A Study On Customer Service Quality of Banks in India
A Study On Customer Service Quality of Banks in India
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312 TABLE OF CONTENTS
Chapter 5 331 - 336
Introduction
Bank plays an important role in the economic development country. Some of the contributions of banks to the
of a country. It is a financial institution that accepts economy of the country are discussed below:
deposits and channels those deposits into lending Facilitator for Monetary Policy: The fiscal and
activities either directly or through capital markets. A bank monetary policy of a country has greater impact on
connects customers which have capital deficits to those its economic development, and a well-developed
customers with capital surpluses. The banking industry in banking system is pre-requisite for successful
India is facing certain challenges i.e. challenges of quality implementation of the monetary policy.
service, customer satisfaction, customer retention,
Promoting Capital Formation: Banks are the
customer loyalty, Quality service plays a major role in
reservoirs of capital providing loans to the individuals
achieving customer satisfaction, and creating brand loyalty
and business. Pooling of financial resources and
in banking sector.
formation of capital is encouraged by banks by way
1.1 Role of Banking in Indian Economy of deposits and other activities. This capital is
The Government of India, after independence had to utilized by entrepreneurs and contributes for the
focus on many areas among which one of the important economic development of the country.
tasks was economic development of the country. In this Encourages Innovation: Entrepreneurship and
context, the Industrial policy resolution in 1948 focused Innovation go hand-in-hand. Banks encourage
on mixed economy, which played an active role in entrepreneurship by attractive credit, which
development of different sectors including banking and empowers them towards innovation.
finance. A major step in this direction was the
Monetization: The coining of currency or printing of
nationalisation of banks in 1948.The Banking
banknotes is done by the central bank. In other
Regulation Act was enacted which empowered the
words; banks are the manufacturers of money which
Reserve Bank of India (RBI) to regulate, control and
is important for the economy.
inspect the banks in India. In other words all the banks
in India fell under the jurisdiction of Reserve Bank of Influence Economic Activity: Banks influence the
India under the Banking Regulation Act. rate of interest in the money market through its
supply of funds. It can influence a monetary policy
The Government of India nationalised private banks
with low-interest-rates which will tend to stimulate
in 1969 and later in 1980 in order to have better
economic activity.
control over this sector. Government of India controls
around 91% of the banking business in India. In Banking sector has become so important that the
early 1990s, the then prime minister of India P.V absence of banking industry leads to stagnation in
NarsimhaRao liberalized the sector by giving economic development of the country, the savings
licenses to a small number of private banks, which would sit idle in our homes, the entrepreneurs would
came to be known as new generation tech-savvy not be in a position to raise money, innovation of
banks. Among these banks were, Global Trust Bank new products or business models will get affected.
(Now acquired by Oriental Bank of Commerce), UTI Ordinary people having dreams of new car or house
Bank (now re-named as Axis Bank), ICICI Bank and will not be able to purchase-which will affect
HDFC Bank. The banking sector in India constitutes automobile and real estate business.
government banks, private banks and foreign banks. 1.2 Indian Banking Industry & Service Quality
In the era of Liberalization, Privatization, and The banking industry is facing rapid changes in the
Globalization (LPG) banks play a dynamic role in market, such as: new technologies, economic
contributing to the economic development of the uncertainties, fierce competition, more demanding
315
316 CH. 1 : INTRODUCTION
customers and the changing climate which lead to an pronged challenges to retain the existing customers
unprecedented set of challenges. Banking is a customer and to create new customers. However, success
oriented service industry which has witnessed a radical rate depends on the innovative strategies adopted
shift in the market power. The effectiveness and efficiency by the banks including better customer services and
became the buzzword of the success of banking adequate fulfilment of customer expectations. Thus,
operations and its proper functioning particularly with customer satisfaction is quite a complex issue and
respect to providing services to the customers. Service is there is a lot of debate and confusion about what
an invisible thing which is indispensable from the person exactly is required and how to go about it.
who extends it. An efficient or effective service is one 1.3 Importance of Service Quality in Banks
which is extended appropriately by identifying and
Increased competition, highly educated consumers,
understanding the needs of the individual customer from
and increase in standard of living are forcing many
time to time. Customer service is a dynamic interactive
businesses to review their customer service strategy.
process which needs continuous improvement. With the
Many business firms are channelling more efforts to
advancement of information technology and
retain existing customers rather than to acquire new
communication system, the whole world has been reduced
ones since the cost of acquiring new customer is
to a global village.
greater than cost of retaining existing customers.
The customers at the present juncture are well exposed
There is enough evidence that demonstrates the
to unstoppable innovations in communication
strategic benefits of quality in contributing to market
technology. He/she is aware of the kind of service level
share and return on investment. Maximizing
available around the world and thus expects the best
customer satisfaction through quality customer
from his/her bank. Customer service is not only a
service has been described as the ultimate weapon
critical function but plays a vital role for the business. It
by Davidow and Vital (1989).
is the next most important business strategy. The
improved customer service will definitely increase According to them, in all industries, when competitors
profitability. A bank can be said as customer oriented if are roughly matched, those with stress on customers
its various organizational activities like organizational service will win. In view of the above mentioned facts,
restructuring, staffing, and coordination are geared up an analysis of service quality perceptions from
to fulfil the needs of customers. customers point of view may be sound and interesting
at this juncture. Such an analysis will provide banks, a
During the past two decades or so, regulatory,
quantitative estimate of their services being perceived
structural and technological factors have significantly
with intricate details such as whether banks are
changed the banking environment in India. In a milieu
meeting the expectations of the customers or not.
which becomes increasingly competitive, service
quality as a critical measure of organizational 1.4 Measuring Service Quality in Banking Sector
performance continues to compel the attention of Customer is vital for the development of trade,
banking institutions. The interest is largely driven by the industry and service sector particularly in financial
realization that higher service quality results in services. Therefore, the significance of customer
customers satisfaction and loyalty, greater willingness service in the banking sector came to force to
to recommend to someone else, reduction in compete in a market driven environment. Measuring
complaints and improved customer retention rates service quality in the service sector particularly in the
In the era of globalization and liberalization, economic banking sector is more difficult than measuring the
reform has become an imperative to remain in the main quality of manufactured goods. The service sector
stream of global economy. In this regard, banking as a whole is very heterogeneous and what is
sector being the backbone of the economy cannot heterogeneous may hold true for one service and
maintain status quo. It is legitimately feared that the may not hold for another service sector.
privileged status, which banks enjoyed for the last three Each bank is having a variety of services. Due to this
decades, has already been changed with the entry of differentiation, services in this industry could not be
new players in the form of private and foreign banks. standardized, moreover these services are intangible in
Under these circumstances, the banks will have to face nature which could not be compared or seen.
CH. 1 : INTRODUCTION 317
The concept of customer satisfaction and service on a wider scale to customers are more reputed in the
quality is interrelated with each other. Moreover eyes of customers. But at the same time technology
satisfaction of customer depends upon service based product is different in public and private sector
quality and service quality is increasingly offered as banks. Bank automation and electronic banking is fast
a strategy by marketers to position themselves more in private sector comparative to public sector.
effectively in the market place. Due to the advent of E-banking is an improvement over traditional banking
e-banking, quality of service has been improved a lot system because it has reduced the cost of transaction
as compared to traditional banking services. Internet processing, improved the payment efficiency, financial
banking, Mobile banking, automated teller machine, services and also has improved the banker-customer
electronic fund transfer has totally changed the way relationship. The relationship between e-banking and
of providing services by the banks. service quality can be studied with the level of
1.5 Service Focus Areas of Banking Industry satisfaction. E-banking plays a pivotal role in giving
There are a variety of services like retail banking, satisfaction to the customers because e-banking fills
corporate banking, investment banking, commercial the gap between the expected and perceived service
banking, personnel banking, wholesale banking, quality. So in order to fill this gap, banks should find
internet banking etc. ways of making electronic services more accessible
and by allowing the customer to verify the accuracy of
Electronic Banking and Service Quality
the e-banking transactions.
As customers become more sophisticated, therefore, it
There are number of reasons due to which customer
becomes essential to consider the use of technology to
satisfaction on account of e-banking has improved.
respond to their continuous needs. Banking is an industry
The reasons are as follows;
highly involved with the customers. Customers in
developing economies seems to keep the technological 1. Customer can withdraw funds, transfer funds
factors of services as the yardstick in differentiating good anytime, anywhere they want.
& bad services and the human factor the employees 2. Accessibility has been extended through
seem to play a lesser role in discriminating the quality of technological development as it allows customers
service for banks. The variations in services offered by the to do business from their home and office.
banks develop excellence for service quality. Banking is
3. It makes the banking activities and transaction
no longer regarded as business dealing with money
very simpler to understand
transaction alone, but it also seem as a business related
4. There is no requirement of direct control with
to information on financial transaction. Customers at the
bank, as services can be operated wherever
corporate level or at retail level have always been
customer wants.
important for the banks. As electronic banking is becoming
more prevalent, level of customer satisfaction is also 5. It has reduced the waiting time of the customer;
changing the scenario of technological environment. 6. Availability of employees at all times is not
required as these services are provided 24
Informational technology in the form of e-banking plays hours a day, seven days a week.
a significant role in providing better services at lower 7. Internet based services has enabled the
cost. Several innovative IT based services such as corporate and retail customers to transact from
Automated Teller Machine (ATM), Internet banking, home, office and travelling.
Smart Cards, Credit Cards, Mobile banking, Phone
8. Online fund transfer has enabled the customer
banking, Anywhere-Anytime banking have provided
to transfer funds from one bank to another or
number of convenient services to the customer.
within the same bank at same time.
