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Banks grab salary accounts

Corporate “zero balance salary accounts” is the latest battleground for banks. HDFC Bank, ICICI Bank, SBI, Kotak Mahindra Bank and Union Bank of India have rushed in to replicate the Suvidha accounts of first-comer Citibank with some freebies thrown in.

By Anand Adhikari        Print Edition: Nov 18, 2007

Corporate “zero balance salary accounts” is the latest battleground for banks. HDFC Bank, ICICI Bank, SBI, Kotak Mahindra Bank and Union Bank of India have rushed in to replicate the Suvidha accounts of first-comer Citibank with some freebies thrown in. “The cross-sell opportunity is a big attraction,” says a banker. The salary accounts offer a good database of prospective buyers of MFs, insurance and retail loans, he reasons. But market observers are not enthused and say customers may keep salary accounts with one bank and take a housing loan or a credit card from another bank.

Who’s Offering What

ICICI Bank
Free utility bill payment & remittances up to Rs 25,000

HDFC Bank
Personal accident insurance benefits up to Rs 2 lakh

SBI
Loans at attractive rates on preferential basis & overdraft of up to two months salary

Kotak Bank
Demat account & portfolio management services

Union Bank of India
Multi-city cheque book

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