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Epgp term v _macr__group_assignment 1
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Banking Pro ject
Report on working capital management assistance provided by punjab national bank
by Hemanth CRPatna on Oct 14, 2010
Report on w orking capital management assistance provided by punjab national bank
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An attempt is made to 7. Department of Business Administration. who have directly or indirectly supported and helped me in the completion of my project successfully Last. Punjab National Bank. this project report entitled “REPORT ON WORKING CAPITAL MANAGEMENT ASSISTANCE PROVIDE BY PNB” conducted at Punjab National Bank. I state with great pleasure this report would not have been possible without the wonderful help from various quarters. The working capital management involves deciding upon the amount and composition of current assets and how to finance those assets. Mysore during the year 2009-10. cash budgets and inventory status by using sound information management system to enable management to have a close control over the various operations. INTRODUCTION a. but not the least I would like to extend my thanks to all the unseen hands that have made this project possible. ACKNOWLEDGEMENT I. to know the performance and efficiency of working capital management and to know the kind of policy adopted in this part of the management. Date: -5-2010 SAVITHA BAI .CHAPTER-2 Company P rofile CHAPTER-3 Data Interpretation & Analysis CHAPTER-4 Summary of finding suggestion CHAPTER . The skill for working capital is some what unique and novel. b. Haranahalli Ramaswamy Institute of Higher Education. This research study indicates that in order to improve the over all performance of PNB the management must take all possible steps. Pattabiraman Manager of. inventory etc. who gave me an opportunity to conduct this Research Project.H Lecturer. Mysore. HRIHE. Hassan. Hassan prepared by me under the guidance of Mr. This project work has been undertaken to know the procedures involved in the working capital management in PUNJAB NATIONAL BANK. Yadhunand. the project entitled “REPORT ON WORKING CAPITAL MANAGEMENT ASSISTANCE PROVIDE BY PNB” conducted at Punjab National Bank. study the factors contributing towards working capital and the sources on which the company is depending for funds. SAVITHA BAI P in partial fulfillment for the award of degree in Master of Business Administration of the University of Mysore. by Savitha Bai P Reg. Some of the symptoms may be great deal of time is taken in managing current assets and liabilities. Working capital is the funds required for day to day working in a business concern. HASSAN. working capital ratio comparatively below the industry standards and are causing concern. INSTITUTE OF HIGHER EDUCATION HASSAN CERTIFICATE Certified that.in partial fulfillment of the requirement for the award Master of Business Administration. EXECUTIVE SUMMARY The prime objective of any business is to maximize the value of the company and to maximize the wealth of its shareholders. continuous encouragement and valuable suggestions at every stage of the Project.5 conclusion Bibliography 6. express my deep sense of gratitude and sincere thanks to.H Lecturer. Mr. I will take this opportunity to express my deep sense of gratitude to Mr. No. 08MB3741 5. Yadhunand. The research study was also conducted to derive working capital ratios. DECLARATION I hereby declare that.08MB3741 Guide Mr. The failures of the banking sector may have an adverse impact on other sectors. Hassan for his guidance. Based on this study the major findings are that from the overall finance point view.H) (S. is a bonafide work carried out by Miss. No. Working capital management has its own role to play in attaining this goal. SL. There should be a proper trade off between risk and profitability in each decision relating to it. Date: -5-2010 SAVITHA BAI P Place: Hassan Reg.R. For analyzing the factors and conditions influencing working capital tables and graphs were drawn based on the study. 08MB3741 4. receivables. friends. REPORT ON WORKING CAPITAL MANAGEMENT ASSISTANCE PROVIDED BY PUNJAB NATIONAL BANK A Project report Submitted to the University of Mysore.No. through the goals are to make an efficient use of funds for minimizing the risk of loss to attain project objective. review and modify various policies. I further declare that this project report is prepared from the information collected from the PUNJAB NATIONAL BANK and that the same is purely for academic purpose and that the report has not been submitted to any other institution of higher learning for the award of any degree. arranging short-term financing.com/HelloGoogle Ads by Google Aruna Iyer 3 months ago Report on working capital management assistance provided by punjab national bank — Document Transcript 1. Jayaram) Guide Principal 3.2 Favorites Ajay Bobade at Lecturer 1 month ago YouTube. It converted by Web2PDFConvert. diploma or other similar title. controlling movement of cash. Yadhunandan H HARANAHALLI RAMASWAMY INSTITUTE OF HIGHER EDUCATION. company is not performing well. Yadhunand. current ratio. 573 201 2009-10 HARANAHALLI RAMASWAMY 2. the list of which is quite too long. negotiating favorable credit terms.P Place: Hassan Reg. NO CONTENT PAGE NO Introduction 1-5 CHAPTER-1 Literature Review 6. I would also like to extend my deep sense of gratitude to my parents and all my family members. Hassan. It is also been found that important financial ratios like all the liquidity position. (Mr. STATEMENT OF THE PROBLEM: A strong banking sector is important for flourishing economy.com . in partial fulfillment of the requirement for the award of the Degree in Master of Business Administration.
To study the assessment of working capital involving computation of maximum permissible bank finance and sanctioning of credit limits.1 shows the working capital in circulating 12. It is the successful play with finance traders that generally decides the fortune of any business enterprise. Working capital: To carry out daily operation short term funds are required to take care purchase of raw materials. The optimum working capital investment to be determined by decision on the level of capacity utilization. which is calculated from the item appearing in the profit & loss a/c.com . Public Method SECONDARY DATA Secondary data are those. CASH WORKING CAPITAL: It is one. Since the bank is so wide so it was not possible for me to cover all the branches of PNB. LIMITATION OF THE STUDY: Because of heavy work. At time of long term funds are required to create production facilities through purchase of fixed assets such as plant and machinery. warehousing expensing. funds invested are for permanent or fixed basis which are called “ Fixed capital” 11. It may have to pass through various stage to complete its operating cycles: In case of manufacturing firm: Conversion of cash into raw material Conversion of raw material into working progress Conversion of work in progress into finished goods Conversion of finished goods into debtors and bills receivable through sales Conversion of debtors and bills receivable into cash Fig 1. In simple words. d. The study is limited to the selected number of firm located in Hassan only. capital resources are limited and arresting the pace of development. Hassan. SOURCE OF DATA: PRIMARY DATA The study is based on collection of primary as well as secondary data. RESEARCH METHODOLOGY: Research design is a conceptual structure.to. GROSS WORKING CAPITAL: It is also known as “guess working capital”.involves deciding upon the amount and composition of current assets and how to finance these assets. It is know as “Circulating capital”. the firm may be confronted with a difficult situation. 6. pay wages. From the banker’s point of view. In other words of “SHUBIN” working capital is the amount of funds necessary to cover the cost of operating the enterprise”. Conversion of cash into inventories Conversion of inventories into account receivable Conversion of account receivable into cash Fig: 1. The sale of goods will not immediately be converted into cash. To study the need for analyzing working capital management. It has to obtain raw material. but what the expectations come true. 10. f. The magnitude of current assets increases and decreases over a period of time due to increase in the level of activity. SAMPLING UNIT: Manager and employees of the PNB. these funds are known as “Working capital”. 9. previous Bank Records. The concept of net working capital enables a firm to determine the exact amount available for operational requirements. have been relatively neglected in the literature of finance. steps of plans. CHAPTER . Working capital represents both current assets and liabilities.2 Show the operating cycle of manufacturing firm In case of trading firms: 13. it shows the real flow of money or value at a particular time is considered to the most reliable approach in working capital. Working capital requirements is estimate under optimistic assumptions.2 NEED OF WORKING CAPITAL: A study of working capital is of major importance to internal and external analysis because of its close relationship with the day. Research methodology is a way to systematically solving the research problems allotting procedures. which have already been collected by some one else which have been passed through statistical process. Working capital which is concerned with short term financial decision. etc.1 LITERARY OF REVIEW 1. It explains the various steps that are generally adopted by the researcher in studying the research problem along with logic behind them..day operation of business. In which research is conducted. Interview Method 2. The quality of the project work depends on the methodology adopted for the study. The cash working capital indicates the adequacy of cash flow. 1. 2. It constitutes the blue print for the collection. grant credits to its customers. c.3 Shows the operating cycles of trading firm 1. payment of wages. research methodology means the way in which we would complete our prospected task. 4. It enables an enterprise to start and conduct its operations. As time uses limiting factors a detailed study is not possible. OBJECTIVE OF THE STUDY: To understand and analysis how far the theoretical issues of financial management have been practically used in the bank where the present study is made. here the working capital keeps on changing depending upon the changes in production and sales. transportation expenses. measurement. 3. This is actually needed by a borrower for working capital. the amount of funds invested in the various components of current assets. TEMPORARY WORKING CAPITAL: It is also known as “fluctuating or variable working capital”. building. converted by Web2PDFConvert. analysis of data. This happens when a firm is nearing crisis which might arise due to inefficiency of operative force. There is always a minimum level of current assets required at all time by the firm to carry on its business operation. Records and files etc. NEGATIVE WORKING CAPITAL: When current liabilities exceeds current assets. The extra working capital required to support the changes in production and sales is known as temporary working capital. transportation expenses. furniture. PERMANENT WORKING CAPITAL: It means the minimum amount of investment in all current assets which is regarded at all time to carry on minimum level of business activities . 5. INTRODUCTION OF WORKING CAPITAL: Working capital may also be regarded as lifeblood of business. e. Working capital management is not a simple one. negative working capital emerges. There are several method of primary data collection 1.3 TYPES OF WORKING CAPITAL: 1. land. We have human and natural resources in abundance but our 8. the external guide cannot spend more time for interaction. which are fluctuate not constant.1 WORKING CAPITAL MANAGEMENT: Capital required for a business can be classified under two main categories: Fixed capital Working capital Fixed capital: funds are required to every business for two purposes for its establishment and carry on its day to day operation. SCOPE OF STUDY: The present study is conducted keeping in view the working capital financing to ten selected companies in Hassan by Punjab National Bank. Tandon committee named it as “Core current assets”. it is working capital gap (total current assets minus total current liabilities excluding bank borrowing). To suggest modification of existing system of working capital appraisal. storage of funds for working capital has caused many business to fail and in many cases has restarted their growth. etc. NET WORKING CAPITAL: The amount difference between current assets and current liabilities is called net working capital. The term circulate indicates the change or flow of current assets and liabilities. To ascertain the financial appraisal of working capital by using selected ratios. It has the following features: It classified on the basis of time factors It constantly changes from one assets to another Its size increase with the growth of business operation It changes from firm to firm 14. Fig : 1.
