No more commission for PSB staff for cross-selling products

MUMBAI: In what could put State Bank of India and other public-sector banks at a disadvantage over private sector banks, the government has asked PSBs not to pay commissions to employees for cross-selling products, and collect the funds as incomes for the banks themselves.

This could dissuade PSB employees from cross-selling products such as insurance or mutual funds as banks will stop paying cash incentives, rewards and recognition for meeting targets on third-party sales.

“Commission on this business should be paid to the bank and should be its income

.” SBI, the biggest bank, has seen income from fees grow 10.51% and cross selling income rise 78.33% during the last financial year. SBI crosssells products of SBI Life Insurance, SBI Mutual Fund, SBI General, SBI Cards, SSL and NPS. It had earned income of `1,631 crore in the last financial year. It embarked on the path of higher fee income inspired by Sandy Weill model of banking way back under OP Bhatt’s chairmans ..