Comparative Analysis of Customer Satisfaction & Its Effect on the Financial Growth Study on Privatized & State-Owned Banks in Pakistan
IJRAR - International Journal of Research and Analytical Reviews (IJRAR), E-ISSN 2348-1269, P- ISSN 2349-5138, Volume.7, Issue 1, Page No pp.877-887, February 2020, Available at : http://www.ijrar.org/IJRAR2001122.pdf
11 Pages Posted: 12 Nov 2020
Date Written: February 3, 2020
According to The Global Competitiveness Report 2019 by World Economic Forum, the economy of Pakistan (the fifth largest country by population as reported by the United Nations) stands at number 110 out of 141 countries. One of the key objectives of the Privatization of SOEs, as per the Privatization Commission of Pakistan (n.d.), is to reduce the fiscal burden on the national exchequer and improve the economic condition of the country. This is a complete shift from the contemporary concept of "Welfare State," where the State was looked like the sole incharge for the economic and financial growth of the country. The research aims to look into customer satisfaction as one of the primary performance metrics of the financial growth of public banks, which were privatized in a quest to answer whether it is advisable for the governments to adopt the policy of Privatization or not. Customer satisfaction was measured using the snowball sampling technique via an online survey from Habib Bank Limited, United Bank Limited, and National Bank of Pakistan. The financial performance was calculated from the financial ratios data published in the annual financial reports of these banks. Pearson correlation and independent-sample t-test were computed using SPSS 22.0 to analyze the data. According to the findings of the study, there is no significant relationship between customer satisfaction and financial growth of the banks. No significant differences were found between the customer satisfaction score of privatized (HBL & UBL) and State-owned banks (NBP). There were no significant differences between the financial growths of NBP and HBL, but there were significant differences between the financial growths of NBP and UBL.
Keywords: Customer satisfaction, financial growth, financial ratios, privatization, State-owned enterprises
JEL Classification: G21, G28
Suggested Citation: Suggested Citation