Académique Documents
Professionnel Documents
Culture Documents
Submitted By:
MOHIT KUMAR
Roll No. 14710260
CERTIFICATE
MOHIT KUMAR who carried out the project work under my supervision.
SIGNATURE
DECLARATION
partial
MOHIT KUMAR
ROLL .NO 14710260
ACKNOWLEDGEMENT
When emotions are profound, words sometimes are not sufficient to express our
thanks and gratitude. With these words, I am trying to express my extreme gratitude
and sincere thanks to Mr. Dr. Pradeep Kumar my HOD who have helped and provided
the very much enthusiasm and consistent encouragement required for the completion
of my project.
The successful completion of my research is the blessing of my teachers, parents and
sincere advice of my friends.
I would also like to thank Corporate HR, Training and Development team for all their
valuable assistance in the project work.
I express my thanks to the Principal Rajeev Sir & Faculty Guide Sameer Sir for
extending their support.
Finally, yet most importantly, I would like to express my heartiest thanks to my
beloved parents for their blessings, my friends for their help and wishes for the
successful completion of their project.
MOHIT KUMAR
ROLL .NO 14710260
TABLE OF CONTENTS
Introduction
Company profile
Research Methodology
o
o
o
o
o
o
Research design
Sampling
Universe
Sample size
Sample Unit
SWOT/ETOP analysis
Suggestions/Recommendations
Conclusion
Appendix
Bibliography
Chapter-1
Introduction
Chapter 1
General Introduction
Bank may be defined as a financial institution which is engaged in the business of keeping
money for savings and checking accounts or for exchange or for issuing loans and credit etc.
A set of services intended for private customers and characterized by a higher quality than the
services offered to retail customers.
Based on the notion of tailor-made services, it aims to offer advice on investment, inheritance
plans and provide active support for general transactions and the resolution of asset-related
problems.
The essential function of a bank is to provide services related to the storing of deposits and
the extending of credit.Basic function may include Credit collection, Issuer of banking notes,
Depositor of money and lending loans.
Now a days banking is not in its traditional way , with the advancement of technology its
focusing on more comfort of customer providing services such as:
online banking
investment banking
electronic banking
internet banking
pc banking /mobile banking
e-banking
The importance of banking sector is immense in the progress and prosperity of any State or
country.
A Brief History
Banking in India originated in the last decades of the 18th century. The oldest bank in
existence in India is the State Bank of India, a government-owned bank that traces its origins
back to June 1806 and that is the largest commercial bank in the country. Central banking is
the responsibility of the Reserve Bank of India, which in 1935 formally took over these
responsibilities from the then Imperial Bank of India, relegating it to commercial banking
functions. After India's independence in 1947, the Reserve Bank was nationalized and given
broader powers. In 1969 the government nationalized the 14 largest commercial banks; the
government nationalized the six next largest in 1980.
Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is
with the Government of India holding a stake), 31 private banks (these do not have
government stake; they may be publicly listed and traded on stock exchanges) and 38 foreign
banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According
to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of
total assets of the banking industry, with the private and foreign banks holding 18.2% and
6.5% respectively
Origin of the Industry
Banking in India originated in the last decades of the 18th century. The first banks were The
General Bank of India, which started in 1786, and the Bank of Hindustan, both of which are
now defunct. The oldest bank in existence in India is the State Bank of India, which
originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank
of Bengal. This was one of the three presidency banks, the other two being the Bank of
Bombay and the Bank of Madras, all three of which were established under charters from the
British East India Company. For many years the Presidency banks acted as quasi-central
banks, as did their successors. The three banks merged in 1925 to form the Imperial Bank of
India, which, upon India's independence, became the State Bank of India.
Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a
consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and
still functioning today, is the oldest Joint Stock bank in India. It was not the first though. That
honor belongs to the Bank of Upper India, which was established in 1863, and which
survived until 1913, when it failed, with some of its assets and liabilities being transferred to
the Alliance Bank of Simla.
When the American Civil War stopped the supply of cotton to Lancashire from the
Confederate States, promoters opened banks to finance trading in Indian cotton. With large
exposure to speculative ventures, most of the banks opened in India during that period failed.
The depositors lost money and lost interest in keeping deposits with banks. Subsequently,
banking in India remained the exclusive domain of Europeans for next several decades until
the beginning of the 20th century.
Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire
d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862;
branches in Madras and Pondichery, then a French colony, followed. HSBC established itself
in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade
of the British Empire, and so became a banking center.
The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in
1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank, established in
Lahore in 1895, which has survived to the present and is now one of the largest banks in
India.
Around the turn of the 20th Century, the Indian economy was passing through a relative
period of stability. Around five decades had elapsed since the Indian Mutiny, and the social,
industrial and other infrastructure had improved. Indians had established small banks, most of
which served particular ethnic and religious communities.
The presidency banks dominated banking in India but there were also some exchange banks
and a number of Indian joint stock banks. All these banks operated in different segments of
the economy. The exchange banks, mostly owned by Europeans, concentrated on financing
foreign trade. Indian joint stock banks were generally under capitalized and lacked the
experience and maturity to compete with the presidency and exchange banks. This
segmentation let Lord Curzon to observe, "In respect of banking it seems we are behind the
times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into
separate and cumbersome compartments."
The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi
movement. The Swadeshi movement inspired local businessmen and political figures to
found banks of and for the Indian community. A number of banks established then have
survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of
Baroda, Canara Bank and Central Bank of India.
The fervor of Swadeshi movement lead to establishing of many private banks in Dakshina
Kannada and Udupi district which were unified earlier and known by the name South
Canara ( South Kanara ) district. Four nationalised banks started in this district and also a
leading private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle
of Indian Banking".
Year
Capital
Paid-up
that failed
(Rs. Lakhs)
(Rs. Lakhs)
1913
12
274
35
1914
42
710
109
1915
11
56
1916
13
231
1917
76
25
1918
209
Capital
Post-independence
The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal,
paralyzing banking activities for months. India's independence marked the end of a regime of
the Laissez-faire for the Indian banking. The Government of India initiated measures to play
an active role in the economic life of the nation, and the Industrial Policy Resolution adopted
by the government in 1948 envisaged a mixed economy. This resulted into greater
involvement of the state in different segments of the economy including banking and finance.
