PROJECT REPORT
ON
PUNJAB & SIND BANK
Submitted to PROTON business school In Partial fulfillment of the requirements for the award of degree of MASTER OF BUSINESS ADMINISTRATION (M.B.A.)
(2009-2011)
SUBMITTED BY
RINKU KUMARI ROLL NO- 09PR00102AA028
M.B.A. 2nd YEAR
PREFACE
India is a developing country and we all know that banking sector plays a very important role. In development with the increasing use of banking and finance in every field, new trends in their technology and modern use are being evolved day to day to meet the requirements. Infact “BANKING” has become the need of today.The purpose of PROJECT REPORT is to expose the students in the market and in the field of banking, finance and investments and to develop the ability in the students to deal with all types of customers.
Preparing project report in the summer vacations and under going the summer training is the indispensable part of the college period. It provides the opportunity to review what we have gained in the training period and also provides the way to convey the knowledge and ideas to others.
The present project provides the information on the “PUNJAB & SIND BANK”.
Learning is not possible in solitude and has to have the support and able guidance of some people around us in various roles and capacities. The satisfaction and euphoria that accompanies the successful completion of any task would be incomplete without the mention of the people who made it possible because success is the epitome of hard work, undeterred missionary zeal, fast determination, and consideration.
Therefore, we consider it a pleasant duty to express our heartiest appreciation, gratitude, and indebtedness to our project guide Mr. Nitish Dipankar for his keen interest, sincere extortion, invaluable and pain taking excellent guidance, continuous calm endurance, inspiration and encouragement during each phase of the present project.
INDEX
ACKNOWLEDGEMENTUNDERTAKINGPREFACEINTRODUCTIONCHANGES IN BANKING SECTOR
CHALLENGES AHEAD TECHNOLOGY IN BANKING SECTOR COMPANY PROFILE ACHIVEMENTS AND ACTIVITIES NATIONALISATION MISSION AND VISION
BUSINESS FOCUS CAPITAL STRUCTURE DISTRIBUTION NETWORK MANAGEMENT CORPORATE GOVERENCE WORK PROCESS IN PUNJAB & SIND
BANK BUSINESS CYCLE
FINANCE DEPARTMENT INTRODUCTION HIERARCHY OF THE FINANCE
DEPARTMENT ACCOUNT SECTION COST SECTION FINANCE MANAGEMENT PREPARATION
HIGHLIGHTS OF FINANCIALPERFORMANCE OF PUNJAB AND SIND BANK
ANALYSIS OF WORKING CAPITAL INTRODUCTION CONCEPT OF WORKING CAPITAL COMPONENTS OF WORKING CAPITAL TYPES OF WORKING CAPITAL SIGNIFICANCE OF WORKING CAPITAL IMPORTANCE OF WC RATIOS
STATEMENT SHOWING CASH AND BALANCE ANALYSISLOANS AND ADVANCES ANALYSISCURRENT LIABILITIES ANALYSISRATIO ANALYSIS FUND FLOW ANALYSIS
CASH FLOW STATTEMENT OF THE YEAR
ASSET QUALITY INVESTMENTS
OBJECTIVES & SCOPE OF STUDYRESERCH METHODOLOGYRESULT, ANALYSIS & DISCUSSIONLIMITATIONSOBSERVATIONS RECOMMENDATIONAPPENDIX QUESTIONNAIREBIBLIOGRAPHY
ACKNOWLEDGEMENT
To acknowledge all the persons who had helped for the
fulfillment of the project is not possible for any researcher but
in spite of all that it becomes the foremost responsibility of the
researcher and also the part of research ethics to acknowledge
those who had played a great role for the completion of the
project.
So in the same sequence at very first, I would like to
acknowledge my parents because of whom I got the existence
in the world for the inception and the conception of this
project. Later on I would like to confer the flower of
acknowledgement to Mr. Vinay Goel and other faculty members
who taught me that how to do project through appropriate
tools and techniques.
Rest all those people who helped me are not only matter of
acknowledgment but also authorized for sharing my success.
RINKU KUMARI
UNDERTAKING
I Rinku Kumari do here by declare that the project report on study conducted on “Financial Institutions ” in PUNJAB & SIND BANK, submitted by me in the partial fulfillment of M.B.A. (Master of Business Administration), PROTON business school ,Indore(M.P)
What ever Data has been disclosed in the report are authentic to the best of my knowledge. I have not submitted this training report to any other university ever before.
RINKU KUMARI M.B.A. FINANCE
PREFACE
As a matter of Knowing how things look like in practical sense every M.B.A. student has to undergo training in an approved business organization for the tenure of not less than six weeks. I got a chance to seek more and more knowledge under the guidance of professional managers.On the completion of M.B.A. Degree students have hand on experience that will help for facing challenging jobs under such competitive environment. I have completed my project successfully in “The study of working capital analysis” under the guidance of S. Tarlok Singh (Asst. Manager Finance).During the above course tenure Mr. Amarjeet Singh (Cash Manager)
helped me for getting knowledge concerning with taxation and specially
I would like to thank Mr. R.k. Sharma for allowing me to work in Bank.
INTRODUCTION
The main idea of the project is to carry out a research for the working captal
management of Punjab & Sind Bank . The bank attained market leadership
in Premium salary accounts and second largest seller of regular salary
account in a record time.The situation is similar now. Will the company be
able to repeat the same performance for all the category of this product?
It has developed its products with better service, new and best management
information system. The project aims to find out the response of the
corporate through a research process.
The project was done in various phases:
The first phase comprises gathering information related to the
product and population,
In the second phase a survey is to be conducted on corporate
customers of Gurdaspur region through direct questionnaire.
The findings and representation of the research is done in the third
phase
And in the last phase all the findings and analysis along with
conclusions and recommendation has been submitted in report format
for further use.
It was also necessary to do a competitor analysis as well to know the
strength and weakness of the various competitors as the segment has a lot of
players and more global players will join the competition soon. Various
marketing tools have been used to analyze the current situation of Punjab&
Sind Bank’s salary account segment and find out its position among the
competitors in order to form a strategy for the Punjab & Sind Bank in salary
account segment.
Changes in Banking Sector
The face of banking is changing rapidly. Competition is going to be tough
and with financial liberalisation under the WTO, banks in India will have to
benchmark themselves against the best in the world. For a strong and
resilient banking and financial system, therefore, banks need to go beyond
peripheral issues and tackle significant issues like improvements in
profitability, efficiency and technology, while achieving economies of scale
through consolidation and exploring available cost-effective solutions. These
are some of the issues that need to be addressed if banks are to succeed, not
just survive, in the changing milieu.
Challenges Ahead
(i) Improving profitability : The most direct result of the above
changes is increasing competition and narrowing of spreads and its impact
on the profitability of banks. The challenge for banks is how to manage with
thinning margins while at the same time working to improve productivity
which remains low in relation to global standards. This is particularly
important because with dilution in banks’ equity, analysts and shareholders
now closely track their performance. This will require tremendous efforts in
the area of technology and for banks to build capabilities to handle much
bigger volumes.
(ii) Reinforcing technology: Technology has thus become a
strategic and integral part of banking, driving banks to acquire and
implement world class systems that enable them to provide products and
services in large volumes at a competitive cost with better risk management
practices.
The pressure to undertake extensive computerizations is very real as banks
that adopt the latest in technology have an edge over others. Customers have
become very demanding and banks have to deliver customized products
through multiple channels, allowing customers access to the bank
round the clock.
(iii) Risk management : The deregulated environment brings in its
wake risks along with profitable opportunities, and technology plays a
crucial role in managing these risks. In addition to being exposed to credit
risk, market risk and operational risk, the business of banks would be
susceptible to country risk, which will be heightened as controls on the
movement of capital is eased. In this context, banks are upgrading their
credit assessment and risk management skills and retraining staff,
developing a cadre of specialists and introducing technology driven
management information systems.
(iv) Sharpening skills : The far-reaching changes in the banking
and financial sector entail a fundamental shift in the set of skills required in
banking. To meet increased competition and manage risks, the demand for
specialized banking functions, using IT as a competitive tool is set to go up.
Special skills in retail banking, treasury, risk management, foreign exchange,
development banking, etc., will need to be carefully nurtured and built.
Thus, the twin pillars of the banking sector i.e. human resources and IT will
have to be strengthened.
(v) Greater customer orientation : In today’s competitive
environment, banks will have to strive to attract and retain customers by
introducing innovative products, enhancing the quality of customer service
and marketing a variety of products through diverse channels targeted at
specific customer groups.
(vi) Corporate governance : Besides using their strengths and
strategic initiatives for creating shareholder value, banks have to be
conscious of their responsibilities towards corporate governance. Following
financial liberalisation, as the ownership of banks gets broadbased, the
importance of institutional and individual shareholders will increase. In such
a scenario, banks will need to put in place a code for corporate governance
for benefiting all stakeholders of a corporate entity.
(vii) International standards : Introducing internationally
followed best practices and observing universally acceptable standards and
codes is necessary for strengthening the domestic financial architecture. This
includes best practices in the area of corporate governance along with full
transparency in disclosures. In today’s globalised world,focusing on the
observance of standards will help smooth integration with world financial
markets.
Technology in Banking Sector
Technology is having a major impact on the banking industry. For example,
many routine bank services that once required a teller, such as making a
withdrawal or deposit, are now available through ATMs that allow people to
access their accounts 24 hours a day. Also, direct deposit allows companies
and governments to electronically transfer payments into various accounts.
Further, debit cards, which may also used as ATM cards, instantaneously
deduct money from an account when the card is swiped across a machine at
a store’s cash register. Electronic banking by phone or Computer allows
customers to pay bills and transfer money from one account to another.
