PROJECT WORK

(SUBMITTED FOR THE DEGREE OF B.COM HONOURS IN ACCOUNTING AND

FINANCE UNDER THE UNIVERSITY OF CULCUTTA)

TITLE OF THE PROJECT

POPULARITY OF ONLINE BANKING IN INDIA

SUBMITTED BY
NAME OF THE CANDIDATE: NEHA KUMARI MAHATO

REGISTRATION NO.:047-1211-0959-17

C.U. ROLL NO.:171047-11-0229

COLLEGE ROLL NO. : 1230

COLLEGE NAME: SIVANATH SASTRI COLLEGE

SUPERVISED BY

NAME OF THE SUPERVISOR:PROF. DEBANJAN LAHA

NAME OF THE COLLEGE: SIVANATH SASTRI COLLEGE

MONTH AND YEAR OF SUBMISSION:

October 2020
ACKNOWLEDGEMENT
It gives me immense pleasure in acknowledging the valuable &co-operation assistance extended
to me by the various individuals who have helped me successfully in completing this project.

First of all I would like to show my gratitude to Principal ma’am DR. RUNA BISWAS and my
guide Professor DEBANJAN LAHA for their assistance ,encouragement and support on the
topic “ ONLINE BANKING ”.

I would like to express my gratitude to the employees working in BANK for helping me in my
survey to complete my project.

I would like to thank my parents, friends & colleagues who have supported me during the
making of this research report. The information provided by them has helped me gain practical
understanding of the subject.

I would like to thank the CULCUTTA UNIVERSITY for giving me the opportunity to carry out
the research.

It is the encouragement of all these people that has helped me proceed towards achieving my
goals.

STUDENT’ S NAME:

NEHA KUMARI
MAHATO
 1. INTRODUCTION

ONLINE BANKING
Is a new trend that allows customers to conduct financial transactions on a secure website
operated by their retail virtual bank, credit union or building society?

1.1BACKGROUND OF THE STUDY:

Home online banking services were known as the distance of banking services over electronic
media starting in the early 1980s. In the late 1980's the new term online became popular and was
used as a keyboard and monitor using phone lines to access banking systems. Using the keypad
on the keyboard it sent tones down the phone line with instruction to the bank. New York was
the first to start online service in 1981. Citibank, Chase Manhattan, Chemical and Manufacturers
Hanover was the city's four major banks that started offering home banking services using video
tax system. Due to commercial failure of the videotext system banking it never became popular
in the U.S.

 Features of Online Banking

 Investments
 Loans
 Payments
 Funds Transfers
 Viewing Transactions
 Downloading Statements

 Security
Although many of us may think that online banking uses the same security as shopping online or
like face book it does not. Online banking uses two different security methods PIN? TAN and
Signature based online banking

 PIN/TAN

 PIN represents password for login

 TAN represents a onetime password used to authenticate transactions

 Signature Based Online Banking

 All transactions are signed and encrypted digitally

 Keys for the signature generation and encryption can be stored on smartcards or any
memory medium depending on the concrete implementation
 1.2LITERATURE REVIEW
A literature review of the studies is given below:

 Kwan and Eisenbeis (1997) observed that assets quality is commonly used as a risk
indicator for financial institutions, which also determines the reliability of capital ratios.
Their study indicated that financial capitalization affects the operation of financial
institution. More the capital, higher is the efficiency.
 Prasuna (2003) analyzed the performance of 65 Indian banks for the year 2003-04 and
found that better services quality, innovative products and better bargains were
beneficial because of the prevailing tough competition.
 Sarker (2005) examined the model for regulation and supervision of Islamic banks by
Central bank in Bangladesh. The study enabled the regulators to get a Shariah
benchmark to supervise and inspect Islamic bank and financial institution from Islamic
perspective.
 Bodla and Verma (2006) assessed the performance of SBI and ICICI bank through the
model for the period 2004-05 and found out that although liquidity position of both the
banks did not differ significantly, ICICI bank has outperformed SBI in terms of assets
quality, earnings ability and management efficiency.
 Chaudhury and Singh (2012) analyzed the impact of the financial reforms on the
soundness of Indian banking through its impact on the assets quality. The study
identified the key players as risk management, NPA levels, effective cost management
and financial inclusion.

The survey of the existing literature review that framework is an established model for
analyzing and comparing the performance of banks and the present study is an attempt in
this direction and therefore, aims to enrich the literature of comparative study of financial
performance of banks.
 1.3OBJECTIVES OF THE STUDY
The prepared project is based on the following objectives:

 To study the financial performance of SBI and ICICI banks.

 To know and compare overall satisfaction of customers regarding banking services.
 To study the market position of both the banks.
 To study the customers relationship with bank.
 To study how far the customers are aware about online services and other services
provided by banks.

1.4 RESEARCH METHODOLOGY

SAMPLE SIZE:

50 respondents are selected randomly from Kolkata city.

