1 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Internet banking (or E-banking) means any user with a personal computer
and a browser can get connected to his banks website to perform any of the
virtual banking functions. In Internet banking system the bank has a
centralized database that is web- enabled. Internet banking is the term used
for new age banking system. Internet banking is also called as online banking
and it is an outgrowth of PC banking. Internet banking is also called as online
banking and it is an outgrowth of PC banking. Internet banking uses the
internet as the delivery channel by which to conduct banking activity, for
example, transferring funds, paying bills, viewing checking and savings
account balances, paying mortgages and purchasing financial instruments and
certificates of deposits. Internet banking is a result of explored possibility to
use internet application in one of the various domains of commerce. It is
difficult to infer whether the internet tool has been applied for convenience of
bankers or for the customers ‘convenience. But ultimately it contributes in
increasing the efficiency of the banking operation as well providing more
convenience to customers. Without even interacting with the bankers,
customers transact from one corner of the country to another corner.

There are many advantages of online Banking. It is convenient, it isn’t bound

by operational timings, there are no geographical barriers and the services
can be offered at a minuscule cost (IAMAI ‘s, 2006). Electronic banking has
experienced explosive growth and has transformed traditional practices in
banking. In its very basic form, e-banking can mean the provision of
information about a bank and its services via a home page on the World Wide
Web (WWW). More sophisticated e-banking services provide customer
access to accounts, the ability to move their money between different
accounts, and making payments or applying for loans via e-Channels. The
term e-banking will be used in this book to describe the latter type of
provision of services by an organization to its customers. Such customers
may be either an individual or another business. To understand the electronic
distribution of goods and services, the work of Report and Sviokla (1994;
1995) is a good starting point. They highlight the differences between the
physical market place and the virtual market place, which they describe as an
information-defined arena. In the context of e-banking, electronic delivery of
services means a customer conducting transactions using online electronic
channels such as the Internet? Many banks and other organizations are eager
to use this channel to deliver their services because of its relatively lower
delivery cost, higher sales and potential for offering greater convenience for
customers. But this medium offers many more benefits, which will be
discussed in the next section. A large number of organizations from within
and outside the financial sector are currently offering e-banking which
include delivering services using Wireless Application Protocol (WAP)
phones and Interactive Television. Many people see the development of e-
Banking as a revolutionary development, but broadly speaking, e-banking
could be seen as another step-in banking evolution. Just like ATMs, it gives
consumers another medium for conducting their banking. The fears that this
channel will completely replace existing channels may not be realistic, and
experience so far shows that the future is a mixture of―clicks (e-banking)
and mortar (branches)‖. Although start-up costs for an internet banking
channel can be high, it can quickly become profitable once a critical mass is
achieved.
1.2 NEED AND SIGNIFICANCE OF THE STUDY

 Identifying real image of the bank in terms of customers;

satisfaction and preferences.
 For knowing customers’ expectations from the bank.
 For improving services and customer relationship management
practises (CRM)
 For promoting Ethics and human values in the banks.
 Useful for the prospects customers who wants to invest in the banks.
 Getting clear picture about comparative analysis of public and
private sector banks services and commitments.
 Useful to improve marketing practises of banking services.

1.2 STATEMENT OF THE PROBLEM

The title of the research is a project report one banking with special reference
to sbi and icici bank. This indicates that how far the customers of SBI and
ICICI are satisfied with the services provided by their bank. To analyse this
in the research primary data is collected through questionnaires. Two types of
questionnaires are developed. One filled up by customers of SBI and ICICI
banks and another filled up by employees of SBI and ICICI. The collected
data has been analysed to know that which banks’ customers are more
satisfied.

1.3 OBJECTIVE OF THE STUDY

 To study the various E-Banking services provided by the Indian banks

to the customers
  To study the perception of E-Banking among the customers of Public
(SBI) and private (ICICI) bank
 To study the adoption of E Banking by the customers of ICICI and
SBI bank.
 To compare the perception and adoption of E-Banking services in
ICICI and SBI bank.

1.5 SCOPE OF THE STUDY

Scope of the study is to get an overview of the E- Banking services in India

with special reference to public (SBI)and private (ICICI) Bank and to
compare the adoption of E Banking among the public and private sector bank
customers. The study mainly focuses on the customers of three branches of
ICICI and SBI bank of Delhi region

1.6 LIMITATIONS OF THE STUDY

The information collected is mainly primary data and the accuracy is subject
to the responses received. Due to lack of time the good amount of data
collection was not possible so research had to rely on limited data of sample
size of 100 respondents only. The research was only focused on two banks.
The ICICI bank was taken as representative of Private sector Bank and SBI
was taken as representative of Public Sector Bank. The research only focused
on few branches of Delhi region. The customers were not interested in filling
questionnaire because of their busy schedule.

1.7ORGANIZATION OF THE REPORT

Chapter 1: Introduces the background, statement of the problem, need and
significance, scope and objectives and also the limitations of the study
Chapter 2: This includes the literature review for the study reviewed from
various authors
Chapter 3: This deal with the theoretical approach in regard to E-banking
Chapter 4: deals with the research methodology which is done on certain data
Chapter 5: Includes data analysis and interpretation through tables, charts
related to the study
Chapter 6: Includes findings related to analysis
Chapter 7: Includes the suggestions based on the findings related to the study
Chapter 8: includes the final conclusion based on whole study
 CHAPTER-2
LITERATURE REVIEW
2 LITERATURE REVIEW
2.1 MEANING OF LITERATURE REVIEW

• Provides an overview and a critical evaluation of a body of literature

relating to a research topic or a research problem.
• Analyses a body of literature in order to classify it by themes or
categories, rather than simply discussing individual works one after
another.
• Presents the research and ideas of the field rather than each individual
work or author by itself. A literature review often forms part of a larger
research project, such as within a thesis (or major research paper), or it
may be an independent written work, such as a synthesis paper.

