Customer satisfaction of ebanking/online banking of SBI

PMSA PTM ARTS & SCIENCE COLLEGE Page 1
A STUDY ON CUSTOMER SATISFACTION OF INTERNET BANKING
WITH SPECIAL REFERENCE TO THE CUSTOMERS OF
SBI,PONGANADU BRANCH
PROJECT REPORT
Submitted to the University of Kerala in partial fulfilment of the requirement for the award
of the Degree of Bachelor of Commerce.
SUBMITTED BY
Muhammed Sajid.N Reg No.: 159 12814019
Group Members: 1.Revathy.T Reg No.: 159 12814028
2.Fathima.M.Nazar Reg No.: 159 12814011
Examination Code:……………………………….
Subject Code:…………………………………….
Under the Guidance and Supervision of
Mr.Shibi Chandradas.M.S
Assistant Professor , DCMS, PMSA PTM Arts and Science College
DEPARTMENT OF COMMERCE & MANAGEMENT STUDIES
P.M.S.A P.T.M ARTS & SCIENCE COLLEGE
KADAKKAL, KOLLAM
MARCH - 2015

CHAPTER I
INTRODUCTION
Customer satisfaction is measured at the individual level, but it is almost always
reported at an aggregate level. It can be, and often is, measured along various dimensions. A
hotel, for example, might ask customers to rate their experience with its front desk and check-
in service, with the room, with the amenities in the room, with the restaurants, and so on.
Customer satisfaction, a term frequently used in marketing, is a measure of how products and
services supplied by a company meet or surpass customer expectation. Customer satisfaction
is defined as "the number of customers, or percentage of total customers, whose reported
experience with a firm, its products, or its services exceeds specified satisfaction goals." In a
survey of nearly 200 senior marketing managers, 71 percent responded that they found a
customer satisfaction metric very useful in managing and monitoring their businesses.
"Customer satisfaction provides a leading indicator of consumer purchase intentions and
loyalty."Customer satisfaction data are among the most frequently collected indicators of
market perceptions. Customer service is the provision of service to customers before, during
and after a purchase. According to Turban "Customer service is a series of activities designed
to enhance the level of customer satisfaction that is, the feeling that a product or service has
met the customer expectation." Customer satisfaction is an ambiguous and abstract concept
and the actual manifestation of the state of satisfaction will vary from person to person and
product/service. The state of satisfaction depends on a number of both psychological and
physical variables which correlate with satisfaction behaviors such as return and recommend
rate. The level of satisfaction can also vary depending on other options the customer may
have and other products against which the customer can compare the organization's services.
Online banking is an electronic payment system that enables customers of a financial
institution to conduct financial transactions on a website operated by the institution, such as a
retail bank, virtual bank, credit union or building society. Online banking is also referred
as Internet banking, e-banking, virtual banking and by other terms.
To access a financial institution's online banking facility, a customer with Internet
access would need to register with the institution for the service, and set up some password
for customer verification. The password for online banking is normally not the same as
for telephone banking. Financial institutions now routinely allocate customers numbers,
whether or not customers have indicated an intention to access their online banking facility.

Customers' numbers are normally not the same as account numbers, because a number of
customer accounts can be linked to the one customer number. The customer can link to the
customer number any account which the customer controls, which may be cheque, savings,
loan, credit card and other accounts. Customer numbers will also not be the same as any debit
or credit card issued by the financial institution to the customer.
To access online banking, a customer would go to the financial institution's secured
website, and enter the online banking facility using the customer number and password
previously setup. Some financial institutions have set up additional security steps for access
to online banking, but there is no consistency to the approach adopted.
The proliferation and penetration of internet has opened new horizons and scenarios
for the retail banking industry.The retail banks are now providing their products and services
through the electronic medium; e-banking.E-devolepments and emerging and advancing
rapidly in all areas of financial intermediation and financial markets: e-finance,e-money,e-
banking,e-brokering,e-insurance,e-exchanges and even e-supervision.The new information
technology is turning in to the most important factor in the future devolepment of
banking,influencing bank’s marketing and business strategies.In recent years,the adoption of
e-banking began to occur quite extensively as a channel of distribution for financial services
due to rapid advances in IT and intensive competitive banking markets.The driving forces
behind the rapid transformation of banks are influential changes in the economic
environment: innovations in information technology,innovations in financial products, and
consolidation of financial markets,deregulation of financial intermediation etc.These and
other make it complicated to design a bank’s strategy,which process is threatened by
unforeseen devolepments and changes in the economic environment and therefore,strategies
must be flexible to adjust to these changes.The financial services market is continuing to
change rapidly,which brings in to question whether traditional banks,as they are now
structured,will acyually continue to exist by the end of the decade or even survive through the
next five years.Competiton has been increasing for some years within traditional financial
centers,amongst thebanks themselves.A significant challenge come from international banks
offering technology based financial services across geographical boundaries and thereby
competing with traditional banks for their best business within their own back yard.Internet
banking is a kind of system that enables financial institutions,customers,individuals or businesses,to
access accounts,transact business,or obtain information on financial products and services
through the internet.Online banking (Internet banking) allows customers to conduct financial

transactions on a secure website operated by their retail or virtual bank,credit union.Internet
banking allows customers to perform a wide range of banking transactions electronically via
the bank’s website.With the devolepment of asynchronous technologies and secured
electronic technologies,almost all banks have come forward to use Internet Banking both as
transactional as well as an informational medium.The registered internebanking users can
now perform common banking function such as
 Payment of bills
 Transferring funds to any part of the world
 Checking the balance
 Downloading and printing statements
 Opening various accounts such as Reccuring deposite,Fixed deposite etc.
 Payment of credit cards
 Stop payment of cheques
 Reporting lost cards
 Requesting cheque books
 Applying loans
 Downloading applications
Many have opened their own shopping sites which enables customers to buy from the
website at the ease of sitting back at home.
The most general type of electronic banking in our time is banking via the internet,in
other words Internet Banking.This type of banking allows consumers to check balances in
their accounts,transfer funds and order electronic bill payments.Internet banking systems
allowing customers to apply for loans,trade stocks or mutual funds,and even view actual
images of their cheques or deposit slips.The services available for Internet banking vary from
bank to bank.Nowadays the internet is the main channel for electronic banking.Internet
banking offers many benefits to banks and their customers.The main benefits to banks are
cost savings,reaching new segmentsof the population,efficiency,enhancement of the bank’s
reputation and better customer service and satisfaction.To customers Internet banking offers
also new value.With the help of internet,banking is no longer bound to time or
geography.Consumers all over the world have relatively easy access to their accounts 24
hours per day,seven days a week.It makes available to customers a full range of services
including some services not offered at Branches.

Dimensions of online banking
1)Customer to bank
Online banking or e-banking is basically internet based.Banking products and services
such as deposits,remittances,credit cards etc. as well as all important banking informations
can be made available with easy access to customers on Internet.Customers can make use of
these services with no restricted office hours,no queues,no tellers and no waiting.Several
network innovations for online banking can be visualized such as smart card,electronic data
interchange etc.
2)Bank to bank
This form of electronic banking is for transacting inter-bank transactions such as
money-at-call etc.This type of e-banking is restricted to banks only.Hence it is well secured
and unauthorized acces is less.
3)Electronic central banking
Under this e-central banking all banks within the purview of a Central bank are
interconnected on extranet to facilitate clearing of cheques,management of cash reserves,open
market operations,discounting of bills etc.In fact,the Central bank has to be connected with
government treasury on extranet to carry out its functions as an agent of the government.
4)Intranet procurement
For the transactions that are internal to a bank,between the bank and its branches and
subsidiaries,intranet procurements of banking is required.On the other hand ,extranet permits
a bank to have full control over the users of intranet and the information to be transmitted.
In this study,we deals with the Customer to Bank e-banking and which is the only
online banking facility which is available to the customers of a bank.

Statement of the problem
In traditional banking,the customer has to visit the branch of the bank in person to perform
the basic banking operations,viz.,account enquiry,fund transfer,cash withdrawals etc… But
e-banking enables the customers to perform the basic banking transactions by sitting at their
office or homes through viewing their account details and perform the transactions through
PC,lap top or mobile phone.Unfortunately most of the customers are unaware about the
e-banking facility.It is due to the lack of e-literacy.Only a few percentage of the total
customers of the bank uses online banking.The online banking users are also not confident
about the security due to the hackers who hacks the bank’s website.Whatever it is,banks
doesn’t offer 100 percentage security in online transactions.
Importance of the study
Modern banking is high-tech,electronic and tech-savy.Banking institutions are
adopting most modern technology to deliver high value added and customized services at the
doorstep of the customers round the clock.Using an ATM,customers can access their bank
accounts inorder to make cash withdrawals,get debit card cash advances and check their
account balances as well as purchase prepaid mobile phone credit.If the currency being with
drawn from the ATM is different from that which the bank account is denominated in (eg :
Withdrawing Japanese yen from a bank account containing US dollars),the money will be
converted at an official wholesale exchange rate.Thus,ATMs often provide one of the best
possible official exchange rates for foreign travelers and are also widely used for this.Though
there is deliberate attempt from banks to propogate and penetrate internet banking,it is seen
that only a fraction of customers are using Internet banking services.There are diverse hidden
risks inherent in Internet Banking which de motivates a prospective customer to use
it.Existing literature reveals that studies conducted on the topic are scanty.
Need for the study
 Customer Satisfaction is very essential for every Service to survive in the market.
 Customer Satisfaction could help the business by placing future demand to the
company
 Customer Satisfaction gives passing the words of mouth to other potential customers.
 Customer Satisfaction is very Important for the company to take care of the customers
and make them to satisfy.

