Suryoday Small Finance Bank

Suryoday Small Finance Bank which was a micro-finance institution in its earlier avatar, on Monday Jan 23,2017 opened its first branch close to its headquarters in Belapur, Navi Mumbai.

R Baskar Babu, MD and CEO, Suryoday Small Finance Bank (SSFB), said: “On fixed deposits in the one to two years tenor, we are paying 9 per cent interest. This is our peak deposit rate.

“And specifically for senior citizens we are paying 9.75 per cent interest.

“Usually, banks pay 50 basis points more to senior citizens but we decided to pay 75 basis points more in that particular (one to two years) tenor.” One basis point is equal to one-hundredth of a percentage point.

Suryoday Small Finance Bank, the newest entrant in the world of banking, has decided to go in for aggressive pricing of fixed deposits.

It is offering 9 per cent interest on deposits of one to two years tenor. Senior citizens will earn 9.75 per cent for the same tenor.

On savings bank (SB) deposits, SSFB is paying 6.25 per cent interest on deposits of up to ₹1 lakh; 7.25 per cent on deposits of ₹1-10 lakh; and 7 per cent on deposits above ₹10 lakh. 

SSFB will pay interest on a monthly basis on savings bank deposits. Babu said: “Most of the banks credit interest on a quarterly basis. So, probably, we will be the first bank to credit interest on a monthly ba

Note

According to the RBI, the objectives of setting up small finance banks are to further financial inclusion by providing savings vehicles, and supplying of credit to small business units, small and marginal farmers, micro and small industries, and other unorganised sector entities through high-technology, low-cost operations.