Now Reading: HDFC Bank trims MCLR; NBFC FD rates reach 8.50%
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HDFC Bank trims MCLR; NBFC FD rates reach 8.50%
HDFC Bank has lowered its Marginal Cost of Funds-based Lending Rates (MCLR) by up to 5 basis points on most tenures, effective August 7, 2026. The revised MCLR now ranges from 8%…
The Story in Brief
HDFC Bank has lowered its Marginal Cost of Funds-based Lending Rates (MCLR) by up to 5 basis points on most tenures, effective August 7, 2026. The revised MCLR now ranges from 8% to 8.65%. The overnight, 1-month, 3-month, 6-month, 1-year and 3-year rates each dropped by 5 bps; the 2-year rate remains unchanged at 8.55%, according to the Economic Times.
Meanwhile, Business Today reports that NBFCs are offering fixed deposit rates of up to 8.50% per annum. Muthoot Capital Services leads with 8.50% for three- and five-year deposits, followed by Manipal Housing Finance at 8.25% for one- and three-year tenures. Unlike bank FDs, NBFC deposits are not covered by the DICGC insurance framework, and the RBI is considering harmonising interest rate rules across regulated lenders to improve transparency.
The Indian Opinion
The notion that NBFC FDs are a straight win over bank deposits ignores risk. Yes, Muthoot Capital offers 8.50% on three-year deposits, but these are not insured by DICGC. HDFC Bank’s MCLR cut of 5 bps is modest, yet borrowers get immediate relief. The real test comes when RBI harmonises interest rate rules across lenders, will NBFC yields stay this high once transparency is enforced?
Sources (2): economictimes.indiatimes.com, businesstoday.in
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
