Deregulation of savings account rates has been on the cards since quite some time. Bankers have not been very satisfied with the issue. Recently CMD of Punjab National Bank, Mr K R Kamath said that if deregulation of savings bank rates sets in then the entire structure of interest rates for banks will be destabilized.
"SB (savings-bank) rate is the anchor on which we build all our interest rates and if you destabilise it and allow it to float then it will destabilise the entire rate structure in the short run," Mr Kamath said while speaking at the FICCI -IBA summit.
"There is a need to deregulate the SB-account product as a whole. For instance, if the SB rates are deregulated but if a bank puts a cap saying that a customer will have to maintain a certain minimum balance to get attractive rates then it (the deregulation) will defy the purpose," he added.
Talking about the recruitment drive of Punjab National Bank, he said, "We plan to recruit 3,000 officers and 6,000 clerks. We have started the hiring procedure but the process may spill over to next year."