Quality of Online Banking Services: in Comparitive Study of Sbi & Icici Bank"

Quality Of Online Banking Services In India: A Comparative Study Of SBI & ICICI Bank
“QUALITY OF ONLINE BANKING SERVICES: IN

COMPARITIVE STUDY OF SBI & ICICI BANK”
BACHELOR OF MANAGEMENT STUDIES

SEMESTER V
(2017-2018)
SUBMITTED BY
KARISHMA PRAJAPATI
1325
UNDER THE GUIDANCE
DR. ANIL R. CHOUGULE

M.A., NET, M. PHIL, PHD
ASSISTANT PROFESSOR (ECONOMICS)
SYDENHAM COLLEGE OF COMMERCE AND

ECONOMICS
‘B’ ROAD, CHURCHGATE, MUMBAI-400020
Sydenham College of Commerce &Economics 1

“QUALITY OF ONLINE BANKING SERVICES: IN COMPARITIVE

STUDY OF SBI & ICICI BANK”
SEMESTER V
(2017-2018)
SUBMITTED
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE AWARD OF DEGREE OF
BY
KARISHMA PRAJAPATI
1325
UNDER THE GUIDANCE

DR. ANIL R. CHOUGULE
M.A., NET, M. PHIL, PHD
ASSISTANT PROFESSOR (ECONOMICS)
SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS

‘B’ ROAD, CHURCHGATE, MUMBAI-400020

DECLARATION
I, Karishma Prajapati the student of Third Year, Semester V (2017) hereby

declare that I have completed the project on ‘Quality on Online Banking
Services in India: A Comparative Study of SBI & ICICI Bank’.
The information submitted is true and original to the best of my knowledge.
Karishma Prajapati
Roll No. 1325
SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS
‘B’ Road, Churchgate, Mumbai-400020

SYDENHAM COLLEGE OF COMMERCE & ECONOMICS

'B' ROAD, CHURCHGATE, MUMBAI - 400020
BMS (BACHELORS OF MANAGEMENT STUDIES)
Date:
CERTIFICATE
This is to certify that Mrs. KARISHMA PRAJAPATI, ROLL NO. 1325

of Third Year B.M.S. Semester V (2017-18) has successfully completed the
project as a part of partial fulfillment of the course and she has done this
project under my guidance and supervision of Dr. Anil R. Chougule.
Dr. Jharna Kalra Dr.P.A. Pachgade Dr.Manoj B.Bhide

Course Coordinator Prof. In-Charge Principal
Project Guide/ Internal Examiner:-

Dr. Anil R. Chougule
External Examiner :-
Signature :-
Date :-

ACKNOLEDGEMENT
I would like to acknowledge the following as being idealistic channels and

fresh dimensions in the completion of this project.
I take this opportunity to thank University of Mumbai for giving me chance

to do this project.
I would like to thank my Principal, Dr. M. B. BHIDE for providing the

necessary facilities required for the completion of this project.
I take this opportunity thank our Coordinator Dr. Jharna Kalra &
professor in charge Dr. P. A. Pachgade, and for their moral support and
guidance.
I would also like to express my sincere gratitude towards my project guide

Dr. Anil R. Chougale whose guidance and care made the project successful.
I would like to thank my Sydenham College Library, for providing various

reference books and magazines related to my project.
Lastly, I would like to thank each and every person who directly or
indirectly help me in the completion of the project especially my father Mr.
Kishan Prajapati and my mother Mrs. Kiran Prajapati and peers who
supported me throughout my project.

TABLE OF CONTENTS
SR. NO TOPIC PAGE NO.
1. CHAPTER 1: INTRODUCTION & RESEARCH 1-16

METHODOLOGY
1.Introduction 1
1.1.Statement of the research 2
1.2. significance of online banking 2
3
1.3.Seven best online Features
1.4.History 4
1.5.Electronic banking & its evolution 5
1.6.IT revolution in banking sector 7
1.7.Review of Literature 9
1.8.Research methodology 12
1.9.Objectives of study 13
1.10.Limitation of study 13
1.11.Chapter scheme 14
References 15
2. CHAPTER II: PROFILE OF SBI 17-31
2. Introduction 17

2.1. Subsidiaries of SBI 17
2.2. History of SBI 18
2.3.Internet banking 19
2.4. Corporative social responsibility 20
2.5. Moving away from cash to digital 21
2.6. Products & services provided by SBI 24
2.7. What’s new in SBI 26
2.8. Awards & achievements of SBI 27
2.9.Promoter of SBI 28
2.10. Performances of SBI 29
Conclusion 31
3. CHAPTER III: PROFILE OF ICICI 32-44
3. Introduction 32
3.1. History 33
3.2. Products & services provide by ICICI bank 34
3.3. What’s new in ICICI 36
3.4. CRS in ICICI 37
3.5. Awards & achievements of ICICI 39
3.6. Promoter of ICICI 40

3.7. Performances of ICICI 42
Conclusion 44
4 CHAPTER IV: DATA INTERPRETATION & 45-74

ANAYLSIS
4. (i) Responses collected from customers 45-62
4.(ii) Responses collected from employees 63-74
5 SUMMARY, MAJOR OBSERVATIONS, 81-85

SUGGESTION & CONCLUSION
5.1. Summary 81
5.2. Major Observation 82
5.3. Suggestions 84
5.4. Conclusion 85
6 BIBLIOGRAPHY 86
7 ANNEXURE 87-93
Questionnaire 87
LIST OF DIAGRAMS
DIAGRAM NO. TITLE PAGE NO.
Subsidiaries of SBI
2.1 18
3.1 Corporate social responsibility of ICICI 38

LIST OF TABLES
TABLE NO. TITLE PAGE NO.
2.9 Promoter of SBI 28
2.10 Performances of SBI 29
3.0 Total asset & Total equity 33
3.6 Promoter of ICICI 40
3.7 Performances of ICICI 42
4.1 Age of respondents(customers) 45
4.2 Qualification of respondents(customers) 46
Account on which bank

4.3 47
Who use online banking

4.4 48
How many knows online banking

4.5 49
4.6 Bank branch visit 50
4.7 Aware about online banking 51
Reasons for choosing online banking services

4.8 52
Often use on online services

4.9 53
Mostly used online features

4.10 54
Banks services
4.11 55
Flexibility in online banking

4.12 56

Online banking transaction

4.13 57
Trust on online banking service security

4.14 58
Mobile banking & mobile wallet

4.15 59
Disadvantages of online banking

4.16 60
Unnecessary charges
4.17 61
Age of respondents(employees)
4.18 63
Post of respondents(employees)
4.19 64
4.20 Visit bank website per day 65
Update on website
4.21 66
Reason of introducing online banking

4.22 67
Aware about bank location on net

4.23 68
Difficulties faced by employees to work with e-

4.24 banking 69
Benefits to work with electronic banking

4.25 70
How long has been the bank provide internet services

4.26 71
Types of complaints register per month related to e-

4.27 72
banking
Is e-banking beneficial for banks?

4.28 73
Number of complaints received related to online

4.29 74
services

LIST OF GRAPHS
GRAPH NO. TITLE PAGE NO.
2.5 Moving Away From Cash To Digital 21
4.1. Age of respondents(customers) 46
4.2. Qualification of respondents(customers) 47
Account on which bank

4.3. 48
4.4. Who use online banking 49
How many knows online banking

4.5. 50
4.6. Bank branch visit 51
4.7. Aware about online banking 52
Reasons for choosing online banking services

4.8 53
Often use on online services

4.9 54
Mostly used online features

4.10 55
Banks services
4.11 56
Flexibility in online banking

4.12 57
Online banking transaction

4.13 58
Trust on online banking service security

4.14 59
Mobile banking & mobile wallet

4.15 60
Disadvantages of online banking

4.16 61

Unnecessary charges
4.17 62
Age of respondents(employees)
4.18 63
Post of respondents(employees)
4.19 64
4.20 Visit bank website per day 65

Update on website
4.21 66
Reason of introducing online banking
4.22 67
Aware about bank location on net
4.23 68
Difficulties faced by employees to work with e-
4.24 69
banking
Benefits to work with electronic banking

4.25 70
How long has been the bank provide internet services
4.26 71
Types of complaints register per month related to e-
4.27 72
banking
Is e-banking beneficial for banks?

4.28 73
Number of complaints received related to online
4.29 74
services

Executive summary
Online banking is a modern banking system. It is changing the ways of doing banking
business with modern technologies and techniques. It is the replacement of traditional
tools such as papers and pencils with the electronic systems. The introduction of Internet
in the business has further enhanced the capacity and capability of overall banking
system in terms of productivity, profitability, efficiency, quality of service and cost
effective delivery of numerous products/services. Information regarding money, its
storage in the computers in digital form and its movement anywhere in the world without
considering physical boundaries is described as digital money and this whole process as
Electronic Banking.
Online Service quality is considered as an important part of any service organization

especially to customer centric system like bank. In this research we used to find the
quality of online banking service of banks so as to compare the banks in terms of online
service quality. The study uses public sector banks like SBI and Private sector banks like
ICICI.
Customers and employees of selected branches of SBI & ICICI banks were taken for this
study. The banks were selected because they are very important in terms of size and
volume of business. Also found convenient to study.
In this research we studied about the quality of online banking services provided by SBI
& ICICI bank to their customer and how much the employees of this bank find it helpful.

CHAPTER I

CHAPTER I
INTRODUCTION & RESEARCH METHODOLOGY
1. Introduction
The introductory chapter focuses on the overview of Indian banking services and the
quality of the banking services. Quality in service is also interrelated to other behavioral
outcomes of the customers. The study understands the various customer perceptions
about the service quality factor like assurance, empathy, responsiveness, reliability and
tangibility in the banking industry and the satisfaction level towards the banks.
Banking services delivered over the internet. This include opening/closing of account,
domestic/foreign money transfer, standing orders, direct debit, debit card application,
loan application, credit card application, insurance investment, mutual funds investment
and etc.
Online services, including banking services, are becoming an attractive to visiting service
outlets or phoning call centers for increasing number of customers. Some of the reasons
for customers to prefer online services are: convenience, feeling more in control of the
service process and avoiding human contract and saving time.
This project has all the detail covering the level of e-banking services provided by the
SBI and ICICI banks to its customer. 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.
And the questionnaire is prepared to know about what the services provided by the bank
and on online services. In questionnaire various questions like factors to keep in mind
while selecting bank, bank employee’s attitude, time taken to provide services, extra
facilities customer’s problem solutions and etc.

