IDBI Bank’s plan to garner higher current account and savings account (Casa) deposits by waiving service charges has paid off.
The Casa ratio, of these deposits to the total, rose to 21.9 per cent as on September, compared with 15.3 per cent at end-September 2010. It had decided to waive service charges on September 1, 2010. Casa deposits now are Rs 39,507 crore of the total deposits of Rs 180,087 crore.
Chairman and managing director R M Malla said they were targeting a Casa ratio of 27 per cent of total deposits by the coming March. Growth in savings accounts has been steady. But current accounts, operated by company and commercial outfits, have seen volatility, he said.
The bank’s Casa ratio is still lower than its peers, being a new entrant among public sector banks. Besides, it carries the legacies of being a project funding institution in the past.
The bank intends to continue with not imposing service charges. Last December, it had imposed limits for Casa holders. Also, charges on automated teller machine (ATM) usage and demand drafts. Only the first five transactions in other bank ATMs in a month will not be charged.
Similarly, savings bank account customers will not be charged for the first few demand drafts, depending upon the account type, in a month.
The bank also has cash abuse charges for current account customers. But according to the bank, these charges are to arrest misuse.
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