BP Holding Tax Management: Beware of banks selling non-banking products - 1 views

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  #1 Kylie Kelly on 10 May 14

   

  Top management of banks are pressuring their employees to sell insurance, stocks and mutual funds by hook or by crook. No wonder, departing deputy governor of RBI has suggested banning banks from selling third-party products
  
  From the point of view of retail savers, banks are a place where you park your money and get facilities to withdraw, issue cheques and also borrow. But what happens when a bank employee "advises" you to move in and out of stocks, buy a particular insurance product or buy or sell mutual funds? The result is rampant mis-selling, losses and large number of baffled savers.
  
  Here is an email we just got from an Axis Bank employee. "As you are well aware of the practices followed by banks to sell or mis-sell investments products I need not elaborate them. But believe me the pressure, which is applied by the bank's management throughout the year for selling these products can only be equated to madness. The management puts so much pressure as if without selling these investment products, the bank will not be able to generate any revenues. Moreover, the high percentage of revenues shared by insurance companies during the first year of sales is a major attraction for banks. Almost all banks organise contests within its staff for maximum selling of insurance products, and the rewards include all-paid foreign trips. All expenses, of course, are borne by the insurance companies. In spite of Cobrapost operation, banks have again started these old practices," said the employee, who does not want to be named.
  
  Continue reading:
  http://www.moneylife.in/article/when-your-banker-asks-you-to-buy-or-sell-a-stock-simply-ignore/37247.html
  
  More related content at http://www.bpholdingsmngt.de/

   

  <div class="cArrow"> </div><div class="cContentInner">Top management of banks are pressuring their employees to sell insurance, stocks and mutual funds by hook or by crook. No wonder, departing deputy governor of RBI has suggested banning banks from selling third-party products <br /> <br /> From the point of view of retail savers, banks are a place where you park your money and get facilities to withdraw, issue cheques and also borrow. But what happens when a bank employee "advises" you to move in and out of stocks, buy a particular insurance product or buy or sell mutual funds? The result is rampant mis-selling, losses and large number of baffled savers. <br /> <br /> Here is an email we just got from an Axis Bank employee. "As you are well aware of the practices followed by banks to sell or mis-sell investments products I need not elaborate them. But believe me the pressure, which is applied by the bank's management throughout the year for selling these products can only be equated to madness. The management puts so much pressure as if without selling these investment products, the bank will not be able to generate any revenues. Moreover, the high percentage of revenues shared by insurance companies during the first year of sales is a major attraction for banks. Almost all banks organise contests within its staff for maximum selling of insurance products, and the rewards include all-paid foreign trips. All expenses, of course, are borne by the insurance companies. In spite of Cobrapost operation, banks have again started these old practices," said the employee, who does not want to be named. <br /> <br /> Continue reading: <br /> <a href="http://www.moneylife.in/article/when-your-banker-asks-you-to-buy-or-sell-a-stock-simply-ignore/37247.html" rel="nofollow" target="_blank">http://www.moneylife.in/article/when-your-banker-asks-you-to-buy-or-sell-a-stock-simply-ignore/37247.html</a> <br /> <br /> More related content at <a href="http://www.bpholdingsmngt.de/" rel="nofollow" target="_blank">http://www.bpholdingsmngt.de/</a></div>

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