A STUDY ON

“ROLE OF INFORMATION TECHNOLOGY IN BANKING SECTOR IN

KOTAK MAHINDRA LTD ”

A research project submitted in partial fulfillment of the requirement for the award

of the degree of Masters of Business Administration (MBA) under the department

of Management studies at Guru Nanak Institution‟s

Submitted by:

By

SATHIRI NIREESHA

HALL TICKET NO: 22WJ1E00A1

Under The Supervision Of

Ravi Shankar

(Assistant Professor)

Department of masters of business administration

GNITC, Hyderabad : Telangana

1
 DECLARATION

I hereby, declare that the work presented in this project titled “ROLE OF INFORMATION

TECHNOLOGY IN BANKING SECTOR ON KOTAK MAHINDRA LTD" is carried out by me

under the supervision of Ravi Shankar Asst. Professor of the department of management studies. I have

acknowledged references from all sources including the internet sources wherever applicable.

Name: SATHIRI NIREESHA Date:

Roll no: 22WJ1E00A1

Place: Ibrahimpatnam, R.R District, Telangana.

2
 CERTIFICATE

This is to certify that the project entitled “ROLE OF INFORMATION TECHNOLOGY IN

BANKING SECTOR IN KOTAK MAHINDRA LTD” submitted by SATHIRI NIREESHA

in partial fulfillment of the requirement for the award of the degree Masters of Business Administration

candidate‟s own work carried out by her under my supervision. This project or any part thereof has not

been submitted to any other institution for any degree or diploma.

Supervisor: Date:

Signature:

Head of Department:

Signature:

3
 ACKNOWLEDGEMENT

The result is always the sum of all parts. Likewise, this report put forth was possible with the help of

many people involved in the completion of this INTERNSHIP project.

It is a great for me to record her deep sense to MR. MUTHUSWAMY (Assistant Manager) who

accorded permission to do project work at (KOTAK MAHINDRA LTD) and guiding in doing my

project work

I extent my gratitude to Dr. ANAND BETHAPUDI (HOD), Department of Master of Business

Administration, GURU NANAK INSTITUTE OF TECHNOLOGY for accommodating me in the

family of Gurunanak.

My must sincere thanks to my guide, Ravi Shankar (Assistant Professor), GURU NANAK INSTITUTE

OF TECHNOLOGY, for motivating me to give my best for my project without which this project report

would not be called a success.

SATHIRI NIREESHA

Management of studies

4
 ABSTRACT

Information Technology has significantly increased the operational effectiveness of banks.

Automation has greatly decreased manual labour, minimised errors, and increased overall

productivity for regular jobs including account administration, transaction processing, and

document verification.

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 CONTENTS

CHAPTERS PARTICULARS PAGE

NO’S
CHAPTER-I INTRODUCTION

1.1 NEED FOR THESTUDY

1.2 OBJECTIVES OF THESTUDY

1.3 SCOPEOF THE STUDY

1.4 RESEARCH METHODOLOGY

1.5 LIMITATIONS OF THESTUDY

CHAPTER-II REVIEW OF LITERATURE

CHAPTER-III COMPANY PROFILE

CHAPTER-IV DATA ANALYSIS AND INTERPRETATIONS

FINDINGSCON
CLUSIONS
CHAPTER-V
SUGGESTIONS

BIBLIOGRAPHY

6
 CHAPTER-I
INTRODUCTION

7
 INTRODUCTION

India is a developing country. Nowadays many people are interested to invest in

financial markets especially on equities to get high returns, and to save tax in honest
way. Equities are playing a major role in contribution of capital to the business from the
beginning. Since the introduction of shares concept, large numbers of investors are
showing interest to invest in stock market.

In an industry plagued with skepticism and a stock market increasingly difficult to

predict and contend with, if one looks hard enough there may still be a genuine aid for
the Day Trader and Short Term Investor.

The price of a security represents a consensus. It is the price at which one person
agrees to buy and another agrees to sell. The price at which an investor is willing to buy
or sell depends primarily on his expectations. If he expects the security's price to rise,
he will buy it; if the investor expects the price to fall, he will sell it. These simple
statements are the cause of a major challenge in forecasting security prices, because they
refer to human expectations. As we all know firsthand, humans expectations are neither
easily quantifiable nor predictable. If prices are based on investor expectations, then
knowing what a security should sell for (i.e., fundamental analysis) becomes less
important than knowing what other investors expect it to sell for. That's not to say that
knowing what a security should sell for isn't important--it is. But there is usually a fairly
strong consensus of a stock's future earnings that the average investor cannot disprove

Fundamental analysis and technical analysis can co-exist in peace and complement each
other. Since all the investors in the stock market want to make the maximum profits
possible, they just cannot afford to ignore either fundamental or technical analysis.

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INFORMATION TECHNOLOGY IN BANKING SECTOR:
Banking industry is a backbone of Indian financial system and it is afflicted by many
challenging forces. One such force is revolution of information technology. In today's
era, technology support is very important for the successful functioning of the banking
sector. Without IT and communication we cannot think about the success of banking
industry, it has enlarged the role of banking sector in Indian economy. For creating an
efficient banking system, which can respond adequately to the needs of growing
economy, technology has a key role to play. In past 10years, banks in India have
invested heavily in the technology such as Tele banking, mobile banking, net banking,
ATMs, credit cards, debit cards, electronic payment systems and data warehousing and
data mining solutions, to bring improvements in quality of customer services and the
fast processing of banking operation. Heavy investments in IT have been made by the
banks in the expectation of improvement in their performance. But important in the
performance depends upon, differences in the deployment, use and effectiveness of IT.
Information technology in banking sector refers to the use of sophisticated information
and communication technologies together with computer science tenable banks to offer
better services to its customers in a secure, reliable and affordable manner and sustain
competitive advantage over other banks. The significance of technology is greatly felt
in the financial sector in view of the competitive advantage for banks resulting in the
efficient customer service. In the development of Indian Economy, Banking sector
plays a very important and crucial role. With the use of technology there had been an
increase in penetration, productivity and efficiency. It has not only increased the cost
effectiveness but also has helped in making small value transactions viable. Electronic
delivery channels, ATMs, variety of cards, web based banking, and mobile banking
are the names of few outcomes of the process of automation and computerization in
Indian banking sector

Banking environment has become highly competitive today. To be

able to survive and grow in the changing market environment banks are going for the
latest technologies, which is being perceived as an „enabling resource‟ that can help in
developing learner and more flexible structure that can respond quickly to the dynamics
of a fast changing market scenario. It is also viewed as an instrument of cost reduction
and effective communication with people and institutions associated with the banking
business.

9
The Software Packages for Banking Applications in India had their beginnings in the
middle of 80s, when the Banks started computerizing the branches in a limited manner.
The early 90s saw the plummeting hardware prices and advent of cheap and
inexpensive but high powered PC‟s and Services and banks went in for what was called
Total Branch Automation (TBA) packages. The middle and late 90s witnessed the
tornado of financial reforms, deregulation globalization etc. coupled with rapid
revolution in communication technologies and evolution of novel concept of
convergence of communication technologies, like internet, mobile/cell phones etc.
Technology has continuously played on important role in the working of banking
institutions and the services provided by them. Safekeeping of public money, transfer of
money, issuing drafts, exploring investment opportunities and lending drafts, exploring
investment being provided. Information Technology enables sophisticated product
development, better market infrastructure, implementation of reliable techniques for
control of risks and helps the financial intermediaries to reach geographically distant
and diversified markets. Internet has significantly influenced delivery channels of the
banks. Internet has emerged as an important medium for delivery of banking products
and services.

