copy of projeci on pnb

8/8/2019 Copy of Projeci on Pnb

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ORIGION OF BANKING

The first banks were probably the religious templesof the ancient world, and were

probably established sometime during the 3rd millennium B.C. Banks probably predated the

invention of money. Deposits initially consisted of grain and later other goods including cattle,

agricultural implements, and eventually precious metals such as gold, in the form of easy-to-

carry compressed plates. Temples and palaces were the safest places to store gold as they were

constantly attended and well built. As sacred places, temples presented an extra deterrent to

would-be thieves.

There are extant records ofloans from the 18th century BC in Babylon that were made by

temple priests monks to merchants. By the time of Hammurabi's Code, banking was well

enough developed to justify the promulgation of laws governing banking operations.

Ancient Greece holds further evidence of banking. Greek temples, as well as private and

civic entities, conducted financial transactions such as loans, deposits, currency exchange, and

validation of coinage. There is evidence too of credit, whereby in return for a payment from a

client, a moneylender in one Greek port would write a credit note for the client who could "cash"

the note in another city, saving the client the danger of carting coinage with him on his journey.

Pythius, who operated as a merchant banker throughout Asia Minor at the beginning of

the 5th century B.C., is the first individual banker of whom we have records. Many of the early

bankers in Greek city-states were metics or foreign residents. Around 371 B.C., Pasion, a

slave, became the wealthiest and most famous Greek banker, gaining his freedom and Athenian

citizenship in the process.

The fourth century B.C. saw increased use of credit-based banking in the Mediterranean

world. In Egypt, from early times, grain had been used as a form of money in addition to

precious metals, and state granaries functioned as banks.

When Egypt fell under the rule of a Greek dynasty, the Ptolemies (330-323 B.C.), the

numerous scattered government granaries were transformed into a network of grain banks,

centralized in Alexandria where the main accounts from all the state granary banks were

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recorded. This banking network functioned as a trade credit system in which payments were

effected by transfer from one account to another without money passing.

In the late third century B.C., the barren Aegean island of Delos, known for its

magnificent harbor and famous temple of Apollo, became a prominent banking center. As in

Egypt, cash transactions were replaced by real credit receipts and payments were made based on

simple instructions with accounts kept for each client. With the defeat of its main rivals,

Carthage and Corinth, by the Romans, the importance of Delos increased. Consequently it was

natural that the bank of Delos should become the model most closely imitated by the banks of

Rome.

Ancient Rome perfected the administrative aspect of banking and saw greater regulation

of financial institutions and financial practices. Charging interest on loans and paying interest on

deposits became more highly developed and competitive. The development of Roman banks was

limited, however, by the Roman preference for cash transactions. During the reign of the Roman

emperor Gallienus (260-268 CE), there was a temporary breakdown of the Roman banking

system after the banks rejected the flakes of copper produced by his mints. With the ascent of

Christianity, banking became subject to additional restrictions, as the charging of interest was

seen as immoral. After the fall of Rome, banking was abandoned in Western Europe and did not

revive until the time of the crusades. Jews took a different view of the matter The Torah and later

sections of the Hebrew Bible criticize interest-taking, but interpretations of the Biblical

prohibition vary. One common understanding is that Jews are forbidden to charge interest upon

loans made to other Jews, but allowed to charge interest on transactions with non-Jews, or

Gentiles.

SCOPE OF BANKING SECTOR

Banking business has a history of over 200 years. From the times of the Bank of Bengal

(1806) the sector has been witnessing qualitative and quantitative changes. Main players during

the pre-independence period were Credit Lyonnais, Allahabad Bank, Punjab National Bank and

Bank of India. With 1935 regulation the Reserve Bank of India was proclaimed the Central Bank

of India and was vested with controlling powers over the commercial banks.

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The drastic development taken place during the first 25 years since independence was

Nationalization of many private banks. With this, the central government became major policy

maker for these nationalized banks

With economic liberalization measures many private and foreign banking companies were

allowed to operate in the country. Favourable economic climate and a variety of other factors

such as demand for wide range of financial products from various sections of the society led to

mutually beneficial growth to the banking sector and economic growth process. This was

coincided by technology development in the banking operations. Today most of the Indian cities

have networked banking facility as well as Internet banking facility. A customer is empowered to

operate his account from any part of the country. UTI Bank, ICICI, HDFC Bank and Bank of

Punjab are the main winners of the race.

BANKING IN INDIA

Banking in India originated in the first decade of 18th century with The General Bank of

India coming into existence in 1786. This was followed by Bank of Hindustan. Both these banks

are now defunct. The oldest bank in existence in India is the State Bank of India being

established as "The Bank of Bengal" in Calcutta in June 1806. A couple of decades later, foreign

banks like Credit Lyonnais started theirCalcutta operations in the 1850s. At that point of time,

Calcutta was the most active trading port, mainly due to the trade of the British Empire, and due

to which banking activity took roots there and prospered. The first fully Indian owned bank was

the Allahabad Bank, which was established in 1865.

By the 1900s, the market expanded with the establishment of banks such as Punjab

National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which were

founded under private ownership. The Reserve Bank of India formally took on the responsibility

of regulating the Indian banking sector from 1935. After India's independence in 1947, the

Reserve Bank was nationalized and given broader powers.

