International Journal of Trend in Scientific Research and Development (IJTSRD)

Volume 5 Issue 5, July-August 2021 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470

A Comparative Study on Service Quality of

Bank of Baroda and ICICI Bank Using Servqual Model
G Nandini1, Dr. B. C. Lakshmanna2
1
Student, 2MA, LLM, MBA, PhD,
1,2
JNTUA School of Management Studies, Anantapur, Andhra Pradesh, India

ABSTRACT How to cite this paper: G Nandini | Dr.

Public sector banks like BANK OF BARODA are in tremendous B. C. Lakshmanna "A Comparative
pressure from private sector banks like ICICI banks. Public sector Study on Service Quality of Bank of
banks are realizing the significance of customer-centred philosophies Baroda and ICICI Bank Using Servqual
and are turning to improve service quality to help managing their Model" Published in
International
businesses. This paper has started with the concept of service quality
Journal of Trend in
and has demonstrated the model of service quality gaps. Scientific Research
SERVQUAL is an effective model for analysis of the difference and Development
between customer expectations and perceptions in the banking sector. (ijtsrd), ISSN: 2456-
6470, Volume-5 | IJTSRD45171
KEYWORDS: SERVQUAL MODEL, CUSTOMER SATISFACTION,
Issue-5, August
PERCEPTION, EXPECTATION 2021, pp.1690-1695, URL:
www.ijtsrd.com/papers/ijtsrd45171.pdf

Copyright © 2021 by author (s) and

International Journal of Trend in
Scientific Research and Development
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Attribution License (CC BY 4.0)
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INTRODUCTION Public Sector Banks:

Banking regulation act of India,1949 defines banking public sector banks are a major type of banks in India,
as “accepting for the purpose of lending or of where a majority stake is held by the government.
investment of deposits of money from the public,
Ex. State Bank in India, Bank of Baroda etc…
repayable on demand of otherwise or withdrawable
by cheque, draft order or otherwise”. The Reserve Private Sector Banks:
Bank of India act, 1934 and the banking operations in In these banks, most of the equity is owned by private
India. bodies, corporations, institutions or individuals rather
than government.
Banking is a major part of the service sector in India.
Quality management and quality improvement are Ex. HDFC Bank, ICICI Bank etc…
mandatory for success of the banking sector and for NEED OF THE STUDY
our economy. Components of Quality may be The purpose of this study is to compare the customer
visualized as Product Quality, Process Quality and expectations and perception in various dimensions
Human Resource Quality. Tangiblity, Reliability, Responsiveness, Assurance
BROAD CLASSIFICATION OF BANKING and Empathy.
INDIA SCOPE OF THE STUDY
The RBI is the supreme monetary and banking The study encompasses customer service quality of
authority in the country and has the responsibility to Bank of Baroda and ICICI Bank located at Anantapur
control the banking system in the country it keeps the region. The study covers respondents of customers of
reserves of all scheduled banks and hence is known as Banks. The customers belong to various professions,
the Reserve Bank.

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both genders with varied income group and age HYPOTHESIS TESTING
group. H0: There is no significant difference between
Service quality of ICICI Bank and Bank of
OBJECTIVES OF THE STUDY
To compare customers expectation and perception Baroda.
level towards service quality of Bank of Baroda H1: There is significant difference between
and ICICI banking Services in five dimension. Service quality of ICICI Bank and Bank of
Baroda.
To analyse the difference gap score between
customers expectation and perception towards STATISTICAL TOOLS AND TECHNIQUES
service quality of banking Services. The data will be analyzed by using R programing,
Ms. Excel with the following tools.
RESEARCH METHODOLOGY
SERVQUAL MODEL
SOURCE OF DATA
Descriptive measures like mean, weighted mean
PRIMARY DATA:
T Test(two sample)
Primary Data has collected by using questionnaire
based on SERVQUAL model. The customers LIMITATION OF THE STUDY
approached personally in order to seek true responses All the answers given by the respondents are
on quality of service in both the banks. assumed to be true.
The study is limited to only Bank of Baroda and
Sample Size:
100 respondents selected by using convenient ICICI Banks Anantapur only
sampling method.
DATA ANALYSIS AND INTERPRETATION
TABLE: 1 CUSTOMERS DEMOGRAPHIC PROFILE OF BANK OF BARODA & ICICI BANKS
CUSTOMER DEMOGRAPHIC PROFILE
PARAMETERS BANK OF BARODA(N=50) ICICI BANK(N=50)
AGE FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
BELOW 25 8 16% 12 24%
25-40 12 24% 18 36%
40-55 16 32% 10 20%
ABOVE 55 14 28% 10 20%
TOTAL 50 100% 50 100%

