1 A Stdy on Cstomer Service Qality of Banks in India Dr. Manasa Nagabhshanam Lead Researcher Analyz Research Soltions Pvt. Ltd. Bangalore
3 Table of Contents Chapter Introdction Role of Banking in Indian Economy Indian Banking Indstry & Service Qality Importance of Service Qality in Banks Measring Service Qality in Banking Sector Service Focs Areas of Banking Indstry 317 Chapter Service Qality Dimensions of Service Qality Service Qality: Conceptalization and Operationalization Literatre Review Understanding the Literatre Review 322 Chapter Research Methodology Objectives Hypotheses for the Stdy Sorces of Data Sampling Method Data Analysis Scope of the Stdy Limitations of the Stdy 326 Chapter Scheme 326 Chapter Respondents Profile Type of Bank Location of the Cstomers Gender of Cstomers Annal Income of Cstomers Occpation of Cstomers Cstomers Bank Types of Accont Dration of accont Smmary Profile of Respondents
4 312 TABLE OF CONTENTS Chapter Cstomer Service Qality Compared with Respondents Profile Cstomer Service Qality Rating distribted across age grops Cstomer Service Qality Rating distribted across Gender Cstomer Service Qality Rating distribted across occpational grops Cstomer Service Qality Rating distribted across Income grops Cstomer Service Qality Rating distribted across Cities Cstomer Service Qality Rating distribted across Banks Cstomer Service Qality Rating based on type of bank in which accont is held Cstomer Service Qality Rating distribted across dration for which accont is held Cstomer Service Qality Rating distribted across type of accont held by cstomers Hypothesis to Test Independence of Service Qality Rating from Categorical Variables 335 Chapter Cstomer Perception of Qality of Bank Services Analysis of Perception Cstomer Service Qality Reliability Empathy Responsiveness Assrance Tangibility 342 Chapter Analysis of Service-Qality Gaps Servqal Gaps Servqal Gaps for each Dimension A Comparison of Servqal Gaps in For Cities in India Comparison of Servqal Gaps based on different Types of Banks Servqal Gaps in Varios Banks Compared 352 Chapter Bankers Perception of Cstomer Service Qality Rendering services as promised to its cstomers Providing reliable services Employees willingness to help cstomers Employees being caring and providing individal attention to the cstomers Employees knowledge abot bank operations Physical facilities of the bank and ambience Dress and appearance of bank employees 358
5 TABLE OF CONTENTS 313 Chapter Findings, Sggestions and Conclsion Findings on Service qality Rating compared with Respondents profile Findings from cstomer perception of varios dimensions Findings from Banker s Perception on Service Qality Sggestions Conclsion 363 Bibliography
7 CHAPTER-1 Introdction Bank plays an important role in the economic development of a contry. It is a financial instittion that accepts deposits and channels those deposits into lending activities either directly or throgh capital markets. A bank connects cstomers which have capital deficits to those cstomers with capital srplses. The banking indstry in India is facing certain challenges i.e. challenges of qality service, cstomer satisfaction, cstomer retention, cstomer loyalty, Qality service plays a major role in achieving cstomer satisfaction, and creating brand loyalty in banking sector. 1.1 Role of Banking in Indian Economy The Government of India, after independence had to focs on many areas among which one of the important tasks was economic development of the contry. In this context, the Indstrial policy resoltion in 1948 focsed on mixed economy, which played an active role in development of different sectors inclding banking and finance. A major step in this direction was the nationalisation of banks in 1948.The Banking Reglation Act was enacted which empowered the Reserve Bank of India (RBI) to reglate, control and inspect the banks in India. In other words all the banks in India fell nder the jrisdiction of Reserve Bank of India nder the Banking Reglation Act. The Government of India nationalised private banks in 1969 and later in 1980 in order to have better control over this sector. Government of India controls arond 91% of the banking bsiness in India. In early 1990s, the then prime minister of India P.V NarsimhaRao liberalized the sector by giving licenses to a small nmber of private banks, which came to be known as new generation tech-savvy banks. Among these banks were, Global Trst Bank (Now acqired by Oriental Bank of Commerce), UTI Bank (now re-named as Axis Bank), ICICI Bank and HDFC Bank. The banking sector in India constittes government banks, private banks and foreign banks. In the era of Liberalization, Privatization, and Globalization (LPG) banks play a dynamic role in contribting to the