Through these channels, bank customers can also access information such as
account balances and statement history. Some banks have begun offering
online account aggregation, which makes available in one place detailed and
up-to date information on a customer’s accounts held at various institutions.
Advancements in technology have also led to improvements in the ways in
which banks process information. Use of check imaging, which allows
banks to store photographed checks on the computer , is one such example
that has been implemented by some banks. Other types of technology have
greatly impacted the lending side of banking. For example, the availability
and growing use of credit scoring software allows loans to be approved in
minutes, rather than days, making lending departments more efficient.
Other fundamental changes are occurring in the industry as banks diversify
their services to become more competitive. Many banks now offer their
customers financial planning and asset management services, as well as
brokerage and insurance services, often through a subsidiary or third party.
Others are beginning to provide investment banking services that help
companies and governments raise money through the issuance of stocks and
bonds, also usually through a subsidiary. As banks respond to deregulation
and as competition in this sector grows, the nature of the banking industry
will continue to undergo significant change.
COMPANY PROFILE
Profile:-
The Bank was founded in 1908 at Amritsar by eminent persons like Bhai
Saheb Veer Singh, Sunder Singh Majithia and S.Tarlochan Singh.At the
time of partition, all excepts Ludhiana and Amritsar branches were in
Pakistan.
2000 - The Bank has launched its bullion trading scheme on persistent
demand from North Indian traders, especailly in view of the Diwali festival
season.
- The Bank has been appointed as arranger and collecting banker for State
Bank of India's India Millennium Deposit scheme slated to open on October
21
2001 - NS Gujaral has been appointed as the chairman and managing
director of the Delhi-based Punjab & Sind Bank.
2003
-The bank has launched a special festival loan scheme for meeting the
expenditure for items such as purchase of consumer goods or furnishing of
house or shops
2004
-Mr. V K Chopra, CMD, Small Industries Development Bank of India,
appointed as CMD of Punjab & Sind Bank
-P&SB appoints new chairman R S Gujral
-Punjab and Sind Bank (PSB) and ICICI Bank on July 02 announced the
launch of co-branded credit card that will be available in three variants -
Gold, Silver and Blue credit card
-Punjab and Sind Bank ties up with Aviva Life
Punjab & Sind Bank, established in 1908, is headquartered at New Delhi.
Having more than 800 branches across the country, the bank has around
10,000 employees dedicated to the banking services and customer care. The
bank offers usual banking services along with innovative banking methods
including Internet and phone banking, international banking, merchant
banking, hire, purchase, leasing and credit cards.
Objective
The bank was founded by luminaries like Bhai Vir Singh, Sir Sunder Singh
Majitha and Sardar Tarlochan Singh in the holy city of Amritsar on the
principle of social commitment to help the weaker section of the society in
their economic endeavours to raise their standard of life.
Achievements and Activities
Punjab & Sind Bank is the first bank in Northern India to obtain ISO 9002
certification for its selected branches. Its Housing Finance Branch caters to
the credit need of the house aspirants. The bank has entered into agreements
for Non Life insurance business with M/s Bajaj Allianz General Insurance
Company and Life Insurance business arrangements with M/s Aviva Life
Insurance Company India Pvt. Ltd. Its customers can now avail insurance
related services under one roof.
NationalisationPunjab & Sind Bank was nationalized in 1980 along with six other banks by
the Government of India.
Products & Services
Deposits Savings AccountRecurring DepositFixed DepositsCurrent Accounts
Loans Priority Sector LoansHousing LoanHome Enhancement LoansPersonal LoanEducation LoanCar LoansBusiness Loans
Other Services NRI ServicesPunjab & Sind Bank-ICICI Bank Credit CardGold Card SchemesRBI Citizens' Charter including cash and depositsLocker FacilitiesRTGSNEFTPSB e-funds TransferTax PaymentE-bill PaymentsPSB- Aviva Allianz Insurance
MISSIONTo put in place the effective Risk Management and Internal Control
Systems.
To adopt and operationalise high-level technology standards.
To strive to achieve excellence in Customer Service.
To achieve the highest standards of transparency and accountability in the
conduct of banking business.
To adopt professional approach in effectively managing financial as well as
non-financial risks.
To maximize profitability and profits of the Bank with due compliance of
prudential guidelines.
To maximize competitive risk adjusted return on capital, through planned
reduction in the average cost of funds, increased yield on advances and
investments besides reduction in cost of operations.
The bank has collaborated with the leading credit card player in the
country to offer the privileges of state of art technology to its cardholders
with all the features to compete well in the card industry.
Our Bank has been making efforts to provide value added products &
Services to our esteemed clients. It is our quest to provide the very best to
our esteemed Customers. The launch of new Co-branded Credit card with
ICICI Bank is a step towards this mission.
VisionWe envision to emerge as a strong vibrant Bank through synchronization of
the human, financial and technological resources.
The bank also offers a wide range of general banking services to its
customers including debit cards, cash management, remittance services and collection services. Investment Rationale• PSB to establish its pan India presence by opening new branches throughout the country to increase its customer base and business. Expanding of branch network is expected to help the bank to improve CASA ratio going forward.• PSB plans to open specialised industrial finance branches andaims at expanding its credit portfolio, by growing its corporate& retail loan segment.• PSB has been able to reduce its net NPA ratio significantly from8.11% (which was highest amongst the public sector banks) in FY05 to 0.36% in FY10. Going ahead bank is likely to maintainNPA ratios around this level.• PSB will continue developing its technological capabilities toenhance its value offering to customers while optimizing its costs.From a total of 17 branches on the CBS platform, PSB seeks tobring around 500 branches on the CBS platform by Nov 2012enabling it to have incremental CASA growth and profitabilityin future.• PSB has maintained capital adequacy ratio (CAR) at 13.04% withthe tier-I capital at 7.9% and the tier-II capital at 5.1% as onSeptember 2010. The bank plans to meet its future capitaladequacy requirement through this issue.
Concern
• A major part of their branch network is concentrated in NorthIndia and thereby exposing them to regional risks.• PSB’s exposure to the real estate segment has witnessed substantialincrease in the last 3 fiscal years. Any significant downturn inthe real estate sector may lead to an increase in nonperformingloans.
Valuation
In terms of valuation, the stock is offered at 0.9x and 0.8x book value(post issue) at upper and lower band, respectively. Its peer groupvaluation is in the range of 0.8-1-4x. The bank’s growth plans toexpand its business, products & services to benefit bank in long term.Also, the strong Indian economic growth is likely to benefit theoverall banking industry which would inturn benefit the Punjab &Sind bank.
MANAGEMENT
SHRI A. BHATTACHARYA DIRECTOR (Ministry of Finance, Deptt. of Financial Services, New Delhi)
SHRI B. P. KANUNGO (RBI Nominee Director)
NON- OFFICIAL DIRECTORS
SHRI MATTA VENKATA SIVA PRASAD
SHRI KRISHAN MURARI GANGAWAT
SHRI HARI CHAND BAHADUR SINGH
SHRI A.K. SURANA (C.A. Category)
SHRI KARANPAL SINGH SEKHON
Punjab & Sind Bank IPO
he initial public offering (IPO) of State-owned Punjab & Sind Bank will be opening for subscription from December 13, reports CNBC-TV18. The bank will offer 4 crore equity shares through IPO.The issue comprises a net issue to the public of 3.8 crore equity shares and a reservation of 20 lakh equity shares for subscription by eligible employees. The issue shall constitute 17.93% of the post-issue share capital of the bank.
Its subscription will close on December 15 for qualified institutional investors (QIB) and on December 16 for other investors.The objective of the issue is to augment capital base to meet the future capital requirements arising out of the growth in assets due to the growth of the Indian economy.President of India, acting through the Ministry of Finance, Government of India, holds 100% stake in the bank, which will be reduced to 82.07% post issue.SBI Capital Markets Limited, Enam Securities Pvt Ltd and ICICI Securities Limited are the book running lead managers to the issue
GOLD CARD SCHEME FOR EXPORTERS
Exports play a crucial role in a developing economy like India which attaches considerable importance to export promotion. With a view to further simplify access of Bank credit to exporters especially small and medium exporters and make it borrower friendly in terms of procedure and credit terms, the Minister of Commerce and Industry had proposed issuance of a Gold Card to Credit Worthy Exporters with good track record for easy availability of export credit on best terms. Accordingly, a Gold Card Scheme has been worked out by RBI in consultation with select banks and exporters. The scheme envisages certain additional benefits based on the record of performance of exporters. The Gold Card holders would enjoy simpler and more efficient credit delivery mechanism in recognition of his good track record. The Gold Card Scheme has been introduced in our Bank, the details of which are as under:
1. The card offered by the bank will be known as "PSB EXPO GOLD CARD SCHEME
Fixation of Credit Limits :
1. Application for credit will be processed faster than other exporters. The time frame fixed for disposal of applications received for sanction of credit under the scheme is as follows:-
For disposal of fresh applications 25 days Renewal of limits 15 days Sanction of adhoc limits 07 days
2. Bank is already following a liberal approach in respect of export finance. Bank will allow 'In-principle' sanction of limits for three years with a provision for automatic renewal subject to fulfillment of terms and conditions of sanction. Sanctioning Authority will also introduce a clause in the terms & conditions of sanction that party will be submitting all the financial papers and other information required by the bank for the renewal and reviewal of account periodically.
3. PCFC requirements of the PSB Expo Gold Card holders will be met by giving them priority. Their FCDL requirements will also be given priority over non-export borrowers subject to availability of funds.
4. Export credit in foreign currency will be provided on priority basis at LIBOR + 0.75% p.a. subject to availability of funds. In case sufficient dollars are not available with the bank to lend to the exporter at a particular time, service charges at flat rate of 0.1% will be charged by the bank on the inter-bank foreign currency borrowings for the purpose, subject to availability of funds.
