Impact of Mobile Banking Application On Financial Performance of Indian Banks"

A
PROJECT REPORT
ON
“IMPACT OF MOBILE BANKING APPLICATION ON FINANCIAL PERFORMANCE

OF INDIAN BANKS”
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF DEGREE OF
MASTERS OF BUSINESS ADMINISTRATION
SUBMITTED BY:
BHAVNA RATHWA
211
S.Y. MBA
UNDER THE GUIDENCE OF:
Dr.VATSAL PATEL
SUBMITTED TO:
Department of Business and Industrial Management
VEER NARMAD SOUTH GUJARAT UNIVERSITY
SURAT
ACADEMIC YEAR: 2020-21

I
IMPACT OF MOBILE BANKING APPLICATION ON FINANCIAL PERFORMANCE OF INDIAN BANKS
INDEX
Chapter Number Topics Page Number

DECLARATION I
ACKNOWLEDGEMENT II
EXECUTIVE SUMMARY III
1 INTRODUCTION 1
1.1 LITRATURE REVIEW 8
2 METHODOLOGY OF THE STUDY 11
2.1 RESEARCH OBJECTIVE 12
2.2 RESEARCH DESIGN 12
2.3 NATURE OF THE DATA 12
2.4 SAMPLE SIZE 12
2.5 DATA COLLECTION 13
2.6 LIMITATION OF WORK 13
3 DATA ANALYSIS 14
FINDINGS 40
4 CONCLUSIONS 41
MANAGERIAL IMPLICATIONS 43
BIBLIOGRAPHY 44
ANNEXURE 45

I
CERTIFICATE OF DEPARTMENT
To whomsoever it may concern
This is to certify that Miss Bhavna Bhavsingbhai Rathwa has completed her Winter project ar
The department of business and industrial management (VNSGU, Surat) as a part of MBA
Curriculum. She has undertaken and successfully complited a project on “IMPACT OF
MOBILE BANKING APPLICATION ON FINANCIAL PERFORMANCE OF INDIAN
BANKS” under my guidance. Her work is found to be the standard required for winter training
of MBA curriculum.

I
DECLARATION
I Bhavna Rathwa, hereby declared that the project report entitled- “Impact Of Mobile Banking
Application On Financial Performance Of Indian Banks” under the guidance of Dr.Vatsal Patel
submitted in partial fulfillment of the requirements for the award of the degree of Masters of
Business Administration to Veer Narmad South Gujarat University, Surat is my original work –
research- study carried out during fourth semester (2020-21) and not submitted for the award of
any other degree of any other institution/organization of University .
BHAVNA RATHWA
ROLL NO.: 211

II
ACKNOWLEDGEMENT
We all know that without inspiration and guidance, nothing can be done properly. I Rathwa
Bhavna take this opportunity to thank all those who have inspired me, supported me and advised
me during the entire project.
First of all, I would like to thank Veer Narmad South Gujarat University and Department of
Business and Industrial Management for providing me a golden opportunity to make a project
on “IMPACT OF MOBILE BANKING APPLICATION ON FINANCIAL PERFORMANCE
OF INDIAN BANKS”.
The task of preparing a report could never be accomplished without the guidance and
cooperation of respected faculty. I am truly thankful to my guide Dr.Vatsal Patel for giving me a
unique and excellent opportunity to work on this project and also for his time to time guidance
and constant support and encouragement throughout the course.

III
EXECUTIVE SUMMARY
→ This study is for providing an analysis of the impact of mobile banking in financial
performance of Indian banks.
→ It is analyzing in depth previous studies to review the effect of mobile banking in
financial performance of bank.
→ Quantitative research method such as questionnair prepared research questions in order to
generate primary data.
→ Further more, the study tackled on secondary data for attaining the objective of the study.
→ The questionnaire were distributed to all users of mobile banking App.
→ On the bases of data collected and interpreted, a number of findings and conclusions were
made and presented.
→ Some of which include fund transfer between accounts, bill payments, order for cheque
books, bank statements, mobile money and cash on mobile etc. These mobile banking
products were found to have increased the profit of Indian banks in different sectors.
→ The purpose of this study is to explain the methodology adopted to achive the objective
of the study was collected from both primary and secondary sources.
→ The data collected through questionnair were analyzed and interpreted by using SPSS
software.

