General Management Project:

Consumer awareness towards Electronic Banking Services

offered by State Bank Of India

Submitted By

Ishwar Atul Jathar

UNDER THE GUIDANCE OF

Mrs. Trupti Naik

A PROJECT SUBMITTED IN PARTIAL FULFILMENT OF

MMS TO

VIDYALANKAR INSTITUTE OF TECHNOLOGY

Wadala (East), Mumbai 400 037

March 2020

1
 General Management Project:

Consumer awareness towards Electronic Banking Services

offered by State Bank Of India

Submitted By

Ishwar Atul Jathar

UNDER THE GUIDANCE OF

Mrs. Trupti Naik

A PROJECT SUBMITTED IN PARTIAL FULFILMENT OF

MMS TO

VIDYALANKAR INSTITUTE OF TECHNOLOGY

Wadala (East), Mumbai 400 037

March 2020

2
 DECLARATION

This is to declare that the study presented by me to Vidyalankar Institute of

Technology, in completion of the Master in Management Studies (MMS) under the
“Consumer awareness towards Electronic Banking Services offered by State Bank Of India ”
has been accomplished under the guidance of Mrs. Trupti Naik.

Ishwar Atul Jathr

 3

ACKNOWLEDGEMENT

My project on Consumer awareness towards Electronic Banking Services offered by State

Bank Of India has been a great learning experience. I was exposed to the different

areas of research in finance and gained valuable experience, which I will always
recall with a sense of satisfaction and pride.

This is to acknowledge Mrs. Trupti Naik under whose guidance I have been able to
successfully complete this project and effectively come to a very successful
conclusion.

A greater share of inputs and data from Faculty made this project report possible to
its rightful accuracy.

To all my colleagues who have helped me either directly or indirectly, I am grateful

for their valuable inputs. This project would not have been possible without their
help.

Ishwar Atul Jathar

 4

TABLE OF CONTENT

SR. NO TOPIC PAGE NO

1 EXECUTIVE SUMMARY 6

2 LITERATURE REVIEW 8

3 METHODOLOGY 21

4 DATA ANALYSIS 24

5 HYPOTHESIS TESTING 34

6 LIMITATIONS 42

7 FINDINGS 43

8 SUGGESTIONS 44

9 CONCLUSION 45

10 BIBLIOGRAPHY & REFERENCES 46

 5

EXECUTIVE SUMMARY

A research conducted under a topic- “Consumer awareness towards Electronic Banking

Services offered by State Bank Of India.”

Problem Statement:

To study consumer awareness towards electronic banking services offered by State Bank of India.

Research Objectives:

1) To study various e-banking services offered by State Bank of India.

2) To study the consumer awareness towards e- banking services offered by State Bank of
India.
3) To understand the social & economic characteristics of the customers preferring e- banking.
4) To recognize the reasons for preferring e- banking.
5) To discover the opinion of the respondents with respect to the various issues of E-banking.
6) To give significant suggestions to improve awareness and satisfaction about e- banking
services.

Hypotheses Sets

Hypothesis set 1

H0 - Consumers are not aware about the electronic banking services offered by State Bank of India.

H1- Consumers are aware about the electronic banking services offered by State Bank of India.

Hypothesis set 2

H0 - Socio- economic characteristics of the consumers do not influence their preference for e-
banking services offered by SBI.

H1- Socio- economic characteristics of the consumers influence their preference for e-banking
services offered by SBI.
 6

Research Design

The research design used to study the consumer awareness towards electronic banking services
offered by State Bank of India was a combination of exploratory and descriptive research.

Methods of Data Collection

The primary data collection method used was survey, instrument used was questionnaire.

The secondary data collection method used was the website of the State Bank of India, research
papers and other websites. The data collection was aimed at study of the consumer awareness
towards electronic banking services offered by State Bank of India.

Tools Applied

The questionnaire was tested using reliability testing. Then we started analyzing by describing
the sample. Hypotheses testing was done on the basis of the findings from data analysis.

Period of Study:

This study covers a period from January 2020 to March 2020.

Scope of the Study:

The present study was meant for studying various electronic banking services offered by State
Bank of India. Also it studied the consumer awareness towards electronic banking services offered
by State Bank of India and their satisfaction & perception about those services.

Planned for Data Analysis

Data was gathered from organization’s website, research papers and questionnaire. The
sample chosen consisted of 100 respondents who represented banking customers of SBI. The data
collected from the primary source was analyzed using reliability testing.
 7

LITERATURE REVIEW

1. Banking System and the Internet

The Internet usage has increased in the recent years due to the astounding advancements in
the technology. The impact of the technological advancements have revealed that the
technology has affected in all aspects of the common people’s life. The complicated tasks are
handled easily by the electronically handling capability of technologically advanced devices.
The Internet can reduce the time and distance to perform the important transactions hence
treated as a global trend. There has been a leap transformation of internet banking from
conventional banking.
These days the banking sector is able to provide various services to the consumers through
effective use of the internet. This has provided the advantages in two folds that are for bank as
well as for the customers. The banks have emerged in to high end technological service
providers so as to develop the services to eliminate the banking concerns. They focus on the
needs and requirements of clients. The current banking sector is exploiting technologies and
expertise to make the complication and concerns of conventional banking plan to much easier
and easily accessible by the consumers. The electronic banking initiated with the ATMs.
Presently the trend has emerged to carry out the transactions through mobile phone, through
internet, direct bill payment, electronic fund transfer etc. The transactions in the e- banking
have security options along with the confidentiality in transaction. This has led to the
importance of Internet banking in the current day.
Tolani, (2012). “Internet banking- An essential feature.” NIN, Bangalore. In his research paper
he has stated that Internet banking is a process that enable banking customers to access their
accounts and general information on bank products and services through bank’s website,
without the involvement or difficulty of sending letters, fax, original signatures and telephone
confirmations.
The increasing growth of the internet creates many opportunities for new businesses as well

