1

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

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

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






2

CHAPTER NO PARTICULARS PAGE NO.
Introduction
1.1 Introduction to service sector 5
1.2 Service sector in India 6
1.3 Introduction to banking sector 7
1.4 Technologies in banking 10
1.5 Introduction to e banking 11
Review of Literature and Research design
2.1 Review of Literature. 15
2.2 Statement of the problem 16
2.4 Scope of the study 17
2.5 Objective of the study 17
2.6 Research methodology 17
2.7 Limitation of the study 19
2.8 Chapter Scheme 20
Profile of the Industry and Organization
Profile of the industry
3.1 Banking sector in India 22
Profile of the Organization
3.2 HDFC Bank 23
3.3 An introduction to E banking 29
3.4 Meaning of E banking 29
Results, Analysis and Discussions 35 - 65
Findings Suggestions and Conclusion 67-71

LIST OF TABLES
Table No. Description Page no.
4.1 Demographic profile of the respondents 35
4.2 Reason for opting HDFC bank services 37
4.3 Time period since HDFC services are availed 39
3

4.4 Awareness regarding HDFC bank 41
4.5 E banking services 43
4.6 Preference of E banking over money transaction 45
4.7 Accessibility of E banking service 47
4.8 Importance of E banking in daily activities. 49
4.9 Convenience of E banking 51
4.10 Satisfaction on charges implied on E banking 53
4.11 Adequacy of e banking services 55
4.12 Ranking of e banking services 57
4.13 Difficulties while logging onto account 59
4.14 Occasion on which find difficulties 61
4.15 Agreement regarding E banking 63



LIST OF FIGURES
FIGURE No. Description Page no.
4.1 Reason for opting HDFC bank services 38
4.2 Time period since HDFC services are availed 40
4.3 Awareness regarding HDFC bank 42
4.4 E banking services 44
4.5 Preference of E banking over money transaction 46
4.6 Accessibility of E banking service 48
4.7 Importance of E banking in daily activities. 50
4.8 Convenience of E banking 52
4.9 Satisfaction on charges implied on E banking 54
4.10 Adequacy of e banking services 56
4.11 Ranking of e banking services 58
4.12 Difficulties while logging onto account 60
4.13 Occasion on which find difficulties 62
4.14 Agreement regarding E banking 64

4












CHAPTER 1
INTRODUCTION









5

CHAPTER 1
1.1 INTRODUCTION TO SERVICE SECTOR

Service Sector is the lifeline for the social economic growth of a country. It is today the
largest and fastest growing sector globally contributing more to the global output and employing
more people than any other sector.
The real reason for the growth of the service sector is due to the increase in
urbanization, privatization and more demand for intermediate and final consumer services.
Availability of quality services is vital for the wellbeing of the economy. In advanced economies
the growth in the primary and secondary sectors are directly dependent on the growth of
services like banking, insurance, trade, commerce, entertainment etc.
The service sector is going through almost revolutionary change, it dramatically affects
the way in which we live and work. New services are continually being launched to satisfy
consumers existing needs and to meet the needs that they do not even know they had. Ten
years ago people did not anticipate the need for email, online banking, web hosting, online
reservation and many other new services, but today many of us feel we cannot survive without
them. Similar transformations are happening in Business to business marketing. Service
organisations vary widely in size. At one end are the huge international corporations operating
in industries such as tourism, airlines, banking, telecommunication etc whereas on the other
end of the scale is a vast array of locally owned and operated small businesses including
parlours , hotels , laundry and numerous business to business services.
How important is the service sector in an economy?
In most countries services add more economic value than agriculture, raw
materials and manufacturing combined.
6


In developed economies employment is dominated by service jobs and
most new job growth comes from services.
Jobs range from high paid professionals and technicians to minimum
wage positions.
Service organizations can be any size, from huge global corporations to
local small businesses.
Most activities by govt. agencies and nonprofit organization involve service.
1.2 Service Sector in India:
In alignment with the global trends, Indian service sector has witnessed a major boom
and is one of the major contributors to both employment and national income in recent times.
The activities under the purview of the service sector are quite diverse. Trading, transportation
and communication, financial, real estate and business services, community, social and
personal services come within the gambit of the service industry. Service sector in India
accounts for more than half of Indias GDP.
The various sectors that combine together to constitute service industry in India are
stated as under:
Trade
Hotels and restaurants
Railways
Other transport and storage
Communication (post and telecom)
Banking
Insurance
7

Dwellings, real estate
Business services
Public administrations, defence
Personal services
Community services
Other service

1.3 INTRODUCTION TO BANKING SECTOR
A bank is an institution that deals with money and credit. Different people understand
meaning of a bank in different ways. For a common man, bank is a storehouse where money is
stored, for a businessman it is a financial institution and for a day to day customer it is an
institution where he can deposit his savings. Banks play an important role in the economy of
any country as they hold the savings of the public. Provide means of payment for goods and
services and provide necessary finance for development of business and change. Thus bank is
a link in the flow of funds from the savers to the users hence they should render efficient
customer service in order to retain the present customers and also to attract the potential
customer.
In the past the banks did not face any attraction in the Indian economy because of the
low level of the economic activities and the little business prospects. Today we find positive
changes in the national business development policy. Earlier the moneylenders had a strong
hold over the rural population which resulted in exploitation of small and marginal savers. The
private sector banks failed in serving the society. This resulted in the nationalisation of 14
commercial banks in 1969.
8

There was a basic change in the banking concept with a beginning in the
nationalisation of big commercial banks. The involvement of public sector banks, transformed
the Indian economy.
The Indian banking can be broadly categorized into nationalized (government owned),
private banks and specialized banking institutions. The Reserve Bank of India acts a
centralized body monitoring any discrepancies and shortcoming in the system. Since the
nationalization of banks in 1969, the public sector banks or the nationalized banks have
acquired a place of prominence and has since then seen tremendous progress. The need to
become highly customer focused has forced the slow-moving public sector banks to adopt a
fast track approach. The unleashing of products and services through the net has galvanized
players at all levels of the banking and financial institutions market grid to look anew at their
existing portfolio offering. Conservative banking practices allowed Indian banks to be insulated
partially from the Asian currency crisis. Indian banks are now quoting a higher valuation when
compared to banks in other Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that
have major problems linked to huge Non Performing Assets (NPAs) and payment defaults. Co-
operative banks are nimble footed in approach and armed with efficient branch networks focus
primarily on the high revenue niche retail segments.
The Indian banking has finally worked up to the competitive dynamics of the new
Indian market and is addressing the relevant issues to take on the multifarious challenges of
globalization. Banks that employ IT solutions are perceived to be futuristic and proactive
players capable of meeting the multifarious requirements of the large customers base. Private
Banks have been fast on the uptake and are reorienting their strategies using the internet as a
medium The Internet has emerged as the new and challenging frontier of marketing with the
conventional physical world tenets being just as applicable like in any other marketing medium.
9

