MEDI-CAPS UNIVERSITY

INDORE

Project Report

ON

“A STUDY ON CUSTOMER SATISFACTION TOWARDS E-BANKING

SERVICES (WITH SPECIAL REFERENCE TO ICICI AND HDFC
BANK)

Submitted as partial Fulfillment for

Degree of Master of Business Administration

To

Medi- Caps University, Indore

May, 2021

GUIDED BY - SUBMITTED BY-

Asst prof. Vinita Nair Nisha Patel

MS19MS501185
 DECLARATION BY THE STUDENT

This is to certify that the dissertation entitled “A customer satisfaction towards E- banking
services (With special reference to icici and hdfc bank “is a bonafide work done by me Nisha
Patel (MS19MS501185), Under the supervision of prof Vinita Nair in partial fulfillment for
the degree of Master of Business Administration by Medi- Caps University, Indore.

Place: Indore Nisha Patel

Date: MS19MS501185
 CERTIFICATE OF THE SUPERVISOR

This to certify that MS Nisha Patel has executed the dissertation entitled “A study of
customer satisfaction towards E-banking services (With special reference to icici and hdfc
bank) under my supervision and the report submitted therewith is the result of work done
under my supervision.

Place: Indore Asst. prof. Vinita Nair

Date:

Place: Indore

Date: External viva – voice Examiner

 ACKNOWLEDGEMENT

I am grateful to my guide Prof. Vinita Nair of Medi- Caps University, Department of

Management, Indore for her precious guidance throughout my dissertation work. She has
devoted her valuable time and motivated me at every step towards completing this
dissertation. The study would not have been possible without her generous guidance.

I am deeply indebted to Dr Harish Bapat, Dean Management, Medi- Caps University, Indore
for his continuous support and blessings. His support has rendered me great help towards this
dissertation work.

I also express my sincere gratitude to my family members, friends and respondents for
extended support throughout the dissertation work.

Nisha Patel

MS19MS501185
 Table of Contents
CHAPTERS CONTENTS PAGE No.

Declaration by the Candidate/Student ii

Certificate of the Supervisor/Guide iii

Acknowledgement iv

Table of Contents v
Introduction
1.1 Introduction to the industry 6-28
Chapter - 1
1.2 Introduction to the organization 29-49
Chapter - 2 Review of literature 50-57

Research Methodology
3.1 Objectives of Study
3.2 Hypotheses of the Study
3.3 Sample Characteristics (Sample Size, Unit, Frame etc.…) 58-61
Chapter - 3
3.4 Procedures (Data Collection Procedure-Tools & Techniques)

62-78
Chapter - 4 Data Analysis and Interpretation
Conclusion
5.1 Conclusion (Recommendation and Suggestions) 79-84
Chapter - 5 5.2 Limitations of the study
5.3 Scope for the future Study

85-86
References (APA Style)
87-90
Appendix (Questionnaire)

CHAPTER-1
 INTRODUCTION TO THE INDUSTRY

The first banks were probably the religious temples of the ancient world, and were probably
established in the third millennium B.C. Banks probably predated the invention of money.
Deposits initially consisted of grain and later other goods including cattle, agricultural
implements, and eventually precious metals such as gold, in the form of easy-to-carry
compressed plates. Temples and palaces were the safest places to store gold as they were
constantly attended and well built. As sacred places, temples presented an extra deterrent to
would-be thieves. There are extant records of loans from the 18th century BC in Babylon that
were made by temple priests/monks to merchants.

By the time of Hammurabi's Code, banking was well enough developed to justify the
promulgation of laws governing banking operations. Ancient Greece holds further evidence
of banking. Greek temples, as well as private and civic entities, conducted financial
transactions such as loans, deposits, currency exchange, and validation of coinage. There is
evidence too of credit, whereby in return for a payment from a client, a moneylender in one
Greek port would write a credit note for the client who could "cash" the note in another city,
saving the client the danger of carting coinage with him on his journey. Pythius, who
operated as a merchant banker throughout Asia Minor at the beginning of the 5th century
B.C., is the first individual banker of whom we have records. Many of the early bankers in
Greek city-states were “metics” or foreign residents. Around 371 B.C., Passion, a slave,
became the wealthiest and most famous Greek banker, gaining his freedom and Athenian
citizenship in the process. The fourth century B.C. saw increased use of credit-based banking
in the Mediterranean world. In Egypt, from early times, grain had been used as a form of
money in addition to precious metals, and state granaries functioned as banks. When Egypt
fell under the rule of a Greek dynasty, the Ptolemies (332-30 B.C.), the numerous scattered
government granaries were transformed into a network of grain banks, centralized in
Alexandria where the main accounts from all the state granary banks were recorded. This
banking network functioned as a trade credit system in which payments were effected by
transfer from one account to another without money passing. In the late third century B.C.,
the barren Aegean island of Delos, known for its magnificent harbor and famous temple of
Apollo, became a prominent banking center. As in Egypt, real credit receipts replaced cash
transactions and payments were made based on simple instructions with accounts kept for
each client. With the defeat of its main rivals, Carthage and Corinth, by the Romans, the
importance of Delos increased. Consequently, it was natural that the bank of Delos should
become the model most closely imitated by the banks of Rome.

Christ drives the Usurers out of the Temple, a woodcut by Lucas Cranach the Elder in
Passionary of Christ and Antichrist.

Banking during Roman times was not as we understand banking in modern times. During the
Participate, the majority of banking activities were conducted by private individuals, and not
by large banking corporations that exist today. Money lending not only allowed for those
people who needed money to have access to it, but that through direct transference between
bankers, the actual usage of currency was not needed because it could be done purely through
financial intermediation. Large investments were conducted and financed by the federators
(trans. financier), whilst those that worked professionally in the money business and were
recognized as such were known by various names, such as argentarii (trans. banker),
nummularii (trans. money changer), and coactores (trans. debt collector), but the vast
majority of money-lenders in the Empire were private individuals, since anybody that had
any additional capital and wished to lend it out, could easily do so.

The rate of interest on loans varied in the range of four percent to 12 percent, but when the
interest rate was higher, it typically was not 15 or 16 percent, but 24 or 48 percent. The
apparent absence of intermediary rates suggests that the Romans may have had difficulty
calculating rates. They quoted them on a monthly basis, as in the loan described here, and the
most common rates were multiples of twelve. Monthly rates tended to range from simple
fractions to three or four percent, perhaps because lenders used Roman numerals.

Columella advised people setting up vineyards to include the interest on borrowed money
among their costs as a matter of course and clearly understood that investors need to think
about the cost of invested funds, whether borrowed or not. His advice shows financial
sophistication in addition to suggesting the presence of loans for productive purposes.

Money lending during this period was largely a matter of private loans being advanced to
people short of cash, whether persistently in debt or temporarily until the next harvest. For
the most part exceedingly rich men who were prepared to take on a high risk if the profit
looked good undertook it; interest rates were fixed privately and were almost entirely
unrestricted by law. Thus, investment was always regarded as a matter of seeking personal
profit, often on an exorbitant scale. Banking was of the small back-street variety, run by the
urban lower-middle class of petty shopkeepers. By the 3rd century, acute currency problems
in the Empire drove them into a state of decline.

Western banking history

The Church officially prohibited usury, which reafirmed the view that it was a sin to charge
interest on a money loan. The development of double entry bookkeeping would provide a
powerful argument in favor of the legitimacy and integrity of a firm and its profits. While
archival evidence suggests the emergence of bookkeeping practices during the course of the
13th century, the earliest extant evidence of full double-entry bookkeeping is the Farolfi
ledger of 1299-1300. Giovanno Farolfi & Company were a firm of Florentine merchants
whose head office was in Nîmes whose ledger shows that they also acted as moneylender to
Archbishop of Arles, their most important customer. His patronage must also have shielded
the Florentines from any trouble over the Church's official ban on usury, which in any case
was not seriously enforced, provided the rate of interest was not extortionate; the Archbishop
himself borrowed from the Farolfi at 15 per cent per annum.

Banking in the modern sense of the word can be traced to medieval and early
Renaissance Italy, to the rich cities in the north like Florence, Venice, and Genoa. The Bardi
and Peruzzi families were dominated banking in 14th century Florence, establishing branches
in many other parts of Europe. Perhaps the most famous Italian bank was the Medici bank,
set up by Giovanni Medici in 1397. Modern Western economic and financial history is
usually traced back to the coffee houses of London. The London Royal Exchange was
established in 1565. At that, time moneychangers were already called bankers, though the
term "bank" usually referred to their offices, and did not carry the meaning it does today.
There was also a hierarchical order among professionals; at the top were the bankers who did
business with heads of state, next were the city exchanges, and at the bottom were the pawn
shops or "Lombard’s. Some European cities today have a Lombard street where the
pawnshop was located.

Banking offices were usually located near centers of trade, and in the late 17th century, the
largest centers for commerce were the ports of Amsterdam, London, and Hamburg.
Individuals could participate in the lucrative East India trade by purchasing bills of credit
from these banks, but the price they received for commodities was dependent on the ships
returning (which often didn't happen on time) and on the cargo they carried (which often
wasn't according to plan). The commodities market was very volatile for this reason, and
because of the many wars that led to cargo seizures and loss of ships.

Capitalism

Around the time of Adam Smith (1776) there was a massive growth in the banking industry.
Banks played a key role in moving from gold and silver-based coinage to paper money,
redeemable against the bank's holdings.

Within the new system of ownership and investment, the state's role as an economic factor
changed substantially.

Global banking

In the 1970s, a number of smaller crashes tied to the policies put in place following the
depression, resulted in deregulation and privatization of government-owned enterprises in the
1980s, indicating that governments of industrial countries around the world found private-
sector solutions to problems of economic growth and development preferable to state-
operated, semi-socialist programs. This spurred a trend that was already prevalent in the
business sector, large companies becoming global and dealing with customers, suppliers,
manufacturing, and information centers all over the world.

Global banking and capital market services proliferated during the 1980s and 1990s as a
result of a great increase in demand from companies, governments, and financial institutions,
but also because financial market conditions were buoyant and, on the whole, bullish. Interest
rates in the United States declined from about 15% for two-year U.S. Treasury notes to about
5% during the 20-year period, and financial assets grew then at a rate approximately twice the
rate of the world economy. Such growth rate would have been lower, in the last twenty years,
were it not for the profound effects of the internationalization of financial markets especially
U.S. Foreign investments, particularly from Japan, who not only provided the funds to
corporations in the U.S., but also helped finance the federal government; thus, transforming
the U.S. stock market by far into the largest in the world.
Nevertheless, in recent years, the dominance of U.S. financial markets has been disappearing
and there has been an increasing interest in foreign stocks. The extraordinary growth of
foreign financial markets results from both large increases in the pool of savings in foreign
countries, such as Japan, and, especially, the deregulation of foreign financial markets, which
has enabled them to expand their activities. Thus, American corporations and banks have
started seeking investment opportunities abroad, prompting the development in the U.S. of
mutual funds specializing in trading in foreign stock markets.

Such growing internationalization and opportunity in financial services has entirely changed
the competitive landscape, as now many banks have demonstrated a preference for the
“universal banking” model prevalent in Europe. Universal banks are free to engage in all
forms of financial services, make investments in client companies, and function as much as
possible as a “one-stop” supplier of both retail and wholesale financial services.

Many such possible alignments could be accomplished only by large acquisitions, and
there were many of them. By the end of 2000, a year in which a record level of financial
services transactions with a market value of $10.5 trillion occurred, the top ten banks
commanded a market share of more than 80% and the top 5, 55%. Of the top ten banks
ranked by market share, seven were large universal-type banks (three American and four
European), and the remaining three were large U.S. investment banks who between them
accounted for a 33% market share.

This growth and opportunity also led to an unexpected outcome: entrance into the
market of other financial intermediaries: nonbanks. Large corporate players were beginning
to find their way into the financial service community, offering competition to established
banks. The main services offered included insurances, pension, mutual, money market and
hedge funds, loans and credits and securities. Indeed, by the end of 2001 the market
capitalization of the world’s 15 largest financial services providers included four nonbanks.

In recent years, the process of financial innovation has advanced enormously increasing the
importance and profitability of nonbank finance. Such profitability priory restricted to the
nonbanking industry, has prompted the Office of the Comptroller of the Currency (OCC) to
encourage banks to explore other financial instruments, diversifying banks' business as well
as improving banking economic health. Hence, as the distinct financial instruments are being
explored and adopted by the banking and nonbanking industries, the distinction between
different financial institutions is gradually vanishing.

Major events in banking history

 Florentine banking — The Medicis and Pittis among others.

 Knights Templar- earliest Euro wide /Mideast banking 1100-1300.
 Banknotes — Introduction of paper money.
 1602 - First joint-stock company, the Dutch East India Company founded.
 1720 - The South Sea Bubble and John Law's Mississippi Scheme, which caused a
European financial crisis and forced many bankers out of business.
 1781 - The Bank of North America was found by the Continental Congress.
 1800 - Rothschild family founds Euro wide banking.
 1930-33 in the wake of the Wall Street Crash of 1929, 9,000 banks close, wiping out a
third of the money supply in the United States.
 1986 - The "Big Bang" (deregulation of London financial markets) served as a
catalyst to reaffirm London's position as a global centre of world banking.
 2008 - Washington Mutual collapses. It was the largest bank failure in history.

