Professional Documents
Culture Documents
CERTIFICATE
This is to certify that, MANISHA J SINGH student of M.com-II
(MANAGEMENT), Dnyansadhana College of Thane has completed the
project work and has submitted a report for the same in partial fulfilment of
the course by University of Mumbai for the batch 2017-18 in the topic A
STUDY OF STRESS MANAGEMENT WITH SPECIAL REFERENCE TO
EMPLOYEES OF HDFC BANK
(Sub-)
The student has work under our guidance and direction. The said report is
based on bonafide information.
Principal
DECLARATION
I MANISHA J SINGH here by declare that the following project report A
STUDY OF STRESS MANAGEMENT WITH SPECIAL REFERENCE TO
EMPLOYEES OF HDFC BANK
Is a results of my original research work, this view of mine and the project
which is to be completed as per the rules of Mumbai University for full time
M.com.
I honesty express that the information has been collected from genuine and
authentic sources. The sole motive is to learn the real business practices and
prepare project on it. Thus the main objective of collecting information are of
academic purpose and I assure that collected information shall be put to use
only for the project report and nothing else.
DATE:-
PLACE:-THANE SIGNATURE OF STUDENT
(MANISHA SINGH)
AKNOWLEDGEMENT
My first and foremost heart-felt thanks goes to Almighty , who gave me
strength , courage and showered me his grace to materialize my long
cherished desire in form of this thesis.
I express my sincere gratitude to my Research guide, ------------
Principal _______________ . Under his guidance I was successfully able to
overcome many difficulties in this research study and in my life personal life
as well. I could learn many thing from guider. His guidance and support
provide me the necessary insight in the entire research work and gave me the
very much needed correct and appropriate direction to complete this research
work within the stipulated time . I am deeply indebted and shall remain
grateful to her forever for his excellent guidance, caring, patience, and
providing me with an excellent atmosphere for doing this research. I am
fortunate to have such a guide in my academic life.
I deeply acknowledge with thanks, Professor and Head, and all Faculty
Member And Staff member for continuously supporting me throughout the
their valuable inputs , direction and motivation.
I take this opportunity to express my sincerest gratitude and thank to
__________________________________________________________________
__________________________________________________________________
________________________________
For providing me with very essential recommendation letters to the selected
banks.
INDEX
Sr. No. Content Page no
1 INTRODUCTION
1.1 Introduction of HDFC BANK
1.2 Concept of stress
1.2.1 Introduction to stress
1.2.2 Stress in Biological term
1.2.3 What is stress
1.2.4 Coping with stress at work
place
1.2.5 Stress management
1.2.6 Work place stress
1.2.7 Reduce your stress
2 Research methodology
2.1 Research objective
2.2 Sampling
2.3 Research design
2.4 Data analysis opinion and
interpretation
2.5 Employees opinion about how to
reduce stress
2.6
2.7 Time consideration
2.8 Limitation of the survey
2.8.1 Advantages of written questionnaires
2.8.2 Disadvantages of written
questionnaires
2.9 Findings
3 Biology
4 Annexure
CHAPTER 1
INTRODUCTION
INTRODUCTION
1.1.2 PROMOTER
HDFC 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, a strong market reputation, large
shareholder base and unique consumer franchise, HDFC was ideally positioned to
promote a bank in the Indian environment.
HDFC 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 bank's risk appetite. The bank is
committed to maintain the highest level of ethical standards, professional integrity,
corporate governance and regulatory compliance. HDFC Bank's business philosophy is
based on four core values Operational Excellence, Customer Focus, Product Leadership
and People.
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.
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. 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. The
acquisition added significant value to HDFC Bank in terms of increased branch network,
expanded geographic reach, enhanced customer base, skilled manpower and the
opportunity to cross-sell and leverage alternative delivery channels.
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network
of over 1229 branches spread over 444 cities across India. All branches are linked on an
online real-time basis. Customers in over 120 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 the centers where the NSE/BSE has a strong and active member
base. The Bank also has a network of about over 2526 networked ATMs across these
cities. Moreover, 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.
The Composition of the Board of Directors of the Bank is governed by the Companies
Act, 1956, the Banking Regulation Act, 1949 and the listing requirements of the Indian
Stock Exchanges where securities issued by the Bank are listed. The Board has strength
of 12 Directors as on March 31, 2008. All Directors other than Mr. Aditya Puri, Mr.
