Private banks brought down by hubris, taught humility in return.

In a recent article, Srinath Sridharan discusses the lack of humility in many private sector banks and the impact it has on consumers. He highlights the aggressive internal practices that drive a culture of arrogance within these banks and suggests that this stems from a focus on sales and revenue maximization rather than customer care. Sridharan argues that the Reserve Bank of India needs to step up its efforts in regulating these banks and streamlining the complaint process to address consumer grievances. He also critiques the excessive costs and fancy perks offered by banks to attract customers, noting that these practices are now being reconsidered due to their unsustainable nature. Sridharan further emphasizes the need for humility in banking, suggesting that it should be reflected not only in customer interactions but also in banking products themselves. He criticizes the lack of differentiation in the Indian banking sector and urges bank boards to prioritize humility and a straightforward approach in their operations. Sridharan emphasizes the importance of boards being knowledgeable about their CXOs and spending more time engaging with them and conducting “mystery shopping” to better understand the consumer experience. Overall, the article calls for a shift in the organizational culture of private sector banks towards one that is more humble and customer-centric.