The banker and author of three best-selling books says banks and relationship managers often indulge in cross-selling to earn more revenues and, therefore, the customer has to be more careful while dealing with them
"A customer can protect himself from falling into the hands of mercenary bankers by being alert, vigilant and at the same time doing due diligence," said Ravi Subramanian, banker and author, at an interactive session organised by Moneylife Foundation in Mumbai on Tuesday.
Speaking on 'How to see through the hard-sell of banks', Mr Subramanian said, "Bankers become 'bhayankar' when they fail to deliver what they have promised and try to hard-sell products on which they earn more money to the gullible customer."
Mr Subramanian has written three best-selling books, 'If God Was a Banker', 'I Bought the Monk's Ferrari' and 'Devil in Pinstripes', all from an insider's perspective from his nearly two-decades career with foreign banks.
Asking the audience whether they had a clue about the long queues at banks, or why customers calling were made to hold on for a long time, he explained this as a deliberate ploy to cross-sell by bank employees with the result that the end-customer suffers.
Mr Subramanian took up numerous examples of hard-selling by banks, like selling gold. He said it was not wise to buy gold from banks, as not only is gold cheaper (by 4.5%) from a branded jeweller or the neighbourhood goldsmith (14%), but banks do not buy the gold back if ever the customer required the money.
Mr Subramanian is an alumnus of IIM-Bangalore, who has worked with Citibank and Hong Kong and Shanghai Banking Corporation (HSBC).
He also talked about new fund offers (NFOs) that are often pushed by agents as "very good". "Banks and relationship managers often push NFOs, not because the new offer is very good, but because they can earn more money by churning. In any case, banks make more money, sometimes as high as 5% to 6%, from the asset management companies (AMCs)," Mr Subramanian said.
The workshop was well-attended, with several Moneylife Foundation members among the participants. The session turned out to be very interesting with Mr Subramanian addressing questions raised by the audience right through his presentation.
India's sugar production is estimated at 24.5 million tonnes in 2011-12 sugar year (October-September) against 18.8 million tonnes in the previous year. The annual demand is pegged at 22 million tonnes
New Delhi: An Empowered Group of Ministers (EGoM) on food today decided to allow sugar exports of up to 5 lakh tonnes as production this year is set to exceed the domestic demand, reports PTI.
Earlier, the food ministry had allowed and notified 5 lakh tonnes of export under Open General Licence (OGL). The decision was, however, kept on hold in view of high inflation and the matter was soon referred to the EGoM.
The EGoM, headed by finance minister Pranab Mukherjee, met today and decided to allow normal sugar exports not exceeding 5 lakh tonnes, sources added.
India's sugar production is estimated at 24.5 million tonnes in 2011-12 sugar year (October-September) against 18.8 million tonnes in the previous year. The annual demand is pegged at 22 million tonnes.
The government had earlier allowed mills to meet their export obligations of about one million tonnes under the Advance Licence Scheme (ALS).
Agriculture minister Sharad Pawar had earlier written to finance minister Pranab Mukherjee stating that sugar export should be allowed to prevent a situation of cane arrears to farmers.
Replying to the debate on Finance Bill, finance minister Pranab Mukherjee rolled back the 5% service tax on healthcare and also modified tax proposals relating to ready-made garments, dividend tax, personal computers, printers, mobile phones and auto parts
New Delhi: The Lok Sabha today passed the Finance Bill after finance minister Pranab Mukherjee rolled back his controversial 5% "misery tax" on healthcare and announced a few other tax concessions, reports PTI.
With the passage of the Finance Bill, the Lok Sabha completed the three-stage budgetary exercise amid walkout by the BJP-led opposition.
Replying to the debate on Finance Bill, Mr Mukherjee also modified tax proposals relating to ready-made garments, dividend tax, personal computers, printers, mobile phones and auto parts.
"The proposed levy on healthcare has raised considerable anxiety in this House and outside. The purpose of the levy was not merely to mobilise revenue. It was to pave the way for the introduction of the Goods and Services Tax (GST).
"However, I have decided to exempt the new levy in its entirety both in respect of services provided by hospitals as well as by way of diagnostic tests until GST comes into force," Mr Mukherjee said.
The announcement of withdrawal of the 5% service tax on services provided by air-conditioned hospitals of more than 25 beds and on diagnostic services was greeted with loud thumping on desks by members as the minister hoped that it will no more be called "misery tax".