International Journal of Advanced Research in ISSN: 2278-6236

Management and Social Sciences Impact Factor: 6.943

CUSTOMER PERCEPTION ON SERVICE QUALITY OF PUBLIC AND PRIVATE

BANKS BHIWANI HARYANA INDIA
Rajesh Kumar, Research Scholar, Department of Management Studies, Central University of
Haryana

Abstract: The main objective of this study is to identify customer’s perception on the service
quality dimension in Public and Private Banks in Haryana. In this study researcher has taken
four banks two from public sector and other two from private sector banks. The two banks of
public sector are state bank of India and Punjab national bank. The other two private sector
banks are HDFC and ICICI. A structured questionnaire has been prepared. A sample of 120
respondents has been selected. The data has been collectively randomly from Bhiwani
district in Haryana. The private sector banks are performing better as compared to public
sector banks.
Keywords: Services, SERVQUAL, Perception, Expectation
INTRODUCTION
Banking sector is the growing sector in India. Performance of banking are plays very
important role in the development of economy. So government of India has concern to
development of the banks foe the customers. Now these days banking services have shifted
focus from price to service quality in the retail banking industry. The competition has been
increasing due to change in technology and service is provided by other banks. Banks are
now trying to increase the service quality. Profitability of banking sector are dependent
mostly services provided to banks. Maintaining service quality these days has become
serious problem in the competitive market to measure the performance. Service quality has
been as an overall assessment of service provided to potential customers of the bank.
Generally service quality defined as the extent to which service meets customer need or
expectations. Service quality also defined as the difference between customer expectations
with the bank. On the basis of usage service quality has been divided in five dimensions.
Tangibles
Tangibility means the physical appearance or things which are provided by the bank. The
questionnaire which researcher has prepared includes visually appealing of bank offices,

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 International Journal of Advanced Research in ISSN: 2278-6236
Management and Social Sciences Impact Factor: 6.943

modern looking equipment of bank employees, attractive printing material of the banks,
and dress of the bank employees, parking facilities of the banks, security arrangement of the
banks, information that is displayed in the banks, drinking water and washroom facility in
the bank, number of counters in banks, connectivity with road are considered tangibles
items of the service quality.
Reliability
Reliability dimension refers to the interest of the bank employees to solve customer
problem. It also provided right kind of services at right time. Some attribute of reliability are
as services without any error, bank services are performed with in promised with in
promised time, sincere concern in solving problems related to banking transaction,
corrective action is taken if any error is noticed at any stage, bank performs its services
exactly as promised, all kinds of mails are received by the bank at registered mobile number
from the branch, any difficulty with the cards, employees are well aware of the services
offered by the bank. These attribute define the reliability situation of the bank.
Responsiveness
Responsiveness determines the level of involvement of employees and concern for
customer required assistant and provided them quick services to customer. Responsiveness
also has some attribute which measure the level of responsiveness of the banks. It includes
the following bank employees quickly respond to my work, bank employees are always
ready to help, bank quickly eliminates errors on reporting, employees do not spend much
time waiting in line, the telephonic calls are being received regularly by the bank, bank
immediately responds to wrong transaction if any. So this point tells the actual
responsiveness situation of the bank.
Assurance
Assurance assures the customer that they are providing good services. Assurance includes
the courteous behavior of the employee. Assurance have some attribute which are as
follows like bank generally informs about the time of service to be performed, bank
statements delivered monthly to mail address are clear and understandable, bank
employees are trustworthy, bank assure safety to customer money, bank employees are
knowledgeable to respond my specific question.

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 International Journal of Advanced Research in ISSN: 2278-6236
Management and Social Sciences Impact Factor: 6.943

Empathy
Empathy tells the level of relationship between customers and employee. It shows the
feeling of banks towards the customers. it understand the needs of the customer from the
employees in the bank. It includes the following bank operating hours suit to my needs,
bank is user friendly and accessible, the bank is favorably located to me, the bank always
advices me about the most suitable service for my specific needs, the bank always considers
my wishes and needs, bank employees are kind and polite in their behavior, bank shows
keen interest in each customer.
REVIEW OF LITERATURE
Bhat (2005) All the three banks are performed well in tangibility factor, because tangibility
was having less gap score and people are more reliable on public sector banks. Researcher
concluded that foreign sector banks are better than public and private sector banks. Tahir &
Bakar (2007) investigated the level of service quality of commercial banks in Malaysia. A
sample of 300 respondents was selected from east coast of region. For this study SERVQUAL
model was used. A descriptive analysis (mean and paired test) was used for evaluation.
Singh & Tripathi (2007) focused on Indian private sector banks and attempts to measure the
gap in the service quality perception of both the service providers and customers. The three
banks were ICICI, IDBI and Centurion bank of Punjab selected from Lucknow and Delhi city.
Random selection has been made from the list of all the private sector banks. Munusamy,
chelliah & Mun (2010) focused measurement of customer satisfaction through delivery of
service quality in Malaysia. There is no problem in safety of money. Reliability does not have
any significant impact on customer satisfaction and customer found difficulty to banking
hours. Agathee (2010) tried to find out the relationship between service quality and
customer satisfaction in Mauritian banking sector. Customers are generally satisfied with
the bank’s physical facilities, equipment and appearance of personnel. The result shows that
those falling in the highest income groups are dissatisfied. Mishra, Sahoo & Mishra (2010)
Concluded that Public sector banks has need to redefine the customer service parameter in
order to compete with the nationalized private sector banks both in profitability and
corporate image. Hossan (2010) Compared the quality of services provided Chartered Bank
and Dhaka Bank Ltd in Bangladesh. The result shows that all users had internet access.
Respondents pointed out that they use internet banking services to check balances to print

