A STUDY OF FINANCIAL SERVICES PROVIDED BY

PNB

A SUMMER TRAINING PROJECT REPORT

Submitted in the partial fulfillment of the requirements
Of the Award of Degree Masters of Business Administration

2015- 2017

Submitted by: Guided by:

Ruby Ms. Taruna Gulati

Bharati Vidyapeeth University

School of Distance Education,

Academic Study Center: BVIMR, New Delhi

An ISO 9001:2008, 14001: 2004 Certified Institute
NAAC Re-Accreditation Grade “A” University

2015– 2017

1
 STUDENT UNDERTAKING

This is to certify that I Ruby had completed the Project titled ”A STUDY

OF FINANCIAL SERVICES PROVIDED BY PNB.” under the
guidance of Ms. Taruna Gulati in the partial fulfillment of the requirement
for the award of degree of  MBA from Bharati Vidyapeeth Deemed
University, SDE, Academic Study Center BVIMR, New Delhi.   This is an
original piece of work and I had neither copied nor submitted it earlier
elsewhere.

2
 Certificate

This is to certify that the project titled “A STUDY OF FINANCIAL SERVICES

PROVIDED BY PNB BANK” is an academic work done by “Ruby” submitted in the
partial fulfillment of the requirement for the award of the Degree of MBA from Bharati
Vidyapeeth Deemed University SDE, Academic Study Center BVIMR, New
Delhi  under my guidance and direction.  To the best of my knowledge and belief the data
and information presented by him in the project has not been submitted earlier.

Ms. Taruna Gulati

Project Guide

3
 Certificate

This is to certify that the Project titled “A STUDY OF FINANCIAL SERVICES

PROVIDED BY PNB.” is an academic work done by “Ruby” submitted in the partial
fulfillment of the requirement for the award of the Degree of “MBA” from “Bharati
Vidyapeeth Deemed University, SDE, Academic Study Center BVIMR, New Delhi.”.  It
has been completed under the guidance of Ms. Taruna Gulati (Project Guide)

Dr. A.R Deshmukh

(Director)

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 ACKNOWLEDGEMENT

If words are considered to be signs of gratitude then let these words convey the very
same, my sincere gratitude to PNB for providing me an opportunity to work with bank
and giving necessary directions on doing this project to the best of my abilities.
Acknowledgement is an individual’s feeling towards many people, who directly or
indirectly stimulated & influenced ones intellectual development in ones student and
professional life.

This formal statement of acknowledgement will hardly meet the ends of justice in the
matter of expression of my sense of gratitude and obligation to all those who helped me
in the completion of this project.

The successful completion of the project would have been far from reality without
mentioning the people who made an indelible impression while making the project. I
would also like to express my gratitude to Dr. A.R Deshmukh Director, BVUSDE,
New Delhi for providing all needful facilities in the campus and the best faculty for the
students.

All the very outset thanks to Ms. Taruna Gulati for instructing me and providing me the
opportunity to participate in the project and sharing her invaluable knowledge and
experience with me. Her innovative ideas provided me clarity of thoughts which helped
me to think in the right way. Despite their busy schedule they spared valuable moments
for reviewing and rectifying this project work.

Due to the proper guidance the making of project report became an enjoyable experience
and easy to workout.

5
 PREFACE

Training is the act of increasing the knowledge and skills of an employee for performing

a job. The major outcome of training is learning. A trainee learns new habits, refined

skills and useful knowledge during the training that helps him improve performance. It is

designed in such a way that student can grasp maximum knowledge and can get practical

exposure to the corporate world in minimum possible time. Business schools of today

realize the importance of practical knowledge over the theoretical base. The Project

report is necessary as it provides an opportunity to the researcher in understanding the

industry with special emphasis on the development of skills in analyzing and interpreting

practical problems through the application of management theories and techniques. It is a

new platform of learning through practical experience. This project report covers all the

benefits strategies methods which have been adopted by the organization to increase and

enhance the performance of employees. The main emphasis of this Project report was to

develop awareness about the industry, so that we can understand its process, procedure,

working conditions and its prospects.

6
PUNJAB NATIONAL BANK

7
 TABLE OF CONTENT
CONTENT PAGE NO.

CHAPTER 1 - INTRODUCTION (9-23)

1.1 About the Company

1.2 Environmental Scanning
1.3 Porters five forces model of competition –Michael Porter

CHAPTER 2 - RESEARCH METHODOLOGY (24-30)

2.1 Statement of the Problem

2.2 Objectives & Scope of Study
2.3 Managerial usefulness of study
2.4 Type of Research and research Design
2.5 Data Collection Methods
2.6 Limitations of Study

CHAPTER 3 – CONCEPTUAL DISCUSSION (31-42)

3.1 Review of Literature

3.2 Current Issues
3.3 History and Development of Company and Industry
3.4 New Development of Company and Industry

CHAPTER 4 – DATA ANALYSIS (43-56)

4.1 Methods and techniques of data analysis

4.2 Primary Data Analysis
4.3 Secondary Data Analysis

CHAPTER 5 – FINDINGS AND RECOMMENDATIONS (57)

CHAPTER 6 - CONCLUSION AND SUGGESTIONS (58)

BIBLIOGRAPHY (59-60)

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 CHAPTER -1

INTRODUCTION

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1.1 About the Company

Without a sound and effective banking system in India it cannot have a healthy economy.
The banking system of India should not only be hassle free but it should be able to meet
new challenges posed by the technology and any other external and internal factors. For
the past three decades India's banking system has several outstanding achievements to its
credit. The most striking is its extensive reach. It is no longer confined to only
metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even
to the remote corners of the country. This is one of the main reasons of India's growth
process. The government's regular policy for Indian bank since 1969 has paid rich
dividends with the nationalization of 14 major private banks of India. Not long ago, an
account holder had to wait for hours at the bank counters for getting a draft or for
withdrawing his own money. Today, he has a choice. Gone are days when the most
efficient bank transferred money from one branch to other in two days. Now it is simple
as instant messaging or dial a pizza. Money has become the order of the day. The first
bank in India, though conservative, was established in 1786. From 1786 till today, the
journey of Indian Banking System can be segregated into three distinct phases.

