CHAPTER 1

INTRODUCTION TO THE TOPIC

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Digital Banking

Digital Banking (or Digital banking) means any user with a personal
computer and a browser can get connected to his bank -s website to perform any of the
virtual banking functions. In internet banking system the bank has a centralized database
that is web-enabled. All the services that the bank has permitted on the internet are
displayed in menu. Any service can be selected and further interaction is dictated by the
nature of service. Once the branch offices of bank are interconnected through terrestrial or
satellite links, there would be no physical identity for any branch. It would a borderless
entity permitting anytime, anywhere and anyhow banking.

The delivery channels include direct dialup connections, private networks,

public networks, etc. with the popularity of computers, easy access to Internet and World
Wide Web (WWW), Internet is increasingly used by banks as a channel for receiving
instructions and delivering their products and services to their customers. This form of
banking is generally referred to as Internet Banking, although the range of products and
services offered by different banks vary widely both in their content and sophistication.

Meaning of Digital Banking or Digital banking

E-bank is the electronic bank that provides the financial service for the individual client by
means of Internet.

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In simple terms, it means banking without involving any physical exchange of money,
instead carrying on transactions electronically, from one account to another, using the
internet.

Digital banking can also be defined as the automated delivery of new and traditional
banking products and services directly to customers through electronic, interactive
communication channels. Digital banking includes the systems that enable financial
institution customers, individuals or businesses, to access accounts, transact business, or
obtain information on financial products and services through a public or private network,
including the internet. Customers access Digital banking services using an intelligent
electronic device, such as a personal computer (PC), personal digital assistant (PDA),
automated teller machine (ATM), kiosk, or Touch Tone Telephone.
Electronic banking is conducted by using Automatic Teller Machines (ATMs), telephones
(not via the Internet) or debit cards. Debit cards look like a credit card. But unlike a credit
card, using a debit card removes funds from your bank account immediately.
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Various Products and Services provided by Digital banking
PRODUCTS SERVICES

ATMs Bill Payment Services

Credit Cards Fund Transfer

Debit Cards Railway Pass

Smart Cards Investing through Digital banking

E-Cheques Recharging prepaid phones

Shopping

Online Movie Tickets

Credit Cards

The plastic credit card with a magnetic strip many people carry in their wallets or purses is
the end result of a complex banking process. Holders of a valid credit card have the
authorization to purchase goods and services up to a predetermined amount, called a credit
limit. The vendor receives essential credit card information from the cardholder, the bank
issuing the card actually reimburses the vendor, and eventually the cardholder repays the

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bank through regular monthly payments. If the entire balance is not paid in full, the credit
card issuer can legally charge interest fees on the unpaid portion.

Individual banking institutions have their own policies when it comes to credit card
applications. Customers may seek either a secured or unsecured credit card, depending on
their individual repayment histories (credit rating). A secured credit card requires the
applicant to deposit an amount of cash equivalent to the credit limit desired.

An unsecured credit card, on the other hand, is generally issued to those who have a good
credit history and have demonstrated an ability to repay the accrued debt on time. Credit
limits are determined on an individual basis, and may be raised or lowered based on
performance. An unsecured credit card is essentially a pre-approved loan, with interest
rates higher than a similar personal bank loan. The main benefit of any credit card is instant
access to more cash than you may have on hand.

DEBIT Card

A debit card is a plastic card issued by banks to customers. The card allows instant
purchase, removing the correct balance from the users attached bank account. Debit cards
are distinct from credit cards in that they allow purchase based on available funds in the
account to be deducted immediately, instead of by using a line of credit that can be repaid
at a later time.

Debit cards have the ability to purchase items at stores that have automated debit or credit
card machines.

Most forms of debit card require a personal identification number (PIN) as a security
feature. In online purchases, the PIN is usually not required, but users will often need to
enter the three or four digit security code listed on the back of the card. Additional safety

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measures common for debit cards include a photograph of the cards owner on the front, or
an electronically reproduced customer signature imprinted on the card.

While the security features hold up well for in-person transactions, they leave debit card
users vulnerable for online theft. If a thief steals your wallet, they will likely have all of the
information they need to use your debit card for Internet transactions. If you have a dual
credit/debit card, they may also be able to use it in stores that do not require a PIN for
credit use. If you discover your card missing, or notice suspicious charges to your account,
contact your bank immediately.

Another peril debit card users face is accidental charges. If you have a two or more linked
bank accounts, such as checking and savings, you may sign up to have money transferred
from one to the other in case of overdrawing your account.

Rules regarding the use of debit cards vary from country to country and can impact their
popularity. In India, the merchant can be charged for each transaction involving a debit
purpose, leading to many shops banning their use.

Smart Cards

A smart card is any card that has an integrated circuit on it. A smart card lacks batteries, as
the size of a card is too small to mount all but the smallest of special-purpose batteries,
which are currently too expensive. Because it has no power on its own, a smart card must
be introduced to a smart card reader to temporarily give it power for the purpose of reading
the data contained therein.

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The smart card has a variety of applications, including payment cards, identification cards,
access-control cards, cards for public transit, insurance cards, and the SIM cards found in
cell phones.

A smart card usually contains an embedded 8-bit microprocessor (a kind of computer

chip). The microprocessor is under a contact pad on one side of the card. Think of the
microprocessor as replacing the usual magnetic stripe present on a credit card or debit card.
The microprocessor on the smart card is there for security. The host computer and card
reader actually "talk" to the microprocessor. The microprocessor enforces access to the
data on the card. The chips in these cards are capable of many kinds of transactions. For
example, a person could make purchases from their credit account, debit account or from a
stored account value that's reload able. The enhanced memory and processing capacity of
the smart card is many times that of traditional magnetic-stripe cards and can accommodate
several different applications on a single card. It can also hold identification information,
which means no more shuffling through cards in the wallet to find the right one -- the
Smart Card will be the only one needed.

E - Cheques
An E-Cheque is the electronic version or representation of paper cheque.
The Information and Legal Framework on the E-Cheque is the same as that of the
paper cheques.
It can now be used in place of paper cheques to do any and all remote transactions.

An E-cheque work the same way a cheque does, the cheque writer "writes" the e-Cheque
using one of many types of electronic devices and "gives" the e-Cheque to the payee
electronically. The payee "deposits" the Electronic Cheque receives credit, and the payee's
bank "clears" the e-Cheque to the paying bank. The paying bank validates the e-Cheque
and then "charges" the check writer's account for the check

SERVICES PROVIDED BY DIGITAL BANKING

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1. Bill payment service
You can facilitate payment of electricity and telephone bills, mobile phone, credit card and
insurance premium bills as each bank has tie-ups with various utility companies, service
providers and insurance companies, across the country. To pay your bills, all you need to
do is complete a simple one-time registration for each biller. You can also set up standing
instructions online to pay your recurring bills, automatically. Generally, the Bank does not
charge customers for online bill payment.

2. Fund transfer
You can transfer any amount from one account to another of the same or any another bank.
Customers can send money anywhere in India. Once you login to your account, you need
to mention the payees account number, his bank and the branch. The transfer will take
place in a day or so, whereas in a traditional method, it takes about three working days.
HDFC Bank says that online bill payment service and fund transfer facility have been their
most popular online services.

