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HDFC Bank MCLR Cut: New Rates From April 8, 2025

8 April 20251 min read
BANKING & FINANCEHDFC Bank MCLRCut: New RatesFrom April 8, 20258 April 2025safalsetu.com

Why in the news

HDFC Bank lowered its lending benchmark, reversing its February rise in the overnight rate, hinting at easier liquidity and cheaper funds.

Key facts

  • Cut: 10 bps in all tenures, effective 8 April 2025.
  • Band: 9.10%-9.35%; one-year rate 9.30% (was 9.40%).
  • It had raised its overnight MCLR by 5 bps on 7 February, when RBI last cut the repo rate.

About MCLR

  • Marginal Cost of Funds-based Lending Rate: the floor below which banks generally cannot lend.
  • Tenor-linked; stays fixed unless revised.
  • Drivers: marginal cost of funds, operating costs and SLR.
  • Benefits: fair rates and greater transparency.

Significance

  • The one-year MCLR prices corporate and retail loans, so the cut shows softer interest rates after RBI’s February repo cut, its first in five years.

Exam angle

  • MCLR start: 1 April 2016.

Test yourself

1. By how many basis points did HDFC Bank cut its MCLR across tenures from April 8, 2025?

The cut was 10 bps in all tenures.

2. HDFC Bank's one-year MCLR was reduced to what level in April 2025?

It fell from 9.40% to 9.30%.

3. MCLR was implemented by the RBI on which date?

RBI put MCLR into effect on April 1, 2016.

This topic is part of Daily Current Affairs 8 April 2025 (25 topics).

All topics of the dayDay quizApril 2025

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