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CUSTOMER SATISFACTION IN PNB 0541914308

PROJECT REPORT ON CUSTOMER SATISFACTION IN PNB


SUMMER TRAINING PROJECT REPORT Submitted for Partial Fulfilment for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION MBA (PT) (2008-11)


UNDER THE GUIDANCE OF

Dr. ----------------SUBMITTED BY -------------MBA (PT) 3rd Sem (0541914308)


GITARATTAN INTERNATIONAL BUSINESS SCHOOL (Affiliated to GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY) ROHINI, NEW DELHI -110085 2008-11

Gitarattan International Business School

CUSTOMER SATISFACTION IN PNB 0541914308

INTRODUCTION
OBJECTIVES OF STUDY SCOPE OF STUDY LIMITATION OF STUDY PROFILE OF BANK ACHIEVEMENTS VISION & MISSION VALUE & ETHICS SWOT ANALYSIS PRODUCTS & SERVICES LITERATURE REVIEW AWARDS AND DISTINCTIONS CUSTOMER SATISFACTION BENEFITS OF CUSTOMER SATISFACTION WHAT CONSTITUTES SATISFACTION? WHAT ARE THE TOOLS CUSTOMER SATISFACTION SURVEYS

8
8 8-9 10-13 14-15 16 16 17-18 19 20 21 22 23 24 25 25-31

RESEACH METODLOGY & DESIGN

32-34

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CUSTOMER SATISFACTION IN PNB 0541914308 SAMPLE METHOD SAMPLING METHOD SAMPLE SIZE METHOD OF DATA COLLECTION TYPES OF DATA 35 36 36 36 36-37

DATA ANALYSIS &INTERPRETATION


38
39 40 41-42 43-44

SHARE OF DIFFERENT TYPES OF ACCOUNTS SATISFACTION OF RESPONDENTS WITH SERVICES OFFERED INSURANCE COMPANY

RATINGS OF THE SERVICES OFFERED BY THE RESPONDENTS LIFE TABLE SHOWING MOTIVE BEHIND THE SELECTING PNB CONSUMERS WILLINGNESS TO RECOMMEND THEIR LIFE INSURANCE COMPANY TO OTHERS 44-45 CONSUMERS WILLINGNESS TO SHIFT THEIR A/Cs 45-46

CONCLUSION SUGGESTIONS & RECOMMENDATION REFRENCES ANNEXURE; QUESTIONNAIRE

47 48-50 51 52-55

EXECUTIVE SUMMARY

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CUSTOMER SATISFACTION IN PNB 0541914308 This project at Punjab National Bank was undertaken during the period of 45 days as part of my summer training. As part of summer training, I was made to accompany customer relationship officer to observe client interaction, gauge the level of satisfaction by listening and solving queries of existing clients also helped in making new clients. My Summer Training included the following: An In-depth Induction through the Computer Based Training Module Learning the Basics of the various Banking Operations such as Procedure of Opening New Account (Savings, Current), Printing and Updating of Passbook, procedure of opening a F.D., deposits and withdrawals, issuing of ATM Cards and internet banking passwords etc. Punjab National Bank is providing maximum amount of loan among PSBs Various Documents necessary or required at the time of Opening of Account and Sanctioned of Loan Accompanying Customer Relationships Officer to observe client interaction During the course of my training, I got valuable insights about the working in a bank branch, internet banking and client interface.

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CUSTOMER SATISFACTION IN PNB 0541914308

INTRODUCTION

OBJECTIVES OF THE STUDY

To have an insight into the attitudes and behaviours of customers. To find out the differences among perceived service and expected service. To produce an executive service report to upgrade service characteristics. To understand consumers preferences. To access the degree of satisfaction of the consumers

SCOPE OF THE STUDY


This study is limited to the consumers with in New Delhi city. The study will be able to reveal the preferences, needs, satisfaction of the customers regarding the banking services, It also help banks to know whether the existing products or services the are offering are really satisfying the customers needs

LIMITATIONS OF THE STUDY


Although the study was carried out with extreme enthusiasm and careful planning there are several limitations, which handicapped the research viz, 1. Time Constraints:

The time stipulated for the project to be completed is less and thus there are chances that some information might have been left out, however due care is taken to include all the relevant information needed.

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CUSTOMER SATISFACTION IN PNB 0541914308

2.

Sample size:

Due to time constraints the sample size was relatively small and would definitely have been more representative if I had collected information from more respondents. 3. Accuracy:

It is difficult to know if all the respondents gave accurate information; some respondents tend to give misleading information. 4. It was difficult to find respondents as they were busy in their schedule, and collection of data was very difficult. Therefore, the study had to be carried out based on the availability of respondents.

