RBI hikes repo rates, HDFC Bank follows suit, increases lending rates by 20 basis points

Last Updated: Fri, Aug 03, 2018 16:25 hrs
FILE PHOTO -  The headquarters of India's HDFC bank is pictured in Mumbai

Housing Development and Finance Corporation Ltd. has said in a regulatory filing that the bank's lending rates will be hiked by 20 basis points. The development assumes significance since it comes a day after the central bank hiked benchmark repo-rates.

The RBI increased the short-term lending rate by 25 basis points to 6.50 percent on inflationary concerns, in its third bi-monthly monetary policy statement for 2018-19 .

In the filing to stock exchanges, the bank said, "HDFC has increased its retail prime lending rate, on which its adjustable rate home loans are benchmarked, by 20 basis points, with effect from Aug. 1, 2018."

Loans up to Rs 30 lakh, with the country’s largest mortgage lender, will be available at 8.70% while loans above Rs 30 lakh have been pegged at 8.8% for women borrowers.

Rates for other customers will have an addition of 5 basis points.

1 Basis Point = 1/100th of a percentage.

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