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In a relief to home loan borrowers, HDFC Bank has reduced its marginal cost-based lending rates (MCLR) by 5-10 basis points across tenors. The new rates are effective April 8.
India's largest private sector bank has cut its overnight MCLR to 8.30 percent from 8.35 percent and one-month rate to 8.30 percent from 8.40 percent. The three-month MCLR has been revised to 8.40 percent from 8.45 percent, six-month rate to 8.50 percent from 8.55 percent, one-year rate to 8.70 percent from 8.75 percent, two-year rate to 8.80 percent from 8.85 percent and three-year rate to 8.95 percent from 9 percent.
It had last revised its MCLR on March 7.
The Reserve Bank of India (RBI) has reduced its key policy rate by 50 basis points (100 bps=1 percentage point) in two consecutive rate cuts since February. In response, lenders have not been able to pass on the entire benefit to customers due to tight liquidity conditions.
On April 4, RBI Governor Shaktikanta Das said banks needed to do more and that the regulator was working on new guidelines for effective and faster transmission of policy rate actions to borrowers.
In related news, Bank of Maharashtra has also reduced its MCLR by five basis points across tenors, effective April 7. Its one-year MCLR has been reduced to 8.70 percent from 8.75 percent.
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