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CUSTOMER SATISFACTION IN PNB 0541914308 1. PROFILE OF THE BANK Punjab National Bank (PNB) was registered on May 19, 1894 under the Indian Companies Act with its office in Anarkali Bazaar Lahore. The Bank is the second largest government-owned commercial bank in India with about 4,500 branches across 764 cities. It serves over 37 million customers. The bank has been ranked 248th biggest bank in the world by Bankers Almanac, London. The bank's total assets for financial year 2007 were about US$60 billion. PNB has a banking subsidiary in the UK, as well as branches in Hong Kong and Kabul, and representative offices in Almaty, Dubai, Oslo, and Shanghai. 1895: PNB commenced its operations in Lahore. PNB has the distinction of being the first Indian bank to have been started solely with Indian capital that has survived to the present. (The first entirely Indian bank, the Ouch Commercial Bank, was established in 1881 in Faizabad, but failed in 1958.) PNB's founders included several leaders of the Swadeshi movement such as Dyal Singh Majithia and Lala HarKishen Lal,[1] Lala Lalchand, Shri Kali Prosanna Roy, Shri E.C. Jessawala, Shri Prabhu Dayal, Bakshi Jaishi Ram, and Lala Dholan Dass. Lala Lajpat Rai was actively associated with the management of the Bank in its early years. 1904: PNB established branches in Karachi and Peshawar. 1940: PNB absorbed Bhagwan Dass Bank, a scheduled bank located in Delhi circle. 1947: Partition of India and Pakistan at Independence. PNB lost its premises in Lahore, but continued to operate in Pakistan. 1951: PNB acquired the 39 branches of Bharat Bank (est. 1942); Bharat Bank became Bharat Nidhi Ltd. 1961: PNB acquired Universal Bank of India.

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CUSTOMER SATISFACTION IN PNB 0541914308 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 offices 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). 1960s: PNB amalgamated Indo Commercial Bank (est. 1933) in a rescue. 1969: The Government of India (GOI) nationalized PNB and 13 other major commercial banks, on July 19, 1969. 1976 or 1978: PNB opened a branch in London. 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. 1986: PNB acquired Hindustan Commercial Bank (est. 1943) in a rescue. The acquisition added Hindustan's 142 branches to PNB's network. 1993: PNB acquired New Bank of India, which the GOI had nationalized in 1980. 1998: PNB set up a representative office in Almaty, Kazakhstan. 2003: PNB took over Nedungadi Bank, the oldest private sector bank in Kerala. Rao Bahadur T.M. Appu Nedungadi, 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 Coimbatore 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. PNB also opened a representative office in London. 2004: PNB established a branch in Kabul, Afghanistan. PNB also opened a representative office in Shanghai.

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CUSTOMER SATISFACTION IN PNB 0541914308 PNB established an alliance with Everest Bank in Nepal that permits migrants to transfer funds easily between India and Everest Bank's 12 branches in Nepal.

2005: PNB opened a representative office in Dubai. 2007: PNB established PNBIL - Punjab National Bank (International) - in the UK, with two offices, one in London, and one in South Hall. Since then it has opened a third branch in Leicester, and is planning a fourth in Birmingham. Gatin Gupta became Chairmen of Punjab National Bank.

2008: PNB opened a branch in Hong Kong. 2009: PNB opened a representative office in Oslo, Norway.

Board of Directors

SN 1

Name Shri S. S. Kohli Chairman & Managing Director

Residential address J-170, Rajdoot Marg, Chanakya Puri New Delhi

Other Directorships PNB Capital Services PNB Housing Finance PNB Gilts

Ltd Ltd Ltd

Shri T S 8, Asiad Village PNB Capital Services Ltd Narayanasami Major Dhyanchand Marg, PNB Housing Finance Ltd Executive Director New Delhi-110 049 PNB Asset Management Services Ltd Shri P M Sirajuddin D-II, West Y.S.P. Thorat Kidwai 206 Nil Nagar,

3 4

5 6

Shri P R Mehta Shri K.D. Khera

B/6, Dhanastra Nil 122, Natahamal Parikh Marg, Colaba, Mumbai 400 005 47, Nehru Nagar, Nil Model Town, Ludhiana. 141 022 15/2, West Patel Nagar, Nil New Delhi 110 008

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CUSTOMER SATISFACTION IN PNB 0541914308 7 8 9 10 11 Shri K.S.Sampath New No.21/1, Old No. 9/1, Ramanujam Street, T. Nagar, Chennai 17 Shri V.K. Vadhera Shanti Kutir 96, Gautam Nagar New Delhi 110 049 Shri Ashok Jain 118, Jaipur House Agra 282 010 Shri Sudarshan N-62, Greater Kailash Part Sareen I, New Delhi 110 048 Shri Virander 29, Sector 5 Kumar Sibal Chandigarh Nil Nil Uttar Pradesh State Road Transport Corporation (U.P.S.R.T.C.) Nil Nil

The Directors of the Bank do not have any pending litigations or cases pertaining to economic offenses or any other liabilities in their personal capacities. SEBI or any other regulatory body in India or abroad on the directors has levied no penalty.

