“We bankers are so pressurised that we were forced to mis-sell. I think that was the main issue that led me to leave the bank as well.”
That is how Chirag Madaan, a 24-year-old graduate from Indian Institute of Information Technology (IIIT), explained his decision to quit a Rs 17 lakh a year banking job, in a .
The viral Instagram post has resonated with many. It also points to a problem that extends beyond one individual’s experience.
IndiaToday.in had earlier reported how what customers are offered at bank counters, often pushing insurance and investment products even when they may not be the right fit.
Our report highlighted that frontline banking roles increasingly resemble sales jobs rather than advisory ones. More than 84% of relationship managers surveyed said they face strong pressure to meet sales targets.
Over 57% admitted they had been asked to sell products “at any cost”, even if unsuitable.
For many employees, failing to meet these targets comes with consequences. More than half said they had feared losing their job at some point for missing targets. Others described daily reviews, public reprimands and stalled career growth.
This is the pressure Madaan refers to.
When targets become the primary metric, the line between financial advice and product selling begins to blur. In some cases, it .
The products most often pushed are not incidental. Insurance policies, mutual funds and bundled financial products have become a major source of fee income for banks. In FY24 alone, the top 15 banks earned over Rs 21,773 crore in commissions from selling such products.
Much of this is driven by bancassurance arrangements, where banks act as distribution partners for insurance companies. Banks accounted for over a third of insurance premiums in FY24, making them one of the largest sales channels for such products.
These business incentives translate into internal targets that move down the hierarchy, from senior management to branch managers and ultimately to relationship managers who interact with customers.
At the customer level, this often determines what gets recommended.
The problem is compounded by gaps in product understanding. According to the 1 Finance survey cited in our previous report, 85% of relationship managers said they did not know the difference between direct and regular mutual funds. Nearly all said they could not distinguish between nominal and real returns.
Yet, they are expected to sell complex financial products.
Industry observers say this combination of high pressure and limited product understanding creates conditions where unsuitable products are frequently recommended.
The consequences typically emerge later. Nearly half of life insurance policies are discontinued within five years. Customers often exit because they cannot sustain premiums or because returns fall short.
In many cases, they lose a part of their investment.
Madaan’s exit has brought the issue of rampant mis-selling at banks back into public conversation.
But the pressures it highlights, of targets, incentives and the risk of mis-selling, .
(IndiaToday.in reached out to Madaan for comment. He had not responded at the time of publication. The story will be updated if he responds.)