ZENITH

International Journal of Multidisciplinary Research

Vol.2 Issue 7, July 2012, ISSN 2231 5780

E-BANKING SYSTEM IN SBI

MR. ARUN KUMAR KAUSHIK*

*Research Scholar,
Uttarakhand Technical University,
Sr. Lecturer,
Institute of Management Studies,
Roorkee, Uttarakhand , India

ABSTRACT

PURPOSE – The main objectives of the study are:

To understand the concept of Internet banking and importance, to bank as well

as customers.

To get aware of various aspects of net banking

To build up SWOC analysis of Internet banking of SBI

To build up various solutions for drawbacks in net banking

DESIGN/METHODOLOGY/APPROACH – This research paper is based on secondary

data which is to be collected from the official website of State Bank Of India and Reserve
Bank of India.

SCOPE OF STUDY

The study is made taking consideration of whole State Bank of India. It investigates about
all applications of online banking in SBI. It would help society to understand the usefulness
of on- line banking. The study will also help to get the knowledge about process of internet
banking and usefulness to banking industry. As the study contains the 360 degree
information regarding SBI and its internet banking, Hence the study will lead to new ways
to tackle the problems and the SWOC of SBI in respect of internet banking. www.zenithresearch.org.in

NEED OF THE STUDY

This study is needed to find out the working of Internet Banking of SBI and its importance
to customer as well as to bank.

RESEARCH LIMITATIONS/IMPLICATIONS – The primary limitation of this study is

based on quality and originality of secondary data taken via the official website of State
Bank Of India and Reserve Bank of India.
76
ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780

FINDINGS – This study states that internet banking provides greater reach to customers.
Feedback can be obtained easily as internet is virtual in nature. Customer loyalty can be
gain. Personal attention can be given by bank to customer also quality service can be
served. After studying the SWOC analysis, we came to know various strengths of SBI such
as quality customer service, greater reach, customer loyalty, easy access to information, 24
hours access, easy online applications etc. SBI should put efforts to multiply the number of
strengths. In terms of weakness I come to know some of the major weaknesses they are lack
of awareness of internet banking among the customers, obsolesce of technology related to
security, complicated procedures of availing internet banking facilities, lack of knowledge
among the employees of SBI. SBI should concentrate on the weaknesses and reduce them to
zero.

KEYWORDS: Traditional & Internet Banking.

______________________________________________________________________________

INTRODUCTION

INTERNET

It is said that necessity is the mother of invention. And true, it is seeds of Internet were
sown in the ashes of the world war having bombed the cities of Hiroshima and Nagasaki,
US military was forced to provide the answer to the question – What if someone bombed
the USA? So for many years after the war, most of the US military research concentrated
on ways and means to survive the nuclear holocaust. And one of the most important
strategic problems was- “How would us authorities communicate with each other in the
aftermath of a nuclear attack?” computers were already there. But, communication
networks were connected to each in a private fashion- in sort of chains: somewhat like an
electricity line to your home. This means that if even one chain in the middle were blown
up, the whole network would collapse.

Then in the 1960‟s the problem was taken by America‟s foremost military think tank, the
Rand Corporation. After a lot of ideas were put up and knocked down, Paul baron- a rand
“thinker” hit upon an idea. “What if the network was not built like a chain but like a fish
net?” he said. If one strand on the fish net broke the net would still be functional. After
spending many agonizing hours over it, he came up with 11-volume report for the
pentagon. But, as fate would have it was rejected. By then, young engineers were impressed
www.zenithresearch.org.in

by the idea and worked on it. Well before the end of the decade, the first net was created
and called ARPANET, connecting four American research organizations- university of
Utah, university of California in Los Angeles and Santa Barbara, and Stanford research
institute.

Internet as a communication medium and as a repository of information has caught the

imagination of computer users. This has fuelled an unparalleled growth in the number of
Internet users.
77ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780

INTERNET BANKING SYSTEM

Internet Banking System is a system that has been developed in order to help clients with
the daily day-to-day transactions. Internet banking systems means that clients can now do
banking at the leisure of their homes. Also known as online banking, the system allows both
transactional and non-transactional features. Online banking or internet banking allows
customers to conduct financial transactions on a secure website operated by the retail or
virtual bank.

