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Journalism of Courage
A day after finance minister P Chidambaram pitched for lower interest rates on home loans up to Rs 20 lakhs, private sector banking arm of housing lender HDFC today said it was not possible for now to further slash lending rates. But HDFC joint managing director Renu Sud Karnad reasoned for the private sector bank as not being in a position to cut interest rates by saying, “If you ask if there is any possibility of reducing the interest rate then I will say no right now… because in the month of March, the market becomes tight due to corporate tax payment.”
When asked if she saw any scope for reduction in interest rates, Karnad said: “I cannot say on this with certainty… but it is for sure that interest rate will not go up further.” Last month, HDFC lowered its prime lending rate by 0.25 per cent to 13.25 per cent. HDFC, having 0.92 per cent default rate, is looking at a growth of 25-30 per cent during next fiscal on the back of boom in housing construction activity in the country. “We will achieve 25-30 per cent growth in the coming fiscal in terms of loans disbursement,” she said. HDFC, which claims a 38-39 per cent share of the housing loan market, is certain of achieving loan advances of Rs 30,000 crore by this fiscal end, up by 25 per cent compared to last fiscal.