Oldest private banks

 Monte dei Paschi di Siena 1472–present, the oldest surviving bank in the world.
Founded in 1472 by the Magistrate of the city-state of Siena, Italy.
 Rolo Banca founded 1473 - now part of UniCredit Group of Italy
 C. Hoare & Co founded 1672
 Barclays, which was founded by John Freame and Thomas Gould in 1690 [19] and
renamed to Barclays by Freame's son-in-law, James Barclay, in 1736
 Rothschild family 1700–present
 Wegelin & Co. Private Bankers 1741–present, the oldest Swiss bank, founded in 1741
in St. Gallen, third largest private bank in Switzerland
 Hope & Co., founded in 1762

Oldest national banks

  Bank of Sweden — The rise of the national banks, began operations in 1668
 Bank of England — The evolution of modern central banking policies, established in
1694
 Bank of America — The invention of centralized check and payment processing
technology
 Swiss banking
 United States Banking
 The Pennsylvania Land Bank, founded in 1723 and receiving the support of Benjamin
Franklin who wrote "Modest Enquiry into the Nature and Necessity of a Paper
Currency" in 1729.
 Ziraat Bank (Turkey) — Founded in 1863 to finance farmers by providing agricultural
loans.
 Bulgarian National Bank — the central bank of the Republic of Bulgaria with its
headquarters in Sofia, has been established in 25 January 1879 and is one of the oldest
central banks in the world. The BNB is an independent institution responsible for
issuing all banknotes and coins in the country, overseeing and regulating the banking
sector and keeping the government's currency reserves.
 Imperial Bank of Persia (Iran) Founded in 1888 and was merged in Tejarat Bank in
1979 — History of banking in the Middle-East

History of Banking in India

For the past three decades, India's banking system has several outstanding
achievements to its credit. The most striking is its extensive reach. It is no longer confined to
only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached
even to the remote corners of the country. This is one of the main reasons of India's growth
process.

The government's regular policy for Indian bank since 1969 has paid rich dividends with the
nationalization of 14 major private banks of India.

Not long ago, an account holder had to wait for hours at the bank counters for getting
a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the
most efficient bank transferred money from one branch to other in two days. Now it is simple
as instant messaging or dial a pizza. Money have become the order of the day.

The first bank in India, though conservative, was established in 1786. From 1786 until today,
the journey of Indian Banking System can be segregated into three distinct phases. They are
as mentioned below:

 Early phase from 1786 to 1969 of Indian Banks

 Nationalization of Indian Banks and up to 1991 prior to Indian banking sector
Reforms.
 New phase of Indian Banking System with the advent of Indian Financial & Banking
Sector Reforms after 1991.

To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase
III.

Phase I

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and
Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay
(1840), and Bank of Madras (1843) as independent units and called it Presidency Banks.
These three banks were amalgamated in 1920 and Imperial Bank of India was established
which started as private shareholders banks, mostly European’s shareholders.

In 1865, Allahabad Bank was established and first time exclusively by Indians, Punjab
National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913,
Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank
of Mysore were set up. Reserve Bank of India came in 1935.

During the first phase, the growth was very slow and banks also experienced periodic
failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To
streamline the functioning and activities of commercial banks, the Government of India came
up with The Banking Companies Act, 1949 which was later changed to Banking Regulation
Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was
vested with extensive powers for the supervision of banking in India as the Central Banking
Authority.

During those, day’s public has lesser confidence in the banks. As an aftermath, deposit
mobilization was slow. Abreast of it the savings bank facility provided by the Postal
department was comparatively safer. Moreover, funds were largely given to traders.

Phase II

Government took major steps in this Indian Banking Sector Reform after independence. In
1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale
especially in rural and semi-urban areas. It formed State Bank of India to act as the principal
agent of RBI and to handle banking transactions of the Union and State Governments all over
the country.

Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19 July
1969, major process of nationalization was carried out. It was the effort of the then Prime
Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country were
nationalized.

Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with
seven more banks. This step brought 80% of the banking segment in India under Government
ownership.

The following are the steps taken by the Government of India to Regulate Banking
Institutions in the Country:

 1949: Enactment of Banking Regulation Act.

 1955: Nationalization of State Bank of India.
 1959: Nationalization of SBI subsidiaries.
 1961: Insurance cover extended to deposits.
 1969: Nationalization of 14 major banks.
 1971: Creation of credit guarantee corporation.
 1975: Creation of regional rural banks.
 1980: Nationalization of seven banks with deposits over 200 crores.

After the nationalization of banks, the branches of the public sector bank India rose to
approximately 800% in deposits and advances took a huge jump by 11,000%. Banking in the
sunshine of Government ownership gave the public implicit faith and immense confidence
about the sustainability of these institutions.

Phase III

This phase has introduced many more products and facilities in the banking sector in its
reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up
by his name, which worked for the liberalization of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being put to
give a satisfactory service to customers. Phone banking and net banking is introduced. The
entire system became more convenient and swifter. Time is given more importance than
money.

The financial system of India has shown a great deal of resilience. It is sheltered from any
crisis triggered by any external macroeconomics shock as other East Asian Countries
suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the
capital account is not yet convertible, and banks and their customers have limited foreign
exchange exposure.

Nationalization of Banks in India

The nationalization of banks in India took place in 1969 by Mrs. Indira Gandhi the then
prime minister. It nationalized 14 banks then. These banks were mostly owned by
businesspersons and even managed by them.

 Central Bank of India

 Bank of Maharashtra
 Dena Bank
 Punjab National Bank
 Syndicate Bank
 Canara Bank
 Indian Bank
 Indian Overseas Bank
  Bank of Baroda
 Union Bank
 Allahabad Bank
 United Bank of India
 UCO Bank
 Bank of India

Before the steps of nationalization of Indian banks, only State Bank of India (SBI)
was nationalized. It took place in July 1955 under the SBI Act of 1955. Nationalization of
Seven State Banks of India (formed subsidiary) took place on 19 July 1960.

The State Bank of India is India's largest commercial bank and is ranked one of the
top five banks worldwide. It serves 90 million customers through a network of 9,000
branches and it offers -- either directly or through subsidiaries -- a wide range of banking
services.

The second phase of nationalization of Indian banks took place in the year 1980. Seven more
banks were nationalized with deposits over 200 crores. Until this year, approximately 80% of
the banking segment in India was under Government ownership.

After the nationalization of banks in India, the branches of the public sector banks
rose to approximately 800% in deposits and advances took a huge jump by 11,000%.

 1955: Nationalization of State Bank of India.

 1959: Nationalization of SBI subsidiaries.
 1969: Nationalization of 14 major banks.
 1980: Nationalization of seven banks with deposits over 200 crores.

Scheduled Commercial Banks in India

The commercial banking structure in India consists of:

 Scheduled Commercial Banks in India

 Unscheduled Banks in India
Scheduled Banks in India constitute those banks, which have been included in the Second
Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only those banks in
this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act.
As on 30th June, 1999, there were 300 scheduled banks in India having a total network of
64,918 branches. The scheduled commercial banks in India comprise of State bank of India
and its associates (8), nationalized banks (19), foreign banks (45), private sector banks (32),
co-operative banks and regional rural banks.
"Scheduled banks in India" means the State Bank of India constituted under the State Bank of
India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India
(Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under
section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5
of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank included in the Second
Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), but does not include a co-
operative bank".
"Non-scheduled bank in India" means a banking company as defined in clause (c) of
section 5 of the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank".

The following are the Scheduled Banks in India (Public Sector):

 State Bank of India

 State Bank of Bikaner and Jaipur
 State Bank of Hyderabad
 State Bank of Indore
 State Bank of Mysore
 State Bank of Saurashtra
 State Bank of Travancore
 Andhra Bank
 Allahabad Bank
 Bank of Baroda
 Bank of India
 Bank of Maharashtra
  Canara Bank
 Central Bank of India
 Corporation Bank
 Dena Bank
 Indian Overseas Bank
 Indian Bank
 Oriental Bank of Commerce
 Punjab National Bank
 Punjab and Sind Bank
 Syndicate Bank
 Union Bank of India
 United Bank of India
 UCO Bank
 Vijaya Bank

The following are the Scheduled Banks in India (Private Sector):

 ING Vysya Bank Ltd

 Axis Bank Ltd
 IndusInd Bank Ltd
 ICICI Bank Ltd
 South Indian Bank
 HDFC Bank Ltd
 Centurion Bank Ltd
 Bank of Punjab Ltd
 IDBI Bank Ltd
 Jammu & Kashmir Bank Ltd.

The following are the Scheduled Foreign Banks in India:

  American Express Bank Ltd.
 ANZ Grid lays Bank Plc.
 Bank of America NT & SA
 Bank of Tokyo Ltd.
 Banquc Nationale de Paris
 Barclays Bank Plc
 Citi Bank N.C.
 Deutsche Bank A.G.
 Hongkong and Shanghai Banking Corporation
 Standard Chartered Bank.
 The Chase Manhattan Bank Ltd.
 Dresdner Bank AG.

INTRODUCTION OF INTERNET BANKING

Internet banking-Internet banking is changing the banking industry and is having the major
effects on banking relationships. Banking is now no longer confined to the branches were 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 is 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.

WHAT 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. While the risks and controls are similar for the various e-banking access channels,
this booklet focuses specifically on Internet-based services due to the Internet’s widely
accessible public network. Accordingly, this booklet begins with a discussion of the two
primary types of Internet websites: informational and transactional
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. Compared with traditional channels of offering banking services
through physical branches, e-banking uses the Internet to deliver traditional banking services
to their customers, such as opening accounts, transferring funds, and electronic bill payment.

E-banking can be offered in two main ways. First, an existing bank with physical offices can
also establish an online site and offer e-banking services to its customers in addition to the
regular channel. For example, Citibank is a leader in e-banking, offering walk-in, face-to-face
banking at its branches throughout many parts of the world as well as e-banking services
through the World Wide Web. Citibank customers can access their bank accounts through the
Internet, and in addition to the core e-banking services such as account balance inquiry, funds
transfer, and electronic bill payment, Citibank also provides premium services including
financial calculators, online stock quotes, brokerage services, and insurance.

E-banking from banks like Citibank complements those banks' physical presence. Generally,
e-banking is provided without extra cost to customers. Customers are attracted by the
convenience of e-banking through the Internet, and in turn, banks can operate more
efficiently when customers perform transactions by themselves rather than going to a branch
and dealing with a branch representative.

E-banking services are delivered to customers through the Internet and the web using
Hypertext Markup Language (HTML). In order to use e-banking services, customers need
Internet access and web browser software. Multimedia information in HTML format from
online banks can be displayed in web browsers. The heart of the e-banking application is the
computer system, which includes web servers, database management systems, and web
application programs that can generate dynamic HTML pages.

One of the main concerns of e-banking is security. Without great confidence in security,
customers are unwilling to use a public network, such as the Internet, to view their financial
information online and conduct financial transactions. Some of the security threats include
invasion of individuals' privacy and theft of confidential information. Banks with e-banking
service offer several methods to ensure a high level of security: (1) identification and
authentication, (2) encryption, and (3) firewalls. First, the identification of an online bank
takes the form of a known Uniform Resource Locator (URL) or Internet address, while a
customer is generally identified by his or her login ID and password to ensure only
authenticated customers can access their accounts. Second, messages between customers and
online banks are all encrypted so that a hacker cannot view the message even if the message
is intercepted over the Internet. The particular encryption standard adopted by most browsers
is called Secure Socket Layer (SSL). It is built in the web browser program and users do not
have to take any extra steps to set up the program. Third, banks have built firewalls, which
are software or hardware barriers between the corporate network and the external Internet, to
protect the servers and bank databases from outside intruders. For example, Wells Fargo
Bank connected to the Internet only after it had installed a firewall and made sure the firewall
was sufficiently impenetrable.

HISTORY OF E- BANKING
 On October 1, 2000, the electronic signatures bill took effect, recognizing documents
signed online as legal. Some banks plan to begin usin electronic checks as soon as they can
work out various security measures.

The range of e-banking services is likely to increase in the future. Some banks plan to
introduce electronic money and electronic checks. Electronic money can be stored in
computers or smart cards and consumers can use the electronic money to purchase small
value items over the Internet. Electronic checks will look similar to paper checks, but they
can be sent from buyers to sellers over the Internet, electronically endorsed by the seller, and
forwarded to the seller's bank for electronic collection from the buyer's bank. Further, banks
seek to offer their customers more products and services such as insurance, mortgage, etc.

EVOLUTION OF E-BANKING
The story of technology in banking started with the use of punched card machines like
Accounting Machines or Ledger Posting Machines. The use of technology, at that time, was
limited to keeping books of the bank. It further developed with the birth of online real time
system and vast improvement in telecommunications during late 1970’s and 1980’s.it
resulted in a revolution in the field of banking with “convenience banking” as a buzzword.
Through Convenience banking, the bank is carried to the doorstep of the customer.
The 1990’s saw the birth of distributed computing technologies and Relational Data Base
Management System. The banking industry was simply waiting for these technologies. Now
with distribution technologies, one could configure dedicated machines called front-end
machines for customer service and risk control while communication in the batch mode
without hampering the response time on the frontend machine. Intense competition has
forced banks to rethink the way they operated their business. They had to reinvent and
improve their products and services to make them more beneficial and cost effective.
Technology in the form of E-banking has made it
possible to find alternate banking practices at lower costs. More and more people are using
electronic banking products and services because large section of the banks future customer
base will be made up of computer literate customer, the banks must be able to offer these
customer products and services that allow them to do their banking by electronic means. If
they fail to do this will, simply, not survive. New products and services are emerging that are
set to change the way we look at money and the monetary system.
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. Banks have
traditionally been in the refront of harnessing technology to improve their products, services
and efficiency. They have, over a long time, been using

Bank Information technology Customer

electronic and telecommunication networks for delivering a wide range of value-added
products and services. The delivery channels include direct dial – up connections, private
networks, public networks etc. and the devices include telephone, Personal Computers
including the Automated Teller Machines, etc. With the popularity of PCs, easy access to
Internet and World Wide Web (WWW), Internet is increasingly used by banks as a channel
for receiving instructions and delivering their products and services to their customers. This
form of banking is generally referred to as Internet Banking, although the range of products
and services offered by different banks vary widely both in their content and sophistication.

