Suraj!!!
Suraj!!!
Suraj!!!
A PROJECT REPORT
SUBMITTED AT
SUBMITTED BY
SURAJ GHIMIRAY
Roll No. 23/BBA/070151
BBA VIth Semester
CONTENTS
S.No Topics
Page No.
Preface
Acknowledgement
PART I
• Chapter 1 Introduction 5
• Chapter 2 Organization’s Profile 22
• Chapter 3 Need and Importance of the Study
58
• Chapter 4 Objectives of the Company 60
PART II
• Chapter 5 Research Methodology and
Sampling 62
• Chapter 6 Data Analysis and Interpretation 67
• Chapter 7 Findings and Conclusions 74
• Suggestions77
• Bibliography78
PREFACE
This Project has been prepared as per the requirement of my Bachelor of
Business Administration. This will also give the proper knowledge of Various
Services Offered By Druk Punjab National Bank Limited in Bhutan as well as in
other countries.
I have worked my best to keep the presentation of this Project report simple and
understandable. My aim is to make clear all related points of the study.
While presenting the project report I am very optimistic about its relevance to
the organization.
ACKNOWLEDGEMENT
It gives me immense pleasure while thanking the Management of Druk Punjab
National Bank Limited for allowing me to do my Project training in this
organization.
I am very much grateful to Mr. N.K. Arora, CEO, who gave me this opportunity
to work under his guidance and provided valuable suggestions.
I would also like to thank Mr. Samdrup (Managing Director), who provided all
the information and untiring guidance throughout the Project.
I wish to take the opportunity to extend my sincere gratitude to all those who
have given me their precious time and humble guidance in the completion of my
Project report. During the preparation I have also received full co-operation of
the Sales Department.
Last but not the least I am very much thankful to all those who helped me
throughout my Project.
SURAJ GHIMIRAY
KALIMPONG GOVERNMENT COLLEGE
(CENTRE FOR MANAGEMENT STUDIES),
KALIMPONG,
DARJEELING(WB)
Chapter-1
Introduction
General Introduction
Bank may be defined as a financial institution which is engaged in the business of
keeping money for savings and checking accounts or for exchange or for issuing loans
and credit etc. A set of services intended for private customers and characterized by a
higher quality than the services offered to retail customers.
Based on the notion of tailor-made services, it aims to offer advice on investment,
inheritance plans and provide active support for general transactions and the
resolution of asset-related problems.
The essential function of a bank is to provide services related to the storing of
deposits and the extending of credit.Basic function may include Credit collection,
Issuer of banking notes, Depositor of money and lending loans.
Now a days banking is not in its traditional way , with the advancement of
technology its focusing on more comfort of customer providing services such as:
online banking
investment banking
electronic banking
internet banking
pc banking /mobile banking
e-banking
The importance of banking sector is immense in the progress and prosperity of any
State or country.
A Brief History
Banking in India originated in the last decades of the 18th century. The oldest bank
in existence in India is the State Bank of India, a government-owned bank that traces
its origins back to June 1806 and that is the largest commercial bank in the country.
Central banking is the responsibility of the Reserve Bank of India, which in 1935
formally took over these responsibilities from the then Imperial Bank of India,
relegating it to commercial banking functions. After India's independence in 1947, the
Reserve Bank was nationalized and given broader powers. In 1969 the government
nationalized the 14 largest commercial banks; the government nationalized the six
next largest in 1980.
Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks
(that is with the Government of India holding a stake), 31 private banks (these do not
have government stake; they may be publicly listed and traded on stock exchanges)
and 38 foreign banks. They have a combined network of over 53,000 branches and
17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public
sector banks hold over 75 percent of total assets of the banking industry, with the
private and foreign banks holding 18.2% and 6.5% respectively
Banking in India originated in the last decades of the 18th century. The first banks
were The General Bank of India, which started in 1786, and the Bank of Hindustan,
both of which are now defunct. The oldest bank in existence in India is the State Bank
of India, which originated in the Bank of Calcutta in June 1806, which almost
immediately became the Bank of Bengal. This was one of the three presidency banks,
the other two being the Bank of Bombay and the Bank of Madras, all three of which
were established under charters from the British East India Company. For many years
the Presidency banks acted as quasi-central banks, as did their successors. The three
banks merged in 1925 to form the Imperial Bank of India, which, upon India's
independence, became the State Bank of India.
Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848
as a consequence of the economic crisis of 1848-49. The Allahabad Bank, established
in 1865 and still functioning today, is the oldest Joint Stock bank in India. It was not
the first though. That honor belongs to the Bank of Upper India, which was
established in 1863, and which survived until 1913, when it failed, with some of its
assets and liabilities being transferred to the Alliance Bank of Simla.
When the American Civil War stopped the supply of cotton to Lancashire from the
Confederate States, promoters opened banks to finance trading in Indian cotton. With
large exposure to speculative ventures, most of the banks opened in India during that
period failed. The depositors lost money and lost interest in keeping deposits with
banks. Subsequently, banking in India remained the exclusive domain of Europeans
for next several decades until the beginning of the 20th century.
Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The
Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860, and another in
Bombay in 1862; branches in Madras and Pondichery, then a French colony,
followed. HSBC established itself in Bengal in 1869. Calcutta was the most active
trading port in India, mainly due to the trade of the British Empire, and so became a
banking center.
The first entirely Indian joint stock bank was the Oudh Commercial Bank, established
in 1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank,
established in Lahore in 1895, which has survived to the present and is now one of the
largest banks in India.
Around the turn of the 20th Century, the Indian economy was passing through a
relative period of stability. Around five decades had elapsed since the Indian Mutiny,
and the social, industrial and other infrastructure had improved. Indians had
established small banks, most of which served particular ethnic and religious
communities.
The presidency banks dominated banking in India but there were also some exchange
banks and a number of Indian joint stock banks. All these banks operated in different
segments of the economy. The exchange banks, mostly owned by Europeans,
concentrated on financing foreign trade. Indian joint stock banks were generally under
capitalized and lacked the experience and maturity to compete with the presidency
and exchange banks. This segmentation let Lord Curzon to observe, "In respect of
banking it seems we are behind the times. We are like some old fashioned sailing
ship, divided by solid wooden bulkheads into separate and cumbersome
compartments."
The period between 1906 and 1911, saw the establishment of banks inspired by the
Swadeshi movement. The Swadeshi movement inspired local businessmen and
political figures to found banks of and for the Indian community. A number of banks
established then have survived to the present such as Bank of India, Corporation
Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India.
The fervor of Swadeshi movement lead to establishing of many private banks in
Dakshina Kannada and Udupi district which were unified earlier and known by the
name South Canara ( South Kanara ) district. Four nationalised banks started in this
district and also a leading private sector bank. Hence undivided Dakshina Kannada
district is known as "Cradle of Indian Banking".
The period during the First World War (1914-1918) through the end of the Second
World War (1939-1945), and two years thereafter until the independence of India
were challenging for Indian banking. The years of the First World War were
turbulent, and it took its toll with banks simply collapsing despite the Indian economy
gaining indirect boost due to war-related economic activities. At least 94 banks in
India failed between 1913 and 1918 as indicated in the following table:
1913 12 274 35
1915 11 56 5
1916 13 231 4
1917 9 76 25
1918 7 209 1
Post-independence
The partition of India in 1947 adversely impacted the economies of Punjab and West
Bengal, paralyzing banking activities for months. India's independence marked the
end of a regime of the Laissez-faire for the Indian banking. The Government of India
initiated measures to play an active role in the economic life of the nation, and the
Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed
economy. This resulted into greater involvement of the state in different segments of
the economy including banking and finance. The major steps to regulate banking
included:
• In 1948, the Reserve Bank of India, India's central banking authority, was
nationalized, and it became an institution owned by the Government of India.
• In 1949, the Banking Regulation Act was enacted which empowered the
Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in
India."
• The Banking Regulation Act also provided that no new bank or branch of an
existing bank could be opened without a license from the RBI, and no two
banks could have common directors.
