Preliminary Pages

COMPARATIVE ANALYSIS OF CUSTOMER SATISFACTION IN
FOUR SELECT PUBLIC AND PRIVATE SECTOR BANKS IN

MUMBAI CITY
A THESIS SUBMITTED TO THE

UNIVERSITY OF MUMBAI FOR THE
DOCTOR OF PHILOSOPHY (COMMERCE)
DEGREE IN BUSINESS ECONOMICS
SUBMITTED BY
MS. AIMAN AKBAR ALI PEERZADE
M.Com, NET (COMMERCE), SET (COMMERCE).
UNDER THE GUIDANCE OF
DR. (MRS.) SUCHITRA S. KUMAR

M. A , Ph.D.
THROUGH
GURU NANAK KHALSA COLLEGE OF ARTS, SCIENCE AND

COMMERCE, MATUNGA EAST, MUMBAI 400019
December, 2023
STATEMENT BY THE CANDIDATE
As required by the University Ordinance 770, I wish to state that the work embodied in this
thesis titled “COMPARATIVE ANALYSIS OF CUSTOMER SATISFACTION IN FOUR
SELECT PUBLIC AND PRIVATE SECTOR BANKS IN MUMBAI CITY” forms my own
contribution to the research work carried out under the guidance of DR. (MRS.) SUCHITRA
S. KUMAR at the GURU NANAK KHALSA COLLEGE OF ARTS, SCIENCE AND
COMMERCE, MATUNGA EAST, MUMBAI. This research work has not been submitted
earlier for any other degree of this or any other University. Wherever references have been
made to previous works of others, it has been clearly indicated as such and included in the
Bibliography.
Signature of the Candidate
Ms. AIMAN AKBAR ALI PEERZADE
Date:
Certified by:
Signature of the Guide
Place: Mumbai
Date:
CERTIFICATE OF ORIGINALITY
This is to certify that the thesis entitled "COMPARATIVE ANALYSIS OF CUSTOMER

SATISFACTION IN FOUR SELECT PUBLIC AND PRIVATE SECTOR BANKS IN
MUMBAI CITY", is a bonafide documentation of the research work done by Ms. AIMAN
AKBAR ALI PEERZADE under my guidance and supervision for the degree of Doctor of
Philosophy in Commerce (Business Economics) of University of Mumbai at GURU NANAK
KHALSA COLLEGE OF ARTS, SCIENCE AND COMMERCE, MATUNGA EAST,
MUMBAI.
I confirm that this genuine research work has not been previously submitted for the award of
any Degree, Diploma, Fellowship or other similar title to any University or Academic
Institution.
Research Supervisor / Guide
Place: Mumbai
Date:
ACKNOWLEDGEMENT
It is my pleasant duty to thank a number of people who have helped me directly or

indirectly in the completion of this research work. I take this opportunity to express my
sense of gratitude to all of them. I extend my deepest gratitude to the Almighty ALLAH
for the strength, guidance, and inspiration provided throughout the research process. My
faith has been a constant source of support, helping me to navigate the challenges and
celebrate the successes. I am thankful for the blessings that have illuminated in this
academic journey.
This research work has been completed under the guidance and supervision of Dr. (Mrs.)
Suchitra S. Kumar. I express my deep sense of gratitude for her guidance and valuable
suggestions for this research work. She propelled me in the right direction with excellent
guidance and freedom of thoughts in a friendly atmosphere. I would like to express my
heartfelt gratitude towards Mr. Nilkanth Vishnu Talawdekar for his advice, academic
inputs and vast experience that have enlightened me very much and have enhanced he
levels of this research. I also thank CA Ujwal Dhokania for his unconditional support,
inspiration and motivation throughout my studies.
I am also thankful to Dr. H S Kalsi Principal of Guru Nanak College of Arts, Science and
Commerce (Autonomous) for providing all possible support during the time of my
research work.
I am extremely thankful to the learned authors of selected references, whose writings
proved the base for this thesis.
I wish to make a special thanks to my beloved father Late Mr. Akbar Ali Peerzade and
mother Mrs. Yasmeen Peerzade from bottom of my heart for their blessings. I thank to
my mentor Mrs. Uzma Momin who dreamed me to be doctorate.
Place: Mumbai Ms. Aiman Akbar Ali Peerzade
Date:
TABLE OF CONTENT
SR. NO. CONTENT PG. NO.
01 Introduction.
1.1 Public Sectors.
1.1.1 State Bank of India.
1.1.2 Union Bank of India.
1.2 Private Sector Banks.
1.2.1 ICICI Bank Ltd.
1.2.2 HDFC Bank.
1.3 Chapterisation Scheme.
02 Review of Literature.
2.1 TRADITIONAL APPROACH OF BANKING.
2.1.1 Origin of Worldwide Banking.
2.1.2 Origin of Indian Banking.
2.1.3 Evolution of Indian Banking
2.2 Modern Approach of Banking.
2.3 Important Literature Reviews of Banking.
03 Research Methodology.
3.1 Introduction to Research Methodology.
3.2 Statement of the Study or Problem.
3.3 Objective of the Study.
3.4 Hypothesis of the Study.
3.5 Sampling Design.
3.6 Method of Data Collection.

3.7 Data Analysis \ Statistical Tools.
3.8 Limitation of the Study.
04 Data Analysis and Interpretation.
4.1 Descriptive Analysis.
4.1.1 Public Sector Banks.
4.1.2 Private Sector Banks.
4.1.3 Weighted Average Means of Public Sector Banks.
4.1.4 Weighted Average Means of Private Sector Banks.
4.1.5 Grand Means for Public Sector Banks.
4.1.6 Grand Means for Private Sector Banks.
Consolidated table for Grand Mean for both Private Sector Banks
4.1.7
& Public Sector Banks.
4.2 Inferential Analysis.
Reliability Analysis for both Public Sector Bank & Private Sector
4.2.1
Banks.
Test of Validity for both Public Sector Bank & Private Sector
4.2.2
Banks.
05 Hypothesis Testing.
The Following Hypothesis has been Tested by using Chi Square

5.1
Test.
The Following Hypothesis is tested by Kolmogorov Smirnov
5.2
Test.
The Following Hypothesis has been Tested by using Chi-Square
5.3
Test.
The Following Hypothesis has been Tested by using Multiple
5.4
Regression Analysis.
The Following Hypothesis has been Tested by using Mann
5.5
Whitney U test.
Structural Equation Modeling (SEM) for Overall Satisfaction for
5.6
Public Sector Banks.
5.6.1 Inference for Unstandarized Estimate for Public Sector Banks.
5.6.2 Inference for standarized Estimate for Public Sector Banks.
Structural Equation Modeling (SEM) for Overall Satisfaction for

5.7
Private Sector Banks.
5.7.1 Inference for Unstandarized Estimate for Public Sector Banks.
5.7.2 Inference for standarized Estimate for Public Sector Banks.
Overall Comparison for Overall Satisfaction [Public Sector Banks

5.8
and Private Sector Banks.
Model Fit estimated for Overall Satisfaction [Public Sector Banks
5.9
and Private Sector Banks.
5.10 Overall Conclusion.
5.11 Summary.
06 Finding, Conclusion and Suggestion.
6.1 Findings.
6.1.1 Public Sector Banks.
6.1.2 Private Sector Banks.
6.1.3 Summary of Weighted Average means of Banks.
6.1.4 Summary of Grand Mean.
Reliability Analysis for both Public Sector Bank & Private Sector
6.1.5
Banks.
Test of Validity for both Public Sector Bank & Private Sector
6.1.6
Banks.
6.1.7 Hypothesis Testing.
6.2 Conclusion and Suggestion.
REFERENCES.
APPENDIX
LIST OF TABLES
Sr.
Table No. Title of the Table Page No.
No.
1 1.1 Return on Asset Ratio of SBI Bank
2 1.2 Return on Asset Ratio of Union Bank of India
3 1.3 Return on Asset Ratio of ICICI Bank
4 1.4 Return on Asset Ratio of HDFC
5 1.5 Comparison of Return on Equity in One Table
6 1.6 Comparison of Total Assets in One Table
7 1.7 Comparison of Non-Performing Loans in One Table
8 1.8 Comparison of Return on Assets in One Table
9 1.9 Comparison of Net Income in One Table
Functioning Offices of all four select Public and Private
19 1.10
Sector Banks
11 2.1 Structure of Commercial Banking in 1950
Some Banking Ratios of the Bank of India (1921 to
12 2.2
1950)
Bank Group-wise Deposits of Scheduled Commercial
13 2.3
Banks in June 2021
Number of functioning offices of Public Sector Banks in
14 2.4
June 2021
Number of functioning offices of Private Sector Banks
15 2.5
in June 2021
16 2.6 Private Banks’ Gross NPA’s to Total Advances
17 2.7 Internet usage and Population Statistics in India
Branches and Number of Customers covered by the
18 2.8
Researcher
The amount of banking frauds during 2017-2018 to
19 2.9
2018-2019(Bank group-wise)
Gross NPA and Total Advances of PSBs for the period
20 2.10
2006-202
Gross NPA and Total Advances of Private sector banks
21 2.11
for the period 2006-2020
22 4.1 Classification of Gender
23 4.2 Classification of Marital Status
24 4.3 Classification of Age
25 4.4 Educational Qualification
26 4.5 Occupation
27 4.6 Name of the Public Sector Bank
28 4.7 Type of Account
29 4.8 Rating of the Bank’s ATM
30 4.9 Rating of the bank while opening Bank Account
31 4.10 Usage of Banking Services
32 4.11 Time taken to add a beneficiary for NEFT/ IMPS
transfer payments
33 4.12 Transaction limit per day
34 4.13 Level of Satisfaction with the transaction limit
35 4.14 Option to increase in transaction limit
36 4.15 Extent of Customer Delight
37 4.16 Rating the Bank’s ATM
38 4.17 Grievance Handling (Made a complaint)
39 4.18 Grievance Handling (Solving of complaint)
40 4.19 Bank’s Ombudsman
41 4.20 Usage of Online Portal / Bank Application
42 4.21 Level of satisfaction of the Online Portal
47 4.26 Occupation
Time taken to add a beneficiary for NEFT/ IMPS
53 4.32
transfer payments
64 4.43 Weighted average mean for Bank Infrastructure
65 4.44 Weighted average mean for Service Quality
Weighted average mean for level of customer
66 4.45
satisfaction related to Service Quality
67 4.46 Weighted average mean for Customer Delight
68 4.47 Weighted average mean for Grievance Handling
Weighted average mean for services availed through E-
69 4.48
Banking
70 4.49 Weighted average mean for kind of E-banking services
71 4.50 Weighted average mean for Value Added Services of E-
Banking
72 4.51 Weighted average mean for Services used in App
73 4.52 Weighted average mean for Problems in E-Banking
Weighted average mean for Overall Performance of
74 4.53
Banking Services
75 4.54 Weighted average mean for Bank Infrastructure
76 4.55 Weighted average mean for Service Quality
Weighted average mean for level of customer
77 4.56
satisfaction related to Service Quality
78 4.57 Weighted average mean for Customer Delight
79 4.58 Weighted average mean for Grievance Handling
Weighted average mean for services availed through E-
80 4.59
Banking
81 4.60 Weighted average mean for kind of E-banking services
Weighted average mean for Value Added Services of E-
82 4.61
Banking
83 4.62 Weighted average mean for Services used in App
84 4.63 Weighted average mean for Problems in E-Banking
Weighted average mean for Overall Performance of
85 4.64
Banking Services
Grand Mean for customer satisfaction related to branch
86 4.65
facility
87 4.66 Grand Mean for satisfaction related to Service Quality
Grand Mean for banking services relating to Satisfaction
88 4.67
[Customer Delight]
89 4.68 Grand Mean for Banking services relating to E-Banking
Grand Mean for Banking services relating to Grievance
90 4.69
Handling
Grand Mean for customer satisfaction in the
91 4.70
performance of Public Sector Banks
92 4.71 Summary of Grand Mean for Public Sector Banks
Grand Mean for customer satisfaction related to branch
93 4.72
facility
94 4.73 Grand Mean for satisfaction related to Service Quality
Grand Mean for banking services relating to Satisfaction
95 4.74
[Customer Satisfaction]
96 4.75 Grand Mean for Banking services relating to E-Banking
Grand Mean for Banking services relating to Grievance
97 4.76
Handling
Grand Mean for customer satisfaction in the
98 4.77
performance of Public Sector Banks
99 4.78 Summary of Grand Mean for Private Sector Banks
100 4.79 Consolidated table for Grand Mean for both Public
Sector Banks &Private Sector Banks
Cronbach’s Alpha (α) for factors to determine customer
101 4.80
satisfaction related to branch facility [Infrastructure]
Cronbach’s Alpha (α) for satisfaction related to Service
102 4.81
Quality
Cronbach’s Alpha (α) for Banking services relating to
103 4.82
your satisfaction [Customer Delight]
Cronbach’s Alpha (α) for Banking services relating to
104 4.83
E-Banking
Cronbach’s Alpha (α) for banking services relating to
105 4.84
Grievance Handling
Cronbach’s Alpha (α) for customer satisfaction in the
106 4.85
performance of Public & Private Sector Banks
Summary of Reliability Statistics for Customer
107 4.86 Satisfaction for both Public Sector Banks and Private
Sector Banks
108 4.87 Test of Validity [Model Summary]
109 4.88 ANOVA
Standardized and Unstandardized Regression
110 4.89
Coefficients
Observed & Expected values for Customer Satisfaction
111 5.1
for Public sector banks
Chi-Square Analysis for Customer Satisfaction for
112 5.1 (a)
Public sector banks
Observed & Expected values for Customer Satisfaction
113 5.2
for Private sector banks
114
Private sector banks
115 5.2 (a)
Kolmogorov Smirnov Test for Customers’ preferences
116 5.3
for Public Sector Banks
Kolmogorov Smirnov Test for Customers’ preferences
117 5.4
for Private sector banks
Chi-Square values for Service Quality in Public Sector
118 5.5
Banks
Chi-Square values for Service Quality in Private Sector
119 5.6
Banks
120 5.7 Model Summary of Public Sector Banks
121 5.8 ANOVA of Public Sector Banks
122 5.9
Coefficients for Public Sector Banks
123 5.10 Model Summary of Private Sector Banks
124 5.11 ANOVA of Private Sector Banks
125 5.12
Coefficients for Private Sector Banks
Mann Whitney U Ranks for Public Sector Banks and
126 5.13
Private Sector Banks
KMO and Bartlett’s Test of hypothesis (for factor
127 5.14 analysis)
Communalities for Service Quality for Public Sector

128 5.14 (a)
Banks
Eigen Values explaining the Percentage of Variance for
129 5.14 (b)
Service Quality for Public Sector Banks
Rotated Component Matrix (for deciding the number of
130 5.14 (c)
factors) for Service Quality for Public Sector Banks
KMO and Bartlett’s Test of hypothesis (for factor
131 5.15
analysis)
Communalities for Service Quality for Private Sector
132 5.15 (a)
Banks
Eigen Values explaining the Percentage of Variance for
133 5.15 (b)
Service Quality for Private Sector Banks
Rotated Component Matrix (for deciding the number of
134 5.15 (c)
factors) for Service Quality for Private Sector Banks
135 5.16 Summary table of Hypothesis
136 6.1 Grand Mean of Public Sector Banks
137 6.2 Grand Mean of Private Sector Banks
Consolidated table for Grand Mean of both Public
138 6.3
Sector Banks &Private Sector Banks
Summary of Reliability Statistics for Customer
139 6.4 Satisfaction for both Public Sector Banks and Private
Sector Banks
LIST OF GRAPHS
Sr.
Table No. Title of the Graph Page No.
No.
1 1.1 Return on Asset Ratio of SBI Bank
2 1.2 Return on Asset Ratio of Union Bank of India
3 1.3 Return on Asset Ratio of ICICI Bank
4 1.4 Return on Asset Ratio of HDFC
5 1.5 Comparison of Return on Equity in One Graph
6 1.6 Comparison of Total Assets in One Graph
7 1.7 Comparison of Non-Performing Loans in One Graph
8 1.8 Comparison of Return on Assets in One Graph
9 1.9 Comparison of Net Income in One Graph
14 4.5 Occupation
20 4.11
transfer payments
35 4.26 Occupation
41 4.32
transfer payments
1- INTRODUCTION
As the foundation of the financial system, the banking sector is essential to the economic
growth of any country. Public and private banks alike are realizing more and more that a
competitive market has made client happiness a critical factor in success. Mumbai, India's
financial center is a busy city where the banking industry grows thanks to a varied and active
clientele. In order to do a comparative analysis of customer satisfaction in four carefully chosen
public and private sector banks operating in Mumbai, this research sets out on a thorough
investigation.
The capital of the Indian state of Maharashtra, Mumbai, is a sizable metropolis with a
high population density. The city occupies an area of roughly 233 square miles, or 603 square
kilometers. It is made up of seven islands that were progressively connected over time by land
reclamation initiatives. It is located on India's west coast. Mumbai's boundaries geographically
stretch from the southern tip of Colaba to the northern suburbs, encompassing territories across
the Thane Creek that include Navi Mumbai. For efficient government, the city is split up into
several administrative zones and municipal wards.
With Mumbai serving as India's financial hub, the city's banking sector plays a critical
role. Maharashtra, the capital city of India, is a vast metropolis called Mumbai, formerly known
as Bombay. It is the center of trade, commerce, and economic activity, making a major
contribution to the GDP of the nation. Mumbai's banking industry is essential to the smooth
operation of the city's government, corporate, and individual financial transactions.
How effectively a product or service meets or beyond a customer's expectations is

measured by customer satisfaction. It expresses how well a consumer's interaction with a
company or brand corresponds with their requirements, tastes, and expected advantages.
Reaching high customer satisfaction levels are crucial for organizations because it has a direct
impact on repeat business, client loyalty, and favorable word-of-mouth recommendations. In
light of the increased expectations and demands of customers, customer satisfaction research has
become essential in modern banking operations. Customers have different service experiences
when choosing between banks in the public and private sectors. These differences are affected by
things like efficiency, innovation, and customer-centricity.It is essential to comprehend the
subtleties of customer satisfaction at these banks in order to develop strategies that, in a highly
competitive market, both draw in and keep consumers.
The degree of satisfaction attained by clients of public and private sector banks is
contrasted in this study. Four banks—two representing the public sector and two representing the
private sector—are chosen for the purpose of comparison. The following is a list of the four
chosen banks:
1.1Public Sector Banks:
1.1.1 State Bank of India
1.1.2 Union Bank of India
1.2 Private Sector Banks:
1.2.1 ICICI Bank Ltd.
1.2.2 HDFC Bank
1.1.1 STATE BANK OF INDIA:
The biggest bank in India's public sector and among the biggest banks in the nation as a
whole is State Bank of India (SBI). The State Bank of India Act allowed for the establishment of
the State Bank of India on July 1, 1955. A number of previous presidency banks, including the
Bank of Bengal (1806), the Bank of Bombay (1840), and the Bank of Madras (1843), merged to
become it. The Government of India owns the majority of SBI, making it a government-owned
bank. SBI is organized into three levels: the Head Office, Regional Offices, and Branches.
Mumbai, Maharashtra, is home to the bank's headquarters. Since SBI has been around for more
than 200 years, Indians have trusted it more than any other bank throughout the course of many
generations.With a quarter of the Indian banking market, SBI is the biggest bank in the country.
It has over 22,000 branches, 62,617 ATMs/ADWMs, and 71,968 BC outlets. The bank's core
values—Service, Transparency, Ethics, Politeness, and Sustainability—directly aligns with its
unwavering focus on innovation and customer centricity.
Through its several subsidiaries, including SBI General Insurance, SBI Life Insurance,
SBI Mutual Fund, SBI Card, etc., the Bank has effectively diversified its commercial operations.
It has established a global footprint and operates through 229 offices in 31 other countries,
spanning many time zones. Customers can readily access SBI from anywhere in India because to
its extensive branch network. State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State
Bank of Mysore, State Bank of Patiala, and State Bank of Travancore are only a few of the
affiliate banks and subsidiaries of State Bank of India. Since then, SBI has combined these
companies in order to improve workflow and unify the banking system. SBI has offices and
branches throughout more than 30 countries, indicating its substantial global reach.
It conducts business through joint ventures, representative offices, and overseas

subsidiaries. To meet the demands of its overseas clients, SBI provides services like international
treasury services, correspondent banking, trade finance, and remittances. In India, SBI has taken
a leading role in advancing financial inclusion. It has put in place a number of programs to give
the unbanked and impoverished segments of society access to banking services. Government
initiatives including the Pradhan Mantri Jan DhanYojana (PMJDY), Direct Benefit Transfer
(DBT), and Pradhan Mantri Mudra Yojana (PMMY) have been made possible in large part by
SBI. SBI's financial performance and market capitalization have been strong for a long time. For
its corporate governance, social activities, and financial services, it has won numerous honors
and awards.SBI's reputation and stability make it a trusted institution among customers and
investors. ( www.sbi.co.in )
TABLE 1.1:
Return on Asset Ratio of SBI Bank
SBI
Return On Asset Ratio
Year Percentage
2019 0.08%
2020 0.50%
2021 0.49%
2022 0.69%
2023 0.97%
GRAPH 1.1:
Return on Asset Ratio of SBI Bank
SBI
1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
2019 2020 2021 2022 2023
Source: The Banker Database,2023.
From the above data, the Return On Asset Ratio of SBI between the year 2019 to 2023
can be analysed. In 2019, the Return on Asset ratio was at its lowest at 0.08%, and it is at its
highest in 2023 with 0.97%. From 2020-21, the graph hit a plateau with minor fluctuations
ranging between 0.50% to 0.49% and started increasing in the following year with 0.69%.
1.1.2 UNION BANK OF INDIA:
In India, Union Bank of India is a public sector bank. On November 11, 1919, Union
Bank of India was founded in Mumbai, Maharashtra. One of the biggest and oldest banks in
India, the Head Office was opened in 1921 by the nation's father, Mahatma Gandhi. Union Bank
of India is a publicly traded, government-owned financial institution, with the Indian government
owning 83.49 Percent of the bank's total share capital. It runs its business through a nationwide
network of branches and offices. It has a multi-tiered organizational structure, and Mumbai
serves as its headquarters. To manage its activities and assist the branches, the bank maintains
zonal and regional offices.As of March 31, 2023, it employed over 75,000 people and operated a
network of over 8,500 domestic branches, 10,800 ATMs, and 17,600 BC Points, catering to over
155 million users. As of March 31, 2023, the Bank's total business was valued at Rs.
19,27,621crore, of which Rs. 11,17,716 crore came from deposits and Rs. 8,09,905 crore from
advances. Along with its three overseas branches, the Bank also maintains a representative
office in Abu Dhabi, a banking subsidiary in London, a banking joint venture in Malaysia, four
domestic para-banking subsidiaries, two joint ventures, and one associate, Chaitanya Godavari
Gramin Bank. It provides a range of services to make foreign exchange, remittances, and
international trade easier.Union Bank of India combined with Corporation Bank and Andhra
Bank in April 2020 as part of a government drive to amalgamate public sector banks. The goal of
the merger was to build a more powerful and effective banking organization. In terms of its
financials and market presence, Union Bank of India has performed satisfactorily.It has received
recognition and awards for its banking services, Technology Talent, digital initiatives, and CSR
activities, Best Financial Inclusion etc. ( www.unionbankofindia.co.in )

TABLE 1.2:
Return on Asset Ratio of Union Bank of India
UNION BANK OF INDIA
Return On Asset Ratio
Year Percentage
2019 -0.59%
2020 -0.56%
2021 0.26%
2022 0.44%
2023 0.65%
GRAPH 1.2:
Return on Asset Ratio of Union Bank of India
UNION BANK OF INDIA

0.80%
0.60%
0.40%
0.20%
0.00%
2019 2020 2021 2022 2023
-0.20%
-0.40%
-0.60%
-0.80%

From the above data, the Return On Asset Ratio of Union Bank of India between the years 2019
to 2023 can be analysed. In 2019, the Return on Asset ratio was at its lowest at -0.59%, and it is
at its highest in 2023 with 0.65%. The graph saw an increase in the following years with ratio -
0.56%, 0.26% and 0.44% in 2020,2021 and 2022 respectively.
1.2.1 ICICI BANK:
One of the top banks in India's private sector is Industrial Credit and Investment
Corporation of India (ICICI). ICICI Bank was founded in 1994 as the sole subsidiary of the
Indian financial company ICICI Limited. It was among the first banks in India to open in the
private sector following the banking industry's liberalization. In 1998, ICICI Bank went public
on a stock exchange. It functions throughout India through an ATM and branch network. The
organization is divided into three tiers: the Head Office, Zonal Offices, and Branches. Mumbai,
Maharashtra, is home to the bank's headquarters. When it comes to using digital banking
solutions and technology, ICICI Bank has led the way. To improve ease and user experience, it
has added cutting-edge features and services.The bank has created reliable digital wallets, mobile
banking apps, and online banking platforms. In order to increase operational effectiveness and
provide customized services, it has also embraced cutting-edge technology like machine learning
(ML) and artificial intelligence (AI). ICICI Bank is well-known throughout the world. It
conducts business in a number of nations, including the US, the UK, Canada, Singapore, and the
United Arab Emirates, through its subsidiaries, branches, and representative offices. Worldwide
operations enable worldwide trade and remittances while meeting the financial needs of global
clientele. A variety of services are offered by ICICI Bank to its corporate and wholesale banking
customers.It provides corporate entities, small and medium-sized enterprises (SMEs), and
government organizations with working capital finance, project finance, trade finance, treasury
services, cash management solutions, foreign exchange services, and other specialized banking
services. When it comes to its finances and market presence, ICICI Bank has constantly done
well.It has won numerous honors and recognitions for its corporate governance, technological
advancements, financial services, and client happiness. ICICI Bank announced on March 17,
2020, the launch of 'ICICI Stack,' a collection of the nation's most extensive digital banking
services, to guarantee consumers an uninterrupted banking experience during the period after the
corona virus epidemic when customers were recommended to stay indoors. As of June 30, 2022,
the Bank's total assets were recorded at ₹ 14,15,581 crore. Its network comprises 13,222 ATMs
and 5,534 branches throughout India. The bank prioritizes providing excellent client service and
happiness. It seeks to offer its clients simple, individualized banking experiences across a range
of channels, such as customer care centers, mobile apps, and internet platforms.The bank has
won several awards. Few of them are the Financial Performance Excellence, Digital
Transformation, Service Innovation etc.
( www.icicicareers.com )
TABLE 1.3:
Return on Asset Ratio of ICICI Bank
ICICI BANK OF INDIA
Return on Asset Ratio
Year Percentage
2019 9.09%
2020 8.80%
2021 9.73%
2022 9.85%
2023 10.19%
GRAPH 1.3:
Return on Asset Ratio of ICICI Bank
From the above data, the Capital Asset Ratio of ICICI Bank between the years 2019 to
2023 can be analysed. In 2019, the ratio was at 9.09%, and it is at its highest in 2023 with
10.19%. From 2020-22, the graph showed growth 8.80%, 9.73% and 9.85% in 2020, 2021 and
2022 respectively.
1.2.2 HDFC BANK:

One of the biggest private sector banks in India, Housing Development Finance
Corporation (HDFC) Bank is renowned for providing a wide range of banking and financial
services. As a division of the Housing Development Finance Corporation (HDFC) group, HDFC
Bank was founded in August 1994. It was among the first private banks in India to receive a
banking license. Throughout India, the bank has a sizable network of branches and ATMs. The
organization is divided into three tiers: the Head Office, Regional Offices, and Branches. The
Bank's authorized share capital as of December 31, 2020, is Rs. 650 crore.As of the specified
date, the Bank's paid-up share capital was Rs 550,76,56,932, which is made up of 550,76,56,932
equity shares with a face value of Re 1/-each. About 18.57% of the Bank's stock is held by the
HDFC Group, while the ADS Depositories own approximately 18.57% of the equity in relation
to the Bank's American Depository Shares (ADS). Foreign Institutional Investors (FIIs) own
32.11% of the Bank's stock, with 13,49,591 shareholders. Mumbai, Maharashtra, is home to the
bank's headquarters. The Bank operated a nationwide distribution network with 7,821 branches
and 19,727 ATMs (also known as Cash Deposit & Withdrawal Machines, or CDMs) spread
throughout 3,811 cities and towns as of March 31, 2023.HDFC Bank has consistently performed
well in terms of financials, market capitalization, and customer satisfaction. It has received
numerous awards and accolades for its banking services, technological innovations, customer-
centric approach, and corporate governance.
( www.hdfc.com )
TABLE 1.4:
Return on Asset Ratio of HDFC
HDFC Bank
Return on Asset Ratio
Year Percentage
2019 1.74%
2020 1.73%
2021 1.77%
2022 1.8%
2023 1.82%
GRAPH 1.4:
Return on Asset Ratio of HDFC
The above data shows the Return on Asset Ratio of HDFC Bank from 2019-2023. It
witnessed a fall from 2019 to 2020 with 1.74% to 1.73% respectively. In the following years the
chart shows improvement with 1.77%, 1.8% and 1.82% in 2021, 2022 and 2023 being the
highest respectively.
TABLE 1.5:
Comparison of Return on Equity in One Table
Return on Equity
Bank Name 2019 2020 2021 2022 2023
HDFC Bank 14.56 15.43 15.14 15.38 15.90
ICICI Bank 4.72 8.65 12.18 14.11 16.03
State Bank of India 1.28 8.19 8.38 11.74 15.53
Union Bank of India -10.93 -9.18 4.37 7.35 10.70
Unit type: Percentages %
Copyright The Financial Times Ltd 2023. Source: TheBankerDatabase.com
Net Income for the year divided by Total Equity, expressed as a %
GRAPH 1.5:
Comparison of Return on Equity in One Graph
Return on Equity
20.00
15.00
10.00
5.00
-
2019 2020 2021 2022 2023
-5.00
-10.00
-15.00
HDFC Bank ICICI Bank State Bank of India Union Bank of India

The above data compares the Return on Equity of the four selected banks between 2019-
2023. HDFC Bank shows minor fluctuations throughout the graph and creates a plateau with
14.56% in 2019 to 15.90% in 2023. ICICI Bank shows growth from 4.72% in 2019 to 16.03% in
2023. State Bank of India also shows a considerable increase overall with1.28% in 2019 to
15.53% in 2023. Union Bank of India shows major growth starting at a negative value with -
10.93% in 2019 to reaching 10.70% in 2023.
TABLE 1.6:
Comparison of Total Assets in One Table
Total Assets
Bank Name 2019 2020 2021 2022 2023
HDFC Bank 1,86,903 2,09,687 2,44,831 2,80,034 3,07,764
ICICI Bank 1,79,094 1,82,689 2,14,124 2,31,188 2,38,201
State Bank of India 5,62,161 5,56,770 6,59,268 7,07,147 7,24,206
Union Bank of India 72,080 73,685 1,47,262 1,57,468 1,56,696
Unit type: USD m (US Dollar Millions)
Total Assets held on the balance sheet
GRAPH1.6:
Comparison of Total Assets in One Graph
Total Assets (Amount in USD million)
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
-
2019 2020 2021 2022 2023

The above statistics show the Total Assets (Amount in USD millions) of the four selected
banks. HDFC Bank started at amount 1,86,903 in 2019 and shows an overall growth with
amount 3,07,764 in 2023. ICICI Bank also shows a similar graph to HDFC with amount
1,79,094 in 2019 to 2,38,201 in 2023. State Bank of India has the highest amount compared to
the other 3 banks with 5,62,161 in 2019 and increased to 7,24,206 in 2023. Union Bank of India
has a low graph compared to the others with amount 72,080 in 2019 to 1,56,696 in2023.
TABLE 1.7:
Comparison of Non-Performing Loans in One Table
Non-Performing Loans (NPL%)
Bank Name 2019 2020 2021 2022 2023
HDFC Bank 1.39 1.43 1.53 1.33 1.19
ICICI Bank 6.70 5.53 4.96 3.65 2.82
Union Bank of India 14.98 14.15 13.74 11.11 7.53
Gross non-performing loans, whether impaired or not, (outstanding over 90 days but still accruing interest,
plus any non-accrual loans) divided by Gross Total Loans (not including deductions for loan loss
provisions), expressed as a %
GRAPH1.7:
Comparison of Non-Performing Loans in One Graph
Non-Performing Loans (NPL%)
16.00
14.00
12.00
10.00
8.00
6.00
4.00
2.00
-
2019 2020 2021 2022 2023

The above data shows the fluctuations in Non-Performing Loans (NPL%) of the four
selected banks. HDFC Bank shows a plateau with minor fluctuations from1.39% in 2019 to 1.19
in 2023. ICICI Bank shows a considerable reduction from6.70% in 2019 to 2.82% in 2023. State
Bank of India also shows a steady reduction from 7.43% in 2019 to 2.75% in 2023. Union Bank
of India shows considerable reduction with 14.98% in 2019 to 7.53% in 2023.
TABLE 1.8:
Comparison of Return on Assets in One Table
Return on Assets
Bank Name 2019 2020 2021 2022 2023
HDFC Bank 1.74 1.73 1.77 1.80 1.82
ICICI Bank 0.46 0.82 1.29 1.51 1.81
Union Bank of India -0.59 -0.56 0.26 0.44 0.65
Net Income for the year divided by Total Assets, expressed as a %
GRAPH1.8:
Comparison of Return on Assets in One Graph
Return on Assets (%)
2.00
1.50
1.00
0.50
-
2019 2020 2021 2022 2023
-0.50
-1.00
The above graph shows a comparison between the four banks on the basis of Return on
Assets (%) between 2019-2023. HDFC Bank shows minor fluctuations with a plateau like graph
starting at1.7% in 2019 to 1.82% in 2023. ICICI Bank shows growth with 0.46% in 2019 to
1.81% in 2023. State Bank of India shows fluctuations with an overall growth at 0.08% in 2019
to 0.97% in 2023. Union Bank of India shows growth from -0.59% in 2019 to 0.65% in 2023.
TABLE 1.9:
Comparison of Net Income in One Table
Net Income
Bank Name 2019 2020 2021 2022 2023
HDFC Bank 3,245 3,621 4,334 5,032 5,613
ICICI Bank 822 1,489 2,771 3,501 4,313
State Bank of India 444 2,804 3,250 4,905 7,024
Union Bank of India -424 -414 385 687 1,025
Unit type: USD m (US Dollar Millions)
Pre-Tax Profits minus Taxes

GRAPH 1.9:
Comparison of Net Income in One Graph
Net Income (USD millions)

8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
-
2019 2020 2021 2022 2023
-1,000
The above data compares the Net Income (USD millions) of the four banks between 2019
to 2023. HDFC Bank shows steady growth from 3,245 in 2019 to 5,613 in 2023. ICICI Bank
also shows a steady growth throughout the selected time period with 822 in 2019 to 4,313 in
2023. State Bank of India shows the best growth compared to the other banks with 444 in2019 to
7,024 in 2023. Union Bank of India shows growth as well but is the lowest incomparison to the
other four banks with -424 in 2019 to 1,025 in 2023.
TABLE 4.10:
Functioning Offices of all four select Public and Private Sector Banks
Bank Marc Marc Marc Marc Marc Marc Marc Marc Marc Marc
Name h h h h h h h h h h
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
SBI 25,08 24,79 24,95 23,56 23,47 23,88 18,36 17,97 17,49 17,03
7 2 4 5 7 5 7 4 2 4
UBI 8,857 9,164 9,687 4,438 4,444 4,453 4,428 4,342 4,224 4,018
ICICI 5,787 5,363 5,245 5,304 4,881 4,873 4,856 4,456 4,073 3,776
HDF 7,895 6,413 5,675 5,321 5,035 4,817 4,777 4,582 4,079 3,467
Resource: Database on Indian Economy; RBI’s Data Warehouse. (dbie.rbi.org.in)
The above table shows the increase in number of functioning offices of the selected banks
(SBI, UBI, ICICI, HDFC) from March 2014 to March 2023. It can be observed that SBI had the
maximum increase in offices in comparison to the other banks from 17,034 to 25,087 from 2014
to 2023 respectively with an increase of 25,087. Next, UBI witnessed an increase of 4,839 from
2014 to 2023 with 4,018 to 8,857 respectively. ICICI had a growth of 2,011 from 2014-23 with
3,776 to 5,787 respectively. HDFC grew from 3,467 to 7,895 from 2014 to 2023 with a growth
of 4,428.
1.3 Chapterisation Scheme:

This thesis is organized into several chapters to ensure a systematic exploration of the
topic. Following is the chapterisation Scheme:
Chapter 1: Introduction:
The first chapter “Introduction” serves as a crucial opening that sets the stage for
the entire research work of Customer Satisfaction in Public Sector Banks and Private
Sector Banks. It is the section which provides context, background, rationale, and an
overview of what the reader can expect in the chapters.
Chapter 2: Review of Literature:

The second chapter “Review of Literature” comprises critical and comprehensive
analysis of existing research, RBI Reports, Scholarly Articles, Books, and other relevant
sources related to the research topic. It serves as an essential component of academic and
research papers, theses, dissertations as well, as it helps to establish the context, justify
the significance of the study, and identify gaps in the existing knowledge.
Chapter 3: Research Methodology:

The third chapter “Research Methodology” outlines the approaches, methods, and
procedures which are used to conduct the research. This chapter exhibits the sampling
design, sampling method, sample size and the methods through which data is collected
and how it is analysed, statistical tools used such as Descriptive Statistics and Inferential
Statistics. It serves as the backbone of the research, providing a clear and structured
explanation of how the research questions or hypotheses can be addressed.
Chapter 4: Data Analysis and Interpretation:

The fourth chapter “Data Analysis and Interpretation” involve the systematic
examination of the data collected during the course of research work and the process of
deriving meaningful insights and conclusions from that data. This phase is crucial for
addressing the research questions or hypotheses and for making a significant contribution
to your field of study. It includes the Weighted Average Mean, Grand Mean and the
Summery of Grand Mean related to the various dimensions and parameters of Public
Sector Banks and Private Sector Banks.
Chapter 5: Hypothesis Testing:
Chapter fifth “Hypothesis Testing” delves into the theoretical foundation,

methodologies, and practical applications of hypothesis testing within the specific context
of the research. This chapter demonstrate understanding of how hypothesis testing fits
into the research objectives and contributes to the advancement of knowledge in the
research field.Hypothesis Testing is a powerful tool that enables researchers to make
informed judgments, validate claims, and uncover the hidden patterns that govern our
world.This chapter aims to provide the understanding of evaluation and validation of
hypotheses. At its core, the process involves formulating two competing hypotheses: the
null hypothesis (H0) that posits no effect or relationship, and the alternative hypothesis
(HA) that proposes a specific effect or relationship.
Chapter 6: Findings, Conclusion and Suggestion:
The chapter sixth “Findings, Conclusion and Suggestion”is a crucial chapter

which presents the results of the research work of Customer Satisfaction in Public and
Private Sector Banks, offer a comprehensive conclusion based on the findings, and
provide recommendations for future research or practical applications. This chapter
serves as the culmination of the research journey, summarizing the insightsgained and
outlining the broader implications of the research work.
In summary, this research sets out to contribute to the understanding of customer

satisfaction in the banking sector by undertaking a comparative analysis in the vibrant city of
Mumbai. The subsequent chapters delve deeper into the intricacies of the research, providing a
comprehensive exploration of the factors influencing customer satisfaction in both public and
private sector banks.
2- Review of Literature
The banking system is the foundation of every nation's economy. The banks only
contribute to nation-building when they operate efficiently. In India's economic development,
banking is essential. Banks play a major role in supporting economic growth and stability
through supplying a wide range of financial services, providing capital, and promoting
financial intermediation. It makes it easier for money to move into companies, infrastructure,
agriculture, and other areas, which encourages capital formation and creates jobs. It also
maintains price stability, manages the economy's liquidity, and reins in inflation. Banking
procedures were very different in antiquity from what they are today. Temples were initially
regarded as Banking Centers. Personal relationships and trust underpinned the system's
operation. Precious metals, including gold, were highly valuable. When loans were needed,
people would deposit their gold and other valuables with reliable people or organizations.
There were numerous such systems and customs that were regionally specific and fulfilled
comparable functions. This chapter covers a survey of the literature on the history of banks
globally, how Indian banks have evolved, and how their system has grown over time.
A review of the literature is an analysis of the corpus of work that is currently
available on a certain topic. A literature review is a written work that evaluates the key facets
of current knowledge, including noteworthy discoveries and theoretical and methodological
developments related to a certain topic. The following reviews of numerous research papers,
RBI Reports, theses, and books were completed in order to meet the study's objectives.This
chapter undertakes a review of the literature on banking services. Since literature reviews are
secondary sources, they don't present any brand-new or innovative experimental work. A
literature review can also be thought of as an assessment of an abstract feat.
2.1 TRADITIONAL APPROACH OF BANKING:

2.1.1 Origin of Worldwide Banking:
The origins of banking can be found in the prehistoric era, when credit and other
financial activities were commonplace. Below is a summary of the global banking
industry's history and development:
 Ancient Mesopotamia and Egypt:
Banking traces its roots to ancient Mesopotamia (modern-day Iraq) and Egypt, where
temples and palaces served as centres of financial activities. Temples acted as safe places
for storing valuable assets and grains, while palace treasuries facilitated lending and
borrowing activities. These early institutions offered loans, conducted money exchanges,
and acted as intermediaries in trade.
 Ancient Greece and Rome:
In ancient Greece, banking activities were primarily carried out by private individuals
known as "trapezitai." They offered loans, exchanged currencies, and provided safe
storage for valuable goods. In ancient Rome, banking developed through various financial
institutions called argentarii. These institutions facilitated money transfers, currency
exchange, and provided loans to merchants.
 Medieval Islamic World:
A vast banking system developed in the Muslim world during the Islamic Golden
Age, which lasted from the eighth until the fourteenth century. Sharia law was
adhered to by Islamic banks, which forbade the charging of interest (usury). Rather,
they utilized ideas like risk- and profit-sharing. During this time, a number of
financial instruments and procedures were established that continue to have an impact
on Islamic banking today.
 Italian Renaissance:
The Italian Renaissance (14th to 17th centuries) marked a significant turning point in
banking history. Italian city-states like Florence and Venice became prominent
financial centres, and banking families such as the Medici gained immense wealth and
influence. These banks provided a range of services, including currency exchange,
loans, and financing for international trade.(S. Hemant, 2011)
 Emergence of Central Banks:
The concept of central banking emerged during the 17th century. The Bank of
Sweden (SverigesRiksbank), established in 1668, is recognized as the world's oldest
central bank. Its primary purpose was to stabilize the currency and promote economic
growth. The Bank of England, established in 1694, became the first central bank in
the United Kingdom, providing a framework for monetary policy and acting as the
government's banker.
 Colonial Banking and Development:
During the colonial era, European powers established banks in their colonies
to support trade and colonial administration. The Bank of Bengal, established in 1806,
was one of the earliest colonial banks in India. Similar banks were established in other
colonies, facilitating financial transactions and credit services.
 Industrial Revolution and Modern Banking:
The banking industry saw tremendous transformation in the 18th and 19th
centuries as a result of the Industrial Revolution. The emergence of factories,

industries, and trade imposed a demand for banking services and capital. With the
emergence of joint-stock banks, people were able to pool their resources and create
banks with greater capacity. These banks helped to modernize the banking industry by
providing funding to encourage industrial expansion.
 Banking Regulations and Central Banking Systems:
In order to preserve financial stability in the 20th century, central banking
institutions and banking laws were established. The United States Federal Reserve
System was founded in 1913 to act as the nation's central bank. In order to maintain
financial stability, manage inflation, and oversee monetary policy, numerous nations
established central banks in response.
The banking industry has changed over time to adapt to the shifting demands
of society. The industry has been instrumental in promoting commerce, financial
stability, and economic prosperity. (Davides, Glyn, 2002)
2.1.2 Origin of Indian Banking:
 There is evidence of banking operations going back more than 2,000 years, which is
when Indian banking first began. This is a chronology detailing the inception and
development of banking in India:
 Ancient and Medieval Periods:
During ancient and medieval times, banking in India primarily revolved around
indigenous banking practices. Merchants and moneylenders played a crucial role in
facilitating trade and providing financial services. The indigenous banking system included
various forms of informal credit arrangements such as money lending, hundis (bills of
exchange), and shroffs (money changers). Temples and royal treasuries also acted as
depositories for wealth and offered loans.
 Ancient Period:
The barter system, which involved direct trade of products and services without the
use of a means of exchange like money, was the main form of economic transaction in
ancient India. Subsequently, Indigenous banking techniques were as important. It first
appeared in ancient India when traders and merchants organized into guilds known as
"Shrenis" to ease financial transactions. These guilds provided loans and protected
savings, functioning as the forerunners of modern banks. These native financial systems
had their roots in the customs and culture of the ancient Indian subcontinent. The majority
of the Indian financial system was made up of indigenous financial institutions up to the
middle of the nineteenth century. They gave credit to the governments of the day as well
as to manufacturers and commerce.Medieval Period:
With the advent of Islam and the arrival of Arab traders, Islamic banking practices
were introduced in medieval India. Islamic banking principles, based on Sharia law,
prohibited charging interest (usury) but allowed profit-sharing arrangements and risk-
sharing partnerships.Indigenous banking practices continued to exist alongside Islamic
banking. Moneylenders known as "Shroffs" provided credit facilities and acted as
intermediaries between borrowers and lenders. The hundi system, a widely used bill of
exchange, became prevalent during the medieval period. Hundi facilitated long-distance
trade and money transfer, acting as an early form of negotiable instrument. In South
India, the Chettiar community played a significant role in banking during the medieval
period. They provided credit, maintained accounts, and acted as intermediaries between
villages and distant commercial centres.(R. K. Nigam, 1986)

