PNB &SBI 10-09-2009

Study the Customer Preferences Towards ATM services of PNB and SBI

EXECUTIVE SUMMARY

Punjab National Bank is the largest nationalized bank in India while its direct competitors are

State Bank of India, Bank of Baroda, Central Bank etc. whereas it is also competing with other

private banks like ICICI Bank, HDFC Bank, and Standard Chartered Bank etc.

Punjab National Bank to compete in services with other banks has introduced many services for

its customers. This report includes information about ATM services provided by Punjab National

Bank in comparison with State Bank of India.

In India ATM is still a new technology. With the emergence of private sector Banks like ICICI

Bank, IDBI Bank, HDFC Bank etc. The number of ATM centers has increased tremendously.

There are presently all types of Banks offering ATM services. For example State Bank of India

(a Public Sector Bank), ICICI Bank (a Private Bank), Citibank (A Foreign Bank), Greater

Bombay CO-OP Bank (a co-op Bank).The Banks are offering various services like Cash

withdrawal, fund transfer, Balance enquiry etc. The Banks have tie-ups in between them for

sharing of their services this may be bilateral or multilateral by way of consortium like

SWADHAN.

The report includes a brief description of company profile of both the banks i.e. is PNB and SBI

and then with help of questionnaire the comparison has been done of the ATM services provided

by both the banks.

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INTRODUCTIONINTRODUCTION

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Introduction

“Whatever the mind of man can conceives and believe, the mind can achieve”

Man is a complex mix of elements and ever new invention motivates him to achieve

something new. There was a time when human race struggled for food lived in caves and then

slowly, gradually and eventually with his strong desire, dedication and determination he moved

on to invention of wheel, two wheelers, four wheelers, computer, laptop, economy, currency and

unending list of elements.

As the development continues with accelerated momentum he felt a strong need of

something which could add him in enhancing what he had with something what was in

possession of someone else and thus Money and Economy were born.

But this was sheer beginning. Slowly men felt need of an institution which can safely

keep the wages of man, can provide him money over some obligation (interest) when he was in

dire need and thus it was conception of the institution called “Banks”.

At the time of its conception the primary purpose of a bank was provide loan to trading

companies; and the name bank derived from Italian word banco naming “desk / branch” used

during renaissance by Florentine Bankers who used to make their transaction above desk covered

by green table cloth.

“Change is a part of Life”.

It is apt to say that with the increasing facilities man craves more and it is this craving of

his which introduces various changes in the “modus operandi” of various activities. Thus with

the passage of time, the function of bank penetrated to individual.

Bank today covers various financial and commercial activities which include:-

Issue of promissory notes.

Processing of payment by way of telegraphic transfer.

Issuing bank drafts and cheques

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Accepting money on term deposit.

Lending money by way of overdraft, installments, loan or otherwise.

Safe keeping of documents and other items in a safe deposit box.

Currency exchange.

Sales, distribution or brokerage with or without advice, of insurance, unit trusts and

similar financial products.

As service of bank expanded, bank started using various methods which can aid in managing

all the functions of bank and thus banks introduced various physical evidence like cheques, bank

drafts and ATMs, Credit cards etc.

An ATM [Automated Teller Machine] is a technological version of traditional bank teller

who used to disperse cash and other facilities over bank counter. However bank teller was

available only during bank working hours, the ATM are 24 X 7, at disposal of customers.

Thus ATM is computerized telecom device that provide a customer of a financial transaction

in a public place without the need of human desk [bank teller].

However ATM are invention of 20th Century when in 27th June 1967, Barclay Bankers

installed first electronic ATM in Enfield town in North London.

In India SBI was first Bank to introduce ATM Service in 1996. PNB, the second largest

government owned commercial bank in India with about 4500 branches across 764 cities and

serving over 37 million customers to introduce this service soon after SBI.

Thus the ATM Service slowly becomes common to various banks in India too. Today almost

all the bank issue a free of cost ATM to all the customers of all their branch that are internet

worked through core banking system.

Hence, it is an endeavor to draw a comparative study between the pre issuance and post

issuance ATM Service of the major government owned banking Titans, SBI AND PNB.

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PUNJAB NATIONAL BANK

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PROFILE

With over 37 million satisfied customers and over 4589 offices, PNB has continued to retain its

leadership position among the nationalized banks. The bank enjoys strong fundamentals, large

franchise value and good brand image. Besides being ranked as one of India's top service brands,

PNB has remained fully committed to its guiding principles of sound and prudent banking. Apart

from offering banking products, the bank has also entered the credit card & debit card business;

bullion business; insurance business; Gold coins & asset management business, etc.

Since its humble beginning in 1895 with the distinction of being the first Indian bank to have

been started with Indian capital, PNB has achieved significant growth in business which at the

end of March 2008 amounted to Rs 2,85959 crore. Today, with assets of more than Rs 1, 99,000

crore, PNB is ranked as the 3rd largest bank in the country (after SBI and ICICI Bank) and has

the 2nd largest network of branches (4589 including 322 extension counters).During the FY

2007-08, with 43% share of low cost deposits, the bank achieved a net profit of Rs 2,049 crore,

maintaining its number ONE position amongst its peers. The bank’s Return on Assets at 1.15%

was also the highest. During the FY 2007-08,its’ ratio of priority sector credit to net bank credit

at 44.11% & agriculture credit to net bank credit at 18.94% was also higher than the respective

national goals of 40% & 18%.