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 NEED OF THE STUDY

The banking system is slowly shifting from the Traditional Banking towards
relationship banking. Traditionally the relationship between the bank and its
customers has been on a one-to-one level via the branch network. This was put
into operation with clearing and decision making responsibilities concentrated at
the individual branch level. The head office had responsibility for the overall
clearing network, the size of the branch network and the training of staff in the
branch network. The bank monitored the organization's performance and set the
decision making parameters, but the information available to both branch staff
and their customers was limited to one geographical location.

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 SCOPE OF THE STUDY

The study covers the services offered by Banks to the customers by the use
of technology. More specifically latest technological delivery channels, namely
ATM/Debit card, Credit card, Internet Banking, Mobile Banking etc.
have been take n up for the purpose of study. This project is an analytical study
based on random sampling to ascertain the usage and satisfaction level and
customer attitude towards these channels. The study also gives an idea of
rendering secure, 24X7X365 E-banking services at a lower cost without
compromising with the quality thereby resulting in the widening of customer base

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 OBJECTIVES OF THE STUDY

The objective of this project is to deeply analyze our Banking Sector

for investment purpose by monitoring the growth rate and performance on the
basis of historical data.

The main objectives of the Project study are:

 To study the role of technology in banks.

 To determine the technology in banks used by customers.

 To analyses the banking innovations after computerization of banks in India.

 To study the overall growth of Indian Economy which is growing at a fast pace.

 Detailed analysis of Banking Sector which is gearing towards international

standards

 Analyze the impact of qualitative factors on industry‟s and company‟s prospects

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 RESEARCH METHODOLOGY

Secondary research was conducted to review the present status of E Banking

Type of Research

Descriptive: Descriptive research includes surveys and fact finding enquiries

of kinds.
Fundamental:

The information and data for the research can be collected through primary
and secondary sources i.e. published articles, journals, newspapers, reports,
books and websites. Data has been collected from the websites of the
Reserve Bank of India and also taken from various committee reports
submitted to Government of India on Financial Inclusion.
Area of Research

. to study the awareness and satisfaction level of the customers of KOTAK

MAHINDRA BANK LIMITED compared with other banks
Data Collection Methods Primary Data
The study is conducted by using questionnaire, the study depended on primary data.

Secondary Data

Secondary data is collected from the books and surveys

Research Instrument

All analysis is done by using basic graphical presentations.

Questionnaire Design

Questionnaire design is a multistage process that requires attention to many

details at once. Designing the questionnaire is complicated because surveys
can ask about topics in varying degrees of detail, questions can be asked in
different ways, and questions asked earlier in a survey may influence how
people respond to later questions. Researchers also are often interested in
measuring change over time and therefore must be attentive to how opinions
or behaviors have been measured in prior surveys.

14
Surveyors may conduct pilot tests or focus groups in the early stages of questionnaire
development in order to better understand how people think about an issue or comprehend
a question. Pretesting a survey is an essential step in the questionnaire design process to
evaluate how people respond to the overall questionnaire and specific questions.
For many years, surveyors approached questionnaire design as an art, but substantial
research over the past thirty years has demonstrated that there is a lot of science
involved in crafting a good survey questionnaire. Here, we discuss the pitfalls and best
practices of designing questionnaires.
Sampling Procedure

A simple random sampling method (Convenience sampling) is used to collect data from
respondents.

Sample Size

Primary data is collected from 100 respondents.

Statistical Tools:

The study depends on primary data. The data collected were systematically tabulated,
analyzed, interpreted and presented in this report. Tables are used for the analysis of the
collected data. The data is also neatly presented with the help of pie charts. Percentages
and averages are used to represent the data.
Sample Design
Sufficient care has been taken to select the sample respondents. For this purpose, simple
random sampling was used to select the respondents. The present study relied on primary
data collected through administering a structured Interview Schedule and Questionnaire.
Period of Study

Based on the availability of data, the period of study has been confined to fifteen years
from 2017-2021. All the websites of the banks and voice of managers have been explored
during this period.

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 LIMITATIONS

 Banks are not giving me all information about IT in banking sector and
challenges.
 They do not permit to meet any employees in their banks.

 Fear factor - One of the biggest hurdles in online banking is preference to

conventional banking method by older generation and mostly people from the
rural areas.
 The fear of losing money in the online transaction is a barrier to usage of
e-banking.
 Training - Lack of adequate knowledge and skills is a major deterrent for
employees to deal with the innovative and changing technologies in banks.
 Training at all levels on the changing trends in IT is the requirementof the
day for the banks.

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 CHAPTER-II
REVIEW OF LITERATURE

17
REVIEW OF LITERATURE

ARTICLES :

ARTICLE 1:

TITLE: Perceptions On Mobile Banking Offered By Indian

Overseas Bank AUTHOR: Palani and Yasodha P.
YEAR:
(Apr 2012)
ABSTRAC
T:
The research paper is focused on customer‟s perceptions on mobile banking offered by
Indian Overseas Bank and it also focuses on the various drivers that drive mobile
banking consumers.. The results of this study showed that gender, education and income
of the consumers play an important role in usage of mobile banking. Most of the
researches are focused on the acceptance of the mobile banking technology due to which
not much research has been conducted on people. The research reveals that if skills can
be upgraded among the consumers there will be greater willingness on the part of
consumers toward the use of Mobile banking. Some the factors like security trust,
gender, education, religion, and price can have minimal effect on consumer mindset
towards Mobile banking compared to the other factors.

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ARTICLE 2 :

TITLE: Factors Influencing The Adoption Intention Of

Mobile Commerce AUTHOR: Thakur, Rakhi; Srivastava,
Mala.
YEAR
:(2013)
ABSTRAC
T:
The paper studies the factors influencing the adoption intention of mobile commerce.
Perceived usefulness, perceived ease of use and social influence are found to be
significant dimensions of technology adoption readiness to use mobile commerce while
facilitating conditions were not found to be significant. The results of the research study
also indicate the perceived credibility risk defined by security risk and privacy risk are
significantly associated with behavioral intention in negative relation, which indicates that
security and privacy concerns are important in deterring customers from using mobile
commerce. This research study developed an integrated model for behavioral intention
towards financial innovations. Practical implications of this study is one of the few
empirical studies which have investigated the adoption of mobile commerce in India,
which is considered one of the fastest growing countries in terms of mobile usage. The
study relates to inclusion of both utilitarian and credibility aspect of adoption intention. It
gives an empirical basis on which mobile and banking companies can base their mobile
payments marketing strategy.
.

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ARTICLE 3:

TITLE: Mobile banking as a new channel to the existing banking channels

AUTHOR: Kalaiarasi, H
&Srividya, V. 3. YEAR :
(Jul-Sep 2012)
ABSTRACT:

Mobile banking as a new channel to the existing banking channels provides convenient
and cost efficient banking services anytime anywhere. It is observed that, though India
has strong potential for mobile banking only 5% of mobile subscribers are registered
users of mobile banking. Attracting the new customers may not be easy than retaining
the existing mobile banking customers 2009). Hence the current research focuses on the
factors influencing actual usage of mobile banking services. The results shows that,
Indians mobile banking usage is influenced by ease of mobile banking technology, its
suitability to the user‟s lifestyle and the benefits like mobility and mobile transactions.
However customer‟s perception towards security of mobile transactions and privacy
fears demotivates actual usage.

