indusind bank.doc
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mba projectTRANSCRIPT
SUMMER TRAINING PROJECT REPORT
ON
NET BANKING SERVICE PROVIDED BY
INDUSIND BANK
SUBMITTED TO:
PUNJAB TECHNICAL UNIVERSITY, JALANDHAR
SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT FOR THE DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION (2008-11)
SUBMITTED BY :
DILPREET SINGH
BBA
UNIVERSITY ROLL NO. 80103320091
GURU NANAK INSTITUTE OF MANAGEMENT AND
TECHNOLOGY
MODEL TOWN, LUDHIANA
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ACKNOWLEDGEMENT
First & foremost, it is my profound privilege to express my sincere thanks to Mr.V.K.Goyal
(chief executive) who made it possible for me to work in this prestigious organization.
I gratefully acknowledge my indebtness to Mr. Rajan Soni (Deputy manager, IndusInd
Bank) who guided me from time to time complete my training at IndusInd Bank.
I am also thankful to Dr. [Col.] H.S. Singha Director of GNIMT for helping me to
undertake my summer training in this reputed organization. I am thankful to his for
encouraging & valuable support.
My special and sincere thanks are reserved for my guide Mrs. Rajni Sofat who never said
‘no’ to me and lend me a helping hand whenever I needed her guidance. She always
inspired me to learn more & more.
I am thankful to the staff members of the other department of IndusInd for their generous
support, cooperation, encouragement & valuable suggestions through my training.
Dilpreet Singh
University Roll No. 80103320091
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PREFACE
This project is result of my six weeks in industry summer training at IndusInd. Summer training
is an integral part of BBA course & it aims at providing a firsthand practical experience of the
industry to the students. This helps the students to view a real business world closely, which in
turn will influence perception.
I am happy that I got an opportunity to pursue training in a reputed, well established, fast
growing & professionally managed organization like IndusInd Bank. The project assigned to me
was “NET BANKING SERVICE PROVIDED BY INDUSIND BANK”. In course of training
I got an opportunity to see & work specially the personnel department.
The practical knowledge acquired is certainly going to help in one & another way. The training
in industry gives me opportunities to understand the various things.
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STUDENT DECLARATION
I, Dilpreet Singh student of Bachelor of Business Administration from
GURU NANAK INSTITUTE OF MANAGEMENT AND TECHNOLOGY,
MODEL TOWN, LUDHIANA, hereby declare that I have completed my project
on reasons behind employee turnover as part of the course requirement
I further declare that the information presented in this project is true and original to
the best of my knowledge and none of its part is submitted for any other award or
degree.
Signature
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CHAPTER 1
INTRODUCTION
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INTRODUCTION
1.1 AN INTRODUCTION TO THE COMPANY
IndusInd Bank derives its name and inspiration from the Indus Valley civilisation - a culture
described by National Geographic as 'one of the greatest of the ancient world' combining a spirit
of innovation with sound business and trade practices.
Mr. Srichand P. Hinduja, a leading Non-Resident Indian businessman and head of the Hinduja
Group, conceived the vision of IndusInd Bank - the first of the new-generation private banks in
India - and through collective contributions from the NRI community towards India's economic
and social development, brought our Bank into being.
The Bank, formally inaugurated in April 1994 by Dr. Manmohan Singh, Honourable Prime
Minister of India who was then the country’s Finance Minister, started with a capital base of
Rs.1,000 million (USD 32 million at the prevailing exchange rate), of which Rs.600 million was
raised through private placement from Indian Residents while the balance Rs.400 million (USD
13 million) was contributed by Non-Resident Indians.
A NEW ERA
About IndusInd Bank
IndusInd Bank Ltd. is one of the new-generation private-sector banks in India which commenced
its operations in 1994. The Bank enjoys a patronage of 2 million customers and has a network of
180 branches, 402 ATMs spread across 147 geographical locations in 28 states and union
territories as on September 30, 2009. The Bank also has a Representative Office each in Dubai
and London. The Bank's total business (deposits plus advances) as on September 30, 2009
crossed Rs. 40,000 crores.
It has multi-lateral tie-ups with other banks providing access to more than 21000 ATMs for its
customers. It enjoys ‘clearing and settlement bank’ status with leading capital, commodity and
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currency exchanges within India eg - BSE / NSE and commodity exchanges like- MCX,
NCDEX, and NMCE.
While continuing its drive for efficiency and profitability, IndusInd Bank is a keen participant in
the Corporate Social Responsibility space. It is actively engaged in helping mentally-challenged
and underprivileged children and on other hand, helps in sensitizing /upholding environmental
and ecologically appropriate behaviour. The Bank actively supports “Green Practices” within
the Bank and under its campaign “Hum aur Hariyali”, it has successfully launched a slew of
green initiatives. It is also an active supporter of the arts especially in the field of music and
dance.
CRISIL has assigned Highest P1+ rating to IndusInd Bank’s Fixed Deposits and Certificates of
Deposit. Recently, CRISIL has reaffirmed its P1+ rating of IndusInd Bank’s Fixed Deposits and
Certificates of Deposit programme. ICRA has also assigned the highest A1+ rating to IndusInd
Bank’s Certificates of Deposit.
1.2 BOARD OF DIRECTORS
Mr. R. Seshasayee Managing Director, Ashok Leyland Ltd.
Mr. R. Sundararaman Former Dy Managing Director of SBI
Mr. T. Anantha Narayanan Chartered Accountant and Expert in Agriculture and Rural Economy
Dr. T. T. Ram Mohan Professor, Finance & Accounting, IIM, Ahmedabad
Mrs. Pallavi Shroff Practising Lawyer
Mr. Premchand Godha M.D. of Ipca Laboratories Ltd., having practical experience of SSI &
Agriculture
Mr. Ajay Hinduja Businessman
Mr. Sushil Chandra Tripathi I.A.S (Retired), Advocate
Mr. Ashok Kini Former Managing Director of SBI
Mr. Romesh Sobti Managing Director & CEO
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1.3 MILLESTONE
Year Business Achievements
2007-08
Business Turnover touched a figure of Rs 31833.16 crores
Network of Branches increased to 180 along with 183 off-site ATMS, thus having presence in
over 147 geographical locations spread over 28 states including Union Territories
A Strategic tie-up with Reliance Securities for offering a value-added 3-in-1 savings accounts-
linked package to customer-comprising a saving bank account, a depository account, and an
Internet trading account
Signed an agreement with National Multi Commodity Exchange Ltd. to become their Clearing
Bank; It already had such agreements with and NCDEX
Strategic partnership with Cholamandlam MS for banc assurance
Received recognition in the form of a Certificate of Nomination for the Global Connect
Customer Responsiveness Awards. The participants for
the award were evaluated on various parameters such as Responsiveness, Intelligence
Generation, Intelligence Dissemination, Customer Education, Top management Emphasis,
Innovation & Learning
Received recognition by BSE and NASSCOM Foundation for the Best Corporate Social
Responsibility Practice Category
Featured in the Standard and Poor ESG India Index which provided the investors with exposure
to liquid and tradable index of 50 of the best performing stocks in the Indian market as measured
by environmental, social and governance (ESG) parameters
2006-2007
Net worth crossed a milestone figure of Rs 1000 crores at Rs 1056 crores
Successful completion of GDR issue of Rs 145.96 crores
Business turnover touched a figure of Rs 28.700 crores registering a growth of 18.17% over the
previous year.
