A

SYNOPSIS

ON

E-BANKING

AT

AXIS BANK LIMITED

A Project report submitted to Osmania University

In partial fulfillment for the Award of the Degree of

MASTER OF BUSIUNESS ADMINISTRATION

Submitted by

DEVULAPALLI SNEHA

HT NO: 2121-20-672-098

UNDER THE GUIDANCE OF

------------------------------------------

ARISTOTLE PG COLLEGE
(Affliated To Osmania University, Hyderabad)
Recognized By UGC under section 2(f) of UGC Act 1956
Beside Moinabad Police Station,
Chilkur, Moinabad ,Ranga Reddy District, Telangana.
2020-2022
CHAPTER I
INTRODUCTION
E-banking (or E-banking) means any user with a personal computer and a browser can get
connected to his bank -s website to perform any of the virtual banking functions. In E-
banking system the bank has a centralized database that is web-enabled. All the services that
the bank has permitted on the internet are displayed in menu. Any service can be selected and
further interaction is dictated by the nature of service. Once the branch offices of bank are
interconnected through terrestrial or satellite links, there would be no physical identity for
any branch. It would a borderless entity permitting anytime, anywhere and anyhow banking.
The delivery channels include direct dialup connections, private networks, public networks,
etc. with the popularity of computers, easy access to Internet and World Wide Web
(WWW),Internet is increasingly used by banks as a channel for receiving instructions and
delivering their products and services to their customers. This form of banking is generally
referred to as Internet Banking, although the range of products and services offered by
different banks vary widely both in their content and sophistication.

Meaning of E-Banking

E-bank is the electronic bank that provides the financial service for the individual client by
means of Internet.

Electronic banking

is an umbrella term for the process by which a customer may perform banking transactions
electronically without visiting a brick-and-mortar institution. The following terms all refer to
one form or another of electronic banking: personal computer (PC) banking, Internet banking,
virtual banking, online banking, home banking, remote electronic banking, and phone
banking. PC banking and Internet or E-banking is the most frequently used designations. It
should be noted, however, that the terms used to describe the various types of electronic
banking are often use interchangeably.

Electronic banking is an activity that is not new to banks or their customers. Banks having
has been providing their services to customers electronically for years through software
programs. These software programs allowed the user’s personal computer to dial up the bank
directly. In the past however, banks have been very reluctant to provide their customers with
banking via the Internet due to security concerns. Today, banks seem to be jumping on the
bandwagon of Internet banking. Why is there sudden increase of bank interests in the
Internet? The first major reason is because of the improved security and encryption methods
developed on the Internet. The second reasons that banks did not want to lose a potential
market share to banks that were quick to offer their services on the Internet.

Many of the banks like AXIS, AXIS, Inducing, IDBI, Citibank, Global Trust Bank (GTB),
Bank of Punjab and UTI were offering E-banking services. Based on the above statistics and
the analysts’ comments that India had a high growth potential for e-banking the players
focused on increasing and improving their E-banking services. As a part of this, the banks
began to collaborate with functions online.

E-banking is defined as the automated delivery of new and traditional banking products and
services directly to customers through electronic, interactive communication channels. E-
banking includes the systems that enable financial institution customers. Individuals or
businesses, to access accounts, transact business, or obtain information on financial products
and services through a public or private network including the Internet, Customers access e-
banking services using an intelligent electronic device.

The E-banking was firstly introduced in India by the AXISaround 1996. There after many
other banks like AXIS, Inducing bank, IDBI, Citibank Trust Banks, UTI, etc.followed the
service. As today private and foreign bank had started capturing the market through e-
banking hence “the competition is heating up and the lack of technology can make a bank
loose a customer” so now the public banks are breaking the shackles of traditional set-up and
gearing up to face the competition posed by the private sector counterparts.

The Global E-Banking Scenario

The banking industry is expected to be a leading player in e-business. While the banks in
developed countries are working primarily via Internet as non-branch banks, banks in the
developing countries use the Internet as an information delivery tool to improve relationship
with customers. In early 2001, approximately 60 percent of e-business in the UK was
concentrated in the financial services sector, and with the expected 10-fold increase of the
British e-business market by 2004, the share of the financial services will further increase.
Around one fifth of Finish and Swedish bank customers are banking online, while in the US,
according taunted, E-banking is growing at an annual rate of 60 percent and the numbers of
online accounts are expected to reach 35 million by 2014.Banks have established an Internet
presence with various objectives. Most of them are using the Internet as a new distribution
channel. Financial services, with the use of Internet, may be offered in an equivalent quantity
with lower costs to the more potential customers. There may be contacts from each corner of
the world at any time of day or night. This means that banks may enlarge their market
without opening new branches. The banks in the US are using the Web to reach opportunities
in three different categories:

 to market information, to deliver banking products and services, and

 To improve customer relationship.

