60% salaried people go for public sector banks

New Delhi, May 7 (UNI) Even as private sector banks allure customers with smoother services, 60 per cent salaried employees in the country still prefer state-run banks for insurance purposes, as they are more reliable, secure and trustworthy.

In a study conducted by industry body Assocham titled 'Growth and Emergence of Public and Private Sector Banks in India: Customer's and Investor's Perceptions', fourty per cent of the employees said they prefer public sector banks for purposes of investment in bonds and securities as compared to 30 per cent who prefer the private banks.

''For bonds and securities, businessmen also share similar sentiments with 80 per cent preferring PSBs,'' Assocham President Venugopal N Dhoot said.

The insurance services provided by the public sector banks are preferred by 60 per cent of the salaried employees, while only 20 per cent prefer private banks.

This preference is mainly due to a general perception of public sector banks being more reliable, secure and also trustworthy, Mr Dhoot said.

However, the ratio shows a declining trend for parking money in mutual funds where only 20 per cent of the salaried employees prefer public sector banks, whereas 50 per cent preferred the private sector.

The study said most of the businessmen prefer Indian Overseas Bank, Corporation Bank, PNB, SBI and Syndicate Bank in the public sector, while in the private banks, they prefer HDFC, Citibank, ICICI and Kotak Mahindra.

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

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