Project on E-banking

THE STUDY ON CUSTOMER AWARENESS TOWARDS INTERNET

BANKING SERVICES PROVIDED BY DENA BANK WITH SPECIAL

REFERENCE TO T.NAGAR BRANCH

BY

S.PRARTHANA

(Reg. No: 1017472)

Of

DHANALAKSHMI COLLEGE OF ENGINEERING

A PROJECT REPORT

Submitted to the

FACULTY OF MANAGEMENT STUDIES

In partial fulfillment of the requirements

For the award of the degree

Of

MASTER OF BUSINESS ADMINISTRATION

September, 2011

DHANALAKSHMI COLLEGE OF ENGINEERING

Dr.V.P.R. Nagar, Manimangalam, Tambaram, Chennai-601 301

DEPARTMENT OF MANAGEMENT STUDIES

BONAFIDE CERTIFICATE

Certified that this project report titled "THE STUDY ON CUSTOMER

AWARENESS TOWARDS INTERNET BANKING SERVICES PROVIDED

BY DENA BANK WITH SPECIAL REFERENCE TO T.NAGAR BRANCH " is

the bonafide work of MISS. S.PRARTHANA (Register No. 1017472) who carried

out the research under my supervision. Certified further, that to the best of my

knowledge the work reported herein does not form part of any other project report or

dissertation on the basis of which a degree or award was conferred on an earlier

occasion on this or any other candidate.

INTERNAL GUIDE HEAD OF THE DEPARTMENT

Date: ……………………

DECLARATION

I, S.PRARTHANA of M.B.A final year, DEPARTMENT OF

MANAGEMENT STUDIES, DHANALAKSHMI COLLEGE OF

ENGINEERING, Manimangalam, Chennai - 601 301, hereby declare

that this project work titled, "THE STUDY ON CUSTOMER

AWARENESS TOWARDS INTERNET BANKING SERVICES

PROVIDED BY DENA BANK WITH SPECIAL REFERENCE TO

T.NAGAR BRANCH" , is submitted for the partial fulfillment in M.B. A.,

of DHANALAKSHMI COLLEGE OF ENGINEERING, CHENNAI.

This is purely original work of mine with declaration and effort.

DATE: (S.PRARTHANA)

ACKNOWLEDGEMENT

It is my great pleasure to regard my deep sense of gratitude to the Honorable

Chairman Dr. V.P. Ramamurthi, Ph.D., the Secretary Dr. R. Jayachandrasingh,

Ph.D., and the Principal Mr. V. Subramanian, M.E., Dhanalakshmi College of

Engineering, Chennai, for the patronage and all the facilities offered to complete my

project successfully.

I take this opportunity to convey my sincere thanks to the Head of the

Department Dr. G. Veeramani, M.com, M.Phil, MBA., Ph.D., for his guidance in

the successful completion of the project.

I am very much pleased to take this privilege to extend my hearty thanks to my

Internal Guide Miss. A. Jebakerupa Roslin M.B.A., M.A., B.Ed., (M.Phil)., for her

support, innovative & energetic encouragement and valuable and invariable

suggestions in carrying out this project successfully.

I would like to express my deep sense of gratitude and heartfelt thanks to

Mr.R.Jothi Kalingaraayan, Asst. General Manager of Dena bank in T.Nagar

branch and all other employees for providing me opportunity to do project in their

company and for their valuable guidance.

Last but not least, I wish to convey my sincere thanks to all the Staff members

of the Department of Management Studies and my friends for their help and

support.

I also tank my beloved parents for their best effort and comfort rendered to me

in completing the study successfully. Above all by no means I thank my God

Almighty for showering his divine blessing in terms of knowledge and comfort in

successful completion of the project.

ABSTRACT

Banking system occupies an important place in a nation's economy. A banking

institution is indispensable in modern society. It plays a pivotal role in the economic

development of a country and forms the core of the money market in an advanced

country. Without a sound and effective banking system in India it cannot have a

healthy economy. The banking system of India should be able to meet new challenges

posed by the technology and any other external and internal factors.

Dena bank offers a wide range of banking products and financial services to

corporate and retail customer through a variety of delivery channels and through its

specialized subsidiaries and affiliates in the areas of investment banking. The study is

about the customer awareness towards internet banking service provided by Dena bank

with special reference towards T.Nagar branch. 150 samples are collected from the

customers. Different analysis has been done by using the statistical tools. The study is

hoped to be essential and good to reveal certain facts.

Data collection method was adopted, in which questionnaire is administered

by adopting directing interview method to carry out project work. The information

collected was processed, coded and tabulated. The tabulated information was analyzed

through percentage method, chi-square, and correlation analysis. From this inferences

were drawn. Based on the inference suggestions and recommendations were given.

CHAPTER

No.

TITLE PAGE No.

I

INTRODUCTION 1

OBJECTIVES OF THE STUDY 3

NEED FOR THE STUDY 4

SCOPE OF THE STUDY 4

INDUSTRY PROFILE 5

COMPANY PROFILE 8

II REVIEW OF LITERATURE 21

III RESEARCH METHODOLOGY 34

IV DATA ANALYSIS AND INTERPRETATION 38

V SUMMARY AND CONCLUSION 62

ANNEXURE

BIBLIOGRAPHY

LIST OF TABLES

TABLE No. TITLE OF THE TABLE PAGE No.

4.1 Distribution of respondents according to their Gender

4.2 Distribution of respondents according to their Age

4.3 Distribution of respondents according to their Occupation

4.4 Distribution of respondents according to their Income

Level

4.5 Distribution of respondents according to their Account

held with the bank

4.6 Distribution of respondents according to their

Awareness about Dena bank


Convenient Mode of banking


Awareness about the Internet banking services


Usage of Internet banking services


Period of Usage of Internet banking services

4.11 Distribution of respondents according to the transactions

they made through Internet banking services

4.12 Distribution of respondents reason for not using

Internet banking services


purpose of using Internet banking services


satisfaction level in the Internet banking services

4.15 Distribution of respondents reason for their

satisfaction towards Internet banking services

4.16 Distribution of respondents reason for their dis-


4.17 Distribution of respondents with reference to the

facilities offered by the bank for Internet banking

services4.18 Distribution of respondents according to duration of

their Usage of Internet banking services

4.19 Distribution of respondents according to Frequent

Usage in Internet banking services


opinion in Internet banking services

LIST OF CHARTS

CHART No. TITLE OF THE CHARTS PAGE No.

4.1 Distribution of respondents according to their Gender

4.2 Distribution of respondents according to their Age

4.3 Distribution of respondents according to their Occupation

4.4 Distribution of respondents according to their Income

Level

4.5 Distribution of respondents according to their Account

held with the bank


Awareness about Dena bank


Convenient Mode of banking


Awareness about the Internet banking services


Usage of Internet banking services


Period of Usage of Internet banking services

4.11 Distribution of respondents according to the transactions

they made through Internet banking services

4.12 Distribution of respondents reason for not using

Internet banking services


purpose of using Internet banking services


satisfaction level in the Internet banking services

4.15 Distribution of respondents reason for their


4.16 Distribution of respondents reason for their dis-


4.17 Distribution of respondents with reference to the

facilities offered by the bank for Internet banking

services4.18 Distribution of respondents according to duration of

their Usage of Internet banking services

4.19 Distribution of respondents according to Frequent

Usage in Internet banking services


opinion in Internet banking services

CHAPTER I

1

INTRODUCTION

Customer awareness is about making the customer aware of his/her rights. It is

a marketing term which means that customers are aware of products or services, its

characteristics and the other marketing P's (place to buy, price, and promotion). High

prices, duplicate articles, underweight and under - measurements, rough behavior,

undue conditions, artificial scarcity are some of the ways by which customers are

exploited by manufacturers and traders. Limited information, limited supplies and low

literacy are factors causing exploitation of customers.

Customer awareness is a very important element as we attempt to move

forward a close out sales. This can be an issue both online and offline with really the

same science behind each of them.

There are so many stages of awareness in customer. Which are as follows?

1. The most aware - customer knows of your product, knows what it does, and

knows he wants it.

2. Customer knows of your product, but doesn't yet want it.

3. New Product - customer knows or recognizes that they want what the product

does... but doesn't know that there is a product, yours, that will fulfill

their want.

4. New products that solve NEEDS - customer has a need they want fulfilled

but isn't aware of the connection between their need and your product.

The completely unaware market.

However, an organized and systematic movement to safeguard the interest of

customers is a recent phenomenon. The customers have .o be aware not only of the

commercial aspects of sale and purchase of goods but also of the health and security

aspects. Food safety has become an important element of customer awareness these

days. In case of food products, its quality depends not cm on its nutritional value, but

also on its safety for human consumption. Consumption of contaminated or

adulterated food is a major cause of human illness and suffering.

This called for strong legal measures to ensure that the manufacturers and

sellers observe uniformity and transparency in prices, stocks and quality of their

2

goods. Enactment of Customer Protection Act, 1986 was one of the most important

steps taken to protect the interests of customers. The provision of the Act came into

force, with effect from July 1, 1987. The act recognizes customer's right to seek

redresses and right to customer education. The salient features of the Act are as

follows:-

Applies to all goods and services unless specifically exempted by the Union

Government;

Covers all the sectors whether private, public or cooperative;

Enshrines the customer's rights related to safety. information, choice,

representation and redress and customer education.