In Asia

The major factor restricting growth of e-banking is security, in spite of several countries
being well connected via Internet. Access to high-quality e-banking products is an issue as
well. Majority of banks in Asia are just offering basic services compared with those of
developed countries. Still, e-banking seems to have a future in Asia. According to McKinsey
survey, e-banking will succeed if the basic features, especially bill payment, are handled well.
Bill payment was the most popular feature, cited by 40 percent of respondents of the survey.
However, providing this service would be difficult for banks in Asia because it requires a
high level of security and involves arranging transactions with a variety of players.

In India

Approximately one percent of high and middle-income group banking customers conducted
banking on the Internet in 2010 compared to 5 to 6 percent in Singapore and South Korea. In
2001, a Reserve Bank of India survey revealed that more than 20 major banks were either
offering e-banking services at various levels or planned to do so in the near future. Some of
the private banks included AXIS Bank, AXIS BankIndusInd Bank, IDBI Bank, Citibank,
Global Trust Bank, Bank of Punjab and UTI Bank. In the same year, out of an estimated 0.9
million Internet user base, approximately 17 percent were reported to be banking on the
Internet. The above statistics reveal that India does have a high growth potential for e-
banking. The banks have already started focusing on increasing and improving their e-
banking services. As a part of this, the banks have begun to collaborate with various utility
companies to enable the customers to perform various functions online. In 2012, over 70
percent of the banks in the US were offering e-banking services. However, large banks
appeared to have a clear advantage over small banks in the range of services they offered.
Some banks in the US were targeting their Internet strategies towards business customers.
Apart from affecting the way customers received banking services; e-banking was expected
to influence the banking industry structure. The economics of e-banking was expected to
favor large banks because of economies of scale and scope, and the ability to advertise
heavily. Moreover, e-banking offered entry and expansion opportunities that small banks
traditionally lacked.

In Europe

The Internet is accelerating the reconfiguration of the banking industry into three separate
businesses: production, distribution and advice. This reconfiguration is being further driven
by the Internet, due to the combined impact of:

 The emergence of new, more focused business models.

 New technological capabilities that reduces banking relationship and transaction
costs.
 High degree of uncertainty over the impact that new entrants will have on current
business models.

Though e-banking in the Europe is still in the evolutionary stage, it is very clear that it is
having a significant impact on traditional banking activities. Unlike in the US, though large
banks in the Europe have a competitive edge due to their ability to invest heavily in new
technologies, they are still not ready to embrace e-banking. Hence, medium-sized banks and
start-ups have an important role to play on the e-banking front if they can take concrete
measures quickly and effectively.
CHAPTER II

REVIEW OF LITERATURE
Rakesh H M & Ramya T J (2015) In their research paper titled “A Study on Factors
Influencing Consumer Adoption of Internet Banking in India” tried to examine the factors
that influence internet banking adoption. Using PLS, a model is successfully proved and it is
found that internet banking is influenced by its perceived reliability, Perceived ease of use
and Perceived usefulness. In the marketing process of internet banking services marketing
expert should emphasize these benefits its adoption provides and awareness can also be
improved to attract consumers’ attention to internet banking services.

Amruth Raj Nippatlapalli (2015) In his research paper “A Study on Customer Satisfaction of
Commercial Banks: Case Study on State Bank of India”. This paper present Customer
satisfaction, a term frequently used in marketing, is a measure of how products and services
supplied by a company meet or surpass customer expectation. Customer satisfaction is
defined as "the number of customers, or percentage of total customers, whose reported
experience with a firm, its products, or its services (ratings) exceeds specified satisfaction
goals."Banking in India originated in the last decades of the 18th century. The first banks
were The General Bank of India, NOW which started in 1786, and Bank of Hindustan, which
started in 1790; both are now defunct. The oldest bank in existence in India is the State Bank
of India, which originated in the Bank of Calcutta in June 1806, which almost immediately
became the Bank of Bengal. This was one of the three presidency banks, the other two being
the Bank of Bombay and the Bank of Madras, all three of which were established under
charters from the British East India Company. For many years the Presidency banks acted as
quasi-central banks, as did their successors. The three banks merged in 1921 to form the
Imperial Bank of India.

