A

SUMMER TRAINING REPORT

ON

‘’CUSTOMER SATISFACTION OF PNB BANK’’

Submitted in partial fulfillment of the requirement for the award of Degree of

Master in Business Administration (Session 2019-21)

M.B.A. 3rd Semester

SUBMITTED BY
Manu Saini

Class Roll No. 55

University Roll No. 8068167

SUBMITTED TO:

UNIVERSITY SCHOOL OF MANAGEMENT

KURUKSHETRA UNIVERSITY, KURUKSHETRA
HARYANA- 136119 (INDIA)
 PREFACE

In an institute, a student learns about theoretical concepts. But in the present day scenario,
environment, surrounding the business is complex, dynamic and the industries are so much
diversified and specialized that it requires the managers to be wholesomely nourished with
knowledge and skills in the respective field of specialization. Exposure is the key in building
good future managers.

This research project is the result of my hard work. Research project is an integral part of
Masters of Business Administration and its aims at providing the real life experience of the
industry to the students. The practical experience helps the student to view the real business
world closely, which in turn widely influences their conception and perception.

It provides the basic skill required to perform the survey and statistics tool needed to analyze the
data. Research project is an integral part curriculum and its purpose is providing the student with
the practical exposure today changes scenario. It helps in the development of the practical skill
and the analytical skill and analytical thinking process.

I
 ACKNOWLEDGMENT

Every result arrived at is a modest beginning for a higher goal. My work in the same
spirit is just a step in the ladder. It is a drop of ocean. No work can be turned as a one man show.
It needs the close cooperation of friends, colleagues and the guidance of experts in the field to
achieve something worthwhile and substantial.

I am heartily thankful to all the persons who spared their valuable time and helped me a lot in
preparation of this project report. There are many people behind making of this report, without
their help and guidance, this report would never be made possible.

First, I would like to express my sincere thanks to Mr. Jai Prakash Singh Khattar (Branch
Manager of PNB bank) and our institution for giving me this golden opportunity. I am greatly
thankful to him for giving me proper guidance and cooperation for making this report more
meaningful.

Finally, I am very much thankful to my parents for their support and valuable help. I also express
my thanks to my loving friends for their co-operation and help during my work.

II
 DECLARATION

I, undersigned MANU SAINI student of MBA 3rd semester declare that I have done the project
on ‘’Customer Satisfaction Of Punjab National Bank’’ has been personally done by me
and In partial fulfillment of MBA program during academic year 2019-21. The matter embodied
in this Report has not been submitted earlier for the award of any degree or diploma to the best
of my knowledge & belief.

Manu Saini

III
 EXECUTIVE SUMMARY

This project at Punjab National Bank was undertaken during the period of Two months as part of
my summer training.

As part of summer training, I was made to accompany customer relationship officer to observe
client interaction, gauge the level of satisfaction by listening and solving queries of existing
clients also helped in making new clients.

My Summer Training included the following: -

 An In-depth Induction through the Computer Based Training Module

 Learning the Basics of the various Banking Operations such as – Procedure of Opening
New Account (Savings, Current), Printing and Updating of Passbook, procedure of
opening a F.D., deposits and withdrawals, issuing of ATM Cards and internet banking
passwords etc.
 Punjab National Bank is providing maximum amount of loan among PSB‘s
 Various Documents necessary or required at the time of Opening of Account and
Sanctioned of Loan
 Accompanying Customer Relationships Officer to observe client interaction
During the course of my training, I got valuable insights about the working in a bank branch,
internet banking and client interface.

IV
 TABLE OF CONTENT

Organization certificate I.
Preface II.
Acknowledgement III.
Declaration IV.
Executive summary V.
S. No. Chapter Name Page No.
1. Industry Profile 1-5

2. Company Profile 6-15

3. Introduction to the topic 16-22

4. Research Methodology 23-29

I. Objective of the Study

II. Research Design
III. Method of data collection
IV. Sampling Design
V. Scope of study
VI. Limitation of Study
5. Analysis And Interpretation 30-40

6. Finding,, Suggestion 41-43

7. Conclusion 44-45

Bibliography/ References 46

Appendix 47-49

V
 CHAPTER-1

INDUSTRY PROFILE

1
INTRODUCTION TO BANKING IN INDIA

The banking section will navigate through all the aspects of the Banking System in India. It will
discuss upon the matters with the birth of the banking concept in the country to new players
adding their names in the industry in coming few years. The banker of all banks, Reserve Bank
of India (RBI), the Indian Banks Association (IBA) and top 20 banks like IDBI, HSBC, ICICI,
ABN AMRO, etc. has been well defined under three separate heads with one page dedicated to
each bank. However, in the introduction part of the entire banking cosmos, the past has been well
explained under three different heads namely:

