A Study on Service Quality and Customer Satisfaction in Indian Banking Sector

Indian Banking Industry is considered a booming and sustainable sector in the global financial system. Banks of the future will need to understand the customers and design products accordingly. Banks will have to use various tools to gain insights from their existing customers data to increase their business and customer loyalty. The Banking Industry today is truly at cross roads, with technology aiding globalization and integration of world‟s financial markets, there has been a quantum jump in the expectation of customer for newer products and alternative delivery channels. The present paper aims to measure the level of customer satisfaction between Public sector Banks, Private sector Banks and Foreign sector Banks. The purpose of the paper is to reveal the perceptions of the customers towards various services offered by various banks. Factor analysis and ANOVA are the statistical tools that has been used for data analysis. With the help of factor analysis various factors have been extracted to know the perceptions of the customers towards various services offered by banks. ANOVA has been applied to identify the demographic profile and its impact on customer perceptions regarding services offered by banks. Primary data was collected from 600 respondents from the two main cities of Northern India; Delhi and Chandigarh. Implication of this research will help the banks to know the various factors which affect the customer perceptions and bank may use these factors to drive customer loyalty.