Research Project

on

Application & Management of Information

System
in

Punjab National Bank

IN PARTIAL FULFILLMENT OF
MASTER’S DEGREE IN BUSINESS ADMINISTRATION
INDRAPRASTHA UNIVERSITY
(2008-2010)

Submitted by:
Pratik Jain -- 0781563908
Northern India Engineering College (N.I.E.C), Delhi

Under the valuable guidance of:

Mrs. Shaveta Kumar (Faculty, N.I.E.C)

Subject: Information System Management

Course Code: MS-205
Submitted on: 30 17 November, 2009

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 Acknowledgement

This formal piece of acknowledgement is an attempt to express the feeling of

gratitude towards people who helped me in successful completion of
research project.

I would like to express my deep gratitude to Mr. B.D Sharma (branch

manager, PNB), for his constant co-operation. He was always there with his
competent guidance and valuable suggestion throughout the pursuance of
this research project.

Special thanks to Mrs. Shaveta Kumar, my internal coordinator who guided

me to work honestly and to give valuable suggestion for improving my work.
Above all no words can express my feelings to my parents, friends all those
persons who supported me during my project. I would also like to thank
almighty God for his blessings showered on me during the completion of
project report.

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 INDEX
S.N Sub Topic Name Page Number
O Topic
S.NO
1. Acknowledgement 2
2. COMPANY PROFILE
1. Origin – Punjab National Bank 4
2. Profile 5
3. Vision and Mission 6
4. Financial Performance Comparison 7
3. INFORMATION SYSTEM IN PNB
1. History of Information System in PNB 8
1.a 2000- The Beginning
1.b 2001-2003- Long Term Strategy
1.c 2004-2007- Growth
1.d 2008- Rural Initiative
1.e 2009- 100% CBS Implementation
2. Other Banking Applications 12
2.a Straight to Processing (STP)
2.b Depository Setup
2.c Bank Mate & EDI
3. PNB IT Setup 13
3.a Systems
3.b Network Design
3.c Storage, WAN & Connectivity
3.d Security Systems
3.e Hardware & Software Resources
4. Organizations Other Computing 15
Resource
4.a Payroll TPS
4.b Online Assistance
4.c Account Opening - MIS
4.d SPNS, RTGS & Mobile Alert Service
4. IMPACT OF INFORMATION SYSTEM
1. Finacle’s Impact 16
2. Impact on Employees, Customers 17
5. Available Alternatives 18
6. Conclusion 19
7. Suggestion 20
8. References 21

3
 Company Profile – Punjab National Bank
(The name you can bank upon)

Origin
Established in 1895 at Lahore, undivided India, Punjab National Bank (PNB)
has the distinction of being the first Indian bank to have been started solely
with Indian capital. The bank was nationalized in July 1969 along with 13
other banks. From its modest beginning, the bank has grown in size and
stature to become a front-line banking institution in India at present.

• A professionally managed bank with a successful track record of over 110

years.
• Largest branch network in India - 4668 Offices including 432 Extension
Counters spread throughout the country.
• Strategic business area covers the large Indo-Gangetic belt and the
metropolitan centers.
• Ranked as 248th biggest bank in the world by Bankers Almanac, London.
• Strong correspondent banking relationships with more than 217
international banks of the world.
• More than 50 renowned international banks maintain their Rupee Accounts
with PNB.
• Well equipped dealing rooms; 20 different foreign currency accounts are
maintained at major centers all over the globe.

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

With over 38 million satisfied customers and 4668 offices, PNB has
continued to retain its leadership position among the nationalized banks. The
bank enjoys strong fundamentals, large franchise value and good brand
image. Besides being ranked as one of India's top service brands, PNB has
remained fully committed to its guiding principles of sound and prudent

4
banking. Apart from offering banking products, the bank has also entered the
credit card & debit card business; bullion business; life and non-life insurance
business; Gold coins & asset managementsbusiness,setc. Since its humble
beginning in 1895 with the distinction of being the first Indian bank to have
been started with Indian capital, PNB has achieved significant growth in
business which at the end of March 2009 amounted to Rs 3,64,463 crore.
Today, with assets of more than Rs 2,46,900 crore, PNB is ranked as the 3rd
largest bank in the country (after SBI and ICICI Bank) and has the 2nd largest
network of branches (including three overseas offices).

