Punjab National Bank.docx

A PROJECT REPORT ON

“STUDY OF PUNJAB NATIONAL BANK” SUBMITTED BY SHARMA KAVITA AMRESH T.Y.B.Com (B&I) [Semester V]

PADMASHREE ANNASAHEB JADHAV BHARTIYA SAMAJ UNNATI MANDAL’S

B.N.N. COLLEGE DHAMANKAR NAKA, BHIWANDI, 421302 SUBMITTED TO

UNIVERSITY OF MUMBAI ACADEMIC YEAR 2016-2017

UNDER THE GUIDANCE OF MR. PANKAJ DESAI

A PROJECT REPORT ON

“STUDY OF PUNJAB NATIONAL BANK” SUBMITTED BY SHARMA KAVITA AMRESH T.Y.B.Com (B&I) [Semester V]

PADMASHREE ANNASAHEB JADHAV BHARTIYA SAMAJ UNNATI MANDAL’S

B.N.N. COLLEGE DHAMANKAR NAKA, BHIWANDI, 421302 SUBMITTED TO

UNIVERSITY OF MUMBAI ACADEMIC YEAR 2016-2017

UNDER THE GUIDANCE OF MR.PANKAJ DESAI

Padmashree Annasaheb Jadhav Bhartiya Samaj Unnati Mandal’s B.N.N.College, Bhiwandi. (Arts, Science & Commerce) Dist.Thane – 421 305 SELF FUNDED COURSES Bachelor of Banking and Insurance (B.B.I.) Est. June 1966

CERTIFICATE This is to certify that, MISS. SHARMA KAVITA AMRESH. (Roll No.50) of T.Y.B Com (B&I), B.N.N College, Semester V (Academic Year 2016 - 2017) has successfully completed the project entitled “STUDY OF PUNJAB NATIONAL BANK” and submitted the Project Report in partial fulfillment of the requirement for the award of the Degree of B.Com (Banking & Insurance sem.-V) of University of Mumbai.

Mr.pankaj desai (Project Guide)

Dr. Suvarna T. Rawal (Co-ordinator)

Dr. Ashok D.wagh (Principal)

Examiner: - 1._______________________

College Seal

DECLARATION I, Miss SHARMA KAVITA AMRESH (Roll No.50) of TY.B.Com.(Banking and Insurance) Semester V, studying in B.N.N. College, Bhiwandi, hereby declare that the information contained in the project titled “STUDY OF PUNJAB NATIONAL BANK” is true and correct to the best of my knowledge and belief.

________________________ PATIL MAYURI VISHWAS T.Y.B Com (B&I)

PLACE: BHIWANDI DATE:

ACKNOWLEDGEMENT I am deeply indebted to my project guide, my family and friends who have supported me all through my project by encouraging and inspiring me. They have also contributed to the quality of the material presented in the project. I would like to acknowledge all those whom I owe a debt of gratitude. It is my foremost duty to express my sincere gratitude towards my mentor, guru and guide, Mr. pankaj deasi, Assistant Professor, B.N.N. College, Bhiwandi, Dist.–Thane, Maharashtra for her constant encouragement, support and generous attitude which helped me with new insights not only in understanding different aspects of my project but also the intricacies of life. It was truly an enriching experience working under her guidance. I must thank the Management of B.N.N. College, Dist.–Thane, Maharashtra and our Principal Dr. Ashok D. Wagh for constantly encouraging me. I also thank our coordinator Dr. Suvarna T. Rawal, and all Vice-Principal of B.N.N. College for their constant support and cooperation.

I express my deep sense of gratitude to all my teachers, friends and all well wishers who were always concerned about my project and contributed directly or indirectly for the successful completion of my project work.

SHARMA KAVITA AMRESH

SUMMARY Punjab National Bank was recognized by Dun & Bradstreet (2009) as the “ Top Public Sector Bank” under including the category of “Priority Sector lending including Financial Inclusion.” Bank has also been conferred with the award by the institute for Development and Research in Banking Technology (IDRBT, 2008) for use of technology financial inclusion.

Bank constantly innovates, reorients strategies and realigns business processes with advanced technology to serve the customers better and earn strong brand salience, loyalty and recall. Total income of Bank increased by 36.8% to reach a level of Rs 22246 crore. Operating profit of Bank rose by 43.4% to Rs 5,744 crore. Total business of PNB stood at Rs 3,64,463 crore (y-o-y increase of 27.5%). Total income of Bank increased by 36.8% to reach a level of Rs 22,246 crore. The Board Of Directors has recommended a Dividend of 200 % for the year 2008-09. Among Nationalized Bank, PNB has the largest network of 4668 offices, including 238 extension counters. All branches offer the Centralised Banking Solution, along with a variety of financial products catering to different market segments. 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.

OBJECTIVES

1. To study good and fair banking practices by setting minimum standards in dealing with customer of Punjab National Bank.

2. To study a fair & cordial relationship between customer and bank.

3. To study Vision & Mission of Punjab National Bank.

4. To study different types of Products & Services offered by Punjab National Bank.

5. To study the growth of Punjab National Bank.

INDEX CHAPTERS

CONTENTS

PAGE NO.

1

Introduction

1-3

2

Profile

4-6

3

Review of literature

4

Data Analysis and interpretation

5

Observations and Conclusions

6

Suggestions

7

Bibliography

INTRODUCTION

MEANING AND DEFINITION OF BANK:

MEANING OF BANK: A bank is a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital markets. A bank connects customers with capital deficits to customers with capital surpluses.

Banking is generally a highly regulated industry, and government restrictions on financial activities by banks have varied over time and location. The current set of global bank capital standards are called Basel II. In some countries such as Germany, banks have historically owned major stakes in industrial corporations while in other countries such as the United States banks are prohibited from owning non-financial companies. In Japan, banks are usually the nexus of a cross-share holding entity known as the keiretsu. In Iceland banks had very light regulation prior to the 2008 collapse.

The oldest bank still in existence is Monte dei Paschi di Siena, headquartered in Siena, Italy, which has been operating continuously since 1472.

DEFINITION OF BANK: Banking can be defined as An institution which accepts deposits, makes business loans, and offers related services. Commercial banks also allow for a variety of deposit accounts, such as checking, savings, and time deposit. These institutions are run to make a profit and owned by a group of individuals, yet some may be members of the Federal Reserve System. While commercial banks offer services to individuals, they are primarily concerned with receiving deposits and lending

PUNJAB NATIONAL BANK Punjab National Bank (PNB) (BSE: 532461), is a state-owned financial services company located in New Delhi, India. It was registered on May 19, 1894 under the Indian Companies Act with its office in Anarkali Bazaar Lahore. Today, the Bank is the second largest government-owned commercial bank in India with about 5000 branches across 764 cities. It serves over 37 million customers. The bank has been ranked 248th biggest bank in the world by the 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, Dubai and Kabul, and representative offices in Almaty, Dubai, Oslo, and Shanghai.

Punjab National Bank is one of the Big Four Banks of India, along with ICICI Bank, State Bank of India and Canara Bank .

HISTORY OF PUNJAB NATIONAL BANK Punjab National Bank was established in the year 1895 found by Punjab Kesari Shri Lala Lajpat Rai at Lahore (now in Pakistan) as a joint stock company. After the partition in 1947, the bank grew steadily with its presence at the important centers and metropolitan cities of the country and emerged as one of the big five Indian banks during pre-nationalized period.

The bank was nationalized in 1969 along with 13 other banks. Subsequently, in 1993 it took over the New Bank of India, another bank that was nationalized in 1980. In 2003 the Nedungadi Bank Ltd., a south based private sector bank also Merged the bank. Thus the bank, which previously had its main business area around the Indo-Gangetic belt and major metros, could ensure its remarkable presence in the entire country.

Presently, it is the second largest bank of the country rendering a wide variety of

banking

services

(corporate/personal/industrial

finance/agriculture

finance/financing of trade and commerce/international banking). It has a broad clientele base like Multi National Corporation, Indian Conglomerates, medium/small industrial units and NRI’s. As a bank with global standard, it was ranked 416th among the biggest bank in the world by the banker’s Almanac in 2002.The bank is member of the SWITY (society for Worldwide International Financial Telecommunication) and has strong correspondent relationship with the leading international banks. Continued financial sector reforms led to greater alignment of financial sector to the competition business environment.

Operational and supervisory practices in the sector have been progressively matching international standards. In the process Indian banking system is becoming increasingly mature in terms of transformation of business process and risk management. The head office of the Bank is at, Bhikaji Cama Place, New Delhi.

The bank also has subsidiaries like PNB Gilts Ltd., PNB Housing Finance Ltd.,PNB Capital Services Ltd., PNB Assets Management Co .Ltd.

MILESTONE 

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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 Oudh Commercial Bank, was established in 1881 in Faizabad, but failed in 1958.) PNB's founders included several leaders of the Swadeshi movement. 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.

VISION AND MISSION OF PUNJAB NATIONAL BANK 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 the weaker section; committed to excellence in serving the public and also 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 the field of financial and related services; build and maintain a team of motivated and committed workforce with high work ethos; use latest technology aimed at customer satisfaction and act as an effective catalyst for socio-economic development”

LOGO AND SLOGAN

Established in 1895 at Lahore, then undivided India, Punjab National Bank (PNB) has the distinction of being the first Indian bank to have been started solely with Indian capital. The bank was nationalized in July 1969 along with 13 other banks. From its modest beginning, the bank has grown in size and stature to become a front-line banking institution in India at present. It has more than 4000 branches and over 400 extension counters. Strong correspondent banking relationship, which it maintains with over 200 leading international banks all over the world, enhances its capabilities to handle transactions worldwide. More than 50 renowned international banks maintain their Rupee Accounts with PNB.

With its presence virtually in all the important centres of the country, PNB offers a wide variety of banking services which include corporate and personal banking, industrial finance, agricultural finance, financing of trade and international banking. The large presence and vast resource base have helped the bank to build strong links with trade and industry. At the same time, the bank has been conscious of its social responsibilities by financing agriculture and allied activities and small-scale industries. The bank is committed to maintaining the highest standards of service and will be covering more offices under this quality movement titled 'Alliance with Quality'

PRODUCTS AND SERVICES Punjab National Bank offers financial solutions and services in an array of sectors. All these services that are offered keep pace with the changing market trends in order to fulfill the needs and preferences of the customers. Some of the well known sectors on which the main functions of the bank are based are:



Personal Banking



Corporate Banking



Agriculture finance services



Industrial finance services



Trade financial services



International banking services

PNB also has commercial relationship with more than 200 prestigious international banks across the globe. It has the provisions of Rupee Drawing Arrangements with around 15 exchange companies in the UAE and 1 in Singapore.

In case of the personal banking segment, the bank offers customized solutions to take care of almost all financial needs of the customers. Some of the well known services that are offered in the bank are:

PUNJAB NATIONAL BANK FIXED DEPOSIT Punjab National Bank is a leading public-sector bank offering fixed deposit products to customers at varying tenors and competitive rates. Interest rates on fixed deposits, however, are prone to changes in line with market rates. This can make it difficult for potential customers to ascertain maturity amounts and plan investments. To alleviate this, the above table captures all changes made to the banks FD rates. This not only lets customers track holdings but also make real-time comparisons.

PNB Short-Term FD Rates The interest rate stands at 4.75% on a 30-day deposit. This is a reasonable return for those with near-term liquidity requirements. For schemes with tenors of 46 and 90 days, the rate

stands at 6.25% which is enhanced by 0.25% for a tenor of 120 days (at 6.5%) and by 0.75% for a tenor of 9 months at 7%. For deposit periods of 180 days, rates are same as 9 months i.e. 7%.

PNB Medium and Long -Term FD Rates Interest rates on PNB’s fixed deposits for holdings of 1 year and above (up to 5 years) are varying from 7.75% to 7.5%. Deposits held for 1 to 2 years gives highest interest rate 7.75% while deposits held for more than 2 to 5 years will see a drop in rates to 7.5%. For tenures above 5 years, the rate holds steady at 7.25%.

FEATURES OF PNB FIXED DEPOSITS  Auto-renewal: If the depositor opts for auto-renewal, his/her term deposits will be automatically renewed after maturity except for term deposits under the Recurring Deposit Scheme, Capital Gain Scheme, PNB Tax Saver Scheme, Bulk Term Deposits above 10 crore and Inter-Bank Deposits.  Inclusion of blind and illiterate persons: PNB allows blind and illiterate persons to open a fixed deposit account.  Inclusions of all sections of society: Right from High School girls to beneficiaries of road accident insurance claims, PNB FDs are designed to serve every category of depositors.

CARD TYPES 1. PNB GLOBAL PLATINUM CREDIT CARD

The PNB Global Platinum Credit Card As a Platinum card holder apart from all the facilities which are available to our other card holders, you are entitled to other privileges:

Concierge Services • 24x7 Global Concierge Desk. Call 1800-2100-131 for assistance in making dining referrals and reservation assistance. • Travel- airline and hotel bookings; • Pre-trip- passport and visa assistance; • Flower & gift booking and delivery assistance. • A host of lifestyle services viz. show & event bookings and • Emergency services viz. medical support, emergency road side assistance and patient travel arrangements etc.

Additional Incentives Additional incentives in shape of various mercantile offers.

Rewards Points: Two points on every retail transaction of Rs.150/- made on Platinum card as against 2 points for retail purchase of Rs 200 on other cards.

Year End Summary Statement of Account In order to provide a superior level of convenience, Bank to provide year-end account summary statements to their Visa Platinum cardholders.

2. PNB GLOBAL GOLD CARD

The PNB Global Gold Card All-purpose credit card The PNB Credit Card can be used for all your requirements, be it shopping, eating out, holidaying, and fuelling up your vehicle, railway ticket reservations - just about any financial requirement, planned or on desire.

Earn while you spend With us, money spent is money earned. For every Rs. 100 you spend, you earn 1 reward points. You can redeem these accumulated points for exciting offers from our exclusive rewards program.

Add on cards Get up to 2 add-on cards for your spouse, parents, son and/or daughter (over 18 years) and allow them to enjoy the many benefits of the PNB Global Credit Card.

Lost Card Liability In case your credit card gets lost, report it immediately to our 24-hour toll free call centre. After you do this, you carry limited liability on any fraudulent transactions on your card.

Widely accepted at Merchant establishments & ATMs worldwide Accepted at over 3, 80,000 merchant establishments & over 30,000 VISA ATMs across India and at over 29 million merchant establishments and over 1 million VISA ATMs around the world.

Utility Bill Payment facility You can also pay your utility bill payments i.e. electricity bills, telephone / mobile bills, etc. through our credit card by logging on to www.visabillpay.in/pnb.

3 .THE PNB GLOBAL CLASSIC CREDIT CARD

The PNB Global Classic Credit Card All-purpose credit card The PNB Credit Card can be used for all your requirements, be it shopping, eating out, holidaying, and fuelling up your vehicle, railway ticket reservations - just about any financial requirement, planned or on desire.

Earn while you spend With us, money spent is money earned. For every Rs. 100 you spend, you earn 1 reward points. You can redeem these accumulated points for exciting offers from our exclusive rewards program.

Add on cards Get up to 2 add-on cards for your spouse, parents, son and/or daughter (over 18 years) and allow them to enjoy the many benefits of the PNB Global Credit Card.

Lost Card Liability In case your credit card gets lost, report it immediately to our 24-hour toll free call centre. After you do this, you carry limited liability on any fraudulent transactions on your card.

Widely accepted at Merchant establishments & ATMs worldwide Accepted at over 3, 80,000 merchant establishments & over 30,000 VISA ATMs across India and at over 29 million merchant establishments and over 1 million VISA ATMs around the world.

Utility Bill Payment facility You can also pay your utility bill payments i.e. electricity bills, telephone / mobile bills, etc. through our credit card by logging on to www.visabillpay.in/pnb.