The Indian banking has come from a long way from being a sleepy business institution
to a highly proactive and dynamic entity. This transformation has been largely brought about
by the large dose of liberalization and economic reforms that allowed banks to explore new
business opportunities rather than generating revenues from conventional streams (i.e.
borrowing and lending). The banking in India is highly fragmented with 30 banking units
contributing to almost 50% of deposits and 60% of advances. Indian nationalized banks (banks
owned by the government) continue to be the major lenders in the economy due to their sheer
size and penetrative networks which assures them high deposit mobilization. The Indian
banking can be broadly categorized into nationalized, private banks and specialized banking
institutions.
The Reserve Bank of India acts as a centralized body monitoring any discrepancies
and shortcoming in the system. It is the foremost monitoring body in the Indian financial sector.
The nationalized banks (i.e. government-owned banks) continue to dominate the Indian
banking arena. Industry estimates indicate that out of 274 commercial banks operating in
India, 223 banks are in the public sector and 51 are in the private sector. The private sector
bank grid also includes 24 foreign banks that have started their operations here.
The liberalize policy of Government of India permitted entry to private sector in the
banking, the industry has witnessed the entry of nine new generation private banks. The major
differentiating parameter that distinguishes these banks from all the other banks in the Indian
banking is the level of service that is offered to the customer. Their focus has always centred
on the customer understanding his needs, pre-empting him and consequently delighting him
with various configurations of benefits and a wide portfolio of products and services. These
banks have generally been established by promoters of repute or by high value domestic
financial institutions.
10

The popularity of these banks can be gauged by the fact that in a short span of time,
these banks have gained considerable customer confidence and consequently have shown
impressive growth rates. Today, the private banks corner almost four per cent share of the
total share of deposits. Most of the banks in this category are concentrated in the high-growth
urban areas in metros (that account for approximately 70% of the total banking business). With
efficiency being the major focus, these banks have leveraged on their strengths and
competencies viz. Management, operational efficiency and flexibility, superior product
positioning and higher employee productivity skills.
The private banks with their focused business and service portfolio have a reputation
of being niche players in the industry. A strategy that has allowed these banks to concentrate
on few reliable high net worth companies and individuals rather than cater to the mass market.
These well-chalked out integrates strategy plans have allowed most of these banks to deliver
superlative levels of personalized services. With the Reserve Bank of India allowing these
banks to operate 70% of their businesses in urban areas, this statutory requirement has
translated into lower deposit mobilization costs and higher margins relative to public sector
banks.
The three major changes in the banking sector post liberalization are:

Step to increase the cash outflow through reduction in the statutory
liquidity and cash reserve ratio.

Nationalized banks including SBI were allowed to sell stakes to private
sector and private investors were allowed to enter the banking domain.
Foreign banks were given greater access to the domestic market, both as
subsidiaries and branches, provided the foreign banks maintained a
11

minimum assigned capital and would be governed by the same rules and
regulations governing domestic banks.

Banks were given greater freedom to leverage the capital markets and
determine their asset portfolios. The banks were allowed to provide
advances against equity provided as collateral and provide bank
guarantees to the broking community.




1.4 TECHNOLOGIES & INNOVATIONS IN BANKING
TECHNOLOGIES IN BANKING
Technology plays a very important role in banks internal control mechanisms as well
as services offered by them. It has in fact given new dimensions to the banks as well as
services that they cater to and the banks are enthusiastically adopting new technological
innovations for devising new products and services.
The latest developments in terms of technology in computer and telecommunication
have encouraged the bankers to change the concept of branch banking to anywhere banking.
The use of ATM and Internet banking has allowed anytime, anywhere banking facilities.
Automatic voice recorders now answer simple queries, currency accounting machines makes
the job easier and self-service counters are now encouraged. Credit card facility has
12

encouraged an era of cashless society. Today MasterCard and Visa card are the two most
popular cards used world over. The banks have now started issuing smartcards or debit cards
to be used for making payments. These are also called as electronic purse. Some of the banks
have also started home banking through telecommunication facilities and computer technology
by using terminals installed at customers home and they can make the balance inquiry, get the
statement of accounts, give instructions for fund transfers, etc. Through ECS we can receive
the dividends and interest directly to our account avoiding the delay or chance of losing the
post.
Today banks are also using SMS and Internet as major tool of promotions and giving
great utility to its customers. For example SMS functions through simple text messages sent
from your mobile. The messages are then recognized by the bank to provide you with the
required information.
All these technological changes have forced the bankers to adopt customer-based
approach instead of product-based approach.
ELECTRONIC BANKING:
With the introduction of computers in Indian banks and with the advent of ATMs the
banking services are provided across the banks. Customers need not necessarily visit the bank
to do banking transactions when the bank provides them with tele banking and or remote
banking facilities. This type of banking is called electronic banking and the concept is becoming
popular with individual as well as corporate entities in India.
1. Automated Teller Machines (ATMs):

13

ATMs have eliminated the time limitations of customer service and offer a host of
banking services including deposits, withdrawals, requisitions, instructions and transactions.
ATMs traditional and primary use is to dispense cash upon insertion of a plastic card and its
unique PIN or personal identification number. It is issued to Current and Saving account
holders of a bank who hold a certain minimum balance. When the card is inserted into the
ATM, the machine sensing equipment identifies the account holder and asks for his or her
identification PIN number .This number is not even known to the bank staff and is unique and
secret to the individual.
2. Internet Banking:
Banks have over a long time been using electronic and telecommunication network for
delivering a wide range of value added products and services. The delivery channels include
dial-up connection, private network, public network etc and the devices include telephone
personal computers including the ATM etc. With the popularity of PCs and easy access to the
internet and World Wide Web banks increasingly use internet as a channel for receiving
instructions and delivering their products and services to their customers. This form of banking
is often referred to as internet banking, although the range of products and services offered by
different banks, vary widely both in their content and sophistication.
3. Mobile Banking:
Through inter banking one can visit the web site of each bank by entering his
password and known the account balance and even pass his own credit and debit entries. This
means that we can do our banking through our personal computer settings at home. Banks
may soon allow zero balance savings accounts through internet facility only. Customers can
now make balance enquires download statements and open fixed deposits over the net. They
will soon be able to carry out all their transactions over the net. So visiting a bank would be
14

needless. Time to come; mobile phones will drive banking transactions. These mobile phones
will drive banking transactions. These mobile phones will be equipped with smart cards that are
embedded with banking and other information. This mobile phone banking facility is yet to
come but the mechanics of linking the banking with the cell phone is being sorted out. Teller
machines are being installed in the banks for the electronic banking facility. Banking will be on
wheels and mobile by the use of smart banking.
4. Note and coin counting machines:
To reduce the need of manual counting, note and counting machines are available
which counts a bundle of notes placed on it. Loose notes are inserted into the machine. The
machine then counts the notes at top speed, while simultaneously indicating the number
counted on a digital display. Every time the number reaches 100, the machine stops, subject to
it being fixed at 100 and allows for the bundle to be taken out. This machine does relieve the
drudgery involved in counting. However, one limitation of this machine is that the notes have to
be in fairly good condition for the machine to able to count properly. However, the machine
requires all the notes to be in the same denomination.
5. Electromagnetic Cards:
In the modern days of commerce credit cards have acquired a fairly prominent and
pervasive role. With the increasing use of credit cards the society is moving towards cashless
transactions. In India however the use of credit cards is restricted to small value and mostly
personal transactions. The two international credit card giants , Visa international and Master
Card international are poised to make deeper inroad in untapped Indian market.
Types of electromagnetic cards:
15