 History of Banking in India

 Nationalization of Banks in India
 Scheduled Commercial Banks in India

HISTORY OF BANKING IN INDIA

Without a sound and effective banking system in India it cannot have a healthy economy. The
banking system of India should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factors. For the past three
decades India's banking system has several outstanding achievements 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 first bank in India, though conservative,
was established in 1786. From 1786 till today, the journey of Indian Banking System can be
segregated into three distinct phases. They are as mentioned below: • Early phase from 1786 to
1969 of Indian Banks • Nationalization of Indian Banks and up to 1991 prior to Indian banking
sector Reforms. • New phase of Indian Banking System with the advent of Indian Financial &
Banking Sector Reforms after 1991.

2
SCHEDULED COMMERCIAL BANKS IN INDIA

The commercial banking structure in India consists of:

• Scheduled Commercial Banks in India

• Unscheduled Banks in India Scheduled Banks in India

constitute those banks which have been included in the Second Schedule of Reserve Bank of
India (RBI) Act, 1934. RBI in turn includes only those banks in this schedule which satisfy the
criteria laid down vide section 42 (6) (a) of the Act. As on 30th June, 1999, there were 300
scheduled banks in India having a total network of 64,918 branches. The scheduled commercial
banks in India comprise of State bank of India and its associates (8), nationalized banks (19),
foreign banks (45), private sector banks (32), co-operative banks and regional rural banks.
"Scheduled banks in India" means the State Bank of India constituted under the State Bank of
India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary
Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under
section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40
of 1980), or any other bank being a bank included in the Second Schedule to the Reserve Bank
of India Act, 1934 (2 of 1934), but does not include a co-operative bank". "Non-scheduled bank
in India" means a banking company as defined in clause (c) of section 5 of the Banking
Regulation Act, 1949 (10 of 1949), which is not a scheduled bank".

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

• State Bank of India

• State Bank of Bikaner and Jaipur
• State Bank of Hyderabad
• State Bank of Indore
• State Bank of Mysore
• State Bank of Saurashtra
• State Bank of Travancore
• Andhra Bank

3
 • Allahabad Bank
• Bank of Baroda
• Bank of India
• Bank of Maharashtra
• Canara Bank
• Central Bank of India
• Corporation Bank
• Dena Bank

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

• ING Vysya Bank Ltd

• Axis Bank Ltd
• Indusind Bank Ltd
• ICICI Bank Ltd
• South Indian Bank
• HDFC Bank Ltd
• Centurion Bank Ltd
• Bank of Punjab Ltd
• IDBI Bank Ltd

The following are the Scheduled Foreign Banks in India:

• American Express Bank Ltd

• ANZ Gridlays Bank Plc
• Bank of America NT & SA
• Bank of Tokyo Ltd.
• Banquc Nationale de Paris
• Barclays Bank Plc
• Citi Bank N.C.
• Deutsche Bank A.G.
• Hongkong and Shanghai Banking Corporation
• Standard Chartered Bank.

4
BANKING SERVICES IN INDIA

With years, banks are also adding services to their customers. The Indian banking industry is
passing through a phase of customers market. The customers have more choices in choosing
their banks. A competition has been established within the banks operating in India. With stiff
competition and advancement of technology, the services provided by banks have become more
easy and convenient. The past days are witness to an hour wait before withdrawing cash from
accounts or a cheque from north of the country being cleared in one month in the south. This
section of banking deals with the latest discovery in the banking instruments along with the
polished version of their old systems.

5
 CHAPTER-2

COMPANY PROFILE

6
INTRODUCTION OF PNB

Punjab National Bank of India, the first Indian bank started only with Indian capital, was
nationalized in July 1969 and currently the bank has become a front-line banking institution in
India with 4525 Offices including 432 Extension Counters. The corporate office of the bank is at
New Delhi. Punjab National Bank of India has set up representative offices at Almaty
(Kazakhistan), Shanghai (China) and in London and a full fledged Branch in Kabul
(Afghanistan). Punjab National Bank with 4497 offices and the largest nationalized bank is
serving its 3.5 crore customers with the following wide variety of banking services:

• Corporate banking
• Personal banking
• Industrial finance
• Agricultural finance
• Financing of trade
• International banking

Punjab National Bank has been ranked 38th amongst top 500 companies by The Economic
Times. PNB has earned 9th position among top 50 trusted brands in India. Punjab National Bank
India maintains relationship with more than 200 leading international banks world wide. PNB
India has Rupee Drawing Arrangements with 15 exchange companies in UAE and 1 in
Singapore.

