A STUDY ON CUSTOMER AWARENESS TOWARDS E-

BANKING SERVICES OF STA

STATE
TE BANK
B ANK OF INDIA
IND IA WITH
REFERENCE TO ERNAKULAM CITY

PROJECT REPORT

Submitted To

MAHATMA GANDHI UNIVERSI

UNIV ERSITY
TY,, KOTTAY
KOTTAYAM

In partial fulfilment of the requirements for the award of the

Degree of 

BACHELOR OF COMMERCE

Submitted By

RINI BABU

( Reg.No  !"##$!##%&' )

Under the supervision of

VARUN.V.VARGHESE

ASSISTANT PROFESSOR

DEPARTMENT OF COMMERCE

ST . PAUL*S COLLEGE KALAMASSERY

$#!" - $#!'
 DECLARATION

I , RINI BABU (Reg.+o !"##$!##%&'), hereby declare that this project work entitled A
STUDY
STUDY ON CUSTOMER
CUSTOMER AWARENESS
ARENESS TOW
TOWARDS
ARDS E-BANKIN
E-BANKING
G SERVICE
SERVICES
S OF
STATE BANK OF INDIA WITH REFERENCE TO ERNAKULAM CITY is the record
of the bona fide research carried out by me under the supervision of LT.
VARUN.V.VARGHESE Departmen
Departmentt of !ommerce
!ommerce St"#aul$
St"#aul$ss !olleg
!ollegee %alama
%alamasser
ssery
y in
 partial fulfilment of the requirement for the award of the Bachelor degree in commerce of 

&ahatma 'andhi University %ottayam "

(I)I B*BU
 ST. PAUL*S COLLEGE

( A/0/12e3
 A/0/12e3 2o M141251 G1+34/ U+/6e78/29 )

K1015188e79 : &;%#; , Ke7101 , I+3/1

CERTIFICATE

This is to certify that RINI BABU ( Reg.+o  !"##$!##%&'  + has done project work entitled
A STUDY ON CUSTOMER AWARENESS TOWARDS E-BANKING SERVICES OF
STATE BANK OF INDIA WITH REFERENCE TO ERNAKULAM CITY   under the
guidance of LT. VARUN.V.VARGHESE
ARUN.V.VARGHESE Depa
Depart
rtm
ment
ent of !om
!ommerc
merce
e St"
St"#aul
#aul$$s
!ollege%alamassery towards the partial fulfilment of the requirements for the award of 
Degree of Bachelor of !ommerce in &ahatma 'andhi University and this is the bona fide
record of the project work delivered by him during the year ,-./0,-.1"

!ounter signed by

#rof"
#rof " 'IBI)
'IB I) 2*!3B
2*!3 B 4T" 5*(U)"5
*(U) "5"5
"5*('6
*('67S7
7S7

6ead of the department *ssistant #rofessor 

Department of commerce Department of commerce

St"#aul$s
St"#aul$s !ollege St"#aul$s
St"#aul$s !ollege

%ala
%alama
mass
sser
ery
y %ala
%alama
mass
sser
ery
y
 ACKNOWLEGEMENT

I am very much delighted to present the dissertation on  A STUDY ON CUSTOMER 

AWARENESS TOWARDS E-BANKING SERVICES OF STATE BANK OF INDIA
WITH REFERENCE TO ERNAKULAM CITY I wish to acknowledge all those who
helped us to complete this study"

8irst and foremost I would like to thank 'od *lmighty for making me capable to do this
 project successfully"

I am deeply indebted to our guide 4T" 5arun"5"5aegheseDepartment of !ommerce

St"#aul$s !ollege%alamassery for his e9emplary guidance and valuable suggestions for 
completing the project"

I am thankful to #rof"'ibin 2acob6ead of the Department of !ommerce and all other 

teaching staff of Department of !ommerce for their co0operation and help"

I am also greatly indebted to my family and friends for supporting me for the completion of 
this project work"

I wish to e9tend my sincere gratitude to all those who have helped me directly or indirectly
in completing this dissertation work"
 CONTENTS

CHAPTER TITLE PAGE NO

. INTRODUCTION
 Statement of the study
 3bjectives of the study
 Scope of the study
 (esearch methodology
 Data collection method
 Tools for data analysis
 4imitations of the study
Scheme of chapteri:ation

, REVIEW OF LITERATURE

; THEORITICAL FRAMEWORK 
 7volution of Banking
 6istory of banking in India
 State Bank of India < !ompany profile
 70banking
 3verview of e0banking in India
 70banking services of SBI

= DATA ANALYSIS AND INTERPRETATION

> FINDINGS,SUGGESTIONS AND

CONCLUSION

BIBLIOGRAPHY

APPENDI<
LIST OF TABLES

TABLE NO. TITLE PAGE NO.

