PNB Report

1
TRAINING REPORT
ON
CURRENT ACCOUNT ANALYSIS IN
PUNJAB NATIONAL BANK
Submitted to
MAHARSHI DAYANAND UNIVERSITY,ROHTAK
In partial fulfillment of the requirement
For the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
(INDUSTRY INTEGRATED)
(II Semester)
Submitted by
Name: Sukrit Goel
Regn. No.
Roll No.
Tecnia Institute of Applied studies
(ELC CODE:)
BD-1 Pitam Pura
New Delhi :110034
JULY 2011

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CERTIFICATE
This is to certify that Ms.Sukrit Goel , a student of the
Maharshi Dayanand University, Rohtak, has prepared his Training Report entitled
“Current Account Analysis in Punjab National Bank” at Punjab National Bank ,under
my guidance. He has fulfilled all requirement leading to award of the degree of MBA
(Industry Integrated). This report is the record of bonafide training undertaken by him
and no part of it has been submitted to any other university or Educational Institution for
award of any other degree/diploma/fellowship or similar titles or prizes
I wish him all success in life.
Signature of Faculty Guide
NAME :
DESIGNATION :
OUALIFICATION :
Seal of the ELC

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STUDENTS DECLARATION
I hereby declare that the Training Report Conducted at
PUNJAB NATIONAL BANK
Head Office : 7 Bhikaijicama place
New Delhi
Under the Guidance of
Varun Sir
Submitted in Partial fulfillment of the requirements for the
Degree of
MASTER OF BUSINESS ADMINISTRATION
(Industry integrated)
TO
MAHARSHI DAYANAND UNIVERSITY, ROHTAK
Is my original work and the same has not been submitted
For the award of any other Degree/diploma/fellowship
Or other similar titles or prizes.
Place: Student’s Signature
Date: Name: Sukrit Goel
Regn. No.:
Roll No.

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ACKNOWLEDGEMENTS
Note to students:
Acknowledgements to be mentioned to the Head of the Extended Learning Centre,
Faculty guide, NIAM‟s Training Officer in charge. Manager in charge, other staff
member, colleagues and friends for their encouragement, support, guidance, and
assistance for undergoing successful management training and preparing the Training
Report.

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CONTENTS
CONTENTS Page No
Chapter 1 : INTRODUCTION 1
1.1. General Introduction about the sector
1.2. Industry Profile
a) Origin and development of the industry
b) Growth and present status of the industry
c) Future of the industry
Chapter 2 : PROFILE OF THE ORGANISATION
2.1 Origin of the Organisation
2.2 Growth and development of the Organisation
2.3 Present status of the Organisation
2.4 Functional Departments of the Organisation
2.5 Organisation structure and Organisation
2.6 Product and service profile of the Organisation
2.7 Market profile of the Organisation

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Chapter 3 : DISCUSSION ON TRAINING
3.1. Student‟s work profile, tools and techniques used
3.2. Key learning‟s
Chapter 4 : STUDY OF SELECTED RESEARCH PROBLEM
4.1 Statement of research problem
4.2 Statement of research objectives
4.3 Research design and methodoly
Chapter 5 : ANALYSIS
5.1 Analysis of data
5.2 Summary of finding
Chapter6 : SUMMARY AND CONCLUSION
6.1 Summary of learning Experience
6.2 Conclusion and Recommendation
APPENDICES
 Questionnaire
 Account opening form
 Awards
BIBLIGRAPHY

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1.1 General Introduction about the sector
Service Sector of Indian Economy contributes to around 55 percent of India's GDP
during 2006-07. This sector plays a leading role in the economy of India, and contributes
to around 68.6 percent of the overall average growth in GDP between 2002-03 and 2006-
07.
There has been a 9.4 percent growth in the Indian economy during 2006-07 as against a
rise of 9 percent in the same during 2006-06. During this growth in Indian economy, the
service sector witnessed a rise of 11 percent in the year 2006-07 against the 9.8 percent
growth in 2005-06. The service sectors of Indian economy that have grown faster than
the economy are as follows:
 Information Technology (the most leading service sectors in Indian
economy)
 IT-enabled services (ITeS)
 Telecommunications
 Financial Services
 Community Services
 Hotels and Restaurants
There has been a 13 percent hike in the service sectors of trade, hotels, transport and
communication in India's economy as compared to the 10.4 percent rise in the previous
year. The financial services that comprise of banks, real estate, insurance, and business
services witnessed a rise of 11.1 percent during 2006-07 against the 10.9 percent growth
in the previous year. Service sectors including community, social, and personal services
experienced a growth of 7.8 percent during 2006-07 as against 7.7 percent growth in the
previous year.
The service sector of India has also witnessed a remarkable rise in the global market apart
from the Indian market. It has experienced a rise of 2.7 percent in 2006 from that of 2
percent in 2004. The broad-based services in the trade sector has undergone a large-scale
rise. A statistics concerning the growth of India's service sectors are listed below:

9
 The software services in Indian economy increased by 33 percent which
registered a revenue of USD 31.4 billion
 Business services grew by 82.4 percent
 Engineering services and products exports grew by 23 percent and earned a
revenue of USD 4.9 billion
 Services concerning personal, cultural, and recreational had a growth of 96
percent
 Financial services had a rise of 88.5 percent
 Travel, transport, and insurance grew by 23 percent
The software services in Indian economy along with the export of products is
growing at a massive pace and thereby witnessed an alarming rise of 35.5 percent
and reached a lump some amount of USD 18 billion. The IteS and BPO sectors grew
by 33.5 percent and earned a revenue of USD 8.4 billion. The service sector of
Indian economy has been the most high-powered sector in India's economy. It has
also been focusing in various investments of late. As Indian economy is looking
forward for more liberalization, sectors like banking are on its way to loom large and
occupy a more significant position in India's economy.
1.2 Industry Profile
A. Origin and development of the industry : Without a sound and effective
banking system in India it cannot have a healthy economy. The banking system of India
should not only be hassle free but it should be able to meet new challenges posed by the
technology and any other external and internal factors. For the past three decades India's
banking system has several outstanding achievements to its credit. The most striking is its
extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India.
In fact, Indian banking system has reached even to the remote corners of the country.
This is one of the main reasons of India's growth process. The government's regular
policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14
major private banks of India. Not long ago, an account holder had to wait for hours at the
bank counters for getting a draft or for withdrawing his own money. Today, he has a

10
choice. Gone are days when the most efficient bank transferred money from one branch
to other in two days. Now it is simple as instant messaging or dial a pizza. Money has
become the order of the day. The first bank in India, though conservative, was
established in 1786. From 1786 till today, the journey of Indian Banking System can be
segregated into three distinct phases. They are as mentioned below:
 Early phase from 1786 to 1969 of Indian Banks
 Nationalization of Indian Banks and up to 1991 prior to Indian banking sector
Reforms.
 New phase of Indian Banking System with the advent of Indian Financial &
Banking Sector Reforms after 1991.
Phase:I
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan
and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of
Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency
Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was
established which started as private shareholders banks, mostly Europeans shareholders.
In 1865 Allahabad Bank was established and first time exclusively by Indian, Punjab
National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906
and1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian
Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935.
During the first phase the growth was very slow and banks also experienced periodic
failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To
streamline the functioning and activities of commercial banks, the Government of India
came up with The Banking Companies Act, 1949 which was later changed to Banking
Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of
India was vested with extensive powers for the supervision of banking in India as the
Central banking authority.