The major steps to regulate banking included:
In 1948, the Reserve Bank of India, India's central banking authority, was
nationalized, and it became an institution owned by the Government of India.
In 1949, the Banking Regulation Act was enacted which empowered the Reserve
Bank of India (RBI) "to regulate, control, and inspect the banks in India."
The Banking Regulation Act also provided that no new bank or branch of an existing
bank could be opened without a license from the RBI, and no two banks could have
common directors.
However, despite these provisions, control and regulations, banks in India except the State
Bank of India, continued to be owned and operated by private persons. This changed with the
nationalisation of major banks in India on 19 July, 1969.
Nationalization of Banks
By the 1960s, the Indian banking industry has become an important tool to facilitate the
development of the Indian economy. At the same time, it has emerged as a large employer,
and a debate has ensued about the possibility to nationalise the banking industry. Indira
Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the annual
conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank
Nationalisation." The paper was received with positive enthusiasm. Thereafter, her move was
swift and sudden, and the GOI issued an ordinance and nationalised the 14 largest
commercial banks with effect from the midnight of July 19, 1969. Jayaprakash Narayan, a
national leader of India, described the step as a "masterstroke of political sagacity." Within
two weeks of the issue of the ordinance, the Parliament passed the Banking Companies
(Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval on 9
August, 1969.
A second dose of nationalization of 6 more commercial banks followed in 1980. The stated
reason for the nationalization was to give the government more control of credit delivery.
With the second dose of nationalization, the GOI controlled around 91% of the banking
business of India. Later on, in the year 1993, the government merged New Bank of India with
Punjab National Bank. It was the only merger between nationalized banks and resulted in the
reduction of the number of nationalised banks from 20 to 19. After this, until the 1990s, the
nationalised banks grew at a pace of around 4%, closer to the average growth rate of the
Indian economy.
The nationalized banks were credited by some, including Home minister P. Chidambaram, to
have helped the Indian economy withstand the global financial crisis of 2007- 009
Currently (2007), banking in India is generally fairly mature in terms of supply, product range
and reach-even though reach in rural India still remains a challenge for the private sector and
foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered
to have clean, strong and transparent balance sheets relative to other banks in comparable
economies in its region. The Reserve Bank of India is an autonomous body, with minimal
pressure from the government. The stated policy of the Bank on the Indian Rupee is to
manage volatility but without any fixed exchange rate-and this has mostly been true.
With the growth in the Indian economy expected to be strong for quite some time-especially
in its services sector-the demand for banking services, especially retail banking, mortgages
and investment services are expected to be strong. One may also expect M&As, takeovers,
and asset sales.
In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in
Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has
been allowed to hold more than 5% in a private sector bank since the RBI announced norms
in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by
them.
In recent years critics have charged that the non-government owned banks are too aggressive
in their loan recovery efforts in connection with housing, vehicle and personal loans. There
are press reports that the banks' loan recovery efforts have driven defaulting borrowers to
suicide.
Banks with branches in India as on date
ABN AMRO Bank N.V.
Abu Dhabi Commercial Bank Ltd
American Express Bank
Antwerp Diamond Bank
Arab Bangladesh Bank
Bank International Indonesia
Bank of America
American Banks
The Bank of New York
Wachovia Bank
Australian Banks
Commonwealth Bank
National Bank Australia
Westpac Banking Corporation
Austrian Banks
Raiffeisen Zentral Bank Osterreich
Belgian Banks
Fortis Bank.
K.B.C. Bank N.V.
Canadian Banks
Royal bank of Canada
UAE Banks
Emirates Bank International
French Banks
Credit Industriel et Commercial
Natixis
German Banks
Bayerische Hypo und Vereinsbank
Commerzbank
Dresdner Bank
DZ Bank AG Deutsche Zentral Genossenschafts Bank
HSH Nordbank
Landesbank Baden Wurttemberg
Irish Banks
DEPFA Bank
Italian Banks
Banc Intesa Banca Commerciale Italiana
Banca di Roma
Banca Populare Di Verona E Novara
Banca Popolare di Vicenza
BPU Banca Banche Popolari Unite
Monte Dei Paschi Di Sienna
Sanpaolo IMI Bank
Uni Credito Italiano
Nepalese Banks
Everest Bank
Portuguese Banks
Caixa Geral de Depositos
Russian Banks
Vnesheconombank
VTB India
Promsvyazbank
South African Banks
First Rand Bank
South Korean Banks
Wori Bank
Spanish Banks
Banco de Sabadell
Banco Bilbao Vizcaya Argentaria
SriLankan Banks
Hatton National Bank
Swiss Banks
UBS
Zurcher Kantonalbank
Saqib Saeed Qureshi
competition will only get intensified, as large global players emerge on the scene.
Increasing competition is squeezing profitability and forcing banks to work efficiently on
shrinking spreads. A positive fallout of competition is the greater choice available to
consumers,and the increased level of sophistication and technology in banks. As banks
benchmark themselves against global standards, there has been a marked increase in
disclosures and transparency in bank balance sheets as also greater focus on corporate
governance.
Major Reforms In Banking Sector
Some of the major reform initiatives in the last decade that have changed the face of the
Indian banking and financial sector are:
Interest rate deregulation. Interest rates on deposits and lending have been deregulated
with banks enjoying greater freedom to determine their rates.
Adoption of prudential norms in terms of capital adequacy, asset classification, income
recognition, provisioning, exposure limits, investment fluctuation reserve, etc.
Reduction in pre-exemptions lowering of reserve requirements (SLR and CRR), thus
releasing more lendable resources which banks can deploy profitably. Government equity
in banks has been reduced and strong banks have been allowed to access the capital
market for raising additional capital. Banks now enjoy greater operational freedom in
terms of opening and swapping of branches, and banks with a good track record of
profitability have greater flexibility in recruitment.