3. Credit card Customers

With Internet banking, customers can not only pay their credit card bills online but also get
a loan on their cards. If you lose your credit card, you can report lost card online.

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4. Railway pass
This is something that would interest all the aam janta. Indian Railways has tied up with
HDFC bank and one can now make his/her railway pass for local trains online. The pass
will be delivered to you at his doorstep. But the facility is limited to Mumbai, Thane,
Nasik, Surat and Pune.

5. Investing through Internet banking

You can now open an FD online through funds transfer. Now investors with interlinked
Demat account and bank account can easily trade in the stock market and the amount will
be automatically debited from their respective bank accounts and the shares will be
credited in their Demat account. Moreover, some banks even give you the facility to
purchase mutual funds directly from the online banking system. Nowadays, most leading
banks offer both online banking and Demat account. However if you have your Demat
account with independent share brokers, then you need to sign a special form, which will
link your two accounts.
6. Recharging your prepaid phone
Now just top-up your prepaid mobile cards by logging in to Internet banking. By just
selecting your operator's name, entering your mobile number and the amount for recharge,
your phone is again back in action within few minutes.

7. Shopping
With a range of all kind of products, you can shop online and the payment is also
made conveniently through your account. You can also buy railway and air tickets through
Internet banking.

BENEFITS OF DIGITAL BANKING

For Banks

Price- In the long run a bank can save on money by not paying for tellers or for
managing branches. Plus, it's cheaper to make transactions over the Internet.

Customer Base- the Internet allows banks to reach a whole new market- and a well
off one too, because there are no geographic boundaries with the Internet. The
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 Internet also provides a level playing field for small banks who want to add to
their customer base.

Efficiency- Banks can become more efficient than they already are by providing
Internet access for their customers. The Internet provides the bank with an almost
paper less system.

Customer Service and Satisfaction- Banking on the Internet not only allow
the customer to have a full range of services available to them but it also
allows them some services not offered at any of the branches. The person
does not have to go to a branch where that service may or may not be offer.
A person can print of information, forms, and applications via the Internet
and be able to search for information efficiently instead of waiting in line
and asking a teller. With more better and faster options a bank will surely
be able to create better customer relations and satisfaction.

Image- A bank seems more state of the art to a customer if they offer Internet
access. A person may not want to use Internet banking but having the service
available gives a person the feeling that their bank is on the cutting image.

For Customers

Bill Pay- Bill Pay is a service offered through Internet banking that allows the
customer to set up bill payments to just about anyone. Customer can select the
person or company whom he wants to make a payment and Bill Pay will withdraw
the money from his account and send the payee a paper check or an electronic
payment

Other Important Facilities- E- banking gives customer the control over nearly every
aspect of managing his bank accounts. Besides the Customers can, Buy and Sell
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 Securities, Check Stock Market Information, Check Currency Rates, Check
Balances, See which checks are cleared, Transfer Money, View Transaction
History and avoid going to an actual bank. The best benefit is that Internet banking
is free. At many banks the customer doesn't have to maintain a required minimum
balance. The second big benefit is better interest rates for the customer.

DIGITAL BANKING STRATEGIES

Though Digital banking offers vast opportunities, yet even less than one in three banks
have an Digital banking strategy in place. According to a study, less than 15 percent of
banks with transactional websites will realize profits directly attributable to those sites.
Hence, banks must recognize the seriousness of the challenge ahead and develop a strategy
that will enable them to leverage the opportunities presented by the Internet.

No single Digital banking strategy is right for every banking company. But whether they
adopt an offensive or a defensive posture, they must constantly re-evaluate their strategy.
In the fast-paced e-economy, banks have to keep up with the constantly evolving business
models and technology innovations of the Internet space. Early e-business adopter like
Wells Fargo not only entered the Digital banking industry first but also showed flexibility
to change as the market developed. Not many banks have been as e-business-savvy. But
the pressure is now building for all banks to develop sound e-business strategies that will
attract and retain increasingly discriminating customers.

The major problem with the banks, which have already invested huge amounts in their
online initiatives, is that their online offerings remain unprofitable. Though banks have
enrolled some existing customers in their online programs, they are not getting customers
in large numbers. This has made banks wonder whether there is any value in the online
channel. Just enrolling customers for online banking may not be sufficient until and unless
they use the site actively. Banks must make efforts to increase their site usage by
customers and effectively co-ordinate the online channel with branches and call centers.
Then only they will be able to derive maximum value that includes cost reduction, cross-
selling opportunities, and higher customer retention.

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Customers have some rational reasons for staying offline. Some of these reasons include
usability features of the site, concerns about security and frequent complaints that signing
up is complicated and time-consuming. Banks can solve these problems by refocusing
investment on improving the site's basic functionality and user-friendliness, and avoiding
advanced features that most customers neither understand nor value. Developing advanced
features that appeal to a relatively small numbers of customers, creates far less value than
strengthening core capabilities and getting customers to use them. Banks must make
efforts to familiarize customers with their sites and show them how easy and efficient the
online channel is to use.

Integrating the online channel with the rest of the bank is another important issue that
banks must focus upon. This is important because nearly all the value of the online channel
is realized offline _ in cross sales completed in other channels and in cost reductions. An
actively used online channel should also serve as a medium to sell banking services for the
branch staff, the call center, and the relationship manager. Integrated channels working
together are far more effective than a group of channels working without any coordination.

To facilitate this integration, banks must formulate paths that people in various customer
segments are likely to take among the channels. The interactions in each channel can then
be worked around these paths. For example, a call center representative must work out
which channel(s) the customer used before coming to her, and which channel(s) the
customer is likely to visit next. Each channel must have entry and exit points that must
welcome customers and then send to other channels. Hence, the overall goal of banks is to
create a seamless multichannel experience.

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DIGITAL BANKING TRANSACTIONS

The introduction of new technologies has radically transformed banking transactions. In

the past, customers had to come physically into the bank branch to do banking transactions
including transfers, deposits and withdrawals. Banks had to employ several tellers to
physically make all those transactions. Automatic Teller Machines (ATMs) were then
introduced which allowed people to do their banking on their own, practically anytime and
anywhere. This helped the banks cut down on the number of tellers and focus on managing
money. The Internet then brought another venue with which customers could do banking,
reducing the need for ATMs. Online banking allowed customers to do financial
transactions from their PCs at home via Internet. Now, with the emergence of Wireless
Application Protocol (WAP) technology, banks can use the infrastructure and applications
developed for the Internet and move it to mobile phones. Now people no longer have to be
tied to a desktop PC to do their banking. The WAP interface is much faster and convenient
than the Internet, allowing customers to see account details, transaction details, make bill
payments, and even check credit card balance.

The cost of the average payment transaction on the Internet is minimum. Several studies
found that the estimated transaction cost through mobile phone is16 cents, a fully
computerized bank using its own software is 26 cents, a telephone bank is 54 cents, a bank
branch, $1.27, an ATM, 27 cents, and on the Internet it costs just 13 cents. As a result, the
use of the Internet for commercial transactions started to gain momentum in 1995. More
than 2,000 banks in the world now have transactional websites and the growth of online
lending solutions is making them more cost efficient. Recent developments are now
encouraging banks to target small businesses as a separate lending category online.

