Study on Retail Banking Transformations in India - PNB

Study on retail banking transformations in India 1 | P a g e
Summer Internship Project Report on
“Study on retail banking transformations in India”
For the partial fulfillment of the requirement for the award of
Master of Business Administration
By
Ravi Kumar
16GSOB201055
MBA 2016-18
Under the guidance of
Mr. Mohit Varshney Dr. Ramarcha Kumar
Manager Credit Associate Professor
Punjab National Bank SOB, Galgotias University
Date
25-June-2017

Summer Internship Project Report on
“Study on retail banking transformations in India”
For the partial fulfillment of the requirement for the award of
Master of Business Administration
By
Ravi Kumar
16GSOB201055
MBA 2016-18
Date
25-June-2017

Certificate of Approval
The following Summer Internship Project Report titled "Study on retail banking
transformations in India" is hereby approved as a certified study in management carried out
and presented in a manner satisfactory to warrant its acceptance as a prerequisite for the award of
Master of Business Administration for which it has been submitted. It is understood that by
this approval the undersigned do not necessarily endorse or approve any statement made, opinion
expressed or conclusion drawn therein but approve the Summer Internship Project Report only
for the purpose it is submitted to the Summer Internship Project Report Examination Committee
for evaluation of Summer Internship Project Report
Name Signature
1. Faculty Mentor Dr. Ramarcha Kumar ___________________
2. Industry Mentor Mr. Mohit Varshney ___________________

Certificate from Summer Internship Project Guides

Executive Summary
This is an attempt to know how the classroom theories can be applied to the practical situation.
As a student of MBA it is a part of study for everyone to undergo summer internship at some
organization. So for this purpose, I got an opportunity to do my summer internship at Punjab
National Bank. In this is comprehensive report, I have discussed about every major aspect of the
company which I have observed and perceived during my internship tenure. The first part
comprises the detail about the company from the time of its incorporation to the current position.
Along with its processes, policies and procedures. During my internship programmed i have
mainly worked in retail banking, General banking & Finance. All the departments have been
discussed in detail. T he main purpose of the internship is to learn by working in practical
environment and to apply the acquired during the studies in a real world scenario in order to
tackle the problems using the knowledge and skill learned during the academic process. This
report covers many important aspects which are related with operations and financial aspect of
the bank. In the end the learning and observations which I have undergone during my internship
project. This report also contains my perceptions, motivation level and the working environment
of the organization.

ACKNOWLEDGEMENT
This Project is not a singular effort. It has been made possible though guidance & help from
different quarters. I wish to acknowledge & experience allowed them to make valuable
suggestion for developing this project.
My deep sense of gratitude & appreciation to the respected guide Mr. . Mohit Varshney
, Training Manager for providing full support at every stage of my project report.
My Sincere thanks to my college and professors who gave me chance to work on this live
project.
Most important, I deeply thank my parents who supported me the most in doing this summer
internship training.

DECLARATION
I, RAVI KUMAR, Admission no.- 16GSOB201055, student of MBA of School of Business:
Galgotias University, Greater Noida, hereby declare that the project report on “ STUDY ON
RETAIL BANKING TRANSFORMATIONS IN INDIA BY PNB ” is an original and
authenticated work done by me. The project was of 45 days duration and was completed between
22th May, 2017 to 5th July, 2017.
I further declare that it has not been submitted elsewhere by any other person in any of the
institutes for the award of any degree or diploma.
Name of the student: RAVI KUMAR
Date:

PREFACE
On the partial fulfillment of the Master of Business Administration, at Galgotias university,
Greater Noida. In its broadest sense project report is necessary to make the students of business
College familiar with the industrial environment prevailing in the world. The Project is to break
the nut shell of the students, i.e. to make the students competitive and work aggressive. Students
need to know the policies, procedures and the trends going on in the present industrial world

Table of contents:
Particulars No of pages
Company profile 12 - 40
Internship profile 41 - 48
Key Observations 49 - 50
Learning and Value addition 50 – 51
Best Practices and Bench Mark study 52 – 58
Recommendation and Suggestions 59 – 68
Bibliography 69

CONTENTS
1. Company Profile
1.1Company Logo & relevant picture, if any
1.2 Company Mission & Vision.
1.3 History of company in brief.
1.4 Brief description of particular industry sector in which the company falls i.e. Automobile,
Construction, Information technology, education, FMCG, Telecommunication etc.
1.5 Different locations of operations (manufacturing plants/ head office/ regional office/ retail stores
etc.)
1.6 Range of company products/services
1.7 Size (in terms of manpower) & ROI of the company.
1.8 Market share and positions and competitors of the company in the industry.
1.9 SWOT analysis of the company.
1.10 Balance Sheet of the company (current year /previous year)-Optional
2. Internship profile:
2.1 Details of Industry mentor- Name, Designation, Department, Location, Contact email- ID, Phone
2.2 Location of Internship
2.3Detail of Task – Type ( Field/desk), Group/individual
2.4Time Frame- Start Date, completion date, Gantt chart (Project Chart Line), Weekly status (See
Appendix 15)
2.5 Summer Internship Feedback Form (See Appendix -13 – to be filled by the Industry Mentor)
3. Key Observations:
3.1 Work description- It includes the proper understanding of the work assigned to him/her as well as
the implementation of the work in practice.
3.2 Practices followed-A detailed explanation of the practices followed in the execution of the work
in the company.
3.3 Key Challenges faced while doing the task- The student should also describe the challenges faced
and actions taken while performing the task assigned to him/her.

4. Learning & Value Addition: should include
4.1 Major Learning during their SIP tenure
4.2 Difference between practical exposure and theoretical concepts studied in classroom
4.3 Usefulness of internship with future perspective
5. Best practices and benchmark study-
5.1Major Companies in the respective industry sector.
5.2 Market share of each company in the same industry sector.
5.3 Growth & Opportunities in the respective industry sector.
6. Recommendations & Suggestions:
The suggestions which you would like to give to company related to :
6.1 The business function where he/she has worked.
6.2 Modify the existing methods/ process /procedure to manage respective business function.
7. Bibliography

1. Company Profile:
1.1 Bank’s logo:
1.2 Mission and Vision:
Mission:
"Creating Value for all its customers, Investors and Employees for being the first choice for all
stakeholders"
Vision:
"To position PNB as the `Most Preferred Bank` for customers, the `Best Place to Work In` for
employees and a `Benchmark of Excellence` for the industry"

1.3 History of Company in brief:
Punjab under the British especially after annexation in 1849 witnessed a period of rapid
development giving rise to a new educated class fired with a desire for freedom from the yoke of
slavery. Amongst the cherished desires of this new class was also an overriding ambition to start
a Swadeshi Bank with Indian Capital and management representing all sections of the Indian
community. The idea was first mooted by Rai Mool Raj of Arya Samaj who, as reported by Lala
Lajpat Rai, had long cherished the idea that Indians should have a national bank of their own. He
felt keenly "the fact that the Indian capital was being used to run English banks and companies,
the profits accruing from which went entirely to the Britishers whilst Indians had to contend
themselves with a small interest on their own capital".
At the instance of Rai Mool Raj, Lala Lajpat Rai sent round a circular to selected friends
insisting on an Indian Joint Stock Bank as the first special step in constructive Swadeshi. Lala
Harkrishan Lal who had returned from England with ideas regarding commerce and industry,
was eager to give them practical shape.
`PNB was born on May 19, 1894. The founding board was drawn from different parts of India
professing different faiths and a varied back-ground with, however, the common objective of
providing country with a truly national bank which would further the economic interest of the
country.
The Bank opened for business on 12 April, 1895. The first Board of 7 Directors comprised of
Sardar Dayal Singh Majithia, who was also the founder of Dayal Singh College and the Tribune;
Lala Lalchand one of the founders of DAV College and President of its Management Society;
Kali Prosanna Roy, eminent Bengali pleader who was also the Chairman of the Reception
committee of the Indian National Congress at its Lahore session in 1900; Lala Harkishan Lal
who became widely known as the first industrialist of Punjab; EC Jessawala, a well known Parsi
merchant and partner of Jamshedji & Co. of Lahore; Lala Prabhu Dayal, a leading Rais,
merchant and philanthropist of Multan; Bakshi Jaishi Ram, an eminent Civil Lawyer of Lahore;
and Lala Dholan Dass, a great banker, merchant and Rais of Amritsar. Thus a Bengali, Parsi, a
Sikh and a few Hindus joined hands in a purely national and cosmopolitan spirit to found this
Bank which opened its doors to the public on 12th of April 1895. They went about it with a
Missionary Zeal. Sh. Dayal Singh Majithia was the first Chairman, Lala Harkishan Lal, the first
secretary to the Board and Shri Bulaki Ram Shastri Barrister at Lahore, was appointed Manager.
A Maiden Dividend of 4% was declared after only 7 months of operation. Lala Lajpat Rai was
the first to open an account with the bank which was housed in the building opposite the Arya
Samaj Mandir in Anarkali in Lahore. His younger brother joined the Bank as a Manager.
Authorised total capital of the Bank was Rs. 2 lakhs, the working capital was Rs. 20000. It had
total staff strength of nine and the total monthly salary amounted to Rs. 320.