However, despite these provisions, control and regulations, banks in India except the
State Bank of India, continued to be owned and operated by private persons. This
changed with the nationalisation of major banks in India on 19 July, 1969.
Nationalization of Banks
By the 1960s, the Indian banking industry has become an important tool to facilitate
the development of the Indian economy. At the same time, it has emerged as a large
employer, and a debate has ensued about the possibility to nationalise the banking
industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of
the GOI in the annual conference of the All India Congress Meeting in a paper
entitled "Stray thoughts on Bank Nationalisation." The paper was received with
positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued
an ordinance and nationalised the 14 largest commercial banks with effect from the
midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described
the step as a "masterstroke of political sagacity." Within two weeks of the issue of the
ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer
of Undertaking) Bill, and it received the presidential approval on 9 August, 1969.
In the early 1990s, the then Narsimha Rao government embarked on a policy of
liberalization, licensing a small number of private banks. These came to be known as
New Generation tech-savvy banks, and included Global Trust Bank (the first of such
new generation banks to be set up), which later amalgamated with Oriental Bank of
Commerce, Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This
move, along with the rapid growth in the economy of India, revitalized the banking
sector in India, which has seen rapid growth with strong contribution from all the
three sectors of banks, namely, government banks, private banks and foreign banks.
The next stage for the Indian banking has been setup with the proposed relaxation in
the norms for Foreign Direct Investment, where all Foreign Investors in banks may be
given voting rights which could exceed the present cap of 10%,at present it has gone
up to 49% with some restrictions.
The new policy shook the Banking sector in India completely. Bankers, till this time,
were used to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4) of
functioning. The new wave ushered in a modern outlook and tech-savvy methods of
working for traditional banks.All this led to the retail boom in India. People not just
demanded more from their banks but also received more.
With the growth in the Indian economy expected to be strong for quite some time-
especially in its services sector-the demand for banking services, especially retail
banking, mortgages and investment services are expected to be strong. One may also
expect M&As, takeovers, and asset sales.
In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its
stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an
investor has been allowed to hold more than 5% in a private sector bank since the RBI
announced norms in 2005 that any stake exceeding 5% in the private sector banks
would need to be vetted by them.
In recent years critics have charged that the non-government owned banks are too
aggressive in their loan recovery efforts in connection with housing, vehicle and
personal loans. There are press reports that the banks' loan recovery efforts have
driven defaulting borrowers to suicide.
American Banks
• Commonwealth Bank
• National Bank Australia
• Westpac Banking Corporation
Austrian Banks
Belgian Banks
• Fortis Bank.
• K.B.C. Bank N.V.
Canadian Banks
UAE Banks
French Banks
German Banks
• DEPFA Bank
Italian Banks
Nepalese Banks
• Everest Bank
Portuguese Banks
Russian Banks
• Vnesheconombank
• VTB India
• Promsvyazbank
• Wori Bank
Spanish Banks
• Banco de Sabadell
• Banco Bilbao Vizcaya Argentaria
SriLankan Banks
Swiss Banks
• UBS
• Zurcher Kantonalbank
• Saqib Saeed Qureshi
Financial sector reforms were initiated as part of overall economic reforms in the
country and wide ranging reforms covering industry, trade, taxation, external
sector, banking and financial markets have been carried out since mid 1991. A
decade of economic and financial sector reforms has strengthened the
fundamentals of the Indian economy and transformed the operating environment
for banks and financial institutions in the country. The sustained and gradual pace
of reforms has helped avoid any crisis and has actually fuelled growth. As pointed
out in the RBI Annual Report 2001-02, GDP growth in the 10 years after reforms
i.e. 1992-93 to 2001-02 averaged 6.0% against 5.8% recorded during 1980-81 to
1989-90 in the pre-reform period. The most significant achievement of the
financial sector reforms has been the marked improvement in the financial health
of commercial banks in terms of capital adequacy, profitability and asset quality
as also greater attention to risk management. Further, deregulation has opened up
new opportunities for banks to increase revenues by diversifying into investment
banking, insurance, credit cards, depository services, mortgage financing,
securitisation, etc. At the same time, liberalisation has brought greater competition
among banks,both domestic and foreign, as well as competition from mutual
funds, NBFCs, post office, etc. Post-WTO, competition will only get intensified,
as large global players emerge on the scene. Increasing competition is squeezing
profitability and forcing banks to work efficiently on shrinking spreads. A positive
fallout of competition is the greater choice available to consumers,and the
increased level of sophistication and technology in banks. As banks benchmark
themselves against global standards, there has been a marked increase in
disclosures and transparency in bank balance sheets as also greater focus on
corporate governance.
