CHAPTER :1

Introduction

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 A STUDY OF E –BANKING SERVICES PROVIDED BY
SBI TO THEIR CUSTOMERS
EXECUTIVE SUMMARY
E-banking is fast becoming a norm in the developed world, and is being implemented by
many banks in developing economies around the globe. The main reason behind this success
is the numerous benefits it can provide, both to the banks and to customers of financial
services. For banks, it can provide a cost effective way of conducting business and enriching
relationship with customers by offering superior services, and innovative products which may
be customized to individual needs. For customers it can provide a greater choice in terms of
the channels they can use to conduct their business, and convenience in terms of when and
where they can use e- banking.
Over the last decade India has been one of the fastest adopters of information technology,
particularly because of its capability to provide software solution to organiz ationsaround
theworld. This capability has provided a tremendous impetuous to the domestic banking
industry in India to deploy the latest in technology, particularly in the Internet banking and e-
commerce areas. Technology is playing a major role in increasing the efficiency, courtesy
and speed of customer service. An Online Banking user is expected to perform transactions
online such as Checking account balance and transaction history, Paying bills, Transferring
funds between accounts, Requesting credit card advances, ordering checks, Managing
investments and stocks trading.
From a bank‟s perspective, using the internet is more efficient than using other distribution
mediums because banks are looking for an increased customer base. Moreover Internet
delivery offers customized service to suit the needs and the likes of each user. Mass
customization happens effectively through Online Banking. It reduces cost and replaces time
spent on routine errands with spending time on business errands. Online Banking means less
staff members, smaller infrastructure demands, compared with other banking channels. From
the customers‟ perspective, Online Banking provides a convenient and effective way to
manage finances that is easily accessible 24 hours a day, seven days a week. In addition
information is up to date. Nevertheless Online Banking has disadvantages for banks like how
to work the technology, set-up cost, legal issues, and lack of personal contact with customers.
And for customers there are security and privacy issue.
 THE ORIGIN OF THE STATE BANK OF INDIA
The Imperial Bank of India came into existence on 27 January 1921 when the three
Presidency Banks of colonial India, were reorganized and amalgamated to form a single
banking entity. The three Presidency banks were the Bank of Bengal, established on 2 June
1806, the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras
(incorporated on 1 July 1843).
SBI LOGO:

The logo of the State Bank of India is a blue circle with a small cut in the bottom that depicts
perfection and the small man the common man - being the center of the bank's business. The
logo came from National Institute of Design (NID), Ahmedabad and it was inspired by
Kankaria Lake, Ahmedabad.
Slogans: "PURE BANKING, NOTHING ELSE", "WITH YOU - ALL THE WAY", "A
BANK OF THE COMMON MAN", "THE BANKER TO EVERY INDIAN", "THE
NATION BANKS ON US".

The State bank Group comprises, State bank of India and its seven associates’ as fallows
State Bank of Bikaner and Jaipur

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State Bank of Hyderabad

State Bank of Indore

State Bank of Mysore

State Bank of Patiala

State Bank of Saurashtra

State Bank of Travancore

SBI-MUMBAI HEAD OFFICE

 DETAILS OF STATE BANK OF INDIA
Pursuant to the provisions of the State Bank of India Act (1955), the Reserve Bank of India,
which is India's central bank, acquired a controlling interest in the Imperial Bank of India.
On 30 April 1955, the Imperial Bank of India became the State Bank of India. The
Government of India recently acquired the Reserve Bank of India's stake in State Bank of
India so as to remove any conflict of interest because the Reserve Bank Of India is the
country's banking regulatory authority.
In 1959, the government passed the State Bank of India (Subsidiary Banks) Act, enabling the
State Bank of India to take over eight former state-associated banks as its subsidiaries. On 13
September 2008, the State Bank of Saurashtra, one of its associate banks, merged with the
State Bank of India. In 1951, when the First Five Year Plan was launched, the development
of rural India was given the highest priority. The commercial banks of the country including
the Imperial Bank of India had till then confined their operations to the urban sector and were
not equipped to respond to the emergent needs of economic regeneration of the rural areas.
Therefore, in order to serve the economy in general and the rural sector in particular, the All
India Rural Credit Survey Committee recommended the creation of a state- partnered and
state-sponsored bank by taking over the Imperial Bank of India, and integrating with it, the
former state-owned or state-associate banks. An act was accordingly passed in Parliament in
May 1955 and the State Bank of India was constituted on 1st July 1955. More than a quarter
of the resources of the Indian banking system thus passed under the direct control of the
State. Later, the State Bank of India (Subsidiary Banks) Act was passed in 1959, enabling the
State Bank of India to take over eight former State-associated banks as its subsidiaries (later
named Associates).
The State Bank of India was thus born with a new sense of social purpose aided by the 480
offices comprising branches, sub offices and three Local Head Offices inherited from the
Imperial Bank. The concept of banking as mere repositories of the community’s savings and
lenders to creditworthy parties was soon to give way to the concept of purposeful banking
subserving the growing and diversified financial needs of planned economic development.
The State Bank of India was destined to act as the pacesetter in this respect and lead the
Indian banking system into the exciting field of national development.

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 PROFILE OF STATE BANK OF INDIA
The origin of the State Bank Of India goes back to the first decade of the nineteenth century
with the establishment of the Bank of Calcutta in Calcutta on 2 nd June 1806. Three years later
the bank received its charter and was re-designed as the Bank of Bengal (2nd January 1809).
A unique institution, it was the first joint-stock bank of British India sponsored by the
Government of Bengal. The Bank of Bombay (15th April 1840) and the Bank of Madras (1st
July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern
banking in India till their amalgamation as the Imperial Bank of India on 27 th January 1921.
Primarily Anglo-Indian creations, the three presidency banks came into existence either as a
result of the compulsions of imperial finance or by the felt needs of local European
commerce and were not imposed from outside in an arbitrary manner to modernize India’s
economy. Their evolution was, however, shaped by ideas circulated from similar
developments in Europe and England, and was influenced by changes occurring in the
structure of both the local trading environment and those in the relations of the Indian
economy to the economy of Europe and the Global Economic Framework.
New phase of Indian Banking System with the advent of Indian Financial & Banking Sector
Reforms after 1991.Government took major steps in this Indian Banking Sector Reforms
after independence. In 1955, Government nationalized Imperial Bank of India with extensive
banking facilities on a large scale especially in rural and semi-urban areas. It formed State
Bank of India to act as the principal agent of Reserve Bank of India and to handle banking
transactions of the Union and State Governments all over the country.
Seven banks forming subsidiary of State Bank of India were nationalized in 1960 on 19th
July, 1969, major process of nationalization was carried out. It was the effort of the then
Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country were
nationalized of its employees
.
Funding National Development in the 20th Century
The rapid growth of the presidency banks came to an abrupt halt in 1876, when a new piece
of legislation, the Presidency Banks Act, placed all three banks under a common charter--and
a common set of restrictions. As part of the legislation, the British Imperial Government gave
up its ownership stakes in the banks, although they continued to provide a number of services
to the Government, and retained some of the Government's Treasury Capital.
The majority of that, however, was transferred to the three newly created Reserve Treasuries,
located in Calcutta, Bombay, and Madras. The Reserve Treasuries continued to lend capital
to the presidency banks, but on a more restrictive basis. The minimum balance now
guaranteed under the Presidency Banks Act was applicable only to the banks' central offices.
With branch offices no longer guaranteed a minimum balance backed by Government funds,
the banks ended development of their networks. Only the Bank of Madras continued to grow
for some time, supplied as it was by the influx of capital from development of trade among
the region's port cities.

The loss of the Government-Backed balances was soon compensated by India's rapid
economic development at the end of the 19th century. The building of a national railroad
network launched the country into a new era, seeing the rise of cash-crop farming, a mining
industry, and widespread industrial development. The three presidency banks took active
roles in financing this development. The banks also extended their range of services and
operations, although for the time being was excluded from the foreign exchange market.12
By the beginning of the 20th century, India's banking industry boasted a host of new arrivals,
and particularly foreign banks authorized to exchange currency. The growth of the banking
sector, and the development of indigenous banks, in turn created a need for a larger "Bankers'
Bank." At the same time, the Indian Government had outgrown its colonial background and
now required a more centralized banking institution. These factors led to the decision to
merge the three presidency banks into a new, single and centralized banking institution, the
Imperial Bank of India.

Created in 1921, the Imperial Bank of India appeared to inaugurate a new era in India's
history--culminating in its declaration of independence from the British Empire. The Imperial
Bank took on the role of central bank for the Indian Government, while acting as a bankers'
bank for the growing Indian Banking Sector. At the same time, the Imperial Bank, which,
despite its role in the Government Financial Structure remained independent of the
Government, carried on its own commercial banking operations.