Harish Engineer and Mr. Paresh Sukthankar are non-executive directors. The Bank has
five independent directors and six non-independent directors. The Board consists of
eminent persons with considerable professional expertise and experience in banking,
finance, agriculture, small scale industries and other related fields.
None of the Directors on the Board is a member of more than 10 Committees and
Chairman of more than 5 Committees across all the companies in which he/she is a
Director. All the Directors have made necessary disclosures regarding Committee
positions occupied by them in other companies.
Mr. Jagdish Capoor, Mr. Keki Mistry, Mrs. Renu Karnad, Mr. Aditya Puri, Mr.
Harish Engineer and Mr. Paresh Sukthankar are non-independent Directors on
the Board.
Mr. Arvind Pande, Mr. Ashim Samanta, Mr. Gautam Divan, Mr. C. M.
Vasudev and Dr. Pandit Palande are independent directors on the Board.
Mr. Keki Mistry and Mrs. Renu Karnad represent HDFC Limited on the
Board of the Bank.
The Bank has not entered into any materially significant transactions during the year,
which could have a potential conflict of interest between the Bank and its promoters,
directors, management and/or their relatives, etc. other than the transactions entered into
in the normal course of business. The Senior Management have made disclosures to the
Board confirming that there are no material, financial and/or commercial transactions
between them and the Bank which could have potential conflict of interest with the Bank
at large.
1.1.8 TECHNOLOGY
The Bank has made substantial efforts and investments in acquiring the best technology
available internationally, to build the infrastructure for a world class bank. The Bank's
business is supported by scalable and robust systems which ensure that our clients always
get the finest services we offer.
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.
For organizations the company has a host of customized solutions that range from Funded
services, Non-funded services, Value addition services, Mutual fund etc. These affordable
plans apart from providing long term value to the employees help in enhancing goodwill
of the company.
The products of the company are categorized into various sections which are as follows:
Accounts and deposits.
Loans.
Investments and Insurance.
Forex and payment services.
Cards.
Customer center.
Agricultural
Lending
Source : http://www.hdfcbank.com/wholesale/prd_glance.htm
Payment Services
Access To Bank
NetSafe NetBanking
BillPay OneView
InstaPay InstaAlert
DirectPay ATM
Visa Money PhoneBanking
Online Donation Email Statements
Branch Network
Source: http://www.hdfcbank.com/nri/prd_glance.htm
The Reserve Bank of India had approved the scheme of amalgamation of Centurion Bank
of Punjab Ltd. with HDFC Bank Ltd. with effect from May 23, 2008. All the branches of
Centurion Bank of Punjab will function as branches of HDFC Bank with effect from May
23, 2008. With RBIs approval, all requisite statutory and regulatory approvals for the
merger have been obtained.
The combined entity would have a nationwide network of 1167 branches; a strong
deposit base of around Rs.1,22,000 crores and net advances of around Rs.89,000 crores.
The balance sheet size of the combined entity would be over Rs.1, 63,000 crores.
On March 27, 2008, the shareholders of the Bank accorded their consent to a scheme of
amalgamation of Centurion Bank of Punjab Limited with HDFC Bank Limited. The
shareholders of the Bank approved the issuance of one equity share of Rs.10/- each of
HDFC Bank Limited for every 29 equity shares of Re. 1/- each held in Centurion Bank
of Punjab Limited. This is subject to receipt of Approvals from the Reserve Bank of
India, stock exchanges and other requisite statutory and regulatory authorities. The
shareholders also accorded their consent to issue equity shares and/or warrants
convertible into equity shares at the rate of Rs.1,530.13 each to HDFC Limited
and/or other promoter group companies on preferential basis, subject to final regulatory
approvals in this regard. The Shareholders of the Bank have also approved an increase
in the authorized capital from Rs.450 crores to Rs.550 crores.
Centurion Bank of Punjab is one of the leading new generation private sector banks in
India. The bank serves individual consumers, small and medium businesses and large
corporations with a full range of financial products and services for investing, lending
and advice on financial planning. The bank offers its customers an array of wealth
management products such as mutual funds, life and general insurance and has
established a leadership 'position'. The bank is also a strong player in foreign exchange
services, personal loans, mortgages and agricultural loans. Additionally the bank offers a
full suite of NRI banking products to Overseas Indians. On 29th August 2007, Centurion
Bank of Punjab merged with Lord Krishna Bank (LKB), post obtaining all requisite
statutory and regulator approvals. This merger has further strengthened the geographical
reach of the Bank in major towns and cities across the country, especially in the State of
Kerala, in addition to its existing dominance in the northern part of the country.
