B.

k Birla College of Arts Commerce And science (autonomous Kalyan)

“A STUDY OF DIGITALIZATION IMPACT ON BANK OF MAHARASTRA”

A Project Submitted to
University of Mumbai for partial completion of the degree of
Masters in Commerce (Advance accounting)
Under the Faculty of Commerce

By

Ganesh Ananda Kamble

ROLL NO 27
M.com part ll sem lll
Under the Guidance of

Mrs. L.B Soni

B.k Birla college Kalyan (west)

2022-23

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 Certificate
This is to certify that Mrs Ganesh Ananda kamble has worked and duly completed
her/his Project Work for the degree of Bachelor in Commerce (Advance Accounting)
under the Faculty of Commerce in the subject of her project is entitled “A STUDY OF
DIGITALIZATION IMPACT ON BANK OF MAHARASTRA ” under my
supervision.

I further certify that the entire work has been done by the learner under my guidance
and that no part of it has been submitted previously for any Degree or Diploma of any
University.

It is her own work and facts reported by her personal findings and investigations.

Mrs.L.B.soni

(Name and signature of the guiding teacher)

Date of submission

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 DECLARATION

I the undersigned Mr Ganesh Ananda kamble the student of

McompartllSEMESTER lll (2022 2023) Hereby, declare that I have completed the
project on forms my own contribution to the research work carried out under the
guidance of MRs L.B Soni Is a result of my own research work and has not been
previously submitted to any other University for any other Degree/ Diploma to this or
any other University.

Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

Mr Ganesh Ananda kamble

(Name and signature of the learner)

Certified By,
MRs L.B.Soni
(Name and signature of the guiding teacher)

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 ACKNOWLEDGMENT

To list who all have helped me is difficult because they are so numerous and the depth
is so enormous.

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 the University of Mumbai for giving me chance to do
this project

I would like to thank my Principal, MR. Pawar Sir, for providing the necessary
facilities required for completion of this project.

I take this opportunity to thank our Coordinator MRs.L.B.Soni

for her moral support and guidance.

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

MRs.L.B.Soni Sir whose guidance and care made the project successful.
I am grateful to the respondents who took out time for filling the questionnaire.
Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of the project especially my Parents and Peers who supported
me throughout my project.

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 List of Graphs

Graph No. Title Page

No
4.3.1 Age
4.3.2 Gender
4.3.3 Marital Status
4.3.4 Qualification
4.3.5 Occupation
4.3.6 Monthly Income
4.3.7 Are you aware of service digitalization of
banking
4.3.8 Are you using E-Banking
4.3.9 While opening an account, are you aware of E-
Banking services provided by the bank
4.3.10 Manual Banking is more convenient than Digital
Banking
4.3.11 How you perceive Digital Banking System
4.3.12 Why you not using Online Banking Services
4.3.13 Which bank you preferred
4.3.14 Why this bank you selected
4.3.15 Which is the main reason for you to use
Digitalization
4.3.16 Frequency of Transaction
4.3.17 Are you satisfied with the using of Digitalization
4.3.18 Application form is available on the website then
how a customer submit that
4.3.19 Did the bank do a Cost analysis Specifically on
Digital Banking

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 CONTENTS

Chapter Title Page

No
Certificate
Declaration
Acknowledgement
List of graphs
Contents
01. Introduction
02. Research Methodology
03. Review of Literature
04. Data Collection & Analysis
05. Finding, Suggestion, Conclusion
Bibliography
Appendix

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 Chapter-1

INTRODUCTION

Sr No. Title Page

No
1.1 Definitions
1.2 Introduction of Bank of Maharastra
1.3 Introduction of Digitalization
1.4 Need and Progress of Digitalisation in bank of
Maharastra
1.5 History
1.6 Advantages of digitization in banking
1.7 Disadvantages of digitization in banking
1.8 Role of digitization in banking
1.9 References

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Chapter 1: INTRODUCTION

1.1 Definitions:

The words and phrases used in this document shall have the meanings as given below unless
repugnant to the context.

Digitization is the process of converting data into digital format. Digitalization

means the adoption of technology. But these two words are being used interchangeably.

"Account(s)" means the Customer's Savings/Current Account , credit card account, home
loan account and/ or vehicle loan account and/ or consumer loan account , Demat account or
any other type of account (each an "Account" and collectively "Accounts", so maintained
with Bank of Maharashtra which are eligible Account(s) for operations through the use of
MahaConnect Services. “

"Bank” means Bank of Maharashtra, a Banking Company constituted under the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its registered office
at 1501, Lokmangal, Shivaji Nagar, Pune – 411005, India including any of its branch office.

Bank of Maharashtra, it deals with the introduction and history of BOM, Vision and mission
of bank, Millstone achieved by the bank, Sectoral Deployment of Credit, Foreign Exchange
Business and Export Finance, Income, Expenditure and Profitability, Branch Network and
Expansion, Human Resource Development, Information Technology, Vigilance of BOM are
highlighted in this chapter.

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1.2 Introduction of bank of maharastra:
Bank of Maharashtra was registered on September 16, 1935 with an authorized capital of Rs
10.00 lakh. The Bank started its operations on February 8, 1936. Ever since its inception,
Bank of Maharashtra is known as common man‟s bank. The Bank‟s initial help to small units
has given birth to many of today‟s industrial houses. In July 1969, Bank of Maharashtra was
nationalized along with 13 other banks. After nationalization, the Bank expanded rapidly and
today its branch network comprises of 1350 branches and 30 extension counters spread over
22 states and 2 union territories. Bank of Maharashtra has the largest network of branches by
any Public sector bank in the state of Maharashtra. Bank of Maharashtra attained autonomous
status in 1998. It has helped the Bank in providing more and more services with simplified
procedures without intervention of Government. Bank of Maharashtra excels in Social
Banking, and it has 46% of its branches in rural areas. The Bank has achieved
computerization of all rural and semi urban branches by providing a cost effective small
branch automation solution called “BIBAS” for rendering effective customer service to rural
India. 121 Mahabank, started 77 years ago by great visionaries to serve the small in Trade &
Industry and the common man who were not getting banking facilities at that time, has been
keeping the common man at the centre in its policies, practices and strategies from the
beginning. Bank has crossed many milestones in its journey of serving the nation,
commenced in 1936. Bank is one of the few public sector banks who adopted latest
technology more than two decades ago, to bring the benefits of IT to its customers. Bank has
its presence in 26 states and 2 Union Territories across India. All the 1577 branches are under
CBS, providing "any where any time banking". The Bank‟s network of 501 ATMs have
highest average daily hits proving that they are placed at most convenient locations of the
customers. Bank secured ISO 27001:2005 certificate from Det Norske Veritas (DNV), an
international certification agency, for its Information Technology division which establishes
that it has complied with the international standards for security capabilities relating to
processes, policies, practices and infrastructure. Bank has wide range of IT Enabled services
such as "MahaConnect" (Internet Banking Service), Mobile Banking, Phone Banking and
SMS Banking facility with online facility for funds transfer to give comfort of banking to its
customers. Nationalized in 1969 itself, Maha Bank continued to spread its network and
services in rural and semi urban areas also, consequent of which, it has 54% of branches in
rural and semi urban area even today. New initiatives for rural development are very common

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in Bank of Maharashtra. Bank of Maharashtra made its tryst with Financial Inclusion way
back in 1989 when the Gramin Mahila Va Balak Vikas Mandal, an NGO was established
primarily to promote empowerment of the economically weak and women. National Bank for
Agriculture and Rural Development (NABARD) awarded FIRST prize to Bank of
Maharashtra for best 122 performance in the category of commercial banks under SHG Bank
Linkage Programme during 2010-11 in Maharashtra state. Today there are more than 85,000
Self Help Groups promoted by the Bank. The Rural Development Centers and 7 Mahabank
Self Employment Training Institutes are working for Mahabank Agricultural Research and
Rural Development Foundation, a Trust established by the Bank for undertaking rural
development activities. 100 Mahabank Gram Seva Kendras (MGSKs) in remote villages are
latest unique initiative of the Bank under Financial Inclusion Plan. The Bank‟s permanent
staff member of the nearest parent branch, equipped with a laptop will be available in these
MGSKs to render all types of banking services on specified days every week, so that the
villagers can avail the same at their doorsteps. Bank has completed coverage of all allotted
1215 villages under Financial Inclusion Plan well before the expected time frame. More than
1.30 crore customers are the basic strength to us who are patronizing us with their loyalty and
patronage. I thank them all and remain grateful to them for ever. With about 14000 dedicated
work force along with state of the art technology in place coupled with wide range of
products and services to fulfill banking needs of all segments of society, Maha Bank will
continue to bring delight in banking with it always.

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1.3 INTRODUCTION OF DIGITALIZATION:

Digitization is the conversion of data into a digital form with the adoption of technology.
Digitization reduces human errors and, therefore,customer loyalty. Banks of all sizes and in
all regionsare making large investments in digital initiatives inorder to maintain a competitive
advantage and offerthe maximum to their customers. In addition,digitization leads to
intelligence ansolid data, which helps banks to approach customers and get closer to the
competition. By adopting digitization, banks are now providing better customer services. This
provides convenience to custom helps save time.

Today, people have access to banks 24 hours due to online banking. Managing large amounts
of cash has also become easier. Digitization has also benefited customers by facilitating
transactions without cash. Customers no longer need to store cash and can make transactions
anywhere, anytime. It is a powerful, modular and open digital participation platform that
allows people to boost agility and speed. The main steps of the digital banking process have
focused mainly on adding to the existing offer the use of new services enabled with
technology to increase accessibility and value for customers. In this paper, the study focuses
on the impact of digitalization on banking, which is a major concern with the payment
services provided by the bank to its customers.

Banking Digitalization means to use sophisticated information with the help of

communication technology along with computer science in order to permit banks to offer
better services to its customers in a protected, trustworthy and reasonably priced and edge
over other competitive banks. Theoretically banking technology is not a sole, separate
discipline but a convergence of a many dissimilar fields like Finance, Communication
Technology, Information Technology, Marketing Science, Computer Science etc.

It is a known fact that digitalization is changing the banking industry entirely. Acceleration of
a high speed networks and dropped of computing command enables possible application
which never thought before. In today‟s world data, videos, audios shared within seconds and
the lightning speed. So these things are changing the whole dynamics of the banking sector,
and it is nothing but digitalization Due to the intense use of digitalization banking sector is
moving from paper to paperless and digitalized. It is noteworthy that internal accounting and

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management system has got changed already. Now it‟s a turn of delivery system which is
being used to interact with customers.

In today‟s world digitalization is the very powerful tool; hence the financial institutions are
the backbone of the Indian economy. Therefore, the industry is gearing up for the
digitalization revolution. Across pan India all nationalized banks are adopting the digitalized
platform. Because of the wide used of IT and IT enabled services has minimized the scope
for the traditional banking system. It is a revolutionary step in this regard. It has many
benefits such as better functioning as well as to satisfy the needs of the customers.

