Ilkogretim Online - Elementary Education Online, Year; Vol 20 (Issue 5): pp.

2005-2013
http://ilkogretim-online.org
doi: 10.17051/ilkonline.2021.05.220

CUSTOMER PERCEPTION TOWARDS SERVICES PROVIDED BY PUBLIC

SECTOR AND PRIVATE SECTOR BANKS: A COMPARATIVE STUDY
Manidayanand, Research Scholar, Thanthai Hans Roever College of Arts & Science, Elambalur (Post), Perambalur - 621
212
Dr. K. Neelamegam, Research Advisor and Convener Assistant Professor in Commerce, Government Arts and Science
College, Veppeanthattai, Perambalur- 621116

ABSTRACT- Banking is one of the oldest professions known to mankind. It has undergone many a transition and
internet banking is the latest in the list of such transformations. Banking is a key industry in the service sector.
Customer satisfaction is the state of mind that customers have about a bank when their expectations have been met
or exceeded over lifetime of the service. Nonetheless, enhanced technology was deployed to extend the back-
office to the front office (integrated system). This extension helps to enable the banking industry to offer their
services via the Internet. A study of services provided by ICICI bank and State Bank of India is carried out and
customers’ perception is compared.

Keywords: Customer Perception, Bank Services

I. INTRODUCTION
Banking is a key industry in the service sector and it will not be an overwhelming to call it the financial
nerve centre of the economy. The Indian banking system has the largest branch network spread over a
vast area in India. In the era of stiff competition, the survival of any bank depends upon the satisfied
customers.. Clearly study reveals customer satisfaction can help any bank to identify opportunities for
services innovation and serve as the basis for performance appraisal and reward system. In order to
retain customers banks have to provide better quality services. A study of services provided by ICICI
bank and State Bank of India is carried out and customers’ perception is compared. It is appropriate to study
the customers’ perception towards the services since banks have offered more services. Hence, the present
study was formulated with specific objectives to appraise and compare the customers’ perception scenario
in the Public Sector Banks and Private Sector Banks.
II. SCOPE OF STUDY
The scope of the Banking services is vast and elaborative. This present work attempts to study the customer’s
perception towards the banking services.
The study is being carried out with a special reference to Public Sector Banks and Private Sector Banks of
Coimbatore city only. It does not cover the Foreign Banks.
III. OBJECTIVES OF THE STUDY
The main objectives of the present study are as follows:
 To study the profile of customers.
 To determine the factors influencing the utilization of services.
 To compare the attitude of customers towards services

IV. RESEARCH METHODOLOGY

4.1. Primary Data: The primary data has been collected from 200 respondents.
4.2 Secondary Data: The secondary data have been collected from books, journals, and websites

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4.3 Collection of Data: The primary data have been collected by interview schedule from the customers.
The interview schedule has been pre-tested with randomly selected people before the actual collection of
data.
4.4 Sampling Design:: I focused only the State Bank of India (SBI) and Industrial Credit Investment
Corporation of India(ICICI) were selected purposely for the present study since SBI happens to be the
biggest commercial bank in the country and the ICICI is one of the leading private sector bank. Moreover,
these two banks are found to be having more branches covering almost all places of the study area. All the
branches of these two banks were selected using Census method.
From these bank branches, the researcher has selected 200 sample customers, 100 customers from each
bank by adopting judgment sampling method for the study in order to ascertain the attitude of customers
towards banking services.
4.5 Plan of Analysis: To analyse and interpret the collected data, the researcher has been used the tools
like Percentages, Chi- Square Test and Garrett Ranking.
4.6 Hypothesis
The hypothesis framed for this study is as follows.
There is no significant relationship between income of the respondents and the impact of advertisement on
selection of services.
4.7 Limitations
Due to paucity of time, the researchers focussed only Coimbatore City.

V. AGE-WISE CLASSIFICATION OF THE RESPONDENTS

The researcher has classified the respondents on the basis of age. The Age wise classification of respondents
is displayed in Table 1
Table 1
Age-wise Classification of the Respondents

S.No. Age SBI ICICI

(in years) No. of Respondents Percentage of Total No. of Percentage
Respondents of Total
1 Below 18 11 11.00 14 14.00
2. 18 to 30 28 28.00 26 26.00
3. 31 to 50 56 56.00 52 52.00
4. 51 and above 05 05.00 08 08.00
Total 100 100.00 100 100.00
Source : Primary data
The above table shows that in case of SBI, out 100 respondents, 56 respondents are under 31 to 50 age group,
28 respondents are belong to 18 to 30 age group, 11 of them are below 18 years and 05 are 51 and above
years of age.
It also reveals that in case of ICICI, majority (52%) of the respondents are under 31 to 50 years of age, 26% of
them are under 18 to 30 years of age, 14 respondents are below 18 years of age and few of them (8%) are
51 and above years of age.