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ARTICLE 4 :

TITLE: Factors Influencing The Adoption Intention Of

Mobile Commerce AUTHOR: Laukkanen &Tommie.
YEAR :
(2007).
ABSTRAC
T:
The aim of the paper is to explore and compare customer value perceptions in internet and
mobile banking. The results indicate that customer value perceptions in banking actions
differ between internet and mobile channels. The findings suggest that efficiency,
convenience and safety are salient in determining the differences in customer value
perceptions between internet and mobile banking. By understanding how and what kind
of value different service channels provide for customers service providers are better
enabled to create actions to enhance internet and mobile banking adoption. The
contribution of the paper lies in achieving a more profound understanding on consumer
value perceptions to internet and mobile banking.

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ARTICLE 5:

TITLE: The Potential That Mobile Banking Provides For Both The Banks And The
Mobile Carriers. AUTHOR: Goswami, Divakar; Raghavendran, Satish..
YEAR :
(2009)
ABSTRAC
T:
The research is conducted to determine the potential that mobile banking provides for
both the banks and the mobile carriers. After the secondary research the report gives an
insight into the best-practices based on a critical evaluation of partnership models. Banks
and mobile carriers have tested these waters timidly, and many of the resulting offerings
were expensive to the banks and mobile carriers and less than enticing to their customers.
This report weeds out ineffective partnering models that companies stumble into on their
way to developing mobile-banking and identifies the keys to successful partnerships.

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ARTICLE 6:

Title : A study on the purchase of the assets by the organizations

Author : I. Satyanarayana

Journal : This journal keeps readers up-to date with current developments &
strategies in assets management.

Abstract :

These are items of value which the organization has bought and will use for an
extended period of time; Role of IT in banking normally include items such as land
and buildings, motor vehicles, furniture, office equipment, computers, fixtures and
fittings, and plant and machinery. These often receive favourable tax treatment
(depreciation allowance) over short-term assets. According to International
Accounting Standard (IAS) 19, Role of IT in banking are assets whose future
economic benefit is probable to flow into the entity, whose cost can be measured
reliably.

It is pertinent to note that the cost of a Role of IT in banking is its purchase price,
including import duties and other deductible trade discounts and rebates. In addition,
cost attributable to bringing and installing the asset in its needed location and the
initial estimate of dismantling and removing the item if they are eventually no longer
needed on the location.

15
ARTICLE 7:

Title : A study a business entity is to make profit and increase the wealth of its owners.

Author : N.B.C SIDHU

Journal : Presenting expert briefings , tightly focused analysis , research & reviews by
leading expert.

Abstract :

The primary objective of a business entity is to make profit and increase the wealth of
its owners. In the attainment of this objective it is required that the management will
exercise due care and diligence in applying the basic accounting concept of “Matching
Concept”. Matching concept is simply matching the expenses of a period against the
revenues of the same period.

The use of assets in the generation of revenue is usually more than a year- that is
long term. It is therefore obligatory that in order to accurately determine the net
income or profit for a period depreciation is charged on the total value of asset that
contributed to the revenue for the period in consideration and charge against the same
revenue of the same period. This is essential in the prudent reporting of the net
revenue for the entity in the period.

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ARTICLE 8:

Title : A Study of basic difference between the historical cost of that asset and it
associated depreciation.

Author : BLOEM & GORTER

Journal : A journal on the causes of making of poor Role of IT in banking cited by 4

related articles.

Abstract:

Net book value of an asset is basically the difference between the historical cost of
that asset and it associated depreciation. From the foregoing, it is apparent that in
order to report a true and fair position of the financial jurisprudence of an entity it is
relatable to record and report the value of Hedging on derivative sat its net book
value. Apart from the fact that it is enshrined in Standard Accounting Statement
(SAS) 3 and IAS 19 that value of asset should be carried at the net book value, it is the
best way of consciously presenting the value of assets to the owners of the business
and potential investor.

17
ARTICLE 9:

Title : Efficiently Inefficient Markets for Assets and Role of IT in banking

Author : Nicolae Gârleanu, & LasseHeje Pedersen

Journal : The Journal of Finance

Year 2019

Abstract:

It consider a model where investors can invest directly or search for an Role of IT in
banking, information about assets is costly, and manager‟s charge an endogenous fee.
The efficiency of asset prices is linked to the efficiency of the Role of IT in banking: if
investors can find managers more easily, more money is allocated to active
management, fees are lower, and asset prices are more efficient. Informed managers
outperform after fees, uninformed managers underperform, while the average
manager's performance depends on the number of “noise allocators.” Small investors
should remain uninformed, but large and sophisticated investors benefit from
searching for informed active managers since their search cost is low relative to
capital. Hence, managers with larger and more sophisticated investors are expected to
outperformer.

18
ARTICLE 10:

Title : Role of IT in banking Within Commercial Banking Groups International

Evidence.

Author : Pedro piers, Pedro Matos, Miguel A. Ferreira

Journal : The Journal of Finance

Year : 2019

Abstract :

Role of IT in banking, also known as "tangible assets “or Property, Plant, And
Equipment (PP&E), is a term used in accounting for assets and property that cannot
easily be converted into cash. This can be compared with current assets such as cash or
bank accounts, which are described as liquid assets. In most cases, only tangible
assets are referred to as fixed. IAS 17 (International Accounting Standard) defines
Role of IT in banking whose future economic benefit is probable to flow into the
entity, whose cost can be measured reliably. Moreover, a fixed/non-current asset can
also be defined as an asset not directly sold to a firm's consumers/end-users. Its non-
current assets would be the oven used to bake bread, motor vehicles used to transport
deliveries, cash registers used to handle cash payments, etc. While these non-current
assets have value, they are not directly sold to consumers and cannot be easily
converted to cash.

19
 CHAPTER-III
COMPANY PROFILE

20
 COMPANY PROFILE
Kotak Mahindra Bank is the fourth largest Indian private sector bank by market capitalization,
headquartered in Mumbai, Maharashtra.
Since the inception of the erstwhile Kotak Mahindra Finance Limited in 2085, it has been a
steady and confident journey leading to growth and success. The milestones of the group growth
story are listed below year wise.

 2018-2020  Ahmedabad Derivatives and Commodities Exchange, a Kotak anchored

enterprise, became operational as a national commodity exchange.

2013  Kotak Mahindra Bank Ltd. opened a representative office in Dubai
 Entered Ahmedabad Commodity Exchange as anchor investor.

2008  Launched a Pension Fund under the New Pension System.

2006  Bought the 25% stake held by Goldman Sachs in Kotak Mahindra Capital Company
and Kotak Securities.

2005  Kotak Group realigned joint venture in Ford Credit; their stake in Kotak Mahindra
Prime was bought out (formerly known as Kotak Mahindra Primus Ltd) and Kotak
group‟s stake in Ford credit Kotak Mahindra was sold.
 Launched a real estate fund.

 Launched India Growth Fund, a private equity fund.
2004

2003  Kotak Mahindra Finance Ltd. converted into a commercial bank - the first Indian
company to do so.

2001  Matrix sold to Friday Corporation.
 Launched Insurance Services.
 Kotak Securities Ltd. was incorporated

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2000  Kotak Mahindra tied up with Old Mutual plc. for the Life Insurance business.
 Kotak Securities launched its on-line broking site.
 Commencement of private equity activity through setting up of Kotak Mahindra
Venture Capital Fund.
  Entered the mutual fund market with the launch of Kotak Mahindra Asset
1998 Management Company.

