Abstract: The main objective of this research was to determine the dimensions of service quality in the banking industry of Iran. For this purpose, The study empirically examined the European perspective (i.e., Gronroos’s model) suggesting that service quality consists of three dimensions, technical, functional and image. This research is an applied research and its strategy is casual strategy. A standard questionnaire was used for collecting the data. Two hundred and eighty seven customers of Pasargad Bank of Northwest were selected through cluster sampling and were studied. The results from a banking service sample revealed that the overall service quality is influenced more by a consumer’s perception of technical quality than functional quality. So, the Gronroos model is a more appropriate representation of service quality than the American perspective with its limited concentration on the dimension of functional quality in the banking industry of Iran. So, knowing the key dimensions of the quality of services in this industry and planning for their improvement can increase the satisfaction of customers and productivity of this industry.