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Seat No.

Enrolment No: 18MBA30021



[As a partial of fulfilment of the Master of Business Administration for

Summer Internship Program]

Submitted to
MBA Department

LDRP-Institute of Technology and Research, Gandhinagar.

(Affiliated to Kadi Sarva Vishwavidyalaya, Gandhinagar)

Under the Guidance of

Prof. Hemali G Broker

Submitted by
Name: Hitendrakumar .C. Parmar

Sign of External Examiner Sign of Internal Examiner

_____________________ ______________________

LDRP-Institute of Technology and Research, Gandhinagar.

MBA Department Batch: 2018-2020
As a part of our course curriculum I had to go through a Summer Internship Project
Report on any topic to get the right exposure to the practical aspects of business

I want to express my gratitude for the experience and practical knowledge that I earned
during the Summer Internship. In this project report I had presented my great experience
in the form of words. In making the project report theoretical knowledge was needed
more than the practical which was given to us by my professors in my institute

The project flows logically consisting of a questionnaire. I hope that the findings and the
suggestions will help the company, confidently to formulate its strategy in comparison to
its competitors. I have enjoyed my report preparation and have learnt lots of new things. I
have tried my level best to make this report a reader friendly & also did my level best to
full fill the objective of the study.
It is a great pleasure for me to acknowledge all those who have contributed towards the
conception, origin and nurturing of this project. I have done the project On HR Best
Practices in Bank of Baroda under the LDRP institute of Technology & Research,
Gandhinagar. I would like to extend my gratitude towards Kadi Sarva Vishwavidyalaya
for providing me an opportunity to study with MBA Dept. of LDRP-ITR. I am extremely
thankful to our Head of Department Prof. (Dr.) Surya Krishna Mantrala who guided me
very well in my whole training program. I am also thankful to my faculty Prof. Hemali
Broker (Internship Coordinator) who gave me this opportunity to have practical
experience of corporate world and the other faculties of LDRP as well. I am thankful to
Prof. Hemali Broker, Dr. Vinit Mistri, Dr. Mallika Babu, Dr. Sejal Acharya & Prof.
Harshita Vijaywargi; faculties of LDRP-ITR MBA Dept. for their constant support in the
completion of the report.
I am extremely thankful and express my heartiest thanks to the faculty of KALUPUR
helped me in each and everywhere to make my report meaningful. I take this opportunity
to express my heartiest thanks to MR. Anil shrimali ( HR Manger) regional Office-
Bank of Baroda, who had given us the permission to take my training in the regional
Office and provided all the facilities that i required during my training. I am very much
thankful to my mentor Miss. Charmi Bhai (Officer) for her guidance. I am also very
thankful to office-administration staff who had been with me in all our difficulties during
summer training. Last but not least I am thankful to all those people who came across in
my training session and increased my morale. I am extremely grateful to everyone who
knowingly or unknowingly helped me in my project. My deepest regard goes to all of
them and their help is deeply appreciated.

I do hereby declare that the Summer Internship Project Report titled “Digital in kalupur
commercial cooperative Bank ” submitted by me towards the partial fulfilment of the
requirement of Master of Business Administration, exclusively prepared and conceptualized by

Digital banking to allow a bank’s customers. ATM and physical branches. Internet
banking is one component of a wide ranging digital banking offering. Digital banking has
exploded onto the web and the internet is a powerful and cost effective medium for
business to interact with and services their customers. The number of online banking
services to customer continues to grow. Bank can generate revenue through increased
account, access utilize technology fees and benefit from promotional opportunity to cross
sell products such as high volume financial services. It can be said that finally banks are
finding that a comprehensive online banking strategy is essential for success in the
increasingly competitive financial services market. Competition and changes in
technology and lifestyles changed the face of banking and bank in the present
environment are seeking alternative way to provide and differentiate their services. For
success in the increasingly competitive financial services market. security policy should
be taken very seriously by the including security measures like digitalization
authentication, and verification of on-line identity, increase consumer confidence. Such
advance in internet security can surely put banks in perspective again as financial
intermediaries and facilitators of complete commercial transaction via electronic
networks. The important thing is to research the various views about the banking sector and I
get knowledge about the actual work of the banking and get results of the customers regarding
to my project and it was great experience for me.
Table of Content

Preface I

Acknowledgment II

Executive Summary III

1 Introduction of Project
Literature review

2 Research Methodology

3 3.1 Objectives
3.2 Scope
3.3 Sampling Technique
3.4 Sources of Data
3.5 Sampling Plan

4 Industrial Overview
4.1 SWOT Analysis
5 Organization Overview
6 Conceptual Framework
7 Data Interpretation
8 Findings & Suggestions
9 Utility
10 Learning
11 Limitations
12 Conclusion
13 Bibliography
14 Annexure
This is an internship report. Master of Business Administration (MBA) Course requires 45
days attachment with an organization followed by a report assigned by the supervisor in
the organization and endorsed by the faculty advisor. I took the opportunity do my
internship in the Kalupur Commercial Co-operative Bank, I have conducted my study
on digitalization improved in kalupur bank because employees are now a days considered
as a assets of the organization.
Since my summer training was in the months of May-July, it gave me the opportunity.
I also use some research tools for make my research more valuable, I used questionnaire
survey method of the kalupur commercial co-operative bank.
 Rameshgaava (2012) in his study on Topic ‘Indian Banking Sector’ finds tha t-

The sector of commercial banks consist of 33 foreign banks, 40 private sector

banks, and 27 public sector banks where majority ownership is included by the
government. During the reform period, the financial system permitted the banks to
select their lending rates and deposits, and also authorizes higher disclosure to
make sure of large transparency in the balance sheets. As a result of reforms in the
banking sector the share of entire assets of public sector banks was decreased to 75
percent from 90 percent. In the private sector, the new banks entry diminished the
concentration of assets which further might have made the competition stronger
which leads to more profitability, productivity, and enhancing efficiency.
 Dr. Richard Nyangosi (2014) in his study on Topic ‘ Digitizing Banking Services’
finds that-

Internet and mobile technologies of recent years have gained momentum and are
impacting the working of every process including financial services. Financial
Service providers including banks are turning their necks toward the wave of these
Technologies. Their findings includes- Adoption of cell phone banking. Out of the
respondents surveyed, 26 percent had adopted cell phone banking in India out of
those who adopted, mostly were young aged. This service too like any other e-
banking services is gaining momentum as customers are finding it easy to bank
24x7. Using different common E-banking services provided through a cell phone,
which included: balance inquiry, requesting cheque book, know last few
transactions, requesting bank statement, stop payment of cheque, and bill payment.
Adoption of Cyber Banking, the findings indicate that, 67.2 percent of the total
sample adopted Internet Banking and 36.8 did not adopt.
Perceived usefulness of SMS banking, financial products through cell phones have
proved to be useful to both customers and providers in recent times. Customers
find it easy, convenient, and efficient to transact conventional banking services
which are nonmonetary in nature such as balance enquiry, transfer of funds, change
password etc through a mobile phone.

 Malhotra, Pooja & Singh, (2010)

This study is an attempt to present the present status of Internet banking in

India and the extent of Internet banking services offered by Internet banks. In
addition, it seeks to examine the factors affecting the extent of Internet banking
services. The data for this study are based on a survey of bank websites
explored during July 2008. The sample consists of 82 banks operating in India
at 31 March 2007. Multiple regression technique is employed to explore the
determinants of the extent of Internet banking services. The results show that
the private and foreign Internet banks have performed well in offering a wider
range and more advanced services of Internet banking in comparison with
public sector banks. Among the determinants affecting the extent of Internet
banking services, size of the bank, experience of the bank in offering Internet
banking, financing pattern and ownership of the bank are found to be
significant. The primary limitation of the study is the scope and size of its
sample as well as other variables (e.g. market, environmental, regulatory etc.),
which may have an effect on the decision of the banks to offer a wide range of
Internet banking services. The purpose of the study is to help fill significant
gaps in knowledge about the Internet banking landscape in India. The findings
are expected to be of great use to the government, regulators, commercial
banks, and other financial institutions, e.g. co-operative banks planning to offer
Internet banking, bank customers and researchers. The bankers as well as
society at large will come to know where the banks lag in terms of adoption of
Internet banking and in providing different products and services. An
understanding of the factors affecting the extent of Internet banking services is
essential both for economists studying the determinants of growth and for the
creators and producers of such technologies. Moreover, this paper contributes
to the empirical literature on diffusion of financial innovations, particularly
Internet banking, in a developing country, i.e.


