Service Quality of Banking Sector in India An-Overview

Abstract

The changing focus of service quality from a mere competing instrument to that basic core of service concept in meeting and exceeding customer expectation is an emerging important issue in service organization. The premises of 'Quality of service' as the competitive edge in gaining market leadership has been well recognized both in academic research and by leading service organization. It has become increasingly important for organizations to find ways, not only to reach the top, but to maintain that leadership in ever increasing competitive market place. In order to protect their long term interest, service organizations are seeking ways to forge and maintain service quality. The hanking industry, being very competitive, not only focuses on providing wide product lines to create competitive advantages, but also emphasizes the importance of its services, particularly in maintaining service quality. Commercial banks form the largest and the country's most important group of financial institutions. With stiffer competition from domestic and foreign banks, it is important for the commercial banks in India to improve the quality of their services. As globalization and liberalization of financial institutions accelerate, competition among banks in offering products and services becomes more intense. Customers in India have become more educated better informed, more internalized, and as Indian economy becomes more and more knowledge based, the demand for high quality services expands with increases in customers' buying power. This paper discusses an overview of Service Quality of banking sectors in India