CUSTOMER SATISFACTION ON E-BANKING SERVICE BY SETHU

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CUSTOMER SATISFACTION ON E-BANKING SERVICE RENDED BY SBI
IN TIRUPUR BRANCH
CHAPTER I
1.1 INTRODUCTION
Customer satisfaction is measured at the individual level, but it is almost always reported
at an aggregate level. It can be, and often is, measured along various dimensions. A hotel, for
example, might ask customers to rate their experience with its front desk and checkin service, with
the room, with the amenities in the room, with the restaurants, and so on. Customer satisfaction, a
term frequently used in marketing, is a measure of how products and services supplied by a
company meet or surpass customer expectation. Customer satisfaction is defined as "the number
of customers, or percentage of total customers, whose reported experience with a firm, its products,
or its services exceeds specified satisfaction goals." In a survey of nearly 200 senior marketing
managers, 71 percent responded that they found a customer satisfaction metric very useful in
managing and monitoring their businesses. "Customer satisfaction provides a leading indicator of
consumer purchase intentions and loyalty."Customer satisfaction data are among the most
frequently collected indicators of market perceptions. Customer service is the provision of service
to customers before, during and after a purchase. According to Turban "Customer service is a
series of activities designed to enhance the level of customer satisfaction that is, the feeling that a
product or service has met the customer expectation." Customer satisfaction is an ambiguous and
abstract concept and the actual manifestation of the state of satisfaction will vary from person to
person and product/service. The state of satisfaction depends on a number of both psychological
and physical variables which correlate with satisfaction behaviors such as return and recommend
rate. The level of satisfaction can also vary depending on other options the customer may have and
other products against which the customer can compare the organization's services.

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Online banking is an electronic payment system that enables customers of a financial
institution to conduct financial transactions on a website operated by the institution, such as a retail
bank, virtual bank, credit union or building society. Online banking is also referred as Internet
banking, e-banking, virtual banking and by other terms.
To access a financial institution's online banking facility, a customer with Internet access
would need to register with the institution for the service, and set up some password for customer
verification. The password for online banking is normally not the same as for telephone banking.
Financial institutions now routinely allocate customers numbers, whether or not customers have
indicated an intention to access their online banking facility.
Customers' numbers are normally not the same as account numbers, because a number of
customer accounts can be linked to the one customer number. The customer can link to the
customer number any account which the customer controls, which may be cheque, savings, loan,
credit card and other accounts. Customer numbers will also not be the same as any debit or credit
card issued by the financial institution to the customer.
To access online banking, a customer would go to the financial institution's secured
website, and enter the online banking facility using the customer number and password previously
setup. Some financial institutions have set up additional security steps for access to online banking,
but there is no consistency to the approach adopted.
The proliferation and penetration of internet has opened new horizons and scenarios for the
retail banking industry.The retail banks are now providing their products and services through the
electronic medium; e-banking.E-devolepments and emerging and advancing rapidly in all areas of
financial intermediation and financial markets: e-finance,e-money,ebanking,e-brokering,e-
insurance,e-exchanges and even e-supervision.The new information technology is turning in to the
most important factor in the future devolepment of banking,influencing bank’s marketing and
business strategies.In recent years,the adoption of e-banking began to occur quite extensively as a
channel of distribution for financial services due to rapid advances in IT and intensive competitive
banking markets.The driving forces behind the rapid transformation of banks are influential
changes in the economic environment: innovations in information technology,innovations in
financial products, and consolidation of financial markets,deregulation of financial intermediation
etc.These and other make it complicated to design a bank’s strategy,which process is threatened

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by unforeseen devolepments and changes in the economic environment and therefore,strategies
must be flexible to adjust to these changes.The financial services market is continuing to change
rapidly,which brings in to question whether traditional banks,as they are now structured,will
acyually continue to exist by the end of the decade or even survive through the next five
years.Competiton has been increasing for some years within traditional financial centers,amongst
thebanks themselves.A significant challenge come from international banks offering technology
based financial services across geographical boundaries and thereby competing with traditional
banks for their best business within their own back yard.Internet banking is a kind of system that
enables financial institutions,customers,individuals or businesses,to access accounts,transact
business,or obtain information on financial products and services through the internet.Online
banking (Internet banking) allows customers to conduct financialtransactions on a secure website
operated by their retail or virtual bank,credit union.Internet banking allows customers to perform
a wide range of banking transactions electronically via the bank’s website.With the devolepment
of asynchronous technologies and secured electronic technologies,almost all banks have come
forward to use Internet Banking both as transactional as well as an informational medium.The
registered internebanking users can now perform common banking function such as
 Payment of bills
 Transferring funds to any part of the world
 Checking the balance
 Downloading and printing statements
 Opening various accounts such as Reccuring deposite,Fixed deposite etc.
 Payment of credit cards
 Stop payment of cheques
 Reporting lost cards
 Requesting cheque books
 Applying loans
 Downloading applications
Many have opened their own shopping sites which enables customers to buy from
the website at the ease of sitting back at home.

