Project.docx

CHAPTER-1 INTRODUCTION

Growth of Electronic banking in a country depends on many factors, such as success of internet access, new online banking features, household growth of internet usage, legal and regulatory framework. E-banking offers speedier, quicker and dependable services to the customers through which they are more satisfied than that of manual system of banking. E-banking system not only generates viable return, but also ensures better dealings with customers. The rationale of this research is to recognize the impact of variables of e-banking on customer pleasure. Banking sector is modernizing tremendously and expanding in different financial spheres. Simultaneously banking is becoming faster and easier. In order to survive in the global competitive era, commercial banks are seeking for better service opportunities to enhance customers’ satisfaction. Businesses seeking to improve profitability are thus advised to monitor and to upgrade their service quality on an ongoing basis . Technology plays a vital role in improving the quality of services provided by the business units. One of the technologies which really brought information revolution in the society is internet technology and is rightly regarded as the third wave of revolution after agricultural and industrial revolution. Internet banking allows banking from anywhere, anytime and is used for transactions, payments etc. over the internet through a bank’s website. In contrast to traditional banking, internet banking involves non-human interactions between customers and online bank information system. Customer satisfaction, customer retention and new customer acquisition are the key factors in internet banking. Internet banking is a new delivery channel for banks in India. The internet banking is both an informative and a transactional medium. However, internet banking has not been popularly adopted in India. The study suggests that larger banks or banks with younger age, private ownership and lower branch intensity possess high probability of adoption of this new technology. Banks with lower market share also perceive internet banking technology as a means to increase the market share by attracting more and more customers through this new delivery channel. However, the service quality in internet banking from customers needs thorough analysis to find out the determinants for success and growth of new delivery channel in India. To this end, this study aims at determining the service quality of banks operative in India with regards to internet banking and identifying the important parameters for service quality from customers’ perspective. The purpose of this study is to explain the relationship between usability dimensions and success variables. The banking industry is chosen because of the fact that Internet banking applications are considered one of the most successful and most established internet applications ever MEASURING CUSTOMERS’ SATISFACTION IN THE BANKING INDUSTRY Banking operations are becoming increasingly customer dictated . The ability of banks to offer clients access to several markets for different classes of financial instruments has become a valuable competitive edge. With the explosion of the country’s population and the increased demand for banking services – speed and quality of service are the key differentiators for bank’s future success. Thus it is imperative for banks to get feedback regarding quality aspects of retail banking, which in turn will help them to take remedial measures to maintain a competitive edge. Customer’s mind is a mystery which is difficult to predict and understand the perception to attain satisfaction is a challenging task. This exercise in the context of the banking industry will give us an insight into the parameters of customers’ satisfaction and their measurement. The customers’ requirements must be translated and quantified into measurable targets. This provides an easy