During both the ancient and medieval periods, banking in India was primarily
localized and based on indigenous practices. It revolved around the needs of local
communities, merchants, and traders, facilitating trade and financial transactions within
specific regions.
It's important to note that the modern banking system in India, as we know it today,
evolved during the colonial era and post-independence period, with the establishment of
banks like the Bank of Bengal (1806), Bank of Bombay (1840), and Bank of Madras
(1843), which eventually merged to form the Imperial Bank of India (1921), now known
as the State Bank of India (SBI).(Choudhury Sushil, 1997)
 The Advent of European Banks:
- Modern banking procedures were introduced to India in the 16th century when
European colonial forces arrived. Along with establishing their trade stations, the
Portuguese, Dutch, French, and British also brought Western banking ideas.
Established in 1770 in Calcutta (now Kolkata), the Bank of Hindustan was the first
European bank in India.The following is a synopsis of European banks in India:
- Portuguese Banks:
When the Portuguese arrived in India in the late 15th century, they became the first
Europeans to establish a commercial presence there. Along India's western coast, they
founded a number of trading colonies, notably Goa, Daman, and Diu. Although there
is little evidence available about particular Portuguese banks, it is thought that they
ran financial organizations to facilitate their commerce
.Dutch Banks:
In the early 17th century, the Dutch East India Company (VOC) came in India and set
up trading settlements around the nation, namely at Surat, Pulicat, and Cochin. The
VOC enabled trade and offered financial services to its staff by issuing bills of
exchange and operating its own banking system. However, the VOC's banking
activities were primarily focused on internal operations rather than catering to the
local Indian population.
- French Banks:
In the latter part of the 17th century, the French East India Company, or Compagnie
des IndesOrientales, arrived in India and set up trading offices in locations such as
Pondicherry, Chandernagore, and Mahe. They established banks to handle their
financial operations, which included issuing notes and giving their staff and retailers
access to credit. Additionally, the French brought banking procedures including
promissory notes and bills of exchange. (Ray R.K., 2002)
2.1.3 Evolution of Indian Banking:
The evolution of Banking Industry in India can be elaborated under twophases i.e.
Before Independence and After Independence. As described below -
The General Bank of India, the country's first bank, was founded in 1786, laying the
groundwork for commercial banking in India throughout the 18th century. With the
specific charter of the British East India Company, three presidential banks—Bank of
Calcutta (1809), Bank of Bombay (1840), and Bank of Madras (1843)—came into
existence later. It was not until the establishment of the Bank of Calcutta in 1809 that
the Indian government realized the necessity of banks. In 1840, the Bank of Bombay
was established with a capital of Rs. 52,25,000. Established in 1843, the Bank of
Madras had a capital of thirty lakhs rupees. The main cities across the nation are home
to the branches of all these presidency banks. Many Indian merchants felt that a bank
called Union Bank was necessary, but it was unable to prosper and closed within ten
years in 1839.(Reserve Bank of India, 1970)
The introduction of the limited liability concept to joint stock banks in 1860 marked
the beginning of a new chapter in the history of public banks in India. In India, there
was little to no banking legislation up to that point. Numerous banks had appeared
overnight and were primarily brought down by fraud, mismanagement, and
speculative activity on the part of those in charge of their organization, management,
and flotation.
In 1865, Allahabad Bank was set up and it was the onewhich was completely runs by
Indians. Today it is one of the oldest Public Sector Banks in India which is serving its
banking services across the country with ahugenetwork of branches for the last 150
years. Another bank established under the EuropeanManagement was the Bank of
Hindustan at Calcutta in 1870. In 1895, Punjab NationalBank Limited was established
with its head quarter at Lahore. There were severalother bankswere established viz.
Bank of Indian Limited in 1906, Central Bank of India in 1906,Canara Bank in 1906,
Indian Bank Limited in 1907, Bank of Baroda in 1908, theCentral Bank of India
Limited in 1911 and Bank of Mysore in 1913. Those three Presidency Banks were
merged with each otherand converted into a new bank, called Imperial Bank of India
which was established on 27th January, 1921 and was run byEuropean Shareholders
at that time. (Choudhury S., 1997)
However, the Act denied the Bank the authority to print notes, which meant it
was left in charge of the nation's money. However, until the Reserve Bank of India
was established in 1935, it was permitted to hold government balances, manage public
debt, and oversee clearing houses. In addition to assuming all of the Imperial Bank of
India's responsibilities, the Reserve Bank of India also had the authority to act as the
latter's agent in locations where it lacked branches. The Imperial Bank of India was
strongly advocated to be nationalized following India's independence. Nonetheless,
the government opposed it for two reasons. First, the bank had branches outside India
which created political problems of great magnitude; secondly, it was thought that
nationalisation was likely to divest the bank of its useful commercial functions. The
Rural Banking Enquiry Committee (1950), too, recommended against its
nationalisation. But the Rural Credit Survey Committee recommended the
nationalisation of the Imperial Bank of India.(Davies G., 2002)
The Indian banking industry faced crisis duringthe period 1913 to 1917 and
consequently the need to establish an apex bankinginstitution like Central Bankwas
felt for sound co-ordination in banking functions.Between 1941 and 1945, the number
of banks rapidly increased from 473 to 737 but these banks suffered from certain
limitations such as inadequate capital structure and unsound methods of operations
and management. Banks were under private ownership of the maharajas, or kings of
the princely states of India. These banks used to serve rich families and industrial
houses and this narrowed the growth of banking system. This critical situation made
the need of a Central Bank to the great extent and thenauthority set up the Royal
Commission to come out from these critical bankingcircumstances. Royal
Commission recommended its suggestion for establishment of aCentral Bank in India.
Accordingly, the British Government passed the act andReserve Bank of India was
established and commenced its functions since 1st April,1935 in accordance to the
provision of RBI Act 1934. (Reserve Bank of India, 1970)
When the Reserve Bank of India Act 1934 came into effect, an important
function of the RBI was to hold the custody of the cash reserves of banks, granting
them accommodation in a discretionary way and regulating their operations in
accordance with the needs of the economy through instruments of credit control. With
regard to the banking system of the Country, the primary role of the RBI was
conceived as that of the lender-of-last-resort for the purpose of ensuring the liquidity
of the short-term assets of banks.
As per the RBI Act 1934, the functions of the Reserve Bank of India are divided
under the following categories:
(A) Central Banking Functions; and
(B) Other Functions.
(A) Central Banking Functions:
(i) Issue of Bank Notes:
Under Section 22(i) of the Reserve Bank of India Act, 1934, the Bank was
given the sole monopoly of the issue of bank notes in India from 1st April, 1935. For
this purpose, the Bank maintains a separate department known as the Issue
Department. Notes were issued on a basis of a minimum currency reserve system.
(ii) Bankers' Bank:
Another important function of the Bank is the regulation of banking. All the
scheduled banks are required to keep with the Reserve Bank a consolidated 3
per cent of their total deposits, and the Reserve Bank has power to increase
this percentage up to 15. The accumulation of these balances with the Reserve
Bank places it in a position to use them freely in emergencies to support the
scheduled banks themselves in times of need as the lender of last resort. To a
certain extent, it is also possible for the Reserve Bank to influence the credit
policy of scheduled banks by means of an open market operations policy, that

is, by the purchase and sale of securities or bills in the market. The Reserve
bank has another instrument of control in the form of the bank rate, which it
publishes from time to time.
(iii) Government Banker:
The Central and State Governments are also served by the Reserve Bank of
India as their banker. Maintaining funds on account for the Central and State
Governments, making payments up to the balances on their respective accounts,
remitting exchanges and other banking functions, and overseeing the public debt are
all part of the duties of a banker. It must conduct Central Government business
without receiving payment. Additionally, the Bank advises the government on all
financial issues and floats loans and treasury bills on behalf of the federal and state
governments.
(iv) Foreign Exchange:
The Reserve Bank is charged with preserving the rupee's external stability in
its capacity as the nation's central bank. It now has exclusive authority to manage and
control foreign exchange. For instance, approval from the Reserve Bank is required
for anyone wishing to purchase or sell foreign currency.
(v) Miscellaneous Central Banking Functions:
Apart from the fundamental central banking functions mentioned above, the
Reserve bank performs a number of subsidiary or ancillary functions incidental to its
position as the apex bank of the country. These include:

(a) Supply of different forms of currency:
(b) The extension of remittance facilities;
(c) The management of the clearing house; and
(d) Tendering advice on financial matters, collection and dissemination of banking
statistics, etc.
(B) Other Functions:
The Reserve Bank is authorised to transact the following ordinary banking
business:
(a) Acceptance of money on deposits without interest from the Central and State
Governments, banks, local bodies and any otherperson.
(b) The purchase, sale and rediscount of bills of exchange and promissory notes
drawn and payable in India and arising out of bonafide transactions, bearing two or
more signatures, one of which must be that of a scheduled bank, and maturing within
90 days from the date of purchase or rediscount.
(c) The purchase, sale and rediscount of bills, drawn and payable in India for
financing agricultural operations or marketing of crops, and maturing within 15
months from the date of purchase. Or,
(d) The purchase, sale and rediscount of bills issued or drawn for holding or trading in
securities of the Central or State Governments and maturing within 90 days.
(e) The making of loans and advances to States, local bodies, scheduled banks and
State co-operative banks.
(f) The making of ways and means advances to Central and State Governments.
(g) The purchase and sale of securities of the Central and State Governments.
(h) The issue of demand drafts made payable at its own officesor agencies and
making, issuing and circulating bank post bills.
(1) The borrowing of money from a scheduled bank in India or fromcentral banks in
other countries.
(j)The opening of an account, or making of an agency agreement, with central banks
in other countries and acting as their agent and investing funds in their shares.
(k) The purchase and sale of gold and bullion.
(1) RBI also plays an important role in the maintenance of exchangevalue of the rupee
and acts as an Agent of the Government in respect of India's membership of
International Monetary Fund.
(m) All such functions as may be incidental to or consequential upon theexercise of its
powers or the discharge of its duties under the Act.(Reserve Bank of India, 2020)
On the one hand, first half of the twentieth century witnessed a
mushroom growth of banks; on the other, there was a failure of many banks
because of mismanagement and irrational credit policies; as a result, 1917,
1932, 1939 were the years of banking crisis in India. Some of the important
causes of bank failures during the period were:
(i) Many of the managers as well as directors of banks were incompetent and had little
knowledge either of the principles or of the practice of banking.
(ii) There was keen competition and rivalry among them to attract deposits. This led
them to offer much higher rates of interest than they could really afford.
(iii) In order to be able to pay the high rates of interest, they employedthe funds at
their disposal in hazardous enterprises.
(iv) There was also a great paucity of funds with these banks, whichmostly depended
on deposits which could be used only for giving short-term loans and advances.
(v) Most of these banks had locked up too large a proportion of their deposits in
industrial investments. As a result, when their depositorsgot frightened and wanted to
withdraw money, the bank's resourcesproved to be inadequate, and they failed.
(vi) Many banks had blocked large sums in speculative dealings in silver, pearls and
other commodities. During the period of depression, therefore, they had to suffer huge
losses as a result of which they had to close their doors.
(vii) These banks used to keep very low cash reserves. Even the liquid assets of many
were small and precarious. Till 1913, there was no Act for regulating banking
companies. Again, till the beginning of 1937, joint-stock banks in India were
registered under the Indian Companies Act, 1913, and were governed by its general
regulations. With the exception that in a few matters, the Act made a distinction
between banks and other companies. But, the provisions of this Act were very
inadequate for the regulation of banking and had left many banking institutions
altogether free from regulation.
(viii) There was no central bank in India till 1934 to control, supervise and help the
joint stock banks in times of crisis.(S.G. Panandikar, 1966)
The first attempt at banking legislation in India was the passing of the Indian
Companies (Amendment) Act, 1936, the new legislation, which embodied some of
the recommendations of the Indian Central Banking Enquiry Committee. The special
status of scheduled banks was recognized though certain provisions of the amended
Act, such as building up of reserves, were made applicable only to non-scheduled
banks.(Reserve Bank of India, 2011)
From the year 1913 to 1948, approximately 1100 small banks came into
existence. To give an organized structure to the banking sector and to formalize the
financial activities of commercial banks, Banking Companies Act, 1949 was
introduced by Government of India and later it was named as Banking Regulation
Act, 1949.(V. K. Narasimhan, 1954)
As a symbol of freedom, On 15 August 1947, the first Prime Minister of India,
Jawaharlal Nehru raised the Indian national flag above the Lahori Gate of the Red
Fort in Delhi.
During the pre-nationalization period, the industrial sector claimed the lion's
share in bank credit. Within the industry, the large-scale sector cornered the bulk of
credit and the share of small-scale industries was marginal. There were many reasons
for the dominance of large industrial companies in the banking sector. Firstly, many
commercial banks were under the ownership/control of big industrial houses.
Secondly, through common directors (called interlocking of directorship); many
commercial banks were connected with industrial and business houses, facilitating the
flow of credit to large industries. Thirdly, the established industrial houses could
obtain industrial licenses easily and, on that basis, appropriate long- term bank credit.
(Reserve Bank of India, 970)
A disturbing feature of the pre-nationalization banking policy was the
negligible share of agricultural sector in bank credit. This share hovered around 2 per
cent of total commercial bank credit. The privately-owned commercial banks were
neither interested nor geared to meet the risky and small credit requirements of the
farmers. Similarly, the share of other non-industrial sectors in bank credit was also
low.
Since the commercial banks were under the control of big industrialists, the
lendable funds of the banks were sometimes used to finance socially undesirable
activities like hoarding of essential commodities.(Reserve Bank of India, 2004)
The British ruled in India for approximately 250 years, they
establishedbanking industry which functioned to give more strength to British system.
WhenIndia got its independence in 1947, inherited economy from British was very
stringentand banking industry was one of them. In this period the banking industry in
Indiawas functioning in the form of joint stock companies focusing only in major
citiessimilar to British Era. The banks’ financial assistance mostly was available to
theexports of major things like Tea, Jute, Textile and Sugar industry etc. But
thesebanking activities were operating without any specific rule and regulation. After
partition in 1947, one great incidence took place in banking industry that some
branches ofbanks were closed by Pakistan which located in its geographical area.
Later on, approximately 55 banks were liquidated in 1949 and wiped out from
bankingindustry.(Reserve Bank of India, 1970)
The crisis in Indian banking industry was also shown in the period of 1948-
53.This crisis forced to get away poor banking units from industry. The major
reasonbehind the banking crisis of 1948-53 was the partition of the country into two
nationsi.e. India and Pakistan. Due to partition process of the country people were
migratedfrom one country to other but proportionately the banking assets having by
themigrated people could not transferred. Before the independence period, there
wastotal 1100 number of banks functioning in India and the rate of growth in
bankingsector was found very slow. In order to improve the functioning of Indian
Banks, theGovernment of India introduced the Banking Companies Act, 1949. This
act was later amended in 1965 and now known with the name of Banking Regulation
Act 1949. It was the first regulatory step by the Government of independent India,
which gave extensive powers to the Reserve Bank for banking supervision as the
central banking authority of the country. It included various powers such as protecting
the interests of depositors, organization, management, audit and liquidation of the
banking companies, control over opening of new banks and branch offices, powers to
inspect books of accounts of the banking companies, and preventing voluntary
winding up of licensed banking companies. Through elimination and mergers, the
number of banking institutes was reduced. The RBI accelerated the task of
consolidation in 1960, when the scope of the Banking Companies Act was widened.
Between 1954 and 1966, 217 weak banks were either amalgamated or liquidated or
their liabilities and assets transferred to other banks. (Reserve Bank of India, 2006)
Table 2.1:
Structure of Commercial Banking in 1950
Sr.
No. Category of Banks No. of Banks Deposits (Rs lakh)
1. All banks 1205 130428
(8) (1251)
2. Commercial banks 605 100217
(8) (1249)
3. Indian joint stock banks 584 82770
(5) (1197)
4. Imperial banks 1 23164
(3) (1183)
5. (a) Class A1 banks 74 52270
(b) Class A2 banks 73 4659
(c) Class B banks 189 2176
(d) Class C banks 123 370
(e) Class D banks 124 131
6. Exchange banks 15 17039
(3) (52)
Note: Figures in brackets relate to the year 1870.
Sr. RATIO 1921 1935 1939 1945 1950

No
1. Credit/Deposit 60.65 33.67 42.58 26.40 43.09
(50.95)* (55.93) (40.82) (51.22)
2. Loans/Total advances 36.22 23.99 25.05 28.50 93.79
3. Cash credit overdrafts/Total 43.70 66.31 63.77 64.42 ------

advances
4. Bills discounted and 20.07 9.70 11.18 7.00 6.21

purchased/Total advances
(21.89)
5. Total advances/Total assets 53.98 21.16 37.25 25.00 39.97
(43.48) (46.28) (34.14) (39.97)
6. Government securities/Total 13.05 47.18 44.72 56.02 38.80

assets
(34.33) (32.19) (43.0) (31.0)
7. Money at call/Total advances 0.63 0.56 0.52 8.58 2.98
Source: RBI, Banking and Monetary Statistics in India, Bombay, 1954.

Table 2.2:
Some Banking Ratios of the Bank of India (1921 to 1950)
Notes: (i) Figures in brackets are for Class A1 banks.
(ii) Figures are for 1936.
Sources: RBI, Banking and Monetary Statistics of India, Bombay, 1954.
In 1951, when the First Five Year Plan (1951-56) was launched, the development of
rural India was accorded the highest priority. The All-India Rural Credit Survey Committee
recommended the creation of a State-partnered and State-sponsored banks by taking over the
Imperial Bank of India and integrating with it, the former State-owned or State-associated
banks. Accordingly, an Act was passed in the Parliament in May 1955 and the State Bank of
India was constituted on July 1, 1955. After independence, it was the major reform of
banking industry. Later, the State Bank of India (Subsidiary Banks) Act was passed in 1959
enabling the State Bank of India to take over eight former State-associated banks as its
subsidiaries.Themajor objective behind the establishment of State Bank of India was to
manage thebanking activities across the country by acting as major agent of the Reserve Bank
ofIndia. State Bank of India became stronger in 1960 with the nationalization of itsseven
subsidiary Banks.(State Bank of India, 2002)
With the passing of time after 1960s, the role of banking industry became
veryimportant for the growth of Indian economy. Many new entrepreneurs entered
intobanking industry and various kinds of banking services came into existence. Now
theGovernment of India realized the need for making the prevailing banking functions ofthat
time in favour of society and nation. With this perceptive, Indira Gandhi, the-thenPrime
Minister of Indiaexpressed the intention of Government of India in favour ofnationalization
of bank.The message was conveyed in the Annual Conference Meeting of All India Congress
via the paper named “Stray Thoughts on Bank Nationalization”. This move forced the Indian
government to issue the regulations and resulted into the nationalization of fourteen biggest
Commercial Banks on 19 July 1969 with the following objectives in view:
1. To break the ownership and control of banks by a few business families.

2. To prevent concentration of wealth and economic power.
3. To mobilize savings of the masses from every nook and corner of the country.
4. To pay greater attention to the credit needs of the priority sectors like agriculture and small
industries
A national leader JayaprakashNarayana explained the action as a “Masterstroke of political
sagacity” in 2 weeks of issuance of regulation and ordinance.(Reserve Bank of India, 2005)
This paper was accepted with big hands and accordinglyGovernment of India took
initiative by passing an ordinance for nationalization of 14major commercial banks with
effect from 19th July, 1969, whose deposits were overRs. 50 Crore. The list of all these 14
banks is given below-
i. The Central Bank of India Ltd.:
It was established by Sir SorabjiPochkhanawala in around 1911. After a
few years, it opened a branch in Hyderabad. The bank played an important role in
creating the first Indian exchange bank called the Central Exchange Bank of India
in around 1936 in London.
ii. The Bank of India Ltd.:
Bank of India was established on 07 September 1906 by a group of
businessmen from Mumbai. It started with a single office in Mumbai and made
tremendous growth over the years.
iii. The Punjab National Bank Ltd.:
The Punjab and Sind Bank was established on 24 June 1908 by Bhai Vir
Singh, Sir Sunder Singh Majitha and SardarTarlochan Singh. It was established in
Amritsar, Punjab as 'The Punjab and Sind Bank Ltd. Its objective was to help the
weaker sections of the society. It is headquartered in New Delhi, India and it was
nationalized in 1980 and was renamed as Punjab & Sind Bank.
iv. The Bank of Baroda Ltd.:
Bank of Baroda was established under the leadership of Maharaja
SayajiraoGaekwad III, Maharaja of Baroda, in around 1908. It is headquartered in
Vadodara (formerly known as Baroda), Gujarat. Whereas, it’s corporate office is
located in Mumbai, Maharashtra.
v. The United Commercial Bank Ltd.:
UCO Bank was established by Ghanshyam Das Birla in around 1943.
Formerly, it was known as United Commercial Bank. It is the government of India
undertaking headquartered in BTM Sarani, Kolkata.
vi. The Canara Bank Ltd.:
. It started its journey by the name of Canara Hindu Permanent Fund that was
established in around 1906 by AmmembalSubba Rao Pai in Mangalore. Later it
was renamed Canara Bank Limited in 1910.
vii. The United Bank of India Ltd.:
UBI was the result of the merger in 1950 of four Bengali banks: Comilla Banking
Corporation, Bengal Central Bank, Comilla Union Bank and Hooghly Bank. All
four had suffered runs in December 1983 after the failure of the Nath Bank. The
Reserve Bank of India assisted the banks in amalgamating to form United Bank of
India.In 1961, UBI merged with Cuttack Bank and Tezpur Industrial Bank. Four
years later, in 1965, the government of Pakistan took over the bank's branches in
Pakistan.At the time of nationalisation UBI had only 174 branches.
viii. The Dena Bank Ltd.:

Dena Bankwas founded on 26 May 1938 by the family of DevkaranNanjee,
under the name DevkaranNanjee Banking Company. It adopted its new name,
Dena (DevkaranNanjee) Bank, when it was incorporated as a public company in
December 1939.
ix. Syndicate Bank Ltd.:
It was founded in 1925 in Manipal, Udupi, Princely State of Mysore and one
of the oldest and major commercial banks of India. It was founded by
UpendraAnanthPai, T. M. A. Pai and VamanSrinivasKudva.It was the only Indian
bank with the headquarter in a rural area.At the time of its establishment, the bank
was known as Canara Industrial and Banking Syndicate Limited.
x. The Union Bank of India Ltd.:
Union Bank of India was established in 1919 and was inaugurated by
Mahatma Gandhi. At the time when India got freedom from the Britishers, it had
only four branches out of which three were in Mumbai and one in Saurashtra. Its
headquarters is located in Mumbai, Maharashtra.
xi. The Allahabad Bank Ltd.:
Allahabad Bank was founded in Allahabad in 1865. It was the oldest still
running joint stock bank in India and headquartered in Kolkata. By the end of the
19th century, it had branches at Jhansi, Kanpur, Lucknow, Bareilly, Nainital,
Calcutta, and Delhi.
xii. Indian Bank:
Indian Bank was established in March 1907 as Indian Bank Limited. It started
operations on 15 August 1907. Today, it is one of the nationalised banks in India
and is headquartered in Chennai.
xiii. The Bank of Maharashtra Ltd.:

Bank of Maharashtra was established in Pune by V.G. Kale and D.K. Sathe in
1935. It became a Schedule Bank during 1944. However, it achieved autonomous
status in 1998 that reduced the government interference in its internal affairs and
the decision-making process.Its headquarter is located in Pune.
xiv. The Indian Overseas Bank Ltd.:
Indian Overseas Bank was established by Thiru M. Chidambaram Chettyar in around
1937 with an objective of promoting foreign exchange operations and overseas banking
transactions.The bank is headquartered in Chennai. ((Reserve Bank of India, 2005)
Over 85 per cent of the total deposits with the banking system passed into public
control with the nationalisation of these 14 banks. The total deposits with banks at the end of
June 1969 were of the order of Rs. 4,600 crores; of this, deposits amounting to Rs. 2,700
crores were accounted for by the 14 nationalised banks. The State Bank and its subsidiaries
had deposits amounting to Rs. 1,300 crores. Thus, the nationalised sector of banking
possessed Rs. 4,000 crores out of the total deposits of Rs. 4,600 crores.
To cope up the emerging economic needs of Indian economy and putting morecontrol
on credit delivery systems of private banks, the government of Indianationalized six more
private commercial banks on 15th April 1980 having depositsmore than Rs. 200 Crore. These
six nationalized banks have listed below –
i. The Andhra Bank Ltd.:
BhogarajuPattabhiSitaramayya founded Andhra Bank in 1923 in
Machilipatnam, Madras Presidency.Raja YarlagaddaSivarama Prasad was the
individual who committed the financial resources for starting the institution.The
bank was registered on 20thNovember 1923.
ii. The Corporation Bank Ltd.:

Corporation Bank was founded on 12thMarch 1906 in Udupi, with ₹5,000
capital, Haji Abdulla Haji KhasimSahebBahadurwas founding president, and
guided by the principles of the Swadeshi movement of BalGangadhar Tilak.
iii. The New Bank of India Ltd.:
New Bank of India was established in 1936, in Lahore by Mulk Raj Kohli, a
professor of Economics turned banker. It moved its head office to Amritsar in
1947, and then to New Delhi in 1956. It acquired Didwana Industrial Bank in
1965, Chawla Bank in 1969, and Sahukara Bank in 1971. Earlier New Bank of
India had acquired Punjab & Kashmir Bank.
iv. The Oriental Bank of Commerce Ltd.:
Its earliest date of incorporation as per the Registrar of Companies is 1901.Rai
BahadurLalaSohanLal, the first Chairman of the Bank, founded OBC in 1943 in
Lahore. Within four years of its coming into existence, OBC had to face Partition.
The bank had to close down its branches in the newly formed Pakistan and shift
its registered office from Lahore to Amritsar.
v. The Punjab and Sind Bank Ltd.:
The bank was established in Amritsar on 24 June 1908 by Bhai Vir Singh, Sir
Sunder Singh Majitha, and SardarTarlochan Singh to serveSind and Punjab areas
of colonial India.The bank was founded on the principle of social commitment to
help the weaker section of the society in their economic endeavours to raise their
standard of life.
vi. The Vijaya Bank Ltd.:
During the economic chaos created out of the Great Depression of 1927–30,
Shetty approached leading Bunt personalities to start a bank with the objective of
extending credit facilities at a lower rate of interest to enable the farmers to

cultivate their lands and prevent them from falling into the clutches of money
lenders.Vijaya Bank was established by a group of farmers led by A. B. Shetty on
23rdOctober 1931in Mangalore in Dakshina Kannada district of Princely State of
Mysore (present-day Karnataka). Since it was established on day of
Vijayadashami, it was named "Vijaya Bank".
During 1980s, the Government of India was controlling 91 percent of
thebanking business in India with its 20 nationalized banks.The reason behind this
nationalization was to give more power, control and authorityto the government on
money and financial institutions. After another step of nationalization, the Indian
government controlled the major portion of the banking industry in India. (Reserve
Bank of India, 2005)
The demand and time liabilities of these banks on 14 March, 1980 were about
Rs. 200 crores. The amount to be paid in respect of the transfer of undertakings of the
above six banks was Rs. 18.50 crores. With the nationalisation of the above six banks,
the number of public sector banks increased to 28 (comprising the State Bank of India
and its 7 subsidiaries and 20 nationalised banks) exclusive of Regional Rural Banks.
Later on the first mergebetween two nationalized banks took place in 1993,
and New Bank of India wasmerged with Punjab National Bank. As a result, the total
numbers of nationalizedbanks were reduced from 20 to 19. During 1990s, the growth
rate of nationalizedbanks was 4 percent and recorded similar to the average growth
rate of Indianeconomy of that time but they were facing some problems like
increasing NPAs,competition, overstaffing, inefficiency etc.(Reserve Bank of India,
2005)
The broad objectives of the Government’s decision to nationalise the 14 major
banks in 1969 were summed up by Prime Minister Indira Gandhi in the Parliament on
July 21, 1969, as follows:
While the nation is committed to establish a socialist pattern of society, the
Government felt that the public ownership and control of the commanding heights of
the national economy and its strategic sectors were essentialand important aspects of
the new social order which we are trying to build. As the financial institutions are
amongst the most important levers for the achievement of its social objectives, the
nationalisation of major banks was felt a significant step in the process of public
ownership over the principal institutions for the mobilisation of people's savings and
canalising them towards productive purposes. The Government felt that the public
ownership of the major bankswill help in the most effective mobilisation and
development of national resources so that our objectives can be realised with a great
degree of assurance.
The primary objective of nationalisation of banks was to shift vast financial
resources from the hands of a few large business houses (controlling these banks) to
the true and rightful claimants, i.e., all sections of society especially the sections so far
neglected by the banks. The nationalisation process thus heralded the beginning of
social banking, mass banking and innovative banking.
The important reasons for the nationalisation of major banks in India can be
enumerated as follows:
(a) Equitable distribution of economic power: Before nationalisation, most of the
major banks in the country were owned and managed by industrialists and
businessmen and, therefore, they used to get the major portion of credit granted by the
banks. That is why, the most important reason for the nationalisation of banks was to
equitably distribute the economic power, so far concentrated in the hands of a small
minority. Even the Monopolies Enquiry Commission, 1965, observed that big
business had an advantage over small businesses in obtaining assistance from banks.
(b) To provide finance to neglected sectors of agriculture, small-scale industries etc.:
Some important sectors of Indian economy like agriculture and small-scale industries
were not provided with sufficient amount of credit by banks because of risk involved
in financing these sectors. Public ownership and control of large banks was felt
essential to bring about such changes in the banking policies and practices which may
provide finance to neglected sectors.
(c) Removal of malpractices: One of the reasons of nationalisation was to remove the
malpractices adopted by banks to favour industrialists and big businessmen. It was not
possible to completely stop such malpractices till the management of the banks
remained in the hands of industrialists and big businessmen.
(d) Expansion of banking facilities: Banks in India mostly confined their activities to
urban areas with the result that rural areas remained outside their purview. Most of the
commercial banks did not expand their business to small towns and rural areas
because it was not a profitable proposition in the initial years. This was one of the
reasons for the nationalisation of banks so that a massive programme of branch
expansion be launched to mobilise deposits and provide credit facilities in rural areas.
(Shaktikanta Das, 2019)
In addition to the economic reasons stated above, there was also a need for a
change in attitude, outlook and objectives of the banks. Banking institutions are not
ordinary commercial enterprises but they provide essential public utility services and
also help in the achievement of the social objectives and, therefore, they ought to be
under public ownership.
Liberalisation period starts in India during early 1990s, the-then Narsimha
RaoGovernment made a policy to make the licensing system of new banks more
liberal tofulfil the needs of more banking services in the economy. Accordingly, a
number ofdifferent kinds of private and foreign banks were established which known
as NewGeneration tech-savvy banks. (Reserve Bank of India, 2005)
The post-nationalization period witnessed a remarkable expansion in
the banking and financial system. The biggest achievement of nationalization
was the reallocation of sectoral credit in favour of agriculture, small industries
and exports which formed the core of the priority sector.
Nationalization of commercial banks was a mixed blessing. After
nationalization there was a shift of emphasis from industry to agriculture. The
country witnessed rapid expansion in bank branches, even in rural areas.
Branch expansion programme led to mobilization of savings from all parts of
the country. Nationalized banks were able to pay attention to the credit needs
of weaker sections, artisans and self-employed. However, bank nationalization
created its own problems like excessive bureaucratization, red-tapism and
disruptive tactics of trade unions of bank employees.(Reserve Bank of India,
2009)
2.2 MODERN APPROACH OF BANKING:

Modern banking in India has witnessed significant transformations over the years,
driven by technological advancements, changing consumer expectations and
regulatory reforms. These reforms included the establishment of new private sector
banks, the introduction of foreign banks, the deregulation of interest rates, and the
implementation of prudential norms based on international standards. These reforms
paved the way for modernization and transformation in the banking sector.
This part of the chapter provides an overview of the key developments and trends in
modern banking in India, highlighting the emergence of regulatory changes, digital
banking and the impact of technology on the banking sector.
Indian economy is one of the fastest growing economies in the world. But it was a
completely different scenario in 1991. The year when new policies and reforms were
introduced. The year which serves as a backbone to many of the current policies and
decisions.It was during Narasimha Rao’s government in 1991, that India met with
the economic crisis which occurred due to its external debt. Due to debt, the
government was not able to make the payments for the borrowings it had made from
the foreign countries. As a result, the government had to adopt new measures to
reform the conditions of the Indian economy. There were many programs and
initiatives introduced primarily consisted of liberalization, privatization, and
globalization.The main objectives of privatization were reducing the workload of the
public sector, providing better goods and services to the end users, improving the
government’s financial condition, and many more. Privatization was a way to allow
the entry of foreign direct investments and bringing healthy competition into the
economy.(Reserve Bank of India, 2000)

The Government of India set up a high-level committee with Mr. M.
Narasimham, a former Governor of the Reserve Bank of India as Chairman to
examine all aspects relating to the structure, organisation, function and
procedures of the financial system in July, 1991. This committee on the
Financial System submitted its report in November 1991. The Committee's
recommendations were based on thefundamental assumption that the resources
of the banks came from the general public and were held by the banks in trust
and that they were to be deployed for the maximum benefit of the depositors.
The Committee wanted the Government to make a positive declaration that
there would be no more nationalisation of banks, RBI should permit the
setting up of new banks in private sector, provided they confirm to the
minimum startup capital and other requirements. There should be no
difference in the treatment between public sector banks and private sector
banks.
In one of the report in Trend and Progress of Banking in India, 1992, RBI
stated clearly "Commercial Banks thus need to become conscious that they are
entering a challenging environment and will have to redefine their position within the
financial industry. New ways and methods will have to be determined in order to
successfully respond to the new challenges, particularly, the growing demands from
customers for high quality service."(Reserve Bank of India, 2019)
Keeping in view the recommendations of Narasimham Committee and to
introduce greater competition and in improve profitability and efficiency of the
banking system, the RBI finally decided to allow private banks to be set up. The
following guidelines were issued by the RBI in this connection on January 22, 1993.
1. The bank shall be registered as a public limited company under the Companies Act,
1956.
2. The bank will be governed by the provisions of RBI Act, 1934 and Banking
Regulation Act, 1949.
3. The minimum paid up capital of such banks shall beRs. 100 crore.
4. The shares of the banks should be listed in stockexchanges.
5. Such banks (New) shall not be allowed to set up a subsidiary or raise mutual fund
until the completion of three years from the date of establishment.
6. The banks shall have to observe priority sector loan lending target as applicable to
other domestic banks. However, some relaxation may be given for an initial period of
three years by RBI in view of fact that they are new entrant.
7. Such banks, shall makes full use of modern infrastructural facilities and office
equipment, computer, telecommunication etc. in order to provide good customer
service. (Reserve Bank of India, 2004)
The Government has permitted individuals, corporations, foreign and non-
resident individuals to open private bank in India. Till end of February, 1994, the
Reserve Bank of India received 140 applications for setting up of new private sector
bank. However, only 19 applicants had fulfilled all formalities and applied in the
prescribed formats of the Reserve Bank, in principle, had given approval only to 10
applicants so far after processing their applications. These new banks popularly
known as "New Private SectorBanks". The name of these banks given as under:
 IndusInd Bank Ltd.
 ICICI Bank Ltd.
 Global Trust Bank Ltd.
 HDFC Bank Ltd.

 Centurian Bank Ltd.
 UTI Bank Ltd.
 IDBI Bank Ltd.
 Bank of Punjab Ltd.
 Kotak Mahindra Bank Ltd.
The Banking Companies (Acquisition and Transfer of Undertakings).
Amendment Act, 1944, amended the Banking Companies Act of 1970 and 1980
whereby 14 and 6 scheduled banks were nationalised respectively. This
amendment provides for partial privatisation of the public sector banks. (R.
Kapila& U. Kapila, 1997)
The Government of India, constituted another Committee under the chairmanship of
Shri M. Narasimham in April 1998to suggest measures for reforming the banking sector.
The report covered a wide range of issues like capital adequacy, bank management, bank
legislation, bank mergers etc. The principal recommendations are summarized below:
(i) Stronger Banking System: The Committee laid great emphasis on the need of a
stronger banking system particularly in the context of capital account convertibility which
necessarily involved huge flows of capital to and from the country, and required cautions
management of exchange rate and domestic liquidity. For this purpose the Committee had
recommended the merger of strong banks.
(ii) Narrow Banking: For the rehabilitation of weak banks with high NPA, the Committee
had suggested the concept of narrow banking ie.these banks should lodge their funds in
short-term risk-free assets. This implies that they should match their demand deposits by
safe liquid assets.
(iii) Small Local Banks: Along with its recommendation for 2 or 3 banks with global
orientation and 8-10 large national banks, the Committee suggested the establishment of
small local banks to serve the needs of a State or even a cluster of districts in respect of
agriculture, small industry and trade.
(iv) Capital Adequacy: To improve the strength and risk absorption capacity of banks the
Committee suggested the raising of their capital adequacy ratio. It further suggested the
establishment of an Asset Reconstruction Fund to take over the NPAs of the banks.
(v) Real Autonomy: The Committee has strongly pleaded for with-drawing
government ownership and control of banks and providing greater autonomy and
flexibility in the working of public sector banks. They suggested that the bank boards
should be made autonomous and responsible for enhancing the value of shareholders.
The RBI should perform only regulatory functions and not get into the day- to-day
management of the banks.
(vi) Review of Banking Laws: The Committee had stressed on an urgent review of all
banking laws and amendment of their provisions to bring in line with the current needs of
the banking industry.(Reserve Bank of India, 1999)
The Committee has also made recommendations for the computerisation.
professionalisation and depoliticization of bank boards, review of recruitment procedures,
training and remuneration policies etc.
The revised 2001 guidelines by and large were still cautious in nature. Large
industrial houses were not permitted to promote new banks. However, individual
companies, directly or indirectly connected with large industrial houses were permitted to
own 10 percent of the equity of a bank, but without any controlling interest.An NBFC
with good track records was considered eligible to convert into a bank, provided it was
not promoted by a large industrial house and satisfied the prescribed minimum capital
requirements, a triple A (AAA) or its equivalent, creditrating in the previous year, capital
adequacy of not less than 12 percent and net Non-Performing Assets (NPA) ratio of not
more than 5 percent.(Reserve Bank of India, 1999)
Since the year 2000, banking practices in India have undergone significant
transformations to keep up with the evolving financial landscape and technological
advancements. Here are some key aspects of modern banking practices in India during
this period:
a. Technology Adoption: Banks in India have embraced technology to improve
efficiency, convenience, and customer experience. The use of online banking,
mobile banking, and ATMs has become widespread, allowing customers to access
banking services 24/7 from anywhere.
b. Regulatory Changes: The Reserve Bank of India (RBI) has implemented various
regulatory changes to strengthen the banking sector and protect customers'
interests. Measures like Know Your Customer (KYC) norms, Anti-Money
Laundering (AML) regulations, and the introduction of the Insolvency and
Bankruptcy Code (IBC) have enhanced transparency and accountability.
c. Digital Lending: The emergence of financial technology (fintech) companies has
revolutionized lending practices. Online platforms and mobile apps offer quick and
hassle-free loans, peer-to-peer lending, and alternative credit scoring models,
increasing access to credit for individuals and businesses.
d. Open Banking: The concept of open banking has gained traction in recent years. It
allows third-party financial service providers to access customer data (with explicit
consent) and offer innovative services by leveraging APIs (Application
Programming Interfaces) provided by banks.(Reserve Bank of India, 2001)

As of March 31, 2009, the Indian banking system comprised 27 public sector
banks, 7 new private sector banks, 15 old private sector banks, 31 foreign banks, 86
Regional Rural Banks (RRBs), 4 Local Area Banks (LABs), 1,721 urban co-operative
banks, 31 state co-operative banks and 371 district central co-operative banks.(Reserve
The Union Finance Minister, in his budget speech for the year 2010-11 had
announced that ‘The Indian banking system has emerged unscathed from the crisis. We
need to ensure that the banking system grows in size and sophistication to meet the needs
of a modern economy. Besides, there is a need to extend the geographic coverage of
banks and improve access to banking services. In this context, I am happy to inform the
Honourable Members that the RBI is considering giving some additional banking licences
to private sector players. Non-Banking Financial Companies could also be considered, if
they meet the RBI’s eligibility criteria.’
Subsequently, in line with the above announcement, the Governor, Reserve Bank
of India indicated in the Annual Policy Statement for the year 2010-11 that the Reserve
Bank will prepare a discussion paper marshalling the international practices, the Indian
experience as well as the extant ownership and governance (O&G) guidelines and place it
on the Reserve Bank’s website by end-July 2010 for wider comments and feedback.
(Reserve Bank of India, 2011)
It is generally accepted that greater financial system depth, stability and soundness
contribute to economic growth. But beyond that, for growth to be truly inclusive requires
broadening and deepening the reach of banking. A wider distribution and access of
financial services helps both consumers and producers raise their welfare and
productivity. Such access is especially powerful for the poor as it provides them
opportunities to build savings, make investments, avail credit, and more important, insure
themselves against income shocks and emergencies.
Though the Indian financial system had made impressive strides in resource
mobilization, geographical and functional reach, financial viability, profitability and
competitiveness, vast segments of the population, especially the underprivileged sections
of the society, had still no access to formal banking services.
In 2016, the Indian government implemented demonetization, a bold move aimed
at curbing black money and promoting a digital economy. It led to a significant increase
in digital transactions and encouraged the adoption of cashless payment methods.(Yogesh
D., 2023)
The world has witnessed one of the worst economic and financial crises in the
year 2008-09 since the great depression of 1929. India too along with the whole world
was impacted by the crisis in terms of severe credit crunch, net negative inflows,
slowdown in exports, job losses, etc. During the time of the crisis, several stakeholders
like the central bank (RBI), the market regulator (SEBI), and the government played their
part well to reduce the impact of the crisis on India. The Reserve Bank of India (RBI)
handled the crisis through its monetary policies, the Securities and Exchange Board of
India (SEBI) through its control over stock exchanges, Government through its fiscal
policies. RBI through its monetary policies has changed the following variables as
follows during 2007 to 2009:
i) Bank Rate was left unchanged
ii) Reverse Repo Rate was changed 4 times
iii) Repo Rate was changed 11 times
iv) Cash Reserve Ratio was changed 17 times and

v) Statutory Liquidity Ratio was changed once.
RBI raised the Repo Rate and Cash Reserve Ratio during 2007 till late 2008 to
contain inflation. RBI decreased Reverse Repo Rate, Repo Rate, Cash Reserve Ratio and
Statutory Liquidity Ratio during late 2008 till 2009 to tackle the spillover effects of
financial shock from the global markets. RBI wanted to maintain comfortable rupee
liquidity, to augment forex liquidity and to arrest growth in moderation. If noticed, it can
be seen that Reverse Repo Rate and Repo Rate were changed very few times compared to
Cash Reserve Ratio though all of them signify either absorption or injection of liquidity.
That’s because changing Cash Reserve Ratio has immediate and fastest effect on either
absorption or injection of liquidity into the economy compared to Reverse Repo Rate or
Repo Rate thereby changing the course of action in the direction RBI wants. Finally,
changing Cash Reserve Ratio frequently helped in controlling the inflation as well as
increasing the demand in the domestic market. Government stimulated the economy
during the crisis through borrowings and large investments. The central government
launched two fiscal packages in December 2008 and January 2009. These fiscal stimulus
packages amounting to about 3% of GDP included public spending, capital expenditure,
infrastructure spending, cut in indirect taxes, additional support to exporters, etc. The
large domestic demand bolstered by the government consumption, provision for forex and
rupee liquidity coupled with sharp cuts in policy rates, a sound banking sector and a well
functioning financial markets helped mitigate the impact of the crisis on India. Financial
crisis taught that greed is not always good. Banks also learnt a lesson on to take
calculated risks and not play with other’s money. (J. C. Kumar & M. Kumar, 2011)
Mergers and Acquisitions:
 SBI merged with its associate bank State Bank of Saurashtra in 2008 and State Bank
of Indore in 2010.
 In 2017, The merger of the 5 remaining associate banks of SBI, (viz. State Bank of
Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of
Patiala, State Bank of Travancore); and the BharatiyaMahila Bank with the SBI was
proposed. On 15thFebruary 2017, the Union Cabinet approved the merger of five
associate banks with SBI. The merger went into effect from 1st April 2017. (Reserve
 On 17 September 2018, the Government of India proposed the amalgamation of Dena
Bank and Vijaya Bank with erstwhile Bank of Baroda. The Union Cabinet and the
boards of the banks approved with the merger on 2 January 2019.The amalgamation
became effective from 1 April 2019. (Reserve Bank of India, 2019)
 On 30 August 2019, Finance Minister announced that the Oriental Bank of Commerce
and United Bank of India would be merged with Punjab National Bank, making
Punjab National Bank the second largest PSB after SBI with assets of ₹17.95 lakh
crore and 11,437 branches. The Union Cabinet approved the merger on 4 March 2020.
The merge came into effect since 1st April 2020.(Reserve Bank of India, 2020)
 On 30 August 2019, Finance Minister also announced that Syndicate Bank would be
merged with Canara Bank. The Union Cabinet approved the merger on 4 March 2020.
The proposal created the fourth largest PSB trailing SBI, PNB, Band of Baroda with
assets of ₹15.20 lakh crore and 10,324 branches.(Reserve Bank of India, 2020)
 On 30 August 2019, Finance Minister announced that Andhra Bank and Corporation
Bank would be merged into Union Bank of India.The Union Cabinet approved the
merger on 4 March, and it was completed on 1 April 2020.The proposal made Union
Bank of India the fifth largest PSB with assets of ₹14.59 lakh crore and 9,609
branches.(Reserve Bank of India, 2020)
 On 30 August 2019, Finance Minister announced that Allahabad Bank would be
merged with Indian Bank. The Union Cabinet approved the merger on 4 March 2020.
Indian Bank assumed control of Allahabad Bank on 1 April 2020. The
proposalcreated the seventh largest PSB in the country with assets of ₹8.08 lakh
crore.(Reserve Bank of India, 2020)
In the year 2018, when the government was aiming for bank recapitalization, the
Punjab National Bank scam came as a huge blow to the entire banking sector. Rupees
12,700 crore scam involved at least six banks, raised doubts over the internal safety of
operations in financial firms. It may be noted that the PSBs lost at least Rs 227 billion to
bank frauds in the last five years from the date of scam. The magnitude of Punjab
National Bank scam was very exorbitant and it was happening for more than five years
undetected. On this, RBI released a Press Release stating,
“There have been reports in the media that in the wake of fraud involving a sum of
USD 1.77 billion that has surfaced in Punjab National Bank (PNB), the Reserve Bank of
India (RBI) has directed PNB to meet its commitments under the Letter of Undertaking
(LOU) to other banks. RBI denies having given any such instructions.
The fraud in PNB is a case of operational risk arising on account of delinquent
behaviour by one or more employees of the bank and failure of internal controls. RBI has
already undertaken a supervisory assessment of control systems in PNB and will take
appropriate supervisory action.”(Reserve Bank of India, 2018)
On 31st July 2019, the Reserve Bank of India has imposed monetary penalty on eleven
banks for non-compliance with certain provisions of it. Punjab National Bank was one of
it. This action was based on the deficiencies in regulatory compliance. This scam
increased the level of alertness in the Indian Banking System. Now the system is more
focused on changing the landscape of the financial system through the advanced
technologies.(Reserve Bank of India, 2020)
Innovation and Digital Transformation:If we look at the banking industry of the
past, one major drawback was the lack of technology in banking services. This often led
to failed/delayed transactions and longer turnaround times. The banking services
provided by new-age banks have improved tremendously over the last few decades.
Advancements in the field of technology have seen every sector upgrading itself with
various technological enhancements. It has made the processes faster and more
convenient for customers.
The authors R. V. Kulkarni & B. L. Desai, in the year 2004 mentioned thatthe first
ATM was launched in India in the year 1987 by the Central Bank of India in Mumbai.
This was a significant milestone in the Indian banking industry and paved the way for
the adoption of modern banking technologies in the country. ATMs have become
widespread across the country, providing customers with convenient access to cash
withdrawals, balance inquiries, and other services. The Reserve Bank has advised banks
to put in place a system of online alerts by June 30, 2011 to cardholders, for all types of
transactions, irrespective of the amount involved through various channels due to the
increased instances of fraudulent withdrawals at ATMs. Further, banks were also
advised to provide complaint templates at all ATM sites for lodging ATM-related
complaints. (R. V. Kulkarni & B. L. Desai, 2004),
The author S. B. Mittal in his study in 2012 mentioned that the earliest form of m-
banking was performed using SMS in the 1990s. However, In the year 2008, ICICI
Bank was the first bank in India to launch mobile banking with the use of smart phones.
Almost every bank has since followed suit. The proliferation of smartphones and mobile
internet has facilitated the growth of mobile banking in India. Mobile banking apps and
services have become popular, offering convenience and accessibility to customers for
banking on the go. Mobile banking applications have gained popularity, allowing
customers to perform banking transactions through their smartphones. Banks have
introduced mobile apps with features like balance inquiries, fund transfers, bill
payments, mobile recharges, and personalized offers. (S. B. Mittal, 2012)
The authorsS. Mittal & A. Guptamentioned that in the year 1998, Industrial Credit
and Investment Corporation of India (ICICI) was the first to use Internet banking in
India by introducing online banking services in branches. Its initiatives were followed by
HDFC Bank, IndusInd Bank and Citibank, who started provided online banking
facilities in 1999. The advent of the internet and increasing internet penetration in India
has led to the rise of internet banking services. Customers can perform various banking
transactions online, such as fund transfers, bill payments, and account management,
opening fixed deposits, and applying for loans online. Internet banking has made
banking services more convenient and reduced the need for physical visits to branches.
(S. Mittal & A. Gupta, 1998)
The rise of e-commerce has led to increased Card usage. Debit cards, credit cards,
and prepaid cards are widely accepted, providing customers with convenient payment
options both online and at point-of-sale terminals. The card payment system gained
momentum in the 2000s, with the introduction of new technologies and the growth of e-
commerce. In 2008, RBI launched the National Payments Corporation of India (NPCI),
which manages various payment systems in the country, including the card payment
system. The NPCI launched the RuPay card, a domestic card payment network that
competes with international card networks such as Visa and Mastercard. According to
the RBI, the total number of card transactions in India increased from 1.8 billion in
2015-16 to 4.4 billion in 2019-20, representing a growth of over 140%.(Reserve Bank of
India, 2020)
Core Banking Solutions (CBS)is a centralized banking system that enables banks
to provide a range of banking services to their customers through a single platform. CBS
provides a unified view of customer accounts and transactions, enabling banks to offer
seamless and fast banking services to their customers.RBI launched the Core Banking
Solution (CBS) project in 2004, with the objective of enabling banks to provide better
customer service and improve operational efficiency. The project aimed to bring all the
banks in India under a common technology platform by implementing CBS across all
branches of all banks in the country.The performance of CBS in India has been
impressive, with most banks in the country adopting the system and migrating their
operations to CBS. According to the Reserve Bank of India (RBI), as of March 2020,
98.2% of the total bank branches in India were under CBS, and 99.8% of the total
business of banks was transacted through CBS.(S. Mittal & A. Gupta, 2008)
Real-Time Gross Settlement (RTGS)In India, a payment mechanism called Real-
Time Gross Settlement (RTGS) enables instantaneous transfers of funds between banks.
The Reserve Bank of India (RBI) established RTGS in 2004 as a quick, safe, and
effective electronic method for transferring large amounts of money. Since RTGS
transactions are resolved individually and in real-time, money is sent practically
instantaneously. Additionally, RTGS is always open, which gives users a quick way to
make payments. Significant RTGS adoption has occurred in India, where the system is
now one of the most widely used payment methods for large-value
transactions.According to the Reserve Bank of India, the total value of RTGS
transactions in India increased from Rs. 1,00,000 crore in 2005-06 to Rs. 750 lakh crore
in 2019-20, representing a growth of over 7,400%.(Reserve Bank of India, 2022)

