Inplant Training in Pnb

A REPORT ON IN-PLANT TRAINING
AT
PUNJAB NATIONAL BANK

SUBMITTING IN FULFILLMENT OF THE PARTIAL

REQUIREMENT FOR THE

MASTER DEGREE IN COMMERCE

ST.JOSEPH’ COLLEGE (AUTONOMOUS)

TIRUCHIRAPALLI – 02

Submitted by

NETHRA

Reg.No:11PCO145

Under the supervision of

DR. G.JOHN, MCom, Mphil, PhD, .

DEPARTMENT OF COMMERCE
TIRUCHIRAPPALLI – 02.

CERTIFICATE

This is to certify that this In- plant training work is a bona fide dissertation done by NETHRA.M [11pco145] ST.JOSEPH’S COLLEGE (autonomous) TIRUCHIRAPALLI under my supervision in the academic year 2012-2013 as per the requirements for the degree of Master of Commerce.

Internal Examiner Head of The DEPT

Viva-Voce Examinations was conducted on ------------------------------- at St. Joseph’s College (Autonomous), Trichy-620 002.

External Examiner

ACKNOWLEDGEMENT

With great gratitude I would like to acknowledge the immense help to all there who have contributed their valuable suggestions and timely assistance to complete my project.

I thank God, the Almighty for showering his grace without whom I would not have been, what I am today.

I bow with gratitude to our principal Rev. Dr. A. Albert Muthumalai, SJ for giving me the wonderful opportunity to be a part of the St. Joseph’s family.

My Sincere thanks to Dr. LJ. Chaarlas, M.Com, MPhil, P.hD,MBA the Head of the commerce department for continuous guidance and encouragement.

I am grateful to my guide Prof.G.JOHN M.Com, MPhil, PhD for his constant support and help throughout my project. His support paved the way for me to finish my project successfully.

I owe my special thanks to all the staff of the commerce department. More than the teachers they have all been a real friend to me. I thank them for sharing their knowledge with me.

Last but not the least I will like to thank to Mr. RAVICHANDRAN, Sr.manager (pnb) in Trichy and the in plant training in charge Prof.G.JOHN M.Com, M.Phil., Ph.D. for rendering their support during this in plant training period.

I like this opportunity to thank all the people who helped me.

(M.NETHRA)

DECLARATION

I hereby declare that this report entitled inplant training on bank work done with special reference to the Punjab National Bank, Trichy. This is a bona fide report carried on by me in partial fulfillment of requirement of Master of Commerce Degree Programme of Bharathidasan University, Tiruchirapalli for the academic year 2012-2013.

NETHRA.M

CONTENTS

CHAPTER-1 | PROFILE OF ORGANISATION | HISTORY OF THE ORGANISATION | CHAPTER-2 | ORGANISATION STRUCTUREDEPARTMENTS | CHAPTER-3 | DETAILS OF THE BRANCH NATURE OF BOSS | CHAPTER-4 | NATURE OF WORK DONE | CHAPTER-5 | WEAKNESS SUGGESTIONS CONCLUSIONS |

CHAPTER-1

REPORT ON INPLANT TRAINING

NAME OF THE ORGANISATION:

“PUNJAB NATIONAL BANK”

PROFILE OF THE ORGANISATION:

VISION
“ To be leading global bank with pan India footprints and become a household brand in the indo-gangetic plains, providing entire range of financial products and services under one proof”

MISSION
“BANKING FOR THE UNBANKED”

HISTORY OF THE ORG.-

Punjab national bank was registered on May 19,1894 under the Companies Act with its office in anarkali bazaar, Lahore. The bank is the second largest government-owned commercial bank in India with about 5000 branches .it serves over 50 million customers.
PNB has distinction of being the first Indian bank to be started solely with Indian capital. Lala lajpat Roy, freedom fighter was actively associated with the management of the bank in the early years.

