Banks on Casa rescue drive
With fixed deposit offer 9.25 to 9.5 % for two years, banks see a slowdown in current account / savings (Casa) deposits. Since it is the low anchor, he is afraid and therefore, banks are now offering free services to increase this share to protect their margins.
While banks do not pay interest on current accounts, savings accounts deposits attract only 4 % interest. But even the State Bank of India Monster now offers seven % of the deposits of six months. According to the Reserve Bank of India, deposits fell by 2 % on July 2 a year, while deposits increased 21 % in the period.
The result is an alarm. Public sector lender IDBI Bank and UCO Bank, which has a lower proportion of the Casa of total deposits, have launched a campaign to get deposits cheaply. Mangalore-based Corporation Bank will do the same by launching a program next week to raise Casa.
“We plan to launch the program, due to rising costs of deposits. Deposits House will allow us to meet our needs at a low cost,” said President and CEO Ramnath Pradeep. The plan was executed at least one month, he said. Casa ratio of the bank is 21 %, much lower than their peers.
In addition, the payment of fees, the bank also offers accident cover up to Rs 1 lakh. The banks are given incentives to work to drive. The Bank is also working on add-on to the customers agreed to invest in recurring deposit up to a year.
A senior official of a large public sector banks said that the bank is expected to announce more such systems, such as competition intensifies to attract low cost deposits.
Source: [business standard]
Processing your request, Please wait....