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The most general type of electronic banking in our time is banking via the internet,in other
words Internet Banking.This type of banking allows consumers to check balances in their
accounts,transfer funds and order electronic bill payments.Internet banking systems allowing
customers to apply for loans,trade stocks or mutual funds,and even view actual images of their
cheques or deposit slips.The services available for Internet banking vary from bank to
bank.Nowadays the internet is the main channel for electronic banking.Internet banking offers
many benefits to banks and their customers.The main benefits to banks are cost savings,reaching
new segmentsof the population,efficiency,enhancement of the bank’s reputation and better
customer service and satisfaction.To customers Internet banking offers also new value.With the
help of internet,banking is no longer bound to time or geography.Consumers all over the world
have relatively easy access to their accounts 24 hours per day,seven days a week.It makes available
to customers a full range of services including some services not offered at Branches.
Dimensions of online banking
1)Customer to bank
Online banking or e-banking is basically internet based.Banking products and services
such as deposits,remittances,credit cards etc. as well as all important banking informations can be
made available with easy access to customers on Internet.Customers can make use of these services
with no restricted office hours,no queues,no tellers and no waiting.Several network innovations
for online banking can be visualized such as smart card,electronic data interchange etc.
2)Bank to bank
This form of electronic banking is for transacting inter-bank transactions such as money-
at-call etc.This type of e-banking is restricted to banks only.Hence it is well secured and
unauthorized acces is less.
3)Electronic central banking
Under this e-central banking all banks within the purview of a Central bank are
interconnected on extranet to facilitate clearing of cheques,management of cash reserves,open
market operations,discounting of bills etc.In fact,the Central bank has to be connected with
government treasury on extranet to carry out its functions as an agent of the government.

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4)Intranet procurement
For the transactions that are internal to a bank,between the bank and its branches and
subsidiaries,intranet procurements of banking is required.On the other hand ,extranet permits a
bank to have full control over the users of intranet and the information to be transmitted.
In this study,we deals with the Customer to Bank e-banking and which is the only online
banking facility which is available to the customers of a bank.

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1.2 SCOPE OF THE STUDY:
The study entitled " CUSTOMER SATISFACTION ON E-BANKING SERVICE
RENDED BY SBI IN TIRUPUR BRANCE" aims to find out the awareness level and the
effectiveness of Internet banking service provided by Dent bank to the customers. The analysis
will help to know the awareness level of customers regarding the internet banking services. Along
with the satisfaction level of tie customers in the internet banking services and the customer's
perception regarding the internet banking service at SBI.
1.3 IMPORTANCE OF THE STUDY
Modern banking is high-tech,electronic and tech-savy.Banking institutions are adopting
most modern technology to deliver high value added and customized services at the doorstep of
the customers round the clock.Using an ATM,customers can access their bank accounts inorder to
make cash withdrawals,get debit card cash advances and check their account balances as well as
purchase prepaid mobile phone credit.If the currency being with drawn from the ATM is different
from that which the bank account is denominated in (eg : Withdrawing Japanese yen from a bank
account containing US dollars),the money will be converted at an official wholesale exchange
rate.Thus,ATMs often provide one of the best possible official exchange rates for foreign travelers
and are also widely used for this.Though there is deliberate attempt from banks to propogate and
penetrate internet banking,it is seen that only a fraction of customers are using Internet banking
services.There are diverse hidden risks inherent in Internet Banking which de motivates a
prospective customer to use it.Existing literature reveals that studies conducted on the topic are
scanty.

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1.4 NEED FOR THE STUDY
 Customer Satisfaction is very essential for every Service to survive in the market.
 Customer Satisfaction could help the business by placing future demand to the company
 Customer Satisfaction gives passing the words of mouth to other potential customers.
 Customer Satisfaction is very Important for the company to take care of the customers and
make them to satisfy.
1.5 OBJECTIVES OF THE STUDY
1. To assess the impact of service quality dimensions on customers satisfaction in E-banking.
2. To assess the impact of perceived value of e-banking service on customers satisfaction.
3. To identify the most widely used application of internet banking.
4. To find out the reasons for preferring internet banking.
1.6 STATEMENT OF THE PROBLEM
In traditional banking,the customer has to visit the branch of the bank in person to perform
the basic banking operations,viz.,account enquiry,fund transfer,cash withdrawals etc… But e-
banking enables the customers to perform the basic banking transactions by sitting at their office
or homes through viewing their account details and perform the transactions through PC,lap top
or mobile phone.Unfortunately most of the customers are unaware about the e-banking
facility.It is due to the lack of e-literacy.Only a few percentage of the total customers of the bank
uses online banking.The online banking users are also not confident about the security due to the
hackers who hacks the bank’s website.Whatever it is,banks doesn’t offer 100 percentage security
in online transactions.

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1.7 RESEARCH METHODOLOGY
The study is based on primary data collected through a structured questionnaire widely
circulated among the customers of State Bank Of India,Ponganadu Branch.Secondary data was
also collected from websites,annual reports,text books,magazines,journals etc..
SCHEME OF PRESENTATION
1. First chapter deals with introduction and execution of the study
2. Second chapter deals with industry & company profile.
3. Third chapter is review of literature
4. Fourth chapter is analysis and interpretation.
5. Fifth and the last chapter deals with findings,suggestions and conclusion.
1.8 LIMITATIONS OF THE STUDY
1. Period given for the project work is limited.
2. The study is restricted only to selected area,so it cannot be generalized.
3. Since the research is based on the sample respondents,the accuracy of the research may be
affected.
4. Another major limitation of this research was the inadequacy of knowledge that most bank
customers had about e-banking especially regarding the internet banking and tele-banking
delivery channels.
5. All research make some assumptions at some stages in order to proceed further. However,
not all assumptions made may beright and hence this is another limitation as the incorrect
assumptions may lead to testing of hypotheses on the wrong footing and hence incorrect
recommendations and conclusions.

