Salaried Indians prefer PSU banks For deposits, loans & banking services

Global meltdown has motivated 60% of salaried employees to go in for government owned companies for safer investment purposes as these feel such institutions more credible and secure while 20% of them still prefer private banks for the same and remaining 20% continue to show their apathy to either of the two, according to findings of The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

The findings of the ASSOCHAM contained at a Study which it brought out on `Growth and Emergence of Public and Private Sector Banks in India : Customer’s and Investor’s Perceptions’, in which over 250 salaried employees, businessmen, lawyers have been interviewed.

It reveals that 50% of salaried employees in all segments prefer Private Sector for mutual fund while only 20% opt for Public Sector Banks for the same. 20% are indifferent to either of the two sectors for parking their funds in mutual funds while 10% do not avail this service. 40% of employees prefer public sector banks for purposes of investment in bonds & securities as compared to 30% who prefer the private banks.

The banking services provided by the public sector banks are preferred by 60% of the salaried employees, while only 20% go in for private banks for security purposes and remaining 20% are indifferent to either of the two categories. This preference for public sector banks (PSBs) for investment is mainly due to the fact that as a general perception, the employees find them reliable and secure especially at times when global down is catching up.

The ASSOCHAM Paper said that for bonds and securities, businessmen preference is the other way round i.e. 80% preferring PSBs. For Demat services 40% prefer private banks while 20% are indifferent. For opening demand deposit accounts 40% of the businessmen prefer PSBs while the same percentage prefer the private banks for termed deposit. For fixed deposits 60% of them prefer PSBs, 20% prefer private banks while 20% are indifferent between the two types.

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