NET BANKING SERVICES OF PUNJAB NATIONAL BANK

RELEVANCE:-

Retail banking provides financial services for individuals and families. The three most
important functions are credit, deposit, and money management. They are a component
of commercial banking.

First, retail banks offer consumers credit to purchase homes, cars, and furniture. These
include mortgages, auto loans, and credit cards. The resulting consumer
spending drives almost 70 percent of the U.S. economy. They provide
extra liquidity to the economy this way. Credit allows people to spend future earnings
now. Retail banks also offer small business loans to entrepreneurs. These small
companies create up to 65 percent of all new jobs as they grow
Origin
Punjab under the British especially after annexation in 1849 witnessed a period of rapid
development giving rise to a new educated class fired with a desire for freedom from the yoke of
slavery. Amongst the cherished desires of this new class was also an overriding ambition to start
a Swadeshi Bank with Indian Capital and management representing all sections of the Indian
community. The idea was first mooted by Rai Mool Raj of Arya Samaj who, as reported by Lala
Lajpat Rai, had long cherished the idea that Indians should have a national bank of their own. He
felt keenly "the fact that the Indian capital was being used to run English banks and companies, the
profits accruing from which went entirely to the Britishers whilst Indians had to contend
themselves with a small interest on their own capital".
At the instance of Rai Mool Raj, Lala Lajpat Rai sent round a circular to selected friends insisting
on an Indian Joint Stock Bank as the first special step in constructive Swadeshi. Lala Harkrishan
Lal who had returned from England with ideas regarding commerce and industry, was eager to
give them practical shape.
`PNB was born on May 19, 1894. The founding board was drawn from different parts of India
professing different faiths and a varied back-ground with, however, the common objective of
providing country with a truly national bank which would further the economic interest of the
country.
The Bank opened for business on 12 April, 1895. The first Board of 7 Directors comprised of Sardar
Dayal Singh Majithia, who was also the founder of Dayal Singh College and the Tribune; Lala
Lalchand one of the founders of DAV College and President of its Management Society; Kali
Prosanna Roy, eminent Bengali pleader who was also the Chairman of the Reception committee of
the Indian National Congress at its Lahore session in 1900; Lala Harkishan Lal who became widely
known as the first industrialist of Punjab; EC Jessawala, a well known Parsi merchant and partner
of Jamshedji & Co. of Lahore; Lala Prabhu Dayal, a leading Rais, merchant and philanthropist of
Multan; Bakshi Jaishi Ram, an eminent Civil Lawyer of Lahore; and Lala Dholan Dass, a great
banker, merchant and Rais of Amritsar. Thus a Bengali, Parsi, a Sikh and a few Hindus joined hands
in a purely national and cosmopolitan spirit to found this Bank which opened its doors to the public
on 12th of April 1895. They went about it with a Missionary Zeal. Sh. Dayal Singh Majithia was the
first Chairman, Lala Harkishan Lal, the first secretary to the Board and Shri Bulaki Ram Shastri
Barrister at Lahore, was appointed Manager.
A Maiden Dividend of 4% was declared after only 7 months of operation. Lala Lajpat Rai was the
first to open an account with the bank which was housed in the building opposite the Arya Samaj
Mandir in Anarkali in Lahore. His younger brother joined the Bank as a Manager. Authorised total
capital of the Bank was Rs. 2 lakhs, the working capital was Rs. 20000. It had total staff strength of
nine and the total monthly salary amounted to Rs. 320.
The first branch outside Lahore was opened in Rawalpindi in 1900. The Bank made slow, but
steady progress in the first decade of its existence. Lala Lajpat Rai joined the Board of Directors
soon after. in 1913, the banking industry in India was hit by a severe crisis following the failure of
the Peoples Bank of India founded by Lala Harkishan Lal. As many as 78 banks failed during this
crisis. Punjab National Bank survived. Mr. JH Maynard, the then Financial Commissioner, Punjab,
remarked...."Your Bank survived...no doubt due to good management". It spoke volumes for the
measure of confidence reposed by the public in the Bank`s management.
The years 1926 to 1936 were turbulent and loss ridden ones for the banking industry the world
over. The 1929 Wall Street crash plunged the world into a severe economic crisis.
It was during this period that the Jalianwala Bagh Committee account was opened in the Bank,
which in the decade that followed, was operated by Mahatma Gandhi and Pandit Jawaharlal Nehru.
The five years from 1941 to 1946 were ones of unprecedented growth. From a modest base of 71,
the number of branches increased to 278. Deposits grew from Rs. 10 crores to Rs. 62 crores. On
March 31, 1947, the Bank officials decided to leave Lahore and transfer the registered office of the
Bank to Delhi and permission for transfer was obtained from the Lahore High Court on June 20,
1947.
PNB was then housed in the precincts of Sreeniwas in the salubrious Civil Lines, Delhi. Many a staff
member fell victim to the widespread riots in the discharge of their duties. The conditions
deteriorated further. The Bank was forced to close 92 offices in West Pakistan constituting 33
percent of the total number and having 40% of the total deposits. The Bank, however, continued
to maintain a few caretaker branches.
The Bank then embarked on its task of rehabilitating the displaced account holders. The migrants
from Pakistan were repaid their deposits based upon whatever evidence they could produce. Such
gestures cemented their trusts in the bank and PNB became a symbol of Trust and a name you can
bank upon. Surplus staff posed a big problem. Fast expansion became a priority. The policy paid
rich dividends by opening up an era of phenomenal growth.
In 1951, the Bank took over the assets and liabilities of Bharat Bank Ltd. and became the second
largest bank in the private sector. In 1962, it amalgamated the Indo-Commercial Bank with it. From
its dwindled deposits of Rs. 43 crores in 1949 it rose to cross the Rs. 355 crores mark by the July
1969. Its number of offices had increased to 569 and advances from Rs. 19 crores in 1949 to Rs.
243 crores by July 1969 when it was nationalised.
Since inception in 1895, PNB has always been a "People`s bank" serving millions of people
throughout the country and also had the proud distinction of serving great national leaders like
Sarvshri Jawahar Lal Nehru, Gobind Ballabh Pant, Lal Bahadur Shastri, Rafi Ahmed Kidwai, Smt.
Indira Gandhi etc. amongst other who banked with us.
Punjab Keshari Lala Lajpat Rai (Saluting The Spirit Of Our Founding Father)
The Life And Times Of Lala Lajpat Rai
There are few leaders of the pre-independence era who, after having

