“CUSTOMERS’ PERCEPTION TOWARDS E-BANKING

SERVICES – A COMPARATIVE STUDY ON THE PUBLIC

AND PRIVATE SECTOR BANKS IN BANGALORE”.

BY

GADDAM SHAKUNTALADEVI SHRUTI

REG NO: - 15MB4924

Project submitted to the University of Mysore in partial fulfilment of the

requirements of IV Semester MBA degree examination -2017

#15, New BEL Road, MSRIT Post, M S Ramaiah Nagar

Bangalore – 560054

1
 STUDENT’S DECLARATION

I, Gaddam Shakuntaladevi Shruti hereby declare that this Project Report titled
“CUSTOMERS’ PERCEPTION TOWARDS E-BANKING SERVICES – A
COMPARATIVE STUDY ON THE PUBLIC AND PRIVATE SECTOR BANKS IN
BANGALORE” submitted in partial fulfilment of the requirement for IV
SEMESTER MBA degree Examination to the University of Mysore, through
Ramaiah Institute of Management Studies, Bangalore- 560054 is a record of my
original work done by me and has not been submitted previously for the award of
any degree / diploma to any other university.

Place: Bangalore Candidate’s Signature:

Date: Registration No. 15MB4924

2
 GUIDE CERTIFICATE

This is to certify that the project report titled “CUSTOMERS’ PERCEPTION

TOWARDS E-BANKING SERVICES – A COMPARATIVE STUDY ON THE PUBLIC
AND PRIVATE SECTOR BANKS IN BANGALORE” submitted to the University of
Mysore, Mysore in partial fulfillment of IV Semester MBA Degree
Examination- 2017, by GADDAM SHAKUNTALADEVI SHRUTI bearing
Registration No. 15MB4924 has worked under my supervision and guidance.
I certify that no part of this Project Report has been submitted earlier to any
Department/ University for the award of any degree / diploma to the best of my
knowledge.

Place: Bangalore Guide Signature

Date: Prof. NARASIMHA PRAKASH.

3
 ACKNOWLEDGEMENT

A work like this needs support and encouragement from different sections of
various industrialists. This Project research has taken the help of many
personalities like Professors of Business Management and business leaders.
Many of them are either working in industries as officers or working as managers
and some of them are really business entrepreneurs who have got vast knowledge
in many areas.
At the very outset this project researcher expresses thanks to the reputed
University of Mysore for giving me an opportunity to pursue my MBA Degree
and allowed me to submit this work for the award of MBA Degree.
Researcher also expresses thanks to Dr. M. R. Pattabhiram, the Hon’ble Director
of Ramaiah Institute of Management Studies for encouraging me to do this work.
I also wish to express my sincere thanks to my guide Prof. Narasimha Prakash for
encouraging me to do this work by his valuable knowledge and experience in this
field.
I also wish to record my sincere thanks to the Hon. Dean Dr. Arun Mudhol for
the encouragement in writing this report.
I owe irredeemable debt to my parents. Further, I wish to record my thanks to
Mr.Veda Murthy, Librarian, Ramaiah Institute of Management Studies,
Bangalore for his patience and timely help.

Date: Signature of the Candidate

4
 Executive summary

The project has been prepared under the title of “CUSTOMERS’ PERCEPTION TOWARDS
E-BANKING SERVICES – A COMPARATIVE STUDY ON THE PUBLIC AND
PRIVATE SECTOR BANKS IN BANGALORE” One would think that the main purpose for
a bank besides managing one's money would be giving good customer service. Excellence in
customer service is the most important tool for sustained business growth. Customer complaints
are part of the business life of any corporate entity. This is more so for banks because banks are
service organizations. As a service organization, customer service and customer satisfaction
should be the prime concern of any bank. Banks believe that by providing prompt and efficient
service on to their customers, this is essential not only to attract new customers, but also to retain
existing ones because customer dissatisfaction would spoil the bank's name and image. To
provide this kind of service more fast and efficient, the major weapon of bank is e-banking.
There are several Research Design techniques that can be used to identify customer perceptions
about internet banking and also service problems such as debit card fraud and loan issues. A
survey was implemented to find out how well customer perception about e-banking leads to
various banker’s function and the studies have found that the exploratory research was used in
order to identify all problems associated with customer service specifically internet banking.
After that company profile is given. Then the research methodology is followed by objective of
doing the project. The research was carried out as per the steps of research. Then the supportive
objectives were set for the study. To meet the requirement both the primary and secondary
research was undertaken. The instrument used for the primary data was collected by means of
questionnaire and the secondary data was collected by means of web based published sources;
books and articles related to the topic were thoroughly examined. Tables & charts were used to
translate responses into meaningful information to get the most out of the collected data. Based
on those the findings, recommendations and conclusions have been drawn with.

5
 INDEX

Chapter CONTENTS PAGE.NO

No.
1 INTRODUCTION 7-34
2 LITERATURE REVIEW 35-41
3 RESEARCH METHODOLOGY 42-45
4 DATA ANALYSIS & 46-75
INTERPRETATION
5 FINDINGS (Results of the study) 76-78
RECOMMENDATIONS 79

CONCLUSION 80

BIBLIOGRAPHY 81-83
APPENDIX 84-86

6
CHAPTER 1

UNIT 1

7
 INTRODUCTION
1.1 Introduction to Banking Sector

The Indian banking sector has witnessed wide ranging changes under the influence of the
financial sector reforms initiated during the early 1990s.

The approach to such reforms in India has been one of the gradual and nondestructive
progresses through a consultative process. The emphasis has been on deregulation and opening
up of the banking sector to market forces.

The Reserve Bank of India has been consistently working towards the establishment of an
enabling regulatory framework with prompt and effective supervision as well as the
development of technological and institutional infrastructure. Persistent efforts have been made
towards the adoption of international benchmarks as appropriate to Indian conditions.

While certain changes in the legal infrastructure are yet to be effected, the developments so far
have brought the Indian financial system closer to global standards. Information Technology
(IT) is a very powerful tool in today’s world, and financial institutions are the backbone of
Indian economy. Indian Banking Industry today is in the midst of an Information Technology
revolution. Nearly, all the public and private sector banks in India are looking for information
technology based solutions for all their operations. The application of Information Technology
in banks has reduced the scope of traditional or conventional banking with manual operations.
Nowadays, banks have moved from dispersed to a centralized environment, which 2 shows the
impact of Information Technology on banks.

Banks are now using new tools and techniques to retain their customers by finding out their
customer’s needs and offering them tailor made products and services. The impact of
automation in the banking sector is although difficult to measure.

The banking sector is the section of the economy devoted to the holding of financial assets for
others, investing those financial assets as leverage to create more wealth, and the regulation of
those activities by government agencies.

This is the core of all banking, and where it began — though it has expanded far beyond the
days of holding gold coins for Holy Land pilgrims in exchange for promissory notes. A bank
holds assets for its clients, with a promise that the money may be withdrawn if the individual or
business needs said assets back. Avoiding devastating bank runs that could destroy the sector
as a whole is why banks are required to maintain at least 8% of their book values as actual
money.

Traditionally, banks leverage the money in their vaults as loans, earning money from the
interest rates charged on those loans. The great contradiction of banking is that almost all of a
bank's actual money is nowhere near its vaults, meaning that its true value is only paper, yet
that paper value is what grows the economy.

8
The banking sector has always attempted to diversify its risks by investing as widely as
possible; this prevents an unexpected loan default from sinking the entire bank. However, this
can cause other problems. If a bank had invested in the aluminium futures market and had
a vested interest in increasing its value, it could simply prevent the aluminium from being sold
to industry and drive up that value. This could have a knockback effect on industry and disrupt
the economy, which the banking sector should avoid at all costs.

That is not a random example. Goldman Sachs did exactly that from 2010-2013, and it avoided
regulation to prevent this sort of market manipulation by moving the aluminium from
warehouse to warehouse within the regulatory limit. It also owned the warehouses, located in
Chicago.

Because banks are the underpinning of a modern economy, governments naturally have laws in
place to prevent banks from engaging in dangerous activity that threatens the economy; these
laws are often enacted after hard financial lessons, such as the creation of the Federal Deposit
Insurance Corporation in 1933 after the bank panics of the previous 50 years. However, such
laws are campaigned against by banks and are sometimes removed, and this has led to history
repeating itself.

The financial crisis of 2008 was created, in part, by several U.S. banks overinvesting
in subprime mortgages, for example. Prior to 2000, there were laws that limited the amount
of subprime mortgages available, but deregulation efforts removed this limitation and
permitted the crisis to happen. It was not the only cause, but it was the tipping point that
destroyed worldwide trust in the banking sector.

The banking sector's core is trust. Without it, no clients would deposit money, and it would be
unable to use that money to give loans, invest, and drive economic growth, and regulation is
used to create that trust.

1.2 INDUSTRIES CHARACTERISTICS:-

The major characteristics of the Banking Sector are:

1) DEALING IN MONEY:- All banks basically deals with money as they are
financial institute where we links for our moneys exchanges we will either gave or
deposit money in banks or will led/barrow money from banks for our requirement as
per we need.

2) ACCEPTANCE OF MONEY DEPOSITS: -All banks always works for their

consumer satisfaction as a result they accepts money from all their customers in a way
there they also gave an Interest on deposited with the duration passed to money in bank.
Banks deposits money from peoples & after that the protection of money is the
responsibility of banks any misfortune happens to the consumer’s money will be
returned by banks to customer within a given period of time.

9
3) PAYMENT AND WITHDRAWS MONEY: - A person who has deposit their
money into bank can able to withdraw it at any time of instance. A customer can also
able to easy payment & withdraw their money with the facilities of ATM, DRAFTS,
MONEY ORDERS, and CHEQUES etc.

4) INDIVIDUAL OR COMPANIES: - Bank can be of any type it can be a

company or firm or also a person which are involved in the business of money. This is
also how banks are defined.

5) VARIOUS BRANCHES: - A bank can also have multiple branches for the
facility of their customers as every person cannot be able to go to the main branch of
the Bank so banks further grows their own branches so that they can reach to each n
every person.

6) FUNCTION INCREASING RAPIDLY: - BANKS always believe in

developing of facilities for the customers so that they always increase their functions
for working like developing latest ATM machines for the transactions of money and
also net banking by which will be able to buy & sell any item from the sitting in our
comfort zone.

7) BUSINESS IN BANKING SECTOR:-BANKS do the business of money

without any subsidiary business. There only responsibility is to satisfy their customers.
This is also how banks define as they do the business of money interchanging from 1
hand to other.

8) IDENTIFICATION: - Each bank has a unique name but having BANK name as
common in all. Which identifies the banks existence. People deals with different banks
having different names but bank word in common in all of them.

9) FACILITIES OF ADVANCE MONEY: - BANKS ALSO LED/GAVE

money to the people in a form of LOAN with minimum amount of interest. People
which are not able to full fill their requirements at an instance of time which required a
large amount of money at that time banks lend money to them so that they full fill their
requirements and returns back in small installment which are known as EMIs.

10
1.3 INTRODUCTION TO E-BANKING:
Electronic banking is one of the truly widespread avatars of e-commerce all over the world.
Various authors define e-banking differently and the definitions giving the meaning and
features of e-banking are as follows:
1. e-banking is a combination of electronic technology and banking.
2. e-banking is a process by which a customer performs banking transactions electronically
without visiting a brick-and-mortar institution.
3. e-banking denotes the provision of banking and related services through extensive use of
information technology without direct recourse to the bank by the customer.

1.4 NEED FOR E-BANKING:

One has to approach a bank branch in person to withdraw cash or deposit a cheque or request a
statement of accounts.
In internet banking, any inquiry or transaction is processed online without any reference to the
branch (anywhere banking) at any time. Providing internet banking is increasingly becoming a
“need to have” than a “nice to have” service.
The net banking, thus, is more of a norm rather than an exception in many developed countries
due to the fact that it is the cheapest way of providing banking services. Banks have
traditionally been in the forefront of harnessing technology to improve the efficiency of their
products and services. They have, over a long time, been using electronic and
telecommunication networks for delivering a wide range of value added products and services.
The delivery channels include direct dial – up connections, private networks, public networks
etc., and the devices include telephone, personal computers, the Automated Teller Machines
(ATM) etc.
With the popularity of PCs and the easy access to the internet and World Wide Web (WWW),
internet is increasingly used by banks as a channel for receiving instructions and delivering
their products and services to their customers.
This form of 5 banking is generally referred to as Internet Banking, although the range of
products and services offered by different banks vary widely both in their content and
sophistication

Customer Perception
Customer perception is an important components of our relationship with our customers.
Customer’s satisfaction is a mental state which results from the customer’s comparison of
expectations prior to a purchase with performance perceptions after a purchase. A customer
may make such comparison for each part of an offer called “Domain- specific satisfaction” or
the offer in total called “global satisfaction”. Moreover, this mental state, which we view as a
cognitive judgement, is conceived of as falling somewhere on a bipolar continuum bounded at
the lower end by a low level of satisfaction where expectations exceed performance

11
perceptions and at the higher end by a high level of satisfaction where performance exceed
expectations.

Customer Perception on Service.

These characteristics of service also make service unique and different from goods as described
below:-
1) Intangibility: - Unlike manufactured goods that are tangible, a service is intangible.
The products from service are purely a performance. The consumer cannot see, taste,
smell, hear, feel or touch the product before it purchased.
2) Heterogeneity: - A service is difficult to produce consistently and exactly over time.
Service performance varies from producer to producer, from customer to customer, and
from time to time. This characteristic of service makes it difficult to standardize the
quality of the service.
3) Inseparability: - In service industries, usually the producer performs the service at
the time the consumption of the service takes place. Therefore, it is difficult for the
producer to hide mistakes or quality shortfalls of the service. In comparison the goods
producers, have a buffer between productions and customer’s consumption.
4) Perishability: - Unlike manufactured goods, services cannot be stored for later
consumption. This makes it impossible to have a quality check before the producers
send it to the customers. The service providers then only one path, to provide service
right the first and every time.
5) Non- returnable: - A service is not returnable, unlike products. On the other hand, in
many services, customers may be fully refunded if the service is not satisfactory.

Measuring Customer Perception in the Banking Industry

Banking operations are becoming increasingly customer dictated. The demand for ‘banking
super malls’ offering one-stop integrated financial services is well on the rise. The ability of
banks to offer clients access to several markets for different classes of financial instruments
has become a valuable competitive edge. Convergence in the industry to cater to the
changing demographic expectations is now than evident. Bancassurance and other forms of
cross selling and strategic alliances will soon alter the business dynamics of banks and fuel
the process of consolidation for increased scope of business and revenue. The thrust on farm
sector, health sector and services offer several investment linkages. In short, the domestic
economy is an increasing pie which offers extensive economies of scale that only large
banks will be in a position to tap. With the phenomenal increase in the country’s population
and the increased demand for banking services; speed, service quality and customer
satisfaction are going to be key differentiators for each bank’s future success. Thus it is
imperative for banks to get useful feedback on their actual response time and customer
service quality aspects of retail banking, which in turn will help them take positive steps to
maintain a competitive edge.

The working of the customer’s mind is a mystery which is difficult to solve and
understanding the nuances of what perception the customer has to attain satisfaction is, a
challenging task. This exercise in the context of the banking industry will give us an insight

12
into the parameters of customer satisfaction and their measurement. This vital information
will help us to build satisfaction amongst the customers and customer loyalty in the long run
which is an integral part of any business. The customer’s requirements must be translated
and quantified into measurable targets. The customer’s requirements must be translated and
quantified into measurable targets. This provides an easy way to monitor improvements, and
deciding upon the attributes that need to be concentrated on in order to improve customer
satisfaction. We can recognize where we need to make changes to create improvements and
determine if these changes, after implemented, have led to increased customer satisfaction.

13
 UNIT 2

INDUSTRY PROFILE

 BANKING INDUSTRY
Banking in India, in the modern sense, originated in the last decades of the 18th century.
Among the first banks were the Bank of Hindostan, which was established in 1770 and
liquidated in 1829–32; and the General Bank of India, established in 1786 but failed in
1791.

The largest bank, and the oldest still in existence, is the State Bank of India (S.B.I). It
originated as the Bank of Calcutta in June 1806. In 1809, it was renamed as the Bank of
Bengal. This was one of the three banks funded by a presidency government, the other two
were the Bank of Bombay and the Bank of Madras. The three banks were merged in 1921
to form the Imperial Bank of India, which upon India's independence, became the State
Bank of India in 1955. For many years the presidency banks had acted as quasi-central
banks, as did their successors, until the Reserve Bank of India was established in 1935,
under the Reserve Bank of India Act, 1934.

In 1960, the State Banks of India was given control of eight state-associated banks under
the State Bank of India (Subsidiary Banks) Act, 1959. These are now called its associate
banks. In 1969 the Indian government nationalized 14 major private banks. In 1980, 6 more
private banks were nationalized. These nationalized banks are the majority of lenders in
the Indian economy. They dominate the banking sector because of their large size and
widespread networks.

The Indian banking sector is broadly classified into scheduled banks and non-scheduled
banks. The scheduled banks are those included under the 2nd Schedule of the Reserve
Bank of India Act, 1934. The scheduled banks are further classified into: nationalized
banks; State Bank of India and its associates; Regional Rural Banks (RRBs); foreign banks;
and other Indian private sector banks. The term commercial banks refers to both scheduled
and non-scheduled commercial banks regulated under the Banking Regulation Act, 1949.

Generally banking in India is fairly mature in terms of supply, product range and reach-
even though reach in rural India and to the poor still remains a challenge. The government
has developed initiatives to address this through the State Bank of India expanding its
branch network and through the National Bank for Agriculture and Rural Development
(NBARD) with facilities like microfinance.

14
History of Banking Sector in India
As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalised and
well-regulated. The financial and economic conditions in the country are far superior to any
other country in the world. Credit, market and liquidity risk studies suggest that Indian banks
are generally resilient and have withstood the global downturn well.
Indian banking industry has recently witnessed the roll out of innovative banking models like
payments and small finance banks. The central bank granted in-principle approval to 11
payments banks and 10 small finance banks in FY 2015-16. RBI’s new measures may go a
long way in helping the restructuring of the domestic banking industry.

Market Size
The Indian banking system consists of 26 public sector banks, 25 private sector banks, 43
foreign banks, 56 regional rural banks, 1,589 urban cooperative banks and 93,550 rural
cooperative banks, in addition to cooperative credit institutions. Public-sector banks control
nearly 80 percent of the market, thereby leaving comparatively much smaller shares for its
private peers. Banks are also encouraging their customers to manage their finances using
mobile phones.
Standard & Poor’s estimates that credit growth in India’s banking sector would improve to 11-
13 per cent in FY17 from less than 10 per cent in the second half of CY14.

Investments/developments
Key investments and developments in India’s banking industry include:

15
 RBL Bank Limited, an Indian private sector bank, has raised Rs 330 crore (US$ 49.6
million) from a UK-based development finance institution CDC Group Plc, which will
help RBL to strengthen the capital base to meet future requirements.
 The State Bank of India (SBI) signed an agreement with The World Bank for an Rs
4,200 crore (US$ 625 million) credit facility, aimed at financing grid connected rooftop
solar photovoltaic (GRPV) projects in India.
 JP Morgan Chase, the largest bank in United States by assets, plans to expand its
operations in India by opening three new branches in Delhi, Bangalore and Chennai in
addition to its existing branch in Mumbai.
 Canada Pension Plan Investment Board (CPPIB), an investment management company,
has bought a large stake in Kotak Mahindra Bank Ltd from Japan-based Sumitomo
Mitsui Banking Corporation.
 India’s first small finance bank called the Capital Small Finance Bank has started its
operations by launching 10 branch offices in Punjab, and aims to increase the number
of branches to 29 in the current FY 2016-17.
 FreeCharge, the wallet company owned by online retailer Snapdeal, has partnered with
Yes Bank and MasterCard to launch FreeCharge Go, a virtual card that allows users to
pay for goods and services at online shops and offline retailers.
 Exim Bank of India and the Government of Andhra Pradesh has signed a Memorandum
of Understanding (MoU) to promote exports in the state.
 Kotak Mahindra Bank Limited has bought 19.9 per cent stake in Airtel M Commerce
Services Limited (AMSL) for Rs 98.38 crore (US$ 14.43 million) to set up a payments
bank. AMSL provides semi-closed prepaid instrument and offers services under the
‘Airtel Money’ brand name.
 Ujjivan Financial Services Ltd, a microfinance services company, has raised Rs 312.4
crore (US$ 45.84 million) in a private placement from 33 domestic investors including
mutual funds, insurance firms, family offices and High Net Worth Individuals (HNIs)).
 India's largest public sector bank, State Bank of India (SBI), has opened its first branch
dedicated to serving start-up companies, in Bengaluru.
 Global rating agency Moody's has upgraded its outlook for the Indian banking system
to stable from negative based on its assessment of five drivers including improvement
in operating environment and stable asset risk and capital scenario.
 Lok Capital, a private equity investor backed by US-based non-profit organization
Rockefeller Foundation, plans to invest up to US$ 15 million in two proposed small
finance banks in India over the next one year.
 The Reserve Bank of India (RBI) has granted in-principle licenses to 10 applicants to
open small finance banks, which will help expanding access to financial services in
rural and semi-urban areas.
 IDFC Bank has become the latest new bank to start operations with 23 branches,
including 15 branches in rural areas of Madhya Pradesh.
 The RBI has given in-principle approval to 11 applicants to establish payment banks.
These banks can accept deposits and remittances, but are not allowed to extend any
loans.
 The Bank of Tokyo-Mitsubishi (BTMU), a Japanese financial services group, aims to
double its branch count in India to 10 over the next three years and also target a 10 per
cent credit growth during FY16.

16
  The RBI has allowed third-party white label automated teller machines (ATM) to
accept international cards, including international prepaid cards, and said white label
ATMs can now tie up with any commercial bank for cash supply.
 The RBI has allowed Indian alternative investment funds (AIFs), to invest abroad, in
order to increase the investment opportunities for these funds.
 Bandhan Financial Services raised Rs 1,600 crore (US$ 234.8 million) from two
international institutional investors to help convert its microfinance business into a full
service bank. Bandhan, one of the two entities to get a banking license along with
IDFC, launched its banking operations in August 2015.

Government Initiatives
The government and the regulator have undertaken several measures to strengthen the Indian
banking sector.

 In July 2016, the government allocated Rs 22,915 crore (US$ 3.41 billion) as capital
infusion in 13 public sector banks, which is expected to improve their liquidity and
lending operations, and shore up economic growth in the country.
 The Reserve Bank of India (RBI) has released the Vision 2018 document, aimed at
encouraging greater use of electronic payments by all sections of society by bringing
down paper-based transactions, increasing the usage of digital channels, and boosting
the customer base for mobile banking.
 The Reserve Bank of India (RBI) has issued guidelines for priority sector lending
certificates (PSLCs), according to which banks can issue four different kinds of
PSLCs—those for the shortfall in agriculture lending, lending to small and marginal
farmers, lending to micro enterprises and for overall lending targets – to meet their
priority sector lending targets.
 The Reserve Bank of India (RBI) has allowed additional reserves to be part of tier-1 or
core capital of banks, such as revaluation reserves linked to property holdings, foreign
currency translation reserves and deferred tax assets, which is expected to shore up the
capital of state-run banks and privately owned banks by up to Rs 35,000 crore (US$
5.14 billion) and Rs 5,000 crore (US$ 734 million) respectively.
 Scheduled commercial banks can grant non-fund based facilities including partial credit
enhancement (PEC), to those customers, who do not avail any fund based facility from
any bank in India.
 To reduce the burden of loan repayment on farmers, a provision of Rs 15,000 crore
(US$ 2.2 billion) has been made in the Union Budget 2016-17 towards interest
subvention.
 Under Pradhan Mantri Jan Dhan Yojna (PMJDY), 250.5 million accounts have been
opened and 192.2 million RuPay debit cards have been issued as of October 12, 2016.
These new accounts have mustered deposits worth almost Rs 44,480 crore (US$ 6.67
billion).
 The Government of India is looking to set up a special fund, as a part of National
Investment and Infrastructure Fund (NIIF), to deal with stressed assets of banks. The
special fund will potentially take over assets which are viable but don’t have additional
fresh equity from promoters coming in to complete the project.

17
  The Reserve Bank of India (RBI) plans to soon come out with guidelines, such as
common risk-based know-your-customer (KYC) norms, to reinforce protection for
consumers, especially since a large number of Indians have now been financially
included post the government’s massive drive to open a bank account for each
household.
 To provide relief to the state electricity distribution companies, Government of India
has proposed to their lenders that 75 per cent of their loans be converted to state
government bonds in two phases by March 2017. This will help several banks,
especially public sector banks, to offload credit to state electricity distribution
companies from their loan book, thereby improving their asset quality.
 Government of India aims to extend insurance, pension and credit facilities to those
excluded from these benefits under the Pradhan Mantri Jan Dhan Yojana (PMJDY).
 To facilitate an easy access to finance by Micro and Small Enterprises (MSEs), the
Government/RBI has launched Credit Guarantee Fund Scheme to provide guarantee
cover for collateral free credit facilities extended to MSEs upto Rs 1 Crore (US$ 0.15
million). Moreover, Micro Units Development & Refinance Agency (MUDRA) Ltd.
was also established to refinance all Micro-finance Institutions (MFIs), which are in the
business of lending to micro / small business entities engaged in manufacturing, trading
and services activities up to Rs 10 lakh (US$ 0.015 million).

Road Ahead
The Indian economy is on the brink of a major transformation, with several policy initiatives
set to be implemented shortly. Positive business sentiments, improved consumer confidence
and more controlled inflation are likely to prop-up the country’s the economic growth.
Enhanced spending on infrastructure, speedy implementation of projects and continuation of
reforms are expected to provide further impetus to growth. All these factors suggest that
India’s banking sector is also poised for robust growth as the rapidly growing business would
turn to banks for their credit needs.

Also, the advancements in technology have brought the mobile and internet banking services to
the fore. The banking sector is laying greater emphasis on providing improved services to their
clients and also upgrading their technology infrastructure, in order to enhance the customer’s
overall experience as well as give banks a competitive edge.
Many banks, including HDFC, ICICI and AXIS are exploring the option to launch contact-less
credit and debit cards in the market shortly. The cards, which use near field communication
(NFC) mechanism, will allow customers to transact without having to insert or swipe.

Exchange Rate Used: INR 1 = US$ 0.0149 as on September 28, 2016

18
Top 10 Banks in India (according to revenue)
1st State Bank of India (SBI)
2nd HDFC Bank
3rd ICICI Bank
4th Axis Bank
5th Punjab National Bank
6th Union Bank of India
7th Canara Bank
8th Bank of Baroda
9th Central Bank of India
10th Bank of India

Branches and ATMs of Scheduled Commercial Banks as of end December 2014

Number of On-site Off-site Total

Bank type
branches ATMs ATMs ATMs

Nationalised banks 33,627 38,606 22,265 60,871

State Bank of India 13,661 28,926 22,827 51,753

Old private sector

4,511 4,761 4,624 9,385
banks

New private sector

1,685 12,546 26,839 39,385
banks

Foreign banks 242 295 854 1,149

TOTAL 53,726 85,000 77,409 1,62,543

19
 UNIT 3
INTRODUCTION TO SECTOR
 PRIVATE SECTOR
The private-sector banks in India represent part of the Indian banking sector that is made up
of both private and public sector banks. The "private-sector banks" are banks where greater
parts of state or equity are held by the private shareholders and not by government.
Banking in India has been dominated by public sector banks since the 1969 when all major
banks were nationalised by the Indian government. However, since liberalisation in
government banking policy in the 1990s, old and new private sector banks have re-emerged.
They have grown faster & bigger over the two decades since liberalisation using the latest
technology, providing contemporary innovations and monetary tools and techniques.
The private sector banks are split into two groups by financial regulators in India, old and new.
The old private sector banks existed prior to the nationalisation in 1969 and kept their
independence because they were either too small or specialist to be included in nationalisation.
The new private sector banks are those that have gained their banking license since the
liberalisation in the 1990s.
The banks, which were not nationalized at the time of bank nationalization that took place
during 1969 and 1980 are known to be the old private-sector banks. These were not
nationalized, because of their small size and regional focus. Most of the old private-sector
banks are closely held by certain communities their operations are mostly restricted to the areas
in and around their place of origin. Their Board of directors mainly consist of locally
prominent personalities from trade and business circles. One of the positive points of
these banks is that, they lean heavily on service and technology and as such, they are likely to
attract more business in days to come with the restructuring of the industry round the corner.
The banks, which came in operation after 1991, with the introduction of economic reforms and
financial sector reforms are called "new private-sector banks". Banking regulation act was then
amended in 1993, which permitted the entry of new private-sector banks in the Indian
banking s sector. However, there were certain criteria set for the establishment of the new
private-sector banks, some of those criteria being: The bank should have a minimum net worth
of Rs. 200 crores.

