Private sector IDFC First Bank has surprised by paying 7% interest in deposits of up to Rs 1 lakh on savings accounts. The bank has implemented this increase from January 1, 2021 only. Earlier, the bank was paying up to 6 percent interest on savings accounts.
Private sector IDFC First Bank has surprised by paying 7 percent interest in deposits of up to 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. Even before this, the bank was paying up to 6 percent interest on savings accounts. It is worth noting that most banks pay 3 to 4 percent interest on savings accounts.
Lower interest rate in other banks
Significantly, the interest on deposits of up to Rs 1 lakh in the country’s largest bank, State Bank of India, is only 2.70 percent. Similarly, the interest rate on private sector HDFC Bank and ICICI Bank savings account 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 increased by 20.9 percent.
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.
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