=". Distribution of respondents according to their gender 

=", Distribution of respondents according to their age

="; Distribution of respondents according to their occupation

="= Distribution of respondents according to their annual
income level
="> Distribution of respondents according to their year of
account held with State Bank of India
="/ Distribution of respondents according to their awareness
about e0banking of SBI
="1 Distribution of respondents according to their view of safe
and secure while using e0banking services
="? Distribution of respondents according to their convenient
mode of e0banking
="@ Distribution of respondents according to their satisfaction
level in the usage of *T& services
=".- Distribution of respondents according to their satisfaction
level of internet banking services
=".. Distribution of respondents according to their satisfaction
level of tele0banking services
="., Distribution of respondents according to their satisfaction
level of mobile banking services
=".; Distribution of respondents according to their satisfaction
level of plastic money services
=".= Distribution of respondents according to their need of
improvement towards e0banking services of SBI
=".> Distribution of respondents according to their overall
opinion of e0banking services of SBI
 The study was done in SBI bank and sample si:e of >- the credibility of the project is not
assured"

 #ersonal bias and prejudice of the respondents could have affected the result of the study"

 3nly certain statistical test could be applied to validate the result of the study"

 The study is based on quality and originality of secondary data taken through the official
website of SBI is considered as another limitation of study"

SCHEME OF CHAPTERISATION

CHAPTER ! - INTRODUCTION

CHAPTER $ - REVIEW OF LITERATURE

CHAPTER ; - THEORITICAL FRAMEWORK 

CHAPTER " - DATA ANALYSIS AND INTERPRETATION

CHAPTER % - FINDINGS , SUGGESTIONS AND CONCLUSIONS

  BIBLIOGRAPHY

APPENDI<
CHAPTER $

REVIEW OF
LITERATURE

There have been a lot of studies conducted in the field customer satisfaction towards
 banking services both at national and international level" Some of the previous related
research studies are given below"

A=o>-Ro=/?4, Mo>21@ ($##% +studied how to analyse comfort levels and attitude of users
towards online banking facilities" The findings resulted that there is a correlation between
attitude towards e0banking and feeling of security with regard to their demographic variables"
 I8e7+, Je++/e7 ($##&)  pointed out that a positive relationship between the level of financial
infrastructure and the level of competition and a negative relationship between the degree of 
state ownership in a banking sector and the level of competition"

Re9+o038, Jo4+ ($##') said that ,--/ e0banking technology services industry customer 
loyalty survey data results in order to improve marketing resource allocation for corporate
ebanking products and services"

H>1+g, H1/=o ($##% + reveals that the successful introduction electronic money and ebanking
services depends mainly on people acceptance"The major finding is that although ebanking
customers more or less have some common characteristics they differ across different types
of e0banking services"

T12, Je1+e22e ($##')  pointed out that Technology *cceptance &odel T*&+ as applied to a
specific type of technologyG e0banking"They suggested that e0banking < prior training
 perceived ease of use of e0banking technology"

Jeo+, K/9o+g ($#!")  have said that consumer prefer larger banks in U"S"Because they has to
reduce their transportation cost by way of larger banks have multiple *T& centre$s across the
country"

Lee, J/49>+ ($##;) e9amined that to identify whether customer intention affecting to use
online financial services"The effects of attitude toward behavioursubjective norm were
e9amined"Demographic variables were included as control variables"

D/+g, </+ ($##') reveals that consider for research consumer behaviour on internet in the last
years"The findings conclude that customer behaviour from self0service Service quality and
e9perience design perspectives"

W15101, To5 ($##) said that whether internet banking strategies were aligned with the
 bank$s core business based or not identified"

Fe124e751+, M1>7/?/oS1+?4e@ ($##$) studied that perceived risk inhibited consumer 

adoption intentions as well as perception of the usability usefulness of online payment"

B190e8, M/?4e00eE824e7 ($##")  have said that investigating factor contribute their decision to
 bank online frequency of banking activities"
CHAPTER ;

THEORITICAL
FRAMEWORK 

;.!. EVOLUTION OF BANKING

The word Bank seen to have been derived from the Italian word ABanco$" *t the time of the
establishment of the Bank of 5enice ..>1+ the 'ermans were influential in Italy" ABanck$
was the 'erman word for joint stock funds meaning a Aheap$ or A mound$" The Italians
converted the word into ABanco$ which denotes an accumulation of either stock or money"