EARLY HISTORY

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http://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/Credit_Lyonnaishttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/Allahabad_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Bank_of_Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/Credit_Lyonnaishttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/Allahabad_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Bank_of_Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Reserve_Bank_of_India


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At the end of late-18th century, there were hardly any banks in India in the modern sense

of the term. At the time of the American Civil War, a void was created as the supply of cotton to

Lancashire stopped from the Americas. Some banks were opened at that time which functioned

as entities to finance industry, including speculative trades in cotton. With large exposure to

speculative ventures, most of the banks opened in India during that period could not survive and

failed. The depositors lost money and lost interest in keeping deposits with banks. Subsequently,

banking in India remained the exclusive domain of Europeans for next several decades until the

beginning of the 20th century. At that time there were very small banks operated by Indians, and

most of them were owned and operated by particular communities. The banking in India was

controlled and dominated by the presidency banks, namely, the Bank of Bombay, the Bank of

Bengal, and the Bank of Madras

.

DURING WARS

The years of the First World War were turbulent, and it took toll of At least 94 banks in

India failed during the years 1913 to 1918 as indicated in the following table:

Table showing failed banks in India during 1913 to 1918

Years

Number of

banks

that failed

Authorised capital

(Rs. Lakhs)

Paid-up Capital

(Rs. Lakhs)

1913 12 274 35

1914 42 710 109

1915 11 56 5

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1916 13 231 4

1917 9 76 25

1918 7 209 1

Table no: 1 source: Wikipedia

POST INDEPENDENCE

In 1948, the Reserve Bank of India, India's central banking authority, was nationalized,

and it became an institution owned by the Government of India.

In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of

India (RBI) "to regulate, control, and inspect the banks in India."

The Banking Regulation Act also provided that no new bank or branch of an existing

bank may be opened without a licence from the RBI, and no two banks could have

common directors.

NATIONALISATION

By the 1960s, the Indian banking industry has become an important tool to facilitate the

development of the Indian economy. Indira Gandhi, the-then Prime Minister of India expressed

the intention of the GOI in the annual conference of the All India Congress Meeting in a paper

entitled "Stray thoughts on Bank Nationalisation." The paper was received with positive

enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued an ordinance and

nationalised the 14 largest commercial banks with effect from the midnight ofJuly 19,1969.

LIBARALISATION

The new policy shook the Banking sector in India completely. Bankers, till this time,

were used to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4) of functioning.

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In the early 1990s the then Narsimha Rao government embarked on a policy of

liberalisation and gave licences to a small number of private banks, which came to be known as

New Generation tech-savvy banks, which included banks such as Global Trust Bank (the first of

such new generation banks to be set up)which later amalgamated with Oriental Bank of

Commerce,UTI Bank(now re-named as Axis Bank), ICICI Bankand HDFC Bank..

CURRENT SITUATION

Currently, India has 88 scheduled commercial banks (SCBs) - 28 public sector banks

(that is with the Government of India holding a stake), 29 private banks (these do not have

government stake; they may be publicly listed and traded on stock exchanges) and 31 foreign

banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to

a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total

assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5%

respectively

KEY PLAYERS:

Several number of players like Andhra Bank, State Bank of Mysore, Allahabad Bank, Vijaya

Bank, Punjab National Bank, HDFC Bank, UTI Bank, ICICI Bank, Kotak Mahindra Bank,

Centurion Bank of Punjab, Citibank, Standard, HSBC, ABN AMRO and American Express

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http://en.wikipedia.org/wiki/Narsimha_Raohttp://en.wikipedia.org/wiki/Liberalisationhttp://en.wikipedia.org/wiki/UTI_Bankhttp://en.wikipedia.org/wiki/Axis_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/HDFC_Bankhttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Narsimha_Raohttp://en.wikipedia.org/wiki/Liberalisationhttp://en.wikipedia.org/wiki/UTI_Bankhttp://en.wikipedia.org/wiki/Axis_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/HDFC_Bankhttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Automated_teller_machine


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PUNJAB NATIONAL BANK

ORIGON

Punjab national bank was established in 1895 at Lahore, undivided India, Punjab

National Bank (PNB) has the distinction of being the first Indian bank to have been started solely

with Indian capital. The bank was nationalised in July 1969 along with 13 other banks. From its

modest beginning, the bank has grown in size and stature to become a front-line banking

institution in India at present.

PROFILE

With its presence virtually in all the important centres of the country, Punjab National Bank

offers a wide variety of banking services which include corporate and personal banking,

industrial finance, agricultural finance, financing of trade and international banking. Among the

clients of the Bank are Indian conglomerates, medium and small industrial units, exporters, non-

resident Indians and multinational companies. The large presence and vast resource base have

helped the Bank to build strong links with trade and industry.

Punjab National Bank is serving over 3.5 crore customers through 4540 Offices including

421 extension counters - largest amongst Nationalized Banks.

Punjab National Bank with 112 year tradition of sound and prudent banking is one among

300 global companies and seven Indian companies which are expected to emerge as challengers

to Worlds leading blue chip companies. While among top 1000 world banks, The Banker, the

leading magazine in London, has placed PNB at the 248th position, the bank features at 1308th

position among Forbes Global 2000 list of global giants and fast growing companies.

At the same time, the bank has been conscious of its social responsibilities by financing

agriculture and allied activities and small scale industries (SSI). Considering the importance of

small scale industries bank has established 31 specialised branches to finance exclusively such

industries.

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Strong correspondent banking relationship which Punjab National Bank maintains with

over 200 leading international banks all over the world enhances its capabilities to handle

transactions world-wide. Besides, bank has Rupee Drawing Arrangements with 15 exchange

companies in the Gulf and one in Singapore. Bank is a member of the SWIFT and over 150

branches of the bank are connected through its computer-based terminal at Mumbai. With its

state-of-art dealing rooms and well-trained dealers, the bank offers efficient forex dealing

operations in India.

The bank has been focussing on expanding its operations outside India and has identified

some of the emerging economies which offer large business potential. Bank has set up

representative offices at Almaty: Kazakhistan, Shanghai: China and in London. Besides, Bank

has opened a fully fledged Branch in Kabul, Afghanistan.

