Business Daily from THE HINDU group of publications
Saturday, Sep 22, 2007
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Business Daily from THE HINDU group of publications Saturday, Sep 22, 2007 ePaper |
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Housing Finance Money & Banking - Interest Rates
Our Bureau Mumbai, Sept. 21 Housing Development Finance Corporation Ltd is expected to slash interest rates on home loans next week. Ms Renu Karnad, Executive Director, HDFC, said that the housing finance major had seen a 50 basis point reduction in its cost of funds, against last month. HDFC’s Prime Lending Rate is currently at 14 per cent. Its cost of funds had inched up to 8.75 per cent in the first quarter of 2007, against 6.9 per cent in the year-ago period. The disbursements were up 29 per cent in the first quarter at Rs 5,645 crore. Mr Deepak Parekh, Chairman, said that home loan growth would be 26-27 per cent in the second quarter and they expected it to be around 20-25 per cent in 2007-08. Mr Parekh was speaking on the sidelines of a function organised by the Bombay Chamber of Commerce and Industry here today. He said that the property prices have softened and there has been a slowdown in property sales. “The investors have gone out,” he added. Talking about the joint venture for its general insurance he said they would finalise a foreign partner for the joint venture in 15 days. Among other banks, Bank of Baroda and IDBI have recently cut their interest rates on home loans. Asked about a rate cut by the Reserve Bank of India in the light of moderating inflation rate, Parekh said though there was a case for cutting rates, one had to be cautious of the money supply in the system. More Stories on : Housing Finance | Interest Rates | Housing Development Finance Corporation Ltd
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