Introduction (1) ME ppt

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Introduction:-

Indian banking today is witnessing drastic changes. The liberalization of the financial sector and banking sector reforms have exposed the Indian banks to a new economic environment that is characterized by increased competition and new regulatory requirement. As a result, there is a transformation in every sphere of the banks in India, especially in governance, nature of business, style of functioning and delivery mechanisms. Indian banking is one of the healthiest performers in the world banking industry seeing tremendous competitiveness, growth, efficiency, profitability, productivity and soundness especially from last decades. Various aspects of the Indian commercial banking sectors have been highlighted in recent studies. Many of them used profitability and productivity index to find the financial performance of the banking sectors by considering public and private sector banks.

This study analyses the various aspects of financial performance of the Indian commercial banking sector by considering Trend Analysis, Data Envelopment Analysis (DEA) is used to analyse the efficiency, Mann Whitney U test for ranking the banks based on their technological developments, Multivariate Analysis, Regression and ANOVA (Analysis of Variance) in the estimation of relationships. The E-banking Technology Index (ETI) is used to analyse the financial performance of the banks.

Technological Development in Indian Banking Sector:-

Developments in the field of E-banking strongly support the growth and inclusiveness of the banking sectors by facilitating inclusive economic growth. E-banking improves the front end operations with back end operations and helps in bringing down the transaction cost for the customer. Important events in India:-

1. Arrival of card based payments – Debit, Credit card late 1980s and 1990s.2. Introduction of Electronic Clearing Services (ECS) in late 1990s.3. Introduction of Electronic Fund Transfer (EFT) in early 2000s.4. Introduction of RTGS in March 2006.5. Introduction of National Electronic Fund Transfer (NEFT) as a replacement of

Electronic Fund Transfer / special electronic fund transfer in 2005/06.6. Cheque Truncation System (CTS) in 2007.

The different types of E-banking services provided by the banks:-1. Computerization of branches2. Automated Teller Machines3. Internet Banking4. Mobile Banking5. Tele Banking6. Electronic Payment System includes

Electronic clearing serviceDebit clearingCredit clearing

o National Electronic Fund Transfero Real Time Gross Settlemento Cheque Truncation System etc....

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The technological development in the banking sector began with the use of Advanced Ledger Posting Machine (ALPM) in the late 1980s and now a days bank are started using core banking solutions for providing better customer services. Over the three decades several studies have been conducted both at the industry and academic level to examine the impact of E-banking on financial performance (profitability and overall efficiency) of the banks.

According to N Chandrashekaran, (2009) “It is important for the banks to adapt new technologies that can brings down the cost of transactions and at the same time bring business continuity. In the world of banking and finance nothing stands still.

Ballabh (2001) analysed challenges in the post-banking sector reforms. With globalization and changes in technology, financial markets, world over, have become closely integrated. For the survival of the banks, they should adopt new policies/strategies according to the changing environment.

Laxman, et. al (2008) examined that banking industry is undergoing a paradigm shift in scope, content, structure, functions and governance. The information and communication technology revolution is radically and perceptibly changing the operational environment of the banks.

Madhavankutty (2007) concludes the banking system in India has attained enough maturity and is ready to address prudential management practices as comprehensively as possible, which an integral part of policy is making. Banking in India is poised to enter yet another phase of reforms once the door opens further to foreign players in 2009. This requires further improvement in technology management, human resource management and the ability to foresee rapid changes in the financial landscape and adopt quickly. At present, there is a huge hiatus between the top management earnings of state owned banks and private, as well as foreign banks. Banks have to lay down sound risk management strategies and internal capital adequacy assessment committees to ensure that they do not diverge from the prudential requirements.

Nair (2006) discusses the future challenges of technology in banking. The author also point out how IT posses a bright future in rural banking, but is neglected as it is traditionally considered unviable in the rural segment. A successful bank has to be nimble and agile enough to respond to the new market paradigm and ineffectively controlling risks. Innovation will be the key extending the banking services to the untapped vast potential at the bottom of the pyramid.

Shroff (2007) gives a summary of how Indian banking system has evolved over the year. ThePaper discusses some issues face by these systems. The author also gives examples of comparable banking system for other countries and the lesson learnt. The application of technology and product innovations is bringing about structure change in the Indian bankingsystem.

Subbaroo (2007) concludes the Indian banking system has undergone transformation itself from domestic banking to international banking. However, the system requires a combination of new technologies, well regulated risk and credit appraisal, treasury management, productDiversification, internal control, external regulations and professional as well as skilled human resource to achieve the heights of the international excellence to play its role critically in meeting the global challenge.

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Uppal and Kaur (2007) analysis the efficiency of all the bank groups in the post banking sector reforms era. Time period of study is related to second post banking sector reforms (1999-2000 to 2004-05). The paper concludes that the efficiency of all the bank groups has increased in the second post banking sector reforms period but these banking sector reforms are more beneficial for new private sector banks and foreign banks.

But few addressed it as “IT productivity Paradox” where paradox indicates its negative correlation between Information technology investment and productivity.

Morrison and Berndt (1990) studied investment on the additional IT contributed to negative financial productivity. It is pointed out that estimated marginal benefits of investment in IT are less than the estimated margin cost.

Peffers and mauer, Dos Santos (1993) studied statistical correlation between IT spending and performance measures such as profitability or stock’s value. It is found that there is an insignificant correlation between IT spending and profitability measures, implying thereby that IT spending unproductive.

Loveman (1994), Barua et al (1991) says that there is no correlation between IT investment and financial productivity.

Jordon and Katz (1999) says that even the most successful banks offering internet banking were able to serve only a relatively small share of their customer base with IT channels. It was difficult to determine whether E-banking has a significant impact on banking performance.

Lichtenberg (1995) found that there is a significant contribution from IT toward financial growth.

Brynjolfsson and Hitt (1996) cautioned that these findings do not account for the economic theory of equilibrium which implies that increased IT spending does not imply increased profitability.

Gotlieb and Denny (1993) studied which deals with the impact of IT on banking productivity. Computerization is one of the factors which improve the efficiency of the banking transactions. They concluded that higher performance levels have been achieved without corresponding increases in the number of employees. It has been possible for public sector banks and old private sector banks to improve their productivity and efficiency by using IT.

Dhiraj Sharma (2012) found that by using the inter group comparison of the financial performance of Indian commercial banks based on the usage of technology. The study is divided into two parts low-technology era and high-technology era. The performance of almost all the banks under study has tremendously improved in the high technology induction period. It is found that the correlation between technology induction and financial productivity is negative though statistically insignificant and low.

