Internet Banking Of State Bank Of India

Sr.

INDEX

Page No.

No.

INTRODUCTION

INTERNET BANKING

SBI PROFILE

INTERNET BANKING AT SBI

SERVICES PROVIDED BY SBI IB

SWOT ANALYSIS

RECOMMENDATIONS & SUGGESTIONS

CONCLUSION

Internet Banking Of State Bank Of India

Chapter I
Introduction to Project

The chapter describes the basic premise of the project. It also sets forward the path in
which the project was planned and is being completed.

Background

Graduated in BBA as the background, and as a student of Fourth Semester MBA with
specialization in Finance and Marketing, I was searching for a project area which
should go along with my career in Finance division of banking industry and utilizes
most of my Finance skills and knowledge. So it was narrowed down to the study of
Internet Banking of State Bank Of India.

Objectives
The main objectives of the study are:

To understand the concept of Internet banking and importance, to bank as

well as customers.

To get aware of various aspects of net banking

To build up SWOC analysis of Internet banking of SBI

To build up various solutions for drawbacks in net banking

Internet Banking Of State Bank Of India

Scope of study

The study is made taking consideration of whole State Bank of India. With reference
to experience availed at Amravati camp branch.

Need of the Study

This study is needed to find out the working of Internet Banking of SBI and its
importance to customer as well as to bank.

Data Collection
The data is to be collected from Personal Development Manager of SBI, Mr.Yadao
Mohod, and by the official website of State Bank Of India and Reserve Bank of India.

The project is divided into various chapters dealing with various issues in the project.
There are in total seven chapters.

Internet Banking Of State Bank Of India

Future scope

The study of this topic will help to get the knowledge about process of internet
banking and usefulness to banking industry. As the study contains the 360 degree
information regarding SBI and its internet banking, Hence the study will lead to new
ways to tackle the problems and the SWOT of SBI in respect of internet banking.

This was all about how the project will go ahead and the findings from it. The next
chapter deals with the Company Profiles

Internet Banking Of State Bank Of India

Chapter 2
INTERNET BANKING

The chapter describes in brief about INTERNET BANKING.

Internet:-

INTRODUCTION: There is a sea change in the media world. While most consumers see the news papers,
the same magazines and listen to the same radio programs, behind this bland public
exterior there is a seething world of innovation, acquisition, global partnership and
divorces, births and deaths all of it most readily interpreted as the inevitable result
of the technological revolution that is in the process of merging telephones,
computers, televisions in to a single all singing, all dancing magic kit that will, very
possible, change all of our lives more than we can imagine some day
There are 2 ways you can respond to this 1 is to panic, which may mean simply
curling up in a corner and wishing that it would all go away. The other is to embrace
the new religion with messianic fervor and go out to proclaim the millennium. I
welcome you to the new emerging world of the Info-High-Way, destined to redefine
the world of communications:

Internet Banking Of State Bank Of India

HISTORY: It is said that necessity is the mother of invention. And true, it is seeds of Internet
were sown in the ashes of the world war
Having bombed the cities of Hiroshima and Nagasaki, US military was forced to
provide the answer to the question What if someone bombed the USA? So for
many years after the war, most of the US military research concentrated on ways and
means to survive the nuclear holocaust. And one of the most important strategic
problems was- How would us authorities communicate with each other in the
aftermath of a nuclear attack? computers were already there. But, communication
networks were connected to each in a private fashion- in sort of chains: somewhat
like an electricity line to your home. This means that if even one chain in the middle
were blown up, the whole network would collapse.
Then in the 1960s the problem was taken by Americas foremost military think tank,
the Rand Corporation. After a lot of ideas were put up and knocked down, Paul
baron- a rand thinker hit upon an idea. What if the network was not built like a
chain but like a fish net? he said. If one strand on the fish net broke the net would
still be functional. After spending many agonizing hours over it, he came up with 11volume report for the pentagon. But, as fate would have it was rejected. By then,
young engineers were impressed by the idea and worked on it. Well before the end of
the decade, the first net was created and called ARPANET, connecting four American
research organizations- university of Utah, university of California in Los Angeles
and Santa Barbara, and Stanford research institute.

Internet Banking Of State Bank Of India

Internet as a communication medium and as a repository of information has caught
the imagination of computer users. This has fuelled an unparalleled growth in the
number of Internet users.

What Is Internet Banking?

