Customer Perception Towards The Products and Services of HDFC Bank

SUMMER TRAINING REPORT
ON
CUSTOMER PERCEPTION TOWARDS NET BANKING
&
THE SERVICES PROVIDED BY HDFC
SUBMITTED TOWARDS THE PARTIAL FULFILMENT OF
THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF
POST GRADUATE DIPLOMA IN MANAGEMENT
Submitted To :- Submitted By :-
Mr. Atul Arora Shilpi Ghosh
Associate Professor GM18213
Summer Internship Report | 1

Acknowledgement
I owe my gratitude to many people who helped and supported me during the entire Summer
Training.
My sincere thanks to Mr. Atul Arora, the Faculty Guide of the project, for initiating and guiding
the project with attention and care. He has always been available for me to put me on track
from time to time to bring the project at its present form.
I am also thankful to CRC Head for providing me the opportunity for SIP in HDFC Bank.
I am highly thankful to the Director General of the Institute for her support, motivation and
continuous efforts in providing us the better learning environment and opportunities to groom
ourselves as per the expectations of the corporate world. Without her support, it would not be
possible for us to successfully complete our SIP.
My deep sense of gratitude is due to Mr. Vishal Parashar, Branch Manager, HDFC Bank for
allowing me to carry out the Summer Internship and this Project at the organization and to be
constantly available to me for the period, for guidance. He also helped me to see the subject of
study in its proper perspective. Thanks and appreciation is also due to the officials, employees
and respondents of HDFC Bank, for their support.
I also thank all faculty members without whom this project would have been a distant reality.
Signature
(Name of the Student)
Place
Date

FACULTY GUIDE CERTIFICATE

FACULTY GUIDE CERTIFICATE
This is to certify that the work reported in SUMMER INTERNSHIP

Project titled “ CUSTOMER PERCEPTION TOWARDS NET
BANKING & THE SERVICES PROVIDED BY HDFC BANK”
submitted by SHILPI GHOSH at G L Bajaj Institute of Management &
Research, Greater Noida is a bonafide record of her original work
carried out under my supervision. This work has not been submitted
elsewhere for any other degree or diploma.
(Signatureof Faculty Guide)
Name :-
Date :-

Abstract
Summer Training is a major part of the management programs because it provides a lot of
corporate exposure, practical knowledge as well as organizational experience. This pre-
exposure of the market becomes very easy in order to form a position as well as to sustain in
the corporate world.
In today’s corporate world I found that banking sector has a maximum growth and potential as
compared to other sectors. HDFC is a customer- centric bank which offers a comprehensive
range of insurance products, saving account, current account, salary account, personal loan,
insurance broking and claim handling to our customers as per their requirements. Now a days
the essential factor of any successful business is customer satisfaction. Organization/ Company
invest huge amount of money to acquire customers and to make products and services as such
that they satisfy the needs and wants of the customers. The satisfied customers are inevitable
and they help to increase the profit and retain the organization reputation in every competitive
market. So keeping these points in mind I have chosen my topic to analyse CUSTOMER
PERCEPTION TOWARDS NET BANKING &THE SERVICES PROVIDED BY HDFC.
The data has been collected through various sources including primary sources and secondary
sources. Random Sampling technique was used. A simple random sample of 100 respondents
have answered a specially designed questionnaire, which asked them about the knowledge of
the products and services they provide which will show their perception. T- Test and Co-
relation is used to interpret the results. For analysing and interpret the data I have used various
statistical tools like SPSS 16, Ms Excel and Ms Word.
The finding shows that there is no significant difference between the level of satisfaction for
various factors among male and female. But it is seen that youngsters were much more aware
of the products and services and in used to it.

Table of Content
S. No Title Pg No.
1 Introduction 8-20
2 Company Profile 21-24
3 Literature Review 25-31
4 Research Objective & Hypothesis 32-33
5 Research Methodology 34-36
6 Data Analysis & Interpretation of 37-45
Findings
7 Conclusion 45-46
8 Suggestion 47-48
9 Bibliography 49-50
10 Appendices 53-72

Table of Figure
S. No Title Pg No.
1 Fig.1 39
2 Fig. 2 40
3 Fig. 3 41
4 Fig. 4 42
5 Fig. 5 42
6 Fig. 6 43
7 Fig. 7 44
8 Fig. 8 44
9 Fig. 9 45

CHAPTER – 1
INTRODUCTION

CHAPTER 1
INTRODUCTION
User adoption of a technology has become a crucial or significant measure of the success or
effectiveness of that technology. Revolutionary development in Information and
Communication Technology (ICT) in the past 20 years has impacted individuals as well as
businesses in a profound way. Internet banking (IB) is a radical technological innovation with
potential to change the structure and nature of banking. To sustain business competitiveness,
more and more banks are transforming from their traditional approach of “bricks and mortar”
into a “clicks and mortar” one under the recent emergence of electronic commerce and
business. Internet banking has attracted the attention of banks, securities trading firms,
brokerage houses, insurance companies, regulators and lawmakers in developing nations. With
the rapid and significant growth in electronic commerce, it is obvious that electronic (Internet)
banking and payments are likely to advance. Researches show that impact of Internet banking
on cost savings, revenue growth and increased customer satisfaction on Industry is tremendous
and can be a potential tool for building a sound strategy. However, it has raised many public
policy issues before the banking regulators and government agencies. Interestingly, reliable
and systematic information on the scope of Internet banking in Indian context is still not
sufficient, particularly what it means to the consumers and the bankers. The paper fills
significant gaps in knowledge about the consumer’s perspective of Internet banking, trace its
present growth and project the likely scenario. The paper presents the data, drawn from a survey
of Internet banking consumers and the services providers (banks) that offer Internet banking
and develops a functional model for maximizing value to the consumers, which the banks may
choose to adopt Internet banking strategically. The paper identifies the weaknesses of
conventional banking and explores the consumer awareness, use patterns, satisfaction and
preferences for Internet banking vis-à-vis conventional form of banking and also highlights the
factors that may affect the bank’s strategy to adopt Internet banking. It also addresses the
regulatory and supervisory concerns of Internet banking.