11
During those days public has lesser confidence in the banks. As an aftermath deposit
mobilization was slow. Abreast of it the savings bank facility provided by the Postal
department was comparatively safer. Moreover, funds were largely given to traders.
Phase:II
In 1955, Government nationalized Imperial Bank of India with extensive banking
facilities on a large scale especially in rural and semi-urban areas. It formed State Bank of
India to act as the principal agent of RBI and to handle banking transactions of the Union
and State Governments all over the country.
Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th
July 1969, major process of nationalization was carried out. It was the effort of the then
Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country
were nationalized.
Second phase of nationalization Indian Banking Sector Reform was carried out in 1980
with seven more banks. This step brought 80% of the banking segment in India under
Government ownership.
The following are the steps taken by the Government of India to Regulate Banking
Institutions in the Country:
 1949: Enactment of Banking Regulation Act.
 1955: Nationalization of State Bank of India.
 1959: Nationalization of SBI subsidiaries.
 1961: Insurance cover extended to deposits.
 1969: Nationalization of 14 major banks.
 1971: Creation of credit Guarantee Corporation.
 1975: Creation of regional rural banks.

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 1980: Nationalization of seven banks with deposits over 200 crores.
After the nationalization of banks, the branches of the public sector bank India raised to
approximately 800% in deposits and advances.
Took a huge jump by 11,000%.
Banking in the sunshine of Government ownership gave the public implicit faith and
immense confidence.
Phase: III
This phase has introduced many more products and facilities in the banking sector in its
reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was
set up by his name, which worked for the liberalization of banking practices.
The country is flooded with foreign banks and their ATM stations. Efforts are being put
to give a satisfactory service to customers. Phone banking and net banking is introduced.
The entire system became more convenient and swift. Time is given more importance
than money.
The financial system of India has shown a great deal of resilience. It is sheltered from any
crisis triggered by any external macroeconomics shock as other East Asian Countries
suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high,
the capital account is not yet fully convertible, and banks and their customers have
limited foreign exchange exposure.
B. Growth and present status of the industry
In the early 1990s, the then Narsima Roa government embarked on a policy of
Liberalization , licensing a small number of private banks. These came to be known as
New Generation tech-savvy banks, and included Global Trust Bank (the first of such new
generation banks to be set up), which later amalgamated with Oriental Bank of
Commerce, AXIS bank(earlier as UTI bank),ICICI bank and HDFC bank. This move,

13
along with the rapid growth in the economy of India, revitalized the banking sector in
India, which has seen rapid growth with strong contribution from all the three sectors of
banks, namely, government banks, private banks and foreign banks.
The next stage for the Indian banking has been setup with the proposed relaxation in the
norms for Foreign Direct Investment, where all Foreign Investors in banks may be given
voting rights which could exceed the present cap of 10%,at present it has gone up to 49%
with some restrictions.
The new policy shook the Banking sector in India completely. Bankers, till this time,
were used to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4) of functioning.
The new wave ushered in a modern outlook and tech-savvy methods of working for
traditional banks. All this led to the retail boom in India. People not just demanded more
from their banks but also received more.
Currently (2007), banking in India is generally fairly mature in terms of supply, product
range and reach-even though reach in rural India still remains a challenge for the private
sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks
are considered to have clean, strong and transparent balance sheets relative to other banks
in comparable economies in its region. The Reserve Bank of India is an autonomous
body, with minimal pressure from the government. The stated policy of the Bank on the
Indian Rupee is to manage volatility but without any fixed exchange rate-and this has
mostly been true.
With the growth in the Indian economy expected to be strong for quite some time-
especially in its services sector-the demand for banking services, especially retail banking
, mortgages and investment services are expected to be strong. One may also expect
M&As, takeovers, and asset sales.
In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake
in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor
has been allowed to hold more than 5% in a private sector bank since the RBI announced

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norms in 2005 that any stake exceeding 5% in the private sector banks would need to be
vetted by them.
In recent years critics have charged that the non-government owned banks are too
aggressive in their loan recovery efforts in connection with housing, vehicle and personal
loans. There are press reports that the banks' loan recovery efforts have driven defaulting
borrowers to suicide.
Banks with branches in India as on date
 ABN AMARO Bank N.V.
 Abu Dhabi Commercial Bank Ltd
 American express Bank
 Antwerp Diamond Bank
 Arab Bangladesh Bank
 Bank International Indonesia
 Bank of America
 Bank of Bahrain & Kuwait
 Bank of ceylon
 Bank of Nova Soctia
 Barclays Bank
 BNP Paribas
 China Trust Commercial Bank
 Citibank
 DBS Bank
 Dectuche Bank
 HSBC (Hongkong & Shanghai Banking Corporation)
 JP Morgan Chase Bank
 Krung Thai Bank
 Marsheq Bank
 Oman International Bank
 Shinhan Bank

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 Sonali Bank
 Standard Chartered Bank
 State Bank of Mauritius
Banks with Representative Offices in India: SAmerican Banks
 The Bank of New York
 Wachovia Bank
Australian Banks
 Commonwealth Bank
 National Bank Australia
 Westpac Banking Corporation
Austrian Banks
 Raiffeisen Zentral Bank Osterreich
Belgian Banks
 Fortis Bank.
 K.B.C. Bank N.V.
Canadian Banks
 Royal bank of Canada
UAE Banks
 Emirates Bank International
French Banks
 Credit Industriel et Commercial
 Natixis

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German Banks
 Bayerische Hypo und Vereinsbank
 Commerzbank
 Dresdner Bank
 DZ Bank AG Deutsche Zentral – Genossenschafts Bank
 HSH Nordbank
 Landesbank Baden – Wurttemberg
Irish Banks
 DEPFA Bank
Italian Banks
 Banc Intesa Banca Commerciale Italiana
 Banca di Roma
 Banca Populare Di Verona E Novara
 Banca Popolare di Vicenza
 BPU Banca –Banche Popolari Unite
 Monte Dei Paschi Di Sienna
 Sanpaolo IMI Bank
 Uni Credito Italiano
Nepalese Banks
 Everest Bank
Portuguese Banks
 Caixa Geral de Depositos

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Russian Banks
 Vnesheconombank
 VTB India
 Promsvyazbank
South African Banks
 First Rand Bank
South Korean Banks
 Wori Bank
Spanish Banks
 Banco de Sabadell
 Banco Bilbao Vizcaya Argentaria
SriLankan Banks
 Hatton National Bank
Swiss Banks
 UBS
 Zurcher Kantonalbank
 Saqib Saeed Qureshi

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C. Future of Banking Sector
Financial sector reforms were initiated as part of overall economic reforms in the country
and wide ranging reforms covering industry, trade, taxation, external sector, banking and
financial markets have been carried out since mid 1991. A decade of economic and
financial sector reforms has strengthened the fundamentals of the Indian economy and
transformed the operating environment for banks and financial institutions in the country.
The sustained and gradual pace of reforms has helped avoid any crisis and has actually
fuelled growth. As pointed out in the RBI Annual Report 2001-02, GDP growth in the 10
years after reforms i.e. 1992-93 to 2001-02 averaged 6.0% against 5.8% recorded during
1980-81 to 1989-90 in the pre-reform period. The most significant achievement of the
financial sector reforms has been the marked improvement in the financial health of
commercial banks in terms of capital adequacy, profitability and asset quality as also
greater attention to risk management. Further, deregulation has opened up new
opportunities for banks to increase revenues by diversifying into investment banking,
insurance, credit cards, depository services, mortgage financing, securitisation, etc. At the
same time, liberalisation has brought greater competition among banks,both domestic and
foreign, as well as competition from mutual funds, NBFCs, post office, etc. Post-WTO,
competition will only get intensified, as large global players emerge on the scene.
Increasing competition is squeezing profitability and forcing banks to work efficiently on
shrinking spreads. A positive fallout of competition is the greater choice available to
consumers ,and the increased level of sophistication and technology in banks. As banks
benchmark themselves against global standards, there has been a marked increase in
disclosures and transparency in bank balance sheets as also greater focus on corporate
governance.