Committee Reports:-

Information Technology and the Communication Networking Systems have revolutionized the functioning of banks and other financial institutions all over the world. Reserve bank of India has played an important role in implementation of information technology in banking

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sector. Various researchers have also contributed in this regard. In addition to the work done by various scholars in the area of Information Technology and Banking organization, RBI had appointed various committees to work in this area. The reports of various committees are briefly summarized below:

1) Dr. C. Rangarajan Committee [1983] Dr. Rangarajan committee had drawn up in 1983-84 the first blue print for computerisation and mechanisation in banking industry and looked into modalities of drawing up a phased plan for mechanisation for the banking industry covering period 1985-89. The committee in its report in 1984 recommended introduction of computerisation and mechanisation at branch, regional office / zonal office and head office levels of banks. In 1988 another committee was constituted under the chairmanship of Dr. Rangarajan for making plans for computerisation for the next five years from 1990-94 for the banking industry. It identified the purpose of computerisation as improvement in customer service, decision making, housekeeping and profitability. The committee observed that banking is a service industry and improved efficiency will lead to a faster rate of growth in output and help to expand employment all around. The work force in the banking industry must, therefore, look upon computerisation as a means to improve customer service and must welcome it in that spirit.

2) W.S. Saraf Committee [1994] In 1994, the Governor, Reserve bank of India had appointed a committee on technology issues under the chairmanship of W. S. Saraf. The committee looked into technological issues related to the payment system and to make recommendations for widening the use of modern technology in the banking industry. The Saraf committee recommended to set up institutions for electronic funds transfer system in India. The committee also reviewed the telecommunication system like use of BANKNET and optimum utilization of SWIFT by the banks in India.

3) Shere Committee [1995] In 1995, RBI formed a committee under the chairmanship of K. S. Shere, to study all aspects relating to electronic funds transfer and propose appropriate legislation. The Shere committee had recommended framing of RBI (EFT system) regulations under section 58 of the Reserve bank of India Act 1934 (RBI Act.), amendments to the RBI act and to the bankers book evidence act, 1891 as short term measures and enacting of a few new acts such as EFT act, the computer misuse and data protection act etc. as long term measures.

4) Narasimhan Committee [1998] The recommendations of the NC-I in 1991 provided the blueprint for the first generation reforms of the financial sector. The period 1992-97 witnessed the laying of foundations for reforms in the banking system. Cataclysmic changes were taking place in the world economy, coinciding with the movement towards global integration of financial services. Against such backdrop, the committee NC-II, appointed for the said purpose generated its report in 1998, provided the roadmap for the second-generation reform process In order to examine the various issues related to the technology up gradation in the banking sector, the Reserve Bank of India appointed Narasimhan committee in September 1998. The committee consists of representatives from the Government, Reserve Bank of India, banks and academic institutions associated with the information technology. The committee dealt with the issues on technology up gradation and observed that the most of the technology that could be considered suitable for India in some form or the other has been introduced in some diluted form or as a pilot project,

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but the desired success has not been achieved because of the reasons inter-alia lack of clarity and certainty on legal issues. The committee also suggested implementation of the necessary legislative changes, keeping in the view the recommendations of Shere committee. The need for addressing the following issues was also emphasised:-

o Encryption on Public Switching Telephone Network (PSTN) lineso Admission of electronic files as evidenceo Treating Electronic Funds Transfers on par with crossed cheques / drafts for purposes

of Income Tax etco Electronic Record keepingo Provide data protectiono Implementation of digital signatureso Clarification on payment finality in case of EFT

Taking into consideration the recommendations by various committees appointed by RBIAnd guidelines of RBI, banks have started using IT to automate banking transactions and Processes.

The NC – II examined the second generation of reforms in terms of three broad interrelated issues:

(i) Action that should be taken to strengthen the foundation of the banking system.(ii) Strengthening procedures, upgrading technology and HRD and(iii) Structural changes in the system.

These cover the aspects of banking policy, institutional, supervisory and legislative documents. The major recommendations of the committee were strengthening banking system, systems and methods of banking, structural issues, integration of financial markets, rural and small scale industrial credit and regulation and supervision. E-Banking:- E-banking is the term that signifies and encompasses the entire sphere of technology initiatives that have taken place in the banking industry. E-banking is a generic term making use of electronic channels through telephone, mobile phone, internet etc., for delivery of banking services and products. The concept and scope of E-banking is still in the transitional stage. E-banking has broken the barriers of branch banking. The second banking sector reforms gave much importance to the modernization and technology up gradation. The IT Act, 1999 started the speedy process of e-banking. Evolution of E-banking E-banking began in UK and USA in 1920s. It became prominently popular during 1960s through electronic funds transfers and credit cards. The concept of web-based banking came into existence in Europe and USA in the beginning of 1980s. It has been estimated that around 40 percent of banking transaction would be done through net.

E-Banking In India In India E-banking is of fairly recent origin. The traditional approach for banking has been through branch banking only in the early 1990s there has been start of non-branch banking services. The good old manual systems on which Indian banking depended upon for centuries seem to have no place today. The credit of launching internet banking in India goes to ICICI bank, Citi bank and HDFC bank followed with internet banking services in 1999. Several initiatives have been taken by government of India as well as the RBI to facilitate the development of E-banking in India. The government of India enacted the IT act, 2000 with effect from October 17, 2000 which provided legal recognition to electronic transactions and other means of electronic commerce. The reserve bank is monitoring and reviewing the legal and other requirements of E-banking on a continuous basis to ensure that E-banking would

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develop on sound lines and E-banking related challenges would not pose a threat to financial stability. A high level committee under chairmanship of Dr. K.C Chakrabarty and members from IIT, IIM, IDRBT Banks and Reserve bank of India had prepared the “IT VISION DOCUMENT – 2011-17” for the reserve bank and banks which provides an indicative road map for enhanced usage of IT in the banking sector.

Implications

The banks were quick in responding to the changes in the industry; especially the new generation banks. The continuance of the trend has re-defined and re-engineered the banking operations as whole with more customization through leveraging technology. As technology makes banking convenient, customers can access banking services and do banking transactions any time and from any ware. The importance of physical branches is going down. Thus the changes have the following implications

Anywhere Anytime Anyplace Banking Timeless and Placeless Banking Banking at Convenience Dismantling of Physical Structure Goodbye to Traditional Instruments and Invitation to New Instruments Disappearance of Conventional Risk and Arrival of New Risks Leading to Currency-less Monetary system.

Need For the Study:-1. To know the impact of E-banking on financial performance of the Indian commercial

banks.2. In literature survey it is found that the large number of studies on financial performance

of Indian commercial banks have been carried out individually and or relating few parameters of each other. However, there are no holistic studies done by considering E-banking technology on public and private sector banks by applying Data Envelopment Analysis (DEA) to analyse the performance.

3. There are more studies relating financial performance at the time of liberalization, financial performance of pre and post mergers of the banks, but very few studies have been carried out to know the performance of E-banking technology.

4. The main tenet of this study lies in understanding the impact of E-banking i.e., before and after the implementation of E-Banking {pre E-banking (1996-97 to 2000-01) and post E-banking period (2001-02 to 2012-2013)}.

5. There is a need to carry out a holistic study by using ratio analysis and Data Envelopment analysis, to study the impact of E-banking on financial performance.

6.Literature Survey:-The literature review examines the concept of E-banking in two periods that is Post E-banking and Pre E-banking period. To know the effect of E-banking in these two periods. The purpose of the review of literature is to synthesize and summarize the key findings from many of these studies and show that there is a change in the banking technology in these periods. From this reviews, it is found that there is a drastically change in the banking technology and the financial performance of the banks have improved. The reviews are divided into six parts:-

1. Studies related to Banks

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2. Studies related to Customers3. Studies related to Technology4. Studies related to Financial Performance

Studies Related to Banks:-Dannenberg and Kellner (1998), in their study, overviewed the opportunities for effective utilization of the Internet with regard to the banking industry. The authors evaluated that appropriate application of today’s cutting edge technology could ensure the success of banks in the competitive market. They evaluated the services of banks via internet as websites provide sophisticated line of products and services at low price. The authors analyzed that transactions via internet reduce the risk of data loss to customers, chance to cut down expenses, higher flexibility for bank employees, re-shaping the banks’ image into an innovative and technologically leading institutes, etc. The researchers found that banks could move one step further by entering into a strategic alliance with internet service provider. So, the bank of tomorrow stands to be feasible with today’s technology.

Daniel (1999), in his research paper, described e-banking as the newest delivery channel offered by the retail banks in many developing countries. The objective of the study was to analyze the current provision of electronic services of major retail banking organizations in the UK. The researcher through a questionnaire found that 25% banks in the UK were those already providing e-banking services, 50% banks were testing or developing such services while 25% were not providing any e-banking services. Electronic channels, PC, digital TV and all these provide greater accessibility and services at lower price. To make services more adaptable, customers should be provided maximum choice and convenience. Restriction and limitation within organization to operate the services and its market share or strength were viewed as important to decide and operate the e-banking services.

Sathye (1999), in his research paper, explored the factors affecting the adoption of internet banking by Australian customers. The author stated that internet and other virtual banking had significantly lower the cost structure than traditional delivery channels. So, the banks should encourage customers to use internet for banking transactions. The author also emphasized that for adoption of internet banking, it was necessary that the banks offering this service made the consumers aware about the availability of such a product and explain how it adds value to the other products. The analysis of the study showed that security concerns and lack of awareness stand out as the reasons for non-adoption of internet banking by Australian customers. However, internet should be considered as a part of overall customers’ service and distribution strategy. These measures could help in rapid migration of customers to internet banking resulting in considerable saving of operating costs of banks.

Kamesam (2001) studied the changes that took place in the Indian banking industry which emphasized on technological advancements and profitability in banks. Technology has helped in centralized data storage with decentralized processing which has helped in reduction of costs and NPAs. Further, emergence of services such as electronic data interchange (EDI), usage of smart cards, RTGS, e-commerce; all resulted in increasing the level of profitability and productivity of banks. The author concluded that in order to reduce crimes, security audit should be done which will be helpful in improving customer service, increase systematic efficiency and thus increased productivity and profitability.

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Unninthan (2001) described the impact of e-banking adaptation on Australian Indian banking sectors with the help of qualitative and quantitative analysis. The researcher found that Australia had a strong platform for e-banking growth with 37.7 percent of population willing to engage in e-banking mostly in urban areas due to literate young working population with discretionary income. However, India by comparison was played by weak infrastructure, low PC penetration and consumer reluctance in rural sector. But the professionals are compelling the government and bureaucracy in the country to support and develop new initiatives at a faster speed of internet banking. However, in both the countries, e-banking was a successful strategic weapon for banks to remain profitable in a volatile and competitive market place.

Yu and Boon (2003), in their study, examined the implications of technological advances in the banking sector in Malaysia. An empirical study was made through a structured questionnaire. The results highlighted that electronic channels provide alternatives for faster delivery of banking services to the customers. They described that prior to adoption of electronic channels like ATMs, kiosks, internet banking; investment costs must be identified to ensure a more cost-effective and efficient execution of e-channel services. The authors analyzed the commercial banks in Malaysia via frequency analysis and factor analysis. The results of the study indicated that banks’ operation management was the main factor affecting the success of ATMs, PC and branch banking, while product innovation and knowledge development factors were found to have most significant effect on the success of banking kiosks and phone banking respectively.

Lustik (2004), in his study, tried to assess the profitability of electronic banking services for the banks. In order to analyze the cost structure for traditional and electronic channel transactions, the author explored the implementation techniques of activity based costing (ABC). The results of the study indicated that electronic channels provide cost saving for banks and their clients. The study revealed that with help of ABC technique, banks can reduce and regulate some costs. It was also found that the decrease in transaction costs after introduction of electronic channels was slower than expected as existing traditional channels could not be closed at the same speed as the new electronic channels were introduced.

Studies related to Customer:-Simon and Victor (1994) examined the reasons why ATM card holders accept or reject EFTPOS and how they viewed the risk of EFTPOS when compared to credit and cash. The authors signified that more marketing research and consumer participation was needed in designing and introducing e-banking services so as to gain more user acceptance. They signified that in order to reduce fears in the minds of people regarding security, it was required to introduce risk reduction techniques such as money back guarantee, live demonstration and free trial to reduce psychological, financial and time loss risk. The researchers suggested that to prove e-payment methods more successful, it should be based on proper marketing risk, prompt service support, sufficient legal protection and awareness.

Krishnan (2001) examined the evolution of E-banking in Malaysia and analyzed the various electronic delivery channels used by local banks to assess the consumer reaction to these delivery channels. The objective of the study was to present progressive development of e-banking, electronic delivery channels and some pertinent issues for successful implementation of E-banking. The study was based on a sample of 300 bank customers, and revealed that 90 per cent of respondents visit their bank branches at least once every month, 63.3 per cent customers indicated four or more visits to ATMs every month, 20 per cent of the respondents

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were using tele-banking services. Only 6.7 percent customers indicated that they would not be interested at all using these services. The results showed that among different channels of e-banking like mobile banking, internet banking, ATM’s, PC banking; ATMs were widely accepted by the people. The researcher also found that bank branches and interaction with human tellers were still important. 60 per cent of the respondents had internet access at home and it presents a positive indication of PC banking in future. The author concluded that for successful implementation of e-banking, the major pre-requisites were legal and physical infrastructure because e-banking requires a lot of tangible and technological changes in banks.