plunged themselves into the political struggle, continued to take an active interest in social,
cultural and educational work. Lala Lajpat Rai was one of such leaders. Born on 28th January, 1865
at a small village, Dhudike in the Ferozepur district of Punjab, he belonged to the Agarwal Baniya
caste and it was perhaps because of this, in addition to taking part in social and political life of the
country, he took keen interest in industrial and financial matter also. His father was a teacher of
Persian and Urdu in a government school.
Having passed the final examination in Law from Punjab University, he started his practice in1883,
when he was barely 18 years old. Endowed with a rich legacy of moral and intellectual background,
Lala Lajpat Rai had benefit of education in the practical rationalism of western science combined
with the religious purity and moral elevation of Eastern literature that put on him the hallmark of
true culture. While sympathizing with and aiding every movement made for progress, Lala Lajpat
Rai identified himself very closely with Arya Samaj, in which he found ample scope for the exercise
of his patriotism, philanthropy and religious zeal.
Having qualified as a pleader, Lala Lajpat Rai started practice at Hissar and soon became a leading
lawyer of the district. He organized the Arya Samaj there and put it on proper lines. In 1892, he
transferred his practice to the wider field at Lahore.Education, both secular and religious, was in
Lala Lajpat Rai’s view an important factor in national development. He took part in the foundation
of the D.A.V. College at Lahore.
Lalaji And Politics
Lala Lajpat Rai always felt drawn towards politics. It was in 1888 that he joined the Indian National
Congress when it met at Allahabad under the presidency of Mr. G. Yule. In 1905, the Indian National
Congress Committee having recognized in him an austere, sincere and selfless devoted worker
selected him as one of its delegates to place before the British, the political grievances of the Indian
people. He met the expenses of his trip from his own pocket. He along with Gokhale carried on the
political campaign in various parts of England and brought home to the mind of the British, the
evils of an unsympathetic and bureaucratic government under which India was labouring and
pleaded in eloquent language, adding facts and figures in supporting their contention, cause of the
half starving and half dying people of India. Lala Lajpat Rai created an impression on the English
Populace. After his return from England, he was busy devising and organizing ways and means for
political advancement and industrial emancipation of the country.
The movement of “Swadeshi” was in the offing and he put his heart and soul into it. He preached
the message of Swadeshi to the people of Punjab and made it very popular. This naturally enraged
the bureaucracy and he came to be regarded as a revolutionary by the Britishers and the Anglo-
Indian press. He was openly dubbed as a Revolutionary and an instigator of the armed forces.
The Jalianwala Bagh tragedy and the Government`s denial to censure the conduct of its officers
made him a complete non cooperator. He lost his faith in the British and threw himself whole
heartedly into the non-cooperation movement.In 1925, he joined the Swaraj Party and became its
deputy leader. He took active part in the deliberations of the debates of the Assembly. It was he,
who moved the resolution for the Boycott of the Simon Commission in the Assembly. It was while
leading the boycott procession at Lahore on the 30th October, 1928 that he received lathi blows
on his chest which ultimately brought about his death on the 17th November, 1928.
Lala Lajpat Rai And PNB
Lalaji was keenly concerned with the fact that though Indian capital was being used to run English
Banks and companies, the profits went entirely to the British, while Indians had to contend
themselves with a small interest on their capital. He echoed this sentiment in one of his writing
while concurring with Rai Mul Raj of Arya Samaj who had long cherished the idea that Indians
should have a National Bank of their own. At the instance of Rai Mul Raj, Lala Lajpat Rai sent a
circular to selected friends insisting on an Indian joint stock Bank as the first step in constructive
Swadeshi and the response was satisfactory After filing and registering the memorandum and
Articles of Association on 19 May, 1894, the bank was incorporated under Act VI of the 1882 Indian
Companies Act. The prospectus of the bank was published in the Tribune, and the Urdu Akhbar-e-
Am and Paisa Akhbar. On 23rd May, 1894, the founders met at the Lahore residence of Sh. Dyal
Singh Majithia, the first Chairman of PNB, and resolved to go ahead with the scheme. They decided
to hire a house in the famous Anarkali Bazar of Lahore opposite the post office and near well known
stores of Rama Brothers.On 12th April 1895, the Bank opened for business, a day before the great
Punjab festival of Baishakhi. The essence of the Bank’s culture was clear at this first meeting itself.
The fourteen original shareholders and seven directors took only a modest number of shares; the
control of the Bank was to lie with the large, dispersed shareholders, a purely professional
approach that was as uncommon then as it is today.
1. INTRODUCTION 1.1 Background Study : The Internet banking is changing the
banking industry and is having the major effects on banking relationships. Even
the Morgan Stanley Dean Witter Internet research emphasized that Web is more
important for retail financial services than for many other industries. Internet
banking involves use of Internet for delivery of banking products & services. It
falls into four main categories, from Level 1 - minimum functionality sites that offer
only access to deposit account data - to Level 4 sites - highly sophisticated
offerings enabling integrated sales of additional products and access to other
financial services - such as investment and insurance. In other words a
successful Internet Banking solution offers - • Exceptional rates on Savings, CDs,
and IRAs • Checking with no monthly fee, free bill payment and rebates on ATM
surcharges • Credit cards with low rates • Easy online applications for all
accounts, including personal loans and mortgages • 24 hour account access •
Quality customer service with personal attention. 1.1.1 Drivers Of Change :
2. 6. Advantages previously held by large financial institutions have shrunk
considerably. The Internet has leveled the playing field and afforded open access
to customers in the global market place. Internet Banking is a cost effective
delivery channel for financial institutions. Consumers are embracing the many
benefits of Internet Banking. Access to one's accounts at anytime and from any
location via the World Wide Web is a convenience unknown a short time ago.
Thus, a bank's Internet presence transforms from 'brouchreware' status to
'Internet banking' status once the bank goes through a technology integration
effort to enable the customer to access information about his or her specific
account relationship. The six primary drivers of Internet Banking includes, in
order of primacy are : • Improve customer access • Facilitate the offering of more
services • Increase customer loyalty • Attract new customers • Provide services
offered by competitors • Reduce customer attrition. 1.1.2 Indian Banks on Web :
The banking industry in India is facing unprecedented competition from non-
traditional banking institutions, which now offer banking and financial services
over the Internet. The deregulation of the banking industry coupled with the
emergence of new technologies, are enabling new competitors to enter the
financial services market quickly and efficiently. Indian banks are going for the
retail banking in a big way. However , much is still to be achieved. This study
which was conducted by students of IIML shows some interesting facts :
3. 7. • Throughout the country, the Internet Banking is in the nascent stage of
development (only 50 banks are offering varied kind of Internet banking services).
• In general, these Internet sites offer only the most basic services. 55% are so
called 'entry level' sites, offering little more than company information and basic
marketing materials. Only 8% offer 'advanced transactions' such as online funds
transfer ,transactions & cash management services. • Foreign & Private Banks
are much advanced in terms of the number of sites & their level of development.
1.1.3 Emerging Challenges : Information technology analyst firm, the Meta
Group, recently reported that "financial institutions who don't offer home banking
by the year 2000 will become marginalized." By the year of 2002, a large
sophisticated and highly competitive Internet Banking Market will develop which
will be driven by • Demand side pressure due to increasing access to low cost
electronic services. • Emergence of Open standards for banking functionality. •
Growing customer awareness and need of transparency. • Global players in the
fray. • Close integration of bank services with web based E-commerce or even
disintermediation of services through direct electronic payments (E-Cash) • More
convenient international transactions due to the fact that the Internet along with
general deregulation trends eliminates geographic boundaries.
4. 8. 1.1.4 Main Concerns In Internet Banking : In a survey conducted by the Online
Banking Association , member institutions rated security as the most important
issue of Online banking. There is a dual requirement to protect customer's
privacy and protect against fraud. Banking Securely : Online banking via the
World Wide Web provides an overview of Internet commerce and how one
 company secure banking for its financial institution clients and their customers.
Some basic information on the transmission of confidential data is presented in
Security and Encryption on the Web. PC Magazine Online also offer a primer :
How Encryption Works. A multilayered security architecture comprising firewalls ,
filtering routers, encryption and digital certification ensure that your account
information is protected from unauthorised access : • Firewalls and filtering
routers ensure that only the legitimate Internet users are allowed to access the
system. • Encryption techniques used by the bank (including the sophisticated
public key encryption) would ensure that privacy of data flowing between the
browser and the Infinity system is protected. • Digital certification procedures
provide the assurance that the data you receive is from the Infinity system. 1.1.5
Current Scenario : The Indian has finally worked up to the competitive dynamics
of new Indian market and is addressing the relevant issues take on the
multifarious challenges of globalization. Banks that employ IT solutions are
perceived to be futuristic and proactive players capable of meeting the
multifarious requirements of large customer base. Private banks have been fast
on the uptake and are reorienting their strategies using the Internet as a medium.
The India banking has come from a long from being a sleepy business institution
to a highly proactive and dynamic entity this transformation has been largely
brought by the large doses of liberalization and economic reforms that allowed
exploring new business opportunities rather than generating revenues from
conventional streams. The Indian industry has confidently hit the growth trial that
pick in activity is best reflected in the banking sector which after all is as candid a
mirror of a country's economy as you could ever find. Most of the Indian
5. 9. Financial intermediaries have been keeping pace with the deepening market
economy , riding the opportunity that come along with reforms even as they brace
themselves for increased competition both foreign and private by strengthening
prudential norms and leveraging technology to ensure that growth engine hums
smoothly along the essential function of a bank is to provide services related to
the storing value of value and the extending credit. The evolution of banking
dates back to the earliest writing , and continues in the present where a bank is a
financial institution that provides banking and other financial services. Currently
the term bank is generally understood an institution that holds a banking license.
Banking licenses are granted by financial supervision authorities and provide
rights to conduct the most fundamental banking services such as accepting
deposits and making loans. There are also financial institutions that provide
certain banking services without meeting the legal definition of a bank ,a so called
non-bank. Banks are a subset of the financial services industry. The word bank is
derived from the italian banca, which is derived from German and means bench.
The terms bankrupt and "broke" are similarly derived from banca rotta, which
refers to an out of business bank, having its bench physically broken. Money
lenders in Nothern Italy originally did business in open areas , or big rooms, with
each lender working from his own bench or table. Typically, a bank generates
profits from transaction fees on financial services or the interest spread on
resources it holds in trust for clients while paying theme interest on the asset.
Services typically offered by the banks - Although the type of services offered by
a bank depends upon the type of bank and the country, services provided usually
include : • Directly take deposits from the general public and issue checking and
saving accounts. • Lend out money to companies and individuals (see money
lender) • Cash checks. • Facilitate money transactions such as wire transfers and
cashier's checks. • Issue credit cards, ATM, and debit cards and online banking. •
Storage of valuables , particularly in a safe deposit box. 1.1.6 Technology In
Banking :
6. 10. • Technology will bring fundamental shift in functioning of banks. It would not
only help them bring improvements in their internal functioning but also enable
them to provide better customer service. Technology will break all boundaries
and encourage cross border banking business. Banks would have to undertake
 extensive Business Process Re-Engineering and tackle issues like a) how best to
deliver products and services to customers. b) designing an appropriate
organizational model to fully capture the benefits of technology and business
process changes brought about. c) how to exploit technology for deriving
economies of scale and how to create cost efficiencies, and d) how to create a
customer - centric operation model. • Entry of ATMs has changed the profile of
front offices in bank branches. Customers no longer need to visit branches for
their day to day banking transactions like cash deposits, withdrawals ,cheque
collection , balance enquiry etc. E- banking and Internet banking have opened
new avenues in "convenience banking". • Technology solutions would make flow
of information much faster, more accurate and enable quicker analysis of data
received. This would make the decision making process faster and more efficient.
