SBH eyes Rs 3000 crore from new deposit scheme

State Bank of Hyderabad (SBH) is targeting to garner deposits to the tune of Rs 3,000 crore from its recently launched 'SBH 500 Scheme'.

"In the present scenario, with the investors preferring term deposit schemes as a safe bet to investing in the fluctuating real estate and stock markets, we are offering the scheme as the best investment option. So far, we have collected Rs 200 crore deposits from the scheme and we are hopeful of mobilising Rs 3,000 crore deposits by March 31, 2007," RP Sinha, chief general manager, SBH, told mediapersons here on Wednesday.

The bank launched the 'SBH 500 Scheme' on February 1, 2007, under which deposits would be accepted for a fixed tenure of 500 days. The scheme offers an interest of 9 per cent per annum, compounded at quarterly intervals.

Under the scheme, a deposit of Rs 1 lakh would become Rs 1,13,008 on maturity in 500 days, and the depositors can choose to invest a minimum of Rs 1,000 and in multiples of Rs 1,000 thereof without any ceiling on upper limit.

Besides, the bank would extend loan against such deposits made under the scheme. The offer is valid up to March 31, 2007.

SBH targets to achieve Rs 1 lakh crore business by March 2008. It has crossed Rs 65,000 crore as on date, and expects to exceed Rs 70,000 crore by March 2007.