Customer Response Towards E-Banking: K.L.E.Society'S S.Nijalingappa College

CUSTOMER RESPONSE TOWARDS E-BANKING
CHAPTER 1 INTRODUCTION
K.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE

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GENERAL INTRODUCTION
The word bank is derived from the Italian banca, which is derived from German language and means bench. The terms bankrupt and broke are similarly derived from banca rotta, this refers to an out of business bank, having its bench physically broken. Money lenders in Northern Italy originally did business in open areas, or big open rooms, with each lender working from his own bench or table. Traditionally, a bank generates profits from transaction fees on financial services and from the interest it changes for lending. In recent history, with historically low interest rates limiting banks ability to earn money by lending deposited funds, much of a banks income is provided by overdraft fees and riskier investments. ELECTRONIC BANKING: It is an electronic banking which includes Internet Banking, Electronic Fund Transfer, and Automated Teller Machine (ATM). The transactions like Cheque book issuing, Bills payments, Fund transfer, Demand Draft, Balance Statement, Online ticket reservations can be carried out by using E-Banking. Form of banking where funds are transferred through an exchange of electronic signals between financial institutions, rather than an exchange of cash, checks, or other negotiable instruments. The ownership of funds and transfers of funds between financial institutions are recorded on computer systems connected by K.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE
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CUSTOMER RESPONSE TOWARDS E-BANKING telephone lines. Customer identification is by access code, such as a password or Personal Identification Number instead of a signature on a check or other physical document. Electronic banking systems can be low-dollar retail payment systems, such as Automated Teller Machine networks and point-of-sale systems; and large-dollar interbank payment systems, such as the Federal Reserve Fed Wire or the Clearing House Interbank Payments System operated by the New York Clearing House Association Market Is any place where the sellers of a particular good or service can meet with the buyers of that goods and service where there is a potential for a transaction to take place. The buyers must have something they can offer in exchange for there to be a potential transaction. Marketing Is the process by which companies advertise products or services to potential customers? It is an integrated process through which companies create value for customers and build strong customer relationships in order to capture value from customers in return. Process by which individuals and groups obtain what they need and want through creating and exchanging products exchanging products and value with others. More simply: Marketing is the delivery of customer satisfaction at a profit The all-embracing function that links the business with customer needs and wants in order to get the right product to the right place at the right time K.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE
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The achievement of corporate goals through meeting and exceeding customer needs better than the competition
The management process that identifies, anticipates and supplies customer requirements efficiently and profitably Marketing Management Is a business discipline which is focused on the practical application of marketing techniques and the management of a firm's marketing resources and activities. Rapidly emerging forces of globalization have compelled firms to market beyond the borders of their home country making International Marketing highly significant and an integral part of a firm's marketing strategy.
THEORETICAL BACKGROUND E-banking- The execution of financial services via internet, reducing cost and increase in convenience for the customer to access the transaction. E- Banking is an umbrella term for the process by which a customer may perform banking transactions electronically without visiting a brick-and-mortar institution. The following terms all refer to one form or another of electronic banking: personal computer (PC) banking, Internet banking, virtual banking, online banking, home banking, remote electronic banking, and phone banking. PC banking and Internet or online banking is the most frequently used designations. It should be noted,

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CUSTOMER RESPONSE TOWARDS E-BANKING however, that the terms used to describe the various types of electronic banking are often used interchangeably. The ever increasing speed of internet enabled phones & personal assistant, made the transformation of banking application to mobile devices, this creative a new subset of electronic banking i.e. mobile banking. In 1999 & 2000 mobile banking as an established channels, still seems to be a distant prospect. Banks also enables customers lifestyle needs by changing and increasing preference for speed and convenience are eroding the traditional affinity between customer and branch offices as a new technology disinter mediates traditional channels, delivering the value proposition hinges on owing or earning the customer interface and bringing the customer a complete solution which satisfies their needs. Smart card is a new trend which provides the opportunity to build an incremental revenue stream by providing an ideal platform for extended application and services. Banks are well positioned to play central role unit in future M-commerce market. Banks have strong relationships with corporate and business customers and a wide experience in providing them with corporate banking services. Bank provides a multimedia of small and large retailers with acquiring functionality in credit card transactions. Customers have trusted relationships with banks and a lower propensity to switch banking providers. THE ROLE OF E-CHANNELS IN THE BANKING SECTOR Electronic banking (e-banking) is the newest delivery channel of banking services. The definition of e-banking varies amongst researches partially because electronic banking refers to several types of services through which a banks customers can request information and carry out most retail banking services via computer,

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CUSTOMER RESPONSE TOWARDS E-BANKING television or mobile phone (Daniel, 1999; Mols,1998; Sathye, 1999). Burr, 1996, for example, describes it as an electronic connection between the bank and customer in order to prepare, manage and control financial transactions. Electronic banking can also be defined as a variety of the following platforms: a) Internet banking (or online banking) b) Telephone banking, c) TV-based banking d) Mobile phone banking, and e) PC banking (or offline banking). In this paper, the ATM (Automated Teller Machine) channel is also added to the research. TYPES OF E-BANKING The common assumption is that Internet banking is the only method of on-line banking. However, this is not strictly the case, as several types of service are currently available: INTERNET BANKING - Using a Web browser, a user can access their account, once the bank's application server has validated the user's identity. MOBILE BANKING- A mobile user has to be seen from his context when using the application. Needs and expectations are not generic, but bound to this context. As a typical mobile banking user, we consider someone who already is an electronic banking user shows significant affinity to technology and often finds

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CUSTOMER RESPONSE TOWARDS E-BANKING himself in situations where he cannot (or does not want to) rely an infrastructure necessary for electronic banking.
SMS-BANKING- The Short Message Service (SMS) is a GSM service to exchange text messages up to 140 byte (or 160 characters of 7 bit). The transmission of mobile-originated short messages is carried out by the short message service center (SMSC) of the particular network operator. Telephone Banking - HSBC have introduced this service to allow customers with text phones to check their balance, pay bills and transfer money. FEATURES OF E-BANKING E-Banking provide exceptional rates on Savings, CDs, and IRA Checking with no monthly fee, free bill payment and rebates on credit cards with low rates Easy online applications for all accounts, including personal loans 24 hour account access It provides Quality customer service with personal attention It provides the quick services to their customers. Enables transfer of funds from one place to another(banks). Exchange of statistical information amongst banks. Enables foreign exchange operations. K.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE
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ATM surcharges
and mortgages
banking.
Inter-bank applications like settlement of funds between banks. Provides facilities like demat operation, ATM operation, online
Advantages of Internet Banking Refers to conducting banking transactions through internet they are, Opening & closing of accounts. Make the payments of merchandise transaction through Debit & Credit cards. It gives reliefs to their customer from carrying heavy cash. Enables prompt & speedy operation to clients. It saves lot of time to their customers &convenient to access. Disadvantages of Internet Banking Customer may have to face risky transaction & fraud. Failure of power supply cause to break down of system. Loss of heavy income at times of settlement of higher magnitude. Cost involved in training staff may not be profitable specially in times of attrition. Development of an attitude of lethargy

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CHAPTER 2 EXECUTIVE SUMMARY

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Executive Summary E-banking- The execution of financial services via internet reducing cost and increase in convenience for the customer to access the transaction. E-banking is an umbrella term for the process by which a customer may perform banking transactions electronically without visiting a brick-and-mortar institution. The following terms all refer to one form or another of electronic banking: personal computer (PC) banking, Internet banking, virtual banking, online banking, home banking, remote electronic banking, and phone banking. PC banking and Internet or online banking are the most frequently used designations. It should be noted, however, that the terms used to describe the various types of electronic banking are often. The ever increasing speed of internet enabled phones & personal assistant, made the transformation of banking application to mobile devices, this creative a new subset of electronic banking i.e. mobile banking. In 1999 & 2000 mobile banking as an established channels, still seems to be a distant prospect. The internet is revolutionizing the way the financial industry conducts business online, has created new players who offer personalize services through the web portals. This increase to find new ways and increase customer loyalty to add the value to this product and services. Banks also enables customers lifestyle needs by changing and increasing preference for speed and convenience are eroding the traditional affinity between K.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE
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CUSTOMER RESPONSE TOWARDS E-BANKING customer and branch offices as a new technology disinter mediates traditional channels, delivering the value proposition hinges on owing or earning the customer interface and bringing the customer a complete solution which satisfies their needs. Smart card is a new trend which provides the opportunity to build an incremental revenue stream by providing an ideal platform for extended application and services. Banks are well positioned to play central role unit in future M-commerce market. Banks have strong relationships with corporate and business customers and a wide experience in providing them with corporate banking services. Bank provides a multimedia of small and large retailers with acquiring functionality in credit card transactions. Customers have trusted relationships with banks and a lower propensity to switch banking providers.

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CHAPTER 3 RESEARCH METHODOLOGY
RESEARCH METHODOLOGY: K.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE

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CUSTOMER RESPONSE TOWARDS E-BANKING The data obtained from the Primary Sources is classified and tabulated. Analysis is made of the data collected by conducting the interview of the customers along with the questionnaire and inferences are drawn based on the analysis. Research It must be systematic and follow a series of steps and a rigid standard protocol. These rules are broadly similar but may vary slightly between the different fields of science. Research methodology Research is a diligent and systematic inquiry or investigation into a subject in order to discover or revise facts, theories, applications, etc.Methodology is a system of methods followed by particular discipline, Thus, Research methodology is the way how we conduct our research. Research Design A plan outlining how information is to be gathered for an assessment or evaluation that includes identifying the data gathering method(s), the instruments to be used/created, how the instruments will be administered, and how the information will be organized and analyzed.
Steps of Research design K.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE

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CUSTOMER RESPONSE TOWARDS E-BANKING Define the Research Problem Estimate the Value of the Information Select the Data Collection Approach Select the Measurement Technique Select the Sample Select the Model of Analysis Evaluate the Ethics of the Research Estimate Time and Financial Requirements Prepare the Research Proposal Sample The finite collection of observations one actually does have from the population. The sample is a small part of the population. Sampling In statistics, the analyses of a group by determining the characteristics of significant percentage of its members chosen at random. Method of sampling The process of selection of sample is described as follows 1) Population: Individual wishing to avail Electronic Banking benefit. 2) Sample frame: Individual wishing to avail Electronic Banking benefit in Bangalore city. 3) Sample unit: Individuals. 4) 5) Sample size: 50. Sample method: Convenience sampling method

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CUSTOMER RESPONSE TOWARDS E-BANKING SOURCES OF DATA Primary data Secondary data
Primary data The primary data are those which are collected a fresh and for the first time and thus happen to be original in character. The primary data is being collected for the purpose of studying the topic for the project and identifying the issues involved. There are several methods of collecting primary data, particularly in survey and descriptive researches. Some important methods of collecting primary data are: Observation Method or convenience sampling method Structured Questionnaire. Personal interview
Convenience sampling Sampling method where the items that are most conveniently available are selected as part of the sample. It is not appropriate to apply statistical analysis to samples selected in this manner. Structured Questionnaire A questionnaire used in large surveys where specific answers are anticipated. They include the use of multiple choice and scale questions. K.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE
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CUSTOMER RESPONSE TOWARDS E-BANKING Personal interview A direct face to face conversation between a representative of the research organization (the interviewer) and a respondent or interviewee. Secondary data Data collected and recorded by another (usually earlier) person or organization, usually for different purposes than the current evaluation. The secondary data is collected trough Research books, past records, banks and web sites. OBJECTIVES OF STUDY To know the awareness level and the benefits of E-Banking To know the usage level of E-Banking To know the steps taken to promote E-Banking To know the response of the customers towards E-Banking To know the majority of the respondents are suggests their opinion in electronic banking, they got more benefits in the form of Time saving and they got less benefits from others. To know the respondents use Internet Banking weekly and monthly, for their transactions.

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CUSTOMER RESPONSE TOWARDS E-BANKING SCOPE OF THE STUDY Customers account is extremely accesses able with an online account. Customer can withdraw can at any time through ATMs that are now widely available throughout the country. Beside withdrawing cash customers can also have mini banks statements, balance inquiry at these ATMs NEED FOR THE STUDY CUSTOMER PERCEPTION TOWARDS E-BANKING Electronic banking is becoming is increasingly becoming popular because of convenience and flexibility. The present paper explores the major factors responsible for Electronic banking based on respondents perception on various internet applications. It also provides a framework of the factors which are taken to assess the Electronic banking perception.
BENEFITS OF E-BANKING TO CUSTOMERS Customers account is extremely accesses able with an online account. Customer can withdraw can at any time through ATMs that are now widely available throughout the country.

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CUSTOMER RESPONSE TOWARDS E-BANKING LIMITATIONS OF STUDY

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The study was conducted in the STATE BANK INDIA branch Kumar swami layout.
2. The sample size is limited to 50 customers. 3. The primary data obtained is assumed to be true and may be bias after some time. STATEMENT OF PROBLEM: The purpose of the study is to find out The Customers response towards EBanking of STATE BANK INDIA. Hence the study has been entitled as a Customer response towards Electronic Banking initiative from STATE BANK INDIA. In conducting the study prominent number of customer have been interviewed through a structured questionnaire. The study was conducted over a period of four months and the information gathered as per the requirement of the bank. The information was tabulated and then the validity of data was checked and analyzed. Topic of study A STUDY CUSTOMER RESPONSE TOWARDS
ELECTRONIC-BANKING INITIATIVE FROM STATE BANK INDIA

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CHAPTER 4 INDUSTRY PROFILE

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CUSTOMER RESPONSE TOWARDS E-BANKING INDUSTRY BACKGROUND INTRODUCTION OF BANK The word bank is derived from the Italian banca, which is derived from German language and means bench. The terms bankrupt and broke are similarly derived from banca rotta, which refers to an out-of-business bank, having its bench physically broken. Money lenders in Northern Italy originally did business in open areas, or big open rooms, with each lender working from his own bench or table. Traditionally, a bank generates profits from transaction fees on financial services and from the interest it charges for lending. In recent history, with historically low interest rates limiting banks ability to earn money by lending deposited funds, much of a bank's income is provided by overdraft fees and riskier investments. Currently the term bank is generally understood as an institution that holds a banking license. Banking licenses are granted by bank regulatory authorities and provide rights to conduct the most fundamental banking services such as accepting deposits and making loans. There are also financial institutions that provide certain banking services without meeting the legal definition of a bank, also called nonbanking financial company.

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CUSTOMER RESPONSE TOWARDS E-BANKING A bank raises funds by attracting deposits, borrowing money in the inter-bank market, or issuing financial instruments in the money market or a capital market. The bank then lends out most of these funds to barrowers. However, it would not be prudent for a bank to lend out all of its balance sheet. It must keep a certain proportion of its funds in reserve so that it can repay depositors who withdraw their deposits. Bank reserves are typically kept in the form of a deposit with a central bank. This behavior is called fractional-reserve banking and it is a central issue of monetary policy. Some governments (or their central banks) restrict the proportion of a bank's balance sheet that can be lent out, and use this as a tool for controlling the money supply. Even where the reserve ratio is not controlled by the government, a minimum figure will still be set by regulatory authorities as part of bank regulation. Banks are susceptible to many forms of risk which have triggered occasional systemic crises. Risks include liquidity risk (the risk that many depositors will request withdrawals beyond available funds), credit risk (the risk that those that owe money to the bank will not repay), and interest rate risk (the risk that the bank will become unprofitable if rising interest rates force it to pay relatively more on its deposits than it receives on its loans), among others.

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CUSTOMER RESPONSE TOWARDS E-BANKING Banking crises have developed many times throughout history when one or more risks materialize for a banking sector as a whole. Prominent examples include the U.S. Savings and Loan crisis in 1980s and early 1990s, the Japanese banking crisis during the 1990s, and the bank run that occurred during the Great Depression, and the recent liquidation by the central Bank of Nigeria, where about 25 banks were liquidated. HISTORY OF BANKING IN INDIA The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below:

Early phase from 1786 to 1969 of Indian Banks Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms. New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991.
To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase III. Phase I The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units

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and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders.
In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. During those days public has lesser confidence in the banks. As an aftermath deposit mobilization was slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Moreover, funds were largely given to traders.

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Phase II Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country. Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th July, 1969, major process of nationalizations was carried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country were nationalized. Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking segment in India under Government ownership. The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country:

1949: Enactment of Banking Regulation Act. 1955: Nationalization of State Bank of India. 1959: Nationalization of SBI subsidiaries. 1961: Insurance cover extended to deposits. 1969: Nationalization of 14 major banks. 1971: Creation of credit guarantee corporation. 1975: Creation of regional rural banks.
1980: Nationalization of seven banks with deposits over 200 crore. K.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE
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CUSTOMER RESPONSE TOWARDS E-BANKING After the nationalization of banks, the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11,000%. Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions. Phase III This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalizations of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money. The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure.

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CUSTOMER RESPONSE TOWARDS E-BANKING COMMERCIAL BANKS Commercial Banks are the heart of our financial system. They hold the deposit of millions of persons, governments and business units. They make funds available through their lending and in vesting activities to borrowers- individuals, business firms and governments. The main functions of the commercial banks are:Primary Functions Acceptance of Deposits Lending of Loans Acceptance of deposits from the public is very important for the banks as it forms the basis of all other activities of the banks. The banks accept various types of deposits. They are Current or Demand Deposits Savings Bank Deposits Fixed Deposits Recurring Deposits. Lending of funds on interest is the most important function of commercial banks as it fetches the major part of income to the banks. Commercial banks lend loans by way of: Loans Overdrafts K.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE
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CUSTOMER RESPONSE TOWARDS E-BANKING Cash Credits Discounting of bills Venture capital. Secondary functions Secondary functions of the banks are of two types Agency services Miscellaneous or general utility services. Agency services rendered by banks as agents of their customers are called agency services. They are: Payment of Rent, Insurance Premium etc Collection of cheques Dealing in foreign exchange Acting as Trustees. Miscellaneous services rendered by banks to their customers as well as the general publics are called general utility services. They are: Safe custody Deposits Safe custody deposits locker facilities Transfer if money Issue of travelers cheque Acting as referees Merchant banking Executors and trustee Gift cheques and K.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE
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CUSTOMER RESPONSE TOWARDS E-BANKING Credit Cards Underwriting shares and debentures issued by companies.
ABOUT THE ORGANIZATION The evolution of State Bank of India can be traced back to the first decade of the 19th century. It began with the establishment of the Bank of Calcutta in Calcutta, on 2 June 1806. The bank was redesigned as the Bank of Bengal, three years later, on 2 January 1809. It was the first ever joint-stock bank of the British India, established under the sponsorship of the Government of Bengal. Subsequently, the Bank of Bombay (established on 15 April 1840) and the Bank of Madras (established on 1 July 1843) followed the Bank of Bengal. These three banks dominated the modern banking scenario in India, until when they were amalgamated to form the Imperial Bank of India; on 27 January 1921.An important turning point in the history of State Bank of India is the launch of the first Five Year Plan of independent India, in 1951. The Plan aimed at serving the Indian economy in general and the rural sector of the country, in particular. Until the Plan, the commercial banks of the country, including the Imperial Bank of India, confined their services to the urban sector. Moreover, they were not equipped to respond to the growing needs of the economic revival taking shape in the rural areas of the country. Therefore, in order to serve the economy as a whole and rural sector in particular, the All India Rural Credit Survey Committee recommended the formation of a state-partnered and state-sponsored bank. The All India Rural Credit Survey Committee proposed the take over of the Imperial Bank of India, and integrating with it, the former state-owned or stateK.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE
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CUSTOMER RESPONSE TOWARDS E-BANKING associate banks. Subsequently, an Act was passed in the Parliament of India in May 1955. As a result, the State Bank of India (SBI) was established on 1 July 1955. This resulted in making the State Bank of India more powerful, because as
much as a quarter of the resources of the Indian banking system were controlled directly by the State. Later on, the State Bank of India (Subsidiary Banks) Act was passed in 1959. The Act enabled the State Bank of India to make the eight former State-associated banks as its subsidiaries. State Bank of India emerged as a pacesetter, with its operations carried out by the 480 offices comprising branches, sub offices and three Local Head Offices, inherited from the Imperial Bank. Instead of serving as mere repositories of the community's savings and lending to creditworthy parties, the State Bank of India catered to the needs of the customers, by banking purposefully. The bank served the heterogeneous financial needs of the planned economic development. State Bank of India is the nation's largest and oldest bank. Tracing its roots back some 200 years to the British East India Company (and initially established as the Bank of Calcutta in 1806), the bank operates more than 15,000 branches within India, where it also owns majority stakes in six associate banks. State Bank of India (SBI) has more than 80 offices in nearly 35 other countries, including multiple locations in the US, Canada, and Nigeria. The bank has other units devoted to capital markets, fund management, factoring and commercial services, credit cards, and brokerage services. The Reserve Bank of India owns about 60% of State Bank of India. The All India Rural Credit Survey Committee proposed the take over of the Imperial Bank of India, and integrating with it, the former state-owned or stateK.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE
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CUSTOMER RESPONSE TOWARDS E-BANKING associate banks. Subsequently, an Act was passed in the Parliament of India in May 1955. As a result, the State Bank of India (SBI) was established on 1 July 1955. This resulted in making the State Bank of India more powerful, because as
much as a quarter of the resources of the Indian banking system were controlled directly by the State. Later on, the State Bank of India (Subsidiary Banks) Act was passed in 1959. The Act enabled the State Bank of India to make the eight former State-associated banks as its subsidiaries. The State Bank of India emerged as a pacesetter, with its operations carried out by the 480 offices comprising branches, sub offices and three Local Head Offices, inherited from the Imperial Bank. Instead of serving as mere repositories of the community's savings and lending to creditworthy parties, the State Bank of India catered to the needs of the customers, by banking purposefully. The bank served the heterogeneous financial needs of the planned economic development. BRANCHES: The corporate center of SBI is located in Mumbai. In order to cater to different functions, there are several other establishments in and outside Mumbai, apart from the corporate center. The bank boasts of having as many as 14 local head offices and 57 Zonal Offices, located at major cities throughout India. It is recorded that SBI has about 10000 branches, well networked to cater to its customers throughout India. State Bank of India branches span the country with a vast network to reach out to as many customers as possible making full contribution to the status of India's K.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE
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CUSTOMER RESPONSE TOWARDS E-BANKING largest bank for SBI. Each SBI branch is provided an identification code that is unique to each branch. The SBI bank branches are categorized according to the banking services they provide. These include SBI Core Banking Branch, Domestic Forex Branch, Internet Banking, and Personal Banking (Real Time Gross Settlement) Branches. State Bank of India being the largest bank provides specialized banking services in accordance with the special requirements of a particular community or area. The SBI branch type thereby depends on the special banking services it aims to provide. These include agricultural business and development branches, commercial retail branches, corporate accounts and mid corporate group branches, main branch, industrial finance branch, NRI banking branch, overseas branches, personal banking branch, rehabilitation & recovery branch, SSI and SIB branch, service branches and more.

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BOARD OF DIRECTORS Sl. No 1 2 3 4 5 6 7 8 9 10 11 12 Name Mr. O P Bhatt Prof.Md. Salahuddin Ansari Dr.(Mrs.)Vasantha Bharucha Dr.Ashok Jhunjhunwala Mrs.Shyamala Gopinath Dr .Deva Nand Balodhi Mr.S Venkatachalam Mr. D Sundaram Dr. Rajiv Kumar Mr. Dileep C Choksi Mr.S K Bhattacharyya Mr. R Sridharan Designation Chairman / Chair Person Director Director Director Director Director Director Director Director Director Managing Director Managing Director

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CUSTOMER RESPONSE TOWARDS E-BANKING NATURE OF BUSINESS INTRODUCTION OF E-BANKING Internet has touched almost all aspects of our lives. The emergence of e-commerce has revolutionized the way we live, shop, entertain and interact. Therefore, it should not come as a surprise if it tries to influence the way we save. Today, when the customer is king and the service providers are rushing to pay obeisance to the king, financial service providers cannot be left behind. In their quest to differentiate their services and gain competitive advantage over their competitors, the financial service providers are trying to provide their services to the customers in the comfort of their homes. The Internet has emerged as a convenient channel for these service providers. Living in India, we might find these ideas too far fetched but the truth is that Internet has changed the way these services are delivered, particularly in countries where the Internet penetration is high. The different ways in which Internet is trying to revolutionize the delivery of the financial services and products are given below: 1. Internet Banking 2. Electronic Bills Payment 3. Online Brokerage 4. Online Delivery of Financial Products like Mortgages.

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CUSTOMER RESPONSE TOWARDS E-BANKING CHALLENGES One of the challenges before a Bank, which is trying to become e - enabled is that the data is scattered across the countries. Integration of this data is necessary if the banks have to succeed on the net. The second challenge is related to the move towards expanding the basket of financial products being offered by Financial Service providers. In developed countries, Financial Service providers are using the Internet as a media for expanding into new products. Banks are getting into Mutual funds and vice-versa. However, in India, archaic regulations do not allow companies to have a close relationship with the Banks owned by them or to offer products, which are offered by another category of service providers. As a result, companies like SBI are forced to keep their Banking arms separate from the main company. They are also prevented from offering products, which fall under the purview of Banks. This is a serious impediment for innovation in the financial service sector. Moreover, it prevents Indian Financial Service Providers from exploiting the power of the web. Given these challenges, only a Bank (or Financial Service provider) which moves fast and tries to capture the first mover advantage can think of succeeding in this sector. Another Key Success Factor will be the Value, which the online operations of the Banks will be offering to the consumer. This is what will differentiate between similar offerings from many providers of financial products and services. Starting now, will give the organization an advantage in terms of the networking it will be able to achieve. This will help it in meeting the first challenge. Banks (or Financial Service providers) should be ready to launch their operations within days

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CUSTOMER RESPONSE TOWARDS E-BANKING of the liberalization of the sector. This will allow them to reach a critical mass and establish themselves in the e-World. SERVICES OFFERED
Online Services Experience a shopping extravaganza exclusive to SBI customers. Bring home an amazing array of products ranging from apparels, Consumer Electronics, Jewellery, Home Appliances and so much more! But thats not all; these products are also available to you at never-before prices.
WOW Shopping!
No more hassles of personally visiting the Biller to pay the bills. Pay your bills for Utility Companies (Electricity and Telephone), STATE BANK OF INDIA.

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CUSTOMER RESPONSE TOWARDS E-BANKING Credit Card, Mobile bills, Insurance Premiums and lot more. Avail our free bill payment services through your Internet Banking Account. Why be in line, when you can be ONLINE? Shopping at your fingertips State Bank of India facilitates you to buy variety of products online from more than 75 shopping websites. Payment can be made conveniently using your SBI Account. Visit our partner websites, choose your product and pay using Internet Banking Facility.
Tie-up with all major shopping sites
With STATE BANK OF INDIA you need not visit Train/ Air ticket booking reservation centers any more. You can now buy your tickets online and pay using our Internet Banking Facility. You can book your Railway Tickets on IRCTC and air tickets on Air Deccan. K.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE
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CUSTOMER RESPONSE TOWARDS E-BANKING Corporate e-banking E-banking for corporate of all sizes Omikron and the Communications Group offer electronic banking solutions for corporate of all sizes, all with standard features such as:

Multi-bank-ability and Multi-format support
Enabling a direct access to account-holding banks, domestic as well as abroad. Multi Cash is "the" system for electronic banking, which provides corporates with a reliable way of remote utilization of the complete range of daily bank products and services. Multi Cash is especially expedient as an organizational solution in case of servicing a large number of partners, branches, representation offices or other subordinate economic units. The system secures an efficient cash flow management with guaranteed security and confidentiality. Multi Cash enables you to perform by PC directly from your office, twenty-four hours a day, most regular bank operations: Receiving information about the balance and credit/debit turnover on your local currency and foreign currency accounts with all Multi Cash supporting financial institutions Payment orders in local currency and foreign currency, fully compliant with local legislation. Requests for prompt collection in local currency Confirmation of

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CUSTOMER RESPONSE TOWARDS E-BANKING transactions for purchase/sale of currency Automated initiation of multiple payments, for example payments to the regulatory/state institutions Automated generation of telex messages to customs houses in case of payment orders placed in its favor Opening, transformation and closing of current accounts and deposits Reports with variable text, headings as per user requirements.
Corporate Internet Banking Corporate Internet Banking (CIB) facilitates banking from your desk. At the click of a mouse you can access your accounts at SBI Bank and also keep track of your accounts at our various branches in India. Corporate Internet Banking features and benefits Account Information: Real time balance information and summary of days transaction. Fund Transfers: Manage your Supply-Chain network, effectively by using our Corporate Internet Banking fund transfer mechanism. You can affect fund transfer on a real time basis across the bank locations in India. Request: Make a banking request online.

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CUSTOMER RESPONSE TOWARDS E-BANKING ACCOUNT INFORMATION: The complete database that the bank has about your company is available to you at your terminal. It provides you: Current balance in your account on real-time basis Days transactions in the account Details of cash credit limit, drawing power, amount utilized, etc. Downloading of account statements as an excel or text file. The statements can be integrated with your ERP system for auto-reconciliation. FUND TRANSFERS: Manage your Supply-Chain network, effectively by using our Corporate Internet Banking online fund transfer mechanism. You can affect fund transfer on a real time basis across the bank locations in India. The product facilitates: One-to-one fund transfer between two linked accounts across the bank locations in India. Bulk fund transfers. In bulk fund transfers, you upload a flat file containing payment/collection information. Our systems take care of processing the entire file and once the file is processed you can integrate the processed file to your ERP for auto reconciliation. The real life situation of user-wise limits and multilevel signatories can be mapped in the net-based fund transfer module too. You can specify user-wise cap for funds transfer and the number of approvals needed for each fund transfer. The fund transfer will not take place unless the required number of signatories has approved it. With a Power of Attorney from your dealers, you can link the dealers accounts to your account in order to have an online fund transfer, saving you time and money involved with cheque collection systems.

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CUSTOMER RESPONSE TOWARDS E-BANKING Alternatively, the dealer can credit your account through this channel. Similarly, you could also affect vendor and other payments online. Request: Corporate Internet Banking allows the client to make following requests online:
Registrations for account statements by email either daily/weekly/fortnightly/monthly basis.
Stop payment of cheque. Cheque book replenishment.

Opening of fixed deposit account. Opening of Letter of credit.
With your business on the rise you have to get more from your accounts team. Simplify bulk pay outs or payments, optimize performance and reduce workload with SBI Bank's Electronic Funds Transfer (EFT) and Special Electronic Funds Transfer (SEFT). Transfer funds from one location to another in no time. No more making, signing and dispatching cheques. Benefit from quick and easy bulk salary uploads vendor payments, etc.

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Key features include: 1. Transactions with other banks Go electronic and conduct all your business transactions through your RCA. Make and receive payments to/from banks other than SBI Bank through EFT. 2. Reduced transaction time Get the advantage of drastically reduced cheque clearance time. SEFT clears funds the same day while EFT takes three working days. Pay vendors and collect from dealers quickly and efficiently. 3. Bulk uploads. Your accountant can do a bulk upload of salaries, payments and save time.
For better cash flows you have to stay in control of your account. SBI Banks Mobile Banking frees you of all the hassles of physical banking and keeps you updated through your mobile. Know your account balance; get alerts and reminders at the right moment and more.

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4. SMS alerts:
You dont have to call or ask for your account details. Know the moment your account is credited or debited. Receive SMS alerts and stay informed. Get alerts for, you need to know what's happening in your account all the time. Keep track of, and control, your account from miles away, with just a phone call. SBI Bank offers Phone banking, a 24/7 automated service with multiple language options. Get account details, check your cheque status, ask for product details and do more. Its highly convenient and saves time. 5. Anytime access to account details Just call and know your account balance or outstanding balance anytime. 6. Track cheque status Now call and know the status of your cheques anytime. 7. Transaction information for trade services Stay informed and in control of your transactions anywhere in the world. Track outstanding forward contract, know the status of inward/outward bills and get more information. 8. Requests Ask for anything from chequebooks to email statements. Whenever you want to get a DD, create an FD or link it to another, stop cheque payment, just call.

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CUSTOMER RESPONSE TOWARDS E-BANKING Details of new products and solutions Know about new products and services immediately. You can also get details of our entire range of innovative products and services. Block Debit Cards Need to block or unblock ATM/debit cards? Just call.
At SBI Bank, youre not tied down to one branch. Every branch is your branch. You can deposit or withdraw from any of the branches. Get personal attention wherever your business takes you. Wherever you are, with over 600 branches all over India SBI Bank is always close at hand. Key features include:
Upcountry Cheque collection
Stay connected to your customers in any part of the country. Ask your customers to deposit their cheques at their nearest SBI Bank and ensure quick remittance and faster cash flows. At par cheques Issue a local cheque from anywhere. With SBI Banks at par cheques, payments clear faster and your vendors remain happy.

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CUSTOMER RESPONSE TOWARDS E-BANKING DEPOSIT OR WITHDRAW ANYWHERE. Deposit cheques at and withdraw cash from any of the over 600 branches of SBI Bank. You can do the same at any SBI Bank ATM. ATM SBI Bank's 24 Hour ATM network is one of the largest and most widespread ATM Network in India. Our ATMs are located in commercial areas, residential localities, major petrol pumps, airports, near railway stations and other places which are conveniently accessible to our customers. SBI Bank ATMs features user-friendly graphic screens with easy to follow instructions. We have introduced ATMs which interact with customers in their local language for increased convenience. Following are the features available on our ATMs, which can be accessed from anywhere at anytime. Cash Withdrawal: Withdraw upto Rs. 40,000/- per day from your account (50,000 for HNI's). Fast Cash option provides the facility of withdrawing prefixed amounts. Ultra Fast Cash option allows you to withdraw Rs.3000/- in one shot. Balance Enquiry: Know your ledger balance and available balance Mini Statement: Get a printout of your last 8 transactions and your current balance.

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CUSTOMER RESPONSE TOWARDS E-BANKING DEPOSIT CASH / CHEQUES: Available at all full function ATMs, Customers can deposit both cash and cheques. Cash deposited in ATMs will be credited to the account on the same day (provided cash is deposited before the clearing) and cheques are sent for clearing on the next working day. FUNDS TRANSFER: Transfer funds from one account to another linked account in the same branch. PIN CHANGE: Change the Personal Identification Number (PIN) of ATM or Debit card. PAYMENTS : The latest feature of our ATMs, this functionality can be used for payment of bills, making donations to temples / trusts, buying internet packs, airtime recharges for prepaid mobile phones and much more... OTHERS: Request for a checkbook from our ATMs and our concerned branch will dispatch it such that it reaches you within 10 working days. CHARGES: There is no charge levied on SBI Bank customers for transacting on SBI Bank's ATMs. However for customers not maintaining the minimum quarterly average balance in their savings account, first 6 transactions in the quarter will be free and Rs. 25 per transaction will be charged thereafter.

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CUSTOMER RESPONSE TOWARDS E-BANKING ORGANIZATIONAL STRUCTURE OFFICERS CRADE

CHAIRMAN AND MANAGING DIRECTOR
EXECUTIVE DIRECTOR
GENERAL MANAGER
DEPUTY GENERAL MANAGER
ASSISTANT GENERAL MANAGER
CHIEF MANAGER
SENIOR MANAGER
MANAGERS
OFFICERS

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CUSTOMER RESPONSE TOWARDS E-BANKING COMPETITORS Sales Current Change (Rs.Million) Price 637884.34 2015.00 193261.63 925.00 P/E Market 52-Week
Company SBI Punjab National Bank Bank Of Baroda Ltd Bank Of India Ltd Canara Bank Ltd Union Bank Of India IDBI OrientBan Indian Bank Ltd Corporation Bank Ltd
(%) Ratio Cap.(Rs.Million) High/Low -1.49 12.93 1298647.49 2500/922 0.13 8.01 291276.45 960/320
150915.77 612.90
-0.77
7.75
224989.20
633/195
163473.58 333.00
-1.83
8.39
178139.46
475/189
171190.54 398.30
-2.52
5.17
167526.00
442/144
118893.79 259.00 116316.27 116.80 88564.72 284.60 68303.30 166.55
-0.37 -2.14 -2.55 -0.63
6.75 8.43 7.22 4.68
131305.40 86510.79 73170.12 72029.45
291/120 140/41 312/98 196/65
60673.52 453.00
-2.02
5.93
66319.48
481/159

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CUSTOMER RESPONSE TOWARDS E-BANKING Allahabad Bank Ltd CentralBank of India Indian Overseas Bank Andhra Bank Ltd Syndicate Bank Ltd UCO Bank Ltd St.Bk of Travancore StBkMysor Dena Bank Ltd StBkBikan Bank of Maharashtra Vijaya Bank 73647.28 143.55 -1.44 5.22 65061.86 148/37
104551.89 151.30 96414.03 90.80
-1.50 -2.16
6.54 5.61
62076.13 50557.44
179/30 141/41
53746.17
99.00
-0.90
4.81
48451.50
125/41
95796.37 81213.82
85.85 56.00
-0.81 -1.75 -0.62 -2.09 -3.61 -1.51 -1.57 -1.37
5.30 4.17 4.55 6.52 4.83 5.27 5.00 4.31
45176.35 31313.52 29960.00 24240.60 23419.11 23047.50 21913.47 20613.77
105/39 65/23 673/176 786/294 93/30 540/170 58/19 59/20
41231.52 595.50 32472.76 659.30 34474.95 78.70
38102.80 454.00 42915.57 52378.25 50.10 46.90

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Capital Structure Fro m 1996 1999 2000 2001 2002 1991 1993 1994 1995 2003 2004 2005 2006 2007 2008 Class of To 2000 2000 2001 2002 2003 1993 1994 1995 1996 2004 2005 2006 2007 2008 2009 Shares Capita Issued Capital 526.2988 526.2988 526.2988 526.2988 526.2988 200 473.8287 474.0091 474.0098 526.2988 526.2988 526.2988 526.2988 631.5586 634.9685 Paid-up Shares (No's) 526298878 526298878 526298878 526298878 526298878 20000000 473828726 474009189 474009872 526298878 526298878 526298878 526298878 631470376 634880222 Face Value (Rs) 10 10 10 10 10 100 10 10 10 10 10 10 10 10 10 Paid-up Capital 526.2988 526.2988 526.2988 526.2988 526.2988 200 473.8287 474.0091 474.0098 526.2988 526.2988 526.2988 526.2988 631.4703 634.8802
l Auth. Equity Share 1000 Equity Share 1000 Equity Share 1000 Equity Share 1000 Equity Share 1000 Equity Share 1000 Equity Share 1000 Equity Share 1000 Equity Share 1000 Equity Share 1000 Equity Share 1000 Equity Share 1000 Equity Share 1000 Equity Share 1000 Equity Share 1000

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CUSTOMER RESPONSE TOWARDS E-BANKING TURNOVER Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Sources of funds Owner's fund Equity share capital 634.88 631.47 526.30 526.30 526.30 Share application money Preference share capital Reserves & surplus 57,312.82 48,401.19 30,772.26 27,117.79 23,545.84 Secured loans Unsecured loans 7,42,073.13 5,37,403.94 4,35,521.09 3,80,046.06 3,67,047.53 Total 8,00,020.82 5,86,436.60 4,66,819.65 4,07,690.14 3,91,119.66 Uses of funds Fixed assets Gross block 10,403.06 8,988.35 8,061.92 7,424.84 6,691.09 Less : revaluation reserve Less : accumulated 6,828.65 5,849.13 5,385.01 4,751.73 4,114.67 depreciation Net block 3,574.41 3,139.22 2,676.91 2,673.11 2,576.43 Capital work-in263.44 234.26 141.95 79.82 121.27 progress Investments 2,75,953.96 1,89,501.27 1,49,148.88 1,62,534.24 1,97,097.91 Net current assets Current assets, loans 37,733.27 44,417.03 25,292.31 22,380.84 18,390.71 & advances Less : current liabilities & provisions K.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE
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1,10,697.57 83,362.30
60,042.26
55,538.17
49,578.89
CUSTOMER RESPONSE TOWARDS E-BANKING Mar ' 09 Total net current assets Miscellaneous Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
-72,964.30 -38,945.27 -34,749.95 -33,157.32 -31,188.18
expenses not written Total 2,06,827.50 1,53,929.48 1,17,217.80 1,32,129.85 1,68,607.42 Notes: Book value of unquoted investments Market value of -
quoted investments Contingent liabilities 7,67,567.52 8,29,740.48 3,29,954.73 2,49,437.78 1,76,119.50 Number of equity shares outstanding (Lacs) 6348.80 6314.70 5262.99 5262.99 5262.99

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CUSTOMER RESPONSE TOWARDS E-BANKING GLOBAL PRESENCE International presence
State Bank of India (SBI) Mumbai Main Branch The banks have 141 overseas offices spread over 32 countries as on 31st Dec 2009. It has branches of the parent in Colombo, Dhaka, Frankfurt, Hong Kong, Johannesburg, London and environs, Los Angeles, Male in the Maldives, Muscat, New York, Osaka, Sydney, and Tokyo. It has offshore banking units in the Bahamas, Bahrain, and Singapore, and representative offices in Bhutan and cape Town. SBI operates several foreign subsidiaries or affiliates. In 1990 it established an offshore bank, State Bank of India (Mauritius). In 1982, he bank established a subsidiary, State Bank of India (California), which now has eight branches - seven branches in the state of California and one in Washington DC that it opened on 23 November 2009. The seven branches in California are located in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, San Diego and Bakersfield.

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CUSTOMER RESPONSE TOWARDS E-BANKING The Canadian subsidiary, State Bank of India (Canada) too dates to 1982. It has seven branches, four in the greater Toronto area and three in British Columbia. In Nigeria SBI operates as INMB Bank. This bank began in 1981 as the IndoNigerian Merchant Bank and received permission in 2002 to commence retail banking. It now has five branches in Nigeria. In Nepal SBI owns 50% of Nepal SBI Bank, which has branches throughout the country. In Moscow SBI owns 60% of Commercial Bank of India, with Canara Bank owning the rest. In Indonesia it owns 76% of PT Bank Indo Monex. State Bank of India already has a branch in Shanghai and plans to open one up in Tianjin. Associate banks There are six associate banks that fall under SBI, and together these six banks constitute the State Bank Group. All use the same logo of a blue keyhole and all the associates use the "State Bank of" name followed by the regional headquarters' name. Originally, the then seven banks that became the associate banks belonged to princely states until the government nationalized them between October, 1959 and May, 1960. In tune with the first Five Year Plan, emphasizing the development of rural India, the government integrated these banks into State Bank of India to expand its rural outreach. There has been a proposal to merge all the associate banks into SBI to create a "mega bank" and streamline operations. The first step along these lines occurred on 13 August 2008 when State Bank of Saurashtra

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CUSTOMER RESPONSE TOWARDS E-BANKING merged with State Bank of India, which reduced the number of state banks from seven to six. Furthermore on 19th June 2009 the SBI board approved the merger of its subsidiary, State Bank of Indore, with itself. SBI holds 98.3% in the bank, and the balance 1.77% is owned by individuals, who held the shares prior to its takeover by the government. The acquisition of State Bank of Indore will help SBI add 470 branches to its existing network of 11,448. Also, following the acquisition, SBIs total assets will inch very close to the Rs 10-lakh crore mark. Total assets of SBI and the State Bank of Indore stood at Rs 998,119 crore as on March 2009. The Subsidiaries of SBI till date

State Bank of Indore State Bank of Bikaner & Jaipuur State Bank of Hyderabad
State Bank of Mysore State Bank of Patiala
State Bank of Travancore
Growth State Bank of India has often acted as guarantor to the Indian Government, most notably during Chandra Shekhar's tenure as Prime Minister of India. With 11,448 branches and a further 6500+ associate bank branches, the SBI has extensive

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CUSTOMER RESPONSE TOWARDS E-BANKING coverage. State Bank of India has electronically networked all of its branches under Core Banking System (CBS). The bank has one of the largest ATM networks in the region, with more than 9000 ATMs across India. The State Bank of India has had steady growth over its history, though it was marred by the Harshad Mehta scam in 1992. In recent years, the bank has sought to expand its overseas operations by buying foreign banks. It is the only Indian bank to feature in the top 100 world banks in the Fortune Global 500 rating and various other rankings.
REVIEW OF LITERATURE
i.
Purpose of Literature Survey: The available literatures surveyed are classified under the following headings: 1. Concept of e-banking and related areas. 2. e-banking management The researcher used the services of the following libraries: a. b. KLE TIMS
a)
The researcher used the services of the following websites: www.google.com www.commercialdebtcounseling.com b)

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CUSTOMER RESPONSE TOWARDS E-BANKING To study about the similar projects, there are many projects on e-banking management wear there but none with specific reference to it. Hence the researcher for the purpose of the study chooses this subject. ii. Methodology of Literature Survey: The researcher visited libraries of various institutions for finding out if any literature was available about e-banking Management. Websites like www.google.com, www.commercialdebtcounseling.com and so on were visited for the same purpose. Various articles and publications were collected which had some information about the selected topic. iii. Conclusion of Literature Survey: There are many articles or publications about the employees undergoing e-banking. These and many other literatures, fails to identify the perception of the e-banking causers. A lot has been said and printed about strenuous working environment has been sidelined by these literatures. This research work practically incorporates these aspects EBanking has removed the time constraint from banking. Now you can withdraw cash or get any banking facility anytime. You are not required to ask bank employees for it. Electronic system will do all of this for you instantly.

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CUSTOMER RESPONSE TOWARDS E-BANKING Banking from anywhereDont worry if you are sitting in Middle East country and want to check you account in New York. EBanking certainly leaves no room for blaming the distances. Smart banking is ready to serve you anywhere, anytime. Safe and secure BankingElectronically enabled banking is more immune to security and safety related problems. Password Based Encryption (PBE), Secure Socket Layer (SSL), electronic signatures and electronic tokens gives a high level of security. Any malfunctioning or any inconsistency in your account can be traced easily. This makes eBanking more reliable. High Performance and flexibilityE-banking is a high performance system satisfying its customers for their every banking related queries and desires. What makes it more interesting is its flexibility. E-Banking is using everyday advancements in technology, which makes it smart and banking system of today and tomorrow. Bank customers across the world are now more willing to bank online as they are more comfortable with internet. They also want to avoid teller lines and telephone queues.

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CUSTOMER RESPONSE TOWARDS E-BANKING Their faith in security of internet banking has encouraged banks to turn from traditional methods to advance electronic enabled banking. EBanking is about to replace traditional banking system completely. In near future you will have all services in your pocket embedded on a small chip. These smart cards will provide you facilities and services beyond you imagination. If you have something to discuss over on eBanking or have some query, feel free to contact me. Author: Seokumar seokumar@gmail.com URL: http://www.paydaysonline.com
Customer Perspectives on E-business Value: Case Study on Internet Banking (By: Rahmath Safeena, Abdullah, and Hema Date, National Institute of Industrial Engineering)
Investors Adoption of Internet Stock Trading: A Study (By: Arwinder Singh [GGS College for Women], H.S. Sandhu [Guru Nanak Dev University], and S.C. Kundu [Guru Jambheshwar University of Science and Technology]
It is a fact that at one point in time or another nearly all entrepreneurs need a bank business loan, either to start up the enterprise, expend it, or to bridge difficult times when the consumer turns fickle. Of the many lenders and types of loans available, a bank business loan will probably be the best bet for starting the venture. A bank business loan is often the best way to establish and maintain your venture's credit rating, if it is fastidiously repaid.

