A Project Report

On “CUSTOMERS’

ATTITUDE TOWARDS INTERNET BANKING IN CITY UNION BANK ”

Submitted in fulfillment of the award of The degree of MBA (Insurance & Banking) from

AMITY UNIVERSITY, UP

Submitted By Name: VIVEK HUMAAR.S.K

Industry Mentor Name: Mr. SURESH.V.K

Faculty Mentor Name: Mr. RAJESH VERMA Designation: Sr. PROFESSOR ASIBAS

Course: MBA-INSURANCE & BANKING Designation: CHIEF MANAGER Batch: 2011-2013 Company: CITY UNION BANK

Amity University Campus, I-1 Block, 1st Floor, Sector-125, Noida. Dist: Gautam Buddha Nagar, U.P. - 201 303.

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CUSTOMERS’ ATTITUDE TOWARDS INTERNET BANKING IN CITY UNION BANK
Submitted to Amity University for the fulfillment of the summer internship for MBA (Insurance & Banking) in ASIBAS 2011-2013
Submitted by: Supervised by:

VIVEK KHUMAAR.S.K A2828411021 MBA – Insurance & Banking skvivekkhumaar@yahoo.co.in

Mr. V.K. SURESH Chief Manager CITY UNION BANK # 48, Mahalakshmi Street T.Nagar, Chennai -600 017

UTTAR PRADESH
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1. DECLARATION

Amity University, “CUSTOMERS’ATTITUDE TOWARDS INTERNET BANKING IN CITY UNION BANK” has been done for the partial requirement for the completion of my degree.

I VIVEK KHUMAAR.S.K doing MBA- Insurance and Banking from Noida hereby declare that, the project entitled

The project is the result of my project work and source of literature used and all assistance received during the work has been duly acknowledged.

Place: CHENNAI Date:

VIVEK KHUMAAR.S.K

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2. CERTIFICATE
This is to certify that VIVEK KHUMAAR.S.K (A2828411021) from the Amity University, Noida has successfully completed his summer internship project (SIP) on “CUSTOMERS’ATTITUDE TOWARDS INTERNET BANKING IN CITY UNION BANK” with CITY UNION Bank, T.NAGAR, CHENNAI branch from 4th May 2012 to 3th July 2012 in partial fulfillment of MBA curriculum as prescribed by Amity University.

During his training period, his work and conduct were found to be excellent.

We wish him all success for his future.

Place: CHENNAI Date: 02-07-2012 (Chief Manager)

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3 . ACKNOWLEDGEMENT

This report has been prepared during the completion of Summer Internship Programme during MBA (Insurance & Banking) programme at AMITY UNIVERSITY, NOIDA (U.P). I have personally learnt and benefitted well which would help in my future work. It was an attempt to learn in a pure spirit and working on this project has been an enriching experience. With the completion of my project I show my humble gratitude and thanks to those who have helped me throughout this project. I would like to thank my faculty guide Prof. RAJESH VERMA (Faculty guide, Amity University ), who has been very patient and always gave me support whenever I approached him with my problems and queries . I express my sincere thanks to CITY UNION BANK (T.NAGAR, CHENNAI) for giving me an opportunit y to work with them through this project. I take this opportunity to express m y profound sense of gratitude to m y industry mentor MR.V.K.SURESH, CHIEF MANAGER , T.NAGAR, CITY UNION BANK whose sincere co -operation and guidance enabled the project to assum e its s ystematic form. I am also thankful to various respondents whose responses were of great help in arriving a t the findings. Finall y I would like to thank my famil y and friends who constantl y helped me and showed trust in me that I could work well on this project.

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7. Questionnaire 12. 2.TABLE OF CONTENTS Chapters Page No. 3. 4. 8. 9. Declaration Certificate Acknowledgement Introduction Abstract Scope of the Study Objectives of the Study History of the Study Review Of Literature 10. SWOT Analysis 6 . Research Methodology 11. 5. 1. 6.