The act gives customers an additional remedy besides those which may be

available to them under the provisions of other existing laws and they are free

to choose the remedy.

Empower customers seeking discontinuance of certain unfair and restrictive

trade practices, defects or deficiencies in services and stopping in services or

withdrawal of hazardous goods from the market.

3

OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE:

To study customer awareness about the Internet Banking services provided by

Dena bank with special reference to T.Nagar branch.

SECONDARY OBJECTIVES:

To analyze customer satisfaction level in the internet banking services

To know the reason for preferring internet banking service in Dena bank

To know the customers perception about the internet banking services.

4

NEED FOR THE STUDY:

Dena bank offered Internet banking since 24th May 2008. But the fact is that

there are only limited customers who use this facility, compared to other services. Hence

to enable the awareness of this service in the minds of the customers the researcher is

interested to study "Customer awareness towards the internet banking services provided

by Dena bank with special reference to T.Nagar branch" in terms of

Factors determining customer awareness towards the internet banking services.

To identify the customers' perception about the internet banking service.

To trace out the expectation of customer towards the internet banking services.

SCOPE OF THE STUDY:

The study entitled "Customer awareness towards internet banking services

provided by Dena bank with special reference to T.Nagar branch" aims to find out the

awareness level and the effectiveness of Internet banking service provided by Dent

bank to the customers. The analysis will help to know the awareness level of customers

regarding the internet banking services. Along with the satisfaction level of tie customers

in the internet banking services and the customer's perception regarding the internet

banking service at Dena bank.

5

Industry Profile:

Banking in India originated in the first decade of 18th century. The General

Bank of India came into existence in 1786. This was followed by Bank of Hindustan.

Both these banks are now defunct. The oldest bank in existence in India is the State

Bank of India being established as "The Bank of Bengal" in Calculate in June 1806. A

couple of decades later, foreign banks like Credit Lyonnais started their Calcutta

operations in the 1850s. At that point of time, Calcutta was the most active trading

port, mainly due to the trade of the British Empire, and due to which banking activity

took roots there and prospered. The first fully Indian owned bank was the Allahabad

Bank, which was established in 1865. By the 1900s, the market expanded with the

establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of

India, in 1906, in Mumbai - both of which were founded under private ownership.

The Reserve Bank of India formally took on the responsibility of regulating the

Indian banking sector from 1935. After India's independence in 1947, the Reserve

Bank was nationalized and given broader powers. The banking in India was

controlled aid combated by the presidency banks, namely, the Bank of Bombay, the

Bank of Bengal, and the Bank of Madras -which later on merged to form the Imperial

Bank of India, and Imperial Bank of India, upon India's independence, was rename the

State Bank of India. The presidency banks were like the central banks and discharged

most old the font tins of central banks. They were established under charters from the

British Eats India Company. The exchange banks, mostly owned by the Europeans,

concentrated on financing of foreign trade. Indian joint stock banks were generally

under capil lazed a i d lacked the experience and maturity to compete with the

presidency banks, and the exchange banks. There was potential for many new banks

as the economy was growing Under these circumstances, many Indians came forward

to set up banks, and many banks were set up at that time, and a number of them set up

around that time continued o survive and prosper even now like Bank of India and

Corporation Bank, Indian Bank, Bank of Baroda, and Canada Bank.

b. Growth and Present Status of the Industry:-

By the 1960s, the Indian banking industry has become an in important tool to

facilitate the development of the Indian economy. At the same time, it has emerged as a

large employer, and a debate has ensued about the possibility to nationalize the

6

banking industry. Indira Gandhi, the-then Prime Minister o: India expressed the

intention of the GOI in the annual conference of the All India Congress Meeting in a

paper entitled "Stray thoughts on Bank Nationalization”

The paper was received with positive enthusiasm. Thereafter, her move was

swift and sudden, and the GOI issued an ordinance and nationalized the 14 largest

commercial banks with effect from the midnight of July 19, 1969. Jayaprakash

Narayan, a national leader of India, described the step as a "masterstroke of political

sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the

Banking Companies (Acquition and Transfer of Undertaking) Bill, and it received the

presidential approval on 9th August, 1969. A second dose of nationalization of 6 more

commercial banks followed in 1980. The stated reason for the nationalization was to

give the government more control of credit delivery. With the second dose of

nationalization, the GOI controlled around 91% of the banking business of India.

After this, until the 1990s, the nationalize banks grew at a pace of around 4% closer to

the average growth rate of the Indian economy.

c. Future of the Industry:-

A healthy banking system is essential for any economy striving to achieve

good Growth and yet remain stable in an increasingly global business environment.

The Indian banking system, with one of the largest banking networks in the world,

has witnessed a series of reforms over the past few years like the deregulation of

interest rates, dilution of the government stake in public sector banks (PSBs), and the

increased participation of private sector banks. The growth of the retail financial

services sector has been a key development on the market front. Indian banks (both

public and private) have not only been keen to tap the domestic market but also to

compete in the global market place. New foreign banks have been equally keen to

gain a foothold in the Indian market. The momentum in credit growth has been

maintained during 2005-06 due to two factors: The corporate sector has stepped up its

demand for credit to fund its expansion plans; there has also been a growth in retail

banking. However, even as the opportunities increase, there are some issues and

challenges that Indian banks will have to contend with f they are to emerge successful

7

in the medium to long term. This report discusses these issues and challenges - both

intrinsic and external, such as

Consolidation

Consolidation, which has been on the counter over the last year or so, is likely

to gather momentum in the coming years. Post April 2009, when the restrictions on

operations of foreign banks will go, the banking landscape is expected to change

dramatically. Foreign banks, which currently account for 5% of total deposits and 8%

of total advances, are devising new business models to capture the Indian market.

Their full-fledged entry is expected to transform the business of banking in many

ways, which would be reflected in terms of greater breadth of products. Depth in

delivery channels and efficiency in operations. Thus Indian banks have less than three

years to consolidate their position. Despite the stiff resistance from certain segments,

consolidation holds the key to future growth. This view is underpinned by the

following:

Owing to greater scale and size, consolidation can help save costs and Improve

operational efficiency.

Banks will also have to explore different avenues for raising capital to meet

Norms under Basel-II

Owing to the diversified operations and credit profiles of merging banks,

consolidation is likely to serve as a risk-mitigation exercises as much as a

growth Engine.

Though there is no confirmation yet, speculative signals arising from the

market point to the prospect of consolidation involving banks such as Union Bank of

India, Bank of India, Bank of Baroda, Dena Bank, Sta1; Bank of Patiala, and Punjab

and Sind Bank. Further, the case for merger between stronger banks has also gained

ground — a clear deviation from the past when only weak banks were thrust on

stronger banks. There is a case being made for mergers between banks with a distinct

geographical presence coming together to leverage their respective strengths.

8

COMPANY PROFILE

Origin of the Organization:

Dena Bank was founded on 26th May, 1938 by the family of Devkaran Nanjee

under the name Devkaran Nanjee Banking Company Ltd.

It became a Public Ltd. Company in December 1939 and later the name was

changed to Dena Bank Ltd.

In July 1969 Dena Bank Ltd. along with 13 other major banks was

nationalized and is now a Public Sector Bank constituted under the Banking

Companies (Acquisition & Transfer of Undertakings) Act, 1970. Under the provisions

of the Banking Regulations Act 1949, in addition to the business of banking, the Bank

can undertake other business as specified in Section 6 of the Banking Regulations

Act, 1949.

Milestones -

One among six Public Sector Banks selected by the World Bank for

sanctioning a loan of Rs.72.3 crores for augmentation of Tie-II Capital under

Financial Sector Developmental project in the year 1995.

One among the few Banks to receive the World Bank loan for technological

up gradation and training.

Launched a Bond Issue of Rs.92.13 Crores in November 1996.

Maiden Public Issue of Rs.180 Crores in November 1996.

Introduced Tele banking facility of selected metropolitan centers.

Dena Bank has been the first Bank to introduce:

Minor Savings Scheme.

Credit card in rural India Known as "DENA KRISHI SAKH PATRA”

(DKSP)

Drive-in ATM counters of Juhu, Mumbai.

Smart card at selected branches in Mumbai.

Customer rating system for rating the Bank Services.

9

Growth and Development of the Organization:-

The 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 segment of society

especially the weaker section of the society: especially the weaker section of the

society: committed to excellence in serving the public and also excelling in the

corporate values. Corporate excellence ensnare from good corporate governance

exercised by adopting standard of transparency, accountability, professionalism,

social responsiveness, and ethical business practices with this in view, the has been

making efforts for adopting the best practices. The bank commitment management

and to ensure best performance by staff at al the levels to maximize the operational

efficiency. Adopting the corporate governance as a work ethos, the bank is committed

to enhancing the stakeholder’s value.

Present Status of Organization:-

Dena bank might just be another case of bank in trouble. Going by the recent

observations of the accounting department of the bank itself, the bank's capital

adequacy ratio (CAR) and profitability in serious doubts.

An analysis of the financial position of the bank for the year 2002-03, by the

accounts department of Dena bank, copy of which is in the possession of Indian

Express, showed that the bank's CAR stood at 9.33% would go down as low as 6.02%

as per the latest RBI guidelines. In simple terms, a low CAR implies that the bank

would be trouble there is a run on it since it has overexposed itself.

