Service Quality Perceptions: A Case Study of Banking Services

Somprabh Dubey (Research Student)

Abstract
In the past, banking was concerned only with borrowing and lending activities. But at
present, banking is catering to the entire requirement of individual customers and is emerging
as a potential sector for the consistent growth of business. Customers’ retention is one of the
top priority of the banks. Many customers are not wanting but are expecting better services.
Customers have started demanding variety in banking services and their preference for
delivery channels are changing. It is true that technology has provided a unique competitive
advantage to some banks in India, as these banks have taken a lead in the use of technology
for introducing special products and services viz. Cash management, credit cards, ATMs,
Electronic Fund Transfer(EFT), Real Time Gross Settlement(RTGS), debit cards etc. But as
far as this study is concerned it is more focused on the services in the bank premises. When
banks are providing so many and adopting new techniques to satisfy their customers, they
should also try to find out whether the customers are really satisfied with their customers,
they should also try to find out whether the customers are really satisfied with their services
or not. Issues such as offering a proper reception at the counter, consideration for their time,
updating of their passbooks, speedy collection of their cheques and drafts are considered to
be of the prime importance to the most of the customers. Realizing this, the present study has
undertaken to assess the quality of services being rendered to the customers by public and
private sector banks. The main aim of this research paper is to assess and re-assess how
customers perceive banking services, what are the emerging customers’ expectations and to
study customers’ satisfaction level with banking services provided by the public and private
sector banks.

Key Words: Customer Satisfaction, Banking, Public & Private Sector, Mean, Standard
deviation, z-test.
1. Introduction:
As Indian banking sector enters the new millennium, the most crucial challenge, it has to
face, is in the realm of customers’ satisfaction. Customers’ satisfaction is an important
theoretical as well as practical issue for most marketers and consumer researchers.
Customers’ satisfaction can be considered the essence of success in today’s highly
competitive world of business. In general, satisfaction is a person’s feeling of pleasure or
disappointment resulting from comparing a product’s perceived performance in relation to
his or her expectations. If the performance falls short of expectation, the customers is
dissatisfied, if the performance matches the expectations, the customer is satisfied. If the
performance exceeds expectations, the customer is highly satisfied or delighted. Customers
become the focal point for the banking business so that bankers have to involve themselves
totally in anticipating, identifying, reciprocating and satisfying their customers in a mutually
rewarding manner. Realizing this, there is a strong feeling in the modern banks that each
individual employee working with them has to act as a marketing person who contributes to
the total satisfaction of their customers. Latest business models have attached the highest
importance to customer satisfaction for the success of an organization.

Virtually every model of the satisfaction formation process posits that feeling of satisfaction
arises when customers compare their perception of a product performance to their
expectations. Customers’ expectations are beliefs about service delivery that functions as
standards or reference points against which performance is judged. Expectations have a
central role in influencing satisfaction with services. In the banking sector expectations of the
customers have undergone a sea change with the availability of banking services to the
customers at their door steps through the help of technology.

Modern banking in India started only in the eighteenth century. The first bank in India was
established in 1770 by an agency house, Alexandra and Co. This bank was named as the
“Bank of Hindustan”. Since independence, the Indian banking system has made significant
progress. For the healthy growth of the banking system in the country Banking Regulation
Act, was passed in 1949. According to this, the Reserve Bank of India was authorized to
control the banking system in the country. The Reserve Bank of India performs all the
functions of a central bank viz. Issue of notes, banker to the state, regulation of banking
system in the country exchange control, credit control etc. It advises the government on the
formation of monetary policy, it meets the financial needs of agriculture, industry, trade and
transport, small industry etc. in the interest of the economic development of the country. It
helps in alleviating poverty, removing regional inequalities, and unemployment. At the turn
of the century, there were over a hundred schedule commercial banks, several hundred more
cooperative banks, non-banking financial companies, and other financial institutions in India.
Most of these organizations were seen to be offering Vanilla-banking services with minimal
differentiation. A few years ago, the banking industry could be classified into specific
categories like public sector, private sector, foreign banks, etc. Even at present the scenario
could not be more different. The strategic focus of the banks changed from production-
oriented to customer-oriented. The attempts of the banks to increase the number of services,
innovate new products, invest in hi-tech infrastructure and develop customer’s relationship
management systems to attract customer’s from rival banks with incentive schemes, package
services, better service quality and competitive service standards.