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CUSTOMER SATISFACTION IN PNB 0541914308

2. ACHIEVEMENTS Punjab National Bank announced its Q1FY2010 results on 29 July 2009, delivering 62% y-o-y growth in net profits to Rs832 crore (Rs512cr), substantially ahead of expectations on account of large treasury gains, apart from healthy operating performance.

While the banks deposit growth was reasonably robust at 4.4% sequentially and 26.5% y-o-y, unlike the peers its growth in advances also remained strong at 38% y-o-y.

In spite of being at the forefront of PLR cuts, the bank posted a healthy growth in Net Interest Income (NII) of 29% y-o-y.

Other Income surged 113% y-o-y, driven by strong treasury gains of Rs355 crore during the quarter in line with industry trends, even as Fee income was also robust at 45% y-o-y, on the back of strong balance sheet growth.

Operating expenses were higher than expected on account of Rs150 crore of provisions for imminent wage hikes.

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CUSTOMER SATISFACTION IN PNB 0541914308

Gross and Net NPA ratios remained stable sequentially at 1.8% and 0.2%, with the bank not adopting the guidelines of treating floating provisions as part of tier 2 capital instead of adjusting against NPAs on express permission from the RBI.

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CUSTOMER SATISFACTION IN PNB 0541914308 2.1 VISION AND MISSION Vision To evolve and position the bank as a world class, progressive, cost effective and customer friendly institution providing comprehensive financial and related services. Integrating frontiers of technology and serving various segments of society especially weaker section. Commited to excellence in serving the public and also excelling in corporate values

Mission To provide excellent professional services and improve its position as a leader in financial and related services. Build and maintain a team of motivated workforce with high work ethos. Use latest technology aimed at customer satisfaction and act as an effective catalyst for socio economic development.

2.2 VALUES AND ETHICS


Bonding and Integrity Ethical conduct Periodic disclosure Confidentiality and fair dealing Compliance with rules and regulations

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CUSTOMER SATISFACTION IN PNB 0541914308

2.3 STRENGTH

SWOT ANALYSIS

Wide network Large number of customers Fast adaptability to technology Brand image

WEAKNESS

Casual behaviour Corruption and red tapism Slow decision making due to large hierarchy High gross NPA

OPPORTUNITIES

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CUSTOMER SATISFACTION IN PNB 0541914308

Home to home banking services Diversification towards other fields Globalization

THREATS

Stiff competition from SBI and other private players.

2.4 PRODUCTS AND SERVICES

Savings Fund Account - Total Freedom Salary Account, PNB Prudent Sweep, PNB Vidyarthi SF Account, PNB Mitra SF Account Current Account - PNB Vaibhav, PNB Gaurav, PNB Smart Roamer Fixed Deposit Schemes - Spectrum Fixed Deposit Scheme, Anupam Account, Mahabachat Schemes, Multi Benefit Deposit

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CUSTOMER SATISFACTION IN PNB 0541914308 Scheme Credit Schemes - Flexible Housing Loan, Car Finance, Personal Loan, Credit Cards Social Banking - Mahila Udyam Nidhi Scheme, Krishi Card, PNB Farmers Welfare Trust Corporate Banking - Gold Card scheme for exporters, EXIM finance Business Sector - PNB Karigar credit card, PNB Kushal Udhami, PNB Pragati Udhami, PNB Vikas Udhami Apart from these, and the PNB also offers locker facilities, senior citizens schemes, PPF schemes and various E-services.

LITERATURE REVIEW

History of Banking in India 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

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CUSTOMER SATISFACTION IN PNB 0541914308 to the remote corners of the country. This is one of the main reason of India's growth process. The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalisation 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 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 have 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 Nationalisation 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.

2.5 AWARDS AND DISTINCTIONS Ranked among top 50 companies by the leading financial daily, Economic Times. Ranked as 323rd biggest bank in the world by Bankers Almanac (January 2006), London. Earned 9th place among India's Most Trusted top 50 service brands in Economic Times- A.C Nielson Survey. Included in the top 1000 banks in the world according to The Banker, London. Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of Directors.

