A STUDY ON SERVICE QUALITY IN BANKING SECTOR

Submitted By

NAME REGISTER NUMBER

ABISHEK.N 20MBA1003

JUSTIN K SAM 20MBA1006

VARUN.V.V 20MBA1011

NISHOK.T.N 20MBA1021

NAMRYTHA.S 20MBA1033

AKSAYA.A 20MBA1044

SYLVIA RACHEL.S 20MBA1057

GEDDAM JOSHUA 20MBA1066

Under the Guidance of

Dr. R. Venkatesh
Professor

VELLORE INSTITUTE OF TECHNOLOGY

VIT BUSINESS SCHOOL (VIT BS)
Chennai Campus
Trisemester V
2022
ACKNOWLEDGEMENT
We acknowledge the abundant blessings and grace of God Almighty who has always

been our source of energy and knowledge.

We express our deepest sense of gratitude to our guide Dr. R. Venkatesh,

Professor – Higher Academic Grade, VITBS for his valuable guidance, suggestions and

supervision throughout the work. We would also like to express our gratitude and sincere

regards for his kind approval of the project, time to time counselling and advices.

Finally, we record our sincere thanks to our parents and friends for their encouragement

during the work.

With deepest sense of gratitude, we thank all those who generously contributed to the

success of our project.

-The Group
TABLE OF CONTENT:

PAGE
CHAPTER TITLE
NO

1 INTRODUCTION 1-2

1.1 Introduction 1
1.2 Objective 1
1.3 Need for the study 1
2 REVIEW OF LITERATURE 2-6

2.1 Review of literature 2

3 RESEARCH METHODOLOGY 7-9

Research Gap
3.1 8

3.2 Objective of the study 8

3.3 Research Methodology 9

4 ANALYSIS AND INTERPRETATION 10-25

4.1 Frequency Analysis 11

4.2 One Way Anova 20

4.3 Model 23

4.4 Regression Analysis 23

5 FINDINGS, SUGGESTIONS AND CONCLUSION 26 - 28

5.1 Findings 27

5.2 Suggestions 28

5.3 Conclusion 28

6 REFERENCE 29

7 ANNEXURE 31
 ABSTRACT:

Since the late 1970s, the topic of service quality has been a focus of academic and business interest. Of
course, quality has always been a priority for buyers, but increased competition in today's markets for
many services has prompted consumers to be pickier in their service selection. In this current era of global
competition, elements like customer expectation and customer happiness are critical to any industry's
performance, and the Indian banking industry is no exception. Customers have an important role.
Customers play an important role in the current Indian banking sector. Banks have an obligation to satisfy
their clients in order to keep them, which is critical to their survival and profitability. Customer
expectations, satisfaction, and service excellence are all intertwined. Banks should be able to reduce and
eliminate the gap between consumers' perceptions of service quality and the actual service given. In
addition, the study aimed to determine the dimensions of bank service quality. In fact, the study provides
a framework for bankers to offer quality service.

KEYWORDS: Quality, Customer Satisfaction, Banking System, Banking Services, Profitability.

 CHAPTER – 1
INTRODUCTION

1
 CHAPTER - 1

1. INTRODUCTION:

The banking industry is considered as the backbone of any economy. Banks, their goods, and their
operations are critical cornerstones of any economy. The remark is also true in the Indian context, as the
Indian banking industry has the potential to become the world's fifth largest banking industry by 2020.
Only via the systematic operations of commercial banks in the economy can developing economies
expand by deploying and distributing their limited financial assets. The banking sector's process is
intriguing, and it generates significant credit for the economy. Finally, they contribute to the nation's
economic progress in a variety of ways. Because India has a big population and land area, the Indian
banking industry differs significantly from that of other Asian countries.