1) Charge card: In such cards transactions are accumulated over a period of time
generally a month and the total amount is charged i.e. debited to the account. In charge card
the amount becomes payable immediately on the debit to the account.
2) Credit card: This is the same as charge card where the transactions are charged to
the account with the total value of transaction debited to the card holders account once in a
month. The difference between the credit and charge card is that in case of the credit card
holder is given about 25 to 50 days time to credit his account in case there are insufficient
funds in his account at the time of debit.
3) Debit card: A bank-issued card that allows its users to access their funds for the
purpose of paying for merchandise.
4) Smart card: There are two types of smart cards intelligent memory chip and
microprocessor cards. The memory smart cards have been around for several years they are
being used in paying phones, identification, access control, voting and other applications.
Processer smart cards are the most advanced and are ideally suited for banking and financial
application where re use of the card is allowed.
5) Member card: This is used by members of a club or a chain of hotels. E.g. the Taj
Card is a card issued by the Management of the Taj group of Hotels to be used by patrons of
their hotels .Similarly there are many other types of cards where the usage is exclusive to the
members of the group.
Conclusion:
With the development of modern communication facilities, electronic payment systems
are becoming popular. These are teller machines available for bank customers within the bank
as well as outside the bank premises. ATMs which are being located even at public places, are
able to provide the customers minimal banking services including cash payments round the
clock. Shared ATMs are also introduced in India where the services are provided across the
16

banks. Customers need not necessarily visit the bank to do banking transactions when their
banker provides them tele-banking or remote banking facilities.
We have also seen that the various electronic and electro-mechanical aids that help
the modern banker to efficiently render innovative and novel customer service. Equipment like
note and coin counting machines help the banker to take care of the tedium in his task, reduce
drudgery and at the same time efficiently discharge his functions. These technological aids not
only take care of some of the physical routine tasks but also contribute substantially to efficient
housekeeping functions and also render services that are in tune with the customer needs and
satisfaction.












17






CHAPTER 2
REVIEW OF LITERATURE AND RESEARCH DESIGN













18

2.1 LITERATURE REVIEW
Internet and the Banking System
The rapid growth of the Web creates a tremendous opportunity for new businesses,
but also requires a new way of viewing the market place for the community banker. Experts
estimates that consumer use of e banking services will increase over 20-fold by the end of the
century. Geography and the number of branches become irrelevant and community banks are
able to offer the same level of service and convenience to customers as the largest banks. In
the past, over 60% of existing bank customers have cited their bank selection to be based on
convenience of location. For the customers of today, convenience of location includes the
availability of 24-hour access via the Internet. (Wilson, 1996)

Seitz and Stickel (1999) considered that financial service companies are using the
Internet as a new distribution channel. The goals are:

complex products may be offered in an equivalent quality with lower costs to more
potential customers

there may be contacts from each place of earth at any time of day and night
Seybold (1998) identifies 8 critical success factors for electronic banking:

Own the customers total experience

Streamline business processes that impact the customer

Provide a 360-degree view of customer relationship
19


Let customers help themselves

Help customers do their job

Deliver personalized service
The Indian Internet Banking Journey In 2001, a Reserve Bank of India survey
revealed that of 46 major banks operating in India, around 50% were either offering Internet
banking services at various levels or planned to in the near future. According to a research
report,( India Research, Kotak Securities, May 2000.) while in 2001, India's Internet user base
was an estimated 9 lakh; it was expected to reach 90 lakh by 2003. Also, while only 1% of
these Internet users utilized the Internet banking services in 1998, the Internet banking user
base increased to 16.7% by mid- 2000.
Joseph et al. (1999)investigated the influence of internet on the delivery of banking
services. They found six underlying dimensions of e-banking service quality such as
convenience and accuracy, feedback and complaint management, efficiency, queue
management, accessibility and customization
Jun and Cai (2001) identified 17 service quality dimensions of i-banking service
quality. These are reliability, responsiveness, competence, courtesy, credibility, access,
communication, understanding the customer, collaboration, continuous improvement, content,
accuracy, ease of use, timeliness, aesthetics, security and divers features. They also
suggested that some dimensions such as responsiveness, reliability and access are critical for
both traditional and internet banks.
20

2.2 STATEMENT OF THE PROBLEM
E-banking means any user with a personal computer and a browser can get
connected to his bank website to perform any of the virtual banking functions. In E banking
system the bank has a centralized database that is web-enabled. All the services that the bank
has permitted on the internet are displayed in menu. Any service can be selected and further
interaction is dictated by the nature of service. Once the branch offices of bank are
interconnected through terrestrial or satellite links, there would be no physical identity for any
branch
The study is made taking consideration of E- Banking of HDFC bank. It investigates
about all applications of E- Banking offered by HDFC bank. General consumers have been
significantly affected in a positive manner by E-banking. Many of the ordinary tasks have now
been fully automated resulting in greater ease and comfort. The study would help in
determining the usefulness of E- Banking as perceived by customer of HDFC bank. Customer
acceptance and Satisfaction experienced in e- banking is also an area of research.
2.3 SCOPE OF THE STUDY
The area of study is restricted to customers of HDFC bank branch Mathikere.
2.4 OBJECTIVES OF STUDY
To study the awareness of E BANKING among the customers HDFC bank
To know usage habits of customers of HDFC bank
Find the customer satisfaction relating to E - Banking service.
To study the problems faced by the customers in availing the E BANKING facilities and
to find out remedial measures

21

2.5 Research Methodology
The data collected from questionnaire will be tabulated and analysed so that it can
easily understand to the user.
There are a number of ways to be used to present the result of findings are:-
o Pie-chart
o Graphs
SAMPLING PLAN
Since it is not possible to study whole universe, it becomes necessary to take sample from
the universe to know about its characteristics.
Sampling Units
In this project sampling unit consisted of the various individuals who had their bank
accounts with HDFC Bank.
Sample Technique
The sampling technique used is quota sampling. For this purpose 100 customers of
HDFC bank are taken. Among this 60 % of customers belongs to age group 20 35,
20% of customers belongs to age group 35 50 and remaining 20 % belongs to age
above 50 years
Research Instrument: Structured Questionnaire.
Contact Method: Personal Interview.
SAMPLE SIZE:
100 customers of HDFC bank are taken as sample.


