A banker's experience with Customers
Carry Customers with you
There are two principles to handle an aggrieved customer. Principle One - Customer is the King and the King is always right. Principle Two - If the customer is not reasonable, please follow principle one! In my 37 years of service as a banker, with 30 years in the front facing the customers, I always found it easier to handle even difficult customers, if I could empathise with him or make him empathise with me. I will narrate some instances
1. State Bank of Travancore (SBT) opened a double shift branch in Besant Nagar Chennai in 1981. The premises was situated in the road facing the beach. Within 500 metres, there was a branch of State Bank of India (SBI) inside the residential area. Getting customers into our books was an uphill task. It was quite common for all of us to stand outside the gate of the premises, so that any walkers to the beach can be met for opening accounts. One day around 6 pm, it was raining heavily and all the staff were indoors. One person came inside the campus but did not step into the branch. I identified that the gentleman was a famous economist, who used to write regularly in "The Hindu". I went and requested him to come inside and sit in the visitors' chair till the rain stopped. He curtly told me that the moment he comes inside, there will be a demand for opening a bank account. I promised that we will not disturb him to open an account. Once he was inside, as we all were having our tea at that time, tea was offered to him as well. During the informal chat, I told him that I had read his articles in "The Hindu". As is usual of a street smart banker, I put up a proposal for opening an account, if he felt happy with us. Immediately he stood up and started leaving saying that precisely for this reason, he wanted to stand outside. I expressed my regrets for violating the promise and told that the mistake will never be repeated. Around 7 pm, the rain stopped and he walked away. After two days, I met him in the street and exchanged courteous "Hello Sir, How are you" etc. One week later, the economist came to the branch and stood before my counter. "You will not ask me to open an account". I said "Sir, I will keep up my promise and will not ask". He smiled and gave a cheque for Rs.10 lacs for opening an account. He was the first HNI customer for us and the branch was immensely benefitted through his connections, as some of his friends also opened accounts with us in the subsequent period.
2. I was working as Assistant Manager in SBT Santhi Nagar branch,Thiruvananthapuram in 1987. I was deputed to Tirumala Branch for three days as the branch manager (single officer branch) fell sick. The branch was catering to military personnel mainly. Since it was the first week of the month, the branch was fairly crowded. Withdrawal slips, posted in the counters, were brought to my cabin (BM cabin) at frequent intervals. One withdrawal was for Rs.50,000. It was a big amount at that time and I requested for the account opening form of that particular account for signature verification. Within a minute, I could see a person shouting at the peak of his voice. Whatever little I understood, he wanted to close his account. The counter clerk came rushing inside saying that the he is the person who gave the withdrawal for Rs.50,000 and he felt hurt that I wanted to verify his signature with the account opening form. I understood the situation, went outside and requested the gentle man to come inside. He obliged but started talking again in a louder voice. I interrupted him and said "Sir, my apologies. But I would like you to hear me for a minute after you complete your talk". My request slowed him down. He gave details of his deposits with the branch and said he was pained that his signature had to be verified before he could get the cash. I explained to him that I was new to the branch (on deputation) and the bank's procedure (at that time) that the ledger will be carried along withdrawals if the amount to be withdrawn was for larger amounts. When the withdrawals were for very large amounts, in order the ensure that no fraud is attempted on the depositor, the account opening form is normally called for to validate genuineness of signature. And this is in no way to doubt the customer but only to safeguard his interest. My sincere explanation appeared to have calmed him down and he spent 30 minutes with me narrating his war experiences in the frontiers. On the third day (last date of my deputation), he came and gave me a cheque for Rs.1 lac to be placed as a deposit for 10 years.
