ABSTRACT E-banking means any user with a personal computer and a browser can get connected to his bank

website to perform any of the virtual banking functions. In E banking system the bank has a centralized database that is web-enabled. All the services that the bank has permitted on the internet are displayed in menu. Any service can be selected and further interaction is dictated by the nature of service. Once the branch offices of bank are interconnected through terrestrial or satellite links, there would be no physical identity for any branch In literature, the major emphases have laid on significant innovation and investment is under way that could lead to very rapid expansion in fully electronic business to business and consumer to consumer payments in near time. While the pace of change in these markets makes it difficult to determine, eventually these innovations will generate substantial efficiencies in retail payment system. Bank regulators are paying significant attention to appropriate risk management of new technology. Evidence reveals a sense of urgency about the adoption of new technology and reflects substantial competitive pressure to act quickly.

The objective of the study was to comprehend the E Banking service provided by HDFC Bank. The research was descriptive in nature. The universe of the study was the customers of the HDFC Bank. The survey was carried out on 100 respondents. In this research for data analysis tools used were tables and graphs. Majority of the respondents were aware of the E Banking service provided by the bank and availed the various services offered through E banking. Majority of the respondents felt that net banking facility have enabled the customers to perform various banking transactions online. It is hoped that the survey findings will have some useful applications.

CHAPTER NO.

PARTICULARS Introduction

PAGE NO.

1.1 1.2 1.3 1.4 1.5

Introduction to service sector Service sector in India Introduction to banking sector Technologies in banking Introduction to e banking Review of Literature and Research design

2 3 5 9 15

2.1 2.2 2.4 2.5 2.6 2.7 2.8

Review of Literature. Statement of the problem Scope of the study Objective of the study Research methodology Limitation of the study Chapter Scheme Profile of the Industry and Organization Profile of the industry

17 19 19 20 20 22 23

3.1

Banking sector in India Profile of the Organization

25

3.2 3.3 3.4

HDFC Bank An introduction to E banking Meaning of E banking Results, Analysis and Discussions Findings Suggestions and Conclusion

26 35 36 43-73 74-83

LIST OF TABLES Table No. 4.1 4.2 Description Demographic profile of the respondents Reason for opting HDFC bank services
2

Page no. 44 46

4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15

Time period since HDFC services are availed Awareness regarding HDFC bank E banking services Preference of E banking over money transaction Accessibility of E banking service Importance of E banking in daily activities. Convenience of E banking Satisfaction on charges implied on E banking Adequacy of e banking services Ranking of e banking services Difficulties while logging onto account Occasion on which find difficulties Agreement regarding E banking

48 50 52 54 56 58 60 62 64 66 68 70 72

LIST OF FIGURES Chart No. 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 Description Reason for opting HDFC bank services Time period since HDFC services are availed Awareness regarding HDFC bank E banking services Preference of E banking over money transaction Accessibility of E banking service Importance of E banking in daily activities. Convenience of E banking Satisfaction on charges implied on E banking Adequacy of e banking services Ranking of e banking services Difficulties while logging onto account Occasion on which find difficulties Page no. 47 49 51 53 55 57 59 61 63 65 67 69 71

4.14

Agreement regarding E banking

73

CHAPTER 1 INTRODUCTION

CHAPTER 1

1.1 INTRODUCTION TO SERVICE SECTOR Service Sector is the lifeline for the social economic growth of a country. It is today the largest and fastest growing sector globally contributing more to the global output and employing more people than any other sector. The real reason for the growth of the service sector is due to the increase in urbanization, privatization and more demand for intermediate and final consumer services. Availability of quality services is vital for the wellbeing of the economy. In advanced economies the growth in the primary and secondary sectors are directly dependent on the growth of services like banking, insurance, trade, commerce, entertainment etc. The service sector is going through almost revolutionary change, it dramatically affects the way in which we live and work. New services are continually being launched to satisfy consumers existing needs and to meet the needs that they do not even know they had. Ten years ago people did not anticipate the need for email, online banking, web hosting, online reservation and many other new services, but today many of us feel we cannot survive without them. Similar transformations are happening in Business to business marketing. Service organisations vary widely in size. At one end are the huge international corporations operating in industries such as tourism, airlines, banking, telecommunication etc whereas on the other end of the scale is a vast array of locally owned and operated small businesses including parlours , hotels , laundry and numerous business to business services.

How important is the service sector in an economy? In most countries services add more economic value than agriculture, raw materials and manufacturing combined. In developed economies employment is dominated by service jobs and most new job growth comes from services.
5

Jobs range from high paid professionals and technicians to minimum wage positions.

Service organizations can be any size, from huge global corporations to local small businesses.

Most activities by govt. agencies and nonprofit organisation involve service.

1.2 Service Sector in India: In alignment with the global trends, Indian service sector has witnessed a major boom and is one of the major contributors to both employment and national income in recent times. The activities under the purview of the service sector are quite diverse. Trading, transportation and communication, financial, real estate and business services, community, social and personal services come within the gambit of the service industry. Service sector in India accounts for more than half of Indias GDP

The various sectors that combine together to constitute service industry in India are stated as under: Trade Hotels and restaurants Railways Other transport and storage Communication (post and telecom) Banking Insurance Dwellings, real estate Business services

Public administrations, defence Personal services Community services Other service

1.3 INTRODUCTION TO BANKING SECTOR

A bank is an institution that deals with money and credit. Different people understand meaning of a bank in different ways. For a common man, bank is a storehouse where money is stored, for a businessman it is a financial institution and for a day to day customer it is an institution where he can deposit his savings. Banks play an important role in the economy of any country as they hold the savings of the public. Provide means of payment for goods and services and provide necessary finance for development of business and change. Thus bank is a link in the flow of funds from the savers to the users hence they should render efficient customer service in order to retain the present customers and also to attract the potential customer. In the past the banks did not face any attraction in the Indian economy because of the low level of the economic activities and the little business prospects. Today we find positive changes in the national business development policy. Earlier the moneylenders had a strong hold over the rural population which resulted in exploitation of small and marginal savers. The private sector banks failed in serving the society. This resulted in the nationalisation of 14 commercial banks in 1969. There was a basic change in the banking concept with a beginning in the nationalisation of big commercial banks. The involvement of public sector banks, transformed the Indian economy. The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress. The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look anew at their existing portfolio offering. Conservative banking practices allowed Indian banks to be insulated partially from the Asian currency crisis. Indian banks are now quoting a higher valuation when compared to banks in other Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that have major problems linked to huge Non Performing Assets (NPAs) and payment defaults. Co-operative banks are nimble footed in approach and armed with efficient branch networks focus primarily on the high revenue niche retail segments.
8