Network of Branches increased to 170 along with 99 off-site ATMs, thus having presence in
over 141 geographical locations spread over 27 States including Union Territories
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Highest A1+ rating for its Certificate of Deposits by ICRA and Highest P1+ rating for its FDs by
CRISIL.
Bestowed with the prestigious IBA Award for technology implementation (STP).
Added a number of new business and product lines, viz the launch of Indus GOLD and Indus
Gift Card, E-Remittance facility, tie-up with number of Banks for ATM usage, tie-up with
Reliance Securities to extend Portfolio Management services and Banc assurance tie-up with
Aviva Life Insurance.
Ranked among the top ten banks in the country in the ET500 list of leading companies in India.
Rated as ‘The best among the top 10 private-sector banks’ in a survey covering 79 banks
conducted by Business Standard in its November 2005 issue. Ranked sixth in the overall list, the
bank was also identified the
“Most Efficient Bank’ among all banks in India.
Bestowed ‘India’s Most Productive Bank’ status by a Business Today- KPMG Survey
Presented ‘Outstanding Achiever of the year 2005- Corporate’ (Runner up- Banking Technology
Award) by IBA, Finacle (from Infosys) and TFCI
(Trade Fair and Conference International).
2004-05
Business Turnover Crossed Rs 22000 crores
Network grew to 115 branches, 9 extension counters and 195 ATMs. Spread over 95
geographical locations
Bestowed with highest rating for deposits from reputed rating agencies
Highest rating ‘P1+’ on Fixed Deposits from CRISIL
Highest rating ‘P1+’ on Certificate of Deposits from CRISIL
Highest rating ‘F1+’ on Fixed Deposits from Fitch Ratings India Pvt. ltd.
Bank’s second International Representative Office opened in London.
100th Branch opened at Dadar, Mumbai.
Signed an agreement with NCDEX as clearing banker.
Launched International Mahila Card.
2003-04
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Total business volume touched Rs 19000 crores.
Completes 10 years of banking excellence
Ashok Leyland Finance merges with the bank
The first Indian commercial bank to achieve certification for its ‘Entire Network of Branches’
under the ISO 9001:2000 Quality Management System.
Launch of Debit Card- International Power Card.
Bank’s first International Representative Office in Dubai.
One of the first banks to live on RTGS platform.
2002-03
One of the first banks to implement the RBI- Electronic Funds Transfer Scheme.
2001-02
Total business volume touches Rs 14000 crores. Highest productivity in the Indian banking
sector with Rs 16 crores of business per employee.
2000-01
Total business volume crosses Rs 10000 crores
1998-99
IndusInd again rated as one of the Top Performing Banks in various survey reports, for the
second year in succession.
1997-98
IndusInd rated as one of the Top Performing Banks in various survey reports
1996-97
Pioneer in launching Internet Banking.
1.4 MISSION
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To position induslnd bank limited as a top 3 performer in the new private bank space in 3years
measured by The 3 parameters of profitiability, productivity and Efficiency.
1.5 PRODUCTS
PRODUCTS OFFERED BY INDUSIND BANK
Bank offers various products in terms of servicing its customer. The bank has tried to tab the
growth of the retail sector & has come with various products, Priority Banking being one of
them. Bank has pushed the retail banking through a wide spread distribution network & through
the growth of the bank’s
Product& customer base. Bank has also tried to enhance cost Efficiency by leveraging
technology that is continuous upgrading & customer base.
Saving Account
Induslnd Bank offers you a Regular Saving Account with host of convenient features and
banking channels to transact through. So, now you can bank at your convenience, without the
stress of waiting in queues.
Current Account
In today’s fast-paced world, your business regularly requires you to receive and send funds to
various cities in the country. INDUSIND Bank Regular Current Account gives you the power of
inter-city banking to more than 200 cities.
Fixed Deposits
Safety, Flexibility, Liquidity and Returns!!!
A Combination of unbeatable features of the Fixed Deposit from INDUSIND Bank.
Credit Cards
An INDUSIND Bank credit card gives you the facility of cash, convenience and a range of
benefits, anywhere in the world. These benefits range from life time free cards, insurance
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benefits, global emergency assistance service, discount, utility payment, travel discount, and
much more.
Debit Cards
The INDUSIND Bank Debit Card is a revolutionary form of cash that allows customers to access
their bank account around the clock, around the world.
INVESTMENT
At INDUSIND Bank, we care about all your needs. Along with deposit products and loan
offerings, INDUSIND Bank assists you to manage your finance by providing various
investments options ranging from INDUSIND Bank offers to investment in mutual funds and
pure gold.
You can invest in above products through any of our branches. For selected products
INDUSIND Bank also provides, the ease of investing through electronic channels like ATMs
and Internet (www.indusindbank.com).
E-Instructions :
You can transfer securities 24 hours a day, 7dys a week through Internet & Interactive Voice
Response (IVR) at a lower cost. Now with “Speak to transfer”, you can also transfer or pledge
instructions through our customer care officer.
Mutual Fund
IndusInd bank has tied-up with almost all the mutual funds in the country for distribution pan
India. We are currently distributing schemes of the following mutual fund:-
ABN AMRO LIC
BIRLA PRINCIPAL
BOB PRUICICI
CHOLAMANDALAM RELIANCE
CANBANK STANDARD
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CHARTERED
DSP SAHARA
DEUTSCHE SBI
FIDELITY SUNDARAM
HSBE TEMPLETON
HDFC TATA
ING TAURAS
JM UTI
General Insurance:
IndusInd Bank has tied up with “Aviva Life Insurance”
Has 3 Plans:
1. Life Long : - A Plan flexible enough to adapt to your life’s changing needs.
2. Pension Plus: - Why wait till your 60th birthday to follow
your hearts?
3. Save Guard : - A simple way to secure your service.
General Insurance:
IndusInd Bank has tied up with “CHULAMANDULAM”
1. Health Insurance
2. Marine Insurance
3. Stock Insurance
RETAIL BANKING
Accounts and Deposits:
Saving Accounts
Regular Saving Account
Privilege Saving Account
Privilege Plus Saving Account
Current Account
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Regular Current A/C
Business Current A/C
Term Deposit
Fixed Deposit
Flexi term deposit
1.6 AN INTRODUCTION TO THE PROJECT
1.6.1 AN INTRODUCTION TO NET BANKING
With cyber cafes and kiosks springing up in different cities access to the Net is going to be easy.
Net banking (also referred as e banking) is the latest in this series of technological wonders in the
recent past involving use of Internet for delivery of banking products & services. Even the
Morgan Stanley Dean Witter Internet research emphasized that Web is more important for retail
financial services than for many other industries.
Internet banking is changing the banking industry and is having the major effects on banking
relationships. Banking is now no longer confined to the branches were one has to approach the
branch in person, to withdraw cash or deposit a cheque or request a statement of accounts. In true
Internet banking, any inquiry or transaction is processed online without any reference to the
branch (anywhere banking) at any time. Providing Internet banking is increasingly becoming a
"need to have" than a "nice to have" service. The net banking, thus, now is more of a norm rather
than an exception in many developed countries due to the fact that it is the cheapest way of
providing banking services.
1.6.1.1 MEANING OF NET BANKING
Net banking is a concept which enables everyone to conduct business with a bank from the
comfort of home or office.
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.
