PEOPLES BANK

SRI LANKA
By
Thilini Boomawala
National Institute of business
Management

ABOUT PEOPLES BANK

Peoples bank was established in 1st of July 1961.
first branch in Duke Street Colombo.
The total number of employees stood at 169 and today its near
10000 employees around the island wide branch network.
329 branches and 340 service centers totaling 712 in island wide.
Customer accounts close to 13 Mn.
Bank ratings were upgraded - Fitch Rating AA and RAM
Ratings AAA.

VISION OF THE BANK

To be the Bank of the aspiring of Sri Lanka; empowering
the Peoples to become value creating.

MISSION OF THE BANK

FOR THE CUSTOMER:- To take pride in providing an excellent
service in the most caring responsive and professional manner.
FOR THE SOCIETY :-To support empowerment and sustainable
development by contributing to the upliftment of education, culture
and environment island wide
FOR OWNERS:- To generate benefits for the national economy whilst
being independent and commercially viable
FOR EMPLOYEES:- To create opportunities for our rmployees to
benefit from their high performance by becoming value creating, skilled,
self confident and professional individuals who are also team players.

PRODUCTS AND SERVICES

Product and service

Target market

Harvest special savings account

For farmers

Vanitha vasana account

For women

Isuru udana savings account

The wisest gift for children

Sisu udana savings account

Give your child a future

Doo daru ethera savings account

For people employed in foreign account

YES account

Say YES to life

YES future stars

Success begins at 16

Swarna pradeepa savings account

Peoples bank golden loan service

Ethera isura savings account

Higher interest for your foreign account

Jaya niwasa savings account

A helping hand from a friend

Parinatha savings account

Life begins at 55

Vandana loan

Senior citizens pilgrimages

Gurusetha loan

For teachers

Jana jaya loan

Saving for a secure life

Corporate banking

For business industry

Development banking

Government activities

PROBLEM STATEMENT
Analysis of desired tate and current state of
providing premenant overdraft.
Allocation time in current system of providing
permenant overdraft
Some activities are getting longer time period.

OBJECTIVE
Performance

Standard

Condition

To reduce the existing time

allocation for each
activities in POD system

In 40% while adopting to

the ISO 9001:2008.

without affecting to the day

today work life of the staff
members.

SIGNIFICANCE OF THE
STUDY
ISO 9001 :2008
BENEFITS
Elemenate wastage of resources.
Increase customer loyalty.
To gain competitive advantage.
Increase effeiciency and effectiveness

LITERATURE OF REVIEW

SIGNIFICANCE OF THE
STUDY
ISO 9001 :2008
BENEFITS
Elemenate wastage of resources.
Increase customer loyalty.
To gain competitive advantage.
Increase effeiciency and effectiveness

SIGNIFICANCE OF THE
STUDY
ISO 9001 :2008
BENEFITS
Elemenate wastage of resources.
Increase customer loyalty.
To gain competitive advantage.
Increase effeiciency and effectiveness

LITERATURE OF REVIEW

ISO 9001:2008
The ISO 9000 management system standards were
developed during the 1980s.

ISO 9001 is a global quality management standard.

Use it to establish and to update your organization's
quality management system (QMS).

All types of organizations

ISO defines that Quality is conformance to defined

specifications in terms of performance, price delivery.

UNDERSTANDING ISO 9001:2008

continual improvement :- fundamental to the standard

Requirement of documentation:- Document, Records,

Internal audits, Nonconforming product, Corrective action,
Preventive action.

MANAGEMENT PHILOSOPHY
KAIZEN.
Enhance the value addition
Treat the customers as kings
Treat suppliers as business partners.
Treat employees as shareholders.
Update the machines, equipment with
technology.

