HDFC Bank, the country's largest private sector bank has cut the marginal-cost based lending rate (MCLR) by up to 15 bps across all tenors. This rate cut comes after the bank reduced its MCLR by up to 10 bps across all tenors.
The bank has stated that the latest rates will be applicable from December 7.
HDFC Bank's MCLR for 1 year tenor has been brought down to 8.15 per cent from the previous 8.30 per cent. It has been cut by 15 bps. The MCLR for the overnight tenor has been brought down by 15 bps from 7.95 per cent to 7.8 per cent, while the 1 month tenor has been cut from 8 per cent to 7.85 per cent. The 3 month tenor has been reduced from 8.05 per cent to 7.9 per cent and the 6 month tenor has seen a cut from 8.10 per cent to 8 per cent.
For the 2 year and 3 year tenors, the rate cut has been of 15 bps. It has been brought down from 8.4 per cent to 8.25 per cent and from 8.5 per cent to 8.35 per cent respectively.
On Monday, the country's biggest lender State Bank of India also cut its MCLR for its 1 year tenor by 10 per cent. State run Bank of India also cut the 1 year MCLR by up to 20 bps across various sectors. The lender has reduced its MCLR for overnight rates by 20 bps while for other tenors the cut is 10 basis points, a bank statement said, adding the overnight rates will stand at 7.75 percent.
The new one-year MCLR is fixed at 8.20 percent as against 8.30 percent.
The MCLR cuts across banks come as RBI Governor Shaktikanta Das said in a press briefing after the Monetary Policy Meet that the apex bank is not in a hurry to slash interest rates but it would work to make sure that the transmission to the customers is more effective.