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Overview of Banking Institutions The Banking Sector

India has a well developed banking system. Most of the banks in India were founded by Indian entrepreneurs and visionaries in the pre-independence era to provide financial assistance to traders, agriculturists and budding Indian industrialists. The origin of banking in India can be traced back to the last decades of the 18th century. The General Bank of India and the Bank of Hindustan, which started in 1786 were the first banks in India. Both the banks are now defunct. The oldest bank in existence in India at the moment is the State Bank of India. The State Bank of India came into existence in 1806. At that time it was known as the Bank of Calcutta. SBI is presently the largest commercial bank in the country.

The role of central banking in India is looked by the Reserve Bank of India, which in 1935 formally took over these responsibilities from the then Imperial Bank of India. Reserve Bank was nationalized in 1947 and was given broader powers. In 1969, 14 largest commercial banks were nationalized followed by six next largest in 1980. But with adoption of economic liberalization in 1991, private banking was again allowed.

The commercial banking structure in India consists of: Scheduled Commercial Banks and Unscheduled Banks. Scheduled commercial Banks constitute those banks, which have been included in the Second Schedule of Reserve Bank of India (RBI) Act, 1934. RBI includes only those banks in this schedule, which satisfy the criteria laid down vide section 42 (6) (a) of the Act.

Indian banks can be broadly classified into public sector banks (those banks in which the Government of India holds a stake), private banks (government doe not have a stake in these banks; they may be publicly listed and traded on stock exchanges) and foreign banks. The banking system in India is significantly different from that of other Asian nations because of the countrys unique geographic, social, and economic characteristics. India has a large population and land size, a diverse culture, and extreme disparities in income, which are marked among its regions. There are high levels of

illiteracy among a large percentage of its population but, at the same time, the country has a large reservoir of managerial and technologically advanced talents. Between about 30 and 35 percent of the population resides in metro and urban cities and the rest is spread in several semi-urban and rural centers. The countrys economic policy framework combines socialistic and capitalistic features with a heavy bias towards public sector investment. India has followed the path of growth-led exports rather than the exportled growth of other Asian economies, with emphasis on self-reliance through import substitution. These features are reflected in the structure, size, and diversity of the countrys banking and financial sector. The banking system has had to serve the goals of economic policies enunciated in successive five year development plans, particularly concerning equitable income distribution, balanced regional economic growth, and the reduction and elimination of private sector monopolies in trade and industry. In order for the banking industry to serve as an instrument of state policy, it was subjected to various nationalization schemes in different phases (1955, 1969, and 1980). As a result, banking remained internationally isolated (few Indian banks had presence abroad in international financial centers) because of preoccupations with domestic priorities, especially massive branch expansion and attracting more people to the system. Moreover, the sector has been assigned the role of providing support to other economic sectors such as agriculture, small-scale industries, exports, and banking activities in the developed commercial centers (i.e., metro, urban, and a limited number of semi-urban centers). The banking systems international isolation was also due to strict branch licensing controls on foreign banks already operating in the country as well as entry restrictions facing new foreign banks. A criterion of reciprocity is required for any Indian bank to open an office abroad. These features have left the Indian banking sector with weaknesses and strengths. A big challenge facing Indian banks is how, under the current ownership structure, to attain operational efficiency suitable for modern financial intermediation. On the other hand, it has been relatively easy for the public sector banks to recapitalize, given the increases in nonperforming assets (NPAs), as their Government dominated ownership structure has reduced the conflicts of interest that private banks would face.

Financial Structure

The Indian financial system comprises the following institutions:

1. Commercial banks a. Public sector b. Private sector c. Foreign banks d. Cooperative institutions (i) Urban cooperative banks (ii) State cooperative banks (iii) Central cooperative banks About 92 percent of the countrys banking segment is under State control while the balance comprises private sector and foreign banks.