as it requires a new way of imaging the market place for the community banker. Experts have
estimated that the number of consumers using internet banking will increase by 20 fold by the
end of the century.

Mr. Vijay P Gupta & Dr. P. K. Agarwal (2014). “Comparatiive Study of Customer Satisfaction
in Public Sector and Private Sector Banks in India”. This paper gives with the introduction of
liberalisation policy and RBI's easy rules & norms. Several private & foreign banks have
entered in the Indian banking sector. This has given lead to cut throat competition amongst
several banks for acquiring large customer base and market share. Banks have to deal with
ample customers and offer various types of services to its customers. If the customers are not
satisfied with the services provided by the banks then they will defect which will affect
economy as a whole since banking system plays an crucial role in the economy of a country.
Also it is very costly and tough to recover a dissatisfied customer. Since the competition has
grown many times in the recent times it has become a tedious task for organizations to build
trust, the reason being that the customer of today is spoilt for choice. It has become important
for both public and private sector banks to perform best to retain their customers by catering
all needs.

2. Electronic Banking

E- Banking means providing banking products and services through electronic delivery
channels like internet, automatic teller machines (ATM), telephone or wireless communication
network. E- Banking enables the banking customers to manage their banking transactions
without even visiting the bank.
 9

Figure 1: Flow chart of E- commerce

Electronic banking is primarily carried out by means of the internet. Internet banking is a subset
of e- banking.
E-banking is an easy, secured, fast, and efficient electronic service that allows you to access
your bank account, carry out online banking services, 24 hours per day, and 7 days a week.
By carrying out banking transactions at any time and place, banking customers can save their
time and cost. E- Banking enables the given services:
1. National or international fund transfer in various currencies.
2. Check mini statement, balance.
3. Execution of various bill payments (telephone, electricity, water etc).
4. Electronic confirmation for e- payment.
Electronic banking is also known as Electronic Funds Transfer (EFT). It simply uses electronic means
to transfer funds from one to another account rather than doing it with the help of cash or cheque.
You can use EFT to:

1. Withdraw money from savings or current account through ATM at any time.
2. Instruct bank to pay monthly bills from your account automatically.
3. Make payments for mutual fund account, demat account.
10
4. Purchase goods, groceries etc.

Joseph, (2013). “E- banking services and its uses.” December, pp. 5-6. have stated that the internet
deals with a massive range of varied financial transactions like customer- payments, securities
transactions applications for loans or coverage acquisitions. There are security risks concerned with
financial transactions done through the internet. Today, diverse techniques and standards are presented
so as to manage or maybe avoid those dangers. Basic necessities are as follows: there should be an
authentication process between a customer and financial group; crucial data must be encoded.
Cryptographic algorithms should be used to do so; any unauthenticated user or third party should not
be allowed to access the bank messages like an OTP; a digital signature is important to secure the
integrity of signed files.

3. Electronic Banking Services

Electronic banking services are often referred to as “Enjoy anytime, anywhere banking” since with
the help of an internet connection you can manage your bank account and transactions.
Following are the types of e- banking services:

Autobank
services

Online E- Telephone
banking banking banking
services services services

Internet
banking
services
Figure 2: Types of e- banking services

3.1 Auto- bank services:

Busy people like business owners cannot afford to spend too much time in banking matters. Fortunately
various time-saving electronic solutions are offered by banks nowadays .
11
Anybody can have access to electronic banking services. In each city the different banks provide
electronic facilities for the benefit

of their customers. Also the bigger garages offer automatic banking facilities, called auto- banks,
where people can carry out their banking without queuing inside the bank. The following
transactions can be carried out at an auto- bank:
1. Withdraw cash
2. Deposit of money or cheques
3. Balance enquiry
4. Mini-statements
5. Make account transfers

3.2. Online Banking Services

This service enables us to conduct banking from the comfort of your home or office.

Cell Phone Internet Services allows you to access the bank’s mobile phone banking service via the
Internet using your mobile phone. The following transactions can be done:

1. Balance enquiries
2. Account payments
3. Inter-account transfers
4. Get mini-statements
5. Recharge Vodacom prepaid airtime or MTN
6. Increase/ decrease our overdraft limit

3.3. Telephone Banking Services

Our telephone gives us access to our bank accounts 24 hours a day, seven days a week. You can
do your banking from your place. After registering for telephone banking services, you can:

1. make accounts payments

2. transfer money
3. receive fax confirmation of transactions
4. receive copies of our statements
 5. get balance enquiries our linked accounts
6. increase/ decrease overdraft limit
7. recharge prepaid airtime on cell phones or MTN

12

3.4. Internet Banking Services

This service provides you with access to your personal and business accounts online, anytime,
anywhere.

