Mumbai: Private sector lender Kotak Mahindra Bank is unlikely to reduce its savings bank deposit rate this fiscal, a top official said Thursday.
"We will maintain the 6 percent rate for some time. We have no plans to change the rate this fiscal," president for consumer banking KVS Manian told reporters on the sidelines of a bank event here.
He said the bank has more than doubled its savings account base over the last 18 months, ever since the Reserve Bank deregulated interest rates on the product helping it tap into the market with an aggressive offering.
The savings account deposits have grown to Rs 7,500 crore as against Rs 3,500 crore at the time of the RBI move, he said, adding the base is showing a growth of up to 50 percent on a yearly basis.
Kotak Bank and its rival Yes Bank, among the last bank licencees to start operations in 2003 and having a low base of the low-cost current and saving deposits, are two of the most aggressive banks on the savings accounts front.
As against the 4 percent given by the most others, Kotak offers 6 percent per annum on a savings account with a balance of over Rs 1 lakh and 5.5 percent for deposits under Rs 1 lakh, Manian said.
The bank's total current account and savings accounts deposit base had stood at 29 percent as of end of the last fiscal, as against over 40 percent seen in bigger banks.
With a view to augmenting the CASA base, the bank today launched a special account for children to be operated by parents. The account can be linked to a recurring deposit account or an systematic investment plan offered by Kotak's asset management company.
Account holders will have to maintain a balance of Rs 5,000 in the account, which is waived if they opt for a deposit of Rs 1,000 per month in either the RD or SIP scheme.
Manian said the bank is targeting to open at least 4,000-5,000 such accounts per month and added that this will help grow the "stickiness" of saving bank deposits.
Kids above 12 years will be given a debit card even though the parents will continue to operate the account, he said, adding once the child attains the age of 18 years, the rights over the account will automatically get transferred in in his/her name.