Transcription
AMITY SCHOOL OFINSURANCE, BANKINGANDACTURIAL SCIENCEA SUMMER INTERNSHIPPROJECT REPORT ONCUSTOMER SATISFACTION OFSAVING ACCOUNT HOLDERSOF PUNJAB NATIONAL BANKSUBMITTED BYSUBMITTED TO
CERTIFICATEThis is to certify that Mr. Anmol Sethi has completed under my supervision his researchproject report on A STUDY ON CUSTOMER SATISFACTION OF SAVING BANKACCOUNT HOLDERS OF PUNJAB NATIONAL BANK .The work embodied in this project is original and is of standard expected of an MBA studentnad has not been submitted in the part or full to this or any other university for the award ofany degree or diploma. He has completed all the requirements of the guidelines for theResearch Project Report and the work is fit for the evaluationSENIOR MANAGER
TABLE OF TRODUCTIONOF THE TOPICLITERATUREREVIEWOBJECTIVE OFTHE STUDYNEED OF STUDYSCOPE OF STUDYRESEARCHMETHADOLOGYRESEARCHDESIGNSAMPLE DESIGNAREA OFRESEARCHTARGETPOPULATIONSAMPLE FRAMESAMPLING UNITSAMPLINGMETHODDATACOLLECTIONMETHODDATA ANALYSISTOOLSDATA ANALYSISFINDINGSSUGGESTIONS
910 APPENDIXCONCLUSIONSREFRENCES ANDBIBLIOGRAPHYQUESTIONNAIRE
PUNJAB NATIONAL BANKMISSIONTo be a leading global bank with pan India footprints and become a household brand in theindo gigantic plains providing entire range of financial products and services under one roof.VISIONBanking for unbanked
CHAPTER 1INTRODUCTION ABOUTBANKPUNJAB NATIONAL BANK
Punjab national bank is an Indian based bank located in New Delhi . it wasfounded in 1894 under the strong existence of Lala Lajpat Rai with more than120 years of strong existence and 6081 total branches all over India including 5foreign branches and 6940 ATM’S till march 2014.punjab national bank servingmore than 8.9 crores esteemed customers. Punjab national bank is one the thirdlargest bank among ICICI bank ,Bank of Baroda and State bank of India hascontinued to provide prudent and trustworthy banking services to its esteemedcustomers .the bank enjoys the strong fundamentals, large franchise value andgood brand image. To meet the growing expectations of the people the bankoffers various different products and services.PNB has a banking subsidiary in the UK, as well as branches in Hong Kong, Dubai andKabul. It has representative offices in Kazakhstan, Dubai, Shanghai ,Norway and Australia.Punjab national bank has various subsidiaries and joint ventures as the bank is third largestpublic sector bank in Indian. Punjab national bank has various subsidiaries and joint venturesin India with various companies and its own subsidiaries.SERIAL NUMBERNAME OF THEENTITYCOUNTRYPROPOTION OFOWNERSHIP1PNB GILTS LTDINDIA74%2PNB HOUSINGFINANCE LTDINDIA51%3PNB INVESTMENTFINANCE LTDPNB INSURANCEBROKING LTDINDIA100%INDIA81%4PNB GILLS LIMITEDPNB gills ltd a subsidiary of the bank is engaged in the business of trading in governmentsecurities ,treasury bills, and non SLR investments. it is also engaged in dealing with Moneymarket instruments and mutual funds. The company is listed at NSE and BSE.PNB HOUSING FINANCE LIMITED-
PNB housing finance is engaged in providing the loans for purchase ,construction and upgradation of dwelling unit. The company provides loans for construction or purchase of house/flat od development authorities and properties and also from private builders and renovationand repairs.PNB INVESTMENT SERVICES LIMITEDPNB investment services limited is a wholly owned subsidiary has been set up by the bankfor carrying out Merchant Banking Business. it provides services for project appraisal, loansyndication, debt replacement to execute IPO’S/FPO’S.It is registered with SEBI as category1 merchant banker.HISTORY OF PUNJAB NATIONAL BANKIn the annals of Indian History , the last decade of ninetenthh century has a special place .itwas during this period that a reawakening of India began and the nationalist fervour startedasserting itself. The bank was a part the swadeshi movement. It was owned by the Indianpeople and would worked for the Indian people specially at a time “when Indian capital wasbeing used to run English banks and companies the profits accuring from which went entirelyto the Britishers, whilst Indians had to contend themselves with small interest on their owncapital.The bank opened for business on 12th April ,1895. The first board seven directors comprisedof S Dayal Singh, Lala Lalchand, Kali Prosanna Roy,eminent Bengali pleader,Lala Harkishan Lal,EC Jessa Wala ,Lala PrabhuDaya,Bakshi Jaishree ram and Lala Dholan das .thus the Bengali, parse and a sikh and a fewhindu joined hands in a purely national and cosmoplitian spirit to find this bank which opensits door to the public on 12th april,1895.they went about it with a Missionary Zeal.S. DayalSingh was the first chairman, Lala Har Kishan lal, the first secretary to the board and ShreeBulaki Ram Shastri Barister at Lahore, was appointed manager.A Maiden dividend of 4% was declared after only seven months of operations. Lala lajpat Raiwas the first to open an account with the bank which was housed in the building opposite toArya samaj mandir in Anarkali in Lahore. His younger brother joined the