1. The promoters holding should be a minimum of 25% of the paid-up capital.

2. Reliance Capital, India Post, Larsen & Toubro, Shriram Transport Finance are
companies pending a banking license with the RBI under the new policy, while IDFC
& Bandhan were given a go ahead to start banking services for 2015.
3. Within 3 years of the starting of the operations, the bank should offer shares to public
and their net worth must increased to 300 crores.

20
List Of Private Banks In India :-

Name Year

1. Axis Bank (earlier UTI) 1994

2. Bank of Punjab (actually an old generation private bank since it was not founded under
1989
post-1993 new bank licensing regime)

3. Centurion Bank Ltd. (Merged Bank of Punjab in late 2005 to become Centurion Bank
1994
of Punjab, acquired by HDFC Bank Ltd. in 2008)

4. Development Credit Bank (Converted from Co-operative Bank, now DCB Bank Ltd.) 1995

5. ICICI Bank (previously ICICI and then both merged;total merger SCICI+ICICI+ICICI
1996
Bank Ltd)

6. IndusInd Bank 1994

7. Kotak Mahindra Bank 2003

8. Yes Bank 2005

9. Capital Local Area Bank Ltd. 2000

10. Global Trust Bank (India) (Merged with Oriental Bank of Commerce) 1994

11. Balaji Corporation Limited - Private Loan Company, not a Bank 2010

12. HDFC Bank 1994

13. Bandhan Bank 2015

21
 14. IDFC Bank 2015

 PUBLIC SECTOR
Public Sector Banks (PSBs) are banks where a majority stake (i.e. more than 50%) is held by a
government.[1] The shares of these banks are listed on stock exchanges. There are a total of 27
PSBs in India [21 Nationalized banks + 6 State bank group (SBI + 5 associates) ].
In 2011, IDBI bank and in 2014 Bharatiya Mahila Bank were nationalized with a minimum capital of
Rs 500 crore.
The Central Government entered the banking business with the nationalization of the Imperial
Bank Of India in 1955. A 60% stake was taken by the Reserve Bank of India and the new bank
was named as the State Bank of India. The seven other state banks became the subsidiaries of
the new bank when nationalised on 19 July 1960.[2] The next major nationalisation of banks took
place in 1969 when the government of India, under prime minister Indira Gandhi, nationalised an
additional 14 major banks. The total deposits in the banks nationalised in 1969 amounted to 50
crores. This move increased the presence of nationalised banks in India, with 84% of the total
branches coming under government control.[3]
The next round of nationalisation took place in April 1980. The government nationalised six banks.
The total deposits of these banks amounted to around 200 crores. This move led to a further
increase in the number of branches in the market, increasing to 91% of the total branch network of
the country. The objectives behind nationalisation were:

 To break the ownership and control of banks by a few business families,

 To prevent the concentration of wealth and economic power,
 To mobilize savings from masses from all parts of the country,
 To cater to the needs of the priority sectors......
Total public sector banks are 27 including IDBI and BMB
The share of the banking sector held by the public banks continued to grow through the 1980s,
and by 1991 the public sector banks accounted for 90% of the banking sector. A year later, in
March, 1992, the combined total of branches held by public sector banks was 60,646 across India,
and deposits accounted for Rs. 1,10,000 crore. The majority of these banks were profitable, with
only one out of the 27 public sector banks reporting a loss.[4]
Problem, with nationalised banks reporting a combined loss of Rs. 1160 crores. However, the early
2000s saw a reversal of this trend, such that in 2002-03 a profit of Rs. 7780 crores by the public
sector banks: a trend that continued throughout the decade, with a Rs. 16856 crore profit in 2008-
2009.
List of Public Sector Banks

1. Allahabad Bank
2. Andhra Bank
3. Bank of India
4. Bank of Baroda
5. Bank of Maharashtra
6. Canara Bank
7. Central Bank of India

22
8. Corporation Bank
9. Dena Bank
10. Indian Bank
11. Indian Overseas Bank
12. IDBI Bank
13. Oriental Bank of Commerce
14. Punjab & Sindh Bank
15. Punjab National Bank
16. State Bank of India
17. Syndicate Bank
18. UCO Bank
19. Union Bank of India
20. United Bank of India
21. Vijaya Bank

23
 UNIT 4
COMPANY PROFILE

1) SBI BANK

History of SBI Bank

The evolution of State Bank of India can be traced back to the first decade of the19th century.
It began with the establishment of the Bank of Calcutta in Calcutta, on 2 June 1806. The bank
was redesigned as the Bank of Bengal, three years later, on 2 January 1809. It was the first ever
joint-stock bank of the British India, established under the sponsorship of the Government of
Bengal. Subsequently, the Bank of Bombay (established on 15 April 1840) and the Bank of
Madras (established on 1 July 1843) followed the Bank of Bengal.
An important turning point in the history of State Bank of India is the launch of the first Five
Year Plan of independent India, in 1951. The Plan aimed at serving the Indian economy in
general and the rural sector of the country, in particular. Until the Plan, the commercial banks
of the country, including the Imperial Bank of India, confined their services to the urban sector.
Moreover, they were not equipped to respond to the growing needs of the economic revival
taking shape in the rural areas of the country. Therefore, in order to serve the economy as a
whole and rural sector in particular.
The All India Rural Credit Survey Committee proposed the take over of theImperial Bank of
India, and integrating with it, the former state-owned or state-associate banks. Subsequently, an
Act was passed in the Parliament of India in May 1955. As a result, the State Bank of India
(SBI) was established on 1 July1955. This resulted in making the State Bank of India more
powerful, because as much as a quarter of the resources of the Indian banking system were
controlled directly by the State. Later on, the State Bank of India (Subsidiary Banks) Act was
passed in 1959.
The State Bank of India emerged as a pacesetter, with its operations carried out by the 480
offices comprising branches, sub offices and three Local Head Offices, inherited from the
Imperial Bank. Instead of serving as mere repositories of the community's savings and lending
to creditworthy parties, the State Bank of India catered to the needs of the customers, by
banking purposefully.

24
State Bank of India
(SBI) (LSE: SBID) is the largest bank in India. The bank traces its ancestry back through the
Imperial Bank of India to the founding in 1806 of the Bank of Calcutta, making it the oldest
commercial bank in the Indian Subcontinent. The Government of India nationalized the
Imperial Bank of India in1955, with the Reserve Bank of India taking a 60% stake, and
renamed it the State Bank of India. In 2008, the Government took over the stake held by the
Reserve Bank of India.
SBI provides a range of banking products through its vast network in India and overseas,
including products aimed at NRIs. With an asset base of $126 billion and its reach, it is a
regional banking behemoth. SBI has laid emphasis on reducing the huge manpower through
Golden handshake schemes, which led to a flight of its best and brightest managers which took
to retirement allowances and then went on the become senior managers at new private sector
banks, and computerizing its operations.

The roots of the State Bank of India rest in the first decade of 19th century, when the Bank of
Calcutta, later renamed the Bank of Bengal, was established on2 June 1806. The Bank of
Bengal and two other Presidency banks, namely, the
Bank of Bombay(incorporated on15 April 1840) and the Bank of Madras (incorporated on1
July 1843).. These three banks received the exclusive right to issue paper currency in 1861
with the Paper Currency Act, a
right they retained until the formation of the Reserve Bank of India. The Presidency banks
amalgamated on 27 January 1921, and the reorganized banking entity took as its name Imperial
Bank of India. The Imperial Bank of India continued to remain a joint stock company.

Pursuant to the provisions of the State Bank of India Act (1955), the Reserve Bank of India,
which is India's central bank, acquired a controlling interest in the Imperial Bank of India.
On30 April 1955the Imperial Bank of India became
the State Bank of India In 1959 the Government passed the State Bank of India (Subsidiary
Banks) Act, enabling the State Bank of India to take over eight former State-associated banks
as its subsidiaries. On Sept 13, 2008, State Bank of Saurashtra, one of its Associate Banks,
merged with State Bank of India.

Associate banks
There are six associate banks that fall under SBI, and together these six banks constitute the
State Bank Group. All use the same logo of a blue keyhole and all
the associates use the ”State Bank of" name followed by the regional headquarters' name.
Originally, the then seven banks that became the associate banks belonged to princely states
until the government nationalized them in 1959.In tune with the first Five Year Plan,
emphasizing the development of rural India, the government integrated these banks into State
Bank of India to expand its rural outreach. There has been a proposal to merge all the associate
banks into SBI to create a "mega bank" and streamline operations. The first step along these
lines occurred in September 2008 when State Bank of Saurashtra merged with State Bank of
India, which reduced the number of state banks from seven to six.

25
•State Bank of Indore
•State Bank of Bikaner & Jaipur
•State Bank of Hyderabad
•State Bank of Mysore
•State Bank of Patiala
•State Bank of Travancore

Growth
State Bank of India has often acted as guarantor to the Indian Government, most notably during
Chandra Shekhar’s tenure as Prime Minister of India. With more than 11,111 branches and a
further 6500+ associate bank branches, the SBI has extensive coverage. State Bank of India has
electronically networked all of its branches under Core Banking System(CBS). The bank has
one of the largest ATM networks in the region. More than 8500 ATMs across India. The State
Bank of India has had steady growth over its history, though it was marred by the
Harshad Mehta scam in 1992. In recent years, the bank has sought to expand its overseas
operations by buying foreign banks. It is the only Indian bank to feature in the top 100 world
banks in the Fortune Global 500 rating and various other rankings.

Group companies
•SBI Capital Markets Ltd
•SBI Mutual Fund(A Trust)
•SBI Factors and Commercial Services Ltd
•SBI DFHI Ltd
•SBI Cards and Payment Services Pvt. Ltd
•SBI Life Insurance Co. Ltd-Banc assurance (Life Insurance)
•SBI Funds Management Pvt. Ltd
•SBI Canada

Establishment
The establishment of the Bank of Bengal marked the advent of limited liability, joint-stock
banking in India. So was the associated innovation in banking, viz. the decision to allow the
Bank of Bengal to issue notes, which would be accepted for payment of public revenues within
a restricted geographical area. This right of note issue was very valuable not only for the Bank
of Bengal but also its two siblings, the Banks of Bombay and Madras. It meant an accretion to
the capital of the banks, a capital on which the proprietors did not have to pay any interest.
The concept of deposit banking was also an innovation because the practice of accepting
money for safekeeping (and in some cases, even investment on behalf of the clients) by the
indigenous bankers had not spread as a general habit in most parts of India. But, for a long
time, and especially up to the time that the three presidency banks had a right of note issue,
bank notes and government balances made up the bulk of the investible resources of the banks.
The three banks were governed by royal charters, which were revised from time to time. Each
charter provided for a share capital, four-fifth of which were privately subscribed and the rest
owned by the provincial government. The members of the
board of directors, which managed the affairs of each bank, were mostly proprietary directors
representing the large European managing agency houses.

26
Products Personal 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

Other Services
•Agriculture/Rural Banking
•NRI Services
•ATM Services
•De mat Services
•Corporate Banking
•Internet Banking
•Mobile Banking
•International Banking
•Safe Deposit Locker
•RBIEFT
•E-Pay
•E-Rail
•SBI Vishwa Yatra Foreign Travel Card
•Broking Services
•Gift Cheques

Network Of SBI Bank

SBI Bank India has 52 Foreign Offices in 34 countries. SBI India serves the
international needs of its foreign customers, in addition to conducting retail operations. The
focus of the offices of SBI is India-related business. Few of the countries where SBI Bank has
branches are as under:

•Australia
•Bahamas
•Bahrain
•Bangladesh
•Belgium
•Bhutan
•USA

27
 2) BANK OF INDIA

Bank of India (Hindi: बैंक ऑफ़ इं डिया) (BoI) is commercial bank with headquarters at
Bandra Kurla complex, Mumbai. Founded in 1906, it has been government-owned since
nationalisation in 1969. However, some branches are individually owned, such as Kandia,
Indonesia, etc. Bank of India has 5100 branches as on 31 January 2017, including 56 offices
outside India, which includes five subsidiaries, five representative offices, and one joint
venture. BoI is a founder member of SWIFT (Society for Worldwide Inter Bank Financial
Telecommunications), which facilitates provision of cost-effective financial processing and
communication services.

History
Bank of India was founded on 7 September 1906 by a group of eminent businessmen
from Mumbai, Maharashtra, India. The Bank was under private ownership and control till July
1969 when it was nationalised along with 13 other banks.
Beginning with one office in Mumbai, with a paid-up capital of ₹5 million (US$74,000) and 50
employees, the Bank has made a rapid growth over the years and blossomed into a mighty
institution with a strong national presence and sizable international operations. In business
volume, the Bank occupies a premier position among the nationalised banks.
The bank has 4,963 branches in India spread over all states/ union territories including
specialised branches. These branches are controlled through 54 Zonal Offices. There are 60
branches/ offices and 5 Subsidiaries and 1 joint venture abroad.
The Bank came out with its maiden public issue in 1997 and follow on Qualified Institutions
Placement in February 2008.
The earlier holders of the Bank of India name had failed and were no longer in existence by the
time a diverse group of Hindus, Muslims, Parsees, and Jews helped establish the present Bank
of India in 1906 in Bombay. It was the first bank in India whose promoters aimed to serve all
the communities of India. At the time, banks in India were either owned by Europeans and
served mainly the interests of the European merchant houses, or by different communities and
served the banking needs of their own community.