5. Bank will consider granting Term Loan in Foreign Currency in deserving cases out of their FCNR(B), RFC, etc. funds subject to availability of funds.
6. Sufficient powers have already been vested with the field functionaries for sanction of adhoc limits to meet urgent credit requirements of exporters. Urgent credit requirements of PSB Expo Gold Card holders will be met on priority basis. In the case of exporters of seasonal commodities, the peak and off-peak levels will be appropriately specified.
7. With a view to capture only those particulars which are relevant for sanctioning export credit, the Loan Application Form for export credit for Gold Card Holder devised by Indian Banks Association has been adopted.
8. In case of unanticipated export orders, norms for inventory may be relaxed, taking into account the size and nature of export order.
9. Since the bonafides of the Gold Card holder is already established based on credit worthiness and track record, the same will be given due consideration by the sanctioning authority in respect of security and collaterals while granting export credit under the PSB Expo Gold Card scheme.
Rate of Interest :
1. Rate of interest charged on Rupee Export Credit to the Gold Card Holders will be lower than the normal rate of interest charged by the bank as under:-
For exporters having credit rating 1 & 2 lower by 0.5% than the normalrate of interest charged by the bank
For exporters having credit rating 3 & 4 lower by 0.25% than the normalrate of interest charged by the bank
2. In respect of PSB Expo Gold Card holders, the concessive rate of interest on post-shipment rupee export credit applicable upto 90 days will be extended for a maximum period of 365 days.
Service Charges :
1. All PSB Expo Gold Card holders will be offered discount of 15% in service charges and fee structure for various services/ transactions subject to compliance of FEDAI guidelines.
2. PSB Expo Gold Card holders, in view of their credit worthiness will be considered for exemption from ECGC policy at the discretion of the bank.
Tenure :
1. The Gold Card will be issued for a period of 3 years and will be automatically renewed for a further period of 3 years, unless there are adverse features/irregularities in the account. In case of any misuse of the card or observance of any violation of the terms & conditions, the bank will have the right to recall the card any time.
2. The exporter's record of performance will be reviewed periodically with a view to pass on the benefit of better terms and conditions including rate of interest for better performance.
The following additional facilities/benefits will be allowed to the holders of PSB Expo Gold Card :-
i. Waiving of Annual Fee for the first year on the Credit Card and 50% discount for second year onwards subject to satisfactory utilisation of Credit Card.
ii. Better exchange rates & exchange rates on daily basis will be provided by the branches through E-Mail wherever feasible.
iii.Customer Education Programme will be conducted by the bank for them in which International developments and latest RBI guidelines will be discussed.
iv. Problems of the Gold Card Holders will be discussed and immediate remedial measures will be taken."
Till the Gold Card is finalised, Zonal Managers may issue letters to the exporters considered eligible by them under 'PSB Expo Gold Card' Scheme. They may submit their requirement of 'PSB Expo Gold Card' and Loan Application Form for 'PSB Expo Gold Card' holders to H.O. Stationery Deptt. and obtain the same from them.
Zonal Managers are advised to take keen interest in the scheme in order to popularise the same and implement in true spirit. Banners be also displayed at the concerned Branches.
One of the criteria of Eligibility for PSB Expo Gold Card was that exporters enjoying export credit limits (excluding FOBLC) of Rs.1 crores & above and annual export sales routed through our bank not less than Rs.5 crores during the preceding one calendar year/financial year will be eligible for PSB Expo Gold Card.
With a view to extend the scheme to all credit worthy exporters including those in Small and Medium Enterprises segment and to simplify credit access, it has been decided to waive the condition of export credit limits and turnover stipulated earlier.
About the Card:
The "PUNJAB & SIND BANK-ICICI BANK Credit Card" comes in three
variants : Blue, Silver and Gold card. The eligibility criteria in terms of
Annual Income of the applicant is as follows:
Eligibility Blue Card Silver Card Gold Card
Salaried Rs.60000/-p.a Rs.60000/-
p.a
Rs.120000/-p.a
Self Employed Rs.50000/-p.a Rs.50000/-
p.a
Rs.100000/-p.a
Business Focus
Punjab & Sind Bank's mission is to be a World-Class Indian Bank. The
objective is to build sound customer franchises across distinct businesses so
as to be the preferred provider of banking services for target retail and
wholesale customer segments, and to achieve healthy growth in profitability,
consistent with the bank's risk appetite. The bank is committed to maintain
the highest level of ethical standards, professional integrity, corporate
governance and regulatory compliance. P & S Bank's business philosophy is
based on four core values - Operational Excellence, Customer Focus,
Product Leadership and People.
CAPITAL STRUCTURE:-
The authorized capital of Punjab & Sind Bank is Rs.1.83 Billion.
The paid-up capital is Rs.1.6 billion.
The HDFC Group holds 14.00% of the bank's equity and about
13.50% of the equity is held by the ADS .
Net profit Rs. 437.18 Cr (Up by 14.34%).
Operating Profit Rs. 727.71 Cr. (up by 34.10%)
The shares are listed on the The Stock Exchange, Mumbai and the
National Stock Exchange.
Business per employee Rs. 6.56 Cr
Return on Assets 1.26 %
Capital Adequacy Ratio 11.88 %
Gross NPAs 161.04 Cr
Distribution Network:-
Punjab & Sind Bank is headquartered in New delhi. The Bank at present has
an enviable network of over 813 branches and 76 extension counters spread
over India and 400 in Punjab. All branches are linked on an online real-time
basis. Customers in over 120 locations are also serviced through Telephone
Banking. The Bank's expansion plans take into account the need to have a
presence in all major industrial and commercial centres where its corporate
customers are located as well as the need to build a strong retail customer
base for both deposits and loan products. Being a clearing/settlement bank to
various leading stock exchanges, the Bank has branches in the centres where
the NSE/BSE have a strong and active member base. As a part of
International banking it offers NRI services, swift branches, IBDs and gold
card scheme. The bank has launched the facility of online request for
education loan to make it easier for the customers. It has tied up with ICICI
bank for a co-branded credit card. It also has tie-up with Aviva Life
Insurance Company and Bajaj Allianz General Insurance Company. It has
attained ISO 9002 certification for its selected branches.
Management:-
Mr. V K Chopra took over as the bank's Chairman. Prior to this, Mr. Kapoor
was a Deputy Governor of the Reserve Bank of India.The Managing
Director, Mr V K Chopra has been a professional banker for over 25 years
and before joining Punjab & Sind Bank in 1994 was heading Citibank's
operations in Malaysia. The Bank's Board of Directors is composed of
eminent individuals with a wealth of experience in public policy,
administration, industry and commercial banking. Senior banking
professionals with substantial experience in India and abroad head various
businesses and functions and report to the Managing Director. Given the
professional expertise of the management team and the overall focus on
recruiting and retaining the best talent in the industry, the bank believes that
its people are a significant competitive strength.
Corporate Governance Rating :-
The bank was one of the first four companies, which subjected itself to a
Corporate Governance and Value Creation (GVC) rating by the rating
agency, The Credit Rating Information Services of India Limited (CRISIL).
The rating provides an independent assessment of an entity's current
performance and an expectation on its "balanced value creation and
corporate governance practices" in future. The bank has been assigned a
'CRISIL GVC Level 1' rating which indicates that the bank's capability with
respect to wealth creation for all its stakeholders while adopting sound
corporate governance practices is the highest.
Investment Rationale
Wide Distribution Network and diversification of products & servicesPSB has a pan India presence through 926 branches and 63 ATMs as on October 31, 2010. It has a large presence in northern India with 623 branches, which is believed to be rich in resources and offer great opportunity for resource mobilization. Out of these 920 branches it has 49 specialised branches including specialised agriculture branches, personal banking branches and MSME branches. PSB plans to expand its branch network which would result in increasing the customer base, CASA ratio and business. It intends to focus on the technology including the rollout of the core banking system and the launch of customer-centric and multi-channel solutions like internet banking, telephone banking and mobile banking, to support its network of branches. Thus, PSB within the periphery of banking business is venturing and offering newer products and services which would augment growth and aid in client acquisition.
• Strong asset quality & financial growth PSB has been able to increase its business operations significantly, while improving its asset quality. In fiscal 2005, PSB had net NPA ratio of 8.11% (highest amongst the public sector banks) has been reduced to 0.36% in FY10 (group average of the public sector banks at 0.91%). Also the bank is likely to maintain NPA ratios around this level. The bank has registered a CAGR of 21.1% in net total income, 35.6% in operating income and 15.1% in net profit over the period 2006-2010. During the last five fiscals, it has been able to achieve a CAGR of 36.24% in its net advances in spite of a reduction in net NPA ratio. Also,
it has registered strong RoA for fiscal 2010 at 1.06% and NIMs for fiscal 2010 was at 2.67%.
• Comfortable capital adequacy ratio , The bank’s capital adequacy ratio (CAR) as on September 2010 stood at 13.04% with the tierI capital at 7.98% and the tier-II capital at 5.06%. The bank plans to meet its future capital adequacy requirement through this issue. During FY08 the equity capital of the bank was restructured by converting an amount of INR 1.6 Bn into ‘Innovative Perpetual Debt Instrument (IPDI), INR 2 Bn into Perpetual Non-cumulative Preference Shares (PNCPS) and INR 2 Bn into Perpetual Cumulative Preference Shares (PCPS), while retaining INR 1.83 Bn as the equity capital. The primary purpose of capital restructuring was to enable the bank to raise fresh equity capital from the market.
