Professional Documents
Culture Documents
S.PRARTHANA
Of
A PROJECT REPORT
Submitted to the
Of
September, 2011
DHANALAKSHMI COLLEGE OF ENGINEERING
BONAFIDE CERTIFICATE
Date: ……………………
DECLARATION
DATE: (S.PRARTHANA)
ACKNOWLEDGEMENT
Last but not least, I wish to convey my sincere thanks to all the Staff members
of the Department of Management Studies and my friends for their help and
support.
I also tank my beloved parents for their best effort and comfort rendered to me
in completing the study successfully. Above all by no means I thank my God
Almighty for showering his divine blessing in terms of knowledge and comfort in
successful completion of the project.
ABSTRACT
Dena bank offers a wide range of banking products and financial services to
corporate and retail customer through a variety of delivery channels and through its
specialized subsidiaries and affiliates in the areas of investment banking. The study is
about the customer awareness towards internet banking service provided by Dena bank
with special reference towards T.Nagar branch. 150 samples are collected from the
customers. Different analysis has been done by using the statistical tools. The study is
hoped to be essential and good to reveal certain facts.
INTRODUCTION 1
INDUSTRY PROFILE 5
COMPANY PROFILE 8
II REVIEW OF LITERATURE 21
ANNEXURE
BIBLIOGRAPHY
LIST OF TABLES
1
INTRODUCTION
Customer awareness is about making the customer aware of his/her rights. It is
a marketing term which means that customers are aware of products or services, its
characteristics and the other marketing P's (place to buy, price, and promotion). High
prices, duplicate articles, underweight and under - measurements, rough behavior,
undue conditions, artificial scarcity are some of the ways by which customers are
exploited by manufacturers and traders. Limited information, limited supplies and low
literacy are factors causing exploitation of customers.
This called for strong legal measures to ensure that the manufacturers and
sellers observe uniformity and transparency in prices, stocks and quality of their
2
goods. Enactment of Customer Protection Act, 1986 was one of the most important
steps taken to protect the interests of customers. The provision of the Act came into
force, with effect from July 1, 1987. The act recognizes customer's right to seek
redresses and right to customer education. The salient features of the Act are as
follows:-
Applies to all goods and services unless specifically exempted by the Union
Government;
Covers all the sectors whether private, public or cooperative;
Enshrines the customer's rights related to safety. information, choice,
representation and redress and customer education.
The act gives customers an additional remedy besides those which may be
available to them under the provisions of other existing laws and they are free
to choose the remedy.
Empower customers seeking discontinuance of certain unfair and restrictive
trade practices, defects or deficiencies in services and stopping in services or
withdrawal of hazardous goods from the market.
3
OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVE:
To study customer awareness about the Internet Banking services provided by
Dena bank with special reference to T.Nagar branch.
SECONDARY OBJECTIVES:
To analyze customer satisfaction level in the internet banking services
To know the reason for preferring internet banking service in Dena bank
To know the customers perception about the internet banking services.
4
NEED FOR THE STUDY:
Dena bank offered Internet banking since 24th May 2008. But the fact is that
there are only limited customers who use this facility, compared to other services. Hence
to enable the awareness of this service in the minds of the customers the researcher is
interested to study "Customer awareness towards the internet banking services provided
by Dena bank with special reference to T.Nagar branch" in terms of
5
Industry Profile:
Banking in India originated in the first decade of 18th century. The General
Bank of India came into existence in 1786. This was followed by Bank of Hindustan.
Both these banks are now defunct. The oldest bank in existence in India is the State
Bank of India being established as "The Bank of Bengal" in Calculate in June 1806. A
couple of decades later, foreign banks like Credit Lyonnais started their Calcutta
operations in the 1850s. At that point of time, Calcutta was the most active trading
port, mainly due to the trade of the British Empire, and due to which banking activity
took roots there and prospered. The first fully Indian owned bank was the Allahabad
Bank, which was established in 1865. By the 1900s, the market expanded with the
establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of
India, in 1906, in Mumbai - both of which were founded under private ownership.
The Reserve Bank of India formally took on the responsibility of regulating the
Indian banking sector from 1935. After India's independence in 1947, the Reserve
Bank was nationalized and given broader powers. The banking in India was
controlled aid combated by the presidency banks, namely, the Bank of Bombay, the
Bank of Bengal, and the Bank of Madras -which later on merged to form the Imperial
Bank of India, and Imperial Bank of India, upon India's independence, was rename the
State Bank of India. The presidency banks were like the central banks and discharged
most old the font tins of central banks. They were established under charters from the
British Eats India Company. The exchange banks, mostly owned by the Europeans,
concentrated on financing of foreign trade. Indian joint stock banks were generally
under capil lazed a i d lacked the experience and maturity to compete with the
presidency banks, and the exchange banks. There was potential for many new banks
as the economy was growing Under these circumstances, many Indians came forward
to set up banks, and many banks were set up at that time, and a number of them set up
around that time continued o survive and prosper even now like Bank of India and
Corporation Bank, Indian Bank, Bank of Baroda, and Canada Bank.
6
banking industry. Indira Gandhi, the-then Prime Minister o: India expressed the
intention of the GOI in the annual conference of the All India Congress Meeting in a
paper entitled "Stray thoughts on Bank Nationalization”
The paper was received with positive enthusiasm. Thereafter, her move was
swift and sudden, and the GOI issued an ordinance and nationalized the 14 largest
commercial banks with effect from the midnight of July 19, 1969. Jayaprakash
Narayan, a national leader of India, described the step as a "masterstroke of political
sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the
Banking Companies (Acquition and Transfer of Undertaking) Bill, and it received the
presidential approval on 9th August, 1969. A second dose of nationalization of 6 more
commercial banks followed in 1980. The stated reason for the nationalization was to
give the government more control of credit delivery. With the second dose of
nationalization, the GOI controlled around 91% of the banking business of India.
After this, until the 1990s, the nationalize banks grew at a pace of around 4% closer to
the average growth rate of the Indian economy.
