CHAPTER 1

INTRODUCTION

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 INDUSTRY PROFILE

INTRODUCTION TO BANKING IN INDIA

The banking section will navigate through all the aspects of the Banking System in India.
It will discuss upon the matters with the birth of the banking concept in the country to
new players adding their names in the industry in coming few years.

The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association
(IBA) and top 20 banks like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well
defined under three separate heads with one page dedicated to each bank.

However, in the introduction part of the entire banking cosmos, the past has been well
explained under three different heads namely:
History of Banking in India
Nationalization of Banks in India
Scheduled Commercial Banks in India

The first deals with the history part since the dawn of banking system in India.
Government took major step in the 1969 to put the banking sector into systems and it
nationalized 14 private banks in the mentioned year. This has been elaborated in
Nationalization Banks in India. The last but not the least explains about the scheduled and
unscheduled banks in India. Section 42 (6) (a) of RBI Act 1934 lays down the condition
of scheduled commercial banks. The description along with a list of scheduled
commercial banks are given on this page

HISTORY OF BANKING IN INDIA

Without a sound and effective banking system in India it cannot have a healthy economy.
The banking system of India should not only be hassle free but it should be able to meet
new challenges posed by the technology and any other external and internal factors.

For the past three decades India's banking system has several outstanding achievements

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to its credit. The most striking is its extensive reach. It is no longer confined to only
metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even
to the remote corners of the country. This is one of the main reasons of India's growth
process.

The government's regular policy for Indian bank since 1969 has paid rich dividends
With the nationalization of 14 major private banks of India.

Not long ago, an account holder had to wait for hours at the bank counters for getting a
draft or for withdrawing his own money. Today, he has a choice. Gone are days when the
most efficient bank transferred money from one branch to other in two days. Now it is
simple as instant messaging or dials a pizza. Money has become the order of the day.

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

Early phase from 1786 to 1969 of Indian Banks

Nationalization of Indian Banks and up to 1991 prior to Indian banking sector
Reforms.
New phase of Indian Banking System with the advent of Indian Financial

& Banking Sector Reforms after 1991.

To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and
Phase III.

Phase I

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan
and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of
Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency

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

In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab
National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and
1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank,
and Bank of Mysore were set up. Reserve Bank of India came in 1935.

During the first phase the growth was very slow and banks also experienced periodic
failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To
streamline the functioning and activities of commercial banks, the Government of India
came up with The Banking Companies Act, 1949 which was later changed to Banking
Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of
India was vested with extensive powers for the supervision of banking in India as the
Central Banking Authority.

During those days public has lesser confidence in the banks. As an aftermath deposit
mobilisation was slow. Abreast of it the savings bank facility provided by the Postal
department was comparatively safer. Moreover, funds were largely given to traders.

Phase II

Government took major steps in this Indian Banking Sector Reform after independence.
In 1955, it nationalized Imperial Bank of India with extensive banking facilities on a
large scale especially in rural and semi-urban areas. It formed State Bank of India to act
as the principal agent of RBI and to handle banking transactions of the Union and State
Governments all over the country.

Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th
July, 1969, major process of nationalization was carried out. It was the effort of the then
Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country
were nationalized.

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

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

1949: Enactment of Banking Regulation Act.

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

After the nationalization of banks, the branches of the public sector bank India rose to
approximately 800% in deposits and advances took a huge jump by 11,000%.

Banking in the sunshine of Government ownership gave the public implicit faith and
immense confidence about the sustainability of these institutions.

Phase III
this phase has introduced many more products and facilities in the banking sector in its
reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was
set up by his name which worked for the liberalisation of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being put to
give a satisfactory service to customers. Phone banking and net banking is introduced.
The entire system became more convenient and swift. Time is given more importance
than money.

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The financial system of India has shown a great deal of resilience. It is sheltered from any
crisis triggered by any external macroeconomics shock as other East Asian Countries
suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the
capital account is not yet fully convertible, and banks and their customers have limited
foreign exchange exposure.

SCHEDULED COMMERCIAL BANKS IN INDIA

The commercial banking structure in India consists of:

Scheduled Commercial Banks in India
Unscheduled Banks in India

Scheduled Banks in India constitute those banks which have been included in the Second
Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only those
banks in this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the
Act.

As on 30th June, 1999, there were 300 scheduled banks in India having a total network of
64,918 branches. The scheduled commercial banks in India comprise of State bank of
India and its associates (8), nationalized banks (19), foreign banks (45), private sector
banks (32), co-operative banks and regional rural banks.
"Scheduled banks in India" means the State Bank of India constituted under the State
Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of
India (Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted
under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings)
Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and
Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank
included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), but
does not include a co-operative bank".

"Non-scheduled bank in India" means a banking company as defined in clause (c) of

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section 5 of the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled
bank".

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

State Bank of India
State Bank of Bikaner and Jaipur
State Bank of Hyderabad
State Bank of Indore
State Bank of Mysore
State Bank of Saurashtra
State Bank of Travancore
Andhra Bank
Allahabad Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Dena Bank
Indian Overseas Bank
Indian Bank
Oriental Bank of Commerce
Punjab National Bank
Punjab and Sind Bank
Syndicate Bank
Union Bank of India
United Bank of India
UCO Bank
Vijaya Bank

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The following are the Scheduled Banks in India (Private Sector):
ING Vysya Bank Ltd
Axis Bank Ltd
Indusind Bank Ltd
ICICI Bank Ltd
South Indian Bank
HDFC Bank Ltd
Centurion Bank Ltd
Bank of Punjab Ltd
IDBI Bank Ltd

The following are the Scheduled Foreign Banks in India:

American Express Bank Ltd.
ANZ Gridlays Bank Plc.
Bank of America NT & SA
Bank of Tokyo Ltd.
Banquc Nationale de Paris
Barclays Bank Plc
Citi Bank N.C.
Deutsche Bank A.G.
Hongkong and Shanghai Banking Corporation
Standard Chartered Bank.
The Chase Manhattan Bank Ltd.
Dresdner Bank AG.