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In 1926, a Government Commission recommended the creation of a true central bank. While
some proposed converting the Imperial Bank into a central banking organization for the
country, the commission rejected this idea and instead recommended that the Imperial Bank
be transformed into a purely commercial banking institution. The government took up the
commission's recommendations, drafting a new bill in 1927. Passage of the new legislation
did not occur until 1935, however, with the creation of the Reserve Bank of India. That bank
took over all central banking functions. 13

Competitors in the 21st Century

State Bank Of India was allowed to dominate the Indian banking sector for more than two
decades. In the early 1990s, the Indian Government kicked off a series of reforms aimed at
deregulating the banking and financial industries. State Bank Of India was now forced to
brace itself for the arrival of a new wave of competitors eager to enter the fast-growing Indian
economy's commercial banking sector. Yet years as a Government-run institution had left
State Bank Of India bloated--the civil- servant status of its employees had encouraged its
payroll to swell to more than 230,000. The bureaucratic nature of the bank's management left
little room for personal initiative, nor incentive for controlling costs.

International presence
The Israeli branch of the State Bank of India located in Ramat Gan. As of 31St December
2009, the bank had 151 overseas offices spread over 32 countries. It has branches of the
parent in Colombo, Dhaka, Frankfurt, Hong Kong, Tehran, Johannesburg, London, Los
Angeles, Male in the Maldives, Muscat, New York, Osaka, Sydney and Tokyo. It has
offshore banking units in the Bahamas, Bahrain and Singapore, and representative offices
in Bhutan and Cape Town. It also has an ADB in Boston, USA. State Bank Of India
operates several foreign subsidiaries or affiliates. In 1990, it established an offshore bank:
State Bank of India (Mauritius).

In 1982, the bank established a subsidiary, State Bank of India (California), which now has
nine branches - eight branches in the state of California and one in Washington, D.C. The 9th
branch was opened in Tustin, California on 7th March, 2010. The other seven branches in
California are located in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, San Diego and
Bakersfield.
The Canadian subsidiary, State Bank of India (Canada) also dates to 1982. It has seven
branches, four in the Toronto area and three in British Columbia.
In Nigeria, State Bank Of India 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.15.
In Nepal, State Bank Of India owns 50% of Nepal State Bank Of India Bank, which has
branches throughout the country. In Moscow, State Bank Of India owns 60% of Commercial
Bank of India, with Canara Bank owning the rest. 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.

State Bank of India (SBI) (NSE: SBIN, BSE: 500112, LSE: SBID) is the largest Indian
banking and financial services company (by turnover and total assets) with its headquarters
in Mumbai, India. It is state-owned. The bank traces its ancestry to British India, through
the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the
oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other
two presidency banks, Bank of Calcutta and Bank of Bombay to form Imperial Bank of India,
which in turn became State Bank of India. The Government of India nationalized the
Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and
renamed it the State Bank of India. In 2008, the Government took over the stake held by the
Reserve Bank of India.

State Bank Of India provides a range of banking products through its vast network of
branches in India and overseas, including products aimed at non-resident Indians (NRIs).
The State Bank Group, with over 16,000 branches, has the largest banking branch network in
India. It also has around 130 branches overseas. With an asset base of $352 billion and $285
billion in deposits, it is a regional banking behemoth and is one of the largest financial
institutions in the world. It has a market share among Indian commercial banks of about 20%
in deposits and loans.

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The State Bank of India is the 29th most reputed company in the world according to
Forbes.16 Also State Bank Of India is the only bank featured in the coveted "top 10 brands of
India" list in an annual survey conducted by Brand Finance and The Economic Times in
2010.17
The State Bank of India is the largest of the Big Four banks of India, along with ICICI
Bank, Punjab National Bank and HDFC Bank—its main competitors. And" GUINNESS
BOOK OF WORLD RECORD” that 56 million transactions happening per day all over the
world is definitely an achievement.

INDIAN BANKING SCENARIO

The Banking industry comprises of segments that provide financial assistance and advisory
services to its customers by means of varied functions such as commercial banking,
wholesale banking,personal banking, internet banking,mobile banking,credit unions,inv
estment banking and the like. With years, banks are also adding services to their customers.
The Indian banking industry is passing through a phase of customers market. The customers
have more choices in choosing their banks. A competition has been established within the
banks operating in India. With stiff competition and advancement of technology, the services
provided by banks have become more easy and convenient. The past days are witness to an
hour wait before withdrawing cash from accounts or a cheque from north of the country
being cleared in one month in the south.
Bank of Hindustan, set up in 1870, was the earliest Indian Bank . Banking in India on modern
lines started with the establishment of three presidency banks underPresidency Bank‟s act
1876 i.e. Bank of Calcutta, Bank of Bombay and Bank of Madras. The commercial banking
structure in India consists of: Scheduled Commercial Banks &Unscheduled Banks. Banking
Regulation Act of India, 1949 defines Banking as "accepting, for the purpose of lending or
investment of deposits of money from the public, repayable on demand and withdrawal by
cheques, draft, order or otherwise. "The arrival of foreign and private banks with their
superior state-of-the-art technology based services pushed Indian Banks also to follow suit by
going in for the latest technologies so as to meet the threat of competition and retain customer
base.
The evolution of IT services outsourcing in the Indian banks has presently moved on to the
level of Facilities Management (FM). Banks now looking at business process management
(BPM) to increase returns on investment, improve customer relationship management (CRM)
and employee productivity. For, these entities sustaining long- term customer relationship
management (CRM) has become a challenge with almost everyone in the market with similar
products.
CHANGES IN THE STRUCTURE OF BANKS
The financial sector reforms ushered in the year 1991 have been well calibrated and timed to
ensure a smooth transition of the system from a highly regulated regime to a market
economy. The first phase of reforms focused on modification in the policy framework,
improvement in financial health through introduction of various prudential norms and
creation of a competitive environment. The second phase of reforms started in the latter half
of 90s, targeted strengthening the foundation of banking system, streamlining procedures,
upgrading technology and human resources development and further structural changes. The
financial sector reforms carried out so far have made the balance sheets of banks look
healthier and helped them move towards achieving global benchmarks in terms of prudential
norms and best practices. Technology is expected to be the main facilitator of change in the
financial sector.Implementation of technology solutions involves huge capital outlay. Besides
the heavy investment costs, technology applications also have a high degree of obsolescence.
Banks will need to look for ways to optimize resources for technology applications. In this
regard, global partnerships on technology and skills sharing may help.
The pressure on capital structure is expected to trigger a phase of consolidation in the
banking industry. Banks could achieve consolidation through differentways. Mergers between
public sector banks or public sector banks and private banks could be the next logical thing
/development to happen as market players tend to consolidate their position to remain in
competition. Public Sector Banks had, in the past, relied on Government support for capital
Augmentation. However, with the Government making a conscious decision to reduce it's
holding in Banks, most Banks have approached the capital market for raising resources. It is
expected that pressures of market forces would be the determining factor for the
consolidation in the structure of these banks. If the process of consolidation through mergers
and acquisitions momentum, that could see the emergence of a few large Indian banks with
international character.There could be some large national banks and several local levelbank\.

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 ROLE OF THE RESERVE BANK IN THE BANKING
SECTOR
The Reserve Bank of India, being the central bank of the countrynumerous monetary and
financial functions to overlook. Even ina liberalized country such as the United States, the
Federal Reserve hassimilar functions to perform. This implies that the market mechanism
should not be given the sole rein to runs the banking industry and setting the market rates.

BANKS IN THE INDIAN BANKING SYSTEM

Scheduled Non - Scheduled

State Co-operative Commercial

Banks Banks Central Co- Commercial
operative Banks Banks
& Primary Banks

Indian Banks Foreign Banks

State
Public sector Private Bank of
Banks sector India &
Nationali Regional
Its
Banks zed Rural
subsidi
Bank Bank
aries
s s

The functions of the Reserve Bank which have a direct bearing on the
banking sector are:
1.Financial Supervision
This aspect of the Reserve Bank is under the aegis of a Board for Financial Supervision
(BFS). The objective of the BFS is: “to undertake consolidated supervision of the financial
sector comprising commercial banks, financial institutions and non banking finance
companies.” The functions that come under the above mentioned objectives are:
 Restructuring of the system of bank inspections:
Introduction of off-site surveillance Strengthening of the role of statutory auditors and
Strengthening of the internal defences of supervised institutions. Thus, the BFS does such
acts as the supervising financial institutions, consolidated accounting, looking at legal issues
in bank frauds, providing assessments of nonperforming assets and maintaining a supervisory
rating model for banks.

