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In the present competitive scenario in the Indian banking industry, service quality has become one of the most important facets of interest to academic researchers. The purpose of this paper is to determine the dimensions of perceived service quality and investigate their impact on customer satisfaction in the Indian banking context, with special reference to selected public sector banks in India.

On the basis of the empirical study, the authors validate a measurement model using structural equation modeling for investigating the impact of perceived service quality dimensions on customer satisfaction. The study sample consists of 480 respondents in the National Capital Region (NCR) of India; the data were collected through a structured questionnaire utilizing a seven-point Likert scale while implementing a purposive sampling technique.

The perceived service quality dimensions identified were tangibility, reliability, assurance, responsiveness, empathy, and image. The empirical findings revealed that “responsiveness” was found to be the most significant predictor of customer satisfaction. On the other hand, “image” (corporate image) has a positive but the least significant relationship with customer satisfaction followed by all other constructs. The exception is “reliability,” which is insignificantly related to customer satisfaction in Indian public sector banks.

The study cannot be generalized in the context of Indian banking sectors, as it only focused on the public sector. The findings of this study suggest that the six dimensions of perceived service quality model are a suitable instrument for evaluating bank service quality for public banks in India. Therefore, bank managers can use this model to assess the bank service quality in the context of Indian public sector banks.

There is dearth of research focusing on corporate image as a dimension of perceived service quality and its effect on customer satisfaction in the Indian banking context. Furthermore, similar studies were rarely found in the Indian context, especially within the public banking sector. Hence, this paper attempts to accomplish the research gap by empirically testing the satisfaction level of a large sample of the population in NCR toward six dimensions of perceived service quality rendered by selected public sector banks in India.

The equation of unified knowledge says that S = f (A,P) which means that the practical solution to a given problem is a function of the existing, empirical, actual realities and the future, potential, best possible conditions of general stable equilibrium which both pure and practical reason, exhaustive in the Kantian sense, show as being within the realm of potential realities beyond any doubt. The first classical revolution in economic thinking, included in factor “P” of the equation, conceived the economic and financial problems in terms of a model of ideal conditions of stable equilibrium but neglected the full consideration of the existing, actual conditions. That is the main reason why, in the end, it failed. The second modern revolution, included in factor “A” of the equation, conceived the economic and financial problems in terms of the existing, actual conditions, usually in disequilibrium or unstable equilibrium (in case of stagnation) and neglected the sense of right direction expressed in factor “P” or the realization of general, stable equilibrium. That is the main reason why the modern revolution failed in the past and is failing in front of our eyes in the present. The equation of unified knowledge, perceived as a sui generis synthesis between classical and modern thinking has been applied rigorously and systematically in writing the enclosed American‐British economic, monetary, financial and social stabilization plans. In the final analysis, a new economic philosophy, based on a synthesis between classical and modern thinking, called here the new economics of unified knowledge, is applied to solve the malaise of the twentieth century which resulted from a confusion between thinking in terms of stable equilibrium on the one hand and disequilibrium or unstable equilibrium on the other.

Low cost financing in establishing economical development is very important. At this point, financial intermediaries provide great contributions to economic development by eliminating asymetrical information problem between lender and borrower. It is possible to see capital market in anglo‐saxon countries and banking system in Europe and Japan mostly from historical dimension. However, long term financing is done through capital market in most developed countries at present. It is a common characteristic in countries such as Turkey, Chile and Mexico whose economies are financed by banking system. Singh and Weisse (1998), suggests that it is because of late industrialisation 1. Developing countries are generally those where there is less capital. Therefore attracting both internal and external savings into the banking system (for these countries) is very important from economical development point. At this point, powerful banks are preferred by the investors. Because the possibilty of failure is low (for these banks) 2. The most important factor that effects banks risk structure is public’s role. Because public can effect banks risk structure both at macro and micro level. Public’s influence on bank’s risk structure at macro economic level is due to general economical structure. If the general economic structure has high volatility and is away from consistency, this situation will increase the risk for banking sector. On the other hand, fiscal dominance is one of the main problems especially in developing countries. Fiscal dominance caused by lack of enough public revenue affects banking sector negatively. Thus, a goverment which can not prepare the macro economic environment where banks can function at high productivity will increase banks’ risks. In addition, banks require strict regulations and controlling as its structure is open to fraud. That these regulations are ignored or not prepared will lead to risk accumulation in the sector. It becomes a social responsibility of the state to take necessary cautions as these kinds of issues change a large cost on the society. Within this framework, the aim of our study is to examine public’s role on fragilities in banking sector. These examinations will be conducted for Turkey which experienced a collapse in banking sector in the recent period. In the first and second part of our study, public’s influence on the sector at macro and micro level will be examined. Experiences gained through Turkey example will be presented in the conclusion.