INTRODUCTION Punjab National Bank (PNB) was registered on May 19, 1894 under the Indian Companies Act with its office in Anarkali Bazaar, Lahore. The Bank is the second largest government-owned commercial bank in India with about 4,500 branches across 764 cities. It serves over 37 million customers. The bank has been ranked 248th biggest bank in the world by Bankers Almanac, London. The bank's total assets for financial year 2007 were about US$60 billion. PNB has a banking subsidiary in the UK, as well as branches in Hong Kong and Kabul, and representative offices in Almaty, Shanghai, and Dubai. From its modest beginning, the bank has grown in size and stature to become a front-line banking institution in India at present. PNB is a professionally managed bank with a successful track record of over 110 years. Strategic business area covers the large Indo-Gangetic belt and the metropolitan centers. It has 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 world.


1895: PNB commenced its operations in Lahore. PNB has the distinction of being the first Indian bank to have been started solely with Indian capital that has survived to the present. (The first entirely Indian bank, the Oudh Commercial Bank, was established in 1881 in Faizabad, but failed in 1958.) PNB's founders included several leaders of the Swadeshi movement such as Dyal Singh Majithia and Lala HarKishen Lal, Lala Lalchand, Shri Kali Prosanna Roy, Shri E.C. Jessawala, Shri Prabhu Dayal, Bakshi Jaishi Ram, and Lala Dholan Dass. Lala Lajpat Rai was actively associated with the management of the Bank in its early years.

1904: PNB established branches in Karachi and Peshawar.

1940: PNB absorbed Bhagwan Dass Bank, a scheduled bank located in Delhi circle.

1947: Partition of India and Pakistan at Independence. PNB lost its premises in Lahore, but continued to operate in Pakistan.

1951: PNB acquired the 39 branches of Bharat Bank (est. 1942), Bharat Bank became Bharat Nidhi Ltd.

1960s: PNB amalgamated Indo Commercial Bank (est. 1933) in a rescue.

1961: PNB acquired Universal Bank of India.

1963: The Government of Burma nationalized PNB's branch in Rangoon (Yangon).

September 1965: After the Indo-Pak war the government of Pakistan seized all the offices in Pakistan of Indian banks, including PNB's headoffice, which may have moved to Karachi. PNB also had one or more branches in East Pakistan (Bangladesh). 1969: The Government of India (GOI) nationalized PNB and 13 other major commercial banks, on July 19, 1969.

1976 or 1978: PNB opened a branch in London.

1986: PNB acquired Hindustan Commercial Bank (est. 1943) in a rescue. The acquisition added Hindustan's 142 branches to PNB's network.

1993: PNB acquired New Bank of India, which the GOI had nationalized in 1980.

1998: PNB set up a representative office in Almaty, Kazakhstan.

2003: PNB took over Nedungadi Bank, the oldest private sector bank in Kerala. Rao Bahadur T.M. Appu Nedungadi, author of Kundalatha, one of the earliest novels in Malayalam, had established the bank in 1899. It was incorporated in 1913, and in 1965 had acquired selected assets and deposits of the Coimbatore National Bank. At the time of the merger with PNB, Nedungadi Bank's shares had zero value, with the result that its shareholders received no payment for their shares. PNB also opened a representative office in London.

2004: PNB established a branch in Kabul, Afghanistan. PNB also opened a representative office in Shanghai. PNB established an alliance with Everest Bank in Nepal that permits migrants to transfer funds easily between India and Everest Bank's 12 branches in Nepal.

2005: PNB opened a representative office in Dubai.

2007: PNB established PNBIL - Punjab National Bank (International) - in the UK, with two offices, one in London, and one in South Hall, Middlesex. Since then it has opened a third branch in Leicester, and is planning a fourth in Birmingham.

2008: PNB opened a branch in Hong Kong.

Acquisitions by PNB


PNB acquired Bhagwandas Bank

1951: 1961: 1960s: 1986: 1993: 2003:

PNB acquired the 39 branches of Bharat Bank. PNB acquired Universal Bank of India PNB amalgamated Indo Commercial Bank PNB acquired Hindustan Commercial Bank PNB acquired New Bank of India PNB took over Nedungadi Bank, the oldest private sector bank in Kerala.

