HDFC launches 'green and sustainable' deposits programme for retail clients

The country’s largest mortgage lender, HDFC Ltd, on Monday launched a “green and sustainable” deposits programme for retail clients, funds from which will be used to finance sustainable housing credit solutions and services.
 
In a statement, HDFC Ltd said individuals can earn interest at 6.55 per cent on their deposits, whose period can range from 3-10 years. Also, senior citizens will be eligible for an additional 0.25 per cent per annum on their deposits of up to Rs 2 crore. Further, an addi­tional interest rate of 0.1 per cent per annum will be applicable on these deposits up to Rs 50 lakh if the deposits are made through the company’s online platform.

 
Typically, HDFC Ltd offers 6.65 per cent interest rates on normal deposits. So, people who want to opt for “green and sustainable” deposits will get 10 basis points lower in terms of return on deposits, which translates to Rs 100 on a deposit of Rs 1 lakh.
 

Renu Karnad, managing director, HDFC Ltd, said, “Tho­ugh we do not have a target in mind, even if we raise a fraction of what we have been raising by way of our regular retail deposits, it can translate into a reasonable amount”.  “The larger purpose is to provide another product to environmentally conscious customers who also want to contribute towards a better environment and are looking for a dependable platform that can help them contribute to this cause at a very nominal cost and minimum effort,” she added.

 
According to Bankbazaar. com, among NBFCs, Shriram City Union Finance offers one of the highest interest rates on fixed deposits of 7.25-9.73 per cent for tenure ranging from 1-5 years for deposits less than Rs 2 crore, followed by PNB Hou­sing Finance (5.9-6.7 per cent), and ICICI Home Finance (5.7-6.7 per cent).
 
Deepak Parekh, chairman, HDFC Ltd, said the company anticipated growing demand for green solutions and has hence launched a green and sustainable deposits offering for customers, so that they can grow their wealth while contributing to serve the needs of a changing world.
 
Prior to HDFC Ltd, HSBC India had launched a green deposit programme for corporate clients. The bank had said it will use the funds from this programme for financing gre­en initiatives such as renewable energy, clean transportation, pollution prevention and control, green building, sustainable water, wastewater management, and others.

 
Recently, the company received a loan of $250 million from International Finance Corporation (IFC), the investment arm of the World Bank Group, which will be used to boost green affordable housing finance in India. Low and middle-income borrowers will have better access to funds for affordable housing as a result of this funding from IFC as at least 25 per cent of the funding has been earmarked for green affordable housing, the company had said.