 Uppal, R.K. & Chawla, R. (2009)

this study highlights customer perceptions regarding e-banking services. A survey

of 1,200 respondents was conducted in October 2008 in Ludhiana district, Punjab.
The respondents were equally divided among three bank groups namely, public
sector, private sector and foreign banks. The present study investigates the
perceptions of the bank customers regarding necessity of e-banking services,
quality of e-banking services, bank frauds, future of e-banking, preference of bank
customers regarding banks, comparative study of banking services in various bank
groups, preferences regarding use of e-channels and problems faced by e-bank
customers. The major finding of this study is that customers of all bank groups are
interested in ebanking services, but at the same time are facing problems like,
inadequate knowledge, poor network, lack of infrastructure, unsuitable location,
misuse of ATM cards and difficulty to open an account. Keeping in mind these
problems faced by bank customers, this paper frames some strategies like customer
education, seminars/meetings, proper network and infrastructure facilities, online
shopping facilities, proper working and installation of ATM machines, etc., to
enhance e-banking services. Majority of professionals and business class customers
as well as highly educated and less educated customers also feel that e-banking has
improved the quality of customer services in banks.

 Azouzi, D. (2009)

This paper aims to check if the current and prompt technological revolution
altering the whole world has crucial impacts on the Tunisian banking sector.
Particularly, this study seeks some clues on which we can rely in order to
understand the customers' behavior regarding the adoption of electronic banking.
To achieve this purpose, an empirical research is carried out in Tunisia and it
reveals that panoply of factors is affecting the Customer’s attitude toward e-
banking. For instance; age, gender and educational qualifications seem to be
important and they split up the group into electronic banking adopters and
traditional banking defenders and so, they have significant influence on the
customers' adoption of e-banking. Furthermore, this study shows that despite the
presidential incentives and in spite of being fully aware of the ebanking's benefits,
numerous respondents are still using the conventional banking. It is worthy to
mention that the fear of loss because of transactions errors or hackers plays a
Significant role in alienating Tunisian customers from online banking.

 A Conceptual study on digitalization of banking-issues and challenges

The modern world in which we are living is dominated by the concept called
“Digitalization”. The government of India recently announced Digital India Programme
with a vision to transform India into a digitally empowered society and knowledge
economy. The concept of digitalization has been playing major role in all sectors of the
economy and banking sector is not exception to it. Digitalization has become decisive for
Indian Banking sector, which plays major role in furthering financial inclusion and which
is mainly concerned with providing better services to customers along with an opportunity
to gain more in near future. Indian banking sector is achieving tremendous growth in
recent years, encouraging higher amount of capital formation, which is because of
digitalization of banking. Even though Indian banking sector is moving towards
digitalization, there are various issues and challenges to be addressed, especially in rural
banking. This conceptual research paper is an attempt made to analyze the issues and
challenges in the area of Digitalization of Rural Banking and to gain a new perspective in
that area.
 Digital Transformation: A Literature Review and Guidelines for
Future Research

The aim of this paper is to provide insights regarding the state of the art of Digital
Transformation, and to propose avenues for future research. Using a systematic literature
review of 206 peer-reviewed articles, this paper provides an overview of the literature.
Among other things, the findings indicate that managers should adapt their business
strategy to a new digital reality. This mainly results in the adaptation of processes and
operations management. Scholars, for the other side, are also facing challenges, as prior
research may not have identified all the opportunities and challenges of Digital
Transformation. Furthermore, while the Digital Transformation has expanded to all
sectors of activity there are some areas with more prospects of being developed in the
future than others.


The adoption rate of digital modes of transactions was very low until in November 2016,
the Government of India announces the biggest demonetization in the history of India,
banning the use of Rs. 500 and Rs. 1000 currency notes from the midnight of 8th
November 2016. Within a few days digital modes of transactions became inevitable due
to extreme scarcity of new notes and reduced ATM withdrawal level. Digital transactions
increased by lips and bounds which was one of the promulgated objectives of
demonetization. But did demonetization cast a long term positive impact in changing the
Indian economy from cash based to cash less? Did digital modes of transactions manage
to attract more and more customers even when re-monetization process was over? Our
study is a rigorous attempt to find out the answers to the above questions. We have used
secondary data relating to number of transactions under various digital payment modes
offered by banks to objectively verify whether there is any significant growth in digital
payment instruments post demonetization using appropriate statistical tools. Our analysis
confirms the claim of the Government that demonetization, indeed, has helped India to
take a giant step towards a digital or cashless economy.

 W.S. Saraf Committee [1994]

In 1994, the Governor, Reserve bank of India had appointed a committee on technology
issues under the chairmanship of W. S. Saraf. The committee looked into technological
issues related to the payment system and to make recommendations for widening the use
of modern technology in the banking industry. The Saraf committee recommended to set
up institutions for electronic funds transfer system in India. The committee also reviewed
the telecommunication system like use of BANKNET and optimum utilization of SWIFT
by the banks in India.
 Reserve bank of India and impact of liberalisation on banking system

With liberalisation in the telecom industry and its improved reliability at a reduced cost,

many banks and financial sectors at that time were going forward with large-scale

networking of their branches and implementing the centralised core banking solutions. As

a result, banks were able to provide their products and services to their customers

anywhere, any time. With these developments, bank customers could avail these services

across different locations with improved transaction realisation and reduced cost. With

increasing proliferation of ATMs, telebanking, and availability of internet banking

facilities , the customer contact points had increased enormously, thereby resulting in

increased services to customers.

 Applications of IT in the banking sector

Rajshekhara K. S. (2004) [12] described the adoption of IT in banking has undergone

several changes with the passage of time. Today IT has become an inseparable segment of
banking organization. The application of information technology in the banking sector
resulted in the development of different concepts of banking such as – E-banking, Internet
Banking, Online Banking, Telephone Banking, Automated teller machine, universal
banking and investment banking etc. Information technology has a lot of influence on
banking transactions. It ensures quick service with low transaction cost to the customers.
The real success of IT in the banking sector depends upon the customer’s satisfaction.
Therefore banks should organize and conduct customer awareness program in their
service area. Security is an important issue in the context of E-banking. The development
of technology for the identification of customers with different means of communication
devices is a must for successful business and also to reduce frauds in banking. In this
paper the author has studied customer related aspects only. This paper do not present any
study related to the bank employees and their problems regarding bank computerization.

 IT framework for Indian banking sector

IT planning is an ongoing effort intended to match the bank’s technology capabilities
with its changing strategic objectives. It is necessary for a bank to identify technology
gaps and develop a plan that supports the bank’s long/medium term-strategic goals in
order to bridge the gaps. It is imperative for banks to have a clearly defined
technology reasons.
- Increasing competition, new products and changing distribution channels.
- Banks currently spend a huge amount of their budget annually on technology. Such
investments will only continue to escalate.
- Effective technology management requires an underlying technology plan. Without
it, scarce resources are likely to be wasted and opportunities missed.

 Internet Banking in India

Jadhav Anil (2004) described various channels of e-banking services such as ATM,
Telephone banking (Tele-banking), Mobile banking, Internet banking and its
features. The focus is also given on e-banking opportunities, challenges and security
aspects while performing the banking transactions on the internet. Comparison of
public, private, foreign and co-operative banks and barriers to the growth of e-banking
in India are also discussed.