Centurion Bank of Punjab now operates on a strong nationwide franchise of 404
branches and 452 ATMs in 190 locations across the country, supported by employee
base of over 7,500 employees. In addition to being listed on the major Indian stock
exchanges, the Banks shares are also listed on the Luxembourg Stock Exchange.
HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian
Bank". We 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 our efforts towards providing customer convenience have
been appreciated both nationally and internationally.
Awards In 2009
Awards In 2008
Table 1.5: Awards in 2008
Security: The bank provides long term financial security to their policy. The
bank
does this by offering life insurance and pension products.
Trust: The bank appreciates the trust placed by their policy holders in the bank.
Hence, it will aim to manage their investments very carefully and live up to this
trust.
Innovation: Recognizing the different needs of our customers, the bank offers a
range of innovative products to meet these needs.
Integrity
Customer centric
People care one for all and all for one
Team work
Joy and simplicity.
With cyber cafes and kiosks springing up in different cities access to the Net is going to
be easy. Net banking (also referred as e banking) is the latest in this series of
technological wonders in the recent past involving use of Internet for delivery of banking
products & services. Even the Morgan Stanley Dean Witter Internet research emphasized
that Web is more important for retail financial services than for many other industries.
Internet banking is changing the banking industry and is having the major effects on
banking relationships. Banking is now no longer confined to the branches were one has to
approach the branch in person, to withdraw cash or deposit a cheque or request a
statement of accounts. In true Internet banking, any inquiry or transaction is processed
online without any reference to the branch (anywhere banking) at any time. Providing
Internet banking is increasingly becoming a "need to have" than a "nice to have" service.
The net banking, thus, now is more of a norm rather than an exception in many developed
countries due to the fact that it is the cheapest way of providing banking services.
1.2.1.1 MEANING OF NET BANKING
Net banking is a concept which enables everyone to conduct business with a bank from
the comfort of home or office.
aaa
1.2.1.2 DEVELOPMENT OF NET BANKING IN INDIA
The financial reforms that were initiated in the early 1990s and the globalization and
liberalization measures brought in a completely new operating environment to the banks.
The bankers are now offering innovative and attractive technology-based services and
products such as Anywhere Anytime Banking, Tele-Banking, Internet Banking,
Web Banking, Net Banking, Mobile Banking, etc. to their customers to cope with
the competition. The process started in the early 1980s when Reserve Bank of India
(RBI) set up two committees in quick succession to accelerate the pace of automation of
operations in the banking sector. A high-level committee was formed under the
chairmanship of Dr. C. Rangarajan, then Governor of RBI, to draw up a phased plan for
computerization and mechanisation in the banking industry over a five-year time frame of
19851989. The focus by this time was on customer service and two models of branch
automation were developed and implemented. Having gained experience in the earlier
mode of computerization, the second Rangarajan committee constituted in 1988 drew up
a detailed perspective plan for computerization of banks and for extension of automation
to other areas such as funds transfer, e-mail, BANKNET, SWIFT, ATMs, net banking,
etc. The Government of India enacted the Information Technology Act, 2000 (generally
known as IT Act, 2000), with effect from 17 October 2000 to provide legal recognition to
electronic transactions and other means of electronic commerce. RBI had set up a
Working Group on net banking to examine different aspects of net banking. The Group
had focused on three major areas of net banking such as
(1) technology and security issues,
(2) legal issues and
(3) regulatory and supervisory issues.
RBI had accepted the recommendations of the Working Group, and accordingly issued
guidelines on internet banking in India for implementation by banks. The Working
Group has also issued a report on net banking covering different aspects of net banking.
Internet banking in India is currently at a nascent stage. While there are scores of
companies specialising in developing internet banking software, security software and
website designing and maintenance, there are few online financial service providers.
ICICI bank is the first one to have introduced net banking for a limited range of services
such as access to account information, correspondence and, recently, funds transfer
between its branches. ICICI is also getting into e-trading, thus offering a broader range of
integrated services to the customer.
Several finance portals for provision of non-banking financial services, e-trading and e-
broking have come up. Commercial applications such as Electronic Bill Presentment
(EBP) and Procurement systems may not be introduced in India immediately, but are
likely to have a greater impact than the retail applications. The corporate sector is
adequately computerized and has already recognized the important role of e-commerce in
future. Increasingly, companies are setting up websites even where there are no
immediate tangible benefits to them from doing so.
Internet Banking also has its advantages and disadvantages. Below are mentioned the
most popular advantages of using Internet Banking along with some unavoidable
disadvantages.