LOAN SERVICES

Punjab National Bank is also a well known name in housing loan benefits. The bank offers both short term and long term loans. The rates are also affordable and can be paid within a particular time. The housing loans are given for a number of purposes such as:



Construction of a building



Purchase of a new house or a flat



Purchase of flat or house on a First Power of Attorney basis



For the purpose of repair or renovation of a house or a building

CAR LOAN/2 WHEELER LOAN Drive dream car/bike home. PNB gives loan for the purchase of new/old car, van or jeep, new bike at very attractive interest rates with a convenient repayment period.

LOAN AGAINST JEWELLERY Loan against Gold & Jewellery for individuals/business enterprises, both for business & personal needs.

TRADERS LOAN Maximize business turnover with PNB traders loan with minimum paper work and attractive rate of interest, for whole sellers, dealers, distributors, individuals, firms, registered cooperative societies & companies. Loans also available for purchase of shop /showroom.

HOUSING LOAN Bring own dream home to life. Avail ‘flexi’ housing loan and have the advantage of substantial savings on the interest component. Insurance cover for home loan borrowers available.

PERSONAL LOANS A scheme to meet all types of personal needs, for permanent/confirmed employees/Defence Personnel and Professionally Qualified Doctors.

CORPORATE LOANS Corporate can expand & diversify with user friendly Corporate Loans Products Working Capital, Term Loan, Bank Guarantee, Letter of Credit & others.

EDUCATIONAL LOAN Avail “Sarvottam Shiksha & Vidyalakshyapurti” schemes for studies In India & abroad and ensure a great career for child.

PNB GRAMIN CHIKITSAK Scheme for financing qualified medical practitioners for setting up clinics in rural areas at concessional rate of interest.

LOAN TO PENSIONERS PNB values the traditions of India by giving special benefits to the senior citizens.

LOANS TO WOMEN PNB’s “Mahila Sashaktikaran Abhiyaan” & “Mahila Samridhi Yojana” give special benefits to women customers that help in building their confidence & selfesteem.

Subsidiaries of Punjab National Bank     

PNB Gilts PNB Housing Finance PNB Investment Services PNB Insurance Broking PNB Life Insurance Co.

Joint Ventures of Punjab National Bank    

Principal PNB Asset Management Company Principal Trustee Company Assets Care Enterprises India Factoring & Finance Solutions. The PNB Housing Finance sanctions around 80% of the cost of the project. However, the maximum amount is around Rs 50 lakh. The maximum loan amount for the purpose of renovation and repair is Rs 5 lakh. In most cases, the loan is available for a period between 5 and 20 years before one becomes 65 years of age. The interest of the loan is based on the reducing balance and the principal amount of the loan is also based on the repaying capability of the borrower.  Punjab National Bank facilitate home loan for those who can never buy their own house to save interest cost, usually Punjab National Bank offers 75% to 80% as home loan. Also offers car finance to the minimum monthly amount with low interest, Furthermore Punjab National Bank offering cooperate banking which includes loan against future lease rentals, EXIM Finance, Cash Management Services and Gold card scheme for exporters.  This Bank also offers a lot of facilities for personal banking like saving fund account, current account, fixed deposit schemes, credit schemes, ATM Card, Nomination Facilities and deceased claim cases.  Punjab National Bank is famous for the helper of poor and needy people like farmers, this bank facilitate farmers to avail Krishi Card, agriculture credit

schemes, Punjab National Bank welfare trust Presently, it is the second largest bank of the country rendering a wide variety of banking services:

CENTRALISED BANKING SOLUTION (CBS) CBS, an inter-branch networking and data-sharing platform helps to operate account from any city in India having CBS networked branches. Changing status from Customer of the Branch’ to ‘Customer of the Bank’, presently, there are over 2,616 CBS networked brandies in 820 cites.

NRI’S & TOURISTS Currency exchange services are being provided by our Exchange Bureau’s spread throughout the country.

ONLINE TAX PAYMENT PNB provides the facility of online payment of service tax, excise duty, DGFT, custom duty & all charges under MCA.

MUTUAL FUNDS & INSURANCE The bank has tied-up with Principal Financial Group for providing Mutual Funds and Insurance services & also tied up for distribution & marketing of UTI Mutual Funds.

NRI SERVICES NRE, FCNR, RFC, NRO Deposit a/c investment Management & Housing Loan facilities for NRI’s.

FOREIGN EXCHANGE PNB has 150 branches authorized for handling foreign exchange business and these branches have been provided with SWIFT connectivity to ensure faster realisation of funds.

E-MONEY INDIA Send money to the loved ones in India through PNB’s e-Money India service. Draft delivery across 4,038 locations and Bank Credit to over 2,500 branches.

ONLINE

RAILWAY

RESERVATION/AIR

TICKET

BOOKING Say goodbye to long queues. PNB offers online booking & information through IRCTC payment gateway. Just click and travel comfortably.

DEPOSITORY SERVICE PNB Depository service provides the facility of having shares & securities in Demat form & executes transactions of sales & purchase hassle free electronically.

LOCKERS Now, customer can relax with assurance of having your locker at the PNB branch nearest to their home.

Safe Deposit Lockers

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   

For the safety of your valuables, our locker facility offers a safe, trustworthy space to store them. There is a nominal annual rent (payable in advance), which depends upon the size of the locker and the centre at which the branch is located. The Bank`s Safe Deposit (Locker) Service is made available to those customers who maintain a Savings/Current Account (individually or jointly). However, Lockers are not leased out to minors. Lockers can be leased out to Blind person also. Locker facility is provided by the Bank at its select branches. Allotment of lockers is on first-come-first served basis. At the time of hiring the locker, bank will obtain a minimum security deposit in the form of FDR from the lessee which will be decided by the bank from time to time. The locker will be operated during the specified timing displayed at the branches.

CUSTOMER CARE FACILITY All the banking queries and problems are just a call away! PNB presents 24 hr. customer care facility.

PNB GOLD COIN PNB gives opportunity to dazzle the well wishers, patrons, partners and acquaintances with the mystical charisma of PNB’s 999.9 fineness pure 24carat gold coins and to convey the true value of treasured relationship. Enjoy guarantee of purity & weight of hallmarked gold coins.

ELECTRONIC

CLEARING

SERVICE

(ECS)

&

ELECTRONIC FUNDS TRANSFER (EFT) Avail ECS for quick movement of funds in a paperless mode & EFT to ensure an expeditious transfer of funds by using electronic media.

WEALTH MANAGEMENT SERVICE PNB provides customized financial advisory services for individuals that includes Mutual Funds, insurance, Retirement Planning, Tax planning, & Debt Management to customers for wealth maximization.

ONLINE BILL PAYMENT No more queues to pay your bills. Now pay telephone, mobile, electricity, insurance & several other bills 24 hours, 365 days, from the desktop.

ORGANISATIONAL STRUCTURE Bank has its Corporate Office at New Delhi that supervises 13 FGM offices and 76 Circle Offices under which the branches function. The delegation of powers is decentralised up to the branch level to facilitate quick decision making . Head Office

Zonal Office

Regional Office

Branches

COMMITTEE Name of the Committee in PNB                   

Management Committee Audit Committee of the Board Risk Management Committee Share Transfer Stakeholders Relationship Committee Customer Service Committee I.T. Strategy Committee Appellate Authority and Reviewing Authority Special Committee of Board to monitor and follow up fraud Committee of Directors to Review Vigilance and Non Vigilance cases Remuneration Committee Nomination Committee Steering Committee for Vision Credit Approval Committee Election of Shareholder Directors – Voting by Public Sector Banks Committee of the Board to Monitor the Progress in Recovery Committee for Review of Identification of Willful Defaulter Non-Cooperative Borrowers Classification Review Committee Steering Committee of the Board on HR

RISK MANAGEMENT The future of banking will undoubtedly rest on risk management dynamics. Only those banks that have efficient risk management system will survive in the market in the long run. The effective management of credit risk is a critical component of comprehensive risk management essential for long-term success of a banking institution. Although capital serves the purpose of meeting unexpected losses, capital is not a substitute for inadequate decontrol or risk management systems. Coming years will witness banks striving to create sound internal control or risk management processes. With the focus on regulation and risk management in the Basel II framework gaining prominence, the post-Basel II era will belong to the banks that manage their risks effectively. The banks with proper risk management systems would not only gain competitive advantage by way of lower regulatory capital charge, but would also add value to the shareholders and other stakeholders by properly pricing their services, adequate provisioning and maintaining a robust financial structure. ‘The future belongs to bigger banks alone, as well as to those which have minimized their risks considerably.’

