A study on Internet banking to improve customer base With reference to HDFC Bank

Project Report Submitted in partial fulfillment of the requirements for Master of Business Administration (MBA)

By Vivek Saini 1273670

GIAN JYOTI INSTITUTE OF MANAGEMENT & TECHNOLOGY PHASE-I, MOHALI

July 2013

ACKNOWLEDGEMENT
At the very outset ,I fail to find adequate words, ,with limited vocabulary at my command ,to express my, emotions to Dear God, whose eternal blessings divine presence, and masterly guidance helps me to fulfil all my goals. I am thankful to the authority of HDFC BANK; Phase 2 MOHALI, for providing me an opportunity to with them I am especially thankful to MR SANDEEP DHIMAN (BRANCH MANAGER) and my college GUIDE DR. POOJA ARORA for providing me opportunity, knowledge and all the vital information on which this project report stands. The support provided to me during my project was overwhelming and the work environment was conducive to work. Sometimes it is not easy to express your emotions in words especially when you have to say thanks to your parents for their constant undemanding love, dedication, sacrifice, inspiring guidance affectionate encouragement and never- ending enthusiasm; with which this project would not have been completed successfully. I would like to thank many others who have been associated with work directly or indirectly.

CERTIFICATE OF ORIGINALITY
I VIVEK SAINI, Roll No.1273670 of batch 2013-2014, am a full time bonafide student of first year of Master of Business Administration (MBA) Programme of Gian Jyoti Institute of Management & Technology, Mohali. I hereby certify that I have undergone Summer Training at HDFC BANK,PHASE 2,MOHALI from 29 May 2013 to 12 July 2013 and the project report titled A Study on- Internet Banking to improve customer base with reference to HDFC Bank submitted in partial fulfilment of the requirements of MBA programme is an original work of mine under the guidance of the industry mentor MR.SANDEEP DHIMAN,BRANCH MANAGER OF HDFC BANK and the faculty mentor ,DR.POOJA ARORA, and is not based on or reproduced from any existing work of any other person.Further,the project report is not based on or reproduced from any earlier work undertaken at any other time or for any other purpose, and has not been submitted anywhere else at any time.

(Students Signature) Student Name: Vivek Saini Arora Date:

(Faculty Signature) Faculty Name: Dr. Pooja Date:

Table of Content
S. No 1. Table of Content Introduction 1.1 Banking 1.1.2 History of Banking 1.1.3 Banking in India 1.1.4 Company Profile 1.1.5 History of HDFC 1.1.6 Promoters 1.1.7 Business Focus 1.1.8 Capital structure 1.1.9 Times Bank Amalgamation 1.1.10 Distributor Network 1.1.11 Board of Directors 1.1.12 Technology 1.1.13 Businesses 1.1.13.1 Wholesale banking 1.1.13.2 Retail banking 1.1.13.3 Treasury 1.1.14. Ratings 1.1.14.1 Credit rating 1.1.14.2 Corporate governance Rating 1.1.15 Competitors 1.1.16 SWOT Analysis 1.1.16.1 Strengths 1.1.16.2 Weaknesses 1.1.16.3 Opportunities 1.1.16.4 Threats 1.1.17 Awards and Achievements 1.2 Internet Banking Introduction 1.2.1 What Is Internet Banking 1.2.2 Internet Banking in Indian Banks 1.2.3 HDFC Internet Banking 1.2.3.1 Features of HDFC bank 1.2.3.2 Use of HDFC Internet Banking 1.2.3.3 Special benefits for using HDFC Internet Banking 1.2.3.4 Popular services covered under Internet Banking 1.2.4 Benefits of Internet Banking 1.2.4.1 Benefits to Consumers 1.2.4.2 Benefits to banking industry 1.2.4.3 Benefits to general economy 1.2.5 Challenges of Internet Banking 1.2.6 Internet Banking Services at HDFC
Page No. 8 8 8 8-9 10 10 10 11 11 11 12 12-13 13 13 13-14 14 14 14-15 15 15 15 15-16 16 16 16 17 17 17-20 21-22 22 22-23 23 24 24 24 25 25 25 25 26 26 27 4

Bank 2.1 Literature Review 3.1 Need of the study 3.2 Scope 3.3 Objectives of the study 4.1 Research Design 4.2 Descriptive Research 4.3 Sampling Design 4.3.1 Sample size 4.3.2 Sample Unit 4.3.3 Sampling Technique 4.3.4 Sampling Frame 4.4 Data collection and analysis 4.4.1 Secondary data 4.4.2 Primary data 4.5 Data analysis 4.6 Limitation of study 5.1 Analysis and Interpretation 6.1 Findings of the study 7.1 Suggestions And Conclusion 8.1 Bibliography 9.1 Annexure

28-31 32 33 33 34 35 35 35 35 35 36 36 36 36 36 36-37 38-52 53-55 56-57 58-59 60-63

Executive Summary
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 liberalization 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. A study on Internet banking to improve customer base With reference to HDFC Bank is topic of my project report. Main objective of this projects are 1. To learn about various aspects of HDFC E-banking. 2. To know how E-banking will helpful to increase customer base. 3. To know about customer satisfaction level by using E-banking services. 4. To know about various factors affecting E- banking services. To achieve these objectives I take a sample of 60 peoples from Mohali. Sampling is done by convenience sampling technique. And from this survey From this survey, it is concluded that all the e-banking services such as ATM, internet banking, phone banking through phone, play an important role in building satisfaction amongst the customers and increasing their preferences towards the emerging e-channel banking services.

Chapter - 1
INTRODUCTION

INTRODUCTION
(AN INTRODUCTUIN TO BANKING)
1.1 WHAT IS BANKINGA bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets. A bank is the connection between customers that have capital deficits and customers with capital surpluses. According to banking regulation act 1949-Banking is accepting of deposits for the purpose of lending and investing from the people or public which are repayable on demand or otherwise and withdrawal by cheque draft and otherwise. 1.1.2 HISTORY OF BANKINGThe origins of banking can be traced to ancient times, starting with rudimentary money lending and bartering practices for agricultural and other commodities. But it gained great momentum only after industrial revolution which commenced in Europe in the 17th century, when Europeans started establishing colonies around the world and the need for credit for trade was felt like never before. Ever since bank started operating, their essential mode of operations remained much the same until late into 20th century. But the arrival of Internet in 1990s changed all that. A plethora of possibilities emerged for worldwide commerce, which naturally impact the functioning of banks as well. Even now, technology evolution shape the nature and extent of global economic activity and continuous to fundamentally alter the global banking landscape. 1.1.3 BANKING IN INDIAIn India, banking as an institution originated in the late 18th century and primarily catered to needs of the British. Post-independence, the nationalization of major private sector banks in 1969 an important milestone in Indian banking system made banking accessible to the unbanked population in India. The economic liberalization in early 1990s ushered in the era of privatization wherein new private banks the new generation tech-savvy banks were launched. A few foreign banks commenced their India operation as well. All these banks were quick to leverage emerging technology, were competitive in wooing them over by providing professional services. This helped infuse a sense of urgency in public sector banks and older private sector banks to mend their ways, which in turns completely revitalized banking operation in India.
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Indias banking sector is growing at a fast pace. It has become one of the most preferred banking destinations in the world. Indian markets provide growth opportunities, which are unlikely to be matched by the mature banking markets around the world. FICCI conducted a survey to analyze the potential offered by Indian Banking System and achievement of global competitiveness by Indian banks. Some of the major strengths of the Indian banking industry, which have helped mark its place on the global banking scene as highlighted by our survey respondents were Regulatory Systems (84.21%), Economic Growth Rate (63.15%), Technological Advancement (52.63%), Risk Assessment Systems (47%) and Credit Quality (42.1%) Some of the areas that need to be geared up for future growth, identified by the survey respondents are Diversification of markets beyond big cities (84.2%), HR Systems (63.15%), Size of banks (52.63%) High Transaction Costs (47.3%), Banking Infrastructure (42%) and Labour Inflexibilities (42%). To a question on achieving global competitiveness, Consolidation in the financial sector has emerged to be the most significant measure required to create world class banking system followed by Strict Corporate Governance Norms, Regional Expansion, Higher FDI limits and FTAs. To a question on achieving global competitiveness, Consolidation in the financial sector has emerged to be the most significant measure required to create world class banking system followed by Strict Corporate Governance Norms, Regional Expansion, Higher FDI limits and FTAs.

