YES Bank hits 52-week low, dives 17% on base rate hike

Rajat Monga, CFO & Senior Group President of Financial Markets said rates hiked due to higher wholesale deposit rates. "We do not expect credit growth to get impacted, which will be in the range of 14-16 percent," he added.

July 31, 2013 / 11:06 IST

Moneycontrol Bureau

YES Bank shares crashed more than 17 percent in early trade Wednesday to touch a new 52-week low of Rs 288.55 after the private sector lender has revised its base rate to 10.75 percent (an increase of 0.25 percent) effective August 1, 2013.

The bank also announced the revision of it's deposit rates by 0.25-0.5 percent in select tenors. This provides an opportunity for retail depositors to lock in higher rates on term deposits.

Rajat Monga, CFO and Senior Group President of Financial Markets said rates hiked due to higher wholesale deposit rates. "We do not expect credit growth to get impacted, which will be in the range of 14-16 percent," he added.

Meanwhile, the RBI said it may make necessary changes in the required norms on appointment of directors on the bank's boards if needed. "This boardroom battle which is going on (at YES Bank), we are studying it and if we think that some measure needs to be taken on the issue, we will look into that," said Deputy Governor in-Charge of Banking Supervision Anand Sinha during the customary post-policy interaction at the RBI headquarters.