INDUSTRIAL PROJECT REPORT

ON
PUNJAB NATIONAL BANK

DEPARTMENT OF MANAGEMENT SCIENCES

MAHATMA GANDHI CENTRAL UNIVERSITY, BIHAR

SUBMITTED BY PRAVEEN KUMAR

ROLL NO MGCU2019MGMT4017
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 Table of content
1. Introduction and importance of industrial Visit.
2. Company Profiling
- Company History
- Board of Directors
- Company’s Products and Services
- USP of the Company/Organization
- Global presence
3. Objective of Study
4. Financial Position
5. Marketing Structure ( Mention their Competitor, Market
Share, Recent Market position)
6. Human Resource Practices and Staff welfare schemes.
7. SWOT Analysis and Learning
8. New Initiative and Research and Development
9. Conclusion and References

5
Introduction and Importance of
Industrial Visit

Industrial visit has its own importance in a

career of a student who is pursuing a
professional degree. It is considered as a part of
college curriculum. The objective of an
industrial visit is to provide us an insight
regarding internal working of companies. We
understand that theoretical knowledge is not
enough for a successful professional career.
With an aim to go beyond academics, industrial
visit provides students a practical perspective of
the work place. It provided us with an
opportunity to learn practically through
interaction, working methods and employment
practices. It gives us an exposure to current
work practices as opposed to possibly
theoretical knowledge being taught at college.
Industrial visits provide an excellent
opportunity to interact with industries and
know more about industrial environment.
Industrial visits are arranged by colleges for us
with an objective of providing us an opportunity
to explore different sectors like IT,
Manufacturing,services, finance and marketing.
Industrial visit helps to combine theoretical
5
knowledge with practical knowledge. Industrial
realities are opened to the students through
industrial visits.

5
 Introduction to Punjab
National Bank

PNB was born on May 19, 1894. The founding board was
drawn from
Different parts of India professing different faiths and a
varied background with, however, the common objective of
providing country a truly national bank which would further
the economic interest of the country.
The Bank opened for business on 12 April, 1895. The first
Board of 7 Directors comprised of Sardar Dayal Singh
Majithia, who was also the founder of Dayal Singh College
and the Tribune; Lala Lalchand one of the founders of DAV
College and President of its Management Society; Kali
Prosanna Roy, eminent Bengali pleader who was also the
Chairman of the Reception committee of the Indian National
Congress at its Lahore session in 1900, Lala Harkishan Lal
who became widely known as the first industrialist of Punjab;
EC Jessawala, a well known Parsi merchant and partner of
Jamshedji & Co. of Lahore; Lala Prabhu Dayal, a leading
Raise, merchant and philanthropist of Multan; Bakshi Jaishi
Ram, an eminent Civil Lawyer of Lahore; and Lala Dholan
Dass, a great banker, merchant and Raise of Amritsar. Thus a
6
Bengali, Parsi, a Sikh and a few Hindus joined hands in a
purely national and cosmopolitan spirit to found this Bank
which opened its doors to the public on 12th of April 1895.
They went about it with a Missionary Zeal. Sh. Dayal Singh
Majithia was the first Chairman, Lala Harkishan Lal, the first
secretary to the Board and Shri Bulaki Ram Shastri Barrister
at Lahore, was appointed Manager.

A Maiden Dividend of 4% was declared after only 7 months

of operation. Lala Lajpat Rai was the first to open an account
with the bank which was housed in the building opposite the
Arya Samaj Mandir in Anarkali in Lahore. His younger
brother joined the Bank as a Manager. Authorized total
capital of the Bank was Rs. 2 lakhs, the working capital was
Rs. 20000. It had total staff strength of nine and the total
monthly salary amounted to Rs. 320.
The first branch outside Lahore was opened in Rawalpindi in
1900. The Bank made slow, but steady progress in the first
decade of its existence. Lala Lajpat Rai joined the Board of
Directors soon after. In 1913, the banking industry in India
was hit by a severe crisis following the failure of the Peoples
Bank of India founded by Lala Harkishan Lal. As many as 78
banks failed during this crisis. Punjab National Bank
survived. Mr. JH Maynard, the then Financial Commissioner,
Punjab, remarked...."Your Bank survived...no doubt due to
good management". It spoke volumes for the measure of
confidence reposed by the public in the Bank`s management.
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The years 1926 to 1936 were turbulent and loss ridden ones
for the banking industry the world over. The 1929 Wall Street
crash plunged the world into a severe economic crisis.