Mr. Vijay Prakash Gupta & Dr. P. K. Agarwal (2017) In their research paper “Comparative
Study of Customer Satisfaction in Public Sector and Private Sector Banks in India”. This
paper gives with the introduction of liberalization policy and RBI's easy norms several
private and foreign banks have entered in Indian banking sector which has given birth to cut
throat competition amongst banks for acquiring large customer base and market share. Banks
have to deal with many customers and render various types of services to its customers and if
the customers are not satisfied with the services provided by the banks then they will defect
which will impact economy as a whole since banking system plays an important role in the
economy of a country, also it is very costly and difficult to recover a dissatisfied customer.
Since the competition has grown manifold in the recent times it has become a herculean task
for organizations to build loyalty, the reason being that the customer of today is spoilt for
choice. It has become imperative for both public and private sector banks to perform to the
best of their abilities to retain their customers by catering to their explicit as well as implicit
needs. Many a times it happens that the banks fail to satisfy their customer which can cause
huge losses for banks and there the need of this study arises. The purpose of this research
article is to examine the customer satisfaction among group of customer towards the public
sector& private sector banking industries in India. Study is cross-sectional and descriptive in
nature. The researcher tries to makes an effort to clarify the Customer Service satisfaction in
Indian banking Sector. Descriptive research design is used for this study, where the data is
collected through the questionnaire. The information is gathered from the different customers
of the two banks, viz., PNB and AXIS Bank located in the Meerut Region, Uttar Pradesh.
Hundred bank respondents from each bank were contacted personally in order to seek fair
and frank responses on quality of service in banks. The service quality model developed by
Zeithamal, Parsuraman and Berry (2018) has been used in the present study. The analysis
clearly shows that there exists wide perceptual difference among Indian (public sector) banks
regarding overall service quality with their respective customers, when compared to Private
sector banks. Whereas the said perceptual difference in private banks is narrow. Ms. Nisha
Malik & Mr. Chand Prakash Saini (Jul 2016) In their research titled on “Private Sector Banks
Service Quality and Customer Satisfaction” A Empirical Study two Private Sector Banks”.
This research paper is an effort to examine the relationship between service quality and
customer satisfaction of two private sectors bank of India. Service quality has been described
as a form of attitude that results from the comparison of prospect with recital (Cronin and
Taylor, 1992, Parasuraman et al, 2017).

Gronroos 2015) argued that customers, while evaluating the quality of service, compare the
service they expect with perceptions of the services they actually receive. Since financial
products offered by various banks are similar by nature then why any particular bank of
product of any bank is preferred than others a matter of interest for academician as well as
banking industry. They may be difference between customers of public and private sector
banks, but why are two banks of one sector being preferred differently by customers. This
research study is an effort to find out the answer of these questions.

Vijay M. Kumbhar (2016) In his research paper “Factors Affecting the Customer satisfaction
In E-Banking: Some evidences Form Indian Banks”. This study evaluates major factors (i.e.
service quality, brand perception and perceived value) affecting on customers’ satisfaction in
e-banking service settings. This study also evaluates influence of service quality on brand
perception, perceived value and satisfaction in e-banking. Required data was collected
through customers’ survey. For conducting customers’ survey liker scale based questionnaire
was developed after review of literature and discussions with bank managers as well as
experts in customer service and marketing. Collected data was analyzed using principle
component (PCA) using SPSS 19.0. A result indicates that, Perceived Value, Brand
Perception, Cost Effectiveness ,Easy to Use, Convenience, Problem Handling,
Security/Assurance and Responsiveness are important factors in customers satisfaction in e-
banking it explains 48.30 per cent of variance. Contact Facilities, System Availability,
Fulfillment, Efficiency and Compensation are comparatively less important because these
dimensions explain 21.70 percent of variance in customers’ satisfaction. Security/Assurance,
Responsiveness, Easy to Use, Cost Effectiveness and Compensation are predictors of brand
perception in e-banking and Fulfillment, Efficiency, Security/Assurance, Responsiveness,
Convenience, Cost Effectiveness, Problem Handling and Compensation are predictors of
perceived value in e-banking.