PNB has always looked at technology as a key facilitator to provide better

customer service and ensured that its ‘IT strategy’ follows the ‘Business
strategy’ so as to arrive at “Best Fit”. The bank has made rapid strides in this
direction. Along with the achievement of 100% branch computerization, one
of the major achievements of the Bank is covering all the branches of the
Bank under Core Banking Solution (CBS), thus covering 100% of its business
and providing ‘Anytime Anywhere’ banking facility to all customers including
customers of more than 2000 rural branches. The bank has also been
offering Internet banking services to the customers of CBS branches like
booking of tickets, payment of bills of utilities, purchase of airline tickets etc.
Towards developing a cost effective alternative channels of delivery, the
bank with more than 2150 ATMs has the largest ATM network amongst
Nationalized Banks.
With the help of advanced technology, the Bank has been a frontrunner in
the industry so far as the initiatives for Financial Inclusion is concerned. With
its policy of inclusive growth in the Indo-Gangetic belt. The Bank has
launched a drive for biometric smart card based technology enabled
Financial Inclusion with the help of Business Correspondents/Business
Facilitators (BC/BF) so as to reach out to the last mile customer. The BC/BF
will address the outreach issue while technology will provide cost effective
and transparent services. The Bank has started several innovative initiatives
for marginal groups like rickshaw pullers, vegetable vendors, dairy farmers,
construction workers, etc. The Bank has already achieved 100% financial
inclusion in 21,408svillages.

Backed by strong domestic performance, the bank is planning to realize its

global aspirations. In order to increase its international presence, the Bank
continues its selective foray in international markets with presence in
Hongkong, Dubai, Kazakhstan, UK, Shanghai, Singapore, Kabul and Norway.
A second branch in Hongkong at Kowloon was opened in the first week of

5
April’09. Bank is also in the process of establishing its presence in China,
Bhutan, DIFC Dubai, Canada and Singapore. The bank also has a joint
venture with Everest Bank Ltd. (EBL), Nepal. Under the long term vision,
Bank proposes to start its operation in Fiji Island, Australia and Indonesia.
Bank continues with its goal to become a household brand with global
expertise.
Amongst Top 1000 Banks in the World, ‘The Banker’ listed PNB at 250th
place. Further, PNB is at the 1166th position among 48 Indian firms making it
to a list of the world’s biggest
companiesscompiledsbysthesUSsmagazines‘Forbes’.

Punjab National Bank continues to maintain its frontline position in the

Indian banking industry. In particular, the bank has retained its NUMBER ONE
position among the nationalized banks in terms of number of branches,
Deposit, Advances, total Business, operating and net profit in the year 2008-
09. The impressive operational and financial performance has been brought
about by Bank’s focus on customer based business with thrust on SME,
Agriculture, more inclusive approach to banking; better asset liability
management; improved margin management, thrust on recovery and
increased efficiency in core operations of the Bank.

Vision and Mission

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 sssssssunder one roof"

Mission

"Banking for the unbanked"

6
 Performance Comparison over the years
Punjab National Bank (Performance Chart)
(Amount in Rs Crore)
All Banks
Average

During the FY 2008-09, the bank achieved a net profit of Rs 3,091 crore,
maintaining its number ONE position amongst nationalized banks. Bank has
a strong capital base with capital adequacy ratio at 14.03% as on March’09.

As on March’09, the Bank has the Gross and Net NPA ratio of 1.77% and
0.17% respectively. During the FY 2008-09, its’ ratio of priority sector credit

7
to adjusted net bank credit at 41.53% & agriculture credit to adjusted net
bank credit at 19.72% was also higher than the respective national goals of
40% & 18%.

Information System in PNB

History of Information System at PNB

2000 - The Beginning

In March 2000, the penetration and use of IT was not very high at PNB. PNB
was relying on manual processes to collect, store, and analyze business
data. Its retail branches were not connected and it was difficult for
management to understand business drivers and impediments. This situation
made it difficult for PNB to provide optimum customer service and resulted in
lost opportunities. Manual operations were also costly to support. The bank
used seven different software, which ran on 13 different flavors of UNIX, on
standalone PCs. The 500-odd branches were not networked and only 35
percent of the bank's business was computerized. The overall expertise in IT
among users was low.