A need is felt to give precise and error free services to the end users and it is made possible
with the help of implementation of Digitalization and it will keep a bay to traditional paper
based system in India. The major shift was made in this regard by the installation of ATMs
(Automated Teller Machines), Mobile-banking, phone banking, pc-banking as well as the
internet banking.

Previously an account holder had to go personally to visit the bank in order to deposit the
money or withdraw the money, update the bank statement manually by a teller over the
counter. The total scenario got changed since the introduction of computer based system such
as LAN, printing machines which replaced the traditional manual updating system. Then
came the ATM to withdraw the money and it was really a game changer in banking system to
facilitate the withdraw of money, deposit the money then introduced the revolutionary phone
banking system to access money from the different geographical locations. It is possible due
to the reach of the mobile phones to million people in India. Internet banking also has the
similar contribution as mobile phone has, as it changed the world of banking system.

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1.4 Need and Progress of digitalisation in bank of maharastra:

In the late 1980s, to improve customer service, accounting and record keeping the need for
computerization was felt in the Indian banking sector. Then in 1988, the Reserve Bank of
India established a committee to study Computerization in bank headed by Dr. C.
Rangarajan. The process of computerization gained pace with the reform in the Indian
economy in 1991-92. One of the main drivers of this change was driven by the growing
entries of private and foreign banks in the Banking industry. Several commercial banks began
to move towards digital customer service to remain competitive and relevant in the race. The
Commercial Banks in India have moved towards technology through the Mechanization and
Automation of the Bank with the introduction to cheaque processing based on MICR, the
electronic transfer of funds, the interconnection between bank branches and the
implementation of ATMs (ATM) have resulted in the convenience of at any banking time.
The Reserve Bank of India has taken strong initiatives to strengthen payment and settlement
systems in banks. Now the Indian government is aggressively promoting digital transactions.
The launch of United Payments Interface (UPI) and Bharat Interface for Money (BHIM) by
Natio Corporation of India (NPCI) are important steps for innovation in the payment systems
domain. UPI is a mobile interface where people can make instant transfers of funds between
accounts in different banks on the basis of a virtual address without mentioning the bank
account. Indian banks are now working hard for providing following facilities to their
customer for increasing their banking business, for attracting more customers etc.

1. Automatic Teller Machine (ATM):

The ATM is the most popular device in India, which allows customers to withdraw their
money 24 hours a day, 7 days a week. With the use of ATM card customer can perform
routine banking transactions without interacting with a human cashier. A part from cash
withdrawals, ATMs can be u paying utility bills, transfer funds between accounts, deposit
cheques and cash, balance inquiries etc.

2. Telebanking: -

Telebanking facilitates the customer to carry out banking transactions not related to cash
phone. According to this design, the automatic voice recorder is used for simpler transactions

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and queries. For complicated inquiries and transactions, manned telephone terminals are
used.

4. Electronic Funds Transfer (EFT):

Electronic Funds Transfer (EFT) is a system where anyone who wants to make payments to
another person / company, etc. one can approach bank and make cash payments or give
instructions to transfer funds directly from his/her account to the recipient / beneficiary's bank
account. Full details such as the recipient's name, bank account number, type of account
(savings or current account), bank name, city, branch name, etc. they must be provided to the
bank at the moment of requesting such transfers so that the amount of the beneficiaries'
account is correct and faster. RBI is the EFT service provider.

1.5 HISTORY:

Registered on 16th Sept 1935 with an authorized capital of Rs.lO.00 lakh and commenced
business started on 8th Feb 1936, under the chairmanship of Dr. V.G. Kale an eminent
economist. Its first manager was Mr.Gokhale a highly qualified banking personnel. The first
branch of the bank was at famous Kakakua Mansion, Laxmi Road, Pune. Known as a
common man‟s bank since inception, its initial help to small units has given birth too many of
today‟s large industrial houses in and around Maharashtra. The bank was nationalized on
19th July 1969. It expanded rapidly. It now has 1350 branches all over India. The bank has
the 123 largest network of branches by any public sector bank in the state of Maharashtra.
The bank has fine tuned its services to cater to the needs of the common man and
incorporated the largest technology in banking offering a variety of customized services. The
bank attained autonomous status in 1998. It helps in giving more and more services with
simplified procedures without intervention of Government. First branch and corporate office
was opened in 1936 at Bajirao Road Pune. Thereafter bank shifted its had office to new
corporate office at LOKMANGAL Shivaji Nagar Pune in 1978. Total number of branches are
1350 with 32 extension counters spread over 22 states and 2 union territories; Out of these,
914 branches are located in Maharashtra State and the rest are in other states. The spread over
586 rural, 197 semi-urban, 265 urban and 252 metro branches. This shows bank has not only

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presence in major cities but also in rural area. Presently bank of Maharashtra is having 226
ATM centers and proposes to have 300 centers by end of the year 2007.

The earliest forms of digital banking trace back to the advent of ATMs and cards launched in
the 1960s. As the internet emerged in the 1980s with early broadband, digital networks began
to connect retailers with suppliers and consumers to develop needs for early online catalogues
and inventory software systems.

By the 1990s the Internet became widely available and online banking started becoming the
norm. The improvement of broadband and ecommerce systems in the early 2000s led to what
resembled the modern digital banking world today. The proliferation of smartphones through
the next decade opened the door for transactions on the go beyond ATM machines. Over 60%
of consumers now use their smartphones as the preferred method for digital banking.[3]

The challenge for banks is now to facilitate demands that connect vendors with money
through channels determined by the consumer. This dynamic shapes the basis of customer
satisfaction, which can be nurtured with Customer Relationship Management (CRM)
software. Therefore, CRM must be integrated into a digital banking system, since it provides
means for banks to directly communicate with their customers.

There is a demand for end-to-end consistency and for services, optimized

on convenience and user experience. The market provides cross platform front ends, enabling
purchase decisions based on available technology such as mobile devices, with a desktop or
Smart TV at home. In order for banks to meet consumer demands, they need to keep focusing
on improving digital technology that provides agility, scalability and efficiency.

WHAT DIGITAL BANKING MEANS FOR BANK:

A study conducted in 2015 revealed that 47% of bankers see potential to improve customer
relationship through digital banking, 44% see it as a means to generate competitive
advantage, 32% as a channel for new customer acquisition. Only 16% emphasized the
potential for cost saving. Major benefits of digital benefits are:

 Business efficiency - Not only do digital platforms improve interaction with customers
and deliver their needs more quickly, they also provide methods for making internal
functions more efficient. While banks have been at the forefront of digital technology at

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 the consumer end for decades, they have not completely embraced all the benefits of
middleware to accelerate productivity.
 Cost savings - One of the keys for banks to cut costs is automated applications that
replace redundant manual labor. Traditional bank processing is costly, slow and prone to
human error, according to McKinsey & Company. Relying on people and paper also
takes up office space, which runs up energy and storage costs. Digital platforms can
future reduce costs through the synergies of more qualitative data and faster response to
market changes.
 Increased accuracy - Traditional banks that rely mainly on paper processing can have an
error rate of up to 40%, which requires reworking. Coupled with lack of IT integration
between branch and back office personnel, this problem reduces business efficiency. By
simplifying the verification process, it's easier to implement IT solutions with business
software, leading to more accurate accounting. Financial accuracy is crucial for banks to
comply with government regulations.
 Improved competitiveness - Digital solutions help manage marketing lists, allowing
banks to reach broader markets and build closer relationships with tech savvy consumers.
CRM platforms can track customer history and provide quick access to email and other
forms of online communication. It's effective for executing customer rewards programs
that can improve loyalty and satisfaction.
 Greater agility - The use of automation can speed up both external and internal
processes, both of which can improve customer satisfaction. Following the collapse of
financial markets in 2008, an increased emphasis was placed on risk management.
Instead of banks hiring and training risk management professionals, it's possible for risk
management software to detect and respond to market changes more quickly than even
seasoned professionals.
 Enhanced security - All businesses big or small face a growing number of cyber threats
that can damage reputations. In February 2016 the Internal Revenue Service announced it
had been hacked the previous year, as did several big tech companies. Banks can benefit
from extra layers of security to protect data.

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BANK END BANKING ARCHITECTURE:

A key in which digital banks can gain a significant competitive edge is developing a more
robust IT architecture. By replacing manual back-office procedures with automated software
solutions, banks can reduce employee errors and speed up processes. This paradigm shift can
lead to smaller operational units and allow managers to concentrate on improving tasks that
require human intervention.

Automation reduces the need for paper, which inevitably ends up taking up space that can be
occupied with technology. By using software that accelerates productivity up to 50%, banks
can improve customer service since they will be able to resolve issues at a faster pace. One
way a bank can improve its back end business efficiency is to divide hundreds of processes
into three categories:

 full automated
 partially automated
 manual tasks

It still isn't practical to automate all operations for many financial firms, especially those that
conduct financial reviews or provide investment advice. But the more a bank can replace
cumbersome redundant manual tasks with automation, the more it can focus on issues that
involve direct communication with customers. The obstacles currently preventing banks from
investing in a more digital back end environment are:

 banks have traditionally prioritized launching new products that are still difficult to
automate
 mergers and acquisitions, new products and government regulations have already
established complex IT architecture difficult to revise
 IT teams do not always grasp business priorities
 many banks lack the in-house IT expertise beyond traditional mainframe environments

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 1.6 Advantages of digitalization in banking:

Today, people have round-the-clock access to banks due to online banking. Managing large
amounts of cash has also become easier. Digitalization has also benefitted customers by
facilitating cashless transactions. Customers need not store cash anymore and can make
transactions at any place and time.

 Improved customer experience.

 Reduction of costs for banks and customers as well by using ATMs, cashless transactions etc.
 With more digital data available with banks, they can take data-driven dynamic decisions by
using digital analytics. This benefits both customers and banks.
 Technology is non-discriminatory. Everyone will be treated same at banks.
 Number of customers will be increased for banks because of the increased convenience of
banking.
 Digitalization reduces human error.
 Need of handling large amounts of cash will be reduced.
 Opening and maintaining bank accounts are never been this easier.
 Repetitive tasks will be eliminated by automation.
 Rural and urban gap will be eliminated.
 With the increasing cashless transactions, fake currency threat will be reduced.
 Productivity will be increased.

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1.7 Disadvantages of digitalization in banking:

Digital signals are being used more frequently in today‟s world. We live in a global economy,
so we sell and buy things around the world. Digital signals help us communicate with people
around the world quickly. Although, it can be good transmitting signals digitally, there are
many disadvantages to it. The disadvantages are file sizes, processor demands,
standardization, bandwidth, and preservation, to name a few.

