Service Quality Measures in Indian Banking Sector – A Comparative Study

Abstract

The commercial banking industry like other financial service industries is facing a rapidly changing market, new technologies, fierce competition, more demanding customers and changing climate. The banking industry in India has undergone sea change post independence. With the current change in the functional orientation of banks, the purpose of banking is being redefined. The main driver of this change is changing customer needs and expectations. If banking relationship is about bonding, bonds are created only when the employees develop a relationship with the customers. Customers look for a relationship with the bank when they receive benefits from its services. Increased competition, highly educated customers and increase in standard of living are forcing many banks to review their customer service strategy. This paper attempts to make a comparative analysis of level of customer satisfaction towards the services provided by Andhra bank and HDFC bank. The study has been conducted based on questionnaire method and a sample of 360 customers of each bank.  The primary data were collected with the help of a standardized questionnaire of service quality of Parasuraman which was administered to a convenience sample of 360 respondents from each sample bank in Guntur District of Andhra Pradesh.