Net Electronic Fund Transfer (NEFT)is a payment system in India that facilitates
one-to-one funds transfers from one bank account to another. NEFT was introduced by
the RBI in the year 2005 as a safe, secure, and efficient way to transfer funds
electronically.NEFT transactions can be initiated online or through bank branches, and
funds are transferred in batches at specific times throughout the day. The system is
available 24/7, making it a convenient payment option for customers.The adoption of
NEFT in India has been significant, with the system becoming one of the most popular
payment modes in the country. According to the Reserve Bank of India, the total number
of NEFT transactions in India increased from 4.6 crore in 2006-07 to 32.8 crore in 2019-
20, representing a growth of over 600%.(Reserve Bank of India, 2022)
IMPSis a payment system in India that facilitates instant fund transfers between
bank accounts. IMPS was introduced by the National Payments Corporation of India
(NPCI) in 2010 as a safe, secure, and efficient way to transfer funds electronically.
IMPS transactions can be initiated 24/7 and can be done through mobile phones, internet
banking, or ATMs.According to the National Payments Corporation of India, the total
number of IMPS transactions in India increased from 3.6 crore in 2011-12 to 30.3 crore
in 2019-20, representing a growth of over 740%.(Reserve Bank of India, 2020)
The popularity of Mobile Wallets and payments apps has surged in India. The first
mobile wallet in India was launched in 2010 by a company called Paytm. Initially,
Paytm started as a mobile recharge and bill payment platform, but later it expanded its
services to include other digital payment options, such as mobile wallets.Apps like
Paytm, PhonePe, Google Pay, and BHIM have gained widespread acceptance, allowing
users to make payments, transfer money, and even pay utility bills using their
smartphones.According toRBI, the total number of mobile wallet transactions in India
increased from 99.3 crore in 2016-17 to 440.6 crore in 2019-20, representing a growth of
over 340%. Similarly, the total value of mobile wallet transactions increased from Rs.
53,200 crore in 2016-17 to Rs. 2,21,900 crore in 2019-20, representing a growth of over
315%.(R. K. Mittal & S. Dhingra, 2008)
Pradhan Mantri Jan DhanYojana (PMJDY)is a financial inclusion scheme
launched by the Indian government in August 2014. The scheme aims to provide access
to financial services such as banking, savings, and insurance to the unbanked and
underbanked population in India.The scheme has several objectives, including the
promotion of financial inclusion, providing easy access to credit, promoting savings, and
ensuring the flow of benefits under government schemes directly into the bank accounts
of beneficiaries.As of May 2021, over 43 crore bank accounts have been opened under
the scheme, with a total balance of over Rs. 1.4 lakh crore.(Shaktikanta Das, 2023)
Cloud Bankingis also known as banking-as-a-service (BaaS). One of the earliest
adopters of cloud banking in India was Axis Bank, which launched its cloud-based
mobile banking app in 2015.Cloud-based operating models help the banks to streamline
advancement and cut down the IT costs of software and hardware. Banks do not have to
buy the software, data, etc. but they can still interact with the marketplace changes on
the go. Since then, several other banks in India have launched cloud banking services,
including ICICI Bank, Yes Bank, and Federal Bank. These banks have partnered with
cloud service providers such as Amazon Web Services (AWS), Microsoft Azure, and
Google Cloud to deliver cloud-based banking services to customers.
The GovernorShaktikanta Das expressed that the introduction of UPI by the National
Payments Corporation of India (NPCI) revolutionized the payments landscape in India in
the year 2016. UPI enables instant and seamless fund transfers between bank accounts
using mobile phones, leading to a surge in digital transactions. It has emerged as the
most popular and preferred payment mode in India pioneering Person to Person (P2P) as
well as Person to Merchant (P2M) transactions in India accounting for 75 per cent of the
total digital payments. The volume of UPI transactions has increased multifold from 0.45
crore in January 2017 to 804 crore in January 2023. The value of UPI transactions has
increased from just ₹1,700 crore to ₹12.98 lakh crore during the same period. The
Digital Payments Awareness Week (DPAW) will further deepen the usage and footprint
of digital payments across the country.(Reserve Bank of India, 2023)
India has taken steps for internationalisation of payment systems and cross border
linkage of fast payment systems of India and Singapore i.e. UPI-PayNow. This linkage is
in addition to the QR code based and UPI enabled P2M payments already happening in
Bhutan, Singapore and UAE. Recently, India also enabled the visitors from G20 counties
to be onboarded to UPI without having a bank account in India. Through this initiative,
the G20 delegates had a first-hand experience of making merchant payments seamlessly
through the UPI, during their stay in India. (Shaktikanta Das, 2023)
The author S. R. Lohana mentioned that in 2016, RBI introduced the Aadhaar
Enabled Payment System (AEPS). The integration of the Aadhaar (unique
identification) system with banking services has simplified customer authentication and
KYC processes. Aadhaar-based authentication is a service offered by Indian banks that
allows customers to use their Aadhaar number to authenticate their identity for banking
transactions. To use it for banking services, a customer must first link their Aadhaar
number to their bank account. This can be done online or by visiting a bank branch.The
process involves the use of biometric data such as fingerprints or iris scans, as well as a
one-time password (OTP) sent to the customer's registered mobile number. It has several
benefits for customers and banks. For customers, it offers a more convenient and secure
way to access banking services, eliminating the need for physical documents or
signatures. For banks, it helps to streamline the banking process and reduce the risk of
fraud.AEPS processed over 2.3 billion transactions with a value of over INR 4.5 trillion
in the financial year 2020-21. (S. R. Lohana, 2016)
Payment BanksNewly created Payment Banks are intended to serve the under
banked and unbanked populations in particular by offering basic banking services. The
first payment bank to be licensed by the RBI to start operations in November 2016 was
Airtel Payments Bank. Subsequently, several more payment banks such as Jio Payments
Bank, India Post Payments Bank, Fino Payments Bank, and Paytm Payments Bank have
also been founded in India. They can provide services including remittance, mobile
payments, and online banking and can take deposits up to a total of Rs. 2 lakh per
customer. They are unable to offer loans or credit cards. There were six payment banks
in operation in India as of May 2023. (Reserve Bank of India, 2023)
Small Finance Banksaim to provide financial services to unorganized sectors,
including marginal and small farmers, micro and small businesses, and others. In 2017,
the first Small Finance Bank in India launched for business. In April 2016, Capital Small
Finance Bank opened for business as the first Small Finance Bank after receiving an
RBI license. Many other small finance banks have since been established in India,
including Equity as a Small Finance Bank, Ujjivan Small Finance Bank, AU Small
Finance Bank, ESAF Small Finance Bank, and Suryoday Small Finance Bank.A
minimum of 75% of their Adjusted Net Bank Credit (ANBC) must be lent to priority
sectors. For small business loans, the maximum loan amount is Rs. 25 lakh; for
microfinance loans, it is Rs. 1 lakh. There were twelve small finance banks in operation
in India as of December 2023.(Reserve Bank of India, 2023)

Digital-only banks, also known as neo banks, are banks that operate exclusively
online, with no physical branches or offices. These banks provide a range of banking
services, including savings accounts, loans, and credit cards, through mobile and web-
based apps. In 2017, India's first digital-only bank, DBS Bank India, was launched. DBS
Bank India is a subsidiary of DBS Bank, one of the largest banks in Asia, and offers a
range of banking services through its mobile app, including savings accounts, loans, and
credit cards.The adoption of digital-only banks is expected to continue to grow in the
coming years, driven by the growth of e-commerce, increasing smartphone penetration,
and the government's push for a cashless economy.(S. R. Lohana, 2020)
The author S. Chandramouliet. al. discussed in the year 2021 about theBlockchain
Technology. Itis a record-keeping technology that helps to keep customer bank details
secure. It is suitably customised and implemented by the banking sector and can deter
hackers from gaining confidential information. Data are stored in blocks and digitally
chained together. This high-tech security system is used by banks to manage and store
data in the form of digital ledgers. In 2017, the State Bank of India (SBI), the country's
largest public sector bank, announced its plans to implement blockchain technology for
streamlining its Know Your Customer (KYC) process and improving operational
efficiency.In the same year, the National Payments Corporation of India (NPCI) launched
a pilot project to test blockchain technology for various banking applications, including
digital identity management, secure document management, and transaction settlement.(S.
Chandramouli et. al., 2021)
The GovernorShaktikanta Das discussed thatin 2018, the RBI introduced the concept
of Internal Ombudsman or IO for banks which was subsequently extended to other
regulated entities. In essence, the IO is an independent apex level authority within the
regulated entity itself who reviews the proposed rejections of customer complaints before
the final decision is conveyed to the complainant. Additionally, the IOs are required to
analyse the pattern of complaints and suggest measures to address the root causes.
Regulated entities should strengthen and support their Internal Ombudsman mechanisms
so that most complaints are resolved by the regulated entity itself, obviating the need for
the customer to approach the RBI Ombudsman. (Shaktikanta Das, 2018)
The year 2021 can be considered The Year of Open Banking.Open banking refers to
the practice of sharing financial information electronically, securely, and with the consent
of customers, among various financial institutions and third-party service providers. It
aims to foster innovation, competition, and collaboration in the banking sector by
enabling the sharing of customer data and allowing third-party developers to build
applications and services around it. This movement was visible across government
initiatives. There is distinct movement on hiring as well as training the resources for this
service. Open Banking is providing newer opportunities to develop business models like
B2B2C or B2B2B or B+B2C and other combinations instead of straight business models
like B2C or B2B.(Shaktikanta Das, 2022)
To augment the customer base, the banking sector needs to keep upgrading its
services with high-end security. The implementation of Artificial Intelligence and
Machine Learninghas helped banks to administer high-speed data to get valuable
information regarding their customers. The importance of AI ranked high after the
shockwave of the COVID-19 pandemic hit the world. The banking industry is applying
AI in various ways such as;
Many Indian banks have implemented AI-powered Chatbotsand Virtual
Assistantsto provide customer support, address queries, and offer personalized
recommendations. These virtual assistants are capable of understanding natural language

processing (NLP) and can assist customers with tasks like balance inquiries, transaction
history, and account-related information.
Fraud Detection and SecurityBanks in India utilize AI-based Fraud Detection and
Security systems to detect and stop fraudulent activity. Banks can detect and stop
fraudulent transactions in real time with the use of machine learning algorithms, which
analyze vast amounts of transaction data to find patterns and anomalies. In order to
defend customer data and systems from cyber threats, AI algorithms also aid in
improving cyber security measures.
AI technologies, such as Robotic Process Automation (RPA), are used to automate
repetitive and rule-based tasks within banking operations. This reduces manual effort,
improves efficiency, and minimizes errors. AI-powered automation is applied to tasks
like data entry, document processing, and compliance checks, freeing up human
resources to focus on more complex and value-added activities.
AI-powered tools are employed in wealth management to provide personalized
investment advice, portfolio management, and financial planning. By analysing
customer goals, risk profiles, and market data, AI algorithms can offer tailored
investment recommendations, asset allocation strategies, and real-time market insights.
AI technologies also include voice and image recognition, which are being used by
banks in India to enhance security and authentication processes. Voice biometrics enable
customers to securely access their accounts through voice commands, while image
recognition helps in verifying Identity documents during the account opening and KYC
processes.
AI is also utilized to assist banks in complying with regulatory requirements. AI
algorithms can analyse vast amounts of data, such as transaction records and customer
interactions, to identify potential compliance risks and ensure adherence to anti-money
laundering (AML) and know your customer (KYC) regulations.
Indian Scheduled Joint Stock Banks are defined as banks that are included in the
RBI Act's second schedule and that are registered under the Indian Companies Act.
Commercial banks, state cooperative banks, regional rural banks, and urban cooperative
banks make up Indian Joint Banks. Public sector banks (PSBs), private sector banks
(PVBs), foreign banks (FBs), and regional rural banks (RRBs) are examples of
commercial banks in India. (S. Chandramouli and colleagues, 2021).
Table 2.3:
Bank Group-wise Deposits of Scheduled Commercial Banks in June 2021

(No. of accounts in thousands and amount in (Rupees) in Crores)
Bank Groups Deposits
No. of Accounts % Amount %
Public Sector Banks 1468935 69.49 9459987 61.26
Foreign Banks 9681 0.46 760932 4.93
Regional Rural Banks 277612 13.13 510898 3.31
Private Sector Banks 335262 15.86 4623903 29.94
Small Finance Banks 22355 1.06 87774 0.56
Total 2113845 100 15443494 100
Source: Compiled from RBI Basic Statistical Return (BSR)
Out of all these classifications, this study is based on the comparison of only two
types of banks i.e. Public Sector Banks and Private Sector Banks.
Public Sector Banks:
A Public Sector Bank is a government owned bank with majority of stakeheld by
theGovernment. The Indian Public Sector Banks consist of State Bank ofIndia (SBI), 11
Nationalised Banks and 43 Regional Rural Banks operating as on June2021. (RBI’s
Datawarehouse, 2021)
Table 2.4:
Number of functioning offices of Public Sector Banks in June 2021
Name Of Bank Rural Semi- Urban Metro- Total
Urban Politian
State Bank of India 7961 7131 5256 4521 24869
Bank of Baroda 2848 2085 1578 1937 8448
Bank of India 1839 1493 921 1105 5358
Bank of Maharashtra 612 464 392 532 2000
Canara Bank 3057 2900 2204 2236 10397
Central Bank of India 1605 1341 875 978 4799
Indian Bank 1942 1551 1295 1301 6089
Indian Overseas Bank 903 962 676 738 3279
Punjab and Sind Bank 570 281 373 355 1579
Punjab National Bank 3883 2727 2788 2432 11380
UCO Bank 1074 819 631 596 3120

Union Bank of India 2557 2752 2083 2288 9680
Source: Time series Publication of RBI, June 2021
Private Sector Banks:
Private sector banks in India refer to banking institutions that are owned and operated
by private individuals or corporations, as opposed to government-owned banks.Private sector
banks in India have been at the forefront of adopting new technologies and innovative
banking practices. They have invested heavily in modernizing their infrastructure, digital
banking platforms, and customer-centric services. These banks in India have shown
remarkable growth and profitability over the years.
Table 2.5:
Number of functioning offices of Private Sector Banks in June 2021
Name of Bank Banking Region Total
Rural Semi- Urban Metro-

Urban Politian
Axis Bank Ltd. 758 1410 1111 1488 4767
Bandhan Bank Ltd. 1979 2080 1007 518 5584
City Union Bank Ltd. 117 271 148 181 717
CSB Bank Ltd. 41 268 122 118 549
DCB Bank Ltd. 67 93 91 123 374
Dhanlaxmi Bank Ltd. 19 106 74 70 269
Federal Bank Ltd. 162 693 240 229 1324
HDFC Bank Ltd. 1054 1761 1196 1710 5721
ICICI Bank Ltd. 1099 1538 1061 1549 5247
IDBI Bank Ltd. 406 587 545 570 2108
IDFC First Bank Ltd. 49 161 230 371 811
Indusind Bank Ltd. 290 431 525 663 1909
Jammu & Kashmir Bank Ltd. 505 182 111 180 978
Karnataka Bank Ltd. 193 199 240 260 892
KarurVysya Bank Ltd. 133 303 166 260 862
Kotak Mahindra Bank Ltd. 256 293 364 835 1748
Nainital Bank Ltd. 52 34 47 33 166
RBL Bank Ltd. 63 74 66 250 453
South Indian Bank Ltd. 110 465 179 201 955
Tamilnad Mercantile Bank 106 248 88 86 528

Ltd.
Yes Bank Ltd. 148 303 236 394 1081
Total 7607 11500 7847 10089 37043
Source: Time series Publication of RBI, June 2021
2.3 IMPORTANT LITERATURE REVIEWS ON BANKING:
The author named Bhattacharya studied in the year 1997 about the impact of the limited
liberalization initiatedbefore the deregulations of the 90’s on the performance of the
different categories ofbanks. His study covered 70 banks in the period 1986-91. He has
constructed one
grandfrontierfortheentireperiodandmeasuredtechnicalefficiencyamongthethreecategories
with foreign and private banks having much lower efficiencies. The mainresults accord with
the general perception that in the nationalized era, public
sectorbanksweresuccessfulinachievingtheirprincipalobjectivesofdepositandloanexpansion.
(Bhattacharya, 1997)
The author named Gaganjot Singh, in the year 1998in his study “New innovations in
banking industry – a study ofnewprivate sector banks” viewed that the new private sector
banks in India are usingbetter technology and are offering better services to the customers.
The new privatebanks have emerged as a model to the banking industry in terms of service
levels,ambience, technology etc. As the public sector banks have already established a
hugecustomerbase,theybecomecomplacentandareslowtobecomecustomerfriendly.
Theyarealsolessinnovativeintheuseoftechnology-
assistedcustomerservice.Becauseoftheirhugecustomerbasetheyfeelthattheycanwithstandcom
petitionsfromnew generation banks.(Gaganjot Singh, 1998)
The authors Anthony T. Allred & H. Lon Addamsindicated in their articlethat
neitherbanksnorcreditunionsdoagoodjobofsurveyingcustomerneedsorretainingcustomers, in
the year 2000. Other resultsindicate thatfifty percentof
totalrespondentssurveyedreportedthattheyhadstoppedusingafinancialserviceproviderbecause
ofpoorserviceperformance. The vast majority of that group reported that their decision was
madebecause abankfailed toprovideadequateservice. (Anthony T. Allred & H. Lon Addams,
2000)
In the year 2021, the author Mini Joseph’sview indicated that new generation banks
have created a spirit ofcompetitioninthebankingindustry by fully
utilizingthefacilitiesandamenitiesavailable from technology and computerization, and by
accepting customer satisfaction as the core aspect. For preventing the erosion in the market
share of old private
sectorbanksandpublicsectorbanks,theyarealsoprovidingqualityservicenowinacompetitive
spirit.(Mini Joseph’s, 2001)
The author P.D.Jeromi,whostudied“ThetrendsandissuesofbankcreditinKerala” in the year
2002, found that the absolute rate of growth of credit was reasonably good. But in relation to
deposits,per capita credit, credit per account, disbursement by all India Financial Institutions
thelevel of credit was lower. He also observed that more attention should be given
tomobilizationofdepositsthan to expansion of credit.(P.D.Jeromi, 2002)
The author SujitChakravarti, in the year 2003,said that
creditcardsprovidebenefitstoconsumersandmerchants which are not provided by other

payment instruments as evidenced by their explosivegrowth in the number and value of
transactions over the last 20 years. He further added that recently,
creditcardnetworkshavecomeunderscrutinyfromregulatorsandantitrustauthoritiesaroundthew
orld. The costs andbenefitsofcreditcardstonetworkparticipantsarediscussed. Focusing on
interrelated bilateral transactions, several theoretical models have
beenconstructedtostudytheimplicationsofseveralbusinesspracticesofcreditcardnetworks. The
results and implications of these economic models along with futureresearchtopics
arediscussed.(SujitChakravarti, 2003)
In the year 2004, the author SinghS.empiricallystudied
theappraisalofcustomerservicesofPSBsinterms of level of customer service and satisfaction
determined by brand, location and
design,varietyofservices,ratesandchanges,systemsandprocedures etc.Thestudyconcludesthat
staff behavior is very polite and services are provided even in the late hours. Studyreveals
that 62 percent respondents answer that immediate credit is not given
foroutstationcheques,93percentfeelthattheydonotholdperiodicalmeetingsandservicesare not
provided according to the given schedules. It concludes that services of privatesectorbanks
arebetter thanthe services of public sector banks.(SinghS. ,2004)
The authors Velouston&Cleopatra, in the year 2004,
intheirstudyanalysedtherelativeroleofcertaindrivers of bank loyalty. Their study shows the
links between image, perceived qualitysatisfaction, commitment and loyalty in Greek retail
banking. The result of the study exposed that
theimagehasapositiveimpactonperceivedqualityandsatisfaction.Thekeyfactorthatled toloyalty
isthepersonalization in providingservicestocustomerswhichhelptoincreasecustomer
satisfaction.(Velouston&Cleopatra, 2004)
The authors Rishi &Saxenastudied on the topic: technological Innovations in Indian

Banking Industry: The late bloomer, in the year 2004. This article charted out the path of
technological innovation post-economic liberalization. It was worthwhile to note that the
late Rajiv Gandhi’s encouragement to IT in the late 1980s was very controversial because
computers were seen as a substitute for manpower and viewed as an icon for ‘job loss’. A
decade and a half later, India has assumed the ‘lead’ in developing software in the world. At
a time when India was synonymous with the ‘IT’ revolution of the early twenty-first
century, it was hard to see how banks could resist adopting technology in their day-to-day
operations for long. They highlighted that in the early twenty-first century, the Indian
banking system was in the midst of a technological revolution. Public and private banks
both had realized that technology alone could enable them to trim costs, achieve efficiency
and survive in a highly competitive environment.(Rishi & Saxena, 2004)
The author Ramola,in the year 2005, in his article stated that Indian banking industry
can reach internationallevel only through the growth of the retail banking. For the growth of
retail banking,innovativeproductswhichsatisfy
theneedsoftheindividualsarerequired.Suchproductscanbe
developedthroughmarketresearch.Besides,new regulationsarerequiredto reduceNPA in retail
sector.(Ramola, 2005)
Kapadia conducted a Comparative Study of Customer Satisfaction towards Banking
Services provided by Public Sector Banks and Private Sector Banks in South Mumbai, in the
year 2005. The objectives of the study were to analyze level of customer satisfaction with
respect to various services provided by banks and to compare this level between public and
private sector banks. The study is conducted by using the list of service attributes based on
SERVQUAL methods. Convenient Sampling technique was adopted. She designed
questionnaire based on 22 parameters. She found that most of the customers felt that
employees of private sector banks are very keen in satisfying their customers. On the other
hand, employees of public sector banks are least bothered. She also concluded that private
sector banks take due consideration about customer convenience and are ready to cope up
with their working hours. (Kapadia, 2005)
In the year 2005, the author RudraSarma studiedon “The cost and profit efficiency of
Indianbanksduring1986-2003”.Duringthisperiodthecostefficiencyof thebanksimprovedbut
the profit efficiency decreased. Compared to foreign banks, domestic banks are found to be
more efficient in terms of cost and profit.(RudraSarma, 2005)
The authors Vanniarajan. T. and Vikkraman P.focused on the link between customers’
satisfaction and organizational performance. In the year 2006, the study identified the
positive impact of customer satisfaction on service quality of banks resulting in its net profit.
The significant impact on net profit was created by the customers’ satisfaction on the service
quality factors, namely, Empathy, Assurance and Tangibles. The study suggested that the
suitable strategies to increase the profit among the banks were creating, maintaining and
enhancing appropriate service quality to the customers.(Vanniarajan. T. and Vikkraman P.,
2006)
The focus of DhandapaniAlagiri, in his article “Retail banking: challenges” was onthe
retail banking in India with increased consumer spending and increased challengesin the
form of competition and technology up-gradation. He concluded that the
mostimportantissuesforthenewgenerationcustomers were productinnovationandcompetitive
packaging services.Retailbankingincreasedtheuseofthemobilephones and banking facilities
for quick service. As a result, the security and
confidentialityhavebecomeverydifficulttomaintain.Thishasbecomeamajorproblemforthebank
s in India.
Anotherresultofthestudyisthatcreditdeliverymechanismhasbeenimprovedconsiderablywith
theadvent of technologicaladvances.(DhandapaniAlagiri, 2007)

The authors Molinaet. al.,have studied on “The impactof relational benefits on customer
satisfaction in Spanish retail banking”.It
isanempiricalstudyusingasampleofcustomersregardingtherelationshipbetweenrelationalbenef
itsandcustomersatisfaction.Their study showsthatconfidencebenefitshaveadirect,
positiveeffecton thesatisfaction levelofcustomers withtheir bank.(Molina et. al., 2007)
In the year 2008, the author
UppalR.K,statedthatfinancialsectorreformsinIndia,ofwhichbankingsectorreformsconstituteda
nintegralpart,stressed liberalization ofmarkets, privatization of ownership and globalisation
of the economy. Retail banking is the complete spectrumof the consumer’s evolving needs
and requirements including payment of utility bills,electricity, telephone mobile phone bills
insurance premiums on due dated, remittanceof funds, demating of shares, bonds,
debentures and mutual funds, payment of
creditcardsbills,filingofincometaxreturnsandpaymentofincometaxreturnsandbanassuranceetc
.(UppalR.K, 2008)
In the year 2008, the authors Kumarand Rama,analysed that retail banking is the
innovation of 21stcentury. India has experienced a rapid growth in retail banking. Retail
banking is
abankingservicethatisgearedprimarilytowardsindividualcustomers.Itfocusesstrictlyonconsum
ermarkets.Retailbankingisamass-
marketbankingwhereindividualcustomersuselocalbranchesoflargercommercialbanks.Theserv
icesofferedbyretailbanking includes
savingandcheckingaccounts,mortgages,personalloans,debitcards,creditcardsetc.itstakecareoft
hediversebankingproductsandservicestoindividualscustomers. It provides banking products
and services to individuals. Retail bankingcontains features like multiple products, channels
and customer groups. Most of theIndian banks have been retail banks in their business
composition. Retail banking inIndiaisgrowingand thesame expectedin future. (Kumar and
Rama, 2008)
In the year 2009, the authors
KanningandBergmann,studiedthe“Factorsaffectingcustomersatisfactioninthe German retail
banking sector”. By applying the field study method, they identifiedthe factors affecting
customer satisfaction. They identify Performance of banks and fulfillment
ofcustomerexpectationsasthemajorfactorswhichaffectcustomersatisfaction.
(KanningandBergmann, 2009)
The authors Malhotra & Singhstudied the impact of internet banking on bank’s
performance: The Indian experience, in the year 2009. The objective of the study was to
understand that how differently internet banks were operating as compare to non-internet
banks. The study was done in 2006 and survey was taken place of 85 Scheduled
Commercial Websites. As per their study, that time only 57% of Indian Commercial Banks
were providing internet banking services. The result showed that banks which were large in
operations, earning goof profit and had better operating efficiency ratio were leading in
providing internet banking service. (Malhotra & Singh, 2009)
In 2010, the authors A. Solomon&M. Alhassan,said thatover the time, consumers
became dependent on and trust the Automatic Teller Machine (ATM)
toconvenientlymeettheirbankingneeds.Butinrecenttimetherehavebeenaproliferation of ATM
frauds in the country even and across the globe. Managing the risk
associatedwithATMfraudaswellasdiminishingitsimpactisanimportantissuethatfacefinancialin
stitutionsasfraudtechniqueshavebecomemoreadvancedwithincreasedoccurrences. The ATM
is only one of many Electronic Funds Transfer (EFT) devicesthat are vulnerable to fraud
attacks. This paper carried out an empirical research toanalyse the cases of ATM usage and
fraud occurrences within some banks in

Minna.TheresearchidentifiesthecommonATMfraud,how,whereandwhenthesefraudsareperpet
uatedandthenproffersecurityrecommendationthatshouldbeadheredtobyboththe banks as
financial institutions and the ATM users in order to eliminate or reduce ittothebarest
minimum.(A. Solomon and M. Alhassan,2010)
The author Dangolani, in the year 2011, explored the Impact of Information Technology
in Banking System (A Case Study in Bank Keshavarzi IRAN). The study brought to light
the fact that IT has been of great impact on bank Keshavarzi Iran, Golestan province. The
findings both from the primary and secondary research revealed that IT lead to saving the
time of the customers and the employees, facilitating the network transactions and cutting
down the expenses. The researcher concluded that “We cannot deny that the advancement of
technology was a necessity of the current era. Businesses need to adopt and embrace new
technologies to provide excellent business operation and services to their clients. The bank
industry is not an exception with regards to this adaptation. So, it is worth suggesting that
the banking industry needs to spend more on IT and better apply IT to improve its
operations, customer services and products. Banks should devote more resources to
development of secure IT systems, services and products.”(Dangolani, 2011)
The author Revathy, in the year 2012, in her article viewed that retail banking has
greater scope of
generatingprofitthanthetraditionalbanking.Bankshaveidentifiedthisandareadoptingadifferenta
pproachindesigningtheretailbankingproductsandservicestoholdthemarketshare.(Revathy,
2012)
In the year 2012, the authorsNirmaljeet&Prabhjotanalyzed the topic “Customer
Satisfaction: A Comparative analysis of Public and Private Sector Banks in India”. The
current research paper attempts to make a comparative analysis of level of customer
satisfaction towards services provided by public and private sector banks. The main
objectives of the study were to examine the expectations and the level of satisfaction of the
customers towards the services rendered by private and public sector banks as well as to
study the preferences and priorities towards types of services provide by the private and
public sector banks. The study was conducted in Chandigarh city. A sample of 160
customers has been selected using convenient sampling method through questionnaire. The
researchers covered customers from six banks, three each from private sector and public
sector banks. Under Public sector banks State Bank of India, Punjab National Bank and
Oriental Bank of Commerce were selected and HDFC, ICICI and Axis Bank were selected
from Private Sector Banks. The statistical tests were conducted at 5% and 1% level. They
concluded that private sector banks are more preferred by majority of the customer as they
emphasize more upon quality of relationship building with their clients and better equipped
with modern infrastructure as compared to public sector banks.(Nirmaljeet & Prabhjot,
2012)
The author ManjushaGoelstudied on the impact of Technology on Banking Sector in
India, in the year 2012. Technology had changed the way people obtain financial services.
She found that technological advancement in banking Sector has led to convenience, speedy
transactions, time saving and cheaper methods of conducting banking. Most of the people
gradually shifted from traditional methods to modern methods for utilizing financial services
such as the change from checks to debit/credit cards and automatic payment systems.
Technology has enabled banking to transform the whole system from bulk paper and waste
to paperless operations. The technology evolved telephone banking, credit cards, debit
cards, electronic money, automatic teller machines etc. Security has changed over many
years through the advancement of technology. (Manjusha Goel, 2012)
The author Yogesh studied on Banking Sector – Financial Analysis during Post Reform
Era, in the year 2013. The aim was to review the performance of banking sector in post
reform. The analysis is done for the time period of 1994 to 2005. For this purpose he
categorized banks into four categories i.e. 1) Foreign Sector Banks, 2) Nationalized Banks,
3) Private Sector Banks, 4) SBI and Associates. Comparison of all these four categories is
done on the basis of four key indicators of financial performance i.e. Capital Asset Risk
Weighted Ratio, Return on Investment, Business per Employee and Net Profitability Ratio.
He found that the entry of the foreign banks and private banks had shaken up public sector
banks for competition. The process of strengthening the banking system had to be the
continuous one. She also said that the changing financial reform is brining India closer to
global standard. Further, it is a long way to go to catch up with their counter parts.(Yogesh,
2013)
The author Doddaraju, in the year 2013, studied on Customer Satisfaction towards
Public and Private Sector Banking Services (with special reference to Anantapur district of
Andhra Pradesh). When the study was conducted in 2013, there were only 45 branches of
SBI and 32 branches of Syndicate bank of Public Sector Bank. As far as private sector is
concerned, there were only 9 branches of ICICI and 7 branches of HDFC in Anantapur
district. This showed that private sector has lesser public deposits and accounts of people
than public sector banks. The aim of the study was to know the service quality dimensions
of the banks that which were performing well and which needed to be improved. To fulfill
the objective 300 customers were selected as samples unit. He concluded that the level of
customer satisfaction with regard to the courtesy shown by bank staff was very low. He
suggested that special attention needs to be given to “Human Resource Development” by
giving timely training to the employees. (Doddaraju, 2013)
In the year 2014, the authors Gokilamani& Natarajan,in their study opined that
customers of Indiancommercial banks are positively responding to retail banking. It is

important for banksto focus on service quality for strengthening their competitive edge and
to allocate thelimited resources to serve the personal banking division. They further views
that
thesuccessofaretailbankwilldependonproductinnovation,technologicaldevelopmentsandstrate
gies to retain the retail customers.(Gokilamani& Natarajan, 2014)
The authors Mehta & Malhotraconducted the empirical analysis of Non-Performing
Assets related to Private Banks of India, in the year 2014. The objectives of the study were
to analyze and study the movement of non-performing assets during 2004-2012, to relate the
effect of non-performing assets on the profitability position of private sector banks in India
and to see the effect of priority sector lending on total NPAs of Public sector Banks.
Table 2.6:
Private Banks’ Gross NPA’s to Total Advances
(Rs. in Crores)
Year Gross Adv. Gross NPAs (Amt.) Percent to Gross
Adv.
2004-05 1,97,832 8,782 4.44
2005-06 3,17,690 7,811 2.46
2006-07 4,20,145 9,256 2.2
2007-08 5,25,845 12,983 2.47
The researchers were found that NPA was a major threat to Indian Banks. Continuous
progress was found to recover NPAs showed by NPA indicators. It was caused by high
pressure of Recession Faced by Indian Banks. The profitability of the private banks to a
large extent was dependent on NPAs. The result showed the significant impact of priority
sector lending on gross NPA of private Sector banks.(Mehta & Malhotra, 2014)
The authors P. Singh & Deepak Kumarstudied the impact of internet banking on
customers. According to them, there were primary six drivers of Internet Banking i.e.
improves customers’ access, facilitate the offerings of extra services, increase in customer
loyalty, attract new customers, provide services offered by competitors and reduce customer
attrition. They presented internet usage and population statistics in India which is as follows:
Table 2.7:
Internet usage and Population Statistics in India
Year Users Population %
2004 1,400,000 1,094,870,677 0.1 %
2004 2,800,000 1,094,870,677 0.3 %
2005 5,500,000 1,094,870,677 0.5 %
2006 7,000,000 1,094,870,677 0.7 %
2007 16,500,000 1,094,870,677 1.6 %
2008 22,500,000 1,094,870,677 2.1 %
2009 39,200,000 1,094,870,677 3.6 %
2010 50,600,000 1,112,225,812 4.5 %
They found that 55% of the respondents were using online banking. Out of which 37%
consumers use it frequently. They also found that 50% users strongly agree and 20% agree
that computer literacy is a prerequisite for internet banking. They concluded that many banks
had trouble in fully integrating their internet banking platforms with the rest of their
operations. A standard interface was the need of the period.(P. Singh & Deepak Kumar,
2014)
In the year 2015, the author Jeffrey Ejarrete,said in his study that the growth in
commercial and banking services on-line will grow as long as the hardware producers
innovate with new faster and easy

touseproducts.Thepitfallsincludeattacksbysavageinterventionistswhoattempttostealinformati
on and prevent end-users from employing the internet for purposes with
goodintentions.Achallengeismadetosoftwareandhardwareproducerstousemodernmethodsand
techniquestopredictwhereproblemsexistininternetbankingandcommerce.Serious solutions
arenecessary.(Jeffrey Ejarrete, 2015)
In the year 2015, the authors Velmurugan&Vanithaanalyzed Customer Satisfaction
of Public Sector banks. The aim of the study was to ascertain the factors that were
associated with Customer Satisfaction. The study was confined to Kanchipuram District.
300 responses were collected by the researchers for making an analysis by use of Chi-
Sqaure test. They concluded that customer satisfaction has been associated with Area of
Residence, Gender, Educational Qualification, Family Income, Duration of Holding
Accounts and Perception on Service Quality. They further said that Public Sector Banks had
to take necessary steps to increase their customer satisfaction by introducing new products
and services similar to products and services offered in Private and Foreign banks. Further,
the work-culture in Public Sector Banks had to be fine-tuned to meet the competition from
Private and Foreign Banks.(Velmurugan & Vanitha, 2015)
In the year 2016, the authors NishaS.&Rupinderdeep K.,in their paper discussed that
the m-
bankingisfastgrowingwithitsmultitudefeaturesofferedwithmobileappsandinternetbanking.
Indian Banking Association is urged to heavily invest in technologies that canevolve and
protect against future threats, as well as tackle current pressures frommalwareand social
engineering.(Nisha S. &Rupinderdeep K., 2016)
In the year 2016, the authors P. M. D. Kumar &Sriramstudied Customer Satisfaction
on E-Banking Services Quality – An Analytical Study on Banks in Oman. The study was
done by collecting primary data from 220 customers in Sultanate of Oman. They prepared
the questionnaire in English as well as Arabic languages and considered reliability,
facilities, orientation, easiness, provisions, security and web design as independent
variables. As per their findings, Easiness, design and orientation has high impact on
Customer Satisfaction on E-Banking services provided by banks in Oman.(P. M. D. Kumar
& Sriram, 2016)
The author Melnicstudied on Techniques for Measuring Customers’ Satisfaction in
Banks., in the year 2016. This study is based on secondary data. The techniques used by
banks for identifying level of customer satisfaction are discussed in detail such as
SERVQUAL, Net Promoter Score (NPS) and American Satisfaction Index. He also
discussed the six levels of service i.e. criminal, basic, expected, desired, surprising and
unbelievable. He concluded that winning banks improve value by adopting strategies such
as reducing the rate of customer defection, increasing the longevity of the customer
relationship, enhancing the potential of each customer through Share of wallet, cross selling
and upselling, making low profit customers more profitable or terminating them, focusing
disproportionate effort on high-profit customers. (Melnic, 2016)
The authors Minh &Huustudied on The Relationship between Service Quality, Customer
Satisfaction and Customer Loyalty: An Investigation in Vietnamese Retail Banking Sector.
As per the study Vietnamese was under transformation from a state-controlled economy to
the market driven economy over 20 years. In Vietnamese, Banking Sector is considered as
one of the important area for investment. Therefore, stiff competition is found amongst banks
in terms of prices of services or rate of interest. They concluded that the firm should follow
the customer-oriented strategy to cope up with the challenges in business which can improve
the customer retention and thereby help to reduce the cost of marketing. The study ensures
the link between excellent business processes that result in high service quality.(Minh & Huu,
2016)
The authors Jayakkodi&Rengaajanexplored the impact of non-performing assets on return on
assets of public and private sector banks in India. The aims of the study were to analysed the
trend in NPA ratio of select Public and Private Sector Banks as well as to study the
relationship between the Gross NPA and profitability measure (ROA) of select Public and
Private Sector Banks. For the purpose of study, the researcher has selected four major public
and four major private sector banks in India. The selected banks were as under: Public Sector
Banks: State Bank of India, Punjab National Bank, Bank of Baroda and Bank of India.
Private Sector Banks: ICICI Bank, HDFC Bank, Axis Bank and Federal Bank. The study was
done on the basis of data for the period of 5 years from 2010-11 to 2014-15. They concluded
that the extent of NPAs is comparatively higher in public sectors banks than private sector
banks. Because the private sector banks have a secured loan policy as compared to public
sector banks. Public Sector Banks are subjected to provide more loans to priority sector,
which results in higher non-performing assets.
In the year 2016, the author Lenkareviewed about Job Satisfaction among Employees in
Banking Sector. Job satisfaction is the mental feeling of favorableness which an individual
has about his job. The aim of the study was to give overview of impact of various factors on
customer satisfaction. These factors are mainly personal, organizational, social and
environmental factors. According to her, job satisfaction of employees can be influenced by a
number of factors, but an association of socio-personal factors with job satisfaction which is
concerned with age and income were found to be positively and considerably correlated with
job satisfaction specifically in a bank.(Lenka, 2016)

The authors Charan et.al. explored about the frauds in Indian Banking Industry. The
main objectives were to understand and analyze the underlying causes contributing to
increasing trend in frauds committed in Indian banking sector; as well as to suggest
appropriate and suitable measures that could help the system in addressing those issues. They
mentioned that before 3 years of this study public sector banks (PSBs) in India had lost a total
of Rs. 22,743 crore, on account of various banking frauds. The credibility of third parties
such as auditing firms and credit rating agencies is also questioned in the study and is
believed to be a significant contributor amongst other causes, such as oversight by banks and
inadequate diligence. According to them, there was lack of competent auditors due to reasons
such as staffing of auditor, poor training of auditors, negligence in paying attention to early
warning signals, weaker enforcement of laws in our country etc. They observed that Public
Sector Banks were far better than Private Sector Banks in terms of total number of bank
frauds. However, the total amount involved was much higher in PSBs as compared to the
private sector. They concluded that “frauds might be primarily due to lack of adequate
supervision of top management, faulty incentive mechanism in place for employees;
collusion between the staff, corporate borrowers and third party agencies; weak regulatory
system; lack of appropriate tools and technologies in place to detect early warning signals of
a fraud; lack of awareness of bank employees and customers; and lack of coordination among
different banks across India and abroad. The delayed in legal procedures for reporting, and
various loopholes in system had been considered some of the major reasons of frauds and
NPAs.” They made few recommendations such as Independent specialized cadre with a pool
of commercial bankers, RBI and CBI officials, knowing the vendor and the customer, Strong
Internal Rating agencies, Use of latest technology, Monitoring outlier movement at regional
level, Strong punitive measures for third parties and Strong laws to prevent fraudulent
financial reporting.(Charan et al., 2016)