In 1951, the Bank took over the assets and liabilities of Bharat
Bank Ltd. and became the second largest bank in the private
sector. In 1962, it amalgamated the Indo-Commercial Bank
with it. From its dwindled deposits of Rs. 43 crores in 1949 it
rose to cross the Rs. 355 crores mark by the July 1969. Its
number of offices had increased to 569 and advances from
Rs. 19 crores in 1949 to Rs. 243 crores by July 1969 when it
was nationalized|
Since inception in 1895, PNB has always been a "People`s
bank" serving millions of people throughout the country and
also had the proud distinction of serving great national leaders
like Sarvshri Jawahar Lal Nehru, Gobind Ballabh Pant,
Lal Bahadur Shastri, Rafi Ahmed Kidwai, Smt. Indira Gandhi
etc. amongst other who banked with us.

In Brief: -
Punjab National Bank (PNB) was set up in 1895 in Lahore –
and 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. Today,
PNB is a professionally managed bank with a successful
track record of over 110 years. The bank has the 2nd largest
branch network in India, with 4525 branches including 432
8
extension counters spread throughout the country. PNB was
ranked as 248th biggest bank in the world by Bankers
Almanac, London. Punjab National Bank is not only the first
bank to specializing credit rating models in India but also the
first one to launch image based cheque transaction system for
collection of intra bank intercity cheques there by providing
credits merely in 48 hrs. in 13 cities.

VISION
To be a Leading Global Bank with Pan India footprints and
become a household brand in the Indo- Gangetic Plains
providing entire range of financial products and services
under one roof

MISSION
Banking for the unbanked, the name you can bank upon………

9
 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.

1
0
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".
1
1
 Mergers and acquisitions

Acquisition
Number Company Location Price Ref(s).
date

1 1951 Bharat Bank Ltd. New Delhi, India —

Universal Bank of
2 1961 Dalmianagar, Bihar, India —
India

Indo-Commercial
3 1962 India —
Bank

Hindustan
4 1986 India —
Commercial Bank

5 1993 New Bank of India New Delhi, India —

6 2003 Nedungadi Bank Kozhikode, Kerala, India —

 Oriental
Bank of
 Gurugram (Head
Commerce
7 2020 Office) — [16]
 United
 Kolkata (Head Office)
Bank of
India

1
2
 Amalgamation

On 30 August 2019, Finance Minister Nirmala

Sitharaman announced that the Oriental Bank of
Commerce and United Bank of India would be merged
with Punjab National Bank. The proposed merger would
make Punjab National Bank the second largest public
sector bank in the country with assets of ₹17.95 lakh
crore (US$250 billion) and 11,437 branches.[3][17] The
Union Cabinet approved the merger on 4 March 2020.
PNB announced that its board had approved the merger
ratios the next day. Shareholders of Oriental Bank of
Commerce and United Bank will receive 1,150 shares
and 121 shares of PNB, respectively, for every 1,000
shares of they hold.[18] On 1 April 2020, the merger
came into effect.[19][20] Post merging, all customers of
other two merging banks are now be treated as the
customers of PNB. [6]

1
3
 Product and Services offered
by PNB
 Savings Fund Account: Total freedom salary account,
PNB Prudent Sweep, PNB Vidyarthi Account, PNB
Mitra SF
 Account Current Account: PNB Vaibhav, PNB Gaurav,
PNB Smart Roamer
 Agriculture Banking: Farmers Welfare Central Sector
Schemes, Agriculture Credit Schemes
 Corporate Banking: Cash Management, Exim finance