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 International Journal of Advanced Research in ISSN: 2278-6236
Management and Social Sciences Impact Factor: 6.943

statements and queries. The finding also highlighted that 50% of the respondents are
strongly dissatisfied. Asgarian (2010) studied to compare the customer satisfaction between
public and private banks in Iran. This study revealed that customers place high expectations
on reliability on bank services. In terms of assurance, the data revealed bank customers
expectations were not adequately. Ahmad, Rehman, Saif, & Safwan (2010) examined
perception of customers regarding service quality of the Islamic banks as well as
conventional banks. The result shows that service quality score offered by Islamic banks are
greater as compared to conventional banks.
Farokhian & Sadeghi (2011) Researcher found that factor of accuracy, reliability, image
impression of the bank and management and web design are mostly correlated with
customer satisfaction. According to the results no difference was observed in general
satisfaction with electronic banking between males and females. Rahaman (2011) studied
the service quality on PCB (private commercial banks)in Bangladesh. To analysis the data
SERVEQUAL method was used. Farokhian & Sadeghi (2011) tried to study investigate
customer understanding and five dimensions of service quality. Researcher suggested that
staff must improve quality like provide training courses, continuous different workshops and
cooperation with customers. Mishra, Mishra, Praharaj & Mahapatra (2011) used customer
relationship management to know the level of satisfaction. Customer of public sector bank
experiences more satisfaction as compared to private sector banks. Regarding premises and
administrations private sector banks are better than public sector banks. Santhiyavalli
(2011) A sample of 300 respondents has been taken with structured questionnaire 22
statements. Researcher found that reliability, responsiveness, empathy and tangibility were
more responsible for 90% customer satisfaction level. Lohani & Shukla (2011) Compared
services provided by Public and Private sector banks. A structured questionnaire has been
prepared for the study. The result shows that services provided by Private sector bank are
better than Public sector bank. The researcher suggested that Public sector bank must
concentrate on providing updated information to customers regarding the services. Pandya
& sandhe (2012) Questionnaire was categorized into two parts, first part demographic
profile second part questionnaire weighted given for five attributes. Sample size was 200.
Researcher had found limitation of the study because the researcher was conducted only in
the city of vadodara and two banks represented private and nationalized banks. The

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 International Journal of Advanced Research in ISSN: 2278-6236
Management and Social Sciences Impact Factor: 6.943

perceived quality levels in nationalized were lower than those in private banks. Muyeed
(2012). The result shows that banks have imposed service charges and fines too much for
which customers are dissatisfied. The customer perceptions are highly satisfied with prompt
and accuracy in transactions followed by safety of customer investments and keep
confidentiality of account and transactions. The banks need to consider the weak areas in
order to meet customer requirement. Kumar & Manjunath (2012) Studied customer
satisfaction of ICICI bank in Mysore city. Demographic information revealed that 23%
customer were young, 59% were male maintain the service quality from time to time. The
study revealed that ICICI bank had positive relation with customer.

DEMOGRAPHIC PROFILE OF PUBLIC AND PRIVATE SECTOR BANKS IN

BHIWANI HARYANA
Table: 1
Variables Public Banks Percentage Private Banks Percentage
Age group
20-30 13 21 05 09
31-40 17 29 11 18
41-50 12 20 37 62
51-60 07 12 05 08
Above 60 11 18 02 03
Total 60 100 60 100
Sex
Male 44 73 39 65
Female 16 27 21 35
Total 60 100 60 100
Occupation
Service 42 70 16 27
Business 03 05 35 58
Profession 08 13 03 05
Others 07 12 06 10
Total 60 100 60 100
Income
Less than 50000 27 45 13 22
1.00-2.00 lacs 08 13 19 32
2.00-3.00 lacs 11 18 11 18
3.00-4.00 lacs 03 05 04 06
4.00-5.00 lacs 02 04 06 10
More than 5 09 15 07 11
lacs
Total 60 100 60 100