Internet Banking System is a system that has been developed in order to help clients
with the daily day-to-day transactions. Internet banking systems means that clients
can now do banking at the leisure of their homes.
Also known as online banking, the system allows both transactional and nontransactional features.
Online banking or internet banking allows customers to conduct financial transactions
on a secure website operated by the retail or virtual bank

History
The term online banking was first started in 80s. The term online became popular in
the late '80s and referred to the use of a terminal, keyboard and TV (or monitor) to
access the banking system using a phone line. Home banking can also refer to the
use of a numeric keypad to send tones down a phone line with instructions to the
bank. Online services started in New York in 1981 when four of the citys major
banks (Citibank, Chase Manhattan, Chemical and Manufacturers Hanover)
offered home banking services using the videotext system. Because of the
commercial failure of videotex these banking services never became popular except

Internet Banking Of State Bank Of India

in France where the use of videotex (Minitel) was subsidized by the telecom provider
and the UK, where the Prestel system was used.
The UKs first home online banking services was set up by the Nottingham Building
Society (NBS) in 1983 .The system used was based on the UK's Prestel system and
used a computer, such as the BBC Micro, or keyboard (Tandata Td1400) connected
to the telephone system and television set. The system (known as 'Home link')
allowed on-line viewing of statements, bank transfers and bill payments. In order to
make bank transfers and bill payments, a written instruction giving details of the
intended recipient had to be sent to the NBS who set the details up on the Home link
system. Typical recipients were gas, electricity and telephone companies and
accounts with other banks. Details of payments to be made were input into the NBS
system by the account holder via Prestel. A cheque was then sent by NBS to the
payee and an advice giving details of the payment was sent to the account holder.
BACS was later used to transfer the payment directly.
Stanford Federal Credit Union was the first financial institution to offer online
internet banking services to all of its members in Oct, 1994. Later on it was adopted
by worldwide banks

Internet Banking Of State Bank Of India

Chapter 3
SBI Profile
The chapter describes the Company profile of State Bank Of India which was taken
for the study of project.

State bank of India:State bank of India is the nations largest and oldest bank. Tracing its roots back some
200 years to the British East India Company (and initially established as the Bank of
Calcutta in 1806), the bank operates more than 15,000 branches within India, where it
also owns majority stakes in six associate banks. State Bank of India (SBI) has more
than 80 offices in nearly 35 other countries, including multiple locations in the US,
Canada, and Nigeria. The bank has other units devoted to capital markets, fund
management, factoring and commercial services, credit cards, and brokerage services.
The Reserve Bank of India owns about 60% of State bank of India.

Some facts and figures

SBI Share in Deposits & Advances

SBI Share in Deposits & Advances

SBI
SBI
18%
18%

Internet Banking Of State Bank Of India

SBI Share in Foreign Exchange

SBI Share in Foreign Exchange

SBI
SBI
35%
35%

SBI Share in Government Transactions

SBI Share in Government Transactions

(Receipts and payments on behalf of Government of India

(Receipts and payments on behalf of Government of India
and other provincial Governments )
and other provincial Governments )

SBI
SBI
60%
60%

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Internet Banking Of State Bank Of India

Key Dates:
1806: The Bank of Calcutta is established as the first Western-type bank.
1809: The bank receives a charter from the imperial government and changes its
name to Bank of Bengal.
1840: A sister bank, Bank of Bombay, is formed.
1843: Another sister bank is formed: Bank of Madras, which, together with Bank of
Bengal and Bank of Bombay become known as the presidency banks, which had the
right to issue currency in their regions.
1861: The Presidency Banks Act takes away currency issuing privileges but offers
incentives to begin rapid expansion, and the three banks open nearly 50 branches
among them by the mid-1870s.
1876: The creation of Central Treasuries ends the expansion phase of the presidency
banks.
1921: The presidency banks are merged to form a single entity, Imperial Bank of
India.
1955: The nationalization of Imperial Bank of India results in the formation of the
State Bank of India, which then becomes a primary factor behind the country's
industrial, agricultural, and rural development.
1969: The Indian government establishes a monopoly over the banking sector.
1972: SBI begins offering merchant banking services.
1986: SBI Capital Markets is created.

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1995: SBI Commercial and International Bank Ltd. are launched as part of SBI's
stepped-up international banking operations.
1998: SBI launches credit cards in partnership with GE Capital.
2002: SBI networks 3,000 branches in a massive technology implementation.
2004: A networking effort reaches 4,000 branches.