BANKING SERVICES IN INDIA

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With years, banks are also adding services to their customers. The Indian banking
industry is passing through a phase of customers market. The customers have more
choices in choosing their banks. A competition has been established within the banks
operating in India.

With stiff competition and advancement of technology, the services provided by banks
have become more easy and convenient. The past days are witness to an hour wait before
withdrawing cash from accounts or a cheque from north of the country being cleared in
one month in the south.

This section of banking deals with the latest discovery in the banking instruments along
with the polished version of their old systems.

BANK ACCOUNT
The most common and first service of the banking sector. There are different types of
bank account in Indian banking sector. The bank accounts are as follows:

Bank Savings Account - Bank Savings Account can be opened for eligible
person / persons and certain organizations / agencies (as advised by Reserve Bank
of India (RBI) from time to time)

Bank Current Account - Bank Current Account can be opened by individuals /

partnership firms / Private and Public Limited Companies / HUFs / Specified
Associates / Societies / Trusts, etc.
Bank Term Deposits Account - Bank Term Deposits Account can be opened by
individuals / partnership firms / Private and Public Limited Companies / HUFs/
Specified Associates / Societies / Trusts, etc.
Bank Account Online - With the advancement of technology, the major banks in
the public and private sector has faciliated their customer to open bank account
online. Bank account online is registered through a PC with an internet
connection. The advent of bank account online has saved both the cost of
operation for banks as well as the time taken in opening an account.

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PLASTIC MONEY

Credit cards in India are gaining ground. A number of banks in India are encouraging
people to use credit card. The concept of credit card was used in 1950 with the launch of
charge cards in USA by Diners Club and American Express. Credit card however became
more popular with use of magnetic strip in 1970.

Credit card in India became popular with the introduction of foreign banks in the country.

Credit cards are financial instruments, which can be used more than once to borrow
money or buy products and services on credit. Basically banks, retail stores and other
businesses issue these.

LOANS
Banks in India with the way of development have become easy to apply in loan market.
The following loans are given by almost all the banks in the country:
Personal Loan
Car Loan or Auto Loan
Loan against Shares
Home Loan
Education Loan or Student Loan

In Personal Loan, one can get a sanctioned loan amount between Rs 25,000 to 10, 00,000
depending upon the profile of person applying for the loan. SBI, ICICI, HDFC, HSBC
are some of the leading banks which deals in Personal Loan.

Almost all the banks have jumped into the market of car loan which is also sometimes
termed as auto loan. It is one of the fast moving financial products of banks. Car loan / auto
loan are sanctioned to the extent of 85% upon the ex-showroom price of the car with
some simple paper works and a small amount of processing fee.

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Loan against shares is very easy to get because liquid guarantee is involved in it.

Home loan is the latest craze in the banking sector with the development of the
infrastructure. Now people are moving to township outside the city. More number of
townships is coming up to meet the demand of 'house for all'. The RBI has also
liberalised the interest rates of home loan in order to match the repayment capability of
even middle class people. Almost all banks are dealing in home loan. Again SBI, ICICI,
HDFC, HSBC are leading.

The educational loan, rather to be termed as student loan, is a good banking product for the
mass. Students with certain academic brilliance, studying at recognised
colleges/universities in India and abroad are generally given education loan / student loan
so as to meet the expenses on tuition fee/ maintenance cost/books and other equipment.

MONEY TRANSFER
Beside lending and depositing money, banks also carry money from one corner of the
globe to another. This act of banks is known as transfer of money. This activity is termed
as remittance business. Banks generally issue Demand Drafts, Banker's Cheques, Money
Orders or other such instruments for transferring the money. This is a type of Telegraphic
Transfer or Tele Cash Orders.

It has been only a couple of years that banks have jumped into the money transfer
businesses in India. The international money transfer market grew 9.3% from 2003 to
2004 i.e. from US$213 bn. to US$233 bn. in 2004. Economists say that the market of
money transfer will further grow at a cumulative 12.1% average growth rate through
2009.

FUTURE OF BANKING IN INDIA

A healthy banking system is essential for any economy striving to achieve good growth
and yet remain stable in an increasingly global business environment. The Indian banking

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system has witnessed a series of reforms in the past, like deregulation of interest rates,
dilution of government stake in PSBs, and increased participation of private sector banks.
It has also undergone rapid changes, reflecting a number of underlying developments.
This trend has created new competitive threats as well as new opportunities. This paper
aims to foresee major future banking trends, based on these past and current movements
in the market.
Given the competitive market, banking will (and to a great extent already has) become a
process of choice and convenience. The future of banking would be in terms of
integration. This is already becoming a reality with new-age banks such as YES Bank,
and others too adopting a single-PIN. Geography will no longer be an inhibitor.
Technology will prove to be the differentiator in the short-term but the dynamic
environment will soon lead to its saturation and what will ultimately be the key to success
will be a better relationship management.

OVERVIEW
If one were to say that the future of banking in India is bright, it would be a gross
understatement. With the growing competition and convergence of services, the
customers (you and I) stand only to benefit more to say the least. At the same time,
emergence of a multitude of complex financial instruments is foreseen in the near future
(the trend is visible in the current scenario too) which is bound to confuse the customer
more than ever unless she spends hours (maybe days) to understand the same. Hence, I
see a growing trend towards the importance of relationship managers. The success (or
failure) of any bank would depend not only on tapping the untapped customer base (from
other departments of the same bank, customers of related similar institutions or those of
the competitors) but also on the effectiveness in retaining the existing base.