2.2 PURPOSE OF A LITERATURE REVIEW

A literature review situates your topic in relation to previous research

and illuminates a spot for your research. It accomplishes several goals:
• provides background for your topic using previous research.
• shows you are familiar with previous, relevant research.
• evaluates the depth and breadth of the research in regards to your topic.
• determines remaining questions or aspects of your topic in need of
research

2.3NATIONAL LITERATURE REVIEW

This chapter deals with the various research studies related to the customer
perception towards E banking. The relationship between the Internet banking
and the traditional banking activity is also reviewed.

A critic on various studies on customer perception:

Rajesh Kumar Srivastava (2011) investigated that Internet banking is still
at infancy stage in the world. Many studies focused on usage of internet
banking but many factors on non-usage were overlooked. This research was
carried out to validate the conceptual model of internet banking. The causes
were identified and researched through correcting the causative factors so
that internet banking can be used by more people. The research is focused on
what are the customer ‘s perceptions about internet banking and what are the
drivers that drive consumers. How consumers have accepted internet banking
and how to improve the usage rate were the focus of research area in this
study. Qualitative exploratory research using questionnaire was applied. 500
respondents were selected for study after initial screening. They were all
bank customers. The study revealed that education, gender, income plays an
important role in usage of internet banking. Not much research has been done
on these areas as they were focused more on the acceptance of technology
rather than on people. The research corroborated the conceptual framework
stating that if skills can be upgraded there will be greater will to use internet
banking by consumers. Inhibitory factors like trust, gender, education,
culture, religion, security, and price can have minimal effect on consumer
mindset towards internet banking.

Corrocher (2011) investigated the determinants of the Internet technology

adoption for the provision of banking services in the Italian context and also
studied the relationship between the Internet banking and the traditional
banking activity, in order to understand if these two systems of financial
services delivery are perceived as substitutes or complements by the banks.
According to the results of the empirical analysis, banks seem to perceive
Internet banking as a substitute for the existing branching structure, although
there is also some evidence that banks providing innovative financial services
are more inclined to adopt the innovation than traditional banks. Technology
has had a remarkable influence on the growth of service delivery portions.
Prof.K.T. Geetha1 & V. Malarvizhi (2011) had investigated that the factors
which are affecting the acceptance of e-banking services among the
customers and also indicates level of concern regarding security and privacy
issues in India collected from 200 respondents through a structured
questionnaire. Descriptive statistics was used to explain demographic profile
of respondents and Factor and Regression analyses were used to know the
factors affecting e-banking services among customer in India. The finding
depicts many factors like security and privacy and awareness level increased
the acceptance of e-banking services among Indian customers. The finding
shows that if banks provide them necessary guidance and ensure safety of
their accounts, customers are willing to adopt e-banking.

Dr.Saroj K. Datta (2010) concluded that the factors which are affecting the
acceptance of e-banking services among adult customers and also indicates
level of concern regarding security and privacy issues in Indian context.
Primary data was collected from 200 respondents, above the age of 35,
through a structured questionnaire. Statistical analysis, descriptive statistics
was used to explain demographic profile of respondents and also Factor and
Regression analyses were used to know trend of internet use and factors
affecting e-banking services among adult customer in India. The finding
depicts many factors like security & privacy, trust, innovativeness,
familiarity, awareness level increases the acceptance of E Banking services
among Indian customers. The finding shows that in spite of their security and
privacy concern, adult customers are willing to adopt online banking if banks
provide him necessary guidance. Based on the results of current study, Bank
‘s managers would segment the market on the basis of age group and take
their opinion and will provide them necessary guidance regarding use of
online banking.

Elizabeth Daniel (2009) concluded that the newest delivery channel to be

offered by the retail banks in many developed countries and there is wide
agreement that this channel will have a significant impact on the market.
Aims to quantify the current provision of electronic services by major retail
banking organizations in the UK and the Republic of Ireland. Additional in-
sight into the banks' adoption of this new channel is gained by exploring two
areas important in the analysis of new offerings, that is: an organization ‘s
approach to innovation; and their view of the current and future markets. By
use of a mailed questionnaire, it was found that 25 per cent of the banks in
the UK and the Republic of Ireland which responded to this survey are
already offering online transactional services to consumers in their homes.
The largest group of respondents (50 per cent) is those that are currently
testing or developing such ser- vices, while just 25 per cent of the
respondents were in organizations not providing or developing such services.
It is also found that the organization ‘s vision of the future, their prediction of
customer acceptance, which tends to be very low, and their organizational
culture of innovation are the most important of the suggested factors in their
adoption of electronic delivery.

Uppal and Rosy Chawla (2009) in their article entitled, “E-delivery

channel-based banking services: stated with globalization trends world over,
E-channels facilitates bank customers by providing 24 hours a day 7 days
week services, it provides more customer satisfaction.

Hsun, K.S. (2008), this study considers the coherence of the financial service
sector and adopts different observational variables to identify innovation
capital (training and R&D density) and process capital (IT system
sufficiency). The results show that human capital has a direct impact on both
innovation capital and process capital, which in turn affect customer capital;
while finally, customer capital affects business performance. In addition,
there is a negative relationship between process capital and customer capital
in the financial service sector. It suggests that in the financial service sector,
customer satisfaction relies on a sufficient degree of training and R&D
density. Intemperate investment on the support of e-banking operation
systems may not be a good answer.