HISTORY OF INTERNET BANKING

▪ The term online banking was first started in 80‟s. The term online became popular
in the late '80s and referred to the use of a terminal, keyboard and TV (or monitor) to
access the banking system using a phone line. „Home banking‟ can also refer to the use of a
numeric keypad to send tones down a phone line with instructions to the bank. Online
services started in New York in 1981 when four of the city‟s major banks (Citibank, Chase
Manhattan, Chemical and Manufacturers Hanover) offered home banking services using
the videotext system. Because of the commercial failure of videotext these banking services
never became popular except in France where the use of videotext was subsidized by the
telecom provider and the UK, where the Prestel system was used.

▪ The UK‟s first home online banking services was set up by the Nottingham Building
Society (NBS) in 1983 .The system used was based on the UK's Prestel system and used a
computer, such as the BBC Micro, or keyboard (Tandata Td1400) connected to the
telephone system and television set. The system (known as 'Home link') allowed on-line
viewing of statements, bank transfers and bill payments. In order to make bank transfers
and bill payments, a written instruction giving details of the intended recipient had to be
sent to the NBS who set the details up on the Home link system. Typical recipients were gas,
electricity and telephone companies and accounts with other banks. Details of payments to
be made were input into the NBS system by the account holder via Prestel. A cheque was
then sent by NBS to the payee and an advice giving details of the payment was sent to the
account holder. BACS was later used to transfer the payment directly.
www.zenithresearch.org.in

▪ Stanford Federal Credit Union was the first financial institution to offer online
internet banking services to all of its members in Oct, 1994. Later on it was adopted by
worldwide banks

▪ State bank of India:

▪ State bank of India is the nation‟s largest and oldest bank. Tracing its roots back
some 200 years to the British East India Company (and initially established as the Bank of
78
ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780

Calcutta in 1806), the bank operates more than 15,000 branches within India, where it also
owns majority stakes in six associate banks. State Bank of India (SBI) has more than 80
offices in nearly 35 other countries, including multiple locations in the US, Canada, and
Nigeria. The bank has other units devoted to capital markets, fund management, factoring
and commercial services, credit cards, and brokerage services. The Reserve Bank of India
owns about 60% of State bank of India.

▪ Internet banking at State Bank of India:

WHERE SBI WAS?

In early 1990‟s more than 7000 branches were using traditional manual procedures.

These manual procedures were inherited from the Imperial Bank.

Traditional procedures were evolved over decades

Very few changes were brought in those procedures as per the need of time.

In that time, mainframe or mini computers were used for MIS,

RECONCILLATION & FUND SETTLEMENT PROCESS, or we can say that for
backhand operations purpose.

CHANGES BROUGHT IN INFORMATION TECHNOLOGY BY SBI

In the next decade internet facility was provided for individuals.

All SBI branches were connected and ATM‟S were launch

2001 - KMPG appointed consultant for preparing IT Plan for the Bank.

Later on Core banking proposed by the IT consultancy company.

2002 – All branches computerized but on decentralized systems, there the initiative
of core banking took place
www.zenithresearch.org.in
2008- more than 6500 branches (95% of business) on Core Banking Solution (CBS)

Internet Banking facility for Corporate customers were also launched in early 2008

More Interfaces developed with e-Commerce & other sites through alternate
channels like ATM & Online Banking.

All Foreign Offices were brought on Centralized Solution

Large network is playing the role of backbone for connectivity across the country
79
ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780

Multiple Service Providers are providing the links – BSNL, MTNL, Reliance, Tata
& reliance which are making the system errorless and provide high speed.

Multiple Technologies to support the networking infrastructure – Leased lines, Dial-

up, CDMA & VSAT.

