Yes Bank has rallied 5% to Rs 324, extending its two day's over 10% surge, after the private lender on Tuesday hiked its savings rate by a hefty 200 basis points within hours of Reserve Bank of India (RBI) deregulating savings rate.

The bank raised savings rate by 200 basis points to 6%. Further, the bank increased its base rate or minimum lending rate by 25 basis points to 10.50% with immediate effect.

The stock has rallied 17% in past four trading sessions from Rs 278 on October 21, compared to 2.3% gain the banking index Bankex.

A combined 3.4 million shares have changed hands on the counter till 1416 hours on both the exchanges.