of 85 /85
11 CONTENTS SL.No. Topics Chapter-1 Introduction of the study Chapter-2 Introduction of the organization Chapter-3 Discussion on training Chapter-4 Findings Chapter-5 Observation, Suggestion & Recommendation Chapter-6 Summary Chapter-7 Webliography & Questionnaire


Embed Size (px)

Text of project

Page 1: project



SL.No. Topics

Chapter-1 Introduction of the study

Chapter-2 Introduction of the organization

Chapter-3 Discussion on training

Chapter-4 Findings

Chapter-5 Observation, Suggestion & Recommendation

Chapter-6 Summary

Chapter-7 Webliography & Questionnaire

Page 2: project

T.John College, BangaloreRole of I.T. in Banking Industry



Introduction of the study

Overview of the studyRole of I .T. in bankingObjective of the studyScope of the studyMethodology of the studyLimitations of the study

Page 3: project

T.John College, BangaloreRole of I.T. in Banking Industry


INTRODUCTION OF THE STUDYBANKINGBanking, the business of providing financial services to consumers and businesses. The basic services a bank provides are checking accounts, savings accounts and time deposits that can be used to save money for future use; loans that consumers and businesses can use to purchase goods and services; and basic cash management services such as check cashing and foreign currency exchange.

TYPESFour types of banks specialize in offering these basic banking services:1) Commercial banks,2) Savings and loan associations,3) Savings banks, and4) Credit unions.

A broader definition of a bank is any financial institution that receives, collects, transfers, pays, exchanges, lends, invests, or safeguards money for its customers. This broader definition includes many other financial institutions that are not usually thought of as banks. These institutions include financeCompanies, investment companies, investment banks, insurance companies, pension funds, security brokers and dealers, mortgage companies, and real estate investment trusts.

The following are the Scheduled Banks in India (Public Sector):

State Bank of India State Bank of Bikaner and Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Saurashtra State Bank of Travancore Andhra Bank Allahabad Bank

Page 4: project

T.John College, BangaloreRole of I.T. in Banking Industry


Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Dena Bank Indian Overseas Bank Indian Bank Oriental Bank of Commerce Punjab National Bank Punjab and Sind Bank Syndicate Bank Union Bank of India United Bank of India UCO Bank Vijaya Bank

The following are the Scheduled Banks in India (Private Sector):

ING Vysya Bank Ltd Axis Bank Ltd Indusind Bank Ltd ICICI Bank Ltd South Indian Bank HDFC Bank Ltd Centurion Bank Ltd Bank of Punjab Ltd IDBI Bank Ltd

The following are the Scheduled Foreign Banks in India: American Express Bank Ltd. ANZ Grid lays Bank Plc. Bank of America NT & SA Bank of Tokyo Ltd. Banquc Nationale de Paris Barclays Bank Plc Citi Bank N.C. Deutsche Bank A.G. Hongkong and Shanghai Banking Corporation Standard Chartered Bank.

Page 5: project

T.John College, BangaloreRole of I.T. in Banking Industry


The Chase Manhattan Bank Ltd. Dresdner Bank AG.

PURPOSEBanking services serve two primary purposes. First, by supplying customers with the basic mediums-of-exchange (cash, checking accounts, and credit cards), Second, by accepting money deposits from savers and then lending the money to borrowers, banks encourage the flow of money to productive use and investments. This in turn allows the economy to grow. Enabling the flow of money from savers to investors is called financial intermediation, and it is extremely important to a free market economy.

TECHNOLOGYThere is an imperative need for not mere technology up gradation but also its integration with the general way of functioning of banks to give them an edge in respect of services provided to their constituents, better housekeeping, optimizing the use of funds and building up of MIS for decision making, better management of assets & liabilities and the risks assumed which in turn have a direct impact on the balance sheets of banks as a whole. Technology has demonstrated potential to change methods of marketing, advertising, designing, pricing and distributing financial products and services and cost savings in the form of an electronic, self-service product delivery channel. These challenges call for a new, more dynamic, aggressive and challenging work culture to meet the demands of customer relationships, product differentiation, brand values, reputation, corporate governance and regulatory prescriptions. Technology holds the key to the future success of Indian Banks.Internet, wireless technology and global straight-through processing have created a paradigm shift in the banking industry. The explosive growth of both the Internet and mobile and wireless technology is revolutionizing the way the financial industry conducts business. The overall wireless technology market is expected to grow profoundly in the coming years.


Page 6: project

T.John College, BangaloreRole of I.T. in Banking Industry


The role of information technology (IT) in the banking industry. Based on the technological innovations have enabled the industry to open up efficient delivery channels. It is said that IT has helped the banking industry to deal with the challenges the new economy poses. The study also examines the views of bank employees on the implementation of IT in banks. According to the observation, private and foreign banks use more IT-related banking services than public sector banks. OVERVIEW OF THE STUDYIf one were to say that the future of banking in India is bright, it would be a gross understatement. With the growing competition and convergence of services, the customers (you and I) stand only to benefit more to say the least. At the same time, emergence of a multitude of complex financial instruments is foreseen in the near future (the trend is visible in the current scenario too) which is bound to confuse the customer more than ever unless she spends hours (maybe days) to understand the same. Hence, I see a growing trend towards the importance of relationship managers. The success (or failure) of any bank would depend not only on tapping the untapped customer base (from other departments of the same bank, customers of related similar institutions or those of the competitors) but also on the effectiveness in retaining the existing base. India has witness to a sea change in the way banking is done in the past more than two decades. Since 1991, the Reserve Bank of India (RBI) took steps to reform the Indian banking system at a measured pace so that growth could be achieved without exposure to any macro environment and systemic risks. Some of these initiatives were deregulation of interest rates, dilution of the government stake in public sector banks (PSBs), guidelines being issued for risk management, asset classification, and provisioning. Technology has made tremendous impact in banking. ‘Anywhere banking’ and ‘Anytime banking’ have become a reality. The financial sector now operates in a more competitive environment than before and intermediates relatively large volume of international financial flows. In the wake of greater financial deregulation and global financial integration, the biggest challenge before the regulators is of avoiding instability in the financial system.

Page 7: project

T.John College, BangaloreRole of I.T. in Banking Industry


NEED FOR THE STUDY The deeper the company understands of consumer’s

needs and satisfaction, the earlier the product or service is introduced ahead of competition, the greater the expected contribution margin. Hence the study is very important.

This study will help companies to customize the service and product, according to the consumer’s need.

This study will also help the companies to understand the experience and expectations of the existing customers.

OBJECTIVES OF THE STUDYThe vital objectives of this project are-

To enhance and sharpens skill. To get awareness about changing business environment in

banking. To understand the retail banking process. To find out the differences among perceived service and

expected service. To produce an executive service report to upgrade service

characteristics. To understand consumer’s preferences. To access the degree of satisfaction of the consumers

SCOPE OF THE STUDYThis study is limited to the consumers within the city. The study will be able to reveal the preferences, needs, satisfaction of the customers regarding the banking services w.r.t. the new technology, It also help banks to know whether the existing products or services they are offering are really satisfying the customer’s needs or not.

1. The Perception of Employees towards the Implementation of Information Technology in the Bank.

2. To assess the Customers' Satisfaction Level towards the Use of Information Technology related Services in the Bank.

METHODOLOGY OF THE STUDYA descriptive study tries to discover answers to the questionswho, what, when, where, and, sometimes, how. The researcher

Page 8: project

T.John College, BangaloreRole of I.T. in Banking Industry


attempts to describe or define a subject, often by creating a profile of a group of problems, people, or events. Such studies may involve the collection of data and the creation of a distribution of the number of times the researcher observes a single event or characteristic (the research variable), or they may involve relating the interaction of two or more variables. Organizations that maintain databases of their employees, customers, and suppliers already have significant data to conduct descriptive studies using internal information. Yet many firms that have such data files do not mine them regularly for the decision-making insight they might provide.This descriptive study is popular in business research because of its versatility across disciplines. In for-profit, not-for-profit and government organizations, descriptive investigations have a broad appeal to the administrator and policy analyst for planning, monitoring, and evaluating. In this context, how questions address issues such as quantity, cost, efficiency, effectiveness, and adequacy. Descriptive studies may or may not have the potential for drawing powerful inferences. A descriptive study, however, does not explain why an event has occurred or why the variables interact the way they do.

SAMPLE METHODConvenience sampling method is used for the survey of thisproject. It is a non-probability sample. This is the least reliable design but normally the cheapest and easiest to conduct .In this method Researcher have the freedom to choose whomever they find, thus the name convenience. Example includes informal pools of friends and neighbours or people responding to a newspaper’s invitation for readers to state their position on some public issue.

SAMPLE SIZESample size denotes the number of elements selected for thestudy. For the present study, 100 respondents were selected atrandom. All the 100 respondents were the customers of P.N.B. branch.

SAMPLING METHODA sample is a representative part of the population. In sampling technique, information is collected only from a representative

Page 9: project

T.John College, BangaloreRole of I.T. in Banking Industry


part of the universe and the conclusions are drawn on that basis for the entire universe.A convenience sampling technique was used to collect data from the respondents.

METHOD OF DATA COLLECTIONTo know the response, the researcher used questionnairemethod. It has been designed as a primary research instrument.Questionnaires were distributed to respondents and they were asked to answer the questions given in the questionnaire.The questionnaires were used as an instrumentation technique,because it is an important method of data collection. The success of the questionnaire method in collecting the information depends largely on proper drafting. So in the present study questions were arranged and interconnected logically. The structured questionnaire will reduce both interviewers and interpreters bias.Further, coding and analysis was done for each question’sresponse to reach into findings, suggestions and finally to theconclusion about the topic.

TYPES OF DATAEvery decision poses unique needs for information, and relevant strategies can be developed based on the information gathered through research. Research is the systematic objective and exhaustive search for and study of facts relevant to the problem Research design means the framework of study that leads to the collection and analysis of data. It is a conceptual structure with in which research is conducted. It facilitates smooth sailing of various research operations to make the research as effective as possible.

PRIMARY DATAPrimary data are those collected by the investigator himself for the first time and thus they are original in character, they are collected for a particular purpose.A well-structured questionnaire was personally administrated to the selected sample to collect the primary data.


Page 10: project

T.John College, BangaloreRole of I.T. in Banking Industry


Secondary data are those, which have already been collected by some other persons for their purpose and published. Secondary data are usually in the shape of finished products.Two types of secondary data were collected for the preparation of the project work:

Internal Data was generated from company’s brochures, manuals and annual reports

External Data, on the other hand, was generated from magazines, research books, intranet and internet (websites).


Although the study was carried out with extreme enthusiasm and careful planning there are several limitations, which handicapped the research viz,

1. Time Constraints:The time stipulated for the project to be completed is less and thus there are chances that some information might have been left out, however due care is taken to include all the relevant information needed.

2. Sample size:

Page 11: project

T.John College, BangaloreRole of I.T. in Banking Industry


Due to time constraints the sample size was relatively small and would definitely have been more representative if I had collected information from more respondents.

3. Accuracy:It is difficult to know if all the respondents gave accurate information; some respondents tend to give misleading information.

4. It was difficult to find respondents as they were busy in theirschedule, and collection of data was very difficult. Therefore, the study had to be carried out based on the availability of respondents.



Overview of the organizationHistory of the organizationImpact of I.T. in BankingProduct Profile of the organizationOrganizational StructureMarket Profile of the organization

Page 12: project

T.John College, BangaloreRole of I.T. in Banking Industry



Punjab National Bank of India, the first Indian bank started only with Indian capital, was nationalized in July 1969 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 (Kazakhstan), Shanghai (China) and in London and a fully fledged Branch in Kabul (Afghanistan). Punjab National Bank with 4497 offices and the largest nationalized bank are serving its 3.5 crore customers with the following wide variety of banking services:

Page 13: project

T.John College, BangaloreRole of I.T. in Banking Industry


Corporate banking Personal banking Industrial finance Agricultural finance Financing of trade International banking

Punjab National Bank has been ranked 38th amongst top 500 companies by The Economic Times. PNB has earned 9th position among top 50 trusted brands in India. Punjab National Bank 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.


Punjab National Bank (PNB) was registered on May 19, 1894 under the Indian Companies Act with its office in Anarkali Bazaar Lahore. The Bank is the second largest government-owned commercial bank in India with about 4,500 branches across 764 cities. It serves over 37 million customers. The bank has been ranked 248th biggest bank in the world by Bankers Almanac, London. The bank's total assets for financial year 2007 were about US$60 billion. PNB has a banking subsidiary in the UK, as well as branches in Hong Kong and Kabul, and representative offices in Almaty, 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

Page 14: project

T.John College, BangaloreRole of I.T. in Banking Industry


present. (The first entirely Indian bank, the Ouch Commercial Bank, was established in 1881 in Faizabad, but failed in 1958.) PNB's founders included several leaders of the Swadeshi movement such as Dyal Singh Majithia and Lala HarKishen Lal, Lala Lalchand, Shri Kali Prosanna Roy, Shri E.C. Jessawala, Shri Prabhu Dayal, Bakshi Jaishi Ram, and Lala Dholan Dass. Lala Lajpat Rai was actively associated with the management of the Bank in its early years.

1904: PNB established branches in Karachi and Peshawar. 1940: PNB absorbed Bhagwan Dass Bank, a scheduled

bank located in Delhi circle. 1947: Partition of India and Pakistan at Independence. PNB

lost its premises in Lahore, but continued to operate in Pakistan.

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

1961: PNB acquired Universal Bank of India. 1963: The Government of Burma nationalized PNB's

branch in Rangoon (Yangon). September 1965: After the Indo-Pak war the government

of Pakistan seized all the offices in Pakistan of Indian banks, including PNB's head office, which may have moved to Karachi. PNB also had one or more branches in East Pakistan (Bangladesh).

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

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

1976 or 1978: PNB opened a branch in London. 1986 The Reserve Bank of India required PNB to transfer

its London branch to State Bank of India after the branch was involved in a fraud scandal.

Page 15: project

T.John College, BangaloreRole of I.T. in Banking Industry


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

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

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

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

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

2005: PNB opened a representative office in Dubai. 2007: PNB established PNBIL - Punjab National Bank

(International) - in the UK, with two offices, one in London, and one in South Hall. Since then it has opened a third branch in Leicester, and is planning a fourth in Birmingham. Gatin Gupta became Chairmen of Punjab National Bank.

2008: PNB opened a branch in Hong Kong. 2009: PNB opened a representative office in Oslo, Norway.


Punjab National Bank announced its Q1FY2010 results on 29 July 2009, delivering 62% y-o-y growth in net profits to Rs832 crore (Rs512cr), substantially ahead of

Page 16: project

T.John College, BangaloreRole of I.T. in Banking Industry


expectations on account of large treasury gains, apart from healthy operating performance.

While the bank’s deposit growth was reasonably robust at 4.4% sequentially and 26.5% y-o-y, unlike the peers its growth in advances also remained strong at 38% y-o-y.

In spite of being at the forefront of PLR cuts, the bank posted a healthy growth in Net Interest Income (NII) of 29% y-o-y.

Other Income surged 113% y-o-y, driven by strong treasury gains of Rs355 crore during the quarter in line with industry trends, even as Fee income was also robust at 45% y-o-y, on the back of strong balance sheet growth.

Operating expenses were higher than expected on account of Rs150 crore of provisions for imminent wage hikes.

Gross and Net NPA ratios remained stable sequentially at 1.8% and 0.2%, with the bank not adopting the guidelines of treating floating provisions as part of tier 2 capital instead of adjusting against NPAs on express permission from the RBI.



To evolve and position the bank as a world class, progressive, cost effective and customer friendly institution providing comprehensive financial and related services.

Integrating frontiers of technology and serving various segments of society especially weaker section.

Committed to excellence in serving the public and also excelling in corporate values


To provide excellent professional services and improve its position as a leader in financial and related services.

Page 17: project

T.John College, BangaloreRole of I.T. in Banking Industry


Build and maintain a team of motivated workforce with high work ethos.

Use latest technology aimed at customer satisfaction and act as an effective catalyst for socio economic development.


Bonding and Integrity Ethical conduct Periodic disclosure Confidentiality and fair dealing Compliance with rules and regulations


1). Technology has opened up new markets, new products, new services and efficient delivery channels for the banking industry. Online electronics banking, mobile banking and internet banking are just a few examples.

2). Information Technology has also provided banking industry with the wherewithal to deal with the challenges the new economy poses. Information technology has been the cornerstone of recent financial sector reforms aimed at increasing the speed and reliability of financial operations and of initiatives to strengthen the banking sector.

3). The IT revolution has set the stage for unprecedented increase in financial activity across the globe. The progress of technology and the development of world- wide networks have significantly reduced the cost of global funds transfer.

4). It is information technology which enables banks in meeting such high expectations of the customers who are more demanding and are also more techno-savvy compared to their counterparts of the yester years. They demand instant, anytime and anywhere banking facilities.

Page 18: project

T.John College, BangaloreRole of I.T. in Banking Industry


5). IT has been providing solutions to banks to take care of their accounting and back office requirements. This has, however, now given way to large scale usage in services aimed at the customer of the banks. IT also facilitates the introduction of new delivery channels - in the form of Automated Teller Machines, Net Banking, Mobile Banking and the like. Further, IT deployment has assumed such high levels that it is no longer possible for banks to manage their IT implementations on a standalone basis with IT revolution, banks are increasingly interconnecting their computer systems not only across branches in a city but also to other geographic locations with high-speed network infrastructure, and setting up local area and wide area networks and connecting them to the Internet. As a result, information systems and networks are now exposed to a growing number.

Technology Products

(1). Net Banking

(2). Credit Card Online

(3). Mobile Banking

(4). Net Safe

(5). Online Payment of Excise & Service Tax

(6). Bill Payment

(7). Shopping

(8). Railway Ticket Booking through SMS

(9). Smart Money Order

(10). Funds Transfer (e- Cheques)

(11). Internet Banking

(12). Bank@ Home

(13). One View

Page 19: project

T.John College, BangaloreRole of I.T. in Banking Industry


(14). Insta Alerts

(15). e-Monies Electronic Fund Transfer

(16). Phone Banking

(17). Ticket Booking

(18). Prepaid Mobile Recharge

(19). Card to Card Funds Transfer

(20). Anywhere Banking

(21). Mobile Banking

(22). Cash on Tap:

(i) Express Delivery

(ii) Normal Delivery


Many Benefits of Technology

Page 20: project

T.John College, BangaloreRole of I.T. in Banking Industry


• Increased operational efficiency, profitability & productivity

• Superior customer service • Multi-channel, real-time transaction processing • Better cross-selling ability • Improved management and accountability • Efficient NPA and risk management • Minimal transaction costs • Improved financial analysis capabilities Focus aspects of Commercial Banking now are:

Page 21: project

T.John College, BangaloreRole of I.T. in Banking Industry






POS Terminals and Electronic

Banking Corporate



MIS & Intrane




Any Branch

Card Managem

ATMsCore Banking

Page 22: project

T.John College, BangaloreRole of I.T. in Banking Industry


I.T Payment and Settlement Systems

Page 23: project

T.John College, BangaloreRole of I.T. in Banking Industry


Secured NettingSystems





Payment Versus




Of Securities

Page 24: project

T.John College, BangaloreRole of I.T. in Banking Industry



Presently, it is the second largest bank of the country rendering a wide variety of banking services:

CENTRALISED BANKING SOLUTION (CBS)CBS, an inter-branch networking and data-sharing platform helps to operate account from any city in India having CBS networked branches. Changing status from Customer of the Branch’ to ‘Customer of the Bank’, presently, there are over 2,616 CBS networked brandies in 820 cites.

NRI’S & TOURISTSCurrency exchange services are being provided by our 68 Exchange Bureau’s spread throughout the country.

ONLINE TAX PAYMENTPNB provides the facility of online payment of service tax, excise duty, DGFT, custom duty & all charges urlderMCA2l

Page 25: project

T.John College, BangaloreRole of I.T. in Banking Industry


CASH MANAGEMENT SERVICE (CMS)PNB’s CMS facilitates management of receivables and payments in technology driven environment, ensuring availability of funds at reduced cost, helping reconciliation at multi location accounts besides providing customized MIS.

MUTUAL FUNDS & INSURANCEThe bank has tied-up with Principal Financial Group for providing Mutual Funds and Insurance services & also tied up for distribution & marketing of UTI Mutual Funds.

NRI SERVICESNRE, FCNR, RFC, NRO Deposit a/c investment Management & Housing Loan facilities for NRI’s.

FOREIGN EXCHANGEPNB has 150 branches authorized for handling foreign exchange business and these branches have been provided with SWIFT connectivity to ensure faster realization of funds.

Page 26: project

T.John College, BangaloreRole of I.T. in Banking Industry


e-MONEYINDIASend money to the loved ones in India through PNB’s e-Money India service. Draft delivery across 4,038 locations and Bank Credit to over 2,500 branches in India.


Say goodbye to long queues. PNB offers online booking & information through IRCTC payment gateway. Just click and travel comfortably.

DEPOSITORY SERVICEPNB Depository service provides the facility of having shares & securities in Demat form & executes transactions of sales & purchase hassle free electronically.

LOCKERSNow, customer can relax with assurance of having your locker at the PNB branch nearest to their home.

Page 27: project

T.John College, BangaloreRole of I.T. in Banking Industry


CUSTOMER CARE FACILITYAll the banking queries and problems are just a call away! PNB presents 24 hr. customer care facility. Call at toll free no. at 1800180 2222 from MTNL/BSNL or 0124-2340000 from other no’s.

PNB GOLD COINPNB gives opportunity to dazzle the well wishers, patrons, partners and acquaintances with the mystical charisma of PNB’s 999.9 fineness pure 24-carat gold coins and to convey the true value of treasured relationship. Enjoy guarantee of purity & weight of hallmarked gold coins.


Avail ECS for quick movement of funds in a paperless mode & EFT to ensure an expeditious transfer of funds by using electronic media.

WEALTH MANAGEMENT SERVICEPNB provides customized financial advisory services for individuals that includes Mutual Funds, insurance, Retirement

Page 28: project

T.John College, BangaloreRole of I.T. in Banking Industry


Planning, Tax planning, & Debt Management to customers for wealth Maximization.

ONLINE BILL PAYMENTNo more queues to pay your bills. Now pay telephone, mobile, electricity, insurance & several other bills 24 hours, 365 days, from the desktop.


CAR LOAN/2 WHEELER LOANDrive dream car/bike home. PNB gives loan for the purchase of new/ old car, van or jeep, new bike at very attractive interest rates with a convenient repayment period.

LOAN AGAINST JEWELLERYLoans against Gold & Jewellery for individuals/business enterprises, both for business & personal needs.


Page 29: project

T.John College, BangaloreRole of I.T. in Banking Industry


Maximize business turnover with PNB trader’s loan with minimum paper work and attractive rate of interest, for whole sellers, dealers, distributors, individuals, firms, registered cooperative societies & companies. Loans are also available for purchase of shop /showroom.

HOUSING LOANBring own dream home to life. Avail ‘flexi’ housing loan and have the advantage of substantial savings on the interest component. Insurance covers for home loan borrowers are available.

PERSONAL LOANSA scheme to meet all types of personal needs, for permanent / confirmed employees / Defence Personnel and Professionally Qualified Doctors.

CORPORATE LOANSCorporate can expand & diversify with user friendly Corporate Loans Products Working Capital, Term Loan, Bank Guarantee, Letter of Credit & others.

Page 30: project

T.John College, BangaloreRole of I.T. in Banking Industry


EDUCATIONAL LOANAvail “Sarvottam Shiksha & Vidyalakshyapurti” schemes for studies In India & abroad and ensure a great career for child.

PNB GRAMIN CHIKITSAKScheme for financing qualified medical practitioners for setting up clinics in rural areas at concessional rate of interest.

LOAN TO PENSIONERSPNB values the traditions of India by giving special benefits to the senior citizens.

LOANS TO WOMENPNB’s “Mahila Sashaktikaran Abhiyaan” & “Mahila Samridhi Yojana” give special benefits to women customers that help in building their confidence & self-esteem.

Page 31: project

T.John College, BangaloreRole of I.T. in Banking Industry



PNB MET LIFEDelighting depositors with life insurance by extending the facility of insurance cover (death only) to all Saving Fund & Current Account (Individuals) holders.

PNB VIDYARTHI ACCOUNTEmpowering the young generation with a zero balance account for students with overdraft facility.

TOTAL FREEDOM SALARY ACCOUNTDiscover the freedom of flexibility with PNB’s Total Freedom Account. A zero balance account for employees having salary account in the bank, with overdraft facility.

PNB TAX SAVERPNB offers term deposit scheme to avail tax benefit under Sec 80(C)2 (xxi) of income Tax Act.

PNBMITRAPNB offers no frill saving account for financial inclusion.

Page 32: project

T.John College, BangaloreRole of I.T. in Banking Industry


How to Ensure Security??-A Framework





Page 33: project

T.John College, BangaloreRole of I.T. in Banking Industry



Mr. B.L. Meena (Branch Manager)

Mr. Sanjay Kumar (Asst. Manager)

Mr. S.K. Mishra (Head Cashier)

Mr. A.K. Srivastava (Clerk)

Mr. Mithilesh Kr. Karn (Business Facilator)

Page 34: project

T.John College, BangaloreRole of I.T. in Banking Industry




Banking in India

Banking in India originated in the first decade of 18th century. The General Bank of India came into existence in 1786. This was followed by Bank of Hindustan. Both these banks are now defunct. The oldest bank in existence in India is the State Bank of India being established as "The Bank of Bengal" in Calcutta in June 1806. A couple of decades later, foreign banks like Credit Lyonnais started their Calcutta operations in the 1850s. At that point of time, Calcutta was the most active trading port, mainly due to the trade of the British Empire, and due to which banking activity took roots there and prospered. The first fully Indian owned bank was the Allahabad Bank, which was established in 1865.By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which were founded under private ownership. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers. The banking in India was controlled and dominated by the presidency banks, namely, the Bank of Bombay, the Bank of Bengal, and the Bank of Madras - which later on merged to form the Imperial Bank of India, and Imperial Bank of India, upon India's independence, was renamed the State Bank of India. The presidency banks were like the central banks and discharged most of the functions of central banks. They were established under charters from the British East India Company. The exchange banks, mostly owned by the Europeans,

Page 35: project

T.John College, BangaloreRole of I.T. in Banking Industry


concentrated on financing of foreign trade. Indian joint stock banks were generally under capitalized and lacked the experience and maturity to compete with the presidency banks, and the exchange banks. There was potential for many new banks as the economy was growing. Under these circumstances, many Indians came forward to set up banks, and many banks were set up at that time, and a number of them set up around that time continued to survive and prosper even now like Bank of India and Corporation Bank, Indian Bank, Bank of Baroda, and Canara Bank.

GROWTH AND PRESENT STATUS OF THE INDUSTRYBy 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 nationalize 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 Nationalization." 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. Jay prakash 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 (Acquit ion and Transfer of Undertaking) Bill, andit received the presidential approval on 9th August, 1969.A second dose of nationalization of 6 more commercial banks followed in 1980.The stated reason for the nationalization was to give the government more control of credit delivery. With the second dose of nationalization, the GOI controlled around 91% of the banking business of India.After this, until the 1990s, the nationalised banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy.

LIBERALISATIONIn the early 1990s the then Narasimha Rao government embarked on a policy of liberalization and gave licenses to a

Page 36: project

T.John College, BangaloreRole of I.T. in Banking Industry


small number of private banks, which came to be known as New Generation tech-savvy banks, which included banks suchas UTI Bank (the first of such new generation banks to be set up), ICICI Bank and HDFC Bank. This move along with the rapid growth in the economy of India, kick started 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.

CURRENT SCENATIOCurrently (2010), overall, banking in India is considered as fairly mature in terms of supply, product range and reach. Even though reach in rural India still remains a challenge for the private sector and foreign banks. Even in terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets-as compared to other banks in comparable economies in its region.Indian economy is expected to be strong for long time-especially in its services sector. The demand for banking services-especially retail banking, home loans and investment services are expected to be strong.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. Currently, India has 88 scheduled commercial banks (SCBs) - 28 public sector banks (that is with the Government of India holding a stake), 29 private banks (these do not have government stake) and 31 foreign banks. They have a combined network of over 55,000 branches and 17,000 ATMs.

Page 37: project

T.John College, BangaloreRole of I.T. in Banking Industry


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.

FUTURE OF THE INDUSTRYA healthy banking system is essential for any economy striving to achieve good growth and yet remain stable in an increasingly global business environment. The Indian banking system, with one of the largest banking networks in the world, has witnessed a series of reforms over the past few years like the deregulation of interest rates, dilution of the government stake in public sector Banks (PSBs), and the increased participation of private sector banks. The growth of the retail financial services sector has been a key development on the market front. Indian banks (both public and private) have not only been keen to tap the domestic market but also to compete in the global market place. New foreign banks have been equally keen to gain a foothold in the Indian market.The momentum in credit growth has been maintained during 2005-06 due to two factors: The corporate sector has stepped up its demand for credit to fund its expansion plans; there has also been a growth in retail banking. However, even as the opportunities increase, there are some issues and challenges that Indian banks will have to contend with if they are to emerge successful in the medium to long term. This report discusses these issues and challenges -- both intrinsic and external, such as:

Risk management and Basel IIThe future of banking will undoubtedly rest on risk management dynamics. Only those banks that have efficient risk management system will survive in the market in the long run. The effective management of credit risk is a critical component of comprehensive risk management essential for long-term success Of a banking institution.Although capital serves the purpose of meeting unexpected losses, capital is not a substitute for inadequate decontrol or risk management systems. Coming years will witness banks striving to create sound internal control or risk management processes.

Page 38: project

T.John College, BangaloreRole of I.T. in Banking Industry


With the focus on regulation and risk management in the Basel II framework gaining prominence, the post-Basel II era will belong to the banks that manage their risks effectively. The banks with proper risk management systems would not only gain competitive advantage by way of lower regulatory capital charge, but would also add value to the shareholders and other stakeholders by properly pricing their services, adequate provisioning and maintaining a robust financial structure.‘The future belongs to bigger banks alone, as well as to those which have minimized their risks considerably.’

ConsolidationConsolidation, which has been on the counter over the last year or so, is likely to gather momentum in the coming years. Post April 2009, when the restrictions on operations of foreign banks will go, the banking landscape is expected to change dramatically. Foreign banks, which currently account for 5% of total deposits and 8% of total advances, are devising new business models to capture the Indian market. Their full-fledged entry is expected to transform the business of bankingin many ways, which would be reflected in terms of greater breadth of products, depth in delivery channels and efficiency in operations.Thus Indian banks have less than three years to consolidate their position. Despite the stiff resistance from certain segments, consolidation holds the key to future growth. This view is underpinned by the following:

Owing to greater scale and size, consolidation can help save costs and improve operational efficiency.

Banks will also have to explore different avenues for raising capital to meet norms under Basel-II

Owing to the diversified operations and credit profiles of merging banks, consolidation is likely to serve as a risk-mitigation exercises as much as a growth engine.

Though there is no confirmation yet, speculative signals arising from the market point to the prospect of consolidation involving banks such as Union Bank of India, Bank of India, Bank of Baroda, Dena Bank, State Bank of Patiala, and Punjab and Sind Bank. Further, the case for merger between stronger banks hasalso gained ground — a clear deviation from the past when only weak banks were thrust on stronger banks. There is a case being made for mergers between banks with a distinct

Page 39: project

T.John College, BangaloreRole of I.T. in Banking Industry


geographical presence coming together to leverage their respective strengths.

GLOBALIZATION/ OVERSEAS EXPANSIONGrowing integration of economies and the markets around the world is making global banking a reality. The surge in globalization of finance has already begun to gain momentum with the technological advancements which have effectivelyovercome the national borders in the financial services business. Widespread use of internet banking will widen frontiers of global banking, and make marketing of financial products and services on a global basis possible. In the coming years globalization will spread further on account of the likely opening up of financial services under WTO. India is one of the 104 signatories of Financial Services Agreement (FSA) of 1997. This gives India’s financial sector including banks an opportunity to expand their business on a quid pro quo basis.As per Indian Banks' Association report ‘Banking Industry Vision 2010’, there would be greater presence of international players in Indian financial system and some of the Indian banks would become global players in the coming years. So, the new mantra for Indian banks is to go global in search of new markets, customers and profits.

REGULATIONSThe RBI's approval for banks to raise funds abroad through innovative capital instruments holds great significance. Such fund-raising, which includes preference shares, will, however, not just substitute equity; it could have unintended consequences on the strategies of banks and their profitability. While the cost of raising monies through such instruments is likely to be higher (close to 10 per cent), the consequent higher leverage on equity funds is likely to result in expansion of return on net worth. This is because the same amount of capital supports a higher volume of business, generating higher profits. Banks are likely to be able to raise long-term preference shares at coupon rates between six per cent and eight per cent. The positive impact on bank profitability could thus be significant. Preference capital can be used as the currency for acquisition. The advantage for public sector banks is that they no longer need to bother about government stake falling below 51 per cent. Banks such as Dena Bank, Oriental Bank of

Page 40: project

T.John College, BangaloreRole of I.T. in Banking Industry


Commerce and Andhra Bank are most likely to benefit from this move.

SKILLED MANPOWERThere will be a sea change for employees too. Secure jobs will be replaced by contractual appointments, for a specified period of time. The unions will merge into the shadows and bank managements will turn effective. As a result there will be swifter turn- over of personnel in banks. But at the same time, skilled personnel from other disciplines will enter banks in increasing numbers. Factors like skills, attitudes and knowledge of the human capital play a crucial role in determining the competitiveness of the financial sector. The quality of human resources indicates the ability of banks to deliver value to customers. Capital and technology are replicable but not the human capital which needs to be valued as a highly valuable resource for achieving that competitive edge. Business model, which comprises a comprehensive range of business solutionsdelivered through a unique balance of portfolio and relationship management must be incorporated.

FUTURE CHALLENGES Competition Challenges Customer Retention Globalization Shrinking Margin

SUGGESTIONS Strong In-house research & market Intelligence Focused marketing- Focus on region-specific campaigns

rather than national media campaigns

The growth of the retail financial services sector has been a key development on the market front. Indian banks (both public and private) will not only be keen to tap the domestic market but also to compete in the global market place. New foreign banks will be equally keen to gain a foothold in the Indian market.


Page 41: project

T.John College, BangaloreRole of I.T. in Banking Industry


To evolve and position the bank as a world class, progressive, cost-effective and customer friendly institution providing comprehensive financial and related services: integrating frontiers of technology and serving various segment ofsociety especially the weaker section of the society: committed to excellence in serving the public and also excelling in the corporate values. Corporate excellence emanate from good corporate governance exercised by adopting standard of transparency, accountability, professionalism, social responsiveness, and ethical business practices with this in view, the has been making efforts for adopting the best practices. The bank commitment towards corporate governance is to bestow greater transparency and openness in the management and to ensure best performance by staff atall the levels to maximize the operational efficiency. Adopting the corporate governance as a work ethos, the bank is committed to enhancing the stakeholders value.

PRESENT STATUS OF THE ORGANIZATIONWith its presence virtually in all the important centers of the country, Punjab National Bank offers a wide variety of banking services which include corporate and personal banking, industrial finance, agricultural finance, financing of trade and international banking. Among the clients of the Bank are Indian conglomerates, medium and small industrial units, exporters, non-resident Indians and multinational companies. The large presence and vast resource base have helped the Bank to build strong links with trade and industry.Punjab National Bank is serving over 3.5 crore customers through 4540 Offices including 421 extension counters - largest amongst Nationalized Banks.Punjab National Bank with 112 year tradition of sound and prudent banking is one among 300 global companies and seven Indian companies which are expected to emerge as challengers to World’s leading blue chip companies. While among top 1000 world banks, “The Banker”, the leading magazine in London, has placed PNB at the 248th position, the bank features at 1308th position among Forbe’s Global 2000 list of global giants and fast growing companies.At the same time, the bank has been conscious of its social responsibilities by financing agriculture and allied activities and

Page 42: project

T.John College, BangaloreRole of I.T. in Banking Industry


small scale industries (SSI). Considering the importance of small scale industries bank has established 31 specialised branches to finance exclusively such industries. Strong correspondent banking relationship which Punjab National Bank maintains with over 200 leading international banks all over the world enhances its capabilities to handle transactions world-wide. Besides, bank has Rupee Drawing Arrangements with 15 exchange companies in the Gulf and one in Singapore. Bank is a member of the SWIFT and over 150 branches of the bank are connected through its computer- based terminal at Mumbai. With its state-of-art dealing rooms and well-trained dealers, the bank offers efficient forex dealing operations in India.The bank has been focusing on expanding its operations outside India and has identified some of the emerging economies which offer large business potential. Bank has set up representative offices at Almaty: Kazakhistan, Shanghai: China and in London. Besides, Bank has opened a full fledged Branch in Kabul, Afghanistan.Keeping in tune with changing times and to provide its customers more efficient and speedy service, the Bank has taken major initiative in the field of computerization. All the Branches of the Bank have been computerized. The Bank has also launched aggressively the concept of "Any Time, Any Where Banking" through the introduction of Centralized Banking Solution (CBS) and over 2409 offices have already been brought under its ambit.PNB also offers Internet Banking services in the country for Corporate as well as individuals. Internet Banking services are available through all Branches of the Bank networked under CBS. Providing 24 hours, 365 days banking right from the PC of the user, Internet Banking offers world class banking facilities like anytime, anywhere access to account, complete details of transactions, and statement of account, online information of deposits, loans overdraft account etc. PNB has recently introduced Online Payment Facility for railway reservation through IRCTC Payment Gateway Project and Online Utility Bill Payment Services which allows Internet Banking account holders to pay their telephone, mobile, electricity, insurance and other bills anytime from anywhere from their desktop.Another step taken by PNB in meeting the changing aspirations of its clientele is the launch of its Debit card, which is also an ATM card. It enables the card holder to buy goods and services

Page 43: project

T.John College, BangaloreRole of I.T. in Banking Industry


at over 99270 merchant establishments across the country. Besides, the card can be used to withdraw cash at more than 25000 ATMs, where the 'Maestro' logo is displayed, apart from the PNB's over 1094 ATMs and tie up arrangements with other Banks.

FUTURE PLANS OF THE ORGANIZATIONTo provide excellent professional services and improve its position as a leader in the field of finance and related service, build and maintain a team of motivated and committed workforce with high work ethos; uses latest technology aimed at customer satisfaction and act as effective catalyst for socio-economic development.The bank is committed to its corporate mission to provide excellent professional services and improve its position as leader in the field of financial and related services, build, maintain a team of motivation and committed workforce with high work ethos, use latest technology, aimed at customers and act as an effective catalyst of socio-economic development. Punjab National Bank has focused quite a bit in rural areas, which is actually needed for our country. Their ATMs are given the facility of English, National Language Hindi and the local language of the state. They also provide mobile top-up facility.

FUNCTIONAL DEPARTMENTS OF THE ORGANIZATIONExecutive cards of the organization. They are Executive Director, General Manager (GM), Deputy General Managers (DGM), assistant General Managers (AGM), Chief Managers (CM), Managers and other officers are in the hierarchy at the head office level functioning in various Departments. The Zonal Manager and regional Managers head the Zonal Offices and Regional Officers respectively who are assisted by other down in the hierarchy. The Branch is headed by AGM\CM\ Senior Managers\Managers depending upon the size of the Branch activities and rendering of satisfactory customer service.The bank has a very good system of delegating power to the different functionaries in the hierarchy to facilitate speedy decision- making process even up to the branch Level.

Page 44: project

T.John College, BangaloreRole of I.T. in Banking Industry


MARKET PROFILE OF THE ORGANIZATIONToday, PNB operates 4,070 branches and 443 service counters across the country, consolidating its position as one of the top nationalized banks of India. PNB has been ranked at395Th position amongst the top 1000 global banks by the prestigious international publication The Banker. Like other scheduled banks in India, the PNB also comes under the guidance of the Reserve Bank of India (RBI) and as a government establishment, it has to follow directions of the government. Two directives, one from the Reserve Bank of India and the other from India’s Department of Official languages are key in this context. In 1985, the Department of Official Languages mandated that all electronic equipment used in ministries and departments of the government and their attached and subordinate offices would need to be bilingual. That is, they should be able to handle both Hindi and English. By the year 2000, the Reserve Bank of India had mandated that banks should have a clear IT plan that should be implemented: that at least 7O percent of all branches should be computerized.With technology emerging as a key driver of business growth, the bank has taken a number of IT initiatives to provide its large clientele spread all across the country with the best of technology while retaining the all- essential human warmth. Its core banking system (CBS) already acts as a single data bank, a backbone to 2,108 service outlets with internet banking services spread over 28 states in the country. This deployment has lent PNB the status of being the largest core banking system in Asia.The bank has 676 ATMs and also coordinates with the MITR group of six banks with 2,200 ATMs. PNB is a member of Institute Development and Research in Banking Technology (IDRBT)-sponsored National Financial Switch (NFS) for mutual ATM transactions. NFS at present has 18 banks and a pool of 6,197 ATMs. PNB has also pioneered the cheque truncation system in India. Other software fuelling the systems are instant fund transfer mechanism, data warehouse for decision control and MIS and risk management software based on Basel II guidelines set by the Bank for International Settlements. About 77 percent of its business is connected through leased lines, ISDN and VPN. Other services such as mobile banking utility bill

Page 45: project

T.John College, BangaloreRole of I.T. in Banking Industry


payments, funds transfer, e-commerce and CRM through mobile shall be introduced for the PNB branches including setting up a network operating centre (NOC) to monitor the CBS network.

RELATIVE PERFORMANCE Spreads: PNB has the best margins in the banking sector. Return Parameters: On both the return parameters i.e.

return on average asset and return on average net worth, PNB is close to the average of the peer set.

Asset Quality: PNB’s asset quality as measured by the net NPA ratio is on the higher side. It is just better than the largest scheduled commercial bank i.e. SBI.

Coverage Ratio: The provision coverage ratio third best after HDFC Bank and OBC in our set of banks.

Operating Efficiency: PNB’s cost to income ratio is higher than the average of the peer set. However, we believe that once the technological platforms are put in place, the bank will be able to bridge the gap with the numero uno in this regard.

TECHNOLOGY AND BANKINGThe Quintessence Nature of Banking harmonizes closely with Technology –

Page 46: project

T.John College, BangaloreRole of I.T. in Banking Industry


Balance sheet of the OrganisationMar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Sources of funds

Owner's fund

Equity share capital 315.30 315.30 315.30 315.30 315.30

Share application money - - - - -

Preference share capital - - - - -

Reserves & surplus 15,915.63 12,824.59 10,467.35 9,826.31 8,758.68

Loan funds

Secured loans - - - - -

Unsecured loans 2,49,329.80 2,09,760.50 1,66,457.23 1,39,859.67 1,19,684.92

Total 2,65,560.74 2,22,900.39 1,77,239.88 1,50,001.28 1,28,758.90

Uses of funds

Fixed assets

Gross block 4,215.21 3,930.36 3,699.64 2,247.74 2,106.92

Less : revaluation reserve 1,491.99 1,513.74 1,535.70 293.85 302.38

Less : accumulated depreciation 1,701.74 1,533.25 1,384.12 1,237.92 1,076.69

Net block 1,021.48 883.37 779.83 715.98 727.84

Capital work-in-progress - - - - -

Investments 77,724.47 63,385.18 53,991.71 45,189.84 41,055.31

Tasks Common to Both

Information Storage



Page 47: project

T.John College, BangaloreRole of I.T. in Banking Industry


Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Net current assets

Current assets, loans & advances 6,320.07 5,020.20 4,380.84 3,980.80 3,762.79

Less : current liabilities & provisions 10,317.69 18,130.13 14,798.23 10,178.51 9,518.93

Total net current assets -3,997.62 -13,109.93 -10,417.38 -6,197.71 -5,756.14

Miscellaneous expenses not written - - - - -

Total 74,748.33 51,158.62 44,354.15 39,708.10 36,027.01


Book value of unquoted investments - - - - -

Market value of quoted investments - - - - -

Contingent liabilities 1,01,340.25 1,11,212.07 1,04,055.87 74,700.48 58,739.31

Number of equity sharesoutstanding (Lacs) 3153.03 3153.03 3153.03 3153.03 3153.03

(Rs crore)

Quarterly results in briefJun ' 10 Mar ' 10 Dec ' 09 Sep ' 09 Jun ' 09

Sales 5,991.86 5,607.63 5,505.54 5,407.23 5,207.42

Operating profit 4,065.81 3,885.68 3,981.73 4,033.99 3,643.00

Interest 3,373.29 3,109.68 3,176.44 3,312.29 3,345.61

Gross profit 2,098.17 2,251.01 1,818.18 1,606.30 1,569.34

EPS (Rs) 33.88 36.00 32.07 29.40 26.39

Quarterly results in detailsJun ' 10 Mar ' 10 Dec ' 09 Sep ' 09 Jun ' 09

Other income 871.52 853.15 731.01 668.63 970.16

Stock adjustment - - - - -

Raw material - - - - -

Page 48: project

T.John College, BangaloreRole of I.T. in Banking Industry


Jun ' 10 Mar ' 10 Dec ' 09 Sep ' 09 Jun ' 09

Power and fuel - - - - -

Employee expenses 995.22 653.17 832.73 727.60 907.64

Excise - - - - -

Admin and selling expenses - - - - -

Research and development expenses - - - - -

Expenses capitalised - - - - -

Other expenses 396.70 446.92 409.20 429.67 354.99

Provisions made 534.13 621.86 281.88 215.97 301.79

Depreciation - - - - -

Taxation 495.75 575.57 524.99 463.37 435.50

Net profit / loss 1,068.29 1,135.03 1,011.31 926.96 832.05

Extra ordinary item - 81.45 - - -

Prior year adjustments - - - - -

Equity capital 315.30 315.30 315.30 315.30 315.30

Equity dividend rate - - - - -

Agg.of non-prom. shares (Lacs) 1330.61 1330.61 1330.61 1330.61 1330.61

Agg.of non promotoholding (%) 42.20 42.20 42.20 42.20 42.20

OPM (%) 67.86 69.29 72.32 74.60 69.96

GPM (%) 30.57 34.84 29.15 26.44 25.40

Page 49: project

T.John College, BangaloreRole of I.T. in Banking Industry


Jun ' 10 Mar ' 10 Dec ' 09 Sep ' 09 Jun ' 09

NPM (%) 15.57 17.57 16.22 15.26 13.47

CHAPTER-3Discussion on training

Student’s work Description of live experienceStudent’s contribution SWOT analysis of the organization

Page 50: project

T.John College, BangaloreRole of I.T. in Banking Industry


STUDENT’S WORK PROFILE (Role and Responsibility)I worked as a management trainee in Punjab National Bank, Ladania Branch (Bihar), I was responsible for multiple type of work involved in banking which our services best in the industry.

Customers ServiceThis is the counter where customer interacts with the bank personnel firstly. Here, I got a chance to know about the different problems of the customers visiting the bank. I helped them to solve their different problems which are asfollows:-

Query solutionsSolving their Different queries such as:-

Document required for new a/c Documents for loan Requirement for new ATM card Providing different forms for different purposes

Page 51: project

T.John College, BangaloreRole of I.T. in Banking Industry


Documents for Micro finance New account opening:

To help the customer in opening the new account by filling up their forms along with scrutinizing their documents. This includes checking of residence proof, address proof and witness required. Then generating account number and customer Id in the presence of banking employee.

Frills AccountThey are also known as PNB MITR account. These are the zero balance account specially created for these poor peoples. This account has the facility to avail theoverdraft limit of up to Rs.3,000.

Cheque clearingThis includes checking the cheque details like date of cheque, account number of the customer, signature of the customer.

Loan departmentIt includes clearing of various types of loans including personal loans, vehicle loan, home loan etc. In the branch I got a chance to visit the working site of the loan applicant with the bank personnel.


The first day in this industry made me feeling like in a heaven because this was my first step toward my dream and this was a new thing for me, this was practical exposure because till now I read only in books about banking ,first day when I reached bank premises at 9:30 am ,I saw crowd of over 100 people waiting outside the bank .I usually worked under the supervision and direction of the Business facilator, Mr. Mithilesh kr. karn. He gave me different responsibilities as per the need, and at the end of the day I had to report the full day’s work to him.


Page 52: project

T.John College, BangaloreRole of I.T. in Banking Industry


As a Management Trainee I worked in all of teams, as a team member my role was such as follows:-

MarketingTo collect data from the:

Local community Their existing customers NGOs and SHG(Self Help Groups). Cheque clearance

It includes: Inward cheque clearance Outward cheques Verifying Cheque details like date of cheque, a/c no. of the

customer, signature of the customer, cutting on cheque if any.

Loan clearance

It includes:- Document verification Site visit with bank employee for Micro loans Clearance of various types of loans including Micro loan,

personal loans, vehicle loan, etc.

Customer relationshipProvide information such as:

Providing information about different products such as FD (Fixed Deposit),RD (Recurring Deposit),mutual funds, Flexible Deposit.

Help in solving problems of customers. Procedure and conditions for getting loan


STRENGTH Wide network Large number of customers Fast adaptability to technology Brand image

Page 53: project

T.John College, BangaloreRole of I.T. in Banking Industry


WEAKNESS Casual behaviour Corruption and red tapism Slow decision making due to large hierarchy High gross NPA

OPPORTUNITIES Home to home banking services Diversification towards other fields Globalization

THREATS Stiff competition from SBI and other private players.



Page 54: project

T.John College, BangaloreRole of I.T. in Banking Industry



Sl. No

Nature of Account

No. of respondents

% of respondents

1. Saving A/Cs 78 78%2. Current A/Cs 9 9%3. Fixed Deposits 4 4%4. Loans 3 3%5. Others 6 6%Total 100 100%

Graph - 4.1Classification based on nature of A/Cs

Page 55: project

T.John College, BangaloreRole of I.T. in Banking Industry


Saving A/Cs

Current A/Cs

Fixed Deposits



0 10 20 30 40 50 60 70 80


Analysis: Above table shows that 78% respondents have Saving A/Cs, and 9% have Current A/Cs and rest of the respondents have 13% share of other A/Cs in total (which includes fixed deposits, loans, and other products)

Interpretation: This means most of the respondents are having Saving A/Cs which means the bank deposits are enriching as Saving A/Cs share is most.


Sl. No.

Response No. of respondents

% of respondents

1. Satisfied 89 89%2. Not

satisfied11 11%


100 100%

Graph - 4.2Classification based on satisfaction level of respondents

Page 56: project

T.John College, BangaloreRole of I.T. in Banking Industry



Not satisfied

0 10 20 30 40 50 60 70 80 90 100


Analysis: From the above table it could be inferred that 89% of the consumers aresatisfied with the service and quality of products of their bank. Only 11% of consumersare not satisfied.

Interpretation: Most of the respondents are satisfied with the service offered by PNB.Presently the bank offers varieties of services and the customers are getting a good rate of return from their deposits. Customers are getting good service from the bank.


Sl. No.

Ratings No. of respondents % of respondents

1. Excellent 5 5%2. Very good 9 9%3. Good 76 76%4. Average 6 6%5. Poor 4 4%Total 100 100%

Graph - 4.3Classification based on Rating of the service offered by PNB branch

Page 57: project

T.John College, BangaloreRole of I.T. in Banking Industry


Excellent Very good Good Average Poor0










Analysis: From this table it could be inferred that 76% of the consumers have rated service offered as ‘good’, 9% of them have rated them as ‘very good’, and 05% of them have rated as excellent and average’ while only 4% have rated as ‘poor’.Interpretation: Service offered by the bank is improving day by day. Returns consumers are getting are also attractive. Majority of the customers rates good, very good and excellent because of the customer service offered by the bank. Banks are providing a good service to the customers due to increased competition in the market. This may be the reason for more satisfaction


Sl. No. Attribute Score Rank1. Brand Name 56 12. Customer

service30 2

3. Interest 12 34. Others 2 4

Graph - 4.4Motive behind the Selecting of PNB

Page 58: project

T.John College, BangaloreRole of I.T. in Banking Industry


Brand NameCustomer serviceInterestOthers

Analysis: This table show the strengths and weaknesses of the brand, and what are the important criteria or factors on which decision-making is done. From this table we can infer that consumers give more importance for ‘Brand name’, secondly they prefer ‘satisfaction’, and then ‘returns on investment’.

Interpretation: This purely shows that people are now looking forward for better customer service in addition to the brand name in which they are investing and thereturns they are getting.


Sl. No.

Responses No. of respondents

% of respondents

1. Recommended 92 92%2. Not

recommended8 8%

Total 100 100%

Graph - 4.5Classification based on the willingness to recommend PNB branch services to other banks

Page 59: project

T.John College, BangaloreRole of I.T. in Banking Industry



Not recommended




Analysis: From this table it can be noted that the majority of consumers (92%) would like to recommend their bank services to others and only 8% of consumers would not like to recommend it to others.

Interpretation: Since the competition has increased in the field of benefits and service of banking. So customers are getting good service, so that they are willing to recommend their bank services to others.


Sl. No. Responses No. of respondents

% of respondents

1. Shift 9 9%2. Doesn’t shift 91 91%Total 100 100%

Graph - 6.6Classification based on the willingness of respondents to shift their A/Cs to other banks

Page 60: project

T.John College, BangaloreRole of I.T. in Banking Industry


ShiftDoesn’t shift

Analysis: From this table it can be noted that the majority of consumers (92%) doesn’t like to shift their A/Cs to other banks.

Interpretation: The reason can be increasing customer satisfaction and quality services offered by the bank.



Page 61: project

T.John College, BangaloreRole of I.T. in Banking Industry


OBSERVATIONS It has been observed that to put a new organization into a running position is much more difficult than to handle a already working organization, manager’s task is difficult in a banking industry he is the person who is completely liable for the working of branch. To put a right person at a right job is not an easy task for the manager.

I observed some of the factors in my branch such as: Lack of staff lack of Efficient staff Brach working space lack of speed Lack of quality service Complicated work procedure Not providing service on time

Page 62: project

T.John College, BangaloreRole of I.T. in Banking Industry


Beside all these factors the branch has also achieved some achievements such as 1200 accounts in 2 days and distribute micro loan of around 3 crores rupees to different 55 Self Help Groups to start their small businesses.Opening of Micro branch in India is also a achievement and it is a starting of new type of banking revolution which can change the life of villagers which depends on the “MAHAJAN” to lend them money at high interest rate.

Issues with CustomersNot only employees, there are problems for customers too when a new technology arrives…

• The major challenges –– Comfort levels– Security and trust issues– Convenience factor– Getting rid of myths– Migration from existing to new systems– Changing the habits

SUGGESTIONS With regard to banking products and services, consumers respond at different rates, depending on the consumer’s characteristics. Hence I PNB should try to bring their new product and services to the attention of potential early adopters.

Due to the intense competition in the financial market, PNB should adopt better strategies to attract more customers.

Return on investment company reputation and premium outflow are most preferred attributes that are expected by the respondents. Hence greater focus should be given to these attributes.

PNB should adopt effective promotional strategies to increase the awareness level among the consumers.

PNB should ask for their consumer feedback to know whether the consumers are really satisfied or dissatisfied with the service and product of the bank. If they are

Page 63: project

T.John College, BangaloreRole of I.T. in Banking Industry


dissatisfied, then the reasons for dissatisfaction should be found out and should be corrected in future.

The PNB brand name has earned a lot of goodwill and enjoys high brand equity. As there is intense competition, PNB should work hard to maintain its position and offer better service and products to consumers.

The bank should try to increase the Brand image through performance and service then, only the customers will be satisfied.

Majority of the people find banking important in their life, so PNB should employ the strategies to convert the want in to need which will enrich their business.

RECOMMENDATIONSWith the changing banking system, this branch has also to adapt the new ways of banking such as:

Shifting new and young staff to this branch Give them good incentives so that they stay there for

longer time period as per the location Complicated form should be replace with easy forms Provide easy norms for new account opening. Well trained staff be placed to increase work pace and to

decrease per transaction time also. Local people should be appointed to handle the


Page 64: project

T.John College, BangaloreRole of I.T. in Banking Industry




Page 65: project

T.John College, BangaloreRole of I.T. in Banking Industry


SUMMARY OF LEARNING EXPERIENCEWhile working in Punjab National Bank’s Branch of Ladania (Madhubani) Bihar, I got in-depth knowledge about role of I.T in Banking industry. I recognize that there is a lot more to discover and learn, I learned to be more responsible, have more patience and most important it helped me to learn how to handle the work pressure.I got to know what all different types of question can be asked by a banking customer, as the branch was in the village area with population of about 2 lakhs peoples where there was only one other bank’s branch, it was difficult to handle minimum 500- 700 person’s per day with the queries like :

What’s the procedure to open an account? What’s the procedure to get an ATM card? What’s the procedure to get a pass book? What’s the procedure to get a cheque book? How to fill ATM form? How to fill all other different forms like cheque clearance

form, cash deposit form, cash withdrawal form, etc.?

Besides the query solution I also filled up the form for the illiterate and old peoples and helping them for their requirements.

Page 66: project

T.John College, BangaloreRole of I.T. in Banking Industry


Apart from customer service I got to know about the micro finance and the procedure and all document required for it and types of people who can get the micro loan.




Page 67: project

T.John College, BangaloreRole of I.T. in Banking Industry




Magazine:-India todayBusiness worldBusiness today

Page 68: project

T.John College, BangaloreRole of I.T. in Banking Industry





Contact No.:

1. Which type of account you prefer in the bank?

(a) Saving A/C(b) Current A/C(c) Fixed deposits(d) Loans(e) Other’s

2. Are you satisfied by the services offered by PNB branch?

(a) Satisfied(b) Not satisfied

3. How you rate the services offered by PNB?

a) Excellentb) Very goodc) Goodd) Average e) Poor

Page 69: project

T.John College, BangaloreRole of I.T. in Banking Industry


4. What was your motive behind selecting PNB?

(a)Brand name(b)Customer service(c)Interest(d)Others

5. Do you recommend life insurance from other company?

(a)Recommended(b)Not recommended

6. Are you willing to shift your account to other Bank?

(a)Shift(b)Doesn’t shift

Page 70: project

T.John College, BangaloreRole of I.T. in Banking Industry