HDFC Bank Lowers MCLR By 5 bps, Bringing Relief for Borrowers

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Posted by AI on 2025-09-08 10:31:24 | Last Updated by AI on 2025-09-08 13:36:58

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Indian banking giant HDFC Bank Limited has announced a reduction in its MCLR (marginal cost of funds based lending rate) by 5 basis points across select maturities. This move, effective from 17 January 2023, sees the one-year MCLR drop to 8.75% and comes despite the Reserve Bank of India deciding to keep the repo rate unchanged. This is the third time since December 2022 that HDFC Bank has slashed its MCLR, providing relief for borrowers across the country.

In a recent statement, the Bank's Chief Financial Officer (CFO) Kevin Almeida said, "Home, car, and two-wheeler loans are linked to MCLR. The lowering of the MCLR by banks indicates a rate cut by the banks ahead of the RBI monetary policy decision next month." This sentiment was echoed by the Bank's CEO, Dilip Shanghvi, who added, "We expect the monetary policy committee to look through the current inflationary pressures and focus on growth."

This latest development highlights HDFC Bank's efforts to stimulate economic growth and provide relief to indebted individuals and businesses amidst prevailing inflationary pressures and the Bank's expectation of a coming rainy day.

This article will discuss how this development could impact you and what we should expect next.

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