Canara and Union Bank Unveil Tailored Deposit Products to Boost Mobilization

In response to slowing deposit growth, two major public sector banks — Canara Bank and Union Bank of India — have launched innovative deposit schemes to attract high-value customers and improve resource mobilization. These new products, announced on May 13, 2025, offer a mix of financial benefits, lifestyle perks, and health insurance coverage, demonstrating a strategic shift towards customer-centric banking solutions.

Why in News?

Canara Bank and Union Bank of India launched special deposit schemes to counter the slowdown in deposit growth, which dropped to 10.3% in FY25 compared to 13.5% in FY24. These schemes are aimed at offering value-added services to customers, boosting deposit figures, and staying competitive in a tight financial environment.

Key Objectives

• Enhance deposit growth amid challenging financial conditions.
• Offer value-added services beyond traditional banking.
• Strengthen customer loyalty through personalized and bundled benefits.
• Attract high-value individual and senior citizen customers.

Canara Bank – TruEdge Product Highlights

• Name: Canara TruEdge (Current & Savings Account offering).
• Target: Enhanced customer segmentation with tailored financial solutions.

Features

• Charge waivers and concessions linked to Monthly Average Balance (MAB).
• Personalized support with a dedicated relationship manager.
• Purpose: Support operational and financial efficiency of clients.

Union Bank – Union Wellness Deposit Highlights

• Name: Union Wellness Deposit.
• Interest Rate: 6.75% p.a. for 375-day tenure.
• Eligibility: Resident individuals (18–75 years), individually or jointly.
• Insurance only for primary account holder in joint accounts.
• Deposit Range: ₹10 lakh to ₹3 crore.

Special Benefits

• Super Top-up Health Insurance with ₹5 lakh sum insured.
• Cashless hospitalisation facilities.
• RuPay Select Debit Card with lifestyle benefits.
• Senior Citizens: Extra 0.50% interest, making it 7.25%.
• Other Facilities: Premature closure and loan against deposit allowed.

Background & Market Context

• Deposit growth continues to be muted across public sector banks.
• Most PSBs project 9–11% deposit growth in FY26.
• Special schemes serve dual purposes: customer acquisition and resource mobilization.
• Targeting senior citizens and high-net-worth individuals becomes vital for profitability.