3. I was Deputy Manager (Personal Banking) in SBT Mount Raod , Chennai in 1992. We were tallying the savings account ledgers for the month of June. I found that one account was credited with Rs.10,000 twice on the same day, but as per subsidiary ledger, only one credit should have been given. But the balance in the account was not sufficient, if the wrong credit was reversed that day. I called the customer over phone and explained the position. He came the next day and remitted the short fall. At the end of the month, I debited his account with simple interest for the number of days the account would have been in debit had correct balance was carried out. This was to comply with bank's procedure as well. When the customer was informed of this, he was agitated. He told me that the mistake of crediting his account twice was that of the bank and he paid back the amount immediately. My Chief Manager also felt that he raised valid objections. I told the customer. "Sir, we are thankful to you that you responded immediately to our request to remit the shortfall in the account. We also agree that it was due to the mistake of the bank, the account was credited with the same amount twice. But only thing I would appeal to you is to please consider, irrespective of whoever is responsible for the mistake, is it not fair to expect that the person who benefitted from the transaction should pay for it". The customer smiled and paid the interest claim. He became a valued customer, in terms of deposits held, in course of time.
4. I was branch manager of SBT Tiruverumbur Branch in 1993. One day, around 1'O clock in the afternoon, a customer approached me for issue of a Solvency Certificate (SC) which will enable his son to pursue his further studies abroad. He requested for issue of the certificate the same day, as the education course starts in less than a month. I verified the balances in his account and promised him to deliver the certificate by 3 pm. I had my lunch and started preparing the SC in my desktop (Those days the standalone desktop was available only in the BM's cabin) . The customer was talking to me happily about his school and college days. At that time, I got a call from my brother (in Chennai) that my sister expired suddenly. I got the shock of my life. My parents were with me in Trichy and I should leave immediately to Chennai along with them to attend to the funeral rites of my sister. The customer sitting opposite to me did not know what was the message conveyed to me over phone. I quietly typed the SC and handed over to him. I requested him to verify whether the SC satisfies his requirements. Having said that, I rang up my Controller and requested for two days' leave. My controller asked me the reason and I replied. "My sister expired in Chennai and I had to take my parents to chennai". When I finished talking over phone, I could see tears rolling out of the eyes of the customer who was perusing the SC. He remarked. "I do not know how to console you. You received a message about the demise of your sister. But you continued your duty and issued me the SC and after finishing that made a phone call seeking permission to go on leave. The maturity shown by you is unbelievable. May God stand with you at this hour of grief". I told him. "It is a great loss to me, of course. But that cannot be reversed. If I continue with the job already started for another ten minutes, at least I will be able to deliver the SC requested by you. So I thought I will fulfil your requirements first." I did not know his deposit connections with the branch now, but that to my mind was the best decision I took in my career.
5. I was a branch manager of SBT Koorkencherry in 2000. My predecessor was on sick bed for more than a year and the field officer(advances officer) was hospitalised due to leg injury for more than three months. So I had to peruse the advances portfolio and the connected documents on my own without any brief. I found quite a number of small advances had no remittances for the last three to four years. In Kerala, Revenue Recovery Proceedings (RR) is a popular measure to make recoveries in small accounts. Before filing the stressed accounts for RR, I felt I should conduct a recovery camp. Me along with a few award staff(very cooperative) visited the villages concerned and distributed our pamphlets indicating that a recovery camp will be held in the community hall in one of the villages. The common response received was that the borrowers were willing to make one time settlement if the sanction is conveyed on the same day. It was gathered in one of the previous recovery camp conducted by another bank, though borrowers paid part dues, one time settlement was not effected, forcing the borrowers to pay the entire dues. I explained this to my Controller and requested his presence in the recovery camp, as he only had the powers to convey one time settlement on the spot. My Controller put one condition " I will come to the camp. But if the attendance is thin say less than 25 , I will leave the camp in half an hour". Branch Staff agreed. The Camp commenced at 10 am and the Controller was there at 10.15 am. But the borrowers started arriving from 9.30 am itself. When the Controller arrived, more than 50 persons were in the hall for settlement. On that day, we closed around 200 cases under one time settlement. Incidentally, the Controller had to to leave by 11.30 am for some other function. But he told me that I can use his discretion and communicate one time settlement on the spot provided I am in full compliance with bank's extant instructions on the subject. That confidence helped me to a greater extent in bringing down the number of NPA accounts to negligible levels.
