“A Study On Various Services Offered By

Druk Punjab National Bank Limited”

A PROJECT REPORT

Druk Punjab National

Bank Ltd.
FOR PARTIAL FULFILMENT OF
REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION
(2007-2010)

SUBMITTED AT

KALIMPONG GOVERNMENT COLLEGE

(CENTRE FOR MANAGEMENT STUDIES)
(NORTH BENGAL UNIVERSITY)
DARJEELING (WB)

SUBMITTED BY
SURAJ GHIMIRAY
Roll No. 23/BBA/070151
BBA VIth Semester

CONTENTS

S.No Topics
Page No.
 Preface
Acknowledgement
PART I
• Chapter 1 Introduction 5
• Chapter 2 Organization’s Profile 22
• Chapter 3 Need and Importance of the Study
58
• Chapter 4 Objectives of the Company 60
PART II
• Chapter 5 Research Methodology and
Sampling 62
• Chapter 6 Data Analysis and Interpretation 67
• Chapter 7 Findings and Conclusions 74
• Suggestions77
• Bibliography78

PREFACE
 This Project has been prepared as per the requirement of my Bachelor of
Business Administration. This will also give the proper knowledge of Various
Services Offered By Druk Punjab National Bank Limited in Bhutan as well as in
other countries.
I have worked my best to keep the presentation of this Project report simple and
understandable. My aim is to make clear all related points of the study.
While presenting the project report I am very optimistic about its relevance to
the organization.
ACKNOWLEDGEMENT
It gives me immense pleasure while thanking the Management of Druk Punjab
National Bank Limited for allowing me to do my Project training in this
organization.
I am very much grateful to Mr. N.K. Arora, CEO, who gave me this opportunity
to work under his guidance and provided valuable suggestions.
I would also like to thank Mr. Samdrup (Managing Director), who provided all
the information and untiring guidance throughout the Project.
I wish to take the opportunity to extend my sincere gratitude to all those who
have given me their precious time and humble guidance in the completion of my
Project report. During the preparation I have also received full co-operation of
the Sales Department.
Last but not the least I am very much thankful to all those who helped me
throughout my Project.

SURAJ GHIMIRAY
KALIMPONG GOVERNMENT COLLEGE
(CENTRE FOR MANAGEMENT STUDIES),
KALIMPONG,
DARJEELING(WB)
 Chapter-1

Introduction
 General Introduction
Bank may be defined as a financial institution which is engaged in the business of
keeping money for savings and checking accounts or for exchange or for issuing loans
and credit etc. A set of services intended for private customers and characterized by a
higher quality than the services offered to retail customers.
Based on the notion of tailor-made services, it aims to offer advice on investment,
inheritance plans and provide active support for general transactions and the
resolution of asset-related problems.
The essential function of a bank is to provide services related to the storing of
deposits and the extending of credit.Basic function may include Credit collection,
Issuer of banking notes, Depositor of money and lending loans.

Now a days banking is not in its traditional way , with the advancement of
technology its focusing on more comfort of customer providing services such as:

 online banking
 investment banking
 electronic banking
 internet banking
 pc banking /mobile banking
 e-banking

The importance of banking sector is immense in the progress and prosperity of any
State or country.

A Brief History

Banking in India originated in the last decades of the 18th century. The oldest bank
in existence in India is the State Bank of India, a government-owned bank that traces
its origins back to June 1806 and that is the largest commercial bank in the country.
Central banking is the responsibility of the Reserve Bank of India, which in 1935
formally took over these responsibilities from the then Imperial Bank of India,
relegating it to commercial banking functions. After India's independence in 1947, the
Reserve Bank was nationalized and given broader powers. In 1969 the government
nationalized the 14 largest commercial banks; the government nationalized the six
next largest in 1980.

Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks
(that is with the Government of India holding a stake), 31 private banks (these do not
have government stake; they may be publicly listed and traded on stock exchanges)
and 38 foreign banks. They have a combined network of over 53,000 branches and
17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public
sector banks hold over 75 percent of total assets of the banking industry, with the
private and foreign banks holding 18.2% and 6.5% respectively

Origin of the Industry

Banking in India originated in the last decades of the 18th century. The first banks
were The General Bank of India, which started in 1786, and the Bank of Hindustan,
both of which are now defunct. The oldest bank in existence in India is the State Bank
of India, which originated in the Bank of Calcutta in June 1806, which almost
immediately became the Bank of Bengal. This was one of the three presidency banks,
the other two being the Bank of Bombay and the Bank of Madras, all three of which
were established under charters from the British East India Company. For many years
the Presidency banks acted as quasi-central banks, as did their successors. The three
banks merged in 1925 to form the Imperial Bank of India, which, upon India's
independence, became the State Bank of India.

Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848
as a consequence of the economic crisis of 1848-49. The Allahabad Bank, established
in 1865 and still functioning today, is the oldest Joint Stock bank in India. It was not
the first though. That honor belongs to the Bank of Upper India, which was
established in 1863, and which survived until 1913, when it failed, with some of its
assets and liabilities being transferred to the Alliance Bank of Simla.
When the American Civil War stopped the supply of cotton to Lancashire from the
Confederate States, promoters opened banks to finance trading in Indian cotton. With
large exposure to speculative ventures, most of the banks opened in India during that
period failed. The depositors lost money and lost interest in keeping deposits with
banks. Subsequently, banking in India remained the exclusive domain of Europeans
for next several decades until the beginning of the 20th century.

Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The
Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860, and another in
Bombay in 1862; branches in Madras and Pondichery, then a French colony,
followed. HSBC established itself in Bengal in 1869. Calcutta was the most active
trading port in India, mainly due to the trade of the British Empire, and so became a
banking center.

The first entirely Indian joint stock bank was the Oudh Commercial Bank, established
in 1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank,
established in Lahore in 1895, which has survived to the present and is now one of the
largest banks in India.

Around the turn of the 20th Century, the Indian economy was passing through a
relative period of stability. Around five decades had elapsed since the Indian Mutiny,
and the social, industrial and other infrastructure had improved. Indians had
established small banks, most of which served particular ethnic and religious
communities.

The presidency banks dominated banking in India but there were also some exchange
banks and a number of Indian joint stock banks. All these banks operated in different
segments of the economy. The exchange banks, mostly owned by Europeans,
concentrated on financing foreign trade. Indian joint stock banks were generally under
capitalized and lacked the experience and maturity to compete with the presidency
and exchange banks. This segmentation let Lord Curzon to observe, "In respect of
banking it seems we are behind the times. We are like some old fashioned sailing
ship, divided by solid wooden bulkheads into separate and cumbersome
compartments."
The period between 1906 and 1911, saw the establishment of banks inspired by the
Swadeshi movement. The Swadeshi movement inspired local businessmen and
political figures to found banks of and for the Indian community. A number of banks
established then have survived to the present such as Bank of India, Corporation
Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India.
The fervor of Swadeshi movement lead to establishing of many private banks in
Dakshina Kannada and Udupi district which were unified earlier and known by the
name South Canara ( South Kanara ) district. Four nationalised banks started in this
district and also a leading private sector bank. Hence undivided Dakshina Kannada
district is known as "Cradle of Indian Banking".

From World War I to Independence

The period during the First World War (1914-1918) through the end of the Second
World War (1939-1945), and two years thereafter until the independence of India
were challenging for Indian banking. The years of the First World War were
turbulent, and it took its toll with banks simply collapsing despite the Indian economy
gaining indirect boost due to war-related economic activities. At least 94 banks in
India failed between 1913 and 1918 as indicated in the following table:

Year Number of banks Authorised Capital Paid-up Capital

that failed (Rs. Lakhs) (Rs. Lakhs)

1913 12 274 35

1914 42 710 109

1915 11 56 5

1916 13 231 4

1917 9 76 25

1918 7 209 1
Post-independence

The partition of India in 1947 adversely impacted the economies of Punjab and West
Bengal, paralyzing banking activities for months. India's independence marked the
end of a regime of the Laissez-faire for the Indian banking. The Government of India
initiated measures to play an active role in the economic life of the nation, and the
Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed
economy. This resulted into greater involvement of the state in different segments of
the economy including banking and finance. The major steps to regulate banking
included:

• In 1948, the Reserve Bank of India, India's central banking authority, was
nationalized, and it became an institution owned by the Government of India.
• In 1949, the Banking Regulation Act was enacted which empowered the
Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in
India."
• The Banking Regulation Act also provided that no new bank or branch of an
existing bank could be opened without a license from the RBI, and no two
banks could have common directors.

However, despite these provisions, control and regulations, banks in India except the
State Bank of India, continued to be owned and operated by private persons. This
changed with the nationalisation of major banks in India on 19 July, 1969.

Nationalization of Banks

By the 1960s, the Indian banking industry has become an important tool to facilitate
the development of the Indian economy. At the same time, it has emerged as a large
employer, and a debate has ensued about the possibility to nationalise the banking
industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of
the GOI in the annual conference of the All India Congress Meeting in a paper
entitled "Stray thoughts on Bank Nationalisation." The paper was received with
positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued
an ordinance and nationalised the 14 largest commercial banks with effect from the
midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described
the step as a "masterstroke of political sagacity." Within two weeks of the issue of the
ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer
of Undertaking) Bill, and it received the presidential approval on 9 August, 1969.

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. Later on, in the year 1993, the government merged
New Bank of India with Punjab National Bank. It was the only merger between
nationalized banks and resulted in the reduction of the number of nationalised banks
from 20 to 19. 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.

The nationalized banks were credited by some, including Home minister P.

