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Organizations Profile
Name of organization
Head Office
"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"
Origin
Punjab under the British especially after annexation in 1849 witnessed a period of rapid
development giving rise to a new educated class fired with a desire for freedom from the yoke
of slavery. Amongst the cherished desires of this new class was also an overriding ambition to
start a Swadeshi Bank with Indian Capital and management representing all sections of the
Indian community. The idea was first mooted by Rai Mool Raj of Arya Samaj who, as
reported by Lala Lajpat Rai, had long cherished the idea that Indians should have a national
bank of their own. He felt keenly "the fact that the Indian capital was being used to run
English banks and companies, the profits accruing from which went entirely to the Britishers
whilst Indians had to contend themselves with a small interest on their own capital".
At the instance of Rai Mool Raj, Lala Lajpat Rai sent round a circular to selected friends
insisting on an Indian Joint Stock Bank as the first special step in constructive Swadeshi. Lala
Harkrishan Lal who had returned from England with ideas regarding commerce and industry,
was eager to give them practical shape.
'PNB was born on May 19, 1894. The founding board was drawn from different parts of India
professing different faiths and a varied back-ground with, however, the common objective of
providing country with a truly national bank which would further the economic interest of the
country.
The Bank opened for business on 12 April, 1895. The first Board of 7 Directors comprised of
Sardar Dayal Singh Majithia, who was also the founder of Dayal Singh College and the
Tribune; Lala Lalchand one of the founders of DAV College and President of its Management
3
Society; Kali Prosanna Roy, eminent Bengali pleader who was also the Chairman of the
Reception committee of the Indian National Congress at its Lahore session in 1900; Lala
Harkishan Lal who became widely known as the first industrialist of Punjab; EC Jessawala, a
well known Parsi merchant and partner of Jamshedji & Co. of Lahore; Lala Prabhu Dayal, a
leading Rais, merchant and philanthropist of Multan; Bakshi Jaishi Ram, an eminent Civil
Lawyer of Lahore; and Lala Dholan Dass, a great banker, merchant and Rais of Amritsar. Thus
a Bengali, Parsi, a Sikh and a few Hindus joined hands in a purely national and cosmopolitan
spirit to found this Bank which opened its doors to the public on 12th of April 1895. They
went about it with a Missionary Zeal. Sh. Dayal Singh Majithia was the first Chairman, Lala
Harkishan Lal, the first secretary to the Board and Shri Bulaki Ram Shastri Barrister at
Lahore, was appointed Manager.
A Maiden Dividend of 4% was declared after only 7 months of operation. Lala Lajpat Rai was
the first to open an account with the bank which was housed in the building opposite the Arya
Samaj Mandir in Anarkali in Lahore. His younger brother joined the Bank as a Manager.
Authorised total capital of the Bank was Rs. 2 lakhs, the working capital was Rs. 20000. It had
total staff strength of nine and the total monthly salary amounted to Rs. 320.
The first branch outside Lahore was opened in Rawalpindi in 1900. The Bank made slow, but
steady progress in the first decade of its existence. Lala Lajpat Rai joined the Board of
Directors soon after. in 1913, the banking industry in India was hit by a severe crisis following
the failure of the Peoples Bank of India founded by Lala Harkishan Lal. As many as 78 banks
failed during this crisis. Punjab National Bank survived. Mr. JH Maynard, the then Financial
Commissioner, Punjab, remarked...."Your Bank survived...no doubt due to good
management". It spoke volumes for the measure of confidence reposed by the public in the
Bank's management.
The years 1926 to 1936 were turbulent and loss ridden ones for the banking industry the world
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over. The 1929 Wall Street crash plunged the world into a severe economic crisis.
It was during this period that the Jalianwala Bagh Committee account was opened in the
Bank, which in the decade that followed, was operated by Mahatma Gandhi and Pandit
Jawaharlal Nehru. The five years from 1941 to 1946 were ones of unprecedented growth.
From a modest base of 71, the number of branches increased to 278. Deposits grew from Rs.
10 crores to Rs. 62 crores. On March 31, 1947, the Bank officials decided to leave Lahore and
transfer the registered office of the Bank to Delhi and permission for transfer was obtained
from the Lahore High Court on June 20, 1947.
PNB was then housed in the precincts of Sreeniwas in the salubrious Civil Lines, Delhi. Many
a staff member fell victim to the widespread riots in the discharge of their duties. The
conditions deteriorated further. The Bank was forced to close 92 offices in West Pakistan
constituting 33 percent of the total number and having 40% of the total deposits. The Bank,
however, continued to maintain a few caretaker branches.
