HDFC Bank, India’s largest private sector lender, has reduced its savings account interest rates by 25 basis points, effective April 12, 2025. The new rates are 2.75% per annum for balances below ₹50 lakh and 3.25% per annum for balances of ₹50 lakh and above.
This marks the first reduction in savings account interest rates by HDFC Bank in five years. The move is aimed at lowering the bank’s cost of funds and protecting its profit margins in response to the Reserve Bank of India’s recent 25 basis point cut in the repo rate.
Following the announcement, HDFC Bank’s shares surged by as much as 4% to ₹1,876.80, reaching their highest level since December 2024. Analysts view the rate cut as a strategic move to improve the bank’s net interest margin amid a slowing loan growth environment.
In comparison, other major banks offer the following savings account interest rates:
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State Bank of India (SBI): 2.70% per annum for balances less than ₹10 crore; 3.00% per annum for balances of ₹10 crore and above.
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ICICI Bank: 3.00% per annum for balances below ₹50 lakh; 3.50% per annum for balances of ₹50 lakh and above.
This adjustment by HDFC Bank reflects a broader trend in the banking sector, where financial institutions are recalibrating their deposit strategies in response to changes in the monetary policy environment.