CBS - Core Banking System

Components Datacenter
Branches
Desktops, Application Developers
Core-Banking

Branch
Servers Application
WAN, OS, Database

Internet
Alternative Internet-Banking
Channels
ATM

Branch User/Admins Network Administrators System Administrators

ELITEX-2008 8

◦
SERVICES PROVIDED BY SBI INTERNET BANKING

 ONLINE SBI (WWW.ONLINESBI.COM): State Bank of India is India‟s largest bank

with a branch network of over 11000 branches and 6 associate banks located even in the
remotest parts of India. State Bank of India (SBI) offers a wide range of banking
products and services to corporate and retail customers. „Online SBI‟ is the
Internet banking portal for State Bank of India. The portal provides anywhere,
anytime, online access to accounts for State Bank‟s Retail and Corporate customers.
www.zenithresearch.org.in

The application is developed using the latest cutting edge technology and tools. The
infrastructure supports unified, secure access to banking services for accounts in
over 11,000 branches across India.

 RETAIL BANKING: The Retail banking application is an integration of several

functional areas, and enables customers to:

 Issue Demand Drafts online

80ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780

 Transfer funds to own and third party accounts

 Credit beneficiary accounts using the VISA Money Transfer, RTGS/NEFT feature

 Generate account statements

 Setup Standing Instructions

 Configure profile settings

 Use e-Tax for online tax payment

 Use e-Pay for automatic bill payments

 Interface with merchants for railway and airline reservations

 Avail DEMAT and IPO services


CORPORATE BANKING: The Online SBI corporate banking application provides
features to administer and manage corporate accounts online. The corporate
module provides roles such as Regulator, Admin, Up loader, Transaction Maker,
Authorizer, and Auditor. These roles have access to the following functions:

 Manage users, define rights and transaction rules on corporate accounts

 Access accounts in several branches with a single sign-on mechanism

 Upload files to make bulk transactions to third parties, supplier, vendor and tax
collection authorities.

 Use online transactional features such as fund transfer to own accounts, third party
payments, and draft issues

 Make bill payments over the Internet.

 Authorize, modify, reschedule and cancel transactions, based on rights assigned to

the user www.zenithresearch.org.in
 Generate account statement

 Enquire on transaction details or current balance


VALUE ADDED SERVICES

 Tax payments to central and state governments through site to site integration.

 Supply Chain Finance( e-VFS- Electronic Vendor Finance Scheme)

81
ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780

 Direct Debit Facility

 E Collection Facilities for:

 Core Banking Transactions

 Internet Bank transactions for incoming RTGS/NEFT Transactions

 Internet banking transactions for SBI and associate banks

 Debit facility where suppliers can directly debit their customer‟s account through
internet banking

PRODUCTS & SERVICES

E-Ticketing

SBI E-Tax

Bill Payment

RTGS/NEFT

E-Payment

Fund Transfer

Third Party Transfer

Demand Draft

Cheque Book Request

Account Opening Request

Account Statement

Transaction Enquiry

Demat Account Statement

Donation

E-TICKETING: You can book your railway, air and bus tickets online through Online SBI.
To book your train ticket, just log on to irctc.co.in and create an ID there at if you do not
have one. Submit your travel plan and book the ticket(s)-either www.zenithresearch.org.in
82
ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780

i-ticket (where the delivery of tickets will be made at your address) or

E-tickets (wherein after successful payment transactions, an e-ticket is generated

which

can be printed any time. For an e-ticket, the details of photo identity card will required to
be filled in) and select State Bank of India in the payment options. You will be redirected to
Internet Banking site of SBI (www.onlinesbi.com). After submitting the respective ID and
password, you can select your account. After a successful debit, Railways will generate the
ticket. E-ticket can be printed by you whereas the i-ticket will be dispatched by IRCTC at
the given address. Service charges @ Rs.10/- per transaction shall be levied in addition to
the cost of the ticket. Cancellation of E-ticket can be done by logging on to IRCTC's site;
refund amount will be credited to your account directly within 2-3 days. For cancellation of
i-ticket, you shall be required to submit your ticket at a computerized counter of Railways
and on cancellation; the amount shall be credited back to your account.