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Chapter 2
PROFILE OF THE ORGANISATION

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2.1 ORIGIN OF THE PNB
Punjab National Bank (PNB) was established in 1895 at Lahore PNB has the distinction
of being the first Indian bank to have been started solely with in capital. In 1969, Punjab
National Bank was nationalized along with 13 other banks.
 1895: PNB established in Lahore.
 1904: PNB established branches in Karachi and Peshawar.
 1939: PNB acquired Bhagwandas Bank
 1947: Partition of India and Pakistan at Independence. PNB lost its premises in
Lahore, but continued to operate in Pakistan.
 1961: PNB acquired Universal Bank of India.
 1963: The Government of Burma nationalized PNB‟s branch in Rangoon
(Yangon).
 September 1965: After the Indo-Pak war the government of Pakistan seized all the
office in Pakistan of Indian banks, including PNB‟s head office, which may have
moved to Karachi. PNB also had one or more branches in East Pakistan
(Bangladesh).
 1960: PNB amalgamated Indo Commercial Bank (est. 1933) in a rescue.
 1969: The Government of India (GOI) nationalized PNB and 13 other top banks.
 1976 or 1978: PNB opened a branch in London.

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 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.
 1988: PNB acquired Hindustan Commercial Bank in a rescue.
 1993: PNB acquired New Bank of India which the nationalized in 1980.
 1998: PNB set up a representative office in Almaty, Kazakhstan.
 2003: PNB took over Nedungadi Bank, author of Kundalatha, one of the earliest
novels in Malayalam, had established the bank in 1899. It was incorporated in
1913, and in 1965 had acquired selected assets and deposits of the Combatore
National Bank. At the time of the merger with PNB, Nedungadi Bank‟s shares
had zero value, with the result that its shareholders received no payment for their
shares. Some of PNBs esteemed customers MAHATMA GANDHI, PANDIT
JAWAHARLAL NEHRU, LAL BAHADUR SHASHTRI.
AT PRESENT
 One of the top three banks in India.
 Ranked among world‟s top 400 banks by “the banker ‟‟ London.
 Consistent profit record for the last 114 years of service.
THEIR MISSION
 Customer service and product innovation tuned to diverse needs of individuals
and corporate clientele.
 Continuous technology up gradation while maintaining human values.
 Progressive globalization and achieving international standards.
 Efficiency and effectiveness built on ethical practices.

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CORE VALUES
o Customer satisfaction through
 Providing quality service efficiently and effectively
 Periodic customer service audit
o Success through Teamwork, Integrity and People.
2.2 Growth and Development
With over 38 million satisfied customers and 4668 offices, PNB has continued to retain
its leadership position among the nationalized banks. The bank enjoys strong
fundamentals, large franchise value and good brand image. Besides being ranked as one
of India's top service brands, PNB has remained fully committed to its guiding principles
of sound and prudent banking. Apart from offering banking products, the bank has also
entered the credit card & debit card business; bullion business; life and non-life insurance
business; Gold coins & asset management business, etc.
Since its humble beginning in 1895 with the distinction of being the first Indian bank to
have been started with Indian capital, PNB has achieved significant growth in business
which at the end of March 2009 amounted to Rs 3,64,463 crore. Today, with assets of
more than Rs 2,46,900 crore, 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).During the FY 2008-09, with 39% share of
low cost deposits, the bank achieved a net profit of Rs 3,091 crore, maintaining its
number ONE position amongst nationalized banks. Bank has a strong capital base with
capital adequacy ratio as per Basel II at 14.03% with Tier I and Tier II capital ratio at
8.98% and 5.05% respectively as on March‟09. As on March‟09, the Bank has the Gross
and Net NPA ratio of only 1.77% and 0.17% respectively. During the FY 2008-09, its‟
ratio of priority sector credit to adjusted net bank credit at 41.53% & agriculture credit to
adjusted net bank credit at 19.72% was also higher than the respective national goals of
40% & 18%.

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Balance Sheet ------------------- in Rs. Cr. -------------------
Mar '07 Mar '08 Mar '09 Mar '10 Mar '11
12 mths 12 mths 12 mths 12 mths 12 mths
Capital and Liabilities:
Total Share
Capital
315.30 315.30 315.30 315.30 316.81
Equity Share
Capital
315.30 315.30 315.30 315.30 316.81
Share
Application
Money
0.00 0.00 0.00 0.00 0.00
Preference
Share
Capital
0.00 0.00 0.00 0.00 0.00
Reserves 9,826.31 10,467.35 12,824.59 15,915.63 19,720.99
Revaluation
Reserves
293.85 1,535.70 1,513.74 1,491.99 1,470.76
Net Worth 10,435.46 12,318.35 14,653.63 17,722.92 21,508.56
Deposits 139,859.67 166,457.23 209,760.50 249,329.80 312,898.73
Borrowings 1,948.86 5,446.56 4,374.36 19,262.37 31,589.69
Total Debt 141,808.53 171,903.79 214,134.86 268,592.17 344,488.42
Other
Liabilities &
Provisions
10,178.51 14,798.23 18,130.13 10,317.69 12,328.27
Total 162,422.50 199,020.37 246,918.62 296,632.78 378,325.25

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Liabilities
Assets
Cash &
Balances
with RBI
12,372.03 15,258.15 17,058.25 18,327.58 23,776.90
Balance with
Banks,
Money at
Call
3,273.49 3,572.57 4,354.89 5,145.99 5,914.32
Advances 96,596.52 119,501.57 154,702.99 186,601.21 242,106.67
Investments 45,189.84 53,991.71 63,385.18 77,724.47 95,162.35
Gross Block 2,247.74 3,699.64 3,930.36 4,215.21 4,981.60
Accumulated
Depreciation
1,237.92 1,384.12 1,533.25 1,701.74 1,876.01
Net Block 1,009.82 2,315.52 2,397.11 2,513.47 3,105.59
Capital Work
In Progress
0.00 0.00 0.00 0.00 0.00
Other Assets 3,980.80 4,380.84 5,020.20 6,320.07 8,259.42
Total Assets 162,422.50 199,020.36 246,918.62 296,632.79 378,325.25
Contingent
Liabilities
52,884.89 80,606.88 79,270.65 68,124.47 101,465.73
Bills for
collection
21,815.59 23,448.99 31,941.43 33,215.78 37,449.53

