Are Bank of Baroda Customers not receiving Loan Disbursements on Time?
The All India Bank of Baroda Officers’ Association has written to Debadatta Chand, the Managing Director and CEO of Bank of Baroda, raising concerns about the current practice of observing “Log-in Days” to promote loan disbursals. In their letter, the association highlighted challenges faced at the branch level due to this practice and proposed extending the initiative to improve customer service and business growth.
The association acknowledged the importance of “Log-in Days” in fostering healthy competition and driving the bank’s growth. However, they pointed out that the strict emphasis on disbursing loans exclusively on these designated days has led to operational challenges.
Customer Service Impact
The letter revealed that in some cases, branches are intentionally delaying loan disbursements to align with the “Log-in Days” schedule. This delay, the association stated, inconveniences customers who require immediate financial assistance for asset creation or other needs. Such delays have not only disrupted customers’ financial plans but also caused dissatisfaction, prompting some borrowers to seek loans from competing banks. This, they noted, has resulted in a loss of valuable business for Bank of Baroda.
Proposed Solution
To address these concerns, the association suggested replacing “Log-in Days” with extended periods such as “Log-in Fortnights” or “Log-in Months.” This change, they argued, would allow branches more flexibility to meet customers’ urgent needs while still achieving the objectives of the initiative. By providing an extended timeframe, branches could deliver timely customer service without compromising on their performance metrics.
Benefits of the Proposal
The association emphasized that implementing this change during the final quarter of the financial year would have multiple benefits. It would:
- Improve customer satisfaction by ensuring prompt loan disbursal.
- Prevent loss of business to competitors.
- Enable branches to contribute more meaningfully to the bank’s business goals.
- Support the bank’s overall growth trajectory by aligning customer service with business targets.
The association concluded the letter by expressing confidence that the management would consider their suggestion favorably and take steps toward a practical resolution. They reiterated their belief that this adjustment would strike a balance between customer satisfaction and business growth objectives.
