Project Report ON: State Bank of India (Sbi) & Industrial Credit & Investmentcorporation Ofindia Bank (Icici)

PROJECT REPORT
ON
COMPETITIVE ANALYSIS OF ONLINE BANKING

FOR
STATE BANK OF INDIA (SBI)
&
INDUSTRIAL CREDIT &
INVESTMENTCORPORATION OFINDIA BANK (ICICI)
By
AMLAN KUMAR MUKHERJEE
ROLL NO. 195
In Partial fulfillment for the award of the degree

Post Graduate Diploma in Management
2012-14
New Delhi Institute of Management

50(B&), 60, Tughlakabad Institutional Area, New Delhi-110062
E-mail: Placement@ndimdelhi.org Website: www.ndimdelhi.org
PROJECT REPORT ON
COMPETITIVE ANALYSIS OF ONLINE
BANKING
FOR
&
BY
AMLAN KUMAR MUKHERJEE
ROLL NO. - 195
In Partial fulfillment for the award of the degree

Post Graduate Diploma in Management
2012-14

50(B&), 60, Tughlakabad Institutional Area, New Delhi-110062
E-mail: Placement@ndimdelhi.org Website: www.ndimdelhi.org
Competitive Analysis of E-Banking for SBI & ICICI Bank 2014
PROJECT REPORT ON
Competitive Analysis of E-Banking
For
State Bank of India (SBI)
&
Industrial Credit & Investment Corporation of
India Bank (ICICI)
Under the Supervision

Of
Prof. Mr. Vineet Vishnu
Submitted By: Submitted to:

Amlan Kumar Mukherjee Prof. Mr. Vineet
Vishnu
DECLARATION

I, Amlan Kumar Mukherjee, student of New Delhi Institute of Management,

Batch (2012 - 2014), declare that each and every part of the Project Report on
‘Competitive Analysis of E-Banking for State Bank of India (SBI) & ICICI
Bank’ that I have submitted is original.
I was in contact with my faculty guide Prof. Mr. Vineet Vishnu and have
contacted for discussing on the project.
Date of project submission: ____________________.
(Amlan Kumar Mukherjee)
Faculty Mentor’s Comments:

_____________________________________________________________________________________
____
_____________________________________________________________________________________
____
_____________________________________________________________________________________
_________________________.
Date:____________________.
(Prof. Mr. Vineet Vishnu)

PREFACE
Today’s business environment demands that managers possess a wide range of

Knowledge, skills and competencies as well as sound understanding of
management processes and functions. Managers need to be able to make best
use of their time and talents, and of other people’s, and to work with and
through others to achieve corporate objectives. They also need to demonstrate a
full understanding of business environment and of their organizations key
resources- its people, finance and information amongst these key resources. The
people factor is considered to be the most valuable asset for any organization.
These people i.e. the employees of the organization are the internal customers of
that organization who are as important as the external customers.
Earlier businesses were conducted with a sole objective of earning profits. But
now due to intense competition and changing market trends the focus of the
organizations has shifted to customer satisfaction; satisfaction of both internal
and external customers. External customers can be satisfied by providing them
what they want in a product. To satisfy the internal customers, organizations
adopt the method of providing the ‘quality of life’.

ACKNOWLEDGEMENT
Final year project is one of the most vital and active part of the curriculum of
management students, I take this opportunity to express my gratitude to all the
people who have guided and helped me directly or indirectly in the course of
completion of my project.
I feel immense pleasure to express a deep sense of gratitude to NDIM who has
given me an opportunity to do my final year’s final project& I would also
thankful to my Faculty Guide “Prof. Mr. Vineet Vishnu”. His valuable
suggestions, encouragement, contribution of time, counsel and for coordinating
the project work has helped me to complete my project successfully. This
project would not have been possible without his help.
A heartfelt thanks to the many respondents surveyed whose ideas, critical

insights and suggestions have been invaluable in the preparation of this report.
Last but by no means the least I would like to convey my special thanks to my
friends for helping and supporting me throughout my project work.
“With all sincere Regards and Thanks”
Amlan Kumar Mukherjee.

TABLE OF CONTENTS
Title Page No.
1. EXECUTIVE SUMMARY 1
2. INTRODUCTION 2
3. INDUSTRY PROFILE 4
3.1 Banking in India 4
3.2 History 5
3.3 Nationalization 9
3.4 Liberalization 9
3.5 Types of Bank 10
4. INTRODUCTION TO E-BANKING 12
4.1 Advantages of Internet Banking Facilities 15
4.2 Drivers of Change 15
4.3 Emerging Challenges 16
4.4 Main Concerns in Internet Banking 17
4.5 Strategies to be Adopted by Indian Banks 18
5. THE GLOBAL E-BANKING SCENARIO 20
6. INDIAN E-BANKING SCENARIO 23
7. SWAT ANALYSIS OF E-BANKING 25
8. COMPANY PROFILE 26
8.1 Industry Profile of State Bank of India (SBI) 26
8.2 Company Profile of State Bank of India (SBI) 29
8.3 Product Portfolio 30
8.4 Procedure of Opening an E-Banking A/C in SBI 31
8.5 Industry Profile of ICICI Bank 35
8.6 Company Profile of ICICI Bank 36
8.7 Product Portfolio 38
8.8 Procedure of Opening an E-Banking A/C in ICICI Bank 40
9. OBJECTIVE OF THE PROJECT 42
10. KEY RESPONSIBILITIES 43

10.1 Stages of the Project 43

11. RESEARCH METHODOLOGY 44
11.1 Meaning 44
11.2 Research Design 44
11.3 Sampling Design 44
11.4 Data Collection Methods 45
12. DATA ANALYSIS AND INTERPRETATIONS 47
(GRAPHICALLY)
13. FINDINGS 57
14. MAJOR LEARNING 58
15. LIMITATIONS AND CONSTRAINTS FACED 59
16. RECOMMENDATIONS & SUGGESTIONS 60
17. CONCLUSIONS 61
18. BIBLIOGRAPHY 62
ANNEXURE

1. EXECUTIVE SUMMARY
E-banking is a global component in the economy. The role of banks has been and
continues to be shaped by a number of mega trend the globalization of financial
markets, the rise of non bank competitors, the ongoing evolution and
implementation of new technologies, and deregulation and disintermediation (i.e.,
the movement away from the middleman role played by banks between depositors
and lenders).
The purpose of this report is to provide a straightforward approach to understand
the E-banking services provided by the two banks and how they are different from
each other which make one bank the best from the other. An effort is made to
understand the expectations of the customers with the two banks.
This report has all the details covering the level of E-banking services provided by
the ICICI and SBI Bank to its customers.
It includes the research on the customer’s expectations and requirements of E-
banking services of the bank. The research is basically done on the comparative
analysis of E-banking services of ICICI and SBI bank. It is done to know that
which bank is better in providing the e banking services. I have reviewed various
literatures on the net pertaining to the SBI & ICICI bank. Through the data analysis
it was found that allover the E-banking service of SBI bank is the best as compared
to ICICI bank. The SBI Bank has more customer satisfaction than the other banks.
Through a small sample size also it was revealed and proved that the public sector
bank that is SBI Bank is at a developing and progressing side than the ICICI Bank.
The customers were more positive in their approach. Making this kind of report
created enthusiasm and interest in this topic.
New Delhi Institute of Management Page 1

2. INTRODUCTION
Today’s business environment demands that every businessman possess a wide

range of knowledge, skills and competencies as well as sound understanding of
management processes and functions. Managers need to be able to make best use
of their time and talents and of other people’s, and to work with and through others
to achieve corporate objectives. They also need to demonstrate a full understanding
of business environment and of their organization’s key resources. Its people,
finance and information amongst these key resources, the people factor is
considered to be the most valuable asset for any organization. These people i.e.
employees of the organization are the internal customers of that organization who
are as important as the external customers.
Earlier business was conducted with a sole objective of earning profits. But now
due to intense competition and changing market trends the focus of the
organizations has shifted to customer satisfaction; satisfaction of both internal and
external customers. External customers can be satisfied by providing them what
they want in a product.
Satisfaction is the persons feeling of pleasure or disappointment resulting from

comparing a product perceived performance in relation to his/her expectation. If
the performance falls short of expectation the customer is dissatisfied. If the
performance matches the expectation the customer is satisfied. If the performance
exceeds the expectation the customer is highly satisfied or delighted. Many
companies are aiming for high satisfaction level because there are many customers
who switch between one or more brands in order to maximize their satisfaction
level.