DIAGRAM OF E-BANKING SYSTEM

Types of E-Banking

The common assumption is that Internet banking is the only method of on-line banking.
However, this is not strictly the case, as several types of service are currently available:
  PC Banking - The forerunner to Internet banking has been around since the late
1980's and is still widely used today. Individual banks provide software which is
loaded on to an SME's office computer. The SME can then access their bank account
via a modem and telephone link to the bank. Access is not necessarily via the Internet.
 Internet Banking - Using a Web browser, a user can access their account, once the
bank's application server has validated the user's identity.
 Digital TV Banking- Using the standard digital reception equipment (set top box and
remote control), users can access their bank account. Abbey National and HSBC
services are available via Digital TV providers. One of its main selling points is that
no account details are transmitted via the World Wide Web;
 Text Phone Banking - HSBC have introduced this service to allow customers with
text phones to check their balance, pay bills and transfer money.

Internet banking can be split into two distinct groups:

 Traditional banks and building societies use the Internet as an add-on service with
which to give businesses access to their accounts.
 New Internet-only banks have no bricks and mortar presence on the High Street.
Therefore, they have lower overheads and can offer higher rates of interest and lower
charges.

FEATUERS OF E-BANKING

 E-Banking provide exceptional rates on Savings, CDs, and IRAs

 Checking with no monthly fee, free bill payment and rebates on ATM surcharges

 credit cards with low rates

 Easy online applications for all accounts, including personal loans and mortgages

 24-hour account access

 It provides Quality customer service with personal attention

 It provides the quick services to their customers.

 Enables transfer of funds from one place to another(banks).

 Exchange of statistical information amongst banks.

 Enables foreign exchange operations.

 Inter-bank applications like settlement of funds between banks.

 Provides facilities like Demat operation, ATM operation, online banking.

BENEFITS OF E-BANKING
For Banks:
Price- In the long run a bank can save on money by not paying for tellers or for managing
branches. Plus, it's cheaper to make transactions over the Internet. Customer Base- The
Internet allows banks to reach a whole new market- and a well off one too, because there are
no geographic boundaries with the Internet. The Internet also provides a level playing field
for small banks who want to add to their customer base. Efficiency- Banks can become more
efficient than they already are by providing Internet access for their customers. The Internet
provides the bank with an almost paper less system.
Customer Service and Satisfaction- Banking on the Internet not only allow the customer to
have a full range of services available to them but it also allows them some services not
offered at any of the branches. The person does not have to go to a branch where that service
may or may not be offer. A person can print of information, forms, and applications via the
Internet and be able to search for information efficiently instead of waiting in line and asking
a teller. With better and faster options, a bank will surely be able to create better customer
relations and satisfaction.
Image- A bank seems more state of the art to a customer if they offer Internet access. A
person may not want to use Internet banking but having the service available gives a person
the feeling that their bank is on the cutting image.

For Customers:
Bill Pay: Bill Pay is a service offered through Internet banking that allows the customer to set
up bill payments to just about anyone. Customer can select the person or company whom he
wants to make a payment and Bill Pay will withdraw the money from his account and send
the payee a paper check or an electronic payment
Other Important Facilities: E- banking gives customer the control over nearly every aspect of
managing his bank accounts. Besides the Customers can, Buy and Sell Securities, Check
Stock Market Information, Check Currency Rates, Check Balances, See which checks are
cleared, Transfer Money, View Transaction History and avoid going to an actual bank. The
best benefit is that Internet banking is free. At many banks the customer doesn't have to
maintain a required minimum balance. The second big benefit is better interest rates for the
customer.

Internet Banking

Internet banking, sometimes called online banking, 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 deposit. An
Internet banking customer accesses his or her accounts from a browser— software that runs
Internet banking programs resident on the bank’s World Wide Web server, not on the user’s
PC. Net Banker defines a “true Internet bank” as one that provides account balances and
some transactional capabilities to retail customers over the World Wide Web. Internet banks
are also known as virtual, cyber, net, interactive, or web banks. his is basically the banking
industry's attempt to jump on the "e-business" band wagon. E-banking is a term that attempts
to broadly describe today's alternate delivery channels. Different banks - and vendors - will
describe this differently.

Features of Internet banking

The features available from an on-line bank account are similar to those which are
available via 'phone banking or visiting the local branch. On-line banking features do
differ between the banks, but usually include:

 Transfer of funds between accounts;

 It brings efficiency in CRM (Customer relationship management)
 Make Payment of bills
 Introduces new & innovative products &services
 View balance and statements;
 Brings door to door services
  Create, view and maintain Standing Orders
 Have evolutionary trend at a global scenario.

ADVANTAGES OF E-BANKING: -
• Convenience - Unlike your corner bank, online banking sites never c lose; they’re available
24 hours a day, seven days a week, and they’re only a mouse click away. With pressures on
time and longer travelling periods, more and more people find it tiresome waiting in queues.
People want flexibility, and Internet banking offers just that.
• Ubiquity - If you’re out of state or even out of the country when a money problem arises,
you can log on instantly to your online bank and take care of business, 24\7.
• Transaction speed - Online bank sites generally execute and confirm transactions at or
quicker than ATM processing speeds.
• Efficiency- You can access and manage all of your bank accounts, including IRA’s, CDs,
even securities, from one secure site.
• Effectiveness- Many online banking sites now offer sophisticated tools, including account
aggregation, stock quotes, rate alert and portfolio managing program to help you manage all
of your assets more effectively. Most are also compatible with money managing programs
such as quicken and Microsoft money.
• Cheaper alternative: - With increasing competition, it seems to be the cost factor that is
driving banks to offer the facility. The Internet is still a very cheap alternative to opening a
physical branch, and most of the push seems to be coming from the supply side. The costs of
a banking service through the Internet form a fraction of costs through conventional methods.
• From snob value to necessity: - A couple of years ago, there was a belief even among
bankers that customers opening new accounts wanted the online banking facility, just to “feel
good” and very few of them actually used the services. Today, bankers believe that the trend
from `nice to have' is changing to `need to have'. The "snob value" of banking with an
organization that could offer service on the Internet has given way to a genuine necessity, he
feels. "It all depends on how busy a person is."

DISADVANTAGES OF INTERNET BANKING

• Start-up may take time -I order to register for your bank’s online program, you will
probably have to provide ID and sign a form at a bank branch. If you and your spouse wish to
view and manage their assets together online, one of you may have to sign a durable power of
attorney before the bank will display all of your holdings together.
•Learning curves- Banking sites can be difficult to navigate at first. Plan to invest some time
and\or read the tutorials in order to become comfortable in your virtual lobby.
•Bank site changes- Even the largest banks periodically upgrade their online programs,
adding new features in unfamiliar places. In some cases, you may have to re-enter account
information.
 INTRODUCTION OF HDFC AND ICICI BANK

HDFC COMPANY PROFILE

INTRODUCTION

HISTORY HDFC Bank (NYSE: HDB), one amongst the firsts of the new generation, tech-
savvy commercial banks of India, was incorporated in August 1994, after the Reserve Bank
of India allowed setting up of banks in the private sector. The Bank was promoted by the
Housing Development Finance Corporation Limited, a premier housing finance company
(set up in 1977) of India.

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.
BRANCH NETWORK
Currently HDFC Bank has 1416 branches, 3382 ATMs, in 550 cities in India, and all
branches of the bank are linked on an online real-time basis. The bank offers many
innovative products & service s to individuals, corporate, trusts, governments partnerships,
financial institutions, mutual funds, insurance companies.
It is a path breaker in the Indian banking sector. In 2007 HDFC Bank acquired Centurion
Bank of Punjab taking its total branches to more than 1,000. Though, the official license was
given to Centurion Bank of Punjab branches, to continue working as HDFC Bank branches,
on May 23, 2008.
BUSINESS FOCUS
HDFC Bank's mission is to be a World-Class Indian Bank. The Bank's aim is to build sound
customer franchises across distinct businesses so as to be the preferred provider of banking
services in the segments that the bank operates in and to achieve healthy growth in
profitability, consistent with the bank's risk appetite. The bank is committed to maintain the
highest level of ethical standards, professional integrity and regulatory compliance. HDFC
Bank’s business philosophy is based on four core values: Operational Excellence, Customer
Focus, Product Leadership and People.
BUSINESS PROFILE
HDFC Bank caters to a wide range of banking services covering commercial and investment
banking on the wholesale side and transactional/branch banking on the retail side. The bank
has three key business areas:
• Wholesale Banking Services: The Bank's target market is primarily large, blue chip
manufacturing companies in the Indian corporate sector and to a lesser extent, emerging
midsized corporate. For these corporate, the Bank provides a wide range of commercial and
transactional banking services, including working capital finance, trade services, transactional
services, cash management, etc. The bank is also a leading provider of structured solutions
that combine cash' management services with vendor and distributor finance for facilitating
superior supply chain management for its corporate customers.
• Retail Banking Services: The objective of the Retail Bank is to provide its target
market customers a full range of financial products and banking services, giving the
customer a one stop window for all his/her banking requirements. The products are
backed by world-class service and delivered to the customers through the
growing branch network, as well as through alternative delivery channels like ATMs,
Phone Banking, Net Banking and Mobile Banking.
The HDFC Bank Preferred program for high-net-worth individuals, the HDFC Bank
Plus and the Investment Advisory Services programs have been designed keeping in
mind needs of customers who seek distinct financial solutions, information and advice on
various investment avenues. The Bank also has a wide array of retail loan products including
Auto Loans, Loans against marketable securities, Personal Loans and Loans for Two-
wheelers. It’s also a leading provider of Depository Services to retail customers, offering
customers the facility to hold their investments in electronic form. HDFC Bank was the first
bank in India to launch an International Debit Card in association with VISA
(VISA Electron) and issues the MasterCard Maestro debit card as well. The debit card
allows the user to directly debit his account at the point of purchase at a
merchant establishment, in India and overseas. The Bank launched its credit card in
association with VISA in November 2001. The Bank is also one of the leading players in the
"merchant acquiring" business with over 25,000 Point-of-sale (POS) terminals for debit /
credit cards acceptance at merchant establishments. The Bank is well positioned as a leader
in various net-based B2C opportunities including a wide range of Internet banking services
for Fixed Deposits, Loans, Bill Payments., etc.
Treasury Operations: Within this business, the bank has three main product areas- Foreign
Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities
With the liberalization of the financial markets in India, corporate need more sophisticated
risk management information, advice and product structures, These and fine pricing on
various treasury products are provided through the bank's Treasury team. To comply with
statutory reserve requirements, the bank is required to hold 25% of its deposits in
government securities. The Treasury business is responsible for managing the returns and
market risk on this investment portfolio.
HDFC BANK SERVICES
NET BANKING: Net Banking is HDFC Bank's Internet Banking service. Providing up-to-
the-second account information, Net Banking lets you manage your account from the
comfort of your mouse - anytime, anywhere.
HDFC Bank Net Banking Secure Access. HDFC Bank has implemented a new security
solution for its customers - Secure Access .As your security is our top priority, we
have initiated the Secure Access solution to protect you from fraudsters and hackers - who
are looking to find away to access your account. Currently following transactions are
covered under Secure Access
• Transfer from one HDFC Bank account to other HDFC Bank account holders (under
distinct customer ID)
• Transfer from HDFC Bank account to any other Bank's account (also known as RTGS
& NEFT)
• Visa Money Transfer
• Third Party Demand Draft through Net Banking.
Third Party Transfer-Third-Party Transfer is a Net Banking feature for which you will
need your unique Customer ID and IPIN (password). Login to Net Banking to confirm
that your ID is active in our records.
What is TPT?
With Third-Party Transfer (TPT) you can transfer funds online from your HDFC Bank
account to another HDFC Bank/Other Bank account (beneficiary), anywhere in India. This
is a real-time transaction and the debit and credit will reflect in the respective
accounts immediately.
Third Party Transfer can be initiated:
• From your Account to other Bank Accounts using
• National electronic Funds Transfer (NEFT) - Funds will be credited to the beneficiary
account in two working days
• Real Time Gross Settlement (RTGS) - Funds will be credited to the beneficiary
account on the same working day.
• From your HDFC Bank account to other HDFC Bank accounts (different cut sides).
• From your account to any Visa Card (Debit or Credit) within India.
• For issuance of Third Party Demand Drafts from your account. You c an transfer up to a
maximum of Rs. 10, 00,000/- per cuts id per day using this facility. This amount can be
transferred in parts or on a single basis.
INSTA IPIN FACILITY
It has be en our constant endeavor to make banking a hassle-free experience for you. At
HDFC Bank, we understand that it is quite possible to forget even important things like your
Net Banking password (IPIN). But that should not be holding you back from accessing your
bank account. You can now re-generate your Net Banking password instantly with the
help of your Debit Card details and start using your ne w password (IPIN)
immediately. No need to request for a new password and await its arrival. And it is even
better as you select your new HDFC Bank password yourself so it become s much easier to
remember the same .

