HDFC Bank, one of the largest lenders in the country increased the interest rates on its home loans by 20 bps (0.20 per cent). The move comes on the heels of the Reserve Bank of India hiking its repo rate by 0.25 per cent. Following the hike, the new repo rate is 6.5 per cent.
The prime lending rate of HDFC bank, following this hike, is now 16.65 per cent. This is the second rate hike by HDFC this year, with the bank having hiked rates in June as well.
Following the latest rate hike, HDFC home loans under Rs.30 lakh will now attract an interest of 8.75 per cent for men and 8.70 per cent for women. The interest rate for loans above Rs.30 lakh is 8.85 per cent for men and 8.80 per cent for women.
Experts are of the opinion that other banks could follow suit, increasing their lending rates as well.
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HDFC Bank has had a good start to the financial year, with the net profit for Q1 being Rs.2,190 crore, with its net income during the period being Rs.2,890 crore.
Sources: Times of India, LiveMint