Objectives of the study
1. To assess the impact of service quality dimensions on customers
satisfaction in E-banking.
2. To assess the impact of perceived value of e-banking service on customers
satisfaction.
3. To identify the most widely used application of internet banking.
4. To find out the reasons for preferring internet banking.
5. To asses the brand perception on customer satisfaction in e-banking.
6. To asses the service quality of e-banking.
7. To find out the drawbacks of e-banking.
8. To determine the factors which constitute e-banking functionality.
9. To reveal the adoption of e-banking factors.
Research methodology
The study is based on primary data collected through a structured questionnaire
widely circulated among the customers of State Bank Of India,Ponganadu Branch.Secondary
data was also collected from websites,annual reports,text books,magazines,journals etc..
Scheme of presentation
1. First chapter is introduction.
2. Second chapter deals with industry & company profile.
3. Third chapter is review of literature
4. Fourth chapter is analysis and interpretation.
5. Fifth and the last chapter deals with findings,suggestions and conclusion.

Limitations of the study
1. Period given for the project work is limited.
2. The study is restricted only to selected area,so it cannot be generalized.
3. Since the research is based on the sample respondents,the accuracy of the research
may be affected.
4. Another major limitation of this research was the inadequacy of knowledge that most
bank customers had about e-banking especially regarding the internet banking and
tele-banking delivery channels.
5. All research make some assumptions at some stages in order to proceed further.
However, not all assumptions made may beright and hence this is another limitation
as the incorrect assumptions may lead to testing of hypotheses on the wrong footing
and hence incorrect recommendations and conclusions.

CHAPTER II
INDUSTRY & COMPANY PROFILE
Industry profile
Banking in India originated in the last decades of the 18th century. The first banks
were The General Bank of India, now which started in 1786, and Bank of Hindustan , which
started in 1790; both are now defunct. The oldest bank in existence in India is the State Bank
of India , which originated in the Bank of Calcutta in June 1806, which almost immediately
became the Bank of Bengal. This was one of the three presidency banks, the other two being
the Bank of Bombay and the Bank of Madras , all three of which were established under
charters from the British East India Company. For many years the Presidency banks acted as
quasi-central banks, as did their successors. The three banks merged in 1921 to form the
Imperial Bank of India , which, upon India's independence, became the State Bank of India in
1955.
History of banking in India
Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848
as a consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865
and still functioning today, is the oldest Joint Stock bank in India.(Joint Stock Bank: A
company that issues stock and requires shareholders to be held liable for the company's debt)
It was not the first though. That honor belongs to the Bank of Upper India, which was
established in 1863, and which survived until 1913, when it failed, with some of its assets and
liabilities being transferred to the Alliance Bank of Simla. When the American Civil War
stopped the supply of cotton to Lancashire from the Confederate States, promoters opened
banks to finance trading in Indian cotton. With large exposure to speculative ventures, most
of the banks opened in India during that period fey and lost interest in keeping deposits with
banks. Subsequently, banking in India remained the exclusive domain of Europeans for next
several decades until the beginning of the 20th century. Foreign banks too started to arrive,
particularly in Calcutta, in the 1860s. The Comptoire d'Escompte de Paris opened a branch in
Calcutta in 1860, and another in Bombay in 1862; branches in Madras and Pondicherry, then
a French colony, followed. HSBC established itself in Bengal in 1869. Calcutta was the most
active trading port in India, mainly due to the trade of the British Empire, and so became a
banking center. The first entirely Indian joint stock bank was the Oudh Commercial Bank,
established in 1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank,
established in Lahore in 1895, which has survived to the present and is now one of the largest

banks in India. Around the turn of the 20th Century, the Indian economy was passing through
a relative period of stability. Around five decades had elapsed since the Indian Mutiny, and
the social, industrial and other infrastructure had improved. Indians had established small
banks, most of which served particular ethnic and religious communities. The presidency
banks dominated banking in India but there were also some exchange banks and a number of
Indian joint stock banks. All these banks operated in different segments of the economy. The
exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian
joint stock banks were generally under capitalized and lacked the experience and maturity to
compete with the presidency and exchange banks. This segmentation let Lord Curzon to
observe, "In respect of banking it seems we are behind the times. We are like some old
fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome
compartments." The period between 1906 and 1911, saw the establishment of banks inspired
by the Swadeshi movement. The Swadeshi movement inspired local businessmen and
political figures to found banks of and for the Indian community. A number of banks
established then have survived to the present such as Bank of India, Corporation Bank, Indian
Bank, Bank of Baroda, Canara Bank and Central Bank of India. The fervour of Swadeshi
movement lead to establishing of many private banks in Dakshina Kannada and Udupi
district which were unified earlier and known by the name South Canara district. Four
nationalised banks started in this district and also a leading private sector bank. Hence
undivided Dakshina Kannada district is known as "Cradle of Indian Banking". During the
First World War (1914–1918) through the end of the Second World War (1939–1945), and
two years thereafter until the independence of India were challenging for Indian banking. The
years of the First World War were turbulent, and it took its toll with banks simply collapsing
despite the Indian economy gaining indirect boost due to war-related economic activities.
Post independence era
The partition of India in 1947 adversely impacted the economies of Punjab and West
Bengal, paralyzing banking activities for months. India's independence marked the end of a
regime of the Laissez-faire for the Indian banking. The Government of India initiated
measures to play an active role in the economic life of the nation, and the Industrial Policy
Resolution adopted by the government in 1948 envisaged a mixed economy.
This resulted into greater involvement of the state in different segments of the economy
including banking and finance. The major steps to regulate banking included:

 The Reserve Bank of India, India's central banking authority, was established in April
1934, but was nationalized on January 1, 1949 under the terms of the Reserve Bank of
India (Transfer to Public Ownership) Act, 1948 (RBI, 2005b).
 In 1949, the Banking Regulation Act was enacted which empowered the Reserve
Bank of India (RBI) "to regulate, control, and inspect the banks in India".
 The Banking Regulation Act also provided that no new bank or branch of an existing
bank could be opened without a license from the RBI, and no two banks could have
common directors.
Nationalisation
Despite the provisions, control and regulations of Reserve Bank of India, banks in
India except the State Bank of India or SBI, continued to be owned and operated by private
persons. By the 1960s, the Indian banking industry had become an important tool to facilitate
the development of the Indian economy. At the same time, it had emerged as a large
employer, and a debate had ensued about the nationalization of the banking industry. Indira
Gandhi, then Prime Minister of India, expressed the intention of the Government of India in
the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts
on Bank Nationalisation."[The meeting received the paper with enthusiasm. Thereafter, her
move was swift and sudden. The Government of India issued an ordinance and nationalised
the 14 largest commercial banks with effect from the midnight of July 19, 1969. These banks
contained 85 percent of bank deposits in the country. Jayaprakash Narayan, a national leader
of India, described the step as a "masterstroke of political sagacity." Within two weeks of the
issue of the ordinance, the Parliament passed the Banking Companies (Acquisition and
Transfer of Undertaking) Bill, and it received the presidential approval on 9 August 1969. A
second dose of nationalization of 6 more commercial banks followed in 1980. The stated
reason for the nationalization was to give the government more control of credit delivery.
With the second dose of nationalization, the Government of India controlled around 91% of
the banking business of India. Later on, in the year 1993, the government merged New Bank
of India with Punjab National Bank. It was the only merger between nationalized banks and
resulted in the reduction of the number of nationalised banks from 20 to 19. After this, until
the 1990s, the nationalised banks grew at a pace of around 4%, closer to the average growth
rate of the Indian economy.