A public utility concerns mostly employ fixed assets in its operations. CLASSIFICATION (SME 9 DT 03. Earning capacity & dividend policy:. • Because of inadequacy of working capital. (including retail trade) as well as advances to doctors/gramin chiktsak will be processed/ sanctioned as in the case of other SME advances. waste. Size of Business:.6 SOURCES OF WORKING CAPITAL 18. 1. Price level changes:.Prevalent rate of taxes of the country play a vital role if the rate of tax is low. monopoly condition etc. 5. shall also be covered under the scheme. there is an increase in the investment of working capital or vice versa. 1. 19. managerial inefficiency. 1.It means the manufacturing process.10.e.09) :. irregularities of supply.Business expands during the period of prosperity and declines during the period of depression. Consequently more working capital is required during the period of depression. 11. etc. The operating efficiency of the firm relates to the optimum utilization of resources at minimum cost. size means which is measured in term of a scale of operation. Business Cycle:. SME 17 DT 25.07. the firm might lose its orders and ultimately leads to insolvency. Some firms may be affected much while some others may not be affected at all by the rise in prices.07. Small companies have smaller proportions of cash.e. It becomes difficult for the firm to undertaking profitable projects due to non-availability of the working capital funds. SANCTION (SME 18 DT 12. Term of purchase & sales:.51/05. the requirement of long term funds will be more and working capital will be less. The effect of rising prices may be different firms. • The firm losses its reputation when it is not in position to honour it’s short term obligations.7 DANGERS OF INADEQUATE WORKING CAPITAL: • It stagnates growth. 2. small & medium and also make efforts to take advantage converted by Web2PDFConvert. Nature of industry:. Fair price shops and consumer cooperative stores. • It becomes difficult to implement operating plans and achieve the firm’s profit target. small enterprises having investment in equipment above Rs. asset structure. 10 Lakh & up to Rs.A firm having high rate of stock turnover will need lower amount of working capital as compared to a firm having a low rate turnover. (described in general guidelines on SME advances).5 DETERMINANTS OF WORKING CAPITAL: A large number of factors influence working capital needs of a firm. 6. POL dated 12th June 2009 inter-alia clarifying that “Retail Trade” is a service enterprises under the definition of MSMED Act 2006. Depending upon the duration of manufacturing process the working capital is determined. It can certainly ensure efficient and effective use of its material. 33/05. Therefore all retail trade advances as falling within the service enterprises definition.. in case of labour intensive industries the working capital requirement will more but in case of highly automatic plant. 10Lakh. the firm face tight credit terms. 1. each other. A firm with larger scale of operation will need more working capital than a small firm. 10. As the volume of sales increase.33 dt 18. • It is an indication of defective credit policy and slack collection period.The rising prices will acquire the firms to maintain larger amount of working capital as more funds will be required to maintain the same current assets.. i. • Operating inefficiencies creep in when it becomes difficult even to meet day to day commitments funds. The firms will efficiently contributing to its working capital is proved & pace of the cash cycle is accelerated with operating efficiency. As a result. Longer the manufacturing process. 3. micro. which degenerates into. Consequently. This may tend to make dividend policy liberal and difficult to cope with the future when the firm is unable to make speculative profits. 9.09. the higher will be the requirement of working capital and vice -versa.09.Size means not in length and width but.10. thus the rate of return on investment slumps.09) OBJECTIVE:. • Paucity of working capital funds renders the firm unable to avail of attractive credit opportunities etc. 1. receivables and inventory than large corporation. Taxes:. importance of labour. Other Factors:.To meet the working capital and term loan requirements of retail and wholesale traders. Rate of Stock Turnover:. the chances of inventory mishandling. higher incident of bad debts adversely affects profits. Manufacture cycle:.8 DANGERS OF EXCESS WORKING CAPITAL: • It result in unnecessary accumulation of inventories. and also firms which maintain a steady high rate of cash dividend in respective of its generation of profits need more working capital. • This leads to deceptive values of real assets of the company.09): Now the ministry of micro. while a merchandising department depends generally on inventory and receivables. 4. Thus. SME 9 DT 03. import facility. 13. labour and other resources. then need of working capital is also low otherwise it will be more because a major chunk of the cash goes to the government in the form of tax. banking facilities etc.09.Now.. 3. it has been decided that hence forth all application of trading advances 20.This is an important factors affecting the size and components of working capital. distributors/agencies. The volume of sales and the size of working capital are directly related to 16. micro enterprises having investment in equipment up to Rs.2 Crore & up to Rs. 15.Certain other factors such as management ability. 14. • Tendencies of accumulating inventory to make speculative profit grow.09.O4.06. • Excessive working capital makes the management complacent. 8.The composition of current assets is a function of the size of a business and the industry to which it belongs. SME 18 DT 12. Seasonal Variation:Generally during the busy season a firm required larger working capital. 7. PNB FOR TRADERS CONSOLIDATD SCHEME FOR FINANCING TO TRADERS FOR FINANCING STOCK/RECEIVABLES /OTHER BLOCK ASSETS (RBD 21 dt O8. small & medium enterprises has issued the clarification no 5(6)/2/2009MSME.4 OBJECTIVE OF WORKING CAPITAL: The basic objective of working capital management is to manage the firm’s current assets and liabilities in such a way that the satisfactory level of working capital of business is maintained.com .. This is one of the significant and major clarification. and theft and losses increases. 2 Crore and medium enterprises having investment in equipment above Rs. Although it may not be possible for a firm to control the prices of material or the labour. Production policy:. also influence the requirements of working capital. Volume of sales:. than in the slack season. We are sure that branches will immediately take steps to correctly classify all retail trade advances under the respective categories. 12.Firms having more earning capacity than others due to quality of their products. i. Operating efficiency:17.09. who deal in goods/commodities (indigenous or imported) and term loan for furnishing of the shop/showroom .5 Crore are to be classified accordingly.The production policies pursued by the management have a significant effect on the requirement of working capital in the business..which is an essential pre-requisite of business.A concern that purchases its requirement on credit and sells its products/services on cash requires lesser amount of working capital.