India has witness to a sea change in the way banking is done in the past more than two
decades. Since 1991, the Reserve Bank of India (RBI) took steps to reform the Indian
banking system at a measured pace so that growth could be achieved without exposure to
any macro-environment and systemic risks. Some of these initiatives were deregulation
of interest rates, dilution of the government stake in public sector banks (PSBs),

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guidelines being issued for risk management, asset classification, and provisioning.
Technology has made tremendous impact in banking. Anywhere banking and Anytime
banking have become a reality. The financial sector now operates in a more competitive
environment than before and intermediates relatively large volume of international
financial flows. In the wake of greater financial deregulation and global financial
integration, the biggest challenge before the regulators is of avoiding instability in the
financial system.

RISK MANAGEMENT
The future of banking will undoubtedly rest on risk management dynamics. Only those
banks that have efficient risk management system will survive in the market in the long
run. The effective management of credit risk is a critical component of comprehensive
risk management essential for long-term success of a banking institution.

Although capital serves the purpose of meeting unexpected losses, capital is not a
substitute for inadequate decontrol or risk management systems. Coming years will
witness banks striving to create sound internal control or risk management processes.
With the focus on regulation and risk management in the Basel II framework gaining
prominence, the post-Basel II era will belong to the banks that manage their risks
effectively. The banks with proper risk management systems would not only gain
competitive advantage by way of lower regulatory capital charge, but would also add
value to the shareholders and other stakeholders by properly pricing their services,
adequate provisioning and maintaining a robust financial structure.

The future belongs to bigger banks alone, as well as to those which have minimized their
risks considerably.

COMPANY PROFILE

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INTRODUCTION

Punjab National Bank of India, the first Indian bank started only with Indian capital,
was nationalized in July 1969 and currently the bank has become a front-line banking
institution in India with 4525 Offices including 432 Extension Counters. The corporate
office of the bank is at New Delhi. Punjab National Bank of India has set up
representative offices at Almaty (Kazakhistan), Shanghai (China) and in London and a
full fledged Branch in Kabul (Afghanistan).

Punjab National Bank with 4497 offices and the largest nationalized bank is serving its
3.5 crore customers with the following wide variety of banking services:
Corporate banking
Personal banking
Industrial finance
Agricultural finance
Financing of trade
International banking

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

Punjab National Bank India maintains relationship with more than 200 leading
international banks world wide. PNB India has Rupee Drawing Arrangements with 15
exchange companies in UAE and 1 in Singapore.

HISTORY OF THE BANK

Punjab National Bank (PNB) was registered on May 19, 1894 under the Indian
Companies Act with its office in Anarkali Bazaar Lahore. The Bank is the second largest

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government-owned commercial bank in India with about 4,500 branches across 764
cities. It serves over 37 million customers. The bank has been ranked 248th biggest bank
in the world by Bankers Almanac, London. The bank's total assets for financial year 2007
were about US$60 billion. PNB has a banking subsidiary in the UK, as well as branches
in Hong Kong and Kabul, and representative offices in Almaty, Dubai, Oslo, and
Shanghai.
1895: PNB commenced its operations in Lahore. PNB has the distinction of being
the first Indian bank to have been started solely with Indian capital that has
survived to the present. (The first entirely Indian bank, the Ouch Commercial
Bank, was established in 1881 in Faizabad, but failed in 1958.) PNB's founders
included several leaders of the Swadeshi movement such as Dyal Singh Majithia
and Lala HarKishen Lal,[1] Lala Lalchand, Shri Kali Prosanna Roy, Shri E.C.
Jessawala, Shri Prabhu Dayal, Bakshi Jaishi Ram, and Lala Dholan Dass. Lala
Lajpat Rai was actively associated with the management of the Bank in its early
years.
1904: PNB established branches in Karachi and Peshawar.
1940: PNB absorbed Bhagwan Dass Bank, a scheduled bank located in Delhi
circle.
1947: Partition of India and Pakistan at Independence. PNB lost its premises in
Lahore, but continued to operate in Pakistan.
1951: PNB acquired the 39 branches of Bharat Bank (est. 1942); Bharat Bank
became Bharat Nidhi Ltd.
1961: PNB acquired Universal Bank of India.
1963: The Government of Burma nationalized PNB's branch in Rangoon
(Yangon).
September 1965: After the Indo-Pak war the government of Pakistan seized all the
offices in Pakistan of Indian banks, including PNB's head office, which may have
moved to Karachi. PNB also had one or more branches in East Pakistan
(Bangladesh).
1960s: PNB amalgamated Indo Commercial Bank (est. 1933) in a rescue.

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 1969: The Government of India (GOI) nationalized PNB and 13 other major
commercial banks, on July 19, 1969.
1976 or 1978: PNB opened a branch in London.
1986 The Reserve Bank of India required PNB to transfer its London branch to
State Bank of India after the branch was involved in a fraud scandal.
1986: PNB acquired Hindustan Commercial Bank (est. 1943) in a rescue. The
acquisition added Hindustan's 142 branches to PNB's network.
1993: PNB acquired New Bank of India, which the GOI had nationalized in 1980.
1998: PNB set up a representative office in Almaty, Kazakhstan.
2003: PNB took over Nedungadi Bank, the oldest private sector bank in Kerala.
Rao Bahadur T.M. Appu Nedungadi, author of Kundalatha, one of the earliest
novels in Malayalam, had established the bank in 1899. It was incorporated in
1913, and in 1965 had acquired selected assets and deposits of the Coimbatore
National Bank. At the time of the merger with PNB, Nedungadi Bank's shares had
zero value, with the result that its shareholders received no payment for their
shares.

PNB also opened a representative office in London.

2004: PNB established a branch in Kabul, Afghanistan.

PNB also opened a representative office in Shanghai.