Convenience - online banking sites never close; they're available 24 hours a day,
seven days a week, and they're only a mouse click away;
Portability you now have access to money whenever there is an emergency,
whether or not you are in the country;
Transaction speed - online bank sites generally execute and confirm transactions
at the same rate or quicker than, ATM processing speeds;
Effectiveness they offer sophisticated tools, including account aggregation,
stock quotes and rate alerts to help you manage all of your assets more effectively.
Reduction in workload - No more standing in long lines at the bank, eliminating
endless paper based bank statements.
Net banking or internet banking works much like traditional banking. The primary
difference is that in net banking account and information is accessed, payments are made
and statements reconciled using computer rather than paper or the phone to complete
transactions. Instead of going down to local branch office when one bank online he/she
can accomplish multiple tasks at once with the click of a button.
Online banking is rapidly becoming more and more popular as consumers recognize the
advantages online banking has to offer. For one most banks charge fewer fees if you take
advantage of their online banking services. You can also stop receiving paper statements
if you like in many cases and conduct 95% of your business over the Web when you take
advantage of Internet banking.
What to Internet Banks do? The same things traditional banks do. They hold onto our
money and lend it out to others respectively. The manage loans and help us keep track of
our finances. Chances are if you own a bank account at a traditional bank they offer some
type of Internet banking or online services. The next time you stop into your branch
office you should ask them about online banking. You may find once you start you have
no desire to go back to traditional banking.
For those that have a hard time keeping track of paper statements, Internet banking is a
life saver. Internet banking is also advantageous for frequent travelers that need to keep a
close eye on their finances from abroad.
The HDFC Bank web site (www.hdfcbank.com) also features two versions of a demo
facility - one "interactive" and the other "guided" - making it possible for even Internet
illiterates to get comfortable with its services.
On the downside, however, 'registration' for the service involves downloading of a form
that needs to be posted/delivered to any of its branches - not exactly "web savvy" as we
would call it. Also, the form itself requires Adobe Acrobat Reader to be installed and the
file size will exceed 5.5 MB, which translates roughly into an hour or more of on-line
time. Its 3-question FAQ page also assumes a high level of computer knowledge from
users ... not consistent with the rest of the website.
BY HDFC BANK
HDFC Bank Savings and Current account holders can access their account through Net
Banking.
Currently, Net Banking service is offered to the HDFC Bank customers free with all
accounts. However, all minimum balance/deposit amount requirements of the relevant
accounts will need to be honoured. No separate fee is charged to access this service.
Currently, one can do any of the following:
Queries -
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
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.
The customer can be assured of complete privacy when you use HDFC Bank's Net
Banking facility. The bank has built several checks to safeguard the Net Banking
transactions. Before the user gain access to his/her account, he/she will be asked to enter
his/her unique customer ID and IPIN (password) to verify the identity. To maximise the
security and confidentiality of the transactions, ones password is not accessible to
anyone, not even bank employees.
To ensure the security of the transactions, the bank uses a technology called Secured
Socket Layer (SSL), which involves scrambling of the information between the
customer and the Bank. If an unauthorized user tries to access your account by keying
in various combinations while trying to guess your password, your account will
automatically get locked. Moreover, when the user log-in to Net Banking, the last date
and time of log-in will be displayed so that the user can make sure that nobody has
accessed his/her account.
In addition to these online security features, have been placed under the supervision of a
dedicated team to monitor the access to the web server and to prevent unauthorized
access. These features work together to maximise the security of your banking
transactions.
HDFC bank has implemented a new security solution for its customers - secure
access as security of the customer is banks top priority, the bank has initiated the
secure access solution to protect the customers from fraudsters and hackers.
Currently following transactions are covered under secure access
Transfer from one HDFC bank account to other hdfc bank account
Internet banking has been exploited by hackers and fraudsters to deceive the bank's
customer and commit frauds. While the bank has best-of-the-breed solutions, processes
and people deployed to extend secure banking to its customers, it is important for our
customers to know that "secUrity is incomplete without u". Customers need to follow
secure computing guidelines to avert any frauds or security breaches to their accounts,
as keys to the internet banking accounts are held by respective account owners in the
form of customer IDs and internet banking passwords (I PIN). Here are some internet
banking security tips provided by HDFC bank:
1. Keep your customer ID and IPIN confidential and do not disclose it to anybody.
2. Change your IPIN as soon as you receive it by logging into your net banking
account. Memorize your IPIN, do not write it down anywhere.