You can also book your Air ticket through the e-ticketing feature. Logon to Indian
Airlines website to make a payment for an e-ticket through State Bank of India, you need
to select SBI as the payment option. The payment request will be redirected to Internet
Banking site. The request may be processed based on values sent from the airlines website.
Once a transaction is processed, an appropriate response will be sent to airlines site to
update the status of the transaction. You can print the E-ticket immediately.

To book bus tickets to destinations in Karnataka, log on to the KSRTC website. Provide
details about the start and end points of your journey, date of journey and number of
tickets. Verify availability of seats on the selected date and confirm the transaction. Select
„Online SBI‟ to make the payment. Provide your credentials and select the SBI account
that will be debited for the payment. You are provided a KSRTC reference number for
your e-Ticket.

SBI E-TAX

You can pay your taxes online through SBI E-Tax. This facility enables you to pay TDS,
Income tax, Indirect tax, Corporation tax, Wealth tax, Estate Duty and Fringe Benefits tax.
Click the e-Tax link in the home page. You are displayed a page with two links Direct Tax
and Indirect Tax. Click the Direct Tax link. You will be redirected to the NSDL site where www.zenithresearch.org.in
you can select an online challan based on the tax you wish to pay. Provide the PAN, name
and address, assessment year, nature of payment and bank name. On selecting the bank
name as SBI and submitting the form, you will be redirected to the Internet Banking site.
After submitting the respective ID and password, you can select your account for making
payment of taxes. After payment is successful you can print the E-Receipt for the payment.
The E-receipt can be printed at a later date also and the same can be retrieved from:
Enquiries > Find Transactions > Status Enquiries > Click on the respective transaction to
print the tax receipt.
83
ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780

The Indirect Tax link is used to make Central Excise and Service Tax payments to
Central Board of Excise and Customs. The online payment feature facilitates anytime,
anywhere payment and an instant E-Receipt is generated once the transaction is complete.
The Indirect Tax payment facility is available to Registered Central Excise/Service Tax
Assesses who possesses the 15 digit PAN based Assesses Code. You can make CBEC
payments using the Indirect Taxes link available in the Payments/Transfers tab. You need
to provide your assesses code as registered with CBEC and select the minor heads towards
which you intend to pay tax. Select the appropriate tax type and enter the tax amount.
Select an account for debiting the total tax amount. You can use any of your transaction
accounts to make the payment. If a payment is successful, CBEC provides a link to
generate an E-Receipt for the payment. Internet banking customers can pay tax through
site to site integration. For government agencies, which are not Internet-enabled, „Online
SBI‟ offers the Government Tax Payment facility. This facility is available as a post login
feature in the retail and corporate banking sites of the Online SBI portal.

BILL PAYMENT

A simple and convenient service for viewing and paying your bills online.

No more late payments

No more queues

No more hassles of depositing cheques

Using the bill payment you can view and pay various bills online, directly from your SBI
account. You can pay telephone, electricity, insurance, credit cards and other bills from the
comfort of your house or office, 24 hours a day, 365 days a year. Simply logon to
http://www.onlinesbi.com/ with your credentials and register the biller to which you want
to pay, with all the bill details. Once the bill is uploaded by the biller, you can make
payment online. You can see 'how do i' to learn the steps for using the facility.

You can also set up Auto Pay instructions with an upper limit to ensure that your bills are
paid automatically whenever they are due. The upper limit ensures that only bills within
the specified limit are paid automatically, thereby providing you complete control over www.zenithresearch.org.in
these payments. The e-PAY service is available in various cities across the country and you
can now make payments to several billers in your region.

RTGS/NEFT

You can transfer money from your State Bank account to accounts in other banks using the
RTGS/NEFT service. The RTGS system facilitates transfer of funds from accounts in one
bank to another on a "real time" and on "gross settlement" basis. This system is the fastest
possible interbank money transfer facility available through secure banking
84
ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780

channels in India. RTGS transaction requests will be sent to RBI immediately during
working hours post working hours requests are registered and sent to RBI on next working
day. You can also schedule a transaction for a future date. You can transfer an amount of
Rs.1 lac and above using RTGS system.