 Financial Services: Insurance Business, Mutual Fund,

Online trading
 International Banking: Gold loan scheme, N.R.E account,
N.R.O account
 Personal Banking: Loan, Debit card, Credit card,
Recurring Deposit, Salary Account, Fixed Deposits
 Online Services: Internet Banking, Share Trading,
Mobile Banking, Bill payments, Money Transfer, Credit
Card

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Borad of Director in Punjab National Bank
Managing Director & Chief Executive Officer

Mr.S. S. Mallikarjuna Rao

Managing Director & Chief Executive Officer

Executive Directors

Sanjay Kumar

Vijay Dube
15
 Executive Director

Sh Agyey Kumar Azad

Directors

Pankaj Jain

Vivek Aggarawal

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Dr Asha Bhandarker
Share Holder Director

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 Products / Services

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.
PNB offers various schemes / products /services relating to
international banking. the broad details thrreof are as
under

Indo Nepal Remittance Scheme (INREMIT Scheme)

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

Exchange of Foreign Currency Travellers
Cheques/Notes

World Travel Card

Buyers` / Suppliers` Credit against Imports into India

Letter of Guarantee (issued on behalf of foreign bank)
15

Precious Metal Business (on consignment basis)

Gold (Metal) Loan Scheme for Domestic Jewellery
Manufacturers.

ECGC – Bank assurance - Selling of policies to exporters

USP of PNB

 Punjab National Bank is one of the Big Four banks

of India

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 Global Presence Of PNB

Bank is having overseas presence in 9 countries as

under:
Overseas branches at

DIFC Dubai

Hong Kong (One branch)

Subsidiaries, Associate and joint venture


Punjab National Bank (International) Ltd, UK (7
branches) - Subsidiary

Druk PNB Bank Ltd, Bhutan, (8 branches) - Subsidiary

JSC Tengri Bank, Kazakhstan (9 branches) - Associate

Everest Bank Ltd, Nepal (95 branches) - Joint venture

Overseas branches are providing trade finance facilities

like Buyers Credit and External Commercial Borrowing
(ECB) to customers of our domestic branches. These
branches also facilitate remittances for Non Resident
Indians (NRIs) etc.
Our domestic branches may utilize the services of these
overseas branches/ subsidiaries/ joint venture/ associate
Banks for advising import letters of credit (LCs),
forwarding export bills drawn by domestic exporters for
realization depending upon the reimbursement
instructions contained in Letters of credit (LCs). Branches
may also address queries, if any, to the overseas branches
17
through email or may contact their respective Back Offices
situated at New Delhi.
Bank is having Joint Venture with Everest Bank Ltd. (EBL),
Kathmandu, Nepal. Bank is having a Rupee Drawing
Arrangement (RDA) for facilitating inward remittances
from Nepal and INREMIT scheme for remittances from
India to Nepal. EBL is having a representative office at New
Delhi, and the branches can contact them for any help/
query.
The domestic branches can also get assistance from
subsidiaries functioning at UK, Bhutan and associate Bank
at Kazakhstan for any requirements of its customers having
business interest in these countries.
The domestic branches can also contact the Back Offices of
BO: DIFC Dubai, BO: Hong Kong and PNBIL at New Delhi for
any transactions related assistance/information with these
overseas branches/subsidiaries.

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 OBJECTIVE OF STUDY

Objective of this project is to analyse the financial position

of the firm and industry.
To know it’s global presence.
To know Company’s Products and Services
To know USP of the Company
To know company’s Marketing Structure.
To know their Competitor.
To know their Market Share.
To know their Market position.
To know their Human Resource Practices and Staff welfare
schemes.

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 Financial Position of PNB
Ratios Analysis

Mar 31, Mar 31, Mar 31, Mar 31, Mar 31,
(Rs in Cr.)
2020 2019 2018 2017 2016

PER SHARE RATIOS

Adjusted EPS (Rs.) 0.50 -21.67 -44.49 6.23 -20.24
Adjusted Cash EPS (Rs.) 1.40 -20.41 -42.41 8.22 -18.23
Reported EPS (Rs.) 0.50 -21.67 -44.49 6.23 -20.24
Reported Cash EPS (Rs.) 1.40 -20.41 -42.41 8.22 -18.23
Dividend Per Share 0.00 0.00 0.00 0.00 0.00
Operating Profit Per Share (Rs.) -11.77 -48.10 -100.99 -30.61 -62.23
Net Operating Income Per Share
79.85 111.45 173.86 222.16 241.52
(Rs.)
Free Reserves Per Share (Rs.) 0.00 0.00 0.00 0.00 0.00

PROFITABILITY RATIOS
Operating Margin (%) -14.73 -43.15 -58.08 -13.78 -25.76
Adjusted Cash Margin (%) 1.49 -16.01 -20.58 3.11 -6.59
Adjusted Return On Net Worth
0.58 -24.20 -32.85 3.47 -11.20
(%)
Reported Return On Net Worth
0.58 -24.20 -32.85 3.47 -11.20
(%)
Return On long Term Funds (%) 64.41 45.64 36.10 90.01 74.36

LEVERAGE RATIOS
Long Term Debt / Equity 0.00 0.00 0.00 0.00 0.00
Owners fund as % of total Source 7.56 5.74 5.50 5.77 6.02
Fixed Assets Turnover Ratio 0.07 0.07 0.07 0.07 0.08

LIQUIDITY RATIOS
Current Ratio 2.47 2.23 1.38 1.22 1.13
Current Ratio (Inc. ST Loans) 0.05 0.05 0.05 0.03 0.03
Quick Ratio 38.31 35.35 22.72 28.98 28.09
Fixed Assets Turnover Ratio 0.07 0.07 0.07 0.07 0.08

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 PNB Competitors
Below are the top 6 Punjab National Bank competitors:
1. Indian bank

2. Andhra Bank

3. Canara bank

4. ICICI Bank

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 Market Share Of PNB

Shareholders (as on 31 December

Shareholding
2019) [24]

Promoter Group (Govt. of India) 83.2%

FIs / Banks / Insurance 5.6%

Resident Individual 5.7%

Mutual Funds 2.3%

Foreign Institutional Investors (FIIs) 2.2%

Others 1.1%

Total 100.0%

22
 SWOT ANAYLYSIS OF PNB

SWOT analysis of Punjab National Bank analyses the

brand/company with its strengths, weaknesses,
opportunities &
threats. Punjab National Bank is one of the leading
brands in the banking & financial services sector.
In addition to
SWOT Analysis, the table below also lists the top
Punjab National Bank competitors and elaborates
Punjab National Bank
segmentation, targeting, positioning & USP.

Punjab National Bank

SWOT Analysis

 Strengths

Below is the Strengths, Weaknesses,

Opportunities & Threats (SWOT)
Analysis of Punjab National Bank. Strengths
are:
23
1. Diversified operations with 5100 branches
2. Strong I. T support with “best fit” approach

3. Schemes for small and medium scale businesses

4. It is the second largest state-owned

commercial bank in India with about 5000

branches across 764 cities
5. Its 56,000+ workforce serves over 37 million customers

 Weaknesses

Here are the weaknesses in the Punjab National Bank SWOT

Analysis:
1. Less penetration in the urban areas

2. Inadequate advertising and branding as compared to other

banks
3. Legal issues regarding employees caused a bad name of PNB

24
  Opportunities
Following are the Opportunities in Punjab National Bank
SWOT Analysis:
1. Small scale business banking across India

2. Expansion in other countries for international banking

3. Installation of more ATM’s and better customers services

 Threats
The threats in the SWOT Analysis of
Punjab National Bank are as
mentioned:
1. Economic crisis and economic fluctuations

2. Highly competitive environment

3. Stringent Banking Norms by the RBI and the Govts

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 Human Resource Practices and
Staff Welfare Scheme of PNB
PUNJAB NATIONAL BANK (PNB) 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 5669
branches across 800 cities as on 31-03-2012. It serves over 37
million customers. The bank has been ranked 248th biggest
bank in the world by Bankers Almanac, London. PNB has a
banking subsidiary in the UK as well as branches in Hong Kong
and Kabul; and representative offices in Almaty, Shanghai and
Dubai. PNB commenced its operations in Lahore in 1895. It has
the distinction of being the first Indian bank to have been
started solely with Indian capital that has survived to the
present. Its founders included several leaders of the Swadeshi
Movement such as Dyal Singh Majithia, Lala Harkishen Lal, Lala
Lalchand, Sri Kali Prosanna Roy, Shri E.C. Jessawala, Shri
Prabhu Dayal, Bakshi Jaishi Ram, and Lala Dholan Dass. Lala
Lajpat Rai was actively associated with its management in the
early years. In 1904, it established branches in Karachi and
Peshawar and absorbed Bhagwan Dass Bank, a scheduled
bank located in Delhi circle in 1940. And in 1951, it acquired
the 39 branches of Bharat Bank (Established in 1942); Bharat
Bank became Bharat 110 Nidhi Ltd., and subsequently
acquired Universal Bank of India in 1961. During 1960s, PNB
17
amalgamated Indo Commercial Bank (Established in 1933) as
a rescue step. The Government of India nationalized PNB and
13 other major commercial banks on July 19, 1969. Punjab
National Bank was ranked 1243rd in the Forbes Global 2000.
At present, the brand PNB commands respect and confidence
in the eyes of the public and its shareholders. The bank with
its sound and strong fundamentals remained unscathed by the
economic slowdown and global financial crisis of 2008-09. It
not only maintained its leading position among the
Nationalized Banks in the above turbulent period, but is once
again poised to excel in its business as the economy shows
signs of improvement. The image and perception of PNB in the
Government, industry and public is aptly reflected in the
awards and accolades it has bagged recently. The bank was
declared the “Best Public Sector Bank” by a survey conducted
by The Financial Express and Ernst and Young. PNB was ranked
26th amongst India‟s top 500 listed companies by “ET 500”.
Globally, the “The Banker Magazine” (London) placed PNB at
239th position amongst the top 1000 Global Banks, while
Forbes‟ ranking of 2000 global giants placed it at 695th
position. The Bank was conferred with the “Best Corporate
Social Responsibility Practice” award by the Bombay Stock
Exchange. The Bank was also declared the winner of the Gold
trophy of SCOPE Meritorious Award for Excellence in
Corporate Governance 2009 by Standing Conference of Public
Enterprises amongst the Public Sector Enterprises, a coveted
award received by the Bank from the hands of the Hon‟ble
President of India. The Bank also received the Golden Peacock
18
Award for Excellence in Corporate Governance for 2009 from
the Institute of Directors. PNB is committed to build business
through long-term sustained relationships with its customers.
It has been recognized as the bank offering highest level of
customer satisfaction in Delhi and Chennai. It has international
presence in 9 countries. It constantly innovates and reorients
strategies, and realigns business processes with advanced
technology to serve its customers better to earn strong brand
loyalty and recall value. 5.2.1 Human Resources Management
With the objective to give due attention at the macro-level
human resource management issues, a new human resource
organization structure has already been established by the
bank at all levels, by carving out the routine administrative
functions and delegating them to a separate Personnel
Administration Division (PAD). This has enabled the Human
Resources Development 111 Division (HRDD) to focus on
strategic thinking necessary for meeting human resource
challenges. The Personnel Administration Division (PAD) looks
after administration and implementation issues such as
Payroll, Transfers and Postings, Promotions, Disciplinary
Actions, Industrial Relations, etc., while the Human Resource
Development Department (HRDD) deals with the broader
Human Resource Policy (HRP) framework, manpower planning
and development and welfare issues. The Bank has also
constituted a sub-Committee on human resource comprising
of some of the Top Management Bank officers for deliberating
on various human resource issues and for piloting
organization-wide human resource interventions. 5.2.2.
19
Trends Table 5.1 portrays the data describing the importance
of human factor in PNB. Various indictors showing the bank‟s
growth relating to its human resources have been discussed in
terms of branch network, staff strength, business per
employee, profit per employee, deposits per employee,
advances per employee, cost per employee and establishment
expenses per employee over the period of study. The data has
been analysed by calculating mean, standard deviation,
variance and compound average growth rate.