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1.9 CHAPTER SCHEME
Chapter I
1.1 Introduction
1.2 Scope Of The Study:
1.3 Importance Of The Study
1.4 Need For The Study
1.5 Objectives Of The Study
1.6 Statement Of The Problem
1.7 Research Methodology
1.8 Limitations Of The Study
Chapter II
2.1 Review Of The Literature
Chapter III
3.1 Industry Profile
3.2 Company Profile
Chapter IV
4.1 Data Analysis
Chapter V
5.1 Finding
5.2 Suggestion
5.3 Conclusion

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CHAPTER II
2.1 REVIEW OF LITERATURE
Author Name: Azouzi, D. Topic: ―The Adoption of Electronic Banking in Tunisia‖,
Journal of Internet Banking and Commerce‖ Date: June, 09 2009.
This paper aims to check if the current and prompt technological revolution altering
the whole world has crucial impacts on the Tunisia n banking sector. Particularly, this study
seeks some clues on which we can rely in order to understand the customers' behavior
regarding the adoption of electronic banking. To achieve this purpose, an empirical research is
carried out in Tunisia and it reveals that panoply of factors is affecting the customers-attitude
toward e-banking. For instance; age, gender and educational qualifications seem to be important
and they split up the group into electronic banking adopters and traditional banking defenders
and so, they have significant influence on the customers' adoption of e-banking. Furthermore,
this study shows that despite the presidential incentives and in spite of being fully aware of
the e-banking's benefits, numerous respondents are still using the conventional banking. It is
worthy to mention that the fear of loss because of transactions errors or hackers plays a significant
role in alienating Tunisian customers from online banking.

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Name: Uppal, R.K. & Chawla, R. Topic: ―E-Delivery Channel-Based Banking
Services: An Empirical Study. Institute of Chartered Financial Analysts of India
(Hyderabad)‖. Date: Feb,06,2009.
This study highlights customer perceptions regarding e-banking services. A survey
of 1,200 respondents was conducted in October 2008 in Ludhiana district, Punjab. The
respondents were equally divided among three bank groups namely, public sector, private sector
and foreign banks. The present study investigates the perceptions of the bank customers
regarding necessity of e-banking services, quality of e-banking services, bank frauds, future of e-
banking, preference of bank customers regarding banks, comparative study of banking services in
various bank groups, preferences regarding use of e-channels and problems faced by e-bank
customers. The major finding of this study is that customers of all bank groups are
interested in e-banking services, but at the same time are facing problems like, inadequate
knowledge, poor network, lack of infrastructure, unsuitable location, misuse of ATM cards
and difficulty to open an account. Keeping in mind these problems faced by bank customers,
this paper frames some strategies like customer education, seminars/meetings, proper
network and infrastructure facilities, online shopping facilities, proper working and
installation of ATM machines, etc., to enhance e-banking services. Majority of professionals
and business class customers a s well as highly educated and less educated customers also
feel that e-banking ha s improved the quality of customer services in banks.

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Author Name: Bauer, Malik & Falk Topic: ―Measuring the quality of e banking
portals‖, Date: July 27, 2007.
This article reviews the measuring the quality of E-Banking portals. In the internet
economy, the business model of web portals has spread rapidly over the last few years.
Despite this, there have been very few scholarly investigations into the service s and
characteristics that transform a web site into a portal as well as into the dimensions that
determine the customer‘s evaluation of the portal‘s service quality. Based on an empirical
study in the field of e-banking the authors validate a measurement model for the construct
of web portal quality based on the following dimensions: security and trust, basic services
quality, cross- buying services quality, added value, transaction support and responsiveness.
Findings – The identified dimensions ca n reasonably be classified into three service
categories: core services, additional services, and problem-solving services. Originality/value
– The knowledge of these dimensions as major determinants of consumer‘s quality perception
in the internet provides banks a promising starting point for establishing an effective quality
management for their e-businesses
Author Name: Nitsure, R.R. Topic: ―E-Banking: Challenges and Opportunities‖.
Date: December 25, 2004.
This article indicates the E-banking Challenges and opportunities lies in the banking
industry. E-banking has the potential to transform the banking business a s it significantly lowers
transaction and delivery costs. This pa per discusses some of the problems developing countries,
which have a low penetration of information and telecommunication technology, face in realizing
the advantages of e- banking initiatives. Major concerns such as the 'digital divide' between
the rich and poor, the different operational environments for public and private sec tor
banks, problems of security and authentication, management and regulation, and inadequate
financing of small and medium scale enterprises (SMEs) are highlighted.

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

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

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

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

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

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

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On October 7, 2013, Arundhati Bhattacharya became the first woman to be appointed
Chairperson of the bank.As of December 2014, SBI had assets of US$388 billion and
17,000branches, including 190 foreign offices, making it the largest banking and financial services
company in India by assets. State Bank of India is one of the Big Four banks of India, along with
Bank of Baroda, Punjab National Bank and Bank of India.
SBI has 14,816 branches in India, as on 31 March 2014, of which 9,851 (66%) were in
Rural and Semi-urban areas. In the financial year 2012-13, its revenue was INR 200,560 Crores
(US$36.9 billion), out of which domestic operations contributed to 95.35% of revenue. Similarly,
domestic operations contributed to 88.37% of total profits for the same financial year.
Under the Pradhan Mantri Jan Dhan Yojana of financial inclusion launched by Government
in August 2014, SBI held 11,300 camps and opened over 30 lakhs accounts by September, which
included 21.16 lakh accounts in rural areas and 8.8 lakh accounts in urban areas.
SBI has five associate banks; all use the State Bank of India logo, which is a blue circle,
and all use the "State Bank of" name, followed by the regional headquarters' name:
 State Bank of Bikaner & Jaipur
 State Bank of Hyderabad
 State Bank of Mysore
 State Bank of Patiala
 State Bank of Travancore Non-banking subsidiaries
Non-banking subsidiaries:
Apart from its five associate banks, SBI also has the following non-banking subsidiaries:
 SBI Capital Markets Ltd
 SBI Funds Management Pvt Ltd
 SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)
 SBI DFHI Ltd
 SBI Life Insurance Company Limited
 SBI General Insurance