The selection of sample size was based on the following criteria:

 Respondent are having their account with SBI and ICICI bank.
 Personal interview
 Direct survey method
 Random sampling method is used
 Structured questionnaire-open-ended, closed-ended

1.5LIMITATION OF THE STUDY

 The study is limited to the comparison of SBI and ICICI online banking services.
 The study is conducted and information is collected through questionnaire.
 The study is limited to a specify area or region of Kolkata.
 Limited to the age group 20 to 30, who use online banking services.
 The sample size is limited to 50 respondents, who have their accounts with SBI &
ICICI bank.
 2. CONCEPTUAL FRAMEWORK

2.1PROFILE OF STATE BANK OF INDIA (SBI)

Introduction
State bank of India (SBI) is an Indian multinational public sector banking and financial services

company. It is a government owned corporation with its headquarters in Mumbai Maharashtra.

On 1st April, 2018, State bank of India, which is India’s largest Bank merged with five of its

Associate Banks (State Bank of Bikaner & Raipur, Sate Bank of Travancore) and Mahila Bank

with itself. This is the first ever large scale consolidation in the Indian Banking Industry. With

the merger, State Bank of India will enter the league of top 50 global banks with a balance sheet

size of Rs.33 trillion, 2,57,252 employees, 420 million customers, and more than 24,000

branches and 59,0000 ATMs. SBI’s market share will increase to 23 percent from 17 percent. It

has 198 offices in 37 countries; 301 correspondents in 72 countries. The company is ranked

236th on the Fortune Global 500 list of the world’s biggest corporations as of 2019. SIB trade as

NSE; SBIN, BSE; 500112, LSE; SBID, BSE SENSEX constituent.

SBI provided various products to their customer such as consumer banking, finance and

insurance, investment banking, mortgage loan, private banking, private equity, savings,

securities, assets management, wealth management, credit cards.

SUBSIDIARIES OF SBI

The state Bank Group includes a network of 8 banking subsidiaries and several non banking

subsidiaries offering merchant banking services, fund management, factoring services, primary

dealership in government securities, credit cards and insurance.

The 8 banking subsidiaries are:

Diagram of subsidiaries of SBI

STATE BANK OF
BIKANER &
JAIPUR(SBBJ)

STATE BANK OF STATE BANK OF

TRAVANCORE(SBT) HYDERABAD

STAE BANK OF SUBSIDIARIES STATE BANK OF

SAURASHTRA(SBS) OF SBI INDIA(SBI)

STAE BANK STATE BANK OF

PATIALA(SBP) INDORE(SBI

STATE BANK OF
MYSORE(SBM)

2.2 PROFILE OF INDUSTRIAL CREDIT & INVESTMENT

CORPORATION OF India BANK (ICICI)

INTRODUCTION
ICICI Bank (Industrial Credit & Investment Corporation of India) is an Indian

multinational banking and financial services company headquartered in Mumbai, Maharashtra,

India with its registered office in Vadodara. In 2018, it was the second largest bank in India in
items of assets and third in term of market capitalization. It offers a wide range of banking

product and financial services for corporate and retail customers through a variety of delivery

channels and specialized subsidiaries in the areas of investment banking, life, non –life

insurance, venture capital and assets management. The bank has a network of 5, 275 branches

and 15, 589 ATMs in India and has a presence in 17 countries including India.

The bank has subsidiaries in the United Kingdom and Canada branches in United States,

Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar, Oman, Dubai international finance centre,

china and South Africa and representative office in United Arab Emirates, Bangladesh, Malaysia

and Indonesia. The company’s UK subsidiary has also established branches in Belgium and

Germany.

ICICI Bank is India’s largest private sector bank with total consolidated assets of RS. 9,

64, 459.15 crore (US $140 billion) at March 31, 2019 & profit after tax of RS. 3, 363 crore (US $

33.63 billion) for the year ended March 31, 2019. ICICI Bank currently has a network of 5, 275

branches & 15, 589 ATMs across India.

ICICI provide various products to their customers like credit cards, consumer banking,

finance & insurance, investments banking, mortgage loans, private banking wealth management,

personal loans, payments online solutions.

Total assets & total equity of ICICI IN 2019:

Total assets US$ 140 billion(2019)

Total equity US$ 94.4 billion(2019)

 2.3 NATIONAL & INTERNATIONAL SCENARIO

BRIEF HISTORY OF SBI

The bank traces its ancestry to British India though the imperial Bank of India to the
founding in 1806 of the Bank of Calcutta making it the oldest commercial bank in the Indian
subcontinent Bank of Madras merged into the other two “PRESIDENCY BANK” in British
India, Bank of Calcutta and Bank of Bombay, to form the imperial Bank of India which in turn
became the State Bank of India in 1955. Government of India owned the imperial bank of India
in 1955, Reserve Bank of India (India’s central Bank) taking a 60% stake, and renamed it the
State Bank of India. In 2008 the government took over the stake held by the Reserve Bank of
India. The RBI has now clarified that State Bank of Indore units will begin functioning as State
Bank of India branches a day earlier. “this is due to the fact that the order of Acquisition will be
effective on and from the close of business on august 26,2010 as announced earlier”, RBI said
June 29,2007; the government of India acquired the entire Reserve Bank of India(RBI)
shareholding in State Bank of India(SIB), consisting of over314 million equity shares at a total
amount of over 355 billion rupees, State Bank of India is a banking behemoth and has 20%
market share in deposits and loans among Indian commercial banks.

