A PROJECT REPORT

ON
CUSTOMER SATISFACTION
Conducted at

PUNJAB NATIONAL BANK

SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of
Submitted to : Submitted
by:
Miss. SAPNA ARORA HEENA
AGGARWAL
Assistant Professor Roll No. 9011
Batch : 2009-
2011
 J.C.D Institute of Business Management, Sirsa Affiliated to Kurukshetra
University, Kurukshetra

Institute of Business Management

Jan Nayak Ch. Devi Lal Vidyapeeth
Post Box 81, Barnala Road, Sirsa, Haryana - 125055
Phone: 01666-238101/02/03/04, Fax: 01666-238100,

GUIDE CERTIFICATE

Certified that Mr. HEENA AGGARWAL, Class Roll No. 9011, University Roll
No…………… student of M.B.A. in the I.B.M., J.C.D. Vidyapeeth, Sirsa has
successfully completed the Summer Training Report entitled "CUSTOMER
SATISFACTION" under my guidance towards the partial fulfillment of his
M.B.A. degree.

Miss. Sapna Arora Dr. Shashi Kapur

(Project Guide) (Director)
J.C.D., I.B.M. J.C.D. I.B.M.
 ACKNOWLEDGEMENT

It was a great opportunity for me to work with PUNJAB NATIONAL BANK.,

pioneers in the field of Finance Industry. I am extremely grateful to all those who
have shared their expertise and knowledge with me and without whom the
completion of this project would have been virtually impossible.

Firstly, I would like to thank our Company Guide Mr. Deepanker, senior Training
Manager who has been a constant source of inspiration for me during the
completion of this project. He gave me invaluable inputs during my endeavor to
complete this project.

I am also extremely grateful to Mr.Deepanker, Senior Training Manager, to have

given me this opportunity to work with him and gain valuable insights.

I am indebted to all staff of Angel Broking Ltd for their valuable support and
cooperation during the entire tenure of this project. Not to forget, all those who
have kept my spirits surging and helped delivering my best.

I thank my faculty guide Ms. Sapna Arora who helped me out at every critical
situation that I faced in my project and gave me his valuable advice to solve
problems.

I want to give my special thanks to all members of IBM, for providing me

opportunity to work on this project with this great organization.

At last I would like to thank all the respondents met in the preparation, who gave
their valuable time to provide us required information and their honest support to
complete our project in time.

(Heena Aggarwal)
 DECLARATION

I hereby declare that the project “CUSTOMER SATISFACTIONDemat

Account of Angel Broking” is original and bonafied work done by me.

The project is being submitted in partial fulfillment requirements for the award degree of
Master of Business Administration, Kurukshetra University, kurukshetra.

The contents of this project are based on the field work and analysis done by me during
my tenure at PUNJAB NATIONAL BANK, FARIDABAD.

(Heena Aggarwal)
 PREFACE

Education becomes more meaningful when its theoretical aspects are combined with practical
experience. This provides opportunities to the students to improve their understandings of the
studies.

As a part of this course, every aspirant has to undergo six weeks “internship” in an organization
of repute. The purpose of this training is to expose the students to the real business situation and
to provide insight into the various functions carried out within the organization.

In order to use the theoretical knowledge I get the opportunities of “Internship” in NHPC LTD.

As complementary to training, I have prepared and submitted the project report. It is an attempt
to present an account of practical knowledge and observations gathered during the training.
 CONTENTS

1. COMPANY PROFILE
2. INTODUCTION OF PROJECT
3. LITERATURE REVIEW
4. RESEARCH DESIGN
5. ANALYSIS AND INTERPRETATION
6. OBSERVATION AND FINDINGS
7. BIBLOGRAPHY
CHAPTER 1
INTRODUCTION TO BANKING IN INDIA
The banking section will navigate through all the aspects of the Banking System in India.
It will discuss upon the matters with the birth of the banking concept in the country to
new players adding their names in the industry in coming few years.
The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association
(IBA) and top 20 banks like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well
defined under three separate heads with one page dedicated to each bank.
However, in the introduction part of the entire banking cosmos, the past has been well
explained under three different heads namely:
• History of Banking in India
• Nationalization of Banks in India
• Scheduled Commercial Banks in India