28
The promoters incorporated the Bank of India on 7 September 1906 under Act VI of 1882,
with an authorised capital of ₹10 million (US$150,000) divided into 100,000 shares each
of ₹100 (US$1.50). The promoters placed 55,000 shares privately, and issued 45,000 to the
public by way of IPO on 3 October 1906; the bank commenced operations on 1 November
1906.
The lead promoter of the Bank of India was Sir Sassoon J. David (1849–1926). He was a
member of the Sassoon family, who in turn were part of a Bombay community of Baghdadi
Jews that was notable for its history of social service. Sir David was a prudent banker and
remained the bank's chief executive from its founding in 1906 until his death in 1926.
The first board of directors of the bank consisted of Sir Sassoon David, Sir Cowasjee Jehangir,
J. Cowasjee Jehangir, Sir Frederick Leigh Croft, Ratanjee Dadabhoy Tata, Gordhandas
Khattau, Lalubhai Samaldas, Khetsety Khiasey, Ramnarain Hurnundrai, Jenarrayen
Hindoomull Dani, and Noordin Ebrahim Noordin.
In 1921, BoI entered into an agreement with the Bombay Stock Exchange to manage its
clearing house.
BoI's international expansion began in 1946 when the bank BoI opened a branch in London,
the first Indian bank to do so. This was also the first post-World War II overseas branch of any
Indian bank.
The 1950s saw BoI open numerous branches abroad: Tokyo and Osaka in 1950, Singapore in
1951, Kenya and Uganda in 1953, Aden in 1953 or 1954, and Tanganyika in 1955.
After a brief hiatus, BoI returned to international expansion, opening a branch in Hong Kong in
1960. A branch in Nigeria followed in 1962.
Then came nationalizations abroad, and at home. The Government of Tanzania nationalised
BoI's operations in Tanzania in 1967 and folded them into the government-owned National
Commercial Bank, together with those of Bank of Baroda and several other foreign banks. Two
years later, in 1969, the Government of India nationalised the 14 top banks, including Bank of
India. In the same year, the People's Democratic Republic of Yemen nationalised BoI's branch
in Aden, and the Nigerian and Ugandan governments forced BoI to incorporate its branches in
those countries. The next year, National Bank of Southern Yemen incorporated BoI's branch in
Yemen, together with those of all the other banks in the country; this is now National Bank of
Yemen. BoI was the only Indian bank in the country.
In 1972 BoI sold its Uganda operation to Bank of Baroda. The next year BoI opened a
representative office in Jakarta.
In 1974 BoI opened a branch in Paris. This was the first branch of an Indian bank in Europe.
In 1976 the Nigerian government acquired 60% of the shares in Bank of India (Nigeria).
In 1978 BoI opened a branch in New York. Also in the 1970s, BoI opened an agency in San
Francisco.
In 1980 Bank of India (Nigeria), changed its name to Allied Bank of Nigeria to reflect the fact
that it was no longer a subsidiary of Bank of India.
In 1986 BoI acquired Parur Central Bank in (Ernakulam District, Kerala State) in a rescue.
Parur Central Bank (or Karur Central Bank, or Paravur Central Bank) had been founded in

29
1930, and at the time of its failure had 51 branches. BoI amalgamated Parur Central Bank in
1990.
The next year, 1987, BoI took over the three UK branches of Central Bank of India (CBI). CBI
had been caught up in the Sethia fraud and default and the Reserve Bank of India required it to
transfer its branches.

 2003: BoI opened a representative office in Shenzhen.

 2005: BoI opened a representative office in Vietnam.
 2006: BoI plans to upgrade the Shenzen and Vietnam representative offices to branches,
and to open representative offices in Beijing, Doha, and Johannesburg. In addition, BoI
plans to establish a branch in Antwerp and a subsidiary in Dar-es-Salaam, marking its
return to Tanzania after 37 years.
In 2007 BoI acquired 76% of Indonesia-based PT Bank Swadeshi.
BoI established a wholly owned subsidiary, Bank of India (New Zealand) Ltd., in Auckland,
New Zealand on 6 October 2011. Then BoI established a wholly owned subsidiary, Bank of
India (Uganda) Ltd., on 18 June 2012. Most recently, BoI opened its wholly owned subsidiary
Bank of India (Botswana) Ltd., on 9 August 2013.

3) ICICI BANK

ICICI Bank (Industrial Credit and Investment Corporation of India) is

an Indian multinational banking and financial services company headquartered
in Mumbai, Maharashtra, India, with its registered office in Vadodara. In 2014, it was the
second largest bank in India in terms of assets and third in term of market capitalisation. It
offers a wide range of banking products and financial services for corporate and retail
customers through a variety of delivery channels and specialised subsidiaries in the areas
of investment banking, life, non-life insurance, venture capital and asset management. The
bank has a network of 4,450 branches and 14,404 ATMs in India, and has a presence in 19
countries including India.
The bank has subsidiaries in the United Kingdom and Canada; branches in United
States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar, Oman, Dubai International Finance
Centre, China and South Africa; and representative offices in United Arab Emirates,
Bangladesh, Malaysia and Indonesia. The company's UK subsidiary has also established
branches in Belgium and Germany.
ICICI's shareholding in ICICI Bank was reduced to 46 percent, through a public offering of
shares in India in 1998, followed by an equity offering in the form of American Depositary

30
Receipts on the NYSE in 2000. ICICI Bank acquired the Bank of Madura Limited in an all-
stock deal in 2001 and sold additional stakes to institutional investors during 2001-02.
In the 1990s, ICICI transformed its business from a development financial institution offering
only project finance to a diversified financial services group, offering a wide variety of
products and services, both directly and through a number of subsidiaries and affiliates like
ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE.
In 2000, ICICI Bank became the first Indian bank to list on the New York Stock Exchange
with its five million American depository shares issue generating a demand book 13 times the
offer size.
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of
ICICI and two of its wholly owned retail finance subsidiaries, ICICI Personal Financial
Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was
approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of
Gujarat at Ahmedabad in March 2002 and by the High Court of Judicature at Mumbai and the
Reserve Bank of India in April 2002.
In 2008, following the 2008 financial crisis, customers rushed to ICICI ATMs and branches in
some locations due to rumours of adverse financial position of ICICI Bank. The Reserve Bank
of India issued a clarification on the financial strength of ICICI Bank to dispel the rumours.
The bank has contributed to the set-up of a number of Indian institutions to establish financial
infrastructure in the country over the years:

 National Stock Exchange - The National Stock Exchange was promoted by India's leading
financial institutions (including ICICI Ltd.) in 1992 on behalf of the Government of India
with the objective of establishing a nationwide trading facility for equities, debt
instruments and hybrids, by ensuring equal access to investors all over the country through
an appropriate communication network.
 Credit Rating Information Services of India Limited (CRISIL) - In 1987, ICICI Ltd along
with UTI set up CRISIL as India's first professional credit rating agency. CRISIL offers a
comprehensive range of integrated products and service offerings which include credit
ratings, capital market information, industry analysis and detailed reports.
 National Commodities and Derivatives Exchange Limited - NCDEX is an online multi-
commodity exchange, set up in 2003, by ICICI Bank Ltd, LIC, NABARD, NSE, Canara
Bank, CRISIL, Goldman Sachs, Indian Farmers Fertiliser Cooperative Limited (IFFCO)
and Punjab National Bank.
 Financial Innovation Network and Operations Pvt Ltd. - ICICI Bank has facilitated setting
up of "FINO Cross Link to Case Link Study" in 2006, as a company that would provide
technology solutions and services to reach the underserved and underbanked population of
the country. Using technologies like smart cards, biometrics and a basket of support
services, FINO enables financial institutions to conceptualise, develop and operationalise
projects to support sector initiatives in microfinance and livelihoods.
 Entrepreneurship Development Institute of India - Entrepreneurship Development Institute
of India (EDII), an autonomous body and not-for-profit society, was set up in 1983, by the
erstwhile apex financial institutions like IDBI, ICICI, IFCI and SBI with the support of

31
 the Government of Gujarat as a national resource organisation committed to
entrepreneurship development, education, training and research.
 North Eastern Development Finance Corporation - North Eastern Development Finance
Corporation (NEDFI) was promoted by national level financial institutions like ICICI Ltd
in 1995 at Guwahati, Assam for the development of industries, infrastructure, animal
husbandry, agri-horticulture plantation, medicinal plants, sericulture, aquaculture, poultry
and dairy in the North Eastern states of India. NEDFI is the premier financial and
development institution for the North East region.
 Asset Reconstruction Company India Limited - Following the enactment of the
Securitisation Act in 2002, ICICI Bank, together with other institutions, set up Asset
Reconstruction Company India Limited (ARCIL) in 2003, to create a facilitative
environment for the resolution of distressed debt in India. ARCIL was established to
acquire non-performing assets (NPAs) from financial institutions and banks with a view to
enhance the management of these assets and help in the maximisation of recovery. This
would relieve institutions and banks from the burden of pursuing NPAs, and allow them to
focus on core banking activities.
 Credit Information Bureau of India Limited - ICICI Bank has also helped in setting
up Credit Information Bureau of India Limited (CIBIL), India's first national credit bureau
in 2000. CIBIL provides a repository of information (which contains the credit history of
commercial and consumer borrowers) to its members in the form of credit information
reports. The members of CIBIL include banks, financial institutions, state financial
corporations, non-banking financial companies, housing finance companies and credit card
companies.
 Institutional Investor Advisory Services India Limited (IiAS) – ICICI Bank has indirectly
invested in Institutional Investor Advisory Services, through ICICI Prudential Life
Insurance Company, in IiAS. IiAS is a voting advisory firm aka proxy firm, dedicated to
providing participants in the Indian market with data, research and commentary. It provides
recommendations on resolutions placed before shareholders of over 300 companies.

SUBSIDIARY
Domestic

 ICICI Prudential Life Insurance Company Limited

 ICICI Lombard General Insurance Company Limited
 ICICI Prudential Asset Management Company Limited
 ICICI Prudential Trust Limited
 ICICI Securities Limited
 ICICI Securities Primary Dealership Limited
 ICICI Venture Funds Management Company Limited
 ICICI Home Finance Company Limited
 ICICI Investment Management Company Limited
 ICICI Trusteeship Services Limited
 ICICI Prudential Pension Funds Management Company Limited

32
International
 ICICI Bank USA
 ICICI Bank UK PLC
 ICICI Bank Canada
 ICICI Bank Germany
 ICICI Bank Eurasia Limited Liability Company
 ICICI Securities Holdings Inc.
 ICICI Securities Inc.
 ICICI International Limited

.
4) YES BANK

YES BANK is India's fifth largest private sector Bank, founded by Rana Kapoor in 2004. Yes
Bank is the only Greenfield Bank licence awarded by the RBI in the last two decades. YES
BANK is a “Full Service Commercial Bank”, and has steadily built a Corporate, Retail & SME
Banking franchise, Financial Markets, Investment Banking, Corporate Finance, Branch
Banking, Business and Transaction Banking, and Wealth Management business lines across
the country

 Corporate and Institutional Banking-The Corporate & Institutional Banking (C&IB)

division at Yes Bank contribute a major part of the bank with a turnover of over ₹ 1,000
crores.
 Commercial Banking
 Investment Banking-Yes Bank's is a major player in Investment Banking in India and is
involved in the identification, structuring and execution of transactions for its clients in
diverse industries and geographies. Some of the typical transactions include mergers &
acquisitions, divestitures, private equity syndication and IPO advisory.
 Corporate Finance-YES BANK's Corporate Finance practice offers a combination of
advisory services and customised products to optimise risk based on "Knowledge
Arbitrage"
 Financial Marketing-The Financial Markets (FM) business model provides Risk
Management solutions related to foreign currency and interest rate exposures of clients.

33
 Retail Banking-YES BANK has banking network of over 600 branches and 2,000 ATMs
giving it a major presence in urban India. Yes bank is one of the fastest growing private
bank in India.
As on 31 Dec 2015, the bank had 630 branches and 2000 ATMs. It had a balance sheet size of
₹ 1,23,200 crore and Gross NPA of 0.42% fifth largest bank in private sector.
Yes Bank equity shares are listed on Bombay Stock Exchange and the National Stock
Exchange of India.

Shareholders (as on 31-Mar-2013) Shareholding

Promoter Group 25.72%

Foreign Institutional Investors (FII) 48.95%

Individual shareholders 09.44%

Insurance Companies 09.27%

Banks/Financial Institutions/Mutual Funds/UTI 03.87%

Others 02.855%

Total 100.0%

34
 CHAPTER 2

LITERATURE REVIEW

35
Literature review is a study involving a collection of literatures in the selected area of research
in which the scholar has limited experience. The Banking sector has played a crucial role in the
development of the economy. It has attracted the attention of a number of scholars and
administrators. A lot of literature is available on the performance of the banking sector in India.
Some of the important studies that were reviewed have been presented in this section.

1. Rakesh H M & Ramya T J (2014) In their research paper titled “A Study on Factors
Influencing Consumer Adoption of Internet Banking in India” tried to examine the
factors that influence internet banking adoption. Using PLS, a model is successfully proved
and it is found that internet banking is influenced by its perceived reliability, Perceived ease
of use and Perceived usefulness. In the marketing process of internet banking services
marketing expert should emphasize these benefits its adoption provides and awareness can
also be improved to attract consumers’ attention to internet banking services.

2. Amruth Raj Nippatlapalli (2013) In his research paper “A Study on Customer

Satisfaction of Commercial Banks: Case Study on State Bank of India”. This paper
present Customer satisfaction, a term frequently used in marketing, is a measure of how
products and services supplied by a company meet or surpass customer expectation.
Customer satisfaction is defined as "the number of customers, or percentage of total
customers, whose reported experience with a firm, its products, or its services (ratings)
exceeds specified satisfaction goals. “Banking in India originated in the last decades of the
18th century. The first banks were The General Bank of India, NOW which started in 1786,
and Bank of Hindustan, which started in 1790; both are now defunct. The oldest bank in
existence in India is the State Bank of India, which originated in the Bank of Calcutta in
June 1806, which almost immediately became the Bank of Bengal. This was one of the three
presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all
three of which were established under charters from the British East India Company. For
many years the Presidency banks acted as quasi-central banks, as did their successors. The
three banks merged in 1921 to form the Imperial Bank of India.

3. Mr. Vijay Prakash Gupta & Dr. P. K. Agarwal (2013) In their research paper
“Comparative Study of Customer Satisfaction in Public Sector and Private Sector
Banks in India”. This paper gives with the introduction of liberalization policy and RBI's
easy norms several private and foreign banks have entered in Indian banking sector which
has given birth to cut throat competition amongst banks for acquiring large customer base
and market share. Banks have to deal with many customers and render various types of
services to its customers and if the customers are not satisfied with the services provided by
the banks then they will defect which will impact economy as a whole since banking system
plays an important role in the economy of a country, also it is very costly and difficult to
recover a dissatisfied customer. Since the competition has grown manifold in the recent
times it has become a herculean task for organizations to build loyalty, the reason being that
the customer of today is spoilt for choice. It has become imperative for both public and
private sector banks to perform to the best of their abilities to retain their customers by
catering to their explicit as well as implicit needs. Many a times it happens that the banks
fail to satisfy their customer which can cause huge losses for banks and there the need of

36
 this study arises. The purpose of this research article is to examine the customer satisfaction
among group of customer towards the public sector& private sector banking industries in
India. Study is cross-sectional and descriptive in nature. The researcher tries to makes an
effort to clarify the Customer Service satisfaction in Indian banking Sector. Descriptive
research design is used for this study, where the data is collected through the questionnaire.
The information is gathered from the different customers of the two banks, viz., PNB and
HDFC Bank located in the Meerut Region, Uttar Pradesh. Hundred bank respondents from
each bank were contacted personally in order to seek fair and frank responses on quality of
service in banks. The service quality model developed by Zeithamal, Parsuraman and Berry
(1988) has been used in the present study. The analysis clearly shows that there exists wide
perceptual difference among Indian (public sector) banks regarding overall service quality
with their respective customers, when compared to Private sector banks. Whereas the said
perceptual difference in private banks is narrow.

