Public sector banks (PSBs) that showed immense interest in selling the new pension system (NPS) have not quite been able to deliver on selling retirement planning to Indians. While ICICI Bank and Kotak Mahindra Bank lead the race with maximum subscriptions, six PSBs have not opened even a single NPS account.
Out of the 1,371 subscriptions that NPS has been able to collect since it was launched on May 1, private banks and financial institutions have accounted for 1,288 (or 94 per cent) of these collections.
Among the 11 PSBs, selected by Pension Fund Regulatory and Development Authority (PFRDA) to distribute NPS, only State Bank of India has been able to get a fair number — with 57 subscriptions it has a 70 per cent share among its peers.
Allahabad Bank managed 14 subscribers, while State Bank of Hyderabad managed 10. Central Bank of India and State Bank of Mysore managed to open their accounts with one subscription each.
Oriental Bank of Commerce, Union Bank of India and four State Bank of India subsidiaries did not get a single subscription.
“We are watching their performance,” a senior official told Hindustan Times. “But it is early days and we will give them a lead time. If they are not able to perform we will take a decision on whether we want to continue with them.”
PFRDA called for representatives of all the 21 sellers of NPS on Tuesday. “We have asked them to come out with a business plan and a timeline,” the official said. “We have asked them to make NPS available through all their computerised branches.”
ICICI Bank leads the race for NPS subscription as it managed to bring in 264 subscriptions of the total 1371.