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
to the remote corners of the country. This is one of the main reasons of India's growth
process.
The first bank in India, though conservative, was established in 1786. From 1786 till
today, the journey of Indian Banking System can be segregated into three distinct phases.
They are as mentioned below:
• Early phase from 1786 to 1969 of Indian Banks
 • Nationalization of Indian Banks and up to 1991 prior to Indian banking sector
Reforms.
• New phase of Indian Banking System with the advent of Indian Financial
& Banking Sector Reforms after 1991.

SCHEDULED COMMERCIAL BANKS IN INDIA

The commercial banking structure in India consists of:

• Scheduled Commercial Banks in India
• Unscheduled Banks in India
Scheduled Banks in India constitute those banks which have been included in the Second
Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only those
banks in this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the
Act.
As on 30th June, 1999, there were 300 scheduled banks in India having a total network of
64,918 branches. The scheduled commercial banks in India comprise of State bank of
India and its associates (8), nationalized banks (19), foreign banks (45), private sector
banks (32), co-operative banks and regional rural banks.
"Scheduled banks in India" means the State Bank of India constituted under the State
Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of
India (Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted
under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings)
Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and
Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank
included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), but
does not include a co-operative bank".
"Non-scheduled bank in India" means a banking company as defined in clause (c) of
section 5 of the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled
bank".
The following are the Scheduled Banks in India (Public Sector):

• State Bank of India

• State Bank of Bikaner and Jaipur
• State Bank of Hyderabad
• State Bank of Indore
• State Bank of Mysore
• State Bank of Saurashtra
• State Bank of Travancore
• Andhra Bank
• Allahabad Bank
• Bank of Baroda
• Bank of India
• Bank of Maharashtra
• Canara Bank
• Central Bank of India
• Corporation Bank
• Dena Bank

The following are the Scheduled Banks in India (Private Sector):

• ING Vysya Bank Ltd

• Axis Bank Ltd
• Indusind Bank Ltd
• ICICI Bank Ltd
• South Indian Bank
• HDFC Bank Ltd
• Centurion Bank Ltd
• Bank of Punjab Ltd
• IDBI Bank Ltd

The following are the Scheduled Foreign Banks in India:

• American Express Bank Ltd.

• ANZ Gridlays Bank Plc.
• Bank of America NT & SA
• Bank of Tokyo Ltd.
• Banquc Nationale de Paris
• Barclays Bank Plc
• Citi Bank N.C.
 • Deutsche Bank A.G.
• Hongkong and Shanghai Banking Corporation
• Standard Chartered Bank.

BANKING SERVICES IN INDIA

With years, banks are also adding services to their customers. The Indian banking
industry is passing through a phase of customers market. The customers have more
choices in choosing their banks. A competition has been established within the banks
operating in India.
With stiff competition and advancement of technology, the services provided by banks
have become more easy and convenient. The past days are witness to an hour wait before
withdrawing cash from accounts or a cheque from north of the country being cleared in
one month in the south.
This section of banking deals with the latest discovery in the banking instruments along
with the polished version of their old systems.

INTRODUCTION OF PNB
Punjab National Bank of India, the first Indian bank started only with Indian capital,
was nationalized in July 1969 and currently the bank has become a front-line banking
institution in India with 4525 Offices including 432 Extension Counters. The corporate
office of the bank is at New Delhi. Punjab National Bank of India has set up
representative offices at Almaty (Kazakhistan), Shanghai (China) and in London and a
full fledged Branch in Kabul (Afghanistan).
Punjab National Bank with 4497 offices and the largest nationalized bank is serving its
3.5 crore customers with the following wide variety of banking services:
• Corporate banking
• Personal banking
• Industrial finance
• Agricultural finance
• Financing of trade
 • International banking
Punjab National Bank has been ranked 38th amongst top 500 companies by The
Economic Times. PNB has earned 9th position among top 50 trusted brands in India.
Punjab National Bank India maintains relationship with more than 200 leading
international banks world wide. PNB India has Rupee Drawing Arrangements with 15
exchange companies in UAE and 1 in Singapore.