7
in the medium to long term. This report discusses these issues and challenges - both
intrinsic and external, such as
Consolidation
Consolidation, which has been on the counter over the last year or so, is likely
to gather momentum in the coming years. Post April 2009, when the restrictions on
operations of foreign banks will go, the banking landscape is expected to change
dramatically. Foreign banks, which currently account for 5% of total deposits and 8%
of total advances, are devising new business models to capture the Indian market.
Their full-fledged entry is expected to transform the business of banking in many
ways, which would be reflected in terms of greater breadth of products. Depth in
delivery channels and efficiency in operations. Thus Indian banks have less than three
years to consolidate their position. Despite the stiff resistance from certain segments,
consolidation holds the key to future growth. This view is underpinned by the
following:
Owing to greater scale and size, consolidation can help save costs and Improve
operational efficiency.
Banks will also have to explore different avenues for raising capital to meet
Norms under Basel-II
Owing to the diversified operations and credit profiles of merging banks,
consolidation is likely to serve as a risk-mitigation exercises as much as a
growth Engine.
8
COMPANY PROFILE
It became a Public Ltd. Company in December 1939 and later the name was
changed to Dena Bank Ltd.
In July 1969 Dena Bank Ltd. along with 13 other major banks was
nationalized and is now a Public Sector Bank constituted under the Banking
Companies (Acquisition & Transfer of Undertakings) Act, 1970. Under the provisions
of the Banking Regulations Act 1949, in addition to the business of banking, the Bank
can undertake other business as specified in Section 6 of the Banking Regulations
Act, 1949.
Milestones -
One among six Public Sector Banks selected by the World Bank for
sanctioning a loan of Rs.72.3 crores for augmentation of Tie-II Capital under
Financial Sector Developmental project in the year 1995.
One among the few Banks to receive the World Bank loan for technological
up gradation and training.
Launched a Bond Issue of Rs.92.13 Crores in November 1996.
Maiden Public Issue of Rs.180 Crores in November 1996.
Introduced Tele banking facility of selected metropolitan centers.
9
Growth and Development of the Organization:-
The evolve and position the bank as a world class, progressive, cost-effective
and customer friendly institution providing comprehensive financial and related
services: integrating frontiers of technology and serving various segment of society
especially the weaker section of the society: especially the weaker section of the
society: committed to excellence in serving the public and also excelling in the
corporate values. Corporate excellence ensnare from good corporate governance
exercised by adopting standard of transparency, accountability, professionalism,
social responsiveness, and ethical business practices with this in view, the has been
making efforts for adopting the best practices. The bank commitment management
and to ensure best performance by staff at al the levels to maximize the operational
efficiency. Adopting the corporate governance as a work ethos, the bank is committed
to enhancing the stakeholder’s value.
An analysis of the financial position of the bank for the year 2002-03, by the
accounts department of Dena bank, copy of which is in the possession of Indian
Express, showed that the bank's CAR stood at 9.33% would go down as low as 6.02%
as per the latest RBI guidelines. In simple terms, a low CAR implies that the bank
would be trouble there is a run on it since it has overexposed itself.
Another element of doubts in the results is the fact that the bank had reversed
an amount of Rs.18.40 crores to the balance sheet as disputed tax liability. This was
10
based on the expert opinions received by bank on tax consultants and also on a high
court together accounted for Rs.83.40 crores of profit.
1. Personal
In the Dena Bank Personal Banking section, the organization offer its services
with a personal touch by reaching out to all in various manners, one of them is
through offering a basket of our Deposit Schemes which delivers a strong return on
all you personal savings and our Loan Schemes which provides the required financial
assistance in your times of need.
2. Corporate
Corporate Finance
Dena Bank provided financial assistance to the business entities engaged in
various activities of manufacturing, trading and service.
Term Finance
Term Loan / Finance covers funds required for acquiring means of production
such as land, building and plant and machinery etc. These could be for setting up new
projects or expanding the present activities. Term finance is gernally give for a longer
period and is repayable in installments over the period with or without Moratorium.
The period and the installments are determined based on the repayment capacity of
the project / borrower.
11
Working Capital Finance
Working Capital Finance (WCF) is extended for carrying our normal trading /
manufacturing activities. The working capital finance is provided for a relatively
shorter period generally for a period of 1 year and renewed on yearly basis
considering the performance of the borrower.
The WCF is considered only after project nearing completion and after full tie
up of term loan requirement.
The Working Capital limits of the borrower are assessed by adopting various
methods such as Projected Turnover Method (Nayak Committee Recommendation),
Permissible Bank Finance Method, Cash Budget Method etc. depending upon the
aggregate working capital limit required / enjoyed from the banking system, nature of
activity, production cycle etc. Working Capital finance is in the form of pre-sale and
post-sale limit. In Pre Sale Finance the advance is granted for acquiring Inventory for
production / processing or trading purpose while the Post -Sale Finance is extended
against the receivable. Dena Bank encourages Post-Sale finance in the form of
purchase / discounting of bills etc.
12
Non Fund Based Credit Assistance
The Business units also require Credit Assistance for procurement of Goods,
where the funds are not involved. Such facilities are available against the assured
commitments / guarantee from the Lending Institutions.
Dena Bank is extending such Non Fund Based assistance to me eligible units in the
form of:
Issuance of Guarantee of various types like Performance, Financial, Bid Bond,
Tender Deposit / Earnest Money etc. and
Issuance of Letter of Credit
Deferred Payment Guarantee
Export Credit
Bank extends credit to Exporters at Competitive rates, at both Pre-shipment
and Post-shipment stages.
Recently, Bank has introduced Gold Card Scheme which provides cheaper
export credits to the eligible borrowers. Selected Clients engaged in exports are also
suitably rewarded in the form of Export Credit Denominated h Foreign Currency viz.
PCFC (Pre Shipment) / REBA (Post Shipment Credit).
Specific Schemes
The Bank has devised specific schemes for the following Sectors:
Educational Institutions,
Builders & Developers,
Hospitals,
Hotels & Restaurants &
Entertainment Industry.
3. NRI Desk
With over 1100 branches spread across the country, Dena Bank is your ideal
banking partner if you are a Non-Resident Indian.
13
All transactions by NRIs in Indian Banks are governed by FBI Rules and
Regulations.
Phone Pay
Get a SMS alert when bill is due and issue payment instructions in
accordance.