Customers' perceptions toward banking services have shifted as a result of the Liberalization,
Privatization, and Globalization (LPG) movement, which has exposed the service industry to competition,
service quality, pricing, and a competitive climate. The quality of service will be the most critical aspect
in determining whether or not a service provider survives in the Indian banking market. Customers around
the world obtain homogeneous and identical goods and services from banking service providers.
Customers are most likely to use bank products and services if they receive high-quality service. All banks
in India follow a decent structure in order to maintain high levels of service quality and create delighted
consumers. Customer retention and satisfaction would increase as a result.

1.1 OBJECTIVE:

1. To assess the perceived quality of service in commercial banks.

2. To determine the aspects of bank service quality.

3. Make recommendations for improving bank service quality.

1.2 NEED FOR THE STUDY:

a) The most important factor of a bank's operation is the level of service quality provided to consumers.
To better meet environmental criteria, organisations are always focusing on a critical component such as
service quality, which serves as a major competitive advantage.

b) The study's goal is to obtain a better knowledge of bank customers' behaviour in terms of service quality
and to provide useful information for improving service quality.

C) To evaluate the services provided by different banks (private, public, and international banks) and to
see how service quality affects a bank's reputation.

2
 CHAPTER – 2
REVIEW OF LITERATURE

3
 CHAPTER - 2

2.1 REVIEW OF LITERATURE:

According to research, service quality is widely recognised as a critical aspect in the success of any
organisation (Parasuraman et al., 1988), and the banking industry is no different. The banking sector's
performance is frequently judged on the quality of its services (Cowling and Newman, 1995). Customers
will be loyal to a bank if they obtain more value from it than from competitors' services (Dawes and
Swailes, 1999), and banks can make a lot of money if they can position themselves better than their
competitors (Davies et al., 1995). As a result, banks place a premium on service quality, using it as a
competitive advantage (Kotler, 2000).

Customer Relation:

In the Indian banking sector, Dhandabani (2010) investigated the relationship between customer loyalty
and service quality. The author employed factor analysis to determine the relative relevance of numerous
aspects such as Reliability, Responsiveness, Knowledge, and Recovery, as well as Tangibles. Customer
satisfaction and loyalty are intertwined, according to the study, and one leads to the other. On the one
hand, the study highlighted the indirect effect of service quality on customer loyalty, while on the other
hand, the structural equation model employed by the researcher disproved the association between service
quality and customer loyalty.

Quality of service:

M.B. Lohani and P. Bhatia (2011) investigated the level of service quality provided by commercial and
public sector banks in India. The goal of the study was to determine the disparities in customer satisfaction
levels among banks across the country. It also attempted to assess the difference between customers' views
and expectations of various commercial and public sector banks in order to determine the level of customer
satisfaction.

Lohani M.B. (2012) investigated the degree of service quality in selected banks using the SERVQUAL
modal and discovered that there is a small perceived variation in service quality. According to the findings,
banks place the greatest emphasis on the tangibility factor in order to attract more clients.

Customers' expectations of bank service quality, particularly in India's private sector banks, were
investigated by Jain Vibhor, Gupta S, and Jain S. The goal of the project is to learn what consumers think
about the service quality offered and to focus on the differences in service quality supplied in the banking
industry. It was discovered that, because public sector banks have been around for a long time, they have
a higher level of consumer trust than private sector banks. In light of the ever-increasing competition,
banks must reevaluate their services in order to improve consumer satisfaction.

4
In the banking sector, Abdel Fattah Mahmoud Al-Azzam (2015) investigated the relationship between
service quality and customer happiness. According to the findings, there is a strong link between
tangibility and customer happiness among all of the parameters considered. The relationship between
physical facilities and consumer happiness explains itself. The study's conclusion was that the quality of
service has a major impact on customer satisfaction.

J. Joshua Selvakumar. (2015): Consumer views and preferences are more likely to differ across service
industries, according to prior studies. As a result, the impact of service quality determinants on customer
satisfaction in Indian public and private banks is investigated in this article. Recognizing the gap between
perceived and actual service quality can considerably improve customer satisfaction.