way to monitor improvements, and to decide the attributes that need to be concentrated in order to improve customers’ satisfaction. NEED TO MEASURE CUSTOMERS’ SATISFACTION Satisfied customers are central to optimal performance and financial returns. Customers are viewed as a group whose satisfaction with the enterprise must be incorporated in strategic planning efforts. With better understanding of customers’ perceptions, companies can determine the actions required to meet the customers’ needs. They can identify their own strengths and weaknesses, where they stand in comparison to their competitors, chart out path for future progress and improvement. As buyers become empowered, sellers have no choice but to adapt. The service industries are mostly customer driven and their survival in competitive environment largely depends on quality of the service provided by them. No other medium other than the Internet – the fastest growing form of communication media in history has ever confronted its users with such a vast and diverse difficulties of use. Users – especially beginners – can fail at several hurdles like issues related to technical infrastructure and the appropriate use of a computer. Not only users but also organizations are affected adversely due to these difficulties. Sales and saving potential is endangered when users are not able to easily and quickly complete the essential search and order processes. Deficient usability exposes successful online business transactions at risk. Customers’ satisfaction is quite a complex issue and there is a lot of debate and confusion about what exactly is required and how to go about it. This article is an attempt to review the necessary requirements, and discuss the steps to be taken to measure and track customers’ satisfaction. DEVELOPMENT OF INTERNET BANKING IN INDIA The financial reforms that were initiated in the early 1990s and the globalization and liberalization measures brought in a completely new operating environment to the banks. The bankers are now offering innovative and attractive technology – based services and products such as “Anywhere Anytime Banking”, “Tele Banking”, “Internet Banking” etc. to their customers to cope with the competition. The process started in the early 1980s when Reserve Bank of India (RBI) set up two committees in quick succession to accelerate the pace of automation of operations in the banking sector. A high – level committee was formed under the chairmanship of Dr. C. Rangarajan, then Governor of RBI, to draw up a phased plan for computerization and mechanization in the banking industry over a five year time frame of 19851989. The focus by that time was on customer service and two models of branch automation were developed and implemented. Having gained experience in the earlier mode of computerization, the second Rangarajan committee constituted in 1988 drew up a detailed perspective plan for computerization of banks for extension of automation to other areas such as funds transfer, e-mail, ATMs, internet banking etc. The Government of India enacted the Information Technology Act, 2000, with effect from 17 October 2000 to provide legal recognition to electronic transactions and other means of electronic commerce. Internet banking in India is currently at a nascent stage. ICICI bank is the pioneer to have introduced internet banking for a limited range of services such as access to account information, correspondence and funds transfer among its branches. STATUS OF INTERNET BANKING IN INDIA

In Indian context, many publications throw light over the importance of internet banking and also its prospects for the Indian banking industry. Unnithan and Swatman (2001) studied the drivers for change in the evolution of the banking sector, and the move towards electronic banking by focusing on two economies, Australia and India. The study found that Australia is a country with internet ready infrastructure as far as telecommunications, secure protocols, PC penetration and consumers’ literacy are concerned. India, by comparison, is overwhelmed by weak infrastructure, low PC penetration, developing security protocols and consumer reluctance in rural sector. Although many major banks have started offering internet banking services, the slow pace will continue until the critical mass is achieved for PC, internet connections and telephones. Rao and Prathima (2003) provided a theoretical analysis of internet banking in India, and found that as compared to the banks abroad , Indian banks offering online services still have a long way to go. For online banking to reach a critical mass, there has to be sufficient number of users and the sufficient infrastructure in place. However, it is still in its evolutionary stage.It shows that only 48 % of the commercial banks operating in India as on March – end 2005 offers internet banking. In India, comparatively less number of studies has been conducted on the current status of internet banking and customer satisfaction compared to other countries. Thus, there is a lot of scope for the research to present new ideas concerning internet banking in India which may be useful to the Indian banking industry. To succeed in today’s electronic markets, a strategic and focused approach is required. SERVICE QUALITY IN THE CONTEXT OF INTERNET BANKING The definition of quality is contextual and is different from individual perspective. In general, the quality is basically classified into five categories, viz. transcendent, product led, process or supply led, customer led or value led. Basically service quality in internet banking can be viewed from two perspectives: • Customers’ perspective • Providers’ perspective CUSTOMERS’ PERSPECTIVE From the perspective of the customers, the service quality differentiates sought quality and perceived quality. Sought quality is the level of quality, the customers explicitly or implicitly demand and expect from service providers. The sought quality is created due to several factorsprimarily, the expectations formed during a previous personal experience of a customer with a service and by the image of an organization. Perceived quality means the overall impression a customer has and experiences about the level of quality after service realization. The potential difference between the sought quality and the perceived quality gives the service provider an opportunity to measure customers’ satisfaction based on formulating the precise and actual criteria according to which the customers are assessing the services. PROVIDERS’ PERSPECTIVE From the providers’ perspective, there are target quality and delivered quality. The focus of process - or supply - led quality definition is rather internal than external, and it is defined as conformance to requirements. It lays emphasis on the importance of the management and the

supply-side quality, and there is an important role of the process in determining the quality of outcome . Achieving the quality of conformance between the planned quality level and the real quality delivered to customers depends on the service quality management system in an organization.