The Indian banking has finally worked up to the competitive dynamics of the new Indian market and is addressing the relevant issues to take on the multifarious challenges of globalization. Banks that employ IT solutions are perceived to be futuristic and proactive players capable of meeting the multifarious requirements of the large customers base . Private Banks have been fast on the uptake and are reorienting their strategies using the internet as a medium The Internet has emerged as the new and challenging frontier of marketing with the conventional physical world tenets being just as applicable like in any other marketing medium. The Indian banking has come from a long way from being a sleepy business institution to a highly proactive and dynamic entity. This transformation has been largely brought about by the large dose of liberalization and economic reforms that allowed banks to explore new business opportunities rather than generating revenues from conventional streams (i.e. borrowing and lending). The banking in India is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances. Indian nationalized banks (banks owned by the government) continue to be the major lenders in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. The Indian banking can be broadly categorized into nationalized, private banks and specialized banking institutions. The Reserve Bank of India acts as a centralized body monitoring any discrepancies and shortcoming in the system. It is the foremost monitoring body in the Indian financial sector. The nationalized banks (i.e. government-owned banks) continue to dominate the Indian banking arena. Industry estimates indicate that out of 274 commercial banks operating in India, 223 banks are in the public sector and 51 are in the private sector. The private sector bank grid also includes 24 foreign banks that have started their operations here. The liberalize policy of Government of India permitted entry to private sector in the banking, the industry has witnessed the entry of nine new generation private banks. The major differentiating parameter that distinguishes these banks from all the other banks in the Indian banking is the level of service that is offered to the customer. Their focus has always centred on the customer understanding his needs, pre-empting him and consequently delighting him with various configurations of benefits and a wide portfolio of products and services. These banks have generally been established by promoters of repute or by high value domestic financial institutions. The popularity of these banks can be gauged by the fact that in a short span of time, these banks have gained considerable customer confidence and consequently have shown impressive growth rates. Today, the private banks corner almost four per cent share of the total share of deposits.
9

Most of the banks in this category are concentrated in the high-growth urban areas in metros (that account for approximately 70% of the total banking business). With efficiency being the major focus, these banks have leveraged on their strengths and competencies viz. Management, operational efficiency and flexibility, superior product positioning and higher employee productivity skills. The private banks with their focused business and service portfolio have a reputation of being niche players in the industry. A strategy that has allowed these banks to concentrate on few reliable high net worth companies and individuals rather than cater to the mass market. These well-chalked out integrates strategy plans have allowed most of these banks to deliver superlative levels of personalized services. With the Reserve Bank of India allowing these banks to operate 70% of their businesses in urban areas, this statutory requirement has translated into lower deposit mobilization costs and higher margins relative to public sector banks.

The three major changes in the banking sector post liberalization are: Step to increase the cash outflow through reduction in the statutory liquidity and cash reserve ratio. Nationalized banks including SBI were allowed to sell stakes to private sector and private investors were allowed to enter the banking domain. Foreign banks were given greater access to the domestic market, both as subsidiaries and branches, provided the foreign banks maintained a minimum assigned capital and would be governed by the same rules and regulations governing domestic banks. Banks were given greater freedom to leverage the capital markets and determine their asset portfolios. The banks were allowed to provide advances against equity provided as collateral and provide bank guarantees to the broking community

10

1.4 TECHNOLOGIES & INNOVATIONS IN BANKING

TECHNOLOGIES IN BANKING Technology plays a very important role in banks internal control mechanisms as well as services offered by them. It has in fact given new dimensions to the banks as well as services that they cater to and the banks are enthusiastically adopting new technological innovations for devising new products and services. The latest developments in terms of technology in computer and telecommunication have encouraged the bankers to change the concept of branch banking to anywhere banking. The use of ATM and Internet banking has allowed anytime, anywhere banking facilities. Automatic voice recorders now answer simple queries, currency accounting machines makes the job easier and self-service counters are now encouraged. Credit card facility has encouraged an era of cashless society. Today MasterCard and Visa card are the two most popular cards used world over. The banks have now started issuing smartcards or debit cards to be used for making payments. These are also called as electronic purse. Some of the banks have also started home banking through telecommunication facilities and computer technology by using terminals installed at customers home and they can make the balance inquiry, get the statement of accounts, give instructions for fund transfers, etc. Through ECS we can receive the dividends and interest directly to our account avoiding the delay or chance of losing the post.

Today banks are also using SMS and Internet as major tool of promotions and giving great utility to its customers. For example SMS functions through simple text messages sent from your mobile. The messages are then recognized by the bank to provide you with the required information. All these technological changes have forced the bankers to adopt customer-based approach instead of product-based approach. Electronic Banking: With the introduction of computers in Indian banks and with the advent of ATMs the banking services are provided across the banks. Customers need not necessarily visit the bank to do banking
11

transactions when the bank provides them with tele banking and or remote banking facilities. This type of banking is called electronic banking and the concept is becoming popular with individual as well as corporate entities in India. 1. Automated Teller Machines (ATMs): ATMs have eliminated the time limitations of customer service and offer a host of banking services including deposits, withdrawals, requisitions, instructions and transactions. ATMs traditional and primary use is to dispense cash upon insertion of a plastic card and its unique PIN or personal identification number. It is issued to Current and Saving account holders of a bank who hold a certain minimum balance. When the card is inserted into the ATM, the machine sensing equipmentidentifies the account holder and asks for his or her identification PIN number.This number is not even known to the bank staff and is unique and secret to the individual

2.

Internet Banking: Banks have over a long time been using electronic and telecommunication network for

delivering a wide range of value added products and services. The delivery channels include dial-up connection, private network, public network etc and the devices include telephone personal computers including the ATM etc. With the popularity of PCs and easy access to the internet and World Wide Web banks increasingly use internet as a channel for receiving instructions and delivering their products and services to their customers. This form of banking is often referred to as internet banking, although the range of products and services offered by different banks, vary widely both in their content and sophistication. 3. Mobile Banking: Through inter banking one can visit the web site of each bank by entering his password and known the account balance and even pass his own credit and debit entries. This means that we can do our banking through our personal computer settings at home. Banks may soon allow zero balance savings accounts through internet facility only. Customers can now make balance enquires download statements and open fixed deposits over the net. They will soon be able to carry out all their transactions over the net. So visiting a bank would be needless. Time to come; mobile phones will drive banking transactions. These mobile phones will drive banking transactions. These mobile phones will be equipped with smart cards that are embedded with banking and other information. This mobile
12

phone banking facility is yet to come but the mechanics of linking the banking with the cell phone is being sorted out. Teller machines are being installed in the banks for the electronic banking facility. Banking will be on wheels and mobile by the use of smart banking.