2. Review of literature
In view of the fact that customer’s satisfaction is indispensable in the banking organization,
many government and non-government agencies as well as individual academicians and
practitioners undertook various studies. Oliver (1980) expressed his view about customer’s
satisfaction that customer’s satisfaction is a feeling or attitude of a customer towards a
productor service after it has been used and is generally described as the full meeting of one’s
expectation. Codatte (1987) argued that customer develops norms for product performance
based on general product experience and these, rather than expectation from a brand’s
performance, determine the confirmation/ disconfirmation process. Westbrook (1991) argued
that in addition to the cognitive components, satisfaction judgments are also dependent upon
effective components as both coexist and make independent contribution to the satisfactory
judgments. Levesque (1996) conducted a study to confirm and reinforced the idea that
unsatisfactory customer service leads to a drop in customer’s satisfaction and willingness to
recommend the service to a friend. This would, in turn, lead to an increase in the rate of
switching by customers. East (1997) suggested the customer’s satisfaction is a major
outcome of marketing activities whereby it serves as a link between the various stages of
customer’s buying behaviour. If customers are satisfied with a particular service offering
after its use, then they are likely to engage in repeat purchase and try time extensions.
Researchers like Ahmad (2002), Anderson (2004), Campbell (2006), and Rajkamal (2008)
have evaluated services of the banks in term of customer’s satisfaction parameters and,
therefore, have made good contribution in the field of research in the area. However, a
human customer is a complex organism, always changing with changing times, the
preference and priorities also do not remain static which change his/her perception about the
satisfaction or dissatisfaction regarding the services he/she gets from the banks. Taking this
into consideration, the above studies lose their relevance and there is a need to conduct a
fresh study on the subject. It is against this backdrop that the present study is undertaken with
a view to fill up this gap.

3. Objectives of the Study

The main objective of the study is to determine the customer’s satisfaction in public and
private sector banks. To achieve the main objective the following are set as sub-objectives:
 To study the customer’s satisfaction in public sector banks.
 To study the customer’s satisfaction in private sector banks.
 To study comparative analysis of customer’s satisfaction in private ad public sector
banks.

4. Research Methodology - For analyzing the the Service quality perception of the
customers in relation to banks, the primary data have been collected through preparing the
questionnaire based on the various groups of customers. While conducting this study various
statistical tools have been also used viz Likert scale, z-test, hypothesis testing, mean and
standard deviation etc.
4.1- Hypotheses of the Study
The following hypotheses are proposed:
(a) To be treated on public sector banks
H 1: There exist a significant difference among the level of customer’s satisfaction in the
SBI and the PNB.
(b) To be treated on private sector banks
H 2: There exist a significant difference among the level of customer’s satisfaction in the
AXIS and the HDFC banks.
(c) To be treated on comparison.
H 3: There exists a significant difference among the level of customer’s satisfaction in the
public and private sector banks.

Sampling design: A sample of 200 respondents had been drawn from the various socio-
economic strata, at different designation and having different educational qualification and
belongs to different age-groups on the line of “Convenience Sampling” method. In this
method, the sample units are chosen primarily on the basis of the convenience to the
investigator.
The banks chosen for the study: Four banks had been chosen for the study. Two of these
banks were public sector banks namely; state Bank of India and Punjab National Bank and
two were private sector banks namely; Axis Bank and HDFC Bank.
Distribution of Customer’s Sample
Name of the Bank Number of Respondents
SBI 50
PNB 50
AXIS 50
HDFC 50
Total Sample Size 200