1996  The Auto Finance Business is hived off into a separate company - Kotak Mahindra
Prime Limited (formerly known as Kotak Mahindra Primus Limited). Kotak
Mahindra takes a significant stake in Ford Credit Kotak
 Mahindra Limited, for financing Ford vehicles. The launch of Matrix Information
Services Limited marks the Group's entry into information distribution.

1995  Brokerage and Distribution businesses incorporated into a separate company -
Securities. Investment banking division incorporated into a separate company -
Kotak Mahindra Capital Company

 Entered the Funds Syndication sector
1992

1991  The Investment Banking Division was started. Took over FICOM, one of India's
largest financial retail marketing networks

1990  The Auto Finance division was started
 1987  Kotak Mahindra Finance Ltd entered the Lease and Hire Purchase market

1986  Kotak Mahindra Finance Ltd started the activity of Bill Discounting

Our Businesses
Multiple businesses. One brand.

Kotak Mahindra is one of India's leading banking and financial services groups, offering a wide
range of financial services that encompass every sphere of life.

70
Kotak Mahindra Bank Ltd

 Kotak Mahindra Bank Ltd is a one stop shop for all banking needs.
The bank offers personal finance solutions of every kind from savings accounts to credit
cards, distribution of mutual funds to life insurance products. Kotak Mahindra Bank
offers transaction banking, operates lending verticals, manages IPOs and provides
working capital loans. Kotak has one of the largest and most respected Wealth
Management teams in India, providing the widest range of solutions to high net worth
individuals, entrepreneurs, business families and employed professionals.

For more information, please visit the Kotak Mahindra Bank website
www.kotak.com/bank/personal-banking/
Kotak Mahindra Old Mutual Life Insurance Ltd

 Kotak Mahindra Old Mutual Life Insurance Ltd is a 74:26 joint

venture between Kotak Mahindra Bank Ltd., its affiliates and Old Mutual plc. A
Company that combines its international strengths and local advantages to offer its
customers a wide range of innovative life insurance products, helping them take
important financial decisions at every stage in life and stay financially independent. The
company covers over 3 million lives and is one of the fastest growing insurance
companies in India. www.kotaklifeinsurance.com
Kotak Securities Ltd

 Kotak Securities is one of the largest broking houses in India with a

wide geographical reach. Kotak Securities operations include stock broking and
distribution of various financial products including private and secondary placement of
debt, equity and mutual funds.

71
 Kotak Securities operate in five main areas of business:

o Stock Broking (retail and institutional)

o Depository Services
o Portfolio Management Services
o Distribution of Mutual Funds
o Distribution of Kotak Mahindra Old Mutual Life Insurance Ltd products

For more information, please visit the Kotak Securities website

www.kotaksecurities.com
Kotak Mahindra Capital Company (KMCC)

 Kotak Investment Banking (KMCC) is a full-service investment bank

in India offering a wide suite of capital market and advisory solutions to leading
domestic and multinational corporations, banks, financial institutions and government
companies.

Our services encompass Equity & Debt Capital Markets, M&A Advisory, Private Equity
Advisory, Restructuring and Recapitalization services, Structured Finance services and
Infrastructure Advisory & Fund Mobilization.

For more information, please visit the Kotak Investment Banking website
www.kmcc.co.in
Kotak Mahindra Prime Ltd (KMPL)

 Kotak Mahindra Prime Ltd is among India's largest dedicated

passenger vehicle finance companies. KMPL offers loans for the entire range of
passenger cars, multi-utility vehicles and pre-owned cars. Also on offer are inventory
funding and infrastructure funding to car dealers with strategic arrangements via various
car manufacturers in India as their preferred financier.

72
 For more information, please visit the KMPL website http://carloan.kotak.com
Kotak International Business

 Kotak International Business specialises in providing a range of

services to overseas customers seeking to invest in India. For institutions and high net
worth individuals outside India, Kotak International Business offers asset management
through a range of offshore funds with specific advisory and discretionary investment
management services.

For more information, please visit the Kotak Mahindra International Business website
www.investindia.kotak.com
Kotak Mahindra Asset Management Company Ltd (KMAMC)

 Kotak Mahindra Asset Management Company offers a complete

bouquet of asset management products and services that are designed to suit the diverse
risk return profiles of each and every type of investor. KMAMC and Kotak Mahindra
Bank are the sponsors of Kotak Mahindra Pension Fund Ltd, which has been appointed
as one of six fund managers to manage pension funds under the New Pension Scheme
(NPS).

For more information, please visit the KMAMC website

www.kotakmutual.com/kmw/main.htm
Kotak Private Equity Group (KPEG)

 Kotak Private Equity Group helps nurture emerging businesses and

mid-size enterprises to evolve into tomorrow's industry leaders. With a proven track
record of helping build companies, KPEG also offers expertise with a combination of
equity capital, strategic support and value added services. What differentiates KPEG is

73
 not merely funding companies, but also having a close involvement in their growth as
board members, advisors, strategists and fund-raisers.

For more information, please visit the KPEG website www.privateequityfund.kotak.com

Kotak Realty Fund

 Kotak Realty Fund deals with equity investments covering sectors

such as hotels, IT parks, residential townships, shopping centres, industrial real estate,
health care, retail, education and property management. The investment focus here is on
development projects and enterprise level investments, both in real estate intensive
businesses.

For more information, please visit the Kotak Realty Fund website
www.realtyfund.kotak.com

Senior Management-2020-16

Mr. Uday S. Kotak

Executive Vice Chairman and Managing Director

Mr. Uday Kotak, is the Executive Vice-Chairman and Managing Director of the Bank, and its
principal founder and promoter. Mr. Kotak is an alumnus of Jamnalal Bajaj Institute of
Management Studies.

In 2085, when he was still in his early twenties, Mr Kotak thought of setting up a bank when
private Indian banks were not even seen in the game. First Kotak Capital Management Finance
Ltd (which later became Kotak Mahindra Finance Ltd), and then with Kotak Mahindra Finance
Ltd, Kotak became the first non-banking finance company in India's corporate history to be
converted into a bank. Over the years, Kotak Mahindra Group grew into several areas like stock
broking and investment banking to car finance, life insurance and mutual funds.

Among the many awards to Mr Kotak's credit are the CNBC TV19 Innovator of the Year Award

74
in 2006 and the Ernst & Young Entrepreneur of the Year Award in 2003. He was featured as one
of the Global Leaders for Tomorrow at the World Economic Forum's annual meet at Davos in
2096. He was also featured among the Top Financial Leaders for the 21st Century by
Euromoney magazine. He was named as CNBC TV19 India Business Leader of the Year 2008
and as the most valued CEO by businessworld in 2018.

Mr. C Jayaram

Joint Managing Director

Mr. C. Jayaram, is a Joint Managing Director of the Bank and is currently in charge of the
Wealth Management Business of the Kotak Group. An alumnus of IIM Kolkata, he has been
with the Kotak Group since 2090 and member of the Kotak board in October 2099. He also
oversees the international subsidiaries and the alternate asset management business of the group.
He is the Director of the Financial Planning Standards Board, India. He has varied experience of
over 25 years in many areas of finance and business, has built numerous businesses for the
Group and was CEO of Kotak Securities Ltd. An avid player and follower of tennis, he also has
a keen interest in psephology.

Mr. Dipak Gupta

Joint Managing Director

An electronics engineer and an alumnus of IIM Ahmedabad, Mr. Gupta has been with the Kotak
Group since 2092 and joined the board in October 2099.

He heads commercial banking, retail asset businesses and looks after group HR function. Early
on, he headed the finance function and was instrumental in the joint venture between Kotak
Mahindra and Ford Credit International. He was the first CEO of the resulting entity, Kotak
Mahindra Primus Ltd.