 Mishra A. K.
described that the Internet banking is a cost-effective delivery channel for financial
institutions. The author also describes the advantages of internet banking, current
status of internet banking in India, and the mechanism to protect the customer’s data.
The advantages of internet banking are:
• To improve customer access
• To facilitate more services
• To increase customer loyalty
• To attract new customers
• To provide services offered by competitors
• To reduce customer attrition

 Security aspects of banking transactions

Hebbar Raveendranath (2004) [29] described that the advancements in computing and
telecom have revolutionised the financial industry. Banks are developing alternative
channels of delivery like ATM, telebanking, remote access, internet banking etc.,
Some questions that need to be answered are , how can one trust these channels, our
personal data and transactions which are driven by technology. Are they reliable and
accurate? Is there a way out to independently validate the integrity of information? If
we analyse, why the lack of trust exists, we realize that the primary issues center on
the following aspects of information security:
• Authentication and identity of user: The act of verifying the identity of a user. How
to recognize the person dealing on the net? Can one be sure of his or her identity?
• Confidentiality: How can one be sure that the information transmitted has not been
intercepted or viewed by any other party in transit?
• Integrity: How can one ensure that the information sent, received or stored has not
been tampered with the modified at any time?
• Non-Repudiation: What is the guarantee that a particular transaction or action
took place? Would this hold the tests of court of law?
 Technological developments in cooperative banks
The co-operative bank is an important element of the Indian financial system.
Cooperative movement is quite well established in India. The co-operative banks have
a history of almost 100 years (www.rbi.com). The first legislation on cooperation was
passed in 1904. In 1914 the three tier structure for cooperative banks was designed
like, primary agricultural credit societies (PACs) works at the grass root level, central
cooperative banks at the district level and state cooperative banks at the apex level.
The first urban cooperative bank in India was formed nearly 100 years back.
Cooperative institutions are engaged in all kinds of activities namely production,
processing, marketing, distribution, servicing and banking in India. The sources of
funds for the cooperative banks are – Central and State government, the Reserve Bank
of India and NABARD, other cooperative institutions, ownership funds and
depositors and debenture holders.
The cooperative movement in India is a leading movement in the world. Among
various sectors of cooperative movement, banking has recorded the fastest growth,
since submission of All India Rural Credit Survey Committee (AIRCSC) report 1954.
Edwinraj (2005) [31] described the role of information technology in co-operative

Research methodology is the process used to collect information and data for the
purpose of making business decisions. The methodology may include publication
research, interviews, surveys and other research techniques.

Research Design

A research design serves as a bridge between what has been established (the
research objectives) and how to accomplish these objectives. In fact, the research
design is the conceptual structure within which research is conducted; it constitutes
the blueprint for the collection, measurement and analysis of data. More explicitly,
the design decisions happen to be in respect of:

i) What is the study about?

ii) Why is the study being made?
iii) Where will the study be carried out?
iv) What type of data is required?
v) Where can be the required data found?
vi) What period of time will the study include?
vii) vii)What will be the sample design?
viii) What technique of data collection will be used?
ix) How will the data be analyzed?
x) In what style will the report be prepared?
The function of research design is to provide for the collection of relevant evidence
with minimal expenditure of effort, time and money.


 To find out the reasons for preferring internet banking services.

 To understand the facilities mostly availed by the respondents and the opinion
about the services.
 Develop innovative products and services that attract our targeted customers
and address inefficiencies in the Indian financial sector.
 To measure the satisfaction level of branch banking & Digital banking.
 Continue to develop product and services that reduce our cost of funds.
 Focus on high earning growth with low volatility.

In this competitive world retaining the customers has become important part and
parcel of the business activity, since in this arena the people who adapt to changes
in services any improvement
This study will help to understand customer need, preference and what they
require from the kalupur commercial co-operative bank to improve its services.
3.3Sampling Technique

Research Type:

In this report I have used Descriptive research technique.

Descriptive research includes surveys and fact-finding enquiries of different kinds.
The major purpose of descriptive research is description of the state of affairs as it
exists at present. The main characteristic of this method is that the researcher has
no control over the variables.
Sampling Design:

For my survey I have used Convenience sampling technique.

Convenience sampling is a non-probability sampling technique where subjects are

selected because of their convenient accessibility and proximity to the researcher.
SAMPLE SIZE - Sample of 110 people was taken in order to conduct the research.

3.4 Sources of Data

Sources of Data Collection:

PRIMARY DATA is the data which has been collected through personal contact.

• Through Questionnaire – Questionnaire is a written set of

questions, the answers to which are recorded by the respondents.
• Through Personal Interaction – In personal interaction an
interviewer ask questions in a face to face contact to the other
SECONDARY DATA is the data which are available in the form of fact and figures.
The sources of secondary data are:

• Websites: www.kalupurbank.com

• Articles

• Data Collection Tools:

• For my survey I have used Pie chart, Graphs.
• Methods of Data Collection:
• For my survey I have collected data through Questionnaire.


1. Sampling Unit: Customer of kalupur commercial co-operative bank [NIRMA.U.]

2. Sample size determination: calculate using the formula

Here taking, Confidence Interval: 95% ( as expected to be 98% with confidence)

p = 50 % ( as probability of success is unknown it is expected to be 50 % )
= 1 – 50 %
= 50 %
= 0.50
Error = 10 % (the error of estimation is expected to be 10 % )

Z@ 95 % confidence interval = 2.0976

N2 = Z2.p. q CI=98.17%

= (1.96)2 * 0.5 * 0.5 = 98.17% = 110 samples

3. Data collection procedure: Questionnaire

3. Sample Size: For example, 110

Industrial Overview

Bank is an institution that deals in money and its substitutes and provides crucial financial
services. The principal type of baking in the modern industrial world is commercial banking &
central banking.

Banking Means "Accepting Deposits for the purpose of lending or Investment of deposits of
money from the public, repayable on demand or otherwise and withdraw by cheque, draft or

 Accept deposits of money from public.
 Pays interest on money deposited with it.

 Lends or invests money.

 Repays the amount on demand,

 Allow the money deposited to be withdrawn by cheque or draft .


The origin of the word bank is shrouded in mystery. According to one view point the
Italian business house carrying on crude from of banking were called banchi bancheri"
According to another viewpoint banking is derived from German word "Branck" which
mean heap or mound. In England, the issue of paper money by the government was
referred to as a raising a bank.


Its origin in the simplest form can be traced to the origin of authentic history. After
recognizing the benefit of money as a medium of exchange, the importance of banking
was developed as it provides the safer place to store the money. This safe place ultimately
evolved in to financial institutions that accepts deposits and make loans i.e., modern
commercial banks.

Key investments and developments in India‟s banking industry include:

• The bank recapitalization plan by Government of India is expected to push credit

growth in the country to 15 per cent and as a result help the GDP grow by 7 per
cent in FY19 ^.
• Public sector banks are lining up to raise funds via qualified institutional
placements (QIP), backed by better investor sentiment after the Government of
India's bank recapitalization p lan and an upgrade in India's sovereign rating by
Moody's Investor Service.
• The total value of mergers and acquisition during FY17 in NBFC diversified
financial services and banking was US$ 2,564 billion, US$ 103 million and US$
79 million respectively.
• The biggest merger deal of FY17 was in the microfinance segment of IndusInd
Bank Limited and Bharat Financial Inclusion Limited of US$ 2.4 billion @.
• In May 2018, total equity funding's of microfinance sector grew at the rate of
39.88 to Rs
96.31 billion (Rs 4.49 billion) in 2017-18 from Rs 68.85 billion (US$ 1.03
Government Initiatives

• A new portal named 'Udyami Mitra' has been launched by the Small Industries
Development Bank of India (SIDBI) with the aim of improving credit availability
to Micro, Small and Medium Enterprises' (MSMEs) in the country.
• Mr. Arun Jaitley, Minister of Finance, Government of India, introduced 'The
Banking Regulation (Amendment) Bill,2017', which will replace the Banking
Regulation (Amendment) Ordinance, 2017, to allow the Reserve Bank of India
(RBI) to guide banks for resolving the problems of stressed assets.
• Under the Union Budget 2018-19, the government has allocated Rs 3 trillion
(US$ 46.34 billion) towards the Mudra Scheme and Rs 3,794 crore (US$ 586.04
million) towards credit support, capital and interest subsidy to MSMEs.
• (PMVVY) to provide elderly people Rs 10,000 (US$ 155.16) pension per month.
This scheme has an investment limit of Rs 15 lakh (US$ 23,273.86).
• In May 2018, the Government of India provided Rs 6 trillion (US$ 93.1 billion)
loans to 120 million beneficiaries under Mudra scheme.
• As on January 4, 2018, the Lok Sabha has approved recapitalization bonds worth
Rs 80,000 crore (US$ 12.62 billion) for public sector banks, which will be
accompanied by a series of reforms.
• In March 2018, the Government of India launched Pradhan Mantri Vaya Vandana

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

• A two-year plan to strengthen the public sector banks through reforms and capital
infusion of Rs 2.11 lakh crore (US$ 32.5 billion), has been unveiled by the
Government of India that will enable these banks to play a much larger role in the
financial system and give a boost to the MSME sector. In this regard, the Lok
Sabha has approved recapitalization bonds worth Rs 80,000 crore (US$ 12.62
billion) for public sector banks, which will be accompanied by a series of reforms,
according to MrArunJaitley, Minister of Finance, Government of India.
• The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017 Bill has
been passed by Rajya Sabha and is expected to strengthen the banking sector.
Road Ahead

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 contactless 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.
Mr. Bill Gates, Co-founder of Microsoft Corp, has stated that India will move
quite rapidly to a digital payments economy in as little as seven years, based on
the introduction of digital payment banks combined with other things like direct
benefit transfers, universal payments interface and Aadhaar.