PDCA CYCLE
Developed by Walter Shewhart, the
pioneering statistician who developed
statistical process control in the Bell
Laboratories in the US during the 1930's.
It was taken up and promoted very effectively from the 1950s on
by the famous Quality Management authority, W. Edwards Deming,
and is consequently known by many as `the Deming Wheel'.
coordinate your continuous improvement efforts

SERVICE GAP MODEL

The key concepts, strategies, and decisions in services marketing
what is needed to close the gap between customer expectations
and perceptions.
Gap 1- not knowing
what customers expect

Gap 4 not
matching
performance to
promises

Gap 5 - the
customer gap,

Gap3 not delivering to

service standards

Gap 2 not
selecting the right
service designs and
standards

METHODOLOGY
Data Collection Methods
observation
Discussions
referring to past records.
Practical involvement.

SUPPORTED QUESTIONS

Who are the internal and external customers? (Internal/ External

customers)
1.

2. What are the requirements of internal and external customers?

(Output)
3. What is the purpose of the intended system? (Outcome)
4. What are the resources available for the intended system?
(Resources)
5. What is the system boundary? (Scope)

What is the process to transform the resurces (input) to acieve the

objective(outcome) of the system? (Transformation)
6.

7. How to compare the desired results (outcome) and the achieved

results and identify the gap? (Stimulus)
8. How to respond with the resources to bridge the above gap for
having the desired results? (Response)
9. How to establish records to provide evidence of the conformity to
above requirements? (Control of records)
10. How to audit the above steps to ensure the continual improvement?
(System audit)

INSTRUMENTATION
Daily diary.
Field note book.
Theoritical notes

CONCEPTUAL FRAMEWORK
Customer satisfaction

SCOPE AND LIMITATIONS

Scope :- reduce the existing time allocation for each activities in
POD system by examine the each activities in Peoples Bank in
Sri Lanka.
Limitations

They dont like to change with new technology

Difficult to implement the new ideas without having permission of the head office and
the regional office.
Not concentrating on the job.
Difficult to establish new technology in the branch.

PROCEDURE AND FRAMEWORK

Activity

1.

study the process.

1.

work under the loans

officer.

1.

Handle the prcoess

1.

identification issues
from the current
process and raising the
questions.

1.

Develop the new

process and chart make
the correction

1.

Study and involve with

the instalation of
process

1.

study about the results

of this process

November (Weeks)

December

(Weeks)
3

January
(Weeks)
1
2

DATA ANALYSIS
1. Who are the internal and external
Internal customers
Branch manager

Loans officer

Inspection officer

Legal officer

Peon

Regional manager/ Asistant

general manager/ Asistant

regional manager.

customers? (Internal/ External customers)

External customers

Business customers
Individual customers

2. What are the requirements of internal and external customers? (Output)

To provide POD to satisfy customer requirement on time.
3. What is the purpose of the intended system? (Outcome)
To reduce the time by 30% of the POD system without affection to the day today
work life of staff members while refer to ISO 9001:2008 Internal Quality Standard.

4. What are the resources available for the intended system? (Resources)
Men (M1 )

Machines and
Equipments (M2)

Material (M3)

Loans officer (a)

Branch manager (b)
Inspection officer (c)
Regional manager/ Asistant general
manager/ Asistant regional manager (d)
Legal officer (e)

Pen (f)
Computer (g)
Printer (h)
Fax (i)
Notepad (j)
Statement files (k)
Applications (l)
Documents (m)
POD register (n)
Legal documents (r)
Inspection file (o)
Business income report (p)
Mortage report (s)
Securities (t)

5. What

is the system boundary? (Scope)

According to this project loans division is the system boundary.
6. What is the process to transform the resurces (input) to acieve the objective(outcome) of the
system? (Transformation

Input

7. How to compare the desired results (outcome) and the achieved results and identify the gap?
(Stimulus)
I realized that there is a gap between desired results and current results based on the
technology and the time when providing the services.

8. How

to respond with the resources to bridge the above gap for having the desired results?
(Response)
In order to respond to this gap the use of both critical and non critical activities
currently.
9. How to establish records to provide evidence of the conformity to above requirements?
(Control of records)
No evidence collected.
10. How to audit the above steps to ensure the continual improvement? (System audit)
No special audit system for POD Process.