Further, miscellaneous income, which also accounted for the increase in

profits, went up by Rs.32.92 crores of the miscellaneous income was due to transfer

of old credits over five years lying with the bank in suspense receipts / unclaimed

credits.

Another element of doubts in the results is the fact that the bank had reversed

an amount of Rs.18.40 crores to the balance sheet as disputed tax liability. This was

10

based on the expert opinions received by bank on tax consultants and also on a high

court together accounted for Rs.83.40 crores of profit.

2.4 Functional Departments of the Organization:

Dena Bank deals with the following functional departments:

1. Personal

In the Dena Bank Personal Banking section, the organization offer its services

with a personal touch by reaching out to all in various manners, one of them is

through offering a basket of our Deposit Schemes which delivers a strong return on all

you personal savings and our Loan Schemes which provides the required financial

assistance in your times of need.

2. Corporate

Corporate Finance

Dena Bank provided financial assistance to the business entities engaged in

various activities of manufacturing, trading and service.

The financial assistance is provided for setting up new projects, acquiring

assets and also for meeting day to day working capital requirement of the constituents.

These assistances are termed as Long Term Finance & Short Term Finance

respectively.

Term Finance

Term Loan / Finance covers funds required for acquiring means of production

such as land, building and plant and machinery etc. These could be for setting up new

projects or expanding the present activities. Term finance is gernally give for a longer

period and is repayable in installments over the period with or without Moratorium.

The period and the installments are determined based on the repayment capacity of

the project / borrower.

11

Working Capital Finance

Working Capital Finance (WCF) is extended for carrying our normal trading /

manufacturing activities. The working capital finance is provided for a relatively

shorter period generally for a period of 1 year and renewed on yearly basis

considering the performance of the borrower.

The WCF is considered only after project nearing completion and after full tie

up of term loan requirement.

The Working Capital limits of the borrower are assessed by adopting various

methods such as Projected Turnover Method (Nayak Committee Recommendation),

Permissible Bank Finance Method, Cash Budget Method etc. depending upon the

aggregate working capital limit required / enjoyed from the banking system, nature of

activity, production cycle etc. Working Capital finance is in the form of pre-sale and

post-sale limit. In Pre Sale Finance the advance is granted for acquiring Inventory for

production / processing or trading purpose while the Post -Sale Finance is extended

against the receivable. Dena Bank encourages Post-Sale finance in the form of

purchase / discounting of bills etc.

Pre Sales Finance:

Cash Credit Hypothecation / Pledge against Stocks

Packing Credit Hypothecation / Pledge against Stocks

Clean packing Credit Limit

Trust Receipts

Working Capital Loan (Demand / Term)

Post Sales Finance:

Bills discounting / purchase - Inland / Foreign

Cash Credit Hypothecation against Book Debts

Advances against Export Incentives

Purchase of Cheques / Demand Draft

12

Non Fund Based Credit Assistance

The Business units also require Credit Assistance for procurement of Goods,

where the funds are not involved. Such facilities are available against the assured

commitments / guarantee from the Lending Institutions.

Dena Bank is extending such Non Fund Based assistance to me eligible units in the

form of:

Issuance of Guarantee of various types like Performance, Financial, Bid Bond,

Tender Deposit / Earnest Money etc. and

Issuance of Letter of Credit

Deferred Payment Guarantee

Export Credit

Bank extends credit to Exporters at Competitive rates, at both Pre-shipment

and Post-shipment stages.

Recently, Bank has introduced Gold Card Scheme which provides cheaper

export credits to the eligible borrowers. Selected Clients engaged in exports are also

suitably rewarded in the form of Export Credit Denominated h Foreign Currency viz.

PCFC (Pre Shipment) / REBA (Post Shipment Credit).

Specific Schemes

The Bank has devised specific schemes for the following Sectors:

Educational Institutions,

Builders & Developers,

Hospitals,

Hotels & Restaurants &

Entertainment Industry.

3. NRI Desk

With over 1100 branches spread across the country, Dena Bank is your ideal

banking partner if you are a Non-Resident Indian.

13

All transactions by NRIs in Indian Banks are governed by FBI Rules and

Regulations.

4. Priority & SME

These are the sectors where has taken special care to ensure instant sanctions

and approvals for all applicants. Priority Sector Schemes:

Dena Rural Internet Kiosk Scheme

Dena Shakti Scheme

Dena Laghu Udyami Card Scheme

Dena Rural Artisan Credit Card Scheme

Dena Swarozgar Credit Card Scheme.

5. Dena Bill pay:-

Auto Pay Just gives us your bill details; specify your bank account and we will

pay your Sill for you every month from that account. You can specify an upper limit

and bills above this limit will be paid only on you specific instructions.

Phone Pay

Get a SMS alert when bill is due and issue payment instructions in

accordance.

Internet

If you have access to the internet, you can view and pay your bills online at

www.denabank.com. You will receive new bill notifications, due date reminders and

payment confirmations via email.

6. Dena ATM Services

Dena Bank always stands in forefront in understanding it customer's need.

Dena Bank Debit cum ATM Card offers you an easy and convenient way to do all your

transactions and that too within a fraction of seconds. Presently we have more than

380 ATMs all across India. Dena Debit cum ATM Card is your Bank Account in

your pocket. Get your Dena Bank Debit cum ATM Card today and avail round the

clock uninterrupted service. Below is the simple procedure to use this facility:

14

Contact your Branch.

If you don't have Saving or Current Account, first open your account.

Get the Debit/ATM Card Application form from the Branch, fill it up and

submit it to your Branch.

Within 10 days, you will receive your Debit cum ATM Card along with PIN

(Personal Identification Number) and Debit cum Al M Card Booklet.

Activate your card immediately by withdrawing (ash from Dena Bank ATM.

After that you can use your ca d on POS Terminal ( Merchant Establishments)

7. Other Services:-

Dena Bank, your trusted family bank, now is proud to offer a range of

sophisticated banking services by way of

Any-branch banking,

Multi City cheque,

Dena ATM's,

Dena Cards,

Online remittance,

Internet Banking,

Mobile banking,

Tele banking,

Online utility Bill Payment,

Value added Service through ATM,

Kiosks, loans and many more.

With over 1100 branches across the country, we are always ready to serve our

customers, and to offer them the best of the technology-enabled banking products and

services.

15

2.5 Organization Structure and Organization Chart Organization

Structure:-

HEAD OFFICE

REGIONAL OFFICE

BRANCHES

Executive cadres of the organization.

They are Executive Director, General Manager (GM), Deputy General

Managers (DGM), assistant General Managers (AGM), Chief Managers (CM),

Managers and other officers are in the hierarchy at the head office level functioning in

various Departments. The regional Managers heads the Regional Officers who are

assisted by other down in the hierarchy. The Branch is headed by A.GM\CM\ Senior

Managers/Managers depending upon the size of the Branch activities and rendering of

satisfactory customer service. The bank has a very good system of delegating power to

the different functionaries in the hierarchy to facilitate speedy decision- making

process even up to the branch Level.

As mentioned above, the organization chart for a regional office is different

from organization charts of a Head Office as well as Branches. The organization chart

for the regional office where the training has taken place consists of various

designations and responsibilities. The various designations and the persons

responsible for that designation's responsibilities are described as under through the

charts.

16

Product and Service Profile of the Organization Competitors:-

State Bank of India:-

The Bank is actively involved since 1973 in non-profit activity called

Community Services Banking. All our branches and administrative offices throughout

the country sponsor and participate in large number of welfare activities and social

causes. Our business is more than banking because we touch the lives of people

anywhere in many ways. Our commitment to nation-building is complete &

comprehensive.

17

A.C.Katial(DGM)

S.J.Majumdar(AGM)

Devi Singh Channokar(Chief Manager)

G.D. Sinha (Senior Manager)

Hakeem Alam(Manager)

Deepika Kansal(Officer)

Punjab National Bank:-

Established in 1895 at Lahore, undivided India, Punjab National Bank (PNB)

has the distinction of being the first Indian b ink to have been started solely with

Indian capital. The bank was nationalized in July 1969 along with 13 other banks.

From its modest beginning, the bank has grown in size and stature to become a front-

line banking institution in India at present.

A professionally managed bank with a successful track record of over 110

years.

Largest branch network in India - 4525 Offices including 432 Extension

Counters spread throughout the country.

Strategic business area covers the large lndo-Gangetic belt and the

metropolitan centres.

Ranked as 248th biggest bank in the world toy Bankers Almanac, London.

Strong correspondent banking relationships with more than 217 international

banks of the world.

More than 50 renowned international banks maintain their Rupee Accounts

with PNB.

Well equipped dealing rooms; 20 different foreign currency accounts are

Maintained at major centres all over the globe.

Bank of India:-

Bank of India was founded on 7th September, 1906 by a group of eminent

businessmen from Mumbai. The Bank was under private ownership and control till

July 1969 when it was nationalized along with 13 other banks.

Beginning with one office in Mumbai, with a paid-up capital of Rs.50 lakh

and 50 employees, the Bank has made a rapid growth over the years and blossomed

into a mighty institution with a strong national presence and sizable international

operations. In business volume, the Bank occupies a premier position among the

nationalized banks.

18

The Bank has 3021 branches in India spread over all states/ union territories

including 136 specialized branches. These branches are controlled through 48 Zonal

Offices. There are 28 branches/ offices (including three representative offices) abroad.