PROCESS   

Doorstep banking service for HNI customer corporate. Various offer for students and senior citizens. standardization of services

PHYSICAL EVIDENCE   

Logo with tag line “the name you bank upon” financial report. The company financial reports are issued to customer to emphasis creditability. Pass book and receipts.

PEOPLE   

Serves are 37 million customers. employees 87,928(2016). Employees of a bank represent the organization to its customer.

QUALITY OF EXPERIENCE 

Credence quality – because customer has to rely on reputation & name factor of bank.

GAP IN SERVICE QUALITY   

Gap between consumer expectation and management perceptions of consumer expectation. gap between service quality specification and service delivery.gap between service delivery and exchange communication. Gap between perceived service and expected service.

FORBES GLOBAL 2000 RANKING   

Punjab national bank was ranked 1243 in the Forbes global 2000. The bank has been ranked 248th biggest bank in the world by the bankers almanac, London. PUNJAB NATIONAL BANK is one of the big 4 banks of India along with ICICI BANK ,STATE BANK OF INDIA,HDFC BANK and BANK OF BARODA its main competitors.

CASH MANAGEMENT SERVICE (CMS) PNB’s CMS facilitates management of receivables and payments in technology driven environment, ensuring availability of funds at reduced cost, helping reconciliation at multi location accounts besides providing customized MIS.

FUNCTION OF PUNJAB NATIONAL BANK  The functioning of the Sector 8 branch of the Punjab National Bank in Panchkula is under the scanner in connection with the alleged Rs 50-crore fraud in distribution of compensation in land acquisition cases by the former district revenue officer-cumland acquisition collector (DRO-cum-LAC) of Panchkula.  National Highway Authority of India (NHAI) undertook fourlaning of national highway-73 stretch between Yamuna nagar to Panchkula and the DRO Panchkula was appointed as competent authority for land acquisition under the National Highways Act 1956.  A sum of Rs 495 crore was deposited in the joint account of DRO-cum-LAC and project director, NHAI, in the Sector 8, Panchkula, branch of the PNB.  In a letter to the chief manager of PNB, NHAI pointed out unauthorised and fraudulent transfers of funds and a total of seven fixed deposit receipt’s (FDR) from the joint account to an exclusive account of DRO-cum-LAC Panchkula.  The funds were transferred without consent of the the joint account holder, that is, project director, NHAI.  A total of five accounts in the name of DRO-cum-LAC were opened outside Panchkula district, at Jangpura (Delhi) branch of Punjab National Bank (PNB) during the tenure of Naresh Kumar Sheokand from 2012 to 2014.  Sheokand is accused of committing irregularities in distribution of compensation in the land acquisition cases and is currently under suspension.  NHAI also pointed out that the balance confirmation statement given by the bank indicating balance as on March 31, 2014 showed a total of 17 FDR’s of Rs 10 crore each.  The branch did not make any mention of seven FDR’s which were transferred to other branches.  The branch was also accused of providing false balance confirmation statement vide their letter dated April 11, 2015, wherein it was stated that there were 19 FDR’s amounting to over `185 crore and balance as on March 31, 2015 was over Rs 10 crore.  The total amount was shown as Rs 195 crore. A total of five FDR’s which were shown in the statement of April 11 were deleted by bank vide its letter dated June 12 without any withdrawals having taken place from the main account.  The NHAI claim that an amount of Rs 250 crore was transferred from their joint account to the exclusive account of DRO-cum-LAC on March 20, 2013, which was

reverted to the original account on April 23, 2013. However, the interest on the amount for this period is to be credited in NHAI’s account.  General manager-cum-project director NHAI, OC Mathur said that they had taken up the issue of irregularities committed by the Sector 8, Panchkula, branch with the higher authorities of the bank.  Chief Manager of Sector 8, Panchkula, PNB, said that he had joined the branch around 15 days ago and expressed his ignorance of the issue.

ACHIEVEMENT 

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.

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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.

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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.

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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.

GROWTH AND DEVELOPMENT OF PUNJAB NATIONAL BANK 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 segment of society especially the weaker section of the society: committed to excellence in serving .Corporate excellence emanate from good corporate governance exercised by adopting standard of transparency, accountability, professionalism, and ethical business practices with this in view, the has been making efforts for adopting the best practices. The bank commitment towards corporate governance is to bestow greater transparency and openness in the management and to ensure best performance by staff at all the levels to maximize the operational efficiency. Adopting the corporate governance as a work ethos, the bank is committed to enhancing the stakeholders value.

Balance Sheet of Punjab National Bank

------------------- in Rs. Cr. ------------------Mar '16

Mar '15

Mar '14

Mar '13

12 months

12 months

12 months

12 months

392.72 392.72 35,072.64 35,465.36

370.91 370.91 37,321.06 37,691.97

362.07 362.07 34,125.07 34,487.14

353.47 353.47 30,894.58 31,248.05

Deposits Borrowings Total Debt

553,051.13 59,755.24 612,806.37

501,378.64 45,670.55 547,049.19

451,396.75 48,034.41 499,431.16

391,560.06 39,620.92 431,180.98

Other Liabilities & Provisions Total Liabilities

16,273.94 664,545.67 Mar '16

17,204.89 601,946.05 Mar '15

15,093.44 549,011.74 Mar '14

15,019.15 477,448.18 Mar '13

12 months

12 months

12 months

12 months

26,479.07 47,144.02 412,325.80 157,845.89

24,224.94 31,709.23 380,534.40 151,282.36

22,245.58 22,972.87 349,269.13 143,785.50

17,886.25 9,249.13 308,725.21 129,896.19

5,222.73 2,844.78 2,377.95

3,551.48 1,387.55 2,163.93

3,419.74 1,408.18 2,011.56

3,357.68 1,428.85 1,928.83

Other Assets Total Assets

18,372.94 664,545.67

12,031.19 601,946.05

8,727.10 549,011.74

9,762.58 477,448.19

Contingent Liabilities Book Value (Rs)

359,017.11 180.61

293,586.00 203.24

238,008.93 952.50

231,810.55 884.03

Capital and Liabilities: Total Share Capital Equity Share Capital Reserves Net Worth

Assets Cash & Balances with RBI Balance with Banks, Money at Call Advances Investments Gross Block Revaluation Reserves Net Block

FUTURE PLANS OF PUNJAB NATIONAL BANK

To provide excellent professional services and improve its position as a leader in the field of finance and related service, build and maintain a team of motivated and committed workforce with high work ethos; uses latest technology aimed at customer satisfaction and act as effective catalyst for socio-economic development.

The bank is committed to its corporate mission to provide excellent professional services and improve its position as leader in the field of financial and related services, build, maintain a team of motivation and committed workforce with high work ethos use latest technology, aimed at customers and act as an effective catalyst of socio-economic development.

Punjab National Bank has focused quite a bit in rural areas, which is actually needed for our country. Their ATMs are given the facility of English, National Language Hindi and the local language of the state. They also provide mobile top-up facility.

SWOT ANALYSIS

STRENGTHS 

Brand name of Punjab National Bank (PNB) is established over the years.

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Single window clearance - a single employee provides wide variety of facilities to the borrower, minimizing the hassle of wastage of time.

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Appraisal techniques are used.

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Specialized software's are big assets.

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There is no penalty for prepayment from borrowers own service.

WEAKNESSES 

High interest rates as compared to other housing finance institutions.

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Top management takes large amount of time to approve high value seeking loan borrowers. No publicity.

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No marketing managers work, only through dsa's (direct sales agent).

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People are not aware of wide variety of schemes offered by the company; tend to think the company as only providing home loans.