VI. GENDER OF THE RESPONDENTS

Gender plays a vital role in determining the factors of using services. The table 2 furnishes the gender
wise classification of the respondents.

2006| Manidayanand CUSTOMER PERCEPTION TOWARDS SERVICES PROVIDED BY PUBLIC SECTOR

AND PRIVATE SECTOR BANKS: A COMPARATIVE STUDY
 Table 2
Gender-Wise Classification of the Respondents

S.No. Sex SBI ICICI

No. of Respondents Percentage of Total No. of Percentage
Respondents of Total
1 Male 90 90.00 93 93

2 Female 10 10.00 07 07

Total 100 100.00 100 100

Source: Primary Data

It has been revealed from the above table 1that in case of SBI, 90% of the respondents are male and
remaining is female. In case of ICICI, out of 100 respondents, 93 are male and 7 are female.

VII. OCCUPATION DETAILS OF THE RESPONDENTS

The survey brings to light the details regarding the occupation of the respondents. The table 3 exhibits a
pointer to this fact.
Table 3
Occupation Details

S.No. Occupation SBI ICICI

No. of Respondents Percentage of Total No. of Percentage
Respondents of Total
1 Salaried 50 50.00 45 45.00

2 Professionals 10 10.00 13 13.00

3 Firms 40 40.00 42 42.00

Total 100 100.00 100 100.00

It has been inferred from the above table that in case of SBI, out of 100, 50 of the
respondents are salaried people, 40 respondents are doing business and 10 respondents are professionals.
In case of ICICI, the majority (45%) of the respondents are salaried. The study also discloses that 42
respondents constituting 42% of them are Firms and 13 of them are Professionals.

VIII. EDUCATIONAL QUALIFICATION

Education is a important factor which influences the satisfaction of the respondents. Independent identity
of respondents is proved only through education. Qualification of respondents and their level of satisfaction
are shown in Table 4.
Table 4
Occupation Details

S.No. Education SBI ICICI

Level No. of Respondents Percentage of Total No. of Percentage
Respondents of Total
1 Higher Secondary 24 24.00 23 23.00

2 UG 64 64.00 60 60.00

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 3 PG 12 12.00 17 17.00

Total 100 100.00 100 100.00

Source: Primary Data

It is clearly seen from the above table that in case of SBI, 64% of the respondents were educated upto
Undergraduate level followed by Higher Secondary (24%) and 12% of the respondents were Post-graduate.
In case of ICICI, majority of the respondents (60%) were upto Under-graduate followed by Higher
Secondary (23%) and few of them (17%) were Post-graduate.

IX. INCOME-WISE CLASSIFICATION

Money is an important source of income to make use of any things. Generally rich people are availing more
than one service than that of low income people. So the researcher has classified the various informants
according to their level of income. The following Table 5 bears out an evidence of the data.
Table 5
Monthly Income

S.No. Level of Income SBI ICICI

No. of Percentage of No. of Percentage
Respondents Total Respondents of Total
1 Less Than 40 40 43 43
Rs.10,000
2 Rs. 10,000 to 15,000 35 35 38 38

3 Above Rs. 15,000 25 25 19 19

Total 100 100.00 100 100.00

Source: Primary Data

Table 5 shows that out of 100 respondents in case of SBI, 40% are earning less than Rs. 10,000 per month,
followed by 35% of respondents who earn Rs. 10,000 to Rs. 15,000 per month and remaining 25% of the
respondents earn Rs. 15,000 and above per month. It also depicts that in case of ICICI, out of 100
respondents, 43% are earning less than Rs. 10,000 per month, followed by 38% of respondents who earn
Rs. 10,000 to Rs. 15,000 per month and remaining 19% of the respondents earn Rs. 15,000 and above per
month.
Income-wise Classification
State Bank of India
Table 6 shows the Income-Wise classification of the SBI respondents and the impact of advertisement on
selection of services.
Table 6
Income of the Respondents and the Impact of advertisement on Selection of Services

S. No. Income Number of Respondents Total

(in Rs.)
Motivated by Advertisement Not Motivated Advertisement

1 Less than Rs. 10,000 30 10 40

2 Rs. 10,000 - 15,000 20 15 35

3 Above Rs. 15,000 15 10 25

Total 65 35 100

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Source : Primary data
In order to test the null hypothesis, “There does not exist relationship between the income of the SBI
respondents and the impact of advertisement on selection of services”, Chi-Square value was computed
with the help of SPSS software. The result is shown in Table 7.
Table 7
Chi-Square Tests

Asymp. Sig. (2-

Value df sided)
Pearson Chi-Square 2.983a 2 .225
Likelihood Ratio 3.048 2 .218
Linear-by-Linear
Association 1.911 1 .167
N of Valid Cases 100
0 cells (.0%) have expected count less than 5. The minimum expected count is 8.75.