The purpose of this paper is to identify the traditional practices in the modern banking system (MBS) and examine the effects of these on employee response, customer reactions and customer loyalty, in the context of public sector banks in India. The study also investigates the effects on customers of employees’ use of traditional banking practices in the MBS.

A total of 460 usable responses were gathered from customers of seven public sector banks in Bhopal (MP), India. The study scales were refined and validated by exploratory factor analysis and confirmatory factor analysis.

The results indicated that the MBS utilising traditional practices (MBSTP) significantly influences unfavourable employee responses, customer reactions and loyalty. In addition, employee responses in MBSTP motivate and generate unfavourable reactions of customers, which further influence their loyalty adversely towards public sector banks.

The identified traditional practices with MBS are expected to bring clarity to the issue of employee response, customer reaction and loyalty. This would help the management of banks.

The results of the analysis indicated that public sector banking services are facing the internal challenges by its own service processes and employees’ behavioural intentions.

The purpose of this paper is to explore how the different dimensions of service quality influence customers’ behavioural intentions in the private and public sector banks, that is, in class and mass banking, respectively, and the implications for the service provider, consumer, society and consumer policy.

A contextually modified SERVQUAL instrument was used to capture customers’ perceptions of service quality followed by exploratory factor analysis to study the dimensionality of service quality in retail banking. Multiple regression was used to probe the influence of the dimensions of service quality on customers’ behavioural intentions.

The study revealed four dimensions of service quality in retail banking, namely, customer-orientedness, reliability, tangibles and convenience and showed that the service quality factor customer-orientedness comprising of the responsiveness and attitude of employees is most important in influencing customers’ behavioural intentions in the case of private sector banks and reliability of the service is most influential in the case of public sector banks.

Future research can focus on “service excellence” being extended beyond assessment of the quality of services, towards evaluation of the quality of life outcomes, to which public organizations contribute, appraisal of the quality of public governance processes and quality of performance in meeting social objectives.

Retail bank managers must realize the importance of employees providing competent, reliable service in the case of public sector banks and their responsiveness and behaviour towards customers in the case of private sector banks, as the keys to foster a culture of service excellence.

High-quality financial consumer policy must not only be able to increase customer satisfaction with financial services but also build security and trust in public administration through transparent processes and accountability. In this context, with public agencies being regarded as service providers and citizens as customers, the concept of quality must also visualize public agencies as catalysts of a responsible and active civic society.

This study explores the relationship between service quality and customers’ behavioural intentions in the private and public sector banks by linking both constructs at their dimensional level. It highlights major implications for the service provider, society, consumer and public policy based on the different needs, characteristics and requirements of customers of class and mass banking, that is, private and public sector banks.

This study gauges the profitability and performance of Indian commercial banks under the technology advancements. In this study, the authors identified three domains that give advantage to banks due to technology incorporation, that is, increased sales revenue, reduced operating expenses, and increased employee productivity. The authors assess the effect of these domains on banks’ profitability and performance. This study is conducted for the period between the years 2003 and 2018 across 34 public and private banks for empirical analysis. The authors examined the impact of investment in technology on the profitability using panel data analysis and evaluated the long-term effect of technology investment using the vector error correction model. This study found that there is a mixed effect of technology spend on the profitability and performance of Indian banks, where private sector banks are more aggressive in technology investment as compared to the public sector banks. This study recommends an optimal technology-related strategy to gain improved productivity for the banking business, that is, planned technology reserves, customer awareness campaigns about technology-enabled products, and robust employee–customer motivation policy.

Purpose: Worldwide economies have been shattered by the alarming increase in Non-Performing Assets (NPAs) in Banking Sector. In India, the rise in NPA levels gives a clear insight into the health of industry and state. This study aims to determine how NPAs in India impact the profitability of eight banks chosen from the public and private sectors; specifically: Punjab National Bank (PNB), Bank of India (BOI), UCO Bank, Punjab and Sind Bank (PSB), HDFC Bank, Axis Bank, ICICI Bank, and Yes Bank; during the period 2009/2010 to 2017/2018.