The Central Vigilance Commission (CVC) issued a directive to the bank to

computerize at least 70 percent of its business by December 2000. This
prompted the bank to work out a strategy to tackle the daunting task in the
short period of time.

At that time there were various factors which caused a barrier in

implementing an Information System for centralized banking. These
weaknesses were:-

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 • Different Unix OS used in different branches.
• Different standalone financial applications on PCs at different
branches.
• Lack of interoperability due to disparity in systems.
• Limited expertise on the software packages currently deployed.
• Most branches did not have a proper LAN in place.

PNB hired a consultant and devised a two-pronged plan of action. The plan
comprised:
• A short term goal - To meet the CVC deadline of 70 percent computerization.
• A long term goal - To create a dependable core banking infrastructure and
build a nationwide network to connect different branches to the core
infrastructure.

PNB chose a product from a company called Nelito. It was a DOS-based, 'Partial
Branch Automation' application. Standalone versions were chosen since there
weren't LANs in place, and deployment of LANs at branches would take so long that
the CVC deadline couldn't be met. The interface was simple in design, and thus
easy for the bank personnel to use.

The bank requested CVC for an extension of the deadline and was granted
time till March 2001. By March 2001, 70.60 percent of the bank's business
was computerized.

2001-2003 - The Long Term Strategy

In the long-term, PNB wanted a technology that would consolidate all its
business resources and sustain the bank's future growth. It also wanted to
create its own network, which would play a vital role in its success. Three
consultants were appointed to review technology options for long-term
adoption. The verdict of the consultants was to deploy a centralized core
banking architecture.

On 30 March 2001, the bank used the services of Infosys for the deployment
of Finacle. A core team was selected, which would be the heart of the
project. Infosys trained 200-odd personnel from a core team over six months.
The core team modified and customized the package according to its specific
needs.

As the time passed besides making a mark in terms of revenues, the bank—
among the few technology-savvy PSUs—set up examples for other banks,
especially PSUs in early of this decade.

9
Institute for Development and Research in Banking Technology (IDRBT), a
division of the Reserve Bank of India (RBI), presented PNB with the award for
excellence in banking technology in 2002. This was quite an achievement
considering that the technology transformation started only two-and-a-half
years back at PNB. In March 2000, the bank had only 36 percent of its
businesses covered on computers, as against 84 percent in 2002.

PNB purchased servers, security infrastructure, and storage equipment and

decided to house it in its own central data center in New Delhi. A lot of
infrastructure from Cisco has been used to build the data center.

In April 2002 the bank rolled-out Finacle in 7 branches as a pilot venture.

This was done because the bank had seven different application packages,
and it wanted to ensure smooth migration of the data into Finacle. By mid
May 2002, all data from other software was successfully migrated into
Finacle and by end of year, the number of locations has increased to 12. As
far as the centralized core banking system is concerned, PNB has a data
centre at the corporate office and all these 12 centers have an extension to
that data. This system enables an individual having an account in any of our
branches to conduct transactions/operate the account from any of these 12
branches.

2004-2007 – The Growth Stage

In 2004, India's National Association of Software and Service Companies
(NASSCOM) nominated Punjab National Bank (PNB) as the best user of
technology in its sector. The bank continued to spread the technology to
more of its branches and centers.
The adoption of Core Banking Solution not only ensured standardization of
products, but also enabled quick launch of the new and innovative financial
products ensuring sufficient lead time to market it. The core banking solution
offered seamless platform for integrating various such initiatives and also
reduces the cost of transaction, thereby offering financial products at an
affordable cost.

On May 27,2004 Punjab National Bank (PNB) has introduced Loans and
Advances Data Desk for Evaluations and Reports, (LADDER), a computerized
management information system for rationalization of returns, asset
classification and provisioning, credit monitoring and NPA management.

The implementation of the system comprised two modules. The first module
would require branches to capture data on borrowal accounts as a one-time
activity with transaction updates at periodic intervals.

The second module for implementation of the software envisages collection

10
of information on the loan accounts from the stage of receipt of application
to disbursement of sanctioned loans.