Data Collection: Primary data were collected from a sample of 200 respondents, chosen by
convenience sampling method. In order to collect the necessary data the researcher visited
the concerned banks and administered the questionnaire personally to the respondents. The
questionnaire was included 20 variables which determine the satisfaction of the customers of
the public and private sector banks. The views of the customers regarding their
satisfaction/dissatisfaction have been qualified on the basis of scale having five points. These
five points and their respective score values in the scale are given as under:

Points of scale Assigned Score

Very Satisfied 5
Satisfied 4
Neither satisfied nor dissatisfied 3
Dissatisfied 2
Very Dissatisfied 1

A high score in the corresponding dimension indicates a very high satisfaction of the
customers. Score in the low range indicates conversely low satisfaction of the customers.
Since the questionnaire was a survey, the dimensions selected for measuring customer’s
satisfaction have been selected as below:
1. Ability to resolve complaints
2. Responsiveness of the banks staff
3. Banking Services
4. Counter Services
5. Accounts and deposits of the banks

Techniques of data analysis: The following techniques were used to study the objectives :
1. Percentage
2. Mean
3. Standard deviation
4. Z-test
5. Analysis and Results of the Study
The analysis of data is discussed as under:
Ability to Resolve Complaints: One of the important dimensions of customer’s satisfaction is
the Ability to Resolve Customer’s Complaints. The fundamental philosophy to succeed for
all the banks would be to view complaints of customers as opportunities to do better by
turning a disgruntled customer into a satisfied one. Variables like, outcome of complaints and
handing of complaints are the important ingredients of measuring customer’s satisfaction.
The views of customers about this dimension under study are exhibited in table-1

Table 6.1: Customer’s Satisfaction with Ability to Resolve Complaints

Variables Public Sector Banks Private Sector Banks

SBI PNB AXIS HDFC
Mean St. Mean St. Mean St. Mean St. dev.
dev. dev. dev.
(a) Outcome of 4.83 0.37 3.42 0.37 3.71 0.88 3.78 1.08
Complaints
(b) Handling of 4.83 0.37 3.42 0.73 3.42 0.73 3.71 1.22
Complaints
Combined Mean/St. dev. 4.67 0.38 3.42 0.73 3.71 0.82 3.78 1.15

The Study of table 6.1 reveals that State Bank of India provides the highest satisfaction to its
customers, as the combined mean score of two variables which determine the satisfaction of
the customers on the basis of the ability to resolve complaints which is represented by the
combined mean score is 4.67. This score is in between very satisfied and satisfied. The views
expressed by the customers are consistent as the standard deviation is insignificant-0.38. The
satisfaction of customers representing the PNB lies in between satisfied and neither
satisfied/nor satisfied, mean value being 3.42. These views are consistent as the S.D. is 0.73 .

The customers of the AXIS and the HDFC banks express their level of satisfaction below
very satisfied mean value being 3.71 and 3.78 respectively. However, the score of standard
deviation show some inconsistent views of customers in case of the HDFC bank.
Further analysis of table 6.1 indicates that in case of public sector banks and private sector
banks, the outcome of complaints and handling of complaints are the equally contributed
factors towards the satisfaction of customers. This was due to the fact that customers of both
banks are satisfied with their respective banks or a few customers were made complaints to
their banks.

Responsiveness of the bank Staff : Customer’s satisfaction with bank staff refers to the
willingness of the bank employees to help customers and provide prompt services to its
customers. When you go to a bank minimum that you expect is that the employees would
attend you rather than chitchat amongst themselves.

This factor is linked to several minor ingredients of the satisfaction experienced by the
customers such as courtesy of the staff; banks employees’ willingness in helping customers ;
knowledge to perform the service; information delivery; quality of information received and
attitude of bank staff. The politeness, respect consideration and friendliness of the service
providers can be bundled into the term courtesy. Information delivery refers to keeping the
customers informed in the language they can understand. The attitude of the staff is referring
to the behaviour of officers and other employees of the respective bank towards the
customers. The response of the staff of the bank under study is exhibited in table 6.2 .