The Bank came out with its maiden public issue in 1997 and follow on Qualified

Institutions Placement in February 2008. Total number of shareholders as on

31/03/2009 is 2, 35589.

While firmly adhering to a policy of prudence and caution, the Bank has been

in the forefront of introducing various innovative services and systems. Business has

been conducted with the successful blend of traditional values and ethics and the most

modern infrastructure. The Bank has been the first among the nationalized banks to

establish a fully computerized branch and ATM facility at the Mahalaxmi Branch at

Mumbai way back in 1989. The Bank is also a Founder Member of SWIFT in India. It

pioneered the introduction of the Health Code System ir 1982, for evaluating/ rating

its credit portfolio.

Bank of Baroda:-

Bank of Baroda believes in the strength and integrity of relationships built

with its customers like you. With over 101 years of experience in the banking industry

and a wide network of over 3000 branches all over the county, it has always been

active in extending financial support and adapting to customer's charging needs.

Its Deposit Products, Retail Loans, Credit Cards and Debit Cards help the

customers with their growing financial needs. With facilities like Lockers it ensure

that customer's valuables are safe with it. Its countrywide branches offer the

customers convenience and ease in operating them account wherever they are. Its 24-

hour ATMs enable them to withdraw cash, check their account balance and request for

a new cheque book even after banking hours.

Faster technology for better service:-

Baroda Internet Banking / Baroda Mobile Banking, its latest Internet and

Mobile banking initiatives enable them to operate their account just as they would in

any of its branches. The customers can through the Internet check their balance,

19

request for cheque books and print account details. Choose from its various products

and services, that the bank sincerely feel will put a smile on customers face; an

investment it would like to bank on forever.

Different Bank Parameters:-

Name of the Bank

Last Price

Market Cap (Rs. Cr)

Net Interest Income

Net Profit Total Assts

SBI 2,266.4

5

143,892.43 63,788.43 9,121.24 964,432.08

PNB 917.45 28,927.43 19,326.16 3,090.88 246,918.62

Bank Of India 387.50 20,350.54 16,347,36 3,007.35 225,501,75

Bank of Baroda 499.50 18,195.11 15,091.58 2,227.20 227,406.73

Market Profile Of The Organization:-

Dena Bank is an India-based company which is engaged in treasury,

corporate/wholesale banking, retail banking, and other banking operations. The

deposit schemes offered by the Company include Premium Savings Account Scheme,

Premium Current Account Scheme, Dena Savifix Deposit Scheme, Dena Freedom

Deposit Scheme, Dena Samruddhi Deposit Scheme, Dena Fixed. Deposit Scheme,

Dena Senior Citizen Scheme, Dena Recurring Deposit Scheme, Dena Loan Linked

Recurring Deposit Scheme, Dena Minor Savings Scheme, and Dena Alpa Bachat

Khata. It offers services, such as any branch banking, multi city cheque. automated

teller machines (ATMs), Dena Cards, online remittance, Interr.et banking, mobile

banking, tele-banking, online utility bill payment, and value-added Service. During

the fiscal year ended March 31, 2009, the total number of branches comprised of

1184.

Dena Bank. The Company's principal activity is to provide commercial

banking and other related services. The Company also provides in merchant banking,

asset management and other related services. The company's banking products and

services are provided through 1184 branches offices, 387 ATMs all over India. The

Company operates only in India.

20

The Company's principal activity is to provide commercial banking and other

related services. The Company also provides in merchant banking, asset management

and other related services. The company's banking product:; and services are provided

through 1184 branches offices, 387 ATMs all over India. The Company operates only

in India.

Dena Bank - Key Data:-

Ticker 523121 Country INDIAN

Exchanges BOM Major Industry : Financial

Sub Industry : Commercial Banks

2009 Sales 38,783,302,000

(year Ending Jan 2010)

Employees : 9,883

Currency: Indian Rupees Market Cap : 25,340,829,720

Fiscal Yr

Ends:

March Share Outstanding: 286,823,200

Share Type : Ordinary Closely Held

Shares :

146,820,000

21

CHAPTER II

22

REVIEW OF LITERATURE

INTRODUCTION

The process of development along with the expanding globalization and

liberalization process has increased the number of customer related issues. Customer

protection has earned an important place in the political, economic and social agendas

of many nations. In India, the Government has taken many steps including legislative, to

protect customers.

Education is a lifelong process of constantly acquiring relevant information,

knowledge and skills. Customer education is an important part of this process and is a

basic customer right that must be introduced at the school level. Customers by definition

include all citizens who are, by and large the biggest group, who are affected by

almost ail government, public or private decisions. The most important step in

customer education is awareness of customer rights. However, customer education is

incomplete without the responsibilities and duties of customers, and this influences

individual behavior to a great extent.

Customer awareness is the knowledge that a customer should have about his/her

legal rights and duties. It is must for a customer to follow these rights. It is implemented

for the protection of the customer, so that the customer is not exploited by

the seller of the products.

Customer awareness, which refers to a buyers knowledge of a particular product

or company, allows the buyer to get the most from what he buys. Customers know more

about their choices when they have product information and benefit from knowing their

rights, hearing about alerts and warnings and finding out about safety issues.

Anyone who consumes goods is a customer. Customers get exploited in the

market. They respond to advertisements and buy goods. Generally advertisements do

23

not give all the information that a customer needs to know or wants to know about a

product.

Customer awareness is a marketing concept that measures customers' knowledge of a

brand's existence. At the aggregate (brand) level, it refers to the proportion of

customers who know of the brand. Customer awareness remains fundamental to

customer life us the interaction initiation point to the brands. The approach takes into

account sources of brand equity - customer awareness, customer/brand loyalty, and

image (perceptions/associations) in the minds of customer.

Measurement driven conceptualization

Customer awareness means the extent to which a brand associated with a

particular product is documented by potential and existing customers either positively

or negatively. Creation customer awareness is the primary goal of advertising at the

beginning of any product's life cycle in target markets, and has influence on buying

behaviour of a buyer. All of these calculations are, at best, approximations. A more

complete understanding of the brand can occur if multiple measures are used.

Brand equity is the positive effect of the brand on the difference between the

prices that the customer accepts to pay when the brand known compared to the value of

the benefit received.

There are two schools of thought regarding the existence of negative brand

equity. One perspective states brand equity cannot be negative, hypothesizing only

positive brand equity is created by marketing activities such as advertising, PR, and

promotion. A second perspective is that negative equity can exist, due to catastrophic

events to the brand, such as a wide product recall or continued negative press

attention.

Colloquially, the term "negative brand equity" may be used to describe a

product or service where a brand has a negligible effect on a product level when

compared to a no-name or private label product. The brand-related negative intangible

assets are called "brand liability", compared with "brand equity".

24

Brand recognition - Either the brand name or both the brand name and category

name are presented to respondents.

Brand recall - the product category name is given to respondents who are asked to

recall as many brands as possible that are members of the category.

Top of mind awareness - as above, but only the first brand recalled is recorded

(also known as spontaneous brand recall).

Research on metrics

There has been discussion in industry and practice about the meaning and value

of various customer awareness metrics. Recently, an empirical study appeared to put this

debate to rest by suggesting that all awareness metrics were systematically related,

simply reflecting their difficulty, in the same way that certain questions are more

difficult in academic exams.

Brand recall

Brand Recall is the extent to which a brand name is recalled as a member of a

brand, product or service class, as distinct from brand recognition.

Common market research usage is that pure b -and recall requires "unaided recall".

For example a respondent may be asked to recall the names of any cars he may know, or

any whisky brands he may know.

Some researchers divide recall into both "unaided" and "aided" recall. "Aided

recall" measures the extent to which a brand name is remembered when the actual brand

name is prompted. An example of such a question is "Do you know of the "Honda"

brand?"

In terms of brand exposure, companies want to look for high levels of unaided

recall in relation to their competitors. The first recalled brand name (often called "top of

mind") has a distinct competitive advantage in brand space, as it has the first chance of

evaluation for purchase.

25

Brand Recognition

Brand Recognition is the extent to which a brand is recognized for stated brand

attributes, parts, offerings, or communications.

In some cases brand recognition is defined as aided recall - and as a subset of

brand recall. In this case, brand recognition is the extent to which a brand name is

recognized when prompted with the actual name.

A broader view of brand recognition is the extent to which a. brand is

recognized within a product class for certain attributes. Logo and tagline testing can be

seen as a form of brand recognition testing. For example, if a product name can be

associated with a certain tagline, logo or attribute a certain level of brand recognition is

present.

Stability of responses

While customer awareness scores tend to be quite stable at aggregate (level)

level, individual customers show considerable propensity to change their responses to

recall based customer awareness measures. For top of mind recall measures, customers

give the same answer in two interviews typically only 50% the time. Similar low levels

of consistency in response have been recorded for other cues to elicit brand name

responses

DEFINITION:

Making existing and potential customers knowledgeable about

products/services, customer awareness programs create more informed buying

decisions Customers cannot purchase products and service if they do not know they

exist.

26

A lack of customer awareness in any industry can harm sales. If specific

products and services are better known, those products and services will remain on the

front line in sales. Therefore, it is important to implement customer awareness programs

that will introduce and make the target audience aware of the products and services a

company offers.