Monetary Authority
The Reserve Bank is the monetary authority of the country. This implies that the Reserve
Bank formulates implements and monitors the monetary policy of the country. The various
monetary policies involves the availability of liquidity in the economy the amount of money
supply to the economy), and setting the interest rates in the country. These rates include the
Statutory Liquidity Ratio (SLR), the Cash Reserve Ratio (CRR) and the Cash Adequacy
Ratio (CAR) among others. By this function, the Reserve Bank maintains price stability in
the economy and ensures that cash flow to various (important) sectors is maintained. In
relation to the banking industry, the setting of interest rates is of utmost importance. This
limit prescribes the conduct of the banks in the economy. It also acts as an entry barrier to the
sector.
Regulator of the Banking System
Being the regulator of the banking, the Reserve Bank “prescribes a set of broad parameters
from within which the country‟s banking and banking and financial System functions". The
specific aims of financial regulation are usually:
a)To enforce applicable laws.
b)To prosecute cases of market misconduct, such as insider trading.
c)To license providers of financial services.
d)To protect clients, and investigate complaints.
e)To maintain confidence in the financial system.

It is evident from these points that the Reserve Bank does have an amount of control over the
functioning and the conduct of the banks in the sector. The Reserve Bank and SEBI
(Securities and Exchange Bureau of India) thus can even force banks to withdraw from the
sector in the case of occurrence of unfair practices.

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Banker to the banks
The Reserve Bank acts as the banker to the various banks in the country and maintains
banking accounts to all the scheduled banks in the country
country.

Mission of State Bank of India

• We will be prompt,
rompt, polite and proactive with our customers.

• We will speak the language of young India.

• We will create products and services that help our customers achieve their goals.

• We will go beyond the call of duty to make our customers valued.

• We will be of service even in the remotest part of our country.

• We will offer excellence in service to those abroad as much as we do to those in India.

• We will imbibe state of art technology to drive excellence.

SWOT analysis of State Bank of India

a) Strengths
 Strong domestic market position sustaining reach and customer confidence.
 Strong capital position helping pursue growth initiatives.
 SBI merger further hastens SBI and its associate banks merger and helping defend its
leadership position.

b) Weaknesses
Reduction in the asset quality increasing nonperforming assets ratio.
Susceptible to political interventions.
 c) Opportunities
 SBI could be the highest beneficiary from the increasing adoption of E-transactions.
transactions.
 Investments in Information Technology will decreas
decreasee transaction costs of SBI.
 New business initiative will expand the market share and increase the
revenues. Growth in general insurance industry will help increasing the
market share.

d) Threats
 Opening of Indian Banking Sector will cause intense competition.
 Global economic slowdown could reduce demand for banking services in India.


SBI Group has more than 115 million customers – Every tenth Indian is a
customer.
Values of SBI
The values of State Bank of India are:
• We will always be honest, transparent and ethical.
• We will respect our customers and fellow associates.
• We will be knowledge driven.
• We will learn and we will share our learning.
• We will never take the early way out.
• We will do everything we can to contribute to tthe
he community we work .

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 ORGANISATION STRUCTURE AND MANAGEMENT
The management of the State Bank1 vests in a Central Board of Directors which Consists of:
A Chairman and a Vice-Chairman appointed by the Central Government in consultation with
the Reserve Bank of India.Two Managing Directors appointed by the Central Board of
Directors with the approval of the Central Government.
• Six directors to be elected in the prescribed manner by the shareholders other than the
Reserve Bank.
• Eight directors to be nominated by the Central Government in consultation with the
Reserve Bank of India to represent territorial and economic interests in such a manner
that not less than two of them have special knowledge of the working of the
cooperative institutions and of rural economy and the others have experience in
commerce, industry, banking and finance;
• One director to be nominated by the Central Government;
• One director to be nominated by the Reserve Bank; and
• Two directors to be appointed to represent the officers and the staff of the bank.
appointed as directors of the State Bank of India. Structural changes have been introduced
by the bank in order to re-orient the business according to changing conditions in the
market. One such step, for the first time, was initiated in 1971.In the year 1979, for the
second time the structural changes were implemented. The major organizational change
in structure took place in 1995, by the appointment of Mckinsey Consultants. Through
changes were introduced in strategies, structures, systems etc., in the organizational set up
of SBI, as per recommendations of the consultant committee.

STATE BANK OF INDIA PRODUCTS AND SERVICES

State Bank of India offers a wide range of services in the Personal Banking Segment which
are indexed here.
Term Deposits
SBI provide security, trust and competitive rate of interest. Flexibility in period of term
deposit from 7 days to 10 years. It is affordable low minimum deposit amount with SBI for a
nominal amount of Rs.1, 000 only. Customers can avail a loan/overdraft against their deposit.
SBI provides loan/overdraft up to 90 per cent of their deposit amount at nominal cost.
Recurring Deposits
Recurring Deposit provides customers the element of compulsion to save at high rates of
interest applicable to Term Deposits along with liquidity to access that savings any time.
Recurring Deposit is flexibility in period of deposit with maturity ranging from 12 months to
120 months. It is low minimum monthly deposit amount. The customer can start a Recurring
Deposit with SBI for monthly instalment of Rs.100 only.
SBI Home Loan
It offers interest rates concessions on Green Homes in accordance with SBI‟s commitment to
Environment protection. The product gives the customers a onetime irrevocable option to
choose one of the three customized combinations of fixed and floating interest rates and also
to choose the order in which the fixed and floating rate will be availed. The minimum loan
amount sanctioned is Rs.5lakh. Its products are again segregated into different types on the
basis of their term of repayment and their loan package: SBI-Maxgain Home Loans, Realty
Home Loans, Home Equity Loans, NRI Home Loans, Tribal Plus, Gram Niwas,
SahyogNiwas, Green Home Loan, Surakshit Home Loan, Yuva Home Loan, Home Loan Pal.
Thus, the bank provides its customers comfortable repayment obligations – Tenure of the
loans equal to the residual maturity of the original Home Loans.
SBI Car Loan
The bank provides its customers the best car loan schemes with excellent service and lower
costs. A quick view by the customers of similar schemes available with other banks shows
that SBI Car Loans for new and old vehicles offer for the customers.

SBI Education Loan

A term loan granted to Indian Nationals for pursuing higher education in India or abroad
where admission has been secured. All courses having employment prospects are eligible for
getting education loans and they are briefed below.

SBI Loan to Pensioners

The customer can avail of a loan from their branch to meet their personal expenses. They can
avail a loan of up to a maximum of 12 months pension, subject to a ceiling of Rs.1 lakh. The
loan may be repaid over a 5 years and will carry a low interest rate of
13.25 per cent per annum.

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SBI Loan against Shares/Debentures
The customers can avail of loans up to Rs.20 lakh against their shares/debentures to enable
them to meet contingencies, personal needs or even for subscribing to rights or new issue of
shares.

SBI Agricultural Loans

The Bank launched the new products, to increase the flow of credit to agriculture sector in the
year 2003-2004. The advances of Agriculture Business Group increased from Rs.1,360crore
in 2003-04 to Rs.34,933 crore in 2006-07 showing an increase of 2468.6 per cent.
Agricultural loans are provided for the purchase of assets connected with rural activities
under agriculture, horticulture, plantation, sericulture, animal husbandry, fisheries etc., where
the loan amount is repayable over a period of time exceeding 3 years.

