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Service quality in the retail banking sector-A study of selected public and new
Indian private sector banks in India

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 International Journal of Applied Research 2016; 2(6): 598-603

ISSN Print: 2394-7500

ISSN Online: 2394-5869
Impact Factor: 5.2
Service quality in the retail banking sector - A study of
IJAR 2016; 2(6): 598-603 selected public and new Indian private sector banks in
www.allresearchjournal.com
Received: 12-04-2016
Accepted: 25-05-2016
India
Aditi Baghla
Assistant Prof. Dept. of
Aditi Baghla and Dr. Amandeep Garai
Management, D.A.V College,
Abohar, Punjab, India. Abstract
Economic prosperity has changed consumer demographics and technological factors have made
Dr. Amandeep Garai consumers demand for better quality and efficient service. The service industry is becoming major
Dean, Dept. of Management contributor to the economy of many countries which were earlier dependent on the manufacturing
Guru Kashi University, sector. Service industry particularly the banking sector is not left behind in the competition. Banking
Talwandi Sabo, Punjab, India.
industry has been highly commoditized. To be in business, every retail bank should have competitive
difference that can be realized to a great extent through customer service excellence. The aim of retail
banking industry is to satisfy customers and deepen their relationships. This can be achieved by taking
the benefits of every cross-selling and up-selling opportunity. The availability of advanced technologies
will help in boosting the cross-selling, increase customer retention and differentiate the brands in the
retail banking sector.
This empirical study assesses the current status of retail banking in service sector with special
references to Banking Sector. The study focuses on service quality parameters and customer
satisfaction. On the basis of an empirical study which was conducted in Malwa Punjab, the study
concludes that all the service quality parameters play a vital role in customer satisfaction.

Keywords: Retail Banking, Service Quality, Customer Satisfaction.

