IDBI BANK

banking without banking charges

Waives off all Bank Charges List of charges that have been

removed:

Average Balance ChargesAccount Closure ChargesATM Inter Change FeeEft ChargesNew Card IssueOutstation Cheque Collection

Cont.

Cardfee New - MasterCardfee New - VISACash Services ChargesCheque Book ChargesDD ChargesECS Charges

Cont.PO ChargesAccount Statement ChargesStanding Instructions ChargesStop Payment ChargesOutward ChargesMicr Cheque ChargesDD Cancellation ChargesDD Issue Charges

Causes of Changes in PolicyTo Strengthen the Bank's bond

with its customers To grow low-cost deposits, retain

customers and attract new ones.To help boost its low-cost CASA

deposit base to around 20 per cent of the total deposits in the next six months, from the current levels of 13%.

Pressure from RBI to increase their CASA Deposits to industry average levels.

How does it affect the CustomersAny account holder, who walks

into the bank and asks for a demand draft, will get it without a charge.

Any account holder can do an Electronic Fund Transfer, without a charge.

No account holder will have to worry about keeping a minimum balance in his or her account. 

Cont..An account holder will be able to

withdraw money from ATM as many times as he may want to without paying a charge.

All the charges levied by a bank except those pertaining to bounced cheques have been waived.

How does it Impact the BankBank expects to increase its share of

current and savings account (CASA) deposits to 22% by the end of this fiscal from current levels of 13% as against industry average of 30%

Bank is aiming to double its client base to 10 million (one crore) customers in the next 12 months from existing 5 mn.

Bank will lose revenue as the income from as Fee Income would be come down.

Tremendous increase of workload on the Workforce as the business will grow in folds.

How will the Bank Mitigate its lossesThe Management says that they

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.

Before March next year they plan to add 280 more branches in urban, semi-urban and rural India covering all states and union territories.

Cont..IDBI bank has embarked on a massive

expansion-cum-diversification programme during this year

They Plan to increase the number of ATMs by adding around 400 to 500 new ones and take the total figure to 1,300 ATM kiosks.

In next three years, the bank is planning to open 1,500-2,000 branches which would triple their existing base.

IDBI Bank has decided to raise at least one billion USD during the next 12 to 15 months

Cont.. The Bank has recently received

capital injection of Rs 3,011 crore from the Government.

Since Large corporate, mid-corporate and SMEs know them quite well, they would not find it very difficult to lend the money to them

IDBI wants itself to be known as a universal bank that caters to the financial needs of the common man.

Questions which remains openWill it REVOLUTIONAIZE the

entire banking industry?Will IDBI Bank be able to cope up

with the increased work pressure?

Do they have the sufficient resources to stand tall against such a huge scale up in their business?

How far will it impact its Top and Bottom Line of IDBI Bank?

Cont..Will the Banking Industry become a lot

more competitive and will it result in a similar situation as to Telecom Sector?

What is the preparation level of Peers in the Industry?

Which kind of Banks will be the most affected because of this bold step of IDBI Bank

How will it impact the plans of upcoming Domestic Banks like the Reliance Capital and LIC Housing Finance and also the Foreign Banks.