Pikkarainen et al. (2004) highlighted that electronic banking technology had created new ways of handling daily banking affairs especially via online banking channel. The authors adopted technology acceptance model to leverage the online environment. The model indicated online banking acceptance among private banking customers in Finland through a sample survey. The findings of the study indicated that perceived usefulness, information on online banking, security and privacy, quality of service, ease of use on the website were the main factors influencing online banking acceptance. The authors suggested that banks should now more concentrate on their e-banking issues so that online banking could become more popular and adaptive for customers.

Singh (2004) examined the impact of online banking and internet banking. The objective of the study was to find who uses internet, why and where. It also examined the respondents’ reasons for not using banking online. The data was collected from two universities of Kwazunatal. The researcher analyzed that males use more internet banking than females. Main services used through websites were inter-account transfer, paying accounts, checking balance/ statement, communication with the banks, etc. Security was the main issue for not using banking online. The author suggested that to make online banking more adaptive, websites should be more attractive, more informative and colourful. Training should be given to customers. Charges of online facilities should also be less. Banks should advertise and publicize their new products and services offered on the websites so as to make internet banking more popular among customers.

Robbins (2006) tried to evaluate whether the adoption of e-banking by the banks affected the importance of bank location. The study looked into the state of consumer adoption of e-banking products and growth of e-banking products since 1995. The study also investigated whether consumer choice had changed as a result of increased e-banking use and how banks had responded. The study also questioned why location was still important today. The author focused that e-banking was not a perfect substitute of physical presence of banks in the market. Consumers want the convenience of e-banking products but only of those banks which fall close to their place. So, the location of a bank and electronic banking were complementary to each other.

Studies related to Technology:-Aggarwal (2003), in his paper, looked for such avenues where e-banking could play significant role in E-democracy. The author discussed two case studies on the implementation of E-banking in digital democracy. One was farmer service and other was E-seva. While applying E-banking in E-democracy, services become more secure, efficient, transparent and fast. It becomes a win-win situation for all, for banks its low cost, for government its better service, for business its fast and secure, and for citizens its transparent and efficient. The author evaluated that e-banking could be used for successful e-banking for online bill payment, online

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brokerage, online account management, anywhere banking, etc. The author concluded that e-banking services provide one stop service and informational unit that provides great benefits to banks, customers, employers and government.

Arora (2003) made an attempt to prove that technology had a definitive role in facilitating transactions in the banking sector; and the impact of technology had resulted into the introduction of new products and services by various banks in India. The author discussed various initiatives taken by the banks to manage transformation and these initiatives had brought customers the convenience of anywhere, anytime banking. The author concluded that technology was a facilitator for advancement in the core business of banking and not an end in itself.

Hogarth and Hilgert (2004) highlighted that electronic banking technology represents a variety of different services, ranging from common ATM services and direct deposit to Automatic Bill Payment (ABP), Electronic Transfer of Funds (EFT) and computer banking (PC banking). The use of e-banking technologies had grown rapidly in the USA, while others have been adopting it slowly. The authors explored such factors that affect the adoption to adopt three e-banking technologies and changes in these factors over time. They suggested that e-banking technologies could not be aggregated into a single category, and thus, “one size fits all’’ would not work. The use of e-banking depends upon how it helps in saving time, decrease the errors, improving inaccurate accounting and preventing in manipulation of data.

Enders et al. (2006), in their paper, addressed a fundamental problem of the disruptive innovation theory which lies in the difficulty to categorize new technologies into sustaining and disruptive innovation. The researchers first discussed basic principles of disruptive innovation theory, outlined five main strategic diversions that incumbent firms need to address when they face disruptive circumstance in their industry. They further discussed different e-banking modes used by Nordea banks, i.e., e-identification, e-signature services, e-billing services, e-salary function, e-payment function. However, e-banking services should be properly analyzed for the relativity of disruption.

Krishnamurthy (2006) highlighted the advantages, risks, innovations and convenience involved in e-banking. ATM, telephone, internet and cluster banking helped banks to deliver the products more effectively. The author, in his paper, also described operational efficiency of e-banking. It included basic e-banking, simple transactional and advanced transactional e-banking. Each site offered a differential kind of services to customers. The author also commented upon some risks such as loss of secrecy of the customers, financial stability, fraud prone possibilities, eruption of legal claims, etc. So, the author suggested that banks should adopt such a strategy in which risks and innovation in banking products move parallel and simultaneously.

Paul (2006) discussed the role of technology and scope of remote channels, their implication, strength, weakness, opportunity and threat in banking sector. The author evaluated that IT development affects banking in two ways. Firstly, it had contributed in reduction of costs associated with management of information by replacing paper based and labour intensive methods with automated processes. Secondly, it had modified the ways in which customers had access to banks’ services and products. The researcher found that the introduction of RTGS, NDS, and CFMS had increased the safety, security, efficiency and soundness in payment system. Lastly, the author revealed that technology had a great impact on the structure of banking sector in the form of bank branches, bank personnel and alliance.

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Raghvan (2006) highlighted the transformation in the banking sector due to effect of information technology, tele-communication and electronic data processing. He also attempted to visualize the perception of banks in India in the year 2020 taking into account the impact of internet banking, ATMs, EFT on the performance of banks and initiative taken in liberalization, privatization and globalization. He also evaluated the future of online and internet banking. Due to tangible and proven benefits, automation of manual processes; online and internet banking was slated to increase manifold. Ho also evaluated that currently an estimated 46 lakh net users were online and this was estimated to touch 160 lakh by March 2008. Furthermore, he analyzed the projected indicators of banks in India in 2020 with special emphasis on internet banking, online banking and electronic banking.

Raja et al. (2008) evaluated the impact of e-payment system on the business opportunities. They identified that due to the growth of internet users, various electronic payment mechanisms had been developed to cater the diversity of applicants. The researchers classified the e-payments into three main groups, namely, cash like systems, cheque like systems, and hybrid systems which were further classified into credit cards, debit cards and electronic cheques. They identified three main issues related to e-payment that were security issues, low interest among businessmen, and heavy reliance on traditional payment methods. They also analyzed that there were technical and cultural problems which hinder the path of e-payments. However, to make e-payments more effective, security threats should be reduced; and people should be realized that traditional payment methods were more time consuming than electronic payment methods. They should also be realized that plastic card payments were more convenient, easier and more secure than cash or cheques.