The p-value (0.225) is less than the chi square value (2.983), the null hypothesis is rejected. Hence, it could
be concluded that there exists a relationship between the income of the SBI respondents and the impact of
advertisement of selection of service.
ICICI Bank
Income-Wise classification of the ICICI respondents and the impact of advertisement on selection of
services are shown in the Table 8
Table 8
Income of the Respondents and the Impact of advertisement on Selection of Services

S. Income Number of Respondents Total

No. (in Rs.)
Motivated by Advertisement Not Motivated Advertisement

1 Less than Rs. 10,000 26 17 43

2 Rs. 10,000 - 15,000 24 14 38
3 Above Rs. 15,000 12 07 19
Total 62 38 100
Source : Primary Data
In order to test the null hypothesis, “There is no significant relationship between the income of the
ICICI respondents and the impact of advertisement on selection of services”, Chi-Square value was computed
with the help of SPSS software. The result is exhibited in Table 9.
Table 9
Chi-Square Tests

Asymp. Sig. (2-

Value df sided)
Pearson Chi-Square .075a 2 .963
Likelihood Ratio .075 2 .963
Linear-by-Linear
Association .058 1 .810
No. of Valid Cases 100
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 7.22.

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The p value (0.963) is greater than chi square value (0.075), the null hypothesis is accepted. Therefore, in
case of ICICI, there is no significant relationship between the income of the respondents and the impact of
advertisement on selection of services.
X. TYPE OF ACCOUNT OF THE CUSTOMERS
The researcher has analysed the type of account of the customers. The data regarding account details of
the respondents is highlighted in Table 10
Table 10
Type of Account of the Customers

S.No. Type of Account SBI ICICI

No. of Percentage to No. of Percentage to
Respondents Total Respondents Total

1 Current Account 60 60.00 64 64.00

2 Savings Bank Account 40 40.00 36 36.00
Total 100 100.00 100 100.00
It is lucid from the above table 10 that in case of SBI, 60 respondents are having current account and 40
respondents are having Savings Bank account. While in case of ICICI, 64 respondents are having current
account and 36 respondents are having Savings Bank account

XI. PERIOD OF OPERATING THE BANK ACCOUNT

The researcher has also found out the period of operating the bank account for using the services. Table 11
shows the Period of using the services.
Table 11
Period of using the Services

S.No. Period SBI ICICI

No. of Percentage of Total No. of Percentage
Respondents Respondents of Total
1 6 Months to 2 05 5.00 8 8.00
years
2 2 years to 5 65 65.00 60 60.00
years
3 More than 5 30 30.00 32 32.00
years
Total 100 100.00 100 100.00
Source: Primary data.
It is inferred from the above table 11 that in case of SBI, out of 100 respondents, 65 respondents have 2
years to 5 years period followed by 30 respondents have more than 5 years and remaining 5 respondents
have 6 months to 2 years period of using service.
It is also revealed from the above table 11 that in case of ICICI, majority of the respondents (60%) have 2
years to 5 years period followed by 32% of the respondents have more than 5 years whereas remaining
8% of the respondents have 6 months to 2 years period of using service.

XII. SOURCE OF INFORMATION ABOUT SERVICES

Source of Information is an important factor to know the details about the services. The researcher has
further analyzed the sources of information to know the services1 111: BOQ\eIII MGviPe: fjournals and
friends and relatives. Table 12 shows the source of information about the services.

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 Table 12
Source of information about the Services

S.No. Source SBI ICICI

No. of Respondents Percentage of Total No. of Percentage
Respondents of Total
1 Banker 55 55.00 65 65

2 Journals 10 10.00 5 5

3 Friends & relatives 35 35.00 30 30

Total 100 100.00 100 100.00

Source : Primary data.
It has been found from the above table that out of 100 respondents, 55% of the respondents and 65% of
the respondents are directly persuaded to buy the product by the SBI and ICICI Bankers respectively. The
direct approach is handled successfully till now. Another 35% of the respondents and 30% of the
respondents have known about the service from friends and relatives in case of SBI and ICICI respectively.
The remaining 10% of the respondents and 5% of the respondents have known about the services through
journals only for SBI and ICICI respectively.

