Synopsis on :A Study Of The Banking Sector In India - With

Reference To Net Banking

Submitted to: Dr. Srilakshminarayana.G

Submitted by :
Roydon D’Souza -17081
Sahil Silhi -17082
Samiksha Patel -17083
Saurabh Singh -17084
Sharon S Pinto -17085
Contents
Title of the project: .......................................................................... 2
Abstract: ........................................................................................... 2
Introduction: ..................................................................................... 2
Literature review: ............................................................................. 3
Details of the Proposed work:.......................................................... 4
Research Methodology: ................................................................... 5
Population definition:...................................................................................................... 5
Sampling design: ............................................................................................................. 5
Sample size determination: ............................................................................................. 5
Questionnaire design:...................................................................................................... 5
Statistical methods for data analysis: .............................................................................. 5

Managerial Implication of the study:............................................... 5

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Title of the project: A Study Of The Banking Sector In India - With Reference To
Net Banking

Abstract:
Since the late 1990’s internet banking has attracted the attention of banks, brokerage
houses, regulators, law makers, security trading firms, insurance companies in developing
countries. Internet banking and payment is likely to advance with the significant and
rapid growth in E-commerce. Research have shown the impact of net banking on cost
saving, revenue growth and increased customer satisfaction on industry is tremendous
and can be a potential tool for building good strategy. Although, it has raised many public
policy issues before the banking regulators and government agencies. When it
particularly comes to consumers and the bankers, reliable and systematic information on
the scope of net banking in Indian context is not sufficient. The research trace the present
growth and project the likely scenario and it fills significant gaps in information about the
consumers prospective of net banking. The research presents the data, drawn from a
survey of Internet banking consumers and the banks that offer Internet banking and
develops a functional model for maximizing value to the customers, which the banks may
choose to adopt Net banking strategically. The research recognizes the weaknesses of
conventional banking and explores the consumer awareness, use patterns, satisfaction and
preferences for net banking v/s conventional form of banking and highlights the factors
that may affect the bank’s strategy to adopt net banking. The regulatory and supervisory
concerns of net banking has also been addressed. [1]

Introduction:
Online banking also known as internet banking is an E-payment system that enables
customers of a financial institution to conduct a range of monetary transactions through
the bank/financial institution website. Online banking has many features, the common
feature of online banking are as follows
1) Checking account balance
2) Viewing recent transaction
3) Funds transfer
4) Ordering cheque book

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5) Credit card application etc.
The goal of this research is to test the customer behavior with respect to online banking
versus traditional banking, and to explore the chances of blending this system of banking.
This research also suggests the strategy the bank needs to maximize the consumer
benefits. The primary data used in the research consists of survey conducted on a sample
of around 100 consumers arrived at using relative precision technique (Taylor, 1997).
The survey includes the students of SDMIMD, instrument being questionnaires filled up
from the customer and one to one interaction. The major assumptions in this research are
– (1) online banking is same as Internet banking (2) the behavior of the surveyed
population viz. consumers and bankers confirms to a normal distribution. As online
banking has no geographical boundaries, hence the study limits itself to Mysore. [2]

Literature review:
1. State Bank of India
The first presidency of SBI was established in Kolkata in 1806 during the British Raj and
was named as Bank of Bengal.
Presently SBI is operational with five associate banks in India and has 137 foreign offices
in 32 countries worldwide [3]
State Bank of India has brought down service charges on not maintaining monthly
average (MAB) balance by a whopping 20-50%.
2. Canara Bank
Ammembal Subba Rao Pai established Canara Hindu Permanent Fund in
Mangalore, India, on 1 July 1906. In 1910 the Bank changed its name to Canara Bank
Limited. Canara Bank Limited was incorporated in 1990.

In 1996 Canara Bank became the first Indian Bank to get ISO certification
for “Total Branch Banking” for its Seshadripuram branch in Bangalore. In 2005 Canara
Bank achieved 100% Branch computerization.
[4]

3.ICICI Bank
Industrial Credit and Investment Corporation of India is the second largest bank in India
and also features among the big four banks of India, which comprises State Bank of India
(SBI), Bank of Baroda and Punjab National Bank (PNB).
ICICI Bank launched internet banking operations in 1998 only. It's
MD and CEO Chanda Kochhar is regarded as one of the powerful women in the
world. [5]

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Power Grid Corp said it has entered into a term loan facility agreement with ICICI Bank
for Rs. 3,270 crores.

