The youngest private sector lender of the country, Yes Bank has said that its base rate is not seeing any change in the recent future.
"We don't believe it is necessary at this stage to alter our base rate," Yes Bank Managing Director and Chief Executive Rana Kapoor said.
The base rate of the bank is 7%. Base rate refers to the new system of lending incorporated in the Indian banking industry from July 1 this year so as to replace the BPLR system of lending and bring about more transparency in the banking business.
RBI norms say that base rate can be changed by banks every quarter, the first of which is coming this October. Most banks are expected to change base rates in October.
Kapoor also informed that the bank would raise Rs 300 crore as Tier II capital by the quarter end and Rs 1,200 crore upper tier II and lower tier II capital or hybrid capital by March 2011.
Speaking about the hike in lending rates, he said that the BPLR of the bank has been raised by 5% and currently stands at 17.5%.