Indian stock markets shut for Eid celebrations
Indian stock exchanges are shut Thursday for Eid, with normal trading activities resuming Friday.
Country’s largest private sector lender, HDFC Bank has cut its marginal cost of funds-based lending rates (MCLR) on all tenors by 10 basis points. The latest rates came into effect with effect from today (Friday) onwards.
The development comes a day after the Reserve Bank of India (RBI) announced to keep the repo rate and the reverse repo rate unchanged.
According to the HDFC Bank website, post the rate cut, the overnight MCLR stands at 7 per cent, the one month tenor stands at 7.05 per cent while the three-month MCLR is 7.10 per cent. The MCLRs for six months, one year and two years stand at 7.20 per cent, 7.35 per cent and 7.45 per cent, respectively.
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Banks generally review MCLRs every month. ICICI Bank recently announced to reduce its MCLR by 10 bps across tenors with effect from August 1.
On Thursday, the Reserve Bank of India (RBI) maintained the repo rate or short-term lending rate for commercial banks, at 4 per cent. The reverse repo rate has also been maintained at 3.35 per cent.
However, the central bank maintained an accommodative stance, which could continue until the economy is fully revived, thus opening up possibilities for more future rate cuts.
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