4.

Note and coin counting machines: To reduce the need of manual counting, note and counting machines are available which

counts a bundle of notes placed on it. Loose notes are inserted into the machine. The machine then counts the notes at top speed, while simultaneously indicating the number counted on a digital display. Every time the number reaches 100, the machine stops, subject to it being fixed at 100 and allows for the bundle to be taken out. This machine does relieve the drudgery involved in counting. However, one limitation of this machine is that the notes have to be in fairly good condition for the machine to able to count properly. However, the machine requires all the notes to be in the same denomination.

5.

Electromagnetic Cards: In the modern days of commerce credit cards have acquired a fairly prominent and pervasive

role. With the increasing use of credit cards the society is moving towards cashless transactions. In India however the use of credit cards is restricted to small value and mostly personal transactions. The two international credit card giants viz, Visa international and Master Card international are poised to make deeper inroad in untapped Indian market. Types of electromagnetic cards: 1) Charge card: In such cards transactions are accumulated over a period of time generally a

month and the total amount is charged i.e. debited to the account. In charge card the amount becomes payable immediately on the debit to the account. 2) Credit card: This is the same as charge card where the transactions are charged to the

account with the total value of transaction debited to the card holders account once in a month. The difference between the credit and charge card is that in case of the credit card holder is given about 25 to 50 days time to credit his account in case there are insufficient funds in his account at the time of debit.

13

3)

Debit card: A bank-issued card that allows its users to access their funds for the purpose of

paying for merchandise.

4)

Smart card: There are two types of smart cards intelligent memory chip and microprocessor

cards. The memory smart cards have been around for several years they are being used in paying phones, identification, access control, voting and other applications. Processer smart cards are the most advanced and are ideally suited for banking and financial application where re use of the card is allowed. 5) Member card: This is used by members of a club or a chain of hotels. E.g. the Taj Card is a

card issued by the Management of the Taj group of Hotels to be used by patrons of their hotels .Similarly there are many other types of cards where the usage is exclusive to the members of the group.

Conclusion: With the development of modern communication facilities, electronic payment systems are becoming popular. These are teller machines available for bank customers within the bank as well as outside the bank premises. ATMs which are being located even at public places, are able to provide the customers minimal banking services including cash payme nts round the clock. Shared ATMs are also introduced in India where the services are provided across the banks. Customers need not necessarily visit the bank to do banking transactions when their banker provides them tele-banking or remote banking facilities. We have also seen that the various electronic and electro-mechanical aids that help the modern banker to efficiently render innovative and novel customer service. Equipment like note and coin counting machines help the banker to take care of the tedium in his task, reduce drudgery and at the same time efficiently discharge his functions. These technological aids not only take care of some of the physical routine tasks but also contribute substantially to efficient housekeeping functions and also render services that are in tune with the customer needs and satisfaction.

14

CHAPTER 2 REVIEW OF LITERATURE AND RESEARCH DESIGN

15

2.1 LITERATURE REVIEW

Internet and the Banking System

The rapid growth of the Web creates a tremendous opportunity for new businesses, but also requires a new way of viewing the market place for the community banker. Experts estimates that consumer use of e banking services will increase over 20-fold by the end of the century. Geography and the number of branches become irrelevant and community banks are able to offer the same level of service and convenience to customers as the largest banks. In the past, over 60% of existing bank customers have cited their bank selection to be based on convenience of location. For the customers of today, convenience of location includes the availability of 24-hour access via the Internet. (Wilson, 1996) Seitz and Stickel (1999) considered that financial service companies are using the Internet as a new distribution channel. The goals are: complex products may be offered in an equivalent quality with lower costs to more potential customers there may be contacts from each place of earth at any time of day and night

Seybold (1998) identifies 8 critical success factors for electronic banking:

Own the customers total experience Streamline business processes that impact the customer Provide a 360-degree view of customer relationship Let customers help themselves

16

Help customers do their job Deliver personalized service

The Indian Internet Banking Journey In 2001, a Reserve Bank of India survey revealed that of 46 major banks operating in India, around 50% were either offering Internet banking services at various levels or planned to in the near future. According to a research report,( India Research, Kotak Securities, May 2000.) while in 2001, India's Internet user base was an estimated 9 lakh; it was expected to reach 90 lakh by 2003. Also, while only 1% of these Internet users utilized the Internet banking services in 1998, the Internet banking user base increased to 16.7% by mid- 2000. Joseph et al. (1999)investigated the influence of internet on the delivery of banking services. They found six underlying dimensions of e-banking service quality such as convenience and accuracy, feedback and complaint management, efficiency, queue management, accessibility and customization Jun and Cai (2001) identified 17 service quality dimensions of i-banking service quality. These are reliability, responsiveness, competence, courtesy, credibility, access, communication, understanding the customer, collaboration, continuous improvement, content, accuracy, ease of use, timeliness, aesthetics, security and divers features. They also suggested that some dimensions such as responsiveness, reliability and access are critical for both traditional and internet banks.

2.2 STATEMENT OF THE PROBLEM

E-banking means any user with a personal computer and a browser can get connected to his bank website to perform any of the virtual banking functions. In E banking system the bank has a centralized database that is web-enabled. All the services that the bank has permitted on the internet are displayed in menu. Any service can be selected and further interaction is dictated by the nature of service. Once the branch offices of bank are interconnected through terrestrial or satellite links, there would be no physical identity for any branch
17

The study is made taking consideration of E- Banking of HDFC bank. It investigates about all applications of E- Banking offered by HDFC bank. General consumers have been significantly affected in a positive manner by E-banking. Many of the ordinary tasks have now been fully automated resulting in greater ease and comfort. The study would help in determining the usefulness of E- Banking as perceived by customer of HDFC bank. Customer acceptance and Satisfaction experienced in e- banking is also an area of research.

2.3 SCOPE OF THE STUDY

The area of study is restricted to customers of HDFC bank branch Mathikere

2.4 OBJECTIVES OF STUDY

To study the awareness of E BANKING among the customers HDFC bank To know usage habits of customers of HDFC bank Find the customer satisfaction relating to E - Banking service. To study the problems faced by the customers in availing the E BANKING facilities and to find out remedial measures

18

2.5 Research Methodology The data collected from questionnaire will be tabulated and analyzed so that it can easily understand to the user. There are a number of ways to be used to present the result of findings are:o Pie-chart o Graphs

SAMPLING PLAN

Since it is not possible to study whole universe, it becomes necessary to take sample from the universe to know about its characteristics.

