SBI Suspends Business Conclaves, Seminars, Felicitation Till March 31
Recognition for employees from value-added services will be subject to the performance of core business parameters
State Bank of India has directed senior employees across circles to not organise business conclaves, seminars or felicitation ceremonies till the end of FY24, according to an internal memo reviewed by NDTV Profit.
"Any deviation in this regard will require prior approval" of the bank's retail business and operations head, the memo signed by Managing Director Vinay Tonse on Dec. 28 said. These changes come into effect immediately, and apply to the third parties associated with SBI.
SBI has a bancassurance pact with SBI Life Insurance Co., and SBI General Insurance Co. For the sale of mutual funds, the bank is in a joint venture with SBI Mutual Fund Trustee Co.
Further, recognition for employees from customer value enhancement business unit will be subject to the performance of certain core business parameters, SBI's memo said.
NDTV Profit had earlier reported that some SBI employees are being rewarded with silver coins, freebies, and even one-day excursions for meeting or exceeding the target on sale of third-party products.
However, SBI's memo is not linked to curbing mis-selling of insurance products, a person with direct knowledge told NDTV Profit.
According to the person quoted above, the decision to suspend business conclaves or felicitation ceremonies is aimed at reducing distractions for employees before the year ends. With this message, the bank's senior management is aiming for greater focus on the core business, while continuing third party sales, this person said.
Typically, these types of messages are shared one-on-one by senior management with regional heads at banks. However, since SBI is a large organisation with multiple business heads, and because there is a need to have strict adherence to the new policy, a memo has been sent out, according to the person quoted above.
As of Sept 30, SBI's gross advances rose 12.4% year-on-year to over Rs 34 lakh crore. Deposits for the lender were at nearly Rs 47 lakh crore, up 12% year-on-year. Net interest income in the second quarter rose by over 12% to Rs 39,500 crore, while fee income was up 10% to Rs 6,536 crore.
Gross non-performing asset ratio was at 2.55%, while net NPA ratio fell to 0.64%.
