Marketing of Financial Services

Marketing Plan of

Post Graduate Diploma in Management

(Term- V; Batch 2019-2021)

Under the supervision of-

Prof. Sudhir Sharma

Submitted by: (Group 7)

Umang Garg – PGSF1949

Madhu – PGSF1953

Sneha Kongala- PGSF1955

Prachi Katiyar- PGSF1956

Neel Dehury-PGSF1958

Shalini Patel- PGSF1959

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 ACKNOWLEDGEMENT

We express our sincere gratitude to the college management for giving us this opportunity to
work on this project, thereby enriching our knowledge.

We are extremely thankful to Prof. Sudhir Sharma, our professor of Marketing of Financial
Services course for his suggestions and guidance in completing the project. We would also
like to extend our gratitude to the staff of Punjab National Bank, Mr. Ravi Katiyar
(Manager) for addressing us and helping us in successful completion of this project.

We would also like to extend our gratitude to other people who were directly or indirectly
involved in helping us for the completion of this project.

Group: 7

Umang Garg- Pgsf1949

Madhu – Pgsf1953

Sneha Kongala- Pgsf1955

Prachi Katiyar- Pgsf1956

Neel Kamal- Pgsf1958

Shalini Patel- Pgsf1959

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 TABLE OF CONTENT

Abstract....................................................................................4
Banking Industry Overview.....................................................5
Market Size............................................................................5
Punjab National Bank..............................................................6
Mission and Vision..................................................................7
COMPETITORS......................................................................7
Organisation Structure.............................................................8
SWOT Analysis....................................................................8-9
PEST Analysis.........................................................................9
7P’s of PNB........................................................................9-11
STP&USP..............................................................................11
Product...................................................................................12
Challenges(COVID-19).........................................................13
Recent News
Financial Ratio Analysis
Suggestion
Reference

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 ABSTRACT

Financial services and products have a crucial role in the development of economy for any
country and also have a major part of control over the money supply of the country and play a
vital role in modern commerce since 1969. The banks along with their traditional approach
started adopting innovative and progressive functions. Thus, developing and diversifying the
Indian economy.

Keeping the importance of financial services in mind, this study tries to analyse the
marketing measures taken by Punjab National Bank which is one of the popular and trusted
public banks in India. The study focuses on how PNB distinguished itself from other
financial service providers and the strategies adopted by the bank to achieve its customers
attention and loyalty.

With the same perspective, the prime objectives of the study are as follows-

 To analyse various factors that influence the organization’s decision making with the
help of PEST Analysis.
 To know its product and pricing strategies that differentiates it from other banks.
 To understand its promotional tools on the basis of customers reactions by working on
its Promotion and advertising strategies.
 To evaluate its organization structure, distribution strategy, its competitors and the
challenges faced by the bank in the current scenario.

This study is based on the available secondary data from various sources that helped us in
identifying different services offered by PNB and different strategies adopted by the bank to
market its financial services. The study also focused on various financial services offered by
the bank and also identified some of the problems faced by the bank during the current
Covid-19 pandemic and tried to come up with some suggestions accordingly that the bank
can work on to improve its marketing in the pandemic situation.

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 BANKING INDUSTRY OVERVIEW

 As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently
capitalised and well-regulated. The financial and economic conditions in the country
are far superior to any other country in the world. Credit, market and liquidity risk
studies suggest that Indian banks are generally resilient and have withstood the global
downturn well.

 Indian banking industry has recently witnessed the roll out of innovative banking
models like payments and small finance banks. RBI’s new measures may go a long
way in helping the restructuring of the domestic banking industry.

 The digital payments system in India has evolved the most among 25 countries with
India’s Immediate Payment Service (IMPS) being the only system at level five in the
Faster Payments Innovation Index (FPII).

MARKET SIZE OF THE INDUSTRY

 The Indian banking system consists of 12 public sector banks, 22 private sector banks,
46 foreign banks, 56 regional rural banks, 1485 urban cooperative banks and 96,000
rural cooperative banks in addition to cooperative credit institutions. As of July 2020,
the total number of ATMs in India increased to 209,989 and is further expected to
increase to 407,000 by 2021.

 Public sector banks’ assets stood at Rs. 72.59 lakh crore (US$ 1,038.76 billion) in
FY19.

 During FY16-FY20, credit off-take grew at a CAGR of 13.93%. As of FY20, total

credit extended surged to US$ 1,936.29 billion.