National Electronic Funds Transfer (NEFT) facilitates transfer of funds to the credit
account with the other participating bank. RBI acts as the service provider and transfers
the credit to the other bank's account.

NEFT transactions are settled in batches based on the following timings

1.6 settlements on weekdays - at 09:00, 11:00, 12:00, 13:00, 15:00 and 17:00 hrs.

2.3 settlements on Saturdays - at 09:00, 11:00 and 12:00 hrs.

Please note that all the above timings are based on Indian Standard Time (IST) only. In
order to transfer the funds to an account with other bank, kindly ensure that the bank
branch of the beneficiary is covered under the RGTS/NEFT payment system. It is
recommended that you choose the Bank/ Branch from the drop down option provided
under the link "Add Interbank beneficiary" and exercise care to provide the correct
account number and name of the beneficiary.

E-PAYMENT

You can pay your insurance premium, mobile phone bills and also you can purchase
mutual fund units by coming from the biller‟s website and selecting state bank of India in
the payment option. LIC PREMIUM: For paying premium of LIC policy logon to
www.licindia.com and register your policy details. When the premium is due select State
Bank of India in the
make payment option. SBI Mutual FUND: You can invest in the SBI Mutual Fund schemes
online. Logon to www.sbimf.com and select the scheme in which you want to make
investment in the payment option select State Bank of India.

CC Avenue: Enjoy shopping at the CC Avenue Shopping Mall and purchase from a wide
variety of products and services through CC Avenue Certified Vendors. Make payments for www.zenithresearch.org.in
your purchases using your Internet enabled SBI accounts.

FUND TRANSFER

The Funds Transfer facility enables you to transfer funds within your accounts in the same
branch or other branches. You can transfer aggregating Rs.1 lakh per day to own accounts
in the same branch and other branches. To make a funds transfer, you should be an active
Internet Banking user with transaction rights. Funds transfer to PPF account is restricted
to the same branch.
85ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780

Just log on to retail section of the Internet Banking site with your credentials and select
the Funds Transfer link under Payments/Transfers tab. You can see all your online debit
and credit accounts. Select the debit account from which you wish to transfer funds and the
credit account into which the amount is to be credited. Enter the amount and remarks. The
remarks will be displayed in your accounts statement for this transaction. You will be
displayed the last five funds transfer operations on your accounts. On confirming the
transaction, you will be displayed a confirmation page with the details of the transaction
and the option to submit or cancel the funds transfer request. A reference number will be
generated for your record.

www.zenithresearch.org.in
86
ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780

THIRD PARTY TRANSFER

You can transfer funds to your trusted third parties by adding them as third party
accounts. The beneficiary account should be any branch SBI. Transfer is instant. You can
do any number of Transactions in a day for amount aggregating Rs.1lakh.

To transfer funds to third party having account in SBI, you need to add and approve a
third party, you need to register your mobile number in personal details link under profile
section. You will receive a One Time SMS password on your mobile phone to approve a
third party. If you do not have a mobile number, third party approval will be handled by
your branch. Only after approval of third party, you will be able to transfer funds to the
third party. You can set limits for third party transactions made from your accounts or
even set limits for individual third parties.

DEMAND DRAFT

The Internet Banking application enables you to register demand drafts requests online.
You can get a demand draft from any of your Accounts (Savings Bank, Current Account,
Cash Credit or Overdraft). You can set limits for demand drafts issued from your accounts
or use the bank specified limit for demand drafts.

You can opt to collect the draft in person at your branch, quoting a reference to the
transaction. A printed advice can also be obtained from the site for your record.

Alternatively, you may request the branch to courier it to your registered address, and the
courier charges will be recovered from you.

CHEQUE BOOK REQUEST

You can request for a cheque book online. Cheque book can be requested for any of your
Savings, Current, Cash Credit, and Over Draft accounts. You can opt for cheque books
with 25, 50 or 100 cheque leaves. You can either collect it from branch or request your
branch to send it by post or courier. You can opt to get the cheque book delivered at your
registered address or you can provide an alternate address. Cheque books will be
dispatched within 3 working days from the date of request.