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Book Value
(Rs)
321.65 341.98 416.74 514.77 632.48
Cash Flow ------------------- in Rs. Cr. -------------------
Net Profit Before Tax 2169.13 3295.91 4766.92 5904.78 6563.72
Net Cash From
Operating Activities
-
10144.34
1756.13 2105.16 1835.99 8045.67
Net Cash (used
in)/from
Investing Activities
-159.41 -444.46 -395.84 -409.41 -1083.66
Net Cash (used
in)/from Financing
Activities
1157.57 1873.54 873.11 633.84 -744.36
Net
(decrease)/increase
In Cash and Cash
Equivalents
-9146.17 3185.21 2582.42 2060.42 6217.65
Opening Cash & Cash
Equivalents
24791.69 15645.52 18830.72 21413.14 23473.56
Closing Cash & Cash
Equivalents
15645.52 18830.72 21413.14 23473.56 29691.21

26
2.3 Present Status of the Organization
PNB has always looked at technology as a key facilitator to provide better customer
service and ensured that its „IT strategy‟ follows the „Business strategy‟ so as to arrive at
“Best Fit”. The bank has made rapid strides in this direction. Along with the achievement
of 100% branch computerization, one of the major achievements of the Bank is covering
all the branches of the Bank under Core Banking Solution (CBS), thus covering 100% of
it‟s business and providing „Anytime Anywhere‟ banking facility to all customers
including customers of more than 2000 rural branches. The bank has also been offering
Internet banking services to the customers of CBS branches like booking of tickets,
payment of bills of utilities, purchase of airline tickets etc. Towards developing a cost
effective alternative channels of delivery, the bank with more than 2150 ATMs has the
largest ATM network amongst Nationalised Banks.
With the help of advanced technology, the Bank has been a frontrunner in the industry so
far as the initiatives for Financial Inclusion is concerned. With it‟s policy of inclusive
growth in the Indo-Gangetic belt, the Bank‟s mission is “Banking for Unbanked”. 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. The BC/BF will address the outreach issue while
technology will provide cost effective and transparent services. The Bank has started
several innovative initiatives for marginal groups like rickshaw pullers, vegetable
vendors, diary farmers, construction workers, etc.
The Bank has already achieved 100% financial inclusion in 21,408 villages.
Backed by strong domestic performance, the bank is planning to realize its global
aspirations. In order to increase its international presence, the Bank continues its selective
foray in international markets with presence in Hongkong, Dubai, Kazakhstan, UK,
Shanghai, Singapore, Kabul and Norway. A second branch in Hongkong at Kowloon was
opened in the first week of April‟09. Bank is also in the process of establishing its

27
presence in China, Bhutan, DIFC Dubai, Canada and Singapore. The bank also has a joint
venture with Everest Bank Ltd. (EBL), Nepal.
Future Expansion of the Organization
Under the long term vision, Bank proposes to start its operation in Fiji Island, Australia
and Indonesia. Bank continues with its goal to become a household brand with global
expertise. Amongst Top 1000 Banks in the World, „The Banker‟ listed PNB at 250th
place. Further, 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‟.
2.4 – Functional Departments of the Organisation
Executive cards of the organization. They are Executive
Director, General Manager (GM), Deputy General Managers(DGM), assistant
General Managers(AGM), Chief Managers(CM), Managers and other officers are in the
hierarchy at the head office level functioning in various Departments .
The Zonal Manager and regional Managers head the Zonal Offices
and Regional Officers respectively who are assisted by other down in the hierarchy.
The Branch is headed by AGMCM Senior ManagersManagers depending
upon the size of the Branch activities and rendering of satisfactory customer
service .The bank has a very good system of delegating power to the
different functionaries in the hierarchy to facilitate speedy decision-
making process even up to the branch Level.

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2.5 -ORGANISATION STRUCTURE AND CHART
Bank has its corporate office at New Delhi and 25 zonal offices which in turn supervise
48 regional offices under which the branches function. The delegation of powers is
decentralized up to the branch level to facilitate quick decision-making.
Organizational Structure
Head Office

Zonal Offices (25)

Regional Offices (65)

Branches (5017)

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In the organization where I worked ,its organizational chart as follows:
Senior Manager

Deputy manager

Officer

  
ROUTINE CCO CTO

30
2.6 -Product and Service profile of the Organisation
Saving Account
 PNB Prudent Sweep
 Total Freedom Salary Account
 PNB Vidyarthi Salary Account
 PNB Mitra SF Account
Current Accounts
 Smart Romer
 PNB Vaibhav
 PNB Gaurav
Fixed Deposit Accounts
 Spectrum fixed deposit scheme
 Anupam account
 Multi benefit deposit scheme
 Special fixed deposit scheme
 Recurring deposit scheme
 PNB swecha jama yojna/flexi rd
Credit schemes
 Housing loan
 Car finanace
 Personal loan
 Professional loan
 Educational loan scheme
 Loan against mortgage of property
 PNB financial basket scheme

31
 Personal loan scheme for pensioners
 Privilege card scheme
 Other credit scheme
Social Banking
 Farmers
 Krishi card
 Agriculture credit scheme
 PNB farmers welfare trust
Women
 Scheme for house wife and other women
 Mahila udhyam nidhi scheme
Current Account :The product is aimed at offering Current Account Customers
convenient opportunity to earn extra-returns on surplus funds lying in the accounts which
may not normally be utilized in the near future or are likely to remain un-utilized.
The automated nature of the facility for 'Sweep In or Sweep Out' of more than a lac of
rupees, and creating fixed deposits for desired period, would save lot of operational
hassles and create Customer Value.
Roaming Features: The Customers would be able to operate their 'Current Comfort' at
all other CBS branches of our Bank. It will facilitate transfer of funds as well as much
faster cheque collection services for the customers; simultaneously customers will be able
to withdraw cash from our CBS branches.
Sweep in and Sweep out Features: The Customer shall be able to profitably deploy his
funds which were earlier not attracting any interest. Funds (above Rs. One Lac) lying in
Current Accounts and their ready availability when required for payment/clearance of
cheques. The bank would provide the facility of automatic transfer of balance from
Current Accounts having a balance of over Rs.1,00,000/- (Rupees one lac only) in
multiples of Rs.10,000/- (Rupees Ten Thousand Only) to Fixed Deposit Accounts. Sweep

32
In Funds would be accepted for a minimum maturity period of 15 days and Maximum
maturity period of 45 days. It will be optional for the customers to indicate desired
periodicity in multiples of 15 days. The customer would get the interest on such deposit
at the term deposit rate applicable for the period indicated by him/her.
Additional Features
(subject to maintenance of stipulated 'minimum balance' in the account throughout during
previous quarter i.e. clear balance on the closing of everyday should have been
Rs.25,000/- or above) :
 Free ATM Card;
 Free Debit Card (slated to be introduced by the Bank shortly-publicity on this
aspect will begin only after launch)
 Free remittance of funds up to an extant of Rs. 25000/- per month at any of our
branches having connectivity under CBS.
 One Cheque book of 50 leaves free of cost per quarter to be issued (inclusive of
item no. xii)
 Free e-mails for statement of account on monthly basis
 Same day Credit for outstation cheques drawn on other branches of our Bank
under CBS Connectivity
 Free collection of one outstation cheque (issued in favour of customer) per quarter
upto Rs. 10000/-(however, out of pocket expenses shall be recovered)
 Immediate credit of outstation cheques upto 15,000/-
 25% concession on Annual Custody Charges for Demat Services
 25% concession on service charges for providing EFT Services;
 Transaction i.e. T + 3 Days' Credit for outstation cheques drawn on other bank
branches at locations where we have at least one PNB branch under CBS
connectivity.
If possible, Free Special Cheque Book (under relevant MICR Code) shall also be issued
to customers enabling them to make payment by cheque to outstation parties at CBS
centers