CHAPTER-2 COMPANY PROFILE

STATE BANK OF INDIA

State Bank of India (SBI) is an Indian multinational, public sector banking and financial services company. It is a government-owned corporation with its headquarters in Mumbai, Maharashtra. On 1st April, 2017, the State Bank of India, which was India's largest bank, merged with five of its associate banks (State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore), and with the Bharatiya Mahila Bank. This was the first ever large scale consolidation in the Indian banking industry. With the merger, SBI became one of the 50 largest banks in the world (balance sheet size of ₹33 trillion, 278,000 employees, 420 million customers, and more than 24,000 branches and 59,000 ATMs). SBI's market share was projected to increase to 22 percent from 17 per cent. It has 198 offices in 37 countries; 301 correspondents in 72 countries. The company is ranked 232nd on the Fortune Global 500 list of the world's biggest corporations as of 2016. The bank descends from the Bank of Calcutta, founded in 1806, via the Imperial Bank of India, making it the oldest commercial bank in the Indian subcontinent. The Bank of Madras merged into the other two "presidency banks" in British India, the Bank of Calcutta and the Bank of Bombay, to form the Imperial Bank of India, which in turn became the State Bank of India in 1955.[8] Government of India owned the Imperial Bank of India in 1955, with Reserve Bank of India (India's Central Bank) 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. State Bank of India has 20% market share in deposits and loans among Indian commercial banks.

Operations

SBI provides a range of banking products through its network of branches in India and overseas, including products aimed at (NRIs). SBI has 14 regional hubs and 57 Zonal Offices that are located at important cities throughout India.

Domestic presence SBI has 18,354 branches in India. In the financial year 2012–13, its revenue was ₹2.005 trillion (US$31 billion), out of which domestic operations contributed to 95.35% of revenue. Similarly, domestic operations contributed to 88.37% of total profits for the same financial year. Under the Pradhan mantri jan dhan yojana of financial inclusion launched by Government in August 2014, SBI held 11,300 camps and opened over 3 million accounts by September, which included 2.1 million accounts in rural areas and 1.57 million accounts in urban areas.

International presence As of 2014–15, the bank had 191 overseas offices spread over 36 countries having the largest presence in foreign markets among Indian bank.. SBI operates several foreign subsidiaries or affiliates. In 1989, SBI established an offshore bank: State Bank of India International (Mauritius) Ltd in Mauritius. SBI International (Mauritius) Ltd amalgamated with The Indian Ocean International Bank, which has been doing retail banking business in Mauritius since 1979 with the new name, SBI (Mauritius) Ltd. Today, SBI (Mauritius) Ltd is having fully integrated 14 branches- 13 Retail Branches covering major cities and town of Mauritius, including Rodrigues, and 1 Global Business Branch at Ebene in Mauritius. Apart from Branch Banking, customers also have the convenience of 24x7 ATM Banking at 18 ATMs across the country. Bank also has a 24x7 robust Internet Banking Channel enabling customers to work from their homes and offices. State Bank of India Branch at Sri Lanka The Jaffna branch was opened on 9 September 2013. SBI Sri Lanka, the oldest bank in Sri Lanka, celebrated its 150th year in Sri Lanka on 1 July 2014. State Bank of India (S.B.I.) Branch at Tsim Sha Tsui, Hong Kong In 1982, the bank established a subsidiary, SBI, which now has ten branches—nine branches in the state of California and one in Washington, D.C. The 10th branch was opened in Fremont, California on 28 March 2011. The other eight branches in California are located in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, San Diego, Tustin and Bakersfield. In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the Indo–Nigerian Merchant Bank and received permission in 2002 to commence retail banking. It now has five branches in Nigeria. In Nepal, SBI owns 49% of SBI Nepal (State Bank in Nepal) share with Nepal Government owing the rest and SBI NEPAL has branches throughout the country in each and every city In Moscow,

