HDFC Bank cuts base rate by 10 bps, stock down

Country's second largest private sector lender HDFC Bank was down marginally in early trade on Monday. CNBC-TV18 reported that the bank will reduce its base rate by 10 basis points to 9.7 percent with effect from January 1st.

With this base rate cut, HDFC Bank has the lowest base rate among major lenders, lower than that of State Bank of India and ICICI Bank.

According to The Financial Express report, the benchmark prime lending rate (BPLR) of the bank will be lowered to 18.20 percent. HDFC Bank had previously reduced its benchmark lending rates by 20 bps in June.

In September, SBI had reduced its base rate by 25 basis points to 9.75 percent while ICICI Bank's base rate also stands at 9.75 percent.

At 09:52 hours IST, HDFC Bank fell 0.38 percent to Rs 675 on the Bombay Stock Exchange.