PNB established an alliance with Everest Bank in Nepal that permits migrants to
transfer funds easily between India and Everest Bank's 12 branches in Nepal.
2005: PNB opened a representative office in Dubai.
2007: PNB established PNBIL - Punjab National Bank (International) - in the UK,
with two offices, one in London, and one in South Hall. Since then it has opened a
third branch in Leicester, and is planning a fourth in Birmingham. Gatin Gupta
became Chairmen of Punjab National Bank.
2008: PNB opened a branch in Hong Kong.
2009: PNB opened a representative office in Oslo, Norway.

ACHIEVEMENTS

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 Punjab National Bank announced its Q1FY2010 results on 29 July 2009,
delivering 62% y-o-y growth in net profits to Rs832 crore (Rs512cr),
substantially ahead of expectations on account of large treasury gains, apart
from healthy operating performance.

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

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

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

Operating expenses were higher than expected on account of Rs150 crore of

provisions for imminent wage hikes.

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

VISION AND MISSION

Vision

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 To evolve and position the bank as a world class, progressive, cost effective
and customer friendly institution providing comprehensive financial and
related services.
Integrating frontiers of technology and serving various segments of society
especially weaker section.
Commited to excellence in serving the public and also excelling in corporate
values

Mission

To provide excellent professional services and improve its position as a leader

in financial and related services.
Build and maintain a team of motivated workforce with high work ethos.
Use latest technology aimed at customer satisfaction and act as an effective
catalyst for socio economic development.

VALUES AND ETHICS

Bonding and Integrity

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

PRODUCTS AND SERVICES

Savings Fund Account - Total Freedom Salary Account, PNB Prudent Sweep, PNB
Vidyarthi SF Account, PNB Mitra SF

Account Current Account - PNB Vaibhav, PNB Gaurav, PNB Smart Roamer

Fixed 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

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Trust

Corporate Banking - Gold Card scheme for exporters, EXIM finance

Business Sector - PNB Karigar credit card, PNB Kushal Udhami, PNB Pragati Udhami,
PNB Vikas Udhami Apart from these, and the PNB also offers locker facilities, senior
citizens schemes, PPF schemes and various E-services.

AWARDS AND DISTINCTIONS

Ranked among top 50 companies by the leading financial daily,
Economic Times.
Ranked as 323rd biggest bank in the world by Bankers Almanac
(January 2006), London.
Earned 9th place among India's Most Trusted top 50 service brands in
Economic Times- A.C Nielson Survey.
Included in the top 1000 banks in the world according to The Banker,
London.
Golden Peacock Award for Excellence in Corporate Governance -
2005 by Institute of Directors.
FICCI's Rural Development Award for Excellence in Rural
Development 2005

ORGANIZATIONAL STRUCTURE

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 HEAD OFFICE
7, BHIKAJI CAMA PLACE, NEWDELHI-66

ZONAL OFFICES (25)

REGIONAL OFFICES (48)

BRANCHES (4525)

SWOT ANALYSIS

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Lets analyze SWOT in order to know as to where the company stands

2.7 SWOT ANALYSIS

STRENGTH

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

WEAKNESS

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

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 OPPORTUNITIES

Home to home banking services

Diversification towards other fields
Globalization

THREATS

Stiff competition from SBI and other private players.

INTRODUCTION TO TOPIC
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CUSTOMER SATISFACTION

Customer satisfaction refers to the extent to which customers are happy with the products
and services provided by a business.

Customer satisfaction levels can be measured using survey techniques and questionnaires

DEFINITIONS:
Definition 1: Customer satisfaction is equivalent to making sure that product and service
performance meets customer expectations.

Definition 2: Customer satisfaction is the perception of the customer that the outcome of
a business transaction is equal to or greater than his/her expectation.

Definition 3: Customer satisfaction occurs when acquisition of products and/or services

provides a minimum negative departure from expectations when compared with other
acquisitions.

Gaining high levels of customer satisfaction is very important to a business because

satisfaction customers are most likely to be loyal and to make repeat orders and to use a
wide range of services offered by a business
There are many factors which lead in high levels of customer satisfaction including.
Products and services which are customer focused and hence provide high levels of value
for money.

What is clear about customer satisfaction is that customers are most likely to appreciate
the goods and services that they buy if they are made to feel special. This occurs when
they feel that the products and services that they buy have been specially produced for
them or for people like them.

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BENEFITS OF CUSTOMER SATISFACTION
The importance of customer satisfaction and support is increasingly becoming a vital
business issue as organization realize the benefits of Customer Relationship Management
(CRM) for providing effective customer service. Professionals working within customer-
focused business or those running call centers or help desks, need to keep informed about
the latest customer satisfaction techniques for running a valuable customer service
function. From small customer service departments to large call centers, the importance
of developing a valued relationship with customers using CRM is essential to support
customer and long-term business growth.

What Do Customers Want?

Before we begin to create tools to measure the level of satisfaction, it is important to
develop a clear understanding of what exactly the customer wants. We need to know what
our customers expect from the products and services we provide.
Customer expectations have two types
Expressed
Implied

Expressed Customer Expectations are those requirements that are written down n the
contract and agreed upon by both parties for example, product specifications and delivery
requirements. Suppliers performance against these requirements is most of the items
directly measurable.

Implied Customer Expectations are not written or spoken but are the ones the customer
would expect the supplier to meet nevertheless. For example, a customer would expect
the service representative who calls on him to be knowledgeable and competent to solve a
problem on the spot.

There are many reasons why customer expectations are likely to change overtime.
Process improvements, advent of new technology, changes in customers priorities,
improved quality of service provided by competitors are just a few examples.

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The customer is always right. Suppliers job is to provide the customer what he/she
wants, when he/she wants it. Customer satisfaction is customers perception that a
supplier has met or exceeded their expectations.

