ICICI Bank has sharply raised its minimum average monthly balance requirement for metro and urban savings account holders to Rs 50,000 for new accounts effective August 1. This marks a fivefold jump from the earlier Rs 10,000 threshold, making ICICI Bank's minimum average balance, the steepest among major Indian banks.
By contrast, other leading private sector peers in India such as HDFC Bank and Axis Bank continue to maintain a relatively lower minimum average balance of Rs 10,000 for customers in metro or urban areas.
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Other private sector lenders such as IndusInd Bank, Kotak Mahindra Bank, Yes Bank and DBS Bank India also ask customers to maintain minimum average balance of Rs 10,000. Analysts believe ICICI Bank's move is a clear signal that it is pivoting toward a more premium customer base such as foreign banks.
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This move by ICICI Bank has come at a time when a growing number of public sector banks have scrapped minimum balance requirements altogether. State Bank of India, the country's largest lender, removed its minimum balance mandate back in 2020, making all its regular savings accounts effectively zero-balance with no penalties.
In the last few months, Canara Bank, Bank of Baroda, Indian Bank, Punjab National Bank and Bank of India have also waived such rules entirely, citing customer convenience and financial inclusion.
How will ICICI Bank's MAB change impact customers?
The divergence in policy between private and public sector banks is stark. While public lenders are chasing volume growth and customer acquisition, private banks are increasingly segmenting their customer base and tying service levels to relationship value, a banking analyst said.
Experts believe this two-track approach could reshape savings account market share over the next few years. For customers, the impact is immediate. Urban account holders who fail to keep Rs 50,000 in their ICICI savings account could face monthly penalties, making it potentially more expensive to maintain than certain premium banking products.
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