Chapter-1: Introduction

A. Profile of the Company

Punjab & Sind Bank (PSB) is a financial services provider based in India. The

bank provides a range of retail and commercial banking products and services. Its

portfolio of products and services includes savings accounts, current accounts,

recurring deposits, fixed deposits, housing loans, conveyance loans, consumer loans,

personal loans, education loans and other loans. Furthermore, the bank provides

internet banking, phone banking, international banking, merchant banking, hire

purchase, leasing and credit card services. It also provides locker facility and fund

transfer services. Through these products and services, PSB serves individuals and

corporate customers. It distributes its products and services through a network of

branches, ATMs in India. PSB is headquartered in New Delhi, India.

Punjab & Sind Bank is a Bank means accepting deposits from the customers for

lending to the needy and extending the other services as to issue of demand deposits.

It is a financial institution which deals with taking deposits, and making advances and

investments, distribution of mutual funds and pension and tax collection services.

The bank has various deposit products, such as current, savings and term deposits for

its customers. In retail banking, bank provides loan and advances for housing, trade,

1
 automobiles, consumer durables, education and personal loans. It provides

commercial banking products and services to corporate customers, including mid–

sized and small businesses and government entities.

It also engages in syndication of loans provided by other financial institutions and

other fee–based services such as cash management and remittance services.

In the priority sector, the banks offers direct financing to farmers for production, as

well as indirect financing for infrastructure development and credit to suppliers of

agricultural inputs. It also offers a wide range of general banking services to our

customers including ATM cards, cash management, remittance services and

collection.

VISIONS AND MISSIONS

Corporate Vision

To emerge as a techno savvy vibrant Public Sector Bank with Pan India presence
aspiring to meet expectations of all stake holders

Corporate Missions

 To provide excellent customer service through innovative products and

services for different segments of customers using state of the art technology.
 To dedicate ourselves wholeheartedly for “Sarva Jana Hitai Sarva Jana
Sukhai”

2
PRODUCT/ SERVICES PROFILE

As compared to other nationalised banks Punjab and Sind bank is providing same type of

products and services but different angles i.e the bank as different by services. The

various type of products and services provided by Punjab and Sind Bank are like as:

SERVICES

Real Time Gross Settlement

Saving Account (RTGS)
National Electronic Fund transfer
Fixed Deposit (NEFT)

Current Account Lockers

Recurring Deposit PSB E Fund Transfer

NRI Account Punjab and Sind Bank NRI Services

Cash Credit Online Banking

Mobile Banking

Size and Turnover of Organization

Punjab & Sind Bank is a government-owned bank (79.62%), with headquarters in

New Delhi. Of its 1466 branches spread throughout India, 623 branches are in Punjab

state. Its net profit is Rs. 121.35 crores and net NPA is 7.22% for the year ending

2018-19. The bank's operating profit for the year ending 2014-15 is Rs. 775.45 crores.

Total business of the bank was Rs. 1,51,511 crores for the year ending 2014-15 and

3
Business per employee is Rs. 15.95 crore. The net worth of the bank as on 31.03.15 is

Rs. 4812 crore.

The number ofemployes are 10,245 (March 2017)

Size in term of manpower

Category March’2016 March’2017

Officer’s 6632 6663

Clerks 2202 2241

Sub-Staff 569 496

Total 9403 9400

Organisation Structure

An organizational structure defines how activities such as task allocation,

coordination and supervision are directed toward the achievement

of organizational aims. Organisation structure of a Bank.

Chief Manager

Senior Manager

Manager

Probationary Officer

4
Clerk
Market Share & Position

(a) Market share of PSB is 54.25%on 14/07/2017 among all the nationalised bank.

(b) Position of PSB on 20th rank.

Present Leadership

(a) I have interacted to Bharti S Tipnis mam, Manish Negi sir, jasbir mam, Minakshi

mam, Raju sir and meenakshi yadav mam.

Bharti S Tipnis mam is a manager and other employees are officers & clerk.

Name of the firm : Punjab & Sind Bank

Address : H-32/6,Ground floor,sector 3 rohini delhi 110085

Contact no : 01127517653 , 18004198300

Email : d0912@psb.co.in

Website : www.psbindia.com

B. ORGANISATION CULTURE

Organizational culture is a system of shared assumptions, values, and beliefs,which

governs how people behave in organizations.These shared values have a strong

influence on the people in the organization and dictate how they dress, act, and

perform their jobs.

5
Task Orientation

(a) yes,the organisation has proper organisation structure and that is mentioned in
the bank.
1. manager
2.senior manager
3.officer
4.cashier
5.clerk

(b) Look into the problems of the customers and solve their problems.

(c) Every staff member know his/her position in the organisation like the cashier

work is the payments and takes deposits of cash and they do their work

properly, officers know what their work is like dealing with the customers .

Hence, it is concluded that it is moderately a task /achievement orientation.

People Orientation

The staff members trust one another and they interact with each one for solving

the problem.The branch level decisions are taken by the Branch Manager with

the member participate in decision making.The Branch manager delegate the

work to staff according to the post.The welfare trust of employees is

maintaining various welfare scheme for the staff

Team Orientation

The work is done on individual as well as team basis.Empowerment is more

than employee participation.

System/ Rule Orientation

6
 Policies laid down by the RBI are followed.Standard operating procedure is there
example:for doing RTGS job card is there, Finacle software is used .Branch
incharge control.No ambiguity because every has its own rules define.

Competition Orientation

Bank is duly considering risk in tev study project appraisal and at the time of

sanction.

