A PROJECT REPORT
ON
Organizations ProfileName of organization :Punjab National
Bank
Head Office
: Bhikaji Cama Place, New Delhi
Origin of the Organization
Established in 1895 at Lahore, undivided India, Punjab National
Bank (PNB) has the distinction of being the first Indian bank to
have been started solely with Indian capital.The bank was
nationalised in July 1969 along with 13 other banks. From its
modest beginning, the bank has grown in size and stature to become
a front-line banking institution in India at present. A
professionally managed bank with a successful track record of over
110 years.
Largest branch network in India - 4525 Offices including 432
Extension Counters spread throughout the country.
Strategic business area covers the large Indo-Gangetic belt and
the metropolitan centres.
Ranked as 248th biggest bank in the world by Bankers Almanac ,
London.
Strong correspondent banking relationships with more than 217
international banks of the world.
More than 50 renowned international banks maintain their Rupee
Accounts with PNB.
Well equipped dealing rooms; 20 different foreign currency
accounts are maintained at major centres all over the globe.
Rupee drawing arrangements with M/s UAE Exchange Centre, UAE,
M/s Al Fardan Exchange Co. Doha, Qatar,M/s Bahrain Exchange Co,
Kuwait, M/s Bahrain Finance Co, Bahrain,M/s Thomas Cook Al
Rostamani Exchange Co. Dubai,UAE, and M/s Musandam Exchange, Ruwi,
Sultanate of Oman.
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"
Origin
Punjab under the British especially after annexation in 1849
witnessed a period of rapid development giving rise to a new
educated class fired with a desire for freedom from the yoke of
slavery. Amongst the cherished desires of this new class was also
an overriding ambition to start a Swadeshi Bank with Indian Capital
and management representing all sections of the Indian community.
The idea was first mooted by Rai Mool Raj of Arya Samaj who, as
reported by Lala Lajpat Rai, had long cherished the idea that
Indians should have a national bank of their own. He felt keenly
"the fact that the Indian capital was being used to run English
banks and companies, the profits accruing from which went entirely
to the Britishers whilst Indians had to contend themselves with a
small interest on their own capital".
At the instance of Rai Mool Raj, Lala Lajpat Rai sent round a
circular to selected friends insisting on an Indian Joint Stock
Bank as the first special step in constructive Swadeshi. Lala
Harkrishan Lal who had returned from England with ideas regarding
commerce and industry, was eager to give them practical shape.
'PNB was born on May 19, 1894. The founding board was drawn from
different parts of India professing different faiths and a varied
back-ground with, however, the common objective of providing
country with a truly national bank which would further the economic
interest of the country.
The Bank opened for business on 12 April, 1895. The first Board
of 7 Directors comprised of Sardar Dayal Singh Majithia, who was
also the founder of Dayal Singh College and the Tribune; Lala
Lalchand one of the founders of DAV College and President of its
Management Society; Kali Prosanna Roy, eminent Bengali pleader who
was also the Chairman of the Reception committee of the Indian
National Congress at its Lahore session in 1900; Lala Harkishan Lal
who became widely known as the first industrialist of Punjab; EC
Jessawala, a well known Parsi merchant and partner of Jamshedji
& Co. of Lahore; Lala Prabhu Dayal, a leading Rais, merchant
and philanthropist of Multan; Bakshi Jaishi Ram, an eminent Civil
Lawyer of Lahore; and Lala Dholan Dass, a great banker, merchant
and Rais of Amritsar. Thus a Bengali, Parsi, a Sikh and a few
Hindus joined hands in a purely national and cosmopolitan spirit to
found this Bank which opened its doors to the public on 12th of
April 1895. They went about it with a Missionary Zeal. Sh. Dayal
Singh Majithia was the first Chairman, Lala Harkishan Lal, the
first secretary to the Board and Shri Bulaki Ram Shastri Barrister
at Lahore, was appointed Manager.
A Maiden Dividend of 4% was declared after only 7 months of
operation. Lala Lajpat Rai was the first to open an account with
the bank which was housed in the building opposite the Arya Samaj
Mandir in Anarkali in Lahore. His younger brother joined the Bank
as a Manager. Authorised total capital of the Bank was Rs. 2 lakhs,
the working capital was Rs. 20000. It had total staff strength of
nine and the total monthly salary amounted to Rs. 320.
The first branch outside Lahore was opened in Rawalpindi in
1900. The Bank made slow, but steady progress in the first decade
of its existence. Lala Lajpat Rai joined the Board of Directors
soon after. in 1913, the banking industry in India was hit by a
severe crisis following the failure of the Peoples Bank of India
founded by Lala Harkishan Lal. As many as 78 banks failed during
this crisis. Punjab National Bank survived. Mr. JH Maynard, the
then Financial Commissioner, Punjab, remarked...."Your Bank
survived...no doubt due to good management". It spoke volumes for
the measure of confidence reposed by the public in the Bank's
management.
The years 1926 to 1936 were turbulent and loss ridden ones for
the banking industry the world over. The 1929 Wall Street crash
plunged the world into a severe economic crisis.
It was during this period that the Jalianwala Bagh Committee
account was opened in the Bank, which in the decade that followed,
was operated by Mahatma Gandhi and Pandit Jawaharlal Nehru. The
five years from 1941 to 1946 were ones of unprecedented growth.
From a modest base of 71, the number of branches increased to 278.
Deposits grew from Rs. 10 crores to Rs. 62 crores. On March 31,
1947, the Bank officials decided to leave Lahore and transfer the
registered office of the Bank to Delhi and permission for transfer
was obtained from the Lahore High Court on June 20, 1947.
PNB was then housed in the precincts of Sreeniwas in the
salubrious Civil Lines, Delhi. Many a staff member fell victim to
the widespread riots in the discharge of their duties. The
conditions deteriorated further. The Bank was forced to close 92
offices in West Pakistan constituting 33 percent of the total
number and having 40% of the total deposits. The Bank, however,
continued to maintain a few caretaker branches.
The Bank then embarked on its task of rehabilitating the
displaced account holders. The migrants from Pakistan were repaid
their deposits based upon whatever evidence they could produce.
Such gestures cemented their trusts in the bank and PNB became a
symbol of Trust and a name you can bank upon. Surplus staff posed a
big problem. Fast expansion became a priority. The policy paid rich
dividends by opening up an era of phenomenal growth.
In 1951, the Bank took over the assets and liabilities of Bharat
Bank Ltd. and became the second largest bank in the private sector.
In 1962, it amalgamated the Indo-Commercial Bank with it. From its
dwindled deposits of Rs. 43 crores in 1949 it rose to cross the Rs.
355 crores mark by the July 1969. Its number of offices had
increased to 569 and advances from Rs. 19 crores in 1949 to Rs. 243
crores by July 1969 when it was nationalised.
Since inception in 1895, PNB has always been a "People's bank"
serving millions of people throughout the country and also had the
proud distinction of serving great national leaders like Sarvshri
Jawahar Lal Nehru, Gobind Ballabh Pant, Lal Bahadur Shastri, Rafi
Ahmed Kidwai, Smt. Indira Gandhi etc. amongst other who banked with
us.
Punjab Keshari Lala Lajpat Rai (Saluting the spirit of our
founding father)
(1865-1928)
The Life and Times of Lala Lajpat Rai
There are few leaders of the pre-independence era who, after
having plunged themselves into the political struggle, continued to
take an active interest in social, cultural and educational work.
Lala Lajpat Rai was one of such leaders. Born on 28th January, 1865
at a small village, Dhudike in the Ferozepur district of Punjab, he
belonged to the Agarwal Baniya caste and it was perhaps because of
this, in addition to taking part in social and political life of
the country, he took keen interest in industrial and financial
matter also. His father was a teacher of Persian and Urdu in a
government school.