The first disadvantage deals with file sizes. The disadvantage of file sizes is also the
advantage. Every file uses a certain quantity of storage or memory. You can send large files
digitally. The problem with large files is that they can take up large amounts of storage space
on your hard drive in your computer. As a result, it may prevent you from sending other files.
So, it is important as a user to watch how much storage you have on your hard drive versus
how much storage you are using.
The second disadvantage of transmitting files digitally is the strain it puts on the
computer‟s processor. Again, it is great that we can digitally transmit these files, but the
computer can be harmed because of it. Large numbers of files that take up a large amount of
space can overwhelm the computer. As a result, it will slow the functioning of the computer.
The performance of the computer is affected because of this.
The third disadvantage of working with digitization is standardization. There is not a
model or a set of guidelines so this can limit digitization. We need a common set of standards
that work with all hardware and software interchangeably. This will help move forward with
technology.
Bandwidth is the fourth disadvantage of digitization that I am going to talk
about. Bandwidth talks about the speed of transmitting data in a certain amount of time
along a communication band. When data or information is delivered or received, it can be
either fast or slow. A bandwidth that is low will result in a slower rate just as the bandwidth
that is high will result in a high rate of speed. Obliviously, everyone would like the higher
bandwidth and this is the problem. Larger files with a great deal of data can take a longer
time to be sent or received. This can cause a problem in a network.
The last challenge for digitization that I will discuss is preservation. This problem is
about how long the data or information in the files will last and how long into the future will
we be able to access the digital files. feel that preservation is the most important challenge

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facing digital technology currently. The problem is that they don‟t know how long the file
will be there. I am talking about files disappearing. This is a concern because of the content
that are on those files. Depending on what the content is, it might be extremely useful to
people or maybe even critical to health or security of our nation. Regardless of whatever it
is useful content or even critical to life, wouldn‟t it be ashamed to lose information? So, I
believe that preservation is the most important problem to solve in digital technology.

1.8 Role of digitalization in banking:

 Banks are not just a part of our lives, but have a significant role in our daily lives. For
many, day will not end without at least a single financial transaction. Thus banks
always try to adopt latest technologies to enhance customer experience.
 Digitalization is not an option for banking industry, rather it is inevitable because
every industry is being digitized and banking sector is no exception.
 Mobile banking is increasing at a fast pace more than online banking.

1.9 REFERENCES:

1. ^ "BoM appoints new MD CEO". www.livemint.com. Retrieved 2 December 2018.

2. ^ https://www.bseindia.com/bseplus/AnnualReport/532525/5325250318.pdf
3. ^ "Bank of Maharashtra to raise Rs. 394 crore from govt". Retrieved 19 February 2017.
4. ^ "Aviva, Bank of Maharashtra in bancassurance tie-up - Times of India". The Times of India.
Retrieved 15 January 2018.
5. ^ "Bank of Maharashtra, Central Bank of India and UCO Bank Raise Rs 2,348 Crore From Govt

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 Chapter-2
RESEARCH METHODOLOGY

Sr No. Title Page

No
2.1 Introduction
2.2 Statement of the Problem
2.3 Objective of the study
2.4 Hypothesis of the study
2.5 Research Methodology Adopted
2.6 Limitations of study
2.7 Significance of study
2.8 Nature and scope of study
2.9 Tools of research
2.10 Chapter Scheme

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RESEARCH AND METHODOLOGY:

2.1 INTRODUCTION:

Banks are in the business of accepting deposits for the purpose of lending, and act as
financial intermediaries between depositors with surplus funds and borrowers who are in
need of funds. From the income received or generated from such advances, expenses of
management are met.

The banks are using the deposits in lending and investment business. The risk of business loss
is equally associated with the lending activities as in other business. The primary role for
Govt. and RBI is to limit the risk & loss to depositors and thus maintain public confidence as
well as prevent collapse of the banking system. The RBI as a regulatory authority form time
to time issues guidelines to the banks and financial institutions for proper credit
administration. Tandon Committee1 (1975) recommended slotting of borrower‟s accounts
into four bands as –

a) Good

b) Average and

c) Unsatisfactory / bad and doubtful accounts.

Accordingly RBI introduced „Health Code‟ system4 (1994) for credit administration. Under
health code system, the bank loan assets were classified under eight categories such as

H C – 1: Satisfactory

H C – 2: Irregular

H C – 3: Sick but Viable

H C – 4: Sick but Non – Viable

H C – 5: Recalled

H C – 6: Suit –filed

H C – 7: Decreed

H C – 8 Bad & Doubtful

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In respect of loans which were categorized under health code No 5 to 8, interest on loan not
separately charged was booked to profit & loss accounts. However, charging of interest
provisioning and also paid tax and dividend on the income were left to be decided by the
bank. These guidelines were subjective & did not reflect the true picture of the bank health.

Pendharkar Committee2 (1981) was set up, “which recommended the classification of
advances in different categories, to index the overall quality of the assets portfolio”. It was
starting point for the introduction of the health coding system of categorizing bank loan
portfolio by the RBI in 1985.

Further the Reserve Bank of India being an authority for bank supervision felt the need to
introduce more objectivity in the assessment of the bad debts of the banks and introduced
standard relative accounting norms as per international standards for maintaining sound
banking system in the country.

As new norms to define the implementation of Narsimham Committee3 (1991) the above
objective norms and desperate accounting practices were given up, and were replaced by
objective and more scientific criteria based on prudential norms of income recognition, assets
classification, provision and capital adequacy. The Committee submitted its report in
November 1991.

Since 1992, the banking sector reforms were introduced which faced new challenges in the
ever changing scenario. The challenges were many amongst them vital challenges were “4
Cs” i.e. Credit, Customer, Computer, and Capital Restructuring. In the changing scenario, the
banks are under tremendous pressure to redefine their priorities, in order to manage these
challenges effectively for their survival and growth.

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2.2 STATEMENT OF THE PROBLEM:

After having an extensive review of literature, the researcher felt that there is ample
study on various aspect of banking sector. However, a comparative study regarding
digitalization impact on customers of Public Sector Bank has not been conducted so far.

Thus, it was felt necessary to focus light upon impact of digitalization on customers of Public
Sector Banks, in particular Thane city and Bhayander region. Keeping the objective of the
study in mind following statement of the problem had selected.

“THE COMPARATIVE STUDY OF DIGITALIZATION IMPACT ON CUSTOMERS

OF PUBLIC SECTOR BANK WITH SPECIAL REFERENCE TO THANE CITY
AND BHAYANDER REGION”.

2.3 OBJECTIVES OF THE STUDY:

1. To study the Banking services offered to the customer with respect to the Public sector
banks operating in the Thane city and Bhayander region.

2. To study the Impact of digitalization of Bank on the Customer services with respect to the
Public sector banks operating in the Thane city and Bhayander region.

3. To study the impact of digitalization of bank on the customer satisfaction with respect to
the Public sector banks operating in the Thane city and Bhayander region.

4. To compare the benefit of services being offered with respect to the Public sector banks
operating in Thane city and Bhayander region.

5. To make a comparative analyses of the performance of Public sector banks operating in

Thane city and Bhayander region.

6. To know whether the technology digitalization in Indian public sector banks is customer-
friendly in Thane city and Bhayander Region.

7. To identify the challenges in the implementation of digitalization in the public sector

banking in Thane city and Bhayander Region.

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2.4 HYPOTHESES OF THE STUDY:

1) The loan sanction procedure prevailing in the bank is prominent causing factor for
increasing NPA in cooperative and private commercial banks.

2) Increasing NPA has affected on survival of the bank.

3) Asset classification can be modified for minimizing NPA provisions.

4) The management of NPA is done more effectively by private sector banks as compared to
cooperative sector banks.

2.5 RESEARCH METHODOLOGY ADOPTED:

1 Methodology of the work Present thesis is outcome of research conducted by researcher

adopting survey method. A survey research is usually based on the sample survey or census
survey. The present work uses the sample survey method, details of which are given below

A) Universe For the sample survey universe is 27 private sector scheduled commercial banks
and 57 urban co-operative banks presently functioning in Maharashtra and three banks from
each of the sectors situated in Pune, Satara, and Kolhapur Districts have been selected on the
basis of convenience for study in hand.

B) Sampling of banks The number of total scheduled commercial banks in India is 57, in
which Public Sector Banks are 27 and Private Sector Banks are 30.There 73 co-operative
scheduled banks in India out of which 30 banks are in Maharashtra. The study covers 3 banks
from each of the sectors on convenience basis. Thus the study covers 11.11% private sector
banks and 10% cooperative sector banks functioning in Maharashtra.

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Data Collection:

Sources of Data: For the study both secondary as well as primary data were used:

A) Primary Data: Primary data was collected through a structured questionnaire from
selected banking customers and interview also taken from Bank front desk officer and IT
Managers.

B) Secondary Data: Secondary data was collected from the books, Research Paper,
Research Thesis, Research journal, Banking Report, Banking Magazine, Website and
Newspaper.

Selection of the sample Bank:

 BANK OF INDIA
 BANK OF MAHARASHTRA
 CANARA BANK
 DENA BANK

Design of Research:
The research was exploratory in nature. Populations of peoples who take for impact of
digitalization of Public Sector Banks were considered for this study. Effort was made to
throw light on most of the factors which have either indirect or direct effect on the behavior
of the consumer.

Sampling plan:

Population: The study aimed to include the customers of Public Sectors Bank in Thane
city and Bhayander region, to make comparative study of the impact of digitalization of
Public Sector Banks with special reference to Thane city and Bhayander region.

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Sample Size: Sample sizes of 840 (100 %) respondents were taken for the current study
because it is not possible to cover the whole universe in the available time period. So it is
necessary to take the sample size. The sample size was selected as 210 (25 %)customers‟
respondents of each sample bank have at least Two I.T manager and eight front desks of I.T
officers. The samples having people of age group lying between eighteen to Sixty years. The
sample was taken in the form of strata based on age, sex, and income group.

Sampling technique: The sampling technique will be probabilistic sampling more

specifically the random convenient and judgmental sampling will be used. I will go for
stratified random sampling as we are interested to study the digitalization of public sector
bank in the Thane city.

2.6 Limitation of study:

Although best of the efforts were made to conduct a prefect survey but still it faces certain
limitation. Following were certain limitation of this study.
1. The survey was conducted only on 210 respondents each bank.
2. The sample included largely public sector banks in one particular geographical area, as the
services rendered in one geographical area may differ from another.
3. The some of the respondents did not answer all the questions, which could hamper the final
results to a certain extent.
4. The study confines itself to the respondents of “Thane City and Bhayander Region” region
only. Hence findings would not be relevant to other cities.
5. Some of the respondents of the survey were unwilling to share information
6. The research was carried out in a short period of time so. Therefore the sample size and
other parameters were selected accordingly so as to finish the work given time frame.
7. Finally, the results of this study depend on the data collected from both primary and
secondary sources. Therefore, the accuracy of the results depends upon the accuracy of the
data.

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2.7 Significance of study:

The present research work is very significant from point of view of examining the role and
utility of digitalization and its impact on customers of Public Sector Bank.

Banks did a commendable job with regard to the pan India presence and rooted over the two
decades immediately following nationalization of banks in 1969.At the end of 1990s the
public sector banks had a whopping share of 90% in the entire system of the Indian banking.
By March 1992, all the public sector banks together had a phenomenal branch network of
60,646 branches spread across the length and breadth of the country and held deposits of Rs.
1,10,000 crore and advances of Rs. 66,760 crore.