According to the findings, Assurance, Tangibility, Empathy, Reliability, and Responsiveness have a
substantial impact on customer satisfaction with banking services in the city. It was discovered that
Assurance has the greatest impact on consumer satisfaction with the city's banking services, while
responsiveness has the least significant impact on customer satisfaction with the city's banks. Customers'
expectations in terms of giving priority to customers' suggestions and views, secured transactions,
appropriate knowledge base management, correct record maintenance, seeing customers on a regular
basis, and so on, clearly surpass the assurance offered by the banks in the city.

S.Fathima & M. Edwin. (2011): Service quality is particularly crucial in service businesses. The majority
of an organization's growth and development is determined by the quality of its services. Because service
quality is the only method to satisfy the majority of clients, businesses are focusing more on it today.
Quality is linked to the customer's other behavioural results. In the banking industry, the study examines
consumer perceptions of service quality elements such as guarantees, 4 Empathy, Responsiveness,
Reliability, and Tangibility. Based on demographic disparities, it also examines the impact of these service
quality determinants on satisfaction levels.

The study uses a purposive sample strategy to obtain perceptions about several service quality
characteristics and analyses the impact of those aspects. The data was gathered based on several
demographics such as urban, rural, educational standards, income level, occupation, and so on.... Finally,
the study finds that there is a close relationship between the service quality element and the level of
customer happiness. It was also shown that the impact of service quality parameters on customer
satisfaction varied depending on the client demographic.

Jayaram muthusamy, shankar chelliah.(2010): The study looks at how to determine customer loyalty
in the banking industry by providing high-quality service. It also identifies banking sector characteristics
that can be changed to improve service quality. A snapshot of some relevant methodologies for assessing
customer satisfaction that have been employed is also presented. Assurance has a favourable link with

5
customer satisfaction, according to the research, although it has no statistically significant impact.
Reliability, which is defined as the timeliness and quality of the service provided, has no bearing on
customer happiness. There is no link between empathy and satisfaction, according to the data. The term
"responsiveness" refers to the service provider's ability to respond to a customer's request in a timely
manner. According to the findings, the responsiveness element is strongly linked to customer happiness.

6
 CHAPTER – 3
RESEARCH METHODOLOGY

7
 CHAPTER 3

3 RESEARCH GAP

From the review of literature it is found that the study on service quality of banking sector has
been done before Covid19. My Research on service quality of banking sector has been done
after covid19 in Tamil Nadu and Measurement of service quality in Private, Publicand Foreign
sector bank after covid19.

3.1 OBJECTIVES OF THE STUDY

1. To analyze the Performance of Public, Private and Foreign Bank on service quality.
2. To identify the determining factor of service quality.
3.2 RESEARCH METHODOLOGY:

a) Data Collection and Empirical Context

The descriptive research was carried out to assess the service quality of private ,

public and foreign sector bank. Therefore, researchers started by searching former knowledge

of the area. These past knowledge are used to recognize different dependent and independent

variables.

b) Study Area

The study is confined to Tamil Nadu.

c) Population

Population refers to specific group of the units such as individuals, households,

Organization and similar that are targeted for definite study. For this study, 100 customers of

public, private and foreign bank sector.

d) Sampling Frame

After defining the population, the next step is to identify the sample frame. Sampling

frame is the process of listing the elements so as to draw actual sample. For this study, list of

all branches of private, public and foreign sector bank was obtained.

e) Sampling Procedure

8
Random sampling method was used for data collection. Under this convenience

sampling procedure is appropriate for this research.

f) Sampling Size

Several factors such as money, time, statistical methods, population size and so on

depends upon the question of sample size. For this research, as per the research convenience,

100 sample were taken.

g) Nature of Instruments

Structural questionnaires were developed. The questionnaire consists of two parts.

First part consists of demographic factor. Second part consists of service quality dimensions.

h) Measurement of Variables

After completing the data collection. By using SPSS software data were entered

accordingly. For this research, Likert scale was used for rating responses. Each testimonial is

measured by 5- point Likert scale: 1= Strongly disagree; 2=Disagree; 3=Neutral; 4= Agree;

5=Strongly agree.

i) Statistical Methods

In this research One way Anova and linear regression, analysis was done with the

help of SPSS software in order to analyze the relationship between several variables that

influence service quality.

j) Period of Data

The data is collected from 20/12/2021 – 02/01/2022 (2 weeks).