Having passed the final examination in Law from Punjab
University, he started his practice in1883, when he was barely 18
years old. Endowed with a rich legacy of moral and intellectual
background, Lala Lajpat Rai had benefit of education in the
practical rationalism of western science combined with the
religious purity and moral elevation of Eastern literature that put
on him the hallmark of true culture. While sympathizing with and
aiding every movement made for progress, Lala Lajpat Rai identified
himself very closely with Arya Samaj, in which he found ample scope
for the exercise of his patriotism, philanthropy and religious
zeal.
Having qualified as a pleader, Lala Lajpat Rai started practice
at Hissar and soon became a leading lawyer of the district. He
organized the Arya Samaj there and put it on proper lines. In 1892,
he transferred his practice to the wider field at Lahore.Education,
both secular and religious, was in Lala Lajpat Rais view an
important factor in national development. He took part in the
foundation of the D.A.V. College at Lahore.
Lalaji and Politics
Lala Lajpat Rai always felt drawn towards politics. It was in
1888 that he joined the Indian National Congress when it met at
Allahabad under the presidency of Mr. G. Yule. In 1905, the Indian
National Congress Committee having recognized in him an austere,
sincere and selfless devoted worker selected him as one of its
delegates to place before the British, the political grievances of
the Indian people. He met the expenses of his trip from his own
pocket. He along with Gokhale carried on the political campaign in
various parts of England and brought home to the mind of the
British, the evils of an unsympathetic and bureaucratic government
under which India was labouring and pleaded in eloquent language,
adding facts and figures in supporting their contention, cause of
the half starving and half dying people of India. Lala Lajpat Rai
created an impression on the English Populace.
After his return from England, he was busy devising and
organizing ways and means for political advancement and industrial
emancipation of the country.
The movement of Swadeshi was in the offing and he put his heart
and soul into it. He preached the message of Swadeshi to the people
of Punjab and made it very popular. This naturally enraged the
bureaucracy and he came to be regarded as a revolutionary by the
Britishers and the Anglo-Indian press. He was openly dubbed as a
Revolutionary and an instigator of the armed forces.
The Jalianwala Bagh tragedy and the Government's denial to
censure the conduct of its officers made him a complete non
cooperator. He lost his faith in the British and threw himself
whole heartedly into the non-cooperation movement.In 1925, he
joined the Swaraj Party and became its deputy leader. He took
active part in the deliberations of the debates of the Assembly. It
was he, who moved the resolution for the Boycott of the Simon
Commission in the Assembly. It was while leading the boycott
procession at Lahore on the 30th October, 1928 that he received
lathi blows on his chest which ultimately brought about his death
on the 17th November, 1928.
Lala Lajpat Rai and PNB
Lalaji was keenly concerned with the fact that though Indian
capital was being used to run English Banks and companies, the
profits went entirely to the British, while Indians had to contend
themselves with a small interest on their capital. He echoed this
sentiment in one of his writing while concurring with Rai Mul Raj
of Arya Samaj who had long cherished the idea that Indians should
have a National Bank of their own. At the instance of Rai Mul Raj,
Lala Lajpat Rai sent a circular to selected friends insisting on an
Indian joint stock Bank as the first step in constructive Swadeshi
and the response was satisfactory
After filing and registering the memorandum and Articles of
Association on 19 May, 1894, the bank was incorporated under Act VI
of the 1882 Indian Companies Act. The prospectus of the bank was
published in the Tribune, and the Urdu Akhbar-e-Am and Paisa
Akhbar. On 23rd May, 1894, the founders met at the Lahore residence
of Sh. Dyal Singh Majithia, the first Chairman of PNB, and resolved
to go ahead with the scheme. They decided to hire a house in the
famous Anarkali Bazar of Lahore opposite the post office and near
well known stores of Rama Brothers.On 12th April 1895, the Bank
opened for business, a day before the great Punjab festival of
Baishakhi. The essence of the Banks culture was clear at this first
meeting itself. The fourteen original shareholders and seven
directors took only a modest number of shares; the control of the
Bank was to lie with the large, dispersed shareholders, a purely
professional approach that was as uncommon then as it is today.
Heritage : Saga of Excellence in Banking
Fired by the spirit of nationalism and founded on the idea that
Indians should have a national bank of their own, Punjab National
Bank Ltd was the result of the efforts of far-sighted visionaries
and patriots, among whom were persons like Lala Lajpat Rai, Mr. E C
Jessawala, Babu Kali Prasono Roy, Lala Harkishan Lal and Sardar
Dyal Singh Majithia. Incorporated under the Act VI of 1882, Indian
Companies Act, the Bank commenced operations on April 12, 1895 from
Lahore, with an authorised total capital of Rs 2 lac and working
capital of Rs 20,000. Prophetically, the Bank chose "Stability" as
its telegraphic address, as the future course of events were to
prove - the Bank withstood various financial crises including the
trauma in the form of partition of India when the Bank had to close
92 offices (33%) in west Pakistan which constituted 40% of its
deposits and 15 of its staff fell victims to the frenzy. The
registered office was shifted to Delhi and the Bank honoured all
the deposit claims of the refugees even on the basis of whatever
little evidence they could produce. Subsequently, the Bank
registered impressive performance and grew from strength to
strength.
A pioneer throughout, the Bank distinguished itself by
appointing auditors in 1895 long before it was mandatory;
introduced the "teller" system in 1944 (another first );
established profit sharing bonus, provident fund and voluntary
outside audit well before they formed keystones of good
management.
Nationalisation came in 1969 which unleashed a new chapter in
the long history of the Bank. Keeping with the economic ideology of
catalyzing development and amelioration of poverty by funding
various self-employment schemes, PNB expanded its presence rapidly
in unbanked areas. The Bank donned the role of a facilitator in
providing the vital input of credit and consistently exceeded the
national goals in respect of priority sector lending. With its
large presence throughout the country and with a view to
strengthening the rural credit delivery system, the Bank sponsored
Regional Rural Banks (RRBs).
PNB has established itself firmly as one of the premier banking
institutions in the country with a long tradition of sound and
prudent banking. The bank's growth has been aided by
take-over/merger of 7 private sector banks during different periods
in its history. The first ever and the only merger of a
nationalized bank with PNB was in 1993, viz., New Bank of
India.
By late 1980s when the first whiff of liberalization came about,
the Bank initiated strategic moves towards diversification; and in
2002, 20% of government ownership was disinvested through a very
successful IPO to the public. In 2003, the erstwhile Nedungadi Bank
Ltd (e-NBL), a Kerala based private bank was amalgamated with
Punjab National Bank. This was the seventh merger in PNBs history
of more than 115 years. PNBs management team has been quite
successful in managing the mergers and ensuring the integration
process in a smooth and effective manner. It may be added that no
other bank in the nationalized bank group has a track-record of so
many mergers. This has improved the franchise value of the Bank,
particularly, in the relatively underrepresented Kerala region. In
order to meet future capital requirements on account of
implementation of Basel II norms, in March 2005, the Bank came out
with Follow-on Public Offer (FPO) through the book building
process, reducing the shareholding of Govt of India to 57.8%.
Punjab National Bank with more than5400 domestic offices
includingExtension Counters has the largest network amongst the
nationalized banks i.e. next only to SBI. The bank has a strong
franchise value and provides a host of financial products and
services, both to the retail customer and corporate business. It
has continued to fulfill its social responsibilities and made
significant progress in adoption of technology, keeping with its
objective of transforming itself into a techno-savvy Bank.
During 2008-09, the Bank achieved the landmark of becoming the
largest Nationalized Bank to bring ALL BRANCHES/EXTENSION COUNTERS
into Core Banking Solution (CBS). The strong franchise enjoyed by
the Bank, combined with its technological capabilities provides the
Bank competitive advantages.