Just log on to retail section of the Internet Banking site with your credentials and select the www.zenithresearch.org.in
Cheque Book link under Requests tab. You can view all your transaction accounts. Select
the account for which you require a cheque book; enter the number of cheque leaves
required and the mode of delivery. Then, submit the same.

ACCOUNT OPENING REQUEST

„Online SBI‟ enables you to open a new account online. You can apply for a new account
only in branches where you already have accounts. You should have an INB-enabled
account with transaction right in the branch. Funds in an existing account are used to open
87
ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780

the new account. You can open Savings, Current, Term Deposit and Recurring Deposit
accounts of Residents, NRO and NRE types.

Just log on to retail section of the Internet Banking site with your credentials and select the
New Account link under Requests tab. You can see all types of accounts. Select the account
and account type you wish to open and submit the same. Then, you need to select the
branch and enter the initial amount to open the account. You can select any of your
accounts for debiting the initial amount. Then, submit the transaction. Your new account
opening request will be processed by the branch.

ACCOUNT STATEMENT

The Internet Banking application can generate an online, downloadable account statement
for any of your accounts for any date range and for any account mapped to your username.
The statement includes the transaction details, opening, closing and accumulated balance
in the account. You can generate the online account statement for any date range or for any
month and year. The account statement can be viewed online, printed or downloaded as an
Excel or PDF file. You also have the option to select the number of records displayed in
each page of the statement. The options are 25, 50, 75, 100 and ALL.

TRANSACTION ENQUIRY

„Online SBI‟ provides features to enquire status of online transactions. You can view and
verify transaction details and the current status of transactions. Your VISA transactions
can also be viewed separately. Just log on to retail section of the Internet Banking site with
your credentials and select the Status Enquiry link under the Enquiries tab. You will be
displayed all online transactions you have performed. To view details of individual
transactions, you need to click the Transaction Reference number link. You are displayed
the debit and credit account details, transaction amount, narration and transaction status.

DEMAT ACCOUNT STATEMENT

„Online SBI‟ enables you to view Demat account statement and maintain such accounts.
The bank acts as your depository participant. In the third party site, you can mark a lien
on your Demat accounts and use the funds to trade on stock using funds in your SBI www.zenithresearch.org.in
savings account. You can view Demat account details, and generate the following
statements: statement of holding, statement of transactions, statement of billing.

DONATION

You can make donation to religious and charitable institution by using Internet Banking of
SBI. Simply log on to http://www.onlinesbi.com/ with your credentials and go to Payment
and transfer and click on make donation link. After selecting the debit account select the
88ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780

religious/charitable institution that you want to offer donation. After successful payment
you can print an E-receipt for the donation made.

CUSTOMERS PERSPECTIVE

From the customers perspective, it was also decided to collect at least 100 questionnaires
from the different branches of SBI in approx equal representation therefore, a total of 120
questionnaires were floated in these branches using on convenience basis. Self-administered
approach was applied for data collection and surveys were completed anonymously and
returned to the researchers. At the end total 108 responses were received and finally 100
questionnaires were selected randomly and analyzed through cross tabulation techniques.

ANALYSIS OF DATA

The data is analyzed through the cross tabulation with the help of SPSS as given below:

Bank Technological Development * Better Customer Service

CROSSTAB

Count

Better Customer Service

Very
Poor Average Good Good Total

Bank Important 0 0 0 2 2
Technological Very Important 0 3 0 9 12
Development
Extremely 1 4 11 70 86

Important
Total 1 7 11 81 100
www.zenithresearch.org.in
89
ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780

Bar Chart

70 Better Customer

Service
Poor
60 Average
Good
Count

50 Very Good

40

30
20

10

Important Very Important Extremely Important

Bank Technological Development

With the help of above data interpretation and graphical presentation, it is easily
observed that bank customers definitely believe in a fact that technological development
in banking sector is extremely important. They also advocate that technological
development in banking sector improves customer services to a large extent.

