Minor Project Report

On

Punjab National Bank

By:
Jasmine kaur

04521201709

Maharaja Surajmal Institute

Batch : 2009-2012
 Acknowledgement

It is my pleasure to express my sense of gratitude to ‘PUNJAB

NATIONAL BANK’.

I wish to express my deepest appreciation to my guide Dr. Sunaiana

who continuously motivated and directed me at all stages of my project.
I also express my gratitude to all those who have helped me in doing my
project work. I am very obliged to my coordinator who gave me perfect
support, sincere devotion during the course of project preparation.

Jasmine Kaur
BBA (gen)

3rd Semester
 CERTIFICATE

This is to certify that Jasmine Kaur from Maharaja

Surajmal Institute has successfully completed the project
on “PUNJAB NATIONAL BANK”.

To the best of my knowledge and belief, she bears a good

behavior and character in the college.

I wish her Success in life.

Dr. Sunaina

(Project Guide)
Table of Content
 Acknowledgement
 Certificate
 Table of content
 Executive summary
 Analysis of questionnaires
 Swot analysis
 Conclusions and Suggestions

 Chapter-1 Introduction

• Overview
• Importance of banks in financial sector
Reserve bank of India
• Commercial Banks
• Cooperative Societies
• Other Institutions

Chapter-2 Punjab National bank

• Overview
• Financial Performance
• Achievement

 Chapter-3 Risk Management

•Introduction
• Types of risk
• Credit risk Vs Market risk

Chapter-4 Operational Risk

• Details
• Factors affecting risk
• Management
• Broad areas
• Functions

Chapter-5 Evaluation of management and control techniques

 • Nature of controls
• Examples

Chapter-6 Models & Approaches

• Scalar
• Statistical

Chapter-7 Management Information for Op Risk Committees

• Various committees

Chapter-8 Capital calculations

• Basic Indicator approach

• Standardized approach
• Advance Measurement approach

Chapter-9 Mitigation Operational risk

Chapter-10 Challenges in operational risk management

Chapter-11 Research Methodology

Appendixes

 Bibliography
Executive Summary
A study is been done on Punjab National Bank. This a Minor Project Report
in which the risk management, its types, its products & its achievements are
been discussed.
  Chapter 1
It includes the overview of banking in India its introduction, its
importance, its types, management and its products.

 Chapter 2
In this chapter study on Punjab National Bank, its history, its sales &
its value of assets are concern.

 Chapter 3
In this chapter, we study risk management in details.

 Chapter 4
In it, operational risk is being studied, factor affecting it, its
management, broad areas are studied.

 Chapter 5
In this part of project, the various evaluation & control method &
other examples are given.

 Chapter 6
It includes various models & approaches.

 Chapter 7
It consists of various committees that provide management information.

 Chapter 8
It defines how capital is being calculated by using various approaches.

 Chapter 9
It defines mitigation op risk.

 Chapter 10
It includes challenges comes in the way of operational risk management.
Chapter 1:

Introduction

1Overview of Banking in India

Importance of Banks in financial sector

Financial institutions in a community can form the core of economic development.
Although they shouldn't be expected to finance revitalization programs single handedly,
they should be considered as essential to success. Yet banks and other local financial
institutions have largely ignored local improvement efforts in recent decades. In an
increasingly focused effort to satisfy their stockholders, they have looked for
investments, which provide the highest rate of return. As a result, their investment money
has gone elsewhere, to other regions of the country or even to other parts of the world. In
doing so, often they have ignored their responsibilities to the local community in which
they are based, and from which comes most of their business. Local banks need to be
reacquainted with their need to be locally involved. Downtown organizations should
include local bankers, and downtown leaders should feel comfortable including them as
integral members of revitalization programs.

2 Reserve Bank of India

India’s central bank – the RBI – was established on 1st April 1935 and was nationalized
on 1st January 1949. Reserve bank of India occupies a special and a distinctive place in
the Indian Banking industry. It is the monetary authority and central bank of the country
and has been assigned wide powers and responsibilities.
The reserve bank of India Act says “ to regulate the issue of bank notes and for keeping
of reserves with a view to securing monetary stability in India and generally to operate
the currency and credit system of the country to its advantage .