9
 CHAPTER – 4
ANALYSIS AND INTERPRETATION

10
 CHAPTER 4

4.1 FREQUENCY ANALYSIS

FREQUENCY ANALYSIS OF AGE GROUP

Ag
e

Frequency Percent Valid Percent Cumulative

Percent
Valid Below 20 4 4.0 4.0 4.0
21-40 74 74.0 74.0 78.0
41-60 14 14.0 14.0 92.0
Above 60 8 8.0 8.0 100.0
Total 100 100.0 100.0

INTERPRETATION
From the above Table, It is clear that majority of the respondents are from 21-40(74%) years
of age followed by 41-60 (14%), above 60 (8%) and Below 20 (4%).

11
 FREQUENCY ANALYSIS OF GENDER

Gende
r

Frequency Percent Valid Percent Cumulative

Percent
Valid Male 63 63.0 63.0 63.0
Female 37 37.0 37.0 100.0
Total 100 100.0 100.0

INTERPRETATION
From the above Table, It is clear that majority of the respondents are Male (63%)followed
by Female (37%).

12
 FREQUENCY ANALYSIS OF AREA

Are
a
Frequency Percent Valid Percent Cumulative
Percent
Valid Urban 72 72.0 72.0 72.0
Sub-Urban 14 14.0 14.0 86.0
Rural 14 14.0 14.0 100.0
Total 100 100.0 100.0

INTERPRETATION
From the above Table, It is clear that majority of the respondents are from Urban(72%)
followed by Sub-Urban (14%) and Rural (14%).

13
 FREQUENCY ANALYSIS OF OCCUPATION

Occupati
on

Cumulative
Frequency Percent Valid Percent
Percent
Valid Private Employee 29 29.0 29.0 29.0
Public Employee 1 1.0 1.0 30.0
Business 7 7.0 7.0 37.0
Student 55 55.0 55.0 92.0
Retired 4 4.0 4.0 96.0
Housemakers 4 4.0 4.0 100.0
Total 100 100.0 100.0

INTERPRETATION
From the above Table, It is clear that majority of the respondents are Students (55%)followed
by Private Employee (29%), Business (7%), Retired (4%), Housemaker (4%) and Public
Employee (1%).

14
 FREQUENCY ANALYSIS OF ANNUAL INCOME

Annual
Income
Frequency Percent Valid Percent Cumulative
Percent
Valid Less than 2.5 Lakhs 58 58.0 58.0 58.0
2.5-5 Lakhs 12 12.0 12.0 70.0
5-7.5 Lakhs 11 11.0 11.0 81.0
7.5-10 Lakhs 4 4.0 4.0 85.0
Above 10 Lakhs 15 15.0 15.0 100.0
Total 100 100.0 100.0

INTERPRETATION
From the above Table, It is clear that majority of the respondents have annual incomeof Less
than 2.5 Lakhs (58%) followed by Above 10 Lakhs (15%), 2.5-5 Lakhs (12%), 5-7.5 Lakhs
(11%) & 7.5-10 Lakhs (4%).

15
 FREQUENCY ANALYSIS OF EDUCATION QUALIFICATION

Education
Qualification
Frequenc Percent Valid Cumulative
y Percent Percent
Valid HSC 7 7.0 7.0 7.0
UG 30 30.0 30.0 37.0
PG 41 41.0 41.0 78.0
Diploma,M.PhilL,PHD 4 4.0 4.0 82.0
Professional
18 18.0 18.0 100.0
Course/Degree
Total 100 100.0 100.0

INTERPRETATION
From the above Table, It is clear that majority of the respondents are having PG Degree (41%)
followed by UG (30%), Professional Course/Degree (18%), HSC, Diploma, M.Phil., PHD (4%).