Liberalization
In the early 1990s, the then Narasimha Rao government embarked on a policy of
liberalization, licensing a small number of private banks. These came to be known as New
Generation tech-savvy banks, and included Global Trust Bank (the first of such new
generation banks to be set up), which later amalgamated with Oriental Bank of Commerce,
Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This move, along with the
rapid growth in the economy of India, revitalized the banking sector in India, which has seen
rapid growth with strong contribution from all the three sectors of banks, namely,
government banks, private banks and foreign banks. The next stage for the Indian banking
has been set up with the proposed relaxation in the norms for Foreign Direct Investment,
where all Foreign Investors in banks may be given voting rights which could exceed the
present cap of 10%,at present it has gone up to 74% with some restrictions. The new policy
shook the Banking sector in India completely. Bankers, till this time, were used to the 4-6-4
method (Borrow at 4%;Lend at 6%;Go home at 4) of functioning. The new wave ushered in a
modern outlook and tech-savvy methods of working for traditional banks.All this led to the
retail boom in India. People not just demanded more from their banks but also received more.
Currently (2010), banking in India is generally fairly mature in terms of supply, product
range and reach-even though reach in rural India still remains a challenge for the private
sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are
considered to have clean, strong and transparent balance sheets relative to other banks in
comparable economies in its region. The Reserve Bank of India is an autonomous body, with
minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is
to manage volatility but without any fixed exchange rate-and this has mostly been true. With
the growth in the Indian economy expected to be strong for quite some time-especially in its
services sector-the demand for banking services, especially retail banking, mortgages and
investment services are expected to be strong. One may also expect M&As, takeovers, and
asset sales. In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its
stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an
investor has been allowed to hold more than 5% in a private sector bank since the RBI
announced norms in 2005 that any stake exceeding 5% in the private sector banks would
need to be vetted by them. In recent years critics have charged that the non-government
owned banks are too aggressive in their loan recovery efforts in connection with

housing,vehicle and personal loans. There are press reports that the banks' loan recovery
efforts have driven defaulting borrowers to suicide.
Adoption of technology in banking system
The IT revolution had a great impact in the Indian banking system. The use of
computers had led to introduction of online banking in India. The use of the modern
innovation and computerisation of the banking sector of India has increased many fold after
the economic liberalisation of 1991 as the country's banking sector has been exposed to the
world's market. The Indian banks were finding it difficult to compete with the international
banks in terms of the customer service without the use of the information technology and
computers The RBI in 1984 formed Committee on Mechanisation in the Banking Industry
(1984) whose chairman was Dr C Rangarajan, Deputy Governor, Reserve Bank of India. The
major recommendations of this committee was introducing MICR Technology in all the
banks in the metropolis in India.This provided use of standardized cheque forms and
encoders. In 1988, the RBI set up Committee on Computerisation in Banks (1988) headed by
Dr. C.R. Rangarajan which emphasized that the settlement operation must be computerized in
the clearing houses of RBI in Bhubaneshwar, Guwahati, Jaipur, Patna and
Thiruvananthapuram.It further stated that there should be National Clearing of inter-city
cheques at Kolkata,Mumbai,Delhi,Chennai and MICR should be made Operational.It also
focused on computerisation of branches and increasing connectivity among branches through
computers.It also suggested modalities for implementing on-line banking.The committee
submitted its reports in 1989 and computerisation began form 1993 with settlement between
IBA and bank employees'association. In 1994, Committee on Technology Issues relating to
Payments System, Cheque Clearing and Securities Settlement in the Banking Industry
(1994)[10]zwas set up with chairman Shri WS Saraf, Executive Director, Reserve Bank of
India. It emphasized on Electronic Funds Transfer system, with the BANKNET
communications network as its carrier. It also said that MICR clearing should be set up in all
branches of all banks with more than 100 branches.
Committee for proposing Legislation On Electronic Funds Transfer and other
Electronic Payments (1995) emphasized on EFT system. Electronic banking refers to DOING
BANKING by using technologies like computers, internet and networking,MICR,EFT so as
to increase efficiency, quick service,productivity and transparency in the transaction.

Company Profilestory of SBI
The roots of the State Bank of India lie in the first decade of the 19th century, when
the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The
Bank of Bengal was one of three Presidency banks, the other two being the Bank of
Bombay (incorporated on 15 April 1840) and the Bank of Madras(incorporated on 1 July
1843). All three Presidency banks were incorporated as joint stock companies and were the
result of royal charters. These three banks received the exclusive right to issue paper currency
till 1861 when, with the Paper Currency Act, the right was taken over by the Government of
India. The Presidency banks amalgamated on 27 January 1921, and the re-organised banking
entity took as its name Imperial Bank of India. The Imperial Bank of India remained a joint
stock company but without Government participation.
Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank
of India, which is India's central bank, acquired a controlling interest in the Imperial Bank of
India. On 1 July 1955, the Imperial Bank of India became the State Bank of India. In 2008,
the government of India acquired the Reserve Bank of India's stake in SBI so as to remove
any conflict of interest because the RBI is the country's banking regulatory authority.
In 1959, the government passed the State Bank of India (Subsidiary Banks) Act,
which made eight state banks associates of SBI. A process of consolidation began on 13
September 2008, when the State Bank of Saurashtra merged with SBI.
SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911),
which SBI acquired in 1969, together with its 28 branches. The next year SBI acquired
National Bank of Lahore (est. 1942), which had 24 branches. Five years later, in 1975, SBI
acquired Krishnaram Baldeo Bank, which had been established in 1916 in Gwalior State,
under the patronage of Maharaja Madho Rao Scindia. The bank had been the Dukan Pichadi,
a small moneylender, owned by the Maharaja. The new bank's first manager was Jall N.
Broacha, a Parsi. In 1985, SBI acquired the Bank of Cochin in Kerala, which had 120
branches. SBI was the acquirer as its affiliate, the State Bank of Travancore, already had an
extensive network in Kerala.The State Bank of India and all its associate banks are identified
by the same blue keyhole logo. The State Bank of India wordmark usually has one standard
typeface, but also utilises other typefaces.
On October 7, 2013, Arundhati Bhattacharya became the first woman to be appointed
Chairperson of the bank.As of December 2014, SBI had assets of US$388 billion and 17,000

branches, including 190 foreign offices, making it the largest banking and financial services
company in India by assets. State Bank of India is one of the Big Four banks of India, along
with Bank of Baroda, Punjab National Bank and Bank of India.
SBI has 14,816 branches in India, as on 31 March 2014, of which 9,851 (66%) were
in Rural and Semi-urban areas. In the financial year 2012-13, its revenue was INR 200,560
Crores (US$36.9 billion), out of which domestic operations contributed to 95.35% of
revenue. Similarly, domestic operations contributed to 88.37% of total profits for the same
financial year.
Under the Pradhan Mantri Jan Dhan Yojana of financial inclusion launched by
Government in August 2014, SBI held 11,300 camps and opened over 30 lakhs accounts by
September, which included 21.16 lakh accounts in rural areas and 8.8 lakh accounts in urban
areas.
SBI has five associate banks; all use the State Bank of India logo, which is a blue circle,
and all use the "State Bank of" name, followed by the regional headquarters' name:
 State Bank of Bikaner & Jaipur
 State Bank of Hyderabad
 State Bank of Mysore
 State Bank of Patiala
 State Bank of Travancore
Non-banking subsidiaries:
Apart from its five associate banks, SBI also has the following non-banking subsidiaries:
 SBI Capital Markets Ltd
 SBI Funds Management Pvt Ltd
 SBI Factors & Commercial Services Pvt Ltd
 SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)
 SBI DFHI Ltd
 SBI Life Insurance Company Limited
 SBI General Insurance

As of 31 March 2014: SBI has 43,515 ATMs and SBI group (including associate banks)
has 51,491 ATMs. SBI has become the first bank to install an ATM at Drass in the Jammu &
Kashmir Kargil region. This was the Bank's 27,032nd ATM on 27 July 2012.
Logo and slogan
 The logo of the State Bank of India is a blue circle with a small cut in the bottom that
depicts perfection and the small man the common man - being the center of the bank's
business. The logo came from National Institute of Design(NID), Ahmedabad and it
was inspired by Kankaria Lake, Ahmedabad
 Slogans: "PURE BANKING, NOTHING ELSE", "WITH YOU - ALL THE WAY",
"A BANK OF THE COMMON MAN", "THE BANKER TO EVERY INDIAN",
"THE NATION BANKS ON US"
Recent awards and recognitions
 SBI won the Best Bank award in the 'ASiAMONEY FX POLL OF POLLS 2014’ for best
overall performance as domestic provider of Forex services over the last 10 years.
 SBI was ranked as the top bank in India based on tier 1 capital by The Banker magazine
in a 2014 ranking.
 SBI was ranked 298th in the Fortune Global 500 rankings of the world's biggest
corporations for the year 2012.
 SBI won "Best Public Sector Bank" award in the D&B India's study on 'India's Top
Banks 2013'.
 State Bank of India won three IDRBT Banking Technology Excellence Awards 2013 for
“Electronic Payment Systems”, “Best use of technology for Financial Inclusion”, and
“Customer Management & Business Intelligence” in the large bank category.
 SBI won National Award for its performance in the implementation of Prime Minister’s
Employment Generation Programme (PMEGP) scheme for the year 2012.
 Best Online Banking Award, Best Customer Initiative Award & Best Risk Management
Award (Runner Up) by IBA Banking Technology Awards 2010