Table 6.2 : Customer’s Satisfaction regarding Responsiveness of the Bank Staff

Variables Public Sector Banks Private Sector Banks

SBI PNB AXIS HDFC
Mean St. Mean St. Mean St. Mean St.
dev. dev. dev. dev.
Courtesy of the banks 4.10 1.10 3.74 1.15 3.34 1.20 3.98 0.83
staff
Helpfulness of the bank 4.10 1.10 3.42 0.73 3.42 0.73 3.71 1.22
staff.
Knowledge of the banks 4.10 1.10 3.42 0.73 3.71 0.82 3.78 1.15
staff..
Bank information 4.10 1.10
delivery to customers.
Quality of information 4.10 1.10 3.70 0.98 2.92 1.13 3.98 0.82
received.
Attitude of the banks 4.10 1.10 3.68 1.04 3.40 1.26 3.98 0.85
staff.
Combined Mean 4.10 1.10 3.72 1.01 3.32 1.18 3.63 0.85

An investigation of table 6.2 reveals that State Bank of India provides the highest satisfaction
to its customers as the combined mean score of different variable which determine the
satisfaction of the customers on the basis of the Responsiveness of the Bank Staff which is
represented by the combined mean 4.10. The Mean score of the SBI lies in between satisfied
or very satisfied. The views expressed by the customers of the SBI are inconsistent as the
standard deviation is 1.10.

The satisfaction level of customers of the PNB, the AXIS and the HDFC banks is in between
neither satisfied/nor dissatisfied and satisfied, as mean score is 3.72,3.32 and 3.63
respectively. However the score of standard deviation of the PNB and the AXIS banks shows
some inconsistent views of the customers. As the Standard deviation score is 1.01 and 1.18
for the PNB and the AXIS banks respectively.

In private sector banks, knowledge of staff is the highly contributed factor towards
satisfaction of the customers of the AXIS bank and courtesy of the staff and quality of
information received is the highly contributed factor towards satisfaction of the customers of
the HDFC Bank.

Banking services : The variety of the product and services sold by the bank is a dominant
factor for the success of any bank. The prime aim of every bank is to provide excellent
service to their customers. The services like, ATMs card; Demand draft; cheque book; Net
banking are the important ingredients of measuring customers satisfactions. Customers
satisfaction with Banking services refers to the satisfaction level of customers with quality of
service providing by the bank. Banking services provided by the banks under study are
exhibited in table-6.3 .

Table 6.1: Customer’s Satisfaction with Ability to Resolve Complaints

Variables Public Sector Banks Private Sector Banks

SBI PNB AXIS HDFC
Mean St. Mean St. Mean St. Mean St. dev.
dev. dev. dev.
ATM Cards 3.83 1.01 4.45 0.49 3.48 1.08 4.02 0.71
Demand Drafts 3.90 0.88 4.06 0.95 3.51 1.00 4.00 0.71
Cheque Book 4.23 0.86 4.31 0.66 3.71 0.96 4.15 0.46
Net Banking 4.21 0.71 3.85 1.35 3.72 0.96 4.44 0.49
Combined Mean 4.02 0.91 4.18 0.84 3.59 1.07 2.93 0.65

The analysis of table-6.3 indicates that the Punjab National Bank provides the highest
satisfaction to its customers as the combined mean score of different variables which
determine the satisfaction of the customers on the basis of the Banking Services which is
represented by the combined mean 4.18. The mean score of the PNB lies in between satisfied
or very satisfied. The views expressed by the customers of the PNB are consistent as the
standard deviation is insignificant 0.84. In case of the SBI the satisfaction of customer lies in
between satisfied and very satisfied as the mean score is 4.02 and the views expressed by the
customers is consistent as the score of standard deviation is insignificant 0.91. In case of
private sector banks, the satisfaction of customers of the AXIS Bank is in between neither
satisfied, nor dissatisfied, and satisfied and the mean score of the HDFC Bank is in between
neither satisfied, nor dissatisfied, and dissatisfied as the mean score is 2.93.