1
CHAPTER 1
INTRODUCTION

2
Mobile Banking Apps

Mobile banking is very convenient in today’s digital age with many banks offering impressive
apps. The ability to deposit a check, to pay for merchandise, to transfer money to a friend or to
find an ATM instantly are reasons why people choose to use mobile banking. However,
establishing a secure connection before logging into a mobile banking app is important or else a
client might risk personal information being compromised.
Mobile banking started in India in 2002, and back then, transactions were carried out through
SMS. Today, almost all banking transactions can be performed using a computer, laptop or a
smartphone. Everything from checking account statements to paying credit card bills, utility bills
and transferring funds can be done online.
Mobile banking began as an offshoot of internet banking to further aid convenience and ease of
access. In 2018, almost all banks have mobile phone applications for financial transactions.
These apps remove the requirement of having a computer or laptop to transfer funds, and with
continued advancements, have made visits to the bank a rarity. Once a customer has downloaded
the mobile banking app on their smartphone, banking transactions can be carried out as per their
convenience.
In 2008, ICICI Bank was the first bank to launch mobile banking in India. Since then, almost all
banks have followed suit.
HDFC Bank Mobile Application
HDFC Bank is one India’s largest banks. Its mobile banking app allows its customers to view
their account summary, transfer funds, make credit card payments and pay utility bills. HDFC
Bank’s mobile application has a 4.2-star rating on the Google Play Store and has over 1 million
downloads. The app allows its users to customize the “My Menu” tab on the app, where the most
frequently used services can all be available in the same tab.
HDFC’s mobile banking app is also available in Hindi and has a “LITE” version that is
compatible with lower internet speeds. While the LITE version does not have all the features of
the regular version, it covers the most frequently used services.
In 2014, the Bank launched its digital banking journey with the tagline 'Bank aapki muththi
mein' from the banks of river Ganga in Varanasi. In the last four years, the Bank has made rapid
strides in leveraging technology for customer use. In 2014, the mobile banking app promised
convenience.

3
ICICI Bank’s iMobile Application
The iMobile app by ICICI Bank is one of the highest rated mobile banking application in India.
The app has a 4.5-star rating on the Google Play Store and has over 10 million installs. The app
allows its users to transfer funds, pay credit card bills, pay utility bills, open fixed deposits and
recurring deposits, and manage Life Insurance policies.
The iMobile app also allows users to locate ICICI Bank ATMs, transfer funds instantly through
UPI payments, and transfer funds to an email id or mobile number. The app is constantly updated
to reflect newer services that the bank offers through the app. Apart from fixing bugs, the most
recent update enables users to check loan eligibility, and avail instant personal loans against their
credit card, and upgrading debit cards.
In addition to the mobile banking app, ICICI Bank has also launched iWear—ICICI Bank’s
smartwatch app. iWear allows users to access their account information through their
smartwatches, including information about their last 3 bank transactions, current balance and
credit card accounts.
Speaking on the initiative, Mr. Anup Bagchi, Executive Director, ICICI Bank said, “ICICI Bank
has always been at the forefront of introducing pioneering innovations. These innovations have
played a key role in transforming the way digital India banks. In line with this rich tradition, we
introduced the country’s first mobile banking app, iMobile, in 2008.
SBI’s Anywhere Personal Application
SBI has a number of banking apps for a variety of services, but Anywhere Personal is the app
that provides the fundamental banking services. The app—formerly called the State Bank
Freedom app—is available in both Hindi and English. The app has a 3.9-star rating on the
Google Play Store and allows its users access to deposits, withdrawals, and a mini-balance sheet.
The app has the mCash feature that allows users to transfer funds to a mobile number or email id.
Customers can also make payments for utility bills, instantly open and close fixed and recurring
deposits, and schedule transactions. The mPassbook option provides customers with information
of the last 150 transactions. The app also allows users the ability to make payments to the SBI
Life premium, and make ad-hoc payments to billers that are not registered on the app.
SBI has also launched a Wear app that provides its users access to their account through their
smartwatches.
YONO was launched on 24 November 2017.
YONO (You Only Need One) is an integrated digital banking platform offered by State Bank of
India (SBI) to enable users to access a variety of financial and other services such as flight, train,
bus and taxi bookings, online shopping, or medical bill payments.
4
Bank of Baroda’s M-Connect Plus Application
The M-Connect Plus app is an upgraded version of Bank of Baroda’s M-Connect app. The app
has a 4.1-star rating on the Google Play Store and is very user-friendly. The app allows users the
ability to transfer funds instantly, pay utility bills and make credit card payments. The app also
allows its users to make cardless cash withdrawals from Bank of Baroda ATMs. The app
provides users with an overall view of their account details and transaction history and also
enables customers to make requests for a new chequebook.
The app’s most recent upgrade focused on bug fixes, adding a list of frequent transactions to the
“Favourites” menu, a graph to depict a mini account statement and enhancing the security of its
users’ accounts.
Perhaps one of the most notable features of the M-Connect Plus app is that it is now available in
7 regional languages, which increases its accessibility among its users across the country.
GoMo – saraswat cooprative bank
“Go-Mo” is a comprehensive Mobile Banking platform that will enable customers to manage
your own accounts with incredible ease from wherever you have mobile connectivity. The
product will give you greater ease of use and a higher degree of convenience through an intuitive
and design rich interface.
GoMo Mobile Banking Facility of Saraswat Bank lets you check the account balance, view mini
statement, transfer funds within or outside Saraswat Bank, request Cheque Book, initiate Stop
Payment instructions, Hotlist Card and more. To use the “Go-Mo” facility, you just need your
Customer Id, Login Pin and Transaction Pin.
You can transact upto Rupees Two Lakhs only per day.
The Bank has taken special efforts to ensure the safety of your accounts by implementing two
factor authentications along with OTP concept for transactions above Rupees Five Thousand as
per RBI guidelines.
Saraswat Co-operative Bank launches “Saraswat Bank 100+ Smart Savings Account App”
MUMBAI, Oct 16:Saraswat Bank has become the first bank in the Co-operative sector to launch
an account opening app, Saraswat Bank 100+.