Design/methodology/approach: The study utilised IBM SPSS version 20 application to carry out our statistical analysis of measures of central location (mean and median), measures of dispersion (standard deviation), to carry out the Kolmogorov–Smirnov test to check the normality of data, the Mann–Whitney U test (for two groups) for median comparison between private and public sector banks and the Kruskal–Wallis test (for more than two groups) for median comparison for more than two banks. p ≤0.01 and p ≤0.05 were the two-tailed significance level used for determining the significance of all statistical tests.

Findings: Trend analysis and statistical tests show that the trend in public sector banks to have NPAs is higher compared to private sector banks, and losses arising from NPA impact the banks’ profitability.

Practical implications: It is apparent that NPAs are a large threat to banks in India as it reflects the state of the Indian economy. The growth of the economic cycle is predominantly dependent on the smooth and profitable functioning of private and public sector banks. This current study focusses on and compares the impact of NPAs on the profitability of public and private sector banks. NPAs have grown exponentially more in the case of public sector banks than private sector banks, which has affected the former banks’ financial health and performance. Increases in the level of NPAs adversely affect the working style and long-term stability of public and private sector banks in the economy.

Social Implications: NPAs have a negative influence on the profitability of the banks as well as on the economic growth of the country too. However, it is recommended that management in the banking sector, particularly the public banks, should use various preventive and recovery strategies to reduce the risk of failure and to keep track of NPAs to stay safe.

Originality/value: This study aims to determine how NPAs in India impact the profitability of eight banks chosen from the public and private sectors; specifically: PNB, BOI, UCO Bank, PSB, HDFC Bank, Axis Bank, ICICI Bank, and Yes Bank; during the period 2009/2010 to 2017/2018.

The purpose of this paper is to investigate the value relevance of segment information for both public and private sector banks in India. In doing so, this paper examines a rapidly developing economy and perhaps its most critical sector during this period of strong economic growth.

In this study uses the simplified Ohlson model, for a sample of 136 private sector and public sector banks for the period 2007-2010 in India.

The paper finds that public sector banks have higher share prices, higher earnings and more equity compared with private sector banks. Segment earnings data is highly value relevant for both sectors; however, segment equity data is only marginally value relevant for Indian banks. The number of segments is also value relevant and associated with higher share prices.

The results of this study contribute additional evidence to the literature on segment reporting by studying the effect of adoption of segment reporting in an emerging market. Findings from the paper are particularly relevant as India is currently in the process of changing its segment reporting requirements and moving to an IFRS-based segment standard.

Legitimacy is defined as the ability to exercise authority without resorting to open coercion. It is an essential asset for firms seeking to reach and maintain profitability. In this context, the purpose of this paper is to present the case of the Canadian banking industry, which has been highly criticized during the last decade for its record profits, low level of risk taking, high fees and buoyant CEO compensation packages. More specifically, this research aims to analyze the general public's perceptions of the industry during a 50‐month period, starting with the first strong reaction to recurrent announcements of record profits. It also seeks to look at industry reactions as a response to bank bashing.

The case study in this paper was conducted in two steps. It first analyzed public perceptions by studying the content of a sample of newspaper articles on the Canadian banking industry from 1996‐2000. It then examined the industry's reactions by reviewing the documents found on the web site of the Canadian Bankers Association.

The study shows that the crisis faced by the banking industry was of limited but sustained intensity. The industry used a mixed strategy, justifying itself through its public discourse and mounting a program to inform and educate the Canadian public on the effects of economic factors in their lives. The banking industry limited its reactions to Sethi's first‐level strategy found in the literature.

The paper highlights how the general public perceive profit levels in the Canadian banking industry and how legitimacy is clearly an issue in this context.

Recent institutional scholarship has discovered new possibilities for change in both the accumulation of incremental transformations and in the skillful action, institutional work, and creative activities of political and institutional entrepreneurs. Lurking behind stability and change lie actors who can act reflexively within and with existing institutions, and who do so on a routine, rather than exceptional basis, redeploying, recombining, and transposing extant systems to solve problems of identity and control. This paper probes the potentials and limits of those possibilities – and the prospects for reform in American banking – via a case study of the Bank of North Dakota and efforts to transpose its hybrid model of state and community logics into other states. The analysis first finds a full range of institutional labors and skillful activities emphasized by recent work as the foundation for transposition. It finds crisis; the presence of multiple logics; the mobilization of boundary spanning networks; the use of conferences and theorization to sustain independent discourse and collective identities; skillful framing; and substantial editing and recombination to fit the model with receiving states’ institutions. It then juxtaposes these conditions with outcomes in the states, developing some implications for actor-centered institutionalisms, current preoccupations with mechanisms, and state-level strategies for financial reform.