22

DATA COLLECTION INSTRUMENT DEVELOPMENT:
The mode of collection of data will be based on Primary as well as Secondary data.
Primary data:
Primary data collection will base on personal interview of customers and people linked
with HDFC. The questionnaire according to the necessity of the data is collected.
Secondary data:
Collection of information from HDFC website and different various websites related to
E-banking.
2.5 Limitation of Study
1. Non representative sample: In this research project a sample survey was conducted.
A sample of 100 respondents was selected. So such sample size cannot be said to be
the true representative of the universe.
2. Shortage of time: The time period of study was very limited. It is very difficult to have
in detail study on project work due to limited time period. The period of 4 to 6 weeks is
not enough for the proper study of the project.
3. Inadequate data: The data provided was not up to the mark due to which we
faced problems in our research.
4. Lack of scientific method: The lack of scientific training in methodology of
research was great impediment in our research program, which led to the
delay of research.
5. Biasness in the responses: The answers provided by the respondents suffer
from biasness.


23

2.6 Chapter Scheme :
The chapter scheme for the project is as follows:
1. Introduction
a. Introduction to service sector
b. Service sector in India
c. Introduction to banking sector
d. Technologies in banking
e. Introduction to e banking
2. Research design
a. Problem statement
b. Objectives
c. Scope of the study
d. Methodology
e. Limitations
3. Profile of Organization / Industry
Profile of the industry
a. Banking sector in India
Profile of the Organisation

a. HDFC Bank
b. An introduction to E banking
c. Meaning of E banking
4. Results, Analysis and Interpretation
5. Findings, Recommendations and Conclusion

24

.











CHAPTER 3

PROFILE OF THE INDUSTRY AND ORGANISATION











25

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


26

PROFILE OF THE COMPANY
3.2 HDFC BANK
The Housing Development Finance Corporation Limited (HDFC) was amongst the first
to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The
bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered
office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank
in January 1995.
PROMOTER
HDFC is India's premier housing finance company and enjoys an impeccable track
record in India as well as in international markets. Since its inception in 1977, the Corporation
has maintained a consistent and healthy growth in its operations to remain the market leader in
mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has
developed significant expertise in retail mortgage loans to different market segments and also
has a large corporate client base for its housing related credit facilities. With its experience in
the financial markets, a strong market reputation, large shareholder base and unique consumer
franchise, HDFC was ideally positioned to promote a bank in the Indian environment.
BUSINESS FOCUS
HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build
sound customer franchises across distinct businesses so as to be the preferred provider of
banking services for target retail and wholesale customer segments, and to achieve healthy
growth in profitability, consistent with the bank's risk appetite. The bank is committed to
maintain the highest level of ethical standards, professional integrity, corporate governance and
27

regulatory compliance. HDFC Bank's business philosophy is based on four core values
Operational Excellence, Customer Focus, Product Leadership and People.
DISTRIBUTION NETWORK
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable
network of over 1229 branches spread over 444 cities across India. All branches are linked on
an online real-time basis. Customers in over 120 locations are also serviced through Telephone
Banking. The Bank's expansion plans take into account the need to have a presence in all
major industrial and commercial centers where its corporate customers are located as well as
the need to build a strong retail customer base for both deposits and loan products. Being a
clearing/settlement bank to various leading stock exchanges, the Bank has branches in the
centers where the NSE/BSE has a strong and active member base. The Bank also has a
network of about over 2526 networked ATMs across these cities. Moreover, HDFC Bank's ATM
network can be accessed by all domestic and international Visa/MasterCard, Visa
Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.
TECHNOLOGY
HDFC Bank operates in a highly automated environment in terms of information
technology and communication systems. All the bank's branches have online connectivity,
which enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch
access is also provided to retail customers through the branch network and Automated Teller
Machines (ATMs).
The Bank has made substantial efforts and investments in acquiring the best
technology available internationally, to build the infrastructure for a world class bank. The
Bank's business is supported by scalable and robust systems which ensure that our clients
always get the finest services we offer.
28

The Bank has prioritized its engagement in technology and the internet as one of its
key goals and has already made significant progress in web-enabling its core businesses. In
each of its businesses, the Bank has succeeded in leveraging its market position, expertise and
technology to create a competitive advantage and build market share.
PRODUCT SCOPE
HDFC Bank offers a bunch of products and services to meet the every need of the
people. The company cares for both, individuals as well as corporate and small and medium
enterprises. For individuals, the company has a range accounts, investment, and pension
scheme, different types of loans and cards that assist the customers. The customers can
choose the suitable one from a range of products which will suit their life-stage and needs.
For organizations the company has a host of customized solutions that range from
Funded services, Non-funded services, Value addition services, Mutual fund etc. These
affordable plans apart from providing long term value to the employees help in enhancing
goodwill of the company.
The products of the company are categorized into various sections which are as follows:
Accounts and deposits.
Loans.
Investments and Insurance.
Forex and payment services.
Cards.
Customer center.


29

BUSINESS SEGMENTS
HDFC Bank offers a wide range of commercial and transactional banking services and
treasury products to wholesale and retail customers. The bank has three key business
segments:
(i) Wholesale Banking Services
The Bank's target market ranges from large, blue-chip manufacturing companies
in the Indian corporate to small & mid-sized corporate and agro-based businesses. For
these customers, the Bank provides a wide range of commercial and transactional
banking services, including working capital finance, trade services, transactional
services, cash management, etc. The bank is also a leading provider of structured
solutions, which combine cash management services with vendor and distributor
finance for facilitating superior supply chain management for its corporate customers.
Based on its superior product delivery / service levels and strong customer orientation,
the Bank has made significant inroads into the banking consortia of a number of
leading Indian corporates including multinationals, companies from the domestic
business houses and prime public sector companies. It is recognized as a leading
provider of cash management and transactional banking solutions to corporate
customers, mutual funds, stock exchange members and banks.
(ii) Retail Banking Services
The objective of the Retail Bank is to provide its target market customers a full
range of financial products and banking services, giving the customer a one-stop
window for all his/her banking requirements. The products are backed by world-class
service and delivered to the customers through the growing branch network, as well as
30

through alternative delivery channels like ATMs, Phone Banking, Net Banking and
Mobile Banking.
The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus
and the Investment Advisory Services programs have been designed keeping in mind
needs of customers who seek distinct financial solutions, information and advice on various
investment avenues. The Bank also has a wide array of retail loan products including Auto
Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It
is also a leading provider of Depository Participant (DP) services for retail customers,
providing customers the facility to hold their investments in electronic form.
HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the MasterCard Maestro debit card as
well. The Bank launched its credit card business in late 2001. By September 30, 2005, the
bank had a total card base (debit and credit cards) of 5.2 million cards. The Bank is also
one of the leading players in the "merchant acquiring" business with over 50,000 Point-of-
sale (POS) terminals for debit / credit cards acceptance at merchant establishments.
(iii) Treasury
Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalization of the financial markets in India, corporates need more sophisticated risk
management information, advice and product structures. These and fine pricing on various
treasury products are provided through the bank's Treasury team. To comply with statutory
reserve requirements, the bank is required to hold 25% of its deposits in government
securities. The Treasury business is responsible for managing the returns and market risk
on this investment portfolio.
31

