A

SYNOPSIS ON

“E BANKING”

AT

“HDFC BANK LIMITED”

Submitted in partial fulfillment of the requirement for the award of the

MASTER OF BUSINESS ADMINISTRATION

BY

YERRAGORLA HARIKRISHNA

H.T NO: 1422-20-672-177

Department of management studies

CSI INSTITUTE FOR P.G. STUDIES

(Affiliated to Osmania University)

East marredpally, secunderabad, telengana

2020-2022

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1. INTRODUCTION
A feature of the banking industry across the globe has been that it is increasingly becoming
turbulent and competitive, characterized by an increasing trend towards internationalization,
mergers, takeovers and consolidation of the banking industry. Moreover a number of non-
banking companies are entering the banking industry by offering financial products and
services (e.g., Toyota’s credit card, GM’s auto financing, etc). This has given innumerable
options to customers in choosing banking services. As a response and aided by technological
developments, banks have attempted to build customer satisfaction through providing better
products and services and at the same time to reduce operating costs. Thus the banking
industry has been constantly innovating and with the advent of technological developments,
particularly in the area of telecommunications and information technology, one of the latest
innovation that took birth, and quite inevitably, has been the internet

With cyber cafes springing up in different cities access to the Net is going to be easy.
Internet banking (also referred as e banking) is the latest in this series of technological
wonders in the recent past involving use of Internet for delivery of banking products &
services. Even the Morgan Stanley Dean Witter Internet research emphasized that Web is
more important for retail financial services than for many other industries.
Internet banking is changing the banking industry and is having the major effects on banking
relationships. Banking is now no longer confined to the branches were one has to approach
the branch in person, to withdraw cash or deposit a cheque or request a statement of accounts.
In true Internet banking, any inquiry or transaction is processed online without any reference
to the branch (anywhere banking) at any time. Providing Internet banking is increasingly
becoming a "need to have" than a "nice to have" service. The net banking, thus, now is more
of a norm rather than an exception in many developed countries due to the fact that it is the
cheapest way of providing banking services.
BANKING INDUSTRY PROFILE
BANKING
The word "BANK" is derived from the 'Bancus' or 'Banque', which means a bench. In the
early days the European moneylenders and moneychangers used to sit on the benches and
exhibit coins of different countries in big heaps for the purpose of changing and lending
money,

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Definition:
A Banking company is defined as a company, which transacts the business of banking in
India.
As per Banking Regulation Act 1949 Section 5(b)
"Banking means, accepting for the purpose of lending or investment, of deposits of money
from the public, repayable on demand or otherwise, and withdrawal by cheque, draft, or
otherwise."
According to Sir John Paget
"No person or body, corporate or otherwise can be a banker who does not,
a. Take deposits accounts,
b. Take current accounts,
c. Issue and paycheques,
d. Collect cheques, crossed and uncrossed, for hiscustomers."
In simple words we can say that bank is a financial institution which deals in money and
credit by obtaining deposits from public and giving loans and credit to trade and industrial
respectively. "
FUNCTIONS OF BANKS
1. Primary Functions
 Acceptance of deposits
 Making Loans and Advances Loans
 Overdrafts Cash Credit
 Discounting of Bills of Exchange
2. Secondary Functions
 Agency Functions
 Collection of cheques and bills etc. Collection of interest and dividend
 Making payment on behalf of customers.
 Purchase and sale of securities.
 Facility of transfer of funds
 To act as trustee and executor
CLASSIFICATION ON BASIS OF OWNERSHIP
On the basis of ownership banks are of the following types:
1. PUBLIC SECTORBANK
Public sector banks are those banks that are owned by the Government. The Govt. runs these

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Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6 banks were also
nationalized. Therefore in 1980 the number of nationalized bank 20. But at present there are
9 banks are nationalized. All these banks are belonging to public sector category. Welfare is
their principle objective.
2. PRIVATE SECTORBANKS
These banks are owned and run by the private sector. Various banks in the country such as
HDFC Bank, HDFC Bank etc. An individual has control over there banks in preparation to
the share of the banks held by him.
3. CO-OPERATIVE BANKS
Co-operative banks are those financial institutions. They provide short term & medium term'
loans to there members. Co-operative banks are in every state in India -Its branches at district
level are known as the central co-operative bank. The central co-operative bank in turn has its
branches both in the urban & rural areas. .Every state cooperative bank is an apex bank,
which provides credit facilities to the central co-operative bank. It mobilized financial
resources from richer section of urb3n population by accepting deposit and creating the credit
like commercial bank and borrowing from the money mkt. It also gets funds from RBI.

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2. NEED FOR THE STUDY
The need of the study is HDFC benchmarking ourselves against international standards and
practices in terms of product offering technology, service levels, risk management and audit
& compliance.
The purpose is to build a sound customer franchise across distinct businesses so as
to be a preferred provider of banking services for target retail and wholesale customer
segments, and to achieve a healthy growth in profitability, we are committed to do this while
ensuring the highest level of ethical students, professional integrity. corporate governance
and regulatory compliance.

3. SCOPE OF THE STUDY

Every research is conducted under some constraints and this research is not an exception.
Limitations of this study are as follows: -
 There were several time constraints.
 The study is limited to areas of HYDERABAD only.
 The sample size of only 100 was taken from the large population for the
purpose of study, so there can be difference between results of sample from total population.
 The study is related to service class people only.
 People were reluctant to go in to details because of their busy schedules.
 Merely asking questions and recording answers may not always elicit the
actual information sought.
 Due to continuous change in environment, what is relevant today may be
irrelevant tomorrow.

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4. OBJECTIVES OF THE STUDY: -
The main objectives of the study are:
*To study the e banking system at HDFC Bank.
*To study the effectiveness of e banking at HDFC Bank.
*To study the consumer perception towards e-banking.

5. HYPOTHESIS
The following hypotheses will be tested in our research:
H1(null) Service quality using internet banking does not impact customer satisfaction
H1(alt) Service quality using internet banking does impact customer satisfaction.
H2(null)- The six dimensions of online service quality (speed of delivery, reliability, ease of
use, enjoyment, control and privacy) does not lead to customer satisfaction with internet
banking. H2(alt)- The six dimensions of online service quality (speed of delivery, reliability,
ease of use, enjoyment, control and privacy) lead to customer satisfaction with internet
banking.
H3(null) -Overall customer satisfaction using internet banking quality services does not
differ base on demographic characteristics.
H3(alt) -Overall customers satisfaction using internet banking quality services differ based
on demographic characteristics.
6. LIMITATIONS
 The usage of E-banking is all set to increase among the service class.
 The service class at the moment is not using the services thoroughly due to various
hurdling factors like insecurity and fear of hidden costs etc.
 So banks should come forward with measures to reduce the apprehensions of their
customers through awareness campaigns and more meaningful advertisements to make E-
banking popular among all the age and income groups.
 Further, with increasing consumer demands, banks have to constantly think of
innovative customized services to remain competitive.
 E-Banking is an innovative tool that is fast becoming a necessity.
 It is a successful strategic weapon for banks to remain profitable in a volatile and
competitive marketplace of today.

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 BIBLIOGRAPHY

BOOKS
Malhotra, T. D., “Electronic Banking and Information Technology in Banks” Sultan
Chand and Sons, NewDelhi,2008.
S.S Kaptan& N.S. Choubey. “Indian Banking in ElectronicEra”
· Internet Banking in India-Part I- Dr A. K.Mishra

WEBSITES
· www.banknetindia.com
· www.bharatbook.com
· www.HDFCbank.com