The Bank then embarked on its task of rehabilitating the displaced account holders. The
migrants from Pakistan were repaid their deposits based upon whatever evidence they could
produce. Such gestures cemented their trusts in the bank and PNB became a symbol of Trust
and a name you can bank upon. Surplus staff posed a big problem. Fast expansion became a
priority. The policy paid rich dividends by opening up an era of phenomenal growth.
In 1951, the Bank took over the assets and liabilities of Bharat Bank Ltd. and became the
second largest bank in the private sector. In 1962, it amalgamated the Indo-Commercial Bank
with it. From its dwindled deposits of Rs. 43 crores in 1949 it rose to cross the Rs. 355 crores
mark by the July 1969. Its number of offices had increased to 569 and advances from Rs. 19
crores in 1949 to Rs. 243 crores by July 1969 when it was nationalised.
Since inception in 1895, PNB has always been a "People's bank" serving millions of people
throughout the country and also had the proud distinction of serving great national leaders like
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Sarvshri Jawahar Lal Nehru, Gobind Ballabh Pant, Lal Bahadur Shastri, Rafi Ahmed Kidwai,
Smt. Indira Gandhi etc. amongst other who banked with us.
Punjab Keshari Lala Lajpat Rai (Saluting the spirit of our founding father)
(1865-1928)
movement made for progress, Lala Lajpat Rai identified himself very closely with Arya
Samaj, in which he found ample scope for the exercise of his patriotism, philanthropy and
religious zeal.
Having qualified as a pleader, Lala Lajpat Rai started practice at Hissar and soon became a
leading lawyer of the district. He organized the Arya Samaj there and put it on proper lines. In
1892, he transferred his practice to the wider field at Lahore.Education, both secular and
religious, was in Lala Lajpat Rais view an important factor in national development. He took
part in the foundation of the D.A.V. College at Lahore.
Lalaji and Politics
Lala Lajpat Rai always felt drawn towards politics. It was in 1888 that he joined the Indian
National Congress when it met at Allahabad under the presidency of Mr. G. Yule. In 1905, the
Indian National Congress Committee having recognized in him an austere, sincere and selfless
devoted worker selected him as one of its delegates to place before the British, the political
grievances of the Indian people. He met the expenses of his trip from his own pocket. He
along with Gokhale carried on the political campaign in various parts of England and brought
home to the mind of the British, the evils of an unsympathetic and bureaucratic government
under which India was labouring and pleaded in eloquent language, adding facts and figures in
supporting their contention, cause of the half starving and half dying people of India. Lala
Lajpat Rai created an impression on the English Populace.
After his return from England, he was busy devising and organizing ways and means for
political advancement and industrial emancipation of the country.
The movement of Swadeshi was in the offing and he put his heart and soul into it. He
preached the message of Swadeshi to the people of Punjab and made it very popular. This
naturally enraged the bureaucracy and he came to be regarded as a revolutionary by the
Britishers and the Anglo-Indian press. He was openly dubbed as a Revolutionary and an
7
itself. The fourteen original shareholders and seven directors took only a modest number of
shares; the control of the Bank was to lie with the large, dispersed shareholders, a purely
professional approach that was as uncommon then as it is today.
Heritage : Saga of Excellence in Banking
Fired by the spirit of nationalism and founded on the idea that Indians should have a national
bank of their own, Punjab National Bank Ltd was the result of the efforts of far-sighted
visionaries and patriots, among whom were persons like Lala Lajpat Rai, Mr. E C Jessawala,
Babu Kali Prasono Roy, Lala Harkishan Lal and Sardar Dyal Singh Majithia. Incorporated
under the Act VI of 1882, Indian Companies Act, the Bank commenced operations on April
12, 1895 from Lahore, with an authorised total capital of Rs 2 lac and working capital of Rs
20,000. Prophetically, the Bank chose "Stability" as its telegraphic address, as the future
course of events were to prove - the Bank withstood various financial crises including the
trauma in the form of partition of India when the Bank had to close 92 offices (33%) in west
Pakistan which constituted 40% of its deposits and 15 of its staff fell victims to the frenzy. The
registered office was shifted to Delhi and the Bank honoured all the deposit claims of the
refugees even on the basis of whatever little evidence they could produce. Subsequently, the
Bank registered impressive performance and grew from strength to strength.
A pioneer throughout, the Bank distinguished itself by appointing auditors in 1895 long before
it was mandatory; introduced the "teller" system in 1944 (another first ); established profit
sharing bonus, provident fund and voluntary outside audit well before they formed keystones
of good management.
