HDFC Bank becomes the second lender after YES Bank to hike its lending rate to 9.8% after the RBI's status-quo over monetary policy last week
HDFC Bank, the country’s second largest private sector lender raised its benchmark lending rate by 20 basis points to 9.80%. This would auto, corporate and other loans linked with base rate or the minimum lending rate costlier for borrowers of the Bank.
Base rate is dependent on cost of deposit, which have gone up in the recent past both on account of RBI measures and increase in short term deposit rates, the lender said.
Earlier, in March, HDFC Bank reduced its benchmark lending rate to 9.60% from 9.7% after the Reserve Bank of India (RBI) cut its repo rate by 0.25%.
HDFC Bank becomes the second lender after YES Bank to hike lending rate after the status-quo monetary policy review of RBI last week.
Last month, HDFC Bank had raised fixed deposit rates by 1% for maturities between 15 days to 6 months and one day effective 27th July. The bank increased the interest rate by 0.75% for maturity buckets less than one year but over 6 months one day.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam