STUDY ON CUSTOMER

PERCEPTION
TOWARDS INTERNET
BANKING SERVICES OF
HDFC BANK
SUBMITTED BY : BIBINA ABRAHAM
GUIDE : TITUS CHACKO
 INTRODUCTION
Internet banking is changing the banking industry and is having major effects on banking
relationships. Online banking, also known as internet banking, e-banking or virtual banking, is an 
electronic payment system that enables customers of a bank or other financial institution to conduct
a range of financial transactions through the financial institution's website. The online banking
system will typically connect to or be part of the core banking system operated by a bank and is in
contrast to branch banking which was the traditional way customers accessed banking services.
Fundamentally and in mechanism, online banking, internet banking and e-banking are the same
thing
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an
'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as
part of the RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in
August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC
Bank commenced operations as a Scheduled Commercial Bank in January 1995. HDFC Bank comprises
of a dynamic and enthusiastic team determined to accomplish the vision of becoming a World-class
Indian bank. HDFC bank‟ s business philosophy is based on our four core values - Customer Focus,
Operational Excellence, Product Leadership and People. They believe that the ultimate identity and
success of their bank will reside in the exceptional quality of people and their extraordinary efforts.
They are committed to hiring, developing, motivating and retaining the best people in the industry
SCOPE OF THE STUDY

The study has been successfull in bringing out the customers satisfacton level of
using Cyber net for performing banking transactions. The study was aimed at
bringing out the feedback from the customers of HDFC using internet banking in
Ernakulam.

OBJECTIVES

1. To study and analyze the services offered by bank to their customers using internet
transaction.
2. To give suggestions for the improvement of services
3. To study about the factors that affects the customer perception towards internet banking of HDFC
bank
4. To know about the current and future prospects of internet banking to the customers.
5. To find out the major problems faced by the customers while using internet banking services
 
SAMPLE DESIGN AND SIZE

SAMPLE DESIGN
In this research project Descriptive research design is used. Judgment and Convenience
sampling method was used to get the information about online banking. This method is
used because it helps in exploring gender, age, or occupation disparities in terms of online
banking in the population. For conducting this re search, a structured questionnaire is
prepared and sample of 150 customers is taken from HDFC bank.

SAMPLING SIZE
Though large samples give more reliable results than small samples but due to constraint
of time and money, the sample size was restricted to 150 respondents. The respondents
belong to different income group and profession.
DATA COLLECTION

Keeping in view the nature of requirements of the study to collect all the relevant information
regarding the extent of awareness of the customers using internet banking facilities offered by HDFC
bank, direct personal interview method with structured questionnaire was adopted for the collection
of primary data. Secondary data has been collected through the various internet sites by surfing on
Interne t and from the records available with the bank.

SOURCE OF DATA
Following are the methods of sources of data:

PRIMARY DATA:
Questionnaire was used to collect primary data from respondents. The questionnaire was structured
type and contained questions relating to different dimensions of e- banking preferences among service
class such as level of usage, factors influencing the usage of e-banking services, benefits accruing to
the users of e-banking services, problems encountered. An attempt was also made to elicit reasons for
its non-usage. The questions included in the questionnaire were open-ended, dichotomous and offering
multiple choices.

SECONDARY DATA:
• Articles on internet Banking taken from journals, magazines published from time to time.
• Through internet
LIMITATION OF THE STUDY

Limitations of this study as follows:-.

• The study is limited to areas of Ernakulum only.

• The sample size of only 150 was taken from the large population for the purpose of study, so
there can be difference between results of sample from total population

• People were reluctant to go in to details because of their busy schedules.

