MIS Project Presentation

APPLICATION OF INFORMATION SYSTEM AT

PUNJAB NATIONAL BANK

Submitted By
Group 7 (Sec. A)
PGDM (General) Full Time, Trimester - II
Sharad Mithrani (Roll No.: 038/2016)
Sushil Duggal (Roll No.: 039/2016)
Saurabh Kohli (Roll No.: 040/2016)
Gunmeet Kaur (Roll No.: 041/2016)
Shubham Garg (Roll No.: 042/2016)

Submitted To
Dr. Rabins Porwal
Associate Professor (Sr.) IT

Flow of Presentation
Introduction to Study
Objectives
Research Methodology
Company Overview
Information System in PNB
PNBs IT Setup
Impact of Information Systems
Conclusion
References
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Introduction To Study
The research was done to understand the various aspects of an organization in
the banking industry. Banking industry is crucial industry for any economy as
banking services form a large portion of a countrys GDP.
Organizations in the banking industry have witnessed one of the largest
changes in their overall functioning since their evolution. So, the changes that
IT/IS has brought can easily be seen.
We decided to choose a financial institute, i.e. a bank, as a lot of transactions
take place daily and these have been operating from a very long period.
Information Systems have a significant role to play in the overall functioning of
a bank. With advancements in technologies , the banks have also updated their
systems for better functioning.
Thus we choose Punjab National Bank. It provided us many insights and silent
features that are result of advancement of Information Systems It is one of the
largest nationalized bank with a bright history of its presence from more than a
century ago.
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OBJECTIVES
To understand how Information Systems are designed,
implemented and managed in an organization.
To study various initiatives taken in banking industry for
enhanced CRM.

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Research Methodology
PRIMARY DATA
Questions related to the IS of the bank, changes in the IS over
many years, importance of IS in the banking industry, IS
used by PNB and ways to improve customer satisfaction
through various initiatives and schemes of the bank through
usage of IT were asked.

SECONDARY DATA
The secondary data about the company was collected from
secondary sources, i.e. companys official website and
information available on other public domains as it helped us
to get information about various initiatives takes by the
company. The major information collected was, from the
secondary data, in order to study how IT has evolved in PNB
since 2000.
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Punjab National Bank

Stated in 1895 Lahore. Got nationalized in July 1969.
Record of accomplishment of over 110 years.
Largest branch network in India - 4641 Offices including 419 Extension .
Ranked as 248th biggest bank in the world by Bankers Almanac,
London. (2014)
Relationships with more than 200 international banks of the world.
More than 60 renowned international banks maintain their Special
Rupee Accounts with PNB only.
20 different foreign currency accounts are maintained at major centers
all over the globe by PNB .
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Contd.
Banking services offered include corporate and personal
banking, industrial finance, agricultural finance, financing of
trade and international banking.
Initiated a drive for biometric smart card based technology
enabled Financial Inclusion with the help of Business
Correspondents/Business Facilitators (BC/BF) to reach out to the
last end customer
Over 45 million satisfied customers , 4641 offices & 2500 ATMs
Assets of more than Rs 3,34,230 crores
Ranked as the 3rd largest bank in the country
Customers including more than 2500 rural branches
100% financial inclusion in 22,567 villages
PNB has global presence in Hong Kong, Dubai, UK, Shanghai,
Singapore, Kabul, and Norway.
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Vision and Mission

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

Mission
"Banking for the unbanked"

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Performance Comparison

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2001-2003 Long-Term Strategy

Aim to create a network of its own for long term success.
Strategy was to deploy a centralized core banking
architecture
PNB used services of Infosys for deployment of Finacle. A
core team was selected & Infosys trained these personnel.
The core team customized the package as per their needs.
PNB purchased servers, security infrastructure, and storage
equipment and decided to house it in its own central data
center in New Delhi.
Institute for Development and Research in Banking
Technology (IDRBT), a division of the Reserve Bank of India
(RBI), presented PNB with the award for excellence in
banking technology in 2002.
In March 2000, the bank had only 36 percent of its
businesses covered on computers, as against 84 percent in
2002.
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Information System in PNB

2000 - The Beginning
In March 2000, use of IT was low & relied on manual processes
to collect, store, and analyze business data.
The branches were not connected with each other and was
difficult for management to understand business drivers which
resulted poor customer satisfaction. Manual operations were
comparatively costlier.
The bank used seven different software, which ran on 13
different flavors of UNIX, on standalone PCs. The 500-odd
branches were not networked and only 35 % of the bank's
business was computerized.
Chose a product from a company called Nelito which was a
DOS-based, 'Partial Branch Automation' application. Standalone
versions were chosen since there weren't LANs in place The
interface was simple in design, and easy for the bank
personnel to use. By March 2001, 70.60 % of the bank's
business was computerized.
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2004-2007 Growth Stage

Core Banking Solution ensured standardization of products
and enabled launching of the new financial products.
The core banking solution offered endless path for
integrating various initiatives and to reduce the cost of
transaction, thus offering financial products at cheaper
prices.
In 2004 PNB introduced Loans and Advances Data Desk for
Evaluations and Reports, (LADDER), a computerized
management information system for rationalization of
returns, asset classification and provisioning, credit
monitoring and NPA management
With this manual collation of many loan-related returns
become redundant and branch staff concentrated on
business development and objective monitoring of asset
quality.
In 2006, NASSCOM nominated PNB as the best user of
technology in its sector.
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2008 Rural Initiative

Major issues for rural connectivity were :
Connectivity of branches for transactional ease
Centralization of data
Enhancement of customer service and satisfaction
Innovation in banking services
PNB chose Finacle from Infosys to power its core banking initiative
for rural banking by deploying Finacle across PNBs six Regional
Rural Banks (RRBs) covering 1500 branches.
It enabled RRBs to manage business processes, meet statutory
compliances, enhance internal MIS requirements and offer
customers excellent services at par with private banks.

