Comparative Study of Customer Satisfaction in Indian Public Sector and Private Sector Banks

3757 Words Oct 25th, 2012 16 Pages
COMPARATIVE STUDY OF CUSTOMER SATISFACTION IN INDIAN
PUBLIC SECTOR AND PRIVATE SECTOR BANKS
1Puja Khatri & 2yukti Ahuja
1 School of Management Studies, Guru Gobind Singh Indraprastha University, Kashmere gate, Delhi, India
2*Jagan Institute of Management Studies, 3, Institutional area, sector – 5, Rohini, Delhi – 85, India
ABSTRACT
With the advent of liberalization policy and RBI’s easy norms several private and foreign banks have entered in Indian banking sector which has given birth to cut throat competition amongst banks for acquiring large customer base and market share. Banks have to deal with many customers and render various types of services to its customers and if the customers are not satisfied with the services provided by the
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ICICI Bank also made it to the Top 100 list with a brand value of US$
2.2 billion. Following the financial crisis, new deposits have gravitated towards public sector banks. According to
RBI's 'Quarterly Statistics on Deposits and Credit of
Scheduled Commercial Banks: September 2009', nationalized banks, as a group, accounted for 50.5 per cent of the aggregate deposits, while State Bank of India (SBI) and its associates accounted for 23.8 per cent. The share of other scheduled commercial banks, foreign banks and regional rural banks in aggregate deposits were 17.8 per cent, 5.6 per cent and 3.0 per cent, respectively. Foreign exchange reserves were up by US$ 1.69 billion to US$
272.783 billion, for the week ending June 11, on account of revaluation gains.
In this era of mature and intense competitive pressures, it is imperative that banks maintain a loyal customer base.
Increasing competition from both inside and outside the country is leading to compression of profits and forcing banks to work efficiently only with the available resources. One positive fallout of competition is the greater choice available to consumers, and the increased level of sophistication and technology in banks. In order to achieve this and improve their market and profit positions,
Study of customer satisfaction in public sector and private sector banks of India
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many retail banks are directing their strategies towards increasing customer satisfaction and
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