CHAPTER-1

INTRODUCTION

1.1 Introduction
1.2 Measuring customer’s satisfaction in banking industry
1.3 Need to measure customer’s satisfaction
1.4 Development of internet banking in India
1.5 Status of internet banking in India
1.6 Service quality in context of internet banking
1.7 Customer’s perspective
1.8 Provider’s perspective
1.9 Objectives of the study

1
1.1 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

2
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

1.2 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.

1.3 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

3
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.

1.4 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 1985-
1989. 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.

1.5 STATUS OF INTERNET BANKING IN INDIA

4
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.

1.6 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

1.7 CUSTOMERS’ PERSPECTIVE

5
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 factors-
primarily, 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.

1.8 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.

1.9 OBJECTIVES OF THE STUDY

This study is undertaken with the following objectives

1 .To know the respondents preference towards internet banking . .

2. To analyze the factors which influence the respondents to make net banking through HDFC nd
SBI bank?

3. To know the satisfaction level of respondents regarding net banking in HDFC and SBI bank.

4. To offer suggestions and recommendation for further improvement of net banking services in
HDFC and SBI bank

6
CHAPTER-2
COMPANY PROFILE

2.1 State Bank of India

2.2 HDFC

7
2.1 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

8
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.

9
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

10
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, SBI-
Indore 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 SUBSIDARIES
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.

11
2.2 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.

12
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 & CENTURIAN 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

13
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

14
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.

15
CHAPTER 3

RESEARCH

METHODOLOGY

16
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:-

1. Meaning of research.
2. Problem statement
3. Research design.
4. Sample design.
5. Data collection.
6. 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

17
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.

18
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.

5.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:

19
 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, organizational 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:

20
 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.

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.

21
CHAPTER-4

DATA ANALYSIS

AND

INTERPRETATION

22
Q1. Age details of the respondents

AGE RESPONDENTS

BELOW 20 12

20-30 YEARS 55

31-40 YEARS 17

ABOVE 40 YEARS 16

RESPONDENTS

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

23
Q.2 Type of customers.

PROFESSION HDFC SBI

BUSINNESMAN 20 16
SELF EMPLOYED 23 18
WORKING 45 23
PROFESSIONAL

GOVT. SERVICE 12 43

50

45

40

35

30

25 HDFC
SBI
20

15

10

0
A B C D

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

24
Q3.Income level
INCOME RESPONDENTS

BELOW 50000 27

50000-100000 10

100000-500000 23

ABOVE 500000 40

RESPONDENTS

A
B
C
D

25
Q.4 Source of communication (From where customers get the Information about bank.

SOURCE RESPONSE
ADVERTISEMENT 30
FAMILY 35
FRIEND 25
OTHERS 10

Column1

ADVERTISEMENT
FAMILY
FRIEND
OTHERS

Inrerpretation- As per the study the family members are the main sources of
c o m m u n i c a t io n a bo u t b a nk a n d a d v e r t i s e m e nt i s s e c o nd i m p o r t a nt s o u r c e .

26
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 majorit y of the respondents
that is 55% were a w a r e o f t h e n e t b a n k i n g s e r v i c e p r o v i d e d b y H D F C
B a n k w h i l e 4 5 % o f t h e respondents were not aware of the same service.

27
Q6. Net Banking services of HDFC Bank availed.

SERVICES HDFC SBI

VIEW A/C BALANCES 34 31
AND STATEMENTS
TRANSFER FUNDS 32 23
CREATE FIXED 9 13
DEPOSIT ONLINE
REQUEST A DEMAND 5 10
DRAFT
PAY BILLS 20 23

40

35

30

25

20 HDFC
SBI
15

10

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.

28
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

25 HDFC
SBI
20

15

10

0
A B C D

Interpretation - I t w a s fo u nd t h a t t he m a jo r i t y o f t he r e s p o nd e nt s t h a t i s 4 5
% u s e d t he N e t B a nk 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 respect ively.

29
Q8. Difficulties faced while using the Net Banking service of HDFC Bank.
DIFFICULTIES HDFC SBI
LOGGING IN TO YOU’RE A/C 20 25
MAKING TRANSACTIONS 27 34
SAFETY ISSUES 40 18
UNABLE TO UNDERSTAND 8 16
WEBPAGES
CHANGING OF PIN AND 5 7
PASSWORD

45

40

35

30

25
HDFC
20 SBI
15

10

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 difficult y that they faced while using the Net Banking service in
hdfc bank, followed by34% of the respondents who felt that making transact ions
with the bank through Net Banking 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 n k a n d 7 %
o f t he r e s p o nd e nt s f e lt t ha t c h a ng i n g t he P I N a nd P a s s w o r d regularly was
difficult in SBI bank.