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CHAPTER 5 DATA ANALYSIS & INTERPRETATION

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SWOT ANALYSIS
STRENGTHS
Customer access to information 24 hours per day. Timely access to information. The ability to offer a customer more than one method of retrieving information. Sophisticated technology systems will help to make a banking institute "future-proof." Diversity helps capture different types of markets. The ability to cut internal costs due to advanced technology. Increased efficiency due to automation. Increased accuracy of banking transactions.
WEAKNESS High price of service. Continual altering of customer wants and needs. Hostile feelings of employees due to possible pending lay-offs due to automation. Multiple options for the customer. Initial investment in technology will be expensive. K.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE
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CUSTOMER RESPONSE TOWARDS E-BANKING OPPORTUNITIES

The ability to obtain a larger customer base. Global expansion. This is an enormous market which will be a great opportunity in the future. The ability to take advantage of the growing popularity of Internet banking. Threats: Continual changing technology. Uncertainty of the banking industry.
THREATS More number of competitors. Possible failure of product due to non-acceptance of customer. General competitiveness of the banking industry. Competition from "lower price" operations.

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CUSTOMER RESPONSE TOWARDS E-BANKING 1: TABLE REPRESENTING ELECTRONIC BANKING FACILITY USED
E-BANKING FACILITY USED NO OF CUSTOMER
YES
NO
TOTAL
90
10
100

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1. GRAPH REPRESENTING ELECTRONIC BANKING FACILITY USED.
INTERPRETATION: From the above table we come to know that majority of the customers i.e. 90 of them say that they are using e-banking and the least number of the people say that they not using.
2: TABLE REPRESENTS WHICH ARE THE FEATURES USED BY CUSTOMER IN E- BANKING.

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CUSTOMER RESPONSE TOWARDS E-BANKING FEATURES/SERVICES INTERNET BANKING AUTOMATED TELLER MACHINE ELECTRONIC FUND TRASFER OTHERS TOTAL 02 164 28 NO OF CUSTOMERS 48 86

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CUSTOMER RESPONSE TOWARDS E-BANKING 2: GRAPH REPRESENTS WHICH ARE THE FEATURES USED BY CUSTOMER IN E- BANKING.
INTERPRETATION: From the above table we come to know that majority of the people says that they use the only ATM services and the least number of the people say they use other.

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3: TABLE REPRESENTING THE NUMBER OF YEARS CUSTOMER BANKING WITH STATE BANK INDIA YEARS BELOW 1 YEEAR 1-2 YEARS 2-4 YEARS MORE THAN 4 YEARS TOTAL NO OF CUSTOMERS 10 30 40 20 100

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3: GRAPH REPRESENTING THE NUMBER OF YEARS CUSTOMER BANKING WITH STATE BANK INDIA
INTERPRETATION: From the above table we come to know that majority of the people says that they using 2-4 years e-banking services and the least number of the people say they using below 1 year e-banking services.

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4: TABLE REPRESENTS FREQUENCY OF USAGE OF E-BANKING FREQUENCY OF USAGE DAILY FORTNIGHTLY WEEKLY MONTHLY TOTAL 10 16 50 24 100 NO OF CUSTOMER

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4: GRAPH REPRESENTS FREQUENCY OF USAGE OF E-BANKING

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CUSTOMER RESPONSE TOWARDS E-BANKING INTERPRETATION: From the above table we come to know that majority of the people says that by using E-Banking the transactions in weekly (ie, 50), and the least people says that by using E-Banking the transactions daily (ie, 10).
5: TABLE REPRESENTS BENEFITS DERIVED FROM E-BANKING BENEFITS TIME SAVING COST SAVING QUICK SERVICE OTHERS TOTAL NO OF CUSTOMER 62 58 40 02 162

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5: GRAPH REPRESENTS BENEFITS DERIVED FROM E-BANKING

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INTERPRETATION: From the above table we come to know that majority of the people says that by using the only ATM service the benefit like time saving can be derived from the E-Banking and the least number of the people says that by using Internet banking and ATM service the benefit like can be derived from the E-Banking.

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CUSTOMER RESPONSE TOWARDS E-BANKING 6: TABLE REPRESENTING REASONS FOR AVAILING E-BANKING FACILITY REASONS FOR AVAILING BRAND NAME INFRASTRUCTURE QUICK SERVICE OTHERS TOTAL NO OF CUSTOMER 20 26 52 02 100

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6: GRAPH REPRESENTING REASONS FOR AVAILING EBANKING FACILITY
INTERPRETATION: From the above table we come to know that majority of the people says that by quick service is a reason for availing the E-Banking facility K.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE
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CUSTOMER RESPONSE TOWARDS E-BANKING and the least number of the people says that by others is a reason for availing the E-Banking facility.
7: TABLE REPRESENTING CONVENIENT PLACE TO THE E-BANKING ACTIVITIES CONVENIENT PLACE HOME OFFICE INTERNATE CENTER OTHERS TOTAL NO OF CUSTOMER 28 28 34 10 100

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7: GRAPH REPRESENTING CONVENIENT PLACE TO THE EBANKING ACTIVITIES
INTERPRETATION: From the above table we come to know that majority of the people says that by Internet(ie,34) is the convenient place to carry out EK.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE
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CUSTOMER RESPONSE TOWARDS E-BANKING Banking activities and the least number of the people says that by other like ATM (ie,10) is the convenient place to carry out E-banking activities.
8: TABLE REPRESENTING TRANSACTIONS CARRY OUT BY EBANKING TRANSACTIONS CHECK BOOK ISSUING ONLINE TICKET RESERVATION BILLS PAYMENTS FUND TRANSFER DEMAND DRAFT BALANCE STATEMENT QTHERS TOTAL 08 18 06 08 00 100 NO OF CUSTOMRR 12 48

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8: GRAPH REPRESENTING TRANSACTIONS CARRY OUT BY EBANKING

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INTERPRETATION: From the above table we come to know that majority of the people says that by using E-Banking the transactions like Online Reservation and Fund transfer, and the least people says that by using E-Banking the transactions like Demand Draft, Balance Statement ,Bills Payments be carried out E-Banking.
9: TABLE REPRESENTING VARIOUS FACILITIES PROVIDED BY EBANKING K.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE

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CUSTOMER RESPONSE TOWARDS E-BANKING FACILITIES ATM TELEPHONE BANKING SMS BANKING ONLINE BANKING MOBILE BANKING TATOL NO OF CUSTOMER 90 18 30 36 08 182
9: GRAPH REPRESENTING VARIOUS FACILITY PROVIDED EBANKING

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INTERPRETATION: From the above table we come to know that majority of the people says that by E-Banking facilities provided more an ATM facility transactions like Online Reservation and Fund transfer, and the least people says that by using E-Banking the transactions like Demand Draft, Balance Statement, Bills Payments be carried out E-Banking.
10: TABLE REPRESENTING FREQUENCY USED BY E-BANKING SERVICES K.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE
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CUSTOMER RESPONSE TOWARDS E-BANKING FREQUENCY USED ATM TELEPHONE BANKING SMS BANKING ONLINE BANKING MOBILE BANKING TOTAL NO OF CUSTOMER 88 16 08 32 10 152
10: GRAPH REPRESENTING FREQUENCY USED BY E-BANKING SERVICES

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INTERPRETATION: From the above table we come to know that majority of the people says that they use the only ATM services and the least number of the people say they use SMS banking and Mobile banking.
11: A) TABLE REPRESENTING THE ACCOUNT BALANCES

