Pramana Research Journal ISSN NO: 2249-2976

A STUDY OF E-BANKING SERVICES PROVIDED BY NATIONALIZED AND

PRIVATE SECTOR BANKS IN TRICHY DISTRICT

Dr.S.P. DHANDAYUTHAPANI MANIVANNAN.S

ASSISTANT PROFESSOR STUDENT

DEPARTMENT OF MANAGEMENT STUDIES DEPARTMENT OF MANAGEMENT STUDIES

ANNA UNIVERITY (BIT CAMPUS) ANNA UNIVERSITY (BIT CAMPUS)

TRICHY TRICHY

ABSTRACT

Net banking is dynamic the banking system, having the major effects on banking
relationships. Banking is currently now not confined to the branches were one has to
approach the branch in person, to withdraw money or deposit a cheque or request a press
release of accounts. In true net banking, any inquiry or dealings is processed on-line with
none relevance the branch (anywhere banking) at any time. Providing net banking is more
and more turning into a "need to have" than a "nice to have" service. cyber web banking,
thus, currently is lot of a normal rather than associate degree exception in several developed
countries because of the actual fact that it's the most cost effective means of providing
banking services.

KEYWORDS: E-Banking, Impact, Fund- transfer

INTRODUCTION

The landscape of India’s money sector is ever-changing as anyplace, anytime-banking,

victimization completely different channels and technology, can bring a multi-fold increase
the reach of technology to rural and remote areas. E-banking is the want of the hour. E-
banking in India has to confront a ton of challenges. The government is introducing
regulative measures from time to time to guarantee dependability and security, however
introduction of technology isn't enough.

Republic of Finland was the 1st country in the world to have taken a lead in E-banking. In
India, it was associate ICICI bank, that initiated to introduce E-banking as early as 1997
below the whole name time. Revolution in the info technology has created the Indian
economy steady inroads into the-banking establishments and has brought regarding a big
amendment in several aspects in the type of cybernation of transactions and new delivery
channels such as net banking, Mobile banking, Telephone-banking, machine-controlled

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Teller Machine (ATM), good Cards, Debit cards, Credit Cards, E-Cheque, Electronic
Transfer Fund (ETF), Electronic Clearing services (ECS), Electronic information Interchange
(EDI), etc.

Apart from a many leading personal players, SBI and financial institution of India area unit
the major public players in the-banking sector. Despite the reality that in the Indian Banking
business public sector banks have immense network, infrastructure and client base, still its
performance is low for e-banking services as compared to its counterpart in the personal
sector.

The Indian Banking industry is one of the fastest growing in the world and India is
projected to become the largest Banking Industry globally.

Major players in the-banking sector are as follows:

Nationalized Banks: State Bank of India, Central Bank of India, Punjab national
Bank, Bank of India, Bank of Baroda, Union bank etc.

Private banks: HDFC, ICICI, Axis, Kotak Mahindra, Yes Bank and so on. Also the
foreign banks such as federal bank, City bank.

LITERATURE REVIEW

Rangnath (2012) in his book Changing scenario of business and Ecommerce ‘E-
banking service- ‘An emerging business tool on India’ has compared the traditional
banking with banking with the use of advance technology and analyzed various
aspects related to e-banking.

Shroff (2007) in his book Modern Banking and Technology has taken the role and impact of
technology in the banking sector.It also includes in depth study of various e-banking services
provided by the banks like ATM, RTGS & CBS.The book also covers Information
technology Act 2000-Issues, IBA report, India vision 2020 and financial sector reforms.

Prof. (Dr) Ashok Kumar Chandra (2015) has done a comparative analysis between public
sector banks and personal sector banks in the Korea region in terms of E-banking services.E-
Banking is the way forward for banking, going on-line for banking has become a trend
among the purchasers and conjointly it helps in rising the relationship between bankers and
customers.As the quality of e-banking is increasing and banks square measure adopting the
latest technology, they square measure prone towards cybercrimes and bigger is the potential
for reputational risks conjointly, therefore, there is a would like to have sound security
controls and robust cyber laws in India.

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R. K. Uppal (2011) has made an attempt to study the problems and prospects in
Punjab related to e-banking; this study is related to the perceptions of employees
towards e-banking. E-channels are preferred among the majority of the employees and
the survival of the public sector banks are depended on the adoption of e-banking. On
one side E-banking is a challenge for public sector banks, on the other side, it
provides a bundle of opportunities which helps them to gain more momentum and
make them competitive in the changing environment. Therefore, public sector banks
should adopt the technology as a necessity not as an option as IT has no other
choice.