New private sector banks have been set up and foreign banks permitted to expand their
operations in India including through subsidiaries. Banks have also been allowed to set up
Offshore Banking Units in Special Economic Zones.
New areas have been opened up for bank financing: insurance, credit cards,
infrastructure financing, leasing, gold
banking, besides of course investment banking, asset management, factoring, etc.
New instruments have been introduced for greater flexibility and better risk
management: e.g. interest rate swaps, forward rate agreements, cross currency forward
contracts, forward cover to hedge inflows under foreign direct investment, liquidity
adjustment facility for meeting day-to-day liquidity mismatch.
Several new institutions have been set up including the National Securities Depositories
Ltd., Central Depositories Services Ltd., Clearing Corporation of India Ltd., Credit
Information Bureau India Ltd. Limits for investment in overseas markets by banks,
mutualfunds and corporates have been liberalised. The overseas investment limit for
corporates has been raised to 100% of net worth and the ceiling of $100 million on
prepayment of external commercial borrowings has been removed. MFs and corporates
can now undertake FRAs with banks. Indians allowed to maintain resident foreign
currency (domestic) accounts. Full convertibility for deposit schemes of NRIs introduced.
Universal Banking has been introduced. With bankspermitted to diversify into long-term
finance and DFIs into working capital, guidelines have been put in place for the evolution
of universal banks in an orderly fashion.
Technology infrastructure for the payments and settlement system in the country has
been strengthened with electronic funds transfer, Centralised Funds Management
System,Structured Financial Messaging Solution, Negotiated Dealing System and move
towards Real Time Gross Settlement.
Adoption of global standards. Prudential norms for capital adequacy, asset classification,
income recognition and provisioning are now close to global standards. RBI has
introduced Risk Based Supervision of banks (against the traditional transaction based
approach).
Best
international
practices
in
accounting
systems,
corporate
RBI guidelines have been issued for putting in place risk management systems in banks.
Risk Management
Committees in banks address credit risk, market risk and operational risk. Banks have
specialised committees to measure and monitor various risks and have been upgrading
their risk management skills and systems.
The limit for foreign direct investment in private banks has been increased from 49% to
74% and the 10% cap on
voting rights has been removed. In addition, the limit for foreign institutional investment
in private banks is 49%.
Wide ranging reforms have been carried out in the area of capital markets. Fresh
investment in CPs, CDs are allowed only in dematerialised form. SEBI has reduced the
settlement cycle from T+3 to T+2 from April 1, 2003 i.e. settlement of stock deals will be
completed in two trading days after the trade is executed, taking the Indian stock trading
system ahead of some of the developed equity markets. Stock exchanges will set up trade
guarantee funds. Retail trading in Government securities has been introduced on NSE and
BSE from January 16, 2003. A Serious Frauds Office is proposed to be set up. Fungibility
of ADRs and GDRs allowed.
Improvement in Performance of Commercial Banks
There is no doubt that banking sector reforms have increased the profitability,
productivity and efficiency of banks. There has been an improvement in overall capital
adequacy of banks and as on March 31, 2002 92 out of 97 commercial banks operating in
India had capital adequacy above the statutory minimum level of 9%. Introduction of
prudential norms relating to asset classification, income recognition and provisioning,
along with legal and institutional reforms, has led to visible improvement in asset quality
in banks. Net NPAs (i.e.that portion of NPAs which is not provided for) have declined
gradually from 10.7% in 1994-95 to 5.8% in 2001-02.Increase in the number of players
has increased competition, which is reflected in the decline in the bank concentration
ratio. The share of top 5 banks in total assets declined from 51.7% in 1991-92 to 43.5% in
2001-02 while its share in
profits fell from 54.5% to 41.4% in the same period.
Challenges Ahead
(i) Improving Profitability:
The most direct result of the above changes is increasing competition and narrowing of
spreads and its impact on the profitability of banks. The challenge for banks is how to
manage with thinning margins while at the same time working to improve productivity
which remains low in relation to global standards. This is particularly important because
with dilution in banksequity, analysts and shareholders now closely track their
performance. Thus, with falling spreads, rising provision for NPAs and falling interest
rates, greater attention will need to be paid to reducing transaction costs. This will require
tremendous efforts in the area of technology and for banks to build capabilities to handle
much bigger volumes.
(ii) Reinforcing Technology:
Technology has thus become a strategic and integral part of banking, driving banks to
acquire and implement world class systems that enable them to provide products and
services in large volumes at a competitive cost with better risk management practices.
The pressure to undertake extensive computerisation is very real as banks that adopt the
latest in technology have an
edge over others. Customers have become very demanding and banks have to deliver
customised products through
multiple channels, allowing customers access to the bank round the clock.
(iii) Risk Management:
The deregulated environment brings in its wake risks along with profitable opportunities,
and technology plays a crucial role in managing these risks. In addition to being exposed
to credit risk, market risk and operational risk, the business of banks would be susceptible
to country risk, which will be heightened as controls on the movement of capital are
eased. In this context, banks are upgrading their credit assessment and risk management
skills and retraining staff, developing a cadre of specialists and introducing technology
driven management information systems.
In such a scenario, banks will need to put in place a code for corporate governance for
benefiting all stakeholders of a corporate entity.
(vii) International Standards:
Introducing internationally followed best practices and observing universally acceptable
standards and codes is necessary for strengthening the domestic financial architecture.
This includes best practices in the area of corporate governance along with full
transparency in disclosures. In todays globalised world, focusing on the observance of
standards will help smooth integration with world financial markets.
Chapter-2
Organizations
Profile
Organizations Profile
Name of organization
Head Office
Strategic business area covers the large Indo-Gangetic belt and the
metropolitan centres.
Ranked as 248th biggest bank in the world by Bankers Almanac ,
London.
Strong correspondent banking relationships with more than 217
international banks of the world.
More than 50 renowned international banks maintain their Rupee
Accounts with PNB.
Well equipped dealing rooms; 20 different foreign currency accounts are
maintained at major centres all over the globe.