Sampling Units In this project sampling unit consisted of the various individuals who had their bank accounts with HDFC Bank

Sample Technique The sampling technique used is quota sampling. For this purpose 100 customers of HDFC bank are taken. Among this 60 % of customers belongs to age group 20 35, 20% of customers belongs to age group 35 50 and remaining 20 % belongs to age above 50 years

Research Instrument: Structured Questionnaire

19

. Contact Method: Personal Interview.

SAMPLE SIZE: 100 customers of HDFC bank are taken as sample

DATA COLLECTION INSTRUMENT DEVELOPMENT:

The mode of collection of data will be based on Primary as well as Secondary data. Primary data: Primary data collection will base on personal interview of customers and people linked with HDFC. The questionnaire according to the necessity of the data to be collected.

Secondary data:

Collection of information from HDFC website and different various websites related to E-banking

20

2.5 Limitation of Study

1. Non representative sample: In this research project a sample survey was conducted. A sample of 100 respondents was selected. So such sample size cannot be said to be the true representative of the universe.

2. Shortage of time: The time period of study was very limited. It is very difficult to have in detail study on project work due to limited time period. The period of 4 to 6 weeks is not enough for the proper study of the project. 3. Inadequate data: The data provided was not up to the mark due to which we faced problems in our research.

4. Lack of scientific method: The lack of scientific training in methodology of research was great impediment in our research program, which led to the delay of research.

5. Biasness in the responses: The answers provided by the respondents suffer from biasness.

2.6 Chapter Scheme :

1 2 3 4 5

Introduction Review of literature and research design Profile of industry and organization Results, Analysis and Discussion Summary of findings, conclusions and recommendations

21

CHAPTER 3 PROFILE OF THE INDUSTRY AND ORGANAISATION

22

3.1 BANKING SECTOR IN INDIA

Banks are now the most significant players in the Indian financial market. They are the biggest purveyors of credit, and they also attract most of the savings from the population. The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look anew at their existing portfolio offering. Driven by the socialist ideologies and the welfare state concept, public sector banks have long been the supporters of agriculture and other priority sectors. They act as crucial channels of the government in its efforts to ensure equitable economic development. The liberalize policy of Government of India permitted entry to private sector in the banking, the industry has witnessed the entry of nine new generation private banks. The major differentiating parameter that distinguishes these banks from all the other banks in the Indian banking is the level of service that is offered to the customer. Their focus has always centred around the customer understanding his needs, pre-empting him and consequently delighting him with various configurations of benefits and a wide portfolio of products and services. banks corner almost 4% share of the total share of deposits These banks have generally been established by promoters of repute or by high value domestic financial institutions. Today, the private

23

PROFILE OF THE COMPANY

3.2 HDFC BANK

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.

PROMOTER

HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

BUSINESS FOCUS

HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is committed to
24

maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank's business philosophy is based on four core values Operational Excellence, Customer Focus, Product Leadership and People. .

DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 1229 branches spread over 444 cities across India. All branches are linked on an online real-time basis. Customers in over 120 locations are also serviced through Telephone Banking. The Bank's expansion plans take into account the need to have a presence in all major industrial and commercial centers where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centers where the NSE/BSE has a strong and active member base. The Bank also has a network of about over 2526 networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

TECHNOLOGY

HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. All the bank's branches have online connectivity, which enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs).

25

The Bank has made substantial efforts and investments in acquiring the best technology available internationally, to build the infrastructure for a world class bank. The Bank's business is supported by scalable and robust systems which ensure that our clients always get the finest services we offer.

The Bank has prioritized its engagement in technology and the internet as one of its key goals and has already made significant progress in web-enabling its core businesses. In each of its businesses, the Bank has succeeded in leveraging its market position, expertise and technology to create a competitive advantage and build market share.

PRODUCT SCOPE

HDFC Bank offers a bunch of products and services to meet the every need of the people. The company cares for both, individuals as well as corporate and small and medium enterprises. For individuals, the company has a range accounts, investment, and pension scheme, different types of loans and cards that assist the customers. The customers can choose the suitable one from a range of products which will suit their life-stage and needs.

For organizations the company has a host of customized solutions that range from Funded services, Non-funded services, Value addition services, Mutual fund etc. These affordable plans apart from providing long term value to the employees help in enhancing goodwill of the company.

The products of the company are categorized into various sections which are as follows: Accounts and deposits.
26

 Loans. Investments and Insurance. Forex and payment services. Cards. Customer center.

BUSINESS SEGMENTS HDFC Bank offers a wide range of commercial and transactional banking services and treasury products to wholesale and retail customers. The bank has three key business segments: (i) Wholesale Banking Services

The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporate and agro-based businesses. For these customers, 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, which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. Based on its superior product delivery / service levels and strong customer orientation, the Bank has made significant inroads into the banking consortia of a number of leading Indian corporates including multinationals, companies from the domestic business houses and prime public sector companies. It is recognized as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks.

(ii) Retail Banking Services

27

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 is also a leading provider of Depository Participant (DP) services for retail customers, providing 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 Bank launched its credit card business in late 2001. By September 30, 2005, the bank had a total card base (debit and credit cards) of 5.2 million cards. The Bank is also one of the leading players in the "merchant acquiring" business with over 50,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments.

(iii) Treasury

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, corporates 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

28

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.

BUSINESS STRATEGY

HDFC BANK

mission is to be "a World Class Indian Bank", benchmarking themselves

against international standards and best practices in terms of product offerings, technology, service levels, risk management and audit & compliance. The objective is to build sound customer franchises across distinct businesses so as to be a preferred provider of banking services for target retail and wholesale customer segments, and to achieve a healthy growth in profitability, consistent with the Bank's risk appetite. Bank is committed to do this while ensuring the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance. Continue to develop new product and technology is the main business strategy of the bank. Maintain good relation with the customers is the main and prime objective of the bank.

HDFC BANK business strategy emphasizes the following: Increase market share in Indias expanding banking and financial services industry by following a disciplined growth strategy focusing on quality and not on quantity and delivering high quality customer service. Leverage our technology platform and open scalable systems to deliver Maintain current high standards for asset quality through disciplined credit risk more products to more customers and to control operating costs. management.

29

Develop innovative products and services that attract the targeted customers and Continue to develop products and services that reduce banks cost of funds. Focus on high earnings growth with low volatility.

address inefficiencies in the Indian financial sector.