Internet
If you have access to the internet, you can view and pay your bills online at
www.denabank.com. You will receive new bill notifications, due date reminders and
payment confirmations via email.
7. Other Services:-
Dena Bank, your trusted family bank, now is proud to offer a range of
sophisticated banking services by way of
Any-branch banking,
Multi City cheque,
Dena ATM's,
Dena Cards,
Online remittance,
Internet Banking,
Mobile banking,
Tele banking,
Online utility Bill Payment,
Value added Service through ATM,
Kiosks, loans and many more.
With over 1100 branches across the country, we are always ready to serve our
customers, and to offer them the best of the technology-enabled banking products and
services.
15
2.5 Organization Structure and Organization Chart Organization
Structure:-
HEAD OFFICE
REGIONAL OFFICE
BRANCHES
16
A.C.Katial
(DGM)
S.J.Majumdar
(AGM)
G.D. Sinha
(Senior Manager)
Hakeem Alam
(Manager)
Deepika Kansal
(Officer)
17
Punjab National Bank:-
Established in 1895 at Lahore, undivided India, Punjab National Bank (PNB)
has the distinction of being the first Indian b ink to have been started solely with
Indian capital. The bank was nationalized in July 1969 along with 13 other banks.
From its modest beginning, the bank has grown in size and stature to become a front-
line banking institution in India at present.
Bank of India:-
Bank of India was founded on 7th September, 1906 by a group of eminent
businessmen from Mumbai. The Bank was under private ownership and control till
July 1969 when it was nationalized along with 13 other banks.
Beginning with one office in Mumbai, with a paid-up capital of Rs.50 lakh
and 50 employees, the Bank has made a rapid growth over the years and blossomed
into a mighty institution with a strong national presence and sizable international
operations. In business volume, the Bank occupies a premier position among the
nationalized banks.
18
The Bank has 3021 branches in India spread over all states/ union territories
including 136 specialized branches. These branches are controlled through 48 Zonal
Offices. There are 28 branches/ offices (including three representative offices) abroad.
The Bank came out with its maiden public issue in 1997 and follow on Qualified
Institutions Placement in February 2008. Total number of shareholders as on
31/03/2009 is 2, 35589.
While firmly adhering to a policy of prudence and caution, the Bank has been
in the forefront of introducing various innovative services and systems. Business has
been conducted with the successful blend of traditional values and ethics and the most
modern infrastructure. The Bank has been the first among the nationalized banks to
establish a fully computerized branch and ATM facility at the Mahalaxmi Branch at
Mumbai way back in 1989. The Bank is also a Founder Member of SWIFT in India.
It pioneered the introduction of the Health Code System ir 1982, for evaluating/ rating
its credit portfolio.
Bank of Baroda:-
Bank of Baroda believes in the strength and integrity of relationships built
with its customers like you. With over 101 years of experience in the banking industry
and a wide network of over 3000 branches all over the county, it has always been
active in extending financial support and adapting to customer's charging needs.
Its Deposit Products, Retail Loans, Credit Cards and Debit Cards help the
customers with their growing financial needs. With facilities like Lockers it ensure
that customer's valuables are safe with it. Its countrywide branches offer the
customers convenience and ease in operating them account wherever they are. Its 24-
hour ATMs enable them to withdraw cash, check their account balance and request for
a new cheque book even after banking hours.
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The Company's principal activity is to provide commercial banking and other
related services. The Company also provides in merchant banking, asset management
and other related services. The company's banking product:; and services are provided
through 1184 branches offices, 387 ATMs all over India. The Company operates only
in India.
21
CHAPTER II
22
REVIEW OF LITERATURE
INTRODUCTION
The process of development along with the expanding globalization and
liberalization process has increased the number of customer related issues. Customer
protection has earned an important place in the political, economic and social agendas
of many nations. In India, the Government has taken many steps including legislative, to
protect customers.
Customer awareness is the knowledge that a customer should have about his/her
legal rights and duties. It is must for a customer to follow these rights. It is implemented
for the protection of the customer, so that the customer is not exploited by
the seller of the products.
23
Customer awareness is a marketing concept that measures customers' knowledge of a
brand's existence. At the aggregate (brand) level, it refers to the proportion of
customers who know of the brand. Customer awareness remains fundamental to
customer life us the interaction initiation point to the brands. The approach takes into
account sources of brand equity - customer awareness, customer/brand loyalty, and
image (perceptions/associations) in the minds of customer.
Brand equity is the positive effect of the brand on the difference between the
prices that the customer accepts to pay when the brand known compared to the value of
the benefit received.
There are two schools of thought regarding the existence of negative brand
equity. One perspective states brand equity cannot be negative, hypothesizing only
positive brand equity is created by marketing activities such as advertising, PR, and
promotion. A second perspective is that negative equity can exist, due to catastrophic
events to the brand, such as a wide product recall or continued negative press
attention.
Brand recognition - Either the brand name or both the brand name and category
name are presented to respondents.
24
Brand recall - the product category name is given to respondents who are asked to
recall as many brands as possible that are members of the category.
Top of mind awareness - as above, but only the first brand recalled is recorded
(also known as spontaneous brand recall).
Research on metrics
There has been discussion in industry and practice about the meaning and value
of various customer awareness metrics. Recently, an empirical study appeared to put this
debate to rest by suggesting that all awareness metrics were systematically related,
simply reflecting their difficulty, in the same way that certain questions are more
difficult in academic exams.
Brand recall
Brand Recall is the extent to which a brand name is recalled as a member of a
brand, product or service class, as distinct from brand recognition.
Common market research usage is that pure b -and recall requires "unaided recall".
For example a respondent may be asked to recall the names of any cars he may know, or
any whisky brands he may know.
Some researchers divide recall into both "unaided" and "aided" recall. "Aided
recall" measures the extent to which a brand name is remembered when the actual brand
name is prompted. An example of such a question is "Do you know of the "Honda"
brand?"
In terms of brand exposure, companies want to look for high levels of unaided
recall in relation to their competitors. The first recalled brand name (often called "top of
mind") has a distinct competitive advantage in brand space, as it has the first chance of
evaluation for purchase.
