ACOMPREHENSIVE PROJECT

ON 

A STUDY ON CUSTOMER PERCEPTIONS ABOUT E-BANKING SERVICES BY

BOB & HDFC BANK IN AHMEDABAD

Submitted By: Enrolment No: Dabgar Dharmesh 137960592017Vegda Jayprakash 137960592034

• HISTORY OF BOB BANK:

Prior to independence from the British Rule, the ancient India was ruled by princely states, scattered over the width and breadth of the large Indian nation.

The Maharaja of Baroda, a princely state of British India, by name Sir Sayyajirao Gaekwad III, had the same vision in establishing a bank for servicing the public at large and the citizens of Baroda State, a Guajarati population in particular.

On 20th July 1908,Bank of Baroda was established under the rules of Companies Act 1897, in a small building at Baroda, by the Maharaja with a paid up capital of Rs.10 lakhs.

INTRODUCTION OF BANK

The guidelines set by the Maharaja for the bank was to serve the people of the State of Baroda as well as the neighboring regions with money lending, saving, transmission and encouraging the development of arts, science, commerce and trade for the people.

The success story of the Bank of Baroda is studded with many a leaps and strides it made in the International presence, apart from establishing branches all over the Indian nation, by acquisition of already popular banking entities, as also commencing new commercial banking establishments, in the unique Guajarati style. During the years of1908 to 2007 (and the century year being round the corner) Bank of Baroda’s growth owes to the excellence in rendering financial products and services to the national and international population. Countries beginning from America to Zambia, in the alphabetical order have been enjoying the services of Bank of Baroda as of today.

• HISTORY OF HDFC BANK: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 the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994.

The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.

HDFC bank’s business philosophy is based on our four core values - Customer Focus, Operational Excellence, Product Leadership and People. They believe that the ultimate identity and success of their bank will reside in the exceptional quality of people and their extraordinary efforts.

The objective of the HDFC Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-step window for all his/her requirements.

INTRODUCTION OF THE STUDY Information Technology has become a necessary tool in today’s

organizations. Banks today operate in a highly globalized, liberalized, privatized and a competitive environment. In order to survive in this environment banks have to use IT.

The banking industry can kill two birds with one stone that is with help of technology. Tremendous progress took place in the field of technology which has reduced the world to a global village and it has brought remarkable changes in the banking industry. Branch banking in the brick and mortar mode has been transformed into click and order channel mode.

E-banking is the term that signifies and encompasses the entire sphere of technology initiatives that have taken place in the banking industry.

E-banking is a generic term making use of electronic channels through telephone, mobile phones, internet etc. for delivery of banking services and products. The concept and scope of e-banking is still in the transitional stage. E-banking has broken the barriers of branch banking.

BACKGROUND OF THE STUDYWhat Is E-Banking?E-banking is defined as the automated delivery of new and traditional banking

products and services directly to customers through electronic, interactive communication channels.

E-banking includes the systems that enable financial institution customers, individuals or businesses, to access accounts, transact business, or obtain information on financial products and services through a public or private network, including the Internet.

Customers access e-banking services using an intelligent electronic device, such as a personal computer (PC), personal digital assistant (PDA), automated teller machine (ATM), kiosk, or Touch Tone telephone.

Traditional banks offer many services to their customers, including accepting customer money deposits, providing various banking services to customers, and making loans to individuals and companies.

• E-Banking in India:

In India e-banking is of fairly recent origin. The traditional model for banking has been through branch banking. Only in the early 1990s there has been start of non-branch banking services.

The credit of launching internet banking in India goes to ICICI Bank followed with internet banking services in 1999.

Several initiatives have been taken by the Government of India as well as the Reserve Bank to facilitate the development of e-banking in India.

The Government of India enacted the IT Act, 2000 with effect from October 17, 2000 which provided legal recognition to electronic transactions and other means of electronic commerce.

• Need For E-Banking:

One has to approach the branch in person, to withdraw cash or deposit a cheque or request a statement of accounts.

In true Internet banking, any inquiry or transaction is processed online without any reference to the branch (anywhere banking) at any time. Providing Internet banking’s increasingly becoming a "need to have" than a "nice to have" service.

The net banking, thus, now is more of a norm rather than an exception in many developed countries due to the fact that it is the cheapest way of providing banking services.

• Diagram Of E-Banking System:

OBJECTIVES OF THE STUDYTo know customer attitude towards E- Banking services in Ahmedabad.

To find out the level of expectation of the customers and the level of perception of the customers from the services offered by the banks.

To investigate whether the banks provides the services as per the expectation of the customers.

HYPOTHESISEASE OF USE:

Ho: Ease of use does not influence the use of E Banking services.

H1: Ease of use does influence the use of E Banking services.

DIRECT ACCESS:

Ho: Direct Access does not influence the use of E Banking services.

H1: Direct Access does influence the use of E Banking services.

RESEARCH METHODOLOGYResearch Design:

I. Our research is Descriptive in nature as the banking industry is well-developed in India and lot of research has already been done in this area.

II. In the research, there is a comparison between the HDFC Bank and the Bank of Baroda, which provide better e-banking services to their customer.

Sources of Data:

1. Primary Data:

It is collected through structured questionnaire by conducting survey.

2. Secondary Data:

Internet , journals, books, magazines.

Data Collection Method:• The different services provide by the banks and customers expectation

and perceived have been find out on the basis of data collected from the customers.