ANALYSIS
System chart
Gantt chart

FINDINGS
1. Who are the internal and external customers? (Internal)
Branch manager.
Loans officer
Inspection officer
Legal officer
Peon
Regional manager/ Assistant general manager/ Assistant regional manager
2. What are the requirements of internal customers? (Output)
To provide POD to satisfy customer requirement on time.
3. What is the purpose of the intended system? (Outcome)
To reduce the time by 30% of the POD system without affecting to the day today work life of
staff members while refer to ISO 9001:2008 Internal Quality Standard.

4. What

are the resources available for the intended system? (Resources)

Man power.
Material.
Machine.
Method.

5. What is the system boundary? (Scope)

According to this project loans division and the regional head office of the bank is the
system boundary.
6. What is the process to transform the resources (input) to achieve the objective(outcome) of the
system? (Transformation)

Input

7. How

to compare the desired results (outcome) and the achieved results and identify the gap?
(Stimulus)
By comparing the desired QQTC with the actual QQTC.

8. How

to respond with the resources to bridge the above gap for having the desired results?
(Response)
The department should respond to the stimulus (defined as gap between desired and the
actual results). That is using with the support of planning, organizing, directing, coordinating
and controlling to choose right response/ action to the right stimulus.
9. How to establish records to provide evidence of the conformity to above requirements?
(Control of records)
Update department related as well non related department related information in to a
common system and also introduce the new system for the Marketing POD process in order to
maintain their daily transactions.
10. How to audit the above steps to ensure the continual improvement? (System audit)
The department should follow an auditing system which is prepared using the ISO auditing
system for continuing the process and updating the process movement by movement.

CONCLUSION
1. Who

are the internal and external customers? (Internal)

Branch manager.
Loans officer
Inspection officer
Legal officer
Peon
Regional manager/ Assistant general manager/ Assistant regional manager

2. What are the requirements of internal customers? (Output)

To provide POD to satisfy customer requirement on time.
3. What is the purpose of the intended system? (Outcome)
To reduce the time by 30% of the POD system without affection to the day
today work life of staff members while refer to ISO 9001:2008 Internal Quality Standard.

4. What

are the resources available for the intended system? (Resources)

Men (M1 )

Machines and
Equipments (M2)

Material (M3)

Loans officer (a1)

Loans officer (a2)
Branch manager (b)
Inspection officer (c1)
Inspection officer (C2)
Regional manager/ Asistant general
manager/ Asistant regional manager (d)
Legal officer (e)

Pen (f)
Computer (g)
Printer (h)
Fax (i)
Notepad (j)
Statement files (k)
Applications (l)
Documents (m)
POD register (n)
Legal documents (r)
Inspection file (o)
Business income report (p)
Mortage report (s)
Securities (t)

What is the system boundary? (Scope)

According to this project loans division and the regional head office of the bank is
the system boundary.
5.

6. What is the process to transform the resurces (input) to acieve the objective(outcome) of the
system? (Transformation)
Input

7. How

to compare the desired results (outcome) and the achieved results and identify
the gap? (Stimulus)
By comparing the desired QQTC with the actual QQTC.

8. How

to respond with the resources to bridge the above gap for having the desired results? (Response)
The department should respond to the stimulus (defined as gap between desired and the actual
results). That is using with the support of planning, organizing, directing, coordinating and controlling
to choose right response/ action to the right stimulus.
9.How to establish records to provide evidence of the conformity to above requirements? (Control of
records)
Update department related as well non related department related information in to a common system
and also introduce the new system for the Marketing POD process in order to maintain their daily
transactions.
10. How to audit the above steps to ensure the continual improvement? (System audit)
The department should follow an auditing system which is prepared using the ISO auditing system for
continuing the process and updating the process movement by movement.