Malhotra, P. & Singh, B. (2007) stated that the larger banks, banks with
younger age, private ownership, and higher expenses for fixed assets, higher
deposits and lower branch intensity evidence a higher probability of adoption
of this new technology. Banks with lower market share also see the Internet
banking technology as a means to increase the market share by attracting
more and more customers through this new channel of delivery. Further, the
adoption of Internet banking by other banks increases the probability that a
decision to adopt will be made. An understanding of the factors affecting this
choice is essential both for economists studying the determinants of growth
and for the creators and producers of such technologies. From this
perspective, understanding the factors determining the adoption of
technology becomes highly relevant from the policy point of view. Moreover,
the studies on the adoption of financial innovations are related to developed
markets, e.g. US or European banking. Hence, this paper contributes to the
empirical literature on diffusion of financial innovations, particularly Internet
banking, in a developing country.

Kamiya (2006) explains that Indian banks are trying to make your life easier.
Not just bill payment, you can make investments, shop or buy tickets and
plan a holiday at your fingertips. In fact, sources from ICICI Bank tell us,
"Our Internet banking base has been growing at an exponential pace over the
last few years. Currently around 78 per cent of the bank's customer base is
registered for Internet banking." To get started, all you need is a computer
with a modem or other dial-up device, a checking account with a bank that
offers online service and the patience to complete about a one-page
application--which can usually be done online. You can avail the following
services: Bill payment Services, Fund Transfer, Credit Card, Internet
shopping, and Investment though Internet etc. Due to the Internet banking the
life of an individual becomes easy and raises the standard of life of the
humans.

Veneeva (2006) explains that the world is changing at a staggering rate and
technology is considered to be the key driver for these changes around us.
Many activities are handled electronically due the acceptance of information
technology at home as well as at workplace. Internet can be seen as a truly
global phenomenon that has made time and distance irrelevant to many
transactions. The evolution of electronic banking started from the use of
automatic teller machines (ATM) and has Passed through telephone banking,
direct bill payment, electronic fund transfer and the revolutionary online
banking. The future of electronic banking according to some is the
acceptance of WAP enabled banking and interactive-TV banking (Petrus &
Nelson, 2006). But it has been forecasted that among all the categories,
online banking is the future of electronic financial transaction. The rise in the
e-commerce and the use of internet in its facilitation along with the enhanced
online security of transactions and sensitive information has been the core
reasons for the penetration of online banking.

2.3 INTERNATIONAL LITERATURE REVIEW

Shaza W. Ezzi (April 2014) In their research paper titled “A Theoretical

Model for Internet Banking: Beyond Perceived Usefulness and Ease of Use”
tried to inquired different types of electronic banking like ATM’s, telephone
banking, and electronic funds transfer, Internet banking like has evolved from
consumers’ needs to have superior access to banking services clear of most
banks teller-staffed, normal operating hours. Additionally, Internet banking
has grown swiftly from the recent and the span increases in ecommerce.
Internet banking (IB) continues to govern the landscape of electronic banking
as consumers continue to use IB to complete schedule banking transactions in
addition to conducting on-line sales and purchasing. This study presents a
theoretical model considered to help researchers and practitioners better
understand the acceptance and adoption of Internet Banking. The proposed
model maybe particularly useful in developing nations where consumers are
loath to use Internet Banking even when the services are available. However,
a review of several studies that have investigated consumers’ acceptance of
Internet banking services from a multiplicity of perspectives have not reached
a clear consensus of the factors that contribute to overall consumer
acceptance and adoption. The paper concludes with discussions of the
managerial implications and avenues for future research.

Nabil Hussein Al-Fahim (2013) In his research titled “An tentative Study of
Factors distressing the Internet Banking espousal: A Qualitative Study among
Postgraduate Students” tried to find out the factors that affect the internet
banking espousal among postgraduate’ students in International Islamic
University Malaysia (IIUM).Approach- Semi structured interviews with eight
informant; four adopters and four non-adopters on postgraduate’ students
were conducted to explore this issue. The results revealed that adopters and
non-adopters realized that internet banking (IB) has quite a lot of benefits and
amenities. However, non-adopters were concerned about some factors like
trust, ease of use, awareness and security. The results also showed that
adopters had positive influence on use of online banking and they did not
have problems with these factors because they had sufficient knowledge and
experience in using online banking. The findings are important to enable
bank Executives to have a better understanding of clients’ perception to adopt
internet banking. This will help banks’ managers and owners formulate
strategies that could significantly affect IBA among their customers.

NeeliPrameela, Dr. B. Abdul Azeem& K.V. Geetha Devi (2012) This

study is a challenge to Owing to the high costs occupied in increasing the
current client base, one of the main goals of banks and other monetary
services providers, which operate through the internet, should be to develop
customer allegiance in order to improve the results. To achieve this aim,
these companies face most imperative challenge in providing and
maintaining service quality. Service quality is an input of customer trust
which becomes satisfaction and lead to loyalty as an output. But the research
in the development of e-loyalty is scarce and partial. This paper attempts to
accumulate invented story in order to understand the overall structure of the
formation of e-loyalty. The literature reviewed provides underlying patterns
of relationships between e-banking loyalty and its influencing factors. Such
understanding is relevant for academicians and researchers for furthering the
work in this field. The insights into the previous studies, considered for this
paper, are discussed and suggestions for future research are provided.

Bindiya Tater, Manish Tanwar, and Krishna Murari (2011) In their

research titled on “CUSTOMER ADOPTION OF BANKING
TECHNOLOGY IN PRIVATE BANKS OF INDIA” This paper explores the
perception of Indian customers towards the use of technologies with respect
to such factors as convenience, privacy, security; ease of use, real time
accessibility and accurate record of varied transaction that enable customer’s
adoption of Banking Technology. Other factors such as slow transfer speed,
technical failure, frauds and unawareness among customers that make
hindrance in adoption, are also tested. The results show that demographic
variables such as gender, age, qualification and income play a positive role in
adoption of banking technology. All the banks are using information
technology as a strategic vehicle to stay competitive against other players.
There is no significant difference between adoption rates of banking
technologies by the customers of different private banks. The paper also
shows that banking technology helps in increasing customer satisfaction,
customer loyalty, improvised growth, and performance of the banks.