For the Banks, this would also enable development of appraisal and monitoring
tools which would make credit management much more effective. The result
would be a definite reduction in transaction costs, the benefits of which would be
shared between banks and customers. • One area where the banking system can
reduce the investment costs in technology applications is by sharing of facilities.
We are already seeing banks coming together to share ATM Networks. Similarly,
in the coming years , we expect to see banks and FIs coming together to share
facilities in the area of payment and settlement, back office processing, data
warehousing , etc. While dealing with technology , banks will have to deal with
attendant operational risks. This would be a critical area the Bank management
will have to deal with in future. • Payment Settlement system is the backbone of
any financial market place. The present Payment and Settlement systems such
as Structured Financial Messaging System( SFMS) , Centralised Funds
Management System(CFMS) , Centralised Funds Transfer System (CFTS) and
Real Time Gross Settlement System( RTGS) will undergo
7. 11. further fine- tuning to meet international standards. Needless to add,
necessary security checks and controls will have to be in place. In this regard,
Institutions such as IDRBT will have a greater role to play. 1.1.7 Industry Profile :
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 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 regular policy for Indian banks since 1969 has paid rich dividends
with the nationalization of 14 major private banks of India. Not a long ago, an
account holder had to wait for hours at the bank countries for getting a draft or for
withdrawing his own money. Today,, he has a choice. Gone are days when most
efficient bank transferred money from one branch to other in two days. Now it is
simple as instant messaging or dial a pizza. Money have 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. • Nationalisation 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. Phase 1
8. 12. 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 Banks. These three banks were
amalgamated in 1920 and Imperial Bank of India was established which started
as private shareholders banks, mostly European 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. Phase 2
Government took major steps in this Indian Banking Sector Reform after
independence. In 1955 , it nationalised Imperial bank of India with extensive
banking facilities on a large scale especially in rural and semi urban area. 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 nationalised in 1960
on 19th July,1969. 14 major commercial banks in the country was nationalised.
This step brought 80% of the banking segment in India under Government
ownership.
9. 13. Phase 3 This phase has introduced many more products and facilities in the
banking sector in its reforms measure, In 1991, 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. 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. 1.2 Problem Identified : Even though the technology
updation has been adopted in Internet banking, still the customers are unaware
about the updation of technology and the reason for the technology updation.
Some of the customers are not using the branch networks, and ATM facilities.
Only educated people are aware about the internet banking facilities and the
procedures to access their account online. Even among the educated people,
some of them are still feeling insecure about performing the transactions through
net banking facilities provided by the banks. The bank doesn't take any actions to
make aware their customers to use the internet banking facility or to increase the
satisfaction level among their customers.
10. 14. 1.3 Need Of Study : This study analyses about the need for internet banking
facility offered by banks to their customers. The specific online facilities include
fund transfer, online bill payment, balance enquiry and the most of the other
activities related to the customer's bank account. These were implemented to
overcome the problems associated with traditional banking system, which
includes time delay in transactions, need of physical presence of customers, and
more paper work for bankers and so on. This study has been mainly carried out
to intimate the changes, updations in internet banking facility. This study makes
contributions by showing how the current internet banking facilities contribute in
increasing the efficiency of the banking operations and also focuses on the
acceptance level among the Customers for Internet banking. Hence, it is
necessary to conduct a study to know whether the implementation of Internet
Banking has served the purpose or not. 1.4 Objectives Of Study : 1.4.1 Primary
Objectives • To study the effectiveness of the Internet Banking In India. 1.4.2
Secondary Objectives • To study on current internet banking facilities provided by
banks. • To study the usage level of the Internet banking facilities by customers.
11. 15. • To study the improvement of efficiency of banking operations obtained by
internet banking. • To notify the changes needed from customer view in existing
internet banking facilities. CHAPTER 2 - LITERATURE SURVEY 2.1 Review Of
Literature Online banking is the latest in the series of technological wonders of
the recent past. ATMs, Tele Banking , Internet Banking , Credit Cards and Debit
Cards have emerged as effective delivery channels for traditional banking
products. Internet or Electronic or online baking is the newest delivery channel to
be offered by retail banks in many developed countries, and there is a wide
agreement that this channel will have a significant impact on the market. Banks
know that the internet opens up new horizons for them and moves them from
local to global frontiers. Online banking refers to systems that enable bank
customers to get access to their accounts and general information on bank
products and services through the use of bank's websites, without the
intervention or inconvenience of sending letters, faxes , original signatures and
telephone confirmations. In its simplest form, electronic banking may mean the
provision of information about the bank and its products via a page on the
internet. It is the types of services through which bank customers can request
information and carry out most retail banking services such as balance reporting,
inter-account transfers, bill payment, etc via a telecommunication network without
leaving their homes or organizations. In essence, it is an electronic consumer
interface and an alternative channel of distributions. Online banking has been
regarded as the most important way to reduce cost and maintain or enhance
services for consumers. It provides universal connection from any location
worldwide and its universally accessible from any internet linked computer. It is a
process of innovation whereby customers handle their own banking transactions
without visiting bank tellers. 2.1 E- Banking In India Information technology is
considered as the key driver for the changes taking place around the world.
According to Heikki, the transformation from the traditional banking to e-banking
has
12. 16. been a 'leap' change. The evolution of e-banking started from the use of
Automatic Teller machines( ATMs) and telephone banking (tele-banking), direct
bill payment, electronic fund transfer and the revolutionary online banking. The
future of electronic banking would be more interactive i.e TV banking . Finland is
the first country in the world to have taken a lead in e- banking. In India , ICICI
Bank initiated e-banking services during 1997 under the brand name 'Infinity'. It
has been forecasted that among all categories, online baking is the future of
electronic financial transactions. The rise in e-commerce and internet in
enhancing online security transformation and sensitive information has been the
core reason for the penetration of online banking in everyday life. The shift
towards the involvement of the customers in the financial service with the help of
technology ,especially internet, has helped in reducing costs of financial
institutions as well as clients / customers who use the service at anytime and
from virtually anywhere with access to an internet connection. 2.3 Company
Profile In Online Banking Where ALLAHABAD BANK was? • In early 1990’s more
than 7000 branches were using traditional manual procedures. • These manual
procedures were inherited from the Imperial Bank. • Traditional procedures were
evolved over decades • Very few changes were brought in those procedures as
per the need of time. • In that time, mainframe or mini computers were used for
MIS, RECONCILLATION & FUND SETTLEMENT PROCESS, or we can say that
for backhand operations purpose. Changes brought in Information Technology by
ALLAHABAD BANK :- • In the next decade internet facility was provided for
individuals
13. 17. • All ALLAHABAD BANK branches were connected and ATM’S were launch •
2001 - KMPG appointed consultant for preparing IT Plan for the Bank. • Later on
Core banking proposed by the IT consultancy company. • 2002 – All branches
computerized but on decentralized systems, there the initiative of core banking
took place • 2008- more than 6500 branches (95% of business) on Core Banking
 Solution (CBS) • Internet Banking facility for Corporate customers were also
launched in early 2008 • More Interfaces developed with e-Commerce & other
sites through alternate channels like ATM & Online Banking • All Foreign Offices
were brought on Centralized Solution • Large network is playing the role of
backbone for connectivity across the country • Multiple Service Providers are
providing the links – BSNL, MTNL, Reliance, Tata & reliance which are making
the system errorless and provide high speed. • Multiple Technologies to support
the networking infrastructure – Leased lines, Dial-up, CDMA & VSAT CBS - Core
Banking System Components ELITEX-2008 8 CBS - Core Banking System
Components Datacenter Network Administrators Core-Banking Application OS,
Database Internet-Banking ATM Desktops, Branch Servers WAN, Internet
Branches Application Developers System AdministratorsBranch User/Admins
Alternative Channels
14. 18. Online ALLAHABAD BANK (www.allbankonline.in) Allahabad Bank is one of
India’s largest bank with a branch network of over 11000 branches and 6
associate banks located even in the remotest parts of India. Allahabad Bank
offers a wide range of banking products and services to corporate and retail
customers. Online Allahabad Bank is the Internet banking portal for . The portal
provides anywhere, anytime, online access to accounts for Retail and Corporate
customers. The application is developed using the latest cutting edge technology
and tools. The infrastructure supports unified, secure access to banking services
for accounts in over 11,000 branches across India. 2.4 Services And Products
RETAIL BANKING:- The Retail banking application is an integration of several
functional areas, and enables customers to:  Issue Demand Drafts online 
Transfer funds to own and third party accounts
15. 19.  Credit beneficiary accounts using the VISA Money Transfer, RTGS/NEFT
feature  Generate account statements  Setup Standing Instructions 
Configure profile settings  Use eTax for online tax payment  Use ePay for
automatic bill payments  Interface with merchants for railway and airline
reservations  Avail DEMAT and IPO services CORPORATE BANKING:- The
Online corporate banking application provides features to administer and manage
corporate accounts online. The corporate module provides roles such as
Regulator, Admin, Uploader, Transaction Maker, Authorizer, and Auditor. These
roles have access to the following functions:  Manage users, define rights and
transaction rules on corporate accounts  Access accounts in several branches
with a single sign-on mechanism  Upload files to make bulk transactions to third
parties, supplier, vendor and tax collection authorities.  Use online transactional
features such as fund transfer to own accounts, third party payments, and draft
issues  Make bill payments over the Internet.  Authorize, modify, reschedule
and cancel transactions, based on rights assigned to the user  Generate
account statement  Enquire on transaction details or current balance Value
added services:
16. 20.  Tax payments to central and state governments through site to site
integration.  Supply Chain Finance( e-VFS- Electronic Vendor Finance Scheme)
 Direct Debit Facility  E Collection Facilities for:  Core Banking Transactions
 Internet Bank transactions for incoming RTGS/NEFT Transactions  Internet
banking transactions for Allahabad Bank customers and associate banks  Debit
facility where suppliers can directly debit their customer’s account through
internet banking PRODUCTS AND SERVICES:- • E-Ticketing • Allahabad Bank
E-Tax • Bill Payment • RTGS/NEFT • E-Payment • Fund Transfer • Third Party
Transfer • Demand Draft • Cheque Book Request • Account Opening Request •
Account Statement • Transaction Enquiry • Demat Account Statement • Donation
2.5 SWOC Analysis ( Strength, Weaknesses , Opportunities , Challenges )
17. 21. Strengths : • Greater reach to customers . • Quicker time to market . • Ability
to introduce new products and services quickly and successfully. • Ability to
understand its customers’ needs. • Customers are given access to information
 easily across any location. • Greater customer loyalty . • Easy online application
for all accounts, including personal loans and mortgage. • 24 hours account
access. • Quality customer service with personal attention. Weaknesses: • Lack
of awareness among the existing customers regarding Online banking. •
Obsolesce of technology take place very soon specially in terms of security on
internet. • Procedure for applying for ID and password for using services related
to Online banking takes time. • Lack of knowledge is found regarding in Online
banking in employees of Allahabad Bank • Implementation of newer technology is
little bit complicated • Employees needs training to obtain knowledge regarding
Internet-banking. Opportunities: • Approximately 95% of customers are not using
internet banking. • Core competency can be achieved in terms of banking if focus
is made on awareness of internet banking • Can become 1st virtual bank of India.
• Concentration of various services should be made using internet banking
Challenges: • Maintaining Business Edge over competitors in the context of
sameness in IT infrastructure • Multiple vendor support is necessary for working
of highly complex technology
18. 22. • Maintaining secured IT infrastructure for business operations • Alternative
must be there in case of failure of system CHAPTER 3 -ANALYSIS AND
FINDINGS 3.1 Type Of Project - Survey Type This includes designing
questionnaire for collection of data through collection of data from target
respondents, processing and analyzing the data and arriving at conclusions. 3.2
Target Respondents The target of 150 respondents from the following group has
been taken for the study. Target Group : The study is based on the sample drawn
