Summer Internship Project Report on

“Study on Central Bank Digital Currency (CBDC) and Retail

Banking System in India”

A Training Report
submitted in the partial fulfillment of the
requirement for
the award of a Degree of

Master of Business
Administration

SUBMITTED BY
RIYA KUMARI
ROLL NUMBER:
MBA/15016/23

DEPARTMENT OF MANAGEMENT
BIRLA INSTITUTE OF TECHNOLOGY
MESRA, RANCHI

2023-2025

Page 1 of 57
 DECLARATION

I, Riya Kumari, bearing registration number MBA/15016/23 and currently pursuing a Master
of Business Administration (MBA) at Birla Institute of Technology, Patna, solemnly affirm
that the comprehensive project report titled "Study on the Retail Banking System and Central
Bank Digital Currency in India" embodies my original and authentic work. The in-depth
research and analysis for this project were conducted meticulously over a period of 5 weeks,
commencing on 5th June 2024 and concluding on 6th July 2024.

Furthermore, I unequivocally declare that this project has not been previously submitted by
any other individual in fulfillment of any academic degree or diploma. This project represents
a culmination of extensive independent research and critical insights developed over the
specified timeline.

DATE:

(Guide’s Name & Signature)

Department of Management
Birla Institute of Technology
Mesra, Ranchi

Head
Department of Management
Birla Institute of Technology
Mesra, Ranchi

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 Certificate of Approval

The foregoing training report entitled “Study on the Retail Banking System and Central
Bank Digital Currency in India”, is hereby approved as a creditable study of the project
topic and has been presented satisfactorily to warrant its acceptance as a prerequisite to the
degree for which it has been submitted.

It is understood that by this approval, the undersigned do not necessarily endorse any
conclusion drawn or opinion expressed therein but approve the training report for the purpose
for which it is submitted.

Name Signature

1. Internal Examiner ___________________

2. External Examiner ___________________

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 SNAPSHOT OF THE SIMILARITY INDEX REPORT

PASTE TURNITIN SIMILARITY INDEX REPORT HERE

GUIDES ARE REQUESTED TO SIGN ON THIS COPY OF SNAPSHOT OF

PLAGIARISM REPORT BEFORE HARD BOUND COPY

This is to certify that the above plagiarism report snapshot for a project
entitled “Study on Central Bank Digital Currency (CBDC) and Retail Banking
System in India” has been taken from Turnitin official website (http://turnitin.com) /
iThenticate official website (https://www.ithenticate.com) accessed on 21/10/24.

We are aware that the above report can be verified for its tempering at any
moment of time. In the situation of tempering, the project report will be cancelled
without any notification.

Date: 22/10/2022

<<Name of Guide with

Name of Students with Signature signature>>

1. Riya kumari
<<Designation>>

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 ACKNOWLEDGEMENT

"This project has been a collaborative effort, made possible through the invaluable guidance
and assistance from various individuals. I extend my sincere appreciation to Mr. Abhijeet
Anand, Training Manager at Punjab National Bank, whose unwavering support and direction
have been instrumental at every phase of this project's development. Mr. Anand's expertise in
project management and training methodologies has significantly contributed to the
successful execution of this initiative.

I am thankful to Birla Institute of Technology Mesra and my guides, Dr. Sunil Kumar Pandey
and Professor Dr. Vijay Agarwal. Their mentorship and encouragement throughout this
endeavour have undoubtedly enriched my learning experience and broadened my perspective
on education and social impact. Finally, I express my deepest gratitude to my parents. Their
steadfast support has been pivotal in facilitating my successful completion of the summer
internship training at Punjab National Bank. Their unwavering belief in my abilities and their
continuous encouragement have been the cornerstone of my achievements.

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 ABSTRACT

While pursuing my MBA at BIRLA INSTITUTE OF TECHNOLOGY MESRA, I had the

opportunity to undertake a 4-6-week summer internship at Punjab National Bank, one of
India's leading public sector banks. The primary objective of this internship was to gain
practical insights into the application of theoretical concepts acquired in the classroom.

The comprehensive report that I have prepared presents a detailed analysis of Punjab
National Bank, encompassing its historical evolution, current market position, and
operational intricacies, as well as an in-depth examination of its policies and procedures. This
report outlines my active involvement in various departments, including retail banking,
general banking, and finance, offering a comprehensive scrutiny of each operational facet.

Throughout the internship, I made concerted efforts to bridge the gap between theoretical
knowledge and practical application, equipping myself to address real-world challenges using
the skills cultivated during my academic tenure. This involved working closely with senior
professionals, participating in client meetings, and contributing to developing financial
strategies and solutions.

Furthermore, the report encapsulates my reflections, challenges encountered, and the

dynamic professional milieu within the institution. It also highlights the specific projects I
was involved in, the skills I developed, and the impact of the internship experience on my
overall professional development.

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 PREFACE

As part of the academic requirements for the Master of Business Administration (MBA)
program at Birla Institute of Technology, the submission of a comprehensive project report is
a crucial milestone. This project serves as an essential tool for MBA students, bridging the
gap between theoretical knowledge and practical application within the business
environment. The report aims to immerse students in the current industrial landscape,
providing them with first-hand exposure to real-world business operations and challenges.

The primary objective of this project is to ensure that students are well-prepared to meet the
demands of the competitive business world. By engaging in this in-depth analysis, students
develop a keen understanding of the intricate workings of industries and businesses,
equipping them with the practical knowledge necessary to excel in their chosen career paths.
Through rigorous research, observation, and application of business concepts, students
enhance their analytical, problem-solving, and decision-making skills.

In today’s dynamic and rapidly changing business environment, where globalization,

technological advancements, and innovation play a pivotal role, this project fosters an
assertive and proactive approach towards tackling real-world business challenges. Students
are expected to not only identify current trends but also anticipate future industry movements,
providing them with a competitive edge.

Moreover, this project offers an opportunity to gain a comprehensive understanding of the

prevailing industrial policies, standard operating procedures, and the impact of emerging
trends on businesses. Through this process, students are expected to explore critical factors
such as market dynamics, financial performance, technological disruptions, regulatory
changes, and sustainability practices. This report will serve as a platform to present well-
researched insights and recommendations that reflect the culmination of their academic
learning and practical experience.

In essence, the project seeks to cultivate business acumen in students, empowering them to
become confident, adaptable, and forward-thinking professionals who can contribute
meaningfully to their organizations and the broader business community. The knowledge and
skills acquired during this project will provide a solid foundation as they transition from
academia into the professional world.

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 CONTENTS
Chapter No. Chapter Title Page No.

