Comparative Study of Customer Satisfaction Between Public, Private and Cooperative Sector Banks in India

3950 Words Apr 27th, 2012 16 Pages
A Comparative Study of Banking Services and Customer Satisfaction in Public, Private and Cooperative Banks

N.Amuthan, Associate Professor, Department of Commerce, A.G.Government Arts College, Tindivanam, Villupuram Distsrict, Tamil Nadu.

Keywords: Transaction based Banking services, IT enabled banking services, Customer satisfaction, Service Quality.


The banking system is facing challenges with stiff competition and advancement of technology. It becomes imperative for all service providers to meet or exceed the target customers’ satisfaction with quality of services expected by them. Hence the present research is attempted to study customers’ perception of quality of services, both transaction
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The reform process started in the early 90s has given the industry a great opportunity. Not only must the sector become more efficient it must also identify sectors having growth opportunities and devise strategies to move savings into these sectors.

1.1 Current Scenario Currently, the overall banking in India is considered as fairly mature in terms of supply, product range and reach even though reach in rural India still remains a challenge for the private sector banks. Well computerized private sector banks are beginning to compete seriously with the nationalized banks. They aim at a profitable and wealthy part of the market and, in contrast to the nationalized banks, do not recognize any social responsibilities to small account holders or to a rural and semi-urban clientele. Almost 80% of the business are still controlled by Public Sector Banks (PSBs). PSBs are still dominating the commercial banking system. The banking system is facing the challenges with stiff competition and advancement of technology, the services provided by banks have become more easy and convenient. The competitive character has been promoted by facilitating the entry of foreign banks. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking are introduced. The entire system has become more convenient ad swift. Time is given more importance than money.
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