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INTERPRETATION:
The pie chart presents a detailed analysis of customers who had participated in this study. In case Bank of
Baroda there is a highest percentage of people in the age group of 40 -55. In other side the ICICI bank the age
group of 25-40 are with 36%.
Table: 2 ON BASIS OF GENDER
CUSTOMER DEMOGRAPHIC PROFILE
PARAMTERS BANK OF BARODA(N=50) ICICI BANK(N=50)
GENDER FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
MALE 38 76% 36 72%
FEMALE 12 24% 14 28%
TOTAL 50 100% 50 100%

INTERPRETATION:
Above column chart represents the gender of respondents, here by the percentages of both male and female of
Bank of Baroda is 76% & 24% and ICICI is 72% & 28%.
TABLE: 3 ON BASIS OF MONTHLY INCOME
Customer Demographic Profile
Parameters Bank Of Baroda(N=50) Icici Bank(N=50)
Monthly Income Frequency Percentage Frequency Percentage
5000-20000 8 16% 12 24%
20000-35000 12 24% 18 36%
35000-50000 16 32% 10 20%
ABOVE 50000 14 28% 10 20%
TOTAL 50 100% 50 100%

INTERPRETATION:
The above bar chart represents the monthly income of respondents, here by the percentages above 50000 income
of BOB is 28% which is greater than the ICICI that is 20%.

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INTERPRETATION:
The above bar chart represents the monthly income of respondents, here by the percentages above 50000 income
of BOB is 28% which is greater than the ICICI that is 20%.
TABLE: 4 ON THE BASIS OF OCCUPATION
Customer Demographic Profile
Parameters Bank Of Baroda(N=50) Icici Bank(N=50)
Occupation Frequency Percentage Frequency Percentage
SELF EMPLOYED 15 30% 19 38%
STUDENT 12 24% 15 30%
HOME MAKER 4 8% 6 12%
RETIRED 8 16% 4 8%
TOTAL 50 100% 50 100%

INTERPRETATION:
The above column chart represents the occupation of respondents, here by the percentages of self employed,
students, home maker and retired persons of BOB bank and ICICI bank.
SERVQUAL MODEL
1. Tangibles
BOB BOB ICICI ICICI GAP SCORE (P-E)
Tangibility E P (P-E)
E P E P BOB ICICI
The bank has modern looking equipment in its
4.81 3.04 4.91 3.91 -1.77 -1.0
premises
The bank has visually appealing physical
4.89 3.66 4.99 4.8 -1.33 -0.19
facilities in its premises
The appearance of the employees including dress
4.53 3.23 4.9 4.33 - 1.3 -0.57
etc. is appealing
The bank has visually appealing material and
4.28 3.50 4.92 3.95 -0.78 -0.97
tools associated with service
Total Gap Score = 5.18 = -2.73
INTERPRETATION:
The above table shows the 100 customers of BANK OF BARODA and ICICI Bank. As can be seen from Table
above of SERVQUAL MODEL scores for Tangibility, all questionnaire responses were negative. And the gap
score of Bank of Baroda is -5.18 and ICICI bank is -2.73. In this case the ICICI Bank provides better facilities
when compared to Bank of Baroda.

