HDFC hikes retail prime lending rate by up to 20 basis points to 16.35%

HDFC raised its retail prime lending rate (RPLR) by up to 20 basis points to 16.35 per cent on Monday. Home loan rates are calculated by reducing the spread from the RPLR.

HDFC’s revised home loan interest rates now range from 8.4 per cent to 8.7 per cent, where as State Bank of India’s home loan rates are between 8.35 per cent to 8.9 per cent and ICICI Bank’s range from 8.45 per cent to 10.2 per cent. 

Keki Mistry, vice-chairman and chief executive officer, HDFC, said the revision in interest rate reflects the rise is costs of funds.

HDFC’s standalone profit was Rs 56.7 billion, a major jump from Rs 17 billion in the previous year’s December quarter. The company’s loan book grew 19 per cent year-on-year to Rs 3.41 trillion in December 2017. 

“We always try to maintain our RPLR spread. When the cost of our funds go up, we have to increase lending rate and vice-versa”, said a senior executive. 

HDFC’s stock closed at Rs 1,835.1 on the National Stock Exchange, up 0.33 per cent from the previous day’s close.