Introduction
The banking system in India is significantly different from that of other Asian Nations
because of the country’s unique geographic, social and economic characteristics. India has a
large population and land size, a diverse culture and extreme disparities in income, which are
marked among its regions. There are high levels of literacy among a large percentage of its
population, but at the same time, the country has a large reservoir of managerial and
technologically advanced talents between about 30-30% of the population reside in metro
and urban cities and the rest is spread in several semi urban and rural centres.
These features are reflected in the structure, size and diversity of the country’s banking and
financial sector. Until now, banking is generally understood as a place where financial
services are offered viz. Checking, savings, and providing credit to the customers.
Cut throat competition and highly stressed profits have introduced the new marketing
practices in the Indian banking sector and has also brought the customer satisfaction to the
centre of the focus. It has become very important for the banks to retain their existing
customer base as well as to enlarge the same. As the numbers of banks are increasing;
customers’ expectations of service quality is growing. It has become imperative to measure
the service quality of the bank so that the service providers can assess their level of service
quality and identify the quality gaps for improvements. Service quality is seen to be one of
the main determinants of customer satisfaction. Product differentiation is impossible in a
competitive environment like the banking industry. Banks everywhere are delivering the
Correspondence same products. Thus, bank management tends to differentiate their firm from competitors
Aditi Baghla
Assistant Prof. Dept. of through service quality. Service quality is an imperative element impacting customers’
Management, D.A.V College, satisfaction level in the banking industry. In banking, quality is a multi-variable concept,
Abohar, Punjab, India. which includes differing types of convenience, reliability, services portfolio, and critically,
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the staff delivering the service. Process of service purchase 12(6) (a) of the act. As on 30th June 1999, there were 300
and delivery is very complex for both customer and seller. scheduled banks in India having a total network of 64, 918
Over the last few decades, researchers have been coming up branches. The scheduled commercial banks in India comprise
with different structure in regard to various dimensions of state bank of India its associates (8), nationalized banks (19),
service quality. Technical-functional quality and image model foreign banks (45), private sector banks (32), co-operative
by Gronroos (1984); GAP model by parasuraman et al. banks and regional rural banks.
(1985); the P-C-P attributes (pivotal that is output, core and “Non –scheduled bank in India means a banking company as
peripheral) model by Philip and Hazlett (1997); internal defined in clause (c) of section 5 of the banking regulation
service quality involving internal customer and internal act, 1949 (10 of 1949), which is not a scheduled bank”. Banks
suppliers modal by frost and Kumar (2000) have been in India can also be classified in a different way:
developed in order to find the determinants of the concept of 1. Public sector banks
service quality as well as appropriate quality measurement 2. Private sector banks
techniques. But SERVQUAL and SERVPERF remain widely 3. Foreign banks
used scales of service quality. This study proposes to test 4. Regional rural banks (RRBs)
dimensionality of a widely used scale service quality and
service performance and their significant dimensions in Indian Retail Banking: Operational definition
context. “Retail banking refers to banking in which banking
institutions execute transactions directly with consumers
Public Sector Banks: India is the largest country in South rather than corporations or other entities" (Smitha
Asia with a huge financial system characterized by many and Ramachandran 2008) [14].
varied financial institutions and instruments. Indian banking Retail banking is when a bank executes transactions directly
sector was well developed even prior to its political with consumers, rather than corporations or other banks.
independence in 1947. By the 1960’s Indian banking industry Services offered include savings and traditional accounts,