The first branch outside Lahore was opened in Rawalpindi in 1900. The Bank made slow, but
steady progress in the first decade of its existence. Lala Lajpat Rai joined the Board of Directors
soon after. in 1913, the banking industry in India was hit by a severe crisis following the failure
of the Peoples Bank of India founded by Lala Harkishan Lal. As many as 78 banks failed during
this crisis. Punjab National Bank survived. Mr. JH Maynard, the then Financial Commissioner,
Punjab, remarked...."Your Bank survived...no doubt due to good management". It spoke volumes
for the measure of confidence reposed by the public in the Bank`s management.
The years 1926 to 1936 were turbulent and loss ridden ones for the banking industry the world
over. The 1929 Wall Street crash plunged the world into a severe economic crisis.
It was during this period that the Jalianwala Bagh Committee account was opened in the Bank,
which in the decade that followed, was operated by Mahatma Gandhi and Pandit Jawaharlal
Nehru. The five years from 1941 to 1946 were ones of unprecedented growth. From a modest
base of 71, the number of branches increased to 278. Deposits grew from Rs. 10 crores to Rs. 62
crores. On March 31, 1947, the Bank officials decided to leave Lahore and transfer the registered
office of the Bank to Delhi and permission for transfer was obtained from the Lahore High Court
on June 20, 1947.
PNB was then housed in the precincts of Sreeniwas in the salubrious Civil Lines, Delhi. Many a
staff member fell victim to the widespread riots in the discharge of their duties. The conditions
deteriorated further. The Bank was forced to close 92 offices in West Pakistan constituting 33
percent of the total number and having 40% of the total deposits. The Bank, however, continued
to maintain a few caretaker branches.
The Bank then embarked on its task of rehabilitating the displaced account holders. The migrants
from Pakistan were repaid their deposits based upon whatever evidence they could produce.
Such gestures cemented their trusts in the bank and PNB became a symbol of Trust and a name
you can bank upon. Surplus staff posed a big problem. Fast expansion became a priority. The
policy paid rich dividends by opening up an era of phenomenal growth.
In 1951, the Bank took over the assets and liabilities of Bharat Bank Ltd. and became the second
largest bank in the private sector. In 1962, it amalgamated the Indo-Commercial Bank with it.
From its dwindled deposits of Rs. 43 crores in 1949 it rose to cross the Rs. 355 crores mark by
the July 1969. Its number of offices had increased to 569 and advances from Rs. 19 crores in
1949 to Rs. 243 crores by July 1969 when it was nationalised.
Since inception in 1895, PNB has always been a "People`s bank" serving millions of people
throughout the country and also had the proud distinction of serving great national leaders like
Sarvshri Jawahar Lal Nehru, Gobind Ballabh Pant, Lal Bahadur Shastri, Rafi Ahmed Kidwai,
Smt. Indira Gandhi etc. amongst other who banked with us.
Punjab Keshari Lala Lajpat Rai (Saluting The Spirit Of Our Founding Father)

1.4 Brief Description:
Profile
Punjab National Bank, India’s first Swadeshi Bank, commenced its operations on April 12, 1895
from Lahore, with an authorised capital of Rs 2 lac and working capital of Rs 20,000. The far-
sighted visionaries and patriots like Lala Lajpat Rai, Mr. E C Jessawala, Babu Kali Prasono Roy,
Lala Harkishan Lal and Sardar Dyal Singh Majithia displayed courage in giving expression to
the spirit of nationalism by establishing the first bank purely managed by the Indians with Indian
Capital.
Business Performance:
During the long history of over 122 years of the Bank, 7 banks have merged with PNB and it has
become stronger and stronger with a network of 6888 Domestic branches and 9997 ATMs as on
31st December 2016. The Bank in Q3 FY’17 crossed many milestones enumerated below:
 Global Business Rs. 10,00,000 Crore
 Global Deposits Rs. 6,00,000 Crore
 Domestic Deposits Rs. 5,50,000 Crore
 CASA Deposits Rs.2,60,000 Crore
 Savings Deposits Rs. 2,20,000 Crore
 Domestic CASA Ratio 47 %
The Bank has recorded consistently higher CASA share to Domestic Deposits which stood at
47% as on 31st Dec’16 with a growth of 32.8% on YoY basis. The Saving Deposits of the Bank
at Rs 2,21,997 crore as on 31st Dec’16 grew by 37.5% on YoY basis.
On the assets side, Net Advances of the Bank at Rs 3,85,727 crore showed a decline of 1.8% on
yearly basis as on 31st Dec’16. Within the asset side, the Bank placed a special focus on small
ticket advances i.e., Retail, MSME and Agriculture credit. As a result of this, the share of small
ticket advances to Domestic Non Food Credit increased from 55.0% in Dec’15 to 56.6% in
Dec’16.
In terms of Bottom Line parameters, the Bank’s Operating Profit increased from Rs 2918 crore
in Q3 FY’16 to Rs 3155 crore in Q3 FY’17 and Net Profit stood at Rs. 207 crore showing an
increase 306.2% in Dec’16 over Dec’15. This was due to robust growth in Non Interest Income
(50.5% on YoY basis in Q3 FY’17 over Q3 FY’16). The Bank’s Trading Profit increased from
Rs 298 crore in Q3FY’16 to Rs.516 crore in Q3FY’17 and Recovery in written off accounts
increased from Rs. 519 crore in Q3FY’16 to Rs.937crore in Q3 FY’17.
In terms of key financial ratios, the Cost of Deposits moved southward from 5.81% in Q3 FY’16
to 5.31% in Q3 FY’17. The Bank has been able to maintain its Capital Adequacy Ratio above the

regulatory requirement. The Bank’s CRAR stood at 11.62% which constituted Tier I ratio of
8.84% and Tier II ratio of 2.78%.
The Bank’s Gross NPA and Net NPA stood at Rs.55,628 crore and Rs.34,994 crore, respectively
as on 31st Dec’16. In terms of ratios, the Gross NPA and Net NPA ratio stood at 13.70% and
9.09%, respectively.
The Bank continues to lay emphasis on improving the asset quality. Owing to this approach, cash
recovery, upgradation and the written off amount was over Rs.6400 crore in Dec’16. The
Provision Coverage Ratio increased from 51.06% in March’16 to 54.96% in Dec’16.
Enhanced Visibility
To create a sustainable competitive advantage, the Bank is focusing on strengthening brand
equity by connecting with the Gen-Next segment. Towards this, the Bank has taken the
following steps:
 The Bank has made official debut on the social networking sites i.e., Twitter and LinkedIn, with
an aim of strengthening “Brand PNB” on social media and to engage with customers in a cost
efficient manner.
 Mr. Virat Kohli, a renowned and energetic young cricketer has been chosen as brand ambassador
of the Bank because of his mass appeal to the youth of the country.
Digital Banking
The Bank’s digital strategy is well delineated and strives to meet the aspirations of the customers
for banking at a click of the mouse and banking on the palm top. The Bank has recorded fast
pace of digitalization with over 2.82 lakh UPI users, 78 lakh internet banking users and 59 lakh
mobile banking users as on 31.12.2016. The Bank launched bucket full of innovative digital
products and services to make banking experience more pleasurable, more convenient and more
rewarding. PNB wallet named as “PNB Kitty” was launched in the month of Dec’16. This online
wallet serves as a virtual account that holds money online and can be used to perform various
activities like send or receive money through PNB Kitty, online utility bill payments,
Mobile/DTH Recharge etc. without sharing sensitive credentials of the Bank Account. The Bank
also has Unified Payment Interface (UPI) facilitating the customers to access their Bank accounts
opened with different Banks in a single app & transfer funds across the banks. The advent of UPI
is to support and speed up seamless remittances across the banks as simple as sending an SMS.
In the series of credit cards, the Bank has recently launched Contact less Credit Card “Wave n
Pay”. In addition to various Digital products, the Bank has a network of 9997 ATMs as on
31.12.2016 installed at various geographical locations in the country which not only offer most
of banking facilities like cash withdrawals, balance enquiry, statement of account, funds transfer
etc but also provide many value added services like inter-bank funds transfer through Card-to-
Card Fund Transfer, Immediate Payment System (IMPS), payment of utility bills, request for
stop payment of cheques, IBS registration, Complaint registration of non-receipt of cash through

ATMs, Aadhaar number registration through ATMs, Credit Card Bill Payment, Debit Card
loyalty registration, payment of Direct Taxes etc
People Development
People Development through Up-skilling HR to align HR Policy & Strategy with business
Strategy & Goals is the main focus of Bank to help improve Customer Service, Commitment,
Competencies and Culture.
Further, an On-boarding & Mentoring Program titled “PNB Navodaya” has been introduced for
newly recruited employees as well as for those recently promoted and first time Branch Heads.
Also, PNB Univ (E-learning App and web based portal) has been launched for all PNB Parivar
Members to provide high quality e-learning 24x7.
Financial Inclusion:
The Bank has always been in the forefront in partnering the economic as well as social
development of the country. The Bank has proactively met its commitments towards social
upliftment and financial empowerment of the targeted segments. This is evident from the fact
that Ministry of Finance, Government of India, has declared PNB as first among all banks in
deposit mobilized through Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts. PNB has
opened 156 lakh accounts and mobilized Rs 3423 crore as on 31st Dec’16. The Bank has also
issued around 138 lakh RuPay debit cards.
To provide card based transactions services to such customers, Micro ATMs have been
introduced at Business Correspondent locations. PNB is the first bank to deploy Micro-ATMs
with RuPay, Aadhaar based & other FI Transactions at BC locations.
Some of the new initiatives of the Bank in Financial Inclusion have been providing of PNB
MetLife at BC location, Atal Pension Yojana through internet banking, Micro ATMs deployed at
all BC location and Aadhaar seeding enabled at BC location.
Corporate Social Responsibility
Corporate Social Responsibility (CSR) is an integral part of corporate business strategy of the
Bank. The Bank is promoting welfare of people living in rural and semi urban areas as a part of
its CSR activity.
The Bank has a PNB VIKAS-Village Adoption Scheme under which the Bank has adopted 168
villages (78 in Lead Districts and 90 in non lead districts) in different states. Further, PNB Ladli
is one such scheme where the Bank is popularizing education among the girls in rural and semi
urban areas. The Bank under this scheme has distributed Rs. 84.72 lac to 3791 girls upto 31st
Dec’16 since the inception of the scheme.
The Bank is also running SWACHCHH VIDYALAYA campaign in which assistance is being
provided for construction of toilets in government schools of adopted/identified villages under
PNB VIKAS.

