International Research Journal of Finance and Economics ISSN 1450-2887 Issue 59 (2010) EuroJournals Publishing, Inc. 2010 http://www.eurojournals.com/finance.

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Employee Evaluations of Customer Satisfaction: A Comparative Study between Public and Private Banks in India
Uma Sankar Mishra Siksha O Anusandhan University, Bhubaneswar, India, PIN- 751030 E-mail: uma_mishra_mba@yahoo.co.in Bibhuti Bhusan Mishra Siksha O Anusandhan University, Bhubaneswar, India, PIN- 751030 E-mail: bbmishra@hotmail.com Saroj Kanta Biswal Siksha O Anusandhan University, Bhubaneswar, India, PIN- 751030 E-mail: saroj_biswal@rediffmail.com Bidhu Bhusan Mishra Utkal University, Bhubaneswar, India, PIN- 751004 E-mail: bidhubhusanmishra@hotmail.com Abstract The success or failure of a business depends on what of customer relationship it practices. In the modern world of competition, growing consumerism, and information explosion, the one single element that stands out as the factor of success is the customer satisfaction. As electronic banking becomes more prevalent, now-a-days customers are evaluating banks based more on their high-touch factors than on their high-tech factors in most of the developing economy like India. At this backdrop, the major problem before the commercial banks, more particularly the public sector banks in India which were operating in a sheltered regime after nationalisation, is their long-run survival and forging way ahead by retaining their valued customers. The current research paper attempts to make a comparative study of perceptions of bankers relating to the service quality and level of customer satisfaction of the offers.

Keywords: Bankers, Customer Satisfaction, Service Quality, India JEL Classification Codes: M31, G21, C83

1. Introduction
India has long been characterized by a dense network of financial institutions. Since independence in 1947, an active promotional role has been played by the Government, led by the Reserve Bank of India (RBI) in setting up financial institutions. Today, in addition to the RBI, the banking network includes commercial and cooperative banks, national and state level development banks, and host of other nonbanking financial institutions. India launched a programme of stabilization and structural reforms in 19911992 with the prime objective of improving the productivity and efficiency of the entire economic system and

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imparting greater competitive and structural flexibility. Reform of the financial sector constitutes a crucial component of Indias programme towards economic liberalization (Rangarajan, 2003). The banking industry in India has undergone a radical change in the last two decades. When the 90s saw the revamping of Banking industry and setting up of new generation private sector banks, the first decade of the 21st century will precede a little further (Samal, 2005). Now the banking has become too open and competitive. The basic focus and direction has changed from a level of whatever business available to get every thing possible. Even the flow of business movement has changed from Customers door bank to Bankers customers doorstep. Earlier, a common man was thinking whether he can open a bank account and now every day one finds a sales / marketing trainee of some private bank approaching you (a big customer) with host of offers and requesting you to be their customer. Earlier, no banker easily agreed to nurse a small customer more so a small borrower. Now every bank boasts of being a retail bank. Today retail loans are sold and marketed like any other product (Haldipur, 1998). Every thing is now being sold under the umbrella of banking. Now banks are over enthusiastic to sell so called third-party products and substantial amount of fee based income by using their banner and services through existing customer relationships. They sell both life insurance and non-life insurance products in the name of Bank-assurance. They sell all mutual funds and issue credit cards. Banks ATMs are now refilling mobile pre-paid cards of several companies. Banks have created a separate department to handle utility bill payments. Banks offer online railway ticket booking through internet. Survival of the fittest is the order of the day. Customer service has become quite important in the present day situation as competition is increasing among the banks. Every one is trying to woe the same customer. Retaining the existing customers and attracting new ones has become very difficult; more so for the public sector banks (Bhatt, 1990). Public sector banks have their own limitations as they have to achieve twin objectives of profitability and social objectives. Again, the large number of branches; more so in non-banking areas, may fulfil the social objectives. But they may not be a viable proposition for running business. Similarly, the new generation private sector banks with limited branches and heavy focus on urban markets may face a limited area to operate. Bankers are an integral part of the banking system. They are the bridge between the organisation and the customers. They came in contact with the customer regularly and are in a better position to understand the expectations of the customers. As a service provider, their roles are quite important in changing the perception of customers. As indicated in different studies, the perception of quality of services and customer satisfaction depends on the banker (Adrian 1995, Bateson 1995 and Parasuraman et al 1991). Service quality is meeting customers needs matching to their expectations (Howcroft, 1991). The bankers are also responsible for lowering the cost of services and improving productivity (Garvin 1983, and Kotler 1999). Customer service has been described as the ultimate tool to counter competition (Davidow and Uttal 1989). Poor quality places the bank in a disadvantages position and customers may shift to competing banks. At this backdrop, the study of bankers and their views about the customers are quite important for formulating sound polices for the future. An analysis of services provided by the banks and the customers point of view might sound interesting at this juncture. Such analysis will provide the banks with a quantitative and qualitative estimate of their services as perceived by the bankers. Again from interactive marketing point of view, the banks should motivate their staffs to provide better deal to the customers as interactive marketing calls for involvement of all employees to satisfy the customers. The bankers through their daily interactions are in a better position to understand the customer. Keeping these broad issues in mind, the objectives of the present paper are To analyse the views and perception of bankers on understanding the customers To find out the reasons for customers satisfaction or dissatisfaction at business potentiality as evaluated by bankers To have the information on improvement in service quality from bankers point of view.

