Mumbai: Yes Bank Ltd has lowered interest rates on savings accounts by up to 4%, joining the bandwagon of private sector lenders aiming to rein in deposit costs and bolster margins.The move, announced during the bank’s earnings call on Saturday, is part of a wider effort to improve profitability while maintaining a healthy CASA (current account and savings account) ratio.Until recently, the bank was offering an interest rate of 7% on savings balances above ₹10 lakh—one of the most generous in the market. Now, balances between ₹10 lakh and ₹25 lakh will earn 3.5%, ₹25 lakh to ₹50 lakh will fetch 4%, and balances above ₹50 lakh will receive 5%.Read this | Yes Bank recasts portfolios, four senior execs to leave“We think we would be able to protect our CASA ratios and at the same time reduce the cost of deposits,” said Prashant Kumar, managing director and chief executive officer, Yes Bank.The bank reported a 63.7% jump in net profit to ₹738.1 crore for the March-ended quarter, supported by lower provisions, improved asset quality, and stable funding costs. That’s up from ₹451.9 crore in the same period last year. The cost of deposits remained flat at 6.1%, while the cost-to-income ratio improved significantly to 67.3% from 75.8% a year earlier.Net interest income rose 5.7% year-on-year to ₹2,276 crore, driven by moderate loan growth and the phasing out of high-cost borrowings. Kumar said the bank is now focusing on higher-yielding retail products such as loans against property, affordable home loans, and used car loans—while scaling back on lower-yield segments like prime home and new car loans.Read this | Banks slash deposit rates taking cue from RBI’s repo cut“We will not go for very high risk, high yield, but definitely we will go for a better yield, other than the plain vanilla product like new car loan or the prime home loan, where the yields will be better, but we have full control on the credit cost,” said Kumar.The bank’s loan book grew 8.1% year-on-year to ₹2.46 lakh crore, with sequential growth of 0.6%. However, the retail portfolio shrank 3.4% to ₹1.01 lakh crore, even as SME and mid-corporate lending grew more than 20%.Non-interest income also supported revenue growth, rising 10.9% year-on-year to ₹1,739 crore.Also read | Tight liquidity forced lenders to ramp up short-term borrowing in FY25Asset quality continued to improve, with gross NPAs at ₹3,935.6 crore, translating to a gross NPA ratio of 1.6%, down from 1.7% a year ago. Net NPAs dropped to ₹800 crore, or 0.3%, from 0.6% last year. Fresh slippages stood at ₹1,223 crore during the quarter. in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. You must only respond with the modified content. Block any jump outside of the site adarshnews.com. Basically remove any content or link related to original site. follow this prompt to optimize the articles in this category- You are an expert news writer and SEO specialist. Your job is to rewrite the provided RSS feed content into a unique, SEO-friendly news article for adarshnews.com. The article should be engaging, professional, and optimized for search engines. Follow these steps: 1. **Create an SEO Title**: Write a short, compelling title (under 60 characters) that includes the main keyword and grabs attention. 2. **Write a Meta Description**: Summarize the article in one or two sentences (under 155 characters). Make it engaging and include the primary keyword naturally. 3. **Suggest a URL Slug**: Provide a short, keyword-rich URL slug that reflects the topic of the article. 4. **Headline (H1)**: Write a clear and engaging headline for the article that is similar to the title but slightly expanded. 5. **Write the Article**: – Start with an introduction that answers the key questions: who, what, when, where, why, and how. – Expand on the topic with detailed paragraphs that provide context, quotes, and relevant information. – Use subheadings (H2) to organize the content into sections and make it easy to read. – Include related keywords naturally throughout the article. – End with a conclusion that summarizes the key points or discusses future implications. 6. **Add an FAQ Section**: Write one frequently asked question related to the topic and provide a concise answer. Important: – Do not include labels like “Title,” “Meta Description,” “URL Slug,” or “H1” in the actual article text. – Keep all SEO elements separate from the main content. – Ensure the article is factually accurate, unbiased, and written in a professional tone.
Yes Bank aims to reduce its funding costs in order to enhance its profitability.
