E-Banking Services With Special Reference To SBI and ICICI: List of Content

E-Banking services with special reference to SBI and ICICI
Sl. No Title
I Chapter 1: Research design
1.1 Introduction
1.2 Statement of the problem
1.3 Objectives of the study
1.4 Scope of the study
1.5 Methods of data collection
1.6 Methodology
1.7 Limitations of the study
II Chapter 2: Theoretical background of the study

2.1 Introduction
2.2 Meaning and Definition
2.3 Features of E- banking
2.4 Advantages of E – banking
2.5 Structure of Indian banking system
2.6 Computerized e- banking services
2.7 E- banking growing powerful
III Chapter 3: profile of SBI and ICICI bank

3.1 profile of SBI and ICICI bank
IV Chapter 4: Data Analysis & Interpretation

4.1 Introduction
4.2 data analysis and Interpretation
V Chapter 5: Findings, Suggestions and Conclusion

Bibliography
Annexure
LIST OF CONTENT
VSK UNIVERSITY BALLARI Page 1

CHAPTER -1
RESEARCH DESIGN
1.1 Introduction:
The banking scenario in India in the post liberalization and deregulated environment
has witnessed sweeping changes. The tremendous advances in technology and the aggressive
information technology had brought in a paradigm Shift in banking operations. Today,
banking is more customer-centric. Banks are increasingly focusing on the premise that
customers choose their service provider who differentiates himself from the others of the
class with his quick and efficient service. For customers, it is the realization of their
‘Anywhere, Anytime, Anyway’ banking dream. This has prompted the banks to embrace
technology to meet the increasing customer satisfaction.
The upsurge in Information communication Technology [ITC] in the present world

has affected the delivery of service in most of not all organization. The commercial Bank like
other service industries has its own share of ITC influence. The study examines the impact of
Electronic Banking on service delivery to customers on commercial Bank. The banking
system has a significant role to play in the rapid growth of the economy through planned
efforts. By institutionalizing savings and channeling resources in the well determined
direction in consonance with the objectives and priorities laid down in the plans, the banking
system can influence the pace and pattern of growth. The first plan emphasized the fact that
fact the banking system had to be fitted into the scheme of development to make the process
of saving and their utilization “Socially purposive”
Internet banking system is a system that has been developed in order to help clients
with the daily day-to-day transaction internet banking system means that clients can now do
banking at the leisure of their home. Also know as online banking the system allows both
transactional and non- transactional features. Online banking or internet banking allow
customers to conduct financial transactions on a secure website operated by the retail or
virtual bank
In the past , customer ‘ demand for banking services was driven basically by safety of
their money as well as interest accruing from such savings. However, the present day
customer’s demand has shifted from just safety of money to how banks deliver their services.
The reason is that the present day customer requires efficient, fast and convenient services.

The financial market has become so competitive in recent times due largely to the
liberalization of the banking industry. Thus the study seeks to investigate the impact of E –
banking on services delivered to customer of ICICI bank ltd. Further the study investigated
the relationship or impact on service delivery and customer satisfaction considering the
electronic banking services available in ICICI Bank ltd as well as SBI Bank.
1.2 Statement of the problem:
In the past, customer ’ demand for banking services was driven basically by safety of
their money as well as interest accruing from such savings. However, the present day
customers’ demand has shifted from just safety of money to how banks deliver their services.
The reason is that the present day customer requires efficient, fast and convenient services.
The financial market has become so competitive in recent times due largely to the
liberalization of the banking industry. Also due to information communication technology
(ICT) advancement, the bank has cased the opportunity to automate its processes and
introduce E-Banking products. Although the banks own business culture has seen some
changes, it appears long queues and system failure still exists and remains a major issue to be
resolved.
Thus the study seeks to investigate the impact of E-Banking on services delivered to
customer of ICICI bank ltd. Further the study investigated the relationship or impact on
service delivery and customer satisfaction considering the electronic banking services
available in ICICI Bank ltd as well as SBI Bank.
1.3 Objectives of the study:
 To measure the customer satisfaction in identifying the key action that help to retain
the customer for long term
 To know which age group of customer is using different E- banking facilities
 To know the cause why customer are not using internet banking
 To get various solution for drawback in net banking.
 To make a comparative study between SBI and ICICI banks customer satisfaction
towards selected I.T. based products and services

 To offer suitable suggestions on the basis of study

 Bank also provide balance alerts
 There are no extra charges and there is improvement in customer access
1.4 SCOPE OF THE STUDY:

 The study covers the services providers and users of bank
 The study is confined to the region
 The study has put forward the customers as well as acceptability behavior for the
services
 The scope of study is to find out the customer satisfaction
 This study was covered E- Banking services sectors
 To make a comparative analysis of customers satisfaction with reference to e banking
services among the selected banks
1.5 Methods of Data collection:
This study is based on both primary and secondary data.
 Primary Data :
Data has been collected by structured questionnaire. This questionnaire
circulated among 30 respondents on convenience basis. 15 questionnaire each has
been given to SBI and ICICI Banks customers .
 Secondary Data:
In the study secondary data were collected from various magazines, text books were
referred to get an insight into the subject matter of customer satisfaction and retention.
Information was collected from various web sites on e-banking services and all the sources of
information are presented in bibliography.
1.6 Methodology:
The considerations which enter into making decision regarding what, where, when,
how much, by what means constitute a plan of study. The main aim of the study is to find out
the Customer satisfaction with e-banking services of SBI & ICICI Bank. The study is

descriptive in nature. Surveys are the best-suited methods for descriptive study, so survey
method is used for the study.
Taking into account the survey was planned in the e-banking services. In these customers
there are substantial number of customers for E-Banking by which we can get the idea about
the customer psychology, perception and customer satisfaction.
Method has been selected by the study. And, the same has been gathered from 30
respondents, observation method and interview schedules have also been adopted satisfaction
of necessary.
1.7 Limitations of the study:
 It was difficult to know whether the respondents are truly given the exact information
Customer preferences and opinions are supposed to change from time to time
 Some respondents were hesitating to give true responses
 The data was collected within one month time period.

CHAPTER- 2
THEORETICAL BACKGROUND OF THE STUDY
2.1 Introduction
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 ('Banking Companies (Acquisition and
Transfer of Undertakings) Ordinance, 1969')) and nationalised the 14 largest commercial
banks with effect from the midnight of July 19, 1969. These banks contained 85 percent of
bank deposits in the country. Jayaprakash Narayan, a national leader of India, described the
step as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance,
the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking)
Bill, and it received the presidential approval on 9 August 1969. A second dose of
nationalization of 6 more commercial banks followed in 1980. The stated reason for the
nationalization was to give the government more control of credit delivery. With the second
dose of nationalization, the Government of India controlled around 91% of the banking
business of India. Later on, in the year 1993, the government merged New Bank of India with
Punjab National Bank. It was the only merger between nationalized banks and resulted in the
reduction of the number of nationalised banks from 20 to 19. After this, until the 1990, the
nationalised banks grew at a pace of around 4%, closer to the average growth rate of the
Indian economy
2.2 Meaning:
E-bank is electronic bank that provides the financial service for the individual
client by means of Internet. Online banking is the performance of banking activities via the
Internet. Online banking is also known as “Internet banking” or “Web banking”. A good
online bank will offer customers just about every service traditionally available through a
local branch, including accepting deposits, paying interest on savings and providing an online
bill payment system.
Definition of E-banking:-
E-banking is defined as the automated delivery of new and traditional banking
products and services directly to customers through electronic institution customer,
individuals or business, or obtains information on financial products and services through a
pussblic or private networking, including the internet. Customers access e-banking services
using an intelligent electronic device, such as a personal computer (PC), personal digital
assistant (PDA) , automated teller machine(ATM), Kiosk, or touch Tone telephone . While
the risks and controls are similar for the various e-banking access channels, this focuses due
to the Internets widely accessible public network.
2.3 Features of e-banking:-

Customer must go through a series of security steps in order to log on. Such as PIN
number. Password, position of random characters in a phrase, many be a random number
entry from hand held card and so on.
 Customer can see detail of their accounts online
 Customer can select an account and see the cash balance of each of their accounts and
the available money on each account.
 Can view their directs debits
 Can set up standing orders
 Can view historical statement by week/month for the previous six months
 Will automatically log customer out if no action for a short period.
 Message facility to communicate with bank about account or security issues.
Customer can get response usually from bank within 24 hours.
2.4Advantages of E-banking:-
 E-banking gives more interest rates and saves lot of expenses

 We carry out all banking transaction at our own c0nvenience

 Lot of precious time and the paper work is saved
 Banking also provide balance alerts
 There are no extra charges and there is improvement in customer access
2.5 Structure of Indian Banking System:

The Indian banking system is regulated by the central bank, viz,. Reserve bank of
India (RBI). Under the control of RBI, There are scheduled and non-schedule commercial
and cooperative banks. Scheduled banks consist of commercial and cooperative banks.
Schedule commercial banks consist of public, private. Foreign and regional rural banks.
Public sector banks consist of SBI and its associates, Nationalized banks and other public
sector banks Private sector banks consist of old generation and new generation banks.
Scheduled cooperative banks consist of urban and state cooperative banks.
STRUCTURE OF INDIAN BANKING
New Generation
Banks
 Online Banking in India:-

Over the last decade India has been one of the fastest adopters of information
technology, particularly because of its capability to provide software solutions to
organizations around the world. This capability has provided a tremendous impetus to the
domestic banking industry in India to deploy the latest in technology, particularly in the
online banking and e-commerce arenas.
The Reserve Bank of India constituted a working group on online Bankin . The group divided
the internet banking products in India into 3 types based on the level of access granted, they
are:
 Information only System:

 General purpose information like interest rates branch location, bank
products and their features, loan and deposit calculation are provided
in the banks, website. Here 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 system of the bank through internet.
 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 ‘ready 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 system cannot directly access
through the interest.
 Fully Electronic Transactional System:
 This system allows bi-directional capabilities. Transaction is submitted
by the customer for online update. This system is linked over secure
infrastructure. It comprises technology covering computerization,
networking and security, inter-bank payment gateway and legal
infrastructure

Any common citizen of India can avail following services using online
banking:
 Bill payment service
 Funds transfer
 Credit/Debit cards
 Railway ticket booking
 Investing through internet banking
 Shopping.
 Mobile recharge.
 CLASSIFICATION OF PRODUCTS AND SERVICES OF E-BANK:

Banking products can be divided into two types. Those are Traditional and I.T. based
products. Traditional products also know as mass banking by products. Traditional products
consist of Savings Deposits Account, Current Account, Fixed Deposit Account Recurring
Deposit Account, Overdraft Account, Loan Account, PPF Account. All these components of
traditional product is operated through channels such as internet, phone services, ATM and
Core banking technology as a transformation from traditional banking to technological
banking. The remaining Informational Technology based products and services which
customers extract through the same channels are as follows:
1. Term Deposits,
2. Special Term Deposits,
3. Tax Saving Scheme,
4. MODS (Multi Option Deposit Scheme),
5. Flexi Deposit Scheme,
6. Basic Banking – No Frills Account and
7. Premium Savings Account.
I.T. based products & services and their working Mechanism:

 E-Rail (Electronic rail booking):

 Under this scheme, an individual can book their railway ticket online.
All internet banking customers can use this facility. The payment
amount will include ticket fare including reservation charges, courier
charges and bank service fee. Customer’s account will be debited to
the extent of the payment as soon as the payment option is selected by
the customer over the on-line. The ticket may be delivered or collected
by the customer from the reservation counter.
 NEFT:
 It is another electronic payment system. The payment instructions
between the banks is processed and settled at fixed time during the
day. There is no limit for the transactions value. Both systems work on
all days except on Sundays and common National holidays across the
states.
 E-Pay:
 This system will let you pay your telephone, mobile, electricity,
insurance and credit card bills electronically over the on line bank
website.
 On-Line Trading Services:

 Through the internet banking a customer can enter into a worldwide
online share trading and transaction of products worldwide.
 The following are services provided through ATMs by the banks:

 ATM credit card and Debit card acceptance
 ATM card issue duration
 Cash Withdrawal Duration
 Balance Enquiry
 Receipt Of Mini Statement

 Maximum limit per withdrawal

 ATM locations
 Guidelines for card usage
 e bank. MCC can be issued in cheque operated accounts (SB and current) in addition
to normal cheque books. The MCC facility is to be used only for genuine
transactions / bonafide remittances. No cash payments will be made to this and parties
at other branches. Charges for card usage
 Lost card request to make Hot card
 Replacement of Lost / damaged ATM card
 Validity of ATM card
 Maintenance of secrecy of PIN
 Providing Tips for taking precautions about safe keeping of card
 Change of PIN as and when required.
 Smart Card:
It is also considered as that of any other credit card. The only difference is
that, it carries a chip embedded on the reverse below the magnetic strips. The
purpose of the smart card is to replace the multiple numbers of cards with one
or two storable information.
 Broking Services:
This is the service provided to the investors to carryout broking
transactions with confidence. The retail broking network helps investors to
locate the branches to whom they should approach for their broking needs.
 RBIEFT:
Refers to Inter-bank electronic funds transfer facility of the Reserve Bank
of India (RBI – EFT) which is (technology) available in the branches to
clear the financial settlement between the branches and banks, within a
real time.

 Safe Deposit Locker Remittance:

Online banking helps the customers to give standing instructions to their
bank, towards the remittance of rent for the safe deposit locker facility
availed.
 Demat Services:
Demat service facilitates to maintain security balance, in electronic form.
This service ensures free of transferability of securities with speed
accuracy and security. It also provides service towards the conversion of
electronic balances to physical (share certificate) form. It facilitates faster
and direct credit or security balances in DP (Depository) account on
allotment through public issue of companies. Both buying and selling of
securities will take place through the Demat account.
 Gift Cards:
The advancement of bank introduces gift cheques, allowing the beneficiary to use the
money according to their wishes. These cheques are accepted at the issuing bank
branches only. But the gift card issued in association with visa international gives the
comfort of convenience and acceptability. It is a prepaid plastic card supported by
magnetic strip based technology. It is a perfect substitute for gift vouchers. It is usable
at all visa enabled merchant establishments at POS (Point of Scale) by signature.
 Multi City Cheques (MCC):

It is a cheque, that can be written by the customer in favour of his client
and is payable at par, at all branches of th
 Mobile Phone Banking:

This service is available on all phones in a Wireless Application Protocol
(WAP) over Unstructured Supplementary Service Data (USSD) and over
SMS. The following services are provided to the customers.

 E-invest:
o Bank has introduced this supplementary process for applying in the public
issues. Bank will mark a lien on the deposit account of the e-investor to the
extent of the application money. Under this system customer funds will
continue earning interest during the application processing period.
 Investment Services / Cash Management Services:

The above service refers to the financial advice offered by banks to their customers. This
service is considered as high value and high specific oriented. The advisor (bank) has to
gather all information necessary and provide all such information to their customers, who
need the banker’s advice to take a decision on their investment. It is necessary to note that the
advisor must provide a customised recommendation from the information collected.
2.6 COMPUTERISED E-SERVICES:

Nowadays customers are viewed by the banks as financial partners rather than custodian of
their customers’ money. In order to provide better services to their customers both private
and public sector banks introduced a high level of computerization to insure efficient
services. The high speed computer mediated, communication networks set up helps to reduce
to communication cycle time. As a result, employees could attend to the customer proposal
and problems, while computer processes all the transactions and displays the options and
assists the employees to provide customized solutions. The new technology has radically
altered the traditional ways of doing banking business. Increasingly, the customer in retail
sector is doing business with their banks.
The payment system is effectively carried out through the use of E-payment technology
which allows customers to access banking services electronically, to pay various bills
towards, telephone charges, electricity, and mobile. It refers to electronic services through the
computers that are made available to the customers for pass book entries, electronic clearing
services. There is no uniform standard for presentment and payment of bills under this
system, getting of paper and plastic and typing to replace it by electrons. By using the
electronic device the banks can extend the following retail services to their customers. The
improved availability of customer data will help to speed transaction processing cycle and
automate the more time consuming customer interactions; including form completion and

other cumbersome application processes. Extending the banking services infrastructure into
these e-financing domains will also help to keep customers satisfied. The following are the
practices adopted to provide services through computers with banks:
Computerized Services at Branch Level:

 The Payment System
a. Utility Bills Payments
b. Passbook entries
c. Electronic Cheque Clearances
d. FD receipts issue
e. ATM statement availability
f. Withdrawal of Cash
g. MICR clearing system
 The Settlement System

a. Electronic Debit Clearing
b. Electronic Credit Clearing
c. Electronic Documents Management
d. RTGS (Real Time Gross Settlement)
e. Credit card Payments
f. Debit Card payments
g. Smart cards
 Centralized funds management system
a. 24 hrs banking service
b. Ac to AC transfer of funds
c. Branch to Branch transfer of Funds
d. Bank to Bank transfer of Funds
e. Preparation of vouchers
f. Electronic Funds Transfer

 Structured financial messaging solutions

a. Interactive voice response
b. Telephone banking system
c. Securing message for funds transfer
 Internet system
a. To view accounts
b. Remote banking services
c. EDI (Electronic Data Information) Developments
d. email management
 Debit card management solution (manages the lifecycle of ATMs and

Debit cards):
a. To Get account statements
b. Biometric ATMs for Rural Banks
c. Network based fraud deduction system
 The Settlement System:

 Electronic payment and settlement system:
 The most accepted forms of payment for settling transactions are
cheques. Through the system of clearing houses, the inter-bank
cheques could be cleared. The service of clearing house is a common
phenomenon, which is provided by RBI in metro cities and the similar
service is provided by other banks in smaller cities. The MICR / OCR
(Magnetic Ink Character / Optic Character Recognition) technology
adoption leads to automate the clearing process.
 MICR / OCR Clearing System:

 The Automated clearing system consists of Magnetic ink and optic ink
character recognition technology MICR technology is used in clearing
of cheques in India. Under this system, the specific types of papers are
processed in a high speed machine and the cheques have two white

bands at the top and at the bottom. These bands carry the details of the
cheque which are enclosed with special magnetic ink. These banks
should be free from any marking or impressions as such. The cheques
should not be folded in the middle and either end should be free from
any tabs.
 Electronic Debit Clearing:

 It is a process through which, a user of the utility services like,
telephones, electricity, gas etc. can make the regular and periodic
payments to the service provider. In order to make the payments easy
the service provider obtains an authorization letter from the user and it
will be submitted to the banker as in the case of normal clearing. Later,
the customer’s account will be debited in the respective branches to the
extent of the amount payable by the customers.
 Credit Clearing System:

 Credit clearing system is applicable where a company is required to
make payments to a large number of shareholder/ investors, periodical
dividend / interest, which are generally of smaller amounts. In this
case, the company prepares a list of customers city-wise, bank wise
and branch wise. The amount is also handed over to the bankers along
with the list. The list is distributed to the various bankers along with
the amount, which is credited to the shareholders account by the
individual bank / branches.
 Real Time Gross Settlement (RTGS):

o RTGS systems are typically electronic systems, using telecommunications
network, which transmit and process information in realtime. As it is a
gross settlement system, transfers are settled individually, that is without
netting debits against credits. It is a real time settlement system, the system
affects final settlement continuously rather than periodically at pre-defined
times provided that the sending bank has sufficient covering balances or
credit.

 2.8 E-BANKING GROWING POWERFUL:

“Banking being highly information – intensive, it is only logical to use IT
as an effective enabler and facilitator for meeting the requirement of banks
and their customers. With the changing lifestyle of customers, they need
new products and convenient delivery channels, which can be provided
only, be enabling technology”
 The tremendous advances in technology and the aggressive infusion of IT had brought
in a paradigm shift in banking operations. For customers, it was the realization of their
‘anywhere, anytime, anyway’ banking dream. For the banks, technology has emerged
as a strategic resource for achieving higher efficiency, control of operations,
productivity and profitability.
 That most ‘brick-and-mortar’ banks are shifting from a ‘product-centric’ model to a

‘customer-centric’ model as they develop their new E-banking capabilities. Banks are
now realizing that Internet banking is most successful if they tailor their websites to
their customers’ needs rather than providing and promoting individual products.
Traditional banks – both in public and private sectors – have been facing constraints
like heavy initial investment, inadequate infrastructure in rural and semi-urban
branches, excess manpower etc., in achieving total bank automation. Also there is the
issue of total business re-engineering, without which the infusion of technology alone
may not yield the required business benefits to banks. Again, it may neither be
required nor viable to cover the large number of small and rural branches in total bank
automation.
The biggest hurdle in popularizing e-banking is the security perception among the
customers. This needs to be addressed by establishing highly secure system of
architecture for the Net-based services.
The terms e-banking refers to a process by which a customer may perform banking
transactions electronically without visiting a brick – and – mortar institution. There
are different forms of e-banking, which can be used interchangeably. They are named

as PC banking (Personal Computer Banking), Internet banking, Virtual banking, On-

line banking, Home banking, Remote electronic banking and Phone banking.
PC banking and Internet or online banking are the most frequently used designations.
These different types of electronic banking are often used interchangeably.
Banks are transforming their websites into full fledged finance portals through which
the banking companies have gained the opportunity to offer personalized services to
their customers on one-to-one basis by means of which banks can build (or develop)
long-term customer relationship E-banking utilized technology to allow bank
customers and other stakeholders to interact and transact with the bank through a
variety of channels such as internet, wireless devices, ATMs and physical branches
technology and the same are used for increased knowledge sharing within the bank
and between the bank and its vendors.
 Benefits to the Organisations:

a. Improve customer access.
b. Facilitate the offering of more services
c. Increase customer loyalty
d. Attract new customers
e. Increase customer satisfaction.
f. Reduction in costs, as the need for physical branches is reduced.
g. Reduction in cost, as the need for manpower is reduced.
h. Transparent and fast response.
 Various Activities under E-Banking and their execution:
1. Pass book entry:

As the pass book is the conclusive evidence of transactions between a banker and
customer, it needs utmost perfection. With the introduction of electronic media, all the entries
in the pass book are carried out by an electronic printer. For this purpose, banks have changed
the account numbers of their customers and the size of pass book. Whenever, a customer
transacts with the banks, his pass book entries will be updated which enable the customer to
know his current balance as on date. Thus, the delay which was very frequently occurring in
manual operations earlier has been overcome. E-banking has also eliminated any arithmetic

mistakes and has ensured accuracy. Most of the banks have an electronic printer connected to
the computer which prints the entries in the pass book.
2. Simultaneous Entry of Transactions:

The foremost advantage of banking operations due to e-banking is evident from the
following – a single transaction of any customer is simultaneously reflected / undertaken at
different points. For example, when a cheque is presented, the entry in the ledger, pass book,
cash book, master register and daily register is entered simultaneously. By this, the bank will
be in a position to know the current position of its customer. Even the bank manager, sitting
in his cabin, can know the current balance of any customer.
This helps in phone-banking also wherein the customers can dial a particular number and
through on-line computer, they can know their current balance position. Current account
holders are more benefited as there will be a number of cheque deposits as well as
withdrawals and up-dating of entries is done accurately.
3. Home Banking:
For the benefit of aged people and for persons living in far-off distances from the
branch, home banking is a big advantage. The customers are given a code number which he
can operate through his personal computer at home and it will activate his account in the
bank. He can give instructions for transfer of money or for payment through his computer
network, thus enabling him to conduct his banking operations by staying at home.
4. MICR Cheques:
The modern banks use MICR cheques, called Magnetic Ink Characteristic
Recognition. These cheques contain a white patch at the bottom in which you have various
numbers given, representing name of the bank, branch and the cheque number. By decoding,
the computer will be able to find out the name and the branch of the bank. When banks send
cheques for clearance at the clearing house, various cheques are fed into the computer which
decodes the MICR cheques and prepares a statement of every bank that has presented
cheques for clearance. Thus, clearing activity is speeded up.

5. Zero System:
Under this system, when all the banks and branches are connected by a network, the
transactions will take place in a much more speedy manner.
Instead of taking cheques for clearance, they may be cleared through the
network itself and the customers are given instantaneous credit for their other bank cheques.
This is possible only due to the network the banking industry enjoys because of the electronic
media.
6. Identification of Customer’s Signature:

In certain countries, it is not merely the specimen signature which is obtained but the
index finger impression of the customer is also taken as part of specimen signature. So, even
if there are two identical signatures, the bankers can match their index finger impressions to
find out the genuineness of the cheque and thus avoid forgery.
7. Transfer of funds through Electronic Clearance System (ECS):

Banks help customers by providing mail transfer and telegraphic transfer by way of
remittance. But these may lead to delay in receipt of funds at the receiving end. But, in e-
banking, we have electronic clearance system which is called ECS. The customer has to
provide a cancelled specimen cheque to the bank along with his signature, which will be used
by the bank for remittance of various purposes, such as telephone charges, insurance
premium etc.
The customer has to simply provide the telephone bills or insurance premium and the bank
will undertake to remit the funds through the electronic clearance system by debiting the
account of the customer. Of late, companies are sending their dividend, warrants and
debenture warrants to lakhs of shareholders through this system.
8. Interbank Transfer, Intercity Transfer and International Transfer:

All these are carried out by a new modern system called SWIFT, i.e. Society for the
Worldwide Interbank Financial Telecommunication. Under this system, funds can be
transferred from any part of the world within 24 hours. The sender will give the code number
of the institution through which the funds will be remitted to the receiver. This process is kept
highly confidential. Hence there is safe remittance.