They are as mentioned below :-

 Early phase from 1786 to 1969 of Indian Banks

 Nationalization of Indian Banks and up to 1991 prior to Indian banking sector

Reforms.

 New phase of Indian Banking System with the advent of Indian Financial &
Banking Sector Reforms after 1991.

With the growth in the Indian economy expected to be strong for quite some time
especially in its services sector, the demand for banking services-especially retail
banking, mortgages and investment services are expected to be strong. M & As,
takeovers, asset sales and much more action (as it is unraveling in China) will happen on
this front in India.

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Currently, India has 88 scheduled commercial banks (SCBs) - 28 public sector banks
(that is with the Government of India holding a stake), 29 private banks (these do not
have government stake; they may be publicly listed and traded on stock exchanges) and
31 foreign banks. They have a combined network of over 53,000 branches and 17,000
ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks
hold over 75 percent of total assets of the banking industry, with the private and foreign
banks.

Company Visions and Mission

VISION
"To be a Leading Global Bank with Pan India footprints and become a household brand in the Indo-Gangetic
Plains providing entire range of financial products and services under one roof"
MISSION
"Banking for the unbanked"
OBJECTIVES

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 To effectively meet customers' requirements and endeavor to achieve total
customer satisfaction.

 To gain consistent faith and confidence of customers and potential customers

regarding the quality of services rendered.

 To pursue excellence through continuous improvement in all areas and to

distinguish ourselves by the quality of our services.

 To achieve operational efficiency by attaining better productivity and profitability.

 To work and act in such a manner that all services rendered in due course of
banking lead to excellence and improved credibility and image of the Bank.

FUNCTIONS

With its presence virtually in all the important centres of the country, Punjab National
Bank offers a wide variety of banking services which include corporate and personal
banking, industrial finance, agricultural finance, financing of trade and international
banking. Among the clients of the Bank are Indian conglomerates, medium and small
industrial units, exporters, non-resident Indians and multinational companies. The large
presence and vast resource base have helped the Bank to build strong links with trade and
industry.

Punjab National Bank is serving over 3.5 crore customers through 4540 Offices including
421 extension counters - largest amongst Nationalized Banks.At the same time, the bank
has been conscious of its social responsibilities by financing agriculture and allied
activities and small scale industries (SSI). Considering the importance of small scale
industries bank has established 31 specialised branches to finance exclusively such
industries.

Keeping in tune with changing times and to provide its customers more efficient and
speedy service, the Bank has taken major initiative in the field of computerization. All the
Branches of the Bank have been computerized. The Bank has also launched aggressively

12
the concept of "Any Time, Any Where banking" through the introduction of Centralized
Banking Solution (CBS).

India’s Largest Nationalized Bank

218 banks in the Indian Banking System Among the Nationalised Banks

70-80% of the
Deposits, Advances,
Total Assets and
Total Income of the
Banking Sector

Largest Highest
Asset Base CASA

Largest
Branch
Network

Overtime the share of the Public Sector banks in total business of banking
system has eroded from more than 93% in 1993 to about 76% in 2007.
However PNB has been able to maintain its share in the total business of
banking system at around 5.5 - 6% during the same period.

PNB a frontline banking institution

PNB also offers Internet Banking services in the country for Corporate as well as
individuals. Internet Banking services are available through all Branches of the Bank
networked under CBS.
Another step taken by PNB in meeting the changing aspirations of its clientele is the
launch of its Debit card, which is also an ATM card. It enables the card holder to buy
goods and services at over 99270 merchant establishments across the country. Besides,
the card can be used to withdraw cash at more than 25000 ATMs, where the 'Maestro'
logo is displayed, apart from the PNB's over 1094 ATMs and tie up arrangements with
other Banks.
PRODUCTS AND SERVICES

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With technology emerging as the key driver of business growth, the bank has taken
number of IT initiatives to provide its large clientele spread all across the country with
the best technology while retaining the all essential human warmth. All the Branches of
the Bank have been computerized. The Bank has also launched aggressively the concept
of "Any Time, Any Where banking" through the introduction of Centralized Banking
Solution (CBS) and over 2000 offices have already been brought under its ambit. Its Core
Banking Software already acts as a single data bank, a backbone to its branches.
Merchant Banking

Under the Merchant Banking Portfolio, the Bank is acting as Bankers to Issues,
Trusteeship and Underwriting for which it is registered with the Securities and Exchange
Board of India (SEBI).

Foreign Exchange Business

The Bank through its network of 103 Authorized Branches, 43 Special Export Promotion
Branches and 40 Limited Authorization Branches, has been catering to Foreign Exchange
Business requirements of its customers.

Non- Resident Deposits

Non- Resident Deposits of the Bank consist of Non- Resident Non-Repatriable (NRNR)
deposits, Foreign Currency Non-Resident (FCNR) Deposits, Non- Resident External
(NRE) Accounts, Non-Resident Special Resident (NRSR) Accounts, Non-Resident
Ordinary (NRO) Accounts.

Correspondent Relations

The Bank has a strong network of 204 correspondent banks spread over 81 countries.
Rupee Drawing Arrangements have been put in place with M/s. UAE Exchange Centre,
UAE; Qatar to help Indian expatriated in these countries to remit funds to India.

Overseas Operations

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The Bank has equity participation to the extent of 20% in Everest Bank Ltd. (EBL),
Kathmandu, Nepal. The Bank is providing technical and other management services to
EBL by deputing the Bank’s personnel.

