Base Rate Cut By Hdfc

After initial dithering, banks are now falling in line to cut interest rates after the RBI asked them to do so last month. A low interest rate cycle is on the anvil with a majority of banks now settling to cut lending rates by 5-10 basis points.

In a statement issued on Thursday Jefferies said State Bank of India (SBI) and HDFC bank have reduced their base rates by 15 basis points (bps) and 25 bps, respectively.

The country's second largest private sector lender, HDFC Bank, has reduced base rate or the minimum lending rate by 0.05 per cent to 9.30 per cent. The reduction in base rate will bring down interest rate on all loans.

Earlier this week, Reserve Bank has also framed draft guidelines suggesting banks to migrate by April 1, 2016 to calculating base rate on marginal cost of funds rather than the current practise where different banks follow different norms to decide the minimum lending rate.

In good news for home and auto loan borrowers, HDFC Bank has slashed its base rate, or minimum lending rate, a move that is expected to be followed by other major banks.

The US financial behemoth's action comes on the heels of lending rate cuts by its domestic peers like SBI, ICICI Bank and HDFC Bank.

The base rate of the bank is 9.70 per cent with effect from June 15, HDFC Bank said on its website.

HDFC Bank, the countrys No.3 lender, will cut base rate by 10 basis points, or 0.1 per cent, to 9.6 per cent, a source familiar with the matter said on Thursday.

After initial dithering, banks are now falling in line to cut interest rates after the RBI asked them to do so last month. A low interest rate cycle is on the anvil with a majority of banks now settling to cut lending rates by 5-10 basis points.

In a statement issued on Thursday Jefferies said State Bank of India (SBI) and HDFC bank have reduced their base rates by 15 basis points (bps) and 25 bps, respectively.

The country's second largest private sector lender, HDFC Bank, has reduced base rate or the minimum lending rate by 0.05 per cent to 9.30 per cent. The reduction in base rate will bring down interest rate on all loans.

Earlier this week, Reserve Bank has also framed draft guidelines suggesting banks to migrate by April 1, 2016 to calculating base rate on marginal cost of funds rather than the current practise where different banks follow different norms to decide the minimum lending rate.

In good news for home and auto loan borrowers, HDFC Bank has slashed its base rate, or minimum lending rate, a move that is expected to be followed by other major banks.

The US financial behemoth's action comes on the heels of lending rate cuts by its domestic peers like SBI, ICICI Bank and HDFC Bank.

The base rate of the bank is 9.70 per cent with effect from June 15, HDFC Bank said on its website.

HDFC Bank, the countrys No.3 lender, will cut base rate by 10 basis points, or 0.1 per cent, to 9.6 per cent, a source familiar with the matter said on Thursday.