They lacked the vision as to how technology will bring changes into customer relationship.
Therefore, technology adoption in banks is a result of external pressures rather than a vision
shared by the bank staff. According to K C Chakrabarty said. This has oriented the banking
technology to be more employee-friendly rather than customer-friendly

In this regard Chakrabarty said lack of long-term vision and strategy had impacted the way
technology had been used. It has been „implemented‟; it has not been embraced, optimized or
leveraged to the full. Most banks in India are using information technology to meet core
needs. The central bank said despite technology, bank penetration and productivity had not
risen as desired.

A wave of digitalization change has already occurred as banks adopted core banking
technology to enhance customer relationships and expand the market for banking services.
These technologies enable banks to approach customers and enable doorstep banking through
virtual banking. For example, technologies such as cloud computing and big data
technologies will be highly beneficial for the scale and scope economies.

1. Sukhamoy Chakrabarty Committee Report -1985

2. Ibid.
3. Ibid.
However, the usage of technology should not be limited. Unless it is employed gainfully and
helps to enhance procedural and cost efficiency, the technology adoption cannot be
considered meaningful. The technology ought to help the banks achieve cost-effective
scalability in the services they offer. Such technology should contribute to enhancing

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productivity, especially through total factor productivity growth in the banking industry. The
impact of Information Technology (IT) on the performance of Indian Public Sector Banks has
been discussed for a number of years. But Comparative study of digitalization impact on
customers of Public Sector Bank with reference to its penetration and productivity was not
carried out. Thus, the researcher felt the particular for the in-depth study and better
understanding.

2.8. Nature and scope of study:

Types of study: Keeping the above objectives in view, different research designs were
studied to find the appropriate research design for the study an exploratory design was
finalized, considering the following factors:

i. In general exploratory research is meaningful in any situation, in which the researcher

requires further understanding of the research problem/area,

ii. The exploratory research may be used to clarify concepts.

iii. An exploratory research is particularly useful in establishing priorities for further research.

Nature of the study: Digitization is the conversion of data into a digital format with the
adoption of technology. Adoption of digitalization is very important for the banking sector.
By embracing digitalization, banks can provide enhanced customer services. This provides
convenience to customers and helps in saving time. Digitalization reduces human error and
thus builds customer loyalty.

Today, people have round-the-clock access to banks due to online banking. Managing large
amounts of cash has also become easier. Digitalization has also benefitted customers by
facilitating cashless transactions. Customers need not store cash anymore and can make
transactions at any place and time.

Scope of the study: The study is confined to Public Sector Banks in India. Foreign Banks
and Private Banks have been excluded from the study, as the IT and their regulations of
Foreign Banks and Private Banks are different from Public Sector Banks. The scope includes
the analysis Indian Public Sector Banks IT organizational learning. It also covers the IT
management methods adopted by Indian Public Sector Banks as per RBI guidelines.
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Geographical Scope: The selected Thane city and Mira Bhayander region. The area Mumbai
is a developed city with literacy rate of 92.38% percent. The income of the people is an
adequate and have good standard of living. This enables a high potential growth and
development for digitalization of banking. Another sample area is mira bhayander.

Operational Scope: The research study assumes importance against the backdrop of
transition phenomenon being witnessed in the Indian public sector banking. IT has direct
effect on the way the banks will function to deliver the products and services to customers.
So an attempt will be made to study the employees‟ and customers perspective. The scope of
the study is limited to Selected Four public sector banks in Thane and Mira Bhayander
region. The study mainly focuses on the following aspects

 Banking services offered to the customer.

 Impact of digitalization of Bank on the Customer services.

 Impact of digitalization of Bank on the Customer satisfaction.

 Benefit of services being offered with respect to the Public sector banks operating.

 Comparative Analyses of the performance of Public sector banks operating.

 Challenges in the implementation of digitalization in the public sector banking.

Periodical Scope: The period the research study from 01st April, 2014 to 31stMarch 2017.
The main purpose of the study is to find out the current research trends in digitalization in
Thane city and Mira Bhayander Region.

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2.9. Tools of research:

Tools for Data Collection:

 Questionnaire
 Interview

Tools Data Analysis:

As no study can successfully completed without proper tools & techniques. The researcher
for the better presentation and right explanation has been used tools of statistics and computer
very frequently. The data is presented in the form of -

 BAR CHARTS
 PIE CHARTS
 TABLES

Research Techniques: Reliability and Validity test was also being carried out to test the
internal consistency of the questionnaire and the data for the responses being collected. For
Inferential Analysis various statistical tools and techniques in the form of Chi-square test,
Mann-Whitney U test and Wilcoxon Sign test was being used to test the Hypothesis.

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2.10 CHAPTER SCHEME:

Indian Public Sector Banking – An Overview

Chapter - 1 was introduced in nature. It gives overview of Public Sector Banking system in
India in brief, Need of the Public Sector Banks, History of Public sector Banking system,
Types of Public Sector Banks in India, Services provided by Public Sector Banking
organizations in general. The RBI policies for public sector banks, functions and problems of
public sector banks etc.

Research Design and Review of Literature

PART – I of this chapter contains the statement of research problem, the area of study, the
objectives, hypothesis, limitations and the format of the study. This chapter explained the
need of the research, importance of the study, and research design of the study, data
collection method, and data analysis and chapter scheme of the thesis.

PART – II of this chapter explains the review of the literature was taken in the second
chapter. This chapter provided the basis for the present study. Such literature was available to
the researcher on the application of information technology in Indian public sector banks
were classified according to the related topics as mentioned below.

 The first part contained the abstracts or summary of literature in the area of
Information Technology in Banks and IT organizational learning process.
 The second part was about review of Literature related to Impact of Reforms on
Indian Public Sector Banking.
 Review of Literature related to IT Applications and Service Quality of Indian Banks
 The challenges and opportunities of Indian Banking Sector However, it was a fact that
the researcher had not come across the research work on the topic selected for the
study.
 Web Search

Banking Reforms and Their Impact on Digitalization

Third chapter explains the effects of various factors including RBI reforms on the structure
and performance of Indian public sector banking. This chapter enumerated a range of driving

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forced that led the banks to the present level of Information Technology practices in public
sector banks and Computerization process of banking sector. This chapter covered
introduction about IT, IT and banks, types of IT practices, and also covered the IT services
had provided by banking organizations. Nowadays, Banks are increasingly adopting IT based
solutions, for providing better services to their customers at a minimal cost. The role of IT
has become so integrated and pervasive with banking that it is impossible to think of banking
processes without an effective IT system in place.

Comparative Study of Digitalization Of Public Sector Bank In Thane City

and Bhayander Religon

This chapter presented the data analysis by performing statistical and mathematical tools
along with interpretations and inference from the study.

PART- I of this chapter explains the profile of selected Public Sector Banks in Thane city and
Bhayander Region.

PART – II of this chapter explains comparative study between selected Public Sector Banks
in Thane city and Bhayander Region.

Customers’ Perception of Digitalization Banking In Thane City and

Kalyan Region.

Chapter 5 explains the increased competition, changing business environments; globalization

and the advancement of Information and Communications Technology were the important
factors that had forced Banking and Financial services to change in Thane city and
Bhayander Region. Demand for financial services is changing rapidly and customer behavior

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regarding these services is also adapting rapidly. Digitalization banking was the wave of the
future in Thane city as well as Bhayander Region. It provided enormous benefits to
consumers in terms of the ease and cost of transactions. But it also poses new challenges for
country authorities in regulating and supervising the financial system and in designing and
implementing macroeconomic policy. The major challenges that digitalization banking is
facing is the security variability, lack of knowledge of end users, failure of bank transitions,
user interface etc. In this study we also conclude that what factors should be enhanced to
improve digitalization banking and to meet the growing demand of customers for mobility,
speed, efficiency and economy through various technology based services

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 Chapter-3

REVIEW OF LITERATURE

Sr No. Title Page

No
3.1 Introduction
3.2 Author
3.3 References

Page | 35
REVIEW OF LITERATURE

3.1 Introduction:

Literature review is one of the most important phases in research work. The literature review
helps to define the research gap. The main aim of literature review is to identify the current
issues. Information Technology (IT) is very powerful in today‟s world, and financial
institutions are the backbone of the Indian economy. Today Indian banking industry is in the
middle of an IT revolution. All the nationalized banks and majority of the cooperative banks
in India are going for core banking solutions. The application of IT in Banks has reduced the
scope of traditional or conventional banking with manual operations. Nowadays banks have
moved from disbursed to a centralized environment, which shows the impact of information
technology on banks. Banks are using new tools and techniques to find out their customer
needs and offer them tailor made products and services. The impact of automation in banking
sector is difficult to measure. The primary search strategy was used to find the data relevant
to the research gap/ research questions. It includes journals, online databases, Ph. D thesis
from various universities, books etc. The sources for the primary search are listed below:

 INFLIBNET (Information and Library Network Centre)

 IEEE explore
 Reserve Bank of India website
 Science Direct (scientific database journal)
 IDBRT (Institute for Development and Research in Banking Technology)
 Google scholar (scholar.google.com)
 NIST Online publication
 Urban cooperative banks annual reports

The sphere of the research study is mainly linked with information security in CORE
banking, security standards and urban cooperative banks. Therefore the researcher has
reviewed the literature focusing on these domains of the study. The literatures available to the
researcher on the application of information security in Indian banks are classified according
to the related topics as mentioned below:

Page | 36
1. Ph.D. theses submitted to various universities
2. Research papers and articles published in proceedings, journals and periodicals on:

a) Cooperative banking and Information Technology

b) Information Technology in Banking a global perspective
c) Online banking security issues : Global Scenario
d) Information Security
e) Information Security Standards
f) Various articles published in news papers on information security

Information Technology (IT) is very powerful in today‟s world, and financial institutions are
the backbone of the Indian economy. Indian Banking Industry today is in the midst of an IT
revolution. Nearly, all the nationalised banks in India are going for information technology
based solutions. The application of IT in Banks has reduced the scope of traditional or
conventional banking with manual operations. Nowadays banks have moved from disbursed
to a centralised environment, which shows the impact of IT on banks. Banks are using new
tools and techniques to find out their customers need and offer them tailor made products and
services. The impact of automation in banking sector is difficult to measure.

The literature available to the researcher on the application of Information technology in

Indian banks are classified according to the related topics as mentioned below:

1. Technological development in banking sector

2. Application of IT in banking
3. IT framework for Indian banking
4. Technological developments in cooperative banks
5. Indian banking sector : challenges and opportunities

Technological development in the banking sector [1] [2] [3] [4] The technological
development in the banking sector began with the use of Advanced Ledger Posting Machines
(ALPM) in the 1980s and nowadays banks are using core banking solution (CBS) for
providing better services to their customers. Over the years several studies have been
conducted both at the industry and academic level to examine the impact of IT on banking
productivity and profitability. Dos et al. [1993][1] studied statistical correlation between IT
spending and performance measures such as profitability or stock‟s value. It is found that

Page | 37
there is an insignificant correlation between IT spending and profitability measures, implying
thereby that IT spending is unproductive.