Chidambaram, to have helped the Indian economy withstand the global financial
crisis of 2007- 009

Growth and Present Status of Banks

In the early 1990s, the then Narsimha Rao government embarked on a policy of
liberalization, licensing a small number of private banks. These came to be known as
New Generation tech-savvy banks, and included Global Trust Bank (the first of such
new generation banks to be set up), which later amalgamated with Oriental Bank of
Commerce, Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This
move, along with the rapid growth in the economy of India, revitalized the banking
sector in India, which has seen rapid growth with strong contribution from all the
three sectors of banks, namely, government banks, private banks and foreign banks.

The next stage for the Indian banking has been setup with the proposed relaxation in
the norms for Foreign Direct Investment, where all Foreign Investors in banks may be
given voting rights which could exceed the present cap of 10%,at present it has gone
up to 49% with some restrictions.
The new policy shook the Banking sector in India completely. Bankers, till this time,
were used to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4) of
functioning. The new wave ushered in a modern outlook and tech-savvy methods of
working for traditional banks.All this led to the retail boom in India. People not just
demanded more from their banks but also received more.

Currently (2007), banking in India is generally 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. In terms of quality of assets and capital
adequacy, Indian banks are considered to have clean, strong and transparent balance
sheets relative to other banks in comparable economies in its region. The Reserve
Bank of India is an autonomous body, with minimal pressure from the government.
The stated policy of the Bank on the Indian Rupee is to manage volatility but without
any fixed exchange rate-and this has mostly been true.

With the growth in the Indian economy expected to be strong for quite some time-
especially in its services sector-the demand for banking services, especially retail
banking, mortgages and investment services are expected to be strong. One may also
expect M&As, takeovers, and asset sales.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its
stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an
investor has been allowed to hold more than 5% in a private sector bank since the RBI
announced norms in 2005 that any stake exceeding 5% in the private sector banks
would need to be vetted by them.

In recent years critics have charged that the non-government owned banks are too
aggressive in their loan recovery efforts in connection with housing, vehicle and
personal loans. There are press reports that the banks' loan recovery efforts have
driven defaulting borrowers to suicide.

Banks with branches in India as on date

• ABN AMRO Bank N.V.

• Abu Dhabi Commercial Bank Ltd
 • American Express Bank
• Antwerp Diamond Bank
• Arab Bangladesh Bank
• Bank International Indonesia
• Bank of America
• Bank of Bahrain & Kuwait
• Bank of Ceylon
• Bank of Nova Scotia
• Bank of Tokyo Mitsubishi UFJ
• Barclays Bank
• BNP Paribas
• Calyon Bank
• ChinaTrust Commercial Bank
• Citibank
• DBS Bank
• Deutsche Bank
• HSBC (Hongkong & Shanghai Banking Corporation)
• JPMorgan Chase Bank
• Krung Thai Bank
• Mashreq Bank
• Mizuho Corporate Bank
• Oman International Bank
• Shinhan Bank
• Société Générale
• Sonali Bank
• Standard Chartered Bank
• State Bank of Mauritius

Banks with Representative Offices in India:

American Banks

• The Bank of New York

• Wachovia Bank
Australian Banks

• Commonwealth Bank
• National Bank Australia
• Westpac Banking Corporation

Austrian Banks

• Raiffeisen Zentral Bank Osterreich

Belgian Banks

• Fortis Bank.
• K.B.C. Bank N.V.

Canadian Banks

• Royal bank of Canada

UAE Banks

• Emirates Bank International

French Banks

• Credit Industriel et Commercial

• Natixis

German Banks

• Bayerische Hypo und Vereinsbank

• Commerzbank
• Dresdner Bank
• DZ Bank AG Deutsche Zentral – Genossenschafts Bank
• HSH Nordbank
• Landesbank Baden – Wurttemberg
Irish Banks

• DEPFA Bank

Italian Banks

• Banc Intesa Banca Commerciale Italiana

• Banca di Roma
• Banca Populare Di Verona E Novara
• Banca Popolare di Vicenza
• BPU Banca –Banche Popolari Unite
• Monte Dei Paschi Di Sienna
• Sanpaolo IMI Bank
• Uni Credito Italiano

Nepalese Banks

• Everest Bank

Portuguese Banks

• Caixa Geral de Depositos

Russian Banks

• Vnesheconombank
• VTB India
• Promsvyazbank

South African Banks

• First Rand Bank

South Korean Banks

• Wori Bank

Spanish Banks
 • Banco de Sabadell
• Banco Bilbao Vizcaya Argentaria

SriLankan Banks

• Hatton National Bank

Swiss Banks

• UBS
• Zurcher Kantonalbank
• Saqib Saeed Qureshi

Future of Banking Sector and Initiated Reforms

Financial sector reforms were initiated as part of overall economic reforms in the
country and wide ranging reforms covering industry, trade, taxation, external
sector, banking and financial markets have been carried out since mid 1991. A
decade of economic and financial sector reforms has strengthened the
fundamentals of the Indian economy and transformed the operating environment
for banks and financial institutions in the country. The sustained and gradual pace
of reforms has helped avoid any crisis and has actually fuelled growth. As pointed
out in the RBI Annual Report 2001-02, GDP growth in the 10 years after reforms
i.e. 1992-93 to 2001-02 averaged 6.0% against 5.8% recorded during 1980-81 to
1989-90 in the pre-reform period. The most significant achievement of the
financial sector reforms has been the marked improvement in the financial health
of commercial banks in terms of capital adequacy, profitability and asset quality
as also greater attention to risk management. Further, deregulation has opened up
new opportunities for banks to increase revenues by diversifying into investment
banking, insurance, credit cards, depository services, mortgage financing,
securitisation, etc. At the same time, liberalisation has brought greater competition
among banks,both domestic and foreign, as well as competition from mutual
funds, NBFCs, post office, etc. Post-WTO, competition will only get intensified,
as large global players emerge on the scene. Increasing competition is squeezing
profitability and forcing banks to work efficiently on shrinking spreads. A positive
fallout of competition is the greater choice available to consumers,and the
increased level of sophistication and technology in banks. As banks benchmark
themselves against global standards, there has been a marked increase in
disclosures and transparency in bank balance sheets as also greater focus on
corporate governance.

Major Reforms In Banking Sector

Some of the major reform initiatives in the last decade that have changed the face
of the Indian banking and financial sector are:

• Interest rate deregulation. Interest rates on deposits and lending have been
deregulated with banks enjoying greater freedom to determine their rates.

• Adoption of prudential norms in terms of capital adequacy, asset classification,

income recognition, provisioning, exposure limits, investment fluctuation reserve,
etc.

• Reduction in pre-exemptions – lowering of reserve requirements (SLR and

CRR), thus releasing more lendable resources which banks can deploy profitably.
Government equity in banks has been reduced and strong banks have been
allowed to access the capital market for raising additional capital.• Banks now
enjoy greater operational freedom in terms of opening and swapping of branches,
and banks with a good track record of profitability have greater flexibility in
recruitment.

• New private sector banks have been set up and foreign banks permitted to
expand their operations in India including through subsidiaries. Banks have also
been allowed to set up Offshore Banking Units in Special Economic Zones.

• New areas have been opened up for bank financing: insurance, credit cards,
infrastructure financing, leasing, gold
banking, besides of course investment banking, asset management, factoring, etc.
• New instruments have been introduced for greater flexibility and better risk
management: e.g. interest rate swaps, forward rate agreements, cross currency
forward contracts, forward cover to hedge inflows under foreign direct
investment, liquidity adjustment facility for meeting day-to-day liquidity
mismatch.

• Several new institutions have been set up including the National Securities
Depositories Ltd., Central Depositories Services Ltd., Clearing Corporation of
India Ltd., Credit Information Bureau India Ltd. • Limits for investment in
overseas markets by banks, mutualfunds and corporates have been liberalised. The
overseas investment limit for corporates has been raised to 100% of net worth and
the ceiling of $100 million on prepayment of external commercial borrowings has
been removed. MFs and corporates can now undertake FRAs with banks. Indians
allowed to maintain resident foreign currency (domestic) accounts. Full
convertibility for deposit schemes of NRIs introduced.

• Universal Banking has been introduced. With bankspermitted to diversify into

long-term finance and DFIs into working capital, guidelines have been put in
place for the evolution of universal banks in an orderly fashion.

• Technology infrastructure for the payments and settlement system in the country
has been strengthened with electronic funds transfer, Centralised Funds
Management System,Structured Financial Messaging Solution, Negotiated
Dealing System and move towards Real Time Gross Settlement.
• Adoption of global standards. Prudential norms for capital adequacy, asset
classification, income recognition and provisioning are now close to global
standards. RBI has introduced Risk Based Supervision of banks (against the
traditional transaction based approach). Best international practices in accounting
systems, corporate governance,payment and settlement systems, etc. are being
adopted.

• Credit delivery mechanism has been reinforced to increase the flow of credit to
priority sectors through focus on micro credit and Self Help Groups. The
definition of priority sector has been widened to include food processing and cold
storage, software upto Rs 1 crore, housing above Rs 10 lakh,selected lending
through NBFCs, etc.

• RBI guidelines have been issued for putting in place risk management systems in
banks. Risk Management
Committees in banks address credit risk, market risk and operational risk. Banks
have specialised committees to measure and monitor various risks and have been
upgrading their risk management skills and systems.

• The limit for foreign direct investment in private banks has been increased from
49% to 74% and the 10% cap on
voting rights has been removed. In addition, the limit for foreign institutional
investment in private banks is 49%.