4. Ms. Nisha Malik & Mr. Chand Prakash Saini (Jul 2013) In their research titled on
“Private Sector Banks Service Quality and Customer Satisfaction” A Empirical Study
two Private Sector Banks”. This research paper is an effort to examine the relationship
between service quality and customer satisfaction of two private sectors bank of India.
Service quality has been described as a form of attitude that results from the comparison of
prospect with recital (Cronin and Taylor, 1992, Parasuraman et al, 1985). Gronroos 1982)
argued that customers, while evaluating the quality of service, compare the service they
expect with perceptions of the services they actually receive. Since financial products
offered by various banks are similar by nature then why any particular bank of product of
any bank is preferred than others a matter of interest for academician as well as banking
industry. They may be difference between customers of public and private sector banks, but
why are two banks of one sector being preferred differently by customers. This research
study is an effort to find out the answer of these questions.

5. Vijay M. Kumbhar (2011) In his research paper “Factors Affecting the Customer
satisfaction In E-Banking: Some evidences Form Indian Banks”. This study evaluates
major factors (i.e. service quality, brand perception and perceived value) affecting on
customers’ satisfaction in e-banking service settings. This study also evaluates influence of
service quality on brand perception, perceived value and satisfaction in e-banking. Required
data was collected through customers’ survey. For conducting customers’ survey liker scale
based questionnaire was developed after review of literature and discussions with bank
managers as well as experts in customer service and marketing. Collected data was analyzed
using principle component (PCA) using SPSS 19.0. A result indicates that, Perceived Value,
Brand Perception, Cost Effectiveness ,Easy to Use, Convenience, Problem Handling,
Security/Assurance and Responsiveness are important factors in customers satisfaction in e-
banking it explains 48.30 per cent of variance. Contact Facilities, System Availability,
Fulfillment, Efficiency and Compensation are comparatively less important because these
dimensions explain 21.70 percent of variance in customers’ satisfaction.
Security/Assurance, Responsiveness, Easy to Use, Cost Effectiveness and Compensation are
predictors of brand perception in e-banking and Fulfillment, Efficiency, Security/Assurance,
Responsiveness, Convenience, Cost Effectiveness, Problem Handling and Compensation are
predictors of perceived value in e-banking.

37
6. Pooja Malhotra & Balwinder SINGH (2009) In their research paper “The Impact of
Internet Banking on Bank Performance and Risk: The Indian Experience”. The paper
describes the current state of Internet banking in India and discusses its implications for the
Indian banking industry. Particularly, it seeks to examine the impact of Internet banking on
banks’ performance and risk. Using information drawn from the survey of 85 scheduled
commercial bank’s websites, during the period of June 2007, the results show that nearly 57
percent of the Indian commercial banks are providing transactional Internet banking
services. The univariate analysis indicates that Internet banks are larger banks and have
efficiency ratios and profitability as compared to non-Internet banks. Internet banks rely
more heavily on core deposits for funding than non-Internet banks do. However, the
multiple regression results reveal that the profitability and offering of Internet banking does
not have any significant association, on the other hand, Internet banking has a significant
and negative association with risk profile of the banks.

7. Shaza W. Ezzi (April 2014) In their research paper titled “A Theoretical Model for
Internet Banking: Beyond Perceived Usefulness and Ease of Use” tried to inquired
different types of electronic banking like ATM’s, telephone banking, and electronic funds
transfer, Internet banking like has evolved from consumers’ needs to have superior access to
banking services clear of most banks teller-staffed, normal operating hours. Additionally,
Internet banking has grown swiftly from the recent and the span increases in ecommerce.
Internet banking (IB) continues to govern the landscape of electronic banking as consumers
continue to use IB to complete schedule banking transactions in addition to conducting on-
line sales and purchasing. This study presents a theoretical model considered to help
researchers and practitioners better understand the acceptance and adoption of Internet
Banking. The proposed model maybe particularly useful in developing nations where
consumers are loath to use Internet Banking even when the services are available. However,
a review of several studies that have investigated consumers’ acceptance of Internet banking
services from a multiplicity of perspectives have not reached a clear consensus of the factors
that contribute to overall consumer acceptance and adoption. The paper concludes with
discussions of the managerial implications and avenues for future research.

8. Kartikeya Bolar (2014) In their research paper “End-user Acceptance of Technology

Interface In Transaction Based Environment “This paper presents Creators and investors
of technology need information about the customers’ assessment of their technology
interface based on the features and various quality dimensions to make strategic decisions in
improving technology interfaces and compete on various quality dimensions. The research
study identifies the technology interface dimensions as perceived by the end-users in a
transaction based environment (viz. Internet banking) in India, using exploratory factor
analysis. The influence of these dimensions on the utility of technology interface and hence
the usage is examined by Structural Equation Modeling. The moderating role of user
demographics and technology comfort is also tested. Managerial implications are discussed.

38
9. Dorra Gherib (2014) In their research paper titled “Adoption and diffusion of internet
banking: case of Tunisian banking sector “tried to observe the embracing of Internet
banking in the Tunisian banking industry. The aim is to make out factors that accelerate or
slow down the implementation process. The literature review enables identifying a set of
variables: organizational, individual and structural. The research methodology used within
this study is the case study. Five case studies in banking sector were executed. The sample
is shaped by banks that adopted the Internet Baking as a modernization. The analysis
allowed the willpower of the related dimensions of the aforesaid variables (competition,
perceived benefits, and organizational compatibility). Indeed, this research has exposed
some variables that hamper the implementation of technological innovations.

10. Nabil Hussein Al-Fahim (2013) In his research titled “An tentative Study of Factors
distressing the Internet Banking espousal: A Qualitative Study among Postgraduate
Students” tried to find out the factors that affect the internet banking espousal among
postgraduate’ students in International Islamic University Malaysia (IIUM).Approach- Semi
structured interviews with eight informant; four adopters and four non-adopters on
postgraduate’ students were conducted to explore this issue. The results revealed that
adopters and non-adopters realized that internet banking (IB) has quite a lot of benefits and
amenities. However, non-adopters were concerned about some factors like trust, ease of use,
awareness and security. The results also showed that adopters had positive influence on use
of online banking and they did not have problems with these factors because they had
sufficient knowledge and experience in using online banking. The findings are important to
enable bank Executives to have a better understanding of clients’ perception to adopt
internet banking. This will help banks’ managers and owners formulate strategies that could
significantly affect IBA among their customers.

11. Anil Kumar and Manoj Kumar Dash (2013) In their research paper “Constructing a
Measurement in Service Quality for Indian Banks: Structural Equation Modeling
Approach”...The aim of this paper is to construct a measure in service quality for Indian
banks and establishes a causal relationship of service attributes performance with customer
satisfaction. The SERVQUAL model is used. The quantification of service quality led to the
attempt to construct an index. The index is constructed using Structural Equation Modeling
(SEM) and American Customer Satisfaction Index (ACSI) as the underlying frameworks.
The analysis is based on data of 200 bank customers from the Delhi NCR. An adapted ACSI
is enhanced and improved to accommodate two exogenous constructs. The results indicate
that service quality variables are important antecedents of customer satisfaction and
retention. These antecedents of service quality have a positive significantly relationship with
customer satisfaction. The study concludes with an analysis of how different dimensions of
service quality performance attribute impact on customer satisfaction and retention. Such a
framework should provide valuable insights to the bank manager to identify key service
performance indicators and to design more effective and efficient marketing and
management strategies to satisfy their customer.

39
12. Shilpi Khandelwal (2013) In his research titled on “E Banking: Factors of Adoption in
India” This paper present the last decade has witnessed a drastic change in the economic
and banking environment all over the world. With the economic and financial sector reforms
introduced in the country since early 1990s, the operating environment for banks in India
has also undergone a rapid change. Increasingly, more and more people are switching to
electronic platforms for executing financial transactions. Internet banking has brought about
a 360 degree change in the entire banking industry. The wider usage of cell phone and
internet certainly seems to be playing a role in blurring physical boundaries, and unlocking a
whole new world of opportunities for banks in tapping newer customer segments and in
recording greater volume of transactions. For the banks, technology has emerged as a
strategic resource for achieve in higher efficiency, control of operations, productivity and
profitability. For customers, it is the realization of their anywhere, anytime, anyway banking
dream. This has prompted the banks to embrace technology to meet the increasing customer
expectation and face the tough competition. This research paper is focused on what are the
drivers that drive consumers towards adoption of E banking. How consumers have accepted
internet banking and how to improve the usage rate were the focus of research area in this
study.

13. Donnelie K Muzividzi, Rangarirai Mbizi & Tinashe Mukwazhe (2013) In their research
paper “An Analysis of Factors That Influence Internet Banking Adoption among
Intellectuals: Case of Chinhoyi University of Technology“. This paper investigate the
adoption on internet banking has remained sluggish despite the efforts by banks to promote
the technology. The purpose of the research project was to identify the factors that affect the
adoption of internet banking in a bid to construct ways to salvage the situation. The research
focused on intellectuals who better understand technology than the general public. Data was
collected using questionnaires and interviews from the population of 5000 students and
academic staff at Chinhoyi University of Technology. A sample of 450 students and staff
were selected from the population. The research identified various factors that impose
barriers and enhance adoption of internet banking. Chief among these were compromised
security of transactions and marketing exposure. It also unearthed the impact of
demographic on internet banking adoption. Two hypotheses were tested, the first one which
was meant to determine if there exist any relationship between age and internet banking
adoption. It was concluded that there is a negative relationship between age and internet
banking adoption. The second hypothesis assumed an association between internet banking
and level of education. Education was deemed a prerequisite in enhancing the smooth
adoption of internet banking and hence one should have a significant level of education to
take up the technology. In waging a protracted war against low levels of internet banking
adoption the research concluded banks should rather concentrate in promoting the product
(internet banking). Bank should also institute measures to guarantee the security of
transactions to internet bank users as this remains the stumbling block to many potential
customers.

40
14. Ankit Kesharwani & Gajulapally Radhakrishna (2013) In their research paper “Drivers
and Inhibitors of Internet Banking Adoption in India”. This paper research on different
banks is on condition that e-banking services, as this would revolutionize their profits. Since
internet banking in India is still in its nascent stage, it is essential for e-banking institutions
to enhance reception and usage of internet as a banking channel by their customers. This
paper has reviewed the most of seminal studies in the area of diffusion of innovation and
makes an attempt to do an experimental research that looked into the factors that drives and
inhibits internet banking usage in India. An investigative factor analysis followed by a
positive factor analysis has been applied on 362 internet banking users. Findings resulted in
seven factors – perceived benefit, hacking and fraud risk, performance risk, computer self-
efficacy, technology intricacy, social influence, and pricing concerns. The results suggest
that acceptance and usage of internet banking services can turn into a fundamental concern
for future research, as the drivers overcoming the inhibitors over time at an influencing rate.
Moreover, this study also compares the findings with extant diffusion of innovation
literature and identified several additional factors that can affect internet banking adoption
in India.

41
 CHAPTER 3

RESEARCH
METHODOLOGY

42
  Research
Research is a process in which the researcher wishes to find out the end result for a given
problem and thus the solution helps in future course of action. The research has been defined as
“A careful investigation or enquiry especially through search for new facts in branch of
knowledge”
The study has been done in one of the leading Ecommerce website. This study is based on both
primary and secondary data, which have been obtained from published sources i.e. internet,
questionnaire, books, etc.

 Objectives of the study:

The study was intended to observe the extent of customers’ perception towards the e-banking
services of private and public sector banks.
In particular the customers’ satisfaction and predicaments are proposed by the tested as most of
the customers face the practical problems in their e-banking activities. Hence the following
main objectives of the study are formulated with significance to carry out the research process
in a systematic manner:
1. To find the benefit of e-banking service to customers’.
2. To perceive the opinion of the customers’ of both private and public sector banks
regarding the prevailing electronic transactions in BANGALORE.
3. To expose the problems of the customers’ from their opinion in connection with the
e-banking services.
4. To identify the role of customers’ satisfaction in the improvement of ebanking
services.
5. To offer valuable suggestions in e-banking transactional activities to the customers’
present day requirement.

 Hypothesis:
The following are the research hypotheses that are formulated for the purpose of strengthening
the analysis of the data collected and to perceive the results from the opinions of the customers
selected for the study:

Null Hypothesis (Ho): There is no significant impact of the e-banking services on

customer perception.

Alternative Hypothesis (H1): There is a significant impact of the e-banking services

on customer perception.

43
 TOOLS FOR DATA COLLECTION
It is to be of great importance that the correct method to be chosen for any research works that
is being undertaken, for working on the above-specified topic the right type on right time to
right method of research would be to:
I ) Questionnaire Method.
The above three methods would help in collecting the primary data for the project and the
secondary data can be collected by the means of earlier research (if any) or through internet.

 PRIMARY DATA-Primary data can be explained, therefore, as information collected

from sources such as personal interviews, questionnaires or surveys with a specific
intention. In this research study I have used questionnaire method, interview method
and survey method.

 SECONDARY DATA – Secondary data is information that is already available

somewhere, whether it be in journals, on the internet, in a company’s record’s or, on a
large scale, in corporate and government archives. In this research study the data is
derived from the past journals, articles, company website and internet.

 SAMPLING SIZE- 100

 SAMPLING METHOD – Convenient Sampling method will be adopted for the study.

 SAMPLING PLAN AND METHODOLOGY

 Proposed plan of work

 Review of literature and the topic in details.

 Preparation of questionnaire.

 Distribution of questionnaire to respond and collection of response.

 Writing of report.

 Analysis and interpret of details.

 DIFFERENT STATISTICAL TOOL USED

 Quantitative Analysis: The data is collected through the response for each factor under
point rating system. They were given rating such as strongly agree, agree moderate
disagree, and strongly disagree
.

44
 Qualitative Analysis: The data collected through questionnaire regarding the purpose
of approvable and positive and negative aspects of existing system where analyzed
quantitatively and interference was summarized.

