HDFC may cut home loan rates, awaits RBI cue - Economic Times

MUMBAI:
The country’s biggest mortgage finance company, HDFC, may cut down lending
rates if the cardinal depository financial institution makes not fasten rates or vacation spot to a pecuniary squeeze
by hiking the hard cash modesty ratio (CRR). The company have already seen a decline
in adoption costs in July and is waiting to see whether the diminution in rates
will be sustained before reducing lending
rates. Although involvement rates
have gone up during the first one-fourth of 2006-07, liquidness generated by forex
inflows have helped convey down rates in the money markets. Towards July, interest
rates have got got eased and adoption costs have come up down for institutional borrowers. Some banks, which had hiked their loaning rates in the 4th one-fourth of last
year, said they would convey down place loan
rates. “We have got seen a
reduction in adoption costs in July. If the diminution in rates is sustained, we
may convey down loaning rates,” HDFC president Deepak Parekh said. He,
however, added that there was a possibility of a tramp in CRR by the Modesty Bank
of Republic Of India this month-end to absorb excess liquidity. If this happens, rates may
not come up down, he
said. HDFC’s net income are
expected to see significant top in the 2nd one-fourth on business relationship of
exceptional items. HDFC would derive close to Rs 311 crore from the sale of its
stake in Intelenet to Blackstone. In the 2nd quarter, HDFC will also finalise
a non-life partner to whom it will sell 74% interest in HDFC Chubb General
Insurance at a premium. The
second one-fourth would also see Rs 3,114 crore of working capital coming in following the
preferential allocation of equity shares to Thomas Carlyle Group through CMP Asia and
Citigroup Strategic Holdings Mauritius.