• Accelerate growth in loans and advances to the retail and corporate sectors Advances growth has been robust over the years & in FY10 PSB recorded 32.6% to INR 326.39 Bn growth YoY. PSB proposes to strengthen its relationship with large corporate and public sector organizations by increasing funding to infrastructure sector. In order to expand corporate banking services, it has recently forayed into syndication of loans. PSBaims at expanding its credit portfolio by growing its corporate & retail loan segment. PSB also plans to open specialised industrial finance branches to focus on project appraisal, to maintain and enhance its franchise in the MSME.Continue to develop our technological capabilities PSB will continue developing its technological capabilities to enhance its value offering to customers while optimizing its costs. From a total of 17 branches on the CBS platform, PSB seeks to bring around 500 branches on the CBS platform by Nov 2012. This would enable PSB to have incremental CASA growth in future. The key objectives behind it is to build a cost-efficient distribution network to accelerate the development of its retail and rural franchise, enhancing cross selling & client segmenting capability by using analytical tools & efficient data storage & retrieval systems, improving credit risk and market risk Management.
Profit & Loss Statement INR mn
Y/E March FY09 FY10 H1FY11
Interest Income 32472 39342 23066Interest Expenses 22353 27502 15260Net Interest Income 10119 11839 7806Other Income 3835 3921 2163Operating Income 13954 15761 9969Operating Expenses 6673 7081 4844Operating Profit 7281 8680 5126Provisions and Contingencies 829 2118 1129Profit Before Tax 6452 6562 3997Provision for Tax 2108 1565 1233Profit After Tax 4344 5011 276
Balance Sheet INR mn
Y/E March FY09 FY10 H1FY11
Sources of Funds
Equity Capital 3831 3831 3831Reserves & Surplus 12341 17235 19990Net Worth 16172 21066 23821Deposits 346757 491551 529451Borrowings 36065 37011 20073Other Liabilities 8793 11369 10086Total Liabilities 407786 560996 583430
Application of Funds
Cash & Balance with RBI 19571 37883 41739Bal. with Banks/ Short Notice 8834 9671 3129Advances 246154 326391 357148Investments 126274 178868 172208Fixed Assets 509 527 563Other Assets 6445 7656 8644Total Assets 407786 560996 583430
CORPORATE GOVERNANCE:-
Punjab & sind Bank's Corporate Governance Policy has been adopted
keeping in mind the importance of attaining fairness for all stakeholders, as
well as achieving organizational efficiency. Punjab & Sind Bank recognizes
the importance of good corporate governance, which is generally accepted as
a key factor in attaining fairness for all stakeholders and achieving
organizational efficiency. This Corporate Governance Policy, therefore, is
established to provide a direction and framework for managing and
monitoring the bank in accordance with the principles of good corporate
governance.
WORK PROCESS IN PUNJAB & SIND BANK
In Punjab & Sind Bank, work process for corporate salary accounts is
divided in 4 stages.
MAPPING
PROFILING
DOCUMENTATION
CLOSING
In the first stage of this process which is MAPPING, we have to do
MAPPING and in this we have to collect data of our prospect customers.
It was like cold calling. We went to various area of the city to find our
target company. In this process we have to collect following information
about the company or prospect customer.
Name of the company.
Complete address of the company.
Name of the concerned person who looks after payroll of the
company.
His designation.
His contact number or visiting card.
Existing bank with which they are banking.
Total number of employees on the payroll of the company.
After this we have to report to the corporate sales manager to show him
data and after that we have to make a call to the concerned person to take
an appointment. And once appointment is fixed, we have to go with
senior sales officer or with corporate sales manager on the call.
Second step in this was profiling. In this we have to get some of
information from the corporate at the time of meeting. And according to
that we can offer him the best deal because before each and every offer,
criteria has been made by the bank and in which criteria that company is
coming we have to decide and according to that we use to offer them best
deal. In this we used to ask questions which are as follows…
Number of employees on the payroll of the company.
Last month net salary disbursement of the company (to decide
criteria in which they are coming)
Nature of business.
Name and numType of the company, where it is public limited,
private limited, solo ownership etc
Name of the concerned person, who looks after payroll of the
company.
Number of branches.
Third process starts when deal has been closed or finalized. Than we
could start documentation process as per the banking requirements.
Which included following documents of the company…
Memorandum of association.
Partnership deed.
Directors photo ID proof. (PAN card/ passport/ driving license/
voter ID)
Employees detail.
Current account detail.
And in the fourth stage which is closing, we have to start opening
salary accounts of each and every employees to disburse salary in
their accounts. For that matter sales officers use to go to the
employees of the company and get form fill and collect required
documentsof the directors.
BUISNESS CYCLE
A strategy can be described as a collection of activities that will enable the
organization to reach its objective. A cost reduction strategy may involve
staff redundancies and the development of more efficient supply chains as
well.
Marketing strategy is a cyclical process consisting of four main phases.
.
Research
Measurement Planning
Implementation
Research
Successful business relies on informed decision making. Managers with
access to information on the market, competitors and their own business will
be better placed to set goals and devise strategies, than those who are less
well informed.
Planning
After analyzing the business intelligence to identify the most important
internal and external factors affecting the organization, managers can begin
to formulate appropriate strategies for meeting their goals. Throughout the
planning process, managers should constantly consult with other heads of
department and with employees further down the line who will be
responsible for implementing the strategy activities.
Implementation
Strategy implementation involves the delivery of a number of inter-related
activities to an agreed standard and schedule. This is often referred to as
project management. Implementation is the most important of all the
processes as it ensures that the planning is not just in papers and has been
used to obtain results.
Measurement
Once implementation of the strategy is complete, it is important to assess the
degree to which it enabled the objective to be achieved. Without proper
measurement it will be difficult to accurately understand what worked and
what improvements might be needed for future strategies. After
measurement, if it is found that the planning has not been effective to
achieve the desired goal the research process is carried out again to find out
anomalies of the planning and forming new strategies. This completes the
strategy cycle.
Following are the banks which are taken into
Consideration For Analysis:-
PUBLIC SECTOR
BANKS
PRIVATE SECTOR
BANKS
FOREIGN BANKS
1.IDBI BANK
2.STATE BANK OF
INDIA
3.UNITED BANK
OF INDIA
4.BANK OF INDIA
1.AXIS BANK
2.BANK OF
RAJASHTAN
3.TAMILNAD
MERCANTILE
BANK
1. ABN –
AMRO Bank
2. HSBC
BANK
3. STANDARD
CHARTERED
4. CITI
5.VIJYA BANK
6.UNION BANK OF
INDIA
7.INDIAN
OVERSEAS
BANK
8.BANK OF
BARODA
9.ALLAHABAD
BANK
10. UNITED
COMMERCIAL
BANK(UCO
BANK)
11. DENA BANK
12. STATE
BANK OF
BIKANER &
JAIPUR
13. ORIENTED
BANK OF
COMMERCE
14. STATE
4.FEDERAL BANK
5.HDFC BANK
6.KOTAK
MAHINDRA
BANK
7.SOUTH INDIAN
BANK
8.YES BANK LTD.
9.ING VYSYA
BANK
10. CENTURION
BANK OF PUNJAB
11. DEVELOPME
NT CREDIT BANK
12. KARUR
VYASYA BANK
13. ICICI BANK
LTD.
14. INDUSIND
BANK LTD.
N.A.BANK
BANK OF
SAURASHTRA
15. ANDHRA
BANK
16. SYNDICATE
BANK
17. PUNJAB
NATIONAL
BANK
18. STATE
BANK OF
HYDRABAD
19. CORPORATI
ON BANK
20. CENTRAL
BANK OF INDIA
21. CANARA
BANK
22. INDIAN
BANK
23. BANK OF
MAHARASHTRA
24. STATE
BANK OF
MYSORE
25. STATE
BANK OF
INDOREN
26. STATE
BANK OF
TRAVANCORE
27. PUNJAB &
SIND BANK
FINANCE DEPARTMENT
Introduction:
Finance department plays a major role in the working of any organization as
for all-purpose, money is required, which is arranged, procured and
disbursed as the finance department. They only make budget go for cost
control and maintain to optimum balance of cash for smooth operations. As
such the finance department in Punjab & Sind Bank is looking after only
some of the aspects insurance aspects of the unit.
Hierarchy of the finance department:
It is a line organization having a full-fledged department to manage the
finance budget, costing and other matter of this department. The Punjab &
Sind Bank has to manage two departments mainly i.e. works and Finance
Manager Finance
Assistant Manager Senior Officer Senior Officer Senior Officer (Cost) (Assets) (Cash)
Clerks
Fixed Asset Cost Employee salary Transportation
FINANCE DEPARTMENT
Account Section
The accounts section deals all the general accounting, employee payroll, billing
and matter related to taxation etc. The department activities are coordinate by
Assistant Manager-Accounts that report to Manager-Finance
Cost Section
The Cost Section does Accounting relating to preparation of Monthly Cost Data and Bill
Provisioning.Assistant Manager-Cost coordinates the departmental activities and reports to
Manager-Finance.
ACCOUNTS SECTION
Accounting Procedure
The accounting procedure of Punjab & Sind Bank is not a new
complicated one. They follow a standardized rule of making entries in
there declared free. books of accounts or posting or making their trial
balance, Punjab & Sind Bank make its Trial Balance in the monthly basis
transaction and rent it to the Head Office. Head Office prepares final
accounts for all units not individual unit.
Punjab & Sind Bank follows the following
procedure
Step1: The quotations are called for acquiring or procuring the particular
assets, liabilities etc.
Step2: After then estimate decide/fixed through CESS.
(CAPITAL EXPENDITURE SECTION SCHEME)
Step3: After then allocation of budget for different requirements.
Step4: Then order replace, R.M/Assets be procured, inspected by the
concerned department.
Step5: Then GR No. After quality check etc. is sent to finance department
where the cashier makes the payment.
Step6: The ledger department debits this in the books.
Step7: Finally at the wish of finance department assets is charged.
