Mumbai: HDFC Bank Ltd, the country’s second largest private sector, reduced its minimum lending rate or base rate by 10 basis points (bps) to 9.7% effective Monday. One bps is 0.01 percentage point.
The benchmark prime lending rate (BPLR), the main rate for the bank’s old borrowers, has also been cut by 10 bps to 18.2%.
HDFC Bank’s move comes a little less than a month before the Reserve Bank of India’s quarterly policy review, which is due on 29 January. HDFC Bank’s private sector rival ICICI Bank Ltd’s base rate is 9.75% and was last changed on 23 April 2012.
HDFC Bank stock was down 0.32% at Rs.675 per share, even as the benchmark 30-share Sensex was down 0.06% at 19,433 points at 02:10pm.