from the customers of ALLAHABAD BANK providing the internet banking facility.
3.3 Area Of Research
19. 23. The area of research is ALLAHABAD BANK that have adopted Online
Banking. Research is about to be conducted to the bank customers and staffs
with the sample size of 150. 3.4 Tools for Analysis The following tools are used
for the data analysis - • Percentage Analysis from Survey Report 12-13 • Chi -
Square Analysis 3.5 Data Analysis & Interpretation Table 1 - Age of Respondents
Serial Number Age No. Of Respondents Percentage 1 18-25 63 42 2 25-35 57 38
3 35-45 27 18 4 > 45 3 2 Total 150 100
20. 24. Figure 1 - Age Of Respondents Interference : From the above chart 42% of
the respondents 18-25 age, 38% of the respondents 25-35age, 18% of the
respondents 35-45age , 2% of the respondents >45 and none of the respondents
are greater than 44. Table 2 - Gender of Respondents Serial Number Gender No.
Of Respondents Round Off Percentage 1 Male 122 81 2 Female 28 19 Total 150
100
21. 25. Figure No 2 - Gender Of Respondents Interference : From the above chart
we found 81% of the respondents are male and 19% of the respondents are
female. Table No.3 - Education Level Of Respondents Serial Number Particulars
No. Of Respondents Percentage 1 10th 6 4 2 12th 9 6 3 U.G 87 58 4 P.G 48 32
Total 150 100
22. 26. Figure No. 3 - Education Level Of Respondents Interference : From the
above chart 4% of the respondents 10th , 6% of the respondents 12th , 58% of
the respondents U.G, and 32% of the respondents P.G. Table 4 - Occupation Of
Respondents Serial Number Particulars No. Of Respondents Percentage A
Student 45 30 B Government Employee 12 8 C IT Sector 60 40 D Other Private
Sectors 33 22 Total 150 100
23. 27. Figure No.4 - Occupation Of Respondents Interference : From the above
chart 30% of the respondents are Students , 8 % of the respondents Government
employee, 40% of the respondents IT sector, and 22% of the respondents other
private sectors. Table No.5 - Monthly Income Level Of Respondents Serial
Number Particulars No. Of Respondents Percentage A <5000 6 4 B 5001 - 8000
36 24 C 8001 - 12000 33 22 D 12001 - 15000 30 20 E >15000 45 30 Total 150
100
24. 28. Figure No.5 - Monthly Income Level Of Respondents Interference : From the
above chart 4% of the respondents are having monthly income <5000 , 24% of
the respondents are having monthly income between 5001-8000 , 22% of the
respondents are having monthly income between 8001-12000 , and 20% of the
respondents are having monthly income between 12001-15000, and 30% of the
respondents are having monthly income >15000. Table No.6 - Span Of Bank
Account Held By the Respondents Serial Number Particulars No. Of
Respondents Percentage A <1 Yr 9 6 B 1yr - 3yrs 72 48 C 3yrs - 5yrs 57 38 D
>5yrs 12 8 Total 150 100
25. 29. Figure No.6 - Span Of Bank Account Held By the Respondents How long you
have a bank account ? Interference : From the above chart 6% of the
respondents <1Yr, 48% of the respondents 1yr-3yr , 38& of the respondents 3yrs
- 5yrs, and 8% of the respondents >5yrs. Table No.7 - Projection Of Level Of
Internet Banking Usage Serial Number Particulars No. Of Respondents
Percentage 1 Yes 93 62 2 No 57 38 Total 150 100
26. 30. Figure No.7 - Projection Of Level Of Internet Banking Usage Do you use
Internet Banking ? Interference : From the above chart,62 % said Yes and 38%
said No. Table No.8 - Span Of Online Account Usage How long you have an
online account? Serial Number Particulars No. Of Respondents Percentage A < 1
Yr 35 38 B 1 Yr - 2Yr 26 28 C > 2 Yrs 32 34 Total 93 100
27. 31. Figure No.8 - Span Of Online Account Usage Interference : From the above
chart 38% of the respondents <1Year , 28% of the respondents1yr - 2 yrs, and
34% of the respondents >2yrs. Table No.9 - Frequency Of Internet Banking
Usage Serial Number Particulars No. Of Respondents Percentage 1 More than
once a week 43 46.23656 2 Once a week 20 21.50538 3 Once every 2 weeks 10
10.75269 4 Once a month 10 10.75269 5 Other 10 10.75269 Total 93 100
28. 32. Figure No.9 - Frequency Of Internet Banking Usage Interference : From the
above chart 50% of the respondents are more than once a week, 20% of the
respondents are once a week, 10% of the respondents are once every 2weeks,
10% of the respondents are once a month and 10% of the respondents are other.
Table No.10 - Online Services Used By the Respondents Which of the following
services used by you through the on-line banking systems ? Serial Number
Particulars No. Of Respondents Percentage 1 Online Bill Payment 35 37.6344 2
Fund Transfer 17 18.2795 3 Cheque Book Application 5 5.37634 4 Summary
Reports of Transaction 10 10.7526 5 Accounts Information & Balance Enquiry 10
10.7526 6 Share Margin Trading Account 16 17.20430 Total 93 100
29. 33. Figure No.10 - Online Services Used By the Respondents Interference : From
the above chart 35% of the respondents are online bill payment, 20% of the
respondents are fund transfer, 5% of the respondents are checkbook application,
10% of the respondents are Summary reports of transactions and 10% of the
respondents are account information and balance enquiry, 10% of the
respondents are Share margin trading account, 10% of the respondents are
none. Table No.11 - Opinion on Easy Conduct Of Transaction through Internet
Banking Serial Number Particulars No. Of Respondents Percentage 1 Strongly
Agree 8 8 2 Agree 48 52 3 Neutral 17 20 4 Disagree 20 20 5 Strongly Disagree 0
0 Total 93 100
30. 34. Figure No.11 - Opinion on Easy Conduct Of Transaction through Internet
Banking Interference : From the above chart 8% of the respondents are strongly
agree, 52% of the respondents are Agree , 20% of the respondents are neutral,
20% of the respondents Disagree and 0% of the respondents Strongly disagree.
Table No.12 - Opinion on Elimination of Timing Constraints through Internet
Banking Serial Number Particulars No. Of Respondents Percentage 1 Strongly
Agree 35 38 2 Agree 35 38 3 Neutral 15 16 4 Disagree 4 4 5 Strongly Disagree 4
4 Total 93 100
31. 35. Figure No.12 - Opinion on Elimination of Timing Constraints through Internet
Banking Interference : From the above chart 39% of the respondents strongly
 agree,38% of the respondents Agree, 15% of the respondents Moderate, 4% of
the respondents Disagree and 4% of the respondents Strongly Disagree.
32. 36. CHAPTER 4 - CONCLUSION AND RECOMMENDATIONS Analysis shows
that even though the Online Banking facility is having many advantages, it is not
utilized by many people. It shows that the younger generation people are more
likely to use the Internet banking facilities when compared to the middle age and
old age people. It is due to the unawareness of the customers towards the
internet banking facility. Also, the people are finding difficulties in using the
Internet banking websites which had created an aversion in them towards net
banking. This can be overcome if the banks conduct sessions on the various
features provided in their Online banking web sites. Even the younger generation
people are feeling insecure to use the online transaction facilities provided by the
banks. The internet banking technology should be made more secure so as it to
eliminate the constraint among the customers.
1. Why did we choose INTERNET BANKING?? Internet banking is becoming
more and more popular among the masses. To provide more Quality
Information on Internet Banking. Make the concept and procedure more
familiar. To warn against its negative effects.
2. 2. Internet banking means any user with a personal computer and a browser
can get connected to his bank’s website to perform any of the virtual banking
functions: Balance enquiry. Transfer of funds. Online payment of bills.
Accrued interest, fees and taxes. Transaction details of each account.
Accounts, credit card & home loan balances. Transfer funds to third party
accounts you nominate. Open a deposit right from the terminal you are sitting
at.
3. 3. The concept of Internet banking has beensimultaneously evolving with the
development ofthe World Wide Web. Programmers working onbanking data
bases came up with ideas for onlinebanking transactions, sometime during the
1980s.In 1983, the Nottingham BuildingSociety, commonly abbreviated and
referred to asthe NBS, launched the first Internet banking servicein United
Kingdom. This service formed the basis formost of the Internet banking facilities
thatfollowed. The facility introduced by NottinghamBuilding Society is said to
have been derived from asystem known as Prestel that is deployed by thepostal
service department of United Kingdom.
4. 4. History In India•ICICI was the first bank to initiate the Internet
BankingRevolution in India as early as 1997 under the brand nameInfinity.• ICICI
kicked off online banking way back in 1996. Buteven as a whole, 1996 to 1998
marked the adoptionphase, while usage increased only in 1999-due to lower
ISPonline charges, increased PC Penetration and a TechFriendly atmosphere.
5. 5. How to access Internet Banking?Before you can access your account online,
you’llneed to register with your bank for Internetbanking.Your bank will give you
a registration numberor login ID. You’ll also need a password (IPIN).Your Internet
password is different from the PINyou use with your debit card.Once your bank
has approved yourregistration, you’re able to access your accountsonline.
6. 6. STEP 1: Make sure your computer is connectedto the Internet.
7. 7. STEP 2: Go to your bank’s website. For security reasons, don’t click on a link
to your bank sent to you in an email – emails with links to fake websites are a
classic ploy of criminals trying to steal your identity
8. 8. STEP 3:Once you’re on your bank’s website you’ll see a button or othericon
labelled ‘Log on to Internet banking’ or something similar(the terminology varies
from bank to bank) Click on this icon It will take you to a login page
9. 9. STEP 4: Login to your Internet account It generally requires you to enter your
registration number or login ID You will also have to enter your password – either
by typing it in, or by clicking on letters and numbers onscreen
10. 10. STEP 5: Some banks have a two stage authentication process ― an
additional security measure to protect customers’ accounts and personal data. If
a two-stage process, you’ll then have to enter another code. The code may be
generated by a security token the bank gives you when you register for Internet
banking, or it could be contained in an SMS message the bank sends to your
mobile phone.
11. 11. STEP 6: If you’ve entered the correct information at all these stages, you’ll
gain access to your accounts and be able to begin your Internet banking
12. 12. STEP 7: Once you’ve got online access to your accounts you’ll see the
different types of transactions that you can perform. Usually on the left side of the
screen there will be a list of functions. Click on a function to open it. For example,
if you want to transfer funds, click on the button or icon labelled ‘Transfers’ or
something similar. You’ll need to complete the required data. Remember – make
sure that you have the right BSB (Bank State Branch ) code and account number
for the beneficiary of the transfer, as this is the information that the bank will use
to process the transfer.
13. 13. STEP 8: Once you’ve finished your Internet banking, be sure to log out from
your account. Most banks also have in place a ‘time-out’ feature, which means
that if you’re inactive for a certain period in your Internet banking session, you’ll
automatically be logged out.
14. 14. Merits/Demerits of Internet Banking Merits:Convenience: Unlike your corner
bank, online banking sites neverclose; theyre available 24 hours a day, seven
days a week, and theyre only a mouse click away.Ubiquity: If youre out of state
or even out of the country when amoney problem arises, you can log on instantly
to your online bank and take care of business, 24/7.Transaction speed: Online
bank sites generally execute andconfirm transactions at or quicker than ATM
processing speeds.
15. 15. Efficiency: You can access and manage all of your bank accounts, including
IRAs, CDs, even securities, from one secure site.Effectiveness: Many online
banking sites now offer sophisticated tools, including account aggregation, stock
quotes, rate alerts and portfoliomanaging programs to help you manage all of
yourassets more effectively. Most are also compatible with money managing
programs such as Quicken and Microsoft Money.
16. 16. Demerits:Start-up may take time: In order to register for your banks
onlineprogram, you will probably have to provide ID and sign a form at abank
branch. If you and your spouse wish to view and manage yourassets together
online, one of you may have to sign a durable powerof attorney before the bank
will display all of your holdings together.Learning curve: Banking sites can be
difficult to navigate at first.Plan to invest some time and/or read the tutorials in
order to becomecomfortable in your virtual lobby.Bank site changes: Even the
largest banks periodically upgradetheir online programs, adding new features in
unfamiliar places. Insome cases, you may have to re-enter account
information.The trust thing: For many people, the biggest hurdle to
onlinebanking is learning to trust it. Did my transaction go through? Did Ipush the
transfer button once or twice? Best bet: always print thetransaction receipt and
keep it with your bank records until it showsup on your personal site and/or your
bank statement.
17. 17. Services provided under internet banking  Online Bill Payment  Personal
Home Page  Ticket Booking  Prepaid Mobile Recharge  Market Watch 
Investment Services  Online Applications  Personal updates
18. 18. Increasing number of Fake emails fraudulent bank purporting to be sent
websites. from banks.Use of Trojan Horse Hackers who hack intoprograms to
capture personal bank user IDs and accounts and steal passwords. money.
19. 19. Nowadays a large number of fraudulent websites are coming up which aim
to trick persons into disclosing their sensitive personal information.
20. 20. Viruses and Worms –Trojan Horse Program
21. 21. Fake EmailsThis method is also known as Phishing. In the field of
computersecurity, phishing is the criminally fraudulent process of attempting
toacquire sensitive information such as usernames, passwords and creditcard
details by masquerading as a trustworthy entity in an electroniccommunication
Emails are send by Fraudulent bank. Customer’s verify the personal
information. These Emails Guide customers and make them enter the fraud
links. Thereby Disclosing the customer’s ATM card numbers and their
passwords
22. 22. Here is an example of this bankwarning its customers of the fakeemails they
can receive:
23. 23. Hackers Pharming is a hackers attack aiming to redirect a websites traffic to
another, bogus website. In recent years both pharming and phishing have been
used for online identity theft information.Pharming has become of major concern
to businesses hosting ecommerce and online banking websites. Sophisticated
measures known as anti-pharming are required to protect against this serious
 threat. Antivirus software and spyware removal software cannot protect against
pharming.