The Bank also continues to discharge its social obligations and
addresses environmental concerns with added vigour, which include
free medical camps, distribute artificial limbs, tree plantation
and blood donation camps, besides donations to Hospitals, Schools
etc. The Bank supports various societies, charitable institutions
and NGO /organisations working for the benefit of downtrodden,
weaker sections of society, orphans, underprivileged, spastics,
handicapped, mentally retarded children, women in shelter homes,
etc. The Bank also contributes for fighting diseases like diabetes,
tuberculosis, AIDS, leprosy etc. Donations are also extended for
purchase of water coolers, ambulances and building infrastructure
facilities at hospitals/schools.
Subsidiaries:A. Domestic:
Sr No.Name of the EntityCountry of IncorporationProportion of
ownership %
i)PNB Gilts Ltd.India 74.07
ii)PNB Housing Finance Ltd.India51.01
iii)PNB Investment Services Ltd.India100
iv)PNB Insurance Broking Pvt. Ltd.#India81
# PNB Insurance Broking Company is non-functional. The Broking
licence has been surrendered and steps are being initiated for
winding-up of the Company.
Domestic Subsidiaries1. PNB GILTS LTD.PNB Gilts Ltd., a
subsidiary of the Bank, is engaged in the business of trading in
Govt. securities, treasury bills and Non SLR Investments. It is
also engaged in dealing in Money Market Instruments
(Call/Notice/Term Money, Repo /Reverse Repo, Inter-corporate
Deposits, Commercial Paper, Certificate of Deposit) and Mutual
Funds Distribution. The company is listed at NSE and BSE.
2. PNB HOUSING FINANCE LTDPNB Housing Finance Ltd. is engaged in
providing housing loans for purchase, construction and up gradation
of a dwelling unit. The company offers Loans for construction or
for purchase of house/flat from development authorities and also
from private builders/ group housing societies as well as for
renovation/ repairs. Company also provides finance for construction
of residential projects. Loans to NRIs are also provided for
purchase/ construction of house/ flat along with a resident/
non-resident co-borrower.
3. PNB INVESTMENT SERVICES LTDPNB Investment Services Ltd, a
wholly owned subsidiary, has been set up by the Bank for carrying
out Merchant Banking Business. It provides services for Project
Appraisal, Loan Syndication, Debt Placement and to executes
IPOs/FPO/QIPs. PNBISL is registered with SEBI as a Category- I
Merchant Banker.
4. PNB INSURANCE BROKING Pvt. Ltd.The Bank is holding majority
stake in abovecompany, jointly with Vijaya Bank, minor
shareholder.
Domestic Joint VenturesThe Bank has the following Joint
Ventures:1. Principal PNB Asset Management Company Pvt. Ltd2.
Principal Trustee Company Pvt. Ltd
B. International: Sr. No Name of the EntityCountry of
incorporation Proportion of ownership
1 Punjab National Bank (International) Ltd. United Kingdom
100%
2 Druk PNB Bank Ltd Bhutan 51%
3 JSC SB PNB Kazakhstan Kazakhstan 84.375%
Associates: (Bank having 20% or more stake)A. Domestic:Sr.
No.Name of Regional Rural Banks / Other Associates Proportion of
ownership
1Madhya Bihar Gramin Bank, Patna35%
2 Sarva Haryana Gramin Bank, Rohtak35%
3Himachal Gramin Bank, Mandi35%
4Punjab Gramin Bank, Kapurthala35%
5Sarva UP Gramin Bank, Meerut35%
6Principal PNB Asset Management Co. Pvt. Ltd. 21.38%
7Principal Trustee Co. Pvt. Ltd.30%
8 PNB Metlife India Insurance Company Ltd 30%
B. Outside India: Sr. No Name of the Entity Country
ofincorporation Proportion of ownership
1 Everest Bank Ltd. Nepal 20%
Growth and Development
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
card & debit card 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 March09. As on March09, 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%.
Present Status of the Organization
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 its 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 its policy of inclusive growth in the
Indo-Gangetic belt, the Banks mission is Banking for Unbanked. The
Bank has launched a drive for biometric smart card based technology
enabled Financial Inclusion with the help of Business
Correspondents/Business Facilitators (BC/BF) so as to reach out to
the last mile customer. The 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 April09. 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.
Future Expansion of the Organization
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 worlds biggest companies compiled by the US
magazine Forbes. ParametersMar'07Mar'08Mar'09CRAR
Operating Profit*36174006574426.02
Net Profit*15402049309141.67
Deposit13986016645720976022.47
Advance9659711950215470326.55
Total Business23645628595936446324.15
(Rs. In Crores)
* Respective figure for the corresponding financial year
Departments of The Organization
The bank has following organization
Finance
Personal Administration
Human Source
Sales & Marketing
Retailing
Treasury Management
Information TechnologyProduct Profile of the Organization
Saving Account
PNB Prudent Sweep
Total Freedom Salary Account
PNB Vidyarthi Salary Account
PNB Mitra SF Account
Current Accounts
Smart Romer
PNB Vaibhav
PNB Gaurav
Fixed Deposit Accounts Spectrum fixed deposit scheme
Anupam account
Multi benefit deposit scheme
Special fixed deposit scheme
Recurring deposit scheme
PNB swecha jama yojna/flexi rd
Credit schemes
Housing loan
Car finanace
Personal loan
Professional loan
Educational loan scheme
Loan against mortgage of property
PNB financial basket scheme
Personal loan scheme for pensioners
Privilege card scheme
Other credit scheme
Social Banking
Farmers
Krishi card
Agriculture credit scheme
PNB farmers welfare trust
Women
Scheme for house wife and other women
Mahila udhyam nidhi scheme
Savings Accounts
TOTAL FREE DOOM SAVING FUNDS SALARY ACCOUNT
Purpose: To offer an attractive Saving Fund Account to Corporate
Employees for enabling them to have their Salary Credited as well
as availing overdraft facility up to Rs. 15,000/- or the last
salary credited in the account whichever is lower, at our interest
rates applicable to Personal Loans to employees, it would be
adjustable in bullet repayment at the time of next salary
credit
ELIGIBILITY: OF THE EMPLOYEE AS WELL AS CORPORATES UNDER TIE-UP
ARRANGEMENT:
The employee whose salary account is being opened should be a
permanent employee.The minimum number of accounts to be opened
should be 25 or 75% of the strength of the permanent employees of
the corporate (in that location), whichever is lower.
Initial Deposit and Minimum Balance Requirements : Zero
Service Charges : It will be a ZERO CHARGES ACCOUNT, i.e., the
customer would not be subjected to any charges in respect of any of
the services related to this account.
Other facilities offered :Free Cheque Books for routine
requirements (except bulk requirements for loans to be availed at
any other bank- in that case normal cheque book charges would be
levied);Free Statement of Accounts;Free inter-sol transactions;Free
funds transfer from their accounts within our CBS branches and at
50%discount at non-CBS branches;Free issuance of all types of
certificates including interest certificate and balance
certificate, etc; Free of Cost maintenance of Demat Account (we
shall be waiving the charges to be earned by PNB as annual fee,
charges payable to NSDL would be recovered from the customers);50%
discount in one locker at the branch convenient to the
customer;Free of Cost PNB Debit/ ATM Card;PNB-HSBC Credit Cards
shall also be got considered by HSBC on priority basis
Eligibility
Accounts can be opened in the name of students who have attained
the age of 10 years and above, studying at VARIOUS RECOGNISED
EDUCATIONAL INSTITUTIONS.
Initial Deposit Amount/ QAB/Minimum Balance Required
Zero
Overdraft Facility
The overdraft facility shall be given to students (of reputed
educational institutions only) who are staying away from their
parents. It would be made available on the request of the student
with the UNDERTAKING TO PAY/ CONSENT LETTER from earning
parents/natural guardian/local guardian of student. In the first
year of opening of account, the facility would be available up-to a
maximum limit of Rs.5,000/-. Subsequent to the satisfactory conduct
of the account, in second year it could be enhanced upto Rs.
10,000/-. Other terms & conditions of this overdraft facility
would be as under:
Rate of InterestThe overdraft facility would attract at the rate
of interest as applicable to Personal Loans to the general
public.