With the implementation of this system, manual collation of a large number

of loan-related returns become redundant and branch staff concentrated on
business development and objective monitoring of asset quality.

2008 – Rural Initiative

Infosys Technologies Ltd (Infosys) and Punjab National Bank (PNB) in 2008
announced that PNB has chosen Finacle from Infosys to power its core
banking initiative for rural banking deploying Finacle across PNB’s six
Regional Rural Banks (RRBs) covering 1300 branches.
Punjab National Bank took lead in business excellence and commitment to
customers by providing core banking coverage to its 4850 service outlets.
Due to the remoteness of rural branch locations, there were issues such as
connectivity of branches for operational ease, centralization of data, and
enhancement of customer service as well as innovation in banking products.
Moreover, all this is needed at a substantially lower cost for RRBs as their
operations were relatively less complex. Finacle from Infosys recognized this
need of RRBs and adapted its industry leading core banking solution to suit
the requirements of these institutions. PNB management selected this
platform to transform and standardize the operations of its RRBs.
A majority of Indian banks were already ahead in terms of adoption of new
age technology. Extending the benefits of technology to RRBs helped
sponsor banks in not just priority sector lending but also present an
additional business avenue with tremendous potential. Finacle enabled RRBs
to better manage audit processes, adhere to statutory compliance, enhance
internal MIS requirements and offer customers competitive services on par
with commercial banks.
2009 – 100% CBS Implementation
In Feb, 2009 India's second largest public sector bank, announced that it has
completed 100 per cent core banking implementation at its 4604 branches and
extension counters through the
FinacleaUniversalaBankingaSolutionafromaInfosys.
The bank implemented industry-leading Finacle CBS across its operations running a
flexible and scalable database platform from Oracle and innovative and cost-
effective Sun SPARC enterprise serversafromaSunaMicrosystems.

Finacle has enabled the bank to consolidate and centralize its operations,
improving branch efficiency and productivity per employee. Consolidation

11
has also resulted in reduction of revenue leakage and cost, while increasing
ease of technical support and maintenance at branches. The solution's
scalability has also enabled the bank's scalability to be the best in the
countryawithatheanumberaofapeakatransactionsaata3.5amillion.

Further, the bank has covered all the branches under CBS platform including
extension counters. As a result, 38 million PNB’s customers are enjoying the
facility of “one bank – one account”. In addition, the bank has intended to
build a data center capable of handling business of 6000 branches and 1
lakh terminals. The bank was awarded “IBM green award” for adopting
environment friendly technology for data warehouse implementation during
the year.

Other Banking Applications

The banking major also introduced a number of value added services like
ATMs, Tele-banking, SMS banking, mobile banking and Internet banking,
remote access facility through its website, etc. under a license from RBI to
launch Internet banking.

The bank also enabled customers to avail of the Straight to Processing (STP)
facility. The biggest advantage of STP is that if a person with an account in
Delhi deposits a cheque in Chennai, his account in Delhi gets updated the

12
same day. PNB’s team has also customized this package to suit the typical
requirements of a public sector bank. “As PNB handles huge number of
government accounts—public provident fund, deposit of income tax, deposit
of different duties and treasury payments, PNB had to customize it and also
built a module for government businesses into this package.

The bank also has a depository set-up (to store dematerialized share
certificates) at its corporate office in New Delhi and another in Mumbai.
Customers owning shares and bonds can deposit them at these depositories
after which the hard copies are destroyed. The bank, on the other hand,
keeps a digital copy of all these documents. Thus, one does not have to
bother about the loss of paper, or a signature that does not match and so on.
Customers can now instruct the bank at any point of time to transfer these
securities.

Another very interesting development with PNB is its contract with Indian
Railways. It is putting up an ATM machine at the New Delhi station’s
reservation office, which is going to be a interface between the Railways’
server and the bank’s server. Once this is functional, customers can collect
their tickets from the ATM machine and the payment can be made using
credit or debit cards. Once this is successful and the interface is done, the
bank plans to enable all their ATMs across the country on this platform.

Electronic Data Interchange (EDI) is another technology initiative that the

bank has taken up. It has entered into an agreement with the Customs
department wherein the Customs’ server is connected with the bank’s
corporate office server, which is further connected to several branches of
PNB and also to importers. Thus, whatever duties are required to be
deposited with the Customs department can be debited from the importer’s
(read customer’s) account automatically. The pilot project for this has
already been carried out and the bank plans to introduce this service soon.

