COMPARABLE STUDY ON CUSTOMER CUSTOMER SATISFACTION FROM PRIVATE AND GOVERNMENT BANKS

Abstract

This comparative study of customer satisfaction in private and public (public/nationalized) banks aims to assess, contrast, and analyze the key factors and dimensions influencing customer experience in both sectors. The study uses a structured questionnaire based on established service quality frameworks (such as SERVQUAL) and collects primary data from a representative sample of bank customers. Statistical tools, including descriptive analysis, paired sample t-tests, and regression analysis, were used to assess differences in customer expectations, perceptions, and satisfaction levels. The results reveal that private banks generally outperform public banks in areas such as service quality, technology adoption, and responsiveness, resulting in higher customer satisfaction in these areas. Private banks particularly stand out for their modern infrastructure, speed of service, and innovative digital offerings, which perfectly meet growing customer expectations. Conversely, public banks tend to perform better in areas related to trust, branch proximity, and perceived reliability, although they often lag behind in physical assets and staff responsiveness. The analysis also highlights the existence of gaps between customer expectations and actual service delivery in both sectors, with public banks exhibiting a wider gap in service quality. The implications of these findings are important for banking executives and policymakers. Private banks must focus on maintaining their technological edge while addressing issues such as additional fees and personalized attention. Public banks, for their part, must invest in staff training, digital infrastructure, and customer-centric policies to close the service quality gap and improve satisfaction. The study concludes that while both sectors have generally satisfied their customers, targeted improvements are needed to address sector-specific weaknesses and foster greater customer loyalty and retention. This research contributes to the literature by providing an in-depth, data-driven comparative analysis of customer satisfaction in private and public banks, offering practical insights for service improvement and strategic planning in the banking sector. In conclusion, the study demonstrates that while both private and public banks have their own strengths and areas for improvement, customer satisfaction remains a dynamic and multidimensional concept that requires continuous attention and adaptation. By providing a comparative, data-driven perspective, this research offers valuable insights for improving service quality, building customer loyalty, and informing strategic decision-making in the Indian banking sector.