WHAT CONSTITUTES SATISFACTION?

We cannot create customer satisfaction just by meeting customers requirements fully
because these have to be met in any case. However failing short is certain to create
dissatisfaction
Major Attributes of customer satisfaction in banking industry can be summarized
as:

Product quality
Premium Outflow
Return on Investment
Services
Responsiveness and ability to resolve complaints and reject reports.
Overall communication, accessibility and attitude.

WHAT ARE THE TOOLS?

Customer expectations can be identified using various methods such as:
Periodic contract reviews
Market research
Telephonic interviews
Personal visits
Warranty records
Informal discussions
Satisfaction surveys

Depending upon the customer base and available resources, we can choose a method that
is most effective in measuring the customers perceptions. The purpose of the exercise is

25
to identify priorities for improvements. We must develop a method or combination of
methods that helps to continually improve service.

CUSTOMER SATISFACTION SURVEYS

Formal survey has emerged as by far the best method of periodically the customer
satisfaction. The survey are not marketing tools but an informationgaining tool.
Enough homework needs to be before embarking on the actual survey. This includes:

Defining Objectives of the Survey

Design Survey approach
Develop questionnaires and forms
Administer Survey (Email, Telephone or Post)
Method of compiling data and analyzing the findings
Format of the report to present the findings

There is no point in asking irrelevant questions on a customer satisfaction

questionnaire. The basic purpose is to find out what we are doing right or wrong. Where
is the scope for improvement, where do we stand vis--vis other suppliers. How we can
serve the customer better?

A customer satisfaction measurement survey should at least identify the following

objectives:
Importance to customers (Customers priorities)
Customers perception of suppliers performance
Your performance relative to customers priorities.
Priorities for improvement

Survey forms should be easy to fill out with minimum amount of time and efforts on
customers part. They should be designed to actively encourage the customer to complete
the questions. Yet they must provide accurate data should also be sufficiently reliable for
management decision making. This can be achieved by incorporating objective type

26
questions where customer has to rate on scale of say 1 to 10. For repeated surveys, you
could provide the rating that was previously accorded by the customer. This works like a
reference point for the customer.

Space should always be provided for the customers own opinions this enables them to
state any additional requirements or report any shortcomings that are not covered by the
objective questions.

Normally, we deal various personnel at various levels in the customers organizationthe

buyer, user, receiving inspector, finance and purchase person etc. surveying a number of
respondents for each customer gives a complete perspective of customer satisfaction. It
may be necessary to device a different questionnaire for each of them.
Respondents must be provided a way to express the importance they attach to various
survey parameters. Respondents should be asked to give a weighting factor, again on a
rating scale of say, 1 to 10, for each requirement. This gives a better indication of relative
importance of each parameter towards overall customer satisfaction and makes it easier
for suppliers to prioritize their action plans by comparing the performance rating (scores)
with importance rating (weighing).

27
 OBJECTIVES OF THE STUDY

To have an insight into the attitudes and behaviors of customers.

To find out the differences among perceived service and expected service.
To produce an executive service report to upgrade service characteristics.
To understand consumers preferences.
To access the degree of satisfaction of the consumers

28
 CHAPTER 2
REVIEW OF LITERATURE

29
 REVIEW OF LITERATURE

Joseph M. et al (1999)- The study investigates role of technology on Australian banking

sector and 300 customers were surveyed. The findings suggested that except from
convenience/accuracy and efficiency e banking services did not match with importance rating
specified by customers.
Lassar, et al (2000)- The study compared two models, that is , SERVQUAL and
technical/functional quality model of technology using 65 bank customers using SERPERF
SCALE. The findings revealed that technical/functional quality model was better than
SERVQUAL because latter was lacking technical dimensions. 2 models were having distinct
and unique strength for measuring service quality aspects.
Bahia, K and J Nantel (2000)- The paper suggested an alternative scale for measuring
service quality in retail banking. The study developed a scale called as Banking Service
Quality Scale which contained factors like effectiveness and assurance, access, price,
tangibles, service portfolio and reliability. This model was found to be more reliable than
SERVQUAL
Jamal, A., Naser, K., 2002-The study examined key drivers of customer satisfaction using
167 customers and it was found that core and relational performances had impact on
customer satisfaction and there was negative relationship between customer expertise and
customer satisfaction
Sureshchandar et al(2002).- The study examined relationship between service quality and
customer satisfaction in Indian banking sector. These were found to be independent but
closely related. Both constructs vary significantly in core services ,human element,
systematization of service delivery, tangibles and social responsibility.
Gani A,Mushtaq Bhatt(2003)-The study is conducted to do a comparative study of service
quality of commercial banks and its dimensions in commercial banks. SERVQUAL is used
and sample size was 800 customers. The study found out that CITI bank and Standard
chartered bank are good in tangibility and in reliability also they are good. In responsiveness
parameter Indian banks are inferior to foreign banks. In Assurance and empathy Indian banks
are inferior.