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Internet Banking Of State Bank Of India

Chapter 4
Internet banking at State Bank of India

The chapter describes the facts about working of internet banking in state
bank of India.

Where SBI was?

In early 1990s more than 7000 branches were using traditional manual
procedures.

These manual procedures were inherited from the Imperial Bank.

Traditional procedures were evolved over decades

Very few changes were brought in those procedures as per the need of time.

In that time, mainframe or mini computers were used for MIS,

RECONCILLATION & FUND SETTLEMENT PROCESS, or we can say
that for backhand operations purpose.

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Internet Banking Of State Bank Of India

Changes brought in Information Technology by SBI:-

In the next decade internet facility was provided for individuals

All SBI branches were connected and ATMS were launch

2001 - KMPG appointed consultant for preparing IT Plan for the Bank.

Later on Core banking proposed by the IT consultancy company.

2002 All branches computerized but on decentralized systems, there the

initiative of core banking took place

2008- more than 6500 branches (95% of business) on Core Banking Solution
(CBS)

Internet Banking facility for Corporate customers were also launched in early
2008

More Interfaces developed with e-Commerce & other sites through alternate
channels like ATM & Online Banking

All Foreign Offices were brought on Centralized Solution

Large network is playing the role of backbone for connectivity across the
country

Multiple Service Providers are providing the links BSNL, MTNL, Reliance,
Tata & reliance which are making the system errorless and provide high
speed.

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Internet Banking Of State Bank Of India

Multiple Technologies to support the networking infrastructure Leased lines,

Dial-up, CDMA & VSAT

CBS - Core Banking System Components

Branches

CBS - Core Banking System

Components Datacenter
Application Developers

Desktops,
Branch
Servers

Alternative
Channels

Core-Banking
Application
OS, Database

WAN,
Internet

Internet-Banking
ATM

Branch User/Admins

Network Administrators
ELITEX-2008

System Administrators
8

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Internet Banking Of State Bank Of India

Chapter 5
Services provided by SBI internet banking

Chapter deals with the information related to various services an products of SBI
internet banking

Online SBI (www.onlinesbi.com)

State Bank of India is Indias largest bank with a branch network of over 11000
branches and 6 associate banks located even in the remotest parts of India. State
Bank of India (SBI) offers a wide range of banking products and services to
corporate and retail customers.

OnlineSBI is the Internet banking portal for State Bank of India. The portal provides
anywhere, anytime, online access to accounts for State Banks Retail and Corporate
customers. The application is developed using the latest cutting edge technology and
tools. The infrastructure supports unified, secure access to banking services for
accounts in over 11,000 branches across India.

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RETAIL BANKING:-

The Retail banking application is an integration of several functional areas, and

enables customers to:

Issue Demand Drafts online

Transfer funds to own and third party accounts

Credit beneficiary accounts using the VISA Money Transfer, RTGS/NEFT

feature

Generate account statements

Setup Standing Instructions

Configure profile settings

Use eTax for online tax payment

Use ePay for automatic bill payments

Interface with merchants for railway and airline reservations

Avail DEMAT and IPO services

CORPORATE BANKING:-

The OnlineSBI corporate banking application provides features to administer and

manage corporate accounts online. The corporate module provides roles such as

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Regulator, Admin, Uploader, Transaction Maker, Authorizer, and Auditor. These
roles have access to the following functions:

Manage users, define rights and transaction rules on corporate accounts

Access accounts in several branches with a single sign-on mechanism

Upload files to make bulk transactions to third parties, supplier, vendor and
tax collection authorities.

Use online transactional features such as fund transfer to own accounts, third
party payments, and draft issues

Make bill payments over the Internet.

Authorize, modify, reschedule and cancel transactions, based on rights

assigned to the user

Generate account statement

Enquire on transaction details or current balance

Value added services:

Tax payments to central and state governments through site to site integration.

