HDFC cuts rate by 0.5% for existing and new customers
Housing lender HDFC Ltd on Friday announced a reduction in its retail prime lending rates by 50 basis points (0.50 per cent), effective December 22, 2008.
The advantage of a cut in RPLR will accrue to all the existing floating rate customers over the period of next three months based on their respective reset dates. Similarly the rates of interest on loans to NRIs have also been reduced, HDFC said in a statement.
Speaking on this announcement, Renu Sud Karnad, joint managing director, HDFC Ltd. said, "We have been able to bring down our costs due to improved operational efficiency and good quality portfolio. As in the past, HDFC has ensured that reduction in the cost of its resources translates into a benefit in terms of lower costs for both existing and new customers. HDFC continues to efficiently manage its liabilities and reprice its debts."
"The recent cuts in policy rates by the Reserve Bank of India has created adequate liquidity in the banking system which had a positive impact on the cost of funds. HDFC has always maintained a pre-determined spread, and believes in passing on the benefits to the end users. Further the sharp fall in inflation is an indication that the Interest rates are likely to have a downward bias," she added.
Deposits: HDFC will also reduce its deposit rates by 50 bps across all maturities effective December 23, 2008. On an incremental basis retail deposits for the first seven months, April to October '08, formed 62 per cent of HDFC's funding requirement .
HDFC loan approvals during the six-month period ending September 30, 2008 amounted to Rs 24,180 crore (Rs 241.80 billion) as against Rs 18,948 crore (Rs 189.48 billion) in the corresponding period last year, representing a growth of 28 per cent.
Loan disbursements during the six-month period ending September 30, 2008 amounted to Rs 17,788 crore (Rs 177.88 billion) as against Rs 14,275 crore (Rs 142.75 billion) during the same period in the previous year, representing an increase of 25 per cent.