Page 6 - Banking Finance January 2020

BANK UPDATE

RBL Bank opens 26 ser- SBI strengthens customer relationship with ‘Atoot’
vice branches all over In- scheme
dia In a bid to strengthen its long-term relationship with employees, State Bank of
India (SBI) has introduced a scheme, ‘Atoot’, to provide
RBL Bank has recently announced immediate relief to the family of an employee dying in
that it is harness. This scheme includes financial support for the
opening 26 funeral expenses to the next of kin (NOK); support, in-
full services cluding embalming cost, cost of coffin, transportation
branches cost, in case death occurs at other places; and non-financial support, including
across vari- arranging for the stay of family members; keeping the body in mortuary/ ar-
ous states
range for preservation of the body till NOK comes; and making necessary ar-
while simultaneously achieving a rangements for the processing and transportation of the body.
milestone of 1,600 offices across
India. In case of sudden demise of employees, the bereaved family needs immediate
support, financial as well as for taking care of last rites/ funeral, which may also
The Bank plans to open 150 more of- involve transportation of the mortal remains of the deceased employee, the
fices (28 Branches & 122 BC bank said in a circular. “In the bank, apart from the superannuation benefits
Branches) this fiscal, taking the (pension, PF, gratuity) we also have provisions for ex-gratia (there is provision
count of offices to 1,750 by March for providing Rs 1 lakh ex-gratia in advance), compassionate appointment (if
2020. The Bank’s branches are pri-
eligible under the scheme), and cash compensation (in case of accidental death
marily located in metro, urban loca- while on duty).
tions while the BC Branches are pri-
marily engaged in delivering banking “However, these benefits take time to reach the needy family .... The bank is
solutions to the rural and semi-urban committed to take care of our employees and their family members, while they
areas. serve it and also after it,” according to the circular. The scheme will be appli-
cable to all regular employees of the bank.
RBL Bank currently serves 7.3 million
customers for a variety of retail as well
as wholesale offerings. All the Fin Min directs Central, state depts continue to do
branches opened today will be full ser- business with IDBI
vice branches offering a comprehensive
portfolio of banking product including Keeping the concern over the Central and state departments withdrawing de-
loans, working capital, current & sav- posits from IDBI Bank and also not offering fresh busi-
ings accounts, credit cards, fixed de- ness to the LIC-owned lender, the finance ministry has
suggested these departments to continue to do business
posits as well as locker facilities.
with IDBI Bank. The finance ministry has assured them
Surinder Chawla, Head, Retail Liabili- of the bank's ability to serve them as before because
ties and Wealth Management, RBL the present promoter LIC is fully owned by the government, and the national
Bank said, “This expansion marks a
insurer along with the government holds as much as 97.46% in the bank.
milestone of 1,600 offices for RBL
Bank and with these 26 full service "It has been brought to the notice of the department that pursuant to the 51%
branches going live today, we are stake acquisition in IDBI Bank by LIC, many Central/state government depart-
ready to serve new customers from ments and government agencies/institutions have either withdrawn their funds
these new locations. This is a step in or deposits from the bank or have not invited the bank to offer bids for depos-
the right direction in order to further its, or have expressed inability to continue grant of government business to the
enhance our customer centric and bank," the department of financial services said in a letter, dated December 17
relationship based approach. Our (RPT 17), to all the Central and state departments.
branches play a significant role in The letter, seen by PTI, said LIC is wholly-owned by the government and to-
growing our customer base and
gether with the government's holding of 46.46%, the direct and indirect gov-
strengthening our business franchise.”
ernment holding in the bank is 97.46%, making it a quasi-sovereign entity.

6 | 2020 | JANUARY | BANKING FINANCE