As of Q3 FY17-18, total credit extended by commercial banks surged to US$

1,288.1 billion and deposits grew to US$ 1,715 billion. Assets of public sector
banks stood at US$ 1,518 billion in FY17.

Indian banks are increasingly focusing on adopting integrated approach to risk

management. Banks have already embraced the international banking supervision
accord of Basel II, and majority of the banks already meet capital requirements of
Basel III, which has a deadline of March 31, 2019.
A new portal named 'Udyami Mitra' has been launched by the Small Industries
Bank of India (SIDBI) with the aim of improving credit availability to Micro,
Small and Medium Enterprises' (MSMEs).The Insolvency and Bankruptcy Code
Ordinance, 2017 Bill has been passed and is expected to strengthen the banking

Deposits under Pradhan Mantri Jan Dhan Yojana (PMJDY) are growing Rs.
81,203.59 crore (US$ 12.59 billion) were deposited and 316.7 million accounts
were opened in India. ^ In May 2018, the Government of India provided Rs 6
trillion (US$ 93.1 billion) loans to 120 million beneficiaries under Mudra scheme.
In May 2018, the total number of subscribers was 11 million, under Atal Pension

Rising incomes are expected to enhance the need for banking services in rural
areas and therefore drive the growth of the sector. The RBI has relaxed its branch
licensing policy, thereby allowing banks (which meet certain financial
parameters) to set-up new branches in tier-2 to tier-6 centers, without prior
approval from RBI.

The digital payments revolution will trigger massive changes in the way credit is
disbursed in India. Debit cards have radically replaced credit cards as the
preferred payment mode in India, after demonetization. Debit cards garnered a
share of 87.62 per cent of the total card spending.
Banking Industry Trends in 2018 and 2019
“2018 will see developments across banking industry, including mature applications to
fintech solutions by keeping the latest banking industry trends in the mind. Greater use of
digital payments, the opening up of banking thanks to API built architectures, the first
significant progress with blockchain technology, and the harnessing of AI and RPA
solutions. These changes will all occur as global tech giants change the financial services
battleground.” – Roberto Ferrari, Chief Digital and Innovation Officer at Mediobanca

The introduction of digital technology including the latest banking industry trends has
become much technical today. It has moved from normal paper transactions to screen tap
points. It is right now running in the phase of commoditization. Today’s banking scenario
works on providing differentiated and delightful customer experience than merely just
providing financial services. To be a market player and grab a bigger piece of the cake,
banking industry toil to understand the unsaid and unstated needs of the customer without
even taking direct feedback from them.

There are several factors that account for a revolution in the banking industry. It begins
with the combination of dynamic reasons which includes rising interest rates, varying
regulatory environment, tax deductions, government regulatory policies, inflation,
increasing interest rates, higher customer’s expectations etc.

These versatile reasons have already accelerated the banking industry trends and enable
banks to gather speed for a visualized and transformative digitization of platforms and
processes. Many segments of banks like midsize and larger banks have started to
implement massive investments in their approach to transform banking into digital service

Let’s talk about the current key trends that are revolutionizing the banking industry with
the magic of digitization.

List of Top 10 Banking Companies in India

The Indian banking space is an exciting and dynamic one. Here is a list of the top 10 banking
companies in the country,going by market capitalization

Going by market capitalization, HDFC Bank is the largest bank in India. Its market cap is pegged at
about INR 261,226.94 crore.As of end 2014, the bank boasted of a strong network of 3,659 branches in
2,287 cities.To facilitate NRI banking, the bank also has overseas branches in Bahrain, Hong Kong,
Abu Dhabi, Kenya and Dubai.HDFC Bank has over 11,633 ATMs and a customer base of over 28
million. It is also ranked 45th among the top 50 banks of the world. Employing over 69,065
employees, HDFC Bank is one of the strongest contenders in the private banking space.

State Bank of India

With a market capitalization of about INR 216,128.73 crore, SBI is the second most-valued bank in
India It and is perhaps the most trusted one, being a state-owned bank. The bank has a strong network
of over 13,000 branches spread across the nation and has about 190 foreign offices in 36 countries.
Along with HDFC Bank, SBI also features among the top 50 global banks (going by market
capitalization). It is also one of the largest employers in the country and provides employment to over
220,000 personnel. SBI manages assets worth about USD 390 billion in all. (to be converted into INR--
-- otherwise inconsistent)

ICICI Bank Limited

ICICI Bank is the third largest entity in the Indian banking space, with a market capitalization of INR
184,547.26 crore.ICICI Bank has a customer base of over 2.5 million and boasts of an extensive
network of 4050 branches across the country. With 12,475 ATMs and assets worth USD 99 billion, the
bank is currently celebrating 60 years of existence. ICICI was formed as a World Bank initiative in
1955.The bank is headquartered in Vadodara, Gujarat and has an international presence in 19
countries. The bank’s employee strength was estimated at over 72,000 last year when it overtook
HDFC Bank in terms of people employed.

Axis Bank
With a market capitalization of about INR 134,685.68 crore, Axis Bank takes its place at the fourth
position among Indian banks.Founded in 1994 as UTI Bank, Axis Bank now has a network of 2402
domestic branches and 12922 ATMs spread across the nation.The bank also has seven international
offices including the ones in Hong Kong, Singapore, Colombo, Dubai, Abu Dhabi, and Shanghai.Axis
Bank employs over 37,901 employees and is reported to have net assets worth about USD 53
billion.Apart from retail banking, Axis Bank also operates in NRI Services, Investment banking and
treasury operations and corporate banking.

Kotak Mahindra Bank

Kotak Mahindra Bank, headed by Mr. Uday S Kotak, and with a market capitalisation of INR
109,631.60 crore comes next. Kotak Mahindra Bank is currently poised for a spectacular growth due to
an all-stockmerger with ING Vysya Bank. Kotak Mahindra shall now become the fourth largest private
bank in the country in terms of the business done.The combined banking company will now have a
network of 1,214 branches across the country. The bank is likely to have an employee strength of about
30,000 after the merger. The combined market capitalisation is estimated to be about INR 1.25 lakh

IndusInd Bank
Founded in 1994, Hinduja Group owned IndusInd Bank has a market capitalisation of about INR
50,100.41 crore. The bank employs over 15,500 employees and has a network of 638 branches and
1238 ATMs across the country. With international offices in London and Dubai, IndusInd Bank is
known for its strong remittances business. The bank has an exceptionally strong business base in
Mumbai, Delhi, and Chennai.

Bank of Baroda
Bank of Baroda is another large PSU banking company in India with a market capitalization of about
INR 38601.08 crore.The bank is estimated to have over 5193 branches and 38,737 employees. With a
significant presence in about 25 countries, the Bank of Baroda balances out NRI services with rural
and agricultural finance. The bank is one of the major banking operators in India’s rural sectors.
Yes Bank
Yes Bank was incorporated in the year 2004 by Mr. Rana Kapoor and Mr. Ashok Kapoor, and
currently has a market capitalisation of about INR 35,169.20 crore.With a strong network of about over
630 branches in 375 cities, and with over 1150 ATMs spread across the country, Yes Bank is among
the fastest growing banks of India. The bank employs about 12000 employees and has high ambitions
for the years to come.

Punjab National Bank

Founded in 1894, Punjab National bank is one of the oldest banks in India. Unlike most Indian banks
that have their headquarters in Mumbai or Gujarat, the Punjab National Bank has its headquarters in
Delhi and has a market capitalization of about INR 30312.73 crore. Like other PSU banks, the bank
has a major focus on agricultural and rural financing but also has a widespread international
presence.The bank has 8.9 crore customers, 6081 branches in India and abroad and a network of 6940
ATMs spread across the country.

Canara Bank
Canara Bank is another PSU that has made its mark in the Indian banking sector with a market
capitalization of about INR 18630.10 crore. Nationalised in 1976, the bank has a network of about
3600 branches spread across the country. With 7599 ATMs, the bank is among the first PSUs in the
country to emphasise on e-banking and online services. Apart from commercial banking, Canara Bank
has also become a strong provider of corporate banking services in India.

