PHASE III This stage has presented numerous more items and offices in the keeping money segment in its changes measure. In 1991, under the chairmanship of M. Narasimham, an advisory group was set up by his name which worked for the progression of keeping money hones. The nation is overflowed with outside banks and their ATM stations. Endeavors are being put to give an attractive administration to clients. Telephone managing an account and net keeping money is presented. The whole framework turned out to be more advantageous and quick. Time is given more significance than cash. The money related arrangement of India has demonstrated a lot of versatility. It is shielded from any emergency activated by any outer macroeconomics stun as other East Asian Countries endured. This is all because of an adaptable swapping scale administration, the outside stores are high, the capital record isn't yet completely convertible, and banks and their client s have restricted remote trade introduction. Change of the budgetary segment constitutes a vital segment of India's program towards monetary progression.
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The keeping money industry in India has experienced a radical change over the most recent two decades. At the point when the 90s saw the redoing of Banking industry and setting up of new age private area banks, the principal decade of the 21st century will continue somewhat further. Presently the managing an account has turned out to be excessively open and aggressive. The fundamental concentration and heading has transformed from a level of whatever business accessible to get everything conceivable. Indeed, even the stream of business development has transformed from Customer's entryway bank to Banker's clients' doorstep. Prior, a typical man was figuring whether he can open a financial balance and now consistently one finds a deals/showcasing learner of some private bank moving toward you (a major client) with host of offers and asking for you to be their client. Prior, no investor effortlessly consented to nurture a little client all the more so a little borrower. Presently every bank brags of being a retail bank. Today retail credits are sold and advertised like some other item. Everything is presently being sold under the umbrella of saving money.
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FUTURE OF BANKING IN INDIA A sound keeping money framework is basic for any economy endeavouring to accomplish great development but then stay stable in an undeniably worldwide business condition. The Indian saving money framework has seen a progression of changes previously, similar to deregulation of loan costs, weakening of government stake in PSBs, and expanded investment of private division banks. It has additionally experienced fast changes, mirroring various hidden improvements. This pattern has made new aggressive dangers and also new openings. The fate of saving money would be as far as reconciliation. This is now turning into a reality with new-age banks, for example, YES Bank. Topography will never again be an inhibitor. Innovation will turn out to be the differentiator temporarily however the dynamic condition will soon prompt its immersion and what will at last be the way to progress will be a superior relationship administration.
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1.2 COMPANY OVERVIEW
PUNJAB NATIONAL BANK The Punjab National Bank is one of the outstanding business and managing an account organizations in India. It is the second biggest government possessed and controlled business bank in the nation and offers specific arrangements and money related administrations in various segments. Around 37 million clients are served by the put money on a normal premise. The tweaked offices and administrations make it a put stock in name in the area of managing an account. Punjab National Bank (PNB or 'the gathering') offers a scope of administrations, for example, corporate and individual managing an account, mechanical back, rural fund, financing of exchange and worldwide saving money administrations. It likewise offers Visa and platinum cards; life and non-life coverage office administrations; gold coins; and resource administration administrations. The gathering works through a system of 6,760 branches with nearness in 9 nations. It is headquartered in New Delhi, India. The bank reported interest income of (Rupee) INR508,038.7 million for the fiscal year ended March 2016 (FY2016), an increase of 4.3% over FY2015. The net interest income after loan loss provision of the bank was INR25,999.4 million in FY2016, compared to net interest income after loan loss provision of INR86,670.4 million in FY2015. The net loss of the bank was INR36,897.7 million in FY2016, compared to a net profit of INR33,996 million in FY2015.
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1.2.1 HISTORY OF THE BANK
Punjab National Bank (PNB) was registered on May 19, 1894 under the India Companies Act with its office in Anarkali Bazaar in Lahore. The Bank is the second largest government-owned commercial bank in India with about 4,500 branches across 764 cities. It serves over 37million customers. The bank has been ranked 248thbiggest bank in the world by Bankers Almanac, London. PNB has a banking subsidiary in the UK, as well as branches in Hong Kong and Kabul, and representative offices in Almaty, Dubai, Oslo, and Shanghai.
„h During 1940s, PNB expanded its business with the number of branches increasing from 71 to 278 and deposits growing from INR100 million (approximately $2.1 million) to INR200 million (approximately $4.2 million). The group transferred its registered office from Lahore to Delhi in 1947. Due to the widespread riots then in Delhi, PNB had to close 92 offices in West Pakistan constituting 33% of the total number and having 40% of the total deposits.
„h In 1951, PNB took over the assets and liabilities of Bharat Bank Ltd., and became the second largest bank in the private sector.