45
 CHAPTER 4

DATA ANALYSIS AND

INTERPRETATION

46
Analysis of data is a process of inspecting, cleaning, transforming, and
modeling data with the goal of discovering useful information, suggesting
conclusions, and supporting decision making. Data analysis has multiple facets
and approaches, encompassing diverse techniques under a variety of names, in
different business, science, and social science domains.
1) Gender

Count of
Gender Gender
Female 54
Male 46

Gender

46% Female
54% Male

ANALYSIS :
From the above table it has been shown as 46% respondents are MALE and 54% respondents
are FEMALE.
INTERPRETATION:
Maximum no of respondents are FEMALE

47
 2) Occupation
Occupation Count of Occupation
Business 10
Employee 39
Faculty 1
home maker 1
Housewife 1
Student 48

Occupation

47

36

10
3 1 1 1 1

BUSINESS EMPLOYEE EMPLOYEE FACULTY HOME HOUSEWIFE STUDENT STUDENT

MAKER

ANALYSIS:
In the above case 10 respondents are BUSINESS PEOPLE, 39 respondents are EMPLOYEE,
1 respondents is FACULTY, 1 respondents is HOME MAKER, 1 respondents is
HOUSEWIFE and 48 respondents are STUDENTS

INTERPRETATION:
Maximum no of respondents are STUDENTS

48
 3) Level of Education Attained

Count of Level of Education

Level of Education Attained Attained
Bachelor 41
High School 4
Masters 55

Level of Education Attained

Bachelor
41%
High School
55%
Masters

4%

ANALYSIS:
In the above observation 55% of respondents have attained MASTERS, 41% of respondents
have attained BACHELOR and 4% of respondents have attained HIGH SCHOOL

INTERPRETATION:
Maximum no of respondents have attained MASTERS level of Education.

49
 4) Annual income
Count of Annual
Annual Income Income
Between 1 lakh to 2
lakh 20
Between 2 lakh to 4
lakh 19
Less than 1 lakh 26
More than 4 lakhs 35

Annual Income

MORE THAN 4 LAKHS 35

LESS THAN 1 LAKH 26

BETWEEN 2 LAKH TO 4 LAKH 19

BETWEEN 1 LAKH TO 2 LAKH 20

0 5 10 15 20 25 30 35 40

ANALYSIS:
In the above observation 35% of respondents have MORE THAN 4 LAKH income, 26% of
respondents have LESS THAN 1 LAKH income, 19% of respondents have income
BETWEEN 2 to 4 LAKHS, 20% of respondents have income BETWEEN 1 to 2 LAKH.

INTERPRETATION:
Maximum respondents have their annual income MORE THAN 4 LAKHS

50
 5) Name of the bank in which you have your account

Name of the Bank in which you have an Count of Name of the Bank in which you have an
Bank Account Bank Account
AXIS BANK 16
CENTRAL BANK 2
CORPORATION BANK 1
HDFC BANK 11
ICICI BANK 21
IDBI BANK 3
KOTAK MAHINDRA BANK 4
ORIENTAL BANK 1
SBI BANK 41

Name of the Bank in which you have

an Bank Account
SBI BANK 36
ORIENTAL BANK 1
KOTAK MAHINDRA BANK 4
IDBI BANK 3
ICICI BANK 23
HDFC BANK 14
CORPORATION BANK 1
CENTRAL BANK 2
AXIS BANK 16

0 5 10 15 20 25 30 35 40

ANALYSIS:
In the above observation 41 respondents have account in SBI BANK, 16 respondents have
account in AXIS BANK, 2 respondents have account in CENTRAL BANK, 1 respondents
have account in CORPORATION BANK, 11 respondents have account in HDFC BANK, 21
respondents have account in ICICI BANK, 3 respondents have account in IDBI BANK, 4
respondents have account in KOTAK MAHINDRA BANK, 1 respondents have account in
ORIENTAL BANK
INTERPRETATION:
Maximum no of respondents have account in SBI BANK

51
 6) Name of the Bank which you have Internet Banking Service.

Name of the Bank in which you have Internet Count of Name of the Bank in which you have Internet
Banking Account Banking Account
AXIS BANK 16
CENTRAL BANK 2
CORPORATION BANK 1
HDFC BANK 14
ICICI BANK 23
IDBI BANK 3
KOTAK MAHINDRA BANK 4
ORIENTAL BANK 1
SBI BANK 36

Name of the Bank in which you have

Internet Banking Account
SBI BANK 36
ORIENTAL BANK 1
KOTAK MAHINDRA BANK 4
IDBI BANK 3
ICICI BANK 23
HDFC BANK 14
CORPORATION BANK 1
CENTRAL BANK 2
AXIS BANK 16

0 5 10 15 20 25 30 35 40

ANALYSIS:
In the above observation 36 respondents have account in SBI BANK, 16 respondents have
account in AXIS BANK, 2 respondents have account in CENTRAL BANK, 1 respondents
have account in CORPORATION BANK, 14 respondents have account in HDFC BANK, 23
respondents have account in ICICI BANK, 3 respondents have account in IDBI BANK, 4
respondents have account in KOTAK MAHINDRA BANK, 1 respondents have account in
ORIENTAL BANK
INTERPRETATION:
Maximum no of respondents have account in SBI BANK

52
 7) How frequently you visit your Bank branch per month?
How frequently you visit your Bank Count of How frequently you visit your Bank
branch per month? branch per month?
1 to 4 times 39
5 to 8 times 8
9 to 12 times 2
never 51

HOW FREQUENTLY YOU VISIT YOUR BANK

BRANCH PER MONTH?

1 to 4 times
39%
5 to 8 times
51%
9 to 12 times
never

8%
2%

ANALYSIS:
In the above case 39% people visit bank 1 TO 4 TIMES PER MONTH, 8% people visit 5
TO 8 TIMES, 2% people visit 9 TO 12 TIMES, and 51% people NEVER VISITED BANK
IN A MONTH.

INTREPRETATION:
Maximum people DON’T VISIT BANK IN A MONTH

53
 8) How frequently do you use your ATM?
How frequently you use your ATM per Count of How frequently you use your ATM
month? per month?
1 to 4 times 56
5 to 8 times 22
9 to 12 times 7
more than 12 times 6
Never 9

How frequently you use your ATM

per month ?
NEVER 9

MORE THAN 12 TIMES 6

9 TO 12 TIMES 7

5 TO 8 TIMES 22

1 TO 4 TIMES 56

0 10 20 30 40 50 60

ANALYSIS
In the above observation 56% people visit ATM 1 TO 4 TIMES IN A MONTH, 22% people
visit ATM 5 TO 8 TIMES IN A MONTH, 7% people visit ATM 9 TO 12 TIMES IN A
MONTH, 6% people visit ATM MORE THAN 12 TIMES IN A MONTH. 9% on people
NEVER VISITED ATM IN A MONTH.
INTERPRETATION
Maximum no of respondents visit ATM 1 TO 4 TIMES IN A MONTH.

54
 9) Have you purchased any product online
Have you purchased any product online Count of Have you purchased any product online
No 17
Yes 83

Have you purchased any product

online

17%

No
Yes

83%

ANALYSIS
In the above observation 83% respondents PURCHASED Product online and 17%
respondents DID NOT PURCHASED ONLINE.
INTERPRETATION
Maximum respondents PURCHASED PRODUCT ONLINE

55
 10) Approximately how many times you have purchased product online in last 12 months?
Count of Approximately how many times you
Approximately how many times you have have purchased product online in last 12
purchased product online in last 12 months? months?
1 to 4 times 42
5 to 8 times 22
9 to 12 times 11
more than 12 times 16
Never 9

Approximately how many times you

have purchased product online in last
12 months?
NEVER 9

MORE THAN 12 TIMES 16

9 TO 12 TIMES 11

5 TO 8 TIMES 22

1 TO 4 TIMES 42

0 5 10 15 20 25 30 35 40 45

ANALYSIS
In the above observation 42% respondents purchased product 1TO 4 TIMES IN LAST 12
MONTHS, 22% respondents purchased product 5 TO 8 TIMES IN LAST 12 MONTHS,
11% respondents purchased products 9 TO 12 TIMES IN LAST 12 MONTHS, 16%
respondents purchased product MORE THAN 12 TIMES IN LAST 12 MONTHS.
INTERPRETATION
Maximum no of respondents purchased product 1 TO 4 TIMES IN LAST 12 MONTHS.

56
 11) What is the payment method you use while purchasing product online?
What is the payment method you use while Count of What is the payment method you
purchasing product online? use while purchasing product online?
Cash on delivery 52
Internet Banking 16
Payment Using Debit card and Credit card 32

What is the payment method you use

while purchasing product online?
PAYMENT USING DEBIT CARD AND CREDIT
32
CARD

INTERNET BANKING 16

CASH ON DELIVERY 52

0 10 20 30 40 50 60

ANALYSIS
In the above observation, 52% customers use to pay CASH ON DELIVERY, further study
says that only 16% user’s use INTERNET BANKING and 32% customers use their DEBIT
AND CREDIT CARDS AS PAYMENT METHOD.
INTERPRETATION
Maximum number of respondents use to adopt CASH ON DELIVERY as mode of payment.

57
 12) How frequently you use Internet Banking?
how frequently you use Internet Banking Count of how frequently you use Internet Banking
1 to 4 times 39
5 to 8 times 19
9 to 12 times 11
More than 12 times 13
Never 18

how frequently you use Internet

Banking
NEVER 18

MORE THAN 12 TIMES 13

9 TO 12 TIMES 11

5 TO 8 TIMES 19

1 TO 4 TIMES 39

0 5 10 15 20 25 30 35 40 45

ANALYSIS
In the above observation, 39% of the attendants use INTERNET BANKING 1 TO 4 TIMES,
19% of the attendants use 5 TO 8 TIMES, 11% of the attendants use 9 TO 12 TIMES, 13%
attendants use it MORE THAN 12 TIMES, and 18% of the attendants said they NEVER
USE INTERNET BANKING SERVICE.
INTERPRETATION
Maximum number of respondents were 39% who use internet banking service 1 TO 4
TIMES.

58
 13) What is the problem you find in using internet banking?
What is the problem you find in using Count of What is the problem you find in using
Internet Banking Internet Banking
Inadequate Knowledge 9
Internet Issue 48
Money got stuck... 1
No such issues 6
None 1
Security Reason 35

What is the problem you find in using

Internet Banking
SECURITY REASON 35

NONE 1

NO SUCH ISSUES 6

MONEY GOT STUCK... 1

INTERNET ISSUE 48

INADEQUATE KNOWLEDGE 9

0 10 20 30 40 50 60

ANALYSIS
In the above observation, 9% of the users have INADEQUATE KNOWLEDGE about
internet banking, 48% have reported INTERNET ISSUE, 1% respondents said MONEY
GOT STUCK, 6% respondents have NO SUCH ISSUES, 1% said NO PROBLEM AT
ALL and 35% respondents have SECURITY ISSUE.
INTERPRETATION
Maximum number of respondents said there was INTERNET ISSUE while using internet
banking.

59
 14) How frequently you make payments through Internet banking?
How frequently you make payments through Count of How frequently you make payments
Internet banking? through Internet banking?
1 to 4 times 33
5 to 8 times 25
9 to 12 times 8
more than 12 times 8
Never 26

How frequently you make payments

through Internet banking?
NEVER 26

MORE THAN 12 TIMES 8

9 TO 12 TIMES 8

5 TO 8 TIMES 25

1 TO 4 TIMES 33

0 5 10 15 20 25 30 35

ANALYSIS
In the above observation, 33% customers use to pay through INTERNET BANKING 1 TO 4
TIMES, 25% of them use to pay 5 TO 8 TIMES, 8% customers use to pay 9 TO 12 TIMES,
also 8% use MORE THAN 12 TIMES, and 26% customers NEVER USE INTERNET
BANKING as payment option.
INTERPRETATION
Maximum no of respondents use internet banking for 1 TO 4 TIMES.

60
 15) Are you satisfied with the Internet banking of your bank?
Are you satisfied with the Internet banking of your Count of Are you satisfied with the
bank? Internet banking of your bank?
No 22
Yes 78

Are you satisfied with the Internet

banking of your bank?

22%
No
Yes

78%

ANALYSIS
In the above observation 78% of respondents are SATISFIED WITH INTERNET
BANKING of their bank and 22% of respondents ARE NOT SATISFIED WITH
INTERNET BANKING.
INTERPRETATION
Maximum respondents are SATISFIED WITH THE INTERNET BANKING in their bank

61
 16) Which bank, in your view has most secure Internet banking?
Which bank, in your view has most secure Count of Which bank, in your view has most
Internet banking? secure Internet banking?
AXIS Bank 1
ICICI Bank 31
IDBI Bank 6
SBI Bank 46
YES Bank 16

Which bank, in your view has most secure

Internet banking?
1%
16%

AXIS Bank
31%
ICICI Bank
IDBI Bank
SBI Bank

6% YES Bank
46%

ANALYSIS
In the above observation 46% respondent find SBI BANK SECURED, 16% respondent find
YES BANK SECURED, 6% respondents find IDBI BANK SECURED, 31% respondents
ICICI BANK SECURED, 1% respondents find AXIS BANK SECURED.
INTERPRETATION
Maximum no of respondents feel that SBI BANK is much more secured.

62
 17) What will be your rating towards the Internet banking services of SBI?
What will be your rating towards the Internet Count of What will be your rating towards the
banking of SBI BANK Internet banking of SBI BANK
agree 30
disagree 16
neutral 31
strongly agree 14
strongly disagree 9

What will be your rating towards the

Internet banking of SBI BANK
STRONGLY DISAGREE 9

STRONGLY AGREE 14

NEUTRAL 31

DISAGREE 16

AGREE 30

0 5 10 15 20 25 30 35

ANALYSIS
In the above observation it is shown that 30% of respondents AGREE, 16% of respondents
DISAGREE, 31% respondents are NEUTRAL, 14% of respondents STRONGLY AGREE
and 9% of respondents STRONGLY DISAGREE.
INTERPRETATION
Maximum no of respondents are NEUTRAL about the rating of Internet Banking of SBI
BANK

63
18) What will be your rating towards the Internet banking of ICICI BANK?
What will be your rating towards the Count of What will be your rating towards the
Internet banking of ICICI BANK Internet banking of ICICI BANK
Agree 26
disagree 12
Neutral 38
strongly agree 18
strongly disagree 6

What will be your rating towards the

Internet banking of ICICI BANK
STRONGLY DISAGREE 6

STRONGLY AGREE 18

NEUTRAL 38

DISAGREE 12

AGREE 26

0 5 10 15 20 25 30 35 40

ANALYSIS
In the above observation it is shown that 26% of respondents AGREE, 12% of respondents
DISAGREE, 38% respondents are NEUTRAL, 18% of respondents STRONGLY AGREE
and 6% of respondents STRONGLY DISAGREE.
INTERPRETATION
Maximum no of respondents are NEUTRAL about the rating of Internet Banking of ICICI
BANK

64
 19) What will be your rating towards the Internet banking Employees of Yes Bank?