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There is the shortage of staff at almost all branches which does not ensure easy addressable of the customers problems.

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Delegation of authority and responsibility is not proper.

OPPORTUNITIES 

Special rates of interest are offered during exhibitions.

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Special rates of interest can be introduced for employees of PSU'S & reputed national or multinational companies'

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Product life cycle is to be reviewed.

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The growing category of the builders ensure that good, high value & qualitative projects, providing them home loans with the new and innovative schemes can lead to over all development of the company.

THREATS 

The competition in market is very high due to the private players.

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The rates of interest of other players are quite low.

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Innovative schemes with horne loan from other players.

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The processing process is quite slow which leads to low housing finance.

A fraud case involving 32 cases worth Rs.3 crores at the one branch of PNB Housing Finance Limited in year 2002 leads decreasing brand name.

PEST FACTOR

POLITICAL FACTOR 

RBI’S 1991 Monetary policies and control system.

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To enlist confidence of global investors and international market players

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Number of legislative changes to enable competitive banking system.

ECONIMICS FACTOR 

Economic fluctuation – delay in Indian vision 2020.

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Every year RBI declares its 60 monthly policies

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If FDI limits are relaxed then more are brought in India through banking channels.

SOCIO ECONOMIC FACTOR 

Tradition maharaja pratha

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Change in lifestyle

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Literacy rate

TECHNOLOGICAL FACTOR 

Foreign banking sectors entered in Indian market with asserting the technological based approach.

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ATM machines

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Credit card policies

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IT services and mobile banking

CUSTOMER SATISFACTION Customer satisfaction refers to the extent to which customers are happy with the products and services provided by a business. Customer satisfaction levels can be measured using survey techniques and questionnaires Benefits to Punjab National Bank  



Documents Security: Fine Docs system facilitated role based access on all the records / documents through a user name and a password. Easy Sharing and Collaboration: All documents were stored in FineDocs with proper access control. This way authorized users were able to view /refer / share and modify the documents Audit Trail: FineDocs has the functionality by which each and every operation, event performed by the user like, user logins into the system, action done etc were recorded with the time, thus increasing the accountability.

IT STRATEGY  In 2000,to tackle the problem ,PNB hired ,a consultant and devised a two – pronged plan of action.  The plan comprised:  A short term goal- to meet the cvc deadline of 70% computerization.  A long term goal – to create dependable core banking infrastructure  And build nationwide network to connect different branches to the core infrastructure. CULTURE AND TECHNOLOGY ISSUES  PNB faced issues which were mostly cultural.  Most staffers were used to working in a manual environment.  In the new networked environment, personnel at the mode / counter didn’t actually ‘see’ the transactions updating in the various account books.

BRAND AMBASSADOR OF PNB

Punjab National Bank has engaged Mr. Virat Kohli as Brand Ambassador of the Bank. On this occasion, Mr. Virat Kohli informed Mrs. Usha Ananthasubramanian, Managing Director and CEO along with Sh. K.V. Brahmaji Rao and Dr. Ram S. Sangapure, Executive Directors of the Bank and other senior officials that ‘PNB is Mera Apna Bank’ as he is an account holder of the Bank since the age of 16 years. Today PNB is seen as a complete universal Bank. Mr. Virat Kohli, an energetic young sportsman having mass appeal to the youth of our country has been chosen as Brand Ambassador who comes with qualities like determination, focus and for whom winning is a habit. SYSTEM

   

Before deploying the core banking architecture . PNB used servers which were NT-based , from IBM. And from other vendors . The bank conducted benchmarking test for finnacle on various server platforms And it was satisfied with the performance of suns hardware on solaria’s. Suns fire servers. Solaria’s os and oracles RDBMS are now in use.

REQUIREMENTS  Punjab national bank (PNB) had certain requirements which were not being fulfilled by the existent system:  A unified view of business –related data.  Timely data compilation.  Improved customer service.  CRM with customer profiling and segmentation.  Monitoring of weak performance area.

IT STRATEGY  In 2000,to tackle the problem ,PNB hired ,a consultant and devised a two – pronged plan of action.  The plan comprised:  A short term goal- to meet the cvc deadline of 70% computerization.  A long term goal – to create dependable core banking infrastructure  And build nationwide network to connect different branches to the core infrastructure.   

CULTURE AND TECHNOLOGY ISSUES PNB faced issues which were mostly cultural. Most staffers were used to working in a manual environment. In the new networked environment, personnel at the mode / counter didn’t actually ‘see’ the transactions updating in the various account books.

GOALS OF PNB Punjab National Bank always looks forward for the betterment of customer service and ensured the members of bank for the finest services. Punjab National Bank also offering internet banking service to the customers to pay their utility bills, using e-commerce facilities, buy ticket and much more. PNB having more than 3700 ATMS all over the country and has the wide ATM network. The bank struggle for spreading their branches all over the world including sub-continent, Europe and USA, and Punjab National Bank will fulfill the requirement of every state. Punjab National Bank achieved many awards and achievement like “Niryatbandhu bronze trophy”, also received “Excellent performance in lending under PMEGP scheme”, “Skoch Challenge Award” and many other awards proving that the Punjab National Bank deserve to be an attainable and trustful bank.

PROBLEMS FACED BY PUNJAB NATIONAL BANK • Punjab National Bank generates a lot of physical documents for their existing clients. Managing these documents (Sorting, Indexing and Filing etc) was a very hectic process for them. • The regular procedure included taking out a page from the entire set of documents of original application forms and then working on it. This leads to papers being misplaced or left them in a dilapidated state, due to constant wear and tear. • For searching or locating any document / file was a hassle for the staff involved in this process. • Since paper based files/documents were accessible to each and every Person, they were liable to be tampered, and resulted sharing of any internal information with any unauthorized person. • Physical documents were prone to damage with time, moisture, rodents etc. • Also there was a problem of disaster recovery

PYRAMID’S SOLUTION  Pyramid IT Consulting proposed Punjab National Bank to automate manual Record / Document keeping process by providing its Document Management Solution – Fine Docs & Scanning Services – Fine Scan.  After the implementation of the DMS, the application form and other related documents got scanned and indexed with the user defined indexed values.  After this whenever there was a need to refer to the original document, a search feature of the DMS helped to retrieve the scanned copy of the document to the user.  Search in Document Management Solution has been carried out on the basis of title, as well as, keywords. PNB GEN NEXT o Longest repayment of 30 years o Limit based on future salary o No pre payment penalty o No EMI repayment during holiday of 3-5 years o Permissible age up to 40 years o Eligibility –salaried employees with minimum 3 years working experience o Purpose – for purchase or construction of house/ flat etc.

FINANCIAL RESULTS FOR THE QUARTER & FY ENDED 31ST MARCH 2016 PERFORMANCE HIGHLIGHTS  Global Business grew by 9.5% to Rs 9.65 Lac Cr.  CASA Deposits crossed landmark of Rs. 200000 Cr & its share to Domestic Deposits stood at 41.63%.  Operating Profit at Rs 12216 Cr for FY 16, more than Rs. 10000 Cr. for consecutive 5 years in a row.  Net Advances increased by 8.4 % on YOY to Rs.412326 Cr.  Share of Small Ticket Adv. to Domestic Non Food Credit. growing up and at 57.6%.  Domestic NIM stood at 2.95% during FY 16.  Cost of deposits came down to 5.85% during FY 16 from 6.09% as on FY 15 due to least dependence on bulk deposits. REORIENTATION OF BUSINESS:  The Bank has reoriented its business model in alignment with the economic scenario towards small ticket business. Riding on the Digital wave, PNB is driving fresh growth in business through its vast network of branches spread Pan India. BUSINESS TRANSFORMATION:  Bank has framed strategies for all-round development and strength under “PNB Indradhanush”. This is multidimensional approach for business transformation focusing at People development, Digital banking, improved customer service, Quality credit, Improved CASA and Profit maximization.  Defining the priorities, PNB is pioneer in setting up “War Room” for real time Resolution, Recovery and Up gradation of NPAs. NETWORK  Bank has 14756 touch points. Domestic branch network stands at 6760 and number of Business Correspondents at 7996 as on 31.03.2016. ATM network of the Bank is at 9463. INTERNATIONAL FORAYS  Bank is having 4 overseas branches, 2 in Hong Kong, 1 in Dubai and 1 Offshore Banking Unit in Mumbai and 4 Representative Offices (RO) at Dubai, Shanghai, Sydney and Dhaka.  Bank has two overseas subsidiaries viz. PNB International Ltd. –UK and Drug PNB Bank Ltd, One associate company viz. JSC SB PNB Kazakhstan and one Joint Venture Bank in Nepal i.e. Everest Bank Ltd. BUSINESS  Total Business of the Bank stood at Rs 965377 Cr as on Mar’16 registering a yoy growth of 9.5% over corresponding period last year. DEPOSITS  Total Deposits of the Bank recorded a yoy growth of 10.3% to reach Rs.553051 Cr as on Mar’16.  CASA deposits increased to Rs.205583 Cr in Mar’16 recording a yoy growth of 11.9%. Domestic