Rupee drawing arrangements with M/s UAE Exchange Centre, UAE,
M/s Al Fardan Exchange Co. Doha, Qatar,M/s Bahrain Exchange Co,
Kuwait, M/s Bahrain Finance Co, Bahrain,M/s Thomas Cook Al
Rostamani Exchange Co. Dubai,UAE, and M/s Musandam Exchange,
Ruwi, Sultanate of Oman.
Since its humble beginning in 1895 with the distinction of being the first Indian bank to have
been started with Indian capital, PNB has achieved significant growth in business which at
the end of March 2009 amounted to Rs 3,64,463 crore. Today, with assets of more than Rs
2,46,900 crore, PNB is ranked as the 3rd largest bank in the country (after SBI and ICICI
Bank) and has the 2nd largest network of branches (4668 including 238 extension counters
and 3 overseas offices).During the FY 2008-09, with 39% share of low cost deposits, the
bank achieved a net profit of Rs 3,091 crore, maintaining its number ONE position amongst
nationalized banks. Bank has a strong capital base with capital adequacy ratio as per Basel II
at 14.03% with Tier I and Tier II capital ratio at 8.98% and 5.05% respectively as on
March09. As on March09, the Bank has the Gross and Net NPA ratio of only 1.77% and
0.17% respectively. During the FY 2008-09, its ratio of priority sector credit to adjusted net
bank credit at 41.53% & agriculture credit to adjusted net bank credit at 19.72% was also
higher than the respective national goals of 40% & 18%.
Present Status of the Organization
PNB has always looked at technology as a key facilitator to provide better customer service
and ensured that its IT strategy follows the Business strategy so as to arrive at Best Fit.
The bank has made rapid strides in this direction. Alongwith the achievement of 100% branch
computerization, one of the major achievements of the Bank is covering all the branches of
the Bank under Core Banking Solution (CBS), thus covering 100% of its business and
providing Anytime Anywhere banking facility to all customers including customers of more
than 2000 rural branches. The bank has also been offering Internet banking services to the
customers of CBS branches like booking of tickets, payment of bills of utilities, purchase of
airline tickets etc.Towards developing a cost effective alternative channels of delivery, the
bank with more than 2150 ATMs has the largest ATM network amongst Nationalised Banks.
With the help of advanced technology, the Bank has been a frontrunner in the industry so far
as the initiatives for Financial Inclusion is concerned. With its policy of inclusive growth in
the Indo-Gangetic belt, the Banks mission is Banking for Unbanked. The Bank has
launched a drive for biometric smart card based technology enabled Financial Inclusion with
the help of Business Correspondents/Business Facilitators (BC/BF) so as to reach out to the
last mile customer. The BC/BF will address the outreach issue while technology will provide
cost effective and transparent services. The Bank has started several innovative initiatives for
marginal groups like rickshaw pullers, vegetable vendors, diary farmers, construction
workers, etc.
The Bank has already achieved 100% financial
Backed by strong domestic performance, the bank is planning to realize its global aspirations.
In order to increase its international presence, the Bank continues its selective foray in
international markets with presence in Hongkong, Dubai, Kazakhstan, UK, Shanghai,
Singapore, Kabul and Norway. A second branch in Hongkong at Kowloon was opened in the
first week of April09. Bank is also in the process of establishing its presence in China,
Bhutan, DIFC Dubai, Canada and Singapore. The bank also has a joint venture with Everest
Bank Ltd. (EBL), Nepal.
Future Expansion of the Organization
Under the long term vision, Bank proposes to start its operation in Fiji Island, Australia and
Indonesia. Bank continues with its goal to become a household brand with global expertise.
Amongst Top 1000 Banks in the World, The Banker listed PNB at 250th place. Further,
PNB is at the 1166th position among 48 Indian firms making it to a list of the worlds biggest
companies compiled by the US magazine Forbes.
Parameters
Operating Profit*
Net Profit*
Deposit
Mar'07
3617
1540
139860
Mar'08
4006
2049
166457
Mar'09
5744
3091
209760
CRAR
26.02
41.67
22.47
Advance
Total Business
96597
236456
119502
285959
154703
364463
26.55
24.15
(Rs. In Crores)
* Respective figure for the corresponding financial year
Current Accounts
Smart Romer
PNB Vaibhav
PNB Gaurav
Anupam account
Credit schemes
Housing loan
Car finanace
Personal loan
Professional loan
Social Banking
Farmers
Krishi card
Women
Savings Accounts
TOTAL FREE DOOM SAVING FUNDS SALARY ACCOUNT
Purpose: 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. 15,000/- 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
ELIGIBILITY: OF THE EMPLOYEE AS WELL AS CORPORATES UNDER TIE-UP
ARRANGEMENT:
The employee whose salary account is being opened should be a permanent
The minimum number of accounts to be opened should be 25 or 75% of the
permanent employees of the corporate (in that location),
whichever is lower.
employee.
strength of the
loans to be
balance certificate,
etc;
Free of Cost maintenance of Demat Account (we shall be waiving the charges
by PNB as annual fee, charges payable to NSDL would be
to be earned
basis
Eligibility
Accounts can be opened in the name of students who have attained the age of 10 years and above,
studying at VARIOUS RECOGNISED EDUCATIONAL INSTITUTIONS.
Initial Deposit Amount/ QAB/Minimum Balance Required
Zero
Overdraft Facility
The overdraft facility shall be given to students (of reputed educational institutions only) who are
staying away from their parents. It would be made available on the request of the student with the
UNDERTAKING TO PAY/ CONSENT LETTER from earning parents/natural guardian/local guardian
of student. In the first year of opening of account, the facility would be available up-to a maximum limit
of Rs.5,000/-. Subsequent to the satisfactory conduct of the account, in second year it could be enhanced
upto Rs. 10,000/-. Other terms & conditions of this overdraft facility would be as under:
Rate of Interest
The overdraft facility would attract at the rate of interest as applicable to
Age of Student
Purpose
Repayment
Recovery Aspects
Attractive Freebies/Concessions
The following freebies are also admissible:
Demand drafts for all types
Free of cost
of fees/examination fees
Initial Deposit Amount
Incidental Charges
Ledger Folio Charges
Retail
Internet
Services
Intersol transactions
Banking
including Free
cash withdrawal/deposits
ATM Card/DEBIT CARD
Cheque Book Facility
PNB has launched a No-frills Savings Bank Account Scheme known as PNB
MITRA SAVINGS BANK ACCOUNT that can be opened by an
INDIVIDUAL singly or jointly, minors of the age of 10 years and above, minors
under natural/legal guardianship. An illiterate or a visually impaired person is
also eligible to open account under the scheme with usual safeguards. Simplified
KYC procedures may be adopted for opening of these accounts.
