CHAPTER- 1

INTRODUCTION

Online Banking is the term used for new age banking system. It is an outgrowth of PC
banking. Online Banking uses the internet as the delivery channel by which to conduct
banking activity, for example, transferring funds, paying bills, viewing checking and savings
account balances, paying mortgages and purchasing financial instruments and certificates of
deposits. In the present scenario, most of the business organizations are using the internet for
a variety of communication tasks, such as promotion of consumer awareness and interest,
providing information and consultation, facilitating two-way communications with customers
through e-mail, stimulating product trial and enabling customers to place orders. In order to
avail the benefits that are accrued through using Internet, financial institutions like banks are
transforming themselves and conducting their business electronically. This transformation
from normal banking to electronic banking enabled customers to transact online, while saving
on various factors.
In today’s busy world, when people do not have much time even for personal work, Online
Banking appears as a boon. People who use online banking services believe that as their
accounts can be accessed by user name and password that only they know, their money is in
safe hands. Whatever information they need about their bank account is only a click away.

If we look into the modern age of banking, Online Banking or Net Banking made things
much easier for the people and saves lot of time. The traditional way of standing in the queue
and filling up all the forms, now it’s no hassle for making any transaction with the banks.
Every bank has their own features and some banks still not having the more advanced
features like transferring money to any banks across India, easy registration for net banking,
etc.

The project entitled "online banking” is a computerized telecommunications device that

provides the customers of a financial institution with access to financial transactions in a
public space without the need for a human clerk or bank teller. On most modern ATM’s, the
customer is identified by inserting a plastic atm card with a magnetic stripe or a plastic
smartcard with a chip that contains a unique card number and some security information,
such as an expiry date or cvc (cvv). Security is provided to the customer in the form of a
Personal Identification Number (PIN).
1.1 BACKGROUND:-
The precursor for the modern home online banking services were the distance banking
services over electronic media from the early 1980s. The term 'online' became popular in the
late 1980s and referred to the use of a terminal, keyboard and TV (or monitor) to access the
banking system using a phone line. 'Home banking' can also refer to the use of a numeric
keypad to send tones down a phone line with instructions to the bank. Online services started
in New York in 1981 when four of the city's major banks (Citibank, Chase Manhattan,
Chemical and Manufacturers Hanover) offered home banking services using the videotext
system. Because of the commercial failure of videotext these banking services never became
popular except in France where the use of videotext (Minitel) was subsidised by the telecom
provider and the UK, where the Prestel system was used. In the 1990s, banks realized that the
rising popularity of the World Wide Web gave them an added opportunity to advertise their
services. Initially, they used the Web as another brochure, without interaction with the
customer. Early sites featured pictures of the bank's officers or buildings, and provided
customers with maps of branches and ATM locations, phone numbers to call for further
information and simple listings of products.

In 1995, Wells Fargo was the first U.S. bank to add account services to its website,
with other banks quickly following suit. That same year, Presidential became the first U.S.
bank to open bank accounts over the internet. According to research by Online Banking
Report, at the end of 1999 less than 0.4% of households in the U.S. were using online
banking. At the beginning of 2004, some 33 million U.S. households (31%) were using some
form of online banking. Five years later, 47% of Americans used online banking, according
to a survey by Gartner Group. Meanwhile, in the UK online banking grew from 63% to 70%
of internet users between 2011 and 2012.

1.2 REVIEW OF LITERATURE:-

Malhotra, Pooja & Singh, B. (2010) this study is an attempt to present the present
Status of online banking in India and the extent of online banking services offered by banks.
In addition, it seeks to examine the factors affecting the extent of online banking services.
The data for this study are based on a survey of bank websites explored during July 2008.
The sample consists of 82 banks operating in India at 31 March 2007. Multiple regression
technique is employed to explore the determinants of the extent of Online banking services.
The results show that the private and foreign online banks have performed well in offering a
wider range and more advanced services of online banking in comparison with public sector
banks. Among the determinants affecting the extent of Online banking services, size of the
bank, experience of the bank in offering Online banking, financing pattern and ownership of
the bank are found to be significant. The primary limitation of the study is the scope and size
of its sample as well as other variables (e.g. market, environmental, regulatory etc) which
may have an effect on the decision of the banks to offer a wide range of Online banking
services.
 Polaris Software Lab (2010) In this study Polaris Software Lab Limited a leading
Financial Technology Company, launched IntellectPRIVACY based on state-of-the-art
technology and four patents filed by the Indian Institute of Technology Madras. IndusInd
Bank has become the first bank in India to implement IntellectPRIVACY, an online and
Online banking security card, for its Online banking customers. The technology will protect
customers and banks from practically all kinds of phishing attacks, viz. deceptive e-mail,
key/screen logger, brute force/dictionary attacks and Trojans, etc. Intellect PRIVACY uses
multi factor, dynamic authentication technology providing for authorizing online banking
transactions, in a completely secure platform. Commenting on the innovation, Professor L S
Ganesh, Coordinator of the programmer, said, "At IIT Madras, the Department of Computer
Science and Engineering and the Department of Management Studies got particularly
interested in designing an online security technology that is cost efficient and easy to use in a
rapidly growing e-commerce scenario, and transferring it commercially

