Private sector lender YES Bank has raised its lending and deposit rates, a day after the Reserve Bank of India (RBI)
maintained its status quo on key interest rates.
"While the base rate has been raised by 0.25 per cent to 10.75 per cent effective August 1, fixed deposit rates have been increased between 0.25 per cent to 0.5 per cent in select tenors," YES Bank said in a statement.
The bank was the first to raise lending rate after the RBI kept key policy rates unchanged.
Weighed down
by a weak rupee, the central bank chose to leave unchanged the repo rate (the rate at which RBI lends to the system) at 7.25 per cent and the cash reserve ratio (the amount of deposits banks park with RBI) at 4 per cent.
Soon after the RBI unveiled its first quarter review of monetary policy, many bankers had said that they may have no choice but to hike rates after a month to the detriment of retail borrowers and industry.
With inputs from PTI 
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