BUSINESS STRATEGY
HDFC BANK mission is to be "a World Class Indian Bank", benchmarking themselves
against international standards and best practices in terms of product offerings, technology,
service levels, risk management and audit & compliance. The objective is to build sound
customer franchises across distinct businesses so as to be a preferred provider of banking
services for target retail and wholesale customer segments, and to achieve a healthy growth in
profitability, consistent with the Bank's risk appetite. Bank is committed to do this while
ensuring the highest levels of ethical standards, professional integrity, corporate governance
and regulatory compliance. Continue to develop new product and technology is the main
business strategy of the bank. Maintain good relation with the customers is the main and prime
objective of the bank.
HDFC BANK business strategy emphasizes the following:
Increase market share in Indias expanding banking and financial services
industry by following a disciplined growth strategy focusing on quality and not on
quantity and delivering high quality customer service.
Leverage our technology platform and open scalable systems to deliver
more products to more customers and to control operating costs.
Maintain current high standards for asset quality through disciplined credit risk
management.
Develop innovative products and services that attract the targeted
customers and address inefficiencies in the Indian financial sector.
Continue to develop products and services that reduce banks cost of funds.
Focus on high earnings growth with low volatility.

32

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

3. 3 AN INTRODUCTION TO E BANKING
With cyber cafes and kiosks springing up in different cities access to the Net is going to
be easy. E banking is the latest in this series of technological wonders in the recent past
involving use of Internet for delivery of banking products & services. Even the Morgan Stanley
Dean Witter Internet research emphasized that Web is more important for retail financial
services than for many other industries.
E banking is changing the banking industry and is having the major effects on banking
relationships. Banking is now no longer confined to the branches were one has to approach
the branch in person, to withdraw cash or deposit a cheque or request a statement of
accounts. In true Internet banking, any inquiry or transaction is processed online without any
33

reference to the branch (anywhere banking) at any time. Providing Internet banking is
increasingly becoming a "need to have" than a "nice to have" service. The net banking, thus,
now is more of a norm rather than an exception in many developed countries due to the fact
that it is the cheapest way of providing banking services.
3.4 MEANING OF E BANKING
E banking is a concept which enables everyone to conduct business with a bank from
the comfort of home or office.
E banking means application of electronic technology towards transfer of funds
through an electronic terminal, computer or magnetic tape to conduct various transactions like
cash receipts, payments, transfer of funds, etc. It is often known as banking on net or e
banking.
DEVELOPMENT OF E BANKING IN INDIA
The financial reforms that were initiated in the early 1990s and the globalization and
liberalization measures brought in a completely new operating environment to the banks. The
bankers are now offering innovative and attractive technology-based services and products
such as Anywhere Anytime Banking, Tele-Banking, Internet Banking, Web Banking, Net
Banking, Mobile Banking, etc. to their customers to cope with the competition. The process
started in the early 1980s when Reserve Bank of India (RBI) set up two committees in quick
succession to accelerate the pace of automation of operations in the banking sector. A high-
level committee was formed under the chairmanship of Dr. C. Rangarajan, then Governor of
RBI, to draw up a phased plan for computerization and mechanisation in the banking industry
over a five-year time frame of 19851989. The focus by this time was on customer service and
two models of branch automation were developed and implemented. Having gained experience
in the earlier mode of computerization, the second Rangarajan committee constituted in 1988
34

drew up a detailed perspective plan for computerization of banks and for extension of
automation to other areas such as funds transfer, e-mail, BANKNET, SWIFT, ATMs, net
banking, etc. The Government of India enacted the Information Technology Act, 2000
(generally known as IT Act, 2000), with effect from 17 October 2000 to provide legal recognition
to electronic transactions and other means of electronic commerce. RBI had set up a Working
Group on net banking to examine different aspects of net banking. The Group had focused on
three major areas of net banking such as
(1) technology and security issues,
(2) legal issues and
(3) regulatory and supervisory issues.
RBI had accepted the recommendations of the Working Group, and accordingly
issued guidelines on E banking in India for implementation by banks. The Working Group has
also issued a report on net banking covering different aspects of net banking.
Internet banking in India is currently at a nascent stage. While there are scores of
companies specialising in developing internet banking software, security software and website
designing and maintenance, there are few online financial service providers. ICICI bank is the
first one to have introduced net banking for a limited range of services such as access to
account information, correspondence and, recently, funds transfer between its branches. ICICI
is also getting into e-trading, thus offering a broader range of integrated services to the
customer.
Several finance portals for provision of non-banking financial services, e-trading and e-
broking have come up. Commercial applications such as Electronic Bill Presentment (EBP) and
Procurement systems may not be introduced in India immediately, but are likely to have a
35

greater impact than the retail applications. The corporate sector is adequately computerized
and has already recognized the important role of e-commerce in future. Increasingly,
companies are setting up websites even where there are no immediate tangible benefits to
them from doing so.
E BANKING IN INDIA RBI GUIDELINES
In India, internet banking or net banking is in rudimentary stage. In order to promote
safety and soundness of internet banking activities, the RBI constituted a Working Group on E
Banking. The Group issued guidelines in June 2001. The Group divided the internet banking
products in India into 3 types based on the levels of access granted. They are
Information Only System
Electronic Information Transfer System
Fully Electronic Transactional System.
ADVANTAGES AND DISADVANTAGES OF E BANKING
Internet Banking also has its advantages and disadvantages. Below are mentioned the
most popular advantages of using Internet Banking along with some unavoidable
disadvantages.
The advantages include
Convenience - online banking sites never close; they're available 24 hours a
day, seven days a week, and they're only a mouse click away;
Portability you now have access to money whenever there is an emergency,
whether or not you are in the country;
Transaction speed - online bank sites generally execute and confirm
transactions at the same rate or quicker than, ATM processing speeds;
36

