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Information Technology has provided self-service facilities from where prospective customers

can easily complete their account opening documents directly online.Information technology in

India banking system and operation has been acknowledged as the life wire of banks in the

financial sector as it promotes and facilitates the performance of banks in the country. This

therefore calls for as a result, there is a pre-requisite need to embrace information technology. It

is in view of this that this research work attempts to examine the impact of information

technology on the performance of banks in India today. Information communication technology

has played a prominent role in all areas of human life but the breakthrough of social progress and

the vigorous development in technology has immeasurably increased the role of information in

every facet of human life.

It has also improve the overall processes of commercial banks performance in India, via the use

of innovation and creativity pertaining to information technology by commercial banks, this as a

result has led to smooth, easy and convenient way of banking with adequate and quality service

to customers, which has also paved way for efficiency and effectiveness to banking in

India.Banking operation in India is becoming highly information technology based this is

because of its inter-sectorial link and as it appears to be reaping from technology revolution, as it

is seen by its application in all areas of its activities (Akinuli, 1999).

According to Laudon and Laudon, (1991), opined that managers of banks cannot ignore

information technology because it plays a significant role in contemporary organization.The

application of information technology concept, techniques, policies and implementation

strategies to commercial banking services has therefore become a subject of fundamental

importance as it concerns all banks and a prerequisite for local and global competitiveness.


Information Technology is seen as the book-bone of the financial system in the economy and

could also be referred to as the life-line of the economy therefore the success of an economy is

solely based on its financial system which out rightly is reference still being made to the past, to

do with the banking performance in the economy.A broad opening in technology has been

experienced in the world for banks and they are currently taking advantage of these innovations

to provide better improved customer and more efficient services that will enhance productivity

(Akinuli, 1999; Ovia,2005).

This project will therefore find out the role or impact which the adaption ofinformation

technology has had on the vast majority operations of commercial banks in India. It will provide

a basis or proposed recommendations which can be re-adjust to the threats, opportunities,

features technological competition and contingencies of technological banking on commercial

banks in India.According to Milgrom and Roberts (1990) they argued that to be successful, firms

typically need to adopt information technology as part of a “system” or “cluster” of mutually

reinforcing organizational approaches


The general purpose of this study is to examine the role of information technology in commercial

banking in India. Icici Bank is used as a case study for this research project. The study

specifically aims to determine the significant role of information technology in commercial

banking in India. It will examine how information technology has enhanced the growth of

commercial banks in India. Determine the effect of information technology in the process and

operation of Indian banks. It will evaluate the extent to which job satisfaction of the banks has

been influenced and affected ever since the introduction of modern information technology on

commercial banks. In this regard the main objectives of this study will include:

i. To determine the extent to which information technology has contributed to

customer satisfaction and banks performance.

ii. To determine how skillful and knowledgeable the staff are in the use of information

technology in commercial banks.

iii. To determine whether there is an increase in the level of efficiency and

effectiveness of operations since the introduction of information and electronic

technologies in commercial banking system.


i. To what extent does information technology have any effect on the performance of

commercial banks in India?

ii. To what extent has information technology devices (computer, office automation) help

bank staffs in the operations of their duties.


In other to carry out this research the following hypotheses have been postulated.
1. The Null (H0)Hypothesis

2. The Alternate (H1)Hypothesis

The null hypothesis states a conjecture in a negative form while the alternate states a conjecture

in a positive form (Izedonmi, 2005). For the purpose of this study, the hypothesis testing shall be

stated thus:


This research is concerned with the role of information technology on commercial banks in India

using Icici Bank for the case study. These bank was certified worthy for the research due to the

wide spread branch network and high indulgence in I.T practices. The bank performance is

weighted before and after the incorporation of information technology into the system.

We are also concerned with how the employees and the customers are reacting to this new

innovation. We will also consider if investment made in information technology was worth the

end result achieved. We will also endeavor to expatiate on the new facilities leading to the

assimilation of information technology in the banking industry in India.


Information technology has a major driving force to the development of technology which has

impacted positively in virtually every sector of the Indian economy.

In the banking sector, financial institutions use computers in their day to day operations in order

to provide quality of service to their customers via the use of modern day technology.

Information technology has also improved customers knowledge about the use of computer and

other gadgets through which customers of a bank can access their bank account and make other

payments anywhere in the world.

Information technology has also enhanced government work via reliable infrastructure, skilled

human resources, open government and other essential issues of capacity building and also

developing centres to improve IT capabilities especially at zonal, state and local levels.


1.8.1 In order to access the perception of banking customers in India with respect to the banking

services rendered, a questionnaire survey is conducted. Some questionnaires will also be issued

to the bank managers, employees and I.T staffs in order to get an appreciation of what type of I.T

systems and electronic application services were available in the chosen banks. The responses

are measured with a five-point rating scale, where (SA)=5 Strongly Agree, (A)=4 Agree, (N)=3

Neutral, (D)=2 Disagree, (SD)=1 Strongly Disagree. The information will then be retrieved from

the bank after a stipulated period of time. The information will be observed, analyzed, compared,

contrasted and conclusions will be arrived at. These conclusion will be derived from the

questionnaires and most likely to provide answers to questions posed by this research. This will

help to clarify and broaden our sense of direction in this research work.

This research work will be based on the importance and role of information technology in

commercial banking in India using Icici Bank. Head Office as a case study. The respondent will

comprise of bank staff and customers numbering 1-100.It will examine the extent to which banks

have embraced information technology (office automation, computers) as well as determine the

role information technology has had on the customer (i.e. if they prefer the old ways of banking

operations or if they prefer the new and modern ways of banking operations. This study may be

limited due to slow response of some banks in giving out information and low co-operation on

the part of the members of the public.


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