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1.6.1.2 DEVELOPMENT OF NET BANKING IN INDIA
The financial reforms that were initiated in the early 1990s and the globalization and
liberalization measures brought in a completely new operating environment to the banks.
The bankers are now offering innovative and attractive technology-based services and
products such as ‘Anywhere Anytime Banking’, ‘Tele-Banking’, ‘Internet Banking’,
‘Web Banking’, ‘Net Banking’, ‘Mobile Banking’, etc. to their customers to cope with
the competition. The process started in the early 1980s when Reserve Bank of India
(RBI) set up two committees in quick succession to accelerate the pace of automation of
operations in the banking sector. A high-level committee was formed under the
chairmanship of Dr. C. Rangarajan, then Governor of RBI, to draw up a phased plan for
computerization and mechanisation in the banking industry over a five-year time frame of
1985–1989. The focus by this time was on customer service and two models of branch
automation were developed and implemented. Having gained experience in the earlier
mode of computerization, the second Rangarajan committee constituted in 1988 drew up
a detailed perspective plan for computerization of banks and for extension of automation
to other areas such as funds transfer, e-mail, BANKNET, SWIFT, ATMs, net banking,
etc. The Government of India enacted the Information Technology Act, 2000 (generally
known as IT Act, 2000), with effect from 17 October 2000 to provide legal recognition to
electronic transactions and other means of electronic commerce. RBI had set up a
‘Working Group’ on net banking to examine different aspects of net banking. The Group
had focused on three major areas of net banking such as
(1) technology and security issues,
(2) legal issues and
(3) regulatory and supervisory issues.
RBI had accepted the recommendations of the ‘Working Group’, and accordingly issued
guidelines on ‘internet banking in India’ for implementation by banks. The ‘Working
Group’ has also issued a report on net banking covering different aspects of net banking.
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Internet banking in India is currently at a nascent stage. While there are scores of
companies specialising in developing internet banking software, security software and
website designing and maintenance, there are few online financial service providers.
ICICI bank is the first one to have introduced net banking for a limited range of services
such as access to account information, correspondence and, recently, funds transfer
between its branches. ICICI is also getting into e-trading, thus offering a broader range of
integrated services to the customer.
Several finance portals for provision of non-banking financial services, e-trading and e-
broking have come up. Commercial applications such as Electronic Bill Presentment
(EBP) and Procurement systems may not be introduced in India immediately, but are
likely to have a greater impact than the retail applications. The corporate sector is
adequately computerized and has already recognized the important role of e-commerce in
future. Increasingly, companies are setting up websites even where there are no
immediate tangible benefits to them from doing so.
1.6.1.3 NET BANKING IN INDIA – RBI GUIDELINES
In India, internet banking or net banking is in rudimentary stage. In order to promote
safety and soundness of internet banking activities, the RBI constituted a Working Group
on Internet Banking. The Group issued guidelines in June 2001. The Group divided the
internet banking products in India into 3 types based on the levels of access granted. They
are
Information Only System
Electronic Information Transfer System
Fully Electronic Transactional System.
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1.6.1.4 ADVANTAGES AND DISADVANTAGES OF NET BANKING
Internet Banking also has its advantages and disadvantages. Below are mentioned the
most popular advantages of using Internet Banking along with some unavoidable
disadvantages.
The advantages include
Convenience - online banking sites never close; they're available 24 hours a day,
seven days a week, and they're only a mouse click away;
Portability – you now have access to money whenever there is an emergency,
whether or not you are in the country;
Transaction speed - online bank sites generally execute and confirm transactions
at the same rate or quicker than, ATM processing speeds;
Effectiveness – they offer sophisticated tools, including account aggregation,
stock quotes and rate alerts to help you manage all of your assets more
effectively.
Reduction in workload - No more standing in long lines at the bank, eliminating
endless paper based bank statements.
The disadvantages include
Lack of Computerization - which relates to virtual banks, revolves around the
lack of ATMs;
Start-up may take time - In order to register for your bank's online program, you
will probably have to provide ID and sign a form at a bank branch which can be
time consuming;
Learning curve - Banking sites can be difficult to navigate at first;
Distrust of the User - the possibility of frauds, making errors etc.
Problem of Security – Various sites are not properly looked at to ensure whether
customers money is safe in cyber world or not.
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1.6.1.5 TRADITIONAL BANKING VS NET BANKING
Net banking or internet banking works much like traditional banking. The primary
difference is that in net banking account and information is accessed, payments are made
and statements reconciled using computer rather than paper or the phone to complete
transactions. Instead of going down to local branch office when one bank online he/she
can accomplish multiple tasks at once with the click of a button.
Online banking is rapidly becoming more and more popular as consumers recognize the
advantages online banking has to offer. For one most banks charge fewer fees if you take
advantage of their online banking services. You can also stop receiving paper statements
if you like in many cases and conduct 95% of your business over the Web when you take
advantage of Internet banking.
What to Internet Banks do? The same things traditional banks do. They hold onto our
money and lend it out to others respectively. The manage loans and help us keep track of
our finances. Chances are if you own a bank account at a traditional bank they offer some
type of Internet banking or online services. The next time you stop into your branch
office you should ask them about online banking. You may find once you start you have
no desire to go back to traditional banking.
For those that have a hard time keeping track of paper statements, Internet banking is a
life saver. Internet banking is also advantageous for frequent travelers that need to keep a
close eye on their finances from abroad.
1.6.3 NETBANKING SERVICE AT INDUSIND BANK
Net banking is IndusInd 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
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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.
The IndusInd Bank web site (www.hdfcbank.com) also features two versions of a demo
facility - one "interactive" and the other "guided" - making it possible for even Internet
illiterates to get comfortable with its services.
On the downside, however, 'registration' for the service involves downloading of a form
that needs to be posted/delivered to any of its branches - not exactly "web savvy" as we
would call it. Also, the form itself requires Adobe Acrobat Reader to be installed and the
file size will exceed 5.5 MB, which translates roughly into an hour or more of on-line
time. Its 3-question FAQ page also assumes a high level of computer knowledge from
users ... not consistent with the rest of the website.
Net Banking service provides a host of features at the finger-tips:
View Account Balances & Statements
Transfer Funds between accounts
Create Fixed Deposits Online
Request a Demand Draft
Pay Bills
Order a Cheque Book
Request Stop Payment on a Cheque
And lots more.
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1.6.3.1 SERVICES OFFERED UNDER NET BANKING SERVICE PROVIDED
BY INDUSIND BANK
IndusInd Bank Savings and Current account holders can access their account through
Net Banking.
Currently, Net Banking service is offered to the IndusInd Bank customers free with all
accounts. However, all minimum balance/deposit amount requirements of the relevant
accounts will need to be honoured. No separate fee is charged to access this service.
Currently, one can do any of the following:
Queries -
Check your Balance
See your Statement
Inquire about cheque status
Ask for a Statement
Ask for a Cheque Book
Inquire about your Fixed Deposit
Inquire about your TDS details
See your Demat Account
Update your profile
View IndusInd Bank Credit card bills
View your Mutual funds portfolio
Transactions -
Stop a Cheque
Pay your Bills
Ask for a Demand Draft
Transfer funds between your accounts
Transfer funds to a third party
Request for a new Fixed Deposit
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Shop Online
Pay IndusInd Bank Credit Card Dues
Buy and sell Mutual Funds.