RECOMMENDATIONS
Develop models around customer needs by reprioritizing spending, including increasing
the use of low-cost digital models and using more innovative technology.
Give training to the employees about the advantages of having new technologies to their
work life.
Give more attention to the customer requirements.
Give proper training for the employees grade by grade to enhance their attitudes,
efficiency and effectiveness. As well as the top management should motivate them.
Bring new machines and equipments and install in the bank.
Increase number of employees for the loans division.

IMPLEMENTATIONS OF
RECOMMENDATIONS
Recommendations
(What)
01). Develop models around customer

Implementing Time
(When)
Within two months

needs by reprioritizing spending, including

Responsible Person
(Who)
All members in the loans division and the branch
manager.

increasing the use of low-cost digital

models and using more innovative
technology
02). Give training to the employees about

Within three weeks

Specially top management

Within one month

Staff members in loans division and Branch Manager

the advantages of having new technologies

to their work life.
03). Give more attention to the customer
requirements.

04). Give Proper training for the employees Within 3 weeks (as soon as possible)

Branch manager and Regional Manager.

grade by grad
05).install new machines

Within three months

DGM and Regional Manager.

06). Increase number of employees for the

loans division.

Within four months

Branch manager, Regional Manager and DGM in head

office

Activity
Quantity
01. customer discussion with the officer One loans officer
about the requirement
02. Check the statement files .
One loans officer
03. Forward the current account
One loans officer and the
statements to manager and
branch manager
consideration of the discussion &giving
the approval

RESULT

Current QQT
Quality
Right details

5mins

Right details
Immediate result

15 mins
15 mins

Time

Desired QQT
Quality
Right details

5mins

One loans officer

One loans officer and the
branch manager

Right details
Immediate result

15 mins
15 mins

Quantity
One loans officer

Time

04. Filling the application

05 give the proposal with relevant
documents to the manager
06. Give the POD file to the Loans
officers.
07. Enter the POD application in to the
applications register.
08. Check Crib through the application
number
09. Sending the Crib report to
inspection authority
10.Visit the place of mortgage property
and check the inspection file
11.Send the valuation report to the
Regional Head office

One loans officer

One loans officer

Fast service
All correct measurements

5mins
20mins

One loans officer

One loans officer

Fast service
All correct measurements

5mins
20mins

Branch Manager

Right details

10mins

Branch Manager

Right details

10 mins

One application

All correct entries

10 mins

One application

All correct entries

10 mins

One entry at a time

Immediate result

2 mins

One entry at a time

Immediate result

2 mins

One document

One document

One inspection officer.

Including all the correct

15mins
information
Update all the past information 3 hours

One inspection officer

Including all the correct

15 mins
information
Update all the past information 3 hours

Branch manager

With all updated information

2 hours

Branch manager

With all updated information

2 hours

12.Visit the place of business premises

13. Prepare the POD limit considering
the evaluation committee decision and
business income report.

One loans officer

One document

Right details
Including all the correct
information

3 hours
1 hour

One loans officer

One document

Right details
Including all the correct
information

3 hours
1 hour

14. Gather all the documents in to a one

file regarding to the POD limit
15. Forward credit limit the manager to
get the approval
16. Sign the POD limit
17. Sending a copy of POD limit and
valuation report to the legal officer
18. Approve the securities by the
manager
19. Prepare a mortgage bond using legal
documents
20. Signing the mortgage bond by the
customer and prepare a letter send to
the branch

One file

Including all the right details

1 hour

One file

Including all the right details

1 hour

one officer with one file

With right details

30 mins

One officer with one file

With right details

30 mins

One loans officer

One copy

Immediate result
25 mins
With all the correct information 2 hours

One loans officer

One copy

Immediate result
25 mins
With all the correct information 2 hours

Branch manager

Immediate result

15mins

Branch manager

Immediate result

45 mins

One legal officer, one document Using the right details

One document

With all the correct information 1 hour

One document

With all the correct information 1 hour

21. Enter the approved securities after

receiving the letter from regional head
office.

One loans officer

All the correct information

One loans officer

All the correct information

One legal officer, one document Using the right details

35 mins

15mins
45 mins

35 mins

THANK YOU