Awards
Recent achievements

At Kotak Mahindra Group we take a client-centric view and constantly innovate to provide you
with the best of services and infrastructure. We have regularly received accolades that stand
75
testimony to our success in this endeavour. Some of our recent achievements are:

 Won „Gold Award for Best Innovation – World‟s first socially powered bank account‟
and „Gold Award for Best App developed – World‟s first banking application using
Twitter‟ awards at the Indian Digital Media Awards 2020 for Kotak Jifi
 Recognised as Highest Fundraising Company in Corporate Challenge category in
Standard Chartered Mumbai Marathon 2020
 Kotak Mahindra Bank was ranked 292nd among India's most trusted brands according to
the Brand Trust Report 2019, a study conducted by Trust Research Advisory. In the
Brand Trust Report 2020, Kotak Mahindra Bank was ranked 861st among India's most
trusted brands and subsequently, according to the Brand Trust Report 2020, Kotak
Mahindra Bank was ranked 168th among India's most trusted brands.
 Adjudged Best Bank among Emerging Banks at Outlook Money Awards 2020
Banking

 Euromoney
Best Private Banking Services (India), 2020.
 ICAI Award
Excellence in Financial Reporting under Category 1 - Banking Sector for the year ending
31st March, 2019
 Asiamoney
Best Local Cash Management Bank 2019
 IDG India
Kotak won the CIO 150 'The Agile 150' award 2018
 IDRBT
Banking Technology Excellence Awards Best Bank Award in IT Framework and
Governance Among Other Banks' - 2018
Banking Technology Award for IT Governance and Value Delivery, 2008
 IR Global Rankings
Best Corporate Governance Practices - Ranked among the top 5 companies in Asia
Pacific, 2013

76
  FinanceAsia
Best Private Bank in India, for Wealth Management business, 2013
 Kotak Royal Signature Credit Card
Was chosen "Product of the Year" in a survey conducted by Nielsen in 2013
 IBA Banking Technology Awards
Best Customer Relationship Achievement - Winner 2008 & 2013
Best overall winner, 2007
Best IT Team of the Year, 4 years in a row from 2006 to 2013
Best IT Security Policies & Practices, 2007
 Euromoney
Best Private Banking Services (overall), 2013
 Emerson Uptime Champion Awards
Technology Senate Emerson Uptime Championship Award in the BFSI category, 2008
Miscellaneous

 Best Local Trade Bank in India

The UK based Trade & Forfaiting Review awarded Kotak Mahindra Bank Ltd. the
Bronze Award in the category of Best Local Trade Bank in India at the TFR Awards
2018.
 LACP Vision Awards 2018 for Annual Report 2018-16
Platinum Award - Best among Banking Category, APAC
Gold Award - Most Creative Report, APAC
Ranked No. 21 among Top 50 Reports, APAC
Ranked No. 87 among the World's Top 150 Annual Reports
 Businessworld
'Most Valuable CEO' overall, 2018 awarded to Mr. Uday Kotak, Executive Vice
Chairman & Managing Director
 CNBCTV 19
'Best Performing CFO in the Banking/Financial Services sector by CNBCTV 19 CFO
Awards 2018 awarded to Mr. Jaimin Bhatt
 GIREM
GIREM awarded Kotak Realty Funds Group, the "Investor of the Year" Award for 2013
77
  IBA Banking Technology Awards
Best Use of Business Intelligence - up, 2008
Best Enterprise Risk Management - Runner up, 2008
 The Great Places to Work Institute, India
Best Workplaces in India, 2008
 Hewitt
15th Best Employer in India, 2007, 2008 & 2013
 Financial Insights Innovation Award
Best Innovation in Enterprise Security Management in the Asia Pacific Region, 2013
 Frost & Sullivan
Best Passenger Vehicle Finance Company in India, 2006
 CNBC TV 19
Indian Business Leader of the Year, 2008 awarded to Uday Kotak, Executive Vice
Chairman & Managing Director
Banking information

The Bank publishes the standalone and consolidated results on a quarterly basis. The standalone
results is subjected to "Limited Review" by the auditors of the Bank. The same are also reviewed
by the Audit Committee before submission to the Board. Along with the quarterly results, an
earnings update is also prepared and posted on the website of the Bank. Every quarter, the
Executive Vice-Chairman and Managing Director and the Executive Director(s) participate on a
call with the analysts / shareholders, the transcripts of which are posted on the website of the
Bank. The Bank also has dedicated personnel to respond to queries from investors.

Financial Calendar:For each calendar quarter, the financial results are reviewed and taken on
record by the Board during the last week of the month subsequent to the quarter ending. The
audited annual accounts as at 31st March are approved by the Board, after a review thereof by
the Audit Committee. The Annual General Meeting to consider such annual accounts is held in
the second quarter of the financial year.

Stock Exchanges on which listed:

Sr.No Name & Address of Stock Exchange Market Scrip Code

78
 The Bombay Stock Exchange Limited
Phiroze Jeejeebhoy Towers
1 500247
Dalal Street, Fort,
Mumbai 400 023

National Stock Exchange of India Limited

Exchange Plaza, 5th Floor,
2 KOTAKBANK
Bandra-Kurla Complex,
Bandra, Mumbai 400 051

Luxembourg Stock Exchange BP 175, L-2018

3
Luxembourg

Trading of shares to be in compulsorily dematerialized form:The equity shares of the Bank

have been activated for dematerialisation with the National Securities Depository Limited and
with the Central Depository Services (India) Limited vide ISIN INE237A01528.

Share Transfer System: Applications for transfers, transmission and transposition are received
by the Bank at its Registered Office or at the office(s) of its Registrars & Share Transfer Agents.
As the shares of the Bank are in dematerialised form, the transfers are duly processed by
NSDL/CDSL in electronic form through the respective depository participants. Shares which are
in physical form are processed by the Registrars & Share Transfer Agents, Karvy Computershare
Private Limited, on a regular basis and the certificates despatched directly to the investors.

Investor Helpdesk:Share transfers, dividend payments and all other investor related activities
are attended to and processed at the office of our Registrars & Share Transfer Agents. For
lodgement of Transfer Deeds and any other documents or for any grievances/complaints, kindly
contact Karvy Computershare Private Limited, contact details of which are provided elsewhere
in the Report.

For the convenience of the investors, transfers and complaints from the investors are accepted at
the Registered Office between 9:30 a.m. to 5:30 p.m. from Monday to Friday except on bank
holidays:

79
Corporate Responsibility
Community investment and development
Kotak Mahindra views Corporate Social Responsibility as an investment in society and in its
own future. Kotak uses the power of its human and financial capital to help in transforming
communities into vibrant, desirable places for people to live. The group leverages its core
competencies in three areas:

 Sustainability
An integral part of all Kotak Mahindra Group activities is to be consistently responsible
to shareholders, clients, employees, society and the environment.
 Economic Development
By helping people achieve their financial goals, Kotak strengthens the fabric of
communities and helps them overcome unemployment and poverty to help them shape
their future.
 Doing My Bit
A growing number of employees are committed to civic leadership and responsibility
with the support and encouragement of the Kotak Group. A number of employees have
been involved in strengthening communities through voluntary work, payroll giving and
management inputs.
For any CSR related queries, please contact:

Group CSR
Kotak Mahindra Bank Ltd
Tel. Board +91 22 6720 6720
Email: cr@kotak.com

