Yes Bank Cuts Interest Rates On Savings Account Deposits
Yes Bank cuts savings account rate for smaller customers.
Private sector lender Yes Bank on Wednesday cut savings deposit rates, joining five other banks that have lowered these rates as liquidity in the system remains high after demonetisation.
Yes Bank will offer 5 percent on savings deposits worth Rs 1 lakh and less, as compared with 6 percent earlier, it said in a notification to stock exchanges. For deposits worth Rs 1 crore and above, the bank will offer 6.25 percent, down from 6.5 percent earlier. The interest rate on savings bank deposits between Rs 1 lakh and Rs 1 crore will remain unchanged at 6 percent. The new rates will come into effect from September 1.
Yes Bank was one of the first few to increase the interest rate on savings account deposits after the Reserve Bank of India deregulated the rate in October 2010. It had started by offering a 7 percent and brought it down later.
The hike in savings rate had helped Yes Bank garner a higher share of current account savings accounts deposits. The private bank’s CASA ratio rose to 36.8 percent as on June 30, as compared with 10.2 percent as on December 31, 2010.
The country’s largest lender State Bank of India was the first to reduce the interest rate on savings deposits since the RBI’s deregulation earlier this month. SBI cut the rate on deposits worth Rs 1 crore and below to 3.5 percent from 4 percent earlier.
Axis Bank too said that it will offer 3.5 percent interest on savings accounts worth Rs 50 lakh and below compared with 4 percent earlier.
Other lenders like Bank of Baroda and Karnataka Bank also reduced the interest rates on some savings account deposits. Kotak Mahindra Bank said that it will hold its interest rate for its low value deposit holders, while reducing the interest rates on savings deposits of Rs 1-5 crore.