The private sector bank, Kotak Mahindra Bank, has recorded a growth of 68 percent in its savings bank account segment in the first quarter of this fiscal. The Executive Vice President of Kotak Bank, Mr. Virat Diwanji announced the increase in bank's savings account deposits and said that in Q1 of the fiscal the bank has recorded Rs. 5, 540 crore worth of deposits in its savings accounts, a jump from Rs. 3, 307 crore it reported a year ago.
The high mobilization in the banks savings accounts segment could be as a result of the deregulation of savings accounts by Reserve bank, post which Kotak Bank started offering increased interest rates in this segment.
It is to be noted that RBI had deregulated the interest rate limits on savings accounts last October following which many private sector banks which had low savings account deposits increased their interest rates in this segment to improve their growth in the segment.
The first among the private bankers to increase its savings accounts interest rates was Yes Bank, which increased its rates to 6 percent, the same day in which RBI announced the deregulation. Yes Bank was followed by many lenders including Kotak Bank and Saraswat Bank.