LENDING & CREDIT | Cesar Tordesillas, India

Yes Bank increases rates by up to 2%

Yes Bank hiked its saving rate by 2% hours after the Reserve Bank of India deregulated savings rates.

It raised savings rate by 200 basis points to 6% and increased its base rate or minimum lending rate by 25 basis points to 10.50% with immediate effect.

However, other leading bankers were not in a hurry to take a call as the liquidity position is comfortable.

“We are not in a hurry. We will see how it pans out. We don’t see any pressure now. Banks are comfortable with the liquidity now. Banks will not be desperate to raise rates,” SBI Chairman Pratip Chaudhuri said after RBI hiked policy rates by 25 basis points. ". . . right now there is so much liquidity that we are thinking of downsizing on the liquidity.”

ICICI Bank said it would watch the situation for sometime before taking a decision on rate revision.

“The rates would not go up immediately. Everybody is going to watch before taking any decision on rate hikes,” ICICI Bank Managing Director and Chief Executive Chanda Kochhar said.

HDFC Bank Managing Director and Chief Executive Aditya Puri said, “Lending rates will not go up till the deposit rates do so. At the moment it is in a comfortable situation.”

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