Banking on an image makeover

Your neighbourhood nationalised bank has turned over a new leaf, and has actually become friendlier and customer-savvy. SANTANU GHOSH repo...

Your neighbourhood nationalised bank has turned over a new leaf, and has actually become friendlier and customer-savvy. SANTANU GHOSH reports.

In some leading PSU banks like Punjab National Bank PNB, borrowers of Rs five crore and above can access their accounts on the internet and also avail of telebanking facilities.

State Bank of India SBI has set up specialised corporate branches where corporate clients with annual sale of over Rs 100 crore are catered to.

Special boutique branches provide one stop banking for retail customers in SBI some of these branches would even provide insurance products in the future.

Gone are the days when a troubled customer would call up any State Bank of India branch and be snubbed by a rude official. Today, if you call up the SBI Helpline 1600114545, all the information you need would be at your fingertips. To soothe your nerves, you can even listen to some soft background music on the call. And, the helpline is toll free.

Things have changed and fortunately, for the better. Over the last few years, chasing good customers, efficent decision making, personal banking, corporate banking, credit dispersal and efficient risk management are some of the steps taken by PSU banks like SBI, PNB, Bank of Baroda BoB, Canara Bank and Union Bank of India UBI. The banks have realised the significance of ambience and upgradation of technology to keep up with competition from private sector and foreign banks.

Relationship banking one employee per customer has also been adopted by leading PSU banks. SBIacirc;euro;trade;s personal banking branches also known as boutique branches cater to customers on a one-to-one basis. Further, it is a one-stop shop for retail customers as these bran-ches provide a host of services, including a slew of options on personal loans.

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In fact, SBI recently decided to provide insurance products in some of its personal banking branches. These specialised bran-ches are equipped with e-mail and can match any foreign bank in ambience. However, you need to pay a price for availing of such services. SBI has the criteria of a fixed minimum balance in accounts for such branches Rs 10,000.

From the late acirc;euro;trade;90s, SBI, PNB, BoB and other leading PSU banks started reaching their customers at their doorsteps. At present in PNB, borrowers of Rs 5 crore and above can access their account through the Internet and can also avail of telebanking. Cash management has also been evolved to ensure faster clearing of cheques. Larger volume of retail business has assumed importance for the PSU banks.

Not to be left behind, UBI has set up a wide area network WAN in 350 branches across the country. This ensures quick exchange of data across branches and leads to faster clearing of outstation cheques.

If you are not only a retail customer, but also a corporate client, then thereacirc;euro;trade;s more in the offing from these banks. Both SBI and PNB have set up special corporate branches. For PNB, any corporate transaction of Rs 25 crore and above is undertaken by these special corporate branches. In SBI, corporates whose standard assets are more than Rs 10 crore and whose annual sale is more than Rs 100 crore, are also serviced by these branches.

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According to SBI officials, transactions in these corporate branches are faster and the mandatory clearence wrapped up in a day. While SBI has five corporate branches, PNB has set a target of eight corporate branches by March 2001 at present it has one branch operating in Delhi. The average transaction in PNBacirc;euro;trade;s corporate branch is around Rs 30 crore per day.

However, if you are not such a big corporate clients and your transaction is to the tune of Rs 25 lakh and above, there is no need to be dismayed. In SBI, you will be dealt in another special branch called the Industrial Finance branch. Packed with specialised personnel, Industrial Finance branches are headed by Deputy General Managers. SBI has 14 such branches all over the country. Seven-day banking is another concept which has been taken up by the PSU banks. While SBI has taken the lead and started seven-day banking in around 14 branches in Delhi, other banks are following the big brotheracirc;euro;trade;s example.

However, the officials in PSU banks feel that much is still left to be done. In fact, according to a survey undertaken by The Financial Express and BRIS last year see graph, Corporation Bank is the only PSU bank which figures among the top 10 banks on operational parameters. None of the PSU banks figures in the list of top 10 banks on profitability and productivity. However, in terms of financial parameters, all the leading PSU banks appear in the top 10. However, the problem for these banks remains the Government, or more precisely, the Finance Ministry. The banking division and apex bank often contradict each other in their functioning; hence, the time has come for a super regulator for the financial sector, officials in PSU banks opined. Though the Government has decided in principle to reduce its stake to 33 per cent in PSU banks, this would hardly provide any solace. Top officials in PSU banks agree strongly on one point Government interference in banks has to go.