PNB has grown in size by acquiring the following banks:

1940- Bhagwan dass bank 1951-Bharath bank 1960- Indo commercial bank 1961- Universal bank of India 1986- Hindustan commercial bank 1993-New bank of India 2003- Nedungadi bank

After partition of India and Pakistan at the time of independence PNB shifted its head quarters from Lahore to NewDelhi. The bank was nationalized in the year 1969 from the government of India. It is number one nationalized bank in India. The bank has started opening branches from various countries like London, Afghanistan, HongKong, Nepal etc.

GROWTH:
Numbers of branches have increased as under:

Rs. in crores PARTICULARS | 2008 | 2009 | 2010 | 2011 | 2012 | Branches | 4267 | 4430 | 4956 | | | Capital &reserves | 12318 | 14654 | 17723 | | | Deposits | 166457 | 209760 | 249330 | | | Advances | 119502 | 154703 | 186601 | | | Priority sector credit | 43412 | 50793 | 63769 | | | | 19947 | 24057 | 30207 | | | Small scale industries | 12268 | 16086 | 24222 | | | Net profit | 2049 | 3091 | 3905 | | |

CHAPTER-2

ORGANISATION STRUCTURE:
The bank has three tier organizational structure.it consists of

The management of the bank is supervised through ten levels:-

DEPARTMENTATION:

Various functions of departments are undertaken by various departments like:

* RESOURCE MOBILISATION DEPARTMENT * CREDIT ADMINISTRATION DEPARTMENT * MARKETING DEPARTMENT * CUSTOMER SERVICE DEPARTMENT * INSPECTION AND AUDIT DEPARTMENT * HUMAN RESOURCE DEPARTMENT * GENERAL ADMINISTRATION DEPARTMENT * INFORMATION TECHNOLOGY DEPARTMENT

CHAPTER-3

DETAILS OF THE BRANCH WHERE I TOOK TRAINING:

Branch is located in kailashapuram near BHEL Township. It is located on the highways and its easily accessible to the public. It is a large branch headed by a senior manager. The branch has around 15 staffs.
The branch undertakes following major activities: * Opening of current account of business people * Opening of savings account * Opening of fixed deposit account * Opening of no frill account for NREGA payment * Opening of NRE accounts * Giving retail loans like housing, education, car loans * Giving industrial advances * Giving trading advances * Giving advance again gold ornaments * Providing remittance facility through drafts, NEFT, RTGS etc. * Provides locker facilities * Sells third party products such as insurance policies, mutual funds etc. * ATM is attached to the branch. Debit card is issued to customers for under taking transaction through ATM.

I worked under following department:

1.CUSTOMER SERVICE DEPARTMENT
2.MARKETING DEPARTMENT
3.DEPOSIT MOBILISATION DEPARTMENT
4.GENERAL ADMINISTRATIVE DEPARTMENT

NATURE OF THE BOSS:

My boss was kind enough to teach me the basic concept of banking business. On the the first day he introduced me to all other staffs in the branch and requested them to train me about the various activities dealt by them. Since it is a service industry I found that my boss and other staff members were customer oriented. I had the opportunity of working in various functions of the banking through the able guidance given by my boss. At the end of the day I used to apprise him of the job completed by me. He patiently hears me and suggests points for improving my performance.

CHAPTER-4

NATURE OF MY WORK:

A) The following are the activities done by me under customer service department:

* Directing the customers to the counters:
The branch has front office counters for under taking cash transactions, opening of deposit accounts, credit deployment counter, remittance counter. As soon a customer enters the bank, I enquire their requirements and direct them to the concerned counters. Being the first day I was given this simple activity so I could familiarize myself with the basic functions. It also enabled me to understand the customer expectations. I was feeling a sense of satisfaction when the customer thanked me for the assistance rendered by me for completing their job quickly.

* Helping the customers to fill the forms: The bank had ‘may I help you counter’ in which I had the opportunity to work in the second day. The bank had three kinds of challans namely cash challan, clearing challans and transfer chalans. The cash challan was used by the customers for depositing cash in the accounts. The clearing chalan was used for depositing cheques received by them. The clearing challans were sends the same day to the clearinghouse. The fate of the cheque was known next day and the amount was credited to customers account. Transfer challans were utilized for transferring funds between two accounts in the same branch. Apart from the above challans there was a separate challan for taking drafts, NEFT, RTGS.I had the chance of helping the customers to fill up the above forms.

