CUSTOMER RELATIONSHIP MANAGEMENT ON EFFECTIVE WAY OF KNOWLEDGE MANAGEMENT FOR CUSTOMER SATISFACTION by Sanjay Gupta

TABLE OF CONTENTS STUDENT DECLARATION

ACKNOWLEDGEMENTS

INTRODUCTION

BANKING STRUCTURE

COMPANY PROFILE

CUSTOMER RELATIONSHIP MANAGEMENT

OBJECTIVE OF THE STUDY

RESEARCH METHODOLOGY

LIMITATION

DATA ANALYSIS

FINDINGS

CONCLUSION

QUESTIONNAIRE

BIBLIOGRAPHY

STUDENT DECLARATION I am kartikey misrhra student of MBA here by declares that the project report titled “CUSTOMER

RELATIONSHIP

MANAGEMENT

EFFECTIVE

WAY

KNOWLEDGE MANAGEMENT FOR CUSTOMER SATISFACTION” is completed and submitted under the guidance of “Mrs Arpita allen is my original work.

The imperial finding in this report is based on the data collected by me. This project has not been submitted to MIT Meerut for the purpose of compliance of any requirement of any examination or degree.

KARTIKEY MISHRA Roll No. 0929270018 MBA IV Semester

ACKNOWLEDGEMENTS

I am also extremely grateful to Mrs arpita allen (Faculty, Management, MIT, Meerut) to have given me this opportunity to work with him and gain valuable insights into the enticing world of online share trading. I am indebted to all staff members of PNB, New Delhi for their valuable support and cooperation during the entire tenure of this project. Not to forget, all those who have kept my spirits surging and helped me in delivering my best.

Kartikey mishra MBA. IV Sem.

INTRODUCTION INTRODUCTION

Customer service has great significance in the banking industry. The banking system in India today has perhaps the largest outreach for delivery of financial services and is also serving as an important conduit for delivery of financial services.

While the coverage has been

expanding day by day, the quality and content of dispension of customer service has come under tremendous pressure mainly owing to the failure to handle the soaring demands and expectations of the customers.

Banks are in the business of marketing their services. Amongst the various indicators of Bank’s performance, the most crucial one is the level of satisfaction of its customers. A positive and sympathetic disposition with a sincere desire to help accomplish his job, satisfies a customer. The bank has a strong belief that a satisfied customer is the foremost factor in developing business.

Meeting the legitimate aspirations of its customers will enable the bank to maintain its

image, create confidence and attract funds comparatively at low cost in a competitive environment. Ensuring improvement in the customer service rendered by the banks has also been the constant endeavour of RBI. This is evidenced by a series of studies conducted by various committees such as the Talwar Committee, Goiporia Committee, Tarapore Committee etc. to bring in improvement in performance and procedure involved in the dispension of hasslefree customer service. 4

In addition, RBI has been actively engaged in the review, examination and evaluation of customer service in banks. It has constantly brought into sharp focus the inadequacy in banking services available to the common person and the need to benchmark the current level of service, review the progress periodically, enhance the timeliness and quality, rationalize the processes taking into account technological developments, and suggest appropriate incentives to facilitate change on an ongoing basis through instructions/guidelines. Various instructions issued in this regard may be summed up as under:

Instructions issued on the basis of the various Working Groups/ Committees on Customer Service in Banks.

ii)

Instructions issued on the basis of Code of Bank’s Commitment to customers (BCSBI Code)

iii)

Instructions issued on the basis of Board approved policies on Customer Service i.e.

a. Model Policy on Bank Deposits b. Cheque Collection Policy c. Compensation Policy of Bank d. Grievance Redressal Policy

(iv)

Other instructions:

a. Opening/Operation of Deposit Accounts b. Levy of Service Charges c. Service at the Counters d. Guidance to customers and Disclosure of information e. Operation of Accounts by Old & Incapacitated persons f. Providing banking facilities to Visually Impaired Persons g. Remittance h. Cheque Drop Box facility i. Collection of instruments j. Dishonour of Cheques – Procedure thereof k. Dealing with Complaints and Improving Customer Relations l. Erroneous Debits arising on fraudulent or other transactions m. Extension of Safe Deposit Locker / Safe Custody Article Facility n. Nomination Facility o.

Settlement of claims in respect of deceased depositor -Simplification of procedure

p. Customer Confidentiality Obligations q. Financial Inclusion r. Miscellaneous

BANKING OMBUDSMAN SCHEME 2006

RBI introduced Banking Ombudsman Scheme in 1995 to provide an expeditious and inexpensive forum to bank customers for resolution of their complaints relating to banking services. The scheme was revised in 2002 to cover Regional Rural Banks and to permit a review of the Awards against the Banks by RBI. Scheme was further revised in 2006 with much wider scope by including several new areas of customer complaints concerning deficiency in banking services including Credit Accountds.

Copy of Banking

Ombudsman Scheme 2006 is given as per Annexure ‘A’.

Compliance requirement where Awards are passed :

(i)

Under Clause 12 (i) if a complaint is not settled by agreement within a period of one month from the date of its receipt, the Banking Ombudsman would pass an ‘Award’ or reject the complaint. In case an Award is passed, its copy is sent to the complainant and the Bank named in the complaint.

(ii)

As per extant guidelines, on receipt of the ‘Award’ passed by the Banking Ombudsman in favour of the complainant, it should be properly examined to address issues, whether human or systemic, leading to the complaint and consequently to the Award and immediately thereafter, the Award passed should be submitted to Customer Accounte Centre, Head Office along with the comments and recommendations of Circle Head thereon, giving justification to accept or to go in for appeal against the Award.

(iii)

The status is to be placed to CMD on the Bank’s stand to accept the ‘Award’ or to go for an appeal.

Further, in case Circle Office considers that the ‘Award’ passed is not based on the full facts or is not acceptable to the Bank, the entire case is to be sent to Customer Accounte Centre, Head Office along with justification for filing an appeal so that the matter could be placed before CMD, who is the Competent Authority to grant permission for filing an appeal with the Appellate Authority i.e. Dy.Governor, RBI, Mumbai.

The guidelines on the subject are reproduced

hereunder for ready reference.

“In terms of Clause 12 (1) of Banking Ombudsman Scheme 2006, any person aggrieved by an Award under the above clause or rejection of a complaint for the reasons referred to in sub clauses (c) to (g) of clause 13, may within 30 days of the date of receipt of communication of award or rejection of complaint, prefer an appeal before the Appellate Authority. The Bank can appeal only with the prior sanction of their Chairman & Managing Director or in his absence, Executive Director as per Clause 14 of the Banking Ombudsman Scheme.”

b) In case Circle Office is of the opinion that the Bank should not go for an appeal against the Award pronounced by the Banking Ombudsman, a copy of the Award along with justification/views of the Circle Office be forwarded to

Customer Accounte Centre, Head Office, immediately after its receipt so that the same could be placed before the CMD as the Competent Authority for approval.

It is pertinent that all Awards passed by the Banking Ombudsman should be brought to

the notice of Customer Accounte Centre, Head Office for the following reasons:-

(a)

Status of the cases filed with the Ombudsman and in particular, all the Awards are required to be placed before the Customer Service Committee of the Board of the Bank as per RBI directives.

(b)

All the Awards remaining unimplemented for more than three months with the reasons are required to be reported to the Board.

(c)

Status of cases with Ombudsman is reviewed by RBI every quarter.

INTERNAL MACHINERY TO HANDLE CUSTOMER COMPLAINTS/ GRIEVANCES:

CUSTOMER SERVICE COMMITTEE OF THE BOARD

Board in its meeting held on 20th November, 2004 approved Constitution of Customer Service Committee of the Board (CSCB). The meeting of the said Committee takes place once in three months. Minutes of the meetings are placed to the Board only after the same have been

confirmed by the concerned Committee. The above Committee is chaired by the Executive Director and other Directors of the Bank are its members. The Committee is discharging the following functions :

Oversee the functioning of the ad hoc committee of the Bank so long as it operates including compliance of the recommendations of the Committee on procedures and performance audit on public services (Tarapore Committee).