AN INTODUCTION TO HDFC BANK

(THE HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED)

1.1.4 COMPANY PROFILEThe 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 liberalization 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. 1.1.5 HISTORYHDFC Bank was incorporated in 1994 by Housing Development Finance Corporation Limited (HDFC), India's largest housing finance company. It was among the first companies to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. The Bank started operations as a scheduled commercial bank in January 1995 under the RBI's liberalization policies. Times Bank Limited (owned by Bennett, Coleman & Co./The Times Group) was merged with HDFC Bank Ltd., on February 26, 2000. This was the first merger of two private banks in India. Shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank. On May 23, 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than 1,000. The amalgamated bank emerged with a base of about Rs. 1, 22,000 crore and net advances of about Rs.89, 000 crore. The balance sheet size of the combined entity is more than Rs. 1, 63,000 crore.

1.1.6 PromotersHDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

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1.1.7 BUSINESS FOCUSHDFC Bank's mission is to be a World Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the banks risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Banks business philosophy is based on four core values: Operational Excellence, Customer Focus, Product Leadership and People.

1.1.8 CAPITAL STRUCTUREAs on 31st March, 2012 the authorized share capital of the Bank is Rs. 550 crore. The paid-up capital as on the said date is Rs. 469,33,76,540 (234,66,88,270 equity shares of Rs. 2/- each). The HDFC Group holds 23.15% of the Bank's equity and about 17.29 % of the equity is held by the ADS / GDR Depositories (in respect of the bank's American Depository Shares (ADS) and Global Depository Receipts (GDR) Issues). 30.68 % of the equity is held by Foreign Institutional Investors (FIIs) and the Bank has 4,47,924 shareholders. The shares are listed on the Bombay Stock Exchange Limited and The National Stock Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under ISIN No US40415F2002.

1.1.9 TIMES BANK AMALGAMATIONOn May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was formally approved by Reserve Bank of India to complete the statutory and regulatory approval process. As per the scheme of amalgamation, shareholders of CBoP received 1 share of HDFC Bank for every 29 shares of CBoP. The amalgamation added significant value to HDFC Bank in terms of increased branch network, geographic reach, and customer base, and a bigger pool of skilled manpower. In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private sector bank promoted by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., effective February 26, 2000. This was the first merger of two private banks in the New Generation Private Sector Banks. As per the scheme of amalgamation approved by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank.

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1.1.10 DISTRIBUTION NETWORKHDFC Bank is headquartered in Mumbai. As on March 31, 2012, the Bank has a network of 3,062 branches in 1,568 cities across India. All branches are linked on an online realtime basis. Customers in over 800 locations are also serviced through Telephone Banking. The Bank's expansion plans take into account the need to have a presence in all major industrial and commercial centers, where its corporate customers are located, as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing / settlement bank to various leading stock exchanges, the Bank has branches in centers where the NSE / BSE have a strong and active member base. The Bank also has a network of 10,743 ATMs across India. HDFC Bank's ATM network can be accessed by all domestic and international Visa / MasterCard, Visa Electron / Maestro, Plus / Cirrus and American Express Credit / Charge cardholders.

1.1.11 BOARD OF DIRECTORS OR MANAGEMENTMr. C.M. Vasudev has been appointed as the Chairman of the Bank with effect from 6th July 2010. Mr. Vasudev has been a Director of the Bank since October 2006. A retired IAS officer, Mr. Vasudev has had an illustrious career in the civil services and has held several key positions in India and overseas, including Finance Secretary, Government of India, Executive Director, World Bank and Government nominee on the Boards of many companies in the financial sector. The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia. The Bank's Board of Directors is composed of eminent individuals with a wealth of experience in public policy, administration, industry and commercial banking. Senior executives representing HDF are also on the Board. Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry, the bank believes that its people are a significant competitive strength.
Name C M Vasudev Harish Engineer Renu Karnad Partho Datta A N Roy Vijay Merchant Designation Chairman Executive Director Director Director Director Director Designation

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Name Aditya Puri Paresh Sukthankar Pandit Palande Bobby Parikh Keki Mistry Managing Director Executive Director Director Director Director

1.1.12 TECHNOLOGYHDFC Bank operates in a highly automated environment in terms of information technology and communication systems. All the bank's branches have online connectivity, which enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs). The Bank has made substantial efforts and investments in acquiring the best technology available internationally, to build the infrastructure for a world class bank. In terms of core banking software, the Corporate Banking business is supported by Flexcube, while the Retail Banking business by Finware, both from i-flex Solutions Ltd. The systems are open, scaleable and web-enabled. The Bank has prioritized its engagement in technology and the internet as one of its key goals and has already made significant progress in web-enabling its core businesses. In each of its businesses, the Bank has succeeded in leveraging its market position, expertise and technology to create a competitive advantage and build market share.

1.1.13 BUSINESSESHDFC Bank caters to a wide range of banking services covering commercial and investment banking on the wholesale side and transactional / branch banking on the retail side. The bank has three key business segments: 1.1.13.1 Wholesale Banking- The Bank's target market is primarily large, blue-chip manufacturing companies in the Indian corporate sector and to a lesser extent, small & mid-sized corporate and agri-based businesses. For these customers, the Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of structured solutions, which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. Based on its superior product delivery / service levels and strong customer orientation, the Bank has made significant inroads into the banking consortia of a number of leading Indian corporates including multinationals, companies from the domestic business houses and prime public sector companies. It is recognized as a

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leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks. 1.1.13.2 Retail banking- The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class service and delivered to customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, Internet Banking and Mobile Banking. The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions, information and advice on various investment avenues. The Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider of Depository Participant (DP) services for retail customers, providing customers the facility to hold their investments in electronic form. HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank launched its credit card business in late 2001. By March 2012, the bank had a total card base (debit and credit cards) of over 19.71 million. The Bank is also one of the leading players in the "merchant acquiring" business with over 180,000 Point-ofsale (POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank is well positioned as a leader in various net based B2C opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc. 1.1.13.3 Treasury- Within this business, the bank has three main product areas Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalisation of the financial markets in India, corporates need more sophisticated risk management information, advice and product structures. These and fine pricing on various treasury products are provided through the banks Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio.

1.1.14 RATINGS1.1.14.1 Credit Rating- The Bank has its deposit programs rated by two rating agencies - Credit Analysis & Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents instruments considered to be "of the best quality, carrying negligible investment risk." CARE has also rated the bank's Certificate of Deposit (CD) programme "PR 1+" which represents "superior capacity for repayment of short term
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promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "AAA (ind)" rating to the Bank's deposit programme, with the outlook on the rating as "stable". This rating indicates "highest credit quality" where "protection factors are very high". The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by CARE and Fitch Ratings India Private Limited and its Tier I perpetual Bonds and Upper Tier II Bonds rated by CARE and CRISIL Ltd. CARE has assigned the rating of "CARE AAA" for the subordinated Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA (ind)" with the outlook on the rating as "stable". CARE has also assigned "CARE AAA [Triple A]" for the Banks Perpetual bond and Upper Tier II bond issues. CRISIL has assigned the rating "AAA / Stable" for the Bank's Perpetual Debt programme and Upper Tier II Bond issue. In each of the cases referred to above, the ratings awarded were the highest assigned by the rating agency for those instruments? 1.1.14.2 Corporate Governance Rating- The bank was one of the first four companies, which subjected itself to a Corporate Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating Information Services of India Limited (CRISIL). The rating provides an independent assessment of an entity's current performance and an expectation on its "balanced value creation and corporate governance practices" in future. The bank was assigned a 'CRISIL GVC Level 1' rating in January 2007 which indicates that the bank's capability with respect to wealth creation for all its stakeholders while adopting sound corporate governance practices is the highest.

