A

COMPREHENSIVE PROJECT
ON

A STUDY ON CUSTOMER PERCEPTIONS ABOUT E-BANKING SERVICES

BY
BOB & HDFC BANK IN AHMEDABAD

SubmittedBy:EnrolmentNo:

DabgarDharmesh137960592017
VegdaJayprakash137960592034

INTRODUCTIONOFBANK
HISTORY OF BOB BANK:
PriortoindependencefromtheBritishRule,theancientIndiawas

ruledbyprincelystates,scatteredoverthewidthandbreadthofthelarge
Indiannation.
TheMaharajaofBaroda,aprincelystateofBritishIndia,bynameSir
SayyajiraoGaekwadIII,hadthesamevisioninestablishingabankfor
servicingthepublicatlargeandthecitizensofBarodaState,aGuajarati
populationinparticular.
On20thJuly1908,BankofBarodawasestablishedundertherulesof
CompaniesAct1897,inasmallbuildingatBaroda,bytheMaharajawitha
paidupcapitalofRs.10lakhs.

 The guidelines set by the Maharaja for the bank was to serve the people of

the State of Baroda as well as the neighboring regions with money lending,
saving, transmission and encouraging the development of arts, science,
commerceandtradeforthepeople.
Thesuccess story of the Bank of Baroda is studded with manyaleapsand
stridesitmadeintheInternationalpresence,apartfromestablishingbranches
all over the Indian nation, by acquisition of already popular banking
entities,asalsocommencingnewcommercialbankingestablishments,in
theuniqueGuajaratistyle.Duringtheyearsof1908to2007(andthecentury
yearbeingroundthecorner)BankofBarodasgrowthowestotheexcellence
inrenderingfinancialproductsandservicestothenationalandinternational
population.CountriesbeginningfromAmericatoZambia,inthe
alphabetical order have been enjoying the services of Bank of Baroda as of
today.

 HISTORY OF HDFC BANK:

TheHousingDevelopmentFinanceCorporationLimited(HDFC)was

amongstthefirsttoreceivean'inprinciple'approvalfromtheReserveBank
ofIndia(RBI)tosetupabankintheprivatesector,aspartoftheRBI's
liberalizationoftheIndianBankingIndustryin1994.
ThebankwasincorporatedinAugust1994inthenameof'HDFCBank
Limited',withitsregisteredofficeinMumbai,India.HDFCBankcommenced
operationsasaScheduledCommercialBankinJanuary1995.
HDFCbanksbusinessphilosophyisbasedonourfourcorevalues-
CustomerFocus,OperationalExcellence,ProductLeadershipandPeople.
Theybelievethattheultimateidentityandsuccessoftheirbankwillresidein
theexceptionalqualityofpeopleandtheirextraordinaryefforts.
TheobjectiveoftheHDFCBankistoprovideitstargetmarketcustomersa
fullrangeoffinancialproductsandbankingservices,givingthecustomera
one-stepwindowforallhis/herrequirements.

INTRODUCTIONOFTHESTUDY
InformationTechnologyhasbecomeanecessarytoolintodays

organizations.Bankstodayoperateinahighlyglobalized,liberalized,
privatizedandacompetitiveenvironment.Inordertosurviveinthis
environmentbankshavetouseIT.
Thebankingindustrycankilltwobirdswithonestonethatiswithhelpof
technology.Tremendousprogresstookplaceinthefieldoftechnologywhich
hasreducedtheworldtoaglobalvillageandithasbroughtremarkable
changesinthebankingindustry.Branchbankinginthebrickandmortar
modehasbeentransformedintoclickandorderchannelmode.
E-bankingisthetermthatsignifiesandencompassestheentiresphereof
technologyinitiativesthathavetakenplaceinthebankingindustry.
E-bankingisagenerictermmakinguseofelectronicchannelsthrough
telephone,mobilephones,internetetc.fordeliveryofbankingservicesand
products.Theconceptandscopeofe-bankingisstillinthetransitionalstage.
E-bankinghasbrokenthebarriersofbranchbanking.

BACKGROUNDOFTHESTUDY
WhatIsE-Banking?
E-bankingisdefinedastheautomateddeliveryofnewandtraditionalbanking

productsandservicesdirectlytocustomersthroughelectronic,interactive
communicationchannels.
E-bankingincludesthesystemsthatenablefinancialinstitutioncustomers,
individualsorbusinesses,toaccessaccounts,transactbusiness,orobtain
informationonfinancialproductsandservicesthroughapublicorprivate
network,includingtheInternet.
Customersaccesse-bankingservicesusinganintelligentelectronicdevice,
suchasapersonalcomputer(PC),personaldigitalassistant(PDA),
automatedtellermachine(ATM),kiosk,orTouchTonetelephone.
Traditionalbanksoffermanyservicestotheircustomers,includingaccepting
customermoneydeposits,providingvariousbankingservicestocustomers,
andmakingloanstoindividualsandcompanies.

