A Study of the Impact of Information Technology on the Performance of Scheduled Commercial Banks in India

Abstract

In this thesis, an attempt has been made to investigate the impact of Information Technology newline(IT) on the performance of banks in India. In past one and a half decade, banks in India have newlineinvested heavily in the technology such as telebanking, mobile banking, net banking, newlineautomated teller machines (ATMs), credit cards, debit cards, smart cards, customer newlinerelationship management (CRM) software, electronic payment systems and data newlinewarehousing and data mining solutions, to bring improvements in; quality of customer newlineservices, scale and specialization in products, alternative sources of income particularly from newlinefee-based services, geographical reach through communication networks and electronic newlinedelivery channels, risk management practices, housekeeping, internal control systems and newlineregulatory compliance, cost efficiencies and scale economies. Heavy investments in IT have newlinebeen made by the banks in the expectation of improvement in their performance. But newlineimprovement in the performance depends upon, differences in the deployment, use and newlineeffectiveness of IT. In view of this it becomes pertinent to identify, those banks which have newlinedeployed and used the IT effectively from the rest of those which failed to do so. At the same newlinetime it also becomes important to find out the factors on account of which these banks newlinebecame IT efficient. It becomes all the more important to address these issues for public newlinesector banks due to the dominant position enjoyed by these banks and their contribution newlinetowards socio-economic development of the country. Present study addresses these issues as newlinewell suggest a model of IT success for the public sector banks of India. newlineThe present research has four broad objectives, namely; to study the extent of IT newlinedeployment in public sector banks, to compare the efficiency of public sector banks with newlinerespect to information technology deployment and their categorization, to measure the newlineidentified IT success factors for each category of public sector banks and compare different categories of PSBs...