1.1 Company’s profile 10

Chapter 1 Introduction
1.1.1 Bank’s logo
1.1.2 Mision & vision

1.2 Company History 11

1.3 Organization Chart 12

1.4 Product/ Service Offerings 15

1.5 Central Bank Digital Currency 26

(CBDC)

1.6 Markets Served 28

1.7 Introduction to the 33

Department

1.7.1 Summary of Departmental 33

Activities

Chapter 2 Training 2.1 Training Objectives 34

2.2 Trainee’s Job Profile 34

2.3 Trainee’s Contribution 35

2.4 Learning Outcomes 41

Chapter 3 Business Analysis 3.1 External Environmental 47

Analysis

3.2 Internal Environmental 48

Analysis

3.3 TOWS/SWOT Matrix 49

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Chapter 4 Conclusions 52

Chapter 5 Suggestions 5.1 Suggestions to the Company 53

5.2 Suggestions to the Department 54

References 55

Annexure 56

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 1 CHAPTER – INTRODUCTION

1.1 COMPANY PROFILE

1.1.1 Bank’s logo:

1.1.2
M

ission and Vision:

Mission:

"Creating Value for all its customers, Investors and Employees for being the first choice for
all Stakeholders"

Vision:

"To position PNB as the Most Preferred Bank` for customers, the Best Place to Work In` for
Employees and a `Benchmark of Excellence` for the industry"

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1.2 HISTORY OF THE COMPANY

Punjab witnessed rapid-fire- fire boost after being gripped over by the British in 1849. This
piloted to the emergence of a schooled estate that demanded self-reliance from British
regulation. One of their objects was to substantiate a Swadeshi Bank with Indian capital and
operation, depicting all partitions of the Indian community. This idea was super eminent
indicated by Rai Mool Raj of Arya Samaj, who swallowed in substantiating a public bank
held by Indians since he tasted that Indian capital was being exploited by English banks and
companies for the advantage of the British, while Indians penetrated alone a pint-size interest
on their own capital.

PNB was substantiated on May 19, 1894. The bank berthed on business on April 12, 1895,
with an original council of 7 directors, drawn from various corridors of India, characterized
perceptible faiths and backgrounds but sharing in the common thing of substantiating a public
bank to foster the profitable stakes of the country.

The bank released a tip of 4 after precisely 7 months of operation. Lala Lajpat Rai was the
headmost to open an account with the bank, which was firstly located in a structure opposite
the Arya Samaj Mandir in Anarkali in Lahore.

In the times 1926 to 1936, the banking sedulity educated losses due to the 1929 Wall Street
collision. During this period, the Jalianwala Bagh Committee account was opened and
operated by Mahatma Gandhi and Pandit Jawaharlal Nehru in the flourishing decade.

Between 1941 and 1946, the bank passed conspicuous growth. The number of branches
expounded from 71 to 278, and deposits raised from Rs. 10 crores to Rs. 62 crores. In March
1947, the bank functionaries tagged to dislocate the bank's listed office from Lahore to Delhi.
The bank kept up to preserve caretaker branches despite broad riots directing to the check of
92 services in West Pakistan.

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In 1951, our institution acquired the means and arrears of Bharat Bank Ltd., hardening its
position as the second largest bank in the private sector. latterly, in 1962, it intermingled with
Indo- Commercial Bank.

PNB has been known as a" People's Bank" since its founding in 1895.

Punjab Keshari Lala Lajpat Rai (cheering The Spirit Of Our Founding Father)

1.3 ORGANISATIONAL CHART

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DESCRIPTION

Punjab National Bank, recognized as India’s first Swadeshi Bank, began operations on April
12, 1895, in Lahore. It started with an authorized capital of Rs 2 lakh and a working capital of
Rs 20,000. Visionary leaders and patriots, including Lala Lajpat Rai, Mr. E.C. Jessawala,
Babu Kali Prasono Roy, Lala Harkishan Lal, and Sardar Dyal Singh Majithia, demonstrated
both courage and a spirit of nationalism by founding the first bank operated entirely by
Indians with Indian capital.

BANK PERFORMANCE OVERVIEW

1. Financial Performance as of March 31, 2024

I. Top Line:
 Global Business reached Rs. 23,53,038 crore, an 8.6% increase from Rs. 21,65,844
crore year-over-year.
 Global Deposits stood at Rs. 13,69,713 crore, up 6.9% from Rs. 12,81,163 crore on
March 31, 2023.
 CASA Deposits amounted to Rs. 5,52,499 crore as of March 31, 2024, compared to
Rs. 5,38,015 crore as of March 31, 2023.
 Current Deposits were reported at Rs. 72,201 crore as of March 31, 2024, while
Savings Deposits were Rs. 4,80,298 crore.
 Global Advances were at Rs. 9,83,325 crore, a 11.2% increase from Rs. 8,84,681
crore the previous year.
 Retail Advances amounted to Rs. 2,22,574 crore, reflecting a 12.6% year-over-year
growth.
 Agricultural Advances reached Rs. 1,58,188 crore, up 11.3% from the previous year.
 MSME Advances stood at Rs. 1,39,288 crore, increasing by 7% from Rs. 1,30,178
crore as of March 31, 2023. After reclassification adjustments, the MSME segment
expansion is estimated at 12% YoY.
 Retail Agriculture MSME (RAM) Advances amounted to Rs. 5,20,050 crore, a 10.7%
increase from Rs. 4,69,981 crore YoY. Factoring in reclassifications, RAM growth
stands at 11.7% YoY.

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  RAM accounted for 55.2% of Domestic Advances as of March 31, 2024.

II. Bottom Line:

 Net Profit reached Rs. 8,245 crore in FY 2023-24, marking a 228.8% year-over-year
increase.
 Operating Profit grew by 10.7%, amounting to Rs. 24,931 crore in FY 2023-24
compared to Rs. 22,529 crore in FY 2022-23.
 Net Interest Income was Rs. 40,083 crore for FY 2023-24, up 16.2% from Rs. 34,492
crore in the prior year.

III. Asset Quality:

 As of March 31, 2024, gross NPAs decreased to Rs. 56,343 crore from Rs. 77,328
crore on March 31, 2023.
 Net NPAs fell significantly, from Rs. 22,585 crore as of March 31, 2023, to Rs. 6,799
crore.
 The Net NPA ratio dropped by 199 basis points, moving from 2.72% on March 31,
2023, to 0.73% by March 31, 2024.
 The Provision Coverage Ratio (PCR), including write-offs, increased by 850 basis
points to 95.4% as of March 31, 2024, from 86.9% a year earlier.
 Excluding write-offs, the PCR rose by 1710 basis points, reaching 87.9% as of March
31, 2024, compared to 70.8% on March 31, 2023.

Locations of operations:

Punjab National Bank (PNB) operates 13 Zonal Offices across India, located in:

 Agra
 Bhopal
 Chandigarh
 Delhi
 Jaipur
 Kolkata
 Lucknow
 Ludhiana

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 Meerut
 Mumbai
 Patna
 Shimla
 Chennai

Additionally, the bank has 76 Circle Offices and a total of 6,888 branches nationwide.