Therefore,
• A customer is the most important person ever in any company.
• A customer never depends on company, but the company depends on him.
• A customer is the person who brings company his wants.
• A customer is not an interruption to marketers work; he is the purpose of it.
Without a sound and effective banking system in India it cannot have a healthy
economy. The banking system of India should not only be hassle free but it should
be able to meet new challenges posed by the technology and any other external and
internal factors. For the past three decades India's banking system has several
outstanding achievements to its credit. The most striking is its extensive reach. It is
no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian
banking system has reached even to the remote corners of the country. This is one
of the main reasons of India's growth process.

3. INDUSTRY PROFILE
3.1. BANKING IN INDIA

Banking in India originated in the first decade of 18th century with The General
Bank of India coming into existence in 1786. This was followed by Bank of
Hindustan. Both these banks are now defunct. The oldest bank in existence in India
is the State Bank of India being established as "The Bank of Bengal" in Calcutta in
June 1806. A couple of decades later, foreign banks like Credit Lyonnais started
their Calcutta operations in the 1850s. At that point of time, Calcutta was the most
active trading port, mainly due to the trade of the British Empire, and due to which
banking activity took roots there and prospered. The first fully Indian owned bank
was the Allahabad Bank, which was established in 1865.
By the 1900s, the market expanded with the establishment of banks such as Punjab
National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of
which were founded under private ownership. The Reserve Bank of India formally
took on the responsibility of regulating the Indian banking sector from 1935. After
India's independence in 1947, the Reserve Bank was nationalized and given
broader powers.
A bank has been described as an institution engaged in accepting deposits and
granting loans. It is the institution which deals in money and credit. It can also be
described as an institution which borrows idle resources, makes fund available to
those who need it and helps in cheap remittance of money from one place to
another. In the modern time term bank is used in wider term. Now it does not refer
only to particular place of lending and depositing money but it also acts as an agent
which looks after the various financial problems of its customers.

3.2. HISTORY
At the end of late-18th century, there were hardly any banks in India in the modern
sense of the term. At the time of the American Civil War, a void was created as the
supply of cotton to Lancashire stopped from the Americas. Some banks were
opened at that time which functioned as entities to finance industry, including
speculative trades in cotton. With large exposure to speculative ventures, most of
the banks opened in India during that period could not survive and failed. The
depositors lost money 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.
At the beginning of the 20th century, Indian economy was passing through a
relative period of stability. Around five decades have elapsed since the India's First
war of Independence, and the social, industrial and other infrastructure have
developed. At that time there were very small banks operated by Indians, and most
of them were owned and operated by particular communities. The banking in India
was controlled and dominated by the presidency banks, namely, the Bank of
Bombay, the Bank of Bengal, and the Bank of Madras - which later on merged to
form the Imperial Bank of India, and Imperial Bank of India, upon India's
independence, was renamed the State Bank of India. There were also some
exchange banks, as also a number of Indian joint stock banks. All these banks
operated in different segments of the economy. The presidency banks were like the
central banks and discharged most of the functions of central banks. They were
established under charters from the British East India Company. The exchange
banks, mostly owned by the Europeans, concentrated on financing of foreign trade.
Indian joint stock banks were generally undercapitalized and lacked the experience
and maturity to compete with the presidency banks, and the exchange banks. There
was potential for many new banks as the economy was growing. Lord Curzon had
observed then in the context of Indian banking: "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."
Under these circumstances, many Indians came forward to set up banks, and many
banks were set up at that time, a number of which have survived to the present
such as Bank of India and Corporation Bank, Indian Bank, Bank of Baroda, and
Canara Bank.
The Bank of Bengal, which later became the State Bank of India
The first bank in India, though conservative, was established in 1786. From 1786
till today, the journey of Indian Banking System can be segregated into three
distinct phases. They are as mentioned below:
· PHASE I - Early phase from 1786 to 1969 of Indian Banks

· PHASE II - Nationalization of Indian Banks and up to 1991
· PHASE III - Indian Financial & Banking Sector Reforms after 1991.
PHASE I:
The General Bank of India was set up in the year 1786. Next came Bank of
Hindustan and Bengal Bank.

The East India Company established

 Bank of Bengal (1809),
 Bank of Bombay(1840) and
 Bank of Madras (1843) as independent units and called it Presidency
Banks.
These three banks were amalgamated in 1920 and Imperial Bank of India was
established which started as private shareholders banks, mostly Europeans
shareholders. During the first phase the growth was very slow and banks also
experienced periodic failures between 1913 and 1948. There were approximately
1100 banks, mostly small. To streamline the functioning and activities of
commercial banks, the Government of India came up with The Banking
Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as
per amending Act of 1965 (Act No.23 of 1965). Reserve Bank of India was vested
with extensive powers for the supervision of banking in India as the Central
Banking Authority. During those day’s public has lesser confidence in the banks.
As an aftermath deposit mobilization was slow. Abreast of it the savings bank
facility provided by the Postal department was comparatively safer. Moreover,
funds were largely given to the traders.
PHASE II:
Government took major steps in this Indian Banking Sector Reform after
independence. In 1955, it nationalized Imperial Bank of India with extensive
banking facilities on a large scale especially in rural and semi-urban areas. Second
phase of nationalization Indian Banking Sector Reform was carried out in 1980
with seven more banks. This step brought 80% of the banking segment in India
under Government ownership.

The following are the steps taken by the Government of India to Regulate Banking
Institutions in the Country:
· 1949: Enactment of Banking Regulation Act.

· 1955: Nationalization of State Bank of India.
· 1959: Nationalization of SBI subsidiaries.
· 1961: Insurance cover extended to deposits.
· 1969: Nationalization of 14 major banks.
· 1971: Creation of credit guarantee corporation.
· 1975: Creation of regional rural banks.
· 1980: Nationalization of seven banks with deposits over 200 crores.
After the nationalization of banks, the branches of the public sector bank India
raised to approximately 800% in deposits and advances took a huge jump by
11,000%.Banking in the sunshine of Government ownership gave the public
implicit faith and immense confidence about the sustainability of these institutions.
PHASE III
This phase has introduced many more products and facilities in the banking sector
in its reforms measure. In 1991, under the chairmanship of M Narasimham, a
committee was set up by his name which worked for the liberalization of banking
practices.
The country is flooded with foreign banks and their ATM stations. Efforts are
being put to give a satisfactory service to customers. Phone banking and net
banking is introduced. The entire system became more convenient and swift. The
financial system of India has shown a great deal of resilience. It is sheltered from
any crisis triggered by any external macroeconomics shock as other East Asian
Countries suffered. This is all due to a flexible exchange rate regime, the Foreign

Reserves are high, the capital account is not yet fully convertible, and banks and
their customers have limited foreign exchange exposure.
3.3. NATIONALIZATION
By the 1960s, the Indian banking industry has become an important tool to
facilitate the development of the Indian economy. At the same time, it has emerged
as a large employer, and a debate has ensued about the possibility to nationalize the
banking industry. Indira Gandhi, the-then Prime Minister of India expressed the
intention of the GOI in the annual conference of the All India Congress Meeting in
a paper entitled "Stray thoughts on Bank Nationalization." The paper was received
with positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI
issued an ordinance and nationalized the 14 largest commercial banks with effect
from the midnight of July 19, 1969. 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
(Acquition and Transfer of Undertaking) Bill, and it received the presidential
approval on 9th 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 GOI controlled
around 91% of the banking business of India.
After this, until the 1990s, the nationalized banks grew at a pace of around 4%,
closer to the average growth rate of the Indian economy.
3.4. LIBERALIZATION
In the early 1990s the then Narasimha Rao government embarked on a policy of
liberalization and gave licenses to a small number of private banks, which came to
be known as New Generation tech-savvy banks, which included banks such as UTI
Bank(now re-named as Axis Bank) (the first of such new generation banks to be
set up), ICICI Bank and HDFC Bank. This move, along with the rapid growth in
the economy of India, kick started 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 setup 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 49% 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.
3.5. TYPES OF BANK

Banks' activities can be divided into retail banking, dealing directly with
individuals and small businesses; business banking, providing services to mid-
market business; corporate banking, directed at large business entities; private
banking, providing wealth management services to High Net Worth Individuals
and families; and investment banking, relating to activities on the financial
markets. Most banks are profit-making, private enterprises. However, some are
owned by government, or are non-profits. Central banks are normally government
owned banks, often charged with quasi-regulatory responsibilities, e.g. supervising
commercial banks, or controlling the cash interest rate. They generally provide
liquidity to the banking system and act as Lender of last resort in event of a crisis.
3.5.1 Nationalized Banks in India

Banking System in India is dominated by nationalized banks. The nationalization
of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister.
The major objective behind nationalization was to spread banking infrastructure in
rural areas and make available cheap finance to Indian farmers. Fourteen banks
were nationalized in 1969.
Before 1969, State of India (SBI) was only public sector bank in India. SBI was
nationalized in 1955 under the SBI Act of 1955. The second phase of
nationalization of Indian banks took place in the year 1980. Seven more banks
were nationalized with deposits over 200 crores.
3.5.2Private Banks in India
All the banks in India were earlier private banks. They were founded in the pre-
independence era to cater to the banking needs of the people. But after
nationalization of banks in 1969 public sector banks came to occupy dominant role
in the banking structure. Private sector banking in India received a fillip in 1994
when Reserve Bank of India encouraged setting up to private banks as part of its
policy of liberalization of the Indian Banking Industry. Housing Development
Finance Corporation Limited (HDFC) was amongst the first to receive an ‘In
principle’ approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector.
Private Banks have played a major role in the development of Indian banking
industry. They have made banking more efficient and customer friendly. In the
process they have jolted public sector banks out of complacency and forced them
to become more competitive.

