IOSR Journal of Business and Management (IOSR-JBM)

e-ISSN: 2278-487X, p-ISSN: 2319-7668

PP 64-69
www.iosrjournals.org

Comparative Study between Private Sector and Public Sector

Banks in the Adoption of Technology in Banking Services - Twin
Cities
N. Chandan Babu, P.Rajini
Lecturer in Statistics, Bhavan’s Vivekananda College, Sainikpuri, Sec-Bad.
Email-Id : [email protected]
Lecturer in Statistics, Bhavan’s Vivekananda College, Sainikpuri, Sec-Bad.
Email-Id : [email protected]

Abstract: The paper consists the study is to identify and analyze the factors influencing the customer adoption
of technology in banking services in the twin cities. The impact of technology on banking operations. Also,a
comparative study of banks in different regions to analyze ATM, Internet banking, Telephone banking, Mobile
banking services used between users and problems of technology usage in that bank. The Paper is basically
concernedand the customer aspect of technology in banking searching for customer satisfaction level and
adoptions of banks are analyzed between using Statistical Tools through R-Programming. This is a comparative
study of Public sector banks and Private Sector banks and finds out the majority of which kind of transaction in
banks in Twin cities.
Key words: ATM, Internet banking, Telephone banking, Mobile banking.

I. Introduction:
The bank of any country plays very important role in the economic development of the country.
Finance is regarded as the oxygen of trade and industry. The development of banks in the country and develop
through banks in the country has placed India amongst the top 5 fastest growing economics in the world. The
whole of the world is looking towards India a prospective dominant player in the world's markets. The banks
today have touched the lives of every citizen. Whether he has to keep his money at midnight from the bank, to
keep is valuable safe; to book the tickets for rail and air journeys; to pay insurance premium, telephone bills,
electricity bills; to purchase/sell securities from the capital market, to take a loan for business, for education, for
a house or for consumer items, everywhere the bank is present.
Basically, the banks can be divided into two sectorscommercial banks and co-operative banks. Banks,
which have a national network and provide services are further divided into 2 sectors Public sector banks and
private sector banks. Public sector banks are fully controlled bythe government (i.e. central government) and
private sector banks have private ownership.
The present research was conducted keeping in view the sharp difference between Private Sector and Public
Sector Banks in the adoption of technology in banking services in Twin Cities.
Banking in India was generally fairly mature in terms of supply, product range and reach even though
reach in rural India and to the poor still remains a challenge. The government has grown capability to address
this through the State Bank of India expanding its branch network and through the National Bank for
Agriculture and Rural Development with things like microfinance.

II. Review Of Literature:

Kumar (2006) he studied the bank nationalization in India marked a paradigm shift in the focus ofbanking as it
was deliberated to shift the focus from class banking to mass banking. Internationally also efforts are being to
study causes of financial inclusion of low-income group treating it both a business opportunity as well as a
corporate social responsibility.
Singla(2008) examines that how financial management plays an important role industrialist growthof public and
private banking. It is concerning and examined the profitability position of selected sixteen banks of banker
index for a period of six years (2001-2006) the study reveals that the profitability situation was reasonable
during the period of study when compared and the previous year. Banks in a better position to deal and absorb
the economic constant over a period of time.
Prashanta Athma (2000), in his Ph.D. research submitted at Osmania University Hyderabad, “Performance of
Public Sector Banks – A Case Study of State Bank of Hyderabad, made an attempt to evaluate the performance

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 Comparative Study between Private Sector and Public Sector Banks in the Adoption of Technology….