BRIEF HISTORY OF ICICI

ICICI Bank (Industrial Credit & Investment Corporation of India) was originally
promoted in 1994 by ICICI limited, an India financial institution, & was it’s wholly- owned
subsidiary. ICICI’s shareholding in ICICI bank was reduced to 46% through a public offering of
shares in India in 1998, followed by an equity offering in the form of American depositary
Receipts on the NYSE in 2000. ICICI Bank acquired the bank of Madura limited in an all stock
deal in 2001-02. ICICI was formed in 1955 at the initiative of the World Bank, the Government
of India & representatives of Indian industry. The principal objective was to create a
development financial institution for providing medium-term & long-term project financial
institution for providing medium-term & long-term project financing to Indian business.

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 & affiliates like ICICI
Bank. In 1999, ICICI become the first Indian company & the first bank of 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 & ICICI Bank formed the view that the merger of ICICI with
ICICI bank would be the optional strategic alternative for both entities and would create the
optional legal structure for the ICICI group’s universal banking strategy. 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 & ICICI
Capital services limited with ICICI by Bank. The merger was approved by shareholders of ICICI
& ICICI bank in January 2002, by the high court of Gujarat at Ahmadabad in March 2002.
Consequent to the merger, the ICICI group’s financing & banking operations; both wholesale &
retail have been integrated in a single entity.

ONLINE BANKING
Online Banking solutions cater to the various payments fund-transfers, e-Tendering, e-
Auction & bulk payments related requirements of the government/PSUs/large & medium
corporate as well for retail online banking(ROB) customers. The corporate internet banking
(CINB) is well suited to small, medium, & large corporate. IT has also been immensely
successful in establishing transaction with government Treasury & Accounts Departments.
Online collection of fees/funds for institution, corporate & government departments is being
facilitated through multi option Payment System (MOPS) & State Bank Collect. Merchant-
acquisition is facilitated through aggregators.

Some of the new features launched in Online Banking during the FY2020 are as follows:

a. Online PAN Updating

b. Online OD for e-commerce purchase (flip kart etc.)
c. Submission of stock statement through CINB
d. Direct integration with 102 merchants/government departments
e. NPS online account opening
f. Personalized image based Gift Card Issuance Facility
g. Online locker enquiry
h. Mobile number registration in CBS through Contact Center

3. PRESENTATION OF DATA, ANALYSIS AND FINDINGS

ANALYSIS OF SURVEY ON QUALITY OF ONLINE BANKING SERVICES
OF SBI & ICICI:
INTRODUCTION:

The research project has set up a 25 question questionnaires so as to analysis respondent’s

perception towards quality of online banking services in India. The questionnaire is limited to
banking companies i.e. State Bank of India (SBI) and Industrial Credit & investment Corporation
Of India Bank (ICICI). A total random sample of 50 respondents (25 customers & 25 employees
of the bank) is taken into consideration for data analysis and a graphical representation is done
through pie charts and bar graph.

3. (i) RESPONSES COLLECTED FROM CUSTOMERS:

3.1Age Group Wise Distribution of Respondents:

The age of the respondents who fill the questionnaires is summarized as below:

TABLE 3.1

AGE FREQUENCY PERCENTAGE%

20-25 9 36
25-30 11 44
30-35 2 8
ABOVE 35 3 12
Source: compiled by surveyor

GRAPH 3.1

50 44
PERCENTAGE (%)

40 36

30

20
12
8
10

0
20-25 25-30 30-35 ABOVE 35
AGE
As per Graph 3.1 & Table 3.1 about 44% of the respondents belong to the age group of 25-30,
hence prefer online services, 36% belongs to 20-25 age group, 12% from above 35 & only 8%
from 30-35 age group.
3.2 Education Qualification Distribution of Respondents :
The education qualification of the respondents is summarized below:

TABLE 3.2

QUALIFICATION FREQAUENCY PERCENTAGE5

SSC 2 8
Under graduate 2 8
Post graduate 21 84
No education 0 0
Source: Compiled by surveyor

GRAPH 3.2

0% 8%
12%
SSC
UNDER GRADUATE
POST GRADUATE
NO EDUCATION

80%

As per Graph 3.2 & Table 3.2 the respondents who have filed the questionnaires majority from
post graduate i.e. 805, after which 12% is under graduate & 85 is pursuing 12 Th (SSC).
3.3 Accounts on Which Bank:
The question was asked to the respondents about “which bank account they have?” & the reply
for respondents is summarized as below:

TABLE 3.3

FRQUENCY PERCENTAGE%
SBI 10 42
ICICI 0 38
OTHER 6 20
Source: Compiled by surveyor

GRAPH 3.3

20%
SBI
42%
ICICI
OTHERS
38%

Graph 3.3 & Table 3.3 implies that 42% having their account with SBI bank, 38% with ICICI
bank & 20% with other.
3.4 Who Use Online Banking? :
The question was asked to the respondents about “who use online banking most and frequently?”
&the reply of respondents is summarized as below:

TABLE 3.4

USER FREQUENCY PERCENTAGE (%)