Under this agricultural loan there are other kinds of benefits provided by SBI through
schemes such as the Kisan Credit Card Scheme, Land Development Schemes, Minor
Irrigation Schemes, Farm Mechanisation Schemes, Krishi Plus Scheme for Customised
Hiring of Tractor to Rural Youth, Lead Bank Scheme etc

SBI Industrial Loans

SBI offers working capital finance to meet the entire range of short-term fund requirements
that arise within a corporate day-to-day operational cycle. The SBI working capital loans can
help company in financing inventories, managing internal cash flows, supporting supply
chains, funding production and marketing operations, providing cash support to business
expansion and carrying current assets. The SBI corporate term loans can support company in
funding ongoing business expansion, repaying high cost debt, technology up gradation, R&D
expenditure, leveraging specific cash streams that accrue into a company, implementing
early retirement schemes and supplementing working capital. Hence, the Bank extends
financial assistance to help agriculturists, industrialists and common man in various modes.
 HUMAN RESOURCES
Learning & Development
The bank has taken up several key initiatives to enthuse and motivate the employees to
perform better so as to achieve the Bank‟s growth plans. As part of the initiative it has taken
up a „Leadership pipeline‟ initiative with the objective of grooming the officials from the
level of Scale-IV up to GM for future leadership positions. Services of reputed institutions
like ISB/Duke University/IIMs have been engaged for the purpose. Further, the Bank has
gone in for accreditation of one of the training institutions for training of debt recovery agents
to facilitate the future appointments of recovery agents. As the Accreditation process is
mandatory for the recovery agents.
Personnel Management
To foster team spirit amongst the employees and to motivate them to excel in customer
service the bank has set up the Performance Linked IncentiveScheme which also helped the
Bank in exploiting the new emerging business opportunities to achieve the Bank‟s growth
plans. The Bank has also gone for contract employment, on cost to company basis, of
specialists like Chartered Accountants, Law Officers, Statisticians, Economists, Customer
Relation Executives, Credit Analysts etc. to take care on growing needs to face competition.
The Bank also revised the Family Pension Scheme for the family pensioners of the Bank
retrospectively from the 1st May 2005. The pension fund has been separated from the Banks‟
liability after obtaining necessary approval from the Board of Trustees. The fund will be
managed by the Treasury Dept. of SBI for better returns
HRMS Project
The Bank has implemented leveraging Technology in employee management area for
automation of its HR process through SAP-ERP-HRMS software. A centralized database of
all employees across SBI is now available where salary processing for 2.05 lakh employees
across SBI and pension processing of approximately 1 lakh SBI/IBI pensioners has been
centralized. The bank also introduced a variety of services like online request submission and
viewing of data etc. to all the employees of the Bank on an online „real time‟ basis, which
will increase efficiency in HR operations and help the management in making employee
related decisions faster.
Recruitment
To meet the requirement of skilled manpower and to tap the emerging business opportunities
the bank has recruited 66 Specialist Management Executives with qualification of

13
CA/ICWA/MBA (Finance, Marketing) during the year. Also the bank has inducted 7 Special
Technical Executives with B.E. /B.Tech qualification in the fields of Chemical, Mechanical,
Electrical, Metallurgical Engineering appointed for manning consultancy cells in Circles.
Further, 917 Probationary Officers and 118 other Specialist Officers have been recruited
during FY 2011-12. This will take care of the Bank‟s requirements of officers in operations
and specialized areas and helps in reducing the age profile of staff but will also provide an
opportunity for greater mobility and marketing thrust across the Bank to achieve its growth
plans.Besides these the bank has also been successfully holding online examination for
promotion from JMGS I to MMGS II, all promotion exercises in respect of officers up to the
grade of Deputy Managing Director.
Training
The bank is making continuous efforts to impart knowledge, to develop skills and also to re-
orient the attitude of its employees and to keep pace with the changing business environment.
The banks network of providing training to its employees consists of 4 apex level colleges
viz. State Bank Staff College, Gurgaon; State Bank Staff College, Hyderabad; State Bank
Institute of Rural Development and State Bank Institute of Information and Communication
Management and over 50 training centres located across the country. The bank also provides
on-site training to its employees working in the branches under the visiting faculty scheme.
Support Systems and Internal Communication System
Adequate support systems have been provided by the bank to its employees for proper flow
of information to them. The employees are also informed about the achievements in the
business. The media used for internal communication includes: The SBI Monthly Review,
Gurukula, SBI Economic Newsletter, and Choyanika
Industrial Relations
In view of garnering good and excellent relationships with the members of both the Staff and
Officers Federations the State Bank of India sorted out various industrial relations issues
through their consistent support and healthy dialogue/discussions during the year. It also
enhanced the limits under various staff loan schemes and other initiatives for providing better
facilities / incentives to the employees, in order to create better industrial relations
environment in the Bank.
Human Resources Management Solutions (HRMS)
The bank has set up a centralized platform for the processing and payment of salary of all the
employees of SBI, SBP, SBM & SBH. It further introduced the automation of centralized
Provident Fund related services to augment faster settlement of terminal benefits.
 Strategic Training Unit (STU)
The banks Strategic Training Unit (STU) has been fully operationalized on 5th April 2010. It has
undertaken a number of initiatives during the year 2011-12 to increase the efficiency and
effectiveness of the Bank‟s training system. Some of the major initiatives in this regard are as
follows: Over 2 lakh (96.7 per cent of Bank‟s staff strength) employees were trained at 5 ATIs
and 47 SBLCs.
State Bank Training Management System has been operationalized for creating a
comprehensive database and tracking of training of all employees. E-learning through HRMS
portal has been expanded to over 213 courses and about 83% of the staff are now registered
on the portal. Leadership Development Programmes were organized for Top Executives and
Senior Management.Research studies by the Bank officials were recognized by various
outside publications/agencies like Bancon, ICRIER, IBFA.

15
INTRODUCTION OF E-
BANKING SERVICES
 E-BANKING
Electronic banking is one of the truly widespread avatars of E-commerce over the world.
Various authors define E-Banking differently but the most definition depicting the meaning
and features of E-Banking are as follows:
Banking is a combination of two, Electronic technology and Banking.
Electronic Banking is a process by which a customer performs banking Transactions
electronically without visiting their banks.
E-Banking denotes the provision of banking and related service through Extensive use of
information technology without direct recourse to the bank by the customer.

NEED FOR E-BANKING

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

17
 E-BANKING PRODUCTS
Automated Teller Machine (ATM)
These are cash dispensing machine, which are frequently seen at banks and other locations
such as shopping canters and building societies. Their main purpose is to allow customer to
draw cash at any time and to provide banking services where it would not have been viable to
open another branch e.g. on university campus. An automated teller machine or automatic
teller machine (ATM) is a computerized telecommunications device that provides a financial
institution's customers a method of financial\ transactions in a public space without the
need for a human clerk or bank
teller. On most modern ATMs, the customer identifies him or herself by inserting a plastic
ATM card with a magnetic stripe or a plastic smartcard with a chip that contains his or her
card number and some security information, such as an expiration date or CVC (CVV).
Security is provided by the customer entering a personal identification number (PIN).Using
an ATM, customers can access their bank accounts in order to make cash withdrawals (or
credit card cash advances) and check their account balances. Many ATMs also allow people
to deposit cash or checks, transfer money between their bank accounts, pay bills, or purchase
goods and services. Some of the advantages of ATM to customers are:-
Ability to draw cash after normal banking hours
Quicker than normal cashier service
Complete security as only the card holder knows the PIN
Does not just operate as a medium of obtaining cash.
Customer can sometimes use the services of other bank ATM’s.
Tele banking or Phone Banking
Telephone banking is relatively new Electronic Banking Product. However it is fastly
becoming one of the most popular products. Customer can perform a number of transactions
from the convenience of their own home or office; in fact from anywhere they have access to
phone,
Customers can do following:-
Check balances and statement information
Transfer funds from one account to another.
Pay certain bills
Order statements or cheque books
Demand draft request
This facility is available with the help of Voice Response System (VRS). This system
basically, accepts only TONE dialed input. Like the ATM customerhas to follow particular
process, initially account number and telephone PIN are fed forthe process to start. Also the
VRS system provides the users within additional facilities such as changing existing
password with the new desired, information about new products, current interest rates etc.

Mobile Banking
Mobile banking comes in as a part of the banks initiative to offer multiple channel banking
providing convenience for its customer. A versatile multifunctional, free service that is
accessible and viewable on the monitor of mobile phone. Mobile phones are playing great
role in Indian banking- both directly and indirectly. They are being used both as banking and
other channels.
Internet Banking
The advent of the Internet and the popularity of personal computers presented both an
opportunity and a challenge for the banking industry. For years, financial institutions have
used powerful computer networks to automate million of daily transactions; today, often the
Only paper record is the customer‟s receipt at the point of sale. Now that their customers are
connected to the Internet via personal computers, banks envision similar advantages by
adopting those same internal electronic processes to home use. Banks view online banking as
a powerful “value added” tool to attract and retain new customers while helping to eliminate
costly paper handling and teller interactions in an increasingly competitive banking
environment.

ADVANTAGES OF E- BANKING

Convenience
Unlike your corner bank, online banking sites never close, they‟re available 24 hours a day,
seven days a week, and they‟re only a mouse click away.

Ubiquity
If you‟re out of state or even out of the country when a money problem arises, you can log on
instantly to your online bank and take care of business, 24\7.

19
Transaction speed
Online bank sites generally execute and confirm transactions at or quicker than ATM
processing speeds.

Efficiency
You can access and manage all of your bank accounts, including IRA‟s, CDs, even securities,
from one secure site.

