The banks are under constant pressure of finance ministry to reduce their bulk deposits. Punjab National Bank (PNB), the second largest public sector bank is also planning to reduce its bulk deposits to meet the deadline of March 31, 2013.
Bank's chairman and MD Mr. KR Kamath said that the bank would be replacing some of its bulk deposits with retail fixed deposits. According to a recent Deutsche Bank report, the PSB needs to cut on its bulk deposits by about 5-7% to meet the deadline.
Kamath further added that the bank can only reduce the base rate once the cost of funds go down. He also denied any near future possibility of bank introducing a floating rates term deposit (FRTD) like IDBI Bank. But maintaining if the conditions become favorable the bank may consider the option.
The bank inaugurated its self service branch 'Pragrati' which would offer services like ATM, cheque and cash depositing, and pass book updating machine.
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