Service Quality Perception in Banks Post Mergers and Acquisitions: An Empirical Study

Abstract

Mergers an d Acquisitions in the Indian
B anking Sector have becom e the order o f
the day. The ever increasing com petition
has forced banks to deliver quality services
to the customers. The entry' o f private
sector banks a n d foreign banks, which
delivered better services than nationalized
banks, fo rc ed n a tio n a liz ed b an ks to
improve their service quality. In th is p a p e r w e u n d e r t a k e a n
exploratory study conducted in D e lh i
w ith the o b je c t iv e o f
understanding the
relationship betw een ban k
m ergers an d service
q u a lity p e rc ep tio n .
The study b a sed on
p erson al interview o f
200 consum ers presents
their perceptions o f the
im pact o f ban k mergers an d
acquisitions on the expected
change in the quality o f their
banking service. The study em phasizes
an d exam ines the relationship between
consumers' dem ographic characteristics
(gender, eth n icity , e d u c a tio n a n d
income) an d service quality perception
o f ban k mergers an d acquisitions in
Indian environment. The survey results
rev ea l th a t th ere is in s ig n ific a n t
relationship betw een b an k mergers an d
custom er perception based on their
demographic characteristics.