HISTORY OF THE BANK

Punjab National Bank (PNB) was registered on May 19, 1894 under the Indian Companies Act
with its office in Anarkali Bazaar Lahore. The Bank is the second largest government-owned
commercial bank in India with about 4,500 branches across 764 cities. It serves over 37 million
customers. The bank has been ranked 248th biggest bank in the world by Bankers Almanac,
London. The bank's total assets for financial year 2007 were about US$60 billion. PNB has a
banking subsidiary in the UK, as well as branches in Hong Kong and Kabul, and representative
offices in Almaty, Dubai, Oslo, and Shanghai.

7
• 1895: PNB commenced its operations in Lahore. PNB has the distinction of being the
first Indian bank to have been started solely with Indian capital that has survived to the
present. (The first entirely Indian bank, the Ouch Commercial Bank, was established in
1881 in Faizabad, but failed in 1958.) PNB's founders included several leaders of the
Swadeshi movement such as Dyal Singh Majithia and Lala HarKishen Lal,[1] Lala
Lalchand, Shri Kali Prosanna Roy, Shri E.C. Jessawala, Shri Prabhu Dayal, Bakshi Jaishi
Ram, and Lala Dholan Dass. Lala Lajpat Rai was actively associated with the
management of the Bank in its early years.
 1904: PNB established branches in Karachi and Peshawar
 1940: PNB absorbed Bhagwan Dass Bank, a scheduled bank located in Delhi circle.
 1947: Partition of India and Pakistan at Independence. PNB lost its premises in Lahore,
but continued to operate in Pakistan.
 1951: PNB acquired the 39 branches of Bharat Bank (est. 1942); Bharat Bank became
Bharat Nidhi Ltd.
 1961: PNB acquired Universal Bank of India.
 1963: The Government of Burma nationalized PNB's branch in Rangoon (Yangon).
 September 1965: After the Indo-Pak war the government of Pakistan seized all the offices
in Pakistan of Indian banks, including PNB's head office, which may have moved to
Karachi. PNB also had one or more branches in East Pakistan (Bangladesh).
 1960s: PNB amalgamated Indo Commercial Bank (est. 1933) in a rescue.
 1969: The Government of India (GOI) nationalized PNB and 13 other major commercial
banks, on July 19, 1969
 1976 or 1978: PNB opened a branch in London.
 1986 The Reserve Bank of India required PNB to transfer its London branch to State
Bank of India after the branch was involved in a fraud scandal.
 1986: PNB acquired Hindustan Commercial Bank (est. 1943) in a rescue. The acquisition
added Hindustan's 142 branches to PNB's network.
 1993: PNB acquired New Bank of India, which the GOI had nationalized in 1980.
 1998: PNB set up a representative office in Almaty, Kazakhstan.

8
 2003: PNB took over Nedungadi Bank, the oldest private sector bank in Kerala. Rao
Bahadur T.M.Appu Nedungadi, author of Kundalatha, one of the earliest novels in
Malayalam, had established the bank in 1899. It was incorporated in 1913, and in 1965
had acquired selected assets and deposits of the Coimbatore National Bank. At the time
of the merger with PNB, Nedungadi Bank's shares had zero value, with the result that its
shareholders received no payment for their shares PNB also opened a representative
office in London.
 2004: PNB established a branch in Kabul, Afghanistan. PNB also opened a representative
office in Shanghai. PNB established an alliance with Everest Bank in Nepal that permits
migrants to transfer funds easily between India and Everest Bank's 12 branches in Nepal.
 2005: PNB opened a representative office in Dubai.
 2007: PNB established PNBIL - Punjab National Bank (International) - in the UK, with
two offices, one in London, and one in South Hall. Since then it has opened a third
branch in Leicester, and is planning a fourth in Birmingham. Gatin Gupta became
Chairmen of Punjab National Bank.
 2008: PNB opened a branch in Hong Kong.
 2009: PNB opened a representative office in Oslo, Norway.

9
 ACHIEVEMENTS
 Punjab National Bank announced its Q1FY2010 results on 29 July 2009, delivering 62%
y-o-y growth in net profits to Rs832 crore (Rs512cr), substantially ahead of expectations
on account of large treasury gains, apart from healthy operating performance.

 While the bank‘s deposit growth was reasonably robust at 4.4% sequentially and 26.5%
y-o-y, unlike the peers its growth in advances also remained strong at 38% y-o-y.
 In spite of being at the forefront of PLR cuts, the bank posted a healthy growth in Net
Interest Income (NII) of 29% y-o-y.

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

 Operating expenses were higher than expected on account of Rs150 crore of provisions
for imminent wage hikes.