25
Brand Recognition
Brand Recognition is the extent to which a brand is recognized for stated brand
attributes, parts, offerings, or communications.
Stability of responses
While customer awareness scores tend to be quite stable at aggregate (level)
level, individual customers show considerable propensity to change their responses to
recall based customer awareness measures. For top of mind recall measures, customers
give the same answer in two interviews typically only 50% the time. Similar low levels
of consistency in response have been recorded for other cues to elicit brand name
responses
DEFINITION:
26
front line in sales. Therefore, it is important to implement customer awareness programs
that will introduce and make the target audience aware of the products and services a
company offers.
Also, only knowledgeable and alert customers aware of their rights and
responsibilities can protect themselves effectively. The need of the hour is,
therefore, to educate the common customers particularly those in rural areas
who are more susceptible to exploitation. Once they are educated and made
aware of the schemes that have been drawn up for their benefit and also the
redressal forum that is available, the benefit of various schemes, in true sense,
will reach the common customers of the country.
It is, therefore, our bounden duty to play our part jointly and effectively in
disseminating various schemes to the common customers of the country. In
this regard, the role of the voluntary customer organizations, customer
activists, non-governmental organizations, educational institutions and media
cannot be ignored.
27
2) Making existing and potential customers knowledgeable about products/services,
customer awareness programs create more informed buying decisions.
Customers cannot purchase products and services if they do not know they
exist. A lack of customer awareness in any industry can harm sales. If specific
products and services are. better known, those products and services will remain
on the front line in sales. Therefore, it is important to implement customer
awareness programs that will introduce and make the target audience aware of
the products and services a company offers. Customer awareness programs can
be initiated through the utilization of flyers, brochures, television, radio, guides,
fact sheets, information posted to a Web site, school programs, and other
sources depending upon the topic and the message delivered.
Many people are ignorant of their rights to get protected against the
exploitation by so many others. So when there is a forum for such redress of
grievances there seems to be no such exploitation by many; and becomes a rare
one. So in Older to get a clear picture of the level of exploitation of customers,
the awareness is required.
Function
Customer awareness plays a key role in customer decision making. By increasing
a potential or current customer's knowledge about a product, service or business, a
healthy economic environment is established in which customers are informed and
protected and businesses are accountable.
28
Considerations
Customer education is an ongoing process that considers a variety of factors,
including price, reputation, personal knowledge, history, social issues and other
factors.
Benefits
There are several significant benefits to customer awareness for both individuals
and society as a whole.
Types
There are several different types of customer awareness Media awareness
involves a customer's knowledge of the advertising surrounding a given product or
company. Media awareness also encompasses independent product reviews online or
in print publications. Cost awareness involves comparing the prices of a similar product
among different competitors.
29
Design a logo that distinctly identifies your product or public service company.
Create a memorable character like Mr. Clean or Smokey the Bear to,
respectively, promotes your product or public service announcement.
Develop a small booklet that contains vital information about your product or
information that you want distributed. Have it printed at a local print shop. Hire
people to hand these booklets out at retail outlets or high traffic areas, inviting
customer to try the product or read more about a particular issue.
Schedule a seminar at schools, office complexes or manufacturing plants if
you have information that is vital to students or workers. Discuss the particular
topic and explain the steps people can take to resolve any particular issues.
Advertise your product or public service announcement on radio stations that
appeal to your target audience. Run the advertisement frequently in the early
stages of your product introduction or public service message to build customer
awareness among customers.
Promote your product or public service message on television when your target
audience is most likely to view it. Place full-page ads in the newspaper in the
business section or in a section related to your product or public service
message.
Brand equity:
Brand equity is the marketing effects and outcomes that accrue to a product with
its brand name compared with those that would accrue if the same product did not have
the brand name. Fact of the well-known brand name is that, the company can sometimes
charge premium prices from the customer. And, at the root of these marketing effects is
customers' knowledge. In other words, customers' knowledge about a brand makes
manufacturers and advertisers respond differently or adopt appropriately adept measures
for the marketing of the brat d. The study of brand equity is increasingly popular as
some marketing researchers have concluded that brands are one of the most valuable
assets a company has. Brand equity is one of the factors which can increase the
financial value of a brand to the brand owner, although not the only one. Elements that
can be included in the valuation of brand equity include (but not limited to): changing
market share, profit margins, customer recognition of logos and other visual elements,
30
brand language associations made by customers, customers' perceptions of quality and
other relevant brand values.
There have been three different perspectives for considering brand equity; The
customer- based perspectives, the financial perspectives and combined perspectives.
While this study focus on the customer based perspectives.
Customer- Based Brand Equity is defined as "a set of Brand asses aid
liabilities linked to a brand, its name and symbol that add to or subtract from the
value provided by a product or service to a firm's customers.
31
Advertising: Advertising also helps to create Customer awareness in a big
way. Take any brand name Fevicol, Vicks, Pepsi all have used ads for creating
awareness among their customers.
Public Relations: The coverage that the fourth estate and magazines
provide a brand also helps in building awareness about a brand.
Peer Group Opinion: Peer group opinion also plays an important part in
the whole brandy awareness exercise. Usually people tend to discuss a lo: about the
brand and tend to share their experiences or some recent ad's they have seen which in
turn increases customer awareness of their peers.
32
Recall of Ads: In some cases the customer awareness is also high due to
specific ad recall, which is very high.
It indicates stronger brand position in the mind. Still a; a higher level is the top
of the mind recall; it is the brand, which comes first to the mind. The top of mind
awareness indicates a relative superiority a brand enjoys above others. Sometimes a
brand becomes so dominant that it becomes the only recalled brand in the product
category. Very few brands are able to achieve dominance.
Brand Association:
The association's customers make with brand support brand equity. These
associations may include product attributes, a celebrity spokesperson or a symbol.
Brand associations are driven by brand identity-what the: organization wants the
brand to stand for in the customers mind. A key to brand building then is to develop
and implement brand identity.
Invariably all brands come to acquire a meaning in the mini of the customer.
Customers associate different dimensions of the product including its use and use
situations to the brands. Brand association, therefore, is anything linked to the memory
of a brand.