4. HDFC Bank
The banking licenses issued in 1994-1995 saw the birth of HDFC Bank. At the same time
the 'Times Bank' group was also set up by the Bennett Coleman Group (owner of The
Times of India) and Centurion Bank which didn't do quite as well. HDFC Bank acquired
Times Bank in 1999 and Centurion Bank in 2008.
HDFC Bank went public in 1995. The issue was oversubscribed 55 times and listed at
about 40 rupees, 3 times its issue price. Its current price is 1246. After adjusting for
bonuses, stock splits etc., its return since listing comes to a whopping 26% per annum. Its
shares were also listed on the New York Stock Exchange (NYSE) in 2001.
HDFC Bank's first corporate borrower was Siemens. It had acquired a number of
borrowers even before getting a banking license - so it lent them money as 'inter-
corporate deposits.' Its first individual borrower was D.B. Remedios of Thane who
borrowed 35,000 to build a house. [6]
In a first of its kind efforts in the domestic banking sector, second largest private sector
lender HDFC Bank today said it will be partnering with 50 technology and business
schools to tap into emerging fintech ideas. It announced a tie-up with IIT-Bombay and
IIT-Roorkee as part of the industry-academia partnership effort

Details of the Proposed work:

The objective of the study is to know how net banking has helped the various banks and
its customers. A bank customer can perform non-transactional tasks through online
banking, including-
 Viewing account balances
 Viewing recent transactions
 Downloading bank statements, for example in PDF format
 Viewing images of paid cheques
 Ordering cheque books
 Download periodic account statements
 Downloading applications for M-banking, E-banking etc.
Bank customers can transact banking tasks through online banking, including –
 Fund transfer between the customer's linked accounts
 Paying third parties, including bill payments and third party fund transfer
 Investment purchase or sale
 Loan applications and transactions, such as repayments of enrolments
 Credit card applications

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  Register utility billers and make bill payments
 Financial institution administration
 Management of multiple users having varying levels of authority
 Transaction approval process [7]

Research Methodology:
Population definition: The data will be collected from all students in the college, which is
around 330 students.
Sampling design: The type of sampling technique used in the study is convenient
sampling technique since the data collected will be based on the people filling the form.
Sample size determination: the sample size will be around 50 students out of the ones
who fill the form.
Questionnaire design: a google form will be mailed to all the students of the college. The
questionnaire will ask for details like
 Name of the bank you’re a customer of
 Whether net banking facility is used
 Services availed and satisfaction
 Services which need improvement
 How net banking has made a difference
Statistical methods for data analysis: the method used for analysis will be Descriptive
statistics. Primary data will be collected through a survey.

Managerial Implication of the study:

With the appearance of the Internet, everything has changed into its electronic form.
Online Banking or Net banking isn't very behind. In today's era when organization have
access to a wide range of devices like portable PCs, telephones, tablets - Online Banking
is only a single tick far from making financial transaction. An organization can make an
exchange or transact from anyplace - they are not required to go a bank counter -the
company can have access from anywhere or even when there is a holiday. They need not
abide the working hours of the bank and not stress over Sundays or different occasions -
organization account is open 24x7.
The best part about internet banking is that organization can monitor all your different
accounts at the same time. In the case when organization have various accounts, they
don't have to go to various branches of their bank. This spares a considerable amount of
time.

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With the help of this research the organization will know more about the consumer
behavior which will help to decide where they need strong banking infrastructure and
where they have to just manage the banking infrastructure.

References

[1] "STUDY MODE," [Online]. Available: http://www.studymode.com/essays/e-

Banking-Project-1466503.html.
[2] [Online]. Available: http://www.studymode.com/essays/e-Banking-Project-
1466503.html.
[3] [Online]. Available: http://topyaps.com/20-interesting-facts-state-bank-india.
[4] [Online]. Available: http://www.bankingawareness.com/banking-gk/canara-bank-
important-points/.
[5] [Online]. Available: http://www.businessinsider.in/How-ICICI-became-Indias-
biggest-Bank-Here-are-some-interesting-facts-about-the-bank/articleshow/53653276.
[6] [Online]. Available:
https://www.valueresearchonline.com/story/h2_storyView.asp?str=32858 .
[7] [Online]. Available: https://en.wikipedia.org/wiki/Online_banking.