In Indonesia, it owns 76% of PT Bank Indo Monex. The State Bank of India already has a branch in Shanghai and plans to open one in Tianjin. In Kenya, State Bank of India owns 76% of Giro Commercial Bank, which it acquired for US$8 million in October 2005. In January 2016, SBI opened its first branch in Seoul, South Korea following the continuous and significant increase in trade due to the Comprehensive Economic Partnership Agreement signed between New Delhi and Seoul in 2009

Associate banks Main Branch of SBI in Mumbai SBI acquired the control of seven associate banks in 1960. They were the seven regional banks of former Indian princely states, all of them which were renamed with the prefix 'State Bank'. These seven banks were State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Mysore (SBM), State Bank of Patiala (SBP), State Bank of Travancore (SBT), State Bank of Saurashtra(SBS) and State Bank of Indore (SBI - Indore). All these banks used the same logo as its parent bank. The plans for making SBI a mega bank with trillion dollar business by merging associate banks started in 2008, and in September the same year, SBS merged with SBI. The very next year, SBIIndore also merged.. The negotiations for merging of 6 associate banks (State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore and Bharatiya Mahila Bank) by acquire their businesses including assets and liabilities with SBI started in 2016. The merger of these six subsidiaries was approved by Union Cabinet on 15 June 2016. The State Bank of India and all its associate banks use the same blue keyhole logo. The State Bank of India wordmark usually has one standard typeface, but also utilises other typefaces.

Non-banking subsidiaries Apart from its five associate banks (merged with SBI since April 1, 2017), SBI also has the following non-banking subsidiaries:     

SBI Funds Management Pvt Ltd SBI Factors & Commercial Services Pvt Ltd Payments Services Pvt. Ltd. (SBICPSL) SBI DFHI Ltd SBI General Insurance

In March 2001, SBI (with 74% of the total capital),to form a joint venture life insurance company named SBI Life Insurance company Ltd. In 2004, SBI DFHI (Discount and Finance House of India) was founded with its headquarters in Mumbai.

HDFC

HDFC (Housing Development Financial Corporation) Bank Limited is an Indianbanking and financial services company headquartered in Mumbai, Maharashtra. It has 84,325 employees and has a presence in Bahrain, Hong Kong and Dubai. HDFC Bank is India’s largest private sector lender by assets.It is the largest bank in India by market capitalization as of February 2016.It was ranked 69th in 2016 BrandZ Top 100 Most Valuable Global Brands

Business Focus HDFC Bank’s mission is to be a World Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank’s risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance.

Capital Structure As on 31st March, 2015 the authorized share capital of the Bank is Rs. 550 crore. The paid-up share capital of the Bank as on the said date is Rs501,29,90,634/- ( 2506495317 ) equity shares of Rs. 2/- each). The HDFC Group holds 21.67 % of the Bank's equity and about 18.87 % of the equity is held by the ADS / GDR Depositories (in respect of the bank's American Depository Shares (ADS) and Global Depository Receipts (GDR) Issues). 32.57 % of the equity is held by

Foreign

Institutional

Investors

(FIIs)

and

the

Bank

has

4,41,457

shareholders.

The shares are listed on the Bombay Stock Exchange Limited and The National Stock Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global Depository Receipts

Amalgamation Of Times Bank & Centurion Bank Of Punjab With HDFC (GDRs) are listed on Luxembourg Stock Exchange under ISIN No US40415F2002. On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was formally approved by Reserve Bank of India to complete the statutory and regulatory approval process. As per the scheme of amalgamation, shareholders of CBoP received 1 share of HDFC Bank for every 29 shares of CBoP. The amalgamation added significant value to HDFC Bank in terms of increased branch network, geographic reach, and customer base, and a bigger pool of skilled manpower. In a milestone transaction in the Indian banking industry, Times Bank Limited was merged with HDFC Bank Ltd., effective February 26, 2000. This was the first merger of two private banks in the New Generation Private Sector Banks. As per the scheme of amalgamation approved by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank

Business Profile HDFC Bank caters to a wide range of banking services covering commercial and investment banking on the wholesale side and transactional / branch banking on the retail side. The bank has three key business segments: 

Wholesale Banking The Bank’s target market is primarily large, blue-chip manufacturing companies in the Indian corporate sector and to a lesser extent, small & mid-sized corporates and agri-based businesses. For these customers, the Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of structured solutions, which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers.



