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 TITLE PAGE No.
No.

INTRODUCTION 1

OBJECTIVES OF THE STUDY 3

NEED FOR THE STUDY 4
I
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
4.18 services
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

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

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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.

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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.

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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 t h e 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

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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

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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

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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.GMCM 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.

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A.C.Katial
(DGM)

S.J.Majumdar
(AGM)

Devi Singh Channokar
(Chief Manager)

G.D. Sinha
(Senior Manager)

Hakeem Alam
(Manager)

Deepika Kansal
(Officer)

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

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 Last Market Cap Net Interest Net Profit Total Assts
Bank Price (Rs. Cr) Income
SBI 2,266.45 143,892.43 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 Employees : 9,883
(year Ending Jan 2010)
Currency: Indian Rupees Market Cap : 25,340,829,720
Fiscal Yr Ends: March Share Outstanding: 286,823,200
Share Type : Ordinary Closely Held 146,820,000
Shares :

21

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

23

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".

Brand recognition - Either the brand name or both the brand name and category
name are presented to respondents.

24

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.

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

26

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
activists, non-governmental organizations, educational institutions and media
cannot be ignored.

27

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
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.

28

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 their circulation, readership or reach as well as the price of all types of promotions.
Develop a website to include in your advertising.

29

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
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,

30

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
awareness for a brand. Also whether the name is really very meaningful or completely
baseless they both affect customer awareness.

31

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
brand and tend to share their experiences or some recent ad's they have seen which in
turn increases customer awareness of their peers.

32

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.

Brand identity should establish a relationship between the brand and the
customer by generating a value proposition involving functional, emotional or self-
expressive benefits.

33

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
genuine grievances.
 Right to Customer Education.—Knowledge about goods and issues related to
customers.
34

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

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.

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.

37

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
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.

38

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.

2
=∑ (Oi-Ei)2 / Ei

Where,
 Oi = Observed frequency
 Ei = Expected frequency

The Ei can be calculated as,
Ei = (Row total * Column total)/ Grand total
2 2
The calculated value of is compared with table value of 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

DATA ANALYSIS AND INTERPRETATION

TABLE No 4.1
DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR GENDER

Customer Mode
Gender No. of respondents Percentage
Male 80 54
Female 70 46
Total 150 100
Source: Primary Data

CHART NO 4.1

Sales

Male
Female

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 customer
Age class No.of.Respondents Percentage
Below 20 20 13
20-30 35 24
30-40 30 20
40-50 38 25
Above 50 27 18
Total 150 100
Source : Primary Data
CHART No 4.2

No.of. Respondents
70

60

50

40

30

20

10

0
Below 20 20-30 30-40 40-50 Above 50

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
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.

43

TABLE No 4.3
DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR
OCCUPATION
Mode of Occupation
Occupation No. of. Respondents Percentage
Business 27 23
Govt. Employees 25 17
Retired 35 15
Private Sectors 40 27
Others 23 18
Total 150 100
CHART No 4.3

No. of. respondents

Business
Govt. Employees
Retired
Private Sectors
Others

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

44

TABLE No 4.4
DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR INCOME
LEVEL
Category of Income Level
Income Level No. of. Respondents Percentage
Below 1 Lakh 44 29
1 Lakh - 3 Lakh 48 32
Above 3 Lakh 58 39
Total 150 100
CHART No 4.4

No. of . respondents

Below 1 Lakh
1 Lakh - 3 Lakh
Above 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 16.67
1-3 Years 33 22
3-5 Year 41 27.33
Above 5 Years 51 34
Total 150 100

CHART No. 4.5
80

70

60

50

40 Percentage
30 No. of. Respondents

20

10

0
Belwo 1 Year 1-3 Years 3-5 Years Above 5 years

INFERENCE
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.

46

TABLE No 4.6
DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR AWARENESS
ABOUT DENA BANK :
Awareness about Dena Bank
Yes 150 100
No 0 0
Total 150 100

CHART No 4.6

No. of . respondents

250

200

150
No. of. Respondents
100

50

0
Yes No

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 :
Branch 25 16.67
Internet banking 30 20
Phone banking 15 10
Mobile banking 25 16.67
ATM Services 55 36.66
Total 150 100

CHART No.4.7
100
90
80
70
60
50
Percentage
40
No. of . Respondents
30
20
10
0
Branch Internet Phone Mobile ATM
banking banking banking bankin Services

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.

48

TABLE No 4.8
DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR AWARENESS
ABOUT THE INTERNET BANKING SERVICES:
Awareness about internet banking services
Yes 125 83.33
No 25 16.67
Total 150 100

CHART No 4.8

No. of. respondents
250

200

150
Percentage
100
No. of. Respondents
50

0
Yes No

INFERENCE:
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.

49

TABLE No 4.9
DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR USAGE OF
INTERNET BANKING SERVICES:
Awareness about internet banking services
Yes 68 45
No 82 55
Total 150 100

CHART No 4.9

No. of. Respondents

Yes
No

INFERENCE
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.

50

TABLE No 4.10
DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR PERIOD OF
USAGE OF INTERNET BANKING SERVICES:
Period of usage of internet banking services
Never used 82 55
Less than 1 year 23 15.33
1-2 years 15 10
Above 2 years 30 20
Total 150 100

CHART No 4.10

No. of. Respondents
140
120
100
80
Percentage
60
No. of Respondetns
40
20
0
Never Less than 1-2 years Above 2
used 1 year years

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.