1.1.15 Competitors of HDFC BankName HDFC Bank ICICI Bank Axis Bank Kotak Mahindra IndusInd Bank Yes Bank ING Vysya Bank Federal Bank JK Bank Karur Vysya City Union Bank South Ind Bk StanChart IDR Karnataka Bank DCB Lakshmi Vilas Dhanlaxmi Bank Last Price 634.00 1,032.85 1,231.45 718.30 471.70 447.65 605.35 409.85 1,165.35 425.60 55.20 20.75 113.55 112.70 44.40 70.00 30.60 Market Cap.
(Rs. cr.)

150,964.84 119,166.88 57,690.54 55,065.53 24,676.13 16,067.66 9,388.34 7,011.15 5,649.36 4,561.63 2,828.67 2,777.47 2,725.20 2,122.81 1,110.51 682.78 306.49

Net Interest Income 35,064.87 40,075.60 27,182.57 8,042.49 6,983.23 8,294.00 4,861.58 6,167.57 6,136.79 4,242.43 2,188.75 4,434.29 3,764.29 916.10 1,760.55 1,308.00

Net Profit 6,726.28 8,325.47 5,179.43 1,360.72 1,061.18 1,300.68 612.96 838.17 1,055.10 550.32 322.02 502.27 348.08 102.06 91.57 2.62

Total Assets 400,331.90 536,794.69 340,560.66 83,693.68 73,306.52 99,104.12 54,836.45 60,626.78 71,743.32 46,733.35 18,350.65 49,795.04 1,945,725.80 41,526.38 11,278.84 16,243.58 13,819.49

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Goldman BEES

2,526.90

259.27

1.1.16 SWOT analysis

1.1.16.1 Strengths HDFC bank is the second largest private banking sector in India having 2,201 branches and 7,110 ATMs HDFC bank is located in 1,174 cities in India and has more than 800 locations to serve customers through Telephone banking The banks ATM card is compatible with all domestic and international Visa/Master card, Visa Electron/ Maestro, Plus/cirus and American Express. This is one reason for HDFC cards to be the most preferred card for shopping and online transactions HDFC bank has the high degree of customer satisfaction when compared to other private banks The attrition rate in HDFC is low and it is one of the best places to work in private banking sector HDFC has lots of awards and recognition, it has received Best Bank award from various financial rating institutions like Dun and Bradstreet, Financial express, Euro money awards for excellence, Finance Asia country awards etc HDFC has good financial advisors in terms of guiding customers towards right investments 1.1.16.2 Weakness HDFC bank doesnt have strong presence in Rural areas, where as ICICI bank its direct competitor is expanding in rural market HDFC cannot enjoy first mover advantage in rural areas. Rural people are hard core loyals in terms of banking services. HDFC lacks in aggressive marketing strategies like ICICI The bank focuses mostly on high end clients Some of the banks product categories lack in performance and doesnt have reach in the market The share prices of HDFC are often fluctuating causing uncertainty for the investors 1.1.16.3 Opportunities

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HDFC bank has better asset quality parameters over government banks, hence the profit growth is likely to increase The companies in large and SME are growing at very fast pace. HDFC has good reputation in terms of maintaining corporate salary accounts HDFC bank has improved its bad debts portfolio and the recovery of bad debts are high when compared to government banks HDFC has very good opportunities in abroad Greater scope for acquisitions and strategic alliances due to strong financial position 1.1.16.4 Threats HDFCs nonperforming assets (NPA) increased from 0.18 % to 0.20%. Though it is a slight variation its not a good sign for the financial health of the bank The non banking financial companies and new age banks are increasing in India The HDFC is not able to expand its market share as ICICI imposes major threat The government banks are trying to modernize to compete with private banks RBI has opened up to 74% for foreign banks to invest in Indian market.

1.1.17 Awards and AchievementsHDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian Bank". They realized that only a single-minded focus on product quality and service excellence would help us get there. Today, we are proud to say that we are well on our way towards that goal. It is extremely gratifying that efforts towards providing customer convenience have been appreciated both nationally and internationally. 1.1.17.1 Awards in 2013Dun & Bradstreet Corporate Awards 2012 Bharathi Cement Corporate Awards 2012 NDTV Profit Business Leadership Awards 2012 Winner in the banking category

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NASSCOM CNBCTV18 IT Innovation Award The National Quality Excellence Awards FE Best Bank Awards Skoch Financial Inclusion Awards 2013

Best IT Driven Innovation in Banking (COMMERCIAL)

Best Customer Service Result

HDFC Bank wins in 3 categories at FE Best Bank Awards

Organisation of the Year

1.1.17.2 Awards in 2012DSCI Information Technology Award 2012 - Security in Bank (2nd time in a row) - Security Leader of the Year (Banking)

Business world - Most tech-friendly Bank Awards for - Deal of the year (Rupee Bonds) Banking Excellence 2012 HT-Mars Customer - Winner: Bank and Credit Card customer satisfaction Survey satisfaction survey CSO Forum Information Technology Award 2012 Economic Times CNBC TV18's India Best Banks - Best Organisation for Information Security Practice (2nd time in a row)

ET Awards for Corporate Excellence - Company of the Year 2012 Best Private sector Bank

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and Financial Institutions Awards 2012 Mint-Aon Hewitt study on India's Best Managed Boards 2012 Forbes Asia IBA Banking Technology Awards 2011 Our Bank among India's six best managed Boards 2012

Fab 50 Companies - Winning for the 6th year - Best Online Bank - Best use of Business Intelligence - Best Customer Relationship Initiative - Best Risk Management & Security Initiative - Best use of Mobility Technology in Banking - Overall Best Bank - Best Private Sector Bank - Asset Quality - Private Sector - Retail Banking -Private Sector Best Bank in 'IT for Operational Effectiveness' category

Dun & Bradstreet Banking Awards 2012

IDRBT Banking Technology Excellence Awards 2011-12 Asia Money 2012

Best Domestic Bank in India

India's Top 500 Best Bank in India Companies -Dun & Bradstreet Corporate Awards Finance Asia - Best Managed Company - Best CEO - Mr. Aditya Puri

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UTI Mutual Fund CNBC TV 18 Financial Advisor Awards 2011

- Best Performing Bank - Private

Asian Banker - Best Retail Bank in India International - Best Bancassurance Excellence in Retail - Best Risk Management Financial Services Awards 2012 5th Loyalty Summit Customer and Brand Loyalty award Skoch foundation 2012 ICAI Awards 2011 SHG/JLG linkage programme

Excellence in Financial Reporting

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AN INTRODUCTION TO THE INTERNER BANKING SERVICES 1.2 INTERNET BANKING - INTRODUCTION Internet banking is creating dramatic changes for the banking industry. Internet banking is defined as an internet portal, through which customers can use different kinds of banking services ranging from bill payment to making investments. Banking can be done literally from anywhere if one has a computer and net connectivity. Internet banking helps consumers in conducting fast and convenient financial transaction activities. In many countries, internet banking has gained wide acceptance and India is no onlooker to this phenomena. Banks in India started embracing technology in a massive way in the 90s, led in particular by the new private banks and multinational banks. The growing competition and growing expectations led to increased awareness amongst banks on the role and importance of technology in banking, forcing banks to go in for the latest technologies so as to meet the threat of competition and retain their customer base. There are a lot of benefits through adoption of internet banking for the banks and their customers. On the whole, Internet banking increases operational efficiencies and reduces costs, besides giving a platform for offering value added services to the customer, thereby fulfilling all the essential prerequisites for a flourishing banking industry. A study by IAMAI (2006) reveals that costs of banking service through the internet amount to a fraction of the costs through conventional methods. According to the survey, assuming teller cost at Re 1 per transaction, ATM transaction costs is Re 0.45, phone banking is Re 0.35, debit cards costs Re 0.20 and Internet banking costs only Re 0.10 per transaction. However, banks cannot expect instant returns, unless the Internet population itself does not reach a critical mass. In todays environment besides their physical branches, banks need to enhance non-branch delivery networks as a part of their growth strategy. A new construct Perceived reliability is proposed to enhance the understanding of an individuals acceptance behavior of internet banking with respect to consumers perceived security, privacy issues and the perceived risk of consumers. Consumer awareness of internet banking is proposed as the precursor of forming positive attitudes with respect to usefulness, ease of use and reliability, and ultimately adopting internet banking. Using PLS, the model is successfully proved and it is found that internet banking is influenced by its perceived reliability, perceived ease of use and perceived usefulness. The advent of the internet and the popularity of personal computers presented both an opportunity and a challenge for the banking industry. For years, financial institutions have used powerful computer networks to automate millions of daily transactions; today, often the only paper record is the customers receipt at the point of sale. Now that its
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customers are connected to the Internet via personal computers, bank envisions similar economic advantages by adopting those same internal electronic processes to home use. Banks view online banking as a powerful value added tool to attract and retain new customers while helping to eliminate costly paper handling and teller interactions in an increasingly competitive banking environment.

