Heard that some banks are notorious in charging high interest if you miss out a few installments. Is this applicable to all the banks?

Yes, readjustment of rate due to late payments is applicable to all of the banks. The concern is only on 2 things:
(i) what is the readjusted rate for principle? and
(ii) how long does the banks can tolerate with late payment?

i. Normally around BLR + 0% ~ BLR + 2% as per current offer.
ii. Could be in 2 methods. Depending on how the terms set in your offer letter.

1. accumulated late installment of 1~3 months (i.e. you did not pay installment of July, Aug, Sep)
2. continuous late payment of 1~3 months (i.e. you paid July installment on Aug, Aug installment on Sep, Sep installment on Oct, in total, you have 1 month in arrear in each of the month)

** please rmb that there will be a higher rate charged on the late installment as well, other than the readjusted rate on the remaining principle

How do they inform late payment?

i. inform via letters. (commonly practiced by cost efficient banks for mild late payment and small loans)
ii. inform via calls. (practiced by all the banks especially cash oriented banks, HLB)
** but imposition of readjusted rate, they have neither responsibility nor obligation to inform you about this when they do it. No need to be mad with them as within the agreement, they had reserved the right to do it in this way. Don't ask me which bank will inform you about this, because all banks won't do it verbally.

When a readjusted rate had been imposed, the only way to revert it back to the initial approved rate is via written letter and THE BANK HAS THE RIGHT TO IGNORE IT AND YOU CAN'T ARGUE WITH THEM. This term is set in the agreement that you signed. (unless your loan was taken with them more than 5 years ago, then you might stand a chance)

It might sounds like banks are notorious bloodsucker, but, please keep in mind, you are not paying ppl's money on time. Forgetful / busy to pay is not an acceptable term in financing.