 During FY16-FY20, deposits grew at a CAGR of 6.81% and reached US$ 1.90
trillion by FY20. Credit to non-food industries increased 3.3% y-o-y, reaching US$
1.26 trillion on February 28, 2020 and US$ 1.42 trillion on March 13, 2020.

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 PUNJAB NATIONAL BANK

Punjab National Bank, abbreviated as PNB, is a Banking and Financial service bank owned

by the Government of India with its headquarters is in New Delhi, India.
The bank was founded in 1894 and is the second largest public sector bank (PSB) in India,
both in terms of business and its network.
The bank has over 180 million customers, 10,910 branches and 13,000+ ATMs post-merger
with United Bank of India and Oriental Bank of Commerce, effective from 1 April 2020.
PNB has a banking subsidiary in the UK (PNB International Bank, with seven branches in the
UK), as well as branches in Hong Kong, Dubai, China, Norway, Sydney, Bhutan and Nepal.

Traded as
Type:
BSE: 532461
Public
NSE: PNB

Income: ₹336
crore (US$47 million) (2020)  Revenue:
₹80,512
Total assets: ₹830,666
crore (US$11 bil
crore (US$120 billion) (2020)
lion) (2020)
Number of locations: 11,809

Industry:
Founded: 12 April 1894;
Banking, Financi
126 years ago
al services

Headquarters: New Delhi,

India
Founder: Dyal
Owner: Government of
Singh Majithia
India (85.59%)
Lala Lajpat Rai
Number of employees:
1,03,000 (2020)

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 VISION AND MISSION

Mission
"Creating Value for all its customers, Investors and Employees for being the first choice for
all stakeholders"

Vision
"To position PNB as the `Most Preferred Bank` for customers, the `Best Place to Work In`
for employees and a `Benchmark of Excellence` for the industry"

COMPETITORS
Market
Net
Name Cap.
Profit
(Rs. cr.)
SBI 2,45,605.31 14,488.11
PNB 33,947.69 336.2
Bank of
28,832.34 546.18
Baroda
Canara Bank 20,625.40 -2,235.72
Union Bank 19,540.88 -2,897.78
IOB 17,587.58 -8,527.40
Bank of India 16,188.00 -2,956.89
UCO Bank 12,695.48 -2,436.83
Indian Bank 9,989.25 753.36
Bank of Mah 8,725.01 388.58
Central Bank 8,255.17 -1,121.35
Vijaya Bank 6,005.60 727.02
Oriental Bank 5,953.56 54.99
Corporation Bk 5,874.30 -6,332.98
United Bank 4,081.18 -2,315.92
Syndicate
4,065.84 -2,588.30
Bank
Allahabad
3,440.89 -8,333.96
Bank
Dena Bank 2,857.69 -1,923.15
Andhra Bank 2,816.94 -2,786.13

ORGANISATION STRUCTURE

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 MD and CEO (Shri
CH. S.S.
Mallikarjuna Rao)

Board of Directors

Cheif General General Manager Zonal Manager General Manager

Manager (15) Head Office (51) Field (6) Overseas (1)

Circle office and

Branches (161)

SWOT ANALYSIS

Strengths
 Rising Net Cash Flow and Cash from Operating activity
 Strong Annual EPS Growth
 Effectively using its capital to generate profit - RoCE improving in last 2 years
 Effectively using Shareholders fund - Return on equity (ROE) improving since last 2
year
 Efficient in managing Assets to generate Profits - ROA improving since last 2 year
 Growth in Net Profit with increasing Profit Margin (QoQ)
 Increasing Revenue every Quarter for the past 4 Quarters
 Increasing profits every quarter for the past 2 quarters
 Annual Net Profits improving for last 2 years
 Company with Zero Promoter Pledge
 Recent Results: Growth in Operating Profit with increase in operating margins (YoY)

Weakness
 Red Flag: High Interest Payments Compared to Earnings
 MFs decreased their shareholding last quarter
 Red Flag: Downgrade by Credit Rating Agency
 Book Value Per Share deteriorating for last 2 years

Opportunities

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  Big Deal (Insider and SAST) buys last month greater than 1% of total shares
 Big Deal (Insider and SAST) buys last week greater than 1% of total shares
 Positive Breakout First Resistance (LTP > R1) Decrease in Provision in recent results
 Stock with Low PE (PE < = 10)