5
Cosmos cooprative bank

Cosmos Bank presents to you a new age banking with Mobile Banking Application. Now instead
of conventional banking, where you had to go to the bank by yourself to carry out even the
smallest transaction, you just need to login to your Mobile Banking application.
All you need is a smartphone. Mobile Banking of Cosmos Bank (“CosMobile”) is a service of
funds transfers and other requests provided to its customers. With this service, customer can
transfer funds to any other person or directly to account even pay to any merchant. Also with this
service customer can submit multiple requests such as cheque book request, email statement
request, balance Inquiry, mini statement, stop cheque, addition of account, ATM PIN
regeneration request etc.
Cosmos Bank holds its position of being 2nd largest cooperative bank in India. Over the century,
it has strengthened its financial set up through innovative business.
Financial setup of the bank as on 31.03.2019 was ₹ 26,952.20 crore, comprising of deposits of ₹
15,353.04 Crore and advances of ₹ 11,599.16 Crore.
Percentage of digital transaction in India:
• 68 percent of Indian consumers are now using online or mobile banking to

conduct financial transactions. The Covid-19 pandemic is the second largest
situation that has led to a 5% growth in the mobile banking just in a period of

6
3months from January to March 2020(Statista) and is further expected to grow

even more.
Number of mobile banking payments across India from financial year

2013 to 2019(in millions)
Mobile payments growing faster than cards in India
Mobile payments competing with cards Payments handled by mobile devices are soaring in
India, driven by the popularity of bank accounts as an in-app payment method. Unlike Apple Pay
or other mobile wallets that allow customers to make electronic transactions using a linked debit
or credit card, popular payment apps in India promote an alternative to cards. Mobile payments
initiated by payment apps comprising account-to-account transfers and payments made from
stored-value accounts rose 163% to $287 billion in 2019. By comparison, point-of-sale
transactions completed using debit and credit cards, including online and in apps, rose 24% to
$204 billion. While a large number of transactions handled by payment apps include peer-to-peer
transactions, mobile phone account recharges and utility bills, mobile payments are increasingly
becoming a popular payment choice for retail transactions at the point of sale and online.
7
For cashless payments in India, there are plenty of person-to-merchant transactions to chase.
Total retail expenditure online and offline at the point of sale exceeded $806 billion in 2019,
according to 451 Research, which is part of S&P Global Market Intelligence. Much of the
growth potential exists in the form of offline transactions, with in-store sales accounting for more
than 96% of total retail sales in 2019. We estimate that cards and instant interbank transfers
facilitated by mobile payment apps represented only 21% of $781 billion in in-store transactions
in 2019 as cash remains the primary payment method for the majority of merchant payments.