Keeping in tune with changing times and to provide its customers more efficient and speedy

service, the Bank has taken major initiative in the field of computerization. All the Branches of

the Bank have been computerized. The Bank has also launched aggressively the concept of "Any

Time, Any Where Banking" through the introduction of Centralized Banking Solution (CBS) and

over 2409 offices have already been brought under its ambit.

PNB also offers Internet Banking services in the country for Corporates as well asindividuals. Internet Banking services are available through all Branches of the Bank networked

under CBS. Providing 24 hours, 365 days banking right from the PC of the user, Internet

Banking offers world class banking facilities like anytime, anywhere access to account, complete

details of transactions, and statement of account, online information of deposits, loans overdraft

account etc. PNB has recently introduced Online Payment Facility for railway reservation

through IRCTC Payment Gateway Project and Online Utility Bill Payment Services which

allows Internet Banking account holders to pay their telephone, mobile, electricity, insurance and

other bills anytime from anywhere from their desktop.

Another step taken by PNB in meeting the changing aspirations of its clientele is the launch

of its Debit card, which is also an ATM card. It enables the card holder to buy goods and

services at over 99270 merchant establishments across the country. Besides, the card can be used

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to withdraw cash at more than 25000 ATMs, where the 'Maestro' logo is displayed, apart from

the PNB's over 1094 ATMs and tie up arrangements with other Banks.

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 the weaker section; committed

to excellence in serving the public and also 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 the field of

financial and related services; build and maintain a team of motivated and committed workforce

with high work ethos; use latest technology aimed at customer satisfaction and act as an effective

catalyst for socio-economic development

AWARDS & ACHIEVEMENTS PUNJAB NATIONAL BANK

"Best IT Team of the Year Award" : at the IDRBT Banking Technology awards for the

year 2005-06.

SKOTCH Challenger Award : for Change Management for the year 2005-06

Best IT User in Banking & Financial Services Industry 2004 : NASSCOM in partnership

with Economic Times

Golden Peacock Award :for Excellence in Corporate Governance - 2005 by

Institute of Directors

FICCI's Rural Development Award for Excellence in Rural Development 2005

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Skotch Challenger Award for Exemplary use of Technology: for becoming a pioneer in

Public Banks - 2005

Golden Peacock National Training - 2004 & 2005 by Institute of Directors

National Award for Excellence in SSI Lending Ranked 2nd for 4 consecutive years - 2002,

2003, 2004 & 2005

BankingTechnologyAwards 2004 Jointly Adjudged by IBA, Finacle & TFCI

Runner up in 'Best IT Team of the Year

Award 2005'

MoneyOutlookAward2004 Runner up in 'Best Bank (public Sector) of

the year Award' -2005

Niryat Bandhu Gold Trophy for excellence in export perforamnce for 3 consecutive

years2001,2002&2003by Federation of Indian Exporters

Organization (FIEO)

MoneyOutlookAward 2004 Runner up in 'Best Bank (public Sector) of the year Award'

-2005

21st Amongst Top 500 Companies by the leading Financial Daily the Economic Times,

June 2005

9th amongst India's Top 50 Most Trusted Service Brands A.C Nielson Survey, the

Economic Times Dec 2004

3rdRankamongs banks Sector in India 323rd Rank in the World

The Bankers' Almanac, January 2006

368 amongst Top 1000 Global Banks the Banker, London July 2005

BOARD FO DIRECTORS

Dr K.C. Chakrabarthy Chairman & Managing Director

Shri K.Raghuraman Executive Director

Shri .J.M.Gerg Exective Director

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DIRECTOR

Shri .Ravneet Kaur Govt. of India Nominee Director

Shri .L.M.Fonseca Reserve bank of India Nominee Director

Shri .S.R.Khurana Director Rep.C.A.catagory

Shri P.K.Nayar Officer Employee Director

Shri.Mohan Lal Workmen Employee director

Dr.Harsh Mahajan Share holder Director

Shri.Prakash Agrawal Shareholder Director

Shri Gautam P.Khandelwal Part-time non-official Director

Shri Mushtaq A Antulay Part-time non-official Director

KEY COMMITMENTS

OUR KEY COMMITMENTS

We promise to:

1) Act fairly and reasonably in all our dealings with you by:

meeting the commitments and standards in this Code, for the products and services we offer,

and in the procedures and practices our staff follow

making sure our products and services meet relevant laws and regulations

our dealings with you will rest on ethical principles of integrity and transparency.

2) Help you to understand how our financial products and services work by:

giving you information about them in plain Hindi and/or English and/or the local language

explaining their financial implications and

helping you chooses the one that meets your needs.

3) Dealquickly and sympathetically with things that go wrong by:

correcting mistakes quickly

handling your complaints quickly

telling you how to take your complaint forward if you are still not satisfied and

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reversing any bank charges that we apply due to our mistake.

4) Publicise this Code, put it on our website and have copies available for you on request.

SWOT ANALYSIS

STRENGTHS:

Strong growth in business

Good branch network

Highest CASA among PSU

Highest NIMs compared to peers

Fine growth in fee income last year

De-risked investment portfolio Adequate Capital

Proactive on technology front.

WEAKNESS:

Higher Delinquencies

Higher provisions deterring growth in net profits

No development on insurance venture

Slower growth on international front

Slow-down in treasury profits

Its subsidiaries PNB Housing Finance & PNB Gilts are not impressive

OPPORTUNITIES:

Expansion on international front

Ample opportunity to expand business, as the economy is doing well.

