Cross-selling Pressure Threatens Core Banking Services at Telangana Grameena Bank, AIRRBEA Unions Warn of Rising Mis-selling Risks
Telangana Grameena Bank unions raise alarm over rising cross-selling pressure, warning it hampers core banking and risks staff mis-selling.
Author: Saurav Kumar
Published: 10 hours ago
In a letter to the Chairman of Telangana Grameena Bank (TGB), two major staff unions—the Telangana Grameena Bank Officers’ Association (TGBOA) and the Telangana Grameena Bank Employees’ Union (TGBEU)—have raised serious concerns over what they call “exorbitant pressure” on employees to meet cross-selling targets for third-party financial products.
The letter, dated May 17, 2025, highlights how this growing emphasis on insurance and mutual fund sales is impacting core banking services and leading to unethical practices.
Unrealistic Targets, Threats of Transfers, and Risk of Mis-Selling
The unions noted that despite the bank witnessing negative growth in core banking parameters and a rise in Non-Performing Assets (NPAs), excessive focus is being placed on selling life insurance, general insurance, and mutual fund products.
“Though the bank is reeling under negative growth in core business parameters and NPA has increased, the total focus is on sourcing Life, General Insurance and Mutual Fund business by fixing unrealistic targets,” the letter reads.
The unions alleged that some regional managers are pressuring staff not to leave their branches without meeting targets, leading to a situation where mis-selling becomes inevitable. Even more troubling, they claim some Business Development Managers (BDMs) of third-party providers, with tacit approval from bank controllers, are threatening staff with transfers to “difficult centres” if targets aren’t met.
Violation of Policy Guidelines and Unfair Appraisals
The unions further accused the bank of violating its own Customer Value Enhancement and Third Party Products Policy (Circular No. GB/2025-26/07 dated 24.04.2025). According to the policy, staff are not to receive any cash or non-cash incentives from third-party product providers. However, the unions pointed out ongoing practices of distributing gifts during review meetings and internal campaigns.
“In the guise of motivational programs, staff are offered stays at exotic resorts… spouses of staff are also allowed. This is nothing but a non-cash incentive,” the letter stated.
Additionally, branches without IRDAI/RBI/SEBI-certified staff are reportedly still being given sales targets, in violation of the policy. The unions argue that marking unqualified staff on their annual appraisals based on third-party product performance is unfair and must be rectified.
The letter also cited a report from The Business Line, which indicated that while public sector banks as a whole saw slower growth in insurance premium collections in FY 2024–25 compared to the previous year, TGB witnessed higher growth, suggesting disproportionate emphasis on non-core business.
The unions have urged the bank’s leadership to shift focus back to its core responsibilities—mobilising deposits, advancing credit, and reducing NPAs—rather than chasing marginal commission income from third-party product sales.
The letter concluded with a call for immediate corrective action to avoid reputational damage and restore the bank’s focus on responsible rural banking.
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