PROJECT REPORT ON

“A STUDY ON CUSTOMER SATISFACTION

ON THE SERVICES OF PRIVATE SECTOR
AND PUBLIC SECTOR BANKS”

SUBMITTED BY
ARYA GUPTA
ROLL NO. A021

IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS OF
B.COM. (BANKING & INSURANCE)
SEMESTER V

PROJECT GUIDE
MRS. ARCHANA
MAINKAR

UNIVERSITY OF MUMBAI
2022-23
1
 CERTIFICATE

This is to certify that Ms. Arya Gupta, student of TY-B.Com.

(Banking & Insurance) Semester V of SVKM’s Mithibai College of
Arts, Chauhan Institute of Science & Amrutben Jivanlal College of
Commerce and Economics (Autonomous) has successfully completed
the project on “A STUDY ON CUSTOMER SATISFACTION ON
THE SERVICES OF PRIVATE SECTOR AND PUBLIC
SECTOR BANKS” under the guidance of MRS. ARCHANA
MAINKAR for the academic year 2022-2023.

INTERNAL EXAMINER EXTERNAL

EXAMINER
Mrs. Archana Mainkar

HEAD OF DEPARTMENT I/C PRINCIPAL

Dr. Jaison Baby Thomas Dr. Krutika Desai

2
 DECLARATION

I hereby declare that I have successfully completed the project on

“A Study On Customer Satisfaction On The Services Of Private
Sector And Public Sector Banks” for the academic year 2022-2023.The
project is done underthe guidance of Mrs. Archana Mainkar and this
project work is submitted In the partial fulfillment of their requirement
for the award of the degree of Bachelor of Commerce (Banking &
Insurance).

This information provided in the project is true and to the best of my

knowledge.

Name: Arya Gupta

Roll No.: A021

T.Y.B.B.I (2022-2023)

3
 ACKNOWLEDGEMENT

I feel great pleasure in expressing my regards and profound sense of

gratitude to the people who have extended their help in every possible
way so that I can complete this project. Help is a voluntary fulfillment
of duty, which all the people mentioned below have performed it to
their maximum, in a way giving me and my research the utmost
important.

I take this opportunity to thank the University of Mumbai for giving

mechance to do this project.

I am highly indebted to my faculty guide Mrs. Archana Mainkar for

her guidance and constant supervision as well as for providing
necessary information regarding the project and also for his support
in completing the project. He has taken pain to go through the project
and make necessary correction as and when needed.

At the onset, I wish to express my gratitude to Dr. Krutika Desai,I/c

Principal, Dr. Anjali Patkar Vice Principal and, Dr. Jaison Baby
Thomas, Head of Department, for their support.

I would also like to thank my college for providing me with all

necessary amenities like well-equipped computer lab and library
which was very helpful as well as non-teaching staff members for
their support without whom this project would have been a distant
reality. I also extended my heartfelt thanks to my family, peers and
well -wishers.
ABSTRACT

Money is a crucial criterion in modern life that determines one's survival from the moment of
birth till the last breath. The majority of the time, it is now impossible to survive on this planet.
This demonstrates the significance of money in daily life. For liquidity, profitability, and safety,
some people put aside money from their earnings in banks. Therefore, they use banks in order
to save and safeguard their money. Banks provide these demands by taking deposits from the
general public and repaying the money when it is needed, plus interest. Therefore, it should go
without saying that banks keep the money supply in check and contribute significantly to a
country's economic growth.
One of the nation's most vital and significant sectors is the banking industry. The expansion
of the banking sector is essential to the country's economic success. The current study is an
investigation using the survey methodology.
With the introduction of digital banking at the beginning of the twenty-first century, the world
of banking has taken on a new dimension, giving the sector a mark of universality. Banking
can often be divided into retail and corporate banking. Utility bill payment, consumer loans,
credit card use, checking account maintenance, and other services fall under the umbrella of
retail banking, which is created to fulfil the needs of individual clients and promote savings.
On the other hand, corporate banking tends to the needs of corporate clients, including handling
cash, opening letters of credit, and discounting bills.

Keywords: Public Sector Banks, Private Sector Banks, Services

SR.NO TOPICS

1
INTRODUCTION
❖ Meaning
❖ History of the bank
❖ Customer Satisfaction
❖ Services

2
LITERATURE REVIEW
❖ Need of the study
❖ Objective of the study
❖ Hypothesis of the study
❖ Scope of the study

3
RESEARCH METHODOLOGY
❖ Limitations of the study
❖ Data Analysis

4
CONCLUSION
❖ Finding and Suggestions

5
REFERENCES
INTRODUCTION

1.1 Meaning

One of the key and crucial sectors of the economy is the banking sector. One of the key
prerequisites for the country's economic success is the expansion of the banking industry. The
banking industry is one of the nation's most vital and important sectors. One of the most
important requirements for the nation's economic development is the expansion of the banking
sector. Furthermore, computers and computerization are not new in India. In fact, the first
computer in the country was installed in the early 1960s. Initially, the increase in the number
of computer installations was slow, but by the 1980s, this technology had spread rapidly
throughout all business establishments. The banking industry underwent significant
revolutionary changes in 1968. The government appointed a committee to review the banking
service at the time. Commercial bank deposits are the most popular type of investment.