The PSU has also introduced bilingual software known as Bank-mate. With
the help of this software one can generate reports in Hindi and also can get
his/her passbook in Hindi. This is already in operation at around various
branches and PNB is also getting orders for this package from other banks.

PNB’s IT Setup
PNB also has a number of applications running on its network like any other
Financial Institution. The bank has standardized all its platforms on UNIX
operating system and RDBMS on Oracle. Other OS like Microsoft’s windows
2000/ XP are also enabled in centers. As far as the hardware platform is

13
concerned, PNB has Sun Microsystems’ Web servers at the data centre.
Apart from this, they are also using Compaq, IBM and Xeon servers. At some
locations, the bank is still using DOS machines to run some of their ATMs.

Systems

Before deploying the core banking architecture, PNB used servers which
were NT-based, from IBM, and from other vendors. The bank conducted
benchmarking tests for Finacle on various server platforms. And it was
satisfied with the performance of Sun's hardware on Solaris. Sun's Fire
servers, Solaris OS, and Oracle's RDBMS are now in use.

Network design

Cisco has tied up with PNB to evolve the network design and implement a
nationwide network backbone to connect all its offices. Cisco will assist the
bank in understanding and implementing the various technologies
associated with the project. The converged network infrastructure allowed
PNB to standardize the applications and software needed to provide the
banking services. The various branches are connected to the data center
using new-world routing and switching technologies.

Storage systems

The bank has followed RBI's storage requirement guidelines. Provisions have
been made to store transaction data for around 10 years. In some cases,
data is stored permanently. Around 164 Sun enterprise class servers are
used in DAS architecture. The total capacity is of multiple TBs. The Sun
hardware uses an in-built storage management tool. Later look over a
storage management application from VERITAS.

WAN and connectivity

101 branches of the bank were on a WAN in 2000. The bank put 500-odd
branches on the WAN in 2002, and in three years the WAN had 2000-odd
branches.

The bank tried a number of connectivity options. 802.11b wireless

connectivity was installed in five branches to begin with. The bank then
explored the option of leased lines and used connectivity from MTNL and
BSNL. It also used Bharti's leased line between Mumbai and Delhi. The bank
also used Reliance Infocomm's fiber optic backbone along with the leased
lines in locations where the optic fiber does not reach.

14
PNB had appointed HCL Com-net to carry out 24x7 monitoring of the
countrywide network. There's a live link between HCL and PNB's IT head
office. The network is monitored remotely and can also be viewed at the
bank's IT facility, where a separate monitoring system is used.

Security Systems

Security was especially important because the bank could afford no

compromise. The security architecture had to be robust, reliable, and
scalable to meet current and future needs. Cisco was chosen as the service
provider who could meet these stringent requirements. The bank uses a
range of security products like Firewalls and IDSs from Cisco for its security
needs in its LANs and WAN. All data transactions between its routers and
switches are encrypted. It has appointed Ramco Systems as the security
integrator. The security integrator is responsible for the complete security
infrastructure and is answerable for any security breach or lapse. The bank
appointed security administrators. VeriSign provided the necessary Public
Key Infrastructure (PKI) to the bank for secure transactions.

Software Resources

PNB is using various software’s for its operational activities for its smooth
and efficient running, the Software used by PNB include:-
 Microsoft office 2003
 Acrobat Reader
 Bank-mate
 Attack Filters: - Spyware, Trojan, VoIP etc.
 Protocols: - IP, VLAN, DNS, HTTP, FTP, TCP, TELNET, UTP etc.
 Operating System’s:- UNIX, Solaris, Windows NT, 2000 Server, XP
etc..
 Databases: - MS Access, MS SQL, Oracle, FoxPro.

