un nj ja ab b N Na at ti io on na al l B Ba an nk k A AT TM Ms s a ar re e o op pe en ne ed d a al ll l t th he e y ye ea ar r r ro ou un nd d o on n a a 2 24 4X X7 7 b ba as si is s. . T Th he e
A AT TM Ms s a ar re e n no ot t c cl lo os se ed d e ev ve en n o on n t th he e h ho ol li id da ay ys s. . T Th hu us s y yo ou u c ca an n a ac cc ce es ss s y yo ou ur r a ac cc co ou un nt t a as s a an nd d w wh he en n y yo ou u
r re eq qu ui ir re e i it t. . C Ca as sh h w wi it th hd dr ra aw wa al ls s h ha av ve e b be ee en n t th hu us s m ma ad de e e ex xt tr re em me el ly y e ea as si ie er r b be ec ca au us se e o of f t th hi is s. . T Th he e P Pu un nj ja ab b
N Na at ti io on na al l B Ba an nk k A AT TM Ms s a ar re e l lo oc ca at te ed d a at t a al ll l t th he e i im mp po or rt ta an nt t p pa ar rt ts s o of f t th he e c ci it ti ie es s s su uc ch h a as s n ne ea ar r t th he e h ho os sp pi it ta al l, ,
m ma ar rk ke et t p pl la ac ce es s, , m ma aj jo or r o of ff fi ic ce es s a an nd d o ot th he er rs s. . T Th hu us s, , y yo ou u w wi il ll l n no ot t h ha av ve e t to o c ca ar rr ry y h ha ar rd d c ca as sh h w wi it th h y yo ou u
w wh he en ne ev ve er r y yo ou u g go o o ou ut t. . T Th hu us s i it t h ha as s e ex xt tr re em me el ly y s sa af fe e a as s w we el ll l. . B Bo ot th h t th he e c cr re ed di it t c ca ar rd ds s a as s w we el ll l a as s t th he e
d de eb bi it t c ca ar rd ds s o of ff fe er re ed d b by y t th he e P Pu un nj ja ab b n na at ti io on na al l b ba an nk k c ca an n b be e u us se ed d i in n a an ny y o of f t th he e P Pu un nj ja ab b N Na at ti io on na al l B Ba an nk k
A AT TM Ms s. . T Th he ey y c ca an n b be e u us se ed d i in n o ot th he er r A AT TM Ms s a as s w we el ll l. . T Th he e b ba an nk ks s h ha av ve e m ma ad de e u up p s su uc ch h t ti ie e u up ps s w wi it th h o ot th he er r
b ba an nk ks s i in n o or rd de er r t to o p pr ro ov vi id de e t th he e b be es st t f fa ac ci il li it ti ie es s t to o t th he e c cu us st to om me er rs s. .
T Th he e P Pu un nj ja ab b N Na at ti io on na al l B Ba an nk k A AT TM Ms s y yo ou u c ca an n a al ls so o d de ep po os si it t t th he e c ch he eq qu ue es s. . T Th he e P Pu un nj ja ab b N Na at ti io on na al l B Ba an nk k
A AT TM Ms s a ar re e o on ne e o of f t th he e b be es st t i in n t te er rm ms s o of f s se ec cu ur ri it ty y. . S So o y yo ou ur r c ch he eq qu ue es s w wi il ll l b be e p pr ro op pe er rl ly y d de ep po os si it te ed d. .
W Wh he en n y yo ou u w wi it th hd dr ra aw w c ca as sh h f fr ro om m t th he e P Pu un nj ja ab b N Na at ti io on na al l B Ba an nk k A AT TM Ms s, , d do o n no ot t f fo or rg ge et t t to o c co ol ll le ec ct t t th he e
c ca ar rd d, , m mo on ne ey y a as s w we el ll l a as s t th he e m mi in ni i s st ta at te em me en nt t t th he ey y o of ff fe er r. . T Th hi is s w wi il ll l h he el lp p y yo ou u k ke ee ep p a a t tr ra ac ck k o of f y yo ou ur r
t tr ra an ns sa ac ct ti io on ns s. . O On nc ce e y yo ou u v vi is si it t t th he e P Pu un nj ja ab b N Na at ti io on na al l B Ba an nk k A AT TM Ms s, , y yo ou u w wi il ll l b be e a ab bl le e t to o k kn no ow w m mo or re e
a ab bo ou ut t t th he e l li im mi it ts s o of f c ca as sh h t th ha at t y yo ou u c ca an n w wi it th hd dr ra aw w f fr ro om m t th he e A AT TM M a at t o on ne e g go o. . T Th hu us s w wi it th hd dr ra aw wi in ng g c ca as sh h
h ha as s b be ec co om me e e ex xt tr re em me el ly y e ea as si ie er r w wi it th h t th he e P Pu un nj ja ab b N Na at ti io on na al l B Ba an nk k A AT TM Ms s. .


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W Wh he en n w we e c co om mp pa ar re e P PN NB B A AT TM Ms s w wi it th h t th he e o ot th he er rs s, , w we e c ca an n s se ee e t th ha at t P PN NB B l li ik ke e m ma an ny y o ot th he er r b ba an nk ks s, ,
g gi iv ve es s a al ll l t th he e f fa ac ci il li it ti ie es s b be e i it t b ba al la an nc ce e e en nq qu ui ir ry y, , c ca as sh h w wi it th hd dr ra aw wa al ls s, , P PI IN N c ch ha an ng ge e, , M Mi in ni i s st ta at te em me en nt t, , o or r
p pa ay ym me en nt t o of f u ut ti il li it ty y b bi il ll ls s. . B Bu ut t i it t d do oe es s n no ot t p pr ro ov vi id de e f fa ac ci il li it ti ie es s l li ik ke e c ch he eq qu ue e d de ep po os si it ts s a an nd d o or rd de er ri in ng g a a
c ch he eq qu ue e b bo oo ok k. . T Th he es se e f fa ac ci il li it ti ie es s a ar re e p pr ro ov vi id de ed d b by y A Ax xi is s B Ba an nk k, , H HD DF FC C B Ba an nk k, , I IC CI IC CI I B Ba an nk k, , S St ta an nd da ar rd d
C Ch ha ar rt te er re ed d, , C Ci it ti i B Ba an nk k. . I It t i is s w wo or rt th h n no ot ti in ng g t th ha at t S SB BI I b be ei in ng g t th he e l la ar rg ge es st t a am mo on ng g a al ll l, , b be e i it t f fo or r n ne et tw wo or rk k
c co ov ve er ra ag ge e o or r f fo or r w wo or rt th hi in ne es ss s, , d do oe es s n no ot t p pr ro ov vi id de e t th he es se e f fa ac ci il li it ti ie es s t th hr ro ou ug gh h i it ts s m mo ob bi il le e b ba an nk ki in ng g. .
W We e c ca an n t th hu us s a an na al ly yz ze e t th ha at t P Pu ub bl li ic c S Se ec ct to or r B Ba an nk ks s a ar re e t th hu us s t to o i im mp pr ro ov ve e a a b bi it t o on n t th he ei ir r m mo ob bi il le e b ba an nk ki in ng g
s se er rv vi ic ce es s i if f t th he ey y w wa an nt t t to o c co om mp pe et te e a at t p pa ar r w wi it th h t th he e P Pr ri iv va at te e S Se ec ct to or r B Ba an nk ks s. .
1 12 2. .6 6. .1 1 S St tr ra at te eg gi ie es s f fo or r R Re eb br ra an nd di in ng g P PN NB B A AT TM Ms s: :
P PN NB B p pr ro ov vi id de es s v ve er ry y b ba as si ic c s se er rv vi ic ce es s o of f A AT TM Ms s a as s c co om mp pa ar re ed d t to o o ot th he er r b ba an nk ks s, , e es sp pe ec ci ia al ll ly y I IC CI IC CI I
B Ba an nk k a an nd d S St ta an nd da ar rd d C Ch ha ar rt te er re ed d B Ba an nk k w wh ho o p pr ro ov vi id de e v va ar ri ie et ty y o of f o ot th he er r s se er rv vi ic ce es s t th hr ro ou ug gh h A AT TM Ms s
l li ik ke e M Mu ut tu ua al l F Fu un nd d p pa ay ym me en nt t, , I In ns su ur ra an nc ce e P Pr re em mi iu um m p pa ay ym me en nt t, , d do on na at ti io on ns s, , i in nt te er rn ne et t p pa ac ck ks s, , f fl le ex xi i
t to op p- -u up ps s, , m mo on ne ey y t tr ra an ns sf fe er r b be et tw we ee en n l li in nk ke ed d a ac cc co ou un nt ts s, , m mo ob bi il le e p ph ho on ne es s r re ec ch ha ar rg ge e, , e et tc c. .
T Th he e B Ba an nk k o of f B Ba ar ro od da a r re ec ce en nt t a ad dv ve er rt ti is se em me en nt ts s o of f A AT TM Ms s a ar re e v ve er ry y e ey ye e- -c ca at tc ch hy y a an nd d e ef ff fe ec ct ti iv ve e. .
T Th he ey y h ha av ve e u us se ed d a an ni im ma at te ed d c ch ha ar ra ac ct te er rs s t to o s sh ho ow w t th ha at t B BO OB B h ha as s A AT TM M s se er rv vi ic ce es s a an ny yw wh he er re e a an nd d
e ev ve er ry yw wh he er re e. .
A Ax xi is s B Ba an nk k h ha as s a al ls so o r re ec ce en nt tl ly y a ad dv ve er rt ti is se ed d a a l lo ot t f fo or r t th he ei ir r A AT TM M s se er rv vi ic ce es s. . T Th he ei ir r a ad dv ve er rt ti is se em me en nt ts s
g gi iv ve e m ma aj jo or r e em mp ph ha as si is s t to o t th he e s sy ym mb bo ol l ͚ ͚A A͛ ͛ o of f A Ax xi is s B Ba an nk k t to o c cr re ea at te e a a d di is st ti in ng gu ui is sh he ed d b br ra an nd d
i id de en nt ti it ty y. .
P PN NB B s sh ho ou ul ld d b be e v ve er ry y a ag gg gr re es ss si iv ve e i in n i it ts s a ad dv ve er rt ti is si in ng g c ca am mp pa ai ig gn ns s f fo or r t th he e A AT TM M s se er rv vi ic ce es s. . T Th he e
a ad dv ve er rt ti is se em me en nt ts s s sh ho ou ul ld d c co on nv ve ey y t th he e m me es ss sa ag ge e o of f P PN NB B t ta ag g l li in ne e: : t th he e n na am me e y yo ou u c ca an n b ba an nk k
u up po on n. . T Th hi is s w wo ou ul ld d e en ns su ur re e b be et tt te er r f fo oo ot tf fa al ll l i in n P PN NB B A AT TM Ms s a as s t th he e t ta ag g l li in ne e i is s a al lr re ea ad dy y v ve er ry y
p po op pu ul la ar r a al ll l o ov ve er r I In nd di ia a. . T Th he e i id de en nt ti it ty y o of f P PN NB B c ca an n b be e a as ss so oc ci ia at te ed d w wi it th h i it ts s t ta ag g l li in ne e w wh hi ic ch h w wi il ll l
b be e a a d dr ri iv vi in ng g f fa ac ct to or r o of f P PN NB B͛ ͛s s a ad dv ve er rt ti is si in ng g c ca am mp pa ai ig gn n͛ ͛s s s su uc cc ce es ss s. .
O On ne e m mo or re e s st tr ra at te eg gy y t to o b be e s su ug gg ge es st te ed d i is s s se et tt ti in ng g u up p o of f a a c co om mp pu ut te er r i in n e ea ac ch h o of f t th he e A AT TM Ms s. . T Th he e
c co om mp pu ut te er r s sh ho ou ul ld d g gi iv ve e t th he e c cu us st to om me er rs s a ac cc ce es ss s t to o P PN NB B w we eb bs si it te e a an nd d P PN NB B i in nt te er rn ne et t b ba an nk ki in ng g
f fa ac ci il li it ty y. . T Th hi is s t ty yp pe e o of f s st tr ra at te eg gy y i is s c ca al ll le ed d c co o- -b br ra an nd di in ng g w wh he er re e i in n P PN NB B w wi il ll l b be e a ab bl le e t to o
d di is st ti in ng gu ui is sh h i it ts se el lf f f fr ro om m t th he e c co om mp pe et ti it to or rs s b by y p pr ro ov vi id di in ng g i in nt te er rn ne et t b ba an nk ki in ng g a as s w we el ll l a as s A AT TM M

61

f fa ac ci il li it ty y a al ll l a at t o on ne e p pl la ac ce e. . T Th he e a ad dv ve er rt ti is se em me en nt ts s o of f P PN NB B s sh ho ou ul ld d a al ls so o c co on nv ve ey y t th hi is s d du ua al l f fa ac ci il li it ty y
m me es ss sa ag ge e. .
P PN NB B A AT TM Ms s s sh ho ou ul ld d h ha av ve e a a d di is st ti in ng gu ui is sh he ed d t ta ag gl li in ne e w wh hi ic ch h c ca an n b be e u us se ed d t to o c cr re ea at te e a a d di if ff fe er re en nt t
b br ra an nd d i id de en nt ti it ty y. .
S Su ug gg ge es st te ed d t ta ag gl li in ne es s f fo or r P PN NB B A AT TM Ms s: :
͚ ͚a ab b a aa ap pk ke e p pa ai is se e a aa ap pk ke e h ha aa at th h m me ei in n͙ ͙k ka ab bh hi i b bh hi i, , k ka ah hi i b bh hi i͛ ͛
͚ ͚H Hu um m h ha am me es sh ha a s sa aa at th h n ni ib bh ha ay ye en ng ge e͛ ͛
͚ ͚a aa ap pk ka a d do os st t a aa ap pk ke e s sa aa at th h͙ ͙h ha ar r p pa al l, ,h ha ar r j ja ag ga a͛ ͛
S Su ug gg ge es st te ed d t ta ag gl li in ne es s f fo or r P PN NB B A AT TM Ms s a an nd d I In nt te er rn ne et t B Ba an nk ki in ng g ( (d du ua al l f fa ac ci il li it ty y) ): :
͚ ͚a aa ap pk ki i s su uv vi id dh ha a k ke e l li iy ye e h hu um m h ha ai i n na a͛ ͛
͚ ͚h ha am me es sh ha a a aa ap pk ka a s sa aa at th h n ni ib bh ha ay ye en ng ge e͛ ͛
͚ ͚s si ir rf f A AT TM M h hi i n na ah hi i͙ ͙p pu ur ra a b ba an nk k a ab b a aa ap pk ki i m mu ut th hi i m me ei in n͛ ͛


