Signage for Housing Development Finance Corp. (Photographer: Vivek Prakash/Bloomberg)

HDFC Raises Retail Lending Rate By 10 Basis Points

Mortgage lender Housing Development Finance Corporation Ltd. has increased its retail prime lending rate by 10 basis points with immediate effect, ahead of the Reserve Bank’s monetary policy announcement on Friday.

The new rates vary from 8.8 to 9.05 percent on various slabs of loans, according to an exchange filing.

On Saturday, state-run Punjab National Bank Ltd. had also increased its benchmark lending rates or MCLR for short-term loans by up to 0.2 percent, effective Monday. With the revision, PNB’s overnight marginal cost of funds based lending rate now stands at 8.2 percent as against 7.9 percent.

In its monetary policy review on Oct. 5, the RBI is expected to raise repo rate by 25 basis points. An increase in the repo rate will be driven mainly by concerns over inflation and a weak rupee.