Nationalisation came in 1969 which unleashed a new chapter in the long history of the Bank.
Keeping with the economic ideology of catalyzing development and amelioration of poverty
by funding various self-employment schemes, PNB expanded its presence rapidly in
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unbanked areas. The Bank donned the role of a facilitator in providing the vital input of credit
and consistently exceeded the national goals in respect of priority sector lending. With its
large presence throughout the country and with a view to strengthening the rural credit
delivery system, the Bank sponsored Regional Rural Banks (RRBs).
PNB has established itself firmly as one of the premier banking institutions in the country with
a long tradition of sound and prudent banking. The bank's growth has been aided by takeover/merger of 7 private sector banks during different periods in its history. The first ever and
the only merger of a nationalized bank with PNB was in 1993, viz., New Bank of India.
By late 1980s when the first whiff of liberalization came about, the Bank initiated strategic
moves towards diversification; and in 2002, 20% of government ownership was disinvested
through a very successful IPO to the public. In 2003, the erstwhile Nedungadi Bank Ltd (eNBL), a Kerala based private bank was amalgamated with Punjab National Bank. This was
the seventh merger in PNBs history of more than 115 years. PNBs management team has
been quite successful in managing the mergers and ensuring the integration process in a
smooth and effective manner. It may be added that no other bank in the nationalized bank
group has a track-record of so many mergers. This has improved the franchise value of the
Bank, particularly, in the relatively underrepresented Kerala region. In order to meet future
capital requirements on account of implementation of Basel II norms, in March 2005, the
Bank came out with Follow-on Public Offer (FPO) through the book building process,
reducing the shareholding of Govt of India to 57.8%.
Punjab National Bank with more than 5400 domestic offices including Extension Counters has
the largest network amongst the nationalized banks i.e. next only to SBI. The bank has a
strong franchise value and provides a host of financial products and services, both to the retail
customer and corporate business. It has continued to fulfill its social responsibilities and made
significant progress in adoption of technology, keeping with its objective of transforming itself
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11
Subsidiaries:
A. Domestic:
Country of
Proportion of ownership
Incorporation
PNB Gilts Ltd.
India
PNB Housing Finance Ltd.
India
PNB Investment Services Ltd.
India
PNB Insurance Broking Pvt.
India
Ltd.#
%
74.07
51.01
100
81
# PNB Insurance Broking Company is non-functional. The Broking licence has been
surrendered and steps are being initiated for winding-up of the Company.
Domestic Subsidiaries
1. PNB GILTS LTD.
PNB Gilts Ltd., a subsidiary of the Bank, is engaged in the business of trading in Govt.
securities, treasury bills and Non SLR Investments. It is also engaged in dealing in Money
Market Instruments (Call/Notice/Term Money, Repo /Reverse Repo, Inter-corporate
Deposits, Commercial Paper, Certificate of Deposit) and Mutual Funds Distribution. The
company is listed at NSE and BSE.
2. PNB HOUSING FINANCE LTD
PNB Housing Finance Ltd. is engaged in providing housing loans for purchase, construction
and up gradation of a dwelling unit. The company offers Loans for construction or for
purchase of house/flat from development authorities and also from private builders/ group
housing societies as well as for renovation/ repairs. Company also provides finance for
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construction of residential projects. Loans to NRIs are also provided for purchase/
construction of house/ flat along with a resident/ non-resident co-borrower.
3. PNB INVESTMENT SERVICES LTD
PNB Investment Services Ltd, a wholly owned subsidiary, has been set up by the Bank for
carrying out Merchant Banking Business. It provides services for Project Appraisal, Loan
Syndication, Debt Placement and to executes IPOs/FPO/QIPs. PNBISL is registered with
SEBI as a Category- I Merchant Banker.
4. PNB INSURANCE BROKING Pvt. Ltd.
The Bank is holding majority stake in above company, jointly with Vijaya Bank, minor
shareholder.
Domestic Joint Ventures
The Bank has the following Joint Ventures:
1.
2.
B. International:
Sr. No
Country of
Proportion of
incorporation
United
ownership
100%
Kingdom
Bhutan
Kazakhstan
Ltd.
2
3
51%
84.375%
13
A. Domestic:
Sr. No.
Proportion of
ownership
1
2
3
4
5
6
7
8
35%
35%
35%
35%
35%
21.38%
30%
30%
B. Outside India:
Sr.