13. Bibliography 7 . PIE CHART REPRESENTATIONS OF QUESTIONNAIRE 14. Chi square Test 15. Tentative Chapter Scheme 16.

In 1963. (Big) Street. 'The City Forward Bank Limited' and 'The Union Bank Limited' were amalgamated with the Bank under a scheme of amalgamation with the resultant addition of six 8 . In April. on 22nd March 1945. 1954 at Kumbakonam under the Presidentship of Shri.S. Ayyampet. Manapparai. A. The first Branch of the Bank was opened at Mannargudi on 24th January 1930. S. 'The Kumbakonam Bank Limited' as it was then called was incorporated as a limited company on 31st October. 1934. 2401622.Krishnaswami Iyengar and T.S.Srinivasan.cityunionbank.Raghavachariar was the First Agent of the Bank.2431746 www.. 1965.2402322. He held the position of Secretary from 1926 to 1929 and that of Managing Director from 1929 to 1963. Introduction CITY UNION Bank Profile Registered Office 149. Valangaiman. Shri. Editor. the bank took over the assets and liabilities of the Common Wealth Bank Limited and in the process annexed to it the five Branches of Common Wealth Bank Limited at Aduthurai. Tiruvarur.C. The Bank was included in the Second Schedule of Reserve Bank of India Act.R. The first Memorandum of Association was signed by twenty devoted and prominent citizens of Kumbakonam including Sarvashri R. He was succeeded by Shri. V. Tirukattupalli.4. Mahalinga Iyer as Secretary who subsequently became the First full-time Managing Director of the bank in tune with the amendment of Articles in 1929. Kodavasal.612 001. Mayuram and Porayar within a span of twenty five years. Santhanam Iyer. Phone: 0435 . Jayankondacholopuram and Ariyalur. Kumbakonam . R. T. Santhanam Iyer who became the Secretary of the bank under the amended Articles of Association which created the office of a Secretary to be in charge of the Bank's Management in the place of the Agent.Raghavachariar. which post he held till his death in 1926. The Bank celebrated its Golden Jubilee on 14th November.R. 2402412 Fax: 0435 .com The bank. two other local banks viz. The bank in the beginning preferred the role of a regional bank and slowly but steadily built for itself a place in the Delta District Thanjavur. Sannanallur. In 1957. Thereafter.Krishna Iyer. 'Swadesmitran' & Director. S. 1904. he was succeeded by Shri R. T.Venkataramani Iyer took charge as the Chairman of the Bank which position he held up to 1969. In 1908. branches were opened at Nagapattinam.S. Reserve Bank of India.

In tune with the national image attached to the Bank.R. M. assumed charge as the Chairman and Chief Executive Officer of the Bank with the approval of Reserve Bank of India consequent to the completion of the term by Shri. a Young Chartered Accountant from Thippirajapuram village near Kumbakonam. V.Narayanan. the bank's first branch at Madras was opened at Thiyagaraya Nagar. The first branch outside the state of TamilNadu was opened at Sultanpet. Chidambaram and Salem. During the period 1974-1976 Branches were opened at Periyakulam. the Bank's name was changed to 'City Union Bank Limited' with effect from December. When Shri.more branches viz. Tirunelveli and Karaikudi. Keelapalur. Tirupanandal and Kuttalam. Madurai.Muthiah Chettiar. Bangalore in Karnataka in September. a former Officer of Reserve Bank of India to be at the helm of affairs as Chairman and Chief Executive Officer which event proved to be a turning point in the annals of the Bank. Kottur. Sembanarkoil. Pudukkottai.A. Shri. 1969 the Bank secured the services of Shri. Under the new Management the Branch Expansion got a fresh impetus and branches were opened at Eravancheri. In May. O. 1980.1979 the bank has opened ten more branches including those at George Town (Madras). Pattukkottai. . Tiruvarur Town and Coimbatore during the period from March.Arunachalam as Guests of Honour. At that time. Thanjavur.Srinivasan. The Bank celebrated its Platinum Jubilee on 9th December. 1973. Srinivasan. the Bank's name was changed to 'The Kumbakonam City Union Bank Limited'. K.. V.Secretary Shri. V. Nannilam. Tirumakkottai.Srinivasan relinquished his office in June 1977. Kosi. G. Dindigul.Narayanan was elevated to the rank of the Secretary. In November. O. K.Rengasamy Moopanar. Cuddalore. Tiruvidaimarudur. Koradacherry. Branches were also opened at the twin cities of Hyderabad and Secunderabad in Andhrapradesh.V. 1979 at Kumbakonam with Dr. In November 1965.Mani and Shri.Narayanan was appointed as Assistant Secretary of the Bank. K. the then Secretary Shri. another former Senior Officer of Reserve Bank of India. Mount Road (Madras). The event opened a glorious chapter in the history of the bank. From July. 1974 the bank secured the services of Shri. Triplicane (Madras). The Bank started its own Staff Training College on 21st August.1977 to September. Kumbakonam-Town. In April. as its Secretary. 9 .Srinivasan was appointed as Chairman and Chief Executive Officer of the Bank and the then Asst. 1987. 1968 to August. 1980. Consequently. Mandaveli (Madras).R.Srinivasan. Rajah Sir M. Tiruchirapalli. Shri. Shri. 1989 at Kumbakonam with the avowed objective of imparting need based and result oriented training to its Staff Members irrespective of the cadre. the then Secretary Shri.

