HDFC Bank Cuts MCLR by up to 10 Basis Points

HDFC Bank has reduced its Marginal Cost of Funds-based Lending Rates (MCLR) by up to 10 basis points (bps) across select loan tenures, offering potential relief to borrowers whose loans are linked to this internal benchmark. The revised rates came into effect on November 7, 2025.

MCLR is the internal benchmark rate used by banks to determine lending rates for different loan products. A reduction in this rate means a lower interest burden for borrowers at their next loan reset date.

Revised MCLR Rates

Following the revision, HDFC Bank’s MCLR now ranges between 8.35% and 8.60%, compared to 8.45% and 8.65% earlier.

The one-year MCLR, typically used as a benchmark for home and personal loans, has been cut by 10 basis points to 8.50%.

Who Will Be Impacted?

Borrowers with home, auto, or personal loans linked to HDFC Bank’s MCLR will see their interest rates adjusted during their next reset period, depending on their loan agreement.

However, customers whose loans are tied to external benchmarks such as the Reserve Bank of India’s (RBI) repo rate will not be affected by this change. For these borrowers, rate changes are directly linked to movements in the central bank’s policy rates.

Understanding MCLR

The MCLR is an internal reference rate that banks use to set lending rates for different loan tenures. It is based on the marginal cost of funds, operating expenses, and the tenure premium associated with the loan.

Introduced by the Reserve Bank of India in 2016, MCLR replaced the earlier base rate system to improve the transmission of monetary policy changes to end borrowers.

HDFC Bank Share Price Performance

On November 10, 2025, HDFC Bank share price opened at ₹982.30, compared to the previous close of ₹982.30. During the session, the stock touched a high of ₹990.95 and a low of ₹980.20. At 1:16 PM IST, it was trading at ₹987.90, up by 0.57%.

The stock recorded a traded volume of 87.76 lakh shares and a traded value of ₹865.80 crore on the NSE. The market capitalisation stood at ₹15,18,986.67 crore. Over the past 52 weeks, HDFC Bank has hit a high of ₹1,020.50 and a low of ₹812.15. The stock is currently trading at a P/E ratio of 20.68.

Read More: Is India Moving Towards Just Four Public Sector Banks?

Conclusion

HDFC Bank’s decision to lower its MCLR by up to 10 basis points is expected to marginally ease borrowing costs for customers with loans linked to this benchmark. The move comes as part of the bank’s periodic rate adjustments and reflects current market conditions and funding costs.

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