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2. Reliability
BOB BOB GAP ICICI ICICI GAP SCORE
Reliability E P (P-E)
E P SCORE (P-E) E P (P-E)
Bank keeps its promise 4.81 3.21 -1.6 4.86 3.87 - 0.99
Bank has the concern for solving
4.89 3.8 -1.09 4.96 3.78 -1.18
problem of customer
Bank performs service right at the
4.9 3.33 -1.57 4.97 3.9 -1.07
very first instance
The bank provides the service well in
time. The bank keeps error free 4.82 3.5 -1.32 4.88 4.1 - 0.78
records
Total Gap Score =-5.58 =-4.02
INTERPRETATION:
The above table shows the 100 customers of BANK OF BARODA and ICICI Bank. As can be seen from Table
above of SERVQUAL MODEL scores for Reliability, all questionnaire responses were negative. And the gap
score of Bank Of Baroda is -5.58 and ICICI bank is -4.02. customers expects more from reliability in Bank of
Baroda when compared to ICICI Bank.
3. Responsiveness
BOD BOD ICICI ICICI GAP SCORE (E-P)
Responsiveness E P (P-E)
E P E P BOB ICICI
The employees of bank are able to tell the amount
4.89 3.16 4.93 3.84 -1.73 -1.09
of time they will take to provide the service
Employees of bank provide prompt service to
4.72 3.23 4.94 4.0 -1.49 -0.94
their customers
Employees of the bank are always willing to help
4.63 3.89 4..97 3.9 -0.74 -1.07
their customers.
The employees of the bank take no time in
4.80 3.56 4.9 3.83 -1.24 -1.14
attending the customer
Total Gap Score =-5.2 =-4.17
INTERPRETATION:
The above table shows the 100 customers of BANK OF BARODA and ICICI Bank. As can be seen from Table
above of SERVQUAL MODEL scores for Responsiveness, all questionnaire responses were negative. And the
gap score of Bank of Baroda is -5.2 and ICICI bank is -4.17. ICICI provides better services to customers.
4. Empathy
BOD BOD ICICI ICICI GAP SCORE (E-P)
Empathy E P (P-E)
E P E P BOB ICICI
The bank pays attention to each customer
4.94 3.01 4.87 3.44 -1.93 -1.43
individually
The working hours of bank are quite convenient
4.81 3.36 4.89 4.6 -1.45 -0.29
to the customer
bank attaches due importance to customer interest 4.45 3.27 4.97 3.94 -1.18 -1.03
The company understand the specific needs of its
4.09 3.23 4.91 3.1 -0.86 -1.81
customer
Total Average Gap Score [E-P/4 =- 5.42 =4.55
INTERPRETATION:
The above table shows the 100 customers of BANK OF BARODA and ICICI Bank. As can be seen from Table
above of SERVQUAL MODEL scores for Empathy, all questionnaire responses were negative. And the gap
score of Bank Of Baroda is -5.42 and ICICI bank is -4.55.

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5. Assurance
INTERPRETATION:
The above table shows the 100 customers of BANK OF BARODA and ICICI Bank. As can be seen from Table
above of SERVQUAL MODEL scores for Assurance, all questionnaire responses were negative. And the gap
score of Bank of Baroda is -4.218 and ICICI bank is -4.42.
BOD BOD ICICI ICICI GAP SCORE
Assurance E P (P-E)
E P E P BOB ICICI
The behaviour of employees of bank impresses the
4.78 3.62 4.93 3.79 -1.16 -1.14
customer and instils confidence in it.
Customer feels safe while negotiating with the
4.89 3.78 4.95 3.5 -1.168 -1.45
employees of the bank
The employees of the bank are courteous and
4.56 3.24 4.89 4.2 -1.02 -0.69
friendly with the customer
Employees of bank are knowledgeable and are
4.63 3.56 4.9 3.76 -1.07 -1.14
capable ensure to questions
Total Gap Score =-4.218 =-4.42

FINDINGS
The respondents with income of 35,000-50000 effectiveness, price, efficiency and assurance. ICICI
are high in Bank of Baroda that is 32% when Bank are facilitating better products and services to
compare to ICICI Bank that only 20% customers. Bank of baroda have been able to create
The gap score of Bank Of Baroda is -5.58 and good faith among customers but they have not been
ICICI bank is -4.02. customers expects more from very efficient if furnishing quality services to end
reliability in Bank of Baroda. customers. ICICI Bank need to incorporate new ideas
There is a significant difference in the to establish themselves in competitive market while
performance of Bank of Baroda and ICICI Bank Bank of Baroda need to improvise their basic
on the basis of services quality facilities and encourage more employees for
participation in skill enhancement programs Both
CONCUSION
banks have got Negative Scores in all the dimension
The present study tried to analyze the quality of
of SERVQUAL model, only difference is of
services offered by ICICI Bank and Bank of Baroda
magnitude. It has been proved in the study that ICICI
and to comprehend the anticipation and customer
satisfaction of both types of banks on factors of Bank provides better customer service in comparison
to Bank of Baroda.
tangibility, responsiveness, reliability, empathy,

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