We would like to bring to your notice that as per reports from Our units, in most of the branches CUstomers are influenced to take third party products sUch as mutual funds, insurance policies by using their balance in savings and current accounts. In their urge to satisfy the higher authorities over achieving the targets set for third party products, branches, they are more attentive and receptive to third party products, mindless of losing their existing core business like CASA
Itis our observation that selling third party products at the expense of our own Core business does not seem to be beneficialto the bgnk whencompared to
income generated by the third party products Vis a Vis effective utilization of funds available through low cost or nocost deposits, Further CUstomers too need to feel the pain of beingforced to buy the products when they are unwilling. We
willnot be misunderstood for our observatiorn that there is more appetite to sel
the third party products lured by certain rewards or entertainments and thus focUs on core businesS activifies is gradually losing its steam which ulfimately will affect the healthy growth of business of the bank.
While we are not against bank’s endeavour in augmenting income through sUch avenues we feel that there should be a balanced approach tO ensure that core
business activities are given top priority and thrust in preference to third party products.
We hope you wllappreciate our above view point and take appropriate steps.