QUALITY POLICY OF HDFC BANK

Security: The bank provides long term financial security to their policy. The bank does this by offering life insurance and pension products. Trust: The bank appreciates the trust placed by their policy holders in the bank. Hence, it will aim to manage their investments very carefully and live up to this trust. Innovation: Recognizing the different needs of our customers, the bank offers a range of innovative products to meet these needs. Integrity Customer centric People care one for all and all for one Team work Joy and simplicity.

30

3. 3 AN INTRODUCTION TO E BANKING

With cyber cafes and kiosks springing up in different cities access to the Net is going to be easy. E banking is the latest in this series of technological wonders in the recent past involving use of Internet for delivery of banking products & services. Even the Morgan Stanley Dean Witter Internet research emphasized that Web is more important for retail financial services than for many other industries.

E 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.

3.4 MEANING OF E BANKING

E banking is a concept which enables everyone to conduct business with a bank from the comfort of home or office. E banking means application of electronic technology towards transfer of funds through an electronic terminal, computer or magnetic tape to conduct various transactions like cash receipts, payments, transfer of funds, etc. It is often known as banking on net or e banking.

31

DEVELOPMENT OF E BANKING IN INDIA

The financial reforms that were initiated in the early 1990s and the globalization and liberalization measures brought in a completely new operating environment to the banks. The bankers are now offering innovative and attractive technology-based services and products such as Anywhere Anytime Banking, Tele-Banking, Internet Banking, Web Banking, Net Banking, Mobile Banking, etc. to their customers to cope with the competition. The process started in the early 1980s when Reserve Bank of India (RBI) set up two committees in quick succession to accelerate the pace of automation of operations in the banking sector. A highlevel committee was formed under the chairmanship of Dr. C. Rangarajan, then Governor of RBI, to draw up a phased plan for computerization and mechanisation in the banking industry over a five-year time frame of 19851989. The focus by this time was on customer service and two models of branch automation were developed and implemented. Having gained experience in the earlier mode of computerization, the second Rangarajan committee constituted in 1988 drew up a detailed perspective plan for computerization of banks and for extension of automation to other areas such as funds transfer, e-mail, BANKNET, SWIFT, ATMs, net banking, etc. The Government of India enacted the Information Technology Act, 2000 (generally known as IT Act, 2000), with effect from 17 October 2000 to provide legal recognition to electronic transactions and other means of electronic commerce. RBI had set up a Working Group on net banking to examine different aspects of net banking. The Group had focused on three major areas of net banking such as (1) technology and security issues, (2) legal issues and (3) regulatory and supervisory issues.

RBI had accepted the recommendations of the Working Group, and acc ordingly issued guidelines on E banking in India for implementation by banks. The Working Group has also issued a report on net banking covering different aspects of net banking.

32

Internet banking in India is currently at a nascent stage. While there are scores of companies specialising in developing internet banking software, security software and website designing and maintenance, there are few online financial service providers. ICICI bank is the first one to have introduced net banking for a limited range of services such as access to account information, correspondence and, recently, funds transfer between its branches. ICICI is also getting into e-trading, thus offering a broader range of integrated services to the customer.

Several finance portals for provision of non-banking financial services, e-trading and ebroking have come up. Commercial applications such as Electronic Bill Presentment (EBP) and Procurement systems may not be introduced in India immediately, but are likely to have a greater impact than the retail applications. The corporate sector is adequately computerized and has already recognized the important role of e-commerce in future. Increasingly, companies are setting up websites even where there are no immediate tangible benefits to them from doing so.

E BANKING IN INDIA RBI GUIDELINES

In India, internet banking or net banking is in rudimentary stage. In order to promote safety and soundness of internet banking activities, the RBI constituted a Working Group on E Banking. The Group issued guidelines in June 2001. The Group divided the internet banking products in India into 3 types based on the levels of access granted. They are Information Only System Electronic Information Transfer System Fully Electronic Transactional System.

33

ADVANTAGES AND DISADVANTAGES OF E BANKING Internet Banking also has its advantages and disadvantages. Below are mentioned the most popular advantages of using Internet Banking along with some unavoidable disadvantages. The advantages include Convenience - online banking sites never close; they're available 24 hours a day, seven days a week, and they're only a mouse click away; Portability you now have access to money whenever there is an emergency, whether or not you are in the country; Transaction speed - online bank sites generally execute and confirm transactions at the same rate or quicker than, ATM processing speeds; Effectiveness they offer sophisticated tools, including account aggregation, stock quotes and rate alerts to help you manage all of your assets more effectively. Reduction in workload - No more standing in long lines at the bank, eliminating endless paper based bank statements.

The disadvantages include ATMs; Start-up may take time - In order to register for your bank's online program, you will
34

Lack of Computerization - which relates to virtual banks, revolves around the lack of

 consuming;

probably have to provide ID and sign a form at a bank branch which can be time Learning curve - Banking sites can be difficult to navigate at first; Distrust of the User - the possibility of frauds, making errors etc. Problem of Security Various sites are not properly looked at to ensure whether

customers money is safe in cyber world or not.

TRADITIONAL BANKING VS E BANKING E banking or internet banking works much like traditional banking. The primary difference is that in net banking account and information is accessed, payments are made and statements reconciled using computer rather than paper or the phone to complete transactions. Instead of going down to local branch office when one bank online he/she can accomplish multiple tasks at once with the click of a button. E banking is rapidly becoming more and more popular as consumers recognize the advantages online banking has to offer. For one most banks charge fewer fees if you take advantage of their online banking services

E BANKING SERVICE AT HDFC BANK E banking is HDFC Bank's Internet Banking service. It provides up-to-the-second account information. E banking lets the customer manage his/her account from the comfort of his/her mouse - anytime, anywhere. Net Banking services provides access to account information, products and other services (including transactions of non-financial and financial in nature) as advised by the Bank from time to time to the customers through the website of the Bank. Net Banking Services also include the services for Demat account, Credit Cards and loan on the website of the Bank.
35

The HDFC Bank web site (www.hdfcbank.com) also features two versions of a demo facility - one "interactive" and the other "guided" - making it possible for even Internet illiterates to get comfortable with its services. On the downside, however, 'registration' for the service involves downloading of a form that needs to be posted/delivered to any of its branches - not exactly "web savvy" as we would call it. Also, the form itself requires Adobe Acrobat Reader to be installed and the file size will exceed 5.5 MB, which translates roughly into an hour or more of on-line time. Its 3-question FAQ page also assumes a high level of computer knowledge from users ... not consistent with the rest of the website.

