HDFC Bank , one of India's leading private sector banks, has announced a reduction in its Marginal Cost of Funds-based Lending Rates (MCLR) by up to 10 basis points across select loan tenures. This change, effective from November 7, is set to impact borrowers with loans linked to the MCLR.

Key Changes in MCLR

The revised MCLR structure now stands as follows:

Impact on Borrowers

This adjustment in MCLR will affect different categories of borrowers:

• MCLR-linked Loans: Customers with home, auto, or personal loans tied to the MCLR will see their interest rates adjusted during the next reset period.
• External Benchmark-linked Loans: Borrowers whose loans are linked to external benchmarks, such as the RBI's repo rate, will not be affected by this change.

Understanding MCLR

MCLR serves as banks' internal reference rate for determining lending rates. It takes into account several factors:

1. Marginal cost of funds
2. Operating expenses
3. Tenure premium

This rate cut by HDFC Bank could potentially lead to slightly lower EMIs for borrowers with MCLR-linked loans, depending on their loan terms and the specific MCLR tenure their loan is tied to.

As the banking sector continues to evolve, such rate adjustments reflect the dynamic nature of the lending environment. Borrowers are advised to stay informed about these changes and understand how they might impact their loan repayments.

HDFC Bank , India's largest private sector bank by balance sheet size, has taken a significant step in its leadership continuity. The bank's Board of Directors has approved the re-appointment of Kaizad Bharucha as Deputy Managing Director for a three-year term, subject to regulatory and shareholder approvals.

Key Details of the Re-appointment

Bharucha's Journey with HDFC Bank

Kaizad Bharucha's association with HDFC Bank spans nearly three decades, having joined the institution in October 1995. His journey within the bank has been marked by significant contributions and steady progression:

• Joined HDFC Bank's board in 2014
• Longest-serving executive board member
• Elevated to Deputy Managing Director in April 2023

Areas of Responsibility

In his current role, Bharucha oversees critical aspects of HDFC Bank's operations:

• Assets franchise, including:
  • Retail asset products (Home Loans, Auto Loans, Personal Loans, etc.)
  • Rural Banking
  • MSME and SME segments
  • Wholesale segments (Emerging Corporate Group, Healthcare Finance, Corporate Banking)
• Corporate Social Responsibility initiatives
• ESG (Environmental, Social, and Governance) matters
• Inclusive Banking Initiatives Group

Professional Background

Before his tenure at HDFC Bank, Bharucha gained valuable experience in the banking sector:

• Worked with SBI Commercial and International Bank from 1986 to 1995
• Holds a Bachelor's degree in Commerce from Sydenham College, University of Mumbai

Strategic Contributions

Bharucha has been instrumental in several key areas of HDFC Bank's growth and development:

1. Risk Management: Played a crucial role in formulating credit and risk management policies.
2. Mergers and Acquisitions: Actively involved in due diligence and integration processes for significant mergers, including the recent HDFC Ltd merger.
3. Government Initiatives: Led the bank's participation in various government schemes, achieving top rankings among private sector banks in several programs.
4. Technology Transformation: Drove technological advancements, particularly in wholesale business and credit functions.
5. Corporate Social Responsibility: Under his leadership, HDFC Bank's CSR initiatives have been ranked among the top three in the country.

Board Committees

Bharucha serves on several important committees of HDFC Bank's board:

• Stakeholders' Relationship Committee
• CSR & ESG Committee
• Fraud Monitoring Committee
• Credit Approval Committee
• Committee for Resolution of NCLT Matters

This re-appointment underscores HDFC Bank's commitment to leadership continuity and strategic growth. As the bank navigates the evolving financial landscape, Bharucha's extensive experience and proven track record are expected to play a crucial role in shaping its future trajectory.