1.6.3.2 SECURITY AND SAFETY OF TRANSACTIONS ON NET BANKING
The customer can be assured of complete privacy when you use IndusInd Bank's Net
Banking facility. The bank has built several checks to safeguard the Net Banking
transactions. Before the user gain access to his/her account, he/she will be asked to
enter his/her unique customer ID and IPIN (password) to verify the identity. To
maximise the security and confidentiality of the transactions, one’s password is not
accessible to anyone, not even bank employees.
To ensure the security of the transactions, the bank uses a technology called Secured
Socket Layer (SSL), which involves scrambling of the information between the
customer and the Bank. If an unauthorized user tries to access your account by keying
in various combinations while trying to guess your password, your account will
automatically get locked. Moreover, when the user log-in to Net Banking, the last date
and time of log-in will be displayed so that the user can make sure that nobody has
accessed his/her account.
In addition to these online security features, have been placed under the supervision of
a dedicated team to monitor the access to the web server and to prevent unauthorized
access. These features work together to maximise the security of your banking
transactions.
IndusInd Bank has implemented a new security solution for its customers - secure
access as security of the customer is bank’s top priority, the bank has initiated the
secure access solution to protect the customers from fraudsters and hackers.
Currently following transactions are covered under secure access
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Transfer from one IndusInd Bank account to other IndusInd Bank account
Transfer from IndusInd Bank account to any other bank's account
Visa money transfer
Third party demand draft through netbanking.
Internet banking has been exploited by hackers and fraudsters to deceive the bank's
customer and commit frauds. While the bank has best-of-the-breed solutions, processes
and people deployed to extend secure banking to its customers, it is important for our
customers to know that "secUrity is incomplete without u". Customers need to follow
secure computing guidelines to avert any frauds or security breaches to their accounts,
as keys to the internet banking accounts are held by respective account owners in the
form of customer IDs and internet banking passwords (I PIN). Here are some internet
banking security tips provided by IndusInd Bank:
1. Keep your customer ID and IPIN confidential and do not disclose it to
anybody.
2. Change your IPIN as soon as you receive it by logging into your net banking
account. Memorize your IPIN, do not write it down anywhere.
3. Refer "protect your computer accounts with strong passwords" section under
computer security tips.
4. Avoid accessing internet banking from shared computer networks such as
cyber cafes.
5. Do not click on links in the emails or sites other than www.hdfcbank.com to
access your net banking webpage.
6. Always visit the IndusInd Bank's net banking site through IndusInd Bank's
home page by typing the bank's website address (www.hdfcbank.com) on to the
browser's address bar. Users are encouraged to add the bank's url to favorites or
bookmark in the user computer browser.
7. Always verify the authenticity of the bank's net banking webpage by checking
its url as "https://netbanking.hdfcbank.com" and the pad lock symbol at the
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bottom corner of the browser before putting in your customer ID and IPIN.
8. If your customer id and ipin appear automatically on the login page of net
banking webpage, you should disable "auto complete" feature on your browser.
To disable auto complete feature:
a. Open internet explorer, click on “tools”=> internet options=> content.
b. Click on "auto complete", under "personal information"
c. Uncheck "user names and passwords on forms", click on "clear
passwords"
d. Click "ok"
9. Use virtual keyboard feature while logging into your internet banking account.
10. Do cross check your last login information available in net banking upon every
login to ascertain your last login and monitor any unauthorized logins.
11. Always type your confidential account information. Do not copy paste it.
12. Monitor your transactions regularly.
13. Use IndusInd Bank's "InstaAlerts" service.
14. Always logout when you exit net banking. Do not directly close the browser.
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CHAPTER 2
REVIEW OF LITERATURE
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REVIEW OF LITERATURE.
A number of researches have been conducted on net banking and its adoption,
development and its perils. Due to shortage of time and resources, a review of all the past
researches done could not be mentioned in this research project. So, a snapshot of some
of the reviews have been presented.
Nath et.al (2001) in their study found that in every industry, E-commerce is
revolutionizing the way business is conducted. New business models are replacing
outdated ones and organizations are rethinking business process designs and customer
relationship management strategies. Banks are no exception to this transformation. This
study examines bankers' views on providing banking services to customers using the
web. Specifically, it addresses issues such as the strategic need for Internet banking, its
effect on customer-bank relationships, and customers' experiences in Internet banking.
Data collected from 75 banks show that most banks do not yet offer full-fledged Internet
banking. However, most have plans to do so. Furthermore, bankers see Internet banking
as a strategic opportunity that can reduce transaction costs, enhance customer service,
increase the customer base and improve cross-selling opportunities. Also, Internet
banking is perceived more favorably by banks that offer it compared to those that do not.
Corrocher (2002) in his study examined the drivers of the adoption of the Internet
banking, in order to understand its role with respect to the traditional banking activity and
to offer a comprehensive picture of the diffusion of such a technology within the sector.
In doing so, it analyses the role of firm-specific and non firm-specific (technology,
market, environment) characteristics in influencing the decision to adopt the new
technological platforms to perform on-line banking transactions within the retail segment
of the financial sector. The main purpose of this paper is to investigate the relationship
between the Internet banking and the traditional banking activity, in order to understand
if these two systems of financial services delivery are perceived as substitutes or
complements by the banks.
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Leary (2002) in his study examined how Internet or electronic banking is slowly but
surely reviving itself after numerous attempts by various financial institutions and
financial intermediaries in the 1970 and 1980s. The standardization in technologies and
the public's familiarity with the use of personal computers and the Internet have made the
Internet bank or Internet banking site easier, cheaper and more cost effective than ever
before. This paper discusses the coming of age of Internet banking, the opportunity for
Internet banking and some of the obstacles and procedures that must be followed in order
to develop a sound Internet banking presence.
Bradley & Stewart (2003) conducted a research in which they studied the factors
driving the adoption of internet banking. The financial services environment has been
subject to changes on many fronts. Technological change and the advent of the Internet
are among the most dramatic and challenging areas of change for the sector. This paper
looks at retail banking and its adoption of online banking, in particular the factors driving
and inhibiting adoption by banks. An international Delphi study confirms the high level
of importance of the Internet for retail banking. By 2011, it is expected that bank
adoption of the Internet will be near universal. The key factors that are driving banks to
adopt online banking are the adoption by other banks, competitive forces, consumer
demand and the availability of technology. Working against adoption are banks'
perceptions that the Internet does not offer enhanced ability to deal with customers as
well as bank resistance to change, their existing legacy systems and the resources
required to adopt.
Singh & Malhotra (2004) in their study found that the tremendous advances in
technology and the aggressive infusion of information technology had brought in a
paradigm shift in banking operations. The purpose of this paper is to help fill significant
gaps in knowledge about the Internet banking landscape in India. The paper presents
data, drawn from a survey of commercial banks websites, on the number of commercial
banks that offer Internet banking and on the products and services they offer. It
investigates the profile of commercial banks that offer Internet banking, using univariate
statistical analysis, relative to other commercial banks with respect to profitability, cost
26
efficiency, and other characteristics. By the end of first quarter, 2004, differences
between Internet and non-Internet banks had begun to emerge in funding, in sources of
income and expenditures and in measures of performance. It was also found that the
profitability and offering of Internet banking does not have any significant correlation.
Laukkanen & Tommi (2007) in their research aimed to compare customer perceived
value and value creation between internet and mobile bill paying service. A qualitative
in-depth interviewing design was applied in order to ascertain the factors that create value
perceptions in fund transfer service via personal computer and mobile phone. The
findings suggest that efficiency, convenience and safety are salient in determining the
differences in customer value perceptions between internet and mobile banking. The
findings of the qualitative study, being more depth than wide in nature, deserve to be
quantitatively measured in future studies in order to provide more generalized results.