economic development of the contry. Some of the contribtions of banks to the economy of the contry are discssed below: Facilitator for Monetary Policy: The fiscal and monetary policy of a contry has greater impact on its economic development, and a well-developed banking system is pre-reqisite for sccessfl implementation of the monetary policy. Promoting Capital Formation: Banks are the reservoirs of capital providing loans to the individals and bsiness. Pooling of financial resorces and formation of capital is encoraged by banks by way of deposits and other activities. This capital is tilized by entrepreners and contribtes for the economic development of the contry. Encorages Innovation: Entreprenership and Innovation go hand-in-hand. Banks encorage entreprenership by attractive credit, which empowers them towards innovation. Monetization: The coining of crrency or printing of banknotes is done by the central bank. In other words; banks are the manfactrers of money which is important for the economy. Inflence Economic Activity: Banks inflence the rate of interest in the money market throgh its spply of fnds. It can inflence a monetary policy with lowinterest-rates which will tend to stimlate economic activity. Banking sector has become so important that the absence of banking indstry leads to stagnation in economic development of the contry, the savings wold sit idle in or homes, the entrepreners wold not be in a position to raise money, innovation of new prodcts or bsiness models will get affected. Ordinary people having dreams of new car or hose will not be able to prchase-which will affect atomobile and real estate bsiness. 1.2 Indian Banking Indstry & Service Qality The banking indstry is facing rapid changes in the market, sch as: new technologies, economic ncertainties, fierce competition, more demanding 315
8 316 CH. 1 : INTRODUCTION cstomers and the changing climate which lead to an nprecedented set of challenges. Banking is a cstomer oriented service indstry which has witnessed a radical shift in the market power. The effectiveness and efficiency became the bzzword of the sccess of banking operations and its proper fnctioning particlarly with respect to providing services to the cstomers. Service is an invisible thing which is indispensable from the person who extends it. An efficient or effective service is one which is extended appropriately by identifying and nderstanding the needs of the individal cstomer from time to time. Cstomer service is a dynamic interactive process which needs continos improvement. With the advancement of information technology and commnication system, the whole world has been redced to a global village. The cstomers at the present jnctre are well exposed to nstoppable innovations in commnication technology. He/she is aware of the kind of service level available arond the world and ths expects the best from his/her bank. Cstomer service is not only a critical fnction bt plays a vital role for the bsiness. It is the next most important bsiness strategy. The improved cstomer service will definitely increase profitability. A bank can be said as cstomer oriented if its varios organizational activities like organizational restrctring, staffing, and coordination are geared p to flfil the needs of cstomers. Dring the past two decades or so, reglatory, strctral and technological factors have significantly changed the banking environment in India. In a milie which becomes increasingly competitive, service qality as a critical measre of organizational performance contines to compel the attention of banking instittions. The interest is largely driven by the realization that higher service qality reslts in cstomers satisfaction and loyalty, greater willingness to recommend to someone else, redction in complaints and improved cstomer retention rates In the era of globalization and liberalization, economic reform has become an imperative to remain in the main stream of global economy. In this regard, banking sector being the backbone of the economy cannot maintain stats qo. It is legitimately feared that the privileged stats, which banks enjoyed for the last three decades, has already been changed with the entry of new players in the form of private and foreign banks. Under these circmstances, the banks will have to face pronged challenges to retain the existing cstomers and to create new cstomers. However, sccess rate depends on the innovative strategies adopted by the banks inclding better cstomer services and adeqate flfilment of cstomer expectations. Ths, cstomer satisfaction is qite a complex isse and there is a lot of debate and confsion abot what exactly is reqired and how to go abot it. 1.3 Importance of Service Qality in Banks Increased competition, highly edcated