Hdfc Hikes Lending Rate By 5 Basis Points

However, there will be no change in interest rates for new customers as they will get an additional discount of 5 bps on the benchmark, negating the hike in RPLR. The new RPLR is at 16.1%, and loans on this benchmark are offered at a discount to customers, unlike a bank’s benchmark where loans are offered after adding a spread. New home loans from HDFC will be available in the range of 6.7%-7.15%, depending on the credit score of the borrower, along with the quantum of credit and gender. Like several other lenders, HDFC offers women borrowers a discount of 5 bps on some card rates.

As on 31 December, HDFC’s outstanding loans after sell-downs stood at ₹5.39 trillion, of which ₹4.08 trillion were to individuals.

Last month, India’s largest lender State Bank of India (SBI) raised loan rates for corporates and some retail borrowers by 10 basis points, setting the stage for a wave of rate hikes across the banking sector. The rate hike, the first from SBI in more than three years, indicated the turn in the interest rate cycle. Others like Axis Bank Ltd, Bank of Baroda Ltd, and Kotak Mahindra Bank Ltd have raised lending rates by 5 bps each in April.

The interest rate scenario in India and globally is changing as central banks tighten covid-era easy money policies to tame runaway prices. The monetary policy committee (MPC) of the Reserve Bank of India (RBI) said on 8 April it will now focus on the gradual withdrawal of accommodation.

“We expect a 25-bps rate hike each in June and August, with a cumulative rate hike of 75 bps in the cycle,” said Soumya Kanti Ghosh, group chief economic advisor, SBI, in a 13 April note.