Business
HDFC will raise home loan rates by 0.5 per cent by February end or early March, Chairman Deepak Parekh said here on Thursday.
Updated : Sep 14, 2017, 04:10 PM IST
"After the CRR hike, our margins, presently at around two per cent, are under pressure and we will raise the interest rate to maintain that spread," HDFC Chairman Deepak Parekh said.
This would be the second time within a month that HDFC would be raising home loan rates. Earlier this month, it raised the rates by 0.5 per cent after RBI announced a 0.25 per cent hike in overnight lending rate, Repo, in its monetary review. ICICI Bank had also raised home and car loans by one per cent then.
Four PSU banks -- PNB, Bank of India, Bank of Baroda and Union Bank of
These banks revised the PLR since RBI announced that banks would have to keep more money as cash with the central bank. The move, technically called raising of cash reserve ratio, was made to tame inflation which touched more than a two-year high of 6.73 per cent in early February.
CRR will be hiked by 0.50 per cent in two phases which will suck out close to Rs 14,000 crore from the system.