has become an important tool to facilitate the development of mortgages, personal loans, debit cards and credit cards.
the Indian economy. The nationalization of banks in India
took place in 1969 by Mrs. Indira Gandhi (prime minister). In Service Quality: Quality of service is an intangible and
July 1969, 14 major commercial banks were nationalized multi-dimensional feature. Ascertainment of it requires
followed by 6 more in 1980. The major objective behind talking all of its conceivable dimension into consideration.
nationalization was to spread banking infrastructure in rural This section identifies and delineates the different dimensions
areas and make available cheap finance to Indian farmers. of “service quality”. This significant attributes that can reflect
Before 1969, State Bank of India (SBI) was the only public the customers’ perception with regard to service quality in
sector bank in India. Despite the entry of many new domestic retail banking are discussed here. An elaborate explanation of
and foreign private banks since liberalization, public sector each attributes of service quality dimension is also presented
banks continue to dominate the commercial banking industry in this section.
and Government of India controlled around 91% of the Prior to proceeding to deal with the dimensions of service
banking business in 1991.At the end of March 2012, there quality, a conceptual discussion of ‘quality’ and ‘service’ and
were 27 public sector banks in India, comprising of State the ‘service quality’ significant in relation to banks will be
Bank of India and its six associate banks and 20 nationalized pertinent.
banks (RBI 2012 reports). Researcher would focus on five top
selected Public sector banks (According to the RBI 2012 Service quality in banks: Service quality is one of the
report). critical success factors that influence the competitiveness of
an organization. A bank can difference itself from competitors
New Indian Private Sector Banks: In the early 1990s, by providing high quality service. Service quality is one of the
Narasimha Rao Government embarked on a policy of most attractive areas for researches over the last decade in the
liberalization and gave licenses to a small number of private retail banking sector. This study investigates the factors that
banks, which came to be known as ‘New Generation tech enable banks to attract and maintain their customers. In India,
Savvy banks’ which included banks such as UTI Bank (now customers in the banking sector are in a strong bargaining
named as AXIS Bank) the first of such new generation banks position due to the significant growth of banks. Therefore
to be set up), ICICI Bank and HDFC Bank (Sourabh Sharma, banks have to provide, service carefully because of the cut
K.S Thakur 2011). Banking sector contribution in Indian GDP throat competition among the banks. Banks have to improve
is approximately 15% in 2011. Researcher would focus on the service level continuously. There is no guarantee that what
five top selected banks from Private sector (According to the is excellent service today is also applicable for tomorrow. To
RBI 2012 report). New Indian Private Banks have played a survive in the competitive banking industry, banks have to
major role in the development of Indian banking industry. develop new strategies which will satisfy their customer. That
They have made banking more efficient and customer is why in this competitive banking environment, customer
friendly. In the process they have jolted public sector banks satisfaction is considered as the essence of success. High
out of complacency and forced them to become more customer satisfaction is important in maintaining a loyal
competitive. customer base. High quality of service will result in high
customer satisfaction and increase customer loyalty.
Current banking structure: Banks in India can be Customer satisfaction is the outcome of service quality.
categorized into scheduled and non-scheduled banks.
Scheduled banks in India constitute those banks, which have Review of Literature: In any research study, the problem is
been includes in the second schedule of reserve banks of India formulated after a thorough review of literature related to the
(RBI) act, 1934. RBI in turn includes only those banks in this problem is carried out. It is felt necessary to probe into the
schedule which satisfy the criteria laid down vide section banking service. For the purpose the researcher has referred to

