Customer Satisfaction In Public Sector Banks: Balancing The Digital Push And The Human Touch In India

Abstract The Indian banking sector has shifted dramatically from manual ledgers to advanced digital platforms. Public Sector Banks (PSBs), the backbone of the country’s financial system, have led this charge. Yet, despite heavy tech investments, customer satisfaction remains a pressing concern. This study explores the link between service quality, digital banking experience, and customer satisfaction in PSBs. Using a mixed-methods approach, we gathered data from 428 customers across urban and semi-urban areas in Karnataka, Maharashtra, and Tamil Nadu. Blending the SERVQUAL model with digital experience parameters, the findings show that while digital infrastructure has improved, the human element still dictates overall satisfaction. Customers like digital convenience but feel frustrated by poor grievance redressal and the digital divide affecting senior citizens. The study suggests a balanced "phygital" approach—using technology for efficiency while preserving the personal trust that remains a PSB's core strength.