The authors Prasadh& Sureshstudied in the year 2017, Customer Satisfaction Index as a
Performance Evaluation Metric: A study on Indian E-Banking Industry. As per the study, a
true and fair financial health of the organization can be measured by performance
evaluation. The satisfaction level of customers can be proved by the key indicators such as
purchase behavior, customer retention, revenue growth and financial performance. Their
objective of the study was to apply Customer Satisfaction Index as a performance evaluation
metric and further validate by using the SEM technique. Convenient Sampling technique
was used and 167 valid responses were obtained. They concluded that customer loyalty was
the most important positive consequence of customer satisfaction and the aggregate CSI
score for the Indian e-banking is lower as compare to the developed countries.(Prasadh &
Suresh, 2017)
The authors Mohopatraet. al. conducted demographic study on Customer Satisfaction
on Indian Banking Products in City Life. The objectives were to study the customers’ opinion
on satisfaction towards services provided by Indian Banks and to study the improvement
desired by customers to be brought in for the development of banking services. The primary
data was collected though structured questionnaire from cities of Bhubaneswar, Cuttack and
Puri of Odisha. ANOVA test reveals that the level of satisfaction among customers towards
banking services differs significantly according to their income level and occupation @5%
level. They concluded that the customers are more satisfied with the services provided by the
Private Banks as compare to Public Banks.(Mohapatra et al., 2017)
In the year 2017, the authors Sehgal&Divyanshustudied Demographic variables and
Customer Satisfaction- A Study from Perspective of Internet Banking Users of Public Sector
Banks. Banks try to improve service quality via Internet Banking and thereby reducing
service delivery cost. They say that no significant association has been found between Gender
and Customer Satisfaction. Whereas, Education, age and occupation has direct association
with satisfaction. The objectives of the study were to analyze the impact of demographic
variables and to extract the factors affecting customer satisfaction. The primary data was
collected from respondents being the customer of Punjab National Bank and State Bank of
India in the major cities of Punjab. They found that education and Customer Satisfaction are
dependent on each other. There is no association between gender and satisfaction. Occupation
has direct association to satisfaction. Age and customer satisfaction are dependent on each
other. They concluded that technology is becoming the most promising partner which
impacts the customer satisfaction. Several factors such as user friendliness, easiness,
reliability, responsiveness, efficiency play crucial role in affecting customer satisfaction.
(Sehgal & Divyanshu, 2017)
The author R. L. Sharmaconducted the study in the year2017 on the topic “The Study of
Customer Behavior and Its Impact on Customer Satisfaction, Loyalty and Service Quality
Perception in E-Banking Services in Jammu Division”. The aim of the study was to examine
the variations in customers’ loyalty, satisfaction and service quality based on the types of
banks, relationship duration and their E-Banking usage. The data for the study purpose was
collected from customers of both Public Sector and Private Sector Banks of Jammu Division.
Convenient sampling technique was adopted and the sample size was 350 participants.
ANOVA test technique was used to examine the variations in the variables. According to her,
E-Banking customers of Private Sector Banks are more loyal, satisfied and perceive batter
quality. She said that based on customers’ frequent and recent usage of e- banking services;
there is no variation in their loyalty, satisfaction or their perception of service quality. She
concluded that, the more the customers are associated with the bank the more they express
loyalty, satisfaction and better perception of service quality. Moreover study results show that
e-banking customers of private sectors banks are more loyal, satisfied and perceive better
service quality than the public sector banks.(R. L. Sharma, 2017)

The authors Dawar& Sharma analyzed the comparison of No-Performing Assets of
ICICI Bank and HDFC Bank. They concluded that HDFC Bank had performed well as very
less amount was blocked in form of NPAs. In 2017, HDFC Bank had only 0.63 percent NPAs
in proportion to net advances whilst ICICI Bank had 2.09 percent NPAs which was much
higher as compared to HDFC Bank. In the same way, the significant difference in the level of
NPAs was also observed using t- test score. They suggested that banks must focus on the
borrowers’ credibility before sanctioning loans to them and strict procedures should be
followed before lending to the customers so as to be safer in terms of quality assets.(Dawar
& Sharma, 2017)
The authors Dawar& Sharma examined the trend of Gross and Net NPA of Public
Sector and Foreign Banks. It was a comparative analysis. Non-Performing Asset is an
emerging issue in banking system all over the world. Specially, in Indian Banking System the
problem of NPAs is becoming more critical. The main objectives of the study were to
disclose the Gross and Net NPA situation in both Public Sector and Foreign Banks as well as
to analyze the trend of Gross and Net NPA of Public Sector and Private Sector Banks. The
study was based on the secondary data collected from the official website of RBI and Annual
Publications of banks. The period considered for the study was from 2011-12 to 2015-16. He
found that the Net Advances issued by the Public Sector Bank and Foreign Banks have
increased over the years. In Public Sector, Banks were in risk type situation as their NPA was
increasing rapidly, it was 3203.76 billion in comparison of 592.05 billion in 2011-12. In
foreign banks the rate of NPA was also increasing but the rate of growth was slow. Over the
duration of five years the overall rate of NPA had been increased by 96 percent in foreign
banks while 441 percent in Public Sector Banks and overall increase in all Scheduled
Commercial Banks was by 438 percent. He concluded that Foreign Banks are performing
well in terms of NPA as they have a control over it. He suggested the Public sector Banks to
adopt all such measures which are applied by the Foreign Banks to reduce the value of NPA.
(Dawar & Sharma, 2017)
The author Biswanathanalyzed the Non-performing Assets (NPAs). It was the
comparative analysis of selected Private Sector Banks. The main objectives of the study were
to compare and highlight the trend of the Gross NPA and Net NPA of HDFC Bank, ICICI
Bank and Axis Bank, to study the correlation between Net profit and Net NPA and to suggest
measures for efficient management of NPAs. The study was limited to these three banks only
and covered a period of 5 years only from 2011-12 to 2015-16. He also discussed the factors
responsible for the rise in NPAs. He concluded that the complete elimination of NPAs is
perhaps impossible in banking business. The situation of HDFC Bank and Axis Bank
regarding NPAs was praiseworthy but the situation of ICICI Bank was fearful during that
period. As the ratio of net NPAs were increasing by leaps and bounds. He suggested that the
top management should look forward to check it. He said that “the management of NPAs is a
very challenging task. It requires Preventive measures as well as Curative measures i.e. banks
should not only take steps to reduce the present NPAs but also take precaution to avoid future
NPAs”. He further suggested several preventive measures that banks can adopt to facilitate
the same.(Biswanath, 2017)
The authors Sabliet. al. measured Customer Satisfaction towards Customer Services in
banking sector of Mukah Sarawak. A total 391 respondents of Mukah residents participated
in the survey. For ethnicity, most of the respondents were Melanau at 29.4% (115), followed
by Iban at 27.6% (108) and 16.1% (63) were other races, 14.1% (55) Malay, 10.7% (42)
Chinese, and 2.0% (8) were Indian. The study revealed that the three identified factors
(intangibility, empathy, and responsiveness) were positively co-related with customer
services provided by the banking sectors in Mukah Sarawak.(Sabli et al., 2017)

The authors R. & Suresh studied the Customer Satisfaction Index Model for Indian
Banking Industry (A qualitative study). According to them, Customer Satisfaction Index
(CSI) is one of the best solutions which is a customer-based satisfaction benchmarking
system and serves as a standard metric, widely implemented in the United States and Europe.
However, there is no such index in India and there is a need for a non-financial, customer-
based satisfaction metric. The study was conducted in Chennai city. The focus group method
was adopted for data collection. The study was successful in terms of laying the foundation
towards building a Customer Satisfaction Index for consumer products and services in the
Indian context. A comprehensive theoretical thematic analysis produced an accurate portrayal
of the focus group content. Overall, the analysis yielded six themes and nine sub-themes i.e.
Core products and services, Customer Service Quality, Automated Service Quality, Monetary
Value, Non-Monetary Value and Brand Image.(R & Suresh, 2017)
The authors Sandhya&Ramandeepattempted to find the answer to the question “Does
the organizational culture affect the job satisfaction of employees in Banking Sector?” The
aim of the study was to understand the effect of organizational culture and job satisfaction
amongst the employees working in public and private sector banks. The standard
questionnaire such as OCTAPACE by UdaiPareek for organizational culture and S-D
employees’ inventory by Pestonjee for job satisfaction were used. The data was collected
from 300 managers of public and private sector banks. Branches of Public Sector Banks
comprised State Bank of India, Punjab National Bank, Oriental Bank of Commerce and
Punjab and Sind bank. Branches of Private Banks comprised Axis Bank, ICICI Bank, Yes
Bank and HDFC Bank. They concluded that organizational culture had direct effect on job
satisfaction. The analysis indicated that there was a positive relationship between
organizational culture and job satisfaction amongst banks. They found that Openness (One of
the dimension of organizational culture) had highest mean score among private sector banks
as compared to public sector banks. (Sandhya & Ramandeep, 2017)
The author John Manning,in his article says that the ongoing normalisation of
mobilebanking through further security strengthening and improved customer
convenience;and the greater adoption of biometrics for identity-authentication purposes
includingface,voice,fingerprintandbehaviouralcomponents.Assuch,bankingin2018islikelyto
be characterised by innovation and convenience, which ultimately puts the
customerfrontandcentre.
Astechnologiescontinuetomature,therefore,thisyearlookssettobeanexcitingperiod forglobal
banking.(John Manning, 2018)
The author Shilpa D. studied on Customer Satisfaction on Adoption of Mobile Banking
Services: A Study with Special reference to State Bank of India (SBI). Mobile Banking is the
third era of technological innovation after phone and net banking. The study was conducted
on SBI mobile banking users in Mysuru city and the sample size for the study was 100. The
study shows that large number of banking customers are drawing towards mobile banking as
they are satisfied with the secured transactions done by banks. In the context of gender, 65
users were male and 35 users were female. In the context of age pattern, 55 customers
belonged to the age group of 30-40 years. In the context of education, 30 and 45 respondents
were graduates and post graduates respectively. Majority of the customer were opinioned that
there is no need to visit bank because of 24*7 smooth transactions.(Shilpa D., 2018)
The author Parambilstudied about the progress of SBI and ICICI bank in India after
adoption of E-Banking Technology, in the era of Customer Satisfaction. He says that E-
Banking services have the major impact on banking relationship. He studied the comparative
progression of SBI and ICICI Bank being the top most leading banks of Public and Private
Sector respectively. Data mining helps banks to achieve their objectives and solve problems
such as customer scoring, target marketing, market-basket analysis, up-sell etc. The
objectives of the study were to identify various e-banking services provided by both the
sectors and to analyze progress as well as satisfaction level made by both the banks. For this
purpose convenient sampling was done and data was analyzed with percentage analysis,
mean and the factual devices like the rates, bar diagram etc. The study was limited to the
Calicut district of Kerala only. His study shows that most people are aware about the E-
banking services and most are using it in day to day life. Majority of the customers are
satisfied with the services provided by the banks.(Parambil, 2018)
The authors A & LS studied on Customers’ Satisfaction in Public and Private Sector
Banks in India: A Comparative Study, banking is considered as pure financial service
industry. The objectives of the study were to know the difference between satisfaction level
of private and public sector customers considering various aspects of customer satisfaction, to
know the factors responsible for low satisfaction level and to provide suggestions to improve
it. The study was conducted purely on primary data obtained from 200 respondents through
questionnaire containing five factors as per the SERVQUAL. The study reveals that rural
branches are more satisfied in terms of Tangibles, Reliability and Empathy while customers
in urban areas are more satisfied in terms of Responsiveness and Assurance. It also reveals
that the Private Sector Banks’ Customers are more satisfied than Public Sector Banks’
Customers and the behavior of public sector bank employees are not supportive in
comparison to private sector banks. (A & LS, 2018)
The author Muraristudied Financial Service Quality and its impact on Customer
Satisfaction: Evidence from Indian Banking Sector. The main objectives of the study were to
identify the various dimensions of financial service quality in Indian banks and to understand
the role of such dimensions of financial service quality in customer satisfaction. The study
was conducted by using SERVQUAL Model in addition with one more significant dimension
i.e. technology. The data was collected through face to face interviews and e-mails. Total 135
responses were collected over a period of two months. The findings of linear regression
analysis revealed that empathy, security issues and use of technology in banking transactions
are significantly more important for the customers in determining their level of customer
satisfaction with the quality of financial services.(Murari, 2018)
The authors Priya&Vijayaraghavanstudied on the topic “Impact of Computer
Technology on Customer Satisfaction in Indian Banking Sector”. The main objectives of the
study were to study the application of computer technology in commercial banks in India as
well as to measure the influence of computer technology on satisfaction of commercial bank
customers in Chennai city. They concluded that the best performance and success of banks
depend upon the innovative computer technology which they adopt. Customer satisfaction of
commercial banks depends upon the convenience offered to them in their banking
transactions. They also found that customers expect quick and fast banking transactions
supported by sophisticated computer technology. They also agreed and satisfied that the
computer technology help the commercial banks to ensure the safety and security of
customers banking transactions.(Priya & Vijayaraghavan, 2018)
The author Rohillaexplored State-wise Assessment of Banking frauds in India: A Study
of Trends in 21st Century. According to her, Fraud costs an arm and a leg to a bank. Frauds
prevailing in various states of Indian economy brought the interest of researchers to examine
the current picture of banking sector. The study covered the period from 2007-2016. RTI was
used for the primary sources of data collection and LokSabha starred and unstarred questions
are used as secondary source of data. She explored that if we talk about average amount
involved in fraud, Chandigarh and West Bengal fall among the most affected states of India.
In 2016, 3.2 million debit cards were exposed to the multiple bank cyber fraud by an
unknown cyber hacker which grabbed the attention of the global media.National Payment
Corporation of India reported that around 641 customers across 19 banks lost Rs. 1.3 cr. as a
result of the fraudulent transaction on their debit card. As per the study, 94% of the people
believe that the frauds have become more complicated than earlier. She concluded that
despite of having the largest share in the number of frauds and amount involved in frauds,
Maharashtra is the least affected state of India. Although we can’t exactly say why there is an
increase in number of frauds.Frauds committed in the Chandigarh and West Bengal are the
big scams. She recommended the government of India to bring the strong judicial laws, cyber
security laws and policy to strengthen the judicial precaution system as slow and weak
judicial procedures/ prosecution provides the platform to fraudster and delay in fraud
detection provides them escape route.(Rohilla, 2018)
The authors Amit S. & Charles J., in their study opined that providinghigh-qualitye-
bankingservicesisconsideredabasicstrategyforattractingandretainingcustomerswithelectronic
-bankingplatforms.Thepurposeofthispaperistoempiricallyinvestigate a comprehensive
moderated mediated mechanism for enhancing customerloyalty toward e-banking platforms
via e-banking service quality (EBSQ) practices.Reliability, website design, privacy and
security and customer service and support arethedimensions of EBSQ.(Amit S. & Charles J.,
2019)
The author Vijaistudied the Non-Performing Assets of Public Sector Banks in India. The
objectives of the study were to understand the concept of Non- performing assets (NPAs), to
study the general reasons for assets to become Non-performing assets and to study the
impact of NPAs on banks. He concluded that there was a need to bring more transparency in
the system and list of all the defaulters whose loans had been written off by the banks. He
suggested that here should be exemplary action against the willful defaulters so that others
do not indulge in similar activities. He said there was a need for restructuring of agricultural
loans in order to help the farmers.(Vijai, 2019)

The author Asthastudied on the topic – Women Employees Satisfaction with Human
Resource Initiatives: A Study in State Bank of India. It was conducted in New Delhi in 2019.
The aim of the study was assess women employees’ satisfaction level regarding workplace
environment and human resource initiatives of those working in SBI. For this purpose,
primary data was collected from 120 women employees and analyzed via percentage, chi-
square test and ANOVA. The study revealed that women employees express higher level of
satisfaction in connection to human resource initiatives. These initiatives are highly
appreciated by women working at various designations.(Astha, 2019)
The authors Kolte&Pareshanalyzed Punjab national Bank Scam. In NiravModi case,
Punjab National Bank lost $1.77 billion. The scam impacted the economy in an adverse way.
Now, there is a need of taking new reforms, new decisions, and autonomy to the banks. But
at the same time RBI needs to keep a close watch that whether the banks are using that
autonomy honestly or not. They revealed that “The collateral free SWIFT transactions were
happening not for a year but since last 7 years & these transactions were unidentified. Why
the SWIFT bypassed the CBS was also the question of utmost importance. The SWIFT
messaging system was unmonitored. Few employees including Gopalnath Shetty in mutual
agreement with the client led to such big fraud hence the honesty of these officials came
under question”. There was no planning in the Risk management System. There were rise in
operational risk without any identification of its gradual growth itself suggests that focus on
risk management was necessary. The role of RBI came also under question. Why did it not
provide attention while auditing the transactions?Later on RBI took forward necessary
improved steps that were welcome but the fault in the past made the loss which is
unforgettable & difficult to recover.(Kolte & Paresh, 2019)
The authors A. K. Singh et. al. studied on The Rise in NPA’s in the Indian Banking
Sector. They said that the growth of economy of any country depends upon the stability and
efficiency in banking sector. Their objectives of the study were to analyze the impact of
NPAs on Bank’s Performance and to dissect the purpose behind NPA’s in India. As per their
study growing Non-performing Assets not only decreases the profitability but also affects the
credibility of banks. NPAs have negative effect and influence on the performance of both
private and public banks. It was found that out of the total NPAs in December 2017, the
contribution of Public Sector Banks accounted for 88.74%. Whereas, the gross NPAs in
Private Sector was less than 1% 19 banks out of 21 banks.(A. K. Singh et al., 2019)
The authors Phillips &Masihanalyzed the Impact of Job Satisfaction on Performance of
Women Employee of Banking Industry in Kanpur City. The aim of the study was to check
out correlation between job satisfaction and women employee performance as well as to
know the cause and effect relationship between job satisfaction and women employee
performance. Samples of 101 respondents from banks in Kanpur were collected. The study
found a positive correlation between job satisfaction and women employee performance.
Mean of the statements is near to 4 which means that most of the respondents agreed with the
statements. 51% variation in performance is explained by statement of job satisfaction factors
in banking industry. The results of research showed a positive significant relationship that
exists between factors related to job satisfaction and women employee performance. (Phillips
& Masih, 2019)
The author Agrawal studied about the Customer Relationship Management Practices in
Banking (A Comparative Study of SBI and ICICI Bank). According to him, CRM practices
play an important role in any organization as it ensures customer retention. The present study
analyzed the data to compare the performance of both the banks in respect of different
parameters to conclude the CRM practices. He said that customers retain with their present
bank if the bank provides them proper information about products, services and offers to
them. The analysis showed that mostly performance of both the banks is similar. As per the
study, ICICI bank is more concerned in implementation of CRM practices as compared to
SBI. Study revealed that ICIC manages their customers systematically and handles their
customers queries in better way within mean time as well as it meets its customer
expectations by providing the desired services and product timely. It also promotes e-
marketing using latest information technology facilities. The research showed the difference
in working performance of the both ICICI and SBI banks to some extent. He concluded that
ICICI was performing better in the areas of customer loyalties and retaining customers
whereas SBI was working well in rendering services on time and customer’s satisfaction.
(Agrawal, 2019)
The authors Kumari& Ramesh studied the Antecedents and Outcomes of Customer
Satisfaction in Banking Industry. The purpose of the study was to find out if the customer
satisfaction leads to customer retention as well as to analyze the factors that bring satisfaction
to the customers in banking industry. The descriptive research design was used for the study
and Random sampling method was adopted in selecting 984 customers of 2586 branches of
eight different banks in Karnataka. They found that Relationship Marketing Practices
enhances value to the customers leading to customer satisfaction and those satisfied
customers stay longer with the same service provider. According to them, factors considered
for Relationship Marketing Practices are Empathy, trust, commitment, Bonding, Reliability,
Ethics, Service Quality, Knowledge and competence. They also concluded that Relationship
Marketing practices leads to customer retention in the banking industry by means of creating
value to the customer and satisfying them.(Kumari & Ramesh, 2019)
The authors Mathewos&Zaveristudied the Role of 4 Ps on Customer Satisfaction: A
Case Study of Berhan Bank in Hawassa. The main objectives of the study were to examine
the response of customers on the marketing mix elements of Berhan International Bank,
Hawassa area branches as well as to determine whether marketing mix elements have an
influence on customer satisfaction. Following table shows the number of branchesand the
number of customers:
TABLE 2.8:
Branches and Number of Customers covered by the Researcher
Branches Number of Customers
St. Gebreal 1307
Menaria 253
Arbsefer 441
Total 2001
The result of correlation between variables shows that there is significant and positive
relationship between the independent variables (service, price, placement, promotion,
process, & physical evidence) and the dependent variable (customer satisfaction). The results
also concluded from regression analysis that people, process and service have no significant
influence on customer satisfaction. They further gave recommendations such as: the branches
should make proper awareness creation to the clients and correctly implement the marketing
mix strategies, the branch managers should give greater attention to the dimensions that
highly influence and affect customers’ satisfaction, the branches manger should consider
enhancing their pricing strategy to achieve competitive advantage etc.(Mathewos & Zaveri,
2019)
The authors Sequeira&Namithastudied on Customer satisfaction in Banking Sector: A
micro study with reference to Dakshina Kannada District. The main objectives of the study
were to know the opinion regarding benefits provided by banks, to identify the expectations
of customers, to know the different purpose of using banks and to identify problems faced by
customers in banking sector. For the purpose of the study, overall of 160 respondents were
selected through stratified random sampling. The primary data collection was done with help
of structured questionnaire and Personal interview method. They found that Most of
customers have opened account in different banks for saving purpose. Majority of customers
using SMS service and having bank accounts in Syndicate bank and Canara bank. Syndicate
bank has been frequently used because of their habit of maintaining the account traditionally
with this bank and nearness of location. They also found that 101 customers are satisfied and
they are ready to recommend other to open bank account in particular bank. Most of the
customer of syndicate bank opinioned that Syndicate Bank provides quality services to
customers. They concluded that if the bank provides quality services, customer feel satisfied
and they speak well about bank and suggest others to open bank account in particular bank. If
they feel dissatisfied, they do not recommend it to others.(Sequeira & Namitha, 2019)
The authors Shetty & Shetty studied on Customer Satisfaction towards Banking Services
with reference to Corporation Bank. The aim of the study was to know the extent of problems
faced by the bank customers, and their level of satisfaction towards the banking services
provided by the Corporation Bank, Kodialbail Branch, Mangalore. 100 customers of the
bank, who are the employees of Besant Institutions, were contacted and data was collected
through questionnaire. Study revealed that 63% of the respondents have availed net banking
facilities. 66% of respondents had faced problems in operating their bank accounts. Only
18% of the respondents were satisfied, 32% of respondents were neutral and 14% were
highly dissatisfied about the services of the bank. (Shetty & Shetty, 2019)
The authors Saxena& Jindal studied Customer Satisfaction on Banking Services in
Indian Growing Economy Nainital District. The main objectives of the research were to
identify customer Satisfaction from Banking Services as well as to identify the most services
avail by banking customers. The data was collected through questionnaire from 50
respondents of different areas of Uttarakhand. They made an attempt to measure level of
customer satisfaction based on Five Points Likert’s Scale and converted the same in form of
perentage by considering various services of banks as parameters. The average mean of all
collective services were 73.80%. On the basis of this analysis, the researchers concluded that
the customer satisfaction level of banking services was 73.80%.(Saxena & Jindal, 2019)
The authors Sherigaret. al. studied on Customer Perception with regards to Innovation
in Indian Banking Sector – Use of Technological Products. They found that the usage of
technological banking service was all set to increase among the service class. The service
class at that moment was not using the services thoroughly due to various hurdling factors
like lack of security and fear of hidden costs etc. They suggested that banks should come
forward with measures to reduce the apprehensions of their customers through awareness
campaigns and meaningful advertisements to make technological banking popular among all
the age and income groups. Explored further, with the increasing consumer demands, banks
had to constantly think of innovative customized services to remain competitive. They
concluded that technological banking has been an innovative tool that was quickly becoming
a necessity. It has been a successful strategic weapon for banks to remain profitable in a
volatile and competitive market place. They said that in future, the availability of technology
to ensure safety and privacy of e-transactions and the RBI guidelines on various aspects of
technology based banking will definitely help in rapid growth of internet banking in India.
(Sherigar et al., 2019)
The authors Sharma et. al. studied on Causal analysis of Profitability and Non-
Performing Asset of Selected Indian Public and Private Sector Banks. There are two types of
NPAs ie. Gross NPAs and Net NPAs. The objectives of the study were to analyze the
relationship between Gross NPAs and profitability of banks, to know the performance of
public and private sector banks with respect to Gross NPAs and to find out the model for best
fit to profitability with Gross NPAs of the banks. The study was done for the period ranging
from 2006 to 2019. It was found that all banks were able to contain NPAs till 2012-13. But,
thereafter, NPAs were continuously increasing till 2018. It indicated the lack of transparency
and deliberate attempt to hide high value accounts which were NPAs but were not shown
under the category of NPA.(Sharma et al., 2020)
The authors Rahul & Bhatia studied on A Banking Frauds in India: A Challenge to
Corporate Governance. According to former deputy governor of Reserve Bank of India
frauds reported by banks can be classified into three main categories i.e. Technology related
frauds, Deposit Account related frauds and Advances related frauds. According to them, bank
frauds down the years have risen and one of the most important causes behind this is poor
and inefficient corporate governance practices by the banks. In this article they discussed
huge amount of scams wherein high-level officials are involved. The concluded that
effectiveness of our financial sector depends upon the organizational effectiveness of banks.It
is of high time requirement that the internal governance of the banks are monitored
effectively by the regulators and also from the banks it is upon them to fulfill the obligations
of being a good banker by complying with the requirements of the regulators. High profile
scams at Punjab and Maharashtra cooperative bank and Punjab National bank has shaken the
pillars of the corporate governance of banks.(Rahul & Bhalla, 2020)
The authors Rafiqet. al. analyzed the impact of corporate image, switching cost and
Customer trust on Customer Satisfaction of the banks which were listed on Pakistan Stock
Exchange. The data was collected from the banks users with the help of questionnaire and
used SPSS for analysis. In 1974, Pakistan Government passed an Act, to nationalize banks in
Pakistan. In 1991, the Government of Pakistan privatized banks again under its essential
economic policy. The aim of the study was to find out the relationship of customer
satisfaction with the above mentioned variables. The research study indicated that the
interrelationship of these factors would also differ with each bank. The study was conducted
for the period July 2019. The study proved that if the customer is satisfied or customer-
switching cost is high, then the probability of turning customers to other banks would reduce
but if the customers are not satisfied, then the chances of customers switching to other banks
would increase.(Rafiq et al., 2020)
Jeyanthiet. al. reviewed on the topic “Significance of Fraud analytics in Indian Banking
Sectors”. The main objectives were to study the types of frauds and fraud identification in
banking products. They classified fraud into three types. i.e. identity frauds, phishing and
card frauds. They also discussed the strategies to detect, predict and prevent fraud. They also
said that seriousness of banking employees is lacking towards detection of frauds. They
suggested that effective customer education and communications programs should be
recognized for customers explaining how to prevent fraud, and also helping them to
understand their own responsibilities towards refined digital safety.(Jeyanthi et al., 2020)
The authors B. Sharma et. al. investigated the types and reasons of frauds in Indian
Public Sector Banks. Fraud is said to be a one of the biggest challenges to the world and
particularly for banking sector. It is also a significant segment in the advancement of an
economy. The frauds may be done by the customers, management, employees or outsiders.
The aim of the study was to find the various categories of frauds occurred and reasons thereof
in the selected Indian public sector banks. The researchers collected data through
questionnaire filled from 90 bank staff, categorized into managers and officers of State Bank
of India (SBI), Bank of India (BOI) and Bank of Baroda (BOB) in the area of NCR and
Delhi. The analysis was done with with the help of various descriptive statistics such as
frequency distribution, mean, standard deviation, etc. To check the validity of the results and
test the hypotheses, ANOVA technique was used. It is found that major types of frauds
occurred were fake documents, forged cheques, manipulation of accounts, money laundering
and opening fictitious accounts. According to them, significant reasons of frauds identified
were lack of proper audit, lack of sufficient training to staff, multiple financing to same party
against same security, negligence to inspect the security documents and non- verification of
end use of funds. They recommended that all high-risk transactions should be checked on
continuous basis by the bank head and also by the concurrent auditor, bank staff must check
proper financial documents during the loan process to control the frauds. There should be
timely audit at regular intervals. Proper training must be provided to the bank staff for
prevention and detection of frauds.(B. Sharma et al., 2020)
The authors Batral&Batraexamined the trends and differences in NPAs across Bank
Groups in India. The researchers analyzed the trends of NPAs over the 14 years (2005-2018)
and tests the differences in performance levels by way of NPAs of the three types of bank
groups as per ownership type (public sector, private sector and foreign banks). They said that
according to RBI’s biannual Financial Stability Report (FSR), the gross non- performing
asset ratio stood at 10.8% in September, 2018. As per the researchers, during study period,
the average NPAs of public sector banks were the highest at 5.14%, followed by those of
foreign banks (3.20%). Private Banks had the lowest average NPAs at 1.28%. The standard
deviation of public sector banks was also the highest at 3.79% indicating a high variation in
their NPAs over the years. The CAGR of NPAs for public sector banks was also the highest
at 7.95% p.a. as compared to 1.84% p.a. for foreign banks and 1.28% p.a. for private sector
banks. Until 2010, there was a downward trend and the banks effectively managed to bring
down their NPAs from 5.4% (in 2005) to 2.2% (in 2010). The average was maintained at
2.2% in the following year. However, 2011 onwards, the NPAs started to rise and reached to
5% in 2015. A huge jump was noticed in 2016 when the NPA rose to 9.3% and reached to
14.6% in 2018. They concluded that private sector banks were doing better in NPAs as
compared to public sector banks.(Batral & Batra, 2020)
The author Sarkar analyzed the trend of Non-Performing Assets of State Bank of India.
He mentioned that the Bank of Bengal, that later became the State Bank of India. State Bank
of India with its seven associate banks commands the most important banking resources in
India. The main objectives of the study were to study the trend in Gross and Net NPA to
Gross and Net Advance of SBI as well as to study the difference in average Gross and Net
NPA to Gross and Net Advance of SBI.Study sample contained five years knowledge of
depository financial institution of State Bank of India. Sample period covered 5 financial
years spanning of 2013-2017. Data collected through secondary source was subject to Trend
Analysis, one way ANOVA. Two financial ratios are used namely Gross NPAs to Gross
Advances and Net NPAs to Net Advances. The study revealed that there was no significant
difference exists in Gross NPA to Gross Advances and Net NPA to Net Advances of SBI.The
study supported the perspective that no bank was so big that it could not fail.(Sarkar, 2020)
The author Pan Suninditaanalyzed the frauds in Indian banking Sector. The objective of the
study was to understand and analyze the causes behind increasing trends in frauds in Indian
banking sector. For the purpose of the study secondary data was collected from RBI website,
government reports, academic journals and newspapers. The study was limited for the period
of Indian public sector banks of 2017-18 to 2018-19.(Pan Sunindita, 2020)
TABLE 2.9:
The amount of banking frauds during 2017-2018 to 2018-2019(Bank group-wise)
Bank Groups No. of Amount No. of Amount involved
frauds 2017- involved frauds 2018- (million) 2018-19
18 (million) 2017- 19
18
Public sector 2,885 3,82,608.7 3,766 645,094.3
banks
Private Sector 1,975 24,782.5 2,090 55,151.4
Banks
Foreign Banks 974 2,560.9 762 9,553.0
Financial 12 1,647.0 28 5,534.1

institutions
Small finance 65 61.9 115 75.2
banks
Payment banks 3 9.0 39 21.1
Local area banks 2 0.4 1 0.2
Total 5,916 411,670.4 6,801 715,429.3
She concluded that there was lack of forensic analytical tools to identify potential in
different processes. Banks need to have more systematic and structured fraud risk
management framework. She suggested that banks need to harness their expertise and
experience across managing fraud and the compliance landscape and combine with
innovative technology and data analytics to address the problems.
The author Arora examined Non-Performing Assets. It was a comparative analysis of
Public Sector Banks, Private Sector Banks and Foreign Banks. The main objectives of the
study were to study the trend of GNPA Ratio, to study the composition of advances in term of
standard, substandard, doubtful and loss advances/assets and to find out is there any relation
between gross NPA and total advances. The formula to calculate Gross NPA ratio is:
GNPA Ratio = Gross NPA / Total Advances x 100
TABLE 2.10:
Gross NPA and Total Advances of PSBs for the period 2006-202
(Amount in Crores)
Year GNPA Total Advances GNPA Ratio
2006 41400.00 1134000.00 3.7
2007 38900.00 1465100.00 2.7
2008 40500.00 1819100.00 2.2
2009 45000.00 2282800.00 2.0
2010 59900.00 2733500.00 2.2
2011 74700.00 3346500.00 2.2
2012 117300.00 3942800.00 3.0
2013 164500.00 4560100.00 3.6
2014 227263.91 5215919.66 4.4
2015 278468.00 5616717.47 5.0
2016 539956.34 5827499.40 9.3
2017 684732.00 5866374.00 11.7
2018 895601.00 6141698.00 14.6
2019 739541.00 6382460.85 11.6
2020 678317.00 6615111.61 10.3
Correlation 0.85
TABLE 2.11:
Gross NPA and Total Advances of Private sector banks for the period 2006-2020
(Amount in Crores)
Year GNPA Total Advances GNPA Ratio
2006 7800.00 317600.00 2.5
2007 9200.00 420100.00 2.2
2008 13000.00 525900.00 2.5
2009 17000.00 585000.00 2.9
2010 17600.00 644200.00 2.7
2011 18200.00 811800.00 2.2
2012 18500.00 981400.00 1.9
2013 20800.00 1159200.00 1.8
2014 24189.56 1361322.87 1.8
2015 33700.01 1608657.47 2.1
2016 55853.12 1974239.97 2.8

2017 91915.00 2260408.00 4.1
2018 125863.00 2725891.00 4.6
2019 180872.44 3442346.66 5.3
2020 205847.82 3776231.27 5.5
Correlation 0.96
They concluded that that in term of performance efficiency private sector banks are
better than public sector banks. PSBs have high NPAs that may be due to liberal credit
policies and lenient terms and conditions of loans.(Arora, 2021)

3- RESEARCH METHODOLOGY
3.1Introduction to the Research Methodology:
Research Methodology is a crucial component of research activities as it helps
to determine the scientific findings. The process of gathering data and information in
order to test the hypotheses is known as research methodology. Interviews may be
part of the data collection process. Surveys and other research methods that might
incorporate data from the past as well as the present. The components of the research
process, including study design, data collection techniques, questionnaire design,
sampling design, and statistical tools, have been covered in this chapter.
3.2Statement of the study or problem:
Even while customer satisfaction in the banking industry is becoming more
and more important, there is a clear lack of comprehensive research in the literature
comparing public and private sector banks, especially in the context of Mumbai. In
order to close this gap, this study compares and examines the customer satisfaction
ratings of four sample banks—two from the public and two from the private sectors.
3.3Objectives of the study:
The objectives of a research study are specific goals or purposes that guide the
research process and define what it intend to achieve through the research. These
objectives help to focus on the purpose behind the study, outline of research
questions, and provide a clear direction for the investigation. The objectives vary
depending on the nature of your research, field of study, and the research questions
aim to address the problem. The objectives of this study are as follows:
1. To discuss the history of banking in India with special reference to role of select
banks undertaken in the study.
2. To highlight the qualitative strategies adopted by select public and private banks after
reforms of 1991.
3. To identify and compare the Value-added Services that determine the Customer
Satisfaction in Public Sector and Private Sector banks
4. To evaluate different factors affecting customer satisfaction related to banking with
private and public sector banks.
5. To compare the performance of select public and private sector banks being
successful in gaining more customer satisfaction.
6. To discuss the role of banking services in India with Special reference to Public and
7. To highlight the factors for determining the customer preferences to opt for the
services of Public Sector Banks and Private Sector Banks,
8. To analyse the factors for improving the customer satisfaction for Public and Private
Sector Banks.
9. To develop the strategies for improving the overall performance of Public and Private
Sector Banks.
3.4Hypothesis of the Study:
A testable claim or well-informed estimate put forth to explain a phenomena,
forecast outcomes, or direct an experiment or research project is called a hypothesis.
A hypothesis is a speculative explanation for a collection of observations or a
potential fix for an issue in scientific study and the scientific process. It is a crucial
phase in the scientific investigation process.

Creating hypotheses based on observations, prior research, or current
understanding is a step in the scientific method. Then, these theories serve as the
foundation for more research. To determine a theory's viability and gain a better
understanding of the phenomenon they are studying, scientists gather data and
conduct experiments. The results of these tests can lead to the acceptance, rejection,
or modification of hypotheses, which in turn can lead to theories and the advancement
of scientific knowledge.
The following statements have been formulated to determine the influence of
Service Quality, Customer Satisfaction, E Banking, and Grievance Handling to find
out its impact on the Overall Satisfaction for both Public Sector Banks & Private
Sector Banks respectively:
Hypothesis 1
Null Hypothesis (H10):There is no significant difference in Customer Satisfaction for
Public sector banks and private sector banks
Alternative Hypothesis(H1A):There is a significant difference in Customer
Satisfaction for Public sector banks and Private sector banks.
Hypothesis 2
Null Hypothesis (H20):There is no significant differences in Customers’ preferences
between Public Sector Banks and Private sector banks
Alternative Hypothesis(H2A):There is a significant difference in Customers’
preferences between Public Sector Banks and Private sector banks
Hypothesis 3
Null Hypothesis (H30):Service Quality is not highly influential on Customer
Satisfaction for both Public Sector Banks and Private Sector Banks
Alternative Hypothesis(H3A):Service Quality is highly influential on Customer
Satisfaction for both Public Sector Banks and Private Sector Banks
Hypothesis 4:
Null Hypothesis (H40):There is no significant effect of Bank Infrastructure, Service
Quality, Customer Satisfaction, Grievance handling and E-Banking Services on
Customer Satisfaction for both Public Sector Banks and Private Sector Banks
Alternative Hypothesis(H4A):There is a significant effect of Bank Infrastructure,
Service Quality, Customer Satisfaction, Grievance handling and E-Banking Services
on Customer Satisfaction for both Public Sector Banks and Private Sector Banks
Hypothesis 5:
Null Hypothesis (H50): There is no significant difference in the Overall performance
between Public sector banks and Private sector banks
Alternative Hypothesis(H5A):There is a significant difference in the Overall
performance between Public sector banks and Private sector banks
3.5Sampling Design:
A sampling design is a definite plan for obtaining a sample from a given
population. It refers to the technique or the procedure the researcher would adopt in
selecting items for the sample. Sample design may as well lay down the number of
items to be included in the sample i.e., the size of the sample. The components like
Sample Universe, Sampling Unit, Sample, Sample Size and Sampling Method have
been covered under Sampling Design.
Sample Universe: It constitutes the customers of bothPublic sector banks and Private
sector banks in Mumbai city. State Bank of India and Union Bank have been
considered for Public Sector Banks. ICICI Bank and HDFC Bank have been
considered for Private Sector Banks.
Sample: It is the subgroup of the universe to be included in the study. The sample
includes proportion of the customers of both Public sector banks and Private sector
banks in Mumbai city.
Sample size: It specifies the number of samples chosen from a target population. The
target population is the customers of both Public sector banks and Private sector
banks in Mumbai city. The customers of both Public sector banks and Private sector
banks in Mumbai city have been selected by using the Cochran’s (1977) formula of
variability. Due to the heterogeneous nature and high variability characteristics of the
elements of the population, the formula of variability has been used to calculate the
sample size.
Determination of Sample Size:
The following formula has been used to determine the sample size when the
population is having high degree of variability:
n =[ z2pq]/[e2]
where, n is the sample size, z is the selected critical value of desired confidence
level, p is the estimated proportion of an attribute that is present in the population,
q = 1− p and e is the desired level of precision or tolerable error
For example, suppose we want to calculate a sample size of a large population whose
degree of variability is not known. Assuming the maximum variability, which is equal
to 50% ( p =0.5) and taking 95% confidence level with ±3.5% precision, the
calculation
for required sample size will be as follows:
p = 0.5 and hence q =1-0.5 = 0.5; e = 0.05; z =1.96

n =[ z2pq]/[e2]
n =[(1.96)2(0.5)(0.5)]/[(0.05)2]
n = [(3.8416)(0.25)/[0.025]
n = [0.9604] / [0.025]
n = 384.16
The sample size calculated through the formula has been found to be 384.16.
The sample size has been finalized as [n = 500] to include more number of customers
of both Public sector banks and Private sector banks from Mumbai city.
The sample size has been summarized as follows:
Public sector banks as n = 500[State Bank of India and Union Bank]
Private sector banks as n = 500[ICICI and HDFC]
Sampling Method:
The sampling Method used to select the sample of 500 customers each
consisting both Public sector banks and Private sector banks by using Snowball
Sampling and Convenience sampling method. Both are the types of Non-Probability
sampling. By using Snowball sampling or referral sampling, the customers from
Public sector banks and Private sector banks have been identified from the available
references. After identifying the customers from Public sector banks and Private
sector banks, convenience sampling method has been used.
By using convenience sampling method, the most accessible population can be
identified. Based on the willingness, availability and their readiness, the information
was collected. The customers from Public sector banks and Private sector banks
from Mumbai city have been easily obtained through convenience sampling. The
information has been collected from those respondents who are knowledgeable and
ready to share the information about the influence of Bank Infrastructure, Service
Quality, Customer Satisfaction, E-Banking Services and Grievance handling on the
Overall Satisfaction. Convenience sampling minimizes the non-response errors.
3.6Method of Data Collection:
3.6.1 Questionnaire:
For the main questionnaire please refer to the APPENDIX. (App no.)The following
types of questions were asked to the respondents related to the banking satisfaction:
1) What is your type of bank?
2) What is the name of your bank?
3) Which type of account you have?
4) How do you rate this bank while opening bank account?
5) How often do you use banking services in a month?
6) What is the level of customer satisfaction related to branch facility?
7) How do you rate Bank’s ATM facility location wise?
8) Which kind of services do you get from bank (also the products)?
9) What is the level of customer satisfaction related to Service Quality?
10) How much time does it take to add a beneficiary for NEFT/ IMPS transfer
payments?
11) How much transaction limit does your bank allow you per day?
12) How do you rate the level of satisfaction with the transaction limit?
13) Does your bank have the option to increase transaction limit?
14) Have you ever made a complaint to your bank about their services?
15) Were your complaints solved immediately?
16) Did your complaints ever reach till the necessity of the intervention of the bank’s
ombudsman?
17) How do the following factors affect you while using your bank’s services?
18) Do you use bank mobile application services?
3.6.2 Secondary Data:
The Secondary data is collected from RBI Reports, articles, periodical journals,
research papers, newspapers, theses.
3.7Data Analysis/ Statistical Tools:
Research area:
The research area has been from Mumbai city to determine the Overall
satisfaction for both Public sector banks and Private sector banks.
Statistical tools used
The present research work is to test the effect of Bank Infrastructure, Service
Quality, Customer Satisfaction, E-Banking Services and Grievance handling on the
Overall satisfaction for both Public sector banks and Private sector banks. Both
Descriptive Statistics & Inferential Statistics have been used for data analysis and
interpretation.
Type of Statistics used
For the purpose of Data Analysis, Descriptive Statistics and Inferential
Statistics are used.
Descriptive Statistics are used to tabulate the data, calculating the frequencies
and generating the summary tables in the form of bar chart and pie chart. whereas,
Inferential Statistics are used to draw conclusions about the samples.
Inferential analysis has been used to derive the logical conclusions of the
samples. The following techniques have been used in the inferential analysis:
Chi-Square test, Kolmogorov Smirnov test, Mann Whitney U test, Multiple
Regression, Reliability Analysis, Factor Analysis and Structural Equation Modeling
(SEM)
3.8Limitations of the Study:
1. Primary data relevant for the study may much depend upon the co-operation of
the respondents.
2. The geographical limitation of the primary data collection is confined to the
Mumbai City only.
3. Public Sector Banks are represented by only two banks ie. State Bank of India and
Union Bank of India
4. Private Sector Banks are represented by only two banks ie. ICICI bank and HDFC
Bank
4. Respondents’ responses may have biased and based on their personal experience.
5. It is challenging to justify best type of bank.
In conclusion, this chapter has provided a comprehensive overview of the
research methodology employed in this study, focusing on its applicability to the
dynamic landscape of the customer satisfaction in the Indian Banking Sector. The
meticulously designed research framework, incorporating both primary and secondary
data sources, ensures the robustness and reliability of the findings. Through the
judicious selection of research methods and tools, this study aspires to contribute
significantly to the existing body of knowledge surrounding the Customer satisfaction
in Indian Banking Sector, ultimately facilitating informed decision-making for
stakeholders and policymakers.