Initiating innovative measures for enhancing the quality of customer service and improving the level of customer satisfaction for all categories of clientele at all times.

Oversee and review/modify the initiatives taken by the Standing Committee on Customer Service.

The decision of the Committee’ meetings are conveyed to the respective Circles, concerned Divisions/Deptt. of HO for examining the issues/or taking necessary action in the identified areas for improving the customer service and level of convenience of customers from time to time. It is, therefore, emphasized that all Circle Heads/ concerned Divisions must comply with the directives of the Committee expeditiously and report back to Customer Accounte Centre, HO with the Action Taken Report on the respective issues to enable to place the matter before the Customer Service Committee of the Board in its next meeting.

STANDING COMMITTEE ON CUSTOMER SERVICE

In order to support broad-based improvement in customer service in relation to various banking services, Standing Committee on Customer Service was constituted as per Reserve Bank of India instructions conveyed vide Guidance Note dated 16.04.2005.

This

Committee is chaired by the Executive Director and CGM/GMs of other Divisions are its members. With a view to enable an independent feed back on the quality of customer service rendered by our bank, two non-official members are included as members of the said Committee for a period of one year. The meetings of the Committee are held on quarterly basis.

The Committee evaluates feed back on quality of customer service

received from various quarters. Besides this, Committee also reviews the feed back on customer service, implementation of commitments in the Code of Bank’s Commitments to Customers and complaints related to non-compliance thereof.

The Committee also ensures that all regulatory instructions regarding customer service are followed by the bank.

Towards this, the committee obtains necessary feed-back/

information from Circle Offices / Functional Heads of various Divisions at HO.

The Committee also considers unresolved complaints/grievances referred to it by functional heads responsible for redressal and offer their advice.

Besides, the Committee also evaluates the broad nature, source of complaints and suggests for implementation of various steps/ measures for resolving the complaints as well as preventive steps to ensure that these do not recur.

NODAL OFFICER AND OTHER DESIGNATED OFFICIALS TO HANDLE COMPLAINTS AND GRIEVANCES

(i) Nodal Officer : Bank has appointed General Manager, Customer Accounte Centre, HO as Nodal Officer at HO level who is responsible for implementation of customer service and grievance redressal mechanism. Likewise, at Circle Offices, Circle Heads are the Nodal Officers for the respective Circles and are responsible for implementation of customer service and complaint handling for the branches under their administrative control.

(a) The names, addresses, email and contact number of Nodal Officers must be prominently displayed on the Notice Board at the branches. (b) As per Ombudsman Scheme 2006, Circle Heads are to appoint Nodal Officer for their offices and inform the name of such Nodal Officer to the respective office of the Banking Ombudsman under whose jurisdiction the Circle Office falls. The Nodal Officer so appointed is responsible for representing the bank and furnishing information to the Banking Ombudsman in respect of complaints filed against the Bank. Circle Head must ensure that the names of the designated Nodal Officer for the Banking Ombudsman Schemes have been informed to the Banking

Ombudsman as well as to the State Level Banker Committee (SLBC) Convener Bank.

(ii)

Code Compliance Officer :

Bank has adopted the BCSBI’s Code of Bank’s

Commitments to customers. It has been placed on bank’s website www.pnbindia.com. To ensure implementation of Code of Bank’s Commitment to Customers, bank shall have a Code Compliance Officer at each of its controlling offices above the level of the branch and at the Head Office. General Manager, Customer Accounte Centre has been appointed as a Principal Code Compliance Officer at Head Office level.

Circle Head must ensure that an officer not below the rank of Scale-IV be designated as Code Compliance Officer at theirs. The names, addresses, email and contact number of Code Compliance Officer be displayed at the branches.

Complaints relating to non-

compliance to the provisions of Code of Bank’s Commitments are lodged with the Code Compliance Officer.

10.

COMPLAINT REGISTRATION

A customer may lodge complaint either in writing or through e-mail if he is not satisfied with the services provided by the bank. All complaints will be recorded by the bank in a database.

The database, along with the acknowledgement letter and other

correspondence will be preserved for at least three years for future reference. Arrangements for receiving complaints and suggestions are given hereunder :

(i) Written complaints

(a)

Complaint forms have been provided at all branches and also available at bank’s website www.pnbindia.com under section ‘Complaints’. Complaint form must be given to the customer on demand by the Branch Manager.

(b) On submission of complaint, Branch Manager must give its acknowledgement to the customer. (c) Complaint Book in perforated form (Form 1013) is also available at all the branches. It should be provided to the customer on demand if he intends to record his grievances therein.

(ii) Complaints over telephone

(a) The complaint may be lodged with the Chief-Host/Nodal Officer in Circle Office of the concerned branch or to the Branch Manager over telephone. The name and telephone number of Chief-Host/Nodal Officer of the concerned branch are displayed in the branches. (b) The complaint received on telephone be handled with accounte and proper reply should be given to the customer. This will prove helpful in establishing and maintaining good relation with all concerned while enhancing image of the bank in the eyes of public. (c) Good manners on telephone go a long way in building up the image of caller and that of his /her organisation.

(iii) Customer Relationship Centre

(a) A complaint can also be reported to our Customer Relationship Centre on Toll Free Number 1800 180 2222, accessible 24 hours from MTNL/BSNL landline phones throughout India or 0124-2340000 – a paid number, which is accessible from landline as well as mobiles of any telecom operator. (b) Circle Head must ensure that the designated officer at the Circle Office / Branch Manager browse the site regularly to ascertain the status of complaints registered against branches of their Circle, if any. (c) The resolution against the complaints is to be updated in the respective column so that the customer can be apprised about status of the complaint if he/she contacts the Customer Relationship Centre subsequently.

(iv) Complaints through email Customer can submit complaint through e-mail also. Circle Head to ensure that email addresses of the Nodal Officer and Code Compliance Officer have been provided at the branches under their jurisdiction.

11.

EDUCATING THE COMPLAINANT Nodal Officer of the concerned Circle Office shall inform the complainant about the resolution/remedial action taken/bank’s views on the complaint.

If the complainant

accepts it or fails to respond within 7 days, complaint would be closed.

In case the complainant rejects the remedial action taken/bank’s views, it would be recorded and complainant would be informed the alternative recourses available to him : Directorate of Public Grievances, Govt. of India, Cabinet Secretariat, 2nd Floor,

(i)

Sardar Patel Bhawan, Sansad Marg, New Delhi.

(ii) The Banking Ombudsman has 15 offices located mainly in State Capitals.

Customer

may approach the Banking Ombudsman provided his written representation to the bank has been rejected or he has not received any reply within a period of one month after the bank has received his representation or the complainant is not satisfied with the reply given to him by the bank. Name & address of the Banking Ombudsman of the area concerned has been displayed on the Comprehensive Notice Board in all the branches. (iii) The District Consumer Forum under Consumer Protection Act, 1985.

12.

INTERACTION WITH CUSTOMERS Some of the complaints arise on account of lack of awareness amongst customers about the

Bank

services.

The

bank

recognizes

that

customer’s

expectations/requirements/grievances can be better appreciated through personal

interaction with customers by bank’s staff which also help the customers appreciate banking services better. In view of this, following arrangements have been made : (i)

Personal Hearing On 15th of every month (next working day in case 15th is a Saturday/holiday/closed day); customer can meet the Branch Manager/Circle Head/Chairman & Managing Director in their office from 3 pm to 5 pm for redressal of his grievances as well as for offering suggestions.

(ii)

Branch Level Customer Service Committees Constitution of Customer Service Committees in all branches/Circle Offices with greater involvement of customers, Senior Citizens / staff alike to study / discuss complaints / suggestions, cases of delay, difficulties faced / reported by customers / Members of Committee and evolve ways and means of improving customer service. Date and time of meeting is to be displayed in advance in the Branch so that customers from cross sections of society can attend the same.