Country of
Proportion of
incorporation
Nepal
ownership
20%
No
1
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 (4668 including 238 extension counters
14
and 3 overseas offices).During the FY 2008-09, with 39% share of low cost deposits, 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 as per Basel II
at 14.03% with Tier I and Tier II capital ratio at 8.98% and 5.05% respectively as on
March09. As on March09, the Bank has the Gross and Net NPA ratio of only 1.77% and
0.17% respectively. During the FY 2008-09, its ratio of priority sector credit 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%.
Present Status of the Organization
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. Alongwith 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 Nationalised 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 Banks mission is Banking for Unbanked. 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, diary farmers, construction
workers, etc.
The Bank has already achieved 100% financial
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
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Parameters
Operating Profit*
Net Profit*
Deposit
Mar'07
3617
1540
139860
Mar'08
4006
2049
166457
Mar'09
5744
3091
209760
CRAR
26.02
41.67
22.47
Advance
Total Business
96597
236456
119502
285959
154703
364463
26.55
24.15
(Rs. In Crores)
* Respective figure for the corresponding financial year
Human Source
Sales & Marketing
Retailing
Treasury Management
Information Technology
Current Accounts
Smart Romer
PNB Vaibhav
PNB Gaurav
Anupam account
Credit schemes
Housing loan
Car finanace
Personal loan
Professional loan
Social Banking
Farmers
Krishi card
Women
Savings Accounts
TOTAL FREE DOOM SAVING FUNDS SALARY ACCOUNT
Purpose: To offer an attractive Saving Fund Account to Corporate Employees for enabling
them to have their Salary Credited as well as availing overdraft facility up to Rs. 15,000/- or
the last salary credited in the account whichever is lower, at our interest rates applicable to
18
Personal Loans to employees, it would be adjustable in bullet repayment at the time of next
salary credit
ELIGIBILITY: OF THE EMPLOYEE AS WELL AS CORPORATES UNDER TIE-UP
ARRANGEMENT:
The employee whose salary account is being opened should be a permanent
The minimum number of accounts to be opened should be 25 or 75% of the
permanent employees of the corporate (in that location),
employee.
strength of the
whichever is lower.
loans to be
balance certificate,
etc;
Free of Cost maintenance of Demat Account (we shall be waiving the charges
by PNB as annual fee, charges payable to NSDL would be
to be earned
basis
Eligibility
Accounts can be opened in the name of students who have attained the age of 10 years and above,
studying at VARIOUS RECOGNISED EDUCATIONAL INSTITUTIONS.
Initial Deposit Amount/ QAB/Minimum Balance Required
Zero
Overdraft Facility
The overdraft facility shall be given to students (of reputed educational institutions only) who are
staying away from their parents. It would be made available on the request of the student with the
UNDERTAKING TO PAY/ CONSENT LETTER from earning parents/natural guardian/local guardian
of student. In the first year of opening of account, the facility would be available up-to a maximum limit
of Rs.5,000/-. Subsequent to the satisfactory conduct of the account, in second year it could be enhanced
upto Rs. 10,000/-. Other terms & conditions of this overdraft facility would be as under:
Rate of Interest
The overdraft facility would attract at the rate of interest as applicable to
Age of Student
Purpose
Repayment
Recovery Aspects
Attractive Freebies/Concessions
The following freebies are also admissible:
Demand drafts for all types
Free of cost
of fees/examination fees
Initial Deposit Amount
Incidental Charges
Ledger Folio Charges
Retail
Internet
Services
Intersol transactions
Banking
including Free
cash withdrawal/deposits
ATM Card/DEBIT CARD
Cheque Book Facility
opening
ZERO
of
account
MINIMUM
with
just
BALANCE
Rs.25/-,
requirement;
Our Bank would allow first 50 transactions in a calendar year Free of Charge,
thereafter
charge
of
Rs.10/-
per
transaction
would
be
levied.
Customer would not be allowed to keep balance in this account (taken together
with all
other accounts with our Bank) more than Rs.50,000/- in this account
in
view
of
related
KYC
Norms;.
ii.
Free Debit Card (slated to be introduced by the Bank shortly-publicity on this aspect
will begin only after launch)
iii.
Free remittance of funds upto an extant of Rs. 25000/- per month at any of our
branches having connectivity under CBS.
22
iv.
One Cheque book of 50 leaves free of cost per quarter to be issued (inclusive of item
no. xii)
v.
vi.
vii.
Free collection of one outstation cheque (issued in favour of customer) per quarter
upto Rs. 10000/-(however, out of pocket expenses shall be recovered)
viii.
ix.
x.
xi.
