India`s HDFC Bank hits four-month high as deposit rate cut seen lifting margins
Shares of India's HDFC Bank rose as much as 4% on Tuesday to 1,876.80 rupees and were set for their best day in 10 months, after its deposit rate cuts were seen as a margin boost amid slowing loan growth in the industry.
India's largest private lender rose to 1,876.80 rupees as of 8:53 a.m. GMT, its highest since early December, after the bank cut savings deposit rates by 25 basis points across tiers - its first cut in the under-5-million-rupee ($58,263) category in five years.
Brokerage Macquarie said the rate cut could boost HDFC Bank's margins by five basis points starting the first quarter of fiscal 2026, while Jefferies estimated it would reduce costs on 23% of its deposits.
"HDFC Bank already had room to cut... We expect more banks to cut savings deposit rates in coming quarters," Macquarie analyst Suresh Ganapathy said.
Jefferies added that private banks may cut rates faster compared to state-run lenders. Nifty private bank index has added nearly 3% on the day, in its best session since early June.
($1 = 85.8175 Indian rupees)
(This story has been refiled to correct the time stamp in paragraph 2)
