The largest lender of the country, State Bank of India, whose stand on revising savings bank account rates has been eagerly awaited by all has negated the idea of any such revision presently.
Speaking on the decision of the bank, Chairman, Mr Pratip Chaudhuri said, "We will not be amongst the first few. We will watch the other banks first. We do not have any immediate plans to hike the interest rates on savings bank accounts."
"Interest rate is not the only factor to open a bank account. A large number of people have multiple bank accounts... It all depends on quality of service and facility offered to them. The decision to hike interest rates on savings deposits has to be taken with great consideration and tabulation," said Chaudhuri.
Another top official of the bank commented, "The total deposits in SBI's savings accounts are to the tune of nearly Rs 3.5 lakh crore, and a hike of 1% in interest would mean that it would cost us Rs 3,500 crore, which will have to be passed on to the customers."