Mumbai: Yes Bank Limited has reduced interest rates on savings accounts by 4%, which aims to join the private sector lenders by joining the bandwagan and the cost and bolt margin.
This step announced during the bank’s earnings call on Saturday is part of a comprehensive effort to improve profitability while maintaining a healthy CASA (current account and savings account) ratio.
Till some time ago, the bank was offering an interest rate of 7% on the saving balance above 10 lakh – one of the most generous in the market. Now, balance between 10 lakhs and Will earn 2.5 million 3.5%, 25 lakhs 50 lakh 4%, and will receive the balance above 50 lakh 5%will be received.
“We feel that we will be able to protect our CASA ratios and at the same time reduce the cost of deposit,” the manager Kumar, managing director and Chief Executive Officer said, “said,” Yes bank,
Bank reported a jump of 63.7% in net profit 738.1 crore for the march-based quarter, supported by low provisions, improving the quality of the asset, and steady funding costs. He is up 451.9 crore in the same period last year. The cost of deposit was flat at 6.1%, while the cost-to-I ratio improved a year ago from 75.8% to 67.3%.
Pure interest income increased by 5.7% year-on-year 2,276 crore, phased out of moderate debt hike and high cost lends.
Kumar said that the bank is now using high-high retail products such as loans, cheap home loans, and car loans-while scaling back on lower yield segments such as prime home and new car loan.
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Kumar said, “We will not go for a lot of risk, high yield, but of course we will go for a better yield, in addition to plain vanilla products like new car loan or prime home loan, where yields will be better, but we will have full control over credit costs,” Kumar said.
Bank’s loan book increased by 8.1% year after year 2.46 lakh crores, with a sequential increase of 0.6%. However, the retail portfolio shrinks 3.4% 1.01 lakh crores, even SME and mid-corporate borrowings increased by more than 20%.
Non-onion income also supported revenue growth, which is increasing from year to year by 10.9% 1,739 crore.
With gross NPA, property quality continued to improve, 3,935.6 crore, translation in GDA ratio of 1.6% below 1.7% a year ago. Net NPA dropped Last year 0.6% to 800 crores, or 0.3%. Standing on fresh slippery 1,223 crore during the quarter.