HDFC, Indian Overseas Bank Hike Lending Rates

HDFC has increased its Retail Prime Lending Rate (RPLR) for housing loans.

New Delhi:

The country’s largest mortgage lender HDFC Ltd on Thursday announced a hike in its retail prime lending rate, while state-owned Indian Overseas Bank raised the repo-based lending rates.

This comes a day after RBI hiked the benchmark repo rate by 0.50 per cent to control inflation.

HDFC has increased its Retail Prime Lending Rate (RPLR) for housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 50 basis points, with effect from June 10, 2022, it said in a regulatory filing.

Indian Overseas Bank raised its repo linked lending rate by the same margin.

“We… inform that our bank has revised the RLLR (repo linked lending rate) to 7.75 per cent (i.e. 4.90 per cent 2.85 per cent = 7.75 per cent) with effect from 10th June 2022,” IOB said in a filing.

Earlier on Wednesday, three state-owned lenders Punjab National Bank, Indian Bank and Bank of India had announced raising their respective repo based lending rates by 0.50 per cent each.

The Reserve Bank has upped the repo rate — at which it lends short term money to banks — to 4.90 per cent as rising inflation has been a cause of concern amid geopolitical tensions.

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