33
PNB VAIBHAV ACCOUNT
Features
Quarterly average balance required Rs.5,00,000/- and above
Initial Deposit Amount required for opening of the account. Rs.5,000/-
Non-maintenance charges Rs.3000/- Qty.
Free (of transaction charges)
Transactions allowed
Unlimited
Transaction charged/L.F. charges Free
Inter sol transfer charges –
Local non-base branches
Free
Inter sol transfer charges-
Outstation non-base branches
Free
Outstation/local-cheques/ Bills, etc. collection charges 50% discount on normal
charges
Free Statement on request. Upto 4 in a month
Statement of Account(e-mail on request) Free on monthly basis
Remittance charges/Drafts issuing, etc. 50% discount on normal
charges.
Standing Instructions Regn. Free
De-mat A/c Charges (except charges to be paid by Ban to
NSDL)
First Year Free
Rebate on Locker Rent (of any size) 50% rebate in locker rent of
one locker
Internet Banking Services Free
Debit-cum-ATM Card Free
RTGS Services 50% concessions on normal
charges.
Personalised Multi-City Cheque Book UNLIMITED
Stop Payment Instruction charges Free
Interest/Balance certificate Free

34
Cash Withdrawals/Deposits charges – at Local Non-Base
Branches, free upto:
Rs.5 lac per day, thereafter
50% discount on normal
charges.
Cash Withdrawals/Deposits charges – at outstation Non-
Base Branches, free upto
charges
Charges on payment of outstation Multicity Cheques, Free
upto
charges.
PNB GAURAV– CURRENT ACCOUNT
Features
Quarterly average balance required Rs.1,00,000/- and above
Initial Deposit Amount required for opening of the
account.
Rs.5,000/-
Non-maintenance charges Rs.1200/- Qty.
Free (of transaction charges)
Transactions allowed
200 in a quarter
Transaction charged/L.F. charges Rs.2/- per transaction beyond 200
transaction.
Inter sol transfer charges –
Local non-base branches
Free
Inter sol transfer charges-
Outstation non-base branches
Upto Rs.50,000/- per day – no
charges, thereafter, 50% discount
on normal charges.
Outstation/local-cheques/ Bills, etc. collection
charges
25% discount on normal charges
Free Statement on request. Upto 2 in a month
Statement of Account(e-mail on request) Free on Quarterly basis
Remittance charges/Drafts issuing, etc. 20% discount on normal charges.
Standing Instructions Regn. 50% concessions on normal

35
charges.
De-mat A/c Charges (except charges to be paid by
Ban to NSDL)
First Year Free
Rebate on Locker Rent (of any size) 25% rebate in locker rent of one
locker
Internet Banking Services Free
Debit-cum-ATM Card Free
RTGS Services 20% concessions on normal
charges.
Stop Payment Instruction charges Free
Interest/Balance certificate Free
Cash Withdrawals/Deposits charges – at
outstation Non-Base Branches, free upto
Rs.50,000/- per day, thereafter 25%
discount on normal charges
Charges on payment of outstation Multicity
Cheques, Free upto
Rs.50,000/-per day, thereafter 25%
discount on normal charges.
2.7- Market Profile of the PNB
With a slowdown and deteriorating asset quality, banks have been treading cautiously by
adhering to prudent lending practices and enhancing their risk management systems.
Punjab National Bank (PNB) has taken advantage of the situation and is increasing its
market share with a focus on maintaining asset quality.
With one of the lowest non-performing assets‟ (NPAs) in the sector, PNB is well
positioned to capitalise on its dominant presence in the growing Indo-gangetic region and
maintain its superior margins. Focus on technology and a wide branch network would
ensure efficiency in operations and robust business volumes.

36
Strong advances
The second largest public sector bank (PSB), PNB has seen its advances (loan portfolio)
grow by an average 25 per cent in the last four years. Strong demand and the bank‟s
willingness to lend has enabled advances to grow at 28.5 per cent in H1 FY09, and at a
scorching 40 per cent in Q3 FY09.
This along with higher interest rates has enabled interest income to grow by around 45
per cent. However, the management has maintained that the advances growth in Q3 was
extraordinary, which would taper to 30 per cent in FY09 and further to around 20-22 per
cent in FY10, which is also healthy.
To its credit, PNB has been prudent in terms of lending to certain sectors. It has slowed
lending to retail (grew by only 15 per cent in Q3), which has led to its share in the overall
loan book fall from 23 per cent in FY08 to 19 per cent now. However, going forward,
PNB would be focusing on educational and home loans (less than Rs 30 lakh) in the retail
space, agriculture, corporate and SME among others.
Matching deposits
Deposits have grown at a healthy pace of 17 per cent (average) during FY05-FY08. With
increasing risk aversion and the tide turning in favour of safer havens, deposit growth of
PSB (29 per cent) have outpaced those of private banks (16 per cent) in Q3. For PNB, its
deposit base, too, grew fast beating past averages (up 24 per cent in H1 FY09 and 29 per
cent in Q3).
The higher interest rate scenario also meant that depositors preferred term deposits over
low-yielding deposits like savings account (CASA; current account and savings account).
Not surprisingly, term deposits have grown impressively at 43 per cent outpacing lower-
cost deposits (grew by 12 per cent).

37
ON A GROWTH TRAJECTORY
in Rs crore FY08 FY09E FY10E
Net Interest income 5,534.0 7,037.0 8,046.0
Non-interest income 1,998.0 2,678.0 2,779.0
Operating profit 4,006.0 5,600.0 6,142.0
Net profit 2,049.0 2,822.0 3,139.0
EPS (Rs) 65.0 89.5 99.6
P/E (x) 6.1 4.4 4.0
P/BV (x) 1.0 0.9 0.8
E: estimates
This trend has seen the share of PNB‟s CASA deposits gradually falling to 37.4 per cent
in Q3 from 43 per cent in Q3 FY08. However, at 37-38 per cent levels, it is the highest
among PSBs. Overall, the management expects deposit growth of 25-26 per cent in
FY09.
Higher margins
Even as the share of low-cost deposits has fallen, the overall net interest margins (NIM)
of PNB have been on the rise in the last few quarters (see Key Ratios). While the cut in
CRR and SLR ratios have provided some cushion, advances to high-yield customers (and
better pricing power) are responsible for the robust margins.
The bank‟s strategy to mobilise bulk deposits (around 36 per cent of term deposits are
bulk deposits), allows PNB to re-price these deposits much faster, thus would cushion
margins in a declining interest rate scenario. Recent cuts in term deposit rates are a
positive, the effect of which would be felt with a lag. Overall, the bank expects to
maintain NIMs of around 3.5 per cent going ahead.

38
Technology edge
PNB has a wide branch network of about 4,600 branches (second largest in the country),
which has enabled it to maintain higher CASA deposits. Importantly, all its branches and
extension counters are fully automated and networked. The technology processes are in
place to take care of 50,000 villages, 100,000 terminals and 150 million customers, and
future demand.
The growing usage of technology has improved productivity over the years, demonstrated
in the improvement in cost-to-income ratio from 58 per cent in FY05 to 38 per cent in Q3
FY09.
The technology usage not only reduces the operating costs, it also helps strengthen
internal risk management practices. For example, information pertaining to any
weakening of a loan account (more than Rs 50 lakh) is promptly passed on to higher
levels and action is taken to recover the money.
This transparency at every level is enabled by the centralised technology platform, thus
ensuring a tab on NPAs. Strong risk management systems and prudent provisioning
norms (83 per cent coverage) has helped PNB keep NPAs at very low levels (0.4 per cent
in Q3).
Investment rationale
Apart from robust growth in fund-based income, the bank‟s other income (which includes
more stable fee-based income) has grown at a healthy pace. In Q3 it almost doubled on
the back of a 155 per cent rise in treasury income, which is unlikely to be sustained in Q4
as bond yields are up. Nevertheless, expect other income growth to be stable, driven by
strong growth in fee-based income.
While an extensive branch network should continue to aid PNB to deliver robust business
growth, the relatively high CASA ratio should ensure better NIMs, compared to its peers.