FINANCE MANAGER Finance Manager is totally responsible for all
activities to payment/receipts of cash and fund Management of the unit. His
decision on payment will be final as personal manual, account manual
directives laid by the organization. Under Finance Manager the financial
activities is disciplined in the manner as per smooth functionary of all
activities of payment such as salary and wages, payment to sundry creditors
which include all pretty payments to local contractors, reputations, workers
and officers of all grade in working unit.
In detail it can be said that under finance manager their will be
payment of salary and wages, allocation of various financial activities such
as disbursement of cash by cashier, the payment like contractors bill, local
bill, raw material bill, stores and spares payment of raw material and
packing material, traveling bills, outstation allowances. All the various
miscellaneous payments sanctioned are being made.
The financial activities are on summation of inputs information system
department (I.S.D.) provides various financial, copying outputs available on
daily report, weakly report and monthly reports. It also provides information
like cash payment, voucher, cash receipt voucher, and various types of bills
also. Various type inventory output summary of transaction bills of output
(local, contractor, raw material etc.) various type of finance ledgers of the
month and monthly trial balance.
Account staff to routs all payment in account department:-
To section the payment to staff, officer, mgt & to verify correction
FINANCIAL MANAGEMENT PREPARATION
Payroll of employee.
Accounting of sales.
Financial accounts.
Supply bills.
Material Accounting.
COST SECTION
The Cost Section is a branch of accounting and
has been developed due to limitations of financial accounting. Financial
accounting is primarily concerned with record keeping directed towards the
preparation of profit and loss account and balance sheet. It provides
information regarding the profit and loss that the business enterprise is
making and also its financial position on a particular date. The information
concerning the business enterprise is helpful to the management to control in
a general way the major function of business viz., finance, administration,
production and distribution but details regarding operating efficiency of
these divisions are lacking. Infect, the development in the field of cost
accounting is so quick and fields covered by it are expanding so much in
magnitude that it becomes difficult for the management to lay down
management policies, to guide the management decisions or evaluate
operating management performance with the information provided by
financial accounting.
SUMMARY OF
WORKING
CAPITAL
ANALYSIS
HIGHILIGHTS OF FINANCIAL PERFORMANCE of Punjab & Sind Bank
(Rs. In Crores)
PARTICULARS 2009 2010
1.TOTAL INCOME 1491.63 1544.47
2.TOTAL EXPENDITURE 245.29 317.54
3.OPERATING PROFIT 33.76 72.06
5.PROFIT AFTER INTREST BUT BEFORE DEPRICATION & TAX
75.33 112.12
6.DEPRECATION 10.95 13.98
7.PFOFIT BEFORE TAX 64,37 98.14
8.PROFIT AFTER TAX _______ 59.89
WORKING CAPITAL ANALYSIS CAN BE STUDIED UNDER THE FOLLOWING THREE HEADS:- RATIO ANALYSIS :- Under the ratio analysis It is urgent to find
out short term ratios that will effect working capital of every company
FUND FLOW ANALYSIS :- Under the fund flow analysis it is
urgent to find out changing in working capital and its operation and sources
and application of funds.
WORKING CAPITAL BUDGET :- It helps in forecasting the
short term requirement for every company.
WORKING CAPITAL
INTRODUCTION:- Working capital refers to that part of firms
capital which is required for financing short term or current Assets such as
cash, debtors, marketable security and inventories. Thus funds invested in
current assets keep revolving fast and are being constantly converted in cash
and this cash flows out again in exchange for other current assets. It is also
known as revolving or circulating capital or short term capital.
Working capital may be regarded as the life blood of business. Working
capital is of major importance to internal and external analysis because of its
close relationship with the current day to day operations of a business. Every
business needs funds for two purposes.
* Long term funds are required to create production facilities through
purchase of fixed assets
such as plants, machineries, lands, buildings & etc
* Short term funds are required for the purchase of raw materials, payment
of wages, and other day-to-day expenses.
It is other wise known as revolving or circulating capit.l
It is nothing but the difference between current assets and current
liabilities. i.e.
Working Capital = Current Asset – Current Liability.
Businesses use capital for construction, renovation, furniture, software,
equipment, or machinery. It is also commonly used to purchase inventory, or
to make payroll. Capital is also used often by businesses to put a down
payment down on a piece of commercial real estate. Working capital is
essential for any business to succeed. It is becoming increasingly important
to have access to more working capital when we need it.
Concept of working capital
Gross Working Capital = Total of Current Asset
Net Working Capital = Excess of Current Asset over Current Liability
Current Assets Current Liabilities
Cash in hand / at bank Bills payable Bills Receivable Sundry Creditors Sundry Debtors Outstanding Expenses Short term loans Accured expenses Investors/ stock Bank Over draft Temporary investment Prepaid expenses Accrued incomes
Working capital in terms of five components:
1. Cash and equivalents : - This most liquid form of working
capital requires constant supervision. A good cash budgeting and forecasting
system provides answers to key questions such as: Is the cash level adequate
to meet current expenses as they come due? What is the timing relationship
between cash inflow and outflow? When will peak cash needs occur? When
and how much bank borrowing will be needed to meet any cash shortfalls?
When will repayment be expected and will the cash flow cover it?
2. Accounts receivable: - Many businesses extend credit
their customers. If you do, is the amount of accounts receivable reasonable
relative to sales? How rapidly are receivables being collected? Which
customers are slow to pay and what should be done about them?
3. Inventory: - Inventory is often as much as 50 percent of a firm's
current assets, so naturally it requires continual scrutiny. Is the inventory
level reasonable compared with sales and the nature of your business?
What's the rate of inventory turnover compared with other companies in
your type of business?
4. Accounts payable:- Financing by suppliers is common in
small business; it is one of the major sources of funds for entrepreneurs. Is
the amount of money owed suppliers reasonable relative to what you
purchase? What is your firm's payment policy doing to enhance or detract
from your credit rating?
5. Accrued expenses and taxes payable: - These are obligations of your company at any given time and represent a
future outflow of cash.
Two different concepts of working capital are :-
Balance sheet or Traditional conceptOperating cycle concept.
Balance sheet or Traditional concept: - It shows
the position of the firm at certain point of time. It is calculated in the basis
of balance sheet prepared at a specific date. In this method there are two type
of working capital:-
Gross working capital
Net working capital
Gross working capital :- It refers to the firm’s investment in
current assets. The sum of the current assets is the working capital of the
business. The sum of the current assets is a quantitative aspect of working
capital. Which emphasizes more on quantity than its quality, but it fails to
reveal the true financial position of the firm because every increase in
current liabilities will decrease the gross working capital.
Net working capital: - It is the difference between current assets
and current liabilities or the excess of total current assets over total current
liabilities.
Working capital= current assets – current liabilities.
Net working capital: - It is also can defined as that part of a
firm’s current assets which is financed with long term funds. It may be either
positive or negative. When the current assets exceed the current liability, the
working capital is positive and vice versa.
Operating cycle concept :- The duration or time required to
complete the sequence of events right from purchase of raw material for
cash to the realization of sales in cash is called the
operating cycle or working capital cycle.
CASH
RAW MATER-IALS
DEBTO-RS
SALES
FINISH-ED
GOODS
WORK IN PROGR-ESS
Types of Working Capital:-
NET WORKING CAPITAL
ON THE BASIS OF B/S CONCEPT
ON THE BASIS OF TIME
GROSS WORKING CAPITAL
REGULAR WORKING CAPITAL
TEMPORARY WORKING CAPITAL
SEASONAL WORKING CAPITAL
SPECFIC WORKING CAPITAL
TYPES OF WORKING CAPITAL
SIGNIFICANCE OF WORKING CAPITAL: -
EASY LOAN FROM BANKS
INCREASE EFFECIENCY
INCREASE INFIX ASSETS
INCREASE DEBTCAPACITY
DIVIDENDDISTRIBUTION
PAYMENT TO SUPPLIERS
SIGNIFICANCE OF WORKING CAPITAL
Factors requiring consideration while estimating working capital
The average credit period expected to be allowed by suppliers.
Total costs incurred on material, wages.
The length of time for which raw material are to remain in stores
before they are issued for production.
The length of the production cycle (or) work in process.
The length of sales cycle during which finished goods are to be
kept waiting for sales.
The average period of credit allowed to customers.
The amount of cash required to make advance payment.
Importance of Working Capital Ratios
Ratio analysis can be used by financial executives to check upon the
efficiency with which workingcapital is being used in the enterprise. The
following are the important ratios to measure the efficiency of working
capital. The following, easily calculated, ratios are important measures of
working capital utilization.
Ratios Formulae Result Interpretation
Stock turnover
(in days)
Average Stock *365/Cost of Goods
Sold
= x days On average, you turn over the value of your entire stock every x days. You may need to break this down into product groups for effective stock management. Obsolete stock, slow moving lines will extend overall stock turnover days. Faster production, fewer product lines, just in time ordering will reduce average days.
ReceivablesRatio(in days)
Debtors * 365/Sales
= x days It takes you on average x days to collect monies due to you. If your official credit terms are 45 day and it takes you 65 days. One or more large or slow debts can drag out the average days. Effective debtor management will minimize the days.
Payables Ratio(in days)
Creditors * 365/Cost of Sales (orPurchases)
= x days On average, you pay your suppliers every x days. If younegotiate better credit terms this will increase. If you pay earlier, say, to get a discount this will decline. If you simply defer paying your suppliers (without agreement) this will also increase - but your reputation, the quality of service and any flexibility provided by your suppliers may suffer.
Current Ratio Total CurrentAssets - Inventory)/Total Current
= x times Current Assets are assets that you can readily turn in to cash or will do so within 12 months in the course of business. Current
Liabilities Liabilities are amount you are due to pay within the coming 12 months. For example, 1.5 timesmeans that you should be able to lay your hands on $1.50 for every $1.00 you owe. Less than 1 times e.g. 0.75 means that you could have liquidity problems and be under pressure to generate sufficient cash to meet oncoming demands.