PNB has always looked at technology as a key facilitator to provide better customer service and

ensured that its ‘IT strategy’ follows the ‘Business strategy’ so as to arrive at “Best Fit”. The

bank has made rapid strides in this direction and achieved 100% branch computerization. A

pioneering effort of the bank in the use of IT is the implementation of Core Banking Solution

(CBS) which facilitates “any time, anywhere” banking. PNB has implemented CBS in 3503

service outlets at around centers to facilitate "anytime, anywhere" banking to its clients. The

bank has also been offering Internet banking services to the customers of CBS branches like

booking of tickets, payment of bills of utilities, purchase of airline tickets etc.

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Towards developing a cost effective alternative channels of delivery, the bank has installed more

than 1516 ATMs and entered into ATM sharing arrangement with other banks & IDRBT,

making available a pool of additional 21,500 ATMs throughout the country to its customers.

Backed by strong domestic performance, the bank is planning to realize its global aspirations. In

order to increase its international presence, the bank has already set up representative offices at

Almaty (Kazakhstan), Dubai (UAE) & Shanghai (China) ; a branch at Kabul (Afghanistan) and a

subsidiary at London (UK) and a branch at Hongkong. Work on assessing potential at other

international centers is progressing. The bank also has a joint venture with Everest Bank Ltd.

(EBL), Nepal, with 20 per cent equity participation. With PNB’s management, EBL has become

one of the leading banks in Nepal. As a tribute to its consistent business growth, improved assets

& attractive returns to shareholders in the joint venture, PNB has won ‘Bank of the Year’ Award

in Nepal (2006) by ‘The Banker’; a publication of the London based Financial Times.

Amongst Top 1000 Banks in the World, ‘The Banker’ listed PNB at 255th place. Further the

leading international Credit Rating index provider, Standard & Poor’s (2006) listed PNB,

amongst the 300 World companies & 7 Indian companies, which are expected to emerge as

challengers to the world’s leading blue chip companies.

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Awards

Awards & Achievements of Punjab National

Bank in Recent Times

"Best IT Team of the Year Award" At the IDRBT Banking Technology awards for the year 2005-06.

SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking & Financial Services Industry - 2004

by NASSCOM in partnership with Economic Times

Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of Directors

FICCI's Rural Development Award for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary use of Technology

for becoming a pioneer in Public Banks - 2005

Golden Peacock National Training - 2004 & 2005

by Institute of Directors

National Award for Excellence in SSI Lending

Ranked 2nd for 4 consecutive years - 2002, 2003, 2004 & 2005

Banking Technology Awards 2004 Runner up in 'Best IT Team of the Year Award 2005'

Jointly Adjudged by IBA, Finacle & TFCI

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Niryat Bandhu Gold Trophy

for excellence in export performance for 3 consecutive years 2001, 2002 & 2003by Federation of Indian Exporters Organization (FIEO)

21st Amongst Top 500 Companiesby the leading Financial Daily The Economic Times, June 2005

9th amongst India's Top 50 Most Trusted Service Brands

A.C Nielson Survey, The Economic Times Dec 2004

3rd Rank amongst Banking Sector in

India

323rd Rank in the World

The Bankers' Almanac, January 2006

368 amongst Top 1000 Global Banks The Banker, London July 2005

Punjab National Bank provides the following service:-

1. Current A/C 2. Loan

3. Corporate Salary A/C 4. Online A/C

5. Debit Card 6. Phone Banking

7. Intercity/ Inter Branch Banking 8. Net Banking

9. Bill Pay

Deposits

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-Demand Deposit

Current Deposit

Saving Deposit

-Time Deposit

Fixed Deposit

Akshaya Deposit

Cumulative Deposit

Pragati Deposit

Loan:-

Housing finance for individuals

Car finance

Finance for consumer disables

Finance for Scooter/Motorcycles

Finance against future lease Rentals

Personal loan to pensioners

Personal loan to serving Army officers, Govt. & other Employees

Education loan scheme

Advance against life policy

Advance against bank deposits

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- ATM’s

Debit Card

PNB INTRODUCES ADD-ON DEBIT CARD:-

Share the convenience of PNB Debit card with your loved ones .Simply gift them add-on card.

PNB Customers of CBS branches can get two add-on cards along with his own Debit card for

free. The person you are gifting the card to does not necessarily have to be an account holder

with PNB.

The add-on card can be issued in the name of spouse, dependent parents, and dependent children

not below 18 years. The add-on cardholders like the main cardholder will also be covered for

accidental death insurance of Rs. 1 lace subject to certain terms and conditions. The transactions

done by add-on cardholders will automatically get debited to the account of the primary

cardholder who shall be responsible for all the transactions made by Add On card holder/s.

Issuance of Debit Card from Call centre:-

"CBS branches customers of our Bank may also get PNB Debit Card simply by contacting our

All India Call Center over phone at the following no's :-

1800 180 2222 Toll free 0124-2340000 Accessible from mobile also.

ATM Sharing Arrangements

PNB Debit Card is purely an on-line product. It is ATM-cum-Debit card having “Maestro”

branding which is sub-brand of MasterCard International. PNB Debit Card bears ‘Maestro’ logo

on the front and ‘Cirrus’ logo (for ATM usage) on the back. Debit Cards can be used to

withdraw cash through ATMs as well as used by the customers at over 45000 merchant

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establishments accepting Maestro Debit Card for shopping purposes. It is thus an ATM-cum-

Shopping Card.