Dealing Rooms

The Bank has integrated Rupee and Forex desks of the treasury and centralized inter-
bank forex desk at the corporate office.

Gold Business

PNB commenced its Gold Business in the form of Gold Import Scheme in September
2000. The scheme offers international quality gold for sale to the Bank’s clientele
consisting of exporters and others at competitive prices.

Credit Card Business

The Bank entered the credit card business in association with HSBC and launched the
PNB International Credit Card on November 24, 2000 under the MasterCard and Visa
franchisee.

Insurance Business

PNB has decided to enter into insurance business by participating in the insurance Joint
Venture ("JV") with Zurich Financial Services, Switzerland, DCM Shriram Consolidated
Limited and Vijaya Bank as partners.

Centralised Banking Solution

The proposed Centralised Banking Solution will cover around 1500-2000 branches in 10-
12 clusters covering Bank’s Major business centers including top 100 banking centers in
the country. The Centralised Banking Solution will take about 2-3 years for full
implementation.

ORGANIZATIONAL STRUCTURE

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Bank has its corporate office at New Delhi and 25 zonal offices which in turn supervise
48 regional offices under which the branches function. The delegation of powers is
decentralized up to the branch level to facilitate quick decision-making.

Organizational Structure
Head Office

Zonal Offices (25)

Regional Offices (48)

Branches (4056)

SWOT ANALYSIS

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Business firms undertake SWOT analysis to understand the external and internal
environment. SWOT, which is the acronym for Strength, Weakness, Opportunities and
Threats, is also known as WOT-UP Analysis. Through such an analysis strength and
weakness existing within an organization can be matched with the opportunities and
threats operating the environment so that an effective strategy can be formulated. An
effective organization strategy, therefore, is one that is capitalized on the opportunities
and through the use of strengths and neutralizes the threats maximizing the impact of
weakness.

Strengths:
 Well Reputed Bank

 Expanding into New Location

 Well-Covered Market in Delhi

 Competitive Products

 Relatively New Team

 Appraisal techniques are used.

Weaknesses:

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  PNB Bank, ICICI Bank, SBI Bank and Citibank dominate players in the Market

 Fewer locations as compared with PNB and ICICI Bank

 Service delivery / Logistics perception is weak

 Negative Environment

 High interest rate as compared to others housing finance institution.

 Top management takes large amount of time to approve high value loan
borrowers.

Opportunities:
 PNB can offer a complete relationship

 Advantage of large network over other bank’s

 Opportunity to pitch in for National and International convenience

 Special rates of interest are offered during exhibitions.

 Product life cycle is to be reviewed.

Threats:
 People looking for change (?)

 The competition in market is very high due to the private players.

 The rates of interest of other players are quite low.

 Innovative schemes from other players.

1.2 Environmental Scanning

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To clearly foresee the future of PNB, we have to examine the Political, Economical,
Socio-Cultural and Technological environments issues that influence the company. The
PEST analysis is useful in this regard to understand market growth, business position,
potential growth. In the following analysis we will summarize company’s present
position in the market and the external environmental dynamics in which it operates.

Political Factors
• Government policies and regulations keeps on changing, Exercising prudence, PNB
follows all policies and changes in the banking industry & also helping in the overall
development of industry.

• This sector continues to operate in a challenging economic environment.

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Economical Factors
• PNB initiative considered poverty, farming and rural livelihoods as interconnected
issues. 
• PNB helps to resolve customers queries & issues timely with effective results.

Social Factors
PNB is engaged in a number of other CSR initiatives in the economic surrounding area–
• There is a growing public concern regarding financial issues relating to rise in interest
rates and other policies.

Technological Factors
• The PNB Bank is considered by many as an example of best practice in banking
industry.

1.3 Porters five forces model of competition – Michael Porter

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Banking is mainly a client oriented business. A high-quality of services to the client is
crucial for the growth and stability of any bank. A wider distribution and access of
financial services helps both consumers and producers to raise their welfare and
productivity. Such access is especially powerful for the poor as it provides them
opportunities to build savings, make investments, avail credit, and more important, insure
themselves against income shocks and emergencies.

Bargaining Power of Buyers

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High bargaining power of customer’s on account of banks renders uniform services to the
clients. Now a day’s almost all banks would like to
provide requisite information very easily by way to Internet, Mobile banking to the
clients. If the bargaining power of customers is high, they influence the profitability of
the market by imposing their requirements in terms of price, service, quality, Choosing
clients is crucial because a firm should avoid to be in a situation of dependence. The level
of concentration of customers gives them more or less power. Generally their bargaining
power tends to be inversely proportional to that of the suppliers.

Bargaining power of Supplier

Low bargaining power of supplier’s on account of RBI regulatory benchmarks. Banks

have to meet numerous regulatory standards created by RBI.
The bargaining power of suppliers is very important in a market. Powerful suppliers can
impose their conditions in terms of price, quality and quantity. On the other hand if there
are a lot of suppliers their influence is weaker. One has to analyze the number of realized
orders, the cost of changing the supplier, the presence of raw materials.

Competitive Rivalry

High competition of account of number of prominent public, private, foreign along with
cooperative banks. The competition between firms determines the attractiveness of a
sector. Companies are struggling to maintain their power. The competition changes based
on sector development, diversity and the existence of barriers to enter. In addition it is an
analysis of the number of competitors, products, brands, strengths and weaknesses,
strategies, market shares.

Threats of Substitutes Products

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High menace from substitutes like NBFC’s, Mutual funds, Government securities and
T-bills.The substitute products can be considered as an alternative compared to supply
on the market. These products are due to changes in the state of technology or to the
innovation. The companies see their products be replaced by different products. These
products often have a better price/quality report and come from sectors with higher
profits. These substitute products can be dangerous and the company should anticipate to
cope with this threat.