Industry size & trends of growth:

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 Indias top service brands, PNB has remained fully committed to its guiding principles of sound and prudent banking. Apart from offering banking products, the bank has also entered the credit card and debit card business; bullion business; life and non life insurance business; Gold coins and asset management business, etc. 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 i
Competitive analysis:
Peer Comparison
Company Market Cap (Rs. in Cr.) P/E (TTM) (x) P/BV (TTM) (x) 1.42 0.89 0.88 0.80 0.77 EV/EBIDTA (x) ROE (%) ROCE (%) D/E (x)

St Bk of India Bank of Baroda Punjab Natl.Bank Canara Bank Bank of India

140,168.01 28,598.13 27,388.62 18,362.35 17,528.40

9.94 6.60 5.98 6.39 6.62

14.68 15.30 12.68 12.24 14.59

15.7 15.1 16.5 17.0 13.0

0.0 0.0 0.0 0.0 0.0

0.00 0.00 0.00 0.00 0.00

Union Bank (I) IDBI Bank Syndicate Bank Oriental Bank Central Bank UCO Bank Indian Bank Allahabad Bank Corporation Bank IOB

13,275.59 10,568.87 8,111.28 7,056.22 6,831.55 6,160.28 6,134.97 6,005.36 5,798.35 5,600.05

6.42 5.62 4.19 5.58 6.73 9.97 4.12 5.30 4.17 10.45

0.85 0.54 0.85 0.58 0.74 0.84 0.59 0.57 0.61 0.45

13.67 11.97 14.12 12.44 13.64 13.35 12.64 12.83 12.57 13.27

15.0 13.4 22.8 11.5 5.0 19.4 15.7 11.8 16.1 4.9

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Peer Comparison
Company Market Cap (Rs. in Cr.) P/E (TTM) (x) P/BV (TTM) (x) 0.59 0.76 0.64 0.61 0.59 0.69 0.63 0.44 0.34 EV/EBIDTA (x) ROE (%) ROCE (%) D/E (x)

Andhra Bank Bank of Maha St Bk of Bikaner Dena Bank SBT St Bk of Mysore Vijaya Bank United Bank (I) Pun. & Sind Bank

5,013.84 3,558.76 3,034.15 2,993.01 2,588.25 2,582.66 2,581.76 1,957.86 1,483.48

3.89 5.27 4.26 3.83 4.32 6.33 5.80 6.56 4.81

11.81 13.01 12.48 13.03 12.22 12.31 12.72 13.49 11.32

19.3 16.8 16.4 17.6 14.9 11.6 11.9 7.5 9.2

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Position of the company in terms of Market share:

Corporate mission and objectives:

PERFORMANCE DURING THE LAST 5 YEARS AND EVALUATION OF VISION 2008 Performance in last 5 years The Banks performance in the last 5 years has been impressive in all major parameters with business doubling to reach Rs. 286000 crore in 2007-08. The Banks average growth in major parameters and achievement in the last 5 years is given below:

PARAMETERS Total Deposit Total Advances Operating Profit Net Profit Interest Income Non - Interest Income Gross NPA Net NPA Gross NPA (%) Net NPA (%) Cost of Deposits (%) Yield of Advances (%) Business Per employee Profit Per Employee (in lac) Return on Assets (%)

Mar, 04 87916 47224 3121 1109 7780 1867 4670 449 9.35 0.98 5.01 9.08 2.28 1.88 0.92

Mar, 05 103167 60413 2404 1410 8460 1676 3741 119 5.96 0.20 4.43 8.10 2.77 2.42 1.17

Mar, 06 119685 74627 2917 1439 9337 1521 3138 210 4.10 0.29 4.32 8.31 3.31 2.48 1.09

Mar, 07 139860 96597 3617 1540 11236 1730 3391 726 3.45 0.76 4.53 9.17 4.07 2.68 1.03

Mar, 08 166457 119502 4006 2049 14265 1998 3319 754 2.74 0.64 5.59 10.36 5.05 3.66 1.15

Dec, 08 197069 141659 4156 2225 14083 2064 3264 552 2.28 0.39 6.26 11.51 6.06 5.38 1.37

The Banks performance in relation to its past is commendable but still matching growth in areas like non-interest income, operating profit and overall NPA offer scope for further improvement.