Internet banking
Internet banking is the series of technological wonders of the past, ATMs, Tele-Banking,
Internet Banking, Credit Card and Debit Cards have emerged as effective delivery channels for
traditional banking products. Banks know that the internet opens up new horizons for them and
moves them from local to global frontiers. Internet Banking refers to systems that enable bank
customers to get access to their accounts and general information on bank products and services
through the use of bank’s website, without the intervention or inconvenience of sending letters,
faxes, original signatures and telephone confirmations. It is the type of services through which
bank customers can request information and carry out most retail banking services such as
balance enquiry, inter/ intra account transfers, bill payments, insurance, deposits, pin
generation, request for cheque book demand draft, etc. via telecommunication network without
leaving their home/ organization. It provides universal connection from any location worldwide
and is universally accessible from any internet linked computer or mobile. Information
technology developments in the banking sector have sped up communication and transactions
for clients for maximizing the advantages for both client and service provider. Internet is the
cheapest delivery channel for banking products as it allows the entity to reduce their branch
networks and downsize the number of service staff. Internet banking is becoming the
indispensable part of modern day banking services.
Internet Banking In India
The financial products and services have become available over the internet, which has thus
become on important distribution channel for a number of banks. Banks boost technology
investment spending strongly to address revenue, cost and competitiveness concerns. A study
on internet users, conducted by Internet & Mobile Association of India (IAMAI), found that
about 23% of the online users prefer internet banking as the banking channel in India, second
to ATM which is preferred by 53%. Out of the 6365 internet users sampled, 35% use online
banking channel in India. This shows that a significant number of online users do not use
internet banking.

Consumer Acceptance of Internet Banking
Technological innovations are having significant importance in human general and

professional life. The quick expansion of information technology has imbibed into the lives of
millions of people. Rapid technology advancements have introduced major changes in the
worldwide economic and business atmosphere. Research on costumer perception towards net
banking showed there are several factors predetermining the consumer’s attitudes towards
online banking such as demography, motivation and behaviour towards different banking
technologies and individual acceptance of new technology. It has been found that consumer’s
attitudes toward online banking are influenced by the prior experience of computer and new
technology. The adoption of internet banking forces consumers to consider concerns about
password integrity, privacy, data encryption, hacking and the protection of personal
information. Internet banking thus requires the consumer to maintain and regularly interact
with additional technology. Consumers who use internet banking use it on an ongoing basis
and need to acquire a certain comfort level with the technology to keep using it.
Perceived Usefulness of Internet Banking
Perceived usefulness is one of the component which has been widely used by information
system researchers, according to which a person believes that using a particular system will
enhance his or performance, as a extent to which a person deems a particular system to boost
his or her job performance.
Perceived Ease on Use of Internet Banking
According to perceived ease of use is the extent to which a person believes that using a
particular system will be free of effort. It is a critical factor in the development and delivery of
internet banking services. Perceived ease-of-use is a person’s subjective perception of the
effortlessness of a computer system, which affects the perceived usefulness thus having an
indirect effect on a user’s technology acceptance. Also, the longer an individual has been using
internet banking the more likely they are to find it easy to use. The easier it is for a user to
interact with a system the more likely he or she will find it useful. There is substantial empirical
support for this view. It affects the consumer’s intentions to use internet banking. I found that
perceived ease use of internet banking was not positively correlated with online banking use.
In contrast found that ease of use of online banking had a significant positive effect on
behavioural intention. This finding refers to the fact that users who have a higher computer
self-efficacy are likely to have more positive ease of use of internet banking.

Perceived Risk
The distant and impersonal nature of the online environment and the implicit uncertainty of
using a global open infrastructure for transactions have rendered risk an inevitable element of
e commerce. The main components of perceived risk are perceived security and trust, which
have emerged as the top issues inhibiting IB adoption. This construct reflects an individual’s
subjective belief about the possible negative consequences of some type of planned action, due
to inherent uncertainty which is likely to negatively influence usage intentions. Trust is at the
heart of all kinds of relationships. Trust has a critical influence on user’s willingness to engage
in online exchanges of money and sensitive personal information. Trust refers to an expectation
that others will not behave opportunistically. Consumer’s perceived trust in online payment
system is defined as costumer’s belief that e payment transactions will be processed in
accordance with their expectations. It is defined in terms of individual’s perception of the
security of the system, the service provider’s reputation, loss of privacy and concerns about
risks associated with the reliability of internet banking. Trust can be defined as a user’s
confident belief in a bank’s honesty toward the user. Consumer’s trust in their online
transaction is important and has been identified as a key to the development of the system.
Customer’s trust is a function of degree of risk involved in the situation where there is a
physical separation between the bank and the customer, circumstances are difficult to monitor.
There are still customers who fear to make use of internet banking, as they are concerned with
security aspects of such a system. Previous research has found the risk associated with possible
losses from the online banking transaction is greater than in traditional environment.
Customer Relations on Bank
Service Quality
The bankers offer equal service quality to their customers. They don’t make discrimination on
nationality, religion, financial and social status and gender. However, differentiation was
arising from determination of target market, organizational structures and product ranges or
different approaches to high-risk customers, should not be constructed as an evidence of
prejudice or categorizations among customers.

Handling Customer Complaints
They investigate the reasons behind customer complaints and take required measures to avoid
their repetition. Also, employees are notified of the errors encountered in practices and are
warned for the purposes of correction of such errors and prevention of their repetition.
Security
With their services developing along the lines of technological advancements and electronic
banking will take will technical and legal measures required for the security of processes
involved in all service media and different service channels against victimization of customers.
Banks will not compromise on ‘Security’ either in protecting and safekeeping of the securities
owned by the customers like deposits, share certificates, bonds, bills, information and
documents considered as customer secrets etc., and in the presentation facilities like credit,
interest, etc.,
EVA (Banking Chatbot)
HDFC Bank's EVA (Electronic Virtual Assistant) is India's first and largest Artificial
Intelligence powered banking chatbot. Eva was built with the aim to leverage latest
technologies to help serve our customers better and faster. Eva uses the latest in AI and Natural
Language Processing to understand the user query and fetch the relevant information from
thousands of possible sources, all in a matter of milliseconds. Customers can get the
information they are seeking instantaneously by conversing with Eva in human language
instead of searching, browsing, clicking buttons or waiting on a call.
Eva has already answered more than 5 million queries from around a million customer with
more than 85% accuracy. Eva holds more than 20,000 conversations everyday with customers
from all over the world.
The technology behind Eva was built and is managed by Sense forth AI Research Private
Limited, a leading Artificial Intelligence start up working on cutting-edge research in the space
of conversational banking.