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CUSTOMER SATISFACTION IN PNB 0541914308 FICCI's Rural Development Award for Excellence in Rural Development 2005

3.1 CUSTOMER SATISFACTION


Customer satisfaction refers to the extent to which customers are happy with the products and services provided by a business. Customer satisfaction levels can be measured using survey techniques and questionnaires

DEFINITIONS:
Definition 1: Customer satisfaction is equivalent to making sure that product and service performance meets customer expectations.

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CUSTOMER SATISFACTION IN PNB 0541914308 Definition 2: Customer satisfaction is the perception of the customer that the outcome of a business transaction is equal to or greater than his/her expectation. Definition 3: Customer satisfaction occurs when acquisition of products and/or services provides a minimum negative departure from expectations when compared with other acquisitions.

Gaining high levels of customer satisfaction is very important to a business because satisfaction customers are most likely to be loyal and to make repeat orders and to use a wide range of services offered by a business There are many factors which lead in high levels of customer satisfaction including. Products and services which are customer focused and hence provide high levels of value for money. What is clear about customer satisfaction is that customers are most likely to appreciate the goods and services that they buy if they are made to feel special. This occurs when they feel that the products and services that they buy have been specially produced for them or for people like them.

3.2 BENEFITS OF CUSTOMER SATISFACTION


The importance of customer satisfaction and support is increasingly becoming a vital business issue as organization realize the benefits of Customer Relationship Management (CRM) for providing effective customer service. Professionals working within customer-focused business or those running call centers or help desks, need to keep informed about the latest customer satisfaction techniques for running a valuable customer service function. From small customer service departments to large call centers,

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CUSTOMER SATISFACTION IN PNB 0541914308 the importance of developing a valued relationship with customers using CRM is essential to support customer and long-term business growth. What Do Customers Want? Before we begin to create tools to measure the level of satisfaction, it is important to develop a clear understanding of what exactly the customer wants. We need to know what our customers expect from the products and services we provide. Customer expectations have two types

Expressed Implied

Expressed Customer Expectations are those requirements that are written down n the contract and agreed upon by both parties for example, product specifications and delivery requirements. Suppliers performance against these requirements is most of the items directly measurable. Implied Customer Expectations are not written or spoken but are the ones the customer would expect the supplier to meet nevertheless. For example, a customer would expect the service representative who calls on him to be knowledgeable and competent to solve a problem on the spot. There are many reasons why customer expectations are likely to change overtime. Process improvements, advent of new technology, changes in customers priorities, improved quality of service provided by competitors are just a few examples. The customer is always right. Suppliers job is to provide the customer what he/she wants, when he/she wants it. Customer satisfaction is customers perception that a supplier has met or exceeded their expectations.

3.3 CONSTITUTES WHAT SATISFACTION?

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CUSTOMER SATISFACTION IN PNB 0541914308

We cannot create customer satisfaction just by meeting customers requirements fully because these have to be met in any case. However failing short is certain to create dissatisfaction Major Attributes of customer satisfaction in banking industry can be summarized as: Product quality Premium Outflow Return on Investment Services Responsiveness and ability to resolve complaints and reject reports. Overall communication, accessibility and attitude.

WHAT ARE THE TOOLS? Customer expectations can be identified using various methods such as: Periodic contract reviews Market research Telephonic interviews Personal visits Warranty records Informal discussions Satisfaction surveys Depending upon the customer base and available resources, we can choose a method that is most effective in measuring the customers perceptions. The purpose of the

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CUSTOMER SATISFACTION IN PNB 0541914308 exercise is to identify priorities for improvements. We must develop a method or combination of methods that helps to continually improve service.

3.4 CUSTOMER SATISFACTION SURVEYS


Formal survey has emerged as by far the best method of periodically the customer satisfaction. The survey are not marketing tools but an informationgaining tool. Enough homework needs to be before embarking on the actual survey. This includes: Defining Objectives of the Survey Design Survey approach Develop questionnaires and forms Administer Survey (Email, Telephone or Post) Method of compiling data and analyzing the findings Format of the report to present the findings There is no point in asking irrelevant questions on a customer satisfaction questionnaire. The basic purpose is to find out what we are doing right or wrong. Where is the scope for improvement, where do we stand vis--vis other suppliers. How we can serve the customer better? A customer satisfaction measurement survey should at least identify the following objectives: Importance to customers (Customers priorities) Customers perception of suppliers performance Your performance relative to customers priorities. Priorities for improvement