1 12 2. .7 7 A An na al ly ys si is s a an nd d R Re eb br ra an nd di in ng g o of f P PN NB B C Cr re ed di it t C Ca ar rd ds s: :
C Cr re ed di it t c ca ar rd ds s h ha av ve e b be ee en n i in n I In nd di ia a f fo or r w we el ll l o ov ve er r t tw wo o a an nd d h ha al lf f d de ec ca ad de es s. . O Ov ve er r t th he e l la as st t f fi iv ve e y ye ea ar rs s
t th ho ou ug gh h, , t th he ey y h ha av ve e l li it te er ra al ll ly y t ta ak ke en n o ov ve er r t th he e m ma ar rk ke et t a an nd d t th he en n c ca am me e d do ow wn n d du ue e t to o i in nc cr re ea as se e i in n
n nu um mb be er r o of f d de eb bi it t c ca ar rd d u us sa ag ge e. . T Th he e t tr ra an ns sa ac ct ti io on ns s t th hr ro ou ug gh h d de eb bi it t c ca ar rd ds s j ju um mp pe ed d b by y 4 42 2 p pe er r c ce en nt t a at t R Rs s
2 26 6, ,4 41 18 8 C Cr r i in n t th he e l la as st t f fi is sc ca al l f fr ro om m R Rs s 1 18 8, ,5 54 47 7 C Cr r i in n 2 20 00 08 8- -0 09 9, , i it t s sl li ip pp pe ed d b by y 4 4 p pe er r c ce en nt t f fo or r c cr re ed di it t c ca ar rd ds s
t to o R Rs s 6 62 2, ,8 85 52 2 C Cr r f fr ro om m R Rs s 6 65 5, ,3 35 56 6 C Cr r. . T Th he e t to ot ta al l n nu um mb be er r o of f c cr re ed di it t c ca ar rd ds s w we en nt t d do ow wn n t to o 2 23 3. .4 4 C Cr r i in n
2 20 00 09 9- -1 10 0 f fr ro om m 2 25 5. .9 9 C Cr r i in n 2 20 00 08 8- -0 09 9. .
D Do ow wn nt tu ur rn n i in n t th he e e ec co on no om my y w wa as s t th he e m ma aj jo or r r re ea as so on n f fo or r n ne eg ga at ti iv ve e t tr re en nd d i in n c cr re ed di it t c ca ar rd ds s. . ͞ ͞D Du ur ri in ng g t th he e
s sl lo ow wd do ow wn n, , b ba an nk ks s b be ec ca am me e c ca au ut ti io ou us s i in n i is ss su ui in ng g n ne ew w c cr re ed di it t c ca ar rd ds s t to o c ch he ec ck k d de ef fa au ul lt ts s. . A Al ls so o, , l la as st t y ye ea ar r
m ma an ny y l lo os st t t th he ei ir r j jo ob bs s w wh hi ic ch h l le ed d t to o t th he e d de ec cl li in ne e i in n s sp pe en nd di in ng g t th hr ro ou ug gh h c cr re ed di it t c ca ar rd ds s



62

T To ot ta al l c cr re ed di it t c ca ar rd ds s s so ol ld d i in n t th he e m ma ar rk ke et t: :


I IC CI IC CI I i is s t th he e c cl le ea ar r m ma ar rk ke et t l le ea ad de er r i in n t th hi is s s se eg gm me en nt t w wi it th h a al lm mo os st t 2 29 9% % o of f t th he e c cr re ed di it t c ca ar rd ds s s so ol ld d. .
W Wh he er re ea as s P PN NB B i is s m me er re el ly y 1 1% % o of f t th he e w wh ho ol le e c cr re ed di it t c ca ar rd d s se eg gm me en nt ts s w wh hi ic ch h p po oi in nt ts s o ou ut t t to ow wa ar rd ds s
n ne ec ce es ss si it ti ie es s f fo or r i im mp pr ro ov ve em me en nt t a an nd d c co om mi in ng g u up p w wi it th h m mo or re e n ne ew w c ca ar rd ds s a an nd d t ty yp pe es s s so o t th ha at t i it t a at tt tr ra ac ct ts s
m mo or re e c co on ns su um me er rs s. .
1 12 2. .7 7. .1 1 S St tr ra at te eg gi ie es s f fo or r R Re eb br ra an nd di in ng g o of f P PN NB B C Cr re ed di it t C Ca ar rd ds s: :
P PN NB B c cr re ed di it t C Ca ar rd ds s s sh ho ou ul ld d b be e t ta ar rg ge et tt te ed d t to o t th he e e el li it te e g gr ro ou up p o of f p pe eo op pl le e w wh ho o a ar re e f fl la am mb bo oy ya an nt t i in n
t th he ei ir r s sp pe en nd di in ng gs s. .
I In n t to od da ay ys s t ti im me es s, , P PN NB B h ha as s a a h hu ug ge e c cu us st to om me er r b ba as se e o of f l lo ow we er r m mi id dd dl le e c cl la as ss s a an nd d m mi id dd dl le e c cl la as ss s
p pe eo op pl le e. . T Th hi is s s se eg gm me en nt t m ma ay y n no ot t p pr re ef fe er r c cr re ed di it t c ca ar rd d u us sa ag ge e. .
P PN NB B w wi il ll l h ha av ve e t to o f fi ir rs st t b bu ui il ld d a a c cu us st to om me er r b ba as se e w wh hi ic ch h i is s s st tr ro on ng g e en no ou ug gh h i in n u up pp pe er r m mi id dd dl le e
c cl la as ss s a an nd d u up pp pe er r c cl la as ss s s se eg gm me en nt t i in n o or rd de er r t to o m ma ak ke e a a m ma ar rk k i in n t th he e c cr re ed di it t c ca ar rd ds s s se eg gm me en nt ts s. .
29%
26%
16%
14%
1%
3%
3%
8%
Credit cards sold
ICICI
HDFC
SBI
Citibank
PNB
Axis bank
BOB
Standard Chartered

63

T Th he e m ma aj jo or r p pl la ay ye er rs s i in n t th he e c cr re ed di it t c ca ar rd ds s s se eg gm me en nt t a ar re e f fo or re ei ig gn n b ba an nk ks s d du ue e t to o t th he e p pe er rc ce ep pt ti io on n
t th ha at t t th he ey y a ar re e m mo or re e c co on nv vi in ni ie en nt t, , o of ff fe er r b be et tt te er r r ra at te es s a an nd d a ar re e a ac cc ce ep pt ta ab bl le e t th hr ro ou ug gh ho ou ut t t th he e
g gl lo ob be e. .
R Re eb br ra an nd di in ng g P PN NB B C Cr re ed di it t C Ca ar rd d w wi il ll l b be e a a c ch ha al ll le en ng ge e t to o t th hi is s p pe er rc ce ep pt ti io on n. .
T Th hi is s w wi il ll l r re eq qu ui ir re e s st tr ro on ng g a ad dv ve er rt ti is si in ng g b ba ac ck ke ed d u up p w wi it th h a a s st tr ro on ng g C CR RM M s sy ys st te em m. . T Th he e f fa ac ci il li it ti ie es s
a an nd d t th he e r ra at te es s t th ha at t P PN NB B C Cr re ed di it t C Ca ar rd ds s o of ff fe er r s sh ho ou ul ld d a al ls so o b be e u up pg gr ra ad de ed d i in n o or rd de er r t to o m me ee et t t th he e
n ne ee ed ds s o of f t th he e t ti im me e. .
S Su ug gg ge es st te ed d s sl lo og ga an ns s f fo or r P PN NB B C Cr re ed di it t C Ca ar rd ds s: :
b be ec ca au us se e y yo ou ur r s sh ho op pp pi in ng g e ex xp pe er ri ie en nc ce e s sh ho ou ul ld d b be e c ca ar re e f fr re ee e͙ ͙
y yo ou ur r c co on nv vi in ni ie en nc ce e i is s o ou ur r p pr ri io or ri it ty y͙ ͙
1 12 2. .8 8 A An na al ly ys si is s a an nd d R Re eb br ra an nd di in ng g o of f P PN NB B D De eb bi it t C Ca ar rd ds s: :
D De eb bi it t c ca ar rd ds s a ar re e t th he e f fa as st te er r g gr ro ow wi in ng g c ca ar rd d- -b ba as se ed d p pa ay ym me en nt t s se eg gm me en nt t i in n I In nd di ia a, , g gi iv ve en n t th he e c cr re ed di it t- -
a av ve er rs se e n na at tu ur re e o of f m ma an ny y c co on ns su um me er rs s. . D De eb bi it t c ca ar rd ds s m ma ad de e t th he ei ir r e en nt tr ry y i in n I In nd di ia a l la at te e 1 19 99 98 8. . D Du ue e t to o t th he e
n na at tu ur re e o of f t th he e p pr ro od du uc ct t ( (b bu uy y n no ow w, , p pa ay y n no ow w) ), , i it t h ha as s e ex xp pe er ri ie en nc ce ed d e ex xp po on ne en nt ti ia al l g gr ro ow wt th h. . I In nd di ia an ns s a ar re e
u us si in ng g m mo or re e o of f d de eb bi it t c ca ar rd ds s t th ha an n c cr re ed di it t c ca ar rd ds s f fo or r t th he ei ir r b ba an nk ki in ng g t tr ra an ns sa ac ct ti io on ns s, , s sa ay ys s t th he e R Re es se er rv ve e B Ba an nk k o of f I In nd di ia a
( (R RB BI I) ) d da at ta a f fo or r t th he e y ye ea ar r e en nd de ed d 2 20 00 09 9- -1 10 0. . W Wh hi il le e t th he e t tr ra an ns sa ac ct ti io on ns s t th hr ro ou ug gh h d de eb bi it t c ca ar rd ds s j ju um mp pe ed d b by y 4 42 2 p pe er r
c ce en nt t a at t R Rs s 2 26 6, ,4 41 18 8 C Cr r i in n t th he e l la as st t f fi is sc ca al l f fr ro om m R Rs s 1 18 8, ,5 54 47 7 C Cr r i in n 2 20 00 08 8- -0 09 9, , i it t s sl li ip pp pe ed d b by y 4 4 p pe er r c ce en nt t f fo or r c cr re ed di it t
c ca ar rd ds s t to o R Rs s 6 62 2, ,8 85 52 2 C Cr r f fr ro om m R Rs s 6 65 5, ,3 35 56 6 C Cr r. . I In n t th he e s sa am me e p pe er ri io od d, , t th he e n nu um mb be er r o of f d de eb bi it t c ca ar rd ds s i in n
c ci ir rc cu ul la at ti io on n h ha as s a al ls so o i in nc cr re ea as se ed d b by y 3 33 3 p pe er r c ce en nt t a as s c co om mp pa ar re ed d t to o a a f fa al ll l i in n c cr re ed di it t c ca ar rd d c ci ir rc cu ul la at ti io on n b by y
1 10 0 p pe er r c ce en nt t o ov ve er r t th he e p pr re ev vi io ou us s y ye ea ar r. . T Th he e t to ot ta al l n nu um mb be er r o of f d de eb bi it t c ca ar rd ds s i in nc cr re ea as se ed d t to o 1 17 7 C Cr r i in n 2 20 00 09 9- -
1 10 0 f fr ro om m 1 12 2. .8 8 C Cr r i in n 2 20 00 08 8- -0 09 9. .
I In n A Ap pr ri il l t th hi is s y ye ea ar r, , d de eb bi it t c ca ar rd d p pa ay ym me en nt ts s i in nc cr re ea as se ed d t to o R Rs s 2 2, ,5 50 08 8 c cr ro or re e f fr ro om m R Rs s 1 1, ,7 77 78 8 c cr ro or re e i in n t th he e
c co or rr re es sp po on nd di in ng g m mo on nt th h l la as st t y ye ea ar r, , a ac cc co or rd di in ng g t to o t th he e c ce en nt tr ra al l b ba an nk k' 's s m mo on nt th hl ly y b bu ul ll le et ti in n. . T Tr ra an ns sa ac ct ti io on ns s
m ma ad de e t th hr ro ou ug gh h t th he es se e c ca ar rd ds s i in n t th he e c co ou un nt tr ry y r ro os se e t to o R Rs s 5 5, ,4 47 73 3 c cr ro or re e f fr ro om m R Rs s 4 4, ,9 93 32 2 c cr ro or re e i in n t th he e
c co or rr re es sp po on nd di in ng g m mo on nt th h o of f t th he e p pr re ev vi io ou us s f fi is sc ca al l. .