bank as a manager.Authorised total capital of the bank was Rs. 2lacs, the working capital was Rs. 20,000. It hadtotal staff strength of nine and total monthly salary amounted to Rs. 320.The first branch outside Lahore was opened in Ravalpindi 1900. The bank made slow butsteady progress the first decade of their existence. Lala Lajpat Rai joined the board ofdirectors soon after in 1913, the banking industry in India was hit by severe crisis forming thefailures of People’s Bank of India founded by Lala Harkishan Lal. As many as some leadbanks failed in the crisis Punjab National Bank survived. The years 1946-1936 were turbulentloss ridden onces for the banking industry the world over. It was during this period that theJaliawala Bagh committee account was opened in a bank which in a decade that followed wasoperated by Mahatma Gandhi and Pt. Jawahar Lal Nehru. The five years from 1941-1946were the once of unprecended growth from a modest base of 71 the number of branches
increased to 272. The deposits grew from 10 crore to 62 crore on 31st march, 1947 the bankofficials decided to leave Lahore and transfer the registered office of the Bank to Delhi andpermission for transfer was obtained from the Lahore High court June 29,1947.In 1951 the Bank took over the assets and liabilities of Bharat Bank Limited and became thesecond largest bank in the private sector. In 1962 it amalgamated into commercial bank withit. From its dwindled deposits for Rs. 43 crores in 1949 it rose to cross to Rs. 355 croremarked by july 1969. Its number of offices had increased to 569 and advances from Rs. 19crore in 1949 to Rs.243 crores by July 1969 when it was nationalised. The government of India nationalised PNB and 13 other major banks on 19 July 1969.In 1978 PNB opened a branch in London.In 1986 the Reserve Bank of India required PNB to transfer its London branch to SBI.In that same year PNB acquired Hindustan commercial Bank. The acquisition addedHindustan’s 142 branches to PNB networks.In 1993 PNB acquired new Bank of India.In 2003 PNB took over Nedumgadi Bank, the oldest private sector bank in Calcutta.In 2004 PNB established a branch inKabul, Afghanistan a representative in Shanghaiand other in Dubai.PN B representative office in Shanghai and another in Dubai. PNB also established analliance with Everest Bank in Nepal that permits migrants to transfer funds easilybetween Inida and Everest’s 12 branches in Nepal currently PNB owns 20% ofEverest’s Bank.In January 2009 PNB established a representative office Oslo, Norway.In September 2011, PNB opened a representative office in Sydney, Australia.In December 2012, PNB signed an agreement with US based life insurance companyMetlife to acquire 30% stake in Metlife, Indian affiliate Metlife limited the companywould be renamed as PNB Metlife India Limited and PNB would sell Metlife’sproducts in its branches.CURRENT SCENARIO OF THE BANK Total business of the bank reached to Rs 800666 crore as against Rs 700356 crore inMarch 2013 showing a y-o-y of 14.3% Deposits of the bank rose to Rs 451397 crore as on 31.03.2014 from Rs391560 as on31.03.2013 exhibiting y-o-y growth of 15.3% CASA deposits increased to Rs 172872 crore as on March 14 from Rs 153344 crore inMarch 13 recording a growth of 12.7%.Domestic CASA share has improved to 41.3%from 40.9%in March 13. Its was an increased focus on saving deposits and a successful campign was organisedduring the year with active participation of employees resulting an increase in savingdeposits to Rs 141371 crore showing a growth of 14.5% .current deposits rise by5.4% to Rs 31499 crore
Advances of the bank stood at Rs 349269 at the end of march 14 as against Rs308796crore at the end of March 13 showing a growth rate of 13.1%. Credit deposits ratio works out to be 77.38% as an march 14. As on March 14 gross NPA stood as Rs 18880 crore with a Gross NPA ratio of 5.25% As on March 14 Net NPA stood at Rs 9917 cr ore with a net NPA ratio of 2.85% Provision Coverage ratio stood at Rs 59.07%. Total Domestic branches has been rose to 6200 Total business crosses 8 Laks cores Operating profit for FY 2014 above Rs 11300 cores Net Interest Margin 3.44% Net interest income for FY grows by 8.7%BusinessDomestic CASAshareOperating profitNet Interest MarginBook value share Rs 800666 cr41.3% 14.3%Rs 11384 cr3.44% 4.4%7.7%Rs 952.50 7.7%Net Interest margin for FY14 is 3.44%Return on assets stood at .64% for FY14Cost of deposit stood at 6.14% for Q4FY14 and 45.06% for FY 14CRAR of the bank as per as basel 3 was 11.52%Retail loans outstanding grew by 24.1%on y-o-y basis basis to reach Rs 38864 croreat the end March 14 as against Rs 31310 crore in corresponding period last year.Outstanding agriculture advances reached Rs53053 crores.49.82 lakhs KISAN CREDIT CARDS were issued till march 31st 2014.Under Financial inclusion plan bank has coverd aal villages with population over2000as allocated by SLBC for providing banking services during FY2014.Bank has opened 100.53 laks BSBDA accounts and 2.01 lakhs General credit cardswere issued.Recently Cash deposit machines have been installed in the branches providing a selfservice terminal where customers can deposits the cash which get credited to theiraccount on real time basis.Self service Pass book printer terminals have been installed in the branches and elobbies which help the customers to get the passbooks updated at their conveniencePunjab National Bank has been awarded with the GOLDEN PEACOCK BUSINESSEXCELLENCE AWARD 2014.PNB bank has also awarded with the ANNUAL SOCIAL BANKINHGEXCELLENCE AWARD 2014.PNB bank has also awarded with the VIGILANCE EXCELLENCE AWARD IN2014.