51

TABLE No 4.11
DISTRIBUTION OF RESPONDENTS ACCORDING TO THE TRANSACTIONS
THEY MADE THROUGH INTERNET BANKING SERVICES:
Period of usage of internet banking services
Balance Enquiry 12 17.65
Mini Statement 11 16.18
Statements of Account 12 17.65
Cheque based enquiry 9 13.24
Funds Transfer 12 17.65
Tax Payments 12 17.65
Total 68 100

CHART No 4.11

No. of respondents

Balance Enquiry
Mini Statement
Statements of Account
Cheque based enquiry
Funds Transfer
Tax Payments

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.

52

TABLE No 4.12
DISTRIBUTION OF RESPONDENTS REASON FOR NOT USING INTERNET
BANKING SERVICES:
Reason for not using internet
banking services
Confusing 9 11
Lack of information 13 15.85
Fear of security 50 61
Others 10 12.2
Total 82 100

CHART No 4.12

No. of. Respondents

Confusing
Lack of information
Fear of security
Others

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.

53

TABLE No 4.13
DISTRIBUTION OF RESPONDENTSACCORDING TO THEIR PURPOSE OF
USINGINTERNET BANKING SERVICES:
Purpose for using internet banking services
Business activity 25 36.8
Electronic Payments 20 29.4
Demat Services 13 19.1
Others 10 14.71
Total 68 100

CHART No 4.13

No. of. Respondents

Business acitivity
Electronic Payments20
Demat Services
Others

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.

54

TABLE No 4.14
DISTRIBUTION OF RESPONDENTSACCORDING TO THEIR
SATISFACTION LEVEL IN THE INTERNET BANKING SERVICE
Satisfaction in the internet banking services
Highly satisfied 25 37
Satisfied 23 33.8
Neutral 15 22.1
Dis- Satisfied 5 7.4
Highly dis - satisfied 0 0
Total 68 100

CHART No 4.14

No. of. Respondents
70
60
50
40
30
20
10 No. of. Respondents
0

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.

55

TABLE No 4.15
DISTRIBUTION OF RESPONDENTSACCORDING TO THEIR
SATISFACTION TOWARDS INTERNET BANKING SERVICES:

Satisfaction in the internet banking services
Cheap and best 15 22.05
Saves time consumption 18 26.5
Fast transactions 25 36.8
No need to visit bank often 10 14.1
Total 68 100

CHART No 4.15

No. of. Respondents

Cheap and best
Saves time consumption
Fast transactions
No 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.

56

TABLE No 4.16
DISTRIBUTION OF RESPONDENTS REASON FOR THEIR
DISSATISFACTION TOWARDS INTERNET BANKING SERVICES:
Reason for dis-satisfaction towards internet banking service
Security reasons 85 56.67
Unable to do cash transactions 45 30
Others 20 13.33
Total 150 100

CHART No 4.16

No. of. Respondents
160

140

120

100

80
No. of. Respondents
60

40

20

0
Security reasons Unable to do cash Others
transactions

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.

57

TABLE No 4.17
DISTRIBUTION OF RESPONDENTS WITH REFERENCE TO THE
FACILITIES OFFERED BY THE BANK FOR INTERNET BANKING:
Facilities offered for internet banking
Excellent 20 29.4
Very Good 18 26.5
Good 15 22.06
Average 10 14.71
Poor 5 7.4
Total 68 100

CHART No 4.17

No. of. Respondents
60

50

40

30
No. of. Respondents
20

10

0
Excellent Very Good Good Average Poor

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.

58

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 services
Very Frequently 23 33.8
Frequently 17 25
Occasionally 15 22.1
. Rarely 13 19.1
Very Rarely Nil 0
Total 68 100

No. of. Respondents

Very Frequently
Frequently
Occasionally
Rarely
Very 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.

59

TABLE No 4.19
DISTRIBUTION OF RESPONDENTS AC CORDING TOFREQUENT USAGE IN
INTERNET BANKING SERVICE:
Classification based on customer usage frequently to internet banking services
Regularly 29 42.6
Once in a while 12 17.6
When I am out-station 13 19.1
Indifferent 14 20.6
Total 68 100

80

70

60

50

40
Series 1
30

20

10

0
Regularly Once in a while When I am out- Indifferent
station

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.

60

TABLE No 4.20
DISTRIBUTION OF RESPONDENTS AC CORDING TO THEIR OPINION IN
INTERNET BANKING SERVICE:
Classification of customer opinion about the internet banking services
Excellent 85 56.7
Good 30 20
Average 18 12
Poor 17 11.3
Total 150 100

CHART No 4.20

Excellent
Good
Average
Poor

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.

61

STATISTICAL TOOLS

4.2.1 Chi-Square Analysis
Aim:
To test the relationship between customers usage of internet banking service
towards their occupation

Occupation Govt. Private
Business Retired Others Total
USAGE Employee Sector

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.

62

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.

63

4.2.2. Chi-Square Analysis

Aim:
To test the relationship between the facilities provided offered for internet
banking service towards customer gender.

Facilities Very
Excellent Good Average Poor Total
Gender Good

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

64

Working Notes:

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

Ei
11 8.8 2.2 4.8 0.6
9 11.2 -2.2 4.8 0.6
8 7.9 0.1 0.01 0.001
10 10.1 -0.1 0.01 0.001
7 6.6 0.4 0.16 0.02
8 8.4 -0.4 0.16 0.02
4 4.4 -0.4 0.16 0.02
6 5.6 0.4 0.16 0.02
0 2.2 -2.2 4.8 0.6
5 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

65

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.

67

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.

68

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.

69

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.

70

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 50
Gender:
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 credit
d) 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

72

6. Are you aware of internet banking services?
a) Yes b) No
7. Have you used this facility?
a) Yes
b) 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

73

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 your
friends/relatives?
a) Yes b) No
20. Give your suggestion for internet banking:
__________________________________
__________________________________
____________________________________

74

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

75

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