*Market Capitalisation data – BSE as of 10, April 2015

The banking in India started with the establishment of the General Bank of India in 1786. Later the
Bank of Hindustan was also established. However, both the banks are not in functional state currently.
It's the State Bank of India, which is currently the oldest bank in India in existence, established in

Since the beginning, due to huge market potential, a number of banking companies have come up in
India, which include both, public sector as well as private sector banks. However, the list of top 10
banking companies in India has mostly been dominated by the State Bank of India (SBI).

Since the initial days, the State Bank of India has dominated the Indian banking industry accounting
for nearly 20% of the Indian banking system's deposit base. It also has got almost 20% of the credit

Last Updated on: January 17th, 2019

Keep your bank account adequately funded to avoid penalties
In the last three years, savings account holders have paid nearly Rs 10,000 crore to banks

as penalties for not maintaining the minimum balance, according to the numbers presented

by the government in the Lok Sabha. This is a huge amount collected by banks from

account holders as penalties. Of the total amount, 18 public sector banks collected Rs

6,155 crore. Four major private sector banks have collected Rs 3,567 crore as a penalty

for non-maintenance of minimum balance.

The New Indian Express carried a report dated July 23, 2019, which mentions one

Mahesh Kumar, 38, residing in Bengaluru, being fined by his bank in 2017 for not

maintaining the minimum balance in his savings account. In September 2016, his son

Shreyas was asked to open an account by his school at a particular private bank branch for

receiving his scholarship. Kumar opened a joint savings account with his son. While

opening an account, Kumar deposited Rs 1000 as it was the minimum balance that was
required to be maintained in the bank account. However in April and July 2017, without

intimating Mahesh, the bank had deducted Rs 114 and Rs 371 respectively as penalty,

stating that the minimum balance was not maintained in the account. He got to know of

this only in July 2017, while updating bank passbook by visiting the branch. While

inquiring about the charges, the bank branch manager informed that the minimum balance

in savings account was hiked to Rs 3000 from Rs 1000 earlier and all customers were

informed by SMS/email as per RBI guidelines. However, Kumar did not receive any SMS

or email communication from the bank about it. He complained to the bank branch with
proof and the bank reversed the deducted penalty amount by the end of July 2017. The

story doesn’t end there.

In July 2017, Kumar deposited an additional Rs 2000 in the savings account to meet the

bank’s minimum balance norms. But, in the months of September and October of 2017,

the bank again charged Rs 79 and Rs 2, respectively, stating that they were penalties for

non-maintenance of minimum balance in the account. Later, Mahesh decided to raise a

complaint against the bank on minimum balance penalty debited from his account with

the consumer forum. Recently, Mahesh won the case against the bank, as he had all the

evidences in his favour. The Rs 81 deducted from the account was reversed by the bank.

The forum imposed a penalty of Rs 6000 on the bank. It was to be paid to Mahesh and

included Rs 1000 as compensation and Rs 5000 as litigation cost incurred.



I. Primary functions
 Acceptance of Deposits

 Making loans & advances

 Loans

 Overdraft

 Cash credit

 Discounting of bills of exchange

II. Secondary Function

 Agency functions

 Collection of cheque & Bills etc.

 Collection of interest and dividend.

 Making payment on behalf of customer

 Purchase & sale of securities

 Facility of transfer of funds

 To act as trustee & executor.

III. Utility Functions

 Safe custody of customers valuable articles &securities.
 Underwriting facility
 Issuing of traveller's cheque letter of credit.
 Facility of foreign exchanges
 Providing trade information
 Provide information regarding credit worthiness of their customer.


The Indian banking system can be classified into nationalized banks, private banks and
specialized banking institutions. The Reserve Bank of India is the foremost monitoring g
body in the Indian Financial sector. It is a centralized body that monitors discrepancies
and shortcomings in the system.

Banking segment in India functions under the umbrella of Reserve Bank of India (RBI)-
the regulatory, central bank. This segment broadly consists of:

1. Commercial Banks
2. Co-operative Banks
The commercial banking structure in India consists of:

1. Schedule Commercial Banks

2. Unscheduled Banks
Schedule Commercial Banks constitute of those banks, which have included second
schedule of Reserve Bank of India (RBI) act 1934. RBI in turn includes only those banks
in this schedule that satisfy the criteria laid down vide section 42 (60 of the act) this sub
sector can broadly classified into:

1. Public Sector
2. Private Sector
3. Foreign Sector
Public sector banks have either government of India Reserve Bank of India (RBI) as the
majority shareholder. This segment comprises of:

1. State Bank of India (SBI) and its subsidiaries

2. Other Nationalized Banks
Industry estimates indicate that out of 274 commercial banks operating in the country, 223
banks are in the public sector and 51 are in the private sector. These private sector banks
include 24 foreign banks that have begun their operations here.

On the basis of ownership banks are of the following types:


Public sector banks are those banks which are owned by the Government. The
Govt. runs these Banks. In India 14 banks were nationalized in 1969 & in 1980
another 6 banks were also nationalized. Therefore in 1980 the number of
nationalized bank 20. But at present there are 9 banks are nationalized. All
these banks are belonging to public sector category. Welfare is their principle


These banks are owned and run by the private sector. Various banks in

the country such as ICICI Bank, KALUPUR COMMERCIAL

COOPERATIVE Bank etc. An individual has control over there banks

in preparation to the share of the banks held by him.


Co-operative banks are those financial institutions. They provide short

term &medium term loans their members. Co-operative banks are in

every state in India. Its branches at district level are known as the

central co-operative Bank. The co-operative in turn has its branches

both in the urban & rural areas. Every state co-operative bank is an

apex bank which provides credit facilities to the central co-operative

bank. It mobilized financial resources from richer section of urban

population by accepting deposit and creating the credit like commercial

bank and borrowing from the money market. It also gets funds from


Banks are classified into following two categories son the basis of reserve
bank Act. 1934.


These banks have paid up capital of at least Rs. 5 lacks. These are like a joint
stock company. It is a co-operative organization. These banks find their
mention in the second schedule of the reserve bank.


These banks are not mentioned in the second schedule of reserve bank paid up capital
ofThesebanks is less than Rs.5 lacks. The no. Such bank is gradually tolling in India.


On the basis of functions banks are classified as under


The commercial banks generally extend short-term loans to businessmen & traders. Since
their deposits are for a short-period only. They cannot lend money for a long period.
These banks reform various types or agency job for their customers. These banks are not
in a position to grant long-term loans to industries because their deposits are only for a
short period. The majority of joint stock banks in India are commercial banks which
finance trade & commerce only.

The principle function of these banks is to collect small saving across the country and put
them into productive use. These banks have shown marked development in Germany &
Japan. In India a department of post offices functions as a saving banks

 Foreign Exchange Bank

These are special types of banks which specialize in financing foreign trade. Their main
function is to make international payments through purchase & sale of exchange bills. As
it well known, the exporters of a country prefer to receive the payments for exports in
their own currency. Thus these banks convert home currency into foreign currency and
vice versa.

The industrial banks extends long term loans to industries. In fact, they also help
industrial firms to sell their debentures and shares. Sometimes, they even underwrite the
debentures & shares of big industrial concerns. These banks found their origin in India.
These banks made a significant contribution to the development of agricultural and
industries before independence.

The central bank occupies a pivotal position in the monetary and banking
structure of the country. The central bank is the undisputed leader of the
money market. As such it supervises controls and regulates the activities of
commercial banks affiliated with it. The central bank is also the higher
monetary institution in the country charged with the duty & responsibility of
carrying out the monetary policy formulated by the government. India's central
bank known as the reserve bank of India was set up in 1935.


The commercial and the industrial banks are not in a position to meet the credit
requirements of agriculture. Hence, there arises the need for setting up special
type of banks of finance agriculture. The credit requirement of the farmers are
two types. Firstly the farmers require short term loans to buy seeds, fertilizers,
ploughs and other inputs. Secondly, the farmers require long-term loans to
purchase land, to effect permanent improvements on the land to buy equipment
and to provide for irrigation works.