 SKOCH Award 2010 for Virtual corporation Category for its e-payment solution
 SBI was the only bank featured in the "top 10 brands of India" list in an annual survey
conducted by Brand Finance and The Economic Times in 2010.
 The Bank of the year 2009, India (won the second year in a row) by The Banker
Magazine
 Best Bank – Large and Most Socially Responsible Bank by the Business Bank Awards
2009
 Best Bank 2009 by Business India
 The Most Trusted Brand 2009 by The Economic Times.
 SBI was named the 29th most reputed company in the world according to Forbes 2009
rankings
 Most Preferred Bank & Most preferred Home loan provider by CNBC
 Visionaries of Financial Inclusion By FINO
 Technology Bank of the Year by IBA Banking Technology Awards
SBI was 50th Most Trusted brand in India as per the Brand Trust Report 2013, an annual
study conducted by Trust Research Advisory, a brand analytics company and subsequently,
in the Brand Trust Report 2014, SBI finished as India's 19th Most Trusted Brand in India.
Products and services of SBI
1.Account
State Bank Of India offers a wide range of accounts such as current,savings,life plus
senior,Recurring deposite,zero balance,salary account etc..
 Zero balance account: This is a type of account which can be opened with no
money.It is offered only to the students.One cannot invest more than Rs.50,000 in this
account.
 Savings account:Convenience is the name of the game with SBI’s savings
account.Whether it is an ATM/Debit card,easy withdrawal,easy loan options or
internet banking,SBI savings account always keep you in touch of money.
 Current Account:Current account is opened by bsiness men who have a higher
number of regular transactions with the bank.It includes deposits,withdrawals and
contra transactions.

2.Loans
SBI offers a wide range of loans to meet the varying needs at every stage of life.It
offers a range of Tenures and other features to suit all requirements.
 Home loans: It offers unbeatable offers to the customers.SBI provide guidance to
customers throughout the process with doorstep process service,simplified
documentation etc...
 Personal loans: SBI personal loans are easy to get and hassle free.With minimum
documentation you can now secure a loan for an amount up to Rs.15 lakhs.
 Vehicle loans: Network of more than 2500 channel partners in over 1000
locations.Tieups with all leading automobile manufactures to ensure the best
deals.Flexible schemes and quick processing are the main advantages.
3.Cards
SBI offers a variety of cards to suit different transactional needs.It includes credit
cards,debit cards and prepaid cards.
 Credit card: SBI credit card give you the facility of cash,convenience and a range of
benefits anywhere in the world.
 Debit card: SBI debit card is a revolutionary form of cash that allows customers to
access their bank account around the clock,around the world.
 Travel card: SBI travel card,the hassle free way to travel the world.Travelling with
US dollar,Euro,Pound or Sterling is very difficult and it is secure and convenient to
cary a travel card,which can be converted to any currency.
4.Trade services
SBI offers online remittances as well as online processing of letters of credit and
bank guarantees.
5.Cash management
SBI offers a complete range of highly customized solutions for managing both the
collections and payment requirements of clients by leveraging technology.

6.Corporate banking
SBI offers comprehensive and financial solutions for its corporate clients,including
rupee and foreign currency debts,working capital credit,structured financing syndication and
transaction banking products and services.
7.NRI banking
Services to take care of all NRI banking needs including money transfers and private
banking.
8.Demat accounts
SBI demat services offer unique features like e-constructions,consolidation,digitally
signed statements,mobile requests and corporate benefit tracking.
9.Rural Banking
Bank offers technology based solutions,financial innovations and multiple delivery
channels to meet the financial needs of rural areas.
10.ATM
With more than 20000 ATMs across the country,SBI has one of the largest ATM
networks in India.
11.Internet banking
Internet banking is available to all SBI savings and other deposite account
holders,credit card,demat and loan customers.Internet banking service offer customers a
world of convenience with services such as balance enquiry,transaction history,account
statement,bill payments,fund transfers and account related service requests.

CHAPTER III
LITERATURE REVIEW
Introduction
Customer satisfaction has an important role for the successful running of a firm. It is
the customer who determines the growth, prosperity and even existence of a business
enterprise. So all firms are engaged to attract customers and build a long term relationship
with them. The marketer needs to understand fully the working of buyer’s mind and use
suitable strategies to create a favorable orientation in the mind of consumers. He must plan
his production and distribution to meet the needs and convenience of consumers rather than
his own.
Customer satisfaction is a term frequently used in marketing. It is a measure of how
products and services supplied by a company meet or surpass customer expectation. In a
survey of nearly 200 senior marketing managers, 71 percent responded that they found a
customer satisfaction metric very useful in managing and monitoring their businesses
Customer –Meaning
In general Consumer defined as “A party that receives or consumes products (goods
or services) and has the ability to choose between different products and suppliers”. A
customer is the recipient of a goods, service, product or idea obtained from a supplier for a
monetary or other valuable consideration.
Customer satisfaction
Customer satisfaction is defined as the ’’ no: of customers, or percentage of total
customers, whose reported experience with a firm, its products or its services exceeds
specified satisfaction goals’’.In a competitive market place where businesses compete for
customers, customers’ satisfaction is seen as a key differentiator and increasingly has become
a key element of business strategy.
In researching satisfaction firms generally ask customers whether product or service
has met or exceeded expectations. Thus, expectations are a key factor behind satisfaction.
When customer have high expectations and the reality falls short ,they will be disappointed
and will likely rate their experience as less than satisfying.
Customer satisfaction is an ambiguous and abstract concept and the actual
manifestation of the state of satisfaction will vary from person to person and product/ service

to product/ service. The state of satisfaction depends on a no: of both psychological and
physical variables which correlate with satisfaction behavior such as return and recommend
state. It is seen as a key performance indicator within business and is often part of balanced
score card. In a competitive marketplace where businesses compete for customers, customer
satisfaction is seen as a key differentiator and increasingly has become a key element of
business strategy.
"Within organizations, customer satisfaction ratings can have powerful effects. They
focus employees on the importance of fulfilling customers’ expectations. Furthermore, when
these ratings dip, they warn of problems that can affect sales and profitability. . . . These
metrics quantify an important dynamic. When a brand has loyal customers, it gains positive
word-of-mouth marketing, which is both free and highly effective." Therefore, it is essential
for businesses to effectively manage customer satisfaction. To be able do this, firms need
reliable and representative measures of satisfaction.
"In researching satisfaction, firms generally ask customers whether their product or
service has met or exceeded expectations. Thus, expectations are a key factor behind
satisfaction. When customers have high expectations and the reality falls short, they will be
disappointed and will likely rate their experience as less than satisfying. For this reason, a
luxury resort, for example, might receive a lower satisfaction rating than a budget motel—
even though its facilities and service would be deemed superior in 'absolute' terms."
"Customer satisfaction provides a leading indicator of consumer purchase intentions
and loyalty." "Customer satisfaction data are among the most frequently collected indicators
of market perceptions. Their principal use is twofold:"
1. Within organizations, the collection, analysis and dissemination of these data send a
message about the importance of tending to customers and ensuring that they have a positive
experience with the company’s goods and services."
2. "Although sales or market share can indicate how well a firm is performing currently,
satisfaction is perhaps the best indicator of how likely it is that the firm’s customers will
make further purchases in the future. Much research has focused on the relationship between
customer satisfaction and retention. Studies indicate that the ramifications of satisfaction are
most strongly realized at the extremes." On a five-point scale, "individuals who rate their
satisfaction level as '5' are likely to become return customers and might even evangelize for
the firm. (A second important metric related to satisfaction is willingness to recommend. This

metric is defined as "The percentage of surveyed customers who indicate that they would
recommend a brand to friends." When a customer is satisfied with a product, he or she might
recommend it to friends, relatives and colleagues. This can be a powerful marketing
advantage.) "Individuals who rate their satisfaction level as '1,' by contrast, are unlikely to
return. Further, they can hurt the firm by making negative comments about it to prospective
customers. Willingness to recommend is a key metric relating to customer satisfaction.
Internet banking includes the system that enables financial institution
customers,individuals or businesses,access accounts,transact business,or obtain information
on financial products and services on public or private network including Internet.Internet
banking is convenient,it is not bound by operational timings,there are no geographical
barriersand the services can be offered at a miniscule cost.The components like
data,hardware,software,network and people are the essential elements of the
system.customers get satisfied with the system when it provides them maximum convenience
and comfort while transacting with the bank.Internet enabled electronic system facilitate the
operation to fetch these result.The new information technology is becoming an important
factor in the future devolepment of financial services industry and especially banking
industry.Banks are faced with a number of important questions,for example how to take full
advantage of new technology opportunities,how e-devolepments change,the ways customers
interact with the financial service providers etc.Internet banking is a form of self service
technology,costing millions of dollars,which leading retail banks have made available in the
recent past.An understanding of why users are more accepting of Internet banking services
should help bank managers to implement this self-service technology.This study identifies
eight charecteristics,which influenced the rate of adoption.Two of these
charecteristics,namely accessibility and confidentiality,are new to the literature.The results
show that the adopters of internet banking percieve the service to be more convenient,less
complex,more compatible to them and more suited to those who are PC proficient.Adopters
were also found to be more financially innovative.The perceptions that adopters had about
social desirability,confidentiality,accessibility and economic benefits were viewed no
differently when adopters were compared with non adopters.Joseph Stone have saidthat the
internet deals with a large number of varied financial transactions like customer
payments,securities transactions,applications for loans or insurance acquisitions.The
consequence of the structure and intention of the internet to be an open network means high
security risks are involved with financial transactions.Today,various techniques and standards