80
 CHAPTER-VI
DATA ANALYSISAND
INTERPRETATION

81
 Here all the tables and graphs assert the field study findings
Table 4.1 Which category of the banks do you consider as most technologically advanced?

s.no Options No. of respondents Percentages (%)

1. Public sector bank 48 48%

2. Private sector bank 52 52%

Total 100 100%

100
90
80
70
60 Private sector bank
50
Public sector bank
40
30
20
10
0
No. of respondents Percentages (%)

Interpretations

There are at most 52% in private sector banks, whereas, there are 48% in Private sector banks

82
 Table 4.2 which attribute of the bank do you value the most?

s.no Options No. of respondents Percentages (%)

1. Quality of services 28 28%

2. Technology used 20 20%

3. Trust 36 36%
4. Location 8 8%

5. Type of the bank 8 8%

Total 100 100%

100%
100%
100%
99%
99%
99%
Percentages (%)
99%
99% No. of respondents
98%

Interpretations

People always believe in trustworthy banks ,who always stay loyal with their customers, whereas
some peoplesalso go for quality of service given by banking sector.
83
 Table 4.3 Which factor promotes you to use the new techniques in banking?

s.no Options No. of respondents Percentages (%)

1. Reduced time of 56 56%

transactions
2. Cost effectiveness 16 16%

3. Ease of use 36 36%

4. Technology savvy 9 9%

Total 100 100%

100%
100%
100%
99%
99%
99%
Percentages (%)
99%
99% No. of respondents
98%

Interpretations

People always used to go for easier way of transaction in banking sector, if there is a
technologicaldevelopment in market then it will promotes new techniques in banking sector.

84
Table 4.4 How familiar are you with computer usage level of your bank?

s.no Options No. of respondents Percentages (%)

1. No knowledge of 28 28%

computer
2. Beginner 4 4%

3. Average knowledge 28 28%

4. Advanced computer 24 24%

knowledge
5. Expert 12 12%
Total 100 100%

60
50
40
30
Percentages (%)
20
No. of respondents
10
Percentages (%)
0
No. of respondents

Interpretations

There should be more awareness of using computer techniques in banking sector, thus this
helps to growtechnological development in banks

85
Table 4.5 Customer level of usage of technology.

s.no Options No. of respondents Percentages (%)

1. Connected to the internet 28 28%

2. Uses E-mail 4 4%

3. ATM / Debit card services 28 28%

4. Credit card services 11 11%

5. Online banking services 12 12%

6. E-payments 10 10%

7. Electronic Fund Transfer 7 7%

Total 100 100%

30
25
20
15
10
5 Percentages (%)
0
No. of respondents

Interpretations

The most used technology in Banking sector are ATM services, whereas there is also an huge
demand in E-payment where they can use easily withdraw cash.

86
Table 4.6 How frequently do you use the following banking services per month?

s.no Options No. of respondents Percentages (%)

1. Branch banking 28 28%

2. ATM 4 4%

3. Internet banking 28 28%

4. Tele phone banking 24 24%

5. Mobile banking 12 12%

Total 100 100%

30

25

20

15
Percentages (%)
10 No. of respondents

0
Branch ATM Internet Tele Mobile
banking banking phone banking
banking

Interpretations

As the technological development is increasing day by day there is a lesser demand for Tele-
phone banking,whereas ATM services are most used by customers in Banking sectors

87
Table 4.7 Distribution of Respondents category
Age` Students Govt. Businessmen Private jobs total
Employees and others
/
teachers

16-30 32 12 5 22 71

31-40 5 9 6 18 38

41-50 3 7 10 10 30

51- up - 5 1 5 11

Total 40 33 22 55 150

88
Distribution of Gender

Here among 150 respondents 60 percent, respondents were male and

rest 40% respondents were female.

number

Female, 60
Male
Male, 90 Female

Figure 4.7: Distribution of Gender

Analysis Based on Survey questions

In the survey questionnaire, the researcher has used different types
of survey questions to collect information from the participants. The
researcher used some open-endedquestions, Yes/No questions, 1-5
scale questions and open- ended questions. However,to analyze the
close-ended questions the researcher will mainly use the MS excel
and close-ended questions will be evaluated based on the findings
points.

Use of online Banking facilities (Online banking/ ATM booth/

Debit/Creditcard, /online balance transfer and checking)

Initially the researcher has asked all the respondents to ensure

whether they use online banking services or not. Majority of the
respondents said they use online banking services.

89
Table 4.8: online banking/ e-banking users
Key Male Female Total
Yes (Often) 52 17 69 (46%)
No 17 18 35 (23.33%)
Sometimes 21 25 46 (30.66%)
Total 90 60 150 (100%)

Out of the total respondents 46% said that, they often used online
facilities provided by their banks, in addition 30.66% uses modern
facilities sometimes and only 23 percent said that they do not use
e banking or other technology

Sometimes, 30
.66%
Yes
Yes, 46%
No

No, 23.33%

based facilities.
Figure 4.8: online banking/ e-banking users
This represents that, a good number of people are currently using
technology based banking facilities such as; they are using ATM
services, credit card, debit card master card or internet banking. The
internet user have increased significantly (around 28 times more that
the number of internet user in 2001). Therefore, the percentage of e-
banking users is increasing.
Technology based banking and efficiency of banking service

The researcher tried to find out what customers' think about

technology based banking service. Do they think that, e-banking or
technology based banking has increased service efficiency?

82
 : Do you believe technology based banking service and
online banking increased bank service efficiency?
Key Male Female Total
Yes 65 35 100 (66.66%)
No 10 5 15 (10%)
Neutral 15 20 35 (23.33%)
Total 90 60 150 (100%)

Now, there is a good number of people (around 67%) those who believe that,
technology based banking and modern banking service have increased the customer
service and banking efficiency. However, either still many people do not think or
they may not believe that banking service has been improved. 10% people said that
customer service has not been improved and 23.33% of them did not comment
anything. A large number of respondents (66%) strongly believe that online
banking reduced queuing in banks.

Sale

Neutral
, Yes

Yes, No
No,

Figure 4.8: technology based banking increased efficiency and customer

service
Many of our respondents said that, efficiency has been increased but customer
depends on several things. In fact, customer service is a abroad issue depends on
how they deal with the customers, services costs as well as transaction

83
Table 4.9 Banks will be able to improve customer service level and tie their
customers closer to the bank by adopting new technologies
Key Male Female Total
Yes 69 47 116 (77.33

%%)
No 13 3 16 (10.66%)
Neutral 8 10 18 (12%)
Total 90 60 150 (100%)

Almost 80% people believe that, banks will be able to improve customer service
level and tie their customers closer to the bank by adopting new technologies.

Figure 4.9: Adopting new technology improves custome rs' experience

12%
10.66% Yes
No

77.33%

This clarifies that newer improvement, such as; 24/7 online banking, efficient
banking services, easy money transfer, internet banking, online transaction etc.
will surely bring the customers closer to the banks. Consequently, it will satisfy
the customers.

84
 45.00% 39.33%
40.00%
35.00%
30.00% 25.33%
25.00%
20.00% 16%
15.00% 11.33% Series 1
10.00% 8%
5.00%
0.00%
Strongly disagree neutral Agree Strongly
Disagree agree

Table 4.10: Costs of banking service is lower than before

Key Male Female Total

Strongly disagree 23 15 38 (25.33%)
Disagree 32 27 59 (39.33%)
Neutral 15 2 17 (11.33%)
Agree 13 11 24 (16%)
Strongly agree 7 5 12 (8%)
Total 90 60 150 (100%)

The findings here indicates that, a large number of people do not think that, costs
to get online or technology based banking service is higher than before. Now a day
consumer can do their banking in almost everywhere. Now they can receive cash,
send money without going to the bank but for each facility, they have costs. Most
people believe that costs have been increased than before.

