TE, what's your perception of PSU Banks Except SBI?

Or let me rephrase, why do you think the image of PSU banks is so bad among the 20-40 age groups?
Partly gaslighting, partly prejudice.

One of the primary things that I noticed with my city's PSU banks (PNB and UCO) is the lack of manpower. There are way too less staff compared to the customers they have to deal on daily basis. Most of the time the manager is chilling or AWOL, while the major burden of the task falls on the employee who is working directly below the manager. Rest of the employees are either too naive to help you with anything or just busy with cash exchanges/passbook updating/meeting insurance goals.

Private banks do not have this problem because the customer base is miniscule compared to PSUs, which means number of customers per employee is less, hence faster services. Also, people who use private banks are much more accustomed with online banking, thereby lowering the chances of branch visit, further leading to quick services.

As much as people tend to curse PSU banks, they are the reason why India's economy is still under control and thriving. Otherwise, there would be frauds and cases of funds misappropriation every other day.
 

dexterz

Adept
I feel their websites and app are archaic compared to Private sector ones. Last I used PSU for personal account in 2010 and back then I had to submit a letter "Dear Sir, As I forgot my Inet banking password, please reset the same blah blah..here's the 25rs to reset it" and now I'm using SBI business acct for my apartment association work and password reset is still crap. Looks like I'll have to visit the branch to sort it out.
I also tried setting up some inet bank access for my mom on her PSU accounts and their apps gave me the run around and I got fed up and just configured gpay for her.
So I prefer HDFC and the like for the app/site UI/UX. Haven't stepped into a bank branch in last 4 or 5years
 

gourav

Adept
It's been a while (12-15 years) but I have personally dealt with a couple of PSU banks except SBI.

One of them was United Bank of India, which has since been merged with PNB. Whenever I visited the branch, I would be faced with long queues for whatever I wanted to do. I often needed to deposit money. They wouldn't keep the deposit slips freely available, you had to go to a counter and ask for the deposit slip. They had no place to put it and write. I always had to make do with the chairs, which often wouldn't be empty. Their people kept changing every few months. Along with this, they'd also rearrange the counters for everything. Every few months I went there, things would have moved around and would take me 5 minutes to figure out where I had to go. I had to visit at least two counters for almost everything. Even for withdrawing cash, I would have to go get it entered in a register and get a token number, then I would go the cash counter. I was very happy the day I closed that account.

Another was Bank of India. This was for my father's account, so dealings were less. Some things were similar to above, but less wild in comparison. This branch always looked crowded. They had designed the branch in such a way that there was a lot of empty space between cubicles, where customers couldn't go, and there was literally no space for customers to queue up. If I stood behind the person in any counter, I would block the passage for others. Another thing I can remember is that we activated internet banking later on. They asked us to run it in a Windows application instead of a browser. Once registered on the app, browser based login got disabled. Then we formatted our PC and discovered that there was no way to re-register on another PC. It was literally just one PC forever (kind of like UPI, but it's ok on phone, silly on PC. Plus UPI provides easy way to re-register on changing the phone). So we couldn't use it. I don't know what's the current status of their internet banking services. I suppose my father still has that account.

In general I always got a sense that PSU bank employees had no idea of what it meant to work in a service industry. They would always be irritable and behave as if they were doing us a favour by literally just doing their job. Which is just as well because HR policies of govt. company means they could get their salary forever even if they just sat around. So having to do anything war annoying for them.

My experience with branches of SBI was similar. But thankfully, in the initial days, my sister was working in SBI, so I had no trouble getting any work done. And in a couple years of opening the account, I had started doing everything online. Thankfully SBI's internet banking is pretty functional (barring the recent changes to the login process) and I have never had to visit their branch in the last 8 years or so.

Here I would also like to add that my recent experience with private banks haven't been much better. The only thing is that now we don't have to visit their branch, but when we do, the experience is usually poor. I once visited HDFC to get a statement printed. They said their printer was busy and made me wait for over an hour for a 5-page statement which they printed on a dot-matrix printer. Then they charged me some 75 Rupees for it. I then visited once to change my credit card address (which cannot be done online). They gave me the form, but asked me to fill and drop it in the dropbox outside the branch. It is worth mentioning that it was raining heavily and the dropbox was at least 20 steps away from the branch's gate. Yet they refused to take the letter. Later they rejected that application due to signature mismatch. I didn't have the courage to visit the branch for this and just left it.

On another occasion, I was unable to activate my Axis Bank Credit Card and the customer care was entirely unhelpful.

So at this point, the only difference is that in private sector bank branch, the bank's representative will not yell at you. Everything else is similar now.
 

superczar

Skilled
Or let me rephrase, why do you think the image of PSU banks is so bad among the 20-40 age groups?
2 reasons -
1- Leveraging Technology:
At the start of a career, (20-25 year old) when the NRV of the individual is low, non PSU banks will still go out of their way to acquire them as customers.
Branch level service may not necessarily be any better but better usage of technology makes the need to visit a branch less frequent.

