Service Quality Assessment of Commercial Banks in Punjab
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Date
2020
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Punjab Agricultural University, Ludhiana
Abstract
The present study was undertaken with the objective of identifying the gap between perception and expectation of rural and urban customers of public and private sector banks towards the retail banking services. Further, the study anticipated to understand the problems faced by customers, their awareness and perception towards complaint redressal system and bankers‟ perception and behaviour towards complaint redressal system of commercial banks. For the purpose of study, three most populated districts (Amritsar, Ludhiana and Jalandhar) were chosen out of three socio cultural divisions (Majha, Malwa and Doaba) of Punjab. From each district three banks of public sector (SBI, PNB and Punjab and Sind Bank) and private sector (HDFC Bank, Axis Bank and ICICI Bank) each were chosen which had maximum number of branches in urban and rural areas. From each bank, one branch operating in rural and one in urban area was chosen randomly after preparing a list of these branches (dbie.rbi.org.in). Hence, in all 36 branches were contacted. Further, 20 customers were chosen from each branch on convenience cum judgmental sampling and 2-3 officers/managers/ground level officers on simple random basis. Thus, in all 720 customers and 72 bankers were surveyed. Primary data was collected from customers and bankers through two separate questionnaires prepared on the basis of SERVQUAL, satisfaction, attitude and complaint redressal system. Findings highlighted that the quality of retail banking services as perceived by the customers is better in private sector banks, resulting in higher customer satisfaction and lower customer complaints than public sector banks. Banks operating in rural areas were found to be performing better than banks operating in urban areas. Hence, the rural customers were more satisfied and facing fewer problems than urban customers. It was observed that satisfaction of customers towards the quality of banks services is the most important parameter followed by service quality of banks for determining customer attitude. Very few customers were aware about complaint redressal system. Also, there was a gap found between problems faced by the customers and complaints received by the bankers. The reason for this was that customers of banks did not fully complain about the problems faced by them to bankers as they were not aware and the bankers did not take adequate measures to educate the customers‟.
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