are offered inorder to control or even avoid these risks.Basic requirements are as
follows:customer and financial institution have to authenticate eaach other;private data have
to be encoded.Cryptographic algorithms used need to have certain charecteristics;no third
party should be able to quickly get access to messages or even to driver financial
transactions;a digital signature is necessary to get binding legal contracts.These digital
signatures have to secure the integrity of signed documents.It needs to be guaranteed that
sender and reciever have the same intentions.In recent years,internet banking usage has
become one of the most important e-commerce environment.Sohail and Shanmugham
pointed out that a bank’s promotional efforts indeed facilitate awareness of internet banking
adoption and its benefits.
According to O’Hanlon,Technology has introduced new ways of delivering banking
to the customer,such as ATMs and Internet Banking.Hence,banks have found themselves at
the forefront of technology adoption for the past three decades.Increasing labour costs in the
1960s placed pressure on labour intensive industries like banging to look forward automating
some of their functions.Barclays Bank was the first to envisage the potential of ATMs,and
introduced the first ever ATM in 1967.Initially,ATMs were not sophisticated,and served only
as cash dispensers.Originally,banks offering an ATM service achieved an advantage over
their competitors.There was scant understanding of the customers’ needs or expectations and
the role of ATMs large in bank’s retail delivery system was vague.In the early market
stage,ATM was a product based on a radical technological innovation,and did not represent a
solution to a customer need at that point in that time.In the mid 1970s,features like cash
balance enquiry,deposits and funds transfer that permitted these customers to conduct the
majority of their routine transactions without visiting a bank branch.By the late 1980s,ATMs
were viewed as a generic service,a commodity with no competetive advantage.Since then IB
has been able to successfully cross the chasm as a complete service within the financial
service industry.According to the Gartner’s group’s 1999 report,there has been a rapid growth
in online PC banking in the USA;from just over 10 million in 1999 to the projected 35
european countries such as Germany,Norway and Sweden has been similar.
In an attempt to solidify and expand customer relationships and saty ahead of the
competetion,banks are turning to the next generation of personalised online services-internet
banking portals and mobile banking.Electronic Customer Relationship Management(eCRM)
will thus be next paradigm shift.It will be a matter of fundamental change,involving the re-

engineering of processes throughout the financial institution.It must not be a web solution or
an advisor solution or a call center solution or a wireless solution.Enterprise wide eCRM
must be all of the above.Beyond the ability to deploy across multiple channels,the solution
must have consistency and collaboration across all channels.Rotchanakitumnua state that
though banks are very interested in internet banking they are concerned with the risks
connected with procedures for transactions over the Internet.Today,banks are already loosing
enormous amounts through cheques and credit card fraud.The security solutions of the future
are therefore major concern for banks.If customers distrust the security,it may create multiple
problems.Banks will find it hard to launch Internet Banking services if demand is lowbecause
of security doubts.Though the banks themselves believe that the security levels for bank
transactions over the internet are sufficient,they also believe that their customers distrust
existing security solutions,primarily because they are software based.There are three security
aspects in a transaction:content confidentiality,integrity and authentication and non-
repudiation.These aspects are treated independently with various and often disparate
standards.It is recommended that security be provided at all levels:client interface,transport
and internal systems.Solomon claims that for client interface and transport,security is
currently ensured by the use of cryptographic instruments and by the set up of private
financial network.Also,private networks are another solution to secure transations.These
networks can be used for corporate banking and retail banking.
The concept of electronic banking has been defined in many ways. Daniel defines
electronic banking as the delivery of banks' information and services by banks to customers
via different delivery platforms that can be used with different terminal devices such as a
personal computer and a mobile phone with browser or desktop software, telephone or digital
television.Pikkarainen et al define internet banking as an "internet portal, through which
customers can use different kinds of banking services ranging from bill payment to making
investments". With the exception of cash withdrawals, internet banking gives customers
access to almost any type of banking transaction at the click of a mouse. Indeed the use of the
internet as a new alternative channel for the distribution of financial services has become a
competitive necessity instead of just a way to achieve competitive advantage with the advent
of globalization and fiercer competition. Banks use online banking as it is one of the cheapest
delivery channels for banking products. Such service also saves the time and money of the
bank with an added benefit of minimizing the likelihood of committing errors by bank tellers.
Robinson believes that the supply of internet banking services enables banks to establish and

extend their relationship with the customers. There are other numerous advantages to banks
offered by online banking such as mass customization to suit the likes of each user,
innovation of new products and services, more effective marketing and communication at
lower costs, development of non-core products such as insurance and stock brokerage as an
expansion strategy, improved market image, better and quicker response to market evolution.
Wise and Ali argued that many banks want to invest in ATMs to reduce branch cost since
customers prefer to use them instead of a branch to transact business. The financial impact of
ATMs is a marginal increase in fee income substantially offset by the cost of significant
increases in the number of customer transactions. The value proposition however, is a
significant increase in the intangible item "customer satisfaction". The increase translates into
improved customer loyalty that in result in higher customer retention and growing
organization value. Internet banking is a lower-cost delivery channel and a way to increase
sales.Internet banking services has become one of the most important factors in the business
economy today.The changes occurring in the banking sector can be attributed toincreasing
deregulation and globalization, the major stimulus for rationalization,consolidation, and an
increasing focus on costs.Haque, Internet banking used the internet as the delivery channel to
conduct banking activities like transferring funds, paying bills, viewing account statements,
paying mortgages and purchasing financial certificates of deposits.Mavri and Ioannou, Banks
know that the Internet opens up new horizons for them and moves them from local to global
frontiers.Gonzalez- Banks gain competitive advantage over their rivals by providing
electronic banking services as technology induced services reduce cost of operations,
removes geographical barriers, provides 24 hours banking, extended hours of business and
efficiency in daily banking processes. Without even interacting with the bankers, customers
can transact banking activity from any corner of the world. Electronic banking has
experienced rapid growth and has transformed the traditional banking practices.According to
Broadie e banking is leading to a paradigm shift in the marketing practices of banking
industry. A professional banking service can be provided only if the background operations
are efficient. The background operations can be effective only if it is integrated with an
electronic system. The data, hardware, software, network; people are all the essential part of
this system. Customers are happy with the system only when it provides them comfort and
convenience while transacting with the bank. Internet enabled electronic system facilitate
these operation to obtain the result. According to Christopher, E banking has become an
important channel to sell the products and services and is perceived to be a necessity in order
to stay profitable and successful. The perception is the result of interpretingthe experience.

There is a growing interest in understanding the user’s experience, as it is observed as
a larger concept than user satisfaction. From this it is inferred that assessing the user
experience is essential for many technological products and services.Dabholkar claims that
very little are known about customer preference for self service options, particularly those
which are technology based. Researchers have found that significant number of customers are
either not aware of Internet Banking Services or do not trust IB as a channel to conduct
financial transactions. They have also found that customers may adapt the IB services only if
they perceive the technology to be useful.
The Internet can no longer be considered a “fad” or the preserve of “techies” and
“computer nerds”. Commercial uses of the Net have become the fastest growing part of the
World Wide Web. About the same time, Internet Banking was thought to signal a revolution
in banking distribution. Banks invested heavily in the development of the Internet channels.
Internet Banking has experienced explosive growth in many countries and has transformed
traditional banking practice. Inevitability, Internet Banking will continue to revolutionize the
current traditional banking industry and offers more opportunity to meet better consumer
services through enhanced interaction, data mining and customization in the Internet Banking
services. With respect to Internet Banking, a common confusion exists between the terms of
online banking, Internet Banking as well as PC banking. The terms Internet Banking and
online banking are often used in the literature to refer the same things. According to Hamid,
online banking is another term used for Internet Banking. Both share the similar meaning.
Internet Banking or online banking can be defined as the service that allows consumers to
perform banking transactions using a computer with an Internet connection. Thulani refer
Internet Banking as systems that enable bank customers to get access to their accounts and
general information on bank products and services through the use of bank’s website, without
the intervention or inconvenience of sending letters, faxes, original signatures and telephone
confirmations. It is the types of services through which bank customers can request
information and carry out most traditional retail banking services such as opening an account
or transferring funds to different accounts, and new banking services, such as electronic
online payments via a telecommunication network without leaving their homes or
organizations. It provides universal connection from any location worldwide and is
universally accessible from any Internet linked computer.
At an advanced level, Internet Banking is called transactional online banking. On the
other hand, PC banking is defined as a home banking whereby consumers supplied with a
financial software package on disks, allowing consumers to fill in details offline and then to

