Impact of Deregulation of Saving Interest Rate in Yes Bank

By Ravi Prakash 4110026026

Asset Liability Duration Matching for Yes Bank due to Deregulation of Saving Rate Investment by RBI
By Ravi Prakash 4110026026

Synopsis
The project will be focused on developing different saving interest rate on the deposit amounts and enable Yes Bank to measure and monitor risk and provide suitable strategies for their management.

Objective of Project
The effect on Banks increase interest rate on NRE deposits. Higher cost for banks due to Regulation of Saving interest Rate. The interest rates on various loan products rising cost for borrowers.

Scope of the study

Evaluation of potential of the Yes Bank for providing the different type of Saving Interest Rates as per the Deposit Amount. Various Valuation techniques have been implied to analyse the increase in the generation of the highest possible amount of deposit.

Methodology of Study
Define and differentiate different classes of risk that Yes Bank is exposed to i.e. Deposit rate, Market risk, Interest rate risk, and Liquidity risk. Application of Risk measurement techniques, such as:
Gap analysis model Duration model Value at Risk Simulation

Goal programming techniques for Deposit. Cash-flow/Liquidity matching strategies. Funds Deposit strategies. Surplus optimization strategies. Study of emerging issues in the Indian context such as, vagaries of the international markets, Deposit management, etc. affecting Yes Bank. Use of Information Technology in improving Deposit Techniques and its Management Bank.

Limitation & Conclusion

The recent financial crisis and global meltdown of markets, banks and other institutions
should leave no doubt that effective risk management and Deposit management in banks is not an optional function.

The project on Deregulation of Saving Interest Rates of Yes Bank will help in developing new strategies for better management by Yes Bank.