85
More than 60% people said that, they do not believe the costs of banking service
are lower now. In fact, the researcher came to know that, every year the clients
have to pay some fixed amount of money for holding a card (for example; A
DBBL nexus card holder has to pay more than 550 taka ($7) even if they do not
do any transaction). To send money from one place to another, there are some
online charges too. In addition, using card of a bank in ATM machine of another
authorized bank costs substantialmoney per transaction. In addition, to send
money through mobile banking (Bkash and Dutch Bangla mobile banking) a
substantial amount of money charged (around 100 tk. ($1.3) Charged to transfer
5000 tk., which is high. The overall findings assert that, respondents think that,
costs of banking service has been increased with additional services. Nonetheless,
24% people supported that, cost is lower than before. Actually, now clients need
not to go banks frequently to withdraw their money or to send money. They can
do this near their home, so, some costs (such as; communication costs) has been
reduced.
Transaction process is fast and fair

The researcher tried to asses some narrow areas to identify customer services and
efficiency of the services. However, the speed of transaction process, customer
dealingis also a measurable issue for the organization. If a customer has to wait in
queue for long to complete a transaction in the bank, it may make him/her
dissatisfied. So, it is related with customer service and satisfaction.

86
 Table 4.11: Transaction process is fast and fair

Key Male Female Total

Strongly disagree 10 11 21 (14%)

Disagree 14 11 25 (16.66%)

Neutral 9 14 23 (15.33%)

Agree 40 19 59 (39.33%)

Strongly agree 17 5 22 (14.66%)

Total 90 60 150 (100%)

It represents that, a large number of people (55%) agree that transaction process is
fast and fair now. It means technological implementation has improved the speed
of customer dealing. Nevertheless, still 30% people do not agree that,
technological innovation and online banking have improved efficiency of
transaction. Therefore, organization has to work on this sector.

87
 45%
39.33%
40%
35%
30%
25%
20% 16.66%
14% 15.33% 14.66%
15% Series 1
10%
5%
0%
Strongly disagree neutral Agree Strongly
Disagree agree

Figure 4.11: Speed of transaction process is fair

This figure asserts that, customers believe that, transaction process' speed has
been improved.

Online banking is hassle free and usage in all network peripherals

What most customers think about banks and their services is a significant issue to be considered. However,
if customers think that, online banking or internet banking is flexible and perfect for the organization then
banks must focus on this. The percentage that believes online banking is hassle free is above 40%. On the
other hand, a good number of people (24%) did not make comment the issue. Still, it has to be said that,
online banking has some shortcomings, it has to be improved

88
 Figure 4.11: Online banking is hassle free and can be used by almost all
network peripherals

28.66%
30.00%
23.33%
25.00% 21.33%

20.00%
14%
15.00% 12.66%
Series 1
10.00%

5.00%

0.00%
Strongly disagree neutral Agree Strongly
Disagree agree

Efficiency of banking services

The researcher tried to know how the individual customer opines about the
efficiency of banking sector. Efficiency depends on transaction speed, network,
and customer service and so on. Now a day, bank cheque is converted within a
day but previously it took around a week to finalize the transaction of a cheque to
be converted into cash. However, the researcher asked them to inform whether
banking efficiency has been increased due to technology driven banking.

89
Table 4.12: Efficiency of Banking Services Has Been Increase

Key Male Female Total

Strongly disagree 2 - 2 (1.33%)
disagree 20 20 40 (26.66%)
Neutral 8 11 19 (12.666)
Agree 45 22 67(44.66%)
Strongly agree 15 7 22(14.66%)
Total 90 60 150 (100%)

Figure 4.12: Efficiency of Banking Services Has Been Increased

50.00% 46.66%
45.00%
40.00%
35.00%
30.00% 26.66%
25.00%
20.00% Series 1
14.66%
15.00% 12.66%
10.00%
5.00% 1.33%
0.00%
Strongly disagree Neutral Agree Strongly
disagree agree

The research findings show that, more than 60% people (agree+ strongly agree)
believe that the efficiency level of banking sector has been increased. On the other
hand, around 30% did not agree. This finding depicts how different customer
perceives things differently. As technology driven banking has maximized
customer interaction point, now customers can take banking service at different
places (such as: Fast track booth, mobile banking retail agent etc.). Therefore,
the efficiency has been improved than before.

Process of solving a problem

To be more specific about customer service and banking efficiency findings, the
researcher asked how any kind of problems are sorted. However, the findings are;
90
 Table 4.13: Any problems are sorted out fast

Key Male Female Total

Strongly disagree 7 13 20 (13.33%)

disagree 22 19 41(27.33%)
Neutral 17 7 24(16%)
Agree 39 20 59 (39.33%)
Strongly agree 5 1 6(4%)
Total 90 60 150 (100%)

Problem solving techniques and capabilities may satisfy customers

demand. However, the findings above showed that, still most of
customers are not satisfied to their banks while it comes about the
issue of problem solving.

45.00%
39.33%
40.00%
35.00%
30.00% 27.33%
25.00%
20.00% 16%
13.33% Series 1
15.00%
10.00%
4%
5.00%
0.00%
Strongly disagree Neutral Agree Strongly
disagree agree
Figure 4.13: Any problems are sorted out fast

45.00%
40.00% 39.33%
35.00%
30.00%
25.00%
20.00% 27.33%
15.00%
10.00%
5.00%
16%
0.00% Series 1
13.33%

4%

Strongly disagree Neutral Agree Strongly

disagree agree

The findings in the chart shows that, almost half people said
yes, problems are sorted out fast and remaining half said, no,
problems are not sorted out fast. This indicates that, majority of the
banks should increase the efficiency in dealing with problem
identification and problem solving of the customers. However, now
customers are busier, they want swift and easy solution of any
problem therefore; banks should concentrate on this issue.
Internet technology and opportunities to offer better banking
services Internet has become an important tool of communication
globally. However, The researcher tried to asses, what customers
perceive regarding the internet based banking. For many customers
e-banking means 24/7 ATM service but internet banking or online
banking is a lot more. very few banks provide internet based
banking services (such as: HSBC bank). However, the findings are:
Table 4.14: Internet technology would provide better
opportunities to establish a distinctive strategic position compared
to other traditional forms of banking services

Key Male Female Total

Strongly disagree 3 5 8 (5.33%)

disagree 10 6 16 (10.66%)
Neutral 14 1 15 (10%)
Agree 34 35 69(46%)
Strongly agree 29 13 42 ((28%)
Total 90 60 150 (100%)

In modern business and commerce, the contribution of internet or ICT

is undoubtedly significant. Even for the case of banking sector,
internet has brought big opportunity to satisfy customers in a speedier,
faster and easy way. However, our study findings showed that, almost
80% people believe that, internet will bring better opportunities to
establish a distinctive strategic position compared to other traditional
forms of banking services. On to this point.
 Figure 4.14: Internet technology would provide better
opportunities to establish a distinctive strategic position
compared to other traditional formsof banking services

46%
50.00%
45.00%
40.00%
35.00% 28%
30.00%
25.00%
20.00% Series 1
15.00% 10.66% 10%
10.00% 5.33%
5.00%
0.00%
Strongly disagree Neutral Agree Strongly
disagree agree

This finding clarifies that, a major portion of customers believes

that, internet technology based banking would provide better
services.

