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NRI Banking: Allahabad Bank concentrates on NRI accounts |
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Public sector bank, Allahabad Bank is eyeing NRI accounts to shore up its business from the segment from the ‘negligible’ level of Rs 400 crore. The total NRI kitty is estimated at almost $ 48 billion and the annual remittances by Indian expatriates at $5-6 billion per annum. While the bank already has an offshore branch in Hong Kong and a representative office in China, it is exploring the possibility of opening a representative office at Dhaka in Bangladesh as well. The public sector bank also has a tie-up with the UAE Exchange for facilitating remittances. Besides, the bank is trying to increase its corpus of cheaper source of funds by increasing its CASA (current and savings account) level to about 36.5 per cent from the current level of 35 per cent. Meanwhile, the Bank is expanding its footprint in the country and has RBI licences to open 69 new branches, including four in UP. On the proposed base rate system to be implemented from July 1, it could range from 9-10 per cent. The average yield for Allahabad Bank is about 10.57 per cent. |
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