Banking: the only profitable business?
Of course the BFSI space is booming and there are all types of stories about it. However the mutual fund industry, the life insurance industry and the brokerage industry are not as profitable as the pundits tell us.
The profitability of the banking business is visible to all. Even the Psu banks make money – and handsome money. Look at the price at which SBI’s shares are selling. Look at the fact that even I C U case banks like Indian bank come back and make profits.
This is also because they can literally force you to do whatever they want. For e.g. I have a SB a/c with a private sector bank. They claim to have a brokerage arm -but its service was pathetic when I last used it.
However when I try to give the delivery slip favoring my broker the kind of non finance barriers amuses me. Let me enumerate:
1. Sir we have sent it to your house address…have you received it?
Ans: No. I had specifically asked for it at my office address….
Sorry Sir…you will again have to give a DECLARATION that it is lost.
(you can say what the….) but silence is golden.
2. Sir you have an old book which you have not used…
Ans: Sorry…but I have no track..
3. Sir our system is showing we had issued a book to you….
Me: I want a book with 20 leaves at least.
Sir: We only give a book with 5 leaves..because you have an account with our brokerage arm
Me: Ok can you give me 4 books?
She: No sir,only 2 books at a time..and sir your wife also has to sign the requisition slip – even on the correction. Sorry sir, process….
She: Sir why don’t you open a brokerage account with us…
Me: Your representative has not called me…for the last 4 years I am waiting..this in spite of speaking to the big bosses at your bank and as well as the big bosses of the brokerage firm…
She: Sir I will make sure he calls on you today…
Me: will you please take delivery of these 1500 shares of Mahindra Satyam and 1000 shares of Mahindra Hol Resorts?
She: Sir you do not have Mahindra Satyam….
Me: can you please check thru’ the Isin number?
She: Sir you have Satyam Computer Systems…not Mahindra Systems
She: Of course sir. …Sir this correction has to be signed by both of you…
O M G…here we go again…
I call my broker and say my prayers and leave…
how o how can I find a broker only account? I have lost hope…
Did anybody ask..why Indians do not invest?
Oh I did a post yesterday….
Sucheta….we will need 100o clones of yours or a Ralph Nader to help us……..preferably both
Zarir
After reading your post, I must share my experience with one of the very respectable private bank. I am an NRI and had asked for statement of account of year 2007 at their representative office here in Dubai.(This is required by the AMC to verify that funds have been remitted through NRE account). I was promised by my bank that you will receive the statement within 2 working days on my registered E-mail. It is been one week and no sign of it. I have been calling their call center and no luck there too. The usual answer of” I will check and come back to you”. In this world of electronic mail, where information/documents travel by the click of a mouse, I dont understand why it takes so long for them to do some simple tasks.
Regards,
Zarir
Viswanath
Is there an email id on which I can write to you? I have a query on a matter not related to this topic.
aman
i m sure u r talking about the big H bank. i have faced exact same instances, with transfer slips, with cheque books, and even for securities account with their brokerage sister firm. had similar talks with the bank, with the famous sharmaji too of the firm, and still after 9 months the account is not open. in 9 months a new life can come into this world, but sadly no h sec account.
may as they say its time to move on, but then trust is something they behold.
Muthu
Mr.Subra – Looks like your earlier posting?