SBI is eyeing to finalize the listing of SBI Life Insurance in the coming 12-18 months. Chairman Arundhati Bhattacharya is of the view that by the end of the financial year, their foreign partner BNP Cardif will take a decision to increase stake in the life insurance joint venture.
Ms. Bhattacharya reported that there has not been any major impact on the business after demonetization. There has been very little impact. Their agency channel continues to perform well. She further added that currently only 30 per cent branches are active in terms of selling insurance products and the dream is to increase this number.
While the insurance regulator has permitted banks to sell insurance products of up to three insurers each in life, non-life and standalone health insurance, SBI is not in a hurry to join hands with other insurers. They will have to be sure what they are selling and training is an expensive activity. Primarily, it will be seen what they can offer with the help of this wealth management initiative.
In other news, following RBI’s directive on deposit of notes in excess of Rs 5000, she informed that it is important for them to get a definite information technology system in place in order to identify who has deposited how much. She added that work on IT system is taking some time and that it will be up and running in the days to come.
But, with respect to making India cashless, she announced that there should be a system of incentives and disincentives to ensure that people don't follow their old ways once cash is back in the system. There were several reports of employees of some banks endulging in alleged money laundering activities. Bhattacharya said that while some people are engaging in fraud, it is not right to paint everyone with the same brush.
The restrictions on cash withdrawal from banks and automated teller machines are anticipated to continue for some more time even as the window for depositing demonetized notes ends on December 30. Ms. Bhattacharya informed that she does not expect the restrictions to go overnight until the banks get more cash.
When asked whether banks are ready to meet the demand for cash if the restrictions are withdrawn, she said that they have to keep a track if there is cash available. If there is no cash, whether restriction or no restriction, she will not be able to give it.
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