Retired Chairman. V.Taking into account the bank's financial strength. N. R. his tireless efforts in augmenting the Bank's Business.Narayanan. ICICI. the facts of which can be vouchsafed by the financial results of the bank during his tenure as Chairman. Doha Bank and Bank of India for effective and speedy receipt of funds remitted form abroad.Venkataraman. V. nearly one third of the period of its existence and progress centered around a key person. Shri.The Bank has entered into Memoranda of understanding with Life Insurance Corporation of India and National Insurance Company Limited for selling their insurance products. Supreme Court.Rengachari. Judge. maintaining harmonious industrial relations. Automated Teller Machines (ATMs) have been installed at select centres where the Card holders can withdraw cash. Dr. make balance enquiries and obtain Statement of accounts The bank obtained license from Insurance Regulatory Authority of India (IRDA) to act as Corporate Agent for selling insurance products and to provide value added services to the public at large . 10 . New Delhi and Shri. But the bank has lost its illustrious Chairman Shri. The bank has entered into an agreement with Tata Consultancy Services Limited for introducing Core Banking Solution [CBS] and all the branches have been brought under Core Banking Solution [CBS] as on date. Reserve Bank of India has granted an �Authorised Dealers License� to deal in Foreign Exchange business with effect from October. 2003 at the Saraswathi Patasala Girl's Higher Secondary School Grounds. In the glorious history of City Union Bank Limited.R. Former President of India.A. The Bank has also entered into a franchise agreement for the Money Transfer Service Scheme of M/s UAE Exchange and Financial Service Ltd.Lakshmanan. IRDA & Advisor to the Government of Andhra Pradesh as distinguished Guests. ensuring the unique achievement of not loosing not even a single man-day by way of labour unrest-a record of sort in the country has earned name and fame not only for himself but to the bank in the entire Banking Industry in India. His famous words of 'Take care of the bank. managerial competence and consistent progress in all spheres of its activities. The Bank's Centenary Celebrations were inaugurated on 27th December.Narayanan with Shri. The Bank has obtained License to function as Depository Participant under National Securities Depository Limited. V. The Bank has tied up with Export Credit & Guarantee Corporation Limited [ECGC] for marketing export credit insurance products through its branch network. widening the branch network. The enviable leadership style of Shri. 2004. The bank has introduced computerisation in the year 1990 and all the Branches have been computerised. 1990. V. Narayanan and his vision for the consistent growth of the bank in all spheres.Narayanan in an unexpected car accident near Chennai on 5th November. namely. The bank will take care of you' have made wonders in enhancing the morale and improving the productivity of the workforce. Kumbakonam under the Chairmanship of Shri.

N.PhD. Pursuant to the approvals received from Reserve Bank of India Shri.P.Sc.CAIIB has assumed charge as Non Executive Chairman of the bank and Dr. 286 BRANCHES AS ON 12-01-2012 11 . The Board of Directors with the approval of Reserve Bank of India appointed him as the Chairman & Chief Executive Officer of the Bank with effect from 31-1-2005.S.S.2011 has been appointed as the Managing Director & Chief Executive Officer of the bank with effect from 0105-2011.2006 and that of Executive President in January. Vaidyanathan [ Chartered Accountant. Shri. Kamakodi. the Board appointed Shri.S. on receipt of approval from Reserve Bank of India. B.CAIIB who joined the services of the bank as Deputy General Manager in June 2003. MBA. subsequently elevated to the rank of General Manager in March.S.Tech. P.Balasubramanian as Managing Director & Chief Executive officer of the Bank.2005.With the irreparable loss of Shri.Balasubramanian has demitted his office of Managing Director & Chief Executive Officer on 30-04-2011. V.Narayanan. In the year 2009.Balasubramanian M.Balasubramanian who had joined the bank as an Officer in 1971 and risen to the rank of Executive Director during the Chairmanship of Shri. Cost Accountant and Company Secretary] as the Non Executive Chairman of the Bank on 27-04-2009 and Shri.Vaidyanathan has demitted his office of Non-Executive Chairman of the Bank on 26-04-2011 on completion of two years and Shri. Executive Director in October. V. Narayanan. the mantle of leading the bank to make his dreams a reality fell on Shri.PGDFM.

ABSTRACT The customers who are educated have a bonding with the internet who are all using the internet banking. Also those customers who are working in abroad or out of station use the net banking facility for the funds transfer.5. The wide scope of study was given inside. A study has been done on the detailed study of customers’ about the Internet banking among the CUB customers. The customers who are all dealing with the business transaction avoid the use of internet banking even though they are well aware of it. The bank has a separate IT department in place and it is carrying out the further innovations and seeking the opportunities in the space of internet banking. An effort has been made to know what they think about internet banking The main objective of this project was to make the customer aware of the internet banking and encouraging more users of the net banking facility. The bank also focus emphasizes on the field of traditional banking by making their establishment in the rural areas. 12 .

e. withdraw money from bank so i came to know that all are doing their transactions through online i. Scope of the study As an intern. bank is in main area of this metropolitan city so I came to know that full rush hour working environment ..Rationale behind the study 6. The young students account holders mostly access their internet very often. This leads to the motive of doing the research topic in this section 13 . i am pursuing my internship from City Union Bank. Internet banking. Chennai. I found fewer of the customers come over to bank then deposit money.

To find out the awareness level of the CITY UNION BANK customers about the use of Internet Banking.g. 14 . To list the services available in Internet Banking. To find out whether there is any discrimination in relation to demographic variable (e. 7. education.7. age) 8. To check whether this new environment adapted to the customers or not 5. 9. To check out whether they know about the security of internet banking or not 6. To find the customers perception about the internet banking among CITY UNION BANK customers in exists. 3. To find out the reason for use of Internet Banking. To check out that the customers are familiar with all the features of internet banking 4. Objectives of the study The proposed study of this objective was to fulfill the following objectives: 1. 2. To find the usage of which service is maximum in Internet Banking.

