Summer Training Report

On
“The Study of Customer Relationship Management at Punjab National Bank”

Submitted in the partial fulfilment of the requirement for the award of degree of

Bachelor Of Business Administration

(BBA)

Session 2020-2023

Under the supervision of: Submitted by:

Mr. Sunil Bratt Riya Arora

(Senior Officer) BBA 3RD Year

(201002927)

Panipat Institute of Engineering & Technology, Samalkha

Affiliated to Kurukshetra University, Kurukshetra

1
 DECLARATION

This is to certify that I RIYA ARORA student of Panipat Institute of Engineering &
Technology studying in BBA 5th Semester, Roll No.201002927 has prepared a
project report entitled “A Study On Customer Relationship Management at
Punjab National Bank” for the partial fulfillment of degree of Bachelor of
Business Administration from Kurukshetra University, Kurukshetra.

I hereby declare that the project report submitted to the Kurukshetra University,
Kurukshetra is a record of an original work done by me under the guidance of Ms.
Preeti Dahiya (Assistant professor).

The matter presented in this project work has not been submitted by me for the
award of any Degree or diploma/ associate ship / fellowship and similar degree or
any other institute.

Riya Arora

20100292

2
 ACKNOWLEDGEMENT

Gratitude of highest order is expressed to Dr. Rohit Garg (Head of Department) for encouragement
and support during my project. His care, endless support and trust motivate me for opportunity to
achieve. This project could not be completed without his insight and achieve.
I am neither expert nor a trend spotter. I am a management student with foundations of management
principles and theories who is keen in different industries, it's happening mainly in Punjab National
Bank.
I am highly obliged to Mr. Sunil Bratt, my prime internal guide for his invaluable support; guidance
and knowledge that he has shared with me thereby aiding me in making this project a success along
with other employees who provided their utmost working knowledge, which has broaden my area of
interest and benefited mostly in completing the project.
I am highly grateful to my project guide Ms. Preeti Dahiya (Assistant Professor) for her inspiring
guidance and blessings for fulfilling the project report. I am very grateful to Ms. Preeti Dahiya for
her research advice, knowledge and many insightful discussion and suggestions.
Lastly I thank faculty and staff members of P.I.E.T, Panipat which gave me an opportunity regarding
training purpose and helped me in building some experience in my career.

Riya Arora
201002927

3
 INDEX
Page No.
S.No. Index of Contents

1. Chapter- 1 Introduction

1.1 The Industry

8-31
1.2 The Company

1.3 Topic

2. Chapter -2 Literature Review 32-38

3. Chapter -3 Research Methodology

3.0) Research methodology

3.1) Statement of the problem

3.2) justification of the study

3.3) Objective of the study

3.4) Scope of the study 39-47

3.5) Research design

3.6) Collection of data

3.7) Sources of data collection

3.8) Sampling technique

3.9) Analytical tools used to study

3.10) Limitations of study

4. Chapter- 4 Analysis and Interpretation

5. Chapter- 5 Findings, Conclusion & Recommendation

5.1) Findings

5.2) Suggestion

5.3) Conclusion
Bibliography
Annexure

4
 LIST OF TABLES

Table No. Particulars Page

No.

1.2.1 Management of Punjab National Bank 20

1.3.1 Replacing hard cash 32

4.1 Age group 43

4.2 Working Sector 44

4.3 Variety Of Products 45

4.4 Features to be Expected 46

4.5 Centralized Database for Customer Information 47

4.6 Customer's Needs 48

4.7 Kind of Assistance 49

4.8 Updation to Customer 50

4.9 Ideal policy terms 51

4.10 Factors motivating respondents 52

4.11 Satisfaction regarding Salary 53

4.12 Satisfaction of services provided 54

4.13 Channel to access Account 55

4.14 Other Products 56

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 LIST OF FIGURES
Figure No. Particulars Page No.
4.1 Age group 43

4.2 Working Sector 44

4.3 Variety Of Products 45

4.4 Featured to be Expected 46

4.5 Centralized Database for Customer Information 47

4.6 Customers Need 48

4.7 Kind of Assistance 49

4.8 Updation to Customer 50

4.9 Ideal policy terms 51

4.10 Factors motivating respondents 52

4.11 Satisfaction regarding salary 53

4.12 Satisfaction of services Provided 54

4.13 Channel to access account 55

4.14 Other Products 56

6
 CHAPTER 1

INTRODUCTION

7
1.1 Introduction to the industry:

Bank plays an important role in the economic development of a country. It is a

financial institution that accepts deposits and channels those deposits into leading
activities either directly or through capital market. A bank connects customers
which have capital deficits to those customers with capital surpluses. The banking
industry in India is facing certain challenges i.e., challenges of quality services,
customer satisfaction, retention, customer loyalty, quality services play a major role
in achieving customer satisfaction and creating brand loyalty in banking sector.

Role of banking in Indian economy

The government of India, after independence had to focus on many areas among
which one of the important tasks was economic development of the country. In this
context, the industrial policy resolution in 1948 focused on mixed economy, which
played an active role in development of different sectors including banking and
finance. A major step in this

direction was the nationalization of banks in 1948. The banking Regulation act was
enacted which empowered the reserve bank of India (RBI) to regulate, control and
inspect the banks in India.

The government of India nationalized private banks in 1969 and later in 1980 in
order to have better control over this sector. Government of India controls around
91% of the banking business in India. In early 1990s , the then prime minister of
India P.V NARISHMA RAO liberalized the sector by giving licenses to a small
numbers of private banks, which came to be known as new generation tech-savvy
banks. Among these banks were, GLOBAL TRUST BANK (now renamed as
Punjab National Bank), ICICI bank and HDFC bank. The banking sector in India
constitutes government banks, private banks and foreign banks.

In the era of liberalization, privatization and globalization (LPG) banks plays a

dynamic role in contributing to the economic development of the customers and the
changing climate which lead to an unprecedented set of challenges. Banking is a

8
customer oriented services industry which has witnessed a radical shift in the
market power.

The effectiveness and efficiency services become the buzzword of the success of
banking operations and its proper functioning particularly with respect to providing
services to the customers. Services are an invisible thing which is indispensible from
the persons who extended it. An efficient or effective service is one which is
extended appropriately by identifying and understanding the needs of the individual
customer from time to time customer service is a dynamic interactive process which
needs continuous improvement. With the advancement of information technology
and communication system, the whole world has been reduced to a global village.

History

The first bank in India, though conservative, was established in 1786. From 1786 till
today, the journey of Indian Banking System can be segregated into three distinct
phases. They are as mentioned below:

 PHASE I - Early phase from 1786 to 1969 of Indian Banks

 PHASE II - Nationalization of Indian Banks and up to 1991
 PHASE III - Indian Financial & Banking Sector Reforms after 1991.

Phase I
The General Bank of India was set up in the year 1786. Next came Bank of
Hindustan and Bengal Bank.

The East India Company established

1. Bank of Bengal (1809),

2. Bank of Bombay (1840) and

3. Bank of Madras (1843) as independent units and called it Presidency Banks.

These three banks were amalgamated in 1920 and Imperial Bank of India was
established which started as private shareholders banks, mostly Europeans

9
shareholders. During the first phase the growth was very slow and banks also
experienced periodic failures between 1913 and 1948.

There were approximately 1100 banks, mostly small. To streamline the functioning
and activities of commercial banks, the Government of India came up with The
Banking Companies Act, 1949 3which was later changed to Banking Regulation
Act 1949 as per Amending Act of 1965 (Act No.23 of 1965). Reserve Bank of India
was vested with extensive powers for the supervision of banking in India as the
Central Banking Authority. During those day‘s public has lesser confidence in the
banks. As an aftermath deposit mobilization was slow. Abreast of it the savings
bank facility provided by the Postal department was comparatively safer. Moreover,
funds were largely given to the traders.

Phase II

Government took major steps in this Indian Banking Sector Reform after
independence. In 1955, it nationalized Imperial Bank of India with extensive
banking facilities on a large scale especially in rural and semi-urban areas.
Second phase of nationalization Indian Banking

Sector Reform was carried out in 1980 with seven more banks. This step brought
80% of the banking segment in India under Government ownership.

The following are the steps taken by the Government of India to Regulate Banking
Institutions in the Country:

 1949: Enactment of Banking Regulation Act.

 1955: Nationalization of State Bank of India.
 1959: Nationalization of SBI subsidiaries.
 1961: Insurance cover extended to deposits.
 1969: Nationalization of 14 major banks.
 1971: Creation of credit guarantee corporation.
 1975: Creation of regional rural banks.
 1980: Nationalization of seven banks with deposits over 200 cores.