Openness Orientation

Communication is both vertical and horizontal. The staff members can interact

with any member in the organisation without prior notice.Confidential information

are not share with every member.Restriction on information sharing.

C Environmental Analysis

a) Internal Environment Analysis of the firm/company

Strengths

(a) Active in various Government schemes facilitation.

(b) Has around 1000 branches across India and 400 branches in India.

(c) Bank organise various camps also.

(d) Ensuring customer satisfaction and ensuring high standard of customer service

(e) USP- commitment to help the weaker section of the society.

Weakness

a) Less penetration in the urban areas

7
 b) Inadequate advertising and branding as compared to other banks Deposits are
more than than loans.

c) Net Profit is less as compared to the other Banks.

d) Lack of awareness of products and services among all the staff members.

FUNCTIONAL ANALYSIS OF THE COMPANY

INTERNAL ENVIRONMENT ANALYSIS

Marketing Strategy

Alliance- they have alliance with satlujgramin bank in bhatinda.this bank help

the psb in promotion and help them to carry out their business with their

customer.

Technology Intensive

(a) As on 31.03.2017, all 1500 branches are on core banking solution with

RTGS/NEFT facility.

(b) The bank has installed 30 new atms during the year 2016-17.total number

of ATM’s of the bank as on 31.03.17 is 1253.

(c) More people involved, bank reached to the customer.

Cost of Capital

8
 (a) Cost of capital is decreasing than other bank because the net worth of the

bank stood at Rs.5046.39 crore as compared to Rs.5068.08crore as on

31.03.2016.

(b) the capital adequacy ratio of the bank is 11.05% as on 31.03.2017 against

the minimum stipulated requirement of 9.625%.

Leverage

PSB is profitable bank among all the commercial bank. psb conduct their

overall business with their profit and returns.

Profitability(net profit)

(a) Net profit is decreasing than other bank because the bank recorded a net

profit of Rs.201.08crore for the year 2016-17 as compared to that at

Rs.335.97crore during for the year2015-16.

(b) The return on asset stood at 0.20% as compared to that at 0.34% in the year

2015-16.

Organisational Culture and Climate

Strength of organisational culture and climate,opengateway,communication and

interaction in for every.they follow outocratic leadership to access to the

individual performance and manager of the bank provide wealthy &

motivational climate to the unemployees.

9
 MARKETING DEPARTMENT

Products/Services of the company.

(a) ATM card

(b) Debit card

(c) SMS banking

(d) Mobile banking

(e) Internet banking

(f) Schemes:

(i) Public provident fund(PPF)

(ii) Pension account

(iii) Senior citizen scheme

(iv) SukanayaSamriddhi scheme

(v) National pension scheme

Pricing

(a) Punjab and sind bank offers FD interest rates upto 7.00% per annum.

(b) Interest on deposits with Punjab and sind bank is typically compounded

Quarterly.

(c) Punjab and sind bank accepts deposits starting at Rs.1000 for various tenures.

Promotion

Gold Loan Scheme:

(i) For Productive Purpose (Agriculture):Rates as per policy of rates for agricultural loans.

10
 (ii) For Productive Purpose (Other than Agriculture): One Year MCLR (9.65%)

+3%=12.65%

(iii) For Non-Productive Purpose: One Year MCLR (9.65%) + 4% =13.65%

(iv) Staff (Non-productive purpose): One Year MCLR (9.65%) + 3% = 12.65%.

Loan Against Property (LAP).

One Year MCLR (9.65%) + 2.25% i.e. 11.90% at present.

Customer relationship management(CRM)

(a) Punjab and sind bank is provide good services like Loan facilities,ATM card,

Fixed deposit and RD.

(b)So,Customer relationship is good to bank employees because they do work

Completely and their supply is very fast.

FINANCIAL DEPARTMENT

11
 CAPITAL STRUCTURE
(a) Functional analysis of borrowings
Year March’2016 March’2017 Change(%)

Borrowings 2,839.01 2,958.44 4.21

Debt-Equity Ratio 0.04 0.05 0.01

Reserve & surplus 5,742.06 5,569.81 3.09

Table no.3:Analysis of Borrowings & Debt-Equity Ratio.

Debt-equity ratio = Total long term debts

Shareholder’s funds

Interpretation
Borrowings for the year ended 31st march 2017 is Rs.2,958.44 that is more than previous

year was Rs.2,839.01 this data shows that the borrowings are increased by 4.21%.Debt-

Equity for the year ended 31st march 2017 is 0.05% that is more than previous year was

0.04% this data show that the debt-equity ratio are increased by 0.01%.That means its

upward trend.

Note: Bank has no long term debt ratio because it is least profitable bank & carry out their

business with their even profit.

(b)Functional Analysis of Owner’s Funds

Year March’2016 March’2017 Change (%)

12
 Owner’s Fund 5,970.22 6,142.47 2.89%

Table no.4:Analysis of Owner’s Funds.

Interpretation

Owner’s funds for the year ended 31st march 2017 is Rs.61422.47 cr that is more than

Previous year was Rs.5970.22 cr.this data shows that the shareholder’sfunds are increased

by 2.89%.

COST OF CAPITAL

Dividend on Share

Year March’2017 March’2016 Change(%)

Equity dividend 0.00 16.50 -100.00

Table no.5: Dividend on Share.

Interpretation

Equity dividend for the year ended 31st march 2017 is nothing.In previous year ended 31st

march 2016 was 16.50%.this data shows downward trend.

Working Results

Year March’2017 March’2016 Change(%)

13
 Total business 1,51,511 1,42,588 6.26

Table no.6:Total Dividend of Business.

