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SBI Life Cross-Selling Pressure Affecting Employees in Utkal Grameen Bank
According to an employee of Utkal Grameen Bank, Odisha has a significant customer base from Below Poverty Line (BPL) backgrounds, and the push to cross-sell SBI Life Insurance is negatively impacting the bank’s ability to retain these customers and their deposits. The employee stated, "We are under pressure to forcefully sell SBI Life policies to customers for whom these products are both unaffordable and irrelevant, leading to growing distrust towards our bank."
Author: Saurav Kumar
Published: August 23, 2024
SBI Life cross selling pressure is taking toll on employees of Utkal Grameen Bank (UGB) as the stringent targets of a new campaign trail for the month of August is on roll.
Cross - Selling Felicitation
UGB has initiated the “Nayi Umang” campaign, aimed at enhancing the cross-selling of SBI Life Insurance products across its 433 branches. The campaign, running from August 1st to August 30th, 2024, sets specific targets for each Regional Office (RO) and network, with an overall goal of achieving Rs. 2.90 crore in GM Honour targets and Rs. 3.30 crore in Chairman Honour targets.
For example, the Bargarh region, with 56 branches, has set monthly targets of Rs. 40 lakh for General Manager (GM) Honour and Rs. 45 lakh for Chairman Honour. Similarly, Network-I, which covers 186 branches, has a higher target of Rs. 1.20 crore for GM Honour and Rs. 1.35 crore for Chairman Honour. The campaign poster also claims special recognition and honours will be given to branches and CIFs that meet or exceed these targets, with additional rewards for consistent performance.
At the branch level, the campaign sets criteria based on branch scale and Cash in Flow (CIF). For instance, branches with a scale of 1 and CIF between Rs. 2.50 lakh and Rs.3 lakh will be eligible for GM Honour or Chairman Honour. Branches are encouraged to participate in off-site events, and all business conducted during the campaign period will be considered for rewards.
The target to cross sell SBI Mutual Fund SIP is also in play as the different WhatsApp groups get targets directed by the General Manager. One of the accessed WhatsApp message details about the campaign named “Manzil” to be in effect from August 16 August 31.
Cross Selling Burden Strain Customers and Employees
According to an employee of UGB, Odisha has a significant customer base from Below Poverty Line (BPL) backgrounds, and the push to cross-sell SBI Life Insurance is negatively impacting the bank’s ability to retain these customers and their deposits. The employee stated, “We are under pressure to forcefully sell SBI Life policies to customers for whom these products are both unaffordable and irrelevant, leading to growing distrust towards our bank.”
The emphasis on promoting third-party products (TPP) from the sponsor bank, the State Bank of India (SBI) is overshadowing core banking services and affecting employees' work-life balance in UGB.
Another employee, speaking on condition of anonymity, said, “Management evaluates our performance based on high cross-selling of SBI Life Insurance, but this focus is having a demoralising effect on us, severely disrupting our work-life balance.”
Following the recent pressure to meet targets for selling SBI Personal Accident Insurance, UGB employees are now burdened with additional expectations to push SBI Life products. In response, officers and employees have previously protested against the “sell or resign” demands made by the Regional Manager, highlighting the high handed trend to push the TPPs in RRBs.