Count of What will be your rating towards the

What will be your rating towards the Internet banking of YES Bank
Internet banking of YES Bank
agree 14

disagree 27

neutral 36

strongly agree 8

strongly disagree 15

What will be your rating towards the Internet

banking of YES Bank
STRONGLY DISAGREE 15

STRONGLY AGREE 8

NEUTRAL 36

DISAGREE 27

AGREE 14

0 5 10 15 20 25 30 35 40

ANALYSIS
In the above observation it is shown that 14% of respondents AGREE, 27% of respondents
DISAGREE, 36% respondents are NEUTRAL, 8% of respondents STRONGLY AGREE
and 15% of respondents STRONGLY DISAGREE.
INTERPRETATION
Maximum no of respondents are NEUTRAL about the rating of Internet Banking of YES
BANK

65
 20) What will be your rating towards the Internet banking services of BANK OF INDIA Bank?
What will be your rating towards the
Internet banking of BANK OF INDIA Count of What will be your rating towards the Internet
Bank banking of BANK OF INDIA Bank
Agree 14
disagree 27
neutral 36
strongly agree 8
strongly disagree 15

What will be your rating towards the

Internet banking of BANK OF INDIA Bank
STRONGLY DISAGREE 15

STRONGLY AGREE 8

NEUTRAL 36

DISAGREE 27

AGREE 14

0 5 10 15 20 25 30 35 40

ANALYSIS
In the above observation it is shown that 14% of respondents AGREE, 27% of respondents
DISAGREE, 36% respondents are NEUTRAL, 8% of respondents STRONGLY AGREE
and 15% of respondents STRONGLY DISAGREE.
INTERPRETATION
Maximum no of respondents are NEUTRAL about the rating of Internet Banking of BANK
OF INDIA BANK

66
 21) Do you feel safe to use Internet Banking Service?
Count of Do you feel safe to use Internet
Do you feel safe to use Internet Banking? Banking?
No 27
Yes 73

Do you feel safe to use Internet

Banking?

27%
No
Yes
73%

ANALYSIS
In the above observation 73% feel SAFE to use INTERNET BANKING and 27% feel NOT
SAFE to use INTERNET BANKING.
INTERPRETATION
Maximum no of respondents feel INTERNET BANKING SAFE.

67
 HYPOTHESIS TESTING

NULL HYPOTHESIS: There is no significant impact of the e-banking services on

customer perception.
ALTERNATE HYPOTHESIS: There is a significant impact of the e-banking services on
customer perception.

QUESTIONS FOR STATISTICAL TEST

1.Gender
2. Occupation?
3. Level of Education Attained?
4. Annual Income?
5. Name Of Your Bank In which you have Bank Account
6. Name Of Your Bank In which you have Internet Banking services
7. How frequently you Visit your Bank Branch per month?
8. How frequently you use an ATM per month?
9. Have you purchased any products online?
10. Approximately how many times you have purchased product online in last 12 months?
11. What is the payment method you use while purchasing product online?
12. How frequently you use Internet Banking?
13. What is the problem you find in using Internet Banking?
14. How frequently you make payments through Internet banking?
15. Are you satisfied with the Internet banking service of your bank?
16. Which bank, in your view has most secure Internet banking services?
17. What will be your rating towards the Internet banking services of SBI BANK? (where 1
indicates worst and 5 indicates excellent )
18 What will be your rating towards the Internet banking services of ICICI BANK? (where 1
indicates worst and 5 indicates excellent )
19. What will be your rating towards the Internet banking Employees of YES BANK?(where
1 indicates worst and 5 indicates excellent)

20. What will be your rating towards the Internet banking Employees of BANK OF INDIA
BANK?(where 1 indicates worst and 5 indicates excellent)

21. Do you feel safe to use Internet Banking Service?

68
 LIKERT SCALE:
5: Strongly Agree; 4: Agree; 3: Neutral; 2: Disagree; 1: Strongly Disagree

Calculating the Correlation and Correlation Interpretation

Now we're ready to compute the correlation value. The formula for the
correlation is:

We use the symbol r to stand for the correlation. Through the magic of
mathematics it turns out that r will always be between -1.0 and +1.0. If the
correlation is negative, we have a negative relationship; if it's positive, the
relationship is positive. So, the correlation for our 100 respondents is 0.987(The
entire calculations is done through Microsoft Excel) and the same is given in the
below table. From the table it shows that the variables have a fairly strong
positive relationship. The correlation is one of the most common and most useful
statistics. A correlation is a single number that describes the degree of
relationship between two variables. The data shown below tells us how this
statistic is computed.
Here the Researcher is trying to find out the relationship between two variables.
The hypothesis drawn tells there is a significant impact of the e-banking services
on customer perception or there is no significant impact of the e-banking services
on customer perception.

69
Here's the data for the 100 respondents and the scores are recorded below:
Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 Total Tfinal
4 5 3 2 4 3 5 3 3 1 5 5 43 48
5 3 5 5 4 3 2 4 4 4 4 5 48 51
4 5 5 4 3 5 3 5 2 4 4 3 47 51
4 4 5 4 4 5 5 5 4 4 3 2 49 53
1 4 4 4 3 3 5 3 4 3 4 2 40 43
5 4 4 3 3 4 4 4 4 3 4 3 45 48
5 5 2 5 4 4 3 2 1 1 3 3 38 42
3 4 3 4 2 2 3 2 1 1 4 3 32 35
4 5 4 4 4 4 3 5 4 4 2 3 46 49
4 3 2 5 3 1 4 2 2 4 4 5 39 42
3 2 5 5 4 3 4 2 2 3 2 2 37 42
3 5 1 4 5 5 4 3 4 1 1 5 41 45
4 1 3 5 2 2 3 4 1 2 4 3 34 37
1 1 5 4 3 1 1 2 5 5 5 3 36 39
2 3 5 3 4 3 5 1 1 3 3 2 35 39
1 5 5 4 3 4 1 2 4 3 4 1 37 42
3 4 3 3 4 4 3 5 4 3 4 5 45 49
4 1 4 5 5 1 2 4 1 5 4 5 41 44
4 4 5 2 2 3 1 5 4 3 5 2 40 45
5 3 3 5 5 2 5 1 4 4 4 3 44 49
2 2 4 2 4 2 4 3 2 3 4 3 35 38
2 5 3 4 1 4 1 2 3 3 4 3 35 39
3 5 1 5 4 4 1 4 3 5 2 5 42 46
4 2 1 5 3 3 4 3 3 4 2 2 36 39
4 4 3 3 5 4 1 3 4 5 3 3 42 47
3 5 2 4 4 3 2 1 5 5 4 5 43 47
1 5 3 2 4 3 4 2 4 1 4 3 36 41
4 1 5 5 5 3 4 1 5 4 5 5 47 51
4 2 2 4 1 2 1 2 3 4 3 4 32 35
2 3 1 1 2 5 5 3 3 5 4 4 38 41
3 5 2 4 4 3 4 2 3 3 3 3 39 43
5 5 2 1 5 2 1 2 4 4 1 3 35 38
2 4 5 2 1 3 4 2 1 1 3 5 33 38
5 4 5 2 5 2 4 4 5 5 1 4 46 49
5 4 5 3 2 4 5 3 2 4 3 5 45 49
5 5 5 3 4 4 4 5 5 3 5 2 50 54

70
4 2 5 3 3 5 2 3 4 4 4 3 42 47
5 3 5 4 4 2 5 5 5 4 2 4 48 51
4 5 5 4 4 5 4 1 5 4 2 4 47 50
3 4 3 1 5 3 4 3 3 1 3 3 36 39
4 4 2 4 3 5 5 4 3 4 4 4 46 49
4 5 5 3 3 3 3 2 3 2 4 1 38 42
5 4 4 2 3 4 3 3 1 5 4 2 40 45
5 5 4 1 4 1 5 5 3 4 4 4 45 49
1 3 5 4 4 2 2 2 3 2 4 5 37 41
2 5 3 4 3 3 1 2 2 5 4 3 37 41
2 5 4 2 5 2 4 4 4 4 2 3 41 45
3 2 1 4 4 2 4 5 3 4 2 1 35 39
3 4 2 4 3 3 4 2 1 4 3 3 36 40
5 4 4 5 4 3 4 5 5 3 5 3 50 53
2 3 4 1 5 5 3 5 2 5 1 3 39 42
3 4 4 2 2 5 5 4 3 4 5 4 45 49
5 5 4 1 4 3 4 2 4 2 4 1 39 43
5 4 5 2 2 3 3 5 4 3 4 4 44 47
4 4 4 2 5 5 5 3 4 4 1 3 44 48
3 4 1 2 4 5 5 1 4 3 4 3 39 43
3 4 5 2 1 3 2 3 5 4 4 3 39 43
2 5 5 2 4 3 2 3 4 4 4 3 41 45
5 5 5 4 2 5 1 5 4 2 4 5 47 50
4 5 4 4 4 2 4 3 2 4 3 4 43 47
5 5 5 5 3 5 5 2 2 2 2 2 43 47
4 3 4 4 4 5 3 2 4 3 4 5 45 48
5 5 4 4 4 2 5 5 3 3 3 3 46 50
3 3 1 3 5 2 1 4 2 5 4 4 37 41
4 2 5 4 4 3 4 4 2 3 4 2 41 46
5 1 5 4 4 4 4 5 4 4 4 2 46 49
4 5 2 2 3 4 4 3 3 5 4 2 41 44
4 2 2 1 5 3 4 5 3 4 3 4 40 45
4 1 5 4 3 4 3 5 2 5 4 5 45 48
4 5 3 2 4 4 4 4 2 4 1 2 39 43
5 4 5 1 5 3 4 4 4 2 3 3 43 47
2 4 4 5 5 4 4 4 1 4 5 5 47 51
5 4 4 4 5 4 4 1 3 4 5 4 47 50
2 3 4 3 3 3 5 5 5 2 2 3 40 44
5 4 4 4 3 4 4 3 5 3 4 4 47 50

71
 1 4 4 3 4 5 3 2 3 4 4 3 40 44
4 3 5 4 5 2 3 3 3 3 3 3 41 44
4 5 4 2 3 3 4 5 2 2 1 2 37 42
3 1 2 3 3 4 5 2 5 4 1 2 35 38
5 5 4 2 4 3 4 2 4 4 4 2 43 47
5 3 3 3 1 4 1 2 5 5 1 3 36 40
3 4 3 4 1 2 1 4 2 2 3 4 33 37
3 1 5 4 1 1 4 3 3 5 4 5 39 42
3 5 4 2 5 2 4 4 4 4 3 5 45 48
5 3 4 1 4 2 3 3 4 5 4 2 40 44
2 5 4 5 5 4 2 1 3 3 5 5 44 48
3 4 4 5 4 2 4 2 3 5 4 3 43 47
2 4 5 4 1 4 1 2 4 4 3 3 37 41
2 2 5 3 1 2 3 1 4 1 4 5 33 37
4 4 5 5 3 5 5 4 5 3 4 3 50 53
3 5 3 2 5 5 2 3 4 3 3 4 42 45
4 3 2 1 4 2 4 2 3 5 1 4 35 39
5 4 3 4 5 2 2 5 5 2 5 3 45 49
3 5 3 1 4 5 5 5 4 5 2 3 45 49
4 5 2 5 4 3 5 3 2 4 3 3 43 46
3 5 4 3 2 3 5 1 3 4 3 4 40 43
4 4 4 3 4 2 5 5 3 4 4 5 47 52
3 4 2 4 3 4 3 2 3 4 5 3 40 43
3 2 4 5 4 4 2 2 3 3 4 3 39 43
2 2 3 1 5 2 5 1 3 2 3 3 32 35

And, here is the Correlation Table:

Total Tfinal
Total 1
Tfinal 0.9873 1

Since the correlation is nothing more than a quantitative estimate of the

relationship, we would expect a positive correlation. What does a "positive
relationship" mean in this context? It means that, in general, higher scores on one

72
variable tend to be paired with higher scores on the other and that lower scores on
one variable tend to be paired with lower scores on the other.

Testing the Significance of a Correlation

Once the data is computed and we know the correlation, we will now determine
the probability that the observed correlation occurred by chance. That is, we can
conduct a significance test. Most often we are interested in determining the
probability that the correlation is a real one and not a chance occurrence. In this
case, you are testing the mutually exclusive hypotheses:

Null Hypothesis: r=0

Alternative Hypothesis: r ≠ 0

 Hypothesis

Null Hypothesis Ho - : There is no significant impact of the e-banking services on

customer perception.
ALTERNATE HYPOTHESIS: There is a significant impact of the e-banking services on
customer perception.

The easiest way to test this hypothesis is to find the critical values of r. As in all
hypotheses testing, you need to first determine the significance level. Here, the
researcher has used the common significance level of alpha = 0.05. This means that
the researcher is conducting a test where the odds that the correlation is a chance
occurrence are no more than 5 out of 100. Before we look up the critical value in a
table the researcher have computed the degrees of freedom or df. The df is simply
equal to N-2 or, in this example, is 100-2 = 98. Finally, we have to decide whether
we are doing a one-tailed or two-tailed test.

In this case, since we have no strong prior theory to suggest whether the
relationship would be positive or negative, the researcher has opted for the two-
tailed test. With these three pieces of information -- the significance level (alpha =
.05)), degrees of freedom (df = 98), and type of test (two-tailed) -- we can now test
the significance of the correlation. When we look up this value in the Critical Value
r Table the researcher found that the critical value is 0.175. This means that if my

73
correlation is greater than 0.175 or less than -0.175 (remember, this is a two-tailed
test) we can conclude that the odds are less than 5 out of 100 that this is a chance
occurrence. Since my correlation of 0.987is actually quite a bit higher, the
researcher concludes that it is not a chance finding and that the correlation is
"statistically significant" (given the parameters of the test).

