Title: An investigative study of operational performance and service quality of Indian public sector banks

Authors: Sajeev Abraham George; Nilanjan Chattopadhyay

Addresses: SP Jain Institute of Management and Research, Andheri (West) Mumbai 400058, India. ' Institute of Management Technology, Raj Nagar, Ghaziabad 201001, India

Abstract: Since economic liberalisation in the early 1990s, the public sector banks in India have been facing stiff competition from the private Indian and foreign banks that have captured a large share of Indian financial market. However, the country's banking system is still dominated by the public sector banks and there is an emerging need for a comprehensive framework for measuring their operational efficiency and service quality. This paper attempts to measure the operational efficiency and service quality of these banks. For operational performance benchmarking data envelopment analysis (DEA) methodology has been used and SERVQUAL model has been applied to measure service quality. Further, the operational performance and service quality of these banks have been compared with two leading private sector banks to derive academic and managerial insights. Linkages between operational efficiency, service quality and profitability of these banks have also been investigated.

Keywords: benchmarking; Malmquist DEA; data envelopment analysis; service quality; operational performance; public sector banks; economic liberalisation; competition; private banks; foreign banks; financial markets; operational efficiency; SERVQUAL; reliability responsiveness competence access courtesy communication credibility security customers tangibility; academic insights; managerial insights; linkages; profitability; Punjab National Bank; Central Bank of India; HDFC Bank; Housing Development Finance Corporation; ICICI Bank; Industrial Credit and Investment Corporation; business performance; performance management; efficiency management; service sector organisations.

DOI: 10.1504/IJBPM.2012.047303

International Journal of Business Performance Management, 2012 Vol.13 No.3/4, pp.408 - 425

Received: 08 May 2021
Accepted: 12 May 2021

Published online: 11 Jun 2012 *

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