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State Bank of Hyderabad (SBH) is planning to tap the business potential in salary accounts of corporates, according to its Managing Director, Ms Renu Challu.
“Salary accounts are now a focus segment for us. We are offering a ‘Smart Salary Account' package with zero balance and a host of technology-based features such as automatic conversion to fixed deposits for higher interest,” Ms Challu told Business Line here.
The package offers ‘advanced' features such as integration with New Pension Scheme (NPS) of the Government of India, among others.
On the profitability of managing salary accounts, the Managing Director said: “They are good. We do have a large number of salary accounts. We now made them more attractive and want to target IT companies.”
Recently, the bank opened a branch in the IT Park Raheja Mindspace in Madhapur.
The public sector banks had earlier ‘lost out' on the salary accounts segment to private banks due to the early lead they had in various technology platforms, Ms Challu said, adding: “But now we have the best technology offerings.”
SBH is also ready to take over existing loans of employees if a corporate entity is willing to switch over to it for managing salaries from any other bank.
A special cell has also been opened to expand the salary account segment in the corporate head office here.
LARGE CONTRACT
SBH was also doing ‘well' in gold coin sale and had just bagged a ‘large contract' for gold coins.
The bank is selling over 14 kg of gold a month, including the customised sale as per the choice of the customers, especially in the non-individual segment.
The gold coins are available in two, four, eight and 20 gm denominations.
BUSINESS EXPANSION
On the business growth this year, Ms Challu said: “Business is good. We hope to end this year with reasonable profits.”
Its net profit increased 13 per cent at Rs 250 crore in the third quarter ended December 31, 2010, compared with Rs 221 crore in the year-ago period.
Of the 150 proposed new branches for the current fiscal, 124 were already opened while the remaining would be opened by the end of this month.
“For next year, we have 100 new branch licenses on hand,” the Managing Director said.
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