Transaction i.e. T + 3 Days' Credit for outstation cheques drawn on other bank
branches at locations where we have at least one PNB branch under CBS connectivity.
xii.
If possible, Free Special Cheque Book (under relevant MICR Code) shall also be
issued to customers enabling them to make payment by cheque to outstation parties at
CBS centers.
PNB VAIBHAV ACCOUNT
Features
Quarterly average balance required
Initial Deposit Amount required for opening of the account.
Non-maintenance charges
Free
(of
transaction
charges)
Transactions allowed
Transaction charged/L.F. charges
Inter
sol
transfer
Local non-base branches
Inter
sol
transfer
charges
Free
Free
charges- Free
NSDL)
Rebate on Locker Rent (of any size)
Internet Banking Services
Debit-cum-ATM Card
RTGS Services
Personalised Multi-City Cheque Book
Stop Payment Instruction charges
Interest/Balance certificate
Cash Withdrawals/Deposits charges at Local Non-Base
sol
transfer
transfer
transaction.
Free
charges
on normal charges.
25% discount on normal charges
Upto 2 in a month
Free on Quarterly basis
20% discount on normal charges.
50% concessions on normal
charges.
De-mat A/c Charges (except charges to be paid by Ban to First Year Free
NSDL)
Rebate on Locker Rent (of any size)
locker
Free
Free
24
Cash Withdrawals/Deposits charges at outstation Non- Rs.50,000/- per day, thereafter 25%
Base Branches, free upto
discount on normal charges
Charges on payment of outstation Multicity Cheques, Rs.50,000/-per day, thereafter
Free upto
25%
A Multi-Option Fixed Deposit Scheme that fit your needs, timing & resources, to match your
convenience
Period of Deposit: (a) Maturity Option: For any period from 15 days to 120 monthsFor a single Term Deposit less than Rs. 15 lac and for any period from 7 days to 120
months-For
single
Deposit
of
Rs.
15
lac
&
above.
(b) Income Option: For any period from 6 months to 120 months.
For an amount of Rs. 10,000/- and above overdraft with cheque book facility is
available, to enable use of deposits. The customer shall also be at liberty to make use
of the facility through ATM-cum-Debit Card under 'Anywhere-Anytime Banking'. It
will enable customers to have freedom to utilise their Fixed Deposits as and when
needed without even coming to the Bank. The interest is chargeable only for the
amount and period for which the overdraft facility has been availed; The illiterate and
blind persons can also open the account without exercising the option of Overdraft
Facility.
Margin and rate of interest on Loans against deposits under the scheme shall be as per
prescribed guidelines which shall be subject to modifications from time to time
RTGS S
Stop Pa
Interest
ANUPAM ACCOUNT
Our Bank has several Domestic Deposit Schemes designed to cater to the needs of
various segments of customers to meet your specific requirement.
The features of the Anupam Account Deposit Scheme are as under:
1. Participation
Anupam Account Scheme may be opened in the name of individual(s), sole
proprietorship concern, partnership firm, association, trust, Ltd. Company etc.
However, Anupam Account shall not be opened in the name of a minor, illiterate and
blind persons.
2. Minimum Initial Deposit
Rs.10,000/- and thereafter in multiples of Rs.1000/- thereof.
3. Period of Deposit
For any period from 6 months to 120 months. Existing deposits under Multi Benefit
Deposit Scheme for Rs.10,000/- and above with unexpired term of 6 months or more
are eligible for transfer to Anupam Account Scheme.
4. Overdraft Facility
26
Overdraft facility shall be permitted through a Current Account and a Cheque Book
will be issued to the depositor on the same day.
The margin on the amount of overdraft against the deposit is
For Public
Maturity Period remaining at the time of granting
overdraft
Margin
Upto 2 years
5%
7.5%
10.0%
12.5%
Above 5 years
25%
9. Withdrawable in multiples of Rs.1000/You may withdraw any amount before maturity anytime as well in multiples of
Rs.1000/- any time according to your convenience without breaking the entire deposit
and also without losing interest on remaining part of Fixed Deposit Receipt under the
Scheme.
It entitles you to earn interest at term deposit rates on quarterly compounding basis.
You may open with any amount with a minimum deposit of Rs.1000/- for any
period from 6 months to 120 months.
You can avail the additional facility of automatic renewal of fixed deposit with or
without interest on maturity.
On demand, Loan in this MBFD scheme is also made available by us.
Account can be opened with a minimum monthly deposit of Rs.100/or its multiples for a period of 6 months to 120 months in multiples
of 3 months.