4. INTRODUCTION TO E-BANKING
“Online Banking – A Global Way to Bank!”

Today we are in the era of globalization. Multinational organizations worldwide
have adopted globalization as their first strategic choice. Advancement in
technology has facilitated globalization too. Same holds true for banking
industry. Technological advancement, changes and innovations have always
leveraged the standards of mankind. It has given new dimensions to society. It has
also altered the way services can be offered. Information Technology has been a
major driving force of economies worldwide during the last 2 decades. Its impact
has been readily felt in banking industry also. With the invention of computer,
operations and database management became quite handy. When ARPANET
project of Defense Academy of US began, a new technology was born with the
advent of internet. The two technological breakthroughs – computers and internet
has radically changed the way world can interact and business could be
done. Metamorphosis and clubbing of these technologies gave rise to the growth
of ITES (Information Technology enabled Services) across the globe. There has
been a marked improvement particularly in the area of maintenance, storage,
availability and transfer of data. The world has literally shrunk to become a
"global village". IT has played a crucial role in the financial services. Internet has
proved a magic wand for financial services and products, banking in
particular. Banking sector has been early adopter of technology to offer latest
modes for transacting business. Banks have transformed themselves and are
offering services through internet. From computerization to networking to ATMs
and now E-banking, banks have moved up the value chain. This phenomenon of
offering services through internet is referred as internet banking. The current

article discusses internet banking in India and focuses upon key challenges before
banking industry.
Online Banking Systems in India and the features available with different banks
across India. If you look into the modern age of banking, Online Banks or net
banking made things much easier for the people and saves lot of time. The
traditional way of standing in the queue and filling up all the forms, now it’s no
hassle for making any transaction with the banks. Every bank has their own
features and some banks still not having the more advanced features like
transferring money to any banks across India, easy registration for net banking, etc.
The Internet banking is changing the banking industry and is having the major
effects on banking relationships. Even the Morgan Stanley Dean Witter Internet
research emphasized that Web is more important for retail financial services than
for many other industries. Internet banking involves use of Internet for delivery of
banking products & services. It falls into four main categories, from Level 1 -
minimum functionality sites that offer only access to deposit account data - to
Level 4 sites - highly sophisticated offerings enabling integrated sales of additional
products and access to other financial services- such as investment and insurance.
In other words a successful Internet banking solution offers
 Exceptional rates on Savings, CDs, and IRAs

 Checking with no monthly fee, free bill payment and rebates on ATM
surcharges
 Credit cards with low rates
 Easy online applications for all accounts, including personal loans and
mortgages
 24 hour account access

 Quality customer service with personal attention
Electronic Banking is an umbrella term for the process by which a customer

may perform banking transactions electronically without visiting a brick-and-
mortar institution.
The following terms all refer to one form or another of electronic
banking: personal computer (PC) banking, Internet banking, virtual banking,
online banking, home banking, remote electronic banking, and phone banking. PC
banking and Internet or online banking is the most frequently used designations. It
should be noted, however, that the terms used to describe the various types of
electronic banking are often used interchangeably.
Electronic banking is an activity that is not new to banks or their customers. Banks
having been providing their services to customers electronically for years through
software programs. These software programs allowed the user’s personal computer
to dial up the bank directly. In the past however, banks have been very reluctant to
provide their customers with banking via the Internet due to security concerns.
Today, banks seem to be jumping on the bandwagon of Internet banking. Why is
there a sudden increase of bank interests in the Internet? The first major reason is
because of the improved security and encryption methods developed on the
Internet. The second reason is that banks did not want to lose a potential market
share to banks that were quick to offer their services on the Internet. Many
of the banks like ICICI, HDFC, IndusInd, IDBI, Citibank, Global Trust
Bank (GTB), Bank of Punjab and UTI were offering E-banking services. Based on
the above statistics and the analysts’ comments that India had a high growth
potential for E-banking the players focused on increasing and improving their E-

banking services. As a part of this, the banks began to collaborate with functions
online.
Why is there a sudden increase of bank interests in the Internet? The first major
reason is because of the improved security and encryption methods developed on
the Internet. The second reason is that banks did not want to lose a potential market
share to banks that were quick to offer their services on the Internet.
4.1. ADVANTAGES OF INTERNET BANKING FACILITY

Advantages previously held by large financial institutions have shrunk
considerably. The Internet has leveled the playing field and afforded open access to
customers in the global marketplace. Internet banking is a cost-effective delivery
channel for financial institutions. Consumers are embracing the many benefits
of Internet banking. Access to one’s accounts at anytime and from any location via
the World Wide Web is a convenience unknown a short time ago. Thus, a bank’s
Internet presence transforms from ‘brouchreware’ status to ‘Internet banking’
status once the bank goes through a technology integration effort to enable the
customer to access information about his or her specific account relationship. The
six primary drivers of Internet banking includes, in order of primacy are:
 Improve customer access
 Facilitate the offering of more services
 Increase customer loyalty
 Attract new customers
 Provide services offered by competitors
 Reduce customer attrition
4.2. DRIVERS OF CHANGE

Advantages previously held by large financial institutions have shrunk

considerably. The Internet has leveled the playing field and afforded open access to
customers in the global marketplace. Internet banking is a cost-effective delivery
channel for financial institutions. Consumers are embracing the many benefits of
Internet banking. Access to one's accounts at anytime and from any location via the
World Wide Web is a convenience unknown a short time ago. Thus, a bank's
Internet presence transforms from 'brouchreware' status to 'Internet banking' status
once the bank goes through a technology integration effort to enable the customer
to access information about his or her specific account relationship. The six
primary drivers of Internet banking includes, in order of primacy are:
 Improve customer access

 Facilitate the offering of more services
 Increase customer loyalty
 Attract new customers
 Provide services offered by competitors
 Reduce customer attrition
4.3. EMERGING CHALLENGES
Information technology analyst firm, the Meta Group, recently reported that
"financial institutions who don't offer home banking by the year 2000 willbecome
marginalized." By the year of 2002, a large sophisticated and highly competitive
Internet Banking Market will develop which will be driven by
 Demand side pressure due to increasing access to low cost electronic

services.
 Emergence of open standards for banking functionality.

 Growing customer awareness and need of transparency.

 Global players in the fray
 Close integration of bank services with web based E-commerce or even
disintermediation of services through direct electronic payments (E-
Cash).
 More convenient international transactions due to the fact that the
Internet along with general deregulation trends, eliminate geographic
boundaries.
 Move from one stop shopping to 'Banking Portfolio' i.e. unbundled
product purchases.
Certainly some existing brick and mortar banks will go out of business. But that's
because they fail to respond to the challenge of the Internet. The Internet and it's
underlying technologies will change and transform not just banking, but all aspects
of finance and commerce. It represents much more than a new distribution
opportunity. It will enable nimble players to leverage their brick and mortar
presence to improve customer satisfaction and gain share. It will force lethargic
players who are struck with legacy cost basis, out of business-since they are unable
to bring to play in the new context.
4.4. MAIN CONCERNS IN INTERNET BANKING
In a survey conducted by the Online Banking Association, member institutions

rated security as the most important issue of online banking. There is a dual
requirement to protect customers' privacy and protect against fraud.
BankingSecurely: Online Banking via the World Wide Web provides an overview
of Internet commerce and how one company handles secure banking for its
financial institution clients and their customers. Some basic information on the

transmission of confidential data is presented in Security and Encryption on the

Web. PC Magazine Online also offers a primer: How Encryption Works. A multi-
layered security architecture comprising firewalls, filtering routers, encryption and
digital certification ensures that your account information is protected from
unauthorized access:
 Firewalls and filtering routers ensure that only the legitimate Internet users
are allowed to access the system.
 Encryption techniques used by the bank (including the sophisticated public
key encryption) would ensure that privacy of data flowing between the
browser and the Infinity system is protected.
 Digital certification procedures provide the assurance that the data you
receive is from the Infinity system.
4.5.STRATEGIES TO BE ADOPTED BY INDIAN BANKS
Internet banking would drive us into an age of creative destruction due to non-
physical exchange, complete transparency giving rise to perfectly electronic
market place and customer supremacy. The question to be asked right now is
"What the Indian Banks should do" Whatever is the strategy chosen and options
adopted, certain key parameters would determine the bank's success on web:
1. For long term success, a bank may follow:
 Adopting a webs mindset