The Customer Service Committee will meet at regular intervals and at least once in a month preferably on a common date in all branches as decided by Circle Office.

(iii) Circle Head must ensure that : (a) Customer Service Committee Meetings are being regularly held at branches and minutes of the same are being obtained and monitored at their office and necessary corrective action is being taken wherever necessary.

(b) Further, the Incumbents/staff of branches which have received large number of complaints in the past few months are being called to participate in the Monthly Circle Level

Customer Service Committee Meeting wherein the reasons for

complaints are analysed and appropriate preventive/corrective/reformative measures are implemented to bring about improvement in the customer service. (c) Branches/Circle Offices should also incorporate in the copy of minutes the suggestions/ actions where decision is required to be taken at higher level in order to improve customer service on continuous basis. Circle Office in turn shall take up with the concerned Division at Head Office level for their consideration.

(iv)

Customer Relation Programmes The system of Customer Relation Programme (Customer Meet) was introduced in May 1985. Circle Offices are required to convene special meeting of customers drawn from cross section of our clientele ensuring proper representation within the city where the Circle Office is located, at least twice a year. It is important that customer meet should be organized and customers of various branches be invited to participate.

The date, time and venue of this meet be displayed in the concerned

Branches of the Circle well in advance.

Further, as per the directives of the Customer Service Committee of the Board, all Circle Heads should ensure that while organizing ‘Customer Relations

Programme’ every half year, wherever feasible, they should also invite local/other directors (depending upon their availability).

13.

SENSITIZING OPERATING STAFF ON HANDLING COMPLAINTS

Staff would be properly trained for handling complaints. We are dealing with people and hence difference of opinion and area of disagreement can arise. With an open mind and a smile on the face we shall endeavour to win the customer’s confidence. The Nodal Officer shall ensure that internal machinery for handling complaints/grievances functions smoothly and efficiently at all levels. Further, depending upon the nature of complaints feed-back for training requirement of staff at various levels is given to Learning & Knowledge Management Centre. On Location Training Programmes be organised in the Branch with the help of Central Staff College/ Regional Staff Colleges/ Zonal Training Centres.

14.

COMPLAINTS RELATED TO MISBEHAVIOUR – ZERO TOLERANCE

Under no circumstances, misbehavior of any degree by our staff members shall be tolerated and firm and swift action should be taken to curb this tendency.

In terms of HRDD, HO Guidelines Dy.General Manager/Asst.General Manager posted at Customer Accounte Centre have been designated as Disciplinary Authority for Officer in JMG-I & MMG-II & III & AGM/Chief Manager for Workmen staff respectively in the

cases emanating out of customer complaints relating to Retail Customers/all Education Loan complaints.

15.

NO QUEUE FACILITY FOR SENIOR CITIZENS

All the branches should make special arrangements to provide efficient counter service to the pensioners, who are mostly senior citizens and display on the Notice Board “NO QUEUE FOR SENIOR CITIZENS” so that Senior Citizens need not wait for their turn by standing in the queue.

16.

DISPLAY OF INFORMATION BY BANKS – COMPREHENSIVE NOTICE BOARD/INFORMATION BOOKLET

In compliance of RBI directives towards display of various key aspects i.e. interest rates, service charges, minimum balance requirement, product information, time norms for various banking transactions and Grievance Redressal Mechanism , Bank has designed a uniform Notice Board at HO and the format of Comprehensive Notice Board has already been circulated to all Circle Offices with instructions to ensure display at branches.

(i)

NOTICE BOARD

Circle Office to ensure that :

(a) The Comprehensive Notice Board has been displayed at a prominent place in the branches under their jurisdiction. (b) Display of Board is arranged in such a way that bottom of the Board is at the height of not more than 4 feet from the ground so that no inconvenience is caused to the customers in reading the same. (c) The Comprehensive Notice Board is updated regularly whenever there is a change in respect of the information already displayed on the following points: Date : Branch should indicate the date up to which the board

has been

updated (in the place provided on the right side top corner of the Notice Board). A-7 :

Bank’s BPLR (Benchmark Prime Lending Rate) and date.

B-1&3

Minimum balance requirement for SB and CA a/cs and Charges for non-maintenance of minimum balance. Each branch should mention the minimum balance required (based on the category of branch Rural, Semi-Urban, Urban & Metro for S/B & CA accounts).

C-2

Name & full address, telephone/ Fax no. and e-mail

address of the

Circle Head should be given. C-3

Name, Full address, Telephone number, e-mail address concerned Banking Ombudsman should be given.

Apart from the above if there is any change in any other column, the amendment may immediately be effected. (ii) Information Booklets:

RBI also advised banks to provide details of important information on the Notice Board in the Booklet form. The booklet contains information for guidance to the customers in the form of Replaceable pages to facilitate copy and updation.

(a) The Booklet be kept at the ‘May I Help You ‘counter or with Second man (Hall Incharge) easily accessible to the customers. One copy of the Booklet should remain with the Incumbent Incharge. (b) The language requirements (i.e. bilingual in Hindi speaking states and trilingual in other states) may be taken into account. (c) Copies of the information/ material contained in the booklet be made available to the customers on request.

On receipt of revised instructions/ amendments in any of the document contained in the above booklet, the concerned pages of the booklet be immediately updated/ replaced and requisite changes on the Comprehensive Notice Board also be accountried out at the appropriate place.

17.

CLEANLINESS & UPKEEP OF PREMISES

It is necessary that office premises are well maintained and furniture/ fixtures are kept in proper condition and adequate facilities are provided to make the customer’s waiting time comfortable.

BANKING STRUCTURE The Indian banking industry, which has Reserve Bank of India as its regulatory authority, is a mix of the public sector, private sector, and foreign banks. The private sector banks are again split into old banks and new banks. SCHEDULED BANKS Scheduled commercial banks are those that come under the purview of the Second Schedule of Reserve Bank of India (RBI) Act, 1934. The banks that are included under this schedule are those that satisfy the criteria laid down vide section 42 (60 of the Act). Some cooperative banks come under the category of scheduled commercial banks though not all cooperative banks.

PUBLIC SECTOR BANKS Public sector banks are those in which the Government of India or the RBI is a majority shareholder. These banks include the State Bank of India (SBI) and its subsidiaries, other nationalized banks, and Regional Rural Banks (RRBs). Over 70% of the aggregate branches in India are those of the public sector banks. Some of the leading banks in this segment include Allahabad Bank, Canara Bank, Bank of Maharashtra, Central Bank of India, Indian Overseas Bank, State Bank of India, State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Travancore, Bank of Baroda, Bank of India, Oriental Bank of Commerce, UCO Bank, Union Bank of India, Dena Bank and Corporation Bank.