Personal Identification Number (PIN) is the key security feature of the Debit Card. It is a four

digit numerical number.

A few aspects of Bank’s Debit Card are highlighted as under:

Valid in all Maestro and Cirrus Acceptance Marks.

Acceptance in India at over 32,000 “Maestro” Merchant locations and over 4200

MasterCard ATM’s across 70 cities.

Wide acceptance at both Merchant Locations (including Utility bill payment) and ATM

locations across India

A PIN (Personal Identification Number) based magnetic Stripe Card which provides the

safety and security to customers, while accessing their funds with the bank

PIN can be changed at all PNB networked ATMs

Initially available to account holders of CBS branches that are networked

It is offered absolutely free

No pre-set limit on the card. Limit is equal to the available funds in the customers’

account. Initially Rs.15,000 cash withdrawals and Rs.25,000 by way of point of sale

(POS) transactions per day are permitted

Card validity - Till the customer holds the account

Bank has tied up with Reputed Corporate and Local Merchants to provide discounts on

usage of card for payment through Debit Card. Corporate from the entire spear are

covered, to quote few are like Escorts, Max Health Care, Apollo, Travel Gin, Cox and

Kings, Holyday INN, Hans, Park. A list of tie-ups is available

Branches eligible to issue Debit Cards

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Initially Debit Cards are issued to the customers of CBS branches only. All the CBS branches are

eligible to issue Debit Cards to their customers

Who is eligible for PNB Debit Card?

All existing customers who are maintaining minimum balance and who regularly operate their

account shall be eligible for the issuance of Debit Card. New customers who open their accounts

after introduction of the Debit Card shall also be eligible for the issue of Debit Cards at the time

of opening the account itself.

Existing ATM Cardholders who have done at least one transaction during the immediately

proceeding quarter.

Debit Card facility shall be extended to the individual customers only, having Savings Bank

Account and Current Account. Debit cards shall also be issued to individual customers having

overdraft facility, which is in the nature of a personal loan. This shall mean and include personal

loans extended to individual customers in the form of a regular overdraft limit such as clean

overdraft facility or overdraft facility against FD/NSCs/LICs etc. where operations through

cheques are permitted.

Debit Card can be issued in Joint Accounts with “Either or Survivor”/”Former or Survivor”

mandate. In “Either or Survivor” accounts cards can be issued to both the account holders

whereas in “Former or Survivor” accounts card can be issued only to the Former. In joint

Accounts where account has to be jointly operated Debit Card shall not be issued unless mandate

for operation of account is changed to “Either or Survivor” or “Former or Survivor” basis.

PROFILE OF SBI

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The Bank is actively involved since 1973 in non-profit activity called Community Services

Banking. All our branches and administrative offices throughout the country sponsor and

participate in large number of welfare activities and social causes. Our business is more than

banking because we touch the lives of people anywhere in many ways.

BOARD OF DIRECTORS

Sr. No. Name of Director

1.Shri O.P. Bhatt

Chairman

2.Shri S.K. Bhattacharyya

MD & CC&RO

3.Shri R. Sridharan

MD & GE(A&S)

4. Dr. Ashok Jhunjhunwala

5. Shri Dileep C. Choksi

6. Shri S. Venkatachalam

7. Shri. D. Sundaram

8. Dr. Deva Nand Balodhi

9. Prof. Mohd. Salahuddin Ansari

10. Dr.(Mrs.) Vasantha Bharucha

11. Dr. Rajiv Kumar

12. Shri Arun Ramanathan

TRANSFORMATION JOURNEY IN STATE BANK OF INDIA

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The State Bank of India, the country’s oldest Bank and a premier in terms of balance sheet size,

number of branches, market capitalization and profits is today going through a momentous phase

of Change and Transformation – the two hundred year old Public sector behemoth is today

stirring out of its Public Sector legacy and moving with an agility to give the Private and Foreign

Banks a run for their money.

The bank is entering into many new businesses with strategic tie ups – Pension Funds, General

Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale Merchant

Acquisition, Advisory Services, structured products etc – each one of these initiatives having a

huge potential for growth.

The Bank is forging ahead with cutting edge technology and innovative new banking models, to

expand its Rural Banking base, looking at the vast untapped potential in the hinterland and

proposes to cover 100,000 villages in the next two years.

It is also focusing at the top end of the market, on whole sale banking capabilities to provide

India’s growing mid / large Corporate with a complete array of products and services. It is

consolidating its global treasury operations and entering into structured products and derivative

instruments. Today, the Bank is the largest provider of infrastructure debt and the largest

arranger of external commercial borrowings in the country. It is the only Indian bank to feature

in the Fortune 500 list.

The Bank is changing outdated front and back end processes to modern customer friendly

processes to help improve the total customer experience. With about 8500 of its own 10000

branches and another 5100 branches of its Associate Banks already networked, today it offers the

largest banking network to the Indian customer. The Bank is also in the process of providing

complete payment solution to its clientele with its over 8500 ATMs, and other electronic

channels such as Internet banking, debit cards, mobile banking, etc.