9. Demat Account:
As the transactions in stock exchanges are carried out through on-line basis, and the
stock exchanges are insisting on dematting of shares, banks are acting as depository agents
and have opened a demat account for their customers. Under this system, the customer will
hand over to the bank the physical form of shares which is held by a shareholding
corporation. The customer is given a personal identification number through which his
transactions are carried out. His sale and purchase of shares are done by bank through demat
account. This prevents bogus and benami transactions and also blank transfer of shares.
10. Debit and Credit Card:

Most of the banks have provided for their customers debit card as well as a credit
card. In debit card, the customer is debited with his transaction immediately and if there is a
credit balance in his account, it will be adjusted towards the debit entry. Otherwise, the bank
will charge interest for outstanding debt. In the case of credit cards, the transactions enjoy a
minimum credit of one month after which the customer has to pay, failing which interest will
be charged on the outstanding balance. All these transactions are done through the electronic
media and the banks prepare the bill at the end of a month and send it to the customer. Thus,
the credit card is not only beneficial to the banker but also to the customer and the seller.
11. Foreign Exchange Transactions:

Banks are able to take advantage of different rates in the foreign exchange markets by
the use of e-banking. Even a very minor change in the foreign exchange rates will enable the
banks to earn profits in Spot market, forward market, future market, option and swap market
transactions.
 CORE BANKING:
“Some of the most common issues around core banking Implementations are
organizational, not technical”.
Core means “Basic”, hence the basic services provided by the internet worked branches of
bank is called “Core Banking”. Core banking is normally defined as the business conducted
by a banking institution with its retail and small business customers. Many banks treat the

retail customers as their core banking customers, and have a separate line of business to
manage small business. Larger businesses are managed via the Corporate Banking division of
the institution. Core banking basically is depositing and lending of money. Nowadays, most
banks use core banking applications to support their operations where CORE stands for
“Centralized Online Real-time Exchange”. This basically means that the entire bank’s
branches access applications from centralized data centres.
Normal core banking functions will include deposit accounts, loans, mortgages and
payments. Banks make these services available across multiple channels like ATMs, Internet
banking, and branches. Core banking solutions are banking applications on a platform
enabling a phased, strategic approach that lets people improve operations, reduce costs, and
prepare for growth. Implementing a modular, component – based enterprise solution ensures
strong integration with your existing technologies. An overall Service – Oriented –
Architecture (SOA) helps banks reduce the risk that can result from multiple data entries and
out-of-date information, increase management approval, and avoid and potential disruption to
business caused by replacing entire systems. Core banking solutions is a new jargon
frequently used in banking circles.
The advancement in technology, especially internet and information technology has led to
new ways of doing business in banking. These technologies have cut down time, working
simultaneously on different issues and increasing efficiency. The platform where
communication technology and information technology are merged to suit core needs of
banking is known as Core banking solutions. Here, computer software is developed to
perform core operation of banking like recording of transactions, passbook maintenance, and
interest calculations on loans and deposits, customer records, balance of payments and
withdrawal. This software is installed at different branches of the bank and then
interconnected by means of communication lines like telephones, satellite, internet, etc. It
allows the user (customers) to operate accounts from any branch if it has installed core
banking solutions. This new platform has changed the way banks are working.

 MOBILE PHONE BANKING:

The governor of the Reserve Bank of India strongly favored the idea of using mobile
phones as instruments for bank account transactions. The integration of existing technologies
like smart card with mobile phones holds exciting promises for the future. With drastic fall in
cell phone tariff and emergence of seamless connectivity between fixed and mobile lines,
mobile banking is set to emerge as one of the most cost-effective delivery channels in the
near future.
According to the new government directive, every PSU is expected to adopt a particular
district for financial inclusion, which means that the respective bank will have to ensure that
all the residents of that area have a bank account. The most efficient and cost-effective way to
do this is by setting up ATMs in mobile banking units, or, ‘Branch on-wheels’. The Bank –
onwheel would carry a rural ATM from village to village. It will be deployed in communities
to eliminate the need for customers to travel long distances to conduct their day-to-day
banking.

CHAPTER- 3
PROFILE OF SBI AND ICICI BANK
The origin of the State Bank of India goes back to the first decade of the nineteenth
century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three
years later the bank received its charter and was re-designed as the Bank of Bengal (2 January
1809). A unique institution, it was the first joint-stock bank of British India sponsored by the
Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1
July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern
banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921.
Primarily Anglo-Indian creations, the three presidency banks came into existence either as a
result of the compulsions of imperial finance or by the felt needs of local European
commerce and were not imposed from outside in an arbitrary manner to modernize India's
economy. Their evolution was, however, shaped by ideas culled from similar developments
in Europe and England, and was influenced by changes occurring in the structure of both the
local trading environment and those in the relations of the Indian economy to the economy of
Europe and the global economic framework.
 MISSION, VISION & VALUES OF SBI BANK:

VISION:
 My SBI.
 My Customer first.
 My SBI: First in customer satisfaction
MISSION:
 We will be prompt, polite and proactive with our customers.
 We will speak the language of young India.
 We will create products and services that help our customers achieve their goals.
 We will go beyond the call of duty to make our customers feel valued.
 We will be of service even in the remotest part of our country.
 We will offer excellence in services to those abroad as much as we do to those in
India.

 We will imbibe state of the art technology to drive excellence.

 VALUES
 We will always be honest, transparent and ethical.
 We will respect our customers and fellow associates.
 We will be knowledge driven.
 We will learn and we will share our learning.
 We will never take the easy way out.
 We will do everything we can to contribute to the community we work in.
 We will nurture pride in India
 SERVICES PROVIDED BY SBI INTERNET BANKING:
ONLINE SBI: State Bank of India is India’s largest bank with a branch network of over
14000 branches and 5 associate banks located even in the remotest parts of India. State Bank
of India (SBI) offers a wide range of banking products and services to corporate and retail
customers. „Online SBI‟ is the Internet banking portal for State Bank of India. The portal
provides anywhere, anytime, online access to accounts for State Bank’s Retail and Corporate
customers. The application is developed using the latest cutting edge technology and tools.
The infrastructure supports unified, secure access to banking services for accounts in over
14,000 branches across India.
RETAIL BANKING:
The Retail banking application is an integration of several functional areas, and

enables customers to:
 Issue Demand Drafts online
 Transfer funds to own and third party accounts
 Credit beneficiary accounts using the VISA Money Transfer, RTGS/NEFT feature
 Generate account statements
 Setup Standing Instructions
 Configure profile settings
 Use e-Tax for online tax payment
o Use e-Pay for automatic bill payments

 Interface with merchants for railway and airline reservations

 Avail DEMAT and IPO services
 CORPORATE BANKING:
The Online SBI corporate banking application provides features to administer and
manage corporate accounts online. The corporate module provides roles such as Regulator,
Admin, Up loader, Transaction Maker, Authorizer, and Auditor. These roles have access to
the following functions:
 Manage users, define rights and transaction rules on corporate accounts

 Access accounts in several branches with a single sign-on mechanism
 Upload files to make bulk transactions to third parties, supplier, vendor and tax
collection authorities.
 Use online transactional features such as fund transfer to own accounts, third party
payments, and draft issues
 Make bill payments over the Internet.
 Authorize, modify, reschedule and cancel transactions, based on rights assigned to the
user
 Generate account statement
 Enquire on transaction details or current balance.
 VALUE ADDED SERVICES:

 Tax payments to central and state governments through site to site integration.
 Supply Chain Finance (e-VFS- Electronic Vendor Finance Scheme)
 Transfer funds to own and third party accounts
 Credit beneficiary accounts using the VISA Money Transfer, RTGS/NEFT feature
 Generate account statements
 Setup Standing Instructions ssss
 Configure profile settings
 Use e-Tax for online tax payment
 Use e-Pay for automatic bill payments
 Interface with merchants for railway and airline reservations
 Avail DEMAT and IPO services.

Products and services

E-Ticketing SBI E-Tax
Bill Payment RTGS/NEFT
E-Payment Fund Transfer
Third Party Transfer Demand Draft
Cheque Book Request Account Opening Request
Account Statement Transaction Enquiry
Demat Account Statement Donation
 BANKING SUBSIDIARIES:
ASSOCIATE BANKS:
State Bank of India has the following five Associate Banks (ABs) with controlling interest
ranging from 75.07% to 100%.
 State Bank of Bikaner and Jaipur (SBBJ)
 State Bank of Hyderabad (SBH)
 State Bank of Mysore (SBM)
 State Bank of Patiala (SBP)
 State Bank of Travancore (SBT)
 Internet banking at State Bank of India:
In early 1990’s more than 7000 branches were using traditional manual procedures.
These manual procedures were inherited from the Imperial Bank. Traditional procedures
were evolved over decades Very few changes were brought in those procedures as per the
need
time. In that time, mainframe or mini computers were used for MIS, RECONCILLATION &
FUND SETTLEMENT PROCESS.
 BILL PAYMENT:

A simple and convenient service for viewing and paying bills online:
 No more late payments
 No more queues
 No more hassles of depositing cheques
Using the bill payment view and pay various bills online, directly from your SBI account.
Pay telephone, electricity, insurance, credit cards and other bills from the comfort of your
house or office, 24 hours a day, 365 days a year. Simply logon to http://www.onlinesbi.com/
with credentials and register the biller to which you want to pay, with all the bill details. Once
the bill is uploaded by the biller, you can make payment online. Auto Pay instructions with an
upper limit to ensure that your bills are paid automatically whenever they are due. The upper
limit ensures that only bills within the specified limit are paid automatically, thereby
providing customers complete control over these payments. The e-PAY service is available in
various cities across the country and you can now make payments to several billers in your
region. RTGS/NEFT.
Customers can transfer money from your State Bank account to accounts in other banks using
the RTGS/NEFT service. The RTGS system facilitates transfer of funds from accounts in one
bank to another on a "real time" and on "gross settlement" basis. This system is the fastest
possible interbank money transfer facility available through secure banking.
RTGS transaction requests will be sent to RBI immediately during working hours post
working hours requests are registered and sent to RBI on next working day. Can also
schedule a transaction for a future date. National Electronic Funds Transfer (NEFT)
facilitates transfer of funds to the credit account with the other participating bank. RBI acts as
the service provider and transfers the credit to the other bank's account.
 FUND TRANSFER:
The Funds Transfer facility enables to transfer funds within accounts in the same
branch or other branches. Transfer aggregating Rs.1 lakh per day to own accounts in the same
branch and other branches. To make a funds transfer, you should be an active Internet
Banking user with transaction rights. Funds transfer to PPF account is restricted to the same
branch.
Just log on to retail section of the Internet Banking site with your credentials and select the
Funds Transfer link under Payments/Transfers tab. Select the debit account from which you

wish to transfer funds and the credit account into which the amount is to be credited. Enter
the amount and remarks. The remarks will be displayed in your accounts statement for this
transaction. On confirming the transaction, you will be displayed a confirmation page with
the details of the transaction and the option to submit or cancel the funds transfer request. A
reference number will be generated for your record.
 THIRD PARTY TRANSFER:

The transfer funds to your trusted third parties by adding them as third party accounts.
The beneficiary account should be any branch SBI. Transfer is instant. Do any number of
Transactions in a day for amount aggregating Rs.1lakh. To transfer funds to third party
having account in SBI, Need to add and approve a third party, Need to register mobile
number in personal details link under profile section. Will receive a One Time SMS password
on mobile phone to approve a third party. If you do not have a mobile number, third party
approval will be handled by your branch. Only after approval of third party, you will be able
to transfer funds to the third party. Limits for third party transactions made from your
accounts or even set limits for individual third parties.
 DEMAND DRAFT:
The Internet Banking application enables you to register demand drafts requests
online. A demand draft from any of Accounts (Savings Bank, Current Account, Cash Credit
or Overdraft). Limits for demand drafts issued from your accounts or use the bank specified
limit for demand drafts. To collect the draft in person at your branch, quoting a reference to
the transaction. A printed advice can also be obtained from the site for your record.
Alternatively, May request the branch to courier it to registered address, and the courier
charges will be recovered.
 CHEQUE BOOK REQUEST:

The request for a cheque book online. Cheque book can be requested for any of your
Savings, Current, Cash Credit, and Over Draft accounts. The cheque books with 25, 50 or
100 cheque leaves. Either collects it from branch or request branch to send it by post or
courier. Cheque books will be dispatched within 3 working days from the date of request.
Just log on to retail section of the Internet Banking site with your credentials and select the
Cheque Book link under Requests tab.

 ACCOUNT OPENING REQUEST:

‘Online SBI’ enables you to open a new account online. Can apply for a new account
only in branches where you already have accounts. Should have an INB-enabled account with
transaction right in the branch. Funds in an existing account are used to open the new
account. Can open Savings, Current, Term Deposit and Recurring Deposit accounts of
Residents, NRO and NRE types. Just log on to retail section of the Internet Banking site with
credentials and select the New Account link under Requests tab. Select the account and
account type you wish to open and submit the same. Then, need to select the branch and enter
the initial amount to open the account. The select any of your accounts for debiting the initial
amount. Then, submit the transaction. The new account opening request will be processed by
the branch.
 ACCOUNT STATEMENT:
The Internet Banking application can generate an online, downloadable account statement for
any of accounts for any date range and for any account mapped to username. The statement
includes the transaction details, opening, closing and accumulated balance in the account.
Generate the online account statement for any date range or for any month and
DEMAT ACCOUNT STATEMENT:

‘Online SBI’ enables you to view Demat account statement and maintain such
accounts. The bank acts as your depository participant. In the third party site, mark a lien on
Demat accounts and use the funds to trade on stock using funds in your SBI savings account.
Demat account details, and generate the following statements: statement of holding,
statement of transactions, statement of billing.
 Recent Technology Innovation by State Bank of India:

State Bank of India and five of its associate banks got more than 3500 of their branches
connected under the second phase of the $29 project assigned to Data craft. State Bank of
India launched a mobile ATM, using Reliance CDMA technology, on a boat near Vypeen
islands in the Kochi Backwaters. IT in banks provide Customer identification Cross selling
Up selling Customer satisfaction and Delight Customer Acquisition Customer Retention 95
ICICI bank deployed a mobile ATM using Reliance Fixed Wireless Terminal (FWT) outside
the Wankhede stadium during the India-Australia oneday cricket match.4 It has been
established that increasing the role of technology in a banking service can reduce costs and
often improve customer’s satisfaction. This study elucidates the customers’ preference and
satisfaction with technology based products and services of SBI in public sector and ICICI in
private sector. However the customer satisfaction has been linked with the:
 Computerized services
 Internet banking
 Core banking
 ATM services
 Mobile and SMS services
 SWOT ANALYSIS OF SBI INTERNET BANKING:
STRENGTHS:
 Greater reach to customers

 Quicker time to market
 Ability to introduce new products and services quickly and successfully
 Ability to understand its customers‟ needs
 Customers are given access to information easily across any location
 Greater customer loyalty
 Easy online application for all accounts, including personal loans and mortgage
 24 hours account access
 Quality customer service with personal attention
WEAKNESSES:

 Lack of awareness among the existing customers regarding internet banking

 Obsolesce of technology take place very soon specially in terms of security on
internet.
 Procedure for applying for id and password for using services related to internet
banking takes time.
 Lack of knowledge is found regarding internet banking in employees of SBI
 Implementation of newer technology is little bit complicated
 Employees needs training to obtain knowledge regarding I-banking
OPPORTUNITIES:
 Approximately 95% of customers are not using internet banking.
 Core competency can be achieved in terms of banking if focus is made on awareness
of internet banking
 Can become 1st virtual bank of India.
 Concentration of various services should be made using internet banking
CHALLENGES:
 Maintaining Business Edge over competitors in the context of sameness in IT

infrastructure
 Multiple vendor support is necessary for working of highly complex technology
 Maintaining secured IT infrastructure for business operations
 Alternative must be there in case of failure of system
ICICI BANK:

ICICI Bank is India's largest private sector bank with total assets of Rs. 6,461.29 billion (US$
103 billion) at March 31, 2016 and profit after tax Rs. 111.75 billion (US$ 1,788 million) for
the year ended March 31, 2016 ICICI Bank currently has a network of 4,070 Branches and
15.472ATM's across India.
History:
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was
reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering
in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of
Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by
ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at
the initiative of the World Bank, the Government of India and representatives of Indian
industry. The principal objective was to create a development financial institution for
providing medium-term and long-term project financing to Indian businesses.
In the 1990s, ICICI transformed its business from a development financial institution offering
only project finance to a diversified financial services group offering a wide variety of
products and services, both directly and through a number of subsidiaries and affiliates like
ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE.
After consideration of various corporate structuring alternatives in the context of the
emerging competitive scenario in the Indian banking industry, and the move towards
universal banking, the managements of ICICI and ICICI Bank formed the view that the
merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities,
and would create the optimal legal structure for the ICICI group's universal banking strategy.
The merger would enhance value for ICICI shareholders through the merged entity's access
to low-cost deposits, greater opportunities for earning fee-based income and the ability to
participate in the payments system and provide transaction-banking services. The merger
would enhance value for ICICI Bank shareholders through a large capital base and scale of
operations, seamless access to ICICI's strong corporate relationships built up over five
decades, entry into new business segments, higher market share in various business segments,
particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries.
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of
ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial

Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was
approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of
Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and
the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's
financing and banking operations, both wholesale and retail, have been integrated in a single
entity.
New York Stock Exchange (NYSE):

Established in 1994, ICICI Bank is today the second largest bank in India and among the top
150 in the world. In less than a decade, the bank has become a universal bank offering a well
diversified portfolio of financial services. It currently has assets of over US$ 79 billion and a
market capitalization of US$ 9 billion and services over 14 million customers through a
network of about 950 branches, 3300 ATM's and a 3200 seat call center (as of 2007). The
hallmark of this exponential growth is ICICI Bank’s unwavering focus on technology.
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.
PRODUCTS & SERVICES:

Personal Banking Deposits

Loans Cards
Investments Insurance
Demat Services Wealth Management
NRI Banking Money Transfer
Bank Accounts Property Solutions
Investments Business Banking
Corporate Net Banking Trade Services
Cash Management FX Online
SME Services Custodial Services
Online Taxes SME Services
Online Taxes Custodial Services
Insurance Loans
KEY BUSINESS DRIVERS:

ICICI Bank was set up when the process of deregulation and liberalization had just
begun in India and the Reserve Bank of India (India’s central bank) had paved the way for
private players in the banking sector, which at that time was dominated by state-owned and
foreign banks. Serving the majority of the country’s populace, state owned banks had a large
branch network, with minimal or no automation and little focus on service. Foreign banks, on
the other hand, deployed high-end technology, had innovative product offerings, but had a
very small branch network that serviced only corporate's and individuals with high net worth.
Sensing an untapped opportunity, ICICI Bank decided to target India’s burgeoning middle
class and corporate's by offering a high level of customer service and efficiency that rivaled
the foreign banks, on a much larger scale, at a lower cost. A crucial aspect of this strategy
was the emphasis on technology.
ICICI Bank positioned itself as technology-savvy customer friendly bank. To support its
technology focused strategy, ICICI Bank needed a robust technology platform that would
help it achieve its business goals. After an intense evaluation of several global vendors, ICICI
Bank identified Infosys as its technology partner and selected Finacle, the universal banking
solution from Infosys, as its core banking platform. An open systems approach and low TCO
(Total Cost of Ownership) were some of the key benefits Finacle offered the bank. Unlike
most banks of that era, ICICI Bank was automated from day one, when its first branch
opened in the city of Chennai. Some of the reasons cited by the bank for its decision to select
Finacle include Finacle’s future-proof technology, best of-breed retail and corporate banking
features, scalable architecture and proven implementation track record.
KEY DEVELOPMENTS:
ICICI Bank Limited Setting Up $100 Million Fund For Small, Mid Size Companies-
DJ: Thursday, 10 Jun 2010, Dow Jones reported that ICICI Bank Limited said it is setting up
a $100 million venture capital fund to finance small and medium-size enterprises. The
Emerging India Fund has received firm commitments from several institutions and its first
closure is likely to happen in the next few weeks for $50 million. The fund will be managed
by ICICI Investment Management Co. Ltd., a wholly owned subsidiary of ICICI Bank
Limited.
Security features:
ATM PI
Never disclose your four-digit ATM PIN to anyone. Do not write it on the Card or anywhere
else. Simply memorise it. We recommend that you change the PIN to a number of your
choice as soon as possible, and change it at regular intervals.
Shopping at merchant establishments:

In case of purchases, this Card can only be used at merchant outlets with a VISA
enabled electronic POS swipe terminal. Please do not try and use your Card at merchants
with “paper imprinters” or for mail / telephone order transactions. Always ensure that the
Card is used in your presence when transacting at merchants. Never sign an incomplete
charge slip.
Magnetic strip:
Please protect your Card from scratching or exposure to magnets Changing Contact
Details: If your contact details change please inform ICICI Bank Ltd. by visiting a branch or
by calling our 24 hour Customer Care.
Subsidiaries:
Domestic:
ICICI Prudential Life Insurance Company Limited
ICICI Lombard General Insurance Company Limited
ICICI Prudential Asset Management Company Limited
ICICI Prudential Trust Limited

ICICI Securities Limited

ICICI Securities Primary Dealership Limited
ICICI Venture Funds Management Company Limited
ICICI Home Finance Company Limited
ICICI Investment Management Company Limited
ICICI Trusteeship Services Limited
ICICI Prudential Pension Funds Management Company Limited[48]
International:
ICICI Bank USA
ICICI Bank UK PLC
ICICI Bank Canada
ICICI Bank Eurasia Limited Liability Company
ICICI Securities Holdings Inc.
ICICI Securities Inc.
ICICI International Limited
 Awards and Achievements of ICICI:

The awards to be taken on 2011-2015:
 2011: ICICI Bank won the 'Best CRM Project' and 'Best Banking Security Systems'
by The Asian Banker.
 2012: Airtel, ICICI among 'top 100 global brands'
ICICI Bank received the Golden Peacock Innovative Product / Service Award.

 2013:
ICICI bank won the 'Next Generation Banking solution' award by Celent.
ICICI bank won the Best Domestic Trade Finance Bank and Best Financial Supply
Chain Project Award in India by The Asian Banker.
ICICI Bank won the honours of the Medici Innovation Hall of Fame Award, instituted
by The Medici Institute in collaboration with the Medici Group, USA.
 2014:
According to the Brand Trust Report 2014, ICICI Bank was ranked 28th among
India's most trusted brands, a research conducted by Trust Research Advisory.
ICICI Bank was ranked second at the 'National Energy Conservation Award 2014'
under the office buildings (less than 10 lakh kWh/year consumption) category.
ICICI Bank was fifth in the world and second in India on the 'Top Companies for
Leaders' in a study conducted by Aon Hewitt.
 2015:
ICICI Bank won an award in the BFSI Leadership Summit & Awards in the 'Best
Phone Banking for End-users’ category.
ICICI Bank has been declared as the first runner up at Outlook Money Awards 2015
in the category of ‘Best Bank.
ICICI Bank has been adjudged the ‘Best Retail Bank in India’ by The Asian Banker.
It has also emerged winners in the categories of ‘Best Internet Banking Initiative’ and
‘Best Customer Risk Management Initiative’ awards given by The Asian Banker.
CHAPTER- 4
DATA ANALYSIS AND INTERPRETATION
4.1 INTRODUCTION:

This study is confined to 30 different respondents selected randomly in Ballari city in order to
analyze the factors influencing e-banking services of SBI and ICICI Banks. In order to
recognize I used structured questionnaire. The data has been analyzed and interpreted in order
to get the appropriate findings through drawing proper inferences. In this chapter, the
statistical charts are used
4.2 Data analysis and Interpretations
Table 1:
Table shows Gender of respondents:
Gender No of SBI % No of ICICI % Total

respondent respondent
Male 10 67 11 73 21
Female 05 33 04 27 09
Total 15 100 15 100 30
Source: Primary data
Graphical representation showing Gender of respondents:

120
100
80
60 Male
Female
40 Total
20
0
No of SBI % No of ICICI %
Interpretation:
From the above table, it clearly shows that out of 30 respondents of both SBI& ICICI Banks,
67% of respondents are male, 33% of respondents are female of SBI bank. And 73% of
respondents are male & 27% of respondents are female in ICICI bank. It indicates that, in
both the banks, male respondents are more in no. when compared to female respondents.
Table 2:
Table shows Banking facilities provided bank to the respondents:

Particular No of SBI % No of ICICI % Total

Loan 03 20 04 27 07
facilities
O/D facilities 02 13 04 27 06
ATM 10 67 07 46 17
facilities
Total 15 100 15 100 30
Source: Primary Data
Graphical Representation Showing Banking facilities provided bank to the respondents:
120
100
80
60 Loan facilities
O/D facilities
40 ATM facilities
Total
20
0
Interpretation:
This table shows the information about 30 respondents of both SBI &ICICI Banks. From the
information provided above, we can draw the inference about the facilities which are vital in
those banks. Likewise 20% of respondents express that loan facilities are important, 13% of
respondents have said as O/D facilities are important, and 67% of respondents say that ATM
facilities are important in SBI bank. And 27% respondents gave their opinion towards Loan
facilities, as well as O/D facilities, and 46% of respondents are opting for ATM facilities of
ICICI bank.
Table 3:
Table shows competitive interest rate Bank offers to the respondents:
Respondent Respondent

Yes 12 80 09 60 21
No 01 07 05 33 06
Not Aware 02 13 01 7 03
Total 15 100 15 100 30
Graphical Representation Showing competitive interest rate Bank offers to the

respondents
100
90
80
70
60
Yes
50 No
40 Not Aware
30 Total
20
10
0
Interpretation:
From the above table shows about the offers given by both SBI and ICICI banks. One of the
offers given by both the banks is taken for study which is analyzed here. The banks providing
competitive interest rate is one such example, for which some respondents said yes, some
respondents said that no and some of the respondents are not aware. 80% of respondents said
yes, 7% of respondents said no and 13% of respondents are not aware of the offers provided
in SBI Bank. And 60% of respondents said yes, 33% of respondents said no and 7% of
respondents are not aware of the offers in ICICI Bank Respondents.
Table 4:
Table shows the banking service used by the Respondents:
Personalized service 02 13 05 33 07
Wide branch network 03 20 02 13 05

Customer service 09 60 07 47 16
Computerized banking 01 7 01 7 02
Total 15 100 15 100 30
Graphical Representation showing the banking service used by the Respondents:

120
100
80
60
40 No of SBI Respondent
20 %
No of ICICI Respondent
0 %
Interpretation
This table shows information about the services offered by the banks of 30 respondents of
both SBI & ICICI Banks. Out of which 13% of respondents are have gave their preference
towards personalized service, 20% of respondents are opting for wide branch network, and
60% of respondents are opting for customer service and 7% of respondents have their
preference towards computerized banking in SBI Bank. And 33% of respondents are opting
for personalized service, 13% of respondents are opting for wide branch network, 47% of
respondents are opting for customer service, and 7% of respondents are opting for
computerized service in ICICI Bank.
Table 5:
Table shows the satisfied are respondent with the service provided by the bank:
Very satisfied 06 40 07 47 13
Satisfied 07 47 06 40 13
Somewhat 02 13 02 13 04
satisfied

Total 15 100 15 100 30

Graphical Representation showing the satisfied are respondent with the service
provided by the bank:
200
160
120
80 Total
40 Somewhat satisfied
Satisfied
0 Very satisfied
t % t %
d en d en
p on p on
Res R es
BI IC
I
o fS IC
f
No o
No
Interpretation:
This table indicates the satisfaction of 30 respondents of both SBI & ICICI Banks. Out of
which 40% of respondents are very satisfied with the services offered, 47% of respondents
are satisfied, and 13% of respondents are somewhat satisfied with the services offered in SBI
Bank. And 47% of respondents are very satisfied, 40% of the respondents are satisfied and
13% of respondents are somewhat satisfied in ICICI Bank.
Table 6:
Table shows the type of account opened by the respondents:
Savings 11 73 10 67 21
account
Loan account 02 13 01 7 03
Current 01 7 02 13 03
account
Joint account 01 7 02 13 03

