Page 1 of 10

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 03 Issue 01

January 2017

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 152

Customers’ Satisfaction about Banking Services – A

Comparative Study of Private and Public Sector Banks

Dr.S.Bulomine Regi,

Assistant Professor, Department of Business Administration (BBA),

St.Xavier’s College (Autonomous), Palayamkottai

ABSTRACT

Banks are considered as vehicle of

finance in a nation. The finance should be

given all the parts of country in the perfect

manner. Thus, lots of banks are allowed to

run their business. Due to privatisation,

many of the private party also enter in to

banking sector. Thus, the customers have

different kinds of banks. So the satisfaction

of customers has very vital role among the

bankers. The objectives focused in this

study are i) to study about banking

services offered by public and private

sector banks and ii) to analyse the factors

influencing the satisfaction of the

customers availing banking services from

public and private sector banks in

Tirunelveli District. 200 respondents were

selected for the study, out of that 100 from

public sector and 100 from private sector

banks. The respondents are selected using

purposive sampling method. Percentage

analysis, mean rank and t-Test were used

to analyse the data. Thus, the factors

influencing on satisfaction of customers

was analysed and private sector bank

customers are highly satisfied about

banking services than public sector banks.

Keywords: Private, public, banks, finance,

economy & privatisation, Satisfaction.

Introduction

The financial sector, the world

over, is growing enormously in terms of

size, innovations, diversity, complexity

and sophistication. When one examines the

structure of the developed and the

developing economies over the last 20

years, the most striking feature perhaps is

the growth of the service sector. The

financial services sector today, is carrying

out a host of activates like intermediation,

agency services, real estate, consumer

durable financing etc. The process of

financial intermediation (being the most

traditional) still occupies significant place

in the growth of financial services sector.

Within the financial services sector, the

banks constitute an important segment of

financial intermediaries as is evident from

Page 2 of 10

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 03 Issue 01

January 2017

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 153

the fact that the aggregate deposits of the

banking sector as a whole contributes

approximately 80 per cent to the total

money supply in the Indian Economy.

The hall mark of the reorganised set up

was customer orientation. It aimed at:

 Having a total view of

customer’s need.

 Meeting the identified

needs in the best possible

manner by developing

appropriate and suitable

services.

 Identifying potential

customers and

 Conducting the activities at

the branch level on the

basis of carved out market

segments instead of job- wise activities.

OBJECTIVES OF THE STUDY

The following are the objectives focused in

the study:

1. To study about banking services

offered by public and private sector

banks.

2. To analyse the factors influencing

the satisfaction of the customers

availing banking services from

public and private sector banks in

Tirunelveli District.

SCOPE OF THE STUDY

The scope of the study is confined

to factors influence the satisfaction of

customers in select private and public

sector banks in Tirunelveli District. In

Tirunelveli District, there are many

numbers of public and private sector

banks, having huge amount of transactions

and services.

STATEMENT OF THE PROBLEM

Increased competition has also led

the banks to think of much better services

given to their customers than previously

and with the help of that avoiding the

customer switching from one to another. In

the high competition market, the roles of

customers’ satisfaction get important day

by day. After privatisation, these days the

private sector banks have very vital growth

in the banking sector. As there are

focusing profit margins, they provide

better service for each and every customer.

Thus, for the purpose of survival, banks

have to take much concern and care on the

satisfaction of their customers.

METHODOLOGY

Page 3 of 10

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 03 Issue 01

January 2017

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 154

Both primary and secondary data

were collected for the study. The primary

data were collected using questionnaire

and Purposive sampling method was

adopted to select the respondent’s i.e the

customers using banking services are

selected for the study. Four banks were

selected for the study based on IBA award

2015-16, out of that 2 banks are from

public and 2 banks are selected from

private sector. The banks are State Bank of

India and Canara Bank of Public Sector

and ICICI and AXIS of private sector

banks. Fifty respondents were selected

from each bank for the study. The

secondary data were collected from

various websites, books, journals and

magazines.

ANALYSIS AND INTERPRETATION

OF DATA

Demographic profile is one of the

important variables which decide about the

practices and usage of the respondents.

The following table clearly depicts the

demographic profile of the respondents in

the study area.

Table 1

Gender wise classification of the respondents

Gender Private Public

No. of respondents Percentage No. of respondents Percentage

Male 44 44 65 65

Female 56 56 35 35

Total 100 100 100 100

Source: Primary Data

The above table shows that out of 100

respondents, in private sector majority of

56 per cent of the respondents belong to

female and the remaining 44 per cent of

the respondents are male whereas in public

sector, 65 per cent of the respondents are

male and 35 per cent of the respondents

are female. It shows that majority of the

customers availing banking services are

female in private sector and male in public

sector banks.

Table 2

Age wise classification of the respondents

Age Private Public

No. of respondents Percentage No. of respondents Percentage

Up to 20 years 8 8 15 15