BWI: HDFC Drops Interest Rates for Existing and New Customers

Press release from Business Wire India
Source: Housing Development Finance Corporation Limited
Friday, December 19, 2008 06:36 PM IST (01:06 PM GMT)
Editors: General: Consumer interest; Business: Banking & financial services, Business services, Construction, Financial Analyst, Real estate
Release no: 18787
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HDFC Drops Interest Rates for Existing and New Customers


Mumbai, Maharashtra, India, Friday, December 19, 2008 -- (Business Wire India) --
-- Retail Prime Lending Rate (RPLR) reduced by 50 bps

-- Interest on Floating rate Home Loans up to 20 lacs dropped to 10.25%

-- Interest on Floating rate Home Loans above 20 lacs dropped to 11.25 %

-- Interest Rates on Deposits dropped by 50 bps across all maturities

HDFC, the premier housing finance company, today announced a reduction in its retail prime lending rates (RPLR) by 50 basis points, effective December 22, 2008.

Speaking on this announcement, Mrs. Renu Sud Karnad, Joint Managing Director, HDFC Ltd. said, "We have been able to bring down our costs due to improved operational efficiency and good quality portfolio. As in the past, HDFC has ensured that reduction in the cost of its resources translates into a benefit in terms of lower costs for both existing and new customers. HDFC continues to efficiently manage its liabilities and reprice its debts.

The advantage of a cut in RPLR will accrue to all the existing floating rate customers over the period of next three months based on their respective reset dates.

Similarly the rates of interest on loans to NRI's have also been reduced.

The recent cuts in policy rates by RBI has created adequate liquidity in the banking system which had a positive impact on the cost of funds. The Corporation has always maintained a pre-determined spread, and believes in passing on the benefits to the end users. Further the sharp fall in inflation is an indication that the Interest rates are likely to have a downward bias.

Deposits :

HDFC will also reduce its deposit rates by 50 bps across all maturities effective 23rd December, 2008. On an incremental basis retail deposits for the first seven months, april to oct' 08, formed 62% of HDFC's funding requirement.

HDFC Loan approvals during the Six-month period ending September 30, 2008 amounted to Rs.24,180 crore as against Rs.18,948 crore in the corresponding period last year, representing a growth of 28 %. Loan disbursements during the Six-month period ending September 30, 2008 amounted to Rs. 17,788 crore as against Rs. 14,275 crore during the same period in the previous year, representing an increase of 25 %. HDFC's recovery performance continues to be very good. The gross non-performing loans defined as loans where the instalments are outstanding for more than 90 days as at September 30, 2008 aggregated to 1.04% of the loan portfolio as against 1.16% in the corresponding period of the previous year. This has been the lowest level of non-performing loans seen in September for any year in the last decade.

With the large number of options and schemes to choose from, HDFC encourages prospective home buyers to visit any of its offices spread over 260 offices in India, international offices in Singapore, London ,Dubai and GCC countries. and meet its loans counsellors, who are trained to provide customised advice and guidance on properties in India, products, repayment options and also on other issues related with home buying.




CONTACT DETAILS
Mahesh Shah, Dy. GM - Communications, Housing Development Finance Corporation Limited, +91(022) 66316410 / + 91 9820414098, maheshs@hdfc.com

KEYWORDS
CONSUMER, BANKING, BUSINESS SERVICES, CONSTRUCTION, Financial Analyst, REAL ESTATE, 500010.BO, HDFC.NS

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