Banks are the lifeblood of an economy. The economic growth a country has a direct relationship with the structure and strength of banking industry of the country. Banks offer a large gamut of financial products and services to retail customers such as savings account, deposits, loans, ATMs, debit and credit cards, cheque and draft facility, locker facility, universal banking, internet banking, mobile banking etc. and it is really difficult to imagine the life of individuals without these services in today's world. As banks offer more or less similar types of products and services and it is a matter of depositing one's hard earned money, it is really interesting to know what factors determine the selection of a commercial bank by various individuals for opening a bank account or for a bank deposit or for other financial services that matter.
This study is an attempt by the researchers to find out the important factors that determine the selection of a bank by various people. Researchers have not only tried to find out such factors but have also arranged them in the order of their importance. For this purpose, researchers have conducted a survey of 300 retail banking customers of Gwalior with the help of a standard questionnaire and have used the technique of factor analysis for analyzing their responses and finding out dominant factors. The study uses sixteen research variables that by and large determine the selection of a bank which are finally grouped into five factors after the analysis.