HDFC Bank on Thursday reduced the marginal cost-based lending rate (MCLR) for two- and three-years tenors by 5 basis points to 8.85% and 9% respectively, according to the lender\u2019s website. The country\u2019s largest private sector lender by market capitalisation has reduced the rates after back-to-back rate hikes in December and January. MCLR for one, two and three-year tenors was raised by 5 bps in January to 8.75%, 8.90% and 9.05% respectively, while the rate was hiked by 5 bps for one, three and six-month tenors by 5 bps each in December 2018. HDFC Bank\u2019s overall advances grew 23.8% year-on-year (y-o-y) to nearly Rs 7.8 lakh crore as of December 31, 2018. The domestic retail loans grew by 24% y-o-y and domestic wholesale loans were up 24.1% y-o-y. The domestic loan mix as per Basel-II classification between retail and wholesale was 55:45, a statement from the lender said. Read | Gold prices fall to Rs 33,070 per 10 grams in Delhi today; 2 key reasons \u201cHDFC Bank has been consistently gaining market share across retail product segments, including personal loans and auto loans. Strong capitalisation and liquidity levels should enable the bank to sustain this growth momentum over the next few years,\u201d analysts at Motilal Oswal said. Bank of Baroda (BoB) has also reduced its MCLR by 10 bps for overnight, one-month, three months, six months and one-year tenors to 8.25%, 8.30%, 8.40%, 8.60% and 8.65%, with effect from March 7, according to the lender\u2019s website. \u201cBoB has been reporting healthy traction in domestic loan growth while operating metrics are showing a gradual improvement. We expect fresh slippages to moderate over FY20 and estimates of FY21 while steady improvement in provisioning coverage should ease incremental provisioning requirements,\u201d said the analysts at Motilal Oswal. Earlier this month, Punjab National Bank (PNB) had cut MCLR by 10 bps and Kotak Mahindra Bank reduced MCLR by 5 bps for over-night, three months, six months and one-year tenors. While, Allahabad Bank reduced the MCLR by 10 bps across all tenors in February. Also read | Rising unemployment, falling labour force: Is India in a big trouble? \u201cPNB\u2019s business momentum continues to be soft with 4% y-o-y dip in loan growth following over 60% y-o-y fall in overseas advances and below trend domestic growth at sub-10% level. More importantly, deposit growth seems to be under pressure,\u201d analysts at Edelweiss said. Operational issues that PNB is facing will continue to pose a challenge and the road to recovery will be \u2018arduous\u2019, the analysts added. India\u2019s second-largest private lender, ICICI Bank had last cut its MCLR on one-month, three-month and six-month tenors by 10 bps each to 8.55%, 8.60% and 8.75% respectively in December 2018. The total amount of loans disbursed in Q3FY19 stood at Rs 53,600 crore to 230 crore loan accounts against Rs 35,800 crore to 175 crore loan accounts in Q3FY18, showed data compiled by KIE. \u201cLoan growth in the banks was supported by strong customer additions, with nearly 24% y-o-y growth in the loan accounts,\u201d the KIE analysts said.