Private Banks Vs Nationalised Banks

In India, Retail banking is very much successful than any other developing countries. Take some private banks for example : ICICI, IDBI, HDFC, Kotak Mahindra etc are not just a Retail banking institutions started. They were started for some different purpose or to render financial services for Home Loan, Consumer finance, Corporate Lending etc.,and in years they have started Retail banking. Not only Private Banks, Multi-National banks like HSBC, CITI Bank, Standard Chartered, ABN Amro etc., are also there in the list, and they are doing a very good business over here. Then we have the Nationalised Banks like State Bank of India, Indian Bank, Punjab National Bank, etc are there in the list, and these Nationalised Banks only have a large customer base.

All the Nationalised banks are operating in the rural areas and the Cities. Whereas very few private banks like Karur Vysha Bank (KVB), Karnataka Bank, Lakshmi Vilas Bank (LVB), operate in the rural areas.

Many other private banks like IndusInd, ICICI, HDFC have started to show their presence in the rural areas. We know that in rural areas its tough to do business since those people won't be looking for all these hi-fi services like ATM, internet banking, Phone Banking, mobile banking etc., So its very difficult for them to survive there.

Ok, Lets come to the other side of these Private & Multi-National Banks. Centralised Air Conditioned premises, with two or three
ATM on the side of banks, security personnel to open the door, Padded Sofa / seats, Mineral Water case mounted on a
water cooler, good looking girls in the counters talking in a *sweet low pitch voice*, very clean walls with colorful pamplets,
couple of cameras mounted on all the walls, a thick glass slab / half table to fillup the challans, etc.,
And now how do they manage to provide all these things ? and why Nationalised Banks are not ?

High Direct & Hidden Charges levied are the reason. When a cheque(belongs to a bank in some other Location) is deposited for collection, these Private & Multi-National Banks will charge not less than Rs. 50. And in times it exceeds Rs. 100. In Nationalised Banks the charge will be Rs. 15 - 25.

And how about minimum balance that must be maintained for a SB (Savings Bank) Account ?? In Private Banks like ICICI, IDBI, Kotak etc, its not less than Rs.2000 to Rs. 5000. And the MultiNational banks charges are from Rs.5000 to Rs.10000. For this we will be getting a good colored Cheque book with our name printed on the place where one has to sign. Whereas in Nationalised bank, including SBI, Indian Bank, Andhra Bank its Rs.500 to Rs.1000.

And what will happen if you din't maintain these minimum balance ?? Minimum Rs. 250 to Rs. 1000 these private & mumtinational banks charge you. Whereas, Nationalised bank will not charge more than Rs. 50 and that too rarely. And onething I found today, which made me to write this article is Demand Draft(DD) charges.

I have to take a DD (payable @ Bombay) for Rs. 100 for my brother who is busy in his exam. It was a urgent one, and I have forgotten in the Morning. Since its a weekend(saturday), most banks were closed by 1pm. So I went to a HDFC Bank which is near to my house, to take the DD. I know that the charges will be high, but I didn't bother since this is important, so I filled up the form and went to the counter, and I gave the form/challan & two Hundred Rupees note to a *good looking girl* in the counter. She was looking good, and so I was looking her,

She looked at me and smiled and said, "Sir, if you know the charges, you won't be taking the DD in our bank".
I replied "Yes, I know that it will be quiet high when compared to Govt. Banks, but its ok. ". She again smiled. 
Then I question her, "How much is it ??"
She said "Rs. 175 sir"
Then I said, "Its ok, I have given you Rs. 200, so please..".
She again smiled and said "Sir, Rs. 175 is the charge, so its 100 + 175, totally Rs. 275"

I was shocked to hear that. To take a DD for Rs 100, I have to pay nearly double the amount as charges!!!

Then I went to a Indian Overseas Bank(IOB), which was open @ 3pm and its very near to my hosue. They charged just Rs. 17 which  is not even 10% of HDFC 's. Even this IOB branch was having good AC. But see the difference ???? 

May be the lady in the counter in IOB is of my Mum's age, then the building was a old one, no colorful walls, I couildn't find any water cooler, other male workers were missing tie, etc. These could be the reason rite!!!

So I want to conclude by saying, Private Banks do Business, and Government Banks are doing Service.

Mostly I will be writing another part.......