* Helping the customers to open deposit accounts: The bank had printed account opening forms; it was a common form for opening various kinds of deposit schemes like current, savings accounts, fixed deposits, and recurringdeposits. In addition to account opening forms there was also a customer master form that has to be submitted along with the account opening form. The customer master form contains the details about the profile of the customers like his permanentaddress, detail of his family members, occupation, details of his assets and liabilities. The customer master form is collected to complete the “Know Your Customer (KYC)” norms fixed by reserve bank of India. This form also provides information for doing marketing activity for (e.g.) If customer mentions that he do not own house we can explain banks housing scheme to him. The account opening form is taken as an agreement between the customer and the bank while taking the form the bank collects the proof of address and also identity card from the customers. The following forms like:
Ration card
Latest telephone bills
Employee certificate
Following forms are collected for identification purpose:
Driving license
Voters card
PAN card
I gave the relevant account opening and master form to customer and assisted them to fill up the relevant columns. I also collected proof of address and IDcard. After completing the procedures I handed over the forms to the officials of the bank.

* Updating of pass book and statement of accounts: Bank has given option to the customers to opt for passbook or statement of accounts. The customers have to come to the bank for updating passbook; bank has a passbook-writing machine in which passbook is placed for making entries of the transaction. The statement of account is sent through post of email to the customers. I was given the task of sending the statement of accounts to the customers. The customers who came for updating the passbook was directed to the concerned counter for completing their transaction entries.

* Arranging forms of the branch: The branch has a record room in which all kinds of forms and registers are maintained. The bank has specified forms for deposit schemes and loan schemes. Each form was given a number for easy identification and convenience of handling. Branch manager told me to arrange the forms in set. This enabled the branch manager to give the relevant forms to the customers for (e.g.) if a customer wants a housing loan he was given the housing loan application with other document for applying to the bank. Since the forms were arranged in order it saved time in easy identification and giving to the customers.

* Sending e-mail/sms to customers: The branch had Internet facility with specified email id. Email was used by the bank as it saves cost and it ensures speedy communication to the customers. I was given the task of following kinds of messages: * New deposit schemes introduced by the bank * Latest interest rates * Communicating loan installments * Sending letter of thanks for introduction of new customers

* Ensuring KYC norms by collecting identity proof and address proof from the customers: RBI has given direction the bank that all accounts should fulfill KYC norms. Any accounts opened without KYC will invoke penalty for the bank. Hence branch manager told me to verify whether all account opening forms has proof of address and id card, where ever this proof was not available I made a list of accounts and informed branch manager. H e then advised me to communication to concerned customer and contact them over phone to give the necessary proof.

B) The activities done by me under marketing department:

* Marketing the deposit schemes among the customers: Bank has various schemes to suit the recruitments of the customer. The bank has printed pamphlets giving the gist of benefits for opening accounts under each scheme . The branch manager told me to distribute the pamphlets that are coming to the branch. I also sent the pamphlets through post to important customers of the bank. There are also specific schemes for opening students’ accounts. They had approached some of the schools nearby and after getting the permission of the principal pamphlets were distributed. The branch manager explained the schemes to students.

* Organizing marketing camps: The bank was having marketing team, which is used to put up stalls in exhibition, fares and important locations for publicizing the bank products. During my training period the bank has organized a camp with tie up with maruti dealer in bank premises. The maruti dealer has displayed latest model of car in the camp. The customers who approached the camp were told about the details of the car by the car dealer. The bank official explained the details of the car loan facility offered by the bank. I helped the bank officials to welcome the customers and distributing the forms.