Azouzi, D. (2009) this paper aims to check if the current and prompt technological
revolution altering the whole world has crucial impacts on the Tunisian banking sector.
Particularly, this study seeks some clues on which we can rely in order to understand the
customers' behavior regarding the adoption of online banking. To achieve this purpose, an
empirical research is carried out in Tunisia and it reveals that panoply of factors is affecting
the customers-attitude toward online banking. For instance; age, gender and educational
qualifications seem to be important and they split up the group into electronic banking
adopters and traditional banking defenders and so, they have significant influence on the
customers' adoption of online banking. Furthermore, this study shows that despite the
presidential incentives and in spite of being fully aware of the online banking's benefits,
numerous respondents are still using the conventional banking. It is worthy to mention that
the fear of loss because of transactions errors or hackers plays a significant role in alienating
Tunisian customers from online banking.

Raja (2008) evaluated the impact of e-payment system on the business opportunities.
They identified that due to the growth of internet users, various electronic payment
mechanisms had been developed to cater the diversity of applicants. The researchers
classified the e-payments into three main groups, namely, cash like systems, check like
systems, and hybrid systems which were further classified into credit cards, debit cards and
electronic cheques. They identified three main issues related to e-payment that were security
issues, low interest among businessmen, and heavy reliance on traditional payment methods.
They also analyzed that there were technical and cultural problems which hinder the path of
e-payments. However, to make e-payments more effective, security threats should be
reduced; and people should be realized that traditional payment methods were more time
consuming than electronic payment methods. They should also be realized that plastic card
payments were more convenient, easier and more secure than cash or cheques.
Raghvan (2006) highlighted the transformation in the banking sector due to effect of
information technology, tele-communication and electronic data processing. He also
attempted to visualize the perception of banks in India in the year 2020 taking into account
the impact of Online Banking, ATMs, EFT on the performance of banks and initiative taken
in liberalization, privatization and globalization. He also evaluated the future of online and
Online Banking. Due to tangible and proven benefits, automation of manual processes; online
and Online Banking was slated to increase manifold. He also evaluated that currently an
estimated 46 lakh net users were online and this was estimated to touch 160 lakh by March
2008. Furthermore, he analysed the projected indicators of banks in India in 2020 with
special emphasis on Online Banking, online banking and electronic banking.

1.3 OBJECTIVES OF STUDY:-

The objectives of this project are as follows:
 To a better understanding of the service quality dimensions that affect customer
satisfaction in the e-banking sector from a consumer perspective.
 To find out the perception of banks regarding the strategic and operational value of
web-based banking, its benefits to customer and banks, and the key technology
considerations.
 To facilitate the organization in improving customer service.
 To help in creating awareness about the features of online banking
 To get a view of public sector & private sector online banking system.
 To find out its online banking services available.
 To find out its online banking system.
 To know its mobile/sms banking services availability.

1.4 RESEARCH METHADOLOGY

DATA TYPES
Normally research methodology entails two kinds of data which are
1- Primary data- This type of data are collected through interviews questionnaire,
survey etc.
2- Secondary data- This type of data are collected through internet, journal, articles
publications research and other techniques. It will save time, money and efforts to
collect the data.
DATA SOURCES- This project based on primary data and secondary data where
information is gathered from internet, journals articles etc. the study was conducted in a
major city of India Kolkata by selecting randomly 50 respondents.
STUDY PERIOD- Taking into account the availability if data, we have chosen the study
a period spanning from November to February.
TOOLS AND TECHNIQUES OF DATA ANALYSIS- The data collected from
internet and by the response of 50 respondent selected randomly, classified and tabulated
as per the requirement of the study.
SAMPLE SIZE- 50 respondent
RESEARCH AREA- Howrah
1.5 LIMITATIONS OF STUDY
They are as follow:
Time constraint as there were short time for developing the project.
Cost factor as the cost for collecting the primary data is high,which was not possible
for a student to afford.
Difficulties of getting information due to the employees work pressure.
Lack of proper information due to organizational secrecy policy.
Up to date information is not available in many situation.
 CHAPTER - 2

CONCEPTUAL FRAMEWORK IN NATIONAL &

INTERNATIONAL SCENARIO.

2.1 CONCEPTUAL FRAMEWORK

Online Banking is the term used for new age banking system. It is an outgrowth of PC
banking. Online Banking uses the internet as the delivery channel by which to conduct
banking activity, for example, transferring funds, paying bills, viewing checking and savings
account balances, paying mortgages and purchasing financial instruments and certificates of
deposits. In the present scenario, most of the business organizations are using the internet for
a variety of communication tasks, such as promotion of consumer awareness and interest,
providing information and consultation, facilitating two-way communications with customers
through e-mail, stimulating product trial and enabling customers to place orders. In order to
avail the benefits that are accrued through using Internet, financial institutions like banks are
transforming themselves and conducting their business electronically. This transformation
from normal banking to electronic banking enabled customers to transact online, while saving
on various factors.
In today’s busy world, when people do not have much time even for personal work, Online
Banking appears as a boon. People who use online banking services believe that as their
accounts can be accessed by user name and password that only they know, their money is in
safe hands. Whatever information they need about their bank account is only a click away.