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CUSTOMER SATISFACTION IN PNB 0541914308 Survey forms should be easy to fill out with minimum amount of time and efforts on customers part. They should be designed to actively encourage the customer to complete the questions. Yet they must provide accurate data should also be sufficiently reliable for management decision making. This can be achieved by incorporating objective type questions where customer has to rate on scale of say 1 to 10. For repeated surveys, you could provide the rating that was previously accorded by the customer. This works like a reference point for the customer. Space should always be provided for the customers own opinions this enables them to state any additional requirements or report any shortcomings that are not covered by the objective questions. Normally, we deal various personnel at various levels in the customers organizationthe buyer, user, receiving inspector, finance and purchase person etc. surveying a number of respondents for each customer gives a complete perspective of customer satisfaction. It may be necessary to device a different questionnaire for each of them. Respondents must be provided a way to express the importance they attach to various survey parameters. Respondents should be asked to give a weighting factor, again on a rating scale of say, 1 to 10, for each requirement. This gives a better indication of relative importance of each parameter towards overall customer satisfaction and makes it easier for suppliers to prioritize their action plans by comparing the performance rating (scores) with importance rating (weighing).

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CUSTOMER SATISFACTION IN PNB 0541914308

4.1 CONSUMER RESEARCH IN DIFFERENT DISCIPLINES A considerable body of literature exists on consumption, consumer behaviour and consumer decision making process. Most of the consumer research focused on adopter categories, habits, attitudes and intentions rather that on actually measuring the satisfaction level with the service.

4.1.1 CONSUMER SATISFACTION PROCESS

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CUSTOMER SATISFACTION IN PNB 0541914308 The paramount goal of marketing is to understand the customer and to influence buying behaviour. The process can be depicted as follows: Need recognition- realization of the difference between the desired and the current situation that serves as a trigger for entire process. Search for information. Pre purchase alternative evaluation. Consumption(utilization of the procured option) Post purchase alternative re-evaluation. Divestment(disposal of the unconsumed product and its remnants)

4.2 WAYS FOR MAINTAINING RELATIONS WITH THE CUTOMERS ADOPTED BY PNB The ability of the banking industry to achieve the socio-economic objectives and in the process bringing more and more customers into its fold will ultimately depend on the satisfaction of the customers. We have a strong belief that a satisfied customer is the foremost factor in developing our business. A need was felt by us at Punjab National Bank that in order to become more customers friendly the Bank should come out with Charter of its services for the customers. Citizens' Charter concept was considered as a base instrument to fill this need and accordingly this document was prepared. This document was made in consultation with

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CUSTOMER SATISFACTION IN PNB 0541914308 the users and highlights our Bank's commitments towards the customer satisfaction, thus ensuring accountability and responsibility amongst its officials and staff. This Code for customers not only explains our commitment and responsibilities along with the redressed methods but also specifies the obligation on the part of customers for healthy practices in Customer-Banker relationships. This is not a legal document creating rights and obligations. The Code has been prepared to promote fair banking practices and to give information in respect of various activities relating to customer service. We wish to acknowledge the initiative taken by the Ministry of Finance, Government of India and Ministry of Administrative Reforms and Public Grievances for encouraging us to bring out this Code. We maintain constant consultations with our clientele through various Seminars, Customer Meets, etc. to evaluate improve and widen the range of service to customer. However, all our customers are requested to keep us informed of their experiences about the various services rendered by the Bank and feel free to comment on this Code. We intend to bring it out in many Regional Languages in subsequent years.

COMMON PRACTICES FOLLOWED BY PNB BRANCHES

Display business hours. Render courteous services. Attend to all customers present in the banking hall at the close of business hours.

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CUSTOMER SATISFACTION IN PNB 0541914308 Provide separate 'Enquiry' or 'May I help you' counter at large branches. Offer nomination facility to all deposit accounts (i.e. account opened in individual capacity) and all safe deposit locker hirers (i.e. individual hirers). Display interest rates for various deposit schemes from time to time. Notify change in interest rates on advances. Provide details of various deposit schemes/services of the Bank. Issue Demand Drafts, Pay Orders, etc. Display Time-Norms for various banking transactions. Pay interest for delayed credit of outstation cheques, as advised by Reserve Bank of India (RBI) from time to time. Accord immediate credit in respect of outstation and local cheques upto a specified limit subject to certain conditions, as advised by RBI from time to time. Provide complaint/suggestion box in the branch premises.

Display address of Regional/Zonal and Central Offices as well as Nodal Officer dealing with customer grievances/complaints.