Brand identity:
Brand identity is a unique set of brand associations that the braid strategist
aspires to create or maintain. These associations represent what the brand stands for
and imply a promise to customers from the organization members.
Brand identity should establish a relationship between the brand and the
customer by generating a value proposition involving functional, emotional or self-
expressive benefits.
33
Factors in Customer Adoption of Internet Banking
In this section, we first describe the theoretical framework and second, provide
findings relating to some important gender differences discovered. The theoretical
framework was developed from the themes identified in the analysis results, as follows.
We first observed that some themes were deemed more important than others by
participants when making their banking service delivery channel choices and selected
these as factors in the model. Second, we noted that several of these factors appeared
interrelated. Third, a temporal sequence for some factors was suggested by the way
participants linked these factors in the data. A summary of the framework follows, with
more important factors as indicated by the analysis noted in the relevant descriptions.
At the top of figure 1, the framework shows that a bank must first attract
banking customer attention to the internet banking service before the customer, will
consider internet banking. However, unless the customer has a high level of internet
accessibility at home or at work, she is unlikely to consider using internet banking. The
customer also assesses whether it is convenient to conduct her banking that way
(convenience), how usable die application appears (usability), and her perceived
competence at internet use and banking application use (self-efficacy). The four
factors of accessibility, self-efficacy, convenience and usability are interrelated. The
customer also considers whether the perceived relative advantages of internet banking
compared with other banking forms outweigh perceived risks and costs. In addition,
the availability of sufficient support and in depth knowledge from the bank and its
employees contribute significantly to the adoption decision.
35
CHAPTER III
36
Research Methodology
Research design:
Research design is the plan, structure, and strategy of investigation conceived so as
to obtained answers to research questions. Research design is purely a framework or a
plan for study that guides in the collection of data. Descriptive research design is
adopted for analyzing the data.
Research Method:
The research design is a Descriptive Research. Descriptive statistics was tabular,
graphical & numerical summaries of data. Its main purpose is to facilitate the
presentation and INFERENCEof data. Descriptive Research design involves description
of the variables making up the demographic and geographic profile of the sample
Source of data:
Primary Data:
Primary data has collected directly from customers through structured
questionnaires (Individual sample units)
Secondary Data:
Secondary data has collected from the various magazines, journals, website of
DENA BANK and various websites.
Sampling Method:
The population includes male and female customers residing in the area of
T.Nagar with the criteria: Customers with Dena bank. In this project convenience
sampling method is followed.
37
Definition: Convenience.
In convenience sampling, a sample is obtained by selecting convenient
population elements from the population.
Sample Size:
Our Sample size was 150, who fulfill the basis criteria- Customers with Dena
bank.
Sampling unit:
A sample unit is a single individual, who is having Dena bank accounts.
Structure of Questionnaire:
The questions formulated were structured and non-disguised. The questions were
asked in order to get all the necessary information and to see that the respondents could
answer them with case. This pattern adopted facilitated in analyzing the data.
38
2. Dichotomous questions
This type of questions is of 'Yes' or 'No' format. There are only two choices of
answers and the respondent has to choose either 'Yes' or 'No'.
3. Open questions
These are also known as 'free-answer' type questions.
39
The statistical tool used for analysis of the data is Chi-square test.
Based on the answer received on the question in the questionnaire, the
following analysis and findings have been derived.
Chi-square test:
Chi-square is a non-parametric test which can be used to determine categorical
data shows dependency or that two classification are independent. It can also make
comparisons between the theoretical population and actual data, when categories are
used. It is mostly used most frequently by marketing researches to test hypothesis.
This test is employed for testing hypothesis when distributed population is not
known and when nominal data is to be analyzed. Chi-square aims at determining
whether the difference exists among graphs of data or whether the differences are due
to sampling. Chi-square analysis is used to find out dependency between two different
attributes.
2
=∑ (Oi-Ei)2 / Ei
Where,
Oi = Observed frequency
Ei = Expected frequency
40
CHAPTER IV
41
DATA ANALYSIS AND INTERPRETATION
TABLE No 4.1
DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR GENDER
Customer Mode
Gender No. of respondents Percentage
Male 80 54
Female 70 46
Total 150 100
Source: Primary Data
CHART NO 4.1
Sales
Male
Female
INFERENCE:
From the above table, 54 per cent of the respondents are Male, 46 Per cent of
the respondents female.
42
TABLE No 4.2
DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR AGE
No.of. Respondents
70
60
50
40
30
20
10
0
Below 20 20-30 30-40 40-50 Above 50
INFERENCE:
From the above table, 25 Per cent of the respondents are of 40-50 years old, 24
Per cent of the respondents are of 20-30 years old, 20 Per cent of the respondents are
of 30-40 years old, 18 Per cent of the respondents are above 50 years old and the
remaining 1325 Per cent of the respondents are below the age of 20.
43
TABLE No 4.3
DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR
OCCUPATION
Mode of Occupation
Occupation No. of. Respondents Percentage
Business 27 23
Govt. Employees 25 17
Retired 35 15
Private Sectors 40 27
Others 23 18
Total 150 100
Source : Primary Data
CHART No 4.3
Business
Govt. Employees
Retired
Private Sectors
Others
INFERENCE:
The above table shows that, 27 Percent of the respondents are Private sector,
23 Percent of the respondents are business person, 18 Percent of the respondents are
others, 17 Percent of the respondents are Govt. employees and the remaining is
retired.
44
TABLE No 4.4
DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR INCOME
LEVEL
Category of Income Level
Income Level No. of. Respondents Percentage
Below 1 Lakh 44 29
1 Lakh - 3 Lakh 48 32
Above 3 Lakh 58 39
Total 150 100
Source : Primary Data
CHART No 4.4
No. of . respondents
Below 1 Lakh
1 Lakh - 3 Lakh
Above 3 Lakh
INFERENCE
From the above table, 39 percent of the respondent's annual income are above
Rs.3 Lakh, 32 percent of the respondent's annual incomes are between Rs.1 Lakh -3
Lakh. Remaining 29 percent of the respondents below Rs.1 Lakh.
45
TABLE No 4.5
DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR ACCOUNT
HELD WITH THE BANK:
Having account in Dena Bank
Status No. of. Respondents Percentage
Below 1 Year 25 16.67
1-3 Years 33 22
3-5 Year 41 27.33
Above 5 Years 51 34
Total 150 100
Source : Primary Data
70
60
50
40 Percentage
30 No. of. Respondents
20
10
0
Belwo 1 Year 1-3 Years 3-5 Years Above 5 years
INFERENCE
From the above table, 39 percent of the respondents are having above 5 years
with the bank, 27.33 percent of the respondents are between 3-5 years, and 22 percent
of the respondents are 1-3 years. Remaining 16.67 percent of the respondents are
having account below 1 year with the bank.
46
TABLE No 4.6
DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR AWARENESS
ABOUT DENA BANK :
Awareness about Dena Bank
Status No. of. Respondents Percentage
Yes 150 100
No 0 0
Total 150 100
Source : Primary Data
CHART No 4.6
No. of . respondents
250
200
150
No. of. Respondents
100
50
0
Yes No
INFERENCE:
From the above table, 100 percent of the respondents are aware of Dena Bank.
47
TABLE No 4.7
DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR
CONVENIENT MODE OF BANKING:
Classifications based on customer's convenient mode of banking :
Status No. of. Respondents Percentage
Branch 25 16.67
Internet banking 30 20
Phone banking 15 10
Mobile banking 25 16.67
ATM Services 55 36.66
Total 150 100
Source : Primary Data
CHART No.4.7
100
90
80
70
60
50
Percentage
40
No. of . Respondents
30
20
10
0
Branch Internet Phone Mobile ATM
banking banking banking bankin Services
INFERENCE:
From the above table, 36.66 Percent of respondents are aware about ATM
service, 20 Percent of respondents are aware about Internet banking services, 16.67
Percent of respondents are aware about branch banking and mobile banking service,
remaining 10 Percent of respondents are aware about phone banking service.
48
TABLE No 4.8
DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR AWARENESS
ABOUT THE INTERNET BANKING SERVICES:
Awareness about internet banking services
Status No. of. Respondents Percentage
Yes 125 83.33
No 25 16.67
Total 150 100
Source : Primary Data
CHART No 4.8
200
150
Percentage
100
No. of. Respondents
50
0
Yes No
INFERENCE:
From the above table, 83.33 percent of the respondents are aware of the
internet banking service offered by the bank the remaining 16.67 percent of
respondents are unaware of it.
49
TABLE No 4.9
DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR USAGE OF
INTERNET BANKING SERVICES:
Awareness about internet banking services
Status No. of. Respondents Percentage
Yes 68 45
No 82 55
Total 150 100
Source : Primary Data
CHART No 4.9
Yes
No
INFERENCE
From the above table, 45 percent of the respondents are using internet banking
service offered by the bank and the remaining 55 percent of respondents are not using
it.
50
TABLE No 4.10
DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR PERIOD OF
USAGE OF INTERNET BANKING SERVICES:
Period of usage of internet banking services
Status No. of. Respondents Percentage
Never used 82 55
Less than 1 year 23 15.33
1-2 years 15 10
Above 2 years 30 20
Total 150 100
Source : Primary Data
CHART No 4.10
INFERENCE
From the above table, 55 percent of the respondents never used this service, 20
percent of the respondents have used this service above 2 years, and 15.33 percent of
the respondents have used this service below 1 year. Remaining 10 percent of the
respondents are using this service between 1-2 years.
51
TABLE No 4.11
DISTRIBUTION OF RESPONDENTS ACCORDING TO THE TRANSACTIONS
THEY MADE THROUGH INTERNET BANKING SERVICES:
Period of usage of internet banking services
Status No. of. Respondents Percentage
Balance Enquiry 12 17.65
Mini Statement 11 16.18
Statements of Account 12 17.65
Cheque based enquiry 9 13.24
Funds Transfer 12 17.65
Tax Payments 12 17.65
Total 68 100
Source: Primary Data
CHART No 4.11
No. of respondents
Balance Enquiry
Mini Statement
Statements of Account
Cheque based enquiry
Funds Transfer
Tax Payments
INFERENCE
From the above table, 17.65 percent of the respondents tried Balance Enquiry,
Account Statement, Funds Transfer and Tax Payments facility offered by the bank.
16.18 percent of the respondents have checked their Mini Statement and the remaining
13.24 percent of the respondents have made Cheque based enquiry using internet
banking service.
52
TABLE No 4.12
DISTRIBUTION OF RESPONDENTS REASON FOR NOT USING INTERNET
BANKING SERVICES:
Reason for not using internet
banking services
Status No. of. Respondents Percentage
Confusing 9 11
Lack of information 13 15.85
Fear of security 50 61
Others 10 12.2
Total 82 100
Source: Primary Data
CHART No 4.12
Confusing
Lack of information
Fear of security
Others
INFERENCE:
From the above table, 61 percent of the respondents did not use this service due
to the fear of security, 15.85 percent of the respondents did not use this service due to
the lack of information about this service, 12.2 percent of the respondents did not use
this service due to some other reasons and for the remaining 11 percent of the
respondents did not use this service due to confusion in the internet banking service.
53
TABLE No 4.13
DISTRIBUTION OF RESPONDENTSACCORDING TO THEIR PURPOSE OF
USINGINTERNET BANKING SERVICES:
Purpose for using internet banking services
Status No. of. Respondents Percentage
Business activity 25 36.8
Electronic Payments 20 29.4
Demat Services 13 19.1
Others 10 14.71
Total 68 100
Source: Primary Data
CHART No 4.13
Business acitivity
Electronic Payments20
Demat Services
Others
INFERENCE
From the above table, 36.8 percent of the respondents used this for business
activity, 29.4 percent of the respondents used this for making electronic payments, 19.1
percent of the respondents used this for Demat Services and 14.71 percent of the
respondents used this for other purposes.
