Indian Overseas Bank issues Explanation Call to Branch Manager Over Poor Mobile Banking Registrations

Again a shocking news has been reported from Indian Overseas Bank – a public sector bank. Indian Overseas Bank (IOB) has issued explanation call to one of its branches for recording an “inconsiderably low” number of registrations for its mobile banking application ‘IOB Connect’.

The letter stated that the branch reportedly registered only a negligible number of customers compared to its total active customer base.

The letter stated that the bank could not understand the reason for such low numbers, especially when the mobile banking product is fully functional. It criticised the branch for “casual approach” and failure to follow corporate instructions.

The bank has given the branch seven days to improve performance, warning that failure to do so will be treated as “intentional non-performance” and could lead to disciplinary action under OSR guidelines. The letter further stated that if there is no improvement, the bank will proceed with issuing a “charge sheet” against the branch manager.

This letter has once again raised an important question: Why can’t Public Sector Banks market their apps without pressuring their staff? Why do they create pressure on employees for every small target?

Fintech apps such as Paytm, PhonePe, and Google Pay have millions of downloads on the Google Play Store. These companies do not have physical branches, yet they have gained millions of users purely through digital channels. Why can’t Public Sector Banks do the same? Why is there a need to put pressure on staff?

Branches are already facing a staff shortage, and putting such pressure on employees is not a good practice. Banks should market their apps and products through digital channels and focus on the welfare of their staff.