consmers, and increase in standard of living are forcing many bsinesses to review their cstomer service strategy. Many bsiness firms are channelling more efforts to retain existing cstomers rather than to acqire new ones since the cost of acqiring new cstomer is greater than cost of retaining existing cstomers. There is enogh evidence that demonstrates the strategic benefits of qality in contribting to market share and retrn on investment. Maximizing cstomer satisfaction throgh qality cstomer service has been described as the ltimate weapon by Davidow and Vital (1989). According to them, in all indstries, when competitors are roghly matched, those with stress on cstomer s service will win. In view of the above mentioned facts, an analysis of service qality perceptions from cstomer s point of view may be sond and interesting at this jnctre. Sch an analysis will provide banks, a qantitative estimate of their services being perceived with intricate details sch as whether banks are meeting the expectations of the cstomers or not. 1.4 Measring Service Qality in Banking Sector Cstomer is vital for the development of trade, indstry and service sector particlarly in financial services. Therefore, the significance of cstomer service in the banking sector came to force to compete in a market driven environment. Measring service qality in the service sector particlarly in the banking sector is more difficlt than measring the qality of manfactred goods. The service sector as a whole is very heterogeneos and what is heterogeneos may hold tre for one service and may not hold for another service sector. Each bank is having a variety of services. De to this differentiation, services in this indstry cold not be standardized, moreover these services are intangible in natre which cold not be compared or seen.
9 CH. 1 : INTRODUCTION 317 The concept of cstomer satisfaction and service qality is interrelated with each other. Moreover satisfaction of cstomer depends pon service qality and service qality is increasingly offered as a strategy by marketers to position themselves more effectively in the market place. De to the advent of e-banking, qality of service has been improved a lot as compared to traditional banking services. Internet banking, Mobile banking, atomated teller machine, electronic fnd transfer has totally changed the way of providing services by the banks. 1.5 Service Focs Areas of Banking Indstry There are a variety of services like retail banking, corporate banking, investment banking, commercial banking, personnel banking, wholesale banking, internet banking etc. Electronic Banking and Service Qality As cstomers become more sophisticated, therefore, it becomes essential to consider the se of technology to respond to their continos needs. Banking is an indstry highly involved with the cstomers. Cstomers in developing economies seems to keep the technological factors of services as the yardstick in differentiating good & bad services and the hman factor the employees seem to play a lesser role in discriminating the qality of service for banks. The variations in services offered by the banks develop excellence for service qality. Banking is no longer regarded as bsiness dealing with money transaction alone, bt it also seem as a bsiness related to information on financial transaction. Cstomers at the corporate level or at retail level have always been important for the banks. As electronic banking is becoming more prevalent, level of cstomer satisfaction is also changing the scenario of technological environment. Informational technology in the form of e-banking plays a significant role in providing better services at lower cost. Several innovative IT based services sch as Atomated Teller Machine (ATM), Internet banking, Smart Cards, Credit Cards, Mobile banking, Phone banking, Anywhere-Anytime banking have provided nmber of convenient services to the cstomer. So as the service qality improves, the probability of cstomer satisfaction increases. Increase satisfaction in trn increases the mtal nderstanding, cstomer retention and a bond of trst between cstomers and banks. The banks which are providing these services on a wider scale to cstomers are more repted in the eyes of cstomers. Bt at the same time technology based prodct is different in pblic and private sector banks. Bank atomation and electronic banking is fast in private sector comparative to pblic sector. E-banking is an improvement over traditional banking system becase it has redced the cost of transaction processing, improved the payment efficiency, financial services and also has improved the banker-cstomer relationship. The relationship between e-banking and service qality can be stdied with the level of satisfaction. E-banking plays a pivotal role in giving satisfaction to the cstomers becase e-banking fills the gap between the expected and perceived service qality. So in order to fill this gap, banks shold find ways of making electronic services more accessible and by allowing the cstomer to verify the accracy of the e-banking transactions. There are nmber of reasons de to which cstomer satisfaction on accont of e-banking has improved. The reasons are as follows; 1. Cstomer can withdraw fnds, transfer fnds anytime, anywhere they want. 2. Accessibility has been extended throgh technological development as it allows cstomers to do bsiness from their home and office. 