So as the service quality improves, the probability of
9. Communication, interaction between the bank and
customer satisfaction increases. Increase satisfaction
customer has been improved due to e-banking.
in turn increases the mutual understanding, customer
retention and a bond of trust between customers and
banks. The banks which are providing these services
CHAPTER-2
Service Quality
Service Quality is a business administration term used customers. Information might include for example,
to describe achievement in service. It reflects both explanation of the service and its cost, the
objective and subjective aspects of service. The relationship between services and costs and
accurate measurement of an objective aspect of assurances as to the way problems are effectively
customer service requires the use of carefully managed. Knowing the customer means making an
predefined criteria. The measurement of subjective effort to understand the customers individual needs,
aspects of customer service depends on the conformity providing individual attention, recognizing the
of the expected benefit with the perceived result. This customer when they arrive and soon. Tangibles are
in turn depends upon the customers imagination of the the physical evidence of the service, for instance,
service they might receive and the service providers the appearance of the physical facilities, tools and
talent to present this imagined service. equipment used to provide the service; the
2.1 Dimensions of Service Quality appearance of personnel and communication
materials and the presence of other customers in
A customer will have an expectation of service
the service facility.
determined by factors such as recommendations,
personal needs and past experiences. The expectation Reliability is the ability to perform the promised
of service and the perceived service result may not be service in a dependable and accurate manner.
equal, thus leaving a gap. Ten determinants which may Responsiveness refers to the willingness of
influence the appearance of a gap were described by employees to help customers and to provide
Parasuraman, Zeithaml and Berry: prompt timely service.
Competence is the possession of the required 2.2 Service Quality: Conceptualization and
skills and knowledge to perform the service. Operationalization
Courtesy refers to factors such as politeness, Quality is a concept which requires a concern both
respect, consideration and friendliness of the in products as well as in services.
contact personnel; consideration for the Experts have defined it as, fitness for use, conformance
customers property and a clean and neat to requirements, freedom from variation etc. To market a
appearance of contact personnel. product, quality plays a pivotal role to sell a product. In
Credibility refers to factors such as fact, quality is considered as the most important factor that
trustworthiness, believability and honesty. It influence on the buying behavior of the customer. In
involves having the customers best interest at tangible goods like products, quality can be measured by
heart. It may be influenced by company name, its durability and number of defects, usage of product,
company reputation and the personal packaging, handling etc. However measuring the quality in
characteristics of the contact personnel. intangible is a different one. As services are intangible so
Security represents the customers freedom they are very difficult to measure. Services have a lot of
from danger, risk or doubt including physical intangible dimensions like communication, credibility,
safety, financial security and confidentiality. security, competence, reliability, responsiveness which are
qualitative by nature and their value is subjective. Service
Access refers to approachability and ease of
quality is an abstract and elusive construct because of 4
contact.
unique features of services viz,:
Communication mean both informing customers
in a language they are able to understand and
1. Intangibility (Bateson, 1977)
also listening to customers. A company may need
to adjust its language for the varying needs of its 2. Heterogeneity (Booms and Bitner, 1990)
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CH. 2 : SERVICE QUALITY 319
3. Inseparability (Carman &langeard, 1980) on the satisfaction level based on the demographic
4. Perishability (Stanton, J. William 2004) differences.
Services are those economic activities that typically The study collects the perceptions about the various
produce an intangible product such as education, service quality factors through purposive sampling
entertainment, food & lodging, transportation, insurance, method and analyses the impact of the service quality
trade, government, finance, real estate, medical, repair & factors. The data were collected on the basis of the
maintenance etc. Intensified competition and deregulation various demographics like, rural urban area,
has led many services and retail businesses to seek education standards, income level, occupation
profitable ways to differentiate them. One strategy that has difference, age groups etc. And finally, study concludes
been related to success in these businesses is the saying about the existence of a close bond between the
delivery of high service quality. So service quality has service quality factors and the customer satisfaction
become a significant research topic in past decade due to level. And also it is found that the impact of the service
high revenues, increased cross sell ratios, higher quality factors on customer satisfaction was varying
customer retention, purchasing behaviors and expanded with the demography of the customers.
market share. 2. Customer perception on Service Quality in
An analysis of service quality literature suggests four Banking sector: with Special Reference to Indian
underlying themes: Private Banks in Moradabad Region, February
2012.By: Vibhor Jain, Dr Sonia Gupta, Smrita Jain
(a) It is more difficult to evaluate than quality of
This study was conducted to understand the perception of
tangible goods.
service quality in the banking sector and also to evaluate
(b) Evaluation of quality is not made solely on the
how it helps in enhancing the reputation and attract
outcome service; they also involve the
customer loyalty. With the increased competition among
evaluation of the process of service delivery
the private sector banks, this study would help in defining
(Parasuraman, Zeithamal& Berry, 1985).
a strategy to achieve the competitive edge and also
(c) Service cannot be separated from the creator of satisfied customers. And hence service quality has been
service. These are created, consumed and used to position the banks in the tough market. The study
dispensed at the same time. was administered through the private banks like ICICI,
(d) Although the services are intangible but through HDFC, KOTAK& INDUSIND BANKS.
visualization, association, physical The study has taken the SERVQUAL tool for
representation and documentation; intangibility measurement of the service quality offered by the
of the services can be improved. private players in the banking industry. The main
2.3 Literature Review assumption is Service quality is multi dimensional
concept and these dimensions help in measuring the
1. Impact of Service Quality in Commercial
service quality. The responses were collected based on
Banks on the Customers Satisfaction: An
the five dimensions namely, assurance, reliability,
Empirical Study, October 2011.By: Dr. S. Fatima
responsiveness, tangibility and empathy.
Holy Ghost; Dr. M. Edwin Gnanadhas
The study identifies that Reliability and
Service quality is important mainly in the service business
Responsiveness are the most relevant factors for the
enterprises. Growth and development of the enterprise
service quality perception and they have compared the
majorly depends on the service quality. As service quality
individual scores with the average mean value scored
is the only way to satisfy majority customers, enterprises
by the private banks under the study. The study found
concentrate more on the service quality today. Quality in
that among the four banks under the study, HDFC bank
service is also interrelated to other behavioral outcomes of
has the highest quality perception in terms of the
the customers. The study understands the various
various dimensions, though there is only one branch of
customer perceptions about the service quality factors like
this bank located in Moradabad. It is followed by ICICI,
Assurance, Empathy, Responsiveness, Reliability and
KOTAK & INDUSIND. The study concludes with
Tangibility in the banking industry and the satisfaction level
suggestions for the private banks to be very
towards the banks. It also analyses the impact of these
competitive in the industry.
service quality factors
320 CH. 2 : SERVICE QUALITY
3. Service Quality Delivery and Its Impact on and Empathy. And the Customer satisfaction factors
Customer Satisfaction in the Banking Sector In like Speed, Accuracy, Safe, Suave, and Comfort.
Malaysia, October 2010.By: Jayaraman The characteristics of the respondents were considered
Munusamy, Shankar Chelliah and HorWaiMun based on their demographic profiles like sex, age,
The study focuses on the measurement of the income, occupation etc. And the profile perceptions
customer satisfaction through delivery of service quality about the service quality and the customer satisfaction
in banking sector in Malaysia. And it highlights the were analyzed from the indicators of the same. Service
parameters in banking industry for improvement in quality has 17 indicators and Customer satisfaction has
delivery of service quality. And also gives a snapshot of 12 indicators. The various indicators of both the service
some appropriate methods that have been used for the quality and customer satisfaction are measured using
measurement of customer satisfaction. the scores from the questionnaire given to the sample
The methodology followed was data collection from population on a 5- Level Likert Scale. And then the
random respondents of the general population. regression model was estimated using SPSS tool.
Considering the fact that different group of people from From the analysis, the study concludes that there is
different backgrounds have different expectation level, a significant relation between the service quality and
a large respondent population was targeted for the the customer satisfaction. And service quality is very
research. The questionnaire was collected from 117 important and consists of actions like quick
respondents from different backgrounds. response, commitment, staff availability, right service
The study found that assurance has a positive fat right time, complaint solution, competency and
relationship with customer satisfaction, but without capability of the staff in the bank.
significant effect. Reliability is the timeliness and 5. Measuring Service Quality in Retail Banking
accuracy in service provided, and says reliability does Sector in Context of Gujarat, January 2012.By:
not have much impact on customer satisfaction. Parmita Mehta, Marwadi Education Foundations
Tangibles include the appearance of the company, and Group of Institutions, Rajkot
the study found that it has high positive correlation with The main objective of the study is the measurement
customer satisfaction. The study says that there is no of the service quality in the banking sector.
much relation between empathy and satisfaction. Segmentation of the customers based on their
Responsiveness is the timely response, which the perception about the high and low service quality
customers get from their service providers. The study factors and identifying the relation between both, find
suggests that responsiveness factor is highly related to the importance of various dimensions of service
customer satisfaction. quality and its influence on customer satisfaction.
4. Effect of Service Quality On customer For the study, 1 public sector bank, 3 private banks
Satisfaction with Bank Nagari Main Branch Padang, & 2 co-operative banks were chosen. To understand
November 2011.By: Heryanto, Lecturer of the the relationship between the two segments of the
University of Putra Indonesia, West Sumatra customers, chi square was used.
The objective of the study was to understand the The study also defines the various dimensions of
influence of service quality on customer satisfaction service quality and uses regression analysis to
on the main branch of Bank Nagari. The study understand the relative importance between the
focuses on how the influence of service quality dimensions. The sample population was counted to be
affects the satisfaction of the banking customers of total 293 respondents from 6 banks using purposive
the Bank Nagari, Padang. sampling and personal interview was conducted.