Mary WaithiraMaitha (2010) In his research titled on “The Effects Of E-

Banking in Commercial Banks in Kenya in Promoting International
Business” The essential role of banks in international and national economies
is to is to connect those who have capital (such as investors or depositors),
with those who seek capital (such as individuals wanting a loan, or
businesses wanting to grow) which is the general definition of banking
(Macesich (2000)). Banks are a fundamental component of the financial
system, and are also active players in the financial markets. With continuing
technological innovation and competition among existing banking
organizations and new market entrants has allowed for a much wider array of
electronic banking products and services for retail and corporate banking
customers. Hence the introduction of E-Banking services which include
telephone banking, online banking, SMS Banking, Mobile Banking and
Interactive TV- Banking. From the research project the Banks that were
offering Ebanking Services only offered limited E-Banking services. The
main benefits were also captured which included cost savings, reaching new
segments of the population, efficiency, better customer service and
satisfaction. Basing on these facts the study’s main objectives was to identify
effects of E-banking services on the commercial banks in Kenya on
promoting international business while establishing how its adverse effects
are mitigated.

Rita E. Ochuko, Andrea J. Cullen, Daniel Neagu (2009) In their research

paper “Overview of Factors for Internet Banking espousal”. The study
presents the major factors for Internet banking embracing and compares the
levels of adoption transversely countries, in order to make out more easily
what factors to consider most while only if banking services over the
Internet. Based on preceding studies, web security, Internet usage, economy
status, high branch concentration, competition, government prioritization
regulations, and literacy level were acknowledged as the major factors
affecting Internet banking adoption. This study uses fuzzy inference systems
(FIS) to define the adoption rate. Our experimental results show that
sanctuary is the most important factor because no matter how high
government prioritization, literacy level, Internet users, and antagonism
among Internet service providers are, as long as there are low security levels,
the adoption rate will be at the lowest level. We terminate that, overall, the
banks-specific factors are the main drivers for Internet banking adoption.

Rajesh Kumar Srivastava (2007) In his research paper “Customer’s

perception on usage of internet banking” This paper present to Internet
banking is still at infancy stage in the world. Many studies focused on usage
of internet banking but many factors on non-usage were overlooked. This
research was carried out to validate the conceptual model of internet banking.
The causes were identified and researched through correcting the causative
factors so that internet banking can bused by more people. This will help the
banking operations to be more cost effective. The research is focused on what
are the customer’s perceptions about internet banking and what are the
drivers that drive consumers. How consumers have accepted internet banking
and how to improve the usage rate were the focus of research area in this
study. Qualitative exploratory research using questionnaire was applied. 500
respondents were selected for study after initial screening. They were all
bank customers. The study revealed that education, gender, income plays an
important role in usage of internet banking. Not much researches been done
on these areas as they were focused more on the acceptance of technology
rather than on people. The research corroborated the conceptual framework
stating that if skills can be upgraded there will be greater will tousle internet
banking by consumers. Inhibitory factors like trust, gender, education,
culture, religion, security, and price can have minimal effect on consumer
mindset towards internet banking.

Pete Babick (1992) In his research titled “Customer Satisfaction-How good

is good enough” tried to find out the importance of customer satisfaction in
terms of market share and profitability. The research concluded that customer
satisfaction has a direct and linear relationship with profits. More the
satisfaction, higher will be the profits for the service companies.
CHAPTER-3
THEORETICAL FRAMEWORK
 3 THEORETICAL FRAMEWORKS

3.1DEFINITION

Electronic banking can be defined as the use of electronic delivery channels

for banking products and services, and is a subset of electronic finance (1).
The most important electronic delivery channels are the Internet, wireless
communication networks, automatic teller machines (ATMs), and telephone
banking. Internet banking is a subset of e-banking that is primarily carried
out by means of the Internet. The term transactional e- banking is also used to
distinguish the use of banking services from the mere provision of
information.

3.2 FEATURES

 Use Bank-to-Bank Transfer

 See your account transactions and history>
 Pay bills without writing checks
 Transfer money between your accounts
 Sign up for paperless statements
 Set up account alerts and reminders
 View images of processed checks
 View reports
 Earn cash back with Purchase Rewards

3.3 TYPES


 Internet Banking helps you manage many banking transactions online via
your PC.


An automated teller machine or automatic teller machine (ATM) is an

electronic computerized telecommunications device that allows a financial
institution’s customers to directly use a secure method of communication to
access their bank accounts, order or make cash withdrawals (or cash
advances using a credit card) and check their account balances without the
need for a human bank teller.


By dialling the given Telebanking number through a landline or a mobile

from anywhere, the customer can access his account and by following the
user-friendly menu, entire banking can be done through Interactive Voice
Response (IVR) system.


A smart card usually contains an embedded 8-bit microprocessor (a kind of

computer chip). The microprocessor is under a contact pad on one side of the
card. Think of the microprocessor as replacing the usual magnetic stripe
present on a credit card or debit card.


Debit cards are also known as check cards. Debit cards look like credit cards
or ATM (automated teller machine) cards, but operate like cash or a personal
check. Debit cards are different from credit cards. While a credit card is a
way to “pay later,” a debit card is a way to “pay now.” When you use a debit
card, your money is quickly deducted from your checking or savings account.


An e-Cheque is the electronic version or representation of paper cheque.

Other Forms of Electronic Banking
  Direct Deposit

 Electronic Bill Payment

 Electronic Check Conversion

 Cash Value Stored, Etc

3.4 ADVANTAGES AND DISADVANTAGES

Advantages

 Benefits and Rewards

A lot of online banks offer more benefits and rewards to their customers that
not only benefit the bank but also benefit their customers. Online banks are
willing to offer higher interest rates and better transfer services to their
customers who regularly use online banking. This happens partly due to the
fact that the banks have to bear reduced costs when serving online customers.
Therefore, the overall banking experience is obviously better than that of
visiting a physical bank branch and handling the same transaction.

