India's HDFC cuts home loan rates by 50 bps
MUMBAI, Dec 19 (Reuters) - India's Housing Development Finance Corp (HDFC.BO: Quote, Profile, Research) said on Friday it had cut its retail lending rates by 50 basis points, effective Dec. 22.
Rates on new home loans up to 2 million rupees ($42,370) will drop to 10.25 percent, while those on bigger loans will attract a rate of 11.25 percent, it said in a statement.
"We have been able to bring down our costs due to improved operational efficiency and good quality portfolio," Joint Managing Director Renu Sud Karnad said in the statement.
The reductions will apply to all existing floating rate customers over the next three months, the mortgage company said.
It was also reducing deposit rates by 50 basis points across all maturities, with effect from Dec. 23, it said.
High home financing costs have depressed demand for housing, leading several realty companies to shelve projects.
The Reserve Bank of India has cut its main lending rate by 250 basis points to 6.5 percent since October in an economy showing signs of slowing more than many had expected, and policy makers have urged lenders to pass on the reductions.
(Reporting by Janaki Krishnan; Editing by Charlotte Cooper)
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