Features of EVA
 Always at your service, EVA is available round the clock to help you out with your banking
related issues
 Quick and easy, use of EVA to conveniently explore a product, know the salient features and
benefits and even transact
 Always learning and evolving, the more you interact the better her gets an understanding your
issues and provide more contextual results.
Services through Net Banking
Net Banking is HDFC Bank’s internet banking services. Through Net Banking, one can
perform all transactions online without leaving the comfort of your own home. So, a person
can just log into Net Banking and conduct 200+ transactions from the comfort of one’s home
or office.
Features and Benefits of Net Banking
Net Banking is an incredibly convenient and powerful tool, letting one do everything he/she
want with their accounts at the click of a mouse. It’s Real Time, giving you up-to-the-second
details on your account. All one need to Log in is your Customer ID and IPIN (Net Banking
password). Customer ID is mentioned in account statement/ account welcome letter (Current
account / HUF customers can get it from the branch). IPIN can re-generated online in case one
don't have it.
Some things you can do with Net Banking are:
 Check your account balances and download 5 year account statement in 5 formats,
instantly
 Book Fixed Deposit / Recurring Deposit
 Pay Utility Bills
 View your Credit Card details and pay your Credit Card Bills
 Recharge your Prepaid Mobile & DTH Connections
 Invest in Mutual Funds Online

 Book IRCTC Tickets online
 Purchase a Gift Card
 Pay your Taxes online
 Update your PAN Details online
 View your Tax Credit Statement (Form 26 AS)
 Request for a Demand Draft/ Cheque book
 Request Stop Payment of a Cheque/ Hotlist you Debit Card/ Credit Card
 View your Loan details
 Apply for IPO
 Request for Debit Card PIN Regeneration
 Register for Third Party Transfer
 Transfer funds between accounts within HDFC Bank and other Bank Accounts
How to Register for Net Banking?
Net Banking registration is given by default to all HDFC Bank Customers. In case you are not
registered for Net Banking, it is quick & easy. We have made registering for Net Banking quick
and easy.
The many ways through which you can register are:
 Online
One can register for Net Banking online by following the below steps
 Enter Customer ID & confirm
 For NR customers with Indian mobile number –Select the Debit Card and input the
Debit Card details. Then confirm mobile number and authenticate the transaction by
inputting the OTP (One Time Password )
 For NR customers with International mobile number- A One Time Password (OTP)
would be sent to registered mobile number and Email ID. You need to enter both the
OTPs
 Input the new IPIN
 Login to Net Banking using the newly set IPIN

 Phone Banking
 Call the Phone Banking number in your city and give your Customer ID and Telephone
Identification Number (TIN) or Debit Card and PIN
 Our Phone Banking agent will take your Net Banking registration request
 Bank will courier the IPIN to mailing address in records within 5 days
 Download the form

 Download the Net Banking registration form (individual or corporate)
 Fill in the form and submit it to nearest HDFC Bank branch
 Bank will courier the IPIN to your mailing address in our records
 ATM
 Visit the nearest HDFC Bank ATM
 Enter HDFC Bank Debit Card number and ATM PIN
 Select 'Other Option' from the main screen
 Select 'Net Banking Registration' and confirm
 We will courier the IPIN to your mailing address.
Insta IPIN Facility

One can instantly reset Net Banking password (IPIN) by following the below steps:
 Enter Customer ID
 Select one of the two methods for authenticating the transaction
 OTP on registered mobile number and Debit Card details(PIN and expiry date)
 OTP sent to registered mobile number and email id (not applicable for Resident
senior citizen customers)
 Input the details requested
 Set IPIN
 Login to Net Banking using your newly set IPIN

Third Party Transfer
Third-Party Transfer (TPT) is a feature one can use to transfer funds from HDFC Bank account
to another account (called the beneficiary), within HDFC Bank or any other bank, anywhere in
India.
One need to be separately registered for this service.
Which transactions are covered under Third Party Transfer?
Third Party transfer includes all transactions where funds are transferred from one account to
another, within or outside the Bank.
 Transferring funds from HDFC Bank account to other HDFC Bank accounts with different
Customer IDs. TPT is a real time transaction, which means that the transfer will show up
immediately in your accounts.
 National Electronic Funds Transfer (NEFT) - This is a Funds Transfer service, to transfer
funds to Accounts outside HDFC Bank. Any amount in the range of Re. 1 to Rs.10 Lacs can
be transferred through this facility. One need to add a Beneficiary to transfer funds to his
Account. Only the Account Number and IFSC details are used to carry out the transaction.
 Real Time Gross Settlement (RTGS) - This is a Funds Transfer facility where the amount
reaches the Beneficiary's Bank within time stipulated by RBI. The transaction amount can vary
from Rs.2 lacs to Rs.10 lacs. One need to add a Beneficiary to transfer funds to his Account.
Only the Account Number and IFSC details are used to carry out the transaction.
 Immediate Payment Service (IMPS) (formerly called as Inter Bank Mobile Payment
service) - through which you can transfer funds instantly to any IMPS Beneficiary. It is an
instant interbank electronic fund transfer service, which one can use with your mobile phone.
As an HDFC Bank customer one can send money instantly to anyone in any participating bank
(including another HDFC Bank customer) who is registered for IMPS via the Mobile Banking
service. One can also receive money through this mechanism from anyone else in a
participating bank (including another HDFC Bank customer).