In addition, India has a long history with computers and computerization. The country's first
computer was really installed in the early 1960s. It took a while for the number of computer
installations to increase, but after the 1980s, this technology quickly expanded throughout all
commercial buildings. The financial sector underwent significant revolutionary transformation
in 1968. A committee was established by the government at the time to review the banking
industry. The most common type of investment is thought to be bank deposits. Due to the RBI's
regulation and the Deposit Insurance Corporation's guarantee, deposits in scheduled banks are
very safe. Due to their extremely high liquidity, bank deposits are very well-liked. In the
present, the RBI has set a fixed interest rate on deposits, dictating only a ceiling rate for various
maturities. As a result, banks from both the public and private sectors are crucial to provide
customers with improved services. A bank is an institution that performs various banking
functions. It is impractical for a single bank to perform all the banking functions
simultaneously. Accordingly, there are originated numbers of specialised banks with an
intention of performing one or additional functions. By way of illustration, Agricultural Bank,
Commercial banks, Central Bank, Industrial Bank, Co-operative Bank etc., are seen in this
practical field.
1.2 History of bank

The history of the Banks in India can be classified into 3 phases:

1. PHASE I – Early phase from 1786 to 1969 of Indian banks

Modern banking began in India in the mid-1980s. The first bank in India was the Bank of
Hindustan, which was founded in 1770 and closed down in 1932, and the second bank was the
General Bank of India, which was founded in 1786 but failed in 1791. State Bank of India is
India's oldest and largest bank that is still in operation (SBI). The bank was founded in mid-
June 1806 as the Bank of Calcutta, and was later renamed the Bank of Bengal in 1809. In 1921,
the three banks founded by the presidency government - Bank of Bengal (1806), Bank of
Bombay (1840), and Bank of Madras (1843) - merged to form the Imperial Bank of India.
Modern banking began in India in the mid-1980s.The first bank in India was the Bank of
Hindustan, which was founded in 1770 and closed down in 1932, and the second bank was the
General Bank of India, which was founded in 1786 but failed in 1791. State Bank of India is
India's oldest and largest bank that is still in operation (SBI). The bank was founded in mid-
June 1806 as the Bank of Calcutta, and was later renamed the Bank of Bengal in 1809. In 1921,
the three banks founded by the presidency government - Bank of Bengal (1806), Bank of
Bombay (1840), and Bank of Madras (1843) - merged to form the Imperial Bank of India. After
independence, the bank was renamed the State Bank of India in 1955.The presidency banks
served as the central banks for many years until the Reserve Bank of India was established on
April 1, 1935, under the Reserve Bank of India Act, 1935.

Some major steps were taken to regulate banking sector:

● The Reserve Bank of India was Nationalized on 1st January 1949

● Banking Regulation Act, 1949 came into existence which entitled
RBI to inspect, regulate and control the banks in India
2. PHASE II – Nationalisation of banks

In 1969, The Indian Government issued the banking companies Ordinance, 1969 and
nationalized 14 biggest commercial banks of India with effect from 19 th July 1969. Bills got
Presidential approval on the bill on 9th August 1969 and major banks which were nationalized
are:

· Allahabad Bank (Indian Bank),

· Bank of Baroda,

· Bank of India,

· Bank of Maharashtra,

· Central Bank of India,

· Canara Bank,

· Dena Bank (Bank of Baroda),

· Indian Bank,

· Indian Overseas Bank,

· Punjab National Bank,

· Syndicate Bank (Canara Bank),

· UCO Bank,

· Union Bank of India,

· United Bank of India (Punjab National Bank).

At that time these banks had reserves of almost 85% of bank deposits in India. The
nationalization was done to fulfil the needs of the economy with respect to the national policy
objectives.
Again, on 16th April 1980, 2nd round of nationalization was commenced, where 6 commercial
banks were nationalized. The banks which were involved in this round are:

· Andhra Bank Limited (Union Bank of India),

· Punjab and Sindh Bank,

· Vijaya Bank (Bank of Baroda),

· Oriental Bank of Commerce (Punjab National Bank),

· Corporation Bank (Union Bank of India),

· New Bank of India (Punjab National Bank).

The main reason stated for nationalization was to get more control over credit delivery by the
government as after this round of nationalization the government of India was controlling
around 91% of banking business of the country.

Government consolidation of New Bank of India and Punjab National Bank in 1993 resulted
in a drop in the number of nationalised banks from 20 to 19, which thereafter experienced 4%
growth.

3. PHASE III – New Phase of Indian Banking System of Indian Financial and Banking
Sector Reforms after 1991

by the end of 1991, the asset hold by the public sector banks were 90%, for private sector banks
it was 3.7% and for foreign sector banks it was 6.3% and after the liberalization policy of
government the shareholding of assets changed to 75% for public sector banks, 18.5% for
private sector banks and 6.9% for foreign sector banks. The RBI had played a significant role
in suggestions about banks restructuring, managerial independence, and tightening the
regulations. The main recommendations of the Narasimham committee which was set up in
1991 under Mr. M. Narasimham, the 13th governor of Reserve Bank of India. This has proved
to be helpful in increasing the efficiency and profitability of Indian banks. There were some
changes that were taken into consideration after the suggestion proposed by Narasimham
Committee bifurcated in 2 reports, Narasimham Committee Report I – 1991 and Narasimham
Committee Report II – 1998. The final changes done due to recommendation are:

· Statutory pre-emptions

· Priority Sector Lending

· Interest Rate Liberalization

· Entry Barriers

· Prudential Norms

· A threefold restructuring measure including recapitalization, debt recovery

and partial privatization

Thus, the banking system has benefited greatly from liberalization as a result of the structural
changes brought about by the liberalization, which have transformed the Indian banking
system. In addition, the banking system has grown stronger as a result of the recommendations
made by various committees. As a result, banking has transitioned from being a class-based
industry to a mass-based industry. If India keeps moving forward with its current plan to
liberalise the banking sector, it should be able to further develop its financial infrastructure,
which would be necessary to sustain further economic growth in the country.
1.3 CLIENT SATISFACTION