Age of StudentThe overdraft facility would be available for the
students, having completed the age of 18 years
PurposeContingent day to day needs of those students who are
staying away from their parents for the study purposes having got
an admission with recognised and reputed educational
institutions.
RepaymentFor repayment purposes, a single post dated cheque must
be obtained from earning parents/natural guardian/local guardian of
student and kept on record.
Recovery AspectsThe overdraft facility must be brought into
credit once in 3 months, failing which recovery process be started.
The facility would be recalled and the student would not be
eligible for this overdraft facility at any branch of our Bank. In
any case, this facility should not be allowed to continue when the
student is in the final year of study at that educational
institution, i.e. account has to be got into credit at least six
month before the expiry of the tenure of the study period without
any further continuation of overdraft facility.
Attractive Freebies/Concessions
The following freebies are also admissible:
Demand drafts for all types of fees/examination fees Free of
cost
Initial Deposit Amount The account will be opened without any
initial deposit, i.e., it
Will be Zero Balance Saving Fund Account
Incidental Charges NIL
Ledger Folio Charges NIL
Retail Internet Banking Services Free (at CBS branches only)
Intersol transactions including cash withdrawal/depositsFree
ATM Card/DEBIT CARD Free (subject to availability of ATMs in the
area)
Cheque Book Facility Free (2 cheque books in a year)
NO-FRILLS SAVING BANK ACCOUNT FOR FINANCIAL INCLUSION OF
OOREST/DESERVING SECTIONS OF SOCIETY
To ensure the financial inclusion of the poorest / deserving
sections of the society, PNB has launched a No-frills Savings Bank
Account Scheme known as PNB MITRA SAVINGS BANK ACCOUNT that can be
opened by an INDIVIDUAL singly or jointly, minors of the age of 10
years and above, minors under natural/legal guardianship. An
illiterate or a visually impaired person is also eligible to open
account under the scheme with usual safeguards. Simplified KYC
procedures may be adopted for opening of these accounts. Product
Highlights :
Initial opening of account with just Rs.25/-,
ZERO MINIMUM BALANCE requirement;
Our Bank would allow first 50 transactions in a calendar year
Free of Charge, thereafter a charge of Rs.10/- per transaction
would be levied.
Customer would not be allowed to keep balance in this account
(taken together with all other accounts with our Bank) more than
Rs.50,000/- in this account in view of related KYC Norms;.
NO FREE OF COST CHEQUE BOOKS;
PNB SMART ROAMER
The product is aimed at offering Current Account Customers
convenient opportunity to earn extra-returns on surplus funds lying
in the accounts which may not normally be utilised in the near
future or are likely to remain un-utilized. The automated nature of
the facility for 'Sweep In or Sweep Out' of more than a lac of
rupees, and creating fixed deposits for desired period, would save
lot of operational hassles and create Customer Value. Roaming
Features: The Customers would be able to operate their 'Current
Comfort' at all other CBS branches of our Bank. It will facilitate
transfer of funds as well as much faster cheque collection services
for the customers, simultaneously customers will be able to
withdraw cash from our CBS branches.
Sweep in and Sweep out Features:
The Customer shall be able to profitably deploy his funds which
were earlier not attracting any interest. Funds (above Rs. One Lac)
lying in Current Accounts and their ready availability when
required for payment/clearance of cheques. The bank would provide
the facility of automatic transfer of balance from Current Accounts
having a balance of over Rs.1,00,000/- (Rupees one lac only) in
multiples of Rs.10,000/- (Rupees Ten Thousand Only) to Fixed
Deposit Accounts. Sweep In Funds would be accepted for a minimum
maturity period of 15 days and Maximum maturity period of 45 days.
It will be optional for the customers to indicate desired
periodicity in multiples of 15 days. The customer would get the
interest on such deposit at the term deposit rate applicable for
the period indicated by him/her.
Additional Features
(subject to maintenance of stipulated 'minimum balance' in the
account throughout during previous quarter i.e. clear balance on
the closing of everyday should have been Rs.25,000/- or above)
:
i. Free ATM Card;
ii. Free Debit Card (slated to be introduced by the Bank
shortly-publicity on this aspect will begin only after launch)
iii. Free remittance of funds upto an extant of Rs. 25000/- per
month at any of our branches having connectivity under CBS.
iv. One Cheque book of 50 leaves free of cost per quarter to be
issued (inclusive of item no. xii)
v. Free e-mails for statement of account on monthly basis
vi. Same day Credit for outstation cheques drawn on other
branches of our Bank under CBS Connectivity
vii. Free collection of one outstation cheque (issued in favour
of customer) per quarter upto Rs. 10000/-(however, out of pocket
expenses shall be recovered)
viii. Immediate credit of outstation cheques upto 15,000/-
ix. 25% concession on Annual Custody Charges for Demat
Services
x. 25% concession on service charges for providing EFT
Services;
xi. Transaction i.e. T + 3 Days' Credit for outstation cheques
drawn on other bank branches at locations where we have at least
one PNB branch under CBS connectivity.
xii. If possible, Free Special Cheque Book (under relevant MICR
Code) shall also be issued to customers enabling them to make
payment by cheque to outstation parties at CBS centers.
PNB VAIBHAV ACCOUNT
Features
Quarterly average balance requiredRs.5,00,000/- and above
Initial Deposit Amount required for opening of the
account.Rs.5,000/-
Non-maintenance chargesRs.3000/- Qty.
Free (of transaction charges)Transactions allowedUnlimited
Transaction charged/L.F. chargesFree
Inter sol transfer charges Local non-base branchesFree
Inter sol transfer charges-Outstation non-base branchesFree
Outstation/local-cheques/ Bills, etc. collection charges50%
discount on normal charges
Free Statement on request.Upto 4 in a month
Statement of Account(e-mail on request) Free on monthly
basis
Remittance charges/Drafts issuing, etc.50% discount on normal
charges.
Standing Instructions Regn.Free
De-mat A/c Charges (except charges to be paid by Ban to
NSDL)First Year Free
Rebate on Locker Rent (of any size)50% rebate in locker rent of
one locker
Internet Banking Services Free
Debit-cum-ATM CardFree
RTGS Services50% concessions on normal charges.
Personalised Multi-City Cheque BookUNLIMITED
Stop Payment Instruction chargesFree
Interest/Balance certificateFree
Cash Withdrawals/Deposits charges at Local Non-Base Branches,
free upto:Rs.5 lac per day, thereafter 50% discount on normal
charges.
Cash Withdrawals/Deposits charges at outstation Non-Base
Branches, free uptoRs.1 lac per day, thereafter 50% discount on
normal charges
Charges on payment of outstation Multicity Cheques, Free
upto
Rs.1 lac per day, thereafter 50% discount on normal charges.
PNB GAURAV CURRENT ACCOUNT
Features
Quarterly average balance required
Rs.1,00,000/- and above
Initial Deposit Amount required for opening of the account.
Rs.5,000/-
Non-maintenance charges
Rs.1200/- Qty.
Free (of transaction charges)Transactions allowed
200 in a quarter
Transaction charged/L.F. charges
Rs.2/- per transaction beyond 200 transaction.
Inter sol transfer charges Local non-base branches
Free
Inter sol transfer charges-Outstation non-base branches
Upto Rs.50,000/- per day no charges, thereafter, 50% discount on
normal charges.
Outstation/local-cheques/ Bills, etc. collection charges
25% discount on normal charges
Free Statement on request.
Upto 2 in a month
Statement of Account(e-mail on request)
Free on Quarterly basis
Remittance charges/Drafts issuing, etc.
20% discount on normal charges.
Standing Instructions Regn.
50% concessions on normal charges.
De-mat A/c Charges (except charges to be paid by Ban to
NSDL)
First Year Free
Rebate on Locker Rent (of any size)
25% rebate in locker rent of one locker
Internet Banking Services
Free
Debit-cum-ATM Card
Free
RTGS Services
20% concessions on normal charges.
