ABSTRACT

         Bank plays an important role in the economic development of a country. It is financial institution that accepts deposits and channels those deposits into lending activities either directly or through capital markets. A bank connects customers which have capital deficits to those customers with capital surpluses. This industry is facing certain challenges i.e. service quality, customer satisfaction, customer retention and customer reliability. A customer service has become therefore very important and significant especially in the financial business sector. As Indian public and private banks continue to provide an increasing number of financial services and products, they confront the challenge of coordinating these different frameworks into a coherent, efficient infrastructure, while conveying the maximum customer services and accommodating while not revealing their customers to the bank’s internal system integration issues. This paper will explain the service quality challenges of banks to retain its customers.

Key words:  Customer service, service quality, public and private banks, customer loyalty, customer satisfaction and financial institution.