Customer relationship management in banks: A comparative study of public and private sectors in Punjab

Traditionally, the field of banking was dominated by large public sector banks. After the liberalization policy of government of India, foreign and private banks were permitted to start a business. Now public sector banks are increasingly facing more competition, where as foreign and private sector banks are trying to win customer satisfaction and loyalty by providing them better quality services. The banking industry in Punjab is now running in a dynamic challenge concerning both customer base and performance. Today many banks are rushing to become more customer focused. A key component of many initiatives is the implementation of Customer Relationship Management (CRM) concept. The purpose of this study is to evaluate the CRM practices being adopted by banks in Punjab so as to analyze whether the banks are really implementing the whole concept of CRM. This paper also attempts to compare the CRM practices of public and private sector banks in Punjab.