1.4 PRODUCT & SERVICES OFFERINGS:

In its Retail Banking segment, PNB provides various

Deposit and Loan schemes (excluding MSME-specific
offerings).

A. Retail Deposit Schemes

I. Savings Deposit Schemes:

i. General Savings Deposit Account:

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 This account type is available for resident individuals (either singly or jointly),
partnerships, trusts, Hindu Undivided Families (HUFs), clubs, societies, and other
institutions as approved by the RBI.

ii. Premium Savings Account:

Individuals (either alone or jointly), associations, trusts, HUFs, clubs, societies, and
similar groups are eligible to open this type of account.

iii. PNB Prudent Sweep for Individuals:

Sweep-in/out transactions are executed when the account balance reaches Rs. 1 lakh,
with further sweeps in increments of Rs. 10,000. Transfers occur on the 5th, 15th, and
25th of each month, or the next working day if these dates fall on holidays.

iv. PNB SF Prudent Sweep for Institutional Accounts:

This system automatically sweeps out funds once the account balance reaches Rs. 10
lakh or increments of Rs. 1 lakh. Transfers are made on a daily basis and can occur
over a period ranging from 7 days to one year.

v. Total Freedom Savings Fund Salary Account:

This account caters to corporate employees, providing a savings fund account that
allows them to receive their salary and access an overdraft facility up to Rs. 50,000 or
the amount of the last pay check, whichever is lower. Personal loan interest rates for
employees offer flexibility with lump-sum repayments at the next salary credit.

vi. High-End Salary Account:

This is an enhanced version of the Total Freedom Salary Account.

vii. Family Protection Account:

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 Individuals interested in insurance products must comply with KYC requirements,
complete an Account Opening Form, and submit necessary documents such as
photographs, identity, and address proof. An insurance application form must
accompany the Account Opening Form for processing.

viii. PNB Junior SF Account:

A minor of any age can open this account with the assistance of a natural or legal
guardian.

ix. PNB Vidyarthi SF Account:

This is a zero-balance, zero-fee savings fund account designed specifically for

students.

x. Basic Savings Bank Deposit Account (BSBDA):

Individuals, either alone or with others, and minors aged 10 or older are eligible to
open this savings fund account.

xi. PNB Rakshak Scheme:

A zero-balance savings account.

xii. PNB Shikshak Sweep Scheme:

All permanent educators employed by recognized schools, colleges, or educational

institutions are eligible to open an account under this scheme.

xiii. Overdraft Facility for Pensioners:

Pensioners receiving pensions through PNB branches can apply for this overdraft
facility, subject to satisfactory account conduct.

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IV. PNB Power Savings:

This scheme allows for joint accounts, with the primary account holder required to be
a woman.

V. PNB Pension Savings Account:

This scheme caters to current and future pensioners with an overdraft facility.

II. Current Accounts:

i. PNB Smart Banking Current Account:

This account offers a variety of features, privileges, and options to meet the diverse
needs of businesses, with or without sweep-in and sweep-out options.

ii. PNB Current Deposit Account:

Designed for frequent transactions, this account suits individuals, firms, HUFs,
companies, and institutions, with no transaction limits. This account is ideal for
business operations and is available at all branches.

III. Fixed Deposit Schemes:

i. PNB Recurring Deposit Scheme (E-RD):

Available exclusively to Internet Banking users.

ii. E-FD Schemes:

The term deposit options include Multi-Benefit, Special, Ordinary (up to Rs. 1 crore),
and PNB Sugam (up to Rs. 10 crore).

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 iii. FD Scheme for Road Accident Victims:

Designed to accommodate court-ordered compensation for road accident victims,

offering fixed deposit accounts with high-interest rates.

iv. Recurring Deposit Scheme:

Minors aged 10 or older can open an account in their name by providing age
verification.

v. PNB Anupam Term Deposit Scheme:

Accounts can be opened with a minimum deposit of Rs. 10,000 and topped up in Rs.
1,000 increments up to a maximum of Rs. 99,000.

vi. PNB Balika Shiksha:

This scheme is for female students who complete Class VIII at Kasturba Gandhi
Balika Vidyalayas and join Class IX at government, government-aided, or local body
schools from the 2008-2009 academic year onward.

vii. PNB Capital Gain Account Scheme:

Individual accounts only; joint accounts are not permitted. This scheme is available at
all branches except rural ones and offers flexible terms from 7 days to 10 years.

viii. PNB Multi Benefit Term Deposit Scheme:

Minimum deposit is Rs. 100, with additional deposits allowed in Rs. 100 increments,
up to Rs. 99.99 lakh.

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 ix. PNB Scheme for Road Accident Victims:

Accounts for children aged 10 or older, or under guardianship, as per court orders.

x. PNB Special Recurring Deposit Product:

Available to government and private institutions, PSUs, corporate bodies, and more.
The account must have a minimum of 10 employees or 75% of eligible employees,
whichever is lower.

xi. PNB Special Term Deposit Scheme:

KYC compliance and information requirements apply.

xii. PNB Sugam Term Deposit Scheme:

Deposit at least Rs. 100, with further deposits in any multiple, up to Rs. 99.99 lakh.

xiii. PNB Swechha Jama Yojna/Flexi RD:

The deposit should be at least Rs. 100, with a maximum monthly deposit of ten times
the core amount.

xiv. PNB Ordinary Term Deposit Scheme:

Start with a minimum deposit of Rs. 100, adding further amounts in convenient
multiples up to Rs. 99.99 lakh.

xv. PNB Varshik Aay Yojana (VAY) Deposit Scheme:

A minimum deposit of Rs. 10,000, with subsequent amounts in Rs. 1,000 increments,
up to Rs. 99.99 lakh. Terms range from 24 months up to 120 months.

xvi. PNB Tax Saver Fixed Deposit Scheme:

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 Start with a minimum of Rs. 100, up to Rs. 1.5 lakh per financial year.

xvii. Prospective Sr. Citizen Scheme:

Minimum deposit of Rs. 100, with increments in Rs. 1, up to Rs. 99,99,999.

xviii. PNB MIBOR Linked Notice Deposit Scheme:

A deposit product with interest rates linked to the Mumbai Inter-Bank Offer Rate
(MIBOR).

xix. PNB Floating Rate Fixed Deposit Scheme:

Minimum deposit is Rs. 100, with increments in Rs. 1, up to Rs. 99,99,999.

xx. PNB Bulk Fixed Deposit Scheme (Above Rs. 10 Crore):

An account can be opened with a minimum of Rs. 10 crore and increased in Re. 1
increments.

xxi. PNB Capital Gain Account Scheme:

For individuals depositing capital gains, available at all branches except rural ones,
with terms from 7 days to 10 years.

