Banker's Bank is still not Customer's Bank

Recently, one of my close friends bought a new car. Part of the amount was financed  He chose a public sector bank, one for the tenure and second for the slightly low rate of interest. He applies for the loan, completes all the required formalities...cut to third day, he gets a call from one of the bank officials asking him to pay Rs. 127/- (a little more than $2) pending amount in a credit card issued by another bank for his loan to be approved. For a loan amount of Rs. 4 lacs, how could pending payment of such a small amount be significant to determine the credit-worthiness of the borrower? Anyways, the instructions did not stop at this...the bank official further directed my friend to physically visit the credit card issuing bank, pay the amount, take a receipt and present the same to them for sanctioning of the loan. My friend told that his bank did not have retail branches and that he would pay the amount online and send them a transaction record. The bank official asked my friend to talk to some madam, but then he found out that madame had already made a move, he agreed to my friend's offer with reluctance. My friend immediately makes the payment.

Cut to day four...the bank official calls my friend again. This time to tell him that he would have visit the PSU branch to sign the loan agreement at 3 p.m. for the loan to be released. My friend requests the bank official that considering the distance of the branch and traffic of Bangalore, and further considering that it was a working day, would it be possible for the bank to send an executive to his office or home or if the time of appointment could be shifted to a mutually convenient time. The bank official summarily turned-down both the requests, much to the irritation of my friend. For those who live and commute in cities like Bangalore, they know that accommodating such rigid appointments from service providers is not easy at all. Any other private bank would have gladly sent one of its executives without much ado. But not this PSU bank! My friend got so annoyed that he called me and expressed his desire to cancel his loan application and instead apply the same from a private bank. The higher interest, he thought, would be better to pay! But I pacified him and told him now that now that he had come this far, to just go through the pain and finish the process. My friend does as directed by the bank huffing and puffing throughout the day.

In between two verification  all the paper work happen, the loan is finally released in a week's time. Not bad! for a PSU bank. Cut to next week, suddenly I get a call on my mobile...some gentleman on the other side calling me by my friend's name and before I could react, charging me of not taking his call despite the fact that my phone has been ringing. I politely ask the gentleman on the other side of the phone about his identity. He turns-out to be a loan verification agent. He has been entrusted with verification of the loan borrower. But hasn't that been already done? Anyways I told him that I was not the borrower and was his friend. He told me that when the first number (my friend's number) did not respond he called on the alternate number that I think my friend had given my number. I told him that I would inform my friend to call him. I tried to call my friend on his mobile, the phone actually kept ringing with no answer. I tried his office number and could get him online. It turned out that his mobile was out of order. That explains why the verification agent could not get him. Anyways I gave him the message. My friend was taken-aback a little, considering this was the third time verification was happening and then the loan had already been disbursed by the bank. Then what is the use of this verification? Putting all this logic aside, he promptly called the agent. Later in the evening when my friend called me, he told me that the agent came and his visit was another formality. While leaving, the bank agent asked my friend to pay for his fuel expenses  citing that he had to visit repeatedly. When my friend refused the demand firmly, the agent left, not very happy though.

When will the PSU banks learn how to engage their customers? In this age of competition how long can they afford such ignorance and inefficiency?

An enterprise with poor organizational design would  always nurture bureaucratic and non-empathetic employees with little or no concern for customer convenience and needs. They make hassle-prone processes and execute them with no rationale.

I know you want me to name the bank...well does it really make any difference? All I can say is that the Banker's bank is still not customer's bank! Use your imagination!

Last heard, my friend has been asked by the bank to bring his new car to the branch and show the same to bank officials. Reminds me of the ancient stories where people used to take their newly bought buffaloes to the zamindar (landlord) for blessings :-)