Effectiveness they offer sophisticated tools, including account aggregation,
stock quotes and rate alerts to help you manage all of your assets more effectively.
Reduction in workload - No more standing in long lines at the bank, eliminating
endless paper based bank statements.
The disadvantages include
Lack of Computerization - which relates to virtual banks, revolves around the lack of
ATMs;
Start-up may take time - In order to register for your bank's online program, you will
Probably have to provide ID and sign a form at a bank branch which can be time
consuming;
Learning curve - Banking sites can be difficult to navigate at first;
Distrust of the User - the possibility of frauds, making errors etc.
Problem of Security Various sites are not properly looked at to ensure whether
customers money is safe in cyber world or not.
TRADITIONAL BANKING VS E BANKING
E banking or internet banking works much like traditional banking. The primary
difference is that in net banking account and information is accessed, payments are made and
statements reconciled using computer rather than paper or the phone to complete transactions.
Instead of going down to local branch office when one bank online he/she can accomplish
multiple tasks at once with the click of a button.
E banking is rapidly becoming more and more popular as consumers recognize the
advantages online banking has to offer. For one most banks charge fewer fees if you take
advantage of their online banking services
37

E BANKING SERVICE AT HDFC BANK
E banking is HDFC Bank's Internet Banking service. It provides up-to-the-second
account information. E banking lets the customer manage his/her account from the comfort of
his/her mouse - anytime, anywhere. Net Banking services provides access to account
information, products and other services (including transactions of non-financial and financial in
nature) as advised by the Bank from time to time to the customers through the website of the
Bank. Net Banking Services also include the services for Demat account, Credit Cards and
loan on the website of the Bank.
The HDFC Bank web site (www.hdfcbank.com) also features two versions of a demo
facility - one "interactive" and the other "guided" - making it possible for even Internet illiterates
to get comfortable with its services.
On the downside, however, 'registration' for the service involves downloading of a form
that needs to be posted/delivered to any of its branches - not exactly "web savvy" as we would
call it. Also, the form itself requires Adobe Acrobat Reader to be installed and the file size will
exceed 5.5 MB, which translates roughly into an hour or more of on-line time. Its 3-question
FAQ page also assumes a high level of computer knowledge from users ... not consistent with
the rest of the website.






38




CHAPTER 4

RESULT, ANALYSIS AND INTERPRETATION















39

STATEMENT 1 Demographic Profile of The Respondents
Table no 1 Demographic Profile of the Respondents
Demographics

Number of Respondents

Percentage of
Respondents
Age:
20 35 yrs
35 50 yrs
50 yrs and above


60
20
20



60 %
20 %
20 %


TOTAL 100 100 %
Qualification:
Graduate
Post Graduate
SSLC
PUC
Others

35
40
7
18
0
35 %
40 %
7 %
18 %
TOTAL
100
100 %

Occupation:
Student

25

25 %
40


Analysis:
From the data collected it was found majority of respondents that is 60%
belonged to the age of 20 to 35 years, followed by the age group of 35 to 50 years and
above. It was found that the majority of the respondents were graduates and post
graduates. It was found that the majority of the respondents were students,
professional and employed people..
Interpretation
It can inferred that youth are using e banking facilities more than
others.
It can be concluded that the majority of the respondents were
knowledgeable and were well informed about the banking services.






Professional
Self Employed
Employed
Retired
25
18
20
12
25 %
18 %
20 %
12 %

TOTAL 100 100 %
41

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

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


Reason Number of respondents
Percentage of
respondents
Service is good
They provide security
Cheaper service fees
Effective network
good customer
relationship
18
20
30
15
17

18%
20 %
30%
15 %
17 %
Total 100 100 %

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





42

Figure 1 : What are your reasons for opting for services of HDFC bank


INTERPRETATION:
HDFC bank is providing many services to its customers.

It can be inferred that the HDFC bank is providing good services to its
customers and customers are satisfied with their services.

It can be concluded that HDFC bank is very keen on providing good services
for its customers.





0
5
10
15
20
25
30
service is
good
they provide
security
cheaper
service fees
effective
network
good relation
18
20
30
15
17
Series 1
43

STATEMENT 3: TIME PERIOD SINCE THE HDFC BANKS SERVICES ARE BEING
AVAILED
Table 3 Time period since the HDFC Banks services are being availed
Time Period Number of respondents
Percentage of
respondents
Less Than 2 years
2 5 years
5 10 years
More Than 10 years
9
18
31
42
9 %
18 %
31 %
42 %
Total 100 100 %

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








44

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

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


0
5
10
15
20
25
30
35
40
45
less than 2
years
2 - 5 years 5 - 10 years more than 10
years
9
18
31
42
Series 1
45

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

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










46

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

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

It can be inferred that HDFC bank had taken enough measures to create awareness
on e banking among its customers.








0
10
20
30
40
50
60
70
80
90
YES NO
81
4
Series 1
47

Statement 5 : What are the e-banking services you use provided by the bank?
Table 5: What are the e-banking services you use provided by the bank?
Services
Number of
respondents
Percentage of
respondents
Transfer funds between
accounts
Online tax payment
Pay bills
check account balance
23
10
41
26

23 %
10 %
41 %
26 %


Total 100 100 %

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






48

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

Interpretation:
It can be inferred that most of the customers prefer e banking for payment of bills.

It can concluded that HDFC banks customers log onto to their account for various
services provided by the bank.

0
5
10
15
20
25
30
35
40
45
Fund transfer pays bill online tax
payment
check
account
balance
23
41
10
26
Series 1
49

Statement 6 : Do you prefer e banking over money transactions
Table 6 : Do you prefer e banking over money transactions

Preference Number of respondents
Percentage of
respondents
Yes
No
65
35
65 %
35 %
Total 100 100 %

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










50

Figure 5: Do you prefer e banking over money transactions

Interpretation:
It can be inferred that the majority of the respondents prefer using E banking
service rather than dealing with money transactions.
It can be concluded tha HDFC bank is providing e banking facilities rather than
money transactions which is very useful to its customers.





Series 1
0
10
20
30
40
50
60
70
YES NO
65
35
Series 1
51

Statement 7 : Accessibility of E Banking Facility provided by HDFC Bank
Table 7: Accessibility of E Banking Facility provided by HDFC Bank
Accessibility Number of respondents
Percentage of
respondents
Yes
No
81
19
81 %
19 %
Total 100 100 %

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









52

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

Interpretation:
It can be inferred that customers can use e banking easily.
It can be inferred that HDFC bank creates the e banking services which is accessible
to its customers.
It can be concluded that HDFC bank is very much keen on providing the accessibility
of e banking to its customers.