Evaluation of Vision 2008 The Banks first Vision Document-VISION 2005 enabled the bank in successfully positioning itself. Projections under all parameters have not been only achieved but were surpassed as at end March 2005.

Encouraged with the success of Vision 2005, Vision 2010 was drawn to further consolidate the Banks strength and take it to greater heights. The Vision document 2010 had a Vision & a Mission statement as a guide, reflecting the corporate philosophy, perception and expectations of our Bank, which needed to be imbibed by each and every employee of the Bank.

The Vision 2010 document covering the period 2006-07 to 2009-10 was prepared based on an assessment of global economic outlook, likely trends of the Indian economy in general & banking in particular and the changing financial sector landscape. The objective was to set a horizon and allow our Bank to pro-actively plan and suitably position itself in the next 5 years.

Based on the Vision 2010 document, the achievement as on March 2008 vis--vis Vision 2008 is as under :

Vision 2008 vis--vis Achievement in Vision March 2008 March 2008: PERFORMANCE

Actual March 2008

PARAMETERS Deposit (Rs. Crore) Advances (Rs. Crore) Operating Profit (Rs. Crore) Return on Assets (%) Gross NPA to Gross Advances (%) Cost to Income Ratio (%) Business Per Employee (Rs. lac) CD Ratio Share of Deposit in the System (%) Share of Advances in the System (%) CRAR (%) Basel II 156000 95000 3800 1.30 3.00 49.00 430.00 60.90 6.00 5.50 13.00+ 166457 119502 4006 1.15 2.74 46.81 504.52 71.79 5.01 5.04 13.46

Bank was able to meet majority of the quantitative projections for March 2008, except for three parameters, i.e. ROA, Share of Deposit & Advances in the system. However, the ROA improved to 1.37% as at December 2008. Banks share of Deposits and Advances in the system, as on 16.01.09, improved to 5.23% and 5.22% respectively.

Recent Initiatives Taken by the Bank: The Bank in the recent past has moved away from a hybrid 4 tier to a 3 tier structure with a nomenclature of Circle Offices for the intermediate tier. The objective was to have a cost effective delayered structure to expedite decision making at all levels. Having taken aggressive IT initiatives, 100% CBS enabled Bank to centralize many activities thereby increasing the efficiency and productivity across the Bank. The activities are being centralized to transform the branches as points of sales for customer acquisitions, customer retention and better customer service. Bank proposes to set up one lac touch point to realize the target of 15 crore customers and 10 lac crore business figures by extensive deployment of technology. We expect to increase our branch network to 5000, Number of ATMs to 8000. The bank will engage 12,000 Business correspondents for existing branches; four such BCs will be attached to one branch (25000 touch points). Bank will set up 15,000 kiosks in branchless location with CBS and internet facility each kiosk will have four business correspondent attached to it (75,000 touch points). To further improve the customer service alternate delivery channels like ATMs and Internet banking are promoted and are enabled for Transfer of funds, bill payments, ticket booking, tax payment and donations to charitable organizations. E-bays have been set up for faster customer service. The Bank has been giving greater thrust towards Financial Inclusion, SME Business and Agriculture lending. The Bank has achieved 100% Financial Inclusion in 11,043 villages. The Bank is gearing up for Metro/Urban Financial Inclusion in a big way and is committed to cover unbanked rural & urban areas under its commitment to Financial Inclusion, both at geographical and functional levels. Rajasthan Govt. Financial Inclusion project has brought in more than 25 lakhs customers in our fold.