 Visa Card Pay from one’s account to any Visa Credit Card within India. One’s account will
be debited online, and the funds will be sent to the beneficiary Bank within 2 working days
using the Visa system. The Beneficiary Bank will then transfer the funds to the beneficiary's
card account.
 Demand Drafts upto Rs.10 Lacs can be requested from your account, through Net Banking.
Demand Drafts will be couriered to the registered mailing address within 4 working days.
Demand Drafts can also be sent to the Beneficiaries address directly. Please note, Demand
Drafts will not be sent to overseas mailing addresses.
Third Party Transfer Limits
Default limit for Third Party Transfer (TPT) is Rs.2,00,000/- per Customer ID per day. This
amount can be transferred in parts or in lump sum. Customer has the option to modify this limit
and increase it online or offline. To increase limit online, one need to authenticate via Debit
Card details and One Time Password (OTP) sent on registered mobile number (For NR
customers with local mobile number) OR One Time Password (OTP ) sent on your registered
mobile number and email id (For NR customers with international mobile number) . In case
one not able to do it online you need to submit the TPT limit increase form at the branch. This
form needs to be accompanied with a self-attested photo ID proof along with original ID proof
for verification. Maximum limit capped for TPT is Rs.10,00,000/- per Customer ID per day.
NRI Customers unable to visit the branch, can submit the TPT limit increase form along with
self-attested Photo ID Proof. The TPT limit can be reduced to upto Rs. 50,000, online.
Please note:
 Third Party Transfer service is for all customers who have their mobile numbers registered
with the Bank
 Current account holders need to be registered for financial rights in order to be able to transfer
funds outside the Account, and additionally require Third Party Transfer Rights to transfer
funds outside the Customer ID (to any third party entity, within or outside HDFC Bank).

Charges
NEFT transactions on Net Banking are charged as below:

 Amounts up to Rs.10,000 - Rs.2.5 (exclusive of taxes) per transaction
 Amounts from Rs.10,001 to Rs.1 lakh - Rs.5 (exclusive of taxes) per transaction
 Amounts above Rs.1 lakh up to Rs.2 lakh - Rs.15 (exclusive of taxes) per
transaction
 Amounts above Rs.2 lakh - Rs.25 (exclusive of taxes) per transaction
RTGS transactions are charged as below:

 Rs2 lakh to Rs. 5 lakh - Rs. 25 (inclusive of taxes) per transaction
 Above Rs 5 lakh - Rs. 50 (inclusive of taxes) per transaction.
Services through Mobile Banking
 SMS Banking
With SMS Banking you can access your account on your mobile wherever you are. Access
your bank account, make banking transactions, monitor one’s accounts and fixed deposits on
your mobile.
Features of SMS Banking
 View balance details

 Get last 3 transaction details
 Request for cheque book
 Stop cheque payment
 Enquire cheque status
 Request for account statement
 Get Fixed Deposit details
 Request for IPIN generation

SMS to be SENT
Type the specific keyword for the transaction and send it to to 5676712
 "bal" for Balance Enquiry
 "txn" for Mini Statement
 "cst <6 digit cheque no.>" for Cheque Status Enquiry.
 PHONE Banking
Phone Banking services are a combination of IVR and Agent offering, depending on the type
of transaction. For all transactions that cannot be completed on the IVR such as reporting loss
of cards, logging complaints, requests & queries, Phone Banker-assisted services are available.
Features of Phone Banking
 Get up-to-the-second details of your Savings or Current Accounts and Fixed Deposits
 Get the details of the last 5 transactions on your account.
 Enquire on the status of cheques issued or deposited anywhere in India#
 Order a Cheque Book / Account statement to be delivered to your mailing address.
 Stop payment of a single cheque or a series of cheques, 24 hours a day
 Get details of the outstanding loan amount, enquire about your loan account, request for an
interest certificate and repayment schedule, etc.
 Open a Fixed Deposit or enquire about your Fixed Deposits / TDS
 Transfer funds between Accounts linked to your Customer ID
 Pay your cellular, telephone & electricity bills using Bill Pay
 Call Phone Banking to report Loss of your ATM / Debit / Prepaid Card.
This service is available 24 hours on all days
 Get details on HDFC Bank products and services by talking to our Phone Banker
 Enquire about latest interest / exchange rates by talking to our Phone Banker
 Get the Email ID added/updated in your Account by talking to our Phone banker.

CHAPTER – 2
COMPANY PROFILE

CHAPTER 2
PROFILE OF HDFC BANK
Incorporation Year 1994
Ownership Group HDFC Group
Headquarter Mumbai, Maharashtra, India
Chairman Deepak S. Parekh
Managing Director Aditya Puri
Chief Financial Officer Sashidhar Jagdishan
HDFC BANK LTD is an Indian banking and financial services company headquartered in Mumbai,
Maharashtra. HDFC Bank is India’s largest private sector lender by assets. It is the largest banki in
India by market capitalization as of February 2016. It is ranked 60th in 2019 BrandZ Top 100 most
valuable global brands. The Housing Development Finance Corporation Limited (HDFC) was amongst
the first to receive an ‘in principle’ approval from the Reserve Bank of India (RBI) to set up a bank in
private sector, as a part of RBI’s liberalization of the Indian Banking Industry in 1994. The bank was
incorporated in August 1994 in the name of ‘ HDFC BANK LTD.”, with its registered office in
Mumbai, India. HDFC Bank commenced operations as a Schedule Commercial Bank in January 1995.
COMPANY’s OWN WORDS
Become the undisputed market leader in providing housing related finance, to realize the dream
of shelter for all in Sri Lanka
To our shareholders, our mission is to optimize returns.
To our customers, our mission is to provide a caring service by anticipating their requirements
and innovatively satisfying them beyond their expectations.
To our staff, our mission is to identify their multi- faceted talents, develop, motivate, recognize
and reward them towards fulfilment of the institutional and national housing vision.