16
 FREQUENCY ANALYSIS OF TYPE OF BANKS

Type of
Bank
Frequency Percent Valid Percent Cumulative
Percent
Valid Public sector 52 52.0 52.0 52.0
Private Sector 39 39.0 39.0 91.0
Foreign 9 9.0 9.0 100.0
Total 100 100.0 100.0

INTERPRETATION
From the above Table, It is clear that majority of the respondents are using PublicSector bank
(52%) followed by private bank (39%) and Foreign bank (9%).

17
 FREQUENCY ANALYSIS OF TYPE OF ACCOUNTS

Type of
Account
Frequency Percent Valid Percent Cumulative
Percent
Valid Saving Account 85 85.0 85.0 85.0
Deposit Account 7 7.0 7.0 92.0
Current Account 6 6.0 6.0 98.0
Loan Account 2 2.0 2.0 100.0
Total 100 100.0 100.0

INTERPRETATION
From the above Table, It is clear that majority of the respondents are using SavingAccount
(85%), Deposit Account (7%) , Current Account (6%) and Loan account (2%).

18
 FREQUENCY ANALYSIS OF DURATION OF ACCOUNTS

Duration of
Account
Frequency Percent Valid Percent Cumulative
Percent
Valid 0-3 Years 28 28.0 28.0 28.0
4-7 Years 32 32.0 32.0 60.0
8-10 Years 13 13.0 13.0 73.0
More than 10 Years. 27 27.0 27.0 100.0
Total 100 100.0 100.0

INTERPRETATION
From the above Table, It is clear that majority of the respondents are having theaccount
for4-7 Years (32%) followed by 0-3 Years (28%), More than 10 Years (27%), 8-10 Years (13%).

19
 OBJECTIVE 1: To analyse the Performance of Public, Private and Foreign
Bank onservice quality.

4.2 ONE WAY ANOVA

ONE WAY ANOVA FOR PRIVATE, PUBLIC FOREIGN BANK AND LEVEL OF
SERVICE QUALITY
NULL HYPOTHESIS (H0)
There is no significant difference between services quality dimension of public,private and
Foreign Sector Banks.
ALTERNATE HYPOTHESIS (H1)
There is a significant difference between services quality dimension of public,private and
Foreign Sector Banks.

Descriptives
95% Confidence
Interval for
Std. Mean Maximu m
Std.
Erro Lowe Uppe
N Mean Deviatio Minimu
r r r
n m
Boun Boun
d d
Empathy Public
sector
52 3.4423 .69996 .09707 3.2474 3.6372 1.00 4.60

Private
Sector 39 3.5179 .73516 .11772 3.2796 3.7563 2.00 5.00

Foreign 9 4.2667 .82462 .27487 3.6328 4.9005 2.20 5.00

Total 100 3.5460 .75363 .07536 3.3965 3.6955 1.00 5.00
Responsivene Public
sector 52 3.4077 .78412 .10874 3.1894 3.6260 1.00 5.00
ss
Private
Sector 39 3.6154 .71139 .11391 3.3848 3.8460 2.00 5.00

Foreign 9 4.3333 .86603 .28868 3.6676 4.9990 2.20 5.00

Total 100 3.5720 .79950 .07995 3.4134 3.7306 1.00 5.00
Assurance Public
sector 52 3.7692 .80264 .11131 3.5458 3.9927 1.00 5.00

Private
Sector 39 3.7179 .82951 .13283 3.4491 3.9868 1.00 5.00

20
 Foreign 9 4.1389 .85797 .28599 3.4794 4.7984 2.00 5.00
Total 100 3.7825 .81778 .08178 3.6202 3.9448 1.00 5.00
Tangibility Publi
c
secto 52 3.5385 .78338 .10864 3.3204 3.7566 1.00 5.00
r
Privat
e
Secto 39 3.5769 .83144 .13314 3.3074 3.8464 1.75 5.00
r
Foreign 9 4.2222 .97183 .32394 3.4752 4.9692 2.00 5.00
Total 100 3.6150 .83365 .08337 3.4496 3.7804 1.00 5.00