1.1. Statement Of The Research
The title of the research is “A comparative study of SBI and ICICI online banking
services in India “with the reference to customer’s. This indicates that how far the
customers are satisfied with the services provided by banks in India.
To analyze this in the research primary data is collected through a questionnaire which is
filled by the SBI, ICICI and some other bank customer also. The collected data has been
analyzed to know that which banks satisfied the customers more.
1.2. Significance Of Online Banking
Online banking is very Convenience banking services. Banks are not available 24*7 for
the customers. E-banking offer 24-hours banking option with ease. Online banking offers
ease of access, secure transactions and eliminate runs to the bank to bank and to make
financial decision with update information.
Online banking allows you to transfer money between accounts much more quickly.it
make the use of phone and internet, and can save trip to the bank. It becomes easier to
transfer money and make loan payments online.
Banking Apps make the online banking easier and comfortable to its users. All the
information related to bank and their account will be display on the mobile on one click.
The things which most people dislike is about waiting in lines in the bank to deposit,
withdraw, or etc.by banking online, you don’t have to wait in line to get your baking
done, leaving you with more time to get other things done.
It is very easier handle our personal financial detail in an innovative way, consider
banking online. Online banking keeps track of our money much easier because our
account information is available anytime online. It deal or solve all the problems like
waiting for bank to open, having to visit an ATM, or calling a time consuming customer
services number to get some information.

1.3. Seven Best Online Features
1.3.1. Easy account creation
There was a time when the only way to open a bank account was in person. Nowadays,
it’s possible to complete the enrollment process from start to finish without ever leaving
your home. But the best part is that once you’ve made an account, additional accounts are
ever easier to create since the bank already has the necessary information in its database.
With multiple accounts, moving money between them is often free & without delay.
1.3.2. Electronic Statements
Traditional bill statements are annoying on two fronts. First, they unnecessarily clog up
your physical mailbox. Second, they’re a tremendous waste of paper. Of course switching
to email statements can still result in digital clutter, but deleting an email is far easier than
shredding paper. Plus, with apps like Google Inbox, it’s nice to be able to receive and
read your bill reminders no matter where you go.
1.3.3. Automatic Bill Payments
Most online banks allow you to link your bills directly to your account and have them
paid on time automatically. For every bill you set up, that’s one less thing you need to
juggle every month. That can add up to a lot of reduced stress. Automatic bill payment
should only be used if your balance is more than enough to cover all of your bills at any
given time.
1.3.4. Mobile Check Deposits
Many banks offer a feature called Mobile Check Deposits, though the precise name might
differ from bank to bank. The concept is simple: instead of physically visiting your local
bank branch to deposits a cheque, you can do it from home by uploading a photo of the
cheque(front & back).

1.3.5. Secure Message Alerts
One of the better reasons to use online banking is that you can receive notifications in
close to real-time. These notifications can be trivial or annoying at times, but they can
also save your life. If anything suspicious happens on your account, it’s incredibly
helpful to have an immediate alert since waiting too long can have disastrous
consequences. That being said, even the trivial alerts can be useful in the right situations.
1.3.6. Report & Management Tools
Prior to online banking, it was not exactly easy to get on- demand reports & summaries
for your account activity. Depending on the bank, there might even have been a fee
associated with retrieving that info. Yet, with online banking, it’s always one click away.
1.3.7. Desktop Software Integration
If you use Quicken to help manage your money, then online banking might make that
area of your life even easier. As long as your banks support your tool, you should be able
to integrate your bank account seamlessly with whatever desktop software you use.
1.4. Brief History
1.4.1. Indian Banking System
Banking in India originated in the first decade of 18 th 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 stated their Calcutta operations in the
1805s. At that point of time, Calcutta was the most active trading port, mainly due to the
trade of the British Empire, 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 the banks such as
Punjab National Bank, in 1895 in Lahore & 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.
The public sector emerged as the driver of economic growth consequent to the industrial
revolution in Europe. With the advent of globalization, the public sector faced new
challenges in the developed economies. No longer the public sector had the privilege of
operating in a seller’s market and had to face competition both from domestic and
international competitors. Further, in the second half of the 20 th century in the developed
economies, the political opinion started swinging towards the views that the intervention
as well as investment by government in commercial activities should be reduced to the
extent possible. 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 &
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 of the main reasons
of India’s growth process. The government’s regular policy for Indian bank since 1969
has paid rich dividends with the nationalization of 14 major private banks of India.
1.5. Electronic Banking And Its Evolution
Online banking was first started in 80’s. The term online became famous in the late 80’s.
Online banking during the formative years included usage at terminal, keyboard and TV
(or monitor) with an intention to approach the banking system using a phone line. Online
services started in New York in 1981 when four of the city’s major banks (Citibank,
chase Manhattan, chemical & manufacturers Hanover) offered home banking services

using the videotext system. Later on, the concept of videotext became popular in France.
In UK, first home online banking services were set up by the Nottingham Building
society (NBS) in the year 1983. It was based on the UK’s Prestel system and used a
computer, such as the BBC micro, or keyboard connected to the telephone system and
TV set. It provided customer an option to make bill payment for gas, electricity and
telephone companies and accounts with other banks. It was Stanford Federal Credit
Union which offered online internet banking services to all of its customers.
Internet banking refers to the use of internet as a remote delivery channel for banking
services such as opening a deposit account or transferring funds at different accounts etc.
Further, it is a desirable opportunity for banks where the key to success is customer
adoption. There is evolution in development of internet banking. At the basic level,
internet banking includes the setting up of a web page by a bank to give information
about its product and services. At an advance level, it involve provision of facilities such
as accessing accounts, fund transfer, enabling integrated sales of additional process and
access to other financial services such as investment and insurance. There is advantage
for customers as it provides opportunity to handle their banking transactions without
visiting bank tellers. The services through internet banking are e-tax payment; access the
account to check balance, online trading of shares, online remittance of money, electronic
bill payment system, railway reservation, transfer of fund from one customer’s account to
other, application of loan, etc. internet banking channel is convenient compared to bank
branch system because stakeholders can access their account at any time. Banks
leveraged the advantage of the internet by offering online services in recent years.

1.6. IT Revolution In Banking Sector
1.6.1. IT Is Pivotal
IT is central to banking. This is one of the major reasons why new private and multi-
national banks have been able to survive, thrive, and adapt in an increasingly competitive
space. These banks were able to leverage on low-cost channels such as ATMs and Net
banking to the optimum levels contributing to reduced operating costs. Banks have
realized that shifting customer access to lower cost channels can help bring down
operating costs.
"These channels are used not only to improve customer service but also to divert traffic
from the branches. It is a fact that the cost of transactions over these channels is lower
than doing this through the branches," says Rangesh Nayar, Country Manager-Financial
Services Sector, IBM.
But this does not mean that branch banking is obsolete. Rather, banks are reinventing
their business models to offer new financial services through its branches.
1.6.2. Seven New Banking Technologies

Fintech, mobile and new platforms are driving a digital transformation of the banking
industry. New technology in banking is already transforming the financial world, and the
traditional banking landscape is set to rapidly change in the next five years. Safety
features, such as advanced cryptography and biometrics, will help protect against bank
scams, and remote applications will make it easier than ever to do your banking without
ever visiting a branch — but if you do, the experience is likely to be much more
customer-friendly.
a. Blockchain Technology
Blockchain technology is set to fundamentally transform banking and financial services.

It decentralizes financial management from a central authority to a widespread network
of computers. Financial transactions are broken down into encrypted packets, or

“blocks,” which are then added to the “chain” of computer code and encrypted for
enhanced cyber security, it’s been compared to “email for money” by blockchain startup
CEO Blythe Masters. Because the technology has the potential to improve numerous
facets of banking and is the basis for other banking technology trends like Bitcoin.
b. Upgraded ATMS
ATMs transformed the banking system when they were first introduced in 1967. The next
revolution in ATMs is likely to involve contactless payments. Much like Apple Pay or
Google Wallet, soon you’ll be able to conduct contactless ATM transactions using a
smartphone. Some ATM innovations are already available overseas and might reach the
U.S. shortly.
c. Apple Store-Style Experience
The in-bank experience of the future might be more like shopping at an Apple store.
Because so many people now can download user-friendly banking apps or easily find an
ATM to handle basic banking transactions, the typical in-bank customer today is seeking
help involving a personal interaction. Banks hoping to increase sales in the future are
considering this transformation as a way for customers to engage more directly with the
bank and its products, just like in an Apple store, directing customers to interact with tech
kiosks for some transactions and reserving person-to-person interaction for answering
questions or addressing needs unique to the individual consumer.
d. Mobile and Digital Banking
The mobile and digital transformation in banking has only just begun and growth is
already explosive. Banks are investing heavily in digital banking technology, in which
customers use mobile, web or digital platforms to use banking services. In a Forbes
survey on banking customer engagement from late 2016, 86 percent of banks indicated
that these types of services represent their top technology investments.

1.7. Review Of Literature
Siaw, Irene; Yu, Alec (2004)1
The services through Internet banking are e-tax payment; access the account to check
balance, online trading of shares, online remittance of money, electronic bill payment
system, railway reservation, transfer of funds from one customer’s account to other,
application of loan, etc. Internet banking channel is convenient compared to bank branch
system because stakeholders can access their account at any time.
Khan MS, Mahapatra SS, Sreekumar (2009) 2
Identified six quality dimensions viz. reliability, accessibility, user-friendliness,

privacy/security, responsiveness and fulfillment. The study showed that customers were
satisfied with quality of service on five dimensions such as reliability, accessibility, user-
friendliness, privacy/security, responsiveness and fulfillment. They were least satisfied
with user- friendly dimension. The study also aimed at determining the service of banks
operative in India with regards to internet banking.
Kajal Chaudhary and Monika Sharma (2011) 3
The economic reforms in India started in early nineties, but their outcome is visible now.
Major changes took place in the function of banks in India only after LPG. It has become
very mandatory to study and to make a comparative analysis of services of Public sector
and private sector banks. Increased competition, new information technologies and
thereby declining processing costs, the erosion of product and geographic boundaries,
and less restrictive governmental regulations have all played a major role for public
sector banks in India to forcefully complete with private and foreign banks. This paper
made an attempt to analyze how efficiently public and private sector banks have been
managing NPA. They have used statistical tools for projection of trend.

Joshi P.V. & Bhalerao J.V. (2011)4
Banks deal with people’s most liquid Asset (cash), and run a country’s economy. The
banking system in India is significantly different from that of other nations because of the
country’s unique economic, social and geographic characteristics. There are high levels
of illiteracy among a large percentage of its population but, at the same time, the country
has a large reservoir of managerial and technologically advanced talents. Between about
30 to 35 percent of the population resides in metro and urban cities and the rest is spread
in several semi-urban and rural centers. The country’s economic policy framework
combines socialistic and capitalistic features with a heavy bias literature 41 towards
public sector investment. An efficient banking system contributes in an extensive way to
higher economic growth in the country.
Rakesh H.M. & ramya T.J. (2014)5
To examine the factors that influence internet banking adoption. Using PLS, a model is
successfully proved and it is found that the internet banking is influenced by its perceived
reliability, Perceived ease of use and perceived usefulness. In the marketing process of
interest banking service of internet banking services marketing expert should emphasize
these benefits its adoption provides and awareness can also be improved to attract
consumer’s attention to internet banking services.
Myla V Pilao (2014)6
“India posed for cybercriminal expansion with an average of 2.5 million malware
detection in a given month. Furthermore, 33% more malicious apps were downloaded,
network traffic from affected computers continued to rise and government- issued site
certificates for compromised Google domains. These and many such incidents show that
cybercriminals will always adapt to new trends and situations whether in the use of new
malware or targeted attacks techniques to continue their attacks.”