Product Highlights :
Initial
opening
ZERO
of
account
MINIMUM
with
just
BALANCE
Rs.25/-,
requirement;
Our Bank would allow first 50 transactions in a calendar year Free of Charge,
thereafter
charge
of
Rs.10/-
per
transaction
would
be
levied.
Customer would not be allowed to keep balance in this account (taken together
with all
other accounts with our Bank) more than Rs.50,000/- in this account
in
view
of
related
KYC
Norms;.
The Customer shall be able to profitably deploy his funds which were earlier not
attracting any interest. Funds (above Rs. One Lac) lying in Current Accounts and their
ready availability when required for payment/clearance of cheques. The bank would provide
the facility of automatic transfer of balance from Current Accounts having a balance of over
Rs.1,00,000/- (Rupees one lac only) in multiples of Rs.10,000/- (Rupees Ten Thousand
Only) to Fixed Deposit Accounts. Sweep In Funds would be accepted for a minimum
maturity period of 15 days and Maximum maturity period of 45 days. It will be optional
for the customers to indicate desired periodicity in multiples of 15 days. The customer would
get the interest on such deposit at the term deposit rate applicable for the period indicated by
him/her.
Additional Features
(subject to maintenance of stipulated 'minimum balance' in the account throughout during
previous quarter i.e. clear balance on the closing of everyday should have been Rs.25,000/- or
above) :
i.
ii.
Free Debit Card (slated to be introduced by the Bank shortly-publicity on this aspect
will begin only after launch)
iii.
Free remittance of funds upto an extant of Rs. 25000/- per month at any of our
branches having connectivity under CBS.
iv.
One Cheque book of 50 leaves free of cost per quarter to be issued (inclusive of item
no. xii)
v.
vi.
vii.
Free collection of one outstation cheque (issued in favour of customer) per quarter
upto Rs. 10000/-(however, out of pocket expenses shall be recovered)
viii.
ix.
x.
xi.
Transaction i.e. T + 3 Days' Credit for outstation cheques drawn on other bank
branches at locations where we have at least one PNB branch under CBS connectivity.
xii.
If possible, Free Special Cheque Book (under relevant MICR Code) shall also be
issued to customers enabling them to make payment by cheque to outstation parties at
CBS centers.
PNB VAIBHAV ACCOUNT
Features
Quarterly average balance required
Initial Deposit Amount required for opening of the account.
Non-maintenance charges
Free
(of
transaction
charges)
Transactions allowed
Transaction charged/L.F. charges
Inter
sol
transfer
Local non-base branches
Inter
sol
transfer
charges
Free
Free
charges- Free
Features
Quarter
Initial D
Non-ma
Free
Transac
Transac
Inter
Local n
Inter
Outstati
Cash Withdrawals/Deposits charges at outstation Non- Rs.50,000/- per day, thereafter 25%
Base Branches, free upto
discount on normal charges
Charges on payment of outstation Multicity Cheques, Rs.50,000/-per day, thereafter
Free upto
25%
Outstati
Free Sta
Stateme
Remitta
Standin
De-mat
NSDL)
Rebate
Internet
Debit-c
RTGS S
Stop Pa
Interest
A Multi-Option Fixed Deposit Scheme that fit your needs, timing & resources, to match your
convenience
Period of Deposit: (a) Maturity Option: For any period from 15 days to 120 monthsFor a single Term Deposit less than Rs. 15 lac and for any period from 7 days to 120
months-For
single
Deposit
of
Rs.
15
lac
&
above.
(b) Income Option: For any period from 6 months to 120 months.
For an amount of Rs. 10,000/- and above overdraft with cheque book facility is
available, to enable use of deposits. The customer shall also be at liberty to make use
of the facility through ATM-cum-Debit Card under 'Anywhere-Anytime Banking'. It
will enable customers to have freedom to utilise their Fixed Deposits as and when
needed without even coming to the Bank. The interest is chargeable only for the
amount and period for which the overdraft facility has been availed; The illiterate and
blind persons can also open the account without exercising the option of Overdraft
Facility.
Margin and rate of interest on Loans against deposits under the scheme shall be as per
prescribed guidelines which shall be subject to modifications from time to time
ANUPAM ACCOUNT
Our Bank has several Domestic Deposit Schemes designed to cater to the needs of
various segments of customers to meet your specific requirement.
The features of the Anupam Account Deposit Scheme are as under:
1. Participation
Anupam Account Scheme may be opened in the name of individual(s), sole
proprietorship concern, partnership firm, association, trust, Ltd. Company etc.
However, Anupam Account shall not be opened in the name of a minor, illiterate and
blind persons.
2. Minimum Initial Deposit
Rs.10,000/- and thereafter in multiples of Rs.1000/- thereof.
3. Period of Deposit
For any period from 6 months to 120 months. Existing deposits under Multi Benefit
Deposit Scheme for Rs.10,000/- and above with unexpired term of 6 months or more
are eligible for transfer to Anupam Account Scheme.
4. Overdraft Facility
Overdraft facility shall be permitted through a Current Account and a Cheque Book
will be issued to the depositor on the same day.
The margin on the amount of overdraft against the deposit is
For Public
Maturity Period remaining at the time of granting
overdraft
Margin
Upto 2 years
5%
7.5%
10.0%
12.5%
Above 5 years
25%
It entitles you to earn interest at term deposit rates on quarterly compounding basis.
You may open with any amount with a minimum deposit of Rs.1000/- for any
period from 6 months to 120 months.