Effectiveness
Many online banking sites now offer sophisticated tools, including account aggregation,
stock quotes, rate alert and portfolio managing program to help you manage all of your assets
more effectively. Most are also compatible with money managing programs such as quicken
and Microsoft money.
DISADVANTAGES OF E- BANKING

Start-up may take time

In order to register for your bank‟s online program, you will probably have to provide ID and
sign a form at a bank branch. If you and your spouse wish to view and manage their assets
together online, one of you may have to sign a durable power of attorney before the bank will
display all of your holdings together.

Learning curves
Banking sites can be difficult to navigate at first. Plan to invest some time and\or read the
tutorials in order to become comfortable in your virtual lobby.

Bank site changes

Even the largest banks periodically upgrade their online programs, adding new features in
unfamiliar places. In some cases, you may have to re-enter account information
CHAPTER :2
REVIEW OF
LITERATURE

21
REVIEW OF LITERATURE
Abou-Robich, Moutaz (2005) studied how to analyse comfort levels and attitude of users
towards online banking facilities. The findings resulted that there is a correlation between
attitude towards e-banking and feeling of security with regard to their demographic variables.
Isern, Jennifer (2008) pointed out that a positive relationship between the level of financial
infrastructure and the level of competition and a negative relationship between the degree of
state ownership in a banking sector and the level of competition.
Reynolds, John (2007) said that 2006 e-banking technology services industry customer
loyalty survey data results in order to improve marketing resource allocation for corporate
ebanking products and services.
Huang, Haibo (2005) reveals that the successful introduction electronic money and
ebanking services depends mainly on people acceptance.The major finding is that although
ebanking customers more or less have some common characteristics, they differ across
different types of e-banking services.
Taft, Jeanette (2007) pointed out that Technology Acceptance Model (TAM) as applied to a
specific type of technology: e-banking.They suggested that e-banking – prior training,
perceived ease of use of e-banking technology.
Jeon, Kiyong (2014) have said that consumer prefer larger banks in U.S.Because they has to
reduce their transportation cost by way of larger banks have multiple ATM centre‟s across
the country.
Lee, Jihyun (2003) examined that to identify whether customer intention affecting to use
online financial services.The effects of attitude toward behaviour,subjective norm were
examined.Demographic variables were included as control variables.
Ding, Xin (2007) reveals that consider for research consumer behaviour on internet in the last
years.The findings conclude that customer behaviour from self-service, Service quality and
experience design perspectives.
Wamalwa, Tom (2006) said that whether internet banking strategies were aligned with the
bank‟s core business based or not identified.
Featherman, MauricioSanchez (2002) studied that perceived risk inhibited consumer
adoption intentions as well as perception of the usability, usefulness of online payment.
Bayles, MichelleEsther (2004) have said that investigating factor contribute their decision to
bank online, frequency of banking activities.
Massad, Nelson (2003) contributed at a theoretical level by providing deeper understanding
of the transactions between customers and service providers.
Yee Yen, Yuen (2011) have said that comparison between factors affecting consumer
acceptance of internet banking services between developed and developing countries.
Siregar, DonaD (2004) investigate that the relative importance of different factors influence
bank decision on going public over consolidating with other banking organisations.Many
banks experienced consolidation through merger acquisitions (M&A).
Bauer, Keldon.J (2002) examined that bankers and consumers are both interested in the
potential for internet banking. Thefindings show that banks too have been developing their
infrastructure to address what they perceive as a growing demand for online services.
Yousafzai, ShumailaYakub Khan (2010)has said that to develop aconceptual model that
determines how intentions towards the use of internet banking are formed and to what extent
they are related to the actual use of internet banking.
Ubadineke, Francis.N (2014) indicated that advances ininformation technology and
telecommunications are resulting in new delivery channels for bank products and services in
the developing countries.
Nor, KhalilMd (2016) results indicate that the model provides a good understanding of
factors that influence the intention to use internet banking.
Chen,Lisa(2017) studied that will increase our understanding
infinancial,accounting,management of information system,business administration and
decision making related to the adoption of Internet banking in Mainland China.
Adham, KhairulAkmaliah (2018) indicated that Malaysian banks could be grouped into two
in regard to their reasons for adopting the electronic delivery systems.
Amruth Raj Nippatlapalli (2019) In his research paper “A Study on Customer Satisfaction
of Commercial Banks: Case Study on State Bank of India”. This paper present Customer
satisfaction, a term frequently used in marketing, is a measure of how products and services
supplied by a company meet or surpass customer expectation. Customer satisfaction is
defined as "the number of customers, or percentage of total customers, whose reported
experience with a firm, its products, or its services (ratings) exceeds specified satisfaction
goals."Banking in India originated in the last decades of the 18th century. The first banks
were The General Bank of India, NOW which started in 1786, and Bank of Hindustan, which
started in 1790; both are now defunct. The oldest bank in existence in India is the State Bank
of India, which originated in the Bank of Calcutta in June 1806

23
 CHAPTER :3
NEED ,SCOPE
&OBJECTIVE
OF THE STUDY
NEED OF THE STUDY
• To determining growth direction of online banking service.

• Promoting E-banking services in banking industry.

• Customer satisfaction will be taken into consideration about the E- banking.

OBJECTIVES OF THE RESEARCH

• To evaluate the awareness of E-Banking among the customers of SBI.
• To measure the customer satisfaction in E-Banking services provided by SBI.
• To study the most preferred E-Banking service offered by SBI.
• To know which age group of customers is using different e-banking facilities.

SCOPE OF THE STUDY

• All the classes of the customers were taken into consideration.

• This study was covered E-Banking service sector.

• This is a realistic source directly collected from the customers of Bank.

• The emergence of E-Banking has enabled the banks to offer

real-time transactions and integrate all customers‟ related
functions. Indian Banks are utilizing the new technology to
provide better technology and convenient access to its
customers and India is thus poised to for a huge growth in the
world of electronic banking.

25
 CHAPTER :4
RESEARCH
METHODOLOGY
 RESEARCH METHODOLOGY:-
Research methodology is a way to systematically show the research problem. It may be
understood as a science of studying how research is done scientifically. It is necessary for the
researcher to know not only the research methods but also the methodology. This Section
includes the methodology which includes. The research design, objectives of study, scope of
study along with research methodology and limitations of study etc.

TYPE OF RESEARCH
This study is DESCRIPTIVE in nature. It helps in breaking vague problem into smaller and
precise problem and emphasizes on discovering of new ideas and insights.
RESEARCH DESIGN:
Research design constitutes the blue print for the collection, measurement and analysis of
data. The present study seeks to identify the extent of preferences of E-Banking over
traditional banking among service class. The research design is exploratory in nature. The
research has been conducted with the customers of SBI. For the selection of the sample,
convenient sampling method was adopted and an attempt has been made to include all the
age groups and gender within the service class.
SOURCES OF DATA:

Following are the methods of sources of data:

SECONDARY DATA:

• journals, magazines.

•Through internet.

PRIMARY DATA:
Questionnaire was used to collect primary data from respondents. The questionnaire was
structured type and contained questions relating to different dimensions of e-banking
preferences among service class such as level of usage, factors influencing the usage of E-
banking services, benefits accruing to the users of e-banking services, problems encountered.
An attempt was also made to elicit reasons for its non-usage. The questions included in the
questionnaire were open-ended, dichotomous and offering multiple choices.

27
SAMPLING UNIT:
It defines the target population that will be sampled i.e. it answers who is to be surveyed. In
this study, the sampling unit is the Customers of SBI.
SAMPLING SIZE:
It indicates the numbers of people to be surveyed. Though large samples give more reliable
results than small samples but due to constraint of time, the sample size was restricted to 50
respondents. The respondents belong to different income group and profession.

METHOD OF DATA COLLECTION:

The survey method is used to collect the data from State Bank of India visited for the purpose
of collection of data.
RESEARCH INSTRUMENT:
The instrument used for gathering data was questionnaire. To get further insight in to the
research problem, interview regarding their buying practices too was made. This was done to
crosscheck the authenticity of the data provided. To supplement the primary data and to
facilitate the process of drawing inference, secondary data was collected from published
sources like magazines, journals, newspapers etc.

