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Please go through the website of Punjab national Bank for full details.


"To be a Leading Global Bank with Pan India footprints and become a household brand in the Indo-Gangetic Plains providing entire range of financial products and services under one roof"
"Banking for the unbanked"

With over 60 million satisfied customers and more than 5100 offices including 5 overseas branches, PNB has continued to retain its leadership position amongst the nationalized banks. The bank enjoys strong fundamentals, large franchise value and good brand image. Besides being ranked as one of India's top service brands, PNB has remained fully committed to its guiding principles of sound and prudent banking. Apart from offering banking products, the bank has also entered the credit card, debit card; bullion business; life and non-life insurance; Gold coins & asset management business, etc. PNB has earned many awards and accolades during the year in appreciation of excellence in services, Corporate Social Responsibility (CSR) practices, transparent governance structure, best use of technology and good human resource management.

Since its humble beginning in 1895 with the distinction of being the first Swadeshi Bank to have been started with Indian capital, PNB has achieved significant growth in business which at the end of March 2011 amounted to Rs 5,55,005 crore. PNB is ranked as the 2nd largest bank in the country after SBI in terms of branch network, business and many other parameters. During the FY 2010-11, with 39.16% share of CASA to domestic deposits, the Bank achieved a net profit of Rs 4433 crore. Bank has a strong capital base with capital adequacy ratio of 12.42% as on Mar’11 as per Basel II with Tier I and Tier II capital ratio at 8.44% and 3.98% respectively. As on March’11, the Bank has the Gross and Net NPA ratio of 1.79% and 0.85% respectively. During the FY 2010-11, its ratio of Priority Sector Credit to Adjusted Net Bank Credit at 40.67% & Agriculture Credit to Adjusted Net Bank Credit at 19.30% was also higher than the stipulated requirement of 40% & 18% respectively.

The Bank has been able to maintain its stakeholders’ interest by posting an improved NIM of 3.96% in Mar’11 (3.57% Mar’10). The Earning per Share improved to Rs 140.60 (Rs 123.86 Mar’10) while the Book value per share improved to Rs 661.20 (Rs 514.77 Mar’10). Punjab National Bank continues to maintain its frontline position in the Indian banking industry. In particular, the bank has retained its NUMBER ONE position among the nationalized banks in terms of number of branches, Deposit, Advances, total Business, Assets, Operating and Net profit in the year 2010-11. The impressive operational and financial performance has been brought about by Bank’s focus on customer based business with thrust on CASA deposits, Retail, SME & Agri Advances and with more inclusive approach to banking; better asset liability management; improved margin management, thrust on recovery and increased efficiency in core operations of the Bank. The performance highlights of the bank in terms of business and profit are shown below:

Rs. In Crore
Parameters Mar'09 Mar'10 Mar'11 CAGR(%)
OperatingProfit 5690 7326 9056 26.16
NetProfit 3091 3905 4433 19.76
Deposit 209760 249330 312899 22.14
Advance 154703 186601 242107 25.10
TotalBusiness 364463 435931 555005 23.40

Bank always looked at technology as a key facilitator to provide better customer service and ensured that its ‘IT strategy’ follows the ‘Business strategy’ so as to arrive at “Best Fit”. The Bank has made rapid strides in this direction. All branches of the Bank are under Core Banking Solution (CBS) since Dec’08, thus covering 100% of its business and providing ‘Anytime Anywhere’ banking facility to all customers including customers of more than 3200 rural & semi urban branches. The Bank has also been offering Internet banking services to its customers which also enables on line booking of rail tickets, payment of utilities bills, purchase of airline tickets, etc. Towards developing a cost effective alternative channels of delivery, the Bank with 5050 ATMs has the largest ATM network amongst Nationalized Banks.

With the help of advanced technology, the Bank has been a frontrunner in the industry so far as the initiatives for Financial Inclusion is concerned. With its policy of inclusive growth, the Bank’s mission is “Banking for Unbanked”. The Bank has launched a drive for biometric smart card based technology enabled Financial Inclusion with the help of Business Correspondents/Business Facilitators (BC/BF) so as to reach out to the last mile customer. The Bank has started several innovative initiatives for marginal groups like rickshaw pullers, vegetable vendors, dairy farmers, construction workers, etc. Bank has launched a welfare scheme of adoption of village viz., “PNB VIKAS”. Under the scheme, Bank has selected 117 villages (60 in lead districts and 57 in non lead district) in different circles for all-round improvement in the living standards of the villagers. Besides, Bank has formed “PNB PRERNA”, an association of the wives of the Bank’s senior management. The association through its voluntary initiatives has undertaken activities like distribution of food to the poor and needy, provision of computers, books, stationary items to poor girl students at various orphanages and schools etc.

Backed by strong domestic performance, the Bank is planning to realize its global aspirations. Bank has opened one branch each at Kabul and Dubai, two branches at Hong Kong and an Off Shore Banking Unit at Mumbai. In addition to the above, Bank has Representative offices at Almaty, Dubai, Shanghai and Oslo, a wholly owned subsidiary in UK with 7 branches and a subsidiary each in Kazakhstan & Bhutan, and joint venture with Everest Bank Ltd. Nepal. During the year, Bank acquired majority equity stake of 63.64% in Dana Bank of Kazakhstan.