If we look into the modern age of banking, Online Banking or Net Banking made things
much easier for the people and saves lot of time. The traditional way of standing in the queue
and filling up all the forms, now it’s no hassle for making any transaction with the banks.
Every bank has their own features and some banks still not having the more advanced
features like transferring money to any banks across India, easy registration for net banking,
etc.

Advantages
Internet Banking has several advantages over traditional one which makes operating an
account simple and convenient. It allows to conduct various transactions using the
bank's website and offers several advantages. Some of the advantages of internet
banking are:
 Online account is simple to open and easy to operate.
 It is quite convenient as one can easily pay their bills, can transfer funds between
accounts, etc. Now there is no need to stand in a queue to pay off the bills; to keep
receipts of all the bills as it can be easily viewed in the transactions.
 It is available all the time, i.e. 24x7. One can perform the tasks from anywhere and
at any time; even in night when the bank is closed or on holidays. The only thing
people need to have is an active internet connection.
 It is fast and efficient. Funds get transferred from one account to the other very
fast. One can also manage several accounts easily through internet banking.
 Through Internet banking, one can keep an eye on your transactions and account
balance all the time. This facility also keeps the account safe. This means that by
the ease of monitoring the account at anytime,one can get to know about any
fraudulent activity or threat to the account before it can pose the account to severe
damage.
 It also acts as a great medium for the banks to endorse their products and services.
The services include loans, investment options, and many others.

Disadvantages
Though there are many advantages of internet banking, but nothing comes without
disadvantages and everything has its pros and cons; same is with internet banking. It
also has some disadvantages which must be taken care of. The disadvantages of online
banking include the following:
 Understanding the usage of internet banking might be difficult for a beginner at
the first go. Though there are some sites which offer a demo on how to access
online accounts, but not all banks offer this facility. So, a person who is new, might
face some difficulty.
 One cannot have access to online banking if they don’t have an internet
connection; thus without the availability of internet access, it may not be useful.
 Security of transactions is a big issue. Your account information might
get hacked by unauthorized people over the internet.
 Password security is a must. After receiving the password, do change it and
memorize it otherwise the account may be misused by someone who gets to know
the password inadvertently.
 One cannot use it, in case, the bank’s server is down.
 Another issue is that sometimes it becomes difficult to note whether the
transaction was successful or not. It may be due to the loss of net connectivity in
between, or due to a slow connection, or the bank’s server is down.
NATIONAL SECNARIO:-

THE ENTRY OF INDIAN BANKS INTO ONLINE BANKING

Online Banking, both as a medium of delivery of banking services and as a strategic
tool for business development, has gained wide acceptance internationally and is fast
catching up in India with more and more banks entering the fray. India can be said to be on
the threshold of a major banking revolution with online banking having already been
unveiled. A recent questionnaire, to which 46 banks responded, has revealed that at present,
11 banks in India are providing Online Banking services at different levels, 22 banks propose
to offer Online Banking in near future while the remaining 13 banks have no immediate plans
to offer such facility.

Products and services offered

Banks in India are at different stages of the web-enabled banking cycle. Initially, a
bank, which is not having a web site, allows its customer to communicate with it through an
e-mail address; communication is limited to a small number of branches and offices which
have access to this e-mail account. As yet, many scheduled commercial banks in India are
still in the first stage of Online Banking operations.
Some of the banks permit customers to interact with them and transact electronically
with them. Such services include request for opening of accounts, requisition for cheque
books, stop payment of cheques, viewing and printing statements of accounts, movement of
funds between accounts within the same bank, querying on status of requests, instructions for
opening of Letters of Credit and Bank Guarantees etc. These services are being initiated by
banks like ICICI Bank Ltd., HDFC Bank Ltd. Citibank, Global Trust Bank Ltd., UTI Bank
Ltd., Bank of Madura Ltd., Federal Bank Ltd. etc.
Some of the more aggressive players in this area such as ICICI Bank Ltd., HDFC
Bank Ltd., UTI Bank Ltd., Citibank, Global Trust Bank Ltd. and Bank of Punjab Ltd. offer
the facility of receipt, review and payment of bills on-line. These banks have tied up with a
number of utility companies.
Banks like ICICI Bank Ltd., HDFC Bank Ltd. etc. are thus looking to position
themselves as one stop financial shops. These banks have tied up with computer training
companies,computer manufacturers, Internet Services Providers and portals for expanding
their online banking services, and widening their customer base. ICICI Bank Ltd. has set up a
web based joint venture for on-line distribution of its retail banking products and services on
the Internet, in collaboration with Satyam Info way, a private ISP through a portal named as
icicisify.com. The customer base of www.satyamonline.com portal is also available to the
bank. The race for market supremacy is compelling banks in India to adopt the latest
technology on the Internet in a bid to capture new markets and customers. HDFC Bank Ltd.
with its 'Freedom- the e-Age Saving Account' Service, Citibank with 'Suvidha' and ICICI
Bank Ltd. with its 'Mobile Commerce' service have tied up with cell phone operators to offer
Mobile Banking to their customers.
INTERNATIONAL SCENARIO:-

