Liberalisation of the Indian economy in 1991 set off a chain of paradigmatic changes in most of the sectors. One among the sectors that came in for prompt structural changes was the banking sector. The strength to banking sector was added after the foundation of the Reserve Bank of India in 1935 as it was authorized to supervise all the banks in India. In today's dynamic business environment Banking firms like other service providing firms are concentrating on service quality to satisfy customers with their services. The public sector banks has now realised the importance of service and are concentrating on quality service in order to retain existing customers. The researcher has felt a service gap among the newly formed banks in terms of service quality. The main objective of this study is to compare the service quality of IndusInd Bank and the Yes bank in Vijayawada region in Andhra Pradesh, India. SERVQUAL model is used to prepare a questionnaire and t-test is used to compare the service quality of banks with service quality dimensions tangibility, reliability, assurance, responsibility and empathy. The results of the study are Yes bank is best in providing parking facility, competitive interest rates, error free processing, understanding needs of customers, right service for the first time, informing about service performance, paying personal attention. IndusInd bank is best in providing good seating arrangement and good sign boards and symbols. The mean values of items shown that, Yes bank is best in service quality dimensions Empathy, Reliability, Responsiveness and Assurance. IndusInd bank is best in service quality dimension Tangibility. But by statistical analysis, it is found that Yes bank is best in terms of Assurance, Reliability and Responsiveness. There is no difference in service quality between the banks in terms of Empathy and Tangibility.
Service Quality, Service Quality Dimensions, SERVQUAL Model