8
LITERATURE REVIEW

9
Mobile Banking Products The terms M-banking, M-payments, M-transfer and M-finance refer
collectively to a set of applications that enable people to use their mobile telephones to
manipulate their bank accounts, store value in an account linked to their handsets, transfer funds
or even access credit or insurance products.These have enhanced accessibility to financial
service in both developed and developing world.
Mobile banking and financial performance Financial institutions have been in the process of
significant transformation. The force behind the
transformation of these institutions is innovation in information technology. Information and
communication technology is at the Centre of this global change curve of mobile and internet
banking. Strategic management in financial institutions demand that they should have effective
systems in place to counter unpredictable events that can sustain their operations while
minimizing the risks involved through technological innovations. Mobile banking applications
are continuously being developed and have now become banks‟ favorite channels for offering
banking services. According to Coelho (2003), one of the main strategies for growth and a major
focus for mobile network providers and the banking industry, is the mobile banking and the
potential it offers in providing various services. For instance, the mobile banking applications
would enable offering of real-time 2-way data transmission, banking services, among other
services (Daniel, 1999).
Mobile banking and Increasing Sales Volume One of the primary tasks of a distribution channel
is to increase the volume of demand for products at profitable prices. This objective is arrived by
increasing operational efficiency so that those losses are minimized that are caused by delays in
catering to customer orders. Furthermore, a favourable reputation of the firm’s logistical
capacities may help generate additional orders. Mobile Banking can contribute to achieve this
goal by following means anytime, anywhere access to banking services.
the literature of mobile app and mobile banking. It shows the tight relationship between the two
constructs. The reader will notice that the literature focuses on the user ratings and reviews but
lacks any examination of the bank’s perspective. Mobile app users typically access their mobile
apps by visiting the “app store” of their phone’s vendor (e.g., Apple, Google, Samsung, etc.). In
addition to providing the ability to download specific mobile apps, such app stores provide
useful descriptive information about the various apps, as well as numeric ratings from users, and
often, qualitative reviews. Khalid, Shihab, and Nagappan.
Explored success determinants of mobile apps. They used data from 300 charts in the App Store
to find that high initial ranking, continuous quality updates, high use volume, and high user
ranking scores are key factors. They considered that the variety of mobile apps would influence
increase in competition because of their offerings (example, using a scan bar code reader app for
price comparison).
The penetration of mobile phones is increasing in developing and poorer nations, where a large
percentage of the global population resides (Kasyoki, 2012). Kasyoki (2012) opined that low-
cost banking and financial services can attract a considerable number of customers who formerly
could be served only at too high a cost. Prior to introduction of M-pesa (m-payment), individuals
used a mixture of informal (such as large buses) and formal channels (mainly commercial banks
and other financial institutions) to transfer money (Ethang’atha et al., 2015). Mobile Banking has
10
also been viewed as a savior for commercial banks in the sense that it presents an opportunity for
banks to retain their existing, technologysavvy customer base by offering value-added,
innovative services and that, it might even help attracting new customers (Krueger, 2001).
Kathuo, Rotich and Anyango (2015) observed that mobile banking has made basic financial
services more accessible by minimizing time and distance to the nearest retail bank branches as
well as reducing the banks own overheads and transaction- related costs. A study by Ethang’atha
et al. (2015) recommended that there is need to reduce the service charges imposed on the M-
Payment services in Kenya, in order to reduce high costs incurred on M-Payment transactions.
Kato, Otuya, Owunza and Nato (2014), established that there was positive relationship between
mobile banking and performance of commercial banks in Kenya. Kathuo et al. (2015) study on
the effect of mobile banking on the financial performance of banking institutions in Kenya,
revealed that the branches have been offering mobile banking services to their clients for the last
five years to offer services such as deposits, withdrawals, ATM withdrawals and fund transfer.
The findings further revealed that the average the volume of mobile-banking transactions on the
services per year for the last five years and those deposits, withdrawals and transfers recorded
were over 30 million in number, while ATM withdrawals recorded were over 45 million in
number.
Security of Mobile Banking and Financial Performance:
Nguyen, Cao, Dang and Anh (2016) found out that security is one of the major considerations by
consumers when deciding to use mobile services and hence concluded that, in order to enhance
trust, service providers should increase services’ security and reliability. Asfour and Haddad
(2014) documented that, security is ensured in MB, as banking transactions are encrypted and the
mobile banking sim card is password-protected. A study by Ahmed et al. (2011) discovered that
security was the most important factor that motivated Chinese consumer adoption of online
banking. The findings of the Federal Reserve Survey (2013) cited in Asfour and Haddad (2014)
lamented that mobile banking does not offer a secure environment that customer always prefer
interface interaction through making transaction besides also posing lack of confidentiality by
not use receipt or signature in any transaction they do. To counter this claim, Omwansa (2009)
proved the security of mobile banking by opining that a lost or stolen mobile phone does not
mean catastrophe as no one can access an M-Pesa account without a correct Personal
Identification Number (PIN). Kathuo (2015) recognized the need for all the commercial banks
need to provide as many mobile banking products as possible. However, the study recommends
that proper caution should be taken to ensure that the services offer adequate customers’ trust,
security as well as their awareness of the M-banking products.
Asfour and Haddad (2014) study on the impact of mobile banking on enhancing customers’ E-
satisfaction, with special focus on the commercial banks in Jordan, recommended that Telecoms
and banks should work hand-in-hand to offer a high quality service whose security can meet
customer satisfaction. The findings of Mbiti and Weil (2011) realized that methods MB users
had started shifting savings from informal tools to M-Pesa perhaps due to the superior security of
MPesa. Kasyoki (2012) researched on the factors affecting adoption of mobile phone banking by
customers of commercial banks in Kenya, and the findings of the study revealed that the
respondents used mobile banking because they found it cheap, safe and reliable to a greater
extent.

11
CHAPTER 2
METHODOLOGY OF THE STUDY

12
2.1 RESEARCH OBJECTIVES:-
• To analyze financial performance indicators of Indian banks before and after adaptation of mobile
banking application system.
• To study perceived utility of various mobile banking services.
• Study the trends in mobile banking in terms of numbers of users and transactions.
2.2 RESEARCH DESIGN:-

This research is descriptive and quantitative in nature as it is studying
the current financial status of the selected banks. Data collected from the financial websites.
2.3 NATURE OF THE DATA:-

For achieving specific objectives of this study, data were gathered from
both primary and secondary sources.
▪ Primary sources:-
→ Opinions about mobile banking application
→ Questionnaire method to gather the information.
▪ Secondary sources:-
→ News articles
→ Industry report
→ Research papers
→ Some relevant study material
→ websites etc.
2.4 SAMPLE SIZE:-

140 is the number of respondents to be selected from the population to constitute
the sample. The method used here is simple random sampling. Where the samples are
selected without considering any particular quality.

13
2.5 DATA COLLECTION :-
• Data collected by the primary data in this used questionnaire.

• A structured questionnaire is a research instrument consisting of a series of questions
and other prompts for the purpose of gathering information from respondents.
• Use google form.
• Also consider secondary data from websites and annual reports.
2.6 LIMITATION OF WORK:-
→ Scope of the project is limited in the sense that only mobile banking App are consider
which may provide by the banks only.
→ Reasons of performance of bank can be any other activity is possible which may not
consider in this project report.
→ Questionnaire methode involves some uncertainty of response.it is possible that the
information supplied by the respondents may be incorrect.
→ Report for Indian banks but as representative in report consider sectors wise bank.
→ Which is public bank, private bank and co-oprative bank. Main focus on public bank and
private bank of India.

14
CHAPTER 3
DATA ANALYSIS

15
India's Public Sector Banks: Return on Assets
India Scheduled Commercial Banks: Public Sector Banks: Return on Assets data was
reported at -0.230 % in 2020. This records an increase from the previous number of -
0.650 % for 2019. India Scheduled Commercial Banks: Public Sector Banks: Return on
Assets data is updated yearly, averaging 0.840 % from Mar 2005 to 2020, with 16
observations. The data reached an all-time high of 1.030 % in 2009 and a record low of -
0.840 % in 2018. India Scheduled Commercial Banks: Public Sector Banks: Return on
Assets data remains active status in CEIC and is reported by Reserve Bank of India. The
data is categorized under India Premium Database’s Banking Sector.