Interest at term deposit rates is computable on quarterly compounded
basis
The small monthly savings in the Recurring Deposit scheme enable
you to accumulate a handsome amount on maturity.
28
Credit Scheme
Housing Loan
Car Loans
Own a vehicle with the friendliest and most convenient car loan. Either you can
purchase a new Car/ Van/ Jeep or raise loan to purchase old vehicles that are not
older than 3 years. Finance will be provided for purchase of vehicle of indigenous/
foreign makes.
Individuals as well as Business Concerns (Corporate or non-corporate).
For Individuals: 25 times of the monthly net salary OR Rs.15 lac, whichever is
lower. Income of spouse can be taken into account for determining loan amount. In
such cases, the spouse shall stand as a guarantor.
For Business Conerns: No ceiling on loan amount.
The vehicle purchased with the amount of loan is to be hypothecated to the Bank. It
will be registered in the name of the borrower jointly with the Bank.
BSF,
CRPF,
CISF,
ITBP
ii) Confirmed/ permanent employees of Central/ State Govt/ PSUs and all reputed
companies/ Institutions, who are drawing their salary through accounts maintained
with
Employees
our
of
above
branches.
categories
under
check-off
facility
iii) Professionally qualified Doctors viz. MBBS, BDS & above having annual
income
of
Rs.4.00
lac
&
above.
Rs.15000
per
month
for
eligible
customers
at
Metro
Centres;
- Rs.10000 per month for eligible customers at Semi-Urban and Rural Centres.
However, for Teachers, Army Jawans, other permanent employees of Military
Station Headquarters and Para Military Personnel whose salary is being credited and
30
disbursed through our branches the minimum Net Monthly Income criteria shall be
Rs.7500/- at all Centres viz. Metro, Urban, Semi-Urban and Rural.
Term Loan/ Overdraft Minimum amount of loan will be Rs.50,000/- and maximum
amount of loan Rs.4,00,000/- or 20 times monthly net salary, whichever is lower,
depending upon the repaying capacity.
Term
Loan:
for
appropriation
in
the
loan
account).
Where the employer agrees to check off facility, at least one PDC to be obtained.
In case of Army Officers :
S.Urban/Rural Area
32
1. Medical practitioners
Rs 5.00 lac
Rs 10.0 lac
2. Other professionals
Rs 5.00 lac
Rs
5.00 lac
should
approach
the
branch
nearest
to
the
place
of
domicile.
Interest is charged monthly on simple basis during the repayment holiday/moratorium period
& concession of 1% in rate of interest is allowed provided the same is serviced regularly
33
during study period. Punjab National Bank has tied up with Kotak Mahindra Insurance to
provide life insurance cover for Student borrowers.
Need based finance, subject to repaying capacity of the parents / students with margin and the
following ceilings :For studies in India: Maximum Rs.10.00 lacs.
For studies abroad: Maximum Rs.20.00 lacs.
Nil.
Above Rs.4.00 lacs:
Studies in India
Studies Abroad
Reimbursement of related expenses such as admission fee, monthly fee,
5%
15%
Scheme seeks to provide finance against mortgage of immovable property situated in Metro/
Urban/ Semi Urban centres. The scheme is designed to offer instant solutions relating to
business needs or for personal needs such as, children's higher education, travel, daughter's
marriage, medical emergencies, etc. Loan is, however, not available for speculative purpose.
Eligibility
For Individuals
Minimum net monthly salary/ net annual income of Rs.10,000/ Rs.1,20,000/- for
salaried and for other income tax assesses respectively
Net annual income should be double that of total EMIs for the year
Net income/ profit should be 1.5 times that of total EMIs for the year
Car,
Personal
or
Education. At the same time, such individuals/ including joint owners should have adequate
capacity to regularly service such loans.
4. PURPOSE
Finance will be allowed for:
Meeting
need
based
requirement
of
purchase
construction
/addition
6. MARGIN
10% except when loan is availed for Personal and or Educational needs in which case it shall
be Nil.
7. RATE OF INTEREST
Housing TENOR
For
loans
repayable
in/upto
i) Upto 5 years
7.75
8.25
9. MODE OF DISBURSEMENT
As per extant guidelines of specific schemes viz. Housing, Car, Personal and Education.
However, No charges for issue of Demand Draft /Bankers cheques are to be levied.
10. INSURANCE
Comprehensive Insurance Policy to be obtained where loan is allowed for Housing and Car
needs.
11. SECURITY:
Housing
Equitable/ Registered Mortgage of the House/Flat/ Plot Financed.
