Indian Banking firms to raise Interest Rates again
India’s largest housing finance company HDFC has outcome with 20% rise in profits for the year 2011 and also the profits gained were higher which even crossed the market expectations and reason behind this act was the stake revenue coming at the earliest from HDFC. Mayur Shetty, Keki Mistry the vice chairman and CEO of HDFC banking services reported in concern with the rise in interest rates saying that, HDFC is expected to raise interest rates by the end of year 2011 only reason being a major drop down in inflation, this will bear a major impact on fund costs.
Also they would be lending the interest rates in co-relation with the manageable cost funds. However, there will not be any trace increase in lending rates in a drastic way. Reserve Bank of India (RBI) had long back increased the rates by 25 bps and the HDFC bank never supported the same as the limitations and margins have seen a drastic downfall to 2.29% in a span of a year.
Cost funds, HDFC, HDFC banking services, Housing finance company, Inflation, Lending rates, Market rates, Reserve Bank of India