Further, the Bank is also running PNB KISAN BALAK SHIKHSHA PROTSAHAN YOJANA
in which education is being popularized among children of poor agriculture borrowers of the
Bank.
PNB UJALA is another scheme for providing 4 solar street lights in adopted villages. Solar
Lantern is given to each girl student who is already adopted under PNB Ladli Scheme.
Towards women empowerment, MAHILA KAUSHAL VIKAS YOJANA is a scheme for
creating women entrepreneurship by PNB Farmers Welfare Trust (PNBFWT) and PNB
Centenary Rural Development Trust (PNBCRDT).
Awards And Recognitions
During FY’17, the Bank has won many prestigious awards from influential domestic and
overseas awarding institutions. The Bank’s Six projects won Skoch Order of Merit Award i.e.,
Security operations centre, Oracle Real application cluster, TAB Banking, Green Pin and PNB
Univ. The Bank was also declared Runner up in Education Loan Provider of the Year 2016 by
Outlook Money.
In particular, PNB regained its Number One slot amongst Nationalized Banks with overall rank
at 175th amongst Top 1000 World Bank by ‘The Banker’. Amongst nationalized banks, PNB
topped the chart of India’s Most Trusted Brand as per ‘The Brand Trust Report 2016’ launched
by Trust Research Advisory.
Way Forward
The Bank has identified seven broad areas to be recognized as PNB Internal Indradhanush and is
aligning its strategies accordingly. The strategies are as under:
 Achieving People Development
 Broadening CASA base and enhancing the CASA Share
 Calibrating & Improving Credit-Deposit (CD) ratio
 Devising strategies to resolve Asset Quality Challenges & improve recovery
 Ensuring Qualitative Customer Service
 Forward looking Digital banking Practices
 Growing Income and Controlling Expenditure
For PNB, the growth in business is envisaged to come from small ticket business from the large
network of branches spread Pan India and high rated fresh medium and large credit which
generates consistent and quality earnings. Towards this, the Bank remains committed to its
strategy of “Retail PNB – Digital PNB” wherein mobilizing low cost deposits and increasing the
share of small ticket advances will drive business growth successfully. The Bank endeavors to
become the most preferred bank among Gen-Next clients to take advantage of India’s favorable
demographics. Apart from this, the Bank will also focus on keeping itself well capitalized to
nourish its business growth. Further, the Bank’s investment in evolving and strengthening multi-

channel digital platforms to make the customers’ banking experience seamless and convenient,
will also aid the business growth.
1.5 Locations of operations:
Punjab national bank have 13 Zonal offices in India.
 Agra
 Bhopal
 Chandigarh
 Delhi
 Jaipur
 Calcutta
 Lucknow
 Ludhiana
 Meerut
 Mumbai
 Patna
 Shimla
 Chennai
Circle offices in India are 76.
Total branches in India are 6888.

1.6 Products and services:
In retail Banking PNB offers Deposit schemes and Loans schemes (except MSME):

1. Retail Deposit Schemes.
Saving Deposit (General) Account
 Saving Deposit (General) Account
Resident Individuals (either singly or jointly), Associations, Trusts, Hindu Undivided Families
(HUFs), Clubs, Societies etc. Institutions specially permitted by RBI.
 Premium Saving Account Product
Saving Account can be opened by Individuals (either singly or jointly), Associations, Trusts,
Hindu Undivided Families (HUFs), Clubs, Societies etc.
 PNB Prudent Sweep For Individuals
Sweep in/out shall take place after the cut off balance of Rs.1.00 lac and in multiples of
Rs.10,000/-. Sweep out will be on 5th, 15th and 25th of every month (If there is holiday on these
days, sweep out will be on the next working day from saving account.).
 PNB SF Prudent Sweep For The Accounts Of Institutions
Sweep in/out shall take place after the cut off balance of Rs.10.00 lacs and in multiples of
Rs.1.00 lac. Sweep period is minimum 7 days and maximum one year. Sweep out will be on
daily basis.
 Total Freedom "Saving Fund Salary Account"
To offer an attractive Saving Fund Account to Corporate Employees for enabling them to have
their Salary Credited as well as availing overdraft facility up to Rs. 50,000/- or the last salary
credited in the account whichever is lower, at our interest rates applicable to Personal Loans to
employees, it would be adjustable in bullet repayment at the time of next salary credit.
 High End Salary Account
Second variant of Total Freedom Salary Account
 Family Protection Account
A single individual who is willing to opt insurance product subject to compliance of Know Your
Customer (KYC) Guidelines, execution of Account Opening Form and completion of requisite
formalities, viz., photographs, identity and address proof etc. She/He is required to submit a
prescribed application form for insurance product alongwith AOF for SF.

 PNB Junior Sf Account
Account can be opened by a minor of any age through his/her natural or legally appointed
guardian.
 PNB Vidyarthi SF Account
Zero Balance, Zero Charges Saving Fund Account for Students
 Basic Saving Bank Deposit Account (BSBDA)
Saving Fund account can be opened by an INDIVIDUAL singly or jointly, minors of the age of
10 years and above.
 PNB Rakshak Scheme
Zero balance Account
 PNB Shikshak Sweep Scheme
All Permanent Teachers of recognised schools/colleges/educational institutes are eligible to open
account under the scheme.
 Scheme For Providing Overdraft Facility To Pensioners
Eligibility: Pensioners who are drawing their pension from our branches provided the conduct of
the account is satisfactory.
 PNB Power Savings
Joint account can also be opened under the scheme however the first name should be of woman.
 PNB Pension Savings Account
Scheme for existing /prospective pensioners with overdraft facility

Current Account
 PNB Smart Banking Current Account
A current account loaded with most desirable features, privileges, flexibility and wider choice of
variants to cater to the diversified banking needs for any business activity – with or without
sweep–in and sweep-out facility.
 PNB Current Deposit Account
Current deposit account is very convenient product for frequent banking transactions by
individuals, Firms, HUF, Companies, institutions, etc. There is no limit on number of
transactions in such accounts and are most suitable for business operations. The product is
available at all branches.

Fixed Deposit
 PNB Recurring Deposit Scheme (E-RD):
Applicable to Internet Banking Users only.
 Schemes Covered (Under E-FD):
Multi Benefit Term Deposit Scheme (below Rs.1 Crore), Special Term Deposit Scheme (below
Rs.1 Crore), Ordinary Term Deposit Scheme (below Rs.1 Crore) & PNB Sugam Term Deposit
Scheme (upto Rs.10 Crore).
 FD Scheme For Road Accident Victims:
The scheme is to facilitate the claimants of victims of road accidents to place the funds received
from the Motor Tribunal as per court orders under the maximum interest category of Fixed
Deposit.
 Recurring Deposit Scheme:
Minor who have attained the age of 10 years and above in his/her own name on giving proof of
age.
 PNB Anupam Term Deposit Scheme:
Account can be opened with minimum deposit of Rs. 10000/-and thereafter in multiples of Rs.
1000/- with maximum amount of Rs.99, 99,000/-

 PNB Balika Shiksha:
All girls who pass class VIII from Kasturba Gandhi Balika Vidyalayas (irrespective of whether
they belong to SC/ST and enroll for class IX in state/UT Govt. , Govt. aided or local bodies
schools in the academic year 2008-2009 onwards.
 PNB Capital Gain Account Scheme:
Individuals for crediting amount from Capital gain. No joint Account.
 PNB Multi Benefit Term Deposit Scheme:
Minimum Deposit of Rs.100/- thereafter in convenient multiples of any amount Max Rs.99.99
lac
 PNB Scheme For Road Accident Victims:
A minor of 10 years and above in his own name otherwise under guardianship shall be eligible to
open under the scheme provided there are Court Orders in support of the claim in his/their
names.
 PNB Special Recurring Deposit Product:
The account can be opened by all Govt. Institutions, Pvt. Institutions, PSUs, Corporate Bodies
etc. The account shall be opened in the Name of the institution A/C Name of the employee. The
Institution shall open the accounts with minimum 10 Employee or 75% of the eligible employee
whichever is lower.
 PNB Special Term Deposit Scheme:
Customers obligation: Completion of KYC norms and submission of complete information as
required.