24. 24. Conclusion

25. Internet banking is changing the banking industry and is having the major effects
on banking relationships. The net banking, thus, "now is more of a norm rather
than an exception in many developed countries" due to the fact that it is the
economical way of providing banking services. Banking is now no longer
confined to the traditional brick and mortar branches, where one has to be at the
branch in person, to withdraw cash or deposit a cheque or request a statement of
accounts. Providing internet banking is increasingly becoming a need to have
than a nice to have services.

awards

 Punjab National Bank was ranked #717 in the Forbes Global 2000 in May 2013.[24]
 Punjab National Bank was ranked #26 in the Fortune India 500 ranking of 2011.[25]
 PNB was awarded the 'Best Public Sector Bank' by CNBC TV18 in 2012.[26]
 The bank was recognised as the 'most socially responsive bank'
by Businessworld and PwC in 2012.[27][28]
 In 2011, it received Golden Peacock Award for "Excellence in Corporate Social
Responsibility"[29] and "National Training Award".[30]
Timeline[edit]
In 1900 PNB established its first branch outside Lahore in India. Branches
in Karachi and Peshawar followed. The next major event occurred in 1940 when PNB
absorbed Bhagwan (or Bhugwan) Dass Bank, which had its head office in Dehra Dun.
At the Partition of India and the commencement of Pakistani independence, PNB lost its
premises in Lahore, but continued to operate in Pakistan. Partition forced PNB to close
92 offices in West Pakistan, one-third of its total number of branches, and which held
40% of the total deposits. PNB still maintained a few caretaker branches. On 31 March
1947, even before Partition, PNB had decided to leave Lahore and transfer its registered
office to India; it received permission from the Lahore High Court on 20 June 1947, at
which time it established a new head office at Under Hill Road, Civil Lines in New Delhi.
Lala Yodh Raj was the Chairman of the Bank.
In 1951, PNB acquired the 39 branches of Bharat Bank (est. 1942). Bharat Bank became
Bharat Nidhi Ltd. In 1960, PNB again shifted its head office, this time from Calcutta to
Delhi. In 1961, PNB acquired Universal Bank of India, which Ramakrishna Jain had
established in 1938 in Dalmianagar, Bihar. PNB also amalgamated Indo Commercial
Bank (est. 1932 by S. N. N. Sankaralinga Iyer) in a rescue. In 1963, The Burmese
revolutionary government nationalized PNB's branch in Rangoon (Yangon). This became
People's Bank No. 7.[9]After the Indo-Pak war, in September 1965 the government of
Pakistan seized all the offices in Pakistan of Indian banks. PNB also had one or more
branches in East Pakistan (Bangladesh).
The Government of India (GOI) nationalized PNB and 13 other major commercial banks,
on 19 July 1969. In 1976 or 1978, PNB opened a branch in London. some ten years
later, in 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. That same year,
1986, PNB acquired Hindustan Commercial Bank (est. 1943) in a rescue. The acquisition
added Hindustan's 142 branches to PNB's network. In 1993, PNB acquired New Bank of
India, which the GOI had nationalized in 1980. In 1998 PNB set up a representative office
in Almaty, Kazakhstan.
In 2003 PNB took over Nedungadi Bank, the oldest private sector bank in Kerala. 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. In 2004, PNB established a branch in Kabul,
Afghanistan, a representative office in Shanghai, and another in Dubai. PNB also
established an alliance with Everest Bank Limited in Nepal that permits migrants to
transfer funds easily between India and Everest Bank's 12 branches in Nepal. Currently,
PNB owns 20% of Everest Bank. Two years later, PNB established PNBIL – Punjab
National Bank (International) – in the UK, with two offices, one in London, and one in
Southall. Since then it has opened more branches, this time in Leicester, Birmingham,
Ilford, Wembley, and Wolverhampton. PNB also opened a branch in Hong Kong. In
January 2009, PNB established a representative office in Oslo, Norway. PNB hopes to
upgrade this to a branch in due course. In January 2010, PNB established a subsidiary
in Bhutan. PNB owns 51% of Druk PNB Bank, which has branches
in Thimpu, Phuentsholing, and Wangdue. Local investors own the remaining shares.
Then on 1 May, PNB opened its branch in Dubai's financial center. PNB purchased a
small minority stake in Kazakhstan-based JSC Danabank established on 20 October
1992 in Pavlodar. Within the year PNB increased its ownership till 84% of what has
become JSC (SB) PNB, with its share currently decreased to 49%. The associate in
Kazakhstan now called JSC Tengri Bank has branches
in Almaty, Astana, Karaganda, Pavlodar and Shymkent. September 2011: PNB opened a
representative office in Sydney, Australia. December 2012: PNB signed an agreement
with US based life Insurance company Metlife to acquire a 30% stake in MetLife's Indian
affiliate MetLife India Limited. The company would be renamed PNB MetLife India
Limited and PNB would sell MetLife's products in its branches.[10][6][11][6][11] | assets = ₹6,435
billion (US$90 billion) (2015)[12]
features:-
Punjab National Bank (PNB) was incorporated under Act VI of the Indian Companies
Act and began its operations just a day before Baisakhi, i.e. on 12th April 1895 from
Lahore. It started its operations with a working capital of Rs 20,000 and Rs 2 lakhs of
authorized capital. Creation and establishment of this bank is attributed to visionaries
like Mr. Jessawala, Lala Lajpat Rai, Lala Harikrishan Lal, Babu Kali Prasono Roy
and Sardar Dyal Singh Majithia. The main objective in formation of PNB was to
provide the country with a true national bank which would dedicate itself to working
towards the economic interest of the country and play a pivotal role in ensuring the
country’s growth and prosperity. Lala Lajpat Rai played a key role in forming the
establishment of PNB in its formative years.
credit cards
Introduction of credit cards have given a boost to cashless economy and resulted in
encouraging individuals and businessmen towards use of cashless transactions. Punjab
National Bank has three credit cards which are affiliated to VISA, these are, PNB
Global Gold Credit Card, PNB Global Classic Credit Card and PNB Global Platinum
Credit Card. All the cards offer attractive perks and reward points against expenses
which are charged to the card or transactions carried out using the card. In case of
theft or loss of credit card, you will have to immediately report to the toll free
customer care number which is available 24X7.
Overview

Founded in 1894, Punjab National Bank (PNB) is an Indian multinational banking

and financial services company headquartered in New Delhi, India. It is one of the
oldest banks catering to 80 million customers with over 6,968 branches and more than
9,935 ATMs across the country. PNB has also extended its operations worldwide by
establishing branches and representative offices in Hong Kong, Kabul, Dubai,
Almaty, Oslo, Shanghai and Sydney. It offers a host of banking products and financial
services which include private equity, consumer banking, private banking, corporate
banking, mortgage loans, wealth management, insurance and credit cards. PNB is
considered the third largest public sector bank in India with respect to assets and
ranked among the top 250 largest banks across the world. It has been awarded as
‘Best Public sector bank’ by CNBC TV and recognised as ‘Most Socially Responsive
Bank’ by Business-world and PwC for showing consistent growth in the banking
sector. It also holds major rankings such as Fortune India 500 and Forbes Global
2000.

Punjab National Bank Debit cards

In order to provide value added services to its customers, PNB offers a range of debit
cards which are designed according to their needs. These debit cards are tailor-made to
provide the convenience of cashless transactions and you are not charged on cash
withdrawals from PNB or any other bank ATMs.

Why choose Punjab National Bank debit card

 Get enhanced cash withdrawal and transaction limits

 Enjoy cashless shopping at retail and online stores worldwide
 Get add on facility on selected PNB debit cards
 Get safe and secure transactions because of 3D Secure Password protection on
your PNB debit cards
 PNB debit cards can also be used for paying utility bills, dining, entertainment,
booking train or bus tickets and much more.

Types of PNB Debit Cards

PNB offers its customers with a wide range of debit card options that are in line with
the requirements of various customer groups.

Classic Debit Card (Magstripe)

The Punjab National Bank Classic debit is the perfect option for those seeking a basic
debit card which is linked to their account. The following are its key features:
  Classic Debit Cards are chip and PIN based debit cards which are specially
designed for Punjab National Bank savings account holders.
 You can either opt for a personalised debit card which has your name on it or a
non-personalised debit card which does not has your name on it.
 Get higher cash withdrawal and purchase limit daily. Maximum daily cash
withdrawal limit is Rs 25,000 per day at PNB ATMs, while the transaction limit
is Rs. 15,000 per day at other bank ATMs. The maximum daily transaction limit
is Rs. 60,000 at PoS terminals and e-commerce websites.
 You can also transfer funds to your friends and family from one PNB account
to another using your PNB debit card.

Platinum Debit Card (Magstripe)

PNB offers its platinum debit card for customers who desire more when shopping in a
cashless manner. The following are some key features of this card:

 Platinum Debit Card is specially designed for PNB premium account holders.
 You can personalise your debit card with your name on it.
 Get enhanced cash withdrawal limit of Rs 50,000 per day along with purchase
limit of Rs. 1.25 lakhs per day at POS terminals or e-commerce websites across
India
 Moreover enjoy purchase limit of $500 per day at POS terminals or ecommerce
websites worldwide.

MITRA ATM Card

The PNB Mitra Card is specially designed to suit the requirements of Mitra Account
holders and the following are its key benefits:

 MITRA ATM Card is designed for all MITRA Account holders at PNB.
Customers who do not have a MITRA account can also apply for it.
 This debit card can be used to withdraw cash from PNB ATMs across the
country but cannot be used for making transactions at POS terminals and online
merchant websites.
 Cash can be withdrawn through the Biometric system. Maximum daily cash
withdrawal limit is Rs. 5,000.

RuPay Debit Card

 RuPay Debit Card is based on the RuPay platform and can be used to make
transactions across India.
 Cash can be withdrawn at only RuPay enabled ATMs and transactions can be
made at only RuPay POS terminals.

RuPay Kisan Card

 RuPay Kisan Card is exclusively made for PNB Kisan account holders.
 Enjoy a daily cash withdrawal limit of up to Rs. 25000 and daily spending limit
of up to Rs.60000 at POS terminals and online merchant websites.
Master International Debit Card

In order to enable international transactions, Punjab National Bank introduced Master

International Debit Card which is also available in the form of personalised and non-
personalised variants.

Master International Debit Card comes with enhanced cash withdrawal and
transaction limits.

 Maximum cash withdrawal limit is Rs.50000 per day at ATMs

 Maximum daily spending limit at POS terminals and e-commerce websites in
Rs.1.25 lakhs

For foreign transactions, the limits will be applicable according to the conversion rate.

Classic Debit Card (Master & RuPay Variant)

Classic Debit Card is designed for general category account holders. It is available in
both personalised and non-personalised versions, personalised classic debit card will
have cardholder’s name on it. Classic Debit Card can be used to make fund transfer
from one PNB account to another.

 Maximum daily cash withdrawal limit is Rs. 25000 at ATMs across the country.
 Maximum daily transaction limit is Rs.15000 at POS terminals and ecommerce
websites established in India.
 There is no limit on fund transfer from your PNB account to another PNB
account. Every transaction has a cap of Rs.1 lakh
 In case of third party transfers, maximum transfer limit is same as the available
cash limit.

Platinum Debit Card

Platinum Debit Card is designed for elite account holders of PNB. This debit card is
available in personalised variant which will have card holder’s name and photo on it.
Get same characteristics and features as the classic debit card with some additional
features such as:

 Enjoy enhanced cash withdrawal and purchase limit. Avail daily cash
withdrawal of Rs.15000 and daily transaction limit of up to Rs.50000.

 Get daily spending limit of Rs.1.25 lakhs at POS and ecommerce websites.
 RuPay Platinum debit card can only be used within India and cannot carry out
international transactions.
 Cardholders can opt for 2 add on cards for their close family members.

EMV Card

EMV Debit Card can be used for making international transactions. It has an EMV
chip and magstripe embedded in it which ensures safe and secure transactions. It is a
personalised card which has the card holder’s name on it.
  Maximum daily cash withdrawals is Rs.50000 per day at ATMs
 Maximum transaction limit is Rs.1.25 lakhs per day at POS terminals and e-
commerce websites.
 Cardholders can link a maximum of 3 accounts to their EMV card.

Rupay MUDRA Debit Card

MUDRA Debit Card is a non-personalised debit card which is offered on the RuPay
platform

 Avail maximum cash withdrawals of Rs.25000 per day at all ATMs across
India.
 Enjoy higher transaction limit of Rs.60000 per day at POS terminals and online
merchant websites established in India.
INTRODUCTION :-

profile :-
l of Rs 20,000. Far-sighted visionaries and patriots like Lala Lajpat Rai, Mr. E.C.
Jessawala, Babul Kali Prasono Roy, Lala Harkishan Lal and Sardar Dyal Singh
Majithia displayed courage in giving expression to the spirit of nationalism by
establishing the first bank purely managed by Indians with Indian Capital. During
the long history of the Bank, 7 banks have merged with PNB.
The Bank’s brand image and trust reposed by its customers have been reflected in
growing customer base and rising business graph of the Bank. Domestic Business
of the Bank is over Rs.10 lakh crore and the Bank continues to maintain its forte
in low cost CASA deposits. The Bank has shaken off one of the biggest adversities
in its history and has rebounded back. Focus on recovery and arresting fresh
slippages with a simultaneous shift towards higher earnings through qualitative
credit growth alongwith rationalization of Risk Weighted Assets (RWAs) has
helped Bank to return to profit and improve CRAR.
The Bank has been able to achieve better results in the quarter owing to MISSION
PARIVARTAN, a transformational exercise underway for Business Excellence
aimed at enhancing Efficiency, Productivity and Profitability for long term
sustenance and giving the Bank an edge over its competitors. `Mission
Parivartan Division`, an independent `THINK TANK` formed to initiate,
implement and drive change through improvement in People, Products and
Processes, has enabled Bank to serve the customers with enhanced vigour and
zeal to live upto its tagline “The Name you can Bank Upon”.
MEANING:-

What is Online Banking?

