THE IMPACT OF INFORMATION TECHNOLOGY ON THE PERFORMANCE OF BANKS IN PUNE CITY: A COMPARATIVE STUDY

Abstract

Advent of ICT has brought transformational changes in the Indian Banking Industry. Liberalisation, privatization and globalization policy and the recommendations of various committees paves the way for use of ICT in the Indian Banking sector. ICT has made the banking more easy, convenient and user friendly. It has changed the way the banks provide the services to their customers. It has also impacted the performance of the banks in all respects. The present study is modest attempt to study the impact of IT on the performance of banks operating in Pune City. The researcher has selected 5 branches each of 2 Public Sector Banks, 2 Private Sector Banks, and 2 Co-operative Sector Banks operating in Pune City and the impact of information technology on core operational areas as well as secondary operational areas. Total sample size is 1950 which includes bank customers, employees and managers/officers. The study reveals that the private banks lag behind in several aspects as compared to the nationalized and cooperative banks and there is a lot of improvement required in several areas. One cannot clearly distinguish the nationalized banks as the best performers or the cooperative banks is the best performers because there are issues that need to be taken care of in nationalized and cooperative banks also. What the study would conclude is that, for a bank to be successful there should be a proper commitment of the top-level management and at the same time the IT staff who takes care of the hardware and software infrastructure within the bank must work in harmony with the banking staff. KEY WORDS: Information Technology, E-banking, online banking, e-banking service quality, customer satisfaction, CRM