Some of the major reform initiatives in the last decade that have changed the face
of the Indian banking and financial sector are:
• Interest rate deregulation. Interest rates on deposits and lending have been
deregulated with banks enjoying greater freedom to determine their rates.
• New private sector banks have been set up and foreign banks permitted to
expand their operations in India including through subsidiaries. Banks have also
been allowed to set up Offshore Banking Units in Special Economic Zones.
• New areas have been opened up for bank financing: insurance, credit cards,
infrastructure financing, leasing, gold
banking, besides of course investment banking, asset management, factoring, etc.
• New instruments have been introduced for greater flexibility and better risk
management: e.g. interest rate swaps, forward rate agreements, cross currency
forward contracts, forward cover to hedge inflows under foreign direct
investment, liquidity adjustment facility for meeting day-to-day liquidity
mismatch.
• Several new institutions have been set up including the National Securities
Depositories Ltd., Central Depositories Services Ltd., Clearing Corporation of
India Ltd., Credit Information Bureau India Ltd. • Limits for investment in
overseas markets by banks, mutualfunds and corporates have been liberalised. The
overseas investment limit for corporates has been raised to 100% of net worth and
the ceiling of $100 million on prepayment of external commercial borrowings has
been removed. MFs and corporates can now undertake FRAs with banks. Indians
allowed to maintain resident foreign currency (domestic) accounts. Full
convertibility for deposit schemes of NRIs introduced.
• Technology infrastructure for the payments and settlement system in the country
has been strengthened with electronic funds transfer, Centralised Funds
Management System,Structured Financial Messaging Solution, Negotiated
Dealing System and move towards Real Time Gross Settlement.
• Adoption of global standards. Prudential norms for capital adequacy, asset
classification, income recognition and provisioning are now close to global
standards. RBI has introduced Risk Based Supervision of banks (against the
traditional transaction based approach). Best international practices in accounting
systems, corporate governance,payment and settlement systems, etc. are being
adopted.
• Credit delivery mechanism has been reinforced to increase the flow of credit to
priority sectors through focus on micro credit and Self Help Groups. The
definition of priority sector has been widened to include food processing and cold
storage, software upto Rs 1 crore, housing above Rs 10 lakh,selected lending
through NBFCs, etc.
• RBI guidelines have been issued for putting in place risk management systems in
banks. Risk Management
Committees in banks address credit risk, market risk and operational risk. Banks
have specialised committees to measure and monitor various risks and have been
upgrading their risk management skills and systems.
• The limit for foreign direct investment in private banks has been increased from
49% to 74% and the 10% cap on
voting rights has been removed. In addition, the limit for foreign institutional
investment in private banks is 49%.
• Wide ranging reforms have been carried out in the area of capital markets. Fresh
investment in CPs, CDs are allowed only in dematerialised form. SEBI has
reduced the settlement cycle from T+3 to T+2 from April 1, 2003 i.e. settlement
of stock deals will be completed in two trading days after the trade is executed,
taking the Indian stock trading system ahead of some of the developed equity
markets. Stock exchanges will set up trade guarantee funds. Retail trading in
Government securities has been introduced on NSE and BSE from January 16,
2003. A Serious Frauds Office is proposed to be set up. Fungibility of ADRs and
GDRs allowed.
