Mani Kansal 065

Madhav Mishra 093

Prashant Pal 105

Saumya Chakravorty 118

Shalina Bhatia 119

Different scope of activities of the banking sector Almost complete emphasis on service activities Public sector bank; more constrained in its functioning, compared to private sector competitors Has a unique place amongst Indian banks with an innovative and dynamic environment and work culture to study After 2000, PNB underwent drastic changes in functioning and has been forced to adapt itself drastically to these changes Benchmark for banks

Investment Money Money

"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"

"Banking for the unbanked"

One of the big four banks of India

Second largest government-owned commercial bank

5000 branches across 764 cities

Serves 37 million customers

Awarded Niryat Bandhu Bronze Trophy SCOPE Meritorious Award Asia Best Employer award Expansion to Australia, Fiji, Indonesia and Canada Financial Inclusion

Near Bus Stand Area : 3500 square feet Rural branch Branch Manager: Mr. Krishna Das

Savings Accounts, including salary accounts Current Accounts with overdraft facility Recurring Deposits Term Deposits Credit Accounts Fixed Deposits Loan Accounts

Range of times
05
5 10 10 15

Number of customers
3
14 28

15 20
20 25 25 30 30 and above

29
17 7 2

Total Source data collected on 23rd February 2011, Wednesday

100

30

25
20 No. of Customers 15 10 5 0 05 5 10 10 15 15 20 20 25 25 30 30 and above

Range of Times (minutes)

Average Service Time = 14.28571 minutes

No. Of customers

Average Wait time

2004

Time

2011

 Responsible for maintenance and upkeep of

one ATM machine inside the bank premise Daily transaction amounts up to 10 lakhs Maintenance outsourced
Increased the cost but, Employee satisfaction increased

Demand draft
Bank receives 8-10 applications daily Goes up to 15-18 during April-May: students demand Generally takes 30 min to process 1 DD may vary according to mode of payment

Customers

Government

Suppliers

Competitors

Punjab National Bank

Community

Employees

Stockholders

Media

Public
Suppliers Employees

Customers Businesses Media

RBI Equity shareholders Clerks Managers Union Other banks Money lenders Mutual Funds

Competitors

Stake Power Economic

Formal

Economic

Political

Competing banks

Customers, Employees

RBI

Equity

Banking association

Employee holder

Equity Holder

Political/ Influencer

Employee Union Employee Union

Ministry of finance

Dormant Stakeholder Related Entities

Dangerous Stakeholder Local Lenders

Demanding Stakeholder Borrowers

Dominant Stakeholder Borrowers Definitive Stakeholder PNB

Dependant Stakeholder Local Lenders Discretionary Stakeholder Other Banks

Branch Manager

Agricultural Officer - 1

Junior Officer - 2

Teller - 5

Peon - 2

Lack of cleanliness of the branch specific areas, furniture Standard issue furniture Did not meet ergonomic criteria

Due to VRS Earlier, 16 employees worked full time Now 10 employees Higher workloads per employee Consequently, higher amounts of stress

Macro level problem Branch per se cannot change

Bank job lost charm

+
Inadequate hiring

+
Work Load

+ Old employee retrenched Productivity

Home Loans

Individual loan - caters to NRIs also, Finances all possible expenses - construction of houses, purchase flats etc. For salaried people, regular source of income. Portfolio of customized services - vehicle loan, consumer loan etc.

Personal Loan

Property Loans

Loan is for commercial and residential property

Educational Loan

Education loan under the name Vidyalakshyapurti Fee towards college, hostel fee etc. No securities for a loan amount < 7.5 lakhs Targeted towards industry persons Purchase of new equipment, new office, equipment up gradation etc.

Professional Loan

Line of Visibility

Chat with borrowers

Form and document submission

Verification of documents and Valuation Terms and condition generation

Approval by higher offices

Loan sanctioning

Failure: Client not given proper attention in the interview stage

Poka-Yoke: Every client is given separate attention. Appointments should be fixed with clients and proper information should be disbursed to the clients for the wait time and the information needed

Failure: The forms and documents are not properly verified

Poka-Yoke: A checklist is maintained on the computer system and the verified against the checklist

Failure: The terms and conditions calculated by the software is wrong because of computer bug
Poka-Yoke: Customer analysis can be prepared using MS Excel or any such software.

Failure: Document verification by advocate and valuation by valuer is incorrect

Poka-Yoke: The bank should have a permanent employee with sufficient knowledge to review the validity of valuation and document verification

Failure: The customer may opt for a loan scheme not befitting him
Poka-Yoke: Give the customer ample time to understand the various kinds of loans available. Number of managers must also be increased.

 Continuous process Advancing own practices Learning from best practices

P e r f o r m a n c e

SBI ATMs

From players in same

or different industries

GAP

PNB ATMs

Time
Aim is to reduce this gap
Comparison of PNB and SBI ATMs

Internal Benchmarking
Comparison among similar operations or processes within firms own organization Staff ratio in Accounts Area and in Customer dealing Area of PNB Competitive Benchmarking Comparison between organizations performance and its best direct competitors Number of customers dealt on Saturdays at PNB and SBI Functional Benchmarking Performance comparisons with the best functional areas, regardless of industry Average monthly electricity consumption at PNB Kunnamangalam and Chocotree, Calicut

Plan

Adapt

Collect

Analyse

Increase customer satisfaction increase their ease of service

Plan

Increase customer satisfaction Increase ease of service

Collect

Information of customer needs Competitors Practices

Existing situation Suggest recommendations Implement changes Continue the cycle

Analyze

Adapt

Voice Of Customer

(1) Check (Evaluation) Collect and access customer opinion/requirements/feedback

(4) Do (Execute)

(2) Act (Improve)

Offer new products and services that respond to customer needs

Management Review

(3) Plan (Product and service planning)

Create solutions based on customer needs

For local branch

Fail-safing of all processes Emphasize on employee training
Reduce errors and cost of errors

For PNB
Use CBS extensively for Cheque clearing process Widen customer reach with more ATMs Increase manpower
Younger workforce, computer literate

Poka Yokes of loan process should be implemented