SWOT analysis of The Co-operative Bank analyses the brand/company with its strengths,
weaknesses, opportunities & threats. The Co-operative Bank is one of the leading brands
in the banking & financial services sector. The table below also lists the top The Co-
operative Bank competitors and elaborates The Co-operative Bank segmentation,
targeting, positioning & USP.
1.The bank has a ethical policy which prevents it from investing in companies involved in
arms trade, genetic engineering, fossil fuel extraction etc. The ethical policy is part of the
banks constitution.
2. Smile, the internet-only operation of the bank is among one of the top rated services in
UK by consumers
3. The bank offers a variety of retail banking services such as current accounts,
mortgages, loans, credit cards, investments etc.
4. The bank caters to a wide customer base including individuals, businessmen, corporate
customers etc.
5. The bank provides its customers with latest facilities like internet banking facility and
mobile banking facility.
Here are the weaknesses in the The Co-operative Bank SWOT Analysis:
1. The bank had to face a severe financial crisis which saw it being taken over by US
hedge funds.
2. Moody’s downgraded its credit rating by 6 notches to junk category
3. The bank has recently closed a lot of its branches and also terminated its off shore

 Opportunities
. The bank has come up with schemes such as the “Golden Hello” to win back customers
after its 2013 financial crisis.
2. The bank should introduce new products and schemes to bring in new customers. It
should also build relationships with existing customers to retain them.
3. The bank should come up with better governance and be more transparent, in order to
restore customer confidence in the processes of the bank
 Threats
The threats in the SWOT Analysis of The Co-operative Bank are as mentioned:
1. A more robust accounting system needs to be put in place. It was found that the bank
had a hole in its finances. Such scandals can erode customer confidence in the bank.
2. Default risk which is the risk that the bank may run into losses due to the counter party
defaulting on their liabilities.
3. A bad economic outlook can cause serious damage to the financial situation of the
4. The bank faces threat of running out of capital to run its day to day business due to the
severe financial crisis it is going through.

Organization Overview
Organization Overview

 Established on : 05 December 1970.

 Motto : - "Development by Services"
 Working Capital – Rs. 6490.52 Crore
 Member of CIBIL (Credit Information Bureau of India Ltd.)
 Well Established Demat department
o More than 27,500 Account holders
o ASBA facility
 Authorised Dealer Category -1 license.
 First Co-op Bank to get this license and the only Co-op Bank in Gujarat.
 Dealing in Six foreign currencies
 Modern dealing room equipped with Bloomberg screen.
 The only dealing room in Ahmadabad.
 We have 53 on site ATM centres and 5 off site centers.
 Facility of Air conditioned Locker Halls.
 All branches connected under 'CBS'.
 Facility of RTGS / NEFT / NECS / NFS.
 More than 50,986 Share holders.
 All types of attractive Loan and Deposit products are available.
 Facility of Government Tax Collection.
 Registered Office


 Head Office : ‘KALUPUR BANK BHAVAN’,

 Near Income Tax Circle, Ashram Road, Ahmedabad-380 014.

 Phone : 27582020 to 27582026

 Website : www.kalupurbank.com

 Toll Free No. : 1800 233 99999


* Late Shri Baldevbhai Dosabhai Patel:

Late Shri Baldevbai was born in 1917, in a village named as SANAND near Ahmedabad.
His father’s name was Dosabhai and mother’s name was Jadiben. Leadership
accompanied by vision was the prime quality of Shri Baldevbhai. He joined his father in a
business of grain at the age of only 20 and made Ahmedabad as his field of action. He was
proficient, competent, capable and clever in the business. His method of transacting the
business with service, made him popular and loved one. He was capable enough to
accomplish the job, correctly, and in time. These qualities made him a true leader. He
started cotton business in 1972 and earned the credit of reputed businessman.
In 1958, he established Grain Merchants building society and in 1962, he was elected
as President of Ahmedabad Grain Merchant Association. In 1973, he became
President of “Gujarat Anaj Vepari Sangh” and in 1982, he was elected as President
of “Gujarat Vepari Mahamandal”.
In 1969, when major banks of the country were nationalized, the businessmen were
avoided for convenient, easy and speedy credit. Therefore he thought of establishing a
bank for Grain Merchants. Late Shri Gopaldas Shivlal Patel and Shri Arvindbhai Saheba
joined him in his new venture.

The Reserve Bank of India granted the licence to start the bank and on 5th December
1970, The Kalupur Commercial Co-operative Bank Ltd. started functioning in a small
room at Kalupur area.
Late Shri Baldevbhai Patel’s vision of helping the society in the areas of health, education
etc could give birth to so many organizations and others were helped for development.
In 1983, Late Shri Baldevbhai, established “SANAND Education Trust” and also started
girls school at Sanand in memory of his mother Late Shrimati Jadiben. He was leader, and
instrumental inspiration in establishing Girls school, Women’s Collage, Pharmacy
College at Gandhinagar under the banner of “Kadi Sarvavidyalaya Kelvani Mandal”. The
Kelavani Mandal started the courses like MBA, MCA etc.
As a founder of the Bank Shri Baldevbhai had few goals.
1. To maintain the self respect of the businessmen.
2. To provide easy and timely credit to the businessmen with simple procedure.
3. To serve the society. Profit is not the barometer of success of the bank, but to help the
projects of education, health and to entertain charity projects as well, was the goal.
4. He wanted this bank as a symbol of common man’s bank and wanted to provide easy
credit to the needy persons even without securities. The person with a small business or
self employed should be able to get loans with convenience.
5. He had a vision of transparent management. reputed and recognized leaders in the
society to manage this bank without any gain or benefit.
In the year 1988, the Reserve Bank of India gave the status of scheduled Bank to 11 co-
operative Banks in the country out of 1400 co-operative banks. There were three co-
operative banks to be given this status in the state of Gujarat. The Kalupur Commercial
Co-operative Bank was the only bank in the city of Ahmedabad.
The bank got the status of Multy State Scheduled Bank from the year 1995. Now the Bank
is competing with nationalized banks, private sector banks in terms of technology and
services at very affordable charges to the customers.
The vision of Late Shri Baldevbhai has succeeded. Shri Baldevbhai died in the year 1997
in opening ceremony of Standard Co-operative Bank.
The bank had a very humble, but very inspiring beginning on 5th December 1970. The
Bank is a professionally managed “Financial Institution” a benchmark of transparency,
credibility and innovation.
The Bank is founded by Late Shri Baldevbhai Dosabhai Patel, Late Shri Gopaldas
Shivlal Patel and Shri Arvindbhai Jivanlal Saheba. The Bank has nurtured its
traditional values in business practices and in serving the small businessmen. These were
the people with deep and abiding ideas, faith, vision, optimism and entrepreneurial skills
with commendable sense of service and duty.
The dynamism infused by the Board of Directors, affectionate loyalties of clients and
devotion of staff members has created the sound foundation of The Kalupur Commercial
Co-operative Bank Ltd and has emerged as one of the leading Multi Sate Scheduled Co-
operative Bank in the country.
The Bank has adopted new technologies and advanced Banking tools to add value to its

Conceptual Framework
Conceptual Framework


Digitalization is the use of digital technologies to change a business model and

provide new revenue and value-producing opportunities; it is the process of moving to
a digital business. Integration of digital technologies into everyday life by the
digitization of everything that can be digitized.

“Digital” is the new buzz word in the banking sector, with banks all around the

globe hopping onto the digital bandwagon. Just like how the introduction of

mobile technology massively disrupted innovation in the banking sector,

digital is now doing the same. Banks of all sizes are making sizeable

investments in digital initiatives in order to maintain a competitive edge.

It definitely provides a glimpse into the future of banking. What digital

essentially does is that it uses technology to design experiences, both seen and
unseen. “Digital is all about making what can be seen unseen - making
services so smooth and seamless that it
becomes invisible to the customer”. “Despite all the automation and
improvements that digital banking has the potential to achieve, customers and
their needs still form the very core of the banking sector” It is the simplicity of
design, the removal of friction and the ability to improve the customer
MEANING AND DEFINITION“Digital Banking - a new concept in the area
of electronic banking, which aims to enrich standard online and mobile
banking services by integrating digital technologies, for example strategic
analytics tools, social media interactions, innovative payment solutions, mobile
technology and a focus on user experience.”

Digital banking is:

 Delivering a customized but consistent FI brand experience to customers

across all channels and points of interaction...
 Underpinned by analytics and automation and requiring a change in the
operating model, namely products and services, organization, culture, and
skills and IT...

Digital Banking is the application of technology to ensure seamless end-

to-end processing of banking transactions/operations; initiated by the
client, ensuring maximum utility; to the client in terms of availability,
usefulness and cost; to the bank in terms of reduced Operating costs, zero
errors and enhanced services.

