Int. J. of Electronic Finance   »   2010 Vol.4, No.1



Title: Experience in internet banking and performance of banks


Author: Pooja Malhotra, Balwinder Singh


Geeta Institute of Management and Technology, Kurukshetra, Haryana, India.
Guru Nanak Dev University, Amritsar, Punjab, India


Abstract: This paper seeks to examine the impact of internet banking on banks' performance and also whether, among banks offering internet banking, those that have offered it for a relatively long time outperformed those that only recently began to offer it. Using the data on financial performance of 82 scheduled commercial banks, during the period of 1998-2007, the univariate analysis indicates that experienced internet banks are larger banks and have better operating efficiency ratios and rely less on traditional source of financing in comparison to inexperienced internet banks as well as non-internet banks. In almost all other variables, there existed no statistically significant difference in the performance of experienced and inexperienced internet banks. The multiple regression results also reveal that the profitability and experience in offering of internet banking does not have any significant association. Hence, in the Indian banking context, experience in offering internet banking does not have any impact on banks' performance.


Keywords: banks; internet banking; information technology; e-finance; electronic finance; bank performance; India; electronic banking; online banking; e-banking; profitability.


DOI: 10.1504/IJEF.2010.030786


Int. J. of Electronic Finance, 2010 Vol.4, No.1, pp.64 - 83


Available online: 05 Jan 2010



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