PRIVATE SECTOR BANKS Private banks are essentially comprised of two types: the old and the new. The old private sector banks comprise those, which were operating before Banking Nationalization Act was passed in 1969. On account of their small size, and regional operations, these banks were not nationalized. These banks face intense rivalry from the new private banks and the foreign banks. The banks that are included in this segment include: Bank of Madura Ltd. (now a part of ALLAHABAD Bank), Bharat Overseas Bank Ltd., Bank of Rajasthan, Karnataka Bank Ltd., Lord Krishna Bank Ltd., The Catholic Syrian Bank Ltd., The Dhanalakshmi Bank Ltd., The Federal Bank Ltd., The Jammu & Kashmir Bank Ltd., The Karur Vysya Bank Ltd., The Lakshmi Vilas Bank Ltd., The Nedungadi Bank Ltd. and Vysya Bank. The new private sector banks were established when the Banking Regulation Act was amended in 1993. Financial institutions promoted several of these banks. After the initial licenses, the RBI has granted no more licenses. These banks are gearing up to face the foreign banks by focusing on service and technology. Currently, these banks are on an expansion spree, spreading into semi-urban areas and satellite towns. The leading banks that are included in this segment include Bank of Punjab Ltd., Centurion Bank Ltd., Global Trust Bank Ltd., HDFC Bank Ltd., ALLAHABAD Banking Corporation Ltd., IDBI Bank Ltd., IndusInd Bank Ltd. and UTI Bank Ltd. FOREIGN BANKS The operations of foreign banks, though similar to that of other commercial Indian banks, are mainly confined to metropolitan areas. Foray of foreign banks depends on reciprocity, economic and political bilateral relations. An inter-departmental committee has been set up to 25

endorse applications for entry and expansion. Foreign banks, in the wake of the liberalization era, are looking to expand and diversify. Some of the leading foreign banks that operate in India are Citibank, Standard Chartered Grindlays Bank, Hong Kong Shanghai Banking Corporation, Bank of America, Deutsche Bank, Development Bank of Singapore and Banque National De Paris. PUBLIC SECTOR BANKING – AT A DISADVANTAGE Functioning of Public Sector Banks (PSBs), which are yet to achieve computerization across the board, is at a relative disadvantage when compared to the private sector, which is offering state-of-the-art facilities such as ATMs, doorstep banking, banking on phone, and net banking. PSBs also suffer from huge costs of labor and low levels of automation. At this rate, it may not be long before new channels devised by private banks effectively surpass the number of branch networks offered by the PSBs. This apart, the problems which have assumed enormous proportion today as far as Public Sector banks are concerned are ballooning NPA levels, declining margins, poor credit off-take, high overheads, and lack of good quality assets. Banks are sticking to reliable borrowers for fear of bad debts. In fact, banks largely invest in government securities, which have zero risk. With GOI being the single largest borrower, the yields on these securities determine the interest rates. The government aims to decrease its shareholding in PSBs to 33%, however, at the same time it also wants to retain the controlling stake. This, it is feared, is not going to solve the problems which PSBs are coping with now.

COMPANY PROFILE History 1895: PNB commenced its operations in Lahore. PNB has the distinction of being the first Indian bank to have been started solely with Indian capital that has survived to the present. (The first entirely Indian bank, the Oudh Commercial Bank, was established in 1881 in Faizabad, but failed in 1958.) PNB's founders included several leaders of the Swadeshi movement such as Dyal Singh Majithia and Lala HarKishen Lal, Lala Lalchand, Shri Kali Prosanna Roy, Shri E.C. Jessawala, Shri Prabhu Dayal, Bakshi Jaishi Ram, and Lala Dholan Dass. Lala Lajpat Rai was actively associated with the management of the Bank in its early years. 1904: PNB established branches in Karachi and Peshawar. 1940: PNB absorbed Bhagwan Dass Bank, a scheduled bank located in Delhi circle. 1947: Partition of India and Pakistan at Independence. PNB lost its premises in Lahore, but continued to operate in Pakistan. 1951: PNB acquired the 39 branches of Bharat Bank (est. 1942), Bharat Bank became Bharat Nidhi Ltd. 1960s: PNB amalgamated Indo Commercial Bank (est. 1933) in a rescue. 1961: PNB acquired Universal Bank of India. 1963: The Government of Burma nationalized PNB's branch in Rangoon (Yangon). September 1965: After the Indo-Pak war the government of Pakistan seized all the offices in Pakistan of Indian banks, including PNB's headoffice, which may have moved to Karachi. PNB also had one or more branches in East Pakistan (Bangladesh). 1969: The Government of India (GOI) nationalized PNB and 13 other major commercial banks, on July 19, 1969. 1976 or 1978: PNB opened a branch in London. 27

1986: PNB acquired Hindustan Commercial Bank (est. 1943) in a rescue. The acquisition added Hindustan's 142 branches to PNB's network. 1993: PNB acquired New Bank of India, which the GOI had nationalized in 1980. 1998: PNB set up a representative office in Almaty, Kazakhstan. 2003: PNB took over Nedungadi Bank, the oldest private sector bank in Kerala. Rao Bahadur T.M. Appu Nedungadi, author of Kundalatha, one of the earliest novels in Malayalam, had established the bank in 1899. It was incorporated in 1913, and in 1965 had acquired selected assets and deposits of the Coimbatore National Bank. At the time of the merger with PNB, Nedungadi Bank's shares had zero value, with the result that its shareholders received no payment for their shares. PNB also opened a representative office in London. 2004: PNB established a branch in Kabul, Afghanistan. PNB also opened a representative office in Shanghai. PNB established an alliance with Everest Bank in Nepal that permits migrants to transfer funds easily between India and Everest Bank's 12 branches in Nepal. 2005: PNB opened a representative office in Dubai. 2007: PNB established PNBIL - Punjab National Bank (International) - in the UK, with two offices, one in London, and one in South Hall, Middlesex. Since then it has opened a third branch in Leicester, and is planning a fourth in Birmingham. 2008: PNB opened a branch in Hong Kong.

With over 38 million satisfied customers and 4668 offices, PNB has continued to retain its leadership position among 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 accountd & debit accountd business; bullion business; life and non-life insurance business; Gold coins & asset management business, etc. Since its humble beginning in 1895 with the distinction of being the first Indian bank to have been started with Indian capital, PNB has achieved significant growth in business which at the end of March 2009 amounted to Rs 3,64,463 crore. Today, with assets of more than Rs 2,46,900 crore, PNB is ranked as the 3rd largest bank in the country (after SBI and ICICI Bank) and has the 2nd largest network of branches (4668 including 238 extension counters and 3 overseas offices).During the FY 2008-09, with 39% share of low cost deposits, the bank achieved a net profit of Rs 3,091 crore, maintaining its number ONE position amongst nationalized banks. Bank has a strong capital base with capital adequacy ratio as per Basel II at 14.03% with Tier I and Tier II capital ratio at 8.98% and 5.05% respectively as on March’09. As on March’09, the Bank has the Gross and Net NPA ratio of only 1.77% and 0.17% respectively. During the FY 2008-09, its’ ratio of priority sector credit to adjusted net bank credit at 41.53% & agriculture credit to adjusted net bank credit at 19.72% was also higher than the respective national goals of 40% & 18%. PNB has 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. Alongwith the achievement of 100% branch

computerization, one of the major achievements of the Bank is covering all the branches of the Bank under Core Banking Solution (CBS), thus covering 100% of it’s business and providing ‘Anytime Anywhere’ banking facility to all customers including customers of more than 2000 rural branches. The bank has also been offering Internet banking services to the customers of CBS branches like booking of tickets, payment of bills of utilities, purchase of airline tickets etc.Towards developing a cost effective alternative channels of delivery, the bank with more than 2150 ATMs has the largest ATM network amongst Nationalised 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 it’s policy of inclusive growth in the Indo-Gangetic belt, the Bank’s mission is “Banking for Unbanked”. The Bank has launched a drive for biometric smart accountd 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 BC/BF will address the outreach issue while technology will provide cost effective and transparent services. The Bank has started several innovative initiatives for marginal groups like rickshaw pullers, vegetable vendors, diary farmers, construction workers, etc. The Bank has already achieved 100% financial inclusion in 21,408 villages. Backed by strong domestic performance, the bank is planning to realize its global aspirations. In order to increase its international presence, the Bank continues its selective foray in international markets with presence in Hongkong, Dubai, Kazakhstan, UK, Shanghai, Singapore, Kabul and Norway. A second branch in Hongkong at Kowloon was opened in the first week of April’09. Bank is also in the process of establishing its presence in China, Bhutan, DIFC Dubai, Canada and Singapore. The bank also has a joint venture with Everest Bank Ltd. (EBL), Nepal. Under the long term vision, Bank proposes to start its operation in Fiji Island, Australia and Indonesia.