Growth in Insurance and Mutual Fund business

THREATS: Entry of foreign banks

Sharp rise in interest rates can hamper economic growth

Regulatory amendments

Implementation of Basel II requires higher capital

Downturn in Agriculture growth

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PRODUCTS AND SERVICES:

PRODUCTS:

Personal banking

Corporate banking

Home loans

About loan

ATM/DEBIT cards

Deposit interest rates

SERVICES

Locker facilities

Depository services

Senior citizen scheme

RTGS/NEFT/SFMS:PNB

Merchant banking

Online tax accounting system

Electronic fund transfer

Electronic clearing service

Offshore banking

12 hours banking

PRODUCTS:

1.Personal banking loans

Purpose: To meet all types of personal needsEligibility

i) All permanent Defence Personnel including officials of Military Station Headquarters, BSF,

CRPF, CISF, ITBP

ii) Confirmed/ permanent employees of Central/ State Govt/ PSUs and all reputed companies/

Institutions, who are drawing their salary through accounts maintained with our branches.

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Employees of above categories under check-off facility OR having minimum annual income of

Rs.3.00 lac.

iii)Professionally qualified Doctors viz. MBBS, BDS & above having annual income of Rs.3.00

lac & above.

Nature and Amount of Loan:

Term Loan/ Overdraft Minimum amount of loan will be Rs.10,000/- and maximum

amountof loan Rs.3,00,000/- or 30 times monthly net salary, whichever is lower, depending upon

the repaying capacity

Margin NIL

Security Suitable guarantee acceptable to the Bank.

Rate of Interest : 13.00% p.a. For others having annual income of Minimum Rs.3.00 lac :

14.00% p.a.

Repayment

60 Equated Monthly Instalments (EMIs) OR remaining period of service, whichever is

earlier. Instalment to commence one month after disbursement of loan.

However, loan allowed to Army Jawans, other permanent employees of Military Station

Headquarters and Para Military Personnel shall be Repayable in maximum 36Equated Monthly

Instalments or remaining period of stay at the particular posting, whichever is lower.

2.)CORPORATE BANKING

I)Loan Against Future Lease Rentals

PNB has introduced a new scheme for property owners having their property situated in

Metro/Urban/ Semi Urban/rural centres and who have let out such properties.

Eligibilitys

Property Owners having their properties situated in metro, urban, semi-urban and rural

areas who have leased out such properties to the following:

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(i) Public Sector Undertakings / Govt. / Semi / State Govt. & reputed corporates, Banks,

Financial Institutions, Insurance Companies and Multinational Companies.

(ii) Reputed private schools/colleges (approved by/affiliated to State Board/University/

AICTE/ any other govt. body).

(iii) Reputed private hospitals/ nursing homes

Security: Assignment of lease rentals.

Equitable mortgage of the leased property or any other immovable property:-

* In case of loans having repayment period upto 5 years, the amount of loan should not

exceed the value of the property mortgaged.* In case of loans having repayment period beyond 5 years, the amount of loan should

not exceed 75% of the value of the property mortgaged.

In case of Company - Personal Guarantee of promoter directors.

Rate of interest

Less than 3 years - BPLR minus 0.25% [Minimum 13.50%]

3 years and above - BPLR minus 0.25% + 0.50% (Term Premia) [Minimum 13.50%]

ii)EXIM FINANCE

Services offered to Exporters

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Post-shipment finance in foreign currency and Indian rupees

Handling export bills on collection basis

Outward remittances for purposes as permitted under Exchange Control guidelines

Inward remittances including advance payments

Quoting of competitive rates for transactions

Maintenance of Exchange Earners Foreign Currency (EEFC) accounts

Assistance in obtaining credit reports on overseas parties

Forfeiting for medium term export receivables

Services offered to Importers

Establishment of Import Letters of Credit covering import into India and handling of bills under

Letter of Credit

Handling of import bills on collection basis

Remittance of advance payment against imports

Offering utilisation of PCFC ( pre-shipment credit in foreign currency) for imports

Credit reports on overseas suppliers

Exchange Earners Foreign Currency (EEFC) Deposits Scheme

The Exchange Earners Foreign Currency (EEFC) Deposits Scheme was started by RBI inthe year 1992 with the introduction of Liberalised Exchange Rate Management System. Under

this scheme, the recipient of inward remittances, exporters and other eligible bodies are allowed

to keep a portion of their inward remittances / export proceeds in foreign currency with the

banks in India which can later be utilised for permissible purposes.

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PNB sets up connectivity with the Customs Deptt. for the benefit of exporters/importers

To provide efficient service to our importer/exporter clients, PNB has set up connectivity

with the Customs Department to facilitate payment of custom duty and receipt of duty draw

back by the importer/exporter clients through the electronic media. Under this system of

Electronic Data Interchange (EDI), Custom Authorities process the shipping bills and also effect

on line payment of duty draw back for exporters. Further, they undertake processing of Bill of

Entry and deposit of custom duty for imports. This is a pilot project in the country successfully

implemented at Indira Gandhi International Airport, Custom House branch of PNB. This has

now been replicated at PNB's extension counters at Inland Container Depot, Tughlakabad, Delhi

and Patpar Ganj, Delhi.

III. Cash Management Services

Punjab National Bank had taken a major initiative for managing the funds of Corporates.

The services are essentially meant for pooling your funds spread across the country at a place of

your choice with the least time delay, if not instantaneously in many cases. We shall collect

your receivables from your representative or your business associates at more than 2700 CBS

branches spread across 935 centers all over the country and pool the same at the branch

specified by you. The services can be custom designed to cater to your specific needs.

The Scheme offers the following options for you:

Option I: Instant credit through our CMS to your account, pending clearance of funds.

