Mangaluru : Karnataka Bank as part of its asset liability management has introduced four interest variants on balances maintained in SB accounts by its customers. For daily balances of above Rs 1 crore, interest rate is revised to 5% per annum, from existing 4% pa, whereas for daily balances of Rs 50 lakh to Rs 1 crore, applicable interest rate is 4% pa, and CEO of the Bank, said.

Similarly for daily balance in the range of more than Rs 1 lakh to Rs 50 lakh, the interest rate is reduced to 3.5% from existing 4% and balance below Rs 1 lakh, revised rate is 3% from the existing 4%. The Bank’s asset-liability committee (ALCO) at its meeting on Wednesday, took the above decision and is effective from Thursday, Mahabaleshwara said, adding above interest rate is applicable to resident Indians and also to SB-NRO and NRE accounts.

“SB product is not price sensitive and is generally driven by product offerings, convenience and customer service standards. Hence interest rate revision impact on customers with lower balance is negligible. However, SBs with higher balance will attract higher interest in the new structure, and hence it may induce customers to park more money in their SB accounts, thus promoting savings habit among general public,” Mahabaleshwara M S, added.