The Mumbai based Kotak Mahindra Bank has recorded an increase in its savings accounts segment in the bank's branches in Tamil Nadu. It has a total of 19 branches in Tamil Nadu and plans to add another 3 branches in the state in the next 6 months.
The private sector lender issued a press statement which said that after Reserve Bank's deregulation of savings accounts interest rates, the bank started offering its customers two different rates - 6 percent for savings accounts balances more than Rs. 1 lakh and 5.5 percent for savings accounts balances less than Rs. 1 lakh.
The statement also said that the bank's dual interest rate policy for savings accounts balances is popular with the customers since it coordinated with after tax yield of fixed deposits of short to medium term maturities. In addition to this, the facility of tax free interest of up to Rs. 10, 000 per year in the savings bank segment has also added to the popularity of the bank.
It is reported that the savings accounts segment of the bank has hiked after RBI liberalized the interest rates for savings accounts last October. In Tamil Nadu alone, savings accounts deposits have increased by 45 percent to Rs. 263 crore, from the earlier Rs. 181 crore.