 "HDFC expects 50-bp rate cut in 2013")
Keki Mistry, vice-chairman and CEO of Housing Development Finance Corporation (HDFC), India’s largest mortgage lender, said there could be another 50 basis points (bps) cut in the policy rate or the repo rate by the Reserve Bank of India (RBI) in this calendar year.
He, however, doesn’t expect RBI to cut the interest rate in upcoming annual monetary policy review scheduled for May 3. RBI had reduced the policy rate by 25 bps each in two successive policy meetings, in January and March, but said the scope for further rate cut is limited as inflation continues to stay high.
Currently, the repo rate stands at 7.5 per cent and cash reserve ratio (CRR) at 4 per cent.
India’s largest lender, the State Bank of India (SBI), charges 9.95 per cent for loans below Rs 30 lakh and 10.1 per cent for loans above Rs 30 lakh.
Mistry also said that FY13 was much better for home loans than the preceding four financial years.
HDFC is still awaiting regulatory clearance for application to raise $500 million via external commercial borrowings (ECB), said Mistry. Last December, RBI had permitted housing finance companies to raise ECBs to affordable housing.
“We have made the application, but there has been no response so far,” he said. National Housing Bank (NHB) — the regulatory body for housing finance companies— recently said delay in receiving regulatory clearances may force NHB to seek an extension for housing finance companies to raise $1 billion debt via external commercial borrowings, originally scheduled for 2012-13.
He, however, doesn’t expect RBI to cut the interest rate in upcoming annual monetary policy review scheduled for May 3. RBI had reduced the policy rate by 25 bps each in two successive policy meetings, in January and March, but said the scope for further rate cut is limited as inflation continues to stay high.
Currently, the repo rate stands at 7.5 per cent and cash reserve ratio (CRR) at 4 per cent.
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HDFC had reduced its home loan rates by 10 bps in February. On further rate cuts, Mistry said HDFC will cut rate as and when cost of funds come down further. HDFC’s current home loan rates stand at 10.15 per cent for loans up to Rs 30 lakh and 10.4 per cent for loans above Rs 30 lakh.
India’s largest lender, the State Bank of India (SBI), charges 9.95 per cent for loans below Rs 30 lakh and 10.1 per cent for loans above Rs 30 lakh.
Mistry also said that FY13 was much better for home loans than the preceding four financial years.
HDFC is still awaiting regulatory clearance for application to raise $500 million via external commercial borrowings (ECB), said Mistry. Last December, RBI had permitted housing finance companies to raise ECBs to affordable housing.
“We have made the application, but there has been no response so far,” he said. National Housing Bank (NHB) — the regulatory body for housing finance companies— recently said delay in receiving regulatory clearances may force NHB to seek an extension for housing finance companies to raise $1 billion debt via external commercial borrowings, originally scheduled for 2012-13.