Option II: Credit to your account through our CMS after realizations.

Option III: You can choose Option I or II according to your client profile and indicate to us

client-wise.A host of Daily/weekly/monthly reports and special report including center-wise reports

generated at our HUB at Delhi can be sent you through electronic media as per requirements of

your funds Managers.

(Charges in paisa/Rs. 1000)

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For Metro locations

(metropolitan cities)25 paisa

For Non-metro locations

(state capitals & District HQs)50 paisa

For Remote locations

(all other locations)90 paisa

In case your turnover crosses certain assured level we offer attractive discounts on the above

charges ranging from 20% to over 76%. For example, if your annual turnover of collection

exceeds Rs. 250 crores at Chennai (a metro location), the charges shall be just 06 paisa per

1000/-.

IV. PNB EXPO GOLD CARD FOR EXPORTERS

Punjab National Bank has formulated Gold Card Scheme for its exporter clients based on

the scheme drawn up by Reserve Bank of India. The scheme proposes to ensure easy

availability of export credit on best terms to credit worthy exporters with good track record. The

card to be offered by PNB will be known as PNB Expo Gold Card.

3. HOUSING LOAN

PNB reaches out to you with fast, friendly and most convenient home loans for:

Construction or purchase of house/ flat.

Purchase of house/ flat on First Power of Attorney basis from the original allottee.

Carrying out repairs/ renovations/ additions/ alterations to existing house/ flat.

Special Feature- To cover the loan outstanding, life Insurance cover is also

available on payment of one time premium which can also be financed by the Bank.Extent of loan

Individual

For construction/purchase of house/ flat:- 75% of the cost of construction of house or purchase

of house/ flat. For carrying out repairs/ renovation/ additions/ alterations: - 75% of the estimated

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cost subject to maximum of Rs. 20lacs. Loan upto Rs.20 Lacs for purchase of Land/Plot.

Loan is available maximum upto Rs.2 Lacs for furnishing

4.CAR FINANCE

Own a vehicle with the friendliest and most convenient car loan. Either you can purchase a

new Car/ Van/ Jeep or raise loan to purchase old vehicles that are not older than 3 years.

Finance will be provided for purchase of vehicle of indigenous/ foreign makes

5.PNB INTRODUCES ADD-ON DEBIT CARD :

Share the convenience of PNB Debit card with your loved ones .Simply gift them add-on

card. PNB Customers of CBS branches can get two add-on cards alongwith his own Debit card

for free.The person you are gifting the card to does not necessarily has to be an account holder

with PNB.

The add-on card can be issued in the name of spouse, dependent parents,and dependent

children not below 18 years.The add-on cardholders like the main cardholder will also be

covered for accidental death insurance of Rs. 1 lac subject to certain terms and conditions. The

tranasactions done by add-on cardholders will automatically get debited to the account of the

primary cardholder who shall be responsible for all the transactions made by Add On card

holder/s.

SERVICES

1. LOCKERS FACILITY

For the safety of your valuables, PNB offers Safe Deposit Vaults (Lockers) facilities at a large

number of branches. there is a nominal annual charge, which depends on the size of the locker

and the centre where the branch is located

2.DEPOSITORY SERVICES

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same or any other designated centre which would facilitate remittance to reach destination on

the very next working day itself through the system of computer and communication network.

This scheme is currently operational in Metros only; other centres will be added shortly. Limit

for individual transactions has been increased from current limit of Rs. 5 lac to Rs. 2 crores

4.ELECTRONIC CLEARING SERVICES (ECS)

What is ECS?

ECS is a method of quick movement of funds in a paperless mode introduced by Reserve

Bank of India.

There are two types of ECS i.e. ECS (Credit) and ECS (Debit).

Punjab National Bank is properly equipped to provide ECS (Credit/Debit Clearing) facility

for the benefit of the customers.

Main Features of ECS (Credit)

This is a method of payment whereby any institution which has to make large number of

payments (such as interest/dividend/salary etc), can directly deposit the amount electronically

into the bank accounts of the beneficiaries without issuing any paper instruments. ECS (Credit)

envisages single debit and multiple credits.

5.OLTAS

Challan Status Inquiry

The Income-tax Department is introducing from June 1, 2004 a new system relating to

payment of taxes, called Online Tax accounting System (OLTAS). The taxpayer friendly

features of OLTAS include a single copy challan - cum - acknowledgment form instead of the

present four-copy challan. Every challan will have a unique identification number called

Challan Identification Number (CIN). This consists of BSR code (Bank branch code), Challan

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Tender Date (cash / cheque deposit date) and Challan Serial Number. With the help of CIN,

every payment will be uniquely identified enabling online transmission of details of tax

payments by banks to the Income Tax department.

6.RTGS:

List of RTGC branches

An RTGS (Real Time Gross Settlement) payment system is one in which payment

instructions between banks are processed and settled individually as per following time

schedule:

Customer transactions can be sent through the RTGS System at any time from the start

of the RTGS Business Day (9 am) till - 3 p.m. on weekdays and 12.00 noon on

Saturdays.

INTERBANK TRANSACTIONS can be sent through the RTGS System at any time from the

start of the RTGS Business Day (9 am) till - 5 p.m. on weekdays and 2 p.m. on Saturdays.

The attraction of the RTGS systems is that payee banks and the customers receive funds

with certainty, or say finality, during the day, enabling them to use the funds immediately

without exposing themselves to risk.

