Mumbai: Yes Bank Limited has lowered interest rates on savings accounts by 4%, joining the private sector lender trend aimed at reducing deposit costs and enhancing profit margins.
The move was announced on a bank’s earnings call on Saturday, as part of a broader effort to increase profitability while maintaining a healthy CASA (current account and savings account) ratio.
Until recently, the bank also offered an interest rate of 7% of the above savings balance ₹1 million – One of the most generous in the market. Now, the balance between ₹1 million and ₹2.5 million will earn 3.5%, ₹2.5 million to ₹50 million will obtain a 4% balance ₹50 million will get 5%.
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“We think we will be able to protect our CASA ratio while reducing the cost of deposit,” said Prashant Kumar, managing director and CEO of Yes Bank.
The bank reported a 63.7% increase in net profit ₹The March quarter’s 7.381 million was supported by low regulations, improving asset quality and stable capital costs. That’s from ₹4.519 million in the same period last year. The cost of deposit remained flat at 6.1%, while the cost-to-income ratio increased significantly to 67.3% from 75.8% in the same period last year.
Net interest income rose 5.7% year-on-year ₹2.276 million, driven by medium loan growth and high-cost borrowing phase-out.
Kumar said the bank is now focusing on higher retail products, such as loans for property, affordable home loans and used car loans, while also shrinking low-priced areas such as Prime Home and New Car Loans.
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“We will definitely not get very risky, high returns, but we will get higher returns, but the yield will be better, but we can have full control over the credit costs,” Kumar said.
The bank’s loan book rose 8.1% year-on-year ₹2.46 billion million, a sequential increase of 0.6%. However, the retail portfolio shrank by 3.4% to ₹Even if loans for small and medium-sized enterprises and medium-sized companies grow by more than 20%, even if there is Rs 1.01 billion crore.
Non-interest income also supports revenue growth, up 10.9% year-on-year ₹173.9 billion.
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Asset quality continues to improve, with the total NPA amount ₹39.356 million, the total conversion rate to NPA was 1.6%, down from 1.7% a year ago. Net NPA dropped to ₹Rs 8 billion, or 0.3%, from 0.6% last year. Fresh sliding stand in ₹This quarter was 12.23 million.