 PNB Sugam Term Deposit Scheme:
Minimum Deposit of Rs.100/- thereafter in convenient multiples of any amount Max Rs.99.99
lac
 PNB Swechha Jama Yojna/Flexi RD:
Minimum of Rs. 100/- or above in its multiples. However, monthly deposit will not exceed ten
times of such core.
 PNB Ordinary Term Deposit Scheme:
Minimum Deposit of Rs.100/- thereafter in convenient multiples of any amount Max Rs. 99.99
lac
 PNB Varshik Aay Yojana (VAY) Deposit Scheme:
Minimum Deposit of Rs.10000/- thereafter in multiples of Rs. 1000/- max Rs. 99.99 lac Min 24
months & in multiples of 12 months with max period of 120 months.
 PNB Tax Saver Fixed Deposit Scheme:
Minimum Deposit Rs100/- or in multiples thereof, subject to maximum deposit of Rs. 1.50 lac
per financial year
 Prospective Sr. Citizen Scheme:
Rs.100/- and in multiples of Rs.1/- thereof. The maximum amount permitted under the scheme is
Rs.99, 99,999/-
 PNB Mibor Linked Notice Deposit Scheme:
MIBOR linked notice deposit scheme provides a deposit product with a Market determined
interest rate linked to MIBOR (Mumbai Inter Bank Offer Rate)NSE Overnight
 PNB Floating Rate Fixed Deposit Scheme:

Rs.100/- and in multiples of Rs.1/- thereof. The maximum amount permitted under the scheme is
Rs.99, 99,999/-
 PNB Bulk Fixed Deposit Scheme (ABOVE Rs.10 CRORE):
The Fixed Deposit account can be opened with a single deposit of above Rs.10.00 crore, and
thereafter in multiples of Re. 1.
PNB Capital Gain Account Scheme
This Account is for individual for crediting amount from Capital gain. No joint account. Deposit
in this account is minimum for 7 days to 10 years. The account can be opened in all the branches
except Rural Branches.

2. Retail Loan Schemes.
Housing Loan
 PNB Pride Housing Loan For Government Employees:
To ensure availability of Housing Loan at attractive rates and ensure a house for all government
employees.
 Housing Loan For Public:
To ensure availability of Housing Loan at attractive rates and ensure a house for all.
 Housing Loan For Public – Pradhan Mantri Awas Yojana – Housing For All:
To ensure availability of Housing Loan to Individuals from Economically Weaker Section
(EWS) & Low Income Group (LIG) category at attractive rates and ensure a house for all.
 Housing Loan For Public – Pradhan Mantri Awas Yojana – Housing For All- MIG:
Housing Loan For Public – Pradhan Mantri Awas Yojana – Housing For All – Credit Linked
Subsidy Scheme – Middle Income Group
 PNB Gen-Next Housing Finance Scheme For Public:
Providing housing finance to Gen-Next salaried class borrowers such as IT Professionals,
PSBs/PSUs/Govt. Employees to have a decent home.

Vehicle Laon
 PNB Pride Car Loan For Government Employees:
To make available Loan for purchase of car to Government Employees on attractive terms.
 `PNB Saarthi` - Scheme For Financing Two Wheelers To Public:
For purchase of new Two wheelers viz.: Scooter(s), Motor cycle(s), Scooterrete (s), Moped(s),
(subject to Registration of vehicle with RTO).
 `PNB Power Ride` Scheme For Financing Two Wheelers To Women:
For purchase of new Two wheelers viz.: Scooter(s), Motor cycle(s), Moped(s), (subject to
Registration of vehicle with RTO).
 PNB Car Loan:
To make available Loan for purchase of car by proposed car buyers on attractive terms.
To purchase:
New Car/Van/Jeep/Multi Utility Vehicle (MUV) or Sports Utility Vehicles (SUV).
Old car/van/jeep/MUV/SUV, which are not older than three years.
For private use only.
Individuals
Business concerns (corporate or non-corporate).
Minimum net monthly salary / pension/ income - Rs.20000/-.

Education Loan
 PNB Saraswati:
To provide financial support to meritorious students for pursuing higher education in India.
Approved courses leading to Graduate/ Post Graduate degree and PG Diplomas conducted by
recognized colleges/ universities recognized by UGC/ Govt. / AICTE/ AIBMS/ ICMR etc.
Courses like ICWA, CA, CFA etc.
Courses conducted by IIMs, IITs, IISc, XLRI. NIFT, NID etc.
Regular Degree/Diploma courses like Aeronautical, pilot training, shipping Nursing or any other
discipline approved by Director General of Civil Aviation/Shipping/ Indian Nursing Council or
any other regulatory body as the case may be.
Advance Diploma in Banking Technology offered by PNB IIT Lucknow.
Approved courses offered in India by reputed foreign universities.
Research Programmes recognized by designated academic authority/ regulatory body.
 PNB Pratibha:
PNB Pratibha - Education Loan Scheme for premier institutes
Fee payable to college/ school/ hostel.
Examination/ Library/ Laboratory fee.
Life Insurance premium for student borrower, if applicable.
Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts.
Purchase of books/ equipments/ instruments/ uniforms.
Purchase of computer, at reasonable cost, if required for completion of the course.
Any other expense required to complete the course - like study tours, project work, thesis, etc
 PNB Udaan:
`PNB Udaan` Education loan scheme for students pursuing Higher Education Abroad
Graduation: For job oriented professional/technical courses offered by reputed universities.
Post graduation: MCA, MBA, MS, etc.
Courses conducted by CIMA- London, CPA in USA etc.
Degree/Diploma courses like aeronautical, pilot training, shipping etc. provided these are
recognized by competent regulatory bodies in abroad for the purpose of employment in abroad.

Education loan to students for pursuing Diploma & Certificate courses other than aeronautical,
pilot training, shipping etc from abroad, may be considered, where the loan is backed by liquid
security valuing 125% of loan amount in the shape of FDRs/ NSCs/ surrender value of Life
Insurance Policies along with establishing the financial credentials of family members (either
joint borrower or guarantor) subject to the condition that the said course(s) is recognized/
accredited one.
 PNB Kaushal:
Education Loan Scheme for pursuing Vocational Education & Training
Should be an Indian national.
Student should have secured admission in a course run by IndustrialTraining Institutes (ITIs),
Polytechnics or in a school recognizedby central or State education Boards or in a college
affiliated torecognized university, training partners affiliated to National SkillDevelopment
Corporation (NSDC)/Sector Skill Councils, State SkillMission, State Skill Corporation,
preferably leading to a certificate /diploma / degree issued by such organization as per National
SkillQualification Framework (NSQF).
 PNB Honhaar:
Education Loan Scheme For Pursuing Higher Education And Skill Development Courses In
Delhi
The Scheme aims at providing financial support for pursuing higher education in Delhi
Fee payable to college/ school/ hostel
Examination/ Library/ Laboratory fee
Insurance premium for student borrower
Caution deposit, Building fund / refundable deposit supported by Institution bills/receipts
Purchase of books/ equipment / instruments / uniforms
Purchase of computer at reasonable cost, if required for completion of the course
Any other expense required to complete the course - like study tours, project work, thesis, etc
While computing the loan required, scholarships, fee waiver etc., if any available to the student
borrower may be taken into account.
If the scholarship component is included in the loan assessment, it may be ensured that the
scholarship amount gets credited to the loan account when received from the Government.
 PNB Bihar Student credit card scheme:
Education Loan Scheme For Pursuing Higher Education For Students Of Bihar
The PNB Bihar Student Credit Card Scheme outlined below aims at providing financial support

 Concessional Education Loan:
Concessional Education loan is being provided to students or Persons with Disabilities (PwDs)
under Bank`s Education Loan schemes, namely:-
 Padho Pardesh:
Padho pardesh - scheme of interest subsidy on educational loans for overseas studies for the
students belonging to the minority communities
 Govt Guidelines On New CSIS Scheme:
Guidelines for providing relief on interest outstanding component as on 31.12.13 for all
Educational Loans sanctioned/availed up to 31.03.2009 & outstanding as on 31.12.2013.
 Govt Guidelines On Old CSIS Scheme:
Central Scheme to provide lnterest Subsidy for the period of moratorium on Educational Loans
taken by students from Economically Weaker Sections from scheduled banks under the
Educational Loan Scheme of the lndian Banks` Association to pursue TechnicallProfessional
Education studies in India.
 Dr. Ambedkar Central Sector Scheme Of Interest Subsidy On Educational Loan For
Overseas:
Studies For Other Backward Classes (OBCs)(Effective From 2014-15)
Scheme of Interest Subsidy on Educational Loans for Overseas Studies for the Students
belonging to the Other Backward Classes (OBCs)
 Dr. Ambedkar Central Sector Scheme Of Interest Subsidy On Educational Loan For
Overseas:
Studies For Other Backward Classes (EBCs)(Effective From 2014-15)
Dr.Ambedkar Central Sector Scheme of Intrest Subsidy on education Loan for Overseas Studies
for Economically Backword Classes (EBCs)

 CREDIT GUARANTEE FUND SCHEME FOR EDUCATION LOANS (CGFSEL):
The Scheme shall be known as the Credit Guarantee Fund Scheme for Education Loan
(CGFSEL).
 CREDIT GUARANTEE FUND SCHEME FOR SKILL DEVELOPMENT (CGFSSD):
The Scheme shall be known as the Credit Guarantee Fund Scheme for Skill Development
(CGFSSD).