Businessman 13 52
Students 4 16
Professional/ Expert 5 20
Employees 2 10
Others 1 2
Source: Compiled by surveyor

GRAPH 3.4

2
10%
BUSINESSMAN
STUDENTS
20%
52% PROFESSIONAL/ EXPERT
EMPLOYEES
OTHER
16%

Graph 3.4 & Table 3.4 implies who use online banking most. It says mostly businessman use
online banking .i.e. 52%, 20%, is used by professional or expert, 16% by students, 10% by
employees and the rest one not use online banking mostly .i.e. 2%.
3.5 How Many Knows Online banking:
The question was asked to the respondents about “do you know online banking?” reply of
respondents is summarized as below:

TABLE 3.5

FREQUENCY PERCENTAGE (%)

YES 23 92
NO 2 8
Source: Compiled by surveyor

GRAPH 3.5

8%

YES
NO

92%

Graph 3.5 & Table 3.5 reveals that how many people know about online banking in today’s
economy. 92% respondent knows about what is online banking and 8% don’t know about online
banking even after the demonetarization.
3.6Bank Branch Visit
The question was asked to the respondents about “how frequently do you visit your bank
branch?” and they reply of respondents is summarized below:

TABLE 3.6

FREQUENCY PERCENTAGE (%)

Regularly 2 8
Weekly 0 0
Monthly 11 44
Quarterly 9 36
Yearly 3 12
Source: Compiled by surveyor

GRAPH 3.6

12% 8% 0%

REGULARLY
WEEKLY
MONTHLY
QUARTERLY
36% 44%
YEARLY

Graph 3.6 & Table 3.6 reveals that how frequently customer visits their bank branch. 44%
respondent visit monthly and 36% respondent visit quarterly. Only 8% respondents visit
regularly and 0% weekly.
3.7Aware About Online Banking:
The question was asked to respondents about “how do you know about online banking?” and the
reply is summarized below:

TABLE 3.7

FREQUENCY PERCENTAGE (%)

Newspaper 4 17
Advertisement 14 58
Friends 3 12
Bank 3 9
Other 1 4
Source: Compiled by surveyor

GRAPH 3.7

4%
9% 17%

NEWSPAPER
12% ADVERTISEMENT
FRIENDS
BANK
OTHER

58%

Graph 3.7 & Table 3.7 implies that how people get aware about online banking. 58% people are
getting aware from advertisement.17% from newspaper, 12% from friends, 9% from bank
employees and remaining 4% from other source.
3.8Reasons for choosing Online Banking Services:
The question was asked to respondents about “what were yours reasons for choosing online
banking services? and the reply of respondents is summarized below:

TABLE 3.8

FREQUENCY PERCENTAGE (%)

Save time 7 28
Convenience 7 28
24 hours access to account 11 44
Source: Compiled by surveyor

GRAPH 3.8

28%
SAVE TIME
44%
CONVENIENCE
24 HOURS ACCESS TO ACCOUNT
28%

Graph 3.8 & Table 3.8 implies the reasons why people choose online banking services. 44%
people use online services because it is 24 hours access to account. 28% use because it save
times and convenience.
3.9Often Use on Online Services:
The question was asked to respondents about “how often you use online services?” and the reply
of respondents is summarized below:

TABLE 3.9

FREQUENCY PERCENTAGE (%)

Daily 6 24
Weekly 5 20
Monthly 13 52
Never 1 4
Source: Compiled by surveyor

GRAPH 3.9

4%
24%
DAILY
WEEKLY
MONTHLY
52%
NEVER
20%

Graph 3.9 & Table 3.9 says that how often people use online banking services. 52% respondent
use monthly and 24% respondents use daily. Only 4% never used online services.
3.10 Mostly Used Online Features:
The question was asked to respondents about “which online features do you use regularly?” and
the reply of respondents is summarized below:

TABLE 3.10

FRQUENCY PERCENTAGE (%)

Transfer funds 10 40
Pay bills 10 40
Balance inquire 2 8
Other 3 12
Source: Compiled by surveyor

GRAPH 3.10

12%
8%
TRANSFER FUNDS
40%
PAY BILLS
BALANCE INQUIRE
OTHERS
40%

Graph 3.10 & Table 3.10 reveals that which online features are used mostly by the people. 40%
people use transfer of funds between accounts features and 40% used pay bill features. Only 8%
used balance inquire features and 12% used other.
3.11 Banks Services:
The question was asked to respondents about “which banks gives you proper services?” and the
reply of respondents is summarized below:

TABLE 3.11

FREQUENCY PERCENTAGE (%)

SBI 18 72
ICICI 5 20
Other 2 8

GRAPH 3.11

8%

20% SBI
ICICI
OTHERS
72%

Graph 3.11 & Table 3.11 implies that which bank provide better & proper services to their
customer in comparison of SBI & ICICI. 72% respondent says SBI provide proper services and
20% says ICICI. Only 8% respondents say other 8% respondents say other than SBI & ICICI
give proper services.
3.12 Flexibility in Online Banking:
The question was asked to respondents about “which banks gives you a more flexibility in online
banking?” and the reply of respondents is summarized below:

TABLE 3.12

FREQUENCY PERCENTAGE (%)

SBI 12 48
ICICI 4 4
Both 7 28
Other 5 20
Source: Compiled by surveyor

GRAPH 3.12

20%
SBI
ICICI
48%
Both
Other
28%
4%

Graph 3.12 & Table 3.12 implies that which bank give more flexibility in online banking. 48%
respondent says SBI give more flexibility in online services, 28% says both SBI & ICICI bank
give flexibility in online services. Only 4% say ICICI give flexibility in online services and 20%
says other banks.
3.13 Online Banking Transaction:
The question was asked to respondents about “which kind of online banking transaction you
prefer?” and the reply of respondents is summarized below:

TABLE 3.13

FREQUENCY PERCENTAGE (%)

NEFT 12 50
RTGS 10 42
ECS 3 8
Source: Compiled by surveyor

GRAPH 3.13

8%

NEFT
50% RTGS
42%
ECS

Graph 3.13 & Table 3.13 reveals that which kind of online banking transaction is mostly
preferred by customer. 50% use NEFT (national electronic funds transfer). 42% use RTGS (real-
time gross settlement) & 8% ECS (electronic clearing services).
3.14 Trusts on Online Banking Services Security:
The question was asked to respondents about “do you trust the security of online banking
services?” and the reply of respondents is summarized below:

TABLE 3.14

FRQUENCY PERCENTAGE (%)

Completely 10 40
Strongly 4 16
Maybe 11 44
Not at all 0 0

GRAPH 3.14

0%

40% completely
44% strongly
maybe
not at all

16%

Graph 3.14 & Table 3.14 reveals that which kind of online banking transaction is mostly
preferred by customer. 50% use NEFT (national electronic funds transfer). 42% use RTGS (real-
time gross settlement) & 8% ECS (electronic clearing services).
3.15 Mobile Banking & Mobile Wallet:
The question was asked to respondents about “which kind of online banking transaction you
prefer?” and the reply of respondents is summarized below:

TABLE 3.15

FREQUENCY PERCENTAGE (%)

Mobile banking 12 48
Mobile wallet 1 4
Both 9 36
None of these 3 12

GRAPH 3.15

12%

MOBILE BANKING
48% MOBILE WALLET
BOTH
36% NONE OF THESE

4%

Graph 3.15 & Table 3.15 reveals that 48% people use or prefer mobile banking than mobile
wallet i.e. 4%, 36% people prefer both mobile banking & mobile wallet & only 12% people
neither use mobile banking nor mobile wallet.
3.16 Disadvantages of Online Banking:
The question was asked to respondents about “which kind of online banking transaction you
prefer?” and the reply of respondents is summarized below:

TABLE 3.16

FREQUENCY PERCENTAGE (%)

No disadvantages 3 12
Difficult in using 4 16
Limited services 9 36
Security concern 14 56
Source: Compiled by surveyor

GRAPH 3.16
DISADVANTAGES

SECURITY CONCERN

LIMITED SERVICES

DIFFICULT IN USING

NO DISADVANTAGES

0% 10% 20% 30% 40% 50% 60%

PERCENTAGE (%)

Series 3

Graph 3.16 & Table 3.16 implies the disadvantages of online banking 56% respondents say
online services security, 36% limited services, 16% respondents face difficulty in using & 12%
says no disadvantage in online banking.
3.17 Unnecessary Charges:
The question was asked to respondents about “which kind of online banking transaction you
prefer?” and the reply of respondents is summarized below:

TABLE 3.17

FREQUENCY PERCENTAGE (%)

Yes 11 44
No 8 32
Maybe 6 24
Source: Compiled by surveyor

GRAPH 3.17

24%
YES
44%
NO
MAYBE

32%

Graph 3.17 & Table 3.17 implies that is their bank charge unnecessary amount or deduction for
not maintaining minimum balance in their account. 44% respondents say yes, 32% say no &
24% respondents don’t know about it.
3. (ii) RESPONSES COLLECTED FROM EMPLOYEES

3.18 Age Group of The Respondents:

The age of the employees (respondents) who fill the questionnaire as summarized below:

TABLE 3.18

AGE FREQUENCY PERCENTAGE (%)

25-30 8 33
30-35 15 63
35-40 2 8
Source: Compiled by surveyor

GRAPH 3.18
AGE GROUP

35-40

30-35

25-30

0 10 20 30 40 50 60 70

PERCENTAGE (%)
As per Graph 3.18 & Table 3.18 about 63% of the respondents belong to the age group of 25 -30.
Who fill the questionnaire. 33% belongs to age group of 20-25. 8% belong to 30-35 age groups.
3.19 Post of The respondents:
The post of the employees who fill the questionnaire is summarized below:

TABLE 3.19

POST FREQUENCY PERCENTAGE (%)

Clerk 8 32
PO 7 28
SO 3 12
Manager 7 28
Source: Compiled by surveyor

GRAPH 3.19

28%
32% CLERK
PO
SO
12% MANAGER

28%

As per Graph 3.19 & Table 3.19 the respondents who have filled the questionnaire majority from
clerk post i.e. 32%, 28% from PO level, 28% are manager & 12% are from SO level.
3.20 Visit Bank Website Per Day:
The question was asked to respondents (employees of the bank) about “approximately how many
people visit your bank website per day?” and the reply of respondents is summarized below:

TABLE 3.20

FREQUENCY PERCENTAGE (%)

Less than 10000 4 17
10000 to 50000 9 35
Above 50000 12 50
Source: compiled by surveyor

GRAPH 3.20

17%

LESS THAN 10000

49% 10000 TO 50000
ABOVE 50000
34%

Graph 3.20 & Table 3.20 implies that how many customers visit their bank website per day. 50%
employees says above 50000 customer visit their bank website for any inquires, 33% says 10000
to 50000 customer visit their website & only 17% employees say less than 10000 customer visit
their website.
3.21 Update on Website:
The question was asked to respondents (employees of the bank) about “how frequently do you
update your website?” and the reply of respondents is summarized below:

TABLE 3.21

FREQUENCY PERCENTAGE (%)

Daily 11 44
Weekly 7 28
Monthly 3 12
More than ones in a month 4 16
Source: Compiled by surveyor

GRAPH 3.21

16%
DAILY

WEEKLY
12% 44%
MONTHLY

MORE THAN ONES IN

28% A YEAR

Graph 3.21 & Table 3.21 reveals that how frequently the banks update their website. 44%
employees say they daily update their website & 16% employees say they do more than ones in a
month.
3.22 Reason of Introducing Online Banking:
The question was asked to respondents (employees of the bank) about “how frequently do you
update your website?” and the reply of respondents is summarized below:

TABLE3.22

FREQUENCY PERCENTAGE (%)

Competing foreign bank 0 0
Man power shortage 1 4
Qualitative customer services 6 16
Faster transaction and time saving 20 80
Source: Compiled by surveyor

GRAPH 3.22

0%

4% 16% COMPETING FOREIGN

BANK
MAN POWER
SHORTAGE
QUALITATIVE
CUSTOMER SERVICES
FASTER TRANSACTION
80% AND TIME SAVING

Graph 3.22 & Table 3.22 implies that what was the reason behind introducing online/ net
banking, 80% says online banking is gave faster transaction & save time. 0% means no
employees think that online banking is introduce for competing with foreign banks.
3.23 Aware About Bank Location on Net:
The question was asked to respondents about “which kind of online banking transaction you
prefer?” and the reply of respondents is summarized below:

TABLE 3.23

FRQUENCY PERCENTAGE (%)

Newspaper 1 4
Media 3 12
Bank publication 3 13
SMS/ mail notification 15 63
Other 2 8
Source: Compiled by surveyor

GRAPH 3.23

4%

8%
12%
NEWSPER
MEDIA
13%
BANK PUBLICATION
SMS/ MAIL NOTIFICATION

63% OTHER

Graph 3.23 & Table 3.23 implies that how banks make the customer aware about their location
on the net. 63% banks make the customer aware by SMS/ mail notification, 12% by media, 13%
by bank publication and only 4% by newspaper.
3.24 Difficulties Faced By Employees to Work With E-Banking:
The question was asked to respondents (employees of the bank) about “what are the difficulties
faced by you to worked?” and the reply of respondents are summarized below:

TABLE 3.24

FRQUENCY PERCENTAGE (%)

Lack of knowledge 7 28
Resistance to change 3 12
Lack of proper training 5 20
Problem of security 3 12
No problem 7 28
Source: Compiled by surveyor

GRAPH 3.24

LACK OF KNOWLEDGE
28% 28%
RESISTANCE TO CHANGE
LACK OF PROPER TRAINING
PROBLEM OF SECURITY
12% 12%
NO PROBLEM
20%

Graph 3.24 & Table 3.24 implies that what the difficulties faced by the employees to work with
e-banking or channel 28% employees say there is no problems to work with e-banking at the
same 28% employees say it difficult to work because of lack of knowledge. 12% resistance to
change, 12% face problem of security & 20% face lack of proper training.
3.25 Benefits to Work With E-Banking:
The question was asked to respondents (employees of the bank) about “what is the benefit with
e-banking?” and the reply of respondents is summarized below:

TABLE 3.25

FREQUENCY PERCENTAGE (%)

Ease to operate 11 44
Improve services quality 15 60
Save time 24 96
Minimize the cost of transaction 9 36
Source: Compiled by surveyor

GRAPH 3.25

MINIMIZE THE COST OF TRANSACTION

BENEFITS

SAVE TIME

IMPROVE SERVICE QUALITY

EASE TO OPERATE

0 20 40 60 80 100
PERCENTAGE (%)
Graph 3.25 & Table 3.25 implies the benefit that employees get to work with electronic banking.
96% employees says it save time, 60% says it improve service quality, 44% says it ease to
operate & 36% says it minimize the cost.
3.26 How Long Has Been The Bank Provide Internet Services:
The question was asked to respondents (employees of the bank) about “how long has your bank
been providing internet banking to customer?” and the replies of respondents are summarized
below:

TABLE 3.26

FREQUENCY PERCENTAGE (%)

Less than a year 2 18
1 to 5 years 7 28
More than 5 years 16 64
Source: Compiled by surveyor