Neha Alawadhi (2015)7
India’s internet user base grew over 17% in the first 6 months of 2015 to 354 million,
according to the internet and mobile association of India. The mobile internet user base
grew to an estimated 213 million by June, from an estimated 173 million at the end of last
year of which 128 million users were from urban area and the rest 45 million from rural
India. Increase in local language content will lead to a growth of 39% in internet user
base, with rural India being the primary driver of this growth(75%) while urban India will
grow at 16%. The next set of internet users will come from rural india and the availability
of local language content on internet will be the key for the growth of internet industry in
India.
Economic Times Blog (2016)8
“Don’t underestimate e-banking capacity”, The RBI recently increased the limit for the
money that e-wallets can spend in a month, from Rs 10,000 to Rs 20,000. But for a
merchant, the amount he can receive is a measly Rs 50,000 a month from e-wallets. This
makes no sense whatsoever. There is no reason for any limit at all, as there is complete
traceability for the amounts the merchant receives into his e-wallet. This show of
excessive caution will prevent people from using prepaid payment instruments on the
scale they potentially can. It is self-defeating and should be removed.
Economic Times (2017)9
The RBI data shows that 8 e-wallets, including Paytm, mobiwik, freecharge, saw a loss in
their market share after November 8, 2016, when demonetization was announced. The e-
wallets saw maximum growth of 50% to 88 million transactions in December, and then
fell 1% in January, before falling another 10% in February to 78 million. However, bank
wallets, prepaid cards and vouchers saw a growth of 57% in December to 173 million and
the post-demonetization saw growth of 20% to 208.5 million in January.

Express computer, (2017)10
Forrester evaluated the retail mobile banking services of 7 large retail banks In India:
Axis Bank, HDFC Bank, ICICI Bank, Indusind Bank, Kotak Mahindra Bank, SBI, & Yes
Bank. This year’s evaluation rated the Indian banks on both functionality and usability.
Forrester released its 2017 mobile banking benchmark report at its Digital
Transformation India Forum, which has ICICI bank receiving the highest overall scores
for both functionality and usability.
1.8. Research Methodology
1.8.1. Data Collection:
The objective of the project is such that both primary and secondary data is required to
achieve them. So both primary and secondary data is used for this project. The mode of
collecting primary data is questionnaire mode and a source of secondary data is various
magazines, books, newspapers and websites, etc.
Primary Data: The primary data is collected through questionnaire prepared that is
circulated within a sample of 50 respondents randomly selected.
Secondary Data: The secondary data is the other hand data which is collected through
various published books, magazines, articles, newspaper, etc.
1.8.2. Technique Of Analysis:
The questionnaire prepared for the customers of the SBI & ICICI bank to know their
satisfaction level. The data collected through questionnaire is analyzed by techniques like
mean, median, mode, standard deviation which is presented in tabular form and by graphs
such as bar graphs, pie charts, etc.

1.8.3. Sample Size:
50 respondents are selected randomly from Mumbai City.
The selection of sample size was based on following criteria:
 Respondent are having their account with SBI and ICICI bank.
 Personal Interview
 Direct survey method
 Random sampling method is used
 Structured Questionnaire – Open-ended, Closed-ended
1.9. Objectives Of The Study
The prepared project is based on the following objectives:
 To study the financial performance of SBI and ICICI banks.

 To know and compare overall satisfaction of customers regarding banking
services.
 To study the market position of both the banks.
 To study the customers relationship with the bank.
 To study how far the customers are aware about online services and other services
provided by banks.
1.10. Limitation of The Study

 The study is limited to the comparison of SBI & ICICI online banking services.
 The study is conducted and information is collected through questionnaire.
 The study is limited to a specify area or region of Mumbai.
 Limited to the age group 20 to 30, who use online banking services.
 The sample size is limited to 50 respondents, who have their accounts with SBI
and ICICI bank.

1.11. Chapter Schemes
Following are the six chapters covered under this project:
Chapters Title
Introduction & research design
1
Profile of SBI bank
2
3 Profile of ICICI bank
4 Data Analysis & interpretation
5 Summary, Major observation, suggestion & conclusion
Bibliography

References
1. Siaw, Irene; Yu, Alec (2004): An analysis of the impact of the internet on
competition in the banking industry, using porter's five forces model.
International Journal of Management 21: 514-522.
2. Khan MS, Mahapatra SS, Sreekumar (2009): Service Quality Evaluation in

Internet Banking: An Empirical Study in India. International Journal of Indian
Culture and Business Management 2: 30-46.
3. Kajal Chaudhary and Monika Sharma(2011): “ Performance of Indian Public

Sector Banks and Private Sector Banks: A Comparative Study”, International
Journal of Innovation, Management and Technology, Vol. 2, No. 3, June 2011
http://www.ijimat.org/papers
4. Joshi P.V. & Bhalerao J. V.(2011): “Efficiency evaluation of banking sector in

India based on data envelopment analysis”, Indian Journal of Commerce &
Management Studies, Vol–II , Issue -3 March 2011
www.ijcms.com/bankingservicesinindia
5. Rakesh H M & Ramya T J (2014) : “A Study on Factors Influencing Consumer

Adoption of Internet Banking in India”
6. Myla V pilao, Director, TreadLabs: “India among top three nations most
affected by online banking malware: Trend Micro”, Express News Service
(2014),
http://computer.expressbpd.com/news/india-among-top-three-nations-most-
affected-by-online-banking- malware-trend- micro/2698
7. Economic Times, 2015: “India’s internet user base 354 million, registers 17%
growth in first 6 months of 2015: IAMAI report”.
www.articles.economictimes.indiatimes.com
8. Economic Times Blog (2016): “Don’t underestimate e-banking capacity”.
www.blogs.economictimes.indiatimes.com/et-editorials/dont-underestimate-e-
banking.com

9. Economic Times (2017): “Banks Apps Regain ground, grow faster than E-
Wallets”, by Rachel.Chitra
https://m.economictimes.com/topic/e-banking
10. Express computer (2017): “Forrester: ICICI bank leads 2017 India mobile
banking benchmark”.
http://computer.expressbpd.com/news/forrester-icici-bank-leads-2017-india-
mobile-banking-benchmark/21611
******************************************************************

CHAPTER II

CHAPTER II
PROFILE OF STATE BANK OF INDIA (SBI)
2. Introduction
State Bank of India (SBI) is an Indian multinational, public sector banking and financial
services company. It is a government-owned corporation with its headquarters
in Mumbai, Maharashtra. On 1st April, 2017, State Bank of India, which is India's largest
Bank merged with five of its Associate Banks (State Bank of Bikaner & Jaipur, State
Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of
Travancore) and Bharatiya Mahila Bank with itself. This is the first ever large scale
consolidation in the Indian Banking Industry. With the merger, State Bank of India will
enter the league of top 50 global banks with a balance sheet size of ₹33 trillion, 278,000
employees, 420 million customers, and more than 24,000 branches and 59,000 ATMs.
SBI's market share will increase to 22 percent from 17 per cent. It has 198 offices in 37
countries; 301 correspondents in 72 countries. The company is ranked 232nd on the
Fortune Global 500 list of the world's biggest corporations as of 2016. SBI trade as NSE:
SBIN, BSE: 500112, LSE: SBID, BSE SENSEX constituent.
SBI provide various products to their customer such as consumer banking, finance and
insurance, investment banking, mortgage loans, private banking, private equity, savings,
securities, assets management, wealth management, credit cards.
2.1. Subsidiaries of SBI
The State Bank Group includes a network of 8 banking subsidiaries and several non-
banking subsidiaries offering merchant banking services, fund management, factoring
services, primary dealership in government securities, credit cards and insurance.

The 8 banking subsidiaries are:
Diagram 2.1
Subsidiaries of SBI
State bank of
Bikaner &
Jaipur (SBBJ)
State bank of State bank of

Travancore Hyderabad
(SBT) (SBH)
State bank of Subsidiaries State bank of

Saurashtra
(SBS) of SBI India (SBI)
State bank State bank of

of Patiala Indore (SBIR)
(SBP)
State bank of
Mysore
(SBM)
2.2. Brief History
The bank traces its ancestry to British India, through the Imperial Bank of India, to the
founding, in 1806, of the Bank of Calcutta, making it the oldest commercial bank in
the Indian subcontinent. Bank of Madras merged into the other two "presidency banks" in
British India, Bank of Calcutta and Bank of Bombay, to form the Imperial Bank of India,
which in turn became the State Bank of India in 1955. Government of India owned the
Imperial Bank of India in 1955, with Reserve Bank of India (India's Central Bank) taking
a 60% stake, and renamed it the State Bank of India. In 2008, the government took over
the stake held by the Reserve Bank of India. The RBI has now clarified that State Bank of
Indore units will begin functioning as State Bank of India branches a day earlier. "This is
due to the fact that the Order of Acquisition will be effective on and from the close of
business on August 25, 2010 and not August 26, 2010 as announced earlier,” RBI said.
June 29, 2007: the government of India acquired the entire Reserve Bank of India (RBI)
shareholding in State Bank of India (SBI), consisting of over 314 million equity shares at
a total amount of over 355 billion rupees. State Bank of India is a banking behemoth and
has 20% market share in deposits and loans among Indian commercial banks.
2.3. Internet Banking
Internet banking solutions cater to the various payments, fund- transfers, e-Tendering, e-
Auction & bulk payments related requirements of the government/ PSUs/large & medium
corporate as well for retail internet banking (RINB) customers. The corporate internet
banking (CINB) is well suited to small, medium & large corporate. It has also been
immensely successful in establishing traction with government Treasury & Accounts
Departments. Online collection of fees/funds for institutions, corporate & government
departments is being facilitated through multi Option Payment System (MOPS) & State
Bank Collect. Merch ant-acquisition is facilitated through aggregators.
This cost-effective channel has enabled more than 140 crore transactions during FY2017,
achieving 12.9% growth over the previous year. SBI bank’s robust Retail Internet
Banking (RINB) platform has also been optimized for visually impaired customers
following WCAG (Web Content accessibility Guideliness) During FY2017, SBI bank
has continued to be a major player in the e-commerce space in the country. Over 50,027
merchant tie-ups were done, directly or via State Bank Collect/ e-commerce aggregators.
SBI bank has facilitated more than 37 crore e-Commerce transactions up to 31st March
2017.

