Its president and CEO of Anup Sankar Bhattacharya told ET: "" I do not feel the need to increase interest rates on savings deposits. ""

Reserve Bank of India has deregulated rates interest savings bank last week, prompting the small private bank which induces the Mind Bank, Kotak Mahindra Bank and Yes Bank to raise rates. Previously, the rate of 4%.

Induced minds of the Bank said it would offer the rate of 5.5% for the balance of RS 1 lakh and 6% more than Rs lakh. Kotak Mahindra Bank and Yes Bank raised points base rates of 200 to 6% for deposits of Rs 1 lakh.

Bhattacharya said the competition for a savings deposit mobilization will be largely limited to urban areas and the bank is to mobilize a majority of its deposit in the rural and semi-urban areas without much competition.

The Pune-based bank has 1.20 lakh crore state savings bank customers who have 1.14 core deposits below Rs 1 lakh.

Source: ET