Punjab National bank: The Punjab National Bank or PNB is one of the well known commercial and banking institutions in India. It is the second largest government owned and regulated commercial bank in the country and offers specialized solutions and financial services in a number of sectors. Around 37 million customers are served by the bank on an average basis. The customized facilities and services make it a trusted name in the domain of banking.
Growth of Punjab National Bank
Punjab National Bank was registered under the Indian Companies Act on 19 May in the year 1894 and its first office was set up at Anarkali Bazaar in Lahore. Since then, the bank has become a great name in the field of banking and is very much preferred by the customers for the wide range of its services. Today, the bank has around 4,904 branches in around 764 cities.
Due to its facilities and services of high standards, Punjab National Bank has also been the recipient of a number of prestigious awards. It has been adjusted as the 248th biggest bank across the globe according to a recent survey made by Bankers Almanac in London. The Economic Times has also listed the bank as 38th among the premier 500 companies and the 9th among the most trusted brands in India. The total asset value of the bank amounts to around US$60 billion. There is also a subsidiary of the PNB in the United Kingdom. In addition the bank also has branches in some other cities like:
Kabul
Honk Kong
Oslo
Shanghai
Dubai
Almaty
Services of Punjab National Bank
Punjab National Bank offers financial solutions and services in an array of sectors. All these services that are offered keep pace with the changing market trends in order to fulfill the needs and preferences of the customers. Some of the well known sectors on which the main functions of the bank are based are:
Personal Banking
Corporate Banking
Agriculture finance services
Industrial finance services
Trade financial services
International banking services
PNB also has commercial relationship with more than 200 prestigious international banks across the globe. It has the provisions of Rupee Drawing Arrangements with around 15 exchange companies in the UAE and 1 in Singapore.
In case of the personal banking segment, the bank offers customized solutions to take care of almost all financial needs of the customers. Some of the well known services that are offered in the bank are:
Savings Fund Account
Fixed Deposit scheme
Current account
Loan services
Punjab National Bank is also a well known name in housing loan benefits. The bank offers both short term and long term loans. The rates are also affordable and can be paid within a particular time. The housing loans are given for a number of purposes such as:
Construction of a building
Purchase of a new house or a flat
Purchase of flat or house on a First Power of Attorney basis
For the purpose of repair or renovation of a house or a building
The PNB Housing Finance sanctions around 80% of the cost of the project. However, the maximum amount is around Rs 50 lakh. The maximum loan amount for the purpose of renovation and repair is Rs 5 lakh. In most cases, the loan is available for a period between 5 and 20 years before one becomes 65 years of age. The interest of the loan is based on the reducing balance and the principal amount of the loan is also based on the repaying capability of the borrower.
Mutual funds of Punjab National Bank
The mutual funds of Punjab National Bank are covered under the Principal PNB Asset Management Company. Some of the well known schemes of mutual funds are:
Principal Growth Scheme
Principal balanced Fund
Principal Income Fund
Principal government Securities Fund
Principal Income Fund - Short Term Debt
Principal Cash management Fund
Principal Index
DISTRIBUTION CHANNELS USED BY PUNJAB NATIONAL BANK:
PNB has the second largest distribution channel in the country next only to SBI. Two thirds of distribution channels are located in the rural and semi-urban areas, which provide excellent reach to less banked areas.
Punjab National Bank promoted Punjab National Life Insurance is undertaking a major exercise to beef up its distribution network. PNB is going to increase its distribution channels by both increasing its own branches and of the group by which distribute insurance products. Now days approximate 8000 branches of the group are distributing life products, and PNB planning to sell the products from all the 14000 branches of the group.
PNB are tying up with co-operative banks in Maharashtra to start with to beef up their distribution network.
All branches of PNB are linked on an online real-time basis. Customers over 500 locations are also serviced through Telephone Banking. PNB 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 customers base for both deposits and loan products.
Punjab National Bank signed a memorandum of understanding to provide consumer finance on tractor that pioneered the introduction of low cost tractors in the Indian agriculture sector.
This move is designed to re-structure the traditional distribution channel for tractor retailing and promotes a direct link between the farmer and the company. So that Small farmers can look forward to fair pricing, transparent dealings, optimum after-sales service as well as comprehensive consultancy from company representatives on optimum usage of the tractor as well as entrepreneurial possibilities on generating additional income streams by owning the tractor.
Punjab National Bank announced the strategic alignments to offer Online Trading services to the customers using SMC Global and NSBL's network. PNB signed an agreement to this effect with SMC Global Securities Ltd, SAM Global Securities Ltd, SMC Comtrade Ltd and NSBL. PNB customers, now with this 3-in-1 (Savings Bank, Demat, and Trading Account), can enjoy the convenience of investing in financial products from the comfort of their homes/ offices or while on the move or from any other location of their choice by just accessing the SMC website (www.smcindiaonline.com ) and also by clicking on the link to Online Trading provided on the homepage of the bank's website (www. pnbindia.com).
PNB customers now have the additional option of clicking on the link of Online Trading provided on the home page of the bank's website and making investments in Equities, Derivatives, Commodities, Initial Public Offerings (IPOs), Mutual funds using the online trading platform of SMC and NSBL from the comfort of their homes/ offices or while on the move or from any other location of their choice.
PNB bank also consciously decided to have a 'Centralised Processing Unit (CPU)' that took care of all back-office functions and thus left branches to concentrate on selling. This allowed the bank to set up smaller branches at a lower cost.
With a wide network and multiple channel access, customers deal with the bank in several ways. Each interaction is an opportunity to cross-sell another product. After all, historically it has always been cheaper to sell to an existing customer than to acquire a new one. Punjab National Bank leveraging routine communication such as account statements to carry marketing messages and cross-sell products while driving down communication costs.
PNB Housing Finance Ltd. (PNBHF), a wholly owned subsidiary of Punjab National Bank with spread of its branch network in 28 cities across the country, today entered into a unique tie up with IIFFCO TOKIO to provide its customers with ITGI's fire & personal accident insurance policy along with housing loans.
Now days in Bangalore Punjab National Bank was going to introduce the concept of branchless banking by setting up kiosks in unbanked villages. This project known as 'Project Namaskar' and under this one lakh kiosks would be established in unbaked villages to extend the bank's reach and create large customer base.
PNB had launched a pilot project in Sonebhadra district through its Robertsganj branch for facilitating wage payment under National Rural Employment Guarantee Act (NREGA) project. Under the project, the bank had opened accounts through banking correspondents and around one lakh smart cards had already been distributed among the NREGA beneficiaries.
The Varanasi circle of bank that includes 15 districts would see an improvement in banking services with the setting up of 19 new ATMs.
To meet the bank's mission of banking for unbanked, PNB was ready to distribute over 500 rickshaws to rickshaw pullers in Mirzapur district.
PNB is also keen to become an active player in the insurance market. The bank has adopted a referral model to distribute its products.
