A Study on Net Banking services provided by HDFC Bank.

Introduction to the Bank

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.

Introduction to the Project

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.

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. Net banking means application of electronic technology towards transfer of funds through an electronic terminal, computer or magnetic tape to conduct various transactions like cash receipts, payments, transfer of funds, etc. It is often known as banking on net or e banking.

Net Banking service at HDFC Bank

Net banking is HDFC Bank's Internet Banking service. It provides up-to-the-second account information. Net banking lets the customer manage his/her account from the comfort of his/her mouse - anytime, anywhere. Net Banking services provides access to account information, products and other services (including transactions of non-financial and financial in nature) as advised by the Bank from time to time to the customers through the website of the Bank. Net Banking Services also include the services for Demat account, Credit Cards and loan on the website of the Bank

Review of Literature
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.

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.

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.

Singh & Malhotra (2004)

They 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.

Laukkanen & Tommi (2007)

In their research aim to compare customer perceived value and value creation between internet and mobile bill paying service. A qualitative in-depth interviewing design is 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

Need, Scope and Objectives of the study

NEED OF THE STUDY

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 handled to the present research being undertaken

Scope of the Study

The area where the study has been conducted is Jalandhar.

Objectives of the study

The current study was undertaken to achieve the following stated objectives: 1.To analyze awareness among customers using Net banking service .2.To know about the Net Banking service provided by HDFC Bank. 3.To know the cause why customers are using or not using Net banking service. 4.To the confidence of the customers of HDFC Bank in using these services.

Research Methodology

Research is a common parlance which refers to search for knowledge. It is a procedure of logical and systematic application of the fundamentals of science to the general and overall questions of a study and scientific technique, which provide precise tools, specific procedures, and technical rather philosophical means for getting and ordering the data prior to their logical analysis and manipulating different type of research designs is available depending upon the nature of research project, availability of manpower and circumstances

Research design

A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. In fact, the research design is the conceptual structure within which research is conducted. This research is descriptive in nature.

Sampling design
The following factors have been decided within the scope of sample design:

Universe of study: Universe of the study means all the persons who are the customers of HDFC Bank in the world. Sample Size A sample of minimum respondents was selected from various areas of Jalandhar. An effort is made to select respondents evenly. The survey is carried out on 100 respondents. Sample Unit In this project sampling unit consisted of the various individuals who have their bank accounts with HDFC Bank.

Sampling Technique:
For the purpose of research convenient sampling technique is used.

Sampling Frame:
It consisted of various sources from where information about the respondent is extracted. Mainly personal links and employees of HDFC Bank, Jalandhar are used for getting information about the respondents

Data collection and analysis

There are two types of data sources used in this research. These are

DATA COLLECTION

Secondary data Secondary data is the data collected from already been use or published information like journals, diaries, books, etc .In this research project, secondary source used were various journals, and website of various online journals. Primary data Primary data is the data collected for the first time from the source and never have been used earlier. The data can be collected through interviews, observations and questionnaires. In this project, an appropriate questionnaire was designed which was filled by the customers of HDFC Bank to know their opinions regarding the Net Banking service provided by HDFC Bank.

Data analysis
Tools of Presentation

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 are used for presenting the data
Tools Of Analysis

In this research the tools of analysis used are percentages. SPSS software is used to conduct Friedman ANOVA, Reliability analysis and Factor Analysis.

LIMITATIONS OF THE STUDY

1. Non representative sample:
In this research project a sample survey is conducted. A sample of 100 respondents is selected. So such sample size cannot be said to be the true representative of the universe.

2. Shortage of time :
The time period of study is 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. The data provided is not up to the mark due to which we faced problems in our research. The lack of scientific training in methodology of research is great impediment in our research program, which led to the delay of research. The answers provided by the respondents suffer from biasness.

3. Inadequate data:

4. Lack of scientific method:

5 Biasness in the responses:

Data analysis and interpretation

STATEMENT 1: Perception about savings account of consumer in HDFC bank?

Number of PERCEPTION respondents

% of respondents

YES

65 35 100

65% 35% 100%

NO Analysis and interpretation: From the data collected, it can TOTAL be that the majority of respondendents that is 65% are using savings account of HDFC bank and rest are not using this service of HDFC bank.

Statement 2: Since how long the customers are availing net banking facility? Analysis and interpretation: From the data collected, it can be interpret that maximum number of respondents that is 35% are availing net banking facility from less than 6 months.

Time period

No of respondents 35 30

% of respondents 35% 30% 20% 15%

Less than 6 months 1-3 years More than 3 years

20 15

Statement 3: Satisfaction of customers regarding HDFC?

Perception Number of respondents YES 80 20 100

% of respondents 80% 20% 100%

Analysis and interpretation: From the data collected , it NO Can be interpreted that maximum Total Number of respondents that is 80% are satisfied with the net banking facility of HDFC bank..

Statement 4: Facilities provided by HDFC bank ?

Facilities

Number of % of respondents respondents 10 10 15 5 60 10% 10% 15% 5% 60%

Analysis and Interpretation: Phone From the data collected, it can be banking interpreted that maximum number of respondents use maximum ATM facility that is 60% are availing this facility and less number of respondents are aware of EFT

ATM

Statement 5: Reason due to which costumers avail NET banking facility Analysis and interpretation: From the data collected it can be interpret that maximum number of respondents avail facilities of HDFC because it can use anywhere at any time and saves time.

Reason

Number of respondents 32

% of respondents 32%

Because it saves time Because it is safe and secure

20

20%

Because it can 30 use anywhere Because I 18 dont have time to go to bank

30%

18%

Findings of the study

1. 2.

3.
4. 5. 6.

The majority of the respondents have been used savings account in HDFC bank The majority of the respondents have been availed net banking facility for last 6 months The majority of the respondents are satisfied with net banking facility The majority of the respondents heard about net banking facility from magazines and internet. The maximum number of respondents use net banking facility because it is safe and saves time. The maximum number of respondents use maximum ATM facility of HDFC bank

CONCLUSION
At the end it is to be concluded that HDFC bank provides Net banking facility to its costumers which help them by saves their time and it is safe and secure and provides up to date information at any time and anywhere but the main limitation is that many costumers are not aware about the other facilities of the bank.