 Notifications and Alerts

Customers are instantly alerted or notified about new changes in the system.
From changes in the policy to logins from new devices, customers get instant
notifications and alerts. However, if you’re associated with a real bank, you
would probably get a text alert or a customer service agent will call you to
notify about major changes. Chances are, you’re missing out on a lot of
changes.

 Faster Transactions
You don’t have to wait for your turn to transfer funds – you can do that with a
single tap of your finger or a single click of your mouse. Funds from one
account will be transferred to another in a matter of a few seconds. Anything
that requires quick payments can be done with the help of e-banking.

 Easy Access

Customers can enjoy easy access with online accounts by simply typing
in the log-in credentials. In addition to that, customers can also handle
several accounts at a time. Since the internet remains the medium of
connection, users can also access different accounts in different banks
from a single device.

 Lesser Limitations

location of the bank branch, holidays, etc. You don’t have to wonder if
it’s a holiday with online banking, or what time is it to perform a
transaction. Be it Sunday or the middle of the night and you will still be
able to do everything (and even more) through their app or website as it’s
available twenty-four hours a day, throughout the year.

 Better Customer Service

Banking websites and apps come with customized web pages to solve
customer queries and often have a dedicated ‘Frequently Asked Question’
(FAQs) section that helps in answering common customer queries.

You can chat with a customer service agent or call them if you need more help.
This not only saves the time of the customers but also that of the bank
employees who can shift their focus to more important things.
Disadvantages

 Difficult for Beginners

Initially, customers are scared of losing their money and are often hesitant to

explore all the options and features that are available on the website or on the
app.New users often give up and stick to traditional banking if timely
assistance isn’t provided.

 Trust and Responsibility

Fake websites and phishing sites are common in this age of technology. Can
you really trust all websites? Is it wise to trust an online site with all
your money? What if the website folds up and all your money is gone? This
wouldn’t happen in a real bank. There is trust between the bank and their
customers – you know your money is safe with the bank – because they take
responsibility for your money. Real banks are permanent and reliable while
some websites are not.

 Inconvenience

Sure, online banks are open throughout the year but they are a serious cause
of inconvenience in certain instances. For example, if you get locked out of
your account you will be unable to perform any banking transactions.
However, in a real bank, you establish relationships with the staff, who know
you on a personal level and will be willing to assist you in such cases.

You wouldn’t have to be on the phone explaining your situation to an

unknown customer service agent which by the way, might also take several
days. Also, a few online banks don’t allow cash deposits. To deposit cash,
you will be required to email a check and transfer money from another
account or bank, or use their e-check deposit service.

 Security Issues

Sure, most banks are well-reputed and established, there are times when you
face security issues. There’s always a risk of actual and/or identity theft. It’s
also possible to get unauthorized access to your account via a stolen or
hacked log-in credentials.

 Technology Issues

If you don’t have a decent connection or there are bugs in the software, or
say, there is a power cut or maybe the servers have gone down – websites are
bound to crash and you will undoubtedly face a lot of technological issues.
While you may get various types of customer service at the moment but
sooner or later, you will get frustrated. However, someone is always around
to help you in a real bank.
 CHAPTER-4

RESEARCH METHODOLOGY
4RESEARCH METHODOLOGY

The study employs primary data as well as secondary data. Secondary data
was collected from different published sources. Primary data was collected
by structured survey. The survey was created online and link sent to the
respondents using convenience sampling. In the questionnaire, various
internet banking applications were included from previous research. Later,
structured questionnaire containing 15 items was developed (8 for general
perception and 7 for internet banking features) for the purpose of data
collection.

4.1 OBJECTIVES

1.To find out customer relationship with banks.

2. To know that how far customers are aware about various services provided
by banks.
3. To know customer satisfaction about various services and process in
transactions.
4.To know employee’s opinions about promoting services and customer
dealings.
5. To know CRM practises opined by employees.
6. To know and compare overall satisfaction of customers regarding both
bank services.

4.2 HYPOTHESIS

H01: There is no equal preference of the various e banking services among

SBI bank.
HA1: There is equal preference of the various e banking services among SBI
bank.
H02: There is no equal preference of the various e banking services among
ICICI bank.
HA2: There is equal preference of the various e banking services among
ICICI bank.
H03: There is no equal preference of usage of the e banking services among
SBI bank.
HA3: There is equal preference of usage of the e banking services among
SBI bank.
H04: There is no equal preference of usage of the e banking services among
ICICI bank.
HA4: There is equal preference of usage of the e banking services among
ICICI bank.
H05: There is no significant difference in the perception of E banking
services of customers of SBI and ICICI bank.
HA5: There is a significant difference in the perception of E banking services
of customers of SBI and ICICI bank.
H06: There is no significant difference in the usage of E banking services by
the customers of SBI and ICICI bank.
HA6: There is a significant difference in the usage of E banking services by
the customers of SBI and ICICI bank.
4.3 RESEARCH DESIGN

In this thesis, a study of comparative analysis regarding SBI and ICICI

banking services with reference and view point of customers’ preferences has
been conducted. An attempt is made to give an overview of customers
opinions, suggestions to understand CRM practises of the banks. Appropriate
and suitable analysis is also made to justify this topic; beliefs of customers,
views regarding the services of the banks through questionnaire and influence
of Age-group on customers preferences about selection of a bank and
satisfaction from therein.

4.4 SOURCES OF DATA

The study is undertaken on the basis of all details about services from SBI
and ICICI. It includes the banks profile, evolution and developmental phases,
awards won by both the banks and other necessary details. The primary data
is also playing very vital role in this study which is collected through
questionnaires prepared separately for selective bank branches customers. In
a nutshell data is as follows in this study.
 SBI and ICICI banks’ websites on internet.
 Authenticated websites on internet
 Website of RBI (Reserve bank of India)
 Information collected to know the preferences and opinions would be
mainly from primary sources such as:
 Customers of some of the cities.