Online Banking, also known as net banking, e-banking or online banking, is the facility
provided by banks and financial institutions which allows customers to use banking
services via internet. There are scores of services like online money transfer, account
opening, bill payment, tracking account activity, etc., which are made available to
customers with the help of online banking. Online banking also allows banks to
advertise their products and services in a manner that it reaches out millions of
customers. However, in order to use online banking, an individual will require access
to the internet, which is scarcely available in rural areas. Internet banking can also be
accessed via mobile phones which have a data 3G/4G connection.
With the help of online banking, there are several indispensable services which are
made available to customers, without them having to personally visit the bank.
Customers can perform financial transactions like transfer funds online, pay bills,
apply for loans and open a savings account among various other debit
card transactions. Under non-financial transactions, customers can carry out several
activities which may require going to the bank like applying for a new cheque book,
getting account statements, update contact information, start/stop payment, etc.

Retail banking, also known as consumer banking, is the typical mass-

market banking in which individual customers use local branches of
larger commercial banks. Services offered include savings and
checking accounts, mortgages, personal loans, debit/credit cards
and certificates of deposit (CDs). In retail banking, the focus is on the
individual consumer.

Retail banking provides financial services for individuals and families.

The three most important functions are credit, deposit, and money
management. They are a component of commercial banking.

First, retail banks offer consumers credit to purchase homes, cars, and
furniture. These include mortgages, auto loans, and credit cards. The
resulting consumer spending drives almost 70 percent of the U.S.
economy. They provide extra liquidity to the economy this way. Credit
allows people to spend future earnings now. Retail banks also
offer small business loans to entrepreneurs. These small companies
create up to 65 percent of all new jobs as they grow.

Second, retail banks provide a safe place for people to deposit their
money. Savings accounts, certificates of deposit, and other financial
products offer a better rate of return compared to stuffing their money
under a mattress. Banks base their interest rates on the Fed funds
rate and Treasury bond interest rates. That's why they rise and fall over
time. The Federal Deposit Insurance Corporation insures most of these
deposits.
Third, retail banks allow customers to manage your money with
checking accounts and debit cards. That means they don't have to do
all your transactions with dollar bills and coins. All of this can be done
online, making banking an added convenience.

Retail banking aims to be the one-stop shop for as many financial

services as possible on behalf of individual retail clients. Consumers
expect a range of basic services from retail banks, such as checking
accounts, savings accounts, personal loans, lines of credit, mortgages,
debit cards, credit cards and CDs.

Most consumers utilize local branch banking services, which provide

onsite customer service for all of a retail customer's banking needs.
Through local branch locations, financial representatives provide
customer service and financial advice. Financial representatives are
also the lead contact for underwriting applications related to credit-
approved products. Retail banking encompasses the services offered to
consumers by commercial banks. The term "retail" refers to the almost
storefront-shopping nature of commercial banking services.

Most commercial banks have extensive retail banking services and

products to reach a wide consumer base.

Here's a brief story about Bob's day at his bank XYZ. He arrives at the
bank one day to deposit a $2000 paycheck into his account. He decides
to deposit $1000 of the paycheck into his existing checking account.
The other $1000 he decides to use to open a savings account. Bob sits
with a bank representative who explains the various savings account
options and helps him with opening an account once he's made a
decision.

Additionally, the account representative informs Bob of retirement plans

the bank offers as well as educational savings plans for his children.
Before he leaves, Bob also takes information on auto loans offered by
the bank since he is considering purchasing a new car. While at the
bank, Bob was able, in one place, to deposit money, open a savings
account and find information relating to banking products he may need
in the future.

Types of Retail Banks

Most of America's largest banks have retail banking divisions. These

include Bank of America, JP Morgan Chase, Wells Fargo, and
Citigroup. Retail banking makes up to 50 to 60 percent of these banks'
total revenue.

There are many smaller community banks as well. They focus on

building relationships with the people in their local towns, cities, and
regions. They have less than $1 billion in total assets.

Credit unions are another type of retail bank. They restrict services to
employees of companies or schools. They operate as non-profits. That
means they can offer better terms to savers and borrowers because
they aren't as focused on profitability as the bigger banks.

Savings and loans are retail banks that target mortgages. They've
almost disappeared since the 1989 savings and loans crisis.

Lastly, Sharia banking conforms to the Islamic prohibition against

interest rates. So borrowers share their profits with the bank instead of
paying interest. This policy helped Islamic banks avoid the 2008
financial crisis. They didn't invest in risky derivatives. These banks
cannot invest in alcohol, tobacco, and gambling businesses.

Definition:-

Retail banking, also known as Consumer banking, refers to the offering of banking
services to retail customers instead of institutional customers, such as companies,
corporations and/or financial institutions.

What is the definition of retail banking?

Retail banking includes a wide range of banking services that belong to similar
categories, such as savings accounts, checking accounts, consumer lending, credit
cards, debit cards, mortgages, e-banking services, phone-banking services, insurance,
investment and fund management.
Consumers use local branches that have the capacity to deliver all these services to
retail customers. In fact, retail-banking keeps the money circulating as the Fed allows
only 10% of deposits on hand. So, the retail banks have to circulate the remaining
90% either in the form of loans or in the form of investment products
HISTORY:-

Before The 1980s, Banks Were Highly Regulated. Much Of This Came About In
Response To The 1929 Stock Market Crash. In The 1930s, The Glass-Steagall Act
Prohibited Retail Banks From Using Deposits To Fund Risky Stock Market Purchases.

Banks Also Could Not Operate Across State Lines. Retail Banks Could Not Use Their
Depositors' Funds For Investments Other Than Lending. They Often Could Not Raise
Interest Rates. During The 1970s, These Banks Lost Business As Double-Digit
Inflation Made Customers Withdraw Deposits. Retail Banks' Paltry Interest Rates
Weren't Enough Of A Reward For People To Save. Banks Cried Out To Congress
For Deregulation.

The 1980 Depository Institutions Deregulation And Monetary Control Act Allowed
Banks To Operate Across State Lines. Large Banks Began Gobbling Up Small Ones.
In 1998, Nations Bank Bought Bank Of America To Become The First Nationwide
Bank. The Other Banks Soon Followed. That Consolidation Created The Four National
Banking Giants In Operation Today.

It Also Allowed Banks To Raise Interest Rates On Deposits And Loans. In Fact, It
Overrode State Limits On Interest Rates. Banks No Longer Had To Direct A Portion
Of Their Funds Toward Specific Industries, Such As Home Mortgages. They Could
Instead Use Their Funds In A Wide Range Of Loans, Including Commercial
Investments.

he Fed lowered its reserve requirements. That gave banks more money to lend, but it
also increased risk. To compensate depositors, the Federal Deposit Insurance
Corporation raised its limit from $40,000 to $100,000 savings.

In 1982, President Reagan signed the Garn-St. Germain Depository Institutions Act.
It removed restrictions on loan-to-value ratios for savings and loan banks. It also
allowed these banks to invest in risky real estate ventures. By 1995, more than half of
them had failed. The resultant savings and loan crisis cost $160 billion.

In 1999, the Gramm-Leach-Bliley Act repealed Glass-Steagall. It allowed banks to

invest in even riskier ventures. They promised to restrict themselves to low-
risk securities. That would diversify their portfolios and lower risk. But as competition
increased, even traditional banks invested in risky derivatives to increase profit and
shareholder value.