Personal Loan
 Personal Loan Scheme For Public:
personal loan scheme for public
To meet all types of personal needs (e.g., for medical treatment of self or a family member,
marriage of self, son/daughter, defraying expenses on education of wards, expenses for domestic
or foreign travel etc.)
All permanent Defence Personnel including officials of Military Station Headquarters, Border
Security Force, Central Reserve Police Force, Central Industrial Security Force, Indo Tibetan
Boarder Police, etc. However, loan request of Defence Personnel, who are due for retirement
within next 24 months, may not be entertained.
Confirmed/permanent employees of Central/State Govt./PSUs and all reputed
companies/Institutions including Schools, Colleges, Universities, autonomous bodies,
Hospitals/Nursing Homes, who are either drawing their salary through accounts maintained with
our branches or these employers agree for check off facility.
Professionally qualified practicing Doctors viz., MBBS, BDS & above having annual income of
Rs.4.00 lac and above. Doctors should be taxpayers for the last three years
 Personal Loan Scheme For Pensioners:
personal loan scheme for pensioners
To meet personal needs including medical expenses.
All types of pensioners drawing pension through our branches
Age upto 70 years: Rs. 10,00,000/- (Rupees Ten lac only) OR 18 times of net monthly Pension
(For Defence pensioners, 20 times net monthly pension), whichever is lower.
Age above 70 years and upto 75 years: Rs 7.50 lac OR 18 times their net monthly Pension (20
times in case of Defence Pensioners), whichever is lower;
Age above 75 years: Rs. 5.00 lac OR 12 months of pension amount, whichever is lower.
 PNB Baghban- A Scheme For House Owning Senior Citizens Of India Under `Reverse
Mortgage Concept`:
PNB baghban- a scheme for house owning senior citizens of india under `reverse mortgage
concept` For generating income/supplementing pension/other income for day to day
requirements.

Residential house/flat owner, resident of India, age of 60 years & above The residential
house/flat should be in his/her single name or jointly with his/her spouse, with clear title in
his/her/their name(s)
n case of joint account, one of the spouse must be of the age of 60 years & above, while the age
of other spouse should be minimum 58 years.
 Advance Against Gold And Jewellery:
advance against gold jewellery / ornaments & gold coins.
For productive purposes such as agricultural/allied and other activities as well as for non-
productive purposes (meeting medical, educational, marriage expenses and other unforeseen
expenses etc.)

MISC
 Loan Against Mortgage Of Immovable Property:
For Business & Personal needs. Personal Needs: Employees of Central/ State Govt./ Schools/
Colleges/ Public Sector Undertakings (PSUs)/ Reputed Corporates and Other Income Tax
Assesses, who are below the age of 60 years.
Business Enterprise : Existing customers with a satisfactory track record of three years (cash
profits during last three years and net profit in the immediately preceding year)
Personal Needs: Employees of Central/ State Govt./ Schools/ Colleges/ Public Sector
Undertakings (PSUs)/ Reputed Corporates and Other Income Tax Assesses, who are below the
age of 60 years.
Business Enterprise : Existing customers with a satisfactory track record of three years (cash
profits during last three years and net profit in the immediately preceding year)
 Retail Loan For Bharat Sanchar Nigam Limited (BSNL) Employees:
This product is offered by PNB for the employees of BSNL. Interest rate is less and processing
fees is also NIL in this scheme. Housing Finance Scheme for Public;
Overdraft Facility to existing Housing Loan Borrowers for Personal Needs;
PNB Gen-Next – Housing Finance Scheme for Public (for applicants upto the age of 40 years);
Scheme for Financing Purchase of Car by Public;
PNB Saarthi - Scheme for Financing Two-Wheelers to Public;
PNB Power Ride - Scheme for Financing Two-Wheelers to Women Borrowers;
Personal Loan Scheme for Public.
MoU is valid upto 29.03.2018. Renewal of MoU subject to review.

1.7 Size in terms of Manpower and ROI of the company:
Number of employees. 70,801 (March 2016)
Financial performance
Particulars 2008-09 2009-10 2010-11 2011-12 2012-13
Total Assets (' INR crores) 246,919 296,633 378,325 458,192 478,877
Operating Profit (' INR crores) 5,690 7,326 9,056 10,614 10,907
Net Profit 3,091 3,905 4,433 4,884 4,748
Business/Employee 655 808 1,018 1,132 1,165
Profit/Employee (' INR
lakhs)
5.64 7.31 8.35 8.42 8.06
Return on assets (%) 1.39 1.44 1.34 1.19 1
Gross NPAs (%) 1.6 1.71 1.79 2.93 4.27
Net NPAs (%) 0.17 0.53 0.85 1.52 2.35
Total Branches 4,665 4,997 5,189 5,670 5,874

1.8 Market share and positions and competitors of the company in the
industry:
PNB regained its Number One slot amongst Nationalized Banks with overall rank at 175th
amongst Top 1000 World Bank by ‘The Banker’. Amongst nationalized banks, PNB topped the
chart of India’s Most Trusted Brand as per ‘The Brand Trust Report 2016’ launched by Trust
Research Advisory.

1.9 SWOT analysis of PNB:

1.10 Balance sheet of PNB:

2. Internship Profile:
2.1 Details of Industry mentor- Name, Designation, Department, Location,
Contact email- ID, Phone:
2.2Location of Internship:
 Dehradun

2.3 Detail of Task :
 Learned about the organization.
 Policies and procedures of loans.
 Application process for loan.
 Different Deposit schemes.
 Different Loans schemes.
 Verify the Documentation for loan file.
2.4 Time Frame- Start Date, completion date, Gantt chart (Project Chart
Line), Weekly status :
Start Date – 22nd
May 2017
Completion date – 5th
July 2017
Gantt chart:
Company profile
Internship profile
Key Observations
Learning and Value addition
Best Practices and Bench Mark study
Recommendation and Suggestions
Bibliography
Appendices
START DATE
DURATION

Weekly Progress Report
Name: Ravi Kumar
WPR of Week No.: 1 WPR’s Remaining: 5
Enrollment Number: 1604201135 Programme: MBA ( dual)
Summer Internship Subject Area: Finance
Week- First Weekly Summary
Dates
( 22th
May 2017
to 26th May
2017)
had gathered the information about the Bank ( punjab national bank).
Name: Ravi Kumar
Dates
( 28th
May 2017
to 3rd June
2017)
understand all products and services offered by PNB in retail sector.

Name: Ravi Kumar
Dates
( 5th June 2017
to 9rd June
2017)
understand all deposit schemes by PNB in retail sector.
Name: Ravi Kumar
Dates
( 12th June
2017 to
17th June 2017)
understand all loan schemes by PNB in retail sector.

Name: Ravi Kumar
Dates
( 19th June
2017 to
23rd June 2017)
for giving loans i have learned about different eligibility criteria for different
loan schemes.
Name: Ravi Kumar
Dates
( 26th June
2017 to 5th July
2017)
learned how to process the loan file.

2.5 Summer Internship Feedback:

3.Key Observations:
3.1 Work description- It includes the proper understanding of the work
assigned to him/her as well as the implementation of the work in practice:
Retail banking, also known as consumer banking, is the provision of services by a bank to
individual consumers, rather than to companies, corporations or other banks. Services offered
include savings and transactional accounts, mortgages, personal loans, debit cards, and credit
cards. The term is generally used to distinguish these banking services from investment
banking, commercial banking or wholesale banking. It may also be used to refer to a division or
department of a bank dealing with retail customers.
In the U.S., the term commercial bank is used for a normal bank to distinguish it from
an investment bank. After the Great Depression, through the Glass–Steagall Act, the U.S.
Congress required that banks only engage in banking activities, whereas investment banks were
limited to capital markets activities. This separation was repealed in the 1990s. Commercial bank
can also refer to a bank or a division of a bank that mostly deals with deposits and loans from
corporations or large businesses, as opposed to individual members of the public (retail banking
3.2Practices followed-A detailed explanation of the practices followed in the
execution of the work in the company:
Responsible for performing intermediate duties and support related to branch operational
activities and financial services; processes all new loan files; assisting customers in their
selection of various accounts and financial services; cross-selling the Bank's products and
services.
3.3Key Challenges faced while doing the task- The student should also
describe the challenges faced and actions taken while performing the task
assigned to him/her:
 Rapid changes in system and rules of bank had refrained me from doing my work.
 I have to go through the struggle of completing the demand given by my organization
 I was overwhelmed with my work but I found my 45 days of training inadequate.

4. Learning & Value Addition: should include
4.1Major Learning during their SIP tenure:
 Learned about the Organization.
 Policies and procedures of loans.
 Application process for loan.
 Different Deposit schemes.
 Different Loans schemes.
 Verify the Documentation for loan file.
 Checking the eligibility of an individual for loan.
 Documents required for loan and deposit schemes.
4.2 Difference between practical exposure and theoretical concepts studied
in classroom:
Reasons why Practical Education is more important than Theoretical -
1. Interactive Education creates a Deeper Impact
2. Can motivate team work
3. Interesting => Easy
4. It is more interesting
5. Involves application and deals with real life situations
6. Improves skills
7. Includes practice
8. Develops a better Understanding
9. Knowledge retains in our mind
10. It does not require mugging up

4.3 Usefulness of internship with future perspective:
1) Real world experience: Joining a company as an intern gives you the opportunity to work
hands on in a professional environment. As an intern you're not just there to get coffee or run
errands but you're there to gain actual work experience. Internships help by teaching you more
about the career path you are pursuing. Think of it like this – internships are a way to test drive
possible jobs and explore different career options.
2) Networking: Internships often give you the opportunity to attend meetings and events. By
interacting with professionals you gain new connections and learn how to communicate in a
professional environment. Personally, my internships have introduced me to a lot of useful
resources and have given me the opportunity to meet a variety of professionals in my field.
Networking has helped me acquire references and find new job opportunities. Internships can
even provide you with a professional mentor.
3) Resume Builder: As a college student I know the importance of a strong resume. Without a
solid resume it can be tougher to be considered for a position. And how can you have a strong
resume without any experience? Internships are key to building experience as a student or recent
graduate. Employers are much more likely to hire someone with internships and work experience
rather than someone with a generic resume, lacking experience.
4) Time Management: As an intern you'll become a master of time management. When you're
working in a fast paced professional environment you need to know every minute counts. Time
management is vital in every circumstance whether you're attending meetings, finishing tasks on
deadlines, making phone calls, picking up your boss' dry cleaning or walking their dog (just
kidding about those last two).
5) Career Foundation: Internships provide you with the building blocks you need for your
future. Many internship opportunities help set the foundation for your career. It is important that
you choose you internships based on your interests and career prospects. As an intern you have
the opportunity to get your foot in the door with a company. Keep in mind, employers often use
internships as a recruitment tool to test out future employees and in many cases, companies hire
interns after graduation.
Internships are great tools to improve your chances as a job applicant and help make you a better
potential employee. So make the investment in your career and look into becoming an intern.

