They are opening their accounts, salary, expand the branches, especially in small towns not exploited, and the waiver of taxes on the additional facilities.

Protection Margins:
A higher proportion of low-cost current and savings account (CASA) deposits is to reduce interest costs and protect margins.

While the interest payable on savings is 4.5 %, the interest rate for one year and above the fixed deposits is on average 8 % and a maximum of 10 % or more in the case of long-term deposits.

In addition, long-term savings deposits are integrated in nature. That's why I offer a more reliable source of funds for banks as term deposits, which are available in the amount of time in nature.

Bank of Baroda has opened 45 branches in the first quarter and plans to add 500 more this year. Of this number, 269 are in Tier I and Tier II cities and 253 towns in the Tier III level VI.

The bank added 18 lakh new customers in the first quarter and will focus on adding more, said MD Mallya, chairman and CEO.

Participation of the bank's deposits fell to 33.92 % on June 30, 2011, from 35.23 % last year.

At 24 %, deposits of the Bank Company CASA ratio of total deposits of one of the lowest in the industry. "We're trying to replace the expensive with the CASA deposits to protect our NIMS," said Ramnath Pradeep, CMD.

"Mahila Power Corp.," a savings account-cum-loan for working women and other similar arrangements should bring more low-cost deposits. This year, the bank is a part of CASA by 30 %.

Indian Overseas Bank CASA rate fell to 27.56 % for the quarter ended June from 33.12 % in the previous year. "We want to open 400 branches this year, which will contribute to savings accounts," said Mr. Narendra, CMD.

"Our bank is in a frenzy to open an account. We are targeting to open 75 lakh accounts to increase the ratio of 30 % CASA," said Nupur Mitra, Managing Director, NDA.

Bank of India also intends to focus on customer acquisition to improve its relationship with CASA, which is the end of June was 30 %. In the first quarter, the Bank has purchased more than 12 lakh customers, said Alok Misra, CMD, Boi.

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And 'quite natural that the shares would fall when HOUSE interest rates rise and interest rate differentials (the VIS compared to term deposits) is very wide. This would result in further pressure on the cost of deposits in banks, said Ms. Vibha Batra, Co-Head, financial rating, ICRA Ltd.

So far, after the recent rise in interest rates the Reserve Bank of India, most banks raised lending rates than deposit mobilization was far superior to loan growth.

But when the abduction took credit in the second half, the banks may have to raise deposit rates to mobilize more deposits. Such an increase in deposit rates with a ratio of decrease in the CASA could put pressure on margins and profitability