Several other Special Schemes have been launched for BPL Customers including a Micro Finance Branch in Mukundpur, Delhi; 9 Financial Literacy & Education Counselling Centres in Punjab & Haryana; Scheme for Rickshaw Pullers launched at Varanasi, Allahabad, Lucknow & Patna; Common Service Centre at Village Panapur Bihar. For Agriculture Sector we have introduced PNB Krishak Saathi Scheme, increased limit of loans without collateral to 1 lakh and introduced several other facilities to promote rural development. New products have been launched like MIBOR linked deposit schemes, Depository services, Gold Coin business; CMS, Score Based Lending Schemes, Centralization of backend activities etc. For faster processing of retail loans, separate Retail Processing Hubs have been set-up at centralized locations. Facility of submission of online application for Car, Education, Personal & Pension Loans is provided. Towards the objective of having a larger international presence, a subsidiary at UK has been made operational. A new branch of PNB IL has been made functional in Leicester, besides the existing two branches. The Bank also has a branch at Kabul; an Off-Shore Banking Unit at Mumbai; a new branch at Hongkong and Representative Offices at Dubai, Kazakhstan, Shanghai & Norway. The Bank has joint venture in Nepal with Everest Bank Limited. We are having arrangements with various exchange houses abroad. The technology solutions for all the overseas operations of the bank are provided from India, thereby ensuring cost effective services to the overseas clients. The Bank has launched two variants of Consumer credit card i.e. Gold and Classic. For customer convenience, host of features like photo card, SMS alerts and interface with PNBs Internet Banking are being offered. The credit card will be globally accepted. This card will be accepted at over 3.5 Lac merchant establishments and 30,000 ATMs in India as well as at over 29 million merchants establishments and over 1 million ATMs throughout the world who are linked to Visa Payment

Vision 2013: A Curtain Raiser

Any Vision is an attempt to qualitatively assess the emerging banking environment in the backdrop of global and domestic trend and tries to position ourselves in that scenario. It is not an attempt to predict what will happen in future, nor is it a forecast.

Vision represents aspiration levels, more importantly, the need to develop aspiration, structure, processes, people in an integrated way for sustainable growth in the future. Even though aspirations may change, the structure, process and people need flexibility for adapting to the dynamic, even changing competitive environment.

Our earlier Vision 2005 and 2010 were conservative, covered major parameters and macro strategies. A need was felt to have a Vision to stretch the Banks potential with well defined strategies. Accordingly, the honorable Board of Directors in the meeting held in Shimla in May 2008, proposed the concept of Vision 2013 and set goals which were to be achieved in the next 5 years to position the Bank as the Number One Bank in the country.

In this respect Vision 2013 is far more challenging, comprehensive and road map for our Bank in the future.


VISION & MISSION statements are powerful and give a strong message to all employees of an organization. Normally, they are static in nature but any large scale change in beliefs and thoughts would require suitable reorienting these statements. The new VISION & MISSION of the Bank is given below: VISION To be a Leading Global Bank with Pan India footprints and become a household brand in the Indo-Gangetic Plains, providing entire range of financial products and services under one roof. MISSION Banking for the unbanked


a) QUANTITATIVE DIMENSIONS Deposits to increase from Rs.166457 Crore in March 2008 to Rs.582000 Crore in March 2013, at an average growth of 32%. Advances to increase from Rs.119502 Crore in March 2008 to Rs.418000 Crore in March 2013, at an average growth of 28%. Total business to increase from Rs.285959 Crore in March 2008 to Rs.1000000 Crore in March 2013, at an average growth of 28%. Operating Profit to increase from Rs.4006 Crore in March 2008 to Rs.15000 Crore in March 2013 with a CAGR of 30.2%. Net Profit to increase from Rs.2049 Crore in March 2008 to Rs.7500 Crore in March 2013, at an average growth of 30%. The Return on Assets [RoA] to increase from 1.15% in March 2008 to 1.30% in March 2013 [This ratio is comparable to the RoA of the Peer Banks and is also better than all banks ratio of 1% as on March 08]. The Return on Equity [RoE] to increase from 19% in March 2008 to 21% in March 2013. Customer base to increase from 3.7 Crore in March 2008 to 15 Crore in March 2013. Number of touch points to be 100000 by March 2013. To have a rural coverage of 100000 villages in the Indo-Gangetic Plains by March 2013.