• Wide ranging reforms have been carried out in the area of capital markets. Fresh
investment in CPs, CDs are allowed only in dematerialised form. SEBI has
reduced the settlement cycle from T+3 to T+2 from April 1, 2003 i.e. settlement
of stock deals will be completed in two trading days after the trade is executed,
taking the Indian stock trading system ahead of some of the developed equity
markets. Stock exchanges will set up trade guarantee funds. Retail trading in
Government securities has been introduced on NSE and BSE from January 16,
2003. A Serious Frauds Office is proposed to be set up. Fungibility of ADRs and
GDRs allowed.

Improvement in Performance of Commercial Banks

There is no doubt that banking sector reforms have increased the profitability,
productivity and efficiency of banks. There has been an improvement in overall
capital adequacy of banks and as on March 31, 2002 92 out of 97 commercial
banks operating in India had capital adequacy above the statutory minimum level
of 9%. Introduction of prudential norms relating to asset classification, income
recognition and provisioning, along with legal and institutional reforms, has led to
visible improvement in asset quality in banks. Net NPAs (i.e.that portion of NPAs
which is not provided for) have declined gradually from 10.7% in 1994-95 to
5.8% in 2001-02.Increase in the number of players has increased competition,
which is reflected in the decline in the bank concentration ratio. The share of top 5
banks in total assets declined from 51.7% in 1991-92 to 43.5% in 2001-02 while
its share in
profits fell from 54.5% to 41.4% in the same period.

Despite intensification of competition and introduction of prudential norms, all

major bank groups in India have remained profitable. The Return on Assets has
hovered in the range of 0.5-0.8% since the mid-1990s – while this is on the lower
side compared to many developing countries, it is higher than the profitability at
around 0.5% in industrialised countries. The improvement in efficiency is also
seen from the intermediation cost for scheduled commercial banks, which
declined from 2.85% in 1996-97 to 2.19% in 2001-02·. According to data
analysed by RBI, there has been a noticeable decline in the difference between
real interest rates in India and international benchmark rates (LIBOR 1 year) since
the mid-1990s, suggesting increased integration of the Indian banking sector with
the rest of the world.

Challenges Ahead

(i) Improving Profitability:

The most direct result of the above changes is increasing competition and
narrowing of spreads and its impact on the profitability of banks. The challenge
for banks is how to manage with thinning margins while at the same time working
to improve productivity which remains low in relation to global standards. This is
particularly important because with dilution in banks’equity, analysts and
shareholders now closely track their performance. Thus, with falling spreads,
rising provision for NPAs and falling interest rates, greater attention will need to
be paid to reducing transaction costs. This will require tremendous efforts in the
area of technology and for banks to build capabilities to handle much bigger
volumes.
(ii) Reinforcing Technology:
Technology has thus become a strategic and integral part of banking, driving
banks to acquire and implement world class systems that enable them to provide
products and services in large volumes at a competitive cost with better risk
management practices.
The pressure to undertake extensive computerisation is very real as banks that
adopt the latest in technology have an
edge over others. Customers have become very demanding and banks have to
deliver customised products through
multiple channels, allowing customers access to the bank round the clock.

(iii) Risk Management:

The deregulated environment brings in its wake risks along with profitable
opportunities, and technology plays a crucial role in managing these risks. In
addition to being exposed to credit risk, market risk and operational risk, the
business of banks would be susceptible to country risk, which will be heightened
as controls on the movement of capital are eased. In this context, banks are
upgrading their credit assessment and risk management skills and retraining staff,
developing a cadre of specialists and introducing technology driven management
information systems.

(iv) Sharpening Skills:

The far-reaching changes in the banking and financial sector entail a fundamental
shift in the set of skills required in banking. To meet increased competition and
manage risks, the demand for specialised banking functions, using IT as a
competitive tool is set to go up.Special skills in retail banking, treasury, risk
management, foreign exchange, development banking, etc., will need to be
carefully nurtured and built. Thus, the twin pillars of the banking sector i.e. human
resources and IT will have to be strengthened.

(v) Greater Customer Orientation:

In today’s competitive environment, banks will have to strive to attract and retain
customers by introducing innovative products, enhancing the quality of customer
service and marketing a variety of products through diverse channels targeted at
specific customer groups.

(vi) Corporate Governance:

Besides using their strengths and strategic initiatives for creating shareholder
value, banks have to be conscious of their responsibilities towards corporate
governance. Following financial liberalisation, as the ownership of banks gets
broadbased, the importance of institutional and individual shareholders will
increase.
In such a scenario, banks will need to put in place a code for corporate governance
for benefiting all stakeholders of a corporate entity.

(vii) International Standards:

Introducing internationally followed best practices and observing universally
acceptable standards and codes is necessary for strengthening the domestic
financial architecture. This includes best practices in the area of corporate
governance along with full transparency in disclosures. In today’s globalised
world, focusing on the observance of standards will help smooth integration with
world financial markets.
 Chapter 2

Organization’s

Profile
 Organization’s Profile

Name of organization : Druk Punjab National Bank Limited

Head Office : Norzin Lam, Near Main Traffic, Thimphu, BHUTAN

Origin of the Organization

Established in 1895 at Lahore, undivided India, Punjab National Bank (PNB) has the
distinction of being the first Indian bank to have been started solely with Indian
capital.The bank was nationalised in July 1969 along with 13 other banks. From its
modest beginning, the bank has grown in size and stature to become a front-line
banking institution in India at present.
 A professionally managed bank with a successful track record of
over 110 years.

 Largest branch network in India - 4525 Offices including 432

Extension Counters spread throughout the country.

 Strategic business area covers the large Indo-Gangetic belt and

the metropolitan centres.
 Ranked as 248th biggest bank in the world by Bankers Almanac ,
London.
 Strong correspondent banking relationships with more than 217
international banks of the world.
 More than 50 renowned international banks maintain their Rupee
Accounts with PNB.
 Well equipped dealing rooms; 20 different foreign currency
accounts are maintained at major centres all over the globe.
 Rupee drawing arrangements with M/s UAE Exchange Centre,
UAE, M/s Al Fardan Exchange Co. Doha, Qatar,M/s Bahrain
Exchange Co, Kuwait, M/s Bahrain Finance Co, Bahrain,M/s
Thomas Cook Al Rostamani Exchange Co. Dubai,UAE, and M/s
Musandam Exchange, Ruwi, Sultanate of Oman.

Growth and Development

With over 38 million satisfied customers and 4668 offices, PNB has continued to
retain its leadership position among the nationalized banks. The bank enjoys strong
fundamentals, large franchise value and good brand image. Besides being ranked as
one of India's top service brands, PNB has remained fully committed to its guiding
principles of sound and prudent banking. Apart from offering banking products, the
bank has also entered the credit card & debit card business; bullion business; life and
non-life insurance business; Gold coins & asset management business, etc.

Since its humble beginning in 1895 with the distinction of being the first Indian bank
to have been started with Indian capital, PNB has achieved significant growth in
business which at the end of March 2009 amounted to Rs 3,64,463 crore. Today, with
assets of more than Rs 2,46,900 crore, PNB is ranked as the 3rd largest bank in the
country (after SBI and ICICI Bank) and has the 2nd largest network of branches
(4668 including 238 extension counters and 3 overseas offices).During the FY 2008-
09, with 39% share of low cost deposits, the bank achieved a net profit of Rs 3,091
crore, maintaining its number ONE position amongst nationalized banks. Bank has a
strong capital base with capital adequacy ratio as per Basel II at 14.03% with Tier I
and Tier II capital ratio at 8.98% and 5.05% respectively as on March’09. As on
March’09, the Bank has the Gross and Net NPA ratio of only 1.77% and 0.17%
respectively. During the FY 2008-09, its’ ratio of priority sector credit to adjusted net
bank credit at 41.53% & agriculture credit to adjusted net bank credit at 19.72% was
also higher than the respective national goals of 40% & 18%.

Present Status of the Organization

PNB has always looked at technology as a key facilitator to provide better customer
service and ensured that its ‘IT strategy’ follows the ‘Business strategy’ so as to arrive
at “Best Fit”. The bank has made rapid strides in this direction. Alongwith the
achievement of 100% branch computerization, one of the major achievements of the
Bank is covering all the branches of the Bank under Core Banking Solution (CBS),
thus covering 100% of it’s business and providing ‘Anytime Anywhere’ banking
facility to all customers including customers of more than 2000 rural branches. The
bank has also been offering Internet banking services to the customers of CBS
branches like booking of tickets, payment of bills of utilities, purchase of airline
tickets etc.Towards developing a cost effective alternative channels of delivery, the
bank with more than 2150 ATMs has the largest ATM network amongst Nationalised
Banks.
With the help of advanced technology, the Bank has been a frontrunner in the industry
so far as the initiatives for Financial Inclusion is concerned. With it’s policy of
inclusive growth in the Indo-Gangetic belt, the Bank’s mission is “Banking for
Unbanked”. The Bank has launched a drive for biometric smart card based technology
enabled Financial Inclusion with the help of Business Correspondents/Business
Facilitators (BC/BF) so as to reach out to the last mile customer. The BC/BF will
address the outreach issue while technology will provide cost effective and
transparent services. The Bank has started several innovative initiatives for marginal
groups like rickshaw pullers, vegetable vendors, diary farmers, construction workers,
etc.
The Bank has already achieved 100% financial inclusion in 21,408 villages.

Backed by strong domestic performance, the bank is planning to realize its global
aspirations. In order to increase its international presence, the Bank continues its
selective foray in international markets with presence in Hongkong, Dubai,
Kazakhstan, UK, Shanghai, Singapore, Kabul and Norway. A second branch in
Hongkong at Kowloon was opened in the first week of April’09. Bank is also in the
process of establishing its presence in China, Bhutan, DIFC Dubai, Canada and
Singapore. The bank also has a joint venture with Everest Bank Ltd. (EBL), Nepal.