36

CHAPTER 4

RESULT, ANALYSIS AND INTERPRETATION

37

STATEMENT 1 Demographic Profile Of The Respondents

Table no 1 Demographic Profile of the Respondents

Demographics

Number of Respondents

Percentage Respondents

Of

Age: 20 35 yrs 35 50 yrs 50 yrs and above 60 20 20 60 % 20 % 20 %

TOTAL Qualification: Graduate Post Graduate SSLC PUC Others TOTAL

100

100 %

35 40 7 18 0

35 % 40 % 7% 18 %

100 % 100

Occupation:

38

Student Professional Self Employed Employed Retired

25 25 18 20 12

25 % 25 % 18 % 20 % 12 %

TOTAL

100

100 %

Analysis From the data collected it was found majority of respondents that is 60% belonged to the age of 20 to 35 years, followed by the age group of 35 to 50 years and above. It was found that the majority of the respondents were graduates and post graduates . It was found that the majority of the respondents were students ,professional and employed people..

Interpretation

It can inferred that youth are using e banking facilities more than others It can be concluded that the majority of the respondents were knowledgeable and were well informed about the banking services.

39

STATEMENT 2:. What are your reasons for opting for services of HDFC bank

Table 2:. What are your reasons for opting for services of HDFC bank

Reason Service is good They provide security Cheaper service fees Effective network good customer relationship

Number of respondents 18 20 30 15 17

Percentage of respondents 18% 20 % 30% 15 % 17 %

Total

100

100 %

Analysis

From the data collected, it can be understand that most of the respondents are of the opinion that is 30% users opted HDFC bank because of cheaper service provided by them following by 20 % agreeing they provide security , 18 % agreeing service is good , 17 % saying good relation with the customer and 15 % on the opinion effective network Figure 1 :What are your reasons for opting for services of HDFC bank

40

30 30 25 20 20 15 10 5 0 service is good they provide security cheaper service fees effective network good relation 18 15 Series 1 17

INTERPRETATION: HDFC bank is providing many services to its customers It can be inferred that the HDFC bank is providing good services to its customers and customers are satisfied with their services It can be concluded that HDFC bank is very keen on providing good services for its customers

41

STATEMENT 3: TIME PERIOD SINCE THE HDFC BANKS SERVICES ARE BEING AVAILED

Table 3 Time period since the HDFC Banks services are being availed Percentage respondents 9% 18 % 31 % 42 % 100 % of

Time Period

Number of respondents

Less Than 2 years 2 5 years 5 10 years More Than 10 years Total

9 18 31 42 100

Analysis

From the data collected, it can be that the majority of the respondents that is 42% of the respondents have been HDFC Banks customer for more than 10 years, followed by 5 to 10 years with 31% of respondents.

42

Figure 2 . Time period since the HDFC Banks services are being availed

45 40 35 30 25 20 15 10 5 0 less than 2 years 2 - 5 years 5 - 10 years 9 18 31

42

Series 1

more than 10 years

Interpretation It can be inferred that most of the respondents are customers of HDFC bank for more than 10 years It can be concluded that the customers are well satisfied with banks services and facilities It can be concluded that bank have a good reputation among its customers

43

Statement 4: Awareness regarding E Banking Service provided by HDFC Bank

Table 4 : Awareness regarding E Banking Service provided by HDFC Bank Awareness Yes No Total Number of respondents 96 4 100 Percentage of respondents 96 % 4% 100 %

ANALYSIS From the data collected it was found that majority of the respondents that is 96% were aware of the net banking service provided by HDFC Bank while just 4% of the respondents were not aware of the same service.

44

Figure 3: Awareness regarding E Banking Service provided by HDFC Bank

90 80 70 60 50 40 30 20 10 0 YES 4 NO 81 Series 1

INTERPRETATION:

It can be concluded that majority of customers were well aware of E banking services provided by the bank

It can be inferred that HDFC bank banking among its customers

had taken enough measures to create awareness on e

45

Statement 5 :What are the e-banking services you use provided by the bank?

Table 5: What are the e-banking services you use provided by the bank? Number respondents 23 10 41 26 of Percentage respondents 23 % 10 % 41 % 26 % of

Services

Transfer funds between accounts Online tax payment Pay bills check account balance

Total

100

100 %

Analysis

Of the data collected it was found that about 41% used e banking of HDFC bank for pill payment following 26 %to check account balance , 23 %for transferring fund and remaining 10 % for online tax payment money transactions .

46

FIGURE 4 What are the e-banking services you use provided by the bank?

45 40 35 30 25 20 15 10 5 0 Fund transfer

41

26 23 Series 1 10

pays bill

online tax payment

check account balance

Interpretation:

It can be inferred that most of the customers prefer e banking for payment of bills It can concluded that HDFC banks customers log onto to their account for various s ervices provided by the bank

47

Statement 6 : Do you prefer e banking over money transactions

Table 6 :Do you prefer e banking over money transactions

Preference

Number of respondents

Percentage respondents 65 % 35 % 100 %

of

Yes No Total

65 35 100

Analysis Of the data collected it was found that about 65% of the respondents are preferring E banking over money transaction and 35% is not preferring over money transactions .

48

Figure 5: Do you prefer e banking over money transactions

70 60 50 40 30 20 10 0

65

35 Series 1

Series 1 YES NO

Interpretation:

It can be inferred that the majority of the respondents prefer using E banking service rather than dealing with money transactions .

It can be concluded tha HDFC bank is providing e banking facilities rather than money transactions which is very useful to its customers

49

Statement 7 : Accessibility of E Banking Facility provided by HDFC Bank

Table 7: Accessibility of E Banking Facility provided by HDFC Bank Percentage respondents 81 % 19 % 100 % of

Accessibility

Number of respondents

Yes No Total

81 19 100

Analysis

Of the data collected it was found that about 81% of the respondents had accessed the E banking service provided by the HDFC Bank while 19% of the respondents said that they had not accessed the same.