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2. Background
The bankers are the significant part of banking service. Bankers can not be separated from the service. In reality, customers buy the bankers when they buy a banking service (Berry L. L et al, 1992). Despite the rapid growth and internationalisation of the services sector, particularly banking services, bankers today realize that to successfully leverage service quality as a global competitive tool, they first need to correctly identify the antecedents of what the international consumer perceives as service quality (Petridou E et al, 2007). Functional, mechanic, and humanic clues play specific roles in creating the customers service experience, influencing both rational and emotional perceptions of service quality (Berry L. L et al, 2006). Service quality must be viewed as a strategic management process that affects every aspect of bank service marketing and produces real, quantifiable benefits like greater customer satisfaction and retention (Quality Focus Institute, 1991). Just as people cannot live without eating, companies cant survive without having satisfied customers (Gould G, 1995). Service providers should exceed customers expectations by considering three selective dimensions, viz. value, service, and dealing with complaints. Hallowell Roger (1996) measured customer satisfaction in banks and found that it is wise for any bank to target and serve only those customers whose needs it can meet better than its competitors in a profitable manner. These types of customers will remain for longer periods, consume multiple products; recommend the bank to their friends and relations who may be the source of superior returns to the banks shareholders. Aurora and Malhotra (1997) tried to give some idea about factors determining customer satisfaction, the level of customer satisfaction and some marketing strategies in both private and public sector banks in India. They have found six factors of customer satisfaction in public sector banks, viz., routine operations, price, situational, environmental, technology, and interactive. But in private sector banks, there exists seven factors in total, having staff factor as the first ranked and situational factor as the lowest ranked items. Instead of price factor, promotional factor has been explored by researchers in private sector banks. As compared to public sector, private sector bank customers level of satisfaction is comparatively more. Proper training and development of bank staff, regular market survey, personalizing the service, efforts to avoid long queues in bank, and attractive environment are key suggested strategies in public sector bank. In order to improve overall customer satisfaction, the bank should prioritise the allocation of resources to increase the perceived quality of their product offerings (Krishnan et al, 1999). The researchers identified four quality attributes as being critical to determining satisfaction with product offerings, viz. product variety which creates customers to consolidate services in one place, ease of opening and closing of accounts, competitive interest rates and fees, and lucid information on all products and services. The operationalization of customer satisfaction in banking sector is somewhat hazy, and it should be operationalized along the same dimensions that constitute service quality (Sureshchandar et al, 2002). According to Liang et al (2004), the service quality attributes are of two types; one is product related, and the other one non-product related. These two types of attributes may create the perception of functional benefits, symbolic benefits or experiential benefits among customers. The study results strongly highlighted the fact that customer satisfaction positively affects customers trust and commitment on service provider, which in turn affects customers behavioural loyalty. In the most of the regional rural banks, customer satisfaction refers to the customer judgment on marketing inclined aspects of bank products and / or services in rural settings by comparing pre-purchase expectations with accumulated experience with the banks having maximum transactions (Sharma et al, 2004). The study suggests 5 steps of strategic action for rural banks, namely identification, measurement, creation, maintenance, and monitoring customer satisfaction by keeping higher level of rating in measurement scale. Delight as a construct differs significantly from customer satisfaction (Berman B, 2005). While satisfaction is more cognitive, delight is more affective. While satisfaction is schema-based, delight requires recreating the schema. The conceptual difference between satisfaction and delight can be used as a basis for bankers to determine their degree of customer satisfaction, as well as a guide to

