Archive · 7 Sep 2026
HDFC Bank Cuts Lending Rates Amid Surplus Liquidity Pressure
HDFC Bank has made some loans slightly cheaper by lowering its lending-rate benchmarks.
The cuts range from 5 to 10 basis points, depending on the loan period.
The new rates took effect on September 7.
Banks currently have a very large amount of extra money available to lend.
This extra money may make banks compete more strongly for customers.
That competition could push lending rates lower.
However, people and businesses are still borrowing actively.
Bank credit was growing by 18.3% compared with the same time last year.
HDFC Bank reduced its marginal cost of funds-based lending rates by 5-10 basis points across all listed tenures.
The revised MCLR, effective September 7, now ranges from 7.90% to 8.60%, compared with 8.00% to 8.65% previously.
Overnight, one-month, three-month, and two-year MCLRs were each cut by 10 basis points.
Six-month, one-year, and three-year MCLRs were reduced by 5 basis points each.
Banking-system surplus liquidity reached Rs 11.16 lakh crore, while bank credit grew 18.3% year-on-year as of August 15.
- Who
- HDFC Bank, amid broader conditions affecting banks and borrowers.
- What
- The bank cut its marginal cost of funds-based lending rates by 5-10 basis points across tenures.
- When
- The revised rates took effect on September 7; banking credit data cited was as of August 15.
- Where
- HDFC Bank's published rate schedule and the broader banking system.
- Why
- Surplus liquidity may encourage banks to lend more aggressively and compete for quality borrowers, putting downward pressure on lending rates.
- Rate change
- MCLR reduced by 5-10 basis points across tenures
- New MCLR range
- 7.90%-8.60%
- Effective date
- September 7
- Largest cuts
- 10 basis points for overnight, one-month, three-month, and two-year rates
- Liquidity surplus
- Rs 11.16 lakh crore as of Sunday
- Credit growth
- 18.3% year-on-year as of August 15
- FCNR(B) deposits
- HDFC Bank was estimated to have mobilised around $12 billion