Customer awareness is the process of notifying the public or target customers

about new products, recalls on products, disease outbreaks, public service information

and many other types of news. Many companies use certain advertising mediums like

newspapers or radio ads to promote customer awareness. Informing the public about

vital information or new products plus positive word-of-mouth experiences can have; a

synergistic effect on disseminating information amidst the public. Following are some

steps you can take to create customer awareness about your product or public service

information.

Need for Customer Awareness:

1) It has been observed that the people for whom various schemes have been taken

up by Bureau of Indian Standards (BIS), in fact, do not get benefit as expected.

This is mainly because they are not fully aware of these schemes and their

benefits.

Also, only knowledgeable and alert customers aware of their rights and

responsibilities can protect themselves effectively. The need of the hour is,

therefore, to educate the common customers particularly those in rural areas

who are more susceptible to exploitation. Once they are educated and made

aware of the schemes that have been drawn up for their benefit and also the

redressal forum that is available, the benefit of various schemes, in true sense,

will reach the common customers of the country.

It is, therefore, our bounden duty to play our part jointly and effectively in

disseminating various schemes to the common customers of the country. In

this regard, the role of the voluntary customer organizations, customer

27

activists, non-governmental organizations, educational institutions and media

cannot be ignored.

2) Making existing and potential customers knowledgeable about products/services,

customer awareness programs create more informed buying decisions.

Customers cannot purchase products and services if they do not know they

exist. A lack of customer awareness in any industry can harm sales. If specific

products and services are. better known, those products and services will remain

on the front line in sales. Therefore, it is important to implement customer

awareness programs that will introduce and make the target audience aware of

the products and services a company offers. Customer awareness programs can

be initiated through the utilization of flyers, brochures, television, radio, guides,

fact sheets, information posted to a Web site, school programs, and other

sources depending upon the topic and the message delivered.

3) We need it so we will not be misled by producers, it explains if what we buy is

worth to our money and not harmful to us and to environment.

Many people are ignorant of their rights to get protected against the

exploitation by so many others. So when there is a forum for such redress of

grievances there seems to be no such exploitation by many; and becomes a rare

one. So in Older to get a clear picture of the level of exploitation of customers,

the awareness is required.

Importance of Customer Awareness

Customer awareness is a term used to describe the awareness of a potential or

current buyer about a particular product or company. Customer awareness can be as

simple as a shopper remembering a television commercial or as specific as a customer

delving into the manufacturing origins of a specific product.

Function

28

Customer awareness plays a key role in customer decision making. By increasing

a potential or current customer's knowledge about a product, service or business, a

healthy economic environment is established in which customers are informed and

protected and businesses are accountable.

Considerations

Customer education is an ongoing process that considers a variety of factors,

including price, reputation, personal knowledge, history, social issues and other

factors.

Benefits

There are several significant benefits to customer awareness for both individuals

and society as a whole.

The benefits of customer awareness for individuals include enhanced critical

thinking, improved life skills and increased self-confidence.

Customer awareness benefits society by promoting customer satisfaction,

increasing economic stability and creating realistic customer expectations.

Types

There are several different types of customer awareness Media awareness

involves a customer's knowledge of the advertising surrounding a given product or

company. Media awareness also encompasses independent product reviews online or

in print publications. Cost awareness involves comparing the prices of a similar product

among different competitors.

Creating customer awareness:

Decide whom you want to target about your product or public service

announcement. Determine which advertising medium or methods you can use to reach

your target audience. Have those various media companies send you a media kit on

29

their circulation, readership or reach as well as the price of all types of promotions.

Develop a website to include in your advertising.

Design a logo that distinctly identifies your product or public service company.

Create a memorable character like Mr. Clean or Smokey the Bear to,

respectively, promotes your product or public service announcement.

Develop a small booklet that contains vital information about your product or

information that you want distributed. Have it printed at a local print shop. Hire

people to hand these booklets out at retail outlets or high traffic areas, inviting

customer to try the product or read more about a particular issue.

Schedule a seminar at schools, office complexes or manufacturing plants if

you have information that is vital to students or workers. Discuss the particular

topic and explain the steps people can take to resolve any particular issues.

Advertise your product or public service announcement on radio stations that

appeal to your target audience. Run the advertisement frequently in the early

stages of your product introduction or public service message to build customer

awareness among customers.

Promote your product or public service message on television when your target

audience is most likely to view it. Place full-page ads in the newspaper in the

business section or in a section related to your product or public service

message.

Brand equity:

Brand equity is the marketing effects and outcomes that accrue to a product with

its brand name compared with those that would accrue if the same product did not have

the brand name. Fact of the well-known brand name is that, the company can sometimes

charge premium prices from the customer. And, at the root of these marketing effects is

customers' knowledge. In other words, customers' knowledge about a brand makes

manufacturers and advertisers respond differently or adopt appropriately adept measures

for the marketing of the brat d. The study of brand equity is increasingly popular as

some marketing researchers have concluded that brands are one of the most valuable

assets a company has. Brand equity is one of the factors which can increase the

financial value of a brand to the brand owner, although not the only one. Elements that

30

can be included in the valuation of brand equity include (but not limited to): changing

market share, profit margins, customer recognition of logos and other visual elements,

brand language associations made by customers, customers' perceptions of quality and

other relevant brand values.

There have been three different perspectives for considering brand equity; The

customer- based perspectives, the financial perspectives and combined perspectives.

While this study focus on the customer based perspectives.

Customer- Based Brand Equity.

The advantage of conceptualizing brand equity from the Customer- based

perspective is that it enables managers to consider specifically how their marketing

programs improves the value of their brands in the minds of customers. Within the

marketing literature, operationalization of customer based-brand equity usually falls

into two groups.

Customer perception (customer awareness, brand associations, perceived

quality) and customer behavior (brand loyalty, willingness to pay a high price).

Customer- Based Brand Equity is defined as "a set of Brand asses aid

liabilities linked to a brand, its name and symbol that add to or subtract from the

value provided by a product or service to a firm's customers.

Factors influencing Customer awareness:

Customer Awareness refers to the strength of a brand's presence in the

customer's mind.

Awareness is measured according to the different ways in which customers

remember a brand, ranging from recognition to recall to top of the mind.

Some of the major factors affecting customer awareness are

Brand Name: One of the most important factors affecting Customer

awareness is the brand name. Brand name plays an important part in creating

31

awareness for a brand. Also whether the name is really very meaningful or completely

baseless they both affect customer awareness.

Advertising: Advertising also helps to create Customer awareness in a big

way. Take any brand name Fevicol, Vicks, Pepsi all have used ads for creating

awareness among their customers.

Celebrity: Another important factor affecting Customer awareness is the

celebrities endorsing the Brand. Whenever you see a celebrity you love endorsing a

brand you tend to propagate the Brand.

Parent Company: To a large extent the parent company helps in

promoting a brand. The parent company in many cases is so popular that its brand

automatically become popular and people become aware about the product.

Sales Promotions and Offers: It also helps in making the customers

aware of the brand. Some of the sales promotion activities that companies carry out

help their in a big way to make their target aware of the brand.

First Mover Advantage: Usually the company that enters a product

category first has good awareness about its brand. Usually people tend to remember

the first player to enter the market.

Public Relations: The coverage that the fourth estate and magazines

provide a brand also helps in building awareness about a brand.

Direct Selling: Some of the companies use direct selling as a platform to

create customer awareness.

Peer Group Opinion: Peer group opinion also plays an important part in

the whole brandy awareness exercise. Usually people tend to discuss a lo: about the

32

brand and tend to share their experiences or some recent ad's they have seen which in

turn increases customer awareness of their peers.

Recall of Ads: In some cases the customer awareness is also high due to

specific ad recall, which is very high.

It indicates stronger brand position in the mind. Still a; a higher level is the top

of the mind recall; it is the brand, which comes first to the mind. The top of mind

awareness indicates a relative superiority a brand enjoys above others. Sometimes a

brand becomes so dominant that it becomes the only recalled brand in the product

category. Very few brands are able to achieve dominance.

Brand Association:

The association's customers make with brand support brand equity. These

associations may include product attributes, a celebrity spokesperson or a symbol.

Brand associations are driven by brand identity-what the: organization wants the

brand to stand for in the customers mind. A key to brand building then is to develop

and implement brand identity.

One key to successful brand building is to develop a brand identity - to know

what the brand stands for and to effectively express that identity.

Invariably all brands come to acquire a meaning in the mini of the customer.

Customers associate different dimensions of the product including its use and use

situations to the brands. Brand association, therefore, is anything linked to the memory

of a brand.

Brand identity:

Brand identity is a unique set of brand associations that the braid strategist

aspires to create or maintain. These associations represent what the brand stands for

and imply a promise to customers from the organization members.

33

Brand identity should establish a relationship between the brand and the

customer by generating a value proposition involving functional, emotional or self-

expressive benefits.

Factors in Customer Adoption of Internet Banking

In this section, we first describe the theoretical framework and second, provide

findings relating to some important gender differences discovered. The theoretical

framework was developed from the themes identified in the analysis results, as follows.

We first observed that some themes were deemed more important than others by

participants when making their banking service delivery channel choices and selected

these as factors in the model. Second, we noted that several of these factors appeared

interrelated. Third, a temporal sequence for some factors was suggested by the way

participants linked these factors in the data. A summary of the framework follows, with

more important factors as indicated by the analysis noted in the relevant descriptions.