6.Senior Citizens Scheme-2004

Depositormeans an individualwho has attained the age of 60 years or above on the date of

opening of an account under the provisions of these rules, and by whom, or on whose behalf,

money is deposited in an account under these rules, i) who has attained the age of 55 years or

more but less then 60 years, and who has retired on superannuation or otherwise on the date of

opening of an account under these rules, subject to the condition that the account is opened by

such individual with in one month of the date of receipt of the retirement benefits

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7.Deposits and withdrawals :

There shall be only one deposit in the account in multiple of one thousand rupees not

exceeding rupees fifteen lakh. In case who retired between 55 years or more but less then 60

years, the deposit by the depositor shall be restricted to the retirement benefits received by them

or Rupees Fifteen Lac, which ever is lower. No withdrawal shall be permitted under these rules

before the expiry of a period of five years from the date of opening of an account.

PUNJAB NATIONAL BANKS PERFORMANCE HIGHLIGHTS

(Reviewed Financial Results for the First Half of FY 2007-08)

The Board of directors of Punjab National Bank approved the banks financial results for

the first half of FY 2007-08. The bank has taken several steps to meet the aspirations of rural

masses, particularly in Indo Gangetic area of the country, where the bank has major presence.

1)Financial Results

1. Profit & Loss Account

Net profit for the first half of the current financial year 2007-08 amounted to Rs 963.55 Cr,

compared to Rs 872.51 Cr during the first half of FY 2006-07, registering a y-o-y growth of

10.4%.

Operating Profit of the bank (excluding loss incurred on transfer of securities to HTM

portfolio) during the half year ended September 2007 increased to Rs 1788 Cr, compared to Rs

1778 Cr during the half year ended September 2006. However, on accounting for the loss of Rs

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497.74 Cr incurred on transfer of securities to HTM portfolio, the Operating Profit of the bank

amounted to Rs 1290 Cr during the first half year ended September 2007. The transfer of

securities was done during the first quarter of FY 2007-08 to de-risk the investment portfolio of

the bank from interest rate risk.

In the current environment, higher pressure on Net Interest Margin & NPAs and the need

for additional provisioning for pension, gratuity & leave encashment for staff of the bank under

projected unit credit method (PUCM) resulted in lower operating profit of the bank.

Total income of the bank increased to Rs 7228 Cr during April-September 2007, compared to

Rs 5596 Cr during April-September 2006, registering a y-o-y growth of 29.2%.

- Non-Interest income through commission, exchange and brokerage

increased by 17.4 % to Rs 540 Cr during the first half of FY 2007-08 from Rs 461 Cr during the

first half of FY 2006-07.

y Total expenses (excluding provisions) amounted to Rs 5938 Cr during the half year ended

September 2007, compared to Rs 4204 Cr during the half year ended September 2006,

registering a y-o-y growth of 41.2%.. Net Interest Margin has declined to 3.49% during April- September 2007 from 3.86% during

April- September 2006.

. Yield on Advances of the bank has improved to 10.20% during April-September 2007 from

8.95% during April- September 2006.

. Due to the overall firming of interest rates, the Cost of Deposits of the bank increased to 5.55%

during the first half of FY 2007-08 from 4.35% during the first

half of FY 2006-07.

. Yield on Investment of the bank has declined to 6.88% during April- September 2007 from

7.09% during April- September 2006.

. Return on Assets stood at 1.13% at the end of September 2007.

. Capital to Risk Asset Ratio (CRAR) at the end of September 2007 at 12.58%.

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Bank is ready for Basel II compliance.

2.Balance Sheet

Total Business of the bank increased by 19.3% on y-o-y basis to Rs 251474 Cr at the end of

September 2007 compared to Rs 210755 Cr as at the end of September 2006.

.Total Deposits at the end of September 2007 amounted to Rs 149980 Cr, compared to Rs

128415 Cr as at the end of September 2006 registering a growth of 16.8 % on y-o-y basis. CASA

accounted for43.91 % of the total deposits of the bank at the end of September 2007.

Advances at the end of September 2007 amounted to Rs 101494 Cr, compared to Rs 82340 Cr

as at the end of September 2006, registering a y-o-y growth of 23.3 %. 9

Retail credit constituted 23.3% of Gross Credit of the bank, as at the end of September 2007. It

increased by 21.8% to Rs 24100 Cr at the end of September 2007 from Rs 19794 Cr at the end

of September 2006. Education loan is the main thrust area of the bank, showing an increase of

35% to Rs 1155 Cr, while loan to traders increased by 46% to Rs 7889 Cr.

Priority sector advances increased to Rs 41,709 Cr at the end of September 2007, compared to

Rs 36,615 Cr as at the end of September 2006, registering a Y-O-Y growth of 13.9%. Ratio of

PS advances to adjusted net bank credit continued to remain much higher at 42.38% against

national goal of 40%. 9 The bank has opened more than 3 lakh No Frill accounts under PNB

Mitra Scheme and has issued more than 24,000 General Credit Cards.

9 Credit to Agriculture was Rs 18,942 Cr at the end of September 2007, compared to Rs 16570

Cr as at the end of September 2006 showing Y-O-Y growth of 14.3%. Agricultural advances as

percent to adjusted net bank credit at around 18.3% was higher than the national goal of 18%.

9 To facilitate disbursal of credit to the farmers, the bank has issued 1, 29,433 Kisan Credit

Cards (KCCs) during April-September 2007 taking the cumulative number to 22.48 lakh KCCs.

9 The bank's advances to the Small Enterprises at the end of September 2007 stood at Rs

11,789 Cr, compared to Rs 9606 Cr as at the end of September 2006, recording a Y-O-Y growth

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of 22.7%. Ratio of Small Enterprises advances to adjusted net bank credit stood at 11.98% at the

end of September 2007.

II. Information Technology

Core Banking Solution (CBS) has been implemented in 2791 Service Outlets (SOLs) at 935

centres, covering 83% of bank's total business, facilitating around 2.23 Cr customers with

"anytime and anywhere" banking.

