PSU Banks Push For Fee Based Income

Public sector banks are struggling to hold on to market share and in doing that they are trying to lure customers by offering more than just withdrawals and deposits.Bank of Baroda (BoB) has become the latest public sector bank to aggressively push non-banking services through its extensive branch network. Over the next 6-12 months Bank of Baroda will start selling insurance products through its branches as part of its life insurance JV.

BoB will also offer wealth management products through its asset management subsidiary and also plans to get in the mutual fund business by the end of this year Our major priority is to increase fee based income for bank. We are getting into offering a full suite of services, we are getting into life insurance, wealth management etc, said Anil Khandelwala, CMD, Bank of Baroda.