Client satisfaction is crucial in the banking industry. Customer happiness is rapidly becoming
a corporate objective as more businesses work to produce high-quality goods and services
(Bitner and Hubbert, 1994, p.78). To win over customers, there is fierce rivalry in the market.
As a result, the world's leading companies cannot compete only on the basis of pricing. They
came to the realisation that achieving customer happiness is the key to succeeding as a business
leader. Since the client is the cornerstone of the business, the company's capacity to stay in
business is essential to gaining customers over rivals. As an illustration, "The retailer Tesco
focused on the consumer and succeeded to expand its market share and profitability by
becoming the market leader in the highly competitive and cost-conscious marketplace" (Cook,
2002, p. 4). Customers nowadays were better educated and knowledgeable. They won't have
their expectations changed. They have numerous options while selecting products and services.
The customer actively compares various products and services in order to receive complete
satisfaction from them. When a customer starts utilising superior services, their expectations
steadily increase. As a result, it is difficult for organisations to maintain a high level of
consumer satisfaction. Due to market competition, the company must constantly improve
consumer happiness.

WHAT SATISFIES A CUSTOMER?

The product's or service's quality or service is what makes a customer happy. Satisfaction is a
starting point to service quality, according to the service quality school, because satisfaction
with individual transactions "decays into an overall attitude toward service quality." The
satisfaction school of thought holds that evaluations of service quality result in an overall
approach toward the service, which they call satisfaction.
There is a clear link between customer satisfaction and customer retention.
Customers' perceptions of service and product quality will determine a product's or service's
market success. Client satisfaction will be significant if the customer journey far exceeds their
expectations, and vice versa.
1.4 SERVICE QUALITY

The study investigates the value of customer service in the banking system empirically. Indeed,
effective customer service is critical to overcoming the fierce competition in the banking
industry. Not only that, but customers will be encouraged to spread the word about the bank's
products. These could be achieved if inefficiencies associated with effective quality of service
delivery are reduced to a minimum level, if not eliminated entirely. The purpose of this research
is to learn about the nature of customer service and the problems that customers face when they
contact the bank to conduct business.
Second, investigate customer needs and desires in order to generate viable options for
implementing better customer service practices and assessing customer attitudes. Furthermore,
this work would help to understand the range of products and whether customers are happy
with the services offered by banks. This research would facilitate the development of a
regulatory regime for banks to attract more customers.
1.5 SERVICES

A) Electronic banking services

All types of banking activities and services conducted electronically are referred to as e-
banking or electronic banking. Individuals, institutions, and businesses can use it to access their
accounts, conduct transactions, and obtain information about various financial products and
services. Through a public or private network, such as the internet.

The Web has made it easier for banks to provide online banking services to their customers.
Customers can now operate their bank accounts, check balances, transfer funds, and provide
standing instructions to banks almost instantly from wherever they want. This can be
accomplished through net banking or internet banking by accessing the bank's net banking
portal.

Available Net Banking Fund Transfer Options

NEFT
RTGS
IMPS

B) Types of E-Banking Services in India

Internet Banking: Internet Banking is another way of electronic banking service that allows
customers to perform a variety of transactions of financial and non-financial over the Web.

Mobile Banking: Mobile Banking is an electronic banking system that allows customers to
conduct financial and non-financial transactions using their mobile phone.

ATM: Automated Teller Machines (ATM) are one of the most common types of e-banking.

Debit Cards: Almost everyone has a debit card. This card is linked to your bank account, and
it allows you to go cashless.

Deposits and withdrawals (Direct): This service is provided by e-banking.

Payment through smart phone systems: In this services the customer can contact their bank
and ask for a bill payment or a transfer of funds from one account to another.

Point-of-Sale Transfer Terminals: In this service customers can pay for their purchases
instantly with a debit/credit card.

Electronic Fund Transfer: With computer networks and other electronic equipment, many
modern banks have computerised their cheque handling process. Paper cheques are being
phased out by these banks. The electronic fund transfer (EFT) system transfers money from
one account to another automatically. This technology allows for faster electronic funds
transfers from one branch to another.
In this system, the sender and receiver of funds may be in different cities and even use different
banks. Transferring money inside the same city is also possible. The system has been in effect
in India since February 7, 1996

C) Branch Banking Service

A branch banking system is a network of branch offices through which a bank offers banking
services. If a bank has ten branches in a city, account holders can choose a nearby branch to
make deposits, withdrawals, and other services.

We can see the following functions in branch banking services

1. Opening an account

2. Deposits for acceptance

3. Lending

4. Transfer of funds

5. Protecting your money

6. Depository Services
D) Card Services

Credit Card
Credit cards are post-paid or pay later cards that draw from a credit line—money made
accessible by the credit card provider (bank)—and provide a grace period for payment. If the
balance is not paid in full before the end of the period, interest is applied. These bills are
collected in the bank, and the payment is made to the bank in full or in instalments by the card
holder. When travelling or making purchases, the cardholder does not need to carry money/cash
with him. Credit cards are widely accepted in metropolises and large cities.

Debit Card
A prepaid or pay now card with some saved value is known as a debit card. Debit cards instantly
debit or deduct money from a savings account or cash withdrawal. When a consumer purchases
something, he enters this number into the store's PIN pad. When the card is swiped through the
electronic terminal, it contacts the acquiring bank system, which validates the PIN and
determines whether the transaction should be accepted or declined by the originating bank. The
customer never overspends since the amount spent is deducted from the customer's account
immediately. So, in order for the debit card to work, there must be sufficient funds in the
account to fund the payment.
2.1 REVIEW OF LITERATURE

A literature review gives an overview and critical assessment of a collection of research on a

study subject or problem. In simple terms studying specific works one after the other, it
examines a collection of literature in order to determine its themes or categories.