Interpretation

During the year ended 31.03.2017, total Business of the Bank recorded an increase of

6.26% at Rs.151511 crore as compared to Rs.142588 crore as on 31.03.2016.

PROFIT

Year March’2017 March’2016

Net Profit 201.08 335.97

Return on Assets(ROA) 0.20 0.34

Table no.7:Net Profit & ROA

Interpretation

The Bank recorded a Net Profit of Rs.201.08 crore for the year 31st march 2017 as

compared to that at Rs.335.97 crore during the for the year 31st march 2016.. The Return

on Assets (ROA) stood at 0.20% as compared to that at 0.34% in the year 2017-2016.

Return on Assets(ROA) = Net Income

Average Total Assets

Dividend Summary

For the year ending March 2017, Punjab & Sind Bank has declared an equity dividend of

14
16.50% amounting to Rs 1.65 per share. At the current share price of Rs 49.95 this results

in a dividend yield of 3.3%.

Leverage

Year Mar’17 Mar’16 Mar’15 Mar’14 Mar’13

EBIT 0.85 0.58 0.68 0.55 0.68

Table no.8:Leverage of EBIT.

Interpretation

EBIT for the year ended 31st march 2017 is 0.85% that is more than all previous year.In

31stmarch 2016, EBIT is 0.58% that is less than previous year.That means its downward

trend. In 31st march 2015, EBIT is 0.68% that is more than previous year.That means its

upward trend. In 31st march 2014, EBIT is 0.55% less than previous year was 0.68%. That

means its downward trend.

Year Mar’17 Mar’16 Mar’15 Mar’14 Mar’13

PBT 52.34 670.10 291.27 430.40 486.52

Table no.9: Leverage of PBT.

Interpretation

PBT for the year ended 31stmarch 2017 is Rs.52.34 that is decreased than previous year

15
was Rs.670.10.In 31st march 2016, PBT is Rs.670.10 that is increased than previous year

was Rs.291.27 that means its upward trend and In 31stmarch 2015, PBT is Rs.291.27 that

is decreased than previous year was Rs.430.40 that means its downward trend. In 31st

march 2014, PBT is Rs.430.40 that is increased than previous year was Rs.486.52 that

means downward trend.

Profit Estimation

Year Mar’17 Mar’16 Change(%)

Net Profit Ratio 20.91 9.81 11.1

Table no.10: Net profit ratio.

Net profit ratio = Net profit after tax *100

Net sales

Interpretation

Net profit ratios for the year ended 31st march 2017 is 20.91% more than previous year

was 9.81%.this data shows that net profit ratios are increased by 11.1%.

Year Mar’2017 Mar’2016 Mar’2015 Mar’2014 Mar’2013

16
 Operating 218.38 214.49 - - -

Profit Ratio

Revenue 8,750.97 9,222.97 9,017.30 8,423.76 7,57.28

Table no.11: Operating Profir Ratio & Revenue.

Operating profit ratio = Operating profit ratio *100

Net sales

Interpretation

Operating profit ratio for the year ended 31st march 2017 is 218.38% that is more than

previous year was 214.49%. that means its upward trend and Revenue for the year ended

31st march 2017 is Rs.8,750.97 that less than previous year was Rs.9,222.97 that means its

downward trend. In 31stmarch 2016, It is Rs. 9,222.97 that is more than previous year was

Rs.9,017.30. In 31st march 2015,It is Rs.9,017.30 that was more than previous year was

Rs.8,423.76 that means its upward trend.

Growth Trend Ratio:

17
 Year March’2017 March’2016

Core Operating Income -0.76 29.57

Growth

Operating Profit Growth -1.06 10.87

Net Profit Growth -40.15 176.87

BVPS Growth 3.97 5.33

Advances Growth -8.73 0.07

EPS Growth(%) -40.15 176.87

Table no.12:Growth Trend Ratio.

Profit Appropriation

Year Mar’2017 Mar’2016 Mar’2015 Mar’2014 Mar’2013

Earning Per 5.02 8.39 3.03 10.27 12.68

Share

Dividend 0.00 1.65 0.60 2.20 2.68

Per Share

Table no.13:EPS & DPS.

Interpretation

Earning per share for the year ended 31st march is 5.02% that is less than previous year

18
was 8.39%. In 31st march 2016, EPS is 8.39% that is more than previous year was 3.03%

that means upward trend. In 31st march 2015, EPS is 3.03% that is less than previous year

was 10.27% that means downward trned. In 31st march 2014, EPS is 10.27% that is less

than previous year was 12.68% that means downward trend.

Dividend per share for the year 31st march 2017 is nothing. In 31st march 2016 is 1.65%

that is more than previous year was 0.60% that means its upward trend. In 31st march

2015 is 0.60% that is less than previous year was 2.20% that means downward trend. In

31st march 2014 is 2.20% that is less than previous year was 2.68% that means its

downward trend.

Earning per share = Net profit available for equity shareholders

No.of equity shares

Dividend per share = Dividend amount

No. of equity shares

Year Mar’2017 Mar’2016 Mar’2015 Mar’2014 Mar’2013

Provision 2,002.37 2,522.22 2,394.28 2,462.66 2,692.25

Reserve 5,742.06 5,569.81 5,195.76 5,011.29 4,604.10

Table no.14:Provision &Reaserve.

Interpretation

Provision for the year ended 31st march 2017 is Rs.2,002.37 that is less than previous year

was Rs.2,522.22. In 31st march 2016, Provision is 2,522.22 that is more than previous

19
year was Rs.2,394.28 that means its upward trend. In 31st march 2015, Provision is

Rs,2,394.28 that is less than previous was Rs.2,462.66 that means its downward trend.

