New Delhi: Housing finance major HDFC on Thursday announced a hike in its housing loan interest rates by 0.50 per cent effective this month-end or early March.
HDFC Chairman Deepak Parekh said that the bank's margins, which are currently at around two per cent, are under pressure after the latest CRR hike by the RBI and the bank will have to raise the interest rate to maintain that spread.
This would be the second time within a month that HDFC would be raising home loan rates. Earlier this month, it raised the rates by 0.5 per cent after RBI had announced a 0.25 per cent hike in overnight lending rate, Repo, in its monetary review. ICICI Bank had also raised home and car loans by one per cent then.
Four PSU banks - PNB, Bank of India, Bank of Baroda and Union Bank of India - hiked their prime lending rates with effect from Thursday, impacting a range of products, including personal loans, corporate advances, credit to small-scale industries and agriculture loans above Rs 2 lakhs. However, all of them spared home and car loans from the rate hike.
These banks revised the PLR since RBI announced that banks would have to keep more money as cash with the central bank. The move, technically called raising of cash reserve ratio, was made to tame inflation which touched more than a two-year high of 6.73 per cent in early February.
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