Do not take loans from Standard Chartered Bank

This is a follow-up on my earlier post. Can you believe that Customer Service Manager of Standard Chartered Bank called to convince me that what they had done was legal and as per their contract. I cannot imagine that intelligent hot shot bank executives who must have studied at all the top schools can come up with such a scam. If this is true, I would recommend to all of you out there who are planning to take a loan from Standard Chartered Bank or thinking of opening a bank account with them, don’t do so as you might be debited with charges that you never thought you had to pay. And if you can’t afford to pay their illogical charges, you will the additional expense of going to the Doctor to get medicines High Blood Pressure and hyper tension. My response to the customer service manager’s illogical argument is given below.

Friday, July 22, 2011

Mr. Ashish Bakre
Head-Consumer Banking Operations India
Standard Chartered Bank
Customer Care Unit
19, Rajaji Salai
Chennai, 600 001

Subject: Home Saver Account no. 52205942160
Ref no. 07/11/03574 (

Dear Ashish:

Today, I received a call from Sweta who told me that she is the Customer Service Manager with your bank. She had called me from telephone number 914430449459. I am confirming the conversation that I had with her so that there is no misunderstanding as to where I stand on the issue.

1. Sweta informed me that the bank has the right to revise the schedule of charges etc. In that case, I asked her to send me in writing so that I can have the same reviewed by my lawyer. In case my lawyer suggests that you have the legal right to charge me, I guess then I will have no choice. Of course, I don’t have to be a lawyer to figure out that this kind of arbitrary action will not stand in a court of law. Just because you have certain clauses in fine print in your agreement does not mean that they are legal and will withstand legal scrutuny. Also, I think this act of Standard Chartered is unconscionable. I am not sure how SCB executives sleep at night after taking such careless decisions.

2. Another logic that Sweta gave was that the bank had written to us that the annual charges will be debited to us thus implying that I had no reason to complain. By that logic, I am writing to you to reverse the charges. If just writing a letter does the trick, both of us can play the same game. I am sure if something is legal and logical for you, the same should be true for me.

3. Sweta informed me that I was saving Rs. 2 lakhs thus implying that paying Rs. 38,000 towards annual charges should not be very painful. I am not sure where Sweta came up with this number. I am surprised that a bank executive of such a large bank does not know how to calculate interest. Sweta was giving incorrect information which I think is unethical if not illegal. I am sure RBI has some rule that banks cannot dupe the customers by giving them false information. Also, I don’t think anyone has heard of Banks allowing their customers to save such huge interest. If banks can charge it or take anything extra from the customer they will. This is erxactly what you have.

I received the loan in November 2010 and you have debited me with Rs. 38,000/- towards annual charges. Does this make sense? I would suggest that you ask your executive who has come up with this stupid idea. In fact, I suggest that you fire him.

4. First of all, I am not interested in dealing with a bank like yours. If you cannot trust a bank, there is no point in dealing with them. When you take money from someone without his consent, I think it can be safely termed as “cheating.” If you do not want to keep me as your customer, I am willing to leave. But if you want to keep me as your customer, I will only accept a solution which does not increase my expenses or liability because I cannot afford it. Term loan is not acceptable as that will create more expense and liability for me. The only options left are as follows:

(a) Waive of the annual charge permanently. If I had known about the annual charge, I would not have taken the loan facility.

(b) Cancel the loan. I will arrange for the money to repay your loan. I think even if I borrow from a loan shark, I will be better of than dealing with Standard Chartered Bank.

Sweta told me that she will revert to us with a solution but from her tone it seemed she was thinking “Why do we get customers like Avinash Narula who question what we do?” Unfortunately, it is not Sweta’s fault. She is just a small cog in the wheel. This is a decision of a big hot shot executive who wants to rise in the organization by increasing the bank’s profits and ripping off the bank’s customers. Little does he know that this has been tried a by a number of people before with disastrous results.

I believe that all of sudden the bank has realized that it is not making money through HomeSaver’s Loan and as such you are trying to get out of it by forcing the customer to adopt some other option. I think you are manipulating and cheating your customers with this strategy.

I again hope that better sense will prevail amongst the executives of Standard Chartered Bank and you will attempt to retain your customers rather than lose a customer. In case you don’t know the value of the customer, I can do a short seminar for Free for your executives wherever in Delhi after we have settled this matter at hand. I am seriously concerned that some SCB executives do not understand the cost of losing a customer and will end up ruining your bank’s image by treating the customer as DIRT. I do hope the executive who came up with this idea will attend the seminar.


Avinash Narula

(1) Mr. Rakesh Singh, General Manager, SME Banking, India, Standard Chartered Bank, Customer Care Unit, 19, Rajaji Salai, Chennai 600001

(ii) The Branch Manager, Narain Manzil, 23 Barakhamba Road, New Delhi 110001

(iii) Managing Director, Standard Chartered Finance Limited, 10, Sansad Marg, New Delhi 110001

(iii) Managing Director, Standard Chartered Bank, H 56, 1st floor, Connaught Place, New Delhi 110001

Did you enjoy this post? Why not leave a comment below and continue the conversation, or subscribe to my feed and get articles like this delivered automatically to your feed reader.


You are right dear. Standard Chartered bank is charges too much for any of their services and all the bank executives don’t so some hidden condition which drive us in travels later.


It is unfortunate that a bank, or any institution, would treat a customer this way. Customer complaints aren’t something to take lightly. Every customer counts if you want your business and it’s reputation to grow in a positive way.


Has this been resolved since?


I more than agree with Mr Narula . I am facing the same with my home loan account with Standard Chartered Bank.
Even after closing the loan with payment as per schedule bank is now charging me other illogical charges and with helding my original documents . All my emails and mails going unreplied.


Leave a comment