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management strategies that can increase customer satisfaction levels. One of the research studies in retail banks show that image is both directly and indirectly related to retention via satisfaction, while perceived service quality is indirectly related to retention via satisfaction (Kassim N M et al, 2007). The commercial banking industry like many other financial service industries is facing a rapidly changing market, new technologies, economic uncertainties, fierce competition and more demanding customers and the changing climate has presented an unprecedented set of challenges (Jham V et al, 2008). Banking is a customer oriented services industry, therefore the customer is the focus and customer service is the differentiating factor. The purpose of one empirical study done by Dutta et al, 2009, is to investigate the expectations and perceptions of the customers across the banking sectors in India. It was found that in the banking sector it is the foreign banks which are perceived to be offering better quality of services followed by the private and then public banks (Dutta K et al, 2009). These perceptions are reflected in the financial performance of the banks also. It is an eye opener for the banks to see the gap between customer expectation and perception regarding the quality of services rendered which should further act as a motivator to enhance reputation and gain customer loyalty. This will in turn give them the elusive competitive edge they are looking for.

3. Design of Study
The study is based on primary data collected through a structured questionnaire from executives, officers and staff of both public and private sector banks operating in India. The questionnaire was designed after making a pilot survey soliciting the views of the bankers regarding these issues. The questionnaires were sent through professional investigators to collect the data from pre-determined samples covering both public and private sector banks operating in rural and urban areas in different sizes. Then, follow-up interviews were made either telephonically or personally to solicit further views in this matter. Ultimate, data from 314 bankers were collected, which were analysed in the subsequent sections. The data are processed through SPSS (statistical package for social sciences) and analysis was made by drawing cross-tables, calculating percentage, and by applying factor analysis where-ever reduction of factors are required. 2 test, is applied to test the significance of the results wherever it is considered to be necessary.

4. Profile of Bankers
The data collected from the respondents were classified mainly by three parameters; namely type of bank, size of bank, and the location of the bank. Table 1 describes the profile of the sample 314 bankers. The size of the banks is defined on the volume of business of the concerned branch of the bank. However, the respondents in most of the cases mentioned about the size of the branch. For simplicity the size of the bank is defined as, a branch having business up to Rs.25 crore is small, between Rs.25 75 crore is medium, and above Rs.75 crore is large.
Table 1: Profile of Bankers
Variables Public Private Large Medium Small Rural Urban Frequency 236 78 96 180 38 66 248 314 % to Total 75.16 24.84 30.57 57.32 12.11 21.02 78.98 100.00

Parameters Type of Bank Size of Bank Location of Bank Total

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Out of the total sample, 75.16 per cent of the bankers belong to public sector banks and rest 24.84 per cent are from private sector banks including one foreign bank. The higher percentage of public sector banker is quite evident from the larger number of public sector banks correspond to private banks operating in sample extent. Similarly size-wise; middle-sized branches (57.32%) dominate the sample. Again more number of urban branches explains the inherent limitations of data collection. More number of branches concentrates in urban areas and accessing them is easier compared to widely disperse rural branches. All the private banks are operating only in major cities of the country

5. Bankers Attitude and Levels of Customer Service

Customer service focuses on satisfying the needs of customer at the right time and in a right manner. This involves the staffs - the service delivers, for delivering better satisfaction to the customers. All this indicate right kind of attitude of bank personnel in delivering the services. Similarly, customer quality is quite important, as the bank will focus on high value customers for better business and higher profitability. Table 2 discusses the views of the bankers relating to five different factors indicating the service levels in two types of bank profile variations.
Table 2:
Parameters Poor Satisfactory Good Very Good Excellent Total Poor Satisfactory Good Very Good Excellent Total

Attitude of Bankers by Type of Bank

a f 0 38 60 66 72 236 0 0 6 30 42 78 % 0.00 16.10 25.42 27.97 30.51 100.00 0.00 0.00 7.69 38.46 53.85 100.00 16.12* f 12 26 60 72 66 236 0 0 12 18 48 78 b % 5.08 11.02 25.42 30.51 27.97 100.00 0.00 0.00 15.38 23.08 61.54 100.00 17.23* f 18 38 72 54 54 236 0 0 30 12 36 78 c % 7.63 16.10 30.51 22.88 22.88 100.00 0.00 0.00 38.46 15.38 46.15 100.00 16.15* f 24 24 80 54 54 236 0 6 18 18 36 78 c % 10.17 10.17 33.90 22.88 22.88 100.00 0.00 7.69 23.08 23.08 46.15 100.00 10.79** f 26 30 54 72 54 236 0 12 20 22 24 78 5.33 d % 11.02 12.71 22.88 30.51 22.88 100.00 0.00 15.38 25.64 28.21 30.77 100.00