At the top of figure 1, the framework shows that a bank must first attract

banking customer attention to the internet banking service before the customer, will

consider internet banking. However, unless the customer has a high level of internet

accessibility at home or at work, she is unlikely to consider using internet banking. The

customer also assesses whether it is convenient to conduct her banking that way

(convenience), how usable die application appears (usability), and her perceived

competence at internet use and banking application use (self-efficacy). The four

factors of accessibility, self-efficacy, convenience and usability are interrelated. The

customer also considers whether the perceived relative advantages of internet banking

compared with other banking forms outweigh perceived risks and costs. In addition,

the availability of sufficient support and in depth knowledge from the bank and its

employees contribute significantly to the adoption decision.

Rights and Duties of Customers:

As codified under the Indian Laws the Customers have the following Rights:

Right to Safety—to protect against hazardous goods

Right to be Informed—about price, quality, purity

Right to choose—access to a variety of goods and services at competitive prices.

Right to be Heard—customers interest and welfare must be taken care of

Right to seek Redressal—protection against unfair trade practices and settling

34

genuine grievances.

Right to Customer Education.—Knowledge about goods and issues related to

customers.

Duties:

Get a bill for every important purchase and also the Warranty card

Check the ISI mark or Agmark on the goods

Form customer awareness groups

Make a complaint on genuine grievances.

Customers must know to exercise their rights.

35

CHAPTER III

36

Research Methodology

Research Methodology is a way systematically to solve the research problem. It

may be understood as a science of studying how research is done scientifically. It is

necessary for the researcher to know not only the methods or techniques b A also the

methodology.

Research design:

Research design is the plan, structure, and strategy of investigation conceived so as

to obtained answers to research questions. Research design is purely a framework or a

plan for study that guides in the collection of data. Descriptive research design is

adopted for analyzing the data.

Research Method:

The research design is a Descriptive Research. Descriptive statistics was tabular,

graphical & numerical summaries of data. Its main purpose is to facilitate the

presentation and INFERENCEof data. Descriptive Research design involves description

of the variables making up the demographic and geographic profile of the sample

Source of data:

Primary Data:

Primary data has collected directly from customers through structured

questionnaires (Individual sample units)

Secondary Data:

Secondary data has collected from the various magazines, journals, website of

DENA BANK and various websites.

37

Sampling Method:

The population includes male and female customers residing in the area of

T.Nagar with the criteria: Customers with Dena bank. In this project convenience

sampling method is followed.

Definition: Convenience.

In convenience sampling, a sample is obtained by selecting convenient

population elements from the population.

Sample Size:

Our Sample size was 150, who fulfill the basis criteria- Customers with Dena

bank.

Sampling unit:

A sample unit is a single individual, who is having Dena bank accounts.

Data collection method:

Self-administered Personal survey method was used to collect the necessary

data. For this purpose appropriate questionnaires were designed.

Data collection instrument:

Appropriately designed questionnaire to facilitate self-administered surveys with

simple standard questions were used to collect data.

Structure of Questionnaire:

The questions formulated were structured and non-disguised. The questions were

asked in order to get all the necessary information and to see that the respondents could

answer them with case. This pattern adopted facilitated in analyzing the data.

Types of questions asked:

1. Multiple choice questions

38

Many choices of responses are given and the respondent chooses one response.

The advantage of this type is easy tabulation and quick response by the respondent.

2. Dichotomous questions

This type of questions is of 'Yes' or 'No' format. There are only two choices of

answers and the respondent has to choose either 'Yes' or 'No'.

3. Open questions

These are also known as 'free-answer' type questions.

39

The statistical tool used for analysis of the data is Chi-square test.

Based on the answer received on the question in the questionnaire, the

following analysis and findings have been derived.

Chi-square test:

Chi-square is a non-parametric test which can be used to determine categorical

data shows dependency or that two classification are independent. It can also make

comparisons between the theoretical population and actual data, when categories are

used. It is mostly used most frequently by marketing researches to test hypothesis.

This test is employed for testing hypothesis when distributed population is not

known and when nominal data is to be analyzed. Chi-square aims at determining

whether the difference exists among graphs of data or whether the differences are due

to sampling. Chi-square analysis is used to find out dependency between two different

attributes.

χ2 =∑ (Oi-Ei)2 / Ei

Where,

Oi = Observed frequency

Ei = Expected frequency

The Ei can be calculated as,

Ei = (Row total * Column total)/ Grand total

The calculated value of χ2 is compared with table value of χ2 for given degrees

of freedom at specified level of significance. It is accepted when the calculated value

is lesser than tabulated value and rejected when the calculated value is greater than the

table value.

40

CHAPTER IV

41

DATA ANALYSIS AND INTERPRETATION

TABLE No 4.1

DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR GENDER

Customer ModeGender No. of respondents Percentage

Male 80 54Female 70 46Total 150 100

Source: Primary Data

CHART NO 4.1

Sales

MaleFemale

INFERENCE:

From the above table, 54 per cent of the respondents are Male, 46 Per cent of

the respondents female.

42

TABLE No 4.2

DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR AGE

Age group of customerAge class No.of.Respondents PercentageBelow 20 20 13

20-30 35 2430-40 30 2040-50 38 25

Above 50 27 18Total 150 100

Source : Primary Data

CHART No 4.2

Below 20 20-30 30-40 40-50 Above 500

10

20

30

40

50

60

70

No.of. Respondents

INFERENCE:

From the above table, 25 Per cent of the respondents are of 40-50 years old, 24

Per cent of the respondents are of 20-30 years old, 20 Per cent of the respondents are

43

of 30-40 years old, 18 Per cent of the respondents are above 50 years old and the

remaining 1325 Per cent of the respondents are below the age of 20.

TABLE No 4.3

DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR

OCCUPATION

Mode of Occupation Occupation No. of. Respondents Percentage

Business 27 23Govt. Employees 25 17

Retired 35 15Private Sectors 40 27

Others 23 18Total 150 100


CHART No 4.3

No. of. respondents

BusinessGovt. EmployeesRetiredPrivate SectorsOthers

INFERENCE:

The above table shows that, 27 Percent of the respondents are Private sector,

23 Percent of the respondents are business person, 18 Percent of the respondents are

44

others, 17 Percent of the respondents are Govt. employees and the remaining is

retired.

TABLE No 4.4

DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR INCOME

LEVEL

Category of Income LevelIncome Level No. of. Respondents PercentageBelow 1 Lakh 44 29

1 Lakh - 3 Lakh 48 32Above 3 Lakh 58 39

Total 150 100Source : Primary Data

CHART No 4.4

No. of . respondents

Below 1 Lakh1 Lakh - 3 LakhAbove 3 Lakh

INFERENCE

From the above table, 39 percent of the respondent's annual income are above

Rs.3 Lakh, 32 percent of the respondent's annual incomes are between Rs.1 Lakh -3

Lakh. Remaining 29 percent of the respondents below Rs.1 Lakh.

45

TABLE No 4.5

DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR ACCOUNT

HELD WITH THE BANK:

Having account in Dena Bank Status No. of. Respondents Percentage

Below 1 Year 25 16.671-3 Years 33 223-5 Year 41 27.33

Above 5 Years 51 34Total 150 100


CHART No. 4.5

Belwo 1 Year 1-3 Years 3-5 Years Above 5 years0

10

20

30

40

50

60

70

80

Percentage No. of. Respondents

INFERENCE

46

From the above table, 39 percent of the respondents are having above 5 years

with the bank, 27.33 percent of the respondents are between 3-5 years, and 22 percent

of the respondents are 1-3 years. Remaining 16.67 percent of the respondents are

having account below 1 year with the bank.

TABLE No 4.6

DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR AWARENESS

ABOUT DENA BANK :

Awareness about Dena Bank Status No. of. Respondents Percentage

Yes 150 100No 0 0


CHART No 4.6

Yes No0

50

100

150

200

250

No. of . respondents

Column1

INFERENCE:

From the above table, 100 percent of the respondents are aware of Dena Bank.

47

TABLE No 4.7

DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR

CONVENIENT MODE OF BANKING:

Classifications based on customer's convenient mode of banking : Status No. of. Respondents PercentageBranch 25 16.67

Internet banking 30 20Phone banking 15 10Mobile banking 25 16.67ATM Services 55 36.66


CHART No.4.7

Branch banking

Internet banking

Phone banking

Mobile bankin

ATM Services

0

10

20

30

40

50

60

70

80

90

100

Percentage No. of . Respondents

48

INFERENCE:

From the above table, 36.66 Percent of respondents are aware about ATM

service, 20 Percent of respondents are aware about Internet banking services, 16.67

Percent of respondents are aware about branch banking and mobile banking service,

remaining 10 Percent of respondents are aware about phone banking service.

TABLE No 4.8

DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR AWARENESS

ABOUT THE INTERNET BANKING SERVICES:

Awareness about internet banking services Status No. of. Respondents Percentage

Yes 125 83.33No 25 16.67


CHART No 4.8

Yes No0

50

100

150

200

250

No. of. respondents

PercentageNo. of. Respondents

INFERENCE:

49

From the above table, 83.33 percent of the respondents are aware of the

internet banking service offered by the bank the remaining 16.67 percent of

respondents are unaware of it.

TABLE No 4.9

DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR USAGE OF

INTERNET BANKING SERVICES:

Awareness about internet banking services Status No. of. Respondents Percentage

Yes 68 45No 82 55


CHART No 4.9

No. of. Respondents

YesNo

INFERENCE

50

From the above table, 45 percent of the respondents are using internet banking

service offered by the bank and the remaining 55 percent of respondents are not using

it.