4- DATA ANALYSIS AND INTERPRETATION
The Data Analysis and Interpretation chapter delves into the heart of this research
study, meticulously examining the collected data to uncover insights into customer
satisfaction within both the public and private sector banks operating in India. This chapter
serves as a critical bridge between the research methodology employed and the ultimate
understanding of customer preferences, perceptions, and experiences. Through a systematic
and rigorous analytical process, the chapter aims to unravel patterns, trends, and correlations
within the data, shedding light on the factors that influence customer satisfaction levels. By
juxtaposing quantitative findings with qualitative narratives, this analysis strives to paint a
comprehensive picture of the intricate dynamics at play in the banking sector, contributing to
a deeper comprehension of the nuances that distinguish public and private sector banks in
terms of customer-centricity. As the subsequent sections unfold, the chapter stands poised to
offer meaningful interpretations that could potentially reshape the strategies and policies
underpinning the banking industry's approach to customer satisfaction.
Primary Data analysis has been classified into Descriptive analysis & Inferential
Analysis. The data has been analysed by using IBM SPSS Statistics 26.
4.1 Descriptive analysis:
For doing the descriptive analysis, the simple percentage method has been used to calculate
the frequencies and has been represented by using Pie Chart.
4.2 Inferential analysis:
Inferential analysis has been used to derive the logical conclusions of the samples. The
following techniques have been used in the inferential analysis.

 Chi.Square test, Kolmogorov Smirnov test, Mann Whitney U test, Multiple
Regression, Reliability Analysis, Factor Analysis and Structural Equation Modeling
(SEM).
4.1 Descriptive Analysis:
4.1.1 Public Sector Banks:
Public sector banks in India are financial institutions that are owned and operated by
the government of India. The government's ownership typically exceeds 50%, which means
that it has a controlling stake in these banks. This ownership structure gives the government a
significant influence in the functioning and decision-making of these banks. These banks play
a crucial role in the country's economy by providing various banking and financial services to
individuals, businesses, and the government itself. Public sector banks are also commonly
referred to as government banks or nationalized banks.
Table 4.1:
Classification of Gender
Gender Frequency Percent
Male 273 54.6
Female 227 45.4
Total 500 100.0

Chart 4.1:
227
273
Male Female
INFERENCE: Table 4.1 & Chart 4.1 shows the classification of gender of the respondents.
Out of 500 respondents, 273(55%) of the respondents are male and 227(45%) are female.
This shows that majority of the respondents were male. The conclusion at the end is been
observed that Number of Male are more than the Number of Females.
Table 4.2:
Classification of Marital Status
Marital Status Frequency Percent
Married 131 26.2
Unmarried 365 73.0
Divorced/ Widow 4 8
Total 500 100.0

Chart 4.2:

4 131
Married
Unmarried
Divorced/ Widow
365
INFERENCE: Table 4.2 & Chart 4.2 show the marital status of the respondents. Out of 500
respondents, 131(26.2%) of the respondents were Married, 365(73%) as Unmarried and
4(0.8%) as Divorced/ Widow. It shows that the majority of the respondents are Unmarried.
The difference between Married and Unmarried respondents is of 35%.
Table 4.3:
Classification of Age
Age Frequency Percent
18 to 30 386 77.2
31 to 40 54 10.8
41 to 50 32 6.4
More than 50 28 5.6
Total 500 100.0
Chart 4.3:
32
28
54
18 to 30
31 to 40
41 to 50
More than 50
386
INFERENCE: Table 4.3 & Chart 4.3 show the classification of age of respondents. Out of
500 respondents, 386(77%) of the respondents are between the age group 18 to 30, 54(11%)
are between 31 to 40, 32(6%) between 41 to 50 and 28(6%) are More than 50. This
information provides insights into the age distribution of the surveyed population. The
majority of individuals (77.2%) fall in the 18 to 30 age range, while smaller percentages are
found in the subsequent age brackets.
Table 4.4:
Educational Qualification
Educational Qualification Frequency Percent
SSC 38 7.6
HSC 129 25.8
UG 220 44.0
PG 94 18.8
Vocational / technical courses 19 3.8
Total 500 100.0
Chart 4.4:
3.80%
18.80% 7.60%
25.80%
44.00%
SSC HSC UG
PG Vocational / technical courses
INFERENCE: Table 4.4 & Chart 4.4 show the educational qualification of the respondents.
Out of 500 respondents, 38(8%) of the respondents are having Educational Qualification as
SSC, 129(26%)as HSC, 220(44%) as UG, 94(19%) as PG and 19(4%) as Vocational /
technical courses. It shows the majority of the respondents are graduates .This information
gives insights into the educational background of the surveyed population. The majority of
individuals have completed graduation, which is a common educational milestone after
higher secondary school. A significant portion has pursued post-graduation, while smaller
percentages have completed vocational/technical courses.
Table 4.5:
Occupation
Occupation Frequency Percent
Government Service 32 6.4
Private Organisation 298 59.6
Self employed 70 14.0
Student 100 20
Total 500 100.0
Chart 4.5:
Occupation
Percent
14% 6%
20%
60%
Government Service Private Organisation Self employed Student
INFERENCE: Table 4.5 & Chart 4.5 state the occupation of respondents. Out of 500
respondents, 32(6.4%) of the respondents belong to Government Service, 298(60%) to
Private Organisation, 70(14%) are Self-employed and 100(20%) selected Student. The survey
was carried out to know the occupation status of an individual that how many percent of
individuals have selected which type of occupation. This shows that majority of respondents
are working in Private Organisation.
Table 4.6:
Name of the Public Sector Bank
Name of your bank Frequency Percent
State Bank of India 364 72.8
Union Bank of India 136 27.2
Total 500 100.0
Chart 4.6:
Name of the Public Sector Bank
Public Sector Bank
136
State Bank of India

Union Bank of India
364
INFERENCE: Table 4.6 & Chart 4.6 show the number of respondents having accounts in
State Bank of India and Union Bank of India. Out of 500 respondents, 364(73%) of the
respondents have accounts in State Bank of India and 136(27%) in Union Bank of India. It
shows that majority of the respondents have accounts with State Bank of India. The
difference between the number of the SBI and UBI is 36%. So in public sector bank, SBI
stands first.
Table 4.7:
Type of Account
Saving Account 458 91.6
Current Account 36 7.2
Any other 6 1.2
Total 500 100.0
Chart 4.7:
Type of Account
Type of Account
100% 91.6 7.2 1.2 100

90%
80%
70%
60%
50% 458 36 6 500
40%
30%
20%
10%
0%
Saving Account Current Account Any other Total
Frequency Percent
INFERENCE: Table 4.7 & Chart 4.7 focus on the type of account the respondents have.
Out of 500 respondents, 458(92%) of the respondents have Saving Account, 36(7%) have
Current Account and 6(1%) as Any other. It shows that majority of the respondents opted for
Saving Account. As saving account helps in promoting the saving habit of an individual with
numerous facilities, an individual likely opt to go with savings account.
Table 4.8:
Rating of the Bank’s ATM
Rate Bank’s ATM Frequency Percent
Highly Inconvenient 13 2.6
Inconvenient 27 5.4
Neutral 126 25.2
Convenient 246 49.2
Highly Convenient 88 17.6
Total 500 100.0
Chart 4.8:
100%
2.6 5.4 25.2 49.2 17.6 100
90%
80%
70%
60%
50%
13 27 126 246 88 500
40%
30%
20%
10%
0%
Highly Inconvenient Inconvenient Neutral Convenient Highly Convenient Total
Frequency Percent
INFERENCE: Table 4.8 & Chart 4.8analyses the satisfaction of customers towards the
Bank’s ATM. Out of 500 respondents, 13(3%) of the respondents Rate Bank’s ATM as
Highly Inconvenient, 27(5%) as Inconvenient, 126(25%) as Neutral, 246(49%) as Convenient
and 88(18%) as Highly Convenient. Majority of respondents had a neutral experience with
the Bank’s ATM. As ATM is one of the facilities provided by the bank to any account bank
holders, the above survey shows that how much an individual rates this facility of bank.
Table 4.9:
Rating of the bank while opening Bank Account
Rate this bank Frequency Percent
Very poor 41 8.2
Poor 126 25.2
Average 183 36.6
Good 71 14.2
Excellent 79 15.8
Total 500 100.0
Chart 4.9:

100%
8.2 25.2 36.6 14.2 15.8 100
90%
80%
70%
60%
50%
41 126 183 71 79 500
40%
30%
20%
10%
0%
Very poor Poor Average Good Excellent Total
Frequency Percent
INFERENCE: Table 4.9 & Chart 4.9 analyse customer satisfaction during the process of
opening a bank account. Out of 500 respondents, 41(8%) of the respondents rate it as Very
poor, 126(25%) as Poor, 183(37%) as Average, 71(14%) as Good and 79(16%) as Excellent.
Majority of the respondents selected average rating while opening bank account. To let an
individual save a amount from its earning, or to avail facilities like deposit’s, withdrawal,
loan and investments. The bank comes to rescue by helping an individual to open its bank
account.
Table 4.10:
Usage of Banking Services
Banking Services Frequency Percent
Never 11 2.2
Rarely 60 12.0
Sometimes 157 31.4
Often 123 24.6
Always 149 29.8
Total 500 100.0
Chart 4.10:

100%
2.2 12 31.4 24.6 29.8 100
90%
80%
70%
60%
50%
11 60 157 123 149 500
40%
30%
20%
10%
0%
Never Rarely Sometimes Often Always Total
Frequency Percent
INFERENCE: Table 4.10 & Chart 4.10 showthe frequency of respondents’ usage of banking
services. Out of 500 respondents, 11(2%) of the respondents Never used banking services,
60(12%) selected rarely, 157(31%) as Sometimes, 123(25%) as Often and 149(30%) as
Always. Banking services is provided by the bank to its bank account holder such as ATM,
Net banking, UPI, Loan facility.
Table 4.11:
Time taken to add a beneficiary for NEFT/ IMPS transfer payments
Time taken Frequency Percent
Less than half a day 212 42.4
One day 109 21.8
More than one day 179 35.8
Total 500 100.0
Chart 4.11:
transfer payments
100% 42.4 21.8 35.8 100

90%
80%
70%
60%
50% 212 109 179 500
40%
30%
20%
10%
0%
Less than half a day One day More than one day Total
Frequency Percent
INFERENCE: Table 4.11 & Chart 4.11 show respondents’ opinion on time taken to add a
beneficiary for NEFT/ IMPS transfer payments. Out of 500 respondents, 212(42%) of the
respondents are of the opinion about the time taken less than half a day, 109(22%) as One day
and 179(36%) as More than one day. NEFT/ IMPS are facility provided by bank to account
holder to transfer funds from one place/ account to another place/account. The above chart
display the response on these transfer payments.
Table 4.12:
Transaction limit per day
Transaction limit per day Frequency Percent
20000 70 14.0
50000 293 58.6
More than 50000 137 27.4
Total 500 100.0
Chart 4.12:
Transaction limit
100% 14 58.6 27.4 100

90%
80%
70%
60%
50% 70 293 137 500
40%
30%
20%
10%
0%
20000 50000 More than 50000 Total
Frequency Percent
INFERENCE: Table 4.12 & Chart 4.12 show the transaction limit per day. Outof 500
respondents, 70(14%) of the respondents are of the opinion about the transaction limit as Rs.
20000, 293(59%) as Rs. 50000 and 137(27%) as More than Rs. 50000. A bank account
holder is given a per day transaction limit by its bank to withdraw funds in a day.
Table 4.13:
Level of Satisfaction with the transaction limit
Level of Satisfaction Frequency Percent
Very Low 11 2.2
Low 43 8.6
Neutral 256 51.2
High 128 25.6
Very High 62 12.4
Total 500 100.0
Chart 4.13:
100%
2.2 8.6 51.2 25.6 12.4 100
90%
80%
70%
60%
50%
11 43 256 128 62 500
40%
30%
20%
10%
0%
Very Low Low Neutral High Very High Total
Frequency Percent
INFERENCE: Table 4.13 & Chart 4.13 measure the level of satisfaction with the
transaction limit. Out of 500 respondents, 11(2%) of the respondents’ satisfaction is Very
Low, 43(9%) is Low, 256(51%) are Neutral, 128(26%)are Highly satisfied and 62(12%)is
Very High. As observe in chart 4.3, a bank account holder is given a per day transaction
limit, so how much does the bank account holder is satisfied with this facility can be analysed
from the above chart. It can be observed that a maximum number of respondents are being
neutralwith the per day transaction limit facility.
Table 4.14:
Option to increase in transaction limit
Transaction limit Frequency Percent
Yes 288 57.6
No 212 42.4
Total 500 100.0
Chart 4.14:
100% 57.6 42.4 100
90%
80%
70%
60%
50% 288 212 500
40%
30%
20%
10%
0%
Yes No Total
Frequency Percent
INFERENCE: Table 4.14 & Chart 4.14 shows that out of 500 respondents, 288(58%)
respondents’ opinion about the bank have the option to increase transaction limit is Yes and
212(42%) is No. So as observed in chart 4.13, as neutral % of respondents are satisfied, so
the above chart shows the data where the respondents are given an option to increase in
transaction limit, so it has been observed that the majority of the respondents are in the
opinion “Yes”, that the transaction limit should be increased.
Table 4.15:
Extent of Customer Satisfaction
Extent of Customer Satisfaction Frequency Percent
Very Low 49 9.8
Low 140 28.0
Neutral 197 39.4
High 75 15.0
Very High 39 7.8
Total 500 100.0
Chart 4.15:
Extent of Customer Delight
100%
9.8 28 39.4 15 7.8 100
90%
80%
70%
60%
50%
49 140 197 75 39 500
40%
30%
20%
10%
0%
Frequency Percent
INFERENCE: Table 4.15 & Chart 4.15represents the extent of customer Satisfaction with
reference to the bank. Out of 500 respondents, 49(10%) of the respondents selected Very
Low, 140(28%) as Low, 197(39%) as Neutral, 75(15%) as High and 39(8%) as Very High.
The data shows that the customers are largely indifferent towards the functioning of the
Public Sector Banks.This table summarizes the distribution of customer satisfaction levels
among the 500 respondents. It appears that the majority of respondents fall into the "Neutral"
category, indicating a moderate level of satisfaction, while a significant portion also falls into
the "Low" category.
Table 4.16:
Rating the Bank’s ATM
Inconvenient 33 6.6
Neutral 162 32.4
Convenient 197 39.4
Total 500 100.0
Chart 4.16:
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Frequency Percent
INFERENCE: Table 4.16 & Chart 4.16 analyse the respondents’ opinion towards the
Bank’s ATM. shows that out of 500 respondents, 16(3%) of the respondents Rate Bank’s
ATM as Highly Inconvenient, 33(7%) as Inconvenient, 162(32%) as Neutral, 197(39%) as
Convenient and 92(18%) as Highly Convenient. Hence it can be concluded that they need to
improve over the number of ATM facility provided by the Public Sector Banks.This table
summarizes the distribution of ratings for the bank's ATM service among the 500
respondents. The majority of respondents find the ATM service either "Convenient" or
"Highly Convenient," indicating a positive perception. However, there are also respondents
who find it either "Inconvenient" or "Highly Inconvenient."
Table 4.17:
Grievance Handling (Made a complaint)
Made a Complaint Frequency Percent
Yes 221 44.2
No 198 39.6
May be 81 16.2
Total 500 100.0
Chart 4.17:
100% 44.2 39.6 16.2 100

90%
80%
70%
60%
50% 221 198 81 500
40%
30%
20%
10%
0%
Yes No May be Total
Frequency Percent
INFERENCE: Table 4.17 & Chart 4.17 show the number of respondents that made a
complaint. Out of 500 respondents, 221(44%) of the respondents Made a Complaint as Yes,
198(40%) as No and 81(16%) as May be. This shows that majority of respondents did make
complaint. This table summarizes the distribution of respondents based on whether they made
a complaint regarding grievance handling. The majority of respondents (44.2%) indicated
that they have made a complaint, while 39.6% stated that they have not made a complaint.
Additionally, 16.2% of respondents were unsure or possibly made a complaint ("May be").
Table 4.18:
Grievance Handling (Solving of complaint)
Yes 199 39.8
No 174 34.8
May be 127 25.4
Total 500 100
Chart 4.18:
Grievance Handling (Solving of complaint) in %
300
250
200
150
100
50
39.8 34.8 25.4
0
Yes No May be
Percent Frequency
INFERENCE: Table 4.18 & Chart 4.18 represent the number and percentage of
respondents’ experience with reference to solving of complaint. Out of 500 respondents,
199(40%) of the respondents’ opinion about the complaints solved immediately is Yes,
174(35%) is No and 127(25%) is May be. Majority believe complaints were solved
immediately. If complaints are made then solving those complaints is also a part of Grievance
handling. The above data shows that in how much percent of complaint is solved of an
individual with comparing the data of making a complaint.
Table 4.19:
Bank’s Ombudsman
Bank’s Ombudsman Frequency Percent
Yes 254 50.8
No 246 49.2
Total 500 100.0
Chart 4.19:
Bank’s Ombudsman
Bank’s Ombudsman
100% 50.8 49.2 100
90%
80%
70%
60%
50% 254 246 500
40%
30%
20%
10%
0%
Yes No Total
Frequency Percent
INFERENCE: Table 4.19 & Chart 4.19 shows that out of 500 respondents, 254(51%) of the
respondents’ opinion whether the complaints ever reach till the necessity of the intervention
of the bank’s ombudsman is Yes and 246(49%) is No. After the complaints are made the next
action is to solve that complain which is done by the bank’s ombudsman, so the above data
shows the number of frequency of complaints that goes in front of bank’s ombudsman.
Table 4.20:
Usage of Online Portal / Bank Application
Bank Mobile Application Frequency Percent
Yes 386 77.2
No 114 22.8
Total 500 100.0
Chart 4.20:
100% 77.2 22.8 100
90%
80%
70%
60%
50% 386 114 500
40%
30%
20%
10%
0%
Yes No Total
Frequency Percent
INFERENCE: Table 4.20 & Chart 4.20 show the number of respondents that use the online
portal of their bank. Out of 500 respondents, 386(77%) of the respondents selected Yes and
114(23%) selected No. This means Majority of respondents use their bank’s online portal. As
technology is increasing, the need for work over cloud is also increasing. So the bank
provides facilities to its account holders the usage of online portal/ bank application to make
it convenient for the account holders to avail banking facility from anywhere via internet.
Table 4.21:
Satisfied Frequency Percent
Highly Dissatisfied 118 23.6
Dissatisfied 190 38.0
Neutral 146 29.2
Satisfied 26 5.2
Highly Satisfied 20 4.0
Total 500 100.0
Level of satisfaction ofthe Online Portal

Chart4.21:
Level of satisfaction of the Online Portal

100% 23.6 38 29.2 5.2 4 100
90%
80%
70%
60%
50% 118 190 146 26 20 500
40%
30%
20%
10%
0%
Highly Dissatis- Dissatisfied Neutral Satisfied Highly Satisfied Total
fied
Frequency Percent
INFERENCE: Table 4.21 & Chart 4.21 analyses the level of satisfaction of the online
portal. Out of 500 respondents, 118(24%) of the respondents are Highly Dissatisfied
190(38%) are Dissatisfied, 146(29%) are Neutral, 26(5%) are Satisfied and 20(4%) are
Highly Satisfied. Majority of respondents are dissatisfied with their bank’s online portal,
which shows that the account holder is not so happy with the idea of facility via internet, they
prefer availing facility physically.

4.1.2 Private Sector Banks:
Private Sector banks in India are the financial institutions that are owned and operated
by private entities, as opposed to being government-owned like public sector banks. These
banks have a significant presence in India's banking and financial industry and play a crucial
role in providing a wide range of banking services to individuals, businesses, and other
clients. Private sector banks have gained prominence in recent decades due to their innovative
approaches, customer. centric strategies, and technological advancements.
Table 4.22:
Gender Frequency Percent
Male 269 53.8
Female 231 46.2
Total 500 100.0
Chart 4.22:
269
500
231
Male Female Total

INFERENCE: Table 4.22 & Chart 4.22the classification of gender of the respondents. Out
of 500 respondents, 269(54%) of the respondents are male and 231(46%) are female. It shows
the majority of the respondents are male that are more likely to own account in private sector
banks.
Table 4.23:
Marital Status Frequency Percent
Married 129 25.8
Unmarried 363 72.6
Divorced/ Widow 8 1.6
Total 500 100.0
Chart 4.23:
Classification of Marital Status (%)
1.6 25.8
72.6
Married Unmarried Divorced/ Widow
INFERENCE: Table 4.23 & Chart 4.23 shows the marital status of the respondents, Out of
500 respondents, 129(26%) are Married, 363(73%) are Unmarried and 8(2%) are Divorced/
Widow. It shows the majority of the respondents are Unmarried.

Table 4.24:
Age Frequency Percent
18 to 30 385 77.0
31 to 40 73 14.6
41 to 50 28 5.6
More than 50 14 2.8
Total 500 100.0
Chart 4.24:
2.8
5.6
14.6
77
18 to 30 31 to 40 41 to 50 More than 50
INFERENCE: Table 4.24 & Chart 4.24 show the classification of age of respondents. Out
of 500 respondents, 385(77%) are in age group between 18 to 30, 73(15%) are between 31 to
40, 28(6%) are between 41 to 50 and 14(3%) are More than 50. It shows the majority of the
respondents are in the age group between 18 to 30.
Table 4.25:
Educational Qualification Frequency Percent
SSC 21 4.2
HSC 128 25.6
UG 259 51.8
PG 81 16.2
Vocational / technical courses 11 2.2
Total 500 100.0
Chart 4.25:
16.2 2.2
4.2
25.6
51.8
SSC HSC UG
PG Vocational / technical courses
INFERENCE: Table 4.25 & Chart 4.25shows the educational qualification of the
respondents. Out of 500 respondents, 21(4%) of the respondents are having Educational
Qualification as SSC, 128(26%) as HSC, 259(52%) as UG, 81(16%) as PG and 11(2%) as
Vocational / technical courses. It shows the majority of the respondents are UG.This table
summarizes the distribution of respondents based on their educational qualifications. The
majority have completed undergraduate (UG) education, followed by those with higher
secondary education (HSC). Smaller percentages have completed postgraduate (PG)
education, secondary school certificate (SSC), or vocational/technical courses.
Table 4.26:
Occupation
Occupation Frequency Percent
Government Service 6 1.2
Private Organisation 256 51.2
Self employed 58 11.6
Student 180 36.0
Total 500 100.0
Chart 4.26:
Occupation
Occupation
Government Service; 1.2
Student; 36
Private Organisation; 51.2
Self employed;
11.6
Government Service Private Organisation Self employed Student
INFERENCE: Table 4.26 & Chart 4.26 state the occupation of respondents. Out of 500
respondents, 6(1%) of the respondents belong to Government Service, 256(51%) to Private
Organisation, 58(12%) are Self-employed and 180(36%) are Student. It shows the majority of
the respondents are from Private Organisation.This table summarizes the distribution of
respondents based on their occupations. The majority are from private organizations,
followed by students. Smaller percentages are self-employed or employed in government
service.
Table 4.27:
Name of the Private Sector Bank
ICICI Bank 219 43.8
HDFC Bank 281 56.2
Total 500 100.0
Chart 4.27:
Name of the Private Sector Bank
Private Sector Bank
ICICI Bank; 43.8
HDFC Bank; 56.2
ICICI Bank HDFC Bank
INFERENCE: Table 4.27 & Chart 4.27 show the number of respondents having accounts in
ICICI Bank and HDFC Bank. Out of 500, 219(44%) of the respondents have accounts in
ICICI Bank and 281(56%) in HDFC Bank. It shows that majority of the respondents have
accounts with HDFC Bank.This table summarizes the distribution of respondents based on
their bank affiliation, with a majority associated with HDFC Bank.

Table 4.28:
Type of Account
Saving Account 403 80.6
Current Account 79 15.8
Any other 18 3.6
Total 500 100.0
Chart 4.28:
Type of Account
Type of Account
100% 80.6 15.8 3.6 100

90%
80%
70%
60%
50% 403 79 18 500
40%
30%
20%
10%
0%
Saving Account Current Account Any other Total
Frequency Percent
INFERENCE: Table 4.28 & Chart 4.28 focus on the type of account the respondents have.
Out of 500 respondents, 403(81%) of the respondents have Saving Account, 79(16%) have
Current Account and 18(4%) as Any other. It shows that majority of the respondents have
Saving Account.This table summarizes the distribution of respondents based on the type of
accounts they hold in the bank, with the majority having a saving account.
Table 4.29:
of the Bank’s ATM
Inconvenient 33 6.6
Neutral 162 32.4
Convenient 197 39.4
Total 500 100.0
Table 4.29:

100%
3.2 6.6 32.4 39.4 18.4 100
90%
80%
70%
60%
50%
16 33 162 197 92 500
40%
30%
20%
10%
0%
Frequency Percent
INFERENCE: Table 4.29 & Chart 4.29 analyse the satisfaction of customers towards the
Bank’s ATM. Out of 500 respondents, 16(3%) of the respondents Rate Bank’s ATM as
Highly Inconvenient, 33(7%) as Inconvenient, 162(32%) as Neutral, 197(39%) as Convenient
and 92(18%) as Highly Convenient. Majority of respondents had a convenient experience
with the Bank’s ATM.
Table 4.30:
Rate this bank Frequency Percent
Very poor 61 12.2
Poor 97 19.4
Average 123 24.6
Good 94 18.8
Excellent 125 25.0
Total 500 100.0
Chart 4.30:

100%
12.2 19.4 24.6 18.8 25 100
90%
80%
70%
60%
50%
61 97 123 94 125 500
40%
30%
20%
10%
0%
Very poor Poor Average Good Excellent Total
Frequency Percent
INFERENCE: Table 4.30 & Chart 4.30 analyse customer satisfaction during the process of
opening a bank account. Out of 500 respondents, 61(12%) of the respondents rate it as Very
poor, 97(19%) as Poor, 123(25%) as Average, 94(19%) as Good and 125(25%) as Excellent.
Majority of the respondents selected Excellent rating while opening bank account.This table
summarizes the distribution of ratings for the bank, with respondents providing ratings
ranging from "Very Poor" to "Excellent."
Table 4.31:
Banking Services Frequency Percent
Never 8 1.6
Rarely 39 7.8
Sometimes 124 24.8
Often 149 29.8
Always 180 36.0
Total 500 100.0
Chart 4.31:

100%
1.6 7.8 24.8 29.8 36 100
90%
80%
70%
60%
50%
8 39 124 149 180 500
40%
30%
20%
10%
0%
Never Rarely Sometimes Often Always Total
Frequency Percent
INFERENCE: Table 4.31 & Chart 4.31 showthe frequency of respondents’ usage of
banking services. Out of 500 respondents, 8(2%) of the respondents Never used banking
services, 39(8%) selectedRarely, 124(25%) as Sometimes, 149(30%) as Often and 18(36%)
as Always.This table summarizes the distribution of responses regarding the frequency of
using banking services, ranging from "Never" to "Always." The majority of respondents fall
into the "Always" category, indicating that they frequently use banking services.
Table 4.32:
Time taken Frequency Percent
Less than One hour 135 27.0
Less than half a day 113 22.6
One day 112 22.4
More than one day 140 28.0
Total 500 100.0
Chart 4.32:

transfer payments
100% 27 22.6 22.4 28 100

90%
80%
70%
60%
50% 135 113 112 140 500
40%
30%
20%
10%
0%
Less than One Less than half a One day More than one day Total
hour day
Frequency Percent
INFERENCE: Table 4.32 & Chart 4.32 showrespondents’ opinion on time taken to add a
beneficiary for NEFT/ IMPS transfer payments. Out of 500 respondents,135(27%) of the
respondents are of the opinion about the time taken is Less than One hour, 113(23%) as Less
than half a day, 112(22%) as One day and 140(28%) as More than one day.This table
summarizes the distribution of responses regarding the time taken, ranging from "Less than
One hour" to "More than one day." The data indicates different perceptions of the time taken
for the activity, with a notable portion of respondents falling into the "More than one day"
category.
Table 4.33:
Transaction limit per day Frequency Percent
20000 123 24.6
50000 138 27.6
More than 50000 239 47.8
Total 500 100.0
Chart 4.33:
100% 24.6 27.6 47.8 100

90%
80%
70%
60%
50% 123 138 239 500
40%
30%
20%
10%
0%
20000 50000 More than 50000 Total
Frequency Percent
INFERENCE: Table 4.33 & Chart 4.33 show the transaction limit per day. Out of 500
respondents,123(25%) of the respondents are of the opinion about the transaction limit as Rs.
20000, 138(28%) as Rs. 50000 and 239(48%) as More than Rs. 50000.This table summarizes
the distribution of responses regarding the transaction limits per day, with options including
20,000, 50,000, and more than 50,000. The majority of respondents fall into the "More than
50,000" category.
Table 4.34:
Level of Satisfaction Frequency Percent
Very Low 5 1.0
Low 22 4.4
Neutral 222 44.4
High 133 26.6
Very High 118 23.6
Total 500 100.0
Chart 4.34:

100%
1 4.4 44.4 26.6 23.6 100
90%
80%
70%
60%
50%
5 22 222 133 118 500
40%
30%
20%
10%
0%
Frequency Percent
INFERENCE: Table 4.34 & Chart 4.34measure the level of satisfaction with the transaction
limit. Out of 500 respondents, 5(1%) of the respondents’ is Very Low, 22(4%) is Low,
222(44%) is Neutral, 133(27%) is High and 118(24%) is Very High.This table summarizes
the distribution of responses regarding the level of satisfaction, ranging from "Very Low" to
"Very High." The majority of respondents fall into the "Neutral" category, indicating a
moderate level of satisfaction, while significant proportions are in the "High" and "Very
High" categories.
Table 4.35:
Option to increase transaction limit
Transaction limit Frequency Percent
Yes 274 54.8
No 226 45.2
Total 500 100.0
Chart 4.35:
100% 54.8 45.2 100
90%
80%
70%
60%
50% 274 226 500
40%
30%
20%
10%
0%
Yes No Total
Frequency Percent
INFERENCE: Table 4.35 & Chart 4.35 shows that out of 500 respondents, 274(55%) of the
respondents’ opinion about the bank having the option to increase transaction limit is Yes and
226(45%) is No. It means that majority of the respondents are in favour ot increase the
transaction limit.
Table 4.36:
Extent of Customer Satisfaction Frequency Percent
Very Low 65 13.0
Low 113 22.6
Neutral 137 27.4
High 121 24.2
Very High 64 12.8
Total 500 100.0
Chart 4.36:

100%
13 22.6 27.4 24.2 12.8 100
90%
80%
70%
60%
50%
65 113 137 121 64 500
40%
30%
20%
10%
0%
Frequency Percent
INFERENCE: Table 4.36 & Chart 4.36 represent the extent of customer Satisfaction with
reference to the bank. Out of 500 respondents, 65(13%) of the respondents are about the
extent of Customer Satisfaction as Very Low, 113(23%) as Low, 137(27%) as Neutral,
121(24%) as High and 64(13%) as Very High.This table summarizes the distribution of
responses regarding the extent of customer satisfaction, ranging from "Very Low" to "Very
High." The highest percentage of respondents fall into the "Neutral" category indicating a
moderate level of satisfaction while there are also notable proportions in the "Low" and
"High" categories.
Table 4.37:
Inconvenient 33 6.6
Neutral 162 32.4
Convenient 197 39.4
Total 500 100.0
Chart 4.37:

100%
3.2 6.6 32.4 39.4 18.4 100
90%
80%
70%
60%
50%
16 33 162 197 92 500
40%
30%
20%
10%
0%
Frequency Percent
INFERENCE: Table 4.37 & Chart 4.37 analyse the respondents’ opinion towards the
Bank’s ATM. shows that out of 500 respondents, 16(3%) of the respondents ‘opinion about
the Bank’s ATM as Highly Inconvenient, 33(7%) as Inconvenient, 162(32%) as Neutral,
197(39%) as Convenient and 92(18%) as Highly Convenient. Majority respondents had a
neutral opinion.
Table 4.38:
Yes 183 36.6
No 210 42.0
May be 107 21.4
Total 500 100.0
Chart 4.38:
100% 36.6 42 21.4 100

90%
80%
70%
60%
50% 183 210 107 500
40%
30%
20%
10%
0%
Yes No May be Total
Frequency Percent
INFERENCE: Table 4.38 & Chart 4.38 show the number of respondents that made a
complaint. Out of 500 respondents, 183(37%) of the respondents Made a Complaint as Yes,
210(42%) as No and 107(21%) as May be. This shows that majority of respondents did not
make a complaint.This table summarizes the distribution of respondents based on whether
they made a complaint. The largest group is those who did not make a complaint, followed by
those who made a complaint and those who may have possibly made a complaint.
Table 4.39:
Yes 220 44.0
No 181 36.2
May be 99 19.8
Total 500 100.0
Chart 4.39:
100% 44 36.2 19.8 100

90%
80%
70%
60%
50% 220 181 99 500
40%
30%
20%
10%
0%
Yes No May be Total
Frequency Percent
INFERENCE: Table 4.39 & Chart 4.39represent the number and percentage of respondents’
experience with reference to solving of complaint. Out of 500 respondents, 220(44%) of the
respondents, opinion about the complaints solved immediately is Yes, 181(36%) as No and
99(20%) as May be. Majority believe complaints were solved immediately.
Table 4.40:
Bank’s Ombudsman
Bank’s Ombudsman Frequency Percent

Yes 268 53.6
No 232 46.4
500 100.0
Total
Chart 4.40:
Bank’s Ombudsman
Bank’s Ombudsman
100% 53.6 46.4 100
90%
80%
70%
60%
50% 268 232 500
40%
30%
20%
10%
0%
Yes No Total
Frequency Percent
INFERENCE: Table 4.40 & Chart 4.40 show that out of 500 respondents, 268(54%) of the
respondents’ opinion whether the complaints ever reach till the necessity of the intervention
of the bank’s ombudsman is Yes and 232(46%) is No.This table summarizes the distribution
of responses regarding awareness or usage of the bank's ombudsman. The majority of
respondents (53.6%) are aware of or have used the bank's ombudsman, while 46.4% are not
aware of or have not used it.
Table 4.41:
Usage of Online Portal / Mobile Application
Bank Mobile Appl
ication Frequency Percent
Yes 348 69.6

No 152 30.4
Total 500 100.0
Chart 4.41:
100% 69.6 30.4 100
90%
80%
70%
60%
50% 348 152 500
40%
30%
20%
10%
0%
Yes No Total
Frequency Percent
INFERENCE: Table 4.41& Chart 4.41 show the number of respondents that use the online
portal of their bank. Out of 500 respondents, 348(70%) of the respondents selected Yes and
152(30%) selected No for the usage of the online portal of their bank. It means that majority
of the respondents uses the Online Portal of their banks.
Table 4.42:
Satisfied Frequency Percent
Highly Dissatisfied 147 29.4
Dissatisfied 162 32.4

Neutral 110 22.0
Satisfied 45 9.0
Highly Satisfied 36 7.2
Total 500 100.0
Chart 4.42:

100% 29.4 32.4 22 9 7.2 100
90%
80%
70%
60%
50% 147 162 110 45 36 500
40%
30%
20%
10%
0%
Highly Dissatis- Dissatisfied Neutral Satisfied Highly Satisfied Total
fied
Frequency Percent
INFERENCE: Table 4.42 & Chart 4.42 analyse the level of satisfaction of the online portal.
Out of 500 respondents,147(29%) of the respondents are Highly Dissatisfied,162(32%) are
Dissatisfied, 110(22%) are Neutral, 45(9%) are Satisfied and 36(7%) are Highly Satisfied. It
indicates that majority of respondents are dissatisfied with their bank’s online portal.
4.1.3 Weighted Average Means for Public Sector Banks
Table 4.43:
Weighted Average Mean for Bank Infrastructure
Sr.
Factors influential WAM
No. ED D N S ES
Seating arrangement 10 26 126 250 88

1.
for customers. 02 5.20 25.20 50 17.60 3.76
Cleanliness of the 08 09 109 279 95

2.
bank 1.60 1.80 21.80 55.80 19 3.89
Working hours of 19 28 135 251 67

3. 3.64
bank 3.80 5.60 27 50.20 13.40
Handling enquiries 23 35 151 215 76

4. 3.57
and grievances 4.60 07 30.20 43 15.20
30 32 148 221 69
5. Attitude of bank staff 3.53
06 6.40 29.60 44.20 13.80
Quality of interaction 21 26 152 215 86

6.
of staff 4.20 5.20 30.40 43 17.20 3.64
27 35 153 215 70
7. Response to call 3.53
5.40 07 30.60 43 14
11 20 144 253 72
8. Bank infrastructure 3.71
2.20 04 28.80 50.60 14.40
9. Attractive layout 12 37 145 222 84 3.66

2.40 7.40 29 44.40 16.80
19 42 136 221 82
Satisfaction with
10. 3.61
customer care 3.80 8.40 27.20 44.20 16.40
32 41 153 203 71
Time taken to sort out
11. 3.48
complain 6.40 8.20 30.60 40.60 14.20
16 32 136 232 84
Technological
12. 3.67
advancement 3.20 6.40 27.20 46.40 16.80
19 31 140 215 95
13. Updated systems 3.67
3.80 6.20 28 43 19
34 55 162 183 66
14. Parking Area 3.38
6.80 11 32.40 36.60 13.20
37 34 161 207 61
15. Lunch Timing 3.44
7.40 6.80 32.20 41.40 12.20
ED = Extremely Dissatisfied
D = Dissatisfied
N = Neutral
S = Satisfied
ES = Extremely Satisfied
WAM = Weighted Average Mean
INFERENCE: The above table 4.43 shows the Weighted Average Mean (WAM) for Bank
Infrastructure.The highest Weighted Average Mean has been observed for Cleanliness of the
bank with WAM of 3.89,Seating arrangement for customers with WAM of 3.76 and Bank
infrastructure with WAM of 3.71.On contrary, the lowest Weighted Average Mean has been
observed for the parking area with WAM of 3.38, Lunch Timing with WAM of 3.44 and time
taken to sort out complaints with WAM of 3.48.
Hence, from the above Weighted Average Mean, bank infrastructure can be
summarized as cleanliness of the bank, seating arrangement for customers and infrastructure.
Table 4.44:
Weighted Average Mean for Service Quality
Sr.
WA
No Factors influential ED D N S HS
M
.
8 12 127 228 125
1. Home Loan 1.6 25.4 45.6 3.90

2.40 25
0 0 0
9 22 205 209 55
2. Personal loan 1.8 41.8 3.56

4.40 41 11
0 0
7 10 201 212 70
3. Car loan 1.4 40.2 42.4 3.66

02 14
0 0 0
8 40 188 205 59
4. Gold loan 1.6 37.6 11.8 3.53

08 41
0 0 0
5. Overdraft 10 51 199 186 54

10.2 39.8 37.2 10.8 3.45
02
0 0 0 0
9 48 186 203 54
6. Mutual funds 1.8 37.2 40.6 10.8 3.49

9.60
0 0 0 0
7 51 172 195 75
7. RD and fixed deposits 1.4 10.2 34.4 3.56

39 15
0 0 0
7 44 200 179 70
8. Insurance products 1.4 35.8 3.52

8.80 40 14
0 0
08 15 219 191 67
9. Financial products (shares etc) 1.6 43.8 38.2 13.4 3.59

03
0 0 0 0
7 51 172 195 75
10. Credit card 1.4 10.2 34.4 3.56

39 15
0 0 0
10 51 199 186 54
11. Extended Credit limit 10.2 39.8 37.2 10.8 3.45

02
0 0 0 0
ED = Highly Dissatisfied
D = Dissatisfied
N = Neutral
S = Satisfied
HS = Highly Satisfied
INFERENCE: The above table 4.44 shows the Weighted Average Mean (WAM) for Service
Quality. The highest Weighted Average Mean has been observed for Home Loanwith WAM
of 3.90, Car loan with WAM of 3.66 and financial products (shares etc.) with WAM of
3.59.On the contrary, the lowest Weighted Average Mean has been observed for Extended
Credit Limit with WAM of 3.45, Overdraft with WAM of 3.45 and Mutual Funds with WAM
of 3.49. Hence, from the above Weighted Average Mean, Service Quality can be summarized
as Home Loan, Car loan and financial products (shares etc).
Table 4.45:
Weighted Average Mean for level of customer satisfaction related to Service Quality
Sr.
WA
No Factors influential HD D N S HS
M
.
9 15 144 229 103
1. Promptness of transaction 1.8 3.0 28.8 45.8 20.6

3.80
0 0 0 0 0
11 19 169 234 67
2. The service quality of the banker 2.2 3.8 33.8 46.8 13.4 3.65
0 0 0 0 0
14 21 175 210 80
3. Cooperation by the banker 2.8 4.2 3.64
0 0 35 42 16
4. Availability of power back-up generator/ 11 26 182 202 79 3.62

2.2 5.2 36.4 40.4 15.8
Inverter
0 0 0 0 0
15 31 175 207 72
5. Consultancy 6.2 41.4 14.4 3.58
03 0 35 0 0
10 29 202 191 68
6. Bank Guarantee 5.8 40.4 38.2 13.6 3.56
02 0 0 0 0
10 22 202 193 73
7. Home Banking 4.4 40.4 38.6 14.6 3.59
02 0 0 0 0
10 30 158 216 86
8. Mobile banking 31.6 43.2 17.2 3.68
02 06 0 0 0
13 23 144 234 86
9. Safe Custody 2.6 4.6 28.8 46.8 17.2 3.71
0 0 0 0 0
12 21 136 239 92
10. Security of transactions 2.4 4.2 27.2 47.8 18.4 3.76
0 0 0 0 0
D = Dissatisfied
N = Neutral
S = Satisfied
INFERENCE: The above table 4.45 shows the Weighted Average Mean (WAM) for level of
customer satisfaction related to Service Quality. The highest Weighted Average Mean has
been observed for Promptness of transactionwith WAM of 3.80, Security of transactionswith
WAM of 3.76 and Safe Custody with WAM of 3.71. On the contrary, the lowest Weighted
Average Mean has been observed for Bank Guarantee with WAM of 3.56, Consultancy with
WAM of 3.58 and Home Banking with WAM of 3.59.
Hence, from the above Weighted Average Mean, level of customer satisfaction
related to Service Quality can be depicted as Promptness of transaction, Security of
transactions and Safe Custody.
Table 4.46:
Weighted Average Mean for Customer Satisfaction
Sr.
WA
No Factors influential VP P A G E
M
.
11 16 120 257 96
1. Home banking services 51.4 19.2 3.82

2.20 3.20 24
0 0
08 19 107 261 105
2. Internet banking services 21.4 52.2 3.87

1.60 3.80 21
0 0
3. Phone banking services 14 27 146 216 97 3.71
2.80 5.40 29.2 43.2 19.4

0 0 0
11 24 121 224 120
4. ATM services 24.2 44.8 3.84

2.20 4.80 24
0 0
15 24 159 229 73
5. Credit care facility services 31.8 45.8 14.6 3.64

03 4.80
0 0 0
78 218 154 35 15
6. Customer Relationship 15.6 43.6 30.8 2.38

07 03
0 0 0
76 211 152 36 25
7. Staff behaviour towards customer 15.2 42.2 30.4 2.45

7.20 05
0 0 0
82 225 152 26 15
8. Electronic transfer (RTGS/NEFT) 16.4 30.4 2.33

45 5.20 03
0 0
99 208 158 21 14
9. Mobile app facility services 19.8 41.6 31.6 2.29

4.20 2.80
0 0 0
10. Timely transaction 102 218 139 29 12 2.26

20.4 43.6 27.8
5.80 2.40
0 0 0
84 204 163 35 14
11. Prompt services 16.8 40.8 32.6 2.38

07 2.80
0 0 0
68 198 178 29 27
12. Queue management 13.6 39.6 35.6 2.50

5.80 5.40
0 0 0
VP = Very Poor
P = Poor
A = Average
G = Good
E = Excellent
INFERENCE: The above table 4.46 shows the Weighted Average Mean (WAM) for
Customer Satisfaction. The highest Weighted Average Mean has been observed for Internet
banking serviceswith WAM of 3.87, ATM services with WAM of 3.84 and Home banking
services with WAM of 3.82. On the contrary, the lowest Weighted Average Mean has been
observed for Timely transaction with WAM of 2.26, Mobile app facility services with WAM
of 2.29 and Electronic transfer (RTGS/NEFT) with WAM of 2.33.
Hence, from the above Weighted Average Mean, it can be concluded that Customer
Satisfaction can be summarized as Internet banking services, ATM services and Home
banking services.
Table 4.47:
Weighted Average Mean for Grievance Handling
Sr. Factors influential SD D N A SA WA
No
M
.
94 210 91 59 46
1. Delay in services 18.8 18.2 11.8 2.51
0 42 0 0 9.20
67 221 114 62 36
2. Frequent printer issue 13.4 44.2 22.8 12.4 2.56
0 0 0 0 7.20
83 182 131 53 51
3. Unwell treatment of employees 16.6 36.4 26.2 10.6 10.2

2.61
0 0 0 0 0
85 188 110 76 41
4. Transaction related problems 37.6 15.2 2.60
17 0 22 0 8.20
78 181 106 68 67
5. Long queues 15.6 36.2 21.2 13.6 13.4 2.73
0 0 0 0 0
71 196 128 52 53
6. Document related issues 14.2 39.2 25.6 10.4 10.6 2.64
0 0 0 0 0
SD = Strongly Disagree
D = Disagree
N = Neutral
A = Agree
SA = Strongly Agree
Grievance Handling. The highest Weighted Average Mean has been observed Long
queueswith WAM of 2.73, Document related issueswith WAM of 2.64 and Unwell treatment
of employees with WAM of 2.61. On the contrary, the lowest Weighted Average Mean has
been observed for Delay in services with WAM of 2.51, frequent printer issue with WAM of
2.56 and Transaction related problems with WAM of 2.60.
Hence, from the above Weighted Average Mean, it can be concluded that Grievance
Handling can be summarized as long queues, Document related issues and Unwell treatment
of employees.
Table 4.48:
Weighted Average Mean for services availed through E-Banking
WA
Sr.
Factors influential EU U N I EI
No
M
.
144 199 134 13 10
1. NEFT / IMPS 28.8 39.8 26.8 2.6 2.09

2
0 0 0 0
102 234 146 14 4
2. RTGS 20.4 46.8 29.2 2.8 0.8 2.17
0 0 0 0 0
3. Pay My Dues & bills 129 187 144 29 11 2.21