advance be restricted up to 20% of the entitlement (as mentioned above ).200lac-as per NAYAK committee recommendations 23. the mortgagor must be made guarantor in the account. ii) Above Rs 10 Lakh & upto Rs 2 Crore -. CLARIFICATION: (SME/17 DT 25. credit worthiness and past conduct of the party with the existing bank. (iii) Advances against goods or any other item prohibited by RBI/GSWOT analysis is a tool for auditing an organization and its environment. licence under shops & commercial establishment act.1) Term Loan --30% . iii) Term loan for acquiring of assets for furnishing of shop & show room like partition. from time to time will not be covered under this scheme. professional and self employed category may be converted to normal scheme for financing working capital to such sectors within six months from 08. as conveyed vide RBD Advances circular No. in case the shop/show room is rented/leased. * To avoid double financing.(RBDA33 dt 18. ii) collateral security:. (ii) Traders should comply with applicable statutory requirements. ELIGIBILITY:. price fluctuation. weakness and to examine the opportunities and threats which may affect the organization.Vide our circular No. firms. (ii) circles to ensure achievement of budgets allocated by RBD HO for advances to traders for the year 2009-10 which are over and above the budgets allocated by the SME Division for achievement under SME sector. Report 1/23 shall continue to be generated separately for monitoring MSME advances other than retail trade. fixture and furnishing etc. DP against paid up stock and receivables be calculated after netting of receivables and creditors as advised in the guidelines. NATURE & EXTENT OF LOAN: Working capital/term loan (fund based & non-fund based)-need based METHOD OF ASSESSMENT: i) For fund based working capital limits up to rs. HUFs. cooperative societies registered under any law relating to cooperative societies and companies etc.09.i) Primary security:Legally enforceable charge by way of Hypothecation / Pledge/ Assignment. As such. We hope that this process has since been completed by the branches otherwise these loans would be treated under the category of commercial real estate and will attract higher slab of rate of interest as applicable to commercial real estate category. keeping in view nature of stock. keeping in view the satisfactory conduct of the account.2009 respectively: (i) The existing term loan account under the super trade scheme may be allowed to continue under the scheme till adjustment (ii) The existing working capital advances to retail trade categories of traders be brought under the purview of modified and consolidated scheme for financing to traders within a period of six months. While considering /permitting deviations. PNBREP 1/23 is being amended. It is the first stage of planning. they shall have to personally satisfy themselves about the KYC issues. ii) For fund based working capital limits above rs. Since report of SME advances viz. if any. In case the mortgage of IP is offered by third party. certain other activities are specifically clarified by the ministry to be included under the definition of service enterprises as per the act. 100 lac for metro and urban centre and Rs.06. it was clarified that retail trade (as well as loans to education institutions/training institutes) though are part of MSME yet credit guarantee under CGTMSE scheme is not available. SECURITY: For working Capital Limit/ Term loan :. 2) Working capital limits:. And helps marketers to focus and key issue. etc. However.04. sanctioning authority may renew/review the limits with the existing collateral securities provided by way of mortgage of IP/liquid security/guarantee etc. * investment in equipment (original cost of land & building. it may not pick up retail trade advances.2009. advances under the scheme are not covered under credit guarantee scheme of CGTMSE till further instructions as the matter is still under consideration of guarantee trust. risk rating of the party is BB & above subject to slippage converted by Web2PDFConvert. b) * Against Receivables: 40%. iii) Above Rs 2 Crores & up to Rs 5 Crore -. fixture and furnishing etc. MARGIN: . Such higher margins may be decided by sanctioning authority on case-to-case basis. on Stock/Book/Debts/Fixed assets/Block assets of the borrower.25lac for SU and rural centre. advance should be collaterally secured by way of suitable third party guarantee and mortgage of IP may not be insisted upon. However. the branches were advised to follow the following procedure in respect of existing loans sanctioned under super trade scheme. (iii) Similarly. 2006.2009 and 18.200lac-on the basis of CMA data applicable for traders (maximum permissible bank finance system).conditioners. carrying out an analysis using SWOT tool will be enough to reveal the changes which can be implemented easily and gain result G ovt. as stipulated above will be applicable.21 AND 33 dated 8.9/09 of 3rd july 2009 followed by letter dated 10th August 2009 addressed to circle heads. etc. (i) As advised above. While discontinuing the super trade scheme. 24.a) Against stock : 30% .09):.06.and further improve the lending.(i) Traders.40%. 22. Circle heads may consider advances under the scheme within their powers and give administrative clearance to the proposals vested within the power of the lower authorities permitting deviations with regard to existing satisfactory relationship of at least six months of the promoter/ co-obligants with the bank on merits of the case. higher margins may be fixed in cases where commodities financed are perishable or life span is short.50 Lac & above. purchase of air. promoters/co-obligants must have existing satisfactory relationship of minimum/ at least six months with the bank. purchase of air-conditioners.i) Financing of stock in trade. in case of fresh sanctions/enhancements.Legally enforceable equitable/registered mortgage of IP/ pledge or creation of charge on liquid security having realizable/surrender value equal to the amount of loan/credit facilities. in case of loans/limits up to rs. Besides retail trade. book debts( not older than four months) and other assets to be used in the trade.. Therefore. ii) Acquiring of assets for furnishing of shop & show room like partition.com . it was advised that the collateral security norms to retail trade financing shall continue to be as per circulars mentioned under para I above. furniture & fittings and other items not directly related to the service rendered or as may be notified under the MSME Act. we shall continue to obtain outstanding of retail trade separately though PNBREP 1/16c for monitoring outstanding vis-à-vis budgets under retail trade. (iv)Advances is to be considered for genuine trade transactions and not utilized for hoarding/ speculative purposes.micro enterprises. where loan/limit is Rs. such as state/ central sales tax registration certificate. Circle heads may permit relaxation in amount of collateral security by way of mortgage of IP liquid security to the extent of 50% of the loan/limit of the proposals vested within their powers within the powers of the lower authorities on merits of the case.2009) PURPOSE:.5lac. shelf life etc. Swot analysis it is an effective the organization potential by identifying strength.small enterprises. who are individuals. existing working capital accounts under super trade scheme relating to service sector.medium enterprises 21. The revised security norms. other gadgets and delivery van required for running the business should be restricted to a maximum of Rs.04. other gadgets and delivery van required for running the business.Collateral Security :. However. registration with excise department. Classification: Advances to retail traders will be classified under different segments of MSME as per following criteria: Units having investment in equipment: I) Upto Rs 10 Lakh-.
50% A BPLR + 2. ii) In case of financing by way of working capital term loan branches to obtain the working capital term loan agreement. such drawings be restricted up to 50% of CC limits sanctioned or up to powers for sanction of unsecured advance. Hence.00% D BPLR + 3. 2. complete statement of stocks.00% C BPLR + 3. if any..50% C BPLR + 3. etc. (iii) working capital limits shall be sanctioned for a period of one year and shall be renewed / reviewed annually. Incumbents to ensure checking of inventory/stock statement.04. working capital.RETTD 2. Sundry debtors (receivables older than four months should not be considered for netting against sundry creditors. in addition to the other relevant documents. as per extant guidelines. Sanctioning authority to ensure that realistic sales projections are taken for assessment of the limit.e. Circle head may relax/ waive the condition on merit of the case.01. ii) The actual amount of sundry creditors may be netted against sundry debtors and the excess amount of sundry creditors. Regarding netting of sundry debtors against sundry creditors for calculating Drawing power. the quarters for this purpose will be May. depending on nature and merit of individual case.5 Lac granted by way of term loan (WCTL) will be repayable in equal monthly/quarterly installments within a period of 3 to 5 years.2 lac BPLR (11. following instructions may be followed: i) Borrowers to provide. sundry creditors for purchase of stocks and sundry debtors (receivables) 25. RATE OF INTEREST: Existing concession in rate of interest.09).2 Crore stands withdrawn.70010. i. 50 lac BPLR + 1.2 lac & up to Rs.00% (as per credit risk rating given below) AAA BPLR + 1. HO in term of the loaning powers for working capital and term loan as delegated vide L&A Circular.BD. Sanctioning authority may allow 0.(i) working capital limit up to rs. August. up to Rs.e. Existing concession in rate of interest. v) Any other document as required under law/sanction MONITORING & FOLLOW UP : i) The existing system of preparation of Quarterly Review sheets and PMS 28.ABC. 57 dated 28. Branches while opening accounts under the scheme will capture the following code in Finance. which was linked to availability of collateral security by way of mortgage of IP/28id security in respect of advances up to Rs.50%) ii.06. Stands withdrawn.00% BB BPLR + 2. (not more than 4 months old) of the preceding month/quarter. Advances will be classified under retail segment for the purpose of segment reporting under accounting standard. which was linked to availability of collateral security by way of mortgage of IP / liquid security in respect of advances up to Rs. may be considered for financing under post sales limit.09 and subsequent circulars issued on the subject.00% Further. term premia of 0.TLERT. iii) Guarantee deed.1) Rate of interest on existing advances under erstwhile super trade scheme for a period of three months will continue to be charged as advised vide RMD: L&A Cir. as on the date of inventory. 100 converted by Web2PDFConvert. No. circle head may permit DP against advance payment made by them to PSUs/Blue Chip companies (the companies which are financially sound and have good track record of earning ) pin private sector for procurement of goods. LOANING POWERS:. iii) Further. REPAYMENT:. However.Advances under the scheme will be considered at the Hub/CCPC (expect where relaxation has been accorded by RBD.17. from availability of collateral security (earlier scheme) to credit risk rating of the party (modified scheme) up to limit of Rs. would be obtained and submitted to sanctioning authority in case of fund based/ NFB facilities in terms of the extant guidelines of the bank.50% rebate in rate of interest to the borrowers securing above 75 score under PNB score model. inclusive of debtors. Meanwhile. November and February. as per terms of sanction. Borrowers to deal with the bank exclusively. DOCUMENTATION: i) Loan documents as prescribed by the bank be obtained. Suitable changes in the respective interest codes be made immediately. Note :. Above Rs.CCOTH & term loan . 4. book debts.00% AA BPLR + 1. The above facility in regard to netting of sundry debtors against sundry creditors to be provided only to those traders who are maintaining regular books of account which are subject to audit.50% is to be charged for loans repayable in 3 years & above. 26.com .sector code.06. No. 200 lac on merit of the case subject to minimum of BPLR (RBDA/33 dt 18. depending upon nature of facility sanctioned and advised by the bank with regard to financing of stocks and debtors from time to time.Stocks/Assets charged be got comprehensively insured with agreed bank clause at borrower’s cost and the policy to remain with the Bank. CONFIDENTAL REPORTS:.08 and subsequent circulars issued on the subject. No. iv) The amount of sundry debtors. up to the exposure as defined in L&A Cir. (ii) The term loan for acquiring fixed assets will be repayable in equal monthly/quarterly installments within a period of 5 to 7 years including moratorium period of 3-6 months. v) While netting the sundry debtors and sundry creditors. Above Rs. 3. may be deducted from the value of stocks to arrive at the value of security and the Drawing Power may be calculated after providing for the stipulated margin. 17 dated 31. (wherever applicable) by the branches be followed. Rate of interest in such interest rate is linked to credit risk rating of the borrower. after netting.to NPA of the circle during the year 2008-2009 under trading advances not exceeding 1% of the O/S in this category as at the end of previous year (RBDA/33 dt18/06/09) CALCULATION OF DRAWING POWER IN CASE OF WORKING CAPITAL LIMITS: a) Sanctioning Authority may stipulate the periodicity of obtaining inventory/ stock statement on monthly/quarterly basis.PNB 58H Iv) Necessary document for creation of equitable mortgage and tripartite agreement wherever required shall be obtained. GENERAL GUIDELINES 1. 2 crores under erstwhile trading scheme (primarily stock based).50%) iii.50 lac Circle head are empowered to relax rate of interest by 100 basis points in cases. all the sundry debtors including those considered for netting against sundry creditors shall be got hypothecated to the bank. it should be ensured that there is no double financing from the financial system I. rate of interest in such cases will also be linked to credit risk rating of the borrower. iii) the stocks should be checked as per periodicity stipulated in sanction and in accordance with guidelines issued by HO from time to time regarding verification of stocks. 27.50 lac BPLR + 1.00% (12. traders should not avail loan against unpaid stocks. such as DD.09).00% B BPLR + 3.00% D BPLR + 3. it is advised to get the credit risk rating of the party done based on their latest balance sheet for arriving at the applicable rate of interest after 6 months (RBDA/33 dt 18. for advances above Rs. sub . Commencement of repayment be linked with generation of revenue by the business with in a maximum period of 3 months of 1st disbursement. if any. whichever is lower. ii) Forms under quarterly monitoring system (QMS) as applicable for traders and merchant exporters. b) In case of borrower who are whole-sellers/distributors.Confidential reports on borrowers/ guarantors shall be prepared on bank’s prescribed forms before sanction/ renewal of limits. where applicable rate of interest has increased by 200 basis points or above due to charge in structure of levying rate of interest I.2 lac & up to Rs. INSURANCE:. Drawing power in the account will be worked out on the basis of inventory/stock statement.CC. purpose of advance.
