'Businessmen prefer PSU banks for loans; pvt banks for ATMs'

Majority of businessmen go for public sector banks for their loan requirements, barring home loans, as they find private lenders to be "clever" with their offers and charging higher rates, a survey has found.

However, when it comes to services like ATMs, phone and internet banking, private banks get an upper hand for their professional approach and efficiency, according to the survey by industry chamber Assocham.

"For loan facility, majority of businessmen prefer public sector banks as they found them much more reliable and secure, barring for home loans for which they prefer private banks," it said adding that for loans, private banks charge high rates of interests and are clever with customers.

In its survey - Growth and Emergence of Public and Private Sector Banks in India: Customer’s and Investor’s Perceptions - the chamber has interviewed over 250 salaried employees and businessmen.

Over 60 per cent of the businessmen prefer private banks for ATMs, phone and internet banking because they are highly professional, quick and efficient, it said.

The survey also revealed that about 60 per cent of the salaried employees prefer state-owned banking mechanism for insurance purposes as they feel that such institutions are more reliable, secure and trustworthy.

To invest in bonds, securities and opening demand deposit accounts, over 40 per cent businessmen prefer public sector banks, while 20 per cent prefer private banks.

The survey also revealed that 50 per cent of the salaried employees prefer private sector banks for mutual funds, while only 20 per cent prefer public sector banks.

For demand and fixed deposits, majority of the employees have given equal weight to both the public sector and private banks, while businessmen are more inclined towards PSBs for all types of deposits, it added.