Total 15 100 15 100 30

Graphical Representation showing the type of account owned by the respondents:
140
120
100
80
%
60 No of ICICI Respondent
No of SBI Respondent
40
20
0
Savings Loan Current Joint Total
account account account account
Interpretation:
The above table shows the type of the accounts opened by 30 respondents of both SBI &
ICICI Banks. Out of which, 73% of respondents have owned savings a/c, 13% of respondents
have owned loan a/c, 7% of respondents have owned current a/c in SBI Bank. And 67% of
respondents are having saving a/c, 7% of respondents are having loan a/c and 13% of the
respondents are having current a/c in ICICI Bank.
Table 7:
Table shows major purpose for the usage of online banking of the respondents:
Online ticket booking 02 13 05 33 07
Online bill payment 05 33 04 27 09
Balance check 07 47 04 27 11
Others 01 7 02 13 03
Total 15 100 15 100 30
Sources: Primary Data
Graphical Representation showing major purpose for the usage of online banking of the
respondents:

250
200
150
100 %
50
%
g t s al
in en ck er t
k ym ch
e
Ot
h To
b oo pa e
ke
t ll nc
it c bi la
e Ba
in
e lin
l On
On
Interpretation:
This table shows the major purpose for the usage of online banking of 30 respondents of both
SBI and ICICI banks. 13% of respondents say that online ticket booking is one of the major
usages of online banking, 33% of respondents say online bill payment is a priority to them,
47% of respondents say balance checking is a priority and 7% of the respondents have
expressed as other services in SBI Bank respondent. And 33% of respondents have a
preference for online ticket booking, 27% of respondents have a preference towards online
bill payment and as well as balance checking, other using services are said by 13% of
respondents of th
Table 8:
Table shows satisfaction level of the respondents towards both the banks:
Yes 12 80 13 87 25
No 01 7 02 13 03
Cannot say 02 13 00 00 02
Total 15 100 15 100 30
Graphical Representation showing satisfaction level of the respondents towards both

the banks:

120
100
80
60 Yes
No
40 Cannot say
Total
20
0
Interpretation:
The above table shows the satisfaction level of the respondents of 30 respondents’ of both
SBI and ICICI Banks. Out of which 80% of respondents said that they are satisfied, 7% of
respondents stated that, they are not satisfied and 13% of respondents have not disclosed the
feedback of SBI Bank. And 87% of respondents said they are satisfied, 13% of respondents
ot satisfied of ICICI Bank. This indicates that more no. of respondents are satisfied with the
banking service
Table 9:
Table shows type of transactions made by the respondents:
Withdrawal & deposits 07 47 06 40 13
Pass book Updation 01 7 01 7 02
Balance Enquiry 02 13 02 13 04
Cheque 01 7 03 20 04
Bill payment 02 13 02 13 04
Money Transfer 02 13 01 7 03
None of these 00 00 00 00 00
Total 15 100 15 100 30
Graphical Representation showing type of transactions made by the respondents:

250
200
150
100
%
%
Interpretation:
The table showing types of transaction visit of 30 respondents of both SBI and ICICI banks.
47%, 7%, 13%, 7%, 13% and 13% of respondents are having their transaction with the
withdrawal and deposit facility, pass book updation, balance enquiry, cheques, Bill payment
and Money transfer respectively of SBI bank. And 40% , 7%, 13%, 20%, and 7% of
respondents are convenient with withdrawal and deposit, pass book updation, balance
enquiry, cheque, Bill payment and Money transfer transaction respectively of IC
Table 10:
Table shows which type of e-banking services is opted by the respondents:
Withdrawal & Deposit 06 40 08 53 14
Balance Enquiry 02 13 01 7 03
Bill payment 02 13 04 27 06
Money Transfer 05 34 02 13 07
None of these 00 00 00 00 00
Total 15 100 15 100 30
Graphical Representation showing which type of e-banking services is opted by the

Respondents:

120
100
80
60
%
20
0 %
Interpretation:
The table shows which type of e-banking service is opted by 30 respondents of both SBI and
ICICI Bank. 40% , 13%, 13%, and 34% of respondents have given their opinion towards
withdrawal and deposits, balance enquiry, bill payment and money transfer transactions
respectively of SBI bank. And 53%, 7%, 27% and 13% of respondents have said withdrawal
and deposits, balance enquiry, bill payment and money transfer transaction respectively of the
ICICI.
Table 11:
Table shows type of e-banking services is comfortable to the respondents:
ATM 06 39 07 46 13
Online banking 04 27 03 20 07
Internet Banking 01 7 01 7 02
Mobile Banking 03 20 04 27 07
Telephone Banking 01 7 00 00 01
None of these 00s 00 00 00 00
Total 15 100 15 100 30
Graphical Representation showing type of e-banking services are comfortable to the

respondents:

250
200
150
100 %
50 %
No of SBI Respondent
0
M in
g ng ng ng es
e t al
AT ank n ki n ki n ki th To
a a a o f
eb e tB l e B ne B one
il n rn i
On te ob ho N
In M l ep
Te
Interpretation:
The table shows which type of e-banking service are comfortable to 30 respondents of both
SBI and ICICI Banks. 39%, 27%, 7%, 20% and 7% of respondents have a feedback towards
ATM, internet banking, Mobile banking and telephone banking services respectively of SBI
bank. And 46%, 20%, 7%, and 27% of respondents have a priority towards ATM, online
banking, internet banking, and Mobile banking services respectively of ICICI Bank.
Table 12:
Table shows Feedback on over all transactions of the respondents towards both the
banks:
Agree 07 46 09 60 16
Strongly Agree 06 40 05 33 11
No opinion 01 7 00 00 01
Disagree 01 7 01 07 02
Total 15 100 15 100 30
Graphical Representation Showing Feedback on over all transactions of the

respondents towards both the banks:

120
100
80
%
%
20
0
Agree Strongly No Disagree Total
Agree opinion
Interpretation:
The table showing the feedback on overall transactions of 30 respondents of both SBI and
ICICI Banks.46% of respondents said they agree to the statements, 40% of respondents said
strongly agree and 7% of the respondents said no opinion of SBI Bank. And 60% of
respondents said they agree, 33% of respondents said strongly agree and 7% of respondents
said they disagree of ICICI Bank.
From the above analysis made, it is clear that the services offered by both the banks are quite
positive in nature to the respondents. This indicates the overall satisfaction towards both the
banks is good.

CHAPTER- 5
FINDINGS SUGGESTIONS AND CONCLUSION
5.1 INTRODUCTION:
The main purpose of this chapter is to present a brief summary of findings and
conclusion of this study and thereafter to provide certain suggestions for overcoming the
problems, being identified in this study relating to satisfaction towards e-banking services.
This Study is undertaken with a broad objectives and Questionnaire of assessing the
satisfaction towards E-banking services and Special References to SBI and ICICI Banks.
The method of the study is based on the primary data collected through well-framed and
structured questionnaires to the well-considered opinions of both SBI and ICICI bank s who
operate different type of accounts. The Questionnaires has been used to collect the responses
from the bank s. The study has been conducted in two stages, with a primary data and
secondary data of the study.
The study is completed with the distribution of the questionnaire to 30 respondents belonging
to SBI and ICICI banks. The respondents from the statements in the questionnaires.
5.2 Findings of the study:

 The analysis study shows the income level which helps to obtain an information that
maximum of 53% of respondents fall in the category of income level of Rs. less than
10.000, and in ICICI bank a maximum of 47% of respondents are in the category of
income level of less than Rs.10,000. And 33% and 20% of respondents fall in the
category of the income of 10.000 –20.000 and below income of the respondents are
40.000- 50-000 of the respondents of SBI and ICICI banks.
 The analysis draws out the picture of loan facilities operation of both SBI and ICICI
Banks respondents. Where 20% of respondents account for SBI and 27% of
respondents accounts for ICICI Bank. Further it is found that OD account is operated
by 13% of SBI and 27% of respondents of ICICI bank. And 67% of respondents are
using ATM facilities from SBI bank and only 46% of respondents are from ICICI
Bank.
 The study of findings shows that the bank charges unnecessary charges for not
maintaining minimum balance in the account of the respondents of both SBI and
ICICI Bank. More than 80% of respondents have agreed with this question, 13% of
respondents have not agreed to it. And 47%, 40% and 13 of respondents are for ICICI
Bank.
 The study finds out that 73% of SBI bank and 67% from ICICI bank are using savings
account. Further it is found that 13% of ICICI bank and 7% of in SBI operate the loan
account and 7% of respondents are using in current a/c as well as joint a/c of SBI
Bank. And 13% of respondents are operating joint a/c as well as current a/c of the
ICICI Bank respondents.
 The study of analyzing are able use e-banking services of both SBI and ICICI Banks.
The more respondents are saying yes like 80% of SBI and 86% of ICICI Bank
respondents and 7% of respondents are cannot be disclose the information of the SBI
and ICICI Banks.
 The finding study of related to they have faced a problems for respondents of the both
SBI and ICICI bank. Like 20%, of respondents are once time, 33% of respondents are
1-5 times, 7% of respondents are 5-10 and never faced problem by respondents is