Reserve for the year ended 31st march 2017 is Rs.5,742.06 that is more than previous year

was Rs.5,569.81 that means its upward trend. In 31st march 2016, Reserve is Rs.5,569.81

that is more than previous year was Rs.5,195.76 that menas its upward trend. In 31st

march 2015, Reserve is Rs.5,195.76 that is more than previous year was Rs.5,011.29 that

means its upward trend.

Inventory Management

Year Mar’2017 Mar’2016 Mar’2015 Mar’2014 Mar’2013

Current 0.33 0.30 0.28 0.33 0.32

Ratio

Table no.15:Current Ratio.

Current Ratio = Current Assets

Current Liabilities

20
 current ratio
0.34
0.33
0.32
0.31
0.3
0.29
0.28
0.27
0.26
0.25
2017-2016 2016-2015 2015-2014 2014-2013 2013-2012

current ratio

Interpretation

Current ratio for the year ended 31st march 2017 is 0.33% that is more than previous year

was 0.30% that means its upward trend. In 31st march 2016, current ratio is 0.30%that is

more than previous year was 0.28% that means its upward trend. In 31 st march 2015,

current ratio is 0.28% that is less than previous year was 0.33% that means its downward

trend. In 31st march 2014, current ratio is 0.33% that is more than previous year was

0.32% that means its upward trend.

Year Mar’2017 Mar’2016 Mar’2015 Mar’2014 Mar’2013

Quick 3.46 3.11 3.52 2.72 3.60

Ratio

Table no.16: Quick Ratio.

21
Quick Ratio= Quick Ratio

Current Liabilities

Quick ratio
4

3.5

2.5

1.5

0.5

0
2017-2016 2016-2015 2015-2014 2014-2013 2013-2012

Quick ratio

Interpretation

Quick ratio for the year ended 31st march 2017 is 3.46%that is more than previous year

was 3.11% that means its upward trend.In 31st march 2016, Quick ratio is 3.11% that is

less than previous year was 3.52% that means its downward trend. In 31st march 2015,

Quick ratio is 3.52%that is more than previous year was 2.72%that means its upward

trend. In 31st march 2014, Quick ratio is 2.72%that is less than previous year was

3.60%that means its downward trend.

Cash Flow Analysis

Year March’2017 March’2016

22
 Cash from Operating Activities -19816172 24685500

Cash from Investing Activities -844884 -580162

Cash from Financing Activities -392244 -1649070

Table no.17:Cash Flow Analysis

Interpretation

Operating activities for the year ended 31st march 2017 is Rs.-19816172 cr that is less

than previous year was Rs.24685500 cr.that means its downward trend.Investing activities

for the year ended 31st march 2017 is Rs.-844884 cr that is less than previous year Rs.-

580162 cr.that means its downward trend. Financing activities for the year ended 31st

march 2017 is Rs.-392244 cr that is more than previous year was Rs.-1649070cr.that

means its upward trend.

HUMAN RESOURSES MANAGEMENT

Size and structure of human capital

23
 (a)Women in employement out of the total strength of 9400 as on 31st march

2017.

Category March’2016 March’2017

Officer’s 6,632 6,663

Clerks 2,202 2,241

Sub-Staff 569 496

Total 9,403 9,400

Table no.18:Total no. of employee

(b)All employees of working permanent.

(c)Sources of Recruitment:

(i) Personal data of candidates and data bank maintain by the HR

department .

(ii) Campus Recruitment.

(iii)Company’s own website.

(iv) Placement consultants.

(v) Advertisement in the newspaper like:TIME OF INDIA ,GUJRAT

SAMACHAR.

Recruitment process

Applicant Profile Shortlist Screenin Interview

g
Figure no.4:Recruitment process

Selection

Selectin is based on probation base, They are taking experience person for 6 month

probation and for fresher the probation period is 1 year. While the selction of the senior

level post,istakrn by head office at Mumbai.

24
Training System

Training to staff on MSME needs during 2015-2016

(a) No. of training programs is 16.

(b) No. of staff mambers trained is 286.

(c) Training structure:- The 1st training that a new PO receives is called the

oeientationprogram.It happens generally after 1 month of your posting.It depends

on the management to call you for the training.Then you will be called for 1 week

training at NIBSCOM,NOIDA or CRBT, Chandigarh. The people apart from NCR

will get accommodated in the NIBSCOM campus.I am uploading images for

NIBSCOM campus below.

Performance Appraisal and Recognition System

(a) An organisations goals can be achieve only when people put in their best

efforts.

(b) Performance appraisal may be understand as the assessment of an individual

performance in a systematic way.

(c) To appraise the performance of the employee they have developed a credit

system on the basis of the given target to the employee.

(d) After appraising the performance of the employee they put the grade of each

employee in the following grade criteria.

Compensation Management

(a) Remuneration is the compensation an employee receives in return for his/her

contribution to the organization. Remuneration occupies an important place in

25
 the life of an employee.

(b) At PSB, remuneration of an employee comprises – wages and salary,

incentives.

Wages and Salary

(a) A part from various incentives and benefits, the personnel are compensated

only terms of wages and salaries. A proper compensation in terms of this is

necessary for motivation employees for their continuousimproved

performance. For all this, it is required that wages and salaries are provided

well by organization.

(b) Wages and salary refers to the establishment and implementation of sound

policies and practices of employee’s compensation. A wage and salary is the

remuneration paid for the service of labor in production periodically to an

employee. The bank is in service industry so the salary is given on monthly

basis. They use to hire certain salesman on commission base and they are

provided their salaries on commission base. While other permanent staff are

being given monthly salaries. As PSB bank is reputed bank in market the pay

scale are as per the standard.