20
As of 31 March 2014: SBI has 43,515 ATMs and SBI group (including associate
banks) has 51,491 ATMs. SBI has become the first bank to install an ATM at Drass in the
Jammu & Kashmir Kargil region. This was the Bank's 27,032nd ATM on 27 July 2012.
Logo and slogan
 The logo of the State Bank of India is a blue circle with a small cut in the bottom that
depicts perfection and the small man the common man - being the center of the bank's
business. The logo came from National Institute of Design(NID), Ahmedabad and it was
inspired by Kankaria Lake, Ahmedabad
 Slogans: "PURE BANKING, NOTHING ELSE", "WITH YOU - ALL THE WAY", "A
BANK OF THE COMMON MAN", "THE BANKER TO EVERY INDIAN", "THE
NATION BANKS ON US"

21
Recent awards and recognitions
 SBI won the Best Bank award in the 'ASiAMONEY FX POLL OF POLLS 2014’ for best
overall performance as domestic provider of Forex services over the last 10 years.
 SBI was ranked as the top bank in India based on tier 1 capital by The Banker magazine
in a 2014 ranking.
 SBI was ranked 298th in the Fortune Global 500 rankings of the world's biggest
corporations for the year 2012.
 SBI won "Best Public Sector Bank" award in the D&B India's study on 'India's Top Banks
2013'.
 State Bank of India won three IDRBT Banking Technology Excellence Awards 2013 for
“Electronic Payment Systems”, “Best use of technology for Financial Inclusion”, and
“Customer Management & Business Intelligence” in the large bank category.
 SBI won National Award for its performance in the implementation of Prime Minister’s
Employment Generation Programme (PMEGP) scheme for the year 2012.
 Best Online Banking Award, Best Customer Initiative Award & Best Risk Management
Award (Runner Up) by IBA Banking Technology Awards2010.
Recent awards and recognitions
 SBI won the Best Bank award in the 'ASiAMONEY FX POLL OF POLLS 2014’ for best
overall performance as domestic provider of Forex services over the last 10 years.
 SBI was ranked as the top bank in India based on tier 1 capital by The Banker magazine
in a 2014 ranking.
 SBI was ranked 298th in the Fortune Global 500 rankings of the world's biggest
corporations for the year 2012.
 SBI won "Best Public Sector Bank" award in the D&B India's study on 'India's Top Banks
2013'.
 State Bank of India won three IDRBT Banking Technology Excellence Awards 2013 for
“Electronic Payment Systems”, “Best use of technology for Financial Inclusion”, and
“Customer Management & Business Intelligence” in the large bank category.
 SBI won National Award for its performance in the implementation of Prime Minister’s
Employment Generation Programme (PMEGP) scheme for the year 2012.

22
1.Account
State Bank Of India offers a wide range of accounts such as current,savings,life plus
senior,Recurring deposite,zero balance,salary account etc..
 Zero balance account: This is a type of account which can be opened with no money.It
is offered only to the students.One cannot invest more than Rs.50,000 in this account.
 Savings account:Convenience is the name of the game with SBI’s savings
account.Whether it is an ATM/Debit card,easy withdrawal,easy loan options or internet
banking,SBI savings account always keep you in touch of money.
 Current Account:Current account is opened by bsiness men who have a higher number
of regular transactions with the bank.It includes deposits,withdrawals and contra
transactions.
2.Loans
SBI offers a wide range of loans to meet the varying needs at every stage of life.It offers a
range of Tenures and other features to suit all requirements.
 Home loans: It offers unbeatable offers to the customers.SBI provide guidance to
customers throughout the process with doorstep process service,simplified
documentation etc...
 Personal loans: SBI personal loans are easy to get and hassle free.With minimum
documentation you can now secure a loan for an amount up to Rs.15 lakhs.
 Vehicle loans: Network of more than 2500 channel partners in over 1000
locations.Tieups with all leading automobile manufactures to ensure the best
deals.Flexible schemes and quick processing are the main advantages.

23
3.Cards
SBI offers a variety of cards to suit different transactional needs.It includes credit cards,debit
cards and prepaid cards.
 Credit card: SBI credit card give you the facility of cash,convenience and a range of
benefits anywhere in the world.
 Debit card: SBI debit card is a revolutionary form of cash that allows customers to access
their bank account around the clock,around the world.
 Travel card: SBI travel card,the hassle free way to travel the world.Travelling with US
dollar,Euro,Pound or Sterling is very difficult and it is secure and convenient to cary a
travel card,which can be converted to any currency.
4.Trade services
SBI offers online remittances as well as online processing of letters of credit and bank
guarantees.
5.Cash management
SBI offers a complete range of highly customized solutions for managing both the
collections and payment requirements of clients by leveraging technology.
6.Corporate banking
SBI offers comprehensive and financial solutions for its corporate clients,including rupee
and foreign currency debts,working capital credit,structured financing syndication and transaction
banking products and services.
7.NRI banking
Services to take care of all NRI banking needs including money transfers and private
banking.
8.Demat accounts
SBI demat services offer unique features like e-constructions,consolidation,digitally
signed statements,mobile requests and corporate benefit tracking.