With four national level Apex Training Colleges and 54 learning Centers spread all over the

country the Bank is continuously engaged in skill enhancement of its employees. Some of the

training programs are attended by bankers from banks in other countries.

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The bank is also looking at opportunities to grow in size in India as well as internationally. It

presently has 82 foreign offices in 32 countries across the globe. It has also 7 Subsidiaries in

India – SBI Capital Markets, SBICAP Securities, SBI DFHI, SBI Factors, SBI Life and SBI

Cards - forming a formidable group in the Indian Banking scenario. It is in the process of raising

capital for its growth and also consolidating its various holdings.

Throughout all this change, the Bank is also attempting to change old mindsets, attitudes and

take all employees together on this exciting road to Transformation. In a recently concluded

mass internal communication program termed ‘Parivartan’ the Bank rolled out over 3300 two

day workshops across the country and covered over 130,000 employees in a period of 100 days

using about 400 Trainers, to drive home the message of Change and inclusiveness. The

workshops fired the imagination of the employees with some other banks in India as well as

other Public Sector Organizations seeking to emulate the program.

SBI's Retail Banking

State Bank of India offers a wide range of services in the Personal Banking Segment which are

indexed here.

SBI Term Deposits SBI Loan For Pensioners

SBI Recurring Deposits Loan Against Mortgage Of Property

SBI Housing Loan Loan Against Shares & Debentures

SBI Car Loan Rent Plus Scheme

SBI Educational Loan Medi-Plus Scheme

SBI Personal Loan Rates Of Interest

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DEPOSIT SCHEMES

All branches, are fully computerised, and realise the advantage of our vast network. Place funds

in Multi Option Deposit Scheme, a term deposit which is not fixed at all and comes with a

unique break-up facility which provides you full liquidity as well as benefits of higher rates of

returns, through your savings bank account. Alternately, keep that deposit intact by availing an

overdraft facility, to meet your occasional temporary funds requirements.

PERSONAL FINANCE

State Bank of India has a variety of schemes under Personal Finance to satisfy varying needs of

the banking public. The Bank offers the following schemes with attractive rates of interest:

Loan For ESOPS

* Housing Loan

* Easy Travel Loan

* Car Loan

* Educational Loan

* Personal Loan

* Property Loan

* Loan to Pensioners

* Loan Against Shares/Debentures

* Festival Loans

* Medi-Plus Scheme

* Teachers-Plus Scheme

* Sainik-Plus Scheme

* Tribal-Plus Scheme

* EMI Calculator

* Credit Khazana

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SERVICES

State Bank of India offers a wide range of services in the Personal Banking Segment which are

here.

SBI VISHWA YATRA FOREIGN TRAVEL CARD

ATM SERVICES

GIFT CARDS

GIFT CHEQUES

INTERNET BANKING

FOREIGN INWARD REMITTANCE

LOCKER

ATM SERVICES

STATE BANK NETWORKED ATM SERVICES

State Bank offers you the convenience of over 8000 ATMs in India, the largest network in the

country and continuing to expand fast! This means that you can transact free of cost at the ATMs

of State Bank Group (This includes the ATMs of State Bank of India as well as the Associate

Banks – namely, State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of

Indore, State Bank of Mysore, State Bank of Patiala, State Bank of Saurashtra, and State Bank of

Travancore) and wholly owned subsidiary viz. SBI Commercial and International Bank Ltd.,

using the State Bank ATM-cum-Debit (Cash Plus) card.

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KINDS OF CARDS ACCEPTED AT STATE BANK ATMs

Besides State Bank ATM-Cum-Debit Card and State Bank International ATM-Cum-Debit Cards

following cards are also accepted at State Bank ATMs: -

1) State Bank Credit Card

2) ATM Cards issued by Banks under bilateral sharing viz. Andhra Bank, Axis Bank, Bank of

India, The Bank of Rajasthan Ltd., Canara Bank, Corporation Bank, Dena Bank, HDFC Bank,

Indian Bank, Indus Ind Bank, Punjab National Bank, UCO Bank and Union Bank of India.

3) Cards issued by banks (other than banks under bilateral sharing) displaying Maestro, Master

Card, Cirrus, VISA and VISA Electron logos

4) All Debit/ Credit Cards issued by any bank outside India displaying Maestro, Master Card,

Cirrus, VISA and VISA Electron logos

State Bank ATM-cum-Debit (State Bank Cash plus) Card:

India’s largest bank is proud to offer you unparalleled convenience viz. State Bank ATM-cum-

Debit (Cash Plus) card. With this card, there is no need to carry cash in your wallet. You can

now withdraw cash and make purchases anytime you wish to with your ATM-cum-Debit Card.

Features:

Withdraw cash from over 8000 ATMs of our group FREE and about 16000 ATMs of other

banks under bilateral sharing viz. Andhra Bank, Axis Bank, Bank of India, The Bank of

Rajasthan Ltd. Canara Bank, Corporation Bank, Dena Bank, HDFC Bank, Indian Bank, IndusInd

Bank, Punjab National Bank, UCO Bank and Union Bank of India apart from ATMs displaying

Master Card/ Maestro/Cirrus logo for a nominal fee as under: -

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Transaction ATMs of Sharing network banks

Other banks under Maestro/ Master Card/ Cirrus network

Cash Withdrawal

Rs. 25/- * Rs. 50/-*

Balance Inquiry

Rs. 12/-* Rs. 12/-*

Make payments for purchases by using the debit card at more than 2,39,000 shops, restaurants,

shopping malls, hotels, petrol pumps and many other outlets which display Maestro logo.