Banks are increasingly building payment infrastructure with various security mechanisms
(SSL, SET) because there is tremendous potential for profit, as more and more payments
will pass through the Internet. However, the challenge for banks is to offer a payments
back-bone system that will be open enough to support multiple payment instruments
(credit cards, debit cards, direct debit to accounts, e-checks, digital money etc.) and
scalable enough to allow for a stable service regardless of the workload.

The market for Electronic Bill Presentment and Payment (EBPP) is growing. According to
a study, 18 million households in the US are expected to pay their bills online by 2003
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compared to 2 million households in 2001. As more number of bill payers are getting
online, several banks are making efforts to find ways to meet the growing needs of EBPP.
Established banks can emerge as key online integrators of customer bills and can capitalize
on this high potential market. Growing with the popularity of EBPP is also the paying of
multiple bills at a single site known as bill aggregation. Offering online bill payment and
aggregation will increase the competitiveness and attractiveness of Digital banking
services and will allow banks to generate service-fee income from the billers.

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 CHAPTER 2
COMPANY PROFILE

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The business of the banks was initially confined to discounting of bills of exchange or
other negotiable private securities, keeping cash accounts and receiving deposits and
issuing and circulating cash notes. Loans were restricted to Rs. 1Lakh and the period of
accommodation confined to three months only. The security for such loans was public
securities, commonly called Company's Paper, bullion, treasure, plate, jewels, or goods 'not
of a perishable nature' and no interest could be charged beyond a rate of twelve per cent.
Loans against goods like opium, indigo, salt woolens, cotton, cotton piece goods, mule
twist and silk goods were also granted but such finance by way of cash credits gained
momentum only from the third decade of the nineteenth century. All commodities,
including tea, sugar and jute, which began to be financed later, were either pledged or
hypothecated to the bank. Demand promissory notes were signed by the borrower in favour
of the guarantor, which was in turn endorsed to the bank. Lending against shares of the
banks or on the mortgage of houses, land or other real property was, however, forbidden.
Indians were the principal borrowers against deposit of Company's paper, while the
business of discounts on private as well as salary bills was almost the exclusive monopoly
of individuals Europeans and their partnership firms. But the main function of the three
banks, as far as the government was concerned, was to help the latter raise loans from time
to time and also provide a degree of stability to the prices of government securities.

Punjab National Bank of India, the first Indian bank started only with Indian capital,
was nationalized in July 1969 and currently the bank has become a front-line banking
institution in India with 4525 Offices including 432 Extension Counters. The corporate
office of the bank is at New Delhi. Punjab National Bank of India has set up
representative offices at Almaty (Kazakhistan), Shanghai (China) and in London and a
full fledged Branch in Kabul (Afghanistan).

Punjab National Bank with 4497 offices and the largest nationalized bank is serving its
3.5 crore customers with the following wide variety of banking services:

Corporate banking
Personal banking
Industrial finance
Agricultural finance
Financing of trade
International banking

Punjab National Bank has been ranked 38th amongst top 500 companies by The
Economic Times. PNB has earned 9th position among top 50 trusted brands in
India.

Punjab National Bank India maintains relationship with more than 200 leading
international banks world wide. PNB India has Rupee Drawing Arrangements with 15
exchange companies in UAE and 1 in Singapore.

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 HISTORY OF THE BANK
Punjab National Bank (PNB) was registered on May 19, 1894 under the Indian
Companies Act with its office in Anarkali Bazaar Lahore. The Bank is the second largest
government-owned commercial bank in India with about 4,500 branches across 764
cities. It serves over 37 million customers. The bank has been ranked 248th biggest bank
in the world by Bankers Almanac, London. The bank's total assets for financial year
2007 were about US$60 billion. PNB has a banking subsidiary in the UK, as well as
branches in Hong Kong and Kabul, and representative offices in Almaty, Dubai, Oslo,
and Shanghai.
1895: PNB commenced its operations in Lahore. PNB has the distinction of being the
first Indian bank to have been started solely with Indian capital that has survived to the
present. (The first entirely Indian bank, the Ouch Commercial Bank, was established in
1881 in Faizabad, but failed in 1958.) PNB's founders included several leaders of the
Swadeshi movement such as Dyal Singh Majithia and Lala Har Kishen Lal,[1] Lala
Lalchand, Shri Kali Prosanna Roy, Shri E.C. Jessawala, Shri Prabhu Dayal, Bakshi
Jaishi Ram, and Lala Dholan Dass. Lala Lajpat Rai was actively associated with the
management of the Bank in its early years.

1904: PNB established branches in Karachi and Peshawar.

1940: PNB absorbed Bhagwan Dass Bank, a scheduled bank located
in Delhi circle.
1947: Partition of India and Pakistan at Independence. PNB lost its
premises in Lahore, but continued to operate in Pakistan.
1951: PNB acquired the 39 branches of Bharat Bank (est. 1942); Bharat
Bank became Bharat Nidhi Ltd.
1961: PNB acquired Universal Bank of India.
1963: The Government of Burma nationalized PNB's branch in
Rangoon (Yangon).
September 1965: After the Indo-Pak war the government of Pakistan
seized all the offices in Pakistan of Indian banks, including PNB's head
office, which may have moved to Karachi. PNB also had one or more
branches in East Pakistan (Bangladesh).
1960s: PNB amalgamated Indo Commercial Bank (est. 1933) in a
rescue.
1969: The Government of India (GOI) nationalized PNB and 13 other
major commercial banks, on July 19, 1969.
1976 or 1978: PNB opened a branch in London.
1986 The Reserve Bank of India required PNB to transfer its
London branch to State Bank of India after the branch was involved
in a fraud scandal.
1986: PNB acquired Hindustan Commercial Bank (est. 1943) in a rescue.
The acquisition added Hindustan's 142 branches to PNB's network.
1993: PNB acquired New Bank of India, which the GOI had
nationalized in 1980.
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 1998: PNB set up a representative office in Almaty, Kazakhstan.
2003: PNB took over Nedungadi Bank, the oldest private sector bank in
Kerala. Rao Bahadur T.M. Appu Nedungadi, author of Kundalatha,

Established the bank in 1899. It was incorporated in 1913, and in 1965 had acquired
selected assets and deposits of the Coimbatore National Bank. At the time of the merger
with PNB, Nedungadi Bank's shares had zero value, with the result that its shareholders
received no payment for their shares.

o PNB also opened a representative office in London.

o 2004: PNB established a branch in Kabul, Afghanistan.

o PNB also opened a representative office in Shanghai.

o PNB established an alliance with Everest Bank in Nepal that
permits migrants to transfer funds easily between India and Everest
Bank's 12 branches in Nepal.

o 2005: PNB opened a representative office in Dubai.

o 2007: PNB established PNBIL - Punjab National Bank (International) -
in the UK, with two offices, one in London, and one in South Hall. Since
then it has opened a third branch in Leicester, and is planning a fourth in
Birmingham. Gatin Gupta became Chairmen of Punjab National Bank.
o 2008: PNB opened a branch in Hong Kong.
o 2009: PNB opened a representative office in Oslo, Norway.

ACHIEVEMENTS

Punjab National Bank announced its Q1FY2010 results on 29 July

2009, delivering 62% y-o-y growth in net profits to Rs832 crore
(Rs512cr), substantially ahead of expectations on account of large
treasury gains, apart from healthy operating performance.