20
 New Initiative In PNB

State-owned Punjab National Bank NSE 2.88 % (PNB)

on Friday launched a financial inclusion and literacy
initiative 'Gram Sampark Abhiyan' to commemorate the
150th birth anniversary of Mahatma Gandhi.
The nationwide campaign was launched by Minister of
Agriculture and Farmers Welfare Narendra Singh
Tomar, PNB said in a statement.

The campaign is centred on four key themes -- digital,

credit, social security and financial literacy that will
encapsulate various activities and prescribes the
cherished theme of 'Aatmanirbhar Bharat', it said.

Upon commencement, PNB's 3,930 rural and 2,752

semi-urban branches will aim to reach 526 districts during
the campaign, with two camps per branch every month, it
said.

This campaign will culminate on December 31, 2020

covering 526 districts in 24 states, including Maharashtra,
Uttar Pradesh, Bihar, Gujarat, Odisha, Manipur, Tripura
and Telangana.

India’s second-largest Public Sector Bank, Punjab

National Bank (PNB) has launched a nationwide
initiative to combat the spread of COVID-19,
46
complementing the Government of India’s extensive
efforts to containchallenges and risks posed by the
growing pandemic.
Honourable Union Minister for Health and Family
Welfare, Science and Technology, and Earth Sciences,
Dr. Harsh Vardhaninaugurated the campaign at
Nirman Bhawan, New Delhi. The initiative is launched as
PNB’s Corporate Social Responsibility (CSR) campaign
and it will entail providing COVID-19 related prevention
materials like masks, sanitizers, etc. across India in 662
districts.

The Honourable Union Minister, Dr. Harsh

Vardhan said, “This is a great initiative, taken by
Punjab National Bank, to distribute the COVID-19
precautionary kits nation-wide. PNB has a distinguished
history of undertaking such an act of kindness. This
initiative of PNB will inspire public and private
institutions to come forward and help the citizens of our
country, not only to fight the pandemic but also to come
out healthy and strong.
On behalf of the Ministry of Health, I would like to thank
PNB and its officials for supporting and fighting this
pandemic together.”

46
Commenting on PNB’s biggest CSR effort so far, Shri CH
SS Malikarjuna Rao, Managing Director and
Chief Executive Officer, said, “The Honourable
Minister, Dr. Harsh Vardhan is in forefront of the
fight against COVID-19 and we are certain that the
country will soon come out of this pandemic under his
capable leadership. We are highly obliged that he took his
valuable time for the Bank’s noble cause. On this
occasion, we also assure him that Punjab National Bank
is committed to play its role in this difficult time.” ENDS.

46
 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.

46
 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

46
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)

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 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,
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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
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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.

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 Conclusion

Despite challenges on the economy front, there was visible

progress in the key parameters of core profitability, asset
quality and Capital. Bank’s prime goal will be to strengthen the
balance sheet, which will create a foundation for sustainable
profitability going ahead. Bank will continue its focus on asset
quality management and capital improvement in the post-
pandemic environment. Apart from continuing the
accelerated momentum in recovery, product leadership,
technology, efficiency, and small ticket lending, Bank will also
endeavour to increase its non-interest income sources.
Product & processes will be made more customer friendly to
ensure a consistent and seamless customer experience across
all channels. Going forward, Bank’s endeavour will be to
enhance value through multi-pronged digital transformation
strategy and greater focus on better underwriting prudence
and risk controls. Bank always strives to maintain its
leadership position in order to maximize its stakeholders
value.

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 REFRENCES

 www.wikipidia.com
 www.pnb.com

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