* Sourcing of credit card/debit card applications: The branch had an automated teller machine (ATM) in the branch premises. The debit card offered the customer to under take banking transactions in all 365 days and 24 hours. The customer didn’t carry cash and they can do their shopping by utilizing debit or credit card. The difference between debit and credit card is that, in case of using debit card the customer account is debited as soon as the transaction is completed whereas in case of credit card banks giving credit limit depending upon the repaying capacity of the customers. As soon as the transaction is completed using the credit card, the loan account of the customer is debited and monthly statement of dues is sent to the customer. The customer can pay the dues in installment. I explained the benefits and procedure to the customers and requested them to give application for debit/credit card.

C) The activities done by me under deposit/credit department:

* Assisting the officials for insuring the loan assets: The bank had to take insurance in respect of securities created by giving loan. The bank has entered into tie up with the insurance company for getting insurance at a reasonable rate. The bank is maintaining records of security, which needs to be insured. The insurance officials frequently visit the branch to ascertain the security that needs insurance. The branch manager told me to prepare list of accounts for which insurance have to be taken, after preparing the list I contacted the insurance official to come to the bank. The insurance officer worked out premium for each loan account. This list was given to concerned bank staff for debiting loan account and a consolidated cheque was given to bank officer.

* Sending recovery notices to the defaulting borrowers: Bank is fixing repayment schedule for loan accounts depending upon the purpose and activity of the loan. The due date of the installment is diarized in the computer. The customers who are not repaying the loan on the due date are shown by the computer. Bank is having a printed notice form to be sent to various customers. The bank officials gave me and list of defaulting customers and advised me to prepare the notice. The notice was sent by the post to the residence of the customers. SMS was also sent informing the loan amount to be repaid. I also contacted some of the customers over phone and requested to deposit the loan amount within stipulated time to avoid penalty.

* Receiving loan application and entering in register: As per bank procedure the loan applications submitted by the customers have to be entered in the register. There was time norm for disposing the application under each scheme. An acknowledgement slip of having received the application was also given to the customer. I was asked to enter these applications in the register. * Signature scanning of accounts: Cheque withdrawal/cheque payment is allowed by the bank only when the signature in the cheque tallies with signature in the bank record. In the olden days where there were no computerizations the sign was maintained in the ledger by the bank but nowadays the bank is operating in centralized computerization environment. The cheque can be presented by the customer in any of the branches all over India. In order to help the other branches it is necessary to have the customers sign scanned and uploaded in the centralized computer data center so that it can be viewed by the branches any where in the country and cheque can be passed. Each branch is provided with a scanning machine for undertaking this activity. The signature is scanned from account opening form. I assisted the officials in this task.

* Test checking of interest application and service charges: Generally the interest rates and service charges are applied by the computer system. The system charges interest/service charges depending upon the parameter set for the accounts opened in the system.
The bank manager gave few accounts along with the interest charges and requested me to manually check the interest charged and service charges collected.

* Telephoning borrowers on due date of loan installments: The list of defaulting borrower along with the phone number was given to me. I contacted some of the borrowers and informed the amount to be repaid by them in the loan account. I also requested some of the borrowers to come to bank and personally meet th bank manager.

* Sending cheque books to customers: The customer gives requisition slips to the bank for issuance of chequebooks to their accounts. Normally the cheque book is delivered to the customer as soon as the requisition slip is given but sometimes due to heavy work customers are sent by courier to their residence. Bank officer gave me such pending chequebooks; I sent them through registered post to customers.

D) The activities done by me under general administrative department:

* Preparing statements for sending to controlling offices: Branch prepares various kinds of statements for sending it to the regional office. Most of the statements are generated from the computer system and sent to administrative office after verification. The bank manager gave me some of the statements, which needs to be generated from the system and given to him for his verification and sign. After verification the statements were dispatched to controlling office.

* Assisting the officials in preparation of tds certificates: Tax is deducted at source in respect of interest paid to customers. Bank is required to give tds certificate to those customers to whom tds have been deducted. The tds is generated by the system every month and sent to customers. The bank officials prepared the tds certificate and gave to me for dispatching.