(c) Sales executives (coax) are being given salary of 6000 to 8000 per month.

While sales officer’s salary ranges from 15000 to 18000 per month. PSB bank

is also giving attractive incentives as per the target. The salary of branch

manager is around 35000 per month.

Incentive

In PSB, employees get incentives on the basis of the target given to each employee

and their area of work. They have developed the incentive structure for the employees

26
 on the basis of point system. All the employees get the incentive in the form cash

reward.

Employees benefit

The employees of PSB automatically become PSB bank salary account Holders with

special benefit and privileges and receive instant salary credit. The benefit include

international debit card, corporate card with individual liability (CCIL), access to

phone banking and internet banking, demat accounts, and host of other services to

complement their savings account. Here are some of the features of PSB Bank’s

salary account.

Facilities and employess welfare

(a) Many facilities provided of all employees like: canteen, newspaper and

restrooms etc.

(b) 120 maternity leave and 40 sick leave provided of all employees.

INTERNATIONAL BUSINESS DEPARTMENT

International Human Resources Management

27
Employment Abroad:A personabroad for employment can draw foreignrate up

to USD 100,000 on self-declaration basis from an Authorised dealer in india.

Emigration : A person going abroad on emigration can draw foreign exchange up

Up to USD 100,000 on self-declaration basis from an Authorised Dealer in India.

This amount is only to meet the incidental expenses in the country of emigration.

Medical Treatment Abroad: A person going abroad for medical treatment can as

up to USD 100,000 on self declaration basis.

Maintenance of Close Relatives: A person can remit up to USD 100,000 for

maintenance of close relatives on self declaration basis.

Liberalised Remittance scheme for resident individuals: Under Liberalised

Remittance Scheme of RBI, remittance by individual up to US Dollar 2,50,000

(increased from USD 1,25,000) per financial year is freely allowed for any

permissible current or capital account transaction or a combination of both.

Individual can also open, maintain and hold foreign currency account with a bank

outside India for making remittance without prior approval of RBI.”

(a) Remittance towards gift and donation by resident individual is allowed within

the overall limit of US DOLLAR 1,25,000 under Liberalised Remittance

Scheme.

(b) Investment by resident individual in overseas company would be subsumed

under the limit of US DOLLARS 1,25,000.

Import & Export Procedures & Documentation

Export : The facilities provided by the bank to exporters includes:-

(a) Pre-shipment Finance: Pre-shipment finance also broadly known as

packing credit is the advanceprovided by a bank to an exporter for

28
 financing the purchase, processing, manufacturing or packing of goods

prior to shipment on production of confirmed order/Letter of credit

issued by an overseas buyers.Exporter must fulfil the following main

criteria to be eligible for availing packing credit.Packing credit can be

availed in India Rupees/Foreign Currency.

(b) Post-shipment Finance: Post-shipment finance provided by the bank

includes the following:

(i) Export Bills Purchase/Discounting/Negotiation in India Rupees.

(ii) Export Bills Purchase/Discounting/Negotiation in Foreign

Currency.

(iii) Advance against expert bills sent for collection.

(c) Non-Fund Based Finance:The Bank provides services for issuance of

Guarantees on behalf of Indian Exproters for purpose related to Exports

such as

(i) Performance

(ii) Bid Bonds

(iii) Advance Payments

(d) Other Services: The other services extended to the exporters are:

(i) Advising/Confirmation of export letters of credit.

(ii) Collection of Exports Bills.

(iii) Foreign currency account for experts such as Exchange Earners

Foreign Currency(EEFC) account.

Importer:The Facilities Provided by the bank to importer include:-

(a) Collection/Payment of Import Bills: The import bills are collected

29
 through authorized branches at very competitive rates.The bank has

correspondent relationship with reputed International Banks through the

Globe enabling the bank to provide efficient services to the importer.

(b) Opening/Establishing Import LCs(Sight/DA): Punjab & Sind Bank

offers L/C facility for the buyer of goods from overseas sellers.

(c) Issuing Guarantee on behalf of Importers: Punjab & Sind Bank on

behalf of the Importer issues guarantees in favour of beneficiaries

abroad. Financing of Imports by way of Foreign Currency Loans.

(d) External Commercial Borrowing (ECB) & Trade Credits:-

(i) External Commercial Borrowings (ECB): Bank facilities

corporate in sourcing their Exteranl Commercial Borrowings.

(ii) Trade Credits: Bank also arranges Buyer’s Credit from the

foreign Banks for importers at competitive rates.

USE OF ITes

ERP

Punjab & Sind Bank employed ERP software in their organization . Rather than focus

strictly on the functional or technical aspects of an implementation, their broad and

independent experience allows them to implement ERP more effectively than if they tried

them to implement ERP more effectively than if they tried to do it themselves or with a

30
software vendor, system integrator or value-added reseller (VAR).

ERP implementation by focusing on the following activities:

(a) Certified project management focusing on risk, scope, cost, time and resource.

(b) Comprehensive process reengineering and workflow definition.