Threat of New Entrants

Low threat of new entrants on account of banking regulations. Before setting up of a new
bank, it is essential to take the consent of RBI.
It is in a company’s interest to create barriers to prevent its competitors to enter to
market. They are either new companies, or companies which intend to diversify. This
barriers can be legal (patent regulations) or industrial (products or single brands).
The arrival of new entrants also depends on the size of the market (economy of scale)
The reputation of a company already installed, the cost of entry, access to raw materials,
technical standards, cultural barriers.

CHAPTER -2

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 RESEARCH METHODOLOGY

2.1 Statement of problem

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To study the analysis of services provided by Punjab national bank.

 To know the type of bank account preferred by people.

 To know about the experience of customers by the current bankers

 To know all the factors influencing choice of banking.

 The Appraisal also signifies the present state of affairs of industry, demand & supply,
marketing scenario, Regulatory requirements as well as national & International
state of affairs of that particular product/ industry.

 The Appraisal also signifies a proper format in which any credit & project appraisal
to be placed before the final decision takers.

2.2 Objectives & Scope of Study

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This project is a compilation of the work that is taken up by a financial Institution while
financing an industrial project.

Objectives
 Familiarization with the services provided by PNB.

 To know the problem which people are facing from these services.

 To know about the experience of customers by the current bankers.

 To know all the factors influencing choice of banking.

 To check the awareness about ATM AND Internet banking facility.

 To study the features of modern banking which will give a good idea of various
services offered by today’s bank and understand the latest banking concepts.

Scope of Study

 To analyze the level of satisfaction of the customer in respect to the services.

 Scope of the study is to collect information regarding the account opening

and ATM facility provided by the bank

 To know how many people prefer banking with the bank.

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2.3 Managerial usefulness of study

 To study Impact on increase in level of savings and income distribution in society and
standard of living. 

 The study provides a complete knowledge of various fundamental concept related to

services provided by the bank.

 The study helps in finding the weaknesses, if any in the services and the steps taken
to avoid them.

 The suggestions to the Branch Managers will help management to make changes in
the desired field.

 This project will help the managers to decide on marketing strategy and to find
out the gaps in the product development.
This project will enable the managers to introduce new product development.

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2.4 Type of research and research Design

The names of the three types of research design describe their purpose very well. The
goal of exploratory research is to discover ideas and insights. Descriptive research is
usually concerned with describing a population with respect to important variables.
Causal research is used to establish cause-and-effect relationships between variables.
Experiments are commonly used in causal research designs because they are best suited
to determine causeand effect.

Exploratory Research
Design in which the major emphasis is on gaining ideas and in sights.

Descriptive Research
Research design in which the major emphasis is on determining the frequency with which
something occurs or the extent to which two variables covary.

Causal Research
Research design in which the major emphasis is on determining cause-and-effect
relationships.

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2.5 Data Collection Methods

Qualitative researchers typically rely on four methods for gathering

information:
(a) participating in the setting,
(b) observing directly,
(c) interviewing in depth, and
(d) analyzing documents and material culture.

These form the core of their inquiry—the staples of the diet. Several secondary and
specialized methods of data collection supplement them. This chapter provides a brief
discussion of the primary and the secondary methods to be considered in designing a
qualitative study.

This discussion does not replace the many excellent, detailed references on data
collection (we refer to several at the end of this chapter). Its purpose is to guide the
proposal writer in stipulating the methods of choice for his study and in describing for the
reader how the data will inform his research questions. How the researcher plans to use
these methods, however, depends on several considerations.

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2.6 Limitations of Study

As said a basic research was conducted at the bank to assess how far that
customers are satisfied with products and services of Punjab National Bank,
Delhi. The data id collected form Delhi/NCR. This study was limited in Delhi/NCR. This
may be only applicable in North India.

During the course of the study the following limitation were observed:

 The method will be unsuitable if the number of people to be surveyed is very less as it
will be difficult to draw logical conclusions regarding the satisfaction level of
customers.

 Interpretation of data may vary from individual depending on the individual

understanding of the product features and services of the bank.

 The method lacks flexibility. In case of inadequate or incomplete information the

results may deviate.

 Since all the financial products and services are not widely used by all the customers
it is difficult to draw realistic conclusions based on the survey.

 It is very difficult to check the accuracy of the information provided.

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 CHAPTER -3

CONCEPTUAL DISCUSSION

31
3.1 Review of Literature

Banking Industry At a Glance

The Indian Banking industry, which is governed by the Banking Regulation Act of India,
1949 can be broadly classified into two major categories, non-scheduled banks and
scheduled banks. Scheduled banks comprise commercial banks and the co-operative
banks. In terms of ownership, commercial banks can be further grouped into nationalized
banks, the State Bank of India and its group banks, regional rural banks and private sector
banks (the old/ new domestic and foreign). These banks have over 67,000 branches
spread across the country.

The first phase of financial reforms resulted in the nationalization of 14 major banks in
1969 and resulted in a shift from Class banking to Mass banking. This in turn resulted in
a significant growth in the geographical coverage of banks. Every bank had to earmark a
minimum percentage of their loan portfolio to sectors identified as “priority sectors”. The
manufacturing sector also grew during the 1970s in protected environs and the banking
sector was a critical source. The next wave of reforms saw the nationalization of 6 more
commercial banks in 1980. Since then the number of scheduled commercial banks
increased four-fold and the number of bank branches increased eight-fold.

After the second phase of financial sector reforms and liberalization of the sector in the
early nineties, the Public Sector Banks (PSB) s found it extremely difficult to compete
with the new private sector banks and the foreign banks. The new private sector banks
first made their appearance after the guidelines permitting them were issued in January
1993. Eight new private sector banks are presently in operation. These banks due to their
late start have access to state-of-the-art technology, which in turn helps them to save on
manpower costs and provide better services.

