The Reality of Public Sector Banks in India – Review of horrifying service quality of State Bank of India

Initially let me tell people that i am an engineering degree holder (B. Tech- Mechanical). Its a 4 year degree way (2001-2005). I hail from an upper middle class family in India. As soon as i completed my 4 year engineering degree way in 2005, all batchmates started sitting for placement sessions. I skipped the placement sessions and chose that i would go for post graduate studies additional.

I chose to do a 2 year MBA degree. Now, this meant additional cost burden on the family. So i chose to take an education loan instead. I started scanning for potential education loan lending banks but i found out that at that point only Public Sector Banks were lending such loans to students for higher studies in India & Abroad.

Me along with my father went to the main branch of State Bank of India in Lajpat Nagar, New Delhi, India. The loan officer questioned us all sorts of questions related to why i was preparation to do the way; what was my father’s income; fixed assets that i can keep as gaurantee for the loan, etc. Then he took out a long form with all sorts of details to be filled up in it. He questioned me to fill that initially. That form had to be additional filled up in 3 sets with signatures on all the pages.

I questioned him that sir if i had something to gaurantee the loan then probably i would have not vital the loan itself which was for an amount of Rs. 3.80 lakhs. But he refused to budge and gave us all policy explanations to justify.

My father had been holding a salary account in the same bank for approx. 20 years but it meant no help to us to aim the education loan. But after a call from the bank branch manager, the loan officer agreed to authorize the loan.

Both, my father and i were glad to know that finally we had managed to take the loan from the bank. But never did we know that this was just the beginning of a horrifying customer experience we were about to hear in later dates to come.

In all i had 4 semesters in my MBA way and i had to hear 4 cheques from the bank for the education loan.

When i initially went to hear my initially cheque for the 1st semester payment, i was questioned to write a Full Length Request Letter to the Manager to get the cheque. There were no pre-defined request forms for the education loan cheque installments. I did as ORDERED by the bank officials. When i went with the letter to the bank official he questioned me for my father’s signature who was my gaurantor for the loan. I said but during the loan application time my father had signed to authorise me as the signatory for all transactions. But he didnt pay heed and questioned me to come tommorow. The next day again i went to get the cheque with a request letter having both signatures. The bank official questioned me to wait till he calls me. When he called me finally after an hour he had a look on the letter. Then he questioned me to get a photostat of the letter. Then i ran further than to look for a shop for a photostat. Finally i submitted the same letter. I was surprised to hear that the cheque will be given after 3 days. My last day of submission of my semester fees had crossed. I requested the bank official to deliberate the situation but they made a mockery of me only. Finally i came back after 3 days and collected the cheque.

The next time i went to assemble the 2nd installment for the 2nd semester fees in the SBI, Lajpat Nagar branch i was told that the loan operations of the branch had shifted to connaught place and i should go there. This was not honest on part of the bank as the other branch was far off from my place of examine and residence, both. But i had no option but to accept my fate.

As i went to the Headoffice of State Bank Of India in connaught place, new delhi , i was amazed by the huge building they have constructed at that place. This construction was even larger than many MNC bank premises. I thought in my heart that finally my woes related to the education loan will now be over as this is the headoffice of SBI and things will be in order at this place.

I was told the Education loan deptt. was on the 8th floor of the building. I went straight up through the lift to assemble my 2nd installment. I went up and saw innumerable cabin like structures for innumerable loan officers with nameplates on them. I questioned the closest one who could help me out. He pointed towards the other. I reached the other one. I greeted him. But the loan officer on duty ignored me as if i was here to waste his precious time. I dont know what his work was other than to attend loan applicants and their queries. Finally after 15 minutes of standing i gathered courage to interrupt him again. He positioned his eyeglasses downwards to have a look on me up to down. Then i forwarded my cheque relief application to him, he then additional forwarded me to another loan officer. I was pissed to the core.