Satisfaction level with online banking facilities of current bank

So far, the researcher has discussed about the different aspect of
customer service, satisfaction and costs of the online-based banking
service of . In this stage, the researcher has thrown a direct question
to the respondents and the findings are;
Table 4.15: You are satisfied with online banking facilities of your current
bank

Key Male Female Total

Strongly disagree 10 5 15 (10%)

Disagree 18 21 39 (26%)
Neutral 8 4 8 (8%)
Agree 34 22 56 (37.33%)
Strongly agree 20 8 28(18.66%)
Total 90 60 150 (100%)

That was kind of a rapid question, whether the respondents are

satisfied with theircurrent banks or not. However, the judgment
depends on what the respondents answered. Currently 53%
customers are satisfied with their current banks on the other hand,
41% respondents said that, they are not satisfied. However, there are
different factors that causes behind the customers satisfaction.
Figure 4.15: You are satisfied with online banking facilities of your current
bank
40% 37.33%
35%
30% 26%
25%
18.66%
20%
15% 10% Series 1
10% 8%
5%
0%
Strongly disagree Neutral Agree Strongly
disagree agree

It indicates that, still a number of customers are not satisfied.

Therefore, the banks have to take initiatives in order to satisfy
customers and to create a profitable relationship

Technological innovation and implementation, customer

service, satisfaction, and reduced costs in the Banking sectors

This question depicts almost the central research questions.

However, through this question the researcher has tried to figure out
what generally consumers thing about the core issue of the research.
The finding is;
 Key Male Female Total

Strongly disagree 10 7 17 (11.33%)

disagree 20 18 38(25.33%)

Neutral 16 3 19(12.66%)

Agree 34 23 57 (38%)

Strongly agree 10 9 19 (12.66%)

Total 90 60 150 (100%)

Table 4.16: Technological innovation and implementation has

increased customer service, satisfaction and reduced costs in the
above table Banking sector
The findings showed that, around 50% or the respondents said that,
technology driven banking has increased customer service though
the question was a generalize viewpoint of the respondents. But
previous questions were scrutinized questions to figure out
customers' perception regarding the title. On the other hand, around
36% respondents did not agree with the statement and 12%
people did comment neither agree not disagree. This clarifies that,
still a large number of customers are not satisfied, therefore, banks
have to work on this issues.
Figure: 4.16: Technological innovation and implementation
has increased customer service, satisfaction and reduced costs
in the Banking sector
40.00% 38%
35.00%
30.00% 25.33%
25.00%
20.00%
15.00% 11.33% 12.66% 12.66%
Column1
10.00%
5.00%
0.00%
Strongly disagree Neutral Agree Strongly
disagree agree

Top priority issue in Banking Service

The researcher also tried to figure out what issues customers
prioritize while thinking about banking service. There might have
different types of choice by the customers but the researcher have
categorized some of them
 Table 4.17: Which one from the following gets your top
priority while youthink about banking Services?

Key Male Female Total

Costs and benefits 29 18 47 (31.33%)
Service efficiency 14 7 21 (14%)
Problem solving 11 3 14 (9.33%)
Ease of 5 2 7 (4.66%)

transaction
All of the above 31 30 61 (40.66%)
Total 90 60 150 (100%)

Costs of banking service and the benefits from the services are two
most important variables that work behind consumer satisfaction.
However, the findings asserts that majority of the respondents said
that they want top priority in costs and services category as well as
service efficiency, problem solving and ease of transactions.
 Figure: 4.17: Which one from the
following gets your top priority while
you think about banking Services?

Costs and Costs and benefits

All of the
benefits, 31.33% Efficiency in Service
above, 40.66%
Problem solving
Ease of transactions
All of the above
Efficiency in
Service, 14%

Ease of
Problem
transactions, 4.66% solving, 9.33%

It shows that, 40% respondents said that, they want all the benefits mentioned in
the table. However, major focus should be in minimizing costs and providing
more benefits.

A set of recommendations has been made based on the findings and suggestion
of the respondents as well as researcher's understanding on the whole issue. o

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 CHAPTER-V
FINDINGS SUGGESTIONS
CONCLUSION

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 FINDINGS :

 Meet customer expectations on service and facility offered by the bank.

 Customer retention.
 Managing the spread and sustain the operating profit.
 Retaining the current market share in the industry and the improving the same.
 Competition from other players in the banking industry.
 Frequent challenges in technologies used focusing up grades in
hardware andsoftware, attending to that implementation issues
and timely roll out.
 Managing technology, security and business risks.
 Defined and implemented efficient processes to be able to
reap benefits off technology to its fullest potential.
 Upgrading the skill of work force spread across the country.

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 SUGGESTIONS

Indian public sector banks that hold around 75 % of market share do have taken
initiative in the field of IT. Awareness and appreciation of IT are very much there.
What is needed is a
„big push‟ the way it was given in the post nationalization period for expansionary
activities. Information technology offers enormous potential and emancipated various
opportunities to the banking sector. It provides cost-effective, rapid and systematic
provision of services to the customers. Applications of IT in banks enables
sophisticated product development, reliable techniques for risk management, brings
transparency to the system and helps banking sector reach geographically distant and
diversified markets. IT and communication networking system have crucial impact on
money, capital and foreign exchange market. Banks should have a clear strategy
driven from the top and should ensure proper management of risks involved in internet
banking through adopting effective polices, procedures, and controlling measures. Policy
makers and supervisors must continuously assess the existing framework and should
introduce required modification in it

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 CONCLUSION

Information Technology offers enormous potential and various

opportunities to the Indian Banking sector. It provides cost-effective, rapidand
systematic provision of services to the customer. The efficient use of technology has
facilitated accurate and timely management of the increasedtransaction volumes of banks
which comes with larger customer base. Indian banking industry is greatly benefiting
from IT revolution all over the world. Another concept i.e., Virtual Banking or
Direct Banking is now gainingimportance all over the world. According to this concept
Banks offerproducts, services and financial transaction only through electronic delivery
channels generally without any physical branch. Owing to lower branchmaintenance
and manpower cost such banks are able to offer competitive pricing for theirproduct
and services as compared to traditional banks.

The Indian banks lag far behind the international banks in providing online banking. In
fact, this is not possible without creating sufficient infrastructure or presence of
sufficient number of users. Technology is going to hold the keys to future of banking.
So, banks should try to find out the trigger of change. Indian Banks need to focus on
swift and continued infusion of technology.

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 BIBLIOGRAPHY

Text books:

 Technology in banking Dr. R .Sangeetha

 Information technology data communications and electronic banking

 Management of banks Text & cases Prof.(Dr). Deepak Tondon

 Information Systems for banks

Journals :

 Aladwani, A.M., “Online banking:A field study of drivers,

development challenges And expectations”, International Journal of
information Management .
 Agboola A. A ., “Electronic payment systems and Tele banking
Services in Nigeria”, Journal of Internet Banking and commerce
 Eyadat, M. and Kozak, S., “The role of Information Technology in
the profit and cost efficiency improvements of the banking sector”,
Journal of Academy of Business and Economics,
 M.G, &Gebba T.R (2013) banking adoption an examination of
TAM and Theory of Behavior, International Journal of Business
Research and Development.
 Cano M.D & Domenech-Asensi,G (2011). A Security energy-
efficient m-banking application for mobile devices. The journal software.

Websites :

https://www.bankingfinance.in/impact-of-information-
technology-in-indian-banking- industry.html

https://www.rbi.org.in

http://www.banknetindia.com/

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https://www.kotak mahindrabank.in

https://www.investopedia.com

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