To raise rates for auto, other loans

Two days after RBI raised key policy rates, HDFC Bank has it would soon raise lending rates, a decision that would make EMIs higher for existing and new auto and other loan borrowers.

“There will be an increase in lending rate, both on retail and corporate side. Most retail products, including auto loans, will see an increase in the next few days,” Executive Director Paresh Sukthankar said. He, however, ruled out any further rise in deposit rates, saying the bank had increased it in the beginning of the month. From January 1, the bank had raised interest rates on retail-term deposits by up to 1.25 per cent across maturities.