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Softening Yields Unlikely To Impact Borrowing Costs, Says Repco Home Finance

Yields may rise if government hikes borrowings in the second half, says Repco Home Finance.

(Source: Bloomberg)
(Source: Bloomberg)

Borrowing costs for home finance companies will remain stable even as bond yields softened after government said it will borrow a lower amount via bonds in the first half of the new fiscal year.

“Yields have come down but we are not sure how sustainable it will be,” Yashpal Gupta, chief operating officer at Repco Home Finance told BloombergQuint in an interview. “If borrowings are hiked in the second half, yields may rise,” he said.

Weighted average cost of borrowing for the last quarter was 8.15 percent and with the softening of the 10-year yields, incremental costs will be lower than the previous quarter, he added.