Service Quality in Public and

Private Sector Banks in Punjab

By:
Giridhar
Srinivas
 INTRODUCTION
The Indian banking system consists of 26 public
sector banks, 25 private sector banks. Public-sector
banks control nearly 80 percent of the market,
thereby leaving comparatively much smaller shares
for its private peers. Banks are also encouraging
their customers to manage their finances. Many
business firms are channeling more efforts to retain
existing customers rather than to acquire new ones
since the cost of acquiring new customer is greater
than cost of retaining existing customers.
 Banking in India - History
 Banking in India originated in the last decades of
the 18th century.
 The first bank was The General Bank of India,
which started in 1786.
 Bank of Hindustan was the 2nd bank, which started
in 1790; both are now defunct.
 The oldest bank in existence in India is the State
Bank of India, which originated in the Bank of
Calcutta in June 1806, which almost immediately
became the Bank of Bengal.
 1994 private banks are originated.
 OBJECTIVES
1)To evaluate the performance of Public and Private
sector banks on the basis of quality of the services.
2) To compare the public and private sector banks on
the basis of customers expectation and perception of the
quality of service.
3) To find the gap between customers expectations and
perception of quality of services for public and private
banks.
 RESEARCH METHODOLOGY
Research Design-
• Data Collection-
Source of data- primary data
• Sampling unit-
Banks
• Sample Size-
300 respondents
• Target Population-
Customer of public and private sector banks in phagwara
• Target Area-
phagwara
• Sampling Technique-
Convenience sampling
• Statistical Tool-
T-test, mean, Standard deviation
 HYPOTHESIS
• There is no significant difference in perception of
customer of public and private banks.
• There is no significant difference in expectation of
customer of public and private banks.
• There is no significant difference in service gap
between public and private sector banks.
 Data Analysis
Demographic Characteristics Private sector Banks Public sector Banks

Frequency % age Frequency %age

Total N= 150 Total N= 150
Gender
Male 103 68.6 96 64
Female 47 31.3 54 36

Age

18-24 Years 15 10 17 8.82

25-31 Years 48 3.125 34 4.41

32-38Years 33 4.54 37 4.05

39-45 Years 25 6 17 8.82

46-52 Years 21 7.14 24 6.25

53-59 Years 06 25 12 12.5

60 Years and above 02 75 09 16.6

Marital Status
Unmarried 41 3.65 34 4.41

Married 109 1.37 116 1.29

 Data Analysis

6 2
15

21

Age
18-24 Years
25-31 Years
32-38Years

48
25 39-45 Years
46-52 Years
53-59 Years
60 Years and above

33
 Data Analysis
Mean Std. Deviation t-value Sig.
PUBLIC SECTOR BANKS

3.499 0.6824 7.506 .000

PERCEPTION

4.639 0.7111
EXPECTATION
 Data Analysis
Mean Std. Deviation t-value Signific
ance
PRIVATE SECTOR BANKS

PERCEPTION 3.755 0.5568 4.011 .000

4.424 0.6514
EXPECTATION
 RESULT AND ANALYSIS
• It was found from the analysis of data that service
quality plays a vital role in consumer’s perception.
• The result of the study found that there is significant
difference between customers of public and private
sector banks. The data revealed that the customers of
private sector banks perceived better service quality as
compare to customers of public sectors banks.
• The study revealed that there exists a significant
difference in expectations of customers of public and
private sectors banks.
• There exists a significant difference in service gap
between private and public sector banks.
 CONCLUSION
• The service quality was found better in private banks
when compared to public banks.
• It was found that expectation of customers with
regard to service quality is on higher side in public
sector banks in comparison to private sector banks.
• In case of private sector bank customer perceived
better service quality as compare to public sector
banks.
Thank You