In a pointer to the continued recovery in the home loan segment, the country’s largest mortgage lender, Housing Finance Development Corporation (HDFC), has seen a 30 per cent growth in loan approvals in the second quarter over the first quarter, Chairman Deepak Parekh said here today.

“We see a good growth in loan disbursals in the next few quarters. HDFC expects an overall 20-25 per cent growth in loan disbursals in 2010,” Parekh said on the sidelines of a private equity forum.

BSE  |  NSE Price

Also Read   Related Stories News Now - RBI may hike interest rates in Q4FY10: Parekh - Fixed-rate home loans are history - MFs' assets rise 0.93% in September - Protecting home buyers - The numeric ranking - Markets rebound on short-covering

Also Read   Related Stories News Now - Markets come off day highs - India to provide $500mn line of credit to Myanmar - IGC lowers world wheat output for 2012-13 to 671 mn tonne - Oil india Q4 net down 21% at Rs 445 cr - Synthetic rubber consumption up 2% in Feb, output falls More

According to Parekh, demand for home loans in the retail sector has increased significantly, especially for small and modest houses. However, demand for commercial real estate is still subdued and is unlikely to pick up on account of surplus capacity.

In recent weeks, a number of large mortgage financiers, including HDFC, ICICI Bank and State bank of India (SBI), have slashed home loan rates to tap the growing demand. Lenders expect the ongoing festive season to further boost home loan sales.

However, Parekh expressed concern over the rate of rise in housing prices in the past few weeks, hinting at the formation of a housing bubble. “Housing prices have been rising far too quickly. I think people are now becoming over-optimistic. Some developers feel they can now sell at whatever price they want,” he said.

Commenting on the spate of initial public offers that recently hit the county’s capital markets, Parekh said many of them were overpriced. “Promoters wanting to cash out on a rising market scenario is fine, but not at the cost of leaving nothing on the table for the investors.markets are looking a bit expensive at over 18 times forward earnings now, especially in comparison with other emerging countries,” he said.

When asked whether he saw interest rates rising, Parekh said that interest rates could rise marginally in the March quarter.

New Ipad Application :Business Standard's all new IPad App Click here to download for free Other Stories      - Markets come off day highs - India to provide $500mn line of credit to Myanmar - IGC lowers world wheat output for 2012-13 to 671 mn tonne - Oil india Q4 net down 21% at Rs 445 cr - Synthetic rubber consumption up 2% in Feb, output falls

Tags : HDFC | Deepak Parekh | second quarter result   Read Business news in  Advertisements -  Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol. -  Journey on, We are by Your Side. Click here to know more -  Help a Child Achieve her. Click to know more -  2 Lac Apartments, 1 Lac House / Plots. Click here -  Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol. -  Watch The Film Here. Click here to know more.. -  Leader in Passenger Car & Automobile Tyres. Click here -  1 billion in saving for Unilever without any tangles. -  Learn How One City is Running on FOOD SCRAPS. -  One Partnership Endless Possibilities. Click here to know more -  Helping doctors detect diseases earlier, saving costs & extending lives. -  36 Lakhs can get you a pool of Luxuries. Click here -  Which is the best plan for your daughter -  Check out the TRUE COLOURS of your Stocks, Now for FREE! -  One of the leading business schools in the world.Know More