Figure 5.: Accessibility of E Banking Facility provided by HDFC Bank

50

100 80 60 40 20 0

81

Series 1 19 Series 1 YES NO

Interpretation:

It can be inferred that customers can use e banking easily It can be inferred that HDFC bank creates the e banking services which is accessible to its customers

It can be concluded that HDFC bank is very much keen on providing the accessibility of e banking to its customers

51

Statement 8 : How important would E Banking be in your daily banking activities?:

Table 8 : How important would E Banking be in your daily banking activities?:

Importance in daily banking activities Extremely significant Significant moderately significant less significant Not significant at all Total

Number respondents 10 25 26 33 6 100

of Percentage respondents 10% 25 % 26 % 33 % 6% 100 %

of

Analysis

It was found that for only 10 % customers e banking is extremely significant 6 % are saying it is not at all significant and ramaining 84 % are on the opinion that it is significant , less significant and moderately significant

Figure 6 : How important would E Banking be in your daily banking activities?:

52

35 30 25 20 15 10 5 0 extremely significant significant moderately significant 25 26

33

Series 1 10 6

Less Significant

not at all significant

Interpretation:

It can be inferred that importance of e banking in customers daily banking varies according to their needs

It can be inferred that customers dealing with more money transactions their importance will increase

It can be concluded that HDFC bank provide good facilities so that customers significance level of using e banking goes on increasing

53

Statement 9:. Do you think that E Banking is convenient?:

Table. 9 : Do you think that E Banking is convenient?:

Agreement

Number of respondents

Percentage respondents 72 % 28 % 100 %

of

Yes No Total

72 28 100

Analysis

Of the data collected it was found that the majority of the respondents that is 78% is convenient and 28 % says it is not convenient

54

Figure 7. Do you think that E Banking is convenient?:

80 70 60 50 40 30 20 10 0 YES NO 28 72 Series 1

INTERPRETATION:

It can be inferred that the majority of the respondents felt that e banking is convenient. Because it saves a lot of time by without regularly visiting the bank branches .

It can be concluded that HDFC designed its e banking website so that it is fitting in well with the customers need

55

STATEMENT 10 Are you satisfied with the charges imposed on e banking services of HDFC bank

Table: 10 .Are you satisfied with the charges imposed on e banking services of HDFC bank

Agreement

Number of respondents

Percentage respondents 63 % 37 % 100 %

of

Yes No Total

63 37 100

Analysis

Of the data collected it was found that the most of the respondents that is 63% was satisfied with charges imposed on e banking and 37 % was not satisfied It can be inferred that the majority of the respondents are satisfied with charges imposed on e banking

56

Figure 8 .Are you satisfied with the charges imposed on e banking services of HDFC bank

70 60 50 40 30 20 10 0 Satisfied Not satisfied 63 37 Series 1

Interpretation:

It can be inferred that most respondents are satisfied with the charges imposed on the e banking. It can be concluded that charges imposed on HDFC banks e banking facilities will be less when compared to other banks e banking services

57

STATEMENT 11 Are the E banking services being offered adequate

Table:11 . Are the E banking services being offered adequate

Agreement

Number of respondents

Percentage respondents 63 % 37 % 100 %

of

Yes No Total

63 37 100

Analysis

Of the data collected it was found that 60 % respondents agreed that e banking is adequate and 40% did not agreed the situation

58

Figure 9. Are the E banking services being offered adequate

60 50 40 30 20 10 0 YES NO 60 40 Series 1

Interpretation:

It can be inferred that most of the people agreed e banking services offered are adequate It can be concluded that HDFC bank provides quality e banking facilities to its customers

59

STATEMENT 12: . How do you rank e banking facilities of HDFC in compare to other banks

Table 12 . How do you rank e banking facilities of HDFC in compared to other banks

Difficulties excellent above average average below average poor Total

Number respondents 23 31 30 14 2 100

of Percentage respondents 23% 31% 30 % 14 % 2% 100 %

of

ANALYSIS

It was found that the 23 % ranked e banking facilities as excellent , 30 % ranked above average , 31 % ranked as average facilities , 14% as below average facilities and 2% as very poor e banking facilities

60

Figure 10 . How do you rank e banking facilities of HDFC in comparison to other banks

35 30 25 20 23

31

30

14 15 10 5 0 excellent above average average below average poor 2

Series 1

INTERPRETATION It can be inferred that most of the customers rank e banking facilities of HDFC bank as an above average one It can be inferred that E banking facilities offered by HDFC bank are very reliable to the customers It can be concluded that quality and cheaper service fees would be reason for the good ranking of the bank

61

STATEMEN 13 Have you had difficulty logging onto the bank's website

Table 13 :Have you had difficulty logging onto the bank's website

Frequency

Number of respondents

Percentage respondents 12% 23% 25% 40%

of

All the time Sometimes infrequently not at all

12 23 25

40 Total 81 100 %

Analysis

It was found that majority of the respondents that is 40 % agreed that they did not had any difficulty while logging onto the banks website following by 25 % agreeing infrequently , 23 % sometimes and 12 % agreeing all the time

62

Figure 11:. Have you had difficulty logging onto the bank's website

40 40 35 30 25 20 15 10 5 0 At all times sometimes infrequently Not at all 12 23 25

Series 1

INTEPRETATION It can be inferred that most of the did not find any difficulties while logging onto the account It can be inferred that e banking website created by HDFC bank is a good one It can be concluded that HDFC banks website have all key elements of an effective one

63

Statement 14 On which occasions would you find difficulties while logging

Table 14 On which occasions would you find difficulties while logging

Difficulties

Number respondents 11 33 40 7 and 9

of Percentage respondents 11% 33 % 40 % 7% 9%

of

Logging in to your account Making transactions Security issues Unable to understand webpages Regularly Password changing the IPIN

Total

100

100 %

Analysis It was found that the majority of the respondents that is 40% said that security issues was the major difficulty that they faced while using the E Banking service, followed by 34% of the respondents who felt that making transactions with the bank through E Banking was difficult. However, 8% of the respondents faced difficulty in understanding the webpages and 7% of the respondents felt that changing the IPIN and Password regularly was difficult.

Figure 12 On which occasions would you find difficulties while logging

64

40 40 30 20 10 0 33 11 9

Series 2 Series 1

Series 1 Series 2

Interpretation:

It was inferred that the majority of the respondents regarded the security issues as the major difficulty that they faced while using the E Banking service. It can be concluded that HDFC banks e banking find a security issues due to more people logging onto it

Statement 15 E Banking service being better than traditional banking

65

Table 15: Agreement regarding Net Banking service being better than traditional banking Percentage respondents 64 % 36 % 100 % of

Agreement

Number of respondents

Yes No Total

64 36 100

Analysis Of the data collected it was found that the majority of the respondents that is 64% respondents agreed that net banking is better than the traditional banking while 36% of the respondents disagreed with the statement.