30
Q9. Reasons due which Net Banking service is not popularly used.

REASONS HDFC SBI

NET BANKING WEBPAGES ARE 23 29
CONFUSING
USE OF COMPUTER OR 19 12
INTERNET IS DIFFICULT
NETBANKING IS NOT SECURED 34 36
NETBANKING OFFERS NO 24 23
RECEIPTS NO PAYMENTS

Series 1
3
Series 2
Series 3
2

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.

31
 CHAPTER-5

FINDINGS AND CONCLUSION

5.1 Findings

5.2 Conclusions

32
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,etc

3. A study of the factors, influencing the usage was made by listing out various factors such as
all time availability, ease of use, nearness etc., and amongst the various factors all time
availability is ranked as the major motivating factor, followed by ease of use, direct access,
nearness in decreasing 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.

33
CONCLUSIONS
1. Customers were not fully aware of the services.. Therefore Banks should try to give
some more information to its existing customers.

2. The main advantage of E-banking is an increase in customer satisfaction because customers do

not have to go the branches in order to access their accounts, make withdrawals and deposits

3. Most of the customers of HDFC bank face security problems while using internet banking
than the customers of SBI bank.

4. HDFC and SBI Bank should take necessary steps to create awareness among people about the
advantages of e-banking and internet banking services available in the banks

5. Most of the customers of SBI bank face technical difficulties while using internet banking like
sometimes the bank’s website goes down..

34
BIBLIOGRAPHY
 Reserve Bank of India (RBI), Trend and Progress of Banking in India 2008,
2009, 2010.2011 and 2012.
 Last five years Annual reports of all selected banks.
 www.encyclopedia.com
 Aggarwal, B.P.2005. Commercial Banking in India ,New Delhi, Classical
Publishing Company.
 Chopra, K (2005) Managing Profitability and Productivity in Public Sector
Banking, ABS publications, Jalandhar.
 Kumar, Ashish, (2011): “Analysis of Efficiency of Banks in a Developing
Economy: A Case Study of India”, International Journal of Computer
Science and Management Studies, Vol. 11 (3), Pp: 17-27.

Das, S.K., (2010): “Financial Liberalization and Banking Sector Efficiency:

The Indian Experience”, 12th Money and Finance Conference, 11-12th
March IGIDR, Mumbai (India).
 www.economictimes.com
 Kajal chaudhary and Monika Sharma, “ Performance of Indian Public
Sector Banks and Private Sector Banks : A Comparative study, “
International Journal of Innovation, Management and Technology”
vol.2, no. 3, pp. 249-256, 2011.

 International Journal of Management Prudence, volume 4, issue 1,

Performance of selected public sector Banks.

35
 ANNEXURE
QUESTIONAIRE

Q1. Age details of the respondents

AGE RESPONDENTS

BELOW 20

20-30 YEARS

31-40 YEARS

ABOVE 40 YEARS

Q.2 Type of customers.

PROFESSION HDFC SBI

BUSINNESMAN

SELF EMPLOYED

WORKING PROFESSIONAL

GOVT. SERVICE

Q3.Income level

INCOME RESPONDENTS

BELOW 50000

50000-100000

36
100000-500000

ABOVE 500000

Q.4 Source of communication (From where customers get the Information about bank.

SOURCE RESPONSE
ADVERTISEMENT
FAMILY
FRIEND
OTHERS

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

Q6. Net Banking services of HDFC Bank availed.

SERVICES HDFC SBI

VIEW A/C BALANCES AND
STATEMENTS

TRANSFER FUNDS
CREATE FIXED DEPOSIT
ONLINE

REQUEST A DEMAND
DRAFT

PAY BILLS

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

FREQUENCY HDFC SBI

LESS THAN ONCE

1-5 TIMES

5-10 TIMES

37
MORE THAN 10 TIMES

Q8. Difficulties faced while using the Net Banking service of HDFC Bank.

DIFFICULTIES HDFC SBI

LOGGING IN TO YOU’RE A/C
MAKING TRANSACTIONS
SAFETY ISSUES
UNABLE TO UNDERSTAND
WEBPAGES
CHANGING OF PIN AND
PASSWORD

Q9. Reasons due to which Net Banking service is not popularly used.

REASONS HDFC SBI

NET BANKING
WEBPAGES ARE
CONFUSING
USE OF COMPUTER OR
INTERNET IS DIFFICULT
NETBANKING IS NOT
SECURED
NETBANKING OFFERS NO
RECEIPTS NO PAYMENTS

38