B. RETAIL LOANS SCHEMES

I. Housing Loan Scheme

i. PNB Pride Housing Loan for Government Employees:

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 This scheme provides affordable home loans to government employees to help them
purchase or build a house.

ii. General Housing Loan:

Available to the public, this scheme offers loans at favorable rates for home
acquisition or construction.

iii. Housing Loan under Pradhan Mantri Awas Yojana (PMAY):

This program supports economically disadvantaged individuals, including low and

middle-income groups, by offering housing loans at reduced interest rates.

iv. PNB Gen-Next Housing Finance:

This scheme is tailored for young professionals, including IT and public sector
employees, to enable them to own a comfortable home.

II. Vehicle Loan Schemes

i. PNB Pride Car Loan for Government Employees:

Provides government employees with easy access to financing for car purchases at
attractive rates.

ii. PNB Saarthi:

A loan scheme for the public to purchase two-wheelers like scooters, motorcycles,
and mopeds, with the requirement of vehicle registration.
iii. PNB Power Ride:
This program assists women in acquiring two-wheelers, supporting their mobility
with affordable loans.

iv. PNB Car Loan:

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 Offers loans for new or pre-owned vehicles for personal or business use. The
minimum qualifying monthly income is Rs. 20,000.

III. Education Loan Schemes

i. PNB Saraswati:
This scheme supports students pursuing higher education in India by covering
expenses for recognized graduate and post-graduate programs.

ii. PNB Pratibha:

Focuses on providing financial aid to students attending premier institutions, covering
tuition fees, insurance, deposits, and other related costs.

iii. PNB Udaan:

Assists students studying abroad by financing job-oriented professional and technical
courses, including those recognized internationally.

iv. PNB Kaushal:

Aimed at skill development, this scheme is available to students enrolled in ITIs,
polytechnics, and other recognized training programs under NSDC or state skill
missions.

v. PNB Honhaar:
This education loan scheme covers a wide range of educational expenses for higher
studies, with adjustments for any scholarships the student may receive.

vi. PNB Bihar Student Credit Card Scheme:

Provides concessional education loans to students and PwDs in Bihar pursuing higher
education under PNB’s education loan schemes.

vii. Padho Pradesh:

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 Offers an interest subsidy on education loans for minority students pursuing studies
abroad.

viii. Dr. Ambedkar Central Sector Scheme:

Available to students from OBC and EBC categories, this scheme provides interest
subsidies on educational loans for overseas studies.

ix. CGFSEL and CGFSSD:

These credit guarantee fund schemes provide collateral-free loans for education and
skill development.

IV. Personal Loan Schemes

i. Personal Loan for Public:

This scheme is open to government employees, professionals, and salaried individuals
for purposes like medical expenses, marriage costs, and travel.

ii. Personal Loan for Pensioners:

Designed for pensioners, this scheme supports personal expenses, including medical
bills, with loan amounts adjusted based on age.

iii. PNB Baghban (Reverse Mortgage Scheme):

A reverse mortgage option for senior citizens owning property, helping them generate
income to support their living expenses.

iv. Advance Against Gold and Jewelry:

This scheme allows customers to use gold as collateral for loans, which can be used
for personal or agricultural expenses.

V. Miscellaneous Loans

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 i. Loan Against Immovable Property:
A loan secured against property, suitable for personal and business use, available to
government employees and verified income tax payers.

ii. Retail Loans for BSNL Employees:

PNB offers various tailored financial products for BSNL employees, including home
loans, overdraft facilities, car loans, two-wheeler financing, and personal loans, all
with competitive terms.

1.5 Central Bank Digital Currency (CBDC)

Central Bank Digital Currency (CBDC):

Overview

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Central Bank Digital Currencies (CBDCs) represent a digital adaptation of traditional paper
money. Unlike cryptocurrencies, which often operate independently of regulatory bodies,
CBDCs are officially issued and supported by central banks, carrying the same value as
traditional fiat currency. They can be exchanged one-to-one with cash, as fiat currencies are
national currencies not tied to commodities like gold. CBDCs are designed to be transacted
through block chain-based digital wallets. While CBDCs take inspiration from Bitcoin, they
differ from decentralized cryptocurrencies as they are state-issued and hold 'legal tender'
status.

Purpose of the Digital Rupee

India’s Digital Rupee aims to foster greater financial inclusion by providing easier access to
formal financial services. It also seeks to enhance transactional efficiency with faster, more
secure digital payments. As the country transitions towards a digital-first economy, the
Digital Rupee aligns with technological advancements, reduces dependency on physical cash,
and enables improved regulatory control over transactions to combat potential illegal
activities.

Functionality of the Digital Rupee

Known as the e-rupee, India’s Digital Rupee is issued and overseen by the Reserve Bank of
India (RBI). This digital currency utilizes blockchain or distributed ledger technology,
ensuring secure, transparent transactions through a decentralized and tamper-proof ledger
system. The e-rupee aims to streamline the financial system by providing a modern, efficient
way to handle transactions.

Categories of CBDCs

1. Retail CBDCs: Used by the general public for everyday transactions, much like cash.

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 2. Wholesale CBDCs: Intended for financial institutions for interbank settlements and
wholesale transactions.

Digital Rupee Transactions

 Person-to-Person: Transfers can be made to another person’s wallet using a QR code

or mobile number.
 Person-to-Merchant: Payments are made by scanning the merchant's QR code at
points of sale.

Punjab National Bank’s Role in CBDC Implementation

Punjab National Bank (PNB) has been actively involved in the CBDC initiative, with notable
milestones including the launch of its “PNB Digital Rupee” app on January 17, 2023, and the
integration of UPI QR code interoperability on September 2, 2023, allowing seamless CBDC
transactions. As a CBDC intermediary, PNB manages digital wallets, enabling user access
and use of digital currencies. Its role is critical as CBDCs continue to expand, affecting both
the banking sector and the broader financial landscape.

Impact of PNB on CBDC Distribution and Access

1. User Accessibility: PNB offers a secure, familiar platform for accessing CBDCs,
allowing users to transact using their existing bank accounts and the PNB ONE app.
2. Promoting Financial Inclusion: PNB can leverage its extensive network to extend
CBDC access to individuals who might not have traditional banking services.
3. Considerations of Centralization and Privacy: With commercial banks as
intermediaries, there is a potential risk related to data privacy and reduced system
decentralization, as banks may have access to sensitive financial information.

PNB has also taken a proactive approach by compensating employees with CBDCs,
rewarding those with the highest transaction volume. This initiative not only underscores the

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bank's commitment to digital currency but also promotes a culture of adoption and
competency within its workforce.