services and efficiency. subscribing to other products of the bank and to transact purchase and sale of securities.1. etc.3 From the perspective of banking products and services being offered through Internet. But. etc. over a long time. 1. as an additional method of serving the customer or by new banks. payment of different bills. etc. applications for different services.1 Banks have traditionally been in the forefront of harnessing technology to improve their products.1. public networks etc and the devices include telephone. (ii) In the next level are Simple Transactional Websites which allow customers to submit their instructions.2 Broadly. It may receive and reply to customers’ queries through e-mail. (iii) The third level of Internet banking services are offered by Fully Transactional Websites which allow the customers to operate on their accounts for transfer of funds. but do not permit any fund-based transactions on their accounts. This form of banking is generally referred to as Internet Banking. Internet. although the range of products and services offered by different banks vary widely both in their content and sophistication. 1. easy access to Internet and World Wide Web (WWW). They have. queries on their account balances. who deliver banking services primarily through Internet or other electronic delivery channels as the value added services. With the popularity of PCs. hence. private networks. been using electronic and telecommunication networks for delivering a wide range of value added products and services. Personal Computers including the Automated Teller Machines. Some of these banks are known as ‘virtual’ banks or ‘Internet only’ banks and may not have any physical presence in a country despite offering different banking services. Internet banking is nothing more than traditional banking services delivered through an electronic communication backbone. the levels of banking services offered through INTERNET can be categorized in to three types: (i) The Basic Level Service is the banks’ websites which disseminate information on different products and services offered to customers and members of public in general.Background 1.1. The above forms of Internet banking services are offered by traditional banks. has compelled regulators world over to take note of this 15 . Internet is increasingly used by banks as a channel for receiving instructions and delivering their products and services to their customers. viz. The delivery channels include direct dial – up connections. in the process it has thrown open issues which have ramifications beyond what a new delivery channel would normally envisage and.

gaps in the legal / regulatory environment for electronic commerce. (i) Legal and regulatory issues. 1. A new form of competition has emerged both from the existing players and new players of the market who are not strictly banks. Information technology audit and re-engineering of operational procedures. Public Key Infrastructure (PKI) etc. to this new technology. 3. On the question of jurisdiction the issue is whether to apply the law of the area where access to Internet has been made or where the transaction has finally taken place. Allied to this is the question where the income has been generated and who should tax such income. The regulator is equally concerned about the security policy for the banking industry. 1. viz. These concerns can be broadly addressed under three broad categories. Some of the distinctive features of i-banking are: 1.. Security issues include questions of adopting internationally accepted stateofthe art minimum technology standards for access control. 5. 1. advance warning system.1. firewalls.1. heightening some of them and throwing new risk control challenges. verification of digital signature. This has raised the question of jurisdiction of law / supervisory system to which such transactions should be subjected.1. It poses a strategic risk of loss of business to those banks who do not respond in time. 2. etc. being the efficient and cost effective delivery mechanism of banking services. It removes the traditional geographical barriers as it could reach out to customers of different countries / legal jurisdiction.emerging channel. There are still no definite answers to these issues.6 The supervisory and operational issues include risk control measures. not subject to control by any single authority or group of users. validity of electronic contract. validity of electronic contract including the question of repudiation. Security of banking transactions. It has added a new dimension to different kinds of risks traditionally associated with banking. The regulator would also be concerned with whether the nature of products and services offered are within the regulatory framework and whether the transactions do 16 . security awareness and education. (ii) Security and technology issues and (iii) Supervisory and operational issues. 4. encryption / decryption ( minimum key length etc). customers’ privacy. which have all along been concerns of both bankers and supervisors have assumed different dimensions given that Internet is a public domain.4 The Regulatory and Supervisory concerns in i-banking arise mainly out of the distinctive features outlined above. Legal issues cover those relating to the jurisdiction of law.5 Security of i-banking transactions is one of the most important areas of concerns to the regulators.

querying on their accounts. for the present is not addressed as the Internet banking is still in its formative stage. A number of banks have set up banking portals allowing their customers to access facilities like obtaining information. Not adopting this new technology in time has the risk of banks getting edged out of competition. However. Several studies have pointed to the fact that the cost of delivery of banking service through Internet is several times less than the traditional delivery methods.1. which is a much bigger challenge. 1. This alone is enough reason for banks to flock to Internet and to deliver more and more of their services through Internet and as soon as possible. 1. perhaps. it may not impact monetary policy. such concern. but the systems must be constantly upgraded to changing and well-tested technologies. account based cards and digital coins.8 The world over. In such a scenario. the thrust of regulatory thinking has been to ensure that while the banks remain efficient and cost effective.not camouflage money-laundering operations. machinery and systems to manage the emerging risks. still higher level of online services will be made available. when it assumes a stage where private sector initiative produces electronic substitution of money like e-cheque.9 In India. central bankers and regulators have been addressing themselves to meet the new challenges thrown open by this form of banking. too i-banking has taken roots.1. Even countries where i-banking has been quite developed. its likely impact on monetary system can not be overlooked. its impact on monetary policy has not been significant. In India. The other aspect is to provide conducive regulatory environment for orderly growth of such form of banking. 17 . Central Banks of many countries have put in place broad regulatory framework for i-banking. It is not enough for banks to have systems in place.1. As long as Internet is used only as a medium for delivery of banking services and facilitator of normal payment transactions. etc. Soon.7 The Central Bank may have its concern about the impact of Internet banking on its monetary and credit policies. 1. they must be aware of the risks involved and have proper built-in safeguards.

