Mumbai's Economic Offences Wing (EOW) is set to question HDFC Bank 's top leadership in connection with the ongoing Lilavati Hospital Trust case, marking a significant development in the investigation.

Key Points

• Investigation Target: HDFC Bank's MD & CEO, Sashidhar Jagdishan
• Investigating Authority: Mumbai Police's Economic Offences Wing
• Case in Focus: Lilavati Hospital Trust case

Details of the Development

The Economic Offences Wing of Mumbai Police has decided to call in Sashidhar Jagdishan, the Managing Director and CEO of HDFC Bank, for questioning. This move brings the bank's top leadership into the ambit of the ongoing investigation related to the Lilavati Hospital Trust case.

Implications

This development signifies:

1. The expanding scope of the investigation
2. Potential scrutiny of HDFC Bank's involvement or knowledge regarding the case
3. Increased attention on corporate governance and accountability in the banking sector

What's Next

As the investigation unfolds, it remains to be seen:

• The nature and extent of questions posed to Jagdishan
• Any potential impact on HDFC Bank's operations or reputation
• Further developments in the Lilavati Hospital Trust case

It's important to note that being called for questioning does not imply wrongdoing. As the investigation is ongoing, more details are expected to emerge in the coming days.

Investors and stakeholders of HDFC Bank will likely be watching these developments closely, given the bank's prominent position in India's financial sector.

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.