Dr. B. Revathy and A.Anitha(2018), According to them Money is a crucial criterion in modern
life that determines one's survival from birth until their final breath. The majority of the time,
it is now impossible to survive in this planet. This demonstrates the significance of money in
daily life. For liquidity, profitability, and safety, some people put aside money from their
earnings in banks. Therefore, they use banks in order to save and safeguard their money. Banks
provide these demands by taking deposits from the general public and repaying the money
when it is needed, plus interest. Therefore, it should go without saying that banks keep the
money supply in check and contribute significantly to a country's economic
growth.Customer service excellence is becoming a significant approach for many banking or
ganisations to set themselves apart from their rivals. Banks must have a clear understanding o
f the needs, expectations, and values of their customers in ordrr to deliver exceptional custom
er service. Based on this understanding, they must create a unified orgaisational mindset, proc
esses, and systems. The businesses who put in the time, effort, and money necessary to attain
excellence in customer service will be the ones that prosper and expand.

Shila Chandana(2016), this research paper aims to examine that the products and services,
public sector banks fall short of private sector banks. Private sector banks use insurance, loans,
current accounts, recurring deposits, and mutual funds more frequently than public sector banks
do. Private sector banks employ technology services including ATMs, debit cards, credit cards,
UPS, FES, and customer assistance services more frequently than the banks in the public sector
do. Customers from both public and private sector banks are pleased with offerings they are
getting, but only those who open savings accounts in private sector banks are extremely
delighted. In order to boost consumer satisfaction, banks should exert additional effort. Both
their goods and technology services should be promoted by public sector banks .
Dr. Manasa Nagabhushanam(2018), this research paper examines that the age group of
consumers with the highest level of satisfaction is those over 65 years old, with a mean score
of 3.83, and the age group with the lowest level of satisfaction is that of customers under 25
years old. Customer satisfaction with regard to service quality was regarded as being greater
by female consumers than by male customers. The ratings provided by clients belonging to
different occupational groups show a significant degree of diversity. The quality of banking
services has received good marks from the business class. The wealthy and business classes
are given extra attention by banks. As a result, the high-income group is satisfied. Employees
who interact directly with customers, regardless of the bank, should be very empathetic and
capable of understanding their needs and requirements. Training human resources in this area
would help banks retain and attract customers.Another aspect that banks must prioritise is
customer relationships. Managing customer relations efficiently is an advantage on which
banks should focus in order to win the situation.

A.irudayaraj(2019), this paper mainly discuss hat According to bankers, among the many age
groups of clients using e-banking services, middle-aged users (26 to 50 years old) utilise it the
most, followed by users younger than that (up to 26 years of age). Women users of these
services are discovered to do so substantially less frequently. According to the bankers’
perspective, the study showed that professionals are the most likely to utilise e-banking
services, followed by the business class, who use them the most. Finally, it is the students and
the service class. According to analysis, the majority of bankers—from both the public and
private sectors—thought that e-banking services had improved the overall performance of
banks in some way. In comparison to private sector banks, public sector banks are less effective
at promoting e-banking products. Due to various partnerships with builders and auto
dealerships, private sector banks are also increasing their market share. A practice SBI has yet
to formalise is that they pay commissions to individual agents who sell the product in addition
to the builder/agency.
The findings also demonstrate that there is a significant difference in how customers view the
banking services and products offered by public and private sector banks. Customers are
dissatisfied with the quality and cost of the services provided by public sector banks.In order
to meet their customers' expectations, public sector banks must therefore step up and improve
in terms of adopting cutting-edge technology and providing a wide range of e-banking products
with top-notch customer service. Additionally, private sector banks must reduce costs and
provide customers advance notice when presenting goods or services.
Deepanjan das(2012-2014) Banks in the public sector The large majority of respondents,
either from public or private sector banks, have savings accounts. People would like a change
in how public-sector bank employees treat their customers. More awareness is required.
Concerning the level of trust in private sector banks and the amount accumulated in this region
of the country. People in this region are more happy and content with public-sector banks.. The
main reasons for their satisfaction are the trust factor and the branch's location. To attract more
customers, private sector banks must increase the number of their branches, particularly in rural
areas.Furthermore, they must raise customer awareness in order to increase trust in them. The
ATM/Debit card facility was the most commonly used, whether in a private or public sector
bank. The majority of respondents do not want to leave their current bank.

Dr. Saikumari. V, Deepti B Vijay K, Saranya H(2021), According to existing information,

60% of customers have been associated with their respective relationship officer/manager for
more than 5 years, so this study was conducted to investigate. Customers place a higher value
on their close connection with the relationship officer/manager than on the bank they represent.
Thus, relationship marketing should be emphasised, and all corporate staff members in the
bank should receive special training. This is because private sector banks have a larger client
base in India than public sector banks. According to the majority of respondents, the public
sector banks lag behind in terms of advanced technology and technically inclined staff.
According to this study, if the branch's facilities are adequate, such as infrastructure,
atmosphere, decor, sitting area, signage, and so on, it helps in getting overall satisfaction
instead of only customer satisfaction.

