Un ethical trade practices of banks and companies

This sort of discount schemes and undercutting by banks and companies to attract customers not only bring in unhealthy trade practices but also encourage unethical business without any accountability. The other day SBI was offering 5 % cash discount for purchase of any Consumer durables using SBI credit card. Though the consumer initially benefits by this cash back, the logic for offering such discounts has no reasoning or rationale as the bank cannot afford to reduce its profit margin and offer this cash discount. Being a commercial organisation and a limited company , SBI is accountable to its regulators, customers and share holders and other stake holders. and how this 5% is accounted for is a major question. SEBI and RBI should not encourage such undesirable trade practices which if not nipped in the bud itself can lead to a major scam without leaving any trail.Merchant establishments also cannot pass on 5% to SBI as it may have its own impact on their profit and loss account and balance sheet. There will be some catch some where which the customers may not be able to gauge thorough his normal common sense. It is for authorities to have some regulation for these mal practices and bring in some order of ethics  Dr.T.V.Gopalakrishnan This comment appeared in Times of India in response to an article Companies offer freebies to beat slowdown dated 17/4/13)