Banks merger with SBI worries customers

Tribune News Service

Ludhiana, April 28

Many customers expressed their concern over closure of branches and shifting of the staff after unification of all banks under one group during a town hall meeting of the State Bank of India (SBI) organised at Model Town Club here today. The town hall meeting, which is held quarterly, was organised for the first time after unification of various banks with the SBI.

People asked the SBI staff if they would continue to get same services as they were getting over the years after the merger of other banks with the SBI.

Meanwhile, SBI officials assured them that they would get same customer services, but some of their branches would have to be closed as there was more than one bank in some particular areas.

“If there are branches of the State Bank of Patiala and the State Bank of Jaipur in the same area then one will be closed as all have come under umbrella of the State Bank of India. There obviously cannot be two SBI branches in the same locality,” an official said.

But, people would get better customer-service with unification of the bank, he added. Many members of the trade and industry also expressed displeasure over rates of interest on loans given by the SBI. “While other private banks have started offering lower rates hovering around 8 per cent, the SBI still continues to charge over 11 per cent rate of interest, which is unfair. Instead, being a public sector bank the SBI should offer lower rate of interest,” said Satnam Singh, an industrialist.

When asked, one official of the SBI later said, “Private banks often have hidden costs, but the structure of the SBI in terms of loans and all its products is transparent.”

Some customers said the staff at several branches did not accept cheques of other banks. They said, “After the merger, the staff must ensure that customers don’t have to face such inconvenience in the bank.” Others present on the occasion raised the parking issue.

AGM Vinod Kumar Singla assured customers that services would continue to get better in the coming days.

“We have also apprised customers of all products, including mutual funds, e-wallets etc offered by the bank,” said KL Sethi, deputy manager, SBI, Fountain Chowk branch.

Officials said they had noted down grievances of customers and would resolve them wherever it was possible.