24
9.Rural Banking
Bank offers technology based solutions,financial innovations and multiple delivery
channels to meet the financial needs of rural areas.
10.ATM
With more than 20000 ATMs across the country,SBI has one of the largest ATM networks
in India.
11.Internet banking
Internet banking is available to all SBI savings and other deposite account holders,credit
card,demat and loan customers.Internet banking service offer customers a world of convenience
with services such as balance enquiry,transaction history,account statement,bill payments,fund
transfers and account related service requests.

25
CHAPTER IV
DATA ANALYSIS
The study deals with the customer satisfaction of online banking with reference to the
customers of SBI, Ponganadu. A sample of fifty is taken for the study. The result is discussed in
the following points.
1.Classification of respondents based on age
The classification based on age wise is given in the below table.
Age wise classification (Table 4.1)
AGE NO OF RESPONDENTS PERCENTAGE %
18 – 25 44 44%
25 – 35 26 26%
35 – 45 16 16%
45 – 55 10 10%
Above 55 4 4%
Total 100 100%
SOURCES PRIMARY DATA
INTERPRETATION
The above table NO 4.1 reveals the Age wise classification proved that respondents
between the age of 18-25 are using internet banking more(44%).26% of the respondents comes in
the category of 25-35.16% of the respondents comes in 35-45 and 10% comes in 45-55.Only 4%
comes in the category of above 55.It shows that youth people are using IB more.Oldage people
may not have sufficient knowledge with regard to internet banking,that is why they are not using
commonly.

26
Figure 4.1
0
20
40
60
80
100
120
18-25 25-35 35-45 45-55 Above 55 Total
Chart Title
No.of respondents Percentage

27
2. Respondents based on Gender
As per the analysis sex wise classification showed the following position.
Sex wise classification (Table 4.2)
GENDER NO OF RESPONDENTS PERCENTAGE %
Male 62 62%
Female 30 30%
Transgender 8 8%
Total 100 100%
INTERPRETATION
The above table reveals that the online banking is most widely used by male
customers(72%).Only 28% of respondents are females using online banking services. The rest is
occupied by the male customers. As we know, for using online/internet banking requires laptop,
PC or a smart phone and a working internet connection. Most of the people doesn’t have all these
at home. So people are forced to go to an internet kiosk for doing the online banking activities.
Females doesn’t prefer such kiosks due to various reasons. It may be the reason behind the decrease
in number of female customers for internet banking.
The graphical representation of sex wise classification of respondents are given on below
graph(4.2):

28
Figure 4.2
0
0.2
0.4
0.6
0.8
1
1.2
Chart Title

29
3.Classification on the basis of marital status
Classification of respondents based on marital status is given on the table below.
Marital status (Table 4.3)
MARITAL STATUS NO OF RESPONDENTS PERCENTAGE %
Married 72 72%
Single 28 28%
Total 100 100%
INTERPRETATION
The above table NO 4.3 reveals From this classification we came to know that the
unmarried persons are using online banking activities more than the married people. Married
people occupies only 72% and the unmarried occupies 28%.Marrried people suffers a lot of
tensions and strain in their family life. So they may do not have sufficient time for performing
online activities. It may be the reason for this.
Graphical representation of marital status of respondents are given in the below

30
Figure 4.3
0
10
20
30
40
50
60
70
80
90
100
married single Total
No.of respondents Percentage

31
4. Occupational wise classification of respondents
Occupation is one of the standard of judgment for the users of internet banking
.Occupational wise classification of respondents are given in the below table.
Occupational wise classification (Table 4.4)
OCCUPATION NO OF RESPONDENTS PERCENTAGE %
Govt, Employee 24 24%
Self Employee 26 26%
Student 27 27%
Others 23 23%
Total 100 100%
INTERPRETATION
The above table NO 4.4 reveals Govt. employees being 24%. due to the regular usage of
internet, students(27%) and self employee(26%) are more familiar with online activities. So they
comes in the second and third position and the others occupies 23% each.
The graphical representation of respondents based on occupation is shown below

32
Figure 4.4
0
20
40
60
80
100
Govt,
Employee
Self Employee Student Others Total
occupation
NO OF RESPONDENTS PERCENTAGE %

33
5.Classification of customers based on qualification
Below table(4.5) shows the classification of respondents based on their qualification.
Classification based on qualification (Table 4.5)
QULIFICATION NO OF RESPONDENTS PERCENTAGE %
Below SSLC 6 6 %
SSLC 8 8 %
HSC 20 20 %
Graduate 32 32 %
Post Graduate 30 30 %
Others 4 4 %
Total 100 100 %
INTERPRETATION
The above table NO 4.5 reveals From the current study we have realized the fact that highly
qualified persons uses more than that of others.34% of respondents are graduates and 30% are post
graduates.Respondents having higher secondary qualification comes just below post
graduates(20%).The other respondents are SSLC(8%),Below SSLC(6%),Others(4%).Highly
qualified persons get more knowledge about online activities than others from their
curriculum.That is why qualified respondents uses internet banking more than that of respondents
having basic qualification.
Here is the graphical representation of classification based on qualification.