1.2.1 WHAT IS INTERNET BANKING?

Internet Banking refers to the banking services provided by the banks over the internet. Some of these services include paying of bills, funds transfer, viewing account statement, etc. Banks also deliver their latest products and services over the internet. Internet banking is performed through a computer system or similar devices that can connect to the banking site via the internet. Nowadays, you can also use internet banking on your mobile phones using a Wi-Fi or 3G connection. With the ease of availability of cyber cafes in the cities, internet banking has become quite popular. Banking is now no more limited in going and visiting the bank in person for various purposes like depositing and withdrawing money, requesting for account statement, stop a payment, etc. You can do all these tasks and many more using the internet banking services offered by the banks. You can also keep a track of your account transactions and balance all the time. Now getting passbooks updated to know the total account balance is a matter of past.

1.2.2 INTERNET BANKING IN INDIAN BANKSA banker or bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money. It is receiving, keeping, and lending money. When various banking products are made available to customers through an electronic distribution channel, it is collectively referred to as e-banking. One has to approach the branch in person, to withdraw cash or deposit a cheque or request a statement of accounts. In true Internet banking, any inquiry or transaction is processed online without any reference to the branch (anywhere banking) at any time. Providing Internet banking is increasingly becoming a "need to have" than a "nice to have" service. The Internet Banking, thus, now is more of a norm rather than an exception in many developed countries due to the fact that it is the cheapest way of providing banking services. Moreover continuing technological innovation and competition among existing banking organizations and new entrants have allowed for a much wider array of banking products and services to become accessible through ebanking.
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Banks in INDIA are providing online banking to catch up with a new breed of tech-savvy generation, demanding modern technology based services. This is fast changing the way you bank. Educated middle class youth with access to the internet is in the forefront of this technology driven revolution. With most of the major banks providing Internet Banking or online banking, it is possible to do most of your banking from the comfort of your home or office. All you need is a computer with internet access. More than 22% of the internet users in India use online banking. If you are new to online banking, it is worthwhile to know some facts about it. Internet banking provides with 24 hour banking facility, which helps us to access our account anytime. We can now skip the long queues and the endless wait to get things done in a bank. We can access our account from anywhere by just logging into the banks site and entering your id and password. You can check your account information and perform transactions from anywhere via a Smartphone, laptop, or any other Internetaccessible device. We can apply online for a majority of the services such as loans, credit cards, savings accounts, and mortgages. Also, insurance products can be bought using internet banking. Some banks provide online portfolio management services. Stocks, bonds, and other investments can be managed with online banking at your convenience, independent of a financial intermediary like a stockbroker. For example, through HDFC Securities customers can trade in the stock market or keep track of the portfolio. Booking Railway tickets through online banking has become a widely used service by customers. This is because, in India a huge population use trains to travel across the country. Another area where online banking is making headway is in the Online Shopping industry. The market size of online shopping industry in India is estimated at Rs. 2000 crores and is expected to reach Rs. 7000 crore by 2015. One of the important reasons for this huge growth will be the increase in internet banking. Online banking also helps us to pay our utility bills like electricity, telephone, and satellite TV. This is turning out to be a great service for those who are short on time. Now we can also make insurance payments over the net. Whats more, we can even recharge our mobile through online banking. The present study makes a contribution to assess perception, satisfaction, and awareness among customer towards e-banking services provided by banks. It also analyze factors such as age, nature of employment, convenience, usage, length of relationship with bank, transaction time, security concern that affect customer preferences with regards to ebanking. This study also attempt to compare traditional banking and e-banking services.

1.2.3 HDFC Internet Banking Unique Internet Banking ExperienceInternet Banking or Net Banking has changed the way we used to access banks. As now everything has gone online so are banking accounts. Unlike past, now almost all the bank related functions can be done through a combination of ATM and Online Internet
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based Internet Banking platform. HDFC Bank like any other bank also has a Internet Banking system which is popularly known as HDFC NetBanking. The internet banking facility provided by HDFC Bank NetBanking is unique in a way It is primary because of the ease of use and user experience which one feels while using the Internet Banking website of HDFC Bank. Also, there are no additional charges for Internet Banking i.e. its free of cost (HDFC Bank saves a lot of money as they dont have to hire people to serve you). So, using internet banking is efficient, convenient and inexpensive. 1.2.3.1 Features of HDFC Internet Banking HDFC NetBanking facility provides almost all features provided by any international level bank.

You can query the HDFC internet banking system to get following information Check your Balance See your Statement Inquire about cheque status Ask for a Statement Ask for a Cheque Book Inquire about your Fixed Deposit Inquire about your TDS details See your Demat Account Update your profile View HDFC bank Credit card bills View your Mutual funds portfolio 1.2.3.2 Use of HDFC Internet Banking to do following type of transactions

Stop a Cheque Pay your Bills Ask for a Demand Draft Transfer funds between your accounts Transfer funds to a third party Request for a new Fixed Deposit Shop Online Pay HDFC Bank Credit Card Dues Buy and sell Mutual Funds 1.2.3.3 Special benefits for using HDFC NetBanking

There are various benefits of using HDFC NetBanking Free Stop Cheque Statement Request Bill Pay facility
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Preferred rates for Demand Draft 1.2.3.4 Popular services covered under E-BankingThe popular services covered under E-banking include:1. Automated teller machines 2. Credit Cards, 3. Debit Cards, 4. Smart Cards, 5. Electronic Funds Transfer system 6. Mobile banking 7. Internet banking 8. Telephone banking. 1.2.4 BENEFITS OF INTERNET BANKINGIn recent time E-banking has spread rapidly all over the globe. All Banks are making greater use of E-banking facilities to provide better service and to excel in competition. The spread of E-banking has also greatly benefited the ordinary customer in general and corporate world in particular. The following points summarize benefits of Internet Banking. 1.2.4.1 Benefits to Consumers: General consumers have been significantly affected in a positive manner by E-banking. Many of the ordinary tasks have now been fully automated resulting in greater ease and comfort. 1. Customers account is extremely accesses able with an online account. 2. Customer can withdraw can at any time through ATMs that are now widely available throughout the country. 3. Besides withdrawing cash customers can also have mini banks statements, balance inquiry at these ATMs 4. Through Internet banking customer can operate his account while sitting in his office or home. There is no need to go to the bank in person for such matter. 5. Internet Banking has also greatly helped in payment of utility bill. Now there is no need to stand in long queues outside banks for his purpose. 6. All services that are usually available from the local bank can be found on a single website. 7. The Growth of credit card usage also owes greatly to E-banking. Now a customer can shop worldwide without any need of carrying paper money with him. 8. Banks are available 24 hours a day, seven days a week and they are only a mouse click away.

