Yes Bank raises savings deposit rate to 6%, stock up 9%

Private sector lender YES Bank said on Tuesday it has raised savings deposit rate for all savings accounts by 200 basis points to 6 percent.

It has also raised base rate by 25 basis points to 10.5 percent, effective immediately, it said in a press release.

Among all the banks, Yes Bank is one such which will probably benefit from the savings deregulation announced by the RBI today because only about 13-14 percent is the CASA ( Current ans saving accounts) ratio for the bank. In fact, it has actually reacted positively while the entire industry is reeling.

Earlier in the day, the Reserve Bank of India (RBI) deregulated savings deposit rates, its last administered bank rate.

In an exclusive interview to CNBC-TV18, Rana Kapoor, founder, managing director and CEO of Yes Bank says that deregulating savings’ rates is possibly one of the single and most important banking reforms in the last 20 years.

Talking specifically about Yes Bank, Kapoor says that savings accounts for only 2 percent of the 11 percent current account to savings account ratio. “This provides for us a fantastic opportunity to provide market based real rates closer to inflation and not necessarily nominal rates where customers lose value,” he adds.

Watch video: Expect more than 100 bps hike this evening, says Yes Bank