Bank Technological Development * Bank Brand Name

CROSSTAB

Count

Bank Brand Name

Very Very
Poor Poor Average Good Good Total
www.zenithresearch.org.in

Bank Important 0 0 0 0 2 2
Technological Very
Development 0 0 2 4 6 12
Important
Extremely 1 1 3 29 52 86

Important
90ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780

Total 1 1 5 33 60 100

Bar Chart

60 Bank Brand Name

Very Poor
Poor
50 Average
Good
Count

40 Very Good

30

20

10

Important Very Important Extremely Important

Bank Technological Development

Above analysis shows that banking industry with high and modern technology is
treated as brand banking. The customers believe banks have to adopt new technology to
become a brand.

Bank Technological Development * Bank Competitive Ability

CROSSTAB

Count

Bank Competitive Ability

www.zenithresearch.org.in

Very
Poor Average Good Good Total
Bank Important 0 0 0 2 2
Technological Very Important 0 0 2 10 12
Development Extremely
1 6 22 57 86
Important
Total 1 6 24 69 100
91
 ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780

Bar Chart

60 Bank Competitive
Ability
Poor
50 Average
Good
40 Very Good

30

Count
20

10

Important Very Important Extremely Important

Bank Technological Development

This can be concluding that increase in adoption of modern technology by banks

improves their competitive ability too. It is because private banks with more advanced
technology have become better competitors of nationalized banks.

Bank Technological Development * Bank Loyalty

CROSSTAB

Count

Bank Loyalty
www.zenithresearch.org.in

Very
Average Good Good Total

Bank Technological Important 1 1 0 2

Development
Very Important 4 2 6 12
Extremely 21 34 31 86

Important
Total 26 37 37 100
92
ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780

Bar Chart

40 Bank Loyalty
Average
Good
Very Good

30
Count

20

10

0
Important Very Important Extremely Important
Bank Technological Development

Here, we found that technological adoption by banks also influence customer loyalty
but not to large extent. However, a large proportion of respondents believe that technology
improves services which directly influence loyalty, but some of them do not believe the
same. According to them, loyalty is influenced but to a small level.

SWOC ANALYSIS OF SBI‟S INTERNET BANKING

STRENGTHS

Greater reach to customers

Quicker time to market

Ability to introduce new products and services quickly and successfully

www.zenithresearch.org.in
Ability to understand its customers‟ needs

Customers are given access to information easily across any location

Greater customer loyalty

Easy online application for all accounts, including personal loans and mortgage

24 hours account access

93
ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780

Quality customer service with personal attention

WEAKNESSES

Lack of awareness among the existing customers regarding internet banking

Obsolesce of technology take place very soon specially in terms of security on

internet.

Procedure for applying for id and password for using services related to internet
banking takes time.

Lack of knowledge is found regarding internet banking in employees of SBI

Implementation of newer technology is little bit complicated

Employees needs training to obtain knowledge regarding I-banking

OPPORTUNITIES

Approximately 95% of customers are not using internet banking.

Core competency can be achieved in terms of banking if focus is made on awareness

of internet banking
st
Can become 1 virtual bank of India.

Concentration of various services should be made using internet banking

CHALLENGES

Maintaining Business Edge over competitors in the context of sameness in IT

infrastructure

Multiple vendor support is necessary for working of highly complex technology

Maintaining secured IT infrastructure for business operations www.zenithresearch.org.in

Alternative must be there in case of failure of system

RECOMMENDATIONS AND SUGGESTIONS

TRAINING AND AWARENESS AMONG EMPLOYEES

It is recommended that State Bank of India should conduct various training

programmes for the employees, so that they will get aware with the terms of internet
banking. After such programmes they can create awareness amongst the consumers.
94
ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780

EXCHANGE OF INFORMATION ON THREATS AND VULNERABILITIES AT

APPROPRIATE FORUMS

There should be an open end discussion on the threats and vulnerabilities coming across
the functioning of internet banking work by the employees in the various official
forums and meets.