* Attended the staff meeting of the branch: As per head office policy of the bank each branch is requested to have staff meeting once in the month. The branch manager invited me also as a guest, during the meeting the branch manager explained the developments and performance of the branch to the staff members. The dealing officers also deliberated about the latest changes in procedures and schemes circulated at head office in the month. This meeting helped to bring co-ordination among the staff members and sense of involvement. Staff members were also asked to give suggestions for improving the working of the bank.

* Preparing statement on service tax: Service taxes have to be calculated as per finance act and deposit in government account every month. The branch is collecting the service tax from customers on services rendered. The amount collected at the end of each month is sent to regional office for depositing it in government account. I assisted the officer in completing this task.

* Physical verification of SFF: (Safe, Furniture, Fixtures) The Branch purchases safe, furniture, fixtures, computers for their requirements. As soon as it purchased it is entered in the register and also in the computer. Depreciation is charged every year depending upon the cost of the item. The depreciation is charged on straight-line method. The branch is required to physically verify the items mentioned in the register and send confirmation to the controlling office. The bank manager asked me to check some of the items.

* Preparing reconciliation statement: The branch is having an account with another bank for the purpose of clearing operation. The statement of account is given by the bank that manages the clearinghouse. This statement is received every week and reconciled every week with the records available in the bank. The bank officer gave me statement and asked me to reconcile the balance and difference was identified and given to officer for taking necessary action.

* Lodgment of subsidy claim: The government is given subsidies in some of the government-sponsored cases for upliftment of people below poverty line. As soon as the branch gives loan under this scheme it has to submit the subsidy application form in prescriber proforma to nodal development agencies of government department for getting the subsidy. The subsidy received is then kept as fixed deposit in favor of the loan beneficiaries. On repayment of the loan subsidy amount is credited to the loan account. Further government of India has also introduced scheme for reimbursing the interest charged in educational loan account of the students. The interest is reimbursed only in respect of parents whose annual income is less than 4.50lacs per annum. In order to avail this facility parents have to give income proof issued by the tashildar. The bank manager asked to collect such certificated and also lodge subsidy claim with nodal agencies.

* Generation of daily monitoring reports of the branch manager: Head office has specified some important reports thatneed to be generated from the system and verify thoroughly. This report will enable the branch manager to know about the daily transaction happening in the branch. This will also help him to rectify the mistakes committed by the staff. The branch manager has to certify every month to the controlling office that these reports were taken and verified by him. I was advised by the bank manager to generate the list of reports from the system and give him for his verification.

* Generating balance sheet and revenue statements: Bank branch is required to generate a balance sheet on weekly basis from the system. This statement is called weekly statement of affairs. This statement reveals the balance outstanding in various general heads. The general heads is present both in liability and asset side. Similarly revenue statement is generated every month from the system. This statement reveals the income earned and expenditure incurred under various heads. After generation of statement data is compared with previous statements. The comparison will enable the branch officer to know whether the progress is in tune with the target allotted to him. The branch officer told me to prepare comparison chart of variation under various heads from the weekly statement of affairs and revenue statements.

* Arranging of circulars:
Head office of the bank has various divisions which issues circulars on regular basis, these circulars are placed in the website of the bank. The branch officer asked me to download the circulars issued for last one week after generation of circulars these were arranged according to the department and filed in chronological order of date of issue.

CHAPTER-5

STRENGTH OF THE TRAINING:

* I was able to understand the banking terminologies in detail and their functions. * When I had direct contact with the customers I was able to overcome my fear and was able to understand the expectations of the customer. * I was able to improve my communication skills by interacting with customers and officials. * I was able to sense that bank had corporate social responsibility to improve the society. * I learnt the art of follow up of persuading the customers to open the accounts and to pay the loan installments.

WEAKNESS:

* It was difficult to understand the procedures and practice in short period of time. * Officials were busy in their day-to-day routine and were not able to give adequate attention to the trainee.

SUGGESTIONS:

* The branch ambience can be improved by relaying the counters and air conditioning the branch. * Visibility of the branch can be improved by placing neon-sign boards in important locations.

CONCLUSION:

Overall the training was a different experience to me. It helped me to understand the working atmosphere in the organization and also the qualities in me for having a successful career in my life.