Brynjolfsson and Hitt [1996][3], however, cautioned that these findings do not account for
the economic theory of equilibrium which implies that increased IT spending does not imply
increased profitability. More recent firm level studies, however, point a more positive picture
of IT contributions towards productivity. These findings raise several questions about mis-
measurement of output by not accounting for improved variety and quality and about whether
IT benefits are seen at the firm level or at the industry level. Such issues have been discussed
in detail by Brynjolfsson [1993][2] and to a lesser extent by Brynjolfsson and Hitt [1996].

The study conducted by Gotlieb, and Denny [1993][4], is one of the studies that deals with
the impact of IT on banking productivity per se. Computerisation is one of the factors which
improves the efficiency of the banking transactions. They concluded that higher performance
levels have been achieved without corresponding increase in the number of employees. Also,
it has been possible for Public Sector Banks and Old Private Banks to improve their
productivity and efficiency by using IT.

Committee Reports [5] [6] [7] [8] [9] Information Technology and the Communication
Networking Systems have revolutionized the functioning of banks and other financial
institutions all over the world. Reserve bank of India has played an important role in
implementation of information technology in banking sector. Various researchers have also
contributed in this regard. In addition to the work done by various scholars in the area of
Information Technology and Banking organization, RBI had appointed various committees to
work in this area. The reports of various committees are briefly summarized below:

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3.2 AUTHOR:

1. DeYoung et al. (2007): In their paper “How the Internet Affects Outputs and
Performance at Community Banks” tried to compare two different waves of adoption of
internet banking to find out how the internet can change the performance of banks. The first
wave of US banks to adopt transactional banking web sites in the late-1990s, and compare the
change in their 1999–2001. Finding of the study shows that Internet adoption has improved
the community bank profitability, chiefly through increased revenues from deposit service
charges. Internet adoption was also associated with movements of deposits from checking
accounts to money market deposit accounts. This is also responsible for the increased use of
brokered deposits, and higher average wage rates for bank employees. The result shows little
evidence of changes in the loan portfolio. Findings suggested that the initial click-and-mortar
banks (and their customers) used the Internet channel as a complement to, rather than a
substitute for, physical branches. 106 Osho,

2. Onay et al. (2008): In their research on Turkish banks entitled “The Impact of
Internet-Banking on Bank Profitability- the Case of Turkey”, investigated on the impact of
internet banking on bank profitability. Their analysis covered thirteen banks that have
adopted online banking in Turkey between 1996 and 2005. Using the approach of Hernando
and Nieto (2007) and by using specific and macroeconomics control variables they
investigated the impact of Internet banking on Return on Assets (ROA) and Return on Equity
(ROE). Their results showed that Internet banking starts contributing to banks‟ ROE with a
time lag of two years, confirming the findings of Hernando and Nieto while a negative impact
is observed for one year lagged dummy. According to their study, the Internet has changed
the dimensions of competition in the retail banking sector. It has also provided opportunities
for emerging countries to build up their financial intermediation infrastructure. Investment in
e-banking is a gradual process. The Internet banking variable has had a positive effect on the
performance of the banking system in Turkey.

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3. Gopal Karkal (1977): Said, "Some regions have done well in spreading the banking
facilities, while some regions have still very backward. Further, our clients are larger
merchants and big industrialists. They approach with their demand for larger loans and
advances, and in return give large business. If we transfer our limited resources to small
industry, agriculture etc., how can we increase our deposits, advances etc., and how can we
survive." As it give emphasis on a policy of planned and systematic branch expansion laying
stress not only on opening branches in the underdeveloped and neglected areas but also in the
providing additional banking facilities to the growing metropolitan and Chapter 1
Introduction urban areas to cope with the ever-increasing requirements of trade, industry and
commerce is more desirous.

4. Siam, A Z (2009): In his study entitled “The Effect of Banks Merger on Electronic
Banking Services Competency”, tried to present the benefits and consequences of the latest
technology used in banking industries. In addition, it has focused on the dynamics of the
banking sector, electronic banking services and new courses especially with mergers that
constitute most of these mechanisms. The study discussed that how this new activity meets
with the demands of customers. Furthermore, how banks deal with such services while taking
into consideration of cost reduction and ultimately higher profits and to achieve excellent
performance. The results revealed that banks consolidation helps the new entity to adopt
many new systems to make its operations more effective and more rapid. The adoption of
electronic services by banks can be achieved on the basis of funds and skilled human
resources availability. The bank consolidations lead to increase the customers quantitatively
and qualitatively along with their increased loyalty to the bank. Banks consolidation helps in
expanding their electronic services such as automatic teller and visa card to the customers.

5. Uppal, R K (2010): Showed in his study entitled “Emerging Issues and Strategies to
Enhance M-banking Services”, that in present day total automation of banking operations is
an imperative need for all banks to attract more customers, provide efficient services, and
survive in the emerging new competition, apart from the profit motive which is the primary
objective of the business. According to study in order to achieve these goals of business,

Page | 40
various channels have been developed through technology by banks. „Mobile banking‟ is
one of the best alternative channels available to customers for quick, correct and efficient
service at anytime and anywhere. This paper tried to explore the extent of mobile banking in
Indian banking industry where cell phone users are increasing at an unexpected rate. On the
basis of analysis, the paper concluded that the private sector banks are on the top in providing
the M-banking services to their customers and have high profitability as compared to other
bank groups under study except foreign banks. The paper also highlighted the benefits of M-
banking to customers as well as to bankers and suggests some strategies with their possible
solutions like spreading awareness regarding M-banking and increasing its area and scope to
enhance M-banking services in India, particularly in rural and semi-urban areas.

6. Jalal-Karim and Hamdan (2010): In their paper entitled “The Impact of

Information Technology on Improving Banking Performance Matrix: Jordanian Banks as
Case Study”, examined the level of use of IT by 15 Jordanian Banks for a period of five
years, and then explored the impression on improving the performance of two forms of
matrix. The first matrix is of financial performance which comprises Market Value-Added
(MVA), Return on Investment (ROI) and Earning per Share (EPR) and the second matrix is
of operational performance, which includes the Net Profit Margin (NPM), Return on Assets
(ROA) and Profitability of Employee (PE). Utilization of IT by Jordanian banks have been
measured by testing the level of investment in Hardware, Software, Internet Banking, Phone
banking, number of ATMs, use of Cyber branches and Banking via SMS. The results of the
measurements indicated that there is a positive impact on the use of MIS in Jordanian banks
in the market value added (MVA), Earnings per Share (EPS), Return on Assets (ROA), Net
Profit Margin (NMP).

7. Desai (1978): Conducted a study entitled "Measuring Staff Productivity in Bank - A

New Approach" in 1981, covering a regional office of a premier bank having 155 branches in
the region. Primary objective of the study was to detect and correct staffing Imbalances. The
study emphasized on providing for the management of productivity related staff development
technique. He followed it up with another study of Patna Circle of the bank having 607
branches, in 1982. The main objective again was to provide management with the

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productivitybased technique for rational manpower development. It identified
'LabourIntensive and Less Labour-Intensive' banking sector and identified pockets of staffing
imbalances. He felt that a services industry like banking with wide variations in work mix, a
universally applicable and fully scientific formula is difficult to involve in any area of
management.

8. Dr. Yashawant Patil (2006) [15]: Wrote that according to the National Association
of Software and Services Companies (ASSCOM), the IT market for banks, $500 million in
2002, is expected to grow by 25 per cent a year for the next few years. An international bank
on an average spends around 9% of its revenues on IT annually. In India, state owned banks
spend only half a percent of their revenues. Though the private banks spend 4-5 %, they still
have a long way to go. In contrast the spending on IT by cooperative banks especially urban
cooperative banks in India is comparatively very low than private banks and may end even
0.5 to 2 per cent. It is worth to mention here that nationalized banks in India have taken bold
initiatives in deployment of new technology. The cooperative banks are no exception in this
technology race and the COSMOS Cooperative Bank, Pune in Maharashtra and the Kerla
State Cooperative Bank have moved for core banking solution and many urban cooperative
banks are in process of shifting to core banking. The author suggested that the cooperative
banks of all levels Viz. state, district and cooperative urban banks therefore have to also
ensure that technologies are continuously updated to achieve a high degree of risk
management capability. In addition, cooperative banks would need to take measures to have
appropriate technology for access control and security concern in today‟ s highly competitive
environment. The cooperative banks thus have to have more attention on Information
Technology deployment with IT policies and procedures in place to guide these banks on the
lines of prevailing standards and solutions. [15] Dr.Yashawant Patil, “Information
Technology

9. Dr. Vilas Bhikaji Khandare (2012)[14]: The study was focused mainly on issues
in customers' services of urban cooperative banks in Beed district. The study focused on
whether urban cooperative banks stands in the atmosphere of liberalization, whether urban
banks provide modern services like other banks and whether urban banks can understand the
problems of customers. The primary data were collected from 200 customers in the form of

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questionnaire that were taken 50 from each selected urban cooperative banks in Beed district.
The growth performance parameters of urban cooperative banks in Beed district shows on an
average positive growth rates during the study period. It is observed from the study that the
farmer and female customers of these banks are only 5 and 8.5 percent respectively. 63
percent customers utilize demand draft service; 18 percent customers utilize locker facility, 6
percent customers utilized overdraft facility and 74 percent customer‟ s utilized clearing and
transfer facility.

10. B. Muniraja Sekhar Dr. B. Sudhir (2012)[13]: In this paper authors write that
currently, there are about 1872 urban co-operative banks in India, which form 14% of the
banking sector. While the focus has always been on private and public sector banks who are
riding the technology wave to emerge as front runners in the global banking arena,
cooperative banks, have been laggards when it comes to technology adoption. The drivers of
performance for UCBs, as for any organization, includes indicators such as increased
employee satisfaction, increased customer satisfaction, financial stability, lower average time
to resolution, and innovations in information and communications technology (ICT). Co-
operative banks can play a significant role in rural financial inclusion if they ably take
advantage of the technology in place. Besides enabling faster services, their decision to bring
technology into play will open up possibilities of providing new cost-effective banking
products and services to the farming community in particular. It is envisaged that post
implementation of CBS including Financial Inclusion, Cooperative banks will also
implement internet banking, phone banking, ATM network etc. According to industry
watchers, technology deployments like CBS are a big challenge in cooperative banks. Factors
such as high costs of implementation and maintenance coupled with lack of regional

11. Jyoti Gupta, Suman Jain (2012) [16]: In their study authors revealed that at
present there are several cooperative banks which are performing multipurpose functions of
financial, administrative, supervisory and development in nature of expansion and
development of cooperative credit system. In brief, the cooperative banks have to act as a
friend, philosopher and guide to entire cooperative structure. The study is based on some

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successful co-op banks in Delhi (India). The descriptive type of research was used in this
study in order to identify the lending practices of bank and determining customer‟ s level of
satisfaction. The data collection tools method used were questionnaire and interview of the
experienced loan officers. In this paper the researchers surveyed about 200 customers in
Delhi city. The study of the bank‟s performance along with the lending practices provided to
the customers was herewith undertaken. The study shows that 52% of the respondents say
that customer service of the bank is good, 24% says that it is excellent and another 24 % says
its average and only 2 % says it‟s poor. The study revealed that respondents suggested that
the banks should adopt the latest technology of the banking like ATMs, internet / online
banking, credit cards etc. so as to bring the banks at par with the private sector banks.