Recharge pre-paid mobile phones of Vodafone, IDEA and BPL without any charges at any State

Bank ATM.

Recharge pre-paid mobile phones of AIRTEL of 11 Circles viz. Mumbai, Delhi, Gujarat, M.P.,

U.P. (East), U.P. (West), Karnataka, Kerala, Andhra Pradesh, Tamilnadu, and Chennai, through

ATM/ SMS anywhere in India.

Recharge mobile phones of AIRTEL, Vodafone, IDEA and BPL without any charges at all

ATMs as well as by sending SMS (after registration at State Bank ATM).The text of SMS will

be as under: -

Service Provider

SMS Text Send SMS to

Airtel RC (AMOUNT) PIN 535

BPL RC SBI (AMOUNT) PIN

140

Vodafone RC SBI (AMOUNT) PIN

147

IDEA RC SBI (AMOUNT) PIN

575

Pay MTNL, Mumbai bills through State Bank ATMs

Payment of SBI Credit Card bills

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Payment of SBI Life insurance premium

Pay fees of select colleges

Donate to Temple Trusts: - (a) Vaishno Devi (b) Shirdi Saibaba (c) Gurudwara Takht

Saheb, Nanded (d) Tirupati and (e) Sri Jagannath Temple, Puri

Transaction Limits:

Daily limit of Rs 25,000/- at the ATM

Daily limit of Rs 50,000/- at Point of Sale (POS) terminal for debit transactions

Combined daily limit of Rs 75,000/-

Fees:

There is no joining fee for State Bank ATM-cum-Debit (Cash Plus) card. Annual maintenance

fee of Rs. 50/- p.a. will be recovered from the second year of issue.

Apply for your card

If you already have a Savings Bank or Current Account with us, apply for State Bank ATM-

cum-Debit (Cash Plus) card at your branch.

State Bank Cash plus International Card:

This is an International ATM-cum-Debit Card with which you can enjoy shopping at over

2,64,000 establishments in India and over 10.5 Million establishments worldwide displaying

Maestro logo, wherein the amount you spend on your card is automatically debited to your

account. Withdraw cash from over 8000 ATMs of our group FREE and over 16000 ATMs of

other banks under bilateral sharing viz. Andhra Bank, Axis Bank, Bank of India, The Bank of

Rajasthan Ltd. Canara Bank, Corporation Bank, Dena Bank, HDFC Bank, Indian Bank, IndusInd

Bank, Punjab National Bank, UCO Bank and Union Bank of India apart from ATMs displaying

Master Card/ Maestro / Cirrus logo in India and more than 8, 20,000 ATMs across the globe for

a nominal fee. In India, it would function as the State Bank ATM-cum-Debit (Cash Plus) card.

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TRANSACTION COSTS: -

Earlier the Card holder's account was liable to be debited with the following fees, if the

transaction was made at an ATM owned by bank other than SBI and its Associates: -

Type of transaction Transactions at ATMs of

Banks under arrangements

for Bilateral Sharing of ATM

Network

(A)

Transactions at ATMs of

other Banks under Maestro /

Master Card/ Cirrus network

(In India)

(B)

Cash Withdrawal Rs. 25/- * Rs. 50/- *

Balance Inquiry Rs. 12/- * Rs. 12/- *

NOTE: W.E.F 1st April 2009 ATM machine of any bank can be used free of cost according to

RBI guidelines.

STATE BANK INTERNATIONAL ATM-CUM-DEBIT CARD

Eligibility:

All Saving Bank and Current Account holders having accounts with networked branches and are:

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18 years of age & above

Account type: Sole or Joint with “Either or Survivor” / “Anyone or Survivor”

Benefits:

Convenience to the customers traveling overseas

Can be used as Domestic ATM-cum-Debit Card

Available at a nominal joining fee of Rs. 200/-

Daily limit of US $ 1000 or equivalent at the ATM and US $ 1000 or equivalent at

Point of Sale (POS) terminal for debit transaction

Purchase Protection*up to Rs. 5000/- and Personal Accident cover*up to Rs.

2,00,000/-

Charges for usage abroad: Rs. 150+ Service Tax per cash withdrawal Rs. 15 + Service

Tax per enquiry.

Acceptability:

Card can be used at:

More than 8,20,000 ATMs and 7 million POS, worldwide, displaying Cirrus logo

All State Bank Group and tie-up banks’ ATMs, and ATMs & POS in India displaying

Master Card/ Maestro / Cirrus logo

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Importance of the study

It is aimed to study the Customer Preference towards ATM Services of Punjab National Bank

and State Bank of India. The project is analyzed the demographic, psychographic and preference

characteristics of the customers in using ATM. It includes the detailed study of customers

focusing on the various parameters that lead to identifying and understanding the perception of

the customer and behavior regarding services offered by SBI and PNB. SBI and PNB both are

public sector bank and enjoy the loyalty of customers due to their work quality and long era of

services. So it becomes important to reveal a correct diagram and impact of the ATM services

provided by it maintaining their dignity and position.

Objectives of the Project

Whether the customer is satisfied with ATM facility?

If yes to what extent, if no what are the shortcomings.