16
India's India Private Sector Banks: Return on Assets
India Scheduled Commercial Banks: Private Sector Banks: Return on Assets data was
reported at 0.510 % in 2020. This records a decrease from the previous number of 0.630
% for 2019. India Scheduled Commercial Banks: Private Sector Banks: Return on Assets
data is updated yearly, averaging 1.130 % from Mar 2000 to 2020, with 21 observations.
The data reached an all-time high of 1.680 % in 2015 and a record low of 0.510 % in
2020. India Scheduled Commercial Banks: Private Sector Banks: Return on Assets data
remains active status in CEIC and is reported by Reserve Bank of India. The data is
categorized under India Premium Database’s Banking Sector.

17
India Public Sector Banks: Return on Equity
India Scheduled Commercial Banks: Public Sector Banks: Return on Equity data was
reported at -4.160 % in 2020. This records an increase from the previous number of -
11.440 % for 2019. India Scheduled Commercial Banks: Public Sector Banks: Return on
Equity data is updated yearly, averaging 14.285 % from Mar 2005 to 2020, with 16
observations. The data reached an all-time high of 17.940 % in 2009 and a record low of
-14.620 % in 2018. India Scheduled Commercial Banks: Public Sector Banks: Return on
Equity data remains active status in CEIC and is reported by Reserve Bank of India. The

18
India Private Sector Banks: Return on Equity
India Scheduled Commercial Banks: Private Sector Banks: Return on Equity data was
reported at 3.300 % in 2020. This records a decrease from the previous number of 5.450
% for 2019. India Scheduled Commercial Banks: Private Sector Banks: Return on Equity
data is updated yearly, averaging 13.700 % from Mar 2000 to 2020, with 21
observations. The data reached an all-time high of 17.180 % in 2000 and a record low of
3.300 % in 2020. India Scheduled Commercial Banks: Private Sector Banks: Return on
Equity data remains active status in CEIC and is reported by Reserve Bank of India. The

19
Banks Return on Equity

10 years 5 years 3 years 1year
BOB 4% 1% 2% 2%
SBI 6% 3% 5% 8%
HDFC 18% 17% 17% 16%
ICICI 11% 9% 9% 13%
[TABLE 3.1]
Retuen on Equity
20%
18%
16%
14%
12% BOB
10% SBI
8% HDFC
ICICI
6%
4%
2%
0%
10 years 5 years 3 years 1year
INTERPRETATION:-
According to the above chart that showing return on equity of public

bank and private bank. Ther is four banks are involved. We can see that 10 years, 5 years,
3 years and last years data. ICICI bank and SBI bank are having good performance. BOB
and HDFC having not big diffrence but compared to all last years HDFC will doing good
performance.

20
NET PROFIT (Amount is in Rs. Crore)
BANK’S NAME 2020 2019 2018 2017 2016
BANK OF BARODA 546 434 -2432 1383 -5396
STATE BANK OF INDIA 14,488 862 -6,547 10,484 9,951
ICICI 7,932 3,363 6,777 9,801 9,745
HDFC 26,257 21,078 17,487 14,550 12,296

[TABLE 3.2]
Net Profit
30000
25000
20000
15000 BANK OF BARODA

STATE BANK OF INDIA
10000
ICICI
5000 HDFC
0
2020 2019 2018 2017 2016
-5000
-10000
INTERPRETATION:-
Net profit showing financial performance trend. Here net profit will
increase showing very high in 2020. That may have any reasons like current pendamic. Overall
performance of HDFC in 2020 is 26,257 crore which is high.

21
Return on Assets (%)

2021 2020 2019 2018 2017 2016
BANK OF BARODA 0.07 0.04 0.05 -0.33 0.19 -0.8
STATE BANK OF 0.45 0.36 0.02 -0.18 0.38 0.42
INDIA
ICICI 1.31 0.72 0.34 0.77 1.26 1.34
HDFC 1.78 1.71 1.69 1.64 1.68 1.73
[TABLE 3.3]
Return on Assets (%)

2
1.5
1 BANK OF BARODA
STATE BANK OF INDIA
0.5
ICICI
0 HDFC
2021 2020 2019 2018 2017 2016
-0.5
-1
INTERPRETATION:-
According to above chart BOB banks return of asset is increased

compare to previously. That is 0.07. retuen on assets also good indicator to measure
financial performance. There is less diffrence are showing in other banks from 2016 to
2021.

22
GROWTH
1999- 2006- 2014-
2000 07 15
BOB 0.072 0.339 1.005
SBI 0.015 0.145 1.337
ICICI 0.063 0.288 0.685
HDFC 0.145 0.145 0.396
[TABLE 3.4]
1.6
1.4
1.2
1
1999-2000
0.8
2006-07
0.6
2014-15
0.4
0.2
0
BOB SBI ICICI HDFC
INTERPRETATION:-
Above chart showing growth of bank after and before mobile

banking adopting period. Service of mobile banking in India start in 2002. 20 years to last
years growth is very high for all banks.