Sarangapani and Mamtha (2008) studied the impact of Information Technology on banking sector and its security related aspects. Due to recent developments in banking industry and with introduction of Basel-I and II implementation; customers are more demanding now and it requires innovation in banking services. The researchers found that now the banking industry has been more customer-oriented with unlimited market place, extensive product breadth and e-enabled services provided to the customers. The IT initiatives in banking industry have resulted into reduction of time. Introduction of negotiated dealing system, screen based trading and RTGS for online settlement of inter-bank transfers of fund had also resulted into safe, secure and quick movements of funds. The authors also studied e-security aspects of banking which pose damage and threat to the existing e-banking system. It includes unauthorized access to computer system or network, stealing information, e-mail bombing, data diddling, denial of service, viruses, etc. The authors concluded that existing legal framework was adequate to meet the challenges of e-banking; and it had become essential to create awareness of e-banking among customers, banks and society. Different attempts have been made by the researchers to give a close look to the concept of electronic banking. The review of literature provided that e-banking services have a negative impact on banks’ profitability in the short run because of increased capital costs on account of technical and electronic infrastructure, training their employees and also to create the environment where the banks can electronically operate smoothly. However, these services have a positive impact on the profitability of banks in the long run. Despite the increasing importance of E-banking services, the research pertaining to E-banking in Indian context has been limited. While concluding, it can be said that e-banking services are complementary to the existing branch network and not a substitute to it.

Studies related to Financial Performance:-

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But few studies say that for decades, it has been a matter of debate whether Technology/Information Technology (it) provides better financial results. To date there is no conclusive evidence that spending on it improves financial performance. The scholars call it the ‘it Productivity Paradox.’ The term ‘paradox’ indicates a negative correlation between it investments and productivity. On similar lines, studies by

Strassman (1990) have also concluded that there is an insignificant correlation between it spending and profitability measures, which means it spending is unproductive. There are, on the other hand, studies which show that there is no correlation between IT investment and financial productivity.

Brynjolfsson (1993); Wilson (1993), analyzed that Most of these firm-level studies have been restricted to the manufacturing sector (that too, outside India), in large part owing to lack of firm-level data from the service sector. There are studies which have drawn on the statistical correlation between IT spending and profitability or stock value for their analyses and they have concluded that the impact of it on productivity is positive It is apparent that most of the studies relating to the contribution of it towards productivity have been restricted to the manufacturing industry. The problem is particularly relevant to the banking industry, which is the focus of the present study. In India, there are not many studies that have focused on it contribution in the banking sector.

Mariappan (2006) found that the it revolution has brought stunning changes in the business environment. No other sector has been influenced by advances in technology as much as banking and finance, as a result, the Indian banking has a totally new face today.

Kamakodi (2007) examines how computerization has influenced the banking habits and preferences of Indian bank customers and what factors influence these preferences. He found that change of residence, salary account and non-availability of the technology based services were the three main reasons for shifting to another bank.,

Patnaik (2004) found that shared atms are taking place and they are mutually beneficial. This mushrooming new dimension of shared ATMs has increased the non-interest income of the banks. This is the most popular e-channel and widely used in all the bank groups.

Paul and Mukherjee (2007) explained that cash management in ATMs is a new concept which facilitates the banks to source cheaper funds and serve its clients more efficiently.

Yet, there have been a number of studies which have focused on the financial performance and efficiency of the banks in the recent past. The studies reveal that the profitability of Indian banks has increased since the second generation banking reforms and, among the several bank groups, the foreign and private sector banks are performing well as compared to the public and nationalized banks in India (Sarkar, Sarkar and Bhaumik 1998; Muniappan 2002; Sooden and Bali 2004; Aggarwal 2005; Arora and Verma 2005; Bhaskar 2005; Madhavankutty 2007; Uppal and Kaur 2007; Kumar and Sreeramulu 2008).

Another significant area which has emerged recently and been explored by the researchers is that of risk management in the banks.

Habbar (2004) emphasizes that managing technology is a key challenge for the Indian banking industry. Banks have enhanced their networks and communication infrastructure to reap the

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full benefits of computerization. E-banking is fast catching up. There is a great need for trust, privacy and confidentiality. Only sound corporate governance would lead to effective and meaningful banking (Lakhsmi Naraynan 2004). Narayanasami (2005) states that Indian banking is in a better position with respect to technology, capital adequacy, credit management, risk bearing capacity, international competitiveness and contribution to the national economy. For global competition, Indian banks will have to gear up to meet stringent prudential capital adequacy norms under Basel i and ii accords (Subbaroo 2007).

Bhattacharya et.al (1997) & Sathye (2003) have measured efficiency of the banks using the mathematical programming technique of data envelopment analysis (DEA). It shows that analysis to the traditional financial ratios to measure performance and efficiency mainly because of ready availability of data there on.

A1 – Tamimi (2010) & Aburime (2005) the performance of commercial banks can be affected by internal and external factors, these factors can be classified into bank specific factor (Internal) and macroeconomic variables. The internal factors are individual bank characteristics which affect the bank’s performance.

Nzongang and Atemnkeng in olwency and shipho (2011) balanced portfolio theory also added additional dimension into the study of bank performance. It states that the portfolio composition of the banks, its profit and the return to the shareholders is the result of the decisions made by the management and the overall policy decision.

Athanasoglou et.al (2005) the internal factors include bank size, capital, management efficiency and risk management capacity. The same scholars contend that the major external factors that influence bank performance are macroeconomic variables such as interest rate, inflation, economic growth and other factors like ownership.

Vincent Okoth Ongore & Gemechu Berhanu Kusa (2013) studies on moderating effect of ownership structure on bank performance are scanty. To fill this glaring gap in this vital area of study, the author used linear multiple regression model and generalized least square on panel data to estimate the parameters. The findings showed that bank specific factors significantly affect the performance of commercial banks in Kenya, except for liquidity variables. The moderating role of ownership identity on the financial performance of commercial banks was insignificant.

The Data Envelopment Analysis (DEA) method uses linear programming Techniques to measure efficiency of production units that produce multiple outputs. Several studies use this approach to measure efficiency of Indian banks like Bhattacharya, Lovell and Sahay (1997), Sathye (2003), Das and Ghosh (2006), Kumar and Gulati (2009). However this method failed to capture the effect of random shocks to the production system.The existing studies that use stochastic frontier analysis (SFA) to measure different types of efficiency of Indian banks either focus on measuring cost and profit efficiency in monetary terms to avoid the problem of considering multiple output (Sensarma (2006), Zhao et al (2010)) or measure technical efficiency using a simple production model with one type of output only (Shanmugam and Das (2004)). In reality bank produce many financial services (output) using a given set of inputs and none of the existing studies use the stochastic frontier analysis to measure technical efficiency of banks.

