Banks up the ante on deposit drive

From offering insurance cover to enhancing customer engagements and higher rates, commercial banks are devising multiple strategies to mobilise deposits following a nudge from Reserve Bank of India Governor Shaktikanta Das.

- SUBRATA PANDA & HARSH KUMAR

Das called for product innovation and full utilisation of branch networks to raise resources.

At a post-Budget press meet in New Delhi last week, Union Finance Minister Nirmala Sitharaman had also urged banks to devise innovative schemes to boost deposit mobilisation.

State-run Canara Bank is set to launch two new deposit products in October, targeting the younger population, particularly those enrolled in professional courses.

The Bengaluru-based bank is also offering term life insurance to savings account holders and a zero-balance savings account facility for the entire family if one member's salary is drawn from the bank.

It has tied up with medicine aggregator 1mg to offer senior citizens discounts on purchases.

"People these days do not keep large sums in their savings accounts.

Anytime they can invest or liquidate with the help of digital channels. Under such circumstances, only rate of interest cannot attract low cost deposits (savings and current account deposits).

So banks need to offer more," said K Satyanarayana Raju, managing director (MD) and chief executive officer (CEO) of Canara Bank.