1.2.4.2 Benefits to Banking Industry: Banking industry has also received numerous benefits due to growth of E-Banking infrastructure. There are highlighted below:

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1. The growth of E-banking has greatly helped the banks in controlling their overheads and operating cost 2. Many repetitive and tedious tasks have now been fully automated resulting in greater efficiency, better time usage and enhanced control. 3. The rise of E-banking has made banks more competitive. It has also led to expansion of the banking industry, opening of new avenues for banking operations. 4. Electronic banking has greatly helped the banking industry to reduce paper work, thus helping them to move the paper less environment. 5. Electronic banking has also helped bank in proper documentation of their records and transactions. 6. The reach and delivery capabilities of computer networks, such as the Internet, are far better than any branch network. 1.2.4.2 Benefits to General Economy: Electronic Banking as already stated has greatly serviced both the general public and the banking industry. This has resulted in creation of a better enabling environment that supports growth, productivity and prosperity. Besides many tangible benefit in form of reduction if cost, reduced delivery time, increased efficiency, reduced wastage, e-banking electronically controlled and thoroughly monitored environment discourage many illegal and illegitimate practices associated with banking industry like money laundering, frauds and embezzlements. Further E-banking has helped banks in better monitoring of their customer base. This it is a useful tool in the hand of the bank to device suitable commercial packages that are in conformity with customer needs. As Internet Banking provide opportunity to banking sector to enlarge their customer base, a consequence to increase the of volume of credit creation which results in better economic condition, Besides all this E-banking has also helped in documentation of the economic activity of the masses. 1.2.5 CHALLENGES OF INTERNET BANKINGIn the Internet banking system, information is considered as an asset and so worthy of protection. However, the present system of authentication does not address the security aspect in full. This calls for an urgent need to acclimatize the whole system. According to Online Banking Association, member institutions rated security as the most important issue of online banking. There is a dual requirement to protect customers' privacy and protection against fraud. Another major issue is that of Data Protection and the need for a legal and regulatory framework. Information security in e-banking presents two main areas of risk: preventing unauthorized transactions and maintaining integrity of customers transactions. Data protection falls in the latter. Data protection laws primarily aim to safeguard the interest of the individual whose data is handled and processed by others. Interests are usually expressed in terms of privacy, autonomy and/or integrity.

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The Internet and its underlying technologies will change and transform not just banking, but also all aspects of finance and commerce. It represents much more than a new distribution opportunity. It will enable nimble players to leverage their brick and mortar presence to improve customer satisfaction and gain share. It will force lethargic players who are struck with legacy cost basis, out of business since they are unable to bring to play in the new context.

1.2.6 INTERNET BANKING SERVICES AT HDFC BANKInternet Banking is HDFC Banks service. It provides up-to-the- second account information. Internet Banking is lets the customer manage his/her account from the comfort of his/her mouse anytime, anywhere. Internet Banking service provide access to account information, products and other services (including transaction of nonfinancial and financial in nature) as advised by the bank from time to time to the customers through the website of the Bank. Internet Banking service is also including the service for Demat account, credit cards and loans on the website of the Bank. The HDFC Bank web site (www.hdfcbank.com) also feature version a demo facility one interactive and other guided making it possible for even Internet illiterates to get comfortable with its services. On the downside, however, resignation for the service involves downloading of a form needs to be posted/ delivered to any its branches not exactly web savvy as we would call it. Also the form itself requires Adobe Acrobat Reader to be installed and file size will exceed 5.5 MB, which translates roughly into an hour or more of on-time. Its 3question FAQ page also assumes a high level of computer knowledge from users... not consistent with the rest of the website. Internet Banking service provides a host of features at the figure tips: View account balance and statements Transfer funds between account Create fixed deposits online Request a Demand draft Pay bills Order a Cheque Book Request stop payment on Cheque And lots more.

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Chapter 2
Review of Literature

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2.1 Literature Review:

The aim of the literature review is to show what has been done in the field and how the current study relates to earlier research. The review will give an overview of the findings of various previous studies and identify general patterns of the findings and the conclusions that can be made. The need for the literature review is to serve as a foundation for rational reasoning on which the current topic can be built upon. (Odd Fredriksson, 1993): A considerable amount of research has been made in this area in the recent years and the outcome is the theory of satisfaction gap. It identifies the prevalent gap in the service quality and stresses on its eradication through bringing about improvement in the quality of services. Perceived Service Quality has been identified key factor in banking for customer satisfaction. Joseph et al. (1999):- He investigated the influence of internet on the delivery of banking services. The following underlying dimensions of e-banking service quality such as convenience and accuracy, feedback and complaint management, efficiency, queue management, accessibility and customization were out. The Indian Internet Banking Journey: In 2001, a Reserve Bank of India survey revealed that of 46 major banks operating in India, around 50% were either offering Internet banking services at various levels or planned to in the near future. Meuter et al. (2000):- They have identified critical incidents of customer satisfaction and dissatisfaction with technology-based service encounters. This study aims to determine the levels of risk perception differences among those using Internet Banking and those not using it. It was found in an online survey that Identity theft worries have increased in response to recent high-profile security breaches. Most people said they were more concerned about online identity theft now than they were a few years ago, said Richard Kosinski, who works with Yahoo's advertisers in the financial services sector. Customer Dissatisfaction is clearly the fundamental reason for customer decay (Hill and Alexander, 2002), resistance to change (Laukkanen, P., Laukkanen, T. & Sinkkonen, S., 2008).The difference between traditional and electronic retail services is the development and replacement of human-to-machine interaction as against human tohuman interaction and therefore, new or modified approaches to conceptualizing and measuring satisfaction may be needed for ecommerce and e-business settings. (Pikkarainen, Karjaluoto, and Pahnila 2004) define Internet banking as an Internet portal, through which customers can use different kinds of banking services ranging from bill payment to making investments. With the exception of cash withdrawals, Internet banking gives customers access to almost any type of banking transactions at the click of a mouse. The use of the Internet as a new alternative channel for the distribution of financial services has become a competitive necessity instead of just a way to achieve

29

competitive advantage with the advent of globalization and fierce competition (Flavian, Torres, & Guinaliu, 2004; Gan, Clemes, Limsombunchai, & Weng, 2006). Shilpan D. Vyas 2006: This study found the future of banking industry depends on efforts of all concerned parties such as service providers, service facilitators, regulatory system and customers. The bank, regulatory authorities and other organizations must try their best to make banking sector as secure as possible. As regulators we need to ensure that our approaches are adequate to deal with the risks without getting in the way of the innovations and benefits that E-banking brings to firms and consumers. In USA the demand of e-banking service is more whereas it is low in India because in USA every person has e-banking services but in India only 24% people use e-banking services. So in USA banks should be introduced new technology and innovative product to attract the population. But India is progressing with a greater speed so much so that it will compare with USA in near future in e-banking business. MALHOTRA Pooja and SINGH Balwinder 2007: The analysis indicates several significant differences in the profile of banks that offer Internet banking and banks that do not. Broadly speaking, on an average, Internet banks are larger, more profitable and are more operationally efficient than non-Internet banks. Internet banks have higher asset quality and are better managed to lower the expenses for building and equipment. In contrast to developed countries Internet banks in India rely substantially on deposits, the traditional source of financing. Last, but not the least, attempt was made to see if there is any association between adoption of Internet banking and the banks performance and risk. The evidence reveals no significant association between adoption of Internet banking by banks and their performance. However, Internet banking has a negative and significant impact on profitability of private sector banks particularly new private sector banks. Thus, adoption of Internet banking was a reason behind the lower profitability of these banks, as Internet banks in new private sector were operating with higher cost of operations, including fixed cost and labour cost, thus affecting negatively the profitability of these banks. On the other hand, internet banking has a negative and significant impact on risk, which shows that, the adoption of Internet banking has not increased the risk profile of banks. (Rueangthanakiet Pairot, 2008) defined Customers satisfaction as the company's ability to fulfill the business, emotional, and psychological needs of its customers. However, customers have different levels of satisfaction as they have different attitudes and experiences as perceived from the company. Customers satisfaction is affected by the importance placed by the customers on each of the attitudes of the product/ service. Customer satisfaction measurement allows an organization to understand the key drivers that create satisfaction or dissatisfaction; and what is really driving their satisfaction during a service experience. When customers pay money to buy a service he has some minimum expectations from the transaction. These expectations from the purchase have to be met substantially, if not entirely for the customer to become a loyal customer of the service (Akbar and Parvez,
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2009). These expectations are fulfilled of a promises- quality, fair price, availability, after sale services, complaints handling process, information, and variety etc. the customers are demanding high quality of services and low prices or charges. Better quality for the same cost is the motto of the customers. Various research studies on consumer attitude and adoption of internet banking have shown that there are several factors influencing the consumers attitude towards online banking such as persons demography, motivation and behavior towards different banking technologies and individual acceptance of new technology. It has been found that consumers attitudes toward online banking are influenced by the prior experience of computer and new technology (Laforet and Li 2005). As far as online banking adoption is concerned, security, trust and privacy concerns have been outlined as extremely important ones from the consumers standpoint (Benamati and Serva 2007). Online banking requires perhaps the most consumer involvement, as it requires the consumer to maintain and regularly interact with additional technology (a computer and an Internet connection) (Jane et al, 2004). Consumers who use e-banking use it on an ongoing basis and need to acquire a certain comfort level with the technology to keep using it (Servon, and Kaestner 2008). The problem here is: are customers really enjoying these services? Related to this problem, empirical evidence implies that customers patronage for and reaction to a particular product depend on their level of understanding of what the product can do and what they stand to benefit there from (Balachandher, 2001). In this connection, it is relevant to find out the perception of e-banking by customers. (Rahmath Safeena, Hema Date and Abdullah Kammani 2010)- This study meets the desired objective; but it suffers from one setback. The relatively small size of the sample limits generalization of the outcome of the study. This study was conducted to explore the factors influencing intentions to adopt IB services. As such, there is still room for further investigation into the adoption of IB services. The replication of this study on a wider scale with more IB customers and with different national cultures is essential for the further generalization of the findings. By using a longitudinal study in the future, we could investigate our research model in different time periods and make comparisons, thus providing more insight into the phenomenon of online banking adoption.