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

10
 Board of the Director

SI. No. Name of the Constitution

Committee
1. Management Shri CH. S. S. Mallikarjuna Rao MD&CEO, Chairman
Committee Dr. R. K. Yaduvanshi Executive Director
Shri L.V. Prabhakar Executive Director
Shri A. K. Azad Executive Director
Shri Vivek Aggarwal Director
Dr. Asha Bhandarker Director
2. Audit Committee of Shri Sanjay Verma Director, Chairman
the Shri L.V. Prabhakar Executive Director
Board Shri Pankaj Jain Director
Shri Vivek Aggarwal Director
Invitees : Dr. R. K. Yaduvanshi Executive Director
Shri A. K. Azad Executive Director
3. Risk Management Shri Sunil Mehta Director, Chairman
Committee Shri CH. S. S. Mallikarjuna Rao MD&CEO
Dr. R. K. Yaduvanshi Executive Director
Shri L.V. Prabhakar Executive Director
Shri A. K. Azad Executive Director
Dr. Asha Bhandarker Director
4. Share Transfer Shri CH. S. S. Mallikarjuna Rao MD&CEO, Chairman
Committee Shri L.V. Prabhakar Executive Director
Dr. Asha Bhandarker Director

5. Stakeholder Dr. Asha Bhandarker Director- Chairman

relationship Shri L.V. Prabhakar Executive Director
committee Shri A. K. Azad Executive Director

11
VISION AND MISSION

Vision

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

Mission

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

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

VALUES AND ETHICS

• Bonding and Integrity

• Ethical conduct
• Periodic disclosure
• Confidentiality and fair dealing
• Compliance with rules and regulation

PRODUCTS AND SERVICES

 Savings Fund Account

1. Total Freedom Salary Account
2. PNB Prudent Sweep,
3. PNB Vidyarthi SF Account,
4. PNB Mitra SF

12
 Account Current Account
1. PNB Vaibhav,
2. PNB Gaurav,
3. PNB Smart Roamer

 Fixed Deposit Schemes

1. Spectrum Fixed Deposit Scheme,
2. Anupam Account,
3. Mahabachat Schemes,
4. Multi Benefit Deposit

 Scheme Credit Schemes

1. Flexible Housing Loan,
2. Car Finance,
3. Personal Loan,
4. Credit Cards

 Social Banking
1. Mahila Udyam Nidhi Scheme,
2. Krishi Card,
3. PNB Farmers Welfare Trust

 Corporate Banking
1. Gold Card scheme for exporters,
2. EXIM finance

 Business Sector
1. PNB Karigar credit card,
2. PNB Kushal Udhami,
3. PNB Pragati Udhami,
4. PNB Vikas Udhami

13
Apart from these, and the PNB also offers locker facilities, senior citizens schemes, PPF
schemes and various E-services.

AWARDS AND DISTINCTIONS

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

Let‘s analyze SWOT in order to know as to where the company stands

14
 SWOT ANALYSIS

STRENGTH

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

WEAKNESS

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

OPPORTUNITIES

 Home to home banking services

 Diversification towards other fields
 Globalization

THREATS

 Stiff competition from SBI and other private players

15
 CHAPTER-3

CUSTOMER
SATISFACTION

16
 INTRODUCTION

Customer satisfaction refers to the extent to which customers are happy with the products and
services provided by a business. Customer satisfaction levels can be measured using survey
techniques and questionnaires .

DEFINITIONS: Definition

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

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

Definition 3: Customer satisfaction occurs when acquisition of products and/or services provides
a minimum negative departure from expectations when compared with other acquisitions.

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

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

BENEFITS OF CUSTOMER SATISFACTION

The importance of customer satisfaction and support is increasingly becoming a vital business
issue as organization realize the benefits of Customer Relationship Management (CRM) for
providing effective customer service. Professionals working within customer focused business or
those running call centers or help desks, need to keep informed about the latest customer
satisfaction techniques for running a valuable customer service function. From small customer

17
service departments to large call centers, the importance of developing a valued relationship with
customers using CRM is essential to support customer and long-term business growth.

What Do Customers Want?

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

 Expressed
 Implied

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

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

There are many reasons why customer expectations are likely to change overtime. Process
improvements, advent of new technology, changes in customer‘s priorities, improved quality of
service provided by competitors are just a few examples. The customer is always right.
Supplier‘s job is to provide the customer what he/she wants, when he/she wants it. Customer
satisfaction is customer‘s perception that a supplier has met or exceeded their expectations.

WHAT CONSTITUTES SATISFACTION?

