State Bank of India (SBI) the largest bank of India, unfortunately happens to be the most mismanaged bank as well.
Potential:
With the network of 9, 000+ branches all over the country and 51 offices in 32 countries outside India SBI is certainly the best bank an investor can look for. This bank also has largest customer base in India. With the kind of network they have, their customers can find a branch in almost every corner of this country. Since its origin in 1806, SBI has grown outstandingly to become one of the most sought after financial institutions of this country.
But in spite of having such a good record SBI fails miserably when it comes to customer service or retail banking.
Reality:
The vast growth over the years has paralyzed the technology upgrades in SBI. They had a very tough time in computerizing the branches. Most of the time technological upgrades are trouble for customers. Biggest example of this is the implementation of ATM technology in SBI. It was done in different phases.
In the first phase customers were provided with a debit card that used to work only in the ATM located outside your branch!!! Very funny indeed, as it did not have shopping facility also. Then after some months the new debit cards were issued to the customers that could connect to some selected ATMs across the country and shopping facility available. Apart from the customers had to bear the apathy of the working staff. In my case ATM machine was located inside the bank itself (Kadugudi branch, Bangalore), so to access the “24hrs ATM facility” I had to go to ATM between 10:00 AM to 5:00 PM.
Same condition prevails in most of the branches with bank complete mockery of some to facilities that are ought to be provided to the customers as de facto.
Actions Required:
Complete streamlining of the similar facilities across the branches. No I am not asking for computerization of all branches or provision of wireless kits, that is day dreaming. What is needed is a predefined set of standards to be followed by all branches which ever is in a position of providing a certain facility. For instance there can be standard that whenever ATM runs out of money, it should get refilled within next 60 minutes. This will help customers acknowledge the SBI commitment to customer service which is not there right now.
In my opinion SBI has got the potential & infrastructure in place to be the best banking institution in the world. But due to lack of uniformity and quality in service it is merely the largest bank of India giving way to newly formed private banks like ICICI, ABN Amro to win over on the basis of better customer service.