10
After the nationalization of banks, the branches of the public sector bank India
raised to approximately 800% in deposits and advances took a huge jump by
11,000%.Banking in the sunshine of Government ownership gave the public
implicit faith and immense confidence about the sustainability of these institutions.

Phase III

This phase has introduced many more products and facilities in the banking sector in
its reforms measure. In 1991, under the chairmanship of M Narsimha, a committee
was set up by his name which worked for the liberalization of banking practices.
The country is flooded with foreign banks and their ATM stations. Efforts are being
put to give a satisfactory service to customers. Phone banking and net banking is
introduced. The entire system became more convenient and swift. The financial
system of India has shown a great deal of resilience. It is sheltered from any crisis
triggered by any external macroeconomics shock as other East Asian Countries
suffered. This is all due to a flexible exchange rate regime, the Foreign Reserves are
high, the capital account is not yet fully convertible, and banks and their customers
have limited foreign exchange exposure.

Nationalized banks in India:

Banking System in India is dominated by nationalized banks. The nationalization of banks

In India took place in 1969 by Mrs. India Gandhi the then prime minister. The major
objective behind nationalization was to spread banking infrastructure in rural areas and
make available cheap finance to Indian farmers. Fourteen banks were nationalized in
1969.Before 1969; State of India (SBI) was only public sector bank in India. SBI was
nationalized in 1955 under the SBI Act of 1955. The second phase of nationalization of
Indian banks took place in the year 1980. Seven more banks were nationalized with
deposits over 200 crores.

11
 Indian Banking System

reserve bank
of india

scheduled unscheduled
banks banks

1.2 Introduction To The Company:

About Punjab National Bank

Punjab National Bank of India, the first bank Indian bank started only with Indian
Capital was Nationalized in July1969 and currently the bank has become a front-
line banking Institution in India with 4525 Offices including 432 Extension
Counters. The Corporate Office of the bank is at New Delhi. Punjab National
Bank of India has set up representative offices at Almaty (Kazakhistan), Shanghai
(China) and in London and a full-fledged branch in Kabul (Afghanistan).

Punjab National Bank with 4497 offices and the largest nationalized bank is
serving its 3.5 crores customers with the following wide variety of banking
services:

 Corporate Banking
 Personal Banking
 International Banking
 Industrial Finance
 Agriculture Finance
 Financing of Trade

12
Punjab National Bank has been ranked 38th amongst top 500 companies by the
Economics Times. PNB has earned 9th position amongst top 50 Trusted Banks
in India.

Punjab National Bank of India maintains relationship with more than 200 leading
International Banks Worldwide. PNB India has Rupee Drawing Arrangements
with 15 Exchange Companies in UAE and 1 in Singapore.

HISTORY OF THE BANK:

Punjab National Bank PNB was registered on May 19, 1894 under the Indian
Companies Act with its Office in Anarkali Bazaar in 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 the biggest bank in the world by the Bankers Almanac, London. The bank's
total assets for the 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, Dubai, Oslo and Shanghai.

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 commercial bank was
established in 1881in Faizabad, but failed in 1958). PNB's Founder included several
leaders of the Swadeshi movement such as Dyal Singh Majithia and Lala Harikishan
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.

1894: PNB was founded on May 19 ,1894 in Lahore.

1895: PNB opened for business on 12 April,1895 at Ganpatrai Road in

Lahore. 1904: PNB established branches in Karachi and Peshawar.

1939: PNB acquired Bhagwan Dass Bank Limited.

13
1947: Paritition of India and Pakistan at Independence.PNB lost its premises in
Lahore, but continued to operate in Pakistan.

1960: PNB amalgamated Indo-Commercial Bank Limited (established in 1933) in

a rescue. 1961: PNB acquired Universal Bank of India.

1963: The Govt. of Burma nationalized PNB's Branch in Rangoon (Yangon)

1965: After the Indo-Pak war the Government of Pakistan seized all the offices in
Pakistan of Indian Banks, including PNB's head office, which may have moved to
Karachi. PNB also had one or more branches in East Pakistan (Bangladesh).

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

1969: The Govt. of India (GOI) nationalized PNB and 13 other major commercial
banks on July 19,1969.

1978: PNB opened a branch in London.

1986: The Reserve Bank of India required PNB to transfer its London to State bank
of India after the branch was involved in a fraud scandal.

1993: PNB acquired new bank of India, which the GOI had nationalized

in 1980. 1998: PNB setup a representative office Almaty, Kazakhistan.

2003: PNB took over Nedungadi Bank, the oldest private sector Bank in

Kerala. 2004: PNB established a Branch in Kabul, Afghanistan

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

2012: PNB opened a Branch in Hong Kong.

2014: PNB opened a representative office in Oslo, Norway.

14
Awards and Achievements:

 PNB won IBA Banking Technology Awards 2020.

 BFSI Digital Innovation Awards 2019.
 Best State Nodal Bank Award 2018-2019.
 Digital Payments Award 2018-2019.
 Rajbhasha Kirti Award 2019.
 Bank of the year award 2019.
 PNB wins SCOPE CCE Award 2019.
 PNB wins Governance Now BFSI Awards 2019.

Vision
Punjab National Bank of India (we)will be;

 A relevant business and banking partner to our clients.

 Customer relationship, striving at all time to collaborate with clients in providing

 A forerunner in the market place in terms of profitability, productivity and efficiency.

 Engaged with all over stakeholders and will deliver sustainable and complaints returns.

Mission

We will consistently add value to all our stakeholders and emerge as the ‗best-in
class ‘in the chosen parameters amongst the comity of banks by doubling our
profits, clients and branches within the next three years.

Core values

 Customer center cite

 Ethics

 Transparency

 Teamwork

15
 Ownership

Head Office
 Punjab National Bank of India
 G Block BKC, Bandra East, Mumbai
 Kurla Complex Mumbai,
 Andheri-(e),Maharashtra-400051
 Phone:(11)41032929
 Fax: 02225221331
 Website: www.pnbindia.in
 Corporate office
 Plot No. 4 Sector-10,
 Dwarka New Delhi-110075

Evolution

The idea behind Punjab National Bank named after the Indus valley civilization was
conceived by MR. SRICHAND P. HINDUJA, the head of the Hinduja group. One
of the first new generation private banks in India, Punjab National bank was
inaugurated in April 1994, Dr. Manmohan Singh, the present prime minister of
India, who was then the finance minister of the country. It was established with the
help of collective contributions from the NRI community, toward the economic and
social development of India.

The operations of Punjab National bank were started with a capital base of RS.1000
million. Of the total 1000, Rs.600 million was raised through private placement by
Indian resident and RS.400 million was contributed by NON-RESIDENT Indians
(NRI). A decade after its establishment i.e. in June 2004,Punjab National Bank was
merged with Ashok Leyland Finance Ltd. which was one of the largest leasing
finance and hire purchase companies in India at that time. With this, the bank
increased its customer base and geographical penetration.

16
Branches And Atms

Within a few years of its foundation, Punjab National bank started climbing the
ladder of success and became one of the fastest –growing banks in the Indian
banking sector. By 2006, it had expanded its branch network, from 61 in 2004
to137. Apart from setting up 150 ATM centers of its own the bank also concluded
multilateral arrangements with other banks, taking the total numbers of authorized
ATM outlets to 15,000. All the branches as well as ATMs of Punjab National Bank
are connected to its central database via a satellite that operates on the latest version
of IBM, AS400-720 hardware & midaskapiti (now Misys) software.

Product & Services

Punjab National bank provides Multi–channel facilities, which comprise of ATMs,

Net banking, Mobile banking, Phone banking, Multi-city Banking and International
Debit cards. It is also credited for being one of the first banks to become a part of
RBI‘s Real time gross settlement (RTGS) System. Enlisting the help of KPMG,
Punjab National Bank has adopted an enterprise-wide risk management system,
including global best practices in the area of Risk Management. The other products
and services offered by the bank include

Personal

Banking Accounts, Deposits, loan, Cards-debit card, credit card, gold debit
card, Indus Money Indus project

 Accounts
 Deposits
 Loans
 Cards - Debit Card, Credit Card, Gold Debit Card, Indus Money

Wealth Management Services

 Portfolio Management
 Investments
 Insurance

17
Corporate Banking

 Fund Based Facilities

 Non Fund Based Facilities
 Value Added Facilities
 Supply Chain Management

International Banking

 Correspondent Banking
 Advisory Services A
 Trade Finance
 RFC Account for Residents R

Global Markets Group

This unit has three functional verticals viz the Balance Sheet and Asset Liability
Management, Corporate FX Unit and the Proprietary Trading Unit, with a mix of
support and business functions.

