HDFC Bank cuts lending rate by 20 bps on decline in borrowing cost; one-year MCLR revises to 7.95%

Mumbai: Largest private sector lender HDFC Bank has cut its lending rate by 0.20 percent, amidst a gradual decline in the cost of borrowing across the system.

The marginal cost of funds based lending rate (MCLR) has been reviewed across tenors since Tuesday, according to its website.Click here to follow LIVE news and updates on stock marketsThe revised overnight MCLR stands at 7.60 percent, while the one-year MCLR, to which a host of loans are linked, has been reviewed to 7.95 percent.The three-year MCLR stands at 8.15 percent from 7 April onwards, it said.Rates across the banking system have been headed south for the last few months, as the RBI and the government work in tandem to push the sagging economic growth. The RBI last month cut the policy rate by 0.75 percent to spur growth amid the COVID-19 crisis.