30
Navdeep Aggarwal and Mohit Gupta (2003)- This study basically finds out the primary
dimensions and sub dimensions of service quality. Informal structured interviews are
conducted with branch managers and academicians to formulate a banking service quality
model. The study found out that service time and personal interactions are very important
along with ambience for service quality
Zhou, L( 2004)- The study analysed impact of service quality in banks on customer
satisfaction in chinas retail banking and it was found out that reliability and assurance were
the primary drivers of customer satisfaction. It was also found out that there were significant
variations in expectations and perceptions in customers
Arora S (2005)- This study analysed factors influencing customer satisfaction in public
sector, private sector and foreign banks in northern India. 300 customers were given
questionnaires which reveled that significant differences exist in customer satisfaction level
of customers in each group of banks regarding routine operation and situational and
interactive factors. Foreign banks were found to be the leaders in mechanization and
automation
Debashis and Mishra(2005)-The study analysed and measured customer satisfaction in
branch services provided by nationalized banks in northern India . 1200 customers were
given questionnaires and it was found out that computerization, accuracy in transactions,
attitude of staff and availability of staff influenced customer satisfaction. Least important
factor was promotion of the products and various schemes.
Mushtaq M Bhat (2005)- This study finds out service quality parameters in bank through
SERVQUAL and influence of demographic variables . The study was limited to SBI,PNB
,Jammu and Kashmir bank Citi bank and Standard Chartered Grind lays bank. Sample size
was 800 and study found out that foreign banks are better than Indian banks. SBI was found
to be relatively poor on reliability and responsiveness. Banks in Delhi were comparatively
better in service quality
Alka Sharma,Varsha Mehta(2005)-The study focuses on service quality of four leading
banks and their comparison.
Joshua A J, V Moli, P. Koshi (2005)- The study evaluated and compared service quality in
old and new banks using sample size of 480. The study found out that customers were
satisfied in reliability, empathy and price and for other parameters the difference between
expectations and perceptions were smaller than public sector banks

31
Mohammad et al(2005)- The study tries to develop a comprehensive model of banking
automated service quality taking into consideration unique attributes of each delivery channel
and other dimensions which influence service quality
Raul and Ahmed(2005)-The study investigated customer service in public sector banks in 3
districts in Assam and it was found that customers were dissatisfied with the management,
technology and interactive factors along with high service charges. Communication gap was
the root cause of poor service and service was different in rural and urban sectors
Sharma and Sharma( 2006)-The study analysed customer delight in urban consumer
banking. The study found out that customers were satisfied with loan facilities, bank
environment, routine work procedures, location ,interest rates etc and were dissatisfied with
loan formalities and promotion through media.
Dash et al(2007)- The study measured customer satisfaction through 5 service quality
dimensions in Noida and Ghaziabad and findings revealed that assurance was the most
important dimension of service quality followed by reliability and responsiveness. Tangibles
was found to be least important
Sharma S, et al (2007)-The study did a comparison of public and private banks with respect
to perceptions of customers regarding service quality. It was found out that service quality is
associated with satisfaction and there was significant difference between quality of services
provided by banks. Banks in smaller cities are far behind big cities in this regard
Tracey Dagger ,Jillian Sweeney (2007)- The study consists of qualitative research to
investigate the effect of consumption stage on service quality perceptions and then
development of hypothesis. The findings indicate the evidence that customers rely more
heavily on attributes that are search based in the initial stages of service experience and in
later stages consumption becomes important
Dr.Vannirajan&B.Anbazagan(2007)- The study tries to make an assessment of SERVPERF
scale in the Indian Retail banking sector by doing a survey in banks at Madhurai. The study
found that in public sector banks tangibles and assurance are most important and in private
sector banks reliability ,,responsiveness and tangibles are most important.
P K Gupta(2008)-Objective of this study was to find out the behavior of customers with
respect to internet banking vis--vis conventional banking. The study found out that internet
banking was found to be easier and speedier than conventional banking and trust, accuracy
and confidentiality were the most important factors here.

32
Ellaine Wallce&Leslie De Cheratatony(2009)-Study finds out the importance of ,assurance
and reliability, customer orientation teamwork etc in performance of . Also the study
highlights criticality of branch& employee teamwork for performance. Continuous
commitment and service recovery were also found important
Mohammed Siddique Khan,Siba Sankar Mahapatra(2009)-The study was to identify
important parameters affecting service quality in internet banking. Factor analysis of the data
collected finds 7 factors which included factors like reliability, access, user friendliness
privacy etc. Correlation analysis shows that a significant positive correlation exists between
factors..Also it was found out that business class differs from other classes in perception
Padhy P K and B N Swar(2009)- the paper investigated role of technology in banking and
its impact on perceived service quality in public, private and foreign banks in Orissa using a s
ample size of 300 customers. Foreign bank was found to be very close to expectations of
customers followed by ICICI and AXIS. Service quality in public sector banks was found to
be very low
Rod et al(2009)-The study focused on relationship between service quality, overall internet
banking service quality and customer satisfaction in New Zealand. The study found out that
online customer service quality and online information systems were significantly and
positively related to overall customer internet banking service quality. Overall internet
banking service quality and customer satisfaction were positively correlated
Sandip Khosh Hazra, Dr.Kailash Srivatava (2010)-The study was done to find out the
association between service quality, customer satisfaction ,loyalty and commitment.
SERVQUAL is used and the study finds out that in private banks dimensions of service
quality, assurance and reliability are significant for satisfaction of customers, loyalty and
commitment. The banks taken differed in these parameters.
Akiko Ueno(2010)- The paper talks about the importance of quality. The study finds out the
features that are fundamental in supporting service quality. The secondary research finds out
the human resource functions like recruitment, teamwork etc in maintain service quality.
Monica Bedi(2010)-The study investigates relationship between service quality, customer
satisfaction and behavioral intentions. The findings also indicated the importance of service
quality. The study also found out that banks differed in the service quality parameters.