5. Best practices and benchmark study-
5.1Major Companies in the respective industry sector:
1. Allahabad Bank
2. Andhra Bank
3. Bank of India
4. Bank of Baroda
5. Bank of Maharashtra
6. Canara Bank
7. Central Bank of India
8. Corporation Bank
9. Dena Bank
10. Indian Bank
11. Indian Overseas Bank
12. IDBI Bank
13. Oriental Bank of Commerce
14. Punjab & Sindh Bank
15. Punjab National Bank
16. State Bank of India
17. Syndicate Bank
18. UCO Bank
19. Union Bank of India
20. United Bank of India
21. Vijaya Bank

+
5.2Market share of each company in the same industry sector:

PRICE PERFORMANCE
Company
1 YearPrice
(% Chg)
9
MonthsPrice
(% Chg)
6
MonthsPrice
(% Chg)
3
MonthsPrice
(% Chg)
Last
PricePrice
(% Chg)
Allahabad Bank 51.35 38.56 84.90 -16.2 68.00 4.63 69.90 1.79 71.15 0.78
Andhra Bank 48.80 20.8 60.50 -2.56 51.55 14.35 54.70 7.77 58.95 0.51
Bank of Baroda 143.45 22.52 169.50 3.69 162.30 8.29 160.85 9.26 175.75 0.75
Bank of India 84.50 69.11 119.40 19.68 117.00 22.14 128.35 11.34 142.90 0.25
Bank of Mah 28.40 5.99 31.15 -3.37 29.55 1.86 33.55 -10.28 30.100
Canara Bank 188.16 91.86 279.40 29.21 304.74 18.46 290.90 24.1 361.00 0.7
Central Bank 83.80 19.99 105.85 -5.01 86.75 15.91 92.90 8.23 100.55 0.2
Corporation Bk 34.35 46.87 42.85 17.74 44.85 12.49 47.30 6.66 50.45 0.2
Dena Bank 29.10 16.32 36.35 -6.88 34.60 -2.17 37.40 -9.49 33.85 0.74
IDBI Bank 64.90 -7.4 73.40 -18.12 68.25 -11.94 77.55 -22.5 60.10 0.42
Indian Bank 95.15 229.48 235.10 33.35 240.70 30.25 285.05 9.98 313.50 0.88
IOB 26.05 -1.15 26.40 -2.46 25.20 2.18 27.15 -5.16 25.75 0.39
Oriental Bank 83.05 85.55 127.75 20.63 118.60 29.93 125.00 23.28 154.10 1.85

Punjab & Sind 40.95 31.62 52.35 2.96 49.60 8.67 52.65 2.37 53.90 0.19
PNB 77.00 96.1 132.70 13.79 134.05 12.64 141.55 6.68 151.00 1
SBI 198.90 45.12 260.10 10.98 259.10 11.4 269.85 6.97 288.65 0.47
Syndicate Bank 64.25 26.69 76.55 6.34 66.60 22.22 67.95 19.79 81.40 0.06
UCO Bank 34.15 0.44 40.60 -15.52 33.70 1.78 36.35 -5.64 34.30 0.59
Union Bank 116.05 36.62 145.70 8.82 143.20 10.72 147.25 7.67 158.55 0.6
United Bank 17.55 12.25 21.70 -9.22 21.05 -6.41 24.40 -19.26 19.70 0.25
UTI - Gold
2646.65 -
1.01
2794.45 -
6.24
2564.75 2.15
2645.20 -
0.95
2620.00 0.2
Vijaya Bank 30.55 162.19 39.35 103.56 44.45 80.2 65.85 21.64 80.10 0.31

5.3Growth & Opportunities in the respective industry sector:
In banking industry, the opportunities for Horizontal growth are tremendous. The Vertical
growth i.e. moving from Branch Manager to Back Office to Regional Office to Head Office to
Top Management exists but is very similar to any other company.
Vertical growth is a matter of experience, education, initiative, attitude and being in the right
place at the right time.
SO, in that respect the growth in banking sector is the same as any other Service Industry.
However, where Bankers tremendously grow is, in terms of Horizontal Knowledge.
A Banker at a beginner (Branch Banking Level) is a glorified data entry operator. This is
common across all Banks.
In Private banks, they are also take on he pushy sales guy role. Due to the very nature and
diversity of the Indian market, a lot of banks adopt Hard - Selling approach to selling financial
products.
Eventually, as bankers move up the ladder, they grow in terms of managing the regional
complexity of the branch banking system.
At the end of the day, those in Retail Banking deal with a very strong interface of people
based interaction.
At the Back end office level, Banks feel free to cross post people across departments. So
someone in Business Banking can move into the Electronic payment Department and then
move to Payment Unit and then to Portfolio.
At the end of the day, your growth is a function of your own capability and adaptability.
Working in a bank is stressful but exciting because it requires multiple skill sets to be used in
conjunction. There is constant geographical and role based displacement as well.
It builds adaptability on your own.
Secondly, from a career perspective, it is the only Financial Sector that a Graduate from any
stream can join. Of course, banks depend on specialist risk and legal teams, but many great
Indian bankers have been BA pass.
In today's times, banks provide a very steady, middle class to upper class bracket level income
to beginners (depending on your profile ).
There is also stupendous growth based on your ability to learn and absorb.
Promotions come by quick due to the huge manpower requirement of the industry as it stands.
However, Banking is not entrepreneurship and there is very little scope for rash and quick
growth.
RBI monitors and observes every aspect of the Industry closely. You can't take any shortcuts
to success if you are working in retail banking in India.
Growth here is slow and steady but surely and cautiously.

6. Recommendations & Suggestions:
6.1The business function where he/she has worked:
The Punjab National bank serve as the king pin of the financial system of the country. They
render many valuable services. The important functions of the Commercial banks can be
explained with the help of the following chart.
Primary Functions
The primary functions of the commercial banks include the following:

A. Acceptance of Deposits
1. Time Deposits:
These are deposits repayable after a certain fixed period. These deposits are not withdrawn able
by cheque, draft or by other means. It includes the following.
(a) Fixed Deposits:
The deposits can be withdrawn only after expiry of certain period say 3 years, 5 years or 10
years. The banker allows a higher rate of interest depending upon the amount and period of time.
Previously the rates of interest payable on fixed deposits were determined by Reserve Bank.
Presently banks are permitted to offer interest as determined by each bank. However, banks are
not permitted to offer different interest rates to different customers for deposits of same maturity
period, except in the case of deposits of Rs. 15 lakhs and above.
These days the banks accept deposits even for 15 days or one month etc. In times of urgent need
for money, the bank allows premature closure of fixed deposits by paying interest at reduced
rate. Depositors can also avail of loans against Fixed Deposits. The Fixed Deposit Receipt cannot
be transferred to other persons.
(b) Recurring Deposits:
In recurring deposit, the customer opens an account and deposit a certain sum of money every
month. After a certain period, say 1 year or 3 years or 5 years, the accumulated amount along
with interest is paid to the customer. It is very helpful to the middle and poor sections of the
people. The interest paid on such deposits is generally on cumulative basis. This deposit system
is a useful mechanism for regular savers of money.
(c) Cash Certificates:
Cash certificates are issued to the public for a longer period of time. It attracts the people because
its maturity value is in multiples of the sum invested. It is an attractive and high yielding
investment for those who can keep the funds for a long time.
It is a very useful account for meeting future financial requirements at the occasion of marriage,
education of children etc. Cash certificates are generally issued at discount to face value. It
means a cash certificate of Rs. 1, 00,000 payable after 10 years can be purchased now, say for
Rs. 20,000.
2. Demand Deposits:
These are the deposits which may be withdrawn by the depositor at any time without previous
notice. It is withdraw able by cheque/draft. It includes the following:
(a) Savings Deposits:
The savings deposit promotes thrift among people. The savings deposits can only be held by
individuals and non-profit institutions. The rate of interest paid on savings deposits is lower than