3. Refer "protect your computer accounts with strong passwords" section under
computer security tips.
4. Avoid accessing internet banking from shared computer networks such as cyber
cafes.
5. Do not click on links in the emails or sites other than www.hdfcbank.com to
access your net banking webpage.
6. Always visit the HDFC bank's net banking site through HDFC bank's home
page by typing the bank's website address (www.hdfcbank.com) on to the
browser's address bar. Users are encouraged to add the bank's url to favorites or
bookmark in the user computer browser.
7. Always verify the authenticity of the bank's net banking webpage by checking
its url as "https://netbanking.hdfcbank.com" and the pad lock symbol at the
bottom corner of the browser before putting in your customer ID and IPIN.
8. If your customer id and ipin appear automatically on the login page of net
banking webpage, you should disable "auto complete" feature on your browser.
To disable auto complete feature:
a. Open internet explorer, click on tools=> internet options=> content.
b. Click on "auto complete", under "personal information"
c. Uncheck "user names and passwords on forms", click on "clear
passwords"
d. Click "ok"
9. Use virtual keyboard feature while logging into your internet banking account.
10. Do cross check your last login information available in net banking upon every
login to ascertain your last login and monitor any unauthorized logins.
11. Always type your confidential account information. Do not copy paste it.
12. Monitor your transactions regularly.
13. Use HDFC bank's "InstaAlerts" service.
14. Always logout when you exit net banking. Do not directly close the browser.
CHAPTER 2
RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY
Descriptive research:
The research undertaken was a descriptive research as it was concerned with
specific
predictions, with narration of facts and characteristics concerning net banking
service
provided by HDFC Bank.
The following factors have been decided within the scope of sample design:
4.2.1 Universe of study: Universe of the study means all the persons who are
the customers of HDFC Bank in the world.
4.2.3 Sample Unit: In this project sampling unit consisted of the various
individuals who had their bank accounts with HDFC Bank.
It means what all tools are used to present the data in a meaningful way so that
it becomes easily understandable. In this research tables and graphs were used
for presenting the data.
In this research the tools of analysis used were percentages. SPSS software
were used to conduct Friedman Anova, Reliability analysis and Factor Analysis.
2. Shortage of time: The time period of study was very limited. It is very
difficult to have in detail study on project work due to limited time
period. The period of 4 to 6 weeks is not enough for the proper study of
the project.
3. Inadequate data: The data provided was not up to the mark due to
which we faced problems in our research.
Cost Factor: It was not possible to conduct extensive research due to paucity
of funds
CHAPTER 3
REVIEW OF
LITERATURE
REVIEW OF LITERATURE
.
A number of researches have been conducted on net banking and its adoption,
development and its perils. Due to shortage of time and resources, a review of all the past
researches done could not be mentioned in this research project. So, a snapshot of some
of the reviews have been presented.
Nath et.al (2001) in their study found that in every industry, E-commerce is
revolutionizing the way business is conducted. New business models are replacing
outdated ones and organizations are rethinking business process designs and customer
relationship management strategies. Banks are no exception to this transformation. This
study examines bankers' views on providing banking services to customers using the
web. Specifically, it addresses issues such as the strategic need for Internet banking, its
effect on customer-bank relationships, and customers' experiences in Internet banking.
Data collected from 75 banks show that most banks do not yet offer full-fledged Internet
banking. However, most have plans to do so. Furthermore, bankers see Internet banking
as a strategic opportunity that can reduce transaction costs, enhance customer service,
increase the customer base and improve cross-selling opportunities. Also, Internet
banking is perceived more favorably by banks that offer it compared to those that do not.
Corrocher (2002) in his study examined the drivers of the adoption of the Internet
banking, in order to understand its role with respect to the traditional banking activity and
to offer a comprehensive picture of the diffusion of such a technology within the sector.
In doing so, it analyses the role of firm-specific and non firm-specific (technology,
market, environment) characteristics in influencing the decision to adopt the new
technological platforms to perform on-line banking transactions within the retail segment
of the financial sector. The main purpose of this paper is to investigate the relationship
between the Internet banking and the traditional banking activity, in order to understand if
these two systems of financial services delivery are perceived as substitutes or
complements by the banks.
Leary (2002) in his study examined how Internet or electronic banking is slowly but
surely reviving itself after numerous attempts by various financial institutions and
financial intermediaries in the 1970 and 1980s. The standardization in technologies and
the public's familiarity with the use of personal computers and the Internet have made the
Internet bank or Internet banking site easier, cheaper and more cost effective than ever
before. This paper discusses the coming of age of Internet banking, the opportunity for
Internet banking and some of the obstacles and procedures that must be followed in order
to develop a sound Internet banking presence.