While the banks deposit growth was reasonably robust at 4.4%

sequentially and 26.5% y-o-y, unlike the peers its growth in
advances also remained strong at 38% y-o-y.

o In spite of being at the forefront of PLR cuts, the bank posted a healthy
growth in Net Interest Income (NII) of 29% y-o-y.

o Other Income surged 113% y-o-y, driven by strong treasury gains of Rs355
crore during the quarter in line with industry trends, even as Fee income
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 was also robust at 45% y-o-y, on the back of strong balance sheet growth.

o Operating expenses were higher than expected on account of Rs150 crore

of provisions for imminent wage hikes.
o
Gross and Net NPA ratios remained stable sequentially at 1.8% and 0.2%,with the bank not
adopting the guidelines of treating floating provisions as part of tier 2 capital instead of
adjusting against NPAs.

VISION AND MISSION

To evolve and position the bank as a world class, progressive, cost effective and
customer friendly institution providing comprehensive financial and related services.

Integrating frontiers of technology and serving various segments of society

especially weaker section.

Commited to excellence in serving the public and also excelling in

corporate values

Mission

To provide excellent professional services and improve its position as a

leader in financial and related service.
Build and maintain a team of motivated workforce with high work ethos.
Use latest technology aimed at customer satisfaction and act as an effective
catalyst for socio economic development.

VALUES AND ETHICS

Bonding and Integrity

Ethical conduct

Periodic disclosure

Confidentiality and fair dealing

Compliance with rules and regulation

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PRODUCTS AND SERVICES

Savings Fund Account - Total Freedom Salary Account, PNB Prudent Sweep,
PNB Vidyarthi SF Account, PNB Mitra SF
Account Current Account - PNB Vaibhav, PNB Gaurav, PNB Smart Roamer
Fixed Deposit Schemes - Spectrum Fixed Deposit Scheme, Anupam Account,
Mahabachat Schemes, Multi Benefit Deposit
Scheme Credit Schemes - Flexible Housing Loan, Car Finance, Personal
Loan, Credit Cards
Social Banking - Mahila Udyam Nidhi Scheme, Krishi Card, PNB Farmers
Welfare Trust
Corporate Banking - Gold Card scheme for exporters, EXIM finance
Business Sector - PNB Karigar credit card, PNB Kushal Udhami, PNB Pragati
Udhami, PNB Vikas Udhami

Apart from these, and the PNB also offers locker facilities, senior citizens schemes, PPF
schemes and various E-service .

AWARDS AND DISTINCTIONS

Ranked among top 50 companies by the leading financial daily,

Economic Times.
Ranked as 323rd biggest bank in the world by Bankers Almanac (January
2006), London.
Earned 9th place among India's Most Trusted top 50 service brands in Economic
Times- A.C Nielson Survey.
Included in the top 1000 banks in the world according to The Banker, London.
Golden Peacock Award for Excellence in Corporate Governance - 2005 by
Institute of Directors.
FICCI's Rural Development Award for Excellence in Rural
Development 2005

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 COMPETITORS

Competitors and other players in the field:-

Top Performing Public Sector Banks

Andhra Bank
Allahabad Bank
State bank of India
Dena Bank

Vijaya Bank

Top Performing Private Sector Banks

HDFC Bank

ICICI Bank
AXIS Bank
Kotak Mahindra Bank
Centurion Bank of Punjab

Top Performing Foreign Banks

Citibank
Standard Chartered
HSBC Bank
ABN AMRO Bank
American Express

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 Chapter-3
REVIEW OF LITERATURE

22
NATIONAL LITERATURE REVIEW
Rakesh H M & Ramya T J (2014) In their research paper titled A Study on Factors
Influencing Consumer Adoption of Internet Banking in India tried to examine the factors that
influence internet banking adoption. Using PLS, a model is successfully proved and it is found
that internet banking is influenced by its perceived reliability, Perceived ease of use and
Perceived usefulness. In the marketing process of internet banking services marketing expert
should emphasize these benefits its adoption provides and awareness can also be improved to
attract consumers attention to internet banking services.
Amruth Raj Nippatlapalli (2013) In his research paper A Study on Customer Satisfaction of
Commercial Banks: Case Study on State Bank of India. This paper present Customer
satisfaction, a term frequently used in marketing, is a measure of how products and services
supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as
"the number of customers, or percentage of total customers, whose reported experience with a
firm, its products, or its services (ratings) exceeds specified satisfaction goals."Banking in India
originated in the last decades of the 18th century. The first banks were The General Bank of
India, NOW which started in 1786, and Bank of Hindustan, which started in 1790; both are now
defunct. The oldest bank in existence in India is the State Bank of India, which originated in the
Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was
one of the three presidency banks, the other two being the Bank of Bombay and the Bank of
Madras, all three of which were established under charters from the British East India Company.
For many years the Presidency banks acted as quasi-central banks, as did their successors. The
three banks merged in 1921 to form the Imperial Bank of India.
Mr. Vijay Prakash Gupta & Dr. P. K. Agarwal (2013) In their research paper Comparative
Study of Customer Satisfaction in Public Sector and Private Sector Banks in India. This paper
gives with the introduction of liberalization policy and RBI's easy norms several private and
foreign banks have entered in Indian banking sector which has given birth to cut throat
competition amongst banks for acquiring large customer base and market share. Banks have to
deal with many customers and render various types of services to its customers and if the
customers are not satisfied with the services provided by the banks then they will defect which
will impact economy as a whole since banking system plays an important role in the economy of
a country, also it is very costly and difficult to recover a dissatisfied customer. Since the
competition has grown manifold in the recent times it has become a herculean task for
organizations to build loyalty, the reason being that the customer of today is spoilt for choice. It
has become imperative for both public and private sector banks to perform to the best of their
abilities to retain their customers by catering to their explicit as well as implicit needs. Many a
times it happens that the banks fail to satisfy their customer which can cause huge losses for
banks and there the need of this study arises. The purpose of this research article is to examine
the customer satisfaction among group of customer towards the public sector& private sector
banking industries in India. Study is cross-sectional and descriptive in nature. The researcher
tries to makes an effort to clarify the Customer Service satisfaction in Indian banking Sector.
Descriptive research design is used for this study, where the data is collected through the
questionnaire. The information is gathered from the different customers of the two banks, viz.,
PNB and HDFC Bank located in the Meerut Region, Uttar Pradesh. Hundred bank respondents