Future Expansion of the Organization

Under the long term vision, Bank proposes to start its operation in Fiji Island,
Australia and Indonesia. Bank continues with its goal to become a household brand
with global expertise. Amongst Top 1000 Banks in the World, ‘The Banker’ listed
PNB at 250th place. Further, PNB is at the 1166th position among 48 Indian firms
making it to a list of the world’s biggest companies compiled by the US magazine
‘Forbes’.
Parameters Mar'07 Mar'08 Mar'09 CRAR
Operating Profit* 3617 4006 5744 26.02
Net Profit* 1540 2049 3091 41.67
Deposit 139860 166457 209760 22.47
Advance 96597 119502 154703 26.55
Total Business 236456 285959 364463 24.15

(Rs. In Crores)

* Respective figure for the corresponding financial year

Departments of The Organization

The bank has following organization

Finance

Personal Administration

Human Source

Sales & Marketing

Retailing

Treasury Management

Information Technology
 Product Profile of the Organization

Saving Account
• PNB Prudent Sweep
• Total Freedom Salary Account
• PNB Vidyarthi Salary Account
• PNB Mitra SF Account
Current Accounts
• Smart Romer
• PNB Vaibhav
• PNB Gaurav
Fixed Deposit Accounts
• Spectrum fixed deposit scheme
• Anupam account
• Multi benefit deposit scheme
• Special fixed deposit scheme
• Recurring deposit scheme
• PNB swecha jama yojna/flexi rd

Credit schemes
• Housing loan
• Car finanace
• Personal loan
• Professional loan
• Educational loan scheme
• Loan against mortgage of property
• PNB financial basket scheme
• Personal loan scheme for pensioners
• Privilege card scheme
• Other credit scheme

Social Banking
 • Farmers
• Krishi card
• Agriculture credit scheme
• PNB farmers welfare trust

Women
• Scheme for house wife and other women
• Mahila udhyam nidhi scheme

Savings Accounts

TOTAL FREE DOOM – SAVING FUNDS SALARY ACCOUNT

Purpose: To offer an attractive Saving Fund Account to Corporate Employees for

enabling them to have their Salary Credited as well as availing overdraft facility up to
Rs. 15,000/- or the last salary credited in the account whichever is lower, at our
interest rates applicable to Personal Loans to employees, it would be adjustable in
bullet repayment at the time of next salary credit

ELIGIBILITY: OF THE EMPLOYEE AS WELL AS CORPORATES UNDER TIE-

UP ARRANGEMENT:

The employee whose salary account is being opened should be a permanent

employee.
The minimum number of accounts to be opened should be 25 or 75% of the
strength of the permanent employees of the corporate (in that location), whichever
is lower.

Initial Deposit and Minimum Balance Requirements : Zero

Service Charges : It will be a ZERO CHARGES ACCOUNT, i.e., the customer would
not be subjected to any charges in respect of any of the services related to this
account.

Other facilities offered :

 Free Cheque Books for routine requirements (except bulk requirements for loans to
be availed at any other bank- in that case normal cheque book charges would be
levied);

Free Statement of Accounts;

Free inter-sol transactions;

Free funds transfer from their accounts within our CBS branches and at 50% discount
at non-CBS branches;

Free issuance of all types of certificates including interest certificate and balance
certificate, etc;

Free of Cost maintenance of Demat Account (we shall be waiving the charges to be
earned by PNB as annual fee, charges payable to NSDL would be recovered from
the customers);

50% discount in one locker at the branch convenient to the customer;

Free of Cost PNB Debit/ ATM Card;

PNB-HSBC Credit Cards shall also be got considered by HSBC on priority basis
Eligibility
Accounts can be opened in the name of students who have attained the age of 10 years and
above, studying at VARIOUS RECOGNISED EDUCATIONAL INSTITUTIONS.
Initial Deposit Amount/ QAB/Minimum Balance Required
Zero
Overdraft Facility
The overdraft facility shall be given to students (of reputed educational institutions only) who
are staying away from their parents. It would be made available on the request of the student
with the UNDERTAKING TO PAY/ CONSENT LETTER from earning parents/natural
guardian/local guardian of student. In the first year of opening of account, the facility would be
available up-to a maximum limit of Rs.5,000/-. Subsequent to the satisfactory conduct of the
account, in second year it could be enhanced upto Rs. 10,000/-. Other terms & conditions of
this overdraft facility would be as under:
Rate of Interest The overdraft facility would attract at the rate of interest as applicable
to Personal Loans to the general public.
 Age of Student The overdraft facility would be available for the students, having
completed the age of 18 years
Purpose Contingent day to day needs of those students who are staying away
from their parents for the study purposes having got an admission with
recognised and reputed educational institutions.
Repayment For repayment purposes, a single post dated cheque must be obtained
from earning parents/natural guardian/local guardian of student and
kept on record.
Recovery Aspects The overdraft facility must be brought into credit once in 3 months,
failing which recovery process be started. The facility would be
recalled and the student would not be eligible for this overdraft facility
at any branch of our Bank. In any case, this facility should not be
allowed to continue when the student is in the final year of study at that
educational institution, i.e. account has to be got into credit at least six
month before the expiry of the tenure of the study period without any
further continuation of overdraft facility.

Attractive Freebies/Concessions
The following freebies are also admissible:
Demand drafts for all types Free of cost
of fees/examination fees
Initial Deposit Amount The account will be opened without any initial deposit, i.e.,
it
Will be Zero Balance Saving Fund Account
Incidental Charges NIL
Ledger Folio Charges NIL
Retail Internet Banking Free (at CBS branches only)
Services
Intersol transactions Free
including cash
withdrawal/deposits
ATM Card/DEBIT CARD Free (subject to availability of ATMs in the area)
Cheque Book Facility Free (2 cheque books in a year)

NO-FRILLS SAVING BANK ACCOUNT FOR FINANCIAL

INCLUSION OF OOREST/DESERVING SECTIONS OF SOCIETY
 To ensure the financial inclusion of the poorest / deserving sections of the
society, PNB has launched a No-frills Savings Bank Account Scheme
known as PNB ‘MITRA’ SAVINGS BANK ACCOUNT that can be
opened by an INDIVIDUAL singly or jointly, minors of the age of 10
years and above, minors under natural/legal guardianship. An illiterate or a
visually impaired person is also eligible to open account under the scheme
with usual safeguards. Simplified KYC procedures may be adopted for
opening of these accounts.
Product Highlights :

Initial opening of account with just Rs.25/-,

ZERO MINIMUM BALANCE requirement;

Our Bank would allow first 50 transactions in a calendar year Free of

Charge, thereafter a charge of Rs.10/- per transaction would be levied.

Customer would not be allowed to keep balance in this account (taken

together with all other accounts with our Bank) more than Rs.50,000/-
in this account in view of related KYC Norms;.

NO FREE OF COST CHEQUE BOOKS;

PNB SMART ROAMER

The product is aimed at offering Current Account Customers convenient opportunity

to earn extra-returns on surplus funds lying in the accounts which may not normally
be utilised in the near future or are likely to remain un-utilized. The automated nature
of the facility for 'Sweep In or Sweep Out' of more than a lac of rupees, and creating
fixed deposits for desired period, would save lot of operational hassles and create
Customer Value. Roaming Features: The Customers would be able to operate their
'Current Comfort' at all other CBS branches of our Bank. It will facilitate transfer of
funds as well as much faster cheque collection services for the customers,
simultaneously customers will be able to withdraw cash from our CBS branches.
Sweep in and Sweep out
Features:
The Customer shall be able to profitably deploy his funds which were earlier not
attracting any interest. Funds (above Rs. One Lac) lying in Current Accounts and
their ready availability when required for payment/clearance of cheques. The bank
would provide the facility of automatic transfer of balance from Current Accounts
having a balance of over Rs.1,00,000/- (Rupees one lac only) in multiples of
Rs.10,000/- (Rupees Ten Thousand Only) to Fixed Deposit Accounts. Sweep In
Funds would be accepted for a minimum maturity period of 15 days and Maximum
maturity period of 45 days. It will be optional for the customers to indicate desired
periodicity in multiples of 15 days. The customer would get the interest on such
deposit at the term deposit rate applicable for the period indicated by him/her.
Additional
Features
(subject to maintenance of stipulated 'minimum balance' in the account throughout
during previous quarter i.e. clear balance on the closing of everyday should have been
Rs.25,000/- or above) :

i. Free ATM Card;

ii. Free Debit Card (slated to be introduced by the Bank shortly-publicity on this
aspect will begin only after launch)
iii. Free remittance of funds upto an extant of Rs. 25000/- per month at any of
our branches having connectivity under CBS.
iv. One Cheque book of 50 leaves free of cost per quarter to be issued (inclusive
of item no. xii)
v. Free e-mails for statement of account on monthly basis
vi. Same day Credit for outstation cheques drawn on other branches of our Bank
under CBS Connectivity
vii. Free collection of one outstation cheque (issued in favour of customer) per
quarter upto Rs. 10000/-(however, out of pocket expenses shall be recovered)
viii. Immediate credit of outstation cheques upto 15,000/-
ix. 25% concession on Annual Custody Charges for Demat Services
x. 25% concession on service charges for providing EFT Services;
xi. Transaction i.e. T + 3 Days' Credit for outstation cheques drawn on other bank
branches at locations where we have at least one PNB branch under CBS
connectivity.
 xii. If possible, Free Special Cheque Book (under relevant MICR Code) shall also
be issued to customers enabling them to make payment by cheque to
outstation parties at CBS centers.