• Merely asking questions and recording answers may not always elicit the actual information
sought.
DATA ANALIYSIS

Chart 4.5 showing whether respondents were aware of the internet banking services while opening the bank account

Chart 4.6 showing the usage of internet banking

24

42

76
58
Chart 4.7 showing the respondents according to their
account held with their bank

17

33
Chart4.8 showing the respondents according to the
convenient mode of banking

17

30

37

20
16

10

20
Chart 4.10 showing the details of different types of accounts maintained in the bank
7
 

21
37

Chart 4.11 showing the distribution of respondents

according to the reasons of using internet bank facility

17 10

18
8

40
Chart 4.12 showing the necessity of internet banking in the present scenario
10

Chart 4.14 showing the internet banking services which is regularly

being used by the customers

8 21

90

65
FINDINGS  
1. From our study we find out that 114 male and 36 female are using internet banking
services of both the banks. The male are having more knowledge about the services and
the transactions provided by the banks.
2. Most of the respondents who lies under the age of 21-30 are using E-banking services is
near about 74 respondents are using these services. it shows that they are the major users
of E-banking because they are having more knowledge about the services of e-banking
3. Most of respondents are business man are using E-banking services as near about 48
respondents are using E-banking services. Because the benefits while using these services
are more benefited by the businessmen so they are availing these services more than the
other respondents.
4. Among the respondents 32 percent are having income of the range of 10000-25000
5. Among the respondents 76 percent are aware of the internet banking services
6. Among the respondents 89 percent uses internet banking services
7. 33 percent of the respondents were holding account with the bank for more than 5
years
8. 37 percent of the customers find the atm as the convenient mode of banking
9. 55 percent of respondents have never used this service provided by the bank.
10. 37 percent of the respondents has savings bank account in the bank whereas the others
has current account, recurring deposit account , loan account etc
11. 36.8 percent of respondents use internet banking service because of convenience
rather than any other reasons
12. 90 percent of the respondents supported the necessity of internet banking services in
the present scenario
13. More half of the respondents selected this bank because of the brand whereas the
remaining selected because people references , good services and of other reasons
14. Most of the people uses internet banking services regularly for online purchase
and payment then for transferring of fund online , checking of bank statements and
the remaining for other purposes.
15. Most of the respondents think that the major benefit from E-banking services is time
saving facility
16. 39 percent of the respondents have rated excellent,31 percent of the respondents have
rated Very good, 13 percent of the respondents have rated Good, 9 percent-of the
respondents have rated Average for internet banking services
17. Problems faced by the customers are due to time consumption, slow, steps involved
in it ,and due to illiteracy .
 
 
Suggestion

• Give proper training to customers for using internet banking

 Create a trust in mind of customers towards security of their accounts

 Give proper awareness about the internet banking service to their
customers.
 Give importance to customers in other than business sector for using
internet banking.
 Mobile banking which is also a part of internet bankig should give
important
 Educating customers who are unaware of internet banking to improve
the usage
Conclusion
This study attempted to identify key quality attributes of internet banking services by analyzing internet banking customers &
their comments on banking experience. The findings of this study show that despite of many advantages of online banking.
People still consider it as an alternative for analyzing their bank records. Although every bank today provides the facility of
online banking but most of people use it only once a month. This reason is that in case of internet banking interpersonal
interaction with customers is seldom possible. Identification & measurement of customer‘s expectations of the internet
banking services provide a frame of reference & their relate d quality dimension. The main factors which persuade people to
use online banking are comfort & convenience & the facility which attracts them most is quality & quantity of information.
Therefore the implementation of quality initiatives should begin with defining customer‘s need & preferences & their related
quality dimensions .There is still a lot need for the banking system to make reforms and train their customers for using internet
for their banking account. Going through the survey the main problem lies that still customer have a fear of hacking of
accounts and thus do not go on for internet banking. Banks are trying their level best by providing the best security options to
the customers but then to there is lot of factors which betrays a customer from opening an internet bank account.
Banks are providing free internet banking services also so that the customers can be attracted. By asking the bank employs
we came to know that maximum numbers of internet bank account holders are youth and business man. E-Banking is an
innovative tool that is fast becoming a necessity. It is a successful strategic we upon for banks to remain profitable in a volatile
and competitive marketplace of today. If proper training should be given to customer by the bank employs to open an account
will be beneficial secondly the website should be made friendlier from where the first time customers can directly make and
access their accounts. In future, the availability of technology to ensure safety and privacy of internet transactions and the
RBI guide lines on various aspects of internet banking will definitely help in rapid growth of internet banking in India.