of Public Sector Commercial Banks with special emphasis on State Bank of Hyderabad. The period of the study
for assessment of performance is from 1980 to 1993-94, a little more than a decade.
V.N. Saxena(1978), analyzed that "Improvement in the systems and procedures of inspection of stocks,
maintenance of stock register is required. Reforms should be initiated in the extension of sponsorship schemes,
recovery, and consultancy". This can be supporting tools for banks.
Mumupilly (1980), examined the cost and profitability of commercial banks in India. The study provides an
analytical view of the trends in the components of cost of earnings of different groups of Indians commercial
banks since nationalization. The study mainly focuses on the cost and profitability of banking industry as whole
rather than individual banks.
Gupta and Verma (2008), have Studied the improve paradigm in Indian banking and revealed that banking
sector has been serving the crucial needs of the society even after undergoing various changes. With the passage
of time, the wonderful resilience and adaptability of the banking sector to the changing needs of the society
seem to have reached the threshold of the revolutionary era. „Anywhere and anytime banking‟,„Telebanking‟,
„Internet Banking‟, „Web Banking,‟ E-Banking‟, ‟E-Commerce‟, „E-business‟ are all innovative offerings to
their customers.

Objectives Of The Study:

1. Comparative study between Public sector banks and Private sector banks in ATM, Internet Banking,
Telephone banking, Mobile Banking services.
2. Comparative study between Public sector banks and Private sector banks in ATM, Internet
banking, Telephone banking, Mobile Banking problems of technology Usage.
3. To check the expectations and the satisfaction levels regarding the various services Quality dimensions
between public and private sector banks.

III. Research Methodology:

The Primary data collected for the research has in the form of Questionnaire as well as verbal
information. The information about the factors influencing the customer‟s adoption of technology in banking
services from 500 customers and analyzed between R-Programming.
We used a t-test to test the significant difference between Gender vs.Banking Services, Satisfaction on
technology, Quality of various banking services.

Table 1: Gender vs. Banking Services, Satisfaction on technology, Quality of various

banking services
Null Hypothesis H0: There is no significant difference between Gender and Branch banking
Null Hypothesis H0: There is no significant difference between Gender and Satisfaction on technology usage
Null Hypothesis H0: There is no significant difference between Gender and Quality of various banking services

Banking Services vs Gender

Comparison P - Value Inference
Branch banking vs Gender 0.6745 There is no significant difference between "Gender"and "Branch banking"
ATM vs Gender 0.2834 There is no significant difference between "Gender"and "ATM"
Internet Banking vs Gender 0.2284 There is no significant difference between "Gender"and "Internet Banking".
Telephone banking vs Gender 0.795 There is no significant difference between "Gender"and "Telephone banking".
Satisfaction on technology usage vs Gender
Comparison P - Value Inference
ATM Service vs Gender 0.2337 There is no significant difference between "Gender"and "ATM Service".
Internet banking services vs Gender 0.9389 There is no significant difference between "Gender"and “Internet banking services".
There is no significant difference between "Gender"and "Telephone Banking
0.9748
Telephone Banking vs Gender services".
Quality of various banking services vs Gender
Comparison P - Value Inference
Reliability vs Gender 0.3022 There is no significant difference between "Gender”and "Reliability".
Responsiveness vs Gender 0.7762 There is no significant difference between "Gender”and “Responsiveness".
Assurance vs Gender 0.1779 There is no significant difference between "Gender”and “Assurance ".
Efficiency vs Gender 0.4705 There is no significant difference between "Gender”and “Efficiency".
Accuracy vs Gender 0.268 There is no significant difference between "Gender”and “Accuracy".
Security vs Gender 0.2792 There is no significant difference between "Gender”and "Security".
Easy and convenient banking vs There is no significant difference between "Gender”and “Easy and convenient
Gender 0.8426 banking".
Customer Service vs Gender 0.1284 There is no significant difference between "Gender”and "Customer Service".

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 Comparative Study between Private Sector and Public Sector Banks in the Adoption of Technology….

From the above table, we conclude that there is No Significant difference between Gender Vs Banking Services,
Satisfaction on technology and Quality of various banking services.
We used a t-test to test the significant difference between Banking Services vs advanced technology.

Table 2: Banking Services vs Public and Private Banks:

Null Hypothesis H0: There is no significant difference between Public sector banks and Branch
banking andThere is no significant difference between Private sector banks and Branch banking.
Null Hypothesis H0:There is no significant difference between Public sector Satisfaction on technology
usageand There is no significant difference between Private sector banks and Satisfaction on technology usage.
Null Hypothesis H0:There is no significant difference between Public sector Quality of various banking
servicesand There is no significant difference between Private sector banks and Quality of various banking
services.