Supply Chain Finance( e-VFS- Electronic Vendor Finance Scheme)

Direct Debit Facility

E Collection Facilities for:

Core Banking Transactions

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Internet Bank transactions for incoming RTGS/NEFT Transactions

Internet banking transactions for SBI and associate banks

Debit facility where suppliers can directly debit their customers account
through internet banking

PRODUCTS AND SERVICES:

E-Ticketing

SBI E-Tax

Bill Payment

RTGS/NEFT

E-Payment

Fund Transfer

Third Party Transfer

Demand Draft

Cheque Book Request

Account Opening Request

Account Statement

Transaction Enquiry

Demat Account Statement

Donation

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Internet Banking Of State Bank Of India

1)

E-TICKETING :-

You can book your railway, air and bus tickets online through OnlineSBI.
To book your train ticket, just log on to irctc.co.in and create an ID there at if you do
not have one. Submit your travel plan and book the ticket(s)-either
i-ticket (where the delivery of tickets will be made at your address) or
E-tickets (wherein after successful payment transactions, an e-ticket is

generated which can be printed any time. For an e-ticket, the details of photo
identity card will required to be filled in)

And select State Bank of India in the payment options. You will be redirected to
Internet Banking site of SBI (www.onlinesbi.com). After submitting the respective ID
and password, you can select your account. After a successful debit, Railways will
generate the ticket. E-ticket can be printed by you whereas the i-ticket will be
dispatched by IRCTC at the given address. Service charges @ Rs.10/- per transaction
shall be levied in addition to the cost of the ticket. Cancellation of E-ticket can be
done by logging on to IRCTC's site; refund amount will be credited to your account
directly within 2-3 days. For cancellation of i-ticket, you shall be required to submit
your ticket at a computerized counter of Railways and on cancellation; the amount

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shall be credited back to your account.

You can also book your Air ticket through the e-ticketing feature. Logon to Indian
Airlines website to make a payment for an e-ticket through State Bank of India, you
need to select SBI as the payment option. The payment request will be redirected to
Internet Banking site. The request may be processed based on values sent from the
airlines website. Once a transaction is processed, an appropriate response will be sent
to airlines site to update the status of the transaction. You can print the E-ticket
immediately.

To book bus tickets to destinations in Karnataka, log on to the KSRTC website.

Provide details about the start and end points of your journey, date of journey and
number of tickets. Verify availability of seats on the selected date and confirm the
transaction. Select OnlineSBI to make the payment. Provide your credentials and
select the SBI account that will be debited for the payment. You are provided a
KSRTC reference number for your e-Ticket.

2)

SBI E-TAX:-

You can pay your taxes online through SBI E-Tax. This facility enables you to pay
TDS, Income tax, Indirect tax, Corporation tax, Wealth tax, Estate Duty and Fringe
Benefits tax. Click the e-Tax link in the home page. You are displayed a page with

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two links Direct Tax and Indirect Tax.

Click the Direct Tax link. You will be redirected to the NSDL site where you can
select an online challan based on the tax you wish to pay. Provide the PAN, name and
address, assessment year, nature of payment and bank name. On selecting the bank
name as SBI and submitting the form, you will be redirected to the Internet Banking
site. After submitting the respective ID and password, you can select your account for
making payment of taxes. After payment is successful you can print the E-Receipt for
the payment. The E-receipt can be printed at a later date also and the same can be
retrieved from: Enquiries > Find Transactions > Status Enquiries > Click on the
respective transaction to print the tax receipt.

The Indirect Tax link is used to make Central Excise and Service Tax payments to
Central Board of Excise and Customs. The online payment feature facilitates anytime,
anywhere payment and an instant E-Receipt is generated once the transaction is
complete. The Indirect Tax payment facility is available to Registered Central
Excise/Service Tax Assessee who possesses the 15 digit PAN based Assessee Code.
You can make CBEC payments using the Indirect Taxes link available in the
Payments/Transfers tab. You need to provide your assessee code as registered with
CBEC and select the minor heads towards which you intend to pay tax. Select the
appropriate tax type and enter the tax amount. Select an account for debiting the total
tax amount. You can use any of your transaction accounts to make the payment. If a

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payment is successful, CBEC provides a link to generate an E-Receipt for the
payment.

Internet banking customers can pay tax through site to site integration. For
government agencies, which are not Internet-enabled, OnlineSBI offers the
Government Tax Payment facility. This facility is available as a post login feature in
the retail and corporate banking sites of the Online SBI portal.
Please note that the cut-off time for OLTAS and CBEC payment is 8 P.M. IST. Any
transactions created after the cut off time will be processed after 7 A.M. on the
following day.

3)

Bill Payment :-

A simple and convenient service for viewing and paying your bills online.
No more late payments
No more queues
No more hassles of depositing cheques

Using the bill payment you can 'view and Pay various bills online, directly from your
SBI account. You can pay telephone, electricity, insurance, credit cards and other
bills from the comfort of your house or office, 24 hours a day, 365 days a year.