Bank continues with its goal to become a household brand with global expertise. Amongst Top 1000 Banks in the World, ‘The Banker’ listed PNB at 250th place. Further, PNB is at the 1166th position among 48 Indian firms making it to a list of the world’s biggest companies compiled by the US magazine ‘Forbes’. Financial Performance: 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, operating and net profit in the year 2008-09. The impressive operational and financial performance has been brought about by Bank’s focus on customer based business with thrust on SME, Agriculture, 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: Parameters Mar'07 Mar'08 Mar'09 CRAR Operating Profit* 3617 4006 5744 26.02

Net Profit* 1540 2049 3091 41.67 Deposit 139860 166457 209760 22.47 Advance 96597 119502 154703 26.55 Total Business 236456 285959 364463 24.15 (Rs.Crores)

BOARD OF DIRECTORS

Smt. Ravneet Kaur

Govt. of India Nominee Director

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

Shri. S.R.Khurana

Director rep. C.A. category

Shri P.K. Nayar

Officer Employee Director

Shri Mohan Lal Bagga

Workmen Employee Director

VISION "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"

MISSION "Banking for the unbanked"

AWARDS & ACHIEVEMENTS OF PUNJAB NATIONAL BANK IN RECENT TIMES "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 by 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

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

Banking Technology Awards 2004 Runner up in 'Best IT Team of the Year Award 2005' Jointly Adjudged by IBA, Finacle & TFCI

Money Outlook Award - 2004 Runner up in 'Best Bank (public Sector) of the year Award' -2005

Niryat Bandhu Gold Trophy for excellence in export perforamnce for 3 consecutive years 2001, 2002 & 2003 by Federation of Indian Exporters Organization (FIEO)

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

3rd Rank amongst Banking Sector in India 323rd Rank in the World The Bankers' Almanac, January 2006

368 amongst Top 1000 Global Banks The Banker, London July 2005 38

Chairman & Managing Director

Sh. K. R. Kamath CMD

Executive Directors

Sh. M.V.Tanksale

Sh. Nagesh Pydah

Executive Director Executive Director Sh. Mohan Vasanth Tanksale has joined as Sh. Nagesh Pydah has joined as Executive Executive Director in Punjab National Bank. Director, in Punjab National Bank. Before Before joining the Punjab National Bank as joining the Bank as Executive Director, He Executive

Director,

Sh.

Tanksale

was was working as General Manager in Bank of

working as General Manager in Union Bank India. of India.

Sh. Nagesh Pydah, a Commerce Graduate, is

Sh. Tanksale is a Science Graduate and is associated with Indian Institute of Bankers having professional qualification - CAIIB and and is a diploma holder in Financial Market AICWA.

and Foreign Exchange from New York 39

He joined Union Bank of India as Asstt. University. Manager on 26.08.1974 in Gwalior.

After completing his short tenure at Bank of

He has 34 years experience in Loan America NT & SA, he joined Bank of India Monitoring,

Planning,

Research

& as Probationary Officer in 1973.

Development, Third Party Products and International Banking etc.

Sh. Pydah has played an important role in Field

and

Administrative

Offices

Before joining the Bank as Executive Corporate Banking, Foreign Exchange, Gold Director, Sh. Tanksale was working as and Diamond Banking, Planning, MIS and General Manger – Transaction Banking in Accountd Products etc. during his 36 years Union Bank of India.

tenure at Bank of India, which includes more than 4 years posting at New York.

Directors

Smt. Ravneet Kaur

Sh. L.M.Fonseca

Sh. Gautam P. Khandelwal

Govt. of India Nominee

Reserve Bank of India

Part-time Non-Official

Director

Nominee Director

Director

Sh. Vinod Kumar Mishra

Sh. Mushtaq A Antulay

Sh. Devinder Kumar Singla

Part-time Non-Official

Share Holder Director

Director

Sh. G R

Sh. Tribhuwan

Sh. Mohinder Paul

Sh. Pradeep Kumar

Sundaravadivel

Nath Chaturvedi

Singh Workmen

Officer Employee

Share Holder

Employees

Director

C.R.M Customer relationship management (CRM) consists of the processes a company uses to track and organize its contacts with its current and prospective customers. CRM software is used to support these processes; information about customers and customer interactions can be entered, stored and accessed by employees in different company departments. Typical CRM goals are to improve services provided to customers, and to use customer contact information for targeted marketing. While the term CRM generally refers to a software-based approach to handling customer relationships, most CRM software vendors stress that a successful CRM effort requires a holistic approach. CRM initiatives often fail because implementation was limited to software installation, without providing the context, support and understanding for employees to learn, and take full advantage of the information systems. CRM tools should be implemented "only after a welldevised strategy and operational plan are put in place". CRM can be implemented without major investments in software, but software is often necessary to explore the full benefits of a CRM strategy. Other problems occur when failing to think of sales as the output of a process that itself needs to be studied and taken into account when planning automation. From the outside, customers interacting with a company perceive the business as a single entity, despite often interacting with a number of employees in different roles and departments. CRM is a combination of policies, processes, and strategies implemented by an organization to unify its customer interactions and provide a means to track customer information. It involves the use of technology in attracting new and profitable customers, while forming tighter bonds with existing ones.

CRM includes many aspects which relate directly to one another: •

Front office operations — Direct interaction with customers, e.g. face to face meetings, phone calls, e-mail, online services etc.

•

Back office operations — Operations that ultimately affect the activities of the front office

(e.g.,

billing,

maintenance,

planning,

marketing,

advertising,

finance,

manufacturing, etc.) •

Business relationships — Interaction with other companies and partners, such as suppliers/vendors and retail outlets/distributors, industry networks (lobbying groups, trade associations). This external network supports front and back office activities.

•

Analysis — Key CRM data can be analyzed in order to plan target-marketing campaigns, conceive business strategies, and judge the success of CRM activities (e.g., market share, number and types of customers, revenue, profitability).

Proponents of CRM software claim that it doesn't only allow more effective ways of managing customer relationships, but also more customer-centric ways of doing business. Executives often cite the need for the proper tools as a barrier to delivering the experience their customers expect. A 2009 study of over 860 corporate executives revealed only 39% believe that their employees have tools and authority to solve customer problems. Types/variations of CRM There are several different approaches to CRM, with different software packages focusing on different aspects. In general, Customer Service, Campaign Management and Sales Force Automation (SFA) form the core of the system (with SFA being the most popular).

Operational CRM Operational CRM provides support to "front office" business processes, e.g. to sales, marketing and service staff. Interactions with customers are generally stored in customers' contact histories, and staff can retrieve customer information as necessary. The contact history provides staff members with immediate access to important information on the customer (products owned, prior support calls etc.), eliminating the need to individually obtain this information directly from the customer. Reaching to the customer at right time at right place is preferable. Operational CRM processes customer data for a variety of purposes: •

Managing campaigns

•

Enterprise Marketing Automation

•

Sales Force Automation

•

Sales Management System

Analytical CRM Analytical CRM analyzes customer data for a variety of purposes: •

Designing and executing targeted marketing campaigns

•

Designing and executing campaigns, e.g. customer acquisition, cross-selling, up-selling, addon-selling

•

Analyzing customer behavior in order to make decisions relating to products and services (e.g. pricing, product development)

•

Management information system (e.g. financial forecasting and customer profitability analysis)

Analytical CRM generally makes heavy use of data mining and other techniques to produce useful results for decision-making. It is at the analytical stage that the importance of fully integrated CRM software becomes most apparent. Logically speaking, the more information that the analytical software has available for analysis, the better its predictions and recommendations will be. Sales Intelligence CRM Sales Intelligence CRM is similar to Analytical CRM, but is intended as a more direct sales tool. Features include alerts sent to sales staff regarding: •

Cross-selling/Up-selling/Switch-selling opportunities

•

Customer drift

•

Sales performance

•

Customer trends

•

Customer margins

•

Customer alignment

Campaign Management Campaign management combines elements of Operational and Analytical CRM. Campaign management functions include: •

Target groups formed from the client base according to selected criteria 45

•

Sending campaign-related material (e.g. on special offers) to selected recipients using various channels (e.g. e-mail, telephone, SMS, post)

•

Tracking, storing, and analyzing campaign statistics, including tracking responses and analyzing trends

Collaborative CRM Collaborative CRM covers aspects of a company's dealings with customers that are handled by various departments within a company, such as sales, technical support and marketing. Staff members from different departments can share information collected when interacting with customers. For example, feedback received by customer support agents can provide other staff members with information on the services and features requested by customers. Collaborative CRM's ultimate goal is to use information collected by all departments to improve the quality of services provided by the company. CRM also plays a role of data distributor within customers, producers and partners. Producers can use CRM information to develop products or find new market. CRM facilitates communication between customers, suppliers and partner by using new information system such email, link and data bank. Consumer Relationship CRM Consumer Relationship System (CRS) covers aspects of a company's dealing with customers handled by the Consumer Affairs and Customer Relations contact centers within a company. Representatives handle in-bound contact from anonymous consumers and customers. Early warnings can be issued regarding product issues (e.g. item recalls) and current consumer sentiment can be tracked (voice of the customer).