The service is available for seven days a week, 24 hours a day. It gives you the freedom to select
your own banking hours, giving you greater control of your finances. It’s safe, fast and easy to use.

This system offers you the following facilities:

1. obtain provisional statements
2. make accounts payments
3. make inter-account transfers
4. refrain debit orders/ cheques

4. Electronic banking services offered by State Bank of India

State Bank of India is an India's largest bank. It has a network of over 13000 branches and 5
associate banks located in the remote parts of India. A wide range of banking products and services
are offered to corporate and retail customers by SBI.

Bank of Bengal which was previously known as Bank of Calcutta, was established on 2 June 1806
while SBI originated in the early 19th Century. At that time there were 3

Presidency banks in India, first was the Bank of Calcutta, second was the Bank of Bombay,
established on 15 April 1840 and third was the Bank of Madras, founded on 1 July 1843. These
were the result of the royal charters established in the form of Joint Stock Company. Till the
formation of RBI in 1861, Presidential Banks got the exclusive rights to issue banknotes under a
Paper Currency Act on 27 January 1921.
After that all the Presidency Banks were affiliated to form the Imperial Bank of India. It was also
embodied as a Joint Stock company. In accordance with the provision of the State Bank of India
Act (1955) the RBI acquired a control in the Imperial Bank of India.

The Imperial Bank of India was renamed as State Bank of India on 30 April 1955.

In order to avoid the conflict of operating interests as it was the regulatory authority in Indian
Banking, government of India acquired the RBI’s stake in SBI

Government of India passed the State Bank of India Act in 1959 in order to enable the SBI to take
over 8 former banks (state- associated) as its subsidiaries.

13

The State Bank of Saurashtra incorporated in SBI on 13 September 2008. SBI has amassed local
banks in rescues. In 1985, SBI acquired the Bank of Cochin (Kerala), it had 120 branches.

The State Bank of Travancore, already had an extensive network in Kerala. It was an affiliate of
State Bank of India.

SBI is the largest financial services & banking company in India depending on the total turnover
and total assets. It has its head quarter in Mumbai, India. It is a banking institution owned by state.
With 60% stake of RBI in the Imperial Bank of India, the government of India nationalized it and
re- named it as the State Bank of India in 1955. The government of India took the RBI’s stake in
SBI in 2008.

SBI has a vast range of banking products. It caters its customers in India and overseas through its
large & intensive web of branches. It has the largest banking branch network with over 17000 bank
branches in India and 140 branches abroad. It has 14 head offices and 56 zonal offices located in
the big cities all over the India.

SBI being one of the largest financial institution has an asset base of $353 billion and $286 billion
deposits around the earth. It acquired 20.2 % market share in loans and deposits among the Indian
commercial banks.

Amruta Raj, (2013) “A Study on Customer mindfulness of Commercial Banks: Case Study on
StateBank of India”. This paper presents customer mindfulness, a term frequently used in
marketing branch, is a measure of how products and services supplied by a company meet or
exceed 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, which
almost immediately became the Bank of Bengal. This was one of the three presidency banks, the
other two being the Bank of Bombay and the Bank of Madras, all three of which were established
under charters from the British East India Company. For many years the Presidency banks acted
as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial
Bank of India.

14

In an annual survey conducted by Forbes, SBI is at the 29th position in the list of most reputed
companies around the globe. SBI is the only bank featured in the “top 10 brands of India” in 2011,
according to Brand Finance and The Economic Times.

Being the largest bank of India, SBI’s competitors are ICICI Bank, PNB and HDFC Bank.

With the name of “Online SBI”, SBI provides its e-banking service. Online SBI provides
‘anywhere anytime’ banking to its banking customers (retail and corporate). The unified and
secured infrastructure of SBI provides a support to e-banking to access banking services for various
accounts in over 14,000 branches all over India.

Various retail financial services are offered by e- banking facility of SBI.

Few of them are mentioned below:-

1. Customers can issue demand drafts online

2. Customers can transfer their fund to own account or other’s accounts

3. Using Real Time Gross Settlement and National Electronic Funds Transfer feature
customers can credit beneficiary accounts

4. Customers can generate mini statements & account statements

5. Customers can setup few standing instructions

6. Customers can edit or configure their profile settings

 7. Using e- Tax service customers can pay tax online

8. Using e- Pay customers can make bill payments

9. Customers can do railway and airline reservations online

10. Customers can use DEMAT and IPO services

11. Customers can pay their Credit Card bills.

The e- banking services of SBI provides different online administrations to its corporate customers.
They are as follows:

15

1. With the help of a single sign-on mechanism customers can access accounts in several
branches
2. Customers can upload many files to make transactions to others like suppliers, vendors
and tax collectors.
3. Customers can transfer fund to their accounts or others accounts
4. Customers can make online bill payments.
5. Clients can approve, alter, reschedule and drop exchanges dependent on rights doled
out to the client
6. Customers can generate mini statement and account statements
7. Customers can enquire about transaction details & current balance

SBI provides following value added services in addition to the above mentioned e-banking
services:

1. Through site to site integration it provides tax payments service to central and state
governments
2. Finance service to supply chain like for instance Electronic Vendor Finance Scheme
(e-VFS)
3. Debit Facility to the clients
4. Electronic Collection Facilities for:
a. Main (core) Banking Transactions
 b. Inter Bank Transactions for incoming Real Time Gross Settlement and
National Electronic Funds Transfer Transactions
c. For SBI & Associate Banks ( e- transaction collection)
d. Through E-Banking’s “Direct Debit” feature, the suppliers can straight
away debit their customer’s account

Online SBI internet banking for (blind) visually challenged people:

In order to navigate the SBI site the following access keys details are used by visually challenged
people:-

a) To lock Internet access to your accounts press Alt 0

b) To view Help press Alt 1
c) To Login press Alt 2
16
d) To view Instruction press Alt 7
e) To view FAQ press Alt 8

To access the Post Login pages the following shortcut keys are used:-

a) For Account Summary press Alt 3

b) For transfer funds press Alt 4
c) For Changing your Password press Alt 5
d) For Transaction Summary page press Alt 6
e) For Bill Payment page press Alt b
f) For Profile page press Alt g
g) To view FAQ press Alt 8
h) To Logout press Alt 9

4.1 Secure Card Transactions

State Bank of India provides the following given services for safe and secure paperless banking
transactions:
1) State Bank (ATM) Automatic Teller Machine- cum- Debit Card:

State Bank of India offers State Bank ATM- cum- Debit card. There is no need to
carry cash in the wallet with this debit card. Customers can withdraw cash and make
 payment for purchases anytime with their ATM- cum- Debit card. Customers can
use this card to transact for free at any of over 30,000 ATMs of any bank in (Visa)
State Bank Group within the country.

2) Verified by Visa (VBV):

VBV is an easy to use, safe online payment service of State Bank of India (in
association with Verified By Visa).
It allows the banking customers having SBI Visa debit card to shop securely online.
Through a simple check- out process, this service authorizes the identity when
customers make a purchases online.
VerifiedVerified By VISA Service allows banking customers to create a password.
This password protects their online transactions in the similar way customers use
their PIN or OTP at the ATM.
17
3) Maestro Card/Master Card Secure Code:
Master Card Secure Code is a new service from State Bank of India, in association
with MasterCard. It allows its customers to shop online safely using their State Bank
of India Debit Card. This card may be used only on merchant websites that
subscribe to services of "Master Card Secure Code"
This service authorizes the customer’s identity through a simple check out process
when they shop online. Customers are allowed to create a password using Secure
Code Service. This password protects their online transactions.

4) Bill Payment
SBI electronic- PAY is a commodious and simple service. It is used by customers
for receiving and paying their bills online. It provides following advantages to the
customers:
1. Make payment easily in no time therefore no late payments
2. Make payment online hence no need to stand in queues
3. Make payment directly online hence no chaos of depositing cheques

5) Online Pay:
 SBI e-PAY can be used by customers to 'see and then pay' their bills online. Bill
payment is done directly from their SBI Account. Customers can pay insurance,
telephone, credit card, electricity, water and other bills from any place like home or
office, at any time 24 hours per day, 365 days in a year from their comfort.
Customers have to simply logon to https://www.onlinesbi.com/ for this to pay their
bills.

For every e- payment of a bill, SBI e- PAY also offers its customers with an
electronic acknowledgment.

6) Auto- Pay:

Customer can use Auto- Pay to pay their bills automatically whenever they are due.
For this they just have to set up an Auto- Pay instructions with an upper limit to
guarantee that their bills are paid automatically when they are due.

18

This upper limit assures that only bills within the specified limits are paid automatically. This
service provides customers complete control over these payments.

In various cities across the country, the e-PAY service is available. Using this service customers
can now make payments to billers in the region.

To avail this customers have to login to https://www.onlinesbi.com and use the 'Add Biller'
feature and then select the billers customers they wish to make payments to start receiving and
paying the bills online. Customers can also fill up the SBI’s e-PAY Registration Form (SeRF)
available at any of their SBI branch and submit it to the concerned authority in the branch.

Nishant Malik, Chand Prakash (July 2012). In their research titled on “Private Sector Banks
Service Quality and Customer Satisfaction- an Empirical Study on 2 Private Sector Banks”.

This research paper examines the relationship between service quality and customer satisfaction of
2 private sectors banks in India. Service quality has been described as a form of attitude that comes
from the comparison of prospect with recital.
Cronien and Taylor (2009) in their research paper “Customer’s Preference for Service Quality in
E- Banking.” stated that customers compare the expected service t with perceptions of the services
they actually receive while evaluating the quality of service. Since financial products provided by
many banks are similar by nature then why any particular bank’s product is preferred than others
a matter of interest for researchers as well as banking industry. There may be a difference between
customers of both public and private sector banks, but why 2 banks of one sector are is preferred
differently by customers. This research study was an effort to discover out the answer to these
questions.