Transaction Banking

Transaction Banking provides solutions under Cash Management Services, Trade

Services, Supply Chain Fin

Others

 Investment Banking
 Treasury
 NRI Services
 Online Banking
 RTGS/ NEFT

18
Capital Structure

The Bank has authorized share capital of Rs.700 crores comprising 594986335
equity shares of Rs.10/- each. As on 31st March, 2015 the Bank has issued,
subscribed and paid-up equity capital of Rs.549.99crores. The Bank‘s shares are
listed on the National Stock Exchange and the Bombay Stock Exchange.

Retail Banking

Punjab National Bank has developed a strong retail banking franchise over the
years. Retail Banking is one of the key drivers of the Bank‘s growth strategy and it
encompasses a wide range of products delivered to customers through multiple
channels. The Bank offers a complete suite of products across deposits, loans,
investment solutions, payments and cards to help customers achieve their financial
objectives. The Bank has continued to develop its risk management capabilities in
Retail business, both from a credit and operations risk standpoint. The total retail
loans portfolio, 88.47% is in the form of secured loans (residential mortgages and
auto loans).

International Retail

International Retail Business focuses specifically on the overseas sales channel,

retail foreign exchange business, remittances and retail businesses in overseas
centers such as Hong Kong and Sri Lanka, where the Bank has a presence. The
Bank continued to have a market leadership position in Travel Currency Cards with
11 currency options other than INR being offered. The aggregate spends on Travel
Currency Cards have crossed USD 3 billion during the year 2012-13.

Business Banking

Business Banking leverages the Bank‘s strengths – a well distributed network of

branches and a strong technology platform to offer the best in transaction banking
services. The Bank is one of the top CMS providers in the country. The Bank acts as
an agency bank for transacting government business offering services to various

19
Central Government Ministries / Departments and other State Governments and
Union Territories. In order to provide solutions for business to effectively manage
their funds flow, the Bank has introduced liquidity management solution for
corporate customers. Similarly, a single window for all payment requirements was
launched with several.

Corporate Credit

Corporate credit advanced features such as setting a daily transaction limit for
corporate users, setting transaction limits for individual beneficiaries, prioritizing
payment methods, and online stop payment and cancellation facilities. Punjab
National Bank has built a strong corporate banking franchise across corporate,
liability and asset businesses. It provides customized structuring and financing
solutions in a timely and comprehensive manner to its corporate customers with a
focus on building out a high quality credit portfolio. The Bank is a market leader in
Debt Capital Markets and loan syndication business across segments, sectors and
geographies.

Treasury

The Bank has an integrated Treasury, covering both domestic and global markets,
which manages the Bank‘s funds across geographies. The Bank‘s treasury business
has grown substantially over the years, gaining market share and continuing to be
among the top five banks in terms of forex revenues. The Treasury plays an
important role in the sovereign debt markets and participates in the primary auctions
held by RBI. It also actively participates in the secondary government securities and
corporate debt market.

International Banking

The international operations of the Bank form a key enabler in its strategy to partner
with the overseas growth potential of its domestic clientele, who are venturing
abroad or require non- rupee funds for domestic projects. The Bank now has a
foreign network of four branches (Singapore, Hong Kong, DIFC (Dubai) and
Colombo (Sri Lanka)) and three representative offices (Shanghai, Dubai and Abu
Dhabi) with presence in six countries. While corporate banking, trade finance,

20
treasury and risk management solutions are the primary offerings through the
branches at Singapore, Hong Kong, DIFC (Dubai) and Colombo, the Bank also
offers retail liability products from its branches at Hong Kong and Colombo.
Further, the Bank ‘s Gulf Co-operation Council (GCC) initiatives in the form of
representative offices in Dubai and Abu Dhabi, and alliances with banks and
exchange houses in the Middle East.

Small And Medium Enterprises

The Small and Medium Enterprises (SME) segment is a thrust area of the Bank. The
business approach towards this segment, which is expected to contribute
significantly to economic growth in future, is to build relationships and nurture the
entrepreneurial talent available. The relationship based approach enables the Bank
to deliver value through the entire life cycle of SMEs. The Bank has segmented its
SME business in three groups: Small Enterprises, Medium Enterprises and Supply
Chain Finance. The Bank extends working capital, project finance as well as trade
finance facilities to SMEs. The Bank has launched ‗Business Gaurav SME Awards
‘in association with Dun & Bradstreet to recognize and award achievers in the SME
space.

Information Technology

Technology is one of the key enablers for business and delivery of customized
financial solutions. The Bank continues to focus on introducing innovative banking
services through investments in scalable and robust technology platforms that
delivers efficient and seamless services across multiple channels for customer
convenience and cost reduction. The Bank has also focused on improving the
governance process in IT. The Bank has launched the Business

Process Management System, a reusable system, which helps to build process

efficiencies across various areas of operations.

The Bank has undertaken various steps in order to align itself towards RBI
guidelines on security and governance, including setting up of Board and Executive
level committees and working on IT operations and other key areas.

21
Agriculture

The Bank continues to drive and expand the flow of credit to the agricultural sector.
759 branches of the bank provide banking services, including agricultural loans, to
farmers. As on 31 March 2015, the banks outstanding loans in the agricultural sector
was INR 148 billion, consulting 7.5% of its total advances.

Management Of Punjab National Bank:

Board of Directors

Table No. 1.2.1

PERSON DESIGNATION

R Seshasayee Chairman

Rameshsobti Managing Director & CEO

Haresh k gajwani Company secretary

Shankerannaswamy Additional Director

Kanchanchitale Independent Non-Executive Director

Vijay vaid Independent Non-Executive Director

T Anantha Narayanan Independent Non-Executive Director

Ranbir Singh Butola Independent Non-Executive Director

Yashodhan M Kale Non-independent & Non-executive Director

1.3 Introduction To The Topic

Customer Relationship Management (CRM):

22
Recently CRM has taken a centre stage in the business world with business
concentrating on saving money and increasing profits by redefining internal processes
and procedures. It costs

on company dramatically less to retain and grows an existing client, then it does to
count new ones. It is said that ―It is seven times more expensive to acquire a new
customer than to keep an existing one.‖ Therefore the value of customer information
and management should never be underestimated.CRM is developing into a major
element of corporate strategy for many organizations .CRM also known by other
terms such as relationship marketing and customer management, is concerned with
creation, development and enhancement of individualized customer relationship
with carefully targeted customers and customer groups resulting in maximizing their
customer life, time value. Industry leaders are now addressing how to transform
their approach to customer management. A new form of cross functional marketing,
i.e. CRM is replacing narrow functionally based traditional marketing. The
traditional approach marketing has been continuously questioned in recent years.

This approaches emphasized on the management of the key marketing mix elements
such as product, price, promotion ,and place within the functional context of
marketing department. The new CRM approach, while recognizing these key
elements still need to be addressed reflect the need to create an integrated cross
function which focus on marketing- one which emphasis keeping as well as wining
customers. Thus, the focus is shifting from customer acquisition to customer
retention and ensuring the appropriate amount of time, money and managerial
resources are directed towards these tasks. The adoption of CRM is being filled by
recognition that long term relationship with customers is one of the most important
assets of the organization and that information- enabled system must be developed
that will give them―customer ownership‖. Successful ownership will create
competitive advantage; will result in improved customer retention and profitability
for the company.

23
AN OVERVIEW:

Businesses today are continuously looking for ways to achieve competitive

advantage. Margins are shrinking, competition is increasing and industries are
consolidated. While customer expectation intensifies for quality, service and
delivery, businesses are reducing staff and the same time searching for ways to
arm employees with information to make better decisions and innovate.
Customer is the most important asset for the businesses

, Consequently, applying some management resources to improve the customers

experience and maximize the profit, potential of that asset is important. The concept
of CRMas a strategy reflects the business process and technology that can be
combined to optimize revenue, profitability and customer loyalty. The CRM market
is evolving rapidly and is one the fastest growing market segments in application
software.CRM has captured the mind share of senior executives across the variety of
industries. With rapid growth of e-customer application and increasing need to sell
to and support customers through internet.

What is CRM?