 

CASA share improved to 41.63% as on Mar’ 16 from 40.57% in Mar’ 15. The share is one of the highest among nationalized banks. Saving deposits increased by 12.8% on yoy basis to Rs 169426 Cr.

ADVANCES  Net Advances increased to Rs. 412326 Cr registering a yoy growth of 8.4% as on Mar’16 In line with Bank’s objective to achieve profitable growth from the grassroots, share of small ticket advances to Non food credit increased to 57.6% in Mar’16 from 55.6% in Mar’15.  Retail loans were at Rs 57801 Cr as on Mar’16, growing 19% on yoy basis over Mar’15. Housing loan grew yoy by a robust 25% to Rs 26923 Cr in Mar’16.  MSME Advances increased to Rs. 93472 Cr in Mar’16 showing yoy growth of 19.6%. MICRO, SMALL & MEDIUM ADVANCES  Credit to Micro & Small Enterprises grew by 17.4% to Rs 70711 Cr as on Mar’16.  Credit to Micro enterprises stood at Rs.29319 Cr showing yoy growth of 18.1%.  Under Pradhan Mantri Mudra Yojana (PMMY), the Bank has opened 596839 accounts and disbursed Rs 3593 Cr as on Mar’16. PROFITABILITY Operating & Net Profit  Operating Profit for FY ended Mar’ 16 stood at Rs 12216 Cr.  Net Profit for FY 16 stood at Rs (–) 3974 Cr. INCOME  Total Income stood at Rs 54301 Cr. during FY 16.  Net Interest Income during FY 16 stood at Rs 15312 Cr and Non-interest Income. ASSET QUALITY  As on Mar ’16, Gross NPA ratio stood at 12.90% and Net NPA ratio was at 8.61%.  Provision Coverage Ratio stood at 51.06% as on Mar’16.  Restructured assets of the Bank declined to Rs 20144 Cr in Mar’16 from Rs 38315 Cr in Mar’15  For intensifying the efforts in NPA reduction, a ‘War Room’ at HO has been created. E-auction drive and sale to ARCs are the other measures for recovery. FINANCIAL INCLUSION  PNB remains committed towards nation building and actively participated in all schemes launched by the Govt.of India for financial & social empowerment of the masses.  Under the PM Jan Dhan Yojana, Bank opened 130 lacs accounts and issued 97.6 lacs Rupay Cards as on Mar’ 16. Rs 1621 Cr have been mobilized in these accounts.  No of transactions through BC channel have increased to 298 Lacs in Mar’16 against 135 lacs in Mar’ 15.

MOVE TOWARDS DIGITALIZATION  Bank is moving towards digitalization and number of new age digital initiatives have been introduced to provide greater ease and improved delivery of products and services to customers.  Concerted efforts are on to increase usage of Alternate Delivery Channels which account for around 58% of transactions.

NEW PRODUCTS/INITIATIVES  Towards People Development, a new Mobile App based e-Learning Platform named ‘PNB Univ’ has been launched.  Tab Banking has been launched for acquisition of new customers using newly set up marketing vertical.  Mobile App based Banking - ‘PNB Mobiease’ and ‘ATM Assist’, for a complete SMS Banking solution and ATM related queries respectively.  Online Opening of PPF, RD & Saving accounts introduced in Internet banking (IBS).  Bank has become the first bank in the banking industry to start cash deposit through Micro ATMs.  For women development, new schemes like PNB Vanita, PNB Power Savings and Mahila Kaushal Vikas Yojna have been launched.  Besides, 32 ‘Women only’ branches, branded as ‘Akshaya’ opened for the women customers only.

SCHEMES OF PNB Punjab National Bank is extensively catering to banking needs of Non-resident Indians, Importers & Exporters particularly relating to foreign exchange business including Imports & Exports of Goods & Services as also Remittances etc.

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PNB offers various schemes / products /services relating to international banking. the broad details there of are as under Foreign Currency Non-resident Deposit A/c Scheme (FD) Non-resident External Deposit A/c Scheme (SB/CA/FD) Non-resident Ordinary Deposit A/c Scheme (SB/CA/FD/RD) Foreign Inward Remittances – Rupee Drawing Arrangements / Speed Remittances with Exchange Houses Money Transfer Schemes PNB-NRI REMIT Scheme

PNB Parivar  PNB Parivar (HRMS Package) was implemented in the year 2006 to act as a prerequisite to payroll processing/centralised salary requirements of our bank. Apart from providing niche facilities viz. centralized payroll processing and employee record maintenance, it also provides a plethora of other useful processes and functions. Some of these important activities include Performance Appraisal, Attendance, HR Management Information System, Training Management, Employee Selection and Promotion Process, Employee Self-Service and Absence Management. The payroll module automates the pay process by gathering data on employee and calculating various deductions and generating employee pay reports.  The training module provides a system for administering and tracking employee training and development activities. An employee is provided with the facility of online submission of leave, Assets and Liabilities, Performance Appraisal, Newspaper and Petrol reimbursement undertakings and also these facilities are available to him via Employee Self Service and can be accessed through the Internet. On the whole, the HRMS integrates employee information pertaining to different modules into a single point of access and management and provides a rigid and flexible framework for providing the above mentioned services.

PNB PROFILE Punjab National Bank, India’s first Swadeshi Bank, commenced its operations on April 12, 1895 from Lahore, with an authorised capital of Rs 2 lac and working capital of Rs 20,000. The far-sighted visionaries and patriots like Lala Lajpat Rai, Mr. E C Jessawala, Babu Kali Prasono Roy, Lala Harkishan Lal and Sardar Dyal Singh Majithia displayed courage in giving expression to the spirit of nationalism by establishing the first bank purely managed by the Indians with Indian Capital. Business Performance: During the long history of over 121 years of the Bank, 7 banks have merged with PNB and it has become stronger and stronger with a network of 6809 branches and 9669 ATMs as on 30th June’16. Today the Bank stands tall amongst nationalized banks in major financial parameters i.e., Global Business, Domestic Business, Domestic Deposits, Net Advances, CASA Deposits Savings Deposits and Operating Profit. The performance highlights of the Bank in terms of business and profit are shown below Rs. In Crore. Parameter

Mar`12

Mar`13

Mar`14

Mar`15

Mar`16

June`16 YoY Growth

Deposits

379588

391560

451397

501379

553051

553952

7.0

Advances

293775

308796

349269

380534

412326

391574

2.8

Total Business

673363

700356

800666

881913

965377

945526

5.2

Operating Profit

10614

10907

11384

11955

12216

3275

4.6

Net Profit

4884

4748

3343

3062

-3974

306

-57.5

 The Global Business of the Bank at Rs 945526 crore grew by 5.2% on YoY basis as on 30th June’16. Within the liability side, the Bank’s Global Deposits at Rs 553952 crore was above the March’16 level with a YoY growth of 7% in June’16. This was on account of 12.1% growth in CASA Deposits which crossed Rs 2,00,000 crore. The Bank has recorded consistently higher CASA share to Domestic Deposits which stood at 41.39% as on 30th June’16. The Saving Deposits of the Bank at Rs 171122 crore as on 30th June’16 grew by 14.4% on yearly basis.