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Simply logon to http://www.onlinesbi.com/ with your credentials and register the
biller to which you want to pay, with all the bill details. Once the bill is uploaded by
the biller, you can make payment online. You can see 'how do I' to learn the steps for
using the facility.

You can also set up Auto Pay instructions with an upper limit to ensure that your bills
are paid automatically whenever they are due. The upper limit ensures that only bills
within the specified limit are paid automatically, thereby providing you complete
control over these payments.

The e-PAY service is available in various cities across the country and you can now
make payments to several billers in your region.

4)

RTGS/NEFT :-

You can transfer money from your State Bank account to accounts in other
banks using the RTGS/NEFT service. The RTGS system facilitates transfer of
funds from accounts in one bank to another on a "real time" and on "gross
settlement" basis. This system is the fastest possible interbank money transfer
facility available through secure banking channels in India. RTGS transaction
requests will be sent to RBI immediately during working hours post working
hours requests are registered and sent to RBI on next working day. You can
also schedule a transaction for a future date. You can transfer an amount of

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Rs.1 lac and above using RTGS system.
National Electronic Funds Transfer (NEFT) facilitates transfer of funds to the
credit account with the other participating bank. RBI acts as the service
provider and transfers the credit to the other bank's account.

NEFT transactions are settled in batches based on the following timings

1. 6 settlements on weekdays - at 09:00, 11:00, 12:00, 13:00, 15:00 and 17:00

hrs.
2. 3 settlements on Saturdays - at 09:00, 11:00 and 12:00 hrs.

Please note that all the above timings are based on Indian Standard Time (IST) only.

In order to transfer the funds to an account with other bank, kindly ensure that the
bank branch of the beneficiary is covered under the RGTS/NEFT payment system. It
is recommended that you choose the Bank/ Branch from the drop down option
provided under the link "Add Interbank beneficiary".
Please exercise care to provide the correct account number and name of the
beneficiary.

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5)

E-Payment :-

You can pay your insurance premium, mobile phone bills and also you can
purchase mutual fund units by coming from the billers website and selecting
state bank of India in the payment option.
LIC PREMIUM: For paying premium of LIC policy logon to
www.licindia.com and register your policy details. When the premium is due
select State Bank of India in the make payment option.

SBI Mutual FUND: You can invest in the SBI Mutual Fund schemes online.
Logon to www.sbimf.com and select the scheme in which you want to make
investment in the payment option select State Bank of India.

CCAVENUES: Enjoy shopping at the CCAvenue Shopping Mall and

purchase from a wide variety of products and services through CCAvenue
Certified Vendors. Make payments for your purchases using your Internet
enabled SBI accounts.

6)

Fund Transfer :-

The Funds Transfer facility enables you to transfer funds within your accounts
in the same branch or other branches. You can transfer aggregating Rs.1 lakh

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per day to own accounts in the same branch and other branches. To make a
funds transfer, you should be an active Internet Banking user with transaction
rights. Funds transfer to PPF account is restricted to the same branch.

Just log on to retail section of the Internet Banking site with your credentials
and select the Funds Transfer link under Payments/Transfers tab. You can see
all your online debit and credit accounts. Select the debit account from which
you wish to transfer funds and the credit account into which the amount is to
be credited. Enter the amount and remarks. The remarks will be displayed in
your accounts statement for this transaction. You will be displayed the last
five funds transfer operations on your accounts. On confirming the
transaction, you will be displayed a confirmation page with the details of the
transaction and the option to submit or cancel the funds transfer request. A
reference number will be generated for your record.

7)

Third Party Transfer :-

You can transfer funds to your trusted third parties by adding them as third
party accounts. The beneficiary account should be any branch SBI. Transfer is
instant. You can do any number of Transactions in a day for amount
aggregating Rs.1lakh.

To transfer funds to third party having account in SBI, you need to add and

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approve a third party, you need to register your mobile number in personal
details link under profile section. You will receive a One Time SMS password
on your mobile phone to approve a third party. If you do not have a mobile
number, third party approval will be handled by your branch. Only after
approval of third party, you will be able to transfer funds to the third party.
You can set limits for third party transactions made from your accounts or
even set limits for individual third parties.

