The customers can avail the facility by clicking ‘pre-approved offers’ or ‘exclusive Offers’ to the select eligible fixed deposits. The bank promises to disburse the sanctioned overdraft limit in one day.
Private lender Yes Bank has launched an overdraft (OD) facility against fixed deposits (FDs) for its customers through digital channels. “The applicable interest rate is 2% for individuals and 1% for senior citizen customers,” the bank said in a release. To avail this overdraft, customer should have FDs between Rs 50,000 and Rs 1 crore for a minimum tenure of 181 days. The facility is available on digital channels Yes Mobile and Yes Robot.
The customers can avail the facility by clicking ‘pre-approved offers’ or ‘exclusive Offers’ to the select eligible fixed deposits. The bank promises to disburse the sanctioned overdraft limit in one day. At present Yes Bank is offering 6.75% interest rate on FDs with nine months to one year tenure.
Yes Bank had earlier continued to lose deposits for the quarter ended March 31. The bank’s current account savings account (CASA) balances slid 63% year-on-year (y-o-y) and 47% sequentially to Rs 28,063 crore at March end. The CASA ratio, too, fell to 26.6% at the end of March from 33.1% a year ago and 32.1% a quarter ago. Term deposits also fell 49% y-o-y to Rs 77,301 crore as on March 31.
Yes Bank MD and CEO Prashant Kumar said that it was a tough task to restore depositors’ confidence, but the number of retail fixed deposits the bank originated in April was higher than that added during any month in FY20. Yes Bank remains optimistic about being able to resume deposit accretion and targets raising its CASA ratio to above 40% over the next three years.