The private sector bank, Kotak Mahindra Bank, has said that it is not planning to lower its savings account interest rates, at least for the next six months. The bank is offering interest rates of 6 percent per annum for accounts having a daily average balance of Rs. 1 lakh and 5.5 percent interest rates for accounts having a daily average balance of less than a lakh.
The announcement comes after a series of rate cuts by other banks. It is to be noted that the bank is recording an annual growth of 68 percent in the savings bank segment, due to its interest rate policy and other benefits in the said segment, after the deregulation of savings accounts interest rates by the central bank. The bank is providing its customers additional benefits on savings accounts such as cash back and discount options.
On the matter, the Mumbai based bank's Executive Vice President and Head (branch banking), Mr. Virat Diwanji said that the bank will continue to offer 6 percent interest rates on savings bank accounts for the next 6 months.
It is reported that the bank has savings bank accounts worth Rs. 5540 crore at the end of June 30, 2012. The high interest rates that it is providing on CASA (current account savings account) segment are considered to be the reason of its 34 percent annual growth in the segment.