Treasury Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalisation of the financial markets in India, corporates need more sophisticated risk management information, advice and product structures. These and fine pricing on various treasury products are provided

through the bank’s Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio. 

Retail Banking The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class service and delivered to customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, NetBanking and Mobile Banking. The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions, information and advice on various investment avenues. The Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider of Depository Participant (DP) services for retail customers, providing customers the facility to hold their investments in electronic form. HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank launched its credit card business in late 2001.

Products and services HDFC Bank provides a number of products and services including wholesale banking, retail banking, treasury, auto loans, two wheeler loans, personal loans, loans against property and credit cards. The latest entry in the league is 'Project AI' under which HDFC Bank, over the next few weeks, would deploy robots at select bank branches. These robots will offer options such as cash withdrawal or deposit, forex, fixed deposits and demat services displaying on a screen to customers.

Acquisitions HDFC Bank merged with Times Bank in February 2000. This was the first merger of two private banks in the New Generation private sector banks category.In 2008, Centurion Bank was acquired by HDFC Bank. HDFC Bank Board approved the acquisition of CBoP for 95.1 billion INR in one of the largest mergers in the financial sector in India.

CHAPTER 3 RESEARCH METHODOLOGY

RESEARCH METHODOLOGY OF THE STUDY Research Methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In other words, Methodology is the systematic, theoretical analysis of the methods applied to a field of study, or the theoretical analysis of the body of methods and principles associated with a branch of knowledge. It typically, encompasses concepts such as paradigm, theoretical model, phases and quantitative or qualitative techniques.

A Methodology does not set out to provide solutions but offers the theoretical underpinning for understanding which method, set of methods or so called “best practices” can be applied to a specific case.

Following are the steps conducted in a Research Methodology:-

❖ ❖ ❖ ❖ ❖

Meaning of research.

Problem statement.

Research design.

Sample design.

Data collection.

❖

Analysis and Interpretation of data.

RESEARCH

The word ‘research’ comprises of two words i.e. ‘re’ which means again and the latter i.e. ‘search’ which means to examine closely and carefully or to test and try. Together they form a careful, systematic, patient study and investigation in some field of knowledge undertaken to establish principles/ policies.

Research is an art of scientific investigation. Research is a process of analyzing an issue with an objective in foresight and then using various tools to make the procedure easy and carefully focusing and collecting the data. The search for knowledge through objective and systematic method of finding solution to a problem is a research.

Types of Research:The research is of following types:-

1. Quantitative Research 2. Basic Research 3. Applied Research 4. Longitudinal Research 5. Qualitative Research

6. Descriptive Research 7. Comparative Research 8. Explorative Research 9. Action Research 10. Explanatory Research

RESEARCH DESIGN

A research design is purely and simply the frame work of plan for a study that guides, the collection and analysis of the data. Application and specification are the main characteristic in a research designs. Marketing research designs can be classified on basis of the fundamental objectives of the research.

DATA

Data are basic values or facts. It is one of the most important and vital aspect of any research study.

The data is of following 2 types:



Primary Data : Primary research consists of a collection of original primary data. It is often undertaken after the researcher has gained some insight into the issue by reviewing secondary research or by analyzing previously collected primary data. It can be accomplished

through various methods, including questionnaires and telephone interviews in market research, or experiments and direct observations in the physical sciences, amongst others.

The term primary research is widely used in academic research, market research and competitive intelligence.

Methods of collecting primary data:

Primary data are always collected from the source. It is collected either by the investigator himself or through his agents. There are different methods of collecting primary data. Each method has its relative merits and demerits. The investigator has to choose a particular method to collect the information. The choice to a large extent depends on the preliminaries to data collection some of the commonly used methods are discussed below:

1. Direct Personal observation 2. Indirect Oral Interviews 3. Mailed Questionnaire method 4. Schedule Method 5. From Local Agents

➢

Secondary Data : Secondary data is data collected by someone other than the user. Common sources of secondary data for social science include censuses, organisational records and data collected through qualitative methodologies or qualitative research.