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multifarious journals, books, internet, previous studies, etc., bridging this gap. It is devoted exclusively to retail banking
which are all connected to the nature of the problem chosen sector, analyses and examines the products and services
by her. Here, through literature review, the various aspects of offered by these sectors and assesses the quality of services
service quality in retail banking, customers satisfaction and rendered by bank in this sector. Since the retail banking is
customer loyalty as well as the relationship among them as shared by both public sector and new Indian private sector
postulated by earlier researcher are described. banks, a comparative analysis is made of the performance of
Smith Ramchandran (2008) [14] in this paper entitled as, banks under both sectors on the basis of various dimensions
“customer management in retail banking: an overview” of service quality.
studies the concept of retail banking and it is becoming
customer-driven. The study focused on the role of information Research Design
technology in the growth and future of retail banking. The Instruments: The major goal of this study is to determine the
issues and operational challenges like customer satisfaction Malwa Punjab customers perception of service quality and the
and retention, customer acquisition, competitive pressure to possible effects on consumer satisfaction in retail banking.
deliver the new product & services rapidly to market are the Data collection instrument consists of following parts;
growing need for customer retention management. 1. Demographic information of the respondents,
E Mubarak Ali, G.S David Sam Jaykumar and P L Senthil 2. Bank service quality questionnaire executed on the
(May 2011) investigated into the service quality of Indian respondents and employees.
Bank in Thanjavur District where the five dimensions of the
SERVQUAL instrument along with demographic and rational Scope of the study: The study is confined to selected cities of
profile were tested using exploratory analysis. Confirmatory Malwa Punjab (Fazilka, Shri Mukatsar Sahib, Abohar,
Multiple Regression Analysis was the statistical tool used Malout, Bathinda, Dhanola, Kotakpura, Gidderbaha). Banks
analyze the contribution of various dimensions to the overall providing service outside the same are not covered in this
service quality. And then the 22 items of the SERVQUAL study. Foreign banks and cooperative banks are beyond the
were put to exploratory factor analysis so as to reduce the purview of the study. Though there are more number of
same and extract the most significant ones to the service service quality dimensions, five familiar service quality
quality to and the conclusions reinforced the importance of dimensions namely tangibility, reliability, empathy, assurance
‘empathy’ as the key factor to influence and enhance and responsiveness only are analysis in this study. Moreover,
customer loyalty. the study is confined to five public sector banks namely State
Fatima Holy Ghost and Edwin Gnanadhas (2011) [13] Bank of India, Bank of Baroda, Punjab National Bank, Bank
conducted a study to identify customers’ perception on of India, Canara bank and five new Indian private sector
service quality factors; and to analyze the impact of banks namely ICICI bank, HDFC Bank, Axis Bank, Yes
perception on service quality factors in commercial banks Bank, Kotak Mahindra Bank.
among the different groups of customers, based on their
demographics. The primary data were collected through the Objectives of the Study
structured questionnaire. By adopting purposive sampling, 1. To identify and analyze various variables related to
715 customers were selected for this study. Out of 715 service quality of retail banking products influencing the
customers, only 43.64 per cent of the customers responded to level of customer satisfaction in select Public and New
the questionnaire. The study concluded that there is a close Indian private sector bank.
link between customers’ perception on the service quality 2. To suggest possible measures in the light of problems, if
factors and customer satisfaction. any, how to mould these challenges into opportunities.
Karthikeyan and Mayilvaganan (2011) in their study stated
that banks cannot exist without customers. In service sector Hypotheses: Based on proposed objectives mentioned earlier,
like bank, customer service should not only be a critical a hypothesis is developed to empirically address the research
function, but a way of life also. Customer satisfaction should in question.
be the focal point. That alone serves the banks’ objective of H01: There is no strong association between service quality
maximization of profit. It is obvious that a bank cannot think variables and customer satisfaction.
of making profit without customers. A customer assesses the
quality of service delivery and the output delivery after a Research Methodology: The study bases itself on primary
service is rendered. There is always bound to be a gap data collected by using the SERVQUAL model for
between the quality of service which is expected and the ascertaining the service quality of retail banking in India. The
quality of service that is rendered. Parasuram, Zeithaml and information has been elicited through a field survey by means
Berry have identified five dimensions of service quality: of a well-designed questionnaire comprising of queries on the
tangibles, reliability, responsiveness, assurance and empathy. various service quality attributes and their dimension as
They assessed the quality of service delivery and identified identified and contained in the SERVQUAL. The
service gap to offer suggestions for the purpose of minimizing questionnaire has been administered on a randomly selected
service gap. sample of customers availing retail banking service from the
private and public sector Indian banks. The spread of survey
Research Gap: The review of literature thus reveals a gap in covers four districts of the State of Punjab.
so far as no study comprehensively and specifically deals with
the retail banking segments in India both in the public and Population: Public & New Indian private Sector banks of
new Indian private sector banks. Nor does any work reviewed Malwa Punjab (Customer and Banker).
above tried to examine the comparative performance of public
sector banks and new Indian private sector banks on the Sample Size: 400 Customers from Public & New Indian
service quality dimensions in the context of Indian banking private Sector banks and 50 Employees in total 5 from each
industry. The present study is an attempt in the direction of Bank.