Banking Services vs Public and Private banks

Comparison P - Value Inference
Branch banking vs Public and Private There is no significant difference betweenPublic and Private banks with
0.1968
banks respect to Branch banking
There is no significant difference between Public and Private banks with
0.7124
ATM vs Public and Private banks respect to ATM.
Internet Banking vs Public and Private There is a significant difference between Public and Private banks with respect
0.009385
banks to Internet Banking.
Telephone banking vs Public and Private There is no significant difference between Public and Private banks with
0.4897
banks respect to Telephone banking.
Satisfaction on technology usage vs Public and Private Banks
Comparison P - Value Inference
ATM Service vs Public and Private There is no significant difference between Public and Private banks with
0.4332
Banks respect to ATM Service.
Internet banking services vs Public and There is no significant difference between Public and Private banks with
0.07133
Private Banks respect to Internet banking
Telephone Banking vs Public and There is no significant difference between Public and Private banks with
0.65
Private Banks respect to Telephone Banking
Mobile Banking Services vs Public and There is no significant between Public and Private banks with respect to
0.2241
Private Banks Mobile Banking .
Quality of various banking services vsPublic and Private Banks
Comparison P - Value Inference
There is no significant difference between Public and Private banks with
0.3022
Reliability vs Public and Private Banks respect to Reliability.
Responsiveness vs Public and Private There is no significant difference between Public and Private banks with
0.7762
Banks respect to Responsiveness.
There is no significant difference between Public and Private banks with
0.1779
Assurance vs Public and Private Banks respect to Assurance.
There is no significant difference between Public and Private banks with
0.4705
Efficiency vs Public and Private Banks respect to Efficiency.
There is no significant difference between Public and Private banks with
0.268
Accuracy vs Public and Private Banks respect to Accuracy.
There is no significant difference between Public and Private banks with
0.2792
Security vs Public and Private Banks respect to Security.
Easy and convenient banking vs Public There is no significant difference between Public and Private banks with
0.8426
and Private Banks respect to Easy and convenient banking.
Customer Service vs Public and Private There is no significant difference between Public and Private banks with
0.1284
Banks respect to Customer Service.

From the above tables, we conclude that there is no significant difference between Public and Private banks with
respect to banking services, Satisfaction on technology usage, Quality of various banking services except the
Internet Banking in banking services.
We used ANOVA to test the significant difference between Age vsBanking Services, Satisfaction on
technology, Quality of various banking services.

Table 3: Age vsBanking Services, Satisfaction on technology, Quality of various banking services.
Null Hypothesis H0: There is no significant difference between Age and Branch banking
Null Hypothesis H0: There is no significant difference between Age and Satisfaction on technology usage
Null Hypothesis H0: There is no significant difference between Age and Quality of various banking services

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 Comparative Study between Private Sector and Public Sector Banks in the Adoption of Technology….
Banking Services vs Age
Comparison P - Value Inference
Branch banking vs Age 0.927 There is no significant difference between "Age” and "Branch banking"
ATM vs Age 0.857 There is no significant difference between "Age" and "ATM".
Internet Banking vs Age 0.00365 There is a significant difference between "Age" and "Internet Banking".
Telephone banking vs Age 0.768 There is no significant difference between "Age" and "Telephone banking".
Satisfaction on technology usage vs Age
Comparison P - Value Inference
ATM Service vs Age 0.9 There is no significant difference between "Age" and "ATM Service".
Internet banking vs Age 0.752 There is no significant difference between "Age" and "Internet banking services".
Telephone Banking vs Age 0.00169 There is a significant difference between "Age" and "Telephone Banking services"
Quality of various banking services vs Age
Comparison P - Value Inference
Reliability vs Age 0.38 There is no significant difference between "Age" and "Reliability".
Responsiveness vs Age 0.556 There is no significant difference between "Age" and “Responsiveness".
Assurance vs Age 0.672 There is no significant difference between "Age" and “Assurance ".
Efficiency vs Age 0.786 There is no significant difference between "Age" and “Efficiency".
Accuracy vs Age 0.661 There is no significant difference between "Age" and “Accuracy".
Security vs Age 0.503 There is no significant difference between "Age" and “Security".
Easy and convenient banking vs Age 0.151 There is no significant difference between "Age"and “Easy and convenient banking".
Customer Service vs Age 0.11 There is no significant difference between "Age" and “Customer Service".

