Kolkata, July 9 (IANS) Yes Bank is planning to raise its investment in the educational infrastructure sector 10 times to Rs.5,000 crore by 2015, a top official said here Saturday.

The bank has so far pumped in Rs.500 crore in the sector, said Rana Kapoor, the bank's managing director and chief executive officer.

Kapoor said the bank's investment in the sector now is less than one percent of its total loan book.

"By 2015, we want to account for about five percent of our total loan book," Kapoor said.

There was lot of untapped potential in the sector as the payback time for educational infrastructure loan is one-third of the 11-12 year period in normal infrastructure loans.

He said the bank was open to investing both in institutions run through private and public-private-partnership models.

Asked about the interest rates, he said: "If at all a rate hike is necessitated, then it could be in the range of 25-50 basis points. It, however, looks unlikely."

Kapoor, who was here to attend the launch of the bank's new branch, said half of the country's total unbanked population could come into the banking system if the rates were deregulated.

He said the bank was planning to increase its exposure by five times in case of microfinance institutions over the next one year. Its exposure was Rs.300 crore as on March 31 this year. The bank was eyeing Rs.1,500 crore by 2012.