 Catching on the first mover's advantage
 Recognizing the core competencies
 Ability to deal multiplicity with simplicity

 Senior Management initiative to transform the organization from inward to

outward looking
 Aligning roles and value propositions with the customer segments ·
Redesigning optimal channel portfolio
 Acquiring new capabilities through strategic alliances.
2. The above can be implemented in four steps:
 Familiarizing the customer to new environment by demo version of software

on bank's web site. This should contain tour through the features which are
to be included. It will enable users to give suggestions for improvements,
which can be incorporated in later versions wherever feasible.
 Second phase provides services such as account information and balances,
statement of account, transaction tracking, mail box, check book issue, stop
payment, financial and customized information.
 The third phase may include additional services such as fund transfers, DD
issue, standing instructions, opening fixed deposits, intimation of loss of
ATM cards.
 The last step should include advanced corporate banking services like third
party payments, utility bill payments, establishment of L/Cs, Cash
Management Services etc. Enhanced plan for the customers in future can
include requests for demand drafts and pay orders and many more to bring in
the ultimate in banking convenience.

5. THE GLOBAL E-BANKING SCENARIO
The banking industry is expected to be a leading player in e-business. While the

banks in developed countries are working primarily via Internet as non-branch
banks, banks in the developing countries use the Internet as an information
delivery tool to improve relationship with customers.
In early 2001, approximately 60 percent of e-business in the UK was concentrated
in the financial services sector, and with the expected 10-fold increase of the
British e-business market by 2004, the share of the financial services will further
increase. Around one fifth of Finish and Swedish bank customers are banking
online, while in the US, according to UNCTAD, online banking is growing at an
annual rate of 60 percent and the numbers of online accounts are expected to reach
15 million by 2003.Banks have established an Internet presence with various
objectives. Most of them are using the Internet as a new distribution channel.
Financial services, with the use of Internet, may be offered in an equivalent
quantity with lower costs to the more potential customers.
There may be contacts from each corner of the world at any time of day or night.
This means that banks may enlarge their market without opening new branches.
The banks in the US are using the Web to reach opportunities in three different
categories: to market information, to deliver banking products and services, and to
improve customer relationship.
In Asia

The major factor restricting growth of E-banking is security, in spite of several

countries being well connected via Internet. Access to high-quality E-banking
products is an issue as well. Majority of banks in Asia are just offering basic
services compared with those of developed countries. Still, E-banking seems to
have a future in Asia. According to McKinsey survey, E-banking will succeed if
the basic features, especially bill payment, are handled well. Bill payment was the
most popular feature, cited by 40 percent of respondents of the survey. However,
providing this service would be difficult for banks in Asia because it requires a
high level of security and involves arranging transactions with a variety of players.
In India
Approximately one percent of high and middle-income group banking customers
conducted banking on the Internet in 2000 compared to 5 to 6 percent in Singapore
and South Korea. In 2001, a Reserve Bank of India survey revealed that more than
20 major banks were either offering E-banking services at various levels or
planned to do so in the near future. Some of the private banks included ICICI
Bank, HDFC Bank, IndusInd Bank, IDBI Bank, Citibank, Global Trust Bank,
Bank of Punjab and UTI Bank.
In the same year, out of an estimated 0.9 million Internet user base, approximately
17 percent were reported to be banking on the Internet. The above statistics reveal
that India does have a high growth potential for E-banking. The banks have already
started focusing on increasing and improving their E-banking services. As a part of
this, the banks have begun to collaborate with various utility companies to enable
the customers to perform various functions online. In 2001, over 50 percent of the
banks in the US were offering E-banking services.
However, large banks appeared to have a clear advantage over small banks in the
range of services they offered. Some banks in the US were targeting their Internet
strategies towards business customers. Apart from affecting the way customers
received banking services; E-banking was expected to influence the banking
industry structure. The economics of E-banking was expected to favor large banks
because of economies of scale and scope, and the ability to advertise heavily.
Moreover, E-banking offered entry and expansion opportunities that small banks
traditionally lacked.
In Europe
The Internet is accelerating the reconfiguration of the banking industry into three
separate businesses: production, distribution and advice. This reconfiguration
is being further driven by the Internet, due to the combined impact of:
1) The emergence of new, more focused business models.
2) New technological capabilities that reduces banking relationship and

transaction costs.
3) High degree of uncertainty over the impact that new entrants will have on
current business models.
Though E-banking in the Europe is still in the evolutionary stage, it is very clear
that it is having a significant impact on traditional banking activities. Unlike in
the US, though large banks in the Europe have a competitive edge due to their
ability to invest heavily in new technologies, they are still not ready to embrace
E-banking. Hence, medium-sized banks and start-ups have an important role to
play on the E-banking front if they can take concrete measures quickly and
effectively.

6. INDIAN E-BANKING SCENARIO
The Reserve Bank of India constituted a working group on Internet Banking. The
group divided the internet banking products in India into 3 types based on the
levels of access granted. They are:
i) Information Only System: General purpose information like interest rates,
branch location, bank products and their features, loan and deposit calculations are
provided in the banks website. There exist facilities for downloading various types
of application forms. The communication is normally done through e-mail. There
is no interaction between the customer and bank's application system. No
identification of the customer is done. In this system, there is no possibility of any
unauthorized person getting into production systems of the bank through internet.
ii) Electronic Information Transfer System: The system provides customer-
specific information in the form of account balances, transaction details, and
statement of accounts. The information is still largely of the 'read only' format.
Identification and authentication of the customer is through password. The
information is fetched from the bank's application system either in batch mode or
off-line. The application systems cannot directly access through the internet.
iii) Fully Electronic Transactional System: This system allows bi-directional
capabilities. Transactions can be submitted by the customer for online update. This
system requires high degree of security and control. In this environment, web
server and application systems are linked over secure infrastructure. It

comprises technology covering computerization, networking and security, inter-

bank payment gateway and legal infrastructure
As per the international report the banking transactions on a brick and mortar
banking costs around $ 1.1. While through ATM it costs around $ 0.27 and just 1
percent of over the counter banking in case of Internet banking. Statistics such as
these have woken the Indian Banking Industry. Thus, the Indian banking system is
seeing a fabulous change in the quality of service provided by them. Technology is
the root of this change, which is implemented by the banks’ to win more business
from customers. Almost all the private sector banks are moving towards e-enabling
their existing products. HDFC Bank and ICICI Bank have taken a lead in
introducing E-banking in India. Internet banking starts from migrating existing
products to the net. This started initially with simple functions such as getting
information about interest rates, checking account balances and computing loan
eligibility. Then the services were extended to online bill payment, transfer of
funds between accounts and cash management services for corporate. Recently,
banks started setting up payment gateways for B2B and B2Ctransactions. This is to
facilitate payment for e-commerce transactions by directly debiting bank accounts
or through credit cards. Banks can earn a commission based income, on the
transaction or sale value resulting in higher other income. This could be more than
the revenues they can generate from credit card transactions. Private sector banks
have leveraged the Internet effectively in taking away the customers from public
sector banks and significantly increased their revenue potential. Internet banking is
just one manifestation of these banks’ technological capabilities. They have a
complete automation, an electronic customer database, real time transaction
processing capabilities and the latest technological platforms. Management of
these banks is very focused in using technology as a key competitive tool. The
capability of the management is also visible in terms of their profitability. Among
the private sector banks HDFC Bank and ICICI Bank have excellent returns on
equity compared to their peers in the industry.
7. SWOT ANALYSIS OF E-BANKING:
A SWOT Analysis is an effective tool which can be used to examine the issues
which will directly affect the success of alternative delivery mechanisms. In my
opinion, the SWOT analysis is as follows:
Strengths:
• Customer access to information 24 hours per day.
• Timely access to information.
• The ability to offer a customer more than one method of retrieving information.
• Sophisticated technology systems will help to make a banking institute "future-
proof."
• Diversity helps capture different types of markets.
• The ability to cut internal costs due to advanced technology.
• Increased efficiency due to automation.
• Increased accuracy of banking transactions.
Weaknesses:
• High price of service.
• Continual altering of customer wants and needs.
• Hostile feelings of employees due to possible pending lay-offs due to
automation.
• Multiple options for the customer.
• Initial investment in technology will be expensive.
Opportunities:
• The ability to obtain a larger customer base.
• Global expansion. This is an enormous market, which will be a great opportunity
in the future.
• The ability to take advantage of the growing popularity of Internet banking.
Threats:
• Continual changing technology.
• Uncertainty of the banking industry.
• Competition from "lower price" operations.
• Possible failure of product due to non-acceptance of customer.
• General competitiveness of the banking industry.
After reviewing this internal analysis, an aggressive strategy as well as a

diversification strategy is recommended. In other words, according to the SWOT
analysis, the online banking or E-banking industry should diversity by adding this
new technology. The results of the focus groups and survey influence this decision.