Tools and techniques of analysis:

The data so collected will be analysed through the application of statistical techniques, such
as bar graphs and pie charts.
 CHAPTER :5
DATA ANALYSIS

29
Q.1)which
1)which type of account do you have in state bank of india ?
50 responses
Table no.1
Particular No. of respondents %age of respondents

a)savings A/c 32 32
b)current A/c 7 14
c)fixed A/c 11 64
d) Demat A/c 0 -
Total 50 100

demet a/c
0%

saving a/c
29%

fixed a/c
58% current a/c
13%

Chart no.1

Interpretation:
From the above analysis we can analyze that majority of the respondents are having Savings
A/c in(32%) ,fixed A/c(64%) and only few number of respondents are holding current
A/c(14%) and Demat A/c(0%).
2)For how long are you associated with the state bank?
50responses
Table no.2
No. of respondents %age of
respondents
a)less than a year 4 10
b)1-5 years 5 10
c)5-10 year 24 46
d)more than 10 year 17 34
Total 50 100

more than 10
years
5-10 years 9%
10%

1-5 years less than a

23% year
58%

Chart no.2

Interpretation:
The result shows that majority of respondents i.e.10% of the respondents are associated with
State bank from less than a years, 10% of the respondets are 1-5 years,46% of the
respondents are 5-10 years and 34% of the respondents are associated with SBI from more
than 10 years.

31
3)Are you aware of e- banking services provided by the bank?
50 responses
Table no.3
No. of respondents %age of respondents

a)Yes 448 96

b)No 2 4

c)Maybe 0 -

Total 50 100

nomaybe
4% 0%

yes
96%

Chart no.3

Interpretation :
48% respondents are majority of the respondents are aware of the E
E-Banking
Banking service offered
by SBI and 2% respondents are not aware of the ee-banking services.
.
4)if yes,which of the following E-
E banking services are you aware of ?
50 responses
Table no.4
Statements No of respondents %age of satisfaction

a)ATM 27 54

B)Internat banking 10 20

c)Mobile banking 11 22

d)credit card & debit card 2 4

Total 50 100

credit and debit card

4%
mobile banking
22%
ATM
internet banking 54%
20%

Chart no.4

Interpretation:
The result shows that majority of respondents i.e. 54% of the respondents accesses ATM
Services, 20 % of the respondents are internet banking ,22% of the respondents are mobile
banking and while remaining 4% of the respondents uses debit and credit card e-banking
e
services.

33
5)Are you availing E - banking services
s ?
50responses
Table no.5
Statements No of respondents %age of satisfaction

a)Yes 48 96

b)No 1 2

c)Maybe 1 2

Total 50 100

no maybe
2% 2%

yes
96%

Chart no.5

Interpretation:
96% of the respondents are availing the E-Banking
E Banking service offered by SBI and 2 %of the
respondents are no availing and 2% respondents are maybe are availing the E-banking
E
services offered by SBI.
6)if yes,how convenient you find accessing e -banking services?
50 responses
Table no.6
Statements No of respondents %age of satisfaction

a)Easy 28 56

b)normal 22 44

c)difficult 0 0

Total 50 100

Difficult
0%

Normal
44%
Easy
56%

Chart no.6

INTERPRETATION:
44%f the respondents find normal while accessing E
E- Banking services and 56% of the
respondents are easy accessing e-banking
e services.

35
7)How long you had been using the e
e-banking services?
50 responses
Table no.7
Statements No of respondents %age of satisfaction

a)less than 6 months 4 8

b)6 months to 1 year 5 10
c)1year to 2 year 5 10
d)more than 2 year 36 72
Total 50 100

No. of respondents
less than 6
months
8% 6 months to 1
year
10%
1 year to 2 year
10%
more than
2 year
72%

Chart no.7

Interpretation:
The result shows that majority of respondents i.e.8% of the respondents are associated with
State bank from less than 6 months, 10% of the respondets are 6 -11 years,10% of the
respondents are 1-2years
2years and 72% of the respondents
respondents are associated with SBI from more than
2years.
8)How frequently do you use each of following e
e- banking services?

Table no.8
Statements No of respondents %age of satisfaction

a)daily 10 20

b)2 to 3 times per week 20 40

c)once a month 10 20

d)once in 3 to 6vmonths 10 20

Total 50 100

once in 3 to 6 daily
month 20%
20%

2 to 3 times
once a month per week
20% 40%

Chart no.8

Interpretation:
The result shows that majority of respondents i.e.20% of the respondents are used the e
banking services in daily,, 40% of the respondets are 12 to 3 times per week,20% of the
respondents are once in 3 to 6 month and 20% of the respondents are usd e banking services
with SBI from once a month.

37
9)which of the folloowing factors influences you the most to use E-
E banking
services?
Table no.9

PARTICULARS NO OF RESPONDENDS PERCENTAGE (%)

All time availability 28 56
Ease of use 10 20
security 5 10
Direct access 5 10
Status symbol 2 4
Total 50 100

direct access status symbol

10% 4%

security
10% all time availability
ease of use
56%
20%

Chart no.9

Interpretation:
From the above data we can observe that half of the respondents, ie.56% of the respondents
uses E banking Services because of the all time availability of the E
E-Banking
Banking services, 20%
of the respondents use uses E-banking
banking services because of ease of use and remaining 10%
and 10% and 4% of the respondents
pondents use E-banking
E banking services for security and direct access and
status symbol.
10)which of the following benefits accrue to you,while using E
E- banking
services?
50
Table no.10
Statements No of respondents %age of satisfaction

a)time saving 18 36
b)inexpensive 2 4
c)easy processing 12 24
d)easy fund transfer 12 24
e)others 6 12
Total 50 100

No. of respondents
others
12%

easy fund transfer Time saving

24% 36%

easy processing
24%

inexpensive
4%

Chart no.10

Interpretation:
From the above data we can observe that majority of the respondents, ie .36%of the respondents
benefits time saving while accessing E
E-banking
banking services while the others benefits 12% and 4 %
inexpensive and 24% easy processing in accessing and easy fund transfer24%.

39
11)How convenient you find while accessing transaction in ATM? 50responses
responses

Table no.11

Statements No of respondents %age of satisfaction

a)Easy 22 44

b)normal 28 56

c)difficult 0 0

Total 50 100

difficult No.of respondents

0%

Easy
44%

Normal
56%

Chart no.11

INTERPRETATION:
56%f the respondents find normal while accessing E
E- Banking services and 44% of the
respondents are easy accessing e-banking
e services.
12)What type of ATM card do you have?
50 responses
Table no.12
Statements No of respondents %age of satisfaction

a)credit card 3 7

b)debit card 29 57

c)others 18 36

Total 50 100

credit card
others 6%
36%

debit card
58%

Chart no.12

Interpretation:
The result shows that majority of respondents i.e. 58%% of the respondents are using debit
card (ATM Services), while remaining 6% of the respondents uses credit card services and
36% of the respondents are using other facility.

41
13)How good is the ATM facility provided by the state bank?
50responses
Table no.13
Statements No of respondents %age of satisfaction

a)much better than other banks 11 22

b)good 22 44

c)excellent 16 32

d)poor service 1 2

Total 50 100

poor services much better than

2% other banks
excellent 22%
32%

good
44%

Chart no.13

Interpretation:
From the above date we can interpret that the ATM facility offered by SBI is Good according
to the customers perspective i.e.44%,and 22% respondents are much better than others banks
,32%of respondents are excellent and 2% poor services provided by bank.
14)Are you aware of the mobile banking services provided by state bank of
india?
50 responses
Table no.14
Statements No of respondents %age of satisfaction

a)Yes 48 96

b)No 2 4

c)Maybe 0 0

Total 50 100

no
4%

yes
96%

Chart no.14
Interpretation:
96% of the respondents are aware of mobile banking of the E
E-Banking
Banking service offered by
SBI and 4 %of the respondents are not aware of mobile banking and 0% respondents are
maybe aware of mobile banking E
E-banking services offered by SBI.

43
15)If yes,which of the following services do you like in mobile banking?
50responses
Table no.15
Statements No of respondents %age of satisfaction

a)account balance enquiry 18 38

b)credit &debit card alerts 5 10
c)bill payment 10 20
d)transaction history 12 24
e)cheque book requests 1 2
f)minimum balance alerts 3 6
Total 50 100

minimum balance
alerts
cheque book 6% account balance
requests enquiry
2% 37%
transaction
history
25% bill payment
20%

credit and debit

card alerts
10%

Chart no.15

Interpretation:
From the above data we can observe that half of the respondents, i.e.38%% of the
respondents like mobile banking Services because of the account balance enquiry of the
mobile-Banking
Banking services, 10% of the respondents like uses mobile -banking
banking services because
of debit card and credit card alerts and remaining 20% and 24%of the respondents like
mobile-banking
banking services for bill payment and transaction history and 2% and 6% of the
respondents are like minimum balance alerts and 2% of cheque book requests..
16)At what level,have your problems been often resolved in the bank,with regard to
following E-banking services?
Table no.16
PARTICULARS NO OF RESPONDENDS PERCENTAGE (%)

Head office level 5 10

Regional level 3 6

Branch level 42 84

total 50 100

head office level

10% regional block
6%

branch level
84%

Chart no.16
no.1

Interpretation:
The above result shows that majority of 84 % the respondents problems are solved by branch
level ,10% and 6% of the respondents problems are solved by regional block.