FUNCTIONS OF RESERVE BANK OF INDIA

Some of its main objectives are regulating the issue of bank notes , managing India’s
foreign exchange reserves , operating India’s currency and credit system with a view to
securing monetary stability and developing India’s financial structure in line with
national socio-economic objectives and policies.
The functions of Reserve Bank of India are as follows:

1. To issue bank notes

.
2. To transact Government Business in India.

3. To manage public debt.

4. To undertake Transactions in foreign Exchange and to act as Controller of

Foreign exchange.
5. To keep cash reserves of scheduled Banks.

6. To grant loans to scheduled commercial banks and cooperative banks.

7. To act as controller of credit.

8. To grant advances to government.

It has three Parts:-

1. Commercial Banks

2. Cooperative Societies

3. Other Institutions

1. Commercial banks

It includes: -

(a) Public Sector Banks

• Public Sector
 • State bank of India
• Nationalized Banks
• Regional Rural Banks
• 14 major banks nationalized on 19 July 1969
• 6 Banks nationalized on 15 April 1980

(b)Private Sector Banks

• Foreign Banks
• Other Indian Banks
• Non Scheduled Banks
• Foreign Banks in India
• Private Banks
• Local area Banks

2. Cooperative Societies

• Cooperative Societies
• State Cooperative
• State Land Development
• Central Cooperative
• Primary Agriculture Credit societies
• Primary urban credit societies
• Central land development bank
• PLDB’s
3. Other institutions
• Other institutions
• Government
• Public Sector
• Private Sector
• N.S.C
• LIC, UTI, IDBI
• Post office Saving Bank
• E.P.F
• ICICI, IFCI
• Chits
• Nidhis
• Corporate bodies
R.B.I. was originally constituted as a Shareholder’s Bank with a share
capital of Rs 5 crores divided into 5 lakhs fully paid shares of Rs 100 each.
Central Board of directors controls the affairs of the bank.

Chapter 2:

PUNJAB NATIONAL BANK

OVERVIEW
Punjab National Bank (PNB), established in 1895 in Lahore, then a part of
undivided India, is the second largest public sector commercial bank in India
with about 4500 branches and offices throughout the country. It has second
largest network in India. The Government of India nationalized the bank,
along with 13 other major commercial banks of India, on July 19, 1969.

The sales of Punjab National Bank are $2.32 billion and the profits are $ .28
billion.

The value of assets is equal to $24.12 billion and the market value is $2.79
billion.

Chapter 3

RISK

MANAGEMENT
RISK : - The term risk has a variety of meanings in business and
everyday life. At its most general level, risk is used to describe any situation
where there is uncertainty about what outcome will occur. Life is very risky.
Even the short-term future is often highly uncertain. In probability and
statistics, financial management, and investment management, risk is often
used in a more specific sense to indicate possible variability in outcomes
around some expected value.

The degree of probability of loss (Hazard, danger, chance of loss or injury.)

Risk in banks
In banks three types of risks are there:-

• Credit risk
• Market risk
• Operational risk

1. Credit risk: - Credit risk is a risk of economic loss from the failure of a
counter party to fulfill its contractual obligations. Its effect is measured by
the cost of replacing cash flows if the other party defaults. Credit risks
requires constructing the distribution of default probabilities, of loss given
default, and of credit exposures, all of which contribute to credit losses and
should be measured in a portfolio context. In comparison, the measurement
of market risk using VAR is a simple affair.

For most institutions, market risks plays significant role as compared to

credit risk. The amount of risk based capital for the banking system reserved
for credit risk is vastly greater than that for market risk. The history of
financial institutions has also shown that the biggest banking failures were
due to credit risk. Credit risk involves the possibility of non-payments, either
on a future obligation or during a transaction.

The evolution of credit risk management tools has gone through these steps:-

• Notional amounts
 • Risk weighted amounts
• External/internal credit ratings
• Internal portfolio credit models

Initially, risk was measured by the total notional amount. A multiplier, say
8%, was applied to this amount to establish the amount of required capital to
hold as a reserve against credit risk.

The problem with this approach is that it ignores variations in the probability
of default. In 1988, the Basel committee instituted a very rough
categorization of credit risk by risk class, providing risk weights to scale
each notional amount. This was the first attempt to force banks to carry
enough capital in relation to the risks they were taking.