Quick Ratio (Total CurrentAssets - Inventory)/Total CurrentLiabilities
= x times Similar to the Current Ratio but takes account of the fact that it may take time to convert inventory into cash.
WorkingCapital Ratio
(Inventory +Receivables -Payables)/Sales
As %Sales
A high percentage means that working capital needs are high relative to your sales.
Statement showing change in working
capital for Punjab & Sind Bank
(Rs .AS ON in crore)
Particulars 2010 2009 Increase ( + ) Decrease
(- )
Current Assets
Investments 126274290 84726329 41547961
Cash & Bank 19576665 19550906 25759
Loan & advances 246153482 183433034 62720448
Total(A) 392004437 287710269
Current
liabilities
Reserves &
surplus
17572855 13502573 4070282
Provisions 18363147 10477571 7885576
Total (B) 35936002 23980144
(A-B) 356068435 263730125
↑ in workingcapital
92338310 92338310
TOTAL 356068435 356068435 104294168 104294168
Sources of Additional Working Capital
Sources of additional working capital include the following:
Existing cash reserves Profits (when you secure it as cash !) Payables (credit from suppliers) New equity or loans from shareholders Bank overdrafts or lines of credit Long-term loans
ANALYSIS OF VARIOUS COMPONENTS OF WORKING CAPITAL
INVENTORY ANALYSIS
Inventory is total amount of goods and materials content in a store of factory
at any given time.
Inventory means stock of three things :-
1. Raw materials
2. Semi finished goods.
3. Finished goods.
Position of Income in Punjab & Sind Bank
Limited (Rs..)
Particulars 31.03.10 31.03.09Commission,Exchange &
Brokerage
588357 519047
Profit on sale of
investments
1189038 175129
Profit on sale of
land,buildings & other
assets
716 1402
Profit on exchange
transaction
399142 300117
TOTAL 2177253 995695
SUNDRY DEBTORS ANALYSIS
Debtors or an account receivable is an important component of working
capital and fall under current assets. Debtors will arise only when credit
sales are made.
Position of Sundry Debtors in Pu njab & Sind
Bank
Particulars 2010 2009
Secured,considered
Goods
1370557 6624870
Unsecured,considere
d Goods
7350000 3800000
8720557 10424870
INTERPRETATION
In the table we see that there is continuous rise in the debtors of Punjab &
Sind Bank in the successive years. A simple logic is that debtors increase
only when sales increase and if sales increases it is good sign for growth. We
can see 21% and 17% growth in 08-09 and 09-10 respectively from previous
years. We can say that it is a good sign as well as negative also. Company
policy of debtors is very good but a risk of bad debts is always present in
high debtors. when sales is increasing with a great speed the profit also
increases. If company decreases the Debtors they can use the money in many
investment plans.
CASH AND BANK BALANCE ANALYSIS
Cash is called the most liquid asset and vital current assets, it is an important
component of working capital. In a narrow sense, cash includes notes, bank
draft, cheque etc while in a broader sense it includes near cash assets such as
marketable securities and time deposits with bank.
Position of Cash and Bank Balance in Punjab
& Sind Bank
( Rs. AS on)
Particulars 2010 2009
Cash Balance in
Hand
939122 1029890
Bank Balance-
With Scheduled
Banks
18631543 18521016
19570665 19550906
INTERPRETATION
If we analyze the above table we find that it follows a decreasing trend. In
the year 2010 it had maintained a huge amount of cash and bank balance
which has fallen hugely in the year 2009 but there is slight fall between the
year 2009 and 2010. Although company’s cash is decreasing but this is very
good sign for company because they are not holding the cash in hand
but using the cash for better projects. The analysis shows that the fix
deposits of company are rapidly fallen in last three years as 72% and 74% in
08-09 and 09-10 respectively from previous year. Company is utilizing the
fixed cash for exploding the projects that is good for growth,
LOANS AND ADVANCES ANALYSIS
Loans and Advances here refers to any to amount given to different parties,
company, employees for a specific period of time and in return they will be
liable to make timely repayment of that amount in addition to interest on that
loan.
Position of Other Loans & Advances in Punjab & Sind Bank
(Rs.AS on)
Particulars 2010 2009Bills Purchased & discounted
8113510 6491446
Cash creditors,overdrafts & loans repayable on demand
73199602 60533847
Term loans 164840370 116407741Total 246153482 183433034
INTERPRETATION
If we analyze the table we can see that it follows an increasing trend which
is a good sign for the company. We can see that from the year 2009 to 2010
it increased more than double.We can see that the increase of 145% and 55%
in 08-09 and 09-10 respectively from previous year. The increasing pattern
shows that company is giving advances for the expansion of plants and
machinery which is good sign for better production of cement and other
goods. Although company’s cash is blocked but this is good that company is
doing modernization of plants In time to compete with other competitors in
market.
CURRENT LIABILITIES ANALYSIS
Current liabilities are any liabilities that are incurred by the firm on a short
term basis or current liabilities that has to be paid by the firm with in one
year.
Position of Other Current Liabilities in Punjab & Sind
Bank
Year 2010 2009Current LiabilitiesInter-office adjustment
680981 33605
Interest accured 1370557 624870
Deffered tax liability
582611 28100
Total 2634149 686575
INTERPRETATION
If we analyze the above table then we can see that it follow an uneven trend.
The important component of current liabilities is sundry creditors and other
liabilities. In 08-09 it decreased by 7% and in 09-10 it increased by 25%. In
08-09 it was increased because of growth in other liabilities by 32%.This is
liability for company so this should be less. when company have minimum
liabilities it creates a better goodwill in market. High current liabilities
indicate that company is using credit facilities by creditors.
PROVISIONS ANALYSIS
Position of Other Provisions in Pu njab & sind Bank
(Rs. in crore)Year 2009-2010 2008-2009Provision for Non Performing Advances
64.46 69.97
Provision for Non Performing Investments
-1.63 -4.48
Provision for Depreciation in the value of Investments
-0.16 3.30
Provision for Standard Asset
11.95 30.87
Provision for Income Tax
92.56 121.10
Provision for Deferred Tax
55.45 -0.31
Provision for Fringe Benefit Tax
1.53 1.24
MAT Credit Entitlement
58.03 -58.03
Others 8.34 -2.76
Total 290.53 160.30
INTERPRETATION
From the above table we can see that provision shows an increasing trend
and the huge amount is being kept in these provisions. Though the profits of
the company are increased income tax is also increased which is good that
company is creating goodwill in market by paying income tax in time.
The income tax is increased by 588% and 101% in 08-09 and 09-10
respectively from previous year. Although company is paying more income
tax but also they are earning more. Other provisions are also for the benefit
of employees and public. This is good sign for Company growth.
Working Capital Ratios and its Interpretation
A Ratio is a simple arithmetical expression of the relationship of one number
to another. In simple language ratio is one number expressed in terms of
another and can be worked out by dividing one number into the others. A
Ratio is known as a symptom like blood pressure, the pulse rate or the
temperature of an individual.
Example=current assets/current liabilities
.
RATIO ANALYSIS
A Ratio analyses is one of the most powerful tools of financial analyses. it is
used as device to analyze and interpret the financial help of enterprise. Just
like a doctor examines his patient by recording his body temperature, blood
pressure etc before his conclusion regarding the illness and before giving
him treatment. With the help of ratio analyses one can measure the financial
condition of the firm and point out whether the condition is strong good or
poor. one can arrive at a decision of how the performance of a firm is
deteriorating and can find out short term financial position or liquidity
position and suggest what a company must do for improving its working
capital.
Business Ratios
Items 2009-2010 2008-2009
(i) Interest Income as a percentage to
average working funds
9.35% 8.67%
(ii) Non-Interest Income as a
percentage to average working
funds
1.17% 1.24%
(iii) Operating Profit as a percentage to
average working funds
2.09% 2.12%
(iv) Return on Assets 1.26% 1.49%
(v) Business [Deposits plus Advances]
per employee (Rs. in lacs)
655.58% 466.87%
(vi) Profit per employee (Rs. in lacs) 5.03% 4.24%
Position of RECEIVABLE RATIO in Punjab & Sind Bank
FORMULA
Receivable Ratio(In days) = DEBTORS/Sales *365
Year 2010 2009
Ratios 5.72 5.53
INTERPRETATION
Generally a low debtors turnover ratio implies that it considered congenial
for the business as it implies better cash flow. The ratio indicates the time at
which the debts are collected on an verage during the year. Needless to say
that a high Debtors Turnover Ratio implies a shorter collection period which
indicates prompt payment made by the customer,if we analyze the three year
data we can say that it holds a good position while receiving its money from
its debtors. The ratios are in an increasing trend, which implies that recovery
position good and company should maintain these positions.
Position of PAYABLE RATIO in Punjab &
Sind Bank
Formula
Payable Ratio = Creditors
Cost of Sales
Year 2010 2009
Payable ratios( in
days)
9.35 8.67
INTERPRETATION
Actually this ratio reveals the ability of the firm to avail the credit facility from
the suppliers throughout the year Generally creditors turnover ratio implies
favorable since the firm enjoys lengthy credit period Now if we analyze the
three years data we find that in the year 2010 ratio was very high which
means that its position of creditors that year was not good, but in the next two
years it is seen that it has followed a decreasing trend which is very good sign
for the company. So we can say it enjoys a very good credit facility from the
from the suppliers.
Position of CURRENT RATIO in Punjab & Sind Bank
Formula
Current Ratio = Total Current Assets Total Current Liabilities
Year 2010 2009
Current Ratio 10.9 11.9
INTERPRETATION
This ratio reflects the financial stability of the enterprise. The standard of the
normal ratio is 2:1 Now if we analyze the three years data it can be predicted
that it holds a stable position all through out period but it is seen that it holds
a low position than the standard one and the company is required to improve
its position.
