HDFC Mutual Fund in April

NEW DELHI, FEB 25: Housing Development Finance Corporation Ltd will open its mutual fund schemes in April even as it has no plan for raisi...

NEW DELHI, FEB 25: Housing Development Finance Corporation Ltd will open its mutual fund schemes in April even as it has no plan for raising fresh capital either from the domestic or the international market.

Parikh said since both HDFC Bank and HDFC have enough capital needed for expansion, the group would not go in for fresh issue. For the time being, the group would pursue its entry into the insurance sector along with Standard Life Assurance of UK. quot;We will apply for a licence for the life insurance in the next few months. We want to enter the life insurance since this sector has a lot of synergies with the housing,quot; he said.

As a simplification measure, HDFC would also be changing its interest rate structure. Instead of offering different interest slabs, the corporation would offer loans at a single rate. Besides, the corporation is also giving an option to borrowers to go in for floating interest rates.

HDFC Banh has enough capital at hand since both Chase Manhattan and HDFC had contributed additional equity through preferential issue recently. Clocking in an average growth rate of 30 per cent in the first ten months of the current financial year against 25 per cent last year, HDFC has seen higher growth in the retail segment.

However, the demand for loan from corporate building houses for their employees has declined. quot;We have reduced our exposure to builders as well,quot; Parikh said. HDFC chief is expecting certain concessions in the budget for the housing sector. quot;Certain anomalies in the Income Tax Act need to be removed,quot; he said. Corporation executive director Renu Karnad said HDFC is now giving loans on general power of attorney in Delhi. quot;However, we tell our borrowers to get the title changed to freehold from Delhi Development Authority and we provide them help,quot; she said. HDFC along with others would be participating in a pilot securitisation of loan to the extent of Rs 100 crore. Others include National Housing Bank, LIC Housing, HUDCO and Dewan Housing.