Public

Private

Chi-Square

a- Services Rendered b- Attitude of Officers c- Attitude of Other Staffs d- Level of Customers e- Customer Retention * 1% Level of Significance ** 5% Level of Significance

Table 2 describes the service factors in types of bank variation. The Table reveals that the variations among the private and public sector banks are statistically significant in all the parameters except customer retention. This implies that the private banks have a cutting edge over their counter parts in terms of standards of services rendered, attitude of staff and types of customers. About 20 percent of the public sector banks in all the five parameters are either poor or satisfactory as rated by themselves, while none of the private banks rated them in these categories except a small percentage of customer retention. Most of the private banks rated themselves as excellent in those parameters (a = 53.85 5, b = 61.54 %, c = 46.15 %, d = 46.15 %, and e = 30.77 %), as compared to a very low score for public sector banks.

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6. Bankers Perception for Improvement in Service Quality

Quality of service is one of the important dimensions of providing satisfaction to the customers and also retaining them in business. When the sample bankers are contacted they have attributed several strategies to improve the service quality, which are shown in Table 3.
Table 3: Analysis of Perception of Bankers for Improvement in Service Quality

(Figures in Percentages)
Factors Attitude to Service of Employees Care and Concern fro the Customer Attracting and Retaining Customers Customise Product and Services Physical Facilities Relationship Banking Prompt Attention to Customer Needs Competitive / Flexible Prices Information Technology Employee Development Appointing More Service Personnel Qualitative and Productive Customers Branch Head / Controlling Office Promotion of Products Job Redistribution Employee Behaviour Understanding Customer Needs Customer Choice Changing Branch Location Customer Counselling Respondents (Number) Type of Bank Public Private 8.47 15.38 16.10 15.38 0.00 7.69 3.39 15.38 32.20 15.38 7.63 23.08 10.17 7.69 7.63 0.00 21.19 15.38 2.54 7.69 15.25 7.69 0.00 7.69 0.00 7.69 2.54 0.00 2.54 0.00 5.08 0.00 2.54 0.00 2.54 0.00 2.54 0.00 2.54 0.00 236 72 Large 16.67 35.42 0.00 6.25 31.25 16.67 14.58 4.17 18.75 0.00 4.17 0.00 0.00 0.00 0.00 6.25 0.00 4.17 0.00 0.00 96 Size of Bank Medium 6.67 6.67 3.33 7.78 24.44 10.00 6.67 6.67 20.00 0.00 16.67 3.33 3.33 3.33 3.33 3.33 3.33 0.00 0.00 3.33 180 Small 10.53 10.53 0.00 0.00 36.84 5.26 10.53 5.26 21.05 31.58 21.05 0.00 0.00 0.00 0.00 0.00 0.00 5.26 15.79 0.00 38 Location of Bank Rural Urban 3.03 12.10 0.00 20.16 0.00 2.42 0.00 8.06 21.21 29.84 3.03 13.71 0.00 12.10 9.09 4.84 18.18 20.16 9.09 2.42 39.39 6.45 0.00 2.42 0.00 2.42 9.09 0.00 9.09 0.00 9.09 2.42 9.09 0.00 0.00 2.42 9.09 0.00 9.09 0.00 66 248

The above table indicates that the strategies suggested by the bankers in order of their performances are physical facilities, use of information technology, concern for customers and appointing more service personnel (staff). Again, remarkable difference exists in the perception of bankers with regard to the size and location variations. For example, the perceptions of bankers regarding concern for customers indicate noticeable differences between large and medium branches (35.42 % and 6.67 %), and between rural and urban branches (0.00 % and 20.16 %). Similarly, the perceptions regarding appointing more staff indicate substantial difference between public (15.25) and private (7.69), large (4.17 %) and small (21.05 %), and rural (39.39 %) and urban (6.45 %)). But the factor like physical facilities and use of information technology, consistently been rated as important by all the groups of bankers. Similarly, two other factors like prompt attention to customer needs and attitude of employees to serve receives varied response. To sum up, in the changing environment the bankers are depending more on physical and technological factors on one hand and the functional (staff) factors on the other. This trend is in handto-hand with any service industry, as they represent the functional quality and human touch to make the service better satisfying. Hence, by giving attention to the above cited factors, the present level of service delivered can be improved.