BUILD AN OPTIMAL OPERATING MODEL BY UNDERSTANDING WHICH

ACTIVITIES TO RETAIN COLLABORATE AND OUTSOURCE

There should be clear sight of operations which needs to outsource to other companies,
this will lead to ease in work for employees. Outsourcing operations like, cyber security
department, building IT structure on internet.

BANK SHOULD CREATE AND SUSTAIN CUSTOMER, INVESTOR AND

REGULATOR CONFIDENCE BY ADOPTING INTERNATIONAL ACCOUNTING
STANDARDS

Adopting international standards adds some more star to the glory of any company,
SBI should impose such standards when it comes to internet banking or virtual
banking, this will enhance the goodwill of SBI among regulator, customers and
invertors.

BANK SHOULD ANTICIPATE AND GET PREPARED FOR REGULATORY

CHANGES

Laws regarding IT or cyber laws get change as per the need. SBI should anticipate such
kind of changes and get loaded with various plans and actions.

FOCUS ON IDENTIFYING CORE COMPETENCE

SBI possess some unique characteristics or positive points in it and with the help of
them it can become a leader in market. Bank should identify such points and
concentrate to flourish them more. This can be done with the help of internet banking,
as internet banking of SBI is getting largely accepted by customers.
www.zenithresearch.org.in
INCREASING USAGE OF MOBILE PHONES IS GOING TO REVOLUTIONIZE
THE BANKING CULTURE IN NEAR FUTURE

Mobile banking is also getting popular in the segment of internet banking thus this can
add some more steps to progress for SBI. Bank is into the mobile banking but it is
providing limited features.
95ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780

MORE STRESS SHOULD BE GIVEN ON SECURITY CONCERN ON INTERNET

There are some people who are into unethical practices of hacking of accounts of
customers. This is nothing but the breach in the security of the SBI on internet. There
should be some measures in order to prevent such practices. IT structure should be
unbreakable.

CONCLUSION

Studying the project we came to know that Internet banking is clearly the way forward for
the State Bank of India. It provides comfort to customers at the same time it provides cost
cutting to SBI by eliminating physical documentation. Internet banking saves time of bank
as well as those of customers.

This study states that internet banking provides greater reach to customers. Feedback
can be obtained easily as internet is virtual in nature. Customer loyalty can be gain.
Personal attention can be given by bank to customer also quality service can be served.
Bank should know that No system is perfect, however a system of such a type will need to
be very secure. This is a system which holds account details and customers wealth. If such a
system was not trusted and not reliable, then SBI would face serious laws and would lose
business. It can be easily conclude that technological development in banking industry
positively improves their services, competitiveness, branding and also loyalty.

After studying the SWOC analysis, we came to know various strengths of SBI such
as quality customer service, greater reach, customer loyalty, easy access to information, 24
hours access, easy online applications etc. SBI should put efforts to multiply the number of
strengths. In terms of weakness I come to know some of the major weaknesses they are lack
of awareness of internet banking among the customers, obsolesce of technology related to
security, complicated procedures of availing internet banking facilities, lack of knowledge
among the employees of SBI. SBI should concentrate on the weaknesses and reduce them to
zero.

In the third segment of SWOC analysis of internet banking we dealt with opportunities like
95 % market of internet market is untapped, SBI‟s path to become first virtual bank. By
encashing such opportunities bank can become the leader in banking sector of India. In the www.zenithresearch.org.in
last segment I come to know about various challenges which are in front of SBI, like
sameness in IT infrastructure within various banks, need of various vendor supports for
complex technology, maintaining secured IT infrastructure, alternative mechanism in case
of failure of present security system.

The company can take the advantage of the reputation it has created in the market for
itself and become more competitive

The recommendations and suggestions given, if adopted will improve the position of the
company substantially and optimal profitability coupled with better service and
satisfactions for investors may be achieved.
96
ZENITH
International Journal of Multidisciplinary Research
Vol.2 Issue 7, July 2012, ISSN 2231 5780

BIBLIOGRAPHY

BOOKS

SBI Training guide for internet banking

WEBSITES

www.statebankofindia.com

www.onlinesbi.com

www.weikipedia.com

www.google.com

www.zenithresearch.org.in
97