4.5 PRIMARY AND SECONDARY DATA

Primary data was collected by means of questionnaire. A Structured
questionnaire was developed and randomly been issued to the users of SBI
and ICICI Bank. The primary data has been collected from 33 respondents.
Secondary data used for the present study includes journals, magazines,
websites of banks, and prior research reports of both the banks

4.6 POPULATION

4.7 SAMPLE DESIGN

Of the different banks operating in the study area, only the State Bank of
India (SBI) and ICICI were selected purposely for the present study since
SBI happens to be the biggest commercial bank in the country and the ICICI
is the leading private sector bank in the study area. Moreover, these two
banks are found to be having more branches covering almost all places of the
study area. All the branches of these two banks were selected using Census
method. From these bank branches, the researcher had selected 60 sample
customers, 33 customers from each bank by adopting judgement sampling
method for the study in order to ascertain the attitude of customers towards
services.

4.8 SAMPLING METHOD

Sampling is the process or technique of selecting a

representative part of population for the purpose of determining the
characteristics of the whole population.

It is a define plan for obtaining a sample from a given population. It refers

to the technique or the procedure, the researcher would adopt in selecting
items for sampling.
The sampling method used in the study is convenient
population. It is a non- profitability sampling technique where subject is
selected because of convenient accessibility and proximity to the
researcher.

4.9METHOD OF DATA COLLECTION

Both the primary and secondary data collection method has been employed to
conduct the research work the survey has been carried out by the means of
structured questionnaire which consist of 15 questions.

4.10 DRAFTING A QUESTIONNAIRE

Questionnaire

I am a MBA student at SNGCE, KTU University I am conducting a market

research on “Customer Perception towards e-banking". I request you to fill
up a small questionnaire regarding the e-banking services provided by your
bank. The privacy will be maintained and the data will strictly be used for
educational purposes only.

1.Name:

2.Gender:

Male Female

3. Age Group:

o 18-25
o 26-35
o 36-45
 o 46-60
o 60+

4. Educational Qualification:

o 12th
o Graduate
o Post Graduate
o Professional

5. Occupation:

o Student
o Service
o Business man
o Retired Individual
o Others please specify:

6. Are you aware of E- Banking services?

o Yes
o No

7. Do you use E- Banking services?

o Yes
o No

8.If the above option is No specify the reason.

o Never heard of internet banking

o Concerned about security
o Not available to my bank
 o Not have enough knowledge
o Other:

9. What is the name of the bank you have an internet banking account with?

o SBI
o ICICI

10. What is the most important reason that you choose this particular
bank?

o The brand name of the bank

o The excellent service offered by this bank
o Easy to access
o Other:

11. How long have you been using the internet services?

o Less than a month

o 1 to 6 months
o 6 to 12 months
o More than a year

12. What is the frequency of usage of E-Banking?

o 5 to 6 times/week
o 2 to 3 times /week
o Once in a week
o Once in a month
o Occasionally
13. What are the E-Banking services that you use which are provided by your
bank?

o ATM
o Electronic Fund Transfer
o Debit card
o Credit card
o Bill payment
o Balance check and Bank Statement
o Tax payment
o Mobile banking

14. Please rate the following Services?

Services Excellent good neutral poor n/a

ATM o o o o o

Electronic Fund Transfer o o o o o

Debit Card o o o o o

Credit Card o o o o o

Bill Payment o o o o o

Balance Check and Bank o o o o o

Statement
Tax Payment o o o o o

Mobile Banking o o o o o

15. Please specify the frequency of use?

Services 5 to 6 2 to 3 Once in Once in a occasionally
times/week times/week a week month
ATM o o o o o
Electronic Fund Transfer o o o o o
Debit Card o o o o o
Credit Card o o o o o
Bill Payment o o o o o
Balance Check and Bank o o o o o
Statement
Tax Payment o o o o o
Mobile Banking o o o o o

4.11 PILOT SURVEY (RELIABILITY AND VALIDITY OF THE

INSTRUMENT)

4.12 DATA ANALYSIS TECHNIQUES

 Mean
 Standard Deviation
 T-Test
CHAPTER-5
 DATA ANALYSIS

5 DATA ANALYSIS

This chapter deals with the statistical analysis of data collected using the
research instrument. Analysis of the data was carried out by using both MS
Excel and Google forms to understand the Adoption of E-Banking by Indian
Consumers-A Study of Private and Public Sector Bank

Overview:
In this chapter, the results of the empirical analysis are reported and
presented. The presentation proceeds with an analysis of descriptive statistics
of the variables under the study. The statistical program used for the analysis
and presentation of data in this research is the Google forms. To facilitate
ease in conducting the empirical analyses, the results of the descriptive
analyses are presented first, followed by the inferential statistical analysis.
All statistical test results were computed at the 2-tailed level of significance
accordance with the non-directional hypotheses presented.
DEMOGRAPHIC ANALYSIS

Questionnaires were distributed to customers of SBI and ICICI bank, with a

percentage of 68.8% and 31.3% respectively. The respondents, from which
data were collected from the customers having different level age. The
demographic profile of 32 respondents is summarized in the table 3.3. In SBI
bank the total respondents were 22 and in ICICI bank it was 10. The data
were collected at different designations which were divided into three levels
managers, officers and clerks.