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2009 100% CBS Implementation

In 2009 , PNB announced that it completed 100 % core banking at its
branches and extension counters.
The bank implemented industry-leading Finacle CBS across its
operations running a flexible and scalable database platform from
Oracle and innovative and cost-effective Sun SPARC.
38 million PNBs customers enjoyed the facility of one bank one
account.
The bank was awarded IBM green award for adopting environment
friendly technology for data warehouse implementation during the
year

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Modern Day Banking Applications

Many value added services like ATMs, Tele-banking, SMS
banking, mobile banking and Internet banking, remote
access facility through its website.
Leads customers to avail the Straight to Processing
(STP) facility
Electronic Data Interchange (EDI) is another
technology initiative that the bank has taken up.
Very interesting development with PNB is its contract
with Indian Railways
The PSU has also introduced bilingual software known as
Bank-mate. With the help of this software reports can be
generated in Hindi and also can get passbook in Hindi.

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PNBs IT Set Up
Systems
Earlier PNB used servers which were NT-based, from various
vendors. Now, Sun's hardware on Solaris. Sun's Fire
servers, Solaris OS, and Oracle's RDBMS are now in use.
Network Design
Cisco tied up with PNB to make network design and
implement a nationwide networking base to connect all its
offices The various branches are connected to the data
center using new-world routing and switching
technologies.
Storage Systems
PNB stores transaction data for almost 10-12 years. Around
164 Sun enterprise class servers are used in DAS
architecture. The total capacity is of multiple TBs. The Sun
hardware uses an in-built storage management tool.
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Contd.
WAN and Connectivity
Uses connectivity from MTNL and BSNL. It used Bharti's leased
line between Mumbai and Delhi & installed Reliance
Infocomm's fiber optic backbone along with the leased lines in
locations where the optic fiber does not reach.
PNB appointed HCL Com-net to carry out 24x7 monitoring of the
countrywide network. There's a live link between HCL and
PNB's IT head office. The network is monitored remotely and
can also be viewed at the bank's IT facility, where a separate
monitoring system is used.

Security Systems
Cisco was chosen as the service provider tomeet these stringent
requirements. The bank uses a range of security products like
Firewalls and IDSs from Cisco for its security needs in its LANs
and WAN. All data transactions between its routers and
switches are encrypted. It has appointed Ramco Systems as
the security integrator.
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Contd.
Software Resources
PNB is using different software for its operational activities
for its
efficient running, the Software used by PNB
include: Bank-mate
Attack Filters: - Spyware, Trojan, VoIP etc.
Protocols: - IP, VLAN, DNS, HTTP, FTP, TCP, TELNET,
UTP etc.
Operating Systems: - UNIX, Solaris, Windows NT,
Databases: - MS Access, MS SQL, Oracle, FoxPro.
Hardware Resources
HCL, IBM Desktops
NT Based servers from IBM
Suns hardware for Solaris,Network Cards.
Routers, Scanners, printers etc.
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PNBs Computing Resources

Payroll Transaction Processing System

Online Assistance
Account Opening
SPNS (Shared Payment Network System)
RTGS (Real Time Gross Settlement)
Mobile Alert Service

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Impact of Information Systems

Finacles Impact
It integrated CRM module enabling PNB to offer value proposition to
loyal customers. The layered Service Oriented Architecture (SOA),
STP capabilities, web-enabled technology and 24 X 7 operations
ensure multi-channel, multi-country and multi-currency
implementations. The rich modules in the solution provide banks
with a varied feature to innovate their product offerings.
Innovative Product Offerings
Offers endless features for banks to redesign products for multiple
markets. The product bundling capabilities of this solution offered a
varied range for banks to create products with fascinating features.
The facilities provided include differential pricing, channel rules and
customization.
Quicker Operations
Service Oriented Architecture (SOA) enables the IT team at the bank
to effect changes without touching the base code, ensuring lesser
vendor dependency and faster adaptability to changing business
conditions
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Contd.
Increased Efficiencies and Productivity
It eliminated manual tasks and reduced process time. The
vanishing error and data redundancies also results in
increased branch productivity. Straight through Processing
(STP) abilities enhance reduction in turnaround and
processing time, increasing output and enabling speedy
completion of tasks.
Impact on Employees
Information System serves employees with:
User friendliness
Easy storage and access of data
Removal of redundancies
Fastening up of the processes
Providing up of multiple views at same time.
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Conclusion
Information Technology (IT) innovations in the last few years have
changed the landscape of banks in India.
One of the biggest benefits that the bank has derived out of IT has
been the huge saving on recruitment frontthe bank has not
recruited more staff even while the business and work pressures
have gone up five times.
Anywhere banking, telebanking, mobile banking, net banking,
automated teller machine(ATMs), credit cards, debit cards, smart
cards, call centers, CRM, data warehousing have totally transformed
the banking industry.
It explains all the TPS how the transactions are made by the bank,
using of these TPS from the new events such as account opening,
new allowances etc.
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References
http://www.networkmagazineindia.com/200305/tech4.sht
ml
http://www.expresscomputeronline.com/20021202/banks7
.shtml
http://www.business-standard.com/india/news/pnb-toimplement-loan-data-software/151819/
http://www.financialexpress.com/news/pnb-in-networkingpact-with-cisco/64296/
http://www.pnbindia.com/
http://netpnb.com/

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