For many years the Presidency banks acted as quasi-central banks. and provide cheque books. which started in 1790.6 when the customer moved on to the Internet Banking. and it drops more than half when compared to the user who looks at the Internet Banking as the alternative course of distribution channel. stop clearing facility. To provide the best credit facility and effective implementation of banking industry. The Information Technology act. which originated in the Bank of Calcutta in June 1806. The oldest bank in existence in India is the State Bank of India. as did their successors. which almost immediately became the Bank of Bengal. It changes the long customer expectations and saw the increase in various products and customer base. It is not a new format to the Indian Banking Industry as there are 21 million users used Internet Banking a year ago.8. The three banks merged in 1921 to form the Imperial Bank of India. allowing compulsory credit facility of 18% to agricultural sectors and increase in the small scale industries which leads to rise in import/export. Still the penetration of the Internet Banking awareness level is low in the rural areas and to find the banks promoting levels in the scenario of these new distribution channels. which. The cost of banks is reduced to Re.2% of total population who uses the internet facility. The introduction of electronic forms in the banking industry changes the face and operation style of the banking industry. After the nationalization the banking industry saw an enormous growth which includes the increase in the deposit amount. The main motive of this study is to understand the customer attitudes towards the Internet Banking and the expectation level of different customers who uses the net banking. The Internet Banking or online banking provides the customers to access his account. all three of which were established under charters from the British East India Company. It is a win-win situation for all. 14 banks were nationalised in the year 1969. The Rangarajan committee of 1985 ensured that banks have to be computerized. demand draft at the convenience of sitting at the home. This was one of the three presidency banks. 18 . The history of Internet Banking states back to the early 1980’s. 2000 was enacted to bring to provide the legal recognition of electronic transactions and other means of e-commerce. both are now defunct.1 from Rs. became the State Bank of India in 1955. HISTORY OF THE STUDY Banking in India originated in the last decades of the 18th century. Accessing the need for promotion and highlighting the Internet Banking to make a vast entry into the customer segments. The first banks were The General Bank of India. the other two being the Bank of Bombay and the Bank of Madras. transfer funds. and Bank of Hindustan. which started in 1786. India has 10. As per IWS. upon India's independence. This facility is available for 24x7 hours.

5. anywhere’ banking. 2. Nyangosi et al. They expect that a large sophisticated and highly competitive internet banking market will develop in future. BANKERS’ PERSPECTIVES… Dr. 4.. increased customer loyalty. Review of literature 1. Long & McMellon. in its striking transformation. . Nevertheless. Indian banks offering online services still have a long way to go. The overall result indicates that customers in both countries have developed a positive attitude and they give much importance to the emergence of e-banking. The study highlighted the trends of e-banking indicators in both countries. In fact. 2001. Rao et al.9. (2003) provide a theoretical analysis of Internet banking in India and found that as compared to banks abroad. Himani Sharma 75 internet banking activities is by larger banks. it is still in its evolutionary stage. (2009) collected customers' opinions regarding the importance of e-Banking and the adoption levels of different e-Banking technologies in India and Kenya. improved customer access. This characterizes the early adoption phase where the banking industry. I. Mookerji (1998) explored that internet banking is fast becoming popular in India. there has to be sufficient number of users and the sufficient infrastructure in place. member institutions rated security as the most important concern of online banking.T. earlier researchers (Reil etal. But in a survey conducted by the online banking association. According to him. An extensive study conducted in 2001 by the Consumer Bankers Association indicates that Internet banking usage remained stagnant from 1996 to 1998. attracting new customers are the primary drivers of internet banking. with less than 10% of the market utilizing the service. has introduced new business paradigms and is increasingly playing a significant role in improving the services in the banking industry. 2004) point out that automated service is still at its infancy stage and there is no generally accepted theoretical conceptualization of automated service quality. offering of more services. 3. has embarked on an era of ‘anytime. past performance and higher branch network. 19 . For online banking to reach a critical mass. Mishra (2005) in his paper explained the advantages and the security concerns about internet banking. banks with higher involvement in off-balance sheet activities.

10. professionals. Personal Interaction shall be held with the Bank executives will also be held on various aspects of the research. it is the Convenience Sampling. Chennai Branch of City Union Bank. Methods of Data Collection: Survey Tools for data collection: Information from Correspondents through Questionnaire. As geographical area to be covered is the T.Nagar. The consideration will be given to respondents to include all the categories of customers like people of various age groups and educational qualifications. T-Nagar branch customer 180 respondents members in Target population It is proposed to have the sample size of 180 respondents of customers who uses ‘Internet Banking’ and its features. Research Methodology Hypothesis Case I: H0: No difference among the customers on the basis of age H1: Difference among the customers on the basis of age Case II: H0: No difference among the customers on the basis of education H1: Difference among the customers on the basis of education Research Design: Descriptive Research to Exploratory Research Sample size and design: Target population: Sampling Unit: Sampling Size: Sampling Frame: CUB customers’ using internet banking CUB. Direct Personal Interview and Mailed Questionnaire 20 . A well structured questionnaire shall be designed and distributed to the target audience for collection of primary data. working and non-working males and females. students and business class.

