PNB &amp 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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INTRODUCTION
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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
At the IDRBT Banking Technology awards for the

"Best IT Team of the Year Award" year 2005-06.
SKOTCH Challenger Award for Change Management for the year 2005-06
Best IT User in Banking & Financial
by NASSCOM in partnership with Economic Times
Services Industry - 2004
for Excellence in Corporate Governance - 2005 by

Golden Peacock Award
Institute of Directors
FICCI's Rural Development Award for Excellence in Rural Development - 2005
Skotch Challenger Award for

for becoming a pioneer in Public Banks - 2005
Exemplary use of Technology
Golden Peacock National Training -
by Institute of Directors
2004 & 2005
National Award for Excellence in SSI Ranked 2nd for 4 consecutive years - 2002, 2003,
Lending 2004 & 2005
Banking Technology Awards 2004

Runner up in 'Best IT Team of the Jointly Adjudged by IBA, Finacle & TFCI
Year Award 2005'
for excellence in export performance for 3

consecutive years 2001, 2002 & 2003
Niryat Bandhu Gold Trophy
by Federation of Indian Exporters Organization
(FIEO)
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by the leading Financial Daily The Economic Times,

21st Amongst Top 500 Companies
June 2005
9th amongst India's Top 50 Most

A.C Nielson Survey, The Economic Times Dec 2004
Trusted Service Brands
3rd Rank amongst Banking Sector in

India The Bankers' Almanac, January 2006
323rd Rank in the World
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
-Demand Deposit
 Current Deposit
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 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
- ATM’s
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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
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.
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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
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?
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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

Shri O.P. Bhatt
1.
Chairman
Shri S.K. Bhattacharyya
2.
MD & CC&RO
Shri R. Sridharan
3.
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
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.
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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.
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
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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
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:
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• 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
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
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• 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.
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
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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: -
Transaction ATMs of Other banks under

Sharing Maestro/ Master
network banks Card/ Cirrus
network
Cash Rs. 25/- * Rs. 50/-*
Withdrawal
Balance Rs. 12/-* Rs. 12/-*
Inquiry
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.
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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 SMS Text Send SMS to

Provider
Airtel RC (AMOUNT) PIN 535
BPL RC SBI (AMOUNT) 140
PIN
Vodafone RC SBI (AMOUNT) 147
PIN
IDEA RC SBI (AMOUNT) 575
PIN
• Pay MTNL, Mumbai bills through State Bank ATMs

• Payment of SBI Credit Card bills
• 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.
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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.
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 Transactions at ATMs of

Banks under arrangements other Banks under Maestro /
for Bilateral Sharing of ATM Master Card/ Cirrus network
Network (In India)
(A) (B)
Cash Withdrawal Rs. 25/- * Rs. 50/- *
Balance Inquiry Rs. 12/- * Rs. 12/- *
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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:
• 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/-
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• 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
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
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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.
• In – depth financial information could not be attained due to the policies of the
company.
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REVIEW
OF
LITERATURE
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).
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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.
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
26
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.
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
27
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:
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.
28
• 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
RESEARCH
METHODOLOGY
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
30
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
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
31
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
Data Analysis and interpretation

Q1. Do you have account in?
33
Table 1
State Bank of India 38
Punjab National Bank 22
Both 19
Others 21
21 State Bank of India

38%
%
Punjab National
Bank
Both
19%
22% Others
Interpretation
34
Q2. Do you have ATM Services with your account?

Table 2
Yes 68
No 22
22%
Yes
No
68%
35
Q3. Which of these is the most important reason for possessing ATM card/s?
Table 3
Bank offered Free 55
For emergency purpose 60
Availability of many ATM centres 40
24 hour accessibility 20
B ank offered F ree
11% F or em ergenc y
31%
23% purpos e
A vailability of
m any A TM c entres
35%
24 hour
ac c es s ibility
36
Q4 How frequently do you use ATM card in a week?

Table 4
Less than 3 times 12
3-5 times 18
5 to 8 17
More than 8 times 21
26% 24% 3-5 times

5 to 8
More than 8 times
22% 24 hour accessibility
28%
37
Q5. What is the purpose/s for using ATM? (Tick one or more)
Table 5
Cash Withdrawal 45
Balance Inquiry 13
Balance Transfer 2
Others 8
Cash Withdrawal
Balance Inquiry
23%
Balance Transfer
9% 51%
2%
15% Others
24 hour
accessibility
Q6. How much time do you spend waiting in queue at ATM?