You can avail the additional facility of automatic renewal of fixed deposit with or
without interest on maturity.
On demand, Loan in this MBFD scheme is also made available by us.
Interest at term deposit rates is computable on quarterly compounded
basis
The small monthly savings in the Recurring Deposit scheme enable
you to accumulate a handsome amount on maturity.
Account can be opened with a minimum monthly deposit of Rs.100/or its multiples for a period of 6 months to 120 months in multiples
of 3 months.
Interest at term deposit rates is computable on quarterly compounded
basis
The small monthly savings in the Recurring Deposit scheme enable
you to accumulate a handsome amount on maturity.
Car Loans
Own a vehicle with the friendliest and most convenient car loan. Either you can
purchase a new Car/ Van/ Jeep or raise loan to purchase old vehicles that are not
older than 3 years. Finance will be provided for purchase of vehicle of indigenous/
foreign makes.
Individuals as well as Business Concerns (Corporate or non-corporate).
For Individuals: 25 times of the monthly net salary OR Rs.15 lac, whichever is
lower. Income of spouse can be taken into account for determining loan amount. In
such cases, the spouse shall stand as a guarantor.
For Business Conerns: No ceiling on loan amount.
The vehicle purchased with the amount of loan is to be hypothecated to the Bank. It
will be registered in the name of the borrower jointly with the Bank.
For new Car/ Van/ Jeep: The loan amount together with interest is to be repaid
maximum in 84 Equated Monthly Instalments (EMIs)
For old Car/ Van/ Jeep: The loan amount together with interest is to be repaid
maximum in 60 Equated Monthly Instalments (EMIs)
1% of the loan amount unt, with a maximum of Rs.4,000/Rs.300/- upto Rs.2 Lac
Rs.500/- over Rs.2 Lac
The intending borrower will be required to settle the transaction for purchase of
vehicle needed by him/her with the seller and will be required to deposit the
difference of the cost of the vehicle to amount of loan, and thereafter, the advance
will be allowed to him/her from the bank by paying the entire price of the vehicle to
BSF,
CRPF,
CISF,
ITBP
ii) Confirmed/ permanent employees of Central/ State Govt/ PSUs and all reputed
companies/ Institutions, who are drawing their salary through accounts maintained
with
Employees
our
of
above
branches.
categories
under
check-off
facility
iii) Professionally qualified Doctors viz. MBBS, BDS & above having annual
income
of
Rs.4.00
lac
&
above.
Rs.15000
per
month
for
eligible
customers
at
Metro
Centres;
- Rs.10000 per month for eligible customers at Semi-Urban and Rural Centres.
However, for Teachers, Army Jawans, other permanent employees of Military
Station Headquarters and Para Military Personnel whose salary is being credited and
disbursed through our branches the minimum Net Monthly Income criteria shall be
Rs.7500/- at all Centres viz. Metro, Urban, Semi-Urban and Rural.
Term Loan/ Overdraft Minimum amount of loan will be Rs.50,000/- and maximum
amount of loan Rs.4,00,000/- or 20 times monthly net salary, whichever is lower,
depending upon the repaying capacity.
Term
Loan:
for
appropriation
in
the
loan
account).
Where the employer agrees to check off facility, at least one PDC to be obtained.
In case of Army Officers :
S.Urban/Rural Area
1. Medical practitioners
Rs 5.00 lac
Rs 10.0 lac
2. Other professionals
Rs 5.00 lac
Rs
5.00 lac
verifying the end use in terms of the plan as also at the spot.
should
approach
the
branch
nearest
to
the
place
of
domicile.
Interest is charged monthly on simple basis during the repayment holiday/moratorium period
& concession of 1% in rate of interest is allowed provided the same is serviced regularly
during study period. Punjab National Bank has tied up with Kotak Mahindra Insurance to
provide life insurance cover for Student borrowers.
Need based finance, subject to repaying capacity of the parents / students with margin and the
following ceilings :For studies in India: Maximum Rs.10.00 lacs.
For studies abroad: Maximum Rs.20.00 lacs.
Nil.
Above Rs.4.00 lacs:
Studies in India
Studies Abroad
Reimbursement of related expenses such as admission fee, monthly fee,
Boarding and lodging expenses in recognized Boarding Houses etc. already
incurred by way of loan taken from own sources (to meet the contingency)
by the applicant, if claimed within 3 (three) months of such payment and
before consideration of the loan by the Bank.
5%
15%
Scheme seeks to provide finance against mortgage of immovable property situated in Metro/
Urban/ Semi Urban centres. The scheme is designed to offer instant solutions relating to
business needs or for personal needs such as, children's higher education, travel, daughter's
marriage, medical emergencies, etc. Loan is, however, not available for speculative purpose.
Eligibility
For Individuals
Minimum net monthly salary/ net annual income of Rs.10,000/ Rs.1,20,000/- for
salaried and for other income tax assesses respectively
Net annual income should be double that of total EMIs for the year
Net income/ profit should be 1.5 times that of total EMIs for the year
or
Education. At the same time, such individuals/ including joint owners should have adequate
capacity to regularly service such loans.
4. PURPOSE
Finance will be allowed for:
Meeting
need
based
requirement
of
purchase
construction
/addition
7. RATE OF INTEREST
Housing -
TENOR
For
loans
repayable
in/upto
i) Upto 5 years
7.75
8.25
11. SECURITY:
Housing
Equitable/ Registered Mortgage of the House/Flat/ Plot Financed.
Obtention of pari passu or second charge over the property mortgaged in favour of other
Lender in situations where senior authorities consider requests and allow loan only to
confirmed employees of Central / State Govts. / Public Sector Undertakings, who have raised
funds for construction / acquisition of accommodation from other sources and need
supplementary finance, for an amount of loan of maximum upto Rs. 20 lacs, which, however,
should be for a minimum of Rs. 2lacs as prescribed above.
Car
Hypothecation of the Vehicle financed.
Equitable mortgage should be for the total amount of loan.
12. GUARANTEE
Suitable guarantee acceptable to the Bank may be obtained which may also include guarantee
from family members/other relatives.