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CUSTOMER SATISFACTION IN PNB 0541914308

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CUSTOMER SATISFACTION IN PNB 0541914308

5.1 STATEMENT OF THE PROBLEM This Study will help us to understand the consumers satisfaction about banking services and products. This study will help banks to understand, how a consumer selects, organizes and interprets the Quality of service and product offered by banks. The market is more aware and realistic about investment and returns from financial products. In this background this study tries to analyze the customer satisfaction towards banking services in general and PNB in particular.

5.2 NEED FOR THE STUDY

The deeper the company understands of consumers needs and satisfaction, the earlier the product or service is introduced ahead of competition, the greater the expected contribution margin. Hence the study is very important.

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CUSTOMER SATISFACTION IN PNB 0541914308 This study will help companies to customize the service and product, according to the consumers need. This study will also help the companies to understand the experience and expectations of the existing customers.

. 5.3 REASERCH METHODOLOGY A descriptive study tries to discover answers to the questions who, what, when, where, and, sometimes, how. The researcher attempts to describe or define a subject, often by creating a profile of a group of problems, people, or events. Such studies may involve the collection of data and the creation of a distribution of the number of times the researcher observes a single event or characteristic (the research variable), or they may involve relating the interaction of two or more variables. Organizations that maintain databases of their employees, customers, and suppliers already have significant data to conduct descriptive studies using internal information. Yet many firms that have such data files do not mine them regularly for the decisionmaking insight they might provide. This descriptive study is popular in business research because of its versatility across disciplines. In for-profit, not-for-profit and government organizations, descriptive investigations have a broad appeal to the administrator and policy analyst for planning,

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CUSTOMER SATISFACTION IN PNB 0541914308 monitoring, and evaluating. In this context, how questions address issues such as quantity, cost, efficiency, effectiveness, and adequacy. Descriptive studies may or may not have the potential for drawing powerful inferences. A descriptive study, however, does not explain why an event has occurred or why the variables interact the way they do.

5.4 SAMPLE METHOD

Convenience sampling method is used for the survey of this project. It is a nonprobability sample. This is the least reliable design but normally the cheapest and easiest to conduct .In this method Researcher have the freedom to choose whomever they find, thus the name convenience. Example includes informal pools of friends and neighbours or people responding to a newspapers invitation for readers to state their position on some public issue.

5.6 SAMPLE SIZE Sample size denotes the number of elements selected for the study. For the present study, 100 respondents were selected at random. All the 100 respondents were the customers of different branches of PNB. 5.7 SAMPLING METHOD

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A sample is a representative part of the population. In sampling technique, information is collected only from a representative part of the universe and the conclusions are drawn on that basis for the entire universe. A convenience sampling technique was used to collect data from the respondents.

5.8 METHOD OF DATA COLLECTION

To know the response, the researcher used questionnaire method. It has been designed as a primary research instrument. Questionnaires were distributed to respondents and they were asked to answer the questions given in the questionnaire. The questionnaires were used as an instrumentation technique, because it is an important method of data collection. The success of the questionnaire method in collecting the information depends largely on proper drafting. So in the present study questions were arranged and interconnected logically. The structured questionnaire will reduce both interviewers and interpreters bias. Further, coding and analysis was done for each questions response to reach into findings, suggestions and finally to the conclusion about the topic.

5.9 TYPES OF DATA

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CUSTOMER SATISFACTION IN PNB 0541914308 Every decision poses unique needs for information, and relevant strategies can be developed based on the information gathered through research. Research is the systematic objective and exhaustive search for and study of facts relevant to the problem Research design means the framework of study that leads to the collection and analysis of data. It is a conceptual structure with in which research is conducted. It facilitates smooth sailing of various research operations to make the research as effective as possible.

PRIMARY DATA
Primary data are those collected by the investigator himself for the first time and thus they are original in character, they are collected for a particular purpose. A well-structured questionnaire was personally administrated to the selected sample to collect the primary data.

SECONDARY DATA
Secondary data are those, which have already been collected by some other persons for their purpose and published. Secondary data are usually in the shape of finished products. Two types of secondary data were collected for the preparation of the project work: Internal Data was generated from companys brochures, manuals and annual reports External Data, on the other hand, was generated from magazines, research books, intranet and internet (websites).

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CUSTOMER SATISFACTION IN PNB 0541914308

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CUSTOMER SATISFACTION IN PNB 0541914308

TABLE 6.1

SHARE OF DIFFERENT TYPES OF ACCOUNTS


SL. No. NATURE ACCOUNTS 1. 2. 3. 4. 5. Total Saving A/Cs Current A/Cs Fixed Deposits Loans Others OF NUMBER RESPONDENTS 78 9 4 3 6 100 OF PERCENTAGE RESPONDENTS 78% 9% 4% 3% 6% 100% OF

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Graph - 6.1 Classification based on nature of A/Cs

Saving A/Cs

Current A/Cs

Fixed Deposits

Loans

Others

Analysis: Above table shows that 78% respondents have Saving A/Cs, and 9% have Current A/Cs and rest of the respondents have 13% share of other A/Cs in total (which includes fixed deposits, loans, and other products) Interpretation: This means most of the respondents are having Saving A/Cs which means the bank deposits are enriching as Saving A/Cs share is most.