Some of the new features launched in Net Banking during FY2017 are as follows:
a. Online PAN Updating

b. Online OD for e-commerce purchases(flip kart)
c. Submission of stock statement through CINB
d. Direct integration with 102 merchants/ government departmets
e. NPS online account opening
f. Personalized image based Gift Card Issuance Facility
g. Online locker enquiry
h. Mobile number registration in CBS through Contact Center
2.4. Corporate Social Responsibility (CSR)
SBI has a comprehensive CSR policy approved by the Board and the focus areas are
Supporting Education, Entrepreneur development & Health care, Assistance to Poor
and under privileged, Environmental protection, clean energy, and help in National
calamities.
For the financial year 2012-13, SBI earmarked Rs.117.07 crore i.e. 1% of SBI’s
previous year profit for CSR activity. During the current financial year, the Bank has
extended financial assistance for 300 Ambulance Vans to needy and service
organizations, 42,000 water purifiers and 1, 40,000 ceiling fans to more than fifty
thousand schools to provide clean water and conducive climate to school
children. Under health care activities SBI has extended assistance to a tune of Rs. 14
Crores for support to hospitals in the form of Medical equipment’s and others.
SBI is always in forefront to help states affected by natural calamities. During the
current fiscal SBI has lent its helping hand to the States of Assam, Sikkim, Uttarkhand,
Maharashtra etc. with donation to Chief Minister’s Relief fund to respective States to
provide succor to the people affected by flood to a tune of Rs.9.00 Crore.

The Bank has constituted SBI’s Children’s Welfare scheme as a trust in 1983.The
corpus of the fund is made up of contribution by staff members with equal contribution
by the Bank. The Bank extends grants from this fund to institutions engaged in the
welfare of under privileged / downtrodden children like orphans, destitute, challenged
and deprived etc.
CSR is not an isolated practice or initiative for STATE BANK OF INDIA but runs
through its entire business paradigm.
2.5. Products & Services Offered By SBI
2.5.1. Personal Banking
State Bank of India provides personal banking services to meet the savings, investment
and finance needs of its customers.
 Savings:
State Bank of India enables opening of savings account to meet the needs of all
categories of customers ranging from general saving accounts to a premium/priority
accounts. The key features of the savings deposit schemes provided by SBI is a Savings
account can be opened with no minimum balance requirement under the ‘No Frills
Account’ option or the account holder can opt for premium accounts under the State
Bank of India– MOD (Multi option Deposit scheme). Under the MOD scheme operated
by the bank, a minimum balance of Rs. 25,000 needs to be maintained in the account.
Any amount in excess of this is ‘Auto’ transferred in units of Rs. 1,000 and deposited into
a term deposit with minimum balance of Rs. 10,000, which enables the account holder to
earn a higher rate of interest on his/her deposit.

 Deposits:
The deployment of excess funds in the account can be channelized to generate further
wealth by way of various deposit schemes provided by the bank. Some of the features of
the ‘Term Deposit’ account that can be opened with this public sector bank are:
 Term deposit can be opened with a basic minimum amount of Rs.1, 000/-, with no
limit on the maximum amount.
 Tenure of the deposit can range from 7 days to 10 years.

 Payment of interest as per bank rules and type of account.
 Senior citizens earn an additional interest of 0.25% on such term deposit.
 Pre-mature Withdrawal: Retail term deposits can be pre-maturely withdrawn
however, various penalties may be applicable.
2.5.2. Cards
 Debit Cards : State Bank of India provides debit cards starting from classic debit
cards to enable account holder to shop, book tickets or withdraw cash. The Bank
provides International debit cards for the convenience of individuals who travel
outside the country often. The maximum amount of transaction that can be done
varies for Silver, Gold and Platinum International debit cards.
 Contactless Debit Card: SBI INTOUCH Tap and Go debit card is based on
Near Field Technology and uses contactless technology to transmit purchase
information to and from a contactless reader. The card is a multi-purpose
international debit card that can be used by the holder to make payments at any
merchant outlet which support contactless transactions.

 SBI Mumbai Metro Combo Card: The card is designed especially for
Mumbaiker commuting using the Mumbai Metro. The card can be used at Mumbai
Metro stations to pay for metro tickets as well as for shopping at various merchant
outlets.
 SBI Business Debit Card: These cards are designed for non- individual business
clients of the bank. The card enables the holder to make online payments and travel
cash free internationally. SBI Business Debit Card ensures high level of security from
card frauds as it uses the highly secure EVM chip.
 SBI Prepaid Debit cards : State Bank of India offers various pre-paid card
options. State Bank Gift Cards need to be loaded with an amount of at least Rs. 500 to
a maximum of Rs.50,000 and can be a great gift to near and dear ones. The cards
have a validity of 3 years. State Bank Foreign Travel Card is a pre-loaded card which
is available in 8 foreign currencies. The card is issued on validation of passport and
other travel documents.
2.5.3. Technology
The Bank has used cutting-edge technology to service its clients efficiently. The various
facilities provided by the bank include:
Online Personal Banking services : The Bank provides online account access to
its customers via its banking portal. The account holders can login and operate their
account with this portal.
Individual Account holders
Some of the operations that can be executed through the online portal are:
 Opening a SBI Fixed Deposit Account or SBI Recurring Deposit Account

 Making Third party transfers via NEFT, RTGS, VISA Pay or IMPS
 Making Utility Bill payments

 Request for issuance of a new cheque book/stop check/hotlist debit card, etc.
 Apply for a loan by filling out the online application
This has made banking transaction speedy, with no need to visit the branch.
Mobile Banking Services : With banking literally at your fingertips, the bank
provides mobile service application to mobile users of Android and iPhone smartphones.
This ensures 24X7 online access and checking of balance, transfer of funds through
IMPS, mobile payments and more.
State Bank of India has introduced the Mobile Wallet - ‘State Bank Buddy’ which can be
easily downloaded on your mobile. The wallet can be loaded using debit card, internet
banking or IMPS.
mCash: This is the facility to transfer cash available on the online portal of State Bank
of India and the mobile application. The account holder can transfer the money without
adding a beneficiary. The account holder transfers the money using the beneficiaries’
mobile number or E- mail Id. The beneficiary would receive a communication of the
funds and a password, which is used to claim the funds.
2.6. What’s New In SBI Product & Service
2.6.1. Loan against Shares
Leverage SBI investments in shares for loans to meet unforeseen expenses!! Avail of
loans up to Rs.20.00 lakhs against your shares to enable you to meet contingencies,
personal needs or even for subscribing to rights or new issue of shares.
This facility is available to our existing individual customers enjoying a past satisfactory
relationship with SBI and maintaining their DEMAT Account with SBI Cap Sec. It is
offered as an Overdraft or Demand Loan. Loan can only be availed in single name. NRIs
are currently not eligible for this loan.

2.6.2. State Bank’s Tech Learning Centers (TLCs) For Customers
Another initiative taken by the Bank is to empower their customers through technology &
awareness. The interactive learning session will take the customer through the how’s &
why’s of Bank Alternative Banking- channels: Net Banking, Mobile Banking, Green
Channel, ATMs, CDMs, Plastic Banking (cards) , Pass Book digital- printing & more.
2.6.3. SBI Cards To Debut Contactless Payments
SBI Card customers could soon make payments by merely tapping their smartphone on a
swipe machine. SBI Card is updating its mobile application to enable customers make
contactless payments at point of sales (PoS) terminals using a technology called Host
Card Emulation (HCE) which enables dematerialization of the card. Cardholders of the
bank already use smartphones as an alternative for cards on the Samsung Pay platform
and the bank will next month launch its proprietary application which enables
virtualization of the card in a smartphone using near- field communication (NFC).

2.7. Awards & Achievements Of SBI
 State Bank of India Voted THE BEST BANK in Cash Management Services in
local currency by Asia Money.
 State Bank of India wins 2 awards for Best Rural Banking Initiative and Best IT
Architecture
 SBI has been rated as the Best Public Sector Bank for Rural Reach by Dun &
Bradstreet.
 Golden Peacock Award for Sustainability, London

 Golden Peacock Award for Corporate Social Responsibility, Mumbai
 Indo - American Chamber of Commerce Best Bank Award, Mumbai
 Global Finance Magazine, New York 'Best Emerging Markets Bank in Asia
Pacific 2015' Award
 World Branding Forum, London 'Brand of The Year Award'

 BFSI Environmental Award, Singapore
 CMO Asia Award for Best CSR Practices, Mumbai
 Business World Magazine 'Socially Responsible Bank' Award, Mumbai
 Golden Globe Tigers Awards for CSR best Practices & Innovations in CSR. -
Kuala Lumpur.

2.8. Moving Away From Cash To Digital
Graph 2.5
Share of digital transactions grew from 74% as on March 2016 to 77% as on March
2017
MARCH-16
26% 23%
INTERNET BANKING
POS
5% MOBILE BANKING
ATM/CDM
3% BRANCH
43%
MARCH-17
INTERNET BANKING
23% 27% POS
MOBILE BANKING
ATM/CDM
BRANCH
9%
37%
4%
SOURCE: annual report of SBI 2016-17

2.9. Promoter of SBI
Table 2.1
Promoter of SBI, 2017
Share Holding Pattern (% of Shares Held)
Percentage
Total Number of
Category Of Shareholder Shareholding
Shares
(%)
Promoter
Indian Promoter 4,92,65,93,562 57.97
Foreign Promoter 0 0.00
Total Promoter 4,92,65,93,562 57.97
Non Promoter
Institutions
Mutual Funds / UTI 80,61,57,766 9.49
FI/Bank/Insurance 1,01,41,86,162 11.93
Govt. 30,75,617 0.04
FII 0 0.00
Other 97,77,91,153 11.50
Total Institutions 2,80,12,10,698 32.96
Non-Institution
Bodies Corporate 18,58,41,066 2.19
Individuals (upto Rs. 1 lakh) 50,46,53,255 5.94
Individuals (in excess of Rs.
1,72,06,506 0.20
1 lakh)
NRIs/OCBs 1,83,40,311 0.21
Others 56,70,94,956 6.67
Total Non-Institution 77,12,76,333 9.07
Total Non-Promoter 3,57,24,87,031 42.03
Depository Receipts 13,29,69,800 0.00
Total 8,63,20,50,393 100.00
Source: NDTVProfit

2.10. Performance of SBI (2013-2017)
Table no. 2.2

Performance of SBI
Years
March
Particular 13 March 14 March 15 March 16 March 17
2,044,751.3
1,202,7395 1,394,408.5 1,576,793.2 1,730,722.4
9
Deposits 7 (-98.84) (13.07%) (9.76%)
(15.35%)
183,130.88 205,150.29 224,190.59 3,17,693.6

169,182.71
Borrowing (8.24%) (12.02%) (9.28%) (15.35%)
Cash &
84,955.66 115,883.84 1,29,629.33 1,27,997.62
balances 65,830.41
(29.05%) (36.40%) (10.60%) (-1.27%)
with RBI
Balances
with banks, 47,593.97 58,977.46 37,838.33 43,974.03
48,989.75
money at (-2.8%) (23.91%) (-35.84%) (13.95%)
call
1,209,026.3 1,571,078.3
1,045,616. 1,300,326.39 1,463,700.42
9 8
Advance 5 (7.55%) (12.56%)
(15.63%) (6.83%)
Employees 18,380.90 22,504.28 23,537.07 25,113.83 26,489.28

cost (18.32%) (24.28%) (-3.62%) (37.71%)
398,308.19 495,027.40 477,097.28 765,989.63

350,927.27
Investments (13.50%) (4.58%) (6.69%) (5.19%)
No. of 84,955.66 115,883.84 129,629.33 127,997.62