13. UPFRONT & DOCUMENTATION CHARGES
Flat Upfront charges of Rs.2,500/- & no documentation charge.
14. PREPAYMENT PENALTY
In case any of the loan facilities allowed are adjusted within a period of three years,
borrower(s) will be required to pay a prepayment Penalty @ 2% on the amount which had not
become due for payment.
15. GENERAL
The concessional loan facility is available provided the combined availment is Rs. 5 lacs or
more.
Equitable Mortgage of the Immovable Property against which Housing loan has been allowed
will secure the combined loan for two or more purposes.
Equitable Mortgage shall not to be released till final adjustment of all the loans.
Indian Retail Banking continues to redefine the credit growth in the country. It grew by a
whopping 44.4% in 2005-06 to touch Rs3,538 billion. This leap was despite the increase in
risk weight by RBI for housing and real estate loans during August, 2005. Housing, which
constitutes more than 52% of all retail loans, grew at a robust rate of 44.35% during 2005-06.
In order to help banks in India to understand the market and competition and plan future
strategies, we have just come out with an Industry Insight on Indian Retail banking 2006
edition. This report analyses the retail banking market and its segments in India and presents
the key trends, along with issues and challenges. The report also paints a future outlook for
the market. Besides it profiles 21 major players in the retail banking space and their
strategies.
This report will be of immense use to all banks in India to review and formulate their
strategies in the retail space. It primarily covers analysis of the present status, current trends,
major
issues
Major
&
points
challenges
in
the
growth
discussed
of
in
the
retail
this
banking
sector.
report
are:
banking
industry?
are
the
regulatory
factors
involved
in
Indian
- How interest rate risks, money laundering, and outsourcing are affecting the performance
of banking sector?
- What would be the impact of Basel-II norms in Indian banking industry?
- How the banking industry would combat the competition from upcoming sectors like
mutual
funds?
- What are the various issues and challenges before this industry?
With a jump in the Indian economy from a manufacturing sector, that never really took off, to
a nascent service sector, Banking as a whole is undergoing a change. A larger option for the
consumer is getting translated into a larger demand for financial products and customisation
of services is fast becoming the norm than a competitive advantage.
With the Retail banking sector expected to grow at a rate of 30% [Chanda Kochhar, ED,
ICICI Bank] players are focussing more and more on the Retail and are waking up to the
potential of this sector of banking. At the same time, the banking sector as a whole is seeing
structural changes in regulatory frameworks and securitisation and stringent NPA norms
expected to be in place by 2004 means the faster one adapts to these changing dynamics, the
faster is one expected to gain the advantage. In this article, we try to study the reasons behind
the euphemism regarding the Retail-focus of the Indian banks and try to assess how much of
it is worth the attention that it is attracting.
Potential for Retail in India: Is sky the limit?
The Indian players are bullish on the Retail business and this is not totally unfounded. There
are two main reasons behind this. Firstly, it is now undeniable that the face of the Indian
consumer is changing. This is reflected in a change in the urban household income pattern.
The direct fallout of such a change will be the consumption patterns and hence the banking
habits of Indians, which will now be skewed towards Retail products. At the same time, India
compares pretty poorly with the other economies of the world that are now becoming
comparable in terms of spending patterns with the opening up of our economy. For instance,
while the total outstanding Retail loans in Taiwan is around 41% of GDP, the figure in India
stands at less than 5%. The comparison with the West is even more staggering. Another
comparison that is natural when comparing Retail sectors is the use of credit cards. Here also,
the potential lies in the fact that of all the consumer expenditure in India in 2001, less than
1% was through plastic, the corresponding US figure standing at 18%.
But how competitive are the players?
The fact that the statistics reveal a huge potential also brings with it a threat that is true for
any sector of a country that is opening up. Just how competitive are our banks? Is the threat
of getting drubbed by foreign competition real? To analyze this, one needs to get into the
shoes of the foreign banks. In other words, how do they see us? Are we good takeover
targets? Going by international standards, a large portion of the Indian population is simply
not bankable
taking profitability into consideration. On the other hand, the financial services market is
highly over-leveraged in India. Competition is fierce, particularly from local private banks
such as HDFC and ICICI, in the business of home, car and consumer loans. There, precisely
lie the pitfalls of such explosive growth. All banks are targeting the fluffiest segment i.e. the
upwardly mobile urban salaried class. Although the players are spreading their operations
into segments like selfemployed and the semi-urban rich, it is an open secret that the big city
Indian yuppies form the most profitable segment. Over-dependence on this segment is bound
to bring in inflexibility in the business.
7.2% is falling. Those that remain might be thought to be likely buyers of Indian banks. Yet
Citibank, HSBC and Standard Charteredall in India for more than a century, and with
relatively large retail networksseem to have no pressing need to acquire a local bank.
Established foreign banks have preferred to take over customers or businesses from other
foreign banks that want to leave. Thus HSBC, in recent years, has acquired customers from
France's BNP, Germany's Deutsche Bank and Japan's Bank of Tokyo-Mitsubishi. ABN Amro
took over Bank of America's retail business.
So all for the keeping then?
This will perhaps be the most wrongful inference that can be drawn from the above. We just
cannot afford to look inwards and repeat the mistakes that were the side effects of the
Nationalization of the Banking System. A growing market can never be an alibi for lack of
innovation. Indian banks have shown little or no interest in innovative tailor-made
products.They have often tried to copy process designs that have been tested, albeit
successfully, in the West. Each economic culture has its own traits and one who successfully
adapts those to the business is the eventual winner. A case in point is the successful
implementation of micro-credit networks in Bangladesh. Positioning a bank as a tech-savvy
financial vendor in a country where Internet penetration is an abysmal 1.65% can only add to
the over-leveraging as pointed out earlier. The focus of the sector should remain in
macroeconomic wealth creation and not increasing the per capita indebtedness that will do
little but add to the NPA burden. Retail Banking in India has to be developed in the Indian
way, notwithstanding the long queues in front of the teller counter in the SBI Joka branch!
