State Bank of India is the biggest public sector bank in India and one of the largest company in India by total assets owned. It has the largest customer base in India and also one of the largest customer bases in the world. It is one of the finest financial institutions in India, but it does have its own set of demerits.
First of all, the interest rate offered on savings and term deposits is quite low as of now, and the minimum balance limit has also been enhanced recently. Furthermore, one of the biggest issues faced by many customers is that it is generally always overcrowded, almost all its branches.
SBI being such a big nationalized bank and the fact that almost every third to the fourth person has his/her account in it makes it one of the most crowded banks out there. So, we have come up with this article and here we have showcased some of the potential contenders to SBI. Just stay tuned till the end of this very simple article, below is the list of best alternatives:
It is one of the best banks in India and a tough contender to SBI in almost all aspects. It belongs to the new generation of private banks type which was introduced by the then Prime Minister of India, Dr. Manmohan Singh. It is the third-largest private firm in India and one of the four Indian firms to have crossed the gigantic $100 billion mark. It is one of the best banks in India and you can definitely look forward to banking with it. Let us have an overview of some of its salient attributes:
- It is a private sector bank.
- With the help of IMPS, NEFT, RTGS, Debit and credit cards, UPI, etc online fund transfers are simple and easy.
- You can recharge your mobile, telephone, WiFi, make bill payments related to electricity, gas cylinders, hotel, tickets for buses, trains, flights, etc right from your fingertips once you create an account here and then register on its official app.
- The facility of Debit and credit cards is available here for your smooth banking experience.
- Mobile banking, Net banking, etc further add to its advantages.
- It offers more interest rates on savings and term deposits compared to some of its nationalized counterparts.
- Though you will have to maintain more minimum balance compared to some of its nationalized counterparts here.
- You get a lot of miscellaneous features, like – Demat, various loans, locker facility, etc.
- One of the biggest advantages here is that it is properly managed and maintained and you will not find it overcrowded like its main contender.
A very popular bank preferred by a large number of people, it is the second-largest private sector bank in India and one of the three D-DIBS (Domestic – Systemically Important Banks) along with SBI and HDFC banks as per RBI annual report. This means that these banks are too hard to fail and if they do fail, then it would have a very negative impact on the entire economy. Let us have a glance at some of its main features:
- It supports all the major online fund transfer modes, like – IMPS, NEFT, RTGS, etc.
- You can get your own debit and credit cards and then use them on a normal basis.
- Once you have created your account here, you can register on its official app and carry out all your online transactions with ease.
- You can pay bills, recharge, and shop from various online modes and you will also get frequent discounts, offers, coupons, etc.
- You get a somewhat better interest rate on both saving and term deposit accounts here as compared to its nationalized bank counterparts.
- The minimum balance criteria here is more compared to its main contender and so are some of the occasional charges related to shopping, etc via credit cards.
- You get locker facilities, loan facilities, and other miscellaneous stuff.
- The bank branches are usually not overcrowded and the customer management is fine.
One of the top-rated and famous private sector banks out there, it is the third-largest private sector bank in India. Let us have a look at some of its unique characteristics:
- The interest rate offered on savings and term deposits is more compared to its main rival.
- The minimum balance limit however is more compared to its nationalized counterparts.
- You get all the traditional banking features here, like – a checkbook, debit and credit cards, customer booklet, etc.
- Miscellaneous features like – Loans, Insurance covers, Locker facility, etc are all available here.
- Once you create your account here, you can avail all the digital banking features like – NEFT, RTGS, IMPS, etc.
- You can make all online bill payments, shop online and even earn frequent rewards on your online shopping.
- The branches are not overcrowded and the customer experience is quite smooth here.
Punjab National Bank
The second-largest nationalized bank after SBI is here. It has a large customer base and the trust of millions of customers. If you want to switch from SBI, but at the same time you also want to stick to a nationalized bank, then you can consider this as one of the perfect alternative options for you. Let us have a glance at some of its main attributes:
- The minimum balance amount limit is lower compared to most of its counterparts here.