send them into the bank over the bank’s private network. Unlike PC banking, Internet
Banking or online banking does not require proprietary software or access to a private
network. ISACA recorded that more and more banks are transforming their businesses by
using Internet technology to develop or expand relationships with their customers. The extent
to which the Internet is used in a bank depends on the relative maturity of the bank in regard
to Internet technology. Banks offer Internet Banking in two main ways. An existing bank
with physical offices, ordinarily termed a brick-and-mortar bank, can establish a website and
offer Internet Banking to its customers as an addition to its traditional delivery channels. An
alternative is to establish either a virtual, branchless or Internet-only bank. The computer
server or bank database that lies at the heart of a virtual bank may be housed in an office that
serves as the legal address of such a bank or at some other location. Virtual banks provide
customers with the ability to make deposits and withdrawals via automated teller machines
(ATMs) or through other remote delivery channels owned by other institutions
(www.isaca.org).
Thulani, Yibin and Diniz identify three functional types of Internet Banking that are currently
employed in the market place i.e. Informational, Communicative and Transactional.
 Informational - This is the basic level of Internet Banking. Typically, the bank has
marketing information about the bank's products and services on a stand-alone server.
 Communicative - This type of Internet Banking system allows some interaction
between the bank's systems and the customer. The interaction may be limited to
electronic mail, account inquiry, loan applications or static file updates (name and
address changes).
 Transactional - This level of Internet Banking allows customers to directly execute
transactions with financial implications. The basic transactional site only allows a
transfer of funds between the accounts of one customer and the bank. The advanced
transactional site provides a means for generating payments directly to third parties
outside of the bank. This can take the form of bill payments via a bank official check
or electronic funds transfer/automated clearing house entries.
Internet Banking has been regarded as the most important way to reduce cost and
maintain or enhance services for consumers. By offering Internet Banking services,
traditional financial institutions seek to lower operational costs, improve consumer
banking services, retain consumers and expand share of customer. Internet is the cheapest

delivery channel for banking products as it allows the entity to reduce their branch
networks and downsize the number of service staff. The navigability of the website is a
very important part of Internet Banking because it can become one of the biggest
competitive advantages of a financial entity. Internet Banking is a process of innovation
whereby customers handle their own banking transactions without visiting bank tellers.
Recent evidence suggests that an Internet-based consumer banking strategy may be
effective, with reports of more profitable, loyal and committed consumers compared with
traditional banking consumers. Thus, contemporary banks now regard the Internet
channel as equally important to traditional channels of branches, automated teller
machines (ATM), telephone banking and call centers.In the new banking environment,
Internet Banking is increasingly managed as an operational activity and an important
element of a multi-channel strategy.
Success in the electronic-banking era is measured in the eyes of the customer.
A bank has to profitably meet the needs of customers and continuously improve its ability
to do so. It has to be accurate, reliable, helpful and understanding. The goal is not simply
to satisfy customers but to positively delight them. The specific things that delight the
customer vary from industry to industry and from product to product. But most customers
want the same things. According to Balachandher,
1. Customers are interested in quality.
2. They desire good and effective service delivery.
3. They want flexibility so that the specific product or service be obtained.
4. They covet value by not wanting to pay a price that exceeds the value received
from the product.
Lustsik adds that an important factor indicating an urgent need for change is that the
Pareto 80/20 rule appears to be no longer valid. Recent analysis shows that instead of 20% of
customers generating 80% of profits, 10% of customers are generating over 100% of profits.
This of course means that the remaining 90% are unprofitable. Many banks are only just
realising that they are unable to measure profitability accurately enough to tell the difference
between their profitable and unprofitable business. The tendency at these banks is therefore
for all senior managers to claim that their business responsibility area is profitable in the
absence of reliable management statistics that can demonstrate otherwise. A fundamental
realisation in the context of all these developments is that banking is changing from a seller
driven process to a buyer driven process.

Thus, the success of E-banking depends squarely on customers’ satisfaction of the e-
products and e-services. E-banks need therefore, to make a lot of effort in creating awareness
among existing and prospective customers about the benefits of these products and services.

CHAPTER IV
ANALYSIS & INTERPRETATION OF DATA
The study deals with the customer satisfaction of online banking with reference to the
customers of SBI,Ponganadu.A sample of fifty is taken for the study.The result is discussed
in the following points.
1.Classification of respondents based on age
The classification based on age wise is given in the below table.
Age wise classification(Table 4.1)
Age No. of respondents Percentage
18-25 22 44%
25-35 13 26%
35-45 8 16%
45-55 5 10%
Above 55 2 4%
Source:Primary data
Age wise classification proved that respondents between the age of 18-25 are using
internet banking more(44%).26% of the respondents comes in the category of 25-35.16% of
the respondents comes in 35-45 and 10% comes in 45-55.Only 4% comes in the category of
above 55.It shows that youth people are using IB more.Oldage people may not have sufficient
knowledge with regard to internet banking,that is why they are not using commonly.
Figure 4.1
44%
26%
16%
10%
4%0%
10%
20%
30%
40%
50%
18-25 25-35 35-45 45-55 Above 55
Age wise classification
Percentage of respondents

2. Respondents based on sex
As per the analysis sex wise classification showed the following position.
Sex wise classification(Table 4.2)
Sex No. of respondents Percentage
Male 36 72%
Female 14 28%
Source:Primary data
The study reveals that the online banking is most widely used by male
customers(72%).Only 28% of respondents are females using online banking sevices.The rest
is occupied by the male customers.As we know,for using online/internet banking requires
laptop,PC or a smart phone and a working internet connection.Most of the people doesn’t
have all these at home.So people are forced to go to an internet kiosk for doing the online
banking activities.Females doesn’t prefer such kiosks due to various reasons.It may be the
reason behind the decrease in number of female customers for internet banking.
The graphical representation of sex wise classification of respondents are given on
below graph(4.2):
Figure 4.2
0% 20% 40% 60% 80%
Male
Female
72%
28%
Classification of respondents based on sex
Percentage of responents

3.Classification on the basis of marital status
Classification of respondents based on marital status is given on the table below.
Marital status (Table 4.3)
Marital status No. of respondents Percentage
Married 23 46
Single 27 54
Source:Primary data
From this classification we came to know that the unmarried persons are using online
banking activities more than the married people.Married people occupies only 46% and the
unmarried occupies 54%.Marrried people suffers a lot of tensions and strain in their family
life.So they may do not have sufficient time for performing online activities.It may be the
reason for this.
Graphical representation of marital status of respondents are given in the below.
Figure 4.3
42%
44%
46%
48%
50%
52%
54%
Married Single
46%
54%
Classification on the basis of marital status

4.Occupational wise classification of respondents
Occupation is one of the standard of judgement for the users of internet
banking.Occupational wise classification of respondents are given in the below table.
Occupational wise classification (Table 4.4)
Occupation No. of repondents Percentage
Govt. employee 12 24%
Semi govt. 2 4%
Self employment 5 10%
NRI 11 22%
Professional 7 14%
Farmer 3 6%
Other 3 6%
Student 7 14%
Source:Primary data
NRIs palys a vital role in the economic devolepment of our country.In this study NRIs
proved their strength.In the usage of online banking services NRIs came just below the govt.
employees with a percentage of 22 while govt. employees being 24%.Due to the regular
usage of internet,students and professionals are more familiar with online activities.So they
comes in the third position.Students and professionals occupies 14% each.Other people in
this study are Self employees(10%),Farmers(6%),Others(6%),Semi govt. employees(4%).
The graphical representation of respondents based on occupation is shown below.
Figure 4.4
24%
4%
10%
22%
14%
6% 6%
14%
0%
5%
10%
15%
20%
25%
30%
Occupational wise classification

5.Classification of customers based on qualification
Below table(4.5) shows the classification of respondents based on their qualification.
Classification based on qualification (Table 4.5)
Qualification No. of respondents Percentage
Below SSLC 3 6%
SSLC 4 8%
+2 10 20%
Graduate 16 32%
Post graduate 15 30%
Others 2 4%
Source:Primary data
From the current study we have realized the fact that highly qualified persons uses
more than that of others.34% of respondents are graduates and 30% are post
graduates.Respondents having higher secondary qualification comes just below post
graduates(20%).The other respondents are SSLC(8%),Below SSLC(6%),Others(4%).Highly
qualified persons get more knowledge about online activities than others from their
curriculum.That is why qualified respondents uses internet banking more than that of
respondents having basic qualification.
Here is the graphical representation of classification based on qualification.
Figure 4.5
6%
8%
20%
32%
30%
4%
0%
5%
10%
15%
20%
25%
30%
35%
Below
SSLC
SSLC Plus two Graduate Post
graduate
Others
Classification based on qualification

