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GROUP 5

Arpit Kulshreshtha
Peeyush Mittal
Sukhvinder Singh
Deogan
Rohit Ghosh
Rishi Malhotra

OVERVIEW OF BANKING
SECTOR
The Indian Banking industry is currently worth Rs.
(US $ 1.31 trillion)

81 trillion

The Indian banking sector consists of 26 public sector


banks, 20 private sector banks and 43 foreign banks along
with 61 regional rural banks (RRBs) and more than

90,000

credit cooperatives.

Bank deposits have grown at


a compound annual growth
rate (CAGR) of 21.2 per cent
over FY0613. Total deposits
in FY13 were US$ 1,274.3
billion.

Over the next decade, the


banking sector is projected
to create up to two million
new jobs

PUNJAB NATIONAL BANK


Established in
Lahore

1895 at

The bank was


nationalized in

1969

50

July

More than
renowned international
banks maintain their
Rupee Accounts with
PNB.

Largest branch network

4668 Offices
including 432Extension
inIndia -

Counters spread throughout


thecountry
Strongcorrespondentb
ankingrelationshipswi

217

thmorethan
international banksof
theworld.

NATURE OF ACTIVITIES AND


SERVICES PROVIDED
Corporateandpersonalbanking.
Industrialfinance and Agriculturalfinance.
Financing of trade and International banking.
Internetbankingservicestothecustomerslike booking of
tickets, payment of bills of utilities, purchase of airline
tickets etc.
PNB provides its customers online assistance by providing
i-banking, online complaints, providing them information
about various products and services.
The bank hasalso entered the credit card & debit card
business; bullion business; life andnon-life insurance
business; Gold coins & asset managements business etc.
Various Merchant Banking activities and Wealth
management services are also provided by the bank to its
clients.

CHALLENGES FACED BY PNB


Manual processes of collecting, storing, and
analysing business data which were costly.
Its retail branches were not connected and it was
difficult for management to understand business
drivers and impediments.
The bank used seven differentsoftware, which
ranon13 different flavors ofUNIX, on
standalonePCs.The500
oddbrancheswerenotnetworkedandonly35
percent of the bank's business was computerized.
The overall expertise in IT among users was low
The Central Vigilance Commission (CVC) issued a
directive to the bank to computerize at least 70
percent of its business

Variousfactorswhichcausedabarrieri
n
implementinganInformationSystemfo
rcentralizedbanking were:
Different Unix OS used indifferent
branches.
Differentstandalonefinancialapplicationso
nPCsatdifferent branches.
Lack of interoperability due to disparity
insystems.
Limited expertise on the software packages
currently deployed.
Most branches did not have a proper LAN in
place.

PNB chose a product from a company called Nelito. It was


a DOS-based, 'Partial BranchAutomation'application.
Standaloneversionswerechosensincethere weren't
LANs in place, and deployment of LANs at branches
would take so long that the CVC deadline couldn't be
met.
The interface was simple in design, and thus easy for the
bankpersonnel to us

30 March
2001, The bank
On

Infosys trained 200odd personnel from


acore team over six
months.

used the services of


Infosys for the
deployment ofFinacle.To consolidate all its business
resources, sustain the bank's
future growth and also to
create its own network.

PNBpurchasedservers,securityi
nfrastructure,
andstorageequipment and
decided to house it in its data
centers. A lot of infrastructure
from Cisco has been used.

The bank
continued to
spread the
technology
to more of
its branches
and centers.

The adoption of Core Banking Solution ensured


Standardization ofproducts.
Enabled quick launch ofthe newand innovative financial
products ensuring sufficient lead time to market it.
It offered seamless platform for integrating various such
initiatives and also
reducesthecostoftransaction,therebyofferingfinancialprodu
ctsatan affordable cost.

On May27,2004,
PunjabNationalBank(PNB)hasintroduced
LoansandAdvances Data Desk for Evaluations and Reports,
(LADDER), a computerized managementinformationsystem
for rationalizationofreturns,asset classification and
provisioning, credit monitoring and NPAmanagement.

Straight to Processing (STP)


The biggest advantage of STP is that if a person with an
account in Delhi deposits a cheque in Chennai, his account in
Delhi gets updated the same day.
Bank-mate
A bilingual software which can generate reports in
Hindi and also can get his/her passbook in Hindi.

RECOMMENDATIONS
The bank must update Hardware to get
maximum performance from Information
Systems in order to allow the IS to procure the
least amount of system resources it requires
for functioning.
The bank should update all their software,
networks etc. to keep information system up
to date for competitive edge, customer
satisfaction.
Steps should be taken to increase the safety &
to avoid the unethical practices like phishing.
Need for improved training for using
Information Technology and tools to
employees.
Intra firm communication should be improved.