Safeena, Rehmath (2010) According to this research, she determined the customer's
perspective on internet banking selection. Despite the fact that client acknowledgment is a key
driver determining the rate of progress in the financial sector, this investigation focused on the
effect of apparent helpfulness, saw convenience, purchaser mindfulness on internet banking,
and saw chances of shoppers acknowledging internet banking. According to the findings of this
study, the majority of customers tolerate web-based banking due to a variety of favourable
factors. The examination discovered that usefulness, usability of the framework, mindfulness
about web-based banking, and dangers associated with it are critical scrutinising elements to
recognise web-based banking framework.These variables have a strong and beneficial impact
on clients' acceptance of the web-based banking framework.
Vibhor Jain, Dr Sonia Gupta, Smriti Jain in their study has said Customer Perception on
Service Quality in Banking sector: with special reference to Indian private banks in Moradabad
region, February 2012 conducted this study to comprehend how customers view service quality
in the banking industry and to assess how it influences reputation and customer
retention. A study such as this will assist in developing strategies that will provide a competitive
edge to private sector banks, as well as satisfy their customers. Therefore, banks have been
positioned in the competitive market using service quality. ICICI, HDFC, KOTAK, and
IndusInd Bank were just a few of the private banks used to conduct the study. For measuring
the level of service quality provided by the private actors in the banking
business, the study has used the servqual tool. The primary presumption in service quality is a
multidimensional term, and these dimensions aid in evaluating the quality of the service. The
five dimensions of assurance, reliability, responsiveness, tangibility, and empathy were used
to collect the responses.

Justin Paul Arun Mittal Garima Srivastav in their findings discussed the Knowledge of
products, response to need, answering questions, fast service, quick connection to the right
person, and efforts to reduce queuing time were discovered to be factors that are positively
associated with overall satisfaction in the case of private sector banks. Customer service,
appearance, and follow-up are all negatively associated with customer satisfaction. In the case
of public sector banks, however, knowledge of the product and quick service are positively
associated, the whole appearance is the only factor that is negatively associatedThe dependent
variable in this study is customers' "Overall Satisfaction." In the case of private sector banks,
it was discovered that product knowledge, response to need, question resolution, quick
services, being quickly connected to the right person, and efforts to reduce queuing time all
have a positive impact on "Overall Satisfaction." Factors such as pleased to be assisting you,
appearance, and follow up, on the other hand, have a negative impact on "Overall Satisfaction."
2.2 NEED OF THE STUDY

The main goal of the study is to comprehend about the services and their level of satisfaction
in different sectors of a public and private sector bank.
The purpose of this analysis is to gain an understanding of the services and level of satisfaction
in multiple areas of a public and private sector bank.

The study looks at the customer service quality among all types of banks, including private and
public banks in various cities and regions across India. The study includes both bank customers
and bankers as respondents. The customers come from a variety of professions, locations,
genders, income levels, and ages.

In order to implement better customer service procedures and assess consumer attitudes, it is
also important to look at the needs and wishes of the customers. Additionally, this research will
advance our understanding of product selection and customer satisfaction with products offered
by banks. This study will contribute to the development of the framework for policy direction
that will attract more clients to the banks.

Overall we can figure out if the respondent (sample size) are satisfied with the services
provided in public sector bank or private sector banks and moreover on the basis of the services
which bank do they prefer more and what suggestions to be provided to the bank to increase
customer satisfaction.
2.3 OBJECTIVES

To conduct this study there have been various important objectives in mind. The following
point explains the chief objectives of the study that has been to achieve from this study.

The objective of this research paper are mentioned below:

● To study the various services provided by the public sector and private sector banks
● To study the level of customer satisfaction by the services provided
● To understand the expectation and level of satisfaction of the private and public sector
bank customers
● To compare which sector does the target audience prefer on a day to day basis.
● To analyze the preference of the variety of services by the public and private sector
bank
● To find out about the factors that impact the customers to select a bank
● To provide Suggestions for improving the service quality
Understanding of concepts

Customer Satisfaction
Customer satisfaction is an indicator of a company's success. It can be defined as how well the
company's products or services meet or exceed the expectations of its customers. Customer
satisfaction is a customer's post-purchase attitude toward a product or service. Because
customers play an important role in keeping a product or service relevant, it is in the best
interests of the business to ensure customer satisfaction and build customer loyalty.

Customer
This study considers only those persons who have a bank account either in private sector or
public sector banks.

Products and services

This study considers only the products and services provided by the private sector and public
sector banks.

Products
This study considers only the products provided by the private sector and public sector banks
like savings accounts and current accounts.

Services
This study considers only the services such as card services, net banking and offline services
provided by the private sector and public sector banks.
2.4 HYPOTHESIS

H01: There is no significant relationship between Gender and the Satisfaction level in the
services they are availing from the bank.
H1: There is a significant relationship between Gender and the Satisfaction level in the services
they are availing from their bank.

GENDER

VALUE OBSERVED N EXPECTED N RESIDUAL

FEMALE 71 51 20(71-20)

MALE 30 50 -20(30-50)

TOTAL 101

ARE YOU SATISFIED WITH THE SERVICES YOU ARE AVAILING FROM YOUR
BANK?

VALUE OBSERVED N EXPECTED N RESIDUAL

YES 77 51 26(77-51)

NO 24 50 -26(24-50)

TOTAL 101
H01: There is no significant relationship between the Sector and the Satisfaction level in
services they are availing from the bank.

H1 There is a significant relationship between the Sector and the Satisfaction level in services
they are availing from the bank.

WHICH SECTOR DO YOU PREFER?

VALUE OBSERVED N EXPECTED N RESIDUAL

PUBIC SECTOR 53 51 2(53-51)

PRIVATE SECTOR 48 50 -2(48-50)

TOTAL 101

ARE YOU SATISFIED WITH THE SERVICES YOU ARE AVAILING FROM YOUR
BANK?