45
17)Are you satisfied with your 's banking services?
50 responses
Table no.17
Statements No of respondents %age of satisfaction

a)highly satisfied 8 16

b)satisfied 21 42

c)neutral 21 42

d)Dissatisfied 0 0

e)highly dissatisfied 0 0

Total 50 100

dissatisfied Highly dissatisfied Highly satisfied

0% 0% 16%

neutral
42%

satisfied
42%

Chart no.17

Interpretation:
The above results shows that, majority 16% of the respondents are highly satisfied with the
E-banking
banking Services offered by SBI,42%of the respondents are satisfied ,and 42% of the
respondents are neutral with the ee-banking services offered by banks.
18)How much secure to use mobile and internet banking services?
50 responses
Table no.18
Statements No of respondents %age of satisfaction

a)very good 15 30

b)good 30 60

c)excellent 6 10

d)poor 0 0

Total 50 100

excellent poor
12% 0%
very good
29%

good
59%

Chart no.18

Interpretation:
From the above date we can interpret that the SBI is Good according to the secure the mobile
banking i.e.59%,12%of respondents are excellent and 29%very good work for secure the
mobile banking provided by bank.

47
19)what do you think of your bank what comes first in your mind?
mind?51
51 responses
Table no.19
Statements No of respondents %age of satisfaction

a)Personalised services 8 16
b)wide branch network 3 6
c)customer services 16 32
d)computersied banking 21 42
e)core banking 2 4
Total 50 100

No.of respondents
Personalised
services
16%
customer services
32% wide branch
network
coputersied 6%
banking
42%
core banking
4%

Chart no.19

Interpretation:
From the above data we can observe that majority of the respondents, ie .32%of the
respondents while first comes in mind is customer services, while the others personalized
services is 16% and 6 % is wide area network and 4% core banking in accessing and
computersied banking is 42%.
20)Rate the following statements with regards to potential problems identified in e-
e banking
services?
Table no.20
No.of respondents %age of respondents
a)Time consuming 10 20
b)security issue 15 30
c)ATM out of order 5 10
d)internet connectivity issue 5 10
e)password forgotten 5 10
f)card misused 10 20

Total 50 100

internet
connectivity
ATM out of order 9%
10%
security issue time consuming
23% 58%

Chart no.20

Interpretation:
The above result shows that majority of 59 % the respondents problems are identified
regarding time consuming,23% and 8% of the respondents problems are regarding security
issue and internet connectivity and 10% of the respondents problems

49
21) Are you agree"SBI bank provided quality servies to the customers"?
50responses
Table no.21
Statements No of respondents %age of satisfaction

a)strongly agree 14 28

b)agree 36 72

c)strongly disagree 0 0

Total 50 100

strongly disagree
0%
strongly agree
28%

agree
72%

Chart no.21

Interpretation:
The above results shows that, majority 72% of the respondents are agree with the E-banking
E
Services offered by SBI,28%of the respondents are strongly agree that SBI provided quality
services.
22)Are you satisfied with the number of services offered on our online platforms?
Table no.22
Statements No of respondents %age of satisfaction

a)Yes 47 94

b)No 2 4

c)Maybe 1 2

Total 50 100

no maybe
4% 2%

yes
94%

Chart no.22

Interpretation :
94% respondents are majority of the respondents are satisfied of the online service offered by
SBI and 4% respondents are not satisfied of the e-banking
e banking services and 2% of the respondents
are maybe satisfied with online services provided by banks.
.

51
23)Have you contacted your branch by phone in the last year?
50 responses
Table no.23
Statements No of respondents %age of satisfaction

a)Yes 45 90

b)No 5 10

c)Maybe 0 0

Total 50 100

no maybe
10% 0%

yes
90%

Chart no.23
Interpretation :
90% respondents are majority of the respondents are contacted with phone of the E
E-Banking
service offered by SBI and 10% respondents are not contacted with phone of the e-banking
e
services.
24)The branch staff are friendly and behave in a courteous manner when
dealing with you ?
50 responses
Table no.24
Statements No of respondents %age of satisfaction

a)excellent 20 40

b)good 20 40

c)avearge 10 20

d)poor 0 0

Total 50 100

poor
0%
average
20% execellent
40%

good
40%

Chart no.24

Interpretation:
From the above date we can interpret that the branch staff behave the friendly is Good
according to the customers perspective i.e.40%,and 40% respondents are excellent ,20%of
respondents are average behave by bank.

53
25)what do you feel that the bank needs improvement?
50responses
Table no.25
statements No.of respondents %age of respondents

Customer services 15 30

Quick responses 4 8

Net banking 2 4

Others 29 58

Total 50 100

customer services
30%

others
58%

quick response
8%
net banking
4%

Chart no.25

Interpretation:
From the above data we can observe that majority of the respondents, ie .30%of the
respondents while accessing the improvement of the E
E-banking
banking services while the others
improvements is 58% and 8 % for quick response and 4% net banking in accessing the
improvements.
 CHAPTER-6
FINDINGS,
SUGGESTIONS
&LIMITATIONS

55
 FINDINGS OF THE STUDY
• From this study we can observe that majority of the respondents, ie, 42.5% of the
respondents benefits time saving while accessing E-banking services
• E-banking constitutes services provided in terms of ATMs, Debit Card, Credit Card,
Phone Banking, Mobile Banking, Internet Banking etc, of which the first six have
been covered. Amongst these ATM scores the largest used service status (75%), while
mobile banking lags behind by scoring the least ie.,7.5%, and Internet Banking
with17.5%.
• To find out the level of usage amongst the service class, percentage has been
calculated from the total completely filled in questionnaires and the incomplete
questionnaires were discarded. The frequency of usage of ATM is highest followed
by debit card.
• 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.
• When asked to list various benefits accruing from the usage of e-banking, timesaving
received highest percentage score at 70% among different benefits such as ,
inexpensive(10%),easy processing (10%), easy processing feature scored more than
th inexpensiveness of the e banking services. The other benefit securing to the people
in clude ready availability of funds,removal of middle men and no rude customer
relation executives.
• Among the users, various problems that are encountered while using e-banking
services. Card misuse and its misplace are major reasons 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.
• From the non users, an attempt was made to elicit the reasons for its non usage.
Satisfaction with traditional banking was considered as prime de-motivating factor,
followed closely by the fear of insecurity, then „hidden cost‟ factor, which suggested
their resistance to change, which to some extent can be countered by aggressive
advertisement and utilizing other modes of awareness dissemination as well.
 SUGGESTIONS

• Aligning roles and value propositions with the customer segments.

• Acquiring new capabilities through strategic alliances. The above can be implemented in
four steps.
• Familiarizing the customer to new environment by demo version of software on bank's
web site. This should contain tour through the features which are to be included. It will
enable users to give suggestions for improvements, which can be incorporated in later
versions wherever feasible.
• To provide services such as account information and balances, statement of account,
transaction tracking, mailbox, check book issue, stop payment, financial and customized
information.
• To include additional services such as fund transfers, standing instructions, opening fixed
deposits, intimation of loss of ATM cards.
• We can see the time is changing and we the passage of time people are accepting
technology there is still a lot of perceptual blocking which hampers the growth it‟s the
normal tendency of a human not to have changes work on the old track, that‟s also one of
the reason for the slow acceptance of internet banking accounts.
• The customers must to change a pin number at least in a month.
• Give proper training to customers for using E-banking
• Create a trust in mind of customers towards security of their accounts
• Provide a platform from where the customers can access different accounts at single time
without extra charge.
• Make the sites more users friendly.
• Customers should be motivated to use E- banking facilities more

57
 LIMITATIONS OF THE STUDY
• Every research is conducted under some constraints and this research is not anexception.
Limitations of this study are as follows:-
• There were several time constraints.
• .The study is limited to areas only.
• The sample size of only 50 was taken from the large population for the purpose of study,
so there can be difference between results of sample from total population.
• The study is related customers only.
• People were reluctant to go in to details because of their busy schedules.
• Merely asking questions and recording answers may not always elicit the actualin
formation sought.
• Due to continuous change in environment, what is relevant today may beirrelevant
tomorrow.
• Some respondents were hesitating to give true responses.
• The data was collected limited time period.
 CONCLUSION
The usage of E-banking is all set to increase among the service class. The service class at the
moment is not using the services thoroughly due to various hurdling factors like in security and
fear of hidden costs etc. So banks should come forward with measures to reduce the
apprehensions of their customers through awareness campaigns and more meaningful
advertisements to make E-banking popular among all the age and income groups. Further, with
increasing consumer demands, banks have to constantly think of innovative customized services
to remain competitive. E-Banking is an innovative tool that is fast becoming a necessity. It is a
successful strategic weapon for banks to remain profitable in a volatile and competitive
marketplace of today. In future, the availability of technology to ensure safety and privacy of e-
transactions and the RBI guidelines on various aspects of internet banking will definitely help in
rapid growth of e- banking in India.