65,830.41
branches (29.0%) (36.40%) (11.86%) (-1.27%)
Total 117,535.68 127,691.65 143,498.16 187,488.7

Reserves 98,199.65
(19.69%) (8.64%) (12.37%) (23.46%)
and Surplus
Source: Annual Report of SBI 2016-17

It is observe from above table 2.2:
Deposit:
 In 2013 to 2014, there is a negative change or negative growth in deposit i.e. (-
98.84).
 From 2.13 to 2017, the highest change or growth in deposit occur in 2017 i.e.
15.35%
Borrowing:
 The borrowing/debt is kept on growing form 2013 to 2017 by 8.24%, 12.02%,
9.28%, and 15.35% respectively.
Cash & Balance with RBI:

 Cash and balance with RBI is kept on increasing from 2013 to 2015 by 29.05% &
36.40%.
 But from 2016 to 2017 it decrease from 10.60% to (-1.27%).
Balances with banks, money at call

 In balances with banks, money at call is rapidly changing in every year.
 In 2014, it has negative or less deposit than in 2013.i.e. (-2.8%).
 In 2015, it increases by 23.91%.
 But in 2016, it fall by 35.84%.
 In 2017, 13.95% growth in balances with other banks & money at call.
Advance :
 The percentage change in advance is keep on going down from 2015 to 2017.
 Only in 2014 the change in advance from 2013 to 2014 is15.63%.
Employees cost:
 Employees cost is keep on increasing form 2013to 2015. But in 2016 it is
increase by negative rate i.e. (-3.62%).
 But in 2017 it is change by 37.71%

Investments :
 SBI increase investments at a lower rate i.e.13.50%, 4.58%, 6.69%, and 5.19%
respectively.
No. of branches:
 No. of branches keep on increasing but from 2013 to 2015 at a highest rate &
from 2016 to 2017 at a lower rate.
Total reserve & surplus:

 The percentage change in total reserve & surplus is highest in 2017 i.e. 23.46%.
Conclusion:
In this chapter, we have studied that SBI is the first ever large scale consolidation in the
Indian Banking Industry, they offer best quality of product and services to the customer
to gain there trust. We studied how they contribute towards corporate social
responsibility, Awards and Achievements in 2016-17. Also analysis the performances of
SBI of past five year and discuss about the promoter of SBI.
******************************************************************

CHAPTER III

CHAPTER III
PROFILE OF INDUSTRIAL CREDIT & INVESTMENT

CORPORATION OF INDIA BANK (ICICI)
3. Introduction
ICICI Bank (Industrial Credit & Investment Corporation of India) is an Indian

multinational banking and financial service company headquartered in Mumbai,
Maharashtra, India, with its registered office in Vadodara. In 2014, it was the second
largest bank in India in terms of assets and third in term of market capitalization. It offers
a wide range of banking product and financial service for corporate and retail customer
through a variety of delivery channels and specialized subsidiaries in the areas of
investment banking, life, non-life insurance, venture capital and asset management. The
bank has a network of 4850 branches and 14404 ATMs in India, and has a presence in 19
counties including India.
The bank has subsidiaries in the United Kingdom and Canada; branches in united states,
Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar, Oman, Dubai international Finance
Centre, China and South Africa; and representative office in United Arab Emirates,
Bangladesh, Malaysia and Indonesia. The company’s UK subsidiary has also established
branches in Belgium and Germany.
ICICI Bank is India’s largest private sector bank with total consolidated assets of Rs.
9,860.43 billion (US $ 152.0 billion) at March 31, 2017 & profit after tax of Rs. 98.01
billion (US $ 1.5 billion) for the year ended March 31, 2017. ICICI Bank currently has a
network of 4,850 branches & 13,942 ATM’s across India.
ICICI provide various products to their customers like credit cards, consumer banking,
finance & insurance, investment banking, mortgage loans, private banking, wealth
management, personal loans, payments solution.

Table 3.1
Total assets & total equity of ICICI in 2017
Total assets US$119.0 billion (2017)
Total equity US$15.4 billion (2017)
3.1. Brief History
ICICI Bank was originally promoted in 1994 by ICICI limited, an India financial
institution, & was its wholly- owned subsidiary. ICICI’s shareholding in ICICI bank was
reduced to 46% through a public offering of shares in India in 1998, followed by an
equity offering in the form of American depositary Receipts on the NYSE in 2000. ICICI
Bank acquired the Bank of Madura limited in an all- stock deal in 2001 & sold additional
stakes to institutional inventors during 2001-02. ICICI was formed in 1955 at the
initiative of the World Bank, the Government of India & representatives of Indian
industry. The principal objective was to create a development financial institution for
providing medium-term & long-term project financial institution for providing medium-
term & 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 &
affiliates like ICICI Bank. In 1999, ICICI become the first Indian company & 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 & 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. In October 2001, the Boards of Director of ICICI and ICICI bank
approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries,
ICICI personal financial services limited & ICICI Capital Services Limited, with ICICI
Bank. The merger was approved by shareholders of ICICI & ICICI bank in January 2002,
by the high court of Gujarat at Ahmedabad in March 2002, & by the high court of
judicature at Mumbai & the RBI in April 2002. Consequent to the merger, the ICICI
group’s financing & banking operations, both wholesale & retail, have been integrated in
a single entity.
3.2. Products & Services Provide By ICICI Bank
3.2.1. Saving Account
Saving account delight customers with rewards, security and ease of banking.
 No minimum balance requirement
 Complete waiver of charges on demand drafts, pay orders and anywhere banking
facilities
 Complimentary and personalized international debit card
 Internet banking – avoid the queue or delays and try simple and secure internet
banking facility for an unmatched online banking experience
 Customer care – ICICI customer care services is always available to address your
queries
 Mobile banking – a quick, simple and convenient way to take command of
customers bank account securely , anytime , anywhere
 Nomination facility – customers may nominate a person as beneficiary to
customer’s account proceeds.
3.2.2. Family Wealth Account

A wealth of privileges has been designed to take care of customer’s family. ICICI offer
customers a comprehensive suite of products and services tailored for exclusive

customers like you. To get started, customer need to is start a family banking relationship
with ICICI Bank.
At least one of the members of customer’s family should hold a wealth management
account with ICICI Bank and this premium service will be extended to all the members in
the family
3.2.3. Home Loan

 Dedicated team of experts to guide customers through the property purchase
process
 Home loan suited as per customer’s needs.

 Home loan tenure up to 20 years
 Simplified documentation
 Doorsteps delivery of home loan papers
 Loan approved even before the property is selected
3.2.4. Car Loans
The car loans from ICICI Bank are designed to finance customer’s dream car that suits
their status and taste. Following are the benefits when customers choose a car loan from
ICICI and be rest assured of pleasant journey.
 Get loans up to 90% of the ex-showroom price of the car

 Car loans offer attractive interest rates to ensure they have a smooth drive
 New car loans are offered with fixed interest rates during the tenure of the loan
 Repayment of car loans tenure up to 60 months
3.2.5. Foreign Exchange Services
Embark on hassle-free vacations with world class forex solution. Experience utmost
convenience and service excellence when customers choose foreign currency, Travellers

Cheques and travel card for foreign exchange needs. Whether the customer travel for
holiday or for business. ICICI offer efficient solutions with the assurance of prompt
delivery of foreign exchange at their doorstep.
3.2.6. Demat Account
Enjoy 24x7 accesses to transfer securities through the internet and interactive voice
response (IVR). Now customers can receive their account statement and bill by e-mail
and track their dividend, interest and bonus through the account statement.
3.3. What’s New In ICICI
3.3.1. Payment Summary Widget
As more and more of daily transactions move online & become more frequent, it’s
getting difficult to keep a tab on upcoming bills, standing instructions and payments
made in the past by the bank. That’s why ICICI introduced a Payment Summary Widget
which gives the customer a summary of their upcoming bills, scheduled auto pay
transactions & transactions made in the last 30 days through internet banking, e-mobile &
pockets.
3.3.2. Introducing Super Search
To find what customer need quickly, ICICI are pleased to introduce a search feature
within internet banking. Which call SUPER SEARCH because it searches with super
power! Not only does it find what customer needed or searching for but also lets initiate
transactions directly from within the search.
For example: try searching for funds transfer directly from within the search for funds
transfer using IMPS – payee will automatically appear within the search. ICICI is
continuously working on super search to include more services.

3.3.3. ICICI Bank Ltd Launches ‘Video Banking’ For NRI
In February 2015, ICICI bank announced the launch of ‘video banking, for its entire NRI
(Non Resident India) customer. Using these services, the customer can now connect with
a customer care representative over a video call, round-the-clock, on all days from
anywhere using their smart phone.
3.3.4. Money 2 India
Money 2 India (www.money 2india.com) is an online money transfer tracking services

offered to Non-Resident Indians by ICICI Banking Ltd. With an even-expanding base
since its launch, it is the preferred mode of online money transfer to India, facilitating
seamless money transfer with round the clock service availability. To use these services,
a user needs to complete a single one time online registration by accessing
www.money2india .com and can thereafter, start sending money from any bank in 9
countries (USA Canada UK Singapore Australia UAE Sweden Switzerland and Hong
Kong) to any beneficiary account with the 100 banks in India.
3.4. Corporate Social Responsibility Of ICICI
Corporate Social Responsibility (CSR) is the commitment of companies to provide

resources and support activities focused on enhancing economic and social development.
It is the effort made by companies to improve the living conditions of the local area in
which they operate and the society at large. The activities taken up as part of corporate
social responsibility reflect the intent to create a positive impact on society without
seeking any commensurate monetary benefits.
ICICI Bank Limited established the ICICI Foundation for Inclusive Growth (“ICICI
Foundation”) in 2008 with a view to significantly expand the ICICI Group’s activities in
the area of CSR. ICICI Venture’s objective is to pro-actively support meaningful socio-
economic development in India and enable a larger number of people to participate in and
benefit from India’s economic progress. This is based on the belief that growth and
development are effective only when they result in wider access to opportunities and

benefit a broader section of society. ICICI Venture aims to identify critical areas of
development that require investments and intervention, and which can help to realize
India’s potential for growth and prosperity.
3.4.1. Corporate Social Responsibility Activities of ICICI
Diagram 3.1
Corporate Social Responsibility Activities of ICICI
Education
Capacity building
for corporate Health
social
responsibility
care
Corporate
Social
Responsibility
Activities
Support Skill
employee development
engagement in and sustainable
CSR activities livelihoods
Financial
inclusion

3.5. Awards & Achievements Of ICICI Bank
 ICICI Bank was felicitated as one of the winners of the Best Performance Award from
NABARD for initiatives implemented under its Self Help Group (SHG) Bank Linkages
Programmed in Tamil Nadu for financial year 2017. The bank has won this award for
three years in a row.
 ICICI Bank won the award in the ‘Best Private Sector Bank - Rural Reach’ category at
the ‘Dun & Bradstreet Banking Awards 2017.
 ICICI Bank won the award in the ‘Analytics & Big Data’ category at the IDRBT Banking
Technology Excellence Award for 2016 - 2017. The awards are organized by the Institute
for Development & Research in Banking Technology (IDRBT), an institute established
by the Reserve Bank of India (RBI).
 ICICI Bank won the award in the ‘End Users of IT’ category for Chatbot on iMobile and
Software Robotics at the IMC Digital Technology Awards 2016
 ICICI Bank emerged as the ‘Best Bank for SMEs’ at the Asia money India Banking
Awards 2017. The Bank has won this award for its automation initiative ‘COLORS’
(Corporate Loan Origination System). A COLOR is a system deployed within the Bank.
It has an end-to-end automated workflow right from logging in an application to
disbursing the loan to SMEs.
 ICICI Bank won the Gold Award in the ‘Banks and Credit Cards’ category, as per the
Readers Digest Trusted Brand Survey 2017.
 ICICI Bank won the ‘Best Retail Bank in India’ award for the fourth consecutive year at
the Asian Banker Excellence in Retail Financial Services International Awards 2017.
 ICICI Foundation won the 'Best CSR & Sustainability Practices Award for 2016' at the
4th Asia Business Responsibility summit.