Threats
 Increase in NPA in Recent Results
 Cut throat competition

PEST ANALYSIS

Political Economic Social Technological

Regulatory Rapid changing Lifestyle change Competent

bodies environment Customer technology
Govt. policies Season and attitude development
International weather issue Media view Global
legislation Interest and Brand image communicaton
exchange rates Advertising and Innovation
publicity potential

7 P’s OF PUNJAB NATIONAL BANK

Product Strategy:
The product strategy and mix in Punjab National Bank marketing strategy can be explained
as follows:
Punjab National Bank is a widely present bank in India, with operations spread in personal,
rural as well as corporate banking. Punjab National Bank offers the following plethora of
products to its customers:
• Personal – Deposit, Loans (Retail, MSME), Insurance, Government Business, Agriculture
Banking, Financial Inclusion, Priority Sector
• Corporate- Corporate Loans, EXIM finance, Cash Management Services, Gold Card
Scheme for Exporters, Doorstep Banking Services
• International - Schemes / Products / Services, NRI Services, Help Desk for Forex Services,
World Travel Card, Foreign Office Details, Offshore Banking Units
• Capital Services- Depository Services, Mutual Funds, Merchant Banking, ASBA
Punjab national Bank also offers e-services like:

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BHIM, PNB Kitty, PNB Yuva, Unified Payments Interface, Retail Internet Banking,
Corporate Internet Banking, RTGS/NEFT/IMPS/ECS/NACH, Mobile Banking, Green PIN -
Debit Card.

Price/Pricing Strategy:
Below is the pricing strategy in Punjab National Bank marketing strategy:
Even though Punjab National Bank is stated owned corporation it faces a strong competition
from the like of State Bank of India, Corporation Bank, Bank of Maharashtra, State Bank of
Mysore, etc. As a major holding in the bank is of the government, the interest rates set by
PNB are comparably lower to private banks, as these private banks only function for profit.
Public banks while pursuing profit have to ensure to be the bank to the masses, promoting
growth in the country. The pricing decision its marketing mix are governed by the RBI
guidelines, competitor offerings and interest rates in the industry.

Place & Distribution Strategy:

Following is the distribution strategy of Punjab National Bank:
Punjab National Bank is present across 764 cities with more than 6888 branches and 9997
ATMs. The figures prove that accessing a Punjab National Bank is very feasible given its
extensive presence across the country.
Punjab National Bank is also present outside India in Hong Kong, Dubai, Kabul, Kowloon,
Shanghai, Sydney, Oslo, etc.

Promotion & Advertising Strategy:

The promotional and advertising strategy in the Punjab National Bank marketing strategy is
as follows:
Punjab National bank has won many awards and accolades. Some of these recent awards are:
 Golden Peacock National Training Award 2016
 FICCI Corporate Social Responsibility Award
 RBI Rajbhasha Award
 Assocham Social Banking Excellence Awards 2015 (Under Rural Banking Category)
Other than these awards, Punjab National Bank also conducts many corporate social
responsibility activities like health check-up camps, plantation drives, donation camps,
setting up of dustbins, sponsoring uniforms, adopting villages, etc. For promotion on
audio/video media, print media and website, Punjab National Bank has partnered with
cricketer Virat Kholi to gauge the attention of youngsters, given his wide following in India.

Since this is a service marketing brand, here are the other three Ps to make it the 7Ps
marketing mix of Punjab National Bank.

People:
Punjab National Bank is a huge organisation which has more than 70,000+ employees. PNB
is known to be employer of 919 employees with disabilities. The human resource
management software package is called PNB Parivar, so as to call the employees a family. It
was launched in 2006, to make pay roll processing, salary payment, tracking employee loans,
etc. transparent. It also serves as dashboard for all internal news and transfer & posting
related queries.

Process:

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Punjab National Bank has grown in a robust manner over the last hundred twenty-two years
in both organic and inorganic way. Seven different banks merged into Punjab National Bank
to make it of the scale that it is now. Some these banks were:
 Bharat Bank Ltd. – 1951
 Universal Bank of India – 1961
 Indo-Commercial Bank – 1962
 New Bank of India – 1993
 Nedungadi Bank – 2003

Physical Evidence:
Punjab National bank infrastructure is still less technology centric as it is a public sector bank
with less investment on customer experience. Public sector enterprises are plagues with
bottlenecks and bureaucracy which hinder superior customer experience. Yet, services of
Punjab National Bank are comparable to that of a private bank in terms of speedy
transactions, wide array of products, extensive network of branches and ATMs. Hence, this
gives an insight in the marketing mix of Punjab National Bank.