e. Further. 33/05 dated 04. 9. it has been decided to extend the period for conversion of account of erstwhile super trade scheme to the consolidated scheme for financing to traders from the existing three months to six months.07 and subsequent circular issued on the subject are to be complied with. penal interest at 2% above the applicable rate of interest from the date of disbursement of loan is to be charged. 51/05 dated 30.08).10. months w.04.e.06 and subsequent circulars issued on the subject are to be complied with. 8.. Extant guidelines of PNB score model issued by RMD. circle head may reduce it up to 25% on selective basis. Documentation: term loan agreement . It is advised that risk rating of all advance under erstwhile super trade scheme should be got done based on their latest balance sheet for arriving at the application rate of interest after 3 months. 11 dated 05. Indian Banks converted by Web2PDFConvert.2005 and L&A Circular No. Existing advances under super trade scheme will be brought under this scheme of advances to trades within a period of three months from the issuance of the above guidelines and drawings in the account be allowed on the basis of monthly / quarterly inventory report (stocks & receivables) after maintaining the required margin. Status of Existing Accounts under PNB Super Trade Scheme:. A communication to this effect be sent to the party and record thereof be maintained in the document file.08. interest may be recovered of monthly basis during the moratorium period. Existing working capital accounts under super trade scheme relating to services sector.In view of increasing incidence of 32. In case where mortgage can not be created immediately tripartite agreement (be got drafted from local council/law officer of RO/ZO) among bank. borrower does not comply with the guidelines of the scheme. (Term loan for purchase/ construction of shop/ show-room or purchase of plot & construction as circulated vide L&A circular No. Circle head may waive obtaining of guarantee on merits. It will discuss upon the matters with the birth of the banking concept in the country to new players adding their names in the industry in coming few years. Penal interest: in case the borrower does not start construction within six months from the purchase of plot and does start business within 12 months from the purchase of plot. Where interest is linked with value of collateral security by way of mortgage of IP/ liquid security. 11. 7.02. INTRODUCTION The banking section will navigate through all the aspects of the Banking System in India. No fresh advance under the scheme be considered till further instructions) TERM LOAN FOR PURCHASE OF SHOP/ SHOWROOM (LA 33 dt 4/4/05) Term loan may be allowed to traders for purchase of shop/showroom subject to following terms and conditions: Amount: Rs. (ii) proposal appraisal including comfortable DSCR etc shall be ensured. loaning powers. 10. (ii) Suitable guarantee. Existing advances under super trade scheme shall no be brought under the purview of the modified scheme within a period of three months.2005 is kept in abeyance for the time being. In case the borrower does not start trading business within 6 months of purchase of shop/possession. No.f. Other instructions issued by the bank on the subject be adhered to including the following: i) Guidelines of pre sanction and post sanction follow up circulated vide L&A cir. Proposals for such advance within the powers of circle head will.04. iii) Guidelines for financing to HUFs including L&A Cir. Security: (i) Equitable/registered mortgage of shop/showroom.06.05. All other guidelines for financing of traders shall remain unchanged. without clearance from any authority. ADMINISTRATIVE CLEARANCE FOR FINANCE TO JEWELERS:. under the captioned scheme. Fresh advances under Super Trade Scheme of the bank were kept in abeyance vide RBD: ADV: Cir No. professionals & self-employment category may be converted to normal scheme for financing working capital finance to such sectors within six 30. extent of loan. Exiting term loan accounts under super trade scheme may be allowed to continue under the same scheme till adjustment of these accounts.04.08. however. it has been decided that the sanctioning authority/ hub In charge must verify the mortgage document carefully before sanction of advance CHAPTER -2 COMPANY PROFILE 33. 5 lac can be granted by way of working capital term loan (WTCL) depending upon repaying capacity of the borrower. Other term & condition of the scheme I.04 and subsequent circular on the subject are strictly complied with.06. Misc Guidelines: (i) in case loan is given only for purchase of shop/showroom sanctioning authority may waive stipulation of exclusive dealing with the bank if advance cheques towards repayment of loan instalment are obtained.HO: on the subject are to be strictly complied with. However. Guidelines for advance against commodities covered under selective credit control of reserve bank of India advised from time to time should strictly be adhered to. Rate of interest: as per interest rate chart on retail lending schemes annexed. etc. necessary documents for creation of mortgages & tripartite agreement wherever required be obtained. applicable interest rate code linked with credit risk rating of the borrower be captured immediately in the CBS system. TERM LOAN FOR PURCHASE OF LAND/PLOT AND CONSTRUCTION THEREON (LA 51 dt 30/4/05): Term loan for purchase of land/plot and construction thereon may be allowed under the above scheme subject to following additional terms and conditions: Margin: 40%.com . borrower and vendor be obtained. Margin: Minimum 25% circle head may reduce it upto 15% on selective basis. The banker of all banks. his account will be categorized under commercial real estate advance and rate of interest will be levied accordingly as circulated by RMD. HO: from time to time. be dealt with at his/her level independently.Annexed with the circular. whichever is earlier. In case. it has been decided that administrative clearance from the respective circle head will be obtained before sanction of fresh advance to such jewellers by the concerned sanctioning authority within his/her discretionary powers. 12.(RBDA/50 dt 18. 08.07 5. 3. 2. 29. falling which such advances will be categorized under commercial real estate. guarantee deed -58 H. gem and jewellery. Penal interest for non-compliance of term & conditions be charged as per extant guidelines of the bank. impairment in the accounts of jewellers dealing in trading of gold.04. Working capital limits up to Rs. 6. shall remain unchanged. Repayment: 3-10 years including moratorium of 6-12 months. OR collateral 31.100 lacs. security of another property valuing at least 100% of loan amount.dated 21. Iv) Guidelines for advance against stocks issued by L&A circulars 84 dated 12. penal interest at 2% above the applicable rate of interest from the date of disbursement of loan is to be charged. Loan for furnishing of show room be also allowed upto 20% of cost of shop/showroom. 18/08 dated 10. Reserve Bank of india (RBI). ii) Guidelines for financing debtors issues vide L&A circular 55 dated 10. rate of interest. it has now been decided to discount the scheme. Further. 58 dated 01.07 and subsequent circular issued on the subject are strictly complied with. A communication to this effect be sent to the concerned borrowers and record thereof be maintained in document file. security.09.1.
Today. 2. As on March’09. etc. The bank has been ranked 34. o 2008: PNB opened a branch in Hong Kong. Bharat Bank became Bharat Nidhi Ltd. Shri E. o 1951: PNB acquired the 39 branches of Bharat Bank (est. The bank has ambitious plans of major technological up-gradation to establish capability of having 100. London. Besides being ranked as one of India's top service brands.) PNB's founders included several leaders of the Swadeshi movement such as Dyal Singh Majithia and Lala HarKishen Lal. the bank has also entered the credit card & debit card business. Afghanistan. o 1947: Partition of India and Pakistan at Independence.com . Punjab National Bank caters to a wide variety of audience through spectrum of services including corporate and personal banking. Since its humble beginning in 1895 with the distinction of being the first Indian bank to have been started with Indian capital. o September 1965: After the Indo-Pak war the government of Pakistan seized all the offices in Pakistan of Indian banks. 1942). the oldest private sector bank in Kerala. the bank has a capital adequacy ratio (CAR).091 crore.Association (IBA) and top 20 banks like IDBI. Oslo. It serves over 37 million customers. o PNB also opened a representative office in Shanghai.During the FY 2008-09. PNB also had one or more branches in East Pakistan (Bangladesh).77% and 0.64. o 1998: PNB set up a representative office in Almaty. o 1986: PNB acquired Hindustan Commercial Bank (est. industrial finance. With over 38 million satisfied customers and 4668 offices.2 COMPANY PROFILE: Established in 1895 in Lahore. During the FY 2008-09.in the UK.05% respectively as on March’09. It also enjoys the highest rating by all four domestic rating agencies and one of the few banks to boast a AAA rating on its perpetual debt issue. o 1963: The Government of Burma nationalized PNB's branch in Rangoon (Yangon). (The first entirely Indian bank. Punjab National Bank is one of the oldest banks in India having a virtual presence in every important center of the country. the Bank has 38. o 1940: PNB absorbed Bhagwan Dass Bank. this in Kowloon. a scheduled bank located in Delhi circle. and a second branch in Hong Kong. Bank has a strong capital base with capital adequacy ratio as per Basel II at 14. o 1976 or 1978: PNB opened a branch in London. Dubai.463 crore. which makes it enjoy one of the highest penetration rate of banking activities in the country. o 1961: PNB acquired Universal Bank of India. was established in 1881 in Faizabad. 36. ABN AMRO. o 1986 The Reserve Bank of India required PNB to transfer its London branch to State Bank of India after the branch was involved in a fraud scandal. The bank enjoys strong fundamentals. its’ ratio of priority sector credit to adjusted net bank credit at 41.31%. out of which 2/3 of its branches in rural and semi rural areas-the largest among nationalized banks. the bank achieved a net profit of Rs 3. 35. o 2003: PNB took over Nedungadi Bank. At the time of the merger with PNB. o 2007: PNB established PNBIL . and is planning a fourth in Birmingham. The bank's total assets for financial year 2007 were about US$60 billion PNB has a banking subsidiary in the UK.72% was also higher than the respective national goals of 40% & 18%. agricultural 37. o 1969: The Government of India (GOI) nationalized PNB and 13 other major commercial banks. Kazakhstan. 248th biggest bank in the world by Bankers Almanac.1 Industry scenario Punjab National Bank(PNB) was registered on May 19. one in London. with assets of more than Rs 2. The bank has successfully migrated to the Basel 2 accord in February this year. 1969. finance and international finance.17% respectively. Gold coin & assets management business etc. 2. o 1904: PNB established branches in Karachi and Peshawar. PNB has achieved significant growth in business which at the end of March 2009 amounted to Rs 3. 1943) in a rescue.46. maintaining its number ONE position amongst nationalized banks. well above the Basel-2 regulatory requirement. The bank has over 35 million customers through 4540 offices including 421 extension counters. with two offices.000 terminals under the Core Banking Solutions (CBS) with a greater thrust on increasing international footprints. Since then it has opened a third branch in Leicester. o 2005: PNB opened a representative office in Dubai. The Bank is the second largest government-owned commercial bank in India with about 4. Lala Lalchand. Sitting on a vast banking resources and significant presence in almost every lending sphere.98% and 5. PNB lost its premises in Lahore. Apart from offering banking products. the Gross and Net NPA ratio of only 1. Norway. Constantly strengthening the capital adequacy ratio through internal accruals and a regular increase in Tier 1 capital has put the bank on a very comfortable and formidable position. HSBC. PNB has continued to retain its leadership position among the nationalized banks.53% & agriculture credit to adjusted net bank credit at 19.Punjab National Bank (International) .500 branches across 764 cities. 1894 under the Indian Companies Act with its office in Anarkali Bazaar Lahore. but failed in 1958. o 1895: PNB commenced its operations in Lahore.C. despite being exposed to numerous market and credit risk elements. with the result that its shareholders received no payment for their shares. o PNB also opened a representative office in London. ICICI. The acquisition added Hindustan's 142 branches to PNB's network. life and non-life insurance business. but continued to operate in Pakistan. PNB has remained fully committed to its guiding principles of sound and prudent banking. 1933) in a rescue.96% as on June 2008. PNB has the distinction of being the first Indian bank to have been started solely with Indian capital that has survived to the present. o 2004: PNB established a branch in Kabul. Punjab National Bank has a net interest margin (NIM) higher than the industry average due to a mix of improving yields and low cost funding base and has one of the healthiest low cost current account saving account (CASA) ratio of 41. which may have moved to Karachi. Nedungadi Bank's shares had zero value. o 2010: PNB received permission to upgrade its representative office in the Dubai International Financial Centre to a branch. and representative offices in Almaty. and Shanghai. including PNB's headoffice.900 crore. which the GOI had nationalized in 1980. as well as branches in Hong Kong and Kabul. o 1960s: PNB amalgamated Indo Commercial Bank (est. Lala Lajpat Rai was actively associated with the management of the Bank in its early years. Shri Prabhu Dayal. PNB is ranked as the 3rd largest bank in the country (after SBI and ICICI Bank) and has the 2nd largest network of branches (4668 including 238 extension counters and 3 overseas offices). with 39% share of low cost deposits. Bakshi Jaishi Ram. on July 19. o PNB established an alliance with Everest Bank in Nepal that permits migrants to transfer funds easily between India and Everest Bank's 12 branches in Nepal.03% with Tier I and Tier II capital ratio at 8. bullion business. o 2009: PNB opened a representative office in Oslo. Jessawala. Shri Kali Prosanna Roy.. large franchise value and good brand image. and Lala Dholan Dass. o 1993: PNB acquired New Bank of India. the Oudh Commercial Bank. PNB has always looked at technology as a key facilitator to provide better customer service and ensured that its ‘IT strategy’ follows the ‘Business converted by Web2PDFConvert. and one in South Hall. at 12.
Bhutan.Awards & Achievements of Punjab National Bank in Recent Times "Best IT Team of tYear At the IDRBT Banking Technology awards for the year Award" 2005-06. Kazakhstan. Integrating frontiers of technology and serving various segments of society especially weaker section. Australia Amongst Top 1000 Banks in the World. thrust on recovery and increased efficiency in core operations of the Bank. The bank has also been offering Internet banking services to the customers of CBS branches like booking of tickets. 39. the Bank has been a frontrunner in the industry so far as the initiatives for Financial Inclusion is concerned. UK. In order to increase its international presence. Nepal. Towards developing a cost effective alternative channels of delivery. more inclusive approach to banking. Anupam Account. vegetable vendors. payment of bills of utilities. PNB Vikas Udhami Apart from these . PNB Farmers Welfare 41.Vision:. 2. merchant banking. the composition stood at 21% as against nationalized banks share with reduced 49% in 2007. PNB is at the 1166th position among 48 Indian firms making it to a list of the world’s biggest companies compiled by the US magazine ‘Forbes’.86 lakh No frills Accounts and intends to cover 30.02 Net Profit* 1540 2049 3091 41. vegetables vendors. Bank proposes to start its operation in Fiji Island.To evolve and position the bank as a world class.services Industrial finance Agricultural finance Financing of trade International banking Personal banking Home loan Auto loan ATM/ Debit card Deposit interest rate Credit interest rate Other services: Locker facilities. PNB Vidyarthi SF Account. A second branch in Hongkong at Kowloon was opened in the first week of April’09. one of the major achievements of the Bank is covering all the branches of the Bank under Core Banking Solution (CBS). Krishi Card. Agriculture.Mahila Udyam Nidhi Scheme.Spectrum Fixed Deposit Scheme.5 VALUES AND ETHICS:Bonding and Integrity Ethical conduct Periodic disclosure Confidentiality and fair dealing Compliance with rules and regulations 2. etc. purchase of airline tickets etc. phase in a very prominent time as more than 49% of population financially excluded offers immense opportunity to the bank. thus covering 100% of it’s business and providing ‘A nytime Anywhere’ banking facility to all customers including customers of more than 2000 rural branches. The bank has made rapid strides in this direction. Deposit. Punjab National Bank has opened more than 7. the PNB also offers locker facilities. where the banks all over the world are creeping under tremendous pressure.67 Deposit 139860 166457 209760 22. SKOTCH Challenger for Change Management for the year 2005-06 Award Best IT User in Banking & Financial Services by NASSCOM in partnership with Economic Times Industry . Build and maintain a team of motivated workforce with high work ethos. progressive. 2. According to the RBI data. DIFC Dubai.15 Outlook: Punjab National Bank has always stood with the time even in the most dire of circumstances. Car Finanace. it seems as the Indian banking industry has come a long way and entered in its ever challenging growth 40. 75 million people by 2010 through Biometric Technology apart from comprehensive scheme launched for covering finance and insurance (health and life) for rickshaw pullers. With it’s policy of inclusive growth in the Indo-Gangetic belt. PNB Kushal Udhami. PNB Pragati Udhami. Advances. Multi Benefit Deposit Scheme Credit Schemes . In particular. Personal Loan.000 villages. Singapore. Under the long term vision. PNB Mitra SF Account Current Account . Canada and Singapore. The bank also has a joint venture with Everest Bank Ltd. The Bank has already achieved 100% financial inclusion in 21.6 AWARDS:.strategy’ so as to arrive at “Best Fit”. Credit Cards Social Banking . the bank has retained its NUMBER ONE position among the nationalized banks in terms of number of branches. The core focus of the bank will be on retaining and further improving low cost deposits. The impressive operational and financial performance has been brought about by Bank’s focus on customer based business with thrust on SME. Along with the achievement of 100% branch computerization. Use latest technology aimed at customer satisfaction and act as an effective catalyst for socio economic development. the Bank’s mission is “Banking for Unbanked”. project for empowering women weavers. The Bank has launched a drive for biometric smart card based technology enabled Financial Inclusion with the help of Business Correspondents/Business Facilitators (BC/BF) so as to reach out to the last mile customer. cost effective and customer friendly institution providing comprehensive financial and related services.55 Total Business 236456 285959 364463 24. Kabul and Norway. etc. Punjab National Bank has managed to insulate itself away from fatal transactions and has strictly adhered to the RBI guidelines. Mission:. senior citizens schemes. PNB Prudent Sweep.Gold Card scheme for exporters. Financial Performance Punjab National Bank continues to maintain its frontline position in the Indian banking industry. better asset liability management. Bank is also in the process of establishing its presence in China. ‘The Banker’ listed PNB at 250th place.408 villages. 42. EXIM finance Business Sector – PNB Karigar credit card. The performance highlights of the bank in terms of business and profit are shown below: Parameters Mar'07 Mar'08 Mar'09 CAGR Operating Profit* 3617 4006 5744 26. (EBL). With the help of advanced technology.PNB Vaibhav.2005 converted by Web2PDFConvert. construction workers. At the time of global financial turmoil.Flexible Housing Loan. The bank is facing stiff challenges from its private sector counterparts. total Business.4 VISION AND MISSION :. In a macro-prudential analysis of the Indian economy. 2. operating and net profit in the year 2008-09. Mahabachat Schemes.com . lending to agriculture and small and medium enterprises and repositioning of subsidiaries and joint ventures. Committed to excellence in serving the public and also excelling in corporate values. The BC/BF will address the outreach issue while technology will provide cost effective and transparent services. electronic fund transfer & clearing services.To provide excellent professional services and improve its position as a leader in financial and related services. the banking business composition breakup between private sector banks and nationalized banks stood at 4% and 60% respectively. 43. Pursuing its financial inclusion. Dubai. Trust Corporate Banking . But the equation has taken a paradigm shift in favor of private sector banks owing to phased liberalizations of the BFSI sector. the bank is planning to realize its global aspirations. diary farmers.2004 for Excellence in Corporate Governance – 2005 by Golden Peacock Award Institute of Directors FICCI's Rural for Excellence in Rural Development . improved margin management. Backed by strong domestic performance. PNB Gaurav. senior citizen schemes. PPF schemes and various E. Further. the Bank continues its selective foray in international markets with presence in Hongkong. the bank with more than 2150 ATMs has the largest ATM network amongst Nationalised Banks. etc. The Bank has started several innovative initiatives for marginal groups like rickshaw pullers.47 Advance 96597 119502 154703 26.3 PRODUCT AND SERVICE: Savings Fund Account Total Freedom Salary Account. Shanghai. PNB Smart Roamer Fixed Deposit Schemes .