CHAPTER 2INTRODUCTION OF TOPIC
CUSTOMER SATISFACTIONIt has become very important for the banks to understand the customer needs andrequirements so that they can serve customers properly. though majority of customers aresatisfied with their banks service still bank needs to focus on customer experience across thebanking channels. it is very important for the banks to gauges the how the customer perceivesthe quality of interactions with their banks across the dimensions like products, channels andcustomer transactions .Customer satisfaction a term frequently used in marketing is a measure of how products andservices supplied by the company meet or surpass customer expectations. Customersatisfaction is defined as the number of customers or the percentage of customers whosereported experience with a firm ,its products and its services exceeds specific satisfactiongoals.Customer satisfaction provides a leading indicator of customer expectations , perceptionsand loyalty. Customer satisfaction tells how the customer thinks to buy products by its ownperceptions and expectations .It is most important indicator by which data is collected in mostperspective manner and most frequently indicators of market perceptions. Customersatisfaction is the most ambiguous and abstract concept and the actual manifestations of thestate of satisfaction will vary from person to person and product service to product services.The sate of sati sfaction depends on a number of both psychological and physical variableswhich correlate with the satisfaction behaviours such as return and recommended rate. Thelevel of satisfaction can also vary depending on the other options the customer may have andother products against which the customer can compare the organizations services.SAVINGS ACCOUNTSavings Account is the account maintained by Indian financial institutions that pay intrest.These accounts let customers set aside their portion of their liquid assets while earning amonetary return. The interest rates vary as per as the amount of money deposited in thesaving bank account, scheme opted, and its maturity range .it is also subject to the currenttrend of banking policies.Punjab National bank have diversified themselves into many fields and also diversifiedthemselves their savings account departments into many fields. Punjab National Bank havedifferent types of savings account which caters all including each and every indivisual tomeet the expectations of the customers .they have diversified their savings accounts into abroad acco unts that gives customers to cater their needs according to their needs andpreferences.Various Saving Accounts that has been offered by the bank is as follows Saving Deposit General Account PNB Premium Saving Account
PNB prudent SweepTotal Freedom Salary AccountHigh End Salary AccountFamily Suraksha Bachat khathaPNB Junior SF AccountPNB Vidyarthi SF AccountBasic Saving Bank deposit Account (BSBDA)PNB Rakshak SchemePNB Shikshak Sweep SchemePNB Shikshak Overdraft SchemeScheme for Providing Overdraft Facility to PensionersVarious Above Accounts are served by the bank to their customers to cater their needs andexpectations according to their requirements. Punjab National Bank have wide variety ofAccounts and other services that they provide to their customers including Current Account,Fixed Deposits ,Recurring Deposits, Credit Schemes, Capital Gain Account Schemes ,Other services such as Retail Banking , personal Banking , social banking , Agriculturebanking, Corporate Banking, International Banking, International Banking etc are served bythe bank to their services to cater the needs of customers.With the current change in the functional orientation of banks the purpose of banking isredefined. The main driven for this change is changing the customer needs and expectations.Customers in today’s modern India want no longer queues to wait and their precious time inbanking transactions. This change in attitude of the people have changed with change intechnology as more and more technology is advanced erather than opting for oldertechnology. with the emergence of universal banking banks aims to provide all bankingproducts and services offering under one roof and in one hands of the customer. With theemergence of globalization and technology advancement the banking industry whetherprivate or public sector banks had one under drastic change to prove themselves the leadersof banking industry and to be one of the mot successful banks among others in thiscompetitive environment.