GRAPH 3.26

8%

LESS THAN A YEAR

28%
1 TO 5 YEARS
MORE THAN 5 YEARS
64%

Graph 3.26 & Table 3.26 implies how long has been the bank providing internet banking and
services to customer. 64% employees say more than 5 years. And 8% says less than a year.
3.27 Types of Complaints Register per Month Related to E-Banking:
The question was asked to respondents (employees of the bank) about “what are the complaint
register per month from e-banking customer?” and the reply of respondents are summarized
below:

TABLE 3.27

FREQUENCY PERCENTAGE (%)

Delay in banking 10 40
High cost of services charge 7 28
Lack of attention of bank 4 16
employee
Other 4 16
Source: Compiled by surveyor

GRAPH 3.27

DELAY IN BANKING
16%
HIGH COST OF SERVICES
40% CHARGES
16%
LACK OF ATTENTION OF BANK
EMPLOYEE
OTHER
28%

Graph 3.27 & Table 3.27 reveals that 40% complaints are register for delaying in banking
function, 28% for charging high service cost, 16% for lack of attention of banks employees on
complaint placed by customer & 16% for other complaints related to e-banking.
3.28 Is E-Banking Beneficial for Banks? :
The question was asked to respondents (employees of the bank) about “why is e-banking
beneficial for the bank?” and the reply of respondents is summarized below:

TABLE 3.28

FRQUENCY PERCENTAGE (%)

Gaining customer royalty 4 16
Market share & strength of bank 6 24
Vision of the future 13 52
Other 2 8
Source: Compiled by surveyor

GRAPH 3.28

8% 16% GAINING CUSTOMER

ROYALTY
MARKET SHARE &
STRENGTH OF BANK
24% VISION OF THE FUTURE
52%
OTHER

Graph 3.28 & Table 3.28 implies that why is e-banking beneficial for the banks. The respondents
say 52% because for vision of the future and 8% for the other benefits than 24% the market
share, 16% strength of bank and gaining customer royalty.
3.29 Number of Complaints Received Related to Online services:
The question was asked to respondents (employees of the bank) about “how may complaints
received regarding the online banking services per month?” and the reply of respondents is
summarized below:

TABLE 3.29

FREQUENCY PERCENTAGE (%)

50 7 28
100 2 8
More than 100 13 52
No complaints 3 12
Source: Compiled by surveyor

GRAPH 3.29

12%
28%
50
100
MORE THAN 100
8% NO COMPLAINTS
52%

Graph 3.29 & Table 3.29 implies that more than 100 complaints received regarding the online
banking services i.e. 52%. 12% employees say no complaint received.
4. CONCLUSION AND RECOMMENDATIONS

The project report focuses on the two major banks sector that is STATE BANK OF INDIA (SBI)
and INDUSTRIAL CREDIT & INVESTMENT CORPORATION OF INDIA BANK (ICICI).
The research project has covered the level and quality of online banking services provided by the
ICICI and SBI bank to its customers. It includes the research on the customers’ expectations and
employees thinking & requirements of online banking services of the bank. The research is
basically done on the comparative analysis of online banking services of ICICI and SBI bank. It
is done to know that which bank is better in providing the online banking services. I have
reviewed various literatures on the net pertaining to the SBI & ICICI bank. Through the data
analysis it was found that all over the e- banking services of SBI bank is the best as compared to
ICICI bank. The SBI bank has more customer satisfaction than the other banks. Through a small
sample size also it was revealed and proved that the public sector bank that is SBI bank is at a
developing and progressing side than the ICICI bank. The customers were more positive in their
approach making this kind of report created enthusiasm and interest in this topic. The research
project has added the following major observations below.

 CONCLUSION:

It is observed from the research that:

1. Most of the peoples are aware of online banking services approx 51% of Indians use
online banking channels.
2. Most of the customers ask for the advice from the others & bankers before opening an
online account.
3. 26% of Indian customers prefer to access services via their bank’s website, and the same
number would prefer to use a mobile app rather than talk to a human agent.
4. 92% peoples think that online banking services are the best way for transferring the
money from one to another etc.
5. 82% people are ready to take the advantages of online banking services provided by SBI
bank.
6. According to my knowledge and perception maximum old age customers found SBI
more reliable bank as a public sector bank where as mostly youngsters have interest in
ICICI bank.
7. More banks are connecting to the software companies to run the e-banking services. In
these services SBI bank is in the top in proving the services.
8. The services used by most of the customers are checking the current balance of their
account, order a cheque book, and pay bills, online trading and inter account transfers.
9. A satisfaction level of customers is high 93% of respondents are satisfied by the level of
banking services they receive 22% say they have never faced any customer satisfaction
related issues , 10.37% of Indian respondents will change bank if they had a bad
experiences, 44% would let friends and family know about their issues.