- The interest rate offered on savings and term deposits is somewhat equal to SBI but lower than the private sector counterparts of this bank.
- You get access to all the miscellaneous facilities, like – locker, loans, etc.
- Once you create your account here, you can avail all of its digital banking facilities.
- You get access to IMPS, NEFT, RTGS, etc.
- It offers you your personalized checkbook, debit and credit cards, etc on request.
- You can shop online, pay multiple bills, book tickets, etc with a number of online fund transfer modes.
- When it comes to the customer experience, it varies and is somewhat like the SBI, but not as good as compared to its private sector counterparts.
- The branches are generally less crowded compared to SBI, but again, its private sector counterparts again win this segment.
Bank of Baroda
It is the third-largest public sector bank and one of the finest alternate options that you can choose. It is the multiple-time winner of the ‘Ease of digital transactions’ competition organized by the ministry of electronics, It, and technology, the Government of India. Let us check out some of its major merits:
- You get most of the digital banking features here, like – NEFT, RTGS, IMPS, UPI, etc.
- The transactions are quick and you will not face any hurdles with the interface of its official portal and mobile app.
- You can shop online, recharge, make bill payments, book utilities, and earn occasional rewards on your online transactions.
- The minimum balance limit is less compared to SBI and its private sector counterparts.
- The interest rate on savings and term deposit accounts is somewhat equal to SBI but lower compared to its private-sector rivals.
- You get a number of miscellaneous features here, like -locker facility, insurance, loans, etc.
- The branches are generally less crowded compared to SBI but not like its private sector counterparts and the same is the situation with the overall customer management experience.
A very famous and reputed public sector bank having a big customer base, it is the third-largest public sector bank in India. Let us have a glimpse of some of its main characteristics:
- It offers you almost all digital banking utilities.
- You can recharge your mobile, DTH, WiFi, etc with ease using its mobile app or portal.
- You can make bill payments, shop, book tickets, hotel rooms, etc.
- You can transfer funds online.
- The minimum balance requirements are less compared to SBI and its private sector counterparts.
- The interest rate offered on savings and term deposit accounts is somewhat equal to SBI but lower than its private sector counterparts.
- Locker facility, loan and insurance facilities, etc can be availed by the customers.
- The customer management experience is fine but not as good as its private sector counterparts.
- The branches are not that crowded but still, its private sector counterparts are better in this segment.
What is meant by a nationalized or a public sector bank?
A bank in which at least 51 percent of shares are owned by the Government of India is called nationalized or public sector bank.
What is meant by a Private sector bank?
A bank in which the majority (more than 51 percent) shares are with private players is known as a private sector bank.
Are nationalized banks managed by the Government of India?
Yes, all the nationalized banks are controlled and supervised by the Ministry of Finance, Government of India, and regulated by the Reserve Bank of India (RBI), since they are under the ownership of the Government of India. The private sector banks on the other hand also have to abide by the rules of RBI and the Ministry of Finance, Government of India since they are doing their business in India, but they are managed and controlled completely by their respective owners.
Why do people prefer public sector banks despite they offer fewer interest rates and also customer experience there is poor compared to private sector banks?
Well, there are quite a few reasons, like – people have more trust in public sector banks because they are owned by the Government of India and are focussed on serving people rather than profit-making, the main motto of the private sector banks, and the other main reason being the large minimum balance requirements of private sector banks, which most people in India cannot afford, as in India more than 80 percent of the people belong to the categories like – farmers, small scale earners, daily wage earners, etc.
Which bank should I choose, public sector or private sector?
Well, it depends on your needs and requirements. You can make a strong decision by going through this article coupled with some self-thinking.
Which is the best alternative to SBI?
It varies from individual to individual, and I hope you might have found an answer to this question after going through this article.