HDFC Bank cuts MCLR by up to 10 bps
Private sector lender, HDFC Bank has cut MCLR rates by between 5 bps and 10 bps for these tenors: 6-month, 1-year, 2-year and 3-year. These rates will be effective from today, i.e., November 7. In August, the bank had cut MCLR across all tenors.
It has kept the overnight, 1-month and 3-month MCLR rates unchanged.
|Tenure wise MCLR||MCLR rate (October 2019)||MCLR Rate (November 2019)|
|HDFC Base Rate||9.30%||9.20%|
The last time HDFC Bank cut MCLR rates was in August. That time it had cut rates across all tenors by 10 bps.
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Since the start of year, the Reserve Bank of India (RBI) has cut the repo rate five times in a row for a total of 135 bps. Following suit, banks too, have been cutting interest rate on loans albeit not at the same rate.
To make the rate transmission happen faster, RBI had mandated all banks to move from the MCLR regime to externally benchmark all their floating rate loans. Most public sector banks, like State Bank of India, Central Bank of India and so on, have started offering loans linked to an external benchmark. However, private sector lenders like HDFC Bank are yet to move to the new regime.