City Union Bank has decided to hold off plans to revise its interest rates on savings bank accounts.
'We are waiting for the big banks to decide their rate of interest on savings bank accounts so that we can tailor our offering. Till now, different banks have taken a call to offer interest between 3.5 percent and 6 percent,' said the bank's managing director and CEO N. Kamakodi told.
He said at an average, the rate increase is expected to be between 1.5 and 2 percent.
Kamakodi said that out of the bank's total deposits of Rs.14,722 crore, the savings account comprised 10-12 percent and the current account around 8 percent. The balance is contributed by term deposits.
According to him, the bank is focusing on tier-two cities for expanding its branch network as such a move does not need RBI's licence.
Do you know more about this story? Contact us anonymously through this link.