 On the assets side, Net Advances of the Bank recorded reached Rs 391574 crore and registered growth of 2.8% on yearly basis as on 30th June’16. Within the asset side, the Bank placed a special focus on small ticket advances i.e., Retail, MSME and Agriculture credit. As a result of this, the share of small ticket advances to Domestic Non Food Credit increased from 56.1% in June’15 to 58.9% in June’16. The Bank reported 19.7% growth in Retail credit, 9.9% in Agriculture advances and 8.4% in MSME credit as on 30th June’16.

 In terms of Bottom Line parameters, the Bank has witnessed turnaround to Net Profit of Rs 306 crore in Q1 FY’17. The Bank’s Operating Profit also increased from Rs 3132 crore in Q1 FY’16 to Rs 3275 crore in Q1 FY’17. This was due to robust growth in Non Interest Income (68.5% on YoY basis). The Bank’s Trading Profit increased from Rs 237 crore in Q1FY’16 to Rs 601 crore in Q1FY’17 and Recovery in written off accounts increased from Rs 217 crore in Q1FY’16 to Rs 727 crore in Q1 FY’17.  In terms of key financial ratios, the Bank’s Domestic Net Interest Margin at 2.80% during Q1 FY’17 was one of the highest amongst nationalized banks. Due to reduction in bulk deposits, the Cost of Deposits moved southward from 5.99% in Q1 FY’16 to 5.46% in Q1 FY’17. The Bank has been able to maintain its Capital Adequacy Ratio above the regulatory requirement. The Bank’s CRAR stood at 11.58% which constituted Tier I ratio of 8.62% and Tier II ratio of 2.96%.  The Bank’s Gross NPA and Net NPA stood at Rs 56654 crore and Rs 35729 crore, respectively as on 30th June’16. In terms of ratios, the Gross NPA and Net NPA ratio stood at 13.75% and 9.16%, respectively.  The Bank continues to lay emphasis on improving the asset quality and the cash recovery and upgradation was over Rs 6000 crore in June’16. Further, the standard restructured assets declined to Rs 18909 crore in June’16 from Rs 39969 crore in June’15. This resulted in improvement in the ratio of standard restructured advances to gross advances from 10.19% in June’15 to 4.59% in June’16. The Provision Coverage Ratio increased from 51.06% in March’16 to 52.50% in June’16.

Digital Banking  The Bank launched bucket full of innovative digital products and services to make banking experience more pleasurable, more convenient and more rewarding. The digital solutions launched include the unique App enabling the customer not only to locate PNB’s ATM but also to lodge complaints related to ATMs with `PNB ATM Assist`. Other mobile apps are `PNB MobiEase` to provide single touch banking, ‘PNB Sleep Easy’ to disable and re-enable Internet banking and mobile banking password and ‘Green PIN’ to enable customers obtain duplicate PIN for debit card instantly through SMS request. The Bank is extending the SMS facility in 10

Regional Languages of choice which are widely spoken after Hindi and English for the customers.  These languages are Bengali, Gujarati, Kannada, Malayalam, Marathi, Odia, Punjabi, Tamil, Telugu and Urdu. The Bank has also introduced the facility to register for Mobile Banking through vast network of over 9000 ATMs.  In today’s digital world where customers enjoy the benefits of banking at their fingertips, the Bank has introduced Online PPF and RD account opening facility. Apart from this, the Bank has also launched online booking of locker facility anywhere in India through the corporate website.  Through the “Book your Locker-Anywhere in India” initiative, customers can search for vacant locker position - city wise, branch wise and register online for the same anywhere in India in case of availability. During FY’16, the Bank has also made official debut on the social networking sites i.e., Twitter and LinkedIn, with an aim of strengthening “Brand PNB” on social media and to engage with customers in a cost efficient manner.  The Bank is in process of introducing ‘PNB Unified Payments Interface (UPI)’, which will allow fund transfer via. Mobile App, link all accounts including those opened with other banks for making transactions and facilitate merchants to pull the transactions through Mobile App as an alternate POS & cash transfer. These endeavors will invigorate customers’ trust which continues to inspire the Bank’s enduring success story.

Financial Inclusion:  The Bank has always been in the forefront in partnering the economic as well as social development of the country. The Bank has proactively met its commitments towards social upliftment and financial empowerment of the targeted segments. This is evident from the fact that Ministry of Finance, Government of India, has declared PNB as first among all banks in deposit mobilized through Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts. PNB has opened 135 lakh accounts and mobilized Rs 1814 crore as on 30th June’16. The Bank has also issued around 99 lakh RuPay debit cards.  To provide card based transactions services to such customers, Micro ATMs have been introduced at Business Correspondent locations. PNB is the first bank to deploy Micro-ATMs with RuPay, Aadhaar based & other FI Transactions at BC locations.  To spread financial awareness across the length and breadth of the country, the Bank flagged off ‘Vitiya Jan Chetna Abhiyan’. This program will also emphasize on creating awareness about the Pradhan Mantri Jan Dhan Yojana, Atal Pension Yojana, Mudra Loans, Pradhan Mantri Jeewan Jyoti Yojana and Pradhan Mantri Jan Suraksha Yojana.

Corporate Social Responsibility  Corporate Social Responsibility (CSR) is an integral part of corporate business strategy of the Bank. The Bank is promoting welfare of people living in rural and semi urban areas as a part of its CSR activity.  Towards women empowerment, PNB became the first bank in the country to start opening of ‘Sukanya Samriddhi Deposit accounts’. The Bank has also formulated new schemes i.e., PNB Vanita financing scheme, PNB PoWer Ride, PNB PoWer Savings and Mahila Kaushal Vikas Yojna. The Bank has opened 45 ‘Akshaya’ branches as on 30th June’16 which are managed exclusively by women for the women customers only. Awards And Recognitions  The Bank has earned many awards and accolades in different areas. The major awards conferred upon the Bank during FY’16 are ‘Golden Peacock National Training Award 2016’ by Institute of Directors, ‘RBI Rajbhasha Award’, ‘Agriculture Leadership Award 2015’ by Agriculture Today Group’ and ‘Banking Excellence Award 2015’ in the category of ‘Best Bank for PMJDY (Large Bank)’ by Chamber of Indian Micro Small & Medium Enterprises (CIMSME).



The Bank was also adjudged as the “Most Respected Public Sector Bank’ by Businessworld. Amongst nationalized banks, PNB topped the chart of India’s Most Trusted Brand as per ‘The Brand Trust Report 2016’ launched by Trust Research Advisory. As per ‘The Banker, PNB with world rank at 175th in 2016 has regained its Number One slot amongst nationalized banks.

CURRENT SCENARIO OF PUNJAB NATIONAL BANK 

With its presence virtually in all the important centres of the country, Punjab National Bank offers a wide variety of banking services which include corporate and personal banking, industrial finance, agricultural finance, financing of trade and international banking. Among the clients of the Bank are Indian conglomerates, medium and small industrial units, exporters, non-resident Indians and multinational companies. The large presence and vast resource base have helped the Bank to build strong links with trade and industry.

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Punjab National Bank is serving over 3.5 crore customers through 4062 branches and 447 extension counters - largest amongst Nationalized Banks. The Bank was recently ranked 21st amongst top 500 companies by the leading financial daily, Economic Times. PNB's attempts at providing best customer service has earned it 9th place among Indias Most Trusted top 50 service brands in Economic TimesA.C Nielson Survey. PNB is also ranked 368 amongst the top 1000 banks in the world according to "The Banker" London.



At the same time, the bank has been conscious of its social responsibilities by financing agriculture and allied activities and small scale industries (SSI). Considering the importance of small scale industries bank has established 31 specialised branches to finance exclusively such industries.

