Private sector IDFC First Bank has surprised 7% interest on deposits of less than Rs 1 lakh on savings accounts. The bank has implemented this increase from January 1, 2021 only. Earlier, the bank was paying 6 percent interest on deposits up to Rs 1 lakh.
Private sector IDFC First Bank has surprised 7% interest on deposits of less than Rs 1 lakh on savings accounts. Not only this, it has also given tough competition to its rival banks.
The bank has implemented this increase from January 1, 2021 only. Earlier, the bank was paying up to 6 percent interest on less than one lakh amount. It is worth noting that most banks pay 3 to 4 percent interest on savings accounts.This interest is on deposits up to 1 crore. After this, the bank is paying 5 percent on deposits ranging from Rs 1 crore to 5 crore, 4 percent on deposits ranging from 5 to 10 crore and 3.50 percent on deposits above Rs 10 crore.
Lower interest rate in other banks
Significantly, the interest on deposits in the country’s largest bank State Bank of India is just 2.70 percent. Similarly, the interest rate on savings account in private sector HDFC Bank and ICICI Bank is 3 to 3.5 percent.
Tremendous growth in customer deposits
Probably because of the high interest rate, IDFC First Bank’s customer deposits grew by a tremendous 41 per cent in the quarter ended December 2020 and reached Rs 77,289 crore. The bank’s customer deposits stood at Rs 54,631 crore as on December 31, 2019.
During this period, the bank’s CASA account current account savings account has increased by 44.6 percent, while in the quarter of December 31, 2019, it had increased by 20.9 percent.
Minor increase in debt distribution
In December 2020, IDFC First Bank’s credit disbursement increased marginally by 0.7 percent and reached Rs 1,10,499 crore. The bank’s loan account stood at Rs 1,09,698 crore in December 2019. Compared to the quarterly quarter ie the September quarter, the bank’s loan account has grown by about 3 percent.
Similarly, the bank’s retail funded assets increased to Rs 66,635 crore in the December quarter, an increase of 24.1 per cent over December 2019.