3.6. Promoter of ICICI
Table 3.2
Promoter of ICICI in 2017
Share Holding Pattern (% of Shares Held)
Total Number of Percentage
Category of shareholder
Share Shareholding (%)
Promoter
Indian Promoter 0 0.00
Foreign Promoter 0 0.00
Total Promoter 0 0.00
Non Promoter
Institutions
Mutual Funds / UTI 99,64,11,653 20.74
FI/Bank/Insurance 91,33,76,805 19.01
Govt. 1,11,58,549 0.23
FII 0 0.00
Other 2,28,45,48,061 47.57
Total Institutions 4,20,54,95,068 87.55
Non-Institution
Bodies Corporate 18,57,53,869 3.87
Individuals (upto Rs.1 lakh) 32,52,03,383 6.77
Individuals (in excess of Rs.1
4,51,97,263 0.94
lakh)
NRIs/OCBs 2,04,20,548 0.42

Others 39,16,74,232 8.16

Total Non-Institution 59,78,48,649 12.45
Total Non-Promoter 4,80,33,43,717 100.00
Depository Receipts 1,60,94,86,267 0.00
Total 6,41,28,29,984 100.00
Source: NDTVProfit

3.7. Performances Of ICICI (2013-2017)

Table 3.3
Performance of ICICI
Year
March 13 March 14 March 15 March 16 March 17
Particular
331,913.66 361,562.73 421,425.71 490,039.06

Deposits 292,613.6
13.43(%) (8.93%) (16.55%) (16.28%)
154,759.05 172,417.35 174,807.38 147,556.15

Borrowings 145,341.4
(6.47%) (11.41%) (1.38%) (-15.58%)
Cash &
21,821.83 25,652.91 27,106.09 31,702.41
Balances With 19,052.73
(14.53%) (17.55%) (5.66%) (16.95%)
RBI
Balances With
19,707.77 16,651.71 32,762.65 44,010.66
Banks, Money 22,249.44
(-11.42%) (-15.5%) (96.75%) (34.33%)
At Call
338,702.65 387,522.07 435,263.94 464,232.08

Advances 290,249.4
(16.69%) (14.41%) (12.31%) (6.65%)
177,021.82 186,580.03 160,411.80 161,506.55

Investment 171,393.6
(3.28%) (5.39%) (-14.02%) (0.68%)
Employees 6.57
4.48 7.44 6.70 6.26(6.56%
Stock Option
(46.65%) (13.24%) (9.94%) )
No. Of 3,753.00 4050.00 4450.00 4850.00

3100.00
Branches
(21.06%) (7.91%) (9.87%) (8.98%)
Source: annual report of ICICI

It is observe from the above table 3.3:
Deposit
 Deposit of ICICI goes on increasing from 2013 to 2017 i.e. from 292613.63 to
490039.06 Crore.
 The highest growth is in 2016 i.e. 16.55%.
Borrowings:
 The borrowing of ICICI is low in March 2017 than in other year.it has a
negative change i.e. -15.58%.
Cash & Balances with RBI:
 In 2017, the cash & balance of ICICI is 317.2041 Crore

 The change in growth of deposit with RBI is higher in 2015 than 2017, which
is 17.55% > 16.95% respectively.
Balances with banks, money at call:
 The highest growth in balance with other banks & money at call is in 2016 i.e.
96.75% .
 But in 2014 & 2015, there is a negative growth.
Advance
 In 2017, the increase in advance is lower than 2016 i.e. 6.65% in 2017 &
12.31% in 2016.
Investment
 The investment in ICICI is goes on increasing at the small rate, as shown in

table 3.7.
 The rate of percentage change in growth is negative in 2016.

Employee’s stock option
 The highest change in growth in employees stock option is occur in 2014 i.e.
46.65%.
 In 2017, the increase in stock option is lower than in 2016.
No. of branches:
 In 2017, the No. of branches is of 4850.00 Cr. But the change in growth is
highest in 2014 which is 21.06%.
Conclusion:
In this chapter, we have studied that, ICICI Bank (Industrial Credit & Investment
Corporation of India) is an Indian multinational banking and financial service company.
They offer quality of product and services to the customer. We studied about the
contribution made by ICICI in corporate social responsibility, Awards and Achievements
in 2016-17. Also analysis the performances of ICICI bank from 2013 to 2016 and discuss
about the promoter of ICICI.
*************************************************

CHAPTER IV

CHAPTER IV
ANALYSIS OF SURVEY ON QUALITY OF ONLINE BANKING

SERVICES OF SBI & ICICI
4. Introduction:
The research project has set up a 25 questions questionnaires so as to analysis

respondent’s perception towards quality of online banking services in India. The
questionnaire is limited to banking companies i.e. State Bank of India (SBI) and
Industrial Credit & Investment Corporation of India Bank (ICICI). A total random sample
of 50 respondents (25 customers & 25 employees of the banks) is taken into
consideration for data analysis and a graphical representation is done through pie charts
and bar graph.
4.(i). Responses Collected From Customer
4.1. Age Group Wise Distribution Of Respondents
The age of the respondents who fill the questionnaire is summarized as below:
Table 4.1
Age Frequency Percentage %

20-25 9 36
25-30 11 44
30-35 2 8
Above 35 3 12
Source: Compiled by surveyor

Graph 4.1
50
Percentage 40
30
20 44
36 12
10 8
0
20-25 25-30 30-35 above 35
Age
As per Graph 4.1 & Table 4.1, about 44% of the respondents belong to the age group of
25-30, hence prefer online services. 36% belongs to 20-25 age group, 12% from above 35
& only 8% from 30-35age group.
4.2. Education Qualification distribution of Respondents
The education qualification of the respondents is summarized below:
Table 4.2
Qualification Frequency Percentage %

SSC 2 8
Undergraduate 2 8
Post graduate 21 84
No education 0 0

Graph 4.2
0%
8%
12%
SSC
undergraduate
post graduate
no education
80%
As per Graph 4.2 & Table 4.2 the respondents who have filled the questionnaire
majority from post graduate i.e. 80%, after which 12% is under graduate & 8% is
pursuing 12th (SCC).
4.3. Account On Which Bank
The question was asked to the respondents about “which bank account they have?”& the
reply for respondents is summarized as below:
Table 4.3
Frequency Percentage (%)

SBI 10 42
ICICI 9 38
OTHER 6 20

Graph 4.3
20%
42% SBI
ICICI
38%
Graph 4.3 & Table 4.3 implies that 42% having their account with SBI bank, 38% with
ICICI bank & 20% with other banks.
4.4. Who Use Online Banking
The question was asked to the respondents about “who use online banking most and
frequently?”& the reply of respondents is summarized as below:
Table 4.4
User Frequency Percentage (%)

Businessman 13 52
Students 4 16
Professional/expert 5 20
Employees 2 10
Other 1 2

Graph 4.4
20% 10%
BUSINESSMANS
16% 2% STUDENTS
PROFESIONAL/EXPERT
EMPLOYEES
OTHER
52%
Graph 4.4 & Table 4.4 implies who use online banking or e-banking most. It says
mostly businessman use online banking .i.e. 52%. 20% is used by professional or expert,
16% by students, 10% by employees and the rest one not use online banking mostly .i.e.
2%.
4.5. How Many Knows Online Banking
The question was asked to the respondents about “do you know online banking?”& the
reply of respondents is summarized as below:
Table 4.5
Yes 23 92
No 2 8

Graph 4.5
8%
YES
NO
92%
Graph 4.5 & Table 4.5 reveals that how many people know about online banking in
today’s economy. 92% respondent knows about what is online banking and 8% don’t
know about online banking even after the demonetarization.
4.6. Bank Branch Visit
The question was asked to the respondents about “how frequently do you visit your bank
branch?” and the reply of respondents is summarized below:
Table 4.6
Regularly 2 8
Weekly 0 0
Monthly 11 44
Quarterly 9 36
yearly 3 12

Graph 4.6
0%
12% 8%
regularly
weekly
monthly
quarterly
36% 44%
yearly
Graph 4.6 & Table 4.6 reveals that how frequently customer visits their bank
branch. 44% respondent visit monthly and 36% respondent visit quarterly. Only 8%
respondents visit regularly.
4.7. Aware About Online Banking
The question was asked to respondents about “how do you know about online banking?”
and the reply is summarized below:
Table 4.7
frequency Percentage %
Newspaper 4 17
Advertisement 14 58
Friends 3 12
bank 3 9
other 1 4
Source: compiled by surveyor

Graph 4.7
4%
9% 17% NEWSPAPER
ADVERTISEMENT
12%
FRIENDS
BANK
OTHER
58%
Graph 4.7 & Table 4.7 implies that how people get aware about online banking.
58.3% people are getting aware from advertisements, 16.7% from newspaper, 12.5%
from friends, 9% from banks employees and remaining 4% from other source.
4.8. Reasons For Choosing Online Banking Services
The question was asked to respondents about “what were yours reasons for choosing
online banking services?” and the reply of respondents is summarized below:
Table 4.8
Frequency Percentage %
Save time 7 28
Convenience 7 28
24 hours access to account 11 44

Graph 4.8
SAVE TIME
28%
44% CONVENIENCES
24 HOURS ACCESS TO
ACCOUNTS
28%
Graph 4.8 & Table 4.8 implies the reasons why people choose online banking
services. 44% people use online services because it is 24 hours access to account. 28%
use because it save times and conveniences.
4.9. Often Use On Online Services
The question was asked to respondents about “how often you use online services?” and
the reply of respondents is summarized below:
Table 4.9
Daily 6 24
Weekly 5 20
Monthly 13 52
never 1 4

Graph 4.9
4%
24% daily
weekly
monthly
52% never
20%
Graph 4.9 & Table 4.9 says that how often people use online banking services. 52%
respondent use monthly and 24% respondents use daily. Only 4% never used online
services.
4.10. Mostly Used Online Features
The question was asked to respondents about “which online features do you use
regularly?” and the reply of respondents is summarized below:
Table 4.10
Frequency Percentage
Transfer funds 10 40
Pay bills 10 40
Balance inquire 2 8
Other 3 12

