FEWER COMPLAINTS AGAINST FOREIGN, NEW PRIVATE BANKS IN 2009-10

The share of complaints received by the banking ombudsman against foreign banks and new private sector banks, which had been on an uptrend in recent years, showed signs of slowing down in 2009-10.

Though the number of complaints against private banks was marginally higher at 22,553 (21,982 in 2008-09) their share in the total complaints has come down to 28 per cent from 32 per cent. The number of complaints against foreign banks fell to 11,450 from 11,700 (from 17 per cent to 14 per cent)

The decline in the share of complaints against foreign banks and new private sector can be attributed to a reduction in the card-related complaints, which was one of the main reasons for an increase in the past. Complaints against private sector banks and foreign sector banks fell to 4,725 (5,950) and 4,258 (5,737), respectively.

Among the private sector banks, ICICI Bank and HDFC Bank saw a fall in the number of credit card complaints.

However, complaints against public sector banks rose 26 per cent to 41,924 (33,141).

In 2009-10, SBI group alone accounted for little less than one-third of the total number of complaints received by SCBs, the RBI report on trends and progress in 2009-10 showed.

The number of complaints against SBI increased to 18,939 (15,306).

The total number of complaints received by the banking ombudsman rose by almost 15 per cent for the year 2009-10, according to the data released by the RBI.

The largest number of complaints was regarding credit, debit and ATM cards. The banking ombudsman received 18,810 complaints on this account, as against 17,648 in the year-ago period.

Though the largest number of complaints received was with respect to credit, debit and ATM cards, there was a decline in the share of such complaints in 2009-10. These complaints constituted only 24 per cent of the total number of complaints, as against 26 per cent in 2008-09. Complaints on account of core banking business of banks, particularly deposits and loans, also showed a fall during the year.

The Banking Ombudsman office received a total 79,266 complaints at its 15 offices in 2009-10, as against 69,117 complaints in 2008-09.

The three centres of Mumbai, New Delhi and Chennai accounted almost 44 per cent of the total complaints in 2009-10.

SOURCE: http://www.thehindubusinessline.com/2010/11/09/stories/2010110952550600.htm