HDFC Bank cuts base rate by 0.05%, effective January 4

HDFC Bank today slashed it base rate by 5 basis points to bring it down to 9.30 percent from the 9.35 percent earlier effective January 4, 2016. The bank has earlier cut rates in August by 0.35 percent. Speaking to CNBC-TV18, Ashish Parthasarthy, Head Treasurer of the bank says that rates are reviewed on a quarterly basis and are adjusted accordingly. The current reduction is base rate will not have much impact on the bank’s margin, he adds. Any further cuts, he says, will depend on movement of deposit rate, he says adding that if deposit rate remains same, then there will not be a significant change in base rate. The current reduction in base rate will not impact the credit growth, which mainly is a function of demand, he says. The bank’s current credit growth stands at 28 percent year-on-year for the second quarter. Parthasarthy expects credit growth to grow at same levels in coming quarters.