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Strong correspondent banking relationship which Punjab National Bank maintains with over 200 leading international banks all over the world enhances its capabilities to handle transactions world-\vide. Besides, bank has Rupee Drawing Arrangements with 15 exchange companies in the Gulf and one in Singapore. Bank is a member of the SWIFT and over 150 branches of the bank are connected through its computer-based terminal at Mumbai. with its state-ofart dealing rooms and well-trained dealers, the bank offers efficient forex dealing operations in India.



The bank has been focussing on expanding its operations outside India and has identified some of the emerging economies which offer large business potential. Bank has set up representative offices at Almaty:

Kazakhistan, Shanghai: China and in London. Besides, Bank has opened a full fledged Branch in Kabul, Afghanistan. Keeping in tune with changing times and to provide its customers more efficient and speedy service, the Bank has taken major initiative in the field of computerization. All the Branches of the Bank have been computerized. The Bank has also launched aggressively the concept of "Any Time, Any Where Banking" through the introduction of Centralized Banking Solution (CBS) and over 2000 offices have already been brought under its ambit. 

PNB also offers Internet Banking services in the country for Corporate as when as individuals. Internet Banking services are available through all Branches of the Bank networked under CBS. Providing 24 hours, 365 days banking right from the PC of the user, Internet Banking offers world class banking facilities like anytime, anywhere access to account, complete details of transactions, and statement of account, online information of deposits, loans overdraft account etc. PNB has recently introduced Online Payment Facility for railway reservation through IRCTC Payment Gateway Project and Online Utility Bill Payment Services which allows Internet Banking account holders to pay their telephone, mobile, electricity, insurance and other bills anytime from anywhere from their desktop.

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Another step taken by PNB in meeting the changing aspirations of its clientele is the launch of its Debit card, which is also an ATM card. It enables the card holder to buy goods and services at over 99270 merchant establishments across the country. Besides, the card can be used to withdraw cash at more than 11000 ATMs, where the 'Maestro' logo is displayed, apart from the PNB's over 600 ATMs and tie up arrangements with other Banks.

WAY FORWARD  For FY’17, the Bank will primarily focus on resolution of stressed assets and accelerate its recovery efforts to improve asset quality. Apart from this, the Bank will continue to align its business model in order to augment profitable growth to deliver long term value to the stakeholders.  The Bank also remains committed to its strategy of “Retail PNB – Digital PNB” wherein mobilizing low cost deposits and increasing the share of small ticket advances will drive business growth successfully powered by technology. The Bank will also focus on keeping itself well capitalized to nourish its business growth.

RESEARCH METHOLOGY

RESERCH DESING Since the research is for types of account in PNB Bank accounts .The research uses Secondary for analysis and interpretations. Also the primary data was collected after the thorough study of secondary data by visiting an PNB Bank and questioning the representatives there. The answers received were interpreted and analyzed for the successful completion of this project. OBJECTIVE The confined objectives of the present study are: To analyzed the types of account in PNB Bank To study importance’s of account to the customer, different account in PNB Bank SCOPE OF THE STUDY The study was types of account in PNB Bank DATA COLLECTION There are two methods of collection that can be considered when collecting data for research purpose. These data collection types include the following 1. primary data 2.secondary data Both the secondary and primary data collection methods were used in the study.

PRIMARY DATA Primary data are those which are collected a fresh and for the first time, and thus happen to be original in character. Methods of Primary Research:  Interview  Telephonic Interview  Mail Survey

SECONDARY DATA

Secondary data means data that are already available i.e. they refer to the data which have already been collected and analyzed by someone else. Published secondary data was used to get an overall idea about the growth of banking sector after globalization with the help of sources like: 

Books



Working papers



Newspapers



Web Sites

Secondary research or desk research is so called because it is usually concerned with the use of secondary data or information that is already available. This means such data have already been collected and analysed by someone else. Such information has to be gathered a fresh specifically for any research project. This information is inclusive of a wide range of material like books,

magazine,

websites

company

reports,

government

statistics.

Newspapers and Journal articles to reports worked out by commercial markets research agencies.

Books, Net, Newspaper, etc are used to get more information to know about the concepts of banking. Websites are also used to take general information regarding working methods of Punjab National Bank.

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.

FINDING Most of the customers feels great of using PNB Credit Card as they always get the statement on time via internet and post and also the SMS reminder of Payment and Call from the centre before the last day. 

Many found internet banking useful and convenient. So when PNB said that transactions could happen on the web – customers willingly applied for such service offered by PNB.



“Better service, Good response.” It is a fastest growing bank which provide better service and good security among all banks.

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Phone Banking, A.T.M. Services, Internet Banking, Customer Related Services are some of the products which makes customers conduct satisfactory transactions.

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The bank is growing rapidly on the international front and plans to continue its growth globally. It has already acquired permission from RBI to open further branches abroad especially one in DIFC, Dubai. It helped the customers to go beyond the boundaries of countries banking.



Customers feel very satisfied regarding the products & services offered by the PNB & thus find its service & service related issues good.

QUESTIONARRIE: 1)What are the types of PNB Bank account? ANS: fixed deposits ,saving account ,current account ,salary account , women account kids account. 2)what is the rate of interest on fixed deposit? ANS;7days-10years,3.50%p.a-7.25%p.a . 3)what are the facility provided by PNB to the account holder? ANS; ,ATM, debit card ,credit card ,overdraft facility, money transfers. 4)What are kinds of loan are give on the basic of account? ANS; Home loan ,care loan ,education loan, personal loan, gold loan. 5) What are scheme for fix deposit ,saving account ,current account? ANS i) fixed deposits scheme: Tax saving fixed deposits schemes ,PNB Bank super saver deposit, PNB bank sweep - in – facility ii) Saving account schemes :regular saving

account , zero balances saving account

,womens saving account . iii) Current account schemes: trade current account. 6) what are the features of saving account ? ANS: i) Free Net Banking (on request) for convenient banking. ii) Use National Electronic Funds Transfer (NEFT) to transfer funds Bank account . iii) Enjoy Free IVR based Phone Banking (Agent assisted calls will be charged*). Free passbook facility for all account holders (individuals) 7) What are the use of net banking ? ANS: up-to -second detail account, access any time for any where, view your credit card detail and your credit cards bill, pay your tax online ,check your account balances. 8) Tell me about something over draft facility? ANS :over draft facility given to the give to current account holder, minimum monthly net income account holder 15000.

9) what are document are require for opening PNB account? ANS: Identity proof, address proof, latest passport size photographs.

CONCLUSION As per my knowledge & direction given by guider I am SHARMA KAVITA AMRESH I have done for the University of Mumbai the project of STUDY OF PUNJAB NATIONAL BANK. Here I specially thanks to University which is give me an opportunity to show my project ability. With the hope of this project we can understand what are various types of accounts are available in PNB Bank .We can understand the important of as well as what are returns are given by ban on accounts .So once again I want give special thanks to My College ,My Teachers & University who is given me opportunity for making this project.

Punjab National Bank (PNB) was registered on May19, 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 about4,904 branches across764 cities. It serves over 37 million customers. The bank has been ranked248th biggest bank in the world by Bankers Almanac, London. The bank's total assets for financial year2007 were aboutUS$60 billion.Punjab National Bank (PNB) has the distinction of being the first Indian bank to have been started solely with Indian capital. The bank was nationalized in July1969 along with13 other banks.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.

From its modest beginning, the bank has grown in size and stature to become front-line banking institution in India at present.

A professionally managed bank with a

successful track record of over 110 years. Strategic business area covers the large IndoGangetic belt and the metropolitan centers. Strong correspondent banking relationships with more than217 international banks of the world. More than50 renowned international banks maintain their Rupee Accounts with PNB. Well equipped dealing rooms;20 different foreign currency accounts are maintained at major centers all over the globe.

BIBLIOGRAPHY

BOOKS

 Abhayankar Dipak, “International Banking and Finance”, Third edition, Vipul Prakashan, Mumbai.  Bhandgar P. K., “Environment and Management of Financial Services”, Third edition, Vipul Prakashan, Mumbai.

WEBLIOGRAPHY www.google.com www.punjabnationalbank.com www.finance.indiamart.com www.pnbindia.com www.pdfcoke.com