The paper provides enhanced information for business managers about both positive and
negative customer value perceptions in internet and mobile banking. By understanding
how and what kind of value different service channels provide for customers service
providers are better enabled to create actions to enhance internet and mobile banking
adoption. The contribution of the paper lies in achieving a more profound understanding
on consumer value perceptions to internet and mobile banking. It expands the literature
on electronic and mobile commerce and on electronic banking especially.
Nandan et.al (2008) in his paper discusses the concept of Internet Banking, perception of
Internet bank customers, non-customers and issues of major concern in Internet banking.
The state of Internet banking in India has been explored using various concepts like E-
banking continuum, and gap analysis related to the various services and the security
features offered. In order to have a clear and focussed insight about the perceptions of
users (and non-users) about Internet banking a survey was conducted. The findings of the
survey provide valuable insights into concern for security, reasons for lower penetration,
and likeliness of adoption, which have been used to make useful recommendations.
27
Mishra & Kiranmai (2009) in their study found that information technology is
considered as the key driver for the changes taking place around the world. According to
Heikki, the transformation from the traditional banking to e-banking has been a 'leap'
change. The evolution of e-banking started from the use of Automatic Teller Machines
(ATMs) and telephone banking (tele-banking), direct bill payment, electronic fund
transfer and the revolutionary online banking. The future of electronic banking would be
more interactive i.e., TV banking. Finland is the first country in the world to have taken a
lead in e-banking. In India, ICICI Bank initiated e-banking services during 1997 under
the brand name 'Infinity'. It has been forecasted that among all categories, online banking
is the future of electronic financial transactions. The rise in e-commerce and internet in
enhancing online security transformation and sensitive information has been the core
reason for the penetration of online banking in everyday life. The shift towards the
involvement of the customers in the financial service with the help of technology,
especially internet, has helped in reducing costs of financial institutions as well as
clients/customers who use the service at anytime and from virtually anywhere with access
to an internet connection.
Uppal (2009) in his study found that in the post-LPG (Liberalization, Privatization and
Globalization) era and Information Technology (IT) era, transformation in Indian banks
is taking place with different parameters and the contours of banking services are
dynamically altering the face of banking, as banks are stepping towards e-banking from
traditional banking. On the basis of five-point likert-type scale, this paper empirically
analyzes the quality of e-banking services in the changing environment. With different
statistical tools such as weighted average method and ranking, the paper concludes that
most of the customers of e-banks are satisfied with the different e-channels and their
services, but the lack of awareness is a major obstacle in the spread of e-banking services.
The paper also suggests some measures to make e-banking services more effective in the
future.
Kuisma et.al (2006) conducted a research to identify the reasons for consumer resistance
to Internet banking. The special interest is to explore resistance among those bank
28
customers who already have valid contracts for Internet banking but prefer to pay their
bills via ATM. The objective is to identify those characteristics generating resistance to
Internet banking and their connections to values of individuals. In order to achieve the
objective, 30 Finnish bank customers were interviewed in-depth using the means-end
approach and the laddering interviewing technique. The findings indicate both functional
and psychological barriers arising from service-, channel-, consumer- and
communication-related means-end chains inhibiting Internet banking adoption. The
contribution of the paper lies in achieving a more profound understanding of consumer
resistance to Internet banking, and further, in offering suggestions and practical advice
for service providers' decision-making.
The perusal of review of literature revealed that the internet banking had been studied in
relation to various aspects like its adoption, growth, development and expectations of the
customers. But no study has been conducted in relation to the Net Banking service
provided by IndusInd Bank.
29
CHAPTER 3
NEED, SCOPE AND OBJECTIVES OF THE STUDY
30
NEED, SCOPE AND OBJECTIVES OF THE STUDY
3.1 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 IndusInd Bank. This gap had been identified and it
had led to the present research being undertaken.
3.2 SCOPE OF THE STUDY
The area where the study has been conducted was Ludhiana.
3.3 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 IndusInd Bank.
3. To know the cause why customers are using or not using Net banking service.
4. To the confidence of the customers of IndusInd Bank in using these services.
5. To study the popularity of the Net banking service among the customers of HDFC
Bank.
31
CHAPTER 4RESEARCH
METHODOLOGY
32
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.
According to D. Slesinger and M. Stephenson research may be defined as “the
manipulation of things, concepts or symbols for the purpose of generalizing to extend,
correct or verify knowledge, whether that knowledge aids in the construction of theory or
in the practice of an art”. Thus it is original contribution to the existing stock of
knowledge of making for its advancement. In short, the search of knowledge through
objective and systematic method of finding solution to a problem is research.
4.1 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 was descriptive in nature.
Descriptive research:
The research undertaken was a descriptive research as it was concerned with specific
33
predictions, with narration of facts and characteristics concerning net banking service
provided by IndusInd Bank.
4.2. SAMPLING DESIGN
The following factors have been decided within the scope of sample design:
4.2.1 Universe of study: Universe of the study means all the persons who are the
customers of IndusInd Bank in the world.
Theoretical: It covered all the individuals who are the customers of IndusInd
Bank in the world.
Accessible: It covered all the individuals who are the customers of IndusInd
Bank in India who are within our reach. In this study accessible population was
customers of IndusInd Bank in India.
4.2.2 Sample Size: A sample of minimum respondents was selected from various areas
of Ludhiana. An effort was made to select respondents evenly. The survey was carried
out on 100 respondents.
4.2.3 Sample Unit: In this project sampling unit consisted of the various individuals who
had their bank accounts with IndusInd Bank.
4.2.4 Sampling Technique: For the purpose of research convenient sampling techinque
was used.
4.2.5 Sampling Frame: It consisted of various sources from where information about the
respondent is extracted. Mainly personal links and employees of IndusInd Bank,
Ludhiana are used for getting information about the respondents.
4.3 DATA COLLECTION AND ANALYSIS
34
4.3.1 DATA COLLECTION
There were two types of data sources used in this research. These were
4.3.1.1. 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.
4.3.1.2. 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 IndusInd Bank to know their opinions regarding the Net
Banking service provided by IndusInd Bank.
4.3.2 DATA ANALYSIS
4.3.2.1 Tools Of Presentation:
It means what all tools are used to present the data in a meaningful way so that it
becomes easily understandable. In this research tables and graphs were used for
presenting the data.
4.3.2.2 Tools Of Analysis
In this research the tools of analysis used were percentages. SPSS software were used to
conduct Friedman Anova, Reliability analysis and Factor Analysis.
4.4 LIMITATIONS OF THE STUDY
The following were the limitations of the study:
35
1. Non representative sample: In this research project a sample survey was
conducted. A sample of 100 respondents was 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 was very limited. It is very difficult to
have in detail study on project work due to limited time period. The period of 4 to
6 weeks is not enough for the proper study of the project.
3. Inadequate data: The data provided was not up to the mark due to which we
faced problems in our research.
4. Lack of scientific method: The lack of scientific training in methodology of
research was great impediment in our research program, which led to the delay of
research.
5. Biasness in the responses: The answers provided by the respondents suffer from
biasness.
6. Cost Factor: It was not possible to conduct extensive research due to paucity of
funds.