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CUSTOMER RESPONSE TOWARDS E-BANKING SCALE POOR AVARAGE GOOD VERY GOOD EXCELLENT TOTAL NO OF CUSTOMER 00 04 30 16 50 100

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11: A) GRAPH REPRESENTING THE ACCOUNT BALANCES
INTERPRETATION: From the above graph we come to know that 50 respondents have given the 5th rank i.e. excellent, 16 respondents have given the 4th rank i.e. the scale of very good, 30 respondents have given the 3 rd rank i.e. the scale of good, 04 respondents have given the 2nd rank i.e. the scale of average and lastly 00 respondent have given the 1st rank i.e. the scale of poor. K.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE
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11: B) TABLE REPRESENTING THE ACCOUNT STATEMENTS SCALE POOR AVARAGE GOOD VERY GOOD EXCELLENT TOTAL NO OF CUSTOMER 00 06 30 40 24 100

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11: B) GRAPH REPRESENTING THE ACCOUNT STATEMENTS

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CUSTOMER RESPONSE TOWARDS E-BANKING INTERPRETATION: From the above graph we come to know that 24 respondents have given the 5th rank i.e. excellent, 40 respondents have given the 4th rank i.e. the scale of very good, 30 respondents have given the 3 rd rank i.e. the scale of good, 06 respondents have given the 2nd rank i.e. the scale of average and lastly 00 respondent have given the 1st rank i.e. the scale of poor.
12: TABLE REPRESENTING THE FUND TRANSFER SCALE POOR AVARAGE GOOD VERY GOOD EXCELLENT TOTAL NO OF CUSTOMER 04 08 20 28 40 100

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12: GRAPH REPRESENTING THE FUND TRANSFER

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INTERPRETATION: From the above graph we come to know that 40 respondents have given the 5th rank i.e. excellent, 28 respondents have given the 4th rank i.e. the scale of very good, 20 respondents have given the 3rd rank i.e. the scale of good,8 respondents have given the 2nd rank i.e. the scale of average and lastly 4 respondent have given the 1st rank i.e. the scale of poor.
13: TABLE REPRESENTING THE REQUEST A DEMAND DRAFT K.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE
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CUSTOMER RESPONSE TOWARDS E-BANKING SCALE POOR AVARAGE GOOD VERY GOOD EXCELLENT TOTAL NO OF CUSTOMER 04 30 40 16 10 100

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13: GRAPH REPRESENTING THE REQUEST A DEMAND DRAFT
INTERPRETATION: From the above graph we come to know that 10 respondents have given the 5th rank i.e. excellent, 16 respondents have given the 4th rank i.e. the scale of very good, 40 respondents have given the 3rd rank i.e. the scale of good, 30 respondents have given the 2nd rank i.e. the scale of average and lastly 4 respondent have given the 1st rank i.e. the scale of poor.

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14: TABLE REPRESENTING THE BILLS PAYABLE SCALE POOR AVARAGE GOOD VERY GOOD EXCELLENT TOTAL NO OF CUSTOMER 00 06 44 30 20 100

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14: GRAPH REPRESENTING THE BILLS PAYABLE

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INTERPRETATION: From the above graph we come to know that 20 respondents have given the 5th rank i.e. excellent, 30 respondents have given the 4th rank i.e. the scale of very good, 44 respondents have given the 3 rd rank i.e. the scale of good,22 respondents have given the 2nd rank i.e. the scale of average and lastly 4 respondent have given the 1st rank i.e. the scale of poor.
15: TABLE REPRESENTING THE ORDER A CHEQUE BOOK NO OF CUSTOMER POOR AVARAGE GOOD VERY GOOD EXCELLENT TOTAL 00 22 28 18 32 100

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15: GRAPH REPRESENTING THE ORDER A CHEQUE BOOK

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INTERPRETATION: From the above graph we come to know that 32 respondents have given the 5th rank i.e. excellent, 18 respondents have given the 4th rank i.e. the scale of very good, 28 respondents have given the 3rd rank i.e. the scale of good, 24 respondents have given the 2nd rank i.e. the scale of average and lastly 00 respondent have given the 1st rank i.e. the scale of poor.

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CHAPTER 6 SUMMARY OF FINDINGS, SUGGESTIONS & RECOMMENDATIONS AND
FINDINGS K.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE

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CUSTOMER RESPONSE TOWARDS E-BANKING The majority of the respondents were using/ aware of the E-banking facilities. Majority of the respondents were aware of the Internet Banking & from the features/ services majority of them are aware of ATM, & Fund Transfer. The majority of the respondents are using E-banking facilities are 2-4 years. Most of the respondents use Internet Banking weekly and monthly, for their transactions. The majority of the respondents are suggests their opinion in electronic banking, they got more benefits in the form of Time saving and they got less benefits from others. The Majority of customers are availing electronic banking facility, in the form of Quick service. The majority of the respondents are using Internet Banking from office and the internet center, as they feel it as a convenient place for their Transactions.
SUGGESTION & RECOMMENDATIONS K.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE

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CUSTOMER RESPONSE TOWARDS E-BANKING Many of the customers are using the facilities provided by SBI Bank like ATM, Electronic Fund Transfer and Internet Banking. But still the customers want some other facilities like Phone Bills Payment. The bank can provide this facility so that the customers will be more satisfied and they will stick to the SBI Bank. Most of the respondents do not use Internet Banking, because the respondents feel that Internet Banking is not safe for the Banking Transactions. So, to avoid this problem the company can adopt the changes in the bank like the company can give the awareness to the people regarding the Electronic Banking and should make them clear that by using Electronic banking they can get many benefits like it saves the time, it saves their cost and the processing of electronic banking is very quick. Some of the respondents have given the suggestion in improving Electronic Banking services in SBI Bank that there should have still more branches in the Bangalore city so that it will be more convenient and will be more helpful in withdrawing the money easily for the people as there are a limited branches in the city and they also had given the suggestion that the withdrawal of the money limit should be increased by the bank.
As there are limited numbers of ATMs are there in the Bangalore city and more number of people are using ATMs, the bank should increase the K.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE
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CUSTOMER RESPONSE TOWARDS E-BANKING ATMs in areas where it is not available in the city and it should be opened for 24 hours so that it will be more convenient for the people to withdraw the money easily and any time when they in need of money in emergencies. As there is a limited cash withdrawal option in the bank, more number of respondents has requested that the bank should have more cash withdrawal option in the SBI Bank, so that it helps the customers to invest more money in the bank.

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CHAPTER 7 CONCLUSION

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CONCLUSION This research has been brought up many facts regarding the Electronic Banking in SBI Bank. 1) Most of the respondents do not use Internet Banking, because the respondents feel that Electronic Banking is not safe for the Banking Transactions. So, to avoid this problem the company can adopt the changes in the bank like the company can give the awareness to the people regarding the Electronic Banking and should make them clear that by using Electronic banking they can get many benefits like it saves the time, it saves their cost and the processing of electronic banking is very quick. 2) As more number of respondents are requested to increase the ATMs, should have more branches in the city and the withdrawal limits should be increase. The bank should provide these services to the customers so that it will be more helpful to the customers and there will be more benefit to the bank to grab more number of customers to their bank. 3) Some of the customers want the other facilities like Phone Bills Payment. The bank can provide this facility to the customers so that they can be more satisfied and there will be no complaint regarding the facilities provided by the SBI Bank. So, the above changes can be adopted for the improvement of the Electronic Banking in SBI BANK. K.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE
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CUSTOMER RESPONSE TOWARDS E-BANKING 4) This project has helped me to know how the E-Banking services has been carried out in the SBI BANK and gave the opportunity to know the customers response towards E-Banking services and other benefits of the bank and recommended the suggestions regarding the improvement of the EBanking services.

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Customer Response Towards E-Banking: K.L.E.Society'S S.Nijalingappa College

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CUSTOMER RESPONSE TOWARDS E-BANKING

K.L.E.SOCIETYS S.NIJALINGAPPA COLLEGE