8)

Demand Draft :-

The Internet Banking application enables you to register demand drafts requests
online. You can get a demand draft from any of your Accounts (Savings Bank,
Current Account, Cash Credit or Overdraft). You can set limits for demand drafts
issued from your accounts or use the bank specified limit for demand drafts.
You can opt to collect the draft in person at your branch, quoting a reference to the
transaction. A printed advice can also be obtained from the site for your record.

Alternatively, you may request the branch to courier it to your registered address, and
the courier charges will be recovered from you.

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If you have any queries, kindly approach your branch, quoting the reference number
generated for the request.

9)

Cheque Book Request :-

You can request for a cheque book online. Cheque book can be requested for
any of your Savings, Current, Cash Credit, and Over Draft accounts. You can
opt for cheque books with 25, 50 or 100 cheque leaves. You can either collect
it from branch or request your branch to send it by post or courier. You can
opt to get the cheque book delivered at your registered address or you can
provide an alternate address. Cheque books will be dispatched within 3
working days from the date of request.

Just log on to retail section of the Internet Banking site with your credentials
and select the Cheque Book link under Requests tab. You can view all your
transaction accounts. Select the account for which you require a cheque book;
enter the number of cheque leaves required and the mode of delivery. Then,
submit the same.

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10) Account Opening Request:-

OnlineSBI enables you to open a new account online. You can apply for a
new account only in branches where you already have accounts. You should
have an INB-enabled account with transaction right in the branch. Funds in an
existing account are used to open the new account. You can open Savings,
Current, Term Deposit and Recurring Deposit accounts of Residents, NRO
and NRE types.

Just log on to retail section of the Internet Banking site with your credentials
and select the New Account link under Requests tab. You can see all types of
accounts. Select the account and account type you wish to open and submit
the same. Then, you need to select the branch and enter the initial amount to
open the account. You can select any of your accounts for debiting the initial
amount. Then, submit the transaction. Your new account opening request will
be processed by the branch.

11) Account Statement :-

The Internet Banking application can generate an online, downloadable

account statement for any of your accounts for any date range and for any
account mapped to your username. The statement includes the transaction

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details, opening, closing and accumulated balance in the account.

You can generate the online account statement for any date range or for any
month and year. The account statement can be viewed online, printed or
downloaded as an Excel or PDF file. You also have the option to select the
number of records displayed in each page of the statement. The options are
25, 50, 75, 100 and ALL.

12) Transaction Enquiry :-

OnlineSBI provides features to enquire status of online transactions. You can view
and verify transaction details and the current status of transactions. Your VISA
transactions can also be viewed separately. Just log on to retail section of the Internet
Banking site with your credentials and select the Status Enquiry link under the
Enquiries tab. You will be displayed all online transactions you have performed. To
view details of individual transactions, you need to click the Transaction Reference
number link. You are displayed the debit and credit account details, transaction
amount, narration and transaction status.

13) Demat Account Statement :-

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OnlineSBI enables you to view Demat account statement and maintain such
accounts. The bank acts as your depository participant. In the third party site, you can
mark a lien on your Demat accounts and use the funds to trade on stock using funds
in your SBI savings account.

You can view Demat account details, and generate the following statements:
statement of holding, statement of transactions, statement of billing.

14) Donation:-

You can make donation to religious and charitable institution by using Internet
Banking of SBI. Simply log on to http://www.onlinesbi.com/ with your credentials
and go to Payment and transfer and click on make donation link. After selecting the
debit account select the religious/charitable institution whom you want to offer
donation. After successful payment you can print an E-receipt for the donation made.

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Chapter 6
SWOT analysis of SBIs internet banking

The chapter describes Strengths, Weaknesses, opportunities, threats of State

Bank of India.

Strengths:

Greater reach to customers

Quicker time to market

Ability to introduce new products and services quickly and successfully

Ability to understand its customers needs

Customers are given access to information easily across any location

Greater customer loyalty

Easy online application for all accounts, including personal loans and
mortgage

24 hours account access

Quality customer service with personal attention

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Weaknesses:-

Lack of awareness among the existing customers regarding internet banking

Obsolesce of technology take place very soon specially in terms of security on

internet.

Procedure for applying for id and password for using services related to
internet banking takes time.

Lack of knowledge is found regarding internet banking in employees of SBI

Implementation of newer technology is little bit complicated

Employees needs training to obtain knowledge regarding I-banking

Opportunities:-

Approximately 95% of customers are not using internet banking.

