Mumbai, April 28: Yes Bank's growing customer base will give the bank a wider target group to sell its products such as loans and investment plans. The lender has strengthened this base by offering a 7 per cent interest rate on savings accounts.
Yes Bank is one of the few lenders that raised the interest rate on savings accounts after the RBI deregulated these accounts in October. It first raised it by 200 basis points to 6 per cent and subsequently in December by 100 basis points.
Yes Bank's proportion of low-cost current and savings accounts (CASA) has also jumped. In 2011-12, CASA ratio to total deposits rose to 15 per cent from 10 per cent in the previous year on the back of deposits jumping nearly 206 per cent.
Rana Kapoor, Yes Bank managing director and CEO, said the lender would use the customer base to generate fee income too. For a customer base of over 2.5 million by 2015, even if the bank earned an average fee of Rs 1,000 per customer, it would translate into a retail fee of Rs 250 crore, Kapoor said.