23
PERFORMANCE
2000-01 2006-07 2014-15
BOB 0.099 0.135 0.172
SBI 0.107 0.132 0.181
ICICI 0.185 0.233 0.296
HDFC 0.245 0.255 0.299
[TABLE 3.5]
0.35
0.3
0.25
0.2 2000-01
0.15 2006-07
2014-15
0.1
0.05
0
BOB SBI ICICI HDFC
INTERPRETATION:-
According to the above chart it showing the financial performance of

banks. 2000-01 and above. BOB have 0.099 according to data. That in 2006-07 it is 0.135.
And after that it is increase till now. All bank performance is increased.

24
1] Do you use your cell phone for any financial /banking transaction?
Respondents
Yes 140
No 0
[TABLE 3.6]
usage of banking transaction

0%
Yes
No
100%
INTERPRETATION:-
In that chart we can observe that 100% if respondents are use there cell phones for financial or
banking transaction. Ou t of 140 all are using online transaction through mobile phones.

25
2] Do you use mobile banking service which provided by bank?
Respondents percentage
Yes 95 68
No 0 0
Some time 45 32
[TABLE 3.7]
32%
Yes
68% No
Some time
0%
INTERPRETATION:-
we can see that all respondents are use mobile banking atlist once in there
life . 68% of respondents are using and 32% respondents are prefer to use some time we can say
not regular use of mobile banking which provide by the bank.

26
3] What type of bank do you have a bank account with?
Respondents
private 50
public 60
cooprative 30
[TABLE 3.8]
Respondents
cooprative
public
Respondents
private
0 20 40 60 80
INTERPRETATION:-
There is three types of bank in India. Private bank, public bank and
cooprative bank. In research out of 140 respondents 60 respondents are having bank account
whith public bank. And 50 are having account with private bank. We can say that most of the
individuals are prefer to select private or public bank.

27
4] The period of banking with the bank when using Mobile banking?
Respondents
Less than 3 years 50
3 years to 6 years 53
6 years to 9 years 37
More than 9 years 0

[TABLE 3.9]
Respondents
60
50
40
30
Respondents
20
10
0
Less than 3 3 years to 6 6 years to 9 More than
years years years 9 years
INTERPRETATION:-
According to the chart we can say that most off the respondents are start
using mobile banking around 6 years before. 36% of respondants are using mobile baning less
than 3 years before. That can may happends because of the pandamic of covid-19.

28
5] What are the critical success factors for adopting mobile banking services?
Respondents
Reliability of network 38
Secured systems 107
Support from top management 85
Fast and responsive customer service 76
Promotion of mobile banking with the organization 31
[TABLE 3.10]
Respondents
120
100
80
60
40
20 Respondents
0
INTERPRETATION:-
According to the respondants mobile banking should adopted because of

secured system. There are many other reasons are there for using mobile banking but 77% only
for securities. They belive that they have support from top management. There are 61% are
belive that.

29
6] Has your bank’s performance improved as your mobile banking transactions have
increased?
Respondents
Yes 87
No 20
Maybe 33
[TABLE 3.11]
24%
Yes
No
14% Maybe
62%
INTERPRETATION:-
In chart we can see that 62% are respondents are belive that performance
of bank is improve after some period of time. Where 24% are having no idea about improvement
of bank performance overall. And 14% are not agree about improvement of bank performance.

30
7] How often do you make transaction?
Respondents
Daily basis 21
Weekly basis 45
Monthly basis 58
Occasionally 32
[TABLE 3.12]
Respondents
60
40
20 Respondents
0
Daily basis Weekly basis Monthly Occasionally
basis
INTERPRETATION:-
In this question is about not only transction but also about using other
services which provide by bank. So according to that 41% respondants are using mobile banking
for any transaction on monthly basis. Less persentage of 15% are using daily basis.

31
8] Rate your perceived utility of various mobile banking services. (Rate as per usage) (1-
High use, 5- No use)
Points 1 2 3 4 5
Review account balance 38 61 38 3 0
Recent transaction / mini-
statements 13 49 57 21 0
Review credit card balance 14 54 64 8 0
Status on cheque 9 64 53 12 2
Alert on account activity 11 51 63 15 0
Change of PIN 10 56 64 10 0
Ordering checkbook 14 59 45 21 1
Bill payment 20 65 46 9 0
Access to loan statement 6 50 48 26 10
Fund transfers 43 65 25 7 0
Credit card payment 13 41 68 14 4
Mobile recharging 17 50 54 16 3
Managing loan account 8 46 51 21 14
ATM location 11 49 45 19 16
Mutual fund / equity statement 8 52 31 25 24
E-passbook 16 54 51 13 6
FASTag 26 72 36 4 2
Cash on mobile 42 63 30 5 0
[TABLE 3.13]

32
perceived utility
Cash on mobile
FASTag
E-passbook
Mutual fund / equity statement
ATM location
Managing loan account
Mobile recharging 1
Credit card payment
2
Fund transfers
Access to loan statement 3
Bill payment 4
Ordering checkbook 5
Change of PIN
Alert on account activity
Status on cheque
Review credit card balance
Recent transaction / mini-…
Review account balance
0% 20% 40% 60% 80% 100%
INTERPRETATION:-
According to above chart that showing percived utility of users of

mobile banking. Chart showing that fund transfer having highest usage which is 43
respondents and lowest that showing no use of service which is mutual fund/equity
statement. 24 respondents are there. Normally showing mutual respondents on moderate
use in every service.