a. Companies June 2005 9th amongst India's Top 50 Most Trusted Service A. of India in Propagating KVI (Interest Subsidy Eligibility Certificate Scheme) Programmes in NORTH 2009 ZONE National Award for Excellence in Lending Khadi & Village IndustryCommission. Ministry of for Institutional Finance Micro.00 0. Awards & incentives. High gross NPA.00 b. of India in Propagating KVI (Interest Subsidy Eligibility Certificate Scheme) 2009 Programmes in NATIONAL LEVEL National Award for Excellence in Lending Khadi & Village IndustryCommission. Govt.74 10960639. National Award for Excellence in Lending Khadi & Village Industry Commission. THREATS Large number of market players.00 0. Competitive edge. call deposits on demand from public 0. 2002 & 2003 Trophy by Federation of Indian Exporters Organization (FIEO) 21st Amongst Top 500 by the leading Financial Daily The Economic Times.2004 Runner up in 'Best Bank (public Sector) of the year Award' -2005 for excellence in export perforamnce for 3 consecutive Niryat Bandhu Gold years 2001. Fast adaptability to technology. of India for Propagating KVI (Prime Minister Employment Generation Programme) Programmes in 2009 CENTRAL ZONE India Pride Award by dainik Bhaskar and Daily Excellence in PSU 2009 News analysis Indira Gandhi Rajbhasha Promoting Hindi 2009 Shield Emerson Uptime 2009 Champion Awards “Best InfoSphere 2009 (for implementation of Enterprise Wide Data Warehouse Solution” Warehouse) Award by IBM 46. 2007 Excellence Award For Best IT Implementation by IDG Media Pvt. Govt. Small & Medium Enterprises.com .00 (c) Saving fund accounts 74590628. Provide better services. 50. 2004 Excellence in SSI & 2005 Lending Banking Technology Awards 2004 Runner up in 'Best IT Jointly Adjudged by IBA.3 DATA ANALYSIS & INTERPRETATION PROVISIONAL BALANCE SHEET AS AT 31st MARCH 2010 51. Small & Medium Enterprises. inoperative accounts 10years and above 222253. Large number of customers.Development Award Skotch Challenger Award for Exemplary for becoming a pioneer in Public Banks . Small & Medium Enterprises.00 4579494.2007. Ps. current account from banks 0. Special fixed deposits from others 576255. after an in-depth research to analyse the strengths and core competencies of the Global 500 Amity Global Corporate companies and banks which have already made an Excellence Award indelible most admired impression on the Indian economy. Spectrum – Fixed Deposits 94231542.00 0. The Economic Times Dec 2004 Brands 3rd Rank amongst Banking Sector in India The Bankers' Almanac. Finacle & TFCI runner up Award for Outstanding Awards Achiever of the Year (Individual). Home to home banking service.05 f. Slow decision making due to large hierarchy.00 d. London July 2005 Global Banks Skoch Challenger Award Winner for becoming a pioneer in public banks by for Exemplary Use of Skoch consultancy services pvt ltd.05 279405. inoperative accounts –others 3280845.00 105933640. Hyderabad. 2005 Golden Peacock Innovative Product/Service Award 2010 (for BCP implementation) Golden Peacock Award Winner in the ‘Large Joint Entry’. FICCI's Rural Award for excellence in rural development 2005 Development Award Amity Business School. High growth in banking sector. Gurgaon 2005 Technolgy 44. Ministry of for Institutional Finance Micro.13 2957608. MBFD/Sugam/Anupam from others 4194499. 2008 45. of India in Propagating KVI (Interest Subsidy Eligibility Certificate Scheme) Programmes in 2009 CENTRAL ZONE National Award for Excellence in Lending Khadi & Village IndustryCommission. Finacle & TFCI jointly adjudged PNB as runner up Awards in "Best IT Team of the year Award" 2005 PC Quest Users’ Choice Best IT Implementation 2007 Award & 2005 Symantec Visionary Information Security Impact 2005 Award Money Outlok adjudged PNB as runner up in "Best Money Outlook Award Bank (Public Sector) of the year Award" 2005 Banking Technology IBA.40 (b) Refund payable accounts 0. CIO 100 Award Ltd. Noida has conferred the Award to PNB. cash credit (credit balance) 1928373. 2. Small & Medium Enterprises. Excellent training. Govt. Decentralized decision making. 2008 & 2007 & 2005 Banking Technology IBA. Ps. CHAPTER . Finacle & TFCI Team of the Year Award 2005' Money Outlook Award . Ministry of for Institutional Finance Micro. Micro financing.00 e. Changing culture.19 6807796. of India for Propagating KVI (Prime Minister Employment Generation Programme) Programmes in 2009 NORTH ZONE National Award for Excellence in Lending Khadi & Village IndustryCommission. HIERARCHY 48. weakness and to examine the opportunities and threats which may affect the organization. January 2006 323rd Rank in the World 368 amongst Top 1000 The Banker.02 (d) Term deposits 0. first stage of planning. Dun & Bradstreet Award for “Priority Sector Dun & Bradstreet 2009 Lending including Financial Inclusion”. Globalization. It is the 49.2004 by Institute of Directors & 2005 National Award for Ranked 2nd for 4 consecutive years . 2009 & for Excellence in 2007 & 2005 Corporate Governance Skoch Challenger Award For upliftment of Weaker sections of society 2006 for Change Management IDRBT Banking Best IT Team of the Year Award 2006 Technology Awards National Award For First Prize by By Ministry of Small Scale Excellence in lending to Industries.81 d. Other fixed deposits from others 3876582. Diversification towards other fields. 2003.77 b.00 2080611. from time to time will not be covered under this scheme. WEAKNESS Casual behavior.2005 use of Technology Golden Peacock National Training . 2008 & 2009 National Award for Excellence in Lending to For Lending to Micro enterprises 2007 Micro Enterprises Award for the use of Institute for Development and Research in Banking Technology for Financial Technology (IDRBT).00 234010.2002. Govt. And helps marketers to focus and key issue.SWOT analysis is a tool for auditing an organization and its environment. Liberal markets.15 76050297. Govt. Brand recognition. Fixed deposits from banks converted by Web2PDFConvert.37 915828.7 SWOT ANALYSIS:.00 0.00 c. Ministry of for Institutional Finance Micro. LIABILITIES 31-3-2009 31-3-2010 Rs. STRENGTHS Wide network. Swot analysis it is an effective the organization potential by identifying strength.77 Sub Total 1 (a) (a to f ) 15694246. current account from others (firms institutions etc) 10262766. DEPOSITS 1) Demand Deposits a.00 e. Inclusion.2006 Tiny sector Skoch Challenger Award for capacity building for Skoch Consultancy Services Pvt Ltd 2007 FTC initiative Computer Associates Excellence in EMS Roll Out.00 c. Fast decision making. Rs. Small & Medium Enterprises.00 a. Ministry of for Institutional Finance Micro. Corruption and red tapism. ORGANISATION STRUCTURE 47. carrying out an analysis using SWOT tool will be enough to reveal the changes which can be implemented easily and gain result Govt. Building a long term customer.C Nielson Survey. OPPORTUNITIES Fast growing Indian economy.
