Mar 17, 2008

HDFC not to cut rates for now

A DAY after finance minister P Chidambaram pitched for lower interest rates on home loans up to Rs 20 lakh, private sector housing lender HDFC on Friday said it was not possible for now to further slash lending rates. "If you ask if there is any possibility of reducing the interest rate then I will say not right now... because in the month of March, the market becomes tight due to corporate tax payment," HDFC joint managing director Renu Sud Karnad told reporters here. When asked if she saw any scope for reduction in interest rates, Ms Karnad said: "I cannot say on this with certainty... but it is for sure that interest rate will not go up further." Last month, DFC lowered its prime lending rate by 0.25% to 13.25%. HDFC, having 0.92% default rate, is looking at growth of 25-30% during the next fiscal on the back of a boom in housing construction activity in the country. "We will achieve 25-30% growth in the coming fiscal in terms of loans disbursement," she said.