59
 CHAPTER :7

BIBLIOGRAPHY
references
Abou-Robich, Moutaz (2005) “analyse comfort levels and attitude of users towards online
banking facilities”,Vol.23,customer attitude towards online banking (4-5)
Isern, Jennifer (2008) “positive relationship between the level of financial”vol.3,jornal book of
relationship of customer services.measuring customer relationshipwith high financial
services.17(4)
Reynolds, John (2007) said that 2006 e-banking technology services industry,journal of E-
banking services nd technology services, vol.3 mutiple item scale for assessing electronic
services quality,journal of research paper7(3)
Huang, Haibo (2005) “ebanking customers more or less have some common characteristics,
they differ across different types of e-banking services”.vol.3 international journal of electronic
finance,1
Taft, Jeanette (2007) “e-banking.They suggested that e-banking – prior training, perceived ease
of use of e-banking technology.”vol150.e- banking and customer training program.
Jeon, Kiyong (2014) “have said that consumer prefer larger banks in U.S.Because “international
journal of research 14(1)
Lee, Jihyun (2003) examined that to identify whether customer intention affecting to use online
financial services.”online banking services,21(1)
Ding, Xin (2007) “The findings conclude that customer behaviour from self-service, Service
quality and experience design perspectives.”value creation models and information exchange
,4(3).
Wamalwa, Tom (2006) said that whether internet banking strategies were aligned with the
bank‟s core business based or not identified.adoption of banking strategies managing services
quality,17(4)
Featherman, MauricioSanchez (2002)” studied that perceived risk inhibited consumer adoption
intentions as well as perception of the usability, usefulness of online payment”.assurance of bank
services facility(3)
Bayles, MichelleEsther (2004) “have said that investigating factor contribute their decision to
bank online, frequency of banking activities”.services quality in online banking 20(6)
Massad, Nelson (2003) “contributed at a theoretical level by providing deeper understanding of
the transactions between customers and service providers.”vol.42(5)
Yee Yen, Yuen (2011) “have said that comparison between factors affecting consumer

61
acceptance of internet banking services between developed and developing countries.”
Siregar, DonaD (2004)” investigate that the relative importance of different factors influence
bank decision on going public over consolidating with other banking organisations.
Bauer, Keldon.J (2002) “examined that bankers and consumers are both interested in the
potential for internet banking”identified banker and customer relationship.vol.4(3)
Ubadineke, Francis.N (2014) indicated that advances in information technology and
telecommunications are resulting in new delivery channels for bank products and services in the
developing countries.rapid internet technology and discuss about information technology,2(2)

Nor, KhalilMd (2016) results indicate that the model provides a good understanding of factors
that influence the intention to use internet banking.internet banking with other banking
channels,vol.26
Chen,Lisa(2017)”studied that will increase our understanding
infinancial,accounting,management of information system,business administration and decision
making related to the adoption of Internet banking in Mainland China.”vol.28(4)
Amruth Raj Nippatlapalli (2019) In his research paper “A Study on Customer Satisfaction of
Commercial Banks: Case Study on State Bank of India”.customer satisfaction with e banking
services,vol.1(3)321-325

WEBSITES:

1.http://www.statebankofindia.co.in/
2.http://capitaline.com/user/framepage.asp?id=1
3.http://web.ebscohost.com/ehost/detail?vid=4&hid=113&sid=473dc91e-3241-4a30-
4.http://www.moneycontrol.com/competition/unionbankindia/comparison/UBI01
5.http://www.docstoc.com/docs/1021354/Banking-Industry-Analysis (imp) .
6.http://www.managementparadise.com/forums/strategic
managementbankinginsurance/52883- swot-analysis-indian-banking-sector.html
CHAPTER :8

ANNEXURE

63
 QUESTIONNAIRE
Customer’s Name: ………………………….email address…………………
Age ………………….. Gender……………..
Address: ………………………….occupation……………….
qualification…………… …………income……………..

1)Which Type of Account do you have in State Bank Of India (SBI)?

a)Savings A/c b)Current A/c c)NRI account d) Demat account

2)For how long are you associated with the state Bank?

a)Less than a year b)1 – 5 Years

c)5 – 10 Years d)More than 10 years

3) Are you aware of E -banking services provided by the bank?

a)Yes b)No (If No, answer question no. 19 directly)

4) If YES, which of the following E-banking services are you aware of?

a)ATM b)Internet Banking c)Mobile Banking

d) Credit Card e)ATM cum Debit Card

5) Are you availing E-banking services?

a)Yes b)No

6) If YES, how convenient you find accessing E-banking services?

a)Easy b)Normal c)Difficult

7)How long you had been using the following E-banking services?

a)Less than 6months

b)6 months to 1 year
c)1 year to 2 year
d)2 years to 3 years
e) More than 3 years

8) How frequently do you use each of the following E- banking services?

Factors Once Once Once in a Once in Infrequently

in a in a fortnight. a
day. week. month.
A Internet
Banking
B Mobile
Banking
C ATM
D Credit Card

65
9) Which of the following factors influence you the most to use E- banking services?

Factors Strongly Agree Neither Disagree Strongly

Agree Agree nor Disagree
Disagree
A All time
Availability
B Ease of Use
C Nearness
D Security
E Direct Access
F Status Symbol

10) Which of the following benefits accrue to you, while using E-banking services?

a)Time Saving b)Inexpensive

c)Easy Processing d)Easy Fund Transfer e)Others

11)How convenient you find while accessing transaction in ATM?

a)Easy b)Normal c)Difficult

12)What type of ATM Card do you have ?

a)Credit Card b)Debit Card c)Others

13)How good is the ATM facility provided by the state Bank ?

a) Much better than other banks. b) Good

c) Excellent c) Poor Service.

14)Are you aware of the Mobile Banking Services Provided by state Bank of India?

a)Yes b)No

15)If Yes, which of the following services do you like in Mobile- Banking?

a)Account Balance Enquiry b)Credit/Debit Alerts c)Bill Payment.

d)Transaction History e)Cheque Book Requests f)Min Balance Alerts

16) At what level, have your problems been often resolved in the bank, with regard to following
E-banking services?

Options Head Office Regional Office Branch Customer Problem

Level Level Level Care Not
Level Solved
ATM

Internet Banking

Mobile Banking

Credit Cards

67
17) How satisfactory is the complaint/grievances settlement system of your bank with regard to
following E-banking services?
Options Highly Satisfactor Neutral Unsatisfacto Highly
Satisfactory y ry Unsatisfacto
ry

ATM

Internet Banking

Mobile Banking

Credit Cards

18) are you satisfied with your bank’s E-banking services?

a)Highly Satisfied b)Satisfied c)Neutral

d)Dissatisfied e) Highly Dissatisfied

19)how much secure to use mobile and internet banking services?

a)very good b)good
c)excellent d)poor
20) Kindly rate thefollowing reasons enlisted for not using the E-banking services?
Factors Strongl Agree Neither Agree Disagree Strong
y Agree nor Disagree ly
Disagr
ee
A No need(
Satisfied with
Traditional
Banking)
B Don’t have time.
C No Access to
Internet/Mobile
D Concerned about
security.
E Lack of
Operational
knowledge
F Charge hidden
Costs

21)Rate the following statements with regards to potential problems identified in

E-Banking services?

Factors Strongly Agree Neither Agree Disagree Strongly

Agree nor Disagree Disagree
A Time Consuming
B Security Issue
C ATM out of order
D Amount debited but not
withdrawn
E Internet Connectivity Issue
F Password forgotten
G Card misplaced / Misused

69
21) Are you satisfied with the number of services offered on our online platforms?
a) Yes
b)No

22)Have you contacted your branch by phone in the last year?

a)yes
b)no

23)The branch staff are friendly and behave in a courteous manner when dealing with you?
a) excellent
b)good
c)average
d)poor

24)what do you think of your bank what comes first in your bank?
a)Personalised services b)wide branch network
c)customer services d)computerized banking
e)core banking

25) what do you feel that the bank needs improvement ?

a)customer services
b)quick response
c)net banking
d)proper information about products and services
e) others
71