In
banking, the quality of customer service holds primary significance,
particularly in the context of sustained business growth.
Unlike other industries engaged in the production of tangible
goods, banks are unique in the sense that they produce and
deliver the service at the delivery points—the branches. This has an overwhelming impact on the customers' psyche and makes them supersensitive towards the quality of service. The relationship between a bank and its customers is not a one-time affair, but a relatively permanent and enduring one, which requires to be nurtured with good quality of service. In such a situation, any bank not having a mind towards bettering the quality of customer service is almost certain to lose its business. In the present study, an attempt is made to study the quality of service provided by the Public Sector Banks (PSBs) to Small-Scale Industries (SSIs). The level of customer service and satisfaction is determined by the branch's location and design, variety of services, systems and procedures, delegation and decentralization, mechanization and computerization, complaint redressal; and skills, attitudes and responses of the staff.
With globalization, the banking sector has become more competitive and there is no more a seller's market. Given the prevailing trends of buyer's market, the market players cannot afford to take the customers for granted. When the competition has resulted in the thinning of margins, enhancement of profits can be possible only through multiplying the volume. And, the volumes, in turn, may be increased only if the banks are able to attract and retain the customers. The quantum of customer assets in banks' balance sheets is declining. A large number of customers are shying away from the banks; therefore, there is an urgent need to bring the customers back to the banking fold. Advancement of IT has provided for major supports to financial systems. Communication technology has been facilitating the gathering and transferring of information across the globe. The awareness of the customers about the market place is also increasing. These trends compel one to believe that the banks will have to concentrate on customer service not only for expansion and maximization of profits but also for survival. With a delayed entry into the process of globalization compared to peers, Indian banking is at the crossroads. It has to service the age-old traditional customers and also develop products to meet the emerging demands of the present and prospective new customers. During the post-nationalization period, class banking was converted into mass banking. With the new thrust on profit-maximization, the shift is in favor of class banking.
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