TABLE No 4.10

DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR PERIOD OF

USAGE OF INTERNET BANKING SERVICES:

Period of usage of internet banking services Status No. of. Respondents Percentage

Never used 82 55Less than 1 year 23 15.33

1-2 years 15 10Above 2 years 30 20


CHART No 4.10

Never used

Less than 1 year

1-2 years Above 2 years

0

20

40

60

80

100

120

140

No. of. Respondents

PercentageNo. of Respondetns

51

INFERENCE

From the above table, 55 percent of the respondents never used this service, 20

percent of the respondents have used this service above 2 years, and 15.33 percent of

the respondents have used this service below 1 year. Remaining 10 percent of the

respondents are using this service between 1-2 years.

TABLE No 4.11

DISTRIBUTION OF RESPONDENTS ACCORDING TO THE TRANSACTIONS

THEY MADE THROUGH INTERNET BANKING SERVICES:

Period of usage of internet banking servicesStatus No. of. Respondents Percentage

Balance Enquiry 12 17.65Mini Statement 11 16.18

Statements of Account 12 17.65Cheque based enquiry 9 13.24

Funds Transfer 12 17.65Tax Payments 12 17.65

Total 68 100Source: Primary Data

CHART No 4.11

No. of respondents

Balance EnquiryMini StatementStatements of AccountCheque based enquiryFunds TransferTax Payments

52

INFERENCE

From the above table, 17.65 percent of the respondents tried Balance Enquiry,

Account Statement, Funds Transfer and Tax Payments facility offered by the bank.

16.18 percent of the respondents have checked their Mini Statement and the remaining

13.24 percent of the respondents have made Cheque based enquiry using internet

banking service.

TABLE No 4.12

DISTRIBUTION OF RESPONDENTS REASON FOR NOT USING INTERNET

BANKING SERVICES:

Reason for not using internetbanking servicesStatus No. of. Respondents Percentage

Confusing 9 11Lack of information 13 15.85

Fear of security 50 61Others 10 12.2Total 82 100


CHART No 4.12

No. of. Respondents

ConfusingLack of informationFear of securityOthers

53

INFERENCE:

From the above table, 61 percent of the respondents did not use this service due

to the fear of security, 15.85 percent of the respondents did not use this service due to

the lack of information about this service, 12.2 percent of the respondents did not use

this service due to some other reasons and for the remaining 11 percent of the

respondents did not use this service due to confusion in the internet banking service.

TABLE No 4.13

DISTRIBUTION OF RESPONDENTSACCORDING TO THEIR PURPOSE OF

USINGINTERNET BANKING SERVICES:

Purpose for using internet banking servicesStatus No. of. Respondents Percentage

Business activity 25 36.8Electronic Payments 20 29.4Demat Services 13 19.1Others 10 14.71

Total 68 100


CHART No 4.13

No. of. Respondents

Business acitivityElectronic Payments20Demat ServicesOthers

54

INFERENCE

From the above table, 36.8 percent of the respondents used this for business

activity, 29.4 percent of the respondents used this for making electronic payments, 19.1

percent of the respondents used this for Demat Services and 14.71 percent of the

respondents used this for other purposes.

55

TABLE No 4.14

DISTRIBUTION OF RESPONDENTSACCORDING TO THEIR

SATISFACTION LEVEL IN THE INTERNET BANKING SERVICE

Satisfaction in the internet banking services Status No. of. Respondents Percentage

Highly satisfied 25 37Satisfied 23 33.8Neutral 15 22.1Dis- Satisfied 5 7.4Highly dis - satisfied 0 0


CHART No 4.14

Highly

statisfi

ed

Satisfi

ed

Nautra

l

Dis-sati

sfied

Highly

dis-sati

sfied

010203040506070

No. of. Respondents

Percentages

INFERENCE:

From the above table, 37 percent of the respondents are highly- satisfied with this

service, 33.8 percent of the respondents are satisfied with this service, 22.1 percent of the

respondents are neutrally satisfied with this service, and 7.4 percent of the respondents

are highly-satisfied with this service. None of the respondents are highly dis-satisfied

with this service.

56

TABLE No 4.15

DISTRIBUTION OF RESPONDENTSACCORDING TO THEIR

SATISFACTION TOWARDS INTERNET BANKING SERVICES:

Satisfaction in the internet banking services Status No. of. Respondents Percentage

Cheap and best 15 22.05Saves time consumption 18 26.5Fast transactions 25 36.8No need to visit bank often 10 14.1


CHART No 4.15

No. of. Respondents

Cheap and best Saves time consumptionFast transactionsNo need to visit bank often

INFERENCE:

From the above table, 36.8 percent of the respondents are satisfied because of

faster transactions, 26.5 percent of the respondents are satisfied because is Saves time

consumption 22.05 percent of the respondents are satisfied because it is Cheap and best,

14.1 percent of the respondents are satisfied because no need to visit bank often.

57

TABLE No 4.16

DISTRIBUTION OF RESPONDENTS REASON FOR THEIR

DISSATISFACTION TOWARDS INTERNET BANKING SERVICES:

Reason for dis-satisfaction towards internet banking serviceStatus No. of. Respondents Percentage

Security reasons 85 56.67Unable to do cash transactions 45 30

Others 20 13.33Total 150 100


CHART No 4.16

Security reasons Unable to do cash transactions

Others0

20

40

60

80

100

120

140

160

No. of. Respondents

No. of. RespondentsColumn1

INFERENCE:

From the above table, 56.67 percent of the respondents are dis-satisfied for

security reasons, 30percent of the respondents are dis-satisfied as it's unable to do cash

transactions, and 20 percent of the respondents are dis-satisfied for other reasons.

58

TABLE No 4.17

DISTRIBUTION OF RESPONDENTS WITH REFERENCE TO THE

FACILITIES OFFERED BY THE BANK FOR INTERNET BANKING:

Facilities offered for internet bankingStatus No. of. Respondents Percentage

Excellent 20 29.4Very Good 18 26.5

Good 15 22.06Average 10 14.71

Poor 5 7.4Total 68 100


CHART No 4.17

Excellent Very Good Good Average Poor0

10

20

30

40

50

60

No. of. Respondents

No. of. Respondents 2

INFERENCE:

From the above table, 29.4 percent of the respondents have rated excellent,

26.5percent of the respondents have rated Very good, 22.06 percent of the respondents

have rated Good, 14.71 percent-of the respondents have rated Average and the

remaining 7.4 percent of the respondents have rated poor for the facilities offered by the

bank for internet banking services.

59

TABLE No 4.18

DISTRIBUTION OF RESPONDENTS AC CORDING TODURATION OF THEIR

USAGE IN INTERNET BANKING SERVICE:

Classification based on the duration of their usage in the internet banking servicesStatus No. of. Respondents Percentage

Very Frequently 23 33.8Frequently 17 25

Occasionally 15 22.1. Rarely 13 19.1

Very Rarely Nil 0Total 68 100


No. of. Respondents

Very FrequentlyFrequentlyOccasionallyRarelyVery Rarely

INFERENCE:

From the above table, 33.8 percent of the respondents use this service very

frequently, 25 percent of the respondents use this service frequently,22.1 percent of the

respondents use this service occasionally, 19.1 percent of the respondents use this

service rarely and none of the respondents use this service very rarely.

60

TABLE No 4.19

DISTRIBUTION OF RESPONDENTS AC CORDING TOFREQUENT USAGE IN

INTERNET BANKING SERVICE:

Classification based on customer usage frequently to internet banking servicesStatus No. of. Respondents Percentage

Regularly 29 42.6Once in a while 12 17.6

When I am out-station 13 19.1Indifferent 14 20.6


Regularly Once in a while When I am out-station Indifferent0

10

20

30

40

50

60

70

80

Series 2

INFERENCE:

From the above table, 42.6 percent of the respondents use this service regularly,

20.6 percent of the respondents use this service indifferent, 19.1 percent of the

respondents use this service when they are out station and 17.6 percent of the

respondents use this service once in a while.

61

TABLE No 4.20

DISTRIBUTION OF RESPONDENTS AC CORDING TO THEIR OPINION IN

INTERNET BANKING SERVICE:

Classification of customer opinion about the internet banking servicesStatus No. of. Respondents Percentage

Excellent 85 56.7Good 30 20

Average 18 12Poor 17 11.3Total 150 100


CHART No 4.20

ExcellentGoodAveragePoor

INFERENCE:

From the above table, 56.7 percent of the respondent' sopinion is Excellent,

20percent of the respondent's opinion is good, 12 percent of respondent's opinionis

Average and the remaining 11.3 percent of the respondent's opinion is Poor about the

internet banking services provided by Dena bank.

62

STATISTICAL TOOLS

4.2.1 Chi-Square Analysis

Aim:

To test the relationship between customers usage of internet banking service

towards their occupation

Occupation

USAGEBusiness

Govt.

EmployeeRetired

Private

SectorOthers Total

Yes 27 8 5 32 5 77

No 0 17 30 8 18 73

Total 27 25 35 40 23 150

Null Hypothesis (Ho) :

There is no significant difference between the Occupation and the internet

banking usage.