3. It makes the banking activities and transaction very simpler to nderstand 4. There is no reqirement of direct control with bank, as services can be operated wherever cstomer wants. 5. It has redced the waiting time of the cstomer; 6. Availability of employees at all times is not reqired as these services are provided 24 hors a day, seven days a week. 7. Internet based services has enabled the corporate and retail cstomers to transact from home, office and travelling. 8. Online fnd transfer has enabled the cstomer to transfer fnds from one bank to another or within the same bank at same time. 9. Commnication, interaction between the bank and cstomer has been improved de to e-banking.
10 CHAPTER-2 Service Qality Service Qality is a bsiness administration term sed to describe achievement in service. It reflects both objective and sbjective aspects of service. The accrate measrement of an objective aspect of cstomer service reqires the se of careflly predefined criteria. The measrement of sbjective aspects of cstomer service depends on the conformity of the expected benefit with the perceived reslt. This in trn depends pon the cstomer s imagination of the service they might receive and the service provider s talent to present this imagined service. 2.1 Dimensions of Service Qality A cstomer will have an expectation of service determined by factors sch as recommendations, personal needs and past experiences. The expectation of service and the perceived service reslt may not be eqal, ths leaving a gap. Ten determinants which may inflence the appearance of a gap were described by Parasraman, Zeithaml and Berry: Competence is the possession of the reqired skills and knowledge to perform the service. Cortesy refers to factors sch as politeness, respect, consideration and friendliness of the contact personnel; consideration for the cstomer s property and a clean and neat appearance of contact personnel. Credibility refers to factors sch as trstworthiness, believability and honesty. It involves having the cstomer s best interest at heart. It may be inflenced by company name, company reptation and the personal characteristics of the contact personnel. Secrity represents the cstomer s freedom from danger, risk or dobt inclding physical safety, financial secrity and confidentiality. Access refers to approachability and ease of contact. Commnication mean both informing cstomers in a langage they are able to nderstand and also listening to cstomers. A company may need to adjst its langage for the varying needs of its cstomers. Information might inclde for example, explanation of the service and its cost, the relationship between services and costs and assrances as to the way problems are effectively managed. Knowing the cstomer means making an effort to nderstand the cstomer s individal needs, providing individal attention, recognizing the cstomer when they arrive and soon. Tangibles are the physical evidence of the service, for instance, the appearance of the physical facilities, tools and eqipment sed to provide the service; the appearance of personnel and commnication materials and the presence of other cstomers in the service facility. Reliability is the ability to perform the promised service in a dependable and accrate manner. Responsiveness refers to the willingness of employees to help cstomers and to provide prompt timely service. 2.2 Service Qality: Conceptalization and Operationalization Qality is a concept which reqires a concern both in prodcts as well as in services. Experts have defined it as, fitness for se, conformance to reqirements, freedom from variation etc. To market a prodct, qality plays a pivotal role to sell a prodct. In fact, qality is considered as the most important factor that inflence on the bying behavior of the cstomer. In tangible goods like prodcts, qality can be measred by its drability and nmber of defects, sage of prodct, packaging, handling etc. However measring the qality in intangible is a different one. As services are intangible so they are very difficlt to measre. Services have a lot of intangible dimensions like commnication, credibility, secrity, competence, reliability, responsiveness which are qalitative by natre and their vale is sbjective. Service qality is an abstract and elsive constrct becase of 4 niqe featres of services viz,: 1. Intangibility (Bateson, 1977) 2. Heterogeneity (Booms and Bitner, 1990) 318
