The latest personal loan lender in the country, Yes Bank has said that its base rate will not change in the immediate future.
MD and CEO of Yes Bank, Rana Kapoor said “”We don’t believe it is necessary at this stage to alter our base rate”.
The current base rate of Yes Bank is 7%. Base rate is the new method of lending included in the Indian banking sector from July 1 2010 in order to substitute the BPLR method of lending and introducing higher transparency in the banking sector.
RBI terms say that banks can alter base rate each quarter, the first of which is due in October. Many banks are anticipated to change base rates in October.
Kapoor also said that the bank would generate Rs 300 crore as Tier II capital by the end of this quarter and Rs 1,200 crore upper tier II and lower tier II capital (hybrid capital) by March 2011.
Talking about the increase in lending rates, he said that the bank’s BPLR has been increased by 5% and is presently 17.5%.
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