TABLE 6.2

SATISFACTION OF RESPONDENTS WITH SERVICES OFFERED BY PNB BRANCH

SL. No. 1.

RESPONSE Satisfied

NUMBER RESPONDENTS 89

OF PERCENTAGE RESPONDENTS 89%

OF

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CUSTOMER SATISFACTION IN PNB 0541914308 2. TOTAL Not satisfied 11 100 11% 100 %

Graph - 6.2 Classification based on satisfaction level of respondents


89

100 No. of respondents 50

11

0 Satisfied Not satisfied

Analysis: From the above table it could be inferred that 89% of the consumers are satisfied with the service and quality of products of their bank. Only 11% of consumers are not satisfied. Interpretation: Most of the respondents are satisfied with the service offered by PNB. Presently the bank offers varieties of services and the customers are getting a good rate of return from their deposits. Customers are getting good service from the bank.

TABLE 6.3

RATINGS

OF

THE

SERVICES

OFFERED

BY

THE

RESPONDENTS LIFE INSURANCE COMPANY

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CUSTOMER SATISFACTION IN PNB 0541914308 NUMBER RESPONDENTS 05 09 76 06 04 100 OF PERCENTAGE RESPONDENTS 5% 9% 76% 6% 4% 100 % OF

SL. No. 1. 2. 3. 4. 5. TOTAL

RATINGS EXCELLENT VERY GOOD GOOD AVERAGE POOR

Graph - 6.3 Classification based on Rating of the service offered by PNB branches

645 9

76 EXCELLENT VERY GOOD GOOD AVERAGE POOR

Analysis: From this table it could be inferred that 76% of the consumers have rated service offered as good, 9% of them have rated them as very good, and 05% of them have rated as excellent and average while only 4% have rated as poor . Interpretation: Service offered by the bank is improving day by day. Returns consumers are getting are also attractive. Majority of the customers rates good, very good and excellent because of the customer service offered by the bank. Banks are providing a good service to the customers due to increased competition in the market. This may be the reason for more satisfaction

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CUSTOMER SATISFACTION IN PNB 0541914308

TABLE 6.4

TABLE SHOWING MOTIVE BEHIND THE SELECTING PNB


SL.NO 1. 2. 3. 4. ATTRIBUTE Brand name Customer service Interest Others SCORE 56 30 12 2 RANK 1 2 3 4

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CUSTOMER SATISFACTION IN PNB 0541914308

Graph - 6.4 Motive behind the Selecting of PNB 60 50 40 No. of 30 respondents 20 10 0 Motives Brand name Customer service Interest Others

56 30 12 2

Analysis: This table show the strengths and weaknesses of the brand, and what are the important criteria or factors on which decision-making is done. From this table we can infer that consumers give more importance for Brand name, secondly they prefer satisfaction, and then returns on investment. Interpretation: This purely shows that people are now looking forward for better customer service in addition to the brand name in which they are investing and the returns they are getting. TABLE 6.5

CONSUMERS WILLINGNESS TO RECOMMEND THEIR LIFE INSURANCE COMPANY TO OTHERS


SL. No. 1. RESPONSES Recommended NUMBER RESPONDENTS 92 OF PERCENTAGE OF RESPONDENTS 92%

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CUSTOMER SATISFACTION IN PNB 0541914308 2. TOTAL Not recommended 08 100 8% 100 %

Graph - 6.5 Classification based on the willingness to recommend PNB branch services to other banks

recommended

Not recommended

Analysis: From this table it can be noted that the majority of consumers (92%) would like to recommend their bank services to others and only 8% of consumers would not like to recommend it to others. Interpretation: Since the competition has increased in the field of benefits and service of banking. So customers are getting good service, so that they are willing to recommend their bank services to others.

TABLE 6.6

CONSUMERS WILLINGNESS TO SHIFT THEIR A/Cs TO OTHER BANKS

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CUSTOMER SATISFACTION IN PNB 0541914308 SL. No. 1. 2. TOTAL RESPONSES Shift Doesnt shift NUMBER RESPONDENTS 8 92 100 OF PERCENTAGE OF RESPONDENTS 8% 92% 100 %

Graph - 6.6 Classification based on the willingness of respondents to shift their A/Cs to other banks

Shift
like to shift their A/Cs to other banks.