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Berg et al (1993) made an attempt to compare banking efficiency in the Nordic countries. A non-parametric Data Envelopment Analysis and Malmquist productivity index have been adopted to measure the efficiency and productivity and productivity differences among countries. A total of 779 banks were considered for the analysis and necessary information were collected from the official bank statistics in Finland and Norway and published annual accounts reports in Sweden for the year 1990.The study at individual country analysis identified that the efficiency spreads between banks were most important in Finland and Norway and least important in Sweden.

Lozana-Vivas (1998) examined the effectiveness of deregulation in improving the cost efficiency of the Spanish banking industry by adopting Thick Frontier and Data Envelopment Analysis methods. Separate panel data for the years 1985-91 of 88 Spanish commercial banks and 55 savings banks have been considered for analysis. The study identified that deregulation was associated with a decrease in relative cost efficiency for commercial banks but no change for savings banks and in both types of institutions operating with cost inefficiency which was almost completely composed of technical rather than allocative.

Drake (2001) investigated the efficiency and productivity change in UK banking by using Data Envelopment Analysis and Malmiquist productivity index. A panel data set consists of 9 UK banks for analysis has been obtained from the annual reports of the respective banks and statistics published by the British Banks Association for the period 1984-1995. The analysis revealed that increasing returns to scale were evident for smaller banks while decreasing returns to scale for large-scale throughout the sample period. Malmiquist productivity indices suggested that UK banks have exhibited positive productivity growth over the period. All U.K banks have been experienced with positive technical change due to increasing competition and product diversity.

Gaps Identified:- There is minimal research in understanding the interaction among the pre E-banking

period and Post E-banking period. There are more studies related to customer perception, employee perception, service

quality, security and awareness of the banking technology but very few studies related to financial performance of the banks by considering E-banking technology.

There are comparatively more studies relating to financial performance based on the pre and post-merger reform period, financial performance at the time of liberalization, but very few studies relating to financial performance based on Pre E-banking and Post E-banking period.

The study on the impact of E-banking on Financial Performance of Pre E-banking and Post E-banking by application trend analysis Model will facilitate the researchers and practitioners to know more about the changes in the banking technology in these two periods.

There are more studies related to financial performance of the banks based on Data Envelopment Analysis and Stochastic Frontier Analysis, but very few studies related to

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Data Envelopment Analysis (DEA) to analyse the efficiency of profitability of the banks based on E-banking technology in India.

Present Research Work:-As the survey of literature strongly identified the the direction of research as well as the missing links in E banking there is a great scope to study further in this direction. The methodology, literature work and data available till recent period may sharpen the policy prescriptions. So, study of this kind continues as an effort in the understanding and analysing of eventualities in technology and further to fix the lapses so as to gain the best out of E Banking as a part of fine tune in new policy.

Research Methodology

Research Method

There is a strong data base and statistical tools available with RBI and organisations like CMIE provide extended data base serve as the best in the estimation process. However, scientific approach in the whole process is need to be formulated to avoid the bias and hasty generalisations.

Research Enquiry

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The present banking environment in the global world with unstable economy and constant changes taking place in the technology of the banks, there is need to look for new tools and processes . The liberalised era witnessed many changes in the financial sector and the introduction of E-banking technology served to boost the performance and creativity of the banking world. Questions of the following necessitate the present study.

1. Would E-banking Technology help the Bank to manage the workplace challenges of today?

2. Does the financial performance of Indian commercial banks can be measured by using productivity and profitability efficiency?

3. Are there any changes in Profit Maximization and cost of transaction of the banks after adoption of E-banking Technology?

Variables for constructing E-Banking Technology Index (ETI)

The variables considered for developing an E-banking technology Index (ETI) which is the combination of two sub – indices such as Bank Disclosure Attribute Index (BDAI) developed by (Charumathi B et.al) and E-banking technology Index (ETI).

E-banking Technology Index Variables

Sl.No. Name of the Index Variables Considered

1 Bank Disclosure Attribute Index (BDAI)

1. General Attribute2. Financial Attribute3. Investor Attribute4. Corporate Governance

2 E-Banking Technology Index 1. No., of computerized branches / Total branches

2. No., of ATMs / Total Branches3. No., of Mobile Banking / Total

Branches4. No., of Internet Banking / Total

Branches5. No., of Tele banking / Total Branches

As the data related to the various payment gateways (facilitated by E-Banking) were available only for the banking industry as a whole, the same could not be included for construction of ETI. However, the implementation status of various payment gateways is analyzed and the variables considered are:-

Variables for payment Gateway variables consideredSl. No. Name of the Payment Gateway Variables1 Paper Based Vs ECS Debit Clearing

Credit Clearing2 Paper Based Vs NEFT / EFT Debit clearing

Credit ClearingE-Cheques

3 Paper Based Vs RTGS Inter Bank TransactionIntra Bank Transaction

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4 Paper Based Vs MICR CTS

Variables for Analyzing the performance

The analysis is made on the basis of available information and divided into two parts:-

1. First part explains the trend and growth in selected ratios of productivity and profitability of E-banking technology.

2. Second part explains the impact of technology on productivity and profitability by using DEA Analysis.

Profitability:-

Profitability is a rate expressing profit as a percentage of total assets or sales or any other variable to represent the relationship. In fact, there may be various dimensions of profitability analysis. A large number of ratios can be used in order to measure the banks profitability as:

1. ROA2. ROE3. PM

Return on Assets = Net Income/Total Assets: ROA is the ratio of a company's annual revenues to its total assets and always displayed as a percentage. Return on Assets measures and displays how lucrative a company could be in comparison to the firms’ total assets. Also for management efficiency, ROA gives a detailed idea as to how it uses its fixed assets to produce incomes.

Return on Equity = Net Income/Share holder’s Equity: Return on equity is another profitability ratio that that evaluates profitability of any company, especially for big sized company, by giving a detailed information of how much income or earnings a company makes with the total money shareholders of that company invested. The ratio is always in percentage.

Profit Margin = Net Income/Total Operating Income: This ratio calculates the level of dollar worth in sales a company actually retains in income. It is very of use when evaluating different companies in the same scale. We also know that when profit margin is high, it shows that the company is a very profitable one, and it also indicates that the company has an enhanced control of its expenditures as compared with those they are competing with.