There is no doubt that banking sector reforms have increased the profitability,
productivity and efficiency of banks. There has been an improvement in overall
capital adequacy of banks and as on March 31, 2002 92 out of 97 commercial
banks operating in India had capital adequacy above the statutory minimum level
of 9%. Introduction of prudential norms relating to asset classification, income
recognition and provisioning, along with legal and institutional reforms, has led to
visible improvement in asset quality in banks. Net NPAs (i.e.that portion of NPAs
which is not provided for) have declined gradually from 10.7% in 1994-95 to
5.8% in 2001-02.Increase in the number of players has increased competition,
which is reflected in the decline in the bank concentration ratio. The share of top 5
banks in total assets declined from 51.7% in 1991-92 to 43.5% in 2001-02 while
its share in
profits fell from 54.5% to 41.4% in the same period.
Challenges Ahead
Organization’s
Profile
Organization’s Profile
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 nationalised 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.
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 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 March’09. As on
March’09, 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%.
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 it’s 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 it’s policy of
inclusive growth in the Indo-Gangetic belt, the Bank’s 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 inclusion in 21,408 villages.
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 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 companies compiled by the US magazine
‘Forbes’.
Parameters Mar'07 Mar'08 Mar'09 CRAR
Operating Profit* 3617 4006 5744 26.02
Net Profit* 1540 2049 3091 41.67
Deposit 139860 166457 209760 22.47
Advance 96597 119502 154703 26.55
Total Business 236456 285959 364463 24.15
(Rs. In Crores)
Finance
Personal Administration
Human Source
Retailing
Treasury Management
Information Technology
Product Profile of the Organization
Saving Account
• PNB Prudent Sweep
• Total Freedom Salary Account
• PNB Vidyarthi Salary Account
• PNB Mitra SF Account
Current Accounts
• Smart Romer
• PNB Vaibhav
• PNB Gaurav
Fixed Deposit Accounts
• Spectrum fixed deposit scheme
• Anupam account
• Multi benefit deposit scheme
• Special fixed deposit scheme
• Recurring deposit scheme
• PNB swecha jama yojna/flexi rd
Credit schemes
• Housing loan
• Car finanace
• Personal loan
• Professional loan
• Educational loan scheme
• Loan against mortgage of property
• PNB financial basket scheme
• Personal loan scheme for pensioners
• Privilege card scheme
• Other credit scheme
Social Banking
• Farmers
• Krishi card
• Agriculture credit scheme
• PNB farmers welfare trust
Women
• Scheme for house wife and other women
• Mahila udhyam nidhi scheme
Savings Accounts
Free funds transfer from their accounts within our CBS branches and at 50% discount
at non-CBS branches;
Free issuance of all types of certificates including interest certificate and balance
certificate, etc;
Free of Cost maintenance of Demat Account (we shall be waiving the charges to be
earned by PNB as annual fee, charges payable to NSDL would be recovered from
the customers);
PNB-HSBC Credit Cards shall also be got considered by HSBC on priority 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 Personal Loans to the general public.
Age of Student The overdraft facility would be available for the students, having
completed the age of 18 years
Purpose Contingent day to day needs of those students who are staying away
from their parents for the study purposes having got an admission with
recognised and reputed educational institutions.
Repayment For repayment purposes, a single post dated cheque must be obtained
from earning parents/natural guardian/local guardian of student and
kept on record.
Recovery Aspects The overdraft facility must be brought into credit once in 3 months,
failing which recovery process be started. The facility would be
recalled and the student would not be eligible for this overdraft facility
at any branch of our Bank. In any case, this facility should not be
allowed to continue when the student is in the final year of study at that
educational institution, i.e. account has to be got into credit at least six
month before the expiry of the tenure of the study period without any
further continuation of overdraft facility.
Attractive Freebies/Concessions
The following freebies are also admissible:
Demand drafts for all types Free of cost
of fees/examination fees
Initial Deposit Amount The account will be opened without any initial deposit, i.e.,
it
Will be Zero Balance Saving Fund Account
Incidental Charges NIL
Ledger Folio Charges NIL
Retail Internet Banking Free (at CBS branches only)
Services
Intersol transactions Free
including cash
withdrawal/deposits
ATM Card/DEBIT CARD Free (subject to availability of ATMs in the area)
Cheque Book Facility Free (2 cheque books in a year)
A Multi-Option Fixed Deposit Scheme that fit your needs, timing & resources, to
match your convenience
Our Bank has several Domestic Deposit Schemes designed to cater to the needs
of various segments of customers to meet your specific requirement.