12. Mr. Anupam Mitra (2011) [18]: Discussed the need of corporate governance in
urban cooperative banks in India. The researcher observed that in the postliberalization
period the urban co-operative banks, particularly those in larger towns, are facing tougher
competition from commercial banks. Even public sector banks have shrugged off their
traditional lethargy and have become very aggressive. One of the vital problems, which
vitiate cooperative movement, is the interference of the politicians in the organization. To
exercise proper control on their operation in order to safeguard depositors and other
stakeholder‟ s interest, good corporate governance is a mind set, a question of value system,
a way of keeping one above one‟ s personal interest assigning priority to the cooperative
interest and the way in which those with power, use that power. It is the reflection of quality
of management. The author also suggested that the following factors

13. Nagarkar U. H., Shivagaje A. J (2014)[19]: In their paper author focused on the
information technology deployment in urban cooperative bank. Due to liberalization like
many other sectors, banking sector has also undergone a drastic change. Use of information
technology and revision of licensing policy has widened geographic scope of banking
services (Patil Y.S., 2003). The article was an attempt to take overview of these changes as
experienced by bank employees. The study was based on survey of 400 employees from 16
cooperative banks out of 21 banks having their head office in Ahmednagar district. The
average proportion of bank employee in sample was 15% of total bank employees. Authors

Page | 44
stated that even employees do not have formal computer education with short term training
programs on computer. In their paper authors suggested that to update the computer skill
banks should periodically arrange the training programs for employees. This will not only
update the computer skill but also elevate the confidence of employees.

14. Subrahmanyam (1982): Has discussed conceptual issues in productivity

measurement approach to inter-bank and inter-temporal productivity comparisons. He has
highlighted some of the conceptual issues that are faced in the Total Factor Productivity
(TFP) measurement associated with neutral technical progress. Out of a non-parametric index
number approach and a parametric production function approach, he confined to economic
implications of non-parametric approach. He has examined particularly, the mechanics of
Laspayres and Divisia index number procedures; their affinity to linear and homogenous
translong production functions and preferred Divisia index over Laspayers index. Limitation
of Divisia index and index number approach has also been pointed out. He felt that
production function approach may be more advantageous as it can handle problems arising
due to non-separability of inputs and outputs non-constant return to scales etc. In his paper
concentrating on methodological issues involved in the measurement and comparison of
productivity levels in commercial banks at the aggregate level, has discussed the use of
Kendrick, Solow

15. Vandana Gautam and Dr. B.S. Bhatia (2011) [20]: In their paper attempt has
been made by authors to assess the impact of global financial crisis on Indian rural credit
market which is led by cooperative banks. Any major impact on fund management,
productivity, asset quality and business growth of cooperative banks of Punjab has been
analyzed. The study concluded that cooperative banks have fortunately been able to weather
the financial crisis relatively well so far and have not required state support. This is due to the
fact that they have no exposure to toxic assets, a predominant focus on domestic banking,
straight forward banking products, strong capitalization, and principally conservative risk
management. In spite of cooperative banks being resilient to the crisis some lessons need to
be taken from the present scenario to sustain its position in the competitive era.

Page | 45
16. Dr. Mohd Ashraf Ali, Azam Mmalik, Ashraf Imam (2012) [23]: In this
paper authors discussed the benefits and challenges in the Indian banking sector through E-
commerce. Authors stated that the e-banking in India have its own advantages to both the
banks and the customers. As India is second largest populous country and the ¾ population
lives in rural areas and there is a proper need to divert the efforts the entire areas cities as well
as villages. The use of information technology not only reduces the costs of operation but
also would be effective, easy to maintain, speedier and highly competitive. The most
important requirement for the successful working of internet banking is the adoption of the
best security method. The banks cannot remain unapproachable from this perception of e-
banking, and they should bring appropriate changes to meet the necessities and challenges of
e-banking. The challenges posed by the internet banking are need for standardization of
hardware, operating systems, system software, and application software to facilitate
interconnectivity of systems across branches and need for high levels of security. The authors
also addressed the issue of human relations in a computerized environment.

17. Mr. V. A. James, Dr. Rupa Gunaseelan (2012) [25]: The authors paper
analyzed the working results of a large, old private sector banks which had branches all over
India and who had successfully implemented CBS, for finding out the changes in their total
business development by growth in deposits and advances, effectiveness in nonperforming
assets (NPA) management, changes in interest and noninterest income (other income), share
values and earnings per share (EPS). This paper analyzed the working results for 10 years (5
years pre and 5 years post CBS period) so that the changes in each parameter can be
effectively studied and the rate of change can be well established, thereby giving clear
indications to other peer group banks, which are yet to take a decision on CBS
implementation.

18. Neha Dixit, Dr. Saroj K. Datta (2010) [27]: Wrote that the numbers of internet
users have increased dramatically, but most of them are reluctant to provide sensitive
personal information to websites because they do not trust e-commerce security. They list out
the factors which are affecting the acceptance of e-banking services among adult customers
and also indicated level of concern regarding security and privacy issues in Indian context.
The finding depicts many factors like security and privacy, trust, innovativeness, familiarity;
Page | 46
awareness level increases the acceptance of e-banking services among Indian customers. The
finding showed that in spite of their security and privacy concern, adult customers are willing
to adopt online banking if banks provide necessary guidance. They recommended to the
banks that they have to increase the level of trust between banks‟ website and customers.
The importance of security and privacy for the acceptance of internet banking has been noted
in many banks study and found that people have weak understanding of internet banking,
although they are aware about risk. It was clear those adult customers are ready to adopt
online banking if banks take necessary action. Authors suggested following strategies should
be applied by banks.

 Banks should ensure that online banking is safe and secure for financial transaction like as
traditional banking.

 Educate the customer regarding uses of online banking as well as security and privacy of
their accounts.

19. Biria Institute of Scientific Research (1983): Conducted a study to evaluate the
performance of nationalized banks in comparison with that of banks in private sector. The
emphasis of the study was on the objectives of nationalization and their achievements,
relative performance of private sector banks and nationalized banks since 1969 and the effect
of nationalization on rest of the banking sector. The study reveals that the growth and
development in banking after Chapter 1 Introduction nationalization was not just because of
transfer of ownerslnip. It was rather because of various incentives and punitive measures that
were implennented with more vigilance and care after 196S by the government and the
Reserve Bank of India to make banks fulfill their social responsibilities. Similarly, in the
same sphere, even better results were achieved by non-nationalized banks. The performance
of private sector banks in the Post-nationalization period was noteworthy, especially because
of the odds they faced in securing the growth of the business. The achievement of
significantly high growth in deposits, advances, and branches etc. clearly showed the high
quality of entrepreneurship and management of these banks.

Page | 47
20. P.K. Gupta, Jamia Millia Islamia (2008) [28]: Studied that internet banking
had attracted the attention of banks, securities trading firms, brokerage houses, insurance
companies, regulators and lawmakers in developing nations since the late 1990s. The
researchers showed that impact of internet banking on cost savings, revenue growth and
increased customer satisfaction on industry was tremendous and can be a potential tool for
building a sound strategy. However, it has raised many public policy issues before the
banking regulators and government agencies. The important suggestion made by the authors
was that reliable and systematic information on the scope of internet banking in Indian
context was still not sufficient. The paper fills significant gaps in knowledge about the
consumer‟s perspective of internet banking. The paper identified the weaknesses of
conventional banking and explores the consumer awareness, use patterns, satisfaction and
preferences for internet banking vis-à-vis conventional form of banking and also highlights
the factors that may affect the bank‟s strategy to adopt internet banking. It was also addressed
that the regulatory and supervisory concerns of internet banking. It was concluded that
internet banking in India is only at its primitive stage dominated by the Indian private and
foreign banks. The risks associated with internet banking are many, which the banks have to
model using sophisticated systems and extensive use of technology. The legal framework as
its exits requires an updating to streamline and handle the issues associated with internet
banking. The functional model can be used to prioritize perceptual variable concerning
consumer behavior so that value to the consumer can be maximized. The banks can focus on
strategic consumer groups to maximize its revenues from internet banking.

3.3 References:

1) www.rbi.com

2) www.Banknetindia.com

3) http://www.banknetindia.com/banking/ibkg.htm

Page | 48
 Chapter-4

DATA COLLECTION AND ANALYSIS

Sr No. Title Page

No
4.1 Introduction
4.2 Method of Data Collection
4.3 Primary Data

Page | 49
DATA COLLECTION & ANALYSIS

4.1 INTRODUCTION

Data collection is the process of gathering and measuring information on variables of interest,
in an established systematic fashion that enables one to answer stated research
questions, test hypotheses, and evaluate outcomes. The data collection component of
research is common to all fields of study including physical and social sciences, humanities,
business, etc. While methods vary by discipline, the emphasis on ensuring accurate and
honest collection remains the same. The goal for all data collection is to capture quality
evidence that then translates to rich data analysis and allows the building of a convincing and
credible answer to questions that have been posed. Regardless of the field of study or
preference for defining data (quantitative, qualitative), accurate data collection is
essential to maintaining the integrity of research. Both the selection of appropriate data
collection instruments (existing, modified, or newly developed) and clearly delineated
instructions for their correct use reduce the likelihood of errors occurring. Data collection is
one of the most important stages in conducting a research. You can have the best research
design in the world but if you cannot collect the required data you will be not be able to
complete your project. Data collection is a very demanding job which needs thorough
planning, hard work, patience, perseverance and more to be able to complete the task
successfully. Data collection starts with determining what kind of data required followed
by the selection of a sample from a certain population. After that, you need to use a certain
instrument to collect the data from the selected sample.

Page | 50
4.2 METHOD OF DATA COLLECTION

1. PRIMARY DATA:

Primary data may be collected either through observation or through direct communication
with respondents in one form or another through personal interviews. There are several ways
of collecting primary data.

Following are the sources of collecting of Primary Data:

(i) Observation method,

(ii) Interview method,

(iii) Questionnaire method, and

(iv) Schedule method.

i. Observation Method:
In observation method, the information is sought by way of investigator‟s own direct
observation without asking from the respondent. The main advantage of this method is that it
is free from subjective biasness, as it is free from respondent‟s willingness. It is, however, an
expensive and time consuming method. Moreover, the information provided by this method
is very limited and some of the more busy people like executives may not be accessible to
direct observation.

ii. Interview Method:

Primary data may be collected either through personal interviews or through telephonic
interviews:
(a) In the personal interviews the interviewer asks questions generally in a face to face
contact. Through interview method more and reliable information may be obtained. Personal
information can be obtained easily under this method. It is, however, a very expensive and
time consuming method, especially when large and widely spread geographical sample is
taken. Certain types of respondents, such as officials, executives or people of high income
groups, may not be easily accessible.