11 CH. 2 : SERVICE QUALITY Inseparability (Carman &langeard, 1980) 4. Perishability (Stanton, J. William 2004) Services are those economic activities that typically prodce an intangible prodct sch as edcation, entertainment, food & lodging, transportation, insrance, trade, government, finance, real estate, medical, repair & maintenance etc. Intensified competition and dereglation has led many services and retail bsinesses to seek profitable ways to differentiate them. One strategy that has been related to sccess in these bsinesses is the delivery of high service qality. So service qality has become a significant research topic in past decade de to high revenes, increased cross sell ratios, higher cstomer retention, prchasing behaviors and expanded market share. An analysis of service qality literatre sggests for nderlying themes: (a) It is more difficlt to evalate than qality of tangible goods. (b) Evalation of qality is not made solely on the otcome service; they also involve the evalation of the process of service delivery (Parasraman, Zeithamal& Berry, 1985). (c) Service cannot be separated from the creator of service. These are created, consmed and dispensed at the same time. (d) Althogh the services are intangible bt throgh visalization, association, physical representation and docmentation; intangibility of the services can be improved. 2.3 Literatre Review 1. Impact of Service Qality in Commercial Banks on the Cstomers Satisfaction: An Empirical Stdy, October 2011.By: Dr. S. Fatima Holy Ghost; Dr. M. Edwin Gnanadhas Service qality is important mainly in the service bsiness enterprises. Growth and development of the enterprise majorly depends on the service qality. As service qality is the only way to satisfy majority cstomers, enterprises concentrate more on the service qality today. Qality in service is also interrelated to other behavioral otcomes of the cstomers. The stdy nderstands the varios cstomer perceptions abot the service qality factors like Assrance, Empathy, Responsiveness, Reliability and Tangibility in the banking indstry and the satisfaction level towards the banks. It also analyses the impact of these service qality factors on the satisfaction level based on the demographic differences. The stdy collects the perceptions abot the varios service qality factors throgh prposive sampling method and analyses the impact of the service qality factors. The data were collected on the basis of the varios demographics like, rral rban area, edcation standards, income level, occpation difference, age grops etc. And finally, stdy concldes saying abot the existence of a close bond between the service qality factors and the cstomer satisfaction level. And also it is fond that the impact of the service qality factors on cstomer satisfaction was varying with the demography of the cstomers. 2. Cstomer perception on Service Qality in Banking sector: with Special Reference to Indian Private Banks in Moradabad Region, Febrary 2012.By: Vibhor Jain, Dr Sonia Gpta, Smrita Jain This stdy was condcted to nderstand the perception of service qality in the banking sector and also to evalate how it helps in enhancing the reptation and attract cstomer loyalty. With the increased competition among the private sector banks, this stdy wold help in defining a strategy to achieve the competitive edge and also satisfied cstomers. And hence service qality has been sed to position the banks in the togh market. The stdy was administered throgh the private banks like ICICI, HDFC, KOTAK& INDUSIND BANKS. The stdy has taken the SERVQUAL tool for measrement of the service qality offered by the private players in the banking indstry. The main assmption is Service qality is mlti dimensional concept and these dimensions help in measring the service qality. The responses were collected based on the five dimensions namely, assrance, reliability, responsiveness, tangibility and empathy. The stdy identifies that Reliability and Responsiveness are the most relevant factors for the service qality perception and they have compared the individal scores with the average mean vale scored by the private banks nder the stdy. The stdy fond that among the for banks nder the stdy, HDFC bank has the highest qality perception in terms of the varios dimensions, thogh there is only one branch of this bank located in Moradabad. It is followed by ICICI, KOTAK & INDUSIND. The stdy concldes with sggestions for the private banks to be very competitive in the indstry.
