SBI may soon make some changes to attract new customers and increase deposits. Many banks have increased interest rates on deposits to woo customers ahead of the festive season.
State Bank of India (SBI) is preparing to make important changes in its savings, current and salary accounts. The bank has planned to make complete changes in many of its other schemes keeping in view the change in the interests of the people along with the way of banking.
State Bank of India is planning to improve its current, savings accounts (CASA), salary accounts and transactional schemes. This scheme is being implemented at a time when there is a continuous decrease in the deposits of banks, but the number of borrowers is increasing. Several other banks have also raised interest rates on deposits to woo customers ahead of the festive season.
What changes are you planning
According to media reports, SBI wants to hire an external consultant for this. The consultant will try to develop new banking modalities with various internal business units and teams of SBI. At present, the bank wants to appoint this advisor for a period of 12 months. If needed, its tenure can be extended by one more year.
Public sector banks are facing tremendous challenge from private banks these days, so the bank wants to ensure that its products and schemes are better than other banks. Many banks have offered high interest rates on deposits for a limited period to lure customers ahead of the festive season.
Preparing to raise CASA deposits
Banks prefer low cost deposits. Whereas no interest is paid on current account deposits. The savings account interest rate of most banks is less than 4%, while the interest rate on FDs is 6% or more. SBI’s CASA deposits (current and savings account deposits) by June 30 had crossed Rs 17 lakh crore. Whereas FD deposits have grown by 9.3% in the same period and have increased to over Rs 21.3 lakh crore.
Bank will add new customers
SBI is encouraging customers to make more deposits. The bank is looking for customers who can open new high value savings accounts. The bank also plans to improve its relationship with its existing customers.