Sources for collection of Secondary data in statistics:

Secondary data are second hand information. They are not collected from the source as the primary data. In other words, secondary data are those which have already been collected. So they may be relatively less accurate than the primary data. Secondary data are generally used when the time of enquiry is short and the accuracy of the enquiry can be compromised to some extent. Secondary data can be collected from a number of sources which can broadly be classified into two categories:-



Published Sources:

Mostly secondary data are collected from published sources. Some important sources of published data are the following. 1. Published reports of Central and State Governments and local bodies. 2. Statistical abstracts, census reports and other reports published by different ministries of the Government.



Unpublished Sources:

Statistical data can also be collected from various unpublished sources. Some of the important unpublished sources from which secondary data can be collected are: 1. The research works carried out by scholars, teachers and professionals. 2. The records maintained by private firms and business enterprises. They may not like to publish the information considering them as business secret. 3. Records and statistics maintained by various departments and offices of the Central and State Governments, Corporations, Undertakings etc.

SAMPLE DESIGN

A sample design is a definite plan for obtaining a sample from the sampling frame. It refers to the technique or the procedure that is adopted in selecting the sampling units from which inferences about the population is drawn. Sample design is determined before the collection of the data..

Sample Size :- 100 Respondents.

Instrument : -Questionnaire.

QUESTIONNAIRE

Consists of no. of questions printed or typed in definite order on a form or a set of forms. Respondents have to answer the question on their own..

It can be Closed Ended or Open Ended

Open Ended: - Allows respondents to answer in their own words & are difficult to Interpret.

Close Ended: - Pre-specify all the possible answers & are easy to Interpret.

SCOPE OF THE STUDY

For the purpose of the study descriptive research is used, where the data is collected by using both primary and secondary sources. The sample size of consists of 100 respondents and the sampling method is probability sampling. The primary information is collected with the help of questionnaire in order to make appropriate analysis.

CHAPTER-4 DATA ANALYSIS INTERPRETATION

Q1. Age details of the respondents

AND

AGE BELOW 20 20-30 YEARS 31-40 YEARS ABOVE 40 YEARS

RESPONDENTS 12 55 17 16

Q.2 Type of customers. PROFESSION BUSINNESMAN SELF EMPLOYED WORKING PROFESSIONAL GOVT. SERVICE

HDFC 20 23 45

SBI 16 18 23

12

43

50 45 40 35 30 HDFC

25

SBI

20 15 10 5 0 A

B

C

D

Interpretation - As per the study the govt. employees are main customers of SBIbank and businessman are less minimum. On the other side working professional are main customers of HDFC bank

Q3.Income level

INCOME BELOW 50000 50000-100000 100000-500000 ABOVE 500000

RESPONDENTS 27 10 23 40

RESPONDENTS

A B C D

Q.4 Source of communication (From where customers get the Information about bank). SOURCE ADVERTISEMENT FAMILY FRIEND OTHERS

RESPONSE 30 35 25 10

Column1

ADVERTISEMENT FAMILY FRIEND OTHERS

Inrerpretation - As per the study the family members are the main sources of Communication about bank and advertisement is other sources

Q5.Awareness regarding Net Banking Service provided by HDFC Bank and SBI bank.

RESPONSE

HDFC SBI

Interpretation - From the data collected it was found that majority of the respondents that is 55% were aware of the net banking service provided by HDFC Bank while 45% of the respondents were not aware of the same service.

