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HDFC Ltd on Saturday said it will hike its Retail Prime Lending Rate (RPLR) by 25 basis points from 16.95 per cent to 17.20 per cent, with effect from Monday, the housing financier said in an exchange filing.
Floating rate home loans, also known as adjustable Rate Home Loans (ARHL), of India’s largest standalone housing finance company are benchmarked to RPLR. .Accordingly, rates on such loans are now expected to increase from the current minimum level of around 7.55 per cent.
Vice-Chairman and CEO Keki Mistry, in the company’s earnings call on Friday, had said that the lender has passed on the entire hike in repo rate to its customers.
The central bank cumulatively raised the repo rate by 90 bps over May-June, in an attempt to curtail the elevated inflationary pressures. Over the same period, HDFC too raised its RPLR by 90 bps via four hikes, the last of which was by 50 bps on June 9.
The additional 25 bps hike announced by HDFC comes days ahead of the RBI’s three-day, bi-monthly monetary policy meeting. In its monetary policy statement—scheduled to be released on Aug 5—the central bank is expected to raise the repo rate again, by up to 50 bps from the current level of 4.90 per cent.
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