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Punjab National Bank:

Implementing CRM


Retail banking refers to mass-market banking where
individual customers typically use banks for services such
as savings and current accounts, mortgages, loans (e.g.
personal, housing, auto, and educational), debit cards,
credit cards, depository services, fixed deposits,
investment advisory services (for high net worth
individuals) etc. Before Internet era, consumers largely
selected their banks based on how convenient the
location of banks branches was to their homes or offices.
With the Advent of new technologies in the business of
bank, such as Internet banking and ATMs, now customers
can freely choose any bank for their transactions. Thus
the customer base of banks has increased, and so has the
choices of customers for selecting the banks. This is just
the beginning of the story. Due to globalization a new
generation of private sector banks and many foreign
banks has also entered the market and they have brought
with them several useful and innovative products. Due to
forced competition, public sector banks are also
becoming more technology savvy and customer oriented.
Thus, Non-traditional competition, market consolidation,
new technology, and the proliferation of the Internet are
changing the competitive landscape of the retail banking
industry. Today retail banking sector is characterized by
Multiple products (deposits, credit cards, insurance,
investments and securities)
Multiple channels of distribution (call center, branch,
Internet and kiosk)
Multiple customer groups (consumer, small business,
and corporate)
Today, the customers have many expectations from
bank such as
(i) Service at reduced cost
(ii) Service Anytime Anywhere
(iii) Personalized Service

With increased number of banks, products and services

and practically nil switching costs, customers are easily
switching banks whenever they find better services and
products. Banks are finding it tough to get new customers
and more importantly retain existing customers.

PNB: Introduction

Established in 1895 at Laho re, undivided India, P

unjab nationa l Bank (PNB) was the first
Indian bank to have been started solely with Indian
capital. The bank was nationalized in July 1969 along with
13 other banks. From its modest beginning, the
bank has grown in siz e and stature to become a
front-line banking institution in India at present. PNB has
the largest branch network in India - 4525 offi ces
including 432 extension counters spread throughout the
country. It has been ranked as 248th biggest bank in
the world by Bankers Almanac, London
It had correspondent banking relationship with more than
217 international banks of world.
The vision of PNB is to be a Leading Global Bank with Pan
India footprints and become a househo ld brand in
the Indo - Gangetic Pla ins providing entire range
of financial products and services under one roof. With this
vision in mind they work as the "Banking for the unbanked".

Products and Services

Apart from offering banking products, the bank has also entered
the credit card & debit card business; bullion business; life and
nonlife insurance business; Gold coins and asset management business,
etc. Different products and services of the bank is as follows:
Savings Fund Account - Total Freedom Salary Account,
PNB Prudent Sweep, PNB Vidyarthi SF Account, PNB Mitra
Current Account - PNB Vaibhav, PNB Gaurav, PNB Smart
Fix Deposit Schemes Spectrum Fixed Deposit Scheme, Anupam
Account, Mahabachat Schemes, Multi Benefit Deposit.
Scheme credit Schemes Flexible Housing Loan, Car Finance,
Personal Loan, Credit Cards.
Social Banking - Mahila Udyam Nidhi Scheme, Krishi Card,
PNB Farmers Welfare Trust.
Corporate Banking - Gold Card scheme for exporters, EXIM
Business Sector - PNB Karigar credit card, PNB Kushal
Udhami, PNB Pragati Udhami, PNB Vikas Udhami

Leading the trend in the Indian banking industry, PNB has
decided to take a leap ahead to be more customer-centric
than ever. SAP CRM has been adopted as a solution that
would enable the Bank to be a step closer to its
customers and facilitate:
Better understanding of customers and their needs
Cross-sell and up-sell Banks products and services
depending upon customers needs
Improved customer service including efficient and
effective complaint management.

CRM implementation has been positioned as Customer

First. As the name signifies, the initiative is mainly to
highlight the importance of the customer to the bank and
in turn generate a sense of recognition and loyalty into
the customers as well as prospects.

Relationship strategies:
CRM (Customer Relationship Management) solution
deployed across all the branches of 11 identified circles.
This enabled the marketing teams to effectively
implement their strategy, making good use of higher
visibility. The CRM helps the bank now to better retain
existing customers by cross-selling and up-selling, to
attract new customers by offering various value added
products and services, and even convert loss making
customers into profitable ones.
PNB also uses online trading services for customers. Now
consumers can enjoy the convenience of investing in
financial products from the comfort of their home /
offices by using SMC Global's website, also online trading
link in provided on PNB bank's website.
PNB also provide SFMS (structural financing messaging
system) services. It is the modernized web enabled
software for financial message communication. It
facilitates centralized or distributed deployment, secured
messaging and routing based on store and forward
Online Assistance - PNB provides its customers
online assistance by providing i-banking, online
complaints, providing then information about various
products and services. These complaints and assistance
are processed by customer care services.