Doesn't shift

Analysis: From this table it can be noted that the majority of consumers (92%) doesnt

Interpretation: The reason can be increasing customer satisfaction and quality services offered by the bank.

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CUSTOMER SATISFACTION IN PNB 0541914308

CONCLUSION:
The project entitled A STUDY TO UNDERSTAND THE CUSTOMER SATISFACTION AT PNB has helped me in studying satisfaction about services and products offered to consumers.

Since the opening up of the banking sector, private banks are in the fray each one trying to cover more market share than the other.

Yet, PNB is far behind SBI. PNB must also be alert what with Private Banks (ICICI, HDFC) breathing down its neck. I am sure the bank will find my findings relevant and I sincerely hope it uses my suggestions enlisted, which I hope will take them miles ahead of competition.

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CUSTOMER SATISFACTION IN PNB 0541914308

Gitarattan International Business School

CUSTOMER SATISFACTION IN PNB 0541914308

SUGGESTIONS & RECOMMENDATIONS


With regard to banking products and services, consumers respond at different rates, depending on the consumers characteristics. Hence PNB should try to bring their new product and services to the attention of potential early adopters. Due to the intense competition in the financial market, PNB should adopt better strategies to attract more customers.

Return on investment company reputation and premium outflow are most preferred attributes that are expected by the respondents. Hence greater focus should be given to these attributes.

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CUSTOMER SATISFACTION IN PNB 0541914308

PNB should adopt effective promotional strategies to increase the awareness level among the consumers. PNB should ask for their consumer feedback to know whether the consumers are really satisfied or dissatisfied with the service and product of the bank. If they are dissatisfied, then the reasons for dissatisfaction should be found out and should be corrected in future. The PNB brand name has earned a lot of goodwill and enjoys high brand equity. As there is intense competition, PNB should work hard to maintain its position and offer better service and products to consumers. The bank should try to increase the Brand image through performance and service then, only the customers will be satisfied. Majority of the people find banking important in their life, so PNB should employ the strategies to convert the want in to need which will enrich their business.

In short, I would like to say that the very act of the concerned management at PNB in giving me the job of critically examining consumer satisfaction towards financial products and services of the company is a step in their continual mission of making all round improvements as a means of progress.

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CUSTOMER SATISFACTION IN PNB 0541914308 I am sure the bank has a very bright future to look forward to and will be a trailblazer in its own right.

REFERENCES
There was an immense need and flow of the information. While conducting the analysis as well as while writing the report, which was gathered through various sources mentioned below: -

Internet
http://pnbindia.com last accessed on 2/08/2009 http://moneymarket.com last accessed on 7/08/2009

Other Printed Literature such as


PNB Product Manual Guide Annual General Reports of PNB (2008 2009) PNB Performance Highlights 2008 & 2009

Books
Customer satisfaction measurement simplified - Jeffrey Gitomer Why satisfied customers defect Harvard Business Review nov-dec 1995

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CUSTOMER SATISFACTION IN PNB 0541914308 Customer Satisfaction measurement & management : using the voice of customer - Naumann Giel

QUESTIONNAIRE
Name: Phone off: Occupation Office Address Monthly Income: 5000 10000 And above 10000 20000 Phone Res.

Type of Banks you are holding saving account with-

1. Nationalized / co-operative 2. Private 3. Multinational

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CUSTOMER SATISFACTION IN PNB 0541914308

How long have you been banking with them?

1. Less than 1 year 2. 1-3 year 4year and above

How would you rate your experience with your current bankers?

1. Excellent 2. Good 3. Fair 4. Poor

Do you presently hold a credit Card?

1. Yes 2. No

Does your bank charges you on the transaction that you do on the credit Card? 1. Yes 2. No

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CUSTOMER SATISFACTION IN PNB 0541914308

Which of these factors influenced your decision to open an account with your current bank?

1. Facilities provided by the Bank 2. Recommendation by friend / relatives 3. Advertisement 4. Brand 5. ATMs 6. Branch timing

How important are the banking facilities for you?

services A.T.M Phone Banking Locker facilities Cash / Cheque Pick up Insurance

Not Important

Average Important

Very Important

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CUSTOMER SATISFACTION IN PNB 0541914308 Facilities with Your account Banking Hours Discount in restaurants & Shopping malls Free Drafts /Pay orders 365 days Branch

Banking

Would you be interested in opening a saving account with the Punjab National Bank?

Bank which can be accessed at over 1450 ATMs all over the country for free* 1. Yes 2. No

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