Customer segment for SBI is different from private banks, says MD

State Bank of India (SBI) has reduced the charges for not maintaining minimum balance on its accounts. In an interview to CNBC-TV18, Rajnish Kumar, MD of SBI spoke about the same.

Kumar said there was a representation from certain segments of account holders like pensioners and widows that they are unable to maintain the monthly average balance and their income level is not such that they can afford these charges.

"It won't push up our cost; cost remains the same, in fact after we introduced the charges there was no impact on our business. We still open one lakh accounts every day," he added.

He said customer segment for SBI is different from private banks.

Customer feedback was that Rs 5,000 is a high average balance, said Kumar.

Talking about the circular on investments in Real Estate Investment Trust (REIT)/ Infrastructure Investment Trust (InvIT), he said these are good options for banks.

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