Obtention of pari passu or second charge over the property mortgaged in favour of other
Lender in situations where senior authorities consider requests and allow loan only to
confirmed employees of Central / State Govts. / Public Sector Undertakings, who have raised
funds for construction / acquisition of accommodation from other sources and need
supplementary finance, for an amount of loan of maximum upto Rs. 20 lacs, which, however,
should be for a minimum of Rs. 2lacs as prescribed above.
Car
Hypothecation of the Vehicle financed.
Equitable mortgage should be for the total amount of loan.
12. GUARANTEE
Suitable guarantee acceptable to the Bank may be obtained which may also include guarantee
from family members/other relatives.
13. UPFRONT & DOCUMENTATION CHARGES
Flat Upfront charges of Rs.2,500/- & no documentation charge.
38
issues
&
points
challenges
in
the
growth
discussed
in
of
the
this
retail
banking
report
sector.
are:
-What
are
the
regulatory
factors
involved
in
Indian
banking
industry?
- How interest rate risks, money laundering, and outsourcing are affecting the performance
of banking sector?
- What would be the impact of Basel-II norms in Indian banking industry?
- How the banking industry would combat the competition from upcoming sectors like
mutual
funds?
- What are the various issues and challenges before this industry?
With a jump in the Indian economy from a manufacturing sector, that never really took off, to
a nascent service sector, Banking as a whole is undergoing a change. A larger option for the
consumer is getting translated into a larger demand for financial products and customisation
of services is fast becoming the norm than a competitive advantage.
With the Retail banking sector expected to grow at a rate of 30% [Chanda Kochhar, ED,
ICICI Bank] players are focussing more and more on the Retail and are waking up to the
potential of this sector of banking. At the same time, the banking sector as a whole is seeing
structural changes in regulatory frameworks and securitisation and stringent NPA norms
expected to be in place by 2004 means the faster one adapts to these changing dynamics, the
faster is one expected to gain the advantage. In this article, we try to study the reasons behind
the euphemism regarding the Retail-focus of the Indian banks and try to assess how much of
it is worth the attention that it is attracting.
Potential for Retail in India: Is sky the limit?
The Indian players are bullish on the Retail business and this is not totally unfounded. There
are two main reasons behind this. Firstly, it is now undeniable that the face of the Indian
consumer is changing. This is reflected in a change in the urban household income pattern.
The direct fallout of such a change will be the consumption patterns and hence the banking
habits of Indians, which will now be skewed towards Retail products. At the same time, India
compares pretty poorly with the other economies of the world that are now becoming
comparable in terms of spending patterns with the opening up of our economy. For instance,
while the total outstanding Retail loans in Taiwan is around 41% of GDP, the figure in India
stands at less than 5%. The comparison with the West is even more staggering. Another
comparison that is natural when comparing Retail sectors is the use of credit cards. Here also,
the potential lies in the fact that of all the consumer expenditure in India in 2001, less than
1% was through plastic, the corresponding US figure standing at 18%.
40
procedure against consumers creating bad debt is virtually nonexistent. Finally, the vast
geographical and cultural diversity of the country makes credit policy formulation a tough job
and it simply cannot be dictated from a Wall Street or a Singapore boardroom! All these add
up to the unattractiveness of the Indian retail market to the foreign players. So over the past
few years, in spite of the entry of MNCs in many industries, Retail Banking has seen a flurry
of panicky exits. Fewer than 40 remain in India and their share of total bank assets currently
7.2% is falling. Those that remain might be thought to be likely buyers of Indian banks. Yet
Citibank, HSBC and Standard Charteredall in India for more than a century, and with
relatively large retail networksseem to have no pressing need to acquire a local bank.
Established foreign banks have preferred to take over customers or businesses from other
foreign banks that want to leave. Thus HSBC, in recent years, has acquired customers from
France's BNP, Germany's Deutsche Bank and Japan's Bank of Tokyo-Mitsubishi. ABN Amro
took over Bank of America's retail business.
So all for the keeping then?
This will perhaps be the most wrongful inference that can be drawn from the above. We just
cannot afford to look inwards and repeat the mistakes that were the side effects of the
Nationalization of the Banking System. A growing market can never be an alibi for lack of
innovation. Indian banks have shown little or no interest in innovative tailor-made
products.They have often tried to copy process designs that have been tested, albeit
successfully, in the West. Each economic culture has its own traits and one who successfully
adapts those to the business is the eventual winner. A case in point is the successful
implementation of micro-credit networks in Bangladesh. Positioning a bank as a tech-savvy
financial vendor in a country where Internet penetration is an abysmal 1.65% can only add to
the over-leveraging as pointed out earlier. The focus of the sector should remain in
macroeconomic wealth creation and not increasing the per capita indebtedness that will do
little but add to the NPA burden. Retail Banking in India has to be developed in the Indian
way, notwithstanding the long queues in front of the teller counter in the SBI Joka branch!