 RECOMMENDATIONS :
 Banking should take necessary steps to create awareness among rural
people about the advantages and use of online banking services available
in the banks.
 The online banking should make the online enquiry & online payment
much easier to the customers to Grape the illiterate population.
 Most of the customers have not availed of the e-banking services because
they don’t trust the internet channel. So bank may set up a team of
personnel to train the customers to get familiar with internet channel.
 Customers judge technology of function and emotion in other words how
it makes their lives easier and how it feels when they use it. If the bank
digital presence is dated, it makes the customer feel satisfied and fail the
effect of online functions like delay, insufficient information etc.
 Always update the website & make the customers update about your new
product and services through banks websites.
 Charge lesser amount for online transaction and also inform the customers
about their transaction and the charges cut on that online transaction
through SMS or email.

BIBLIOGRAPHY
Website:

 https://www.google.com/
 https://www.sbi.co.in/
 https://www.icicibank.com/
 https://www.slideshare.net/

Banks:
 SBI(Sate Bank of India)
 ICICI(Industrial Credit & Investment Corporation of India Bank)

ANNEXURE-1
 SUPERVISOR’S CERTIFICATE

This is certify that NEHA KUMARI MAHATO a student of B.COM (HONOURS) in

Accounting & Finance of SIVANATH SASTRI COLLEGE under the University Of Calcutta
has worked under my supervision and guidance for this project work and prepared a project
report with the topic “ONLINE BANKING OF INDIA”.

The project report, which she is submitting in her genuine and original work to the best of my
knowledge.

Place: Kolkata

Date:

Signature:

Name: Prof.Debanjan Laha

Designation: Professor of commerce

Name of college: Sivanath Sastri College

ANNEXURE-2
 STUDENT DECLARATION

I hereby declared that the project work which the topic of “ONLINE BANKING OF INDIA”
submitted by me for the partial fulfillment of the degree of B.COM (HONOURS) in Accounting
and Finance under the University Of Calcutta is my own original work and has not been
submitted earlier to any other university for the fulfillment of the requirement for any other
degree.

I do hereby also declare that no chapter of these manuscripts in whole or in part has been
incorporated in this report from any earlier books or work done by other or by me. However
extract of any literature which has been used for this report has been duly acknowledged
providing detail of such literature in this reference.

Place: Kolkata

Date:

Signature:

Name: Neha KumariMahato

College Roll No.: 1230

Registration no.: 047-1211-0959-17

C.U. Roll No.: 171047-11-0229

ANNEXURE-3
 QUESTIONNAIRES

FOR CUSTOMER

1. Personal question

i. Name:

ii. Age:

iii. Education qualification:

o SSC
o Undergraduate
o Post Graduate
o No education
iii. Post:
o PO
o SO
o Clerk
o manager

iv. Sex:

v. Status:

2. Which bank account you have?

a. SIB

b. ICICI

c. Other

3. According to you who use online banking most?

a. Student

b. Businessmen

c. Profession/ expert

d. Employees

e. Other (specify)

4. Do you know online banking?

 a. Yes

b. No

5. How do you know about online banking?

a. Newspaper

b. Advertisement

c. Friends

d. Others

6. How frequently do you visit you bank branch?

a. Regularly

b.Weekly

c. Monthly

d. Quarterly

7. What were yours reasons for choosing our online banking services?

a. To save time

b. Convenience

c. 24 hours access to accounts

8. How often do you use your online service?

a. daily

b. Weekly

c. Monthly

d. Never

9. Which online features do you use mostly?

 a. Pay bills

b. Make an account

c. Transfer funds between accounts

d. Wire transfers

10. Which banks gives you proper services?

a. SIB

b. ICICI

c. None of these

11. Which bank gives you the more flexibility in online banking?

a. SIB

b. ICICI

c. Others

d. Both of these

12. Which kind of online banking transaction you prefer?

a. RTGS (real time gross settlement)

b. NEFT (national electronic funds)

c. ECS (electronic clearing services)

13. Do you trust the security of online banking services?

a. Completely

b. Strongly

c. May be

d. Not at all

14. From the following which you prefer more?

 a. Mobile banking

b. Mobile wallet

c. Both a & b

d. None of these

15. What is the disadvantage of online banking?

a. Security concern

b. Limited services

c. Difficult in using

d. No disadvantage

16. Do your bank charge unnecessary amount for not maintain minimum balance?

a. Yes

b. No

c. May be

FOR EMPLOYEES
17. How many people visit your bank website per day?

a. Less than 10000

b.10000 to 50000

c. Above 50000

18. How frequently do you update your website?

a. Daily

b. Weekly

c. Monthly

d. More than ones in a month

19. What was the reason behind introducing online banking?

a. Competing foreign bank

b. Man power shortage

c. Qualitative customer services

d. Faster transaction and time saving

20. What are the benefits to work with online banking?

a. Ease to operate

b. Improve service quality

c. Save time

d. Minimize the cost of transaction

21. How long has your bank been providing internet banking to customer?

a. Less than a year

b. 1 to 5 years

c. More than 5 years

22. What are the complaint register per month from e-banking customers?

a. Delay in banking

b. High cost of services charge

c. Lack of attention of bank employee

d. Other

23. Why is e-banking beneficial for the bank?

a. Gaining customer royalty

b. Market share & strength of bank

c. Vision of the future

d. Other

24. How many complaints received regarding the online banking services per month?
a. 50

b. 100

c. More than 100

d. No complaints