6.Respondents based on their monthly income
The below table shows the classification of respondents based on their monthly
income.
Classification based on monthly income (Table 4.6)
Income No. of respondents Percentage
Below 10000 9 18%
10000-20000 17 34%
20000-30000 18 36%
Above 30000 6 12%
Source:Primary data
According to the study, middle class people most widely uses internet banking.People
having an income in between 20000 and 30000 comes in the first position(36%) and people
having income in between 10000 and 20000 comes in the second position(34%).People
having income less than 10000 comes in the second last position(18%).Respondents having a
monthly income of more than 30000 uses online banking least(12%).People in this category
deals with large amount of money in single transaction as compared to the others.There may
be a fear in their minds about the security of online banking.It may be reason for it.
Graphical representation of this classification is given below:
Figure 4.6
18%
34%
36%
12%
Classification based on monthly income
Below 10000
10000-20000
20000-30000
Above 30000

7.Mostly used internet banking service facility
The table shows the mostly used e-banking service facility.
Mostly used internet banking facility (Table 4.7)
Services No. of respondents Percentage
Withdrawal 28 56%
Balance enquiry 12 24%
Deposite 1 2%
Cheque 3 6%
DD 1 2%
Bill payment 5 10%
Source:Primary data
Majority of the respondents uses withdrawal facility(56%).Most of the companies
transfer salaries of the employees’ in to their bank accounts.Employees prefer ATMs to
withdraw their salary.That is why majority of the respondents uses withdrawal facility of
internet banking.Balance enquiry comes in the second position with a total of
24%.Cheque,DD and Bill payment are used by 6%,2% and 10% respectively.Depositing is an
important facility of banking as same as that of withdrawal.Unfortunately only 1% of
respondents uses e-facilities for depositing.It may be due to the lack of adequate number of
CDMs in the locality.
Graphical representation of the classification is given below:
Figure 4.7
56%
24%
2%
6%
2%
10%
Mostly used internet banking facility
Withdrawal
Balance enquiry
Deposite
Cheque
DD
Bill payment

8.Satisfactory level of respondents with internet banking facility of SBI
Satisfactory level of respondents in accordance with the online banking facility of SBI
is given in the table below.
Satisfaction level (Table 4.8)
Satisfactory level No. of respondents Percentage
Highly satisfied 11 22%
Satisfied 27 54%
Neutral 2 4%
Dissatisfied 6 12%
Highly dissatisfied 4 8%
Source:Primary data
More than half (54%) of the respondents are satisfied with the online banking
facilities of SBI.22% of the respondents says that they are highly satisfied.SBI provides
sound facilities to its online customers.But 12% are dissatisfied and 8% are highly
dissatisfied.4% had no opinion regarding this.From this we can analyse that the online
banking of SBI plays a predominant role for fulfilling majority of customer needs.
The below graph shows the satisfactory level of respondents with online banking:
Figure 4.8
22%
54%
4%
12%
8%
Satisfactory level of respondents with internet banking facilities of
SBI
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied

9.Opinion about computerization process of SBI
The table shows the opinion of respondents about the computerization process of SBI.
Opinion (Table 4.9)
Items No. of respondents Percentage
Increased efficiency 14 28%
Reduces wastage of time 18 36%
24 X 7 Services 16 32%
Any other 2 4%
Source:Primary data
The first and foremost aim of bank computerization is to reduce the time
wastage.Computeristaion process of SBI fulfilled its main aim.Because 36% of the
respondents comment that computerization process reduces time wastage.The another
important merit behind bank computerization is 24 X 7 services.32% of the respondents
quoted it.28% of the respondents tells that bank computerization increased efficiency.The rest
4% suggests some other opinions.It is a fact that now a days the time can be saved through
banking transactions because of modern techniques.
Graphical representation of computerization process of SBI is given below(4.9):
Figure 4.9
0%
5%
10%
15%
20%
25%
30%
35%
40%
Increased
efficiency
Reduces
wastage of
time
24 X 7
Services
Any other
28%
36%
32%
4%
Opinion about computerisation process of SBI

10.Opinion about the effectiveness of e-banking
The below table shows the opinion of respondents in accordance with the
effectiveness of e-banking.
Effectiveness (Table 4.10)
Effectiveness No. of respondents Percentage
Very good 23 46%
Good 15 30%
Poor 6 12%
Very poor 6 12%
Source:Primary data
46% of the respondents replied ‘very good’.30% of the respondents replied ‘good’.6%
stated ‘poor’ as effectiveness of e-banking and the rest 6% selected ‘very poor’.Whatever it
is,the degree of satisfaction is high.76% satisfied while only 24% dissatisfied.From this
analysis, we can see that 3/4th
(96%) of the respondents are of the opinion of ‘good’ or ‘very
good’.So others’ opinion can be negligible.
Here is the graphical representation of effectiveness of e-banking:
Figure 4.10
46%
30%
12%
12%
Effectiveness of e-banking
Very good
Good
Poor
Very poor

11.Satisfaction with the presents online banking system
The below table shows the satisfaction of respondents in the presents online banking
system.
Satisfaction level (Table 4.11)
Satisfaction level No. of respondents Percentage
Satisfied 27 54%
Neutral 3 6%
Dissatisfied 3 6%
Source:Primary data
As discussed earlier,the present online banking system is very much modernized and
gives maximum satisfaction to the customers.From the respondents’ side,58% are satisfied
and 36% are highly satisfied.As usual there are also dissatisfied customers.Dissatisfied
customers occupies 6% and highly dissatisfied occupies 2%.6% had no opinion regarding
this.
The following shows the graphical representation of satisfaction level of customers:
Figure 4.11
36%
58%
6% 6% 2%0%
10%
20%
30%
40%
50%
60%
70%
Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied
Satisfaction level of customers on the present online banking
system

12.Got knowledge to use online banking
The below table describes how many customers got adequate knowledge with regard
to online banking.
Knowledge(Table 4.12)
Yes 21 42%
No 29 58%
Source:Primary data
Not only the SBI,other banks also fails to give sufficient knowledge about the usage
of internet banking to customers.The same problem occurs here.Only 42% of the respondents
have clear knowledge about the usage of internet banking.Rest of 58% are still unknowing
about the usage,means majority of the customers are unaware of the usage of internet
banking.
Here is the graphical representation of the current classification.
Figure 4.12
0%
10%
20%
30%
40%
50%
60%
Yes No
42%
58%
Knowledge about the usage of internet banking

13.Computerisation in banks helps to reduce time wastage
The table below shows replies of respondents to the statement ‘Computerisation in
banks reduce time wastage.
Computerisation reduces wastage of time (Table 4.13)
Particulars No. of respondents Percentage
Strongly agree 32 64%
Agree 13 26%
Disagree 3 6%
Strongly disagree 1 2%
No comments 1 2%
Source:Primary data
It is a fact that computerization in banks reduces time wastage.64% strongly agree
while 26% agrees with the statement,i.e, 90% of the respondents agree with the
statement.Only a few percentage replied as dissatisfied and highly dissatisfied(6% and 2%
respectively).2% didn’t stated their opinion.
The graphical representation of the replies are given below.
Figure 4.13
64%
26%
6%
2%2%
Computerisation reduces wastage of time
Strongly agree
Agree
Disagree
Strongly disagree
No comments

14.Drawbacks of online banking
The below table describes respondents’ reply towards the drawbacks of online
banking.
Drawbacks of internet banking (Table 4.14)
Limited scope for personal
advice 5 10%
Fear about security 19 38%
No direct communication
with bank 3 6%
Lack of knowledge 20 40%
All of the above 3 6%
Source:Primary data
For each and everything in the universe,there will be some drawbacks.Online banking
has also some drawbacks as usual.40% of the total respondents listed ‘lack of knowledge’ as
the drawback of online banking.38% tells that ‘fear about security’ is the drawback of online
banking.In the opinion of 10%, ‘the limited scope for personal advice is the drawback of
online banking.6% reveals that the lack of ‘direct communication with bank’ is the
drawback.Another 6% quoted all of the above things as the drawback of online banking.
Following is the graphical representsion of drawbacks of internet banking:
Figure 4.14
10%
38%
6%
40%
6%
Drawbacks of online banking
Limited scope for personal
advice
Fear about security
No direct communication with
bank
Lack of knowledge