The sample size taken for the study is 100 savings
To perform segmentation analysis, the customers
customers of the bank. Data was collected from the
were classified based on their service quality scores.
population by accidental random sampling technique. A
The report found that the type of account held by the
simple Regression model is fitted to the data. The paper
customer has more influence on the service quality
defines the various dimensions of the service quality like segments. Hence the study suggests that the type of
Responsiveness, Reliability, Tangibility, Assurance
CH. 2 : SERVICE QUALITY 321
1. Overall service quality The objective of the study is to evaluate the service
quality of the SBI in Coimbatore area. The study
2. Overall customer satisfaction would also help in understanding of the customer
3. Loyalty intention perception of service quality in selected branches of
4. Likelihood of recommendation SBI and also the major factors responsible for the
customer satisfaction.
The study concludes saying that reliability dimension
has the highest shortfall and assurance shows the The study was performed for duration of 6 months
lowest, when compared with customer expectations. covering five branches at R.S Puram, Saibaba Colony,
And also suggests that type of account is a Singanallur, Race Course Road and Ganapathy road.
significant variable in profiling the two segments. SERVQUAL technique was used in the study using 22
variables under the dimensions, tangibility, reliability,
6. How do service quality perceptions contribute in
responsiveness, assurance & empathy.
satisfying Banking Customers?, December 2011.
By: Prof. Dr. Muhammad Ehsan Malik, Dean IBA, Gap Analysis was used to find the shortfalls in the
University of Punjab, Lahore (Pakistan). Basharat dimensions of service quality of the banking service.
Naeem, Lecturer at IBA, University of Punjab, The variables for data collection, used in the study
Lahore (Pakistan). Zouna Arif, Student of MBA, are the demographic variables like age, gender,
University of Punjab, Lahore (Pakistan). educational qualification, marital status occupation
and annual income.
The title of the study itself defines the objective, service
quality perceptions contribution in customer satisfaction. Primary data was collected from the e-banking customers
The research hypothesis is that clients using retail banking of the branch through a questionnaire with 22 statements
services with favorable perceptions of service quality under the five dimensions. Convenience sampling was
dimensions will experience higher satisfaction. Data used to select the sample respondents. 250 responses
collection was done from the banking customers from were received and the responses were captured on a 7
government, international and privately held banks in Likert scale. Results of the study shows that most of the
Lahore, Pakistan. Service quality was assessed in both customers fall in the range of agree and partially agree
ways based on Wang et als and Parasuraman et al. The for the services offered by SBI. As the gap scores were
overall satisfaction was measured using a 1-5 Likert less for Assurance, the customers are satisfied with
Scale. Multiple regression analysis was carried out to security aspects and Empathy has the highest gap score,
assess the survey responses. Descriptive statistics like which implies the dissatisfaction of the customers. Factor
mean mediation was calculated for all dependent and analysis conducted clearly indicates that the five
independent variables. dimensions Assurance, Empathy, Tangibility, Reliability
and Responsiveness are the major factors influencing the
From the findings, the study concludes that not all
customer satisfaction.
SERVQUAL dimensions have the role in boosting the
satisfaction level of the banking customers in context 8. The Key Determinants of Internet Banking
with Pakistan. Also says assurance has higher service quality: A content Analysis, July 2011.By:
contribution than reliability. The study has more Minjoon Jun, Associate Professor, New Mexico
implications on the banking practioners in Pakistan. State University, USA.ShaohanCai, Doctoral
The study findings also support the positive relationship Candidate, New Mexico State University, USA.
of service quality with satisfaction as found by Dagger The objective of the study is to understand the customer
et al. The study concludes that the relationship perceptions on the internet service quality, the various
between service quality and satisfaction varies because dimensions associated with the satisfaction. The study
of the variability of the service quality dimensions.
322 CH. 2 : SERVICE QUALITY
focuses on the various issues associated with the The study identified the attributes for Customer service
internet banking service quality. The study identified quality like reliability, responsiveness, credibility,
17 dimensions of service quality, which are classified competence, courtesy, access, communication,
as Customer service quality, banking service product understanding the customer, collaboration & continuous
quality, online systems quality. The various incidents improvement based on focus group discussions. The last
happened with the customers were content two attributes collaboration and continuous improvement
analyzed. The study discusses about the main four has been identified uniquely by the authors of this paper. It
dimensions for customer service quality as Access, briefly discusses about the attributes collaboration and
Courtesy, Responsiveness and Reliability. continuous improvement with case studies from the
Critical Incident Technique (CIT) was used in the customer experiences.
study to identify the key indicators of the Internet The study concludes saying that; any initiative for
banking Service Quality. Incidents were collected quality should begin with defining the customers.
from various organizations that access internet Identification and measurement of the customer
banking services for the day to day process. expectations will help banks in assessing their
service quality.
It has been observed, through above studies, that the service sector literature focus upon the static models
quality of the banking sector is one of the most researched (Parasuraman, Zeitham& Berry, 1985, 1988, 1993;
topics yet opening scope for researchers to further probe. Babakus& Mangold,1992; Cronin & Taylor, 1992, 1994;
These studies usually use Parasuramans SERVQUAL Boulding, Kalra& Stealing 1993; Johnson &Ferstl,
scale to measure service quality or consumers overall 1999). However, one needs to remember that there are
satisfaction. According to this scale, quality defines a gap also some researchers who work with a dynamic
between perceived expectations framework as well (Kopalle& Lehman 2001; Kara,
(E) and performance (P) and if the performance Tarm&Zaim, 2003). Hence the study on the quality of
exceeds expectations the consumer will attain more the banking sector in Banglore district was undertaken.
satisfaction.(Lehman, 2001). These expectations are It has been observed through these studies that several
based on ones own and others experiences. Most factors affect the quality of banks.
CHAPTER-3
Research Methodology
As service quality reflects the way the banks are which account is held, type of bank, type of account
performing, this study attempts to explore the perception and duration of account held
of customers in respect to the services provided by the
H1: Service quality rating is not independent of
banks. The entry of private and foreign banks, the nature variables such as age, gender, employment, income,
of functioning of these banks and the promotional attempts
city, bank in which account is held, type of bank,
of these banks has changed the landscape of the Banking type of account and duration of account held
sector in India. In respect to customer services there are
Hypothesis 2
notable perceived differences. Hence this study on
customer service quality of Indian banks looks for bringing H0: The servqual gap is same in Delhi, Kolkata,
out the differences between perceptions of customers of Pune and Bangalore.
these banks. This study is descriptive and analytical in H1: The servqual gap is not same in any two places.
nature.
Hypothesis 3
3.1 Objectives
H0: The servqual gap is same in private, public
The study has been undertaken with regard to the sector and foreign banks.
following objectives:
H1: The servqual gap is not same in any two types
(a) To identify degree of importance attached to of banks.
various dimensions of service quality viz.
3.3 Sources of Data
reliability, responsiveness, empathy, tangibles
and assurance by the customers. The study relies on both primary as well as secondary
data. The source of the secondary data is drawn from
(b) To compare the public, private and foreign
Reserve Bank of India publications and the sites of the
banks on the basis of customers expectations
banks to which respondents are customers. Various
and perceptions of quality of services.
journal articles have been referenced for understanding
(c) To find the gap between customers the background of the study.
expectations and perceptions of quality of
For obtaining primary data, a structured questionnaire
services for public, private and foreign banks.
is designed to collect data from customers of Banks.
(d) To understand the perception of the employees The questionnaire consisted of four parts. Part A had
of public, private and foreign banks and find 26 statements on 6 dimensions to measure the
out the challenges faced by them to deliver expectations of the customers. Part B consisted of the
expected services profile of the customers; Part C had 26 statements on 6
(d) To evaluate the performance of public, private and dimensions to measure the perception of the customers
foreign banks on the basis of quality of services. of the banks. Part D had open ended questions to avail
(e) To make suggestions for improvement of quality insights into the perceptions of the customers. The
responses for the statements in Part A and C were
of services in public, private and foreign banks.
measured on a likert scale of servqual tool.
3.2 Hypotheses for the Study
An interview schedule is prepared to collect data
The main hypotheses that have been set for the
from Bankers. In depth interviews are conducted
study are: with the help of the interview schedule.
Hypothesis 1 3.4 Sampling Method
H0: Service quality rating is independent of variables such
The sampling method used is proportionate stratified
as age, gender, employment, income, city, bank in
Random Sampling. The total sample size is 600. This
325
326 CH. 3 : RESEARCH METHODOLOGY
sample comprises of 150 respondents of each of challenges banks need to focus on improving the
four cities namely Delhi, Bangalore, Kolkata and service quality, the importance of service quality in
Pune. Again out of 150 customers of each city, 50 banks is discussed in this chapter.
respondents are customers of each category of Chapter 2: Service Quality
public, private and foreign bank respectively. Out of
This chapter discusses the dimensions of service quality
50 customers of one city of each type of bank, not
viz. reliability, responsiveness, empathy, tangibility and
less five customers belong to each occupation. 30
assurance. An in-depth literature review on service quality
bank employees across all the banks where the
and customer satisfaction has been presented.
respondents have their account have been chosen
as the sample to obtain bankers perspective. Chapter 3: Research Methodology
3.5 Data Analysis This chapter presents a well structured research
methodology which acts as a blue print for the entire
The data is analyzed by finding the mean scores of
study.
the various servqual dimensions both for
expectations and perceptions. Such mean scores Chapter 4: Respondents Profile
are compared with each other to find the gaps This chapter depicts the profiles of 600 respondents,
between expectations and perceptions. The service who are the customers of banks residing in four
quality gaps of customers of various types of banks cities namely Bangalore, Delhi, Kolkata, Pune. The
across cities are compared. Further these gaps are survey has captured data from customers of 23
cross tabulated with the profile of consumers. different banks in India.
