HDFC Bank reduces lending rates
HDFC Bank, the second largest private sector lender in the country, has reduced its lending rates by 20 basis points (bps), sources told Business Standard.
The bank has reduced its base rate or minimum lending rate to 9.8 per cent and the benchmark prime lending rate (BPLR) to 18.3 per cent. The cuts are effective from tomorrow.
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HDFC had kept its lending rates unchanged since August 2011. At the time, it had increased its base rate to 10 per cent and BPLR to 18.5 per cent.
ICICI Bank had reduced its lending rates in April 2012.
It had cut its base rate and BPLR by 25 bps each, to 9.75 per cent and 18.5 per cent, respectively.
|BPLR: Benchmark prime lending rate |
Figures in %
According to sources in Axis Bank, there was no immediate plan to revise lending rates, though the bank has not changed its lending rates since August 2011. Its base rate is currently 10 per cent and the BPLR is 17.75 per cent.
State Bank of India has also refrained from reducing its base rate in recent months.
The country’s largest commercial bank has, however, cut interest rates on loans to exporters, small and medium enterprises and farmers.
In April, the Reserve Bank of India had cut the repo rate by 50 bps after increasing this on 13 occasions between March 2010 and October 2011. The cut was aimed at reviving the slowing growth of the Indian economy.
However, the banking regulator left the rate unchanged in its mid-quarter policy review earlier this month, as inflation continued to remain elevated.