8. COMPANY PROFILE
8.1. INDUSTRY PROFLE OF STATE BANK OF INDIA (SBI)
The evolution of State Bank of India can be traced back to the first decade of the
19th century. It began with the establishment of the Bank of Calcutta in Calcutta,
on 2 June 1806. The bank was redesigned as the Bank of Bengal, three years later,
on 2 January 1809. It was the first ever joint-stock bank of the British India,
established under the sponsorship of the Government of Bengal. Subsequently, the
Bank of Bombay (established on 15 April 1840) and the Bank of Madras
(established on 1 July 1843) followed the Bank of Bengal. These three banks
dominated the modern banking scenario in India, until when they were
amalgamated to form the Imperial Bank of India, on 27 January 1921.
An important turning point in the history of State Bank of India is the launch of the
first Five Year Plan of independent India, in 1951. The Plan aimed at serving the
Indian economy in general and the rural sector of the country, in particular. Until
the Plan, the commercial banks of the country, including the Imperial Bank of
India, confined their services to the urban sector. Moreover, they were not
equipped to respond to the growing needs of the economic revival taking shape in
the rural areas of the country. Therefore, in order to serve the economy as a whole
and rural sector in particular, the All India Rural Credit Survey Committee
recommended the formation of a state-partnered and state-sponsored bank.
The All India Rural Credit Survey Committee proposed the take-over of the
Imperial Bank of India, and integrating with it, the former state-owned or state-

associate banks. Subsequently, an Act was passed in the Parliament of India in

May 1955. As a result, the State Bank of India (SBI) was established on 1 July
1955. This resulted in making the State Bank of India more powerful, because as
much as a quarter of the resources of the Indian banking system were controlled
directly by the State. Later on, the State Bank of India (Subsidiary Banks) Act was
passed in 1959. The Act enabled the State Bank of India to make the eight former
State-associated banks as its subsidiaries.
The State Bank of India emerged as a pacesetter, with its operations carried out by
the 480 offices comprising branches, sub offices and three Local Head Offices,
inherited from the Imperial Bank. Instead of serving as mere repositories of the
community's savings and lending to creditworthy parties, the State Bank of India
catered to the needs of the customers, by banking purposefully. The bank served
the heterogeneous financial needs of the planned economic development.
Branches
The corporate center of SBI is located in Mumbai. In order to cater to different
functions, there are several other establishments in and outside Mumbai, apart from
the corporate center. The bank boasts of having as many as 14 local head offices
and 57 Zonal Offices, located at major cities throughout India. It is recorded that
SBI has about 10000 branches, well networked to cater to its customers throughout
India.
ATM Services
SBI provides easy access to money to its customers through more than 8500 ATMs
in India. The Bank also facilitates the free transaction of money at the ATMs of
State Bank Group, which includes the ATMs of State Bank of India as well as the
Associate Banks – State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State
Bank of Indore, etc. You may also transact money through SBI Commercial and
International Bank Ltd by using the State Bank ATM-cum-Debit (Cash Plus) card.
Subsidiaries
The State Bank Group includes a network of eight banking subsidiaries and several
non-banking subsidiaries. Through the establishments, it offers various services
including merchant banking services, fund management, factoring services,
primary dealership in government securities, credit cards and insurance.
The eight banking subsidiaries are:
 State Bank of Bikaner and Jaipur (SBBJ)

 State Bank of Hyderabad (SBH)
 State Bank of India (SBI)
 State Bank of Indore (SBIR)
 State Bank of Mysore (SBM)
 State Bank of Patiala (SBP)
 State Bank of Saurashtra (SBS)
 State Bank of Travancore (SBT)
8.2.COMPANY PROFILE OF STATE BANK OF INDIA (SBI)

State Bank of India is an India-based bank. In addition to banking, the Company,
through its subsidiaries, provides a range of financial services, which include life
insurance, merchant banking, mutual funds, credit card, factoring, security trading,
pension fund management and primary dealership in the money market. It operates
in four business segments: Treasury, Corporate/Wholesale Banking, Retail
Banking and Other Banking Business. The Treasury segment includes the

investment portfolio and trading in foreign exchange contracts and derivative

contracts. The Corporate/Wholesale Banking segment comprises the lending
activities of Corporate Accounts Group, Mid Corporate Accounts Group and
Stressed Assets Management Group. The Retail Banking segment consists of
branches in National Banking Group, which primarily includes personal banking
activities, including lending activities to corporate customers having banking
relations with branches in the National Banking Group.
8.3. PRODUCT PROFILE

Personal Banking
 SBI Term Deposits SBI Loan For Pensioners

 SBI Recurring Deposits Loan Against Mortgage Of Property
 SBI Housing Loan Loan Against Shares & Debentures
 SBI Car Loan Rent Plus Scheme
 SBI Educational Loan Medi-Plus Scheme
Other Services
 Agriculture/Rural Banking
 NRI Services
 ATM Services
 Demat Services
 Corporate Banking
 Internet Banking
 Mobile Banking
 International Banking
 Safe Deposit Locker

 RBIEFT
 E-Pay
 E-Rail
 SBI Vishwa Yatra Foreign Travel Card
 Broking Services
 Gift Cheques
SBI offers Corporate and Retail Internet Banking Products and Other Value Added
Services-:
 E-Ticketing
 Bill Payment
 eZtrade@sbi
 RTGS/NEFT
 E-Payment
 Fund Transfer
 Third Party transfer
 Demand Draft
 Cheque Book Request
 Account opening request
 Demat Account Statement
8.4 . PROCEDURE FOR OPENING AN E-BANKING A/C IN SBI BANK
If a person having an account on SBI then it would be easier for you open an E-
banking account, just by going and meeting your bank manager, he will give a
form, just fill up and after few day you will be link to E-banking.
General Information
1. You should register for ‘OnlineSBI’ with the branch where you maintain the
account.
2. If you maintain accounts at more than one branch, you need to register at each
branch separately.
3. Normally OnlineSBI services will be open to the customer only after he
acknowledges the receipt of password.
4. We invite you to visit your account on the site frequently for transacting
business or viewing account balances. If you believe that any information relating
to your account has a discrepancy, please bring it to the notice of the branch by
email or letter.
5. In a joint account, all account holders are entitled to register, as users of
‘OnlineSBI’, but transactions would be permitted based on the account operation
rights recorded at the branch.
6. All accounts at the branch whether or not listed in the registration form, will be
available on the ‘OnlineSBI’. However the applicant has the option to selectively
view the accounts on the ‘OnlineSBI’.
 Security:
1. The Branch where the customer maintains his account will assign:
a)User-id
b)Password
2. The User-id and Password given by the branch must be replaced by UserName
and Password of customer’s choice at the time of first log-on. This is mandatory.
3. Bank will make reasonable use of available technology to ensure security and to
prevent unauthorized access to any of these services. The ‘OnlineSBI service is
VERISIGN certified which guarantees, that it is a secure site.
It means that
 You are dealing with SBI at that moment.

 The two-way communication is secured with 128-bit SSL encryption
technology, which ensures the confidentiality of the data during
transmission.
4. These together with access control methods designed on the site would afford a
high level of security to the transactions you conduct. SBI will soon be
implementing PKI/Digital Signature.
5. You are welcome to access ‘OnlineSBI’ from anywhere anytime. However, as a
matter of precaution, customers may avoid using PCs with public access.
6. There is no way to retrieve a password from the system. Therefore if a customer
forgets his password, he must approach the branch for re-registration.
Bank’s terms:
 All requests received from customers are logged for backend fulfillment and
are effective from the time they are recorded at the branch.
 Rules and regulations applicable to normal banking transactions in India will
be applicable mutatis mutandis for the transactions executed through this
site.
 The OnlineSBI service cannot be claimed as a right. The bank may also
convert this into a discretionary service anytime.
 Dispute between the customer and the Bank in this service is subject to the
jurisdiction of the courts in the Republic of India and governed by the laws
prevailing in India.
 The Bank reserves the right to modify the services offered or the Terms of
service of ‘OnlineSBI’. The changes will be notified to the customers
through a notification on the Site.

