Monday, March 30, 2009

Bad business ethics - Kotak Mahindra Bank

I wanted to take a moment to write about a really bad business ethic followed by Kotak Mahindra Bank (from now called KMB).

I have a home loan via KMB. Recently I did a spot check and found that I was paying around 13% interest on my loan. I read about the SBI Happy Loan scheme which is giving Home Loans at 9.75% and decided to switch.

As a part of submitting documentation about my property to SBI, I had to collect some documents (viz, Foreclosure Letter, Loan statement and property NOC) from KMB. I called up a representative called Etesh Jandial who handles my case at Kotak and requested him for these documents. Pop came a reply that it will take 7 working days for him to procure the same. On arguing with him about why such a long time, he said, the documents come from Mumbai head office and take time. I stopped arguing and waited for exactly 7 working days and gave him a call again.

This time he said that the documents are available and I should collect it from the Sorabh Hall branch. I went in there and met him. He told me to wait and went inside his cabin. I could see him in his cabin which was luckily visible from the reception where I was sitting. He was typing away something on the computer and then collected some printouts, stamped them and then came out and handed over those documents to me.

Notice that this entire process took 1/2 an hour and was done on the fly when I came physically to the office. So the 7 working day crap which I was given on the phone was just an excuse to delay the process. This entire thing was just an attempt to fool me which I am pretty pissed about.

Its so disappointing to know that professionals of such a large and reputed bank follow shallow and disgusting business practices. I'd really advise anybody to not deal with Pune office of Kotak's Home Loan department.

7 comments:

Chaitali said...

Very true! I'm dealing with the same bank for my homeloan. You might want to check .. they try to sell a home insurance under cover as well saying its a onetime payment and that gets included in your home loan amount so that you end up paying an interest on their insurance scheme for the entire tenure of your loan thinking its your principal amount. I'm switching too!!!

Nisha Roy said...

That is absolutely true...do not go to the kotak bank.......SBI is the best bank

jeebumbaa said...

It is not so bad taking into consideration the documents were delivered on the date it was promised.

Unknown said...

Well now their lending rate for new customers is 8.25% and 13% for old customers..just imagine..my bro-in law threatened to get it transferred and then they changed the rate to 8.25%...

Anonymous said...

very true, all full of sh***, crap... bad service. They suggest you rescheduling of intrest rate and then demand for more money with a promise of lower intrest rate after few month, but their promises are like them.
Some time feels like "inse karja liya to gunha kiya" isse accha to beghar hote .....

ashish said...

I suggest people not to go for Kotak (KOTAK OVER TAKING AND KILLING BANK) any more.... better to go for any nationalize bank.. don’t bank on them ..

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