64

16%
12%
37%
10%
6%
10%
3%
6%
Debit cards sold
ICICI
HDFC
SBI
Citibank
PNB
Axis bank
BOB
Standard Chartered
T To ot ta al l N No o o of f D De eb bi it t C Ca ar rd ds s s so ol ld d i in n t th he e m ma ar rk ke et t: :









S SB BI I i is s t th he e c cl le ea ar r m ma ar rk ke et t l le ea ad de er r i in n t th hi is s s se eg gm me en nt t w wi it th h a al lm mo os st t 3 37 7% % o of f t th he e d de eb bi it t c ca ar rd ds s s so ol ld d. . W Wh he er re ea as s
P PN NB B i is s 6 6% % o of f t th he e w wh ho ol le e d de eb bi it t c ca ar rd d s se eg gm me en nt ts s w wh hi ic ch h i is s b be et tt te er r t th ha an n t th he e c cr re ed di it t c ca ar rd ds s b bu ut t s st ti il ll l h ha as s a a
l lo on ng g w wa ay y t to o g go o i in no or rd de er r t to o g ga ai in n s so om me e s su ub bs st ta an nc ci ia al l b ba as se e i in n t th he e m ma ar rk ke et t. .
1 12 2. .8 8. .1 1 S St tr ra at te eg gi ie es s f fo or r R Re eb br ra an nd di in ng g P PN NB B D De eb bi it t C Ca ar rd ds s: :
P PN NB B i is ss su ue es s t th hr re ee e t ty yp pe es s o of f d de eb bi it t c ca ar rd ds s: :
C Cl la as ss si ic c D De eb bi it t C Ca ar rd d
G Go ol ld d D De eb bi it t C Ca ar rd d
F Fr re ee e i is ss su ue e o of f P PN NB B G Go ol ld d d de eb bi it t c ca ar rd ds s t to o p pr re em mi iu um m c cu us st to om me er rs s w wh ho o h ha av ve e b be ee en n a as ss so oc ci ia at te ed d
w wi it th h P PN NB B f fo or r m mo or re e t th ha an n 6 6 y ye ea ar rs s c ca an n b be e a an n h ho on no or r f fo or r t th he e c cu us st to om me er rs s. . T Th he es se e c cu us st to om me er rs s a ar re e
a an ny y w wa ay ys s v ve er ry y h ha ap pp py y o of f b be ei in ng g a as ss so oc ci ia at te ed d w wi it th h P PN NB B. . I If f w we e g gi iv ve e t th he em m s su uc ch h a ad dd d- -o on n
p pr ri iv vi il le eg ge es s, , t th he e b br ra an nd d l lo oy ya al lt ty y o of f t th he e b ba an nk k w wi il ll l i in nc cr re ea as se e. . T Th he e a ad dv ve er rt ti is si in ng g t th ha at t P PN NB B w wi il ll l g ge et t
b by y w wa ay y o of f w wo or rd d- -o of f- -m mo ou ut th h p pu ub bl li ic ci it ty y w wi il ll l b be e a ad dd di it ti io on na al l a ad dv va an nt ta ag ge e f fo or r P PN NB B. .
T Th he e w we eb bs si it te e o of f P PN NB B w wh he en n a ad dv ve er rt ti is se es s a ab bo ou ut t i it ts s D De eb bi it t C Ca ar rd ds s s sh ho ou ul ld d h ha av ve e a a p pi ic ct tu ur re e o of f t th he e
a ac ct tu ua al l d de eb bi it t c ca ar rd ds s i it t i is ss su ue es s. . T Th hi is s w wi il ll l h he el lp p t th he em m i in n b br ra an nd d r re ec ca al ll l. .

65

D De eb bi it t C Ca ar rd ds s a ar re e m mo os st t o of ft te en n u us se ed d i in n s sh ho op pp pi in ng g m ma al ll ls s a an nd d m mo ov vi ie e t th he ea at tr re es s o or r o on nl li in ne e b bo oo ok ki in ng g
o of f t ti ic ck ke et ts s. . I In n o or rd de er r t to o i in nc cr re ea as se e i it ts s p pr re es se en nc ce e i in n t th he e a ad dv ve er rt ti is se em me en nt ts s, , t th he e b be es st t p pl la ac ce es s t to o
a ad dv ve er rt ti is se e w wi il ll l b be e: :
S Sh ho op pp pi in ng g m ma al ll ls s a an nd d h hy yp pe er rm ma ar rk ke et ts s
T Th hi is s s sh ho ou ul ld d b be e t ta ar rg ge et te ed d t to o w wo om me en n. . A A s sp pe ec ci ia al l t ty yp pe e o of f d de eb bi it t c ca ar rd ds s s sh ho ou ul ld d
b be e i is ss su ue ed d w wh hi ic ch h c ca an n t ta ak ke e c ca ar re e o of f t th he e n ne ee ed ds s o of f a a t ty yp pi ic ca al l w wo om ma an n, , e es sp pe ec ci ia al ll ly y
a a h ho ou us se e- -w wi if fe e. .
I In nt te er rn ne et t
T Th hi is s s sh ho ou ul ld d b be e t ta ar rg ge et te ed d t to o y yo ou un ng g p pr ro of fe es ss si io on na al ls s w wh ho o a ar re e s so o b bu us sy y i in n t th he ei ir r
r ro ou ut ti in ne e t th ha at t t th he ey y p pr re ef fe er r o on nl li in ne e s sh ho op pp pi in ng g r ra at th he er r t th ha an n p ph hy ys si ic ca al ll ly y g go oi in ng g i in n
t th he e s sh ho op ps s t to o b bu uy y p pr ro od du uc ct ts s. .
S Su ug gg ge es st te ed d s sl lo og ga an ns s f fo or r P PN NB B D De eb bi it t C Ca ar rd ds s: :
C Cl la as ss si ic c C Ca ar rd d. . T Th he ey y k ke ey y t to o e ev ve er ry yt th hi in ng g! !! !! !
W Wh he er re ev ve er r y yo ou u g go o͙ ͙w we e a ac cc co om mp pa an ny y y yo ou u! !! !! !
H Ha ar r k ki is si i k ko o G Go ol ld d C Ca ar rd d n na ah hi i m mi il lt ta a͙ ͙a aa ap p k kh ha aa as s h ha ai i
F Fo or r D De eb bi it t C Ca ar rd ds s t ta ar rg ge et te ed d a at t w wo om me en n
K Ku uc ch h k kh ha ar ri id dn ne e k ke e l li iy ye e p pa ai is so o k ki i k ky ya a z za ar ru ur ra at t͙ ͙
N Na ay ya a z za am ma an na a͙ ͙n na ay yi i s so oc ch h͙ ͙









66

1 13 3. . C Co on nc cl lu us si io on n a an nd d R Re ec co om mm me en nd da at ti io on n: :
E Ev ve en n i in n t th hi is s t te ec ch hs sa av vy y w wo or rl ld d, , a a g go oo od d s se eg gm me en nt t o of f c co on ns su um me er rs s s st ti il ll l p pr re ef fe er r t to o b ba an nk k w wi it th h P PS SU Us s. .
T Th hi is s r re es su ul lt t c ca an n b be e v ve er ry y w we el ll l e ex xp pl la ai in ne ed d b by y t th he e f fa ac ct t t th ha at t n na at ti io on na al li iz ze ed d b ba an nk ks s a ar re e a ac cq qu ua ai in nt te ed d
w wi it th h t th he e G Go ov ve er rn nm me en nt t a an nd d t th ha at t u up ps s a an nd d d do ow wn ns s i in n b bu us si in ne es ss s w wi il ll l n no ot t a af ff fe ec ct t t th he e e ex xi is st te en nc ce e o of f
t th he e b ba an nk k. . A Al ls so o t th he e R RB BI I t to oo o h ha as s g go oo od d c co on nt tr ro ol l o ov ve er r t th he e w wo or rk ki in ng g o of f t th he es se e b ba an nk ks s a an nd d t th he er re e
f fo or r t th he e c cu us st to om me er rs s f fe ee el l a a s se en ns se e o of f s se ec cu ur ri it ty y i in n i in nv ve es st ti in ng g i in n t th he es se e b ba an nk ks s. . H Ho ow we ev ve er r i it t i is s a al ls so o
s se ee en n t th ha at t a a g go oo od d p pe er rc ce en nt ta ag ge e o of f p pe eo op pl le e a al ls so o o op pt t f fo or r p pr ri iv va at te e b ba an nk ks s s su uc ch h a as s I IC CI IC CI I, , b be ea ar ri in ng g
i in n m mi in nd d t th he e a am mo ou un nt t o of f e ex xp pe er ri ie en nc ce e t th he ey y p po os ss se es s i in n t th he e f fi ie el ld d o of f b ba an nk ki in ng g. . T Th he es se e p pr ri iv va at te e
b ba an nk ks s, , e ev ve en n t th ho ou ug gh h l li iv vi in ng g w wi it th h n na at ti io on na al li iz ze ed d b ba an nk ks s, , w wh hi ic ch h h ha av ve e t th he e l li io on n͛ ͛s s s sh ha ar re e, , a ap pp pe ea ar r
t to o b be e h hu ug ge e m ma ar rk ke et t p pl la ay ye er rs s a an nd d m ma ar rk ke et t t tu ur rn ne er rs s. .
O On n a a g gl lo ob ba al l s sc ca al le e t te ec ch hn no ol lo og gi ic ca al l i in nn no ov va at ti io on ns s h ha av ve e b be ee en n t th he e m ma ai in n r re ea as so on ns s f fo or r
I In nt te er rn na at ti io on na al l b ba an nk ks s t to o b be ec co om me e m ma ar rk ke et t d dr ri iv ve er rs s a an nd d l le ea ad de er rs s, , b bu ut t t th he e s sa am me e c ca an nn no ot t b be e s sa ai id d
a ab bo ou ut t I In nd di ia a. . H He er re e i im mp pr ro ov ve em me en nt t o of f t te ec ch hn no ol lo og gy y h ha as s n no ot t y ye et t p pl la ay ye ed d o ov ve er r t th he e m mi in nd ds s o of f t th he e
p pe eo op pl le e. . I It t c ca an n b be e s sa ai id d t th ha at t o on nl ly y t th he e h hi ig gh he er r s so oc ci ie et ty y o of f t th he e I In nd di ia an n p po op pu ul la at ti io on n w wo ou ul ld d
c co on ns si id de er r t te ec ch hn no ol lo og gi ic ca al l i in nn no ov va at ti io on ns s t to o b be e v ve er ry y i im mp po or rt ta an nt t i in n t te er rm ms s o of f d de ec ci id di in ng g t th he e
i im mp po or rt ta an nc ce e o of f t th he e b ba an nk k. . T Th he e o ot th he er r p pa ar rt ts s o of f I In nd di ia a w wo ou ul ld d h ha ar rd dl ly y c co on ns si id de er r i it t t to o b be e r re ea as so on n i in n
s se el le ec ct ti in ng g t th he e b ba an nk k. .
K Ke ee ep pi in ng g i in n m mi in nd d t th he e a an na al ly ys si is s i in n t th hi is s p pa ap pe er r w we e c ca an n n no ot te e t th ha at t c co on ns su um me er rs s a ar re e h ha ar rd dl ly y a aw wa ar re e
o of f t th he e P PN NB B N Ne et t B Ba an nk ki in ng g f fa ac ci il li it ti ie es s. .
O On nl ly y r re eb br ra an nd di in ng g a a p pa ar rt ti ic cu ul la ar r p pr ro od du uc ct t w wi il ll l n no ot t h he el lp p. . P PN NB B w wi il ll l h ha av ve e t to o r re eb br ra an nd d i it ts s
c co or rp po or ra at te e i im ma ag ge e i in n t th he e m mi in nd ds s o of f t th he e c cu us st to om me er rs s. .
T Th he e p pi ic ct tu ur re e o of f P PN NB B a as s a a b ba an nk k f fo or r t th he e p po oo or r s sh ho ou ul ld d n no o m mo or re e b be e t th he e b br ra an nd d i id de en nt ti it ty y o of f t th he e
b ba an nk k. .
P PN NB B s sh ho ou ul ld d t ta ar rg ge et t t th he e y yo ou un ng g p pr ro of fe es ss si io on na al ls s f fo or r a al ll l i it ts s b br ra an nd di in ng g r re eq qu ui ir re em me en nt ts s. .
A At t t th he e s sa am me e t ti im me e P PN NB B s sh ho ou ul ld d n no ot t f fo or rg ge et t i it ts s o or ri ig gi in na al l g gr ro ou un nd ds s o on n w wh hi ic ch h i it t h ha as s b be ee en n a ab bl le e t to o
b be ec co om me e t th he e s se ec co on nd d l la ar rg ge es st t n na at ti io on na al li is se ed d b ba an nk k i in n t th he e c co ou un nt tr ry y. .
T Th he e p po oo or r h ha as s a al lw wa ay ys s b be ee en n P PN NB Bs s s st tr ro on ng g c cu us st to om me er r b ba as se e a an nd d i it t s sh ho ou ul ld d l le ev ve er ra ag ge e u up po on n t th hi is s
f fa ac ct to or r t to o i in nc cr re ea as se e i it ts s s st tr re en ng gt th h i in n t th hi is s s se ec ct to or r. .

