• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Mumbai , Oct 25

OPINIONS from the housing finance sector were mixed on whether the credit policy might see a rise in housing finance rates.

"The lending rate should see a rise," said Mr S.K. Mitter, CEO, LIC Housing Finance Ltd. "Although in our case, the bulk of our portfolio consists of floating rate loans, so it should not impact us much."

According to him, interest rates for housing finance could rise by 25-30 basis points.

Mr Kapil Wadhavan, who heads Dewan Housing Finance Ltd, said that the credit policy was unlikely to impact the housing finance sector. "The bank rate as well as the cash reserve ratio have been left untouched."'

Although there has been an increase in the reverse repo rate, this has already been discounted by the market, he added.

However, he said, one could expect closer monitoring of the real estate lending market by the Reserve Bank of India.

Mr Mitter said that this warning from the RBI about the rising shares of housing and real estate warranting precautionary policy action could pertain more to banks rather than to pure housing finance companies.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Mid-Year Review of the Annual Credit Policy — Managing inflation, encouraging growth

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line