Graph 4.10
12%
TRANSFER FUNDS
8%
40% PAY BILLS
BALANCE INQUIRE
OTHER
40%
Graph 4.10 & Table 4.10 reveals that which online features are used mostly by the
people. 40% people use transfer of funds between accounts features and 40% used pay
bill features. Only 8% used balance inquire features.
4.11. Banks Services
The question was asked to respondents about “which banks gives you proper services?”
and the reply of respondents is summarized below:
Table 4.11
SBI 18 72
ICICI 5 20
Other 2 8

Graph 4.11
8%
20% SBI
ICICI
OTHER
72%
Graph 4.11 & table 4.11 implies that which bank provide better & proper services to
their customer in comparison of SBI &ICICI. 72% respondent says SBI provide proper
services and 20% says ICICI. Only 8% respondents say other than SBI &ICICI give
proper services.
4.12. Flexibility In Online Banking
The question was asked to respondents about “which bank gives you a more flexibility in
online banking?” and the reply of respondents is summarized below:
Table 4.12
SBI 12 48
ICICI 4 4
Both 7 28
Other 5 20

Graph: 4.12
20%
SBI
48%
ICICI
BOTH*
28%
OTHER
4%
Graph 4.12 & Table 4.12 implies that which bank give more flexibility in online
banking. 48% respondents say SBI give more flexibility in online services, 28% says
both SBI & ICICI bank give flexibility in online services. Only 4% says other banks.
4.13. Online Banking Transaction
The question was asked to respondents about “which kind of online banking transaction
you prefer?” and the reply of respondents is summarized below:
Table 4.13
NEFT 12 50
RTGS 10 42
ECS 3 8

Graph 4.13
8%
NEFT
50% RTGS
42% ECS
Graph 4.13 & Table 4.13 reveals that which kind of online banking transaction is mostly
preferred by customer. 50% use NEFT (national electronic funds), 41.7% use RTGS
(real-time gross settlement) & 8.3% use ECS (electronic clearing services).
4.14. Trust On Online Banking Service Security
The question was asked to respondents about “do you trust the security of online banking
services?” and the reply of respondents is summarized below:
Table 4.14
Completely 10 40
Strongly 4 16
Maybe 11 44
Not at all 0 0

Graph 4.14
0%
completely
44% 40% strongly
maybe
not at all
16%
Graph 4.14 & Table 4.14 reveals that 44% respondents are not sure about the online
banking security, 40% completely trust online banking security and only 16%
respondents are strongly and blindly trust online banking services security.
4.15. Mobile Banking & Mobile Wallet
The question was asked to respondents about “which you prefer between mobile banking
and mobile wallet?” and the reply of respondents is summarized below:
Table 4.15
Mobile banking 12 48
Mobile wallet 1 4
Both 9 36
None of these 3 12

Graph 4.15
12%
MOBILE BANKING
48% MOBILE WALLET

BOTH
NONE OF THESE
36%
4%
Graph 4.15 & Table 4.15 reveals that 48% people use or prefer mobile banking than
mobile wallet i.e. 4%. 36% people prefer both mobile banking & mobile wallet & only
12% people neither use mobile banking nor mobile wallet.
4.16. Disadvantages Of Online Banking
The question was asked to respondents about “what are the disadvantages of online
banking?” and the reply of respondents is summarized below:
Table 4.16
no disadvantages 3 12
Difficult in using 4 16
Limited services 9 36
Security concern 14 56

Graph 4.16
NO DISADVANTAGES
Disadvantage s
DIFFICULT IN USING
LIMITED SERVICES
SECURITY CONCERN
0% 10% 20% 30% 40% 50% 60%

precentage
Graph 4.16 & Table 4.16 implies the disadvantages of online banking. 56% respondents
say online services security, 36% limited services, 16% respondents face difficulty in
using, & 12% says no disadvantage in online banking.
4.17. Unnecessary Charges
The question was asked to respondents about “the unnecessary amount charge by the
bank for not maintaining minimum balance?” and the reply of respondents is summarized
below:
Table 4.17
Yes 11 44
No 8 32
maybe 6 24

Graph 4.17
24%
44% YES
NO
MAYBE
32%
Graph 4.17 & Table 4.17 implies that is their bank charge unnecessary amount or
deduction for not maintaining minimum balance in their account. 44% respondents say
yes, 32% say no & 24% respondents don’t know about it.

4.(ii). Responses Collected For Employees
4.18. Age Group Of The Respondents

The age of the employees (respondents) who fill the questionnaire is summarized as
below:
Table 4.18
Age Frequency Percentage %
25-30 8 33.1
30-35 15 62.4
35-40 2 8.4
Graph 4.18
35-40
age group
30-35
25-30
0 10 20 30 40 50 60 70
percentage
As per Graph 4.18 & Table 4.18 about 62.4% of the respondents belong to the age
group of 25-30, who fill the questionnaire. 33.1 % belongs to age group of 20-25, 8.4%
belong to 30-35 age group.

4.19. Post of The Respondents

The post of the employees who fill the questionnaire is summarized below:
Table 4.19
Post Frequency Percentage %
Clerk 8 32
PO 7 28
SO 3 12
Manager 7 28
Graph 4.19
28%
32% clerk
PO
SO
12% manager
28%
As per Graph 4.19 & Table 4.19 the respondents who have filled the questionnaire
majority from clerk post i.e. 32%, 28% from PO level, 28% are manager & 12% are from
SO level.

4.20. Visit Bank Website Per Day
The question was asked to respondents (employees of the bank) about “approximately
how many people visit your bank website per day?” and the responses of respondents are
summarized as below:
Table 4.20
Less than 10000 4 17
10000 to 50000 9 35
Above 50000 12 50
Graph 4.20
17%
LESS THAN 10000
50% 10000 TO 50000
ABOVE 50000
33%
Graph 4.20 & Table 4.20 implies that how many customers visit their bank website
per day. 50% employees says above 50000 customer visit their bank website for any
inquires, 33% says 10000 to 50000 customer visit their website & only 17% employees
say less than 10000 customer visit their website.

4.21. Update On Website
The question was asked to respondents (employees of the bank) about “how frequently
do you update your website?” and the responses of respondents are summarized as
below:
Table 4.21
Daily 11 44
Weekly 7 28
Monthly 3 12
More than ones in a month 4 16
Graph 4.21
DAILY
16%
WEEKLY
12% 44%
MOTHLY
28% MORE THAN ONES

IN A MONTH
Graph 4.21 & Table 4.21 reveals that how frequently the banks update their website.
44% employees say they daily update their website & 16% employees say they do more
than ones in a month.

4.22. Reason Of Introducing Online Banking
The question was asked to respondents (employees of the bank) about “what was the
reason behind introducing online banking?” and the responses of respondents are
Table 4.22
Competing foreign bank 0 0
Man power shortage 1 4
Qualitative customer services 6 16
Faster transaction and time saving 20 80
Graph 4.22
0% 4%
COMPETING FOREIGN
BANKS
16%
MAN POWER
SHORTAGE
QUALITATIVE
CUSTOMER SERVICES
80%
FASTER TRANSACTIONS
& TIME SAVING
Graph 4.22 & table 4.22 implies that what was the reason behind introducing online/ net
banking. 80% says online banking is gave faster transaction & save time. 0% means no
employees think that online banking is introduce for competing with foreign banks.

4.23. Aware About Bank Location On Net
The question was asked to respondents (employees of the bank) about “how do you make
your customer aware of your location on the net?” and the responses of respondents are
Table 4.23
Newspaper 1 4
Media 3 12
Bank publication 3 13
SMS/ mail notification 15 63
other 2 8
Graph 4.23
4%
8% NEWSPAPER
12%
MEDIA
13% BANK PUBLICATION
SMS/MAIL
NOTIFICATION
63% OTHER
Graph 4.23 & table 4.23 implies that how banks make the customer aware about their
location on the net. 63% banks make the customer aware by SMS/mail notification and
only 4% by newspaper.

4.24. Difficulties Faced By Employees To Work With E-Banking
The question was asked to respondents (employees of the bank) about “what are the
difficulties faced by you to worked?” and the responses of respondents are summarized
as below:
Table 4.24
Lack of knowledge 7 28
Resistance to change 3 12
Lack of proper training 5 20
Problem of security 3 12
No problem 7 28
Graph 4.24
LACK OF KNOWLEDGE
28% 28% RESISTANCE TO CHANGE
LACK OF PROPER TRAINING
PROBLEM OF SECURITY
12%
12%
NO PROBLEM
20%
Graph 4.24 & Table 4.24 implies that what are the difficulties faced by the employees to
work with e-banking or channel. 28% employees say there is no problems to work with e-
banking at the same 28% employees say it difficult to work because of lack of
knowledge. 12% resistance to change, 12% face problem of security & 20% face lack of
proper training.

4.25. Benefits To Work With Electronic Banking
The question was asked to respondents (employees of the bank) about “what is the
benefit with electronic banking?” and the responses of respondents are summarized as
below:
Table 4.25
Ease to operate 11 44
Improve service quality 15 60
Save time 24 96
Minimize the cost of transaction 9 36
Graph 4.25
ease to operate
benefits
improve services quality
save time
minimise the cost of traction
0% 20% 40% 60% 80% 100% 120%

percentage
Graph 4.25 & Table 4.25 implies the benefit that employees get to work with electronic
banking. 96% employees says it save time, 60% says it improve service quality, 44%
says it ease to operate & 36% says it minimize the cost.

4.26. How Long Has Been The Bank Provide Internet Services
The question was asked to respondents (employees of the bank) about “how long has
your bank been providing internet banking to customer?” and the responses of
respondents are summarized as below:
Table 4.26
Less than a year 2 18
1 to 5 years 7 28
More than 5 years 16 64
Graph 4.26
8%
less than a
year
28% 1 to 5 years
64% more than 5

years
Graph 4.26 & Table 4.26 implies how long has been the bank providing internet
banking and services to customer. 64% employees say more than 5 years. And 8% says
less than a year.

4.27. Types Of Complaints Register Per Month Related To E-Banking

The question was asked to respondents (employees of the bank) about “what are the
complaint register per month from e-banking customers?” and the responses of
respondents are summarized as below:
Table 4.27
Delay in banking 10 40
High cost of services charge 7 28
Lack of attention of bank 4 16
employee
Other 4 16
Graph 4.27
delay in banking
16%
function
40% high cost of service
charge
16%
lack of attention of
banks employee
other
28%
Graph 4.27 & Table 4.27 reveals that 40% complaints are register for delaying in
banking function, 28% for charging high service cost, 16% for lack of attention of banks
employees on complaint placed by customer, & 16% for other complaints related to e-
banking.

4.28. Is E-Banking Beneficial For Banks?
The question was asked to respondents (employees of the bank) about “why is e-banking
beneficial for the bank?” and the responses of respondents are summarized as below:
Table 4.28
Gaining customer royalty 4 16
Market share & strength of bank 6 24
Vision of the future 13 52
Other 2 8
Graph 4.28
8%
16% Gaining customer loyalty
market share & strength

of bank
vision of the future
24%
other
52%
Graph 4.28 & Table 4.28 implies that why is e-banking beneficial for the banks. The
respondents says 52% because for vision of the future and 8% for the other benefits than
the market share, strength of bank and gaining customer royalty.