36
CHAPTER 5
DATA ANALYSIS AND INTERPRETATION
37
DATA ANALYSIS AND INTERPRETATION
Statement 5.a Demographic Profile Of The Respondents
Table 5.a Demographic Profile of the Respondents
38
39
DemographicsNumber of
Respondents
Percentage Of
Respondents
Age:
Below 20 yrs
20 – 35 yrs
35 – 50 yrs
50 – 65 yrs
65 yrs and above
1
33
40
17
9
1 %
33 %
40 %
17 %
9 %
TOTAL 100 100 %
Qualification:
Undergraduate
Graduate
Post Graduate
5
65
30
5 %
65 %
30 %
TOTAL 100 100 %
Occupation:
Businessman
Housewife
Self Employed
Service
Student
Professional
32
7
17
27
4
13
32 %
7 %
17 %
27 %
4 %
13 %
TOTAL 100 100 %
Annual Income:
Less than Rs 2 Lakhs
Rs. 2 – 6 Lakhs
Rs. 6 – 10 Lakhs
Rs. 10 – 15 Lakhs
Rs. 15 – 20 Lakhs
Rs. 20 Lakhs and above
12
27
39
17
5
0
12 %
27 %
39 %
17 %
5 %
0 %
TOTAL 100 100 %
Analysis and interpretation:
From the data collected it was found majority of respondents that is 40%
belonged to the age of 35 to 50 years, followed by the age group of 20 to 35 years.
It was found that the majority of the respondents were graduates. It was found
that the majority of the respondents were from the business class followed by the
service class and self employed people. It was found that the majority of the
respondents fell between the income group of Rs 6 to Rs 10 lakhs, followed by
income group between Rs 2 to Rs 6 lakhs.
Thus it can be concluded that the majority of the respondents were knowledgeable
and were well informed about the banking services.
Statement 1: Time period since the IndusInd Bank’s services are being availed
Table 5.1 Time period since the IndusInd Bank’s services are being availed
Time Period Number of respondents Percentage of
40
respondents
Less Than 2 years
2 – 5 years
5 – 10 years
More Than 10 years
9
18
31
42
9 %
18 %
31 %
42 %
Total 100 100 %
Figure 5.1 Time period since the IndusInd Bank’s services are being availed
Analysis and interpretation:
From the data collected, it can be that the majority of the respondents that is 42% of the
respondents have been IndusInd Bank’s customer for more than 10 years, followed by 5
to 10 years with 31% of respondents.
It can be concluded that the majority of the respondents have been IndusInd Bank’s
customer for more than 10 years.
Statement 2: Products and services of IndusInd Bank availed by the customers
Table 5.2: Products and services of IndusInd Bank availed by the customers
Products and services Number of respondents Percentage of respondents
41
Loans
Deposit Accounts
Credit Cards
Debit Cards
Forex Services
ATM
NRI Services
49
63
27
19
22
24
13
22.58 %
29.03 %
12.44 %
8.75 %
10.13 %
11.05 %
6.00 %
Total 217* 100 %
Figure 5.2: Products and services of IndusInd Bank availed by the customers
Analysis and interpretation
It was found that majority of the respondents that is 29% availed deposit accounts,
followed by loans, credit cards, ATM’s and forex services with 23%, 12%, 11% and 10%
respectively.
It can be inferred that that majority of the respondents availed the deposit accounts
among the various products and services offered by the IndusInd Bank.
* The total is more than sample size because of multiple responses.
Statement 3: Perception about the products and services offered by IndusInd Bank
Table 5.3: Perception about the products and services offered by IndusInd Bank
42
Perception Number of respondents Percentage of respondents
Lucrative
Non lucrative
Can’t say
80
5
15
80 %
5 %
15 %
Total 100 100 %
Figure 5.3: Perception about the products and services offered by IndusInd Bank
Analysis and interpretation
From the data collected, it was found that the majority of the respondents that is 85% said
that the products and services offered by IndusInd Bank were lucrative. While just 5% of
the respondents said that the products and services offered were non lucrative and the
remaining 15% were not able form any opinion.
It can be inferred that the majority of the felt that the products and services offered by
IndusInd Bank were lucrative.
Statement 4: Ways to access to IndusInd Bank
Table 5.4: Ways to access to IndusInd Bank
Ways Number of Respondents Percentage of
43
Respondents
Net Banking
Phone Banking
One View
ATM
Branch Network
Email Statement
Insta Alert
53
28
7
29
76
34
3
23.05 %
12.18 %
3.05 %
12.60 %
33.04 %
14.78 %
1.30 %
Total 230* 100 %
Table 5.4: Ways to access to IndusInd Bank
Analysis and interpretation:
It was found from the data collected that 33% of the respondents accessed the bank
through Branch network. About 23% of the respondents accessed the bank through net
banking followed by email statements with about 15%. Marginally 1% and 3% of the
respondents used insta alert and one view to access the bank.
It was inferred that majority of the respondents accessed the bank through branch network.
* The total is more than sample size because of multiple responses.
Statement 5: Awareness regarding Net Banking Service provided by IndusInd Bank
Table 5.5: Awareness regarding Net Banking Service provided by IndusInd Bank
44
Awareness Number of respondents Percentage of respondents
Yes
No
96
4
96 %
4 %
Total 100 100 %
Table 5.5: Awareness regarding Net Banking Service provided by IndusInd Bank
Analysis and interpretation:
From the data collected it was found that majority of the respondents that is 96% were
aware of the net banking service provided by IndusInd Bank while just 4% of the
respondents were not aware of the same service.
It was concluded that majority of the respondents of the respondents were aware of the
net banking service.
Statement 6: Accessibility of Net Banking Facility provided by IndusInd Bank
Table 5.6: Accessibility of Net Banking Facility provided by IndusInd Bank
45
Accessibility Number of respondents Percentage of respondents
Yes
No
81
19
81 %
19 %
Total 100 100 %
Figure 5.6: Accessibility of Net Banking Facility provided by IndusInd Bank
Analysis and interpretation:
Of the data collected it was found that about 81% of the respondents had accessed the net
banking service provided by the IndusInd Bank while 19% of the respondents said that
they had not accessed the same.
It can be inferred that the majority of the respondents had availed the net banking service.
Statement 7: Net Banking services of IndusInd Bank availed
Table 5.7: Net Banking services of IndusInd Bank availed
Services Number of Percentage of
46
respondents respondents
View accounts balances & statements
Transfer funds between accounts
Create Fixed Deposit online
Request a demand draft
Pay bills
Order a cheque book
Request stop payment on a cheque
44
32
8
5
29
16
11
30.39 %
22.07 %
5.51 %
3.44 %
20.00 %
11.03 %
7.56 %
Total 145* 100 %
Figure 5.7: Net Banking services of IndusInd Bank availed
Analysis and interpretation:
It was found that the majority of the respondents that is 30% of the respondents used the
net banking service for viewing accounts and balances, followed by 22% and 20% of the
respondents who availed the same for transferring the funds between accounts and for
paying the bills respectively. Marginally 3% of the respondents used the same service to
request a demand draft.
It can be inferred that the majority of the respondents used the net banking service
provided by IndusInd Bank to view their accounts and balances.
* The total is more than sample size because of multiple responses.