Since its inception, Online Banking has experienced strong and sustained growth.
World Bank report on leapfrogging in e-finance pointed out that the three countries with
impressive progress in information technology in this sense are Estonia, Republic of Korea
and Brazil. Creation of the world's leading electronic banking systems has been done at a
remarkably low cost compared to other world-class internet banks.
In the European Union, 60 million people, representing 18 percent of the adult
population, use online banking. In France, the number of online banking accounts is
recording an annual growth rate of 80 percent. However, Estonia is a country that has become
a leader in Online Banking (which now reaches 18 percent of the population), not only
among Eastern European countries but in world rankings, through a combination of easy to-
use software, free-of-charge transactions and behaviour changes resulting from the influence
of the Nordic countries' IT culture on Estonia.
A sector in which Latin America is seems to be performing better than in other
industries is online retail banking. Growth in this area has been driven by traditional banks,
which have used the online channel to generate customer loyalty and improve their operating
margins. Two Brazilian banks, Bradesco and Banco do Brasil; havethus achieved more than 4
million online customers each. Mexico is another leader of Online Banking in Latin America.
It adopted legislation providing for thedevelopment of both E-Commerce and e-finance. In
Mexico, the number of onlinebank users more than tripled from 700,000 in 2000 to 2.4
million in 2001, and it reached 4.5 million in 2005. One reason for the success
ofLatinAmerican banks' online ventures seems to be the attention they have paid toproviding
retail customers with multiple ways to access their accounts (Internet, telephone, wireless).
However, given that the share of the total population thatactually has a bank account
is relatively small, the expansion of Latin Americanonline banking may be facing a
bottleneck.Compared with overall Internet usage estimated at 4.4 million in Australia, the
majorbanks together have attracted only 1.2 million to online banking. The Internet is
aglobalphenomenon and so is e-finance. Its deployment is not limited to developedcountries,
and indeed some developing countries - such as India and the Republic of Korea - are
experiencing particularly strong growth in E-Banking.
In Asia one of themost impressive records has been achieved by the Republic of
Korea. The Republic of Korea is leading in online brokerage and in mobile banking. In
South-East AsiaInter online banking is also developing rapidly in Thailand, Malaysia, and
Singapore and to a lesser extent in Philippines. In Bangladesh there is a large gap between the
computerization of foreign banks and that of local commercial banks and as regards the state
of their intra- and inter-branch online networks.
However, 75 per cent of local banks are planning to introduce E-Banking, which implies very
dynamic improvements. Apart from North and South Africa the Sub Saharan Africa is the
region that is seriously lagging behind in Online Banking, although it is giving to the rest of
the world the good example of microfinance developments.
 CHAPTER - 3
COMPANY PROFILE

3.1 COMPANY PROFILE ON AXIS BANK:-

Axis Bank is the third largest private sector bank in India. The Bank offers the entire
spectrum of financial services to customer segments covering Large and Mid-Corporates,
MSME, Agriculture and Retail Businesses.
The Bank has a large footprint of 2589 domestic branches (including extension counters) and
12,355 ATMs spread across the country as on 31st March 2015. The overseas operations of
the Bank are spread over nine international offices with branches at Singapore, Hong Kong,
Dubai (at the DIFC), Colombo and Shanghai; representative offices at Dhaka, Dubai, Abu
Dhabi and an overseas subsidiary at London, UK. The international offices focus on
corporate lending, trade finance, syndication, and investment banking and liability
businesses.
Axis Bank is one of the first new generation private sector banks to have begun operations in
1994. The Bank was promoted in 1993, jointly by Specified Undertaking of Unit Trust of
India (SUUTI) (then known as Unit Trust of India), Life Insurance Corporation of India
(LIC), General Insurance Corporation of India (GIC), National Insurance Company Ltd., The
New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India
Insurance Company Ltd. The shareholding of Unit Trust of India was subsequently
transferred to SUUTI, an entity established in 2003.
With a balance sheet size of Rs. 461,932 crores as on 31st March 2015, Axis Bank has
achieved consistent growth and stable asset quality with a 5 year CAGR (2010-11 to 2014-
15) of 21% in Total Assets, 18% in Total Deposits, 22% in Total Advances and 24% in Net
Profit.

