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  • Category: Miscellaneous

    Why shouldn't the public banks close down?

    We are witnessing a lot of public sector/nationalised banks are either collapsing or merging with other banks just to survive. I was also very confused as to why such things are happening but recently I had a first hand experience which gave me a good insight as to why the banks are on the verge of extinction and to a large extent the bank employees and their style of working is responsible and NPAs & other reasons come later.

    I had opened a bank account in a public sector bank and it took me 5 visits to get it done. Yes, the documentation and speed of working was faster than speed of light!.

    Now comes an even better part, I went to the bank to collect my debit card, cheque book and passbook. I was issued a passbook and then I asked for debit card and cheque book. I was again asked to fill a seperate form for debit card and cheque book. I obliged and filled the same. I was asked to come a day later. Now, this was my 6th visit. I reached there the next day and asked for debit card and cheque book. I was told to wait a little and this little was exact 1 hour. I was issued a debit card and then I asked for cheque book also. I was told to come after 12 to 15 days. I said I do not need a personalised cheque book but still for that also I will have to wait for 2 weeks.

    The amount of time I waited there and noticed their way of working gave me a very clear image as to why these banks are failing. Not only their style of working is slower than snail but also they do not value the time of their customers. This is my first experience with a public sector bank in 25 years and the time I spent waiting to get the account opened and collect the cards and other details gave me enough time to analyse why these banks are slowly but surely failing.

    I may be short-sighted in my observation but not wrong in what I have seen. Many other factors are responsible for their failure and would like members to share their experience.
  • #720644
    My experience with a very standard private bank I will explain to you.
    I wanted to open an SB account on the name of my granddaughter. I phoned up to the bank manager.
    He asked me the requirement. I told that an account is to be opened for a minor girl and her mother will be the guardian. He told me that he will send his person with the required papers and asked me to keep some originals ready. I said Ok. As mentioned his person came. Brought the required papers. He took the signatures of my daughter in law. Collected the required papers. After 5 days we received all the documents including debit card, chequebook etc.
    My son's experience for opening a bank account in a public bank. He has to pay 3 visits to the concerned bank. Each time he has to spend 2 hours minimum and finally he got the account opened.

    always confident

  • #720646
    I feel good at my nationalised bank where I have my account since 2001. Whenever I visit my bank, I straight away go to the Manager or Asst. Manager and tell what I wanted. Generally I go to bank to renew my term deposits or to get my debit card or to make entry/change my pass book. I was never made to wait for a long period. I was never told to come on the next day or any other day. The bank would contact me prior to deducting TDS and inform me the amount of deduction. And they would attend my phone calls and sort out my problems. My bank is good. Now that bank has been merged with another bank. Their services also too good.

    I also have an account with a scheduled bank. They too behave well and sort out my issues then and there. No waiting.

    No life without Sun

  • #720651
    I am having accounts in both Canara Bank and ICIICI Bank and have seen their style of functioning closely. The former bank is the nationalised one where as the later one is leading private bank. Recently I noticed the exhaustion of cash in ATM in the Canara Bank frequently and to overcome the cash crisis, I had to go to the bank counter of Canara Bank with a cheque located in my city to ease the crisis. Payment at the counter was delayed due to the rush.
    However. while visiting the ICICI Bank, they would hear you personally and would take every step to sort out your issues immediately. Their working style is amazing due to their personlised attention.

  • #720659
    Private sector banks have to compete in the market and have to give a good service otherwise they would not get business. On the other hand though public sector banks have changed their ways much from what it was earlier but still they have to improve much. The staff and officers belong to the same old age Govt office tendencies and work culture is not improved. They do not do everything at one go but do it in piece meals and the customer has to go their multiple times. Many times they will say that such and such things cannot be done in that branch and ask us better go to our original branch. Another problem in Public sector banks is that if there is some flaw in their online app then it would remain there for many months till the red tapism there is crossed and finally someone approves the new app. So they are still in that Govt department culture in them but they are better than the other state and central Govt departments in many respects. Their loan distribution is faulty and they do not have any control on the company if it does not repay the loan.
    Knowledge is power.

  • #720714
    I totally agree with the author that the public sector banks are not functioning to customer satisfaction and the recent merger of some banks to other banks added the woes. For example the Andhra Bank was merged with the Union Bank and the regular loan payments are put on hold and thus the customers are having lots of problem as non deduction of payments to loan from savings account would lead to default and even the compound interest later date. Like wise the SBH which was doing well was merged to SBI and become the worst service for us as on Mondays the servers are down and we are sent back.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

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