23
from each bank were contacted personally in order to seek fair and frank responses on quality of
service in banks.
The service quality model developed by Zeithamal, Parsuraman and Berry (1988) has been used
in the present study. The analysis clearly shows that there exists wide perceptual difference
among Indian (public sector) banks regarding overall service quality with their respective
customers, when compared to Private sector banks. Whereas the said perceptual difference in
private banks is narrow.
Ms. Nisha Malik & Mr. Chand Prakash Saini (Jul 2013) In their research titled on Private
Sector Banks Service Quality and Customer Satisfaction A Empirical Study two Private Sector
Banks. This research paper is an effort to examine the relationship between service quality and
customer satisfaction of two private sectors bank of India. Service quality has been described as
a form of attitude that results from the comparison of prospect with recital (Cronin and Taylor,
1992, Parasuraman et al, 1985).
Gronroos 1982) argued that customers, while evaluating the quality of service, compare the
service they expect with perceptions of the services they actually receive. Since financial
products offered by various banks are similar by nature then why any particular bank of product
of any bank is preferred than others a matter of interest for academician as well as banking
industry. They may be difference between customers of public and private sector banks, but why
are two banks of one sector being preferred differently by customers. This research study is an
effort to find out the answer of these questions.
Vijay M. Kumbhar (2011) In his research paper Factors Affecting the Customer satisfaction
In E-Banking: Some evidences Form Indian Banks. This study evaluates major factors (i.e.
service quality, brand perception and perceived value) affecting on customers satisfaction in e-
banking service settings. This study also evaluates influence of service quality on brand
perception, perceived value and satisfaction in e-banking. Required data was collected through
customers survey. For conducting customers survey liker scale based questionnaire was
developed after review of literature and discussions with bank managers as well as experts in
customer service and marketing. Collected data was analyzed using principle component (PCA)
using SPSS 19.0. A result indicates that, Perceived Value, Brand Perception, Cost Effectiveness
,Easy to Use, Convenience, Problem Handling, Security/Assurance and Responsiveness are
important factors in customers satisfaction in e-banking it explains 48.30 per cent of variance.
Contact Facilities, System Availability, Fulfillment, Efficiency and Compensation are
comparatively less important because these dimensions explain 21.70 percent of variance in
customers satisfaction. Security/Assurance, Responsiveness, Easy to Use, Cost Effectiveness
and Compensation are predictors of brand perception in e-banking and Fulfillment, Efficiency,
Security/Assurance, Responsiveness, Convenience, Cost Effectiveness, Problem Handling and
Compensation are predictors of perceived value in e-banking.
Pooja Malhotra & Balwinder SINGH (2009) In their research paper The Impact of Internet
Banking on Bank Performance and Risk: The Indian Experience. The paper describes the
current state of Internet banking in India and discusses its implications for the Indian banking
industry. Particularly, it seeks to examine the impact of Internet banking on banks performance
and risk. Using information drawn from the survey of 85 scheduled commercial banks websites,
during the period of June 2007, the results show that nearly 57 percent of the Indian commercial

24
banks are providing transactional Internet banking services. The univariate analysis indicates that
Internet banks are larger banks and have efficiency ratios and profitability as compared to non-
Internet banks. Internet banks rely more heavily on core deposits for funding than non-Internet
banks do. However, the multiple regression results reveal that the profitability and offering of
Internet banking does not have any significant association, on the other hand, Internet banking
has a significant and negative association with risk profile of the banks.

International Literature Review

Shaza W. Ezzi (April 2014) In their research paper titled A Theoretical Model for Internet
Banking: Beyond Perceived Usefulness and Ease of Use tried to inquired different types of
electronic banking like ATMs, telephone banking, and electronic funds transfer, Internet
banking like has evolved from consumers needs to have superior access to banking services
clear of most banks teller-staffed, normal operating hours. Additionally, Internet banking has
grown swiftly from the recent and the span increases in ecommerce. Internet banking (IB)
continues to govern the landscape of electronic banking as consumers continue to use IB to
complete schedule banking transactions in addition to conducting on-line sales and purchasing.
This study presents a theoretical model considered to help researchers and practitioners better
understand the acceptance and adoption of Internet Banking. The proposed model maybe
particularly useful in developing nations where consumers are loath to use Internet Banking even
when the services are available. However, a review of several studies that have investigated
consumers acceptance of Internet banking services from a multiplicity of perspectives have not
reached a clear consensus of the factors that contribute to overall consumer acceptance and
adoption. The paper concludes with discussions of the managerial implications and avenues for
future research.
kartikeya bolar (2014) In their research paper End-user Acceptance of Technology Interface In
Transaction Based Environment This paper presents Creators and investors of technology need
information about the customers assessment of their technology interface based on the features
and various quality dimensions to make strategic decisions in improving technology interfaces
and compete on various quality dimensions. The research study identifies the technology
interface dimensions as perceived by the end-users in a transaction based environment (viz.
Internet banking) in India, using exploratory factor analysis. The influence of these dimensions
on the utility of technology interface and hence the usage is examined by Structural Equation
Modeling. The moderating role of user demographics and technology comfort is also tested.
Managerial implications are discussed.
Dorra Gherib (2014) In their research paper titled Adoption and diffusion of internet banking:
case of Tunisian banking sector tried to observe the embracing of Internet banking in the
Tunisian banking industry. The aim is to make out factors that accelerate or slow down the
implementation process. The literature review enables identifying a set of variables:
organizational, individual and structural. The research methodology used within this study is the
case study. Five case studies in banking sector were executed. The sample is shaped by banks
that adopted the Internet Baking as a modernization. The analysis allowed the willpower of the
related dimensions of the aforesaid variables (competition, perceived benefits, and organizational

25
compatibility). Indeed, this research has exposed some variables that hamper the implementation
of technological innovations.
Nabil Hussein Al-Fahim (2013) In his research titled An tentative Study of Factors distressing
the Internet Banking espousal: A Qualitative Study among Postgraduate Students tried to find
out the factors that affect the internet banking espousal among postgraduate students in
International Islamic University Malaysia (IIUM).Approach- Semi structured interviews with
eight informant; four adopters and four non-adopters on postgraduate students were conducted
to explore this issue. The results revealed that adopters and non-adopters realized that internet
banking (IB) has quite a lot of benefits and amenities. However, non adopters were concerned
about some factors like trust, ease of use, awareness and security. The results also showed that
adopters had positive influence on use of online banking and they did not have problems with
these factors because they had sufficient knowledge and experience in using online banking. The
findings are important to enable bank Executives to have a better understanding of clients
perception to adopt internet banking. This will help banks managers and owners formulate
strategies that could significantly affect IBA among their customers.
Anil Kumar and Manoj Kumar Dash (2013) In their research paper Constructing a
Measurement in Service Quality for Indian Banks: Structural Equation Modeling
Approach...The aim of this paper is to construct a measure in service quality for Indian banks
and establishes a causal relationship of service attributes performance with customer satisfaction.
The SERVQUAL model is used. The quantification of service quality led to the attempt to
construct an index. The index is constructed using Structural Equation Modeling (SEM) and
American Customer Satisfaction Index (ACSI) as the underlying frameworks. The analysis is
based on data of 200 bank customers from the DelhiNCR. An adapted ACSI is enhanced and
improved to accommodate two exogenous constructs. The results indicate that service quality
variables are important antecedents of customer satisfaction and retention. These antecedents of
service quality have a positive significantly relationship with customer satisfaction. The study
concludes with an analysis of how different dimensions of service quality performance attribute
impact on customer satisfaction and retention. Such a framework should provide valuable
insights to the bank manager to identify key service performance indicators and to design more
effective and efficient marketing and management strategies to satisfy their customer.
Shilpi Khandelwal (2013) In his research titled on E Banking: Factors of Adoption in India
This paper present the last decade has witnessed a drastic change in the economic and banking
environment all over the world. With the economic and financial sector reforms introduced in the
country since early 1990s, the operating environment for banks in India has also undergone a
rapid change. Increasingly, more and more people are switching to electronic platforms for
executing financial transactions. Internet banking has brought about a 360 degree change in the
entire banking industry. The wider usage of cell phone and internet certainly seems to be playing
a role in blurring physical boundaries, and unlocking a whole new world of opportunities for
banks in tapping newer customer segments and in recording greater volume of transactions. For
the banks, technology has emerged as a strategic resource for achieve in higher efficiency,
control of operations, productivity and profitability. For customers, it is the realization of their
anywhere, anytime, anyway banking dream. This has prompted the banks to embrace technology
to meet the increasing customer expectation and face the tough competition. This research paper
is focused on what are the drivers that drive consumers towards adoption of E banking. How

