Effect of Trust and Service Quality on Consumer Perception: A Study on Private Banking Sector

Effect of Trust and Service Quality on Consumer Perception: A Study on Private Banking Sector

Shweta Pandey

Under the Guidance of Dr. Ketki Kumari
Master of Business Administration
School of Business, Galgotias University Gautam Budh Nagar

The Indian banking industry is undergoing rapid growth and significant transformation. Driven by a steadily growing economy and rising disposable incomes, banks are now presented with new opportunities to offer enhanced services and customer-centric products. This dynamic environment has intensified competition, particularly among public sector banks, private sector banks, and foreign banks operating within the country. All of these institutions maintain extensive branch networks and are continuously striving to attract and retain customers.

In today’s highly competitive and evolving marketplace, profitability hinges on the ability to deliver superior services at optimized costs. For banks to remain relevant and successful— especially amidst constant technological advancements and frequent policy changes—they must regularly reassess and refine their strategies. Central to this process is a deep understanding of customer needs, preferences, and expectations.

This research project examines the impact of trust and service quality on consumer perception within the private banking sector in South West Delhi. The study relies exclusively on secondary data, including scholarly articles, industry reports, and prior research findings. All sources have been critically reviewed and the insights are presented in a clear, structured, and actionable format. The primary objective is to offer practical recommendations that can support private banks in enhancing service delivery and improving overall customer satisfaction.