It is a comprehensive approach that provides seamless coordination between sales,

customer service, marketing and field support and other customer touching
function.CRM integrates people, process and technology to maximize relationship
with all e-customers, distribution channels and suppliers. It is customer focus
business strategy design to optimize the revenue., profitability and customer
loyalty .By implementing a CRM strategy, an organization can improve the business
process and technology solution around selling and marketing and servicing
functions approx. all customer touch-( for e.g.: web ,email ,phone ,fax, in person)

A primary objective of CRM is to provide the entire organization with a complete,

360- degree view of the customer, no matter where the information resides or where
the customer touch point occurred. Today, many businesses manage different CR
with multiple information system, which weaken customer service and ultimate
reduce total sales potential. To realize the benefits, it is important to have an
integrated solution across all customers information systems, trying together the
front and front officer for a complete view of the customers in order to serve them

24
better.

Customer equity comprises of three drives

 Value Equity

 Brand Equity

 Relationship Equity

CRM is something that is not restricted to any country or culture. Whenever

customers are there, business cannot afford to keep them unhappy; and that is where
CRM comes in as a strong requirement.

Why is it necessary?

Customer Relationship Management focuses on acquiring, developing and created

satisfied loyal customer: achieving profitable growth: and creating economic value
in company‘s brand. Customer Relationship Management strives to improve the
customer‘s experience of how they interact with the company and produce high
customer equity the more loyal customer, the higher are the customer equity. Many
companies are turning to customer relationship management system to better
understand customer needs and wants.

CRM applications often used in combination with data warehousing e-commerce

application and call centre, which allows companies to access information about
customer buying history, preferences , complains and other data so they can better
anticipate what customer will want . The goal is to instill greater customer loyalty.

Other benefits include:

 The ability to provide faster response to customer enquiries.

 Increase efficiency through automation.
 Having a deeper knowledge of customer.
 Getting more marketing of cross selling opportunities.
 Identify the most profitable customer.
 Receiving the customer feedback that leads to new and improved product and services.

25
 Doing one to one marketing.

Why now?

What makes CRM appropriate for today’s environment?

While, there are many no of environmental factors and business advancement that
impact and enable the real importance for CRM in today‘s environment is
competitive and differentiation. CRM promises to be competitive and
differentiation in today‘s environment.

Organization today is finding it difficult to compete on the basis of product

technology advancement has enabled the near immediate application of product
features and functions. It is just a matter of weeks between a product launch and
saturation of the market. Price, which has traditionally been another basis of
competitive differentiation, is no longer a means for many to compete. Complex
channel networks have caused parity pricing. Promotion strategies similarly
lessened a means of differentiation .Clubs abound, special offers are the norm, and
sales and continual. Place of distribution has likewise become less influential in the
successor and failure of business. The internet has created an avenue for even the
smallest business to compete.

While all this factors are still important, none of them can alone support the success
of most business. CRM – the ability to provide a more meaningful sales and service
experience promises to be means of differentiating, of providing customer with a
reason to frequent your business rather than that of your competitors. Ownership of
customer relationship provides exponentially greater rewards than differences in
product, price, place, promotion on distribution could ever offer. All of these factors
can even be mitigated, if u can serve as the ones top provider that can identify,
quantify and service customers need.

Implementing CRM:

If CRM involves optimism product, price, place of distribution, promotion, sales

and service, why are so many companies struggling? Has NOT anyone really
mastered the art and science of CRM, if not, why is it so difficult?

26
CRM is difficult because it is an enterprise – wide initiative.CRM is not a
technology initiative. Many have confused CRM as a technology initiative.
Technology is needed in order to implement CRM, particularly the customization
part but technology is not the driver of CRM, or the solution to the successful CRM
implementation.

CRM is not exclusively a marketing initiative. Many organizations have merely

equated CRM with customer- focused marketing, or data driven /data base
marketing. CRM requires marketing expertise. But CRM is not strictly a marketing
initiative

CRM is not exclusively a service initiative. As with sales and marketing, customer
service is one functional aspect of successful CRM implementation. But customer
service is not the sole driver of the process.

CRM involves marketing, sales, service and technology, as well as the other inner
workings of the organization.

Thus, is it properly described as an enterprise-wide initiative. It involves all the

areas of organization and all the functions of organization and it requires all areas of
the organization to be working together in harmony .CRM requires all areas of the
organization to not only exist in harmony, but to be working toward the common
goal of stronger relationship.

Importance:
A CRM strategy is designed to increase revenue and profitability by attracting new
customers, growing customer business, increasing satisfaction loyalty enabling mere
efficient business processes and utilizing lower cost technologies.

The primary goal of CRM is higher revenue, not cutting costs. CRM solutions
improve sales and marketing efforts and enable organizations to provide superior
services to customers.
New customers

are gained and existing are retained and by more in greater quantity and customers
benefits are receiving superior customer services and getting the products and
services they want, when they want them.

27
An enterprise that does not have a CRM strategy or CRM applications is at a
competitive disadvantage. Before engaging on a mission to implement a CRM
strategy, it is critical to determine what the specific objectives are and how to
measure the return on investment. There are sobering statistic that over one-
half of CRM implementation ―fails‖ primarily due to lack of consensus on agreed
–upon and more importantly, measurable goals. While objectives can address
specific points of poor performance, they also address supporting the entire
customer life cycle.

CRM in banking:

Banks become customer- centric. The post- liberalized banking sector in India has
been witnessing spectacular changes. The major reasons for the recent radical
changes in banking industry‘s portfolio are competition, consolidation, information
technology and the need to be customer- centric. Banks should improve the
profitability by adopting strategies like market segmentation, innovation, price
bundling and relationship. Due to increased financial market products like
commercial papers, and variety of financial instruments, big corporate clientele of
several commercial banks have shifted their loyalty, and have been raising resources
from the market directly and commercial banks have become more retail customer-
centric by offering wide range of services. Banks have identified new customers
segments like students, working women and high rich net worth individuals.

Customer Relation Profitability:

Regulated era have given assured profits to banks, but in the cost deregulation
period as margins are falling down substantially, as banks are concentrating on
customer relationship.

Banking services can be divided into three categories:

 Core services,
 Facilitating services
 Supporting services.

Core service is the reason for being in the market. Facilitating services are needed so
that the core service can be used and supporting service exactly discriminates the

28
service package from the services of competitors.

CRM is the base on which the structure of retail banking will evolve. The cost to
develop customer relationship is always higher than the revenue, but when the
relationship rose, new demands will appear and then the incremental revenue would
be higher than the incremental cost.

Customer service delivery is vital for the success of banking operations. This is not
possible only through technology. Process consistency within and service channels
is paramount. Banks are increasingly making investment in a single type of process
rather investing in assets of processes that depend on human resource policies.

Who are HNI customers?

 They are HIGH NET WORTH INDIVIDUAL Customers.

 They are the major targets for private banks.
 They are high profile customers.
 They have income of above Rs.10 lakhs p.a.
 The customer who can at least a very amount in their accounts.
 Bank tries to maintain long term relationship with these clients.
 HNI customers have a relationship manager.

How to approach HNI customers?

Approaching to prospective is very important for any organization. If banks rightly
approach customers then a long term relationship can be expected. Following are the
steps how a bank approaches to HNI customers.
1. Data collection:
Normally banks maintain their data bank which is collected from various
sources like credit cards holders, different account holder‘s primary data,
yellow pages, directories.
2. Tele calling:
Once a data is collected then the tele-callers call upon to these contacts and
make the client aware about various facilities provided by the banks. If the
clients show their inclination then an appointment is fixed with these clients and
the relationship managers visits the clients.

29
3. Role of relationship manager:
This appointment is lead. This lead is transferred to other relationship manager
and client is approached personally. Relationship manager explains the facilities
provided and take note to the client‘s additional needs which can also be
fulfilled by their services. If the client is convinced the lead converts in
customer form.
4. Corporate banking:
Relationship manager analyses the requirement of a customer and provide the
best suited products. The relationship manager explains the various investment
options available in the market and gives the opportunity to select from the
options which is suitable to him.
5. Portfolio management:
If the customer has invested then the role of the manager is to design his
portfolio keeping in mind the risk and return factors. Portfolio manager provide
these customers the requisite information about the investment opportunities
available in the market according to the profile of the customer.
6. Handling enquiries:
Services and time to time updating of the market circumstances are shared with these
customers.
The relationship manager with the help of other officers clarifies the doubts and
enquiries are handled with a special care.

What Is Electronic Customer Relationship (ECRM)?

Superior customer service is a critical differentiator in an increasingly competitively
marketplace. Companies that give customer what they want it will increase
customer satisfaction and ultimately gain greater market share, generating more
revenue and enjoying higher profitability.
ECRM is a practice that encompasses all marketing activities directed toward
establishing, developing and maintaining successful customer relationship. The
focus of relationship marketing is on developing long-term relationships and
improving corporate performance through customer loyalty and customer retention.
With the advent of the internet the dynamics of business have changed forever.
Traditional business influences differentiators such as location; convenience and
switching cost have become much less relevant. For businesses and organizations
around the world, from banks and mortgage companies to manufactures, universities

30
and service companies –the playing field has been quickly and radically leveled.
In the new business environment, one of the only ways left to differentiate your
organization from the competition is the quality of your customer service. Superior
customer service gives customer real reasons for doing businesses with companies.
That‘s why industry analyst agree that inter based customer service is one of the
biggest and most crucial opportunities available on web today.
ECRM can be seen as a means of gaining competitive advantage, especially through
the acquisition of intangible assets, such as knowledge, commitment and trust.
Therefore, from a relationship marketing standpoint, particular importance is placed
on achieving the goals of generating and increasing intangible resources.
Communications, transaction activities, information research are all parts of
traditional marketing, but can marketers improve or streamline these traditional
marketing processes? If we look toward and apply some of the ubiquitous electronic
communications facilities, such as e-mail, online discussion groups and the World
Wide Web readily at hand, and investigate some of the more esoteric electronic
marketing resources, these processes can be improved or streamlined .With these
tools you can better research your products or services industry, better research
environmental trends ,better target your markets, maintain better knowledge of and
communications with your current and prospective customers, and receive almost
instantaneous feedback on new products and services.

Why Employ ECRM?

1. Companies need to take firm initiatives on the ECRM frontier to optimize

the value of interactive relationship.
2. Enable the business to extend its personalized reach.
3. Company-ordinate marketing activities across all customer channels.
4. Leverage customer information for more effective e-marketing and e-business.
5. Focus the business on improving customer relationship and earning a greater
share of each.
6. Customer‘s business through consistent measurement, assessment and
―actionable customer strategies.

31
The six “E’s” of ECRM:
1. Electronic channels
2. Enterprise
3. Empowerment
4. Economics
5. Evaluation
6. External Information

E-CRM

E-CRM
BENEFITS TO
BANK

E-CRM
BENEFITS TO
CUSTOMERS

1. Relationship with the customers. 1. Customer interaction.

2. Using e-mails for business communication‘. 2. Convenience.
3. Personalized services. 3. Speed of processing.
4. Websites to market product/services.4. Service quality and trust.
5. Transaction security.

CRM strategies:

Many companies have CRM strategies that seek to develop additional sales from
certain existing customers. Best practice companies to do this, too, and also have
strategies that focus on the enables of the end-customer relationship. For example:

 Process.

 Technology.

 People.

32
New Strategies For Customer Management Relationship

CRM practices have traditionally included sales activities, marketing, customer care
and even technical support. The ―reactive‖ strategy stalls collections activity- and
payment- until the customer is well post due. A new ―preventive‖ collections
approach that combines advanced technology and sophisticated billing analytics
identifies revenue recovery opportunities early in the payment cycle. It secures
payment before the customer eve reaches the collections stage.

Seven key steps to establish and manage a preventive collections

strategy are:

 Choose the right person.

 Provide upfront and ongoing training.

 Control customer services quality and performance.

 Leverage customer data to build prevention strategies.

 Provide access to all customer contact channels.

 Deliver global consistency.

 Provide motivation and incentives.

Once best-practice companies put a strategic capability in place to enable CRM,

they tend to modify the vision to the capability for customer bonding, a learning
relationship and competitive advantage. Increasingly companies are going to believe
that customer data are so important as financial data.

33
Three companies lie for Punjab National Bank’s swipe business:
Three global payment processing giants, Global Payments, World Pay and Total
System Services(TSYS), are bidding for PUNJAB NATIONAL BANK‘s network
of more than two lakh credit and debit card swipe machines business valued at
Rs1,200 core, or $200million, banking sources familiar with the matter said.

Two largest US processes-Global Payments Inc and TSYS- as well as UK-based

World Pay have valued the PUNJAB NATIONAL BANK network slightly below
the asking price. World Pay, formerly a unit of Royal bank of Scotland, is now
majority owned by private equity giants Advent International and Bain capital.
PUNJAB NATIONAL BANK declined to comment on speculation, when contacted.
This could be one of the largest M&A deals in India ‘s booming electronic payment
industry.

34
 Table 1.3.1(Replacing hard cash)

BANKS POS Terminals (lakh)

ICICI Bank Ltd. 25.7L

HDFC Bank Ltd. 23.9L

PUNJAB NATIONAL BANK 22.7L

Ltd.
State Bank of India 10.1L

American Express bkg. Corp. 20,496

Citibank 15,486

Corp Bank 14,141

IDBI 14,046

HSBC 11,070

PNB 10,015

ICICI Bank sold its network of swipe machines to First Data Corporation for $90
million in 2009. Japanese giant Hitachi acquired Prism Payments, a Mumbai-based
manager of ATM and swipe machines, for $220 million last month.

ICICI Bank has the largest network of 2.54 lakh swipe machines followed by HDFC
Bank with 2.4 lakh.

PUNJAB NATIONAL BANK, the country‘s third largest private lender, also ranks
number three in POS terminals with 2.27 lakh machines. These terminals facilitate
cashless shopping transactions by swiping credit or debit cards, helping merchants
to reduce risks and costs in handling cash.

Domestic card payments are reporting explosive growth with the Reserve Bank of
India (RBI) asking banks to issue debit cards to all accounts holders and increase
their network of merchants accepting the cards. For instance, there are 36crore debit
cards compared to 1.84crore cards in the country currently.

35
Debit card holders are increasingly opting for cashless shopping, unlike in the past
when done the cards were used mostly for cash withdrawals from ATM machines.
In industry parlance, the banks that install the swipe machines are called the
‗acquiring bank‘.

Merchants retain a commission for every cashless transaction while bulk of the
transaction fees goes to the banks, which also bags the current account of the
shopping outlets.

36
 CHAPTER 2

LITERATURE REVIEW

37
U .Zeynep Ata et al (2006)The goal is to investigate the effects of customer
relationship management (CRM) practices on customer satisfaction and firm
performance in business-to- business (B2B) markets. It indicates that CRM adoption
has a significant positive effect on both customer satisfaction and organizational
performance in B2B settings. CRM adoption is also found to affect organizational
marketing performance significantly, but not financial performance. It enhances
customer satisfaction leads to better organizational performance in the B2B
organization. Environmental dynamism and competition was found to have a
negative moderating effect on the relationship between customer satisfaction and
organizational performance. .

Yonggui Wang et al (2007) CRM seeks to extend the resource-based view to the
context of customer relationship management. It is intended to develop a
measurement model of customer relationship management (CRM) capabilities, and
to explore the key antecedents and performance consequences of CRM capabilities.
A three-factor (customer interaction management capability, customer relationship
upgrading capability and customer win-back capability) measurement model of
CRM capabilities is developed and tested. It also supports the hypothesized
influences of customer orientation, customer-centric organizational system and
CRM technology on CRM capabilities, as well as the influence of CRM capabilities
on organizational performance.

Yonggui Wang et al (2007) CRM theory aims in knowing how can a new
information technology's (IT's) early momentum toward widespread adoption and
eventual institutionalization be sustained. It is to examine sustaining technological
momentum as a form of institutional work and entrepreneurship not widely
recognized. The advertisement section's producers employed it over several years to
recurrently produce and disseminate credible discourse advancing CRM,
incorporating models for action, and providing fresh meanings to the organizing
vision for this technology so as to accentuate its progress and keep it worthy of
continued attention. Most significantly, acquired momentum, while problematic to
sustain, can nevertheless serve as its own resource, to be continuously reinvested in

38
the form of public discourse which must itself be kept ―lively‖ so that
momentum may be extended.