Monika Kashyap (2012) in her study attempted to present the status of internet
banking in India and its implications for the Indian banking industry. The introduction
of internet banking has helped the financial institutions to cope with new economic
and financial policies of the banks. Internet banking is on the rise and it becomes a
powerful tool for improving customer satisfaction and increasing cross-selling
opportunities. At the same time internet banking has its pitfalls too. There are a
number of challenges which banks must keep in mind.

JayshreeChavan (2013) study reveals that e-banking provides several advantages to

customers and banks; it additionally aggravates ancient banking risks. Compared to
developed countries, developing countries face several impediments that have an effect
on the prosperous implementation of ebanking initiatives. The bank ought
to additionally offer some alternative advantages like dilated product offerings and extended
geographic reach. With all these advantages banks will acquire success on
the money market. however e-banking is a tough business and banks face a ton of challenges.
.

Elavarasi (2014) Studied the Customer Awareness and Preference towards E-Banking
Services.It is found from this study that the younger generation were using electronic banking
services are more as compared to older generation because of new innovation in information
technologyE-banking technology is highly useful to customers as well as banks and other
organizations like government organizations, to increase productivity, efficiency, service
quality of banks, and expansion of banks globally.

M.Panneerselvam (2015) has analyzed the role of e-banking in the banking sector.Indian
banks are marching towards modern banking and changing their traditional look.It is a great
change in the banking industry because of information technology development.They are
trying to utilize the information technology in banking business and provide technology
based banking products and services to their customers.

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RESEARCH METHODOLOGY

E-banking service users of nationalized and private banks in Trichy district constitute the
universe. Since the study is ‘An analytical study of E-banking services provided by
nationalized and private sector banks in Trichy district the researcher has randomly selected
three nationalized banks and three private banks among the banks.

Types of Data:

Both Primary & Secondary data are used in this research. The primary data is collected in
order to fulfill the information requirements of certain objectives. Thus, primary data is
collected to describe the present current scenario of e-banking services provided by selected
banks, to identify the problems faced by e-banking service users and bankers. The secondary
data is collected to fulfill the information requirements of few objectives.

Sources of Data:

Primary data – primary data is collected with the questionnaire from 430 E-Banking service
users.

Secondary Data – Reference books, Research journals & Research Articles , Internet
Newspapers, Annual Reports of Banks.

Sampling Design:

Selection of Banks:

The details of total nationalized and private sector banks in Trichy district are given
below:

Table 1.1 Nationalized and private sector banks in Trichy district

Sr. No Nationalized Banks Private Banks Total No of Banks

1 21 07 28

For the purpose of research 3 nationalized and 3 private sector banks of Trichy district are
selected as follows

Table 1.2 List of Selected nationalized and private sector banks.

Sr. .No Nationalized Banks Private Banks

1 State Bank of India ICICI Bank

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2 Punjab National Bank HDFC Bank

3 Bank of Baroda Axis Bank

Selection of Taluk:

There are 11 taluk in Trichy district,which includes Lalgudi, Manachanallur, Manapparai.

Marungapuri, Musiri, Srirangam, Thiruverumber, Thottiyam, Thuraiyur, Tiruchirappalli west,
Tiruchirapalli East.

Tools for Data Analysis:

Statistical tools are used for data analysis. The computer software ‘SPSS’ is used for data
analysis. The tools used for data analysis of various parameters are given below.

Frequencies analyses based on some variables associated with the demographic profile. In the
frequency analysis, demographic characteristics are analyzed that includes Age, Gender,
Education, and Occupation.

Age Group Frequency Percent

Valid Less than 25 Yrs. 66 15.3

25 to 50 Yrs. 230 53.5

Above 50 Yrs. 134 31.2

Total 430 100.0

Gender Frequency Percent

Valid Male 317 73.7

Female 113 26.3

Total 430 100.0

Education Frequency Percent

Valid Graduate &Less 116 27.0

P.G. 209 48.6

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Professional 105 24.4

Total 430 100.0

Occupation Frequency Percent

Valid Service 228 53.0

Business 87 20.2

Agriculture 21 4.9

Others 94 21.9

Total 430 100.0

INFERENCES: It is clearly given from the frequency analyses table that major role of 25-
50 years of age group people are been 53.5%.The male plays major role of 73.7%.Post
graduate candidates are been servicing more number of 48.6% for the E-banking services.
The occupation of the people has service providing job to occur 53% to be using E-banking
services.

The frequency of the types of Bank to be analysed through the nationalized and private banks
to compared with in the district.