Position of QUICK RATIO in Punjab & Sind Bank
FORMULA
Quick Ratio = Total Current assets - Inventories
Total current Liabilities
Year 2010 2009
Quick ratio 8.64 9.63
INTERPRETATION
It is the ratio between quick liquid assets and quick liabilities. The normal
value for such ratio is taken to be 1:1. It is used as an assessment tool for
testing the liquidity position of the firm. It indicates the relationship between
strictly liquid assets whose realizable value is almost certain on one hand
and strictly liquid liabilities on the other hand. Liquid assets comprise all
current assets minus stock. By analyzing the three years data it can be said
that its position was weak in the year 2008 but it improved significantly in
the next two years and was stable during that year.
FUND FLOW ANALYSIS
A fund flow analysis is a technical device used to study the sources from
which additional funds were derived and the use to which these sources were
put. It is an effective management tool to study changes in the working
capital of business enterprises between beginning and ending financial
statements dates. The fund flow analysis consists of:
Preparing schedule of change in working capital.
State of sources and application of funds.
FLOW OF FUNDS ?
CURRENT ASSETS NO CURRENT LIABILITIES
YES YES YES YES
NON-CURRENT ASSETS NON-CURRENT LIABILITIES
NO
STATEMENT OR SCHEDULE OF CHANGE IN WORKING CAPITAL:-
Working capital means the excess of current
assets over current liabilities. There are following four rules to kept in
mind while preparing schedule of change in working capital given as
under :-
An increase in current assets increases working capital.
A decrease in current assets decreases working capital.
An increase in current liabilities decreases working capital.
A decrease in current liabilities increases working capital.
Cash Flow Statement for the year ended 31st
March, 2009
A. CASH FLOW FROM OPERATING ACTIVITIES
2009-2010 2008-2009
Net Profit/ (Loss) as per Profit & Loss Account
4371781 382358`
Adjustments for:Provisions & Contingencies 2905356 1603007
Depreciation (Net) 106315 71948
Profit on sale of assets -716 -1402
Interest on subordinated debts 531111 257485
Staff Welfare Fund -60000 -60000
Operating Profit before
working capital changes
7853847 5694619
Adjustments for:
Increase / (Decrease) in Deposits 98442463 56126524
Increase / (Decrease) in
Borrowings
-4652416 27716420
Increase / (Decrease) in Other
Liabilities
2543571 -28629
(Increase) / Decrease in
Investments
-41520092 -17824399
(Increase) / Decrease in
Advances
-63375041 -66778284
(Increase) / Decrease in Other
Assets
-3090613 -558997
Cash Flow from Operating Activities (A)
-3798281 3347254
B. CASH FLOW FROM
INVESTING ACTIVITIES
Increase in Fixed Assets -215810 -118811
Profit on sale of assets 716 1402
Cash Flow from Investing
Activities (B)
-215094 -117409
C. CASH FLOW FROM
FINANCING ACTIVITIES
Issue of Subordinated Bonds 4000000 1000000
Redemption of Subordinated
Bonds
-450000 -1050000
Interest on Subordinated Bonds -531111 -257485
Cash Flow from Financing
Activities (C )
3018889 -307485
Cash from Operating Activities -3798281 3347254
Cash from Investing Activities -215094 -117409
Cash from Financing Activities 3018889 -307485
Increase in Cash & Cash
Equivalens
-994486 2922360
Cash and Cash equivalents at the
beginning of the year
293398873 26476513
Cash and Cash equivalents at the
end of the year
28404387 29398873
INTERPRETATION:-
Statement of changes in working capital is prepared to show the changes in the working capital between the two balance sheet dates. The difference is recorded for each individual current assets & current liabilities. If we talk about current assets like cash & bank balances, sundry debtors, inventory and other current assets have left positive effect on working capital except only prepaid expenses. On the other hand all current liabilities have shown increase in balances with comparing from the previous balances.
Asset Quality
Non-Performing Assets
(Rs. In crores)
ITEMS 2009-2010 2008-2009
(i) Net NPAs to Net Advances 0.32 0.37
(ii) Movement of Gross NPA
(a) Opening Balance 135.53 290.84
(b) Additions during the year 141.87 105.84
(c) Reductions during the year 116.36 261.15
(d) Closing balance 161.04 135.53
(iii) Movement of Net
NPAs
(a) Opening Balance 66.97 77.04
(b) Additions during the year 77.35 64.66
(c) Reductions during the year 66.29 74.73
(d) Closing balance 78.03 66.97
(iv) Movement of provisions for NPAs
(a) Opening Balance 65.71 210.55
(b) b) Add: provisions made
during the year
85.72 77.71
( c) Less: write off, write back
of excess provisions
72.48 222.55
(d) Closing balance 78.95 65.71
Investments
(Rupees in crore)
Items 2008-2009 2007-2008
Value of Investments
(i) Gross Value of Investments
(a) In India 12656.43 8524.92
(b) Outside India Nil Nil
(ii) Provisions for Depreciation
(a) In India 29.00 51.29
(b) Outside India Nil Nil
(iii) Net Value of Investments
(a) In India 12627.43 8473.63
(b) Outside India Nil Nil
OBJECTIVES OF THE STUDY
SCOPE AND OBJECTIVE
Every project has a scope which defines the areas of research
and the parameters that need to be studied. The scope also tells us the
purpose of the project. Branding is an important issue in the strategy
formation process. Poor firms ignore their competitors; average firms copy
their competitors; winning firms lead their competitors-Philip Kotler
The above quote from the marketing guru aptly sums up the
importance of the study of competition in the present world. The various
steps involved in it are mentioned below.
1. Identifying competitors.
2. Analyzing competitors strategies, objectives, strength and weakness.
3. Designing the competitive intelligence system
Collecting the data
Evaluating and analyzing the data
· Disseminating information and responding.
Designing competitive strategies interpreting with data.
OBJECTIVE
The objective of the project is to carry out a market research for
the Punjab & Sind Bank Ltd. to evaluate the market for working capital
management and to study the various parameters.
The main objectives are discussed below.
1) To analyze the feedback given by corporate.
2) To analyze the parameters considered for the sale of these product.
3) To get a better understanding of the customers wants, needs and desires.
4) To carry out a benefit deficiency analysis (BDA) to find out what
customers want from Punjab & Sind Bank and what they get from PSB.
5) To understand the various stages that goes into the making of a loyal
customer.
6) To do a comb analysis to find the opinion of customers about different
products of competitor.
7) Finally to formulate a strategy for the Punjab & Sind Bank based on the
above findings.
Management objective:
1) To identify useful insights for the conduct of similar market research at
other Branches of the company
2) To generate initial response of corporate about the products to improve
the product parameters studied.
RESEARCH METHODOLOGYResearch is the process of Systematic and in depth study or research for any
particular topic, subject or area of investigation backed by collection,
compilation, Presentation, and interpretation of relevant details or data. It is
a careful research or enquiry into any Subject, which is an endeavor to
discover or find out valuable fact, which would be useful for further
application or utilization .Research is carried out by different methodologies,
which have their own pros and cons. Research methodology is a way to
solve research by studying and solving a research problem along with the
logic behind it. Thus when we talk of research methodology we not only talk
of the research method but also consider the logic behind the method used in
context of research study and explain why we are using a particular method
or techniques so that research result are capable of being evaluated.
DATA COLLECTION
The Sources of Data Collection are of two types:-
Primary Data:-
Primary data is that which are collected “afresh” and is supposed to
be original in Character. Primary data is gathered in such a way so that need
of the researcher can be fulfilled .On the basis of primary data researcher
withdraw some important conclusion and gives suggestion according.
.
Secondary Data:-
Secondary Data is that data, which is, collected Prior to the Present Study
work. Any data that is available prior to the commencement of the research
Project is called Secondary data and therefore Secondary is also called as
Historical data.
I have collected my secondary data from various broachers of the
banks, Printed Annual Report books and website like psbindia.com,
google.com etc.
-
RESEARCH METHODOLOGY AND INFORMATION
ANALYSIS:-
Marketing research is the systematic and objective identification, collection,
analysis dissemination and use of information for the purpose of improving
decision making related to the identification and solution of problems and
opportunities in marketing. Each phase of this process is important. We
define or identify the marketing research problem or opportunity and then
determine what information is needed to investigate it. Because every
marketing opportunity translates into a research problem to be investigated
in terms of “problem” and “opportunity”. Next, the various sources of
information are identified and a range of data collection methods, varying in
report that allows the information to be used for the purpose of management
decision making. The main issue being discussed here is the emerging trends
of corporate salary account business. For this purpose data was collected
using both the primary and secondary sources. The secondary data was
collected from the various product catalogues and internet while the primary
data was collected from the field from builders, architects, dealers and
customers. Information was collected by using a carefully prepared
questionnaire which was designed keeping in mind all the aspects of the
issue. The questionnaire was used to find out the following information:
To get personal as well as the company’s detail.
To get information about the employees like how many employees are
working on the payroll of the company.
To know that how they are paying salary to there employees.
With which bank they are banking and why?
Are they aware of corporate salary accounts?
What is the level of their satisfaction with the current salary account?
What kind of services they expect from the bank?
How far their expectations are met?
The degree of loyalty of the customer towards their bank.
A separate schedule was designed for the corporate to carry out project
mapping in order to find out the prospect of the salary accounts.
The following information was obtained from them:
Name and number of the directors.
Type of the company, where it is public limited, privet limited, solo
ownership etc.
Name of the concerned person, who looks after payroll of the
company.
The number of branches.
The number of employees on the payroll of the company.
The name of current bank with which they are banking.
Reasons for choosing that bank.
Last month net salary disbursement to find out average salary per
employee.