Customer’s obligations:
 The customer has an obligation to maintain secrecy in regard to Username &
Password registered with the Bank. The bank presupposes that login using
valid Username and Password is a valid session initiated by none other than
the customer.
 Transaction executed through a valid session will be construed by SBI to
have emanated from the registered customer and will be binding on him /
her.
 The customer will not attempt or permit others to attempt accessing the
‘OnlineSBI’ through any unlawful means.
Dos’ & Don’ts’:

 The customer should keep his/her ID and password strictly confidential and
should not divulge the same to any other person. Any loss sustained by the
customer due to non-compliance of this condition will be at his/her own risk
and responsibility and the Bank will not be liable for the same in any
manner.
 The customer is free to choose a password of his own for OnlineSBI
services. As a precaution a password that in is generic nature, guessable or
inferable personal data such as name, address, telephone member, driving
license, date of birth etc. is best avoided. Similarly it is a good practice to
commit the password to memory rather than writing it down somewhere.
 It may not be safe to leave the computer unattended during a valid session.
This might give access to your account information to others.

8.5. INDUSTRY PROFILE OF ICICI BANK

ICICI Bank started as a wholly owned subsidiary of ICICI Limited, an Indian
financial institution, in 1994. Four years later, when the company offered ICICI
Bank's shares to the public, ICICI's shareholding was reduced to 46%. In the year
2000, ICICI Bank offered made an equity offering in the form of ADRs on the
New York Stock Exchange (NYSE), thereby becoming the first Indian company
and the first bank or financial institution from non-Japan Asia to be listed on the
NYSE. In the next year, it acquired the Bank of Madura Limited in an all-stock
amalgamation. Later in the year and the next fiscal year, the bank made secondary
market sales to institutional investors.
With a change in the corporate structure and the budding competition in the Indian
Banking industry, the management of both ICICI and ICICI Bank were of the
opinion that a merger between the two entities would prove to be an essential step.
It was in 2001 that the Boards of Directors of ICICI and ICICI Bank sanctioned the
amalgamation of ICICI and two of its wholly-owned retail finance subsidiaries,
ICICI Personal Financial Services Limited and ICICI Capital Services Limited,
with ICICI Bank. In the following year, the merger was approved by its
shareholders, the High Court of Gujarat at Ahmedabad as well as the High Court of
Judicature at Mumbai and the Reserve Bank of India.
Present Scenario
ICICI Bank has its equity shares listed in India on Bombay Stock Exchange and
the National Stock Exchange of India Limited. Overseas, its American Depositary
Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). As of
December 31, 2008, ICICI is India's second-largest bank, boasting an asset value

of Rs. 3,744.10 billion and profit after tax Rs. 30.14 billion, for the nine months,
that ended on December 31, 2008.
Branches & ATMs
ICICI Bank has a wide network both in Indian and abroad. In India alone, the bank
has 1,420 branches and about 4,644 ATMs. Talking about foreign countries, ICICI
Bank has made its presence felt in 18 countries - United States, Singapore,
Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and
representative offices in United Arab Emirates, China, South Africa, Bangladesh,
Thailand, Malaysia and Indonesia. The Bank proudly holds its subsidiaries in the
United Kingdom, Russia and Canada out of which, the UK subsidiary has
established branches in Belgium and Germany.
8.6 .COMPANY PROFILE OF ICICI BANK
CICI Bank Limited (the Bank) is a banking company engaged in providing a range
of banking and financial services, including commercial banking and treasury
operations. It operates under four segments: retail banking, wholesale banking,
treasury and other banking. The Bank’s subsidiaries include ICICI Prudential Life
Insurance Company Limited, ICICI Lombard General Insurance Company
Limited, ICICI Trusteeship Services Limited, ICICI Prudential Pension Funds,
Management Company Limited, ICICI Home Finance Company Limited and
ICICI Securities Limited.
Products and Services
ICICI Bank is the one-stop shop for all your forex needs.
Whether your destination is Paris, Mauritius or enchanting Rome, ICICI Bank
offers the best of both worlds! We buy and sell the following:
ICICI Bank Travel Card: ICICI Bank Travel Card has made travel abroad
convenient and safe. Available in US Dollars, Australian Dollars, Canadian
Dollars, Swiss Francs, Euro and Pound Sterling, the international traveler is in fact
spoilt for choice.
Features of this power-packed Travel Card:
 Replacement Card
 SMS alerts for every transaction
 Online access
 Card enabled for Internet transactions
Travelers Cheques: When you travel abroad, you can opt for Travelers Cheques
(TCs) as an alternative to cash. These are cheques issued to you that offer you the
safety and security you need when on the move.
Unlike cash, if your traveler’s Cheques are lost or stolen they can be replaced
within 24 hours, virtually anywhere in the world by most banks, service
establishments and even by a large number of merchants. In fact, TCs are
considered the safest form of currency. In addition, they make it easier for you to
budget, track and control your travel expenses.
Travelers Cheques are recognized worldwide. In the U.S they can be used like cash
at retail locations, hotels and restaurants. Outside the U.S they can be used like
cash at many locations, or exchanged for local currency at banks, currency
exchanges, and travel service locations.
We offer you American Express Travelers Cheques in the following currencies:
United States Dollar, Great British Pound, Euro, Australian Dollars, Canadian
Dollars and Japanese Yen.
Travelers’ Cheques offer the following features:

 Accepted at numerous merchants for shopping

 Signature-based security
 Replacement of TCs within 24 hours across the world
 Easier for you to budget, track and control your travel expense
Foreign Currency: Foreign Currency is issued to customers travelling to another

country for leisure, business, education or any other purpose. According to FEMA
guidelines, the maximum amount of currency that can be availed of for any
purpose of travel is the equivalent of USD 3,000 We buy and sell most currencies,
so wherever you are travelling, don't think twice before visiting ICICI Bank for
your Forex needs.
8.7 . PRODUCT PROFILE
Personal Banking
 Deposits
 Loans
 Cards
 Investments
 Insurance
 Demat Services
 Wealth Management
NRI Banking
 Money Transfer
 Bank Accounts

 Investments
 Property Solutions
 Insurance
 Loans
Business Banking
 Corporate Net Banking

 Cash Management
 Trade Services
 FXOnline
 SME Services
 Online Taxes
 Custodial Services
ICICI offers Corporate and Retail Internet Banking Products and Other Value
Added Services-:
 Balance enquiry and statement
 Transfer fund online
 Card to card fund transfer
 Use debit card online
 Prepaid mobile recharge
 Subscribe for mobile banking
 Link bank account to ATM
 Lock / activate debit cards /ATM
 Request a cheque book
 Stop payment

8.8 . PROCEDURE FOR OPENING AN E-BANKING A/C IN ICICI

BANK
ICICI Bank Online Banking Services provide the largest private bank in India right
here at your desktops. Banking becomes a pleasure as the transactions and services
become instant with ICICI Bank online Internet banking. The services provided are
totally secure and unique. These cover online account transactions and operations,
credit card and account applications and payments, share trading and investments
through mutual funds, bill payments, statement generation and a virtual demo of
each service.
Role of customer when using E-banking
 You can access ICICIBank.com only by using your User ID and Password.
During the first login attempt, it is mandatory to change both passwords -
login and transaction – which would have been mailed to you by the bank.
 If you forget your password, you will have written to us using the "Email
Us" option. The Bank will then issue a new password and send it to your
mailing address as per our records. Kindly check with your branch that this
address is updated.
 Make sure no one can see the account login name or password you are
entering when you log on to ICICIBank.com.
 Logout of ICICIBank.com before moving on to other Websites.
 Before leaving the PC please "close" the browser.
 Do not write your ICICIBank.com login name or password anywhere.
 Do not leave your login name and password such that someone sitting at
your computer could see them.

 Never reveal your ICICIBank.com login name and password to anyone (no
representative of ICICI Bank will ever ask you for your ICICIBank.com
password).
 Notify ICICI Bank immediately if you notice any unusual account activity.
 Keep all documents that include your account information in a secure
location.
 When you login you can view the date and time of your last log in.