Crore] Mar 08

Mar 09

Mar 10

Mar 11

Mar 12

Mar 13


Particulars Total Business Deposits Advances Operating Profit Net Profit RoA RoE Number Customers Crore ] Rural Coverage Touch Points 55000 12000 70000 22000 75000 40000 85000 75000 100000 100000 [ 285959 166457 119502 4006 2049 1.15 19.00 of 3.7 In 360000 210000 150000 5650 2650 1.18 19.17 5 458500 262000 196500 6750 3450 1.23 19.91 6 604100 351500 252600 8700 4500 1.25 20.16 9 782500 457000 325500 10900 5800 1.27 20.62 11 1,000,000 28 582000 418000 15000 7500 1.30 21.00 15 28 28 30 30 -


A leader and front runner amongst nationalized banks o In Financial Inclusion o In all domestic operations o In adopting best risk management practices o In adopting global best practices in Corporate Governance & Corporate Social Responsibility o In HR policies to raise skills, morale and productivity

To be Global Bank o Among the top 3 Indian banks with global presence in Middle East, South East Asia, China, UK, Australia, Canada, etc. o Bring best global practices to effectively compete with global players in India.

Become a Universal Bank o Provider of complete range of financial services.

To be the most profitable bank amongst nationalized banks by focusing on : o Fee based income/off-balance sheet exposures o Mid Cap segment, Retail lending, SME Advances & Agriculture

o Reduction in Gross NPAs o Expenditure Control o Low cost deposits o Ensuring higher spreads (return on advances minus cost of deposits/funds)

Capitalize on IT initiatives o Provide more value added services o Expand reach of ATMs o Back Office Centralization of all CBS branches o Promote internet banking o Provide IT advisory services to other banks

Explore options of in-organic growth o Merger of Private/Public Sector Banks

Enlargement of customer base and retention of existing customers. Ensure smooth transition to adopting Basel II norms ahead of schedule. Develop robust Management Information System for better decision making & policy prescription. Further entrench brand image of the Bank.


Having completed the technology deployment with 100% CBS, Punjab National Bank (PNB) has envisioned ambitious growth targets for the next five years. The bank has been delivering reasonably good operational and financial performance over the last few years, despite some of the most challenging market conditions in the financial and credit markets for some time.

The banks last quarter (Q2) financial results amply displays that it continues on the impressive growth trajectory notwithstanding the impact of challenging credit market conditions.

Planning involves ex-ante co-ordination and conscious directions of activities with a view to achieving certain pre-specified objectives. The PNB Vision 2013 represents the aspiration level which is achievable but with appropriately and well defined strategies which need to be followed with zeal, enthusiasm and dedication by all.

Portfolio analysis:

PRODUCTS OFFERED BY PNB: Presently, it is the second largest bank of the country rendering a wide variety of banking services. 1. Centralized Banking Solution: CBS, an inter branch networking and data sharing platform helps to operate account from any city in India having CBS networked branches. Changing status from Customer of the branch to Customer of the bank, presently there are over 2616 CBS networked branches in 820 cities. 2. NRIs and Tourists:

Currency exchange services are being provided by PNBs exchange Bureaus spread throughout the country.
3. Online Tax Payment:

PNB provides the facility of online payment of service tax, excise duty, DGFT, custom duty and all charges under MCA.
4. Cash Management Service (CMS):

PNBs CMS facilitates management of receivables and payments in technology driven environment, ensuring availability of funds at reduced cost, helping reconciliation at multi location accounts besides providing customized MIS.
5. Mutual Funds and Insurance:

The bank has tied up with Principal Financial Group for providing Mutual funds and Insurance services and also tied up for distribution and marketing of UTI Mutual Funds.

6. NRI Services:

NRE, FCNR, RFC, NRO, Deposit a/c investment management and Housing Loan facilities for NRIs are available.
7. Foreign Exchange:

PNB has 150 branches authorized for handling foreign exchange business and these branches have been provided with SWIFT connectivity to ensure faster realization of funds.
8. e-MoneyIndia:

Send money to the loved ones in India through PNBs e-MoneyIndia service. Draft delivery across 4,038 locations and Bank Credit to over 2,500 branches in india.
9. Online railway reservation/ air ticket booking:

PNB offers online booking and information through IRCTC payment gateway. Just click and travel comfortably.
10. Depository Service:

PNB Depository service provides the facility of having shares and securities in Demat form and executes transactions of sales and purchase hassle free electrnically.
11. Lockers:

PNB offers locker services at all its branches.

12. Customer care facility:

PNB presents 24 hour, customer care facility.

13. PNB Gold Coin:

PNB gives opportunity to dazzle the well wishers, patrons, partners, and acquaintances with the mystical charisma of PNBs 999.9 fineness pure 24-carat gold coins and to convey the true value of treasured relationship. Enjoy guarantee of purity and weight of hallmarked gold coins.
14. Electronic Clearing Service (ECS) and Electronic Fund Transfer (EFT):

ECS provides quick movement of funds in a paperless mode and EFT ensures an expeditious transfer of funds using electronic media.
15. Wealth Management Service:

PNB provides customized financial advisory services for individuals that includes Mutual Funds, insurance, retirement planning, tax planning and debt management to customers for wealth maximization.
16. Online bill Payment:

PNB provides 24 hours, 365 days online payment of telephone, mobile, electricity and insurance bills etc., online.

SERVICES PROVIDED BY PNB: PNB offers financial solutions and services in an array of sectors. All these services that are offered keep pace with the changing market trends in order to fulfill the needs and preferences of the customers. Some of the well known sectors on which the main functions of the bank are based are: Personal banking o Savings fund account o Fixed deposit scheme o Current account o Loan services Corporate banking Agriculture finance services Industrial finance services Trade financial services International banking services

LOAN FACILITIES PROVIDED BY PNB: Car loan/ Two wheeler loan Loan against jewellery Traders loan available for: o Whole sellers o Dealers o Distributors o Individuals

o Firms o Registered cooperative societies o Companies o Purchase of shop/showroom. Housing loan Personal loans Corporate loans products such as: o Working capital o Term loan o Bank guarantee o Letter of credit etc. Educational loan PNB Gramin Chikitsak: schemes for financing qualified medical practitioners for setting up clinics in rural areas at concessional rate of interest. Loan to pensioners Loans to women o Mahila sashaktikaran abhiyaan o Mahila samriddhi yojana

Sector & Market Segment:

SWOT Analysis of PNB: Strengths: Fundamentally sound bank. 3.7 crore strong customer base. Well-entrenched Brand Image. Dominant position in Indo-Gangetic Plain No competition. A leader amongst Public Sector Banks. High proportion of customer base in deposits. Strong Risk Management Practices.

Redefined processes through technology initiatives like CBS, ATM, Internet Banking. 100% CBS branches. High tech platform incorporating EDW, CRM etc. Large network of branches with 66% in Rural & Semi-urban areas

Weaknesses: requires change in the mind-set of employees. Less flexibility in dealing with strategic HR & operational issues. Imbalance in distribution/ deployment of staff. . Predominant presence in less developed areas leading to high operating cost. Complacency (Structural & Environmental). Weak & Inconsistent MIS rendering decision making difficult. esence and Low NRI business. More dependence on conventional low margin business. No Income from Financial Products such as Insurance, Mutual Fund, Credit Card etc. .

Opportunities: of finance being about 20%. Great opportunity for expanding business with over 60% population outside the banking service net. IT Initiative creating a back bone for increasing reach. It provides an opportunity to go beyond the Brick & Mortar. Bank has a visionary leadership which can transform the bank. Rural India is the next growth horizon with an opportunity 3 times the size of Urban India. -cut opportunity with overall exposure to formal services

Large workforce of 55398 employees. Each and every employee has to believe we can do it, usher in change in our attitudes/conventional wisdom, be a learner willing to adapt to the changing banking environment.

Threats: Aggressive marketing by competitor banks. Expansion of peer Banks/Private Sector Banks in Indo-Gangetic belt eroding our dominance. Loss of savings business to Mutual Fund/ Insurance Products which are aggressively marketed as being more remunerative. Technological parity of competitor banks. Aggressive strategy and innovative products, larger risk appetite of other banks