LITERATURE REVIEWCustomer Satisfaction is one of the most important and essensitial elements of customerretention, customer loyalty, product/ service repurchase. The art and science of customersatisfaction involves strategically focusing on creating and reinforcing pleasurable experince.So it is all important aspect in terms of customer satisfaction.According to oliver 1980 Customer satisfaction is defined as fully meeting the expectationsof customers and feeling and attitude of customer towards a product or service after it hasbeen experienced.According to Crosby and Stephens Customer satisfaction includes three importantdimensions namely satisfactory dimensions with the personnel, satisfaction with theorganization and satisfaction with the core service or product which ultimately results in goodcustomer experience.Customer Satisfaction : A study of Bank Customer Retention In New zealand , AuthorsDavid Cohnen, Christopher Gan, Hua Hwa, Au Yong and Esther Choong (March 2006)Customer Retention is an important element of banking strategy in today increasinglycompetitive environment. Bank management must identify and improve upon the factors thatcan limit customer defection. This include performance of the employee and willingness tosolve the problems, level of knowledge and friendliness, communication skills, selling skillsamong others. Furthermost the customer defection can also be limit and reduced ny reductionrates of the bank, policies and location of the branches.There are many arguments that can be carefully considered the factors that might increasedcustomer retention rates. Several studied have been emphasized the significance of thecustomer retention in the banking industry. However there are little effort to investiogate thefactors that might lead to customer retention.Customer Satisfaction can be achieved by promoting the strengths, by focusing to improveweaknesses and by monitoring for possible future improvements.Customer Satisfaction elements can be prescribed as A perfect product, Delivered by caring,friendly person in a timely fashion with changing environment and the support of an effectiveproblem resolution solution.
CHAPTER 3OBJECTIVE OF THE STUDY
As this Study is based on Customer Satisfaction with reference to other factors that affectcustomer satisfaction my objective to carry out this study is To study the CustomerExpectations from Saving Bank Account of Punjab National Bank. This study also helps us toanalyse that how much customers are satisfied with the services of Punjab National Bank andit will give an idea what rae the factors that will affect the customer expectations.NEED OF STUDY To analyse the expectations of customers. To give an brief idea of how bank can achieve the level of satisfaction of customers. To analyse the customer loyalty in terms of customer satisfaction.SCOPE OF STUDY To Analyse the Customer level index in terms of customer satisfaction to test howmuch customers are satisfied with the services of Punjab National Bnak. To Study the areas of improvement within the services of Punjab National Bank. This Study will also help us to know that how much customers are awared ofservices of Punjab National Bank.\
CHAPTER 4 –RESEARCH METHODOLOGY
Marketing research is the systematic and objective identification, collection, analysis, disseminationand use of information for the purpose of assisting management in decision making related to theidentification and solution of problems in marketing. Marketing Research is the collection andanalysis of data from a sample of individuals or organizations related to their characteristics,behaviour, attitudes, opinions or possessions. It includes all forms of research such as consumer andindustrial survey, psychological investigations, observations and panel studies.It can be defined as the means of acquiring information to assist in the making of marketingdecisions under uncertainty.It is the systematic and objective search for, and analysis of, information relevant to theidentification and solution of any problem in the field of marketing.Marketing Research is the systematic design, collection, analysis and reporting of data andfindings relevant to a specific marketing situation facing the company.Marketing research is often partitioned into two sets of categorical pairs, either by target market orsegment market. Consumer marketing research, and Business-to-business (B2B) marketing researchOr, alternatively, by methodol
Punjab national bank is an Indian based bank located in New Delhi . it was founded in 1894 under the strong existence of Lala Lajpat Rai with more than 120 years of strong existence and 6081 total branches all over India including 5 foreign branches and 6940 ATM’S till