Strategy Several CRM software packages are available, and they vary in their approach to CRM. However, as mentioned above, CRM is not just a technology but rather a comprehensive, customer-centric approach to an organization's philosophy of dealing with its customers. This includes policies and processes, front-of-house customer service, employee training, marketing, systems and information management. Hence, it is important that any CRM implementation considerations stretch beyond technology toward the broader organizational requirements. Implementation issues Many CRM project "failures" are also related to data quality and availability. Data cleaning is a major issue. If a company's CRM strategy is to track life-cycle revenues, costs, margins, and interactions between individual customers, this must be reflected in all business processes. Data must be extracted from multiple sources (e.g., departmental/divisional databases such as sales, manufacturing, supply chain, logistics, finance, service etc.), which requires an integrated, comprehensive system in place with well-defined structures and high data quality. Data from other systems can be transferred to CRM systems using appropriate interfaces. Because of the company-wide size and scope of many CRM implementations, significant preplanning is essential for smooth roll-out. This pre-planning involves a technical evaluation of the data available and the technology employed in existing systems. This evaluation is critical to determine the level of effort needed to integrate this data. Equally critical is the human aspect of the implementation. A successful implementation requires an understanding of the expectations and needs of the stakeholders involved. An executive sponsor should also be obtained to provide high-level management representation of the CRM 47

project. An effective tool for identifying technical and human factors before beginning a CRM project is a pre-implementation checklist. A checklist can help ensure any potential problems are identified early in the process. Privacy and data security System One of the primary functions of CRM software is to collect information about customers. When gathering data as part of a CRM solution, a company must consider the desire for customer privacy and data security, as well as the legislative and cultural norms. Some customers prefer assurances that their data will not be shared with third parties without their prior consent and that safeguards are in place to prevent illegal access by third parties.

CRM in bank Campaign Management Banks need to identify customers, tailor products and services to meet their needs and sell these products to them. CRM achieves this through Campaign Management by analyzing data to evaluate customer profitability and designing comprehensive customer profiles in terms of individual lifestyle preferences, income levels and other related criteria. Based on profiles of their customer segments, personalized multichannel marketing campaigns are launched.

It helps in maximizing the lifetime value of those relationships. Success of Campaign depends on capturing following information from top 500 customers of every branch: 1. E-mail id for campaign through email. 2. Mobile number for campaign through SMS. 3. Correct address for campaign through direct mailer. 4. Six digit postal code for territory wise campaign. 5. Date of Birth for campaign to send birthday greetings.

IDENTIFICATION OF PROSPECTIVE CUSTOMER

Before entering into any long term business relationship, the bank will identify the prospective customer (and related parties, where applicable) by obtaining sufficient and reliable information / documents to determine his/her identity, be it individual customers, corporates and other legal entities or special name accounts (For example, an account in the name and style of 'TVS Crossword' or 'Earthquake Relief Fund'). The updation of customer identification data i.e., name, address, occupation, income/turnover, etc., alongwith photograph(s) be done at least once in five years in case of low risk category customers and once in two years in case of high and medium risk category customers.

Following mandatory information shall be obtained based preferably on disclosures by the customer himself / herself:

4.1

Natural Persons

For natural persons (i.e. living individuals who are other than artificial persons), the following information should be obtained, where applicable:

Name alongwith father's / husband's name.

Local and Permanent Residential Address in full (Post Box No. shall not be accepted)

Telephone numbers (landline and mobile), Fax number of Residence and Office,

and E-mail address 4.

Date and place of birth.

Nationality.

Natural identification mark

Sources of income and information about the moveable and immoveable assets.

Occupation, public position held and / or name and address of the office / employer.

Credit facilities availed from PNB / other banks / institutions.

10.

Family members (first kith and kin) and nature of their occupations.

11.

An official personal identification number contained in an unexpired official document (e.g. Passport, Identity Accountd, Driving License, PAN Accountd, Voter's Identity Accountd etc.) which bears a photograph of the customer. OR Identity Accountd issued by Reputed Companies (subject to satisfaction of the Bank). OR Letter from recognized Public Authority or Public Servant verifying the Identity and address of the customer (subject to satisfaction of the Bank).

12.

Type of account i.e. deposit or borrowal.

13.

Signature

For one-off or occasional transaction where the amount of the single transaction does not exceed a specified minimum monetary value, it might be sufficient to require and record only name and address.

Where the current address mentioned by a prospective customer in the account opening form is different from the address mentioned in the document submitted by him / her, the branch should conduct independent verification of address of the said prospective customer by deputing an employee to the address provided by the applicant in the account opening form. The said employee shall submit a certificate, as per the proforma available at Annexure I, with regard to verification of correctness of the address and the said certificate shall be attached with the account opening form. Out of pocket expenses of Rs 50/- will be recovered either in cash from the said prospective customer or debited to his / her account for which a letter of authority (as per proforma available at Annexure II) should be obtained from the customer at the time of opening the account.

4.2

Institutions

The relevant principles of customer identification for natural persons shall be equally applicable to customer identification for all institutions. The term institution includes any entity that is not a natural person.

4.3

Sole-Proprietorship / Partnership Firms

For sole proprietorship / partnership firms, following information shall be obtained:

Name of the firm

ii)

Principal place of business operation

iii)

a. Mailing address

iv)

Contact telephone (land line, mobile) and fax numbers

Copy of partnership deed.

vi)

Official Identification Number (e.g. License issued by concerned department

b. E-mail address

under Shop & Establishment Act, Sales / Income Tax Authorities in the name of the firm) vii)

Nature of business.

viii)

Transaction profile e.g. how much transactions (amount wise) are likely to be there in a given month / quarter / half year / year

ix)

Details of credit facilities being availed from our bank/other banks/institutions

Names and addresses of major suppliers and customers

xi)

Details of branch offices, associates and nature of their business.

xii)

Details and nature of foreign collaboration, if any.

Further, each partner of a partnership firm shall also be identified individually. The reasonable steps should also be taken to verify the identity and reputation of any agent/ representative / attorney who opens an account on behalf of a firm.

4.4

Corporates

In addition to the information required to be obtained from partnership firms as at above, the following additional information should also be obtained in case of corporates.

Certified copy of the Certificate of Incorporation and Memorandum and Articles of Association

ii)

Certified copy of Certificate of Commencement of Business.

iii)

Resolution of the Board of Directors authorizing opening of account and naming the persons authorized to operate it.

iv)

Identification of those who have authority to operate the account;

Where a company is effectively controlled by another company, an individual, small group of individuals or a trust etc, the controller entity should also be subjected to necessary KYC norms to the satisfaction of bank before accepting the applicant company

as the customer of the bank.

In case of private limited companies, the Directors of the Company shall also be identified individually as in case of a partnership firm.

