ALL INDIA BANK OF BARODA OFFICERS’ ASSOCIATION

(CENTRAL OFFICE)
Registered Under Indian Trade Union Act. 1926 & Recognized by Bank
(Affiliated to INTUC and INBOC)
President: R. K. Chatterjee C/O Bank of Baroda
General Secretary : Prem Kumar Makker 3, Walchand Hirachand Marg
Email : aiboboa1964@gmail.com Ballard Pier, Mumbai-400001
Website : aiboboa.com Phone : 022-22618484, 49793233

CIRCULAR TO MEMBERS NO. 06 OF 2023 8th February, 2023

Dear Members,

RE : - UNWARRANTED AND UNBEARABLE PRESSURE TO SELL THIRD PARTY PRODUCTS

We are in receipt of several complaints from you people that you are under severe pressure on
getting coerced by your higher authorities to sell Third Party Products even by way of mis-selling
or even adopting unethical means.

As this practice of mis-selling is in place for quite some time, Govt. of India, the owner of
PSBs, has advised the Banks vide their communication dt 22.11.2022 to put a check on
this menace. Some of the banks have already advised their field functionaries on the
similar lines, but as far as, our knowledge goes our Bank, so far, has not issued any
directions in this regard, the reasons best known to them.

We had a meeting with our worthy MD & CEO, who categorically said that our Bank
Management is not at all in favour of mis-selling or adopting unethical practices while
canvassing for Third Party Products. Our MD & CEO also agreed with us that there is a
need to have a Campaign Calendar to focus on specific task during the particular period,
rather than the current madness of having 20 to 30 Campaigns running concurrently. We
are disturbed to note that despite the MD & CEO’s directions there are no efforts down the line to
check this mess. Consequently, all these parallelly running campaigns are consuming most of the
working hours of branch functionaries in the process of regular reporting and follow up, apart from
physical and psychological harassment.

We note with serious concern that many Regional Heads are putting undue pressure on
our officers either to cover up their failure in achieving core business or for incentives
provided by the Third Parties and also for enjoying attractive holidays within the country
or abroad or gifts sponsored by these Companies. Such Executives pressurize the branch
functionaries to achieve specific daily targets and they are instructed not to do day end without
achieving the same and having no concern for timely closure of Branch’s public operation.
Interestingly and ironically, on most occasions many Branch Heads do not qualify for incentive
tours for their contribution, but their Regional Head qualify for the same because of the collective
contribution of such Branch Heads. When we discussed this issue with some of the Regional /
Zonal Heads, they complained that even they are under pressure from the respective Vertical
Heads (hired directly from outside without banking experiences and concern for Bank’s Core
Business). We are continuing to follow up with the top Management and shall take up this burning
issue in our next Structured Meeting (which is overdue) at Corporate Office.

Unfortunately, some of our members as Branch Heads, under fear of their transfer, toe the line of
their Regional Head and pressurize the staff members and advance customers to take such
policies, irrespective of the qualities of the product. We must clarify that Mis-selling means to sell
wrong products to people or even selling a good product to a customer who does not need or
cannot afford. Bank should go for feedbacks from such persons, to whom such products have
been sold under pressure, to get a real picture of this Third Party business.

MoF had once issued a circular letter dated 15.02.2015, wherein it was advised that a Bank
should not adopt restrictive practice of forcing customers for getting insurance from a
particular company. It was also conveyed that CVC (Central Vigilance Commission) has
raised objection as incentives for selling insurance products, brings not only pressure on
the field staff but the core business of Banking gets effected and secondly, quality of
advances may get compromised in the lure of commission and incentives for staff.

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aiboboa.com aiboboa @aiboboa Aiboboa1964 aiboboa “AIBOBOA”
ALL INDIA BANK OF BARODA OFFICERS’ ASSOCIATION
(CENTRAL OFFICE)
Registered Under Indian Trade Union Act. 1926 & Recognized by Bank
(Affiliated to INTUC and INBOC)
President: R. K. Chatterjee C/O Bank of Baroda
General Secretary : Prem Kumar Makker 3, Walchand Hirachand Marg
Email : aiboboa1964@gmail.com Ballard Pier, Mumbai-400001
Website : aiboboa.com Phone : 022-22618484, 49793233

In tune with the above stated guidelines, MD & CEOs of Banks were requested to issue
suitable instructions to vertical concerned of the Bank for putting in place a robust
mechanism for avoiding any unfair and unethical practices adopted by Bank and the
franchise Life Insurance Companies for procuring life insurance policies from a particular
company. It will be pertinent here to mention the communication dated 22.11.2022, issued
by DFS, MoF, GoI to all PSBs on alarming increase in the number of complaints arising out
of restrictive practices of forcing customers for taking Life Insurance Policies. It was
categorically advised to all the PSBs not to force-sell insurance products to customers
and said such practice impacts the Bank’s Core Business. This step by MoF was in
response to the complaints received by them that ‘Fraudulent and Unethical practices are
being adopted by Banks and LICs (Channel Partners) for procuring Life Insurance Policies
from the Bank Customers’.

Friends, another concern is that most of the time of the branches is spent in achieving these Third
Party business targets (under duress from Regional Authorities) where the income is very meager
in comparison to the efforts put into by us and unfortunately, the respective Regional Head forgets
all these pains suffered by the branch functionaries and ask explanations on the performance on
the core business parameters at the end of quarter/year. Compliance area also get overlooked or
neglected as most of the time is spent in achieving these daily Third-Party targets and various
reporting till the day end. Branches are under severe strain of continuous monitoring from their
respective controlling offices including the representatives of the companies (Third Party
Products) who are so emboldened, now a days, with the backing of some Regional Head that
they, crossing their limit, even threat the branch functionaries directly which is highly objectionable
and not acceptable. Such outsiders have no right to demoralize and demotivate our work force.

Considering the above stated facts and challenges, we must judiciously focus on our core
business and compliance area and also put reasonable effort to cross sell the Third Party products
to help us earn some fee-based income. As the score for Third Party Product sale in GEM is 15%,
we should put the same percentage of effort /energy in that area. As far as, threat of transfer on
such ground is concerned, we have always been taking up with the management concerned and
expect officers also not to do anything unethical for fear of the same. Friends, we need to focus
on our core business areas which is our prime responsibility.

We wish you all the best in your business endeavours, where all of you must walk an extra
mile as this is the last quarter of the Financial Year 2022-23. We all must be enthused and
proud to see that our Bank’s Business is growing (INR 20,73,385 crore as of 31.12.2022
registering a growth of 18.5% YOY) as well as the increasing Profit (Net Profit INR 3853
crore for Q3/FY23 up by 75.4% YOY), and consequently, BOB is India’s second largest PSB
as per total business. We are confident with your unstinted support and commitment
towards our Bank, we will be maintaining this trend of growth in future.

Please don’t let anyone demoralize you and be proud to be part of growth journey of the
BANK WHICH IS BEING DRIVEN BY NONE OTHER THAN ALL OF YOU.

Yours sincerely,

R.K.CHATTERJEE PREM KUMAR MAKKER

PRESIDENT GENERAL SECRETARY

PLEASE CIRCULATE AMONGST ALL OFFICERS

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