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

 Product quality
 Premium Outflow

18
  Return on Investment
 Services
 Responsiveness and ability to resolve complaints and reject reports.
 Overall communication, accessibility and attitude.

WHAT ARE THE TOOLS?

Customer expectations can be identified using various methods such as: Periodic contract
reviews

 Market research
 Telephonic interviews
 Personal visits
 Warranty records
 Informal discussions
 Satisfaction surveys

Depending upon the customer base and available resources, we can choose a method that is most
effective in measuring the customer‘s perceptions. The purpose of the exercise is to identify
priorities for improvements. We must develop a method or combination of methods that helps to
continually improve service.

CUSTOMER SATISFACTION SURVEYS

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

 Defining Objectives of the Survey

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

19
There is no point in asking irrelevant questions on a customer satisfaction questionnaire. The
basic purpose is to find out what we are doing right or wrong. Where is the scope for
improvement, where do we stand vis-à-vis other suppliers. How we can serve the customer
better?

A customer satisfaction measurement survey should at least identify the following

objectives:

 Importance to customers (Customers priorities)

 Customer‘s perception of supplier‘s performance
 Your performance relative to customer‘s priorities.
 Priorities for improvement

Survey forms should be easy to fill out with minimum amount of time and efforts on customer‘s
part. They should be designed to actively encourage the customer to complete the questions. Yet
they must provide accurate data should also be sufficiently reliable for management decision
making. This can be achieved by incorporating objective type questions where customer has to
―rate‖ on scale of say 1 to 10. For repeated surveys, you could provide the rating that was
previously accorded by the customer. This works like a reference point for the customer.

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

Normally, we deal various personnel at various levels in the customer‘s organization— the
buyer, user, receiving inspector, finance and purchase person etc. surveying a number of
respondents for each customer gives a complete perspective of customer satisfaction. It may be
necessary to device a different questionnaire for each of them.

Respondents must be provided a way to express the importance they attach to various survey
parameters. Respondents should be asked to give a weighting factor, again on a rating scale of
say, 1 to 10, for each requirement. This gives a better indication of relative importance of each
parameter towards overall customer satisfaction and makes it easier for suppliers to prioritize

20
their action plans by comparing the performance rating (scores) with importance rating
(weighing).

CONSUMER RESEARCH IN DIFFERENT DISCIPLINES

A considerable body of literature exists on consumption, consumer behaviour and consumer

decision making process. Most of the consumer research focused on adopter categories, habits,
attitudes and intentions rather that on actually measuring the satisfaction level with the service.

CONSUMER SATISFACTION PROCESS

The paramount goal of marketing is to understand the customer and to influence buying
behaviour. The process can be depicted as follows:-

1. Need recognition- realization of the difference between the desired and the current
situation that serves as a trigger for entire process.
2. Search for information.
3. Pre purchase alternative evaluation.
4. Consumption(utilization of the procured option)
5. Post purchase alternative re-evaluation.
6. Divestment(disposal of the unconsumed product and it‘s remnants)

WAYS FOR MAINTAINING RELATIONS WITH THE CUTOMERS ADOPTED BY

PNB

The ability of the banking industry to achieve the socio-economic objectives and in the process
bringing more and more customers into its fold will ultimately depend on the satisfaction of the
customers. We have a strong belief that a satisfied customer is the foremost factor in developing
our business. A need was felt by us at Punjab National Bank that in order to become more
customers friendly the Bank should come out with Charter of its services for the customers.
Citizens' Charter concept was considered as a base instrument to fill this need and accordingly
this document was prepared.

21
This document was made in consultation with the users and highlights our Bank's commitments
towards the customer satisfaction, thus ensuring accountability and responsibility amongst its
officials and staff. This Code for customers not only explains our commitment and
responsibilities along with the redressed methods but also specifies the obligation on the part of
customers for healthy practices in Customer-Banker relationships. This is not a legal document
creating rights and obligations. The Code has been prepared to promote fair banking practices
and to give information in respect of various activities relating to customer service. We wish to
acknowledge the initiative taken by the Ministry of Finance, Government of India and Ministry
of Administrative Reforms and Public Grievances for encouraging us to bring out this Code. We
maintain constant consultations with our clientele through various Seminars, Customer Meets,
etc. to evaluate improve and widen the range of service to customer. However, all our customers
are requested to keep us informed of their experiences about the various services rendered by the
Bank and feel free to comment on this Code. We intend to bring it out in many Regional
Languages in subsequent years.

