Customer satisfaction towards financial service quality on Indian Banking Sector

Customer satisfaction is a key of profitability and it implies the retention of the customers for the long term which is better than attracting the new customer. Now a day's banks have realized that cost of attracting a new customer is much more than retaining existing customers. So banks are emphasizing more upon customer satisfaction. These days customers demand for top quality services and products served with minimum wait time. On seeing today's age of banking revolution, in terms of financial services provided by banks the current research paper attempts to make a comparative analysis of the level of customer satisfaction towards financial services. This paper attempts a comparison of financial services among two categories of banks-Public and Private sector banks (only domestic) in Ambala district during December 2011. Simple random sampling technique is adopted and 200 respondents, 50 customers from each Public Sector banks and 50 customers from each Private Sector Banks constitute the sample for the survey. The findings show that Private Sector banks (ICICI & HDFC banks) performed significantly by satisfying its customers with good services and they have been successful in retaining their customers by providing better facilities in terms of communication, employee's behavior and infrastructure than Public sector Banks. On the other hand respondents of Private Banks were not satisfied with high charges and accessibility. The paper reveals that new financial products and services have to be continuously introduced in order to stay competent and that Public sector banks have to build long term strategic relationships with its customers. Public sector banks have to revive more in order to cope up with competitors.