The nation's largest lender State Bank asia (SBI) has broken its silence on the reports that around Rs 1,771 crore are already collected as charges from customers who would not maintain their minimum monthly average balance (MAB) within their accounts during April-November 2017.
If the reports, quoting the finance ministry, may be believed, just how much SBI generated through the minimum balance penalty is less that this post tax profit that this lender posted within the quarter ended September 2017 which can be Rs 1,581.55 crore.
Within a release, SBI mentioned that "it had waived (MAB) charges for the customers during the last 6 years" and "the charges were reintroduced from April 1, 2017 which was subsequently revised downwards from October 1, 2017 post receiving feedback by reviewing the stakeholders."
SBI, however, didn't mention or deny the collection figures under minimum balance.
The lender further declared that "With an average balance of Rs 3,000 in metro(s), SBI earns Rs 6 only each month whereas to get a minimum balance of Rs 1,000 in rural, banks earns on Rs 2 per month which is meagre as opposed to services offered and corresponding costs incurred by the financial institution (free cheque book, 8 free ATM transactions, free branch transactions)."
Couple of days back, a study by an IIT-Bombay professor claimed that public sector as well as private banks have already been imposing unreasonable charges on customers for unable to maintain minimum balances inside their savings accounts.
If the reports, quoting the finance ministry, may be believed, just how much SBI generated through the minimum balance penalty is less that this post tax profit that this lender posted within the quarter ended September 2017 which can be Rs 1,581.55 crore.
Within a release, SBI mentioned that "it had waived (MAB) charges for the customers during the last 6 years" and "the charges were reintroduced from April 1, 2017 which was subsequently revised downwards from October 1, 2017 post receiving feedback by reviewing the stakeholders."
SBI, however, didn't mention or deny the collection figures under minimum balance.
The lender further declared that "With an average balance of Rs 3,000 in metro(s), SBI earns Rs 6 only each month whereas to get a minimum balance of Rs 1,000 in rural, banks earns on Rs 2 per month which is meagre as opposed to services offered and corresponding costs incurred by the financial institution (free cheque book, 8 free ATM transactions, free branch transactions)."
Couple of days back, a study by an IIT-Bombay professor claimed that public sector as well as private banks have already been imposing unreasonable charges on customers for unable to maintain minimum balances inside their savings accounts.
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