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T Ti il ll l r re ec ce en nt t t ti im me es s m mo ob bi il le e b ba an nk ki in ng g a an nd d n ne et t b ba an nk ki in ng g w we er re e G Gr re ee ek k a an nd d L La at ti in n t to o m ma an ny y I In nd di ia an ns s. .
S Su uc ch h p pe eo op pl le e w wo ou ul ld d n no ot t k ke ee ep p t te ec ch hn no ol lo og gy y i in n m mi in nd d t to o s se el le ec ct t t th he e b ba an nk k. . B Bu ut t o on n t th he e o ot th he er r
h ha an nd d t th he e p pe eo op pl le e w wh ho o u un nd de er rs st ta an nd d t th he e i im mp po or rt ta an nc ce e o of f t te ec ch hn no ol lo og gy y r re ec co og gn ni iz ze ed d t th he e v va ar ri io ou us s
s se er rv vi ic ce es s t th ha at t a ar re e p pr ro ov vi id de ed d a an nd d a al ls so o m me en nt ti io on ne ed d t th ha at t t te ec ch hn no ol lo og gy y t to od da ay y i in n I In nd di ia a h ha as s m ma ad de e
b ba an nk ki in ng g e ea as si ie er r. . H Ho ow we ev ve er r a a h hu ug ge e s se ec ct ti io on n o of f t th he e p pe eo op pl le e k kn no ow ws s t th he e i im mp po or rt ta an nc ce e o of f a an n A AT TM M
o or r C Cr re ed di it t c ca ar rd ds s, , b bu ut t t th he e s se er rv vi ic ce e p pr ro ov vi is si io on n f fo or r t th he es se e p pr ro od du uc ct ts s w wa as s n no ot t f fo ou un nd d t to o b be e u up p t to o
t th he e m ma ar rk k. .
P PN NB B s sh ho ou ul ld d i im mp pr ro ov ve e i it ts s s se er rv vi ic ce e p pr ro op po os si it ti io on n t to o t th he e c co or re e s so o t th ha at t n no ot t e ev ve en n a a s si in ng gl le e
c cu us st to om me er r w wi il ll l h ha av ve e a an ny y c co om mp pl la ai in nt ts s f fr ro om m t th he e b ba an nk k. .
T To o s su um m u up p w wh ha at t c ca an n b be e s sa ai id d a ab bo ou ut t P PN NB B i is s i it t i is s s st ti il ll l o on n a a g gr ro ow wt th h s st ta ag ge e a as s i it t i is s i in nt tr ro od du uc ci in ng g
n ne ew w c cr re ed di it t a an nd d d de eb bi it t c ca ar rd ds s ( (p pl la at ti in nu um m c ca ar rd ds s) ) a an nd d i in nf fa an nt t s st ta ag ge e f fo or r m mo ob bi il le e b ba an nk ki in ng g
s se er rv vi ic ce es s. . I In n m mo ob bi il le e b ba an nk ki in ng g i it t h ha as s a a l lo on ng g w wa ay y t to o g go o, , w wh he er re ea as s f fo or r i in nt te er rn ne et t b ba an nk ki in ng g, , i it t i is s
d de ev ve el lo op pe ed d b bu ut t n ne ee ed ds s m mo od di if fi ic ca at ti io on n i in n i it ts s s se er rv vi ic ce es s b be ei in ng g o of ff fe er re ed d. .
S Su ug gg ge es st te ed d t ta ag gl li in ne es s f fo or r P PN NB B E E- -B Ba an nk ki in ng g U Um mb br re el ll la a: :
Y Yo ou ur r c co on nv ve en ni ie en nc ce e i is s o ou ur r p pr ri io or ri it ty y
W We e a al ll l c ch ha an ng ge e f fo or r t th he e o on ne es s w we e l lo ov ve e
W We e a ar re e B BA AC CK K a an nd d w wi it th h a a B BA AN NG G! !! !! !













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14. Bibliography:
www.google.co.in
www.rbi.org
www.pnbindia.com
www.theeconomictimes.com
www.banknetindia.com
www.rupeetimes.com
www.crminfoline.com

O Ot th he er r r re ef fe er re en nc ce es s i in nc cl lu ud de e: :
y y C Co om mp pa an ny y p pa am mp ph hl le et ts s
y y I In nt te er ra ac ct ti io on n w wi it th h c co om mp pa an ny y o of ff fi ic ci ia al ls s
y y B Br ra an nc ch h v vi is si it t a at t P PN NB B T Th ha an ne e
y y I In nt te er ra ac ct ti io on ns s w wi it th h c cu us st to om me er rs s
y y D Du um mm my y c cu us st to om me er r v vi is si it t a at t b br ra an nc ch he es s o of f S SB BI I a an nd d I IC CI IC CI I B Ba an nk k

Table of Contents
1. Indian Banking Sector ......................................................................................................................... 7 1.1 Overview........................................................................................................................................ 7 1.2 Structure of the banking industry ................................................................................................... 8 1.3 Banking potential in India ............................................................................................................... 9 1.4 Industry segments .......................................................................................................................... 9 1.5 Distribution of banks .................................................................................................................... 10 1.6 Major key players ......................................................................................................................... 11 1.7 New initiatives by public sector banks .......................................................................................... 12 2. Electronic banking ............................................................................................................................. 12 1.1 Definition ..................................................................................................................................... 12 3. Internet banking................................................................................................................................ 14 3.1 Growth in internet banking........................................................................................................... 15 3.2 The Indian Saga ............................................................................................................................ 18 3.3 The PSU lethargy .......................................................................................................................... 19 3.4 Bouquet Strategy ......................................................................................................................... 20 3.5 Bank s key pain points and opportunities in internet banking ....................................................... 21 4. Mobile banking ................................................................................................................................. 21 5. ATMs ................................................................................................................................................. 22 6. Credit Cards ....................................................................................................................................... 23 7. Debit Cards ........................................................................................................................................ 25 8. Punjab National Bank........................................................................................................................ 27 8.1 Company profile........................................................................................................................... 27 8.2 Vision ........................................................................................................................................... 27 8.3 Mission ........................................................................................................................................ 28 8.4 Overview of the performance as on Mar 10 ................................................................................. 28 8.5 Punjab National Bank s robust technology platform ..................................................................... 29

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8.6 Punjab National Bank increasing its global footprints ................................................................... 30 8.7 Awards and accolades during the year ......................................................................................... 30 8.8 Products and services ................................................................................................................... 31 9. PEST analysis ..................................................................................................................................... 32 10. SWOT analysis ................................................................................................................................. 33 11. TOWS analysis ................................................................................................................................. 34 12. Research Statement ........................................................................................................................ 35 12.1 Research problem....................................................................................................................... 35 12.2 Project objectives ....................................................................................................................... 35 12.3 Research design, methodology and research statement ............................................................. 35 12.3.1 Research plan ................................................................................................................. 35 12.3.1.1 Primary investigation ...................................................................................... 35 12.3.1.2 Exploratory study ............................................................................................ 35 12.3.2 Research design.............................................................................................................. 36 12.4 Analysis and rebranding of PNB internet banking ....................................................................... 36 12.4.1 Findings .......................................................................................................................... 38 12.4.2 Suggested perception towards internet banking advertisements .................................... 38 12.4.3 Developing research plan ............................................................................................... 39 12.4.4 Collection of data ........................................................................................................... 40 12.4.5 Sampling plan 40

12.4.6 Data collection instrument developed ............................................................................ 41 12.4.7 Research limitations ....................................................................................................... 41 12.4.8 Questionnaire................................................................................................................. 42 12.4.9 Analysis and interpretation through EXCEL ..................................................................... 46 12.4.10 Other analytical tools.................................................................................................... 52 12.4.10.1 SWOT analysis ............................................................................................... 52 12.4.10.2 Porter s 5 forces model ................................................................................. 53 12.4.10.3 Ansoff s product-market mix ......................................................................... 54 12.4.11 Strategies for rebranding PNB internet banking ............................................................ 55 12.5 Analysis and rebranding of PNB mobile banking ......................................................................... 57 12.5.1 Strategies for rebranding PNB mobile banking ................................................................ 58

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..........................12............ Conclusion and recommendations ............................................. 60 12...........7 Analysis and rebranding of PNB Credit Cards ......... 63 12.........................8 Analysis and rebranding of PNB Debit Cards ...............1 Strategies for rebranding PNB ATMs .. Bibliography 68 4 ....... 59 12........8.............. 62 12.........................................................................................1 Strategies for rebranding PNB Debit Cards ........1 Strategies for rebranding PNB Credit Cards .......................................................................................... 66 14.6......................... 61 12..7.............6 Analysis and rebranding of PNB ATMs ......................................................................................................... 64 13.................................................................

To create and formulate this project. for giving me any time and every time guidance and continuous support. involving the co-operation of all. His experience and methodology of providing training helped me in not only to perform the desired activity but also to accomplish creativity. 5 . I would like to thank one person who served as my guide epitome of knowledge. Ratan Thakur. Bhagyalakshmi and all the other faculty members who are not only a source of inspiration but also a source of constant innovation.ACKNOWLEDGEMENT Success is the effort bounded actively. I would also like to thank Prof. I would also like to thank my parents and my family who were always there to support me throughout this project. I would like to thank Mr. my MBA project guide.

VAISHALI LAPASIA STUDENT: K.DECLARATION I.Somaiya Institute of Management Studies and Research 6 .J. I further declare that the project work is entirely my original work and no part of this report has been published to or submitted to anybody or university for award of any other diploma or degree. Ms. hereby declare that I have carried out my summer training project in Punjab National Bank. The topic of the project was Re-branding of banking e-products . Vaishali Lapasia.

500 billion in market cap. 7 . the position of banks have become all the more important in the course of working of the money market and hence the economy of a nation. From the different macro economic models. The Banking sector in India has always been one of the most preferred avenues of employment.1. this has emerged as a resurgent sector in the Indian economy. the banking sector index has grown at a compounded annual rate of over 51 per cent since the year 2001. Indian banking sector: 1. It is projected that the sector has the potential to account for over 7. One of the enablers of robust economic growth is a banking sector that is able to adequately and efficiently meet the needs of a growing economy.7.5 million jobs. banks have been found to be a part of the supply side of the economy.GDP growth rates of 7-8 per cent a year will be sustainable going forward if key enabling factors have been put to place. 60% 40% 20% 0% 2001-2010 India World As per the McKinsey report India Banking 2010 . and to provide over 1. have become a significant aspect of an economy. In the current decade. as compared to a 27 per cent growth in the market index during the same period. over the years. However.1 Overview: Banks.7 per cent of GDP with over Rs. The banking sector forming a portion of the financial sector primarily works as a financial intermediary generating money supply. In today s scenario. India is well positioned to become the fourth-largest economy of the world by 2025. over time banks have transformed from merely money generating organizations to a multi tasking entity.

Nearly 70% of the total no. Bulk of commercial bank finance is for short term working capital needs of 8 . private equity. 1.5% respectively. Further. by themselves or through their subsidiaries. pension fund regulation. a rating agency.000 ATMs.Today.2% and 6. life and general insurance. banks have diversified their activities and are getting into new products and services that include opportunities in credit cards. stock broking services.000 branches and 49. setting up offices in foreign countries. mutual funds. of branches of all the commercial banks put together is in rural and semi. with the private and foreign banks holding 18. etc. most of the leading Indian banks are going global.2 Structure of the banking industry: Banking Institutions Regional Rural Banks Foreign Banks Land Development Banks Industrial Development Banks Commercial Banks Indian Commercial Banks Public Sector Banks Private Sector Banks Nationalised banks Punjab National Bank Co-operative Banks State Cooperatives Central/District Cooperatives State Bank Group Banks have a combined network of over 53.urban areas. wealth management. According to a report by ICRA Limited. custodian services. the public sector banks hold over 75 percent of total assets of the banking industry. investment banking. consumer finance.

 Huge middle class population provides India with a distinctive edge in the global competition. Private Banks: Private Banks made banking more efficient and customer friendly in India. India has free and vibrant press which ensures the regulations in the banking industry. 9 .  India has a user friendly intellectual infrastructure which will ensure rapid growth of the industry. Of these 19 are nationalized banks. There are total 26 public sector banks in India (As on 26-09-2009). agriculture and personal segment. market share of various group banks have changed. It led the transformation of banking from class banking to mass banking. Due to vibrant competition. trade.4 Industry segments: Nationalized/ Public sector banks: These banks dominate the Indian banking system.  Lastly.3 Banking potential in India:  India has a huge skilled managerial and technical manpower which can boost the banking industry to great heights. though public sector banks still dominate the entire market.industry. 6(STATE BANK OF INDORE ALSO MERGED RECENTLY) belong to SBI & associates group and 1 bank (IDBI Bank) is classified as other public sector bank. 1.  India has a well established judiciary system and a sophisticated legal and accounting system which can enhance the growth of the banking industry further. Banks are supporting growth in the economy by financing productive sectors. 1.

23 11. They have helped make Indian banking system more efficient and competitive. Various e-banking solutions are what these foreign banks has given to the Indian banking industry.5 Distribution of banks: 100 90 80 70 60 50 40 30 20 10 0 Branches Staff Deposits Advances Net Profits Public sector banks Private sector banks Foreign banks ASCB total banks Public sector banks Private sector banks Branches Staff 88.33 10.26 2.01 ASCB total banks 100 100 10 .Private Banks jolted public sector banks out of complacency and forced them to be more competitive. Foreign banks: Foreign banks have brought latest technology and latest banking practices in India.76 Foreign banks 0. 1.41 87.

Deposits Advances Net Profits 75.25 73.42 20.6 Major Key players: Foreign Banks ABN AMRO Bank Abu Dhabi Commercial Bank Ltd American Express Bank Ltd BNP Paribas Citibank DBS Bank Ltd Deutche Bank HSBC Ltd Standard CharteredBank Private Banks ICICI Bank Bank of Rajasthan Bharat Overseas Bank HDFC Bank IDBI Bank ING Vyasya Bank Kotak Mahindra Bank Axis Bank Yes Bank Public Sector Banks State Bank of India Punjab National Bank Allahbad Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India Dena bank Indian Overseas Bank Oriental Bank of Commerce 11 .24 73.24 16.62 19.43 100 100 100 1.95 5.44 6.51 9.

From the various e-products that the bank offers.1.7 New initiatives by public sector banks: 1 Specialized branches New products targeted to specific groups Change in structure.1 Definition: Electronic banking is an umbrella term for the process by which a customer may perform banking transactions without visiting a brick and motor institution. Electronic banking: 2. systems and procedures involving quick turnaround time to meet the global standards Marketing orientation Change in ambience Recruitment of specialists Tie-ups sharing networks and strategic alliances 2 3 4 5 6 7 2. this project focuses on the following ebanking facilities:  Internet Banking  Mobile Banking  ATM  Debit Cards  Credit Cards 12 .

