Service Quality In Banking Industry Essay

Abstract: The Indian banking industry is rapidly changing due to new technology, fierce competition and demanding customers. A business with high service quality will meet customer needs especially in banking sector. High service quality leads to better customer satisfaction. The objective of study is to identify quality of services offered by State Banks of India and HDFC banks to customers. In addition the study tries to uncover gaps and make suggestions for improvement doing comparative analysis of these two banks using five dimensions of Service quality, namely Reliability, Responsiveness, Empathy, Assurance, and Tangibles based on SERVQUAL technique (Parsuraman et al., 1988). The study covers both primary investigation and literature review. Data was collected from 87 customers of banks administering structured questionnaire using random sampling technique from Jorhat branch and analyzed using statistical techniques. Research has indicated about the gap between perceived and expected service of these two categories of banks branch. The study concludes that services quality delivery of SBI is low as compared to HDFC and

Reliability refers to the ability to provide the exact required service according to given specifications and conditions. Responsiveness is the inclination and willingness of the employees to serve customers quickly and properly. Assurance is the feelings of trust and confidence in dealing with the organization. Assurance reflects the workers' knowledge, experience and their ability to build self-confidence as well as confidence in the customers themselves. Empathy indicates about understanding the customers' personal needs, taking care of them individually and showing them all sorts of sympathy, affection and looking at them as close friends and distinguished clients. Following are the statements indicate about different service