HISTORY 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.
• 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.
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.

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 bank’s 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.

• 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.

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.

VALUES AND ETHICS

• Bonding and Integrity
• Ethical conduct
• Periodic disclosure
• Confidentiality and fair dealing
• Compliance with rules and regulation
PRODUCTS AND SERVICES
• Savings Fund Account
1. Total Freedom Salary Account
2. PNB Prudent Sweep,
3. PNB Vidyarthi SF Account,
4. PNB Mitra SF
• Account Current Account
1. PNB Vaibhav,
2. PNB Gaurav,
3. PNB Smart Roamer
• Fixed Deposit Schemes
1. Spectrum Fixed Deposit Scheme,
2. Anupam Account,
3. Mahabachat Schemes,
4. Multi Benefit Deposit
• Scheme Credit Schemes
1. Flexible Housing Loan,
2. Car Finance,
3. Personal Loan,
4. Credit Cards
• Social Banking
1. Mahila Udyam Nidhi Scheme,
2. Krishi Card,
3. PNB Farmers Welfare Trust
• Corporate Banking
1. Gold Card scheme for exporters,
2. EXIM finance
• Business Sector
1. PNB Karigar credit card,
2. PNB Kushal Udhami,
3. PNB Pragati Udhami,
4. PNB Vikas Udhami
Apart from these, and the PNB also offers locker facilities, senior citizens schemes,
PPF schemes and various E-services.
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.
• FICCI's Rural Development Award for Excellence in Rural Development – 2005
Let’s analyze SWOT in order to know as to where the company stands

SWOT ANALYSIS

STRENGTH

 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

 Home to home banking services

 Diversification towards other fields
 Globalization

THREATS
 Stiff competition from SBI and other private players.

CHAPTER 2
INTRODUCTION
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.
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.
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, 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. Supplier’s 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 customer’s priorities,
improved quality of service provided by competitors are just a few examples. The
customer is always right. Supplier’s job is to provide the customer what he/she wants,
when he/she wants it. Customer satisfaction is customer’s perception that a supplier has
met or exceeded their expectations.

WHAT CONSTITUTES SATISFACTION?

We cannot create customer satisfaction just by meeting customer’s 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 customer’s perceptions. The purpose of the
exercise is to identify priorities for improvements. We must develop a method or
combination of methods that helps to continually improve service.

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 information—gaining 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-à-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)
• Customer’s perception of supplier’s performance
• Your performance relative to customer’s priorities.
• Priorities for improvement
 Survey forms should be easy to fill out with minimum amount of time and efforts on
customer’s 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 customer’s organization—
the 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).
CHAPTER-3
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.

CONSUMER SATISFACTION PROCESS

The paramount goal of marketing is to understand the customer and to influence buying
behaviour.
The process can be depicted as follows:-
1. Need recognition- realization of the difference between the desired and the
current situation that serves as a trigger for entire process.
2. Search for information.
3. Pre purchase alternative evaluation.
4. Consumption(utilization of the procured option)
5. Post purchase alternative re-evaluation.
6. Divestment(disposal of the unconsumed product and it’s remnants)

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 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

1. Display business hours.

2. Render courteous services.
3. Attend to all customers present in the banking hall at the close of business hours.
4. Provide separate 'Enquiry' or 'May I help you' counter at large branches.
5. Offer nomination facility to all deposit accounts (i.e. account opened in individual
capacity) and all safe deposit locker hirers (i.e. individual hirers).
6. Display interest rates for various deposit schemes from time to time.
7. Notify change in interest rates on advances.
8. Provide details of various deposit schemes/services of the Bank.
9. Issue Demand Drafts, Pay Orders, etc.
10. Display Time-Norms for various banking transactions.
11. Pay interest for delayed credit of outstation cheques, as advised by Reserve Bank
of India (RBI) from time to time.
12. 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.
13. Provide complaint/suggestion box in the branch premises.
14. Display address of Regional/Zonal and Central Offices as well as Nodal Officer
dealing with customer grievances/complaints.
CHAPTER-4
Statement of prob.
This Study will help us to understand the consumer’s 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.