CREDIT CARDS ONLINE

We take great pleasure in announcing that the HDFC Bank Net Banking service is
now available for Credit Cards also. Now using your HDFC Bank Credit Card ha s
become more convenient and time saving. You can now access your Credit Card ac
count from home or office or even while traveling. With Net Banking you ca n view your
card account information and do much more just a t the click of a button. Currently
the following Credit Cards Net banking features are available:-
• Account Information
• Unbilled Transactions
• Credit Card Statement
• Download Card Statement (upto last 6 months)
ONEVIEW:
One View is a revolutionary service from HDFC Bank that allows you to manage
multiple accounts in different banks through one single online interface. If you are an
HDFC Bank customer and have one or more accounts with Citibank, ICICI Bank, HSBC
India, Standard Chartered Bank then One View is just right for you.
FEATURES & BENEFITS
No need to individually log on to internet banking of every account. Just log on to
One View and manage upto FIVE accounts in different banks.
• Remember only ONE password.
• No charges whatsoever
HOW SECURE IS ONEVIEW?
One View gives you the world class banking security and technology sophistication
you'd expect of HDFC Bank, with features such as:
• Robust firewall protection makes it nearly impossible to break through.
• All information is transmitted using advanced 128 bit Secure Socket Layer (SSL)
encryption technology.
• Automatic time-outs ensure that your account details are not viewed by others.
• You can only view your accounts and cannot transact, so your money is absolutely
safe.
INSTA ALERTS: Now you can get regular updates on your bank account on your
mobile phone or email ID. Just register for our Insta Alert service and receive
updates on your account as and when the select transaction happens - all this
without visiting the branch or ATM. You can register for any or all of the following alerts:
• Debit transactions greater than Rs. 5,000/ Rs.10, 000/ Rs. 20,000/Rs. 50,000.
• Credit in account greater than Rs. 5,000/ Rs.10, 000/ Rs. 20,000/Rs. 50,000
• Account Balance below Rs. 5,000/ Rs.10, 000/ Rs. 20,000/Rs. 50,000-
• Weekly account balance
• Salary Credits
• Utility bill payment due Alert
MOBILE BANKING:
Your Mobile is now your bank! Now access your bank ac count and conduct a host
of banking transactions through your mobile, with our unique Mobile Banking service.
You can check your account level information such as balance details, mini statement,
and cheque status as well as carry out financial transactions such as Funds Transfer
using HDFC Bank Mobile Banking service.
FEATURES OF MOBILE BANKING
Using our Mobile Banking service, you can avail of a host of features a t your finger tips
• Perform funds transfers.
• Get your balance details.
• Obtain your last 3 transaction details.
• Request a cheque book.
• Stop a cheque payment.
• Enquire cheque status.
• Request an account statement.
• Get Fixe d Deposit details.
• Request for I-PIN generation.
• Request a cheque book.
AUTOMATED TELLER MACHINE: With wide spread network of 4,000 ATMs across
India, enjoy the following benefits at your convenience.
• 24-hour access to Cash- Withdraw up to Rs.10, 000/- per day on your ATM Card and up
to Rs. 15,000 on your Debit Card.
• Personalized Cash Withdrawals – Save time on your cash withdrawal transactions by
pre -setting your preferred language / account / amount.
• View Account Balances & Mini-statements - Get details of the last 9 transactions on
your account with the mini-statement, along with your account balance.
• Change ATM PIN - Change your ATM PIN at any given point in time.
• Order a Cheque Book / Account Statement
• HDFC Bank Credit Card Payment - Make payment of your HDFC Bank Credit Card
dues using the ATM. The primary account of your Debit / ATM card will be debited.
• Deposit Cash or Cheques - Deposit Cash or Cheques into your account without
visiting the Branch. Available at Non-Branch HDFC Bank ATMs
• Transfer Funds between accounts – Transfer money between your accounts. Both
accounts must be linked to your ATM / Debit Card. Maximum of 16 A/Cs (Savings /
Current) can be linked to a card.
REFILL YOUR PREPAID MOBILE – Refill your prepaid mobile using Prepaid
Mobile Refill service instantly. HDFC Bank offers – Prepaid Mobile Refill, which
allows you to re charge your pre paid mobile phone anytime from any where and pay
directly from your Bank account. Avoid hassles of withdrawing cash or searching for a
retailer for buying the re charge card.
• You can avail of this service in two convenient ways: Prepaid Mobile Refill on Internet
Prepaid Mobile Refill on ATM Prepaid Mobile Refill on Internet You can now recharge
your Prepaid Mobile phone right here on the HDFC Bank website.
Enjoy Convenience e of: Recharging your prepaid mobile phone from the comfort of
your home or office anytime. Paying directly from your Bank account - a void the hassle of
withdrawing c ash from
an ATM or Branch. To avail the facility, customer has to go to the recharge page and
do the following steps:
• Select Mobile Operator Name, enter Mobile Number, Amount for Top-Up
• Confirm payment by logging into Net Banking using your Customer ID and IPIN
(Net Banking password).
• Depending on the recharge option chosen, your phone will be recharged in a few
seconds.
PHONE BANKING:
Your phone is now your bank. When you dial in to Phone Banking, a voice prompt
will guide you through the various transactions. You may also talk to a Phone Banker,
who will provide you with the required assistance. Avail of the following services via Phone
Banking:
• Check your account balance - Get up-to-the-second details of your Savings or Current
Accounts and your Fixed De posits. You can also get the details of the last 5 transactions
on your account, or have a mini statement of last 9 transactions faxed across to you.
• Enquire on the cheque status - You can use Phone Banking to check on the status of
cheques issued or deposited from anywhere in India.
• Order a Cheque Book / Account Statement - Just call Phone Banking and get your
Cheque Book or latest Account Statement de livered at your doorstep.
• Stop Payment - Stop payment of a single cheque or a series of cheques, 24 hours a
day. Loan Related queries - Get details of the outstanding loan amount, enquire about
your loan account, request for an inte rest certificate and repayment schedule, etc. Just call
Phone Banking in your city and dial 4 to speak to our Phone Banker
• Open a Fixed deposit or Enquire on your Fixed deposits / TDS*# - Talk to our Phone
Banker to easily open a Fixed Deposit over the phone, by simply authorizing a transfer
of funds from your Savings Account.
• Transfer Funds between accounts*# - You can also transfer money from one of your
accounts to another. Both accounts must be linked to your Customer ID. You can
transfer amounts upto Rs 1 Lac in a single day.
• Pay your bills - Pay your cellular, telephone, electricity and HDFC Bank Credit Card
bills through Phone Banking using Bill Pay, a comprehensive bill payments solution.
• Report loss of your ATM / Debit Card / Forex Plus Card - If your ATM / Debit / Forex
plus Card are lost, call any Phone Banking number to deactivate your card(s).
• Lear n about all our other products - Get details on HDFC Bank products & services by
talking to our Phone Banker.
• Enquire about latest Interest / Exchange rates - Get latest Interest rates on Deposits and
Foreign Exchange rates by talking to our Phone Banker.
• Request a Demand Draft / Manager 's Cheque #** -Call Phone Banking and get a
Demand Draft / Manager's Cheque delivered to your doorstep.
• Demat Related Queries - Get the Account holding de tails, Transaction details, ISIN
Number of a scrip, Status of Depository Slips, details of Client Master list (Dividend
account, Charges Debit account, PAN etc.) & others. Call Phone Banking in your city &
dial 5 to speak to our Phone Banker.

ICICI BANK PROFILE

INTRODUCTION
ICICI Bank is India's second-largest bank with total assets of Rs. 3,562.28 billion
(US$ 7 billion) at December 31, 2009 and profit after tax Rs. 30.19 billion (US$
648.8 million) for the nine months ended December 31, 2009. The Bank has a
network of 1,723 branches and about 4,883 ATMs in India and presence in 18
countries. ICICI Bank offers a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery channels and through its
specialized subsidiaries and affiliates in the areas of investment banking, life and non-
life insurance, venture capital and asset management. The Bank currently has
subsidiaries in the United Kingdom, Russia and Canada, branches in United States,
Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance
Centre and representative offices in United Arab Emirates, China, South Africa,
Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary ha s established
branches in Belgium and Germany. ICICI Bank's equity shares are listed in India on
Bombay Stock Exchange and the National Stock Exchange of India Limited and its
American Depositary Receipts (ADRs) are listed on the New York Stock Exchange
(NYSE).

The Bank is expanding in overseas markets and has the largest international balance
sheet among Indian banks. ICICI Bank now has wholly owned subsidiaries, branches and
representatives offices in 19 countries, including an offshore unit in Mumbai. This includes
wholly owned subsidiaries in Canada, Russia and the UK (the subsidiary through which the
Hi save savings brand is operated), offshore banking units in Bahrain and Singapore, an
advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and
representative offices in Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the
United Arab Emirates and USA. Overseas, the Bank is targeting the NRI (Non-Resident
Indian) population in particular.

ICICI reported a 1.15% rise in net profit to  1,014.21 crore on a 1.29% increase in
total income to  9,712.31 crore in Q2 September 2008 over Q2 September 2007. The bank's
CASA ratio increased to 30% in 2008 from 25% in 2007.

ICICI Bank is one of the Big Four Banks of India, along with State Bank of
India, Punjab National Bank Bank of India and Canara Bank — its main competitors.

HISTORY

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was
reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering
in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of
Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by
ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at
the initiative of the World Bank, the Government of India and representatives of Indian
industry. The principal objective was to create a development financial institution for
providing medium-term and long-term project financing to Indian businesses.

In 1954, The Industrial Credit and Investment Corporation of India Limited (ICICI) was
incorporated at the initiative of World Bank, the Government of India and representatives of
Indian industry, with the objective of creating a development financial institution for
providing medium-term and long-term project financing to Indian businesses. In 1994, ICICI
established Banking Corporation as a banking subsidiary. Formerly known as Industrial
Credit and Investment Corporation of India, ICICI Banking Corporation was later renamed as
'ICICI Bank Limited'. ICICI founded a separate legal entity, ICICI Bank, to undertake normal
banking operations - taking deposits, credit cards, car loans etc. In 2001, ICICI acquired Bank
of Madura (est. 1943). Bank of Madura was a Chettiar bank, and had acquired Chettinad
Mercantile Bank (est. 1933) and Illanji Bank (established 1904) in the 1960s. In 2002, The
Boards of Directors of ICICI and ICICI Bank approved the reverse merger of ICICI, ICICI
Personal Financial Services Limited and ICICI Capital Services Limited, into ICICI Bank.
After receiving all necessary regulatory approvals, ICICI integrated the group's financing and
banking operations, both wholesale and retail, into a single entity. At the same time, ICICI
started its international expansion by opening representative offices in New
York and London. In India, ICICI Bank bought the Shimla and Darjeeling branches
that Standard Chartered Bank had inherited when it acquired Grindlays Bank.

In 2003, ICICI opened subsidiaries in Canada and the United Kingdom (UK), and in the
UK it established an alliance with Lloyds TSB. It also opened an Offshore Banking Unit
(OBU) in Singapore and representative offices in Dubai and Shanghai. In 2004, ICICI opened
a representative office in Bangladesh to tap the extensive trade between that country, India
and South Africa. In 2005, ICICI acquired Investitsion no-Kreditny Bank (IKB), a Russia
bank with about US$4mn in assets, head office in Balabanovo in the Kaluga region, and with
a branch in Moscow. ICICI renamed the bank ICICI Bank Eurasia. Also, ICICI established a
branch in Dubai International Financial Centre and in Hong Kong. In 2006, ICICI Bank UK
opened a branch in Antwerp, in Belgium. ICICI opened representative offices
in Bangkok, Jakarta, and Kuala Lumpur. In 2007, ICICI amalgamated Sangli Bank, which
was headquartered in Sangli, in Maharashtra State, and which had 158 branches in
Maharashtra and another 31 in Karnataka State. Sangli Bank had been founded in 1916 and
was particularly strong in rural areas. With respect to the international sphere, ICICI also
received permission from the government of Qatar to open a branch in Doha. Also, ICICI
Bank Eurasia opened a second branch, this time in St. Petersburg. In 2008, The US Federal
Reserve permitted ICICI to convert its representative office in New York into a branch. ICICI
also established a branch in Frankfurt. In 2009, ICICI made huge changes in its organization
like elimination of loss making department and retrenching outsourced staff or renegotiate
their charges in consequent to the recession. In addition to this, ICICI adopted a massive
approach aims for cost control and cost cutting. In consequent of it, compensation to staff
was not increased and no bonus declared for 2008-09.

On 23 May ICICI Bank announced that it would merge with Bank of Rajasthan through a

share-swap in a non-cash deal that values the Bank of Rajasthan at about  3,000 crore. ICICI
announced that the merger expand ICICI Bank's branch network by 25%.

On 18h October 2010, ICICI will inaugurate I-Express, an instant cross-border money
transfer option for Non-Resident Indians (NRIs). This service will be available through the
ICICI Bank's select partners in the Gulf Cooperation Council.

In the 1990s, ICICI transformed its business from a development financial institution
offering only project finance to a diversified financial services group offering a wide variety
of products and services, both directly and through a number of subsidiaries and affiliates like
ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the

emerging competitive scenario in the Indian banking industry, and the move towards
universal banking, the managements of ICICI and ICICI Bank formed the view that the
merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities,
and would create the optimal legal structure for the ICICI group's universal banking strategy.
The merger would enhance value for ICICI shareholders through the merged entity's access
to low-cost deposits, greater opportunities for earning fee-based income and the ability to
participate in the payments system and provide transaction-banking services. The merger
would enhance value for ICICI Bank shareholders through a large capital base and scale of
operations, seamless access to ICICI's strong corporate relationships built up over five
decades, entry into new business segments, higher market share in various business segments,
particularly fee-based services, and access to the vast talent pool of ICICI and its
subsidiaries. 

In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the
merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal
Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger
was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court
of Gujarat at Ahmadabad in March 2002, and by the High Court of Judicature at Mumbai and
the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's
financing and banking operations, both wholesale and retail, have been integrated in a single
entity. 

ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors
and employees.
 ICICI net banking / internet banking offers various facilities and has been registering
increasing number of customers as well. The facility of net banking is immense and hence it
offers one of the largest customer bases. Some e-banking facilities provided by ICICI bank
are as follows-
 Transfer Funds Online.
 Account-2-Card Fund Transfer.
 Link your Bank/Card/Demat Accounts.
 Use your Debit Card Online.
 Pre-paid Mobile Recharge.
 Pay your Utility Bills.
 Send a Smart Money Order.
 Open Fixed Deposits and Recurring Deposits.
 Order a Demand Draft / Pay Order.
 Subscribe for Mobile Banking.
 Request a Cheque Book.
 Request a change of address.
 Stop Payment Request.
 Request a Debit Card.
 Monthly Bank Account Statement by E-mail.
 Re-issue/Upgrade of ATM/Debit Card.
 Link Bank Accounts to ATM/Debit Card.
 Renewal / Premature Closure of FD/RD.
 De-block/Activate ATM/Debit Card.
 Secure Mailbox.
 Request a Duplicate Physical Bank Statement

ICICI Bank is India's second-largest bank with total assets of Rs. 3,562.28 billion
(US$ 77 billion) at December 31, 2009 and profit after tax Rs. 30.19 billion (US$
648.8 million) for the nine months ended December 31, 2009. The Bank has a
network of 1,723 branches and about 4,883 ATMs in India and presence in 18
countries. ICICI Bank offers a wide range of banking products and financial services
to corporate and retail customers through a variety of delivery channels and through
its specialized subsidiaries and affiliates in the areas of investment banking, life and
non-life insurance, venture capital and asset management. The Bank currently has
subsidiaries in the United Kingdom, Russia and Canada, branches in United States,
Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance
Centre and representative offices in United Arab Emirates, China, South Africa,
Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established
branches in Belgium and Germany. ICICI Bank's equity shares are listed in India on
Bombay Stock Exchange and the National Stock Exchange of India Limited and its
American Depositary Receipts (ADRs) are listed on the New York Stock Exchange
(NYSE).

Subsidiaries

 I-Express, an instant cross-border money transfer option.

 ICICI Lombard
 ICICI Prudential

Acquisition
 2005 - Investitsionno-Kreditny Bank (IKB), a Russian bank
 2007 - Sangli Bank , Maharashtra State
 23 May - Bank of Rajasthan
Recognition

The Brand Trust Report, launched in 2011, has ranked ICICI in the 15th place as the most
trusted brand of India.

Controversy

ICICI Bank has been in focus in recent years because of alleged harassment of customers by
its recovery agents. Listed below are some of the related news links:

 ICICI Bank was fined  55 lakh for hiring goons (known coloquially as "goondas") to
recover a loan. Recovery agents had, allegedly, forcibly dragged out a youth (who was
not even the borrower) from the car, beaten him up with iron rods and left him bleeding
as they drove away with the vehicle. "We hold ICICI Bank guilty of the grossest kind of
 deficiency in service and unfair trade practice for breach of terms of contract of hire-
purchase/loan agreement by seizing the vehicle illegally","No civilised society governed
by the rule of law can brook such kind of conduct" said Justice Kaleem, who was born in
Laddhawala, Muzaffarnagar is the president of the consumer commission.
 Four ICICI loan employees arrested on theft charges in Punjab
 ICICI Bank told to pay  1 lakh as compensation for using unlawful recovery methods.
 RBI warns ICICI Bank for coercive methods to recover loans
 ICICI Bank drives customer to suicide - Four men including an employee of ICICI
Bank booked under sections 452, 306, 506 (II) and 34 of IPC for abetting suicide.
According to the suicide note they advised him, "If you cannot repay the bank loan, sell
off your wife, your kids, yourself, sell everything at your home. Even then if you cannot
not pay back the due amount, then it's better if you commit suicide." India biggest private
bank has compensated the life by money.
 ICICI Bank on huge car recovery scam in Goa - ICICI Bank invest in car-jackers to
recover loans in Goa. A half an hour investigative report on CNN-IBN's 30 Minutes. The
under cover report was executed by CNN-IBN's Special Investigations Team from
Mumbai, led by Ruksh Chatterji.
 Family of Y. Yadaiah alleged that he was beaten to death by ICICI Bank’s recovery
agents, for failing to pay the dues. Four persons were arrested in this case.
 A father while talking to Times of India, alleged that "ICICI Bank recovery agents
visited his house and threatened his family. And his son Nikhil consumed poison because
of the tension".
 Oppressed by ICICI Bank's loan recovery agents, Shakuntala Joshi (38), committed
suicide by hanging. The suicide note stated that she was upset with the ill-treatment
meted out by ICICI Bank's recovery agents and had thus decided to end her life.
 In another case of a suicide it is alleged that ‘goondas’ sent by ICICI Bank abused
Himanshu and his wife in front of the entire residential colony before taking away his
vehicle. Feeling frustrated and insulted, he reportedly committed suicide.
 C.L.N Murthy, a scientist with the Hyderabad-based Indian Institute of Chemical
Technology, was allegedly tortured by recovery agents of ICICI Bank after he defaulted
on his loan.“They humiliated me no end. They ripped my shirt, shaved my moustache, cut
my hair and gave electric shocks on my chest and even spat on my face" adds Murthy.
 A dozen recovery agents of ICICI Bank, riding on bikes, allegedly forced a prominent
lawyer, Someshwari Prasad, to stop his car. They held Prasad at gunpoint and also
slapped him to force him. A manager of the ICICI Bank branch, Rakesh Mehta, along
with four other employees were arrested.
 In a landmark case, Allahabad High Court had ordered registration of an FIR against
ICICI Bank's branch manager, President, Chairman and Managing Director on a
complaint of 75-year-old widow Prakash Kaur. She had complained that “goondas” were
sent by the bank to harass her and forcibly took away her truck. When the Supreme Court
wanted to know about the procedure adopted by the Bank, ICICI Bank counsel said
notice would be sent to a defaulter asking him either to pay the installments or hand over
the vehicle purchased on loan, failing which the agents would be asked to seize it. When
the Bench pointed out that recovery or seizure could be done only legally, ICICI Bank
counsel said, "If we have to go through the legal process it would be difficult to recover
the installments as there are millions of defaulters"
 Taking strong exception to ICICI Bank's use of 'goondas' against a defaulter, the
president of Consumer Disputes Redressal Forum said, "The fact leaves us aghast at the
manner of functioning and goondaism in which the bank is involved for a petty amount
of  1,889... such attitude is deplorable and sends chills down the spine....The bank had the
option to recover dues through legal means. They have no legal right to snatch the vehicle
in such a manner which amounts to robbery,". In this case recovery agents pointed a
pistol at a defaulter when he tried to resist. ICICI bank argued that they had taken
peaceful possession of the vehicle "after due intimation to the complainant as he was
irregular in remitting the monthly instalments". But the court found out that the records
proved otherwise.
 Two senior ICICI Bank officials were booked for abducting one Vikas Porwal from
his house and keeping him hostage in the Bank's premises.
 The credit card division of the ICICI Bank allegedly threatened a senior citizen in
Chandigarh with a fictitious arrest warrant on account of a default that never was.
 A Consumer Commission has asked ICICI Bank MD K V Kamath to appear before it
in respect a complaint. A borrower on protesting against the forceful dispossession of his
car, as seen in the post-incident photographs, was roughed up and sustained injuries.
 An 18-year-old boy was allegedly kidnapped and detained at the Pune branch of
ICICI Bank.
 There have been several other minor legal cases accusing harassment by ICICI Bank
 A consumer court imposed a joint penalty of  25 lakh on ICICI Bank and American
Express Bank for making unsolicited calls.

ICICI BANK SERVICES

ICICI net banking / internet banking

ICICI net banking / internet banking offers various facilities and has been registering
increasing number of customers as well.

The facility of net banking is immense and hence it offers one of the largest customer bases.

You can get the luxury of linking many accounts with the same customer id apart from that
you can view all the transactions online as well.  You can transfer the funds to other accounts
of the same bank or to other banks as well. Official website for accessing icici net banking /
internet banking is www.icicibank.com.

Apart from that, you can transfer funds from bank account to credit cards.  If in case you have
done any transactions through your credit card, there will be auto debit. If you want to see the
account statement, you don’t need to go to the bank, instead you can see through email as
well. One of the best things again relates with the fact that you can file online taxes.

Now all your important transactions can be done online and are just a click away as well.
Since the bank offers so many facilities as a result it has become one of the preferred choices
of the people and it’s the love and affection of the people which has made the bank coming
up with innovations to ease the lives of people so that you can have many reasons to opt for
icici net banking / internet banking

MOBILE BANKING: Conducting banking operations using the mobile phone has been fast
catching up around the world for its convenience. We have launched mobile services in India
to convenience our customers. You can do your banking operations sitting anywhere,
anytime. It is discreet, personalized and on your phone. Use it when at a meeting, in a movie
hall, while having your Sunday brunch or at any other place you cannot usually expect to get
the information you want from your bank. It is an empowering and user friendly mode of
accessing your bank account. To get started, take a look at the menu on the left and go through
our various services

You can now access the following ICICI Bank services via your mobile phone:

INSTA BANKING
Insta Banking makes your banking simpler, faster, and more convenient. Through
these 5 great channels - Internet Banking, Mobile Banking, ICICI Bank ATMs, Instant
Voice Response (IVR) Banking and I Mobile - you can do your day today banking
anytime, anywhere.

INTERNET BANKING
ICICI Bank brings convenience and security to your desktop. Now you can check
your account balance, transfer funds, download your account statement, and pay bills or even
book tickets online, from the comfort of your home or in the middle of a busy day at the
office. Explore the power of simpler and smarter Banking whether you are a Banking, Credit
Card, Loan or Demat customer.

ATM BANKING

Bank 24/7 through a widespread network of ICICI Bank ATMs making life easy and
convenient for you. User-friendly graphic screens and easy to follow instructions
available in a choice of local languages, makes ATM Banking with ICICI Bank a
smoother experience. ICICI Bank's widespread network of ATMs makes it easy and
convenient for you to bank 24/7. With over 4,883 + ATMs and 1,626 + branches set up
within India, we ensure that you are never too far from an ICICI Bank ATM. User-friendly
graphic screens and easy to follow instructions in a choice of local languages, makes ATM
Banking with ICICI Bank a smooth experience.

ICICIBank.com also features the easy to access ATM Locator, making it easy for you
to find an ICICI Bank ATM in your neighborhood.

The ICICI Bank edge

 Cash withdrawal up to Rs. 25,000/- per day from your account (50,000 for HNI's).
Fast Cash option facilitates withdrawal of prefixed amounts; Ultra Fast Cash allows
withdrawal of Rs. 3000/- in one shot.
 Check your ledger balance and available balance.
 Print out your Mini Statement which displays your last 8 transactions and the current
balance.
 Deposit Cash / Cheques at all full function ATMs; cash deposited in ATMs will be
credited to the account on the same day if deposited before the clearing and cheques
are sent for clearing on the next working day.
 Transfer funds from one account to another linked account in the same branch.
 Change the Personal Identification Number (PIN) of your ATM or Debit card Pay
bills, make donations to temples / trusts, buy internet packs, airtime recharges for
prepaid mobile phones, etc.
 Request for a cheque book from our ATMs; concerned branch dispatches it to reach
you within 10 working days.
  No charge is levied on ICICI Bank customers for transacting through ICICI Bank's
ATMs. But, if the minimum quarterly average balance is not maintained in
your savings account, first 6 transactions in the quarter are free and thereafter, Rs. 25
per transaction is charged.

I MOBILE

ICICI Bank's I Mobile is a breakthrough innovation in banking that allows you to

transfer funds, make your credit card payments, pay utility bills, check your balance and do
lots more, for free. So why wait anymore. Just download the I Mobile application on
your phone by sending us an SMS and experience I Mobile. . ICICI Bank brings to you
the 2nd generation I Mobile that has newer features, smarter interface, quicker
navigation and enhanced functionality. ICICI Bank's I Mobile is your answer to banking
on the move. The next generation I Mobile is your key to a faster, easier and simplified
banking service. Using GPRS enabled on your mobile handset or through SMS, I Mobile
helps you to connect directly to your bank account. This Rich Client Based Application
needs to be installed on your mobile thereby enabling a single click access to your account.

Services available with i Mobile:

 Payment of utility bills and credit card bills

 Transfer of funds to any bank account
 Payment of insurance premium
 Placement of service request such us ordering of cheque books, bank account
statements, cheque status and balance enquiry.

Access the following ICICI Bank services via I Mobile:

Bank Account

Funds transfer

 Bill Payment
 Balance Enquiry
  Last 5 transactions
 Cheque Book Request
 Stop Cheque request
 Cheque status Enquiry

Credit Card

 Balance Details
 Last Payment Details
 Payment Due Date
 Reward Point Status

Demat A/c
 Holding Enquiry
 Transaction Status
 Bill Enquiry
 ISIN Enquiry

Loan A/c
 Provisional IT Certificate
 Final IT Certificate
 Reset Letter
 Rescheduled Letter
 Loan Agreement Copy

M Shop

 Prepaid Mobile Recharge

Other Services

 Status of Service Request Raised

 Locate US

IVR BANKING
Find answers to all your banking needs from your phone. ICICI Bank's Instant Voice
Response (IVR) Banking is free of charge, fully automated and at the same time user-friendly.
Just having an ATM PIN for your account and credit card ensures that your transactions are
secure.

