Private sector lender HDFC Bank may reduce interest rates on select retail loan products for the festive season. The bank's Executive Director Mr. Paresh Sukhtankar made this announcement and said, "From a tactical point of view, we will respond to the market, remain competitive. If the market is moving in a certain direction, we will also remain competitive and I think that is something which we will roll out in the next few weeks."
But, he remained tightlipped on the nature of action that the bank is contemplating and on being asked to disclose details he said, "I do not have anything to convey in a definitive manner."
It is to be noted that ICICI Bank cuts its interest rates on home loans by 1 percent last week. It was followed by Vijaya Bank, which slashed 80 bps on home, car loans. Earlier, State Bank of India had reduced rates on its loan products. In addition to this, SBI had even decreased its base rate triggering off a series of rate cuts by other banks.
On a similar reduction in base by HDFC Bank, Mr. Sukhtankar said that the bank depends on the movement of interest rates on deposits and the credit policy followed by the RBI for such a cut in base rate. He further added that the bank is also contemplating a base rate cut for this quarter.