National Electronic Fund Transfer (NEFT) is operational in 2280branches.

The bank has 2353 RTGS and 1395 SFMSbranches.

III. International Operations

Total Export-Import turnover of the bank increased to Rs 30,506 Cr in half year ended

September 2007 as compared to Rs 24,848 Cr in the half year ended September 2006, registering

a y-o-y growth of 22.8 %.

PNBs Hong Kong branch is likely to be operational in the month of November, 2007. The

bank is in the process of upgrading its Representative Office at Shanghai into a branch and to

establish presence at Singapore (OBU) and Canada (Subsidiary). PNB is also exploring

possibilities for its presence in Bhutan through JV route.

IV. NPA Management

At the end of September 2007, the ratio of Net NPAs to net Advances was 1.86 %, whileGross NPAs to Gross Advances of the bank stood at 4.57 % at the end of September 2007.

V. New Business Initiatives of the Bank

Bank launched a pilot project on financial inclusion at Neemrana, Distt. Alwar, Rajasthan

and endeavors to launch it at 9 more places, viz at Chandigarh, Taran, Saharanpur & Balia,

Dehradun, Ranchi, Mayur Bhanj, Gaya and Patna.

Under Financial Inclusion, the bank plans to cover 30,000 villages, 15 million households and

75 million people by 2010.

PNBs 8 Farmers Training Centres (FTCs) trained 1, 09,614 persons till September 2007.

The FTC introduced a scheme, called Kisan Bandhu whereby 5 local youth have been inducted

and trained at each FTC, who are actively pursuing the task of financial inclusion by visiting the

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doorstep of villagers.

PNB has introduced PNB Baghban, a Reverse Mortgage Loan Scheme for senior citizens and

49 cases involving an amount of around Rs 18 Cr have already been sanctioned.

VI. Recognition : First Half of FY 2007-08 :

According to The Banker, a London based Magazine (July 2007), PNB is placed at 255th

place, amongst top 1000 Banks in the World.

PNB was bestowed Golden Peacock Award for Excellence in Corporate Governance by the

Institute of Directors for the FY 2006-07.

CIO 100 Awards (2007)by IDG Media Pvt Ltd for Best IT Implementation.

Share holding pattern

Graph no 2

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ANNEXURE -1

ofit loss account

Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04

come:

perating income 15,925.65 12,104.24 9,791.12 9,712.63 9,617.34

penses

aterial consumed - - - - -

anufacturing expenses - - - - -

rsonnel expenses 2,461.54 2,352.45 2,114.97 2,121.23 1,654.06

lling expenses 23.31 18.03 20.15 19.16 10.85

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dminstrative expenses 1,247.47 1,360.77 941.38 933.60 1,764.91

penses capitalized - - - - -

st of sales 3,732.33 3,731.25 3,076.51 3,073.99 3,429.82

perating profit 3,462.46 2,350.09 1,797.23 2,185.53 2,032.53

her recurring income 231.62 186.67 131.54 470.69 59.85

djusted PBDIT 3,694.08 2,536.76 1,928.77 2,656.22 2,092.38

nancial expenses 8,730.86 6,022.91 4,917.39 4,453.11 4,154.99

preciation 170.23 194.80 186.65 183.28 181.45

her write offs - - - - -

djusted PBT 3,523.85 2,341.96 1,742.12 2,472.94 1,910.93

diustedax charges 1,247.15 629.05 412.83 495.49 660.79

djusted PAT 2,047.63 1,539.33 1,436.66 1,409.50 1,108.45

on recurring items1.1

30.76 2.65 0.62 0.24

her non cash adjustments - - - - -

ported net profit 2,048.76 1,540.08 1,439.31 1,410.12 1,108.69

rnigs before appropriation 2,064.28 1,723.57 1,439.31 1,410.12 1,108.69

uity dividend 409.89 409.89 189.18 174.18 106.12

eference dividend - - - - -

vidend tax 69.66 63.11 26.53 23.48 13.60

tained earnings 1,584.73 1,250.57 1,223.60 1,212.46 988.97

ANNEXURE -II

Balance sheet

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Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04

Sources of funds

Owner's fund

Equity share capital 315.30 315.30 315.30 315.30 265.30

Share application money - - - - -Preference share capital - - - - -

Reserves & surplus 10,467.35 9,826.31 8,758.68 7,533.50 4,425.47

Loan funds

Secured loans - - - - -

Unsecured loans 1,66,457.23 1,39,859.67 1,19,684.92 1,03,166.89 87,916.40

Total 1,77,239.88 1,50,001.28 1,28,758.90 1,11,015.69 92,607.16

Uses of funds

Fixed assets

Gross block 3,699.64 2,247.74 2,106.92 1,875.65 1,645.93

Less : revaluation reserve 1,535.70 293.85 302.38 312.49 321.04

Less : accumulated depreciation 1,384.12 1,237.92 1,076.69 910.42 746.08

Net block 779.83 715.98 727.84 652.74

Capital work-in-progress - - - - -

Investments 53,991.71 45,189.84 41,055.31 50,672.83 42,125.49

Net current assets

Current assets, loans & advances 4,380.84 3,980.80 3,762.79 3,101.44 3,261.18

Less : current liabilities & provisions 14,798.23 10,178.51 9,518.93 12,194.80 8,114.48

Total net current assets -10,417.38 -6,197.71 -5,756.14 -9,093.36 -4,853.30

Miscellaneous expenses not written - - - - -

Total 44,354.15 39,708.10 36,027.01 42,232.20 37,850.99

Notes:

Book value of unquoted investments - - - - -

Market value of quoted investments - - - - -

Contingent liabilities 1,04,055.87 74,700.48 58,739.31 47,047.19 32,229.85

Number of equity shares outstanding (Lacs) 3153.03 3153.03 3153.03 3153.03 2653.03

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ANNEXURE-III

Ratios Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04Per share ratios

Adjusted EPS (Rs) 64.94 48.82 45.56 44.70 41.78

Adjusted cash EPS (Rs) 70.34 55.00 51.48 50.52 48.62

Reported EPS (Rs) 64.98 48.84 45.65 44.72 41.79

Reported cash EPS (Rs) 70.38 55.02 51.57 50.54 48.63

Dividend per share 10.00 10.00 6.00 3.00 4.00

Operating profit per share (Rs) 109.81 74.53 57.00 69.32 76.61

Book value (excl rev res) per share (Rs) 341.98 321.65 287.79 248.93 176.81

Book value (incl rev res) per share (Rs.) 390.68 330.97 297.38 258.84 188.91

Net operating income per share (Rs) 505.09 383.89 310.53 308.04 362.50

Free reserves per share (Rs) 63.79 64.29 69.61 63.79 4.20

Profitability ratios

Operating margin (%) 21.74 19.41 18.35 22.50 21.13

Gross profit margin (%) 20.67 17.80 16.44 20.61 19.24

Net profit margin (%) 12.68 12.53 14.50 13.84 11.45

Adjusted cash margin (%) 13.72 14.10 16.35 15.64 13.32

Adjusted return on net worth (%) 18.99 15.17 15.83 17.95 23.63

Reported return on net worth (%) 19.00 15.18 15.86 17.96 23.63

Return on long term funds (%) 111.52 80.76 74.57 81.00 126.29

Leverage ratios

Long term debt / Equity - - - - -

Total debt/equity 15.44 13.79 13.19 13.14 18.74

Owners fund as % of total source 6.08 6.76 7.04 7.06 5.06

Fixed assets turnover ratio 4.35 5.48 4.75 5.28 5.97

Liquidity ratios

Current ratio 0.29 0.39 0.39 0.25 0.40

Current ratio (inc. st loans) 0.02 0.02 0.02 0.02 0.03Quick ratio 9.40 11.10 10.69 5.98 7.05

Inventory turnover ratio - - - - -

Payout ratios

Dividend payout ratio (net profit) 23.40 30.71 14.98 14.01 10.79

Dividend payout ratio (cash profit) 21.61 27.26 13.26 12.40 9.27

Earning retention ratio 76.59 69.28 84.99 85.98 89.20

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Cash earnings retention ratio 78.38 72.73 86.72 87.60 90.72

Coverage ratios

Adjusted cash flow time total debt 75.05 80.65 73.73 64.77 68.16

Financial charges coverage ratio 1.42 1.42 1.39 1.60 1.50

Fin. charges cov.ratio (post tax) 1.25 1.29 1.33 1.36 1.31Component ratios

Material cost component (% earnings) - - - - -

Selling cost Component 0.14 0.14 0.20 0.19 0.11

Exports as percent of total sales - - - - -

Import comp. in raw mat. consumed - - - - -

Long term assets / total Assets 0.92 0.92 0.91 0.94 0.92

Bonus component in equity capital (%) - - - - -

Cash flow

Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar

Profit before tax 3,295.91 2,169.13 2,033.87 1,904.74 1,768

Net cashflow-operating activity 1,756.13 -10,144.34 14,961.44 1,073.53 529

Net cash used in investing activity -444.46 -159.41 -465.64 -349.83 -176

Netcash used in fin. activity 1,873.54 1,157.57 -793.13 1,544.81 390

Net inc/dec in cash and equivlnt 3,185.21 -9,146.17 13,702.66 2,268.51 743

Cash and equivalnt begin of year 15,645.52 24,791.69 11,089.03 8,820.51 8,077

Cash and equivalnt end of year 18,830.72 15,645.52 24,791.69 11,089.03 8,820

NEED FOR THE STUDY:

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The study is conducted to get awareness and learn about the performance of the company.

It is very important to know the operations and management of the business because as the

business is been done by investing lot of funds (debt and equity). Both the debtors and equity

share holders interest are vested with the company performance ,therefore it is necessary to learn

about the operations performance and about competitors of the company. It is also important for

us to understand the financial statements and analysis it by using various ratios.

TYPE OF DATA

The study is a descriptive in nature and secondary data have been gathered for the study

various type of secondary sources from which the data has been gathered as described below.

From the company web site : www.pnb.com

TYPE OF RESEARCH :Descriptive research in nature

STATISTICAL TOOL

Statistical tool are used for this study ratios and percentages is used for analysis fo

financial statements, a ratios is defined as it refer to the relationship expression in mathematical

term between two individual figures or group figures. four types of ratios are calculated for this

study are as follows.

1) liquidity ratios

2) leverage ratios

3) turn over ratios

4) profitability ratios

SCOPE OF THE STUDY :

The study is conducted by considering one company : Punjab national bank, from

banking sector. To learn its performance. Competition of the company. Four years of financial

data is considered for analysis using ratios

LIMITATIONS

The study is carried by considering secondary data.sa the results is based on the

credibility of data.

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CONTENTS

Page no.

i. Origin of the banking 1-2

ii. Banking in India 3-8

iii. Company details

Origin of the company 9

Company summery 9-10

Profile 11-13

Vision and mission 13

Awards and achievements 13-15

Board of directors 15

Key commitment 16

SOWT analysis 17

Products and services 18-31

Performance highlights 31-34

Share holding pattern 34

Annexure I 35-36

Annexure II 36-37

Annexure-III 38-39

copy of projeci on pnb

Documents