Vijay Kumbhar (2016). “Factors Impacting the Customer Satisfaction In E-Banking: Some
evidences From Indian Banks.” This study evaluates major factors like service quality, perception
of brand affecting customers’ satisfaction in e-banking service settings. This study also discovers
the influence of service quality on perception of brand, value perceived and satisfaction in e-
banking. Data was collected through customers’ survey and interview. For conducting customers’
survey questionnaire was developed after review of literature and discussions with bank managers,
experts in customer service and marketing department. Collected data was analyzed using principle

19

component (PCA) using SPSS 22.0. A result indicates that value perceived, Brand Perception, low
cost, easy usage, issues handling, safety and responsiveness are important factors in customers
satisfaction in e-banking because these dimensions explain 43.0 percent of variance. Contact
Facilities, System Availability, mindfulness, efficiency and free gifts are comparatively less
important because these dimensions explain 21.80 percent of variance in customers’ satisfaction.
Safety, responsivness, easy usage, low cost and compensation are predictors of brand perception
in e-banking and satisfaction.

Rakesh Moti & Ramya Rangrajan (2014). “A Study on Factors Impacting Consumer Adoption of
Internet Banking in India.” In their research paper they tried to examine the factors that impact
internet banking adoption. Using PLS, this is successfully proved that internet banking is
influenced by its reliability, ease of use and usefulness. In the marketing process of internet banking
services expert should stress these benefits its adoption provides. Awareness can also be improved
to attract consumers towards internet banking services.

Pooja Malhotra & B. Sigh (2009). “The Effect of Internet Banking on Bank Performance and Risk:
The Indian Experience.” This paper describes the current situation of Internet banking in India. It
also discusses its implication for the Indian banking industry. It tries to examine the effect of
Internet banking on bank’s performance and risk. Using information drawn from the survey of 87
scheduled commercial bank’s websites, during the period of June 2008, the results show that nearly
58% of the Indian commercial banks are providing Internet banking services. The analysis
indicates that Internet banks are larger banks and have high efficiency ratios and profitability as
compared to that of non-Internet banks. Internet banks depend more heavily on deposits for funding
than non-Internet banks do. However, the multiple regression results show that the profitability
and offerings of Internet banking does not have any important association, on the other hand,
Internet banking has an important & non positive association with risk profile of the banks.

20

METHODOLOGY
UNIVERSE:
Banking customers

TARGET SAMPLE:
Banking customers who are the account holder of SBI.

SAMPLING METHOD:
We will use Probability Sampling because
1. Sampling frame is available.
2. Homogeneity is more as compared to heterogeneity.
3. The density of sample population is high.
SAMPLING PROCEDURE:
In this method we will apply Simple Random Sampling.

SAMPLE SIZE:
Sample size for this research will be 100 banking customers.

DETAILS OF SAMPLE:
1. Bank Account holders

DETERMINING SAMPLE SIZE

FORMULA:

In order to determine the sample size we are using the following formula:

21

n= (Z*S/E)*(Z*S/E)

Where,

n= Number of elements (Sample size)

E= Tolerance Limit

S= Standard Deviation

Z= Accuracy

CALCULATIONS:
 E= 5%

Z= 95%

S= 0.5

n= (Z*S/E)*(Z*S/E)

n= (1.96*0.5/0.05)* (1.96*0.5/0.05)

n= 96.04

Hence, Sample Size is 100 banking customers

22

DATA COLLECTION
The data has been collected from both primary as well as secondary source.

Secondary Data

It is defined as the data collected earlier for a purpose other than one currently being pursued.
As a research we have scanned lot of source to get an access to secondary data which have formed
a reference base to compare the research findings. Secondary data in this study has provided an
insight and forms an outline for the objective established.

The various source of secondary data used for this study are:

• News paper
• Text book
• Internet.

Primary Data:

The primary data has been collected after the secondary data for meeting the established objectives
to provide the solution for the problem identified in this study.

The methods that have been used to collect the primary data are:

• Method : Survey
• Instrument: Questionnaire

23

DATA ANALYSIS
1. Are you aware about the electronic banking services offered by State Bank of India?

a) Yes
b) No

Table No. 1: Awareness about e- banking offered by SBI

 Awareness Percentage
Yes 100%
No 0%

Source:-Data collection from respondent’s to Q.1

Graph No. 1: Awareness about e- banking offered by SBI

Source:-Data collection from Table No. 1

Finding No. 1: It is revealed that, all of the respondents (100%) are aware about the about the
electronic banking services offered by State Bank of India.

24
2.Age of SBI account holders using its e- banking services
a) Up to 25
b) 26 to 50
c) Above 50
Table No. 02: Age group of Respondents using its e- banking services
Age Percentage
Up to 25 14.3%
 26 to 50 57.1%

Above 50 28.6%
Source:-Data collection from respondent’s age

Graph No. 02: Age group of Respondents

Source:-Data collection from Table No. 02

Finding No. 02: From the above given table it is clear that the majority of the respondents that is
57.1% belong to the age group of 26 to 50 while 28.6% of the respondents belong to the age above
50 and 14.3% of the respondents belong to the age group up to 25.

3. Gender of SBI account holders using its e- banking services

a) Male

b) Female

25

Table No. 03: Gender of SBI account holders using its e- banking services

Gender Percentage
Male 57.1%
Female 42.9%
Source:-Data collection from respondent’s to Q.3

Graph No. 03: Gender of SBI account holders using its e- banking services

Source:-Data collection from Table No. 03

Finding No. 03: From the survey it is revealed that majority of SBI account holders using its e-
banking services are males (57.1%). In the study area the women participation in usage of e-
banking services is lower than the male participation.