9. OBJECTIVE OF THE PROJECT
 To gain the knowledge of products and services offered by SBI and ICICI
Bank respectively.
 To identify the perception of consumer about their banks with comparison to
other banks.
 To identify the perception of consumers about E-banking offered by SBI and
ICICI Bank.
 To know the preferences of consumers upon public sector bank and private
sector bank.
 Recommendations to increase customer satisfaction level.
Because of the following reasons, I prefer this project work to get the
knowledge of the banking system.
 Banking is an essential industry.
 It is where we often wind up when we are seeking a problem in financial
crisis and money related query.
 Banking is one of the most regulated businesses in the world.
 Banks remain important source for career opportunities for people.
 It is vital system for developing economy for the nation.
 Banks can play a dynamic role in delivery and purchase of consumer
durables.

10.KEY RESPONSIBILITIES
 Data collection
 Data validation
 Data compilation
 Data Analysis
 Learn and understand customer-client relationship
10.1. STAGES OF THE PROJECT

There are multiple Stages of project which are explained as follows:
 Firstly, the main task is to collect data from the respondent through personal
interviews, Questionnaire, Internet, Journals of Axis Bank.
 After collecting data the next step is to validate the data. The fields’that were
left out or missing were checked for the errors.
 The next step is to complete data. The data collected in the form of
questionnaire was directly entered in to the excel sheets.
 Surveying with the help of questionnaire and the gathering the required
information.
 Data analysis is also one of the stages. Analysis of data is a process of
inspecting, clearing, transforming and modeling data with the goal of
highlighting useful information, suggesting conclusion and recommendation.

11.RESEARCH METHODOLOGY
11.1. MEANING
Research Methodology is a way to systematically study & solve the research
problems. If a researcher wants to claim his study as a good study, he must clearly
state the methodology adopted in conducting the research so that it may be judged
by the reader weather the methodology of work done is sound or not.
The Research Methodology here includes:-
1. Research design
2. Sampling design
3. Data collection method
4. Analysis and interpretation of Data
11.2. RESEARCH DESIGN
The present study is descriptive in nature, as it seeks to describe ideas and insight
and to bring out new relationships. Research design is flexible enough to provide
opportunity for considering different aspects of problems under study. It helps in
bringing into focus some inherent weakness in enterprise regarding which in depth
study can be conducted by management.
Thetype of research design used by me is Qualitative research here I focused on
the understanding & expectations of the respondents. A major chunk of my
research was based on the conclusive research design.
11.3. SAMPLING DESIGN
A ‘sample design’s a definite plan for obtaining a sample from a given population.
It refers to the technique or the procedure the researcher would adopt in selecting

items for the sample. The corporate sea being very fast, it becomes impossible
constraints. Therefore, the study has been narrowed down to a represented sample
to make the study more manageable.
 Sampling Method Adopted
In this study I have applied Non Random Sampling Technique. In this sampling I
have asked them that in which bank do they have an account and do they use
online banking and then I made them to fill the questionnaire.
 Sample Size
The sample size of my project is limited to 60 only.
11.4. DATA COLLECTION METHOD
As the primary sampling unit represents a cluster of units based on geographical

are. The geographical area chosen for individual customer was at New Delhi,
Gurgaon and Noida. It was collected by formal and informal talks and through
filling up the questionnaire prepared.
 Primary Data Collection:
Primary Data is the first hand information collected directly from the respondents.
The data collection for this study was done in the following manner.
 Through personal interviews:
A rigid procedure was followed and we were seeking answers to many

preconceived questions through personal interviews.

 Through questionnaire:
I had prepared a questionnaire for collecting information about the project.

Information to find out the customer services and complaints found out through
Questionnaires.
 Secondary Data Collection:
The data in the secondary source is already published and is in the form of
government publication, census, personnel record, and client history and service
records.
 My source of data collection is also through the secondary data available
from the site of SBI & ICICI banks.

12.DATA ANALYSI AND INTERPRETATIONS (GRAPHICALLY)
Q 1. What is your Age Grp.?
Factors Response
20 – 25 21
26 – 30 25
31 – 35 11
35 Above 3
What is your Age Grp.?

20 – 25 26 – 30 31 – 35 35 Above
3, 5%
11, 18%
21, 35%
25, 42%
INTERPRETATION
Among 60 respondent, 21 (35%) are under 20-25 age grp., 25 (42%) are
under 26-30 age grp., 11 (18%) are under 31-35 age grp., 21 (35%) are above
35 age grp.

Q 2. What is your Occupation?
Factors Response
Business 7
Govt. Employee 9
Pvt. Employee 31
Student 5
Professionals 8
What is your Occupation?

Business Govt. Employee Pvt. Employee Student Professionals
8, 13% 7, 12%
5, 8%
9, 15%
31, 52%
INTERPRETATION
Among 60 respondent, 7 (12%) are Businessman, 9 (15%) are Govt.
Employee,31 (52%) are Pvt. Employee, 5 (8%) are Student and 8(13%) are
Professionals.

Q 3. Which bank do you have an account?
SBI 23 ICICI 37
Which bank do you have an account?

SBI ICICI
23, 38%
37, 62%
INTERPRETATION
Among 60 respondents, 23 (38%) respondents have an account in SBI and 37
(62%) respondents have an account in ICICI Bank.

Q 4. Which type of account you are having?
Factors SBI ICICI

Savings 17 21
Current 1 0
Demat 5 16
Which type of account you are having?

SBI ICICI
21
17 16
5
1 0
Savings Current Demat
INTERPRETATION
Among 60 respondents, 17 respondents have Savings Accounts in SBI and
21 respondents have Savings Account in ICICI Bank, 1 respondent have
Current Account in SBI and no one has Current Account in ICICI Bank, and
5 respondents have Demat Account in SBI and 16 respondents have Demat
Account in ICICI Bank.

Q 5. Are you aware of E-banking?
Factors SBI ICICI

Yes 20 37
No 3 0
Are you aware of E-banking?

Yes No
ICICI 37 0
SBI 20 3
INTERPRETATION
Among 23 respondents from the total 60 respondents who has an account in
SBI, 20 respondents are aware of the E-banking facilities offered by SBI and
3 are not, and among 37 respondents from the total 60 respondents who has
an account in ICICI Bank, all the respondents i.e. 37 respondents are aware
of the E-banking facilities offered by ICICI Bank.

Q 6. Du you use E-banking?
Factors SBI ICICI

Yes 17 25
No 3 12
Du you use E-banking?

Yes No
ICICI 25 12
SBI 17 3
INTERPRETATION
Among 20 respondents from the total 23 respondents who are aware of the E-
banking facilities offered by SBI, 17 respondents uses E-banking and 3 don’t
use E-banking, and among 37 respondents who all are aware of the E-
banking facilities offered by ICICI Bank, 25 respondents uses E-banking and
12 respondents don’t use E-banking offered by ICICI Bank.

Q 7. How you induced to the E-banking services?
Factors SBI ICICI

Easy & Quick 14 15
Advertisement 1 4
Brand Name 0 2
Reference 2 4
How you induced to the E-banking

services?
SBI ICICI
15
14
4 4
2 2
1
0
Easy & Quick Advertisement Brand Name Reference
INTERPRETATION
Among 17 respondents from the total 20 respondents who usesE-banking
facilities offered by SBI, 18 respondents uses it because it is Easy &Quick,
1respondent uses because of Advertisement, no one uses it because its Brand
Name and 2 respondents uses it due to reference from others, where as
among 25 respondents from the 37 respondents who uses E-banking facilities
offered by ICICI Bank, 15 respondents uses it because it is Easy & Quick, 4
respondents uses it because of Advertisement, 2 respondents uses it because
its Brand Name and 4 respondents uses it due to reference from others.

Q 8. How many times (within 10 days)you do transaction through E-

banking?
No of Transactions SBI ICICI

1 3 8
2 5 9
3 6 3
More than 3 3 5
How many times (within 10 days) you do

transaction through E-banking?
10
9
8
7
6
5
4
3
2
1
0
1 2 3 More than 3
SBI ICICI
INTERPRETATION
Among 17 respondents from the total 20 respondents who uses E-banking of
SBI, 3 do transaction for 1 time, 5 do transaction for 2 times, 6 do transaction
for 3 times and 3 do transaction for more than 3 times, where as among 25
respondents from the 37 respondents who uses E-banking of ICICI Bank, 8
do transaction for 1 time, 9 do transaction for 2 times, 3 do transaction for 3
times and 5 do transaction for more than 3 times.