1. Participation
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
For Public
Only depositors can avail overdraft facility against their deposits under this
scheme.
No third party advance ie Credit Facility / overdraft to persons other than
depositors is allowed under Anupam Account. Even the overdraft facility to a
proprietorship firm against Fixed Deposit in the name of its proprietor is not
allowed.
If any depositor desires to withdraw the deposit before maturity, Bank may at
its discretion repay the deposit with upto date quarterly compounded interest at
the rate applicable to the period for which deposit remained with the bank
Further, Fixed Deposit can be accepted in the same Anupam Account on your
request and the limit in the overdraft account be increased accordingly against
the additional deposit and it will also be endorsed in the Receipt Form with you.
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.
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.
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 new Car/ Van/ Jeep: The loan amount together with interest is to be
repaid maximum in 84 Equated Monthly Instalments (EMIs)
For old Car/ Van/ Jeep: The loan amount together with interest is to be
repaid maximum in 60 Equated Monthly Instalments (EMIs)
The intending borrower will be required to settle the transaction for purchase
of vehicle needed by him/her with the seller and will be required to deposit
the difference of the cost of the vehicle to amount of loan, and thereafter, the
advance will be allowed to him/her from the bank by paying the entire price
of the vehicle to the seller directly on behalf of the borrower
Term Loan:
60 Equated Monthly Instalments (EMIs) OR remaining period of service,
whichever is earlier. Instalment to commence one month after disbursement
of loan.
Overdraft:
The overdraft limit shall be adjusted within a maximum period of 60 months
by reducing Drawing Power(DP) equivalent to EMI amount at the beginning
of every month.
However, loan allowed to Army Jawans, other permanent employees of
Military Station Headquarters and Para Military Personnel shall be Repayable
in maximum 36 Equated Monthly Instalments or remaining period of stay at
the particular posting, whichever is lower
Term Loan
Loans up to Rs.50000/- 48 months
Loans beyond Rs.50000/- 60 months
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.
Eligibility
For Individuals
. OBJECTIVE
Offers attractive benefits as part of a Package to those customers who have the
capacity and are willing to avail a minimum specified loan amount under at least two
or more specified Retail Loan Schemes.
2. SCHEME APPLICABILITY
Authorised Branches.
3. ELIGIBILITY
Individuals, including joint owners, who are willing to avail a minimum loan of
Rs.5.00 lac as a package under at least two specified Retail Loan Schemes at a time.
One of which necessarily be for HOUSING and the other may be any one of the
following purposes:
Car,
Personal or
Education. At the same time, such individuals/ including joint owners should have
adequate capacity to regularly service such loans.
4. PURPOSE
Loan on pari passu or second charge basis only to confirmed employees of Central/
State Government / Public Sector Undertakings (PSUs) maximum upto Rs. 20 lacs.
The quantum of loan be decided taking into account the amount of earlier loan availed
and repaying capacity of the borrower.
5. AMOUNT OF LOAN
For Personal Needs: Need Based - Minimum Rs.1 lac Maximum Rs. 2 lacs
For Education: For Studies in India - Minimum Rs.1 lac Max. Rs.5.00 lac
For Studies abroad - Minimum Rs.1 lac Max. Rs.10.00 lac
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 Rate of Interest @percent
For loans repayable p.a.
REVISED w.e.f. 01.08.2003
in/upto
i) Upto 5 years 7.75
ii) Above 5 & upto 10 8.25
years
Personal - 13%
8. REPAYMENT
For Car and Personal - Maximum 4 years (48 months) in equal Monthly Instalments.
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
11. SECURITY:
Housing
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
12. GUARANTEE
Suitable guarantee acceptable to the Bank may be obtained which may also include
guarantee from family members/other relatives.
In case any of the loan facilities allowed are adjusted within a period of three years,
borrower(s) will be required to pay a prepayment Penalty @ 2% on the amount which
had not become due for payment.
15. GENERAL
The concessional loan facility is available provided the combined availment is Rs. 5
lacs or more.
