“Unleash the Potential” or “Pressure”? Punjab & Sind Bank’s Insurance Cross-selling Contest Raises Ethical Alarm

In a troubling development that contradicts government assurances of ethical financial conduct, Punjab & Sind Bank (PSB) has launched an aggressive cross-selling campaign titled “Unleash the Potential”, in collaboration with SBI Life Insurance. The initiative, active from April 4 to May 31, 2025, with insurance issuance permitted up to June 10, ties performance incentives for branch and zonal managers directly to insurance policy sales.

The scheme, now circulating on social media, lays out performance-based rewards for employees who meet specific sales targets. These rewards include certificates of recognition from high-ranking executives and participation in exclusive training programs.

What’s in the contest?
Zonal Manager Rewards:
General Manager: 80% target – Certificate of Achievement
Executive Director: 90% – Certificate by ED
Managing Director: 100% – Certificate by MD
Branch Manager Rewards:
Zonal Manager: 70% target – Certificate at local training
General Manager: 80% – Regional program certificate
Executive Director: 90% – Regional training certificate
Managing Director: 100% – Regional certificate by MD
Additional rules include:
1. Contest based on Rated Premiums
2. 10% extra weightage for single premium policies
3. 50% weightage for SBI Life Smart Fortune Builder
4. All transactions must be routed via FINACLE menus

The top three performers in each category will be selected for recognition, further encouraging competitive, target-based cross-selling.

Image: tweet from an X account and the layout of “Unleash the Potential” scheme.

Why the Uproar?
In the recent past, India’s finance minister, Nirmala Sitharaman warned banks about cross-selling. This contest seems to run counter to those principles. Bank unions and employees argue that this incentive-driven model promotes target-based selling, which can spiral into cross-selling, especially when performance reviews and recognition are tied to insurance figures.

A social media post from an X account tagged high-level government accounts and unions, questioning the contradiction: “Can you see this? You say no unethical insurance selling in banks while PSU banks set leagues for their commission only.”

This concern is not new. Over the past few years, the banking workforce has raised alarms about the growing pressure to cross-sell third-party products, especially insurance, often with little concern for customer suitability or consent.

Regulatory Silence
As of now, neither Punjab & Sind Bank nor SBI Life Insurance has issued any response. This silence is particularly concerning given that Reserve Bank of India (RBI) and Insurance Regulatory and Development Authority of India (IRDAI) guidelines emphasize fair practices, customer consent, and ethical distribution of financial products.

Banking unions have long warned that such sales-based contests hurt both employees and customers. Employees face unreasonable expectations and stress, while customers may be sold products they don’t need or understand.

Is it just about “Unleashing Potential,” or is it another masked drive to push insurance for commission under the garb of recognition and achievement?