
Abstract The banking sector in India has undergone significant transformation due to economic liberalization,rapidtechnological advancement, and increasing competition from private sector banks and financial technology companies. Although they both add to bank competition, public sector banks have been critical for financial inclusion for many segments of India's large population. In addition, a customer's perception of a particular bank has become a key factor for competition and sustainability of banking institutions in India. This paper examines customer perception towards certain public sector banks in Tirupur City, Tamil Nadu, through the collection of primary data from 120 respondents using a structured questionnaire. The study identified five aspects that contribute to customer perception of public sector banks, including: Service Quality; Staff Behaviour; Reliability; Accessibility; and Digital Banking Services. Percentage Analysis, Ranking Techniques, and Chi-square analysis were used as statistical tools to interpret data collected. The findings of the present study reveal that customers generally consider public sector banks to be institutions that their customers can trust. The results of this study indicate that Service Quality and Trust are the two most important aspects affecting customer satisfaction; however, demographic variables such as age and gender do not have significant positive or negative impact on customer perceptions of public sector banks. Further, customers also expect digital banking improvements, faster service delivery and better customer service. The research determined that public sector banks would achieve better customer satisfaction and customer loyalty results through improved technological infrastructure and enhanced service efficiency.
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