iii. i.05. or questionnaire means between 15.2012 the period and mode of collecting data shall be reviewed suitably at the appropriate times so as to make it meaningful and closest possible to the objectives set for the research study.2012 to 15.06. To know the interests and the awareness level of the customer of the Internet Banking To give a clear cut idea of what is Internet Banking to the customers mainly associated with a job To know what can be done in order to raise the level of Internet Banking in the banking sector To have a comparison between the bullock cart banking and the modern age banking industry 21 .Period: The primary data is proposed to be collected through various means of communications. iv. Expected Contribution from the study: i.e. ii. in person.

QUESTIONNAIRE CUSTOMERS’ ATTITUDE TOWARDS INTERNET BANKING IN CITY UNION BANK 1..g. How frequently do you visit your bank branch per month?  Less than 1  1 to 3 times  3 to 8 times  8 to 12 times  over 12 times 22 . Please mention your gender  Male  Female 3. BANKING AND ACTURIAL SCIENCE 11. Are you a customer of CUB?  Yes  No 4. stock. Have you performed any of the following activities on-line? (Please check all that apply)  Tax filing  Purchased/sold financial product (e. How long have you been using the Internet?  Less than 1 month  1 to 6 months  6 to 12 months  More than 1 year 7.AMITY SCHOOL OF INSURANCE. What is your age?  10-20 years  21-25 years  26-30 years  30-40 years  Above 40 years 5. Please mention your name_____________________ Please encircle the following 2. bonds)  Neither of these 8. Please mention your education level  Intermediate  10th pass  12th pass  Under Graduate  Post Graduate 6.

What is the main reason that you typically visit your bank branch (please choose the single most important reason)?  to make a deposit  to get advice for investment options  to inquire about a balance  to withdraw cash  other 11. What are the most important reasons you opened an prioritize the following list in the order of importance. Are you using any of the following services? ATM Services □yes □no Anywhere banking □yes □no Internet Banking □yes □no If yes. How frequently do you use an Automated Teller Machine (ATM) per month?  Less than 1  1 to 3 times  3 to 8 times  8 to 12 times  over 12 times 10. Have you purchased any product on the Internet?  Yes  No Please tick the following 12.9. Services EXTREMELY SATISFIED SOME SATISFIED WHAT SATISFIED Convenience □ □ □ (24 hours service. please rate your satisfaction level Services EXTREMELY SATISFIED SOME SATISFIED WHAT SATISFIED ATM Services □ □ □ ANYWHERE □ □ □ Banking Internet □ □ □ Banking 13. anywhere connectivity) Better rates □ Safe and □ secure □ □ □ □ DIS SATISFIED □ □ □ EXTREMELY DIS SATISFIED □ □ □ Internet bank account? (Please DIS SATISFIED □ EXTREMELY DIS SATISFIED □ □ □ □ □ 23 .

What was the single most important reason that you chose this particular bank as your Internet bank? ( please choose one)?  I have a traditional bank account with the same bank  The brand name of the bank  The excellent service offered by this bank  Others  Not Applicable All respondents are requested to answer the following question: 16. WILL YOU BE INTERESTED IN REFERRING ANY OF YOUR FRIENDS TO OUR BANK □YES □NO 24 .Low service □ charge Easy to □ maintain my banking transaction activity □ □ □ □ □ □ □ □ 14. What banking services do you use which your Internet bank offers? (Please check all you are currently using and tick)?  Seeking product and rate information  Calculate loan payment information  Download loan applications  Download personal bank transaction activity  Check balances on-line  Apply for consumer loans or credit cards online  Inter-account transfers  On-line bill payments  Others  Not Applicable 15.

Once the results are arrived. opportunities and threats of an organization. The method of SWOT analysis is to take the information from an environmental analysis and separate it into internal (strengths and weaknesses) and external issues (opportunities and threats). SWOT ANALYSIS This is a tool that identifies the strengths. It will help to further enhance it. weaknesses. Strengths             Convenience Paper less work Wireless transactions Information around 24x7 days Safe and security Accuracy of banking transaction Easy to manage Reduced costs Very wide coverage area Better B2B relationships Integrated customer base Multi-functional jobs Weakness     Customer attitude feels that this is unsecured Ease of cheat Hackers Chance of unauthorized data access 25 . it gives us to analyze the detailed study of project to be taken for an effective action of study. The SWOT analysis of internet banking will help to get a clear cut idea about customer attitude.12.

     Continual changes of technology Reputational risk due to poor functioning of competitors Round the clock. technical service should be active More organizational commitment needed Cost to develop and upgrade Opportunities          Increased customer security through secured transactions Increase the image of the brand and bank Work from home Increase the brand value Global expansion Being competitive with global banks Up-to date information about new products Outsourcing of jobs Vast going of Internet usage including mobile phones Threats       Fake mails in the name of the bank from hackers Security risk of hacking systems Phishing alerts Chance of more cross-border transaction that increases risk Legal risks Implementation of RBI guidelines with respect to changing demands 26 .

