A Comparative Study on the Influencing Factors Dominating the Customers’ State/private Bank Choice

 The state banks have not succeeded in marketing and attracting customers. The have not been able to draw considerable financial resources. Furthermore, the resources provided have been not at a satisfactory form a qualitative as well as quantitative point of view. The major responsible factor for these problems lays in the banks having a state ownership. Being a service-provider and taking the government policies such as must-pay loans into operation are clearly mentioned in the banks’ statutes. The Central Bank also treats the commercial and professional banks as its branches. There exist a heavy and forceful restricting laws and regulations. Human resources, technology improvement, contracts and many other issues also are not under the banks control. It is of much importance for the banks to identify the influencing factors that impact the clients’ bank choice, as many state banks are getting privatized shortly. The research intends to identify and to rank the influencing factors dominating the clients’ bank choice and then propose some measures to the banking system. Findings indicate that the getting more interest has been the most responsible factor in the choices where private banks had been picked up, and having a quicker access to branches as the most important factor for those who had selected state banks as their choice, with the looking to be the least important factor in their decision. The pattern of the ranking shows the behavioral and attitudinal factors, technology, financial and physical facilities, in the mentioned order have had the highest impact on the clients’ choice for private banks. For the state banks the priority has been given to the behavioral and attitudinal factors, technology, physical and financial facilities. So the behavioral and attitudinal factors in terms of dominating the customers’ choice play the most important role in both state as well as private banks.