SERVICE QUALITY OF PUBLIC SECTOR BANKS - A STUDY

Abstract

The banking scenario in India is of a highly developed nature, even though it is still far from achieving world standards in terms of size, products and services. Indian banks have realized that along with organic growth there is a need to grow inorganically as well, in order to be competitive with other players in the market. In this scenario, banking has been the focus of attention for the banking industry. Gronross, a service marketing expert, proposed that a service firm, in order to simultaneously attain success, must develop its service quality. Firstly, it must define how the consumers perceive service quality and secondly, determine in what way service quality is influenced. Consumers all over the world have become more quality conscious; hence there has been an increased customer demand for higher quality service. Service operations worldwide are affected by this new wave of quality awareness and emphasis. Therefore service-based companies like the banks are compelled to provide excellent services to their customers in order to have sustainable competitive advantage, especially in the current trend. This study identifies quality dimensions significant to enable the banks to develop the strategies improving the quality of service delivery.  It is found through the present study that the public sector banks in Karur district are losing market share to private and foreign banks. To survive in this competitive scenario all public sector banks are forced to introduce innovative services, schemes in order to retain existing customers and attract new customers.