HDFC hikes rates; sees no slack in demand

HDFC increased its prime lending rate (PLR) by 50 basis points on 1  January, but left pure fixed rates untouched at 11%.

The floating rate starts from 9.5% and goes to 10% depending on the loan amount. For loans above Rs 10 lakh, the rate applicable will be 9.5%, while for loans below Rs 10 lakh the rate will be 9.75 or 10%.

The direct loan outstanding portfolio, as on September 30, 2006, was Rs 49,887 crore. The investments in preferential debentures and corporate deposits for funding real estate project is Rs 1,445 crore. Therefore, the total loan portfolio is Rs 51,332 crore.

HDFC management highlighted that even as rates have been raised 150 bps YTD, mortgage demand remained strong, and the company is likely to sustain its 25% + loan growth rates.