39
The technology initiatives along with prudent lending practices would also help towards
keeping costs under check and maintain asset quality.
While PNB also holds 74 per cent in PNB Gilts and 30 per cent in Principal PNB Mutual
Fund, any progress over the IPO of UTI AMC (PNB holds 25 per cent stake) could rub
off positively on the stock. At Rs 399, the stock is available at a P/BV of 0.8 and can
deliver 18-21 per cent in a year‟s time.

40
CHAPTER3:
DISCUSSIONS ON TRAINING
.

41
3.1 Student’s Work profile, Tools and Techniques Used
 To have a detail study on banking system in India.
 To have a detail study on different product and services offered by PNB.
 To know detail study of different scheme under current account.
 Compare current account of PNB with different banks like AXIS bank, SBI bank
and other private bank..
TOOLS AND TECHIQUES
 Sample Survey
 Questionnaire
3.2 Key Leanings
Punjab National Bank bas a great learning experience for me and in the due course of my
project I found out that the consumers go for the Punjab National Bank for a status
symbol and not merely for baking process. It‟s a prestigious issue for the customers that
they hold Punjab National Bank account and so the bank should try and meet it‟s
commitment and keep the faith of the customers.
Punjab National Bank should maintain good relationship with it‟s customers like
providing reliable “After Sale” services so that the customers can build their faith in the
bank and bring in more references to join the Punjab National Bank.
 Today facilities like ATM, internet banking, phone banking, etc. are really important
and necessary for the customers.
 PNB hold a good proportion of consumers in the market.
 22% of the samples hold their account in the PNB.
 People prefer banking services in deciding of the bank.

42
Chapter 4
STUDY OF SELECTED RESEARCH PROBLEM

43
4.1 STATEMENT OF RESEARCH PROBLEM
 To weed out unviable projects from obtaining bank finance to provide objective
feedback to the competent authority for taking a Considered Decision.
 To know the type of Current account preferred by people.
 To know about the experience of customers by the current bankers
 To know all the factors influencing choice of banking
 The Appraisal also signifies the present state of affairs of industry, demand &
supply, marketing scenario, Regulatory requirements as well as national &
International state of affairs of that particular product/ industry.
 The Appraisal also signifies a proper format in which any credit & project
appraisal to be placed before the final decision takers.
MANAGERIAL USEFULNESS OF THE STUDY
 To study Impact on increase in level of savings and income distribution in society
and standard of living.
 The study provides a complete knowledge of various fundamental concept related
to services provided by the bank.
 The study helps in finding the weaknesses, if any in the services and the steps
taken to avoid them.
 The suggestions to the Branch Managers will help management to make changes
in the desired field.
4.2 STATEMENT OF RESEARCH OBJECTIVE
This project is a compilation of the work that is taken up by a financial Institution while
financing an industrial project. The basic theme of the study is:
 To check the awareness about ATM AND Internet banking facility.

44
 To know the problem which people are facing from these services.
 To know about the experience of customers by the current bankers.
 To know all the factors influencing choice of banking.
 Familiarization with the services provided by PNB.
 To study the features of modern banking which will give a good idea of various
products and services offered by today‟s bank and understand the latest banking
concepts.
SCOPE
 Scope of the study is to collect information regarding the account opening and
ATM facility provided by the bank
 To analyze the level of satisfaction of the customer in respect to the services.
 To know how many people prefer banking with the bank.
4.3 RESEARCH DESIGN AND METHODOLOGY
The study adopted in the project is exploratory that makes use of sample amount of data
to arrive at the conclusions. It does so by paying equal attention to both quantitative as
well as qualitative data. This data is of extreme help as almost all the steps of the study
are dependent on the reliability & accuracy of this data. Care has been taken to; ensure
that these figures are foolproof.
Data used to analysis the services in PNB was of primary and secondary .The primary
data has been collected through questionnaires. The secondary source included brochures,
annual reports, magazines, employee‟s handbook, magazines and journals.

45
DATA SOURCES
Primary Data:
It is a fresh data which is collected by the researcher himself. The primary data that I
collected were the first hand information, which I received through personal interviews
with the consumers and through questionnaires. This data gave the most vital information
for making my analysis of the prevailing banking behavior of the consumers
Secondary Data:
It is data which is already present in the records and is collected by someone else.
Secondary data involved in my research were the information that I collected through the
Punjab National Bank‟s Internet service and through the various brochures and pamphlets
of the bank.
Questionnaire Design
Questionnaires are one of the most important and commonly used research instruments to
collect primary data.
It is self-administered process whereby the respondent himself reads the questions and
records his answers without the assistance of an interviewer
Multiple choice questions were asked from the interviewer as it consumes less time and
gives us the exact answers. The main objective of choosing such question was to extract
the clear picture from the customers like what they actually expect from a good banking
system.
TOOLS:-
 Pie chart
 Bar diagram
 Text and statements

46
SAMPLE DESIGN
 Sample element: The members selected from the population for doing the survey
constitute the sampling element. A sample of 50 customers was taken as a sample
element.
 Extent: The survey was conducted in the Delhi region only.
 Time frame: Total time duration for the survey took almost two months.
 Sample size: 50 was the sample size of the survey.
LIMITATIONS
As said a basic research was conducted at the bank to assess how far that customers are
satisfied with products and services of PUNJAB NATIONAL BANK, Delhi. During the
course of the study the following limitation were observed:
 The method will be unsuitable if the number of people to be surveyed is very less as it
will be difficult to draw logical conclusions regarding the satisfaction level of
customers.
 Interpretation of data may vary from individual depending on the individual
understanding of the product features and services of the bank.
 The method lacks flexibility. Incase of inadequate or incomplete information the
results may deviate.
 Since all the financial products and services are not widely used by all the customers
it is difficult to draw realistic conclusions based on the survey.
 It is very difficult to check the accuracy of the information provided.