I then went to the other loan officer. As i entered his part of the table, where no one was sitting he shouted at me, sayin how i could come near his table without he calling me inside. He called his “Chapraasi” and questioned him to show me the waiting area. I thought this guy didnt even question me for what work i was there and whether he had the solution to it or if there was someone else who would be doing the job. I had no option but to wait for another half hour in the waiting area not knowing even this that whether the one for whom i was waiting had any solution to my problem/request. Finally the officer called me after repeated requests to the chapraasi. I gave him the request letter for the 2nd installment of the loan. He looked at it and said i should go the SBI, Lajpat Nagar Branch to get the cheque as that was my loan issuing branch. I told him that they only had informed me and sent me here saying that the loan operations had been transferred to this branch. The officer was unaware of any such development. He questioned his colleague if anything like this had happened, he said question some one from some other deptt. on phone. He called up some one on phone and questioned for my loan file. He sked me to wait for another 1 hour for the file to turn up from downstairs.

After an hour the file arrived and i was told come after the lunch break of 1 hour. I waited for the lunch to get over. When i came back to the office i saw the officers were still having lunch, it took them another 1/2 hour to resume work. I requested the chapraasi to get the word to his “baabu” officer to look into my file. Finally, he did and questioned me for the request application which i had brought along. But now he said that i should submit the marksheets for my 1st and 2nd sem before taking the installment cheque. He said come tommorow and take the application along with you.

The next day i returned witht he marksheets but again i had to wait. I guess that is the PROTOCOL of work out there in SBI which i was unaware of. Just before lunch the officer called me and took the cheque request application along with the marksheets. He questioned me to come tommorow to assemble the cheque. Had no option went back, came to assemble the cheque the next day. BUt just to handover the cheque they made me wait till lunch was over. I felt like i had won a WAR on having the cheque in my hand.

Don’t question how i got my 3rd and 4th installments coz its a long tale but quite similar to the initially two experiences but just that it gets worst every other time. I dredge up when i won the last battle of getting the 4th and closing installment from SBI, Connaught Place. The Baabu/officer handing me over the cheque thought this would be the last time this chap would be running around here , so he questioned me for my phone no. and told me that he would call me to get his son a reference for a job and that i should help him. No prize for Guessing how i felt at that point. Thats the height of Shamelessness.

Finally i am working in a $ 1 billion revenue MNC companionship in Gurgaon after my MBA and repaying my education loan. But you will be amazed to know that my horrifying experience has still not finished as every financial year i have to go to SBI to get a loan A/c statement printed. You must be thinking how terrible can that be. Well dont underestimate the SBI Professionals, friends.

This year March 2009 i went to the Lajpat Nagar SBI Branch for a simple statement of education loan a/c. I usually dont go myself now as i know how these people are. I send some domestic help to get that statement whenever i have to, coz i even despise going inside these SBI branches. But since it was the last day to file the Income Tax return Proof Documents in my companionship , so i had to forcibly take the challenge of getting a statement from the SBI, Lajpat Nagar Branch as you can get a statement from SBI only from the place where you were issued a loan.

As i entered the branch i found there were nameplates but no mention of education loan section. I had a look around and saw one officer who was looking a bit educated. I went near his cabin. He was amplification something to one lady. I stood in front of his desk. I did not speak till he finished speaking to the lady. Excellent 1/2 hour chat that was. Finally he noticed me standing right in front of him. Fantastic Discovery!!! i questioned where can i get an education loan statement printed from, he without speaking pointed in opposite direction towards a cabin. I coudnt make out where he was pointing, but he refused to say anything other than “GO THERE” with a face of frustation. I then entered a larger looking cabin to find an party sitting there. looked like some grown-up official with a computer. I questioned about the statement and he said go to the room next to his cabin. I entered the other room. People were getting out different statements from that place. All the customers were standing in a queue, so even i stood at the back. After 1/2 hour my turn came and i handed over my staement request letter to the officer. He said the person who takes out education loan statements is on leave and that i should come tommorow.

I said to him that the banks work should not get affected if a person is absent on a single day, somebody else may handle the work for the timebeing. But he refused to work on it.

I went back to the larger cabin. But i found the official was himself coming out of the cabin leavin for a walk. I questioned him that i vital a simple statement for my education loan so as to file my ITR return and it was vital. He said go and keep your application on my table and come tommorow. No receipt of application was to be provided for the application submission. Casual Attitude at its Extreme in service sector ! Kudos SBI !