26
consumers have accepted internet banking and how to improve the usage rate were the focus of
research area in this study. Donnelie K Muzividzi, Rangarirai Mbizi & Tinashe Mukwazhe
(2013) In their research paper An Analysis of Factors That Influence Internet Banking Adoption
among Intellectuals: Case of Chinhoyi University of Technology. This paper investigate the
adoption on internet banking has remained sluggish despite the efforts by banks to promote the
technology. The purpose of the research project was to identify the factors that affect the
adoption of internet banking in a bid to construct ways to salvage the situation. The research
focused on intellectuals who better understand technology than the general public. Data was
collected using questionnaires and interviews from the population of 5000 students and academic
staff at Chinhoyi University of Technology. A sample of 450 students and staff were selected
from the population. The research identified various factors that impose barriers and enhance
adoption of internet banking. Chief among these were compromised security of transactions and
marketing exposure. It also unearthed the impact of demographic on internet banking adoption.
Two hypotheses were tested, the first one which was meant to determine if there exist any
relationship between age and internet banking adoption. It was concluded that there is a negative
relationship between age and internet banking adoption. The second hypothesis assumed an
association between internet banking and level of education. Education was deemed a
prerequisite in enhancing the smooth adoption of internet banking and hence one should have a
significant level of education to take up the technology. In waging a protracted war against low
levels of internet banking adoption the research concluded banks should rather concentrate in
promoting the product (internet banking). Bank should also institute measures to guarantee the
security of transactions to internet bank users as this remains the stumbling block to many
potential customers.
Ankit Kesharwani & Gajulapally Radhakrishna (2013) In their research paper Drivers and
Inhibitors of Internet Banking Adoption in India. This paper research on different banks is on
condition that e-banking services, as this would revolutionize their profits. Since internet banking
in India is still in its nascent stage, it is essential for e-banking institutions to enhance reception
and usage of internet as a banking channel by their customers. This paper has reviewed the most
of seminal studies in the area of diffusion of innovation and makes an attempt to do an
experimental research that looked into the factors that drives and inhibits internet banking usage
in India. An investigative factor analysis followed by a positive factor analysis has been applied
on 362 internet banking users. Findings resulted in seven factors perceived benefit, hacking
and fraud risk, performance risk, computer selfefficacy, technology intricacy, social influence,
and pricing concerns. The results suggest that acceptance and usage of internet banking services
can turn into a fundamental concern for future research, as the drivers overcoming the inhibitors
over time at an influencing rate. Moreover, this study also compares the findings with extant
diffusion of innovation literature and identified several additional factors that can affect internet
banking adoption in India.

27
 CHAPTER 4
RESEARCH METHOLOGY

28
OBJECTIVES OF THE STUDY
To study the present scenario of Digital Banking in PNB BANK.
To study the various services provided by Digital Banking.
To find out the level of satisfaction of the customers (Faridabad city) regarding
Digital Banking.
Find the customer satisfaction relating to Digital banking service.
To study the awareness of internet banking among the customers of PNB BANK.

Need of study

To know the customers perception toward the Digital banking service.

I am interested in DIGITAL BANKING that I am taken this topic.

Benefits of study

1) Organizing Educational Campaign To Create Goodwill Of Company.

2) Services It Effectively valuable to Create Place in the Minds of Customer.

3) Availability should be increased by using various services Strategy.

4) Company should make service equal to or better than Competitive Brands By All
Means.

29
SCOPE OF THE STUDY:-

The present study was undertaken to know the preference of the customer towards Punjab
national bank (PNB). The problem of the customer is they are not aware of the services provided
by their bank. The study also force on the customer perception that how the banking services can
be improved. In my study I have used both primary sources of data as well as secondary sources
of data.

The study has been conducted on behalf of PUNJAB NATIONAL BANK

The study is confined to the Mumbai region.

The study covers the service providers and users of PUNJAB NATIONAL BANK

The study has put forward the Customers as well as acceptability behavior for the
services.

The scope of the study is to find out the Customer Satisfaction

30
RESEARCH DESIGN :

The formidable problem that follows the task of defining the research problem is the preparation
of the design of the research project, popularly known as Research Design. Research design is
a plan, structure and strategy of investigation conceived to obtain answers to research questions
and to control variance.

A research design can be defined as Arrangement of condition for collection and analysis of
data in the manner that aims to combine relevance to the research purpose with economy in
procedure. It consists of the blue print for the collection measurement and analysis of data. The
research used here is descriptive research.

31
DESCRIPTIVE RESEARCH

In my study, I am interested in knowing the proportion of people in a given population who has
behaved in a particular manner, making projections of certain thing and determining the
relationship between two or more variables in some areas. As the set up has been well structured
and is a rigid one, which could not be changed by giving sufficient thought in frail-ling question,
deciding type of data to be collected and procedure that has been used gives the, proof of using
description research.In descriptive research also there has been use of cross sectional studies just
because the researcher has taken only a sample of elements from the given population. In the
cross sectional study the survey research has been selected, as a detailed study has to be obtained
from a sample of large population.

DATA COLLECTION METHOD

The data that is used in study in collected by two methods.

1. Primary data

2. Secondary data

32
Primary Data

The primary data does not exist already in records and publications. The researcher has to gather
primary data a fresh for a specific survey. The primary data can be gathered by way of
observation method where the research mix with the people concerned with the use of particular
product and not important clauses by observing the respondents. The second method of
collection of primary data is by way of experimentation method where some variables are
allowed to vary under a controlled environment and its cause and effect relationship is studied.

The third method of collection of data is by way of conducting a survey. This method is used for
collection of primary data. The primary data was collected from customers in India city. For this
research study, data was collected from various account holders of the CitiFinancial. Data
collection was carried out using personal interview method guided by questionnaire as follows:

. Open-ended questions

. Closed ended questions

. Dichotomous questions

. Multiple-choice questions

. Ranking questions

. Rating questions

SECONDARY DATA

It is needed for conducting this research work collected from the various business magazines,
bank brouchers, statistical and management book, market research books etc. which are
presented in the literature various in details

SAMPLING DESIGN

The precision and accuracy of survey results are affected by the manner in which the sample has
been chosen. The first thing for a sample plan is definition of the population to be investigated.
Defining the population is often one of the most difficult things to do in sampling. Although

33
ideal conditions might indicate threat the census would be preferable, such ideal conditions
rarely exist in the real world. A census is not feasible practically, therefore sample is used. Two
of major advantages of using a sample rather than a census are speed and timeliness. A survey
based on sample takes much less time to compete than based on census. In this particular
research study sample survey is done. Sample design is the most important heart of sample
planning. Sample design includes type of sample to use and the appropriate sampling unit.

Sample size

Sample size is 100 respondent. .

