Top Story: IDBI Bank waives service charges on current and savings accounts

IDBI Bank has waived all charges on a host of services for its current account and savings bank account (CASA) customers in a bid to grow low-cost deposits, retain customers and attract new ones. The waivers are for ATM interchange fee and charges related to average balance, cheque book, demand draft, electronic funds transfer, electronic clearing service, account statement and others.

The bank expects this waiver strategy to help boost its low-cost CASA deposit base to around 20 per cent of the total deposits in the next six months, from 13 per cent now. Mr R.M. Malla, CMD, said the fee ceded due to waiver of service charges on CASA accounts will be recouped through gains in business volumes.

Meanwhile, the Bank is considering tapping the equity market in 12-18 months. The bank now has the headroom to tap the market as it recently received capital injection of Rs 3,011 crore from the Government.