 E-BankinginIndia:
InIndiae-bankingisoffairlyrecentorigin.Thetraditionalmodelforbanking

hasbeenthroughbranchbanking.Onlyintheearly1990stherehasbeen
startofnon-branchbankingservices.
ThecreditoflaunchinginternetbankinginIndiagoestoICICIBankfollowed
withinternetbankingservicesin1999.
SeveralinitiativeshavebeentakenbytheGovernmentofIndiaaswellasthe
ReserveBanktofacilitatethedevelopmentofe-bankinginIndia.
TheGovernmentofIndiaenactedtheITAct,2000witheffectfromOctober
17,2000whichprovidedlegalrecognitiontoelectronictransactionsandother
meansofelectroniccommerce.

 NeedForE-Banking:
Onehastoapproachthebranchinperson,towithdrawcashordeposita

chequeorrequestastatementofaccounts.
IntrueInternetbanking,anyinquiryortransactionisprocessedonlinewithout
anyreferencetothebranch(anywherebanking)atanytime.Providing
Internetbankingsincreasinglybecominga"needtohave"thana"niceto
have"service.
Thenetbanking,thus,nowismoreofanormratherthananexceptionin
manydevelopedcountriesduetothefactthatitisthecheapestwayof
providingbankingservices.

 DiagramOfE-BankingSystem:

OBJECTIVESOFTHESTUDY
ToknowcustomerattitudetowardsE-BankingservicesinAhmedabad.
Tofindoutthelevelofexpectationofthecustomersandthelevelof

perceptionofthecustomersfromtheservicesofferedbythebanks.
Toinvestigatewhetherthebanksprovidestheservicesaspertheexpectation

ofthecustomers.

HYPOTHESIS
EASE OF USE:

Ho:EaseofusedoesnotinfluencetheuseofEBankingservices.
H1:EaseofusedoesinfluencetheuseofEBankingservices.
DIRECT ACCESS:

Ho:DirectAccessdoesnotinfluencetheuseofEBankingservices.
H1:DirectAccessdoesinfluencetheuseofEBankingservices.

RESEARCHMETHODOLOGY
ResearchDesign:

I.OurresearchisDescriptiveinnatureasthebankingindustryiswelldevelopedinIndiaandlotofresearchhasalreadybeendoneinthisarea.
II.Intheresearch,thereisacomparisonbetweentheHDFCBankandthe
BankofBaroda,whichprovidebettere-bankingservicestotheircustomer.

SourcesofData:
1.

PrimaryData:

Itiscollectedthroughstructuredquestionnairebyconductingsurvey.
2.

SecondaryData:

Internet,journals,books,magazines.

DataCollectionMethod:
Thedifferentservicesprovidebythebanksandcustomersexpectation

andperceivedhavebeenfindoutonthebasisofdatacollectedfromthe
customers.

Population:

Size:4004583(PopulationofAhmedabad)

Samplesize150

DATAANALYSIS&INTERPRETATION
Age:
40
40
34
32

35

27

30
25

17

20
15
10
5
0
Below20

21-30

31-40

41-50

Above50

 DoyouthinkthatE-bankingservicesarenecessaryin

presentscenario?

140
120
100
135
80
60
40
15
20
0
YES

NO

 WhileOpeningUptheAccount,WereYouAwareOfE-bankingServices

ProvidedByYourBank?

100%
90%
80%
70%
60%

Yes;109

50%

No;41

40%
30%
20%
10%
0%
Yes
No

 Fromwhichbankyouareavailingtheseservices.

60

50

40

30

54
47
36

20

10

13

0
BOB

HDFC

BOTH

Other

 WhatdoyoupreferwhilechoosingE-Bankingservices.

Others;17;11%

GoodService;63;42%
PeopleReferences;40;27%

CostCharges;30;20%

GoodService
CostCharges
PeopleReferences
Others

 WhichOfTheFollowingE-BankingServicesIsYouAwareOf?
120

102
97

100

80
67
60
49
40

21

20
12

0
InternetBanking

mobileBanking

PhoneBanking

OneLineBanking

DebitCard

Others

 ToWhatExtentIsYouSatisfiedwithYourBanksE-bankingServices?