What are the shortcomings, which need attention?

To draw Comparison between the Satisfaction of Customers from ATM services of SBI and PNB

Limitations:

The following were the limitations that were there during the course of the study:

Limited time period.

Less number of respondents.

Biasness of the respondents.

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In – depth financial information could not be attained due to the policies of the

company.

REVIEWREVIEW

OFOF

LITERATURELITERATURE

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ATM INDUSTRY STATUS IN INDIA

In India ATM is still a new technology. With the emergence of private sector Banks like ICICI

Bank, IDBI Bank, HDFC Bank etc. The number of ATM centers has increased tremendously.

There are presently all types of Banks offering ATM services. For example State Bank of India

(a Public Sector Bank), ICICI Bank (a Private Bank), Citibank (A Foreign Bank), Greater

Bombay CO-OP Bank (a co-op Bank).

The Banks are offering various services like Cash withdrawal, fund transfer, Balance enquiry etc.

The Banks have tie-ups in between them for sharing of their services this may be bilateral or

multilateral by way of consortium like SWADHAN.

AUTOMATIC TELLER MACHINES (ATMS) SHARED BY A CONSORTIUM OF

BANKS

Each bank provides its own computer to maintain its own accounts and process transactions

against them. Cashier stations are owned by individual banks and communicate directly with

their own bank’s computers. Human cashiers enter account and transaction data. Automatic

teller machines communicate with a central computer that clears transactions with the

appropriate banks. An automatic teller machine accepts a cash card, interacts with the user,

communicates with the central system to carry out the transaction, dispenses cash, and prints

receipts. The system requires appropriate record-keeping and security provisions. The system

must handle concurrent accesses to the same account correctly. The banks provide their own

software for their own computers; you are to design the software for the ATMs and the network.

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The cost of the shared system is normally apportioned to the banks according to the number of

customers with cash cards.

In India very good example of such consortium is SWADHAN NETWORK. SWADHAN

NETWORK is a net work of various public sectors Banks, Private Banks and Co- operative

Banks with nationwide coverage.

SWADHAN

SWADHAN, India’s FIRST Shared Payment Network Service is unsurpassed in offering

countrywide access to the banking operations at more than 1000 ATMs in and around 64

cities. It has 55 member banks in the network, which includes nationalized, private and foreign

banks. SWADHAN provides convenient banking, 24 hours a day and 7 days a week through the

Automated Teller Machines to the participating bank’s customers across the country. With

SWADHAN, the bank customers are never far away from an ATM.

The member bank’s customer can withdraw money anytime from any of the ATM irrespective of

the bank with which the customer has an account. It offers services beyond cash withdrawals,

like utility bill payment, fund transfer and deposits. SWADHAN widens the scope of ATM

usage in the country in a cost effective manner. A member bank of SWADHAN can increase its

geographical presence without deploying ATMs in all the locations; instead it can share and use

ATMs of other banks, thereby saving a substantial amount. Likewise, the customer of the bank is

highly benefited by having a nation-wide access to the card, without holding multiple accounts in

different banks.

The average transaction per day in the SWADHAN network is around 2500. The largest and

only Shared Payment Network System (SPNS) in India, SWADHAN is posting a very

impressive growth rate since its inception. In 1997, at the start of the network, the number of

ATMs in SWADHAN Network was only around 24, whereas today it is grown close to 1000

ATMs. Today, in the country, 25% of the ATMs are networked to SWADHAN. Everyday

brings new ATMs and banks to the network.

27


Being the leading light in Shared Payment Network System for debit cards in India, it has

auspicious plans to provide connectivity to the international payment networks, such as master

card and visa in a very formidable way. It is poised to enable the existing system for e-payments

thereby helping the banks excel in an e-powered service.

ATM SERVICES OF PNB

&

SBI BANK IN INDIA

As part of its 'Clicks and Bricks' strategy, both SBI and PNB Banks have developed

multiple access channels comprising lean brick and mortar branches, ATMs, call centers and

Internet banking. The branch network including extension counters presently covers many

locations across India.

SBI and PNB Bank’s network of 24 hr ATMs is one of the largest and most widespread ATM

Networks in India. Banks ATMs are conveniently located in Commercial areas, residential

localities, Major Petrol Pumps and Airports, Near Railway Stations and other places, which are

conveniently accessible to customers.

The SBI and PNB Banks ATMs feature user-friendly graphic screens with easy to follow

instructions. IT has also introduced ATMs, which interact with customers in local languages for

further convenience.

The following are the features available on SBI and PNB Banks ATMs, which can be accessed

from anywhere at anytime.

Cash Withdrawal:

28


A customer can withdraw up to Rs.25, 000/- on a single day from his account. In this, the Fast

Cash option shows prefixed amounts, which a customer can choose from, and Ultra Fast Cash

option to withdraw Rs.3000/- at one time.

Balance Enquiry:

Customer can know the ledger balance and available balance with his account.

Mini Statement:

Customer gets a receipt printout of his last 8 transactions and the balance.

Deposit Cash / Cheques:

Available in all full function ATMs, customers can deposit both cash and cheques in the ATM.

Cash deposited in ATMs will be credited to the account on the same day and cheques sent for

clearing on the next working day.

Funds Transfer:

Customer can transfer funds from one account to another linked account in the same branch.

PIN Change:

The Customer Change the Personal Identification Number (PIN) of the ATM or Debit card.