Pooja Malhotra & Balwinder SINGH (2026) In their research paper “The Impact of Internet
Banking on Bank Performance and Risk: The Indian Experience”. The paper describes the
current state of Internet banking in India and discusses its implications for the Indian banking
industry. Particularly, it seeks to examine the impact of Internet banking on banks’
performance and risk. Using information drawn from the survey of 85 scheduled commercial
bank’s websites, during the period of June 2007, the results show that nearly 57 percent of the
Indian commercial banks are providing transactional Internet banking services. The
univariate analysis indicates that Internet banks are larger banks and have efficiency ratios
and profitability as compared to non-Internet banks. Internet banks rely more heavily on core
deposits for funding than non-Internet banks do. However, the multiple regression results
reveal that the profitability and offering of Internet banking does not have any significant
association, on the other hand, Internet banking has a significant and negative association
with risk profile of the banks.
CHAPTER-III

RESEARCH METHODOLOGY
NEED OF THE STUDY

The customer visits the financial institution's secure website, and enters the E-banking facility
using the customer number and credentials previously set up. The types of financial
transactions which a customer may transact through E-banking are determined by the
financial institution, but usually includes obtaining account balances, a list of the recent
transactions, electronic bill payments and funds transfers between a customer's or
another's accounts. Most banks also enable a customer to download copies of bank
statements, which can be printed at the customer's premises (some banks charge a fee for
mailing hard copies of bank statements). Some banks also enable customers to download
transactions directly into the customer's accounting software. The facility may also enable the
customer to order a cheque book, statements, report loss of credit cards, stop payment on a
cheque, advise change of address and other routine actions.

Today, many banks are internet-only institutions. These "virtual banks" have lower overhead
costs than their brick-and-mortar counterparts. In the United States, many online banks are
insured by the Federal Deposit Insurance Corporation (FDIC) and can offer the same level of
protection for the customers' funds as traditional banks.

OBJECTIVES OF THE STUDY

1. To study the Information Technology in view of research study.

2. To study the existing transaction system.
3. To study the all dependent parameters.
4. To study the feedback of the existing transaction system.
5. To study the feedback of implemented technology.

SCOPE OF THE STUDY

In the present scenario major economical and technical changes are undergoing in industrial
and financial revolution through the new information-processing technology. Especially in
finance sector it has a significant role for overall development. After identifying the subject
(research area) and referring the relevant literatures, it has been found that in most of the
literature, the information technologies have a wide application area. However, in finance
sector major changes have been made. Due to these drastic changes we have chosen to do the
study on urban cooperative bank system. After completing step by step procedure for
automation process, now it is required to take the review of the system. People used
information technological tools to manage and process the information. Atomization process
use in the financial sector for transaction system. This type of working methodology is used
in the financial Institute since long years. The Urban Co-operative bank sector is mostly
related to all classes of people like businessmen, industry, agriculture, labor, small
entrepreneurs, workers etc. It has been changing complete culture and working methodology.
Therefore, it has a wide scope to study the existing modern transaction system in the financial
sector mainly in urban cooperative bank system. For that purpose we are going to utilize
software engineering model based techniques for theoretical evaluation of atomization
process. In the literature survey it has been found that the software engineering technology
has monopoly for the development of software product and it is observed that such
technology is not used for study purpose in any other different field. So why not this
technology be tested on the external field application intentionally for this study? It requires
framework, structure, plan and controlling parameters for research field. Such type of theory
and planning is available in the software engineering subject.
RESEARCH METHODOLOGY

Primary Data:

In this research with a sample size of nearly 20 customer’s data will be available in form of
questionnaire collected in terms of different questions influencing the use of internet banking.
Internet banking is considered as dependent on awareness among customers which will be
studied with help of different independent variable. Only the customers of AXIS bank are
taken as samples for study.

Secondary data:

Collection of information from different kind of books the data of the company what they
maintained.

Methodology

Once the findings are finalized by a research, suggestions should be made for the betterment
of enterprise. The data collected from questionnaire will be tabulated and analyzed so that the
result can be presented as simple as possible. There are a number of ways like

 Pie-chart
 Graphs
 Benefits of Study
 Organizing Educational Campaign to Create Goodwill Of Company.
 Services It Effectively valuable to Create Place in the Minds of Customer.
 Availability should be increased by using various services Strategy.
 Company should make service equal to or better than Competitive Brands By All
Means.
 Find the customer satisfaction relating to E-banking service.
 To study the awareness of internet banking among the customers of AXIS banks.
LIMITATIONS

Banks are not giving me all information about e- banking services.

They do not permit to meet any employees in their banks.

