SBI’s ₹1 Lakh Cr Profit Milestone Sparks Concern Over Cross-Selling Commission Strategy
SBI posts record profit in Q4FY25, with strong loan growth, improved asset quality, and a sharp rise in non-interest income from cross-selling and commissions.
Author: Neha Bodke
Published: May 6, 2025
The State Bank of India (SBI) has announced a record-breaking operating profit of ₹1,10,579 crore in FY25—up nearly 18% year-on-year. While the bank celebrates this historic achievement, a critical lens is now being turned toward the cross-selling component, particularly insurance commissions, which contributed just ₹4,546 crore, or 2.14% of total income, to the bank’s books.
Commission: Small Numbers, Big Pressure
Among the ₹45,983 crore in non-interest income earned by SBI, ₹30,919 crore came from fee-based services, ₹6,027 crore from loan processing, and ₹3,491 crore from Letter of Credit/Bank Guarantee charges. Cross-selling commissions—covering insurance products through SBI Life and SBI General and other third-party products—accounted for ₹4,546 crore, making it one of the smaller components of the bank’s non-interest income.
Image:Boosting earnings beyond interest: SBI saw a notable rise in non-interest income in FY25, driven by fee income and a strong 16.84% jump in cross-selling, reflecting strategic focus on diversified and stable revenue streams.
According to SBI’s own data, commissions earned specifically through digital channels from its insurance subsidiaries stood at ₹28.88 crore from SBI Life and ₹1.13 crore from SBI General— adding up to ₹30 crore. Despite this modest contribution, employees continue to face unrealistic targets focused on insurance sales, raising concerns about the disproportionate pressure placed on branch staff compared to the actual revenue generated.
Employees’ Voice & Ethics in Question
Numerous employee forums and social media posts have highlighted how disproportionate targets related to cross-selling, especially of SBI’s own insurance arms, are creating a high-stress environment within branches. Many have shared cases where routine banking activities are deprioritized in favor of pushing insurance products, often to senior citizens or unknowing customers.
Image: Tweets from different accounts concerned about commission income after SBI FY2024-25 results are out.
The numbers validate this growing discontent—cross-selling revenue, including commission, is a minuscule part of SBI’s massive ₹4.6 lakh crore income, yet its impact on internal culture and employee morale is significant.
Digital Channels, Ethical Dilemma
SBI’s YONO app, which accounted for 64% of new savings accounts in FY25, has also been leveraged heavily for cross-selling. However, the digital push has drawn criticism when bundled insurance options are not transparently explained or opt-out mechanisms are unclear—especially to rural or digitally unaware customers.
Conclusion
SBI’s FY25 results reflect operational excellence and strong financial discipline. But the disproportionate focus on a marginally contributing revenue stream like cross-selling, especially through internal insurance arms, raises serious questions about long-term trust, compliance, and ethical banking.
[Reference: Q4 FY2024-25 SBI Result https://sbi.co.in/documents/17836/0/SBI+Press+Release+Q4FY25.pdf/bcdbd1ac-78a7-811a-ed03-7a41bd911e4d?t=1746264227407]
[Reference: The Analyst Presentation 2024 - 25 https://t.co/2FoTAqoitp]
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