Alternative Hypothesis (Hi) :

There is significant difference between the Occupation and the internet banking

usage.

Level of significance: 5%

Degree Of Freedom:

= (c-1) (r-1)

= (5-1) (2-1)

= 4.

63

Working Notes:

Oi Ei (Oi - Ei) (Oi - Ei)2 (Oi - Ei)2

Ei

27 13.9 13.1 171.6 12.3

0 13.1 -13.1 171.6 13.1

8 12.8 -4.8 23.04 1.8

17 12.2 4.8 23.04 1.9

5 18 -13 169 9.4

30 17 13 169 9.9

32 20.5 11.5 132.3 6.5

8 19.5 -11.5 132.3 6.8

5 11.8 -6.8 46.24 3.9

18 11.2 6.8 46.24 4.1

Total 69.7

Table value:

The table value of chi square for degrees of freedom at 5% level is 9.49

Inference:

The calculated value > tabulated value. Therefore Null hypothesis is rejected.

Result:

There is significant difference between the Occupation and the internet

banking usage.

64

4.2.2. Chi-Square Analysis

Aim:

To test the relationship between the facilities provided offered for internet

banking service towards customer gender.

Facilities

GenderExcellent

Very

GoodGood Average Poor Total

Male 11 8 7 4 0 30

Female 9 10 8 6 6 38

Total 20 18 15 10 5 60

Null Hypothesis (Ho) :

There is no significant difference between the facilities provided offered for

internet banking service and the customer gender.

Alternative Hypothesis (H1) :

There is significant difference between the facilities provided offered for


Level of significance: 5%

Degree Of Freedom:

= (c-1) (r-1)

= (5-1) (2-1)

= 4

65

Working Notes:

Oi Ei (Oi - Ei) (Oi - Ei)2 (Oi - Ei)2

Ei

11 8.8 2.2 4.8 0.69 11.2 -2.2 4.8 0.68 7.9 0.1 0.01 0.00110 10.1 -0.1 0.01 0.0017 6.6 0.4 0.16 0.028 8.4 -0.4 0.16 0.024 4.4 -0.4 0.16 0.026 5.6 0.4 0.16 0.020 2.2 -2.2 4.8 0.65 2.8 2.2 4.8 0.6

Total 2.482

Table value:

The table value of chi square for degrees of freedom at 5% level is 9.49

Inference:

The calculated value < tabulated value. Therefore Null hypothesis is accepted.

Result:

There is no significant difference between the facilities provided offered for


66

CHAPTER V

67

SUMMARY AND CONCLUSION

Findings

54 percent of the respondents are Male.

25 percent of respondents are of the age group 40-50.

27 percent of respondents are private sector.

^ 39 percent of respondents are above Rs. 3 Lakh.

34 percent of respondents are having account above 5 years in the bank.

All the respondents are aware of Dena bank.

36.66 percent of respondents are aware of only ATM Service.

Only 83.33 percent of respondents are aware of the internet banking service

offered by the bank.

Only 45 percent of respondents are using the internet banking service offered

by the bank.

55 percent of respondents have never used this service provided by the bank.

17.65 percent of respondents have made use of all the facilities offered for

internet banking service by the bank.

61 percent of respondent's didn't use the internet banking service because of

fear of security.

36.8 percent of respondents used internet banking service for business activity.

37 percent of respondents are highly satisfied with this service.

36.8 percent of respondents are satisfied due to faster transactions.

56.67 percent of respondents are dissatisfied due to security reasons.

29.4 percent of respondents have graded excellent for the facilities offered for

internet banking

33.8 percent of respondents use this service very frequently.

42.6 percent of respondents use this service regularly.

56.7 percent of respondent's opinion is excellent about the internet banking

services provided by Dena bank.

68

Suggestions:

Customers are not satisfied with the RTGS / NEFT facility.

Though the Internet Banking is an effective tool but many of the customers are

not using it due to the awareness of the particular direct banking channel. Now

the responsibility lies with the bank to make them aware about various Internet

banking channels through publicity and advertisement.

Bank should educate the customer about the usage of internet banking channel

and also about their advantages. This would prompt the customers to shift from

traditional brick and mortar channel.

It has been observed that even the customers who know about internet banking

channel are not using this facility due to misconception and lack of

information. These customers should be targeted by the bank and must be

convinced to use the same.

The result of the study shows that customers are using only few facility of

various internet banking channel. Though e- banking provides a full gamut of

various services. Customer should be made aware of these services and must

be encouraged to use the same.

The bank may improve existing facilities in rural areas through advertising,

spread awareness about computer and net banking.

The best way to motivate the customer to use the e- banking is the most

efficient customer care service.

69

LIMITATION OF THE STUDY:

The study was done in T.Nagar bank and sample size of 150 the credibility of

the project is not assured.

Personal bias and prejudices of the respondents could have affected the result

of the study.

Convenient sampling has been used and hence the samples selected are not true

representation of the universe.

Only certain statistical test could be applied to validate the results of the study.

70

CONCLUSION:

The success of the company directly or indirectly depends on their customers, as

they are the backbone of the company. With the development of technology the

customers expectations are raising relentlessly, competitive will survive who

can respond to the customer needs faster and better than anyone.

The project commence with fixing the objective then sample were collected

accordingly around 150 samples have been collected from the population in a

structure method and analysis have been done to get the results.

The objectives framed at the beginning of the project have been achieved.

The customers are aware of Dena bank and various types of the services

provided by the bank.

The result of this study shows that perceived usefulness, perceived ease of use,

customer awareness and perceived risk are the important determinants of

internet banking adoption.

Study concludes that majority of customers are accepting internet banking

because of many favorable factors. Analysis concluded that usefulness, ease of

use of the system awareness about internet banking and risks related to it are

the main perusing factors to accept internet banking system.

These factors have a strong and positive effect on customers to accept internet

banking system.

This "customer awareness survey" is conducted to rival the awareness level of

the customers towards internet banking service in different parameters as per

the respondents having positive attitude towards Dena bank.

71

ANNEXURE

72

THE STUDY OF CUSTOMER AWARENESS TOWARDS INTERNET

BANKING SERVICES PROVIDED BY DENA BANK WITH SPECIAL

REFERENCE TO T.NAGAR BRANCH:

QUESTIONNAIRE

Name of Respondent:Age:

a) Below 20 b) 20-30 c) 30-40 d) 40-50 e) Above 50Gender:

a) Male b) Female

Occupation:

a) Business b) Government Employed

c) Retired d) Private sector

e) Others (Please specify)

1. Which income group do you belong to (annual)?

A) Less than Rs. 1 Lakh

B) Rs. 1 Lakh to 3 Lakh

C) More than Rs. 3 Lakh

2. How long you have account in Dena bank?a) Below 1 year b) 1-3 years

c) 3-5 years d) Above 5 years

3. What type of account you have in Dena bank?a) Savings b) Current c) Cash creditd) Term deposits e) Others

4. According to you which is more convenient way for banking?

a) Branch banking b) Internet banking

c) Phone banking d) Mobile banking

e) ATM

5. "Banking through the internet is safe and secure". Present your view:

a) Strongly Agree b) Agree c) Can't say

d) Dis-Agree e) Strongly dis-agree

73

6. Are you aware of internet banking services?

a) Yes b) No

7. Have you used this facility?

a) Yesb) No

8. If "Yes", which transaction you have made?

a) Balance Enquiry b) Mini statement

c) Statement of accounts d) Cheque based enquiry

e) Funds transfer f) Tax payments

9. If "No", then what is the reason for not using internet banking facility?a) Confusing b) Lack of information

c) Fear of security d) others

10.How long you are using this internet banking facility?a) Not used b) Less than 1 year

c) 1-2 years d) above 2 years

11.For what purpose you are using internet banking facility?a) Business activity b) Electronic Payments

c) Demat services d) others

12.How well you are satisfied with the internet banking channel?a) Highly satisfied b) Satisfied

c) Neutral d) Dis-satisfied

e) Highly dis-satisfied

13. Mention your reason for satisfaction towards the internet banking service?a) Cheap & best b) Saves time consumption

c) Fast transactions d) No need to visit bank often

14. Mention your reason for dis-satisfaction in the internet banking service?a) Security reasons b) unable to do cash transactions

c) Others (Please specify)_____________

15. What do you think of the facilities offered by the bank for internet banking?

a) Excellent b) Very Good c) Good

d) Average e) Poor

74

16. How many times you have used this facility till now?

a) Very Frequently b) Frequently

c) Occasionally d) Rarely

e) Very Rarely

17. How frequently you use internet banking facility?

a) Regularly b) Once in a while

c) When I am out-station d) Indifferent

18. What is your overall opinion about internet banking?a) Excellent b) Good

c) Average e) Poor

19. Based on your satisfaction level will you recommend this service to yourfriends/relatives?

a) Yes b) No

20. Give your suggestion for internet banking:

________________________________________________________________________________________________________

75

BIBLIOGRAPHY

Philip Kotler Kevin kellerLane prentice - Hall of India P Ltd Edition 2007

C.R Kothari Research Methodology New Age International Publication

Limited Second revised Edition 2006

P.N Arora & S.Arora Static for Management Sultan Chand Publication 3rd

Revised Edition 2006

Websites:

www.denabank.com

www.google.com

76

Date post:	06-May-2015
Category:	Business
Upload:	prarthana-srinivasan
View:	4,635 times
Download:	2 times