Security and privacy aspects are major issue in case of E-Banking transaction. Various sites

are not properly locked at to ensure weather customer’s money is safe in cyber world or not.
The infrastructural cost of providing E-Banking facility is very high.
The banks not only have to automate front-end services but also back office services, which
involve high cost. 
Another great hindrance is lack of awareness because effective and wide media efforts in publishing
Internet banking need to be emphasized.
CHAPTER-IV
COMPANY PROFILE

AXIS BANK

Axis Bank India, the first bank to begin operations as new private banks in 1994 after the
Government of India allowed new private banks to be established. Axis Bank was jointly
promoted by the Administrator of the specified undertaking of the

 Unit Trust of India (UTI-I)

 Life Insurance Corporation of India (LIC)
 General Insurance Corporation Ltd.
Also with associates viz. National Insurance Company Ltd., the New India Assurance
Company, The Oriental Insurance Corporation and United Insurance Company Ltd.

EVOLUTION:

UTI was established in 1964 by an Act of Parliament; neither did the Government of India
own it nor contributes any capital. The RBI was asked to contribute one-half of its initial
capital of Rs 5 crore, and given the mandate of running the UTI in the interest of the unit-
holders. The State Bank of India and the Life Insurance Corporation contributed 15 per cent
of the capital each, and the rest was contributed by scheduled commercial banks which were
not nationalized then. This kind of structure for a unit trust is not found anywhere else in the
world. Again, unlike other unit trusts and mutual funds, the UTI was not created to earn
profits.

In the course of nearly four decades of its existence, it (the UTI) has succeeded phenomenally
in achieving its objective and has the largest share anywhere in the world of the domestic
mutual fund industry. '' The emergence of a "foreign expert" during the setting up of the UTI
makes an interesting story. The announcement by the then Finance Minister that the
Government of India was contemplating the establishment of a unit trust caught the eye of
Mr. George Woods, the then President of the World Bank. Mr. Woods took a great deal of
interest in the Indian financial system, as he was one of the principal architects of the AXIS,
in which his bank, First Boston Corporation Bank, had a sizeable shareholding. Mr. Woods
offered, through Mr. B.K. Nehru, who was India's Executive Director on the World Bank, the
services of an expert. The Centre jumped at the offer, and asked the RBI to hold up the
finalization of the unit trust

Proposals till the expert visited India. The only point Mr. Sullivan made was that the
provision to limit the ownership of units to individuals might result in unnecessarily
restricting the market for units. While making this point, he had in mind the practice in the
US, where small pension funds are an important class of customers for the unit trusts. The
Centre accepted the foreign expert's suggestion, and the necessary amendments were made in
the draft Bill. Thus, began corporate investment in the UTI, which received a boost from the
tax concession given by the government in the 1990-91 Budget. According to this
concession, the dividends received by a company from investments in other companies,
including the UTI, were completely exempt from corporate income tax, and provided the
dividends declared by the investing company were higher than the dividends received.

The result was a phenomenal increase in corporate investment which accounted for 57 per
cent of the total capital under US-64 scheme. Because of high liquidity the corporate sector
used the UTI to park its liquid funds. This added to the volatility of the UTI funds. The
corporate lobby which perhaps subtly opposed the establishment of the UTI in the public
sector made use of it for its own benefits later. The Government-RBI power game started
with the finalization of the UTI charter itself. The RBI draft of the UTI charter stipulated that
the Chairman will be nominated by it, and one more nominee would be on the Board of
Trustees. While finalizing the draft Bill, the Centre changed this stipulation. The Chairman
was to be nominated by the Government, albeit in Consultation with RBI. Although the
appointment was to be made in consultation with the Reserve Bank, the Government could
appoint a person of its choice as Chairman even if the Bank did not approve of him.Later on
in 2002 the UTI was renamed to Axis Bank.
 CHATER-V

CHAPTERIZATION
CHAPTERIZATION
CHAPTER-1
INTRODUCTION
CHAPTER-2
REVIEW OF LITERATURE
CHAPTER-3
RESEARCH METHODOLOGY
 NEED OF THE STUDY
 OBJECTIVES OF THE STUDY
 SCOPE OF THE STUDY
 DATA COLLECTION
 LIMITATIONS
 STATISTICAL TOOLS
CHAPTER-4
INDUSTRY/COMPANY PROFILE
CHAPTER-5
DATA ANALYSIS
CHAPTER-6
FINDINGS
CHAPTER-7
SUGGESTION & CONCLUSION
BIBLIOGRAPHY
ANNEXURES