Abstract: This study investigates customer satisfaction and service quality among public sector banks in Tambaram, a growing commercial hub in Chennai. With public banks playing a pivotal role in financial inclusion, understanding service delivery from a customer perspective becomes critical, especially in the digital age. Using a descriptive research design and a structured survey grounded in the SERVQUAL model, primary data were collected from 385 respondents across various demographic segments. The data were analysed using descriptive statistics, ANOVA, and factor analysis to identify service quality dimensions impacting satisfaction.

The findings indicate significant gaps between customer expectations and actual service delivery, particularly in responsiveness, digital banking services, grievance redressal, and personalized assistance. While tangibility and reliability dimensions showed moderate performance, low scores in responsiveness and empathy reflected concerns over long wait times, inconsistent staff behaviour, and limited digital adaptability. Qualitative feedback highlighted dissatisfaction with ATM downtimes, mobile app usability, and a lack of support for senior citizens and differently-abled customers.

This study contributes to the literature by contextualizing service quality in a semi-urban Indian setting and identifying key latent factors such as digital accessibility, service efficiency, and human interaction that strongly influence customer satisfaction. Strategic recommendations are provided for public sector banks to adopt customer-centric innovations, enhance employee training, modernize branch infrastructure, and integrate feedback mechanisms to foster continuous improvement. Practical implications are offered for bank managers aiming to boost customer loyalty, reduce service delivery gaps, and build a sustainable competitive advantage in a rapidly evolving banking environment.

Keywords: Customer Satisfaction, Service Quality, Public Sector Banks, SERVQUAL, Tambaram, Digital Banking

| DOI: 10.17148/IARJSET.2025.12413