that of time deposits. The savings account holder gets the advantage of liquidity (as in current
a/c) and small income in the form of interests.
But there are some restrictions on withdrawals. Corporate bodies and business firms are not
allowed to open SB Accounts. Presently interest on SB Accounts is determined by RBI. It is 4.5
per cent per annum. Co-operative banks are allowed to pay an extra 0.5 per cent on its savings
bank deposits.
(b) Current Account Deposits:
These accounts are maintained by the people who need to have a liquid balance. Current account
offers high liquidity. No interest is paid on current deposits and there are no restrictions on
withdrawals from the current account.
These accounts are generally in the case of business firms, institutions and co-operative bodies.
Nowadays, banks are designing and offering various investment schemes for deposit of money.
These schemes vary from bank to bank.
It may be stated that the banks are currently working out with different innovative schemes for
deposits. Such deposit accounts offer better interest rate and at the same time withdraw able
facility also. These schemes are mostly offered by foreign banks. In USA, Current Accounts are
known as 'Checking Accounts' as a cheque is equivalent to check in America.
B. Advancing of Loans
The commercial banks provide loans and advances in various forms. They are given below:
1. Overdraft:
This facility is given to holders of current accounts only. This is an arrangement with the bankers
thereby the customer is allowed to draw money over and above the balance in his/her account.
This facility of overdrawing his account is generally pre-arranged with the bank up to a certain
limit.
It is a short-term temporary fund facility from bank and the bank will charge interest over the
amount overdrawn. This facility is generally available to business firms and companies.
2. Cash Credit:
Cash credit is a form of working capital credit given to the business firms. Under this
arrangement, the customer opens an account and the sanctioned amount is credited with that
account. The customer can operate that account within the sanctioned limit as and when required.
It is made against security of goods, personal security etc. On the basis of operation, the period
of credit facility may be extended further. One advantage under this method is that bank charges
interest only on the amount utilized and not on total amount sanctioned or credited to the
account.

Reserve Bank discourages this type of facility to business firms as it imposes an uncertainty on
money supply. Hence this method of lending is slowly phased out from banks and replaced by
loan accounts. Cash credit system is not in use in developed countries.
3. Discounting of Bills:
Discounting of Bills may be another form of bank credit. The bank may purchase inland and
foreign bills before these are due for payment by the drawer debtors, at discounted values, i.e.,
values a little lower than the face values.
The Banker's discount is generally the interest on the full amount for the unexpired period of the
bill. The banks reserve the right of debiting the accounts of the customers in case the bills are
ultimately not paid, i.e., dishonored.
The bill passes to the Banker after endorsement. Discounting of bills by banks provide
immediate finance to sellers of goods. This helps them to carry on their business. Banks can
discount only genuine commercial bills i.e., those drawn against sale of goods on Credit. Banks
will not discount Accommodation Bills.
4. Loans and Advances:
It includes both demand and term loans, direct loans and advances given to all type of customers
mainly to businessmen and investors against personal security or goods of movable or
immovable in nature. The loan amount is paid in cash or by credit to customer account which the
customer can draw at any time.
The interest is charged for the full amount whether he withdraws the money from his account or
not. Short-term loans are granted to meet the working capital requirements where as long-term
loans are granted to meet capital expenditure.
Previously interest on loan was also regulated by RBI. Currently, banks can determine the rate
themselves. Each bank is, however required to fix a minimum rate known as Prime Lending Rate
(PLR).
Classification of Loans and Advances
Loans and advances given by bankers can be classified broadly into the following categories:
(i) Advances which are given on the personal security of the debtor, and for which no tangible or
collateral security is taken; this type of advance is given either when the amount of the advance
is very small, or when the borrower is known to the Banker and the Banker has complete
confidence in him (Clean Advance).
(ii) Advances which are covered by tangible or collateral security. In this section of the study we
are concerned with this type of advance and with different types of securities which a Banker
may accept for such advances (Secured Advance).
(iii) Advances which are given against the personal security of the debtor but for which the
Banker also holds in addition the guarantee of one or more sureties. This type of advance is often
given by Banker to persons who are not known to them but whose surety is known to the Banker.

Bankers also often take the personal guarantee of the Directors of a company to whom they agree
to advance a clean or unsecured loan.
(iv) Loans are also given against the security of Fixed Deposit receipts.
5. Housing Finance:
Nowadays the commercial banks are competing among themselves in providing housing finance
facilities to their customers. It is mainly to increase the housing facilities in the country. State
Bank of India, Indian Bank, Canara Bank, Punjab National Bank, has formed housing
subsidiaries to provide housing finance.
The other banks are also providing housing finances to the public. Government of India also
encourages banks to provide adequate housing finance.
Borrowers of housing finance get tax exemption benefits on interest paid. Further housing
finance up to Rs. 5 lakh is treated as priority sector advances for banks. The limit has been raised
to Rs. 10 lakhs per borrower in cities.
6. Educational Loan Scheme:
The Reserve Bank of India, from August, 1999 introduced a new Educational Loan Scheme for
students of full time graduate/post-graduate professional courses in private professional colleges.
Under the scheme all public sector banks have been directed to provide educational loan up to
Rs. 15,000 for free seat and Rs. 50,000 for payment seat student at interest not more than 12 per
cent per annum. This loan is on clean basis i.e., without calling for security.
This loan is available only for students whose annual family income does not exceed Rs. 1,
00,000. The loan has to be repaid together with interest within five years from the date of
completion of the course. Studies in respect of the following subjects/areas are covered under the
scheme.
(a) Medical and dental course.
(b) Engineering course.
(c) Chemical Technology.
(d) Management courses like MBA.
(e) Law studies.
(f) Computer Science and Applications.
This apart, some of the banks have other educational loan schemes against security etc., one can
check up the details with the banks.
7. Loans against Shares/Securities:
Commercial banks provide loans against the security of shares/debentures of reputed companies.
Loans are usually given only up to 50% value (Market Value) of the shares subject to a
maximum amount permissible as per RBI directives. Presently one can obtain a loan up to Rs.10
lakhs against the physical shares and up to Rs. 20 lakhs against dematerialized shares.

8. Loans against Savings Certificates:
Banks are also providing loans up to certain value of savings certificates like National Savings
Certificate, Fixed Deposit Receipt, Indira Vikas Patra, etc. The loan may be obtained for
personal or business purposes.
9. Consumer Loans and Advances:
One of the important areas for bank financing in recent years is towards purchase of consumer
durables like TV sets, Washing Machines, Micro Oven, etc. Banks also provide liberal Car
finance.
These days banks are competing with one another to lend money for these purposes as default of
payment is not high in these areas as the borrowers are usually salaried persons having regular
income? Further, bank's interest rate is also higher. Hence, banks improve their profit through
such profitable loans.
10. Securitization of Loans:
Banks are recently trying to securities a part of their part of loan portfolio and sell it to another
investor. Under this method, banks will convert their business loans into a security or a
document and sell it to some Investment or Fund Manager for cash to enhance their liquidity
position.
It is a process of transferring credit risk from the banker to the buyer of securitized loans. It
involves a cost to the banker but it helps the bank to ensure proper recovery of loan.
Accordingly, securitization is the process of changing an illiquid asset into a liquid asset.
11. Others:
Commercial banks provide other types of advances such as venture capital advances, jewel
loans, etc.
1. Effective October 18, 1994 banks were free to determine their own prime lending rates (PLRs)
for credit limit over Rs. 2 lakh. Data relate to public sector banks.
2. The stipulation of minimum maturity period of term deposits was reduced from 30 days to 15
days, effective April 29, 1998. Data relate to public sector banks.
3. The change in the Bank Rate was made effective from the close of business of respective dates
of change except April 29, 1998.
4. Effective April 29, 1998.
C. Credit Creation
Credit creation is one of the primary functions of commercial banks. When a bank sanctions a
loan to the customer, it does not give cash to him. But, a deposit account is opened in his name
and the amount is credited to his account. He can withdraw the money whenever he needs.

Thus, whenever a bank sanctions a loan it creates a deposit. In this way the bank increases the
money supply of the economy. Such functions are known as credit creation.
Secondary Functions
The secondary functions of the banks consist of agency functions and general utility functions.
A. Agency Functions
Agency functions include the following:
(i) Collection of cheques, dividends, and interests:
As an agent the bank collects cheques, drafts, promissory notes, interest, dividends etc., on
behalf of its customers and credit the amounts to their accounts.
Customers may furnish their bank details to corporate where investment is made in shares,
debentures, etc. As and when dividend, interest, is due, the companies directly send the
warrants/cheques to the bank for credit to customer account.
(ii) Payment of rent, insurance premiums:
The bank makes the payments such as rent, insurance premiums, subscriptions, on standing
instructions until further notice. Till the order is revoked, the bank will continue to make such
payments regularly by debiting the customer's account.
(iii) Dealing in foreign exchange:
As an agent the commercial banks purchase and sell foreign exchange as well for customers as
per RBI Exchange Control Regulations.
(iv) Purchase and sale of securities:
Commercial banks undertake the purchase and sale of different securities such as shares,
debentures, bonds etc., on behalf of their customers. They run a separate 'Portfolio Management
Scheme' for their big customers.
(v) Act as trustee, executor, attorney, etc:
The banks act as executors of Will, trustees and attorneys. It is safe to appoint a bank as a trustee
than to appoint an individual. Acting as attorneys of their customers, they receive payments and
sign transfer deeds of the properties of their customers.
(vi) Act as correspondent:
The commercial banks act as a correspondent of their customers. Small banks even get travel
tickets, book vehicles; receive letters etc. on behalf of the customers.
(vii) Preparations of Income-Tax returns:

They prepare income-tax returns and provide advices on tax matters for their customers. For this
purpose, they employ tax experts and make their services, available to their customers.
B. General Utility Services
The General utility services include the following:
(i) Safety Locker facility:
Safekeeping of important documents, valuables like jewels are one of the oldest services
provided by commercial banks. 'Lockers' are small receptacles which are fitted in steel racks and
kept inside strong rooms known as vaults. These lockers are available on half-yearly or annual
rental basis.
The bank merely provides lockers and the key but the valuables are always under the control of
its users. Any customer cannot have access to vault.
Only customers of safety lockers after entering into a register his name account number and time
can enter into the vault. Because the vault is holding important valuables of customers in lockers,
it is also known as 'Strong Room'.
(ii) Payment Mechanism or Money Transfer:
Transfer of funds is one of the important functions performed by commercial banks. Cheques
and credit cards are two important payment mechanisms through banks. Despite an increase in
financial transactions, banks are managing the transfer of funds process very efficiently.
Cheques are also cleared through the banking system. Correspondent banking is another method
of transferring funds over long distance, usually from one country to another. Banks, these days
employ computers to speed up money transfer and to reduce cost of transferring funds.
Electronic Transfer of funds is also known as 'Chequeless banking' where funds are transferred
through computers and sophisticated electronic system by using code words. They offer Mail
Transfer, Telegraphic Transfer (TT) facility also.
(iii) Travelers' cheques:
Travelers Cheques are used by domestic travelers as well as by international travelers. However
the use of traveler's cheques is more common by international travelers because of their safety
and convenience. These can be also termed as a modified form of traveler's letter of credit.
A bank issuing travelers cheques usually have banking arrangement with many of the foreign
banks abroad, known as correspondent banks. The purchaser of traveler's cheques can encase the
cheques from all the overseas banks with whom the issuing bank has such an arrangement.
Thus traveler's cheques are not drawn on specific bank abroad. The cheques are issued in foreign
currency and in convenient denominations of ten, twenty, fifty, one hundred dollar, etc. The
signature of the buyer/traveler is written on the face of the cheques at the time of their purchase.

The cheques also provide blank space for the signature of the traveler to be signed at the time of
encashment of each cheque. A traveler has to sign in the blank space at the time of drawing
money and in the presence of the paying banker.
The paying banker will pay the money only when the signature of the traveler tallies with the
signature already available on the cheque.
A traveler should never sign the cheque except in the presence of paying banker and only when
the traveler desires to encash the cheque. Otherwise it may be misused. The cheques are also
accepted by hotels, restaurants, shops, airlines companies for respectable persons.
Encashment of a traveler cheque abroad is tantamount to a foreign exchange transaction as it
involves conversion of domestic currency into a foreign currency.
When a traveller cheque is lost or stolen, the buyer of the cheques has to give a notice to the
issuing bank so that stop order can be issued against such lost/stolen cheques to the banks where
they are permitted to be encased.
It is also difficult to the finder of the cheque to draw cash against it since the encasher has to sign
the cheque in the presence of the paying banker. Unused travellers cheques can be surrendered to
the issuing bank and balance of cash obtained.
The issuing bank levies certain commission depending upon the number and value of travellers
cheques issued.
(iv) Circular Notes or Circular Letters of Credit:
Under Circular Letters of Credit, the customer/traveller negotiates the drafts with any of the
various branches to which they are addressed. Thus the traveller can obtain funds from many of
the branches of banks instead only from a particular branch. Circular Letters of Credit are
therefore a more useful method for obtaining funds while travelling to many countries.
It may be noted that travellers letter of credit are usually paid for in advance. In other words, the
traveller first makes payments to the issuing bank before obtaining the Circular Notes.
(v) Issue "Travellers Cheques":
Banks issue travellers cheques to help carry money safely while travelling within India or
abroad. Thus, the customers can travel without fear, theft or loss of money.
(vi) Letters of Credit:
Letter of Credit is a payment document provided by the buyer's banker in favour of seller. This
document guarantees payment to the seller upon production of document mentioned in the Letter
of Credit evidencing dispatch of goods to the buyer.
The Letter of Credit is an assurance of payment upon fulfilling conditions mentioned in the
Letter of Credit. The letter of credit is an important method of payment in international trade.
There are primarily 4 parties to a letter of credit.

The buyer or importer, the bank which issues the letter of credit, known as opening bank, the
person in whose favour the letter of credit is issued or opened (The seller or exporter, known as
'Beneficiary of Letter of Credit'), and the credit receiving/advising bank.
The Letter of Credit is generally advised/sent through the seller's bank, known as Negotiating or
Advising bank. This is done because the conditions mentioned in the Letter of Credit are, in the
first instance; have to be verified by the Negotiating Bank. It is mostly used in international
trade.
(vii) Acting as Referees:
The banks act as referees and supply information about the business transactions and financial
standing of their customers on enquiries made by third parties. This is done on the acceptance of
the customers and help to increase the business activity in general.
(viii) Provides Trade Information:
The commercial banks collect information on business and financial conditions etc., and make it
available to their customers to help plan their strategy. Trade information service is very useful
for those customers going for cross-border business. It will help traders to know the exact
business conditions, payment rules and buyers' financial status in other countries.
(ix) ATM facilities:
The banks today have ATM facilities. Under this system the customers can withdraw their
money easily and quickly and 24 hours a day. This is also known as 'Any Time Money'.
Customers under this system can withdraw funds i.e., currency notes with a help of certain
magnetic card issued by the bank and similarly deposit cash/cheque for credit to account.
(x) Credit cards:
Banks have introduced credit card system. Credit cards enable a customer to purchase goods and
services from certain specified retail and service establishments up to a limit without making
immediate payment. In other words, purchases can be made on credit basis on the strength of the
credit card.
The establishments like Hotels, Shops, Airline Companies, Railways etc., which sell the goods or
services on credit forward a monthly or fortnightly statements to the bank.
The amount is paid to these establishments by the bank. The bank subsequently collects the dues
from the customers by debit to their accounts. Usually, the bank receives certain service charges
for every credit card issued. Visa Card, BOB card are some examples of credit cards.
(xi) Gift Cheques:
The commercial banks offer Gift cheque facilities to the general public. These cheques received
a wider acceptance in India. Under this system by paying equivalent amount one can buy gift
cheque for presentation on occasions like Wedding, Birthday.
(xii) Accepting Bills:

On behalf of their customers, the banks accept bills drawn by third parties on its customers. This
resembles the letter of credit. While banks accept bills, they provide a better security for payment
to seller of goods or drawer of bills.
(xiii) Merchant Banking:
The commercial banks provide valuable services through their merchant banking divisions or
through their subsidiaries to the traders. This is the function of underwriting of securities. They
underwrite a portion of the Public issue of shares, Debentures and Bonds of Joint Stock
Companies.
Such underwriting ensures the expected minimum subscription and also convey to the investing
public about the quality of the company issuing the securities. Currently, this type of services can
be provided only by separate subsidiaries, known as Merchant Bankers as per SEBI regulations.
(xiv) Advice on Financial Matters:
The commercial banks also give advice to their customers on financial matters particularly on
investment decisions such as expansion, diversification, new ventures, rising of funds etc.
(xv) Factoring Service:
Today the commercial banks provide factoring service to their customers. It is very much helpful
in the development of trade and industry as immediate cash flow and administration of debtors'
accounts are taken care of by factors. This service is again provided only by a separate subsidiary
as per RBI regulations.
Balance sheet is a statement of assets and liabilities on a given date. In India, banks have to
publish their balance sheets according to the preformed i.e., 'Form A' given in the III schedule of
the Banking Regulation Act, 1949. The study of the balance sheet along with its profit and loss
account reveals its financial soundness.
A customer has to carefully study these statements to choose his banks. The combined balance
sheet of all banks in the country reveals certain economic trends. A specimen of a Bank's
Balance Sheet is given at the end of this chapter.

6.2Modify the existing methods/ process /procedure to manage respective
business function:
 Deposit in their bank account without deposit slip. This will help to illiterate customers
who are unable to fill deposit slip and they can easily deposit money in their account in
less time.
 Withdraw money without Withdrawal slip from their bank account.
 Open a new bank account with a machine by linking aadhar number to reduce the paper
work.
 Provide services to the customers by visiting their home.
 Provide service for doing new FD or RD on customer’s net banking. So they can easily
do it from their home without visiting the branch.
 Provide a facility on Bank website for sending a request for opening new bank account or
for any loan related query.
 Provide bank loan approval facility on website by this customer can easily check their
eligibility for loan.
 Sanction a loan in less time so customers will attract towards the bank loan service.
 Provide overdraft facility on Debit card also and recover that with interest when customer
will deposit the money in their bank account.
 Provide every month bank statement on customer Email id.
 Register credit card with net banking by this customer can easily make payment of their
credit card.
 Provide a facility to request a Cheque book online.
 ATM door will open by thumb impression so only those can enter who has a bank
account and bank will easily found in case of any fraud.
 Provide a facility to customers for withdrawn money from ATM without card by figure
print or thumb impression. It will reduce the fraud or theft case.

7. Bibliography
Web:
https://www.pnbindia.in/deposit.html
https://www.pnbindia.in/annual-reports.html
https://www.pnbindia.in/corporate-mission.html
https://en.wikipedia.org/wiki/Punjab_National_Bank
http://www.moneycontrol.com/stocks/sectors/banks-public-sector.html
Books:
 Books of Instruction on loans(PNB)
 PNB annual Reports
 RBI Circulars and Guidelines
 PNBOA’S Loan Compendium.

Study on Retail Banking Transformations in India - PNB

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