PNB has over 35 million customers and has been establishing its IT infrastructure since 2000. It implemented a core banking system in 2003 and now has over 400 ATMs on its network. PNB opted for an IT system to reduce costs, improve customer service through online banking and ATMs, and help manage its large business operations. However, it faces challenges in dealing with a multilingual population and improving its storage systems across its 2,700 branches. To address this, PNB implemented centralized core banking, built modules for government services and lockers, introduced bilingual software, and is implementing a data warehousing solution. IT has provided PNB benefits like reduced work pressures and increased profitability.
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PNB has over 35 million customers and has been establishing its IT infrastructure since 2000. It implemented a core banking system in 2003 and now has over 400 ATMs on its network. PNB opted for an IT system to reduce costs, improve customer service through online banking and ATMs, and help manage its large business operations. However, it faces challenges in dealing with a multilingual population and improving its storage systems across its 2,700 branches. To address this, PNB implemented centralized core banking, built modules for government services and lockers, introduced bilingual software, and is implementing a data warehousing solution. IT has provided PNB benefits like reduced work pressures and increased profitability.
PNB has over 35 million customers and has been establishing its IT infrastructure since 2000. It implemented a core banking system in 2003 and now has over 400 ATMs on its network. PNB opted for an IT system to reduce costs, improve customer service through online banking and ATMs, and help manage its large business operations. However, it faces challenges in dealing with a multilingual population and improving its storage systems across its 2,700 branches. To address this, PNB implemented centralized core banking, built modules for government services and lockers, introduced bilingual software, and is implementing a data warehousing solution. IT has provided PNB benefits like reduced work pressures and increased profitability.
Copyright:
Attribution Non-Commercial (BY-NC)
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Download as PPT, PDF, TXT or read online from Scribd
PNB has over 35 million customers and has been establishing its IT infrastructure since 2000. It implemented a core banking system in 2003 and now has over 400 ATMs on its network. PNB opted for an IT system to reduce costs, improve customer service through online banking and ATMs, and help manage its large business operations. However, it faces challenges in dealing with a multilingual population and improving its storage systems across its 2,700 branches. To address this, PNB implemented centralized core banking, built modules for government services and lockers, introduced bilingual software, and is implementing a data warehousing solution. IT has provided PNB benefits like reduced work pressures and increased profitability.
Copyright:
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BANK PROFILE Date of Establishment 1895 Public Background :Established in 1895 in Lahore, The bank has over 35 million customers through 4540 offices
including 421 extension counters. Chairperson - K R Kamath Business Operation: Bank Product Corporate: banking, Personal banking, Agricultural finance, Financing of trade, International banking, ATM/DEBIT. Financials Total Income - Rs. 305990.603 Million ( year ending Mar 2011) Revenue 6052.14 ( USD in Millions Corporate Address7 Bhikaiji Cama Place, , New Delhi110066, New Delhi.
PNBS IT Enabling Journey
In March 2000,
IT systems were Deployed only at 500-odd
branches. 35 percent of the bank's Business was computerized and a number of small software packages ran on standalone PCs. In 2003, PNB has 101 branches on a WAN, deployed a core banking infrastructure, and runs 175 networked ATMs. The Central Vigilance Commission (CVC) issued a directive to the bank to computerize at least 70 percent of its business by December 2000.
Why PNB opted for IT as its business tool
Firstly,
technology has the capacity to reduce the transaction cost to a great extent, plus it saves time. Secondly, it limits data entry time as replication, report generation etc, can be done automatically. Thirdly, it offers immense scope for improvement on the customer relationship front, as computers help deliver quick and enhanced value-added services to customers like smart cards, ATMs, Internet banking, etc. And lastly it also helps keep track of the business.
SWOT ANALYSIS Objective Analysis of PNB Strengths Wide network. Large no. of customers. Fast adaptability to technology Excellent training facilities. Providing better services
Weaknesses High gross NPA. Corruption and red tapism Slow decision making due to large hierarchy.
Opportunities Fast growing Indian economy. High growth in banking sector Liberal markets Micro financing
Threats Large no. of market players.
Competitive edge Changing culture
PNBS IT SETUP Networking hardware: The bank is using Cisco products (routers, switches) at the data centre for networking hardware. It has around 100 routers and 8-10 switches across the country, mainly from Cisco. Storage: PNB needs to have an effective storage system, but the data for all its 2,700 branches is still stored on PCs. The bank had now stored all its data on CD-ROMS by March 2003. It is also in the process of implementing a data warehousing solution called Ladders. PNB has opted for a Xeon server and UNIX operating system. Internet banking: PNB got a license from RBI to offer Internet banking services.
Security: The bank already appointed IDRBT as its security consultant.
PNB has hired Network Systems to implement the selected solution and is considering solutions like Firewall, Biometrics etc. WAN: the bank has a network of around 400 ATMs installed and this number is expected to grow very soon. PNBs customers will be able to use other banks ATMs and vice versa.
Problems in the case
Customers related problems. The bank need to deal with population that is multilingual.
Storage system related problems.
Solutions to the problems.
PNB implemented
centralized core banking solution at its eight branchessix in New Delhi and two in Mumbai. The no. of locations has increased to 12.PNB has a data centre at the corporate office. PNB handles huge number of government accountspublic provident fund, deposit of income tax, deposit of different duties and treasury payments. it also built a module for government businesses into this package. The 107-year-old bank, with around 7,000 locker holders, has also built a locker module in this package to benefit customers.
The PSU has also introduced a bilingual software known as Bank-mate. The software helps to generate reports in Hindi and also can give passbook in Hindi. PNB needs to have an effective storage system. The data for all its 2,700 branches is still stored on PCs, But the bank has now stored all its data on CD-ROMS by March 2003. It is also in the process of implementing a data warehousing solution called Ladders. All the data from the branches will be sent to the corporate office. For this , PNB has opted for a Xeon server and UNIX operating system.
Benefits of IT in PNB One of the biggest benefits are savings on recruitment. Work pressures have gone down five times. PNBs profitability has also increased. Increasing IT investments
will also bring a proactive and transparent monitoring and compliance environment within Banks.
CONCLUSION Banks in India are on IT to improve services. There has been regulatory focus on risk management.
Increasing IT investments will also bring a monitoring of banking
systems by various government regulatory bodies eg. state legislature & state banking authorities. IT initiatives are expected to bring substantial business benefits across both top-line and bottom-line. These are good time for the Banking industry in terms of gaining customer confidence and using technologies to provide value add services in 24 X 7 model.
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