22
 CHAPTER-4

RESEARCH
METHODOLOGY

23
RESEARCH METHODOLOGY

 INTRODUCTION OF RESEARCH

The systematic investigation into and study of materials and sources in order to establish facts
and reach new conclusion

 INTRODUCTION OF RESEARCH METHODOLOGY

A research methodology or involves specific techniques that are adopted in research

process to collect, assemble and evaluate data. It defines those tools that are used to gather
relevant information in a specific research study. Survey, questionnaire and interviews are the
common tools of research.

 DEFINITION OF RESEARCH METHODOLOGY

The organized questioning and exploration either by hypothesis formation or scientific testing of
any inquisition or query by following a set of standard rules and procedures is defined as
research methodology.

 PROCESS OF RESEARCH METHODOLOGY:

1. Formulating the research problem

2. Developing the objective
3. Preparing the research design
4. Selecting a sampling design
5. Collection of data
6. Analysis and interpretation of data
7. Preparation of the report

24
  Statement Of Problem

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

 OBJECTIVE OF THE STUDY

 To have an insight into the attitudes and behaviors of customer.
 To find out the differences among perceived service and expected service.
 To produce an executive service report to upgrade service characteristics.
 To understand consumer‘s preferences.
 To access the degree of satisfaction of the consumers

 RESEARCH DESIGN-

The research design is a comprehensive master plan of the research study to be undertaken
accordance with the problem at hand is collected accurately and economically. Simply stated, it
is the framework, a blueprint for the research study which guides the collection and analysis of
data. The research design, depending upon the needs of the researcher may be a very detailed
statement only furnish the minimum, giving a general statement of the methods to be used. The
function of a research design is to ensure that requisite data in information required for planning
the research project.

 TYPES OF RESEARCH DESIGN-

1. Exploratory research design

2. Descriptive research design
3. Causal research design

25
  DESCRIPTIVE RESEARCH –

A descriptive design is conducted about research problem because information is earlier studies.
The focus is on gaining and familiarity later study or investigation.

The descriptive research involves systematic collection of information from respondents for the
purpose of understanding and or predicting some aspect of the behavior of the population.
Descriptive research is used to describe characteristics of a population or phenomenon being
studied.

 SAMPLING TECHNIQUE-

 MEANING OF SAMPLE:
A sample is a group of people, objects, or items that are taken from a larger population for
measurement. The sample should be representative of the population to ensure that we can
generalize the finding from the research sample to the population as a whole

 SAMPLE SIZE

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

 SAMPLING METHOD

A sample is a representative part of the population. In sampling technique, information is

collected only from a representative part of the universe and the conclusions are drawn on that
basis for the entire universe. A convenience sampling technique was used to collect data from the
respondents. It is a non-probability sample.

26
  DATA COLLECTION

This report depends upon primary as well as secondary sources which are as follows

 Primary source-
Primary sources provide a first –hand account of an event or time period and are considered to
be authoritative. They represent original thinking, report on discoveries or events, or they can
share new information. Often these sources are created at the time the events occurred but they
can also include sources that are created later. They are usually the first formal appearance of
original research.

 Observation
 Questionnaire
 Interacting with the senior executive.

 Secondary source:
Secondary sources involve analysis, synthesis, interpretation, or evaluation of primary sources.
They often attempt to describe or explain primary sources.

 Company website
 Books and magazines
 Internet

 METHOD OF DATA COLLECTION

To know the response, the researcher used questionnaire method. It has been designed as a
primary research instrument. Questionnaires were distributed to respondents and they were asked
to answer the questions given in the questionnaire. The questionnaires were used as an
instrumentation technique, because it is an important method of data collection.

27
The success of the questionnaire method in collecting the information depends largely on proper
drafting. So in the present study questions were arranged and interconnected logically. The
structured questionnaire will reduce both interviewers and interpreters bias. Further, coding and
analysis was done for each question‘s response to reach into findings, suggestions and finally to
the conclusion about the topic.

.NEED FOR THE STUDY

 The deeper the company understands of consumer‘s needs and satisfaction, the earlier the
product or service is introduced ahead of competition, the greater the expected
contribution margin. Hence the study is very important.
 This study will help companies to customize the service and product, according to the
consumer‘s need.
 This study will also help the companies to understand the experience and expectations of
the existing customers.

SCOPE OF THE STUDY

The study will be able to reveal the preferences, needs, satisfaction of the customers regarding
the banking services, It also help banks to know whether the existing products or services the are
offering are really satisfying the customers needs.

28
LIMITATIONS OF THE STUDY

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

1. Time Constraints:
The time stipulated for the project to be completed is less and thus there are chances that
some information might have been left out, however due care is taken to include all the
relevant information needed.
2. Sample size:
Due to time constraints the sample size was relatively small and would definitely have
been more representative if I had collected information from more respondents.
3. Accuracy:
It is difficult to know if all the respondents gave accurate information; some respondents
tend to give misleading information.

