New Delhi: The benefit of deregulation in the saving deposit rate by Reserve Bank of India (RBI) cannot be availed by the customers of State Bank of India (SBI), Canara bank and other major government banks of the country.

At a time when private players have announced a hike of 2 percent interest rate on saving account, government banks are likely to go for mere increase on deposits above Rs 1 lakh.

According to one of the senior officers in Punjab National Bank, with the increase in the interest rate on loans, the profit percentage of the banks has decreased. In such a situation none of the banks can raise interest rate of saving deposit.

“High interest rate for small deposit holders will increase the burden on small banks by Rs 200 crore and Rs 1500 crore on major banks. There are more than 40 lakh customers who have more than Rs 1 lakh in their saving account. High interest rate will be an additional burden,” said the official who preferred anonymity.

Experts say small banks have less percentage of saving account holders due to which they are following the new policy to attract the masses. It is also expected that in case of increased interest rate, banks will charge extra fees for operating the accounts.

JPN/Bureau