According to an Economic Times news report, HDFC Bank has reduced its Marginal Cost of Fund Based Lending Rates (MCLR) by five basis points. This reduction is applicable across all tenures.
One basis point is equal to 0.01 percentage point. The new rates are effective from 7th November 2017. A bank spokesperson said that the one year MCLR has been reduced to 8.10 percent while the six month MCLR is 7.90 percent. The table given below shows MCLR for different tenures-
|Tenor||MCLR in %|
Earlier this month, Bank of Maharashtra reduced its MCLR by 0.05 percent across all tenures up to one year. HDFC follows its peers in carrying out an MCLR reduction.