Series 1
0
20
40
60
80
100
YES NO
81
19
Series 1
53

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

Importance in daily banking
activities
Number of
respondents
Percentage of
respondents
Extremely significant
Significant
moderately significant
less significant
Not significant at all
10
25
26
33
6
10%
25 %
26 %
33 %
6 %
Total 100 100 %

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



54

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



Interpretation:
It can be inferred that importance of e banking in customers daily banking varies
according to their needs.
It can be inferred that customers dealing with more money transactions their
importance will increase.
It can be concluded that HDFC bank provide good facilities so that customers
significance level of using e banking goes on increasing




0
5
10
15
20
25
30
35
extremely
significant
significant moderately
significant
Less
Significant
not at all
significant
10
25
26
33
6
Series 1
55

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

Agreement Number of respondents
Percentage of
respondents
Yes
No
72
28
72 %
28 %
Total 100 100 %

Analysis
Of the data collected it was found that the majority of the respondents that is 78% is
convenient and 28 % says it is not convenient.
Figure 7: Do you think that E Banking is convenient?



0
10
20
30
40
50
60
70
80
YES NO
72
28
Series 1
56

INTERPRETATION:
It can be inferred that the majority of the respondents felt that e banking is
convenient. Because it saves a lot of time by without regularly visiting the bank
branches.
It can be concluded that HDFC designed its e banking website so that it is fitting in
well with the customers need.



57

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

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

Agreement Number of respondents
Percentage of
respondents
Yes
No
63
37
63 %
37 %
Total 100 100 %

Analysis
Of the data collected it was found that the most of the respondents that is 63% was
satisfied with charges imposed on e banking and 37 % were not satisfied.
Figure 8 .Are you satisfied with the charges imposed on e banking services of HDFC
bank

0
10
20
30
40
50
60
70
Satisfied Not satisfied
63
37
Series 1
58

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






59

STATEMENT 11 Are the E banking services being offered adequate?

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

Agreement Number of respondents
Percentage of
respondents
Yes
No
63
37
63 %
37 %
Total 100 100 %

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

60

Figure 9. Are the E banking services being offered adequate



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





0
10
20
30
40
50
60
YES NO
60
40
Series 1
61

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

Difficulties
Number of
respondents
Percentage of
respondents
excellent
above average
average
below average
poor
23
31
30
14
2
23%
31%
30 %
14 %
2%
Total 100 100 %

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





62

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



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





0
5
10
15
20
25
30
35
excellent above
average
average below
average
poor
23
31
30
14
2
Series 1
63

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

Frequency Number of respondents
Percentage of
respondents
All the time
Sometimes
infrequently
not at all

12
23
25

40
12%
23%
25%
40%
Total 81 100 %

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






64

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


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




0
5
10
15
20
25
30
35
40
At all times sometimes infrequently Not at all
12
23
25
40
Series 1
65

STATEMENT 14: On which occasions would you find difficulties while logging?
Table 14: On which occasions would you find difficulties while logging?

Difficulties
Number of
respondents
Percentage of
respondents
Logging in to your account
Making transactions
Security issues
Unable to understand webpages
Regularly changing the IPIN and
Password
11
33
40
7
9



11%
33 %
40 %
7%
9 %
Total 100 100 %

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


66

Figure 12: On which occasions would you find difficulties while logging?

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







Series 1
Series 2
0
10
20
30
40
11
33
40
7
9
Series 1
Series 2
67

STATEMENT 15: E Banking service being better than traditional banking?
Table 15: Agreement regarding Net Banking service being better than traditional
banking?
Agreement Number of respondents
Percentage of
respondents
Yes
No
64
36
64 %
36 %
Total 100 100 %

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









68

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


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



64
36
0
10
20
30
40
50
60
70
YES NO
Series 2
Series 1
69

HYPOTHESIS TESTING
H0 : There lies no significant relationship between the types of e banking services provided by
the bank and occupation of the customer.
H1 : There lies significant relationship between the type of e banking services provided by the
bank and occupation of the customer.
At 5 % significant level the degree of freedom is given by
( r 1 ) x ( c 1 )
( 5 1 ) x ( 4 1 )
Calculated value = 4.506
Table value = 21.03
Inference
As the calculated value is lesser than the table value, H0 is accepted and hence it is
concluded that there lies no significant relationship between the types of e banking services
provided by the bank and occupation of the customer.







70





CHAPTER 5

SUMMARY OF FINDINGS, RECOMMENDATIONS AND
CONCLUSION













71

FINDINGS
1) Majority of the respondents were knowledgeable and well informed about the E
banking services.
2) Majority of the respondents agreed HDFC bank services are cheap.
3) Most of respondents have been HDFC banks customers for more than 10 years.
4) Majority of customers were aware of E banking services of HDFC bank.
5) Most of respondents used E banking to pay bills.
6) Most of respondents preferred e banking over money transactions.
7) Most of the respondents agreed E banking is accessible to them.
8) Most of the respondents agreed E banking had moderate significant in their daily
activities.
9) Majority of respondents agreed E banking is convenient.
10) Most of the respondents are satisfied with charges implied on E banking services.
11) Most of the respondents agreed services offered by the bank are adequate.
12) HDFC banks users rate the E banking facilities as an average one when compared to
other banks.
13) Most on respondents did not find difficulties while logging onto the account.
14) Majority of respondents faced security as a major difficulty they faced while using E
banking.
15) Most of the respondents felt that E banking service was better than traditional
banking.



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SUGGESTIONS
1 . Effective awareness on E banking: Effective awareness campaigns should be
undertaken by the banks to make their customers more aware of E banking service.
2 . Use upgraded technology: The bank should adopt more upgraded technique to
make their customer feel more secure while accessing their accounts. The security technologies
like firewall, antivirus and intrusion detection prevention etc. must be adopted by the bank.
3 . Provide more facilities: The bank should make an effort to provide awareness from
where the customers can access different accounts at single time without extra charge.
4. Introduce new services: The HDFC bank should introduce more services which can
be accessed through E Banking advice on investment, TDS, etc.
5 . Provide discount on shopping: Provide discounts on shopping through E banking so
that the customers will use e banking facilities for shopping.
6 . Mobile App : The HDFC bank must create new mobile app that takes care everyday
banks needs and trade in real time



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CONCLUSION
E banking has become a necessary survival weapon and is fundamentally changing
the banking industry worldwide. Today, the click of the mouse offers customers banking
services at a much lower cost and also empowers them with unprecedented freedom in
choosing vendors for their financial service needs. No country today has a choice whether to
implement e banking or not given the global and competitive nature of the economy. Banks
have to upgrade and constantly think of new innovative customized packages and services to
remain competitive. The invasion of banking by technology has created an information age and
commoditization of banking services.
Banks have come to realize that survival in the new economy depends on delivering
some or all of their banking services on the Internet while continuing to support their traditional
infrastructure. The rise of e banking is redefining business relationships and the most
successful banks will be those that can truly strengthen their relationship with their customers.
Without any doubt, the international scope of E banking provides new growth perspectives and
Internet business is a catalyst for new technologies and new business processes with rapid
advances in telecommunication systems and digital technology.
E banking has become a strategic weapon for banks to remain profitable. It has been
transformed beyond what anyone could have foreseen 25 years ago. However, banks are
uncertain about the regulatory framework for conducting online-business and the regulatory
and taxation issues for governing cyberspace presents formidable problems. Developing such
a system is not easy as the Internet is not organized geographically and it is almost
meaningless to refer to a website as national or local. Any successful attempt at governing
cyberspace will involve significant international cooperation. Tax issues are being dealt with
through O.E.C.D codes along with intergovernmental cooperation. The Indian experience of e
74

banking is gradually merging with its international counterparts. While the private sector and
foreign banks have been fast in adopting Internet technology in client servicing, there is a
gradual trend for the major public sectors and numerous cooperative units to move in the same
direction. A mix of policy support and security assurance should propel further E banking
adoption in India.