ANO
VA
Sum of Df Mean Square F Sig
Squares .
Empathy Between Groups 5.264 2 2.632 5.010 .009
Within Groups 50.964 97 .525
Total 56.228 99
Responsiveness Between Groups 6.694 2 3.347 5.737 .004
Within Groups 56.588 97 .583
Total 63.282 99
Assurance Between Groups 1.315 2 .657 .983 .378
Within Groups 64.892 97 .669
Total 66.207 99
Tangibility Between Groups 3.680 2 1.840 2.740 .070
Within Groups 65.123 97 .671
Total 68.802 99

INTERPRETATION

A. In Empathy Dimension, the significance value in Anova Table i.e.0.09 is greater than

21
 0.05. So, Accept the Null Hypothesis .There is no significant difference between
Empathy Dimension of service quality in Private, Public and Foreign sector banks.
B. In Responsiveness Dimension, the significance value in Anova table i.e. 0.004 is less
than 0.05. So, Reject the Null Hypothesis and Accept the Alternate Hypothesis. There
is a significant difference between Responsiveness Dimension of service quality in
Private, Public and Foreign Bank.

Responsiveness Public sector 52 3.4077

Private Sector 39 3.6154
Foreign 9 4.3333

As per Descriptive statistics and bar chart, the mean the value of foreign sector bankis 4.3333
i.e. the responsiveness in foreign sector bank is higher when compare to other sector bank.

A. In Assurance Dimension, the significance value in Anova Table i.e.0.378 is greater

than 0.05. So, Accept the Null Hypothesis .There is no significant difference Assurance
between Dimension of service quality in Private, Public and Foreign sector banks.
B. In Tangibility Dimension, the significance value in Anova Table i.e.0.070 is greater

22
 than 0.05. So, Accept the Null Hypothesis .There is no significant difference Tangibility
between Dimension of service quality in Private, Public and Foreign sector banks.

4.3 MODEL

EMPATHY

RESPONSES

SERVICE QUALITY

ASSURANCE

TANGIBILITY

OBJECTIVE 2: To identify the determining factor of service quality.

4.4 LINEAR REGRESSION ANALYSIS OF SERVICE QUALITY

Model Summary

Model R R Square Adjusted R Square Std. Error of the

Estimate
1 .747a .558 .539 .48493
a. Predictors: (Constant), Tangibility, Empathy, Assurance, Responsivenes

INTERPRETATION OF MODEL SUMMARY TABLE

The R Square indicates the how much variation in service quality can be explained by the
Tangibility, Empathy, Assurance, and Responsiveness. In this case 55.8% change in service
quality is explained by Tangibility, Empathy, Assurance, and Responsiveness.

23
 ANOV
Ab
Model Sum of D Mean Square F Sig
Squares f .
1 Regression 29.94 .000
28.167 4 7.042 a
5
Residual 22.340 95 .235
Total 50.507 99
a. Predictors: (Constant), Tangibility, Empathy, Assurance, Responsiveness
b. Dependent Variable: Service Quality

INTERPRETATION OF ANOVA TABLE

The constructed model is fit. The fitness of the framework which I have developed is Supportive
because the sig value .000 which is less than 0.05. So, the model is fit. The independent variable
Tangibility, Empathy, Assurance, and Responsiveness are significant predictor of Service
Quality.

Coefficient
sa
Standardiz
ed
Unstandardized
Coefficients Coefficien
Model ts T Sig
.
B Std. Error Bet
a
1 (Constant) .983 .261 3.761 .000
Empathy .243 .099 .257 2.460 .016
Responsiveness .393 .100 .440 3.923 .000
Assurance .001 .096 .002 .014 .989
Tangibility .114 .088 .133 1.292 .200
a. Dependent Variable: Service Quality

INTERPRETATION OF COEFFICIENTS TABLE

A. Empathy will impact the service quality. In other words one unit increase in Empathy
will increase 0.243 units in service quality. Empathy show significant relationship
(P<0.05) with service quality.