However, the score of standard deviation of the AXIS Bank shows some inconsistent view of
customers, standard deviation is 1.07 for the AXIS Bank. ATM cards and cheque book
service are the highly contributed factors towards the satisfaction of customers in public
sector banks namely the SBI and the PNB. In private sector banks, net-banking and cheque
book services are the highly contributed factors towards satisfaction of the customers of the
AXIS and the HDFC Banks.

Speed of counter services: Customers satisfaction with counter service refers to customers
satisfaction with the time taken for deposit cash and speed of withdrawal of cash from the
bank issue a draft and speedily collection of customers cheques. All have an important role to
play in determining the satisfaction of the customers pertaining to the efficiency of the bank.
The perceptual views of customers regarding this dimension are presented in table-6.4

Table 6.4: Customer’s Satisfaction regarding Speed of counter services

Variables Public Sector Banks Private Sector Banks

SBI PNB AXIS HDFC
Mean St. Mean St. Mean St. Mean St. dev.
dev. dev. dev.
(a) Outcome of 4.83 0.37 3.42 0.37 3.71 0.88 3.78 1.08
Complaints
(b) Handling of 4.83 0.37 3.42 0.73 3.42 0.73 3.71 1.22
Complaints
Combined Mean/St. dev. 4.67 0.38 3.42 0.73 3.71 0.82 3.78 1.15

An investigation of table-6.4 indicates that the highest satisfaction of customers is provided

by the AXIS Bank as the combined mean score of different variables which determine the
satisfaction of the customers on the basis of the Speed of Counter Services which is
represented by the combined mean 3.50. The mean score of the AXIS Bank lies in between
neither satisfied, nor dissatisfied, and satisfied. The views expressed by the customers of the
AXIS Bankare inconsistent as the standard deviation is 1.09. In case of the SBI and the
HDFC Banks the mean score is in between neither satisfied, nor dissatisfied, and satisfied as
the mean value is 3.00 and 3.29 for the SBI and the HDFC banks respectively. However, the
satisfaction of customers of the PNB lies in between dissatisfied and neither satisfied, nor
dissatisfied, mean value being 2.33. The views expressed by the customers of SBI, PNB and
HDFC banks are inconsistent as the standard deviation is 1.48, 1.46 and 1.24 respectively.
Further analysis of table-6.4 indicates that in all the banks viz. SBI, PNB, AXIS and HDFC
Bank, the speed of cash deposits and cash payment are the highly contributed factors towards
the satisfaction of the customers.

Accounts and Deposit of the Bank: Customers satisfaction with Bank Accounts and
Deposits refers to the satisfaction of customers with saving account, current account and
fixed deposits of the bank. The views of customers regarding this dimension under study are
presented in table-6.5

Table 6.5 :Customer’s Satisfaction regarding Accounts and Deposit of the Banks
Variables Public Sector Banks Private Sector Banks
SBI PNB AXIS HDFC
Mean St. Mean St. Mean St. Mean St. dev.
dev. dev. dev.
Saving A/C 5.14 0.65 4.42 0.32 4.36 0.82 4.26 0.48
Current A/C 3.70 0.64 4.62 0.48 4.08 0.64 4.33 0.47
Fixed deposits A/C 3.70 0.64 4.00 0.88 4.08 0.77 3.78 0.40
Combined Mean 4.64 0.69 4.37 0.67 4.24 1.33 4.21 0.59

An introspection of table-6.5 indicates that the highest satisfaction of customers is provided

by the State Bank of India, as the combined mean score of different variables which
determine the satisfaction of the customers on the basis of the Accounts and Deposit of the
Bank which is represented by the combined mean 4.64. The mean score of the SBI lies in
between satisfied or very satisfied. The views expressed by the customers of the SBI are
consistent as the standard deviation is insignificant 0.69. The satisfaction level of customers
of the PNB, the AXIS and the HDFC Bank is in between satisfied or very satisfied as mean
score is 4.37, 4.24 and 4.21 respectively. However, the score of standard deviation of the
AXIS Bank shows some inconsistent views of customers. As the standard deviation score is
1.33 for the AXIS Bank. The findings of present study reveal that customers have the highest
 satisfaction with saving accounts of the SBI and in case of the PNB customers have
maximum satisfaction with current accounts of the bank. Similar kind of result is highlighted
by the responses of the customers of the AXIS and the HDFC banks. Customers have
maximum satisfaction with saving accounts of the AXIS Bank and current account of the
HDFC Bank.