Payments:

This is the latest feature on Banks ATMs, its functionality can be used for payment of bills,

donating to temples / trusts or making airtime recharges for prepaid mobile phones.

29


RESEARCHRESEARCH

METHODOLOGYMETHODOLOGY

30


METHODOLOGY OF STUDY:

Research can be defined as a systemized effort to gain new knowledge. A research is

carried out by different methodologies which have their own pros and cons. Research

methodology is a way to solve research in study and solving research problems along with logic

behind them are defined through research methodology. Thus while talking about research

methodologies we are not only talking of research methods but also consider the logic behind the

methods. We are in context of our research studies and explain why it is being used a particular

method or technique and why the others are not used. So that research result is capable of being

evaluated either by researcher himself or by others.

ASSUMPTIONS:

1. It has been assumed that sample of hundred represents the whole population

2. The information given by the customer is unbiased

COLLECTION OF DATA:

This research is solely based on primary research done by means of questionnaires targeted

to respondents who primarily belong to the business and service sector. The sample size is 100.

Survey has been conducted in DELHI

31


a. Sampling Methods: A sample is the representative of the populations which will predict

the behaviors of the whole universe

b. The sampling size put under 2 categories: Probability Sampling and Non Probability

Sampling.

Questionnaire

A questionnaire will be administered to the current ATM users of various banks in Delhi; the

questionnaire will contain not more than 13 questions.

SAMPLING PLAN

Relevant Population

People using SBI and PNB Banks ATM cards in Delhi City.

Sample Size

Sample of 100 has been taken from Delhi City

32


DATA ANALYSIS

AND

INTERPRETATION

33


Data Analysis and interpretation

Q1. Do you have account in?

Table 1

State Bank of India 38

Punjab National Bank 22

Both 19

Others 21

34


Interpretation

Q2. Do you have ATM Services with your account?

Table 2

State Bank of India

Punjab NationalBank

Both

Others

38%21%

19%

22%

35


Yes 68

No 22

Yes

No

Q3. Which of these is the most important reason for possessing ATM card/s?

Table 3

36

68%

22%


Bank offered Free 55

For emergency purpose 60

Availability of many ATM centres 40

24 hour accessibility 20

31%

35%

23%

11%

Bank offered Free

For emergencypurpose

Availability ofmany ATM centres

24 houraccessibility

Q4 How frequently do you use ATM card in a week?

Table 4

37


Less than 3 times 12

3-5 times 18

5 to 8 17

More than 8 times 21

24%

22%28%

26% 3-5 times

5 to 8

More than 8 times

24 hour accessibility

Q5. What is the purpose/s for using ATM? (Tick one or more)

Table 5

38


Cash Withdrawal 45

Balance Inquiry 13

Balance Transfer 2

Others 8

51%

15%2%

9%

23%

Cash Withdrawal

Balance Inquiry

Balance Transfer

Others

24 houraccessibility

Q6. How much time do you spend waiting in queue at ATM?

Table 6

SBI (38/100 Customers) PNB(22/100 Customers)

Less than 5 min 8 12

5 min to 10 min 28 6

10 min or more 2 4

39


8

28

2

12

64

0

5

10

15

20

25

30

Less than 5min

5 min to 10min

10 min ormore

SBI (38/100Customers)

PNB(22/100Customers)

Time

Q7. How long does it take to process your transaction at the ATM centre?

Table 7


Less than 5 min 25 18

5 min to 10 min 10 4

10 min or more 3 0

40

Num

ber

of c

usto

mer

s


25

10

3

18

4

00

5

10

15

20

25

30

Less than 5min

5 min to 10min

10 min ormore



Time

Q8. Have you ever been cheated or your ATM has been misused without your permission?Table 8


Yes 2 0

No 36 22

41

Num

ber

of c

usto

mer

s


20

36

22

0

5

10

15

20

25

30

35

40



Yes

No

Q9. Did you complaint for the fraud and any action taken by Bank Authority

Table 9


Yes 2 0

No 1 0

42

Num

ber

of c

usto

mer


2

0

1

00

0.5

1

1.5

2

2.5


Yes

No

Q10. What are the additional services provided by your bank at ATM?

Centres? (Tick one or more)

Table 10


Cash Deposit 0 0

Cheque Deposit 0 0

43

Num

ber

of c

usto

mer

s


Bill Payments 38 22

Phone bank 0 0

Other 20 12

0 0

38

0

20

0 0

22

0

12

0

5

10

15

20

25

30

35

40

Cash D

eposit

Cheque

Dep

osit

Bill Pay

men

ts

Phone

ban

k

Other



Q11. How much satisfied are you with your ATM service?

Table 11


Highly Satisfied 4 2

Very Satisfied 6 2

Satisfied 18 10

44

Num

ber

of c

usto

mer

s


Less Satisfied 5 6

Not Satisfied 5 2

46

18

5 5

2 2

10

6

2

02468

101214161820

Highly

Satis

fied

Very S

atisf

ied

Satisf

ied

Less

Sat

isfied

Not Sati

sfied



Q12. How much secured do you feel to use ATM card?

