IDBI Bank a public sector lender has waived all charges on a host of services for its current account and savings bank account (CASA) including ATM interchange fee and charges related to average balance, cheque book, demand draft, electronic funds transfer, electronic clearing service, account statement and others.
The bank has waived the charges in order to increase its low-cost CASA deposit base to around 20 per cent of the total deposits in the next six months, from the current 13 per cent. Bank also aim to attract new customers and retain the existing customers through this waive scheme.
With the waiver of service-charge bank customers will be able to access ATMs of other banks any number of time without paying a fee.
The other waived off charges are new card fee, new card issue, cash service, pay order, stop payment, account closure, demand draft issue and cancellation and standing instruction.
Mr R.M. Malla, CMD, said the fee revenue loss due to waiver of service charges on CASA accounts will be earned through gains in business volumes.
Mr Malla said, “We would rather earn fees on the assets side of the balance sheet by syndicating a Rs 5,000-crore loan and earn Rs 50 crore fees than go after small charges on the liabilities side. Large corporates, mid-corporates and SMEs know us very well. We want to be known as a universal bank that caters to the financial needs of the common man.”
IDBI Bank is also planning to tap the equity market in 12-18 months as it has received capital injection of Rs 3,011 crore from the Government.