Chapter-3
Research
Methodology
RESEARCH METHODOLOGY
Research Methodology refers to the method the researchers use in performing research
operations. In other words, all those methods, which are used by the researcher during the
course of studying his research problem, are termed as Research Methods.
RESEARCH DESIGN
A research project conducted scientifically has a specific frame work of research from
problem identification to presentation of research report. This framework of conducting
research is known as Research Design.
A research can be conducted without a research plan but it may not solve the problem. A
research cannot achieve its objectives without proper research design, without design, it
increase its cost and energy.
DESCRIPTIVE RESEARCH DESIGN
Descriptive research includes surveys and facts finding enquirys of different finds. The
major purpose of descriptive research is description of the state of affairs as it exists at
present. The main characteristics of this method are that the researcher has no control over
the variable. He can only report what has happened or what is happening. Most are post facts
research projects are used for descriptive studies in which the researcher seeks to measure
such items as for example frequency of shopping, preference of people or similar data. Ex
post facts studies also include attempt by researchers to discover causes even way when they
cannot control the variables. The method of research utilized in descriptive research is survey
method of all kinds, including comparative and correctional methods.
The study is about customer satisfaction regarding services in PNB. It is being made because
Customer satisfaction is the key to the profitability of the banking. It implies the retention of
customers for the long term, which is cheaper than altercating new customers. In current
scenario bank becoming larger the closure of branches and the advent of internet banking, the
question arises whether the customers are satisfied or not.
DATA COLLECTION
PRIMARY DATA with the help of self structured, questionnaire was collected to the address
the research objectives and keeping in tune with the research design.
SECONDARY DATA consisted from Journals, Magazines, and Books & Websites.
SAMPLING TECHNIQUE
Sampling is necessary because it is almost impossible to examine the entire parent population
or universe. Various factors such as time available, cost, purpose of study etc. make it
necessary for the researchers to choose a sample. It should neither be too small nor too big.
SAMPLE SIZE
40 Customers.
MODE OF DATA COLLECTION
Questionnaire
Objectives of study
Made reminders for customers so that they can know rather they have paid their rent
for the locker.
Entries of cash vouchers and evaluation of entries of the Fixed deposit from one ledger
to another.
DESCRIPTION OF EXPERIENCES
Due to the lack of the employees ledger were not in good condition.
Recording of the data was incomplete and due to which they were not able to clarify
the dues.
Now they have to pass simple entries and all records is maintained easily without any
confusion.
There job is much simpler than before now they can make changes, add, modify at
the same time in a easy manner that is an achievement for bank
I learnt many things in the bank but the most interesting thing I like there is the
Environment of the bank the employees help each other rather they the job of other
or not but they help each other.
Conflicts arise between them because of the lack of the customers they add wrong
information in their cheques or vouchers that cannot be passed.
I learnt many things I have good and bad experiences both over their before I I was
not aware of anything in the bank now I know many things.
I can say that while working over their no employee leaves its work pending for net
day because if they let it pending than they can not end their day and by hook or
crook they have to finish it.
They have to interact with differ rent types of people so its very tough.
Chapter-4
DATA
ANALYSIS
AND
INTERPRETATION
OCCUPATION
GOOD
SATISFA-
VERY
UNATIS
CTORY
GOOD
FACTORY
TOTAL
%AGE
SERVICE
13
32.5
STUDENT
20.0
RETIRED
10.0
BUSINESS
11
27.5
HOUSE HOLD
10.0
TOTAL
18
40
100
TABLE
DO YOU FIND OUT STAFF CO-OPERATVE/COURTEOUS?
OCCUPATION
YES
NO
TOTAL
%AGE
SERVICE
13
32.5
STUDENT
20.0
RETIRED
10.0
BUSINESS
11
27.5
HOUSE HOLD
10.0
TOTAL
20
20
40
100
TABLE
WHETHER FACILITY OF LOCKER IS UPTO THE MARK?
OCCUPATION
YES
NO
TOTAL
%AGE
SERVICE
10
13
32.5
STUDENT
20.0
RETIRED
10.0
BUSINESS
11
27.5
HOUSE HOLD
10.0
TOTAL
31
40
100
TABLE
IS MANAGER & STAFF RECEPTIVE TO YOUR PROBLEMS?
OCCUPATION
YES
NO
TOTAL
%AGE
SERVICE
13
32.5
STUDENT
20.0
RETIRED
10.0
BUSINESS
11
27.5
HOUSE HOLD
10.0
TOTAL
24
16
40
100
TABLE
HOW MUCH TIME IS TAKEN IN OPENING OF AN ACCOUNT?
OCCUPATION
15
30
1 2
HOURS/ TOTAL
%AGE
MINUTES
MINUTES
HOUR
MORE
SERVICE
13
32.5
STUDENT
20.0
RETIRED
10.0
BUSINESS
11
27.5
HOUSE HOLD
10.0
TOTAL
18
15
40
100
TABLE
DO YOU WANY TO AVAIL OUR CREDIT FACILITIES?
OCCUPATION
PERSONAL
CONSUMER OTHERS
HOUSING CAR
TOTA
LOAN
LOAN
LOAN
SERVICE
13
32.5
STUDENT
20.0
RETIRED
10.0
BUSINESS
11
27.5
HOUSEHOLD
10.0
TOTAL
10
10
40
100
LOAN
%AGE
Chapter-5
FINDINGS AND
CONCLUSIONS
Conclusions
Bank requires good sitting arrangements for the old generation so that they can get
their work done easily and in a manner and get fully satisfied.
Promotions to the employees should be given and their salary must be increased.
Maximum tax benefit is availed from home loan and minimum from car loan.
Maximum number of borrowers were get influenced by dealer/agent and minimum by
relative. So bank requires introducing new advertisement for loan schemes.
Bank requires to make better arrangements in sitting and standing in the branch.
Bank has to maintain its working environment as result of which customers not even
hesitate to enter the bank.
References
References
Philip Kotler, 2004-2005 Marketing Management, PHI, NewDelhi.
C.R. Kothari, 2001Research Methodology, Wishwa prakashan, New
Delhi.
Indian Journal of Marketing.
Website of PNB.