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

For credit cards 60% of the businessmen prefer PSBs while for debit cards 40% prefer private banks, 20% prefer PSBs and 20% being indifferent. For ATMs 60% of the businessmen prefer private banks, while for phone and internet banking all the businessmen have opted for private banks because they are highly professional, quick and efficient and have good infrastructure and good appearances.

For loan facility, the majority of businessmen have preferred public sector banks as they found them much more reliable and secure, barring for home loans for which they prefer private banks. This is because private banks are to messy with tremendous growth, difficult to comprehend their offers, charge high rates of interests and are very clever with customers.

Most of the businessmen prefer Indian Overseas Bank, Corporation Bank, PNB, SBI & Syndicate bank in the PSBs while in the private banks they prefer HDFC, Citibank, ICICI, Kotak Mahindra, etc. just like salaried employees and professionals the businessmen have also ranked private banks higher than PSBs giving them an average of 6 on 10 to PSBs as compared to 7 on 10 to private banks.

For all kinds of loans, majority of the employees surveyed prefer public sector banks, because they perceive that the rates of interest in PSBs are lower and more reliable than the private banks. Moreover, private banks are profit oriented, have high rates of interests, and follow persuasive banking approach that becomes irritating. It is also perceived that PSBs are not profit oriented and are therefore more focused on building confidence among its customers. For investments in mutual funds and bonds, a significant outcome is revealed, that is, all three categories are convergent on their preference; it is private banks for mutual funds and for bonds it is the PSBs.

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(This is press release of Assocham, January 13, 2009)



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