To the national economy and the industry regulator, we are the key driver and thought leader,
shaping and financing the national housing policy.
To our natural environment, we enforce sustainable practices across all our activities.
PRODUCTS OF HDFC BANK
Moreover, it provides a number of products and services which includes
 Wholesale banking
 Retail banking
 Treasury
 Auto (Car) Loans
 Two wheeler Loans
 Personal Loans
 Loans against property
 Credit Cards.
 Forex Card
PORTFOLIO
HDFC Group Companies are HDFC LTD., HDFC Securities, HDFC Mutual Fund, HDFC
Realty, HDFC Life, HDFC ERGO, HDFC Pension and HDB financial services.
SERVICES THROUGH NET BANKING
 Account Summary
 Fund Transfer
 Bill Payments
 Deposits
 Insurance
 Pin Generation
 Request for Cheque Book
 Download Account Statement
 TDS Enquiry
 Demand Draft

 Update Documents
 Stop Payment of Cheque
 Smart Buy

CHAPTER – 3
LITERATURE REVIEW

CHAPTER 3
LITERATURE REVIEW
Internet revolution is global phenomenon and going by the current growth statistics, India
expects a spurt in the Internet penetration in coming years particularly in the electronic
commerce. It is an obvious notion that electronic (Internet) banking and payments are likely to
advance more or less in tandem with e-commerce. Researches indicate that Internet banking
has a significant impact on the business models of banks, securities trading firms, brokerage
houses, insurance companies etc. Internet banking has also attracted the attention of, regulators
and lawmakers in the developing nations since the late 1990s. Internet banking is a mixed
blessing in the form of increased risk, the level of confidence reposed by the consumers and
the problem of blending it with the physical system (Hawke, 2001). Internet banking has
brought about a new orientation to risks like settlement risk, international technology transfer
risk, crime or fraud risk, regulatory avoidance risk, taxation avoidance risk, and competition
risk. In India, some banks like HDFC and ICICI have introduced payment gateways running
on secure systems having firewalls against hacking (Rao, 2001). Convenience, safety and cost
effectiveness are the jargons in the spectrum of online banking (Rose, 1998).
Researchers on various occasions have raised many issues, which must be addressed in context
of Internet banking in India. First, the availability of technology and infrastructure to support
the new model of banking. Second, the need for Internet banking itself – Internet Banking or
an efficient system of instantaneous banking or convenient banking. Third, an adequate
mechanism to tackle the security risk and operational risk aspects (Sharma, 2001). Fourth, a
proper legal framework to take care of the rights and obligation of the consumers. While most
of these issues have been somewhat addressed, an important issue still remains - what existing
and potential consumers feel about Internet banking and on the basis of this how an appropriate
banking model can be developed in Indian context. There is a need to measure and analyse the
consumer perception towards Internet banking, to find out what is wrong with traditional banks
and provide a framework for the banks to strategically adopt the Internet so as to maximize
value for the consumers.

CHAPTER 3
In the current circumstances of retail banking in India particularly with banks becoming larger,
the closure of branches and the widespread use of internet banking, the issue arises whether the
customers are satisfied or not and what are the rudiments of retail banking which lead to the
satisfaction or dissatisfaction of its customers. The knowledge of current levels of satisfaction
and, in particular, the primary factors of satisfaction are beneficial to those in the industry,
thereby allowing them to focus and further strengthen the crucial areas that lead to highly
satisfied customers. Previous results have emphasized that in-branch factors and, in particular,
staff, branch location and convenience are the most noteworthy factors that have some bearing
on customer satisfaction in retail banking. Customer satisfaction is one of the most significant
factors for the profitability of retail banking in India. It calls for the retention of customers for
the long term, which is more economical than attracting new customers (Reichheld and Kenny,
1990). Asian Journal of Business and Economics Volume 1, No.1.4 Quarter IV 2011 ISSN:
2231-3699 4 Banking, being a customer-oriented services industry, the customer is the centre
of attention and customer service has to be the distinguishing factor. The challenge for banks
is to lower costs, increase efficiency, while improving the quality of their service, and increase
customer satisfaction. Attention has now turned to improving the quality of service encounter,
when customers enter the bank and come into face-to-face contact with bank staff
(Chakravarty, 1996). The banking industry like any other financial services industries is facing
a market that is rapidly changing; new technologies being introduced, fear of economic
uncertainties, fierce competition and more demanding customers and the changing climate
have presented an unparalleled set of challenges (Lovelock, 2001).
Internet banking is becoming is increasingly becoming popular because of convenience and

flexibility. The present paper explores the major factors responsible for internet banking based
on respondents’ perception on various internet applications. It also provides a framework of
the factors which are taken to assess the internet banking perception.
The Journal of Nepalese Business Studies Vol. V, No. 1, 2008, December Page: 101-111
Pousttchi and Schurig (2004) define a set of customer requirements from internet banking and
assess the current mobile banking service offerings and discuss their shortcoming and areas of
improvements. In their study, 15 customer requirements were developed and grouped into four

CHAPTER 3
categories such as technical requirements, usability requirements, design requirements and

security requirements and the current forms of mobile banking offerings such as SMS banking,
WAP banking, Mobile banking with Personal Digital Assistants (PDA) and mobile banking
with SIM - toolkit (Subscriber Identity Module Toolkit). The shortcomings of the current
systems are then identified in context to these different service offerings and improvements to
the existing technology have been discussed. A more recent paper dealing with the challenges
of financial service providers in adopting mobile payment channels has been written by
Kapostasy (2008) in the US context. The paper talks about the fast rate at which mobile phone
usage across the US is growing every year and how this has given birth to a new language and
a new form of communication which is the short messaging service. This has in turn led to a
change in the traditional customer segments and the financial service providers need to sit up
and take notice. The service providers have to figure out a way of replicating the online
financial service offerings in mobile banking and at the same time give something extra in the
new language of text messaging to the emerging customers segments simultaneously taking
care of their return on investment and revenue generation possibilities.
The Technology Acceptance Model (TAM) (Davis, 1989) has been used for past research in
mobile banking. The works by Wang, Lin and Luarn (2006) and Lee, Lee and Kim (2007) have
extended the original TAM model and have incorporated factors like perceived risk, trust,
perceived credibility, self-efficacy and perceived financial resources to better explain the
intentions of the consumers to use mobile banking services.
A study by Laukkanen and Pasanen (2008) examined how the innovators and early adopters of
mobile banking usage differ from customers of online banking services. This study was done
to see whether the mobile banking users form a different customer segment when they are
compared with other online users. Responses were collected through online questionnaires
which were responded to by 320 users of mobile banking and 2355 users of internet banking.
Logistic Regression was then performed to see whether the users of mobile banking and users
of other online banking services could be differentiated due to variables such as gender, age,
size of household, household income education and occupation. The results showed that mobile
banking users can be differentiated from users of internet banking services through
demographic variables of age and gender. Mobile banking users were likely to be males and
older than the customers of internet banking. Since customers segments of mobile and internet