 Saving A/C
 Credit cards
 Demat
 Bonds
Others

TV BANKING
At ICICI Bank, we've introduced India to an all new way of banking. TV Banking.
This pioneering initiative now enables you to get information regarding loans,
accounts, deposits and a lot more while you're watching that exciting cricket match or your
favorite sitcom.
 CHAPTER -2

REVIEW OF LITERATURE

Author Name: Malhotra a, Pooja & Singh, B. Topic: “ Determinants of Internet banking
adoption by banks in India” Date: December, 2010.
This study is an attempt to present the present status of Internet banking in India and the
extent of internet banking services offered by Internet banks. In addition, it seeks to
examine the factors affecting the extent of Internet banking services. The data for this
study are based on a survey of bank websites explored during July 2008. The sample
consists of 82 banks operating in india at 31 March 2007. Multiple regression
technique is employed to explore the determinants of the extent of Internet banking
services. The results show that the private and foreign Internet banks have performed
well in offering a wider range and more advance d services of Internet banking in
comparison with public sector banks. Among the determinants affecting the extent of
Internet banking services, size of the bank, experience of the bank in offering Internet
banking , financing pattern and ownership of the bank are found to be significant. The
primary limitation of the study is the scope and size of its sample as well as other
variables (e.g. market, environmental, regulatory etc ) which may have an effect on the
decision of the banks to offer a wide range of Internet banking services. The purpose of
the study is to help fill significant gaps in knowledge about the Internet banking landscape
in India. The findings are expected to be of great use to the government, regulators,
commercial banks, and other financial institutions, e.g. co-operative banks planning to
offer Internet banking , bank customers and re searchers. The bankers as well as society
at large will come to know where the banks lag in terms of adoption of Internet banking
And in providing different products and services. An understanding of the factors
affecting the extent of Internet banking services is essential both for economists
studying the determinants of growth and for the creators and producers of such
technologies. Moreover, this paper contributes to the empirical literature on diffusion of
financial innovations, particularly Internet banking , in a developing country, i.e. India
Author Name: Polaris Software Lab Limited (POLS.BO) Topic: “Polaris Software and
IndusInd Bank launch INTELLECT PRIVACY Internet Banking Security Card”, PR
Newswire” Date: May, 21, 2010.
In this study Polaris Software Lab Limited (POLS.BO), a leading Financial Technology
Company, launched Intellect(TM) PRIVACY based on state-of-the-art technology and
four patents filed by the India n Institute of Technology Madras. IndusInd Bank has be
come the first bank in India to implement Intellect(TM) PRIVACY, an online and internet
banking security card, for its internet banking customers. The technology will protect
customers and banks from practically all kinds of phishing attacks, viz. deceptive e-mail,
key/screen logger, brute force/dictionary attacks and Trojans, etc. Intellect PRIVACY
uses multi factor, dynamic authentication technology providing for authorizing online
banking transactions, in a completely secure platform. Commenting on the innovation,
Professor L S Ganesh, Coordinator of the programmer, said, "At IIT Madras, the
Department of Computer Science and Engineering and the Department of Management
Studies got particularly interested in designing an internet security technology that is
cost efficient and easy to use in a rapidly growing e-commerce scenario, and
transferring it commercially. We chose the Cost-Usability-Security (CUS) approach to
arrive at a solution and Polaris Software created an eminently usable application for
the banking industry. IndusInd Bank, which was looking for providing greater security
for web based transactions, became the first organization to adopt it." Intellect PRIVACY
is a simple plastic card that customers c an use to generate a one-time password
(OTP) for carrying out any kind of online banking transaction including the sign on.
Banks can issue booklets containing a desired number of cards that would last many
transactions. The card has no pilferage value by itself and customers can easily manage its
life cycle, including making a request for a new booklet and reporting loss of cards through
online banking.
Author Name: Azouzi, D. Topic: “The Adoption of Electronic Banking in Tunisia”, Journal
of Internet Banking and Commerce” Date: June, 09 2009.
This paper aims to check if the current and prompt technological revolution altering
the whole world has crucial impacts on the Tunisia n banking sector. Particularly, this
study seeks some clues on which we can rely in order to understand the customers'
behavior regarding the adoption of electronic banking. To achieve this purpose, an
empirical research is carried out in Tunisia and it reveals that panoply of factors is affecting
the customers-attitude toward e-banking. For instance; age, gender and educational
qualifications seem to be important and they split up the group into electronic banking
adopters and traditional banking defenders and so, they have significant influence on the
customers' adoption of e-banking. Furthermore, this study shows that despite the
presidential incentives and in spite of being fully aware of the e-banking's benefits,
numerous respondents are still using the conventional banking. It is worthy to mention
that the fear of loss because of transactions errors or hackers plays a significant role in
alienating Tunisian customers from online banking.

Author Name: B. Dizon, J.A. Topic: “Special Feature: Electronic Banking”. Date:
January, 22, 2009.
In this study they have founded that while big banks still conduct the bulk of their
business in brick and mortar bank branches, the finance sector has been increasingly
investing on e-banking facilities to offer 24-hour, queue- free services to their regular
clients, whether through ATM machines, mobile phones or the Internet. "E- Banking's
appeal is primarily its convenience. Clients nowadays want instant results; they don't
want to wait anymore," said Francisco M. Caparros, Jr., senior vice-president of Asia
United Bank and president of Banc Net. It's also turned out to be a more efficient way to
process transactions, as e-banking does away with most of the paperwork that clients have to
accomplish. "A lot of people don't like filling forms," Mr. Caparros added. "Online
banking, in particular, relies on user names and passwords which need to be protected,"
said Ferdinand G. La Chica, first vice- president and marketing group head for Sterling
Bank of Asia. These anti- theft barriers are at time s supplemented by transaction
passwords and "tokens", often a keychain-like device that is issued to the client and
generates random, one-time passwords to enable him to log into his account online.
Last year, the Rural Bank Association of the Philippines announced that its members
are looking to appoint local merchants like sari-sari stores as third party agents where
consumers can open new accounts and make large payments. Such informal outlets
will enable banks to reach out to small-income businesses and individuals, particularly
those in the agrarian sector, most of who are based outside the city center.
Name: Uppal, R.K. & Chawla, R. Topic: “E-Delivery Channel-Based Banking Services:
An Empirical Study. Institute of Chartered Financial Analysts of India (Hyderabad)”.
Date: Feb,06,2009.
This study highlights customer perceptions regarding e-banking services. A survey of
1,200 respondents was conducted in October 2008 in Ludhiana district, Punjab. The
respondents were equally divided among three bank groups namely, public sector, private
sector and foreign banks. The present study investigates the perceptions of the bank
customers regarding necessity of e-banking services, quality of e-banking services, bank
frauds, future of e-banking, preference of bank customers regarding banks, comparative
study of banking services in various bank groups, preferences regarding use of e-
channels and problems faced by e-bank customers. The major finding of this study is
that customers of all bank groups are interested in e-banking services, but at the same
time are facing problems like, inadequate knowledge, poor network, lack of
infrastructure, unsuitable location, misuse of ATM cards and difficulty to open an
account. Keeping in mind these problems faced by bank customers, this paper frames
some strategies like customer education, seminars/meetings, proper network and
infrastructure facilities, online shopping facilities, proper working and installation of
ATM machines, etc., to enhance e-banking services. Majority of professionals and business
class customers a s well as highly educated and less educated customers also feel that
e-banking ha s improved the quality of customer services in banks.

Author Name: Reeti, Sanjay, and Malhotra, A. Topic: “The Customers’ perspective s
regarding e-banking in an e merging economy.” Date: June,28, 2009.
Stated about the Customers’ perspective s regarding e-banking in an e merging economy.
So that, the author determining various factors affecting customer perception and attitude
towards and satisfaction with e- banking is an essential part of a bank's strategy
formulation process in an emerging economy like India. To gain this understanding in
respect of Indian customers, the study was conducted on respondents taken from the
northern part of India. The major findings depict that customers are influenced in their
usage of e-banking service s by the kind of account they hold, their age and
profession, attach highest degree of usefulness to balance enquiry service among e
-banking services, consider security & trust most important in affecting their
satisfaction level and find slow transaction speed the most frequently faced problem while
using e-banking.
Author Name: Hsun, K.S. Topic: coherence of the financial service sector and adopts
different observational variables to identify innovation capital (training and R&D
density) and process capita l (IT system sufficiency). Date: March,22,2008.
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 capita l (IT system sufficiency). The results show that human capital has a
direct impact on both innovation capita l and process capital, which in turn affect
customer capita l; 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

Author Name: Laukkanen, P., Sinkkonen, S. & Laukkanen, T. Topic: “Consumer

resistance to internet banking: postponers, opponents and rejecters” Date:
September,11,2008.
The purpose of this paper is to further the understanding of innovation resistance by
dividing internet banking non-adopters into three groups based on their intentions to
use the innovation. Thereafter, the aim is to identify how the resistance differs in these
customer groups. This study identifies three groups of internet banking non-adopters,
namely postpones, opponents and rejecters. The data were collected by conducting an
extensive postal survey among the retail banking customers in Finland who had not
adopted internet banking. The measurement development was based on consumer
resistance theory and the earlier literature on internet banking. Principal component
analysis was used to classify the resistance items into five adoption barriers derived
from the earlier literature. Thereafter, analysis of variance was used to analyze the
statistical differences in resistance to internet banking between the three groups.
Significant differences were identified between the groups explored. The resistance of the
rejecters is much more intense and diverse than that of the opponents, while the
postpones show only slight resistance. The results also indicate that psychological
barriers are even higher determinants of resistance than usage and value, which are
constructs relate d to ease-of-use and usefulness determining acceptance in the
traditional technology acceptance model. Moreover, the findings highlight the role of self-
efficacy in bank customers' risk perceptions to internet banking. This study provides
further understanding of what inhibits internet banking adoption by comparing three
non-adopter groups with respect to their resistance to internet banking. It also has
implications for management in overcoming non-adopters' resistance to the innovation.
Author Name: Routray Topic: “Wire less ATM: A Technological Framework to M-
Banking” Date: August 19, 2008.
The study describes that are becoming enablers for organizations to conduct business
more effectively and efficiently. One of the most effective applications is mobile banking
(m-banking). For any application to gain recognition technological advancements play a
vital role. To make m-banking application a success bandwidth management is an
important issue. The increased flexibility and mobility feature of wireless ATM and its
bandwidth on demand function is motivating a large number of carriers towards
deployment of the WATM networks. But there are certain issues which are required to
be addressed in WATM. The issues are cost effective planning of network, location
management and handover management. In this paper we have suggested and evaluate d a
technological framework for the m-banking application using wireless ATM which
optimizes the bandwidth usage a nd provides a n effective handover management.
Simulation results show that the resultant framework is very effective in handling the
bandwidth and the handover issue in wireless ATM and provides an effective WATM
framework model.
Author Name: Malhotr a, P. & Singh, B. Topic: “An analysis of Internet banking
offerings and its determinants in India ”. Date: November 07, 2007.
Stated about this research tells us that the larger banks, banks with younger age,
private ownership, 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
de livery. 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 a
re related to developed markets, e.g. US or European banking markets. Hence, this
paper contributes to the empirical literature on diffusion of financial innovations,
particularly Internet banking, in a developing country.
Author Name: Shah & Braganza Topic: “A Survey of Critical Success Factors in e-
banking”, Date: April 18, 2007.
This survey indicates the Critical Success Factors in e- banking and the author suggest in
this article that the organizational factors, which are critical to the success of e -banking,
are investigated. Different piece s of literature report different factors as key to success
and generally based on subjective, perceptual data. A synthesis of existing literature is a
basis for survey questions. The data was collected from UK based financial sector
organizations who are offering their services on electronic channels, using postal
questionnaires. The top factors found to be most critical for the success in e-banking
are: quick responsive products/services, organizational flexibility, services expansion,
systems integration and enhanced customer service. An important lesson from this research
is that organizations need to view the e-banking initiative as a business critical area
rather than just a technical issue. The y need to give attention to internal integration, which
may include channels, technology and business process integration, and improving the
overall services to their customers.
Author Name: Bauer, Malik & Falk Topic: “Measuring the quality of e banking portals”,
Date: July 27, 2007.
This article reviews the measuring the quality of E-Banking portals. In the internet
economy, the business model of web portals has spread rapidly over the last few
years. Despite this, there have been very few scholarly investigations into the service s
and characteristics that transform a web site into a portal as well as into the dimensions
that determine the customer’s evaluation of the portal’s service quality. Based on an
empirical study in the field of e-banking the authors validate a measurement model for
the construct of web portal quality based on the following dimensions: security and
trust, basic services quality, cross- buying services quality, added value, transaction
support and responsiveness. Findings – The identified dimensions ca n reasonably be
classified into three service categories: core services, additional services, and problem-
solving services. Originality/value – The knowledge of these dimensions as major
determinants of consumer’s quality perception in the internet provides banks a
promising starting point for establishing an effective quality management for their e-
businesses.
Author Name: Picado, Gonzalez & Eckelman Topic: “Customer Satisfaction Using QFD”
Date: October 20,2004.
This study investigated the customer satisfaction using QFD and a research on service
quality and customer satisfaction has become significant in the service industries. This
study develops a case study that considers both external and internal service
management issues and subsequent service innovations based on the framework of
quality function deployment (QFD). The application of the customer window quadrant
(CWQ) and the action plan matrix in the analysis of customer and service elements
constitute a different approach for QFD. Some benefits and disadvantages of the QFD
process are discussed as compared to extant service quality and customer paradigms.
Finally, suggestions and directions are offered for future applications, with particular
interest in the e-bank service management issues.
Author Name: Nitsure, R.R. Topic: “E-Banking: Challenges and Opportunities”.
Date: December 25, 2004.
This article indicates the E-banking Challenges and opportunities lies in the banking
industry. E-banking has the potential to transform the banking business a s it significantly
lowers transaction and delivery costs. This pa per discusses some of the problems
developing countries, which have a low penetration of information and telecommunication
technology, face in realizing the advantages of e- banking initiatives. Major concerns
such as the 'digital divide' between the rich and poor, the different operational
environments for public and private sec tor banks, problems of security and
authentication, management and regulation, and inadequate financing of small and medium
scale enterprises (SMEs) are highlighted.