(c) Incorporation of LEAN methodologies, Six Sigma and other industry-specific skillsets

into the overall transformation

(d) Improvement of technical infrastructure

(e) Alignment of ERP implementation with organizational requirements

(f) Organizational change management, communication and training activities

(g) Optimization of measurable benefits

(h) Functional and technical development and support

(i) Customized ERP workshops

(j) Project recovery support

E- CRM

Punjab & Sind Bank had implemented e-CRM. They are operating e-CRM by using the

internet, various electronic touch-points as well other telecommunications related means

to initiate and manage the relationship that exists between an enterprise and its

customers/prospects. They have been using many technology channels today through

which e-CRM programs are executed and managed though they are also facing many

31
 challenges inherent in the execution and implementation of an e-CRM project. There are

issues of high costs that normally attend such programs. Beyond that however, other

issues such as the difficulty in establishing metrics for measuring the success. They have

also faced failures e-CRM as a result of their inability to zoom in and single out particular

business problems. Failure to establish and then carry the top management staff along in

e-CRM projects has been largely responsible for the death of many of such projects.

EXTERNAL ENVIRONMENT AND ANALYSIS

Political Factors

The government decision on November 8 to immediately demonetize the Rs.500

and Rs.1000 notes in circulation,which account for 86% of allCurrency in

circulation has impact a raft of sectors.

Negative impact:-The negative impact are because of

regulation,costsofdemonetisation,lossof opportunity and short-term damage to

economy.The 100%cash reserve requiremental deposits meant that banks did not

earn any interest on Rs.3 lakh crore of deposits for nearly a fornight.

Positive impact:-Increase in CASA deposits for most banks;lending rates to drop

further,The biggest beneficiary from this policy will be the banking sector.The is

mainly due to the queses of people depositing cash in the banks which will result in

substantial liquidity with the banks.

Economic Factors
32
 Economic factors in the country also effect the Banking Industry both favourably or

unfavourably .Also In the times of economic boom, more and more FDI is brought

into India through banking channels, that actually improves business for banks and

the economy in general Economic prosperity encourages lending business for the

banks but in times of recession banks face tough times to recover their money, issue

fresh credit and NIMs are lower too. The repo rate for the Banks are 6.50% if the

repo rate is more the the bank will give loans at a higher rate as vice versa. The

fiscial policy also affects the bank.

Social Factors
The Bank has delivered products and services considering the needs of the
customers and ensured that the products and services are sustainable to social and
environmental issues.

(a) Green Initiative:- The Bank has introduced several products viz. core banking

solution, internet banking, mobile banking, ATMs. Further, the Bank has Green

PIN facility which enables the customers to obtain duplicate PIN for debit card.

Bank ensures payment to staff, vendors and clients electronically.

(b) Rural Self Employment Training Institutes (RSETIs):- Our Bank has three

RSETIs at Moga, Faridkot and Ludhiana, established under the aegis of Bank’s

Trust i.e. PSB Trust for Development of Agriculture and Rural Employment (PSB

Trust for DARE), which conducts training programmes for unemployed youth for

self employment.

(c) Financial Inclusion:- Bank has implemented Financial Inclusion to empower

deprived and underserved sections of the population and the endeavor of the bank

has been to connect these people with the banking system i.e. “inclusion of the

33
 excluded” and make them a productive asset of the society. E-KYC has been

implemented at BC points for opening of Aadhaar based accounts.

Technological Factors

Mobile banking enables customers to check their account balance, transfer funds

24x7, bill payments, booking of bus/flight tickets, recharge prepaid mobile and do a

lot more effortlessly and securely Banking through cell phone benefits the banks

too. It cuts down on the cost of in-person banking and helps reduce headcount at

branches Technological developments facilitate the flow of information and data

faster leading to faster appraisal and decision-making as well. The crowd at the

Bank premises has also decreased.

Environmental Factors

The environmental factors have also affected the bank with theincrease in the

service sector the bank is benefitted because theme people earn the more they will

do saving and invest in the bank in the form of the deposits, this will increase the

cash with the bank. The increase in industry have also benefitted the bank due to the

increase in the loans given to the industries and earn huge profit.

Opportunities

(a)Small scale business banking across India.

(b) Expansion in other countries for international banking.

(c)Installation of more ATM’s and better customers services.

34
 Threats

(a)Economic crisis and economic fluctuations.

(b) Highly competitive environment.

(c) Stringent Banking Norms by the RBI and the Govts.

CHAPTER -3
DATA PRESENTATION AND ANALYSIS

3.1 OPERATIONS DEPARTMENT

Data collection
Sources of Data Collection

Primary Data Secondary Data

35
 Figure no.3: Data collection.

Primary Data

Primary data has been collected by Interviewing of staff member of different department

& personal observation.

Secondary Data

PSB Website, Annual Report,BanksMannual.

3.1.1Opertional system and processes

(a) Loan processes: Home loan

Document required while applying for the housing loan scheme are:

(i) Duly filled of the application from for the home loan.

(ii) Age proof of the applicant/borrower.

(iii) Permanent address of the applicant for sending application related

correspondence.

(iv) Documents required for helping the bank determine borrower’s repayment

capacity.

(v) Sale agreement of the property, towards which the loan is being taken or a

detailed price estimate given by an architect or engineer, approved by the

bank.

(vi) Approved drawings of house construction or extension or renovation.

(vii) Allotment letter granted by the association of owners or bye-laws.

(a) Opertional processes of electronic cheque clearance.

36
 Match account number, cheque number,micro number and amount.

And now open this software:-

My computer Local disk D outclg OUTCLG and software will

be open.

37
 Chapter-4

Summary and Conclusions

4.1Findings
On 24 June 1908 , bank was founded on the principle of social commitment to help the

weaker section of the society in their economic endeavors to raise their standard of life.