Population:

 • Size: 4004583 (Population of Ahmedabad)

 • Sample size 150

DATA ANALYSIS & INTERPRETATION

• Age:

Below 20 21-30 31-40 41-50 Above 500

5

10

15

20

25

30

35

40

34

40

32

27

17

• Do you think that E-banking services are necessary in present scenario?

YES NO0

20

40

60

80

100

120

140

135

15

• While Opening Up the Account, Were You Aware Of E-banking Services Provided By Your Bank?

Yes

No

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Yes; 109

No; 41

• From which bank you are availing these services.

BOB HDFC BOTH Other0

10

20

30

40

50

60

54

36

47

13

• What do you prefer while choosing E-Banking services.

Good Service; 63; 42%

Cost Charges; 30; 20%

People References; 40; 27%

Others; 17; 11%

Good Service

Cost Charges

People References

Others

• Which Of The Following E-Banking Services Is You Aware Of?

Internet Banking mobile Banking Phone Banking One Line Banking Debit Card Others0

20

40

60

80

100

120

49

97

67

12

102

21

• To What Extent Is You Satisfied with Your Banks’ E-banking Services?

37%

21%13%

10%

19%

Highly satisfied (1)

satisfied (2)

Neutral (3)

Dissatisfied (4)

Highly dissatisfied (5)

• Respondents from BOB and HDFC

BOB HDFC0

10

20

30

40

50

60

54

36

• BOB

Highly satisfied (1) satisfied (2) Neutral (3) Dissatisfied (4) Highly dissatisfied (5)0

5

10

15

20

25

30

29

11

58

3

• HDFC

Highly satisfied (1) satisfied (2) Neutral (3) Dissatisfied (4)4 Highly dissatisfied (5)0

2

4

6

8

10

12

14

16

16

11

5

2 2

• Which Of The Following Benefits Accrue To You, While Using E-Banking Services?

Time Saving Inexpensive Easy Processing Easy Fund Transfer0

10

20

30

40

50

60

7064

39

29

18

• BOB

Time Saving45%

Inexpensive29%

Easy Processing18%

Easy Fund Transfer9%

• HDFC

Time Saving56%

Inexpensive22%

Easy Processing14%

Easy Fund Transfer8%

• Which Type Of Problem Are You facing While Using E-Banking Services?

Mor

e tim

e ta

king

in fu

nd tr

ansf

er

Slow s

peed

in w

orkin

g

Critica

l Pro

cess

Not e

asy

for n

on e

duca

ted

pers

on

Other

s0

5

10

15

20

25

2

7

17

24

5

• You Have an Option to Switch Over your Bank for Using the E-Banking Service. So, Do You Switch Your Bank?

BOB HDFC0

2

4

6

8

10

12

14

16

18

20

14

20

• Do you think that banks provide all the types of facilities as per your needs?

Yes

No

0

10

20

30

40

50

60

70

80

90

100 93

57

FINDINGS• From our study we find out that 114 male and 36 female are using E-

banking services of both the banks. The male are having more knowledge about the transactions and having more knowledge about the services provided by the banks. Only the working ladies having knowledge about the services or the female having the knowledge but not of the all the service s which are provided by the banks. So that’s why we considered only those persons who are having knowledge about all services of E-banking which is provided by the banks.

• Most of the respondents who lies under the age of 21-30 are using E-banking services a s near about 40 respondents are using these services because under the age of these respondents they are having more knowledge about the services of e-banking.

• Most of respondents are business man are using E-banking services as near about 48 respondents are using E-banking services. Because the benefits which are having while using these services are more benefited by the business man people so they are availing these services more than the other respondents.

• The overall percentage of businessmen having complete knowledge a bout e- banking services provided by the bank while opening an account in it is 73% and the percentage of people have no awareness of e-banking services provided by the bank is 27%. It can reasonably, be concluded that nearly 73% of the population is having awareness about e-banking services.

LIMITATIONS OF THE STUDY• Respondents may give biased answers for the required

data. Some of the respondents did not like to respond.

• The study is for the BOB & HDFC Bank confined to a particular location and a very small sample of respondents. Hence the findings cannot be treated as representative of the entire banking industry.

• Respondents tried to escape some statements by simply answering “satisfied or not satisfied” to most of the statements. This was one of the most important limitations faced, as it was difficult to analyze and come at a right conclusion.

CONCLUSION• This study attempted to identify key quality attributes of internet banking

services by analyzing internet banking customers & their comments on banking experience.

• The findings of this study show that despite of many advantages of online banking. People still consider it as an alternative for analyzing their bank records. Although every bank today provides the facility of online banking but most of people use it only once a month.

• Banks are providing free internet banking services also so that the customers can be attracted. By asking the bank employs we came to know that maximum numbers of internet bank account holders are youth and business man.

• E-Banking is an innovative tool that is fast becoming a necessity. It is a successful strategic we upon for banks to remain profitable in a volatile and competitive marketplace of today.

RECOMMENDATION• We can see the time is changing and we the passage of time

people are accepting technology there is still a lot of perceptual blocking which hampers the growth it’s the normal tendency of a human not to have changes work on the old track, that’s also one of the reason for the slow acceptance of internet banking accounts.

• Internet banking facility must be made available in all branches of these two Banks.

• Provide a platform from where the customers can access different accounts at single time without extra charge.