Stop Payment Instruction charges
Free
Interest/Balance certificate
Free
Cash Withdrawals/Deposits charges at outstation Non-Base
Branches, free upto
Rs.50,000/- per day, thereafter 25% discount on normal
charges
Charges on payment of outstation Multicity Cheques, Free
upto
Rs.50,000/-per day, thereafter 25% discount on normal
charges.
A Multi-Option Fixed Deposit Scheme that fit your needs, timing
& resources, to match your convenience
Initial Deposit of Rs.1000/-only, and thereafter in convenient
multiples of any amount of Rupee one Period of Deposit: (a)
Maturity Option: For any period from 15 days to 120 months-For a
single Term Deposit less than Rs. 15 lac and for any period from 7
days to 120 months-For a single Deposit of Rs. 15 lac &
above.(b) Income Option: For any period from 6 months to 120
months. At PAR Collection of Fixed Deposit Receipt Payable at par
at all CBS branches(premature payment, loans andother miscellaneous
matters before maturity of the FDR shall be attended to only by the
issuing branch) Multiple options available for interest payment
viz. Monthly/Quarterly/Half-Yearly/Yearly or on maturity For an
amount of Rs. 10,000/- and above overdraft with cheque book
facility is available, to enable use of deposits. The customer
shall also be at liberty to make use of the facility through
ATM-cum-Debit Card under 'Anywhere-Anytime Banking'. It will enable
customers to have freedom to utilise their Fixed Deposits as and
when needed without even coming to the Bank. The interest is
chargeable only for the amount and period for which the overdraft
facility has been availed; The illiterate and blind persons can
also open the account without exercising the option of Overdraft
Facility. Margin and rate of interest on Loans against deposits
under the scheme shall be as per prescribed guidelines which shall
be subject to modifications from time to time
Automatic payment of LOCKER rent out of Interest proceeds
Conversion facility regarding mode of payment of interest
allowed;(provided FDR has been issued for a period of 12 months or
more and remaining period of FD is more than 6 months) without
invoking any penal provision Premature withdrawal of Deposit
without any penalty
Automatic Renewal facility is provided as per option exercised
by the depositor
Availability of premature extension
Part withdrawal in multiples of Rs.1000/- without loss of
interest on remaining FDRANUPAM ACCOUNT
Our Bank has several Domestic Deposit Schemes designed to cater
to the needs of various segments of customers to meet your specific
requirement.
The features of the Anupam Account Deposit Scheme are as
under:1. ParticipationAnupam Account Scheme may be opened in the
name of individual(s), sole proprietorship concern, partnership
firm, association, trust, Ltd. Company etc. However, Anupam Account
shall not be opened in the name of a minor, illiterate and blind
persons.2. Minimum Initial DepositRs.10,000/- and thereafter in
multiples of Rs.1000/- thereof.
3. Period of DepositFor any period from 6 months to 120 months.
Existing deposits under Multi Benefit Deposit Scheme for
Rs.10,000/- and above with unexpired term of 6 months or more are
eligible for transfer to Anupam Account Scheme.
4. Overdraft FacilityOverdraft facility shall be permitted
through a Current Account and a Cheque Book will be issued to the
depositor on the same day.
The margin on the amount of overdraft against the deposit is
For PublicMaturity Period remaining at the time of granting
overdraft
Margin
Upto 2 years
5%
Above 2 years and upto 3 years
7.5%
Above 3 years and upto 4 years
10.0%
Above 4 years and upto 5 years
12.5%
Above 5 years
25%
5. Third Party Advance Only depositors can avail overdraft
facility against their deposits under this scheme.No third party
advance ie Credit Facility / overdraft to persons other than
depositors is allowed under Anupam Account. Even the overdraft
facility to a proprietorship firm against Fixed Deposit in the name
of its proprietor is not allowed.
6. Premature withdrawal of DepositIf any depositor desires to
withdraw the deposit before maturity, Bank may at its discretion
repay the deposit with upto date quarterly compounded interest at
the rate applicable to the period for which deposit remained with
the bank
7. Facility of Further Fixed Deposit in the same Anupam
AccountFurther, Fixed Deposit can be accepted in the same Anupam
Account on your request and the limit in the overdraft account be
increased accordingly against the additional deposit and it will
also be endorsed in the Receipt Form with you.
8. Renewal of Term Deposit on MaturityRenewal of Fixed Deposit
is permitted at your request, if no overdraft is outstanding
against it.
9. Withdrawable in multiples of Rs.1000/-You may withdraw any
amount before maturity anytime as well in multiples of Rs.1000/-
any time according to your convenience without breaking the entire
deposit and also without losing interest on remaining part of Fixed
Deposit Receipt under the Scheme.
MULTI BENEFIT FIXED DEPOSIT SCHEME
It entitles you to earn interest at term deposit rates on
quarterly compounding basis.
You may open with any amount with a minimum deposit of Rs.1000/-
for any period from 6 months to 120 months.
You can avail the additional facility of automatic renewal of
fixed deposit with or without interest on maturity.
On demand, Loan in this MBFD scheme is also made available by
us.
Interest at term deposit rates is computable on quarterly
compounded basis
The small monthly savings in the Recurring Deposit scheme enable
you to accumulate a handsome amount on maturity.
Account can be opened with a minimum monthly deposit of Rs.100/-
or its multiples for a period of 6 months to 120 months in
multiples of 3 months.
Interest at term deposit rates is computable on quarterly
compounded basis
The small monthly savings in the Recurring Deposit scheme enable
you to accumulate a handsome amount on maturity.
PNB SWICHA JAMA YOJNA/FLEXI
Individuals can open account, singly or jointly, by a minor of
the age of 10 years and above in his name or through his
guardian.
A depositor can choose a monthly installment with a minimum of
Rs.100 or above in its multiples. However, the subsequent monthly
installment will not exceed ten times of such core amount without
any ceiling on maximum amount. No matter, even if the monthly
installment is skipped.
Deposit accepted for any period from 6 months to 120 months and
interest is paid at term deposit rates on half yearly basis.Credit
Scheme
Housing Loan
Car Loans
Own a vehicle with the friendliest and most convenient car loan.
Either you can purchase a new Car/ Van/ Jeep or raise loan to
purchase old vehicles that are not older than 3 years. Finance will
be provided for purchase of vehicle of indigenous/ foreign
makes.
Individuals as well as Business Concerns (Corporate or
non-corporate).
For Individuals: 25 times of the monthly net salary OR Rs.15
lac, whichever is lower. Income of spouse can be taken into account
for determining loan amount. In such cases, the spouse shall stand
as a guarantor.
For Business Conerns: No ceiling on loan amount.
The vehicle purchased with the amount of loan is to be
hypothecated to the Bank. It will be registered in the name of the
borrower jointly with the Bank.
Guarantee of spouse, if employed or third party guarantee,
OR
Collateral Security in the shape of either Immovable Property or
Liquid Security equivalent to 100% of loan amount
For new Car/ Van/ Jeep: The loan amount together with interest
is to be repaid maximum in 84 Equated Monthly Instalments
(EMIs)
For old Car/ Van/ Jeep: The loan amount together with interest
is to be repaid maximum in 60 Equated Monthly Instalments
(EMIs)
1% of the loan amount unt, with a maximum of Rs.4,000/-
Rs.300/- upto Rs.2 LacRs.500/- over Rs.2 Lac
The intending borrower will be required to settle the
transaction for purchase of vehicle needed by him/her with the
seller and will be required to deposit the difference of the cost
of the vehicle to amount of loan, and thereafter, the advance will
be allowed to him/her from the bank by paying the entire price of
the vehicle to the seller directly on behalf of the borrower
) All permanent Defence Personnel including officials of
Military Station Headquarters, BSF, CRPF, CISF, ITBPii) Confirmed/
permanent employees of Central/ State Govt/ PSUs and all reputed
companies/ Institutions, who are drawing their salary through
accounts maintained with our branches. Employees of above
categories under check-off facility iii) Professionally qualified
Doctors viz. MBBS, BDS & above having annual income of Rs.4.00
lac & above. Minimum Net Monthly Income
- Rs.15000 per month for eligible customers at Metro Centres;-
Rs.12500 per month for eligible customers at Urban Centres; and-
Rs.10000 per month for eligible customers at Semi-Urban and Rural
Centres.