Hence the researcher rejects the null hypothesis and accepts the alternative

Regression Output

SUMMARY
OUTPUT
Regression
Statistics
Multiple 0.99983
R 02
0.99966
R Square 05
Adjusted 0.99294
R Square 91
Standard 0.76653
Error 60
Observati
ons 150

ANOVA
Significa
df SS MS F nce F
Regressio 257798.4 2577 7.599E-
n 1 50 98 43874 259
87.54905 0.587
Residual 149 05 5
Total 150 257886
Low Upp
Upp er er
Coeffici Standard Lower er 95.0 95.0
ents Error t Stat P-value 95% 95% % %

74
 #N/ #N/ #N/
Intercept 0 #N/A #N/A #N/A #N/A A A A
0.91681 662.3 2.3E- 0.914077 0.91 0.91 0.91
Tfinal 23 0.001384 805 260 2 95 40 954

The output is given in the coefficients column in the last set of output
(Y)= a + b(X)
1. a = 0 (Intercept Coefficient)
2. b =0.92 (Coefficient of X i.e. slope)
So our regression equation is Y =0 + 0.92 (X)
Also in the regression statistics output gives the goodness of fit
measure
3. R square = 0.999 which measures the fit
This means 99.90% of Y is determined by X

75
 CHAPTER 5

FINDINGS,
RECOMMENDATIONS &
CONCLUSION

76
FINDINGS
 From the above table it has been shown as 46% respondents are MALE and 54%
respondents are FEMALE.
 In the above case 10 respondents are BUSINESS PEOPLE, 39 respondents are
EMPLOYEE, 1 respondents is FACULTY, 1 respondents is HOME MAKER, 1
respondents is HOUSEWIFE and 48 respondents are STUDENTS
 In the above observation 55% of respondents have attained MASTERS, 41% of
respondents have attained BACHELOR and 4% of respondents have attained HIGH
SCHOOL
 In the above observation 35% of respondents have MORE THAN 4 LAKH income, 26%
of respondents have LESS THAN 1 LAKH income, 19% of respondents have income
BETWEEN 2 to 4 LAKHS, 20% of respondents have income BETWEEN 1 to 2 LAKH.
 In the above observation 41 respondents have account in SBI BANK, 16 respondents have
account in AXIS BANK, 2 respondents have account in CENTRAL BANK, 1 respondents
have account in CORPORATION BANK, 11 respondents have account in HDFC
BANK, 21 respondents have account in ICICI BANK, 3 respondents have account in
IDBI BANK, 4 respondents have account in KOTAK MAHINDRA BANK, 1
respondents have account in ORIENTAL BANK
 In the above observation 36 respondents have account in SBI BANK, 16 respondents have
account in AXIS BANK, 2 respondents have account in CENTRAL BANK, 1 respondents
have account in CORPORATION BANK, 14 respondents have account in HDFC
BANK, 23 respondents have account in ICICI BANK, 3 respondents have account in
IDBI BANK, 4 respondents have account in KOTAK MAHINDRA BANK, 1
respondents have account in ORIENTAL BANK
 In the above case 39% people visit bank 1 TO 4 TIMES PER MONTH, 8% people visit
5 TO 8 TIMES, 2% people visit 9 TO 12 TIMES, and 51% people NEVER VISITED
BANK IN A MONTH.
 In the above observation 56% people visit ATM 1 TO 4 TIMES IN A MONTH, 22%
people visit ATM 5 TO 8 TIMES IN A MONTH, 7% people visit ATM 9 TO 12 TIMES
IN A MONTH, 6% people visit ATM MORE THAN 12 TIMES IN A MONTH. 9% on
people NEVER VISITED ATM IN A MONTH.
 In the above observation 83% respondents PURCHASED Product online and 17%
respondents DID NOT PURCHASED ONLINE.
 In the above observation 42% respondents purchased product 1TO 4 TIMES IN LAST 12
MONTHS, 22% respondents purchased product 5 TO 8 TIMES IN LAST 12 MONTHS,
11% respondents purchased products 9 TO 12 TIMES IN LAST 12 MONTHS, 16%
respondents purchased product MORE THAN 12 TIMES IN LAST 12 MONTHS.
 In the above observation, 52% customers use to pay CASH ON DELIVERY, further
study says that only 16% user’s use INTERNET BANKING and 32% customers use
their DEBIT AND CREDIT CARDS AS PAYMENT METHOD.
 In the above observation, 39% of the attendants use INTERNET BANKING 1 TO 4
TIMES, 19% of the attendants use 5 TO 8 TIMES, 11% of the attendants use 9 TO 12
TIMES, 13% attendants use it MORE THAN 12 TIMES, and 18% of the attendants said
they NEVER USE INTERNET BANKING SERVICE.
 In the above observation, 9% of the users have INADEQUATE KNOWLEDGE about
internet banking, 48% have reported INTERNET ISSUE, 1% respondents said MONEY

77
 GOT STUCK, 6% respondents have NO SUCH ISSUES, 1% said NO PROBLEM AT
ALL and 35% respondents have SECURITY ISSUE.
 In the above observation, 33% customers use to pay through INTERNET BANKING 1
TO 4 TIMES, 25% of them use to pay 5 TO 8 TIMES, 8% customers use to pay 9 TO 12
TIMES, also 8% use MORE THAN 12 TIMES, and 26% customers NEVER USE
INTERNET BANKING as payment option.
 In the above observation 78% of respondents are SATISFIED WITH INTERNET
BANKING of their bank and 22% of respondents ARE NOT SATISFIED WITH
INTERNET BANKING.
 In the above observation 46% respondent find SBI BANK SECURED, 16% respondent
find YES BANK SECURED, 6% respondents find IDBI BANK SECURED, 31%
respondents ICICI BANK SECURED, 1% respondents find AXIS BANK SECURED.
 In the above observation it is shown that 30% of respondents AGREE, 16% of
respondents DISAGREE, 31% respondents are NEUTRAL, 14% of respondents
STRONGLY AGREE and 9% of respondents STRONGLY DISAGREE.
 In the above observation it is shown that 26% of respondents AGREE, 12% of
respondents DISAGREE, 38% respondents are NEUTRAL, 18% of respondents
STRONGLY AGREE and 6% of respondents STRONGLY DISAGREE.
 In the above observation it is shown that 26% of respondents AGREE, 12% of
respondents DISAGREE, 38% respondents are NEUTRAL, 18% of respondents
STRONGLY AGREE and 6% of respondents STRONGLY DISAGREE.
 In the above observation it is shown that 14% of respondents AGREE, 27% of
respondents DISAGREE, 36% respondents are NEUTRAL, 8% of respondents
STRONGLY AGREE and 15% of respondents STRONGLY DISAGREE.
 In the above observation 73% feel SAFE to use INTERNET BANKING and 27% feel
NOT SAFE to use INTERNET BANKING.

78
RECOMMENDATIONS

After careful observation and analysis of Primary Research, following recommendations are
put forward.
 It has been witnessed that the major area of concern for any bank is the customer service
and customer satisfaction, thus just like the private sector banks, it is high time that the
public sector banks also start concentrating more on the customers and the services
provided to them.
 The services provided by the public sector banks must be quick and fast. This is a major
disadvantage for public sector banks due to which majority of the respondents prefer
private bank services.
 More ATM coverage should be provided for the convenience of the customers.
 No limit on cash withdrawals on ATM cards.
 The public sector bank should bring out new schemes at time-to-time so that more people
can be attracted. Even some gifts and prizes may be offered to the customers for their
retention.
 24 hours banking should be induced so as to facilitate the customers who may not have
a free time in the daytime. It will help in facing the competition more effectively.
 The charges for saving account opening are high, so they should also be reduced.
 Customers generally complain that full knowledge is not granted to them. Thus, the bank
should properly disclose the features of the product and services to the customers.
Moreover door to door services can also be introduced by bank.
 The need of the customer should properly be understood so that customer feels satisfied.
The relationship value should be maintained.

From the Secondary Research done, the following recommendations are put forward.
 Public sector banks must try to maintain their operating expenses and income in a much
better way which will help them in increasing their net profit and gross profit margin.
 Public sector banks must see to it that there is efficient management of shareholder’s
funds as well as assets of the firm so that they can generate more profits as compared to
private sector banks.
 Also, public sector banks must try to maintain sufficient amount of assets with them so
that they can pay off their financial obligations easily.
 The public sector banks must also maintain a certain amount of cash reserves with them
so that they can meet their short term obligations easily.

79
CONCLUSION
The customers now days are not only exposed of what type of service is being provided by
banks in India but in the world as a whole. They expect much more than what is actually being
provided. So the new coming banking sector has to provide and cater to all the needs of the
customers otherwise it is difficult to survive in the competition coming up. They not only
expect the safety of money but also best ways to invest that money which need needs to be
fulfilled. Banks need to have a better outlook towards to actually what customers are requiring.
Entries of the private sector banks have made the competition tougher. If a bank is not
functioning properly it is being closed. So it is difficult to face these types of conditions.

Thus, to strive the cut throat competition given to the public sector banks by the private sector
banks, the public sector will have to pull up their shoes to be at the better half part of the race
else the time is very near which can make these public sector banks just a memory or a history
for everyone.

80
 CHAPTER 6

BIBLIOGRAPHY

81
Journals

1. Rakesh H M & Ramya T J (2014) In their research paper titled “A Study on Factors
Influencing Consumer Adoption of Internet Banking in India”
2. Amruth Raj Nippatlapalli (2013) In his research paper “A Study on Customer
Satisfaction of Commercial Banks: Case Study on State Bank of India”
3. Mr. Vijay Prakash Gupta & Dr. P. K. Agarwal (2013) In their research paper
“Comparative Study of Customer Satisfaction in Public Sector and Private Sector
Banks in India”.
4. Ms. Nisha Malik & Mr. Chand Prakash Saini (Jul 2013) In their research titled on
“Private Sector Banks Service Quality and Customer Satisfaction”
5. Vijay M. Kumbhar (2011) In his research paper “Factors Affecting the Customer
satisfaction In E-Banking: Some evidences Form Indian Banks”.
6. Pooja Malhotra & Balwinder SINGH (2009) In their research paper “The Impact of
Internet Banking on Bank Performance and Risk: The Indian Experience”.
7. Shaza W. Ezzi (April 2014) In their research paper titled “A Theoretical Model for
Internet Banking: Beyond Perceived Usefulness and Ease of Use”
8. Kartikeya Bolar (2014) In their research paper “End-user Acceptance of Technology
Interface In Transaction Based Environment “
9. Dorra Gherib (2014) In their research paper titled “Adoption and diffusion of
internet banking: case of Tunisian banking sector “
10. Nabil Hussein Al-Fahim (2013) In his research titled “An tentative Study of Factors
distressing the Internet Banking espousal: A Qualitative Study among
Postgraduate Students”
11. Anil Kumar and Manoj Kumar Dash (2013) In their research paper “Constructing a
Measurement in Service Quality for Indian Banks: Structural Equation Modeling
Approach”.
12. Shilpi Khandelwal (2013) In his research titled on “E Banking: Factors of Adoption
in India”
13. Donnelie K Muzividzi, Rangarirai Mbizi & Tinashe Mukwazhe (2013) In their
research paper “An Analysis of Factors That Influence Internet Banking Adoption
among Intellectuals: Case of Chinhoyi University of Technology“.
14. Ankit Kesharwani & Gajulapally Radhakrishna (2013) In their research paper
“Drivers and Inhibitors of Internet Banking Adoption in India”.

82
Books

1. PERFORMANCE MEASUREMENT IN FINANCE, John Knight .

2. FINANCIAL PERFORMANCE, Rory Knight, Marc Bertoneche.
3. KRISHNASWAMI,O.R, Methodology of Research In Social Sciences, Himalaya
Publishing House, 2014
4. RESEARCH METHODOLOGY [Kindle Edition] R. PANNEERSELVAM (Author)
5. Khan, M.Y. & Jain, P.K. (2007), “Financial Management”. Tata McGraw-Hill
Education
6. Kothari, C.R. (2010), “Statistical methods”, S Chand & Sons, New Age International
(P) Ltd Publishers, New Delhi.
7. Reddy, G.S (2012), “Financial Management”, Himalaya Publishing House Pvt. Ltd,
Mumbai.
Studies, vol.2, No.5, pp 64-76.

Websites
www.investopedia.com
www.moneycontrol.com
www.sbi.co.in
www.icici.com
www.yesbank.com
www.boi.com
www.wikipedia.com

83
APPENDIX

84
 Internet Banking Questionnaire
This survey is designed to understand the customer views on using
Internet Banking Services. Your participation in this survey is
greatly appreciated.
1) Gender : Male ( ) Female( )

2) Occupation:

3) Level of Education Attained : High School ( ) Bachelor ( ) Master ( ) PhD

( )

4) Annual Income : Less Than 1 Lakh ( ) Between 1 to 2 Lakh ( ) Between 2 to 4

lakh ( ) More than 4 lakh( )

5) Name of your Bank in which you have Bank Account :

6) Name Of Your Bank In which you have Internet Banking services:

7) How frequently you visit your Bank Branch per month?

Never ( ) 1 to 4 times ( ) 5 to 8 times ( ) 9 to 12
times ( ) More than 12 times ( )
8) How frequently you use ATM per month?
Never ( ) 1 to 4 times ( ) 5 to 8 times ( ) 9 to 12
times ( ) More than 12 times ( )

9) Have you purchased any product online?

Yes ( ) No ( )

10) Approximately how many times you have purchased product online in last 12
months?
Never ( ) 1 to 4 times ( ) 5 to 8 times ( ) 9 to 12 times ( ) more than 12 times ( )

11) What is the payment method you use while purchasing product online?
Cash on delivery ( ) Payment using Debit or Credit Card ( ) Internet Banking ( )

12) How frequently you use Internet Banking?

Never ( ) 1 to 4 times ( ) 5 to 8 times ( ) 9 to 12 times ( ) more than 12 times ( )

85
13) What is the problem you find in using Internet Banking?
Internet Issue ( ) Inadequate Knowledge ( ) Security Reason ( )

14) How frequently you make payments through Internet Banking?

Never ( ) 1 to 4 times ( ) 5 to 8 times ( ) 9 to 12 times ( ) more than 12 times ( )

15) Are you satisfied with the Internet Banking service of your Bank?
Yes ( ) No ( )

16) Which bank in your view has most secure Internet Banking service?
ICICI Bank ( ) SBI Bank ( ) YES Bank ( ) Bank of India ( ) Other ( )

17) What will be your rating towards the Internet Banking service of SBI BANK?(
where 1 indicates strongly disagree and 5 is strongly agree)
1( ) 2( ) 3( ) 4( ) 5( )

18) What will be your rating towards the Internet Banking service of ICICI BANK?(
where 1 indicates strongly disagree and 5 is strongly agree)
1( ) 2( ) 3( ) 4( ) 5( )

19) What will be your rating towards the Internet Banking service of YES BANK?(
where 1 indicates strongly disagree and 5 is strongly agree)
1( ) 2( ) 3( ) 4( ) 5( )

20) What will be your rating towards the Internet Banking service of Bank Of India ?(
where 1 indicates strongly disagree and 5 is strongly agree)
1( ) 2( ) 3( ) 4( ) 5( )

21) Do you feel safe to use Internet Banking Service?

YES ( ) NO( )

86