These risk weights proved to be simplistic, however, creating incentives for

banks to alter their portfolio in order to maximize their shareholder returns
subject to the Basel capital requirements. This had the perverse effect of
creating more risk into the balance sheets of commercial banks, which was
certainly not the intended purpose of the 1988 rules. As an example, there
was no differentiation between AAA-rated and C-rated corporate credits.
Since loans to C-credits are more profitable than those to AAA-credits,
given the same amount of regulatory capital, the banking sector responded
by shifting its loan mix toward lower-rated credits.

This led to 2001 proposal by the Basel committee to allow banks to use their
own internal or external credit ratings. These credit ratings provide a better
representation of credit risk, where better is defined as more in line with
economic measures.

2. Market risk
Market risk is the risk of fluctuations in portfolio values because of
movements in the level or volatility of market prices. The first step in the
measurement of market risk is the identification of the key drivers of risk.
These include fixed income, equity currency, and commodity risks. Market
risk is usually measured separately. Market risk also reflects credit risk – for
example some of the price movement may be due to movements in risk-free
interest rates, which is pure market risk. The remainder will reflect the
market’s changing perception of the likelihood of default. Thus, for traded
assets, there is no clear – cut delineation of market and credit risk. Some
arbitrage classification must take place.

Credit risk vs. Market risk

1. Source of risk: - In market risk the source of risk is market risk only
but in credit risk the source of risk are default risk, recovery risk, and
market risk.
2. Distributions: - In market risk distribution is mainly symmetric but in
credit risk the distribution is skewed to the left.
3. Time horizon :- In market risk the time horizon is short term
(in days) but in credit risk the time horizon is long term(in years)
4. Legal issues: - In market risk legal issues are not applicable and in
credit risk legal issues are very important.

3.Operational risk :-
The Basel II committee defines operational risk as ‘the risk of direct or
indirect loss resulting from inadequate or failed internal processes, people
and systems or from external events.’ By means of this definition legal risks
are included, whereas strategic and reputation risk are not considered. Due to
this less specific definition of operational risks the consultative document is
exposed to severe criticism. Only a more precise specification, that has still
to be developed, and an accepted delimitation (standardization) of
operational risk as generally as possible will provide for an accurate
recordation and an evaluation of these risks.

Chapter 4
OPERATIONAL RISK MANAGEMENT
  Details
Operational risk has assumed greater importance because:

1. The use of highly automated technology has the potential, if not properly
controlled, to transform risks from manual processing errors to system
failure risks, as greater reliance is placed on globally integrated systems;

2. Growth of e-commerce brings with it potential risks [e.g., external fraud

and system security issues] that are not yet fully understood;

3. Large-scale mergers, de-mergers and consolidations test the viability of

new or newly integrated systems and have resulted in some noteworthy
problems;

4. The emergence of banks acting as very large-volume service providers

creates the need for continual maintenance of high-grade internal controls
and back-up systems;

5. Banks may engage in risk mitigation techniques [e.g., collateral, credit

derivatives and asset securitization to optimize their exposure to market risk
and credit risk, which in turn may produce other forms of risk.

 Factors affecting banking industry

The following factors contribute to increased Operational risk in the banking

industry globally:

• Competitive pressures

• Expense and headcount reduction

• Centralization of operations sites

• Sales force incentives

• Product complexity

• Pace of change, especially product and technology

• Organized crime

• Public and community ethics

• Technology dependence

• Consumerism

 Management of Operational Risk:-

The Management shall decide whether to:

• Transfer risk to a third party (e.g., outsourcing, insurance)

• Avoid risk altogether by changing the nature of the business (e.g.,

withdrawing

Products, avoiding jurisdictions) or,

• Reducing risk (e.g., limiting growth/diversification)

The Management determines the remaining level of risks, which is accepted
and dealt with by establishing adequate control techniques. Typical internal
control techniques include:

• Segregation of duties

• Exception and exposure reporting

• Reconciliation

• Delegation of authority/limit

• Prompt, reliable management information

 BROAD AREAS

 The following are the broad areas of Operational Risk in Banks

1. Organizational

• Control consciousness

• Timely, relevant management information

• Risk delegation [authority, limits]

2. Product
• Design and development

• Performance management

• Communication

2. Customer

• Acquisition

• Service

• Satisfaction

3. Human Resources Risk

• Quality [recruit, develop, perform]

• Occupational health and safety

• Employee turnover

• Key personnel risk

• Fraud, Error

• Money laundering

• Confidentiality breach

4. Process

• Fraud, error, theft

• Accuracy and completeness of data and transaction processing

• Information technology
  FUNCTIONS
Function wise operational Risk can be illustratively explained as under:

1. Technology Risks

• Programmed Error

• Model Risk

• Management information

• Telecommunication failure

• Contingency planning

2. Relationship Risk

• Contractual disagreement

• Dissatisfaction

• Default

3. Transaction Risk

• Execution error

• Product complexity

• Booking error

• Settlement error

• Commodity delivery risk

4. Facilities Risk
• Safety

• Operating Cost

• Fire/ Flood/ Earth quake

Chapter 5 :

Evaluation of management and control

techniques

MANAGEMENT & CONTROL

Management and control techniques are evaluated against the related risks
to determine appropriateness, likely effectiveness and efficiency. The nature
of controls considered is as follows:

1. Preventive: Preventive controls are designed to stop undesirable

transactions, items, events, errors or incidents occurring. Examples
are: authorization and approval controls, staff training, automated
system calculation and validation, password and access controls.

2. Detective: Detective controls are designed to promptly reveal

undesirable transactions, items, events, errors or incidents so that
appropriate corrective action can be taken. Examples are:
reconciliation, review of exception reports.

3. Recovery: Recovery techniques are designed to reduce the

consequences of damage arising from crystallization of an
individually significant incident or a significant number of undesirable
transactions, items, events, errors or incidents. Examples are: tested
business continuity plans, succession plans, back-up sites and files,
crisis management. The techniques used to deal with risks need to be
tailored to the particular business circumstances. Some examples of
typical strategies that might be appropriate are:

• High Impact – Low Likelihood

Example: A plane crash destroying the main computer site [unlikely to

happen but shall have far reaching consequences]

Focus: Recovery techniques are often the best option in these circumstances,
rather than attempting to prevent this risk.

• High Impact – High Likelihood:

Example: Unauthorized payments

Focus: These circumstances are the most urgent to deal with. Effective
preventive techniques in combination with recovery techniques are essential
to reduce the level of risk to an acceptable level.

• Low Impact – High Likelihood:

Example: Teller deficiencies

Focus: These are low impact, individually, but if not controlled could get out
of hand cumulatively. An effective strategy here shall be to focus on
detective controls and monitoring, combined with prompt action if errors
exceed preset tolerances.

Chapter 6:

MODELS AND APPROACHES

 MODELS

A. Scalar Models:
The operational risk in these models is calculated as a percentage of major
business parameters like gross income, operating costs, asset base,
borrowings, etc. The basic reasoning behind these models is that these
parameters serve as proxies to the scale of business operations and hence
risk exposure. The Basel Committee recommends two variants of this
model.

• Basic Indicator Approach: BCBS recommends computation of

operation risk as a percentage of the average of three years positive
gross annual income.
• Standardized Approach: Bank’s activities are divided into eight
business lines and the risk is calculated separately for each of the
business line applying appropriate percentage.

B. Statistical Approaches:
Pure statistical models rely on building historical internal loss databases and
make predictions about their behavior and loss influence using statistical
tools. This method is scientific and is based on recorded facts. Operational
risks are dynamic and even a small change in the process flow affects the
risk profile of the business unit. Hence past loss data cannot be a true
reflection of current state of affairs and measuring the risk using these
approaches though are based on sound reasoning is like driving a vehicle
looking only at the rear view mirror. Use of Scorecards in combination with
statistical approaches can effectively overcome this drawback.
 Chapter 7:

Management
Information for
Op Risk Committees

• KRI
• RCSA
 • Matrix
• Regulatory Capital
• Economic Capital

Historical Data

Forward Looking

Data

3. Synthesis of

Historical

and Forward

Looking Data

This process will comply with the qualifying criteria for the AMA approach
for regulatory capital calculation

Chapter 8:

CAPITAL CALCULATION

The Basic Indicator Approach

Banks using Basic Indicator Approach (BIA) have to hold capital for
operational Risk equal to a fixed percentage (alpha) of a single indicator
(Gross Income)

•K = [( S(GI 1…n * a)]/n

•Where K = Capital charge under BIA

•GI = annual gross income where positive over previous 3 yrs

•n = number of previous 3 yrs for which gross income is positive

•a = a fixed percentage set by the Basle committee RBI has defined a as 15%

As per RBI guidelines, banks are required to maintain Capital (besides credit
and market risk) for Operational Risk also w.e.f. FY 2007-08.