48
My analysis is based primarily on the information collected through 50 questionnaires. A
copy of the questionnaires that was used has been attached in the appendix.
5.1- Analysis of the Data :
A survey On Customer Satisfaction In Banking Service
Q. Do you think that your bank caters all your banking needs?
(a) Yes (b) No
 More than 75% Of the customer are satisfy with the services
figure 1
Needs

49
Q. What kind of account do you maintain in this bank?
(a)Current (b)Savings (c)Loan a/c (d)Demat (e)Credit card
 50% of the Customer are having saving account
 30% of the Customer are having current account
 10% of the Customer are having Loan account
 5% of the Customer are having Demat account
 5% of the Customer are having Credit Card
Figure 2
Accounts
Saving account
current account
loan account
demat account
credit card

50
Q. Which of the following facilities is given more importance in your bank
(a)Loan facilities (b)O/D facilities (c)ATM facilities
figure3
Q. Does your bank have core banking facility for the customers
(a) Yes (b) No
 More than 90% of the customer are saying that the current bank is providing the
core banking. By core banking the can make the banking easy.
Q. Do they charge unnecessarily for not maintain minimum balance in
your account
(a) Yes (b) No
 More than 75% of the customer are saying that the bank charge unnecessarily for
the maintenance of the minimum balance
Q. Do you think your bank offers competitive interest rate
(a) Yes (b) No
facilities
loan
O/D
ATM

51
 In the current time the PNB is providing highest rates on interest under several
scheme
Q. Do you use the service of alternative bank
(a) Yes (b) No
 More than 30% of the customer are using the services of the alternative bank.
Q. What do you feel about overall service quality of your
bank.
(a)Excellent (b)very good (c)good (d)average (e)poor
figure4
Q. Would you recommend this bank to your friends, relatives,
associates
(a) Yes (b) No
 Yes most of the people will recommend this bank to their friends, relatives,
associates
services
excellent
very good
good
average
poor

52
Q. When do you think of your bank what comes first in your mind
(a)Personalised service (b)Wide branch network (c)Customer
service (d)computerised banking (e)Core banking
figure 5
service
Personalised
wide branch
customer service
computerised banking
core banking

53
Q. Facilities provided on Current Account ?
Through this survey it has been analyses that the bank is provided different services and
the customer needs all of the services at different stages for example this chart shows that
Interest ,Cheque book, Internet banking and RTGS/NEFT are very important and all
other are average and not important.
SERVICES NOT IMPORTANT AVERAGE VERY IMPORTANT
Interest Facility Y
Free e-mail statement Y
Discount on Service
charges
Y
Standing instruction Y
Outstation cheque
collection
Y
50 leaves cheque
book free per quarter
Y
Nomination facility Y
Free internet banking Y
Free debit card Y
RTGS/NEFT
available
Y

54
5.2 – Summary of Finding
Punjab National Bank gave me a great opportunity to explore the banking sector in the
economy. It really does have a lot of positive aspect, which are so lucrative that anybody
would be attracted towards having a deposit with the Bank.
Still I feel that are some areas where Punjab National Bank have to improve upon to have
the complete faith of the consumers. These areas are highlighted as:
 Punjab National Bank seems to have been concentrating more on numbers (the
numbers of deposits) specially saving / current account that they can produce and in
the process the “After Sale” services has lagged behind.
 The sales term has gone far ahead of the customers care unit and so Punjab National
Bank have to do something to improve the services that they provide to the customer.
 The customer satisfaction is not there. Once an account is opened, many a time they
are considered as permanent and the customer services is relaxed. The bank should
remember that a single satisfied customer could be a great help in bringing in new
accounts for the bank by giving reference.
 There are so many PNB‟s ATM‟s. A customer feels proud in visiting their own banks
ATM. It‟s all right that PNB account holder can access their account through other
banks ATM as well, but that appeal of belongingness does not exist when a customer
goes into other banks ATM. The customer feels proud of Punjab National Bank
account, its hottest brand name and they want other people to see them enter into a
Punjab National Bank ATM to access their account and so the management should
try and increase the number of PNB‟s own ATM centers, especially in and around
cinema halls like PVR, shopping complexes etc.
 Fixed deposit rates have goes down very much; PNB should create some mechanism
to bring about some kind of stability in the interest rates.

55
Chapter-6
SUMMARY AND CONCLUSION

56
6.1- Summary of Learning Experience
Punjab National Bank gave me a great opportunity to explore the banking sector in the
economy. It really does have a lot of positive aspect, which are so lucrative that anybody
would be attracted towards having a deposit with the Bank.
Still I feel that are some areas where Punjab National Bank have to improve upon to have
the complete faith of the consumers. These areas are highlighted as:
 Punjab National Bank seems to have been concentrating more on numbers (the
numbers of deposits) specially saving / current account that they can produce and in
the process the “After Sale” services has lagged behind.
 The sales term has gone far ahead of the customers care unit and so Punjab National
Bank have to do something to improve the services that they provide to the customer.
 The customer satisfaction is not there. Once an account is opened, many a time they
are considered as permanent and the customer services is relaxed. The bank should
remember that a single satisfied customer could be a great help in bringing in new
accounts for the bank by giving reference.
 There are so many PNB‟s ATM‟s. A customer feels proud in visiting their own banks
ATM. It‟s all right that PNB account holder can access their account through other
banks ATM as well, but that appeal of belongingness does not exist when a customer
goes into other banks ATM. The customer feels proud of Punjab National Bank
account, its hottest brand name and they want other people to see them enter into a
Punjab National Bank ATM to access their account and so the management should
try and increase the number of PNB‟s own ATM centers, especially in and around
cinema halls like PVR, shopping complexes etc.
 Fixed deposit rates have goes down very much; PNB should create some mechanism
to bring about some kind of stability in the interest rates.

57
6.2 – Conclusion and Recommendations
Conclusion
The project study selected was to study the features of various products of Punjab
National Bank as well as comparison with SBI Bank, AXIS Bank etc as well as to
analyze and evaluate the customer satisfaction and awareness towards the account they
are maintaining with Punjab National Bank. The analysis of the data collected and its
interpretation revealed the information regarding the satisfaction of the customers
towards the products and services and also their awareness regarding the benefits of
having relationship with Punjab National Bank.
One of the corporate visions of Punjab National Bank is to serve their customers
in the most efficient manner and to gain maximum consumer satisfaction. With cut-throat
competition in the industry, almost all banks try provide same service. Thus the company
should focus on providing the customers with added benefits to gain maximum
satisfaction.
The study undertaken helped to obtain suggestions for improvement of product and
services, it also helped is finding out the satisfaction level of the account holders. The
study also showed that most of the people are approached by the staff of Punjab national
Bank regarding opening of account.
Also, most of the customers are aware of the benefits of having an account is PNB
however objective of a salary account holder may be different from a priority customer or
a normal account holder. A considerable number of customers are satisfied with the
presence of number of PNB branches as well as ATM in Delhi.
Creating and keeping a portfolio of customer up to date will help the company know
where to focus heir marketing, sales and support and product development efforts? It will
also helps in designing more customer centric products.
The study conducted on customer satisfaction towards Punjab National Bank deposits
reveals a lot of useful information which can help the marketing managers to frame future
policies accordingly and work towards improving the performance and acceptance its
product and services.

58
Recommendations
1. Punjab National Bank should concentrate more on advertising and publicity of its
products.
2. Punjab National Bank should create awareness the customers about the various
benefits of having an account in this bank.
3. Good customer relationship should be maintained and suggestions from
customers may be taken from to time so as to improve the product features and
service.
4. Some respondents have complained that the Punjab National Bank do not intimate
the customer after debiting the charges. The bank should avoid such
inconvenience to customers in the future. There should be proper communication
between the customer and the bank and should be clear about the charges.
5. Punjab National Bank should be open new branches at prime location and not to
forget remote areas which are still untapped.
6. In case of Normal savings account and Salary power, instead of giving quarterly
statement, bank should give the statement, bank should give the statement
fortnightly so that customer does not have to wait for 3 months every time. And
dispatch of the statement should be on time. Delay causes inconvenience to
customers.
7. Punjab National Bank should be more aggressive in promoting their products.
8. Bank should be in regular touch of the customers so that they can develop a feeling
that Punjab National Bank is taking care of all their banking needs.
9. Existing customers should be communicated properly about any new products or
facility. Mode of communication could be either telephone or through SMS, mail or
through letter.
10. Maximum people having accounts in PNB are still not aware of the financial advisory
services. Bank should make them aware and encourage them to take the advice. It will
not only help the customer earn some more money but it will also strengthen the
relationship between the customer and the bank and of course it will help bank earn
customers loyalty the bank and of course it will help bank earn customers loyalty.