Equitable Mortgage of the Immovable Property against which Housing loan has been
allowed will secure the combined loan for two or more purposes.
Equitable Mortgage shall not to be released till final adjustment of all the loans.
Indian Retail Banking continues to redefine the credit growth in the country. It grew
by a whopping 44.4% in 2005-06 to touch Rs3,538 billion. This leap was despite the
increase in risk weight by RBI for housing and real estate loans during August, 2005.
Housing, which constitutes more than 52% of all retail loans, grew at a robust rate of
44.35% during 2005-06. In order to help banks in India to understand the market and
competition and plan future strategies, we have just come out with an Industry Insight
on Indian Retail banking – 2006 edition. This report analyses the retail banking
market and its segments in India and presents the key trends, along with issues and
challenges. The report also paints a future outlook for the market. Besides it profiles
21 major players in the retail banking space and their strategies.
This report will be of immense use to all banks in India to review and formulate their
strategies in the retail space. It primarily covers analysis of the present status, current
trends, major issues & challenges in the growth of the retail banking sector.
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%.
Need and
Importance of the
Study
IMPORTANCE
To know the awareness & acceptance of change
is very important because if customers are not
satisfied and accepting the changes then the
whole investment is useless and without
knowing it further investment is fruitless.
Chapter 4
Objectives of Druk
Punjab National
Bank Limited
OBJECTIVES OF SURVEY
RESEARCH DESIGN
A research project conducted scientifically has a specific frame work of research from
problem identification to presentation of research report. This framework of
conducting research is known as Research Design.
A research can be conducted without a research plan but it may not solve the problem.
A research cannot achieve its objectives without proper research design, without
design, it increase its cost and energy.
Descriptive research includes surveys and facts finding enquiry’s of different finds.
The major purpose of descriptive research is description of the state of affairs as it
exists at present. The main characteristics of this method are that the researcher has no
control over the variable. He can only report what has happened or what is happening.
Most are post facts research projects are used for descriptive studies in which the
researcher seeks to measure such items as for example frequency of shopping,
preference of people or similar data. Ex post facts studies also include attempt by
researchers to discover causes even way when they cannot control the variables. The
method of research utilized in descriptive research is survey method of all kinds,
including comparative and correctional methods.
The study is about customer satisfaction regarding services in PNB. It is being made
because Customer satisfaction is the key to the profitability of the banking. It implies
the retention of customers for the long term, which is cheaper than altercating new
customers. In current scenario bank becoming larger the closure of branches and the
advent of internet banking, the question arises whether the customers are satisfied or
not.
DATA COLLECTION
PRIMARY DATA with the help of self structured, questionnaire was collected to the
address the research objectives and keeping in tune with the research design.
SECONDARY DATA consisted from “Journals, Magazines, and Books & Websites.”
SAMPLING TECHNIQUE
SAMPLE SIZE
40 Customers.
DESCRIPTION OF EXPERIENCES
Uneducated customers were not abling to fill their Forms properly
Due to the lack of the employees’ ledger were not in good condition.
Recording of the data was incomplete and due to which they were not able to
clarify
the dues.
But due to the computer the job of the employees is simpler.
Now they have to pass simple entries and all records is maintained easily
without any
confusion.
There job is much simpler than before now they can make changes, add,
modify at
the same time in a easy manner that is an achievement for bank
I learnt many things in the bank but the most interesting thing I like there is
the
Environment of the bank the employees help each other rather they the job of
other
or not but they help each other.
Conflicts arise between them because of the lack of the customers they add
wrong
information in their cheques or vouchers that cannot be passed.
I learnt many things I have good and bad experiences both over their before I
I was
not aware of anything in the bank now I know many things.
I can say that while working over their no employee leaves its work pending
for net
day because if they let it pending than they can not end their day and by hook
or
crook they have to finish it.
My experience says that working in bank is not as easy as we think because
Managing each and every thing is not easy task.
They have to interact with differ rent types of people so it’s very tough.