„h In 1962, it amalgamated the Indo-Commercial Bank with it. During the two decade period starting from 1949 to 1969, PNB's deposits grew from INR430 million (approximately $9 million) to INR3,550 million (approximately $74.1 million), number of offices increased to 569 and advances increased from INR190 million (approximately $4 million) to INR2,430 million (approximately $50.7 million).PNB was nationalized in 1969.
„h During 1993, PNB merged with New Bank of India. PNB divested 20% of government ownership through an initial public offering to the public in 2002.
„h PNB joined with the US based Principal Financial Group in the asset management business in 2003. In terms of the arrangement approved, PNB Mutual Fund's business was transferred to the proposed joint venture. In the same year, the Kerala based private bank, Nedungadi Bank Ltd., was amalgamated with PNB. Later in that year, PNB entered into a memorandum of understanding (MOU) with New India Assurance Company Ltd., and acquired its Corporate Agency.
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„h PNB opened its branch office at Kabul, Afghanistan in 2004. In the same year, PNB opened its branch in Shanghai, China. In 2005, the group opened its representative office in Dubai. PNB established a subsidiary, Punjab National Bank International Ltd., in the UK in 2006. In order to meet capital requirements according to Basel II norms, PNB in 2005, issued a follow-on public offer (FPO) through the book building process and reduced Indian government's share to 57.8%.
„h In 2007, PNB partnered with Venture InfoTech Global (VIG) and American International Group (AIG) Consortium, to form a joint venture for credit card business in Bhutan. In the same year, PNB entered into a MOU with India Infrastructure Finance Company (IFCL), to finance infrastructure projects in the country.
„h Later in that year, the group launched a pilot project on financial inclusion at Neemrana in Alwar district of Rajasthan as part of a plan to cover 75 million people by 2010.
„h The Royal Monetary Authority of Bhutan approved to set up Druk PNB Bank Ltd., a joint venture bank between PNB and Bhutanese Promoters, in 2008.
„h PNB opened its representative office in Oslo, Norway in 2009. PNB opened its second branch in HongKong at Kowloon in the same year. Also in 2009, the group acquired 63.64% interest in Dana Bank, Kazakhstan. During the same year, PNB entered into an agreement with FIM Bank (Malta), Banca IFIS, Italy and Blend Financial Services Ltd., to set up a joint venture company for providing factoring, forfeiting and trade finance related business. In the same year, the group sold 81,25,000 shares of UTI AMC at INR200 each (approximately $4.2 each) and 6,500 shares of UTI Trustee at INR11.92 per share (approximately $0.3 per share) to M/s. T Rowe Price Global Investment Services Ltd. At the end of 2009, PNB sold 26% of its stake in PNB Housing Finance Ltd., (PNBHFL) to Destimoney Enterprises.
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„h In the following year, the group received approval from Reserve Bank of India to open a representative office in Sydney, Australia. Also in 2010, PNB opened the Dubai International Financial Centre (DFIC) branch and signed a memorandum of agreement with base Financial Group of Mauritius and Vijaya Bank for modifying their already existing joint ventures. In the same year, PNB announced that it received Reserve Bank of India's approval to set up a joint venture by name India Factoring & Finance Solutions Pvt. Ltd. Further in 2010, PNB acquired a 63.64% stake in JSC Dana Bank Kazakhstan.
„h The group opened a Zonal office in the heart of the central business district, becoming the fourth Indian bank to establish presence in Australia, also in 2011. During 2012, PNB announced plans to extend overseas and sold its stake to Life Insurance Company for INR15.9 billion (approximately $0.3 billion). The group acquired 30% stake in Metlife India Insurance Co. Ltd., in 2013.
„h In 2014, PNB sold its 41% stake in High Mark Credit Information Services Ltd. to CRIF S.P.A.
„h In 2011, PNB entered into an arrangement with; Weizmann Forex Ltd., Bombay (Principal Agent) for handling inward remittances under MTSS (Money Transfer Service Scheme) through Western Union; and BFC Forex & Financial Services Ltd., Thane (Maharashtra) for handling inward remittances under MTSS (Money Transfer Service Scheme) through the web based product EzRemit. Later in 2011, PNB acquired 33% stake in Metlife and partnered with Metlife for life insurance venture.
„h In February 2016, the group declared 904 firms as wilful defaulters with outstanding loan of INR108.7 billion ($0.98 billion) crore. In the same month, National Stock Exchange announced that PNB will be dropped from the National Stock Exchange's Nifty 50 index with effect from April 1, 2016. In December 2016, PNB partnered with Ola cabs to provide mobile ATMs in Delhi NCR, India.