ProductivityProductivity is a vital indicator of economic performance. In simple words, it is output-input ratio. It is a relationship between given output and the means used to produce it. Banking is primarily a service industry. There are number of indicators to measure the productivity of banking sector. Measures of productivity at bank or industry level may differ from the indicators of productivity at branch level.Productivity is affected by man power, mechanization, system and the procedures, costing of operations, customer services and various external aspects. There are number of ratios of compute productivity as:Per Employee Indicators (Labour Productivity):

1. Deposit per employee2. Business per employee3. Net profit per employee

Per Branch Indicators (Branch Productivity):1. Deposits per branch

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2. Business per branch3. Net profit per branch

The performance indicators and variables considered bank performance indicators are:-

Sl., No., Performance Indicators Variables Considered

1 Profitability (Financial performance) ROAROEPM

2 Employee Productivity (Non Financial Performance) (Productivity)

Branch Productivity

Number of employeesBusiness per employeesNet Profit per employeesNumber of branchesBusiness per branchesNet Profit per branches

Dependent Variables

ROAROEPMDeposit per Employees

Business per employeesCredit per employeesDeposit per branchesBusiness per branchesCredit per branches

The ratio of average net income to total assetThe ratio of average net income to average equityThe ratio of net income to total operating income The ratio of The amount of Total deposit to no., of EmployeesThe amount of total business / number of employeesThe amount of total credit / number of employeesThe amount of deposit / number of branchesThe amount of total business / number of branchesThe amount of total credit / number of branches.

IndependentVariables

X1 Computerized BranchesX2 ATMSX3 Mobile BankingX4 Internet BankingX5 Tele BankingX6 VOL OF CUSX7 VOL of TRANX8 BDAI

Number of Computerized branches / Total Branches

Number of ATMs / Total BranchesNumber of Mobile Banking / Total BranchesNumber of Internet Banking / Total BranchesNumber of Tele Banking / Total BranchesThe ratio of Number of Customer / Total CostThe ratio of Transaction per day / Total CostDummy for the banks who have BDAI

E-Banking Technology Index (ETI) Model specification:-ETI = [(number of computerized branches / Total Branches) + (number of ATMs / Total Branches) + (number of Mobile Banking / Total Branches) + (number of Tele-banking / Total Branches) + (number of Internet banking / Total Branches)] X 100

Research Objectives

1. To analyse the financial performance of banks after adoption of E-banking technology.2. To know the impact of E-banking in pre and post technology period in terms of wages,

expenditure and cost of transaction.

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3. To estimate the impact of E-banking technology in terms of efficiency (profit and productivity) of bank groups operating in India.

4. To empirically evaluate the status of technology implementation among the bank groups operating in India by using E-banking technology index. (ETI)

5. To analyse the impact of technology on efficiency in terms of cost and profit by using Data Envelopment Analysis (DEA) of public and private sector Indian commercial banks.

6. To empirically evaluate the status of technology on the performance using (financial and non-financial performance) of bank groups operating in India.

7. To analyse the overall performance of banks in two period i.e., Pre and post E-banking period

Research Hypothesis

1. H0:- The financial performance of banks adopting E-banking is not different from those of banks not to adopt E-banking in terms of Size, profitability, asset quality, operating capability, financing, diversification and cost of operation.

2. H0:- The financial performance of banks adopting E-banking in pre E-banking period is not different from those banks not adopted E-banking in terms of wages and expenditure.

3. H0:- The financial performance of banks adopting E-banking in post E-banking is not from those of banks adopted E-banking in terms of wages and expenditure.

4. H0:- The financial performance of banks adopting E-banking in pre E-banking period is not different from those not adopted E-banking in terms of profitability.

5. H0:- The financial performance of banks adopting E-banking in pre E-banking period is not different from those not adopted E-banking in terms of productivity..

6. H0:- The financial performance of banks adopting E-banking is not different from those of banks adopted E-banking in terms of Cost of Transaction.

PopulationSl.No.,

Ownership and Category No., of Banks as on March 31 2013,

1 Public Sector BankSBI and its AssociatesNationalized Banks + Other public sector Bank

1 + 5 = 619 +1 = 20

2 Private Sector BankNew Private Sector BankOld Private Sector Bank

7 = 711 = 11

Total 44

RBI Website

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Period of the StudyFor this study, the time period divided into two parts because in the first period, IT was not mature but after 2001, IT is becoming mature in the banking sector. Before the IT Act, there was very limited computerization and there were no e-delivery channels and that is why considered this period as pre-e-banking period (1996-2001). After the IT Act, almost all the banks, started to use e-delivery channels that is why I have considered this period as post E-banking period(A) Pre E-banking period (from 1996-97 to 2000-01) (B) Post E-banking period (from 2001-02 to 2012-13)

Sources of Data The source of data is Secondary Data obtained from the Annual Reports of the banks, Balance Sheet, RBI Publication, CMIE and websites of the various banks. Experts in the field were also approached for the purpose of discussion to understand the problem in right perspective the work of academicians on the subject has also been consulted for the purpose of analysis.

Data Envelopment Analysis:-

DEA is a non – parametric approach used for evaluating the relative efficiency of similar units, referred to as decision making units developed by (Charnes, cooper and Rhodes (1978)). In a view of banking activity as a transformation of particular set of inputs () into a particular set of outputs (ROA, ROCE and RONW) the relative efficiency of banks can be analyzed by using DEA. DEA is non-parametric, deterministic methodology for determining relatively efficient production frontier, based on the empirical data on chosen inputs and outputs of a number of entities called Decision making units (DMUs). From the set of available data DEA identify reference points (relatively efficient DMUs) that define the efficient frontier (as the best practice production technology) and evaluate the inefficiency of other, interior points (relatively inefficient DMUs) that are below that frontier.

Compared to the regression analysis, DEA provides an alternative approach. The DEA is based on external observations; while in the regression approach a single estimated regression equation is assumed to apply to each observation vector, DEA analyse each vector DMUs separately, producing individual efficiency measures relative to the entire set under evaluation.

The main advantage of DEA is that unlike the regression analysis, it does not require a prior assumption about the analytical form of the production function. Instead, it constructs the best practice production function solely on the basis of observed data and therefore the possibility of misspecification of the production technology is minimized.

On the other hand, the main disadvantage of DEA is that the frontier is sensitive to extreme observations and measurement errors (the basic assumption is that random errors do not exist and that all deviations from the frontier indicate efficiency).