Statement 8: Reasons for which Net Banking service should be availed
Table 5.8: Reasons for which Net Banking service should be availed
47
Reasons Mean Rank Ranks
Convenience 3.12 1
Curiosity 5.07 7
Low cost 4.41 5
Quick service 3.33 2
Maintenance 3.46 3
Safety 4.48 6
User friendly 4.13 4 1 being the most important and 7 being the least important
Analysis and interpretation:
Scores are significantly different on The Friedman two way ANOVA test (p<0.001) for
the listed 7 reasons due to which Net Banking service should be availed. The first rank
being the most important was given to convenience and the last rank that is 7 was given
to curiosity.
It can be concluded that majority of the respondents regarded convenience as the most
important reason for which Net Banking service should be availed and curiosity as the
least important reason for the same.
Statement 9: Frequency of using the Net Banking service in a month
Table 5.9: Frequency of using the Net Banking service in a month
48
Frequency Number of respondents Percentage of respondents
Less than once
1 to 3 times
3 to 8 times
8 to 15 times
More than 15 times
28
39
10
4
0
34.56 %
48.14 %
12.34 %
4.96 %
0 %
Total 81 100 %
Figure 5.9: Frequency of using the Net Banking service in a month
Analysis and interpretation:
It was found that the majority of the respondents that is 48 % used the Net Banking
service one to three times in a month while 35 % said that they used the same service less
than once in a month. None of the respondents said that they availed the same facility
more than 15 times in a month.
It can be inferred that the majority of the respondents availed the Net Banking service
one to three times in a month.
Statement 10 : Difficulties faced while using the Net Banking service of IndusInd Bank
Table 5.10 : Difficulties faced while using the Net Banking service of IndusInd Bank
Difficulties Number of Percentage of
49
respondents respondents
Logging in to your account
Making transactions
Safety issues
Unable to understand webpages
Regularly changing the IPIN and Password
9
27
32
6
7
11.11 %
33.33 %
39.50 %
7.40 %
8.64 %
Total 81 100 %
Figure 5.10 : Difficulties faced while using the Net Banking service of IndusInd
Bank
Analysis and interpretation:
It was found that the majority of the respondents that is 40% said that safety issues was
the major difficulty that they faced while using the Net Banking service, followed by
34% of the respondents who felt that making transactions with the bank through Net
Banking was difficult. However, 8% of the respondents faced difficulty in understanding
the webpages and 7% of the respondents felt that changing the IPIN and Password
regularly was difficult.
It was inferred that the majority of the respondents regarded the safety issues as the major
difficulty that they faced while using the Net Banking service.
Statement 11: Frequency of visiting the IndusInd Bank branch
Table 5.11: Frequency of visiting the IndusInd Bank branch
Frequency Number of respondents Percentage of respondents
50
Everyday
Alternate days
Once in a week
Twice in a month
Thrice in a month
Twice in a week
Once in a week
21
26
18
9
5
14
7
21 %
26 %
18 %
9 %
5 %
14 %
7 %
Total 100 100 %
Figure 5.11 Frequency of visiting the IndusInd Bank branch
Analysis and interpretation:
It was found that the majority of the respondents that is 26% said that they visited the
bank branch every alternate day, followed by 21% of the respondents who visited the
bank everyday. Only 5% of the respondents visited the bank branch thrice in a month.
It can be inferred that the majority of the respondents said that they visited the bank
branch every alternate day.
Statement 12: The main reason for which the bank branch is typically visited
Table 5.12: The main reason for which the bank branch is typically visited
Reasons Number of Percentage of
51
respondents respondents
To make a deposit
To get a advice for investment purpose
To inquire about a balance
To withdraw a cheque
To order a cheque book
To transfer funds between accounts
31
13
7
23
15
11
31 %
13 %
7 %
23 %
15 %
11 %
Total 100 100 %
Figure 5.12: The main reason for which the bank branch is typically visited
Analysis and interpretation:
It was found that the majority of the respondents that is 31% said that the main reason of
visiting the bank is to make a deposit, followed by 23% who said that they visited the
bank branch typically to withdraw a cheque. Of the total only 7% and 11% of the
respondents visited the bank to inquire about a balance and to transfer funds between
accounts respectively.
It can be inferred that the majority of the respondents said that the main reason of visiting
the bank is to make a deposit.
Statement 13: Agreement regarding Net Banking service being better than traditional
banking
52
Table 5.13: Agreement regarding Net Banking service being better than traditional
banking
Agreement Number of respondents Percentage of respondents
Yes
No
64
36
64 %
36 %
Total 100 100 %
Figure 5.13: Agreement regarding Net Banking service being better than traditional
banking
Analysis and interpretation:
Of the data collected it was found that the majority of the respondents that is 64%
respondents agreed that net banking is better than the traditional banking while 36% of
the respondents disagreed with the statement.
It can be inferred that the majority of the respondents felt that the net banking service was
better than traditional banking.
Statement 14: Reasons due which Net Banking service is not popularly used
Table 5.14: Reasons due which Net Banking service is not popularly used
53
Reasons Mean Rank Rank
Net banking web pages are confusing 4.40 5
Use of computer or internet is difficult 4.53 6
Neither friends nor relatives use internet 4.03 4
Net banking facility is not secured 3.43 2
It is more expensive than going to a branch 4.76 7
Net banking offers no receipts on payments 3.28 1
Net banking is not reliable 3.57 3
1 being the most important and 7 being the least important
Analysis and interpretation:
Scores are significantly different on The Friedman two way ANOVA test (p<0.001) for
the listed 7 reasons due to which Net Banking service is not popularly being used. The
Net banking offers no receipts on payments was ranked first that is the most important
reason while it is more expensive than going to a branch was given the last rank that is
seven.
It can be concluded that the majority of the respondents regarded that the most important
reason for which Net Banking service is not being used popularly was that it does not
offer receipts on payments and the least important reason was that it is more expensive
than going to a branch.
Statement 15: Raters agreement
Reliability Statistics
54
Table 5.20.1: Cronbach's Alpha
Cronbach's Alpha N of items
0.716 10
Table 5.20.2: KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy .725
Bartlett's Test of
SphericityApprox. Chi-Square 248.386
Df 45
Sig. .000
Table 5.15.3: Total Variance Explained
ComponentInitial Eigenvalues
Total % of Variance Cumulative %
1 3.116 31.157 31.157
2 1.723 17.226 48.382
3 1.080 10.798 59.181
4 .992 9.922 69.103
5 .783 7.827 76.930
6 .686 6.859 83.788
7 .525 5.254 89.043
8 .465 4.648 93.691
9 .369 3.690 97.381
10 .262 2.619 100.000
Table 5.15.4: Component Matrix
55
COMPONENT
1 2 3
Convenience .822 -.294 .050
Safety .748 -.369 -.069
Functionality .685 -.375
Necessity .781 -.193 -.207
Language .461 .383 -.163
Physical .396 .499 .467
Access .556 -.061 .649
Trans_costs .190 .345 .219
Service .207 .677 -.419
Safety_feature .210 .695Extraction Method: Principal Component Analysis.
a. 3 components extracted.
Table 5.15.5: Rotated Component Matrix
COMPONENT
1 2 3
Convenience .836 -.079 .242
Safety .826 -.100 .086
Functionality .712 .317 -.065
Necessity .820 .123 .050
Language .302 .509 .188
Physical .054 .280 .737
Access .371 -.241 .734
Trans_costs .226 .390
Service .823
Safety_feature -.085 .622 .366
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
56
Table 5.14.6: Factor Analysis
Variables Statements Factor Loadings
ConvenienceNet Banking is easy and
convenient to use..836
Safety
Transactions conducted through
Net Banking are safe and
secure.