The record of the activities of money changing lending and other banking functions
reaches back to around ,---B"! the Bablonian temples were in the banking business lending
at high rates of interest  gold and silver which had been left with them for safe keeping " .>--
years later 'reek temples were also depositories and temple fund at interest"

;.$. HISTORY OF BANKING IN INDIA

Banking in India originated long ago" There are evidences of giving loans to others even
during 5edic periods" Banking was synonymous with money lending" money lenders and
indigenous bankers played an important part in Indian society as purveyors of money and
credit from times immemorial "the money lenders provided loans to people in times of needed
mainly for consumption purposes while the indigenous bankers e9tended credit for financing
trade and industry" The indigenous bankers were for long the trusted custodians of the deposits
of the people and the royalty alike" Besides meeting the requirements of royal treasuries they
were the main source of finance for agriculture industry and trade "but the importance of 
money lenders and indigenous bankers was reduced to some e9tend with the establishment of 
agency houses and presidency banks patronised by the 7ast India !ompany towards the close
of the .1 th century" It was considered to be the birth of the modern banking"

;.; STATE BANK OF INDIA

The origin of the State Bank of India goes backs to the first decade of the nineteenth century
with the establishment of the Bank of !alcutta in .?-/ in !alcutta " Three years later the bank 
received its charter and was re0designed as the Bank of Bengal on , nd 2anuary .?-@" * unique
institution it was the first joint0stock bank of British India sponsored by the 'overnment of 
Bengal" The Bank of Bombay and Bank of &adras followed the Bank of Bengal" These three
The following are the services provided by mobile banking G

." 7nquiry of balance in accounts+

," &ini Statement < last five transactions
;" Transfer of 8unds to accounts with S BI Q other Banks
=" I&#S0 &obile to &obile Transfer
>" (equest for issue of !heque Book
/" 7nquiry regarding Demat account
1" #ay utility bills 7lectricity bill Telephone bill etc"+
?" &erchandise payments
@" &obile Top up
.-"Top up of DT6 connections
.."#ayment of SBI 4ife Insurance premium"
;..%. PLASTIC MONEY

#lastic money is the alternative of cash or the standard Amoney$" #lastic money is used to
refer to the credit cards debit cards that we use to make purchases in our everyday life" #lastic
money is much more convenient to carry around as you do not have to carry a huge sum of 
money with you" It is also much safer to carry it along or to travel with it as if it is stolen one
can consult the bank whose service you are using and get it blocked hence saving your money
from getting stolen or even lost"

#lastic money or polymer money made out of plastic is a new and easier way of paying for 
goods and services" #lastic money was introduced in the .@>-s and is now an essential form
of ready money which reduces the risk of handling a huge amount of cash" It includes debit
cards *T&s smart cards etc"

Different Types of #lastic &oneyG

C184 C1738 < * card that will allow you to withdraw money directly from your bank via an
*uthori:ed Teller &achine *T&+ but it will not allow the holder to purchase anything
directly with it"

C7e3/2 C1738 

*gain this card will permit the card holder to withdraw cash from an *T& and a credit
card will allow the user to purchase goods and services directly but unlike a !ash !ard the
money is basically a high interest loan to the card holder although the card holder can avoid
any interest charges by paying the balance off in full each month"

De=/2 C1738

This type of card will directly debit money from your bank account and can directly be used
to purchase goods and services" Ehile there is no official credit facility with debit cards per 
se as it is linked to the bank account the limit is the limit of what is in the account for 
instance if an overdraft facility is available then the limit will be the e9tent of the overdraft"

P7e-1/3 C184 C1738

*s the name suggests the user will add credit to the card themselves and will not e9ceed
that amount" These are usually re0useable in that they can be Atopped up$ however some cards
usually marketed as 'ift !ards are not re0useable and once the credit has been spent they are
disposed of"

S2o7e C1738

These are similar in concept to the !redit !ard model in that the idea is to purchase
something in store and be billed for it at the end of the month" These cards can be charged at a
very high interest rate and can are limited in the places they can be used sometimes as far as
only the store brand that issued it"
CHAPTER "

DATA ANALYSIS AND

INTERPRETATION
 CONVENIENT MODE OF E-BANKING
70

60

50

40

mo!t *re(ere e-ban'$ng

30 !erv$ce! o( SB) among
cu!tomer!
20

10

0
)%/% BA)# MB). BA)# %. BA)# P.AS%) M

So>7?e P7/5179 D121

INFERENCE

It is clear that the most preferred e banking services of SBI is mobile banking among
internet banking mobile banking  Tele banking and plastic money " this is because of the
convenience in handling and mobile can be easily portable from one place to another "

TABLE NO ".

DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR SATISFACTION

LEVEL IN USAGE OF ATM SERVICES OF STATE BANK OF INDIA

No. o 7e8o+3e+2 Pe7?e+21ge

79tremely satisfied .- ,-
Satisfied ,; =/
 )eutral .> ;-
Dissatisfied , =
79tremely dissatisfied - -
To210 %# !##
CHART NO ".
 SATISFACTION LEVEL OF ATM SERVICES

9tremle !a:!;e
Sa:!;e
eutral
$!!a:!;e
9tremle $ !! a:!;e

So>7?e P7/5179 D121

INFERENCE

8rom the above diagram it is clear that =/L of customers are purely satisfied with *T&
services provided by SBI" This is due to their card delivery number of transactions and
convenient way of its location" It is also shows that only =L of customers are dissatisfied with
their *T& facilities"

TABLE NO ".!#

DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR 

SATISFACTION LEVEL OF INTERNET BANKING SERVICES OF
STATE BANK OF INDIA

No.o 7e8o+3e+2 Pe7?e+21ge

79tremely satisfied ? ./
Satisfied @ .?
 )eutral ,@ >?
Dissatisfied = ?
79tremely dissatisfied - -
To210 %# !##
CHART NO ".!#
 SATISFACTION LEVEL OF INTERNET BANKING SERVICES
70

60

50

40 Percentage

30

20

10

0
9remel  ! a:!;e Sa:!;e eutal $ !! a:!;e9remel  $ !! a:!;e

So>7?e P7/5179 D121

INFERENCE

8rom the diagram it is clear that >?L of people are neutrally satisfied by the internet
 banking services of SBI and .?L are satisfied "./L are e9tremely satisfied "

TABLE NO ".!!

DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR 

SATISFACTION LEVEL OF TELE-BANKING SERVICES OF STATE
BANK OF INDIA

No. o 7e8o+3e+28 Pe7?e+21ge

79tremely satisfied . ,
Satisfied ? ./
 )eutral @ .?
Dissatisfied ,@ >?
79tremely dissatisfied ; /
To210 %# !##
CHART NO ".!!
CHAPTER %

FINDINGS ,CONCLUSION

AND SUGGESTIONS
 This chapter deals with the findings summarised  the conclusions derived and suggestions
made from the collected data "

3ur study deals with * STUD 3) !UST3&7(

!UST3&7( *E*(7)7SS 3)
3) 70B*)%I)' 38
SBIC" It was conducted among the customers of 7rnakulam district" 8or the purpose of study
 primary data was collected
colle cted from >- customers using questionnaire" 8ollowing are the findings
of the studyG

FINDINGS

 70banking services are being widely used by males rather than females" This study
reveals that percent of the respondents are males"
 The study shows the fact that main users of e0banking services are of the age group
 below;-" They form /=L of the respondents"
res pondents" The number of people above the age of 
>- years who use e0banking services are very less compared to other age groups"
 Stud
Studen
ents
ts are usin
using
g e0ban
e0banki
king
ng servi
service
cess becau
because
se they
they are more
more awar
awaree abou
aboutt the
the
same"1/L of the respondents are qualified as students"
 #riv
#rivate
ate empl
employ
oyees
ees prefe
preferr e0ban
e0banki
king
ng servi
service
cess more
more comp
compare
ared
d to 'ove
'overn
rnme
ment
nt
employees and businessmen" Through less time they can make their transactions"
 &ost of the respondents are aware about the various e0banking services provided by
State Bank of India" ie about ?-L"
 It also shows that ,-L of the respondents are not aware about the same" This is
 because of lack of technical knowledge"
 &ajority of them prefer mobile banking as the commonly used e0banking service" It is
about /-L" This is because of its convenience in handling mobiles can be easily
 portable from one place to another"
another"
 *ll the SBI e0banking services apps can downloaded into the mobile and thus they can
avoid time consuming"
 There is only =L of the respondents
respondents preferring tele0bankin
tele0banking
g and .,L are the users of 
internet banking"
 There is only =/L of the customers are purely satisfied with the *T& services
 provided by the SBI"
 #romptness of their card delivery number of transactions and convenient way of its
location are the reasons for opting *T&
*T& services"
 =L of the respondents
res pondents are dissatisfied with the *T&
*T& services"
 >?L of the respond
respondent
entss are neutral
neutrally
ly satisfi
satisfied
ed by the intern
internet
et bankin
banking
g service
servicess
 provided by SBI and ./L are e9tremely satisfied because they are having higher 
level of education"
  )one of the persons are e9tremely dissatisfied with the internet banking services"
 There is more dissatisfaction from the part of customers related with the tele0banking
services of SBI"ie >?L
 3nly ./ L of them are satisfied with the tele0banking services"
 There also e9ist the persons who are e9tremely dissatisfied with the same"
 It shows that >=L of the customers are in need of more promotion techniques in the
field of e0banking services of SBI"
 ./L
./L of the the respo
respond
nden
ents
ts says
says that
that SBI
SBI must
must wide
widen
n their
their facili
facility
ty for
for its
its bett
better 
er 
improvement and of ,-L of customers are in the opinion that SBI should be more
customer friendly"
friendly"
 /,L of the customers
customers are in the opinion
opinion of very goodC for the e0banking
e0banking services of 
the SBI"
 ,-L of the customers are in the
the opinion of e9cellent 
 3nly less number of customers are in the opinion of averageC"
 SUGGESTIONS