34
Figure 4.5
6 8
20
32 30
4
100
6% 8%
20%
32% 30%
4%
0
20
40
60
80
100
120
below SSLC SSLC Plus Two Graduate Post
graduate
others Total
Chart Title
No.of respondents percentage

35
6.Respondents based on their monthly income
The below table shows the classification of respondents based on their monthly income.
Classification based on monthly income (Table 4.6)
INCOME NO OF RESPONDENTS PERCENTAGE %
Below RS 10000 18 18 %
RS 10000 – RS 20000 34 34 %
RS 20000 – RS 30000 36 36 %
Above RS 30000 12 12 %
Total 100 100 %
INTERPRETATIION
The above table NO 4.6 reveals According to the study, middle class people most widely
uses internet banking. People having an income in between RS 20000 and RS 30000 comes in the
first position(36%) and people having income in between RS 10000 and RS 20000 comes in the
second position(34%).People having income less than RS 10000 comes in the second last
position(18%).Respondents having a monthly income of more than RS 30000 uses online banking
least(12%).People in this category deals with large amount of money in single transaction as
compared to the others. There may be a fear in their minds about the security of online banking. It
may be reason for it.
Graphical representation of this classification is given below:

36
Figure 4.6
18%
34%
36%
12%
100%
no of respondents
below 10000 10000-20000 20000-30000 above 30000 Total

37
7.Mostly used internet banking service facility
The table shows the mostly used e-banking service facility.
Mostly used internet banking facility (Table 4.7)
SERVICE NO OF RESPONDENTS PERCENTAGE %
Withdrawals 56 56 %
Balance Enquiry 24 24 %
Deposits 2 2 %
Cheque 6 6 %
DD 2 2 %
Bills Payments 10 10 %
Total 100 100 %
INTERPRETATION
The above table NO 4.7 reveals Majority of the respondents uses withdrawal
facility(56%).Most of the companies transfer salaries of the employees’ in to their bank accounts.
Employees prefer ATMs to withdraw their salary. That is why majority of the respondents uses
withdrawal facility of internet banking. Balance enquiry comes in the second position with a total
of 24%.Cheque,DD and Bill payment are used by 6%,2% and 10% respectively. Depositing is an
important facility of banking as same as that of withdrawal. Unfortunately only 1% of respondents
uses e-facilities for depositing. It may be due to the lack of adequate number of CDMs in the
locality.
Graphical representation of the classification is given below:

38
Figure 4.7
56
24
2
6
2
10
100
NO OF RESPONDENTS
WITHDRAWALS BALANCE ENQUIRY DEPOSITS CHEQUE
DD BILL PAYMENTS Total

39
8.Satisfactory level of respondents with internet banking facility of SBI
Satisfactory level of respondents in accordance with the online banking facility of SBI is
given in the table below.
Satisfaction level (Table 4.8)
SATISFACTORY LEVEL NO OF RESPONDENTS PERCENTAGE %
Highly satisfied 22 22 %
Satisfied 54 54 %
Neutral 4 4 %
Dissatisfied 12 12 %
Highly dissatisfied 8 8 %
Total 100 100 %
INTERPRETATION
The above table NO 4.8 reveals More than half (54%) of the respondents are satisfied with
the online banking facilities of SBI.22% of the respondents says that they are highly satisfied. SBI
provides sound facilities to its online customers. But 12% are dissatisfied and 8% are highly
dissatisfied.4% had no opinion regarding this. From this we can analyse that the online banking of
SBI plays a predominant role for fulfilling majority of customer needs.
The below graph shows the satisfactory level of respondents with online banking:

40
Figure 4.8
0
20
40
60
80
100
120
22%
54%
4% 12%
8%
100%
Chart Title
NO OF RESPONDENTS PERCENTAGE

41
9.Opinion about computerization process of SBI
The table shows the opinion of respondents about the computerization process of SBI.
Opinion (Table 4.9)
ITEMS NO OF RESPONDENTS PERCENTAGE %
Increased efficiency 28 28 %
Reduces wastage of time 36 36%
24 * 7 specilities 32 32%
Any others 4 4%
Total 100 100%
INTERPRETATION
The above table NO 4.9 reveals The first and foremost aim of bank computerization is to
reduce the time wastage. Computerizations process of SBI fulfilled its main aim. Because 36% of
the respondents comment that computerization process reduces time wastage. The another
important merit behind bank computerization is 24 X 7 specilities.32% of the respondents quoted
it.28% of the respondents tells that bank computerization increased efficiency. The rest 4%
suggests some other opinions. It is a fact that now a days the time can be saved through banking
transactions because of modern techniques.
Graphical representation of computerization process of SBI is given below(4.9):

43
10.Opinion about the effectiveness of e-banking
The below table shows the opinion of respondents in accordance with the effectiveness of
e-banking.
Effectiveness (Table 4.10)
EFFECTIVENESS NO OF RESPONDENTS PERCENTAGE %
Excellent 46 46%
Good 30 30%
Poor 12 12%
Very poor 12 12%
Total 100 100%
INTERPRETATION
The above table NO 4.10 reveals 46% of the respondents replied ‘Excellent’.30% of the
respondents replied ‘good’.6% stated ‘poor’ as effectiveness of e-banking and the rest 6% selected
‘very poor’. Whatever it is, the degree of satisfaction is high.76% satisfied while only 24%
dissatisfied. From this analysis, we can see that 3/4th (96%) of the respondents are of the opinion
of ‘good’ or ‘very good. So others’ opinion can be negligible.
Here is the graphical representation of effectiveness of e-banking:

44
Figure 4.10
0 0.2 0.4 0.6 0.8 1 1.2
Chart Title

45
11.Satisfaction with the presents online banking system
The below table shows the satisfaction of respondents in the presents online banking
system.
Satisfaction level (Table 4.11)
SATISFACTION LEVEL NO OF RESPONDENTS PERCENTAGE %
Highly satisfied 32 32%
Satisfied 54 54%
Neutral 6 6%
Dissatisfied 6 6%
Highly satisfied 2 2%
Total 100 100%
INTERPRETATION
The above table NO 4.11 reveals As discussed earlier, the present online banking system
is very much modernized and gives maximum satisfaction to the customers. From the respondents’
side,58% are satisfied and 36% are highly satisfied .As usual there are also dissatisfied customers.
Dissatisfied customers occupies 6% and highly dissatisfied occupies 2%.6% had no opinion
regarding this.
The following shows the graphical representation of satisfaction level of customers:

46
Figure 4.11
0
50
100
150
200
250
300
350
400
325
54%
6% 6% 2%
100%
Chart Title

47
12.Got knowledge to use online banking
The below table describes how many customers got adequate knowledge with regard to
online banking.
Knowledge(Table 4.12)
ITEM NO OF RESPONDENTS PERCENTAGE %
Yes 42 42%
no 58 58%
total 100 100%
INTERPRETATION
The above table NO 4.12 reveals Not only the SBI, other banks also fails to give sufficient
knowledge about the usage of internet banking to customers. The same problem occurs here. Only
42% of the respondents have clear knowledge about the usage of internet banking. Rest of 58%
are still unknowing about the usage, means majority of the customers are unaware of the usage of
internet banking.
Here is the graphical representation of the current classification.

48
Figure 4.12
42
58
100
NO OF RESPONDENTS
Yes No Total

49
13.Drawbacks of online banking
The below table describes respondents’ reply towards the drawbacks of online banking.
Drawbacks of internet banking (Table 4.13)
Limited scope for personal advice 10 10
Fear about security 38 38
No direct communication bank 6 6
Lack of knowledge 40 40
All the above 6 6
Total 100 100
INTERPRETATION
The above table NO 4.13 reveals For each and everything in the universe, there will be
some drawbacks. Online banking has also some drawbacks as usual.40% of the total respondents
listed ‘lack of knowledge’ as the drawback of online banking.38% tells that ‘fear about security’
is the drawback of online banking. In the opinion of 10%, ‘the limited scope for personal advice
is the drawback of online banking.6% reveals that the lack of ‘direct communication with bank’ is
the drawback. Another 6% quoted all of the above things as the drawback of online banking.
Following is the graphical representsion of drawbacks of internet banking:

50
Figure 4.13
0
20
40
60
80
100
120
Chart Title

51
14.Bank compensates when transactions are not completed in time
Below table discloses the data obtained from the current classification.
Degree of compromise(Table 4.14)
Agree 42 42
Disagree 12 12
Somewhat agree 46 46
Total 100 100
INTERPRETATION
The above table NO 4.14 reveals We know that SBI is the largest commercial bank in India.
It has to deal with lakhs of customers a day. So there is a chance for time lag in services. It is
essential to compensate customers when transactions are not completed in time. If they are not
compensated in a fair manner, they tend to migrate to any other service providers or bank. From
the study we came to realize that SBI compensates its customers not in a bad way.46% of the
respondents some what agrees to the statements and 42% completely agrees that SBI compensates
when any time lag is happened in the operations. But a minority of 12% completely disagrees.
Here is the graphical representation of degree of compromise.

52
Figure 4.14
0
20
40
60
80
100
120
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5
Chart Title

53
15.Satisfactory level with the services of online customer care executive
Here is the table showing the satisfactory level of respondents towards the online customer
care executive.
Services of online customer care executive(Table 4.15)
SATISFACTORY LEVEL NO OF RESPONDENTS PERCENTAGE %
Highly satisfied 24 24
Satisfied 42 42
Neutral 12 12
Dissatisfied 14 14
Highly dissatisfied 8 8
Total 100 100
INTERPRETATION
The above table NO 4.15 reveals In a bank, there will be e-literate and e-illiterate
customers. So the services of online customer care executive is essential. SBI posses the service
of online customer care executive 24 X 7.42% of the respondents are satisfied with the services
provided by the online customer care executive.24% are highly satisfied.14% are dissatisfied and
8% are highly dissatisfied.12% of the respondents doesn’t revealed their opinion.
The graph shows the graphical representation of the same.

54
Figure 4.15
24
42
12
14
8
100
24%
42%
12%
14%
8%
100%
0 20 40 60 80 100 120
Highly Satisfaction
Satisfaction
Neutral
Dissatisfaction
Highly Dissatisfaction
Total
CHART TITLE

55
16.Respondents’ attitude towards bank
Below table shows the attitude of respondents’ towards the bank.
Attitude to bank(Table 4.16)
Positive 92 92
Negative 8 8
Total 100 100
INTERPRETATION
The above table NO 4.16 reveals It is clear from this analysis that majority respondents are
satisfied with the services provided by SBI. More than 3/4th (92%) of the respondents have a
positive attitude towards the bank. Only 8% have a negetive attitude. Minority is dominated by
majority. So it can be avoided.
Graphical representation of respondents’ attitude towards bank is given below.

56
Figure 4.16
92
8
100
NO OF RESPONDENTS
Positive Negative Total

57
17.Performance and service of the bank
Below table shows the satisfactory level of the bank with respect to the performance and
service of the bank.
Performance of the bank(Table 4.17)
PARTICULARS NO OF RESPONDENTS PERCENTAGE %
Highly satisfied 66 66
Satisfied 22 22
Dissatisfied 8 8
Neutral 4 4
Total 100 100
INTERPRETATION
The above table NO 4.17 reveals From the above table, it is clear that majority of the
respondents are satisfied with the performance and service of the bank. Only 8% of the total
respondents are dissatisfied with this.88% of the respondents comes under the heading highly
satisfied and satisfied.4% didn’t replied for this. So we assume that the customer satisfaction level
of the bank is higher. This classification reveals the love and affection of respondents towards the
bank.
Here is the graph showing satisfactory level of respondents with respect to the
performance and service of the bank