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International Journal of Applied Research

Sources of data: The sources from where one can get the standard error of the mean (the standard deviation of the
required information needed to pursue research and to meet sampling distribution of means) is .072.
the objectives of study are of two types, viz, primary sources As shown in table (4.1) the highest mean is of the reliability
and secondary sources. dimension whereas the lowest mean of Empathy dimension.
There is small variation in the mean score of reliability,
Response: Customers of the banks gave a highly encouraging responsiveness & assurance.
response. About 517 questionnaire have been distributed out The following diagram represents the mean values of all the
to cover the sample size of 500 out of which 400 completely five dimensions.
filled questionnaire have been received from the different
customers of the banks. Table 4.1 One-Sample Statistics
Std. Std. Error
Period of study: Since this study is mainly based on primary N Mean Rank
Deviation Mean
data, it was collected for a period of nine months from 1 st Jan Reliability 400 5.63 1st 1.258 .063
2015 to September 2015. Responsiveness 400 5.37 3rd 1.182 .059
Assurance 400 5.53 2nd 1.199 .060
Data Analysis and Interpretation: The present section is Empathy 400 5.14 5th 1.435 .072
accordingly ear-marked for collection of data on the basis of Tangibility 400 5.29 4th 1.305 .065
SERVQUAL Dimensions and benchmarks set in the Source: computed from primary data
foregoing section to ascertain service quality in retail banking
rendered by public and new Indian private sector banks. The The second part of the output gives the value of the statistical
analysis and interpretation of data with the help of statistical test:
tools has also been carried out in this section. On the basis of  Test Value: The number we entered as the test value in
logical inferences drawn from the analysis and interpretation the One-Sample T Test window.
of facts and figures, the hypotheses formulated for the study  t Statistic: The test statistic of the one-sample t test,
have been tested at the end. denoted t.
Hypothesis 1:  df: The degrees of freedom for the test. For a one-
H0: There is no strong association between service quality sample t test, df = n - 1; so here, df = 400 - 1 = 399.
variables and customer satisfaction.  Sig. (2-tailed): The two-tailed p-value corresponding to
Ha: There is a strong association between service quality the test statistic.
variables and customer satisfaction.  Mean Difference: The difference between the
To determine the mean value of collected data with different "observed" sample mean (from the One Sample Statistics
dimensions is presented below to compare the mean values, box) and the "expected" mean (the specified test value
the mean value analysis of each dimension is helpful to (A)). The sign of the mean difference corresponds to the
compare the various dimensions. The findings and statistical sign of the t value (B). The positive t value in this
analysis for this part one illustrated in the following table example indicates that the mean height of the sample is
(4.1) greater than the hypothesized value.
As shown in table (4.1) it is found that there positive attitude  Confidence Interval for the Difference: The confidence
towards all question but with different mean values in each interval for the difference between the specified test value
dimension. and the sample mean.
Dimension 1-Reliability
This output tells us that we have 400 observations (n), the Dimension 1-Reliability
mean number of respondents is 5.63(reliability) and the The second column of the output gives us the t-test value:
standard deviation of the respondents is 1.258. The standard 89.522. The third column tells us that this t-test has 399
error of the mean (the standard deviation of the sampling degree of freedom (400-1=399). The fourth column t-test tells
distribution of means) is .063. us the two tailed significance (the 2-tailed p value).
Dimension 2-Assurance: Moving from left to right you are presented with the observed
The mean number of respondents is 5.53 in case of assurance t-value (“t” column), the degree of freedom (“df”) and the
and the standard deviation of the respondents in the same is statistical significance (p-value) (“sig. (2-tailed)”) of the one
1.199. The standard error of the mean (the standard deviation sample t-test. The p- value is .000 which is less than .05.
of the sampling distribution of means) is .060. Therefore, it can be concluded that the population means are
Dimension 3-Responciveness statistically significantly different. If p>.05 the different
In case of responsiveness, the mean number of respondents is between the sample estimated population mean and the
5.37(responsiveness) and the standard deviation of the comparison population mean would not be statically
respondents is 1.182. The standard error of the mean (the significantly different. Hence we can reject the null
standard deviation of the sampling distribution of means) is hypothesis and accept the alternate hypothesis.
.059. Dimension 2- Responsiveness:
Dimension-4 Tangibles The second column of the output gives us the t-test value:
This output tells us that we have 400 observations (n), the 90.902. The third column tells us that this t-test has 399
mean number of respondents is 5.29 (Tangibility) and the degree of freedom (400-1=399). The fourth column t-test tells
standard deviation of the respondents is 1.305. The standard us the two tailed significance (the 2-tailed p value).
error of the mean (the standard deviation of the sampling Moving from left to right you are presented with the observed
distribution of means) is .065. t-value (“t” column), the degree of freedom (“df”) and the
Dimension-5 Empathy statistical significance (p-value) (“sig. (2-tailed)”) of the one
The mean number of respondents is 5.14 in case of Empathy sample t-test. The p- value is .000 which is less than .05.
and the standard deviation of the respondents is 1.435. The Therefore, it can be concluded that the population means are
statistically significantly different. If p>.05 the different
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International Journal of Applied Research

