This study attempts to know the relationship between service quality and customer satisfaction through two public sector banks at Sikar district in Rajasthan. Data was collected from 150 customers. Three aspects of service quality—people, process through technology and physical evidence—are considered for the study. Findings indicate that service quality has a significant impact on customer satisfaction. People aspect of service quality is found more important than physical evidence and process through technology aspect of service quality.

Financial institutions have undergone intense competition and a change in customers’ expectations over the last few years (Cheng et al., 1996). Intense competition and endlessly evolving customer demands have led Indian banks to identify drivers of customer satisfaction and loyalty (Lenka et al., 2009). Customer satisfaction is the key for survival in the market. Cost of acquiring a new customer is much more than the cost of retaining the customer. Customers are given top priority, and according to their expectations, new products and services are being developed to satisfy them with special focus on service quality. New marketing concepts and strategies (Ennew et al., 1993), are paying greater attention to identifying customer needs and expectations (Morgan, 1989), and offering high service quality to customers (Lewis, 1993; and Thwaites and Vere, 1995). The interest is largely driven by the realization that high service quality results in customer satisfaction and loyalty with the product or service, greater willingness to recommend someone else, reduction in complaints and improved customer retention (Zeithaml et al., 1996).

This paper examines whether service quality influences customer satisfaction in the Indian commercial banks. The study is conducted in Sikar district in Rajasthan.

Marketing Management Journal, Impact, Service Quality, Satisfaction, Indian Banking Sector, Customer satisfaction, Service Quality, Electronic Fund Transfer, Automated Teller Machines.