HDFC Bank interest rate cut: Lender slashes bulk deposit rates even as SBI, PNB hike theirs

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Updated: February 7, 2018 11:57:19 AM

HDFC Bank has cut its bulk deposit rates across most maturities. The move comes at a time when India's leading banks like SBI and PNB have recently hiked their bulk deposit rates.

HDFC Bank slashes bulk deposit rates, even as SBI, PNB hike ratesSBI had recently hiked interest rates on its bulk deposits by 50-140 basis points (BPS) in a bid to align its bulk deposit rates with retail deposit rates.

HDFC Bank interest rates have been cut. The lender has slashed its bulk deposit rates across most maturities by 100 to 175 bps (basis points) with effect from February 6, 2018. The bank’s domestic, NRE and NRO term deposits’ interest rates for amounts greater or equal to Rs 5 crore have been slashed.

The move, however, comes at a time when India’s leading banks like the State Bank of India (SBI) as well as the Punjab National Bank (PNB) have recently hiked their bulk deposit rates.

It may be noted that SBI had recently raised interest rates on its bulk deposits by 50-140 basis points (BPS) in a bid to align its bulk deposit rates with retail deposit rates. “The hike will not impact cost of funds in a significant manner,” PK Gupta, MD, SBI, had told CNBC TV18.

Domestic/NRE/NRO Term Deposits Interest Rates for amounts greater than or equal to Rs 5 cr (WEF 6th Feb 2018)

Soon after SBI hiking its bulk deposit rates, PNB had announced raising its interest rates by up to 1.25% on domestic term deposits of up to Rs 10 crore for different tenures, effective January 1, 2018. For domestic retail term deposits of less than Rs 1 crore, the rate was increased by 1.25% to 5.25% from the 4% in the maturity tenure of 7 to 29 days. Similarly, in the maturity bucket of 30 to 45 days, the rate had been increased from 4.50% to 5.25%. For the tenure of 46 to 90 days, the interest rate was raised from 5.50% to 6.25%, while it was raised to 6.25% from 6% for the maturity bucket of 91 to 179 days.

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