Customer Information - In PNB the customer

information collected from the customers shall not be
used for cross selling of services or products by the Bank,
their subsidiaries and affiliates. If the Bank proposes to
use such information, it should be strictly with the
consent of the accountholder.
Bank did not disclose details / particulars of the
customer's account to a third person or party without the
expressed or implied consent from the customer.
However, there are some exceptions, viz. disclosure of
information under compulsion of law, where there is a
duty to public to disclose and where interest of the Bank
requires disclosure.
GRIEVANCES- In case there is problem to the
customers the bank use some strategies to make
customer convenient. Depositors having any complaint /
grievance with regard to services rendered by the Bank
has a right to approach authority designated by the Bank
for handling customer complaint / grievances. The details
of the internal set up for redressal of complaints /
grievances will be displayed in the branch premises. The
branch officials shall provide all required information
regarding procedure for lodging the complaint. In case
the depositor does not get response from the Bank within
60 days from date of complaint or he is not satisfied with
the response received from the Bank, he has a right to
approach Banking Ombudsman appointed by the Reserve
Bank of India.
For the convenience of customers PNB provides
bancassurance, through which if the customer wants
insurance services with the banking they can avail in a
single place. It is also for the convenience of the
PNB also work for rural area's people, through micro-
finance. The employees of PNB go their and through
personal talk with rural peoples they get to know about
their financial and economical condition. And they offer
them relevant banking services according to their budget.
Enabling over 55,000 employees in over 4,500 locations
to serve customers and conduct regular banking duties in
Punjab National Bank. Like other banks, PNB too had to
adhere to risk compliance and have a 360 degree view of
its customers and MIS.
PNB owe the success of their organization to their
consultants. They lay equal emphasis on Consultant and
client satisfaction and believe in the saying "Satisfied
Consultants lead to Satisfied Clients". With the personal
growth of consultant in mind, roles and projects are
changed at least once in every nine months.
PNB Advanced Development centre at Bangalore gives an
advantage of 24X7 work culture to our global clients. The
turnaround time can be fixed based on the client's
Bank communicates users via email or other online/offline
delivery devices only if the customer agrees to receive
those communications. Customers, who believe that they
are receiving our communications in error or no longer
desire to receive them, should inform us and we will
remove that customer's name from our mailing lists. This
is also the main strategy to keep in contact with
Punjab National Bank also mainly focus on reducing
customer defection, through the following steps:
Firstly they define and measure its retention rate.
Second, they distinguish the cause of customer
attrition and identify those that can be managed
Third, they estimate how much profit it loses when it
loses customers.
Fourth, they figure out how much it would cost to
reduce the defection rate.
Forming strong customer bonds: PNB form strong
customer bonds through the following steps:
Get cross-department participation in planning and
managing the customer satisfaction and retention
Integrate the "voice of the customer" to capture their
stated and unstated needs or requirements in all
business decisions.
They create superior products, services, and
experiences for the target market.
Make it easy to reach customer to appropriate
company personnel and express their needs,
perception, and complaints.
Run award programs recognizing outstanding
PNB provide wide range of services to fulfil all needs of
customers i.e. :
Savings Fund Account - PNB Prudent Sweep, Total
Freedom Salary Account, PNB Vidyarthi SF Account,
PNB Mitra SF Account
Current Account - PNB Smart Roamer, PNB
Vaibhav, PNB Gaurav
Fixed Deposit Schemes - Mahabachat Schemes,
Spectrum Fixed Deposit Scheme, Anupam Account,
Multi Benefit Deposit Scheme
Credit Schemes - PNB Flexible Housing Loan, Car
Finanace, Personal Loan
Social Banking - Krishi Card, PNB Farmers Welfare
Trust, Mahila Udyam Nidhi Scheme
Corporate Banking - EXIM finance, Gold Card
scheme for exporters
Business Sector - PNB Vikas Udhami, PNB Karigar
credit card, PNB Kushal Udhami, PNB Pragati
UdhamiMoreover, the Punjab National Bank of India
also offers locker facilities, senior citizens schemes,
PPF schemes and various E-services to their
ATM facilities: PNB feels that ATMs offer many advantages
over conventional branch-based banking like low cost per
transaction and customer convenience. To encourage
this, the bank has installed various ATMs, networked. A
Base24 switch controls the ATMs. PNB has formed a
consortium of seven banks and has principally agreed to
share the ATM facilities amongst themselves.