[Resolved]  ICICI Bank Home Loan — Govt please nationalize icici bank

I have a Home Loan from ICICI Bank which was drawn on April 2006. I am one of those lakhs of gullible customers who has fallen prey to ICICI Bank's low rate gimmick in 2005-06. Initially my Home Loan rate was 8.25% and now it is whopping 13.25% with no signs of coming down.

Before getting the loan portfolio this bank was ahead of
the market in offering low rates and now they are behind the market in cutting rates and ahead of the market in increasing the rates too.

The reason for increase in home loan rates as claimed by
ICICI bank is the higher COST OF FUNDS. The high cost of funds is ostensibly because of their losses in overseas ventures, high cost of operation, heavy exposure to retail loans and lately due the flight of low cost deposits. All this is only to be borne by Floating Rate Home Loan borrowers. EXISTING HOME LOAN BORROWERS HAVE TO PAY FOR ICICI BANK'S MISTAKES IN OVERSEAS AND OTHER BUSINESSES.
What is our mistake ? Our mistake is that we went ahead with the leading private sector bank for home loans ?

Now customers of floating rate home loans like me have to
be the victims of the excessive, inordinate, baseless, exorbitant cost of funds of ICICI Bank. When RBI cut CRR in OCT 07 & NOV 07 all market players reduced rates for existing and new borrowers of home loans last year.
However ICICI Bank did the reduction only for new customers. This year in Aug 08 / Sep 08 when RBI increased CRR by 100 BPS due to inflation touching 12% ICICI increased interest by 150 BPS in one month duration !. (As per the bank rules any rate of interest will be with effect from the beginning of the new quarter which means the gap between two increases has
to be 3 months.
However they have made 2 increases in month.) There are
many such examples where ICICI bank does not care about customers interests.
When RBI has reduced rates drastically in the last 3-4 months, ICICI is still sitting on
high rates.
Even now when Govt. is asking banks to reduce rates, ICICI
Bank is adamant and is saying that they will have to watch !!! But they have reduced the
rates for new home loans to 11.5%. FOR EXISITNG CUSTOMERS THEY ARE TEN STEPS AHEAD OF OTHERS IN INCREASING THE RATES BUT 100 STEPS BEHIND IN REDUCING THE RATES.

Is this the No. 1 private sector bank??. If they are No. 1
they should be most effective and competent and way above the rest of the
market in offering lowest rates. Just like how Reliance is
competitive in telecom market. With this bank having such unilateral and
non-transparent cost of funds which they pass on to floating rate home loan
customers, we can never hope to repay our principals. Since their cost of
funds is always going up and not in line with the market home loan
borrowers can never get back their property in their life time. Even to our
children we will pass on the debt.

There are lots of service and transparency woes. If we make
pre-payments the principal will not be adjusted in the next EMI but in
the EMI after that. That means our money is idle for one month. Their
rate increases are never communicated. The rate of interest is varying
from person to person. If we make more prepayments they will increase our
rates so that we are always indebted to them. Tax declarations are not
sent on time.
There are no foreclosure charges (after 6 months to 1 year
of loan) by many banks, but ICICI bank charges even if the loan has run
for 10 years.
How long can this continue.


My request is that the Govt, RBI and the
Finance Ministry should do something about ICICI Bank?s exploitation of
customers. Off late ICICI Bank was worried about the recent rumours
spread in the market and it has complained to various authorities about the
same. Can ICICI Bank please answer all o[censored]s what it is doing for the lakhs
and lakhs of customer complaints and grievance against it by various
people suffering ?
Whenever their customer help desk people are contacted
they give standard, generic replies and are never specific.

Recently when there was some issue with the bank we were
not able to do net transfer since their system was down for several days,
ATMs and branches had long queues. Service at the branches is
chaotic. The branch people define rules of their own and change the same time
to time as per their convenience. There is nothing like relationship and
nothing like service. Branch staff are very cold and unfriendly in
response and see customers as trouble makers. This is my experience as a
retail and corporate customer and it is not any exaggeration. If
somebody has time I can give pages and pages of illustrations with proof.

My request is that:

a) Govt and regulatory authorities must put to rest the
exploitation by
ICICI Bank to its borrowers.
b) A strict audit of the operations and procedures of
the bank must be
done
c) A consumer association or group must be invited to
view the
transparency in home loan rates being charged.
d) A free passage be given to customers who want to exit
the bank due
to the atrocities faced by them. Govt. should ensure that
PSU banks
should be allowed to take over these loans without hassle
so that
borrowers can eventually own their dream houses.
e) We should invite ICICI bank people in a public forum
or on media and
ask them to listen and respond to customer woes.

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