Operations
Indian Business:As on 07-Mar-2016, the Bank had a network of 2500 branches and extension
counters and 12922 ATMs. Axis Bank has the largest ATM network among private banks in
Indiaand it operates an ATM at one of the world’s highest sites at Thegu, Sikkim at a height
of 4,023 meters (13,200 ft) above sea level.
International Business: The Bank has eight international offices with branches at Singapore,
Hong Kong, Dubai (at the DIFC), Shanghai, Colombo and representative offices at Dubai and
Abu Dhabi, which focus on corporate lending, trade finance, syndication, investment banking
and liability businesses. In addition to the above, the Bank has a presence in UK with its
wholly owned subsidiary Axis Bank UK Limited. The total assets of the overseas branches
were US$7.86bn
Services
Axis Bank operates in four segments: Treasury operations, Retail banking,
Corporate/Wholesale banking and other banking business.
Treasury operations: The Bank’s treasury operation services include investments in sovereign
and corporate debt, equity and mutual funds, trading operations, derivative trading and
foreign exchange operations on the account, and for customers and central funding.
Retail banking: In the retail banking category, the bank offers services such as lending to
individuals/small businesses subject to the orientation, product and granularity criterion,
along with liability products, card services, Internet banking, automated teller machines
(ATM) services, depository, financial advisory services, and Non-resident Indian (NRI)
services. Axis bank is a participant in RBI's NEFT enabled participating banks list.
Corporate/wholesale banking: The Bank offers to corporate and other organisations services
including corporate relationship not included under retail banking, corporate advisory
services, placements and syndication, management of public issues, project appraisals, capital
market related services and cash management services.
NRI services: Products and services for NRIs that facilitate investments in India.
Business banking: The Bank accepts income and other direct taxes through its 214 authorised
branches at 137 locations and central excise and service taxes (including e-Payments) through
56 authorised branches at 14 locations.
Investment banking: Bank’s Investment Banking business comprises activities related to
Equity Capital Markets, Mergers and Acquisitions and Private Equity Advisory. The bank is
a SEBI-registered Category I Merchant Banker and has been active in advising Indian
companies in raising equity through IPOs, QIPs, and Rights issues etc. During the financial
year ended 31 March 2012, Axis Bank undertook 9 transactions including 5 IPOs and 2 Open
Offers.

Lending to small and medium enterprises: Axis Bank SME business is segmented in three
groups: Small Enterprises, Medium Enterprises and Supply Chain Finance. Under the Small
Business Group a subgroup for financing micro enterprises is also set up. Axis bank is the
first Indian Bank having TCDC cards in 11 currencies.[citation needed]

Agriculture banking: 759 branches of the Bank provide banking services, including
agricultural loans, to farmers. As on 31 March 2013, the Bank’s outstanding loans in the
agricultural sector was INR 148 billion, constituting 7.5% of its total advances.

Advisory Services have been developed to advise public and private sector clients on capital
structuring and funding options with a view to help the clients to help them reduce the cost of
funds. The Group has also been active in advising the central and various state governments
or their agencies in privatisation and bid process management. The Group has successfully
worked on some of the benchmark transactions in infrastructure development &
manufacturing sector covering an entire range of projects across roads, railways, airports,
urban infrastructure maritime, power, oil and gas, petrochemicals, cement, sugar, textiles,
steel & allied sectors, auto ancillaries, paper, Information Technology (IT), etc.

Ping Pay was unveiled between 21-25 May 2015, which is a multi-social payment solution
that let customers to transfer funds using their smart phones to both Axis Bank accounts and
other banks' account holders.

History
UTI Bank opened its registered office in Ahmedabad and corporate office in Mumbai in
December 1993. The first branch was inaugurated on 2 April 1994 in Ahmedabad by Dr.
Manmohan Singh, then Finance Minister of India. UTI Bank began its operations in 1994,
after the Government of India allowed new private banks to be established. The Bank was
promoted in 1993 jointly by the Administrator of the Unit Trust of India (UTI-I), Life
Insurance Corporation of India (LIC), General Insurance Corporation, National Insurance
Company, The New India Assurance Company, The Oriental Insurance Corporation and
United India Insurance Company.
In 2001 UTI Bank agreed to merge with and amalgamate Global Trust Bank, but the Reserve
Bank of India (RBI) withheld approval and nothing came of this. In 2004 the RBI put Global
Trust into moratorium and supervised its merger into Oriental Bank of Commerce.
UTI Bank opened its first overseas branch in 2006 Singapore. That same year it opened a
representative office in Shanghai, China.
UTI Bank opened a branch in the Dubai International Financial Centre in 2007. That same
year it began branch operations in Hong Kong. The next year it opened a representative office
in Dubai.
Axis Bank opened a branch in Colombo in October 2011, as a Licensed Commercial Bank
supervised by the Central Bank of Sri Lanka. Also in 2011, Axis Bank opened a
representative offices in Abu Dhabi.
In 2013, Axis Bank's subsidiary, Axis Bank UK commenced banking operations. Axis Bank
UK has a branch in London.
In 2014, Axis Bank upgraded its representative office in Shanghai to a branch.
3.2 COMPANY PROFILE ON SBI :-
State Bank of India (SBI) is an Indian multinational, public sector banking and financial
services company. It is a government-owned corporation with its headquarters in Mumbai,
Maharashtra. As of 2014-15, it had assets of 20.480 trillion (US$300 billion) and more than
14,000 branches, including 191 foreign offices spread across 36 countries, making it the
largest banking and financial services company in India by assets. The company is ranked
232nd on the Fortune Global 500 list of the world's biggest corporations as of 2016.