00 Sub Total 1 (d) ( I to ix) 104952208. INTER BRANCH BALANCE a) Balance due to H.00 Sub total 9 (a to c) 55028.57 37706742.30 5.00 f.OTHER ASSETS: Interest accrued & outstanding on advances 293099.00 10384.00 g.Postage.Interest earned a.00 (iv) Recurring deposits 134351.ACCEPTANCE.. Miscellaneous interest 3306.00 Sub total 6 (a to e) 10742.00 b. overdrafts & loans repayable on demand 31135531.00 1329.00 196193389. OTHER CONTRAITEMS 99602. Reserve bank of india 75573.Payable outside India Cash credit.02 11.08 Intersol account 60065799. ECGC insurance agency commission 0. ACCEPTANCES.00 b) Provision for expenses-paid through suspense 24289. PROVISION AL BALANCE SHEET AS AT 31st MARCH 2010 PROPERTY & ASSETS 31-3-2009 31-3-2010 Rs.00 192670.99 6.36 l.54 o. DRI Deposits 0.00 .ENDORSEMENT AND OTHER .00 33288.87 Sub total 4 (a to o) 3093714.30 485352..00 m.00 c.00 0.28 114861293.7. Call/short term money 2) Other institutions and agencies Sub total 1(a to c) 75573.00 14.00 15.43 239743.00 7643.77 c. Rent on safe deposit vaults (locker rent) 72234.10 d.94 Sub total 10 (a to b) 83456697.00 2.00 10990.37 3. CBS intersol service charges 0.00 38964.00 charges 141470.38 PROVISIONAL PROFIT AND LOSS ACCOUNT FOR THE YEAR 56. EXPENDITURE .. Subscription to news paper & periodicals 11656. Mini deposits 0. House rent allowance 101787. ENDORSEMENT & OTHER 171000.12 Motor car .00 81999.00 26504.00 3.interest paid on others .00 557900. Rs.00 535.com .07 k. INTEREST ACCURED ON DEPOSITS/ BORROWINGS 193070.80 i. Repair/renovation to rented premises 40.00 j. Telephones etc a. Suspended interest b. Received from branches (B) payable out side india 9.00 (i) stationery locally purchased/printed 43493. Recurring Deposits 207331030.28 77154551. IDBC&IUBC 56182. stationery used 139. Employer’s contribution to PF 136115. 1.00 h. City compensatory allowance 0.40 (B) Protested advances 730741.00 21263.00 29441. Dearness allowance 741870. Term loan 7653633.. In india b.00 c) Provision for expenses-payable to others 58760.F.16 h.20 94415.21 88580898.10 8635177. Ps.00 527047.13 65118888.95 d.02 152892.00 557900.With banks With financial institution .73 1175001.38 GRAND TOTAL (Item 1 to 9) 54.30 234249.00 1176..95 3127772.00 8782.88 10057986. Services charges/processing fee/documentation 146496. Ps.00 f. PROVISIONAL PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH 2010 INCOME 31-3-2009 313-2010 Rs.15032710.00 c) Gift cheque payment 1817.00 a. Uniform 1634.36 f.00 k. Telephones 45435.70 0.00 b) Water lighting & electrical charges 44892.F 73472. Ps. c) Intersol account 5.00 j.43 239743.00 2813341.00 b. Medical aid 27309.00 347066. Ps.taxes & lighting a) Rent paid for office premises 115396.89 222006839.SUSPENSES ACCOUNT 55.00 Sub total 6 (I to ii) 43632. Special allowance 75594. OTHER CONTRAITEMS .00 1223092.REFUND PAID ACCOUNT 9.00 7000.32 Sub total 4 (a to e) 105832588.55 e. Conveyance allowance 9179. Rs.00 115396.49 33102.0.depreciation on (i) S.00 11. Ps.00 53.50 b.BILLS RECEIVABLE Being for bills for collection 99602.37 In India Outside India In deposit account In India Outside India Sub total 2 (a to b) 3857556.00 Sub total 3(a to d) 301404.00 Sub total 5 (a to c) 190966.00 0. commission exchange & brokerage a.66 63209.00 7.79 17149. rent .00 d. Advance payment made but recoverable/ adjustment 23919.00 i. 1. OTHER LIABILITIES a) Sundries 0.40 0.64 5.F.82 m.67 676263. Overtime 9929.F 27380. EXPENDITURE 31-3-2009 31-3-2010 Rs. Leave fare concession 20649.50 e.30 487169.97 b.OBLIGATION (A) Inland letter of credit Outward (parties & other banks) (B) foreign letter of credit .00 9000.00 OBLIGATIONS 13.08 23462009.00 240. Sundry provision NPA .00 Interest accrued on deposits with other banks Stationery in hand Stamps in hand 8.00 1817.20 (ii) Saving fund 2342981.00 8.00 l. Issue/ cancellation of drafts/ transfers 211300. CASH IN HAND Cash in hand in India 1658517.08 Term loan 74672136.INTER BRANCH BALANCE Balance with head office 23390898. BALANCE WITH SBI AND OTHER BANKS In current account 3857556.49 3.00 69732.00 c.00 0. Other allowance 141243. RTGS/NEFT/ECS 167.00 469700.00 d) Rupees travellers cheque payment 0. Interest paid on deposits (i) Fixed deposits 7505704.89 222006839.00 51309..10 4.20 2.00 9.Outside India 4.17 GRAND TOTAL (item 1 to 14) 196193389.00 9548. Leave encashment 68979.71 g.00 0. Cash certificate 0. Inland letters of guarantee 2918. ADVANCES (A) Advances (other than protested) Bills purchased & discounted Payable in India 24920.00 0.00 g.00 d) Tax deducted at sources by bank but not deposited e) Other items 65760.00 b.99 c) Miscellaneous taxes 30678.00 f. Rent paid for residential premises 30555.00 27039.NON BANKING ASSETS Acquired in satisfaction of claims 12.00 b.20 102058.00 22811.00 0.00 259. Insurance of any kind at banks cost Others 900.00 converted by Web2PDFConvert. payment to and provision for employees a. furniture & fixture 333369.00 94314.50 2. MONEY AT (ALL AND SHORT NOTICE) In India .00 h.00 210829. Rs.50 c) Other term deposits d) Borrowings 232225.00 -1.67 676263.00 58.00 502988.00 c.00 Sub Total 1(I to iv) 9987036.00 e. ATM/ kiosk charges 153712. interest paid on borrowing (i) bank overdraft & discount paid on TT’s 21143.00 2236774.00 0. Demand loan 682454.(i) import credits (ii) export credits (C) Guarantees on behalf of constituents 171000.00 Sub total 1 (a to f ) 10865800.00 5044.40 0.00 106550. a.00 115641096.00 3632. Collection charge on outward instruments/ bills 60716.cycle & other vehicles Software capitalised 7. BORROWING 1) In indiafrom banks a. OTHER FIXED ASSETS (After depreciation) Safe.00 .76 75241.00 469700. Other bank (overdrafts) c.B) other a.15 6886469.50 Sub total 5 (a to d) 6.40 0.08 129341.00 (iii) Inter – bank deposits 4000.00 b.13 73519.30 41582.10 b) Draft payment 0.00 12. Repairs maintenance (including AMC) S. Issue of duplicate pass book/statement of accounts/ drafts/ pay orders 156.00 n. Other expenditure a. Bank’s contribution to pension fund 50294. Inland documentary credits 0. 1. Telegrams.30 683376.10 11082780.00 8.O b) Balance due to other officer (imprest) 52.81 120750.Law charges 8864.00 0.4. Cash credit 1223157.00 10.63 8146.00 48764.00 742654. Stock invest 247502.15.00 10.00 16599.00 b) MBFD/ Sugam /Anupam/Spectum 39155.00 557900.00 n. PREMISES (After depreciation) 6. All others 0.32 1549227. BILLS FOR COLLECTION BEING BILLS RECEIVED (A) Payable in india 99602. Overdraft 1245754. Incidental charges (on deposit accounts) 154440.00 30842.00 278.00 Foreign currency notes (converted in to rupees) Balance with RBI in current account Sub total 1 (a to c) 1658517. Ps. BILL PAYABLE a) Cash order 299587. ENDED 31st MARCH 2010 57.66 242345.85 53906. Basic pay 1657429.48 952224. Out side India c. Postage 9533. Hundian 57496. Received from parties b.00 i. Telegrams 60.66 178620.00 a) Saving fund -3.