1.6 MARKETS SERVED

Punjab National Bank (PNB) serves a broad range of markets, catering to the diverse
financial needs of individuals, businesses, and institutions. Here are the key markets served
by PNB:

1. Retail Banking

i. Individuals:

PNB offers various personal banking services, including savings and current accounts,
fixed deposits, personal loans, home loans, auto loans, and credit cards. It also
provides digital banking options, such as mobile banking and internet banking,
through platforms like PNB ONE.

ii. Housing and Vehicle Loans:

To meet the housing needs of customers, PNB offers a range of home loan products,
including specialized schemes under the Pradhan Mantri Awas Yojana (PMAY).
Additionally, it offers loans for purchasing vehicles, both four-wheelers and two-
wheelers.

iii. Education Loans:

The bank provides financial support to students for higher education, both in India
and abroad, through various education loan schemes like PNB Saraswati, PNB
Pratibha, and PNB Udaan.

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 2. Corporate Banking

i. Small and Medium Enterprises (SMEs):

PNB offers tailored banking solutions for SMEs, including working capital finance,
term loans, trade finance, and business loans. Its services help SMEs manage cash
flow, expand operations, and meet day-to-day financial needs.

ii. Large Corporations:

For larger businesses, PNB provides services such as corporate loans, project finance,
structured finance, and debt syndication. The bank also offers cash management
services and treasury solutions to meet the specific needs of corporate clients.

iii. Agriculture and Rural Banking:

PNB supports the agriculture sector through various loan schemes for farmers,
including crop loans, tractor loans, and allied agricultural loans. The bank also
provides financial products for rural development, targeting self-help groups and rural
entrepreneurs.

3. International and NRI Banking

i. NRI (Non-Resident Indian) Services:

PNB offers dedicated products and services for NRIs, including NRE (Non-Resident
External) and NRO (Non-Resident Ordinary) accounts, FCNR (Foreign Currency
Non-Resident) deposits, and NRI home loans. The bank provides convenient digital
banking facilities to manage NRI accounts from abroad.

ii. International Business:

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 PNB has a significant presence in international markets, with branches in countries
like the UK, UAE, Hong Kong, and more. It offers trade finance, remittances, and
foreign exchange services to facilitate cross-border business for Indian companies and
support global clients with operations in India.

4. Government and Public Sector Services

i. Government and Defence:

PNB provides salary accounts, pensions, and personal loans to employees of the
central and state governments, public sector undertakings, and the armed forces.
Additionally, it offers customized schemes like the PNB Pride Housing Loan for
government employees.

ii. Social Welfare Schemes:

The bank actively participates in various government schemes, such as the Pradhan
Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Suraksha Bima Yojana
(PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), and the Atal
Pension Yojana. These schemes aim to enhance financial inclusion and provide social
security.

5. Digital and E-Banking Services

i. Digital Wallet and Payments:

With the rise of digital payments, PNB has introduced digital wallets, UPI services,
and e-payment solutions, making transactions more accessible for its customers. It
also launched the “PNB Digital Rupee” app as part of the Central Bank Digital
Currency (CBDC) initiative.

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ii. E-commerce and Online Banking:

PNB supports digital commerce through its online banking platform, allowing
customers to make online purchases, pay bills, and conduct a wide range of
transactions securely.

6. Treasury and Investment Services

i. Investment Products:

PNB provides investment opportunities, including mutual funds, fixed deposits, and
bonds. It also offers wealth management services to help customers diversify their
portfolios and achieve their financial goals.

ii. Treasury Operations:

For institutional clients and high-net-worth individuals, PNB offers treasury services,
including forex trading, derivatives, and investment advisory services. The bank’s
treasury services cater to businesses involved in import-export activities and those
seeking hedging solutions.

7. Specialized and Niche Markets

i. Financial Inclusion and Rural Markets:

PNB’s focus on financial inclusion has led to dedicated products for rural and
unbanked populations, like microfinance and agricultural loans. The bank collaborates
with self-help groups and cooperatives to extend credit and savings facilities to
underserved communities.

ii. Green and Sustainable Finance:

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 PNB also aims to support environmentally friendly projects and green finance
initiatives, funding renewable energy projects, energy-efficient technology, and other
sustainable businesses.

In summary, PNB’s diversified market approach enables it to serve a wide range of

customers across multiple sectors. This comprehensive service range helps PNB maintain its
position as a leading banking institution in India, catering to the unique needs of individuals,
businesses, and government organizations.

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1.7 INTRODUCTION TO THE DEPARTMENT

 Introduction to the Finance Department of PNB Circle Office Patna

As an intern in the Finance Department of Punjab National Bank (PNB) Circle Office Patna, I
am gaining invaluable insights into the workings of the financial sector and the specific
operations of PNB. The Finance Department plays a critical role in managing the bank’s
financial resources, ensuring compliance with regulations, and optimizing financial
performance.

 Key Functions of the Finance Department:

1. Financial Planning and Analysis: The department is responsible for budgeting,

forecasting, and analysing financial data to support strategic decision-making.
2. Cost Management: It involves monitoring and controlling costs to improve efficiency
and profitability.
3. Regulatory Compliance: Ensuring that the bank adheres to financial regulations and
reporting requirements set by regulatory authorities.
4. Financial Reporting: Preparing accurate financial statements and reports that reflect the
bank’s financial position and performance.
5. Risk Management: Identifying, assessing, and mitigating financial risks to safeguard the
bank’s assets and reputation.
6. Funding and Liquidity Management: Managing the bank's liquidity position and
sourcing funds to meet operational needs.

 Learning Opportunities:

As an intern, I am exposed to various financial processes and systems, collaborating with

experienced professionals in the field. This experience is enhancing my understanding of
financial principles, banking operations, and the strategic role of finance within a major
banking institution.

Overall, my internship at PNB Circle Office Patna is a valuable opportunity to develop

practical skills and gain a deeper understanding of the finance sector.

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 2 CHAPTER- INTERNSHIP PROFILE:

2.1 Training objective

The objective of the summer internship program is to provide a comprehensive understanding

of the evolving dynamics between Central Bank Digital Currency (CBDC) and the retail
banking system in India. This includes:

 Analyzing the role of CBDC in enhancing the efficiency, security, and transparency
of the retail banking system.
 Understanding the impact of CBDC on traditional banking operations, financial
inclusion, and customer experience.
 Examining regulatory frameworks, challenges, and opportunities associated with the
introduction of CBDC in India.
 Developing insights on how CBDC can reshape payment systems, credit structures,
and overall financial stability within the Indian banking ecosystem.
 Applying analytical tools and financial models to evaluate the implications of CBDC
on digital transactions and banking services.

This study aims to equip the intern with hands-on experience and critical thinking skills to
navigate and contribute to the future of banking in the digital currency era.

2.2 Trainee’s job profile

Industry Mentor Details- Name, Designation, Department, email- ID,
mobile:
Name Mr. Abhijeet Anand
Designation Manager
Department Marketing
Contact email [email protected]
Mobile 9129249302

Details of Internship mentor

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2.2.1 Location of Internship:

 PATNA

2.2.2 Detail of Task:

 Gained insights into the organization.

 Understood the policies and procedures related to loans.
 Learned about the loan application process.
 explored various deposit and loan schemes.
 Studied Central Bank Digital Currency.
 Acquired knowledge about processing pay-outs.