*wareness about e0banking services of SBI is moderateK the bank must take necessary
steps to make customers more aware about the provisions of e0banking services"

In order to increase the knowledge about e0banking services of SBI among customers
 bank can conduct more promotion techniques"

To ensure customer loyalty the bank can provide better facility according to the needs
and convenience of customers"

Though the e0banking is an effective tool but many of the customers are not using it
due to the awareness of the particular direct banking channel" )ow the responsibility
lies with the bank to make them aware about various e0banking channels through
 publicity and advertisements"

The bank should educate the customer about the usage of e0banking services and also
about their advantages" This would prompt the customers to shift from traditional brick 
and mortar channel"

It has been observed that even the customers who know about e0banking services are
not using this facility due to misconception and lack of information" These customers
should be targeted by the bank and must be convinced to use the same"

The bank may improve e9isting facilities to spread awareness about computer and net
 banking

The best way to motivate the customer to use the e0banking is the most efficient
customer care services"

CONCLUSION
 3ur economy is facing a wave of change with modern technologies penetrating into all the
sectors of manufacturing trading and services which are now giving a makeover for economy"
This make over is creating a great effect on the banking sector today" The nature of banking
transaction has moved from the long queue at the bank counter to the small screen that fits our 
hand

Banks began to use emerging technology to provide better qualities services to the
customers at less cost and greater speed" 7lectronic banking <the new face of banking made it
convenient for customers to make their transaction from any geographically diverse place
"The banks now removed their traditional ways and introduced modern concepts"

8rom my study on customer awareness on e0banking services provided by state bank of 
India conducted in 7rnakulam I concluded that majority of the customers are aware and
response of them is satisfactory with the e0banking services provided by state bank of India"
 because of the utility created on time  place and cost by e0banking services  it accepted by
everyone" The better attitude of the bank makes it more acceptable "

BIBLIOGRAPHY

 'ome: !lifford Banking Theory and #racticeC"

 *braham & & &odern BankingC"

Eebsite usedG
 www"bank"sbi"gov"in
 www"wikipedia"com
 www"google"com
 www"shodhganga"inflibnet"ac"in
 www"scribd"com

APPENDI<
?A STUDY ON CUSTOMER AWARENESS ON E-BANKING SERVICES O

STATE BANK OF INDIA WITH REFERENCE TO ERNAKULAM CITY

HU7STI3))*I(7

De17 S/7M1315 ,

T4/8 e71 /+ 4/?4 e 0/6e 2o319 /8 7e3o5/+12e3 =9 24e o73 e-=1+/+g. T4e
o73 418 e6o06e3 /+ 7e?e+2 2/5e8 418 >+3o>=2e309 =e?o5e 24e ?7> o =1+/+g 8e?2o7* /+
o>7 ?o>+279. T4e9 416e 8>7e09 7e6o0>2/o+/@e3 /+2o 24e ?o+?e2 o 1+92/5e, 1+94e7e. Fo7
24/8 =1+8 >8e 617/o>8 e0e?27o+/? ?41++e08 0/e ?o5>2e7, 5o=/0e8, 0182/? 5o+e9,
2e0e4o+e e2?..
THANK YOU VERY MUCH FOR YOUR VALUABLE TIME AND
INFORMATION