33
9] Reasons for not using some of the application service.
Respondents
Lack of knowledge 27
Service is not available 62
No need to use 78
Because of using other application 45
[TABLE 3.14]
Respondents
Because of using other application
No need to use
Service is not available
Lack of knowledge
0 10 20 30 40 50 60 70 80
Respondents
INTERPRETATION:-
According to above chart is showing reasong that whay respondents are

not using some of the services in mobil banking app. As we know that every bank have different
pattern of app. So all are having different facilities for there customers. According to that most
off response is about no need to use that is may because of using other applications for
perticular servise. 44% are not able to use so bank should add that perticular servise.

34
10 ]Gender
Respondents
Female 82
Male 58
Prefer not to say 0
[TABLE 3.15]
Gender
Female Male Prefer not to say
0%
41%
59%
INTERPRETATION:-
In this questionnair total respondents are 140. Out of them 59% are
females and 41% are male.

35
11] Age
Respondents
<20 10
20-30 53
30-40 52
40-50 25
>50 0
[TABLE 3.16]
AGE
<20 20-30 30-40 40-50 >50
0%
7%
18%
38%
37%
INTERPRETATION:-
According to the above chart 20-30 year age group are active most for resond. 7% are more than
50 year. And between 30-40 are 37%.

36
12]Occupation
Respondents
Student 36
Business 14
JOB 40
Self employed 34
Other 16
[TABLE 3.17]
Occupation
Other Student
11% 26%
Self employed
24% Business
10%
JOB
29%
INTERPRETATION:-
29% of the responents are doing jobs and 26% respondents are students.
There are only 10% of respondents who are doing there own business.

37
13] Family income
Respondents
<10,000 0
10,000 - 30,000 31
30,000 - 70,000 52
70,000 - 1,00,000 36
>1,00,000 21
[TABLE 3.18]
Family income
0%
15%
22% <10,000
10,000 - 30,000
30,000 - 70,000
26%
70,000 - 1,00,000
>1,00,000
37%
INTERPRETATION:-
Family income is not so important but than also it is required beause

respondent are actually related activity with money. High persentage of 37% which is between
30,000-70,000. And ther is no one respondents who have income more than 1,00,000. This is
about monthly income.

38
❖ Cross tabulation between performance improvement and respondents age.
Case Processing Summary

Cases
Valid Missing Total
N Percent N Percent N Percent
Age * improvment 140 100.0% 0 0.0% 140 100.0%
performance
Chi-Square Tests
Asymptotic
Significance (2-
Value df sided)
Pearson Chi-Square 2.567a 6 .861
Likelihood Ratio 2.190 6 .901
Linear-by-Linear Association .170 1 .680
N of Valid Cases 140
a. 3 cells (25.0%) have expected count less than 5. The minimum
expected count is 1.43.

39
❖ Cross tabulation between type of bank and improvement of performance.
Case Processing Summary

Cases
Valid Missing Total
N Percent N Percent N Percent
Type of bank * improvment 140 100.0% 0 0.0% 140 100.0%
performance
Chi-Square Tests
Asymptotic
Significance (2-
Value df sided)
Pearson Chi-Square 9.436a 4 .051
Likelihood Ratio 10.270 4 .036
Linear-by-Linear Association 4.487 1 .034
N of Valid Cases 140
a. 1 cells (11.1%) have expected count less than 5. The minimum
expected count is 4.29.

40
Findings
→ Public sector bank ROA data was reported at -0.230% in 2020.

→ Private sector bank ROA data was reported at 0.510% in 2020.
→ Public sector bank ROE was -4.160% in 2020 and private sector bank ROE was 3.300%
in 2020.
→ Last few years are showing increase in usage of mobile banking.
→ 68% respondents are using mobile banking applications.
→ 43% are having bank account with public bank. 36% are in private bank.
→ 38% are respondents are using mobile banking last 3 years to 6 years increase the
percentage of using mobile banking.
→ Most of respondents are using mobile banking because of the secured systems.
→ According to 62% mobile banking transaction have increased as bank performance
improved.
→ Perceived utility is important for notice the trend in mobile banking.
→ As use of mobile banking increased than the profit of that will added in banks overall
financial performance which may increased.

41
CHAPTER 3
CONCLUSION

42
CONCLUSION
→ The study provided an analysis of the impact of mobile banking in financial

performance of Indian banks.
→ By using quantitative research methods.
→ On the basis of the data collected and interpreted, a number of findings and conclusions
were made and presented.
→ Almost all the respondents agreed on the using mobile banking App which provide by
the banks.
→ Based on the findings banks has to continue services in terms of quality of services
offered.
→ Performance in terms of profitability and sustainability.
→ The study has also shown that there is positive impact of financial performance
indicators before and after the adoptation of mobile banking system.
→ Shown the positive impact of mobile banking transaction volume.

