A Study of Service Quality and Customer Satisfaction in Public and Private Sector Banks

Abstract

would require a competitive, dynamic, profitable, efficient, and effective banking system that would newlinestimulate, support, and promote economic growth and sustainable development. Thus, the reform process newlinein India as a whole has strengthened the financial health, competitive space, and soundness of the banking newlinesector in a significant way. Before 1990, the banking system had been restricted from private participation newlinein India and public sector banks had been enjoying complete freedom in the economy. But since 1991, the newlineprocess of liberalization and globalization of the Indian economy has brought tremendous changes in the newlinelevel of competition, advancement of technology, business environment and strategies to meet the newlinegrowing demand for varied and best quality of banking services. The emergence of a new generation of newlineprivate sector banks after 1991 boosted competition among the Indian banks. The degree of competition newlineled to the concept of cost consciousness, credit management and effective utilization of all resources, newlineprofitability, overall efficiency for the survival and growth of the banking business. The period of newlinedigitization and progress towards the acceptance of new technology have distorted the way banks do newlinebusiness today. Information technology has played a vital role in shaping India s banking scenario. Nowa- newlinedays, banks have the responsibility of being ahead in technology, making themselves available to newlinecustomers anytime and anywhere and staying at the forefront of any competition. All these factors serve newlineas the basis for emerging trends in the banking industry. newlineAs we know, today, customers are said to be king of the market and moreover, customers are smart, aware newlineand vocal too. They demand value for their money and expect more and more from their service provider. newlineThus, to face tough competition and to survive in the market, banks have to provide the best service to newlinetheir customers and satisfy them in a complete and effective way. newline