During the year 2000, the State Bank Of India (SBI) and its 7 associates accounted for a
25 percent share in deposits and 28.1 percent share in credit. The 20 nationalized banks

32
accounted for 53.2 percent of the deposits and 47.5 percent of credit during the same
period. The share of foreign banks (numbering 42), regional rural banks and other
scheduled commercial banks accounted for 5.7 percent, 3.9 percent and 12.2 percent
respectively in deposits and 8.41 percent, 3.14 percent and 12.85 percent respectively in
credit during the year 2000.

The industry is currently in a transition phase. On the one hand, the PSBs, which are the
mainstay of the Indian Banking system are in the process of shedding their flab in terms
of excessive manpower, excessive non Performing Assets (Npas) and excessive
governmental equity, while on the other hand the private sector banks are consolidating
themselves through mergers and acquisitions.

Private sector Banks have pioneered internet banking, phone banking, anywhere banking,
mobile banking, debit cards, Automatic Teller Machines (ATMs) and combined various
other services and integrated them into the mainstream banking arena, while the PSBs are
still grappling with disgruntled employees in the aftermath of successful VRS schemes.
Also, following India’s commitment to the W To agreement in respect of the services
sector, foreign banks, including both new and the existing ones, have been permitted to
open up to 12 branches a year with effect from 1998-99 as against the earlier stipulation
of 8 branches.

Meanwhile the economic and corporate sector slowdown has led to an increasing number
of banks focusing on the retail segment. Many of them are also entering the new vistas of
Insurance. Banks with their phenomenal reach and a regular interface with the retail
investor are the best placed to enter into the insurance sector. Banks in India have been
allowed to provide fee-based insurance services without risk participation, invest in an
insurance company for providing infrastructure and services support and set up of a
separate joint-venture insurance company with risk participation.

33
3.2 Current Issues

INTRODUCTION OF ATM

An automated teller machine (ATM) is a computerized telecommunications device that

provides the customers of a financial institution with access to financial transactions in a
public space without the need for a human clerk or bank teller. On most modern ATMs,
the customer is identified by inserting a plastic ATM card with a magnetic stripe or a
plastic smartcard with a chip, that contains a unique card number and some security
information, such as an expiration date or CVC (CVV). Security is provided by the
customer entering a personal identification number (PIN). They are sometimes
incorrectly referred to as "ATM machines", a technically redundant term.

Using an ATM, customers can access their bank accounts in order to make cash
withdrawals (or credit card cash advances) and check their account balances as well as
purchasing mobile cell phone prepaid credit. ATMs are known by various casual terms
including automated banking machine, money machine, bank machine, cash machine,
hole-in-the-wall, cashpoint, Bancomat (in various countries in Europe and Russia),
Multibanco (after a registered trade mark, in Portugal), and Any Time Money (in India).

ATMs first came into wide UK use in 1973; the IBM 2984 was designed at the request of
Lloyds Bank. The 2984 CIT (Cash Issuing Terminal) was the first true Cashpoint, similar
in function to today's machines; Cashpoint is still a registered trademark of Lloyds TSB
in the U.K. All were online and issued a variable amount which was immediately
deducted from the account. A small number of 2984s were supplied to a USA bank.

34
Notable historical models of ATMs include the IBM 3624 and 473x series, Diebold 10xx
and TABS 9000 series, and NCR 5xxx series.

Punjab National Bank is in the process of creating a large network of ATMs in partnership
with individuals / organisatons willing to provide prominent space, install ATMs; take
active interest in increasing number of transactions on these ATMs and also to take care of
ATM maintenance besides development, upkeep and security of the site. The scheme is
based on Revenue Sharing model. The entity deploying ATMs hereinafter called
“Participant” shall get revenue on per transactions basis as defined in REVENUE’ clause.

CURRENT SCENARIO
Currently (2008), overall, banking in India is considered as fairly mature in terms of
supply, product range and reach-even though reach in rural India still remains a challenge
for the private sector and foreign banks. Even in terms of quality of assets and capital
adequacy, Indian banks are considered to have clean, strong and transparent balance
sheets-as compared to other banks in comparable economies in its region. The Reserve
Bank of India is an autonomous body, with minimal pressure from the government. The
stated policy of the Bank on the Indian Rupee is to manage volatility-without any stated
exchange rate-and this has mostly been true.
Recently (March 2007), the Reserve Bank of India allowed Warburg Pincus to increase
its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an
investor has been allowed to hold more than 5% in a private sector bank since the RBI
announced norms in 2005 that any stake exceeding 5% in the private sector banks would
need to be vetted by them.
Currently, India has 88 scheduled commercial banks (SCBs) - 28 public sector banks
(that is with the Government of India holding a stake), 29 private banks (these do not
have government stake; they may be publicly listed and traded on stock exchanges) and
31 foreign banks. They have a combined network of over 53,000 branches and 17,000
ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks
hold over 75 percent of total assets of the banking industry, with the private and foreign
banks .

35
3.3 History and Development of Company and Industry

Punjab National Bank with 112 year tradition of sound and prudent banking is one among
300 global companies and seven Indian companies which are expected to emerge as
challengers to World’s leading blue chip companies. While among top 1000 world banks,
“The Banker”, the leading magazine in London, has placed PNB at the 248th position,
the bank features at 1308th position among Forbe’s Global 2000 list of global giants and
fast growing companies.

At the same time, the bank has been conscious of its social responsibilities by financing
agriculture and allied activities and small scale industries (SSI). Considering the
importance of small scale industries bank has established 31 specialised branches to
finance exclusively such industries.

