Private and PSU banks

With an aim  to bring down the no: of savings bank accounts that I hold, I decided to close one of my dormant SB account of mine with a leading private sector bank.
Closing down the account was very simple. I submitted a request for closure of my account at a branch near my home and a few weeks later, I received the closure confirmation and a "Manager's cheque" from my home branch in Bangalore.

I deposited this cheque with one of India's biggest PSU bank. The branch manager called me up and returned the cheque. The reason provided was that "their machine" didn't accept the cheque and they were not sure what a "Manager's cheque" was. The branch manager somehow managed to return the cheque to me without a written explanation ( I didn't persist either, quite unusual of me ).

One retired PSU bank executive came to my help when I was discussing about this with him. He suggested that I tell the bank manager that "Manager's cheque" was nothing but a "pay order" and he can send it for collection to the private bank in other city like he does for any "outstation cheque".

When I carried this message back to the bank, the branch manager was not enthusiastic. He was  halfheartedly willing to send my cheque for collection and he said that he will not do any follow up in case the private bank doesn't respond back to his branch.

Unwilling to let my cheque go with an ambiguous process and an unenthusiastic person, I finally  deposited the cheque with  another bank ( private) account of mine.
The whole episode left me wondering about the attitude of PSU banks in such a competitive environment and the "knowledge " levels of a branch manager ( in a metro city!)
Although PSU banks have some inherent advantages, such "excellent? customer service attitude", "knowledgeable?? managers" and "reckless lending " may eventually kill them.

After this episode, When I  see a PE of 5 or less  for a PSU bank and private sector bank having a much higher P/E number , I have definitely stopped asking "Why?"

Also read, Money with PSU banks 

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