7. Customer Satisfaction
Quality has been recognized as a strategic tool for attaining operational efficiency and improved business performance, and is one of the most important parameter of customer satisfaction (Anderson and Zeithaml, 1984; Babakus and Boller, 1992; Garvin, 1983; etc.). Several authors have discussed the unique importance of quality of service firms (Norman, 1984; Shaw, 1978; etc.) and have

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demonstrated its positive relationship with customer satisfaction and repeat purchases (Anderson et al, 1994; Boulding et al, 1993; Rust & Oliver, 1994; etc.). One of the obvious conclusions is that firms with superior quality products outperform these marketing inferior quality products (Jain & Gupta, 2004). Customer satisfaction is a complicated mix of hard wares (technology, product, price, quality, etc.) and soft wares (attitude, responsiveness, deliverance, communication, etc.). On one hand, it is a curious mix of facts, and on the other, the perception of customers (Ravichandran & Thyagarajan, 1998). Thus, customer satisfaction means not only giving the customer a good product, but also ensuring customers feel that he can get a genuine product. Therefore, customer satisfaction is a guide; and product and technology are the focus to achieve business objectives. As the customer expectations keep on changing with changing environment, customer satisfaction becomes a dynamic issue and a determined effort is to be continuously made to accesses it (Ravichandran et al, 1998). In a competitive environment, identification of customer needs these are not being addressed properly, will give a wide scope for development. In recent years, consumer satisfaction / dissatisfaction (CS / D) has begun to emerge as a major topic in the field of consumer research (Keith Hunt, 1977). In a rapidly expanding competitive environment, banks are no longer confined to their traditional activities, but are venturing into unknown financial territories (Mishra & Sarangi, 2000). The fierce competition has compelled all the banks to analyse themselves and to devise suitable strategies based on the concept of customer satisfaction providing the customer with what he wants, when he wants, and where he wants (Lewis & Smith, 1989; Aurora & Malhotra, 1997; Mishra & Sarangi, 2000). The level of customer satisfaction has becoming one of the major targets in the hands of bankers to increase their future business. The perception of bankers (the service providers) regarding the reasons of customer satisfaction / dissatisfaction (CS / D) measured with 20 variables have been presented in Table 4. These variables have derived from earlier studies done by Parasuraman et al. (1989), Lewis & Smith (1989), Kaplan and Sagare (1995), Gaviri & Asthana (1997), etc.
Table 4:
Sl. No. A B C D E F G H I J K L M N O P Q R S T

Variables Representing Satisfaction Level

Variables Service Charges Attitude of Staff Speed of Transactions Decor of the Bank Interest rates on Loans Interest rates on Deposits Introduction of new products/ services Levels of Computerization Physical Facilities Inside Atmosphere Banker Customer Relationship Quality of Service Customer Feelings A/c Opening Time Banks Publication Matching to Customer Attitude Banks Policies Efficiency of Staff Knowledge Level of Staff Communication with Customers Public Satisfaction Dissatisfaction 3.36 4.50 4.46 3.94 3.44 3.70 4.49 3.95 3.92 3.78 3.33 3.90 3.70 3.57 3.60 3.50 2.94 3.89 4.06 3.46 Private Satisfaction Dissatisfaction 2.89 4.77 4.77 4.58 2.47 2.94 4.72 4.88 4.80 4.24 3.11 3.41 3.94 3.75 3.70 2.91 3.44 4.00 3.37 3.23

Table 4 depicts the bankers perception about customer satisfaction/dissatisfaction measured in a 5-point Likert scale for 20 items. Since the mid-point in the scale is 3, 3 to 5 is considered as

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satisfaction, while 1 to 3 as dissatisfaction. The major reasons for dissatisfaction with public sector banks is the rigid policy, while for the private banks it is mostly service related factors like service charges, interest rates on loans & term deposit and matching to customers attitude. Again for variables like Attitude of Staff, Speed of Transactions, Decor of the Bank, Physical Facilities, Computerization and Introduction of new & innovative products; the Private Banks are far ahead of their counterparts. But one variable i.e. Knowledge level of Staff for public sector banks is higher than the private banks. This trend may be evident, as the Private Banks spends heavily on developing infrastructure, but the investment on staff is more in public sector ones, indicated by better knowledge about banking products / services.
Table 5:
Components 1 2 3 4 5