Quantitative Methods
A Telephonic Interview was selected as a tool to collect data from the respondents due to the
time and cost constraints. The questionnaire is structured into 12 simple questions. The
respondent is asked to rate his agreeability and disagreeability on the scale of 1 to 5. The
questionnaire is attached as an annexure to this report. The questions are framed using
minimum financial jargon that customers should be comfortable with.

DATA COLLECTION
Primary Data Respondents from Faridabad City were questioned to get the first hand
information.
Secondary Data - Secondary data was collected from the Internet and journal.

34
Limitations of the Study
Banks are not giving me all information about Digital banking services.
They do not permit to meet any of the employees in their bank.
The report has been conducted within a limited time frame.
The study is self financed.
The study is limited to the customer of Mumbai only.
Only selected Branches and Banks have been considered for the study.
Samples were selected conveniently.
The sample size does not represent the total population.
The sample of size is limited to 100 only and the sample size may not represent whole
market.

35
 CHAPTER 5
DATA ANALYSIS
AND
INTERPRETATION

36
Q1.In which bank , you have an account?

a) PNB
b) ICICI
c) HDFC
d) OTHER
TABLE 1:
PARTICULARS PERCENTAGE

PNB 60%
ICICI 30%
HDFC 5%
OTHER 5%
TOTAL NO. OF 100
PEOPLE

FIGURE 1

PERCENTAGE
70%
60%
60%
50%
40%
30%
30% PERCENTAGE
20%
10% 5% 5%
0%
PNB ICICI HDFC OTHER

INTERPRETATIONS 1:

It has been observed that approximately 60% of correspondents are using the service of PNB for
their daily transaction because people are finding more satisfying. Around 30% of people are
using ICICI Bank for their transaction and only 5% & 5% of people are using HDFC & other
Bank services. It also shows that PNB have the highest market position as per my sample.

37
Q2. Are you aware of products & services provided by PNB?

a) YES
b) NO
TABLE 2:

YES 85%

NO 15%
Total No. of People 100

FIGURE 2:

100% YES,
80% 85%
60%

40% NO,
20%
15%
0%
YES NO

INTREPRETATION 2:-

From the above data it is clear that most of the customers (around 85%) know product &
services of PNB because they are more aware about the PNB bank.The rest 15% have the idea
about the product they are using. In this 15% most of the people are from typical rural area
(Farmers).

38
Q3. If yes are you aware of the advance products of PNB ?

TABLE 3:

YES 95%

NO 5%

TOTAL NO. OF PEOPLE 100

FIGURE 3

% OF PEOPLE
100% 95%

80%

60%

40% % OF PEOPLE

20%
5%
0%
YES NO

INTREPRETATION 3:-

It is clear that most of the people are aware about the advance product of PNB because of the
awareness of the PNB bank. Almost all the 95% people who have the idea about the advance
product are the user of PNB product& service.

39
Q4. Which bank you prefer for taking loans?

TABLE 4:

PNB 62%

ICICI 12%

HDFC 2%

OTHER 24%

TOTAL NO. OF PEOPLE 100

FIGURE 4:

24%
PNB
ICICI
2%
HDFC
12% 62% OTHER

INTREPRETATION 4:-According to my sample size 85% of people prefer PNB for loan
product, but some people prefer ICICI, HDFC or OTHER Bank for loan because they are
working with that bank & it is easier for them to get loan from their bank & it easier for them to
pay the interest because it is less as compare to other bank because they are the employee of that
bank.

40
Q.5 Which loan product of PNB you have used?

TABLE 5:

HOME LOAN 47%

EDUCATIONAL LOAN 20%

CAR LOAN 15%

PERSONAL LOAN 10%

OTHER 8%

TOTAL NO. OF 100

PEOPLE

FIGURE 5:

Sales
50%
47%
45%
40%
35%
30%
25% 20%
20% 15%
15% 10% 8%
10%
5% Sales
0%

INTREPRETATION 5:-From the sample size 85% of people are using the PNB loan product.
From the 1800 people 47% of people took home loan from PNB. 20% of people took education
loan for their children, 15% of people took car loan from PNB. Some of the customer took 2 type
of loan from SBI like both car & educational loan and home & car loan. 10% of people took
personal loan because people are finding PNB more trustworthy.

41
Q6. What do you feel about the services providing by PNB in advance product?

TABLE 6:

Not satisfied 0%

Satisfactory 2%

Good 55%

Excellent 43%

TOTAL NO. OF PEOPLE 100

FIGURE 6:

60% 55%
50% 43%
40%

30%

20%

10%
0% 2%
0%
NOT SAISFIED SATISFACTORY GOOD EXCELLENT

INTREPRETATION 6 : From this it is clear that the service provide by PNB in its advance
product is good in between the customer. All of them satisfy with the product provide by PNB .
55% of people said that the service provide by PNB is good because it is more relying & 43%
said it is excellent & just 2% of people said that it is satisfactory.

42
Q7. Which features you like most in Loan segments of PNB?

TABLE 7:

LESS PAPER WORK 3%

ATTRACTIVE INTEREST 35%

RATE

TRANSPARENCY 20%

SIMPLE AND FAST 2%

PROCESSING

LONGER REPAYMENT 40%

PERIOD

TOTAL NO. OF PEOPLE 100

FIGURE 7:

FEATURES LIKE BY CUSTOMER

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

INTREPRETATION7: Most of the people like the attractive interest rate & longer repayment
period. Its easier for people to repay the whole loan amount because its interest rate is low and
longer repayment period.

43
Q8. Service satisfaction towards custumers?

TABLE 8:

ATM 40%
LOAN 7%
EARLY CHEQUE CLEARANCE 7%
NET BANKING 10%
PHONE BANKING 7%
INTREST 7%
OTHER 22%

FIGURE 8:

ATM

LOAN
22%
40% EARLY CHEQUE
7% CLEARANCE

7% NET BANKING

10%
7% 7% PHONE
BANKING
INTEREST

INTERPRETATION 8:

When question was asked which service satisfies you most then 40% said its ATM because it is
easy to use and nearby their location.10% Think that is net banking is quite better. 7% are
satisfied with about interest rate which is offered by the bank. 7%think cheque get clear very
early and 7% think it is quite easy to take loan from SBI bank .7 % think its phone banking
service is really good and rest of the 22 % satisfied with its other services.

44
Q9. Are you satisfied with your financial transactions with the bank?

TABLE 9:

VERY SATISFIED 36%

SATISFIED 30%
SOME WHAT SATISFIED 24%
DISSATISFIED 10%

FIGURE 9:

10% VERY SATISFIED (11)

36% SATISFIED (9)

24%
SOMEWHAT
SATISFIED (7)
DISSATISFIED (3)

30%

INTERPRETATION 9:

According to my survey 36% of respondent said that they are very satisfied because with the
financial transactions of the bank while 30% said that they are happy with its services. 24% think
its services are quite satisfied while remaining 10% are not satisfied with its services.