Benefits to the bank:

1. Lower operating costs through;

i. the elimination of costly back-office processing operations,
ii. fewer (or ideally no) errors,
iii. smaller branch footprint (the typical branch can become a kiosk
affair, providing technology interfaces for the client to use plus the
ability to deal with banking specialists via a video link) - a minimum
number of actual staff will be required.
iv. concentrating banking/business specialists in a single centre, who are
then available to clients via a technology link (either on their mobile,
pc or via a kiosk branch).
1. Improved services and product offerings;
i. 24/7 bank services and availability through your mobile, pc or kiosk
ii. ‘smart banking5 applications that allow ALL transactions to be
completed from the device of your choice, from beginning to end (with
clear instructions and fail safe mechanisms),
iii. Access to a FULL range of services (savings, investments,
insurance, loans, mortgages, foreign currency, etc.),
iv. new useful client services such as warnings, notifications,
budgeting, expenditure analyses, savings programs, calculators (you
name it - the range is endless),
v. Lower charges (and therefore cheaper banking),
vi. Banking that meets the client’s needs (not the banks)
vii. Banking will mean digital banking from 2015
2. 69% of customers already use the Internet to buy financial products
3. Customers are willing to pay for digital banking
4. Banks need to improve their digital offer to attract new customers

Consumer expectations are changing with digital interaction

Present day consumers expect high quality digital communication. Rich

content including elegant designs, instant search results and interactive
features. Bank websites, especially online banking sections, are now required
to offer a pleasant experience while remaining highly functional.

It is still common for banks to send out account statements using the postal
service; however, for many people digital banking offers 24/7 account balance
control - there is a clear preference, especially for younger customers, to want
instantaneous access to their accounts. The posted account statement is snail
mail in comparison. The utility of snail mail, by contrast, is rapidly dying.

Consumers have access to more information than ever before, they now
communicate with more people and more frequently - traditional word-of-
mouth has a completely different meaning when one considers the immediacy
of Facebook, Twitter or even email. Access to information and the ease with
which consumers can share views with those they know - or even ‘the world5-
is dramatic. Good experiences can be easily shared online... as can negative
It is important that banks understand the importance of customer thinking in
deciding where to trust their money and in choosing their primary banking
relationship. This has long-term influence personally, but also as an element of
influence on their friends and those they communicate with online.

Banks should consider four main aspects of a robust digital offering:

1. Customer attitudes and behaviour are changing

2. Digital is preferred globally.

3. Digital is a part of Generation Y’s lifestyle and this is the key time for them
to decide on their primary banking relationship.

4. Digital is evolving - technology devices and software all serve to disrupt

traditional means of communication. Simultaneously, each brings opportunity.

Security is the foundation of digital banking

Security extends from the bank’s hardware to the user’s device - whether a
PC/Mac at home, an iPad or the newest Smartphone. In all cases, digital
banking must employ robust security technologies which protect the
communication, user information and the bank’s IT infrastructure.

Indeed, it is clear that for digital banking to be a rewarding experience for the
customer and a profitable growth area for the banks, technology partners,
payment processing service providers and mobile phone operators - there
ought to be a comprehensive agreement on shared technology standards and
processes. The European Commission has just issued a Green Paper, ‘Towards
an integrated European market for card, internet and mobile payments’ which
addresses many of the issues while being much broader than online banking
itself. Luxembourg’s Lux Trust is a strong step here in moving digital banking
forward in terms of a security standard.
Digital in Private Banking
Private Banks have been slow to introduce digital technology applications for
their customers arguing that the private banking industry is a personal and pre-
dominantly face to face business with little need for such applications to
enhance the relationship. Security and privacy issues are two of the reasons
cited for not embracing these new developments.

However, there are a number of arguments for private banks to seriously

evaluate their digital strategy and make it one of the cornerstones of their
service offering and brand building activities. As the next generation of private
banking clients start to dominate, private banks will need to avoid the image of
an old out-of-date bank that has lost touch with its clients.

Private banking is about being a trusted advisor as well as being connected and
recommended. Since the digital revolution, which started in the
1990’s,people are increasingly turning to the Internet not only to inform
themselves regarding financial products but also the reviews of other
customers using the products and services. Customers are already using social
media to share their views on financial products and services.

Services of ATM.
Any individual having savings bank account with one name or joint holders having
instructions to withdraw with one signature can have our ATM card.
If you have current account with sole proprietorship, or partnership account wherever the
withdrawal is permitted with single signature, the ATM card facility can be enjoyed. The
ATM card can also be used in overdraft accounts against fixed deposit.
Period – The ATM card is issued for five years and than it can be renewed.
Kalupur Commercial Co-operative Bank is a member of NFS and our Rupay ATM cum
Debit card can be operated at 2.5 Lac ATMs and over 9.5 lac POS machines all over
Withdrawal limit: The limit of withdrawal per day is Rs. 50,000/- only.
 Currently, transactions at KCCB Bank ATMs are completely free. For other Bank
ATMs upto 5 Financial or Non-financial transactions during a calendar month are also
free (For Savings Bank accounts only).
 Debit card replacement charges are Rs. 100/- plus GST
 Charges for duplicate / regeneration of Pin (in case of lost or forgotten) are Rs. 50/- plus
We have 53 on site ATM centres and 5 off site centers.

E-Banking (Internet Banking) for the Corporate Customers:

Eligibility Criteria:
Corporate customer having constitution Partnership, Private Ltd., Public Ltd., Society,
HUF, Trust, Limited liability partnership etc. is to be given e-Banking facility by getting
relevant documents as mentioned below.
Relevant Documents :
Following documents are to be obtained from the Corporate customers for enabling for
the Internet Banking service.
1) Application form duly signed and stamped by the authorized person.
2) Board resolution mentioning authority for the documentation signed up and confirming
the following up of terms and conditions.
3) Terms and Conditions documents signed by all the users.
Facilities to be provided :
 Viewing of Balances of all Current, Recurring, Term Deposit, Over draft and loan
accounts attached with the users CIF ID.
 Viewing of transactions of all Current, Recurring, Term Deposit, Over draft and loan
accounts attached with the users CIF ID.
 Fund transfer to own accounts
 Fund transfer to Third party accounts with in the Bank
 Fund transfer to Other Bank accounts through RTGS / NEFT
 Request a new Cheque Book*.
 Request a Demand Draft*
 Request a new account opening*
 Bulk RTGS/ NEFT fund transfer for the corporate customers*
Data Interpretation
Data Interpretation



MALE 72 65%
FEMALE 38 35%
TOTAL 110 100%





Out of 110 respondents that I have taken for my survey 35% respondents are female 65%
respondents are male.
Q.1 what type of Account you have in Kalupur commercial co-operatives bank ?


ACCOUNT 87 79%
TOTAL 110 100%





Out of 110 respondents that I have taken for my survey 79% respondents have saving
account, 0% have current account, 21% have salary account and 0% respondents have
other account which include NRI and fixed deposit account in the bank. It means that the
bank has a very good amount of saving account customers as compare to the other
Q.2 Since how long you are having Account in kalupur commercial cooperatives


0 to 1 year 16 15%
1 to 2 year 55 50%
2 to 3 years 20 18%
3 years to
above 19 17%
TOTAL 110 100%

0 to 1 year 1 to 2 year 2 to 3 years 3 years to


Out of 110 respondents %15 have their account in KALUPUR COMMERCIAL

COOPERATIVE Bank from the last 0 to 1 years, 50% have their account in KALUPUR
COMMERCIAL COOPERATIVE Bank from the last 1 to 2 years,18% have their account
in KALUPUR COMMERCIAL COOPERATIVE Bank from the last 2 to 3 years and
17% have their account in KALUPUR COMMERCIAL COOPERATIVE Bank from the
last 3 years and more.
Q.3 According to you what is more convenient way for banking?


BANKING 81 74%
BANKING 29 26%
TOTAL 110 100%


When the customers are asked about their preference between branch banking and digital
banking 26% customers preferred digital banking and 74% customers preferred branch
banking as a mode of their banking transaction. Above graph reveals their preferences for
the both.
Q.4 Do you know Digital banking service of kalupur commercial co-operatives
Bank ?


YES 110 110
NO 0 0%
TOTAL 110 100%



Out of the 110 respondents all the 100% of them Know digital banking services of
KALUPUR Commercial co-operative bank.
Q.5What are your reasons for choosing our digital banking services?


TOTAL 110 100%



5% 2%



Out of the 110 respondents 41% use digital banking services for convenience, 52% use to
save time, 5% use to Security reason and 2% use due to 24 hour access.
Q.6 Which digital banking services do you are at kalupur commercial cooperatives
bank ?