2.3 Trainee’s Contribution

Time Frame- Start Date, completion date, Gantt chart (Project Chart
Line), Weekly status:

 Start Date – 05th June 2024

 Completion date – 06th July 2024

1. Report
on Weekly

Progress

Name: Riya Kumari

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Week No. WPR: 1 Remaining WPRs: 4

Registration Number: MBA/15016/23

Program: MBA in Finance and Business Analytics

Summer Internship Focus: Finance

First-Week (1st) Summary of Week 1

5th June 2024 – 8th I collected information regarding the Punjab National Bank (PNB).
June 2024

2. Report on Weekly Progress

Name: Riya Kumari

Week No. WPR: 2 Remaining WPRs: 3

Registration Number: MBA/15016/23

Program: MBA in Finance and Business Analytics

Summer Internship Focus: Finance

Second-Week(2nd ) Summary of Week 2

10th June 2024 – comprehend all products and services offered by PNB in the retail
15th June 2024 sector

3. Report on Weekly Progress

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Name: Riya Kumari

Week No. WPR: 3 Remaining WPRs: 2

Registration Number: MBA/15016/23

Program: MBA in Finance and Business Analytics

Summer Internship Focus: Finance

Third-Week(3rd ) Summary of week 3

17th June 2024 – Comprehend all loan schemes and deposit schemes by PNB in the
22nd June 2024 retail sector.

4. Report on Weekly Progress

Name: Riya Kumari

Week No. WPR:4; Remaining WPRs: 1

Registration Number: MBA/15016/23

Program: MBA in Finance and Business Analytics

Summer Internship Focus: Finance

Forth –Week (4th ) Summary of Week 4

24th June 2024 – Comprehend the workings of central bank digital currency
29th June 2024

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5. Report on Weekly Progress

Name: Riya Kumari

Week No. WPR: 5; Remaining WPRs: 0

Registration Number: MBA/15016/23

Program: MBA in Finance and Business Analytics

Summer Internship Focus: Finance

Fifth-Week (5th ) Summary of Week 5

1st July 2024 – 6th Making pay-outs
July 2024

2.3.1 Work profile & key observations:

2.3.1.1 Work Description:

The role within Punjab National Bank (PNB) involves an in-depth understanding of various
banking functions, focusing primarily on retail banking, commission payouts, and the
implementation of Central Bank Digital Currency (CBDC).

Retail Banking: Retail banking, commonly known as consumer banking, is centered on

delivering a wide range of financial services directly to individual clients rather than to
businesses or corporate entities. The services provided encompass essential banking functions
such as savings and checking accounts, which allow customers to manage their funds and
make transactions conveniently. Additionally, PNB offers mortgages to assist customers in
purchasing homes, as well as personal loans that cater to diverse financial needs, from
education expenses to personal projects. The bank also provides debit and credit cards,
facilitating smooth financial transactions and empowering customers to manage their

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spending effectively. This sector of banking plays a crucial role in everyday financial
activities and is distinct from other forms of banking, such as investment or commercial
banking, which primarily target larger businesses or complex financial transactions.
Understanding the intricacies of retail banking services is essential for ensuring customer
satisfaction and loyalty, as well as for adapting to the evolving financial landscape.

Pay-outs: The circle office at PNB holds significant responsibility in managing the
commission structure related to car loans and sales initiatives. This includes approving
commission payments for direct sales executives and car loan dealers, with a structured
commission rate of 0.75% for direct sales executives and 1% for car loan dealers. It is
crucial that the total commission paid out does not exceed 1.75% of the car loan amount,
balancing the need to incentivize sales while maintaining the bank's profitability. The role
requires diligent oversight to ensure compliance with these commission guidelines, as well as
regular monitoring to prevent any discrepancies or potential fraud. This hands-on experience
in managing pay-outs provides insight into how financial institutions incentivize their sales
force while also adhering to regulatory requirements.

Central Bank Digital Currency (CBDC): PNB is strategically positioned to be at the

forefront of the rollout of Central Bank Digital Currencies (CBDCs), reflecting the bank's
commitment to innovation in the financial sector. One of the notable initiatives is a program
that enables employees to receive their commissions in CBDC, which not only familiarizes
them with digital currency but also promotes its practical use within the bank's operations.
Furthermore, PNB incentivizes employees by rewarding those who achieve the highest
transaction volumes in CBDC, fostering a competitive environment that encourages
proficiency in digital finance. This initiative aims to enhance the bank's digital transformation
efforts, equipping employees with essential skills and knowledge needed to navigate the
evolving landscape of digital currency and payments. As PNB continues to embrace CBDCs,
it aims to contribute to a more efficient, secure, and inclusive financial ecosystem, aligning
with broader national goals of digitization and innovation in banking.

Overall, this role provides a comprehensive exposure to the inner workings of retail banking,
the strategic management of pay-outs, and the ground-breaking potential of CBDCs,
positioning interns to gain invaluable experience and insights that are vital for their future
careers in finance.

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2.3.1.2 Practices Followed

In Punjab National Bank (PNB), essential practices focus on retail banking, commission pay-
outs, and the implementation of Central Bank Digital Currency (CBDC). In retail banking,
staff provide personalized customer service by understanding client needs and guiding them
through various financial products, such as savings accounts, mortgages, and personal loans.
This customer-centric approach is complemented by technology-driven solutions that
enhance accessibility and efficiency. For commission pay-outs, the circle office adheres to a
structured framework, ensuring direct sales executives receive 0.75% and car loan dealers 1%
of loan amounts, while total commissions do not exceed 1.75%. Regular audits and
compliance training promote ethical practices in handling commissions. With CBDC, PNB
fosters innovation by allowing employees to receive commissions in digital currency and
providing training on its use, encouraging higher transaction volumes through rewards.
Together, these practices enhance customer service, ensure compliance, and drive digital
transformation, positioning PNB as a leader in the evolving financial landscape

2.3.1.3 Key Challenges Faced

 Rapid System Changes:

Frequent updates in bank systems and regulations made it challenging to keep up and
complete tasks effectively.

 High Expectations:

The pressure to meet organizational demands often felt overwhelming and impacted
my ability to perform at my best.

 Insufficient Training Duration:

The five-week training period proved inadequate for fully understanding the
complexities of my assigned responsibilities, leaving me feeling unprepared.