6RXUFH$%$3UHIHUUHG%DQNLQJ0HWKRG 3. the products and services obtained through Internet banking may mirror products and services offered through other bank delivery channels. Some examples of wholesale products and services include:  Cash management  Wire transfer  Automated clearinghouse (ACH) transactions  Bill presentment and payment Examples of retail and fiduciary products and services include: 13 . INTERNET BANKING: Internet banking refers to systems that enable bank customers to access accounts and general information on bank products and services through a personal computer (PC) or other intelligent device. Internet banking products and services can include wholesale products for corporate customers as well as retail and fiduciary products for consumers. Ultimately.

as an enabling technology. 14 . electronic mail. and electronic bill presentment and payment systems are an important way for banks to reach their customers. the computer systems that made the information systems operate were rarely noticed by customers. The OCC has determined that a national bank subsidiary may provide home banking services through an Internet connection to the bank s home banking system and. Today. drive ATM machines (transaction processing). Balance inquiry  Funds transfer  Downloading transaction information  Bill presentment and payment  Loan applications  Investment activity  Other value-added services Other Internet banking services may include providing Internet access as an Internet Service Provider (ISP). These systems limited a bank s potential customer base because they required out-of area customers to either incur long-distance charges on their phone bills or subscribe to a particular cable TV service to access the bank. In the past. banks also may have opportunities to expand or change their product and service offerings. banks have used information systems technology to process checks (item processing). Web sites. National banks have experimented with various forms of online banking for many years. With the widespread growth of the Internet. With an expanded market. may also provide Internet access to bank customers using that service. The Internet. and produce reports. incidental to that service. has made banking products and services available to more customers and eliminated geographic and proprietary systems barriers. Historically. customers can use this technology anywhere in the world to access a bank s network. Some of the early experiments involved closed systems where the customers accessed banks through a dial-in or cable TV connection.

ATM and call center transactions cost about 25 cents.3. Allen & Hamilton. may help examiners determine the bank s strategic objectives. These costs are expected to continue to decline. Many researchers expect rapid growth in customers using online banking products and services.1999. Examiners will need to understand the strategies used and technologies employed on a bank-by-bank basis to assess the risk. The actual costs to execute a transaction will vary depending on the delivery channel used. the cost to deliver manual transactions at a branch was typically more than a dollar. and demographic are motivating banks to evaluate their technology and assess their electronic commerce and Internet banking strategies. Marketing strategies will vary as national banks seek to expand their markets and employ lower cost delivery channels. Banks see Internet banking as a way to keep existing customers and attract new ones to the bank. The challenge for national banks is to make sure the savings from Internet banking technology more than offset the costs and risks associated with conducting business in cyberspace. y Cost Efficiencies National banks can deliver banking services on the Internet at transaction costs far lower than traditional brick-and-mortar branches. Some of the market factors that may drive a bank s strategy include the following: y Competition Studies show that competitive pressure is the chief driving force behind increasing use of Internet banking technology. National banks have significant reasons to develop the technologies that will help them deliver banking products and services by the most cost-effective channels. Evaluating a bank s data on the use of their Web sites. and Internet transactions cost about a penny. Many bankers believe that shifting only a small portion of the estimated 19-billion payments 15 . customer service. according to Booz.1 Growth in Internet Banking: Numerous factors considerations including competitive cost. as of mid. For example. and whether the business is expected to be profitable. in second and third place respectively. how well the bank is meeting its Internet banking product plan. ranking ahead of cost reduction and revenue enhancement.

and measure the success of their business venture. The challenge to national banks is to understand their customer 16 . Management should include in their decision making the development and ongoing costs associated with a new product or service. By capitalizing on brand identification and by providing a broad array of financial services. maintenance. y Customer Demographics Internet banking allows national banks to offer a wide array of options to their banking customers. y Branding Relationship building is a strategic priority for many national banks. Those customers place a premium on person-toperson contact. The demographics of banking customers will continue to change.S. including the technology.mailed annually in the U. This will help management exercise due diligence. For many. However. These customers were the first to obtain PCs and the first to employ them in conducting their banking business. Other financial institutions are using the Internet as an alternative delivery channel to reach existing customers and attract new customers. In fact some banks are doing business exclusively via the Internet they do not have traditional banking offices and only reach their customers online. Internet banking technology and products can provide a means for national banks to develop and maintain an ongoing relationship with their customers by offering easy access to a broad array of products and services. and customer support functions. Other customers are early adopters of new technologies that arrive in the marketplace. cross-sell. this is the most comfortable way for them to transact their banking business. make more informed decisions. y Geographical Reach Internet banking allows expanded customer contact through increased geographical reach and lower cost delivery channels. banks hope to build customer loyalty. Some customers will rely on traditional branches to conduct their banking business. to electronic delivery channels could save banks and other businesses substantial sums of money. national banks should use care in making product decisions. marketing. and enhance repeat business.

India is a big potential market and is fast catching up with its Asian counterparts. As per IDC estimates. And though this is just 0. In the US. in the US approximately 78 percent of all commercial banks with assets more than $5 billion. Markets like Korea and Singapore have nearly 10 percent of their population banking over the Internet. From the Asian market experience. indicating that the concept of Internet banking is surely catching on. these markets are way ahead of India both in terms of Internet penetration and online banking penetration. Of these. the truth is that India lags behind other countries in Internet banking.base and find the right mix of delivery channels to deliver products and services profitably to their various market segments. it is clear that Internet banking is here to stay and will be a major channel to acquire and service customers. Though.275 or 12 percent of the total number of banks. Thus. But this figure needs to be adjusted for dormant users and multiple accounts (a user having accounts with more than one bank). the total number of registered users for Internet banking in India is over two million. and 10 percent of banks under $500 million in assets have transactional websites. 43 percent of banks with $500 million to $5 billion in assets. the number of commercial banks with transactional websites is 1. it represents 15 percent of the India s Internet user population.096 percent of the total population. Impressive as these figures might be. 17 . Ten traditional banks have established Internet branches or divisions that operate under a unique brand name. ICICI Bank was the first bank to initiate the internet banking revolution in India as early as 1997 under the brand name infinity . India has a little less than a million active Internet banking users. seven could be called virtual banks. Internet banking has gained wide acceptance internationally and seems to be fast catching up in India with more and more banks entering the fray. At present.

while usage increased only in 1999 due to lower ISP online charges. Though adoption of Internet banking by Indian banks and their customers would not set the Arabian Sea on fire. banks need to grow non-branch delivery networks as a part of their growth strategy.10 per transaction. Initially the Net banking facility was provided in order to meet the information requirements of the customers and gradually it ventured into fund transfers and third party transfers. After ICICI. Therefore. ATMs are currently the hot favorite for most banks.45. but Internet banking definitely has the potential to leave the rest behind.20 and Internet banking at Re 0. no one can deny the obvious benefits that this service offers. IndusInd Bank and HDFC Bank and Timesbank (now part of HDFC Bank). The prohibitive costs of real estate would always make Internet banking a much more viable option in the long run than physical banks. In today s environment besides their physical branches. Internet banking increases operational efficiencies and reduces costs. debit cards at Re 0. thereby fulfilling all the essential prerequisites for a flourishing banking industry.2 The Indian Saga: In contrast. 18 . But even for the Internet as a whole. on the whole. Industry estimates assume teller cost at Re 1 per transaction. were the early ones to bite the technology bullet in 1999. Citibank. ICICI Bank kicked off online banking way back in 1996 and a host of other banks soon followed suit.3. ATM transaction costs at Re 0. 1996 to 1998 marked the adoption phase. Indian banks have an insignificant Internet banking record. phone banking at Re 0. besides giving a platform for offering value added services to the customer.35. Costs of banking service through the Internet amount to a fraction of the costs through conventional methods. increased PC penetration and a tech-friendly atmosphere.

Typically.3. and Union Bank of India. Some argue that the primary reason preventing PSUs from increasing their online banking services reach has been an absence of a legal framework to back up. The enthusiastic response has encouraged the SBI management to extend the service to an additional 500 branches. where the clientele is mostly urban-based falling in the 20-40 age group and who have a higher exposure to technology. a large proportion of their customers are either senior citizens or at least 50+ who have a natural aversion towards adopting new technology. it is lack of zeal and a mindset attuned towards resisting any new technology that is holding back the nationalized banks. Bank of Baroda. launched in July 2001. Syndicate Bank and Bank of India that offer Internet banking services. and regulate internet banking operations in the country. However. Allahabad Bank.000 registered customers across 150 branches. Though the Information Technology Act 2000 attempted to address a number of e-commerce regulatory issues. is in fact doing quite well and has over 18. There are very few nationalized banks like State Bank of India. most PSU banks have the majority of their customer base in the smaller cities or towns and even in remote villages. PSU banks still have a lot of catching up to do on the Internet banking services front. Punjab National Bank. SBI s Internet banking initiative. More than a lack of regulatory framework. But despite positive news like this. not many are willing to buy the argument that it s the lack of regulations that is preventing the PSU banks from taking the Internet plunge.3 The PSU lethargy: Like in all forms of technology innovations. This not the case with private or MNC banks. The average customer profile of PSU banks is also comfortable with the traditional banking system and is not too keen on adopting an online model. PSU banks have remained laggards in the race for adopting Internet banking practices. 19 . there still are not several grey areas which have been spelt out properly. nor have the courts suggested workable modes of implementation. Even in bigger cities.

20 . migrating customers to any self-directed channel is the main goal. Internet banking now seems to be the perfect model to complement the whole system. between 9 AM to 12 PM. The workplace happens to be the most favored place to access Internet for banking purposes. Among the elite Internet banking users. One can sum up the whole Internet banking scenario with the adage. At least in urban areas.Even the IDC survey seems to confirm this premise.4 Bouquet strategy: This. The home comes a close second while cybercafés take the third place. What is ultimately emerging is that though there is certainly a high level of importance attached to Internet banking. The users (24 percent) who access the ATM near their office mostly go during the first half of the day. but most preferred time by all users (41 percent) is between 6-9 PM. the future of banking will be one in which customers can address most of their needs through selfdirected means and the key differentiator will be how effective a bank is in getting its customers online and deriving measurable value from this presence. However. it has been found that people access their account through the Internet once every week. For while winners may not see massive gains. 3. while phone banking and mobile banking are also on the upswing as the user base grows. it is at present not necessarily a priority for all banks. that is. explains why more and more banks are looking at Internet banking as another attractive addition to their bouquet of delivery channels. Similarly users visit their ATM centre on an average of two times per week. probably. ATMs are already fast becoming the most popular mode of banking. As far as banks are concerned. ATM in the close vicinity to the office is the most preferred place among users for banking. the losers will fade from view as their ability to compete is eroded with every mouse click. those customers who belong to Socio-Economic Class A1 (SEC A1) in the top five cities.

withdrawals. It might also be referred to as M-banking or SMS banking. which are messages sent to your cell phone that alert you to activity on your account such as deposits. 21 . technologically oriented lifestyle. The amount of banking you are able to do on your cell phone varies depending on the banking institution you use. MOBILE BANKING: Mobile banking is a way for the customer to perform banking actions on his or her cell phone or other mobile device. It is a quite popular method of banking that fits in well with a busy.3. Some banks offer only the option of text alerts. and ATM or credit card use. This is the most basic type of mobile banking.5 Banks key pain points and opportunities in internet banking: Internet banking can be a driving part of an integrated channel mix Develop products and services customized to the internet channel Enhancing internet banking to become a sales channel Internet banking processes not realized as STP Consumer confidence in security starts to reduce Internet banking solution not stable/ scalable/ flexible enough Internet banking user experience & functionality not comprehensive 4.

within a certain period of time. While all of this is true. Change your password often. which is good advice. ATM cards/debit cards. you need to do your part to protect your information. stop payment on a check. some are concerned about the security of mobile banking.A more involved type of mobile banking allows the user to log into his or her account from a cell phone. and then use the phone to make payments. credit cards and prepaid cards (that permit cash withdrawal) can be used at ATMs for various transactions. However. Using two passwords increases the security of the account. transfer money between accounts. among other transactions. along with the one-time use password. In addition to cash dispensing. You will then usually need to enter both the password you have already set. or make a phone call. it is equally important to use an alphanumeric password and to keep your PIN safe. receive a new PIN. Though you are logging on to a secure server at the bank through your cell phone. or any birthdays. an important concern with mobile banking. A one-time use password might be sent to a cell phone or other device when you wish to log into your account. your child's name. ATMs have following services/facilities: 22 . and do not use your pets' names. naturally. log on from their home computer. or view a monthly statement. ATMs Automated Teller Machine is a computerized machine that provides the customers of banks the facility of accessing their accounts for drawing cash and to carry out other financial transactions without the need of actually visiting a bank branch. This advice applies to all passwords. This type of banking is meant to be more convenient for the consumer than having to physically go into a bank. check balances. The one-time use password expires. notify the bank of a lost or stolen credit card. not just those used for mobile banking. 5. after it is used once or after a time limit has passed. For this reason. Most experts advise against performing any large transactions over mobile banking. many banks are now sending one-time use passwords for an extra step in security.

The services offered may vary from bank to bank. CREDIT CARDS: Credit card is given by the banker to the customers in whom the name of the customer is embossed in blocks letters. y Affinity card o A card offered by two organizations of which one is a lending institution and the other a non financial group. TYPES OF CREDIT CARDS y Charge card o In this card. 6. nonprofit groups. Balance Enquiry  Cash Deposit  Funds Transfer  Prepaid Mobile Recharge  Mini/Short Statement  PIN Change etc. These cards carry special discounts. petroleum companies issue affinity cards. y Standard card 23 . or may depend on the capacity of the machine at the ATM outlet to provide such services. A list of vendors or sellers will be given by the banker to the customers. the name of the bank of issues and expiry are also mentioned on the field the reverse side of the card will bear the specimen signature of the customers. airlines. the cardholder has to make full payment of the charge by the due date. here dues are not allowed to carry forward. Unlike other credit cards. Here schools.

in case of his default on payment. sometimes called chip[ cards. carrying the logo of visa. y Platinum card o A credit card with a higher limit and additional perks than a gold card. o A credit card issued by visa. y Titanium card o A card with a even higher limit than a platinum card. contains a computer chip embedded in the plastic where a typical credit card's magnetic strip can hold only a few dozen characters. y Secured card o A credit card is given to a card holder who has savings deposit which will take care of his outstanding balance.o It is a normal credit card which carries limit on transactions. y Classis card. according to the credit worthiness of the card holder. In addition. When read buy a special terminals. Income eligibility is also higher. y S m a r t ca r d o Smart cards. strip can hold only a few dozen characters. the cards can perform a number of functions or access data stored 24 . y Gold card o A credit card that offers a higher line of credit than a standard card. issuers provide extra perks or incentives to cardholder. smarty cards are now available with 16k of memory.