4.29. Number Of Complaints Received Related To Online Services
The question was asked to respondents (employees of the bank) about “how many
complaints received regarding the online banking services per month?” and the responses
of respondents are summarized as below:
Table 4.29
50 7 28
100 2 8
More than 100 13 52
No complaints 3 12
Graph 4.29
12%
28% 50
100
more than 100
8%
no complaints
52%
Graph 4.29 & table 4.29 implies that more than 100 complaints received regarding the
online banking services i.e. 52%. 12% employees says no complaint received.
**********************************************************


CHAPTER V

CHAPTER V
SUMMARY, MAJOR OBSERVATION & SUGGESTION
5.1. Summary
The project report focuses on the two major banks in the banking sector that is State Bank
of India (SBI) and Industrial Credit & Investment Corporation of India Bank (ICICI). The
research project has covered the level and quality of e-banking services provided by the
ICICI and SBI Bank to its customers. It includes the research on the customers’
expectations and employees thinking & 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 all over 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.
The research project has added the following major observation and suggestions below.
5.2. Major Observations:

It is observed from the research that:
1. Most of the peoples are aware of online banking services. Approx. 51% of Indians
use online banking channels.
2. Most of the customers ask for the advice from the others & bankers before
opening an online account.
3. 26% of Indian customers prefer to access services via their bank’s website, and
the same number would prefer to use a mobile app rather than talk to a human
agent.
4. 92% peoples think that online banking services are the best way for transferring
the money from one to another etc.
5. 82% people are ready to take the advantage of online banking services provided
by SBI bank.
6. According to my knowledge and perception maximum old age customers found

SBI more reliable bank as a public sector bank where as mostly youngsters have
interest in ICICI bank.
7. More banks are connecting to the software companies to run the e-banking
service. In these services SBI Bank is in the top in proving the service.
8. The services used by most of the customers are checking the current balance of
their account, order a cheque book, and pay bills, online trading and inter account
transfers.
9. A satisfaction level of customer is high. 93% of respondents are satisfied by the

level of banking service they receive, 22% say they have never faced any
customer satisfaction related issues

10. 37% of Indian respondents will change banks if they had a bad experience, 44%
would let friends and family know about their issues.
5.3. Suggestion
 Banking should take necessary steps to create awareness among rural people
about the advantages and use of online banking services available in the banks.
 The online banking should make the online enquiry & online payment much
easier to the customers to Grap the illiterate population.
 Most of the customers have not availed of the e-banking services because they
don’t trust the internet channel. So bank may set up a team of personnel to train
the customers to get familiar with internet channel.
 Customers judge technology on function and emotion, in other words, how it

makes their lives easier, and how it feels when they use it. If the banks digital
presence is dated, it make the customer feel satisfied and fail the effect of online
function like delay, insufficient information, etc.
 Always update the website & make the customers update about your new product
and services through banks website.
 Charge lesser amount for online transaction and also inform the customers about
their transaction and the charges cut on that online transaction through SMS or
email.

Conclusion
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 than
the private sector bank.
While doing the questionnaires with the customers I know about their views regarding
the online banking services and also the scope of online banking services. Indian
customers are very conservative and less risk taker.
The banks should or must be focus on-Launch Innovative product, Customized advance
products, Better customer services, fastest customer’s problem solving techniques, and
Customer retention.
Since both the banks are competing equally with each other. But SBI bank is little bit
above the line in young customer handling when compared to ICICI bank. SBI should be
considering more reliable because of public sector bank & because of its various schemes
Customers are getting the expert’s services.
Customers of small cities don’t take any advice before opening an online banking
account anywhere. But as the scope of online banking services is increasing day by day,
it is bringing the hope that scope will take expertise services of online banking services.
This response of the people shows that how much opportunity is laying in the market for
the online banking services.
In this project I tried to focus on the customer preference & their views regarding online
banking services.

Bibliography
Books:
 R. K. Uppal (2008), Banking Services and Information Technology: The Indian

Experience
 R.K. Uppal (2009), Modern Banking in India: Dimensions and Risks
Website:
 https://www.sbi.co.in/
 www.icicibank.com
 www.economictimes/sbinews
 www.scribd.com
 www.slideshare.com
 www.informaticsjournals.com
 www.google.com
 https://www.gobankingrates.com/banking/6-banking-technologies-
youll-see-next-5-years/

ANNEXURE

Annexure
Questionnaire
on
“Quality of Online Banking In India: A Comparative Study of SBI &
ICICI Bank”
For customer
1. Personal questions
i. Name:_____________________
ii. Age:______________________
iii. Education qualification?
o SSC
o Undergraduate
o Post graduate
o No education
2. Which bank account you have?

a. SBI
b. ICICI
c. Other
3. According to you who use online banking most?
a. Student
b. Businessmen
c. Profession/expert
d. Employees
e. Other(specify)_________________
4. Do you know online banking?
a. Yes
b. No

5. How do you know about online banking

a. Newspaper
b. Advertisement
c. Friends
d. Others
6. How frequently do you visit your bank branch?

a. Regularly
b. Weekly
c. Monthly
d. Quarterly
7. What were yours reasons for choosing our online banking services?
a. To save time
b. Convenience
c. 24 hours access to accounts
d. Others
8. How often do you use your online service?
a. Daily
b. Weekly
c. Monthly
d. Never
9. Which online features do you use mostly?
a. Pay bills
b. Make an account
c. Transfer funds between accounts
d. Wire transfers
10. Which banks gives you proper services?
a. SBI
b. ICICI
c. Others
d. None of these

11. Which bank gives you the more flexibility in online banking?
a. SBI
b. ICICI
c. Others
d. Both of these
12. Which kind of online banking transaction you prefer?

a. RTGS (Real-time gross settlement)
b. NEFT (national electronic funds)
c. ECS (electronic clearing services)
13. Do you trust the security of online banking services?
a. Completely
b. Strongly
c. May be
d. Not at all
14. From the following which you prefer more?
a. Mobile banking
b. Mobile wallet
c. Both a and b
d. None of these
15. What is the disadvantage of online banking?
a. Security concern
b. Limited services
c. Difficult in using
d. No disadvantage
16. Do your bank charge unnecessary amount for not maintain minimum balance?
a. Yes
b. No
c. Maybe

For employees
1. Personal questions
i. Name:__________________
ii. Age:____________________
iii. Post:
o Clerk
o PO
o SO
o Manager
2. Approximately how many people visit your bank website per day?
a. Less than 10000
b. 10000 to50000
c. Above 50000
d. Other _______________
3. How frequently do you update your website?
a. Daily
b. Weekly
c. Monthly
d. More than once in a month for every update
4. What was the reason behind introducing online/e-banking?
a. For competing foreign bank
b. Man power shortage
c. Qualitative customer services
d. Faster transaction and time saving
e. Any other (specify)

5. How do you make your customer aware of your location on the net?
a. Advertising on net
b. News media
c. Banks publication
d. Other ____________________
6. What are the difficulties faced by the employees to work with e-
banking/channels?
a. Lack of knowledge
b. Resistance to change
c. Lack of proper training
d. Problem of security
e. None/no problem
7. What is the benefit with electronic banking?
a. Minimize the cost of transaction
b. Save time
c. Improve service quality
d. All of the above
8. How long has your bank been providing internet banking to customer?
a. Less than a year
b. 1 to 5 year
c. More than 5 year
d. Other ________________
9. What are the complaint register per month form e-banking customer?
a. Delay in banking function
b. High cost of service change
c. Lack of attention of banks employee
d. Other ________________

10. What is e-banking beneficial for the bank?

a. For gaining customer royalty
b. Market share and strength of bank
c. Vision of the future
d. Other _______________
11. Number of complaints received related to online services per month?
d. 50
e. 100
f. More than 100
g. No complaints

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Quality Of Online Banking Services In India: A Comparative Study Of SBI & ICICI Bank

“QUALITY OF ONLINE BANKING SERVICES: IN

BACHELOR OF MANAGEMENT STUDIES

UNDER THE GUIDANCE

DR. ANIL R. CHOUGULE

ASSISTANT PROFESSOR (ECONOMICS)

SYDENHAM COLLEGE OF COMMERCE AND

Sydenham College of Commerce &Economics 1

“QUALITY OF ONLINE BANKING SERVICES: IN COMPARITIVE

BACHELOR OF MANAGEMENT STUDIES

UNDER THE GUIDANCE

ASSISTANT PROFESSOR (ECONOMICS)

SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS

Sydenham College of Commerce &Economics 2

I, Karishma Prajapati the student of Third Year, Semester V (2017) hereby

The information submitted is true and original to the best of my knowledge.

Roll No. 1325

SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS

‘B’ Road, Churchgate, Mumbai-400020

Sydenham College of Commerce &Economics 3

SYDENHAM COLLEGE OF COMMERCE & ECONOMICS

This is to certify that Mrs. KARISHMA PRAJAPATI, ROLL NO. 1325

Dr. Jharna Kalra Dr.P.A. Pachgade Dr.Manoj B.Bhide

Project Guide/ Internal Examiner:-

Sydenham College of Commerce &Economics 4

I would like to acknowledge the following as being idealistic channels and

I take this opportunity to thank University of Mumbai for giving me chance

I would like to thank my Principal, Dr. M. B. BHIDE for providing the

I would also like to express my sincere gratitude towards my project guide

I would like to thank my Sydenham College Library, for providing various

Sydenham College of Commerce &Economics 5

SR. NO TOPIC PAGE NO.

1. CHAPTER 1: INTRODUCTION & RESEARCH 1-16

1.1.Statement of the research 2

1.2. significance of online banking 2

1.5.Electronic banking & its evolution 5

1.6.IT revolution in banking sector 7

2. CHAPTER II: PROFILE OF SBI 17-31

Sydenham College of Commerce &Economics 6

2.1. Subsidiaries of SBI 17

2.2. History of SBI 18

2.4. Corporative social responsibility 20

2.5. Moving away from cash to digital 21

2.6. Products & services provided by SBI 24

2.7. What’s new in SBI 26

2.8. Awards & achievements of SBI 27

2.10. Performances of SBI 29

3. CHAPTER III: PROFILE OF ICICI 32-44

3.2. Products & services provide by ICICI bank 34

3.3. What’s new in ICICI 36

3.4. CRS in ICICI 37

3.5. Awards & achievements of ICICI 39

3.6. Promoter of ICICI 40

Sydenham College of Commerce &Economics 7

3.7. Performances of ICICI 42

4 CHAPTER IV: DATA INTERPRETATION & 45-74

4. (i) Responses collected from customers 45-62

4.(ii) Responses collected from employees 63-74

5 SUMMARY, MAJOR OBSERVATIONS, 81-85

5.2. Major Observation 82

DIAGRAM NO. TITLE PAGE NO.

3.1 Corporate social responsibility of ICICI 38