RBI in its guidelines on implementation of the New Capital Adequacy

framework issued on 27.04.2007 has advised that Banks in India having
foreign presence should adopt BIA for calculating capital charge for
Operational Risk w.e.f. 31.03.2008, wherein RBI has revised the definition
of Gross Income. The Gross Income component as per RBI is:

Gross Income as per Draft Guidelines

= Net profit
(+) Provisions & Contingencies
(+) Operating expenses (Schedule 16)
(-) Profit on sale of HTM investments
(-) Income from insurance
(-) Extraordinary / irregular item of income
(+) Loss on sale of HTM investments

Working on BIA Capital Calculation:

Rs. In Crore

Detail of calculation Mar 03 Mar 04 Mar 05

Net Profit 842.20 1109.69 1410.12
Add Provision & 1475.09 2012.17 1297.09
Contingency
Add: Operating Expenses 2056.73 2370.72 2975.21
Less: Profit on Sale of HTM 4.00 143.00 97.51
Less: Income from Insurance 0.00 0.00 0.00
Less: Irregular Income 0.00 0.00 0.00
Add: Loss on Sale of HTM 0.00 0.00 0.00
Total Gross Income 4370.02 5348.58 5584.91

Average Gross Income of last 3 Years 5101.00 Crore

Total Capital required under BIA @. 15% 765.18 Crore

 The Standardized Approach

• Banks activity is to be divided into 8 Business Lines.
• Each Business Line is measured by an Exposure Indicator, which is
Gross Income for that Business Line.
• Within each Business Line the capital charge is calculated by
multiplying the said Business line Gross Income by a “beta” factor
• The sum of all Business Line Capital charge would be the Capital
charge for the Bank.

• K = {S yrs1-3 max[S(GI 1…8 * b 1…8 ),0]}/n

K- is capital charge

GI 1…8 Gross Income over the past 3 yrs for each business line.
 b is the a fixed percentage for each Business line set by the Basle
Committee.

Business Line Beta FACTOR

Corporate Finance 18%

Trading & Sales 18%

Retail Banking 12%

Commercial Banking 15%

Payment & Settlement 18%

Agency Services 15%

Asset Management 12%

Retail Brokerage 12%

Advanced Measurement Approach

• Under Advanced Measurement Approach the capital charge would be

based on an estimate of operational risk derived from bank’s internal
risk measurement system.
• This approach is expected to be more sensitive than the other two
approaches.
• Adoption of this approach is subject to certain qualitative and
qualitative standards.

A bank’s internal operational risk measurement system must take into

account the following elements:

• Internal Loss data

• External Loss data
 • Internal control and business environment factors

The measurement system may also factor in the following elements:

• Risk mitigation (e.g., insurance)

• Correlations

These elements can be combined in different ways to quantify exposure to

operational risk.

Chapter 9:

Mitigating Operational Risk

DETAILS
A firm has various options to encounter an operational risk. First and
foremost, it can avoid the risk, for example keeping away from a particular
line of business. Secondly, the firm can retain the risk but develop controls
to reduce the frequency and severity of the losses.

The firm may also choose to absorb these losses through earnings. Where
the firm still incurs risk after introducing controls and self financing through
earnings, the firm may choose to either retain the risk of loss or transfer the
risk through insurance or other mechanisms. Normally, low-severity high-
frequency losses are preferred to be funded through earnings and low-
frequency high-severity risks are spread through geographical
diversification, recovery sites, insurance, etc.

Operational Risk Management is more important today for internationally

active banks because the Bank for International Settlements’ latest capital
framework requires capital charge based on their operational risk exposure.
This requirement has tremendous impact on market competitiveness of bank

Chapter 10

CHALLENGES IN OPERATIONAL RISK

MANAGEMENT
 CHALLENGES

The biggest challenge in addressing Operational risk perhaps lies in
accepting the fact that people, processes, systems and external events, if not
properly managed, could indeed pose a major threat to the profitability,
efficiency and in fact, the very existence of a bank and that by managing
operational risk across all functions and geographical locations, a bank will
maximize shareholder value, optimize the use of capital and reduce volatility
of earnings.

Chapter-11:

Research Methodology
Research Methodology
A market research is a systematic study for & analysis of information. We
started with a clear, concise objective in our mind- do the people feel the
need of savings mode of transactions and business heps, & what factors
fulfill their needs .