Peggy E. Chaudhry et al (2008) The words in the CRM (Customer Relationship

Management) have become short-hand buzz words for describing how firms foster a
360- degree review of the customer lifecycle. It provides details of innovative CRM
concepts that can assist entrepreneurial small firms develop a process to effectively
communicate with their customers, such as an e-newsletter and CD-ROM direct
mail campaign. The CRM process is developed by using multiple communication
channels, building loyalty, establishing customer retention tactics, and changing
service offers to foster the customer experience

Aihie Osarenkhoe et al (2008) The components of customer relationship

management (CRM) strategy to its implementation are insufficient. The insights are
on the core components of CRM and the implementation of CRM strategy. The
relationships are not only a tactical weapon, but represent a different, strategic
approach to buyer-seller exchange. It shows that implementing sustainable CRM
strategy requires the endorsement by and commitment from top management,
systematic cross-functional communication, and mandatory customer loyalty
training programmers for all employees. A process-oriented integrative framework
that facilitates successful implementation of a sustainable CRM strategy is
necessary. It links components of CRM strategy with the key dimension of its
implementation

Mike Hoots (2009) Customer relationship management (CRM) means developing a

comprehensive picture of customer needs, expectations and behaviors and managing
those factors to affect business performance. In the facilities management (FM)
world, CRM means looking at the FM function as a customer-intensive business
function instead of merely a facilities services cost centre. And the management part
implies an active rather than passive role by the FM in influencing the customer's
perception of service success. Finding and closing gaps between customer

39
expectations and service delivery realities becomes the basis for CRM in the FM
world. These gaps typically occur in the area of the resources, response and respect.
Key areas of knowledge and skills covered in this paper include: defining CRM and
distinguishing it from customer service; understanding the true measure of service
success; uncovering the main impediment to service success and the main source of
customer dissatisfaction; discovering and defining resource, response and respect
gaps between customer expectations and service delivery realities; revealing
unsatisfactory results of gaps; pinpointing strategies to close resource, response and
respect gaps between customer expectations and service delivery realities; reliably
saying ‗yes‘ to every single constructive customer request – never say ‗no‘ again.

Yonggui Wang et al (2010) In the modern customer-centered era, customer value

is a strategic weapon in attracting and retaining customers. Delivering superior
customer value has become a matter of ongoing concern in building and sustaining
competitive advantage by driving customer-relationship-management (CRM)
performance. It develops an integrative framework for customer value and CRM
performance based on the identification of the key dimensions of customer value.
Emphasizing the customer equity-based view, it decomposed the effects of customer
value on CRM performance in terms of relationship quality and customer behaviors

Radioboron (2012) The introduction of CRM in various settings, from departments

to corporations, and the changes, commitment and support that are required to make
the implementation of CRM a success are the major ingredients of CRM. CRM is a
strategy not a solution and can provide enormous competitive advantage if
implemented in a co-operative environment. The committed involvement of senior
management is essential in promoting and supporting the concept of customer
relationship management within the organization. It also shows how customer
relationship management may be used in different areas of business, such as human
resources.

40
Henning Gebert et al (2012)The concepts of customer relationship management
(CRM) and knowledge management (KM) both focus on allocating resources to
supportive business activities in order to gain competitive advantages. CRM focuses
on managing the relationship between a company and its current and prospective
customer base as a key to success, while KM recognizes the knowledge available to
a company as a major success factor. From a business process manager‘s
perspective both the CRM and KM approaches promise a positive impact on cost
structures and revenue streams in return for the allocation of resources. However,
investments in CRM and KM projects are not without risk, as demonstrated by
many failed projects. The benefit of using CRM and KM can be enhanced and the
risk of failure reduced by integrating both approaches into a customer
knowledge

management (CKM) model. In this regard, managing relationships requires

managing customer knowledge – knowledge about as well as from and for
customers. In CKM, KM plays the role of a service provider, managing the four
knowledge aspects: content, competence, collaboration and composition

Lawrence A. Crosby (2013) There is a popular misconception about the nature of

customer relationship marketing/management limit the effectiveness of CRM. The
companies misled by an over-reliance on technology, lack of strategic perspective,
use of faulty metrics, inadequate segmentation, neglect of brand considerations,
blind faith in data, and confusion regarding leadership roles. It provides guidance on
how to successfully execute a customer relationship strategy

YurongXuet al (2014) CRM impelled the growth of both B2B and B2C markets.
The mistaken concept of CRM may have disastrous effects on the company. The
basic concept of CRM, elaborates the characteristics, reviews its brief history and
addresses the current status of CRM. It develops the extended concepts of CRM
from micro- and macro- perspectives. In the ―Implementation and tips‖ section, it
concludes the proper steps to approach CRM and how to bear a right attitude
towards CRM solutions.

41
Kracklauer et al (2015).Customer relationship management (CRM) is an emerging
strategic approach in the consumer goods sector. In the past, collaboration between a
supplier and a retailer started with category management and soon proved to
generate a mutual benefit for both parties and for the consumer as well (creating a
win-win-win-situation). First movers in implementing the new strategic concept,
like Procter & Gamble, report increased sales and a significant higher customer
retention rate. Beside enhanced sales it also helps to exploit cost saving potentials in
the value chain. The concept supports target-oriented-marketing-efforts and makes
marketing investments of suppliers and retailers more efficient.

Shahla Butler (2016) In order to comprehensively answer the research questions,

literature is reviewed on customer relationship management. To appreciate the
specific nature of

customer relationship management, it was essential to first explore general customer

relationship management literature. Emerging technologies have enabled companies
to collect, store, and analyze customer information in ways that have greatly
improved their ability to attract and retain customers. Enterprises can practice
effective customer relationship management (CRM) by using analytical techniques
to implement customer treatment strategies based on predictive modeling that draws
on a wealth of data about customer behavior.

(Helms, 2017) Competing with low-cost strategy and differentiation strategies may
involve benefits that are not based on advantages of larger market shares and scale
economies

(Furreretal, 2018). An optimal strategy that can be theoretically defined; and

corresponding to each resource configuration there seems to exist a unique optimal
region in strategy space »

42
(Henderson, 2019) Cost leadership strategies are unlikely to work and the event
organizer must address competitive advantage via differentiation and focus
strategies (frank, ronalde and lodhal, 2019) It is pertinent to distinguish between the
‘decision- maker’ and the user of the products, When the purchase is made for the
family unit. When the use make decision-make are Different, the former influence
the latter.

(Geistfeld , Sproles and baenop, 2019) Developed a similar but more refined
hierarchy of intrinsic product character tics. Level A is an abstract level with
multidimensional product character tics that are general and reflect the overall
character of product. Level B identified multidimensional nature of overall character
tics such as durability, revealing the quality of a textile product.

(Gupta, S. L and palsumithra, 2019) They consider that culture can be broadly
classified into internal material culture and External / internal material culture. The
former can categorize ‘cognitive component’

43
 CHAPTER-3

RESEARCH
METHODOLOGY

44
3.0 RESEARCH METHODOLOGY:

The research methodology used for the study is very rigorous. Questionnaire is
made, interviews with customers are held and various books and websites are
consulted for various types of information related to study. The methodology so
applied is briefly discussed below step by step.

Therefore, marketing research can be defined as the systematic design, collection,

analysis, and reporting of the data and finding relevant to a specific marketing
situation facing the bank.

3.1 STATEMENT OF THE PROBLEM:

What is the effectiveness of CRM in development of customer satisfaction?

The objective of the study is to identify how a customer is profitable to

PUNJAB NATIONAL BANK and to enhance the profitability of the HNI
customers.

3.2 JUSTIFICATION OF THE STUDY:

A CRM program will allow a business to make new customers, service the
customers, increase the value of customers to the company, retain good customers,
and determine which customers can be retained to given a higher level of service
and turning them into loyal customers and ultimately increasing the profit for banks.
The customer satisfaction is also known why they preferred PUNJAB NATIONAL
BANK and factor influencing their satisfaction level. As customer is very important
for the banks and also, they contribute profitability for them but it is not necessary
that every customer generate revenue for the banks; hence the scope of the project is
to identify the non- profitable customers and converting them profitable customers.

3.3 Objectives Of The Study:

Main Objective:

To analyze the Customer Relationship Management in ‗PUNJAB NATIONAL BANK ‘.

45
Sub Objectives Of The Study:

1. Ascertaining the behavior and perception of the existing customers towards

product and services in banking.

2. To identify and study the various ways of ensuring customer satisfaction

adopted by PUNJAB NATIONAL BANK. .

3. Analyzing customer feedback.

3.4 Scope Of The Study:

 The scope of the project was quite wide because in this project an attempt was
made to analyze of customer relationship management in PUNJAB NATIONAL
BANK, therefore

CRM is the heart of every business success. With CRM, we will easily
understand customer requirement, needs effectively and predict market trends
and conditions.

 A CRM program will allow a business to make new customers, service the
customers, increase the value of customers to the company, retain good
customers, and determine which customers can be retained to given a higher
level of service and turning them into loyal customers and ultimately increasing
the profit for banks.

 The customer satisfaction is also known why they preferred PUNJAB

NATIONAL BANK and factor influencing their satisfaction level. As customer
is very important for the banks and also they contribute profitability for them
but it is not necessary that every customer generate revenue for the banks; hence
the scope of the project is to identify the non- profitable customers and
converting them profitable customers.

