Determinants of Customer Satisfaction in Nationalised and Private Banking Sectors: Evidence from Gujarat
The banking sector in India has undergone significant transformation due to liberalization, technological advancement, and increasing competition between nationalised and private banks. In Gujarat, where economic growth and financial awareness are high, understanding customer satisfaction has become essential for improving service quality and maintaining competitiveness. This study examines the determinants of customer satisfaction in nationalised and private banking sectors with specific reference to Gujarat. Drawing on existing literature and secondary data, the research identifies key factors influencing satisfaction, including service quality, employee behavior and competence, technology adoption, accessibility, transparency, trust, and pricing. Conceptual models such as SERVQUAL and Expectation–Confirmation Theory provide the theoretical basis for analyzing customer perceptions and expectations. The study also highlights differences between bank types, noting that nationalised banks are valued for trust, reliability, and extensive reach, whereas private banks excel in responsiveness, efficiency, personalization, and digital innovation. Rising customer complaints, particularly related to credit services, indicate emerging challenges in banking operations. At the same time, opportunities such as digital banking, mobile applications, and customer relationship management systems offer pathways for improving customer experience. The findings suggest that a balanced strategy combining technological modernization, service quality enhancement, and customer-centric practices is necessary to improve satisfaction levels across both sectors. The study provides insights for banking institutions and policymakers to strengthen customer relationships and enhance the overall effectiveness of the banking system in Gujarat.