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2.4 Learning outcomes
Value Addition & Learning: includes

2.4.1 Major Learning during their SIP tenure:

1. Comprehensive Understanding of PNB:

 Developed an in-depth understanding of Punjab National Bank's structure,
operations, and core values.
 Learned about the bank’s history, mission, and vision, and how these elements
shape its strategic direction.
2. Loan Policies and Procedures:
 Gained insights into various loan products offered by PNB, including the
eligibility criteria, application processes, and documentation requirements.
 Understood the importance of assessing creditworthiness and the role of risk
management in loan approvals.
3. Diverse Deposit and Loan Schemes:
 Explored the different types of deposit schemes available for customers,
including savings accounts, fixed deposits, and recurring deposits.
 Learned about various retail loan schemes such as housing loans, vehicle
loans, and personal loans, along with their unique features and benefits.
4. Central Bank Digital Currency (CBDC):
 Acquired knowledge about the concept of CBDC, its significance, and its
implications for the banking sector.
 Examined how PNB is integrating CBDC into its operations, particularly in
making digital payouts and enhancing transaction efficiency.
5. Practical Experience in Financial Operations:
 Gained hands-on experience in making payouts and managing transactions,
understanding the processes involved in daily banking operations.
 Learned to navigate banking software and tools used in financial transactions
and customer service.

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 6. Regulatory Compliance:
 Understood the regulatory framework governing the banking industry in India,
including compliance with guidelines set by the Reserve Bank of India (RBI).
 Learned about the importance of adhering to anti-money laundering (AML)
and Know Your Customer (KYC) regulations in banking operations.
7. Financial Inclusion Initiatives:
 Explored PNB’s efforts to promote financial inclusion through various
products and services aimed at underserved communities.
 Gained insights into how digital banking and CBDC can enhance access to
financial services for a broader population.
8. Team Collaboration and Communication Skills:
 Worked closely with team members and mentors, enhancing collaboration
skills and the ability to communicate effectively in a professional
environment.
 Participated in meetings and discussions, learning to articulate ideas and
contribute to team objectives.
9. Analytical Skills Development:
 Improved analytical skills by evaluating financial data, assessing market
trends, and understanding customer behavior.
 Gained experience in interpreting financial reports and using data to make
informed decisions.
10. Adaptability to Digital Transformation:
 Recognized the rapid digital transformation occurring in the banking industry
and the need to adapt to new technologies and practices.
 Developed a forward-thinking mindset, preparing for future challenges and
opportunities in the finance sector.

These learnings have provided a solid foundation for my professional growth and have
equipped me with the necessary skills and knowledge to succeed in the finance industry.

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2.4.2 Usefulness of internship with future perspective:

1. Understanding CBDC Implementation:

 Gained insights into how Central Bank Digital Currency (CBDC) is integrated
into the banking system, particularly in PNB's operations.
 Observed the pilot programs launched by the Reserve Bank of India (RBI) and
their impact on enhancing cross-border payments.
2. Operational Knowledge of Digital Transactions:
 Acquired knowledge about the processes involved in making payouts using
digital currencies.
 Learned about the technological infrastructure supporting CBDC transactions,
including the use of blockchain technology.
3. Enhanced Transaction Efficiency:
 Studied how CBDC can streamline payment processes, making transactions
faster and more secure.
 Understood the potential of reducing transaction costs and time delays
associated with traditional banking methods.
4. Financial Inclusion Initiatives:
 Recognized the role of CBDC in promoting financial inclusion by providing
access to digital payment systems for underserved populations.
 Explored how PNB’s initiatives in digital currency can reach individuals
without traditional banking services.
5. Regulatory and Compliance Framework:
 Gained insight into the regulatory aspects of CBDC, including compliance
with RBI guidelines and monitoring of digital transactions.
 Understood the importance of maintaining customer privacy and security in
the digital banking landscape.
6. Impact on Retail Banking:
 Analyzed how the introduction of CBDC could transform retail banking,
including changes in customer interactions and service delivery.
 Discussed the potential for new business models and revenue streams through
the integration of digital currencies.

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 

7. Skills Development:
 Developed analytical skills in assessing the financial implications of adopting
CBDC within the retail banking sector.
 Improved technical skills related to digital payment systems and their
operational frameworks.
8. Future Career Prospects:
 Positioned to explore career opportunities in the fintech sector, particularly in
roles focused on digital banking, payment systems, and financial innovation.
 Prepared to contribute to the evolution of banking practices in a digital
economy, leveraging the knowledge gained during the internship.
9. Networking Opportunities:
 Built professional relationships with industry mentors and colleagues,
providing a network of contacts for future career advancements.
 Engaged in discussions with finance professionals about the future trends in
banking and the implications of digital currencies.
10. Contribution to Industry Trends:
 Gained a broader perspective on the future of banking in India, particularly
regarding digital transformation and the role of CBDC.
 Recognized the importance of being adaptable and forward-thinking in a
rapidly evolving financial landscape.

This detailed understanding of CBDC and its implications for the retail banking system has
equipped me with the knowledge and skills necessary to navigate future challenges and
opportunities in the finance sector.

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 3 CHAPTER – BUSINESS ANALYSIS

3.1 Company financial annual report (financial performance)

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Page 46 of 57
 Punjab National Bank (PNB) has shown resilience in its
financial performance, as reflected in its recent annual reports. The bank has demonstrated
steady growth in total income, driven by an increase in interest income and non-interest
income. Additionally, PNB has made significant strides in reducing its non-performing assets
(NPAs), improving its asset quality. The bank's net profit has seen a positive trend, indicating
effective management and operational efficiency. Furthermore, PNB's capital adequacy ratio
remains robust, ensuring compliance with regulatory requirements and providing a strong
foundation for future growth. Overall, PNB's financial performance reflects a balanced
approach to risk management and strategic growth initiatives in a competitive banking
environment.

3.2 Market share and positions and competitors of the company in the
industry:

Punjab National Bank (PNB) holds a significant position in the Indian banking sector,
characterized by its extensive market share among public sector banks. As of recent data,

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PNB ranks among the top banks in India, with a notable share in both retail and corporate
banking segments. The bank's primary competitors include State Bank of India (SBI), Bank
of Baroda, and Canara Bank, which also dominate the public sector space. In the private
sector, banks like HDFC Bank and ICICI Bank pose considerable competition, particularly in
the retail banking domain. PNB's focus on enhancing digital services and financial inclusion
initiatives aims to strengthen its market position and effectively compete in an evolving
financial landscape.

3.3 External Environmental Analysis of Punjab National Bank (PNB):

1. Economic Factors: The Indian economy's growth trajectory directly impacts PNB's
performance. Factors such as GDP growth, inflation rates, and interest rates influence
lending practices and deposit mobilization. Economic reforms and government
initiatives like "Make in India" can enhance investment opportunities, benefiting
banks.
2. Political Factors: Government policies, regulations, and stability play a crucial role
in the banking sector. Initiatives aimed at enhancing financial inclusion, such as the
Pradhan Mantri Jan Dhan Yojana, create opportunities for PNB to expand its
customer base. However, political instability can lead to uncertainty and affect
banking operations.
3. Social Factors: Increasing financial literacy and a shift toward digital banking among
consumers are significant trends. PNB can leverage this by enhancing its digital
offerings and targeting the younger demographic. Additionally, rising awareness of
social responsibility can push PNB to engage more in community development and
sustainability initiatives.
4. Technological Factors: Rapid advancements in technology, particularly in fintech,
are reshaping the banking landscape. PNB must invest in digital transformation,
cybersecurity, and innovative banking solutions to stay competitive. Collaborations
with fintech firms can also enhance service delivery and customer experience.
5. Environmental Factors: With a growing emphasis on sustainability, PNB faces
pressure to adopt environmentally friendly practices and promote green financing.