TABLE 5.1 DEMOGRAPHIC PROFILE OF RESPONDENTS

Basis Variable Frequency Percent

Gender Male 18 56.3%

Female 14 43.8%
Total 32 100%

Analysis
From the above table it can be analyzed that, out of 32 (100%)
respondents 18 (56.3%) of them were male and 14 (43.8%) were female.
GRAPH 3.1

GRAPH DEPICTING THE GENDER CLASSIFICATION OF

RESPONDENTS
Interpretation

It can be inferred from the graph that most of the respondents where male
compared to the female respondents. About 56.3 % of the people responded
where male and the rest of the 43.7 % where female

TABLE 3.2
TABLE INDICATING THE AGE WISE CLASSIFICATION OF
RESPONDENTS
 Basis Variable Frequency Percent

Age 18-25 24 75%

26-35 6 18.8%
36-45 2 6.3%
46-60 0 0%
60+ 0 0%
Total 32 100%

Analysis
From the above table it can be interpreted that 24(75%) of the respondents
where of 18-25 age group, 6 (18.8%) where off age group 25-30,2(6.3%)
respondents where between the age of 36-45.

GRAPH 3.2
GRAPHICAL PRESENTATION OF RESPONDENTS AGE
Interpretation
It can be concluded from the graphical representations that, majority of the
responses were from the age group of 18-25 years when compared with
others. Least responses were from the age group of 31-40.

TABLE 3.3

TABLE DISPLAYING THE QUALIFICATIONS OF RESPONDENTS

 Basis Variable Frequency Percent

Qualification 12th 3 9.4%

Graduate 14 43.8%
Post graduate 8 25%
Professional 7 21.9%
Total 32 100%

Analysis

From the above table it can be analyzed that, out of 154 (100%)
respondents most of the respondents were students, that is 68 (44%). 18
respondents (12%) were business men, 51 (33%) were employees and
least 17 (11%) respondents were other category people. Most of the people
responded where a graduate that is contributing to around 90.6% of having
college education. From the above data it is the educated people who uses the
internet banking more and efficiently

GRAPH 3.3
GRAPH REPRESENTING THE QUALIFICATIONS OF
RESPONDENTS

Interpretation

From the above graph It can be concluded from the graphical representations
that majority of the respondents education is graduate by contributing around
14(43.8%) followed by post graduate with 8 (25%) and about 7(21.9%)
people where professional degree holders. There was only around 3 (9.4%) of
which having the education of 12th. Most of the respondents where holding a
degree which states most of them received formal college education

TABLE 3.4

TABLE DISPLAYING THE OCCUPATION OF RESPONDENTS

 Basis Variable Frequency Percent

Occupation Student 10 31.3%

Service 2 6.3%
Business man 8 25%
Retired person 0 0%
Others 12 37.5%
Total 32 100%

Analysis

From the above table it can be analyzed that, out of 32 (100%)respondents

most of the respondents were other category people, that is 12 (37.5%). 8
respondents (25%) were business men, %). 10 respondents (31.3%) were
students, 2 (6.3%) were employees and least respondents also.

GRAPH 3.4

GRAPH REPRESENTING THE OCCUPATION OF RESPONDENTS

Interpretation

From the above graph it can be concluded that most of the respondents
were students followed by employees. The least respondents were other
occupational people.

TABLE 3.5
TABLE DISPLAYING THE DATA OF RESPONDENTS BANK
 Bank Name Number of Percent
customers

Bank SBI 22 68.8%

ICICI 10 31.3%
Total 32 100%

Analysis

From the above table it can be analyzed that, out of 32 (100%) respondents
most of the respondents where SBI customers with 22 (68.8%) and the
remaining 10 (31.3%) are using ICICI

GRAPH 3.5
GRAPH REPRESENTING THE DATA OF RESPONDENTS BANK
Interpretation

From the above graph it can be concluded that most of the respondents are
customers of SBI with 22 (68.8%) and remaining 10 (31.3%) are ICICI
customers

5.2 DATA PRESENTATION:

TABLE 5.2.1NO OF USERS OF BANKS
.
Bank SBI 22 68.8%

ICICI 10 31.3%

TABLE 5.2.2USERS OF E BANKING.

Users Yes 30 93.8%

No 2 6.3%

Analysis
Around 93.8% of the customers uses e-banking. They are aware of the
possibilities e-banking can offer and they utilise that. By being most of them
are well educated, awareness regarding e-banking is good.
CHART 5.2.1
CHART SHOWING USERS OF E-BANKING

Interpretation

From the above graph it can be concluded that most of the customers were
using e-banking and 6.3% people weren't using it.Some being afraid of the
possibilities of exploitation of their data and money

TABLE 5.2.3PREFERENCE FOR ATM SERVICES.

ATM services Yes 32 100%
 No 0 0%

Analysis
From the table we can understand thataalllmost of the respondents where
using ATM services for transactions.

TABLE 5.2.4PREFERENCE FOR BILL PAYMENT

Bill payment Yes 12 37.5%

No 20 62.5%

Analysis
From the above table it displays that most of the respondents don’t use e
banking for bill payment still most of the respondents are using other means
to pay the bill irrespective of which bank they use.

TABLE 5.2.5PREFERENCE FOR EFT

EFT Yes 7 21.9%

25
No 79.1%

Analysis
From the above table to shows that almost 80% of the respondents were not
using electronic fund transfer only seven respondents were using electronic
fund transfer. Out of all the services the bank offered this is one of the least
used.

TABLE 5.2.6 PREFERENCE FOR MOBILE BANKING

 Mobile Banking Yes 29 90.6%

No 3 9.4%

Analysis
From the above table it displays that almost 90% of the people utilising the
possibilities of mobile banking other than ATM this is one of the most used e
banking service
Tables depicts that, in SBI bank the total respondents were 59 and the ICICI
bank total respondents are 49.the no. of users of e banking from both the
banks is 65 and rest 35 respondents were non users of the E Banking
services. The preference for the ATM services is 78% and the preference for
the bill payment is 71%.there were 62 respondents out of 100 were using
electronic fund transfer. And 655 of them uses debit and credit cards for
online shopping. The users of the mobile banking is 60% and non users of
mobile banking is 40%.