Page | 51
In this method, the respondent may give wrong and imaginary information. For effective
interview there should be a good rapport with respondents which is often very difficult to
develop. For a good result the interviewer‟s approach should be friendly, courteous,
conversational and unbiased for which a proper training is required.

iii. Questionnaire Method:

In this method a questionnaire is mailed to the person concerned with a request to answer the
questions and return the questionnaire. This method is most extensively applied in various
researches of human and economic geography.

iv. Schedule Method:

This method of data collection is very much like the collection of data through
questionnaires, with little difference that lies in the fact that schedules (proforma containing a
set of questions) are being filled in by the enumerators who are specially appointed for this
purpose. Enumerators explain the aims and objects of the investigation and also remove the
difficulties which any respondent may feel in understanding the implications of a particular
question.

This method is very useful in extensive enquiries and can lead to fairly reliable results. It is,
however, very expensive and is usually adopted in investigations conducted by governmental
agencies or by some organizations. Population census all over the world is conducted through
this method.

For the selection of an appropriate method, the objective, nature and scope of study, the
availability of time and funds, and the level of precision required are to be taken into
consideration.

Page | 52
2. SECONDARY DATA:

Following are the sources of collecting of Secondary Data:

 Internal sources: Internal sources of secondary data are usually for making
application
 Sales Records
 Marketing Activity
 Cost Information
 Distributor reports and Feedback
 Customers Feedback

 Externals sources: External sources of secondary data are usually for financial
application
 Journals
 Books
 Magazines
 Newspaper
 Libraries
 Internet

Page | 53
4.3 PRIMARY DATA:

Table 4.3.1 AGE:

NO. AGE RESPONSES
1 15 - 20 38
2 20 - 30 36
3 30 - 40 17
4 40 - 50 9
5 50 - 60 0
TOTAL 100

Graph 4.3.1 AGE:

INTERPRETATION;

 Total no of respondents are 100 person.

 The respondents of age group 15-20 are 38 person.
 The respondents of age group 20-30are 36 person.
 The respondents of age group 30-40 are 17 person.
 The respondents of age group 40-50 are 9 person.
 The respondents of age group 50-60 are 0 person

Page | 54
Table 4.3.2 GENDER:

NO GENDER RESPONSES
1 FEMALE 56
2 MALE 44
TOTAL 100

Graph 4.3.2 GENDER:

INTERPRETATION;

 Total no of respondents are 100 person.

 No of male respondent are 56 person.
 No of female respondent are 44 person.

Page | 55
Table 4.3.3 Marital Status:

NO MARITAL STATUS RESPONSES

1 MARRIED 29
2 UNMARRIED 71
TOTAL 100

Graph 4.3.3 Marital Status:

INTERPRETATION;

 Total no of respondents are 100 person.

 No of married respondent are 29 person.
 No of unmarried respondent are 71 person.

Page | 56
Table 4.3.4 Qualification:

NO QUALIFICATION RESPONSES
1 SSC 13
2 HSC 52
3 GRADUATE 34
4 POST GRADUATE 1
5 PROFESSIONAL 0
TOTAL 100

Graph 4.3.4 Qualification:

INTERPRETATION;

 Total no of respondents are 100 person.

 SSC respondents are 13 person.
 HSC respondents are 52 person.
 Graduated respondents 34 person.
 Post Graduated respondents 1 person.
 Professional respondents 0 person.

Page | 57
Table 4.3.5 Occupation:

NO OCCUPATION RESPONSES
1 STUDENT 39
2 PRIVATE JOB 39
3 PUBLIC JOB 20
4 BUSINESS 1
5 PROFESSIONALS 1
TOTAL 100

Graph 4.3.5 Occupation:

INTERPRETATION;

 Total no of respondents are 100 person.

 No of Student are 39 person.
 No of Private Job are 39 person.
 No of Public Job are 20 person.
 No of Business are 1 person.
 No of Professional are 1 person.

Page | 58
Table 4.3.6 Monthly Income:

NO MONTHLY INCOME RESPONSES

1 0 - 25000 76
2 25000 - 50000 24
3 50000 - 100000 0
4 100000 & Above 0
TOTAL 100

Graph 4.3.6 Monthly Income:

INTERPRETATION;

 Total no of respondents are 100 person.

 The respondents of monthly income group Rs 0-25000 are 76 person.
 The respondents of monthly income group Rs 25000-50000 are 24 person.
 The respondents of monthly income group Rs 50000-100000 are 0 person.
 The respondents of monthly income group Rs 100000 & above are 0 person.

Page | 59
Table 4.3.7 Are you aware of Service Digitalization of Banking:

NO Services Digitalization of bank RESPONSES

1 YES 90
2 NO 10
TOTAL 100

Graph 4.3.7 Are you aware of Service Digitalization of Banking:

INTERPRETATION;

 Total no of respondents are 100 person.

 The no of respondents aware of service Digitalization of Banking are 90 person.
 The no of respondents not aware of service Digitalization of Banking are 10 person.

Page | 60
Table 4.3.8 Are you using E- Banking:

NO Are You Using E-Banking RESPONSES

1 YES 81
2 NO 19
TOTAL 100

Graph 4.3.8 Are you using E- Banking:

INTERPRETATION;

 Total no of respondents are 100 person.

 The no of respondents using E- Banking are 81 person.
 The no of respondents not using E- Banking are 19 person.

Page | 61
Table 4.3.9 While Opening an account, are you aware of E- banking services
provided by the bank:

NO Are You Aware Of E-Banking Services RESPONSES

1 YES 81
2 NO 19
TOTAL 100

Graph 4.3.9 While Opening an account, are you aware of E- banking services
provided by the bank:

INTERPRETATION;

 Total no of respondents are 100 person.

 The no of respondents aware of E- Banking service provided by the bank are 81
person.
 The no of respondents not aware of E- Banking service provided by the bank are 19
person.

Page | 62
Table 4.3.10 Manual Banking is more convenient than Digital Banking;

NO Manual Is More Convenient Than Digital Banking RESPONSES

1 Strongly Agree 19
2 Agree 44
3 Neutral 20
4 Disagree 14
5 Strongly Disagree 3
TOTAL 100

Graph 4.3.10 Manual Banking is more convenient than Digital Banking;

INTERPRETATION;

 Total no of respondents are 100 person.

 The no of respondents strongly agree manual banking is more convenient than
digital banking are 19 person.
 The no of respondents agree manual banking is more convenient than digital banking
are 44 person.
 The no of respondents neutral manual banking is more convenient than digital
banking are 20 person.
 The no of respondents disagree manual banking is more convenient than digital
banking are 14 person.
 The no of respondents strongly disagree manual banking is more convenient than
digital banking are 3 perso

Page | 63
Table 4.3.11 How you perceive Digital Banking System:
NO Perceive Digital Banking System RESPONSES
1 Not Easy 25
2 Complicated Technique 46
3 Difficult Accessibility 21
4 Poor Feedback 8
TOTAL 100

Graph 4.3.11 How you perceive Digital Banking System:

INTERPRETATION;

 Total no of respondents are 100 person.

 The no of respondents not easy perceive digital banking system are 25 person.
 The no of respondents complicated technique perceive digital banking system are 46
person.
 The no of respondents difficult accessibility perceive digital banking system are 21
person.
 The no of respondents Poor feedback perceive digital banking system are 8 person.

Page | 64
Table 4.3.12 Why you not using Online Banking Services:

NO Why You Not Using Online Banking RESPONSES

1 Do not have interest at home 27
2 Don‟t trust interest services when it come to managing my money 34
3 I prefer to have personal human relation 20
4 Find the process to difficult 19
TOTAL 100

Graph 4.3.12 Why you not using Online Banking Services:

INTERPRETATION;

 Total no of respondents are 100 person.

 The no of respondents do not have internet at home in Online Banking Services are
27 person.
 The no of respondents don‟t trust interest services when it comes to managing my
money in Online Banking Services are 34 person.
 The no of respondents I prefer to have personal human relation in Online Banking
services are 20 person.
 The no of respondents process is to difficult in Online Banking Services are 19
person.

Page | 65
Table 4.3.13 Which Bank you preferred:

NO Which Bank You Preferred RESPONSES

1 Bank Of Maharastra 39
2 Bank Of India 26
3 State Bank Of India 29
4 HDFC 6
TOTAL 100

Graph 4.3.13 Which Bank you preferred:

INTERPRETATION;

 Total no of respondents are 100 person.

 The no of respondents preferred Bank Of Maharashtra are 39 person.
 The no of respondents preferred Bank Of India are 26 person.
 The no of respondents preferred State Bank Of India are 29 person.
 The no of respondents preferred HDFC Bank are 6 person.

Page | 66
Table 4.3.14 Why this Bank you Selected:

NO Why This Bank You Selected RESPONSES

1 Service Is Good 68
2 They Provide Security 32
TOTAL 100

Graph 4.3.14 Why this Bank you Selected:

INTERPRETATION;

 Total no of respondents are 100 person.

 No of respondents the bank is selected because its service is good are 68 person.
 No of respondents the bank is selected because its they provide security are 32
person.

Page | 67
Table 4.3.15 Which is the main reason for you to use Digitalization:

NO Which Is Reason You Use Digitalization RESPONSES

1 Better Information 31
2 24 Hr. Services 56
3 Limited Time Available 13
TOTAL 100
Graph 4.3.15 Which is the main reason for you to use Digitalization:

INTERPRETATION;

 Total no of respondents are 100 person.

 Which one is the main reason for you to use Digitalization Better information no of
respondent are 31 person.
 Which one is the main reason for you to use Digitalization 24 Hr services no of
respondent are 56 person.
 Which one is the main reason for you to use Digitalization limited time available no
of respondent are 13 person.

Page | 68
Table 4.3.16 Frequency of Transaction:

NO Frequency Of Transection RESPONSES

1 2-3 time per week 16
2 Daily 19
3 Only Per Month 59
4 Only Per Week 6
TOTAL 100

Graph 4.3.16 Frequency of Transaction:

INTERPRETATION;

 Total no of respondents are 100 person.

 Frequency of Transection 2-3 times per week no of respondents are 16 person.
 Frequency of Transection Daily no of respondents are 19 person.
 Frequency of Transection Only per Month no of respondents are 59 person.
 Frequency of Transection only per week no of respondents are 6 person.

Page | 69
Table 4.3.17 Are you Satisfied with the using of Digitalization:

NO Satisfied The Using Of Digitalization RESPONSES

1 YES 86
2 NO 14
TOTAL 100

Graph 4.3.17 Are you satisfied with the using of Digitalization:

INTERPRETATION;

 Total no of respondents are 100 person.

 Are you satisfied with the using of Digitalization no of respondents are 86 person.
 Are you not satisfied with the using of Digitalization no of respondents are 14 person.

Page | 70
Table 4.3.18 If Application form is Available on the website then how a
Customer Submit that:

NO How A Customer Submit RESPONSES

1 Fax 6
2 Mail 34
3 Online 51
4 Other 9
TOTAL 100

Graph 4.3.18 If Application form is Available on the website then how a

Customer Submit that:

INTERPRETATION;

 Total no of respondents are 100 person.

 If application form is available on the website than customer submit that Fax are 6
person.
 If application form is available on the website than customer submit that Mail are 34
person.
 If application form is available on the website than customer submit that Online are
51 person.
 If application form is available on the website than customer submit that other are 9
person.

