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Yes Bank gains after raising savings deposit rate

Capital Market  |  Mumbai 

Meanwhile, the Sensex was down 93.94 points, or 0.60%, to 15,591.27.

On BSE, 1.28 lakh shares were traded in the counter as against an average daily volume of 3.35 lakh shares in the past one quarter.

The stock hit a high of Rs 255.80 and a low of Rs 247 so far during the day. The stock had hit a 52-week high of Rs 341.30 on 15 April 2011 and a 52-week low of Rs 233.55 on 9 February 2011.

The stock had underperformed the market over the past one month until 21 December 2011, falling 4.75% compared with the Sensex's 1.64% decline. The scrip had also underperformed the market in past one quarter, sliding 12.23% as against 8.09% fall in the Sensex.

The large-cap private sector bank has an equity capital of Rs 351.93 crore. Face value per share is Rs 10.

today (22 December 2011) hiked its deposit interest rates for resident and non-resident customers.

The for resident savings accounts, with balances over Rs 1 lakh, has been raised by 100 basis points (bps), to 7%. This is in addition to the existing 6% interest offered to customers for balances below Rs 1 lakh.

For the non resident savings accounts (NRE & NRO), has raised the interest rates by 200 bps to 6% for balance up to Rs. 1 lakh and by 300 bps to 7% for over Rs 1 lakh balance.

Further, the interest rates on NRE fixed deposits, which were earlier regulated and linked to LIBOR, has also been increased to mirror the resident term deposit rates of 1 year and above, with a peak rate of 9.60% currently. This is in response to the recent development where Reserve (RBI) deregulated the non resident deposit rates.

Speaking on the announcement, Dr. Rana Kapoor, founder, managing director & CEO, said, "In light of the current volatile global economic situation, we believe that the new Yes Bank deposit rates will be a highly beneficial and an attractive source of returns for our customers."

The bank said the latest announcement provides a significant opportunity for the bank to leverage its 325 plus branch network to accelerate mobilisation of granular retail deposits, one of the key objectives of its strategy for building its retail franchise with unprecedented service and innovative experience.

The RBI deregulated savings bank interest rates on 25 October 2011, providing a boost to smaller lenders, which moved quickly to raise rates.

Yes Bank has one of the lowest proportion of savings bank to total deposits. Yes Bank's current account and savings account (CASA) ratio remained stable at 11% as of 30 September 2011, with CASA deposits at Rs 4838.80 crore.

Yes Bank's net profit fell 33.3% to Rs 235.02 crore on 52.4% increase in operating income to Rs 1652.70 crore in Q2 September 2011 over Q2 September 2010.

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First Published: Sat, December 22 2012. 23:32 IST