New Delhi: A key player in the home loan market, HDFC on 15 February said it would hike housing loan rates by another 0.50% this month-end or early March.
“After the CRR hike, our margins, presently at around 2%, are under pressure and we will raise the interest rate to maintain that spread,” HDFC Chairman Deepak Parekh told reporters.
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% after Reserve Bank of India announced a 0.25% hike in overnight lending rate, Repo, in its monetary review. ICICI Bank had also raised home and car loans by 1% then.
From 15 Feb, four PSU banks -- Punjab National Bank, Bank of India, Bank of Baroda and Union Bank of India -- hiked their prime lending rates, which would affect some personal loans, corporate advances, credit to small-scale industries and agriculture loans above Rs two lakh. However, home and car loans would not be affected by the move.
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% in early February.
CRR will be hiked by 0.50% in two phases which will suck out close to Rs 14,000 crore from the system.