Q 9. What is your purpose of using E-banking?
Factors SBI ICICI

Online Fund Transfer 5 7
Bill Payment 4 6
Account Information 5 5
Online Recharge 3 7
What is your purpose of using E-

banking?
SBI ICICI
7 7
6
5 5 5
4
3
Online Fund Bill Payment Account Online

Transfer Information Recharge
INTERPRETATION
facilities offered by SBI, 5 respondents uses it for Online Fund transfer, 4
respondents uses it for Bill Payment, 5 respondents uses it for Account
Information and 3 respondents uses it for Online Recharge, where as among
25 respondents from the 37 respondents who uses E-banking facilities
offered by ICICI Bank, 7 respondents uses it for Online Fund transfer, 6
respondents uses it for Bill Payment, 5 respondents uses it for Account
Information and 7 respondents uses it for Online Recharge.

Q 10. How much you are satisfied with your E-banking facilities?
Factors SBI ICICI

Not Satisfied 0 0
Less Satisfied 2 2
Satisfied 3 6
More Satisfied 5 10
Very Satisfied 7 7
How much you are satisfied with

your E-banking facilities?
SBI ICICI
10
7 7
6
5
3
2 2
0 0
Not Less Satisfied More Very

Satisfied Satisfied Satisfied Satisfied
INTERPRETATION
facilities offered by SBI, none of them are Not Satisfied, 2 respondents are
Less Satisfied, 3 respondents are Satisfied, 5 respondents are More Satisfied
and 7 respondents are Very Satisfied, where as among 25 respondents from
the 37 respondents who uses E-banking facilities offered by ICICI Bank,
none of them are Not Satisfied, 2 respondents are Less Satisfied, 6
respondents are Satisfied, 10 respondents are More Satisfied and 7
respondents are Very Satisfied.

13. FINDINGS
 In the users ratio ICICI Bank has less number of customers of E-banking
account than the SBI Bank.
 Most of the people have their accounts in ICICI Bank compared to SBI.
 The services used by most of the customers are checking the current balance
of their account, online recharge, online fund transfer and bill payment.
 Most of the people feel safe while disclosing their details on net.
 Almost all the people are aware of the E-banking facilities offered by
different banks.
 Most of the people uses E-banking on regular basis.
 The most important factor that the people consider while opening an online
bank account is convenience & easy and quick.
 The best e-bank service is provided by the SBI Bank.
 The people who works in private sector organization, uses E-banking the
most, and they prefers ICICI Bank E-banking Services
 Most of the respondents are More Satisfied with the E-banking System of
SBI and ICICI Bank.

14. MAJOR LEARNINGS
 Knowledge regarding the basic system of E-banking.
 Knowledge regarding preferences by the customers.
 Procedures of E-banking System.
 Facilities of E-banking System.
 Do & Don’s regarding E-banking.
 How to use E-banking.
 Terms & Conditions involving E-banking.
 Knowledge and awareness about company’s product and services, industry,

competitors etc.
 Types of accounts both the bank offers and its features.
 Money transfer mechanisms such as RTGS (Real Time Gross Settlement)

and NEFT (National Electronic Funds Transfer).
 Communication while filling up the questionnaires dealing with different

people for getting the information.

15. LIMITATIONS AND CONSTRAINTS FACED

 Time Limitation.
 Though every – “precaution has taken due to large data and complex
calculations there may be chances of error.
 Some of the person was not so responsive.
 Possibility of error in data collection.
 Possibility of error in analysis of data due to small sample size.
 Geographical Locations.
 Sample size was limited to 60 respondents only and it may not adequately
represent the whole customers.
 It was tough to get of Questionnaire filled as people avoid due to lack of

time.

16. RECOMMENDATIONS & SUGGESTIONS
 The banks should advertise more of the E-banking services.
 They should reduce their service charge so that more number of customers
can use it.
 ICICI Bank should know the reason that why its e-bank is not progressing.
 There should be customer satisfaction by providing plans on E-banking

services.

17.CONCLUSION
E-banking is a global component in the economy. The role of banks has been and
continues to be shaped by a number of mega trend the globalization of financial
markets, the rise of non bank competitors, the ongoing evolution and
implementation of new technologies, and deregulation and disintermediation (i.e.,
the movement away from the middleman role played by banks between depositors
and lenders).Without a sound and effective banking system in India it cannot have
a healthy economy. The banking system of India should not only be hassle free but
it should be able to meet new challenges posed by the technology and any other
external and internal factors.
The purpose of this report was to provide a straightforward approach to understand
the E-banking services provided by the two banks and how they are different from
each other which make one bank the best from the other. An effort is made to
understand the expectations of the customers with the two banks.
Atlast I want to conclude that the best E-banking service is provided by the SBI
Bank while comparing it with the ICICI Bank. That means the public sector bank
is progressing thanthe private sector bank. This is a great achievement for the bank
and for the nation. The respondents took keen interest in filling the questionnaires
and made my research fruitful. Banks should also look for increasing their online
services.

18.BIBLIOGRAPHY
Books:
1. E-banking in India
2. Money & Banking
Internet sites
 www.sbibank.com
 www.icicibank.com
 www.wikipedia.com
 www.ehow.com
 www.nseindia.com
 www.moneycontrol.com
 www.indianbank.net

ANNEXURE

QUEATIONNAIRE
Name:-
Address:-
Phone No:- Email -
Q 1. What is your Age Grp.?
Factors Response
20 – 25
26 – 30
31 – 35
35 Above
Q 2. What is your Occupation?
Factors Response
Business
Govt. Employee
Pvt. Employee
Student
Professionals
Q 3. Which bank do you have an account?
SBI ICICI Bank
Q 4. Which Type of account you are having?
Factors SBI ICICI
Savings
Current
Demat
Q 5. Are you aware of E-Banking?
Factors SBI ICICI
Yes
No
Q 6. Du you use E-Banking?
Factors SBI ICICI
Yes
No

Q 7. How you induced to the E-Banking services?

Factors SBI ICICI
Easy & Quick
Advertisement
Brand Name
Reference
Q 8. How many times (within 10 days) you do transaction through E-
Banking?
No of Transactions SBI ICICI
1
2
3
4
5
More than 5
Q 9. What is your purpose of using E-Banking?
Factors SBI ICICI
Online Fund Transfer
Bill Payment
Account Information
Online Recharge
Q 10. How much you are satisfied with your E-Banking facilities?
Factors SBI ICICI
Not Satisfied
Less Satisfied
Satisfied
More Satisfied
Very Satisfied
Your suggestions, if any, for improving customer services at online.
………………………………………………………………………………………………………
………………………………………………………………………………………………………
……………………………………………….
Thank You,
We Value Your Response

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PROJECT REPORT

COMPETITIVE ANALYSIS OF ONLINE BANKING

In Partial fulfillment for the award of the degree

New Delhi Institute of Management

In Partial fulfillment for the award of the degree

New Delhi Institute of Management

Under the Supervision

Submitted By: Submitted to:

New Delhi Institute of Management

I, Amlan Kumar Mukherjee, student of New Delhi Institute of Management,

Date of project submission: ____________________.

(Amlan Kumar Mukherjee)

Faculty Mentor’s Comments:

(Prof. Mr. Vineet Vishnu)

New Delhi Institute of Management

Today’s business environment demands that managers possess a wide range of

New Delhi Institute of Management

A heartfelt thanks to the many respondents surveyed whose ideas, critical

“With all sincere Regards and Thanks”

Amlan Kumar Mukherjee.

New Delhi Institute of Management

New Delhi Institute of Management

10.1 Stages of the Project 43

New Delhi Institute of Management

New Delhi Institute of Management Page 1

Today’s business environment demands that every businessman possess a wide

Satisfaction is the persons feeling of pleasure or disappointment resulting from

New Delhi Institute of Management Page 2

• A customer is the most important person ever in any company.

• A customer never depends on company, but the company depends on him.

• A customer is the person who brings company his wants.

• A customer is not an interruption to marketers work; he is the purpose of it.

New Delhi Institute of Management Page 3

3.1. BANKING IN INDIA

New Delhi Institute of Management Page 4

· PHASE I - Early phase from 1786 to 1969 of Indian Banks

New Delhi Institute of Management Page 6

The East India Company established

New Delhi Institute of Management Page 7

· 1949: Enactment of Banking Regulation Act.

New Delhi Institute of Management Page 8

3.5. TYPES OF BANK

3.5.1 Nationalized Banks in India

New Delhi Institute of Management Page 11

“Online Banking – A Global Way to Bank!”

New Delhi Institute of Management Page 12

 Exceptional rates on Savings, CDs, and IRAs

New Delhi Institute of Management Page 13

 Quality customer service with personal attention

Electronic Banking is an umbrella term for the process by which a customer

New Delhi Institute of Management Page 14

4.1. ADVANTAGES OF INTERNET BANKING FACILITY

4.2. DRIVERS OF CHANGE

New Delhi Institute of Management Page 15

Advantages previously held by large financial institutions have shrunk

 Improve customer access

4.3. EMERGING CHALLENGES