43
Menegarial implications
→ There are many respondents who prefer mobile banking application.

→ There should be needed to increse the services and adjustment of present services.
→ Because some services are not used by users because of using other applications.
→ In mobile banking increase the transaction volume which effect on profit to the bank and
there financial performance.
→ Increase the users mostly in time of pandamic because of Covid-19.
→ Prefering all types of banking work can be done at home no need to visit bank.
→ India mobile banking transaction volume data was reported at 3,212.698 unit mn( unit
meganewton) in jun 2021.

44
BIBLIOGRAPHY
Books referred:-
-- .
Websites referred:-
www.moneycontrol.com
rbidocs.rbi.org.in
economictimes.indiatimes.com
www.screener.in
www.docs.google.com
www.paperpublication.org
www.rbi.org.in
www.google.com. (n.d.).
https://docs.google.com

45
ANNEXURE
Impact of mobile banking application on financial performance of Indian

banks.
Dear respondent,
I am Rathwa Bhavna the student of Department of business and industrial

management, VNSGU, Surat. Studying S.Y.MBA in 4th semester. I am going to do a survey on
"Impact of mobile banking application on financial performance of Indian banks". Part of my
winter project. I would be grateful if you provide me with some of your valuable time to answer
a few questions.
1] Your name
2] Do you use your cell phone for any financial / banking transaction?
Yes
No
3] Do you use mobile banking service which provide by bank?
Yes
No
Some time
4] What type of bank do you have a bank account with?
Private
Public
Cooprative

46
5] The period of banking with the bank when using mobile banking?
Less than 3 years
3 years to 6 years
6 years to 9 years
More than 9 years
6] According to you what are the critical success factors for adopting mobile
banking services?
Reliability of network
Secured systems
Support from top management
Fast and responsive customer service
Promotion of mobile banking with the organization
7] Has your bank's performance improved as your mobile banking

transactions have increased?
Yes
No
Maybe
8] How often do you make transactions?
Daily basis
Weekly basis
Monthly basis
Occasionally

47
9] Rate your perceived utility of varios mobile banking services. (Rate as per
1-High use and 5-No use)
Points 1 2 3 4 5
Review account balance
Recent transaction / mini-statements
Review credit card balance
Status on cheque
Alert on account activity
Change of PIN
Ordering checkbook
Bill payment
Access to loan statement
Fund transfers
Credit card payment
Mobile recharging
Managing loan account
ATM location
Mutual fund / equity statement
E-passbook
FASTag
Cash on mobile
10] Reasons for not using some of the application service?
Lack of knowledge
Service is not available
No need to use
Because of using other application
11] Your gender

48
Female
Male
Prefer not to say
12] Your Age
<20
20-30
30-40
40-50
>50
13] Occupation
Student
Business
JOB
Self employed
Other
14] Family income
<10,000
10,000 - 30,000
30,000 - 70,000
70,000 - 1,00,000
>1,00,000

Impact of Mobile Banking Application On Financial Performance of Indian Banks"

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“IMPACT OF MOBILE BANKING APPLICATION ON FINANCIAL PERFORMANCE

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF DEGREE OF

MASTERS OF BUSINESS ADMINISTRATION

UNDER THE GUIDENCE OF:

Department of Business and Industrial Management

VEER NARMAD SOUTH GUJARAT UNIVERSITY

ACADEMIC YEAR: 2020-21

Chapter Number Topics Page Number

EXECUTIVE SUMMARY III

1.1 LITRATURE REVIEW 8

2 METHODOLOGY OF THE STUDY 11

2.1 RESEARCH OBJECTIVE 12

2.2 RESEARCH DESIGN 12

2.3 NATURE OF THE DATA 12

2.4 SAMPLE SIZE 12

2.5 DATA COLLECTION 13

2.6 LIMITATION OF WORK 13

Department of Business and Industrial Management

To whomsoever it may concern

Department of Business and Industrial Management

ROLL NO.: 211

Department of Business and Industrial Management

Department of Business and Industrial Management

Department of Business and Industrial Management

Department of Business and Industrial Management

Mobile Banking Apps

HDFC Bank Mobile Application

Department of Business and Industrial Management

ICICI Bank’s iMobile Application

SBI’s Anywhere Personal Application

Bank of Baroda’s M-Connect Plus Application

GoMo – saraswat cooprative bank

Department of Business and Industrial Management

Cosmos cooprative bank

Percentage of digital transaction in India:

• 68 percent of Indian consumers are now using online or mobile banking to

Department of Business and Industrial Management

3months from January to March 2020(Statista) and is further expected to grow

Number of mobile banking payments across India from financial year

Mobile payments growing faster than cards in India

Department of Business and Industrial Management

Department of Business and Industrial Management

Department of Business and Industrial Management

Department of Business and Industrial Management

2.1 RESEARCH OBJECTIVES:-

2.2 RESEARCH DESIGN:-

2.3 NATURE OF THE DATA:-

2.4 SAMPLE SIZE:-

Department of Business and Industrial Management

2.5 DATA COLLECTION :-

• Data collected by the primary data in this used questionnaire.

2.6 LIMITATION OF WORK:-

Department of Business and Industrial Management

Department of Business and Industrial Management

India's Public Sector Banks: Return on Assets

Department of Business and Industrial Management

India's India Private Sector Banks: Return on Assets

Department of Business and Industrial Management

India Public Sector Banks: Return on Equity

Department of Business and Industrial Management

India Private Sector Banks: Return on Equity

Department of Business and Industrial Management