The slogan of Punjab National Bank is "The Name you can BANK upon". Punjab National Bank has more than 5000 banches across 764 cities in India. They serve over 37 million customers in India. They also have branches in Hong Kong, Dubai, Kabul, China, Oslo etc. They are India's second largest bank

What is meant by kiosk banking?
(briefly ATMs)
With over 1.2 million ATM's installed around the globe, the lowly non-cash/ATM financial kiosk rests in shadows. Nevertheless, financial institutions continue to look towards interactive kiosks to provide a growing list of services, and why not? Many are finding the interactive kiosk to be a powerful and low cost delivery tool in an increasingly competitive landscape. Self-service kiosks provide the link between meeting with your old banker friend, and an integrated retail delivery and customer relationship management (CRM) strategy so important to the progressive financier.

The industry association has estimated that financial related self-service kiosks comprise at least 10% of the self-service market, and expected growth figures for the next few years are close to 40%. With a buzz of uncertainty surrounding the future of financial kiosks, we set out to look for "what's to come" in the world of financial kiosks.

Spearheading a new generation of financial service kiosks is Charlotte, NC- based kiosk provider Source Technologies. Over the past several years the company has risen through the ranks of the kiosk world with the development of a proprietary line of kiosks offering everything from bill payments services for the unbanked, to a kiosk system that has over fifteen non-cash transaction capabilities.

In speaking with Source's president Miles Busby, we discovered that his company is betting big that this market is ready for takeoff. "Nearly 50% of our business is now dedicated to the financial kiosk area," noted Busby. "We see the market for conducting self-service financial transactions is growing significantly."

Busby believes this growth is the combination of many factors, but leading his list is customer acceptance of this technology. "Even back several years ago there were too many issues with developing these types of devices because of software and security issues. But today, these devices are working nice and we know customers will use these things," Busby remarked.

Source Technologies' main customer is a group who has been overlooked for quite a while, the credit union. The company believes that financial kiosks have the capability to deliver expansion potential for credit unions without requiring tremendous investments. "Finally, credit unions have a device that allows them to compete with bigger banks," stated Busby.

The new Financial Kiosk Terminal Source Technologies has developed is the mother of the all-in-one kiosk/ATM's. Their ST-3200 Walk-up unit features the ability to do standard ATM transactions, plus: check cashing, money transfers, cash deposits, check printing, money orders, statement printing, couponing, and ticketing. The ST-3200, from a hardware standpoint, features a 15" touchscreen (optional 21") and many other options such as MPEG full motion video, voice and audio capabilities, a digital camera, and even a phone center.

To get to the heart of what Busby was saying, we contacted New Jersey-based Paragon Services, Inc. Paragon is a credit union service organization (CUSO), which is owned by a credit union. The group is in the midst of developing an alternative-banking kiosk for credit unions.

"We already knew ATM's were out there working so we trusted the potential of the technology, but kiosks provide so many more services in an automated environment. We saw the kiosk as a huge cost savings potential vs. building new locations," said Charles O' Gorman, director of business development for Paragon Services, Inc.

The kiosk Paragon is planning has been designed around an employee group or union, who can place a kiosk where employees have an alternative to long lines or an inconvenient bank location. The kiosk will have most of the major functions of a live teller, plus being available 24/7, and will be much less expense than building an entire new branch bank.

Top 10 Reasons to Consider a Kiosk for Your Bank
1. Migrate customers from teller-based transactions to on-line banking to reduce costs.
2. Enhance customer satisfaction by providing needed Web-based services in the branch office.
3. Increase revenue and "share of wallet" by offering additional products and services via cross-sell and up-sell opportunities.
4. Acquire new customers via sign-up/opening an account.
5. Educate new and existing customers about service & product offering.
6. Initiate and provide rewards in the form of loyalty.
7. Provide service 24 hours a day, 7 days a week, in centralized locations.
8. Learn more about customer preferences by collecting vital data.
9. Provide additional training and educational services to employees.
10. Bridge language barriers with non-English speaking customers.

The banking industry is consolidating at an accelerating pace, yet no conclusive results have emerged on the benefits of mergers and acquisitions. In order to investigate the motives and results of each type of deal we consider separately acquisitions (that is, the purchase of the majority of voting shares) and mergers, using Italian data. Mergers seek to improve income from services, but the increase is offset by higher staff costs; return on equity improves because of a decrease in capital. Acquisitions aim to restructure the loan portfolio of the acquired bank; improved lending policies result in higher profits.

Why banks make Advances
The resources of banks are:
Deposits from public
Borrowings made by the bank
Moneys received by the bank for transfer from one place to another
Banks pay interest to their depositors. Banks in turn charge a higher rate of interest for the amount it gives as advances to its borrowers. The difference between these two rate of interest only helps bank meet its establishment expenses and also earn profit.
Advances are made in the form of loans –repayable over a period of time. (Education/Car/Consumer/Fixed Assets like House/machinery etc.)
As overdrafts – a limit will be sanctioned and the borrower can drawn funds upto that limit and he pays interest for the amount overdrawn by him.
Cash Credits - on the security of goods (work in process, finished goods etc .) – Open cash credit – goods stay with the borrower and he is expected to maintain goods to meet the debit balance in his cash credit account. Key cash credit goods lie under lock and key of bank. Famous form of lending is open cash credit.
Foreign exchange advances – packing credit, export credit, bills purchase facility etc.


PUNJAB NATIONAL BANK - INTERVIEW Reviewed by sambasivan srinivasan on 3:10:00 AM Rating: 5

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