From the above table, we conclude that

There is No significant difference between Age Vs all Banking Services, Satisfaction on technology usage,
Quality of various banking services except Internet Banking in banking services and Telephone Banking in
Satisfaction on technology.
We used ANOVA to test the significant difference between Education vsBanking Services, Satisfaction on
technology, and Quality of various banking services.

Table 4: Education vs Banking Services, Satisfaction on technology, Quality of various

banking services.
Null Hypothesis H0:There is no significant difference between Education and Branch banking
There is no significant difference between Education and Satisfaction on technology usage
There is no significant difference between Education and Quality of various banking services
Banking Services vs Education
Comparison P - Value Inference
Branch banking vs Education 0.83 There is no significant difference between "Education” and "Branch banking"
ATM vs Education 0.256 There is no significant difference between "Education”and "ATM".
Internet Banking vs Education 0.00747 There is a significant difference between "Education" and "Internet Banking".
Telephone banking vs Education 0.83 There is no significant difference between "Education" and "Telephone banking".
Satisfaction on technology usage vs Education

Comparison P - Value Inference

ATM Service vs Education 0.368 There is no significant difference between "Education" and “ATM Service".
There is no significant difference between "Education “and “Internet banking
Internet banking vs Education 0.135
services".
There is no significant difference between "Education “and "Telephone Banking
Telephone Banking vs Education 0.116
services"
Quality of various banking services vs Education
Comparison P - Value Inference
Reliability vs Education 5.598 There is no significant difference between "Education" and "Reliability".
Responsiveness vs Education 0.508 There is no significant difference between "Education" and “Responsiveness".
Assurance vs Education 0.192 There is no significant difference between "Education" and “Assurance ".
Efficiency vs Education 0.583 There is no significant difference between "Education" and “Efficiency".
Accuracy vs Education 0.574 There is no significant difference between "Education"and “Accuracy".
There is no significant difference between "Education"
Security vs Education 0.148
And"Security".
Easy and convenient banking vs There is no significant difference between "Education"and "Easy and convenient
0.0661
Education banking".
Customer Service vs Education 0.67 There is no significant difference between "Education"and"Customer Service".

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Comparative Study between Private Sector and Public Sector Banks in the Adoption of Technology….

From the above tables, we conclude that there is no significant difference between Education Vs banking
services, Satisfaction on technology and Quality of various banking servicesexcept the Internet Banking in
banking services.
We used ANOVA to test the significant difference between ProfessionvsBanking Services, Satisfaction on
technology and Quality of various banking services.

Table 5: Professionvs Banking Services, Satisfaction on technology and Quality of various banking services.
Null Hypothesis H0:There is no significant difference between Profession and Branch banking
There is no significant difference between Profession and Satisfaction on technology usage
There is no significant difference between Profession and Quality of various banking services
Banking Services vs Profession
Comparison P - Value Inference
Branch banking vs Profession 0.782 There is no significant difference between "Profession" and "Branch banking"
ATM vs Profession 0.146 There is no significant difference between "Profession" and "ATM".
Internet Banking vs Profession 0.0367 There is a significant difference between "Profession" and "Internet Banking".
Telephone banking vs Profession 0.957 There is no significant difference between "Profession" and "Telephone banking".
Satisfaction on technology usage vs Profession
Comparison P - Value Inference
ATM Service vs Profession 0.901 There is no significant difference between "Profession" and "ATM Service".
Internet banking services vs There is no significant difference between "Profession" and "Internet banking
Profession 0.535 services".
There is a significant difference between "Profession" and "Telephone Banking
Telephone Banking vs Profession
0.037 services"
Quality of various banking services vs Profession
Comparison P - Value Inference
Reliability vs Profession 0.731 There is no significant difference between "Profession" and "Reliability".
Responsiveness vs Profession 0.953 There is no significant difference between "Profession"and “Responsiveness".
Assurance vs Profession 0.754 There is no significant difference between "Profession" and “Assurance ".
Comparison P - Value Inference
Efficiency vs Profession 0.0907 There is no significant difference between "Profession" and “Efficiency".
Accuracy vs Profession 0.279 There is no significant difference between "Profession" and “Accuracy".
Security vs Profession 0.566 There is no significant difference between "Profession" and “Security".
Easy and convenient banking vs There is no significant difference between "Profession” and “Easy and convenient
Profession 0.419 banking".
Customer Service vs Profession 0.501 There is no significant difference between "Profession” and "Customer Service".