4.5

Corporations A corporation is a body corporate having come into existence through a specified Act / Notification of the State / Central Govt. While opening an account of a corporation, the following additional information should be obtained in addition to that required in case of a partnership firm:

Copy of the notification of Act by virtue of which the corporation has come into existence

ii)

Memorandum and Articles of incorporation / relevant Rules / Regulations / Schemes, if any

iii)

Resolution of the governing body authorizing to corporation to open an account with the bank and naming the persons authorized to operate it.

iv)

Identification of those who have authority to operate the account

Project Title: Study of the Customer Relationship Management for Punjab National Bank. Objective of project: Primary objective:  To study the customer awareness & employee satisfaction about Punjab National Bank.  To enhance the business of Punjab national bank. Secondary objectives  To analyze the customer behavior.  To find out the satisfaction level of the customers & employee.  To study the effect of event and promotion.  To make various suggestion on the improvement of the customer relationship.

RESEARCH METHODOLOGY Research methodology is away to systematically solve research problem. In it we study the various step that are generally adopted by researcher in studying his research problem along with logic behind them. It is necessary for a researcher to know not only the research method/techniques but also the methodology. It may be noted, in the context of planning & development that the significance of research lines in its quality and not in quantity. Researcher should know how to apply particular research techniques, but they also need to know which of these methods or techniques, are relevant and which are not, and what would they mean and indicate and why? Meaning of Research “Research is common parlance refers to a search for knowledge. In fact research is an act of scientific investigation.” The project was divided in to the following steps. To decide objective of the study

To decide research design & application

To decide source of data collection

To decide from of data collection

To organize & collect data 57

To process & analyze report

To prepare the research report 1.To decide objective of the Study:This step is also research problem. problem definition is the most critical part of the research process. research problem definition involves specifying the information needed by management. The main objective of the study are:  To study the awareness of Punjab national bank.  To find out the level of customer satisfaction with the offers, services offered by Punjab National Bank. 2. To decide research design & application:Research design involves defining the research problem, determining how to collect the data and from whom, establishing the way the data will be analyzed estimating costs and the preparation of the research approach. For this study, descriptive research was selected. 3. To decide Source of data there are two source of data  Primary Data  Secondary Data Primary data:Primary data is the original data collected specifically for the problem.

Reason for selecting primary data:In terms of primary data a questionnaire has been used to interview desire sample units that give accurate and up to data information as well better to research problem. Research approaches: - Primary data can be collected in five main ways: through Observation, focus groups, surveys, behavioral data, and experiments. Research instruments:- Marketing researchers have a choice of three main research Instruments in collecting primary data:  Questionnaires: - A questionnaire consists of questions presented to respondents for their answers. Because of its flexibility, the questionnaire is by far the most common Instrument used to collect primary data. Questions can be open-ended or closed-Ended.  Qualitative measures: - Some marketers prefer more qualitative methods for gauging consumer opinion because consumer actions do not always match their answers to survey questions. Qualitative research techniques are relatively unstructured measurement approaches that permit a range of possible responses, and they are a creative means of ascertaining consumer perceptions that may other-Wise be difficult to uncover.  Mechanical devices: -Mechanical devices are occasionally used in marketing research .Mechanical devices like galvanometers measure the respondent’s interest or emotions aroused by exposure to a specific ad or picture. Secondary data:Data potentially useful in solving a current problem but that were collected for a different purpose. Reason for selecting secondary data:59

Secondary data can be gathered quickly and inexpensively, compared to primary data, it is clear useful to study analyzing the recent development in the telecom industry. Contact methods:- Once the sampling plan has been determined, the marketing researcher must decide how the subject should be contact:  Mail questionnaire: - The mail questionnaire is the best way to reach people who would not give personal interviews or whose responses might be biased or distorted by the interviewers. Mail questionnaires require simple and clearly worded questions.  Telephone interview: - Telephone interviewing is the best method for gathering information quickly; the interviewer is also able to clarify questions if respondents do not understand them. The response rate is typically higher than in the case of mailed questionnaires.  Personal interview: - Personal interviewing is the most versatile method. The interviewer can ask more questions and record additional observations about the respondent, such as dress and body language. Personal interviewing takes two forms. In arranged interviews, respondents are contacted for an appointment, and often a small payment or incentive is offered. Intercept interviews involve stopping people at a shopping mall or busy street corner and requesting an interview.  Online interviews: - There is increased use of online methods. There are so many ways to use the Net to do research. In this method, researcher can include a questionnaire on its Web site and offer a people to answer the questionnaire. 4.To decide from of data collection:-

For this project survey method was selected which was accountried through person interview. Because information from different customers was required. 5. To organize & collect data:Once the researcher has formulated and development a research design including questionnaire second thing he has to decide whether he has to collect the information. From all the targeted customers. There can be two types of survey are possible.  Sample Survey  Census Survey “For this project sample Survey war chosen” Characteristics of the sample survey are: It is cheaper than census survey  It requires less time  It is economical  More detail information can be collected Deciding the sample plan requires following decisions Sample unit “Who is to be surveyed” Sample Sample is the true representation of the population by studying of the sample we can predict the behavior of the population. Sample Size: 10 Employee & 50 Customer Method of Sampling:-

In this project, the survey was done within the market that means probabilistic convenience Sampling was accountried out. 6. To process & analyze data:After the data was collected it was tabulated, analyzed and interpreted to the conclusion reach. Techniques Applied  Bar Chart:- A chart in which the length of the bar represents the amount of the item associated with the bar.  Pie Chart:- A circle divided in to sections, such that each section represent the percentage of the total area of a circle associates with one variable. Types of Research Along with this there may be 3 type of research methodology these are :They are –  Exploratory Research  Descriptive Research  Casual Research

“Our research is based on the exploratory research.” Exploratory Research “The objective of this research is to gather preliminary information that will help us to define the problem and to suggest any hypothesis.” Which means first we have to define the problem and research objective? Then we have to develop the research plan for collecting information. Now after collection data we have to interpret those data for any suggestion,

LIMITATION  It was assumed that the information given by the respondents is authentic and best of their knowledge.  Some of the view given was completely views by customers as they were in a hurry and were not considered in the data analysis.  The result of the study is applicable to the survey area only.  Time is also one of the important limitations.  Dull process and unwilling respondent also affect the result of the study.

DATA ANALYSIS OF EMPLOYEE

1. Time being you joint PNB 0-5

[

]

25 & Above

[

5-10

[

]

15-25 [

]

10%

20%

10%

20% 40%

0 to 5

5 to 10

10 to 15 `

15 to 25

25 & above

Interpretations: In the survey I find that more than employee 40% have time to joint in PNB 5 to 10 years.

2: How long you have been on the present seat?

1-2

[

]

10 & above

2-5

[

]

5- 10 [

]

20%

30% 10% 0 to 5

1 to 2

2 to 5

5 to 10

10 & above

Interpretations: In the survey I find that more than employee 30% have time to joint in PNB 2 to 5 years.

3: Your present health status? Satisfying

[

]

Not Satisfying

[

20%

80%

Satisfying

Not satisfying

Interpretations: In the survey I find that more than 80% says satisfying.

]

4: Do you feel satisfied with the working conditions within the branch? Yes

[

]

[

]

To some extent

10% 20%

70%

Yes

To some extent

Interpretations: In the survey I find that more than 70% says yes.

[

]

5: Do you like interacting with customer? Yes

[

]

[

]

20%

80%

Yes

Interpretations: In the survey I find that more than 80% says yes.

6: Do you feel CBS system has affected your work efficiency? Positively

[

]

Negatively

[

]

No Affect

10% 20%

70%

Positively

Negatively

Interpretations: In the survey I find that more than 70% says positively.

No Affect

[

]

7: Do CRM helps in maintaining long term relation with the customer? Yes

[

]

[

]

Sometimes

[

10%

30%

60%

Yes

Sometimes

Interpretations: In the survey I find that more than 60% says Yes.