29
 CHAPTER-5

ANALYSIS AND
INTERPRETATION

30
 1. SHARE OF DIFFERENT TYPES OF ACCOUNTS
Table 1
SI. No. Nature of Accounts Number of % of Respondents
Respondents
1. Saving A/c 78 78%
2. Current A/c 9 9%
3. Fixed Deposits 4 4%
4. Loans 3 3%
5. Others 6 6%
Total 100 100

Classification based on nature of A/Cs

3%
4%
6%
9% Saving A/c
Current A/c
Fixed Deposits
78% Loans
Others

Interpretation

Table shows that 78% respondents have Saving A/Cs, and 9% have Current A/Cs and rest of the
respondents have 13% share of other A/Cs in total (which includes fixed deposits, loans, and
other products) This means most of the respondents are having Saving A/Cs share is most.

31
2. SATISFACTION OF RESPONDENTS WITH SERVICES OFFERED
BY PNB BRANCH
Table 2
SI. No. Response No. of Respondent % of Respondent
1. Satisfied 89 89%
2. Not Satisfied 11 11%
Total 100 100%

Classification based on satisfaction level of respondents

11%

Satisfied
Not Satisfied
89%

Interpretation:
From the above table it could be inferred that 89% of the consumers are satisfied with the
service and quality of products of their bank. Only 11% of consumers are not satisfied.
Most of the respondents are satisfied with the service offered by PNB.

32
3. RATINGS OF THE SERVICES OFFERED BY THE
RESPONDENT’S LIFE INSURANCE COMPANY
Table 3
SI. NO. Ratings No. of Respondents % of Respondents
1. Excellent 5 5%
2. Very Good 9 9%
3. Good 76 76%
4. Average 6 6%
5. Poor 4 4%
100 100%

Classification based on rating of the service offered by

PNB Branches

6% 4% 5% 9%
Excellent
Very Good
Good
Average
76%
Poor

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

33
4. TABLE SHOWING MOTIVE BEHIND THE SELECTING PNB
Table 4
Si. No. Attribute Score
1. Brand name 56
2. Customer service 30
3. Interest 12
4. Others 2
Total 100

56
60

50

Brand name
40
30 Customer services
30 Interest
Others
20 12

10 2

0
Motives

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

34
 5. CONSUMERS WILLINGNESS TO RECOMMEND THEIR LIFE
INSURANCE COMPANY TO OTHERS
Table 5
Si. No. Responses No. Of % Of Respondents
Respondents
1. Recommended 92 92%
2. Not Recommended 8 8%
100 100%

Classification based on the willingness to recommend

PNB branch services to other banks

Recommended
Not Recommended
92

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

35
 6. CONSUMERS WILLINGNESS TO SHIFT THEIR A/Cs TO OTHER
BANKS
Table 6
SI. No. Responses No. Of % Of Respondents
Respondents
1. Shift 8 8%
2. Doesn‘t shift 92 92%
Total 100 100%

Classification based on the willingness of respondents to

shift their A/Cs to other banks

8%

Shift
Doesn't shift
92%

Interpretation: From this table it can be noted that the majority of consumers (92%) doesn‘t
like to shift their A/Cs to other banks. The reason can be increasing customer satisfaction and
quality services offered by the bank.

36
7. Satisfaction of online banking
Table 7
Si. No. Responses % Of Respondents
1. Yes 77%
2. No 11%
3. Cannot Say 12%
Total 100%

ONLINE BANKLING

12%
11%

YES
NO
77% CANNOT SAY

Interpretation
From the sample 100 of 77% of respondents are satisfied with services related to online
banking but on other hand 11% of respondents are not at all satisfied with services of
online banking and around 12% of respondent can‘t say about online banking services.

37
 8. Service Quality Of PNB Bank
TABLE 8

Responses % of Respondents
Excellent 40%
Very Good 30%
Good 25%
Dissatisfied 5%
Total 100%

SERVICE QUALITY

5%
25% 40%
EXCELLENT
VERY GOOD
GOOD
30%
DISSATISFIED

Interpretation- Service Quality is a compassion of performance with expectations. If service

quality would be as per as customer requirement then customer will be delightful. As seen above
in the pie chart 49% respondents feel that service quality of the PNB is very good but on the
other hand 2% respondents feel that service quality is not up to the mark.

38
 9. Percentage of Male and female in sample population
Table 9
Male 60
Female 40
Total 100

Sample Population

40%

60% Male
Female

Interpretation: From the above graph we can observe the distribution of male females in our
sample. We can observe that there is majority of males rather than females in our sample as there
are 60 males in our sample and 40 females in our sample.

