Savings Rate deregulation – mentioned in the RBI policy statement – has claimed one winner at least.
Yes Bank raised its savings rate to 6%. This is 200 bps higher than the 4% other banks give you.
Yes Bank has had a stunning Q2, growing earnings 33% in the Sep 2011 quarter. Their CASA ratio is very low – just 10% as of June – and their savings deposits were just 817 cr. of the 45,000 cr. they had in total deposits on March 31, 2011. More than 30% of their financing is through corporate deposits, which will carry a price of over 10%, so this is good for the bank.
I’m looking to move my money over, so I’ve pinged them for information on starting an account. Let’s see where it goes.