HDFC Bank, the second largest private sector bank, on Monday reduced its prime lending rate (PLR) to pass on the benefits to its corporate customers.
The bank does not have any retail loan customers with floating rates. The retail loans it provides, like car loans, personal loans and loans against gold, are all at fixed rates.
The bank’s PLR has been reduced by 25 basis points to 15.75 per cent, HDFC Bank sources said.
The cut in PLR follows a reduction in deposit rates by the bank a month ago. About 85 per cent of loans to companies are linked its PLR.
The highest interest rate HDFC Bank offers is 7.25 per cent on a two-year deposit.
ICICI Bank’s highest rates are 8 per cent for 990-day deposits and 8.25 per cent for above 5 years.
ICICI Bank had reduced its benchmarks for floating rates by 50 basis points last month. The reduction in the benchmark for home loans was brought down to 12.75 per cent and for corporate loans to 14.75 per cent.