39
 10. How Quickly the banking problems solved by by your bank.
Table 10
Immediately Resolved 34
Within 24 Hours 45
Within 48 Hours 8
Within A Week 10
More Than A Week 3

Resolving Problem

10 3
8 34
immediately resolved
within 24
within 48
within a week
45
morethan a week

Interpretation: According to the survey conducted respondents are there whose problems have
been solved within 24 hours and are there whose problems have been resolved within 48% and
are there whose problems have been resolved by the bank in a week or more than a week.

40
CHAPTER-6

FINDING AND
SUGGESTIONS

41
 FINDINGS

 Due to the intense competition in the financial market, PNB should adopt better strategies
to attract more customers.
 PNB is not using any promotional strategy for product awareness which is highly
required.
 There is attention lacking where Return on investment company reputation and premium
outflow are most preferred attributes that are expected by the respondents.
 PNB does not have any consumer complaint or feerd back cell which is highly required
for customer retaining and satisfaction.
 Majority of PNB customers are visible for savings where as PNB requires current savings
or unit link savings to invested.
 PNB needs an efficient and experienced marketing force which can improve it‘s market
share.

42
 SUGGESTIONS& RECOMMENDATIONS

 With regard to banking products and services, consumers respond at different rates,
depending on the consumer‘s characteristics. Hence I PNB should try to bring their new
product and services to the attention of potential early adopters.
 Due to the intense competition in the financial market, PNB should adopt better strategies
to attract more customers.
 Return on investment company reputation and premium outflow are most preferred
attributes that are expected by the respondents. Hence greater focus should be given to
these attributes.
 PNB should adopt effective promotional strategies to increase the awareness level among
the consumers.
 PNB should ask for their consumer feedback to know whether the consumers are really
satisfied or dissatisfied with the service and product of the bank. If they are dissatisfied,
then the reasons for dissatisfaction should be found out and should be corrected in future.
 The PNB brand name has earned a lot of goodwill and enjoys high brand equity. As there
is intense competition, PNB should work hard to maintain its position and offer better
service and products to consumers.
 The bank should try to increase the Brand image through performance and service then,
only the customers will be satisfied.
 Majority of the people find banking important in their life, so PNB should employ the
strategies to convert the want in to need which will enrich their business.

43
CHAPTER-7

CONCLUSION

44
 CONCLUSION

The project entitled ―A STUDY TO UNDERSTAND THE CUSTOMERS SATISFACTION AT

PNB‖ has helped me in studying satisfaction about services and products offered to customers.
Since the opening up of the banking sector, private banks are in the fray each one trying to cover
more market share than the other.

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

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

45
References/Bibliography

 NEWSPAPER-
 The Economics Time

 REFERENCES BOOKS-
 Financial Management theory and practice by Prassanna Chandra
 C.R Kothari, ‘‘ Research Methodology methods and Techniques‘‘
 Dr. S.C. Gupta ‗‘Statistical Methods‘‘

 WEBSITES-
 Www. Google.com,
 www. Wikepedia.com
 www. Pnbindia.com
 www.Pnb.com
 www.Rbi.gov.in

46
 APPENDIX

1. SHARE Of DIFFERENT TYPES OF ACCOUNTS

 Saving a/c
 Current a/c
 Fixed deposits
 Loans
 Others

2. SATISFACTION OF RESPONDENTS WITH SERVICES OFFERED BY PNB BRANCH

 Satisfied
 Not Satisfied

3. RATINGS OF THE SERVICES OFFERED BY THE RESPONDENT‘S LIFE

INSURANCE COMPANY

 Excellent
 very good
 Good
 Average
 poor

4. TABLE SHOWING MOTIVE BEHIND THE SELECTING PNB

 Brand name
 Customer service
 Interest
 Others

47
5. CONSUMERS WILLINGNESS TO RECOMMEND THEIR LIFE INSURANCE
COMPANY TO OTHERS

 Recommended
 Not recommended

6. CONSUMERS WILLINGNESS TO SHIFT THEIR A/Cs TO OTHER BANKS

 Shift
 Doesn‘t shift

7. SATISFACTION OF ONLINE BANKING

 Yes
 No
 Cannot say

8. SERVICE QUALITY OF PNB BANK

 Excellent
 Very good
 Good
 Poor

9. PERCENTAGE OF MALE AND FEMALE IN SAMPLE POPULATION

 Male
 Female

48
10. RESOLVING PROBLEMS WITHIN TIME CONSTRAINTS

 Immediately
 Within 24 hours
 Within 48 hours
 Within a week
 More than a week

49