between the sample estimated population mean and the Moving from left to right you are presented with the observed
comparison population mean would not be statically t-value (“t” column), the degree of freedom (“df”) and the
significantly different. Hence we can reject the null statistical significance (p-value) (“sig. (2-tailed)”) of the one
hypothesis and accept the alternate hypothesis. sample t-test. The p- value is .000 which is less than .05.
Therefore, it can be concluded that the population means are
Dimension 3 - Assurance statistically significantly different. If p>.05 the different
The second column of the output gives us the t-test value: between the sample estimated population mean and the
92.241. The third column tells us that this t-test has 399 comparison population mean would not be statically
degree of freedom (400-1=399). The fourth column t-test tells significantly different. Hence we can reject the null
us the two tailed significance (the 2-tailed p value). hypothesis and accept the alternate hypothesis.
Moving from left to right you are presented with the observed
t-value (“t” column), the degree of freedom (“df”) and the Dimension 5-Tangibility
statistical significance (p-value) (“sig. (2-tailed)”) of the one The second column of the output gives us the t-test value:
sample t-test. The p- value is .000 which is less than .05. 81.009. The third column tells us that this t-test has 399
Therefore, it can be concluded that the population means are degree of freedom (400-1=399). The fourth column t-test tells
statistically significantly different. If p>.05 the different us the two tailed significance (the 2-tailed p value).
between the sample estimated population mean and the Moving from left to right you are presented with the observed
comparison population mean would not be statically t-value (“t” column), the degree of freedom (“df”) and the
significantly different. Hence we can reject the null statistical significance (p-value) (“sig. (2-tailed)”) of the one
hypothesis and accept the alternate hypothesis. sample t-test. The p- value is .000 which is less than .05.
Therefore, it can be concluded that the population means are
Dimension 4-Empathy statistically significantly different. If p>.05 the different
The second column of the output gives us the t-test value: between the sample estimated population mean and the
71.611. The third column tells us that this t-test has 399 comparison population mean would not be statically
degree of freedom (400-1=399). The fourth column t-test tells significantly different. Hence we can reject the null
us the two tailed significance (the 2-tailed p value). hypothesis and accept the alternate hypothesis.

Table 4.2 One-Sample Test

Test Value = 0
95% Confidence Interval of the Difference
T Df Sig. (2-tailed) Mean Difference
Lower Upper
Reliability 89.522 399 .000 5.630 5.51 5.75
Responsiveness 90.902 399 .000 5.373 5.26 5.49
Assurance 92.241 399 .000 5.530 5.41 5.65
Empathy 71.611 399 .000 5.138 5.00 5.28
Tangibility 81.009 399 .000 5.288 5.16 5.42
Source: computed from primary data

Summary of tested hypothesis: Hence we can conclude that banking services. This is just because female are entering
null hypothesis is rejected in all the dimensions of service into the corporate environment.
quality and alternate hypothesis is accepted. So we can say 2. The reliability of six dimensions gets confirmed from the
that there is a strong association between service quality values since the reliability coefficients are higher than the
variables and customer satisfaction. standard minimum of 0.70 in each dimension. The overall
composite reliability of the variables is also higher than
Table 4.3: H0: There is no strong association between service the minimum threshold of 0.7 that is 0.932.
quality variables and customer satisfaction. 3. To study the relationship between service quality
Dimensions Sig. (2-tailed) Test results perceptions and customer satisfaction regarding the
Reliability .000 Null hypothesis rejected services offered by the banks, one sample t- test analysis
Responsiveness .000 Null hypothesis rejected is performed on the dataset. The result shows that there is
Assurance .000 Null hypothesis rejected a strong relationship between service quality and
Empathy .000 Null hypothesis rejected customer satisfaction. Null hypothesis is rejected in all
Tangibility .000 Null hypothesis rejected the dimensions of service quality and alternate hypothesis
Over all Null hypothesis rejected is accepted. So we can say that there is a strong
Source: computed from primary data association between service quality variables and
customer satisfaction.
Findings and Conclusion 4. It is clear from the collected data that the variables such
Findings: In research service quality gaps are identified with as layout of the bank, interior of the bank, promotional
the help of 31 variable constructs designed by Parasuraman, brochures, parking space outside the bank have turned
namely Tangibles, Reliability, Responsiveness, Assurance out to be significant and hence would reduce the
and Empathy to measure customer satisfaction. satisfaction level of the respondents in the dimension of
The important findings of the present study are summarized tangibility. While the dressing mannerism, written
below: material, technology and quality of stationery influences
1. It is evident from the collected data that around 49.0% of the good level of satisfaction, banks should take utmost
the respondents are male and 51% of them are female. care to solve the problems and satisfy the respondents
When compared to the male, 51% females were using a from all aspects and increase the level of satisfaction
pertaining to the dimension of tangibility in public sector
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International Journal of Applied Research