Overall Customers satisfaction: The overall satisfaction of the customers which has been
summed up in the table-6.6 reveals that in all the banks the satisfaction level ranges between
satisfied and neither satisfied nor dissatisfied. As the overall customers satisfaction score in
SBI; PNB; AXIS and HDFC banks are 3.78, 3.55, 3.56 and 3.78 respectively.

Table 6.6: Hypotheses Testing

Dimensions SBI PNB Z AXIS HDFC Z Public Private
Value Value Sector Sector Va
Banks Banks
Mean St. Mean St. Mean St. Mean St. Mean St. Mean St.
score Dev. score Dev. score Dev. score Dev. score Dev. score Dev.
Ability 4.67 0.38 3.42 0.73 1.12 3.57 0.82 3.75 1.15 -0.91 3.99 0.92 3.69 1.05 1
toResolve
complaints
Responsivenes 4.10 1.10 3.72 1.01 1.81 3.57 0.82 3.75 1.15 -1.52 3.91 1.07 3.48 1.06 2.8
s of the banks
staff
Banking 4.02 0.91 4.18 0.84 -0.94 3.59 1.07 2.93 0.65 3.67 4.11 0.88 3.31 0.94 6.2
Service
Counter 3.00 1.48 2.33 1.46 2.31 3.50 1.09 3.29 1.24 0.91 2.62 1.48 3.40 1.18 4.2
Service
Accounts and 4.64 0.69 4.37 0.67 2.01 4.24 1.33 4.21 0.59 0.15 4.51 0.68 4.23 0.71 3.1
deposits in the
banks
Combined 3.78 1.27 3.55 1.26 0.92 3.56 1.11 3.78 1.01 1.03 3.66 1.27 3.67 1.07 0.0
mean/Standard
Deviation

A comparison of two banks viz. SBI and PNB reveals that the customers in both the banks
are somewhat close to each other. The calculated Z-value regarding ability to resolving
complaints (1.12), responsiveness of the staff (1.81) and banking services (-0.94) is less than
the table value of Z-test at 5% level of significance. Thus the alternative hypothesis that there
exists a significant difference among the level of customer’s satisfaction in the SBI and the
PNB is rejected in favour of null hypothesis. This shows that the customers of both banks
hold the similar views. However, the calculated Z-value regarding Counter service and
Accounts and deposits is greater than the critical value of Z-test that is +1.96 at 5% level of
significance. Thus, the alternative hypothesis is correct and hence accepted. In case of private
sector banks, the calculated Z-value between the mean score of the AXIS and the HDFC
banks regarding ability to resolving complaints (-0.91), responsiveness of the staff (-1.52),
counter service (0.91) and accounts and deposits (0.15) is less than the table value of Z-test at
5% level of significance. Thus the alternative hypothesis that there exists a significant
difference among the level of customer’s satisfaction in the AXIS and the HDFC banks is
rejected in favour of null hypothesis. This shows that the customers of both banks hold the
similar views. However, the calculated Z-value regarding Banking services is greater than the
table value of Z-test. Thus, the alternative hypothesis is correct and hence accepted.
As far as comparison of public sector banks and private sector banks is concerned, the
calculated Z-value between the mean score of public sector banks and private sector banks is
less than the critical value of Z-test that is +1.96 at 5% level of significance with respect to
ability to resolve complaints, thus the alternative hypothesis that there exists a significant
difference among the level of customers satisfaction in public and private sector banks is
rejected. However with respect to other dimensions of customers satisfaction, the calculated
Z-value is greater than the table value of Z-test at 5% level of satisfaction. Thus, the
alternative hypothesis is correct and hence accepted. This suggests that the customers of
public and private sector banks do not hold similar view regarding responsiveness of the
bank staff, banking services, counter services and accounts and deposits.