Table 12


Highly Secured 8 2

Very Secured 10 2

Secured 15 14

45

Num

ber

of C

usto

mer


Less Secured 4 4

Not Secured 1 0

8

10

15

4

12 2

14

4

00

2

4

6

8

10

12

14

16

Highly

Secu

red

Very S

ecur

ed

Secure

d

Less

Sec

ured

Not Sec

ured



Q13. Do they run out of cash frequently?

Table 16


Always 18 5

Sometimes 18 10

Never 2 7

46

Num

ber

of C

usto

mer

s


18 18

2

5

10

7

0

2

4

6

8

10

12

14

16

18

20

Always Sometimes Never



47

Num

ber

of C

usto

mer


FINDINGSFINDINGS

ANDAND

CONCLUSIONCONCLUSION

48


FINDINGS AND CONCLUSION

This project was a great experience for me and I really learnt a lot of things from this

project. This project gave us the knowledge and information about ATM machines, banks

offering ATM services and also about the people and their attitudes and perceptions towards

ATM’s.

I have found,

People want the ATM centers to be very close to their houses or place of work.

People want that they should not be made to wait in queues in front of ATM centers.

They want that the bank should go ahead and bring all its functions and activities on the

ATM machine. The bank should provide services like balance transfer, balance inquiry

etc. and that too at a cheap rate.

The ATM machines sometimes take a lot of time to process a transaction and therefore

the customers have to wait for a long time in front of the machine and which is

“irritating” according to some respondents and if possible the banks should improve the

software they use and reduce the time required by the customers.

PNB and SBI ATM centers do not provide additional services like cash deposit, cheques

deposit, bill payments etc.at all its centers, which many people want but they don’t get it

and leads to their dissatisfaction and where ever it is available it is charged.

49


I have also found in this survey that many of the respondents felt that they were feeling

secured using the PNB and SBI ATM card services and this has led to increased

satisfaction level of these respondents which is a good sign.

I also conclude from this survey that the almost 70% people are satisfied with the number

and location of the PNB and SBI ATM centers. But they still insisted that the number

should be increased to give enhanced service and satisfaction to its customers.

Another good finding from this survey was that the ATM centers of PNB and SBI bank

rarely run out of cash even though it is one of the largest used ATM centers. About 49%

of the respondents said that it never runs out of cash.

50


RECOMMENDATIONSRECOMMENDATIONS

51


RECOMMENDATIONS

The findings and the conclusions reveal that there is a lot of changes which can be

brought about to improve the perception and satisfaction of the customers towards PNB and SBI

banks ATM centers.

I recommend that,

PNB and SBI bank should increase the number of ATM centers and at strategic positions.

Software used by the bank should be updated and fast so that people are not made to wait

in the queue.

PNB and SBI bank can bring all its services on the ATM machines.

Facilities like cash deposit should also start at the ATM centers.

To increase the customer base and the customer satisfaction the ATM facility should be

made as secured and safe as possible. PNB and SBI ATM is one of the safest but still

there is scope for improvement.

52


REFERENCES

Books

Kothari .C.R. (2004). Research method. (2nd edition). New Age International publisher

Michael Dr. V.P. (2004) .Research methodology in management. (5th revised edition).

Himalaya publishing house.

Shethihar .K.C. (2005) Banking theory & practice. (9th edition). Vikas publishing house pvt.

ltd.

Websites

http://www.pnbindia.com

http://www.pnbindia.in/english_web/debitcard.htm

http://www.statebankofindia.com

http://www.statebankofindia.com/user.htm

53

http://www./

http://www./

http://www.pnbindia.in/english_web/debitcard.htm

http://www.pnbindia.com/


QUESTIONNAIRE

Name___________________________________________________________

Address_________________________________________________________

Age __________________________ Profession ________________________

Q1. Do you have account in?

a) PNB b) SBI

c) Both d) Others _______________ (specify)

Q2. Do you have ATM Services with your account?

a) Yes b) No

Q3. Which of these is the most important reason for possessing ATM card/s?

(Tick one or more)

a.) Bank offered Free b) For emergency purpose

c.) Availability of many ATM centres d.) 24 hour accessibility

e) Others (specify) ________________

Q4 How frequently do you use ATM card in a week?

a.)Less than 3 times b.)3 – 5 times

c.)5 – 8 times d.)More than 8 times

Q5 What is the purpose/s for using ATM? (Tick one or more)

a) Cash withdrawal b) Balance enquiry

c) Balance Transfer d) Other (Specify)______________

Q6. How much time do you spend waiting in queue at ATM?

Less than 5 mins 5 mins to 10 mins10 mins or more

Q7. How long does it take to process your transaction at the ATM centre?

Less than 5 mins 5 mins to 10 mins 10 mins or more

Q8. Have you ever been cheated or your ATM has been misused without

54


Your permission

Yes No

Q9. Did you complaint for the fraud and any action taken by Bank Authority

Yes No

Q10. What are the additional services provided by your bank at ATM?

centres?(Tick one or more)

a) Cash Deposit b) Cheque Deposit c) Bill Payments

d) Phone bank e) Other (specify)_____________

Q11. How much satisfied are you with your ATM service?

Highly Satisfied - Very satisfied – Satisfied-

Less satisfied - Not Satisfied -

Q12. How much secured do you feel to use ATM card?

Highly secured - Very secured – Secured -

Less secured - Not secured -

Q13 Do they run out of cash frequently?

a)Always b) sometimes c)never

Signature of respondent

Thank You

55

Documents

PNB &SBI 10-09-2009