All these extra factors forced banks to cut costs. They closed rural branch banks. They
relied more on ATMs and less on tellers. They focused on personal services to high net
worth clients and began charging more fees to everyone else.
Punjab National Bank (PNB) is a state-owned commercial bank located in New Delhi.
PNB is one of the leading commercial banks in India. They offer banking products
and also operate credit card and debit card business bullion business life and non-life
insurance business and gold coins and asset management business. They are
recognized as the bank offering highest levels of customer satisfaction in Delhi and
Chennai. As on 31 December 2017 PNB's domestic branch network stood at 6957
along with 9598 ATMs. The bank has three overseas branches in Hong Kong Dubai
and Offshore Banking Unit in Mumbai and Representative Offices (RO) at Dubai
(UAE) Shanghai (China) Sydney (Australia) and Dhaka (Bangladesh). The bank has
two overseas subsidiaries viz. PNB International Ltd. (UK) and Druk PNB Bank Ltd
(Bhutan). The bank also has one associate company viz. JSC Tengri Bank
(Kazakhstan) and one Joint Venture Bank in Nepal i.e. Everest Bank Ltd. The bank
has got permission from RBI for opening Representative office in Yangon
(Mynamar). Punjab National Bank was incorporated in the year 1895 at Lahore
undivided India. The Bank has the distinction of being the first Indian bank to have
been started solely with Indian capital. In the year 1940 the Bank absorbed Bhagwan
Dass Bank a scheduled bank located in Delhi circle. In the year 1951 they acquired
the 39 branches of Bharat Bank and in the year 1961 they acquired Universal Bank of
India.Punjab National Bank was nationalised in July 1969 along with 13 other banks.
In the year 1986 they acquired Hindustan Commercial which added Hindustan's 142
branches to the Bank's network. In the year 1993 they acquired New Bank of India
which the GOI. During the year 1996 they developed a packaged for corporate
customers for fast remittance of funds from different up-country branches. In the year
they set up a representative office in Almaty Kazakhstan.In the year 2000 the Bank
has introduced a scheme for providing finance against mortgage of immovable
property. In September 2000 they commenced their gold business in the form of Gold
Import Scheme. In November 2000 they launched an International Co-branded Credit
Card of Punjab National Bank and Hongkong & Shanghai Banking Corporation
(HSBC) in New Delhi. In March 2002 the Bank came out with their first Initial public
offer (IPO) for 53060700 equity shares of Rs 10 each which resulted in the reduction
of the government's shareholding in the Bank. During the year 2002 they started their
branch in M.G. Road Bangalore named as Mid-Corporate Branch (MCD) to provide
their corporate clients with a credit limit of Rs 3.5 crore and above. They made joint
venture with Infosys for the implementation of a Centralized Banking Solution for
them. Also they made a tie up with Cisco Systems for networking 3870 branches as
part of their Rs 150 crore plan.In the year 2003 the Bank took over Kozhikode-based
Nedungadi Bank Ltd (NBL). The Bank entered into an alliance with New India
Assurance for selling their general insurance products. Also they opened a
representative office in London. During the year PNB Capital Service Ltd was
amalgamated with the Bank.In June 2003 the Bank entered into an MoU with
Principal Financial Services Inc (USA) and Vijaya Bank for joint venture partnership
in Life Insurance Pensions and Asset Management (MF) business. Also they formed a
strategic alliance with Infrastructure Leasing and Financial Services Ltd (IL&FS) for
setting up a private equity fund for investing in domestic companies.In the year 2004
the Bank acquired the assets of Hindustan Transmission Product Ltd. They signed a
corporate agency agreement with Export Credit Guarantee Corporation of India Ltd
(ECGC) for marketing ECGC's export credit insurance products through the network
of the bank's branches. Also an MoU was signed with Intel for the deployment of
various IT-related solutions. During the year the Bank signed an MoU with ICICI
Bank for ATM network sharing. They awarded a project to Tata Consultancy Services
(TCS) for implementing human capital management and payroll solution. They
established a branch office in Kabul Afghanistan. Also they opened a representative
office in Shanghai. The bank 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. In the year 2005 the Bank unveiled ATM at Edappal. Also they
opened a representative office in Dubai. In the year 2006 the Bank made a tie up with
MasterCard International to launch a signature-based debit card. Also they made a tie
up with Indian Airlines for online booking of air tickets. They opened a new branch in
Uttarakhand. In October 2007 the Bank entered into MoU with India Infrastructure
Finance Company with an aim to extend their cooperation and support to IIFC in
areas of creating a deal flow of infrastructure projects. In January 2008 the Bank
commenced commercial banking operations in Hong Kong. During the year 2008-09
the Bank opened 168 branches out of which 90 are new branches and 78 branches was
added through upgradation of Extension Counters. They made collaboration with LIC
for selling insurance policies and also made a tie up with Oriental Insurance for
selling non-life policies on a referral basis. In June 2008 they entered into an MoU
with ILFS Cluster Development Initiative Ltd for providing finance for various
industrial infrastructure projects in the country. In September 2008 they signed an
MoU with SMC Global Securities Ltd and Networth Stock Broking Ltd for providing
online trading facility to Company's customers. They offered a unique '3 in 1 account'
comprising of Saving Demat and Trading account. In February 2009 they
commercially launched their credit cards with 2 types of consumer credit cards
namely Gold and Classic. Also they entered into an agreement with Oriental
Insurance Company to market insurance products a practice also known as
bancassurance. In March 2009 the Bank entered into an understanding with Tata
Motors for financing entire range of passenger cars. Also they executed an agreement
with The Life Insurance Corporation of India for bancassurance life insurance under
the provisions of IRDA's Referral Arrangement. During the year 2009-10 the Bank
opened 524 domestic branches out of which 347 are at new locations while 177
branches was added through upgradation of existing Extension Counters. They
deployed 1400 ATMs taking the the total count of ATMs to more than 3500 Nos.
They opened two overseas branches 1 in Hong Kong and another at DIFC Dubai and
started a JV banking subsidiary 'DRUK PNB Bank Ltd' in Bhutan. Also they opened a
representative office in Oslo Norway.During the year the Bank sold 6.5% of their
stake in UTI Assets Management Co Ltd and UTI Trustee Pvt Ltd thus bringing down
their stake in both these companies to 18.5%. They launched Corporate Credit Card
with Individual liability. Also they launched Merchant Acquiring Business through
installation of Point of Sale (PoS) Terminals at Merchant Establishments and Internet
Payment Gateway by integrating through Merchant Website with Brand Name PNB
Biz.In May 2009 the Bank incorporated a subsidiary company namely PNB
Investment Services Ltd. In November 2009 they entered into an agreement with FIM
Bank (Malta) Banca IFIS Italy and Blend Financial Services Ltd Mumbai for setting
up a joint venture company for providing factoring forfeiting and trade finance related
business.During the year 2010-11 the Bank introduced new set of products and
services such as PNB Uphaar PNB Suvidha and World Travel Card. In December 13
2010 they acquired 63.64% stake in JSC Dana Bank of Kazakhstan. In January 12
2011 the Bank's joint venture India factoring and Finance Solutions Pvt Ltd started its
commercial operations from Delhi Mumbai & Chennai.The total number of branches
at the end of March 2011 rose to 5189. The branch network comprises 2047 Rural
1154 Semi Urban 1111 Urban and 877 Metropolitan branches. During the review
period 210 domestic branches were opened. With 5189 branches including 28
Extension Counters the Bank has the largest network amongst the nationalized banks.
As part of customer segmentation Bank has opened specialized Branches that include
6 Micro Finance branches 59 SME branches 11 International Banking Branches 17
Asset Recovery Management Branches 13 Mid Corporate Branches 11 Large
Corporate Branches 73 Retail Asset Branches 11 Agriculture Finance Branches 3
high-tech agriculture branches 1 Capital Market Services Branch and 1 International
Service Branch. Besides 41 Back Offices 2 Special Foreign Exchange Offices 17
Special MICR Centres 41 Service (Regional Clearing Centre) centres 4 Financial
Inclusion Service Centres 3 Centralised Draft Payable Centres 1 Central Clearing
Service Centre and 1 Depository Back Office are established to reduce delivery time
and improve response time.On 5 March 2010 PNB announced that the bank has
received permission from RBI for setting up a representative office in Sydney
Australia.On 13 December 2010 PNB announced that the bank has completed the
transaction for acquisition of 63.64% stake in JSC Dana Bank Kazakhstan. PNB has
acquired 35 million shares of 1000 Tenge each at par for 3.5 Bn Tenge (USD 23.765
million approx.) which has raised the capital of JSC Dana Bank to the level of 5.5 Bn
Tenge from the existing 2 Bn. Tenge. On 12 January 2011 PNB announced that it has
bought Principal Financial Group of Mauritius (PFG) and U K Paints stake of 26%
and 32% respectively in Principal PNB Life Insurance Company Ltd. After the
transaction the bank's stake in Principal PNB Life Insurance Company Ltd stands at
88%. PNB also said at that time that it will continue to support Principal PNB Asset
Management Company Pvt Ltd for a period of three years. On 15 February 2011 PNB
announced that the bank has entered into an arrangement with Weizmann Forex Ltd.
Mumbai (Principal Agent) for handling inward remittances under MTSS (Money
Transfer Service Scheme) through Western Union. The bank also entered into an
arrangement with BFC Forex & Financial Services Ltd. Thane (Maharashtra) for
handling inward remittances under MTSS (Money Transfer Service Scheme) through
the web based product EzRemit.On 28 April 2011 PNB announced the issue and
allotment of 15.09 lakh equity share at issue price of Rs 1218.82 per equity share to
Government of India on preferential basis aggregating Rs 184 crore.On 28 March
2012 PNB announced that upon receipt of allotment money of Rs 1589.90 crore from
Life Insurance Corporation of India (LIC) the bank has allotted 1.58 crore equity
shares at issue price of Rs 1003.69 per share to LIC on preferential basis. On 2 April
2012 PNB announced that upon receipt of allotment money of Rs 654.99 crore from
Government of India the bank has allotted 65.25 lakh equity shares at issue price of
Rs 1003.69 per share to Government of India on preferential basis.On 16 January
2013 PNB announced that the bank has acquired 30% stake in Metlife India Insurance
Co. Ltd.On 6 March 2013 PNB announced that upon receipt of allotment money of Rs
1247.99 crore from Government of India on 4 March 2013 the bank has allotted 1.42
crore equity shares at issue price of Rs 873.05 per share on preferential basis to
Government of India.On 28 October 2013 PNB announced that the Chairman &
Managing Director of the bank as per authority delegated by the Board has approved
issuance of equity shares of face value of Rs 10 each for an amount upto Rs. 500 crore
at such price as may be decided as per SEBI (ICDR) Regulations 2009 on preferential
basis in favour of Government of India subject to necessary approvals. On 4 March
2014 PNB announced that the bank has sold its entire stake in Credit Information
Bureau India Ltd. (CIBIL) to TransUnion International Inc. (FII). On 1 April 2014
PNB announced that it has sold its entire 30% stake in India Factoring & Financial
Solutions Ltd. (IFFSL) to parent promoter FII (FIM Bank (Malta) and realized Rs
107.83 crore. On 4 July 2014 PNB announced that it has sold 41% stake in High Mark
Credit Information Services Ltd. (High Mark) to CRIF and realized Rs 4.15 crore.The
Board of Directors of PNB at its meeting held on 19 September 2014 granted in-
principle approval for sub-division of existing equity shares of face value of Rs 10
each into 5 equity shares of face value of Rs 2 each.On 1 April 2015 PNB announced
that capital funds to the tune of Rs 870 crore have been received from the
Government of India on 31 March 2015 for issue and allotment of 4.42 crore equity
shares at a price of Rs 196.80 per equity share to Government of India on preferential
basis in accordance with Regulation 76(1) of SEBI ICDR Regulations.On 30
September 2015 PNB announced that consequent upon receipt of capital funds to the
tune of Rs 1732 crore from the Government of India on 29 September 2015 the bank
has issued and allotted 10.9 crore equity shares at a price of Rs 158.84 per equity
share on preferential basis to Government of India in accordance with Regulation
76(1) of SEBI ICDR Regulations.On 15 September 2016 PNB announced that
consequent upon receipt of capital funds to the tune of Rs 2112 crore from the
Government of India on 14 September 2016 the bank has issued and allotted 16.43
crore equity shares at a price of Rs 128.49 per equity share on preferential basis to the
Government of India in accordance with Regulation 76(1) of SEBI ICDR
Regulations.Punjab National Bank (PNB) and India Post Payments Bank (IPPB)
signed a memorandum of understanding on 17 January 2017 wherein PNB shall
provide technology platform for pilot launch of IPPB on receipt of regulatory
approval from Reserve Bank of India. The Board of Directors of PNB at its meeting
held on 2 November 2017 authorized the management to partially sell its stake in
PNB Housing Finance Ltd. Further consequent upon the exercise of call option by the
Principal Group the Board has approved to offload PNB's entire stake in Principal
PNB Asset Management Company and Principal trustee Company Pvt Ltd to the
Principal group.On 5 December 2017 PNB announced that the bank successfully sold
98.15 lakh equity shares of PNB Housing Finance Ltd (PNBHFL) to different
investors (Non Retail and retail) at above the floor price /cut off price with gross sales
consideration of Rs 1315.33 crore.On 18 December 2017 PNB announced allotment
of 29.76 crore equity shares to successful eligible qualified institutional buyers at a
price of Rs 168 per share. Earlier PNB on 14 December 2017 announced the closure
of the qualified institutions placement (QIP) of equity share. The bank raised Rs 5000
crore from the QIP.The Board of the Directors of PNB at its meeting held on 6
February 2018 accorded approval for Capital Infusion by Government of India up to
Rs 5473 crore.On 14 February 2018 PNB informed the stock exchanges of detection
of a massive fraud of Rs 11394.02 crore. On 12 February 2018 on the basis of
investigation report total fraud of Rs 11394.02 crore (about USD 1771.69 million) in
case of unauthorized issuance of Letters of Undertakings Foreign Letter of Credits
and Inland Letter of Guarantees in the group accounts of Nirav Modi Group and M/s
Gitanjali Group and in the account of M/s. Chandri Paper & Allied Products Pvt. Ltd.
was reported to RBI. Later on 26 February 2018 PNB informed the stock exchanges
that the quantum of reported unauthorized transactions can increase by about USD
204.25 million.

PUNJAB NATL.BANK - COMPANY INFO

Nominee (RBI) : Rabi N Mishra
Director(PartTime NonOfficial) : Mahesh Baboo Gupta
Company Secretary : Balbir Singh.
Chairman (Non-Executive) : Sunil Mehta
Managing Director & CEO : Sunil Mehta
Nominee (Govt) : Ravi Mital
Executive Director : Lingam Venkata Prabhakar
Independent Director : Asha Bhandarker
Director (Shareholder) : Sanjay Verma
Executive Director : Agyey Kumar Azad
Suri & Co/SPMG & Co/MKPS &
AUDITOR :
Associates
IND NAME : Banks - Public Sector
HOUSE NAME : Government of India - PNB
vision:-
To promote fair banking practices by maintaining transparency in various products and
services offered to make banking an enriching experience.
how to work retail banking:-

ow Retail Banks Work

Retail banks use the depositors' funds to give out loans. They make
money by charging higher interest rates on loans than they pay on
deposits.

