New Delhi, April 15 -- Shares of HDFC Bank surged nearly 4 percent on Tuesday, April 15, after the private sector heavyweight announced a cut in its savings account interest rate to 2.75 percent for deposits below Rs.50 lakh. The revision, effective from April 12, brings HDFC Bank's offering below that of key competitors, marking the lowest savings rate among large private sector lenders.

As per the bank's website, the interest rate has been reduced by 25 basis points. Deposits exceeding Rs.50 lakh will now earn an interest of 3.25 percent per annum. Notably, this is the first such revision by the bank in this slab since June 2020, during the COVID-19 pandemic. The rate cut comes on the heels of the Reserve Bank of India's second success...