4.Educationall qualifications of SBI account holders using its e- banking services

a) Illiterate d) Post Graduate

b) Under Graduate e) Diploma
c) Graduate f) PhD

Table No. 04: Educational qualifications of SBI account holders using its e- banking services

26

Educational Qualification Percentage

Illiterate 10
Under- Graduate 10
Graduate 40
Post- Graduate 10
 Diploma 30
PhD 0

Source:-Data collection from respondent’s to Q.4

Graph No. 04: Educational qualifications of SBI account holders using its e- banking services

Source:-Data collection from Table No. 04

Finding No. 04: It is observed that majority of the respondents that is 40% are graduates while
30% of them have diploma degree, 10% of them are under graduates. 10% of them are post
graduates while rest are PhD holders.

5.Annual Income of SBI account holders using its e- banking services

a) Up to Rs. 1 lakhs
b) Rs 1 lakhs to Rs. 5 lakhs
c) Above 5 lakhs

Table No. 05: Annual Income of SBI account holders using its e- banking services

27

Annual Income Percentage

Up to Rs. 1 lakhs 20%
Rs 1 lakhs to Rs. 5 lakhs 50%
 Above 5 lakhs 30%

Source:-Data collection from respondent’s to Q.05

Graph No. 05: Annual Income of SBI account holders using its e- banking services

Source:-Data collection from Table No. 05

Finding No. 05: From the survey it is observed that majority that is 50% of the respondents have
an annual income between Rs 1 lakhs to Rs 5 lakhs. While 30% of the respondents have an annual
income above Rs 5 lakhs and 20% of the respondents have an annual income up to Rs 1 lakhs.

6.Which factors does motivate you to avail the e- banking services offered by SBI?

a) Time saving
b) Security
c) Easy & Convenient access
d) Cost saving
e) Transparency
f) Control over funds
g) Speed
28
h) Service quality
Table No. 06: Factors attracting the banking customers to use e- banking services of SBI

Factors Percentage

Time saving 90%

Security 20%
Easy & Convenient access
80%

Cost saving 60%

Source:-Data collection from respondent’s to
Transparency 20%
Q.06
Control over funds 30%

Speed 30%
Graph No. 06: Factors attracting the banking
Service quality 50% customers to use e- banking services of SBI

90%
20%
80%
60%
20%
30%
30%
50%

Source:-Data collection from Table No. 06

Finding No. 06: It is revealed that, 90% of sample population are motivated to use e- banking
services offered by SBI due to time saving factor, 80% because of its easy & convenient access,
60% since it is cost saving, 50% prefer because of its service quality. While 30% are motivated
due to factors such as speed & control over funds and 20% due to factors such as security &
transparency.

29
7.What are the issues of e- banking services according to you?
a) Risky
b) High fees ( Internet handling charges etc)
c) Complex to use
d) Lack or less knowledge

Table No. 07: Issues of e- banking services

Profit earned Percentage

Risky 38.5%

High fees 7.7%

Complex to use 23.1%

Lack of or less knowledge 30.8%

Source:-Data collection from respondent’s to Q.07

Graph No. 07: Issues of e- banking services

Source:-Data collection from Table No. 07

Finding No. 07: It is noticed that according to the majority i.e, 38.5% of the respondents, the
biggest issue of e- banking services is the risk followed by (30.8%) lack of or less knowledge,
(23.1%) complexity, high fees.

8.What are your future expectations from e- banking services offered by SBI?

30

a) Reasonable cost
b) Security
c) Expected neither technical intervention nor quality services

Table No. 08: Future expectations from e- banking services offered by SBI

Satisfaction Percentage

Reasonable cost 10%

Security 20%

Expected neither technical intervention nor 70%

quality services

Source:-Data collection from respondent’s to Q.08

Graph No. 08: Future expectations from e- banking services offered by SBI

Source:-Data collection from Table No. 08

Finding No. 08: It is observed that, majority that is 70% of sample respondents stated that they
are expecting their banking transactions to operate in a core banking environment which has
technical intervention like PCs connected providing quality service. 20% of the respondents are
expecting security in e- banking transactions while 10% of the respondents mentioned that bank
should impose reasonable costs on their transactions.

31

9. Are you satisfied with the e- banking services offered by SBI?

a) Yes
b) No
Table No. 09: Satisfaction regarding e- banking services offered by SBI

Satisfaction Percentage
Yes 90%
No 10%

Source:-Data collection from respondent’s to Q.09

Graph No. 09: Satisfaction regarding e- banking services offered by SBI

Source:-Data collection from Table No. 09

Finding No. 09: It is noticed that, out of the total respondents, majority that is 90% of sample
respondents are satisfied with the e- banking services offered by SBI while the rest are not.

10. Satisfaction level regarding the e- banking services offered by SBI.

a) Excellent
b) Very good
c) Good
d) Poor

Table No. 10: Satisfaction level regarding the e- banking services offered by SBI

32
 Satisfaction Percentage
Excellent 70%
Very good 20%
Good 10%
Poor 0%

Source:-Data collection from respondent’s to Q.10

Graph No. 10: Satisfaction level regarding the e- banking services offered by SBI

Source:-Data collection from Table No. 10

Finding No. 10: It is revealed that, 70% of respondents rated the e- banking services offered by
SBI as excellent, 20% rated it as very good while 10% rated it as good.