1) Objective of the study: The market research was undertaken with the
objective in mind- to study the consumer behaviour & their aforesaid
needs .

2) Determining Research Design: A Research Design is the specification

of the methods for acquiring the necessary information keeping the
goal in mind. Descriptive research was undertaken to find out how the
purchase patterns varied with the demographics like sex, age, group,
income level, & occupation. Casual research design was also used to
find out how the consumer reacted to any change in either the
availability of the preferred Punjab National bank.

3) Determining Data Collection Method & Forms:

Primary market: The data has been collected with the help of

questionnaire with a view of obtaining the information on all the aspects

relating to the banking industry in general and PUNJAB NATIONAL

BANK specifically.
 Secondary market: This data has collected through Internet analysis tools:

the major analysis tools used have been percentages and data is interpreted

with the help of bar graph and pie diagrams.

4) Data Analysis & Interpretation: Once the data was collected, it was
edited, coded & tabulated before the analysis was performed. Coding
was done in terms of percentage & Ratio’s, as can be seen in the
following pages. The results of the analysis are being interpreted with
the help of Ratio Analysis.

5)Research Report: We culminate our research process with presentation

of the research reports. The report is here by made, depending upon the level
of understanding of analysts.

Sampling plan for survey:

Sample size = 100

Sampling area = New Delhi

Sampling time frame = 2 months

ANALYSIS OF OUESTIONAIRES
Q1. Do you know about Punjab National Bank ?

ANS. YES : 98
NO : 02

2%

yes
no

98%

Number of people knowing about Punjab National Bank.

The study shows that out of 100 people, 98 people know about Punjab
National Bank and 2 don’t. The above analysis proves that Punjab National
Bank as a brand had established itself among the common man.

Q2. If yes, then how?

ANS.
  Through an association with the Bank 13
 Through friends/relatives 24
 Through advertisements 54
 Through any other sources 9

9% 13%

24%
association with the bank
54% friends/relatives
advertisements
other sourses

Source of information about bank

The pie diagram at the preceding page shows that maximum no. Of people
know about Punjab National BANK through its advertisements followed by
friends / relatives, than about 13% people knows about it through an
association with bank and rest from other sources. So this study shows that
most effective way to approach its customer is the advertisements.

Q3. Do you have a Bank Account?

ANS.
YES 88
 NO 12

12%

yes
no

88%

People having bank A/C

It can be observed from the above pie diagram that a considerable no. Of
people are having bank account; this shows that having a bank A/c is
becoming necessity these days. Those people not having bank a/c are mostly
minors.

Q4. Which categories of bank you prefer?

ANS.
 NATIONALISED BANKS 54
PRIVATE BANKS 40
MULTINATIONAL BANKS 06

6%

40% 54%
Nationalized banks
private banks
multinational banks

Share of different categories of banks

It can be inferred that still nationalized banks are people’s favorite. Private
Banks have also been able to get a good market share. But the position of
multinational banks is not satisfactory. They have to work constantly very
hard for establishing themselves among the common man.

Q5. Presently, which of the following facilities you

are Availing?
  Phon  Petro  Debit  Credit  Internet
e card card card Bankin
Banki g
ng 2 15 17
3
41
 ATM  All  None  Any
other

57 0 32 1

60
50 no. of people
40
30
20
10
0
any other
banking

banking
debit

ATM

none
petro

credit

internet

all
card
phone

card

card

Graph showing number of people availing different

facilities
This study shows that the maximum no. of people are using ATM facility
followed by phone banking. But still many people are not using any of the
facilities. Debit card and credit card are still holding a place among the
people. But facilities like petrocard and Internet banking are not much
popular among the common man.

Q6. What is your perception about Punjab

National Bank?

 Very  Good
Good
48
17
 Average  Below
Average
38
4
 50 very good

40 good

30 average

20 below
average
10

0
very good good average below average

PERCEPTION OF PEOPLE FOR

Punjab National BANK

The diagram shows that generally people have good perception about Punjab
National BANK where as a considerable number of people have average
perception, followed by very good perception and a very few number of
people have below average perception.

Q7 Do you know about following products of Punjab

National Bank?