The Federal Reserve, the nation's central bank, regulates most retail
banks. Except for the smallest banks, it requires all other banks to keep
around 10 percent of their deposits in reserve each night. They are free
to lend out the rest. At the end of each day, banks that are short of the
Fed's reserve requirement borrow from other banks to make up for the
shortfall. The amount borrowed is called the fed funds. Retail banking
encompasses the services offered to consumers by commercial banks.
The term "retail" refers to the almost storefront-shopping nature of
commercial banking services.

Most commercial banks have extensive retail banking services and

products to reach a wide consumer base.

Here's a brief story about Bob's day at his bank XYZ. He arrives at the
bank one day to deposit a $2000 paycheck into his account. He decides
to deposit $1000 of the paycheck into his existing checking account.
The other $1000 he decides to use to open a savings account. Bob sits
with a bank representative who explains the various savings account
options and helps him with opening an account once he's made a
decision.

Additionally, the account representative informs Bob of retirement plans

the bank offers as well as educational savings plans for his children.
Before he leaves, Bob also takes information on auto loans offered by
the bank since he is considering purchasing a new car. While at the
bank, Bob was able, in one place, to deposit money, open a savings
account and find information relating to banking products he may need
in the future.
characteristics:-

Retail banking is, however, quite broad in nature – it refers to the dealing of
commercial banks with individual customers, both on liabilities and assets sides of the
balance sheet. Fixed, current / savings accounts on the liabilities side; and mortgages,
loans (e.g., personal, housing, auto, and educational) on the assets side, are the more
important of the products offered by banks. Related ancillary services include credit
cards, or depository services.

Retail banking refers to provision of banking services to individuals and small

business where the financial institutions are dealing with large number of low value
transactions. This is in contrast to wholesale banking where the customers are large,
often multinational companies, governments and government enterprise, and the
financial institution deal in small numbers of high value transactions.

Consumer Banking Focus

Most retail banks focus on the needs of consumers versus commercial
account holders. Teller cages are most often dedicated to walk-in consumer
patrons. Retail bank tellers are trained to focus on consumer checking and
savings needs. Branch managers are trained to offer customer-service issues
in regards to those accounts. Commercial account transactions are typically
limited to on to two separate stations dedicated to merchant accounts.

Internal Promotions to Cross-Sell Services

Retail banks utilize their internal and external space to promote and cross-sell
services. Inside of the bank, customers will see standing floor signs to
promote interest rates on mortgages and savings accounts. Desks that house
deposit slips are typically topped with brochures about various checking and
savings instruments. Tellers might even wear a badge or button that states
“ask me about …” to promote new services.

CRM Practices
Customer Relationship Management (CRM) techniques are growing in
application among most major retail banks. Websites assist and guide current
and prospective customers to branch locations. Site visitors are offered the
opportunity to provide feedback about their online banking experiences as
well as their on-site banking experiences. Retail banks use this information to
track and monitor customer satisfaction, gauge the feasibility for new products
and services, and to identify areas for improvement of the customer service
experience inside of branches.

Extended Hours, Services, Locations

Retail banks are often governed by state banking regulations in terms of
hours of operation. Banks deploy savvy strategies to make sure that no
opportunity is missed to service customers. Most understand that customer’s
hours may not match bank hours. As a result, most retail banks have ATM
machines that can accommodate every banking need from making a deposit
and inquiring about account balances, to transferring funds between checking
and savings accounts. Banks are now also offering their services inside of
major grocery stores, retail super stores, gas stations and convenience
stores, to make their services accessible on a 24-hour basis so customers
have “touch point” access to retail banking services near where they work, live
and shop.

New Customer Incentives

Retail banks have a major marketing mission to increase new customers.
They utilize many advertising tactics and strategies to achieve their new
customer goals. This often includes broadcast television and radio
advertising, print and magazine advertising, and public relations efforts to
sponsor national and local events. Some retail banks will provide a cash
reward up to several hundred dollars to open a new account. The overall goal
is to increase new accounts, among both prospective and existing customers.
Banks capture information to rate and rank new customers via information
furnished on credit applications to assess credit worthiness and approve new
account applications.
• Retail banking aims at doing banking business in large volume of transactions
involving low value.
• The retail banking portfolio includes deposits and assets linked products as well as
other financial services provided to individuals for personal consumption.
Retail banking business is an attractive market segment with opportunities for growth
and profits.
• It provides an opportunity to banks to diversify their asset portfolio. Since loans are
given to a large number of consumers and transactions have very low value, the risk
of NPA is reduced because all the consumers do not make default in making loan
repayment at a time.
• Retail banking is based on the maxim “do not keep all the eggs in one basket”
research and methodology

OBJECTIVES:-

India strives for economic development, and it has done so since it gained
its independence from Europe in 1947. Its commitment to growth became
most pronounced when, in 1990, it chose to shift from a government-
controlled banking system to a privately controlled banking system for the
overall good of the economy. Now, retail banks in India work to further the
same growth-oriented objectives.

Stimulate the Indian Economy

While the Indian economy is steadily growing, poverty is still widespread.
Since banks thrive in an economically healthy environment, they have a
vested interest in promoting the health of the citizens in their market. One of
the approaches that Indian banks use to stimulate the Indian economy
includes providing access to financial services that could help citizens create
jobs, access education and develop skills.

India strives for economic development, and it has done so since it gained
its independence from Europe in 1947. Its commitment to growth became
most pronounced when, in 1990, it chose to shift from a government-
controlled banking system to a privately controlled banking system for the
overall good of the economy. Now, retail banks in India work to further the
same growth-oriented objectives.

Tailor Services to Indian Consumers

As of July 2010, India had more than one billion inhabitants. This means
India has the second largest population in the entire world. About 82 percent
of India's one-billion-plus inhabitants--about 948,000,000 people--practice
Hinduism. Hinduism has an estimated 330,000 deities, and worshipers of
these deities make donations to them. Retail banks meet India’s religious
demands by providing their religious consumers with convenient ways to
make online donations to their deity or deities of choice.

Stimulate the Indian Economy

While the Indian economy is steadily growing, poverty is still widespread.
Since banks thrive in an economically healthy environment, they have a
vested interest in promoting the health of the citizens in their market. One of
the approaches that Indian banks use to stimulate the Indian economy
includes providing access to financial services that could help citizens create
jobs, access education and develop skills.

India has about 600,000 villages, many of which remain financially

underserved. Providing financial services to these villages and educating
their inhabitants about the proper use of those services furthers the objective
of stimulating the Indian economy.

Serve the Growing Population of Wealthy Citizens

Every year since 1997, India's economy consistently grew by about seven
percent. India's percentage of high-net-worth individuals is slated to grow at
a rate that is among the highest of any other nation in the world. For banks,
growing wealth means a growing need for car loans, mortgages, credit cards
and wealth management services. Indian retail banks aim to meet these
needs by providing a variety of innovative services.

Be a One-Stop Shop for Consumers

Retail banks in India recognize that if they want to remain competitive, they
must reduce the need for clients to jump from bank to bank to have various
needs met. They do this by expanding their number of locations and
improving their technology. The aim is to become a one-stop shop so that
they can provide their customer with the convenience that she is unable or
unwilling to do without.
Mission
"Creating Value for all its customers,Investors and Employees for being the first choice for all
stakeholders"
Vision
"To position PNB as the `Most Preferred Bank` for customers, the `Best Place to Work In` for
employees and a `Benchmark of Excellence` for the industry"
Fired by the spirit of nationalism and founded on the idea that Indians should have a national bank
of their own, Punjab National Bank Ltd was the result of the efforts of far-sighted visionaries and
patriots, among whom were persons like Lala Lajpat Rai, Mr. E C Jessawala, Babu Kali Prasono Roy,
Lala Harkishan Lal and Sardar Dyal Singh Majithia. Incorporated under the Act VI of 1882, Indian
Companies Act, the Bank commenced operations on April 12, 1895 from Lahore, with an
authorised total capital of Rs 2 lac and working capital of Rs 20,000. Prophetically, the Bank chose
"Stability" as its telegraphic address, as the future course of events were to prove - the Bank
withstood various financial crises including the trauma in the form of partition of India when the
Bank had to close 92 offices (33%) in west Pakistan which constituted 40% of its deposits and 15
of its staff fell victims to the frenzy. The registered office was shifted to Delhi and the Bank
honoured all the deposit claims of the refugees even on the basis of whatever little evidence they
could produce. Subsequently, the Bank registered impressive performance and grew from strength
to strength.
A pioneer throughout, the Bank distinguished itself by appointing auditors in 1895 long before it
was mandatory; introduced the "teller" system in 1944 (another first ); established profit sharing
bonus, provident fund and voluntary outside audit well before they formed keystones of good
management.
Nationalisation came in 1969 which unleashed a new chapter in the long history of the Bank.
Keeping with the economic ideology of catalyzing development and amelioration of poverty by
funding various self-employment schemes, PNB expanded its presence rapidly in unbanked areas.
The Bank donned the role of a facilitator in providing the vital input of credit and consistently
exceeded the national goals in respect of priority sector lending. With its large presence
throughout the country and with a view to strengthening the rural credit delivery system, the Bank
sponsored Regional Rural Banks (RRBs).
PNB has established itself firmly as one of the premier banking institutions in the country with a
long tradition of sound and prudent banking. The bank`s growth has been aided by take-
over/merger of 7 private sector banks during different periods in its history. The first ever and the
only merger of a nationalized bank with PNB was in 1993, viz., New Bank of India.
By late 1980s when the first whiff of liberalization came about, the Bank initiated strategic moves
towards diversification; and in 2002, 20% of government ownership was disinvested through a
very successful IPO to the public. In 2003, the erstwhile Nedungadi Bank Ltd (e-NBL), a Kerala
based private bank was amalgamated with Punjab National Bank. This was the seventh merger in
PNB’s history of more than 115 years. PNB’s management team has been quite successful in
managing the mergers and ensuring the integration process in a smooth and effective manner. It
may be added that no other bank in the nationalized bank group has a track-record of so many
mergers. This has improved the franchise value of the Bank, particularly, in the relatively
underrepresented Kerala region. In order to meet future capital requirements on account of
implementation of Basel II norms, in March 2005, the Bank came out with Follow-on Public Offer
(FPO) through the book building process, reducing the shareholding of Govt of India to 57.8%.
Punjab National Bank with more than 5400 domestic offices including Extension Counters has the
largest network amongst the nationalized banks i.e. next only to SBI. The bank has a strong
franchise value and provides a host of financial products and services, both to the retail customer
and corporate business. It has continued to fulfill its social responsibilities and made significant
progress in adoption of technology, keeping with its objective of transforming itself into a techno-
savvy Bank.
During 2008-09, the Bank achieved the landmark of becoming the largest Nationalized Bank to
bring ALL BRANCHES/EXTENSION COUNTERS into Core Banking Solution (CBS). The strong
franchise enjoyed by the Bank, combined with its technological capabilities provides the Bank
competitive advantages.
The Bank also continues to discharge its social obligations and addresses environmental concerns
with added vigour, which include free medical camps, distribute artificial limbs, tree plantation
and blood donation camps, besides donations to Hospitals, Schools etc. The Bank supports various
societies, charitable institutions and NGO /organisations working for the benefit of downtrodden,
weaker sections of society, orphans, underprivileged, spastics, handicapped, mentally retarded
children, women in shelter homes, etc. The Bank also contributes for fighting diseases like
diabetes, tuberculosis, AIDS, leprosy etc. Donations are also extended for purchase of water
coolers, ambulances and building infrastructure facilities at hospitals/schools.