This research aims at measuring the service quality in public and private banking sector and identifying its relationship to customer satisfaction and behavioral intention. The study was conducted among 500 bank customers by using revised SERVQUAL instrument with 26 items. Behavioral intention of the customers was measured by using the behavioral intention battery. The researcher has used a seven point likert scaling to measure the expected and perceived service quality (performance) and the behavioral intention of the customer. The instrument was selected as the most reliable device to measure the difference-score conceptualization. It is used to evaluate service gap between expectation and perception of service quality. Modifications are made on the SERVQUAL instrument to make it specific to the Banking sector. Questions were added to the instrument like Seating space for waiting (Tangibility), Parking space in the Bank (Tangibility), Variety of products / schemes available (Tangibility), Banks sincere steps to handling Grievances of the customers (Responsiveness). The findings of the study revealed that the customer’s perception (performance) is lower than expectation of the service quality rendered by banks. Responsiveness and Assurance SQ dimensions were the most important dimensions in service quality scored less SQ gap. The study concluded that the individual service quality dimensions have a positive impact on Overall Satisfaction.