15.Bank’s website makes easy to find what we need
The table shows respondents’ reply to the statement.
Website makes easy to find (Table 4.15)
Agree 27 54%
Disagree 4 8%
No comments 3 6%
Source:Primary data
From the total sample customers 54% agreed with the statement.26% were strongly
agreed and 8% disagreed with the statement.Another 6% had no idea about this.
Here is the graphical representation of the reply statement:
Figure 4.15
26%
54%
8%
6%
6%
0% 10% 20% 30% 40% 50% 60%
Strongly agree
Agree
Disagree
Strongly disagree
No comments
Website makes easy to find

16.Organisation of website information
The below table explains respondents’ attitude towards the information on banks’s
website.
Organisation of website information(Table 4.16)
Agree 29 58%
Disagree 10 20%
Some what agree 9 18%
Neutral 2 4%
Source:Primary data
SBI has a very powerful website which enhances customers to perform various
banking services.58% of the respondents agrees that the information at bank’s website are
well organised.18% agrees only up to an extent.But 20% disagree with this.4% didn’t replied.
Below graph shows the graphical representation of this classification.
Figure 4.16
0%
10%
20%
30%
40%
50%
60%
Agree
Disagree
Some what
agree
Neutral
58%
20%
18%
4%
Organisation of website information

17.Availability of website
The table shows repondents’ response regarding the availability of bank’s website.
Avaialability of website(Table 4.17)
Agree 17 34%
Disagree 0 0%
No comments 0 0%
Source:Primary data
In this context,the degree of satisfaction is highest.66% of the respondents strongly
agrees with the availability of website and 34% agrees.Here all respondents are satisfied
which shows the success of the SBI website.
Here is the graphical representation of current analysis:
Figure 4.17
0%
20%
40%
60%
80%
Strongly
Agree
Disagree
Strongly
disagree
No
comments
66%
34%
0%
0%
Availability of website

18.Information at bank’s website are accurate
The below table shows respondents’ reply to the statement ‘information at my bank’s
website are accurate’.
Accuracy of website information(Table 4.18)
Agree 13 26%
Disagree 13 26%
Neutral 7 14%
Source:Primary data
There was a higher degree of customer satisfaction in the availability of bank’s
website.But it goes down in the case of accuracy of website information.Banks may not
disclose all the information in their website due to security or competitive reasons.It may be
the reason for this.Here,34% of customers up to an extend that information in the website are
accurate.26% agrees and 26% disagrees.14% was neutral.
The below graph shows the graphical representation of this classification.
Figure 4.18
26%
26%
34%
14%
Accuracy of website information
Agree
Disagree
Some what agree
Neutral

19.Bank compensates when transactions are not completed in time
Below table discloses the data obtained from the current classification.
Degree of compromise(Table 4.19)
Agree 21 42%
Disagree 6 12%
Source:Primary data
We know that SBI is the largest commercial bank in India.It has to deal with lakhs of
customers a day.So there is a chance for time lag in services.It is essential to compensate
customers when transactions are not completed in time.If they are not compensated in a fair
manner,they tend to migrate to any other service providers or bank.From the study we came
to realize that SBI compensates its customers not in a bad way.46% of the respondents some
what agrees to the statements and 42% completely agrees that SBI compensates when any
time lag is happened in the operations.But a minority of 12% completely disagrees.
Here is the graphical representation of degree of compromise.
Figure 4.19
42%
12%
46%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Agree Disagree Some what agree
Degree of compromise

20.Satisfactory level with the services of online customer care executive
Here is the table showing the satisfactory level of respondents towards the online
customer care executive.
Services of online customer care executive(Table 4.20)
Satisfaction level No. of opponents Percentage
Satisfied 21 42%
Neutral 6 12%
Dissatisfied 7 14%
Source:Primary data
In a bank,there will be e-literate and e-illiterate customers.So the services of online
customer care executive is essential.SBI posses the service of online customer care executive
24 X 7.42% of the respondents are satisfied with the services provided by the online customer
care executive.24% are highly satisfied.14% are dissatisfied and 8% are highly
dissatisfied.12% of the respondents doesn’t revealed their opinion.
The graph shows the graphical representation of the same.
Figure 4.20
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
24%
42%
12% 14%
8%
Services of customer care executive

21.Respondents’ attitude towards bank
Below table shows the attitude of respondents’ towards the bank.
Attitude to bank(Table 4.21)
Positive 46 92
Negetive 4 8
Source:Primary data
It is clear from this analysis that majority respondents are satisfied with the services
provided by SBI.More than 3/4th
(92%) of the respondents have a positive attitude towards
the bank.Only 8% have a negetive attitude.Minority is dominated by majority.So it can be
avoided.
Graphical representation of respondents’ attitude towards bank is given below.
Figure 4.21
92%
8%
Attitude to bank
Positive
Negetive

22.Performance and service of the bank
Below table shows the satisfactory level of the bank with respect to the performance
and service of the bank.
Performance of the bank(Table 4.22)
Satisfied 11 22%
Dissatisfied 4 8%
Neutral 2 4%
Source:Primary data
From the above table,it is clear that majority of the respondents are satisfied with the
performance and service of the bank.Only 8% of the total respondents are dissatisfied with
this.88% of the respondents comes under the heading highly satisfied and satisfied.4% didn’t
replied for this.So we assume that the customer satisfaction level of the bank is higher.This
classification reveals the love and affection of respondents towards the bank.
Here is the graph showing satisfactory level of respondents with respect to the
performance and service of the bank.
Figure 4.22
66%
22%
8% 4%0%
10%
20%
30%
40%
50%
60%
70%
Highly satisfied Satisfied Dissatisfied Neutral
Performance of the bank

CHAPTER V
FINDINGS , SUGGESTIONS AND CONCLUSION
Findings
The following points were found from the study:
1. The categorisation of 50 respondents showed that 72% were males and 28%
representing females.
2. The age statistics indicated that least age groups were those above 55 years which was
represented 2% of the respondents sampled for the study.Additionally the highest age
groups from the study were those between 18-25 years.
3. In the case of marital status,majority of the respondents belongs to unmarried group.
4. Government employees,NRIs,Students and professionals most commonly use internet
banking services.Others were minority,
5. In terms of education,none of the respondents were without any formal education.The
most represented educational levels were those with a degree which was made up of
32%.This was followed by 38% of respondents who were with a masters degree.The
least represented educational level were those with basic education who were 6%.It
shows that highly qualified persons prefer internet banking more than that of others.
6. Middle class people prefer internet banking more.People having income in between
10000 and 30000 uses internet banking than others as per the study conducted.
7. Out of the internet banking services,withdrawal is the most preferred internet banking
service of SBI.
8. More than 3/4th
of the respondents are satisfied with the internet banking facilities of
SBI.
9. From the study,it is clear that internet banking reduces time wastage and increases
efficiency.
10. Majority (58%) of the respondents are unaware of the usage of internet banking.
11. Lack of knowledge about usge and fear about security are the major drawbacks of
internet banking.
12. The website performance of SBI is rated excellent.Also lion’s share are of the opinion
that the website of SBI is well organised,simple and reliable.
13. SBI’s website is always available for business.

14. A bulk portion of respondents (88%) tells that bank compensates when transactions
are not completed in time.
15. 92% of the respondents have a positive attitude to the bank and 88% are satisfied with
the performance and service of the bank.
16. The six dimensions of service quality – Speed of delivery, reliability, ease of use,
enjoyment, control and privacy lead to customer satisfaction with internet banking.
Suggestions
 Existing complaint resolving mechanism have to be retained.
 Existing customer – bank relationship to be maintained to get more customers.
 Proper feedback and follow up procedures to be introduced to delight the customers.
 Bank should educate the senior citizens regarding the use and services of internet
bankng.
 Bank can include a demo video on their website describing the procedures of various
internet banking services, so that more customers will use facilities like stop payment,
cheque book orders etc.
 Regarding the applying of loans through internet banking,bank should ease the
procedures , so that many will be able to apply online.
 Brand positioning have to be assigned for different type of customers.
 Adequate number of cash depository machines should be fixed in proper locations.
Conclusion
The study has analysed the overall perception of customers regarding the services of
internet banking.Age and qualification are the important demographic factors which used to
measure the perception of customers on internet banking services.The study conclude that
different age groop of customers have different perception towards the internet banking
services and the usage level of customers are different.So bank should concentrate on all the
age group of customers.It is also seen that different education group of customers have
different perception towards internet banking.There are good number of customers in every
group.Bank should educate the senior citizens about the usage of internet banking services.
The six dimensions of service quality – Speed of delivery, reliability, ease of use,
enjoyment, control and privacy lead to customer satisfaction with internet banking.Out of
total respondents,majority agreed that internet banking is convenient and flexible way of

banking and also have various transaction related benefits.Thus, providing internet banking is
increasingly becoming a “need to have” than a “nice to have” service.

Customer satisfaction of ebanking/online banking of SBI

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