33
Fulbag Singh, Davinder Kaur(2010-11)- The study combines all literature review done in
service quality And related areas in banking till 2010. It contains the works of Cronin&
Taylor, Bahia and Nantel and others on this area
Dr Ravichandran et al(2010)- The paper analyses existing study and tries to understand
socio demographic and rational profile of public retail banking consumers. It also finds out
the importance of service quality dimensions to predict the multidimensional model of
behavioral intentions among public sector consumers in India. Loyalty was found to be
influenced by operating hours, modern equipments, error free records etc. Service quality
parameters like tangibility, responsiveness and empathy dimensions were also found to be
very important.
Davood Feiz et al(2010)-The study uses hypothesis to find out service quality in Iran
railways. It was found out that perceived service was found to be within zone of tolerance
and service was satisfactory. The difference between ideal level and current level was
significant. There was significant relationship between service adequacy variables and
perceived value. The study in nutshell gives an image of service quality
Sachin Mittal&Rajnish Jain(2010)-This paper is basically a literature review of banking
industry and effect of IT based services on customer satisfaction. The study highlights
customer satisfaction levels among young customers in banking industry. A survey indicates
the gaps between customers expectations and perception with respect to IT based banking
services. Findings indicated need to improve the IT based services for enhancing customer
satisfaction.
H.Emari et al(2011)- The main objective of this research was to determine the dimensions of
service quality in the banking industry of Iran. For this the study empirically examined the
European perspective (i.e., Gronrooss model) suggesting that service quality consists of
three dimensions, technical, functional and image. The results from a banking service sample
revealed that the overall service quality is identified more by a consumers perception of
technical quality than functional quality
Kumbhar, Vijay (2011)- It examined the relationship between the demographics and
customers satisfaction in internet banking,. It also found out relationship between service
quality and customers satisfaction as well as satisfaction in internet banking service provided
by the public sector bank and private sector banks. The study found out that overall
satisfaction of employees, businessmen and professionals are higher in internet banking

34
service. Also it was found that there is significant difference in the customers perception in
internet banking services provided by the public and privates sector banks.
Kailash M (2012)- The paper compares public and private sector banks in Vijayawada city
using SERVQUAL model. The findings revealed that private sector banks have good services
to customers and they retained customers by providing better facilities. The study finds out
importance of new products and services for banks for retaining customers.

CHAPTER 3
RESEARCH METHODOLOGY

35
 RESEARCH METHODOLOGY

STATEMENT OF THE PROBLEM

This Study will help us to understand the consumers satisfaction about banking services
and products. This study will help banks to understand, how a consumer selects,
organizes and interprets the Quality of service and product offered by banks.
The market is more aware and realistic about investment and returns from financial
products. In this background this study tries to analyze the customer satisfaction towards
banking services in general and PNB in particular.

NEED FOR THE STUDY

The deeper the company understands of consumers needs and

satisfaction, the earlier the product or service is introduced ahead of
competition, the greater the expected contribution margin. Hence the study
is very important.
This study will help companies to customize the service and product,
according to the consumers need.
This study will also help the companies to understand the experience and
expectations of the existing customers.

SCOPE OF THE STUDY

This study is limited to the consumers with in New Delhi city. The study will be able to
reveal the preferences, needs, satisfaction of the customers regarding the banking
services, It also help banks to know whether the existing products or services the are
offering are really satisfying the customers needs.

36
REASERCH METHODOLOGY

A descriptive study tries to discover answers to the questions who, what, when, where,
and, sometimes, how. The researcher attempts to describe or define a subject, often by
creating a profile of a group of problems, people, or events.
Such studies may involve the collection of data and the creation of a distribution of the
number of times the researcher observes a single event or characteristic (the research
variable), or they may involve relating the interaction of two or more variables.
Organizations that maintain databases of their employees, customers, and suppliers
already have significant data to conduct descriptive studies using internal information.
Yet many firms that have such data files do not mine them regularly for the decision-
making insight they might provide.

This descriptive study is popular in business research because of its versatility across
disciplines. In for-profit, not-for-profit and government organizations, descriptive
investigations have a broad appeal to the administrator and policy analyst for planning,
monitoring, and evaluating. In this context, how questions address issues such as
quantity, cost, efficiency, effectiveness, and adequacy.
Descriptive studies may or may not have the potential for drawing powerful inferences.
A descriptive study, however, does not explain why an event has occurred or why the
variables interact the way they do.

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

37
SAMPLE SIZE
Sample size denotes the number of elements selected for the study. For the present study,
100 respondents were selected at random. All the 100 respondents were the customers of
different branches of PNB.

SAMPLING METHOD
A sample is a representative part of the population. In sampling technique, information is
collected only from a representative part of the universe and the conclusions are drawn on
that basis for the entire universe.
A convenience sampling technique was used to collect data from the respondents.

METHOD OF DATA COLLECTION

To know the response, the researcher used questionnaire method. It has been designed as
a primary research instrument. Questionnaires were distributed to respondents and they
were asked to answer the questions given in the questionnaire.

The questionnaires were used as an instrumentation technique, because it is an important

method of data collection. The success of the questionnaire method in collecting the
information depends largely on proper drafting. So in the present study questions were
arranged and interconnected logically. The structured questionnaire will reduce both
interviewers and interpreters bias.

Further, coding and analysis was done for each questions response to reach into findings,
suggestions and finally to the conclusion about the topic.

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

38
PRIMARY DATA
Primary data are those collected by the investigator himself for the first time and thus
they are original in character, they are collected for a particular purpose.
A well-structured questionnaire was personally administrated to the selected sample to
collect the primary data.

SECONDARY DATA
Secondary data are those, which have already been collected by some other persons for
their purpose and published. Secondary data are usually in the shape of finished products.

Two types of secondary data were collected for the preparation of the project work:
Internal Data was generated from companys brochures, manuals and annual reports
External Data, on the other hand, was generated from magazines, research books,
intranet and internet (websites).

LIMITATIONS OF THE STUDY

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

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

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

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

39
4. It was difficult to find respondents as they were busy in their schedule, and collection
of data was very difficult. Therefore, the study had to be carried out based on the
availability of respondents.