NEED FOR THE STUDY

 The deeper the company understands of consumer’s 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.
 This study will help companies to customize the service and product, according to
the consumer’s need.
 This study will also help the companies to understand the experience and
expectations of the existing customers.

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.

OBJECTIVE OF THE STUDY

 To have an insight into the attitudes and behaviors of customer.
 To find out the differences among perceived service and expected service.
 To produce an executive service report to upgrade service characteristics.
 To understand consumer’s preferences.
 To access the degree of satisfaction of the consumers

RESEARCH METHODOLOGY

Research simply means, “Search for

knowledge”.
According to Roman and More,
Research is “systematized effort to
gain new knowledge”.

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 decision-
making 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,
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.

SAMPLE METHOD
Convenience sampling method is used for the survey of this project. It is a non-
probability 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 newspaper’s invitation for readers to state their position on
some public issue.

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.

SAMPLING METHOD
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.

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 question’s response to reach into findings,
suggestions and finally to the conclusion about the topic.

DATA COLLECTED :
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 company’s brochures, manuals
and annual reports
• External Data, on the other hand, was generated from magazines,
research books, intranet and internet (websites).

TYPE OF RESEARCH :
The present study is based on the type of research that is ‗analytical research‘ which
includes main purpose to analyze the different process, methodologies and procedures
which have been developed by RBI and PNB. Here researcher has the opportunity to
develop some new models and can do a lots of practical work on different types of
models which has been developed by RBI.

INSTRUMENTS USED :
Chart and percentage method were used to prepare the project report.

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.

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.
CHAPTER-5
 TABLE 5.1
SHARE OF DIFFERENT TYPES OF ACCOUNTS

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 5.2
SATISFACTION OF RESPONDENTS WITH SERVICES
OFFERED BY PNB BRANCH

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
RESPONDENT’S LIFE INSURANCE COMPANY

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
consumersare 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
agood service to the customers due to increased competition in the market. This may be
the reason for more satisfaction

TABLE 5.4
TABLE SHOWING MOTIVE BEHIND THE SELECTING PNB

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 5.5
CONSUMERS WILLINGNESS TO RECOMMEND THEIR LIFE
INSURANCE
COMPANY TO OTHERS
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 5.6
CONSUMERS WILLINGNESS TO SHIFT THEIR A/Cs TO OTHER
BANKS

Analysis: From this table it can be noted that the majority of consumers (92%) doesn’t
like to shift their A/Cs to other banks.
Interpretation: The reason can be increasing customer satisfaction and quality services
offered by the bank.

CHAPTER 6
Findings of Research
• Due to the intense competition in the financial market, PNB should adopt better
strategies to attract more customers.
• Pnb is not using any promotional strategy for product awareness which is highly
required.
• There is attention lacking where Return on investment company reputation and
premium outflow are most preferred attributes that are expected by the respondents.
• PNB does not have any consumer complaint or feerdback cell which is highly
required for customer retaining and satisfaction.
• Majority of PNB customers are visible for savings where as PNB requires current
savings or unit link savings to invested.
• PNB needs an efficient and experienced marketing force which can improve it’s
market share.
CHAPTER-7
SUGGESTIONS & RECOMMENDATIONS
With regard to banking products and services, consumers respond at different rates,
depending on the consumer’s characteristics. Hence I 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.
 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
 BIBLOGRAPHY

 Financial Management theory and practice by Prassanna Chandra

 Www. Google.com,

 www. Wikepedia.com

 www. Pnbindia.com

 www.Pnb.com

 www.Rbi.gov.in