Debit Card Types There are two types of debit card categories. Debit cards may also allow for instant withdrawal of cash. as the funds are withdrawn directly from either the bank account or from the remaining balance on the card. These cards are provided with a number of features. Some of these cards are as follows: y y y y y Gift Cards Payroll Cards Merchant Cards Incentive Cards Student Cards 25 . where a customer can withdraw cash along with their purchase. In some cases. DEBIT CARDS: A debit card (also known as a bank card or check card) is a plastic card that provides an alternative payment method to cash when making purchases. These are the virtual debit cards and the physical debit cards. A wide range of debit card products are offered under these categories. Merchants may also offer cash back facilities to customers. There are a number of virtual credit cards offered by the companies. the cards are designed exclusively for use on the Internet. 7. These cards can be used as cash cards or as credit cards with a present credit limit. it can be called an electronic cheque. or used as ID cards with stored in passwords. Functionally. and so there is no physical card. Virtual Debit Cards These cards have been designed as a measure to check the fraudulent activities that are done through the Internet.in the chip. acting as the ATM card for withdrawing cash and as a cheque guarantee card.

Merchant Cards. Services Offered by Physical Debit Cards y ATM Services y Money Transfer Services y Online/Offline Payments y Depository Services y POS Terminals 26 . Payroll Cards. Gift Cards and so on. Student Cards.Services Offered by Different Types of Virtual Debit Cards y y y y y Payments Through Internet SMS Transfers Offline Payments Money Transfer Depository Services Physical Debit Cards These cards are similar to other plastic cards but the main difference is that the cardholders should put the money in the card account before using the card. and Government Payment Cards and so on Disposable Debit Cards: Some of these cards are Incentive Cards. Different types of Physical Debit Cards are provided by the card companies. Some of these are the following: Re-Loadable Debit Cards: There are a number of cards that are provided as Re-Loadable Debit Cards. These are Payment Cards.

PNB has continued to retain its leadership position amongst the nationalized banks. PNB is ranked as the 3rd largest bank in the country (after SBI and ICICI Bank) and has the 2nd largest network of branches (5002 offices including 5 overseas branches) 8. life and non-life insurance business. With over 56 million satisfied customers and 5002 offices. the bank has also entered the credit card & debit card business. PNB has remained fully committed to its guiding principles of sound and prudent banking. This bank is government owned and is the second largest commercial bank owned by the government of India.8. Today. PNB has achieved significant growth in business which at the end of March 2010 amounted to Rs 435931 crore.2VISION "To be a Leading Global Bank with Pan India footprints and become a household brand in the Indo-Gangetic Plains providing entire range of financial products and services under one roof" 27 . with assets of more than Rs 2.633 crore. etc. 96. It was registered under the Indian Companies Act in 1894.1 Company Profile: Punjab National Bank is one of the oldest banks in India. Besides being ranked as one of India's top service brands. Gold coins & asset management business. Since its humble beginning in 1895 with the distinction of being the first Indian bank to have been started with Indian capital. bullion business. large franchise value and good brand image. Apart from offering banking products. The bank enjoys strong fundamentals. Punjab National Bank: 8.

57% Earning Per Share Rs. 296633 Cr 28. Retail. 514. The performance highlights of the bank in terms of business and profit are shown below: Operating Profit Net Profit Total Business Deposits Credits Total Assets : : : : : : Rs. better asset liability management. improved margin management.44% Book Value Per Share Rs. 3905 Cr Rs. 7326 Cr Rs.4 Overview of the performance as on Mar 10: 40. 123. 249330 Cr Rs.16% Net NPA ratio 0.3 MISSION "Banking for the unbanked" 8. Deposit. the bank has retained its NUMBER ONE position among the nationalized banks in terms of number of branches. thrust on recovery and increased efficiency in core operations of the Bank. In particular.90% 20.98 Capital adequacy ratio 14. The impressive operational and financial performance has been brought about by Bank s focus on customer based business with thrust on CASA deposits. Advances. total Business.85% share of CASA deposits Gross NPA ratio 1. Assets. SME & Agri Advances and with more inclusive approach to banking.77 Punjab National Bank continues to maintain its frontline position in the Indian banking industry.10% 28 .60% 20.8.53% Return on Assets 1. 186601 Cr Rs. 435931 Cr Rs. Operating and Net profit in the year 2009-10.40% 19.60% 18.71% NIM 3.80% 26.

 Operational risk solution operationalized to monitor compliance with BASEL II requirements. The bank has made rapid strides in this direction. the bank with more than 350 ATMs has the largest ATM network amongst Nationalized Banks. payment of bills of utilities.  All branches of the Bank are under Core Banking Solution (CBS) since Dec 08. Towards developing a cost effective alternative channels of delivery. ECS facility enabled at all 49 centers.  First nationalized bank to implement the enterprise-wide data warehouse to integrate data from multiple source systems and provide MIS and data feed to anti money laundering and operational risk solution. manage the security setup of the bank s centralized technology activities. thus covering 100% of its business and providing Anytime Anywhere banking facility to all customers including customers of more than 3000 rural & semi urban branches.  The bank has also been offering Internet banking services to the customers of CBS branches like booking of tickets.  CBS platform is upgraded with Oracle RAC (Real Application Cluster) to meet scalability and availability.5 Punjab National Bank s robust technology platform: PNB has always looked at technology as a key facilitator to provide better customer service and ensured that its IT strategy follows the Business strategy so as to arrive at Best Fit .8.  5116 service outlets (SOLs) at 2694 centers across the country facilitating around 56 million account holders with Anytime and Anywhere Banking . first of its kind for any bank in the country. purchase of airline tickets etc. 29 . NEFT.  Effective and seamless integration with payment systems like RTGS. First Finacle CBS setup to have RAC.  All 6 PNB sponsored RRBs 100% CBS compliant covering 1416 SOLs.  A world class security operations centre to monitor.

6 Punjab National Bank increasing its global footprints: Bank is in the process of:  Upgrading its Representative Offices in China and Norway to branch.7 Bank has been a recipient of many awards and accolades during the year: Gold trophy of SCOPE Meritorious Award for Excellence in Corporate Governance 2009 by Standing Conference of Public Enterprises  As per Financial Express-Ernest & young (FE-EY) India s Best Banks Survey. PNB tops the list of nationalized banks with a global ranking of 695.  The Economic Times has ranked CEO of PNB as the 32nd Most Powerful CEO of 2010. 8.  IDC Financial Insights Innovation awards 2010 by IDC Financial Insights Livelihood Linkage of the milk producers in 30 . substantial improvement over last year s placement at 946th position.  As per HT-Mars Survey on Customer Satisfaction. head quartered at Vancouver. Uttar Pradesh.  As per the Forbes Annual list of 2000 global giants.  Setting up a wholly owned subsidiary in Canada.  Setting up of representative office in Sydney.8. PNB stood NUMBER ONE in Delhi and Chennai in terms of customer satisfaction. PNB is identified as the best bank among the nationalized banks in terms of overall ranking.64% stake with management control in JSC Dana Bank in Kazakhstan.  Acquiring 63. Australia.  Skoch Challenge Award 2010 for Bulandshahr District.

PNB Pragati Udhami. Anupam Account.8. Multi Benefit Deposit Scheme Credit Schemes Flexible Housing Loan. Personal Loan. PNB Farmers Welfare Trust Corporate Banking finance Business Sector PNB Karigar credit card. corporate banking and home loans segment. Credit Cards Social Banking Mahila Udyam Nidhi Scheme. Car Finanace. Savings Fund Account Total Freedom Salary Account.8 Products and services: Punjab National Bank offers a wide range of products and services in Personal banking. Mahabachat Schemes. PNB Vidyarthi SF Account. PNB Mitra SF Account Current Account Roamer Fixed Deposit Schemes Spectrum Fixed Deposit Scheme. PNB Gaurav. PNB Prudent Sweep. Krishi Card. PNB Vikas Udhami Gold Card scheme for exporters. EXIM PNB Vaibhav. PNB Smart 31 . PNB Kushal Udhami.

PEST Analysis: Political Regulatory Bodies Govt. policies International legislation Technological Competent technology development IT Global communication Innovation potential Economic Economic trends (Indian & Global) Seasonality and weather issues Interest and exchange rates Social Lifestyle trends Customer attitudes and opinions Media views Brand image Advertising and publicity 32 .9.

SWOT Analysis: STRENGHTHS Loyal customers Brand image Low opening balance required Speedy transactions Easy Availability of loans at low cost of interest 100% CBS enabled branches Less affected by the depreciation of other currencies than the foreign banks OPPORTUNITY Further developments in internet banking Training staff in using computer aided softwares Selling more of self branded products than third party products Proper implementation of CRM WEAKNESS Poor ATM services Not so attractive ambience Attendance of queries over the phone Ineffective marketing of financial products Grievances of increasing rates for locker services Relationship managers not very visible Frequent link failures bringing activities to halt THREAT Private sector banks Other public sector banks offering higher rates of interest on deposits Young generation does not have a very positive image about the branch (obsolete and not eye catching) so they are reluctant to open their accounts. 33 .10.

11. TOWS Analysis: 34 .

1. 12. ATMs.2 Exploratory Study: Determine the approximate area where the problem lies 35 .1 Research Plan: 12. methodology and research instrument: 12. 12.1 Research Problem: With more and more banks coming up the competition level is soaring high.  To give PNB e-banking a completely new and fresh look. Credit cards. Debit cards.2 Project Objectives:  To study the e-banking potential in India in the current scenario.3.3. The research attempts to understand how its existing customers rate the various parameters and where they expect improvements. This research paper is directed towards re-branding suggestions for various PNB e-products like internet banking.3 Research design.  To analyze the correlation between the quantitative and the qualitative factors in overall customer satisfaction.  To measure the customer satisfaction through a questionnaire generating customer responses. Research Statement: 12.3.1.  To recommend better practices as felt through observations and customer suggestions.1Primary Investigation: In which data on the situation surrounding the problem will be gathered in order to arrive at the correct definition of the problem.  To study brand image of various e-products at PNB in the minds of the customers. mobile banking. 12.12.

Online Payment Facility for railway reservation through IRCTC Payment Gateway Project Online Utility Bill Payment Services which allows Internet Banking account holders to pay their telephone. 365 days banking from the PC of the user. The most important condition of all is the software which has to be availed by the consumer for himself which is given below: 36 . mobile. 12. The following are some of the services available online: y y y y y Access to account Complete details of transactions and statement of account Online information of deposits. loans overdraft account etc.12. It provides 24 hours.3. By analyzing the secondary data. electricity.2 Research Design: Research was initiated by examining the secondary data to gain insight into the problem. the study aim is to explore the short comings of the present system and primary data will help to validate the analysis of secondary data besides on unrevealing the areas which calls for improvement. In order to avail internet banking. A user can operate anytime and from anywhere its accounts. the consumers have to agree to certain conditions to use the internet banking facility continuously without any problems. insurance and other bills anytime from anywhere from their desktop.4 Analysis and Rebranding of PNB Internet Banking: PNB Prefect Net Banking Enjoy the benefits of internet banking 24x7x365 PNB offers Internet Banking services for both to the Corporate and Individuals.

The foreign banks don t find any problems as far as technology is concerned whereas nationalized banks require particular software for the consumers to use their internet banking services. The internet banking facility provided by PNB is overall good as compared to the other banks but requires a few changes in terms of its looks and ease in complexities which would attract the consumers to use more and more internet banking. This also indicates the PNB culture that customers are a priority for all PNB employees. The aesthetics of the webpage are not very pleasing.The Bank requirements for software in order to let the consumers use internet banking differs as per their technology usage. It says that no matter what the time is. The current positioning of PNB internet banking defines it as a perfect banking solution for internet users. the name you can 37 . customers can use internet banking facilities any time as per their convenience. This goes in line with the PNB tag line.

4. The brochure displays a human hand pressing the enter key of a laptop on which the words PNB Safe Net Banking are highlighted. It suggests to the customers that Punjab National Bank is the one which Indians have always trusted and with the advancement of technology PNB has improved itself for the better. Indian culture will still need time to adjust to the changing technology.4. in order to make it convenient for the customers to understand the advertisement. yet PNB should be very careful to lay down its positioning in a market where 38 . Though internet banking in India is picking up fast pace and the day is not far when almost all banking transactions will be possible virtually. We can say that advertisement is directed towards providing information to the customers rather than persuading them to use internet banking services of PNB. We see that most of the advertisement is revolving around the 24x7x365 online access and the variety of facilities that it provides. As PNB has basically catered to a huge number of lower and middle class citizens of India.2 Suggested perception towards Internet Banking Advertisements: Internet banking is very much new to India when we compare it with other countries. The brochure also says that the bank caters to two types of customers:  Retail customers  Corporate customers The brochure also lists down various facilities that are made available to both types of customers. Safety and security of customers is equally important for PNB. 12. 12. There is also a mention of Help Desk. The screen of the laptop shows the PNB online website. In other parts of the advertisement we nowhere see how PNB projects itself as safe and secured.1 Findings: The PNB advertising just touches upon the Safe Net Banking positioning.bank upon. the brochure is also printed in Hindi when we flip the advertisement to other side.

generates specific and to the point information. Following are some of the suggested attributes on which further detailed research is carried on:  Safety and security  User friendly  Quickness of transactions  Improved technology  Better services  All solutions in one 12. Therefore it is very difficult to differentiate oneself from the competitors when there is less scope for point of differentiation. easier to tabulate and interpret. I suggest that PNB should bank upon one or two attributes in order to leave an impact in minds of the customers. The questionnaire has been close ended but suggestions from the customers have been framed as the solo open ended questions. A structured questionnaire was framed as it is less time consuming.internet banking has already become a part of all the competitors banks. Any special remarks which customers gave regarding any of the aspects of the close ended questions has been noted and presented in recommendations or reflected in company s strengths (if the comment is positive). Moreover respondents prefer to give direct answers. 39 .4. Due to time limitation and other constraints direct personal interview method is used.3 Developing Research Plan: The data for this research project has been collected through self administration. The advertisements that PNB creates should therefore be able to position it in such a way that it makes an impact in the minds of customers and helps in creating brand loyalty. The facilities that PNB advertises are now-a-days given by almost all the banks.