XIII. REASONS FOR USING THE 3 XEG+1131+111.MQINY SERVICES

The customers are choosing the services for different reasons. The researcher has identified some
reasons like Attitude of employees, ATM facility, Internet Banking, Customer Car and Information about new
services. It is calculated as percentage score and the scale value is obtained by employing Scale Conversion
Table given by Henry Garrett. The Percentage Score is calculated as
Percentage Score = 100 (Rij ± 0.50)
Nij
Where, Rij is Rank given for ith item jth individual
Nj is Number of items ranked by jth individual
The percentage score for each rank from 1 to 5 are calculated. The percentage score thus obtained
for all the five ranks are converted into scale values using Scale Conversion Table given by Henry
Garrett. The scale values for first rank to fifth rank are 75, 60, 50, 40 and 25 respectively. The score value
(fx) is calculated for each factor by multiplying the number of respondents (f) with respective scale values
(x). The total scores are found by adding the score values (fx) of each rank for every factor. The mean
score is then calculated to know the order of preference given by the respondents for the factors. Based
on the mean score, the overall ranks are assigned for each. The ranking analysis of the reasons for using
the services through Garrett’s Ranking Technique is shown in Table 13 for SBI and Table 20 for ICICI.
Table 13
Reasons for using the Services - SBI

I II III IV V Total Garrets Mean

Particulars 75 60 50 40 25 Score Score Rank

Attitude of f 25 30 15 15 15 100 5400 54.00 2

employees
fx 1875 1800 750 600 375

f 40 25 20 10 5 100 6025 60.25 1

ATM facility
fx 3000 1500 1000 400 125
Internet Banking f 15 20 35 20 10 100 5125 51.25 3
fx 1125 1200 1750 800 250

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 Customer care f 10 15 10 35 30 100 4300 43.00 4

fx 750 900 500 1400 750

Information about f 10 10 20 20 40 100 4150 41.50 5
new services
fx 750 600 1000 800 1000
Total 100 100 100 100 100

f = No. of respondents; x = scale value; fx = score

It is clear from the above table that the respondents are giving more importance to the ATM facility
(60.25) followed by Attitude of employees (54.00), Internet Banking (51.25), Customer Care (43.00) and the
least importance to Information about new services. (41.50).
Table 14
Reasons for using the Services - ICICI

I II III IV V Total Garrets Mean

Particulars 75 60 50 40 25 Score Score Rank

Attitude of f 28 32 17 16 7 100 5685 56.85 2

employees fx 2100 1920 850 640 175
f 42 22 22 10 4 100 6070 60.70 1
ATM facility
fx 3150 1320 1100 400 100
Internet f 15 20 32 21 12 100 5065 50.65 3
Banking fx 1125 1200 1600 840 300
Customer Care F 7 12 12 37 32 100 4125 41.25 4
fx 525 720 600 1480 800
Information F 8 14 17 16 45 100 4055 40.55 5
about new
services fx 600 840 850 640 1125
Total 100 100 100 100 100
f = No. of respondents; x = scale value; fx = score
Table 14 shows the Garret Scores and Mean Scores. In case of ICICI, the average scores are ranked
according to their values. The first rank given to “ATM facility”, “Attitude of employees” got the second
rank, “Internet Banking” places the third rank, the fourth rank is given to “Customer Care” and the last rank
is given to “Information about new services.

XIV. SUGGESTIONS OF THE STUDY

The following suggestions are offered to improve the services by Banks in Coimbatore.
 Both Public Sector & Private Sector Banks should motivate the people all age groups to avail
services for their personal use to enhance and enrich their banking activities.
 All commercial banks should give importance to the women customers to avail various
banking services.
 Banks should differentiate itself with weekends and extended working hours.

XV. CONCLUSION
The perceived quality of services provided by private sector bank (ICICI) is better than public sector
bank (State Bank of India) in Coimbatore city. It is evident that public sector banks have a strong
presence in the market, but in recent times they are facing vigorous competition from private sector
banks in the range and quality of services offered. In the present scenario banks have to be service
oriented in order to keep ahead of competition. Public sector banks must concentrate on providing
updated information to customers regarding the new services offered by them. They must also change

2012| Manidayanand CUSTOMER PERCEPTION TOWARDS SERVICES PROVIDED BY PUBLIC SECTOR

AND PRIVATE SECTOR BANKS: A COMPARATIVE STUDY
their policies, customer service norms and service efficiency keeping in view the strategies adopted by
private sector banks

REFERENCES
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comparative study. J Fin Mark. 2018; 2 (3): 27-33. J Fin Mark 2018 Volume 2 Issue 3, 28.
2) Bilamge, P. C. (2011). A comparative study of customer perception towards services rendered by
public sector and private sector banks. Indian Journal of Commerce & Management Studies■ ISSN,
2229, 5674.
3) Bose, S., & Gupta, N. (2013). Customer perception of services based on the SERVQUAL dimensions:
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4) Fozia, M. (2013). A comparative study of customers' perception towards E-banking services
provided by selected private & public sector bank in India. International Journal of Scientific and
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study on Indian banks. The International Journal of Human Resource Management, 22(03), 632-647.

2013| Manidayanand CUSTOMER PERCEPTION TOWARDS SERVICES PROVIDED BY PUBLIC SECTOR

AND PRIVATE SECTOR BANKS: A COMPARATIVE STUDY