Strong correspondent banking relationship which Punjab National Bank maintains with
over 200 leading international banks all over the world enhances its capabilities to handle
transactions world-wide. Besides, bank has Rupee Drawing Arrangements with 15
exchange companies in the Gulf and one in Singapore. Bank is a member of the SWIFT
and over 150 branches of the bank are connected through its computer-based terminal at
Mumbai. With its state-of-art dealing rooms and well-trained dealers, the bank offers
efficient forex dealing operations in India.

The bank has been focussing on expanding its operations outside India and has identified
some of the emerging economies which offer large business potential. Bank has set up
representative offices at Almaty: Kazakhistan, Shanghai: China and in London. Besides,
Bank has opened a full fledged Branch in Kabul, Afghanistan.

36
Heritage

Established in 1895 at Lahore, undivided India, Punjab National Bank (PNB) has the
distinction of being the first Indian bank to have been started solely with Indian capital.
The bank was nationalized in July 1969 along with 13 other banks. From its modest
beginning, the bank has grown in size and stature to become a front-line banking
institution in India at present.

 A professionally managed bank with a successful track record of over 110 years.
 Largest branch network in India - 4525 branches and 447 Extension Counters spread
throughout the country.
 Strategic business area covers the large Indo-Gangetic belt and the metropolitan
centers.

 Ranked as 244th biggest bank in the world by Bankers Almanac , London.

 Strong correspondent banking relationships with more than 217 international banks of
the world.

 More than 50 renowned international banks maintain their Rupee Accounts with
PNB.

 Well equipped dealing rooms; 20 different foreign currency accounts are maintained
at major centers all over the globe.

 Rupee drawing arrangements with M/s UAE Exchange Center, UAE, M/s Al Fardan
Exchange Co. Doha, Qatar, M/s Bahrain Exchange Co, Kuwait, M/s Bahrain
Finance Co, Bahrain, M/s Thomas Cook Al Rostamani Exchange Co. Dubai, UAE,
and M/s Musandam Exchange, Ruwi, Sultanate of Oman.

VARIOUS RECOGNITIONS RECEIVED BY PNB

37
Punjab National Bank has been ranked 38th amongst top 500 companies by The
Economic Times. PNB's attempts at providing best customer service has earned it 9th
place among India’s Most Trusted top 50 service brands in Economic Times- A.C
Nielson Survey.
Punjab National Bank has been ranked at 368 th position amongst the top 1000 global
banks by the prestigious international publication “The Banker”, London.
Punjab National Bank India maintains relationship with more than 200 leading
international banks worldwide. PNB India has Rupee Drawing Arrangements with 15
exchange companies in UAE and 1 in Singapore.
ith its state-of-art dealing rooms and well-trained dealers, the bank offers efficient forex
dealing operations in India.
At the same time, the bank has been conscious of its social responsibilities by financing
agriculture and allied activities and small-scale industries (SSI). Considering the
importance of small-scale industries bank has established 31 specialised branches to
finance exclusively such industries.

Awards

3.4 New Development of Company and Industry

38
PNB INTRODUCES ADD-ON DEBIT CARD :-
Share the convenience of PNB Debit card with your loved ones .Simply gift them add-on
card.

PNB Customers of CBS branches can get two add-on cards along-with his own Debit
card. The person you are gifting the card to does not necessarily have to be an account
holder with PNB.

The add-on card can be issued in the name of spouse, dependent parents, and dependent
children not below 18 years.

The transactions done by add-on cardholders will automatically get debited to the account
of the primary cardholder who shall be responsible for all the transactions made by Add
On card holder/s.

Charges related to Issue of ATM/Debit Cards

Sr. No. Particulars of Charges Charges

1 ATM/ Debit Card issue charges Waived

2 ATM/ Debit Card annual fee (after first year) Rs.100/-

3 Charges for issue of Add on card Rs.50/-

Charges for issue of duplicate PIN (However, if

the card has not been used even once due to error
4 Rs.25/-
in (printing of PIN, issue of duplicate PIN shall be
free)

Charges for issue of duplicate ATM/Debit card/

5 Rs.100/-
Replacement of ATM/Debit card

Issue of ATM/Debit card with photograph of the

6 Rs.25/-
cardholder
*NOTE: In case customer do not want to use the debit card (after issuance) due to
non-acceptance of charges and get the card cancelled no charges will be levied.
PNB DEBIT CARD :-   The PNB Debit Card is essentially an on-line product. It bears
the Master logo on the front and is accepted in India and all over the world at all

39
MasterCard enabled ATMs and Merchant Establishments with POS machines having a
tie up with MasterCard and also over the internet for ecommerce transactions.

PNB-ONLINE
Punjab National Bank of India is also a member of SWIFT and more than 150 PNB
Branches are connected with terminals in Mumbai. It promotes "Any Time, Any Where
Banking".
PNB offers Internet Banking services for both to the Corporate and Individuals. It
provides 24 hours, 365 days banking from the PC of the user. A user can operate anytime
and from anywhere its accounts. The following are some of the services available online:
 Access to account

 Complete details of transactions and statement of account

 Online information of deposits, loans overdraft account etc.

 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, mobile, electricity, insurance and other bills anytime from
anywhere from their desktop.

CHAPTER - 4

40
 DATA ANALYSIS

4.1 Methods and techniques of data analysis

41
The study adopted in the project is exploratory that makes use of ample amount of data

to arrive at the conclusions. It does so by paying equal attention to both quantitative as

well as qualitative data. This data is of extreme help as almost all the steps of the study

are dependent on the reliability & accuracy of this data. Care has been taken to; ensure

that these figures are foolproof.

Data used to analysis the services in PNB was of primary and secondary .The primary

data has been collected through questionnaires. The secondary source included brochures,

annual reports, magazines, employee’s handbook, magazines and journals.