40
 CHAPTER 4
DATA ANALYSIS &
INTERPRETATION

41
 DATA ANALYSIS & INTERPRETATION
TABLE 1
SHARE OF DIFFERENT TYPES OF ACCOUNTS

SL. No. NATURE OF NUMBER OF PERCENTAGE OF

ACCOUNTS RESPONDENTS RESPONDENTS

1. Saving A/Cs 78 78%

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

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

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

TABLE 2

42
 SATISFACTION OF RESPONDENTS WITH SERVICES OFFERED BY PNB
BRANCH

SL. No. RESPONSE NUMBER OF PERCENTAGE OF

RESPONDENTS RESPONDENTS
1. Satisfied 89 89%
2. Not satisfied 11 11%
TOTAL 100 100 %

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

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

TABLE 3

43
 RATINGS OF THE SERVICES OFFERED BY THE RESPONDENTS LIFE
INSURANCE COMPANY

NUMBER OF PERCENTAGE OF
SL. No. RATINGS
RESPONDENTS RESPONDENTS
1. EXCELLENT 05 5%
2. VERY GOOD 09 9%
3. GOOD 76 76%
4. AVERAGE 06 6%
5. POOR 04 4%
TOTAL 100 100 %

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

TABLE SHOWING MOTIVE BEHIND THE SELECTING PNB

44
 SL.NO ATTRIBUTE SCORE RANK
1. Brand name 56 1
2. Customer service 30 2
3. Interest 12 3
4. Others 2 4

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

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

TABLE 5

CONSUMERS WILLINGNESS TO RECOMMEND THEIR LIFE INSURANCE

COMPANY TO OTHERS

45
 SL. No. RESPONSES NUMBER OF PERCENTAGE OF
RESPONDENTS RESPONDENTS
1. Recommended 92 92%
2. Not recommended 08 8%
TOTAL 100 100 %

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

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

TABLE 6

CONSUMERS WILLINGNESS TO SHIFT THEIR A/Cs TO OTHER BANKS

SL. No. RESPONSES NUMBER OF PERCENTAGE OF

RESPONDENTS RESPONDENTS
1. Shift 8 8%

46
 2. Doesnt shift 92 92%
TOTAL 100 100 %

Analysis: From this table it can be noted that the majority of consumers (92%) doesnt
like to shift their A/Cs to other banks.

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

47
 CHAPTER 5
FINDINGS, SUGGESTION &
CONCLUSION

FINDINGS

48
 This means most of the respondents are having Saving A/Cs which means the
bank deposits are enriching as Saving A/Cs share is most.
Most of the respondents are satisfied with the service offered by SBI . Presently
the bank offers varieties of services and the customers are getting a good rate of
return from their deposits. Customers are getting good service from the bank.
Service offered by the bank is improving day by day. Returns consumers are
getting are also attractive. Majority of the customers rates good, very good and
excellent because of the customer service offered by the bank. Banks are
providing a good service to the customers due to increased competition in the
market. This may be the reason for more satisfaction
This purely shows that people are now looking forward for better customer
service in addition to the brand name in which they are investing and the returns
they are getting.
Since the competition has increased in the field of benefits and service of banking.
So customers are getting good service, so that they are willing to recommend their
bank services to others.
The reason can be increasing customer satisfaction and quality services offered by
the bank.

49
 SUGGESTIONS & RECOMMENDATIONS

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

Due to the intense competition in the financial market, PNB should adopt better
strategies to attract more customers.
Return on investment company reputation and premium outflow are most
preferred attributes that are expected by the respondents. Hence greater focus
should be given to these attributes.

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

PNB should ask for their consumer feedback to know whether the consumers are
really satisfied or dissatisfied with the service and product of the bank. If they are
dissatisfied, then the reasons for dissatisfaction should be found out and should be
corrected in future.

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

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

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

50
 CONCLUSION

The project entitled A STUDY TO UNDERSTAND THE CUSTOMER

SATISFACTION AT PNB has helped me in studying satisfaction about services and
products offered to consumers.

Since the opening up of the banking sector, private banks are in the fray each one trying
to cover more market share than the other.

Yet, PNB is far behind SBI. PNB must also be alert what with Private Banks (ICICI,
HDFC) breathing down its neck.

I am sure the bank will find my findings relevant and I sincerely hope it uses my
suggestions enlisted, which I hope will take them miles ahead of competition.

In short, I would like to say that the very act of the concerned management at PNB in
giving me the job of critically examining consumer satisfaction towards financial
products and services of the company is a step in their continual mission of making all
round improvements as a means of progress.

I am sure the bank has a very bright future to look forward to and will be a trailblazer in
its own right.

51
 REFERENCES

There was an immense need and flow of the information. While conducting the analysis
as well as while writing the report, which was gathered through various sources
mentioned below: -

Internet

http://pnbindia.com last accessed on 2/08/2009

http://moneymarket.com last accessed on 7/08/2009

Other Printed Literature such as

PNB Product Manual Guide

Annual General Reports of PNB (2008 2009)
PNB Performance Highlights 2008 & 2009

Books
Customer satisfaction measurement simplified
- Jeffrey Gitomer
Why satisfied customers defect Harvard Business Review nov-dec 1995
Customer Satisfaction measurement & management : using the voice of
customer
- Naumann Giel

52
 QUESTIONNAIRE

Name:

Phone off: Phone Res.

Occupation

Office Address

Monthly Income: 5000 10000 10000 20000

And above

Type of Banks you are holding saving account with-

1. Nationalized / co-operative
2. Private
3. Multinational

long have you been banking with them?

1. Less than 1 year

53
 2. 1-3 year
3. 4 year and above

How would you rate your experience with your current bankers?

1. Excellent
2. Good
3. Fair
4. Poor

Do you presently hold a credit Card?

1. Yes
2. No

Does your bank charges you on the transaction that you do on the
credit Card?

1. Yes
2. No

Which of these factors influenced your decision to open an account with

your current bank?
1. Facilities provided by the Bank
2. Recommendation by friend / relatives
3. Advertisement
4. Brand

54
5. ATMs
6. Branch timing

55