However, for Teachers, Army Jawans, other permanent employees of
Military Station Headquarters and Para Military Personnel whose
salary is being credited and disbursed through our branches the
minimum Net Monthly Income criteria shall be Rs.7500/- at all
Centres viz. Metro, Urban, Semi-Urban and Rural.
Term Loan/ Overdraft Minimum amount of loan will be Rs.50,000/-
and maximum amount of loan Rs.4,00,000/- or 20 times monthly net
salary, whichever is lower, depending upon the repaying
capacity.
Term Loan:60 Equated Monthly Instalments (EMIs) OR remaining
period of service, whichever is earlier. Instalment to commence one
month after disbursement of loan.Overdraft:The overdraft limit
shall be adjusted within a maximum period of 60 months by reducing
Drawing Power(DP) equivalent to EMI amount at the beginning of
every month.However, loan allowed to Army Jawans, other permanent
employees of Military Station Headquarters and Para Military
Personnel shall be Repayable in maximum 36 Equated Monthly
Instalments or remaining period of stay at the particular posting,
whichever is lowerIn Case of Employees of Govt./Institutions
etc.
In case of employees of government/institution etc., irrevocable
letter of authority from the borrower to remit salary/installment
and other amount payable to bank.Post dated cheques towards monthly
installments be obtained from the borrower under the cover of
letter of deposit (Mandate of the borrower conveying deposit of
PDCs for appropriation in the loan account).Where the employer
agrees to check off facility, at least one PDC to be obtained.In
case of Army Officers :
In case of Army Jawans, Other permanent employees of Military
Station Headquarters and Para Military Personnel (Undertaking to be
obtained from the Station Commandant/ Unit Incharge at the time of
retirement/death/transfer of a particular Jawan/Personnel or on
transfer of a unit, loan under the scheme will get adjusted.)
Professional Loan Schemes
PNB extends assistance to self-employed persons, firms and joint
ventures of such professional persons engaged in professions such
as:
Medical practitioners including dentists, chartered accountants,
cost accountants, practicing company secretaries, who are not in
regular employment of any employer, accredited journalists or
cameramen who are free lancers, i.e. not employed by a particular
newspaper/magazine, lawyers or solicitors, engineers, architects,
surveyors, construction contractors or management consultants or to
a person trained in any other art or craft who holds either degree
or diploma from any institution established, aided or recognised by
Government or to a person who is considered by the bank as
technically qualified or skilled in the field in which he is
engaged. Loans under this scheme may be granted for the purpose of
financing purchase of equipment used by the borrowers, business
premises, construction, making alterations or renovation of
business premises/nursing homes or for working capital
requirements, in their professions.
Persons already practicing or new entrants in various
professions, having licenses issued under Central or State
Legislations;
Associations of persons engaged in a single profession provided
that each member of such an association is qualified and duly
licensed to practice in the profession; and
The qualified professionals will be required to produce a
certified copy of the license for the record at the bank. Need
based on merits within the overall permissible limits as under:
Metro/ Urban S.Urban/Rural Area 1. Medical practitioners Rs 5.00
lac Rs 10.0 lac
2. Other professionals Rs 5.00 lac Rs 5.00 lac
Margin: Nil up to Rs.25000/-. 25% Above Rs.
25000/-.Hypothecation/Mortgage of the goods purchased/created with
the amount of loan till the final adjustment of bank's loan and
interest thereon.
Collateral security by way of immovable properties or acceptable
third party guarantee in case of advances above Rs. 25000/-.
Term Loan
Loans up to Rs.50000/- 48 months
Loans beyond Rs.50000/- 60 months
Working Capital loans are renewable every year.
Payments will be made direct to the suppliers/ dealers. In case
of construction of the premises, the loan may be disbursed in
phases after verifying the end use in terms of the plan as also at
the spot.
The Scheme aims at providing financial assistance to deserving /
meritorious students pursuing higher education in India or abroad.
viz., Graduation courses B.A., B.Com., B.Sc., etc., Post-Graduation
courses, Masters & Ph.D; Professional courses, Engineering,
Medical, Agriculture, Veterinary, Law, Dental, Management, Computer
etc., Computer Certificate courses of reputed Institutes accredited
to Department of Electronics or institutes affiliated to
University; Courses like ICWA, C.A., CFA, etc., courses conducted
by IIM, IIT, IISc, XLRI, NIFT, etc., Regular Diploma/Degree courses
conducted by Colleges/Universities approved by
UGC/Govt./AICTE/AIBMS/ICMR, Regular Degree / Diploma courses like
Aeronautical, Pilot training, Shippling etc. approved by DGCA/
etc., Courses offered by National Institutes and other reputed
Private Institutes.
Students should approach the branch nearest to the place of
domicile.Interest is charged monthly on simple basis during the
repayment holiday/moratorium period & concession of 1% in rate
of interest is allowed provided the same is serviced regularly
during study period. Punjab National Bank has tied up with Kotak
Mahindra Insurance to provide life insurance cover for Student
borrowers.Need based finance, subject to repaying capacity of the
parents / students with margin and the following ceilings :-For
studies in India: Maximum Rs.10.00 lacs.
For studies abroad: Maximum Rs.20.00 lacs.
Nil.
Above Rs.4.00 lacs: Studies in India5%
Studies Abroad15%
Reimbursement of related expenses such as admission fee, monthly
fee, Boarding and lodging expenses in recognized Boarding Houses
etc. already incurred by way of loan taken from own sources (to
meet the contingency) by the applicant, if claimed within 3 (three)
months of such payment and before consideration of the loan by the
Bank.
Second time Education Loan can be sanctioned to the same student
borrower for completion of next higher course
Loan against Mortgage
.
Scheme seeks to provide finance against mortgage of immovable
property situated in Metro/ Urban/ Semi Urban centres. The scheme
is designed to offer instant solutions relating to business needs
or for personal needs such as, children's higher education, travel,
daughter's marriage, medical emergencies, etc. Loan is, however,
not available for speculative purpose.
Eligibility
Employees of Central/ State Govt/ Schools/ Colleges/ Public
Sector Undertakings (PSUs), Reputed Corporates and other intcome
tax assesses who are below the age of 60 years
Business Enterprises having a satisfactory track record of
3 years of cash profit; and
Net profit in the immediately preceding financial year
For Individuals Minimum net monthly salary/ net annual income of
Rs.10,000/ Rs.1,20,000/- for salaried and for other income tax
assesses respectively
Net annual income should be double that of total EMIs for the
year
For Business Enterprises Minimum net annual income/ profit of
Rs.1,20,000/-
Net income/ profit should be 1.5 times that of total EMIs for
the year
Term Loan & Overdraft
Minimum Loan:- Rs. 1 LacMaximum Loan:- Rs.100 Lacs
. OBJECTIVEOffers attractive benefits as part of a Package to
those customers who have the capacity and are willing to avail a
minimum specified loan amount under at least two or more specified
Retail Loan Schemes.
2. SCHEME APPLICABILITYAuthorised Branches.
3. ELIGIBILITY Individuals, including joint owners, who are
willing to avail a minimum loan of Rs.5.00 lac as a package under
at least two specified Retail Loan Schemes at a time. One of which
necessarily be for HOUSING and the other may be any one of the
following purposes:
Car, Personal or Education. At the same time, such individuals/
including joint owners should have adequate capacity to regularly
service such loans.
4. PURPOSEFinance will be allowed for:
Meeting need based requirement of purchase / construction
/addition / repair/alteration/renovation/furnishing of House/Flat.
Loans are also available for purchase of land/plot for House
Building.
Loan on pari passu or second charge basis only to confirmed
employees of Central/ State Government / Public Sector Undertakings
(PSUs) maximum upto Rs. 20 lacs. The quantum of loan be decided
taking into account the amount of earlier loan availed and repaying
capacity of the borrower.
Purchase of New Car.Meeting urgent requirements of personal
nature, such as marriage of children, holiday, foreign travel,
family function, medical expenses etc. However, loan will not be
granted for speculation purposes.Education for Self or Children,
including the school education of the child.
5. AMOUNT OF LOANFor Housing: Need Based - Minimum Rs.2
lac.Maximum Rs. 50 lacs
For Car : Need Based - Minimum Rs.2 lac.
For Personal Needs: Need Based - Minimum Rs.1 lac Maximum Rs. 2
lacs
For Education: For Studies in India - Minimum Rs.1 lac Max.
Rs.5.00 lacFor Studies abroad - Minimum Rs.1 lac Max. Rs.10.00
lac
6. MARGIN10% except when loan is availed for Personal and or
Educational needs in which case it shall be Nil. 7. RATE OF
INTEREST
Housing -
TENORFor loans repayable in/upto
Rate of Interest @percent p.a.REVISED w.e.f. 01.08.2003i) Upto 5
years
7.75ii) Above 5 & upto 10 years
8.25Car - PTLR presently 11.50%Personal - 13%
Education - 50 basis points below PTLR viz.11% 8. REPAYMENT
Housing - Maximum 10 years (120 months) in equal Monthly
Instalments.
For Car and Personal - Maximum 4 years (48 months) in equal
Monthly Instalments.
For Education - Maximum 7 years (84 months) in equal Monthly
Instalments.
Obtention of advance cheques (P.D.Cs) signed by the borrowers be
ensured towards repayment of equated monthly instalments alongwith
letter of deposit. In case of Housing and Education Loans minimum
24 advance cheques be obtained at a time. In case of loan of other
purposes cheque for complete repayment period be taken.
No moratorium period for repayment will be allowed and repayment
to commence immediately.
9. MODE OF DISBURSEMENTAs per extant guidelines of specific
schemes viz. Housing, Car, Personal and Education. However, No
charges for issue of Demand Draft /Bankers cheques are to be
levied.
10. INSURANCE Comprehensive Insurance Policy to be obtained
where loan is allowed for Housing and Car needs.
11. SECURITY:Housing
Equitable/ Registered Mortgage of the House/Flat/ Plot
Financed.
Obtention of pari passu or second charge over the property
mortgaged in favour of other Lender in situations where senior
authorities consider requests and allow loan only to confirmed
employees of Central / State Govts. / Public Sector Undertakings,
who have raised funds for construction / acquisition of
accommodation from other sources and need supplementary finance,
for an amount of loan of maximum upto Rs. 20 lacs, which, however,
should be for a minimum of Rs. 2lacs as prescribed above.
Car
Hypothecation of the Vehicle financed.
Equitable mortgage should be for the total amount of loan.
12. GUARANTEESuitable guarantee acceptable to the Bank may be
obtained which may also include guarantee from family members/other
relatives.
13. UPFRONT & DOCUMENTATION CHARGESFlat Upfront charges of
Rs.2,500/- & no documentation charge.
14. PREPAYMENT PENALTY In case any of the loan facilities
allowed are adjusted within a period of three years, borrower(s)
will be required to pay a prepayment Penalty @ 2% on the amount
which had not become due for payment.
15. GENERALThe concessional loan facility is available provided
the combined availment is Rs. 5 lacs or more.
Equitable Mortgage of the Immovable Property against which
Housing loan has been allowed will secure the combined loan for two
or more purposes.
Equitable Mortgage shall not to be released till final
adjustment of all the loans.
Indian Retail Banking continues to redefine the credit growth in
the country. It grew by a whopping 44.4% in 2005-06 to touch
Rs3,538 billion. This leap was despite the increase in risk weight
by RBI for housing and real estate loans during August, 2005.
Housing, which constitutes more than 52% of all retail loans, grew
at a robust rate of 44.35% during 2005-06. In order to help banks
in India to understand the market and competition and plan future
strategies, we have just come out with an Industry Insight on
Indian Retail banking 2006 edition. This report analyses the retail
banking market and its segments in India and presents the key
trends, along with issues and challenges. The report also paints a
future outlook for the market. Besides it profiles 21 major players
in the retail banking space and their strategies.
This report will be of immense use to all banks in India to
review and formulate their strategies in the retail space. It
primarily covers analysis of the present status, current trends,
major issues & challenges in the growth of the retail banking
sector.
Major points discussed in this report are:-Global retail banking
vis--vis Indian scenario
-Indian retail banking overview-What are the regulatory factors
involved in Indian banking industry?- How interest rate risks,
money laundering, and outsourcing are affecting the performance of
banking sector?- What would be the impact of Basel-II norms in
Indian banking industry?- How the banking industry would combat the
competition from upcoming sectors like mutual funds?- What are the
various issues and challenges before this industry?
With a jump in the Indian economy from a manufacturing sector,
that never really took off, to a nascent service sector, Banking as
a whole is undergoing a change. A larger option for the consumer is
getting translated into a larger demand for financial products and
customisation of services is fast becoming the norm than a
competitive advantage.
With the Retail banking sector expected to grow at a rate of 30%
[Chanda Kochhar, ED, ICICI Bank] players are focussing more and
more on the Retail and are waking up to the potential of this
sector of banking. At the same time, the banking sector as a whole
is seeing structural changes in regulatory frameworks and
securitisation and stringent NPA norms expected to be in place by
2004 means the faster one adapts to these changing dynamics, the
faster is one expected to gain the advantage. In this article, we
try to study the reasons behind the euphemism regarding the
Retail-focus of the Indian banks and try to assess how much of it
is worth the attention that it is attracting.
Potential for Retail in India: Is sky the limit?
The Indian players are bullish on the Retail business and this
is not totally unfounded. There are two main reasons behind this.
Firstly, it is now undeniable that the face of the Indian consumer
is changing. This is reflected in a change in the urban household
income pattern. The direct fallout of such a change will be the
consumption patterns and hence the banking habits of Indians, which
will now be skewed towards Retail products. At the same time, India
compares pretty poorly with the other economies of the world that
are now becoming comparable in terms of spending patterns with the
opening up of our economy. For instance, while the total
outstanding Retail loans in Taiwan is around 41% of GDP, the figure
in India stands at less than 5%. The comparison with the West is
even more staggering. Another comparison that is natural when
comparing Retail sectors is the use of credit cards. Here also, the
potential lies in the fact that of all the consumer expenditure in
India in 2001, less than 1% was through plastic, the corresponding
US figure standing at 18%.
But how competitive are the players?
The fact that the statistics reveal a huge potential also brings
with it a threat that is true for any sector of a country that is
opening up. Just how competitive are our banks? Is the threat of
getting drubbed by foreign competition real? To analyze this, one
needs to get into the shoes of the foreign banks. In other words,
how do they see us? Are we good takeover targets? Going by
international standards, a large portion of the Indian population
is simply not bankable
taking profitability into consideration. On the other hand, the
financial services market is highly over-leveraged in India.
Competition is fierce, particularly from local private banks such
as HDFC and ICICI, in the business of home, car and consumer loans.
There, precisely lie the pitfalls of such explosive growth. All
banks are targeting the fluffiest segment i.e. the upwardly mobile
urban salaried class. Although the players are spreading their
operations into segments like selfemployed and the semi-urban rich,
it is an open secret that the big city Indian yuppies form the most
profitable segment. Over-dependence on this segment is bound to
bring in inflexibility in the business.What about the foreign
giants?
The foreign banks have identified this problem but there are
certain systematic risks involved in operating in the Retail market
for them. These include regulatory restrictions that prevent them
from expanding their branch network. So these banks often take the
Direct Selling Agent (DSA) route whereby low-end jobs like sourcing
or transaction processing are outsourced to small regional layers.
So now on, when you see a loan mela or a road show showcasing the
retail bouquet of an elite MNC giant, you know that a significant
commission earned out of any such booking gets ploughed back to our
own economy. Perhaps, one of the biggest impediments in foreign
players leveraging the Indian markets is the absence of positive
credit bureaus. In the west the risk profile can be easily mapped
to things like SSNs and this information can be publicly traded.
PAN is a step in this direction but lot more work need to be done.
What has been a positive step towards this is a negative file
sharing started by a consortium of 11 banks. However, as a McKinsey
study points out actual write-offs on NPAs show a strong negative
correlation with sharing of positive information. On top of this,
the spend-now-pay-later credit culture in India is just not picking
up. A swift legal procedure against consumers creating bad debt is
virtually nonexistent. Finally, the vast geographical and cultural
diversity of the country makes credit policy formulation a tough
job and it simply cannot be dictated from a Wall Street or a
Singapore boardroom! All these add up to the unattractiveness of
the Indian retail market to the foreign players. So over the past
few years, in spite of the entry of MNCs in many industries, Retail
Banking has seen a flurry of panicky exits. Fewer than 40 remain in
India and their share of total bank assets currently 7.2% is
falling. Those that remain might be thought to be likely buyers of
Indian banks. Yet Citibank, HSBC and Standard Charteredall in India
for more than a century, and with
relatively large retail networksseem to have no pressing need to
acquire a local bank.
Established foreign banks have preferred to take over customers
or businesses from other
foreign banks that want to leave. Thus HSBC, in recent years,
has acquired customers from
France's BNP, Germany's Deutsche Bank and Japan's Bank of
Tokyo-Mitsubishi. ABN Amro took over Bank of America's retail
business.
So all for the keeping then?
This will perhaps be the most wrongful inference that can be
drawn from the above. We just
cannot afford to look inwards and repeat the mistakes that were
the side effects of the
Nationalization of the Banking System. A growing market can
never be an alibi for lack of
innovation. Indian banks have shown little or no interest in
innovative tailor-made products.They have often tried to copy
process designs that have been tested, albeit successfully, in the
West. Each economic culture has its own traits and one who
successfully adapts those to the business is the eventual winner. A
case in point is the successful implementation of micro-credit
networks in Bangladesh. Positioning a bank as a tech-savvy
financial vendor in a country where Internet penetration is an
abysmal 1.65% can only add to the over-leveraging as pointed out
earlier. The focus of the sector should remain in macroeconomic
wealth creation and not increasing the per capita indebtedness that
will do little but add to the NPA burden. Retail Banking in India
has to be developed in the Indian way, notwithstanding the long
queues in front of the teller counter in the SBI Joka branch!
Awards
Awards & Achievements of Punjab National Bank in Recent
Times
AWARDS WON DURING THE YEAR 2013-14* MSME Banking Excellance
Award 2014
* PNB bags RBI Rajbhasha Award 2014* Annual Social Banking
Excellence Award 2014
* Golden Peacock Business Excellence Award 2014 by Institute of
Directors* PNB RECEIVED AWARD FOR CSR ACTIVITY 2014
* PNB bags Golden Peacock award for innovative Product/Service
for the year 2014
* Vigilance Excellence Award 2013-14
* ABP News presented PNB withGlobal CSR Excellence and
Leadership Award forOrganisations with Best CSR Practices on
17.02.2014
*Punjab National Bank conferred with Appreciation Certificate in
6th Global CSR Summit - cum Excellence AwardsAWARDS WON DURING THE
YEAR 2012-13AWARDS WON DURING THE YEAR 2011-12AWARDS WON DURING THE
YEAR 2010-11AWARDS WON DURING THE YEAR 2009-10
Top of Form
Balance Sheet of Punjab National Bank------------------- in Rs.
Cr. -------------------
Mar '14Mar '13Mar '12Mar '11Mar '10
12 mths12 mths12 mths12 mths12 mths
Capital and Liabilities:
Total Share Capital0.00353.47339.18316.81315.30
Equity Share Capital0.00353.47339.18316.81315.30
Share Application Money0.000.000.000.000.00
Preference Share Capital0.000.000.000.000.00
Reserves0.0032,323.4327,477.8921,191.7515,915.63
Net Worth0.0032,676.9027,817.0721,508.5616,230.93
Deposits0.00391,560.06379,588.48312,898.73249,329.80
Borrowings0.0039,620.9237,264.2731,589.6919,262.37
Total Debt0.00431,180.98416,852.75344,488.42268,592.17
Other Liabilities &
Provisions0.0015,019.1513,524.1812,328.2710,317.69
Total
Liabilities0.00478,877.03458,194.00378,325.25295,140.79
Mar '14Mar '13Mar '12Mar '11Mar '10
12 mths12 mths12 mths12 mths12 mths
Assets
Cash & Balances with
RBI0.0017,886.2518,492.9023,776.9018,327.58
Balance with Banks, Money at
Call0.009,249.1310,335.145,914.325,145.99
Advances0.00308,725.21293,774.76242,106.67186,601.21
Investments0.00129,896.19122,629.4795,162.3577,724.47
Gross Block0.003,357.683,168.863,105.604,215.21
Revaluation Reserves0.000.000.000.001,491.99
Accumulated Depreciation0.000.000.000.001,701.74
Net Block0.003,357.683,168.863,105.601,021.48
Capital Work In Progress0.000.000.000.000.00
Other Assets0.009,762.589,792.888,259.426,320.07
Total Assets0.00478,877.04458,194.01378,325.26295,140.80
Contingent
Liabilities0.00231,810.55224,750.05138,915.2668,124.47
Bills for collection0.000.000.000.0033,215.78
Book Value (Rs)0.00924.45820.13678.91514.77
Profit & Loss account of Punjab National
Bank------------------- in Rs. Cr. -------------------
Mar '14Mar '13Mar '12Mar '11Mar '10
12 mths12 mths12 mths12 mths12 mths
Income
Interest Earned0.0041,893.3336,428.0326,986.4821,466.91
Other Income0.004,215.924,202.603,612.583,565.31
Total Income0.0046,109.2540,630.6330,599.0625,032.22
Expenditure
Interest expended0.0027,036.8223,013.5915,179.1412,944.02
Employee Cost0.005,674.724,723.484,461.103,121.14
Selling, Admin & Misc
Expenses0.008,331.537,717.106,269.474,838.88
Depreciation0.00318.50292.26255.85222.83
Preoperative Exp Capitalised0.000.000.000.000.00
Operating Expenses0.008,165.057,002.756,364.225,761.36
Provisions &
Contingencies0.006,159.705,730.094,622.202,421.49
Total Expenses0.0041,361.5735,746.4326,165.5621,126.87
Mar '14Mar '13Mar '12Mar '11Mar '10
12 mths12 mths12 mths12 mths12 mths
Net Profit for the Year0.004,747.674,884.204,433.503,905.36
Extraordinary Items0.000.000.000.000.00
Profit brought forward0.000.000.000.007.64
Total0.004,747.674,884.204,433.503,913.00
Preference Dividend0.000.000.000.000.00
Equity Dividend0.00954.38746.19696.99693.67
Corporate Dividend Tax0.00162.20121.05113.07116.43
Per share data (annualised)
Earning Per Share (Rs)0.00134.31144.00139.94123.86
Equity Dividend (%)0.00270.00220.00220.00220.00
Book Value (Rs)0.00924.45820.13678.91514.77
Appropriations
Transfer to Statutory
Reserves0.003,631.104,016.963,623.441,532.46
Transfer to Other Reserves0.00-0.010.000.001,570.44
Proposed Dividend/Transfer to
Govt0.001,116.58867.24810.06810.10
Balance c/f to Balance Sheet0.000.000.000.000.00
Total0.004,747.674,884.204,433.503,913.00
49