19%
37%
10%
13%
21%

Highlysatisfied(1)
satisfied(2)
Neutral(3)
Dissatisfied(4)
Highlydissatisfied(5)

 Respondents from BOB and HDFC

60

50

40

30
54
20

36

10

0
BOB

HDFC

 BOB
30

25

20

15

29

10
11
8

0
Highlysatisfied(1)

satisfied(2)

Neutral(3)

Dissatisfied(4)

Highlydissatisfied(5)

 HDFC

16
14
12
10
16
8
11

6
4

0
Highlysatisfied(1)

satisfied(2)

Neutral(3)

Dissatisfied(4)4

Highlydissatisfied(5)

 WhichOfTheFollowingBenefitsAccrueToYou,WhileUsingE-Banking

Services?
70

64

60
50

39

40

29

30
18
20
10
0
TimeSaving

Inexpensive

EasyProcessing

EasyFundTransfer

 BOB

EasyFundTransfer;9%
EasyProcessing;18%
TimeSaving;45%

Inexpensive;29%

 HDFC

EasyFundTransfer;8%
EasyProcessing;14%

TimeSaving;56%
Inexpensive;22%

 WhichTypeOfProblemAreYoufacingWhileUsingE-BankingServices?
24
25
17

20

15
7

10

5
5

 YouHaveanOptiontoSwitchOveryourBankforUsingtheE-Banking

Service.So,DoYouSwitchYourBank?

20
20
18
14

16
14
12
10
8
6
4
2
0

BOB

HDFC

 Doyouthinkthatbanksprovideallthetypesoffacilitiesasperyourneeds?

93

100
90
80
70
60

57

50
40
30
20
10
0
Yes
No

FINDINGS
Fromourstudywefindoutthat114maleand36femaleareusingE-

bankingservicesofboththebanks.Themalearehavingmore
knowledgeaboutthetransactionsandhavingmoreknowledgeaboutthe
servicesprovidedbythebanks.Onlytheworkingladieshaving
knowledgeabouttheservicesorthefemalehavingtheknowledgebutnot
ofthealltheserviceswhichareprovidedbythebanks.Sothatswhywe
consideredonlythosepersonswhoarehavingknowledgeaboutallservices
ofE-bankingwhichisprovidedbythebanks.
Mostoftherespondentswholiesundertheageof21-30areusingE-

bankingservicesasnearabout40respondentsareusingtheseservices
becauseundertheageoftheserespondentstheyarehavingmore
knowledgeabouttheservicesofe-banking.

 MostofrespondentsarebusinessmanareusingE-bankingservices

asnearabout48respondentsareusingE-bankingservices.Because
thebenefitswhicharehavingwhileusingtheseservicesaremore
benefitedbythebusinessmanpeoplesotheyareavailingthese
servicesmorethantheotherrespondents.
Theoverallpercentageofbusinessmenhavingcompleteknowledgea
boute-bankingservicesprovidedbythebankwhileopeninganaccount
initis73%andthepercentageofpeoplehavenoawarenessofebankingservicesprovidedbythebankis27%.Itcanreasonably,be
concludedthatnearly73%ofthepopulationishavingawarenessaboutebankingservices.

LIMITATIONSOFTHESTUDY
Respondentsmaygivebiasedanswersfortherequireddata.

Someoftherespondentsdidnotliketorespond.
ThestudyisfortheBOB&HDFCBankconfinedtoa

particularlocationandaverysmallsampleofrespondents.
Hencethefindingscannotbetreatedasrepresentativeofthe
entirebankingindustry.
Respondentstriedtoescapesomestatementsbysimply

answeringsatisfiedornotsatisfiedtomostofthe
statements.Thiswasoneofthemostimportantlimitations
faced,asitwasdifficulttoanalyzeandcomeataright
conclusion.

CONCLUSION
Thisstudyattemptedtoidentifykeyqualityattributesofinternetbanking

servicesbyanalyzinginternetbankingcustomers&theircommentson
bankingexperience.
Thefindingsofthisstudyshowthatdespiteofmanyadvantagesofonline
banking.Peoplestillconsideritasanalternativeforanalyzingtheirbank
records.Althougheverybanktodayprovidesthefacilityofonlinebanking
butmostofpeopleuseitonlyonceamonth.
Banksareprovidingfreeinternetbankingservicesalsosothatthe
customerscanbeattracted.Byaskingthebankemployswecameto
knowthatmaximumnumbersofinternetbankaccountholdersareyouth
andbusinessman.
E-Bankingisaninnovativetoolthatisfastbecominganecessity.Itisa
successfulstrategicweuponforbankstoremainprofitableinavolatile
andcompetitivemarketplaceoftoday.

RECOMMENDATION
Wecanseethetimeischangingandwethepassageoftime

peopleareacceptingtechnologythereisstillalotofperceptualblocking
whichhampersthegrowthitsthenormaltendencyofahumannotto
havechangesworkontheoldtrack,thatsalsooneofthereasonfor
theslowacceptanceofinternetbankingaccounts.
Internetbankingfacilitymustbemadeavailableinallbranchesof
thesetwoBanks.
Provideaplatformfromwherethecustomerscanaccessdifferent
accountsatsingletimewithoutextracharge.