HDFC cuts down its RPLR by 20 bps
India's major housing finance provider, HDFC Limited, announced today that it has reduced the retail prime lending rate (RPLR) on housing and non-housing loans by 20 basis points net.
As of FY20 end, the bank had reported net return on loan of 10.18 per cent. In recent times, the housing loan rates saw a declining trend till they reached 8.5 per cent to 9 per cent. A further reduction of 20 basis points would bring these rates in tune to 7.5 per cent to 8.5 per cent. The bank offers loans at marginal cost of funds based lending rate (MCLR). These rates were also reduced by banks after RBI reduced the repo rate.
Few other names which witnessed reductions in MCLR were SBI, Canara Bank, HDFC Bank etc. SBI reduced its MCLR rates by 35 basis points. As per the database of RBI, the average MCLR rates of private as well as public sector banks have not seen even a single increase.
During the nationwide lockdown, the company did larger business activities such as loan serving and recovery via online mode. The company reported that 97 per cent of loans were repaid using electronic mode of transfer whereas 3 per cent borrowers were unable to pay during lockdown.
At 12.30 pm, the stock of the company was trading at Rs 1,750, down by 2 per cent on BSE.