VALUE OBSERVED N EXPECTED N RESIDUAL

YES 77 51 26(77-51)

NO 24 50 -26(24-50)

TOTAL 101
2.5 SCOPE OF THE STUDY

Following are scope of the study:

● The study focuses on finding out whether the customers are satisfied with the services
they are availing from the public sector and private sector bank

● Recent studies and research papers will be used as reference in finding out the level of
customer satisfaction in these banks

● The data collection will be conducted to 101 randomly selected people who will
represent the population

● The scope of the study is limited between the age group 18-55 who has an account in
the bank and is availing at least three services such as branch banking services, Net
Banking, Card Services from their respective banks

● Each of the respondents were given the same questionnaire to answer

● The main source of the data will be the questionnaire, which is prepared by me

These are the scope of the study that will be seen in the entire research paper
3.1 RESEARCH METHODOLOGY

Data collection was conducted in September 2022. The Research was quantitative in nature.
Research Methodology is a way to methodically address a research issue. It is a study of how
logical research is conducted. In essence, it refers to the methodology used by academies to
present, evaluate, and predict wonder. Research methodology is a strategy for systematically
addressing the research problem. It expects to provide the research work plan. It may be
interpreted as a study of deductive research in particular. In it, we examine the several
approaches typically used by a researcher to consider his research question, as well as the
justification for each. Knowing the methodology in addition to the research plans and
methodologies is essential for the researcher.

Researchers not only need to know how to conduct specific tests or generate specific records,
but also need to recognise which of these techniques are important and which are not, as well
as what they might signify, demonstrate, and explain. Researchers must understand the
assumptions underlying various approaches, and they must be aware of the guidelines by which
they might draw the conclusion that particular tactics and procedures will be relevant to
particular problems while others won't. This suggests that prior to conducting the research, it
is essential for the researcher to arrange his methods and decide on the size, quantity, and
location of the entryways, windows, and ventilators. He must clearly and accurately state the
decisions he makes.

Research, which refers to the gathering of facts and information, is one of the most crucial
components of any examination. Showcasing research is defined as the effective planning,
gathering, examination, and publication of facts and discoveries relevant to a specific
advertising condition the firm is facing. My project was developed with both experimental and
expressive research as a foundation. The evaluation process depends on creating the most
effective plan for gathering the necessary data for social events. Making decisions about
information sources, investigative techniques, instrumentation, testing design, and contact
methods are all necessary when planning an examination design.
1) PRIMARY DATA
For Primary data, I created a simple questionnaire for increasing Customer Satisfaction on the
services provided by public sector and private sector banks and distributed it to the people in
order to gather primary data. I wanted to know what their opinions were on the services they
are availing from their bank. I have personally collected the data for this project. To accomplish
my goals for the project, I created this questionnaire. In order to determine which set of people
are present to complete the surveys, I have collected information from the people regarding
their age, gender and name of their banks.
Additionally, it can be observed via primary consumer data about service representatives,
service offerings, facilitation services, accessibility, image, and overall client satisfaction of
public and private sector banks. Respondents were asked to list the key banks that they use the
most. Customers have been chosen at random from public and private sector bank branches to
provide their feedback. On the basis of their feedback the research paper has been designed

A)SAMPLING TECHNIQUE
Due to the fact that the information needed was not particularly technical. To accomplish my
goals and search for further project content. The sampling method used is based on form

B)SAMPLE SIZE
The Sample size is 101. Respondents were spread across various age groups,individuals,
students from different cities all over india.

C)DATA INTERPRETATION
By utilising statistical techniques like Pie charts, table, data are interpreted.

D)DATA TOOL
To analyse the primary data and to come to a conclusion we have used CHI square test for
hypothesis.
2) SECONDARY DATA

Secondary data is research data that has previously been gathered and can be accessed by
researchers. The secondary data contrasts with primary data, and the primary data has been
collected directly from the sources by asking questions, conducting survey and other means
where one has to go out and collect data on their own.

The information that has previously been gathered by the researcher and is easily accessible
from other sources is referred to as secondary data. These data can be obtained more quickly
and for less money than original data, and they may even be available when primary data isn't
attainable in any way. Fundamentally, secondary data allow for a deeper understanding of the
issue and a more distinct point of view on the research at hand. Journals, publications provided
by the government, numerous websites with more elements on the topic related to the services
provided by public sector and private sector banks on the sites have all been used to acquire
secondary data for the study. A mix of primary and secondary data has been used.
3.2 Limitations of the study

Due to constraint of time and as this survey is a self-report instrument, it may have certain
limitations.
The Limitations of the study are:

● For chi square only 2 variables have been used

● The size of the sample was relatively small
● The age of the respondents was limited to the age of 55 only
● The study was limited to the study of 101 respondents only

.
3.3 DATA ANALYSIS

TEST STATISTICS

The chi-square statistic is 2.1579. The p-value is .141836. Not significant at p <.05.

We reject the H0. We have statistically significant evidence at a=0.5 to show that H0 is false
The p-value is .225061

For Chi-square test to have a significant relation between two variables, the -value should be
less than or equal to 0.05. From the above test, it can be seen that the p-value is less than 0.05
i.e p < .05. Hence, this indicates that the null hypothesis H01 is rejected and the alternative
hypothesis H1 is accepted for the above chi-square test.
 TEST STATISTICS

The Chi square statistics is 0.8214. The p-value is .364764. Not significant at p < .05.

We reject the H0. We have statistically significant evidence at a=0.5 to show that H0 is false
The p-value is .364764

For Chi-square test to have a significant relation between two variables, the p-value should be
less than or equal to 0.05. From the above test, it can be seen that the p-value is less than 0.05
i.e p < .05. Hence, this indicates that the null hypothesis H01 is rejected and the alternative
hypothesis H1 is accepted for the above chi-square test
DEMOGRAPHICS

Following is the analysis of the survey that I conducted to collect the primary data by asking
101 respondents the following given question.