.826
FunctionalityThe web pages function
properly..712
NecessityNet Banking service is a
necessity..820
Language
The website pages are available
in the languages you
understand.
.509
Physical
Net Banking facility reduces
the frequency of customer’s
visit to a physical bank.
.737
AccessAccess to accounts 24x7 is
important to you..734
Trans_costsThe transaction costs are lesser
in case of Net Banking service..390
Service
Net Banking service provided
by IndusInd Bank is better than
the online services provided by
others banks.
.823
Safety_feature
IndusInd Bank is taking
adequate steps to check the
security of its customers.
.622
57
Table 5.15.7 Service Quality
Factor Label Statements Factor Loadings
Service Quality
Net Banking is easy and
convenient to use..836
Transactions conducted through
Net Banking are safe and secure..826
The web pages function
properly..712
Net Banking service is a
necessity..820
Table 5.15.8: Adequate Mechanism
Factor Label Statements Factor Loadings
Adequate Mechanism
The website pages are available
in the languages you understand..509
Net Banking service provided by
IndusInd Bank is better than the
online services provided by
others banks.
.823
IndusInd Bank is taking
adequate steps to check the
security of its customers.
.622
Table 5.15.9 Accessibility
58
Factor Label Statements Factor Loadings
Accessibility
Net Banking facility
reduces the frequency of
customer’s visit to a
physical bank.
.737
Access to accounts 24x7 is
important to you..734
The transaction costs are
lesser in case of Net
Banking service.
.390
Analysis and interpretation:
The factor analytic methodology had been used to analyze the net banking service based
on responses received from the 100 respondents to the survey questionnaire. The cache of
factor analytic methods is quite a rich and rigorous one. The Principal Components
Analysis (PCA) had been used to explore and confirm the inter-relatedness between the
occurrences of variables pertaining to net banking.
The correlation matrix of the ten variables on net banking had been subjected to the PCA.
It provided a set of components, which explained variances in descending order of total
variance of a set of variables pertaining to a domain of variables under study.
Theoretically, it extracted as many components as is the number of variables.
The number of principal components to be retained has been decided based on Kaiser’s
criterion of Eigen value>1 and Bartlett’s test. The Bartlett’s test of significance led to
acceptance of ten significant principal components.
The PCA with varimax rotation method has been used to maximize the sum of squared
loading of each factor extracted in turn. It explained more variance than the loadings
obtained from any other method of factoring. The factors loaded by variables having
significant loadings of the magnitude of 0.40 and above have been interpreted.
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The scales of measurement were tested using Cronbach α reliability test. Cronbach α was
0.5, which is satisfactory level of construct validity. The correlations between the factors
were then examined which revealed the existence of correlation between certain factors.
This perusal suggested the use of factor analysis to investigate any distinct underlying
factors and to reduce the redundancy of certain barriers indicated in the correlation
matrices. Principal Component Analysis was chosen as the method of extraction in order
to account for maximum variance in the data using minimum number of factors.
The default solution (eigen values>1) resulted in extraction of four factors.
The factor 1 variables, convenience, safety, functionality, necessity are labeled as
“Service Quality”. Factor 2 was named as “Adequate Mechanism” including: language,
service and safety feature variables. Factor 3 was named as “Usability” including
physical, access and trans cost.
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CHAPTER 5
FINDINGS OF THE STUDY
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FINDINGS OF THE STUDY
The findings of the study were as follows:
1. The majority of the respondents have been IndusInd Bank’s customer for more
than 10 years.
2. The majority of the respondents availed the deposit accounts among the various
products and services offered by the IndusInd Bank.
3. The majority of the felt that the products and services offered by IndusInd Bank
were lucrative.
4. The majority of the respondents accessed the bank through branch network.
5. The majority of the respondents of the respondents were aware of the net banking
service.
6. The majority of the respondents have availed the net banking service.
7. The majority of the respondents used the net banking service provided by
IndusInd Bank to view their accounts and balances.
8. The majority of the respondents regarded convenience as the most important
reason for which Net Banking service should be availed and curiosity as the least
important reason for the same.
9. The majority of the respondents availed the Net Banking service one to three
times in a month.
10. The majority of the respondents faced the safety issues was the major difficulty
that they faced while using the Net Banking service.
11. The majority of the respondents said that they visited the bank branch every
alternate day.
12. The majority of the respondents said that the main reason of visiting the bank is to
make a deposit.
13. The majority of the respondents felt that the net banking service was better than
traditional banking.
14. The majority of the respondents regarded that the most important reason for
which Net Banking service is not being used popularly was that it does not offer
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receipts on payments and the least important reason was that it is more expensive
than going to a branch.
15. The majority of the respondents agreed that net banking is convenient and safe to
use and felt that transaction costs are lesser in case of net banking service. While
majority of the respondents disagreed that net banking facility reduces the
frequency of customer visits to a physical bank.
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CHAPTER 7
CONCLUSION
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CONCLUSION
7.1 CONCLUSION
The introduction of new technology has been changing the attire of banking. The brick
and mortar banking is slowly giving place to click of the mouse banking. Technology is
aiding globalization and integration of financial markets across the globe. Customer’s
expectations for new products and alternatives delivery channels have been rising. Banks
are under pressure to offer today, what customers would be expecting tomorrow. Thanks
to innovations and spread of new technology, banks today offer the customer a choice to
conduct his business across the counter, over phone or via a computer. The Rangarajan
Committee (1988) report is the first step for the introduction of computers. The Saraf
Committee (1994) on Technology issues relating to payments, cheques clearing and
securities settlements made several recommendations to improve the quality of service.
The introduction of new instruments such as ATM, retail Electronic Funds Transfer
(EFT) and Electronic Clearing Services (ECS) have all helped in developing an effective,
efficient and speedy payment and settlement systems.
In literature, the major emphasis have laid on significant innovation and investment is
under way that could lead to very rapid expansion in fully electronic business to business
and consumer to consumer payments in near time. While the pace of change in these
market makes it difficult to determine, eventually these innovations will generate
substantial effeciencies in retail payment system. Bank regulators are paying significant
attention to appropriate risk management of new technology. Evidence reveals a sense of
urgency about the adoption of new technology and reflects substantial competitive
pressure to act quickly.
The objective of the study was to study was to comprehend the Net Banking service
provided by IndusInd Bank. The research was descriptive in nature. The universe of the
study was the customers of the IndusInd Bank. The survey was carried out on 100
respondents. In this research for data analysis tools used were tables and graphs. Majority
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of the respondents were aware of the Net Banking service provided by the bank and
availed the various services offered through net banking. Majority of the respondents felt
that net banking facility have enabled the customers to perform various banking
transactions online. It is hoped that the survey findings will have some useful
applications.
7.2 RECOMMENDATIONS
Following are the recommendations of the study:
1. The bank should make some efforts to familiarize the customers to various
services through demonstrations.
2. The bank should adopt more upgraded techniques to make their customer feel
more secure while accessing their accounts.
3. Effective awareness campaigns should be undertaken by the banks to make their
customers more aware of net banking service.
4. The bank should make a effort to provide a platform from where the customers
can access different accounts at single time without extra charge.
5. The bank should take steps to create a trust in mind of customers towards security
of their accounts.
6. The IndusInd Bank should introduce more services which can be accessed
through Net Banking like advice on investment, TDS, etc.
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