45
Q10. When you think of your bank what comes first in your mind?

TABLE 10:

PERSONALISED SERVICE 13%

WIDE RANGE NETWORK 63%
CUSTOMER SERVICE 17%
COMPUTERIZED BANKING 7%

FIGURE 10:

PERSONALIZED
7% 13% SERVICE
WIDE BRANCH
17%
NETWORK
CUSTOMER
SERVICE
63%
COMPUTERIZED
BANKING

INTERPRETATION 10 :

From the above table 13 % people using digital banking for personalized services where as 63%
are from wide branch network and 17 % and 7% are used digital banking for customer service
and computerized banking respectively .

46
Q11. Are you satisfied with online banking?

TABLE 11:

YES 58%
NO 25%
CANNOT SAY 17%

FIGURE 11:

17%

YES
NO
25% 58% CANNOT SAY

INTERPRETATION 11:

According to survey 58% people are satisfied with its services because PNB has its best services
in online banking. While 25% are not satisfied and remaining 17% are confused . Because some
people are aware about online but some people are confused.

47
Q 12. PREFERENCE FOR ONLINE BILL PAYMENT SERVICES

TABLE 12:

YES 60%

NO 40%

FIGURE 12:

40%
YES
NO
60%

INTERPRETATION 12 : Acc . to this survey the 60% customer of pnb bank preference
online payment services but 40 % are not preference.Some people are not preference services
because the fear of reveal there personal information.

48
CHAPTER - 6
FINDINGS

49
Findings:

From this project it is found that PNB advance product having the 1st place in the market.
there is a great opportunity to compete with ICICI Bank & to retain its customer by
fulfilling the requirement of customer in PNB advance product.
It has been observed that approximately 85% correspondents are using advance product of
PNB and 15% are not using any type of advance product of PNB in Bhubaneswar.
All of PNB customers are satisfied with the services provided by the bank.
Many of these customers satisfied with the low interest rate and longer repayment period
of the advance product.
Most of the customers at Bhilai prefer to take loan from PNB .
Approximately 43% of advance product users said that the service of SBI in advance
product is excellent.
A response from customer care is so clear & good.
Many customers have no time to call customer care so that they are not able to know about
the service & features of PNB advance product.
Most customers are shifted from other banks advance product to PNB because of hidden
charges, high interest rate, less repayment period.
Government employees are more concern than private employees for advance product

50
CHAPTER 7

CONCLUSION
AND
SUGGESTIONS

51
CONCLUSION

The basic objective of my research was to analyze the awareness among customers for internet
banking in INDIA. It gives direction to research tools, research types and techniques. Although
the findings reveal that people know about the services but still many people are unaware and
many of them are non users so the bank should by promotion try to retain the customers. Banks
should look forward to have some tie ups with other financial institutions to increase the
service base. Digital banking has become a necessary survival weapon and is fundamentally
changing the banking industry worldwide. No country today has a choice-whether to implement
Digital banking or not given the global and competitive nature of the economy. Banks have to
upgrade and constantly think of new innovative customized packages and services to remain
competitive. The invasion of banking by technology has created an information age and
commoditization of banking services.

Banks have come to realize that survival in the new e-economy depends on delivering some or
all of their banking services on the Internet while continuing to support their traditional
infrastructure. The rise of Digital banking is redefining business relationships and the most
successful banks will be those that can truly strengthen their relationship with their customers.
Without any doubt, the international scope of Digital banking provides new growth perspectives
and Internet business is a catalyst for new technologies and new business processes.
With rapid advances in telecommunication systems and digital technology, Digital banking has
become a strategic weapon for banks to remain profitable. It has been transformed beyond what
anyone could have foreseen 25 years ago. However, banks are uncertain about the regulatory
framework for conducting E-business and the regulatory and taxation issues for governing
cyberspace presents formidable problems. Developing such a system is not easy as the Internet is
not organized geographically and it is almost meaningless to refer to a website as national or
local. Any successful attempt at governing cyberspace will involve significant international
cooperation. The Indian experience of Digital banking is gradually merging with its international
counterparts. While the private sector and foreign banks have been fast in adopting Internet
technology in client servicing, there is a gradual trend for the major public sectors and numerous
cooperative units to move in the same direction. A mix of policy support and security assurance
should propel further Digital banking adoption in India.

52
Suggestions

To prevent online banking from remaining customers to prompt this service

through advertising co.
After repairing this basic deficiency, banks must ensure that there services is
competitive.
Banks is not take more charge from there customers.

Secure PC
Install and Update Anti-Virus Software - We should always protect the computer by
using up-to-date anti-virus software that is capable of scanning files and email messages
for viruses. This will prevent files from being corrupted or lost and also prevent PC from
getting infected with the virus
Change Passwords Periodically
It is recommended that one should change passwords regularly, at least every 30 days or
so.
Keep Internet Banking Passwords Confidential.
If one has lost/misplaced his Internet Banking User ID/passwords, it is advisable to
inform the concerned bank and they will disable the same to prevent unauthorized usage.
Passwords can also be re-issued upon request.
In case a person is unable to provide the correct user Id and password, he will not be
granted access. After 5 unsuccessful login attempts, his user Id will be blocked
automatically by the system. To re-enable Internet Banking User ID, he can contact his
bank.
It was found that the customers are mainly using ATM as a major channel of Digital
banking because of the convenience, time saving and anywhere anytime banking. Thus,
the banks should take these into consideration and should install more ATM's at strategic
points

53
.

CHAPTER 8

Bibliography

54
Books:-

1. Digital banking in India

2. Banking service operation (ICFAI)
3. Indian Banking
4. Money & Banking

Websites :-

1. www.google.com
2. www.pnbbank.com
3. www.wikipedia.com

MAGAZINES :-

Business World
Business Today
The Smart Manager

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ANNEXURE

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Questionnaire

Name - _____________________________________

Occupation-__________________________________

Contact Detail -_______________________________

Q. On which bank you depend for your regular transaction?

a) PNB
b) ICICI Bank
c) HDFC Bank
d) Other Bank, Specify (_____________)

Q. Are you aware of products & services provided by PNB?

a) YES
b) NO

Q. If yes are you aware of the advance products (Loan segments) of PNB?

a) YES
b) NO

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 Q. Which bank you prefer for taking loans?

a) PNB
b) ICICI Bank
c) HDFC Bank
d) Other Bank, Specify (_____________)

Q. Which loan product of PNB you have used?

a) Home Loan
b) Education Loan
c) Car Loan
d) Personal Loan
e) Other Loans, Specify ( ______________ )

Q. What do you feel about the services providing by PNB in advance product?
a) Bad
b) Satisfactory
c) Good
d) Excellent

Q. Which features you like most in Loan segments of PNB?

a) Less paper work
b) Attractive interest rate
c) Transparency
d) Simple & fast processing
e) Flexibility to choose an EMI base loan or an overdraft
f) Longer tenure lone for ease of repayment
g) Specially design product for self employed
h) Any other feature, specify ( _____________ )
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Q. Service satisfaction towards customers?

a) ATM
b) Loan
c) Net banking
d) Phone banking
e) interest
f) any other

Q. Are you satisfied with your financial transactions with the bank?

a) Very satisfied
b) Satisfied
c) Somewhat satisfied
d) dissatisfied

Q.When do you think of your bank what comes first in your mind?

a) Personalised service
b) Wide branch network
c) Customer service
d) Computerized banking

Q.Are you satisfied with online banking?

a) Yes
b) No

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Q. Any suggestion you want to give for the betterment of PNB advance product.

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
__________________________________________________________________________.

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