Therefore, customer satisfaction is very necessary as when the customer delighted

he switch to more product and services thus we can see that the scope of this res
each is very wide and comprehensive.

46
3.5 RESEARCH DESIGN:

It is the basic plan which guides the researchers in the collection and analysis of data
required for practicing the research product. In fact the research is the conceptual
structure with which research is conducted. It consists the blue print for the
collection, measurement and analysis of the data i.e., followed completing the study
to ensure that study is relevant to the problem and will follow the predetermine and
set data.

3.6 COLLECTION OF DATA:

SAMPLE METHOD

Random sampling was chosen as the sample selection procedure.

SAMPLE UNIVERSE
My sample universe for research IS the HNI customer of PUNJAB NATIONAL BANK
, Panipat.

SAMPLE UNIT

The respondents who are asked to fill out the questionnaire are the sampling
unit. These comprise of govt. employees, self-employed, housewives etc.

SAMPLE FRAME

The sample frame of this project is existing customers of PUNJAB NATIONAL BANK.

SAMPLE SIZE

The sample size is taken to be of 100 HNI customers and asked them to fill the questionnaire.

3.7 Sources Of Data Collection:

Primary Data: This data was collected directly from respondents by

personal interview through questionnaire.
47
Secondary Data: Secondary data is the data which already exists and
was collected for some other purpose. The secondary data is basically
collected from websites, books, magazines and journals.

3.8 Sampling Technique:

Random Sampling: It is the best sample procedure as individual customer in the

bank is chosen and requested to take out certain time for an interview and filling of
the questionnaire. A sa

mple size of 100 HNI customers in taken randomly so that the conclusion is not
biased and great care is taken.

SYSTEMATIC SAMPLING: Individuals are selected at regular intervals

from the sampling frame. The intervals are chosen to ensure an adequate
sampling size.

3.9 ANALYTICAL TOOL USED IN STUDY:

For the purpose of analysis of data, a number of financial and statistical

techniques have been used in this study. the tools used for analysis of
tables were ratio analysis, compound growth rate, annual average
growth rate and growth rate, In the case of impact of electronic banking
on profitability of banking econometrics models were used. Discovering
and understanding the link between electronic banking and bank
performance is an empirical issue. A commonly used measure of bank
performance is the level of bank profits. Bank profitability can be
measured by the return on a bank‘s assets (ROA), the ratio of pre-tax
profits to equity (ROE). In this study we use past data for our models.

3.10 Limitations Of The Study:

48
During the project following limitations are known:-

 The area was large and it is not possible to deal with each and every customer.

 Time was the major constraint as, I have only 6 weeks and the area is very
vast even though, I have put up the best of my efforts to cover all the areas
given to me.

 Many of the customers were not co-operative.

 As PUNJAB NATIONAL BANK is a big brand, many times the answers of

the respondents may be affected by his of good and bad experience about some
other product.

 Geographical area is one of the constraints, as the study is limited only to the
PUNJAB NATIONAL BANK, Panipat.

 Some of the customer shows biasness and give wrong information.

49
 CHAPTER 4

DATA ANALYSIS
&
INTERPRETATION

50
4. Data Analysis And Interpretation:

Q1. Which age groups do you belong?

Table No. 4.1(Age Group)

Age Group

Less than 14%

25
25 to 45 50%

40 to 55 25%

Above 55 11%

Fig.No. 4.1 (Age Group)

Age Group
Less than 25

25 to 45

40 to 55

Above 55

Interpretation:

After looking this bar graph, it can be said the middle-aged group are the main
customer of the banks as they occupied almost 75% of this graph. The bank has a
huge potential in terms of the untapped market Young and old age group people.
High pay packages to today‘s employed youth and large saving with the old age
people (especially in urban areas) has made them attractive potential customers.

51
Q2. Which sector are you working in?

Table No.4.2

Working Sector

Education 37%

Business 28%

Finance 12%

IT 10%

Others 13%

Fig.No.4.2 (No. of Customers)

Education Business Finance IT

Others

Interpretation:

Most of the education class people prefer to open a Savings Account in comparison
to the business class people. This may be possible due to the facility of
―Anywhere Banking‖ suiting their needs and preferences.

52
Q3. Do you agree that PUNJAB NATIONAL BANK offers variety of products?

Table No. 4.3

Results

Strongly agree 13%

Agree 22%

Normal 23%

Disagree 21%

Strongly disagree 21%

Fig.No.4.3 (No. of Customers)

Interpretation:

Product variety does not make any difference as far as opening the account in the
PUNJAB NATIONAL BANK is concerned, as the bar diagram is vividly revealing
that more or less people of every segment of group have opened and are opening
the account expert one group
i.e., Strongly agree group where emphasis is required to penetrate this group so it
can be said that the target group of the PUNJAB NATIONAL BANK, specially for

53
saving account are of every segment of group since it is devoted to render best
services to its customer.

Q4. What features/attributes, do you expect from a bank while opening an account?
Table No. 4.4 (Features to be Expect)

Features to Expect

Quick Services 40%

Proper Information 22%

Working Hours 15%

Less Formalities 13%

Variety of Product 10%

Fig.No.4.4 (Features to be Expect)

Interpretation:

When a customer visits any bank the first and foremost thing he expects is the
quickness of service and the promptness in entertaining by the bank employee.
Second thing customer wishes to have is proper information regarding his queries.
One this in this bar also really significant is, factor like less formalities of document

54
while opening an account. Varieties of product do not make a big impact on
customer behavior for opening an account in any bank if its services are efficient.
But on the other hand bank can‘t ignore working hours.

Q5. Do bank have centralized database for customer information?

Table No.4.5 (No. of Customers)

Percentage of Customers

Yes 77%

No 23%

Fig. No.4.5(No. of Customers)

Interpretation:

77% customer agreed that bank have a centralized database for customer
information. Reason is that customer supports this technology method.

Q6. Do bank customize their products and services according to customers’ needs?

55
 Table No. 4.6 (No. of Customers)

Percentage of Customers

Yes 65%

No 35%

Fig.No.4.6 (No. of Customers)

Interpretation:

As it is said a satisfied customer is the best medium for advertisement since in this
bar depicts bank customize its products and services according to customer needs
time to time to provide maximum satisfaction to their customers.

Q7. What kind of assistance do you think bank need to generate more business?

56
 Table No. 4.7 (No. of Customers)

Remarks

Training about customer handling. 45%

Helpdesk of the branch 30%

Generating leads by the company. 20%

Any others (specify) 5%

Fig. No.4.7 (No. of Customers)

Interpretation:

As this pie chart shows that training about the customer handling is the most
sufficient method to train the advisors, with its unique facilities features, and
ability to serve all the needs of customer. Efforts must be given to know why they
are people who are still saying helpdesk is the poor method.

Q8. How many times the bank contacted you for updating their plans and services?

57
 Table No. 4.8(No. of Customers)

Customers

Once in a week. 40%

Once in a month. 23%
Once in 6 months. 22%
Once in year. 7%
Can‘t say 8%

Fig. No.4.8 (No. of Customers)

Interpretation:

Rating of any bank depends on its overall performance in the eye of the people. This
bar is vividly showing that the contact done by Punjab National Bank has been
conducted once in a week because in such a short span of its existence in this city
with strong competition from major public sector bank like SBI and other private
banks, Reason for this could be, it has occupied a different position in the people
mind with its customer friendly products and to serve them a efficient and prompt
banking system.

Q9. Does PUNJAB NATIONAL BANK looks into the feedback provided by
you and takes necessary actions if required?

58
 Table No. 4.9(No. of Customers)

Customers

Yes 70%

No 30%

Fig.No.4.9 (No. of Customers)

Interpretation:

As this bar graph showing 70% people happy about their solved queries, while it
should be 100% result.

Q10. Is the information in the bank statement clear, easy to understand and adequate?

59
 Table No. 4.10 (No. of Counters)

Customers

Yes 82%

No 18%

Fig.No.4.10(No. of Counters)

Yes

No

Interpretation:

As this bar graph showing 82% people are saying bank provides sufficient
information which is clear, understandable and adequate.

Q11. How you measure your satisfaction regarding salary and savings account

60
services provided by Punjab National Bank?

Table No. 4.11 (No. of Customers)

Very good 20%

Good 28%

Satisfactory 24%

Excellent 16%

Poor 12%

Fig.No.4.11 (No. of Customers)

Interpretation:

This graph shows that mostly people are satisfied with the services of salary and
Savings account provided by bank.

Q12. Are you satisfied with the services provided by bank?