PNB VAIBHAV ACCOUNT

Features
Quarterly average balance required Rs.5,00,000/- and above
Initial Deposit Amount required for opening of the Rs.5,000/-
account.
Non-maintenance charges Rs.3000/- Qty.
Free (of transaction charges) Unlimited
Transactions allowed
Transaction charged/L.F. charges Free
Inter sol transfer charges – Free
Local non-base branches
Inter sol transfer charges- Free
Outstation non-base branches
Outstation/local-cheques/ Bills, etc. collection charges 50% discount on normal charges
Free Statement on request. Upto 4 in a month
Statement of Account(e-mail on request) Free on monthly basis
Remittance charges/Drafts issuing, etc. 50% discount on normal charges.
Standing Instructions Regn. Free
De-mat A/c Charges (except charges to be paid by Ban to First Year Free
NSDL)
Rebate on Locker Rent (of any size) 50% rebate in locker rent of one
locker
Internet Banking Services Free
Debit-cum-ATM Card Free
RTGS Services 50% concessions on normal
charges.
Personalised Multi-City Cheque Book UNLIMITED
Stop Payment Instruction charges Free
Interest/Balance certificate Free
Cash Withdrawals/Deposits charges – at Local Non-Base Rs.5 lac per day, thereafter 50%
Branches, free upto: discount on normal charges.
Cash Withdrawals/Deposits charges – at outstation Non- Rs.1 lac per day, thereafter 50%
Base Branches, free upto discount on normal charges
Charges on payment of outstation Multicity Cheques, Free Rs.1 lac per day, thereafter 50%
upto discount on normal charges.

PNB GAURAV– CURRENT ACCOUNT

Features
Quarterly average balance required Rs.1,00,000/- and above
Initial Deposit Amount required for opening of the account. Rs.5,000/-
Non-maintenance charges Rs.1200/- Qty.
Free (of transaction charges) 200 in a quarter
Transactions allowed
Transaction charged/L.F. charges Rs.2/- per transaction beyond 200
transaction.
Inter sol transfer charges – Free
Local non-base branches
Inter sol transfer charges- Upto Rs.50,000/- per day – no
Outstation non-base branches charges, thereafter, 50% discount
on normal charges.
Outstation/local-cheques/ Bills, etc. collection charges 25% discount on normal charges
Free Statement on request. Upto 2 in a month
Statement of Account(e-mail on request) Free on Quarterly basis
Remittance charges/Drafts issuing, etc. 20% discount on normal charges.
Standing Instructions Regn. 50% concessions on normal
charges.
De-mat A/c Charges (except charges to be paid by Ban to First Year Free
NSDL)
Rebate on Locker Rent (of any size) 25% rebate in locker rent of one
locker
Internet Banking Services Free
Debit-cum-ATM Card Free
RTGS Services 20% concessions on normal
charges.
Stop Payment Instruction charges Free
Interest/Balance certificate Free

A Multi-Option Fixed Deposit Scheme that fit your needs, timing & resources, to
match your convenience

• Initial Deposit of Rs.1000/-only, and thereafter in convenient multiples of any

amount of Rupee one
• Period of Deposit: (a) Maturity Option: For any period from 15 days to 120
months-For a single Term Deposit less than Rs. 15 lac and for any period from
 7 days to 120 months-For a single Deposit of Rs. 15 lac & above.
(b) Income Option: For any period from 6 months to 120 months.
• At PAR Collection of Fixed Deposit Receipt
• Payable at par at all CBS branches(premature payment, loans andother
miscellaneous matters before maturity of the FDR shall be attended to only by
the issuing branch)
• Multiple options available for interest payment viz. Monthly/Quarterly/Half-
Yearly/Yearly or on maturity
• For an amount of Rs. 10,000/- and above overdraft with cheque book facility
is available, to enable use of deposits. The customer shall also be at liberty to
make use of the facility through ATM-cum-Debit Card under 'Anywhere-
Anytime Banking'. It will enable customers to have freedom to utilise their
Fixed Deposits as and when needed without even coming to the Bank. The
interest is chargeable only for the amount and period for which the overdraft
facility has been availed; The illiterate and blind persons can also open the
account without exercising the option of Overdraft Facility.
• Margin and rate of interest on Loans against deposits under the scheme shall
be as per prescribed guidelines which shall be subject to modifications from
time to time
• Automatic payment of LOCKER rent out of Interest proceeds
• Conversion facility regarding mode of payment of interest allowed;(provided
FDR has been issued for a period of 12 months or more and remaining period
of FD is more than 6 months) without invoking any penal provision
• Premature withdrawal of Deposit without any penalty
• Automatic Renewal facility is provided as per option exercised by the
depositor
• Availability of premature extension
• Part withdrawal in multiples of Rs.1000/- without loss of interest on remaining
FDR
ANUPAM ACCOUNT

Our Bank has several Domestic Deposit Schemes designed to cater to the needs
of various segments of customers to meet your specific requirement.

The features of the Anupam Account Deposit Scheme are as under:

1. Participation

Anupam Account Scheme may be opened in the name of individual(s), sole

proprietorship concern, partnership firm, association, trust, Ltd. Company etc.
However, Anupam Account shall not be opened in the name of a minor,
illiterate and blind persons.

2. Minimum Initial Deposit

Rs.10,000/- and thereafter in multiples of Rs.1000/- thereof.

3. Period of Deposit

For any period from 6 months to 120 months. Existing deposits under Multi
Benefit Deposit Scheme for Rs.10,000/- and above with unexpired term of 6
months or more are eligible for transfer to Anupam Account Scheme.

4. Overdraft Facility

Overdraft facility shall be permitted through a Current Account and a Cheque

Book will be issued to the depositor on the same day.

The margin on the amount of overdraft against the deposit is

For Public

Maturity Period remaining at the time of granting

Margin
overdraft
Upto 2 years 5%
Above 2 years and upto 3 years 7.5%
Above 3 years and upto 4 years 10.0%
Above 4 years and upto 5 years 12.5%
Above 5 years 25%

5. Third Party Advance

Only depositors can avail overdraft facility against their deposits under this
scheme.
No third party advance ie Credit Facility / overdraft to persons other than
depositors is allowed under Anupam Account. Even the overdraft facility to a
proprietorship firm against Fixed Deposit in the name of its proprietor is not
allowed.

6. Premature withdrawal of Deposit

If any depositor desires to withdraw the deposit before maturity, Bank may at
its discretion repay the deposit with upto date quarterly compounded interest at
the rate applicable to the period for which deposit remained with the bank

7. Facility of Further Fixed Deposit in the same Anupam Account

Further, Fixed Deposit can be accepted in the same Anupam Account on your
request and the limit in the overdraft account be increased accordingly against
the additional deposit and it will also be endorsed in the Receipt Form with you.

8. Renewal of Term Deposit on Maturity

Renewal of Fixed Deposit is permitted at your request, if no overdraft is

outstanding against it.

9. Withdrawable in multiples of Rs.1000/-

You may withdraw any amount before maturity anytime as well in multiples of
Rs.1000/- any time according to your convenience without breaking the entire
deposit and also without losing interest on remaining part of Fixed Deposit
Receipt under the Scheme.

MULTI BENEFIT FIXED DEPOSIT SCHEME

 It entitles you to earn interest at term deposit rates on quarterly
compounding basis.
You may open with any amount with a minimum deposit of Rs.1000/- for
any period from 6 months to 120 months.
You can avail the additional facility of automatic renewal of fixed deposit
with or without interest on maturity.
On demand, Loan in this MBFD scheme is also made available by us.

Interest at term deposit rates is computable on quarterly

compounded basis
The small monthly savings in the Recurring Deposit scheme
enable you to accumulate a handsome amount on maturity.

Account can be opened with a minimum monthly deposit of

Rs.100/- or its multiples for a period of 6 months to 120
months in multiples of 3 months.
Interest at term deposit rates is computable on quarterly
compounded basis
The small monthly savings in the Recurring Deposit scheme
enable you to accumulate a handsome amount on maturity.

PNB SWICHA JAMA YOJNA/FLEXI

Individuals can open account, singly or jointly, by a minor of the age of 10
years and above in his name or through his guardian.

A depositor can choose a monthly installment with a minimum of Rs.100 or

above in its multiples. However, the subsequent monthly installment will not
exceed ten times of such core amount without any ceiling on maximum
amount. No matter, even if the monthly installment is skipped.
Deposit accepted for any period from 6 months to 120 months and interest is
paid at term deposit rates on half yearly basis.

Credit Scheme
Housing Loan
Car Loans
Own a vehicle with the friendliest and most convenient car loan. Either you
can purchase a new Car/ Van/ Jeep or raise loan to purchase old vehicles that
are not older than 3 years. Finance will be provided for purchase of vehicle of
indigenous/ foreign makes.

Individuals as well as Business Concerns (Corporate or non-corporate).

For Individuals: 25 times of the monthly net salary OR Rs.15 lac, whichever
is lower. Income of spouse can be taken into account for determining loan
amount. In such cases, the spouse shall stand as a guarantor.

For Business Conerns: No ceiling on loan amount.

The vehicle purchased with the amount of loan is to be hypothecated to the

Bank. It will be registered in the name of the borrower jointly with the Bank.