DATA SOURCES

Primary Data

It is a fresh data which is collected by the researcher himself. The primary data that I
collected were the first hand information, which I received through personal interviews
with the consumers and through questionnaires. This data gave the most vital information
for making my analysis of the prevailing banking behavior of the consumers

Secondary Data

It is data which is already present in the records and is collected by someone else.
Secondary data involved in my research were the information that I collected through the
Punjab National Bank’s Internet service and through the various brochures and pamphlets
of the bank.

Questionnaire Design

42
Questionnaires are one of the most important and commonly used research instruments to
collect primary data.

It is self-administered process whereby the respondent himself reads the questions and
records his answers without the assistance of an interviewer

Multiple choice questions were asked from the interviewer as it consumes less time and
gives us the exact answers. The main objective of choosing such question was to extract
the clear picture from the customers like what they actually expect from a good banking
system.

TOOLS:-

 Pie chart

 Bar diagram

 Text and statements

SAMPLE DESIGN

 Sample element: The members selected from the population for doing the
survey constitute the sampling element. A sample of 50 customers was taken as a
sample element.

 Extent: The survey was conducted in the Delhi region only.

 Time frame: Total time duration for the survey took almost two months.

 Sample size: 50 was the sample size of the survey.

4.2 Data analysis

43
Results of the Survey:-
Q.1. Type of Bank’s you are holding saving account with - ?

1. Nationalized / co-operative

2. Private

3. Multinational

Multinational
Type of Bank Account
9%

Private
27%

Nationalized /
co-operative
64%

Figure. 1
 A majority of our sample size people had their bank account with Nationalised
banks. As per the following graph, 2/3rd of people having a long term relationship
with Nationalised banks.

Q.2. How would you rate your experience with your current bankers ?

1. Excellent

44
2. Good

3. Fair

4. Poor

Experience wth Current Bankers

25 Good

20 Excellent
Excellent
15 Good
Noof People

10 Fair Fair
Poor
5 Poor

0
Catagorization

Figure. 2

 All these people having accounts with their current bankers were found to
be satisfied with the existing set up. A majority of them rated their
experience as satisfactory and above

45
Q.3 Which of these factors influenced your decision to open an account with your
current bank ?
1. Facilities provided by the Bank

2. Recommendation by friend / relatives

3. Advertisement

4. Brand

Factors to Open an Account

Facilities provided by the
70% 65% Bank
60% Recommendation by
50% friend / relatives
40% Advertisement
30%
20% 15% Brand
10% 10% 10%
0%

Factors

Figure. 3

 A customer chooses his bank with a fair amount of investigation and research as
his monetary success and behaviour is quite dependent on the bank he is having
and the services to him. A bank serves more than just a money exchange
institution and provides considerable advantages to the customers. With our
survey, what we found out is that customer plays a major focus on the following
aspects this thing is proved by the following graph indicating the needs of the
customer.While over 65% people look out for facilities, the same is a major
aspect while choosing a bank. Today the customer is very aware and looks after
his convenience and benefits rather than any other aspect. He is wiling to spend
for these facilities but convenience plays a major role.

46
Q. 4 Do you presently hold a Debit Card ?

1. Yes

2. No

YES
NO

Figure- 4
 We find that out of 50 customers, 25% of them still not use the Debit Card. Now
we should make the consumers aware of the facilities that they can acquire
through the use of the Debit Card. The Bank should also bring in lucrative offers
along with their debit card, like purchase of cinema tickets with the help of a debit
card, increase in the discount rate from around 10% to around 20% on the
purchases made through a debit card. A consumer will surely be attracted towards
a bank giving these benefits along with there debit card.

47
Q. 5 How do you rate PNB w.r.t other banks ?
1. 25

2. 50

3. 75

4. 100

5. 222

PNB
ICICI
SBI
PNB
CITI BANK

Figure- 5
 From above chart we find that out of 50 consumers, only 22% had there account
with PNB, 25% had it with ICICI, 35% with SBI, 10% with PNB & 8% with CITI
BANK. With the help of the chart we can see the Punjab National Bank have to
go a long way to penetrate into the life style of the consumers. They have to beat
their competitors by providing more services that are given by them, & increase
its services by making its debit card freely usable in any bank’s ATM machine.

48
 Q.6 How important is the banking facilities for you ?

SERVICES NOT IMPORTANT AVERAGE VERY IMPORTANT

A.T.M
PHONE BANKING
LOCKER
FACILITIES
CASH/CHEQUE
PICK UP
INSURANCE
FACILITIES WITH
YOUR ACCOUNT
BANKING HOURS

DISCOUNT IN
RESTAURANT &
SHOPPING MALLS
FREE DRAFT/
PAY ORDER
365 DAYS BRANCH
BANKING

 Services and Customer’s needs

Through the following tabular information, we now look at the needs of the customer and
requirements before coming to the banking and account opening requirement.
People have listed their requirements by marking the relative importance of their needs in
the following table. While services like ATM and Phone banking have been at the top of
the list seeking and catering to customer’s requirement, insurance and Discounts don’t
seem to affect customer much.

SERVICES NOT AVERAGE VERY

IMPORTANT IMPORTANT

49
A.T.M     Y
PHONE BANKING     Y
LOCKER FACILITIES   Y  
CASH/CHEQUE PICK UP   Y  
INSURANCE Y    
FACILITIES WITH YOUR     Y
ACCOUNT
BANKING HOURS     Y
DISCOUNT IN Y    
RESTAURANT & SHOPPING
MALLS
FREE DRAFT/ Y    
PAY ORDER Y    
365 DAYS BRANCH     Y
BANKING

50
Q.7 How long have you been banking with them ?

1. Less than 1 year

2. 1-2 year

3. 3 year and above

3yrs and less than

above 1 yr.
25% 20%

1-2 yrs.
55%

Figure. 6

 It was observed that out of 50 people, 55% of the sample had their account in
their bank account since 1 or 2 years, 20% hold their account for less than a year
and 25% had their account for 3 years and above duration in their current bank.
So, majority of them had account from last year or two.