GENDER 45% 55. PIE CHART REPRESENTATIONS OF QUESTIONNAIRE 1.00% male female This pie chart shows that the Gender-wise percentage of participation in the questionnaire filling 27 .13.

67% Due to my topic i.2. customers’ attitude towards internet banking in CITY UNION BANK So most probably I have collected many of the responses from the customers of the CUB hence the Customers Of CUB is high in showing percentage 28 .CUSTOMERS OF CUB 3.e..33% yes no 96.

3. 29 .11% 28.AGE CRITERIA 0% 22.77% 22.33% Above 40 years This shows that all the categories of age except 10-20 years all are aware of Internet banking and all are properly utilising this facility.77% 10-20 years 21-25 years 26-30 years 30-40 years 26. All professionals don’t want come to The bank so they do online.

The graduate are giving more responses 30 .4.11% This education level shows that the highly educated people are more responsible in Filling the responses .10% 3.80% 28.30% 15.55% intermediate 10th pass 12th pass under graduate post graduate 51.EDUCATION LEVEL 1.

50% 1-6 months 6-12 months 70.00% less than 1 month 10.5.INTERNET USAGE 8. 31 .50% more than 1 year The responses shows that these days internet users are so many in our country and they Are using internet more than 1 year.89% 10.

stock.55% tax filing purchased/sold financial product(eg.40% 15% The responses shows that the percentage of tax filing is good when comparing the purchase And sold of financial products 32 ..6.ACTIVITIES ONLINE 30.bonds) neither of these 54.

70% 3-8 times 8-12 times over 12 times 20% The visit of bank per month is less than 1 these days because customers know their Convenience of Internet Banking.7. 33 .50% 23.70% 17.VISIT BANK PER MONTH 10.80% less than 1 1-3 times 27.

30% 22.8.30% less than 1-3 times 3-8 times 8-12 times over 12 times 56% These days usage of ATM per month is more than visit to the bank 34 .ATM USAGE PER MONTH 0% 8.70% 13.

60% to get advice for investment options to inquire about the balance to withdraw cash others 30% 21.20% to make a deposit 15% 31.MAIN REASON TO VISIT YOUR BANK BRANCH 2.9.11% The main reasons to visit the bank branch is to make a deposit and to get advice for the Investment options because now a days also customer know the trust and clarification. 35 .

50% Now a days the online products purchasing has improved a lot because most of the People are using online shopping through internet transaction but still some of the customers Are not interested in this. 36 .44% yes no 80.ONLINE PRODUCTS PURCHASE 19.10.

11. 37 .ATM SERVICES yes no 100% The ATM services are utilized by each and every customer that is why the questionnaire Shows that cent percent result.

70% 49% satisfied some what satisfied dis satisfied extremely dissatisfied The ATM services shows the satisfaction level as extremely satisfied and satisfied this shows The service quality.ATM SERVICES SATISFACTION LEVEL 1.10% extremely satisfied 47.12.60% 1. 38 .

13.11% The anywhere banking is also used by some how good percentage level of customers.ANYWHERE BANKING 38.89% yes no 61. 39 .

77% extremely dissatisfied The anywhere banking’s satisfaction level shows that dis satisfied level is at good level when Compared to other options.77% 22.00% 24.50% extremely satisfied satisfied some what satisfied dis satisfied 22.14. 40 .ANYWHERE BANKING SATISFACTION LEVEL 30.

INTERNET BANKING 17.15.77% The Internet banking users are now a days so many because of the educated customers And internet users only. 41 .78% yes no 82.

66% satisfied some what satisfied dis satisfied extremely dissatisfied 26.90% extremely satisfied 43.16.33% 11.INTERNET BANKING SATISFACTION LEVEL 18.11% The internet banking satisfaction level shows that the level extremely satisfied. 42 .

88% extremely dissatisfied The convenience shows that extremely satisfied and satisfied level of the customers Like 24*7 hours of service and anywhere connectivity.22% extremely satisfied 43.33% satisfied some what satisfied dis satisfied 43. anywhere connectivity) 5.55% 7.Convenience (24 hours service.17. 43 .

33% satisfied some what satisfied dis satisfied extremely dissatisfied 29.Better rates 10.23% 23.00% extremely satisfied 37.44% The better rates shows that the level of satisfaction good. 44 .18.

Safe and secure 7. 45 .19.88% 53.77% extremely satisfied satisfied some what satisfied 38.33% dis satisfied extremely dissatisfied The safe and security level of the customer upto their attitude and their knowledge is Extremely satisfied and satisfied.

20.66% 22.77% 32.Low service charge 1.22% extremely dissatisfied Some what satisfied is the level of satisfaction in low service charge. 46 .22% extremely satisfied satisfied some what satisfied dis satisfied 22.11% 21.

00% 7.55% extremely satisfied satisfied some what satisfied dis satisfied 40.Easy to maintain my banking transaction activity 1.11% 40.00% extremely dissatisfied Extremely satisfied and satisfied is the high level of satisfaction in ease of maintaining Banking transaction activity in internet.22% 11. 47 .21.

