Press release from Business Wire India
Source: Housing Development Finance Corporation Limited
Tuesday, March 24, 2009 05:45 PM IST (12:15 PM GMT)
Editors: General: Consumer interest; Business: Banking & financial services, Business services, Real estate, Retailers
Release no: 19548
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HDFC Reduces its Retail Prime Lending Rate
Retail Prime Lending Rate (RPLR) Reduced by 50 bps. Reduction to Benefit all Existing Customers
Mumbai, Maharashtra, India, Tuesday, March 24, 2009 -- (Business Wire India) -- HDFC, the premier housing finance company, today announced a reduction in its retail prime lending rates (RPLR) by 50 basis points, effective March 25, 2009.
This is the second time in 3 months that HDFC has reduced its RPLR. With this reduction the RPLR has been brought down by 100 bps since December 2008.
Speaking on this announcement, Ms. 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. HDFC continues to efficiently manage its liabilities and reprice its debts. In the current environment there is a time gap between the reduction in the marginal cost of funds and the portfolio cost. Marginal cost of borrowing had come down earlier this year and the same was passed on to our new customers through our special limited period offer (rates beginning at 9.5%), we are now seeing a reduction in the costs on a portfolio level and as in the past HDFC has ensured that the reduction in cost is passed on to existing customers by way of a reduction in RPLR."
"We have over the last few months seen that the measures taken by the Government, drop in interest rates, correction in property prices and developers introducing affordable housing by resizing the area has resulted in an increased interest from first time house buyers". she added.
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 existing 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.
Deposits:
HDFC has already reduced its deposit rates across maturities in the first week of March 09. On an incremental basis retail deposits for the first 9 months, April 08 to Dec 08, formed 55 % of HDFC's funding requirement.
Lending Operations:
HDFC Loan approvals during the Nine-month period ending December 31, 2008 amounted to Rs 33,820 crore as against Rs. 29,376 crore in the corresponding period last year, representing a growth of 15 %. Loan disbursements during the Nine-month period ending December 31, 2008 amounted to Rs. 27,211 crore as against Rs 22,285 crore during the same period in the previous year, representing an increase of 22 %. 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 Decemeber 31, 2008 aggregated to 1.01 % of the loan portfolio as against 1.12 % in the corresponding period of the previous year.
CONTACT DETAILS
Mahesh Shah, Housing Development Finance Corporation Limited, +91 (22) 66316410, maheshs@hdfcindia.com
Supriya Sonde, Housing Development Finance Corporation Limited, +91 (22) 66316461, supriyas@hdfc.com
KEYWORDS
CONSUMER, BANKING, BUSINESS SERVICES, REAL ESTATE, RETAIL, 500010.BO, HDFC.NS
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