Mr. Pratip Chaudhari - Chairman - State Bank of India

                                       Mr. Pratip Chaudhuri , Chairman , State Bank of India

Banks paying more than 4% on Savings Bank Deposits

The Reserve Bank of India (RBI) has deregulated the interest on Savings Bank (SB) Deposits. Before that RBI used to regulate the rate of interest that is to be paid to SB deposits. Before deregulation the rate of interest mandated by RBI was 4%. The deregulaltion came into effect from 25the October 2011.

If you are aware the RBI also changed the way the banker's used to pay interest on SB deposits wef 1st April 2010. Before that date the bankers' used to pay interest on lowest balance in SB account from 10th to last day of month. From 1st April 2010 the bankers' are paying interest on daily closing balance.

None of Public Sector Banks has changed the rate on SB deposits after deregulation. In private sector banks also except few banks no other banks have changed the rate. The list of banks offering more than 4% on SB deposits is given below;

Interest payable to those customers who maintain balance of upto Rs. 1 lakh.

Indus Ind Bank 5.5%

Yes Bank 6%

Kotak Mahindra Bank 5.5%

Karnataka Bank 5%

Interest payable to those customers who maintain balance of above Rs. 1 lakh

Yes Bank 7%

Indus Ind Bank 6%

Kotak Mahindra Bank 6%

Saraswat Co-op Bank 6%

Kotak Bank is actively promoting the increase through TV commercials and Yes Bank is doing so in News Paper Ads.

Its interesting to see that HDFC Bank, ICICI Bank and Axis Bank has not increased the rates.

　

　

HDFC Bank - Investment opinion

HDFC Bank (Rs 621.9): This bank appears to be operating in another planet. Even as most bank stocks are trading well below their 2008 peaks, this stock trades 72 per cent above this peak. Both medium and short-term trends are up in the stock.

Investors should therefore ride this uptrend with suitable stop-loss to protect their profits. Stop-loss for short-term investors can be at Rs 580 while medium-term investors can hold with deep stop-loss at Rs 520.

 

The third leg of the uptrend from the 2009 low of Rs 156 is currently in motion. This leg has the targets of Rs 615 and then Rs 748.

 

If the stock manages a clean break beyond Rs 650, it can move on to Rs 748 over the long-term.

Long-term investors can stay invested as long as the stock trades above Rs 450.

 

Corrections to this level can also be construed as an opportunity to accumulate this stock by long-term investors.

 

(As appeared in Business Line dtd 07.10.2012)

HDFC Bank increases credit card payment fees through Cash/ATM

If you have HDFC Bank credit card and usually make payment of your card dues by cash at HDFC Bank outlet or ATM then from next time be ready to pay double the charges you are paying now, as HDFC Bank will charge Rs.100 towards each credit card payment received in cash or ATM with effect from November 1, 2012.  The bank at present has credit card customer base of 56 lakh or 32% of overall credit card market size in the country.

New ED for Bank of Baroda

Mr. Ranjan Dhawan has been appointed as  an Executive Director of Bank of Baroda.

Mr. Dhawan, who is now Chief General Manager at Punjab National Bank, is expected to assume charge of his new role on November 1.