Core competency can be achieved in terms of banking if focus is made on

awareness of internet banking

Can become 1st virtual bank of India.

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Concentration of various services should be made using internet banking

THREATS:-

Maintaining Business Edge over competitors in the context of sameness in IT

infrastructure

Multiple vendor support is necessary for working of highly complex

technology

Maintaining secured IT infrastructure for business operations

Alternative must be there in case of failure of system

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Chapter 7
Recommendations and Suggestions

The chapter gives recommendations and suggestions to SBI.

Recommendations & Suggestions:

Training and awareness among employees:-

It is recommended that State Bank of India should conduct various training

programmes for the employees, so that they will get aware with the terms of
internet banking. After such programmes they can create awareness amongst the
consumers.

Exchange of information on threats and vulnerabilities at appropriate

forums:-

There should be an open end discussion on the threats and vulnerabilities coming
across the functioning of internet banking work by the employees in the various
official forums and meets.

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Build an optimal operating model by understanding which activities to retain

collaborate and outsource:-

There should be clear sight of operations which needs to outsource to other

companies, this will lead to ease in work for employees. Outsourcing operations
like, cyber security department, building IT structure on internet.

Bank should Create and sustain customer, investor and regulator confidence
by adopting international accounting standards :-

Adopting international standards adds some more star to the glory of any
company, SBI should impose such standards when it comes to internet banking or
virtual banking, this will enhance the goodwill of SBI among regulator, customers
and invertors.

Bank should anticipate and get prepared for regulatory changes:Laws regarding IT or cyber laws get change as per the need. SBI should anticipate
such kind of changes and get loaded with various plans and actions.

Focus on identifying core competence:SBI possess some unique characteristics or positive points in it and with the help
of them it can become a leader in market. Bank should identify such points and
concentrate to flourish them more. This can be done with the help of internet
banking, as internet banking of SBI is getting largely accepted by customers.

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Increasing usage of mobile phones is going to revolutionize the banking

culture in near future:-

Mobile banking is also getting popular in the segment of internet banking thus
this can add some more steps to progress for SBI. Bank is into the mobile banking
but it is providing limited features.

More stress should be given on security concern on internet:There are some people who are into unethical practices of hacking of accounts of
customers. This is nothing but the breach in the security of the SBI on internet.
There should be some measures in order to prevent such practices. IT structure
should be unbreakable.

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Chapter 8
Conclusion

The chapter gives conclusion for the project

Conclusion:-

Studying the project we came to know that Internet banking is clearly the way
forward for the State Bank of India. It provides comfort to customers at the same time
it provides cost cutting to SBI by eliminating physical documentation. Internet
banking saves time of bank as well as those of customers.
Study states that internet banking provides greater reach to customers. Feedback
can be obtained easily as internet is virtual in nature. Customer loyalty can be gain.
Personal attention can be given by bank to customer also quality service can be
served.
Bank should know that No system is perfect, however a system of such a type will
need to be very secure. This is a system which holds account details and customers
wealth. If such a system was not trusted and not reliable, then SBI would face serious
laws and would lose business.

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After studying the SWOC analysis, we came to know various strengths of SBI such
as quality customer service, greater reach, customer loyalty, easy access to
information, 24 hours access, easy online applications etc. SBI should put efforts to
multiply the number of strengths. In terms of weakness I come to know some of the
major weaknesses they are lack of awareness of internet banking among the
customers, obsolesce of technology related to security, complicated procedures of
availing internet banking facilities, lack of knowledge among the employees of SBI.
SBI should concentrate on the weaknesses and reduce them to zero.
In the third segment of SWOT analysis of internet banking we dealt with
opportunities like 95 % market of internet market is untapped, SBIs path to become
first virtual bank. By encashing such opportunities bank can become the leader in
banking sector of India. In the last segment I come to know about various challenges
which are in front of SBI, like sameness in IT infrastructure within various banks,
need of various vendor supports for complex technology, maintaining secured IT
infrastructure, alternative mechanism in case of failure of present security system.
The company can take the advantage of the reputation it has created in the market for
itself and become more competitive
The recommendations and suggestions given, if adopted will improve the position of
the company substantially and optimal profitability coupled with better service and
satisfactions for investors may be achieved.

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Bibliography

Books :

SBI Training guide for internet banking

Wibliography:-

www.statebankofindia.com

www.onlinesbi.com

www.weikipedia.com

www.google.com

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