Multivariate Analysis:-

Although the univariate analyses depict a tremendously higher performance by banks in the E-banking group(s) relative to non-E-banking group, however it is hard to make any conclusive statement on the actual impact of the E-banking adoptions on bank performance without a multivariate analysis. Here a multivariate regression model is estimated to investigate whether there is a link b/w offering E-banking and bank performance.

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The focus of the investigation is to see if E-banking has an effect on bank performance. A dummy variable (EBANKING) was created that takes a value of 1 if the bank has adopted E-banking activities; otherwise it takes a value of zero. The co-efficient associated with this E-banking adoption dummy will indicate the possible association between the E-banking adoption by banks and their overall performance. The other variables the bank’s performance have been developed from the available literature on determinants of bank’s performance (eg., Athanasolou et.al 2005, Shanmugam and Das 2004). Return on asset, return on equity, are used as performance measures. Various bank characteristics are used as proxies for the bank’s internal measures eg., size, capital, expanses management. Ratios and bank ownership dummies while macroeconomic indicators are used to represent the external measures.

A linear equation, relating the performance measures to a variety of financial indicator is specified. Following model has been used to examine the relationship between the performance of banks and adoption of E-banking after controlling the other variables affecting the performance.

Yit = c + α*EBANKINGit + ΣβiXit + €it Where, Yit presents profitability and bank i at time t,C is a constant termXit are explanatory variables.€it is the disturbance term the subscript i indexes bank level observation sand the subscript t indexes time in years. EBANKING is a dummy variable equal to 1 to E-banks and the co-efficient α provides the main static test. A statistically significant value for α indicates a financial performance gap between the E-banks and the non – E-banks at the means of the data. The co-efficient are estimated by employing regression on a sample of all banks as well as sample of different categories of banks.The explanatory variables with their labels and definitions that have been used to examine the relationship between the performance of banks and adoption of E-banking.

Software and Packages

The software and packages used for this study include SPSS 21.0, Frontier 4.1 developed by Tim Coelli (2005).

Statistical AnalysisIn addition to the trend analysis parameters have been tested statistically with the help of following statistical tools:- Multivariant Analysis Regression ANOVA (Bank wise and Year wise difference among the banks) Testing of hypothesis by Mann Whitney U Test.

Utility of the study Academia: Add to the body of knowledge which can be used for banking and further

research.Tentative Chapter SchemeThe probable chapter scheme for the thesis would be as follows, please note this scheme is tentative and is amenable to changes based on recommendations from the guide and other experts.1. IntroductionThe first chapter includes introduction, statement of the problem, rationale of the study, objectives of the study, variables, hypotheses, research methodology (population, sample,

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research models, tools and techniques, software and packages used) period of study, limitations of the study and chapterization.

2. Review of LiteratureThe second chapter includes the review of work related to the impact of technology on the performance of firms in general and banks in particular.

3. Evolution and Recent Trends in Banking TechnologyThe third chapter traces the evolution of technology applications in banking and presents the recent trends in banking technology.

4. Status of IT implementation among bank groups in India – An Empirical EvaluationThe fourth chapter presents the empirical evaluation of the status of IT implementation among the bank groups operating in India by using E-banking Technology Index (ETI). Various statistical tools such as correlation, regression, ANOVA and Mann Whitney U Test is used to rank the banks.

5. Impact of E-banking on the financial Performance of Indian banking industryThis chapter presents the analysis and interpretation of data related to the effect E-banking on the financial performance/Index on the performance of banks using ratio analysis. The various statistical tools such as correlation and regression are used.

6. Impact of E-banking on the financial Performance of Indian Banking IndustryThis chapter presents the analysis and interpretation of data related to the financial performance of banks in terms of cost and profit using Data Envelopment Analysis. Impact of E-banking investments on financial performance and its efficiency is also found. ANOVA is used to find out the bank-wise and year-wise difference among the banks’ cost inefficiency and estimates which is arrived by using the software FRONTIER 4.1.

7. Summary of Findings, Suggestions and Conclusion and possibility for future researchThis chapter summarizes the findings and offers suggestions to improve the impact of E-banking on the financial performance of Indian banking industry than ever before.

Brief CVName: Jayashree Narayan H.T

Education:College / University Degree Year

MVJ College of Enigneering (VTU)

MBA (Finance) 2006-2008

Indian Academy College, (Bangalore)

BBM (Finance) 2003-2006

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Worked as a Lecturer in Vivekananda Institute of Technology for 1 Year.

Plan of Action for 2 to 3 Years

a) The framework will be framed by having discussions with the guide and bank managers.b) Tool will be developed based on:

Available Balance sheet and RBI Publications Taking items from available balance sheet and modifying for our purpose Developing new items Testing the Hypothesis based on Mann Whitney U Test for ranking the banks based on

the technology.c) Ratio analysis is used and Data Envelopment analysis is used to analyse the efficiency of

the banks. Correlation, Regression and ANOVA is used.d) Using E-Banking Technology Index (ETI) to analyze the performancee) Actual study: collecting the B/S from the banks and analyzing it.f) Analysis to find out the interrelation among the parameters.

Tasks Till Dec’13 Jan’14 to June’14

July’14 to Dec’14

Jan’15 to June’15

July’15 to Sep’15

Further Literature Review and Theoretical and Conceptual Framework Finalization

Development of measuring tool, Testing of tool, ratio analysis

Data collection, having discussions with the experts.

Analysis and Interpretation

Thesis writing and Review

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Appendix:-

List of the Banks Selected for the Study:-Sl. No. Public Sector Banks Private Sector Banks

SBI and associate banks New Private Sector Banks1 State Bank of India ICICI Bank2 State Bank of Bikaner and Jaipur HDFC Bank3 State Bank of Hyderabad AXIS Bank

4 State Bank of Mysore Kotak Mahindra Bank

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5 State Bank of Patiala Yes Bank6 State Bank of Travancore IndusInd Bank

Nationalized Banks Development Credit Bank7 Allahabad Bank Old Private Sector Bank8 Andhra Bank9 Bank of Baroda Bharat Overseas Bank10 Bank of India City Union Bank11 Bank of Maharashtra Dhanlaxmi Bank12 Canara Bank Federal Bank13 Central Bank of India ING Vyasa Bank14 Corporation Bank J & K Bank15 Indian Bank Karnataka Bank16 Indian Overseas Bank Karur Vyasa Bank17 Punjab National Bank South Indian Bank18 Syndicate Bank Tamilnadu Mercantile Bank19 UCO Bank Catholic Syrian Bank20 Union Bank of India21 United Bank of India22 Vijaya Bank23 IDBI Bank24 Dena Bank25 Oriental Bank of Commerce26 Punjab and Sind Bank

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