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Chapter 3
NEED, SCOPE AND OBJECTIVES OF THE STUDY

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NEED, SCOPE AND OBJECTIVES OF THE STUDY 3.1 NEED OF THE STUDYAfter conducting a review of researches done by various professionals a gap have been identified. The researchers had studied the aspects of Internet Banking its introduction, its development, adoption by the customers, consumers perception about this service, its success and security related issues. But, a very few researchers had studied the Internet Banking Services with respect to the HDFC Bank. This gap had been identified and it had led to the present research being undertaken. 3.2 SCOPE/PURPOSE OF SELECTING BANKING SECTOR FOR SUMMER INTERNSHIP PROGRAMME (SIT)Banking sector is playing an important role in Indian economy. The large part of GDP of INDIA is because of the contribution of banking sector. The service sector in INDIA is growing very fast. Banking sector is also weaving its arms. But most of the people have no exact idea about the way of working of banks. That is why I choose the banking sector for accomplishing my summer internship programme. Fortunately, I got permission to perform my summer training programme in bank like HDFC BANK (THE HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED). 3.3 OBJECTIVES OF THE STUDY1. To learn about various aspects of HDFC E-banking. 2. To know how E-banking will helpful to increase customer base. 3. To know about customer satisfaction level by using E-banking services. 4. To know about various factors affecting E- banking services.

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Chapter 4
RESEARCH METHODOLOGY

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CHAPTER-4(RESEARCH METHODOLOGY) Research is a common parlance which refers to search for knowledge. It is a procedure of logical and systematic application of the fundamentals of science to the general and overall questions of a study and scientific technique, which provide precise tools, specific procedures, and technical rather philosophical meaning for getting and ordering the data prior to their logical analysis and manipulating different type of research designs is available depending upon the nature of research project, availability of manpower and circumstances. 4.1RESEARCH DESIGNA Research Design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. Infact, the research design is the conceptual structure within which the research is conducted. This research was descriptive in nature. 4.2DESCRIPTIVE RESEARCHThe research undertaken was a descriptive research as it was concerned with specific predictions, with narration of facts and characteristics concerning Internet Banking Services provided by HDFC bank. 4.3 SAMPLING DESIGNThe following factors have been decided within the scope of sample design: 4.3.1 Sample Size- A Sample of minimum respondents was selected from the HDFC Bank in Mohali Region .An effort was made to select respondents evenly. The survey was carried out on 60 respondents. 4.3.2 Sample Unit- In this project sampling unit consisted of the various individuals who had their bank account with HDFC Bank.

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4.3.3 Sampling Technique- For the purpose of research Convenient Sampling Technique was used. 4.3.4 Sampling Frame- It consisted of various sources from where information about the respondent is extracted. Mainly personal links and employees of HDFC bank, Mohali are used for getting information about the respondents. 4.4 DATA COLLECTION AND ANALYSIS- There were 2 types of data sources used in this research. These were:4.4.1 SECONDARY DATA-It is the data collected for already being used or published information like Journals, Magazines, Research Papers, Internet, Books etc. In this research project secondary source used were various journals, research papers, Books etc. 4.4.2 PRIMARY DATA-It is the data collected for the first time from the source and never have been used earlier. The data can be collected through interviews, observations and questionnaires. In this project, an appropriate questionnaire was designed which was filled by the customers of HDFC bank to know their opinions regarding the Internet Banking Services provided by HDFC Bank. 4.5 DATA ANALYSIS4.5.1 TOOLS OF PRESENTATION-It means what all tools are used to present the data in a meaningful way so that it becomes easily understandable 2. TOOLS OF ANALYSIS- In this research the tools of analysis used was SPSS software. 4.6 LIMITATIONS OF THE STUDY-The following were the limitations of the study1. SHORTAGE OF TIME- The time period of study was very limited. A period of 4-6 weeks is not enough for the proper study of the project. 2. BIASNESS IN THE RESPONSES-The answers provided by the respondents suffer from biasness.
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3. COST FACTOR- It was not possible to conduct extensive research due to paucity of funds. 4. INADEQUATE DATA-The data provided was not up to the mark due to which we faced problems in our research.

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Chapter 5
DATA INTERPRETATION AND ANALYSIS

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5.1 Analysis and InterpretationThis survey is designed to understand Internet users perspectives on Internet banking, their experiences with and their expectations from Internet banking services. Table 1- Occupation of Respondents
Occupation Frequency Percent Valid Percent Cumulative Percent

Business Employee Valid Other Total

20 27 13 60

33.3 45.0 21.7 100.0

33.3 45.0 21.7 100.0

33.3 78.3 100.0

50 45 40 35 30 25 20 15 10 5 0 Business Empolyee Other Frequency Percent

The occupation of the respondents affects their perception. The table 1 reveals that out of 60 customers 33% people from business background. They are doing different types of business. 45% respondents belong to employee category. Remaining 21.7% respondents are from different backgrounds like labor, unemployed, small investors etc.

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Table 2- Gender of Respondents:

Gender Frequency Male Valid Female Total 38 22 60 Percent 63.3 36.7 100.0 Valid Percent 63.3 36.7 100.0 Cumulative Percent 63.3 100.0

70 60 50 40 Frequency 30 20 10 0 Male Female Percent

Table 2 represents the Gender of the respondents. 63.3% of the respondents are male. 36.7% from the respondents are female. Gender deference also affects the perception of service.

Table 3- Age Group of respondentAge Group Frequency 10-20 yrs 21-30 yrs Valid 31-40 yrs Above 40 Total 2 28 18 12 60 Percent 3.3 46.7 30.0 20.0 100.0 Valid Percent 3.3 46.7 30.0 20.0 100.0 Cumulative Percent 3.3 50.0 80.0 100.0

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50 45 40 35 30 25 20 15 10 5 0 10-20 yrs 21-30 yrs 31-40 yrs Above 40

The result in table 3 reveals that out of 60 customers. 12% of the respondents belong to the age group of less than 20 years. 38% of the respondents belong to the age group of below 30 years. 30% of respondents lie between the age group of 31 40 years. And 16% categories of above belong to the age group of above 40 years.

