Page 33 - Banking Finance July 2019

ARTICLE

Banking institutions play very vital role of providing financial Literature Review
security as well as the saving functions to the individuals at
Bahia and Nantel (2000) - The paper suggested an
large. These financial institutions are essential for keeping
alternative scale for measuring service quality in retail
control over the supply of money as well as supply of credit.
banking. The study developed a scale called as Banking
A developed banking system in an economy gives confidence
Service Quality Scale which contained factors like
to the individuals in the overall financial system of the
effectiveness and assurance, access, price, tangibles, service
country. The reform in the banking sector is very much
portfolio and reliability. This model was found to be more
needed in order to make the financial system more vibrant.
reliable than SERVQUAL
For example commercial banks are regulated by
government entities like Reserve Bank of India which has a
Jamal., Naser (2002) - The study examined key drivers of
monopoly on the business of issuing bank notes factually the
customer satisfaction using 167 customers and it was found
central Bank is the regulator of the banking industry of our
that core and relational performances had impact on
country.
customer satisfaction and there was negative relationship
between customer expertise and customer satisfaction.
In order to meet the global challenges by the banking sector
reforms have been initiated in the globalised era after
Sureshchandar et al (2002) - The study examined
implementation of new economic policy in our country. Many
relationship between service quality and customer
policies have been decided by the regulators in the financial
satisfaction in Indian banking sector. These were found to
sector. In banking sector reforms have been executed in two
be independent but closely related. Both constructs vary
phases in order to enhance the operational efficiency and
significantly in core services, human element, and
service quality by the different financial institutions. By
systematization of service delivery, tangibles and social
experiencing these reforms, the financial institutions
responsibility.
become ready to offer the world class services and also to
meet the global challenges in the current globalised era.
Navdeep Aggarwal and Mohit Gupta (2003) - This study
basically finds out the primary dimensions and sub
The reforms in this sector have been implemented in two
dimensions of service quality. Informal structured interviews
different phases. Under the first phase reform focus has
are conducted with branch managers and academicians to
been made to improve the policy framework, financial
formulate a banking service quality model. The study found
position and institutional structure. The second phase of
out that service time and personal interactions are very
reforms in this sector concentrates on strengthening the
important along with ambience for service quality.
overall banking system by improving the infrastructure,
technological support and human resource development. A
Arora S (2005) - This study analyzed factors influencing
special emphasis has been made on recovery management
customer satisfaction in public sector, private sector and
of Non Performing Asset (NPA).
foreign banks in northern India. 300 customers were given
questionnaires which reveled that significant differences
exist in customer satisfaction level of customers in each
group of banks regarding routine operation and situational
and interactive factors. Foreign banks were found to be the
leaders in mechanization and automation.
Debashis and Mishra (2005) - The study analyzed and
measured customer satisfaction in branch services provided
by nationalized banks in northern India. 1200 customers
were given questionnaires and it was found out that
computerization, accuracy in transactions, attitude of staff
and availability of staff influenced customer satisfaction.
Least important factor was promotion of the products and
various schemes.

BANKING FINANCE | JULY | 2019 | 33