CHAPTER 3
banking are not necessarily same or always overlapping, the marketers need to address the
specific needs of the mobile banking customer segments through marketing strategies which
may not be the same as in the case of internet banking. Mallat, Rossi and Tqunainen (2004)
discuss in their paper the new trends in mobile financial applications and how these services
can be delivered through the mobile networks to the end user. The paper was written in the
European context and discusses about the key players in those countries such as banks, network
operators, content providers, other financial institutions such as credit card companies, pure
click or internet companies, retailers, software providers and manufacturers of mobile devices.
The authors conclude that the industry of mobile financial services is still in its infancy but
with the advent of newer technology in this field, acceptance and usage of these services by
consumers are likely to increase in the future. Continuing on the same lines of thought, Riivari
(2005) writes about how the European financial service providers are taking advantage of
mobile services such as mobile banking and why has mobile banking become such an important
financial tool for them. The paper through various examples show that main factors leading to
the use of mobile financial services by service providers consist of improvements in customer
service, reduction of cost, increased reactivity of the company, market share increase and
reinforcing the brand image. The author concludes by saying that mobile devices present the
service providers with greater opportunities for offering more personalized services to their
customers.
Internet banking, however, is now used as the term for new age banking system (Singhal and
Padhmanbhan, 2008). Internet banking is defined as the use of the Internet to deliver banking
activities such as funds transfer, paying bills, viewing current and savings account balance,
paying mortgages and purchasing financial instruments and certificates of deposits (Singhal
and Padhmanbhan, 2008; Ahasanul et al, 2009). Internet banking is also called Online banking,
e– payment and e–banking (Ozuru et al, 2010; Singhal and Padhmanbhan, 2008; Beer, 2006;
Jun and Cai, 2001; IAMAI, 2006). E–payment is described as a means whereby banking
businesses are transacted through automated processes and electronic devices such as personal
computers, telephones, and fax machines, Internet card payments and other electronic channels
(Turban et al, 2006; Ozuru et al, 2010). The electronic communications used in Internet

CHAPTER 3
banking includes: Internet, e–mail, e– books, data base and mobile phones (Chaffey et al,
2006). Cell phone banking apart from Internet banking is considered the way of the future
(Fisher – French, 2007; Masocha et al, 2011). In the recent time, the development in technology
has affected business organizations in several ways, most especially in terms of management
and control; marketing and research; operations and decision making. It is therefore, the vogue
that every organization wants to tap the benefits accrue from technology development. In other
word, most organizations find means of enjoying the advantages encapsulated in the new
technologies (Larpsiri and Speece, 2004; Durkin and Howcroft, 2003; Masocha et al, 2011).
There was reduction of cost through substantial improvement in efficiency by business
organizations. This resulted in banks diverting their focus towards extensive computerization
and electronic operations (Masocha et al, 2011). The electronic delivery of banking service has
become ideal for banks in meeting customers’ expectations and building close customer
relationship (Ching, 2008; Lamb et al, 2002). It is therefore, no doubt that e–banking will
definitely overwhelm traditional banking in the near future; since more developing nations
seem to direct their focus on building up their infrastructure with specific attention on e–
banking, e–commerce and e– learning (Kamel, 2005; Masocha et al, 2011). Internet banking
started with simple functions such as real time access to information about interest rate,
checking account balances and computing loan eligibility. However, these services have
graduated to online bill payment, transfer of funds between accounts and cash management
services for corporate organizations and individuals (Khan et al, 2009; Singhal and
Padhmanbhan, 2008). The development experienced in Internet and other global online
networks have thus created new commercial opportunities for e–commerce and creation of
completely new sets of global and national trading relationships. This consequently, led to the
perception that e-banking and e-commerce are now an inevitable aspect of financial services
(Harris and Spencer, 2002). The use of e–banking has brought many benefits amongst which
include: there are no barrier limitations; it is convenient; services are offered at minimal cost;
it has transformed traditional practices in banking; the only way to stay connected to the
customers at any place and any time is through internet applications; it results in high
performance in the banking industry through faster delivery of information from the customer
and service provider; customers prefer the use of e–banking because it saves time; it makes
possible the use of innovative product or service at a low transaction fees and it encourages
queue management which is one of the important dimensions of e–banking service quality

(Gonzalez et al, 2008; Singhal and Padhmanbhan, 2008; Brodie et al, 2007; Williamson, 2006;
Beer, 2006; Cooper, 1997; IAMAI’s, 2006 and Joseph et al, 1999).

CHAPTER – 4
RESEARCH OBJECTIVE
&
HYPOTHESIS

CHAPTER 4
OBJECTIVES
The objective of this paper is to examine the consumer behaviour with respect to internet
banking vis-à-vis conventional banking and to explore the possibility of blending these banking
systems.
RESEACH HYPOTHESIS
Perceived use and perceived ease of use is significant factors affecting acceptance of an
information system or new technologies and previous research has empirically found positive
relationship between PEU and PU as critical factors on the use of internet banking. Hence an
application perceived to be useful perceived to be easier to use than another is more likely to
be accepted by users. By applying these into online banking context we hypothesize:
 H1 : Perceived usefulness has a positive effect on use of internet banking

 H2 : Perceived ease of use has a positive effect on use of internet banking
Perceptions of risk are a powerful explanatory factor in consumer behavior as individuals

appear to be more motivated to avoid mistakes than to maximize purchasing benefits. Services
are inherently more risky than products and the major reason for this is the higher levels of
uncertainty which are associated with services also found that perceived risk was one of the
major factors affecting consumer adoption, as well as customer satisfaction of internet banking
services. Perceived risk usually arises from uncertainty. Hence we hypothesize:
 H3 : Perceived risks have a negative impact on use of internet banking