]

8: Do you feel stressed due to customized banking activates? Give reason? Agree [

]

Disagree

[

]

30%

70%

Agree

Disagree

Interpretations: In the survey I find that more than 70% are agree.

9: Are you satisfied with your family life vis – a vis your job with the bank? Yes

[

]

[

]

Sometimes

20%

80%

Yes

Sometimes

Interpretations: In the survey I find that more than 80% says satisfying.

[

]

10: Do you feel that you can perform better if made to work on a different seat? Yes

[

]

[

]

40%

60%

Yes

Interpretations: In the survey I find that more than 60% says satisfying.

DATA ANALYSIS OF CUSTOMER Q-1: Type of account holder Fixed Deposit A/c

[

]

Saving fund A/c

[

]

Pension A/c

[

]

Current A/c

[

]

Loan A/c

[

]

Recurring deposit

[

]

Other ………………………………………………………………………

10%

20%

10%

Fixed deposit Loan

20%

10%

20% Saving fund Recurring

Pension Other

Current

Interpretations: In the survey I find that more than 20% customer says saving, current, recuring.

Q-2: Kind of services most frequently availed by you from the bank? Demand Draft

[

]

ODBC

[

]

IDBC

[

]

Foreign exchange

[

]

RTGS

[

]

NEFT

[

]

Loan

[

]

Other ………………………………………………………………………

10%

20%

10%

10% 20%

Demand Foreign exchange Loan

10% ODBC RTGS Other

10%

IDBC NEFT

Interpretations: In the survey I find that more than 20% customer says Demand and RTGS.

Q-3: Are you satisfied with the services? Yes

[

]

[

]

40%

60%

Yes

Interpretations: In the survey I find that more 60% customer are satisfied with the services.

Q-4: Do you find any problem while availing services? Yes

[

]

[

]

Sometimes

[

]

10% 30%

60%

Yes

Sometimes

Interpretations: In the survey I find that more 60% customer says no he not find any problem.

Q-5: Do you have to visit the bank many number of times to get your problems solved? Yes

[

]

[

]

Sometimes

[

]

10%

50%

40%

Yes

Sometimes

Interpretations: In the survey I find that more 50% customer says yes.

Q-7: Would you like your other family member to open an A/c in this branch? Yes

[

]

[

]

10%

90% Yes

Interpretations: In the survey I find that more 90% customer says yes.

Q-8: How will you rate the behaviour of staff members of the bank? Corpteous

[

]

Indifferent

[

]

Aggressive

20%

30%

50% Corteous

Indifferent

Aggressive

Interpretations: In the survey I find that more 50% customer says indifferent.

[

]

Q-9: How will you classify the environment within the environment? Cordial

[

]

Stressful

[

]

40%

60%

Cordial

Stressful

FINDINGS •

More than employee 40% have time to joint in PNB 5 to 10 years.

•

More than employee 30% have time to joint in PNB 2 to 5 years.

•

More than 80% says satisfying.

•

More than 70% says yes.

•

More than 80% says yes.

•

More than 70% says positively.

•

More than 60% says Yes.

•

More than 70% are agree.

•

More than 80% says satisfying.

•

More than 60% says satisfying.

•

More than 20% customer says saving, current, recuring.

•

More than 20% customer says Demand and RTGS.

•

More 60% customer are satisfied with the services.

•

More 60% customer says no he not find any problem.

•

More 50% customer says yes.

•

More 90% customer says yes.

•

More 50% customer says indifferent.

CONCLUSION OF THE STUDY The research work was successfully identifying by the studying the relationship management of Punjab National Bank in Meerut. The conclusion can be drawn from this study may be: Punjab National Bank is India’s one of the leading Banking manufactures and also the leader of the market both in terms of volume and revenue generated.  Taking the sale trend in to account PNB sold a record number 14,842 in. In 2007-08 it record a turnover of INR 145,922 million which rose to 178,603 million in 2007-08 showing a growth of 20%.  Hence Punjab National Bank Limited has captured over all share of 46% in the banking sector.

Recommendation To conclude, it can be said that Punjab National Bank has created its image in a very short period in Meerut. It is attracting the customers with its good services. Most of the customer satisfied by opening the Punjab National Bank account. This satisfaction can be concluded by the response of customer in the questionnaires. Day by day Punjab National Bank is improving his reputation to other Banking Company. The comparison chart and survey report in this training report can recognize this. There should be more staff having experience of Banking sector.  There should be more efficient planning for satisfying customer needs.  Attractive offers should be given time to time, to increase customer’s interests  There should be easy process of account servicing.

QUESTIONNAIRE FOR EMPLOYEE Name Designation Age group

Q-1: Time being you joint PNB 30-40 [

]

45-60 [

]

60 & above

[

]

5- 10 [

]

Q-2: Date of placement in this branch?

Q-3: How long you have been on the present seat?

1-2

[

10 & above

] [

2-5

[

]

Q-4: Your present health status? Satisfying

[

]

Not Satisfying

Q-5: Your present job includes activates: i.

………………………..

ii.

………………………..

iii.

………………………..

iv.

………………………..

[

]

………………………..

Q-6: Are you comfortable with work on seat? •

•

Cash

•

Teller

•

Clarity

•

Credit

•

Others

Q-7: Do you feel satisfied with the working conditions within the branch? Yes

[

]

[

]

To some extent

[

]

Q-8: Do you like interacting with customer? Yes

[

]

[

]

Q-9: Do you feel CBS system has affected your work efficiency? Positively

[

]

Negatively

[

]

No Affect

Q-10: Do CRM helps in maintaining long term relation with the customer? Yes

[

]

[

]

Sometimes

[

]

[

]

Q-11: Do CRM has helped in reducing manual work & How? ___________________________________________________________________ ___________________________________________________________________

Q-12: Do you feel stressed due to customized banking activates? Give reason? Agree [

]

Disagree

[

]

Q-13: Are you satisfied with your family life vis – a vis your job with the bank? Yes

[

]

[

]

Sometimes

[

]

Q-14: Do you feel that you can perform better if made to work on a different seat? Yes

[

]

[

]

QUESTIONNAIRE FOR CUSTOMER Name Designation Age group

Q-1: Type of account holder Fixed Deposit A/c

[

]

Saving fund A/c

[

]

Pension A/c

[

]

Current A/c

[

]

Loan A/c

[

]

Recurring deposit

[

]

Other ………………………………………………………………………

Q-2: Kind of services most frequently availed by you from the bank? Demand Draft

[

]

ODBC

[

]

IDBC

[

]

Foreign exchange

[

]

RTGS

[

]

NEFT

[

]

Loan

[

]

Other ………………………………………………………………………

Q-3: Are you satisfied with the services? Yes

[

]

[

]

Q-4: Do you find any problem while availing services? Yes

[

]

[

]

Sometimes

[

]

Q-5: Do you have to visit the bank many number of times to get your problems solved? Yes

[

]

[

]

Sometimes

[

]

Q-6: Whether you satisfied with the technological advancement in the bank? If yes, How?........................................................................................ ……………………………………………………………………….. If Not, Why?............................................................................................. …………………………………………………………………………

Do personalized relations with staff members provides you benefit? How …………………………………………………………………………………………. ………………………………………………………………………………………….

Q-7: Would you like your other family member to open an A/c in this branch? Yes

[

]

[

]

Q-8: How will you rate the behaviour of staff members of the bank? Corpteous

[

]

Indifferent

[

]

Aggressive

Q-9: How will you classify the environment within the environment? Cordial

[

]

Stressful

[

]

[

]

BIBLIOGRAPHY Name Of Book

Name Of Author

Edition & year

Marketing Management

Paramhans Foundation

Research Methodology

C.R.Kothari

Second Edition, 1993

Marketing Management

Philip Kotler

Tenth Edition, 1999

Fundamentals of Statistics

D.N.Elhance

Present Edition, 1992

REFRENCES 1. Website of www. Punjab National Banksuzuki.com

2. Website of www.google.com

First Edition, 1992