Yes Bank is aimed at the lower cost of funds to increase profitability | Company Business News

Mumbai: Yes Bank Ltd has reduced interest rates on savings accounts by up to 4%, and he joined the bandwagon of the borrowers of the private sector to strengthen the deposit costs and strengthen margins. The move, which was announced during the bank’s earnings call on Saturday, is part of a greater effort to improve profitability while maintaining the relationship with a healthy Casa (current account and savings account). Until recently, the bank offered an interest rate of 7% on savings balances above £ 10 Lakh – one of the most generous in the market. Now balances will earn between £ 10 lakh and £ 25.5%, £ 25 lakh to £ 50 lakh fetch 4%, and balances above £ 50 lakh get 5%. “We think we could protect our Casa relationships and at the same time reduce the cost of deposits,” says Prashant Kumar, MD and CEO, Yes Bank. The bank reported a 63.7% plug in the net profit to £ 738.1 for the quarter quarter, supported by lower supply, improved asset equality and stable financing costs. This is higher than £ 451.9 in the same period last year. The cost of deposits remained at 6.1%, while the cost-to-income ratio significantly improved to 67.3% from 75.8% a year earlier. Net interest income increased by 5.7% year-on-year to £ 2.276 crore, powered by moderate loan growth and phasing out high cost loans. Kumar said the bank is now focusing on retail products with higher returns such as property loans, affordable home loans and used car loans- while scaling back on lower returns such as prime home and new car loans. “We will not do a very high risk, a high return, but we will certainly produce a better return except the usual vanilla product such as a new car loan or the prime home loan, where the yields will be better, but we have full control over credit costs,” Kumar said. The bank’s loan book grew 8.1% year -on -year to £ 2.46 Lakh, with a successive 0.6% growth. However, the retail portfolio has shrunk 3.4% to £ 1,01 lakh crore, even though the SMEs and the mid-corporate loans have grown more than 20%. Non-interest income also supported revenue growth, which rose 10.9% to £ 1,739 for a year-on-year year. Asset quality continued to improve, with gross NPAs at £ 3,935.6 crore, which means a 1.6% gross NPA ratio, from 1.7% a year ago. Net NPAs dropped to £ 800 crore, or 0.3%, last year. Fresh slide stood at £ 1.223 crore during the quarter. First Published: 19 Apr 2025, 07:27 PM IST