25.8 37.4 28.8 5.8 2.2
0 0 0 0 0
118 230 130 17 5
4. Recharge 23.6 3.4 2.12

46 26 01
0 0
158 196 124 13 9
5. UPI 31.6 39.2 24.8 2.6 1.8 2.04
0 0 0 0 0
130 203 133 25 9
6. E. statements 40.6 26.6 1.8 2.16

26 05
0 0 0
129 212 144 8 7
7. Card Services 25.8 42.4 28.8 1.6 1.4 2.10
0 0 0 0 0
81 200 169 31 19
8. Forex 33.8 6.2 3.8 2.41

16.2 40
0 0 0
EU = Extremely Unimportant
U = Unimportant
N = Neutral
I = Important
EI = Extremely Important
services availed through E-Banking. The highest Weighted Average Mean has been observed
for Forexwith WAM of 2.41, Pay My Dues & bills with WAM of 2.21 and RTGS with WAM
of 2.17. On the contrary, the lowest Weighted Average Mean has been observed for UPI with
WAM of 2.04, NEFT / IMPS with WAM of 2.09, and Card Services with WAM of 2.10.
Hence, from the above Weighted Average Mean, it can be concluded that services
availed through E-Banking can be summarized as Forex, Pay My Dues & bills and RTGS.
Table 4.49:
Weighted Average Mean for kind of E-banking services
WA
Sr.
No
M
.
06 7 127 176 184
1. Saving Account 1.2 25.4 35.2 36.8 4.05

1.40
0 0 0 0
09 32 159 205 95
2. Recurring Deposit 1.8 31.8 3.69

6.40 41 19
0 0
03 20 200 190 87
3. Fixed Deposit 0.6 17.4 3.68

04 40 38
0 0
08 77 173 173 69
4. Loan 1.6 15.4 34.6 34.6 13.8 3.44
0 0 0 0 0
5. Inter-bank transfer 02 29 186 178 105

3.71
0.4 37.2 35.6
5.80 21
0 0 0
03 21 175 205 96
6. Intra-bank transfer 0.6 19.2 3.74

4.20 35 41
0 0
06 18 182 198 96
7. IMPS 1.2 36.4 39.6 19.2 3.72

3.60
0 0 0 0
04 30 144 220 102
8. Self-Transfer 0.8 28.8 20.4 3.77

06 44
0 0 0
07 11 167 173 142
9. Debit Card 1.4 33.4 34.6 28.4 3.86

2.20
0 0 0 0
12 36 179 188 85
10. Credit Card 2.4 35.8 37.6 3.60

7.20 17
0 0 0
U = Unimportant
N = Neutral
I = Important
services availed through E-Banking. The highest Weighted Average Mean is observed for
Saving Accountwith WAM of 4.05, Debit Cardwith WAM of 3.86 and Self-Transfer with
WAM of 3.77. On the contrary, the lowest Weighted Average Mean is observed for Loan
with WAM of 3.44, Credit Card with WAM of 3.60 and Fixed Deposit with WAM of 3.68.
Hence from the above Weighted Average Mean, it can be concluded that kind of E-
banking services can be summarized as Saving Account, Debit Card and Self-Transfer.
Table 4.50:
Weighted Average Mean for Value Added Services of E-Banking
WA
Sr.
Factors influential
No
EU U N I EI M
.
5 7 126 190 172
1. Mobile passbook 1.4 25.2 34.4 4.03
01 0 0 38 0
4 4 113 232 147
2. Change pin 0.8 0.8 22.6 46.4 29.4 4.03
0 0 0 0 0
4 5 134 208 149
3. Active SMS 0.8 26.8 41.6 29.8 3.99
0 01 0 0 0
8 22 149 208 113
4. Tax credit statement 1.6 4.4 29.8 41.6 22.6 3.79
0 0 0 0 0
5. National pension scheme 13 15 169 195 108 3.74

2.6 33.8 21.6
0 03 0 39 0
9 23 149 217 102
6. Digi- Locker 1.8 4.6 29.8 43.4 20.4 3.76
0 0 0 0 0
15 17 176 200 92
7. Refer a friend 3.4 35.2 18.4 3.67
03 0 0 40 0
13 22 146 223 96
8. Request tracker 2.6 4.4 29.2 44.6 19.2 3.73
0 0 0 0 0
14 17 150 200 119
9. Re-issue of card 2.8 3.4 23.8 3.79
0 0 30 40 0
U = Unimportant
N = Neutral
I = Important
INFERENCE: The above table 4.50 shows the Weighted Average Mean (WAM) for Value
Added Services of E-Banking. The highest Weighted Average Mean has been observed for
Mobile passbook with WAM of 4.03, Change pinwith WAM of 4.03 and Active SMS with
WAM of 3.99. On the contrary, the lowest Weighted Average Mean has been observed for
Refer a friend with WAM of 3.67, Request tracker with WAM of 3.73, and National pension
scheme with WAM of 3.74.
Hence, from the above Weighted Average Mean, it can be concluded that Value
Added Services of E-Banking can be summarized as Mobile passbook, Change pin and
Active SMS.
Table 4.51:
Weighted Average Mean for Services used in App
WA
Sr.
Factors influential
No
N R S O A M
.
18 27 107 213 135
1. Transaction search 21.4 42.6

3.84
3.60 5.40 0 0 27
11 31 101 236 121
2. Statement of account 20.2 47.2 24.2

3.85
2.20 6.20 0 0 0
27 44 128 195 106
3. Cheque book request 25.6 21.2

3.62
5.40 8.80 0 39 0
37 47 121 204 91
4. Doorstep banking 24.2 40.8 18.2

3.53
7.40 9.40 0 0 0
5. Cheque status enquiry 35 46 138 186 95
3.52
07 9.20 27.6 37.2 19
0 0
48 46 127 206 73
6. TDS enquiry 25.4 41.2 14.6

3.42
9.60 9.20 0 0 0
38 41 131 208 82
7. Upgrading account 26.2 41.6 16.4

3.51
7.60 8.20 0 0 0
45 58 119 188 90
8. Update nominee 11.6 23.8 37.6

3.44
09 0 0 0 18
56 53 118 188 85
9. Change in address 11.2 10.6 23.6 37.6

3.39
0 0 0 0 17
54 51 116 185 94
10. Transfer account to nearest branch 10.8 10.2 23.2 18.8

3.43
0 0 0 37 0
N = Never
R = Rarely
S = Sometimes
O = Often
A = Always
Services used in App. The highest Weighted Average Mean has been observed for Statement
of account with WAM of 3.85, Transaction searchwith WAM of 3.84 and Cheque book
request with WAM of 3.62. On the contrary, the lowest Weighted Average Mean has been
observed for TDS enquiry with WAM of 3.42, Transfer account to nearest branch with WAM
of 3.43 and Update nominee with WAM of 3.44.Hence, from the above Weighted Average
Mean, it can be concluded that Services used in App can be summarized as Statement of
account, Transaction search and Cheque book request.
Table 4.52:
Weighted Average Mean for Problems in E-Banking
WA
Sr.
Factors influential
No
VL L N H VH M
.
18 49 164 137 132
1. Scare of scam 3.6 32.8 27.4 26.4 3.63
0 9.80 0 0 0
26 46 217 145 66
2. Unwillingness to use 5.2 43.4 13.2 3.36
0 9.20 0 29 0
29 59 222 131 59
3. Lack of technological knowledge 5.8 11.8 44.4 26.2 11.8 3.26
0 0 0 0 0
34 64 184 140 78
4. Scared of using devices 6.8 12.8 36.8 15.6 3.33
0 0 0 28 0
5. Fear of cut off transaction in between 19 53 171 162 95
(Network issues) 3.52

3.8 10.6 34.2 32.4 19
0 0 0 0
20 42 187 170 81
6. Doubt of transaction security 37.4 16.2 3.5
04 8.40 0 34 0
VL = Very Low
L = Low
N = Neutral
H = High
VH = Very High
Problems in E-Banking.The highest Weighted Average Mean has been observed for Scare of
scamwith WAM of 3.63, Fear of cut off transaction in between (Network issues)with WAM
of 3.52 and Doubt of transaction security with WAM of 3.50. On the contrary, the lowest
Weighted Average Mean has been observed for Lack of technological knowledge with WAM
of 3.26, Scared of using devices with WAM of 3.33 and Unwillingness to use with WAM of
3.36.
Hence, from the above Weighted Average Mean, it can be concluded that Problems in
E. Banking can be summarized as Scare of scam, Fear of cut off transaction in between
(Network issues) and Doubt of transaction security.
Table 4.53:
Weighted Average Mean for Overall Performance of Banking Services
WA
Sr.
Factors influential HI I N S HS
No
M
.
1. Overall Bank Management 5 16 109 229 141
3.97
01 3.2 21.8 45.8 28.2
0 0 0 0
4 21 102 263 110
2. Overall Quality of Online transaction 0.8 4.2 20.4 52.6

22 3.91
0 0 0 0
8 23 118 241 110
3. Overall Customer Satisfaction 1.6 4.6 23.6 48.2 3.84

22
0 0 0 0
15 27 110 239 109
4. Overall Grievance Handling 5.4 47.8 21.8

03 22 3.8
0 0 0
13 26 127 234 100
5. Overall Bank Image 2.6 5.2 25.4 46.8 3.76

20
0 0 0 0
10 30 131 226 103
6. Overall Service Quality 26.2 45.2 20.6 3.76

02 06
0 0 0
11 25 132 231 101
7. Overall Bank Infrastructure 2.2 26.4 46.2 20.2 3.77

05
0 0 0 0
8. Overall attitude of staff 15 27 126 226 106 3.76
03 5.4 25.2 45.2 21.2

0 0 0 0
11 25 124 229 111
9. User-friendly transactions 2.2 24.8 45.8 22.2 3.81

05
0 0 0 0
10 32 105 230 123
10. Assurance of safety and security 6.4 24.6 3.85

02 21 46
0 0
HI = Highly Insignificant
I = Insignificant
N = Neutral
S = Significant
HS = Highly Significant
INFERENCE: The above table 4.53 shows the Weighted Average Mean (WAM) for Overall
Performance of Banking Services.The highest Weighted Average Mean has been observed
for Overall Bank Managementwith WAM of 3.97, Overall Quality of Online transactionwith
WAM of 3.91 and Assurance of safety and security with WAM of 3.85. On the contrary, the
lowest Weighted Average Mean has been observed for Overall Bank Image with WAM of
3.76, Overall Service Quality with WAM of 3.76 and Overall attitude of staff with WAM of
3.77.
Hence, from the above Weighted Average Mean, it can be concluded that Overall
Performance of Banking Services can be summarized as Overall Bank Management, Overall
Quality of Online transaction and Assurance of safety and security.
4.1.4 Weighted Average Means for Private Sector Banks:
Table 4.54:
Weighted Average Mean for Bank Infrastructure
WA
Sr.
Factors influential
No
ED D N S ES M
.
7 16 92 208 177
1. Seating arrangement for customers. 1.4 3.2 18.4 41.6 35.4 4.06
0 0 0 0 0
6 11 72 271 140
2. Cleanliness of the bank 1.2 2.2 14.4 54.2 4.06
0 0 0 0 28
5 21 127 218 129
3. Working hours of bank 4.2 25.4 43.6 25.8 3.89
01 0 0 0 0
5 28 102 228 137
4. Handling enquiries and grievances 5.6 20.4 45.6 27.4

3.93
01 0 0 0 0
8 26 112 221 133
5. Attitude of bank staff 1.6 5.2 22.4 44.2 26.6 3.89
0 0 0 0 0
9 22 104 231 134
6. Quality of interaction of staff 1.8 4.4 20.8 46.2 26.8 3.92
0 0 0 0 0
7. Response to call 10 32 113 203 142 3.87

6.4 22.6 40.6 28.4
02 0 0 0 0
6 22 115 203 154
8. Bank infrastructure 1.2 4.4 40.6 30.8 3.95
0 0 23 0 0
7 21 121 216 135
9. Attractive layout 1.4 4.2 24.2 43.2 3.9
0 0 0 0 27
12 27 114 209 138
10. Satisfaction with customer care 2.4 5.4 22.8 41.8 27.6 3.87
0 0 0 0 0
6 36 126 192 140
11. Time taken to sort out complain 1.2 7.2 25.2 38.4 3.85
0 0 0 0 28
8 24 100 222 146
12. Technological advancement 1.6 4.8 44.4 29.2 3.95
0 0 20 0 0
6 24 107 223 140
13. Updated systems 1.2 4.8 21.4 44.6 3.93
0 0 0 0 28
14. Parking Area 22 48 134 193 103 3.61
4.4 9.6 26.8 38.6 20.6

0 0 0 0 0
9 28 147 195 121
15. Lunch Timing 1.8 5.6 29.4 24.2 3.78
0 0 0 39 0
ED = Extremely Dissatisfied
D = Dissatisfied
N = Neutral
S = Satisfied
ES = Extremely Satisfied
INFERENCE: The above table 4.54 shows the Weighted Average Mean (WAM) for Bank
Infrastructure.The highest Weighted Average Mean has been observed for Seating
arrangement for customers with WAM of 4.06, Cleanliness of the bankwith WAM of 4.06,
Bank infrastructure with WAM of 3.95 and Technological advancement with WAM of 3.95.
On the contrary, the lowest Weighted Average Mean has been observed for Parking Area
with WAM of 3.61, Lunch Timing, 3.78 and Time taken to sort out complain with WAM of
3.85.
Hence, from the above Weighted Average Mean, it can be concluded that Bank
Infrastructure can be summarized as seating arrangement for customers, Cleanliness of the
bank, Bank infrastructure and Technological advancement.
Table 4.55:
Weighted Average Mean for Service Quality
WA
Sr.
Factors influential HD D N S HS
No
M
.
1. Home Loan 21 12 113 228 126 3.85
4.2 22.6 45.6 25.2
2.40
0 0 0 0
33 22 174 209 62
2. Personal loan 6.6 34.8 41.8 12.4 3.49

4.40
0 0 0 0
7 10 199 212 72
3. Car loan 1.4 39.8 42.4 14.4 3.66

02
0 0 0 0
24 40 171 205 60
4. Gold loan 4.8 34.2 3.47

8 41 12
0 0
11 51 195 186 57
5. Overdraft 2.2 10.2 37.2 11.4 3.45

39
0 0 0 0
11 48 181 203 57
6. Mutual funds 2.2 36.2 40.6 11.4 3.49

9.60
0 0 0 0
12 51 167 195 75
7. RD and fixed deposits 2.4 10.2 33.4 3.54

39 15
0 0 0
8. Insurance products 15 44 192 179 70 3.49
03 8.80 38.4 35.8 14

0 0
13 15 214 191 67
9. Financial products (shares etc) 2.6 42.8 38.2 13.4 3.57

03
0 0 0 0
12 51 167 195 75
10. Credit card 2.4 10.2 33.4 3.54

39 15
0 0 0
18 51 191 186 54
11. Extended Credit limit 3.6 10.2 38.2 37.2 10.8

3.41
0 0 0 0 0
HD = Highly Dissatisfied
D = Dissatisfied
N = Neutral
S = Satisfied
INFERENCE: The above table 4.55 shows the Weighted Average Mean (WAM) for Service
Quality. The highest Weighted Average Mean has been observed for Home Loanwith WAM
of 3.85, Car loan with WAM of 3.66 and Financial products (shares etc) with WAM of 3.57.
On the contrary, the lowest Weighted Average Mean has been observed for Extended Credit
limit with WAM of 3.41, Overdraft with WAM of 3.45 and Gold loan with WAM of 3.47
Hence, from the above Weighted Average Mean, it can be concluded that Service
Quality can be summarized as Home Loan, Car loan and financial products (shares etc.).
Table 4.56:
Weighted Average Mean for level of customer satisfaction related to Service Quality
WA
Sr.
Factors influential HD D N S HS
No
M
.
6 5 79 230 180
1. Promptness of transaction 1.2 15.8

01 46 36 4.15
0 0
4 11 130 237 118
2. The service quality of the banker 0.8 2.2 47.4 23.6

26 3.91
0 0 0 0
5 12 166 207 110
3. Cooperation by the banker 2.4 33.2 41.4

01 22 3.81
0 0 0
6 10 177 207 100

Availability of power back-up generator/
4. 1.2 35.4 41.4
Inverter 02 20 3.77
0 0 0
7 13 197 189 94
5. Consultancy 1.4 2.6 39.4 37.8 18.8 3.7
0 0 0 0 0
6 14 185 194 101
6. Bank Guarantee 1.2 2.8 38.8 20.2

37 3.74
0 0 0 0
7. Home Banking 6 15 203 168 108
3.71
1.2 03 40.6 33.6 21.6
0 0 0 0
9 12 165 179 135
8. Mobile banking 1.8 2.4 35.8

33 27 3.84
0 0 0
6 12 121 241 120
9. Safe Custody 1.2 2.4 24.2 48.2

24 3.91
0 0 0 0
9 14 96 254 127
10. Security of transactions 1.8 2.8 19.2 50.8 25.4

3.95
0 0 0 0 0
D = Dissatisfied
N = Neutral
S = Satisfied
INFERENCE: The above table 4.56 shows the Weighted Average Mean (WAM) for level of
customer satisfaction related to Service Quality. The highest Weighted Average Mean has
been observed for Promptness of transaction with WAM of 4.15, Security of transactionswith
WAM of 3.95 and Safe Custody with WAM of 3.91. On the contrary, the lowest Weighted
Average Mean has been observed for Consultancy with WAM of 3.7, Home Banking with
WAM of 3.71, Bank Guarantee with WAM of 3.74.
Hence, from the above Weighted Average Mean, it can be concluded that level of
customer satisfaction related to Service Quality can be depicted as Promptness of transaction,
Security of transactions and Safe Custody.

Table 4.57:
Weighted Average Mean for Customer Satisfaction
WA
Sr.
Factors influential VP P A G E
No
M
.
6 2 99 212 181
1. Home banking services 19.8 42.4 36.2 4.12

1.20 0.40
0 0 0
6 4 66 239 185
2. Internet banking services 13.2 47.8 4.19

1.20 0.80 37
0 0
12 11 138 182 157
3. Phone banking services 27.6 36.4 31.4 3.92

2.40 2.20
0 0 0
4 19 78 242 157
4. ATM services 15.6 48.4 31.4 4.06

0.80 3.80
0 0 0
5 35 146 185 129
5. Credit care facility services 29.2 25.8 3.8

01 07 37
0 0
110 194 109 59 28
6. Customer Relationship 38.8 21.8 11.8

22 5.60 2.4
0 0 0
7. Staff behaviour towards customer 113 174 136 54 23 2.4

22.6 34.8 27.2 10.8
4.60
0 0 0 0
116 176 159 24 25
8. Electronic transfer (RTGS/NEFT) 23.2 35.2 31.8 2.33

4.80 05
0 0 0
143 160 138 31 28
9. Mobile app facility services 28.6 27.6 2.28

32 6.20 5.60
0 0
144 199 92 38 27
10. Timely transaction 28.8 39.8 18.4 2.21

7.60 5.40
0 0 0
110 174 123 54 39
11. Prompt services 34.8 24.6 10.8 2.48

22 7.80
0 0 0
101 175 160 34 30
12. Queue management 20.2 2.43

35 32 6.80 06
0
VP = Very Poor
P = Poor
A = Average
G = Good
E = Excellent
Customer Satisfaction. The highest Weighted Average Mean has been observed for Internet
banking serviceswith WAM of 4.19, Home banking services with WAM of 4.12 and ATM
services with WAM of 4.06. On the contrary, the lowest Weighted Average Mean has been
observed for Timely transaction with WAM of 2.21, Mobile app facility services with WAM
of 2.28, Electronic transfer (RTGS/NEFT) with WAM of 2.33.
Hence, from the above Weighted Average Mean, it can be concluded that Customer
Satisfaction can be summarized as Internet banking services, home banking services and
ATM services.
Table 4.58:
Weighted Average Mean for Grievance Handling
WA
Sr.
Factors influential SD D N A SA
No
M
.
119 178 66 66 71
1. Delay in services 23.8 35.6 13.2 13.2 14.2 2.58
0 0 0 0 0
115 159 96 73 57
2. Frequent printer issue 31.8 19.2 14.6 11.4 2.6

23
0 0 0 0
99 139 130 79 53
3. Unwell treatment of employees 19.8 27.8 15.8 10.6 2.7

26
0 0 0 0
4. Transaction related problems 92 163 91 83 71 2.76
18.4 32.6 18.2 16.6 14.2

0 0 0 0 0
85 166 103 73 73
5. Long queues 33.2 20.6 14.6 14.6 2.77

17
0 0 0 0
97 173 80 79 71
6. Document related issues 19.4 34.6 15.8 14.2 2.71

16
0 0 0 0
SD = Strongly Disagree
D = Disagree
N = Neutral
A = Agree
SA = Strongly Agree
INFERENCE: The above table 4.58 shows the Weighted Average Mean (WAM)
forGrievance Handling. The highest Weighted Average Mean has been observed Long
queueswith WAM of 2.77, Transaction related problemswith WAM of 2.76 and Document
related issues with WAM of 2.71. On the contrary, the lowest Weighted Average Mean has
been observed as Delay in services with WAM of 2.58, frequent printer issue with WAM of
2.6 and Unwell treatment of employees with WAM of 2.7.
Hence, from the above Weighted Average Mean, it can be concluded that Grievance
Handling can be summarized as long queues, Transaction related problems and Document
related issues.
Table 4.59:
Weighted Average Mean for services availed through E-Banking
Sr. Factors influential EU U N I EI WA
No
.
M
175 151 90 29 55
1. NEFT / IMPS 30.2 2.28

35 18 5.80 11
0
137 169 109 57 28
2. RTGS 27.4 33.8 21.8 11.4 5.6 2.34
0 0 0 0 0
148 160 117 34 41
3. Pay My Dues & bills 29.6 23.4 8.2 2.32

32 6.80
0 0 0
151 164 114 43 28
4. Recharge 30.2 32.8 22.8 5.6

8.60 2.27
0 0 0 0
176 143 87 55 39
5. UPI 35.2 28.6 17.4 7.8 2.28

11
0 0 0 0
149 164 107 50 30
6. E-statements 29.8 32.8 21.4 2.30

10 06
0 0 0
7. Card Services 163 147 115 40 35 2.27

32.6 29.4
23 08 07
0 0
94 165 146 53 42
8. Forex 18.8 29.2 10.6 8.4 2.57

33
0 0 0 0
U = Unimportant
N = Neutral
I = Important
INFERENCE: The above table 4.59 shows the Weighted Average Mean (WAM) forservices
availed through E-Banking. The highest Weighted Average Mean has been observed for
Forexwith WAM of 2.57, RTGS with WAM of 2.34 and Pay My Dues & bills with WAM of
2.32. On the contrary, the lowest Weighted Average Mean has been observed as Recharge
with WAM of 2.27, Card Services with WAM of 2.27 and UPI with WAM of 2.28.
Hence, from the above Weighted Average Mean, it can be concluded that services
availed through E-Banking can be summarized as Forex, RTGS and Pay My Dues & bills.
Table 4.60:
Weighted Average Mean for kind of E-banking services
Sr.
WA
No Factors influential EU U N I EI
M
.
4 ... 129 130 237
1. Saving Account 0.8 25.8 47.4 4.19

... 26
0 0 0
2. Recurring Deposit 26 31 123 206 114 3.7

5.2 24.6 41.2 22.8
6.20
0 0 0 0
10 19 198 167 106
3. Fixed Deposit 39.6 33.4 21.2 3.68

02 3.80
0 0 0
13 66 168 163 90
4. Loan 2.6 13.2 33.6 32.6 3.5

18
0 0 0 0
8 26 159 162 145
5. Inter-bank transfer 1.6 31.8 32.4 3.82

5.20 29
0 0 0
8 41 158 166 127
6. Intra-bank transfer 1.6 31.6 33.2 3.73

8.20 25.4
0 0 0
6 10 145 202 137
7. IMPS 1.2 40.4 27.4 3.91

02 29
0 0 0
6 17 158 174 145
8. Self-Transfer 1.2 31.6 34.8 3.87

3.40 29
0 0 0
9. Debit Card 7 1 139 164 189

1.4 27.8 32.8 37.8 4.05
0.20
0 0 0 0
9 29 149 181 132
10. Credit Card 1.8 29.8 36.2 26.4 3.80

5.80
0 0 0 0
U = Unimportant
N = Neutral
I = Important
INFERENCE: The above table 4.60 shows the Weighted Average Mean (WAM) for kind of
E-banking services. The highest Weighted Average Mean has been observed for Saving
Accountwith WAM of 4.19, Debit Cardwith WAM of 4.05 and IMPS with WAM of 3.91. On
the contrary, the lowest Weighted Average Mean can be observed as Loan with WAM of 3.5,
Fixed Deposit with WAM of 3.68 and Recurring Deposit with WAM 3.7.
Hence, from the above Weighted Average Mean, it can be concluded that kind of E-
banking services can be summarized as Saving Account, Debit Card and IMPS.
Table 4.61:
Weighted Average Mean for Value Added Services of E-Banking
WA
Sr.
No
M
.
4 3 81 155 257
1. Mobile passbook 0.8 0.6 16.2 51.4 4.32

31
0 0 0 0
2. Change pin 2 2 81 232 183

0.4 0.4 16.2 46.4 36.6 4.18
0 0 0 0 0
2 3 115 177 203
3. Active SMS 0.4 0.6 35.4 40.6

23 4.15
0 0 0 0
6 18 112 207 157
4. Tax credit statement 1.2 3.6 22.4 41.4 31.4 3.98
0 0 0 0 0
12 17 142 187 142
5. National pension scheme 2.4 3.4 28.4 37.4 28.4 3.86
0 0 0 0 0
9 20 136 205 130
6. Digi-Locker 1.8 27.2 3.85

04 41 26
0 0
12 23 161 179 125
7. Refer a friend 2.4 4.6 32.2 35.8 3.76

25
0 0 0 0
12 18 147 189 134
8. Request tracker 2.4 3.6 29.4 37.8 26.8 3.83
0 0 0 0 0
9. Re-issue of card 8 10 130 195 157 3.97

1.6 31.4
02 26 39
0 0
U = Unimportant
N = Neutral
I = Important
INFERENCE: The above table 4.61 shows the Weighted Average Mean (WAM) forValue
Added Services of E-Banking. The highest Weighted Average Mean has been observed for
Mobile passbook with WAM of 4.32, Change pinwith WAM of 4.18 and Active SMS with
WAM of 4.15. On the contrary the lowest Weighted Average Mean has been observed as
Refer a friend with WAM as 3.76, Request tracker with WAM 3.83 and Digi-locker with
WAM 3.85.
Hence, from the above Weighted Average Mean, it can be concluded that Value
Active SMS.
Table 4.62:
Weighted Average Mean for Services used in App
WA
Sr.
Factors influential N R S O A
No
M
.
15 16 69 161 239
1. Transaction search 13.8 32.2 47.8 4.19

03 3.20
0 0 0
2. Statement of account 15 24 68 238 155 3.99
03 4.80 13.6 47.6 31

0 0
22 38 128 187 125
3. Cheque book request 25.6 37.4 3.71

4.40 7.60 25
0 0
41 51 98 202 108
4. Doorstep banking 10.2 19.6 40.4 21.6 3.57

8.20
0 0 0 0
42 44 116 171 127
5. Cheque status enquiry 23.2 34.2 25.4 3.59

8.40 8.80
0 0 0
44 58 116 185 97
6. TDS enquiry 11.6 23.2 19.4 3.47

8.80 37
0 0 0
51 48 118 182 101
7. Upgrading account 10.2 23.6 36.4 20.2

9.60 3.47
0 0 0 0
49 58 109 179 105
8. Update nominee 11.6 21.8 35.8 3.47

9.80 21
0 0 0
9. Change in address 51 57 119 155 118 3.46

10.2 11.4 23.8 23.6
31
0 0 0 0
63 40 105 166 126
10. Transfer account to nearest branch 12.6 33.2 25.2 3.45

08 21
0 0 0
N = Never
R = Rarely
S = Sometimes
O = Often
A = Always
INFERENCE: The above table 4.62 shows the Weighted Average Mean (WAM)
forServices used in App. The highest Weighted Average Mean has been observed for
Transaction search with WAM of 4.19, Statement of account with WAM of 3.99 and Cheque
book request with WAM of 3.71. On the contrary, the lowest Weighted Average Mean has
been observed for Transfer account to nearest branch with WAM 3.45, Change in
addresswith WAM 3.46, Update nominee with WAM 3.47, Upgrading account with WAM
3.47 and TDS enquiry with WAM of 3.47.
Hence from the above Weighted Average Mean, it can be concluded that Services
used in App can be summarized as Transaction search, Statement of account and Cheque
book request.
Table 4.63:
Weighted Average Mean for Problems in E-Banking
WA
Sr.
Factors influential VL L N H VH
No
M
.
1. Scare of scam 33 40 148 123 156 3.66
6.6 08 29.6 24.6 31.2

0 0 0 0
33 52 203 148 64
2. Unwillingness to use 6.6 10.4 40.6 29.6 12.8 3.32
0 0 0 0 0
43 61 200 109 87
3. Lack of technological knowledge 8.6 12.2 21.8 17.4 3.27

40
0 0 0 0
49 64 163 147 77
4. Scared of using devices 9.8 12.8 32.6 29.4 15.4 3.28
0 0 0 0 0
39 52 144 163 102

Fear of cut off transaction in between
5. 7.8 10.4 28.8 32.6 20.4 3.47
(Network issues)
0 0 0 0 0
45 38 165 168 84
6. Doubt of transaction security 33.6 16.8 3.42

09 7.60 33
0 0
VL = Very Low
L = Low
N = Neutral
H = High
VH = Very High
Problems in E. Banking. The highest Weighted Average Mean has been observed for Scare of
scamwith WAM of 3.66, Fear of cut off transaction in between (Network issues)with WAM
of 3.47 and Doubt of transaction security with WAM of 3.42. On the contrary, the lowest
Weighted Average Mean has been observed for Lack of technological knowledge with WAM
of 3.27, Scared of using devices with WAM of 3.28, Unwillingness to use with WAM of
3.32.
Hence, from the above Weighted Average Mean, it can be concluded that Problems in
E. Banking can be summarized as Scare of scam, Fear of cut off transaction in between
(Network issues) and Doubt of transaction security.
Table 4.64:
Weighted Average Mean for Overall Performance of Banking Services
WA
Sr.
Factors influential HI I N S HS
No
M
.
5 6 80 157 252
1. Overall Bank Management 1.2 31.4 50.4 4.29

01 16
0 0 0
6 6 69 254 165
2. Overall Quality of Online transaction 1.2 1.2 13.8 50.8 4.13

33
0 0 0 0
6 7 107 203 177
3. Overall Customer Satisfaction 1.2 1.4 21.4 40.6 35.4 4.08
0 0 0 0 0
8 19 86 199 188
4. Overall Grievance Handling 1.6 3.8 17.2 39.8 37.6 4.08
0 0 0 0 0
5. Overall Bank Image 8 10 103 192 187 4.08

1.6 20.6 38.4 37.4
02
0 0 0 0
7 18 86 210 179
6. Overall Service Quality 1.4 3.6 17.2 35.8 4.07

42
0 0 0 0
8 11 93 207 181
7. Overall Bank Infrastructure 1.6 2.2 18.6 41.4 36.2 4.08
0 0 0 0 0
10 10 99 201 180
8. Overall attitude of staff 19.8 40.2 4.06

02 02 36
0 0
10 12 85 202 191
9. User-friendly transactions 2.4 40.4 38.2 4.1

02 17
0 0 0
7 15 76 196 206
10. Assurance of safety and security 1.4 15.2 39.2 41.2 4.16
03
0 0 0 0
HI = Highly Insignificant
I = Insignificant
N = Neutral
S = Significant
HS = Highly Significant
INFERENCE: The above table 4.64 shows the Weighted Average Mean (WAM) forOverall
Performance of Banking Services. The highest Weighted Average Mean has been observed
for Overall Bank Managementwith WAM of 4.29, and Assurance of safety and security with
WAM of 4.16 and Overall Quality of Online transaction with WAM of 4.13. On the contrary,
the lowest Weighted Average Mean has been observed for Overall attitude of staff with
WAM of 4.06, Overall Service Quality with WAM of 4.07, and Overall Bank Infrastructure
with WAM of 4.08.
Hence, from the above Weighted Average Mean, it can be concluded that Overall
Performance of Banking Services can be summarized as Overall Bank Management,
Assurance of safety and security and Overall Quality of Online transaction.
4.1.5 Grand Mean for Public Sector Banks:
Table 4.65:
Grand Mean for customer satisfaction related to branch facility [Infrastructure]
Item description Mean
Seating arrangement for customers. 3.76
Cleanliness of the bank 3.89
Working hours of bank 3.64
Handling enquiries and grievances 3.57
Attitude of bank staff 3.53
Quality of interaction of staff 3.64
Response to call 3.53
Bank infrastructure 3.71
Attractive layout 3.66

Satisfaction with customer care 3.61
Time taken to sort out complain 3.48
Technological advancement 3.67
Updated systems 3.67
Parking Area 3.38
Lunch Timing 3.44
Grand Mean 3.61
INFERENCE:The above table 4.65 shows the Mean forcustomer satisfaction related to
branch facility [Infrastructure].It can be observed from the table, the value of Grand Mean is
3.61.
Table 4.66:
Grand Mean for satisfaction related to Service Quality
Promptness of transaction 3.80
The service quality of the banker 3.65
Cooperation by the banker 3.64
Availability of power back-up generator/ Inverter 3.62
Consultancy 3.58
Bank Guarantee 3.56
Home Banking 3.59
Mobile banking 3.68
Safe Custody 3.71
Security of transactions 3.76
Grand Mean 3.65
INFERENCE:The above table 4.66 shows the Mean forsatisfaction related to Service
Quality. It can be observed from the table, the value of Grand Mean for satisfaction related to
Service Quality is 3.65.
Table 4.67:
Grand Mean for banking services relating to Satisfaction [Customer Satisfaction]
Home banking services 3.82
Internet banking services 3.87
Phone banking services 3.71
ATM services 3.84
Credit care facility services 3.64

Customer Relationship 2.38
Staff behaviour towards customer 2.45
Electronic transfer (RTGS/NEFT) 2.33
Mobile app facility services 2.29
Timely transaction 2.26
Prompt services 2.38
Queue management 2.50
Grand Mean 2.96
INFERENCE: The above table 4.67 shows the Mean forbanking services relating to your
satisfaction [Customer Satisfaction]. It can be observed from the table, the value of Grand
Mean for Customer Satisfaction is 2.96
Table 4.68:
Grand Mean for Banking services relating to E-Banking
Saving Account 4.05
Recurring Deposit 3.69
Fixed Deposit 3.68
Loan 3.44
Inter-bank transfer 3.71

Intra-bank transfer 3.74
IMPS 3.72
Self-Transfer 3.77
Debit Card 3.86
Credit Card 3.60
Grand Mean 3.73
INFERENCE:The above table 4.68 shows the Mean forbanking services relating to E-
Banking. It can be observed from the table, the value of Grand Mean for E-Banking as 3.73.
Table 4.69:
Grand Mean for Banking services relating to Grievance Handling
Delay in services 2.51
Frequent printer issue 2.56
Unwell treatment of employees 2.61
Transaction related problems 2.60
Long queues 2.73
Document related issues 2.64
Grand Mean 2.60

INFERENCE:The above table 4.69 shows the Mean forbanking services relating to
Grievance Handling. It can be observed from the table, the value of Grand Mean for
Grievance Handling is 2.60.
Table 4.70:
Grand Mean for customer satisfaction in the performance of public sector banks
Overall Bank Management 3.97
Overall Quality of Online transaction 3.91
Overall Customer Satisfaction 3.84
Overall Grievance Handling 3.80
Overall Bank Image 3.76
Overall Service Quality 3.76
Overall Bank Infrastructure 3.77
Overall attitude of staff 3.76
User-friendly transactions 3.81
Assurance of safety and security 3.85
Grand Mean 3.82
INFERENCE:The above table 4.70 shows the Mean forcustomer satisfaction in the
performance of public sector banks. It can be observed from the table, the value of Grand
Mean for performance of public sector banks is 3.82.
Table 4.71:
Summary of Grand Mean for Public Sector Banks
Variables Grand Mean Rank
Customer Satisfaction for branch facility [Infrastructure] 3.61 4

Customer Satisfaction for Service Quality 3.65 3
Customer Satisfaction for Banking services [Customer 2.96 5
Satisfaction]
E-Banking 3.73 2
Grievance Handling 2.60 6
Customer Satisfaction in the Performance 3.82 1
INFERENCE:The above table 4.71 shows the Summary of Grand Mean for Public Sector
Banks. The variables taken into consideration are Customer Satisfaction for branch facility
[Infrastructure], Customer Satisfaction for Service Quality, Customer Satisfaction for
Banking services [Customer Satisfaction], E-Banking, Grievance Handling and Customer
Satisfaction in the Performance. Based on the summary, it can be inferred that the highest
Grand Mean has been observed for Customer Satisfaction in the Performance with Grand
Mean of 3.82.
4.1.6 Grand Mean for Private Sector Banks:
Table 4.72:
Grand Mean for customer satisfaction related to branch facility [Infrastructure]

Parking Area 3.61
Lunch Timing 3.78
Grand Mean 3.90
INFERENCE:The above table 4.72 shows the Mean forcustomer satisfaction related to
branch facility [Infrastructure].It can be observed from the table, the value of Grand Mean for
customer satisfaction related to branch facility [Infrastructure] is 3.90.
Table 4.73:
Grand Mean for satisfaction related to Service Quality
Consultancy 3.70
Bank Guarantee 3.74
Home Banking 3.71
Mobile banking 3.84
Safe Custody 3.91
Grand Mean 3.85
INFERENCE:The above table 4.73 shows the Mean forsatisfaction related to Service
Quality. It can be observed from the table, the value of Grand Mean for satisfaction related to
Service Quality is 3.85.
Table 4.74:
Grand Mean for banking services relating to Satisfaction [Customer Satisfaction]

ATM services 4.06
Grand Mean 3.05
INFERENCE: The above table 4.74 shows the Mean forbanking services relating to your
satisfaction [Customer Satisfaction].It can be observed from the table, the value of Grand
Mean for Customer Satisfaction as 3.05.
Table 4.75:
Grand Mean for Banking services relating to E-Banking
Saving Account 4.19
Fixed Deposit 3.68

Loan 3.50
IMPS 3.91
Self-Transfer 3.87
Debit Card 4.05
Credit Card 3.80
Grand Mean 3.82
INFERENCE: The above table 4.75 shows the Mean forbanking services relating to E-
Banking. It can be observed from the table, the value of Grand Mean for E-Banking is 3.82.
Table 4.76:
Grand Mean for Banking services relating to Grievance Handling
Long queues 2.77

Grand Mean 2.69
INFERENCE:The above table 4.76 shows the Mean forbanking services relating to
Grievance Handling. It can be observed from the table, the value of Grand Mean for
Grievance Handling as 2.69.
Table 4.77:
Grand Mean for customer satisfaction in the performance of Private Sector Banks
Grand Mean 4.11

INFERENCE:The above table 4.77 shows the Mean forcustomer satisfaction in the
performance of Private sector banks. It can be observed from the table, the value of Grand
Mean for performance of Private sector banks as 4.11.
Table 4.78:
Summary of Grand Mean for Private Sector Banks
Variables Grand Mean Rank
Customer Satisfaction for branch facility [Infrastructure] 3.90 2
Customer Satisfaction for Banking services [Customer 3.05 5
Satisfaction]
E-Banking 3.82 4
INFERENCE:The above table 4.78 shows the Summary of Grand Mean for Private Sector
Banks. The variables taken into consideration are Customer Satisfaction for branch facility
Satisfaction in the Performance. Based on the summary, it can be inferred that the highest
Grand Mean has been observed for Customer Satisfaction in the Performance.
4.1.7 Consolidated table for Grand Mean for both Public Sector Banks &Private
Sector Banks
Table 4.79:
Consolidated table for Grand Mean for both Public Sector Banks &Private Sector
Banks
Public Sector Private Sector
Attributes for measuring Customer Banks Banks
Satisfaction Grand Grand
Rank Rank
Mean Mean
Customer Satisfaction for branch facility
3.61 4 3.90 2
[Infrastructure]
Customer Satisfaction for Service Quality 3.65 3 3.85 3
Customer Satisfaction for Banking services

2.96 5 3.05 5
[Customer Satisfaction]
E-Banking 3.73 2 3.82 4
Grievance Handling 2.60 6 2.69 6
Customer Satisfaction in the Performance 3.82 1 4.11 1
INFERENCE:The above table 4.79 shows the consolidated data for Grand Mean for both
Public Sector Banks &Private Sector Banks. The variables taken into consideration are
Customer Satisfaction for branch facility [Infrastructure], Customer Satisfaction for Service
Quality, Customer Satisfaction for Banking services [Customer Satisfaction], E-Banking,
Grievance Handling and Customer Satisfaction in the Performance.
Based on the ranks of Grand Mean for both Public Sector Banks & Private Sector
Banks, it can be inferred that there is a significant difference in the level of Customer
Satisfactionwith reference Infrastructure, Service Quality, Customer Satisfaction, E-Banking,
Grievance Handling and Overall Performance. It can be concluded with the help of the above
table that the satisfaction level forPrivate Sector Banks is higher than Public Sector Banks.
4.2 Inferential Analysis:
The hypothesis testing has been done by using Chi-Square test, Kolmogorov
Smirnov Test, Mann Whitney U test and Multiple Regression.
 Chi-Square Test is called as goodness-of-fit test. It is used to test how observed
frequencies differ from expected frequencies. It is a non-Parametric test of hypothesis.
 Kolmogorov Smirnov Test has been used to test how the percentage of cumulative
observed frequencies differ from percentage of cumulative expected frequencies. It is
a Non-Parametric test of hypothesis.
 Mann Whitney U Test has been used to test the significance difference between the
two independent samples. It is a Non-Parametric test of hypothesis.
 Multiple Regression Analysis has been used to test the effect of independent
variables on dependent variable. It can also have termed as a tool for predictive
validity.
 Reliability Analysis has been used to test the internal consistency among the
variables. Factor Analysis is a multi-variate analysis used to test the variables
simultaneously.
 Structural Equation Modelling (SEM) has been used to test the equations of
multiple regressions simultaneously.
4.2.1 Reliability Analysis for both Public Sector Banks and Private Sector Banks:
The reliability analysis is an effective instrument for testing the internal consistency
among the research variables included in the research process. It places more significance in
maintaining and developing an upper limit on its validity. A measurement that lacks
reliability will also lack validity. If the scale of reliability is close to 1, then it can be
concluded that the variables are having high internal consistency and hence they are suitable
for conducting factor analysis.

Table(s) determining the Reliability Analysis for customer satisfaction related to branch
facility [Infrastructure]:
In the present study, reliability has been tested for factors to determine Investment
Avenues as a main component for women teachers. CronbachAlpha(α) is designed as a
model for reliability analysis and it can be considered as a measure of internal consistency.
The closer the α to 1, the greater the internal consistency of items in the instrument being
assessed.
Table 4.80:
Cronbach’s Alpha (α) for factors to determine customer satisfaction related to branch
facility [Infrastructure]
Item description Cronbach’s Alpha ( α )

Parking Area 0.848
Lunch Timing 0.846
Overall Cronbach’s Alpha (α) 0.838
INFERENCE:The above table 4.80 shows the Cronbach’s Alpha (α) for factors to determine
customer satisfaction related to branch facility [Infrastructure]. It can be observed from the
table, the value of Alpha (α) is 0.838. The value Cronbach’s Alpha (α) is more than 0.8 and
hence we can conclude that the variables are having high internal consistency for factors to
determine customer satisfaction related to branch facility[Infrastructure].
Table 4.81:
Cronbach’s Alpha (α) for satisfaction related to Service Quality
Consultancy 0.918
Bank Guarantee 0.816
Home Banking 0.815
Mobile banking 0.815

Safe Custody 0.818
INFERENCE: The above table 4.81 shows the Cronbach’s Alpha (α) for satisfaction related
to Service Quality. It can be observed from the table, the value of Alpha (α) is 0.827. The
value Cronbach’s Alpha (α) is more than 0.8 and hence we can conclude that the variables are
having high internal consistency for satisfaction related to Service Quality.
Table 4.82:
Cronbach’s Alpha (α) for Banking services relating to your satisfaction [Customer
Satisfaction]
ATM services 0.834

INFERENCE:The above table 4.82 shows the Cronbach’s Alpha (α) forbanking services
relating to your satisfaction [Customer Satisfaction].It can be observed from the table, the
value of Alpha (α) is 0.840. The value Cronbach’s Alpha (α) is more than 0.8 and hence we
can conclude that the variables have high internal consistency for Customer Satisfaction.
Table 4.83:
Cronbach’s Alpha (α) for Banking services relating to E-Banking
Item description Cronbach’s Alpha (α)
Saving Account 0.822
Fixed Deposit 0.828
Loan 0.821
IMPS 0.825
Self-Transfer 0.824
Debit Card 0.825
Credit Card 0.826

INFERENCE: The above table 4.83 shows the Cronbach’s Alpha (α) forbanking services
relating to E-Banking. It can be observed from the table, the value of Alpha (α) is 0.825. The
value Cronbach’s Alpha (α) is more than 0.8 and hence we can conclude that the variables
have high internal consistency for E-Banking.
Table 4.84:
Cronbach’s Alpha (α) for banking services relating to Grievance Handling
Long queues 0.878
INFERENCE:The above table 4.84 shows the Cronbach’s Alpha (α) forbanking services
relating to Grievance Handling. It can be observed from the table, the value of Alpha (α) is
0.875. The value Cronbach’s Alpha (α) is more than 0.8 and hence we can conclude that the
variables are having high internal consistency for Grievance Handling.