59
11.Comparing the satisfaction level of Current account holder regarding the behavior
of employees they interact with in bank with that of normal account holder and it is
much less.
12. Punjab National Bank should reintroduce Students account. Today almost all banks
have student account facility. Students are good source of advertisement, especially
through „word of mouth‟. Giving them good service will not only help in earning their
loyalty but will also help in increasing the customer base. These students may become a
loyal customer and may be a priority customer in the future and give good business to the
bank in terms of number and volume.
SOME MORE SUGGESTIONS
In the period 60 days of my internship, I personally deal with the:
 Current account
Several times I face many difficulties during my work. So, some majors should be taken
to improve the marketing strategy of this bank. As per my experience I am suggesting
some points for that.
 First of all I like to say about the promotion. It has a vital role to sale any type of
products.
PNB should improve its promotional strategy. Some more advertisement in
electronic media and in print media should be given. Apart from that other
promotional tactics like billing, distributing pamphlets, colorful brochures etc. should
be distributed among the customers.
And those promotional majors should be lucrative.
 For processing loan, cooperation between branch and Hub should be improved.
 In case of O/D scheme I face a problem regarding the guarantor. Many customers
became uninterested after knowing that a guarantor should be needed for the loan.
So, for O/D scheme PNB should think about this point.

61
A survey On Customer Satisfaction In Banking Services
1.Name:
2.Address:
3.Occupation:
4.AnnualIncome:
5.NameofyourBank:
6. Do you think that your bank caters all your banking needs?
(a) Yes (b) No
7. What kind of account do you maintain in this bank?
(a)Current (b)Savings (c)Loan a/c (d)Demat (e)Credit card
8. Which of the following facilities is given more importance in your bank
(a)Loan facilities (b)O/D facilities (c)ATM facilities
9. Does your bank have core banking facility for the customers
(a) Yes (b) No
10. Do they charge unnecessarily for not maintain minimum balance in
your account
(a) Yes (b) No
11. Do you think your bank offers competitive interest rate

62
(a) Yes (b) No
12. Do you use the service of alternative bank
(a) Yes (b) No
13. What do you feel about overall service quality of your
bank.
(a)Excellent (b)very good (c)good (d)average (e)poor
14. Would you recommend this bank to your friends, relatives,
associates
(a) Yes (b) No
15. When do you think of your bank what comes first in your mind
(a)Personalised service (b)Wide branch network (c)Customer
service (d)computerised banking (e)Core banking

63
16. Facilities provided on Current Account ?
Signature:
Date:
SERVICES NOT IMPORTANT AVERAGE VERY IMPORTANT
Interest Facility
Free e-mail statement
Discount on Service
charges
Standing instruction
Outstation cheque
collection
50 leaves cheque book
free per quarter
Nomination facility
Free internet banking
Free debit card
RTGS/NEFT available

67
Awards
Awards & Achievements of Punjab National
Bank in Recent Times
PNB Awarded SKOCH
Challenger Award 2011 on Financial
Inclusion
Punjab National Bank declared winner of"SKOCH
Challenger Award on Financial Inclusion". Sh. M.V.
Tanksale and Shri Rakesh Sethi, EDs, PNB receiving
award from Dr. C Rangarajan, Chairman of the Prime
Minister's Economic Advisory Council, at a
function held at New Delhi.
PNB Awarded Best Technology
Bank 2010
Punjab National Bank declared winner of"Best
Technology Bank 2010". Sh. M.V. Tanksale, ED, PNB
and Sh. Ajay Misra, GM, PNB receiving award from
Hon’ble Ex-President of India Sh. A.P.J Abdul
Kalam at the Banking Technology Conference held at
Mumbai.
PNB AWARDED GOLDEN
PEACOCK AWARD FOR TRAINING
PRESS RELEASE
PNB declared winner of the Golden Peacock Awards
for Training. Smt. Sushma Bali, GM and Sh. J.P.
Kapoor, DGM, PNB receiving award from Hon'ble Sh. K
Sankaranarayanan, Governor of Maharashtra and Sh.
P.N. Bhagwati Ex-Chief Justice of India.
PNB AWARDED NIRYAT BANDHU
BRONZE TROPHY
PRESS RELEASE Hindi
PRESS RELEASE English
Sh. K.R.Kamath, CMD, PNB receiving Niryat Bandhu
Award from Hon’ble Sh. Jyotiraditya Scindia, Minister
of State for Commerce and Industry. Seen in the
picture is Sh. S.K.Dubey, GM, PNB.
PNB Received Excellent
Performance in Lending Under
PMEGP Scheme award
Sh. Nagesh Pydah, Executive Director, PNB receiving
'excellent performance in lending under PMEGP
scheme' award from Sh. Dinsha Patel, MoS
(Independent Charge) and Sh. Dinesh Rai, Secretary,

68
SME PRESS RELEASE Hindi
MSME PRESS RELEASE
Ministry of Micro, Small & Medium Enterprises.
K,R.Kamath, CMD, PNB is receiving
the Best Bank Award
at Hyderabad from Shri D. Subbarao, Governor, RBI .
Dr. K.C. Chakrabarty, Dy. Governor, RBI, Mr. Samba
Murthy, Director, IDRBT, Mr. S Ganesh Kumar, CGM,
IDRBT and Mr. Ajay Misra, GM, PNB are also seen in
the photograph.
Outlook Money Award 2010
Outlook Money Award for the year 2010 for "Best
Home Loan Provider"
Outlook Money Award 2010
Outlook Money Award for the year 2010 for
"Best Education Loan Provider"
2nd prize of Indira Gandhi
Rajbhasha Shield by Dept. of Indian
Official Language, Ministry of Home
Affairs, GOI
for promoting Hindi for the year 2008-09.
Gold trophy of SCOPE Meritorious
Award for Excellence in Corporate
Governance in 2009
By Standing Conference of Public Enterprises.
5th Social and Corporate
Governance Award Under the
Category of "Best Corporate Social
Responsibility Practice"
By Bombay Stock Exchange for 2010
Skoch Awards 2010 for
"Computerisation of RRBs"
By Skoch for 2010
Global HR Excellance Award 2010
for the outstanding Contribution to
the cause of Education
World HRD Congress
Asia Best Employer Brand Award"
for Excellence in Training
By World HRD Congress for 2010
Award for Brand Excellance" under
Banking & Financial Services
By CMO Asia for 2010
"CSR Excellence Award 2010" By ASSOCHAM
Skoch Challenge Award 2010
For Livelihood Linkage of the milk producers in
Bulandshahr District, Uttar Pradesh
Best use of Technology for
Financial Inclusion for 2009-10.
By IDRBT.
Best Employer Brand Award
Regional Round Award Winners-
Indore
By Employer Branding Institute, India

69
BIBLIOGRAPHY
BOOKS:
 Financial management- C.R. Kothari
 Fundamental of financial management- C.B. Gupta
 Marketing management- C.B. Gupta
MAGZINES:
 Business world
 India today
WEBSITES:
 www.pnbindia.com
 http://www.answes/pnb.com
 www.rupeetalk.com
 http://www.google.com

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