Bradley & Stewart (2003) conducted a research in which they studied the factors
driving the adoption of internet banking. The financial services environment has been
subject to changes on many fronts. Technological change and the advent of the Internet
are among the most dramatic and challenging areas of change for the sector. This paper
looks at retail banking and its adoption of online banking, in particular the factors driving
and inhibiting adoption by banks. An international Delphi study confirms the high level
of importance of the Internet for retail banking. By 2011, it is expected that bank
adoption of the Internet will be near universal. The key factors that are driving banks to
adopt online banking are the adoption by other banks, competitive forces, consumer
demand and the availability of technology. Working against adoption are banks'
perceptions that the Internet does not offer enhanced ability to deal with customers as
well as bank resistance to change, their existing legacy systems and the resources
required to adopt.
Singh & Malhotra (2004) in their study found that the tremendous advances in
technology and the aggressive infusion of information technology had brought in a
paradigm shift in banking operations. The purpose of this paper is to help fill significant
gaps in knowledge about the Internet banking landscape in India. The paper presents data,
drawn from a survey of commercial banks websites, on the number of commercial banks
that offer Internet banking and on the products and services they offer. It investigates the
profile of commercial banks that offer Internet banking, using univariate statistical
analysis, relative to other commercial banks with respect to profitability, cost efficiency,
and other characteristics. By the end of first quarter, 2004, differences between Internet
and non-Internet banks had begun to emerge in funding, in sources of income and
expenditures and in measures of performance. It was also found that the profitability and
offering of Internet banking does not have any significant correlation.
Laukkanen & Tommi (2007) in their research aimed to compare customer perceived
value and value creation between internet and mobile bill paying service. A qualitative in-
depth interviewing design was applied in order to ascertain the factors that create value
perceptions in fund transfer service via personal computer and mobile phone. The
findings suggest that efficiency, convenience and safety are salient in determining the
differences in customer value perceptions between internet and mobile banking. The
findings of the qualitative study, being more depth than wide in nature, deserve to be
quantitatively measured in future studies in order to provide more generalized results.
The paper provides enhanced information for business managers about both positive and
negative customer value perceptions in internet and mobile banking. By understanding
how and what kind of value different service channels provide for customers service
providers are better enabled to create actions to enhance internet and mobile banking
adoption. The contribution of the paper lies in achieving a more profound understanding
on consumer value perceptions to internet and mobile banking. It expands the literature
on electronic and mobile commerce and on electronic banking especially.
Nandan et.al (2008) in his paper discusses the concept of Internet Banking, perception of
Internet bank customers, non-customers and issues of major concern in Internet banking.
The state of Internet banking in India has been explored using various concepts like E-
banking continuum, and gap analysis related to the various services and the security
features offered. In order to have a clear and focussed insight about the perceptions of
users (and non-users) about Internet banking a survey was conducted. The findings of the
survey provide valuable insights into concern for security, reasons for lower penetration,
and likeliness of adoption, which have been used to make useful recommendations.
Mishra & Kiranmai (2009) in their study found that information technology is
considered as the key driver for the changes taking place around the world. According to
Heikki, the transformation from the traditional banking to e-banking has been a 'leap'
change. The evolution of e-banking started from the use of Automatic Teller Machines
(ATMs) and telephone banking (tele-banking), direct bill payment, electronic fund
transfer and the revolutionary online banking. The future of electronic banking would be
more interactive i.e., TV banking. Finland is the first country in the world to have taken a
lead in e-banking. In India, ICICI Bank initiated e-banking services during 1997 under
the brand name 'Infinity'. It has been forecasted that among all categories, online banking
is the future of electronic financial transactions. The rise in e-commerce and internet in
enhancing online security transformation and sensitive information has been the core
reason for the penetration of online banking in everyday life. The shift towards the
involvement of the customers in the financial service with the help of technology,
especially internet, has helped in reducing costs of financial institutions as well as
clients/customers who use the service at anytime and from virtually anywhere with access
to an internet connection.
Uppal (2009) in his study found that in the post-LPG (Liberalization, Privatization and
Globalization) era and Information Technology (IT) era, transformation in Indian banks is
taking place with different parameters and the contours of banking services are
dynamically altering the face of banking, as banks are stepping towards e-banking from
traditional banking. On the basis of five-point likert-type scale, this paper empirically
analyzes the quality of e-banking services in the changing environment. With different
statistical tools such as weighted average method and ranking, the paper concludes that
most of the customers of e-banks are satisfied with the different e-channels and their
services, but the lack of awareness is a major obstacle in the spread of e-banking services.