ANOVA has been used to test the hypotheses.
Chapter 5: Customer Service Quality Compared
3.6 Scope of the Study with Respondents Profile
The study encompasses customer service quality of all This chapter gives insights of customer service quality
three types of banks namely private, public and foreign rating across categorical variables. The analysis is
banks of four cities in India each located at various regions done using descriptive statistics like mean, number of
in India. The study covers respondents both customers of respondents and the standard deviations. ANOVA has
banks and bankers. The customers belong to various been used to test the hypothesis to establish
professions, various places, of both genders, with varied relationship between the customer service quality rating
income groups and varied age groups. and the categorical variables.
3.7 Limitations of the Study Chapter 6: Customers Perception of Quality of
1. The study is limited to the study of expectations Bank Services
and perceptions of customers having an account This chapter presents the analysis of customers
in private, public or foreign banks. perception on five dimensions of service quality viz.
2. The perceptions and expectations of customers reliability, responsiveness, empathy, tangibility and
are limited to the time period of the study. assurance.
3. The perceptions of the bankers are limited only Chapter 7: Analysis of Service Quality Gaps
to the place of study. This chapter presents the analysis of service quality
4. The study is limited only to four cities of India (SERVQUAL) gaps perceived by customers regarding
namely, Delhi, Bangalore, Kolkata and Pune. the services provided by various banks in India, the gap
between expectations and perception of consumers on
Chapter Scheme
5 dimensions, Reliability, Assurance, Empathy,
Chapter 1: Introduction Responsiveness and Tangibility are measured.
This chapter discusses the role of banking industry in India
Chapter 8: Bankers Perception of Customers
and its contribution to the economic development of the
Service Quality
country, the industry is facing rapid changes such as new
This chapter discusses the bankers perception of
technology, economic uncertainties, competition and
quality of service provided to the customers. Analysis is
demanding customers, to meet the above
CH. 3 : RESEARCH METHODOLOGY 327
based on the data collected from the Bank employees banks, which will enable them to cope with the challenges
on various parameters. faced by banking industry.
Chapter 9: Findings, Conclusion and Suggestions
This chapter presents the findings of the study and
gives suggestion to improve the service quality of the
CHAPTER-4
Respondents Profile
328
CH. 4 : RESPONDENTS PROFILE 329
4.4 Annual Income of Customers: Out of 600 respondents, we found that majority of
The following table shows the annual income of the 229 (38%) are employed and least number of 32
customers who responded for the survey respondents (5%) are homemakers.
TABLE 5 :
4.6 Customers Bank :
Annual Income of Customers The following table shows the composition of Banks
included in the survey
Particulars Frequency Percentage
TABLE NO. 7 :
less than 1 lakh 118 19.7
Customers Bank
1-2.5 lakhs 229 38.2
Frequency Percentage
2.5-4 lakhs 100 16.7
4-10 lakhs 58 9.7 SBI 90 15.0
4.7 Types of Account : 67.8% respondents have an account for less than 3
The following table shows four types of accounts of years, 22.5% respondents have their accounts
the respondents between 4-8 years, 4.3% respondents have account
for 9-15 years, 5.3% respondents have account for
TABLE NO. 8 :
more than 15 years.
Account type of Respondents
Out of 600 respondents, a majority of 407
Particulars Frequency Percentage respondents have an account from past 3 years and
Savings account 387 64.5 32 respondents is the least number and are having
Current 106 17.7 an account from last 15 years.
Deposit account 64 10.7 4.9 Summary Profile of Respondents:
Loan account 43 7.2 The total number of respondents to whom we
Total 600 100.0 contacted in the four cities i.e. Bangalore, Delhi,
Kolkata and Pune across the three types of banks i.e.
64.5% respondents are having savings bank account, private sector, Public sector and Foreign banks, is 600.
17.7% respondents are Current account Of the total respondents, 65% are male respondent and
holders,10.7% respondents have Deposit account female respondents constitute 35%. The majority of the
and 7.2% respondents have Loan Account. respondents (30.8%) belong to the age group of 25-34
Out of 600 respondents, a maximum number of 387 and the least number of respondents (8.00%) belong to
respondents are having savings account and a least the age group of above 65 years. It is observed that
number of 43 respondents are having loan account. 73% belong to an age group less than 44 years.
4.8 Duration of account : Majority of them (38.2% ) are earning an annual
income of Rs.1 lakhs to Rs.2.5 lakhs. Most of them are
The below mentioned table shows the period for
employed and the large group constituting 64.5% holds
which the account was held by the respondents.
savings bank account.
TABLE NO. 9 :
Duration of account
Particulars Frequency Percentage
0-3 years 407 67.8
4-8 years 135 22.5
9-15 years 26 4.3
more than 15 years 32 5.3
Total 600 100.0
CHAPTER-5
3.9
3.8333
3.85
3.8
3.75 3.7451
3.7 3.6973
3.65 3.6481
3.55
3.5
3.45
3.4
less than 25 25-34 35-44 45-54 55-64 more than 65
years years
The mean scores of service quality rating by customers no significant relationship between age and the
is more or less the same across all age groups. There service quality rating of customers.
is no much difference in the perception of customers of 5.2 Customer Service Quality Rating distributed
various age groups. However, the satisfaction level of across Gender
customers in the age group of more than 65 years was
Gender Mean N Std. Deviation
the highest with the mean score of 3.83 and the lowest
satisfaction was of those customers who belonged to Male 3.6266 391 .94663
the age group less than 25 years. Further the ANOVA Female 3.7033 209 .87048
test which was run on the data also shows that there is Total 3.6533 600 .92082
331
332 CH. 5 : CUSTOMER SERVICE QUALITY COMPARED WITH RESPONDENTS PROFILE
were more in number and the data dispersion was 5.4 Customer Service Quality Rating distributed
greater than the data dispersion of the female customers. across Income groups
5.3 Customer Service Quality Rating distributed
Annual Income (Rs.) Mean N Std. Deviation
across occupational groups
less than 1 lakh 3.4576 118 .88331
Occupation Mean N Std. Deviation 1-2.5 lakhs 3.5633 229 .99192
Employed 3.6348 230 .93762 2.5-4 lakhs 3.8300 100 .77921
Professional 3.5817 153 .93622 4-10 lakhs 3.6379 58 .91188
Business 3.9444 90 .87873 10-15 lakhs 3.8036 56 .84034
Student 3.4906 53 .84632 More than 15 lakhs 4.1282 39 .83286
Retired 3.7619 42 .87818 Total 3.6533 600 .92082
Homemakers 3.4375 32 .87759
Total 3.6533 600 .92082
CH. 5 : CUSTOMER SERVICE QUALITY COMPARED WITH RESPONDENTS PROFILE 333
A significant observation is that customers with income The mean satisfaction score in Delhi is highest. The
of more than Rs.15 lakhs have expressed a very high three cities Delhi, Bangalore and Kolkatta have means
level of satisfaction to the services of Bank. Banks above the average. Pune reveals a score which is less
probably focus more on the high networth individuals than the average. However, the contrast is that when
and business classes. Hence the rating is 4.12 on 5. the servqual gaps are studied, it is identified that the
Respondents with incomes of Rs.10 to 15 lakhs and servqual gaps in Pune are lesser than that is other
Rs.2.5 to 4 lakhs have a satisfaction score higher than cities. The ANOVA computations have revealed that
the average mean score. The lowest rating is given by there is a significant relationship between the service
the customers with income less than Rs.1 lakh income. quality rating and the cities.
These respondents are 118 in number. The ANOVA 5.6 Customer Service Quality Rating distributed
results also show that there is a significant relationship across Banks
between the service rating and the income of the
Name of Bank Mean N Std. Deviation
customers.
SBI 3.2556 90 1.11739
5.5 Customer Service Quality Rating distributed
IDBI 3.8800 25 .92736
across Cities
HSBC 3.6964 56 .91293
City Mean N Std. Deviation
STANDARD CHARTERED 3.4286 42 1.01556
Pune 3.3245 151 1.10484 ICICI 3.8519 54 .95971
Kolkatta 3.6800 150 .68854 HDFC 3.7467 75 .85572
Delhi 3.8824 170 .82723 CENTRAL BANK 4.0000 1 .
Bangalore 3.7054 129 .93877 KARNATAKA BANK 3.5000 2 .70711
Total 3.6533 600 .92082 UNITED BANK OF INDIA 3.0000 7 .57735
BANK OF INDIA 4.0000 2 .00000
BANK OF BARODA 3.7143 14 .82542
ALLAHABAD BANK 3.6667 3 .57735
PUNJAB NATIONAL
BANK 3.3571 14 .49725
ABN 4.1250 8 .83452
AXIS 3.6182 55 .70687
KOTAK MAHINDRA 3.5152 33 .87039
SYNDICATE BANK 3.2500 8 .46291
334 CH. 5 : CUSTOMER SERVICE QUALITY COMPARED WITH RESPONDENTS PROFILE
Name of Bank Mean N Std. Deviation The customer service quality rating has been very high in
UCO BANK 3.6667 9 .50000 case of private banks and low in case of public sector
banks. However, when we observe the servqual gaps
CORPORATION BANK 3.6667 6 .81650
there is no much difference between the three types of
CANARA BANK 4.2143 14 .97496
banks. ANOVA results on testing relationship between
YES BANK 3.8182 11 .75076
service quality rating and type of Bank has revealed that
CITI BANK 4.0769 52 .78830
there is a significant relationship between the two.