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1.3 GROWTH OF THE PUNJAB NATIONAL BANK
Punjab National Bank was enrolled under the Indian Companies Act on 19thMay in the year 1894 and its first office was set up at Anarkali Bazaar in Lahore. From that point forward, the bank has turned into an extraordinary name in the field of managing an account and is particularly favored by the clients for the extensive variety of its administrations. Today, the bank has around 5000 branches in around 764 urban communities. Because of its offices and administrations of elevated requirements, Punjab National Bank has likewise been the beneficiary of various lofty honors. It has been balanced as the 248th greatest bank over the globe as per a current overview made by Bankers Almanac in London. The Economic Times has additionally recorded the bank as 38th among the head 500 organizations and the 9thamong the most put stock in brands in India. The aggregate resource estimation of the bank adds up to around US$60 billion. There is additionally a backup of the PNB in the United Kingdom. What's more the bank additionally has branches in some different urban communities like Kabul, Honk Kong, Oslo, Shanghai, Dubai, and Almaty.
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MAJOR PRODUCTS & SERVICES Punjab National Bank offers monetary arrangements and administrations in a variety of parts. Every one of these administrations that are offered keep pace with the changing business sector inclines to satisfy the requirements and inclinations of the clients. A portion of the notable segments on which the fundamental elements of the bank are based are Personal Banking, Corporate Banking, Agriculture back administrations, Industrial back administrations, Trade money related administrations, International managing an account administrations. The group¡¦s key services include the following:
„h Savings Fund Account – Total Freedom Salary Account, PNB Prudent
Sweep, PNB Vidyarthi SF Account, PNB Mitra SF
„h Account Current Account – PNB Vaibhav, PNB Gaurav, PNB Smart Roamer
„h Fixed Deposit Schemes – Spectrum Fixed Deposit Scheme, Anupam Account,Mahabachat Schemes, Multi Benefit Deposit
„h Scheme Credit Schemes – Flexible Housing Loan, Car Finanace, PersonalLoan, Credit Cards
„h Social Banking – Mahila Udyam Nidhi Scheme, Krishi Card, PNB FarmersWelfare Trust
„h Corporate Banking – Gold Card scheme for exporters, EXIM finance
„h Business Sector – PNB Karigar credit card, PNB Kushal Udhami, PNBPragati Udhami, PNB Vikas Udhami
Apart from these, the PNB also offers locker facilities, senior citizens schemes, PPFschemes and various E-services.
„h Digital banking
The Bank.s journey towards digitalization continues through constant innovations and upgradations of its existing products and services. The Bank strives to provide a hassle free and convenient banking services to more than 10 crore customers of the Bank.
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Some of the new initiatives taken by the bank are given as under:
„h One Statement per Customer: Monthly E-Statement of all accounts of a customer is being provided on the basis of Customer ID in place of account number.
„h SMS based facility: It facilitates new customers to give Debit Card request via SMS (DEBCARD<16 digits account number> to 5607040.
„h Auto issuance of Debit Cards in PMJDY accounts: Debit Cards are now being issued centrally in all PMJDY accounts and cards are being dispatched to customer.s registered address.
„h UPI in MBS: UPI services have been embedded in PNB m-Banking application for mobile banking users. It facilitates mobile banking users to use UPI channel for making payments in mobile banking application.
„h People Development
The Bank trusts that individuals improvement matters now like never before to drive productivity through development. The Bank took different activities in HR advancement by keeping representative resolve high through the incorporation of workers voice in different gatherings and basic leadership like "Lead the Parivartan" and giving learning and preparing through on-boarding and coaching program "PNB Navodaya". Switch Mentoring idea for Select Top Officials is being executed as a device of Decision emotionally supportive network and learning sharing. Capability Database was acquainted with catch the practical skill of senior authorities in different parts/profiles.
„h Priority Sector
Total PS Credit as on 31.12.2017 stood at Rs 154005 crore constituting 44.11 % to ANBC. Total advances to Agriculture & allied sector stood at Rs 71358 cr. Consisting 20.44% to ANBC. During Dec 2017 quarter Bank issued 56253 new Kissan Credit Cards (KCCs).PNB UTKARSH scheme launched for financing small food processing units.
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„h Financial Inclusion
Under the PM Jan Dhan Yojana, Bank opened 179.94 Lac accounts mobilizing Rs 3380.31 crore in these accounts. No of transactions through BC channel have increased to 293.62 Lac in Dec.17 against 232.49 lac in Dec. 16.