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  • Category: Miscellaneous

    Bank depositors stand in queue but loan seeker sits in front of bank manager in AC room.

    Have you ever been to the bank, standing in the queue to deposit the money while the loan seekers are sitting in the comfortable cabin. Is that fair? Let's discuss.

    Some times I feel sorry for the banks which gives wrong priority. Scores of depositors who come at the first hour, stand up in the queue and wait for their chance to deposit their money in the bank. On the other hand those who sought the loan, sits in the manager cabin and even has the courtesy of getting cool drinks and tea in a AC room. The bank depositors are not cared and the loan taker is given red carpet welcome. And the same loan seeker would seek re scheduling of the loan after some sincere payments and eventually goes bankrupt. Is it not the reality ?
  • #573028
    It is the displeasure of giving away interest to the depositors that make to stand in the queue near the counter, and the pleasure of taking interest from the loan seekers by sitting in front of the manager. It is the key difference between giving and taking something in life.
    No life without Sun

  • #573033
    Depositors take from the banks whereas the loan takers give to the banks. This is the reason, they get red carpet welcome.
    Most of the depositors who stand in a queue , deposit only paltry sums and consume the resources of the bank in terms of human resources time for depositing only a few thousand rupees and throw tantrums also like delays etc. In return, they get interests @ 4% in the savings bank accounts and more than 8% in case of term deposits.
    The loan seekers, on the other hand, pay interest to the bank @ more than 10%.
    Only the difference of such interest rates constitutes the income of the bank out of which salaries etc. of the staff is paid.
    In the case of high depositors like big businessmen etc., banks extend VIP treatment to them also. Sometimes they offer services of collecting the money from their premises also.
    As far as loan defaulters are concerned, they belong to a different class. Common loan takers are generally not able to manipulate the loans and are made to pay through their nose.

    Let us encourage each other in sharing knowledge.

  • #573053
    K mohan sir, nothing like that. The depositor goes with small amount Rs 100 to 1 lakh. Where as the person goes to get a loan is a big amount and they need to discuss some things and paper work.
    For which they need to sit with branch manager or other officer. But you must have seen a big depositor always get same treatment , sit in the manager room, get drinks or other things as well as no need to go to the queue, office boy ( peon) will do fill the deposit slip as well as deposit in counter and give the receipt to the customer. It all because how much revenue bank will get from you and will serve accordingly.

  • #573073
    One more thing is you will get 4.5% to 6% interest per annum against your deposits; which is may be 8.5% for senior citizens, but you need to pay more than 13%-24% interest to pay the bank against loans. This is why the banks attract more lenders, less depositors.
    Nowadays, SBI removed counter depositing facility and launched Cash Deposit Machines (CDMs) in every branch in cities. They don't care whether money is being deposited, machine works or not; the employees simply sits in AC chambers wait for more lenders, new account creating, renewing FDs, converting RDs, and many more beneficiary programs.

    Naresh Kumar
    'Every bad situation will have something positive. Even a dead clock shows correct time twice a day.'

  • #573075
    If a person deposits money to a bank, he/she gets interest. If a person takes loan form a bank, the bank gets interest. Also, a loan generally involves a high amount and a checking of agreements, documents etc,. As my father is working in State Bank of India for about 20 years, I know another reason. A bank is allotted a scale based on the transactions (loans and deposits) happening in it. The manager is appointed based on the scale of a bank i.e. scale 2 officer is a bank manager for scale 2 bank etc,. Once in a year or so, the bank manager is given a score based on the performance. So, there will be a bit more good treatment to people who take loan than to people who deposit but there won't be far difference.

    Let us continue learning.

  • #573081
    In fact the main reason behind this situation, if it exists, is slightly different. These days the banks are receiving more deposits. At the same time the number of people taking loans has come down drastically. This has become a very crucial issue that are faced by several banks.
    Another thing is that for giving a loan application lot of paper works has to be done with the help of the manager or other senior staff member, where as for depositing just fill up the form and pay the amount in the counter.
    Still I don't think that there is a different treatment by the staff towards these two categories.


  • #573087
    To get something, you have to make some effort. The depositors will earn an interest of 4-6% per annum in case of saving account and approximately 8.5% per annum for FDs. To get this interest, they stand in queue!

    On the other hand,the bank will earn an interest of 10-18% per annum if they give loans (banking loan to personal loan) to the customers. Naturally they would treat the future interest-givers royally in the AC chambers.

    "If you are killed in action, you go to Heaven. If you win, you rule this Earth (as beautiful as Heaven). That is why, O son of Kunti, take a firm resolve and fight!"-- Shrimad Bhagwad Gita

  • #573133
    It is the loans that give income to the banks. For deposits bank has to give money as interest. However bank needs both. One is its resource and the other its deployment.

    As Mr.T.M.Sankaran noted, getting deposits is not so difficult now a days. Some banks first plan their loans and accordingly plan for getting deposits.

    But the situation was not like this one or two decades ago. I was exactly the opposite way. Depositors especially the NRI depositors used to get red carpet welcome. Loan requests were looked down an the loan interest was very high. There were times when loan interests were even more than 20 percent.
    The loyalty of the present day deposit customers cannot be taken for granted, as a small change in interest rates may make them shift to other places. But unless some serious issue happens or the difference in rates is very much, loan customers stick to one bank.

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