OBC BANK 3.5714 7 .97590
RBS BANK 3.7500 12 .86603
Total 3.6533 600 .92082
5.8 Customer Service Quality Rating distributed The table reveals that higher the duration of the
across duration for which account is held account held by customers, higher is the satisfaction.
Duration of account Mean N Std. Deviation Customer service quality is rated high by those
customers who have held the account for more than 15
0-3 years 3.6511 407 .91034
years, whereas, those who have held for 4-8 years
4-8 years 3.5704 135 .97384 have given a score of 3.57. The ANOVA computation
9-15 years 3.8077 26 .84943 has not revealed any significant relationship between
more than 15 years 3.9063 32 .85607 the period of account and customer service quality.
Total 3.6533 600 .92082
5.9 Customer Service Quality Rating distributed 5.10 Hypothesis to Test Independence of Service
across type of account held by customers Quality Rating from Categorical Variables
Account type Mean N Std. Deviation H0: Service quality rating is independent of variables
Savings account 3.5633 387 .93465 such as age, gender, employment, income, city,
bank in which account is held, type of account and
Current 3.6887 106 .87683
duration of account held.
Deposit account 3.8906 64 .85667
H1: Service quality rating is not independent of
loan account 4.0233 43 .85880
variables such as age, gender, employment, income,
Total 3.6533 600 .92082 city, bank in which account is held, type of account
and duration of account held.
Results of the ANOVA Test used to establish Relationship of service quality rating with Categorical variables
Independent Variable F Statistic P Value Significance At 5% Acceptance of Hypothesis
Age 0.956 0.444 Not significant H0 is accepted
Gender 0.946 0.331 Not significant H0 is accepted
Employment 2.846 0.015 Significant H1 is accepted
Income 4.761 0.000 Significant H1 is accepted
City 10.589 0.000 Significant H1 is accepted
Name of the Bank 2.327 0.000 Significant H1 is accepted
336 CH. 5 : CUSTOMER SERVICE QUALITY COMPARED WITH RESPONDENTS PROFILE
From the above table, it is brought out that customer of bank and the type of account. However, customer
service quality rating varies with categorical variables service quality rating does not vary with age, gender
like employment, income, city, name of the bank, type and duration of account.
CHAPTER-6
6.1 Analysis of Perception Customer Service Quality Banks. Foreign Banks gain attention here, that they are
rated high by the customers in all the service quality
To assess the customer service quality, customer
perceptions on five dimensions were captured. The parameters. Public sector banks have been rated second
following chart presents the overall perception of the in all parameters except that of Responsiveness and
three different kinds of banks and the analysis of private banks stands the last in all the parameters.
customer perception based on each dimension 6.2 Reliability
Though the customer perception of the services on five The following graph shows the mean scores of
dimensions namely reliability, empathy, responsiveness, perception of customers on Service Reliability
tangibility and assurance have an average ranging from
3.3 to 3.6, there are differences in the perception of the
337
338 CH. 6 : CUSTOMER PERCEPTION OF QUALITY OF BANK SERVICES
The mean scores range from 3.35 to 3.64. This quick and prompt (3.38) and error free service
shows that there is reasonably a fair perception (3.35).
of service reliability of the Banks. However Interpretation:
following observations are made
Among all the parameters under reliability it is found
In case of Public sector Banks, online reliability is
that the perception towards online reliability has
higher (3.7), followed by reliable information (3.64),
been highly rated by the customers irrespective of
error free service (3.5), consistent performance the type of bank. The least rated parameter is
(3.465) and quick and prompt services (3.365). quickness and promptness in handling the services,
In case of Foreign Banks, online reliability is this rating holds good for all the types of banks.
higher (3.7) followed by consistent Another observation is that private sector banks are
performance (3.61). Bank provides reliable rated low for all the parameters and foreign banks
information (3.59), error free service (3.525) are rated high for all the parameters in reliability.
and quick and prompt services (3.48). 6.3 Empathy
In case of Private sector banks, reliable information
The following graph shows the perception towards
is higher (3.595) followed by consistent performance
customers on Empathy
(3.465), online reliability (3.435),
CH. 6 : CUSTOMER PERCEPTION OF QUALITY OF BANK SERVICES 339
The Mean scores on empathy ranges from 3.225 In case of Private Sector Banks, banks are
to 3.635 showing average to good performance considered to be more empathetic by keeping
by Banks in being empathetic to customers working hours most suitable to customers and,
while providing Bank services therefore, it is higher with a mean score of 3.57
Consumer perception on Empathy Parameters followed by employees understand needs of
customers (3.475), sincere concern (3.435),
In case of Public Sector Banks, Banks are
Willing to help (3.43) and conveniently located
empathetic by keeping working hours most
(3.31).
suitable to customers which has a mean score of
3.59, followed by located in a place convenient to Interpretation
customers (3.54), employees are willing to help From the above graph, we could see that the bank
(3.505), understanding needs of customers and employees nature of willing to help customers is
responding accordingly (3.459) and employees rated high in case of foreign banks, while showing
show sincere concern towards customers (3.39). sincere concern in solving customer problems
In case of foreign banks, willing to help is higher related to bank operations remains the least in case
(3.505), followed by understanding needs (3.62), of public sector banks. On the other hand private
suitable working hours (3.61), sincere concern sector banks hold a least score on both the above
(3.59) and conveniently located (3.225). parameters compared to foreign banks.
340 CH. 6 : CUSTOMER PERCEPTION OF QUALITY OF BANK SERVICES
6.4 Responsiveness
The following graph shows the profiles of the
Responsive parameters:
Consumer Perception of Responsive Parameters
The Mean scores on responsiveness ranges For Private Sector Banks too, customer
from 3.31 to 3.83 showing good performance by support services are highly rated with the mean
Banks in being responsive towards customers score of 3.57, followed by Less waiting time for
queries while providing services. getting the services with the mean score of
Consumer perception on Responsive Parameters 3.55, convenient location with the mean score
of 3.39 and quick response on the customer
For Public Sector Banks, out of 5 variables
queries with the mean score of 3.33.
tested, Customer support services provided by
the banks is higher with a mean score of 3.53, Interpretation: Considering all three types of banks,
followed by easy location of the bank and it is clearly understood that the customer support
elimination of errors with a score 3.37. While services provided by the banks remain the highest
responding quickly and making the customers responsiveness parameter.
wait for a lesser time comes next with a mean When we talk about the waiting time for the services,
score of 3.37 and 3.31 respectively. private banks holds the first place followed by
For Foreign Banks, customer support services foreign and public sector banks. But in terms of
provided by the bank is rated high with mean quick response to the customers, the observation is
score of 3.83, followed by quick response by quite different. Foreign bank comes first in hand,
the employees with a score of 3.56, and ease followed by the public sector banks providing quick
of locating the bank and less waiting time for response than the private sector banks.
availing the services holds mean score of 3.46 6.5 Assurance
and 3.45 respectively. The following graph shows the perception of the
Assurance provided in giving services by banks:
CH. 6 : CUSTOMER PERCEPTION OF QUALITY OF BANK SERVICES 341
The mean score for assurance in providing the service is low scored with mean score of 3.6
service to the customers is 3.26 to 3.81, which is and 3.425.
a good score showing the assurance provided For Private Sector Banks safety assurance is
by the banks to the customers. rated high with a mean score of 3.505, followed
Consumer perception on Assurance Parameters by trust worthiness with a mean score of 3.5,
For Public Sector Banks out of 5 variables tested, knowledge of the employees in the operation is
Knowledge of the employees in the operations is of 3.45, kindness and politeness of the
high with a score of 3.81, followed by employees with a mean score of 3.425, and
trustworthiness & safety assurance on various feeling secured with online banking services
services with a score 3.76, feeling secured with and process execution time is rated low with a
online banking service with a score of 3.615, score of 3.315,3.26 respectively.
process execution time and kindness & Interpretation
politeness of the employees comes with a least It is very interesting to know that out of all parameters
score of 3.54 and 3.48 respectively. on assurance, public sector banks are rated high for
For Foreign Banks safety assurance on services is the knowledgeable employees held within. While the
higher with a mean score of 3.775, followed by assurance for the process execution time is least rated
kindness and politeness of the employees with a in case of private sector banks.
mean score of 3.76, process execution time with a Overall, Public sector banks show more credits
score of 3.675, Trustworthiness with a score of 3.63, towards the assurance factor compared to the
knowledge of the employees in the operations and foreign and private banks.
feeling secured with online banking
342 CH. 6 : CUSTOMER PERCEPTION OF QUALITY OF BANK SERVICES
6.6 Tangibility
The following graph shows the profiles of Tangibility
parameters:
The mean score for the tangibility factor ranges location and the visual appealing layout of the
from 3.27 to 3.7, which is a moderately agreeable banks scores the least with 3.575 and 3.51
score for the banks. respectively.
Consumer perception on Tangibility Parameters For Private Sector Banks availability of
For Public Sector Banks, out of 5 variables tested, equipment is higher with mean score of 3.525,
favorable location of the bank is the highest with a followed by visually appealing layout with mean
mean score of 3.7, which is followed by the score of 3.51, central location of the banks with
availability of equipment visually appealing layout of score of 3.495, and professional dressing of
the banks with mean score 3.565, then comes the the employees and attractive printed material
professionally dressed employees with a score of scores least score of 3.41 and 3.275.