• Guarantee of spouse, if employed or third party guarantee, OR

• Collateral Security in the shape of either Immovable Property or
Liquid Security equivalent to 100% of loan amount

For new Car/ Van/ Jeep: The loan amount together with interest is to be
repaid maximum in 84 Equated Monthly Instalments (EMIs)

For old Car/ Van/ Jeep: The loan amount together with interest is to be
repaid maximum in 60 Equated Monthly Instalments (EMIs)

1% of the loan amount unt, with a maximum of Rs.4,000/-

Rs.300/- upto Rs.2 Lac

Rs.500/- over Rs.2 Lac

The intending borrower will be required to settle the transaction for purchase
of vehicle needed by him/her with the seller and will be required to deposit
the difference of the cost of the vehicle to amount of loan, and thereafter, the
advance will be allowed to him/her from the bank by paying the entire price
of the vehicle to the seller directly on behalf of the borrower

) All permanent Defence Personnel including officials of Military Station

Headquarters, BSF, CRPF, CISF, ITBP
ii) Confirmed/ permanent employees of Central/ State Govt/ PSUs and all
reputed companies/ Institutions, who are drawing their salary through
accounts maintained with our branches.
Employees of above categories under ‘check-off facility’
iii) Professionally qualified Doctors viz. MBBS, BDS & above having annual
income of Rs.4.00 lac & above.
Minimum Net Monthly Income

- Rs.15000 per month for eligible customers at Metro Centres;

- Rs.12500 per month for eligible customers at Urban Centres; and
- Rs.10000 per month for eligible customers at Semi-Urban and Rural
Centres.

However, for Teachers, Army Jawans, other permanent employees of Military

Station Headquarters and Para Military Personnel whose salary is being
credited and disbursed through our branches the minimum Net Monthly
Income criteria shall be Rs.7500/- at all Centres viz. Metro, Urban, Semi-
Urban and Rural.

Term Loan/ Overdraft – Minimum amount of loan will be Rs.50,000/- and

maximum amount of loan Rs.4,00,000/- or 20 times monthly net salary,
whichever is lower, depending upon the repaying capacity.

Term Loan:
60 Equated Monthly Instalments (EMIs) OR remaining period of service,
whichever is earlier. Instalment to commence one month after disbursement
of loan.
Overdraft:
The overdraft limit shall be adjusted within a maximum period of 60 months
by reducing Drawing Power(DP) equivalent to EMI amount at the beginning
of every month.
However, loan allowed to Army Jawans, other permanent employees of
Military Station Headquarters and Para Military Personnel shall be Repayable
in maximum 36 Equated Monthly Instalments or remaining period of stay at
the particular posting, whichever is lower

In Case of Employees of Govt./Institutions etc.

In case of employees of government/institution etc., irrevocable letter of

authority from the borrower to remit salary/installment and other amount
payable to bank.
Post dated cheques towards monthly installments be obtained from the
borrower under the cover of ‘letter of deposit’ (Mandate of the borrower
conveying deposit of PDCs for appropriation in the loan account).
Where the employer agrees to check off facility, at least one PDC to be
obtained.
In case of Army Officers :
In case of Army Jawans, Other permanent employees of Military Station
Headquarters and Para Military Personnel (Undertaking to be obtained from
the Station Commandant/ Unit Incharge at the time of
retirement/death/transfer of a particular Jawan/Personnel or on transfer of a
unit, loan under the scheme will get adjusted.)

Professional Loan Schemes

PNB extends assistance to self-employed persons, firms and joint ventures of

such professional persons engaged in professions such as:

Medical practitioners including dentists, chartered accountants, cost

accountants, practicing company secretaries, who are not in regular
employment of any employer, accredited journalists or cameramen who are
free lancers, i.e. not employed by a particular newspaper/magazine, lawyers
or solicitors, engineers, architects, surveyors, construction contractors or
management consultants or to a person trained in any other art or craft who
holds either degree or diploma from any institution established, aided or
recognised by Government or to a person who is considered by the bank as
technically qualified or skilled in the field in which he is engaged. Loans
under this scheme may be granted for the purpose of financing purchase of
equipment used by the borrowers, business premises, construction, making
alterations or renovation of business premises/nursing homes or for working
capital requirements, in their professions.

Persons already practicing or new entrants in various professions, having

licenses issued under Central or State Legislations;

Associations of persons engaged in a single profession provided that each

member of such an association is qualified and duly licensed to practice in the
profession; and

The qualified professionals will be required to produce a certified copy of the

license for the record at the bank.
Need based on merits within the overall permissible limits as under:

Metro/ Urban S.Urban/Rural Area

1. Medical practitioners Rs 5.00 lac Rs 10.0 lac

2. Other professionals Rs 5.00 lac Rs 5.00 lac

Margin: Nil up to Rs.25000/-. 25% Above Rs. 25000/-.

Hypothecation/Mortgage of the goods purchased/created with the amount of

loan till the final adjustment of bank's loan and interest thereon.

Collateral security by way of immovable properties or acceptable third party

guarantee in case of advances above Rs. 25000/-.

Term Loan
Loans up to Rs.50000/- 48 months
Loans beyond Rs.50000/- 60 months

Working Capital loans are renewable every year.

Payments will be made direct to the suppliers/ dealers. In case of
construction of the premises, the loan may be disbursed in phases
after verifying the end use in terms of the plan as also at the spot.

The Scheme aims at providing financial assistance to deserving / meritorious students

pursuing higher education in India or abroad. viz., Graduation courses – B.A.,
B.Com., B.Sc., etc., Post-Graduation courses, Masters & Ph.D; Professional courses,
Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer
etc., Computer Certificate courses of reputed Institutes accredited to Department of
Electronics or institutes affiliated to University; Courses like ICWA, C.A., CFA, etc.,
courses conducted by IIM, IIT, IISc, XLRI, NIFT, etc., Regular Diploma/Degree
courses conducted by Colleges/Universities approved by
UGC/Govt./AICTE/AIBMS/ICMR, Regular Degree / Diploma courses like
Aeronautical, Pilot training, Shippling etc. approved by DGCA/ etc., Courses offered
by National Institutes and other reputed Private Institutes.
Students should approach the branch nearest to the place of domicile.
Interest is charged monthly on simple basis during the repayment holiday/moratorium
period & concession of 1% in rate of interest is allowed provided the same is serviced
regularly during study period. Punjab National Bank has tied up with Kotak Mahindra
Insurance to provide life insurance cover for Student borrowers.

Need based finance, subject to repaying capacity of the parents / students with margin
and the following ceilings :-
For studies in India: Maximum Rs.10.00 lacs.
For studies abroad: Maximum Rs.20.00 lacs.
Nil.

Above Rs.4.00 lacs: Studies in India 5%

Studies Abroad 15%
Reimbursement of related expenses such as admission fee, monthly
fee, Boarding and lodging expenses in recognized Boarding Houses
etc. already incurred by way of loan taken from own sources (to meet
the contingency) by the applicant, if claimed within 3 (three) months
of such payment and before consideration of the loan by the Bank.

Second time Education Loan can be sanctioned to the same student

borrower for completion of next higher course
.
Loan against Mortgage

Scheme seeks to provide finance against mortgage of immovable property situated in

Metro/ Urban/ Semi Urban centres. The scheme is designed to offer instant solutions
relating to business needs or for personal needs such as, children's higher education,
travel, daughter's marriage, medical emergencies, etc. Loan is, however, not available
for speculative purpose.

Eligibility

• Employees of Central/ State Govt/ Schools/ Colleges/ Public Sector

Undertakings (PSUs), Reputed Corporates and other intcome tax assesses who
are below the age of 60 years
 • Business Enterprises having a satisfactory track record of
o 3 years of cash profit; and
o Net profit in the immediately preceding financial year

For Individuals

• Minimum net monthly salary/ net annual income of Rs.10,000/ Rs.1,20,000/-

for salaried and for other income tax assesses respectively
• Net annual income should be double that of total EMIs for the year

For Business Enterprises

• Minimum net annual income/ profit of Rs.1,20,000/-

• Net income/ profit should be 1.5 times that of total EMIs for the year

Term Loan & Overdraft

Minimum Loan:- Rs. 1 Lac

Maximum Loan:- Rs.100 Lacs

. OBJECTIVE

Offers attractive benefits as part of a Package to those customers who have the
capacity and are willing to avail a minimum specified loan amount under at least two
or more specified Retail Loan Schemes.

2. SCHEME APPLICABILITY

Authorised Branches.

3. ELIGIBILITY

Individuals, including joint owners, who are willing to avail a minimum loan of
Rs.5.00 lac as a package under at least two specified Retail Loan Schemes at a time.
One of which necessarily be for HOUSING and the other may be any one of the
following purposes:
Car,
Personal or
Education. At the same time, such individuals/ including joint owners should have
adequate capacity to regularly service such loans.

4. PURPOSE

Finance will be allowed for:

Meeting need based requirement of purchase / construction /addition /

repair/alteration/renovation/furnishing of House/Flat. Loans are also available for
purchase of land/plot for House Building.

Loan on pari passu or second charge basis only to confirmed employees of Central/
State Government / Public Sector Undertakings (PSUs) maximum upto Rs. 20 lacs.
The quantum of loan be decided taking into account the amount of earlier loan availed
and repaying capacity of the borrower.

Purchase of New Car.

Meeting urgent requirements of personal nature, such as marriage of children,

holiday, foreign travel, family function, medical expenses etc. However, loan will not
be granted for speculation purposes.Education for Self or Children, including the
school education of the child.

5. AMOUNT OF LOAN

For Housing: Need Based - Minimum Rs.2 lac.

Maximum Rs. 50 lacs

For Car : Need Based - Minimum Rs.2 lac.

For Personal Needs: Need Based - Minimum Rs.1 lac Maximum Rs. 2 lacs

For Education: For Studies in India - Minimum Rs.1 lac Max. Rs.5.00 lac
For Studies abroad - Minimum Rs.1 lac Max. Rs.10.00 lac
6. MARGIN

10% except when loan is availed for Personal and or Educational needs in which case
it shall be Nil.

7. RATE OF INTEREST
Housing -
TENOR Rate of Interest @percent
For loans repayable p.a.
REVISED w.e.f. 01.08.2003
in/upto
i) Upto 5 years 7.75
ii) Above 5 & upto 10 8.25
years

Car - PTLR presently 11.50%

Personal - 13%

Education - 50 basis points below PTLR viz.11%

8. REPAYMENT

Housing - Maximum 10 years (120 months) in equal Monthly Instalments.

