essential concepts that are connected to the services that are

provided by the bank.

The analysis provides assistance in identifying any potential flaws

in the services as well as the preventative measures that have
been done. The Branch Managers' comments will assist
management make improvements in the targeted area if they are
taken into consideration.

The management will be able to decide on a marketing plan and

find out where the development of the product is lacking with the
assistance of this project. Because of this project, the management
will be able to start the creation of new products.

2.4 Type of research and research Design

The titles of the three different sorts of research designs are quite
evocative of their respective functions. Discovering new ideas and
gaining new perspectives is the purpose of exploratory research. In
most cases, the goal of descriptive research is to provide a
description of a population with regard to key aspects of the
population. The purpose of causal research is to determine the
factors that have a cause-and-effect connection with one another.
Experiments are the method of choice in causal research designs
because they can most accurately establish a link between a
variable and an outcome.

Exploratory Research
30
 Design in which the primary focus is on the acquisition of new
concepts and points of view.

Descriptive Research

A method of doing research in which the primary focus is placed on

establishing either the regularity with which something takes place
or the degree to which two variables are correlated with one
another.

Causal Research

A method of doing research in which the primary focus is on

establishing a connection between causes and their subsequent
effects.

2.5 Data Collection Methods

When it comes to data collection, subjective analysts regularly depend

on the taking after four strategies:

By taking portion within the action, by and by seeing, conducting in-

depth interviews, and doing in-depth investigations of records and
fabric culture.

The examination is for the most part on these aspects, which are the
basic components of the slim down. In expansion to these approaches,
there are a number of auxiliary and particular ones for collecting data.
This chapter offers a brief survey of the most and auxiliary approaches
that ought to be taken into thought whereas arranging out a subjective
investigate extend.

This conversation is in no way planning to supplant the numerous

31
other incredible and broad sources on information collecting (we allude
to a few at the conclusion of this chapter). Its goal is to coordinate the
individual who is composing the proposition through the method of
expressing the methods of choice for his ponder and laying out for the
peruser how the information will edify the researcher's inquire about
questions. All things considered, how the analyst extreme to apply
these strategies depends on a assortment of variables to be taken
under consideration.

2.6 Restrictions of Consider

As already said, a preparatory study was carried out at the bank in
arrange to decide the degree to which clients are substance with the
merchandise and administrations advertised by Punjab National Bank,
Delhi. The data was accumulated within the Delhi/National Capital
Locale. The scope of this inquire about was as it were conducted in
Delhi and the National Capital Locale. It's conceivable that this fair
applies to the northern portion of India.

All through the course of the inquire about, the taking after
confinements were distinguished as a problem:

• On the off chance that the number of people who are reaching to be
overviewed is on the littler side, at that point utilizing this strategy will
not be satisfactory since it'll not be able to draw consistent conclusions
on the level of client fulfillment that as of now exists. On the off chance
that this is often the case, at that point utilizing this strategy will not be
worthy.

• It is conceivable that diverse individuals will come to diverse

conclusions about the meaning of the data depending on how well they
understand the item qualities and administrations that are provided by
the bank. This is often something that's conceivable since distinctive
individuals have distinctive levels of item information and benefit
information. This is often something that's attainable due to the truth
that different people have changing degrees of item ability and benefit
information. This is often something that's something that's something
that is something that's a plausibility due to the fact that distinctive
32
individuals will have assorted degrees of information almost the items
and services that are given by the bank. Since different people have
varying levels of comprehension, this is often something that have to
be be seen as something that's open to the conceivable outcomes. As
a direct result of this, this is something which will be considered a
plausibility.

• There's even the most minor plausibility that the methodology might
be changed in any way so that it seem take into consideration the
modern circumstances. There's not indeed a remote plausibility. It is
conceivable that the results will not be the same as anticipated within
the case that the data that was given was either lacking or basically
fragmented.

• Since not all of the customers make significant utilize of all of the
accessible money related items and administrations, it is troublesome
to draw unequivocal conclusions from the study. Usually one of the
reasons why it is troublesome to draw conclusions from overviews.
Since of this, it isn't doable to draw any wide conclusions from the
discoveries of the investigate. Because of this, it is more difficult to
draw common inferences from the results of the investigate. Beneath
these circumstances, coming to any sort of conclusion is past the
scope of what is even somewhat conceivable. Usually only one of the
many reasons why it may be difficult to determine important
conclusions from survey information, which is one of the many reasons
why this is one of those reasons. There are a expansive number of
other components to consider as well.

• In arrange to discover whether or not the information that has been

provided is genuine, one must to begin with go past a number of
troublesome deterrents. This may be a time-consuming and difficult
procedure.

33
 CHAPTER -3

CONCEPTUAL DISCUSSION

3.1 Review of Literature

Banking Industry At a Glance

The banking sector in India, which is controlled by the Banking

Regulation Act of India, 1949, may be broken down into two
primary groups: scheduled banks and non-scheduled banks. Both
of these groups fall under the purview of the Indian government.
Commercial banks and co-operative banks are both included in the
category of scheduled banks. In terms of who owns them,
commercial banks may be further subdivided into the following
categories: nationalised banks, the State Bank of India and its
group banks, regional rural banks, and private sector banks (both
old and new domestic and international). These financial
institutions operate more than 67,000 branches all throughout the
United States.

The transition from a "Class banking" system to a "Mass banking"

system was brought about as a consequence of the first wave of
financial reforms, which were implemented in 1969 and led to the
nationalisation of 14 major banks. This, in turn, led to a substantial
increase in the geographical coverage offered by banks all over the
world. Each bank was required to provide a certain proportion of its

34
loan portfolio to "priority sectors," sometimes known as high-
demand or growth industries. Additionally, throughout the 1970s,
the industrial industry expanded in shielded environments, with the
financial sector serving as an essential source of funding. As part
of the subsequent round of changes, six other commercial banks
were taken under government control in the year 1980. Since that
time, the number of commercial banks that are scheduled has
expanded by a factor of four, while the number of bank branches
has increased by a factor of eight.

After the second phase of financial sector reforms and liberalisation

of the sector in the early nineties, the Public Sector Banks (PSB)
found it extremely difficult to compete with the new private sector
banks and the foreign banks. This was due to the fact that the
second phase of financial sector reforms included liberalisation of
the sector. After the rules allowing for their establishment were
published in January 1993, the new private sector banks made
their debut for the very first time. At the moment, there are eight
brand-new banks operating in the private sector. As a result of their
late start, these banks have access to cutting-edge technology,
which enables them to reduce the amount of money they spend on
staff while simultaneously improving the quality of their services.

In the year 2000, the State Bank of India (SBI) and its seven
partners accounted for a proportion of deposits equal to 25 percent
of the total and a share of credit equal to 28.1 percent of the total.
35
During the same time period, the 20 nationalised banks were
responsible for 53.2% of the deposits and 47.5% of the loans.
During the year 2000, the proportion of deposits made by regional
rural banks, other scheduled commercial banks, and foreign banks
accounted for 5.7 percent, 3.9 percent, and 12.2 percent
respectively, while the proportion of credit made by these three
types of banks was 8.41 percent, 3.14 percent, and 12.85 percent
respectively.

The sector is now going through a period of transformation. PSBs,

which are the mainstay of the Indian banking system, are currently
in the process of shedding their flab in terms of excessive
manpower, excessive non-performing assets (Npas), and
excessive governmental equity, while on the other hand, private
sector banks are consolidating themselves through mergers and
acquisitions. Both of these processes are taking place
simultaneously.

Private sector banks were the first to offer internet banking, phone
banking, anywhere banking, mobile banking, debit cards,
Automatic Teller Machines (ATMs), and a variety of other services
and successfully integrated them into the mainstream banking
arena, whereas public sector banks (PSBs) are still trying to deal
with dissatisfied employees in the wake of successful voluntary
retirement savings plans (VRS).

Foreign banks, including both new and the existing ones, have
36
been permitted to open up to 12 branches a year with effect from
1998-99, as opposed to the earlier stipulation of 8 branches, as a
result of India's commitment to the W To agreement in respect to
the services sector. This is because of India's commitment to the
W To agreement in respect to the services sector.

In the meanwhile, the recession in the economy and the business

sector has caused an increase in the number of banks that are
concentrating on the retail market. A good number of them are also
venturing into the uncharted territories of the insurance industry.
The insurance industry is ripe for competition, and the ideal
candidates to participate are financial institutions like banks due to
their extraordinary reach and consistent contact with individual
investors. It is now possible for banks in India to offer fee-based
insurance services without taking on any of the associated risks, to
invest in an insurance company with the intention of supporting it in
terms of infrastructure and services, and to establish a separate
joint-venture insurance company in which they will take on those
risks.

3.2 Current Issues

37
INTRODUCTION OF ATM

An automated teller machine, often known as an ATM, is a

computerised telecommunications equipment that enables clients
of a financial institution to conduct financial transactions in a public
setting without the assistance of a human bank clerk or teller.
Almost all of today's automated teller machines require the
customer to identify themselves by inserting either a plastic ATM
card with a magnetic stripe or a plastic smartcard with a chip.
These cards contain a unique card number as well as some form of
security information, such as an expiration date or a card
verification code (CVC) (CVV). The customer's entry of a personal
identification number serves as the basis for the system's security
(PIN). They are sometimes referred to in an inaccurate manner as
"ATM machines," which is a technically redundant phrase.

Customers have access to their bank accounts when they use an

ATM, allowing them to make cash withdrawals (or credit card cash
advances), check their account balances, and purchase mobile cell
38
phone prepaid credit. Customers may also check their account
balances. There are a number of colloquial names for automated
teller machines (ATMs), including money machine, bank machine,
cash machine, hole-in-the-wall, cashpoint, Bancomat (in a number
of countries in Europe and Russia), Multibanco (after a registered
trade mark in Portugal), Any Time Money, and other names (in
India). 1973 saw the beginning of widespread deployment of
automated teller machines in the UK; the IBM 2984 was developed
in response to a request from Lloyds Bank. Cashpoint is still a
registered brand of Lloyds TSB in the United Kingdom. The first
real Cashpoint was the 2984 CIT (Cash Issuing Terminal), which
performed a function that is comparable to that of machines used
today. Everyone participated online and was given a varied sum,
which was then withdrawn from the account straight away. A single
bank in the United States received a limited quantity of 2984s. The
IBM 3624 and 473x series, the Diebold 10xx and TABS 9000
series, and the NCR 5xxx series are some notable examples of
older versions of automated teller machines.

The Punjab National Bank is in the process of creating a large

network of ATMs in partnership with individuals and organisations
that are willing to provide prominent space, install ATMs, take
active interest in increasing the number of transactions that take
place on these ATMs, and also take care of ATM maintenance. In
addition to the development, upkeep, and security of the site, these

39
partners will also take care of the ATM maintenance. The paradigm
of Revenue Sharing serves as the foundation for this plan. The
company that is installing ATMs, which will be referred to in the
following paragraphs as the "Participant," is entitled to income on a
per-transaction basis, as specified in the REVENUE clause.

CURRENT SCENARIO

Even though reaching customers in rural India is still a struggle for

private sector and international banks in 2008, the banking industry
in India as a whole is regarded to be quite mature in terms of
supply, product variety, and reach. When compared to other banks
in similar economies in the area, Indian banks are regarded as
having clean, solid, and transparent balance sheets. This is true
even in terms of the quality of their assets and the level of capital
that they have available. The Reserve Bank of India is an
organisation that operates independently, with little interference
from the Indian government. This has, for the most part, been the
case, despite the fact that the Bank of India's strategy regarding
the Indian Rupee is to control volatility without any declared
exchange rate.

The Reserve Bank of India recently (in March 2007) granted

permission for Warburg Pincus to grow its shareholding in Kotak
Mahindra Bank (a private sector bank) to 10 percent. Since the
Reserve Bank of India (RBI) announced norms in 2005 requiring
that any stake exceeding 5 percent in private sector banks would
40
need to be vetted by them, this is the first time an investor has
been given permission to hold more than 5 percent in a private
sector bank. These norms have been in place ever since the RBI
announced them.

There are currently 88 scheduled commercial banks (SCBs) in

India. Of these, there are 28 public sector banks (banks in which
the government of India owns a stake), 29 private banks (banks in
which the government does not own a stake; these banks may be
publicly listed and traded on stock exchanges), and 31 banks that
are based outside of India. They operate a total of over 53,000
branches and 17,000 automated teller machines around the
country. According to a study published by a rating agency called
ICRA Limited, public sector banks control more than 75 percent of
the total assets held by the banking industry as a whole, together
with private banks and banks based in other countries.

3.3 History and Development of Company and Industry

One of the firms that is predicted to emerge as a competitor to the

world's premier blue chip corporations is Punjab National Bank,
which has a history of 112 years of strong and conservative
banking. Punjab National Bank is one of 300 worldwide companies
and seven Indian companies. The major magazine in London, "The
Banker," has ranked PNB at the 248th position among the top
1000 international banks. However, the bank stands at the 1308th
position among Forbe's Worldwide 2000 list of global giants and
41
fast rising corporations.

At the same time, the bank has been mindful of its social duties by
providing funding for agriculture and activities related to agriculture
as well as for small scale companies (SSI). In recognition of the
significance of small-scale enterprises, the bank has developed 31
specialised branches that are solely dedicated to providing funding
for such firms. It is able to manage transactions on a global scale
more effectively because to the robust correspondent banking
relationships that it maintains with over 200 of the world's most
prominent international institutions. In addition, the bank has
Rupee Drawing Arrangements with fifteen different exchange
businesses in the Gulf and one company in Singapore. The bank is
a participant in the SWIFT network, and its computer-based
terminal in Mumbai allows communication between more than 150
of its locations worldwide. The bank is able to provide effective
foreign exchange dealing operations in India because to its well-
trained dealers and state-of-the-art dealing rooms.

The bank has been concentrating its efforts on extending its

activities outside of India, and it has pinpointed many rising
markets that provide significant opportunities for corporate
expansion. The bank has established representative offices in the
cities of Almaty (Kazakhstan), Shanghai (China), and London
(United Kingdom). In addition, the bank has just established a fully
operational branch in the capital city of Afghanistan, Kabul.
42
Heritage

Punjab National Bank (PNB) has the distinction of being the first
Indian bank to have been created completely with Indian capital.
PNB was founded in 1895 in Lahore, which was then a part of India
that had not yet been separated. In July of 1969, the bank, along
with 13 other banks, was taken over by the government. The bank
had humble beginnings, but it has since grown in both size and
prestige to become one of the most important financial institutions
in India at the current time.

 A bank that is competently managed and has a history of

financial success spanning over 110 years.
 The most extensive branch network in India, with 4525
locations and 447 extension counters located in various cities
and towns throughout the nation.
 The broad Indo-Gangetic belt as well as the urban hubs are
included in the strategic business area.
 According to Bankers Almanac, London, this financial
institution is the 244th largest bank in the world.

43
  Solid banking links through correspondent banking with more
than 217 of the world's international financial institutions.
 PNB serves as the primary depository for more than fifty of
the world's most prestigious financial institutions' rupee
accounts.
 dealing rooms that are well-equipped, as well as twenty
various foreign currency accounts that are kept in important
locations all over the world.
 Rupee drawing arrangements with M/s UAE Exchange
Center in the United Arab Emirates, M/s Al Fardan Exchange
Company in Doha, Qatar, M/s Bahrain Exchange Company
in Kuwait, M/s Bahrain Finance Company in Bahrain, M/s
Thomas Cook Al Rostamani Exchange Company in Dubai,
United Arab Emirates, and M/s Musandam Exchange in
Ruwi, Sultanate of Oman.

VARIOUS RECOGNITIONS RECEIVED BY PNB

According to The Economic Times, Punjab National Bank is the

38th best company out of the top 500 businesses in India. The
efforts that PNB has made to provide the greatest customer service
have helped it gain the ninth spot among India's Most Trusted top
50 service companies, according to a survey conducted by
Economic Times and A.C. Nielsen.

The famous worldwide newspaper "The Banker" in London placed

Punjab National Bank at the 368th position out of the top 1000
44
global banks. This ranking places Punjab National Bank among the
top 1000 global banks.

The Punjab National Bank of India has relationships with more than
200 of the world's most prominent foreign banks. Rupee Drawing
Arrangements have been set up by PNB India with 16 different
exchange businesses in the UAE, as well as one in Singapore.

The bank is able to provide effective foreign exchange dealing

operations in India because to its high-tech dealing rooms and its
highly-trained dealers.

At the same time, the bank has been mindful of its social duties by
providing funding for agriculture and activities related to agriculture
as well as for small-scale companies (SSI). Because of the
significance of small-scale enterprises, the bank has built 31
specialised branches that are only dedicated to providing funding
for such firms.

Awards

45
3.4 New Development of Company and Industry

PNB INTRODUCES ADD-ON DEBIT CARD :-

You should let your loved ones in on the benefits that come with
having a PNB Debit card. Just give them an add-on card as a
present.

PNB Customers who shop at CBS locations may receive two

additional cards in addition to their primary Debit card. It is not
required that the recipient of the card already have a PNB account
in order for you to give them the card as a present.

It is possible to have an add-on card issued in the name of a

spouse, dependent parents, and dependent children who are less
than 18 years old.

Add-on cardholders' purchases will automatically be deducted from

the main cardholder's account. The primary cardholder is
46
responsible for any purchases made by add-on cardholders and
will be held liable for any and all transactions made by add-on
cardholders.

47
Charges related to Issue of ATM/Debit Cards

Sr. No. Particulars of Charges Charges

ATM/ Debit Card issue
1 Waived
charges
ATM/ Debit Card annual fee
2 Rs.100/-
(after first year)
Charges for issue of Add on
3 Rs.50/-
card
Fees associated with the
issuance of a replacement PIN
(However, if the card has not
been used even once owing to
4 Rs.25/-
a mistake in the (printing of
PIN, issue of duplicate PIN
shall be free)
Fees associated with the
production of duplicate ATM or
debit cards as well as the
5 Rs.100/-
replacement of lost or stolen
ATM or debit cards
Provision of an image of the
cardholder on the ATM and
6 Rs.25/-
debit card issued

*NOTE: In the event that a customer does not wish to use the
48
debit card (after it has been issued) owing to the non-
acceptance of charges and has the card cancelled, there will
be no costs charged on the client.

PNB DEBIT CARD :- Customers may get both a product and a

service in the form of the PNB Debit Card via the usage of the
internet as the primary distribution channel. It is possible to make
purchases with it in India as well as anywhere else around the
world at any ATM that is enabled for MasterCard transactions, at
any retail establishment that has a partnership with MasterCard
and that is equipped with a POS machine, and additionally over the
internet for any transactions related to ecommerce. The name of
the Master brand as well as its emblem are displayed on the front
of the card.

49
PNB-ONLINE

Another advantage of the Punjab National Bank of India's

participation in the SWIFT network is that it enables more than 150
of its branches to be linked to terminals in the Mumbai region. This
is one of the many benefits that the bank receives as a result of its
presence in the network. As a result of the bank's involvement in
the network, it has access to a number of benefits, one of which
being this specific advantage. Because of this feature, it is strongly
recommended that users take use of financial services that may be
accessed "Any Time, Anywhere," regardless of where the user
happens to be physically located.

Customers of the PNB who conduct business on a personal level,

in addition to customers who conduct business on a commercial
level, have access to the services of Internet Banking that are
offered by the PNB. Customers who conduct business on a
commercial level have access to Internet Banking as well. The user
may have access to the financial services provided by the
company at any time of the day or night, seven days a week, and
365 days a year, directly from their own personal computer. This
accessibility is available around the clock. Users always have
access to their accounts and total control over what transpires
inside them, regardless of where they are or when they check in.
This is true regardless of when users check in or when they access
their accounts. This is the case regardless of whether or not they
50