Table 4- Monthly Income of RespondentMonthly Income Frequency Less than 15000 Rs 15000 Rs-20000 Rs 20000 Rs- 25000 Rs Valid 25000 Rs-30000 Rs 30000 Rs-35000 Rs Total 13 5 60 21.7 8.3 100.0 21.7 8.3 100.0 91.7 100.0 14 13 15 Percent 23.3 21.7 25.0 Valid Percent 23.3 21.7 25.0 Cumulative Percent 23.3 45.0 70.0

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30 25 20 15 10 5 0 Less than 15000 Rs 15000 Rs20000 Rs 20000 Rs25000 Rs 25000 Rs30000 Rs 30000 Rs35000 Rs Frequency Percent

Table 4 represents the monthly income of the respondents. 14% of the respondents having the income level of less than 15000 thousand per month. 21% the people belong to the category of Rs.15, 000 Rs. 20000. 25% of the people belong to Rs.20000 25000 Rs. 13% of the respondents income lie between Rs. 25000 to Rs. 30000. Remaining 5% people incomes from the above group belong to above 30000. Table 5- Relationship with BankBank Account Frequency Saving account Salary account Valid Current account Total 1 60 1.7 100.0 1.7 100.0 100.0 48 11 Percent 80.0 18.3 Valid Percent 80.0 18.3 Cumulative Percent 80.0 98.3

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90 80 70 60 50 40 30 20 10 0 Saving account Salary account Current account Frequency Percent

Table 5 represents the relationship of the customer with the bank.80% of the respondents maintains saving Account. 18.3% of the above maintains salary account. 1.7% of them holds current account. Table 6- Frequency of Using Telephone banking in a monthFrequency of using of telephone banking in a month Frequency Less than 5 5-10 times Valid Never use Total 42 60 70.0 100.0 70.0 100.0 100.0 15 3 Percent 25.0 5.0 Valid Percent 25.0 5.0 Cumulative Percent 25.0 30.0

50 45 40 35 30 25 20 15 10 5 0 To make a deposit To enquire about balance To withdraw cash Frequency Percent

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Table 6 shows usage of telephone banking services among customers. It was found that 25% of the respondents use telephone banking services less than 5 times per month. 5% of the respondents use 5 to 10 times per month. 70% of them never use internet banking in a month. Usage of telephone banking services reveals the awareness about the customers towards the E banking services. From this cross tabulation it is clear that the respondents those are employees using E- Banking services more than others. Table 6.1- Occupation * Frequency of using of telephone banking in a month Crosstabulation
Count Frequency of using of telephone banking in a month Less than 5 Business Occupation Employee Other Total 5 8 2 15 5-10 times 1 2 0 3 Never use 14 17 11 42 20 27 13 60 Total

Table 6.1 represents that employees are using more telephone banking than the other respondents from the occupation of Business and other. Most of the respondents are not using telephone banking. Table 7- Main objective to come branchMain objective of visiting bank branch Frequency To make a deposit To enquire about balance Valid To withdraw cash Other Total 24 8 26 2 60 Percent 40.0 13.3 43.3 3.3 100.0 Valid Percent 40.0 13.3 43.3 3.3 100.0 Cumulative Percent 40.0 53.3 96.7 100.0

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50 45 40 35 30 25 20 15 10 5 0 To make a deposit To enquire about To withdraw cash balance Other Frequency Percent

Table 7 represents the reason for visit the bank branch. 40% of the respondents visit the bank to deposit their cash or cash equivalents. 13% of the respondents visit the bank branch to enquire about the bank balance. 43.3% of the above visit the bank branch to withdraws their amount. Remaining 3% of the respondents visit the bank branch for other purposes likes to enquire about the new services of the bank. Table 7.1- Occupation*Main objective of visiting bank branch Crosstabulation

Main objective of visiting bank branch To make a deposit Business Occupation Employee Other Total 6 14 4 24 To enquire about balance 2 5 1 8 To withdraw cash 11 8 7 26 1 0 1 2 Other

Total

20 27 13 60

Table 7.1 represents the cross tabulation of occupation and objective to visit branch of respondents. It shows that the respondents of business occupation are more in to withdraw cash. And the employee respondents are more in to make a deposit and more in to enquire about balance. Most of the people come to withdraw the cash from the bank.

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Table 8- Important reason for opening Internet Bank account

Reason to open internet account Frequency Percent Valid Percent Cumulative Percent Anytime service Safe and Secure Valid Low service charge Easy to maintain every activity Total 29 12 12 7 60 48.3 20.0 20.0 11.7 100.0 48.3 20.0 20.0 11.7 100.0 48.3 68.3 88.3 100.0

60 50 40 30 20 10 0 Anytime service Safe and Secure Low service charge Easy to maintain every activity Frequency Percent

Table 8 shows that the reason for open an internet bank.48% of the respondents prefer for convenience (Anytime Service).20% of them look for safe and secure transaction.28% of the respondents look for low service charge.11.7% of the respondents attracted towards internet banking for easy to maintain their transactions.

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Table 8.1- Occupation*Reason to open internet account Crosstabulation

Count Reason to open internet account Anytime service Safe and Secure Low service charge Easy to maintain every activity Business Occupation Employee Other Total 10 12 7 29 4 7 1 12 4 5 3 12 2 3 2 7 20 27 13 60 Total

Table 8.1 shows that the employee respondents are using more internet banking service. Then the respondents from business category are on second place to use the internet banking service. And remaining people those are students and housewives are on third place to use this service. Table 9- Reason to open bank account in HDFC BankReason to choose HDFC bank for account Frequency Traditional bank account Brand name of bank Valid Services offered by bank Other Total 17 22 17 4 60 Percent 28.3 36.7 28.3 6.7 100.0 Valid Percent 28.3 36.7 28.3 6.7 100.0 Cumulative Percent 28.3 65.0 93.3 100.0

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40 35 30 25 20 15 10 5 0 Traditional bank account Brand name of bank Services offered by bank Other Frequency Percent

Table 9 represents the important reason that chose bank as internet banking. 28.3% of the respondents shows the reason that they already have the traditional bank account in the same bank. 36% of them show the reason that the brand name of the bank. 28.3% of the respondents look for excellent service provide by the bank. Remaining from the above respondents shows their interest like association with the bank. Table 10: Fear while using Internet Banking Service
Fear Frequency Security Wrong Transaction Valid Hacking of account Other Total 15 18 24 3 60 Percent 25.0 30.0 40.0 5.0 100.0 Valid Percent 25.0 30.0 40.0 5.0 100.0 Cumulative Percent 25.0 55.0 95.0 100.0

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45 40 35 30 25 20 15 10 5 0 Security Wrong Transaction Hacking of account Other Frequency Percent

Table 9 represents the fear feel by respondents while using internet banking. 40% of respondents feel the fear of hacking of account. So most of the people feel fear from hacking of account. 30% of respondents feel the fear of wrong transaction. 25% of respondents feel the fear of security issues. And 5% respondents feel the fear from other issues. Table 11: Use of Internet Banking
Use of Internet Banking Frequency Easy Complicated Valid Moderate Total 24 60 40.0 100.0 40.0 100.0 100.0 20 16 Percent 33.3 26.7 Valid Percent 33.3 26.7 Cumulative Percent 33.3 60.0

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45 40 35 30 25 20 15 10 5 0 Easy Complicated Moderate Frequency Percent

This table represents that 33.3% of respondents feel that Internet banking is easy. 40% of people respondents feel that internet banking is neither easy nor complicated. And 26.7% people feel that internet banking is complicated. Table 11.1 Crosstabulation of Age group and cross tabulation
Age Group * Use of Internet Banking Crosstabulation Count Use of Internet Banking Easy 10-20 yrs 21-30 yrs Age Group 31-40 yrs Above 40 Total 7 1 20 3 4 16 8 7 24 18 12 60 0 12 Complicated 1 8 Moderate 1 8 2 28 Total

This table represents that from the age of 21-30 yrs respondents feel that Internet banking is easy. And respondents from above 40 yrs feel that internet banking is more complicated and moderate.

