As the bankers will now pay a higher interest rate to the depositors, this will increase the cost of funds by less than 1 basis point. However, the rise in the lending rates will completely absorb the increase in the deposit rate.
On Tuesday, the Reserve Bank of India through its monetary policy has increased the interest rate by 50 basis points in order to curb the rising inflation.
At 12:35 PM, on BSE, the stocks of Yes Bank Ltd. were trading with increase of 2.88 per cent at Rs. 290.90. It touched the day"s high at Rs. 291.65 and day"s low at Rs. 280.10 so far.