4. They were the main source of primary data. it becomes necessary to take sample from the universe to know about its characteristics. Research Instrument: Structured Questionnaire. Sampling size: My sample size for this project was 30 respondents. it was necessary for me to take a sample size of 30 respondents.5Sampling plan: Since it is not possible to study whole universe. The secondary data was collected on the basis of organizational profile.12. management books. preserved information in company database and website of the company. Contact Method: Personal Interview. 40 . 12. Since it was not possible to cover the whole universe in the available time period. news papers.4. official records.4 Collection of data: Secondary data: It was collected from internal sources. The method of collection of primary data was direct personal interview through a structured questionnaire. magazines. Sampling Units: Customers of Punjab National Bank visiting the branches Sample Technique: Random Sampling. Primary data: The customers who visited the bank were interviewed (those already having an account with PNB).

analysis on one day or in one segment can change very quickly. 12.4.  In a rapidly changing industry.7 Research limitations:  The research is confined to a sample of population only and does not necessarily shows a pattern applicable to the entire population.4.  Many data. The environmental changes are vital to be considered in order to assimilate the findings and in such a short duration an accurate analysis was not possible. Many respondents were very casual in their answering of the questionnaire and did not give due attention while answering. 41 . The questionnaire has been prepared accordingly to generate the amount of information which account to customer satisfaction in internet banking. were unavailable.  Some respondents were reluctant to even respond. which would have refined the project.6 Data collection instrument developed: The mode of collection of data will be based on survey method. Primary data collection will be based on personal interview. The time period being about 56 days it becomes impossible to cover a large number of population.12.

what is/are the reasons for not availing this facility? Not aware that such a service exists Difficulty in operations Transactions are not speedy Security Issues are a concern Other Complex procedures for starting Internet Banking of PNB is not user friendly Information is not available easily 3. If you require assistance we would appreciate if you provide us with your contact details.8 Questionnaire 1. (Optional) 42 .4.12. If not. Do you use internet banking services of PNB? Yes No 2. Would you use these facilities if you are given assistance that you require to use it? Definitely Probably not Probably Definitely not Uncertain 4.

How much are you satisfied with Internet Banking of PNB? Very Much Satisfied Dissatisfied Satisfied Very Much Dissatisfied neither Satisfied nor Dissatisfied 3. I use frequently. Account Viewing e-Pay for Bills e-Remit/Fund Transfer e-Trading e-Payment of Direct Taxes e-Payment of Central Excise and Service Taxes e-Ticket for Air or Rail Travel I have used at least once. 43 . Please Mark for your choices. I am aware. What problems do you generally encounter while using the Internet Banking of PNB? 5.Questionnaire for people using PNB internet banking 1. Please Mark for your choices. How frequently do you encounter problem in PNB-Internet Banking? Very frequently Rarely Frequently Very rarely Not often 4. 2.

What changes do you suggest for website of PNB internet banking in terms of its appearance? 7. Quickly Answered Satisfied Neutral Dissatisfied Very Dissatisfied 8. Kindly put the tick on the word which you feel appropriate for Internet Banking Service of PNB: 44 . Agree Neutral Disagree Strongly Disagree 6. Internet Banking section of PNB website is cluttered with content Requests and complaints are timely addressed.Strongly Agree Internet Banking section of PNB website is informative. Helpline Assistance provided with Internet Banking: Very Satisfied Call handled properly and not kept on hold Courteous and Professional manners shown on call. Internet Banking of PNB is secured. PNB Staff associated with Internet Banking is helpful. Internet Banking of PNB caters to all my banking needs.

How do you describe PNB internet Banking compared to the other banks? Very Good Good At Par Poor Very Poor 11. 12.Easy Safe Quick/ Prompt Excellent Complicated R i sk y Slow/ Delayed Poor 9. relative or an associate? Definitely Probably not Probably definitely not Uncertain 45 . Do you have any suggestions for PNB which can help PNB improve the service level? Please do mention your suggestions regarding the Internet Banking Products you would expect from Bank which are not currently Provided. Would you recommend Internet Banking of PNB to your friend. Have you used Internet Banking of any other bank? Yes No 10.

46 . This shows us that PNB has not been able to attract its existing customers to internet banking.12.4. let alone be new customers.9 Analysis and interpretation through EXCEL: 1) PNB customers using internet banking services 12 18 YES NO Interpretation: Only 40% of the PNB customers actually use PNB internet banking facilities. This data was taken from an urban area. of customers but these are not that techsavy as yet. in which PNB customers are more techsavy as compared to the rural areas where PNB has maximum no.

Other area of concern is slowness of transactions. Information could also get siphoned off while the customer is logged on to the bank s website. Other requests might draw the customers to be a part of the survey. This happens through pop-ups. Problems regarding speed of the transactions: The customers are of the opinion that PNB internet banking is not the speedy. Phishing scams in Internet Banking: Fraudsters can get personal information from bank s customers through emails and phones. There are server problems where internet banking facility doesn t work effectively.2) Reason for not using PNB internet banking facilities 1 1 Complex procedures for starting 2 8 4 Difficulty in operations Internet banking of PNB not user friendly Transactions not speedy Security issues are a concern Do not need 2 Interpretation: From the above chart it can be clearly understood that security issues is an area of concern for PNB internet banking. These are very cleverly camouflaged and appear to be originating from the bank itself. The convenience of internet banking can be compared to electricity. Personal interaction with customers and the Customer Care Officers gave us the actual problem area and the suggested solution to this issue. It has to be used with care to prevent rude shocks. This problem 47 . which appear alongside bank s webpage asking unsuspecting users to disclose confidential information.

occurs especially on Sundays. 3) 1212 12 10 10 8 8 E-remit/funds transfer 6 5 44 4 22 2 5 E-trading E-payment of direct taxes E-payment of central excise & service tax E-ticket for air & rail travel 0 I am aware I ave used atleast once I use frequently 8 1010 Account viewing E-pay for bills Interpretation: the above chart shows that almost all the PNB Net Banking users are aware of the various facilities the PNB offers. E-trading and E-payment of taxes are the ones that none of the PNB customers have tried. so it becomes very difficult for the customers to fulfill their needs as they had trusted on the PNB Net Banking 24x7x365 days service and they get disappointed. 48 . When the banks are also closed.

of its customers for internet banking. 5) Strongly agree Website is informative Website is cluttered 8 with content Complaints are timely addressed Staff is helpful Net Banking is secured Caters to all the banking needs 4 6 2 9 8 3 2 2 6 4 2 1 3 12 Agree Neutral Disagree Strongly disagree 49 . Nothing can be interpreted out of this chart.4) Satisfaction level of PNB Internet Banking users 1 3 Very much satisfied Satisfied 2 2 Neither satisfied nor dissatisfied Dissatisfied Very much dissatisfied 4 Interpretation: We have got mixed views regarding PNB internet banking satisfaction of the customers. The only conclusion we can draw is that PNB has failed to satisfy maximum no.

internet banking of PNB is easy and excellent. but at the same time it is a bit risky.6) Words appropriate for PNB Net Banking: 4 8 7 5 Easy Safe Risky 6 2 6 10 Quick/Pro mpt Excellent Poor Interpretation: In the minds of the customers. 50 .

7) escription of 1 1 et anking Services 2 Very good 3 5 Good At par Poor Very poor Interpretation: PNB Net Banking has created an average image in the minds of the customers. The facilities given by PNB are given by other banks also. Customers do not see anything extra given to them by PNB Net Banking. 51 . In order to distinguish itself from the competitors PNB should come up with strategies that will ensure a better and a distinctive brand image in the minds of the customers.

12. of tech savy customers Poorly defined target group Ineffective marketing of internet banking Frequent link failures bringing activities to halt Opportuniti es Further development in internet banking Training staff using computer aided softwares Huge netowrk of traditional banking customers More and more Indians becoming tech savy Increasing youth poulation which prefer e-banking over traditional banking solutions Threats Private sector banks more consumer friendly Internet banking of SBI more popular over PNB Young generation does not have a very positive image about the bank (obsolete and not eye catching) so they are reluctant to use PNB internet banking PNB not very as popular in urban areas as in rural areas 52 .1 SWOT Analysis: Easy to transact Strong brand image Less complicated 24x7x365 days availability Tech savy Highly volatile CBS system Strengths Weakness Poor infrastructure which cause server problems Less no.4.4.10 Other Analytical Tools: 12.10.

Threat of substitutes is moderate because we see more and more foreign banks having tie ups with Indian companies and coming up with more and more techsavy solutions to traditional banking. However the legal framework of India has prevented this threat to a large extent.12. Bargaining power of buyers is high because switching costs are low for the net users. There are too many players in the market and the customer prefers internet banking wherever he gets better facilities and improved services. The services offered are undifferentiated. This aspect is more to do with the behavioral aspect of customer.10. experience curve. there are too much legal compliances to be met. But long associations with a particular bank generate customer loyalty and unwillingness to switch. thus the services are generally undifferentiated. People use more than one internet bank account and thus avail the facilities of more than one bank. Risk of entry by potential competitors is low because the cost of entry is very high. brand identity is strong and distribution channels (number of branches) require time and capital to be developed.2 Porter s 5 forces model: Intensity of rivalry among the industry is high as State Bank of India and ICICI Bank are its main competitors. government legislations are high.4. Bargaining power of suppliers is moderate as the switching cost is not very high. Also there are many players offering similar services. 53 .

12.4.10.3 Ansoff s Product- Market Mix:
Existing Products Existing Markets Market Penetration Product Development New Products

New Markets Market Development Diversification

The proposed strategy is market penetration because:  Products offered cannot be differentiated too much, so there is less scope for product development.  Highly competitive industry as the number of rivals is very high trying to snatch over the competitor s customers.  The industry demands a long term relationship based on customer trust and convenience so if the bank goes on increasing its customer base without serving to the needs of existing customers adequately they might shift to competitors. It is important to practice retention marketing here. Market development is also a strategy that should be adopted but not at the cost of the existing customers because new market segments emerge due to changes in consumer lifestyles or demographics. It should try and appeal to market segments it is not yet satisfyingyoung professionals.

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12.4.11 Strategies for rebranding of PNB Net Banking: 
If PNB wants to increase its reach in India, it has to target the untapped market. PNB should reach the Indian youth so as to increase its customer base. Today s youth is techsavy and can understand the PNB internet banking better. The youth today is very skeptical about PSUs. They are of the opinion that private banks are more convenient and more consumer friendly. In order to change this attitude of the youth and make them adaptable to PSUs, PNB should initiate huge advertising campaigns which will be targeted to the youth and which will spread the message of convenience.  Suggested tag lines for PNB Net Banking:  Your money just a click away!!!  Banking now just a click away!!!  Security is our priority convenience is your right, Together we make your banking experience bright!!!  In order to reach out to the youth social networking sites like Face book, Twitter, Orkut, LinkedIn can be of great use.  The best way to reach out to the target customers is to make PNB more user- friendly. In order to do this the employees will have to be trained about the working of the internet banking website so that they can help solve the customer queries better.  One more strategy could be to go for retention marketing, especially for diamond customers, rather than targeting customers low on net worth.  The trend suggests that PNB has always been low on advertising. It hasn t advertised much for its traditional banking facilities as well. Let alone be the newly initiated services like e-banking. A rebranding exercise will be successful only when PNB invests in heavy advertisement campaigns for its e-banking facilities. This facilities are at a very nascent stage and in order to survive in the race of being the most techsavy bank, PNB will have to take help of huge advertising in:  Print media and television  Internet  Hoarding and banners
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 Stalls in trade fairs  Distribution of leaflets containing detailed information  Employees in PSUs are always considered to be a little calm in their working as compared to private banks. A good way to motivate them would be to give them enough incentives so as to increase sales and give them recognition for the same.  Security of net banking is one of the greatest concerns why PNB Net Banking is not very popular. In order to build more trust in the minds of the customers, I would suggest PNB Net Banking should be more secured and trust worthy. One important strategy would be to leverage the privacy of mobile phones and associated it with internet banking.  Customers who transact via PNB Net Banking will receive a password on their mobile phone through SMS facility. This password will have to be entered in the Net Banking system within 2 minutes of receiving. If a customer fails to enter the password within the time limit, the transaction will fail to be successful and the customer would be out of the system because the fail of transaction would indicate that the customer is not authentic.  Thus, in order to transact via PNB Net Banking customer will have to go through a highly sophisticated techsavy secured procedure of two-password system. One password will be a permanent one which will serve as the customer identity and the other password will change for every transaction which will ensure that PNB Net Banking is secured from scams like phishing.  This type of high tech security would make PNB Net Banking free from phishing which is now a days the most concerned area in internet banking.  The servers linked to internet banking should be maintained properly and should be checked from time to time. Convenience of the customers should always be the priority.  PNB will have to develop a strong brand image especially in the minds of young professionals who prefer private banks by stressing on the key features like transparency and reliability.