12 320 CH. 2 : SERVICE QUALITY 3. Service Qality Delivery and Its Impact on Cstomer Satisfaction in the Banking Sector In Malaysia, October 2010.By: Jayaraman Mnsamy, Shankar Chelliah and HorWaiMn The stdy focses on the measrement of the cstomer satisfaction throgh delivery of service qality in banking sector in Malaysia. And it highlights the parameters in banking indstry for improvement in delivery of service qality. And also gives a snapshot of some appropriate methods that have been sed for the measrement of cstomer satisfaction. The methodology followed was data collection from random respondents of the general poplation. Considering the fact that different grop of people from different backgronds have different expectation level, a large respondent poplation was targeted for the research. The qestionnaire was collected from 117 respondents from different backgronds. The stdy fond that assrance has a positive relationship with cstomer satisfaction, bt withot significant effect. Reliability is the timeliness and accracy in service provided, and says reliability does not have mch impact on cstomer satisfaction. Tangibles inclde the appearance of the company, and the stdy fond that it has high positive correlation with cstomer satisfaction. The stdy says that there is no mch relation between empathy and satisfaction. Responsiveness is the timely response, which the cstomers get from their service providers. The stdy sggests that responsiveness factor is highly related to cstomer satisfaction. 4. Effect of Service Qality On cstomer Satisfaction with Bank Nagari Main Branch Padang, November 2011.By: Heryanto, Lectrer of the University of Ptra Indonesia, West Smatra The objective of the stdy was to nderstand the inflence of service qality on cstomer satisfaction on the main branch of Bank Nagari. The stdy focses on how the inflence of service qality affects the satisfaction of the banking cstomers of the Bank Nagari, Padang. The sample size taken for the stdy is 100 savings cstomers of the bank. Data was collected from the poplation by accidental random sampling techniqe. A simple Regression model is fitted to the data. The paper defines the varios dimensions of the service qality like Responsiveness, Reliability, Tangibility, Assrance and Empathy. And the Cstomer satisfaction factors like Speed, Accracy, Safe, Save, and Comfort. The characteristics of the respondents were considered based on their demographic profiles like sex, age, income, occpation etc. And the profile perceptions abot the service qality and the cstomer satisfaction were analyzed from the indicators of the same. Service qality has 17 indicators and Cstomer satisfaction has 12 indicators. The varios indicators of both the service qality and cstomer satisfaction are measred sing the scores from the qestionnaire given to the sample poplation on a 5- Level Likert Scale. And then the regression model was estimated sing SPSS tool. From the analysis, the stdy concldes that there is a significant relation between the service qality and the cstomer satisfaction. And service qality is very important and consists of actions like qick response, commitment, staff availability, right service fat right time, complaint soltion, competency and capability of the staff in the bank. 5. Measring Service Qality in Retail Banking Sector in Context of Gjarat, Janary 2012.By: Parmita Mehta, Marwadi Edcation Fondation s Grop of Instittions, Rajkot The main objective of the stdy is the measrement of the service qality in the banking sector. Segmentation of the cstomers based on their perception abot the high and low service qality factors and identifying the relation between both, find the importance of varios dimensions of service qality and its inflence on cstomer satisfaction. For the stdy, 1 pblic sector bank, 3 private banks & 2 co-operative banks were chosen. To nderstand the relationship between the two segments of the cstomers, chi sqare was sed. The stdy also defines the varios dimensions of service qality and ses regression analysis to nderstand the relative importance between the dimensions. The sample poplation was conted to be total 293 respondents from 6 banks sing prposive sampling and personal interview was condcted. To perform segmentation analysis, the cstomers were classified based on their service qality scores. The report fond that the type of accont held by the cstomer has more inflence on the service qality segments. Hence the stdy sggests that the type of