54
TABLE No 4.14
DISTRIBUTION OF RESPONDENTSACCORDING TO THEIR
SATISFACTION LEVEL IN THE INTERNET BANKING SERVICE
Satisfaction in the internet banking services
Status No. of. Respondents Percentage
Highly satisfied 25 37
Satisfied 23 33.8
Neutral 15 22.1
Dis- Satisfied 5 7.4
Highly dis - satisfied 0 0
Total 68 100
Source: Primary Data
CHART No 4.14
INFERENCE:
From the above table, 37 percent of the respondents are highly- satisfied with this
service, 33.8 percent of the respondents are satisfied with this service, 22.1 percent of the
respondents are neutrally satisfied with this service, and 7.4 percent of the respondents
are highly-satisfied with this service. None of the respondents are highly dis-satisfied
with this service.
55
TABLE No 4.15
DISTRIBUTION OF RESPONDENTSACCORDING TO THEIR
SATISFACTION TOWARDS INTERNET BANKING SERVICES:
CHART No 4.15
INFERENCE:
From the above table, 36.8 percent of the respondents are satisfied because of
faster transactions, 26.5 percent of the respondents are satisfied because is Saves time
consumption 22.05 percent of the respondents are satisfied because it is Cheap and best,
14.1 percent of the respondents are satisfied because no need to visit bank often.
56
TABLE No 4.16
DISTRIBUTION OF RESPONDENTS REASON FOR THEIR
DISSATISFACTION TOWARDS INTERNET BANKING SERVICES:
Reason for dis-satisfaction towards internet banking service
Status No. of. Respondents Percentage
Security reasons 85 56.67
Unable to do cash transactions 45 30
Others 20 13.33
Total 150 100
Source: Primary Data
CHART No 4.16
140
120
100
80
No. of. Respondents
60
40
20
0
Security reasons Unable to do cash Others
transactions
INFERENCE:
From the above table, 56.67 percent of the respondents are dis-satisfied for
security reasons, 30percent of the respondents are dis-satisfied as it's unable to do cash
transactions, and 20 percent of the respondents are dis-satisfied for other reasons.
57
TABLE No 4.17
DISTRIBUTION OF RESPONDENTS WITH REFERENCE TO THE
FACILITIES OFFERED BY THE BANK FOR INTERNET BANKING:
Facilities offered for internet banking
Status No. of. Respondents Percentage
Excellent 20 29.4
Very Good 18 26.5
Good 15 22.06
Average 10 14.71
Poor 5 7.4
Total 68 100
Source: Primary Data
CHART No 4.17
50
40
30
No. of. Respondents
20
10
0
Excellent Very Good Good Average Poor
INFERENCE:
From the above table, 29.4 percent of the respondents have rated excellent,
26.5percent of the respondents have rated Very good, 22.06 percent of the respondents
have rated Good, 14.71 percent-of the respondents have rated Average and the
remaining 7.4 percent of the respondents have rated poor for the facilities offered by the
bank for internet banking services.
58
TABLE No 4.18
DISTRIBUTION OF RESPONDENTS AC CORDING TODURATION OF THEIR
USAGE IN INTERNET BANKING SERVICE:
Classification based on the duration of their usage in the internet banking services
Status No. of. Respondents Percentage
Very Frequently 23 33.8
Frequently 17 25
Occasionally 15 22.1
. Rarely 13 19.1
Very Rarely Nil 0
Total 68 100
Source: Primary Data
Very Frequently
Frequently
Occasionally
Rarely
Very Rarely
INFERENCE:
From the above table, 33.8 percent of the respondents use this service very
frequently, 25 percent of the respondents use this service frequently,22.1 percent of the
respondents use this service occasionally, 19.1 percent of the respondents use this
service rarely and none of the respondents use this service very rarely.
59
TABLE No 4.19
DISTRIBUTION OF RESPONDENTS AC CORDING TOFREQUENT USAGE IN
INTERNET BANKING SERVICE:
Classification based on customer usage frequently to internet banking services
Status No. of. Respondents Percentage
Regularly 29 42.6
Once in a while 12 17.6
When I am out-station 13 19.1
Indifferent 14 20.6
Total 68 100
Source: Primary Data
80
70
60
50
40
Series 1
30
20
10
0
Regularly Once in a while When I am out- Indifferent
station
INFERENCE:
From the above table, 42.6 percent of the respondents use this service regularly,
20.6 percent of the respondents use this service indifferent, 19.1 percent of the
respondents use this service when they are out station and 17.6 percent of the
respondents use this service once in a while.
60
TABLE No 4.20
DISTRIBUTION OF RESPONDENTS AC CORDING TO THEIR OPINION IN
INTERNET BANKING SERVICE:
Classification of customer opinion about the internet banking services
Status No. of. Respondents Percentage
Excellent 85 56.7
Good 30 20
Average 18 12
Poor 17 11.3
Total 150 100
Source: Primary Data
CHART No 4.20
Excellent
Good
Average
Poor
INFERENCE:
From the above table, 56.7 percent of the respondent' sopinion is Excellent,
20percent of the respondent's opinion is good, 12 percent of respondent's opinionis
Average and the remaining 11.3 percent of the respondent's opinion is Poor about the
internet banking services provided by Dena bank.
61
STATISTICAL TOOLS
Yes 27 8 5 32 5 77
No 0 17 30 8 18 73
Total 27 25 35 40 23 150
Level of significance: 5%
Degree Of Freedom:
= (c-1) (r-1)
= (5-1) (2-1)
= 4.
62
Working Notes:
Oi Ei (Oi - Ei) (Oi - Ei)2 (Oi - Ei)2
Ei
27 13.9 13.1 171.6 12.3
0 13.1 -13.1 171.6 13.1
8 12.8 -4.8 23.04 1.8
17 12.2 4.8 23.04 1.9
5 18 -13 169 9.4
30 17 13 169 9.9
32 20.5 11.5 132.3 6.5
8 19.5 -11.5 132.3 6.8
5 11.8 -6.8 46.24 3.9
18 11.2 6.8 46.24 4.1
Total 69.7
Table value:
The table value of chi square for degrees of freedom at 5% level is 9.49
Inference:
The calculated value > tabulated value. Therefore Null hypothesis is rejected.
Result:
There is significant difference between the Occupation and the internet
banking usage.
63
4.2.2. Chi-Square Analysis
Aim:
To test the relationship between the facilities provided offered for internet
banking service towards customer gender.