Table 6
38
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
30 28
25
20
SBI (38/100
Number of customers
Customers)
15 12 PNB(22/100
Customers)
10 8
6
4
5 2
0
Less than 5 5 min to 10 10 min or
min min more
Time
Q7. How long does it take to process your transaction at the ATM centre?
Table 7
39
Less than 5 min 25 18
5 min to 10 min 10 4
10 min or more 3 0
30
25
25
20 18
SBI (38/100
Customers)
Number of customers
15
PNB(22/100
10 Customers)
10
4
5 3
0
0
Less than 5 5 min to 10 10 min or
min min more
Time
Q8. Have you ever been cheated or your ATM has been misused without your permission?
Table 8
40
Yes 2 0
No 36 22
40
36
35
30
Number of customer
25 22
Yes
20
No
15
10
5 2
0
0
SBI (38/100 PNB(22/100
Customers) Customers)
Q9. Did you complaint for the fraud and any action taken by Bank Authority
Table 9
41
Yes 2 0
No 1 0
2.5
2
2
1.5
Yes
Number of customers
1 No
1
0.5
0 0
0
Q10. What are the additional services provided by your bank at ATM?
Centres? (Tick one or more)
42
Table 10
Cash Deposit 0 0
Cheque Deposit 0 0
Bill Payments 38 22
Phone bank 0 0
Other 20 12
40 38
35
30
25 22 SBI (38/100
20 Customers)
20
PNB(22/100
12
Number of customers
15 Customers)
10
5 00 00 00
0
it
t
nk
er
ts
si
os
th
po
en
ba
ep
O
m
De
e
D
ay
on
ue
sh
ll P
Ph
eq
Ca
Bi
Ch
Q11. How much satisfied are you with your ATM service?
Table 11
43
Highly Satisfied 4 2
Very Satisfied 6 2
Satisfied 18 10
Less Satisfied 5 6
Not Satisfied 5 2
20 18
18
16
14
SBI (38/100
12 10 Customers)
10
Number of Customer
PNB(22/100
8 6 6
5 5 Customers)
6 4
4 2 2 2
2
0
d
d
d
d
d
f ie
fie
fie
fi e
fie
tis
tis
is
tis
tis
at
Sa
Sa
Sa
Sa
tS
y
ry
ss
No
hl
Ve
Le
g
Hi
Q12. How much secured do you feel to use ATM card?

Table 12
44
Highly Secured 8 2
Very Secured 10 2
Secured 15 14
Less Secured 4 4
Not Secured 1 0
16 15
14
14
12
10
10 SBI (38/100
8 Customers)
8
Number of Customers
PNB(22/100
6 Customers)
44
4
2 2
2 1
0
0
d
d
d
d
re
re
re
re
re
cu
cu
cu
cu
cu
Se
Se
Se
Se
Se
y
ot
ry
ss
hl
N
Ve
Le
ig
H
Q13. Do they run out of cash frequently?

Table 16
45
Always 18 5
Sometimes 18 10
Never 2 7
20
18 18
18
16
14
12 SBI (38/100
10
Number of Customer
Customers)
10
PNB(22/100
8 7
Customers)
6 5
4
2
2
0
Always Sometimes Never
46
FINDINGS
AND
CONCLUSION
47
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.
48
• 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.
49
RECOMMENDATIONS
50
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.
51
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
52
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
53
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
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
54
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Study the Customer Preferences Towards ATM services of PNB and SBI

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

“Change is a part of Life”.

• Issue of promissory notes.

• Processing of payment by way of telegraphic transfer.

• Issuing bank drafts and cheques

• 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.

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

PUNJAB NATIONAL BANK

Awards & Achievements of Punjab National

At the IDRBT Banking Technology awards for the

for Excellence in Corporate Governance - 2005 by

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

Skotch Challenger Award for

Banking Technology Awards 2004

for excellence in export performance for 3

by the leading Financial Daily The Economic Times,

9th amongst India's Top 50 Most

3rd Rank amongst Banking Sector in

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

 Housing finance for individuals

 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

PNB INTRODUCES ADD-ON DEBIT CARD:-

Issuance of Debit Card from Call centre:-

ATM Sharing Arrangements

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

• Valid in all Maestro and Cirrus Acceptance Marks.

• 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

• Card validity - Till the customer holds the account

Branches eligible to issue Debit Cards

Who is eligible for PNB Debit Card?

Sr. No. Name of Director

SBI's Retail Banking

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

• Loan For ESOPS

• SBI VISHWA YATRA FOREIGN TRAVEL CARD

• FOREIGN INWARD REMITTANCE

STATE BANK NETWORKED ATM SERVICES

KINDS OF CARDS ACCEPTED AT STATE BANK ATMs

1) State Bank Credit Card

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

Transaction ATMs of Other banks under