The paper also suggests some measures to make e-banking services more effective in the
future.
Kuisma et.al (2006) conducted a research to identify the reasons for consumer resistance
to Internet banking. The special interest is to explore resistance among those bank
customers who already have valid contracts for Internet banking but prefer to pay their
bills via ATM. The objective is to identify those characteristics generating resistance to
Internet banking and their connections to values of individuals. In order to achieve the
objective, 30 Finnish bank customers were interviewed in-depth using the means-end
approach and the laddering interviewing technique. The findings indicate both functional
and psychological barriers arising from service-, channel-, consumer- and
communication-related means-end chains inhibiting Internet banking adoption. The
contribution of the paper lies in achieving a more profound understanding of consumer
resistance to Internet banking, and further, in offering suggestions and practical advice for
service providers' decision-making.
The perusal of review of literature revealed that the internet banking had been studied in
relation to various aspects like its adoption, growth, development and expectations of the
customers. But no study has been conducted in relation to the Net Banking service
provided by HDFC Bank.
After 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 net
banking service with respect to the HDFC Bank. This gap had been identified and it had
led to the present research being undertaken.
The area where the study has been conducted was Jalandhar.
The current study was undertaken to achieve the following stated objectives:
CHAPTER 4
DATA ANALYSIS AND
INTERPRETATION
DATA ANALYSIS AND INTERPRETATION
Age:
Below 20 yrs 1 1%
20 35 yrs 33 33 %
35 50 yrs 40 40 %
50 65 yrs 17 17 %
65 yrs and above 9 9%
TOTAL 100 100 %
Qualification:
Undergraduate 5 5%
Graduate 65 65 %
Post Graduate 30 30 %
TOTAL 100 100 %
Occupation:
Businessman 32 32 %
Housewife 7 7%
Self Employed 17 17 %
Service 27 27 %
Student 4 4%
Professional 13 13 %
TOTAL 100 100 %
Annual Income:
Less than Rs 2 Lakhs 12 12 %
Rs. 2 6 Lakhs 27 27 %
Rs. 6 10 Lakhs 39 39 %
Rs. 10 15 Lakhs 17 17 %
Rs. 15 20 Lakhs 5 5%
Rs. 20 Lakhs and above 0 0%
TOTAL 100 100 %
Analysis and interpretation:
From the data collected it was found majority of respondents that is 40%
belonged to the age of 35 to 50 years, followed by the age group of 20 to 35 years.
It was found that the majority of the respondents were graduates. It was found
that the majority of the respondents were from the business class followed by the
service class and self employed people. It was found that the majority of the
respondents fell between the income group of Rs 6 to Rs 10 lakhs, followed by
income group between Rs 2 to Rs 6 lakhs.
Thus it can be concluded that the majority of the respondents were knowledgeable
and were well informed about the banking services.
Statement 1: Time period since the HDFC Banks services are being availed
Table 5.1 Time period since the HDFC Banks services are being availed
Percentage of
Time Period Number of respondents
respondents
Less Than 2 years 9 9%
2 5 years 18 18 %
5 10 years 31 31 %
More Than 10 years 42 42 %
Total 100 100 %
Figure 5.1 Time period since the HDFC Banks services are being availed
Analysis and interpretation:
From the data collected, it can be that the majority of the respondents that is 42% of the
respondents have been HDFC Banks customer for more than 10 years, followed by 5 to
10 years with 31% of respondents.
It can be concluded that the majority of the respondents have been HDFC Banks
customer for more than 10 years.
Table 5.2: Products and services of HDFC Bank availed by the customers
Table 5.3: Perception about the products and services offered by HDFC Bank
Figure 5.3: Perception about the products and services offered by HDFC Bank
Analysis and interpretation
From the data collected, it was found that the majority of the respondents that is 85% said
that the products and services offered by HDFC Bank were lucrative. While just 5% of the
respondents said that the products and services offered were non lucrative and the
remaining 15% were not able form any opinion.
It can be inferred that the majority of the felt that the products and services offered by
HDFC Bank were lucrative.
