HDFC, HDFC Bank join rate-cutting spree

The country's largest private sector housing finance company, Housing Development Finance Corporation Ltd, has reduced its deposit rates by up to 0.25 per cent across various maturities with immediate effect. At the same time, HDFC Bank, promoted by the company, has decided to slash its deposit rates by up to 25 basis points with effect from Friday.

"The reduction in deposit rates will be by up to 0.25 per cent in various maturities with immediate effect," an HDFC spokesperson said here.

India's second largest private sector lender, HDFC Bank has also reduced its deposit rates by up to 0.25 per cent. The reduction will be effective from tomorrow, HDFC Bank's executive director Paresh Sukthankar said in Mumbai on Thursday.

"This reduction is in line with the market trends and taking into account the developments happening in the market in the recent past," Sukthankar said.

Another official of the bank reportedly said, "Most of our rates are lower than competition. We will now lower rates on our flagship tenures, too, by 25 basis points. There is a downward bias in bulk deposit rates too. There is enough liquidity in the market."

Under pressure from the Reserve Bank of India and the union government, a host of lenders, including the country's largest bank, the government-owned State Bank of India and largest private lender, ICICI Bank, have recently reduced their deposit rates.