Cash for CASA: Banks reward staff to boost low-cost deposits

http://www.business-standard.com/india/news/cash-for-casa-banks-reward-staff-to-boost-low-cost-deposits/482976/

To stabilise fund flows by increasing the share of low-cost deposits, banks are giving cash incentives and recognition certificates to employees for opening the highest number of current accounts or savings accounts (CASA).

The incentive is Rs 50-100 per account but there is an overall cap on how much an employee can earn through such schemes. The move also aims to cut dependency on bulk deposits.

At Central Bank of India, incentives are given on the number of accounts opened, their quality and the average balance maintained in these. In the first quarter of 2012-13, the bank's savings accounts grew 12.7 per cent as compared to the corresponding period last year.

Union Bank of India is running a campaign for current accounts. Employees are not only being rewarded to open more accounts but also to revive inactive accounts. Its CASA ratio (of the total) was 30.95 per cent at the end of the June quarter. 

Punjab National Bank, too, is offering rewards to motivate employees for CASA campaigns.