Table No. 4.12(No. of Customers)

Custome
61
rs
 Yes 78%

No 22%

Fig.No.4.12 (No. of Customers)

Interpretation:

Large percentage of people 78% are satisfied and happy with the services
provided by the bank.

Q13. Which channel you use to access your account?

Table No.4.13(No. of Channels)

Channel to Access
Account
62
 Direct Branch 48%

Mobile Banking 12%

Net Banking 20%

Phone Banking 20%

Fig.No.4.13 (No. of Channels)

Interpretation:

Mostly people use direct branch to access their account but users of mobile
banking, net banking or phone banking are also in very good number. It shows
that lot of customers uses e-banking to access their account.

Q14. Do you have any other product of PUNJAB NATIONAL BANK other
than savings and salary account? (Like term deposit, mutual funds, insurance,
home loan, car loan etc.)

Table No.4.14(No. of Customers)

63
 Other Product

Yes 80%

No 20%

Fig.No.4.14 (No. of Customers)

Interpretation:

It shows that 80% of people also uses services like term deposit, mutual funds,
insurance, home loan, car loan other than savings and salary account.

64
 CHAPTER 5

FINDINGS, SUGGESTIONS
& CONCLUSION

65
5.1 FINDINGS:

 RBI allowed foreign banks to invest in both private and public sector banks to
recognize the importance of customer relationship management in their growth
and customer retention.

 The officials try to make best relation with the banks.

 37% education class people prefer to open account in comparison to 28%

business class people. This may be possible due to the facility of
―Anywhere Banking‖ suiting their needs and preferences.

 23% normal agree group is required to penetrate to open an account. So it can be

said that the target group of the PUNJAB NATIONAL BANK, especially for
saving account are of every segment of group since it is devoted to render best
services to its costumer.

 40% customers are impressed by the quick services provided by the PUNJAB
NATIONAL BANK. All other services such as proper information and working
hours are essential but a quick consulting service attracts customers to PUNJAB
NATIONAL BANK.

 77%customers are in favor that bank provides information by using centralized

database. Most of the respondents are having more than 2 accounts and holds
more than 2 products with PUNJAB NATIONAL BANK.

 65% customers said banks should innovate the products and services according
to their needs. Moreover bank trying to fulfill these needs of other 35%
customers who are not fully satisfied with the banks services. Greater retention
of customer is being needed as they are offering various products and
services .This enables a great understanding of what customer may expect from
the bank and what to offer to them. This leads to defining where each customer
is in relationship with the bank so that cross selling can be done.

 PUNJAB NATIONAL BANK can generate more business by assistance their

employees training that how to handle the customer and its information. It needs
to be 100% in place of 45%.

66
 40% of the customers are updated in a week and they are satisfied with the way
their accounts are managed.23%are updated in a month and 6% in a month.

 The customers of the PUNJAB NATIONAL BANK are fully efficient according
to the bank‘s responses and they quickly sought out their grievances and
mistakes. According to them, the bank has improved its services and also the
overall the satisfaction of the customers has also improved.

 82% agree that bank‘s information are clear, easy to understand and adequate.

 Customer‘s remarks regarding salary and savings account facilities are overall
good as 28%. 20% HNI customers agree on rewarded bank‘s services by very
good appraisal.

 Large percentage of people 78% are satisfied and happy with the services
provided by the bank.

 48% people use direct branch to access their account but 12% users of mobile
banking, 20% net banking or 20% phone banking are also in very good number.
It shows that lot of customers uses direct banking to access their account

 It shows that 80% of people also uses services like term deposit, mutual funds,
insurance, home loan, car loan other than savings and salary account.

67
5.2 CONCLUSION:

PUNJAB NATIONAL BANK has a strong brand name in the Chandigarh city. The people of
Chandigarh city are good in investment part and most of them go for FDS AND LIs rather

investing in mutual fund products. Thus there is need to convert the people in
mutual funds and credit cards for increasing the profitability of bank.

PUNJAB NATIONAL BANK sought profitable customer and generated profits

from them and taken steps by converting the non- profitable customer to profitable
customers.

Customer can be pulled into profitability area when the customer is satisfied with
the product and services which he or she is using. Customer satisfaction plays an
important role as customers are satisfied and retained in the bank by which they will
look for some other product also. At this state, relationship manager is very
important who will serve the customers in best way and suggest the customers
which products should they use with reference to their needs.

Banks must maintain mutual relationship between the relationship manager and customer.

ECRM, lead to better understanding of all aspect of customer behavior regarding

issues and benefit offered by bank and helps to differentiate it-self from others.

The project was full of learning and experiments and provides me with a great
knowledge about banking sector. I came to know about the export and import
formality that a company has to perform when it export and import the goods.
Through this I came to know about the operations and activities performed by
PUNJAB NATIONAL BANK and the kind of products and services provided by
PUNJAB NATIONAL BANK. It was a great opportunity to learn about corporate
culture and etiquettes. I have interacted with a lot of people personally during these
6 weeks .study of company profile was done before starting the project which helps
me a lot while interacting with people. During the course of time, I tried to get all
the objectives of the project to be fulfilled.

68
5.3 SUGGESTIONS:

 Mostly service class persons prefer the PUNJAB NATIONAL BANK in the
comparison of business and students and other class persons thus it needs to
promote its product and

services that are offered mainly for the business class people and students.
Because these two class forms major users of the banking services.

 PUNJAB NATIONAL BANK is normally not using properly for the current
account so its popularity ratio is quite down. This bank normally using for the
long term planning like saving and FD.

 This bank is not investing more into the marketing sector so I will suggest that
some of the part of income it investing in the advertising and marketing sector.

 Into the comparison of other bank its performance is quite good but not an
effective so this may be doing the rates were down with some other facilities.

 PUNJAB NATIONAL BANK should work upon its Field Networking and
services to enhance more credibility.

 If PUNJAB NATIONAL BANK wants to compete with the rivals like ICICI &
HDFC, they should minimize the AQB so that they can increase customer
database.

 New and innovative product should be launched to attract more customers.

 To eliminated is satisfaction, proper workshops and awareness programs like

campaign are helpful and held on the client origination.

 More number of branches should be opened to make the PUNJAB NATIONAL

BANK product and services reach in hands of customers.

 More number of operational staff should be hired to complete the job in more
speed and in an efficient manner.

69
BIBLIOGRAPHY

70
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73
Annexure

74
 Dear Sir/Madam
I am a BBA student of Piet College, Samalkha and presently doing a summer
internship project on "Customer Relationship Management of Punjab National
Bank". I request you to kindly fill the questionnaire below and I assure you that
the data generated shall be kept confidential.

Individual details of respondents:-

Name:
Age:
Gender:
Designation:

Q1. Which age groups do you belong?

a. Less than 25
b. 25 to 45
c. 40 to 55
d. Above 55

Q2. Which sector are you working in?

a. Education
b. Business
c. Finance
d. IT
e. Others

Q3. Do you agree that PUNJAB NATIONAL BANK offers variety of products?

a. Strongly agree
b. Agree
c. Normal
d. Disagree
e. Strongly disagree

75
Q4. What features/attributes, do you expect from a bank while opening an account?
a. Quick Services
b. Proper Information
c. Working Hours
d. Less Formalities
e. Variety of Product

Q5. Do bank have centralized database for customer information?

a. Yes

b. No

Q6. Do bank customize their products and services according to customers’ needs?

a. Yes
b. No

Q7. What kind of assistance do you think bank need to generate more business?
a. Training about customer handling.
b. Helpdesk of the branch
c. Generating leads by the company.
d. Any others (specify)

Q8. How many times the bank contacted you for updating their plans and services?

a. Once in a week.
b. Once in a month.
c. Once in 6 months.
d. Once in year.
e. Can‘t say

Q9. Does PUNJAB NATIONAL BANK looks into the feedback provided by

76
you and takes necessary actions if required?

a. Yes
b. No

10. Is the information in the bank statement clear, easy to understand and adequate?
a. Yes
b. No

Q11. How you measure your satisfaction regarding salary and savings account
services provided by Punjab National Bank?

a. Very good
b. Good
c. Satisfactory
d. Excellent
e. Poor

Q12. Are you satisfied with the services provided by bank?

a. Yes
b. No

Q13. Which channel you use to access your account?

a. Direct Branch

b. Mobile Banking

c. Net Banking

d. Phone Banking

14. Do you have any other product of PUNJAB NATIONAL BANK other than
savings and salary account? (Like term deposit, mutual funds, insurance, home

77
loan, car loan etc.)
a. Yes
b. No

78
79