Total Variance Explained (Rotation sums of Squared Loadings)

Eigen Value 5.060 3.965 3.121 2.170 1.338 Public % of Variance 25.300 19.823 15.603 10.852 6.690 Cumulativ e% 25.300 45.123 60.726 71.578 78.268 Eigen Value 8.964 3.978 3.222 2.364 0.855 Private % of Variance 44.821 19.888 16.612 11.821 4.273 Cumulativ e% 44.821 64.709 81.322 93.143 97.416 Eigen Value 4.422 3.749 3.481 2.918 1.385 Overall % of Variance 22.110 18.745 17.405 14.588 6.927 Cumulativ e% 22.110 40.855 58.260 72.848 79.775

Table 5 describes the rotated sum of squared loadings to explain the variances explained by the 5 components, deduced by using PCA method of Factor Analysis. The original 20 variables were reduced to 5 components. By using varimax method of rotation, five components were found having eigen value more than 1 in public banks and for overall analysis. But in case of private banks the number of components having eigen value more than 1 is four. These extracted components explain around 78 percent changes for public sector banks, which is as high as 93 percent for private banks and overall 79 percent. Again, component 1 explains about 45 percent variance with the private banks. Component 1 has an eigen value of 5.060 explaining 25.3 percent variations for public sector banks, which is 8.964 explaining 44.82 percent for private banks and 4.422 explaining 22.11 percent variation for the whole sample. Thus, all the eigen values for 5 components and their corresponding variance explained were considered. This suggests that where the bank should invest to increase customer satisfaction. In the rotated component matrix, those variables having the higher loadings (ignoring signs) are grouped under their respective derived components or factors (Table 6). Thus, the 20 variables (reasons for satisfaction / dissatisfaction) are then loaded to five factors. After grouping the variables based on their loadings, the naming of each factor has been done. Table 6 depicts the variables under each group or factor. The factors are named as policy factor, physical factor, decor factor, customer factor, staff factor and service factor.
Table 6: Results of Factor Analysis
Factor I Policy Factor Service Charges Int. rate (loan) PUBLIC int. rate (deposit) Banker Customer Relation A/C opening time Banks Policy Banks Publication Factor II Physical & Functional Attitude of Staff Introduction of new Prod/ Service Levels of Computerization Physical Facilities Efficiency of Staff Factor III Decor of Bank Speed of Trans. Decor of Bank Inside Atmosphere Factor IV Customer Factor Customer feelings Matching to Customer Attitude Knowledge level of Staff Comm. With Customer Factor V Service Quality Quality of Service

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Staff Factor Knowledge level of Staff Attitude of Staff Efficiency of Staff Banks Publication Physical Factor Decor of Bank Physical Facilities Quality of Service Inside Atmosphere Customer Factor Customer feelings Matching to Customer Attitude

Service Charges Speed of Trans. Int. rate (loan) Int. rate (deposit) PRIVATE Introduction of new Product/ Service Levels of Computerization Banker Customer Relation A/C opening time Banks Policy Comm. With Customer Policy Factor Service Charges Int. rate (loan) OVERALL Int. rate (deposit) Banker Customer Relation A/C opening time Banks Policy Comm. With Customer

Functional Factor Quality of Service Introduction of new Product/ Service Levels of Computerization Efficiency of Staff

Physical Factor Speed of Trans. Decor of Bank Physical Facilities Inside Atmosphere

Staff Factor Attitude of Staff Banks Publication Knowledge level of Staff

Customer Factor Customer feelings Matching to Customer Attitude

8. Conclusion
Good premises and suitable location of the branch are essential for bank branches for smooth operation of banking business. When the private banks are compared with public sector banks, all the private banks have excellent locations from business point of view compared to public banks. Getting highvalue customers or more business from the existing customers is being adapted as the major strategies by the public sector banks, which is not true in case of private sector banks. For providing better service to customers proper training should be given to the staff by the banks. The rate of vanishing customers is higher in case of urban large-sized public sector banks. The more attractive private banks are able to attract new customers. Public sector banks invest and concentrate more on staff development where as private sector gives more priority on infrastructural aspects. Rigid policy of public banks creates more dissatisfaction among the customers while for private banks mostly the value of service is the key factor of dissatisfaction.

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