An assessment of service quality in the City Bank Ltd.

Abstract

Banks play an important role in the economy of the country. After liberation except the foreign banks all banks were nationalized. These banks were merged and grouped into six commercial banks. Of the total six commercial banks Uttara and Pubali were transferred to private sector from 1985. In my research paper I mainly focus on financial position of The City Bank Ltd. The City Bank Limited (CBL) is the first private sector Bank in Bangladesh. The Bank has been operating since 1983 with an authorized capital of Tk. 1.75 Billion under the entrepreneurship of twelve prominent & leading businessman of the country. The noble intention behind starting this Bank was to bring about qualitative changes in the area of Banking and Financial management. To determine the overall performance of the bank I have made a research on the service quality if the City Bank ltd. Because measuring service quality is the best way to evaluate any service sector. There are four measures of service quality- SERVQUAL, importance weighted SERVQUAL, SERVPERF, and importance weighted SERVPERF. In developing country the most useful measurement is SERVQUAL. By asking 22 expectations and perceptions questions to the customer of the City Bank Ltd. about the performance of the bank on the basis of SERVQUAL scale we find six factors are important in measuring service quality. The leading researcher in this area Parasuraman, et al After substantial factor analysis and testing, reduced the 10 service quality determinates in SERVQUAL to 5 (tangibles, responsiveness, reliability, assurance, and empathy. The original ten dimensions are Tangibles, Reliability, Responsiveness, Competence, Courtesy, Credibility, Security, Access, Communication, Understanding the Customer. And in my research I found four factors are important in regarding the service quality of The City Bank Ltd. And these are- tangible & empathy, responsiveness, reliability and assurance, where tangibles and empathy are working as one factor. In my research factor analysis, t-test and chi-square technique are used. The variables were 12; the 50 people have been interviewed. The answers of them were applied in the statistical technique. And interpreting the result of these techniques we find, the customer of the bank was highly satisfied with the Tangibles & Empathy of the bank. And to be more delightful the customers still want some extra effort from the bank like in terms of reliability, assurance and responsiveness. The reason behind of this is that The City Bank Ltd. always believes in customer relationship and the customer always expect much more higher than to the others. And without no doubt it can be said, very soon after fulfilling all the four factors the bank will increase the expectation of its customer more towards them. And The City Bank Ltd is the bank that always loves to please their customer and having better relationship with them.