STP & USP

Segmentation

Urban and rural banking

Targeting
International and domestic Banking

Positioning

Complete Banking  solutions

USP

Punjab National Bank is one of the Big Four banks of India

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 PRODUCT

Personal

Bal Vikas
Term Deposits
Recurring Deposits
Loans
Fixed Deposit
Debit Card
Credit Card
Current Account
Balika Shiksha

Corporate

Corporate Loans
EXIM finance
Cash Management Services
Gold Card Scheme for Exporters

Agricultural Banking

Credit Schemes
N. B. krishi
Farmers Welfare Central-Sector Schemes

International

LIBOR TRANSITION
FX RETAIL PLATFORM
NRI Services
Help Desk For Forex Services
World Travel Card
Foreign Office Details

Financial Services

Non-life Insurance
Mutual Fund
Merchant Banking
Life Insurance
Retirement Planning-Scheme
Real Estate Investments

Capital Services

Depository Services
Mutual Funds
Merchant Banking

Social Banking

Special Schemes for Women

Online Services

Mobile Banking
Internet banking
Bill Payments
E-Tax Payments
Share Trading
Security Alerts

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 CHALLENGES (COVID-19)

According to the news of the financial express on July 13 th, the bank will accelerate self-
service and automation initiatives through greater focus on technology to foster optimisation
of processes, employee and workplace.
Rao said 2019-20 started with an overarching goal towards 'Year of Profitability and Creating
Value', leaving the adversities of the previous financial year behind.
Punjab National Bank proposes to accelerate self-service and focus on automation with a
view to optimise processes, employees and workplace and thus deal with the challenges
following the outbreak of coronavirus, the lender said in a message to shareholders.
The current crisis will steer the banking industry to remote working which is likely to shape
the cost structure in the days ahead, PNB’s MD and CEO SS Mallikarjuna Rao said in a letter
to shareholders.

RECENT NEWS

The CBI has filed a fresh charge sheet against Gokulnath Shetty, the Punjab National Bank
Deputy Manager who allegedly helped Nirav Modi and Mehul Choksi perpetrate ₹13,000-
crore fraud, and his wife for amassing disproportionate assets worth ₹2.63 crore, officials
said Friday.
After computing investments, income and expenditure, the CBI concluded that Shetty and his
wife allegedly amassed disproportionate assets to the tune of Rs 2.63 crore during 2011-17,
they said.
The CBI has already filed charge sheets against Mr. Modi and Mr. Choksi in which role of
Mr. Shetty, presently in judicial custody, is given, they said.

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 CRM

Punjab National Bank (PNB) has signed a 5-year contact with Mphasis to set up contact
centres in Noida and Mangalore.
Mphasis will offer end-to-end CRM services that include inbound phone banking, outbound
calling and complaints management.
The scope of the services includes support for all banking products and services including
deposits operations, core banking processes, lending services, internet banking, account and
card related services.
Punjab National Bank aims to improve quality of its customer service and enable intelligent
customer engagement through optimal utilisation of data.
The IT company has implemented Interactive Voice Response (IVR) system and a
comprehensive CRM solution Advisor 360 which will cater to the bank’s customers,
branches and fulfilment requirements across 13 regional circles in India.

The services are made available in multiple languages (English, Hindi, Malayalam, Kannada,
Tamil and Telugu) through Mphasis’s centres in north and south.

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 FINANCIAL RATIO ANALYSIS

Punjab National Bank

Financial Ratio (in ₹)
(in
Years Mar-20 Mar-19 Mar-18 Mar-17 Mar-16
crores)
Per Share Ratio
Basic EPS (Rs.) 0.62 -30.94 -55.39 6.45 -20.82
Dividend/Share
(Rs.) 0 0 0 0 0
Per Employee Ratio
Interest Income/ 78,21,932.4 64,08,236.1
Employee (Rs.) 7 72,46,186.98 5 63,95,648.26 66,98,259.90
-
Net Profit/ - 16,39,961.5
Employee (Rs.) 48,878.96 14,08,768.54 7 1,79,223.45 -5,61,347.44
Profitability Ratios
ROCE (%) 1.8 1.7 1.38 2.06 1.87
CASA (%) 42.97 42.16 40.98 41.82 37.17
Net Profit Margin
(%) 0.62 -19.44 -25.59 2.8 -8.38
Return on Assets
(%) 0.04 -1.28 -1.6 0.18 -0.59
Return on Equity /
Net worth (%) 0.58 -24.2 -32.85 3.47 -11.2