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 Engaging in sustainable projects can improve its brand image and attract
environmentally conscious customers.
6. Legal Factors: Compliance with regulations set by the Reserve Bank of India (RBI)
and other regulatory bodies is vital for PNB. Any changes in banking laws or
financial regulations can impact its operations, requiring adaptability and prompt
response to maintain compliance.

In summary, PNB operates in a dynamic external environment influenced by economic,

political, social, technological, environmental, and legal factors. By proactively addressing
these external challenges and opportunities, PNB can strengthen its market position and drive
sustainable growth.

3.4 Internal Environmental Analysis of Punjab National Bank (PNB):

1. Organizational Structure: PNB has a well-defined hierarchical structure that

facilitates efficient decision-making and operations. With numerous branches across
India and a strong presence in the international market, the bank's structure supports
both retail and corporate banking functions, ensuring specialized services.
2. Financial Performance: PNB has shown resilience in its financial performance
despite facing challenges such as high Non-Performing Assets (NPAs). The bank's
initiatives to improve asset quality and recover dues have contributed to its financial
stability. Consistent efforts to enhance its profitability through diversified revenue
streams are vital for future growth.
3. Human Resources: PNB boasts a skilled workforce with extensive experience in the
banking sector. The bank emphasizes employee training and development, fostering a
culture of continuous learning. However, attracting and retaining talent in a
competitive environment is crucial for maintaining service quality and innovation.
4. Technological Infrastructure: PNB has made significant investments in digital
banking and technology-driven solutions. The introduction of mobile banking apps,
internet banking, and various digital payment options has enhanced customer
convenience and engagement. Continuous upgrades to cybersecurity measures are
essential to safeguard customer data and maintain trust.

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 5. Customer Base: PNB serves a diverse customer base, including individuals, small
businesses, and large corporations. The bank's focus on financial inclusion through
initiatives like the Pradhan Mantri Jan Dhan Yojana has expanded its reach,
particularly in underserved areas. Understanding customer needs and preferences is
vital for tailoring products and services.
6. Product and Service Portfolio: PNB offers a comprehensive range of financial
products and services, including retail banking, corporate banking, and wealth
management. The bank's commitment to innovation and the introduction of new
products align with market trends, helping to meet evolving customer demands.
7. Brand Image and Reputation: PNB has a strong brand presence, backed by its long
history and credibility in the banking sector. However, addressing past issues related
to fraud and transparency is crucial for rebuilding trust and enhancing its reputation
among stakeholders.

In summary, PNB's internal environment reflects a blend of strengths, such as its

organizational structure, financial performance, and technological advancements, along with
challenges related to talent retention and reputation management. Leveraging these internal
factors effectively will be essential for the bank's future growth and success.

3.5 SWOT analysis of PNB:

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SWOT Analysis of Punjab National Bank (PNB):

Strengths: PNB has a strong brand reputation and extensive branch network, which enhances
its customer reach and service delivery. Its diverse range of financial products and services
caters to various customer segments, bolstering its market position.

Weaknesses: The bank has faced challenges with non-performing assets (NPAs) in the past,
which can impact profitability and investor confidence. Additionally, reliance on traditional
banking models may hinder agility in adapting to rapidly changing market trends.

Opportunities: The growing emphasis on digital banking and financial inclusion presents
significant opportunities for PNB to enhance its service offerings and capture a larger
customer base. Expanding its presence in underbanked regions and leveraging technology can
drive growth.

Threats: Intense competition from both public and private sector banks, as well as emerging
fintech firms, poses a threat to PNB’s market share. Economic fluctuations and regulatory
changes may also impact its operations and profitability.

Overall, PNB's strong foundation provides it with the potential to capitalize on emerging
opportunities while addressing its weaknesses and external threats.

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Balance sheet of PNB:

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 4 CONCLUSION

In conclusion, retail banking, also known as consumer banking, plays a vital role in providing
essential financial services to individual customers, including savings accounts, loans, and
payment cards. This sector differentiates itself from investment and wholesale banking by
focusing on personal financial needs rather than corporate or institutional clients. Effective
management of disbursements, ensuring that commission rates are within prescribed limits,
reflects meticulous oversight essential for operational integrity. Furthermore, Panjab National
Bank's proactive approach to embracing Central Bank Digital Currencies (CBDCs) highlights
its commitment to innovation and adapting to evolving financial landscapes. As employees
engage with CBDC initiatives and gain proficiency, the bank sets a precedent for industry
leadership in digital currency integration. Understanding the organization's policies, loan
processes, and financial products underscores the importance of customer-centric strategies
and operational excellence within retail banking.

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 5 CHAPGTER- Recommendations & Suggestions

During my internship, I noticed the following key points:

 A considerable number of employees engage in lengthy, non-work-related

conversations.
 These conversations often occur during work hours, leading to frequent
interruptions.
 The overall atmosphere, while friendly, can become distracting, especially for
tasks that require concentration.

To improve productivity and reduce excessive conversations, I suggest the following

measures:

1. Designate specific break times:

 Ask employees to have non-work-related conversations during designated breaks.

 Schedule short, periodic breaks for social interactions without affecting work.

2. Establish quiet zones:

 Create areas in the office where conversations are kept to a minimum.

 Encourage employees to use these areas when they need to focus on tasks that
require uninterrupted attention.

3. Raise awareness:

 Hold workshops or training to emphasize the importance of balancing social

interaction with professional responsibilities.
 Educate employees about the impact of excessive talking on individual and team
productivity.

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4. Set clear guidelines:

 Develop and communicate clear rules on workplace behaviour, especially regarding

limiting non-work-related conversations during productive hours.
 Ensure all employees understand and follow these guidelines

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 References

1. PNBOA’S Loan Compendium. (7th June 2024 ; 1:00 pm)

https://www.pnbindia.in/deposit.html

2. PNB Annual Reports (10th June 2024 ; 3:00 pm)

https://www.pnbindia.in/annual-reports.html

3. PNB company profile (14th June 2024 ; 4:00 pm)

https://www.pnbindia.in/corporate-mission.html

4. Books of Instruction on loans (PNB) (25th June 2024 ; 12:00 pm)

https://en.wikipedia.org/wiki/Punjab_National_Bank

5. Books of Instruction on loans (PNB) (3th July 2024 ; 1:00 pm)

http://www.moneycontrol.com/stocks/sectors/banks-public-sector.html

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ANNEXURE

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