13 CH. 2 : SERVICE QUALITY 321 accont is a significant demographic variable in measring the service qality perception. Mltiple regression analysis was carried ot to analyze the relative importance of the varios dimensions inflencing the 1. Overall service qality 2. Overall cstomer satisfaction 3. Loyalty intention 4. Likelihood of recommendation The stdy concldes saying that reliability dimension has the highest shortfall and assrance shows the lowest, when compared with cstomer expectations. And also sggests that type of accont is a significant variable in profiling the two segments. 6. How do service qality perceptions contribte in satisfying Banking Cstomers?, December By: Prof. Dr. Mhammad Ehsan Malik, Dean IBA, University of Pnjab, Lahore (Pakistan). Basharat Naeem, Lectrer at IBA, University of Pnjab, Lahore (Pakistan). Zona Arif, Stdent of MBA, University of Pnjab, Lahore (Pakistan). The title of the stdy itself defines the objective, service qality perception s contribtion in cstomer satisfaction. The research hypothesis is that clients sing retail banking services with favorable perceptions of service qality dimensions will experience higher satisfaction. Data collection was done from the banking cstomers from government, international and privately held banks in Lahore, Pakistan. Service qality was assessed in both ways based on Wang et al s and Parasraman et al. The overall satisfaction was measred sing a 1-5 Likert Scale. Mltiple regression analysis was carried ot to assess the srvey responses. Descriptive statistics like mean mediation was calclated for all dependent and independent variables. From the findings, the stdy concldes that not all SERVQUAL dimensions have the role in boosting the satisfaction level of the banking cstomers in context with Pakistan. Also says assrance has higher contribtion than reliability. The stdy has more implications on the banking practioners in Pakistan. The stdy findings also spport the positive relationship of service qality with satisfaction as fond by Dagger et al. The stdy concldes that the relationship between service qality and satisfaction varies becase of the variability of the service qality dimensions. 7. Cstomer s perception of service qality of State Bank of India A Factor Analysis By: Dr. Mrs. G. Santhiyavalli, Department of Commerce, Avinashilingam Deemed University of Women, Coimbatore, India, September 2011 The objective of the stdy is to evalate the service qality of the SBI in Coimbatore area. The stdy wold also help in nderstanding of the cstomer perception of service qality in selected branches of SBI and also the major factors responsible for the cstomer satisfaction. The stdy was performed for dration of 6 months covering five branches at R.S Pram, Saibaba Colony, Singanallr, Race Corse Road and Ganapathy road. SERVQUAL techniqe was sed in the stdy sing 22 variables nder the dimensions, tangibility, reliability, responsiveness, assrance & empathy. Gap Analysis was sed to find the shortfalls in the dimensions of service qality of the banking service. The variables for data collection, sed in the stdy are the demographic variables like age, gender, edcational qalification, marital stats occpation and annal income. Primary data was collected from the e-banking cstomers of the branch throgh a qestionnaire with 22 statements nder the five dimensions. Convenience sampling was sed to select the sample respondents. 250 responses were received and the responses were captred on a 7 Likert scale. Reslts of the stdy shows that most of the cstomers fall in the range of agree and partially agree for the services offered by SBI. As the gap scores were less for Assrance, the cstomers are satisfied with secrity aspects and Empathy has the highest gap score, which implies the dissatisfaction of the cstomers. Factor analysis condcted clearly indicates that the five dimensions Assrance, Empathy, Tangibility, Reliability and Responsiveness are the major factors inflencing the cstomer satisfaction. 8. The Key Determinants of Internet Banking service qality: A content Analysis, Jly 2011.By: Minjoon Jn, Associate Professor, New Mexico State University, USA.ShaohanCai, Doctoral Candidate, New Mexico State University, USA. The objective of the stdy is to nderstand the cstomer perceptions on the internet service qality, the varios dimensions associated with the satisfaction. The stdy