Offers 6 per cent rate on deposits above Rs.1 lakh, says bank official
Kotak Mahindra Bank is focusing on attracting customers to open savings bank accounts with its 6 per cent rate on deposits above Rs. 1 lakh.
It is into its second phase of advertisement campaign which began last year and resulted in impressive growth, the bank’s Executive Vice-president and the head, branch banking Virat Diwanji told mediapersons here on Friday. It was only bank, along with three other private banks, offering six per cent on SB account savings. Most of the other public sector and private banks were offering only four per cent.
The bank had launched an aggressive advertisement campaign since June last year and in one year, the bank's SB account savings had risen from Rs.3,307 crore to Rs.5,540 crore. The ad campaign would continue to take the message to the public.
He said the bank had set up 382 branches and 866 ATMs in the country, with 20 of the branches being in Andhra Pradesh including the one here, and the number of branches would go up to 500 by the end of 2013. He said the first quarter performance of the bank was satisfactory, with profit after tax of Rs.282 crore and the NPA being only 0.78 per cent. He said the bank was offering all financial services under one roof, with the exception of general insurance.
Mr. Diwanji said the deposit base of the bank in AP was Rs.650 crore. "Our SB account savings have gone up from Rs.100 crore to Rs.162 crore in Andhra Pradesh in one year after the launch of the campaign. It is 62 per cent growth against the all-India average of 68. We want to improve our performance in the State," he said.
VAT through online
He said bank customers in Andhra Pradesh could pay VAT through the bank online. Such a facility was also available in Gujarat. Visakhapatnam branch manager K. Nageswara Rao also spoke.
On deposits below Rs. 1 lakh in savings accounts, the bank pays 5.5 per cent.