The decision to raise the interest rate on savings deposit in October 2011 has benefited Yes Bank in garnering a significant growth in these. As on September 30, the bank had Rs 3,700 crore savings deposit, year-on-year growth of 351.3 per cent. It has raised rates on these after the Reserve Bank of India had deregulated the segment. Initially, the bank had raised the rate to six per cent from four per cent, but later decided on seven per cent.
"YES Bank has a unique selling proposition at the level of seven per cent for balances above Rs 1,00,000 and also six per cent for below Rs 1,00,000, because the average fixed deposit cost is nine per cent," said Rana Kapoor, managing director & CEO.
The current and savings account deposits grew 86.7 per cent, y-o-y, to Rs 9,034.1 crore, taking the CASA ratio to 17.3 per cent as on September 30, up from 11 per cent a year ago.