ANS.
 SAVING ACCOUNT 65
 CURRENT ACCOUNT 28
 CREDIT CARDS 34
  LOANS 29
 INSURANCE 11
 RBI RELIEF BONDS 03
 ALL OF THE ABOVE 04
 NONE OF THE ABOVE 14

70
60 no. of people
50
40
30
20
10
0
RBI relief
loans

none
saving a/c

credit card

all of the
current a/c

insuarence

above
bonds

People knowing about Punjab National BANK products

The graph shows that the saving a/cs are most popular among the people
followed by credit cards of Punjab National BANK. Customers are also
aware of its loans schemes and current a/c. but still there is certain number
of people who don’t know about any of its product. People also know about
its insurance plans but only a few people know about RBI relief bond offer
by Punjab National BANK, also there is hand full number of people who
know about all the products of Punjab National BANK.

Q8. Have you seen/ heard any of the Punjab National

Bank’s advertisements?
ANS.
 Yes 64

 No 36

36%

yes
no

64%

People seen/ heard Punjab NationalBank’s

advertisements?

The pie diagram shows that a good percentage of people have seen or heard
Punjab National BANK advertisements, but still there are some of people
who haven’t seen or heard Punjab National BANK advertisement. This
shows that a large number of people know Standard Chartered Bank through
its advertisements.

Q9. Which Bank you like the most and why?

 HDFC 12
 Punjab National bank 32
STANDARD CHARTERED 6
 ICICI 31
  HSBC 3
 ANY OTHER 16

35
no. of people
30
25
20
15
10
5
0

OTHER
UTI
HDFC

SCB

HSBC
ICICI

ANY
Graph showing preference of different banks

The study shows that performance of Punjab National Bank is quite good
except in regard to ICICI Bank and HDFC Bank. It can even evade them
through constantly providing good services and low prices to people.

Q 10. Where do you think a Punjab National Bank/ATM should come

up?

 Rajouri  Janak  Rohini

Garden Puri
64 11 14
• Karol  Pitam  Ashok
 bagh Pura Vihar
24 7 0
 Kamla Moti Bagh  Others
Nagar 6
12 16

70
60 no. of people
50
40
30
20
10
0
Rohini
Garden
Rajouri

Kamla

Ashok
Moti Bagh
Janak

areas
Vikas Puri

nagar

PitamPura

other
Vihar
Puri

(Punjab National Bank ATM can be found anywhere)

 SWOT ANALYSIS

STRENGTHS
(1) Punjab National Bank is celebrating its 150 years of existence. This is
because it is getting tremendous support of its customers in India and
abroad.

(3) In India Punjab National BANK has been marked as the second most
profitable multinational company after HLL.

(4) The first four cash withdrawals per month from a non standard chartered
bank ATM are free of cost.

(5) The Connaught Place branch of Punjab National BANK it’s opened
365 days 24 hours.
Conclusion and Suggestion

CONCLUSION
Founded in 1906, Punjab national bank is one of the premier banks in India,
with a network of 2508 branches across the country. The bank was the first
to launch networked ATMs in India and obtain an ISO Certification. Punjab
national Bank has also achieved the distinction of being the country's highest
net profit earner among nationalized banks for the year 2005. The bank has
already carved a niche in providing IT-based services such as Networked
ATMs, Anywhere Banking, Tele banking, Remote Access Terminals,
Internet & Mobile Banking, Debit Cards, etc Punjab national Bank has a
vision to help improve the economic condition of common people of India.

LIMITATION OF STUDY:

Due to the following unavoidable and uncontrollable factors the results

might not be accurate. Some of the problems might faced while conducting
the survey are as follows:

1. Certain open-ended questions have been put in the questionnaire

to give respondents freedom to express their perception.
2. Time and cost constraints were also there
3. Chances of some biasness couldn’t be eliminated.
4. A sample size of 100 has been used due to time limitations.
Suggestions

 The company should improve their Current Ratio &

Liquidity Ratio.

 The co. should increase the Strength of their policyholders.

 The co. should introduce the new investment plans & policies
for the upcoming customers or the future customers.

 The co. should make a particular sector as a target, which

they have to achieve within a specified period.

 The co. should focus on their investment & profitability

constraints.

 The co. should improve their lifetime common features plans.

 The investment plans & policies must be very flexible in

nature & it should not be rigid one.
Bibliography

1 S. K. Bagchi
2 Brian Coyle
3 www.gloriamundi.com
4 www.google.com
5 www.altavista.com
6 www.valueresearchonline.com