6. I was Chief Manager of SBT Tirupur Branch during 2002-05. We sanctioned a term loan of Rs.8.5 cr. to one of the most reputed textile mills, which enjoyed comprehensive credit facilities with another bank. The loan was canvassed on assurances that our interest rate will match the best rate offered in the town and that our processing time will be much faster. Thanks to our Credit Department, HO, TVM we could fulfil both the promises. The loan documents had to be executed but when our field officer went to their office, he was informed that the senior partner is not happy with signing the bank's documents. No one could understand the reason. I sought an appointment with him the next day and he readily gave. When I met him, he told this much "I have never seen a loan document running for hundreds of pages in any other bank. Please bring a one page document. I will sign. Otherwise, I will not avail". I explained that the documents were drafted by the law department taking care of the laws in operation and the experience arising out of different cases filed in the court. I added that even the top executive of the bank might not have the power to waive signing the document. I completed my arguments by saying "The meaning of this document is only this: As long as you pay back at agreed intervals and at agreed interest rates, this document is of no use to the bank. They come to life only in case of non-payment" He immediately said "I take loan only for paying back. I need not bother". And the loan documents were signed the next day and I understand the borrower promptly repaid the dues well before due date.
There are several other instances, which are equally interesting. If you look through each incident described above, the customer stand with you if your acts convinces him that you tell the truth and that his interests are protected.
V.Viswanathan
- Balances above Rs.1 lac in SB accounts fetch less interest rate for the customer. Even upto Rs.1 lac, the interest rate is low only. With the help of IT staff, I will take a list of customers who maintain an average balance beyond a particular limit. I will contact them personally and explain to them the advantages of converting the account as a sweep account, under which balances beyond a balance will be earning fixed deposit interest and the facility to withdraw any amount (without penalty) remaining intact.
- Suraksha Bhima Yojana (Accident Insurance) and Jeevan Jyothi Yojana (Life Insurance) coverage still remains miniscule in comparison to the number of savings account holders every bank has today. I will request the bank to display prominent boards in the banking hall and organise customer meets once a month, where spreading awareness about these insurance covers will be one of the agenda item. Plus on my part, I will interact with the visiting customers on a day to day basis, the advantages of these insurance covers coming at an affordable cost. I will explain them even by opening a recurring deposits of Rs.50 a month, both these policies can be renewed automatically every year.
- The usual complaint with a housing loan borrower is that changes in interest rates are not communicated to him. Only when he make a reference, the bank asks him to submit a letter of request with a small fee to carry out interest rate changes for him. This is unfair and the customer feels aggrieved that the bank is not taking care of his interest. As and when home loan interest rates are changed by the bank, I will help the branch manager to send a communication to all home loan borrowers, eligible to use the option for change in interest rates, on the revision in the interest rates.
- Even today, success stories of deposit account holders actively canvassed for either life or health insurance or mutual fund products is quite limited. The deposit customers would like to cover themselves as well as maximise their overall returns. My concentration will be to cross sell the products to persons, who will be taking a decision independently without any obligation to do so.
- I will take the list of auto renewed fixed deposit accounts and advise the customers concerned that his/her deposit is renewed automatically and the current interest rates governing fixed deposits.
Sir you have narrated wonderful experiences. In SBH also one board was displayed the quote Mahatma Gandhi in all branches stating that customer in branch is purpose and not an hindrance. Treat him as God and serve him. Truly you have acted accordingly. On account of people like you and the entire workforce in the industry Public Sector Banks have grown and were able to serve the people of this country there by are responsible for green and white revolution in this country. Hats off to you Boss. My salutes to you.
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