Table 5.5: Awareness regarding Net Banking Service provided by HDFC Bank
Awareness Number of respondents Percentage of respondents
Yes 96 96 %
No 4 4%
Total 100 100 %
Table 5.5: Awareness regarding Net Banking Service provided by HDFC Bank
Table 5.8: Reasons for which Net Banking service should be availed
Reasons Mean Rank Ranks
Convenience 3.12 1
Curiosity 5.07 7
Low cost 4.41 5
Quick service 3.33 2
Maintenance 3.46 3
Safety 4.48 6
User friendly 4.13 4
1 being the most important and 7 being the least important
Statement 10 : Difficulties faced while using the Net Banking service of HDFC Bank
Table 5.10 : Difficulties faced while using the Net Banking service of HDFC Bank
Number of Percentage of
Difficulties
respondents respondents
Logging in to your account 9 11.11 %
Making transactions 27 33.33 %
Safety issues 32 39.50 %
Unable to understand webpages 6 7.40 %
Regularly changing the IPIN and Password 7 8.64 %
Total 81 100 %
Figure 5.10 : Difficulties faced while using the Net Banking service of HDFC Bank
Analysis and interpretation:
It was found that the majority of the respondents that is 40% said that safety issues was
the major difficulty that they faced while using the Net Banking service, followed by
34% of the respondents who felt that making transactions with the bank through Net
Banking was difficult. However, 8% of the respondents faced difficulty in understanding
the webpages and 7% of the respondents felt that changing the IPIN and Password
regularly was difficult.
It was inferred that the majority of the respondents regarded the safety issues as the major
difficulty that they faced while using the Net Banking service.
Table 5.12: The main reason for which the bank branch is typically visited
Number of Percentage of
Reasons
respondents respondents
To make a deposit 31 31 %
To get a advice for investment purpose 13 13 %
To inquire about a balance 7 7%
To withdraw a cheque 23 23 %
To order a cheque book 15 15 %
To transfer funds between accounts 11 11 %
Total 100 100 %
Figure 5.12: The main reason for which the bank branch is typically visited
Statement 13: Agreement regarding Net Banking service being better than traditional banking
Table 5.13: Agreement regarding Net Banking service being better than traditional
banking
Figure 5.13: Agreement regarding Net Banking service being better than traditional
banking
Statement 14: Reasons due which Net Banking service is not popularly used
Table 5.14: Reasons due which Net Banking service is not popularly used
Reasons Mean Rank Rank
Net banking web pages are confusing 4.40 5
Use of computer or internet is difficult 4.53 6
Neither friends nor relatives use internet 4.03 4
Net banking facility is not secured 3.43 2
It is more expensive than going to a branch 4.76 7
Net banking offers no receipts on payments 3.28 1
Net banking is not reliable 3.57 3
1 being the most important and 7 being the least important
Variables Statements
The introduction of new technology has been changing the attire of banking. The brick
and mortar banking is slowly giving place to click of the mouse banking. Technology is
aiding globalization and integration of financial markets across the globe. Customers
expectations for new products and alternatives delivery channels have been rising. Banks
are under pressure to offer today, what customers would be expecting tomorrow. Thanks
to innovations and spread of new technology, banks today offer the customer a choice to
conduct his business across the counter, over phone or via a computer. The Rangarajan
Committee (1988) report is the first step for the introduction of computers. The Saraf
Committee (1994) on Technology issues relating to payments, cheques clearing and
securities settlements made several recommendations to improve the quality of service.
The introduction of new instruments such as ATM, retail Electronic Funds Transfer (EFT)
and Electronic Clearing Services (ECS) have all helped in developing an effective,
efficient and speedy payment and settlement systems.
In literature, the major emphasis have laid on significant innovation and investment is
under way that could lead to very rapid expansion in fully electronic business to business
and consumer to consumer payments in near time. While the pace of change in these
market makes it difficult to determine, eventually these innovations will generate
substantial effeciencies in retail payment system. Bank regulators are paying significant
attention to appropriate risk management of new technology. Evidence reveals a sense of
urgency about the adoption of new technology and reflects substantial competitive
pressure to act quickly.
The objective of the study was to study was to comprehend the Net Banking service
provided by HDFC Bank. The research was descriptive in nature. The universe of the
study was the customers of the HDFC Bank. The survey was carried out on 100
respondents. In this research for data analysis tools used were tables and graphs. Majority
of the respondents were aware of the Net Banking service provided by the bank and
availed the various services offered through net banking. Majority of the respondents felt
that net banking facility have enabled the customers to perform various banking
transactions online. It is hoped that the survey findings will have some useful
applications.
7.2 RECOMMENDATIONS