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Table 12: Service of Internet Banking Availed

Services of Internet Banking have you availed Frequency View Account balance and statement Transfer funds between account Pay bills Valid Other Request Create Fixed deposite online Request a demand draft Order a Cheque Book Total 23 Percent 38.3 Valid Percent 38.3 Cumulative Percent 38.3

13 16 1 2 1 4 60

21.7 26.7 1.7 3.3 1.7 6.7 100.0

21.7 26.7 1.7 3.3 1.7 6.7 100.0

60.0 86.7 88.3 91.7 93.3 100.0

45 40 35 30 25 20 15 10 5 0 View Transfer Account funds balance and between statement account Pay bills Other Request Create Fixed Request a deposite demand online draft Order a Cheque Book Frequency Percent

This table represents that 38.3% of respondents avail the service to view account balance and statement. 26.7% of respondents avail the service of HDFC Bank to pay bills. And 21.7 % of respondents avail the service of HDFC Bank to transfer funds between accounts.

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Table 13: Frequency of using internet banking in a monthFREQUENCY OF USING THE INTERNET BANKING SERVICE IN A MONTH Frequency 1-3 times 4-8 times Valid 8-15 times Total 6 60 10.0 100.0 10.0 100.0 100.0 31 23 Percent 51.7 38.3 Valid Percent 51.7 38.3 Cumulative Percent 51.7 90.0

60 50 40 30 20 10 0 1-3 times 4-8 times 8-15 times Frequency Percent

This table represents that 51.7% of respondents use internet banking service 1-3 times in a month. 38.3% of respondents use internet banking service 4-8 times in a month. And 10 % of respondents use internet banking service 8-15 times in a month. Table 13.1 :Occupation * FREQUENCY OF USING THE INTERNET BANKING SERVICE IN A MONTH Crosstabulation
Count FREQUENCY OF USING THE INTERNET BANKING SERVICE IN A MONTH 1-3 times Business Occupation Employee Other Total 8 14 9 31 4-8 times 9 10 4 23 8-15 times 3 3 0 6 20 27 13 60 Total

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This table represents the relationship of occupation with use of internet banking in a month. The respondents those are Employees are using more internet banking service than the respondents of other and business occupation.

Table 13.2:Table Age Group * FREQUENCY OF USING THE INTERNET BANKING SERVICE IN A MONTH Crosstabulation
Count FREQUENCY OF USING THE INTERNET BANKING SERVICE IN A MONTH 1-3 times 10-20 yrs 21-30 yrs Age Group 31-40 yrs Above 40 Total 8 5 31 8 4 23 2 3 6 18 12 60 2 16 4-8 times 0 11 8-15 times 0 1 2 28 Total

This table represents that the respondents comes in age group of 21-30 are using internet banking service than other age groups. By using T test in SPSS it comes to know that the mean of convenience is 5.38 and on test value of 6 it is found that 77% of people feel that convenience is moderately important for internet banking. Similarly curiosity has mean 6.30 and on the test value it comes to know that 90% of respondents feel that curiosity is very important for internet banking. Safety has 6.48 mean and user friendly has 6.45 mean and on test value 6.5 it comes to know that more than 92% respondents feel safety and user friendly is extremely important for internet banking. And low cost has mean value 6.30 and on test value 6.5 it comes to know that 90% of people feel that low cost is very important for it.

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Chapter 6
FINDINGS OF THE STUDY

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6.1 FINDINGS OF THE STUDY: 1. It is identified that only employees are using more internet banking compared to the other people. 2. In gender mostly the users are males. The usage of internet banking in females is very less. 3. It is identified that only middle age people i.e. age group between 21- 40 are using internet banking. 4. Below 20 and above 40 age group people using less internet banking services. 5. The people who are drawing the salary between Rs 20000 to Rs 25000 are responded more to this study. 6. Most of the respondents are using telephone banking less than 5 times in a month. 7. Most of the respondents focused on deposits and withdrawal of money from the bank. 8. Only the existing account holders are showing interest towards Internet Banking. 9. Most of the respondents considered secured transaction are the important factor to choosing Internet Banking. 10. Most of the respondents have savings account. 11. The more of the respondents are not using telephone banking. 12. Most of the respondents are employees those are using more telephone banking in a month. 13. Most of the respondents come to the branch for only withdraw of money. 14. And businessman are the most of the respondents comes for withdraw the money. 15. Most of the respondents use internet banking because of anytime service of internet banking. And employees are the respondents use more internet banking service. 16. Respondents are highly using brand name of bank to open account in HDFC Bank. 17. Most of the respondents have fear about hacking of their account. 18. Use of Internet banking is a moderate process according to most of respondents. And respondents from the age group 21-30 said that internet banking is easy. 19. Most of the customers use internet banking for view account and statements.
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20. Employees are the respondents use internet banking in a month. And from age group 21-30 use more internet banking in a month.

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Chapter 7
Suggestion and conclusion

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7.1 SUGGESTIONS AND CONCLUSION: 1. The bank should concentrate on creating awareness to the business holders and other people. 2. The involvement of female customers should be improved by the bank. 3. The transactions relating to senior citizens like pension and retirement benefits should be provided through Internet Banking. 4. The bank should minimize the traditional way of methods to maximize the internet banking services. 5. The activities should be undertaken by the bank to attract the new customers towards internet banking. 6. Ensure the security and confidentiality of customer information. 7. Provide a platform from where the customers can access different accounts at single time without extra charge. 8. Create a trust in mind of customers towards security of their accounts. Satisfied customers are central to optimal performance and greater financial returns. Customers are viewed as a group whose satisfaction helps in incorporating strategic planning efforts. With better understanding of customers' perceptions, banks can determine the actions required to meet the customers' needs. Measuring customer satisfaction helps to focus on customer outcomes and stimulate improvements in the work practices and processes used within the banks. From this survey, it is concluded that all the e-banking services such as ATM, internet banking, phone banking through phone, play an important role in building satisfaction amongst the customers and increasing their preferences towards the emerging e-channel banking services.

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Chapter 8
Bibliography

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8.1 BIBLIOGRAPHY
1. http://en.wikipedia.org/wiki/HDFC_Bank (en.wikipeadia.org) 2. http://www.presidencybusinessschool.org/download/Factors_influencing_consum er_adoptionof_internet_banking%20_in_India.pdf (www.hdfcbank.com) 3. (Jain & Malhotra, 2012) http://ijmr.net/wp-content/uploads/2013/03/DemogpaphicFactors-Affecting-the-Adoption-of-Internet-Banking-in-India.pdf 4. http://bankingtopia.com/benefits-of-e-banking/ 5. http://www.moneycontrol.com/competition/hdfcbank/comparison/HDF01
(www.moneycontrol.com)

6. http://www.imf.org/external/pubs/ft/fandd/2002/09/nsouli.htm (www.imf.org) 7. http://www.ehow.com/about_5147496_problems-related-net-banking-india.html

(www.ehow.com) 8. (Agarwal, http://anujagarwal.hubpages.com)http://anujagarwal.hubpages.com/hub/Advantage

s-and-Disadvantages-of-Internet-Banking 9. (Prema)http://www.presidencybusinessschool.org/download/Factors_influencing_ consumer_adoptionof_internet_banking%20_in_India.pdf 10. (Malhotra & Singh, 2007) http://www.ejbe.org/EJBE2009Vol02No04p43MALHOTRASINGH.pdf 11. (A. T. ALSUDAIR, 2012)http://www.jatit.org/volumes/Vol38No1/2Vol38No1.pdf

12. (Aditiya Widjana, 2011) http://webcache.googleusercontent.com/search?q=cache:HBzxXugMNwJ:academicjournalonline.com/index.php/ventura/article/download/5/4+&cd=1& hl=en&ct=clnk&gl=in 13. (Karimjadeh, 2012) http://journal-archieves19.webs.com/31-45.pdf 14. (Shah)http://webcache.googleusercontent.com/search?q=cache:iCxi8paVFO8J:w ww.iiste.org/Journals/index.php/IKM/article/download/690/583+&cd=1&hl=en& ct=clnk&gl=in 15. (Patil, http://www.iajet.org, 2012) http://www.iajet.org/iajet_files/vol.2/no.1/Internet%20Banking%20Adoption%20i n%20an%20Emerging%20Economy%20Indian%20Consumers%20Perspective.p df

(Vivek Saini)

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