Punjab & Sind Bank is a public sector bank with government undertaking it provides all

the financial services as per the guidelines of reserve bank of India. The Bank is focused

on general banking services. They also provides net banking services, online services,

mobile banking services. The team of their employees is capable of handling

programming and development services, covering the needs of all the customers. Market

Capital of Punjab and sind bank is Rs.2010.06 crores and face value is Rs. 10 with

earning per share Rs. 8.39. Punjab and sind bank is a government-owned bank (79.62%),

with headquarters in New Delhi. Its net profit is Rs. 121.35 crores and net NPA is 3.55%

for the year ending 2014-15 .

Punjab & Sind bank gives much emphasis on non-monetary rewards such as honours and

recognition programmes as it has on monetary rewards. They focus more on process

innovation rather being result oriented because it will lead to better results.

Punjab and sind bank tends to focus on identifying and fulfilling consumer needs in

specific niche markets, but affected by large-scale economic trends. Accounting for trends

in the overall economy help bank manager make better decisions. Changes in the

perception of customer leading the bank to improve their service according to the needs

38
and demands of customer.

Bank is having a good knowledge about the technology but sometimes high cost of

replacement of technology accounts the bank for high expense.

4.2 Lesson Learnt & Suggestions

4.2.1 Lesson Learnt

(a) Working environment of the bank

(i) Working environment of PSB is very employee friendly , supervisors help their interns

grab more and more knowledge of corporate world.

(ii) In PSB workflow of projects from its inception to execution to clients is commendable

and is very helpful if somebody has to gain any practical knowledge at the very start of

their carrier.

(iii) Interpersonal relations among employees is helpful strength of the company which

helps employees to grow in long term.

(b) Practical knowledge gained in terms of practices

(i) Learnt about fund transfers inside the bank and other bank.

(ii) Procedure of doing NEFT and RTGS and its terms and conditions.

(iii) Net Banking Facilities.

(iv) Opening of joint accounts and its documentation.

39
4.2.2Suggestions

(a) The problem with PSB is that they have reached their capacity and cannot perform at

higher level, they must hire more employees for smooth functioning of the organization.

(b) They should align their services with another existing technology which can help them

to gain traction.

(c) As a trainee in PSB, everything was fine there, but there were lack of resources, they

should increase the resources. Direct interaction of all employees with the Director of

PSB.

(d) They have solid existing customer base so they should adopt the strategy of upselling

and cross-selling in order to maximize the value of each customer. The biggest benefit

here is that there‘s no advertising, marketing, or lead generation because they have

already acquired the customer, they just need to getting them to increase their average

purchase size.

4.3 Recommendation

Management should make proper use of employee by assigning them work according to

the interest. The results show above can help Punjab & Sind Bank to particularized their

strategic to improve the service quality in online customer service, & achieve the old

customer satisfaction. Besides , bank can expend its internet banking services to cover all

target customers. security & ease of use, positively to satisfaction & customer loyalty .

therefore the bank should focus on these dimensions in order to reach the desired

customer satisfaction level.

40
4.4 Conclusion

People and team members are friendly, helpful. Social life is good. Good working

environment and nice culture as well. Interns and fresher can gain lot of knowledge about

government organizations because supervisors are experienced as well as helpful.

The internet banking is widely known to be very beneficial to both customers

&organization.online customer service is a new channel for internet banking to support

their online system. However the number of users of internet banking are very limited,

bank should promote the prominence of internet banking & customer service,for the

advantages of time & cost saving , convenience, quick response to complaints etc. , to the

customers. According to research the results show that three dimension, responsiveness,

security & ease of use, positively to satisfaction & customer loyalty . therefore the bank

should focus on these dimensions in order to reach the desired customer satisfaction level.

41
 BIBLOGRAPHY

REFERENCE:

(a) Bank profile:https://en.wikipedia.org/wiki/Punjab_%26_Sind_Bank

(b) Market Share:www.moneycontrol.com

(c) https://www.psbindia.com/FinancialResults31032017

(d) Annual Report:https://www.psbindia.com/Annual%20Report_2016-17

BOOKS:

(a) Gilbert, T. R. (1960).Banking.Sunday Times.

(b) Brennan, L., C., & Barnes-Murphy, R. (2013). Banking.Mankato, MN:Childs

World.

(c) Khan, M. Y. (2013). Financial services. New Delhi: McGraw Hill Education.

(d) Kothari, C.R., & Gupta, R. C. (1991). India banking. Jaipur, India:Arihant.

(e) Duignan, B. (2013). Banking and Finance. New York: Britannica Educational pub.

(f) Mathur,B. L., (1989). Indian banking:performance problem &challenges.Jaipur:

National.

Appendix-A

42
Information about Company

Name of the Company – PUNJAB & SIND BANK

Branch– Rohini sec-3, New Delhi – 110085, India

Contact no – 011-25720849

E-mail ID – d0912@psb.co.in

Website Name – psbindia.com

Working Hours – 10:00 A.M to 4:00 P.M

Address of Registered Office – 21 Rajendra Place, New Delhi – 110008, India

Geographical areas of operation – In all over India, with 1,265 branches across the

country and 845 ATMs.