The bank traces its ancestry to British India, through the Imperial Bank of India, to the
founding, in 1806, of the Bank of Calcutta, making it the oldest commercial bank in
the Indian Subcontinent. Bank of Madras merged into the other two "presidency banks" in
British India, Bank of Calcutta and Bank of Bombay, to form the Imperial Bank of India,
which in turn became the State Bank of India in 1955. Government of India owned the
Imperial Bank of India in 1955, with Reserve Bank of India (India's Central Bank) taking a
60% stake, and renamed it the State Bank of India. In 2008, the government took over the
stake held by the Reserve Bank of India.
State Bank of India is a banking behemoth and has 20% market share in deposits and loans
among Indian commercial banks.

Operations
SBI provides a range of banking products through its network of branches in India and
overseas, including products aimed at non-resident Indians (NRIs). SBI has 14 regional hubs
and 57 Zonal Offices that are located at important cities throughout India.

Domestic presence
SBI has 18,354 branches in India. In the financial year 2012–13, its revenue was ₹2.005
trillion (US$30 billion), out of which domestic operations contributed to 95.35% of revenue.
Similarly, domestic operations contributed to 88.37% of total profits for the same financial
year.
Under the Pradhan Mantri Jan Dhan Yojana of financial inclusion launched by Government
in August 2014, SBI held 11,300 camps and opened over 3 million accounts by September,
which included 2.1 million accounts in rural areas and 0.88 million accounts in urban areas

International presence
The Israeli branch of the State Bank of India located in Ramat Gan.
As of 2014–15, the bank had 191 overseas offices spread over 36 countries having the largest
presence in foreign markets among Indian banks.[5] It has branches in Singapore,
Moscow, Colombo, Dhaka, Frankfurt, Hong Kong, Tehran, Johannesburg, London, Los
Angeles, Male in the Maldives, Muscat, Dubai, New York, Osaka, Sydney, and Tokyo. It
has offshore banking units in the Bahamas and Bahrain, and representative offices in
Myanmar, Bhutan and Cape Town.
SBI has 7 retail banking branches in Singapore.
The Canadian subsidiary SBI Canada Bank (previously State Bank of India (Canada)) also
dates to 1982. It has six branches, four in the Toronto area and two in the Vancouver area.
SBI operates several foreign subsidiaries or affiliates.
In 1990, it established an offshore bank: State Bank of India (Mauritius). SBI (Mauritius) has
15 branches in major cities/towns of the country including Rodrigues.
Associate banks
Main Branch of SBI in Mumbai.
SBI now has one associate bank, down from the eight that it originally acquired in 1959. All
use the State Bank of India logo, which is a blue circle, and all use the "State Bank of" name,
followed by the regional headquarters' name

History
The roots of the State Bank of India lie in the first decade of the 19th century, when the Bank
of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of
Bengal was one of three Presidency banks, the other two being the Bank of
Bombay (incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July
1843). All three Presidency banks were incorporated as joint stock companies and were the
result of royal charters. These three banks received the exclusive right to issue paper currency
till 1861 when, with the Paper Currency Act, the right was taken over by the Government of
India. The Presidency banks amalgamated on 27 January 1921, and the re-organised banking
entity took as its name Imperial Bank of India. The Imperial Bank of India remained a joint
stock company but without Government participation.
Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India,
which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On
1 July 1955, the imperial Bank of India became the State Bank of India. In 2008,
the Government of India acquired the Reserve Bank of India's stake in SBI so as to remove
any conflict of interest because the RBI is the country's banking regulatory authority.
In 1959, the government passed the State Bank of India (Subsidiary Banks) Act. This made
SBI subsidiaries of eight that had belonged to princely states prior to their nationalization and
operatonal take-over between September 1959 and October 1960, which made eight state
banks associates of SBI. This acquisition was in tune with the first Five Year Plan, which
prioritised the development of rural India. The government integrated these banks into the
State Bank of India system to expand its rural outreach. In 1963 SBI merged State Bank of
Jaipur (est. 1943) and State Bank of Bikaner (est.1944).
SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911), which
SBI acquired in 1969, together with its 28 branches. The next year SBI acquired National
Bank of Lahore (est. 1942), which had 24 branches. Five years later, in 1975, SBI acquired
Krishnaram Baldeo Bank, which had been established in 1916 in Gwalior State, under the
patronage of Maharaja Madho Rao Scindia. The bank had been the Dukan Pichadi, a small
moneylender, owned by the Maharaja. The new bank's first manager was Jall N. Broacha, a
Parsi. In 1985, SBI acquired the Bank of Cochin in Kerala, which had 120 branches. SBI was
the acquirer as its affiliate, the State Bank of Travancore, already had an extensive network in
Kerala.
The new logo of the SBI was the aerial view of the Kankaria Lake in Ahmedabad, Gujarat on
1 October 1971 and was designed by Shekhar Kammat.
There has been a proposal to merge all the associate banks into SBI to create a "mega bank"
and streamline the group's operations.
The first step towards unification occurred on 13 August 2008 when State Bank of
Saurashtra merged with SBI, reducing the number of associate state banks from seven to six.
On 19 June 2009, the SBI board approved the absorption of State Bank of Indore. SBI holds
98.3% in State Bank of Indore. (Individuals who held the shares prior to its takeover by the
government hold the balance of 1.7%
The acquisition of State Bank of Indore added 470 branches to SBI's existing network of
branches. Also, following the acquisition, SBI's total assets will approach ₹10 trillion. The
total assets of SBI and the State Bank of Indore were₹9,981,190 million as of March 2009.
The process of merging of State Bank of Indore was completed by April 2010, and the SBI
Indore branches started functioning as SBI branches on 26 August 2010.
On 7 October 2013, Arundhati Bhattacharya became the first woman to be
appointed Chairperson of the bank.
3.3 DATA AYNALYSIS