CHAPTER – 5
RESEARCH METHODOLOGY

CHAPTER 5
RESEARCH METHODOLOGY
The key intention of this paper is to evaluate those factors that manipulate the nature of
customers towards online banking and their growing tendency towards the online financial
institutions. A survey instrument in the form of questionnaire was developed through data
collected from the customers of the bank.
Research Design
This chapter describes a research design as- a plan that describes how, when and where data
are to be collected and analysed. It basically shows how study will be conducted to fulfil the
defined objectives.
There are major two ways in which research designs is identified, exploratory research design
and descriptive research.
Exploratory Research
Exploratory research is useful when researcher doesn’t have enough idea about how to proceed
with the research problem. If any formal research methods or protocol are not employed in
particular area then researcher may use exploratory research design.
Descriptive Research
Descriptive research helps to identify characteristics of groups or individuals. The major

purpose of descriptive research is description of the state of affairs as it exists at present.
Descriptive research is gathering of information about prevailing conditions or situations for
the purpose of description and interpretation. This type of research method is not simply

analysing and tabulating facts but includes proper analyses, interpretation, comparisons.
Identification of trends and relationships.
Sample Unit
The sample for this study is the customers of the branch and near by market. Convenience
sampling method was used. The reasons of using this sampling type are twofold. First, it offers
an easy way to obtain the raw data for the further analysis. Second, it saves times and
cost since the respondents can be randomly selected. Although there are limitations of using
customer as subjects, they are appropriate in this study for several reasons. First they are good
surrogate for banking customers, they are current bank customers have experience with
traditional banking services and are most likely familiar with the internet banking. Second,
student sample reflects current and future banking customers. Internet users are generally low
with majority of them between 20- 45 ages.
Sampling Technique
The data for this study was collected in two stages. Focus groups were conducted to identify
the major themes in electronic banking, including ATM, telephone and Internet banking.This
provided the background information required to develop the instrument for this study. The
information was obtained through two focus groups each containing approximately 20
participants each. The participants were current and recent users of electronic banking. Two
independent moderators conducted the focus groups. In separate groups the participants were
asked to describe what they thought a quality electronic banking system should provide. The
results were recorded separately and then collated to identify commonalities among
participants. On collating the results 25 common factors were identified. All groups regarded
the 25 items as important elements they would look for when evaluating electronic banking.
The data has been collected through various sources including primary sources and secondary
sources. Random Sampling technique was used. A simple random sample of 100 respondents
have answered a specially designed questionnaire, which asked them to rate the bank services
which will show their satisfaction level. T- Test and Co-relation is used to interpret the results.
For analysing and interpret the data I have used various statistical tools like SPSS 16, Ms Excel
and Ms Word.

CHAPTER- 6
Data Analysis
&
Interpretation of Findings

CHAPTER- 6
ANALYSIS
Statistical Package for Social Sciences (SPSS) version 12 was used as the analysis tool. The
demographic profile of the respondents is shown in table 1. Reliability is determined by
Cronbach’s coefficient alpha (α), a popular method for measuring reliability suggests that for
any research at its early stage, a reliability score or alpha that is 0.60 or above is sufficient. As
shown in Table 2, the reliability scores of all the constructs were found to exceed the threshold;
all measures demonstrated good levels of reliability (greater than 0.80).
TABLE 1 :- Profile of respondents
Demographic Category No. of Percentage

Respondents
Male 60 60
Gender Female 40 40
21-24 30 30
Age Group 24-27 20 20
27-30 20 20
Greater than 30 30 30
Occupation Businessman 20 20
Private employee 30 30
Government Employee 10 10
Student 5 5
Retire 35 35

TABLE 2 :- Reliability Statistics
Determinants No. of Items Reliability for this Sample

Perceived Usefulness 9 0.942
Perceived Ease of Use 5 0.897
Perceived Risk 11 0.978
Fig 1 - Gender
Gender
40% MALE
60% FEMALE
This figure above shows the gender of the respondents, where 60% are male and 40% are
female.

Fig 2 – Occupation
Occupation
20%
35% Businessman
Private employee
Government Employee
Student
Retired
30%
5%
10%
This figure above shows the occupation of customer where 35% of them are retired persons,
30% are private employees, 20% are businessman, 10% are government employees and 5% are
students

Fig 3– Type of account customers have with HDFC Bank
Type of Account
10%
10%
10% 50%
20%
Saving Account Current Account Salary Account Loan Account Deposit Account
This figure above shows the type of account customers owe in HDFC Bank i.e. 50% are having
saving account, 20% are having Current account and rest 30% are equally distributed among
loan, deposit and salary account.

Fig 4- Customer using Net Banking
Net Banking User
44%
56%
Yes No
This figure above shows the net banking users of HDFC Bank
Fig 5 – Reason of not using Net Banking
Reason of Not Using Net Banking

5% 0%
41%
54%
Unaware Complicated to use Security issue Other
This figure above shows the reason of not using net banking 41% of customer are not using net
banking because they are not so tech savvy, 5% customers do not use because they are unaware

about the services being provided through net banking and 54% of customers do not use
because they feel it unsafe or unsecured the matter of hacking comes between.
Fig 6– Reason of using Net Banking
Reason of Using Net Banking
31%
42%
1%
5%
21%
Fund Transfer FD & RD Booking Assetes Loan Offers Investment Utility Bill Payment
This figure above shows the reason customers use net banking, wherein 42% customer uses
net banking for the purpose of fund transfer, 31% customers uses net banking for bill payments,
21% uses for booking deposits, 5% for knowing their loan offers and rest 1% does investment
through it.

Fig 7 – Aware of SMS banking
Aware of SMS Banking
Yes
50% 50%
No
This figure above shows the awareness of SMS Banking among the customers of HDFC Bank.
Fig 8 – Aware of Eva
Aware of EVA
10%
Yes
No
90%
This figure above shows the awareness of EVA (chatbot of HDFC Bank) among customers,
90% people knowing about EVA are mostly millennial and tech savvy’s.

Fig 9– Aware of Payzapp
Aware of Payzapp
5%
Yes
No
95%
This figure above shows about the awareness customer have regarding payzapp app, through
which it was seen that mostly all the customer of the bank were familiar with this payment app.

