IDBI Bank waives service charges on current and savings accounts

IDBI Bank waives service charges on current and savings accounts















Source:Business Line Bureau:Mumbai: Sep 2,2010

IDBI Bank has waived all charges on a host of services for its current account and savings bank account (CASA) customers in a bid to grow low-cost deposits, retain customers and attract new ones.

The waivers are for ATM interchange fee and charges related to average balance, cheque book, demand draft, electronic funds transfer, electronic clearing service, account statement and others.

The public sector bank expects this waiver strategy to help boost its low-cost CASA deposit base to around 20 per cent of the total deposits in the next six months, from 13 per cent now.


One of the highlights of the service-charge waiver is that the bank's customers will be able to access ATMs of other banks any number of time without having to pay a fee.
The other charges that have been removed for CASA customers relate to new card fee, new card issue, cash service, pay order, stop payment, account closure, demand draft issue and cancellation, and standing instruction.


Mr R.M. Malla, CMD, said the fee ceded due to waiver of service charges on CASA accounts will be recouped through gains in business volumes.



“We would rather earn fees on the assets side of the balance sheet by syndicating a Rs 5,000-crore loan and earn Rs 50 crore fees than go after small charges on the liabilities side. Large corporates, mid-corporates and SMEs know us very well. We want to be known as a universal bank that caters to the financial needs of the common man,” said Mr Malla.



Meanwhile, IDBI Bank is considering tapping the equity market in 12-18 months. The bank now has the headroom to tap the market as it recently received capital injection of Rs 3,011 crore from the Government.