4. Are You Aware Of The Benefits Of Online Banking Which Are Available?
Axis Bank :- a) Yes :- 70% b) No :- 30%
S.B.I. :- a) Yes :-60% b) No :- 40%

80%
70%
60%
50%
40% Yes

30% No

20%
10%
0%
Axis Bank S.B.I

Interpretation of the above diagram:

From the above figure, it has been observed that more than half of the respondent of
both the banks were aware of the benefits of the online banking. In case of Axis Bank
70% of the respondent were aware of the benefits of the Online Banking, on the other
hand 60% of the respondent of the S.B.I. knew about the benefits.

5. Does Your Bank Educate You About The Online Banking Services Being Offered?
Axis Bank :- a) Yes :- 65% b) No:- 35%
S.B.I:- a) Yes :-55% b) No:- 45%

70%

60%

50%

40%
Yes
30% No

20%

10%

0%
Axis Bank S.B.I
 Interpretation of the above diagram:
From the above figure, it has been witnessed that most of the respondent said that they were
provided a brief information about the online banking but there were few respondent who
completely disagreed that they were not at all informed about anything such as `The Online
Banking`. Here 65% respondent of the Axis Bank said that they were educated about the
Online Banking by their bank whereas 45% respondent of the S.B.I. said that they were not
educated about the sevices.
6;- What Are Your Main Transactions You Do By Internet?
Axis Bank :- a) Money Transfer:-40% b) Checking Of Your Current Balance:-
25% c) Payment Of Bills :-30% d) Order A Cheque Book:-5%

S.B.I :- a) Money Transfer:-45% b) Checking Of Your Current Balance:-21% c)

Payment Of Bills :-27% d) Order A Cheque Book:-7%

50%
45%
40%
Money Transfer
35%
30% Checking Of Your Current
25% Balance
20% Pay Bills
15%
10% Order A Cheque Book

5%
0%
Axis Bank S.B.I

Interpretation of the above diagram:

From the above figure, it has been observed that generally the customer transfer their money
& pay bills more in online banking than others function of the banking. Be it a private sector
bank or public sector bank customer uses it for the same purpose. For money transfer of
Axis Bank & S.B.I. it is 40% & 45% respectively. For payment of bills of Axis Bank &
S.B.I is 30% & 27% respectively.

7. Are you availing the De Mat services provided by your bank?

 Axis Bank:- a) Yes:-45% b) No:-55%
S.B.I:- a) Yes:-40% b)No:-60%

70%

60%

50%

40%
Yes
30% No

20%

10%

0%
Axis Bank S.B.I

Interpretation of the above diagram:

It has been observed that 45% of the respondent of Axis Bank avails the De mat services
i.e. the electronic transfer of share, whereas only 40% respondent of the S.B.I. avails the De
mat sevices. Hence it can be interpreted that on an average their many people who do not
avail the digital services , rather they prefer to purchase share through middleman.

8. Do you use E-corner services provided by your bank?

Axis Bank:- a)Yes;- 58% b) No:-42%
S.B.I:- a) Yes:-45% b) No:-55%
 70%

60%

50%

40%
Yes
30% No

20%

10%

0%
Axis Bank S.B.I

Interpretation of the above diagram:

It has been observed from the above figure that 58% of the respondent of Axis Bank
uses the E-Corner services of depositing money whereas 45% of the respondent of
S.B.I takes the advantage of the E-corner sevices. Hence it can be said that on an
average there are many people who ignore these services rather they prefer depositing
their money through physical transaction.
9. Do you think the charges of NEFT & RTGS is reasonable?
Axis Bank:- a) Yes :- 53% b) No:- 47%
S.B.I;- a) Yes :- 54% b) No :- 46%
 56%

54%

52%

50%
Yes
48% No

46%

44%

42%
Axis Bank S.B.I

Interpretation of the above diagram:

It has been observed , from the above figure that 53% respondent of the Axis bank
said that the charges of NEFT & RTGS are reasonable , on the other hand 46%
respondent of the S.B.I. said that the charges are not reasonable . It can interpreted
that more than half of the respondent are satisfied with the charges of the NEFT &
RTGS.

10. Do you use your android bank application provided by your bank?
Axis Bank :- a) Yes :- 73% b) No :- 27%
S.B.I :- a) Yes :- 55% b) No :- 45%
80%

70%

60%

50%

40% Yes
No
30%

20%

10%

0%
Axis Bank S.B.I
Interpretation of the above diagram:
It has been observed from the above figure that 73% respondent of the Axis Bank
uses the android bank application whereas 45% respondent of the S.B.I do not use the
android bank application. Hence it can be interpreted that slowly and steadily each
and every people will use these applications for their own betterment. Therefore it can
be said that Online Banking has a very bright future.

