A STUDY ON CUSTOMER PREFERENCES FOR BANKING SERVICES:
COMPARATIVE ANALYSIS OF PUBLIC VS PRIVATE SECTOR BANKS”
Introduction
The Indian banking industry has undergone significant transformation over the
past few decades, evolving from a traditional, branch-based model to a more customer-
centric and technology-driven approach. With liberalization and reforms in the financial
sector, the entry and growth of private sector banks have intensified competition,
compelling both public and private banks to enhance their service offerings and
customer experience.
Today’s banking customers are more informed, empowered, and selective. Their
preferences are influenced by various factors such as service quality, convenience,
digital accessibility, interest rates, customer support, and overall banking experience. As
a result, understanding customer preferences has become crucial for banks aiming to
retain existing customers and attract new ones in a highly competitive market.
Public sector banks (PSBs), known for their widespread rural reach and
government backing, often appeal to customers who value trust, security, and long-term
stability. On the other hand, private sector banks are perceived to offer better customer
service, faster processes, and advanced digital platforms, catering more to tech-savvy
and urban customers.
This study aims to analyze and compare customer preferences between public
and private sector banks, with a focus on key service areas such as responsiveness,
product offerings, digital banking, grievance handling, and overall satisfaction. The
insights derived from this study will help banks better align their strategies with
customer expectations and enhance their competitive edge.
List of Public Sector Banks in India
1. State Bank of India (SBI)
2. Punjab National Bank (PNB)
3. Bank of Baroda (BoB)
4. Canara Bank
5. Union Bank of India
6. Bank of India (BOI)
7. Indian Bank
8. UCO Bank
9. Bank of Maharashtra (BoM)
10. Punjab & Sind Bank
11. Central Bank of India
🔸 Notes:
These banks are majority-owned by the Government of India.
List of Private Sector Banks in India
1. HDFC Bank
2. ICICI Bank
3. Axis Bank
4. Kotak Mahindra Bank
5. IndusInd Bank
6. Yes Bank
7. Federal Bank
8. IDFC First Bank
9. RBL Bank (Ratnakar Bank)
10. South Indian Bank
11. Bandhan Bank
12. City Union Bank
13. IDBI Bank (Though majority government-owned, it operates largely as a private
bank since it’s listed; often considered a private sector bank)