banks. Hence we can say that there is no significant 5. Srivatsa HS, Srinivasan R. Banking Psychographics: An
difference in working environment of public and new Indian Empirical Study. International journal of business
Indian private sector banks on the parameters of dressing research, New Delhi, 2007.
mannerism, written material, technology and quality of 6. Kern HJ. Global retail banking – changing paradigms.
stationery while there is a significant difference in Chartered financial analyst, Hyderabad. 2005; 11(10):56-
working environment of public and new Indian private 58.
sector banks on the parameters of such as layout of the 7. Sudhir M. Retail banking in India – the paradigm shift.
bank, interior of the bank, promotional brochures, Chartered financial analyst, Hyderabad. 2005; 11(2):63-
parking space outside the bank. 64.
8. Kamble S. An assessment of service quality in Indian
Conclusion retail banks. Global management review. 2008; 2(4):37-
Retail banking is the fastest growing sector of the banking 44.
industry with the key success by attending directly the needs 9. Das K, Parmar J, Sadanand VK. Customer relationship
of the end customers. It holds a glorious future in coming management (CRM) best practices and customer
years. The study is based on the comparative analysis of loyality– a study of Indian retail banking sector.
service quality dimensions both in public sector banks and European journal of social schemes Europe. 2009; 11(1).
new Indian private sector banks. The study has tried to find 10. Joshi MK. Growth of retail banking in India. Icfai
out the perception of customers regarding the various service University press, Hyderabad, 2007, 13-24.
quality dimensions (tangibles, reliability, and responsiveness, 11. Joshi MK. Customer services in retail banking in India.
assurance and empathy service quality) between public sector Icfai University press, Hyderabad, 2007, 59-68.
banks and new Indian private sector banks in retail banking. 12. Mohanty AK. Customer services in banks: An Overview.
For this purpose primary data was collected from various Professional banker, Hyderabad, 2005; 5(1).
cities of Malwa Punjab. From the analysis it has been found 13. Edwin Gyanadhas M, Fatima Holy Ghost S. Service
out that there exists a gap in the perception of customers quality in Commercial banks. Discovery publishing
regarding the service quality dimensions between public house, New Delhi, 2011, 195-210.
sector banks and new Indian private sector banks. Perception 14. Ramachandran S. Customer management in retail
of customers varies between public sector banks. The analysis banking: An Overview. ICFAI University press,
further reveals that customers of new Indian private sector Hyderabad, 2008, 4-5.
banks are highly satisfied on some parameters service quality 15. Singh SK. Impact of ATM on Customer satisfaction: A
dimension that is tangibles, reliability, responsiveness, comparative study of SBI, ICICI & HDFC bank.
empathy and assurance as compared to public sector banks. Business intelligence Journal. 2008; 2(2).
The findings of perceptions about service quality dimensions
is bases on ‘400’ respondents at random taken from the
various cities of Malwa Punjab to represent the view of the
customers about the service quality dimensions. The results of
analysis have proved that there is significant difference
between the public sector banks and new Indian private sector
banks regarding the service quality dimensions.

Recommendations for Future Research

The following are the areas of further research which the
interested researchers can pursue:
1. Impact of service quality on customer satisfaction and
customer loyalty in commercial banks.
2. A study on assessing the quality of bank services by
using the gap analysis model
3. Gap analysis in the service performance of new
generation private banks.
4. The effect of relationship quality and switching barriers
on customer loyalty in retail banks.

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commercial banks – A study. Banking finance, New
Delhi, 2007.
4. Gopinath S. Retail banking – opportunities and
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