HDFC Bank , one of India's leading private sector banks, has strongly denied allegations made by trustees of the Lilavati Kirtilal Mehta Medical Trust, calling them false and defamatory. The bank has taken a firm stance against these claims, emphasizing its commitment to legal compliance and high governance standards.

Bank's Response

In a decisive move, HDFC Bank has not only refuted the allegations but also initiated legal proceedings to protect its interests. A spokesperson for the bank stated that the claims made by the Lilavati Trust trustees are baseless and lack any factual foundation.

Legal Action

The bank's response goes beyond mere denial. HDFC Bank has warned of further legal action against individuals or entities that continue to propagate these allegations. This stern warning underscores the seriousness with which the bank views the situation and its determination to defend its reputation.

Commitment to Compliance

HDFC Bank has reiterated its unwavering commitment to full compliance with all applicable laws and governance standards. This assertion comes as a direct counter to any implications of impropriety suggested by the trustees' allegations.

Implications

This development highlights the challenges financial institutions face in maintaining their reputation in an era of rapid information dissemination. HDFC Bank's quick and assertive response demonstrates its proactive approach to addressing potentially damaging claims.

As this situation unfolds, stakeholders and industry observers will likely be watching closely to see how this dispute between a major financial institution and a prominent trust plays out in the legal arena.

HDFC Bank , one of India's leading private sector banks, has announced a reduction in interest rates for both fixed deposits (FDs) and savings accounts, effective June 10, 2025. This move is likely to impact a significant number of the bank's customers across various deposit segments.

Fixed Deposit Rate Adjustment

For fixed deposits below ₹2 crore, HDFC Bank has revised its interest rate structure. The maximum interest rate now stands at 7.25%, which will be applicable for deposits with a tenure of 4 years and 7 months. This adjustment in FD rates could potentially affect investors looking for higher returns on their long-term deposits.

Changes in Savings Account Rates

In addition to the FD rate cut, HDFC Bank has also reduced the interest rates on savings accounts for high-value depositors. Customers with savings account balances exceeding ₹50 lakh will now earn an interest rate of 3.00%, down from the previous rate of 3.50%. This 50 basis points reduction represents a significant decrease for customers maintaining substantial balances in their savings accounts.

Implications for Customers

The rate cuts across both fixed deposits and savings accounts suggest a broader strategy by HDFC Bank to manage its cost of funds. For customers, these changes mean:

1. Lower returns on new fixed deposits below ₹2 crore
2. Reduced interest earnings on high-value savings accounts (balances above ₹50 lakh)
3. A potential need to reassess their savings and investment strategies

Market Context

While the specific reasons for these rate adjustments have not been disclosed, such moves are often influenced by broader economic factors, including the Reserve Bank of India's monetary policies, liquidity conditions in the banking system, and overall credit demand.

Customers of HDFC Bank are advised to review their deposit portfolios in light of these changes. Those considering new fixed deposits or maintaining high balances in savings accounts may want to explore alternative investment options or compare rates across different banks to optimize their returns.

As always, it's recommended that investors and depositors consult with financial advisors to make informed decisions based on their individual financial goals and risk profiles.