Financial Daily from THE HINDU group of publications
Sunday, Apr 20, 2003
Financial Daily from THE HINDU group of publications Sunday, Apr 20, 2003 |
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Private Banks Money & Banking - Private Banks Kotak Bank's `high-yield' a/c attracts NRIs Poornima Mohandas
MUMBAI, April 17 HAS the new private sector bank, Kotak Mahindra Bank, caught the fancy of NRIs? According to the bank's officials, in over two weeks of operations, the `high-yield' NRI account seems to have clicked for the NBFC-turned-elitist bank. "We have been getting a good response for this product from NRIs from day one though it is not a unique offering. We never thought it would be so easy to attract deposits,'' said a senior official in the new-age bank with a capital base of over Rs 200 crore. Deposits are flowing in from varied parts of the world. However, the official was reluctant to divulge figures. Publicity for the `high-yield account' has been confined to mere direct mailers and the bank's own website, said the official, Road-shows will be taken up at the appropriate time. The `high-yield account' is a rupee account with a forward cover, therefore the NRI depositor has the freedom to obtain the returns on the due date in his/her preferred currency. The one-year account can be started with a minimum of Rs 15 lakh and yield returns are between 3.00 per cent and 3.50 per cent depending on the cost of the forward cover premia prevailing on the day of the start of the deposit. The one-year rupee account sans the forward cover earns 6.00 per cent returns. "Customers now prefer to take the forward cover in the backdrop of the consistently appreciating Indian rupee,'' said the official. Similar products are also being offered by HDFC Bank and ICICI Bank. "Currently, we are offering the amount due only in the dollar and pound. Soon we will offer it in Swiss franc and euro as well, i.e., once our cross currency treasury operations are in full swing,'' said the official. The bank, with just two branches in central locations of Mumbai and New Delhi, has primarily a retail focus. It will push its retail asset products like auto and commercial vehicle loans and personal loans.
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