Author Name: Asghar Topic: “Banking In a Cloud of Electrons”. Date: March 17, 2004.
The study depicts that online banking and the web channel are here to stay. Financial
services rely on multiple distribution channels and e-banking represents the channel of
the future. Success stories around e-banking have taken shape through a mix of
innovation and experience. The financial services sector needs to apply both these factors to
their advantage to produce the desired results. Win-win implementation of e-banking not
only require s high Internet penetration rates and stable infrastructures, but more
importantly, for companies to realize the powerful revenue opportunity of this business
arm vis-à-vis the traditional brick and mortar system of operation. Therefore, it is
imperative that all e-banking implementations are seamlessly integrate d with the core
'traditional' services thereby making the online experience truly holistic for the customer.
 CHAPTER -3
RESEARCH METHODOLOGY

What is Research…?
Research is defined as human activity based on intellectual application in the investigation of
matter. The primary purpose for applied research is discovering, interpreting, and the
development of methods and systems for the advancement of human knowledge on a wide
variety of scientific matters of our world and the universe.
The term research is also used to describe a n entire collection of information about a
particular subject.
Methodology
is the method followed while conducting the study on a particular project. Through
this methodology a systematic study is conducted on the ba sis of which the basis of a
report is produced.
It is a written game plan for conducting Research. Research methodology has many
dimensions. It includes not only the research methods but also considers the logic
behind the methods used in the context of the study and explains why only a
particular method or technique has bee n used. It also helps to understand the
assumptions underlying various techniques and by which they can decide that certain
techniques will be applicable to certain problems and other will not. Therefore in
order to solve a research problem, it is necessary to design a research methodology for the
problem as the some may differ from problem to problem. The methodology adopted
for studying the objectives was surveying the in-house customers of these two banks in
the city of Jalandhar.

3.1 TITLE
The title of this report is “Satisfaction from E-banking services. A comparative study of
HDFC and ICICI bank.”
3.2 OBJECTIVES OF THE STUDY
• To study about the factors that affects the customer perception towards e- banking of
HDFC and ICICI bank.
• To know about the current and future prospects of E-Banking to the customers.
• To find out the major problems faced by the customers while using e-banking services.

NATURE
The methodology adopted to achieve the project objective involved descriptive research
method. The information required for fulfilling the objective of study was collected
from various primary and secondary sources.
3.3 TYPE OF RESEARCH
This study is DESCRIPTIVE in nature. It helps in breaking vague problem into
smaller and precise problem and emphasizes on discovering of new ideas and insights.
RESEARCH DESIGN
Research design constitutes the blue print for the collection, measurement and analysis
of data. The present study seeks to identify the extent of preferences of E- Banking
over traditional banking among service class. The research design is descriptive in
nature. The research has been conducted on customers of HDFC and ICICI Bank
within JALANDHAR. For the selection of the sample, convenient sampling method
was adopted and an attempt has been made to include all the age groups and gender of
every class.
RESEARCH INSTRUMENT
The instrument used for gathering data was questionnaire. To get further insight in to the
research problem, interview regarding their buying practices too was made. This was
done to crosscheck the authenticity of the data provide d. To supplement the primary
data and to facilitate the process of drawing inference, secondary data was collected
from published sources like magazines, journals, newspapers etc.
3.4 SAMPLE DESIGN AND SIZE
In this research project Descriptive research design is used. Judgment and Convenience
sampling method will be used to get the information about online banking. This
method is used because we are interested in exploring gender, age, or occupation
disparities in terms of online banking in the population. For conducting this re search,
a structured questionnaire is prepared and sample of 150 customers is taken from ICICI
and HDFC bank.
SAMPLING SIZE
It indicates the numbers of people to be surveyed. Though large samples give more
reliable results than small samples but due to constraint of time and money, the
sample size was restricted to 150 respondents. The respondents belong to different
income group and profession.
SAMPLING UNIT
It defines the target population that will be sampled i.e. it answers who is to be
surveyed. In this study, the sampling unit is the people of ICICI and HDFC,
Jalandhar, Punjab.

TOOLS AND TECHNIQUES OF ANALYSIS:

The data so collected will be analyzed through the application of statistical
techniques, such as bar graphs and pie charts.
3.5 DATA COLLECTION
Keeping in view the nature of requirements of the study to collect all the relevant
information regarding the extent of awareness of the customers using E-banking
facilities offered by ICICI and HDFC bank, direct personal interview method with
structured questionnaire was adopted for the collection of primary data. Secondary data
has been collected through the various internet sites by surfing on Interne t and from
the records available with the bank.
SOURCE OF DATA
Following are the methods of sources of data:
SECONDARY DATA:
• Articles on E-Banking taken from journals, magazines published from time to time.
• Through internet.
PRIMARY DATA:
Questionnaire was used to collect primary data from respondents. The questionnaire
was structured type and contained questions relating to different dimensions of e-
banking preferences among service class such as level of usage, factors influencing the
usage of e-banking services, benefits accruing to the users of e-banking services,
problems encountered. An attempt was also made to elicit reasons for its non-usage.
The questions included in the questionnaire were open-ended, dichotomous and offering
multiple choices.
NEED OF THE STUDY
• To determining growth direction of online banking service.
• Promoting E-banking service s in banking industry.
• Customer perception will be taken into consideration about the internet banking.

HYPOTHESIS
EASE 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.
FRIENDS/RELATIVES
Ho: Friends/Relatives do not influence the use of E Banking service s.
H1: Friends/Relatives do influence the use of E Banking services.
 CHAPTER-4
DATA ANALYSIS AND INTERPRETATION

DATA ANALYSIS & INTERPRETATION

 Gender

Male 114
Female 36
Total 150

120

100

80
Male; 114
60

40
Female; 36
20

0
Male Female

Interpretation: The result shows that majority of respondents i.e. 76% are males who are
using the E-banking services and 24% are the female who are using E-banking services.
Female are not using this service because they have less knowledge about the internet and
they trust face to face interaction more. So it shows that E-banking is more famous among
male.

 Age
Age Total No.
Below 20 34
21-30 40
31-40 32
41-50 27
Above 50 17
Total 150
 40
40
34
35 32

30 27

25

20 17

15

10

0
Below 20 21-30 31-40 41-50 Above 50

Interpretation: The result shows that majority of respondents i.e. 27% falls under the
category of 21-30 years and 23% falls under below 20years it shows that E-banking is mainly
famous among youngsters as they are the major users of E-banking and least comes under
above 50years.

 OCCUPATION

OCCUPATION TOTAL NO.

Government 37
Private 40
Business 48
Others 25
TOTAL 150
48
50
40
45 37
40
35
25
30
25
20
15
10
5
0
Government Private Business man Others
Interpretation: The result shows that majority of respondents that are using Ebanking are
Businessman i.e., 32% they are using E-banking services because it results in time saving.
And 27% respondents are working in private sector and 24% respondents are working in
government organizations and 17% are others which include students and housewives they
are using E-banking because it saves time and students, they have complete knowledge of
internet.

 INCOME
INCOME TOTAL NO.
Below 10,000 23
10,000-25,000 48
25,000-50,000 45
More than 50,000 34
TOTAL 150

48
45

34

23

Below 10000 10000-25000 25000-50000 Above 50000

Interpretation: The result of this study shows that 32% of the respondents who are using E-
banking fall under the income category of 10,000-25,000 and 30% falls under the income
category of 25,000 to 50,000 and 23% % falls under the income category of more than
50,000 and 15% % falls under the income category of below 10,000.

Q-1) DO YOU THINK E-BANKING SERVICES IS NECESSARY IN PRESENT

SCENARIO.?
 YES 135
NO 15
TOTAL 150

100%
90%
80%
70% 135 15
60%
50%
40%
30%
20%
10%
0%
YES NO

INTERPRITAYION: To make work easiest e-banking facility are very useful and necessary
in present scenario.

Q-2) IN WHICH BANK DO YOU YOU’RE YOUR ACCOUNT?

OPTION NO. OF RESPODENT

HDFC 39
ICICI 24
BOTH 87
TOTAL 150
 87
90

80

70

60

50 39

40
24
30

20

10

0
ICICI HDFC Both

Interpretation: According to this study majority of respondents i.e. 58% have their accounts
in both the banks HDFC and ICICI bank and 16% respondents have their account in ICICI
Bank and 26% have their account in HDFC bank so it means a large no. of respondents have
Experience of both the banks.

Q-3) WHILE OPENING UP THE ACCOUNT, WERE YOU AWARE OF EBANKING

SERVICES PROVIDED BY YOUR BANK?
OPTION NO. OF RESPONDENT
YEN 109
NO 41
 100%
90%
80%
70%
60% Yes; 109 No; 41
50%
40%
30%
20%
10%
0%
Yes No

Interpretation: According to this survey majority of respondents i.e.73% were aware about
E-banking services provided by their bank and 27% of respondents were not aware about the
E-banking services provided by their bank at the time of opening up of their account because
of lack of awareness and some are using banking services from last so many years at that
time bank was not offering E-banking service so they were not aware at that time but now
they are aware.

Q-4) ARE YOU AVAILING E-BANKING SERVICES?

Option No. of Respondent

Yes 96

No 13
 100
90
80
70
60 96
50
40
30
20 13
10
0
Yes No

Interpretation: The results show that 88% respondents who are aware of E-banking they are
availing E-banking services and 12% are not availing E-banking services yet they are aware
of E-banking the reason is that they still have faith in traditional banking.

Q-5) WHICH OF THE FOLLOWING E-BANKING SERVICES IS YOU AWARE

OF?

Options No. of Respondent

Internet Banking 49
Mobile Banking 97
Phone Banking 67
One Line Banking 12
Debit Card 102
Others 21
 120
102
100 97

80
67
60
49

40

21
20 12

0
Internet mobile Phone One Line Debit Card Others
Banking Banking Banking Banking

Interpretation: According to this study almost every customer is using more one E-banking
service and Debit Card is used by almost 95% of respondents and mobile banking is used but
89% of respondents and 61% respondents are using phone banking and only 1% are using
one line banking this shows the trend that how customers are using E-banking and among all
the E-banking products debit cards are mostly used by respondents because they are easy to
use and do not require technical or computer knowledge.

Q-6) WHAT DO YOU PREFARE WHILE CHOOSING E-BANKING SERVICES.?

OPTION NO.OF RESPONDENT

Good Services 63

Cost Charges 30

People References 40

Others 17

TOTAL 150
 Others; 17;
11%

People Good Service;

References; 40; 63; 42%
27%

Cost Charges;
30; 20%

Good Service Cost Charges People References Others

Interpretation: 63% people are prefer Good services then people references then cost
charges and last one is others. It’s means that most of the people are want good services in
the comparison of cost charges. Means in present people are not much care about service
cost.

Q-7) TO WHAT EXTENT IS YOU SATISFIED WITH YOUR BANKS’ EBANKING

SERVICES?

E- banking services TOTAL NO.

Highly satisfied (1) 56

satisfied (2) 31

Neutral (3) 4

Dissatisfied (4) 15

Highly dissatisfied (5) 3

TOTAL 109
 60 56

50

40
31
30

20
15

10
4 3
0
Highly satisfied (2) Neutral (3) Dissatisfied (4) Highly
satisfied (1) dissatisfied (5)

Interpretation: The most of the customers are really liked the facilities provided by banks as
hey strongly agree that the facilities are good for them so they like to avail the E-banking
services provided by the different banks and the result shows that 48% respondents are highly
satisfied with the e-banking services provided by their bank and 28% respondents are
satisfied with the e-banking services provided by their bank and 14% respondents are
dissatisfied with the e-banking services provided by their bank.

Respondents from HDFC and ICICI

Banks No. of Respondent
HDFC 39
ICICI 24

45
40
35
30
25
20 39
15
24
10
5
0
HDFC ICICI

Interpretation: In this we can easily say that out of the 150 respondents there are 39
respondents who are from HDFC and 24 are from ICICI. From this we can easily understand
that which bank provides good services to their customers and who are satisfied their
customers.

HDFC
E-Banking Service Total No.
Highly satisfied (1) 19
satisfied (2) 11
Neutral (3) 2
Dissatisfied (4) 6
Highly dissatisfied (5) 1
TOTAL 39

19
20
18
16
14 11
12
10
8 6
6
4 2
1
2
0
) ) )
(1 (2 3) (4
) (5
d d l( d
fie fie r a ed fie
s tis ut sfi s
ati sa Ne ati ati
ys ss iss
gh
l Di ly
d
Hi igh
H

Interpretation: From this we can analysis that most of the respondents that is 19 respondents
are satisfied with the services provided by the bank. That they like the E-banking services
provided by the by HDFC bank and the bank also easily satisfied their customers.

ICICI
E-Banking Services Total No.
Highly satisfied (1) 11
satisfied (2) 8
Neutral (3) 1
Dissatisfied (4) 2
Highly dissatisfied (5) 2
TOTAL 24
 11
12
10 8
8
6
4 2 2
1
2
0
) ) )
(1 (2 3) (4
) (5
ed ed l( ed
sfi sfi r a ed sfi
ti ti ut sfi ti
sa sa Ne ss
ati
iss
a
ly Di
igh yl d
H gh
Hi

Interpretation: From this we can analysis that most of the respondents that is 11 respondents
are satisfied with the services provided by the bank. That they like the E-banking services
provided by the by ICICI bank and the bank also easily satisfied their customers.