Page | 71
Table 4.3.19 Did the bank do a Cost analysis Specifically on Digital Banking:

NO Cost Analysis Specifically On Digital Banking RESPONSES

1 YES 84
2 NO 16
TOTAL 100

Graph 4.3.19 Did the bank do a Cost analysis Specifically on Digital Banking:

INTERPRETATION;

 Total no of respondents are 100 person.

 The no of respondents do a cost analysis specifically on digital banking are 84
person.
 The no of respondents do not a cost analysis specifically on digital banking are 16
person.

Page | 72
 Chapter-5

FINDINGS, SUGGESTIONS AND CONCLUSION

Sr No. Title Page

No
5.1 Introduction
5.2 Findings
5.3 Suggestions
5.4 Conclusion

Page | 73
FINDING, SUGGESTION, CONCLUSION:

5.1 INTRODUCTION:

A study on “Digitalization impact on Bank of Maharashtra with special reference to

with Kalyan and Dimbivli” is based on analytical research methodology. The researcher has
finely has used primary as well as secondary sources of data collected and same is being
analyzed with different tools and techniques for interpretation and methodological finding of
the very study. This topic will give the brief summary of finding and researcher suggestion
and recommendation related to area of his study.

5.2 FINDING:

Following were the finding of the study:

 Age group of 15-20 is more aware about service offered by digitalization of bank of
maharastra whereas age group of 40-50 is less aware of such services.
 Female is more aware about service offered by digitalization of bank of maharastra
whereas male is less aware of such services.
 HSC student is more aware about service offered by digitalization of bank of
maharastra whereas post graduate student is less aware of such services.
 81% of the respondents are using E- Banking services. This shows at remaining
number of respondent are not using E- Banking services.
 81% of the respondents are aware of E-banking services provided by the bank.. This
shows at remaining number of respondent are not aware of E- Banking services
provided by the bank.
 44% of the respondents are manual banking is more convenient than digital banking.
This shows that remaining number of respondents are manual banking is less
convenient than digital banking.
 46% of the respondents are perceive digital banking system is complicated technique.
This shows at minimum number of respondent are perceive digital banking system is
poor feedback.

Page | 74
 34% of the respondents are don‟t trust internet services when it comes to managing
my money. 27% of the respondents are do not have interest at home. 20% of the
respondents are prefer to have personal human relation & 19% of the respondents are
find the process to difficult.
 39% of the respondents are preferred by bank of maharastra. 29% of the respondents
are preferred by state bank of India. 26% of the respondents are preferred by bank of
India & 6% of the respondents are preferred by HDFC Bank.
 Why this bank selected because 68 respondents are called service is good & other 32
respondents are called they provide security.

 56% of the respondents are the main reasons for use digitalization is 24 Hr. services.
31% of the respondents are the main reasons for use digitalization is better
information & 13% of the respondents are the main reasons for use digitalization is
limited time available.
 59% of the respondents are only per month frequency of transaction. 19% of the
respondents are daily frequency of transaction. 16% of the respondents are 2-3 times
per week frequency of transaction & 6% of the respondents are only per week
frequency of transaction.
 86% of the respondents are satisfied with the using of digitalization & 14% of the
respondents are not satisfied with the using of digitalization.
 84% of the respondents are bank do a cost analysis specifically on digital banking &
16% of the respondents are not bank do a cost analysis specifically on digital banking.

Page | 75
5.3 Suggestions:

The following suggestions are recommended for enhancing e-banking / internet banking
services of banks to the customers
1) Banks should take necessary steps to create awareness among rural people about the
advantages of e-banking / internet banking services available in the banks.
2) The e-banking / internet banking system should be enhanced to make the online enquiry
and online payment much easier to the customers.
3) Public sector banks should improve their e-banking / internet banking services to compete
with their private sector counterparts.
4) Most of the customers have not availed of the e-banking / internet banking services
because they do not trust the internet channel presuming it as complicated. So banks may set
up a team of personnel to train the customers to get acquainted with internet channel.
5) The bank customers have perceived the risk of getting wrong information from e-banking /
internet banking services. These illusions should be removed from the minds of the customers
by bank people as these factors are the barriers for most of the customers for not adopting
these services.
6) Though e-banking / internet banking is convenient and easy to use, customers are afraid of
adopting these services because they think that using these “services are difficult and
complicated”. So, on-site training can be provided to the bank customers who intend to use e-
banking / internet banking services.

Page | 76
General Suggestions:

The delivery of financial services at affordable costs to vast sections of people including
disadvantaged and low income groups‟ is relates to financial inclusion. Unrestrained access
to public goods and services is the sine qua non of an open and efficient society.

It is argued that as banking services are in the nature of public good, it is essential that
availability of banking and payment services to the entire population without discrimination
is the prime objective of public policy

To achieve this sound financial and banking service is essential and therefore Indian bankers
should take resolutions to implement the policy of “inclusion” in all the branches, which
enable its customers to enhance the knowledge of e-banking and avail all form of banking
services.

It will include the maximum number of people under the shelter of financial inclusion for this
purpose, it is the duty of the bankers to inculcate the feeling of that e-banking /internet
banking is safe and secure. This can be possible only when a banker take steps to have a
separate on-line center in their premises with enough number of computers and uninterrupted
internet facility.

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5.4 Conclusion:

Based on this study, the opinion of the sample respondents among the bank customers the
various aspects of e-banking / internet banking services provided by public and private sector
banks are evaluated using appropriate statistical techniques such as Cross tabulation analysis
with Kruskal-Wallis test, t-test in addition to descriptive statistics like mean and standard
deviation.

It is concluded from the results of the study that the usage of ATM, Telebanking and Internet
banking are perceived as important and the use of these services is associated with socio-
economic and demographic characteristics of the respondents. Most of the services through e-
banking / internet banking performed by both public and private banks are beyond the
expectation of the customers. Similarly the various services provided by both public and
private sector banks are more than adequate for customers. It is concluded finally that there is
significant difference between public and private sector banks in respect of both services
provided and services performed via e-banking / internet banking.

From the results regarding functional / psychological barriers and benefits, it is noted that
there are four underlying aspects (dimensions) of functional / psychological barriers (two
aspects related to barriers such as “Complications and Difficulties in using IB initially” and
“Risk of getting wrong information”) and benefits (two benefits namely, “Convenient & Easy
to Use” and “Good option next to traditional banking”) are identified using factor analysis. It
is also concluded that there is significant difference in the perceived status of functional /
psychological barriers / benefits dimensions by socioeconomic characteristics and the
perceived status of functional / psychological barriers/benefits is related to importance of
using ATM, internet banking, preferred type of banking, availing e-banking services, period
of using e-banking, number of times visiting banks in a month, number of internet transaction
in a week and number of banking transaction in a month.

With regard to the “intention to use e-banking / internet banking in the future”, all
respondents have expressed positive opinion that they have intention of using these services
in the future. It is identified that “time saving and less cost” tend to influence the bank
customers‟ “intention to continue using this Internet banking site in the future” whereas
“providing accurate, relevant and upto date information”, “flexibility and easy accessibility

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with convenience” and “assisting to share the experience with bank and other customers more
efficiently” tend to influence the bank customers to strongly recommend to others to use e-
banking / internet banking in the future”. It is further concluded that the bank customers may
also continue to use e-banking / internet banking in the future” as it is useful in getting
account details and balance statements as well as for transferring funds. Moreover, bank
customers tend to strongly recommend to others to use e-banking / internet banking as it is
useful for loan transaction, paying bills using available cash in the accounts, making order to
buy and sell shares and generating latest reports of banking transactions.

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BIBLIIOGRAPHY:

1) Abdul, Salim (1996): "Education System in Kerala: Social Intermediation, Financing and
Regional Policies", UNDP Report.
2) Acharya, Sarthi (1983) "The lnformal Sector in Developing Countries - A Macro View
Point", Journal of Contemporary Asia, Vol. 13 (4).
3) Aftale, K. and Rahtm, E (1989). "Barriers to the growth of Informal Sector Firms: A Case
Study". The Journal of Development Studies Vol. 2, No.4, pp: 490-507.
4) Agarwal, BL (1986)- "Employment in the Unorganised Sector: Opportunities for
Selfemployment", Manpower Journal, Vol. 22, No.2 July - September.
5) Agarwal, D.P. and Jalan. M.L (1994): "Marketing Problems of lnformal Sector in
Gorekpur C~ty -A study of Hawkers and Vendors", Research Project sponsored by ICSSR.
6) Agarwala, S (1987) "Nature and Pattern of Employment in the Unorganised Sector
Dist~nguishtng between Self-employment and Wage-Employment", Institute of Applied
Manpower Research Working Paper, New Delhi.
7) Ahluwalia, S.S (1995): "Employment promotion in the Urban lnformal Sector", Inaugural
Speech, National Seminar on Employment Promotion in the Urban lnformal Sector,
December 14-15.
8) Amin, A.T.M.N (1988): "Technology Adaptation in Bangkok's Informal Sector",
ILOMlEP Research Working Paper Series, WEP 2-22lWP 203 (Geneva ILO).
9) Amin, Nurul(1987): 'The Role of the lnformal Sector in Economic Development -Some
Evidence from Dhaka, Bangladesh" International Labour Review, September – October
10) Ammu Joseph (1995) "A Voice for the Unheard, The Hindu Magazine, Sunday, August
20.

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 APPENDIX

1. Name of the respondent?

2. Age distribution of the respondent?

 15 – 20
 20 – 30
 30 – 40
 40 – 50
 50 – 60

3. Gender of the respondent?

 Female
 Male

4. Marital status of the respondent?

 Married
 Unmarried

5. Qualification of the respondent?

 SSC
 HSC
 Graduate
 Post Graduate
 Professional

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6. Occupation of the respondent?

 Student
 Private Job
 Public Job
 Business
 Professionals

7. Monthly Income distribution of respondent?

 0-25000
 25000-50000
 50000-100000
 100000 & Above

8. Are you aware of Services Digitalization of Banking?

 Yes
 No

9. Are you using E-Banking?

 Yes
 No

10. While Opening an account, are you aware of E-banking services

provided
by the bank?
 Yes
 No

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11. Manual Banking is more convenient than Digital Banking?

 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

12. How you perceive Digital Banking System?

 Not Easy
 Complicated Technique
 Difficult Accessibility
 Poor Feedback

13. Why you not using Online Banking Services?

 Do not have Interest at Home

 Don't Trust Interest Services when it comes to managing my money
 I prefer to have personal human relation
 Find the process to Difficult

14. Tick which Bank you preferred?

 Bank of Maharashtra
 Bank of India
 State bank of India
 HDFC

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15. Why this Bank you selected?

 Service is Good
 They provide Security

16. Which is the main reason for you to use Digitalization?

 Better Information
 24 Hr. Services
 Limited Time available

17. Frequency of Transaction?

 2-3 times per week

 Daily
 Only per Month
 Only per Week

18. Are you satisfied with the Using of Digitalization?

 Yes
 No

19. If Application form is Available on the website then how a Customer

Submit that?
 Fax
 Mail
 Online
 Other

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20. Did the bank do a Cost analysis Specifically on Digital Banking?

 Yes
 No

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