Now Reading: HDFC Bank trims MCLR rates by up to 5 bps
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HDFC Bank trims MCLR rates by up to 5 bps
HDFC Bank has reduced its marginal cost of funds-based lending rates (MCLR) across select tenures by up to 5 basis points (bps), effective August 7, 2026. The revised rates now range from…
The Story in Brief
HDFC Bank has reduced its marginal cost of funds-based lending rates (MCLR) across select tenures by up to 5 basis points (bps), effective August 7, 2026. The revised rates now range from 8% to 8.65%.
The overnight, 1-month, 3-month, 6-month, 1-year, and 3-year MCLR were each cut by 5 bps, while the 2-year MCLR remains unchanged at 8.55%. The bank also recently lowered its base rate to 8.70% and benchmark prime lending rate to 17.20%.
The Indian Opinion
The cut of 5 bps is marginal and only applies to the shrinking pool of MCLR-linked loans. Borrowers on the more common repo-linked loans will not see any change. The bank has also trimmed its base rate and BPLR, suggesting a gradualist approach. The question is whether other banks will follow suit, or if the RBI will need to act first.
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
