Mumbai: India’s second-largest private sector lender, HDFC Bank Ltd, said on Monday it was cutting its prime lending rate by 50 basis points to 16% following rate cuts by the central bank on the weekend.
The reduction would be in two stages of 25 basis points each from 15 December and 1 January, the bank said in a statement.
The prime lending rate is what the bank charges its top-rated customers.
India’s central bank on Saturday cut its key short-term lending rate by 1 percentage point to 6.5% to boost growth and shore up investor sentiment.
Shares in HDFC Bank closed up 1% at Rs898 in a firm Mumbai market, ahead of the rate cut announcement.