24
 B. Responsiveness will impact the service quality. In other words one unit increase in
Responsiveness will increase 0.393 units in service quality. Responsiveness show
significant relationship (P<0.05) with service quality.
C. Assurance and Tangibility will not have any on impact the service quality. As the
significance value is more than 0.05(p>0.05). The Assurance and Tangibility have no
significant relationship with service quality.

RANK ORDERING THE IMPORATNT DETERMINANT OF SERVICE QUALITY

1. Responsiveness has the Standardized Coefficients beta has the highest value 0.440 &
(p<0.05).
2. Empathy has the Standardized Coefficients beta has the second highest value 0.257 &
(p<0.05).

25
 CHAPTER – 5
FINDINGS, SUGGESTIONS AND CONCLUSION

26
 CHAPTER – 5

5.1 FINDINGS
• The majority of the respondents are from 21-40 (74%) years of age followed by 41-60 (14%),

above 60 (8%) and Below 20 (4%).

• The majority of the respondents are Male (63%) followed by Female (37%).
• The majority of the respondents are from Urban (72%) followed by Sub-Urban (14%)

and Rural (14%).

• The majority of the respondents are Students (55%) followed by Private Employee (29%),

Business (7%), Retired (4%), Housemaker (4%) and Public Employee (1%).

• The majority of the respondents have annual income of Less than 2.5 Lakhs (58%)

followed by Above 10 Lakhs (15%), 2.5-5 Lakhs (12%), 5-7.5 Lakhs (11%) & 7.5-10 Lakhs (4%).

• The majority of the respondents are having PG Degree (41%) followed by UG (30%),

Professional Course/Degree (18%), HSC, Diploma, M.Phil., PHD (4%).

• The majority of the respondents are using Public Sector bank (52%) followed by

private bank (39%) and foreign bank (9%).

• The majority of the respondents are using Saving Account (85%), Deposit Account (7%)

, Current Account (6%) and Loan account (2%).

• The majority of the respondents are having the account for4-7 Years (32%) followed by 0-3

Years (28%), More than 10 Years (27%), 8-10 Years (13%).

• There is no significant difference between Empathy Dimension of service quality in Private,

Public and Foreign sector banks.

• There is a significant difference between Responsiveness Dimension of service quality in

Private, Public and Foreign Bank.

• There is no significant difference Assurance between Dimension of service quality in

Private, Public and Foreign sector banks.

27
 • There is no significant difference Tangibility between Dimension of service quality in Private,

Public and Foreign sector banks.

• Responsiveness and Empathy are the important factor of determining the Service Quality.

5.2 SUGGESTIONS

• Customers' expectations are rising, especially among those who are part of the next generation.
As a result, banks should reconsider their conventional practises and adapt to meet the needs of
young customers.
• Since the responsiveness of private and public sector banks is limited, In comparison to
foreign banks, both private and public banks should place a greater emphasis on it.
• The important factor that defines the Service Quality is responsiveness and empathy.
• As a result, all banks should place a greater emphasis on it in order to increase service quality.
• Professionalism encompasses not just the way you do things, but also the way you
present yourself as a member of the organisation. It is important that the bank adhere to the dress
code in order to uphold standards.
• Employees of public banks that interact directly with customers should be open
and able to consider their needs and requirements.
• It is important to innovate services in response to consumer needs and demands.
• The customer must be at the core of the plan.

5.3 CONCLUSION

The concept of service quality is undoubtedly important in today's banking business. The quality of service
is the most essential aspect when people examine a bank's norm. The most essential variables in
determining Service Quality were found to be Tangibility, Empathy, Assurance, and Responsiveness.
Responsiveness and empathy are two of these factors that have a significant impact on service quality.
Customer bonding is facilitated by banks with highly empathic and attentive workers. The findings reveal
that a bank's reputation has a significant impact on client satisfaction. It is strongly suggested that the two
qualities mentioned above (responsiveness and empathy) are the most important factors in determining
Service Quality. As a result, banks should take these considerations into account. The model of this study
provides a framework for banks in order to prescribing the pathway of offering quality service.