BANKING 18 16%
ATM 81 74%
TOTAL 110 100%






Out of the 110 respondents 4% of them use internet banking, 16% use mobile banking,
6% using SMS query, and 74% of respondents use ATM service.
Q.7 For what purpose you are use digital banking at kalupur commercial co-
operatives bank?





Out of the 110 respondents 47use digital banking services for money transfer, 60
respondents use to balance detail and 3 respondents use to order cheque book.
Q.8 Do you use kalupur commercial co-operatives bank go digital banking services


YES 106 96%
NO 4 4%
TOTAL 110 100%





As shown in the above pie chart 96% respondents out of 110 are aware about KALUPUR
COMMERCIAL COOPERATIVE bank Go digital initiative while 4% of them are not
Q.9 Do you think kalupur co-operatives bank banking services has improved
thorough Digitalization?


YES 75 68%
NO 35 32%
TOTAL 110 100%


Out of 110 respondents 68% of them use KALUPUR COMMERCIAL COOPERATIVE
Bank Go Digital banking services and 32% do not use it.
Q.10 Please rate that how much digitalization has improved the banking services ?


5 STAR 36 33%
4 STAR 40 36%
3 STAR 28 25%
2 STAR 3 3%
1 STAR 3 3%
TOTAL 110 100%


Out of 110 respondents 33% of them rate 5 stars to the digital improvement in the banking
services, 36% rate it 4 stars, 25% rate 3stars, 3% rate 2 stars and 3% rate 1stars.
Q.11What is your level of satisfaction with kalupur commercial co-operatives bank
digital services?


TOTAL 110 100%




30% 56%


Satisfaction level is very important for the direct banking channel of bank. In above graph
we can see that 56% Customers are fully satisfied with KALUPUR COMMERCIAL
COOPERATIVE bank digital services, 30% customers are satisfied and only 14% are
somewhat satisfied. It indicates that KALUPUR COMMERCIAL COOPERATIVE bank
customers have high satisfaction level from the services they get.
Findings & Suggestions
KALUPUR COMMERCIAL COOPERATIVE bank provides very quick services to its

Here the study shows that the customers visiting bank frequently are highly satisfied
The employees are taking an effort to encourage the use of mobile banking and net
banking for day to day activities as in it will save customers time and energy to visit bank

Most of respondents who are using the Go Digital initiatives of the bank, it is because they are
much aware about the initiatives of the bank.

The customer are using the digital banking services for few purpose it means the use of the digital
banking channel is limited for few transaction.

Most of respondent who are using the digital banking services are satisfied with the service of the
bank for the particular digital banking service.

The response of the respondents indicates that digitalization has a good and positive impact on the
banking services. According to the response of the respondents it shows that digitalization
improved the banking services very much for the customers.

Though the Digital Banking is an effective tool but many of the customers are not using it
due to the awareness of the particular digital banking services. Now the responsibility lies
with the bank to make them aware about various Digital banking channels through publicity
and advertisement Bank should educate the customer about the usage of digital banking
services and also about their advantages.
This would prompt the customers to shift from traditional brick and mortar channel. It has
been observed that even the customers who know about digital banking services are not using
this facility due to misconception and lack of information. These customers should be
targeted by the bank and must be convinced to use the same.
The result of the study show that customers are using only few services of various digital
banking services - for example ATM for view balance and cash withdrawal etc. Customer
should be made aware of these services and must be encouraged to use the same. bank may
improve existing facilities in rural areas through advertising, spread awareness about
computer and internet banking. The best way to motivate the customer to use digital banking
is more efficient customer care service.

This project can useful for the bank
 To know the current satisfaction level of the customers.
 To promote services which are not used by the customers.
 For understanding the behaviour of the customers.
It will also be helpful for others like
 Investors
 Students who wants to study on topic of digitalization banking improved
 Students who wants to study on primary data.
 Other researchers


 The internship has helped to have an practical knowledge of the banking industry.
 This internship has given me the knowledge of how to behave in the corporate.
 I have got to know how to design a questionnaire and how to collect data and
 The study has helped to have an communication with the customers.
 It has helped to study the customer behaviour of the banks.
 During this study I have got to learn the basic activities of the banking


There are certain limitations of this project report which are listed below.

 This study is limited only to the customers of the KALUPUR COMMERCIAL

CO-OPERATIVE bank, Ahmedabad.
 Such behaviour makes hard to collect the data from respondents.
 Some respondents just don’t want to be an part of the study as they say, “No, sorry.It
becomes difficult to calculate the accurate sample needed for the study as population
is indefinite.
 At the time of survey when I give questionnaires to people, they very casually fill it
without think of the depth of the study.
 The responses of the customers may be biased.
 Sample size is limited to 110.
 Another point is people are not disclose their personal data truly.

My study in the Kalupur bank on primary data had enlighten me with various aspects of the
banking activities. In a country like india, there is need for providing better and customized
services to the customers. The present study shows that customer are more reluctant to accept
new technologies or method that might contain little risk.
The continual innovations in the banking industry trends are aimed at bringing all the banking
services on digital platform, making the services accessible for the modern day users
anytime, anywhere. The ease of banking including ultra-fast and cashless transactions that
comes with digital technology pushes the banks to adopt new innovations. The consistent
move to technology will increase customers’ convenience, reduce cost, and also provide
banks with relevant data to process, analyze, and generate insight to make better, smarter

Hence, banks should design the website to address security and trust issue
The survey was conducted with 110 people or the Ahmedabad area. So we can’t say that this
the real trends of net banking of whole the country.




> Dos Santos, B.L., Peffers, K.G. and Mauer, D.C. (1993) “The Impact of Information
Technology Investment Announcements on the Market Value of the Firm”, Information
Systems Research,
> Brynjolfsson Erik (1993) “The Productivity Paradox of Information Technology”,
Communication of ACM..
> Brynjolfsson, Erik, Hitt, Lorin (1996) “Paradox lost? Firm-level Evidence on the Returns to
Information Systems Spending”, Management Science, April.
> Parsons, D., Gotlieb, C.C. and Denny, M. (1993) “Productivity and Computers in Canadian
Banking”, Z. Griliches and J.Mairesse (Eds.), Productivity Issues in Services at the Micro
Level, Kluwer, Boston.
> Reserve Bank of India. (1984). Report of the Committee on Mechanisation in Banking
Constituent College of Kadi Sarva Vishwavidyalaya, Gandhinagar doing Summer
internship project on “A study on DIGITALIZATION IMPROVED THE BANKING
OPERATIVES BANK ”. Kindly, give your valuable responses on following questions. Data
is collected for the academic purpose and confidentially will be maintained.


Name: _________________________________________________
Gender: ________________________________________________
Occupation: ____________________________________________


Q.1 what type of Account you have in Kalupur commercial co-operatives bank?

A. Saving Account ( ) B. Current Account ( )

C. Salary account ( ) D. Other please specify......

Q.2Since how long you are having Account in kalupur commercial cooperatives bank?
A. 0 to 1 year ( ) B. 1 to 2 years ( )
C. 2 to 3 years ( ) D. 3 years &above

Q.3 According to you what is more convenient way for banking?

A. Branch banking ( ) B. Digital banking ( )

Q.4 Do you know Digital banking service of kalupur commercial co-operatives Bank?
A. Yes ( ) B. No ( )

Q.5What are your reasons for choosing our digital banking services?
A. Convenience ( ) C. Security reason ( )

B. To save time ( ) D. 24 hour access ( )

Q.6Which digital banking services do you are at kalupur commercial cooperatives

A. Interne banking ( ) B. Mobile banking ( )
C.SMS Query/ Insta Alert ( ) D. ATM ( )

Q.7 For what purpose you are use digital banking at kalupur commercial co-operatives
A. Money transfer ( ) B. Pay bill ( )
C Balance details ( ) D .Recharge E. loan related

Query ( ) F. Order cheque book ( ) G. Other (please


Q.8 Do you use kalupur commercial co-operatives bank go digital banking services ?
A. Yes ( ) B. No ( )

Q.9 Do you think kalupur cooperatives bank banking services has improved thorough
A. Yes ( ) B. No ( )

Q.10 Please rate that how much digitalization has improved the banking services?
A. 5 star ( ) B. 4 star ( ) C. 3 Star ( ) D 2 star ( ) E. 1 Star ( )

Q.11What is your level of satisfaction with kalupur commercial co-operatives bank

digital services ?
A. Full satisfied ( ) B. Satisfied ( )
C. Somewhat satisfied ( ) D. Not satisfied ( )

Q.12 Any Suggestion or recommendations to kalupur commercial co-operatives bank ?

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