For Car and Personal - Maximum 4 years (48 months) in equal Monthly Instalments.

For Education - Maximum 7 years (84 months) in equal Monthly Instalments.

Obtention of advance cheques (P.D.Cs) signed by the borrowers be ensured towards

repayment of equated monthly instalments alongwith letter of deposit. In case of
Housing and Education Loans minimum 24 advance cheques be obtained at a time. In
case of loan of other purposes cheque for complete repayment period be taken.

No moratorium period for repayment will be allowed and repayment to commence

immediately.

9. MODE OF DISBURSEMENT
As per extant guidelines of specific schemes viz. Housing, Car, Personal and
Education. However, No charges for issue of Demand Draft /Bankers cheques are to
be levied.

10. INSURANCE

Comprehensive Insurance Policy to be obtained where loan is allowed for Housing

and Car needs.

11. SECURITY:

Housing

Equitable/ Registered Mortgage of the House/Flat/ Plot Financed.

Obtention of pari passu or second charge over the property mortgaged in favour of
other Lender in situations where senior authorities consider requests and allow loan
only to confirmed employees of Central / State Govts. / Public Sector Undertakings,
who have raised funds for construction / acquisition of accommodation from other
sources and need supplementary finance, for an amount of loan of maximum upto Rs.
20 lacs, which, however, should be for a minimum of Rs. 2lacs as prescribed above.

Car

Hypothecation of the Vehicle financed.

Equitable mortgage should be for the total amount of loan.

12. GUARANTEE

Suitable guarantee acceptable to the Bank may be obtained which may also include
guarantee from family members/other relatives.

13. UPFRONT & DOCUMENTATION CHARGES

Flat Upfront charges of Rs.2,500/- & no documentation charge.

14. PREPAYMENT PENALTY

In case any of the loan facilities allowed are adjusted within a period of three years,
borrower(s) will be required to pay a prepayment Penalty @ 2% on the amount which
had not become due for payment.

15. GENERAL

The concessional loan facility is available provided the combined availment is Rs. 5
lacs or more.

Equitable Mortgage of the Immovable Property against which Housing loan has been
allowed will secure the combined loan for two or more purposes.

Equitable Mortgage shall not to be released till final adjustment of all the loans.

Indian Retail Banking continues to redefine the credit growth in the country. It grew
by a whopping 44.4% in 2005-06 to touch Rs3,538 billion. This leap was despite the
increase in risk weight by RBI for housing and real estate loans during August, 2005.
Housing, which constitutes more than 52% of all retail loans, grew at a robust rate of
44.35% during 2005-06. In order to help banks in India to understand the market and
competition and plan future strategies, we have just come out with an Industry Insight
on Indian Retail banking – 2006 edition. This report analyses the retail banking
market and its segments in India and presents the key trends, along with issues and
challenges. The report also paints a future outlook for the market. Besides it profiles
21 major players in the retail banking space and their strategies.

This report will be of immense use to all banks in India to review and formulate their
strategies in the retail space. It primarily covers analysis of the present status, current
trends, major issues & challenges in the growth of the retail banking sector.

Major points discussed in this report are:

-Global retail banking vis-à-vis Indian scenario

-Indian retail banking overview

-What are the regulatory factors involved in Indian banking industry?
- How interest rate risks, money laundering, and outsourcing are affecting the
performance of banking sector?

- What would be the impact of Basel-II norms in Indian banking industry?

- How the banking industry would combat the competition from upcoming sectors
like mutual funds?
- What are the various issues and challenges before this industry?
With a jump in the Indian economy from a manufacturing sector, that never really
took off, to a nascent service sector, Banking as a whole is undergoing a change. A
larger option for the consumer is getting translated into a larger demand for financial
products and customisation of services is fast becoming the norm than a competitive
advantage.

With the Retail banking sector expected to grow at a rate of 30% [Chanda Kochhar,
ED, ICICI Bank] players are focussing more and more on the Retail and are waking
up to the potential of this sector of banking. At the same time, the banking sector as a
whole is seeing structural changes in regulatory frameworks and securitisation and
stringent NPA norms expected to be in place by 2004 means the faster one adapts to
these changing dynamics, the faster is one expected to gain the advantage. In this
article, we try to study the reasons behind the euphemism regarding the Retail-focus
of the Indian banks and try to assess how much of it is worth the attention that it is
attracting.
Potential for Retail in India: Is sky the limit?
The Indian players are bullish on the Retail business and this is not totally unfounded.
There are two main reasons behind this. Firstly, it is now undeniable that the face of
the Indian consumer is changing. This is reflected in a change in the urban household
income pattern. The direct fallout of such a change will be the consumption patterns
and hence the banking habits of Indians, which will now be skewed towards Retail
products. At the same time, India compares pretty poorly with the other economies of
the world that are now becoming comparable in terms of spending patterns with the
opening up of our economy. For instance, while the total outstanding Retail loans in
Taiwan is around 41% of GDP, the figure in India stands at less than 5%. The
comparison with the West is even more staggering. Another comparison that is
natural when comparing Retail sectors is the use of credit cards. Here also, the
potential lies in the fact that of all the consumer expenditure in India in 2001, less
than 1% was through plastic, the corresponding US figure standing at 18%.

But how competitive are the players?

The fact that the statistics reveal a huge potential also brings with it a threat that is
true for any sector of a country that is opening up. Just how competitive are our
banks? Is the threat of getting drubbed by foreign competition real? To analyze this,
one needs to get into the shoes of the foreign banks. In other words, how do they see
us? Are we good takeover targets? Going by international standards, a large portion of
the Indian population is simply not “bankable”
– taking profitability into consideration. On the other hand, the financial services
market is highly over-leveraged in India. Competition is fierce, particularly from local
private banks such as HDFC and ICICI, in the business of home, car and consumer
loans. There, precisely lie the pitfalls of such explosive growth. All banks are
targeting the fluffiest segment i.e. the upwardly mobile urban salaried class. Although
the players are spreading their operations into segments like selfemployed and the
semi-urban rich, it is an open secret that the big city Indian yuppies form the most
profitable segment. Over-dependence on this segment is bound to bring in inflexibility
in the business.

What about the foreign giants?

The foreign banks have identified this problem but there are certain systematic risks
involved in operating in the Retail market for them. These include regulatory
restrictions that prevent them from expanding their branch network. So these banks
often take the Direct Selling Agent (DSA) route whereby low-end jobs like sourcing
or transaction processing are outsourced to small regional layers. So now on, when
you see a loan mela or a road show showcasing the retail bouquet of an elite MNC
giant, you know that a significant commission earned out of any such booking gets
ploughed back to our own economy. Perhaps, one of the biggest impediments in
foreign players leveraging the Indian markets is the absence of positive credit
bureaus. In the west the risk profile can be easily mapped to things like SSNs and
this information can be publicly traded. PAN is a step in this direction but lot more
work need to be done. What has been a positive step towards this is a negative file
sharing started by a consortium of 11 banks. However, as a McKinsey study points
out actual write-offs on NPAs show a strong negative correlation with sharing of
positive information. On top of this, the spend-now-pay-later “credit culture” in India
is just not picking up. A swift legal procedure against consumers creating bad debt is
virtually nonexistent. Finally, the vast geographical and cultural diversity of the
country makes credit policy formulation a tough job and it simply cannot be dictated
from a Wall Street or a Singapore boardroom! All these add up to the unattractiveness
of the Indian retail market to the foreign players. So over the past few years, in spite
of the entry of MNCs in many industries, Retail Banking has seen a flurry of panicky
exits. Fewer than 40 remain in India and their share of total bank assets currently
7.2% is falling. Those that remain might be thought to be likely buyers of Indian
banks. Yet Citibank, HSBC and Standard Chartered—all in India for more than a
century, and with
relatively large retail networks—seem to have no pressing need to acquire a local
bank.
Established foreign banks have preferred to take over customers or businesses from
other
foreign banks that want to leave. Thus HSBC, in recent years, has acquired customers
from
France's BNP, Germany's Deutsche Bank and Japan's Bank of Tokyo-Mitsubishi.
ABN Amro took over Bank of America's retail business.

So all for the keeping then?

This will perhaps be the most wrongful inference that can be drawn from the above.
We just
cannot afford to look inwards and repeat the mistakes that were the side effects of the
Nationalization of the Banking System. A growing market can never be an alibi for
lack of
innovation. Indian banks have shown little or no interest in innovative tailor-made
products.They have often tried to copy process designs that have been tested, albeit
successfully, in the West. Each economic culture has its own traits and one who
successfully adapts those to the business is the eventual winner. A case in point is the
successful implementation of micro-credit networks in Bangladesh. Positioning a
bank as a tech-savvy financial vendor in a country where Internet penetration is an
abysmal 1.65% can only add to the over-leveraging as pointed out earlier. The focus
of the sector should remain in macroeconomic wealth creation and not increasing the
per capita indebtedness that will do little but add to the NPA burden. Retail Banking
in India has to be developed in the Indian way, notwithstanding the long queues in
front of the teller counter in the SBI Joka branch!
 Chapter-3

Need and
Importance of the
Study
IMPORTANCE
To know the awareness & acceptance of change
is very important because if customers are not
satisfied and accepting the changes then the
whole investment is useless and without
knowing it further investment is fruitless.
 Chapter 4

Objectives of Druk
Punjab National
Bank Limited
 OBJECTIVES OF SURVEY

• To rank the services of Druk Punjab National Bank Limited

• To rank the different sectors of Druk Punjab National Bank Limited
• To rank the presentation and efficiency of banking in Bhutan
• To evaluate the satisfaction customers of Druk PNB Bank Limited of Bhutan
after the introduction of recent changes.
• To identify the shortcomings & scope for further improvement.
• To study the various services offered by PNB
• To measure behavior of staff is satisfactory towards customers.
• To check out staff co-operation towards customers.
• To measure manager co-operation towards customers.
Chapter 5
Research
Methodology and
Sampling
 RESEARCH METHODOLOGY

Research Methodology refers to the method the researchers use in performing

research operations. In other words, all those methods, which are used by the
researcher during the course of studying his research problem, are termed as
Research Methods.