Table 4.85:
Cronbach’s Alpha (α) for customer satisfaction in the performance of Public & Private
Sector Banks
INFERENCE:The above table 4.85 shows the Cronbach’s Alpha (α) forcustomer
satisfaction in the performance of public & private sector banks. It can be observed from the
table, the value of Alpha (α) is 0.844. The value Cronbach’s Alpha (α) is more than 0.8 and
hence we can conclude that the variables are having high internal consistency for long term
Strategies necessitate in managing the investments effectively.
Table 4.86:
Summary of Reliability Statistics for Customer Satisfaction for both Public Sector
Banks and Private Sector Banks
Variables Cronbach’s Alpha (α)
Customer Satisfaction for branch facility [Infrastructure] 0.838
Customer Satisfaction for Service Quality 0.827
Customer Satisfaction for Banking services [Customer 0.840
Satisfaction]
E-Banking 0.825
Grievance Handling 0.875
Customer Satisfaction in the Performance 0.844
INFERENCE:The above table 4.86 shows the Summary of Reliability Statistics for
Customer Satisfaction for both Public Sector Banks and Private Sector Banks. Based on the
summary of reliability, it can be inferred that the value of Cronbach’s Alpha (α) found to be
more than 0.8 which shows the internal consistency for all the variables included in the
research consisting of Customer Satisfaction for branch facility[Infrastructure], Customer
Satisfaction for Service Quality, Customer Satisfaction for Banking services[Customer
Satisfaction], E-Banking, Grievance Handling and Customer Satisfaction in the Performance.
4.2.2Test of Validity for both Public Sector Banks and Private Sector Banks:
In the present study, Multiple Regression Analysis of Bank Infrastructure, Service
Quality, Customer Satisfaction, E Banking, and Grievance Handling on Overall Satisfaction
has been tested as a tool of validity. Co-linearity has been used an inbuilt measure to
determine the effect of independent variables called as predictors on dependent variable
called as criterion.
Table 4.87:
Test of Validity [Model Summary]
R Adjusted R
Model R Square Square Std. Error of the Estimate
1 0.639 0.409 0.403 5.685
INFERENCE:The above table 4.87 shows a summary of Test of Validity for both Public
Sector Banks and Private Sector Banks. The dependent variable is also called as Criterion is:
Overall Satisfaction. The independent variables are also called as Predictors [Bank
Infrastructure, Service Quality, Customer Satisfaction, E Banking, and Grievance Handling]
The multiple correlation coefficients, R, can also be viewed as the simple correlation
coefficient r, which lies between 0 to 1. The value close to 1 indicates high strength of
association.
The R2 is called as coefficient multiple determination. The strength of association in
multiple regression is measured by the square of the multiple correlation coefficient, R 2,
which is also called the coefficient of the multiple determination. The R 2 value of a model
tells you what percentage of the variation in the dependent variable is explained by all the
independent variables in the model. The dependent variable’s total variation can be measured
by its variance. In this model, the value of R square is .426. It shows that 42.6% of the total
variance in the dependent variable Investment Behaviour is explained by all the independent
variables[Bank Infrastructure, Service Quality, Customer Satisfaction, E Banking, and
Grievance Handling] of the model.
Table 4.88:
ANOVA
Description Sum of Squares Df Mean Square F Sig.
Regression 11037.992 5 2207.598 68.298
0.000
Residual 15967.486 494 32.323 -

-
Total 27005.478 499 - - -
INFERENCE:The significance level less than 5% indicates that all the variables included in
this model are significant. The significance level of the F-statistic (less than 5%) then the
independent variables [Bank Infrastructure, Service Quality, Customer Satisfaction, E
Banking, and Grievance Handling] is highly influential in explaining the variation in the
dependent variable Overall Satisfaction.
Table 4.89:
Standardized and Unstandardized Regression Coefficients
Variables T Sig.
Tolerance VIF
(Constant) 0.549 0.043
Bank Infrastructure 7.265 0.000 0.712 1.404
Service Quality 4.713 0.000 0.565 1.770
Customer Satisfaction 1.566 0.018 0.937 1.067
E Banking 8.076 0.000 0.758 1.319
Grievance Handling 1.747 0.031 0.852 1.174

INFERENCE:The significance levels less than 5% indicate that null hypothesis can be
rejected. It can be inferred that independent variables [Bank Infrastructure, Service Quality,
Customer Satisfaction, E Banking, and Grievance Handling] are influential on Overall
Satisfaction.
The tolerance more than 5% and Variance Inflation Factor (VIF) less than 10
indicates that the effect of independent variables on dependent variable can be determined
effectively. VIF is a measure of multi-co-linearity in the set of multiple regression
variables.When VIF less than 10, It can be further revealed as there is no multicollinearity.
Multicollinearity is the occurrence of high intercorrelations among two or more independent
variables in a multiple regression model. The high intercorrelations among the independent
variables fail to assess the effect on dependent variable accurately. When there is no
multicollinearity among the independent variables, the predictor validity is also high. The
predictor validity is an indication for establishing the causal relationship among the variables
included in the research.

CHAPTER 5 – HYPOTHESIS TESTING
In the quest for knowledge, uncertainty often shrouds our perceptions of reality.
Whether exploring the natural world, deciphering human behaviour, or evaluating the
effectiveness of interventions, the scientific community relies on a structured approach to
distinguish fact from conjecture. At the heart of this approach lies hypothesis testing, a
powerful tool that enable researchers to make informed judgments, validate claims, and
uncover the hidden patterns that govern our world.
The changing world of contemporary banking makes it important to conduct an
empirical investigation into the elements impacting customer satisfaction, since it is a crucial
indicator of both service quality and institutional performance. In the midst of comparing
customer satisfaction in public and private sector banks in Mumbai's bustling city, this
chapter explores the field of hypothesis testing.In the ongoing pursuit of better understanding
and serving their customers, financial institutions find that hypothesis testing is a useful
technique for methodically assessing the subtle differences in customer experiences across
these many banking sectors. Through careful formulation and examination of hypotheses,
prudent application of statistical methods, and diligent examination of the resulting data, this
chapter presents a thorough understanding of the dynamics of consumer satisfaction.With the
use of this analytical tool, we hope to identify the important factors that lead to satisfaction
gaps and add to the conversation on how banks in this vibrant city might improve their
services.
In order to derive meaningful inferences from sample data and decide whether or not
their hypotheses are valid, researchers must conduct hypothesis testing. It aids in the
establishment of an organized and impartial method for assessing the evidence supporting or
refuting a certain claim.
This chapter aims to provide the understanding of evaluation and validation of
hypotheses. At its core, the process involves formulating two competing hypotheses: the null
hypothesis (H0) that posits no effect or relationship, and the alternative hypothesis (HA) that
proposes a specific effect or relationship.
5.1 The following hypothesis has been tested by using Chi Square Test:
Hypothesis 1:
Null Hypothesis (H10):There is no significant difference in Customer Satisfaction for Public

sector banks and private sector banks.
Alternative Hypothesis(H1A):There is a significant difference in Customer Satisfaction for

Public sector banks and Private sector banks.
Table 5.1: Observed & Expected values for Customer Satisfaction for Public sector
banks:
Dimension Observed Expected Residual
Highly Dissatisfied 49 100 -51
Dissatisfied 140 100 40
Neutral 197 100 97
Satisfied 75 100 -25
Highly Satisfied 39 100 -61
Total 500
The table 5.1 depicts the residual values[difference between the observed and expected
values] for Customer Satisfaction for Public sector banks.
Table 5.1(a): Chi-Square Analysis for Customer Satisfaction for Public sector banks
Description Customer Satisfaction for Public

sector banks
(df: degrees of Chi-Square 179.560 freedom, Sig:

Significance level)
Df 4
Sig .000
Table 5.2: Observed & Expected values for Customer Satisfaction for Private sector
banks
Dimension Observe Expected Residual

d
HighlyDissatisfied 65 100 -35
Dissatisfied 113 100 13
Neutral 137 100 37
Satisfied 121 100 21
Highly Satisfied 64 100 -36
Total 500
The table 5.2 depicts the residual values for Customer Satisfaction for Private sector banks.
Table 5.2(a): Chi-Square Analysis for Customer Satisfaction for Private sector banks
Customer Satisfaction for Private

Description
sector banks
Chi-Square 45.000
Df 4
Sig .000
(df: degrees of freedom, Sig: Significance level)
INFERENCE: From the table 5.2(a), it shows that the significance (0.000) is less than the
assumed value (0.05). So we reject H10. This means that the there is a significant difference
in Customer Satisfaction for Public sector banks and Private sector banks.
5.2 The following hypothesis is tested by using Kolmogorov Smirnov Test:
Hypothesis 2:
Null Hypothesis (H20):There is no significance difference in Customers’ preferences
Alternative Hypothesis(H2A):There is a significant difference in Customers’ preferences

Table 5.3: Kolmogorov Smirnov Test for Customers’ preferences for Public Sector
Banks
Item description Kolmogorov Smirnov Value Sig. Level

Home Loan 5.91 .000
Personal loan 5.283 .000
Car loan 5.156 .000
Gold loan 5.441 .000
Overdraft 5.538 .000
Mutual funds 5.133 .000
RD and fixed deposits 4.646 .000
Insurance products 5.192 .000
Financial products (shares etc) 5.18 .000
Credit card 4.646 .000
Extended Credit limit 5.532 .000
INFERENCE:The highest value of Kolmogorov Smirnov Value has been observed for
Home Loanas 5.91. The second highest value has been observed for Overdraftas 5.538. The
third highest value has been observed for Gold loan as 5.441.It can be inferred that
Customers’ preferences for Public Sector Banks can be summarized as Home Loan,
Overdraft and Gold loan.
Table 5.4: Kolmogorov Smirnov Test for Customers’ preferences for Private sector
banks
Item description Kolmogorov Smirnov Value Sig. Level

Home Loan 5.644 .000
Personal loan 5.238 .000
Car loan 5.178 .000
Gold loan 5.226 .000
Overdraft 4.777 .000
Mutual funds 5.227 .000
RD and fixed deposits 5.027 .000
Insurance products 4.994 .000
Financial products (shares etc) 5.548 .000
Credit card 5.027 .000
Extended Credit limit 4.777 .000
INFERENCE:The highest value of Kolmogorov Smirnov Value has been observed for
Home Loanas 5.644. The second highest value has been observed for financial products
(shares etc.) as 5.548. The third highest value has been observed for Personal loan as 5.441.
It can be inferred that Customers’ preferences for Public Sector Banks can be summarized as
Home Loan, Overdraft and Gold loan.The significance value less than 5% reveals that null
hypothesis can be rejected. There is a significant difference in Customers’ preferences
between Public Sector Banks and Private sector banks.
5.3 The following hypothesis is tested by using Chi-Square Test:
Hypothesis 3:
Null Hypothesis (H30):Service Quality is not highly influential on Customer Satisfaction for
both Public Sector Banks and Private Sector Banks
Alternative Hypothesis(H3A):Service Quality is highly influential on Customer Satisfaction

for both Public Sector Banks and Private Sector Banks
Table 5.5: Chi-Square values for Service Quality in Public Sector Banks
Item description Chi Square Value Sig. Level
Promptness of transaction 340.92 .000
The service quality of the banker 382.88 .000
Cooperation by the banker 317.62 .000

309.66 .000
Inverter
Consultancy 298.44 .000
Bank Guarantee 328.5 .000
Home Banking 339.66 000
Mobile banking 300.16 000
Safe Custody 335.86 000
Security of transactions 346.66 000
INFERENCE:The highest value of Chi-Square value has been observed for the service
quality of the banker as 382.88. The second highest value has been observed for Security of
transactions as 346.66. The third highest value of Chi Square has been observed for
Promptness of transaction as 340.92.It can be inferred that Service Quality for Public Sector
banks can be summarized as the service quality of the banker Security of transactions and
Promptness of transaction.
Table 5.6: Chi-Square values for Service Quality in Private Sector Banks
Item description Chi Square Value Sig. Level
Promptness of transaction 416.02 .000
The service quality of the banker 371.3 .000

Cooperation by the banker 326.74 .000

343.14 .000
Inverter
Consultancy 335.84 .000
Bank Guarantee 322.94 .000
Home Banking 313.58 000
Mobile banking 277.16 000
Safe Custody 373.02 000
Security of transactions 401.38 000
INFERENCE:The highest value of Chi-Square value has been observed for Promptness of
transaction as 416.02. The second highest value has been observed for Security of
transactions as 401.38. The third highest value of Chi Square has been observed for Safe
Custody as 373.02. It can be inferred that Service Quality for Private Sector banks can be
summarized as Promptness of transaction, Security of transactions and Safe Custody.
The significance value less than 5% reveals that null hypothesis can be rejected. It can be
inferred that Service Quality is highly influential on Customer Satisfaction for both Public
5.4 The following hypothesis has been tested by using Multiple Regression Analysis:
In the present study, an effect of Bank Infrastructure, Service Quality, Customer
Satisfaction, E Banking, and Grievance Handling on Overall Satisfaction has been tested
using Multiple Regression Analysis for both Public Sector Banks and Private Sector Banks.
Multiple Regression Analysis been used an inbuilt measure to determine the effect of
independent variables called as predictors on dependent variable called as criterion.
Hypothesis 4:
Null Hypothesis (H40):There is no significant effect of Bank Infrastructure, Service Quality,
Customer Satisfaction, Grievance handling and E-Banking Services on Customer Satisfaction
for both Public Sector Banks and Private Sector Banks
Alternative Hypothesis(H4A):There is a significant effect of Bank Infrastructure, Service

Quality, Customer Satisfaction, Grievance handling and E-Banking Services on Customer
Satisfaction for both Public Sector Banks and Private Sector Banks.
Public Sector Banks
Table 5.7: Model Summary of Public Sector Banks
R Adjusted R Std. Error of the

Model R Square Square Estimate
1 0.611 0.374 0.367 5.93
INFERENCE: The dependent variable is also called as Criterion which is Dependent

Variable: Overall Satisfaction. The independent variables are also called as Predictors[Bank
Infrastructure, Service Quality, Customer Satisfaction, E Banking, and Grievance Handling].
The multiple correlation coefficient, R, can also be viewed as the simple correlation
association.
The R2 is called as coefficient multiple determination. The strength of association in

multiple regression is measured by the square of the multiple correlation coefficient, R 2,
which is also called the coefficient of the multiple determination. The R 2 value of a model
tells you what percentage of the variation in the dependent variable is explained by all the
independent variables in the model. The dependent variable’s total variation can be measured
by its variance. In this model, the value of R square is .374. It shows that 37.4% of the total
variance in the dependent variable Overall Satisfaction is explained by all the independent
variables[Bank Infrastructure, Service Quality, Customer Satisfaction, E Banking, and
Grievance Handling] of the model for Public Sector Banks.
Table 5.8: ANOVA of Public Sector Banks

Description Sum of Df
Squares Mean Square F Sig.
Regression 10370.554 5 2074.111 58.983 0.000
Residual 17371.246 494 35.164
Total 27741.8 499
INFERENCE: The significance level less than 5% indicates that all the variables included in
this model are significant. The significance level of the F-statistic is (less than 5%) than the
independent variables[Bank Infrastructure, Service Quality, Customer Satisfaction, E
Banking, and Grievance Handling] are highly influential in explaining the variation in the
dependent variable Overall Satisfaction for Public Sector Banks.
Table 5.9:Standardized and Unstandardized Regression Coefficients for Public Sector

Banks
Unstandardized Standardized
Variables t Sig.
Coefficients Coefficients
Std. Error
B
Beta
(Constant) 4.371 4.506 0.97 0.003
Bank
0.138 0.034 0.201 4.081 0.000
Infrastructure
Service Quality 0.251 0.055 0.229 4.554 0.000
Customer
-0.022 0.088 -0.01 -0.25 0.018
Satisfaction
E Banking 0.434 0.047 0.373 9.341 0.000
Grievance
0.114 0.052 0.087 2.178 0.023
Handling
INFERENCE:The unstandardized (B) coefficients are the coefficients of the estimated
regression model.The beta coefficient tells you how strongly is the independent variables are
associated with the dependent variable. It is equal to the correlation between the two
variables.
The significance levels less than 5% indicate that null hypothesis can be rejected. It
can be inferred that independent variables [Bank Infrastructure, Service Quality, Customer
Satisfaction, E Banking, and Grievance Handling] are influential on Overall Satisfaction. The
highest value of standardized coefficient(beta) has been observed for E Banking, Service
Quality and Bank Infrastructure. It can be further inferred that E Banking, Service Quality
and Bank Infrastructure are highly significant for Overall Satisfaction. The negative value of
Customer Satisfaction indicates that Public Sector Banks should improve the customer
Satisfaction through providing value added services.
Private Sector Banks
Table 5.10: Model Summary of Private Sector Banks
R Adjusted R Std. Error of the

Model R Square Square Estimate
1 0.639 0.409 0.403 5.685
INFERENCE: The dependent variable is also called as Criterion which is Dependent

Variable: Overall Satisfaction. The independent variables are also called as Predictors[Bank
Infrastructure, Service Quality, Customer Satisfaction, E Banking, and Grievance Handling].
The multiple correlation coefficient, R, can also be viewed as the simple correlation
association.The R2 is called as coefficient multiple determination. The strength of association
in multiple regression is measured by the square of the multiple correlation coefficient, R 2,
which is also called the coefficient of the multiple determination
The R2 value of a model tells you what percentage of the variation in the dependent
variable is explained by all the independent variables in the model. The dependent variable’s
total variation can be measured by its variance. In this model, the value of R square is .409. It
shows that 40.9% of the total variance in the dependent variable Overall Satisfaction is
explained by all the independent variables[Bank Infrastructure, Service Quality, Customer
Satisfaction, E Banking, and Grievance Handling] of the model for Private Sector Banks.
Table 5.11: ANOVAof Private Sector Banks
Description Sum of df
Squares Mean Square F Sig.
Regression 11037.992 5 2207.598 68.298 0.000
Residual 15967.486 494 32.323 - -
Total 27005.478 499 - - -
INFERENCE: The significance level less than 5% indicates that all the variables included in
this model are significant. The significance level of the F-statistic is (less than 5%) than the
Banking, and Grievance Handling] are highly influential in explaining the variation in the
dependent variable Overall Satisfaction for Private Sector Banks.
Table 5.12:Standardized and Unstandardized Regression Coefficients for Private Sector

Banks
Unstandardized Standardized
Variables T Sig.
Coefficients Coefficients
Std. Error Value
B
Beta
(Constant) 1.513 2.754 0.549 0.039
Bank
0.214 0.029 0.298 7.265 0.000
Infrastructure
Service Quality 0.247 0.052 0.217 4.713 0.000
Customer
0.072 0.046 0.056 1.566 0.024
Satisfaction
E Banking 0.36 0.045 0.321 8.076 0.000
Grievance
0.075 0.043 0.065 1.747 0.041
Handling
INFERENCE:The unstandardized (B) coefficients are the coefficients of the estimated
regression model.The beta coefficient tells you how strongly is the independent variables are
associated with the dependent variable. It is equal to the correlation between the two
variables.
highest value of standardized coefficient(beta) has been observed for E Banking, Bank
Infrastructure and Service Quality. It can be further inferred that E Banking, Bank
Infrastructure and Service Quality are highly significant for Overall Satisfaction for Private
Sector Banks.
5.5 The following hypothesis has been tested by using Mann Whitney U test:
Hypothesis 5:
Null Hypothesis (H50):There is no significant difference in the Overall performance between
Public sector banks and Private sector banks
Alternative Hypothesis(H5A):There is a significant difference in the Overall performance

between Public sector banks and Private sector banks
Table 5.13: Mann Whitney U Ranks for Public Sector Banks and Private Sector Banks
Sum of
Ranks for
Type of banks N Mean Rank Sig.
Overall
Performance
Public Sector Banks 500 440.35 220172.5
0.000
Private Sector Banks 500 560.66 280327.5
INFERENCE: The significance level less than 5% reveals that the null hypothesis can be
rejected. There is a significant difference in the Overall performance between Public sector
banks and Private sector banks. The mean ranks are higher for Private Sector Banks than
Public Sector Banks. It reveals that overall performance of Private Sector Banks is higher
than Public Sector Banks.
Factor Analysis for Service Quality for Public Sector Banks
Factor Analysis has been used to classify the Service Quality for Public Sector Banks. By
using Factor Analysis, we can summarise the components for Service Quality for Public
Sector Banks.
KMO and Bartlett’s Test of hypothesisfor Service Quality for Public Sector Banks:
KMO and Bartlett’s Test of hypothesis is an inbuilt statistical measure in Factor analysis. The
value ofKaiser-Meyer-Olkin Measure of Sampling Adequacy should be always more than 0.5
and the significance level should be less than 5%.
Table 5.14: KMO and Bartlett’s Test of hypothesis (for factor analysis)
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.932
Bartlett's Test of Sphericity – Value of Chi-Square 3307.567
Df 45
Sig .000
Source: Compiled from the questionnaire
(df: degrees of freedomSig: Significance Level)
INFERENCE:It can be seen from the table 2 that the significance (0.00) is less than the
assumed value (0.05). The value of KMO measure has been observed as 0.932 which was
more than 0.5. Based on this KMO measure, it can be revealed that the factor analysis for
data summarization is effective for identifying the components for Service Quality for Public
Sector Banks.
Table 5.14 (a): Communalities forService Quality for Public Sector Banks
Initia
Item Description Extraction
l
Promptness of transaction 1.000 0.697
The service quality of the banker 1.000 0.746
Cooperation by the banker 1.000 0.759
Availability of power back-up generator/ Inverter 1.000 0.651

Consultancy 1.000 0.634
Bank Guarantee 1.000 0.697
Home Banking 1.000 0.696
Mobile banking 1.000 0.744
Safe Custody 1.000 0.678
Security of transactions 1.000 0.795

Source: Compiled by the questionnaire
INFERENCE:Communality is the amount of variance a variable share with all the other
variables being considered. This is the proportion of variance explained by the common
factors.
Table 5.14 (b): Eigen Values explaining the Percentage of Variancefor Service Quality
for Public Sector Banks
Item Description Eigenvalues % of Variance

0.469 4.686
Inverter

Eigenvalues represents the total variance explained by each factor. The Eigen values more
than one decides the number of components.
Table 5.14 (c): Rotated Component Matrix (for deciding the number of factors)for
Service Quality for Public Sector Banks
Components
Item Description
1 2
0.725
Inverter
Consultancy 0.749
Home Banking 0.779
Safe Custody 0.765
INFERENCE:From the Table 5.14 (c) of Rotated Component Matrix for Service Quality for
Public Sector Banks, it can be seen that the two factors can be classified as follows:
Factor 1:
 Promptness of transaction
 Cooperation by the banker
 The service quality of the banker
 Consultancy
 Availability of power back-up generator/ Inverter
Factor 2:
 Security of transactions
 Bank Guarantee
 Home Banking
 Mobile banking
 Safe Custody
The factors are renamed for Service Quality for Public Sector Banks as follows:
Factor 1 – Promptness Factors
Factor 2 – Security Factors
From the Factor analysis it states that Promptness Factors and SecurityFactors are highly
significant in contributing to the Service Quality for Public Sector Banks.
Factor Analysis for Service Quality for Private Sector Banks:

Factor Analysis has been used to classify the Service Quality for Private Sector Banks. By
using Factor Analysis, we can summarise the components for Service Quality for Private
Sector Banks.
KMO and Bartlett’s Test of hypothesisfor Service Quality for Private Sector Banks:
KMO and Bartlett’s Test of hypothesis is an inbuilt statistical measure in Factor analysis. The
value ofKaiser-Meyer-Olkin Measure of Sampling Adequacy should be always more than 0.5
and the significance level should be less than 5%.
Table 5.15: KMO and Bartlett’s Test of hypothesis (for factor analysis)
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.936
Bartlett's Test of Sphericity – Value of Chi-Square 2779.505
Df 45
Sig .000
(df: degrees of freedom Sig: Significance Level)
INFERENCE: It can be seen from the table 2 that the significance (0.00) is less than the
assumed value (0.05). The value of KMO measure has been observed as 0.936 which was
more than 0.5. Based on this KMO measure, it can be revealed that the factor analysis for
data summarization is effective for identifying the components for Service Quality for Private
Sector Banks.
Table 5.15 (a): Communalities forService Quality for Private Sector Banks
Initia
Item Description Extraction
l
Availability of power back-up generator/ Inverter 1.000 0.58
INFERENCE:Communality is the amount of variance a variable share with all the other
variables being considered. This is the proportion of variance explained by the common
factors.
Table 5.15 (b): Eigen Values explaining the Percentage of Variancefor Service Quality
for Private Sector Banks
Item Description Eigenvalues Percentage of Variance


0.497 4.966
Inverter
INFERENCE:Eigenvalues represent the total variance explained by each factor. The Eigen
values more than one decides the number of components.
Table 5.15 (c): Rotated Component Matrix (for deciding the number of factors)for
Service Quality for Private Sector Banks
Components
Item Description
1 2
0.742
Inverter
Consultancy 0.751
Home Banking 0.798
Safe Custody 0.778
INFERENCE:From the Table of Rotated Component Matrix for Service Quality for Private
Sector Banks, it can be seen that the two factors can be classified as follows:
Factor 1:
 Consultancy
Factor 2:
 Home Banking
 Bank Guarantee
 Safe Custody
 Mobile banking
The factors are renamed for Service Quality for Private Sector Banks as follows:
Factor 1 – Service Factors
Factor 2 – Safety Factors
From the Factor analysis it states that Service Factors and SafetyFactors are highly significant
in contributing to the Service Quality for Private Sector Banks.
5.6 Structural Equation Modeling (SEM) for Overall Satisfaction for Public Sector
Banks:
Structural Equation Modeling (SEM) is an expansion of the general linear model

(GLM) that helps the researcher to test a set of regression equations simultaneously. In SEM,
independent variables are called as exogenous variables which are assumed to be measured
without error and dependent or mediating variables called as endogenous variables,
downstreamvariables.
SEM users represent relationships among observed and unobserved variables using
path diagrams. Ovals or circles represent latent variables, while rectangles or squares
represent measured variables. Residuals are always unobserved, so they are represented by
ovals or circles. The single arrow in the diagram indicates path and the double arrow
indicates covariances among the variables. The model used in SEM is recursive model.
In the diagram shown below, correlations and covariances are represented by
bidirectional arrows, which represent relationships without a clearly defined causal direction.
The dependent variable or endogenous variable for this study is Overall Satisfaction[OS]
which is represented by rectangle.
The independent variables or exogenous variables for this study are as follows:
Bank Infrastructure (BI), Service Quality (SQ), Customer Satisfaction (CD), E Banking (EB),
and Grievance Handling (GH).e1 is the error variances represented to develop SEM.
FIG 1: Unstandardized Estimates for Public Sector Banks

5.6.1 INFERENCE for unstandardized estimatesfor Public Sector Banks:
The values BI (.14), SQ (.25), CD (-.02), EB (.43) and GH (.11) are the unstandardized
estimates which indicates Bank Infrastructure(BI), Service Quality(SQ), Customer
Satisfaction (CD), E Banking(EB), and Grievance Handling(GH) for Public Sector Banks.
FIG 1(a): Standardized Estimates for Public Sector Banks
5.6.2 INFERENCE for standardized estimatesfor Public Sector Banks:
The values BI(.20), SQ(.23), CD(-.01), EB(.37) and GH(.09) are the standardized
Satisfaction(CD), E Banking(EB), and Grievance Handling(GH) for Public Sector Banks.
The highest values of standardized estimates have been observed for EB(.37),
SQ(.23)andBI(.20). It indicates that E Banking,Service Quality and Bank Infrastructure are
highly significant in Customer Satisfaction for Public Sector Banks. The values with CD
(-.01) and GH(.09) are having both negative impact and low impact on the Customer
Satisfaction for Public Sector Banks. Customer Satisfaction has to be enhanced and
Grievance handling has to be faster for improving customer satisfaction. E Banking, Service
Quality and Bank Infrastructure are the main components in the Customer Satisfaction for
Public Sector Banks.
In this model, the value .37 on Overall Satisfaction (OS) is R square. It shows that
37% of the total variance in the dependent variable have been explained by all the
Banking, and Grievance Handling]. Based on the standardized estimates, it can be revealed
that E Banking, Service Quality and Bank Infrastructure are highly influential in determining
the Overall Satisfaction for Public Sector Banks.
5.7 Structural Equation Modeling (SEM) for Overall Satisfaction for Private Sector
Banks:
The dependent variable or endogenous variable for this study Overall
Satisfaction[OS] which is represented by rectangle
The independent variables or exogenous variables for this study are as follows:
Bank Infrastructure (BI), Service Quality (SQ), Customer Satisfaction (CD), E Banking (EB),
and Grievance Handling (GH).e1 is the error variances represented to develop SEM.
FIG 2: Unstandardized Estimates for Private Sector Banks
5.7.1 INFERENCE for unstandardized estimatesfor Private Sector Banks:

The values BI(.21), SQ(.25), CD(.07), EB(.36) and GH(.07) are the unstandardized
Satisfaction(CD), E Banking(EB), and Grievance Handling(GH) for Private Sector Banks .
FIG 2(a): Standardized Estimates for Private Sector Banks
5.7.2 INFERENCE for standardized estimatesfor Private Sector Banks:

The values BI(.30), SQ(.22), CD(.06), EB(.32) and GH(.07) are the standardized
Satisfaction(CD), E Banking(EB), and Grievance Handling(GH) for Private Sector Banks.
The highest values of standardized estimates have been observed for EB(.32), BI(.30)
and SQ(.22). It indicates that E Banking,Bank Infrastructure and Service Quality are highly
significant in Customer Satisfaction for Private Sector Banks. The values with CD (.06) and
GH(.07) are both having low impact on the Customer Satisfaction for Private Sector Banks.
Customer Satisfaction has to be enhanced and Grievance handling has to be faster for
improving customer satisfaction. E Banking, Bank Infrastructure and Service Quality are the
main components in the Customer Satisfaction for Private Sector Banks.
In this model, the value .41 on Overall Satisfaction (OS) is R square. It shows that
41% of the total variance in the dependent variable have been explained by all the
Banking, and Grievance Handling]. Based on the standardized estimates, it can be revealed
that E Banking, Bank Infrastructure and Service Qualityare highly influential in determining
the Overall Satisfaction for Private Sector Banks.
5.8 Overall Comparison for Overall Satisfaction [Public Sector Banks and Private
Sector Banks]:
 E Banking, Service Quality and Bank Infrastructure are highly influential in
determining the Overall Satisfaction for Public Sector Banks
 E Banking, Bank Infrastructure and Service Qualityare highly influential in
determining the Overall Satisfaction for Private Sector Banks.
 In comparison with the Public Sector Banks, Customer Satisfaction and Grievance
Handling are better for Private Sector Banks.
5.9 Model Fit estimates for Overall Satisfaction [Public Sector Banks and Private Sector
Banks]:
 Model fit estimates determine the justification of the application of SEM model
 GFI termed as Goodness-of-Fit Index found to be one with standard value near to ≥
0.90 is acceptable.
 NFI termed as Normalized Fit Index found to be one with specified value > 0.90.
 IFI termed as Incremental Fit Index found to be one with default value ≥ 0.90.
 CFI termed as Comparative Fit Index found to be one with default value ≥ 0.90.
 The values obtained by Model fit estimates justified the application of SEM model
consisting of Bank Infrastructure, Service Quality, Customer Satisfaction, E Banking,
and Grievance Handling in determining the Overall Satisfaction for both Public
5.10 Overall Conclusion:

Structural Equation Modeling[SEM] is highly suitable for predicting the significance
of Bank Infrastructure, Service Quality, Customer Satisfaction, E Banking, and Grievance
Handling on the Overall Satisfaction for both Public Sector Banks and Private Sector Banks.
5.11 Summary:
Table 5.16: Summary table of Hypothesis
Hypothesis Statement Critical level & INFERENCE
Statistical test
Used
Hypothesis 1 The critical level or If the critical level or level of

level of significance significance is less than
Null Hypothesis
is set at 5%(0.05) 5%(0.05), null hypothesis is
(H1o):There is no significant rejected
Chi Square Test
difference in Customer
Null hypothesis is rejected
Satisfaction for Public sector Multiple Regression
banks and private sector banks There is a significant difference
Reliability Analysis
Alternative Hypothesis in Customer Satisfaction for
Structural Equation Public sector banks and Private
(H1A):There is a significant
Modeling [SEM] sector banks
difference in Customer
Satisfaction for Public sector
banks and Private sector banks
Null Hypothesis
(H2o):There is no significant rejected.
Kolmogorov
differences in Customers’
Smirnov Test Null hypothesis is rejected
preferences between Public Sector
Banks and Private sector banks Multiple Regression There is a significant difference
Alternative Hypothesis in Customers’ preferences
between Public Sector Banks and
Structural Equation Private sector banks
difference in Customers’
Modeling [SEM]
preferences between Public Sector
Banks and Private sector banks
Null Hypothesis
(H3o):Service Quality is not rejected.
highly influential on Customer
Satisfaction for both Public Sector Chi Square Test Null hypothesis is rejected
Banks and Private Sector Banks Reliability Analysis
Service Quality is highly
Alternative Hypothesis
influential on Customer
Multiple Regression
(H3A):Service Quality is highly Satisfaction for both Public
Structural Equation
influential on Customer Sector Banks and Private Sector
Modeling[SEM]
Satisfaction for both Public Sector Banks
Null Hypothesis
(H4o):There is no significant rejected.
effect of Bank Infrastructure,
Null hypothesis is rejected
Service Quality, Customer
Satisfaction, Grievance handling Multiple Regression There is a significant effect of
and E-Banking Services on Reliability Analysis Bank Infrastructure, Service
Customer Satisfaction for both Structural Equation Quality, Customer Satisfaction,
Public Sector Banks and Private Modeling[SEM] Grievance handling and E-
Sector Banks Banking Services on Customer
Satisfaction for both Public
Alternative Hypothesis Sector Banks and Private Sector
Banks.
(H4A):There is a significant effect
of Bank Infrastructure, Service
Quality, Customer Satisfaction,
Grievance handling and E-
Banking Services on Customer
Satisfaction for both Public Sector

Null Hypothesis
(H5o):There is no significant rejected
difference in the Overall
performance betweenPublic Mann Whitney U Null hypothesis is rejected
sector banks and Private sector test
There is a significant difference
banks Multiple Regression
in the Overall performance
betweenPublic sector banks and
Alternative Hypothesis Factor Analysis
difference in the Overall
Structural Equation
performance betweenPublic
Modeling[SEM]
Sector banks and Private sector
banks
6 – FINDINGS, CONCLUSION AND SUGGESTION
6.1 FINDINGS:
6.1.1 Public Sector Banks:
 The study shows that out of 500 respondents, 273(55%) of the respondents are male
and 227(45%) are female. It shows the majority of the respondents are male than
female.
 The study shows that out of 500 respondents, 131(26%) of the respondents are
Married, 365 (73%) as Unmarried and 4(1%) as Divorced/ Widow. It shows the
majority of the respondents are Unmarried.
 The study shows that out of 500 respondents, 386(77%) of the respondents are in age
group between 18 to 30, 54(11%) as 31 to 40, 32 (6%) as 41 to 50 and 28 (6%) as
More than 50. It shows the majority of the respondents are in the age group between
18 to 30.
 The study reveals that out of 500 respondents, 38(8%) of the respondents are having
Educational Qualification as SSC, 129(26%) as HSC, 220(44%) as UG, 94(19%) as
PG and 19(4%) as Vocational / technical courses. It shows the majority of the
respondents are Graduates.
 The study reveals that out of 500 respondents, 32(6%) of the respondents belonging to
Government Service, 298(60%) as Private Organisation, 70(14%) as Self employed
and 100(20%) as Student. It shows the majority of the respondents are from Private
Organisation.
 The study reveals that out of 500 respondents, 364(73%) of the respondents having
accounts in State Bank of India and 136(27%) as Union Bank of India. It shows that
majority of the respondents are having accounts with State Bank of India
 The study reveals that out of 500 respondents, 458(92%) of the respondents having
type of account as Saving Account, 36(7%) as Current Account and 6(1%) as Any
other. It shows that majority of the respondents are having accounts with State Bank
of India.
 The study reveals that out of 500 respondents, 13(3%) of the respondents Rate Bank’s
ATM as Highly Inconvenient, 27(5%) as Inconvenient, 126(25%) as Neutral,
246(49%) as Convenient and 88(18%) as Highly Convenient.
 The research found that out of 500 respondents, 41(8%) of the respondents are of the
opinion about rating while opening bank account as Very poor, 126(25%) as Poor,
183(37%) as Average, 71(14%) as Good and 79(16%) as Excellent.
 The research found that out of 500 respondents, 11(2%) of the respondents about
usage of banking services as Never, 60(12%) as Rarely, 157(31%) as Sometimes,
123(25%) as Often and 149(30%) as Always.
Transaction Related
 The research found that out of 500 respondents, 212(42%) of the respondents are of
the opinion about the time taken to add a beneficiary for NEFT/ IMPS transfer
payments as Less than half a day, 109(22%) as One day and 179(36%) as More than
one day.
 The research found that out of 500 respondents, 70(14%) of the respondents are of the
opinion about the transaction limit as Rs. 20000, 293(59%) as Rs. 50000 and
137(27%) as More than Rs. 50000.
 The research found that out of 500 respondents, 11(2%) of the respondents opinion
about the level of Satisfaction with the transaction limit as Very Low, 43(9%) as Low,
256(51%) as Neutral, 128(26%) as High and 62(12%) as Very High.
 The research found that out of 500 respondents, 288(58%) of the respondents opinion
about the bank have the option to increase transaction limit as Yes and 212(42%) as
No.
 The research depicted that out of 500 respondents, 49(10%) of the respondents found
the extent of Customer Satisfaction as Very Low, 140(28%) as Low, 197(39%) as
Neutral, 75(15%) as High and 39(8%) as Very High.
 The research depicted that out of 500 respondents, 16(3%) of the respondents Rate
Bank’s ATM as Highly Inconvenient, 33(7%) as Inconvenient, 162(32%) as Neutral,
197(39%) as Convenient and 92(18%) as Highly Convenient.
Grievance Handling:
 The research depicted that out of 500 respondents, 221(44%) of the respondents Made
a Complaint as Yes, 198(40%) as No and 81(16%) as May be.
 The research depicted that out of 500 respondents, 199(40%) of the respondents
opinion about the complaints solved immediately as Yes, 174(35%) as No and
127(25%) as May be.
 The research depicted that out of 500 respondents, 254(51%) of the respondents
opinion about the complaints ever reach till the necessity of the intervention of the
bank’s ombudsman as Yes and 246(49%) as No.
E-Banking:
 The research depicted that out of 500 respondents, 386(77%) of the respondents as
Yes and 114(23%) as No for the usage of the online portal of their bank.
 The research depicted that out of 500 respondents, 118(24%) of the respondents are of
the opinion about the satisfaction level of the online portal of bank as Highly
Dissatisfied
 190(38%) as Dissatisfied, 146(29%) as Neutral, 26(5%) as Satisfied and 20(4%) as
Highly Satisfied.
6.1.2 Private Sector Banks:
 The study revealed that out of 500 respondents, 269(54%) of the respondents are male
and 231(46%) are female. It shows the majority of the respondents are male than
female.
 The study revealed that out of 500 respondents, 129(26%) of the respondents are
Married, 363(73%) as Unmarried and 8(2%) as Divorced/ Widow. It shows the
majority of the respondents are Unmarried.
 The study revealed that out of 500 respondents, 385(77%) of the respondents are in
age group between 18 to 30, 73(15%) as 31 to 40, 28(6%) as 41 to 50 and 14(3%) as
More than 50. It shows the majority of the respondents are in the age group between
18 to 30.
 The study revealed that out of 500 respondents, 21(4%) of the respondents are having
Educational Qualification as SSC, 128(26%) as HSC, 259(52%) as G, 81(16%) as PG
and 11(2%) as Vocational / technical courses. It shows the majority of the respondents
are Graduates.
 The study revealed that out of 500 respondents, 6(1%) of the respondents belonging to
Government Service, 256(51%) as Private Organisation, 58(12%) as Self employed
and 180(36%) as Student. It shows the majority of the respondents are from Private
Organisation.
 The study revealed that out of 500 respondents, 219(44%) of the respondents having
accounts in ICICI Bank and 281(56%) as HDFC Bank. It shows that majority of the
respondents are having accounts with HDFC Bank.
 Out of 500 respondents, 403(81%) of the respondents having type of account as
Saving Account, 79(16%) as Current Account and 18(4%) as Any other. It shows that
majority of the respondents are having Saving Account.
 Out of 500 respondents, 16(3%) of the respondents rate Bank’s ATM as Highly
Inconvenient, 33(7%) as Inconvenient, 162(32%) as Neutral, 197(39%) as Convenient
and 92(18%) as Highly Convenient.
 Out of 500 respondents, 61(12%) of the respondents are of the opinion about rating
while opening bank account as Very poor, 97(19%) as Poor, 123(25%) as Average,
94(19%) as Good and 125(25%) as Excellent.
 It shows that out of 500 respondents, 8(2%) of the respondents responded the usage of
banking services as Never, 39(8%) as Rarely, 124(25%) as Sometimes, 149(30%) as
Often and 18(36%) as Always.
Transaction Related:
 It shows that out of 500 respondents, 135(27%) of the respondents are of the opinion
about the time taken to add a beneficiary for NEFT/ IMPS transfer payments as Less
than One hour, 113(23%) as Less than half a day, 112(22%) as One day and
140(28%) as More than one day.
 It shows that out of 500 respondents, 123(25%) of the respondents opinionated about
the transaction limit as Rs. 20000, 138(28%) as Rs. 50000 and 239(48%) as More
than Rs. 50000.
 The study found that out of 500 respondents, 5(1%) of the respondents opinion about
the level of Satisfaction with the transaction limit as Very Low, 22(4%) as Low,
222(44%) as Neutral, 133(27%) as High and 118(24%) as Very High.
 The study found that out of 500 respondents, 274(55%) of the respondents opinion
about the bank have the option to increase transaction limit as Yes and 226(45%) as
No.
 The study found that out of 500 respondents, 65(13%) of the respondents about the
extent of Customer Satisfaction as Very Low, 113(23%) as Low, 137(27%) as
Neutral, 121(24%) as High and 64(13%) as Very High.
 The study found that out of 500 respondents, 16(3%) of the respondents pinioned
about the Bank’s ATM as Highly Inconvenient, 33(7%) as Inconvenient, 162(32%) as
Neutral, 197(39%) as Convenient and 92(18%) as Highly Convenient.
Grievance Handling:
 The study found that out of 500 respondents, 183(37%) of the respondents Made a
Complaint as Yes, 210(42%) as No and 107(21%) as May be.
about the complaints solved immediately as Yes, 181(36%) as No and 99(20%) as
May be.
about the complaints ever reach till the necessity of the intervention of the bank’s
ombudsman as Yes and 232(46%) as No.
E-Banking
 The study found that out of 500 respondents, 348(70%) of the respondents as Yes and
152(30%) as No for the usage of the online portal of their bank.
 The study found that out of 500 respondents, 147(29%) of the respondents are of the
opinion about the satisfaction level of the online portal of bank as Highly Dissatisfied,
162(32%) as Dissatisfied, 110(22%) as Neutral, 45(9%) as Satisfied and 36(7%) as
Highly Satisfied.
6.1.3 Summary of Weighted Average Means of Banks:
(a) Public Sector Banks
 Weighted Average Mean for Bank Infrastructure:

The highest Weighted Average Mean have been observed for Cleanliness of the bank
as 3.89, Seating arrangement for customers as 3.76 and Bank infrastructure as 3.71. From the
Weighted Average Mean, bank infrastructure can be summarized as Cleanliness of the bank,
Seating arrangement for customers and infrastructure.
 Weighted Average Mean for Service Quality:

The highest Weighted Average Mean have been observed for Home Loan as 3.90, Car
loan as 3.66 and financial products (shares etc) as 3.59. From the Weighted Average Mean,
Service Quality can be summarized as Home Loan, Car loan and financial products (shares
etc).
 Weighted Average Mean for level of customer satisfaction related to Service

Quality:
The highest Weighted Average Mean have been observed for Promptness of
transaction as 3.80, Security of transactions as 3.76 and Safe Custody as 3.71. From the
Weighted Average Mean, level of customer satisfaction related to Service Quality can be
depicted as Promptness of transaction, Security of transactions and Safe Custody.
 Weighted Average Mean for Customer Satisfaction:

The highest Weighted Average Mean have been observed for Internet banking
services as 3.87, ATM services as 3.84 and Home banking services as 3.82. From the
Weighted Average Mean, Customer Satisfaction can be summarized as Internet banking
services, ATM services and Home banking services.
 Weighted Average Mean for Grievance Handling:

The highest Weighted Average Mean have been observed Long queues as 2.73,
Document related issues as 2.64 and Unwell treatment of employees as 2.61. From the
Weighted Average Mean, Grievance Handling can be summarized as Long queues ,
Document related issues and Unwell treatment of employees.
 Weighted Average Mean for services availed through E-Banking:

The highest Weighted Average Mean have been observed for Forex as 2.41, Pay My
Dues & bills as 2.21 and RTGS as 2.17. From the Weighted Average Mean, services availed
through E-Banking can be summarized as Forex, Pay My Dues & bills and RTGS.
 Weighted Average Mean for kind of E-banking services:

The highest Weighted Average Mean have been observed for Saving Account as 4.05,
Debit Card as 3.86 and Self-Transfer as 3.77. From the Weighted Average Mean, kind of E-
banking services can be summarized as Saving Account, Debit Card and Self-Transfer.
 Weighted Average Mean for Value Added Services of E-Banking:

The highest Weighted Average Mean has been observed for Mobile passbook as 4.03,
Change pin as 4.03 and Active SMS as 3.99. From the above Weighted Average Mean, Value
Active SMS.
 Weighted Average Mean for Services used in App:

The highest Weighted Average Mean has been observed for Statement of account as
3.85, Transaction search as 3.84 and Cheque book request as 3.62. From the Weighted
Average Mean, Services used in App can be summarized as Statement of account,
Transaction search and Cheque book request.
 Weighted Average Mean for Problems in E- Banking:

The highest Weighted Average Mean has been observed for Scare of scam as 3.63,
Fear of cut off transaction in between (Network issues) as 3.52 and Doubt of transaction
security as 3.50. From the Weighted Average Mean, Problems in E- Banking can be
summarized as Scare of scam, Fear of cut off transaction in between (Network issues) and
Doubt of transaction security.
 Weighted Average Mean for Overall Performance of Banking Services:

The highest Weighted Average Mean has been observed for Overall Bank
Management as 3.97, Overall Quality of Online transaction as 3.91 and Assurance of safety
and security as 3.85. From the Weighted Average Mean, Overall Performance of Banking
Services can be summarized as Overall Bank Management, Overall Quality of Online
transaction and Assurance of safety and security.
(b) Private Sector Banks:
 Weighted Average Mean for Bank Infrastructure:

The highest Weighted Average Mean have been observed for Seating arrangement for
customers as 4.06, Cleanliness of the bank as 4.06, Bank infrastructure as 3.95 and
Technological advancement as 3.95. From the Weighted Average Mean, Seating arrangement
for customers, Cleanliness of the bank, Bank infrastructure and Technological advancement.
 Weighted Average Mean for Service Quality:

The highest Weighted Average Mean has been observed for Home Loan as 3.85, Car
loan as 3.66 and financial products (shares etc) as 3.57. From the Weighted Average Mean,
Service Quality can be summarized as Home Loan, Car loan and financial products (shares
etc).
 Weighted Average Mean for level of customer satisfaction related to Service

Quality:
The highest Weighted Average Mean has been observed for Promptness of
transaction as 4.15, Security of transactions as 3.95 and Safe Custody as 3.91. From the
Weighted Average Mean, level of customer satisfaction related to Service Quality can be
depicted as Promptness of transaction, Security of transactions and Safe Custody.
 Weighted Average Mean for Customer Satisfaction:

The highest Weighted Average Mean have been observed for Internet banking
services as 4.19, Home banking services as 4.12and ATM services as 4.06. From the
Weighted Average Mean, Customer Satisfaction can be summarized as Internet banking
services, Home banking services and ATM services.
 Weighted Average Mean for Grievance Handling:

The highest Weighted Average Mean has been observed Long queues as 2.77,
Transaction related problems as 2.76 and Document related issues as 2.71. From the above
Weighted Average Mean, Grievance Handling can be summarized as Long queues,
Transaction related problems and Document related issues.
 Weighted Average Mean for services availed through E-Banking
The highest Weighted Average Mean has been observed for Forex as 2.57, RTGS as
2.34 and Pay My Dues & bills as 2.32. From the Weighted Average Mean, services availed
through E-Banking can be summarized as Forex, RTGS and Pay My Dues & bills.
 Weighted Average Mean for kind of E-banking services:

The highest Weighted Average Mean have been observed for Saving Account as 4.19,
Debit Card as 4.05 and IMPS as 3.91. From the Weighted Average Mean, kind of E-banking
services can be summarized as Saving Account, Debit Card and IMPS.
 Weighted Average Mean for Value Added Services of E-Banking:

The highest Weighted Average Mean has been observed for Mobile passbook as 4.32,
Change pin as 4.18 and Active SMS as 4.15. From the above Weighted Average Mean, Value
Active SMS.
 Weighted Average Mean for Services used in App:

The highest Weighted Average Mean has been observed for Transaction search as
4.19, Statement of account as 3.99 and Cheque book request as 3.71. From the Weighted
Average Mean, Services used in App can be summarized as Transaction search, Statement of
account and Cheque book request.
 Weighted Average Mean for Problems in E- Banking:

The highest Weighted Average Mean has been observed for Scare of scam as 3.66,
Fear of cut off transaction in between (Network issues) as 3.47 and Doubt of transaction
security as 3.42. From the Weighted Average Mean, Problems in E- Banking can be
summarized as Scare of scam, Fear of cut off transaction in between (Network issues) and
Doubt of transaction security.
 Weighted Average Mean for Overall Performance of Banking Services:

The highest Weighted Average Mean has been observed for Overall Bank
Management as 4.29, Assurance of safety and security as 4.16 and Overall Quality of Online
transaction as 4.13. From the above Weighted Average Mean, Overall Performance of
Banking Services can be summarized as Overall Bank Management, Assurance of safety and
security and Overall Quality of Online transaction.
6.1.4 Summary of Grand Mean:
Table 6.1:
Grand Mean of Public Sector Banks
Variables Grand Rank
Mean
Customer Satisfaction for branch facility[Infrastructure] 3.61 4
Customer Satisfaction for Banking services[Customer Satisfaction] 2.96 5
E-Banking 3.73 2
Based on the summary of Grand Mean for Public Sector Banks, it can be inferred that
the highest Grand Mean has been observed for the Customer Satisfaction in the Performance
with the Grand Mean of 3.82, for E-Banking the Grand Mean is 3.73 and Customer
Satisfaction for Service Quality ranked third with the Grand Mean of 3.73. Hence, we can
conclude that the Customer Satisfaction for Public Sector Banks depends more on the
Overall Performance, E-Banking and Service Quality.
Table 6.2:
Grand Mean of Private Sector Banks
Variables Grand Rank
Mean
Customer Satisfaction for branch facility[Infrastructure] 3.90 2
Customer Satisfaction for Banking services[Customer Satisfaction] 3.05 5
E-Banking 3.82 4
Based on the summary of Grand Mean for Private Sector Banks, it can be inferred that
the highest Grand Mean has been observed for the Customer Satisfaction in the Performance
with the Grand Mean of 4.11, for branch facility [Infrastructure] the Grand Mean is 3.90 and
Customer Satisfaction for Service Quality ranked third with the Grand Mean of 3.85. Hence,
we can conclude that the Customer Satisfaction for Private Sector Banks depends more on
the Overall Performance, branch facility and Service Quality.
Table 6.3:
Consolidated table for Grand Mean of both Public Sector Banks &Private Sector Banks
Public Sector Private Sector
Attributes for measuring Customer Banks Banks
Satisfaction Grand Grand
Rank Rank
Mean Mean
Customer Satisfaction for branch
3.61 4 3.90 2
facility[Infrastructure]
Customer Satisfaction for Service Quality 3.65 3 3.85 3
Customer Satisfaction for Banking
2.96 5 3.05 5
services[Customer Satisfaction]
E-Banking 3.73 2 3.82 4
Grievance Handling 2.60 6 2.69 6
Customer Satisfaction in the Performance 3.82 1 4.11 1
Based on the ranks of Grand Mean for both Public Sector Banks & Private Sector
Banks, it can be inferred that there is a significant difference in the level of Customer
Satisfaction with reference Infrastructure, Service Quality, Customer Satisfaction, E-Banking,
Grievance Handling and Overall Performance. The Grand Mean of Private Sector Banks is
4.11 whereas for Public Sector Banks it is 3.82. The Grand Mean for Customer Satisfaction
for branch facility [Infrastructure] for Private Sector Banks is 3.90 whereas for Public Sector
Banks it is 3.61. The Grand Mean for Private Sector Banks is higher in all the aspects as
compared to the Public Sector Banks. Hence, we can conclude that the satisfaction level for
Private Sector Banks is higher than Public Sector Banks.
6.1.5 Reliability Analysis for both Public Sector Banks and Private Sector
Banks:
Table 6.4:
Summary of Reliability Statistics for Customer Satisfaction for both Public Sector
Variables Cronbach’s Alpha
(α)
Customer Satisfaction for branch facility[Infrastructure] 0.838
Customer Satisfaction for Service Quality 0.827
Customer Satisfaction for Banking services[Customer 0.840
Satisfaction]
E-Banking 0.825
Grievance Handling 0.875
Customer Satisfaction in the Performance 0.844
Based on the summary of reliability, it can be inferred that the value of Cronbach’s
Alpha (α) found to be more than 0.8 which shows the internal consistency for all the variables
included in the research consisting of Customer Satisfaction for branch facility
Satisfaction in the Performance.
6.1.6 Test of Validity for both Public Sector Banks and Private Sector
Banks:
In the present study, Multiple Regression Analysis of Bank Infrastructure, Service

Quality, Customer Satisfaction, E Banking, and Grievance Handling on Overall Satisfaction
have been tested as a tool of validity. Collinearity has been used a inbuilt measure to
determine the effect of independent variables called as predictors on dependent variable
called as criterion. The significance levels less than 5% indicate that null hypothesis can be
rejected. It can be inferred that independent variables [Bank Infrastructure, Service Quality,
Customer Satisfaction, E Banking, and Grievance Handling] are influential on Overall
Satisfaction.
The tolerance more than 5% and Variance Inflation Factor (VIF) less than 10
indicates that the effect of independent variables on dependent variable can be determined
effectively. VIF is a measure of multicollinearity in the set of multiple regression variables.
When VIF less than 10, it can be further revealed as there is no multicollinearity.
Multicollinearity is the occurrence of high intercorrelations among two or more independent
variables in a multiple regression model. The high intercorrelations among the independent
variables fail to assess the effect on dependent variable accurately.
When there is no multicollinearity among the independent variables, the predictor

validity is also high. The predictor validity is an indication for establishing the causal
relationship among the variables included in the research
6.1.7 Hypothesis Testing:

The Hypothesis Testing using Chi Square Test depicted that Null Hypothesis can be
rejected as the significance level found to be less than 5%. This means that the there is a
significant difference in Customer Satisfaction for Public sector banks and Private sector
banks. The Hypothesis Testing using Kolmogorov Smirnov Test revealed that null hypothesis
can be rejected as the significance level found to be less than 5%. There is a significant
difference in Customers’ preferences between Public Sector Banks and Private sector banks.
The highest value of Kolmogorov Smirnov Value has been observed for Home Loan as 5.91.
The second highest value has been observed for Overdraft as 5.538. The third highest value
has been observed for Gold loan as 5.441. It can be inferred that Customers’ preferences for
Public Sector Banks can be summarized as Home Loan, Overdraft and Gold loan.
For Private Sector Banks, the highest value of Kolmogorov Smirnov Value has been
observed for Home Loan as 5.644. The second highest value has been observed for Financial
products (shares etc) as 5.548. The third highest value has been observed for Personal loan as
5.441. It can be inferred that Customers’ preferences for Private Sector Banks can be
summarized as Home Loan, Overdraft and Gold loan.
The hypothesis testing using Chi Square Test highlighted that Null Hypothesis can be
rejected as the significance level found to be less than 5%. It can be inferred that Service
Quality is highly influential on Customer Satisfaction for both Public Sector Banks and
The highest value of Chi-Square value has been observed for the Service Quality of
the banker as 382.88. The second highest value has been observed for Security of transactions
as 346.66. The third highest value of Chi Square has been observed for Promptness of
transaction as 340.92. It can be inferred that Service Quality for Public Sector banks can be
summarized as the Service Quality of the banks, Security of Transactions and Promptness
of Transaction.
The highest value of Chi-Square value has been observed for Promptness of
transaction as 416.02. The second highest value has been observed for Security of
transactions as 401.38. The third highest value of Chi Square has been observed for Safe
Custody as 373.02. It can be inferred that Service Quality for Private Sector banks can be
summarized as Promptness of Transaction, Security of Transactions and Safe Custody.
An effect of Bank Infrastructure, Service Quality, Customer Satisfaction, E Banking,

and Grievance Handling on Overall Satisfaction has been tested using Multiple Regression
Analysis for both Public Sector Banks and Private Sector Banks. Multiple Regression
Analysis been used an inbuilt measure to determine the effect of independent variables called
as predictors on dependent variable called as criterion.
highest value of standardized coefficient (beta) has been observed for E Banking, Service
Quality and Bank Infrastructure. It can be further inferred that E Banking, Service Quality
and Bank Infrastructure are highly significant for Overall Satisfaction. The negative value
of Customer Satisfaction indicates that Public Sector Banks should improve the customer
Satisfaction through providing value added services.
highest value of standardized coefficient (beta) has been observed for E Banking, Bank
Infrastructure and Service Quality. It can be further inferred that E Banking, Bank
Infrastructure and Service Quality are highly significant for Overall Satisfaction for
The following hypothesis has been tested by using Mann Whitney U test:
The hypothesis testing using Mann Whitney U test indicated that significance level
found to be less than 5% to reject Null Hypothesis. It can be further found that t here is a
significant difference in the Overall performance between Public sector banks and Private
sector banks. The mean ranks are higher for Private Sector Banks as compare to Public Sector
Banks. It reveals that overall performance for Private Sector Banks is higher than Public
Sector Banks.
(a) Factor Analysis for Service Quality for Public Sector Banks:
Factor Analysis has been used to classify the Service Quality for Public Sector Banks.
By using Factor Analysis, we can summarise the components for Service Quality for Public
Sector Banks.
Factor Analysis for Service Quality for Public Sector Banks highlighted two factors as
follows:
Factor 1:
 Consultancy
Factor 2:
 Bank Guarantee
 Home Banking
 Mobile banking
 Safe Custody
The factors are renamed for Service Quality for Public Sector Banks as follows:
Factor 1 – Promptness Factors
Factor 2 – Security Factors
From the Factor analysis it states that Promptness Factors and Security Factors are
highly significant in contributing to the Service Quality for Public Sector Banks.
Factor Analysis for Service Quality for Private Sector Banks

Factor Analysis has been used to classify the Service Quality for Private Sector Banks. By
using Factor Analysis, we can summarise the components for Service Quality for Private
Sector Banks.
(b) Factor Analysis for Service Quality for Private Sector Banks highlighted two
factors as follows:
Factor 1:
 Consultancy
Factor 2:
 Home Banking
 Bank Guarantee
 Safe Custody
 Mobile banking
The factors are renamed for Service Quality for Private Sector Banks as follows:
Factor 1 – Service Factors
Factor 2 – Safety Factors
From the Factor analysis it states that Service Factors and Safety Factors are highly
significant in contributing to the Service Quality for Private Sector Banks.
6.2 CONCLUSION AND SUGGESTIONS:
The study shows that Private Sector Banks are doing better as compare to the Public
Sector Banks. Improving the performance of Public Sector Banks in India involves
addressing various aspects, including governance, operational efficiency, customer service,
and technology adoption. Here are some suggestions which can bring the improvement in
Public Sector Banks:
Public Sector Banks should enhance governance structures to ensure transparency,
accountability, and effective decision-making. They need to prioritize customer satisfaction
and experience by offering personalized services. There is a need to leverage customer
feedback to identify areas for improvement and promptly address issues. They should appoint
skilled and experienced professionals as leaders to guide the banks in a strategic direction.
Streamlining and modernizing the internal processes can also lead to improve efficiency and
reduce operational costs. Implementation of advanced technologies such as robotic process
automation (RPA) and artificial intelligence are required to automate routine tasks. They
should focus to Strengthen risk management practices to identify, assess, and mitigate various
risks effectively. Regularise updated risk management policies to align with the evolving
financial landscape. They need to ensure that banks maintain adequate capital levels to
withstand economic downturns and unexpected shocks. There is a need to monitor and assess
capital adequacy ratios regularly to comply with regulatory requirements. The focus should
be on customer-centric services to improve the overall customer experience. Implementing
digital solutions for smoother transactions and quicker issue resolution will eliminate the long
queues in banks. Public Sector Banks should invest in and adopt advanced technologies like
blockchain, machine learning, and data analytics to enhance operational capabilities and
provide innovative services. There is a need to develop a robust cyber security framework to
protect customer data and ensure the integrity of financial transactions. Invest in continuous
training and skill development programs for employees to keep them updated on industry
trends and best practices. Also, foster a culture of innovation and adaptability within the
organization. They should actively participate in government initiatives for financial
inclusion to reach underserved and remote areas. They can introduce products and services
that cater to the needs of diverse customer segments, collaborate with fintech companies to
leverage their expertise and adopt innovative solutions, explore partnerships to enhance the
delivery of financial services and improve operational efficiency, accelerate digital
transformation initiatives to provide online and mobile banking services, develop user-
friendly interfaces and apps to attract tech-savvy customers, implement key performance
indicators (KPIs) to measure and evaluate the performance of different departments within
the organization. And regularly review and adjust strategies based on performance metrics.
They can Stay updated on regulatory changes and ensure compliance with all banking
regulations and establish a robust compliance framework to minimize regulatory risks.
Implementing these suggestions requires a concerted effort from both the leadership
and employees of public sector banks. Continuous monitoring and adaptation to changing
market dynamics will be essential for sustained improvement.
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 www.sbi.co.in
 www.unionbankofindia.co.in
 www.icicicareers.com
 www.hdfc.com
QUESTIONNAIRE
PART A - PERSONAL INFORMATION

Dear customers / respondents, you are requested to fill the questionnaire as a part of my
Ph.D. research. It will only be used for research purpose. Please tick (√) the options wherever
required.
Full Name: _______________________
Location in Mumbai:____________________
Gender:
Male
Female
Marital Status:
Married
Unmarried
Divorced/ Widow
Age:
18 to 30
31 to 40
41 to 50
More than 50
Qualification:
Lower than HSC
Higher than HSC
Graduate
Post graduate
Vocational / technical courses (plumber, electricians, tailors etc)
Occupation:
Government Service
Working in Private Organisation
Self employed
Student
SUBJECT RELATED QUESTIONS:

1. Your bank is:
Public Sector Bank
Private Sector Bank
2. Name of your bank is:
State Bank of India
Union Bank of India
ICICI Bank
HDFC Bank
3. Which type of account you have?
Saving Account
Current Account
Any other
4. How do you rate this bank while opening bank account? Please tick (√) wherever
applicable.
Excellent Good Average Poor Very poor

5. How often do you use banking services in a month?
Always
Often
Sometimes
Rarely
Never
BANK INFRASTRUCTURE:
6. Level of customer satisfaction related to branch facility. Please tick (√) wherever
applicable.
Particulars Stronglysatisfie Satisfied Neutra Dissatisfie Stronglydissatisfied

d l d
Seating
arrangement
for
customers.
Cleanliness of
the bank
Working
hours of bank
Handling
enquiries and
grievances
Attitude of
bank staff
Quality of
interaction of
staff
Response to
call
Bank
infrastructure
Attractive
layout
Satisfaction
with customer
care
Time taken to
sort out
complain
Technologica
l
advancement
Updated
systems
Parking Area
Lunch
Timing
7. How do you rate Bank’s ATM facility location wise?
Very Convenient
Convenient
Satisfactory
Inconvenient
Very Inconvenient
SERVICE QUALITY:
8. Which kind of services do you get from bank (also the products)? Please tick (√)
wherever applicable.
Particulars Strongly Satisfied Neutral Dissatisfied Stronglydissatisfied

satisfied
Home Loan
Personal loan
Car loan
Gold loan
Overdraft
Mutual funds
RD and fixed
deposits
Insurance products
Financial products
(shares etc)
Credit card
Extended Credit
limit
9. Level of customer satisfaction related to Service Quality. Please tick (√) wherever
applicable:
Particulars Stronglysatisfied Satisfied Neutral Dissatisfied Stronglydissatisfied

Promptness
of transaction
The service
quality of the
banker
Cooperation
by the banker
Availability
of power
back-up
generator/
Inverter
Consultancy
Bank
Guarantee
Home
Banking
Mobile
banking
Safe Custody
Security of
transactions
TRANSACTION RELATED QUESTIONS:

10. How much time does it taken to add a beneficiary for NEFT/ IMPS transfer
payments?
Less than One hour
Less than half a day
One day
More than one day
11. How much transaction limit does your bank allow you per day?
10000
20000
50000
More than 50000
12. Rate the level of satisfaction with the transaction limit.
Very High
High
Satisfactory
Low
Very Low
13. Does your bank have the option to increase transaction limit?
Yes
No
14. If yes, have you ever used the option to increase the transaction limit?
Yes
No
CUSTOMER SATISFACTION:
15. To what extent are you satisfied by the services of your bank?
Stronglysatisfied 1 2 3 4 5 Strongly dissatisfied
16. Please tick (√)Banking services relating to your satisfaction: (hypothesis no.2)
Particulars Excellent Good Average Poor Very

poor
Home banking services
Internet banking services
Phone banking services
ATM services
Credit care facility services
Customer Relationship
Staff behaviour towards customer
Electronic transfer (RTGS/NEFT)
Mobile app facility services
Timely transaction
Prompt services
Queue management
GRIEVANCE HANDLING:
17. Have you ever made a complaint to your bank about their services?
Yes
No
May be
18. Were your complaints solved immediately?
Yes
No
May be
19. Did your complaints ever reach till the necessity of the intervention of the bank’s
ombudsman?
Yes
No
20. How do the following factors affect you while using your bank’s services?
Particulars Don’t Affect Indifferen affect Highly

affect little t affect
Delay in services
Frequent printer issue
Unwell treatment of employees
Transaction related problems
Long queues
Document related issues
E- BANKING:
21. Do you use bank mobile application services?
Yes
No
22. If Yes, Are you satisfied with the online portal of your bank?
Strongly dissatisfied
Dissatisfied
Neutral
Satisfied
Stronglysatisfied
23. Rank the importance of the following services which you avail through E-
Banking. Please tick (√) wherever applicable.
Particulars Extremely Important Neutral Unimportan Extremely

important t unimportant
NEFT / IMPS
RTGS
Pay My Dues &
bills
Recharge
UPI
E- statements
Card Services
Forex
24. While using E-banking which kind of bank services you often use? Rank its
importance. Please tick (√) wherever applicable:

Saving Account
Recurring Deposit
Fixed Deposit
Loan
Inter-bank transfer
Intra-bank transfer
IMPS
Self-Transfer
Debit Card
Credit Card
25. Rank other Value Added Services used while E-banking? Please tick (√)
wherever applicable:

Mobile passbook
Change pin
Active SMS
Tax credit statement
National pension
scheme
Digi- locker
Refer a friend
Request tracker
re-issue of card
26. Specify services used in App by you. Please tick (√) wherever applicable:
Particulars Very Frequently Occasionally Rarely Never

frequently
Transaction search
Statement of account
Cheque book request
Doorstep banking
Cheque status enquiry
TDS enquiry
Upgrading account
Update nominee
Change in address
Transfer account to nearest
branch
27. To what extent you are facing problem in E-Banking? Please tick (√) wherever
applicable:
Particulars Very High High Neutral Low Very Low
Scare of scam
Unwillingness to use
Lack of technological knowledge
Scared of using devices
Fear of cut off transaction in between
( Network issues)
Doubt of transaction security
OVERALL PERFORMANCE DETERMINING CUSTOMER

SATISFACTION:
28. How much do you think the following are significant in improving the customer
satisfaction in the performance of public & private sector banks? Please tick (√)
wherever applicable.
Particulars Highly Significant Neutral Not significant Extremely not

significan significant
t
Overall Bank
Management
Overall Quality of
Online transaction
Overall Customer
Satisfaction
Overall Grievance
Handling
Overall Bank Image
Overall Service
Quality
Overall Bank
Infrastructure
Overall attitude of
staff
User-friendly
transactions
Assurance of safety
and security
************THANK YOU***********
2.4 CHRONOLOGY OF EVENTS:
Date Event
Royal Commission on Indian Currency (Hilton Young Commission)
1926 recommends the establishment of a central bank to be called the 'Reserve Bank
of India'.
Indian Central Banking Enquiry Committee revives the issue of the

1931
establishment of the Reserve Bank of India as the Central Bank for India.
Reserve Bank of India Act, 1934, (II of 1934) constitutes the statutory basis on
1934
which the Bank is established.
Reserve Bank of India commences operations. Sir Osborne Smith the first
April 1935
Governor of the Bank. The Bank was constituted as a shareholders' bank.
Scheduled banks required to maintain the Cash Reserve Ratio, i.e., hold cash
July 1935 balances with the RBI equivalent to 5% of their Demand Liabilities and 2% of
their Time Liabilities.
Oct 1935 London Office of the Reserve Bank set up. This was closed on September 30,
1963.
Nov 1936 Resignation of the first Governor, Sir Osborne Smith, wef July 1, 1937.
Indian Companies (Amendment) Act, 1936 devotes a separate chapter

Jan 1937
exclusively to Banks.
July 1937 Sir James Braid Taylor assumes office as Governor.
RBI acts as banker to the Government of Burma and also responsible for note
1937
issue in Burma.
Jan 1938 First Reserve Bank notes issued.
The Failure of the Travancore National and Quilon Bank, the largest bank in
June 1938 the Travancore region, underlined the need for comprehensive banking reform
and legislation.
Sept 1939 Introduction of Exchange Controls in India under Defence of India Rules.
March
RBI Accounting Year changed from Jan-Dec to July-June.
1940
The silver rupee replaced by the quaternary alloy rupee. One Rupee note
1940 reintroduced. This note had the status of a rupee coin and represented the
introduction of official fiat money in India.
August
Sir C. D. Deshmukh assumes office of Governor.
1943
The security thread on notes introduced for the first time in India as a security
1944
feature.
1944 Laws relating to Government securities and to the management of Public Debt
by the Reserve Bank of India consolidated on the basis of the Public Debt Act,
1944.
Speculative activity in the financial and bullion markets. Defence of India
Rules invoked to authorise the Reserve Bank to collect information from banks
May 1945
in respect of advances. This was to check advances against bullion for
speculation.
Reserve Bank of India entrusted with the Currency & Coinage of the British
June 1945
Military Administration of Burma as well as Banker to BMA.
High Denomination Bank Notes of Rs 500, Rs 1000 and Rs 10,000

Jan 1946
Demonetised to curb unaccounted money.
Interim arrangements for Bank Supervision were put in place by ordinances
which were later replaced by the Banking Companies Act, 1949. These
1946
Ordinances empowered the Reserve Bank to inspect banks, as well as authorise
the licensing of bank branches.
June 1948 RBI ceased to function as the Central Bank of Pakistan. State Bank of Pakistan
commenced operations wef July 1, 1949.
Jan 1949 Reserve Bank of India nationalised.
Coming into force of the Banking Companies Act, 1949. This formed the
statutory basis of bank supervision and regulation in India. The Statutory

March
Liquidity Ratio (SLR) requiring banks to maintain liquid assets was introduced
1949
for the first time. The Banking Companies Act was later renamed the Banking
Regulation Act.
July 1949 Sir Benegal Rama Rau assumes office as Governor

Rupee devalued by 30.5 % as a defensive measure consequent to the
Sept. 1949
devaluation by other 'sterling area' countries.
Department of Banking Development created together with the new post of

Oct 1950
Executive Director.
Reserve Bank of India (Amendment) Act, 1951 enabled the Bank to become
1951
Banker to Part B states after executing agreements with them.
First Five Year Plan launched.
Bill Market Scheme introduced to enable banks to obtain advances from the
Jan 1952 Reserve Bank against self liquidating bills. It was aimed at allowing currency
to expand to meet seasonal requirements.
State Financial Corporations Act, 1951 came into effect. It Enabled state
governments to establish Financial corporations for meeting the credit needs of

Aug 1952
medium and small scale industries. Bank's Holdings of the capital of SFCs
taken over by the IDBI in 1976.
All-India Rural Credit Survey Committee Report submitted. Its
Aug 1954 recommendations led to bringing rural credit onto the centre stage of central
bank activism. Led to the formation of the State Bank of India.
Bankers' Training College to provide training to banking personnel established

Sep 1954
at Bombay (Mumbai) inaugurated.
Apr 1955 Hali Sicca Rupees which had a circulation of about OS 48 crores ceased to be
legal tender in the erstwhile Hyderabad State. These were replaced by Indian
Rupees.
Imperial Bank of India converted to a state owned institution, State Bank of
India on July 1, 1955. One of the immediate objectives was to establish
July 1955 additional branches particularly at district headquarters. It was also expected to
provide remittance and other facilities to co-operative and other banks and
attempt to mobilise rural savings.
Second Five Year Plan commences
May 1956 Selective Credit Controls were deployed for first time.
System of Note Issue changed from Proportional Reserve System requiring the
Reserve Bank to maintain 40% gold and forex reserves against note issue to a
Oct 1956
minimum reserve system. This was to enable the expanding currency
requirements of the economy to be met.
Jan 1957 Resignation of Governor, Sir Benegal Rama Rau.
Jan 1957 K.G. Ambegaonkar appointed governor till February 28th.
March
HVR Iengar appointed governor
1957
Oct 1957 Minimum reserves against note issue relaxed further.
1959 State Bank of India (Subsidiary Banks) Act, 1959 made the banks of the
erstwhile Princely Sates of India the subsidiaries of the State Bank of India.
These were The Bank of Bikaner, The Bank of Jaipur, The Bank of Indore. The
Bank of Mysore, The Bank of Patiala, The Bank of Hyderabad, The Bank of
Saurashtra and The Bank of Travancore were made subsidiaries of The State
Bank of India. The Bank of Bikaner and The Bank of Jaipur were amalgamated
in 1963 to form the State Bank of Bikaner and Jaipur.
The failure of Laxmi Bank and the subsequent failure of the Palai Central Bank
May 1960
catalyzed the introduction of deposit insurance in India.
Policy of reconstruction / compulsory amalgamation of banks introduced to
consolidate the Banking sector. Powers to do so acquired by RBI Act

1960
amendment.
Between 1960 to 1982 over 200 banks were merged or liquidated.
1961 Third Five Year Plan commences.
Deposit Insurance introduced in India as a depositor protection measure. It was
intended to increase the confidence of the depositors in the banking system, to

Dec 1961
facilitate the mobilisiation of deposits and promote greater stability and growth
of the banking system.
The Reserve Bank of India Act, 1934, the Indian Coinage Act, 1906 and the
May 1962 Currency Ordinance, 1940 extended to Goa, Daman and Diu consequent to
their liberation.
March
P.C. Bhattacharyya appointed Governor.
1962
New Bank Branch Licensing policy laid stress on opening of offices in

May 1962
'unbanked' and 'underdeveloped' areas.
Cash Reserve Ratio of banks was fixed uniformly at 3 % of their Demand and
Sept. 1962
Time Liabilities with the flexibility to vary it between 3 and 15%.
1962 Chapter IIIA incorporated in RBI Act empowered the Bank to collect
information in regard to credit facilities granted by individual banks and

notified financial institutions to their constituents. 1974 the scope of the term
credit information was enlarged to cover the means antecedents, history of
financial transactions and the creditworthiness of any borrower or class of
borrowers.
The Banking Regulation Act amended. Scheduled Banks to maintain minimum

1962
liquid assets (SLR) of not less than 25% of the Demand and Time Liabilities.
Agricultural Refinance Corporation (ARC) set up to provide Refinance to
July 1962 central land mortgage banks, state coop banks, scheduled commercial banks
who were shareholders.
Staff Training College established at Madras started a pilot course representing

Aug 1963
one of the early HRD endeavours in the services sector.
RBI empowered to regulate the deposit acceptance activities of non banking

Feb 1964
institutions. New chapter IIIB inserted in RBI Act.
Unit Trust of India established to extend facilities for an equity type investment
to small investors and also mobilize resources and channel them into
Feb 1964
investments so as to facilitate the growth of the economy.
Commenced operations in July 1964.
IDBI established as a subsidiary of the Reserve Bank of India with the purpose
July 1964 of providing long term industrial finance. Took over business of Refinance
Corporation for Industry in September, 1964.
Credit Regulation introduced to align the growth of bank credit with Plan
Nov. 1965
requirements. Later evolved into the Credit Authorisation Scheme (CAS).
March Operations of co-operative banking system brought under the regulatory ambit
1966 of the RBI. Banking Laws.
March
A new Department of Non Banking Companies established at RBI Calcutta.
1966
Rupee devalued by 36.5 %

June 1966
The US Dollar which earlier was equivalent to Rs 4.75 now rose to Rs 7.50.
July 1966 12 State Cooperative Banks included in Second Schedule of RBI Act.
April 1967 Size of Bank notes reduced.
Introduction of Social Controls over banks with a view to securing a better

Dec 1967
alignment of the banking system to the needs of economic policy.
National Credit Council set up to provide a forum to discuss and assess credit
Dec 1967 priorities on an all India basis. Council was to assist RBI and government to
allocate credit.
April 1968 Quarternary Alloy Rupee Coins demonetised.
Gold (Control) Act passed to bring the administration of the control on a
Sept. 1968 permanent statutory footing.
(see: 1966 Gold Control Rules)
Export Credit (Interest Subsidy) Scheme, 1968 introduced to promote exports.
1968 Pre-shipment Credit Scheme introduced wef Jan 1969 as an export promotion
measure. This allowed banks to get refinance from the Reserve Bank.
Setting up of the Banking Commission by GOI to report on (i) Banking costs; (
Jan 1969 ii) legislations affecting banking; (iii) indigenous banking; (iv) bank
procedures; (v) non banking financial intermediaries.

Gold Holdings of RBI revalued at the current official IMF rate of 0.118489
grammes of fine gold per rupee (to take into account the devaluation of the
Feb 1969
Rupee by 36.5 % in June 1966) The profit on revaluation transferred to the
reserve fund.
14 major Indian Scheduled Commercial Banks with deposits of over Rs 50
crores nationalised ' to serve better the needs of development of the economy in
conformity with national policy objectives'.
On February 10, 1970 the Supreme Court held the Act void mainly on the
July 1969 grounds that it was discriminatory against the 14 banks and that the
compensation proposed to be paid by Govt was not fair compensation.
A fresh Ordinance was issued on February 14 which was later replaced by the
Banking Companies (Acquisition and Transfer of Undertakings ) Act, 1970.
(5 of 1970).
Lead Bank Scheme introduced which envisaged an area approach to banking to

Dec 1969
meet the credit gaps in the economy.
Special Drawing Rights (SDR) created by the IMF to enhance international

Jan 1970
liquidity.
RBI prescribed for the first time the minimum interest rate to be charged by
Jan 1970
banks on advances against sensitive commodities.
The Agricultural Credit Board set up with Governor as Chairman to formulate

Feb 1970
and review policies in the sphere of rural credit.
The Managing Agency system abolished by the Companies Amendment Act,

April 1970
1969.
June 1970 S. Jagannathan appointed Governor.
Credit Guarantee Corporation of India Ltd. established. To facilitate bank
Jan 1971 lendings to the priority sectors. It guaranteed credit extended by scheduled
commercial banks to small borrowers and for other priority purposes.
Concerns related to Industrial sickness led to the establishment of the Industrial

April 1971
Reconstruction Corporation of India Ltd.
Convertibility of USD suspended. This brought to an end the system of fixed
exchange rates embodied in the Bretton Woods System. After an interim

Aug 1971
arrangement which lasted up to 1973, the world shifted to a floating exchange
rate regime.
State Level Bankers' Committees set up to consider problems requiring inter-

Oct 1971
bank coordination.
Differential Interest Rate Scheme Introduced which envisaged concessional

March
interest rates on advances made by Public Sector Banks to selected low income
1972
groups.
"Oil Shock" when oil prices quadrupled. This led to double digit inflation as
well as global recession.
As a response the Bank deployed a series of restricted measures to contain /

1973
moderate the expansion of bank credit.
Call money rate rose to an all time high of 30% prompting the Indian Banks'
Association to intervene and fix a ceiling of 15%.
Sept. 1973 Miscellaneous Non Banking Companies (Reserve Bank) Direction, 1973
sought to regulate the acceptance of deposits by companies conducting prize

chits, lucky draws savings schemes, etc.
Restrictions on SBI and its subsidiaries removed to bring them on par with
Nov. 1973
other commercial banks.
Foreign Exchange Regulation Act, 1973 came into force to conserve foreign
Jan 1974
exchange. Its administration was entrusted to the Reserve Bank.
Asian Clearing Union (ACU) established to facilitate payments for current
international transactions on a multilateral basis. Clearing operations were to be

Dec 1974
denominated in member's currency or AMU which would be equivalent to 1
SDR. Clearing operations commenced November, 1975.
Reserve Bank of India (Amendment) Act, 1974 widened the powers of the
Dec 1974
Bank.
Regional Rural Banks were set up as alternative agencies to provide credit to
rural people in the context of the 20 Point Programme.These were expected to

Sept. 1975
"combine the rural touch and local feel, ……with the modern business
organisation…”.
Foreign Currency (Non Resident) Account Scheme introduced in USD and

Nov 1975
GBP To encourage private remittance from abroad.
Agricultural Refinance Corporation (ARC) renamed Agricultural Refinance

Nov 1975
and Development Corporation (ARDC) and its activities widened.
1975 20 point economic programme introduced.
Feb 1976 Duty Draw back credit scheme introduced as an export promotion measure.
1976 Village Adoption Scheme for banks introduced.

A new series of Money supply introduced the concepts of M1, M2, M3 etc.
Money supply with the public consisted of
(a) currency with the public,

April 1977
(b) demand deposits of all commercial banks, of state, central and urban
cooperative banks and of salary earners societies, and
(c) 'Other deposits with Reserve Bank of India'.
May 1977 M. Narasimham appointed Governor up to November 30.
Integrated Rural Development Programme (IRDP) initiated as a poverty

1977
alleviation measure.
Dec 1977 I.G. Patel appointed Governor.
Notes of Rs 1,000/-, Rs 5,000/- and Rs 10,000/- denominations demonetised to
Jan 1978 curb 'the illicit transfer of money for financing transactions which are harmful
to the national economy…'.
RBI commenced gold auctions on behalf of Government of India out of

May 1978
government stock at fortnightly intervals.
The Deposit Insurance Corporation (DIC) took over the undertaking of the
May 1978 Credit Guarantee Corporation of India Ltd. (CGCI) to form the Deposit
Insurance and Credit Guarantee Corporation (DICGC) w.e.f. July 15, 1978.
RBI Act amended. The amendments were made mainly to enable the more
June 1978
effective utilization of foreign exchange reserves.
Prize Chit and Money Circulation Schemes (Banning) Act, 1978 came into
Dec 1978
force w.e.f. 12 December, 1978.
1978 Annual Appraisal of Banks introduced in the nature of management audit

introduced. Emphasis mainly on the examination of the organizational set-up,
manpower planning, machinery for supervision and control over branches,
systems & procedures in key areas, funds management and management of
credit.
March Penalty for non-compliance of CRR & SLR introduced to give the Reserve
1979 Bank teeth to implement Monetary Policy measures more effectively.
Rural Planning and Credit Cell set up in the Reserve Bank of India to ensure
1979
proper implementation of the multi-agency approach to credit in rural areas.
Credit Information Review started being published every month To
Aug 1979 disseminate in simple language and without delay the credit and banking policy
decisions of the Reserve Bank.
Jan 1980 International gold prices soar to all time highs.
Banks required to provide financial support to implementation of 20 point

Mar 1980
programme to improve lot of weaker sections.
Sixth Five Year Plan.
Six private sector banks nationalised “…in order further control the heights of
the economy, to meet progressively, and serve better, the needs of the
April 1980
development of the economy and to promote the welfare of the people in
conformity with the policy of the State…”
Recommendations of Chore Committee related to the cash credit system,
Dec 1980 adopted. Emphasis on increasing contribution for working capital requirements
by borrowers out of internal resources.
Jan 1981 Neighbourhood Travel Scheme (NTS) introduced.

GOI announced special bearer bond To mop up unaccounted money and
Jan 1981
channelise it to productive purposes.
Major Organisational internal restructuring in the Reserve Bank. New

April 1981
Departments set up.
Build up of inflationary pressures and adverse movement in foreign trade
1981 following the hike in oil prices. Bank rate raised to 10%, CRR raised to 7.5%,
SLR to 35%.
Ordinance prohibiting companies (including Banking Companies) cooperative
societies, firms, to repay any person any deposit otherwise than by an account
July 1981
payee cheque / bank draft when such repayment amounted to Rs. 10,000 or
more.
Export Import Bank of India established with the objective of providing
Jan 1982 comprehensive package of financial and allied services to exporters and
importers.
Jan 1982 New 20 point programme announced by the PM.
National Bank for Agriculture and Rural Development (NABARD) established
on the basis of the National Bank for Agriculture and Rural Development Act,
July 1982 1981. '…For providing credit for the promotion of agriculture, small scale
industries, cottage and village industries, handicrafts, and other rural crafts for
promoting integrated rural development and securing rural prosperity…'.
Sept. 1982 Manmohan Singh appointed Governor.
1983 C D Deshmukh Memorial Lecture introduced as an annual event in Governor

Deshmukh's honour
National Clearing Cell (NCC) set up by the bank to introduce mechanised

Nov 1983
cheque processing and the national clearing of cheques.
Banking Laws (Amendment) Act, 1983 widened the activities that banks could
undertake (such as leasing), provided nomination facilities to account holders,
Jan 1984 strengthened the powers of the Reserve Bank, streamlined returns and
prohibited unincorporated bodies from accepting deposits from the public
except to a specified extent amongst others.
Urban Banks Department formed to supervise the affairs of Urban Cooperative

Feb 1984
Banks.
Authorised capital of the Deposit Insurance and Credit Guarantee Corporation

May 1984
raised to Rs 50 crores
Jan 1985 A Ghosh appointed Governor up to February 4
Feb 1985 RN Malhotra appointed
S. Chakravarty Committee was set up to review the working of monetary

April 1985
system. Its recommendations had far reaching consequences.
By mid-1985, the statutory preemption on banks' resources in the form of the
1985 Statutory Liquidity Ratio (SLR) and the Cash Reserve Ratio (CRR) exceeded
45%.
Nov 1986 182 days TB introduced.
Board for Industrial and Financial Reconstruction set up and became

Jan 1987
operational wef May 1987 reflecting concerns related to Industrial Sickness.
Magnetic Ink Character Recognition (MICR) technology introduced for cheque
Mar 1987
clearing. Efforts at mechanising cheque clearing operations.
Indira Gandhi Institute of Development Research (IGIDR) was established by

28 Dec
Reserve Bank as an advanced studies institute to promote research on
1987
Development issues from a multi-disciplinary point of view.
Security & Exchange Board of India (SEBI) established to deal with the
April 1988
development and regulation of the securities market and investor protection.
The Discount and Finance House of India, set up as a money market institution,
April 1988
commenced operations.
The National Housing Bank established as an apex body of housing finance and
Jul 1988
to promote activities in housing development.
Stock Holding Corporation of India Ltd. (SHCIL) a depository institution

Aug 1988
commenced operations.
Maximum lending rate abolished. Banks free to charge customers according to

Oct 1988
their credit record.
Certificates of Deposit (CDs) and Commercial Paper (CPs) introduced in India

Mar 1989
to widen the monetary instruments and give investors greater flexibility.
Banking, Public Financial Institution and Negotiable Instruments Laws
April 1989 (Amendment) Act, 1988 enacted to encourage the culture of use of cheques in
India. It introduced penalties for the dishonour of cheques.
April 1989 Service Area Approach for rural lending became operational.
July 1989 CRR raised to 15 per cent taking statutory preemptions of banks' resources in
the form of the Statutory Liquidity Ratio (SLR) and the Cash Reserve Ratio
(CRR) to over 53%.
Agriculture and Rural Debt Relief Scheme, 1990 providing debt relief upto Rs
May 1990 10,000 to small borrowers from Public Sector Banks and Regional Rural Banks
announced.
Dec 1990 S. Venkitaramanan Governor.
Source: RBI, CHRONOLOGY OF EVENTS, 2003.

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COMPARATIVE ANALYSIS OF CUSTOMER SATISFACTION IN

FOUR SELECT PUBLIC AND PRIVATE SECTOR BANKS IN

A THESIS SUBMITTED TO THE

MS. AIMAN AKBAR ALI PEERZADE

M.Com, NET (COMMERCE), SET (COMMERCE).

UNDER THE GUIDANCE OF

DR. (MRS.) SUCHITRA S. KUMAR

GURU NANAK KHALSA COLLEGE OF ARTS, SCIENCE AND

Signature of the Candidate

Ms. AIMAN AKBAR ALI PEERZADE

Signature of the Guide

DR. (MRS.) SUCHITRA S. KUMAR

This is to certify that the thesis entitled "COMPARATIVE ANALYSIS OF CUSTOMER

DR. (MRS.) SUCHITRA S. KUMAR

Research Supervisor / Guide

It is my pleasant duty to thank a number of people who have helped me directly or

Place: Mumbai Ms. Aiman Akbar Ali Peerzade

1.1 Public Sectors.

1.1.1 State Bank of India.

1.1.2 Union Bank of India.

1.2 Private Sector Banks.

1.2.1 ICICI Bank Ltd.

1.2.2 HDFC Bank.

1.3 Chapterisation Scheme.

2.1 TRADITIONAL APPROACH OF BANKING.

2.1.1 Origin of Worldwide Banking.

2.1.2 Origin of Indian Banking.

2.1.3 Evolution of Indian Banking

2.2 Modern Approach of Banking.

2.3 Important Literature Reviews of Banking.

3.1 Introduction to Research Methodology.

3.2 Statement of the Study or Problem.

3.3 Objective of the Study.

3.4 Hypothesis of the Study.

3.5 Sampling Design.

3.6 Method of Data Collection.

3.8 Limitation of the Study.

04 Data Analysis and Interpretation.

4.1 Descriptive Analysis.

4.1.1 Public Sector Banks.

4.1.2 Private Sector Banks.

4.1.3 Weighted Average Means of Public Sector Banks.

4.1.4 Weighted Average Means of Private Sector Banks.

4.1.5 Grand Means for Public Sector Banks.

4.1.6 Grand Means for Private Sector Banks.

4.2 Inferential Analysis.

The Following Hypothesis has been Tested by using Chi Square

5.6.2 Inference for standarized Estimate for Public Sector Banks.

Structural Equation Modeling (SEM) for Overall Satisfaction for

5.7.1 Inference for Unstandarized Estimate for Public Sector Banks.

5.7.2 Inference for standarized Estimate for Public Sector Banks.

Overall Comparison for Overall Satisfaction [Public Sector Banks

5.10 Overall Conclusion.

06 Finding, Conclusion and Suggestion.

6.1.1 Public Sector Banks.

6.1.2 Private Sector Banks.

6.1.3 Summary of Weighted Average means of Banks.

6.1.4 Summary of Grand Mean.

6.1.7 Hypothesis Testing.

6.2 Conclusion and Suggestion.

Communalities for Service Quality for Public Sector

How effectively a product or service meets or beyond a customer's expectations is

1.1Public Sector Banks:

1.1.1 State Bank of India