11. What Benefits Do You See In Online Banking?

Axis Bank :- a) Convenience :- 55% b) Speed :- 24% c) Transparency :-
10% d) Time:- 11%
S.B.I :- a) Convenience :- 53% b) Speed :- 21% c) Transparency :-
16% d) Time :- 10%
60%

50%

40% Convenience

30% Speed
Transparency
20%
Time
10%

0%
Axis Bank S.B.I

Interpretation of the above diagram:

It has been observed from the above figure that 55% & 24% respondent of Axis Bank prefer
using Online Banking for convenience and speed respectively , on the other hand 16% &
10% respondent of the S.B.I uses it for transparency & time respectively.Hence it can be
interpreted that customers from both the bank prefer online banking mostly for convenience
and speed as it gives them leisure and faster completion of transaction.

12. Do You Feel Your Account Is Secured In Online Banking?

Axis Bank:- a) Yes :- 50% b) No :- 38% c) Can`t Say :- 12%
S.B.I:- a) Yes:- 45% b) No :- 40% c) Can`t Say :- 15%
 60%

50%

40%
Yes
30%
No

20% Can`t Say

10%

0%
Axis Bank S.B.I

Interpretation of the above diagram:

It has been observed from the above figure that 50% respondent of the Axis Bank feels that
they are secured whereas 12% are in confusion wheather to have trust on their bank or not.O
n the other hand 40% respondent feels that they are not secured and 15% are still in
confusion, Hence it can be interpreted that the customers of the Axis bank feel more secured
than the S.B.I since a lot of scams have been reported in the recent past with The S.B.I.

13. Would You Prefer Using Online Banking Instead Of Visiting Your Bank?
Axis Bank:- a) Yes :- 70% b) No :- 30%
SB.I:- a) Yes: - 55% b) No: - 45%

80%

70%

60%

50%

40% Yes

30% No

20%

10%

0%
Axis Bank S.B.I

Interpretation of the above diagram:

It has been observed from the above figure,that 70% respondent of the Axis Bank will prefer
using online banking system. On the other hand 45% respondent of the S.B.I. will prefer the
traditional method i.e visiting the bank. Hence it can be interpreted that most of the
respondents preferred using Online Banking over there conventional banking system. Thus,
Online Banking has a bright future ahead.
3.4 FINDINGS
4. It has been observed that more than half of the respondent of both the banks were aware of
the benefits of the online banking
5. It has been witnessed that most of the respondent said that they were provided a brief
information about the online banking but there were few respondent who completely
disagreed that they were not at all informed about anything such as `The Online Banking`.
6. It has been observed that generally the customer transfer their money & pay bills
more in online banking than others function of the banking. Be it a private sector bank or
public sector bank customer uses it for the same purpose.
7. It can be interpreted that on an average their many people who do not avail the
digital services , rather they prefer to purchase share through middleman.Hence the DE MAT
services are lacking behind.

8. It can be said that on an average there are many people who ignore E-
CORNERING services rather they prefer depositing their money through physical
transaction.

9. It can interpreted that more than half of the respondent are satisfied with the
charges of the NEFT & RTGS.

10. Hence it can be interpreted that slowly and steadly each and every people will use
these application for their own bettermen. Therefore it can be said that Online Banking have a
very bright future.
11. It can be interpreted that customers from both the bank prefer online banking
mostly for convenience and speed as it gives them leisure and faster completion of
transaction.
12. It can be interpreted that the customers of the Axis bank feel more secured than
the S.B.I since a lot of scams have been reported in the recent past with The S.B.I.

13.It can be interpreted that most of the respondents preferred using Online Banking
over there conventional banking system. Thus, Online Banking has a bright future ahead.
CHAPTER - 4
CONCLUSION & RECOMMENDATION
 QUESTIONNAIRE
Dear Respondent,
I am the student of The Bhawanipur Education Society College. I am doing this research
work to compare the services provided by the public sector bank and the private sector bank
to their respective clients.

1. NAME:-

2. GENDER:- FEMALE □ MALE □

3. AGE GROUP:- 20 -30 □ 30 -40 □ 40 -50 □ 50 > □
4. Are you aware of the benefits of Online banking which are available:-

Yes □ No □
5. Does Your Bank Educate You About The Online Banking Services Being

Offered:- Yes □ No □
6. What Are Your Main Transactions You Do By Internet:-

 Money Transfer □
 Checking Of Your Current Balance □
 Payment Of Bills □
 Order A Cheque Book □
7. Are you availing the De Mat services provided by your bank:-

Yes □ No □
8. Do you use E-corner services provided by your bank:-

Yes □ No □
9. Do you think the charges of NEFT & RTGS is reasonable:-

Yes □ No □
10. Do you use your android bank application provided by your bank:-

Yes □ No □
11. What Benefits Do You See In Online Banking:-

 Convenience □
 Speed □
 Transparency □
  Time □
12. Do You Feel Your Account Is Secured In Online Banking:-

Yes □ No □ Can`t Say □

13. Would You Prefer Using Online Banking Instead Of Visiting Your Bank:-

Yes □ No □