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Industrial and Commercial Bank of China, Ltd. (ICBC), the nation's biggest bank, has said it will impose fees on savings accounts which have a balance of under 300 yuan (37.5 U.S. dollars) starting from late June.

The plan is part of bank's efforts to slash business costs and improve efficiency and service, the bank said in a statement.

Beginning June 21, ICBC will charge 3 yuan a quarter on small accounts, but no fee will be imposed on individual savings accounts which are used to pay consumer loans or credit expenses.

The bank is boosting measures to upgrade corporate governance and beef up profitability ahead of a planned stock market listing this year.

Regulators are also encouraging commercial banks, now relying heavily on interest-based revenues, to diversify into fee-based intermediary businesses.

The move is made despite complaints from some clients, who, analysts say, have been accustomed to the benefits of state banks.

Of other state-controlled banks, Bank of China Corporation Ltd.,the nation's second-biggest bank, recently began to charge 3 yuan per quarter on accounts of less than 500 yuan in Beijing and thoseof less than 300 yuan in Shanghai.

China Construction Bank Corporation, the third-largest bank, which raised 9.2 billion U.S. dollars in October in Hong Kong, hasbeen charging a fee on personal savings accounts with balances of less than 500 yuan since August.