22% Online/apply for consumer loans or credit cards online the service used by many of the customers calculate loan payment informatin/check balances check balance online online/apply for /inter account consumer loans or credit transfers/online bill cards online /online bill payments The seeking product and rate information/download loan application/check balances payments 48 .88% 6.44% 2.banking services do you use which your Internet bank offers? 19.22.00% download loan application.33% 28.66% 14.apply for consumer loan /credit cards online/inter-account transfers seeking product and rate information/download loan application/check balances online/apply for consumer loans or credit cards online 13.44% 15.

But the services and brand name also stands.00% 19.23.44% The excellent services offered by this bank others 17.22% not applicable Because they have the traditional bank account in the same bank so that is the reason for the Chose of internet bank.00% 13.33% I have a traditional bank account with the same bank The brand name of bank 45. 49 .single reason that you chose this bank as your internet bank 5.

00% Most of the customers are interested in referring their friends to cub bank.24. 50 .00% yes no 95.Will you be interested in referring any of your friends to our bank? 5.

CHI SQUARE TEST Hypothesis Testing Case I: H0: No difference among the customers on the basis of education H1: Difference among the customers on the basis of education Ca se II: H0: No difference among the customers on the basis of age H1: Difference among the customers on the basis of age nonusers 0 4 9 5 15 33 NONUSERS 2 4 16 6 5 33 age criteria 10-20 years 21-25 years 26-30 years 30-40 years above 40 years TOTAL users 0 37 42 42 26 147 TOTAL 0 41 51 47 41 180 EDUCATION LEVEL Intermediate 10th pass 12th pass Under Graduate Post Graduate TOTAL USERS 0 3 12 86 46 147 TOTAL 2 7 28 92 51 180 Chi-square: The chi-square statistic compares observed values with predicted (or expected) values computed from a statistical model and hence evaluates the `goodness of fit' model. 51 .14. It is also known as Pearson's chi-squared test.

49 The critical value is less than the calculated value.65 9.52 147 33 Total 0 41 51 47 41 180 Calculation Observed – Expected 0 3. 52 .1225 13.0131 1.1044 55. Therefore.62 -7. we reject NULL Hypothesis and accept Alternative hypothesis.35 -3.61 7.35 38. there is Difference among the customers on the basis of age who are using the internet banking.5136 0.0321 55.95 (O-E)2/E 0 0.44 12. So.35 3.52 .865921 Degree of Freedom (R-1)(C-1) = (5-1) (2-1) = 4 Critical Value of chi-square @ 5% significance: 9.61 33.0321 0.51 41.38 8.3904 0.37008 0.3414 1.002941 0.48 7.61 .48 TOTAL (O-E)2 0 12.6712 0 1.9504 0 13.48 0 -3.48 7.1225 13.H0: No difference among the customers on the basis of age H1: Difference among the customers on the basis of age Observed Frequency Expected Frequency 10-20 years 21-25 years 26-30 years 30-40 years Above 40 years Total Users Non-users 0 0 37 4 42 9 42 42 5 26 15 147 33 Total 0 41 51 47 41 180 10-20 years 21-25 years 26-30 years 30-40 years Above 40 years Total Users Non-users 0 0 33.5136 7.

35 TOTAL Degree of freedom (R-1)(C-1) = (5-1) (2-1) = 4 Critical Value of chi-square @ 5% significance: 9.666 7. There is difference among the customers on the basis of education level.019 118.36 1.133 16.290 5.166 1.15 118.4543 7.92 2. Therefore.023 55.004 2.572 0.15 18.65 147 Non-users .68 7.716 22.H0: No difference among the customers on the basis of EDUCATION H1: Difference among the customers on the basis of EDUCATION Observed Frequency Users 0 3 12 86 46 147 Non-users 2 4 16 6 5 33 Total 2 7 28 92 51 180 Expected Frequency Users 1.283 5.633 1.717 10.15 18.382 118.87 9.87 4.87 -4.49 The critical value is less than calculated value.633 2.006 7. we reject the NULL Hypothesis.633 5.13 41.87 10.867 -10.923 (O-E)2/E 1.716 -10.35 1. (O-E)2 2.87 75.753 23.376 118.3713 53 .35 33 Total 2 7 28 92 51 180 Intermediate 10th pass 12th pass Undergraduate Post Graduate Total Intermediate 10th pass 12th pass Undergraduate Post Graduate Total Calculation Observed – Expected -1.64 2.47 5.

B. Research design  Type of research design  Information need  Data collection from secondary sources  Data collection from primary sources  Scaling techniques  Questionnaire development and pretesting  Sampling Design  Sampling techniques H. Data Analysis  Methodology  Plan of Data Analysis I. Approach to the Problem G. Conclusions and Recommendations L. Tentative Chapter Scheme Title Page. Declaration Certificate Table of Contents Executive Summary  Major Findings  Conclusions  Recommendations E.customers’ attitude towards Internet Banking in City Union Bank A. Introduction  History of the problem  Background of the problem  Statement of the Problem F. Chi square Test J. C. Results K. Appendix  Questionnaires and forms  Statistical output  Lists 54 .15. D.

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