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 International Journal of Advanced Research in ISSN: 2278-6236
Management and Social Sciences Impact Factor: 6.943

Qualification
Undergraduate 27 45 14 23
Graduate 07 12 29 48
Post Graduate 18 30 12 20
Others 08 13 05 09
Total 60 100 60 100

Table 1 shows that demographic profile of Public and Private sector banks in Bhiwani district
Haryana India. The demographic profile shows various variables like on the basis of age, sex,
occupation, level of income, educational qualification. Public sector banks have highest
number of customers in the category 31 to 40 years. Private sector banks have highest
number of respondent in the category 41 to 50 years. Both public and private sector banks
have highest number of male customers. Public sector banks have 73 percentage male
customer and private sector banks have 65 percent male customers. Public sector banks
customers are mostly working with service industry and private sector banks respondents
are mostly having their own business. Mostly respondents in public sector banks were
having less than 50000. Undergraduate customers are highest in number public sector
banks and graduate customers are highest in numbers in private sector banks.
RESEARCH METHODOLOGY
Data is collected through primary survey. A structured questionnaire has been prepared and
120 respondents have been selected from Bhiwani district on randomly basis. Two public
sector banks are state bank of India and Punjab national bank. The other two banks are
taken from private sector banks category namely HDFC and ICICI. The respondents were
survey randomly on the basis of availability. The questionnaire was divided with five
dimension tangibility, reliability, responsiveness, assurance and empathy. All five
dimensions were having 36 statements.
Table: 2
Tangibles Statements P P
1. Bank offices are visually appealing 3.5 4.2
2. Bank has modern looking equipment. 2.7 3.4
3. Printing materials (from brochures, monthly statements 3.6 4.1
bank cards) Look attractive.
4. Bank employees are suitably dressed, neat and clean. 2.2 3.8
5. Bank has good parking facilities. 2.8 4.2
6. Bank has adequate security arrangement 4.4 4.1

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 International Journal of Advanced Research in ISSN: 2278-6236
Management and Social Sciences Impact Factor: 6.943

7. Information and procedures are well displayed in bank. 1.5 4.9

Reliability 8. The bank performs its services without errors. 3.5 3.9
9. Bank services are performed within the promised time. 3.3 4.4
10. Bank employees show sincere concern in solving my 4.1 4.7
problems related to banking transactions.
11. The bank correctly performs a service from the very 3.7 4.2
first time.
12. The bank performs a service exactly as promised. 3.0 4.9
13. The bank regularly sends me bank statements on my 4.3 3.5
account balance to my home/mail address.
14. Customers have no difficulties with various cards of this 2.9 3.8
bank.
Responsive 15. Bank employees quickly respond to my work. 4.8 4.2
ness
16. Bank employees are always willing to help. 3.5 3.7
17. Bank employees are quickly eliminating errors. 3.3 4.5
18. In the bank I do not spend much time waiting in line. 2.5 3.5
19. Bank employees respond on telephonic/ mailing 3.3 4.7
correspondence.
20. Bank responds to wrong transaction by mistake. 3.4 4.2
Assurance 21. Bank employees tell me exactly when a service will be 2.5 3.5
performed.
22. Bank statement delivered monthly to my home/mail 2.4 4.4
address are clearly and Understandable.
23. Bank employees are trustworthy. 4.1 4.7
24. Bank assures safety to customer’s money (like ATM 2.4 3.6
guard).
25. Bank employees are knowledgeable to respond my 3.3 4.1
questions.
26. Information provided by bank employees are clear and 2.7 4.4
understandable.
Access 27. The bank operating hours suit to my needs. 3.4 4.2
28. The bank is easily accessible( lift, access for disabled 2.2 3.1
person etc)
29. Bank has extended working hours for working people. 2.8 4.2
30. The bank is favourably located to me. 3.3 3.8
31. Bank is well connected with road. 1.7 2.4
Empathy 32. The bank employees know to advise me what would be 3.3 4.9
the most proper service for my specific needs.
33. The bank considers my wishes and needs. 3.8 3.9
34. Bank employees show understanding of my specific 4.4 4.7
needs.
35. Bank employees are kind and polite in their behaviour 4.2 4.8
36. Bank shows keen interest in each customer. 3.5 3.8

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 International Journal of Advanced Research in ISSN: 2278-6236
Management and Social Sciences Impact Factor: 6.943

Table 2 shows that perception level of public and private sector banks in Bhiwani district in
Haryana. Dimension tangibility shows the looking condition of public and private sector
banks. Private sector banks have well displayed written information in banks. Public sector
banks have well security arrangement in the banks. The result shows that private sector
banks are performing well in comparison of public sector banks.
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