Q6.Net Banking services of HDFC Bank availed. SERVICES VIEW A/C BALANCES AND STATEMENTS TRANSFER FUNDS CREATE FIXED DEPOSIT ONLINE REQUEST A DEMAND DRAFT PAY BILLS

HDFC 34

SBI 31

32 9

23 13

5

10

20

23

40 35 30 25 HDFC

20

SBI 15

10 5 0 A

B

C

D

E

Interpretation - It was found that the majority of the respondents that is 34% of the respondents used the net banking service for viewing accounts and balances from HDFC, followed by the respondents who availed the same for transferring the funds between accounts from

hdfc and for paying the bills from sbi respectively. Marginally 5% and 10% of the respondents used the service to request a demand draft from hdfc and sbi respectively.

Q7. Frequency of using the Net Banking service in a month. FREQUENCY

HDFC

SBI

LESS THAN ONCE

35

20

1-5 TIMES

45

34

5-10 TIMES

12

20

MORE THAN 10 TIMES

8

16

50 45 40 35 30 HDFC

25

SBI

20 15 10 5 0

A

B

C

D

Interpretation - I t w a s f o u n d t h a t t h e m a j o r i t y o f t h e r e s p o n d e n t s t h a t i s 4 5 % u s e d t h e N e t B a n k i n g service one to five times in a month of hdfc bank while 35 % and 20% said that they used the same service less than once in a month from hdfc and sbi bank respectively.

Q8. Difficulties faced while using the Net Banking service of HDFC Bank. DIFFICULTIES LOGGING IN TO YOU’RE A/C

HDFC 20

SBI 25

MAKING TRANSACTIONS SAFETY ISSUES UNABLE TO UNDERSTAND WEBPAGES CHANGING OF PIN AND PASSWORD

27 40 8

34 18 16

5

7

45 40 35 30 25

HDFC

20

SBI

15 10 5 0 Category 1

B

C

D

E

INTERPRETATION - It was found that the majority of the respondents that is 40% said that safety issues was the major difficulty that they faced while using the Net Banking service in hdfc bank, followed by34% of the respondents who felt that making transactions with the bank through NetBanking was difficult in sbi bank. However, 8% of the respondents faced difficulty in understanding t h e w e b p a g e s i n h d f c b a k a n d 7 % o f t h e r e s p o n d e n t s f e l t t h a t c h a n g i n g t h e P I N a n d P a s s w o r d regularly was difficult in SBI bank.

Q9. Reasons due which Net Banking service is not popularly used. REASONS NET BANKING WEBPAGES ARE CONFUSING USE OF COMPUTER OR INTERNET IS DIFFICULT NETBANKING IS NOT SECURED

HDFC 23

SBI 29

19

12

34

36

NETBANKING OFFERS RECEIPTS NO PAYMENTS

NO 24

23

6

5

4 Series 1 3

Series 2 Series 3

2

1

0 Category 1

Category 2

Category 3

Category 4

Interpretation - The Net banking is not secured was ranked first that is the most important reason while use of internet is difficult was given the last rank

CHAPTER-5 FINDINGS AND CONCLUSION

FINDINGS 1. The average income level of the respondents is below 5 lakhs rupees implying that most of the respondents belong to either lower middle income group or upper middle income group. 2. The profession of the respondents conveys the need for their banking services and the study identified that most of the respondents are preferring e-banking which includes internet banking, ATMs, tele banking etc 3.A study of the factors, influencing the usage was made by listing out various factors such as alltime availability, ease of use, nearness etc., and amongst the various factors all time availability isranked as the major motivating factor, followed by ease of use, direct access, nearness indecreasing order of importance. 4.Age of the respondents conveys the attitudes towards the service quality, from the study it concluded that most of the respondents are young and they have high expectation from the banks regarding the services quality offered by them. 5.Among the users, various problems that are encountered while using e-banking services. Safety issues was the major reason that create hurdles in its usage, while time consumption,accounting mistakes such as amount debited but not withdrawn and change of mobile number seem to be the least bothering problems. 6.Personal safety of the customer and his or her possessions while participating in or benefiting from the service offered by the bank should be ensured by the banker. This includes the maintenance of confidentiality about the customer information and his/ her account details etc.

CONCLUSIONS 1.Customers were not fully aware of the services.. Therefore Banks should try to give some more information to its existing customers. 2.