Chapter-6
DATA
ANALYSIS
AND
INTERPRETATIO
N
DATA ANALYSIS and INTERPRETATION
TABLE
HOW IS BEHAVIOUR OF STAFF?
GOOD
SATISFACTORY
VERY GOOD
UNSATISFACTORY
TABLE
DO YOU FIND OUT STAFF CO-OPERATVE/COURTEOUS?
SERVICE 5 8 13 32.5
STUDENT 3 5 8 20.0
RETIRED 2 2 4 10.0
BUSINESS 8 3 11 27.5
HOUSE HOLD 2 2 4 10.0
TOTAL 20 20 40 100
yes
no
TABLE
WHETHER FACILITY OF LOCKER IS UPTO THE MARK?
OCCUPATION YES NO TOTAL %AGE
SERVICE 10 3 13 32.5
STUDENT 6 2 8 20.0
RETIRED 3 1 4 10.0
BUSINESS 9 2 11 27.5
HOUSE HOLD 3 1 4 10.0
TOTAL 31 9 40 100
yes
no
TABLE
IS MANAGER & STAFF RECEPTIVE TO YOUR PROBLEMS?
OCCUPATION YES NO TOTAL %AGE
SERVICE 9 4 13 32.5
STUDENT 3 5 8 20.0
RETIRED 3 1 4 10.0
BUSINESS 6 5 11 27.5
HOUSE HOLD 3 1 4 10.0
TOTAL 24 16 40 100
yes
no
TABLE
HOW MUCH TIME IS TAKEN IN OPENING OF AN ACCOUNT?
OCCUPATION 15 30 1 2 HOURS/ TOTAL %AGE
MINUTES MINUTES HOUR MORE
SERVICE 6 5 2 0 13 32.5
STUDENT 2 4 2 0 8 20.0
RETIRED 2 2 0 0 4 10.0
BUSINESS 5 3 2 1 11 27.5
HOUSE HOLD 3 1 0 0 4 10.0
TOTAL 18 15 6 1 40 100
15 minutes
30 minutes
1 hour
2 hours/more
TABLE
DO YOU WANY TO AVAIL OUR CREDIT FACILITIES?
OCCUPATIO PERSONAL CONSUMER OTHERS HOUSING CAR TOTA %AGE
N LOAN LOAN LOAN LOAN L
SERVICE 1 1 6 2 3 13 32.5
STUDENT 1 4 1 1 1 8 20.0
RETIRED 4 0 0 0 0 4 10.0
BUSINESS 2 5 0 2 2 11 27.5
HOUSEHOLD 2 0 0 2 0 4 10.0
TOTAL 10 10 7 7 6 40 100
personal loan
consumer loan
others
housing loan
car loan
Chapter-7
FINDINGS AND
CONCLUSIONS
FINDINGS AND CONCLUSIONS
FINDINGS
DPNBL was registered on 31st December 2008 under the Companies Act of
Kingdom of Bhutan 2000 and was issued certificate of license to act as
Commercial Bank by the Royal Monetary Authority of Bhutan on 20th January
2010
DPNBL is the oldest bank from 1895, so it has a strong band image in the
market built over the time & a huge stockpile of the customers under its arms.
DPNBL as not much computer savy and works more manually, which restricts
its scope of business.
The process of certain activities of the bank is very much lengthy, as a result
of which now a day’s people prefer to go towards private banks.
The working environment of the bank is not so much healthy and clean as
result of which customers even hesitate to enter the bank.
Conclusions
Bank requires good sitting arrangements for the old generation so that they can
get their work done easily and in a manner and get fully satisfied.
Promotions to the employees should be given and their salary must be
increased.
Maximum tax benefit is availed from home loan and minimum from car loan.
Maximum number of borrowers were get influenced by dealer/agent and
minimum by relative. So bank requires introducing new advertisement for
loan schemes.
Bank requires to make better arrangements in sitting and standing in the
branch.
Bank has to maintain its working environment as result of which customers
not even hesitate to enter the bank.
SUGGESTIONS
Despite the fact that Druk Punjab National Bank Limited has the second largest
customers, I would like to suggest some measures to be taken into consideration
for further strengthening the position.
Website of PNB.