Indian Retail Banking: Issues Of Service Quality And Customers' Satisfaction

Healthy financial system is the pre condition for the proper growth and development of the economy in any country.

Introduction

Healthy financial system is the pre condition for the proper growth and development of the economy in any country. In India the history of banking is age old. In the year of 1770, first bank was established in the name of Bank of Hindustan which was liquidated during 1829-1832. Again the General Bank of India which was established in 1786 failed in 1791 due to various reasons. The State Bank of India is the oldest and largest bank which was earlier known as the Bank of Calcutta which later was renamed as the Bank of Bengal. Apart from this Bank of Bombay and Bank of Madras were established in 1840 and 1843 respectively.

In 1921 these three banks were merged and the Imperial Bank of India was founded. After the independence of our country this Imperial Bank became the State Bank of India in 1955. Banking institutions are very strong in performing the immense role for sustainable financial system. Before the nationalization of banking institution in India that is prior to 1960 the growth rate of Indian economy was very slow due to lack of proper banking system in the country. Small consumers, retailers were unable to access this financial system for their financial prosperity and growth. After drawing the attention of the policy makers of the economy, the banking industry started to grow faster and consequently trade, industry and commerce started to flourish.