The public sector bank, Syndicate Bank, is planning to reduce the amount of bulk deposits to 15 percent by the end of March 2013. This was announced by the bank's Executive Director, Mr. Anjaneya Prasad, who added that the bank was capable of slashing about Rs. 7169 crore worth of high priced bulk deposits before the completion of the first nine months of this fiscal.
Reportedly, the total share of bulk deposits (as compared to total deposits) had already been brought down to 16 percent, from its earlier figure of 22 percent, and is expected to be trimmed further to 15 percent.
It should be noted that bulk deposits are fixed deposits of amounts more than Rs. 1 crore. Banks usually provide high interest rates on these deposits.
In the current account and savings accounts segment (CASA), the Karnataka based bank has reported a total share of 32 percent. On the matter, Prasad said, "We have to improve CASA further. With the increase in deposits, CASA should also increase. During the current fiscal we want to maintain them at 32.5 per cent." He added that the bank is aiming to achieve 33 percent share of CASA deposits in the forthcoming year.