40% of SBI Bank. And 33%, of respondents are once time, 27% of respondents are 1-
5 times, 13% of respondents are 5-10 and never problem faced by respondents is 27%
of ICICI Bank.
 The study of analysis shows the satisfaction factors towards the usage of online
banking of SBI and ICICI banks. It is found that the both SBI and ICICI banks
respondents are highly satisfied towards the online ticket booking, online bill payment
and balance check. There is a positive relationship between the satisfaction of SBI and
ICICI bank respondents.
 The study draws out the finding towards usage for E-banking service which generates
greater satisfaction to the SBI and ICICI Banks respondents towards the information
provided about the ATM facilities, online banking, internet banking, mobile banking
and telephone banking. Further it is observed that the respondents of SBI and ICICI
banks are using more online services, ATM facilities and mobile banking services.
 There is a positive feedback for overall satisfaction of e-banking services of SBI and
ICICI banks. This further adds up that 46% of respondents are for SBI and 60% of the
respondents for ICICI Bank.
5.3 SUGGESTIONS:
 In the backdrop of analysis made, it reveals that, bank should encourage more number
of customers to adopt e-banking. The customers should learn new precautionary
measures so that nobody can misuse their privacy settings.
 The above analysis of the study gives us a picture of respondents opinion for charges
being imposed by SBI and ICICI Banks. Their response goes with charging high
charges for not maintaining sufficient balance in the accounts. Therefore, the banks
should be cautious in charging the charges.
 The above analysis expresses the respondents’ unfavourable response towards the
awareness of the interest rate of both SBI and ICICI banks. So banks should take

some measures in order to create awareness about interest rates of various schemes
being offered by banks.
 Most of the customers felt that opening of an account is very difficult in the banks. So
these procedures should be made easier in order to have an ease of access to opening
up of bank accounts of both SBI and ICICI banks.
 Since 13% of the Respondents were somewhat satisfied with the transactions of SBI
and ICICI Banks. It adds up to the time consuming process leading to uncomfortable
zone to customers. In order to remove this drawback, both the banks i.e., SBI and
ICICI should recruit more no. of personnel.
 The above analysis shows that online banking services provided by both SBI and
ICICI Banks where 7% of respondents are not aware about the e-banking services
provided. The bank management should try to give the advertisement through media
about the previously mentioned issue.
 Majority of the customers will prefer online bill payment and balance check facility
provide by SBI and ICICI Banks. So the management should impose low service
charges on Online Bill Payments to its respondents.
5.4 CONCLUTION:
E-banking services technology is highly useful to customers as well as banks
and other organizations like government organizations. To increase productivity,
efficiency, service quality of banks, expansion of banks globally e-banking is major
important for all commercial banks to adopt in their countries, the digitalized banking
services. SBI and ICICI Banks should try to maintain proper system for internet
banking.

Bibliography:
Reference Books:
 Agarwal,B.P,commercial Banking in India after Nationalisation.
 Bhagawati,P.& Agarwal.D . Commercial Banking in India after Nationalisation.
 Wamalwa, Tomm ‘The impact of internet banking on banks; A descriptive and
evaluative case study of a large united states bank.
 Agarwal R., Rastogi,S. Mehrotra, “Customers perspectives regarding e-
banking in an emerging economy”, consumer services.
WEBSITES:
 www.statebankof.india,com
 www.onlinesbi.com
 www.onlineservicesbi.com
 www.icicionline.com
 www.icicionlineservice.com
 www.iciciproduct.com

ANNEXTURE
SURVEY QUESTIONNAIRE:
This survey is aimed at understanding the impact of E-Banking Service of customer

satisfaction with E-Banking services with special reference to SBI and ICICI Banks. In
this objective, you have been duly selected as a member of the sample to provide relevant and
objective data needed to satisfy the questions for this knowledge. This questionnaire will
taken on 30 respondents for SBI and ICICI Banks to be completed.
1. Name :
2.Gender: a) Male b) Female
3. Name of your Bank:

4. Which of the following facilities are given more importance in your bank?
a) Loan facilities b ) O/D facilities c) ATM facilities
5. Do you think your bank offers competitive interest rate?

a) Yes b) No c)Not Aware
6. How satisfied are you with the services provided by the bank?
a) Very satisfied b) Satisfied c) Somewhat satisfied
d) Dissatisfied
7. What type of banking account do you have?

a) Savings account b) Loan account c) Current account
d) Joint account
8. Are you able to use banking services online?

a) Yes b) No c)cannot say
9. How quickly were your banking problems and issues addressed by the bank staff?
a) Immediately b) Within 24 hours c) Within 48 hours
d) More than a week
10.What is the major purpose for which you use the online banking?
a).Online Ticket Booking b).Online Bill Payments
c).Balance Check d). Others Please specify
11. Are you satisfied with online banking?

a).Yes b).No c) cannot say
12. For which of the following transactions you visit to the bank?
a) Withdrawal & Deposit b) Pass Book Updation c) Cheque
d) Balance enquiry e) Bill Payment f) Money Transfer
g)None of these
13. For which of the following transactions you use e-banking services?
a)Withdrawal & Deposit c)Balance Enquiry f) Demand Draft

d) Cheque g)Bill Payment h)Money Transfer

i)None of these
14. Which of the following e-banking services you are comfortable with?
a)ATM b)Online Banking c)Internet Banking
d)Mobile Banking e)Telephone Banking f)PC Banking
g)None of these
15. Computerization has helped me to reduce the waiting time for any transaction in the
Bank.
a) Strongly agree b) Agree c)No Opinion
d) Disagree e) Strongly Disagree

E-Banking Services With Special Reference To SBI and ICICI: List of Content

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

E-Banking Services With Special Reference To SBI and ICICI: List of Content

Uploaded by

Copyright:

Available Formats

E-Banking services with special reference to SBI and ICICI

II Chapter 2: Theoretical background of the study

III Chapter 3: profile of SBI and ICICI bank

IV Chapter 4: Data Analysis & Interpretation

V Chapter 5: Findings, Suggestions and Conclusion

VSK UNIVERSITY BALLARI Page 1

The upsurge in Information communication Technology [ITC] in the present world

VSK UNIVERSITY BALLARI Page 2

1.2 Statement of the problem:

1.3 Objectives of the study:

VSK UNIVERSITY BALLARI Page 3

 To offer suitable suggestions on the basis of study

1.4 SCOPE OF THE STUDY:

1.5 Methods of Data collection:

This study is based on both primary and secondary data.

VSK UNIVERSITY BALLARI Page 4

1.7 Limitations of the study:

 The data was collected within one month time period.

VSK UNIVERSITY BALLARI Page 5

THEORETICAL BACKGROUND OF THE STUDY

2.3 Features of e-banking:-

VSK UNIVERSITY BALLARI Page 7

 We carry out all banking transaction at our own c0nvenience

2.5 Structure of Indian Banking System:

STRUCTURE OF INDIAN BANKING

 Online Banking in India:-

VSK UNIVERSITY BALLARI Page 8

 Information only System:

VSK UNIVERSITY BALLARI Page 9

 CLASSIFICATION OF PRODUCTS AND SERVICES OF E-BANK:

I.T. based products & services and their working Mechanism:

VSK UNIVERSITY BALLARI Page 10

 E-Rail (Electronic rail booking):

 On-Line Trading Services:

 The following are services provided through ATMs by the banks:

VSK UNIVERSITY BALLARI Page 11

 Maximum limit per withdrawal

VSK UNIVERSITY BALLARI Page 12

 Safe Deposit Locker Remittance:

 Multi City Cheques (MCC):

 Mobile Phone Banking:

VSK UNIVERSITY BALLARI Page 13

 Investment Services / Cash Management Services:

2.6 COMPUTERISED E-SERVICES:

VSK UNIVERSITY BALLARI Page 14

Computerized Services at Branch Level:

 The Settlement System

VSK UNIVERSITY BALLARI Page 15

 Structured financial messaging solutions

 Debit card management solution (manages the lifecycle of ATMs and

 The Settlement System:

 MICR / OCR Clearing System:

VSK UNIVERSITY BALLARI Page 16

 Electronic Debit Clearing:

 Credit Clearing System:

 Real Time Gross Settlement (RTGS):

VSK UNIVERSITY BALLARI Page 17

 2.8 E-BANKING GROWING POWERFUL:

 That most ‘brick-and-mortar’ banks are shifting from a ‘product-centric’ model to a

VSK UNIVERSITY BALLARI Page 18

as PC banking (Personal Computer Banking), Internet banking, Virtual banking, On-

 Benefits to the Organisations: