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Health Insurance Cross-selling in Prathama UP Gramin Bank Intensifies Amid Amalgamation of RRBs
Prathama UP Gramin Bank's Health Premier League highlights cross-selling, sparking concerns amid RRB amalgamation. Critics warn overemphasis on cross-selling challenges, operational focus and priorities during this crucial transformation phase.
Author: Saurav Kumar
Published: January 13, 2025
The ongoing Health Premier League (HPL), organised in Prathama UP Gramin Bank (PUPGB) as part of its collaboration with Future Generali Insurance Company (FGI), has turned the spotlight on the growing concerns surrounding Regional Rural Banks (RRBs). This cross-selling league, featuring six teams—Amroha Hurricanes, Ghaziabad Challengers, Jhansi Royals, and others— comes amid the ongoing process of amalgamation of RRBs.
League Table Overview
The league, spanning three rounds from January 6 to February 28, 2025, is gearing up for its knockout stages. With fixtures scheduled through March, the grand finale is set for March 27. Players representing various bank branches vie for the coveted championship, with teams like Amroha Hurricanes and Gonda Gladiators capturing attention.
Image: The Health Premier League schedule in PUPGB
Cross-selling vs Amalgamation
The introduction of the HPL in Prathama UP Gramin Bank has sparked concerns due to its timing, which coincides with the ongoing amalgamation process of RRBs. This period is critical, with discussions focusing on operational transparency and employee welfare. Commenting on the issue, an official told Kanal, “RRBs are undergoing a significant amalgamation process, and amidst this, bank management promoting cross-selling initiatives clearly reflects the commercialisation intent of the leadership, sidelining broader policy goals.”
In recent times, unions within Prathama UP Gramin Bank have consistently expressed concerns regarding the proposal to designate Bank of Baroda as the sponsor bank for the upcoming amalgamation. This proposal has also sparked controversies surrounding the location of the headquarters for the upcoming amalgamated RRB.
A similar initiative, the Insurance Premier League (IPL), was recently observed in SBI-sponsored RRBs. The Department of Financial Services (DFS) launched the ‘One State, One RRB’ amalgamation plan on November 4, 2024, intending to consolidate RRBs across the country.
FGI Allegations Raise Eyebrows
Behind the league, allegations regarding FGI's practices have come to light. According to another bank official on condition of anonymity, Kanal said, “FGI charges a premium as high as 0.50% + GST, compared to other insurers offering 0.15% + GST. Policy issuance delays and unexplained discrepancies in premium amounts have been reported, further raising concerns about the fairness of this partnership.”
As the HPL progresses, it has raised concerns about the overemphasis on cross-selling, potentially overshadowing core banking services. This issue comes at a critical juncture when RRBs are undergoing significant transformation through the ongoing amalgamation process.