HDFC Bank shares remained relatively stable on Tuesday, trading flat at ₹706.45 on the NSE at 10:29 am after opening at ₹707.10. The stock moved between ₹704.70 and ₹708.90 during the session, with the pre-open session beginning at ₹713. As reported by The Hindu BusinessLine, the stock had closed at ₹710.50 on Monday and previously hit a 52-week low of ₹639.45. The trading activity showed sell quantity at 51.81% or 13,44,614 shares, while buy quantity stood at 48.15% or 12,50,545 shares. Total traded volume reached 33.33 lakh shares with traded value at ₹235.53 crore.
HDFC Bank has implemented significant reductions to its Marginal Cost of Funds-based Lending Rates (MCLR) across seven tenures, effective September 7, 2026. According to reports from Business Standard, the cuts range between 5 to 10 basis points depending on the tenure, with the revised rates now ranging from 7.90% to 8.60%. This represents a notable shift from the previous range of 8% to 8.65% in August 2026. However, the cut does not mean every borrower will immediately see a lower equated monthly instalment (EMI). The actual impact depends on the benchmark linked to the loan, its reset frequency and the spread charged by the bank. As Business Standard reports, existing borrowers should not assume that the revised MCLR will automatically change their EMI from September. ZeeBiz analysis shows that even a 0.10 percentage point reduction can make significant savings on large loans over time.
The overnight and one-month MCLR rates have both been reduced by 10 basis points to 7.90% from the previous 8%. As reported by Business Standard, these tenures continue to carry the lowest rates among the seven listed benchmarks. The three-month MCLR has been adjusted to 8.05% from 8.15%, representing another 10-basis-point reduction. The six-month rate has declined to 8.25% from 8.30%, receiving a smaller 5-basis-point cut. A basis point is one-hundredth of a percentage point, meaning a 10-basis-point reduction represents a 0.10 percentage point fall.
The one-year MCLR has been lowered to 8.35% from 8.40%, marking a 5-basis-point reduction. According to Business Standard, the two-year rate has declined to 8.45% from 8.55%, bringing the 2-year benchmark reduction to 10 basis points. For the three-year tenure, HDFC Bank has reduced the MCLR to 8.60% from 8.65%, with this benchmark remaining the highest among the listed tenures after receiving a 5-basis-point cut. The three-year MCLR remains the highest at 8.60% per cent, while the overnight and one-month MCLR are now the lowest at 7.90%.
A 0.10 percentage point reduction may appear modest, but it can bring significant relief on large loans with extended repayment periods. Using a practical example, if a borrower has a ₹50 lakh home loan with 20 years remaining and the rate drops from 8.50% to 8.40%, the EMI decreases from approximately ₹43,391 to ₹43,075, saving around ₹316 monthly or ₹3,792 annually. Over the full 20-year period, total savings could reach approximately ₹75,840. Alternatively, borrowers can choose to maintain the same EMI amount and use the lower rate to shorten the loan tenure by 4-5 months, potentially achieving higher overall interest savings. However, as ZeeBiz notes, the actual savings depend on the borrower's current interest rate, outstanding principal, and remaining repayment period, with the revised rates taking effect only when the next reset becomes due.
HDFC Bank's gold loan portfolio demonstrated strong growth, rising 34% year-on-year to ₹237 billion in FY26 and standing at ₹255 billion in June 2026, up 8% quarter-on-quarter. As reported by The Hindu BusinessLine, citing a Motilal Oswal Financial Services report, large private banks are stepping up investments in gold lending and could gain market share in higher-ticket loans as strong growth, attractive returns and rising customer acceptance make the segment increasingly competitive. The expansion is already visible in the loan books of several private banks.
HDFC Bank's CEO succession process has gained importance after managing director and chief executive Sashidhar Jagdishan opted out of the reappointment process last month. Jagdishan will complete his current term on October 26 after spending nearly three decades at the bank in various capacities. The HDFC Bank board said it will fast-track the process of selecting and appointing his successor well within time. Additionally, the bank had earlier informed exchanges that it had elected to exercise the call option for ₹739 crore Additional Tier 1 Notes issued on September 30, 2021, in the form of rupee-denominated bonds overseas.
