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HDFC Bank Cuts Base Lending Rate by 55 bps to 8.10%
Leading private sector bank, HDFC has reduced its base rate by 55 bps to 8.10 percent with effect from May 22, 2020. The announcement came after the Reserve Bank of India revised major policy rates such as 40 bps cut in repo rate and reverse repo rate.
The RBI noted in its address to the media that rate reduction targets better liquidity to customers and it is expected that banks will transmit the cheaper lending to customers. Soon after the RBI’s decision to cut the benchmark lending rates, the HDFC bank has cut its base rate.
The base rate is the minimum rate below which the bank does not lend to its customers. The repo rate now stands at 4 percent and the reverse repo rate stands at 3.35 percent.