28
REFERENCE

29
6. REFERENCES

1. Sankar. U, Mishra, Kumar.k, Sahoo, Mishra.s, Patra.k,S. (2010):Service Quality Assessment

in Banking Industry of India: A Comparative Study between Public and Private Sectors.
European Journal of Social Sciences, Volume.16, 4.

2. Baghla.A, Garai .A.(2016):Service quality in the retail banking sector - A study of selected
public and new Indian private sector banks in India. International Journal of Applied
Research, Vol. 2, ISSUE 6.

3. Selvakumar,J.J.(2015):Impact of service quality on customer satisfaction in public sector and

private sector banks. PURUSHARTHA, Vol .8 ,1 .

4. Fathima.S, Edwin,M (2011): Impact of service quality in commercial bank on the customer
satisfactions.International journal of multidisciplinary research,vol.1,19-37.

5. Munusamy.J , Chelliah.S. (2010):Service quality and its impact on customer satisafction in

banking sector.International journal of innovation, Management and Technology.Vol.1,398-
404.

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ANNEXURE

31
 7.ANNEXURE

A STUDY ON SERVICE QUALITY IN BANKING SECTOR

QUESTIONNAIRE
PERSONAL DETAILS
1. Name
2. Age
a) Below 20
b) 21-40
c) 41-60
d) Above 60
3. Gender
a) Male
b) Female
4. Area
a) Urban
b) Sub-Urban
c) Rural
5. Occupation
a) Private Employee
b) Public Employee
c) Business
d) student
e) Retired
f) Housemakers.
6. Annual Income
a) Less than 2.5 Lakhs
b) 2.5-5 Lakhs
c) 5-7.5 Lakhs
d) 7.5-10 Lakhs
e) Above 10 Lakhs
7. Education Qualification
a) HSC
b) UG
c) PG
d) Diploma, M.PhilL, PHD
e) Professional Course/Degree
CUSTOMER PERCEPTION
8. Type of Bank

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 a) Public sector
b) Private Sector
c) Foreign
9. Type of Account
a) Saving Account
b) Deposit Account
c) Current Account
d) Loan Account
10. Duration of Account
a) 0-3 Years
b) 4-7 Years
c) 8-10 Years
d) More than 10 Years.
11.Service Reliability

Strongly Disagree Neutral Agree Strongly

Disagree Agree
The bank provides service as
promised
Dependable in solving customer
problem
The bank maintain consistency
of performance
The bank maintain accuracy in
transactions

12.Empathy

Strongly Disagree Neutral Agree Strongly

Disagree Agree
Give individual attention to
customer
Deal customer with
care
Understand the need of
customer

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 Having problem solving
attitude
Have branches in convenient
Location

13. Responsiveness

Strongly Disagree Neutral Agree Strongly

Disagree Agree
Provides prompt and
quick
service
Willing to help
customer
Ready to response
quickly
Always keep customer
informed
Reduced waiting time
in queue

14. Assurance

Strongly Disagree Neutral Agree Strongly

Disagree Agree
Safety in Transaction

Employees give confidence

to customer
Employees are
knowledgeable and efficient
Keep confidentiality of
clients information

15. Tangibility

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 Strongly Disagree Neutral Agree Strongly
Disagree Agree
Modern equipment
are used
Employees have
professional
appearance
Visually appealing
decoration
Employees are
well dressed

16.Satisfaction

Strongly Disagree Neutral Agree Strongly

Disagree Agree
I am satisfied with
office decoration
I am satisfied with the
employees cooperation
I am satisfied with the
performance of this
bank
I have no complain
against this bank

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17.Loyalty

Strongly Disagree Neutral Agree Strongly

Disagree Agree
I will continuously
use this bank
I will introduce this
bank to
Others
This bank’s services
are of high
standard
I am happy with the
services of
this bank
I will influence
others to use
this bank

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