Hardware Resources

To fulfill the requirement and as per compatibility with software these

hardware are used:-
 HCL, IBM etc Desktops,
 Printer
 NT Based servers from IBM,
 Sun’s hardware for Solaris,
 Network Cards.
 Routers, Scanners etc…

15
Organizations Other Computing Resources

Payroll Transaction Processing System

Payroll TPS, which is a typical accounting transaction processing system
found in PNB. A payroll system keeps track of the money paid to employees.
The master file is composed of discrete pieces of information (such as a
name, address, or employee number) called data elements. Data are keyed
into the system, updating the data elements. The elements on the master
file are combined in different ways to create reports of interest to
management and government agencies and to send paychecks to
employees. Management notices the record of the employee’s efficiency to
work and may declare added bonus or other incentive. This report is checked
and approved by the branch manager after which cheque is issued to the
employee.

Online Assistance
PNB provides its customers online assistance by providing i-banking, online
complaints, providing them information about various products and services.
These complaints and assistance are processed by customer care services
executive.

Account Opening
In account opening the MIS is used, every information about the customer is
recorded like their name, address, account, type of account, account
information, their sample signature, these helps in Identification of customer
instantly and creating a database at faster rate. This includes the filling of
KYC and AC forms.

SPNS (Shared Payment Network System)

Swadhan, the first SPNS launched in Mumbai by IBA. The banks that
participate on this network could issue the cards to customers for transacting
on networks.

RTGS (Real Time Gross Settlement)

RTGS System is a payment settlement system that minimizes the credit risk
in the prevalent cheque clearing system. Under RTGS the funds are settled
on a near real time basis across Banks in different locations. Bank offers this
immediate electronic fund transfer facility to RTGS enabled bank branches
across through the country its designated RTGS enabled locations.

Mobile Alert Service

16
The clients now have the facility to subscribe to Mobile Alert Service for
receiving alerts on registered mobile phone numbers instantly after the
funds are pooled.

Impact of Information Systems

An information system is there to empower its users. A database simply
provides data, but an information system is all about providing the best
information the user needs to do their task more effectively. It also takes into
account that different users doing their own specific tasks may need to see
their information presented in differing ways. The benefits of an information
system follow when the user can quickly access, understand and respond
correctly to that information.
The implementation of Information Systems in PNB and other financial
institutions had a vast impact on the Employees (the way they work),
Customers, The industry & Government. The system provides information on
the past, present and project future and on relevant events inside and
outside the organization.

Finacle’s Impact
Finacle core banking solution is a comprehensive, integrated yet modular
business solution that effectively addresses the strategic and day-to-day
challenges faced by banks. It is highly parameterizable providing that much-
needed flexibility to adapt to a dynamic environment.

The solution has an integrated CRM module enabling banks to offer a rich
and differentiated value proposition to customers. The layered Service
Oriented Architecture (SOA), STP capabilities, web-enabled technology and
24 X 7 operations ensure multi-channel, multi-country and multi-currency
implementations. The functionality-rich modules in the solution provide
banks with a varied palette of features to continuously innovate on their
product and service offerings. With Finacle core banking solution, banks can
meet the challenges of managing change, competition, compliance and
customer demands effectively.

• Differentiated Product Spread

17
Finacle core banking solution offers an unlimited palette of features for
banks to design and deploy products for varying market segments. The
product bundling capabilities of the solution offers a wide range of
possibilities for banks to create products with innovative features. The
facilities provided for differential pricing, channel rules and customization
through Finacle Studio – the scripting engine, empower banks to
continuously innovate and extend their suite of products, across segments.

• Agile Operations
The Service Oriented Architecture (SOA) enables the IT team at the bank to
effect changes without touching the base code, ensuring lesser vendor
dependency and faster adaptability to changing business conditions.

• Robust Cross-sell Framework

The CIF and CRM capabilities in Finacle offer a unified view of the customer
across the entire solution and across multiple back-end applications,
enabling the bank to view the customer from a completely informed angle.
This empowers banks to effectively manage customer relationships and
aggressively explore cross-sell opportunities.

• Increased Operational Efficiencies and Productivity

Finacle core banking solution supports business events automation and
process orchestration, thus eliminating manual tasks and reducing process
time. The elimination of error and data redundancies also results in
increased branch productivity. Straight through Processing (STP) abilities
enhance reduction in turnaround and processing time, increasing output and
enabling speedy completion of tasks. The multilingual web-based single
repository of information enables remotely located bankers to collaborate
and transact seamlessly.