Q-8) WHICH OF THE FOLLOWING BENEFITS ACCRUE TO YOU, WHILE

USING E-BANKING SERVICES?

Benefit Total No.

Time Saving 56
Inexpensive 31
Easy Processing 14
Easy Fund Transfer 8
Total 109
 60

50

40

30 56

20 31

10 14
8
0
Time Saving Inexpensive Easy Processing Easy Fund Transfer

Interpretation: Most of the respondents think that the major benefit from E-banking services
is time saving facility. Because the major problem which the respondents faced is time
problem so E-banking eases their lives and save their time so they like this facility because of
this facility.

HDFC
Benefit Total No.
Time Saving 15
Inexpensive 11
Easy Processing 8
Easy Fund Transfer 5
Total 39
 Easy Fund
Transfer; 5;
13%

Easy Time Saving;

Processing; 8; 15; 38%
21%

Inexpensive;
11; 28%

Time Saving Inexpensive Easy Processing Easy Fund Transfer

Interpretation: We can analysis that the customers of HDFC really satisfied with the time
saving facility of E-banking. They thought that it’s a good for them to use the E-banking
services because it’s save their time and they can easily access the service.

ICICI
Benefits Total No.

Time Saving 12

Inexpensive 8

Easy Processing 2

Easy Fund Transfer 2

Total 24
 Easy Fund Transfer; 2; 8%

Easy Processing; 2; 8%

Time Saving
Inexpensive
Time Saving; 12; 50% Easy Processing
Easy Fund Transfer

Inexpensive; 8; 33%

Interpretation: We can easily understand that there is not at all the biggest difference
between the respondents of HDFC and ICICI they both use the E-banking services because
it’s save their time and it’s easily to handle.

Q-9) WHICH TYPE OF PROBLEM ARE YOUFACING WHILE USING E-

BANKING SERVICES.?

OPTION TOTAL NO.

More time taking in fund transfer 2

Slow speed in working 7

Critical Process 17

Not easy for non educated person 24

Others 5

Total 55
 24
25

20 17

15

10 7
5

5 2

0
More time Slow speed in Critical Process Not easy for Others
taking in fund working non educated
transfer person

Interpretation: Not easy for Non Educated person option are choose by the most of people
because in india every person have a account but they are not well educated. So, that’s why
this kind of problems are held by the most of peoples.

Q-10) YOU HAVE A OPTION TO SWITCH OVERYOUR BANK FOR USING THE
E-BANKING SERVICE. SO, DO YOU SWITCH YOUR BANK.

OPTION TOTAL NO.

HDFC 10

ICICI 14

TATAL 24
 16
14
14

12
10
10

0
HDFC ICICI

Interpretation: Only 15-20 percent people are want to switch their bank for using e-banking
service. In this figure most are the customer are related to the ICICI bank. And according to
me the only reason are behind this is N on Educated person which they are don’t know
knowledge about the E-banking processing.
 CHAPTER-5

5.1 CONCLUSIONS

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.
This reason is that in case of internet banking interpersonal interaction with customers is
seldom possible. Identification & measurement of customer’s expectations of the
internet banking services provide a frame of reference & their relate d quality
dimension. The main factors which persuade people to use online banking are comfort
& convenience & the facility which attracts them most is quality & quantity of information.
Therefore the implementation of quality initiatives should begin with defining customer’s
need & preferences & their related quality dimensions There is still a lot needed for the
banking system to make reforms and train their customers for using internet for their
banking account. Going through the survey the main problem lies that still customer have
a fear of hacking of accounts and thus do not go on for internet banking. Banks are
trying their level best by providing the best security options to the customers but then to
there is lot of factors which betrays a customer from opening an internet bank account.

Banks a re 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. If proper training should
be given to customer by the bank employs to open an account will be beneficial secondly
the website should be made friendlier from where the first time customers can
directly make and access their accounts. In future, the availability of technology to
ensure safety and privacy of e-transactions and the RBI guide lines on various aspects
of internet banking will definitely help in rapid growth of internet banking in India.
 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.
• Banks should obey the RBI norms and provide facilities as per the norms, which are not
being followed by the banks. While the customer must be given the prompt services
and the bank officer should not have any fear on mind to provide the facilities as per RBI
norms to the units going sick.
• Internet banking facility must be made available in all branches of these two Banks.
• Each section of these Banks should be computerized even in rural areas also.
• Personalized banking should be given a thrust as more and more banks are achieving
in usual services.
• Covering up the towns in rural areas with ATMs so that the people in those area s ca n
also avail better services.
• Prompt dealing with permanent customers and speedy transactions without harassing
the customers.
• Fair dealing with the customers. More contributions from the employees of the bank.
The staff should be co-operative , friendly and must be capable of understanding the
problems of the customers.
• Give proper training to customers for using i-banking
• Create a trust in mind of customers towards security of their accounts
• Provide a platform from where the customers can access different accounts at single
time without extra charge.
 FACTS AND FINDING OF THE STUDY

• 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.
• Most of the respondents who are using this facility having income lie between 10,000-
25,000. And there is no at all a huge difference between the respondents who are
having income between 25,000-50,000.
• Among the overall percentage of the customers whose having their account in the both the
bank which we have conducted in our survey should be the 58%, and they are using the
services of both the banks and the categorical division is to be 16% in ICICI and 26% in
HDFC.
• 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.
• Among those aware (which account for 150 in number) about 109 persons use e-banking
services, which is 73% of total population studied.
• E-banking constitutes services provided in terms of ATMs, Debit Card, Credit Card,
Phone Banking, Mobile Banking, Internet Banking etc, of which the first six have been
covered. Amongst these Debit Card scores the largest used service status (68%) Close on
the heels is Mobile Banking (64.66%), Phone Banking (44.66%), while One Line
banking lags behind by scoring the least ie.,0.08%.
• To find out the level of usage amongst the business class, percentage has been calculated
from the total completely filled in questionnaires and the incomplete questionnaires
were discarded. The frequency of usage of Debit card is highest followed by ATM.
• A study of the factors, influencing the usage was made by listing out various factors
such as all time availability, ease of use, nearness etc., and amongst the various
factors status symbol is ranked as the major motivating factor, followed by all time
availability, friends, ease of use and direct access in decreasing order of importance.
Quite interestingly security symbol scored the least motivating factors.
• When asked to list various benefits accruing from the usage of e-banking, time
saving received highest percentage score at 51.37% among different benefits such as
inexpensive (28.44%), easy processing (12.84%), easy fund transfer (7.3%).Quite
interestingly, easy processing feature scored more than the inexpensiveness of the e-
banking services. The other benefits accruing to the people include ready availability
of funds, removal of middlemen and no rude customer relation executives.
• Among the users, various problems that are encountered while using e- banking
services. Firstly the y highly considered Difficulty in claiming false transactions are
major reasons that create hurdles in its usage, while card misplaced and misused,
password forgetting, time consumption and internet connectivity issue also considered
seem to be the least bothering problems.
• From the non users, an attempt was made to elicit the reasons for its non usage.
most important factors which have been considered by customers who are not using e
banking services are no access to internet, mobile then hidden cost factor, followed by
dissatisfaction with traditional banking was considered as de-motivating factor, followed
closely by the fear of insecurity, then ‘botheration’ factor, which suggested their resistance
to change, which to some extent can be countered by aggressive advertisement and
utilizing other modes of awareness dissemination a s well.
• We easily from our interpretation find out that there is not at all as such
comparison between both the banks. As there are some of the services which are
equally good as the services of other bank. As the services of net banking is good in
HDFC as compare to ICICI. And if we compare the mobile banking services the n both are
at equally side. But if we compare the phone banking facility of both the banks then
ICICI provides totally satisfaction to their customers. So in findings we can’t say that
overall which bank provides the satisfactory facility to their customers only there is
some services which is better of HDFC and some are better of ICICI bank. Like out
of 109 respondents 59 respondents prefer the E-banking services of HDFC and 50
respondents prefer the services of ICICI bank. So most of the respondents considered
the services provided by HDFC bank are better in respect of ICICI bank’
SCOPE OF THE STUDY
• Area is restricted to only INDORE because due to the time constraint and not able to
visit all the branches in other cities or states.
• All the classes of the customers were taken into consideration.
• This study was covered E-Banking service sector.
• This is a realistic source directly collected from the customers of Bank.

Limitation of Study
Every research is conducted under some constraints and this research is not an
exception. Limitations of this study a re as follows:-
• As a research is based on a sample, there fore, the findings may not reveal the factual
information about the research problem, though an utmost care will be taken to select a truly
representative sample.

• There may be some bias in the responses of the respondents which cannot be ruled out
fully.

• Sudden change in the e- banking practices during the course of research can affect
the results.

• The study is limited to area s of Jalandhar only.

• The sample size of only 150 was taken from the large population for the purpose of
study, so there can be difference between results of sample from total population.

• People were reluctant to go in to details because of their busy schedules

.
• Merely asking questions and recording answers may not always elicit the actual
information sought.

• Due to continuous change in environment, what is relevant today may be irrelevant

tomorrow.
 REFERENCES

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• Anthony, R. (2004), “User Friendly E-Banking: A Survey of Online E-Banking Retail
Initiatives”, Communications of the ACM , Vol. 47, Iss. 10, pp. 99-102.
• Asghar, O. (2004), “Banking In a Cloud of Electrons”.
• Awa mleh, R. (2006), “Diffusion of Internet Banking amongst educated consumers in
a high income Non-OECD country”, Journal of Internet Banking and Commerce , Vol.
11, Iss.
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Banking and Commerce , Vol. 14, Iss. 3, pp. 1-11.
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• Laukkanen, P., Sinkkonen, S., & Laukkanen, T. (2008), “Consumer resistance to inte rnet
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articles
 Appendix
Dear Respondent,
We are conducting a research study We will appreciate your cooperation in this regard by
filling up the questionnaire carefully. I assure you that the information provided by you will
be kept confidential and will be used for academic purpose only.
Please put a tic k (v) in appropriate brackets.
Questionnaire On “Satisfaction from E-Banking Services. A comparative study of
HDFC and ICICI bank.
A. Personal Information

Name of customer _________________________________________________________.

Address:____________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___.
Phone no_________________________________________________________________.
E-mail id__________________________________________________________________.
Age: _________________________.

B. General Information

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

(a) Yes (B) No
2. From which bank you are availing these services.
(a) SBI Bank
(b) PNB Bank
(c) HDFC Bank
(d) ICICI Bank
(e) Others (Please Specify) _______________________.

3. What do you prefer while choosing E-Banking services?

(a) Good service
(b) Cost charges
(c) People References
 (d) Other (Please specify) _________________________.

4. What is the reason for selecting this particular bank.?

(a) Good brand
(b) Good Service
(c) Other References
(d) Other (Please specify) _________________________.

5. Which type of E-Banking services you want to use.?

(a) Transfer funds online
(b) Online purchase and payment.
(c) Regular checking of bank statement.
(d) Request any card or cheque book services.
(e) Other (Please specify) __________________________.

6. Are you satisfied with your E-Banking Service?

(a) Yes (b) No

7. Give rating of your E-Banking Services.

(a) Excellent
(b) Very good
(c) Good
(d) Average
(e) Below average.

8. Which type of problem are you facing while using E-banking services.
(a) More time taking in fund transfer.
(b) Slow speed in working.
(c) Critical Process.
(d) Not easy for Non educated persons.
(e) Other (Please specify) ________________________.

9. What your bank is doing to solve out these problems.

 ________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
__________________________.

10. If given any option to switch, which bank you prefer for using E-Banking service &
Why.?
(a) SBI Bank
(b) PNB Bank
(c) HDFC Bank
(d) ICICI Bank
(e) Other (Please specify) ___________________________.

C. Suggestion for Improvement.

_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
__.

Signature

Dated:

Thank you very much for your kind support and co-operation.

MASTER SHEET

Question No
Name of Respondent
1 2 3 4 5 6 7 8 9 10
Niharika Singh A D A B B A B D A C
Govind Singh Ji A D A E C A C B E E
Himanshu Shekhawat A D A C C B D B A C
Sandeep Malar A C B C D B B C A C
Padam Singh Rathore A A A D A A A D E C
Rajmal janwa A D A A A A B C A A
Koko Jindal A C A B C A C D A E
 Deepak Roshan A C A A C A A B C D
Rajendra Singh A D A B A A B D C D
Indrajeet Gulati A A C B C A B B A C
Sunil Sharma A D A A A A B C A A
Eti Khatri A D A B A A B D A A
Rajesh Garg A A A B C A B B A C
Sakshi Sharma A D A C C B D B A C
K.K. Rajoria A D A A C A C D A C
Mousami Bhadhoupadhay A D A E C A B E A E
Ghanshayam Agarwal A D A B A A C A D D
Om Prakash Bishnoi A A A D A A A D E C
Pratima Goyal A D A A A A B D E E
Amar Bhardwaj A B A B D A C D E A
Gaurav Khandelwal A C A A C A A B C D
Prachi Binaikia A D A B A A C A D D
Vinod Kumar Ji A D A C C A C C A B
Soniya Jethwani A A C B C A B B A C
M.L. Dabra A D A B A A B D E A
Tulsi Ram Ji A D A E C A B E A E
Phadmashiri Verma A D A C C A C C A B
Manish Rajoria A B A B D A C D E A
Trilok Chand Gwalani A D A B A A B D A A
Anita Sharma A D A B A A B D E A
Gaurav Tekchandani A C A B C A C D A E
Neha Sarda A D A A C A C D A C
Manish Bable A D A B B A B D A C