Appendix-B

43
Profit & Loss Account for the year ended on 31st March 2017

Particulars 2016-17 2015-16

INCOME 5,681.50 6,655.35

Interest / Discount on
2,255.59 1,896.51
Advances / Bills

Income from Investments 43.73 21.66

Interest on Balance with

RBI and Other Inter-Bank 192.06 170.82
funds

Others 8,172.87 8,744.34

Total Interest Earned 578.10 478.49

Other Income 8,750.97 9,222.83

Total Income

EXPENDITURE

Interest Expended 6,013.54 6,568.55

Payments to and 894.03

990.14
Provisions for Employees

Depreciation 42.46 45.74

Operating Expenses
(excludes Employee Cost 462.95 444.62
& Depreciation)

Total Operating Expenses 1,495.55 1,384.38

Provision Towards Income 63.09

70.63
Tax

Provision Towards 99.34

-423.33
Deferred Tax

Provision Towards Other 0.00

0.00
Taxes

Other Provisions and 771.49

1,393.49
Contingencies

Total Provisions and 933.92

1,040.79
Contingencies

Total Expenditure 8,549.89 8,886.85

44
 Net Profit / Loss for The 335.97
201.08
Year

Net Profit / Loss After EI 335.97

201.08
& Prior Year Items

Profit / Loss Brought 1,679.19

1,812.78
Forward

Total Profit / Loss

available for 2,013.86 2,015.16
Appropriations

APPROPRIATIONS

Transfer To / From 84.00

50.50
Statutory Reserve

Transfer To / From Special 17.72

72.32
Reserve

Transfer To / From Capital 21.15

33.77
Reserve

Transfer To / From -0.01

0.00
General Reserve

Transfer To / From
Revenue And Other 0.00 0.00
Reserves

Equity Share Dividend 0.00 66.07

Preference Share Dividend 0.00 0.00

Tax On Dividend 0.00 13.45

Balance Carried Over To 1,812.78

1,857.27
Balance Sheet

Total Appropriations 2,013.86 2,015.16

OTHER INFORMATION

EARNINGS PER SHARE

Basic EPS (Rs.) 5.02 8.39

Diluted EPS (Rs.) 5.02 8.39

Balance sheet for the year ended on 31st March 2017

Particulars 2016-17 2015-16

45
 EQUITIES AND
LIABILITIES

SHAREHOLDER'S
FUNDS

Equity Share Capital 400.41 400.41

Preference Share Capital 0.00 0.00

Total Share Capital 400.41 400.41

Reserves and Surplus 5,742.06 5,569.81

Total Reserves and Surplus 5,742.06 5,569.81

Total ShareHolders Funds 6,142.47 5,970.22

Deposits 85,540.16 91,249.96

Borrowings 2,958.44 2,839.01

Other Liabilities and

2,002.37 2,522.22
Provisions

Total Capital and

96,643.44 102,581.42
Liabilities

ASSETS

Cash and Balances with

4,364.68 3,822.56
Reserve Bank of India

Balances with Banks

Money at Call and Short 225.10 1,080.01
Notice

Investments 27,948.50 27,645.04

Advances 58,334.53 63,916.07

Fixed Assets 1,095.43 1,133.44

Other Assets 4,675.20 4,984.30

Total Assets 96,643.44 102,581.42

OTHER ADDITIONAL
INFORMATION

Number of Branches 1,500.00 1,488.00

Number of Employees 9,400.00 9,403.00

Capital Adequacy Ratios 11.00 11.00

46
 (%)

KEY PERFORMANCE
INDICATORS

Tier 1 (%) 9.00 9.00

Tier 2 (%) 2.00 2.00

ASSETS QUALITY

Gross NPA 6,297.59 4,229.05

Gross NPA (%) 10.00 6.00

Net NPA 4,375.08 2,949.47

Net NPA (%) 8.00 5.00

Net NPA To Advances (%) 8.00 5.00

CONTINGENT
LIABILITIES,
COMMITMENTS

Bills for Collection 597.07 1,271.91

Contingent Liabilities 9,729.68 14,758.63

CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH’2017

(000'S OMITTED) (000'S OMITTED)

A. Cash Flow from Operating 2016-2017 2015-2016

47
Activities

Net Profit as per Profit & Loss 1213483 3006264

Account

Adjustments for:

Provisions & Contingencies 6541015 4999155

Depreciation 462077 237688

Profit on sale of Assets -402 -1505

Interest on Bonds, PCPS and IPDI 1489709 1727740

Deferred Tax Liability 0 -234960

Corporate Social Responsibility 0 -20000

Fund

Operating Profit before 9705882 9714382

working capital changes

Adjustments for:

Increase / (Decrease) in Deposits 19845512 140886623

Increase / (Decrease) in 11431877 -2350084

Borrowings

Increase / (Decrease) in Other -2074772 -2654398

Liabilities

(Increase) / Decrease in 15549283 -57569407

Investments

(Increase)/ Decrease in Advances -71318530 -63213305

(Increase) / Decrease in Other -2955424 -128311

Assets

48
Cash Flow from Operating -19816172 24685500

Activities (A)

B. Cash Flow from Investing

Activities

Increase in Fixed Assets -845286 -581667

Profit on sale of Assets 402 1505

Cash Flow from Investing -844884 -580162

Activities (B)

C.Cash Flow from Financing

Activities

Issue of Equity Shares (Face 304362 212630

Value) for cash

Share Premium received thereon 1495638 787370

Public Issue Expenses -8121 -2188

Issue of Subordinated Bonds 0 0

Redemption of Subordinated -400000 0

Bonds

Interest on Bonds, PCPS and IPDI -1489709 -1727740

Dividend on Equity & PNCPS -240247 -785625

Dividend Distribution Tax -54167 -133517

Cash Flow from Financing -392244 -1649070

Activities (C)

49
Cash from Operating Activities -19816172 24685500

Cash from Investing Activities -844884 -580162

Cash from Financing Activities -392244 -1649070

Increase in Cash & Cash -21053300 22456268

Equivalents

Cash and Bank Balances 63248375 40792107

(Opening)

Cash and Bank Balances 42195073 63248375

(Closing)

50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71