SUMMARY AND CONCLUSION

This part deals with the major findings and discussions based on the

objectives and hypothesis which were taken for the analysis of the study.

This also talks about the limitations of the study and scope for future

study.

OVERVIEW:

A summary of the research with the main findings has also been presented.

Revisiting of objectives is essential to understand whether the purpose and

aim of research has been achieved. Limitations of the study have been

pointed out. Finally, the chapter throws light on directions for future research.

Thorough in depth examination of the various dimensions of ADOPTION

OF E BANKING SERVICES BY THE CUSTOMERS OF SBI AND ICICI

BANK was conducted. The e-banking revolution has fundamentally

changed the business of banking by scaling borders and bringing about new

opportunities.

The basic objective of the research was to analyze the adoption and the

awareness of e-banking among the customers of Private sector (ICICI

Bank) and Public sector Bank (SBI). Six hypotheses were formulated to

analyze the preferences of various E Banking services among the customers

of ICICI and SBI Bank and also to compare and analyze if there is any

significant difference in the perception of E Banking services of ICICI and

SBI Bank.

FINDINGS

 In the study the number of respondents belonging to SBI (68.8%)

bank is more compared to ICICI bank (31.3%). The study revealed

that the internet banking is used by 93.8% of respondents. This

suggests that the E banking services is increasing in usage however

there is still a long way to go.

 Thestudy revealed that the frequency of male is more than the

frequency of female. The large number of e banking users i.e.24

come under the age of 18-25.and the least users of e banking are

senior citizens. This suggests that youths prefer using E Banking

services more than the older generation. Respondents with

 graduation were 43.8% followed by 21.9% of post graduate

respondents and 21.9% with professional degrees. Service going

people use e banking services more than the student and

businessman.

 The study tested if customers gave equal ratings to the eight identified

E Banking services. The study revealed that the SBI customers rated

ATMas number one followed by mobile banking in second and

Balance check in third position. They gave the least rating to book,

FD, DD, StopPayment. Similarly the customers of ICICI Bank rated

balance check in first and ATM, mobile banking, balance check

insecond, third and fourth position respectively. They rated tax

payment as least preferred.

 Further analysis was made to determine if there is any significant

difference in the perception of ICICI and SBI Bank towards rating of

different E Banking services. Independent sample t- test was applied

to the data and the result showed that the difference was insignificant.

The study concluded that both SBI and ICICI are providing efficient

services. The recent surveys have shown that SBI Bank has improved

upon the customer and internet banking services. Hence the customers

of SBI have equal advantages of E Banking services and there is not

much significant difference in perception of services by the customers

of two banks.
  The study tested if customers preferred equal usage of all the eight

identified E Banking services of SBI bank and ICICI bank They least

used tax payment facility .Similarly the customers of ICICI Bank

used ATM the most and Tax payment ,debit or credit card and bill

payment in second ,third and fourth position respectively . The

Electronic Fund Transfer was least used.

 From the feedback received through questionnaires filled by the

customers of SBI and ICICI bank, it is clear that most of the

customers are using the E Banking services provided by the banks.

LIMITATIONS:

Besides the success of the research work, there were certain limitations which

were faced by the researcher.

 The information collected is mainly primary data and the accuracy is

subject to the responses received.

 Due to lack of time the good amount of data collection was not

possible so research had to rely on limited data of sample size of 32

respondents only

 The research was only focused on two banks . The ICICI bank was

taken as representative of Private sector Bank and SBI was taken as

representative of Public Sector Bank

 The research only focused on few people of relatively small region

 The customers were not interested in filling questionnaire because of

their busy schedule.

SCOPE OF THE FURTHER STUDY

  In this research there is a wide scope for further study. The researcher

has taken only the some of SBI and ICICI Bank users in near under

the study, so the other branches in other places of SBI and ICICI

Banks could also be taken for study.

 The research is conducted in Kochi and a similar study can be

conducted in other areas to make the research results more specific.

 This study may also include large number of respondents from both

the banks.

 This study can be further extended to other Private and Public Sector

Banks.

The above findings reveal that the awareness of E Banking services, its

adoption and usage rate has increased with time but still many people are

unaware and many of them are non users. The findings of the paper have

lead to formulation of certain suggestions and recommendations for the

banks to increase the E Banking usage.

SUMMING UP:
Overall the result was that the customers of both the SBI and ICICI are aware

about the various e-banking services provided by the bank. The customers

not opting for e-banking service had security concerns. Therefore there

should be initiatives on the part of the banks to remove the security risk and

improve the services.

RECOMMENDATIONS OF THE STUDY

This chapter deals with the recommendations which are generated

through the findings and also the conclusion drawn out of the study.

These recommendations will help the organizations to enhance the

productivity of the organization.

RECOMMENDATIONS OF THE STUDY

 To promote E Banking services and to have a bank wide usage and

adoption it is necessary that banks educate the non using customers

about the benefits and advantages of E Banking.

 Banks should look forward to have some tie ups with other financial

institutions to increase the service base.

 The major concerns of E Banking are security threats and privacy

issues which will have to be dealt with to ensure long term survival.

More technologically advanced security features should be deployed

by the banks.
  Mobile banking is also getting popular in the segment of internet

banking SBI is providing mobile banking with limited features. To

keep pace with the private sector banks The Public sector banks need

to provide more mobile features.

 The service charges of E Banking services should be nominal to

attract more customers and increase the customer base.

 The employees of public sector banks should be trained about the E

Banking services so that they can further encourage and educate the

customers to use E Banking services.

SUMMING UP:

The chapter discusses certain suggestions, the implementation of which will

lead to greater adaption of e-banking services by the customers of SBI and

ICICI bank. These suggestions will help the organizations to attain greater

commitment with the customers and also help in increasing the customer

base of the organization which will result in more productivity of the banks.