Interpretation

After analysing all the ratios below, we can come to a conclusion that the financial position
of Punjab National Bank is decent.
The profits of the bank are positive, the profitability is good, the efficiency is decent and the
margins are satisfactory.
Since everything in banking industry is depended upon trust and financials are major sources
of reflecting the bank's image, it is very important for any bank to keep good care of their
financials.
We can observe that it’s overall per employee ratios are very high which is a good sign as it
means employees are very efficient. It is able to generate decent returns and the graph is
progressive in nature which is a positive thing for a bank.
But the ratios that reflect shareholder’s interest are not that good. The bank hasn’t paid
dividend in last 5 year. This can distract shareholders and therefore, they need to look upon it
too.

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 Ratio Analysis

 We may come to the conclusion that the financial status of the Punjab National Bank
is good after evaluating all the above ratios.

 PNB current and liquid asset is sufficient to meet the current liabilities of the bank
which shows satisfactory liquidity position.

 PNB sharp fall in NPA due to the improvement in asset quality has majorly been due
to recoveries and higher write-offs by the multiple banks. Net NPAs declined to 5.39
per cent as against 7.17 per cent earlier.

 Showing net profit of Rs 336 crore in FY20 as against a net loss of Rs 9,975 crore in
the previous fiscal, which shows better profitability and return.

 We may note that the overall employee ratios are very high, which is a positive sign,
as it means that employees are very productive. It can yield decent returns in future.

 However, the ratios that represent the interest of shareholders are not that strong. The
bank has not paid dividends in the last five years. This can distract shareholders, so
they need to look at it as well.

 Everything in the banking sector depends on confidence and financial resources are
crucial to representing the image of the bank, it is very important for any bank to take
good care of its finances.

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 SUGGESTIONS

 More penetration in the rural areas-

Efforts should be put to increase the penetration level of banking services in rural
areas. PNB should conduct meetings in rural areas to create awareness about the
services of the bank.

 Advertising and branding –

Focus should be given on advertising and branding as it barely invests in serious
promotion activities compared to other banks.

 Building trust (post Past scams)-

Due to PNB past scams, many customers used to feel insecure but the services of
PNB has got better year by year and have again gained the trust of the customers and
they should keep on maintaining the services.

 Improving Servicescape-
Recent trends show that customers gets attracted by to physical environment or the
interiors of the banks also and it has been noticed that the interior of PNB is not very
appealing. Therefore, it is suggested to them to improve their Servicescape to make
customer experience more enjoyable and memorable.

 New opportunities in untapped market-

The CEO of the bank said that MSME, agriculture, agro-based industries, healthcare,
among others, present ample opportunities for growth and lending. Therefore, a wide
untapped market can be targeted.

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 REFERENCE

 https://en.wikipedia.org/wiki/Punjab_National_Bank

 https://www.mbaskool.com/brandguide/banking-and-financial-services/825-punjab-
national-bank.html

 https://www.thehindu.com/news/national/nirav-modi-case-fresh-cbi-charge-sheet-
against-retired-pnb-official-for-disproportionate-assets/
article32752118.ece#:~:text=The%20CBI%20has%20filed%20a,2.63%20crore%2C
%20officials%20said%20Friday.

 https://www.pnbindia.in/BoardofDirectors.aspx

 https://www.financialexpress.com/industry/banking-finance/pnb-to-focus-on-self-
service-automation-to-deal-with-covid-19-challenges-ss-mallikarjuna-rao/2022557/

 https://www.pnbindia.in/schemes-products-services.html

 https://cio.economictimes.indiatimes.com/news/enterprise-services-and-applications/
punjab-national-bank-selects-mphasis-for-crm-services/41088185

 https://www.ibef.org/industry/banking-india.aspx#:~:text=The%20Indian%20banking
%20system%20consists,addition%20to%20cooperative%20credit
%20institutions.&text=During%20FY16%2DFY20%2C%20credit%20off,at%20a
%20CAGR%20of%2013.93%25.

 https://www.moneycontrol.com/financials/punjabnationalbank/ratiosVI/PNB05

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Thank
You

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