Conducting an experiment or organizing a survey and doing research has
become the part of life in modern times. Research methodology refers to the
various sequential steps to be adopted by a researcher in studying a problem
with certain object/objects in view.
The research was carried out in various phases. The first few phases were
used to collect information. Based on this information, a hypothesis was
assumed that with the use of appropriate strategy in customer service and
use of proper elements of marketing mix the sales of salary accounts can be
increased to garner a bigger pie of the market share. The final few phases
were used to analyze the information so collected from various quarters.
The research process carried out in various phases is discussed below:-
Phase I. Understanding the company and its products. The various
parameters considered in the sale of these salary accounts. Getting
knowledge about the competitors in the area and knowing about the various
promotion and technique of selling.
Phase II. This phase include visits to various companies to collect relevant
data. The primary data was collected through Questionnaire and interviews
with corporate. This data was further extended through dialogues with
company officials. The secondary data was collected through websites,
company files and brochures and other documents of past and present.
Phase III. In this phase the data so collected is analyzed using various
statistical and market research tools to draw inference for the purpose of
decision making. The analysis consists of product mapping, project
mapping, competitor analysis, new opportunities, developing a brand equity
etc.
Phase IV. In this phase actual reporting of the findings and analysis will be
prepared and submitted the same to the company.
Sample Size
The customer survey has been done in the Shri Hargobind Pur city. And
sample size for this survey was 75. Data are correlated from different areas
of Janakpuri,Delhi, which are reported by names.
.
RESULTS, ANALYSIS AND DISCUSSIONS
The basic purpose of the study conducted was to find the emerging trends in
the Corporate salary market and based on those trends a formulating strategy
for the Corporate salary accounts segment. Data was collected based on the
above aim in mind, regarding the purpose of the salary accounts in the
company and the various parameters on the basis of which these salary
accounts are evaluated etc. According to survey, ICICI Bank is largest share
holder in this segment. Whereas ICICI Bank, Citi Bank are the banks which
don’t take much time to do it. It is also fact that HDFC Bank are having
strong customer base and tie up with most of the Big companies of India
including TCS, Wipro, TATA Motors, Reliance communications, EXL,
Bharti Airtel, Loreal, Idea cellular and many others.. Customer satisfaction
level is also high as compare to other banks.
The above figure shows that corporate salary accounts market in banking
industry is mainly captured by ICICI Bank. Whereas HDFC Bank is second
38%
31%
16%
9%
6%
Market share captured by major players
ICICI
HDFC
Axis
SBI
OTHERS
large player in this segment. And Axis Bank and SBI are doing well as
compare to others.
9%
21%
45%
5%
10%
10%
Sector wise distribution of customers
Telecom
Manufacturing
IT
Construction
Auto
Other
The above figure shows that IT sector is one who holds major market share
in this segment. Thus the company should have mainly focus on this
segment as well as the manufacturing segment in the market.
WHY PEPOLE ARE NOT SATISFIED?
In the following diagram, we can see that 72% people are satisfied by the
existing banks like ICICI, AXIS, PNB and other cooperative banks.
Dissatisfaction is 12% and closing of the account is 3% and other reasons
are 10%. In KAM, we found that existing clients did not want to change
there bank because their bank are giving them customized services and
changing the bank takes long time.
LIMITATIONS:-
The project is based on certain factors which also have their own
shortcomings. These factors need to be looked into. Since the report
proposes to study the Financial institution in Punjab & Sind Bank there
may be certain factors which limit the scope of the project. These are
discussed below.
Non serious attitude of the customer.
We cannot force corporate to tell why they are using our competitors
product, there can be various reasons like they have taken loan from
those bank, or near by the company, etc.
This product is valuable and for long term with no charges. So we can
not force each and every company to get it with Punjab & Sind Bank
without knowing about the reputation of the company.
This research is only limited to Gurdaspur city and near by area only.
Some time some of the people can give wrong or incomplete information
so that to find out actual result we can not fully believe on the
questionnaire.
OBSERVATIONS
RECOMMENDATIONS:-
To work on this project I have find out some of the points where Salary
managers should think. And by which they can increase customer base as
well as they can give better service to the customers. They are as follows….
(1) Local toll free customer care numbers should be there to solve the
queries and problems as well as for new inquiry of the customer for
corporate salary accounts.
(2) Informative advertising should be started because lots of new entrants
and traditional business houses are not aware about corporate salary
accounts so that they can come to know about it.
(3) Necessity to decrease processing time because Punjab & Sind Bank
takes too much time for its process as compared to its competitors and in
present scenario customer wants less processing time and less
documentations to make banking easy. So it is very important to decrease
processing time.
4) Weekly feedback to each and every sales officer and daily dual
reporting system can increase work efficiency. Sometimes sales people don’t
do work properly and they don’t achieve targets. Some of the sales people
do better job and they deserve appreciation. So for that matter, timely
feedback can play important role to enhance the sales and work efficiency of
the sales team.
(5) There is a need to make documentation process more flexible because
Punjab & Snid Bank wants 4 Photo identities (Driving license, Passport,
Voter ID, PAN card) as a documentary proof of the employee to open his
salary account and if person is not carrying any one of the above then it
becomes difficult to open his salary account because bank cannot accept
other documents due to rules even if the company is ready to give in writing
that a particular person is working with us.
(6) Necessary to motivate team to improve there performance. This is
corporate sales, which is tough job. Some time team members become
frustrated due to work pressure and high targets. So to get best from the
team, salary manager should use various managerial techniques to reduce
pressure and to create good work environment.
(7) After tie up with any company, service should be even better so that
customer base can increase and percentage of unsatisfied customer can be
reduced.
(8) Ability to solve the query and difficulties of the customer is essential
aspect of the business. For this matter sales team should be properly train
and all the formalities they must know, otherwise approach to corporate
many times is not possible and creates bad impression about the bank.
Training programs for sales executive should be conducted every month.
APPENDIXQUESTIONNAIRE
Date:-
…………………..
Personal Detail:-
Name : - …………………………………………………
Designation : - …………………………………………………
Sex : - ( ) Male ( ) Female
Name of the Bank……………………………………….
Contact nos. : - (O.)…………………., (R.)…………………..,
(M.)…………………………………
E-mail ID : - ……………………………………….
1) What is the Minimum Balance For Opening an Corporate Salary Account with Your Bank?
W ithout Cheque- B ook :-
a) 0 to 100 Balance b) 100 to 300 Balance
c) 300 to 500 Balance d)500 to 100 Balance
W ith Cheque- B ook :-
a)0 to 100 Balance b)100 to 300 Balance
c) 300 to 500 Balance d) 500 to 100 Balance
2) If a Customer Open an account With Your Bank then how many Cheque Leafs are provided to them?
a)10 Cheque Leafs. b) 15 Cheque Leafs.
c)) 20 Cheque Leafs. d) 25 Cheque Leafs.
3) What is the Minimum Penalty charges For non- Maintaining the Corporate Salary Account in your Bank per transaction?
a)Rs.0-50/- b)Rs.50-100/- c)Rs.100-200/- d)Rs.200-300/-
4 ) Is Your Bank Provide ATM Debit Card or Credit Card Facility to Customers For accessing their accounts?
a)Yes b) No
5) Does Your bank have Anywhere Cash Deposit Facility to Customers?
a) Yes b) No
7) Is Your Bank having DD (Demand Draft) Facility?
a)Yes b) No
8) Is Your Bank Providing Cheque Payable at Par Facility to Customers? a)Yes b) No
9) Is Your bank Provide Fund Transfer Facility to Customers?
a)Yes b) No
10) What are the Annual ATM Debit Card Charges to your banks Customers?
a)Rs.0-50/- b)Rs.50-100/-
6) What is the ATM Maximum Cash Withdrawal Limit (Per Day) to Customers in your Bank?
a)Rs.0-5,000/-Per day b)Rs.5,000-10,000/-p/day c)Rs.10,000-25,000/- P/day d)Rs.25,000-50,000/- e)Rs.50,000-75,000/- Per day
c)Rs.100/- & above
11) Does Your Bank Offer loan Facilities to your Customers?
a) Yes b) No
12) Which type of loan Your banks Provide?
Personal Loan Yes No
Car Loan Yes No
Housing Loan Yes No Pension Loan Yes No
Education Loan Yes No
13) Is Your Bank Providing Statement Facility to the Customers to Know his Past Transaction Entries?
Yes No
14) What are the various ways to inform Your Customers about his Past Transaction Entries?
-By Email Yes No
-By Courier Yes No
-By Fax Yes No
-Handover Yes No
If any other than above please mention
15) Is Your Bank Provide Internet Banking Facility to Customers For accessing account from anywhere through internet connection?
a) Yes b) No
1116) Is Your Bank Provide Phone Banking Facility to Customers For Operating his account through Tele-Phone?
a)Yes b) No
17) Is Your Bank having Mobile banking Facility to Customers For Updating them With new Features and technology?
a)Yes b) No
18 Is Your bank Provide SMS Alert Facility to Customers For Knowing him about his daily transaction entries?
a)Yes b) No
19 Is your Bank giving Auto Sweep Facility to Customers?
a)Yes b) No
20) Does Your Bank Provide Multicity Cheque Book Facility to Customers?
a)Yes b) No
21) Is your bank Provide Overdraft Facility to Customers for Withdrawing Excess Money from Bank?
a) Yes b) No22) Are you satisfied with the services being offered to
you by your bank?
( a ) Yes ( b ) No
If not than why?
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BIBLIOGRAPHY
Websites:-
www.psbindia.com
www.google.com
www.moneycontrol.com
www.16anna.com
Annual Reports of Punjab & Sind Bank – 2008-2009
Financial Management – M.K. Sharma
Asst. Manager Finance – S. Tarlok Singh
