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Bankers in Bank of Baroda Grapple with Unrelenting Target Pressure for India First Life Insurance Sales
Bankers in Bank of Baroda grapple with persistent target pressure, pushed to sell India First Life Insurance. Bank unions and associations raise concerns, calling it a deviation from core banking services.
Author: Saurav Kumar
Published: November 14, 2023
In the aftermath of the Bob World fiasco, the pressure to meet targets continues unabated, Bank of Baroda’s bankers now feeling the heat to push India First Life Insurance packages.
Pic: Directive to Sell Life Insurance
The information further mentions that Baroda Diwas Login drive for “India First Life Insurance” will be observed during the first 5 working days of every month. It also details the benchmark for various branches in semi urban and rural regions.
Endless Targets
Bankers in Bank of Baroda find themselves caught in a relentless cycle of meeting life insurance targets.
Instances of target and deadline pressure in public sector banks have become increasingly prevalent. A Bank of Baroda employee, speaking anonymously, disclosed, “Regional Managers relentlessly pressure branch Managers to meet life insurance targets pushing the pressure baton to employees, creating an endless cycle of troublesome targets.”
He further claimed that senior-level executives, such as zonal managers and regional managers, enjoy perks like holiday packages, adding to the frustration of frontline employees.
According to banking expert Abhay Datar, banks employ specific strategies for selling third-party products, with aggressive promotions targeting younger customers for mutual funds and older individuals for insurance and pension plans.
Moreover, a recent Kanal report highlighted pressure on State Bank of India (SBI) officials to sell SBI Life Insurance products, reflecting a broader issue across public sector banks.
As per the advisory from the Department of Financial Services, Ministry of Finance, cases of mis-selling of life insurance policies and unethical practices in banks and life insurance companies have been reported.
Pic: Govt Advisory on Mis-Selling of Life Insurance Policies
The suspension of the Bob World app by the RBI came amid allegations of employees working under pressure to meet targets, escalating concerns about the shortage of employees in public sector banks.
Targets Culture Slammed
The We Bankers Association, a trade union of bank employees, took to social media, alleging mis-selling of India First Life Insurance and exerting enormous pressure on bankers.
On X, We Bankers Association posted, “It has come to our notice @bankofbaroda Management is putting enormous pressure on Br Officials for achieving cross selling target in @IndiaFirst_Life insurance. When @DFS_India has already issued strict guidelines against mis-selling of Life Insurance policies through Banking Channel to All MD CEO of PSU Banks. Why so much Target Pressure for a small figure of non interest income compromising Banking Core Business ??? This proves that these Executives Bosses are still rewarded with expensive gifts, travel vouchers to foreign exotic locations by 3rd party insurance companies. Mis-selling 3rd party insurance is the same story of All PSU Banks. We demand an independent forensic audit on Assets and Bank Account Transactions of Top Managements and their family members of all PSU Banks.”
The All India Bank Officers Confederation (AIBOC) has been actively opposing the functionality of Third-Party Payment Service Provider(TPP) in public sector banks, arguing that banks are becoming one-stop supermarkets for all banking services shifting focus from core services to third-party products.
The pressure to sell life insurance schemes is evidently affecting bank officials and employees, according to one of the office bearers of Bank of Baroda Employees Union.
On condition of anonymity, the person told Kanal, “Every month there’s a Baroda Bima Divas to fulfil targets that exerts immense pressure on officials and employees to get customers for India First Life Insurance. The pressure comes from the zonal and regional managers and if targets are not met, it results in open humiliation during meetings.”
So, amid prevalent target culture in public sector banks, rampant selling of third party products like insurance came under vehement opposition by trade unions and officers association raising demands of withdrawal.