Impact on Employees
Information System serves employees with user friendliness, easy storage
and access of data, removal of redundancies, fastening up of the processes
and providing up of multiple views at same time.

In beginning the issues were mostly cultural. Most staffers were used to
working in a manual environment, and some had worked in standalone
environments. In the new networked environment, personnel at the
node/counter didn't actually 'see' the transactions updating in the various
account books. This gave rise to a number of queries and suggestions from
personnel. It took around six-eight months for the personnel to felt that the

18
environment 'change' had done them good, and they were used to working
on the systems.

Other Available Alternatives

The Indian banking sector is slowly coming of age and hand grooming this
sector is the banking solution market, which has carved a name for itself in
the global arena. Not to forget the pro-active government reforms that are
helping the Indian banking market reach greater heights and adding glitz
and glamour to Indian economy as a whole. Other then Finacle from Infosys
there are various available alternatives for which the banking industry and
financial institutions can opt. These are:-

• Office Accounting Professional 2009

• SAP ERP Financials
• Tally 9: Financial Accounting and Inventory Management Software
• Flexcube – ‘i-flex solutions’
• Hyperion Financial Management - System 9

While in past i-flex solutions’ flagship product Flexcube has been rated the
#1 banking product in the world by UK based IBS, an independent banking
solutions rating vendor, but Infosys Technologies’’ Finacle doesn’t took long
enough to overtake Flexcube. But now a day’s SAP ERP programmes are
giving a tough competition to Finacle.

19
 Conclusion
A management information system is a system or process that provides the
information necessary to manage an organization effectively. MIS and the
information it generates are generally considered essential components of prudent
and reasonable business decisions. This report starts with the Punjab National Bank
with overview of PNB followed by history of information system and the steps taken
by PNB to be effective in banking industry by using information’s technology.

Information Technology (IT) innovations in the last few years have changed the
landscape of banks in India. Today, IT seems to be the prime mover of all banking
transactions. Electronic and Information Technology together are bringing a swift
change in the way banks operate, especially offering better delivery channels and
customers’ friendly services. Anywhere banking, telebanking, mobile banking, net
banking, automated teller machine(ATMs), credit cards, debit cards, smart cards,
call centers, CRM, data warehousing have totally transformed the banking industry.
Today almost all the major banks in India like ICICI Bank, UTI Bank, Citibank,
Standard Chartered Bank, ABN Amro, SBI and PNB are offering online services to
their customers. ATMs have emerged as the most favored channel for offering
banking services to the customers in the world.

One of the biggest benefits that the bank has derived out of IT has been the
tremendous saving on recruitment front—the bank has not recruited more staff
even while the business and work pressures have gone up five times. Consequently,
PNB’s profitability has also increased. To train users the bank has set up more than

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15 computer training labs across the country. It explains all the TPS how the
transactions are made by the bank, using of these TPS from the new events such as
account opening, new allowances etc… to the routine work including cash and
payments record, updating of records, payroll and the processing of the complaints.
These TPS holds all the activities from the manager and employees to the
customers. The report discuses the inbound and the outbound logistics and relate
all the processes of TPS used in the bank with the Information System is enabling
the bank to provide the quality and satisfactory services to their customers.

Suggestions

The bank is using information system efficiently and it has increased the
customer satisfaction, efficiency, data storage, fast data retrieval. But to
improve more and regarding future success of PNB here are the some
suggestions.

 The bank must update Hardware to get maximum performance from

Information Systems in order to allow the IS to procure the least
amount of system resources it requires for functioning.

 The bank should update all their software, networks etc to keep
information system up to date for competitive edge, customer
satisfaction.

 Steps should be taken to increase the safety & to avoid the

unethical practices like phishing.

 Need for improved training for using Information Technology and

tools to employees.

 Intra firm communication should be improved.

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 References

Websites:-

http://www.networkmagazineindia.com/200305/tech4.shtml

http://www.expresscomputeronline.com/20021202/banks7.shtml

http://www.business-standard.com/india/news/pnb-to-implement-loan-data-
software/151819/

http://www.financialexpress.com/news/pnb-in-networking-pact-with-
cisco/64296/

http://www.pnbindia.com/

http://netpnb.com/

Books:-

PNB Vision 2007-2008 Zonal Training Centre Guide.

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