CHAPTER- 7
CONCLUSION

CHAPTER- 7
CONCLUSION
Thus, the analysis done with the help of statistical tools clearly indicate the factors responsible
for internet banking. Factor analysis results indicate that ‘utility request’, ‘security’, ‘utility
transaction’, ‘ticket booking’ and ‘fund transfer’ are major factors. Out of total respondents’
more than 50 % agreed that internet banking is convenient and flexible ways of banking and it
also have various transaction related benefits. Thus, Providing Internet banking is increasingly
becoming a “need to have” than a “nice to have” service. The use of Internet banking is
confined to a few consumer segments. The risks associated with Internet banking are many,
which the banks have to model using sophisticated systems and extensive use of technology.
The legal framework as its exits requires an updating to streamline and handle the issues
associated with Internet banking. The functional model can be used to prioritize perceptual
variable concerning consumer behaviour so that value to the consumer can be maximized. The
banks can focus on strategic consumer groups to maximize its revenues from Internet banking.
The experiences of the global economies suggest that banks cannot avoid the Internet banking
phenomenon, but to gain a competitive advantage, they must structure their business models to
suit to Indian conditions.

CHAPTER- 8
SUGGESTIONS

CHAPTER- 8
SUGGESTIONS
 Determine the parameters of the customers' “zone of tolerance”. This is important because
managers need to know at what point customers cease to be satisfied with the core service they
are receiving. Due to resource restrictions, in some instances it is not possible for institutions
to provide everything that customers want. Knowledge of the zone of tolerance allows
institutions to allocate resources accordingly.
 Ascertain which are the determinants of service quality based on the different types of
technology. This study has taken a generalised perspective on electronic banking, however the
authors acknowledge the effect the different technologies might have on perceptions of quality.
 Another area of further research is the replication of this study in other countries. This will
provide insights relative to the impact of culture on the evaluation of service quality in
electronic banking. This is considered an important issue due to the nature of the global market
economy in which banking institutions operate.

CHAPTER- 9
BIBLIOGRAPHY

CHAPTER- 9
BIBLIOGRAPHY
1. Agarwal, R, Rastogi, S & Mehrotra, A., “Customers ’perspectives regarding e-banking in

an emerging economy,” Journal of Retailing and Consumer Services, vol. 16, pp. 340–351,
2009.
2. Aladwani, A., “Online Banking: A Field Study of
3. Drivers, Development Challenges, and Expectations,” International Journal of Information
Management, vol. 21, pp. 213-225,2001.
4. Aldas-Manzano, J, Lassala-Navarre, C, Ruiz- Mafe, C & Sanz-Blas, S., “The role of
consumer innovativeness and perceived risk in online banking usage,” International Journal
of Bank Marketing, vol. 27, no. 1, pp. 53-75, 2009.
5. Al-Hajri, S & Tatnall, A., “Technological Innovation and the Adoption of Internet Banking
in Oman,” The Electronic Journal for Virtual
6. http://www.onlineresearchjournals.com/ajbe/art/62.pdf
7. file:///C:/Users/HP/Downloads/2088-Article%20Text-7284-1-10-20090727.pdf
8. https://www.hdfcbank.com/nri_banking/ways_to_bank/default.htm

CHAPTER- 10
APPENDICES

QUESTIONNAIRE
(Survey Related to Net Banking & Different Products of HDFC Bank)
1) Name :-
2) E mail Id:-
3) Age:-
4) Gender
(a) Male
(b) Female
(c) Other
5) Occupation
(a) Businessman
(b) Private Employee
(c) Government Employee
(d) Student
(e) Retired
5) Do you have an account with HDFC Bank?
(a)Yes
(b)No
6) What type of account do you have with HDFC Bank?
(a) Saving Account

(b) Current Account
(c) Salary Account
(d) Loan Account
(e) Deposit Account( FD/RD)
7) Do you use Net Banking ?
(a) Yes
(b) No

8) Why you do not use Net Banking ?
(a) Unaware
(b) Complicated to use
(c) Security issue
(d) Others
9) Why do you use Net Banking ?
(a) Money Transaction

(b) Document updation
(c) Investment
10) Are you Aware of SMS Banking ?
(a) Yes
(b) No
11) Are you aware of EVA ?
(a) Yes
(b) No
12) Are you aware of Payzapp ?
(a) Yes
(b) No

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SUMMER TRAINING REPORT

CUSTOMER PERCEPTION TOWARDS NET BANKING

THE SERVICES PROVIDED BY HDFC

SUBMITTED TOWARDS THE PARTIAL FULFILMENT OF

THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF

POST GRADUATE DIPLOMA IN MANAGEMENT

Mr. Atul Arora Shilpi Ghosh

Associate Professor GM18213

Summer Internship Report | 1

(Name of the Student)

Summer Internship Report | 2

Summer Internship Report | 3

This is to certify that the work reported in SUMMER INTERNSHIP

(Signatureof Faculty Guide)

Summer Internship Report | 4

Summer Internship Report | 5

Summer Internship Report | 6

Summer Internship Report | 7

Summer Internship Report | 8

Summer Internship Report | 9

Internet Banking In India

Summer Internship Report | 10

Technological innovations are having significant importance in human general and

Perceived Usefulness of Internet Banking

Perceived Ease on Use of Internet Banking

Summer Internship Report | 11

Customer Relations on Bank

Summer Internship Report | 12

EVA (Banking Chatbot)

Summer Internship Report | 13

Services through Net Banking

Features and Benefits of Net Banking

Some things you can do with Net Banking are:

Summer Internship Report | 14

How to Register for Net Banking?

The many ways through which you can register are:

Summer Internship Report | 15

 Download the form

Insta IPIN Facility

Summer Internship Report | 16

One need to be separately registered for this service.

Which transactions are covered under Third Party Transfer?

Summer Internship Report | 17

Third Party Transfer Limits

Summer Internship Report | 18

NEFT transactions on Net Banking are charged as below:

RTGS transactions are charged as below:

Services through Mobile Banking

Features of SMS Banking

 View balance details

Summer Internship Report | 19

Features of Phone Banking

Summer Internship Report | 20

Summer Internship Report | 21

PROFILE OF HDFC BANK

Incorporation Year 1994

Ownership Group HDFC Group

Headquarter Mumbai, Maharashtra, India

Chairman Deepak S. Parekh

Managing Director Aditya Puri

Chief Financial Officer Sashidhar Jagdishan

COMPANY’s OWN WORDS

To our shareholders, our mission is to optimize returns.