HDFC Bank shares up nearly 4% after savings rate cut

After reducing its savings account interest rate by 25 basis points to 2.75 percent, the lowest among its peers in the private sector, HDFC Bank's shares surged by about 4%. At 1:15 pm, the bank's stock was up 61.50 percent, or 3.40 percent, at ₹1,868.10. At ₹1,875.90, the intraday high was 3.84 percent higher than the previous closing.

The interest rate of 2.75 percent applies to deposits under ₹50 lakh. The bank website states that it is 3.25 percent for deposits of at least ₹50 lakh. Just a few days prior, on Wednesday, April 9, the Reserve Bank of India (RBI) lowered the benchmark repo rate by the same 25 basis points, from 6.25 percent to 6 percent. This fresh rate decrease has been in force since April 12.

HDFC's rate is now comparable to Bank of Baroda, which has been offering the same 2.75 percent on deposits up to ₹50 crore since February 27 of last year. The bank has been attempting to boost term deposits since acquiring its home loan parent company, HDFC, in 2023.