The improvement in the perceptions of service quality and customer satisfaction has been an important strategic proposition for banks attempting to succeed and survive in the highly competitive banking environment in India. As a result, service marketing literature has witnessed an increasing number of research studies on service quality. However, bank managers perusing the extant literature find conflicting results as to which variable is directly related to the bottom line of the banks. This gap in the literature calls for a new wave of research on the subject. It is in this context the present study examines the effects of service quality on behavioural responses in banks in India. The study is designed as exploratory one based on primary data. The results of the study reveal that: (1) perceptions of high service quality are positively related to positive word-of-mouth communications; and (2) perceptions of high service quality are negatively related to switching propensity. This research has practical implications. When the customers of bank perceive high levels service quality they show positive behavioural responses. Positive behavioural responses lower customer defections. Lowering customer defections would increase bank’s profit and market share.