33
 HYPOTHESIS TESTING

Hypothesis Set 1

H0 - Socio- economic characteristics of the consumers do not influence their preference for e-
banking services offered by SBI.

H1- Socio- economic characteristics of the consumers influence their preference for e-banking
services offered by SBI.

1.Age of SBI account holders using its e- banking services

a) Up to 25
b) 26 to 50
c) Above 50

Table No. 02: Age group of Respondents using its e- banking services
Age Percentage
Up to 25 14.3%
26 to 50 57.1%

Above 50 28.6%

Source:-Data collection from respondent’s age

Graph No. 02: Age group of Respondents

34
Source:-Data collection from Table No. 02

Finding No. 02: From the above given table it is clear that the majority of the respondents that is
57.1% belong to the age group of 26 to 50 while 28.6% of the respondents belong to the age above
50 and 14.3% of the respondents belong to the age group up to 25.

This indicates that the adult population is much aware about the e- banking services of SBI and
they use those services in their day to day transactions.

3.Gender of SBI account holders using its e- banking services

a) Male

b) Female

Table No. 03: Gender of SBI account holders using its e- banking services

Gender Percentage
Male 57.1%
Female 42.9%

Source:-Data collection from respondent’s to Q.3

Graph No. 03: Gender of SBI account holders using its e- banking services

35
Source:-Data collection from Table No. 03

Finding No. 03: From the survey it is revealed that majority of SBI account holders using its e-
banking services are males (57.1%). In the study area the women participation in usage of e-
banking services is lower than the male participation.

4.Educationall qualifications of SBI account holders using its e- banking services

a) Illiterate d) Post Graduate

b) Under Graduate e) Diploma
c) Graduate f) PhD

Table No. 04: Educational qualifications of SBI account holders using its e- banking services

Educational Qualification Percentage

Illiterate 10
Under- Graduate 10
Graduate 40
Post- Graduate 10
Diploma 30
PhD 0

Source:-Data collection from respondent’s to Q.4

Graph No. 04: Educational qualifications of SBI account holders using its e- banking services
 36

Source:-Data collection from Table No. 04

Finding No. 04: It is observed that majority of the respondents that is 40% are graduates while
30% of them have diploma degree, 10% of them are under graduates. 10% of them are post
graduates while rest are PhD holders. This indicates that the educational qualification of the
banking customers influences their preference for e- banking services of SBI.

5. Annual Income of SBI account holders using its e- banking services

a) Up to Rs. 1 lakhs
b) Rs 1 lakhs to Rs. 5 lakhs
c) Above 5 lakhs

Table No. 05: Annual Income of SBI account holders using its e- banking services

Annual Income Percentage

Up to Rs. 1 lakhs 20%
Rs 1 lakhs to Rs. 5 lakhs 50%
Above 5 lakhs 30%

Source:-Data collection from respondent’s to Q.05

Graph No. 05: Annual Income of SBI account holders using its e- banking services
 37

Source:-Data collection from Table No. 05

Finding No. 05: From the survey it is observed that majority that is 50% of the respondents have
an annual income between Rs 1 lakhs to Rs 5 lakhs. While 30% of the respondents have an annual
income above Rs 5 lakhs and 20% of the respondents have an annual income up to Rs 1 lakhs. This
indicates that the annual income of the banking customers influences their preference for e-
banking services of SBI.

Conclusion: From above findings we conclude that, Socio- economic characteristics of the
consumers influence their preference for e-banking services offered by SBI. Hence, WE
ACCEPT H1 and REJECT HO.

Hypothesis Set 2:

H0 - Consumers are not aware about the electronic banking services offered by State Bank of India.

H2- Consumers are aware about the electronic banking services offered by State Bank of India.

6. Which factors does motivate you to avail the e- banking services offered by SBI?
 38

a) Time saving
b) Security
c) Easy & Convenient access
d) Cost saving
e) Transparency
f) Control over funds
g) Speed
h) Service quality

Table No. 06: Factors attracting the banking customers to use e- banking services of SBI

Factors Percentage

Time saving 90%

Security 20%
Easy & Convenient access
80%

Cost saving 60%

Transparency 20%

Control over funds 30%

Speed 30%

Service quality 50%

Source:-Data collection from respondent’s to Q.06

Graph No. 06: Factors attracting the banking customers to use e- banking services of SBI
 90%
20%
80%
60%
20%
30%
30%
50%

39

Source:-Data collection from Table No. 06

Finding No. 06: It is revealed that, 90% of sample population are motivated to use e- banking
services offered by SBI due to time saving factor, 80% because of its easy & convenient access,
60% since it is cost saving, 50% prefer because of its service quality. While 30% are motivated
due to factors such as speed & control over funds and 20% due to factors such as security &
transparency.

This indicates that the banking customers are aware about the advantages of e- banking services.

01. Are you aware about the electronic banking services offered by State Bank of India?

a) Yes
b) No

Table No. 01: Awareness about e- banking offered by SBI

Awareness Percentage
Yes 100%
No 0%

Source:-Data collection from respondent’s to Q.01

Graph No. 01: Awareness about e- banking offered by SBI

 40

Source:-Data collection from Table No. 01

Finding No. 01: It is revealed that, all of the respondents (100%) are aware about the about the
electronic banking services offered by State Bank of India.