RESEARCH DESIGN

A research project conducted scientifically has a specific frame work of research from
problem identification to presentation of research report. This framework of
conducting research is known as Research Design.
A research can be conducted without a research plan but it may not solve the problem.
A research cannot achieve its objectives without proper research design, without
design, it increase its cost and energy.

DESCRIPTIVE RESEARCH DESIGN

Descriptive research includes surveys and facts finding enquiry’s of different finds.
The major purpose of descriptive research is description of the state of affairs as it
exists at present. The main characteristics of this method are that the researcher has no
control over the variable. He can only report what has happened or what is happening.
Most are post facts research projects are used for descriptive studies in which the
researcher seeks to measure such items as for example frequency of shopping,
preference of people or similar data. Ex post facts studies also include attempt by
researchers to discover causes even way when they cannot control the variables. The
method of research utilized in descriptive research is survey method of all kinds,
including comparative and correctional methods.
The study is about customer satisfaction regarding services in PNB. It is being made
because Customer satisfaction is the key to the profitability of the banking. It implies
the retention of customers for the long term, which is cheaper than altercating new
customers. In current scenario bank becoming larger the closure of branches and the
advent of internet banking, the question arises whether the customers are satisfied or
not.

DATA COLLECTION

PRIMARY DATA with the help of self structured, questionnaire was collected to the
address the research objectives and keeping in tune with the research design.
SECONDARY DATA consisted from “Journals, Magazines, and Books & Websites.”

SAMPLING TECHNIQUE

Sampling is necessary because it is almost impossible to examine the entire parent

population or universe. Various factors such as time available, cost, purpose of study
etc. make it necessary for the researchers to choose a sample. It should neither be too
small nor too big.

SAMPLE SIZE
 40 Customers.

MODE OF DATA COLLECTION

 Questionnaire
 ROLES AND RESPONSIBILITIES
• Opening of accounts of customer.
• Opening of accounts of students.
• Filling the forms of the customers.
• Help customers to learn how to fill different types of vouchers.
• Receiving the cheques.
• Ascertain progress regarding student accounts in various branches.
• Deposited the cheques of the customers.
• Made transfer entries on the computer.
• Entries of the cheques in the computer.
• Checking of records in the locker room.
• Made reminders for customers so that they can know rather they have paid their
rent
for the locker.
• Went to schools so that help them to open the student accounts.
• Entries of cash vouchers and evaluation of entries of the Fixed deposit from one
ledger
to another.

DESCRIPTION OF EXPERIENCES
 Uneducated customers were not abling to fill their Forms properly
 Due to the lack of the employees’ ledger were not in good condition.
 Recording of the data was incomplete and due to which they were not able to
clarify
the dues.
 But due to the computer the job of the employees is simpler.
 Now they have to pass simple entries and all records is maintained easily
without any
confusion.
  There job is much simpler than before now they can make changes, add,
modify at
the same time in a easy manner that is an achievement for bank
 I learnt many things in the bank but the most interesting thing I like there is
the
Environment of the bank the employees help each other rather they the job of
other
or not but they help each other.
 Conflicts arise between them because of the lack of the customers they add
wrong
information in their cheques or vouchers that cannot be passed.
 I learnt many things I have good and bad experiences both over their before I
I was
not aware of anything in the bank now I know many things.
 I can say that while working over their no employee leaves its work pending
for net
day because if they let it pending than they can not end their day and by hook
or
crook they have to finish it.
 My experience says that working in bank is not as easy as we think because
Managing each and every thing is not easy task.
 They have to interact with differ rent types of people so it’s very tough.
 Chapter-6
DATA
ANALYSIS
AND
INTERPRETATIO
N
 DATA ANALYSIS and INTERPRETATION
TABLE
HOW IS BEHAVIOUR OF STAFF?

OCCUPATION GOOD SATISFA- VERY UNATIS TOTAL %AGE

CTORY GOOD FACTORY
SERVICE 6 4 1 2 13 32.5
STUDENT 4 2 1 1 8 20.0
RETIRED 2 0 2 0 4 10.0
BUSINESS 4 2 3 2 11 27.5
HOUSE HOLD 2 1 0 1 4 10.0
TOTAL 18 9 7 6 40 100

GOOD
SATISFACTORY
VERY GOOD
UNSATISFACTORY
 TABLE
DO YOU FIND OUT STAFF CO-OPERATVE/COURTEOUS?

OCCUPATION YES NO TOTAL %AGE

SERVICE 5 8 13 32.5
STUDENT 3 5 8 20.0
RETIRED 2 2 4 10.0
BUSINESS 8 3 11 27.5
HOUSE HOLD 2 2 4 10.0
TOTAL 20 20 40 100

yes
no
 TABLE
WHETHER FACILITY OF LOCKER IS UPTO THE MARK?
OCCUPATION YES NO TOTAL %AGE

SERVICE 10 3 13 32.5
STUDENT 6 2 8 20.0
RETIRED 3 1 4 10.0
BUSINESS 9 2 11 27.5
HOUSE HOLD 3 1 4 10.0
TOTAL 31 9 40 100

yes
no
 TABLE
IS MANAGER & STAFF RECEPTIVE TO YOUR PROBLEMS?
OCCUPATION YES NO TOTAL %AGE

SERVICE 9 4 13 32.5
STUDENT 3 5 8 20.0
RETIRED 3 1 4 10.0
BUSINESS 6 5 11 27.5
HOUSE HOLD 3 1 4 10.0
TOTAL 24 16 40 100

yes
no

TABLE
 HOW MUCH TIME IS TAKEN IN OPENING OF AN ACCOUNT?
OCCUPATION 15 30 1 2 HOURS/ TOTAL %AGE
MINUTES MINUTES HOUR MORE
SERVICE 6 5 2 0 13 32.5
STUDENT 2 4 2 0 8 20.0
RETIRED 2 2 0 0 4 10.0
BUSINESS 5 3 2 1 11 27.5
HOUSE HOLD 3 1 0 0 4 10.0
TOTAL 18 15 6 1 40 100

15 minutes
30 minutes
1 hour
2 hours/more

TABLE
 DO YOU WANY TO AVAIL OUR CREDIT FACILITIES?
OCCUPATIO PERSONAL CONSUMER OTHERS HOUSING CAR TOTA %AGE
N LOAN LOAN LOAN LOAN L
SERVICE 1 1 6 2 3 13 32.5
STUDENT 1 4 1 1 1 8 20.0
RETIRED 4 0 0 0 0 4 10.0
BUSINESS 2 5 0 2 2 11 27.5
HOUSEHOLD 2 0 0 2 0 4 10.0
TOTAL 10 10 7 7 6 40 100

personal loan
consumer loan
others
housing loan
car loan

Chapter-7
FINDINGS AND
CONCLUSIONS
 FINDINGS AND CONCLUSIONS
FINDINGS

 DPNBL was registered on 31st December 2008 under the Companies Act of
Kingdom of Bhutan 2000 and was issued certificate of license to act as
Commercial Bank by the Royal Monetary Authority of Bhutan on 20th January
2010

 DPNBL is having a distribution network of more than 4000 branches. This is

the main strength of the DPNBL, which cannot be the strength of any other
bank.

 DPNBL is the oldest bank from 1895, so it has a strong band image in the
market built over the time & a huge stockpile of the customers under its arms.

 The age group of employees is mostly towards at higher side, which is

adversely affecting the productivity, as they do not have any enthusiasm left.

 DPNBL as not much computer savy and works more manually, which restricts
its scope of business.

 The process of certain activities of the bank is very much lengthy, as a result
of which now a day’s people prefer to go towards private banks.

 The working environment of the bank is not so much healthy and clean as
result of which customers even hesitate to enter the bank.
Conclusions
 Bank requires good sitting arrangements for the old generation so that they can
get their work done easily and in a manner and get fully satisfied.
 Promotions to the employees should be given and their salary must be
increased.
 Maximum tax benefit is availed from home loan and minimum from car loan.
 Maximum number of borrowers were get influenced by dealer/agent and
minimum by relative. So bank requires introducing new advertisement for
loan schemes.
 Bank requires to make better arrangements in sitting and standing in the
branch.
 Bank has to maintain its working environment as result of which customers
not even hesitate to enter the bank.

SUGGESTIONS
Despite the fact that Druk Punjab National Bank Limited has the second largest
customers, I would like to suggest some measures to be taken into consideration
for further strengthening the position.

• The age group of employees is mostly towards at higher side, which is

adversely affecting the productivity, as they do not have any enthusiasm
left.
• DPNBL as not much computer savvy and works more manually, which
restricts its scope of business.
• The process of certain activities of the bank is very much lengthy, as a
result of which now a day’s people prefer to go towards private banks.
• The working environment of the bank is not so much healthy and clean as
result of which customers even hesitate to enter the bank.
References
 References
 Philip Kotler, 2004-2005 Marketing Management, PHI, NewDelhi.

 C.R. Kothari, 2001Research Methodology, Wishwa prakashan,

New Delhi.

 Indian Journal of Marketing.

 Website of PNB.