7. Conclusions
The banking sector in India is undergoing major changes due to competition and the advent
of technology. The customers are looking for quality services which can provide him/her
satisfaction. This study reveals the customers satisfaction level of public and private sector
banks and their comparison. The analysis of data brings out the following conclusions:
 It is evident that State Bank of India has been more sincere in solving and handling
of customers complaints in the present study.
 It is found that the employees of the SBI have been maximum courtesy with their
customers more willing to help customers, more knowledgeable in answering
customers questions and excellent in giving information to their customers.
 In public sector banks namely SBI and PNB, the knowledge of the banks staff,
helpfulness nature of bank staff and courtesy of the bank staff are highly contributed
factors towards satisfaction of the customers.
 In private sector banks, knowledge of staff is the highly contributed factor towards
satisfaction of the customers of the AXIS Bank and courtesy of the staff and quality
of information received is the highly contributed factor towards satisfaction of the
customers of the HDFC Bank.
 These finding propose that the employees of public sector banks are very attentive
towards its customers as compared to private sector banks.
 ATM cards and cheque book service are the highly contributed factors towards the
satisfaction of customers in public sector bank namely the SBI and the PNB.
 In private sector banks, Net Banking and cheque book services are the highly
contributed factors towards satisfaction of the customers of the AXIS and the HDFC
Banks.
 It is evident that public sector banks provide excellent services to its customers as
compared to private sector banks.
  It was found that proper reception at the counter and improvement in speed of
cheque deposits is badly needed by the Punjab National Bank, which will greatly
enhance the image of the said bank.
 The finding of the study proposes that customers of public sector banks are more
satisfied with their accounts and deposits of the banks than private sector banks.
It can be concluded that public sector banks provides better services to their customers than
the private sector banks. The customers of public sector banks are more satisfied with
traditional banking services such as (ATM; Demand Draft and Cheque Book Facilities) and
Bank Accounts as compared to private sector banks whereas customers of private sector
banks are more satisfied with counter services
Such as cash deposit, cash payment, issue a draft, cheque payment and cheque deposit
provided by the bank.

8. Suggestions

Satisfaction of needs and wants of the customers is the major role of effective marketing in
the banks. The bank must commit the best possible customers’ services.
During the working on this study, the investigator felt some area of improvement in the
banks. There are some suggestions to improve the banking services, which are given below:

 Public sector banks need to improve their counter services.

 Customers’ grievances should be redressed speedily and customers’ satisfaction should

always be on the top priority.

 Employees should be given training to improve their attitude.

 Banks should arrange meetings with their customers to promptness in providing the
services.
 It is advisable for all the banks under study to keep a separate complaint-cum-suggestion
box/book to enable customers to offer suggestions and complaints.

 The working hours of the banks must be as flexible as possible. The operating hours of
banks must be extended depending upon the needs and desires of customers.

 Provision for separate inquiry counter at all the banks would be very useful especially to
the illiterate customers. Efficient, knowledgeable, customers, competent and versatile
front-line staff is the prime requirement for all the banks surveyed.

 As so many customers still using ATM cards, so there should be required more ATM
machines for the convenience of the customers.

 The banks must try to find out the specific needs of different customers, so that suitable
package of services car be made available to them.

It is believed that the suggestions offered above, if properly implemented, will go a long way
in ensuring Customers’ Satisfaction in the banks under study.
6. Limitation of the Study
The findings of the study are purely an outcome of the responses given by the sample
respondents of the four banks considered for the study. The customer’s responses are subject
to personal bias. The study has been made in the city of Moradabad alone, as such
generalization of the study findings need enough care and caution.
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