Figure 14: Agreement regarding Net Banking service being better than traditional banking

66

70 60 50 40 Series 2 30 20 10 0 YES NO 64 Series 1 36

Interpretation:

It can be inferred that the majority of the respondents felt that the e banking service was better than traditional banking. It can be concluded that most of the customers are on the view that e banking can provide more facilities than traditional banking

HYPOTHESIS TESTING

H0 : There lies no significant relationship between the types of e banking services

67

provided by the bank and occupation of the customer

H1 :

There lies significant relationship between the type of e banking services

provided by the bank and occupation of the customer

At 5 % significant level the degree of freedom is given by (r1) x (c1) (51) x (41) Calculated value = 4.506 Table value = 21.03 Inference As the calculated value is lesser than the table value , HO is accepted and hence it is concluded that H0 : There lies no significant relationship between the types of e banking services provided by the bank and occupation of the customer

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CHAPTER 5

SUMMARY OF FINDINGS , CONCLUSIONS AND RECOMMENDATIONS

FINDINGS

1) Majority of the respondents were knowledgeable and well informed about the E banking services

2) Majority of the respondents agreed HDFC bank services are cheap

3) Most of customers respondents have been HDFC banks customers for more than 10 years

4) Majority of customers were aware of E banking services of HDFC bank

5) Most of respondents used E banking to pay bills

6) Most of respondents preferred e banking over money transactions

69

7) Most of the respondents agreed E banking is accessible to them

8) Most of the respondents agreed E banking had moderate significant in their daily activities

9) Majority of respondents agreed E banking is convenient

10) Most of the respondents are satisfied with charges implied on E banking services

11) Most of the respondents agreed services offered by the bank are adequate

12) HDFC banks users rate the E banking facilities as an average one when compared to other banks

13) Most on respondents did not find difficulties while logging onto the account

14) Majority of respondents faced security as a major difficulty they faced while using E banking

15) Most of the respondents felt that E banking service was better than traditional banking

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SUGGESTIONS

1 . Effective awareness on E banking :

Effective awareness campaigns should be

undertaken by the banks to make their customers more aware of E banking service. Advertisements

2 . Use upgraded technology : The bank should adopt more upgraded techniques to make their customer feel more secure while accessing their accounts. The security technologies like firewall , antivirus and intrusion detection or prevention etc must should be adopted by the bank

3 . Provide more facilities : The bank should make an effort to provide a from where the customers can access different accounts at single time without extra charge
71

4. Introduce new services : The HDFC bank should introduce more services which can be accessed through E Banking advice on investment, TDS, etc.

5 . Provide discount on shopping : Provide discounts on shopping through EBanking . So that customers will use e banking facilities for shopping

CONCLUSION

The introduction of new technology has been changing the attire of banking. Technology is aiding globalization and integration of financial markets across the globe. Customers expectations for new products and alternatives delivery channels have been rising. Banks are under pressure to offer today, what customers would be expecting tomorrow. Thanks to innovations and spread of new technology, banks today offer the customer a choice to conduct his business across the counter, over phone or via a computer. The introduction of new instruments such as ATM, retail Electronic Funds Transfer (EFT) and Electronic Clearing Services (ECS) have all helped in developing an effective, efficient and speedy payment and settlement systems.

In literature, the major emphases have laid on significant innovation and investment is under way that could lead to very rapid expansion in fully electronic business to business and consumer to consumer payments in near time. While the pace of change in these markets makes it difficult to determine, eventually these innovations will generate substantial efficiencies in retail payment system. Bank regulators are paying significant attention to appropriate risk management of new technology. Evidence reveals a sense of urgency about the, adoption of new technology and reflects substantial competitive pressure to act quickly.

72

The objective of the study was to comprehend the E Banking service provided by HDFC Bank. The research was descriptive in nature. The universe of the study was the customers of the HDFC Bank. The survey was carried out on 100 respondents. In this research for data analysis tools used were tables and graphs. Majority of the respondents were aware of the E Banking service provided by the bank and availed the various services offered through E banking. Majority of the respondents felt that net banking facility have enabled the customers to perform various banking transactions online. It is hoped that the survey findings will have some useful applications.

Annexure

1. What are your reasons for opting for services of HDFC bank a) Service is good ( ) c) Cheaper service fees ( ) e) Good relationship with the customer 2. Time period since the HDFC Banks services are being availed a) Less Than 2 years ( ) c) 5 10years ( ) b) 2 5 years ( ) d) More Than 10 years ( ) b) They provide security ( ) d) Effective network

3. Are you aware of E Banking Service provided by HDFC Bank

a) YES ( )

b) NO ( )

73

4.

What are the e-banking services you use provided by the bank? a) Fund transfer ( ) c) Online Tax payment ( ) b) Pay bills( ) d) Check account balance( )

5. Do you prefer e banking over money transactions a) YES ( ) b) NO ( )

6. How frequently do you use E Banking service in a month

a) Less than once ( ) c) 3 to 8 times ( )

b) 1 to 3 times ( ) d) 8 to 15 times ( )

7. How important would E Banking be in your daily banking activities?:

a ) Extremely significant ( ) b) Significant ( ) c) moderately significant ( ) d) Less significant ( ) Not significant at all ( )

8. Do you think that E Banking is convenient?:

a) YES ( )

b) NO ( )

9. Are you satisfied with the charges imposed on e banking services of HDFC bank

74

a) Satisfied ( ) 10. Are the E banking services being offered adequate

b) Not Satisfied ( )

a. a) YES (

b) NO (

11. Accessibility of Net Banking Facility provided by HDFC Bank

b. a) YES ( )

b) NO ( )

12. How do you rank e banking facilities of HDFC in compare to other banks

a) Excellent ( ) d) Below average (

b) above average ( ) ) e) Poor

c) average (

13. Have you had difficulty logging onto the bank's website

a) At All times( ) c) Infrequently ( )

b) Sometimes ( ) d) Not at all ( )

14. Do you face any problems in e banking

75

Yes

( )

No ( )

If yes on which of the following occasions

a) Logging in to your account ( ) ) c) Security issues ( )

b) Making transactions(

d) Unable to understand webpages ( )

e) Regularly changing the PIN and Password ( )

15 .Agreement regarding E Banking service being better than traditional banking a) YES ( ) b) NO ( )

76

Appendix

E services Transfer funds

banking Students between 8 7 6 account 2

Professiona Employed ls 9 8 4 4 3 5 6 4

Self employed 5 5 5 5

Retired 3 3 3 5

Online tax payment Pays bill Check balance

CROSS TABULAR CALCULATION

TOTAL 15 8 23 17 8 25 8 10 18 10 10 20 6 8 14 56 44 100

O 15

E 12.88

(OE) 2.12

(OE)2 4.494

( O E ) 2/ E .349

77

17 8 10 6 8 8 10 10 8

14 10.080 11.2 7.84 10.12 11 7.92 8.8 6.16

3 -2.08 -1.2 -1.84 -2.12 -3 2.08 1.2 1.84

9 4.326 1.4 3.386 4.494 9 4.32 1.44 3.380

.643 .429 .129 .432 .444 .818 .546 .164 .550 4.504

78