THE AGE GROUP OF THE RESPONDENT

PARTICULARS NO. OF RESPONDENTS

18 TO 25 76

25 TO 40 16

40 TO55 9

Analysis and Interpretation: From the above pie diagram we can see that we have received
responses from the people of age groups between 18-25 years, 25-40 years, 40-55 years and
the proportion is 75.2% , 15.8% and 8.9% respectively in numbers it is 76, 16, 9 respectively.
 THE GENDER GROUP OF THE RESPONDENT

PARTICULARS NO. OF RESPONDENTS

MALE 71

FEMALE 30

Analysis and Interpretation: From the above asked question about the gender and the pie
diagram above we can see how many out of the 101 responses we received are male and female.
The percentage of male respondents is 70.3% and that of female respondents is 29.7%. In
numbers the male respondents are 71 and female respondents are 30.
THE OCCUPATION GROUP OF THE RESPONDENT

PARTICULARS NO. OF RESPONDENTS

Student 68

Job Professional 17

Self Employed 14

Housewife 2

Analysis and Interpretation: The information about the various occupations the respondents
are diversified can be seen from the above pie chart.
The various occupations they are involved in are job professional, self employed, some are
students and some are housewives.
There are 67.3% i.e 68 respondents who are students, 15.8% i.e 17 respondents are job
professionals, 14.9% i.e 14 respondents are self employed which means they run and manage
their own business. Lastly, 2% of respondents are housewives.
THE SECTOR OF BANK OF THE RESPONDENT

PARTICULARS NO. OF RESPONDENTS

PUBLIC SECTOR 53

PRIVATE SECTOR 48

Analysis and Interpretation: Out of the 101 responses received, the above pie diagram shows
the proportion of how many of the respondents have accounts in private sector banks and how
many of them have accounts in public sector banks.
Out of 100% , 52.5% have accounts in public sector banks i.e 53 amongst the 101 respondents
and 47.5% have accounts in private sector banks i.e 48 amongst the 101 respondents.
THE ACCOUNT TYPE OF THE RESPONDENT

PARTICULARS NO. OF RESPONDENTS

Savings Account 85

Current Account 10

Salary Account 5

Fixed Deposit 1

Analysis and Interpretation: From the study of the types of accounts taken into consideration
are savings account, current account, salary account and fixed deposit account.
And from the above diagram we can see how many respondents have the different accounts.
9.9% respondents have a current account i.e 10 in numbers, 84.2% respondents have a savings
account i.e 85, then 5 respondents have a salary account and lastly only one respondent had a
fixed deposit account.
THE REASON OF THE RESPONDENT TO CHOOSE THEIR BANK

PARTICULARS NO. OF RESPONDENTS

Friendly behavior by Staff 16

Trust/ Reliability 53

Quick and Fast Services 34

Location 28

Analysis and Interpretation: From the above pie chart and table, respondents were asked the
reason to choose their bank.
In which there were 4 options and out of that 16 chose their bank because of the friendly
behavior by the staff, 53 liked the factor of trust and reliability, 34 liked the Quick and Fast
response of their bank whereas Location being the reason there were 28 respondents.
THE SERVICES THE RESPONDENT IS AVAILING FROM THEIR BANK

PARTICULARS NO. OF RESPONDENTS

Net Banking (online and Mobile) 84

Card services 50

Branch Banking Services/Offline Bank 42

Others 5

Analysis and Interpretation: From the above pie chart and table, respondents were asked the
services they are availing from their respective banks.
Looking at the responses we can see that 82.2% are availing net banking, 49.5% are currently
using the Card Services, 41.6% go to bank offline to use the branch banking services.
 HOW OFTEN DO THEY USE NETBANKING

PARTICULARS NO. OF RESPONDENTS

Regularly 46

Occasionally 27

Rarely 21

Never 7

Analysis and Interpretation: From the above pie chart and table, respondents were asked how
often they use net banking.
Looking at the responses we can see that 45.5% are availing net banking regularly being 46
respondents, 26.7% are using net banking occasionally being 27 respondents, 20.8%
respondents rarely use net banking being 21 respondents and 7 respondents don't use net
banking.
DO THEY FACE SERVER ISSUE WHILE USING NET BANKING

PARTICULARS NO. OF RESPONDENTS

Yes 63

No 38

Analysis and Interpretation: We can analyse that there are majority of the people don't face
server issues with the net banking services being 62.4% and there are few of them who face
server issues while using net banking being 37.6%
Looking at the table, 63 respondents don't face server issues whereas 38 of them face server
issues.
HOW OFTEN DO THEY USE CARD SERVICES

PARTICULARS NO. OF RESPONDENTS

1-3 times a month 71

3-5 times a month 22

5-10 times a month 8

Analysis and Interpretation: The above pie diagram shows the proportion of how many times
in a month the respondents use card services from their respective banks.
Looking at the responses we can see that 71 are availing card services 1 to 3 times a month
whereas 22 are currently using the Card Services 5 times a month and 8 respondents use card
5 to 10 times a month.
 ARE THEY SATISFIED WITH THE SERVICES THEY ARE AVAILING FROM
THEIR BANK

PARTICULARS NO. OF RESPONDENTS

Yes 77

No 24

Analysis and Interpretation: From the above pie chart and table, respondents were asked if
they are satisfied with the services they are availing from their respective banks.
Looking at the responses we come to know that 77 are satisfied and the percentage for the same
is 49.5%, whereas 24 respondents being in the percentage of 23.8% are not satisfied with the
services that they are availing from their bank.
ARE THEY SATISFIED WITH THE OFFLINE SERVICES THEY ARE AVAILING
FROM THE BANK

