While banks do not pay interest on current accounts, savings accounts deposits attract only 4 % interest. But even the State Bank of India Monster now offers seven % of the deposits of six months. According to the Reserve Bank of India, deposits fell by 2 % on July 2 a year, while deposits increased 21 % in the period.

The result is an alarm. Public sector lender IDBI Bank and UCO Bank, which has a lower proportion of the Casa of total deposits, have launched a campaign to get deposits cheaply. Mangalore-based Corporation Bank will do the same by launching a program next week to raise Casa.

"We plan to launch the program, due to rising costs of deposits. Deposits House will allow us to meet our needs at a low cost," said President and CEO Ramnath Pradeep. The plan was executed at least one month, he said. Casa ratio of the bank is 21 %, much lower than their peers.

In addition, the payment of fees, the bank also offers accident cover up to Rs 1 lakh. The banks are given incentives to work to drive. The Bank is also working on add-on to the customers agreed to invest in recurring deposit up to a year.

A senior official of a large public sector banks said that the bank is expected to announce more such systems, such as competition intensifies to attract low cost deposits.

Source: [business standard]