11 67. 20% falls between 5 lakhs to 10 lakhs.000 to 1 10% 20.0 . of Employee 600 Ratio 400 200 0 2007-2008 2008-2009 2009-10 Interpretation: The ratio discloses clearly from the above table that the bank has taken effective steps in the profitable development of funds. According to the table 60% are trading concerns. 20. In lakhs PARTICULARS 2007-2008 2008-2009 2009-10 Total advance 1277 1066 1155 No.83 48524.59.40 Godown rent 0. Thus we can conclude that majority clientele are those engaged in trading. consist of smaller concerns which are proprietorship.31 0.00. of Employees Rs.57 0.com .2 1 0 0 0 0 ve 0 0 0 0 0 . 3. of Percentage companies Less than 15% 03 30% 15% to 25% 02 20% 25% to 50% 04 40% 50% to 100% 01 10% Total 10 100% 64.51 0. of Employee 1000 Ratio 500 0 2007-2008 20082009 2009-10 Interpretation: This ratio indicates about how much deposit is being catered by an employee in the bank.0 . capability and efficiency of the employees has considerably increased in handing more advances in 2009 .Total 10 100 60.4 OPINION REGARDING QUANTUM APPROVED BY PNB FOR WORKING CAPITAL FINANCE: Opinion Total no. LIQUIDITY AND PROFITABILITY: A) OPERATIONAL RATIO 1. 3.00 GRAND TOTAL (1 to 4) 17715640.00 1602.Services 02 20% Trading 06 60% Other 02 20% Total 10 100 61. 20% are services. Thus we can say that clientele of the PNB.73 6602151. 2. rising during 2009 .5 0 Less than 15% 15% to 25% 25% to 50% 50% to 100% Interpretation: The above table shows the proportion of working capital financed by Punjab National Bank.2010 as compared to the position in 2008-2009. Thus we can conclude that mostly 25% to 50% of working capital is financed by PNB..46 2500 2000 1500 Interest Earned Total Income 1000 Ratio 500 0 1 2 3 Interpretation: The above table shows the amount of interest earned out of earning of the bank.55 0.17 863019.115 69. Thus we can conclude that the majority of the working capital required is by clients is over 50 lakhs. According to the table 10% of the organization falls between the range of 1 lakhs. 10% falls between 10 lakhs to 15 lakhs.0 . whereas 20% is in other business.0 0 5 to 0 5 1 2 1 to 0 to to to 0 .0 .000 10.0 0 0 0 0 .000 62.0 .00. 2500 2000 1500 Net profit Total income 1000 Ratio 500 0 2007-2008 2008-2009 2009-10 Interpretation: This ratio indicates the profitability of the bank by dividing net profit by total income. miscellaneous income Rent recovered from officers for use of furniture 575. C. Per employee income: Total income/ No.10 also. of Percentage companies Yes 08 80% Acceptable 01 10% No 01 10% Total 10 100% 63. productivity ratio: 1. Total Percentage Less than 1 lakh .00.000 to 5. It can be seen that the income from interest has constituted a major portion of the total income. 2500 2000 1500 Interest paid Total Income 1000 Ratio 500 0 2007-2008 2008-2009 2009-10 Interpretation: The interest paid in comparison to total income earned is seen to be fluctuated over three years. 2..2010 and falling in the subsequent year. of 12 10 10 Employee 68. 0% are manufacturing.0 0 .0 . Interest paid to total income: Interest paid / total income PARTICULARS 2007-2008 2008-2009 2009-10 Interest paid 865 1000 1200 Total Income 1569 1961 2220 Ratio 0.0 0 5 1 1 1 5 Interpretation The above table shows the range of working capital required.00. B.0 .0 o 0 0 0 b 0 . of Employee 12 10 10 Ratio 0.O 107312. of Employee Rs. 7 6 5 4 Series1 Series2 3 Series3 2 1 0 Services Trading Other Interpretation: The above table shows that the nature of business carried by the clientage.1 CUSTOMERS EVALUATION Type Total Percentage Proprietorship 6 60% Partnership 4 40% Company . in nature.5 3 2.3 ANALYSIS OF QUANTUM OF WORKING CAPITAL REQUIREMENT BY THE CLIENTAGE Ranges Rs.000 to 2 20% 10. The table shows that PNB.1. This indicates that the expenditure has increased year to year compared to last year. 3.5 PROPORTION OF WORKING CAPITAL FINANCED BY PNB Range Total no.0 .00. 40% are partnership. In lakhs PARTICULAR 2007-2008 2008-2009 2009-2010 S converted by Web2PDFConvert. partnership etc. 4. Insurance business 0. In lakhs PARTICULARS 2007-2008 2008-2009 2009-10 Net profit 481 401 253 Total income 1569 1961 2220 Ratio 0. Ratio 0. And more over it keeps fluctuating from 57 in 200708 to 46 in 2009. 3. Per employee advances: Total advances / No.0 2 0 .00 4. Net profit to total income: Net profit / total income Rs. It can be seen that the net profit has increased from 2007-2008 to 2008-2009 and decreased in 2009-10 when compared to total income. thus we can say that the working capital is at satisfactory level. 3.20 0.50 Miscellaneous income – agency service 13995.000 15.54 66.5 4 3.0 . Finance 30% of working capital range of less than 15% to 20%of working capital range between 15% 25%.00 756.00 Miscellaneous income – retail banking 92741. 9 8 7 6 5 Series1 4 Series2 3 2 1 0 Yes Acceptable No Interpretation: The above table shows the customers opinion regarding Punjab National Bank Ltd.00 62. 7 6 5 4 Proprietorship 3 Partnership 2 1 0 1 2 3 Interpretation According to this table 60% of the clients are proprietorship.00. o. The performance of employees is very good in this regard as it can be seen in the above table it shows an increasing trend from 130% in 2007-2008 to 195% to 201% in 2009-10.3 .00. In lakhs PARTICULARS 2007-2008 2008-2009 2009-10 Total deposits 1561 1952 2011 No.000 1 10% 5.201 2500 2000 1500 Total deposits No.000 to 1 10% 15. Per employee deposits: Total deposits / No.96 3.2 NATURE OF BUSINESS Type Total Percentage Manufacturing .36 3.55 0. 40% of working capital range is between 25% to 50% and the remaining 10% of working capital range is between 50% to 100%.00 Sub total 2 (a to o) 853296.195 0.00.55 0.90 5889230.000 to above 5 50% Total 10 100% 6 5 4 . SECTION B: EVALUATION OF OPERATIONAL EFFECT OF THE BANK 3. 1400 1200 1000 800 Total advance No.107 0.0 . of Employees Rs.38 49342. The average capacity. PARTICULARS 2007-2008 2008-2009 2009-10 Interest Earned 869 1086 1013 Total Income 1569 1961 2220 Ratio 0.5 Series1 2 Series2 1.interest/subsidy received from H.106 0.0 0 0 0 0 0 0 0 0 .16 17572500. Interest earned to total income: Interest earned / total income 65.5 1 0. Working capital criteria according to it 80% opinion is that the financial working capital is yes 10% opinion is that the criteria of the financial working capital is no.6 RATIO OF INDICATION OF PRODECTIVITY. Profitability ratios : 1.00.130 0.0 a . 10% falls between 15 lakhs to 20 lakhs and remaining 50% falls between 20 lakhs and above.
There is an increase in deposit in Punjab national bank must take necessary steps to increase the percentage of profit by increasing lending to corporate and big clients. loan requirement.S. As there is increasing trend in the ratio the performance of the employee is very good.time between the application and sanctioning of loan varies from one to three weeks.PARTICULARS 2008-2009 2009 – 2010 Cash credit .9) Cost accounting . The bank should take steps to cut down expenditures.Raman PNB Compliments Website www.pnb. The bank calculates working capital requirement. On deposits 4000 3500 3000 2500 2000 On deposits 1500 1000 500 0 Interpretation:.PARTICULARS 2008-2009 2009-2010 Cash Credit 1223 1175 Overdraft 1245 1223 71.222 70. Which type of organization? a) Proprietorship b) Partnership c) Companies 2. Interest Earning:.Pandey (Ninth Edition) “Vikas Publishing House PVT LTD” (Pg No. There should be reduction in the interest rate on the deposit and increase in non-refunded business and maximum utilization of liquid fund. Punjab national bank must adopt effective credit management techniques to minimize the total defaulting loaners.The above table show the amount of interest earning by the bank on cash credit is increased in the year 2008 – 09 and decreased in the year 2009-2010 of Rs. review and modify 77. Punjab national bank should take initiative to achieve there future plans.what your opinion regarding working capital? a) Yes b) Acceptable c) No 5. 13. 74. Punjab national bank should increase the percentage of deposits. What is the range of amount required for working capital? a) Less than 1 lakhs b) 1 lakhs to 5 lakhs c) 5 lakhs to 10 lakhs d) 10 lakhs to 15 lakhs e) 15 lakhs to 20 lakhs f ) 20 lakhs & above 4.Hill Publishing Company Limited” (Pg No. 73. profitability ration and finance position ration before sanctioning. It can be seen that the income from interest has constituted a major portion of the total income. Punjab national bank should adopt effective management of funds available. Advance:. 1. The net profit of the bank has decreased from 2008-09 to 2009-10. it shows that the Punjab national bank is performing well. various policies.com www.com . In case of a new unit Punjab national bank looks in to the technical feasibility as well as economic viability of the project.22. The proportion of the establishment expenditure incurred gradually increased which is a bad sign for the bank. Punjab national bank should develop awareness among the corporate organization about the various schemes of loans provided by them through a proper management strategy. The percentage of income bank on its working capital stands constant. CHAPTER – 5 Conclusion Conclusion Form the above study the major findings are overall finance point of view.google.I. What is the range of proportion of working capital finance by PNB? a) less than 25% c) 25% to 50% 80. 655. The Punjab national bank ask for three years audited B/S.The above table show the amount of advance given by the bank on cash credit and overdraft is nil for the year 2009 -2010 and on deposit in the year 2009 -2010 is increased Rs. The bank does not borrow money from NBFC or FI to give loans. P/L A/c Sales tax statement.4 FINDING SUGGESTIONS 4.196 0.B. Therefore. income tax assessment and wealth tax assessment for there evaluation purposes. The membership of the Punjab national bank is gradually increasing. Punjab national bank must increase the percentage of loan amount on the fixed deposits.MyPaydayLoanCash.2 SUGGESTIONS:. liquidity ration. of Employees 1000 Ratio 500 0 2007-2008 2008-2009 2009-2010 Interpretation : The ratio related the performance of the employees in earning the total income.com Ads by Google converted by Web2PDFConvert. The lead .Overdraft . The profit made by the bank shown a decreasing trend. The Punjab national bank should also reach out to the corporate clientele for financing their working capital and other requirement.130 0.The bank should adopt a procedure of obtaining details of loans from other banks before sanctioning credit. of 12 10 10 Employees Ratio 0. On overdraft is increased in the year 2008-09 and decreased in the year 2009-2010 0f Rs.com QUESTIONNARIES :79. b) 15% to 25% d) 50% to 100 % × www. This study indicates that in order to improve the over all performance of PNB the management must take all possible steps. BIBLIOGRAPHY BOOKS 78. 5. Though this study may be of academic in nature it may serve a starting point for the managerial action plan towards enhancing not only the operational efficiency but also will prove a great help in understanding and determining appropriate strategic plans to bring various important financial ratios to the level of bank standards. Financial Management . 4.On deposits 3113 3770 72. Only members of the bank can apply for loan.660) Financial Management . activity ration.1 SUMMARY OF FINDINGS: Punjab national bank clientele does not consist of corporate organization.. 2500 2000 1500 Total income No. 75.Total income 1569 1961 2220 No. 1260 1240 1220 Cash Credit 1200 Overdraft 1180 1160 1140 2008-2009 2009-2010 Interpretation:. CHAPTER .M. banking is performing well. 4. Efforts should be made to organize an effective credit collection department.46. Punjab national bank should insist on a clearance certificate stating that no loan is over due to any bank or any institution. What is the type of business? a) Manufacture c) Service b) Trading d) Others 3.Khan and Jain (Fifth Edition) “Tata Mc Graw . financial trading and inventory status by using sound information management system to enable management to have a close control over the various operations. The incidence of defaulting borrowers comes to around 10% of the total loans. 76.