51
Q. 8 Does your bank charges you on the transaction that you do on the Debit Card ?
1. Yes

2. No

30
25
20
15
10
5 bank charges; 3 4
1 2
0
bank
charges

Figure- 7
 It was seen that out of 50 samples taken, there were almost 28 samples who said
that their bank charges for the debit card and 22 said that they don’t pay for debit
card.

52
Q .9 How much do you use ATM ?
a) Daily
b) Monthly
c) Weekly

Daily
Monthly
Weekly

Figure. 8

 It had seen that in survey only 10% uses ATM daily ,and 60% uses weekly bases
and 30% uses monthly.

53
Q.10 Would you be interested in opening an account with the Punjab National Bank ?
1. Yes
2. No

Parameters Mar’ Mar’ Mar’ Mar’ Mar’ CAGR Dec’

YoY Dec’
Gr
09 10 11 12 13 (%) 12 13 %
Operating 569 7326 9056 10614 10907 17.70 8056 8211 1.9
Profit
Net Profit 309 3905 4433 4884 4748 11.30 3617 2536 29.9

Deposit 209 2493 3128 37958 39156 16.90 3857 42064 9.0

Advance 154 1866 2421 29377 30872 18.90 297 32613 9.7

Total 364 4359 5550 67336 70028 17.70 6830 74678 9.3
Business

 Punjab National Bank has its Branches in all the 7 metropolitan and cosmopolitan
cities in India namely New Delhi, Mumbai, Calcutta, Chennai, Bangalore,
Hyderabad and Ahmedabad. It even has its branches in small town in both urban
as well as rural areas. PNB is always focusing on expanding abroad and till date
has identified some emerging economies abroad. Punjab National Bank is serving
more than 87 million esteemed customers.

PNB, being one of the largest nationalized banks, has continued to provide
prudent and trustworthy banking services to its customers. The Bank enjoys
strong fundamentals, large franchise value and good brand image. To meet the
growing aspirations of the people and compete in these tough conditions, the
Bank offers wide range of products and services.

54
 CHAPTER -5

FINDINGS AND RECOMMENDATIONS

Punjab National Bank has a great Earning experience for me and in the due course of my
project I found out that the consumers go for the Punjab National Bank for a status
symbol and not merely for baking process. It’s a prestigious issue for the customers that
they hold Punjab National Bank account and so the bank should try and meet its
commitment and keep the faith of the customers.

Punjab National Bank should maintain good relationship with it’s customers like
providing reliable “After Sale” services so that the customers can build their faith in the
bank and bring in more references to join the Punjab National Bank.

 Today facilities like atm, internet banking, phone banking, etc. are really important
and necessary for the customers.

 PNB hold a good proportion of consumers in the market.

 Majority of consumers opt for DEBIT CARD.

 22% of the samples hold their account in the PNB.

 People prefer banking services in deciding of the bank.

55
 CHAPTER -6

CONCLUSIONS AND SUGGESTIONS

Punjab National Bank gave me a great opportunity to explore the banking sector in the
economy. It really does have a lot of positive aspect, which are so lucrative that anybody
would be attracted towards having a deposit with the Bank.
Still I feel that are some areas where Punjab National Bank have to improve upon to have
the complete faith of the consumers. These areas are highlighted as:
 Punjab National Bank seems to have been concentrating more on numbers (the
numbers of deposits) specially saving / current account that they can produce and in
the process the “After Sale” services has lagged behind.

 The sales term has gone far ahead of the customers care unit and so Punjab National
Bank have to do something to improve the services that they provide to the customer.

 The customer satisfaction is not there. Once an account is opened, many a time they
are considered as permanent and the customer services is relaxed. The bank should
remember that a single satisfied customer could be a great help in bringing in new
accounts for the bank by giving reference.

 There are so many PNB’s ATM’s. A customer feels proud in visiting their own banks
ATM. It’s all right that PNB account holder can access their account through other
banks ATM as well, but that appeal of belongingness does not exist when a customer
goes into other banks ATM. The customer feels proud of Punjab National Bank
account, its hottest brand name and they want other people to see them enter into a
Punjab National Bank ATM to access their account and so the management should
try and increase the number of PNB’s own ATM centers, especially in and around
cinema halls like PVR, shopping complexes etc.

 Fixed deposit rates have goes down very much; PNB should create some mechanism
to bring about some kind of stability in the interest rates.

56
 BIBLIOGRAPHY

WEBSITE
 http://www.google.com
 www.wikipedia.com
 www.pnbindia.com
 http://www.answes/pnb.com
 PNB’s brochures.
 https://www.pnbindia.in/En/ui/ATMDebitCard.aspx

 www.scribd.com/doc/21555946/Project-On-Punjab-National-Bank

 https://www.pnbindia.in/En/ui/Awards.aspx

 http://en.wikipedia.org/wiki/Banking_in_India

 www.pnbindia.com

 www.rbi.gov.in

 www.google.com

MAGAZINES / NEWSPAPERS

 Business World
 The Financial Express
 The Times of India
 India today
 Hindustan Times

BOOKS:

57
 Srivastava R.M & Nigam Divya, Jan-Feb (2010) Management Of Indian
Financial Institution 10TH EDITION, Pg (215-225)

 Bhole L.M , , May-June(2009) Financial Institution And Markets

5TH EDITION, 2009, TATA Mc GRAW- HILLS. Pg- (150-159)

 Punjab National Bank Annual Report / PNB Journals / Newspapers.

58