Facilities Very
Excellent Good Average Poor Total
Gender Good
Male 11 8 7 4 0 30
Female 9 10 8 6 6 38
Total 20 18 15 10 5 60
Level of significance: 5%
Degree Of Freedom:
= (c-1) (r-1)
= (5-1) (2-1)
=4
64
Working Notes:
Ei
11 8.8 2.2 4.8 0.6
9 11.2 -2.2 4.8 0.6
8 7.9 0.1 0.01 0.001
10 10.1 -0.1 0.01 0.001
7 6.6 0.4 0.16 0.02
8 8.4 -0.4 0.16 0.02
4 4.4 -0.4 0.16 0.02
6 5.6 0.4 0.16 0.02
0 2.2 -2.2 4.8 0.6
5 2.8 2.2 4.8 0.6
Total 2.482
Table value:
The table value of chi square for degrees of freedom at 5% level is 9.49
Inference:
The calculated value < tabulated value. Therefore Null hypothesis is accepted.
Result:
There is no significant difference between the facilities provided offered for
internet banking service and the customer gender.
65
CHAPTER V
66
SUMMARY AND CONCLUSION
Findings
67
Suggestions:
Though the Internet Banking is an effective tool but many of the customers
are not using it due to the awareness of the particular direct banking channel.
Now the responsibility lies with the bank to make them aware about various
Internet banking channels through publicity and advertisement.
Bank should educate the customer about the usage of internet banking channel
and also about their advantages. This would prompt the customers to shift from
traditional brick and mortar channel.
It has been observed that even the customers who know about internet banking
channel are not using this facility due to misconception and lack of
information. These customers should be targeted by the bank and must be
convinced to use the same.
The result of the study shows that customers are using only few facility of
various internet banking channel. Though e- banking provides a full gamut of
various services. Customer should be made aware of these services and must
be encouraged to use the same.
The bank may improve existing facilities in rural areas through advertising,
spread awareness about computer and net banking.
The best way to motivate the customer to use the e- banking is the most
efficient customer care service.
68
LIMITATION OF THE STUDY:
The study was done in T.Nagar bank and sample size of 150 the credibility of
the project is not assured.
Personal bias and prejudices of the respondents could have affected the result
of the study.
Convenient sampling has been used and hence the samples selected are not true
representation of the universe.
Only certain statistical test could be applied to validate the results of the study.
69
CONCLUSION:
The project commence with fixing the objective then sample were collected
accordingly around 150 samples have been collected from the population in a
structure method and analysis have been done to get the results.
The objectives framed at the beginning of the project have been achieved.
The customers are aware of Dena bank and various types of the services
provided by the bank.
The result of this study shows that perceived usefulness, perceived ease of use,
customer awareness and perceived risk are the important determinants of
internet banking adoption.
These factors have a strong and positive effect on customers to accept internet
banking system.
70
ANNEXURE
71
THE STUDY OF CUSTOMER AWARENESS TOWARDS INTERNET
BANKING SERVICES PROVIDED BY DENA BANK WITH SPECIAL
REFERENCE TO T.NAGAR BRANCH:
QUESTIONNAIRE
Name of Respondent:
Age:
a) Below 20 b) 20-30 c) 30-40 d) 40-50 e) Above 50
Gender:
a) Male b) Female
Occupation:
a) Business b) Government Employed
c) Retired d) Private sector
e) Others (Please specify)
1. Which income group do you belong to (annual)?
A) Less than Rs. 1 Lakh
B) Rs. 1 Lakh to 3 Lakh
C) More than Rs. 3 Lakh
2. How long you have account in Dena bank?
a) Below 1 year b) 1-3 years
c) 3-5 years d) Above 5 years
3. What type of account you have in Dena bank?
a) Savings b) Current c) Cash credit
d) Term deposits e) Others
4. According to you which is more convenient way for banking?
a) Branch banking b) Internet banking
c) Phone banking d) Mobile banking
e) ATM
5. "Banking through the internet is safe and secure". Present your view:
a) Strongly Agree b) Agree c) Can't say
72
6. Are you aware of internet banking services?
a) Yes b) No
7. Have you used this facility?
a) Yes
b) No
8. If "Yes", which transaction you have made?
a) Balance Enquiry b) Mini statement
c) Statement of accounts d) Cheque based enquiry
e) Funds transfer f) Tax payments
9. If "No", then what is the reason for not using internet banking facility?
a) Confusing b) Lack of information
c) Fear of security d) others
10. How long you are using this internet banking facility?
a) Not used b) Less than 1 year
c) 1-2 years d) above 2 years
11. For what purpose you are using internet banking facility?
a) Business activity b) Electronic Payments
c) Demat services d) others
12. How well you are satisfied with the internet banking channel?
a) Highly satisfied b) Satisfied
c) Neutral d) Dis-satisfied
e) Highly dis-satisfied
13. Mention your reason for satisfaction towards the internet banking service?
a) Cheap & best b) Saves time consumption
c) Fast transactions d) No need to visit bank often
14. Mention your reason for dis-satisfaction in the internet banking service?
a) Security reasons b) unable to do cash transactions
c) Others (Please specify) ____________
15. What do you think of the facilities offered by the bank for internet
banking?
a) Excellent b) Very Good c) Good
d) Average e) Poor
73
16. How many times you have used this facility till now?
a) Very Frequently b) Frequently
c) Occasionally d) Rarely
e) Very Rarely
17. How frequently you use internet banking facility?
a) Regularly b) Once in a while
c) When I am out-station d) Indifferent
18. What is your overall opinion about internet banking?
a) Excellent b) Good
c) Average e) Poor
19. Based on your satisfaction level will you recommend this service to your
friends/relatives?
a) Yes b) No
20. Give your suggestion for internet banking:
__________________________________
__________________________________
____________________________________
74
BIBLIOGRAPHY
Philip Kotler Kevin kellerLane prentice - Hall of India P Ltd Edition 2007
C.R Kothari Research Methodology New Age International Publication
Limited Second revised Edition 2006
P.N Arora & S.Arora Static for Management Sultan Chand Publication 3rd
Revised Edition 2006
Websites:
www.denabank.com
www.google.com
75