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PNB Mobile Banking offers services like checking account balances. Services provided for credit cards 3. Being a newly launched product it has covered a lot of points which are very beneficial to the corporates or individuals of service class. Some of the banks do not have these services. which is giving an edge to the bank. 2010. transfer of funds. request for a cheque book and many more add-ons features. It shows that the bank is very particular about its conusmers getting the major accounting facilities. The Mobile Banking Services are being offered in line with the guidelines of the Reserve Bank of India. checque book etc. we have compared it on the basis of three parameters 1. 57 . It has all the basic amenities of mobile banking but since it is at its infant stage. Services provided for bank accounts 2. When the services are being compared to the banks.12. Comparing the mobile banking services of PNB with other banks. It also shows the professional attitude of the bank which is very particular about its consumers which majorly belong to the middle income group section. stop-payment of cheques. PNB Mobile Banking would enable PNB customers in accessing banking services anytime/anywhere on-the-move through mobile phones. Other services  On comparing the banks we get to know that PNB has all sorts of individual/ corporate facility of keeping a track of the account. it requires a lot of improvements.5 Analysis and Rebranding of PNB Mobile Banking: Mobile banking in PNB is a product which was recently introduced on 12th Feb. balance enquiry. It is compatible with popular mobile devices across most GSM & CDMA operators with easy to operate features.

This will strengthen its hold in mobile banking era. The major features that a conusmer would like to knvow when he swaps his credit card is how much he has used and what he has paid to cover his dues and when he has paid the dues.  Coming on to the other services. PNB lacks in this section completely.  Rural marketing can be a good strategy as mobile banking can be quite popular in rural markets with the rare availability of internet facilities and less no. it would take some time to come at par with the other banks. kahi bhi  The T. advertisements should be aired on national channels. ICICI and the foreign banks like Standard chartered bank and Citibank have all these facilities to cater its target audience. 58 . The reason being the same. since it is newly launched. convenient and secured should be the attributes PNB should bank upon so as to increase its reach. This section too is being well established by other banks making more space in their pockets for the new consumers.  Techsavy. especially doordarshan. of bank branches in the most remote areas.  Suggested taglines for PNB Mobile Banking:  For urban areas: a very mobile future of banking  For rural areas: aapki suvidha humari zimmedari  For rural areas: aapka bank ab aapke paas kabhi bhi.V.  As PNB already has a strong hold in north India. All these facilities are more for youngsters or the new employees who like to do things faster which helps them to save both time and energy and also it gives them a lot of facilities. being an infant it has not yet covered the credit card and other sections. Whereas the other banks like the private sector banks HDFC. it should leverage this opportunity to do test marketing of its mobile banking with a strong brand identity.1 Strategies for Rebranding of PNB Mobile Banking:  PNB mobile banking being at its initial stages of development has to be backed up with good advertising strategy in order to attract more and more customers.5. Here PNB lacks in this segment. 12.

When you withdraw cash from the Punjab National Bank ATMs.12. you will not have to carry hard cash with you whenever you go out. The Punjab National Bank ATMs are opened all the year round on a 24X7 basis. This will help you keep a track of your transactions. Thus you can access your account as and when you require it. The Punjab National Bank ATMs you can also deposit the cheques. The Punjab National Bank ATMs are one of the well equipped ATMs thereby it has become extremely easier for the people to withdraw cash. Chennai. So your cheques will be properly deposited. 59 . major offices and others. Bangalore. The Punjab National Bank ATMs are one of the best in terms of security. It is also easier to operate the Punjab National Bank ATMs as well. Thus. do not forget to collect the card. Uttar Pradesh as well as Ghaziabad. Hyderabad. Gurgaon. The Punjab National Bank ATMs are known for the large number of facilities that it offers to its customers. The ATMs are not closed even on the holidays.6 Analysis and Rebranding of PNB ATMs: Punjab National Bank ATMs are one of the ATMs which are used by a large number of people because the ATMs are located in all the major cities of India. They can be used in other ATMs as well. Kolkata. Mumbai. The banks have made up such tie ups with other banks in order to provide the best facilities to the customers. you will be able to know more about the limits of cash that you can withdraw from the ATM at one go. The Punjab National Bank ATMs are located in Delhi. market places. Thus it has extremely safe as well. Both the credit cards as well as the debit cards offered by the Punjab national bank can be used in any of the Punjab National Bank ATMs. Thus withdrawing cash has become extremely easier with the Punjab National Bank ATMs. Pune. The Punjab National Bank ATMs are located at all the important parts of the cities such as near the hospital. money as well as the mini statement they offer. Cash withdrawals have been thus made extremely easier because of this. Once you visit the Punjab National Bank ATMs.

does not provide these facilities through its mobile banking. cash withdrawals. Citi Bank. PIN change. etc.  PNB should be very aggressive in its advertising campaigns for the ATM services. This type of strategy is called co-branding where in PNB will be able to distinguish itself from the competitors by providing internet banking as well as ATM 60 . Standard Chartered. or payment of utility bills. They have used animated characters to show that BOB has ATM services anywhere and everywhere. The identity of PNB can be associated with its tag line which will be a driving factor of PNB s advertising campaign s success.1 Strategies for Rebranding PNB ATMs:  PNB provides very basic services of ATMs as compared to other banks.  The Bank of Baroda recent advertisements of ATMs are very eye-catchy and effective. internet packs. donations. flexi top-ups. These facilities are provided by Axis Bank.  One more strategy to be suggested is setting up of a computer in each of the ATMs.When we compare PNB ATMs with the others. mobile phones recharge. But it does not provide facilities like cheque deposits and ordering a cheque book. The computer should give the customers access to PNB website and PNB internet banking facility. gives all the facilities be it balance enquiry. This would ensure better footfall in PNB ATMs as the tag line is already very popular all over India. Mini statement. 12. especially ICICI Bank and Standard Chartered Bank who provide variety of other services through ATMs like Mutual Fund payment. The advertisements should convey the message of PNB tag line: the name you can bank upon. money transfer between linked accounts. Insurance Premium payment. we can see that PNB like many other banks. ICICI Bank. Their advertisements give major emphasis to the symbol A of Axis Bank to create a distinguished brand identity. It is worth noting that SBI being the largest among all. We can thus analyze that Public Sector Banks are thus to improve a bit on their mobile banking services if they want to compete at par with the Private Sector Banks.  Axis Bank has also recently advertised a lot for their ATM services. HDFC Bank.6. be it for network coverage or for worthiness.

it slipped by 4 per cent for credit cards to Rs 62. Downturn in the economy was the major reason for negative trend in credit cards.547 Cr in 2008-09.9 Cr in 2008-09.  PNB ATMs should have a distinguished tagline which can be used to create a different brand identity. last year many lost their jobs which led to the decline in spending through credit cards 61 .356 Cr. they have literally taken over the market and then came down due to increase in number of debit card usage. Over the last five years though. Also.facility all at one place. During the slowdown. The transactions through debit cards jumped by 42 per cent at Rs 26.  Suggested taglines for PNB ATMs:  ab aapke paise aapke haath mein kabhi bhi. kahi bhi  Hum hamesha saath nibhayenge  aapka dost aapke saath har pal.4 Cr in 2009-10 from 25. banks became cautious in issuing new credit cards to check defaults.418 Cr in the last fiscal from Rs 18. The advertisements of PNB should also convey this dual facility message.har jaga  Suggested taglines for PNB ATMs and Internet Banking (dual facility):  aapki suvidha ke liye hum hai na  hamesha aapka saath nibhayenge  sirf ATM hi nahi pura bank ab aapki muthi mein 12.7 Analysis and Rebranding of PNB Credit Cards: Credit cards have been in India for well over two and half decades.852 Cr from Rs 65. The total number of credit cards went down to 23.

1 Strategies for Rebranding of PNB Credit Cards:  PNB credit Cards should be targetted to the elite group of people who are flamboyant in their spendings. 12. 62 .  In todays times.Total credit cards sold in the market: Credit cards sold 3% 1% 3% 8% ICICI 29% 14% HDFC SBI Citibank PNB Axis bank 16% 26% BOB Standard Chartered ICICI is the clear market leader in this segment with almost 29% of the credit cards sold. Whereas PNB is merely 1% of the whole credit card segments which points out towards necessities for improvement and coming up with more new cards and types so that it attracts more consumers. This segment may not prefer credit card usage.  PNB will have to first build a customer base which is strong enough in upper middle class and upper class segment in order to make a mark in the credit cards segments. 7. PNB has a huge customer base of lower middle class and middle class people.

473 crore from Rs 4. The total number of debit cards increased to 17 Cr in 200910 from 12. given the creditaverse nature of many consumers.932 crore in the corresponding month of the previous fiscal.8 Analysis and Rebranding of PNB Debit Cards: Debit cards are the faster growing card-based payment segment in India.356 Cr.  Suggested slogans for PNB Credit Cards:  because your shopping experience should be care free  your convinience is our priority 12.508 crore from Rs 1.  This will require strong advertising backed up with a strong CRM system. Transactions made through these cards in the country rose to Rs 5. it slipped by 4 per cent for credit cards to Rs 62.547 Cr in 2008-09. debit card payments increased to Rs 2. The major players in the credit cards segment are foreign banks due to the perception that they are more convinient. In April this year. according to the central bank's monthly bulletin.8 Cr in 2008-09. pay now). The facilities and the rates that PNB Credit Cards offer should also be upgraded in order to meet the needs of the time.852 Cr from Rs 65. offer better rates and are acceptable throughout the globe. 63 . Indians are using more of debit cards than credit cards for their banking transactions.  Rebranding PNB Credit Card will be a challenge to this perception.778 crore in the corresponding month last year. the number of debit cards in circulation has also increased by 33 per cent as compared to a fall in credit card circulation by 10 per cent over the previous year. Debit cards made their entry in India late 1998. Due to the nature of the product (buy now.418 Cr in the last fiscal from Rs 18. While the transactions through debit cards jumped by 42 per cent at Rs 26. says the Reserve Bank of India (RBI) data for the year ended 2009-10. In the same period. it has experienced exponential growth.

Total No of Debit Cards sold in the market: Debit cards sold 3% 6% 10% 6% 10% 12% 16% ICICI HDFC SBI Citibank PNB Axis bank 37% BOB Standard Chartered SBI is the clear market leader in this segment with almost 37% of the debit cards sold.8. Whereas PNB is 6% of the whole debit card segments which is better than the credit cards but still has a long way to go inorder to gain some substancial base in the market. the brand loyalty of the bank will increase. These customers are any ways very happy of being associated with PNB.  The website of PNB when advertises about its Debit Cards should have a picture of the actual debit cards it issues. 64 . This will help them in brand recall. If we give them such add-on privileges.1 Strategies for Rebranding PNB Debit Cards:  PNB issues three types of debit cards:  Classic Debit Card  Gold Debit Card  Free issue of PNB Gold debit cards to premium customers who have been associated with PNB for more than 6 years can be an honor for the customers. The advertising that PNB will get by way of word-of-mouth publicity will be additional advantage for PNB. 12.

 Internet  This should be targeted to young professionals who are so busy in their routine that they prefer online shopping rather than physically going in the shops to buy products. They key to everything!!!  Wherever you go we accompany you!!!  Har kisi ko Gold Card nahi milta aap khaas hai  For Debit Cards targeted at women   Kuch kharidne ke liye paiso ki kya zarurat Naya zamana nayi soch 65 .  Suggested slogans for PNB Debit Cards:  Classic Card. especially a house-wife. the best places to advertise will be:  Shopping malls and hypermarkets  This should be targeted to women. A special type of debit cards should be issued which can take care of the needs of a typical woman. Debit Cards are most often used in shopping malls and movie theatres or online booking of tickets. In order to increase its presence in the advertisements.

Also the RBI too has good control over the working of these banks and there for the customers feel a sense of security in investing in these banks. appear to be huge market players and market turners.  Only rebranding a particular product will not help.  The poor has always been PNBs strong customer base and it should leverage upon this factor to increase its strength in this sector. However it is also seen that a good percentage of people also opt for private banks such as ICICI.  Keeping in mind the analysis in this paper we can note that consumers are hardly aware of the PNB Net Banking facilities. These private banks. a good segment of consumers still prefer to bank with PSUs.  The picture of PNB as a bank for the poor should no more be the brand identity of the bank. PNB will have to rebrand its corporate image in the minds of the customers. 66 . This result can be very well explained by the fact that nationalized banks are acquainted with the Government and that ups and downs in business will not affect the existence of the bank. Conclusion and Recommendation:  Even in this techsavy world. bearing in mind the amount of experience they posses in the field of banking.  At the same time PNB should not forget its original grounds on which it has been able to become the second largest nationalised bank in the country.  On a global scale technological innovations have been the main reasons for International banks to become market drivers and leaders. even though living with nationalized banks.  PNB should target the young professionals for all its branding requirements. Here improvement of technology has not yet played over the minds of the people. but the same cannot be said about India. The other parts of India would hardly consider it to be reason in selecting the bank. which have the lion s share. It can be said that only the higher society of the Indian population would consider technological innovations to be very important in terms of deciding the importance of the bank.13.

In mobile banking it has a long way to go. However a huge section of the people knows the importance of an ATM or Credit cards. but the service provision for these products was not found to be up to the mark.  PNB should improve its service proposition to the core so that not even a single customer will have any complaints from the bank. But on the other hand the people who understand the importance of technology recognized the various services that are provided and also mentioned that technology today in India has made banking easier.  To sum up what can be said about PNB is it is still on a growth stage as it is introducing new credit and debit cards (platinum cards) and infant stage for mobile banking services.  Suggested taglines for PNB E-Banking Umbrella:  Your convenience is our priority  We all change for the ones we love  We are BACK and with a BANG!!! 67 . it is developed but needs modification in its services being offered. whereas for internet banking. Till recent times mobile banking and net banking were Greek and Latin to many Indians. Such people would not keep technology in mind to select the bank.

rupeetimes.theeconomictimes. Bibliography: www.banknetindia.in www.google.crminfoline.14.org www.com www.rbi.pnbindia.com Other references include: y Company pamphlets y Interaction with company officials y Branch visit at PNB Thane y Interactions with customers y Dummy customer visit at branches of SBI and ICICI Bank 68 .co.com www.com www.com www.

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