Conclusion: From the above two finding, Consumers are aware about the electronic banking
services offered by State Bank of India. Hence, WE ACCEPT H1 and REJECT H0.
 41

LIMITATIONS

Every coin has two sides in the same way during our project analysis; we also came across such
things that created problem for us.

These are listed below:-

1) The first problem we faced is in getting the co-operation of the banking customers. Many
of the respondents we approached did not agree to the need and utility of the project and
hence did not agree to provide us with information.
2) The behavior of the respondents is unpredictable which may result in the lacking of
accuracy in the data.
3) As the sample size of the survey was so small and comprise of only 100 banking customers,
the results may have some errors.
4) Study accuracy totally based upon the respondents response.
5) Stipulated short span of time for survey.
 42

FINDING
1. All of the respondents (100%) are aware about the about the electronic banking services
offered by State Bank of India.

2. The majority of the respondents that is 57.1% belong to the age group of 26 to 50 while
28.6% of the respondents belong to the age above 50 and 14.3% of the respondents belong
to the age group up to 25.

3. The majority of SBI account holders using its e- banking services are males (57.1%). In the
study area the women participation in usage of e- banking services is lower than the male
participation.
4. The majority of the respondents that is 40% are graduates while 30% of them have diploma
degree, 10% of them are under graduates. 10% of them are post graduates while rest are
PhD holders.
5. The majority that is 50% of the respondents have an annual income between Rs 1 lakhs to
Rs 5 lakhs. While 30% of the respondents have an annual income above Rs 5 lakhs and
20% of the respondents have an annual income up to Rs 1 lakhs.
6. 90% of sample population are motivated to use e- banking services offered by SBI due to
time saving factor, 80% because of its easy & convenient access, 60% since it is cost saving,
 50% prefer because of its service quality. While 30% are motivated due to factors such as
speed & control over funds and 20% due to factors such as security & transparency.
7. The majority i.e, 38.5% of the respondents, the biggest issue of e- banking services is the
risk followed by (30.8%) lack of or less knowledge, (23.1%) complexity, high fees.
8. The majority that is 70% of sample respondents stated that they are expecting their banking
transactions to operate in a core banking environment which has technical intervention like
PCs connected providing quality service. 20% of the respondents are expecting security in
e- banking transactions while 10% of the respondents mentioned that bank should impose
reasonable costs on their transactions.
9. Out of the total respondents, majority that is 90% of sample respondents are satisfied with
the e- banking services offered by SBI while the rest are not.

10. 70% of respondents rated the e- banking services offered by SBI as excellent, 20% rated
it as very good while 10% rated it as good.

43

SUGGESTIONS

1. In order to promote e- banking, demonstration should be provided to the existing banking

customers about how to use those services of e- banking.
2. Encourage banking customers to use e- banking services by providing various offers,
discounts on shopping, online purchase or payment.
3. Explain the customers that e- banking is totally safe if you take precautions like protecting
your PIN, OTP or password from others.
 44

CONCLUSION

The research study report is based on primary data. According to the research, we conclude that
most of the banking customers are aware about electronic banking services offered by State Bank
of India. Further State Bank of India has to take necessary steps to educate the customers about the
latest technology in the bank, services offered by the bank. In order to educate them, State Bank of
India can setup customer meeting time with bank officials. This will require a friendly approach.
It will definitely help to retain the existing bank customers. Also it will attract new customers.
These things will lead to the improvement of the banking service. It will also help in the
development of State Bank of India. This research report is useful to know the consumer awareness
of e-banking services offered by State Bank of India.
 45

BIBLIOGRAPHY

1. Tolani, (2012). “Internet banking- An essential feature.” Volume 5, Number1.

NIN, Bangalore
2. Herrera (2001). “The Economics of an Online Banking.” February, pp: 67
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4. Joseph, (2013). “E- Banking services and its uses.” December, pp. 5-6.
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6. Nishant Malik, Chand Prakash (July 2012). “Private Sector Banks Service Quality and
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7. Cronien and Taylor (2009). “Customer’s Preference for Service Quality in E- Banking.”
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8. Pooja Malhotra & B. Sigh (2009). “The Effect of Internet Banking on Bank Performance
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 9. Rakesh Moti & Ramya Rangrajan (2014). “A Study on Factors Impacting Consumer
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evidences From Indian Banks.”pp: 13
11. Cronien and Taylor (2009). “Customer’s Preference for Service Quality in E-
Banking.”Vol 11

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1. https://retail;.onlinesbi.com/retail/login.htm
2. https://www.sbi.co;.in/portal/web/services/internet-banking
3. https://www.thestatebankgroup.;com/
4. https://duec.com/ebank/
5. http://www.ilo.org/wcmsp5/groups/public/---dgreports/---
stat/documents/publication/wcms_234413.pdf
6. http://in.biz.yahoo.com/100620/50/bavtdq.html
7. http://www.ghmc.gov.in/downloads/chapter%205.pdf
46
8. http://www.ncbi.nlm.nih.gov/pubmed/11027035
9. http://www.fsis.usda.gov/pdf/slides_092806_vrao.pdf
10. http://www.ajofai.info/
11. http://timesofindia.indiatimes.com/articleshow/5875162.cms
12. http://www.fao.org/docrep/u3550t/u3550t08.htm
47