3.55 and lastly comes the attractive printed material Interpretation
with a least mean score of 3.445. Central location of the banks and employees
For Foreign Banks, availability of equipments and professional way of dressing is considered to be the
the professional dressing of the employees scores top scorer in terms of tangibility parameters.
high with 3.7 and 3.695 scores respectively. Visual appearances of public sector banks rank
Whereas, attractive printed material provided by the highest, while both the private and foreign banks are
banks scores 3.605. Lastly comes the central considered at the next same level.
CHAPTER-7
This study aimed at bringing out the service quality between expectations and perception of consumers
gaps perceived by customers regarding the services on 5 dimensions, Reliability, Assurance, Empathy,
provided by various Banks in India. These gaps were Responsiveness and Tangibility.
captured on various dimensions of service quality as In this study, customer service quality gaps on five
given in the servqual tool developed by Parasuraman dimensions of quality of three types of Banks namely
et.al. Parasuraman, Zeithaml and Berry (1985, 1988) public sector Banks, private sector banks and foreign
posited and operationalized service quality as a banks located in four different cities is analyzed.
difference between consumer expectations of what
7.1 Servqual Gaps
they want and their perceptions of what they get.
Based on this conceptualization and operationalization, Identification of Gaps (Expectation Vs. Perception) in
a service quality measurement scale called customer service quality (parameter-wise gaps)
SERVQUAL was proposed. According to the servqual Reliability, Assurance, Empathy, Responsiveness
tool, service quality be measured based on the gap and Tangibility
The above graph captures the servqual gap score of chronbach alpha value is 0.865 shows a very high
customer service quality on overall gap dimensions. The degree of reliability.
gap score is the difference between the mean score of Interpretation
perceptions and the mean score of expectation. We
The tangibility dimension (Location, Employees
observed that responsive gap is higher (0.957), followed
dressing, Printed materials, Availability of equipment &
by reliability gap (0.897), empathy gap (0.863), assurance
visually appealing layout) holds a least servqual gap
gap (0.831) and tangibility gap (0.684).
between the customers expectations and perceptions.
The reliability test for the five dimensions was carried
It is very obvious that irrespective of the type of bank,
out by computing the chronbach alpha value. The
the gap between the customers expectations and
343
344 CH. 7 : ANALYSIS OF SERVICE - QUALITY GAPS
perceptions on the responsiveness dimension (Customer and prompt services is highest with a servqual gap
support, less waiting time, ease of location and quick score of -1.08, followed by providing error free
response) is the highest. This show, of all the dimensions service (-1.01), reliable information on the operations
of service quality, banks are lagging behind in being (-0.98), consistency in performance (-0.9) and online
responsive to customer requirements. However, the gap reliability (-0.68).
scores on reliability, assurance and empathy dimensions Interpretation
seems to be more or less the same.
The average servqual gap score of reliability was found
It is advisable that the banks should focus more on to be -0.897, which is a moderately high. While
Responsiveness dimension to win the customers. considering the various parameters under the
Banks also have to look into aspects like reliability, dimension reliability, like reliable online services,
assurance and empathy in delivering their services. consistency in performances, providing reliable
Banks have created enough tangible cues to information and providing services as promised, quick
impress upon the customers. & prompt and error free services, it is very obvious that
7.2 Servqual Gaps for each the banks have high servqual gap score in providing
Dimension Reliability Gap quick and prompt services and providing error free
services to the customers. Hence, the banks in India,
Various statements which measures perceptions and
are lagging behind in providing a reliable quick and
expectations of customers in respect to reliability of
error free services. The service quality could be
Bank services were captured and the gap pertaining
improved when the reliability on the bank services are
to each statement was analyzed. The following
enhanced with more customer expectations.
graph shows the gaps in each of the statement
concerning reliability. Empathy Gap
Gaps on various statements pertaining to Five Statements which reflect empathy in banking
Reliability of banking services services were asked to customers to give their
expectations and perceptions. The differences in the
The below graph captures the servqual gap score of
expectations and perceptions of customers have
customer service quality on reliability dimension. We
been reflected in the following graph:
observe the quality gap in respect to providing quick
CH. 7 : ANALYSIS OF SERVICE - QUALITY GAPS 345
The above graph captures the gap score of convenient location of the banks and suitable working
customer service quality on empathy dimension. It is hours have a comparatively less effect on the
observed that sincere concern of the employees is dimension. Because these are areas where the
higher (-1.08), followed by their willingness to help management takes the control. Hence, it is necessary
customers (-0.88), their suitable working hours (- that those employees who interface the customers
0.77), understanding customer needs (-0.75) and irrespective of the banks, should be able to understand
convenient location of the bank (-0.7). the customers needs from their point of view, so that
Interpretation they can fulfil the customer expectations.
The average mean gap score for the dimension empathy Responsiveness
was found to be -0.863. The empathy parameters like the Various statements which measures perceptions and
employees sincere concern towards the customers, their expectations of customers in respect to banks
willingness to help and their understanding of the responsiveness of services were captured and the
customer needs has great impact on the dimension, which gap pertaining to each statement was analyzed. The
lies within the interest of the employee. While the other following graph shows the gaps in each of the
two parameters like the statement concerning responsiveness.
346 CH. 7 : ANALYSIS OF SERVICE - QUALITY GAPS
The above graph captures the servqual gap score of of the banks. Hence, it is very conditional that the
customer service quality on responsiveness dimension. banks take continuous efforts in quickly locating and
It is observed that quickness in locating and eliminating eliminating the errors, however, customers waiting
errors is high (-1.08), followed by lesser waiting time for time for availing the services remains to be in the
services (-1.06), quick response for customer queries (- hands of the employees, provided all processes are
0.98) and necessary customer support (-0.72). carried out systematically.
Interpretation Assurance
The average mean gap score for Responsiveness was Various statements which measures perceptions and
found to be -0.957. The parameters like finding errors & expectations of customers in respect to banks
eliminating them and the process waiting time in the banks assurance of services were captured and the gap
take a major part in defining the dimension pertaining to each statement was analyzed. The
responsiveness. And customer support services and following graph shows the gaps in each of the
their quick response to customer queries also had to be statement concerning assurance.
taken care of to improve the service quality, irrespective
CH. 7 : ANALYSIS OF SERVICE - QUALITY GAPS 347
The above graph captures the servqual gap score of trustworthiness of the employees, feeling of security
customer service quality on Assurance dimension. It on the bank and safety assured by the banks have
is observed that assured execution time is high (- comparatively lesser gaps than the above mentioned.
0.9), followed by kind and politeness of the Hence, it advisable that all the banks concentrate on
employees (-0.89), trustworthiness (-0.82), working within the promised process execution time
knowledge of the employees (-0.82), feeling secured and also improvises the employees soft skills.
(-0.81) and safety assurance (-0.74).
Tangibility
Interpretation
Various statements which measures perceptions and
The average mean gap score for the dimension expectations of customers in respect to banks
Assurance was found to be -0.831.It can be observed tangibility of services were captured and the gap
that the process execution time and kind & politeness pertaining to each statement was analyzed. The
of the employees are noticeable factors contributing to following graph shows the gaps in each of the
the average Assurance gap. The other parameters statement concerning tangibility.
like knowledge of the employees in the operations,
348 CH. 7 : ANALYSIS OF SERVICE - QUALITY GAPS
The above graph captures the gap score of Tangibility was found to be -0.684, which shows very
customer service quality on tangibility parameter. It obvious that the availability of the necessary equipments
is observed that visually appealing layout of the bank and the visual appealing layout of the banks needs to be
and the availability of necessary equipment has a considered for further improvements, so that Banks will be
high gap score of (-0.72), followed by central more appraised by the customers.
location of the bank (-0.70), the availability of 7.2A Comparison of Servqual Gaps in Four Cities
attractive printed materials (-0.67) and the in India
employees professional dressing manner (-0.60).
The service quality gaps were compared across the
Interpretation following four cities Delhi, Kolkata, Pune and Bangalore.
The average servqual gap score for the dimension
CH. 7 : ANALYSIS OF SERVICE - QUALITY GAPS 349
The above graph captures the servqual gap score of The mean servqual gap is not same in any two
cities on overall gap dimensions. We observed that cities. There is significant difference in the mean
gap is higher in Delhi (1.027), followed by Bangalore servqual gap across the cities Pune, Kolkata, Delhi
(0.996), Kolkata (0.738) and Pune (0.622). and Bangalore. Further, the equality in mean overall
Interpretation: gap in two cities taken together is tested and the
following table gives the p values for the test.
It could be clearly interpreted that smaller city like Pune
MULTIPLE COMPARISONS
has the lesser gap compare to other cities like
Bangalore, Delhi and Kolkata. The observation infers Servqual Gaps against Cities
that the metro cities have much service quality gap Sig.
than the tier 1 & 2 cities. Its quite shocking that the
Pune Kolkata .429
metros lag behind in delivering quality service to the
Delhi .000
customers than the smaller cities. The banks in metros
need to improve on the quality of the services. Bangalore .000
The above graph captures the servqual gap score of Table showing the Servqual gaps dimension
cities on different dimensions. It can be observed wise for four cities in India
that in Pune, responsive gap is highest followed by City name Pune Kolkata Delhi Bangalore
empathy gap, reliability, assurance and tangibility. In Reliability Gap 0.638 0.884 1.048 1.016
Kolkata responsive gap is highest followed by Responsive Gap 0.750 0.943 1.056 1.085
reliability gap, empathy gap, assurance gap and Empathy Gap 0.689 0.770 0.995 1.003
tangibility gap. In Delhi responsive gap is highest Tangibility Gap 0.420 0.494 0.985 0.816
followed by assurance gap, reliability gap, empathy Assurance Gap 0.615 0.599 1.053 1.059
gap and tangibility gap. In Bangalore responsive gap Gap score 0.622 0.738 1.027 0.996
is highest followed by assurance gap, reliability gap,
empathy gap and tangibility gap. Reliability gap is highest Delhi and lowest in Pune.
