SBI Life Cross-selling Targets Spark Concerns Among Bankers

Bankers working for the State Bank of India (SBI) and its sponsored Regional Rural Banks (RRBs) have been expressing dissatisfaction with the mounting pressure to meet cross-selling targets for SBI Life Insurance. Bankers say the pressure is looming large as we enter the fourth quarter of the financial year 2024-25. 

SBI Life Insurance Company Limited, a joint venture between SBI and BNP Paribas Cardif, has become a focal point for SBI’s cross-selling efforts. The company, with its diverse portfolio of insurance products, is marketed through SBI’s extensive banking network.

(A post on platform X exposing the pressure from senior executives to work on Sundays to achieve SBI Life targets.)  

Rising Pressure on Bankers

Saji Varghese, an executive committee member of the State Bank of India Employees’ Federation(SBIEF) and All India Vice President of Bank Employees’ Federation of India(BEFI), voiced serious concerns regarding SBI’s profit-driven policies. Speaking to Kanal, Varghese stated, “Lower expenses and higher profits have become the guiding principles. Employees are under constant pressure to meet cross-selling targets for SBI Life and other third-party products.”

Employees have reported late-night work, reduced holidays, and excessive workload due to these initiatives. Social media platforms like Quora have seen posts from SBI employees detailing their struggles, including the difficulty of balancing regular banking responsibilities with the additional cross-selling tasks.

Impact on Banking Operations and Concerns Over Privatisation

Varghese highlighted that these profit-oriented policies might detract from SBI’s primary mission as a public sector bank. “The focus on selling insurance and mutual funds diverts attention from deposit mobilisation, leading to declining deposits,” he noted.

The pressure to meet sales targets also negatively impacts customer service. Employees find it challenging to prioritise regular banking tasks while being evaluated on their ability to sell third-party products.

The ongoing push for cross-selling is viewed by some as part of a larger shift towards privatisation. “Such policies pave the way for SBI’s transformation from a public sector entity to a private corporate organisation,” Varghese cautioned.

RRBs Struggle to Bear the Pressure from Sponsor

SBI Life’s growing stake in SBI-sponsored RRBs has also raised questions. Critics argue that using RRBs for cross-selling might compromise their primary role of serving rural customers. 

As part of its recent League of Champions campaign, SBI has introduced aggressive sales targets for SBI Life across the 13 RRBs sponsored by them. Running from 25 November to 10 December 2024, the campaign aims to achieve ₹49.92 crore in combined sales. The initiative includes categories like the CGM Trophy and MD Trophy, with targets set at ₹23.75 crore and ₹26.17 crore, respectively.

Social Media Backlash

The overemphasis on SBI life over core banking activities has sparked great outrage on social media. Employees have shared their grievances, describing the immense strain caused by unrealistic targets. Many posts on platform X stress on how this pressure affects their morale and overall job satisfaction.

(An anonymous banker on platform X sharing screenshots of messages by higher officials via WhatsApp groups putting pressure on common bankers to prioritise SBI Life over core banking activities.)

Similar discussion is taking place on a Quora thread where a banker described their experience as a branch manager, stating, “Cross-selling targets are overwhelming. We are often forced to work late hours and sacrifice personal time to meet these expectations.”

(A response on quora under the question “How's your life daily in SBI as a branch manager?”) 

Allegations of Unethical Practices

In an attempt to meet the ambitious targets set by top executives, some branches have reportedly deceived customers into signing up for these insurance schemes. Instances of customers being coerced into purchasing policies as a prerequisite for availing loans or opening accounts have come to light in various regions.

Soumya Datta, an activist with Bank Bachao Desh Bachao Manch in Kolkata, criticised the unethical selling practices associated with SBI Life Insurance. “Unethical selling of TPPs is rampant across PSBs,” Datta said. “Due to immense pressure to achieve unreal targets, branches make it mandatory to sign up for insurance schemes. From my experience working among semi-literate customers, I am convinced that 90% of SBI Life Insurance policies sold in rural areas are through misinformation or unethical means.”

Rewards for Top Executives

Previous reports have highlighted the lavish rewards offered to top executives upon achieving SBI Life targets. Critics argue that such incentives encourage mis-selling and prioritise non-banking activities over core banking responsibilities. This system, combined with the strain on employees and customers, further amplifies concerns about the bank’s focus on profitability at the expense of ethical practices. The mounting pressure to achieve SBI Life cross-selling targets is a growing concern among SBI employees and those in its sponsored RRBs. Policymakers and stakeholders must address these concerns to ensure the well-being of employees and maintain the trust of customers.