From the above tables, we conclude that there is no significant difference between Profession Vs banking
services, Satisfaction on technology and Quality of various banking servicesexcept the Internet Banking in
banking services and Telephone Banking in satisfaction on technology.
We used the Chi-square test to test the association between the contribution of new technology to the success of
banks vs Gender, Age, Education, Profession, Monthly Income, Status of Usage, Advanced technology.

Table 6: New technology to the success of banks vs Gender, Age, Education, Profession,
Monthly Income, Status of Usage, Public and Private Banks.
The contribution of new technology to the success of banks
Comparison P - Value Inference
There is no associationbetween "Gender" and "The contribution of new
Gender 0.6835
technology to the success of banks "
There is no associationbetween "Age" and "The contribution of new technology
Age 0.5055
to the success of banks "
There is an association between "Education" and "The contribution of new
Education 6.75E-06
technology to the success of banks "
There is an association between "Profession" and "The contribution of new
Profession 0.03241
technology to the success of banks "
There is no associationbetween "Monthly Income" and "The contribution of
Monthly Income 0.2134
new technology to the success of banks "
There is no associationbetween "Status of Usage" and "The contribution of new
Status of Usage 0.9379
technology to the success of banks "
There is no associationbetweenPublic and private banks with respect to The
Public and Private banks 0.6509
contribution of new technology to the success of banks.

From the above table, we conclude that there is no association between the contribution of new
technology to the success of banks Vs Gender, Age, Monthly Income, Status of Usage, Public and Private
Banksexcept Education and Profession.

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Comparative Study between Private Sector and Public Sector Banks in the Adoption of Technology….

IV. Suggestions:
Private and Public Banks provide precious services to the general public and also to the industry. Not
the only variety of services and profit are important, but simultaneously the quality of services, the cost of
services and safety of public money is also important. During the course of research a lot of problems of
financial nature and non-financial nature, have been emerged. The problem of depositors, the problems of
borrowers, the problems of employees, the problem of management included among them. These problems are
in detail at appropriate places.

1. All the banks must have ATM facilities. It will be better to have networking ATM system i.e. if it is not
possible to install ATMs in all parts of the city there should be tied up and other banks. Presently, some
banks are doing the same
2. There should be the suitable recruitment of more officers in the public sector banks so that the branches,
which are really understaffed and overburdened, become systematically sufficient.
3. There should be the appropriate recruitment of more officers in the public sector banks so that the branches,
which are really understaffed and overburdened, become systematically sufficient.

RESULT:
From the above analysis, we conclude that
1. There is a significant difference between Public and Private Banks with respect to Internet
Banking.
2. There is a significant difference between "Age" and "Internet Banking".
3. There is a significant difference between "Age" and “Telephone Banking services"
4. There is a significant difference between "Education" and "Internet Banking
5. There is a significant difference between "Profession” and "Internet Banking". Telephone banking vs
Profession
6. There is a significant difference between "Profession” and “Telephone Banking services" Education
7. There is an association between "Education" and "The contribution of new technology to the
success of banks”
8. There is an association between "Profession" and "The contribution of new technology to the
success of banks”

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