Responsive gap and Empathy gap is more in
Interpretation:
Bangalore and lowest in Pune.
It is very implicit from the graph that the gap in the
Tangibility gap is highest in Delhi and lowest in Pune.
various dimensions does not vary much with the
cities. The curve is more alike for all the cities under Assurance gap is highest in Bangalore and lowest in
consideration for the study. We can also interpret Pune.
that all banks, irrespective of the cities have to be So it is very obvious that service quality gap exist the
more responsive in servicing the customers. The highest with a metro like Delhi and lowest in a small city
other actions like being empathetic, reliable and like Pune. Hence, it is very crucial that the banks in
providing service assurance to the customers do metro cities concentrate on the gap and enhance their
have a same line of variance with the cities. service quality to meet the customer expectations.
7.3 Comparison of Servqual Gaps based on
different Types of Banks
The above graph captures the servqual gap score of followed by responsive gap, empathy gap, assurance
Banks on different gap parameters. We observed that in gap and tangibility gap. In Public sector banks,
Private sector banks, assurance gap is highest followed by assurance gap is highest followed by responsive gap,
responsive gap, reliability, empathy and tangibility gap. In reliability gap, empathy gap and tangibility gap.
foreign banks, reliability gap is highest
CH. 7 : ANALYSIS OF SERVICE - QUALITY GAPS 351
The above graph shows the comparison of the From above table we can conclude that the servqual
servqual gaps of the three types of bank. overall gap is same in private, public sector and
We can find that the graph is almost similar for all three foreign banks, which means there is no significant
types of banks. Tangibility gap is lowest and difference in the gap across three types of banks.
responsiveness gap is highest in all the type of banks. Similarly using ANOVA, hypothesis was tested if the
And also we find that the curve is much favorable for gap scores of individual dimensions varied from one
the public sector banks having not much difference in another. The following table shows the F Statistic
the servqual gap scores on different dimensions. and the P Value for all the dimensions.
Hypothesis Testing to conclude if there is F statistic P Value
Significant difference between the Servqual Gaps Reliability 0.343 0.710
of Public Sector, Private Sector and Foreign Banks
Responsiveness 2.132 0.119
H0: The servqual gap is same in private, public Empathy 0.156 0.856
sector and foreign banks.
Tangibility 2.453 0.087
H1: The servqual gap is not same in any two types
Assurance 2.132 0.119
of banks.
ANOVA The above table shows that at significance level of
Sum of df Mean F Sig.
5% there is no difference between the gap values of
Squares Square the parameters across the three types of banks. At
Between Groups 1.412 2 .706 1.514 .221 10% significance level tangibility differs between the
Within Groups 278.350 597 .406 three types of banks.
Total 279.761 599
The above graph shows the servqual gap scores and Corporation Bank has the least servqual gap
obtained by each bank under the study in the score of -0.3883.
category of Public Sector Banks. Its very apparent that the public sector banks, has a
Interpretation lot many areas for improvement in the near future. It
Among 12 public sector banks under study Union Bank should be taken as a serious concern and worked
of India has the highest servqual gap score of -1.5381, upon, so that they could match the other sector
banks service quality, especially win back the trust
factor associated with the customers.
CH. 7 : ANALYSIS OF SERVICE - QUALITY GAPS 353
The above graph shows the servqual gap scores HSBC scoring in between with -0.5637 and -0.6349
obtained by each bank under the study in the respectively. Though foreign banks are known for their
category of Foreign Banks. premium service quality, there are banks with greater
Interpretation: gaps as same as the banks under other categories in
India. Its very necessary that the foreign banks
Among the four foreign banks under the study, Citibank
concentrate on the service quality as there will always
has the highest gap score of -1.2773, and ABN has the
be greater expectations from the customers.
least score of -0.4088, with Standard Chartered and
The above graph shows the gap scores obtained by each bank under the study in the category of Private Banks.
The expectations and perceptions of the customers banks. Bankers also say that they have incorporated
were brought out in the previous chapter. There is information technology in their day-to-day operations
likeliness that the Bankers perception about the to provide services. A few say that the time
quality of services delivered to the customers would management is efficiently practiced in their banks
be different from that of the customers. Foreign Banks
Data collected from the Bank employees of 30 Majority of the bankers feel that foreign banks are
different banks and their perceptions on various delivering services to the customers as promised.
parameters have been summarized and presented Foreign banks also believe that they work in a
in the following paragraphs: disciplined and prompt way. It is also to be noted
8.1 Rendering services as promised to its that foreign banks serve HNI customers to a large
customers Public Sector Banks extent in a very prompt way.
The same parameter measured with customers 8.2 Providing reliable services
reveal that private sector banks are rated low for all Provision of reliable service quality is necessary in
the parameters and foreign banks are rated high for meeting several requirements such as customer
all the parameters in reliability. satisfaction and its consequent loyalty, attracting new
354
CH. 8 : BANKERS PERCEPTION OF CUSTOMER SERVICE QUALITY 355
8.3 Employees willingness to help customers communicating in local languages. A few accepted
The employee behavior towards the customers that at times the employees lose control and they
represents a big challenge till today. The employee yell at the customers, depending on the situation.
interfacing the customers delivers the organizations Foreign Banks
products and services to customer and transmits All the employees of the foreign banks are very sure in
customer feedback back to the organization. These delivering a professional service to their customers.
relationships influence the employee and the banks Majority of them say that they willingly help the
in providing quality service to the customers. customers and understand the customer requirements.
Public Sector Banks A very few employees felt that there might be some
Majority of the interfacing employees very strongly feel problem in serving the customers in some tier 2 cities.
that they try to understand and express their Private Banks
willingness to help the customers. They also revealed The survey data reveals that majority of the private
that the employees are eager to help the customers by banks identify customer needs and help them with
356 CH. 8 : BANKERS PERCEPTION OF CUSTOMER SERVICE QUALITY
special interest. A few also say that they help customers in environment without any pressure and hence, they
filling forms, giving information and other guidelines. Some easily understand the customer needs and help
banks say that they work under a very calm them accordingly.
8.4 Employees being caring and providing Few banks reveal that they take customer as a burden
individual attention to the customers and fulfil their requirement without any interest; in fact
All the banks feel that their employees are very caring they do it as their daily duty. On the other hand, few
and give special attention to each customer. Some other banks say that they concentrate only on premium
bankers feel that they are having very less number of account holder customers, and not on all customers.
employees, so they are not able to take care of Private Banks
individual customer. Some of Public Sector Banks feels Almost all the Private Banks feel very proud that they
that their employees provide individual attention to old give individual attention and care to their customers.
age peoples, when they visit to collect their pensions or Most of the banks say that their employees give
any other services. Some of Foreign Banks feels that individual attention to every customer like opening an
their employees are very co-operating and caring account, filling application forms etc.
towards all customers. Most of the Private Banks feels
8.5 Employees knowledge about bank operations
that they give special attention to every customer by
basic services like filling up the application. Employees expertise and knowledge on the bank
operations holds a big hand in satisfying the
Public Sector Banks
customers in terms of service quality. All the banks
Most of the Public Sector Banks feel that their say that their employees are well qualified and
employees are very caring in terms of any services suitably chosen to serve the customers.
towards the customers; they specially give more
Public Sector Banks
attention to the old age employees, but few banks
reveal that in order to keep the reputation of the banks, Most of the Public Sector Banks reveal that they recruit
they always take care of the customers, and some of only those candidates with a minimum degree
the banks feel that they should have more employees qualification, which is a better way to understand the
to give individual attention to each customer. service quality. Few other banks also say that they give
compulsory training to their employees, so that they
Foreign Banks
treat the customers as their friend and convey them
Some of Foreign Banks feel that they are caring, co- trust and confidence. A very few banks say that the
operative and give individual attention to all customers.
CH. 8 : BANKERS PERCEPTION OF CUSTOMER SERVICE QUALITY 357
senior most persons in the role are not tech savvy, which make them easy to convey trust and
i.e. they are outdated and do not have much confidence to their customers.
knowledge about customer relations. Private Banks
Foreign Banks All the Private Banks under consideration reflect the
Almost all the foreign banks say that their employees same information as shared by the other Public Sector
with masters degree have good inter-personal skills in & foreign banks. Almost all the banks say that they
order to deliver services to the end customers. Most of have knowledgeable and qualified employees that
the banks have a structured orientation & training would convey trust and confidence. Most banks say
programme even for the experienced employees, so that they recruit candidates with master degrees from
that they can handle the varied needs of customers. A premium schools, in order to maintain a good pool of
few banks also say that their employees are trained personnel. Private Banks also feel that their
knowledgeable on the basic operations of the banks, employees grasp things quickly and convey confidence
and trust to their customers through the services.
8.6 Physical facilities of the bank and ambience ambience in their setup and they look less attractive
Most of the banks feel that they are having excellent compare to the foreign banks and need to improve
physical facility and attractive ambience in their banks. In on the infrastructure.
these two attributes, survey becomes very interesting, i.e, Foreign Banks
though all the public sector and private sector banks say Majority of the foreign banks are very confident that
that they have good ambience and facilities, they always they have an attractive aesthetics in their banks. They
compare themselves with foreign banks, because, they feel that their physical outlook is more exciting and
feel that the foreign banks always have excellent inviting to the customers. Majority of the banks are
ambience and physical facilities and perceive that the much implicit about their interiors and other facilities.
standard of the foreign banks are always high.
