Yes Bank not to alter base rate for now- Business News

No revised base rate: Yes Bank

On lending rate hike, MD and CEO Rana Kapoor said the bank has so far raised benchmark prime lending rate by 5 per cent and it now stood at 17.5 per cent.

  • Mumbai,  September 21, 2010  
  • |  
  • UPDATED   15:43 IST

New-generation private sector lender Yes Bank on Monday said it is not planning to change its base rate immediately.

"We don't believe it is necessary at this stage to alter our base rate," Managing Director and Chief Executive Officer, Rana Kapoor, told newspersons on the sidelines of a meeting on 'Opportunities and challenges for financial services in India and Europe' here.

Yes Bank's current base rate is 7 per cent.

The base rate, which came into force on July 1, is the new lending rate for banks, below which no bank can lend.

According to the Reserve Bank of India norms, banks can alter their base rates every quarter. It is expected that most of the banks will tweak their base rates in October for the first time.

Kapoor also said the bank will raise Rs 300 crore tier-II capital by the end of this quarter and Rs 1,200 crore upper tier-II and lower tier-II capital or hybrid capital by March 2011. The money will be raised for funding agriculture and infrastructure sectors, he added.

On lending rate hike, he said, the bank has so far raised BPLR by 5 per cent and it now stood at 17.5 per cent.

For the June quarter, Yes Bank posted a 56.3 per cent jump in profit, at Rs 156.4 crore, on the back of a good credit growth and improved margins on back of a 28.4 per cent rise in income to Rs 883 crore.