Awards
42
44
45
Mar '12
Mar '11
Mar '10
12 mths
12 mths
12 mths
12 mths
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Mar
353.47
353.47
0.00
0.00
32,323.43
32,676.90
391,560.06
39,620.92
431,180.98
15,019.15
478,877.03
Mar '13
339.18
339.18
0.00
0.00
27,477.89
27,817.07
379,588.48
37,264.27
416,852.75
13,524.18
458,194.00
Mar '12
316.81
316.81
0.00
0.00
21,191.75
21,508.56
312,898.73
31,589.69
344,488.42
12,328.27
378,325.25
Mar '11
315.30
315.30
0.00
0.00
15,915.63
16,230.93
249,329.80
19,262.37
268,592.17
10,317.69
295,140.79
Mar '10
'14
12
12 mths
12 mths
12 mths
12 mths
'14
12
mths
Capital and Liabilities:
Total Share Capital
Equity Share Capital
Share Application Money
Preference Share Capital
Reserves
Net Worth
Deposits
Borrowings
Total Debt
Other Liabilities & Provisions
Total Liabilities
mths
Assets
Cash & Balances with RBI
Balance with Banks, Money at
0.00
0.00
17,886.25
9,249.13
18,492.90
10,335.14
23,776.90
5,914.32
18,327.58
5,145.99
Call
Advances
Investments
Gross Block
Revaluation Reserves
Accumulated Depreciation
Net Block
Capital Work In Progress
Other Assets
Total Assets
Contingent Liabilities
Bills for collection
Book Value (Rs)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
308,725.21
129,896.19
3,357.68
0.00
0.00
3,357.68
0.00
9,762.58
478,877.04
231,810.55
0.00
924.45
293,774.76
122,629.47
3,168.86
0.00
0.00
3,168.86
0.00
9,792.88
458,194.01
224,750.05
0.00
820.13
242,106.67
95,162.35
3,105.60
0.00
0.00
3,105.60
0.00
8,259.42
378,325.26
138,915.26
0.00
678.91
186,601.21
77,724.47
4,215.21
1,491.99
1,701.74
1,021.48
0.00
6,320.07
295,140.80
68,124.47
33,215.78
514.77
46
47
Mar '13
Mar '12
Mar '11
Mar '10
12 mths
12 mths
12 mths
12 mths
0.00
0.00
0.00
41,893.33
4,215.92
46,109.25
36,428.03
4,202.60
40,630.63
26,986.48
3,612.58
30,599.06
21,466.91
3,565.31
25,032.22
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Mar
27,036.82
5,674.72
8,331.53
318.50
0.00
8,165.05
6,159.70
41,361.57
Mar '13
23,013.59
4,723.48
7,717.10
292.26
0.00
7,002.75
5,730.09
35,746.43
Mar '12
15,179.14
4,461.10
6,269.47
255.85
0.00
6,364.22
4,622.20
26,165.56
Mar '11
12,944.02
3,121.14
4,838.88
222.83
0.00
5,761.36
2,421.49
21,126.87
Mar '10
'14
12
12 mths
12 mths
12 mths
12 mths
mths
0.00
0.00
0.00
0.00
0.00
0.00
0.00
4,747.67
0.00
0.00
4,747.67
0.00
954.38
162.20
4,884.20
0.00
0.00
4,884.20
0.00
746.19
121.05
4,433.50
0.00
0.00
4,433.50
0.00
696.99
113.07
3,905.36
0.00
7.64
3,913.00
0.00
693.67
116.43
0.00
0.00
0.00
134.31
270.00
924.45
144.00
220.00
820.13
139.94
220.00
678.91
123.86
220.00
514.77
0.00
0.00
0.00
3,631.10
-0.01
1,116.58
4,016.96
0.00
867.24
3,623.44
0.00
810.06
1,532.46
1,570.44
810.10
0.00
0.00
0.00
4,747.67
0.00
4,884.20
0.00
4,433.50
0.00
3,913.00
'14
12
mths
Income
Interest Earned
Other Income
Total Income
Expenditure
Interest expended
Employee Cost
Selling, Admin & Misc Expenses
Depreciation
Preoperative Exp Capitalised
Operating Expenses
Provisions & Contingencies
Total Expenses
48