Private Banks
Public Sector Banks
To talk about the private banks, most of them are very
Majority of the public banks claimed that their appearance sure about their physical appearance and ambience.
and ambience is attractive to the customers. They also Majority of them feel that their outlook is as good as
say that customers like their cleaner environment and foreign banks. The bankers also said that they have a
parking facilities. A very few public sector banks said that very attractive and welcoming environment for their
they do not have much attractive customers. A few also revealed that their banks were
358 CH. 8 : BANKERS PERCEPTION OF CUSTOMER SERVICE QUALITY
8.7 Dress and appearance of bank employees banks feel that they should have dress code or uniform
All the bankers feel that their employees are neatly for entire banking industry to maintain standard of the
dressed, well groomed to look professional. bank.
Employees of the bank always wear formal dresses, Private Banks
which looks more professional in the Bank. Most of Private Banks maintains formal dresses to look
Most of the public sector bank employees dressed professional. Some private Bank are very strict about
traditionally to look professional. In Foreign bank the employees dressing. They feel that it is the basic
employees have dress code or uniform to maintain necessity for banking profession.
professionalism. In private sector bank, they feel that it 8.8 Three things that customers should appreciate
is a basic requirement to wear formal dresses to look in bank
professionals. Most of the banks feel that customers should appreciate
Public Sector Banks about their employees, they are having skills to
In public sector banks, they feel that they are very understand customers problem and helping them with
professional in terms of dresses and appearance. proper solutions. Banks feel that employees are very
They are always well dress and formal dresses to well organized and very knowledgeable about the
services. Private Banks feel that customer should
maintain professionalism. Some of the public sector
appreciate about their online facility, customized
banks feel that their employees wear traditional dresses
services and security about customers account details,
and they have to get upgraded themselves with modern
which is very trust worthy. On the other hand Foreign
fashion.
Banks feel that their interest rates, procedures of loans,
Foreign Banks
responses given by our employees are appreciable as
In Foreign Banks, for professional look employees compared to other Banks.
always wear suitable dresses. Some of the foreign
CH. 8 : BANKERS PERCEPTION OF CUSTOMER SERVICE QUALITY 359
What customers should appreciate in the bank What are the challenges faced by Banks
(Bankers version)? (Bankers version)?
Public Sector Banks Foreign Banks Private Sector Banks Public Sector Banks Foreign Banks Private Banks
Honest, disciplined Trained Quick service High expecta- Quick service
and trust worthy employees Friendly employees tions of
employees customers
Reasonable Interest Bank Reasonable Interest Handling customers Non-recovery Making customers
rates performance rates attitude of loans understand rules and
regulations
Employee patience Simple Bank Simplified loan
and understanding procedures procedures Communication with Maintaining Convincing customers
levels customers rapport and in loan sanctioning
communication and loan recovery
Public Sector Bank with customers
9.1 Findings on Service quality Rating compared like Citi Bank and ABN AMRO have also
with Respondents profile gained good credit from its customers with
The satisfaction level of customers in the age mean satisfaction score like 4.12 and 4.07. The
group of more than 65 years is highest with the least score is of Union Bank of India.
mean score of 3.83 and the lowest satisfaction The customer service quality rating has been
is of those customers who belonged to the age very high in case of private banks and low in
group less than 25 years. case of public sector banks.
The satisfaction level of customers in respect Higher the duration of the account held by
to service quality was rated higher by female customers, higher is the satisfaction. Customer
customers as compared with male customers. service quality is rated high by those
There is considerable variation observed in the customers who have held the account for more
ratings given by customers belonging to than 15 years, whereas, those who have held
various occupational groups. for 4-8 years have given a score of 3.57.
Homemakers respondents who were the least Customer service quality rating varies with
number, expressed least satisfaction of the categorical variables like employment, income,
customer service quality of Banks. Business city, name of the bank, type of bank and the
class has given a high rating to the quality of type of account. However, customer service
Banking services. quality rating doesnt vary with age, gender and
duration of account.
Banks focus more on the high net-worth
individuals and business classes Hence 9.2 Findings from customer perception of
satisfaction of high income group and business various dimensions
class have expressed high levels of satisfaction. Foreign Banks are rated high by the customers in all
A significant observation is that customers with the service quality dimensions. Public sector banks
income of more than Rs.15 lakhs have have been rated second in all parameters except
expressed a very high level of satisfaction in that of Responsiveness and private banks stands
respect to the services of Bank. the last in all the parameters.
361
362 CH. 9 : FINDINGS, SUGGESTIONS AND CONCLUSION
Public sector banks are rated high for the 9.3 Findings from Bankers Perception on
knowledgeable employees held within, while the Service Quality
assurance for the process execution time is least All the three types of banks public, private and
rated in case of private sector banks. Public sector foreign banks perceive that they are good in all
banks show more credits towards the assurance the five dimensions of service quality namely
factor compared to the foreign and private banks. reliability, empathy, responsiveness, tangibility
Tangibility and assurance
Central location of the banks and employees Three things customers should appreciate
professional way of dressing is considered to be the in bank
top scorer in terms of Tangibility parameters. In Public sector banks, honest, disciplined and
Visual appearances of public sector banks rank trustworthy employees, reasonable interest
highest, while both the private and foreign banks are rates, high employee understanding levels are
considered at the next with same level scores. the three things that was highlighted.
Among the foreign banks under study, Citi Public sector banks suggest: increase human
Bank has the highest servqual gap, and ABN resources, hire skilled and young staff, and
has the least servqual gap score. bringing technological improvements
CH. 9 : FINDINGS, SUGGESTIONS AND CONCLUSION 363
Foreign bank employees suggest: train employees 1. Public sector banks are always known for the
on interpersonal relationships, focus on other trust, they have developed with the customers
classes of society than focusing only on HNI and for their existence in the society for a very
customers and increase the number of Branches long period of time. Hence, it is suggested that
Private sector bank employees suggest: the public sector banks keep the trust factor and
Recruit employees who are well versed in local improve on the other aspects of service quality.
language, Increase number of branch nation- 2. Also it is advisable that the public sector banks
wide including rural areas, Improvement in associate more with the technology and good
technology and infrastructure. infrastructure facilities to provide timely and
9.4 Suggestions efficient service to the customers.
1.The expectations of the customers are on the 3. The customer needs grow with no limits, and it
increase, especially those customers who belong to is very much evident from the various service
generation Y. Hence banks have to revisit their offerings by the other banks day to day. Not
traditional practices and adapt themselves to satisfy just to rebel the competition with the private
the needs of the young customers. and the foreign banks, but also to retain the
existing customers, it is very necessary that the
2.Banks are focusing more on High net worth
public sector banks take a charge on this.
individuals, and business classes, the other
customer segments have been ignored to a very 4. Foreign Banks try to concentrate on high net
great extent, reflecting low satisfaction scores from worth individuals in the society. It is eloquent that
the latter. A conscious effort is needed to work on all they concentrate on all levels of customers, which
the segments and, make every segment profitable. would give them larger customer pool.
3. Metro cities satisfaction scores were high but 5. Foreign banks are well known in the society for
when we look at individual servqual gaps, the gaps their well of infrastructure and the updated
are also high and significant. This shows that there technology they use. And it apparently reflects
is a need for the bank branches in metros to work on a high level of expectation from the customers.
details rather than focusing on the big picture. Hence it is imperative that the foreign banks
keep themselves ahead in all the aspects,
4. Whereas in an upcoming city like Pune, though
concentrating on service quality.
the satisfaction levels are not so high, the gaps are
minimal, branches in such cities will have to work on 6. Irrespective of the banks, employees who
bigger things which can impress the customers apart interface the customers directly, are ought to
from the personal relationship that they establish. be very empathetic and should be able to
understand the customer needs and
5. Public sector banks, reliability is high whereas, low
requirements. Training the human resource in
on tangibility. Foreign banks reliability is high. Private
this regards would help the banks retain their
banks assurance gap is high. Hence, Private and
customers and also attract more.
Public sector banks have to focus on assurance,
whereas Foreign banks have to work on reliability. 7. Customer relationship is one another aspect the
banks need to be given par importance. Managing
6. Professionalism not only speaks about the way of
customer relation efficiently is an advantage that the
doing things, but also takes into account , the way
banks should concentrate to win the situation.
you present yourself as a part of the organization. To
maintain a standard, it is very essential that the bank 8. The banks should focus on pooling and
follows a dress code with its employees. retention of customers. Large database would
create a trust and reliability culture which would
9.5 Conclusion
bring in more and more customers.
Banking sector today has a compelling demand for
9. Addressing to the individual customer needs is
improvement, to survive the substantial competition
one crucial aspect to be considered, as the
in todays scenario.
customer would find himself as a part of the
364 CH. 9 : FINDINGS, SUGGESTIONS AND CONCLUSION
organization. This would build a good relationship 11. Efficient and knowledgeable employees are
between the bank and the customer. always a big boon for any organization.
10. Publicizing the bank in the right area adds Employees should be trained on technical and
value to the brand. Foreign banks utilize the behavioral aspects, so that banks can deliver
proper media resource for promoting their quick and prompt services.
services. Its very important that both the public 12. Establishing branches in every possible area
and the private sector banks come forward and would be a better way to progress. This would
use the same to a greater extent. really help banks to create more accounts and
give more reach to the banks.
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