PARTICULARS NO. OF RESPONDENTS

Yes 69

No 32

Analysis and Interpretation: From the above pie chart and table, respondents were asked if
they are happy with the services provided to them in offline services of the respective bank.
Looking at the responses we can see that 69 are happy whereas 32 respondents are not happy.
THE SATISFACTION LEVEL OF THE CUSTOMER FROM THE SERVICES OF
THEIR BANK

PARTICULARS NO. OF RESPONDENTS

9-10 24

7-8 50

5-6 18

3-4 4

1-2 5

Analysis and Interpretation: Being asked the satisfaction level of all the services we come to
know that 24 respondents have rated their bank from 9-10.
50 respondents feel that the satisfaction level is only 7-8.
5-6 ratings have been given by 18 respondents.
Whereas 5 respondents have given the ratings 1-2.
4.1 FINDINGS AND SUGGESTIONS
Looking at the study conducted, these are few findings and suggestions related to banking
services of the private and public sector banks.

In regards to public sector bank

● Time Management should be better

● Should connect with customer occasionally to resolve their problem
● Staff should be more co-operative
● Fast and better response should be provided
● Server issues for net banking
● Fast offline services

In regards to private sector bank

● First transaction amount should be reduced while opening the bank

● More ATM centres required
● Name, address and basic details should be available to be changed online
● Better returns on interest

Future research could include introduction of foreign policies more based on the performance
on the branch, this leads them more toward better banking, and practising an approach towards
the sustainable and better development. Users of technological services such as ATMs, debit
cards, credit cards, UPS, FES, and customer service are more common in private sector banks
than in public sector banks. A suggestion for public sector banks would be to increase their
technological services and they should promote their products more.
4.2 CONCLUSION

From the findings and analysis of the primary data we come to the conclusion that on the basis
of services people choose private sector banks more, but on the basis of security people choose
public sector banks over public sector banks.
There are certain factors as well that some of them prefer private sector banks but major interest
and trust has been shown in the public sector banks.

At last the overall findings of this study shows that banks must improve their customer service
and the quality of the product. Customers prefer fast offline services and few add ons in the net
banking services as well as better performance increase the chance of the customer to prefer
that bank in the long run. As adult concerns are documented, categorization of customer
complaints is required based on the type of the complaint and the product or service in question.
Since, the banking industry is bound to grow extensively in the next few years; it is up to the
private sector banks to enhance the number of branches to attract customers.

Customer support complaints that cross state lines or internal bank guidelines and regulations
should be handled differently than other complaints in the banking industry. We also found
that if the branch's facilities, such as infrastructure, ambience, decor, sitting area, signage, and
so on, are adequate, it not only leads to customer satisfaction but also to an overall improvement
in the branch's operation, whether it's services by teller, managers, loan services, or mutual
fund services. If all of the signage is appropriate, the customer will be directed to the correct
desk without wasting their time, allowing the service officer to attend to the customers on time
and meet their needs.
Even the employees need to be a little more friendly in the branch (offline services) of the
respective banks. Customers have a negative opinion of the credit facilities and insurance
services offered by private banks, hence private banks should concentrate more on these
services. Customers Faith in public sector banks is high, which they have used to stay
competitive. However, they must enhance their customer service by upgrading their physical
structures and infrastructure, as well as providing sufficient soft skill training to their
employees.
4.3 REFERENCES

Rayappan E K and Shunmughan R (2008), "Customer Satisfaction in Canara Bank", Professional

Banker, June, pp. 61-63.

Balakrishnan R Gayathri (2010), "Customer's Awareness About the Banking Services: A

Study",Southern Economist, Vol. 49, No. 15, p. 2.

Keerthe P and Vijayalaksmi R (2009), "A Comparative Study on the Perception Level of the Services
Offered by Banks", Indian Journal of Marketing, Vol. XXXIX. No. 8. pp. 40-41

CheenuGoel and ChitwanBhutaniRekhi, A Comparative Study on the Performance of Selected Public

Sector and Private Sector Banks in India, Journal of Business Management & Social Sciences

Research (BM&SSR), Volume 2, No.7, July 2013. Garima Chaudhary, Performance Comparison of
Private Sector Banks with the Public Sector Banks in India, International Journal of Emerging Research
in Management &Technology, (Volume-3, Issue-2), February 2014.

Karigoleshwar, Customer Perception towards Banking Services (A Study of selected public and private
banks in Gulbarga), Journal of Radix International Educational and Research Consortium, Volume 2,
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Singh Surbhi and Arora Renu, A comparative study of banking services and customer satisfaction in
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Singh Surabhi, Banking Service and Customer Satisfaction, Thesis submitted at Department of Home
Science, University of Delhi, Delhi, 2012.

Uppal R K, "Marketing of bank products-emerging challenges and new strategies", J M International

Journal of Management Research, 2010, 35-42.

International Journal Of Core Engineering & Management (IJCEM) Volume 2, Issue 1, April 2015 306
Comparative Study of Performance of Public and Private Sector Bank Khushboo Bhatia, Naveena
Chouhan, Neha joshi MBA 2nd sem (HR)

Thakur Satendra, Singh A. P INTERNATIONAL JOURNAL OF MANAGEMENT RESEARCH AND

REVIEW, Aug-2011/ Volume 1/Issue-1/ Article No-3/ Research Article
Aurora S and Malhotra M (1997) Customer satisfaction: A comparative analysis of the satisfaction level
of customer of public and private sector bank. Decision24: 109-30.

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