58
Figure 4.17
0
20
40
60
80
100
120
Agree
Disagree
Some What
Agree Neutral
Total
Chart Title

59
CHAPTER V
SUMMARY OF THE FINDINGS , SUGGESTIONS AND CONCLUSION
5.1 FINDINGS
The following points were found from the study:
1. The categorisation of 100 respondents showed that 72% were males and 28%
representing females.
2. The age statistics indicated that least age groups were those above 55 years which was
represented 2% of the respondents sampled for the study.Additionally the highest age groups from
the study were those between 18-25 years.
3. In the case of marital status,majority of the respondents belongs to unmarried group.
4. Government employees,NRIs,Students and professionals most commonly use internet
banking services.Others were minority,
5. In terms of education,none of the respondents were without any formal education.The
most represented educational levels were those with a degree which was made up of 32%.This was
followed by 38% of respondents who were with a masters degree.The least represented educational
level were those with basic education who were 6%.It shows that highly qualified persons prefer
internet banking more than that of others.
6. Middle class people prefer internet banking more.People having income in between
10000 and 30000 uses internet banking than others as per the study conducted.
7. Out of the internet banking services,withdrawal is the most preferred internet banking
service of SBI.
8. More than 3/4th of the respondents are satisfied with the internet banking facilities of
SBI.
9. From the study,it is clear that internet banking reduces time wastage and increases
efficiency.
10. Majority (58%) of the respondents are unaware of the usage of internet banking.

60
11. Lack of knowledge about usge and fear about security are the major drawbacks of
internet banking.
12. The website performance of SBI is rated excellent.Also lion’s share are of the opinion
that the website of SBI is well organised,simple and reliable.
13. SBI’s website is always available for business.
5.2 SUGGESTIONS
 Existing complaint resolving mechanism have to be retained.
 Existing customer – bank relationship to be maintained to get more customers.
 Proper feedback and follow up procedures to be introduced to delight the customers.
 Bank should educate the senior citizens regarding the use and services of internet bankng.
 Bank can include a demo video on their website describing the procedures of various
internet banking services, so that more customers will use facilities like stop payment,
cheque book orders etc.
 Regarding the applying of loans through internet banking,bank should ease the procedures,
so that many will be able to apply online.
 Brand positioning have to be assigned for different type of customers.
 Adequate number of cash depository machines should be fixed in proper locations.

61
5.3 CONCLUSION
The study has analysed the overall perception of customers regarding the services of
internet banking.Age and qualification are the important demographic factors which used to
measure the perception of customers on internet banking services.The study conclude that different
age groop of customers have different perception towards the internet banking services and the
usage level of customers are different.So bank should concentrate on all the age group of
customers.It is also seen that different education group of customers have different perception
towards internet banking.There are good number of customers in every group.Bank should educate
the senior citizens about the usage of internet banking services.

62
BIBLIOGRAPHY
Book and Journals
1. Philip Kotler Kevin kellerLane prentice - Hall of India P Ltd Edition 2007
2. C.R Kothari Research Methodology New Age International Publication Limited Second
revised Edition 2006
3. P.N Arora & S.Arora Static for Management Sultan Chand Publication 3rd Revised Edition
2006
Websites:
1. www.google.com
2. www.wikipedia.com

63
CUSTOMER SATISFACTION ON E-BANKING SERVICE RENDED BY SBI
IN TIRUPUR BRANCH
Name
1.Age
A) 18yrs - 25yrs B) 25yrs - 35yrs C) 35yrs - 45yrs D) Above 45yrs
2./Gender
A)Male B) Female C) Transgender
3.Marital Status
A)Married B) Single
4.Occupation
A) Govt employee B) Self Employee C) Student D) Others
5. What is the customer educational qualification?
A). Below SSLC B). SSLC C). HSC D). Graduate
E). Post graduate F). Others
6. Customers monthly income?
A). Below RS 10000 B). RS 10000 – 20000 C). RS 20000 – 30000 D). Above RS 30000
7. What facility of internet banking service used by customers?
A). Withdrawal B). Balance enquiry C). Deposit D). Cheque E). DD F). Bill payment
8. What the satisfaction level of customers with internet banking facility of SBI?
A). Highly satisfied B). Satisfied C). Neutral D). Dissatisfied
9. Customers opinion about computerization process of SBI?
A). Increased efficiency B). Reduces wastages of time C). 24*7 Specilities
D). Any others E). Highly dissatisfied

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10. What the opinion about the effectiveness of e-banking?
A). Excellent B). Good C). Poor D). Very poor
11. What is the satisfactory level of customers with present online banking system?
A). Highly satisfied B). Satisfied. C). Neutral D). Dissatisfied E). Highly dissatisfied
12. What is the customers knowledge about using online banking?
A). Yes B). No
13. What is the limitation in online banking considered by customer?
A). Limited service for personal advise B). Fears about securities
C). No direct communication with bank D). Lack of knowledge E). All the above
14. Whether the compensation provide by the bank when transaction are not completed at the
time?
A). Agree B). Disagree C). Somewhat agree
15. What is the satisfactory level with the service of online customer care executive?
A). Highly satisfied B). Satisfied C). Neutral D). Dissatisfied E). Highly dissatisfied
16 Customers attitude towards bank?
A). Positive B). Negative
17.Opinion about performance and service of the bank?
A). Hhighly satisfied B). Satisfied C). Neutral D). Dissatisfied E). highly dissatisfied

CUSTOMER SATISFACTION ON E-BANKING SERVICE BY SETHU

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