A Study on Credit Mechanism of PNB

Public sector banks have dominated the Indian banking industry. However, with the entry of private players in the industry, they are forced to enhance their quality to keep in pace with the competition posed by these private players. Provision of credit is the most important activity of banks which determine their profitability. This descriptive research endeavours to analyse the loanees perception about credit mechanism of Punjab National Bank (PNB) by administering a well structured interview schedule to those who have availed credit from the bank. Results reveal that the loanees are quite satisfied with the bank's credit policy while the credit disbursement results. Further, service quality exerts the maximum impact on customer satisfaction, followed by trust and employee behaviour.