75

BIBLIOGRAPHY
BOOKS
Rimpi Jatana, R. K. Uppal E-banking in India: Challenges and Opportunities
Jayshree Bose E- Banking in India
Maheswari and Paul, Indian banking, Sulthan Chand Publication
Kothari CR: Research Methodology 2005 edition, Tata McGraw-Hill.

Websites
www.hdfcbank.com
www.wikipedia.org
References
The Indian Internet Banking Journey - Nachiket Mor, Head of ICICI's Treasury.
International Journal of Bank Marketing, Vol. 19 Iss: 7, pp.276 - 291
Joseph Henrich et al., ed., 2004. Foundations of Human Sociality. Oxford.






76

ANNEXURE
QUESTIONNAIRE
1. What are your reasons for opting for services of HDFC bank

a) Service is good ( ) b) They provide security ( )
c) Cheaper service fees ( ) d) Effective network ( )
e) Good relationship with the customer

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

a) Less Than 2 years ( ) b) 2 5 years ( )
c) 5 10years ( ) d) More Than 10 years ( )

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

a) YES ( ) b) NO ( )

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

a) Fund transfer ( ) b) Pay bills( )
c) Online Tax payment ( ) d) Check account balance( )

5. Do you prefer e banking over money transactions?

a) YES ( ) b) NO ( )

6. How frequently do you use E Banking service in a month?
a) Less than once ( ) b) 1 to 3 times ( )
c) 3 to 8 times ( ) d) 8 to 15 times ( )


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7. How important would E Banking be in your daily banking activities?
a ) Extremely significant ( ) b) Significant ( ) c) moderately significant ( )
d) Less significant ( ) Not significant at all ( )
8. Do you think that E Banking is convenient?
a) YES ( ) b) NO ( )
9. Are you satisfied with the charges imposed on e banking services of HDFC bank?

a) Satisfied ( ) b) Not Satisfied ( )

10. Are the E banking services being offered adequate?
a) YES ( ) b) NO ( )
11. Accessibility of Net Banking Facility provided by HDFC Bank?
a) YES ( ) b) NO ( )
12. How do you rank e banking facilities of HDFC in compare to other banks?
a) Excellent ( ) b) above average ( ) c) average ( )
d) Below average ( ) e) Poor( )
13. Have you had difficulty logging onto the bank's website?
a) At all times( ) b) Sometimes ( )
c) Infrequently ( ) d) Not at all ( )
14. Do you face any problems in e banking
Yes ( ) No ( )

If yes on which of the following occasions
a) Logging in to your account ( ) b) Making transactions( )
c) Security issues ( ) d) Unable to understand webpages ( )
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e) Regularly changing the PIN and Password ( )
15. Agreement regarding E Banking service being better than traditional banking?

a) YES ( ) b) NO ( )


CALCULATION

E banking
services
Students Professiona
ls
Employed Self employed Retired
Transfer between
funds
8 9 3 5 3
Online tax payment 7 8 5 5 3
Pays bill 6 4 6 5 3
Check account
balance
2 4 4 5 5


CROSS TABULAR CALCULATION

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


79

O E ( O E ) ( O E )
2
( O E )
2
/ E
15 12.88 2.12 4.494 .349
17 14 3 9 .643
8 10.080 -2.08 4.326 .429
10 11.2 -1.2 1.4 .129
6 7.84 -1.84 3.386 .432
8 10.12 -2.12 4.494 .444
8 11 -3 9 .818
10 7.92 2.08 4.32 .546
10 8.8 1.2 1.44 .164
8 6.16 1.84 3.380 .550
4.504














80

APPENDIX
Registration Pro-forma for Dissertation Work
1. Name of the Student: Nidhin Velayudhan K
2. Name of the Guide: Mrs. Reena Shyam
3. Proposed research area: Finance
4. Proposed research topic: Analysis of the usage and effectiveness of e banking among
users with special reference to HDFC bank

4. Write a brief note on your topic:

Students Signature:
Approved or Disapproved: If it is disapproved, the reasons for revision








81

APPENDIX 2
SYNOPSIS
Title : Analysis of the usage and effectiveness of e banking among users
with special reference to HDFC bank
STATEMENT OF THE PROBLEM
E-banking means any user with a personal computer and a browser can get
connected to his bank website to perform any of the virtual banking functions. In E banking
system the bank has a centralized database that is web-enabled. All the services that the bank
has permitted on the internet are displayed in menu. Any service can be selected and further
interaction is dictated by the nature of service. Once the branch offices of bank are
interconnected through terrestrial or satellite links, there would be no physical identity for any
branch.
The study is made taking consideration of E- Banking of HDFC bank. It investigates
about all applications of E- Banking offered by HDFC bank. General consumers have been
significantly affected in a positive manner by E-banking. Many of the ordinary tasks have now
been fully automated resulting in greater ease and comfort. The study would help in
determining the usefulness of E- Banking as perceived by customer of HDFC bank. Customer
acceptance and Satisfaction experienced in e- banking is also an area of research.
OBJECTIVES OF STUDY
To study the awareness of E BANKING among the customers HDFC bank.
To know usage habits of customers of HDFC bank.
Find the customer satisfaction relating to E - Banking service.
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To study the problems faced by the customers in availing the E BANKING facilities and
to find out remedial measures.
METHODOLOGY OF THE STUDY
Analytical method of study is used here. In this research with a sample size of nearly 100
customers data will be available in the form of questionnaire collected .
SOURCES OF DATA COLLECTION
The study is based on both Primary data & Secondary data.
PRIMARY DATA SOURCE
Primary data are collected by using questionnaires.
SECONDARY DATA SOURCE
o Websites
o Books and journals

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

PLAN OF ANALYSIS
The analysis of the research would be carried out with the help of various Tables,
Charts, and Graphs etc. to interpret the data collected.
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The charts, tables etc. would give an insight about the different statistics and position of the
organization, which would be easy to understand and hence compare the various factors.

CHAPTER SCHEME
1 Introduction
2 Review of literature and research design
3 Profile of industry and organization
4 Results, Analysis and Discussion
5 Summary of findings, conclusions and recommendation