Types of banks Frequency Percent Valid Cumulative

Percent Percent

Valid Nationalized 330 76.7 76.7 76.7

Bank

Private Bank 100 23.3 23.3 100.0

Total 430 100.0 100.0

INTERPRETATION:

Larger part for example 77% of respondents are having a record in nationalized bank and
23.3% respondents are having their record in private part bank.

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Analysis of frequency based on Bank name through Trichy district.

Bank Frequency Percent Valid Cumulative

Name Percent Percent

Valid SBI 110 25.6 25.6 25.6

BOB 115 26.7 26.7 52.3

PNB 105 24.4 24.4 76.7

ICICI 39 9.1 9.1 85.8

HDFC 38 8.8 8.8 94.7

Axis 23 5.3 5.3 100.0

Total 430 100.0 100.0

INTERPRETATION:

Accounts of respondents in nationalized banks are practically same like in Bank of Baroda
27%, State Bank of India 26% and Punjab National Bank 24% individually. Whereas in
private banks 9% in ICICI, 9% HDFC and just 5% of Axis bank clients. It is seen that all the
administration workers have a pay account in nationalized bank Most of the administrations

gave by nationalized and private division is same still the inclination of the respondent is for
Nationalized bank is more when contrasted with the private bank.

FINDINGS

1.It is seen that lion's share, for example 54% respondents have a place with the age gathering
of 25 to 50 years, 31% respondents from the age gathering of above 50years and just 15%
from under 25 years individually. It is found in the gathered data that utilization of e-banking
administrations is more in the age bunch 25 to 50 years when contrasted with other age
gatherings.

2.It is seen that the quantity of male respondents in contrast with female respondent is more.
The extent of female respondents utilizing e banking administrations is just 26.3%.

3.100% respondent clients are instructed as Postgraduate clients are greater part 49%, trailed
by 27% alumni and less and 24% expert individually. It is seen that contrasted with other

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instructive class, respondents who are Postgraduate use the e-banking administrations to the
greatest.

4.Above data shows that 53% respondents have a place with salaried class, 20%
Businessmen, 5% are agriculturist and 22% percent have a place with other word related
gathering.73% respondents who use e-banking administrations have a place with
administration and business class.

5. Bigger part for instance 77% of respondents are having a record in nationalized bank and
23.3% respondents are having their record in private part bank.

6. Records of respondents in nationalized banks are essentially same like in Bank of Baroda
27%, State Bank of India 26% and Punjab National Bank 24% separately. While in private
banks 9% in ICICI, 9% HDFC and only 5% of Axis bank customers. It is seen that all the
organization laborers have a compensation account in nationalized bank Most of the
organizations gave by nationalized and private division is same still the tendency of the
respondent is for Nationalized bank is more when diverged from the private bank.

CONCLUSION

E-Banking has become a fundamental weapon for endurance and it prompts definitely change
the-banking areas in around the world. After the choice of the Government of India for
demonetization on eighth November 2016, expanded utilization of e-banking administrations
are additionally inescapable to do the-banking exchange. Electronic banking has changed the
standpoint of banking industry worldwide as it has furnished tremendous chances to keeps
money with different e-banking administrations. From the examination it tends to be
presumed that presentation of Private segment banks as far as administration quality,
straightforwardness and level of fulfilment is superior to the nationalized banks.

REFERENCES

1.Ranganath, N. (2012). E-banking Service – An Emerging Business Tool in India. Prasant

Publication ,Jalgaon.

2. . Shroff, F. T. (2007). Modern Banking Technology. New Delhi: Northen Book Center.

3. Prof.(Dr) Ashok Kumar Chandra, R. B. (2015). A Comparative Study of E-Banking in

Public and Private Sector Banks with Special Reference to (SBI and HDFC). International
Journal of Management and Commerce Innovations.

4. R.K.Uppal,R.J.(2007).E-banking in India: Challenges and Opportunities. New Century

Publications.

5. Monika Kashyap, D. D. (2012). Internet Banking: Boom or Bane. Gian JyotiE-Journal.

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Pramana Research Journal ISSN NO: 2249-2976

6. Chavan, J. (June 2013). Internet Banking- Benefits And Challenges In An Emerging

Economy. International Journal Of Research In Business Management (IJRBM).

7. Miss. R. Elavarasi, D. (2014). Customer Awareness and Preference towards E-Banking

Services of Banks (A Study of SBI). International Research Journal of Business and
Management – IRJBM.

8. M. Panneerselvam, R. M. (2015). Role of e-banking in banking sector . International

Journal of Multidisciplinary Research and Development.

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