2- Better Segmentation
As said individual progressed through his career and the NRV with the bank increases, PSU banks won’t do anything beyond what they used to do earlier.
Non PSU banks will go out of their way to keep said customer happy - through additional perks , doorstep service etc

PSU banks sometimes do try, but the effort isn’t truly thought through.
An exec had recently sold my wife a SBI top tier card (this is an example of a PSU trying)
On a recent trip, she decided to charge an expensive purchase on said card assuming preferential rates / points/ whatever

However the FX conversion rate applied was their rack rate (at least 4-5% more than spot) and then they charged FX surcharges at 3.5-4% + GST on top of that. (An example of not thinking through when building a premium product)
Net result - This particular purchase on the SBI prime card was at least 8-10% more expensive than what she paid for other purchases
 
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dexterz

Adept
2 reasons -
1- Leveraging Technology:
At the start of a career, (20-25 year old) when the NRV of the individual is low, non PSU banks will still go out of their way to acquire them as customers.
Branch level service may not necessarily be any better but better usage of technology makes the need to visit a branch less frequent.

2- Better Segmentation
As said individual progressed through his career and the NRV with the bank increases, PSU banks won’t do anything beyond what they used to do earlier.
Non PSU banks will go out of their way to keep said customer happy - through additional perks , doorstep service etc
Very true.
PSU Banks like most govt units, you can get the job done if you know people inside. When I got my first job in 2007, the salary account was setup in HDFC. As soon as my first month pay was credited, the HDFC rep reached out and offered me a credit card and sent a person on Sunday to get the documents signed and processed. 15years on, I'm happy with the service provided.
 

blr_p

Skilled
As much as people tend to curse PSU banks, they are the reason why India's economy is still under control and thriving. Otherwise, there would be frauds and cases of funds misappropriation every other day.
PSU banks are backed by the govt so you will never lose your money with them. MAIN point. This I would say is their only saving grace and the reason they are still in business today.
 

6pack

ex-Mod
PSU banks are backed by the govt so you will never lose your money with them. MAIN point. This I would say is their only saving grace and the reason they are still in business today.
Big doubt on that. There is some max amount like 5L per account insured. Rest is gone. Besides they have the bulk of NPAs due to lending to ministers families and friends and not getting anything back in return.
 
My experience (till pre-covid) with PSU banks is that there is too much dependency on going to the branch for getting things done or even sorting things out in case of issues.
Once you reach the branch then you are supposed to go from one counter/table to another to push your case.
Apps are also clunky and not very user friendly.
Plus SBI charges (might be a small amount but still) you for doing online money transfer!
 

kalph09

Disciple
I come from a family of bank employees. My mum is disappointed I don't work at a PSU bank.

PSU bank exists to provide jobs. Go there only for a job, not a business, rest assured. You get medical benefits, LTC, and pensions.
 
RBI declared SBI, ICICI Bank and HDFC Bank as Domestic Systemically Important Banks (D-SIBs) or institutions which are 'too big to fail'.

SBI staff generally gives an unwelcome vibe to many people, so customers prefer others.

Few moments when minister too correct:

 

6pack

ex-Mod
Their attitude will change only when some minister pushes for termination of useless employees. Right now no govt has the courage to do it fearing riots.
 

Mr.J

Skilled
Few moments when minister too correct:

The finance minister, it could be gathered from the purported conversation, was upset that 2.5 lakh bank accounts belonging to tea garden workers in Assam had become non-operational due to a lack of acceptable Know Your Customer (KYC) requirements.
Her government is pushing for these ridiculous KYC requirements.
Why is she upset at people who're doing what they've been told to do? Was the SBI chairman expected to ignore the requirements set by the government?
 

kalph09

Disciple
RBI declared SBI, ICICI Bank and HDFC Bank as Domestic Systemically Important Banks (D-SIBs) or institutions which are 'too big to fail'.
That's like calling Titanic unsinkable.

We all know what happened to Lehman Brothers and Evergrande when they were called too big to fail.
 

Emperor

Skilled
If you get Success opening Account with SBI, then YOU WILL never turn to any PSU Bank. SBI Branch (main branches ONLY) really trying VERY HARD to get their image change & slowly moving to catch pace with Pvt. Banks

Most of PSU Bank users are old age & non-tech person & retired persons, they don't know or care to use online banking and hence they keep visiting bank even for Passbook update (unbale to use automatic passbook print machine out side of branch), just to know balance and some of them are unable to use bank ATM hence visit branch to withdraw money and some time to deposit money (unable to use cash deposit /cheque deposit box/machines etc.), instead of doing online payment etc. they still prefer cheque books.
 

gourav

Adept
That's like calling Titanic unsinkable.

We all know what happened to Lehman Brothers and Evergrande when they were called too big to fail.
In RBI's lingo, too big to fail doesn't mean it can't fail, it means it can't be allowed to fail.

Meaning the government and RBI will rescue them if they are going to fail.

Also, Lehman Brothers type of failure can't happen today in India. Sure, other types can, but it's highly unlikely.
 
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