HDFC Bank localises its website in 6 Indian languages
To help home loan customers, private sector lender HDFC Bank has localised its website in 6 Indian languages, besides English. The website content will now be available in Tamil, Telegu, Marathi, Hindi, Kannada, and Malayalam. With this, the housing finance major becomes the only corporate in the financial segment to provide website content in six Indian languages despite English being the language that is widely used on digital platforms. The Managing Director of HDFC Limited was quoted saying, ‘The growing use of internet and smartphones and rising base of regional language users, particularly in smaller towns, has made it important to focus on building digital properties and content where relevant information is available in local language as well.’ The initiative is in line with the government’s Digital India initiative. The bank was recently awarded the ‘Best Performing Lending Institution’ in the Economically Weaker Section (EWS) and Lower Income Group (LIG) category by the Prime Minister Narendra Modi, in June 2018.
22 October 2019
Home loan interest rates cut by HDFC
With effect from 15 October 2019, home loan interest rates were reduced by 10 basis points by mortgage financer Housing Development Finance Corporation (HDFC). The new interest rates for salaried customers will range between 8.25% and 8.65%. The move will benefit all HDFC customers.
Salaried individuals make up 90% of HDFC’s customers. Various commercial banks reduced the interest rates last week as well after the Reserve Bank of India (RBI) reduced the repo rate by 25 basis points. The repo rate was reduced to 5.15% earlier this month. Following a directive from RBI to banks to link their lending rates to an external benchmark, most commercial banks have linked their floating rates loans such as auto loans, home loans, and loans to MSMEs to the repo rate. The new rates came into effect from earlier this month. Due to the linking of lending rates, customers have seen a reduction in home loan interest rates. State Bank of India, India’s largest lender, offers home loan interest rates that range between 8.2% and 8.55% for salaried employees.
15 October 2019
HDFC lowers lending rates by 10 basis points
On Monday, HDFC bank announced that it has lowered the floating rates by 10 basis points. With the reduction in the rates, the lending rate for salaried borrowers has come down to 8.25% on the lowest bracket and 8.65% on the upper bracket. The reduction in the rates by the lender meant that it joined a growing list of banks that has revised the loan prices recently. It needs to be mentioned here that the prices cut in the lending rate comes after Reserve Bank of India reduced the repo rate by a cumulative 1.35% since February this year.
14 October 2019
Property fund management arm of HDFC looks at raising 1 billion dollars in affordable housing fund
HDFC Capital Advisors, the property fund management firm of HDFC Bank, intends to raise 1 billion dollars in its third affordable housing fund as per familiar sources. The company had earlier raised a similar amount for its affordable housing fund. The Abu Dhabi Investment Authority (ADIA) may put fresh money into the housing fund, along with India’s National Investment and Infrastructure Fund (NIIF). The NIIF had previously invested Rs.660 crore in October 2018, during the second affordable housing fund of HDFC Capital Advisors, headed by Vipul Roongta. 82% of the stakes in the fund is being held by ADIA, 9% by HDFC, and 9% by NIIF.
30 September 2019
HDFC Cuts Home Loan Rates, Women to Benefit Most
After State Bank of India (SBI) cut their interest rates following the RBI cutting the repo rate, HDFC Bank also revised their home loan interest rates downwards. The bank announced the new rates would be effective from 14 August, 2019.
After the revision, home loans would start at 8.40%, with salaried women benefitting the most from the rate cuts. Salaried women applying for a loan up to Rs.30 lakh will have to pay between 8.40%-8.90% towards interest. Non-salaried women meanwhile will be offered marginally higher rates at 8.55%-9.05%.
For loan amount above Rs.75 lakh, the bank will be charging 8.80%-9.30% for salaried women, which rises to 8.95%-9.45% in the case of non-salaried women.
Loan applicants from other categories will have to pay between 8.90% and 9.55% as interest.
30 August 2019
Salaried women to get cheaper EMIs as HDFC home loan rates are revised
HDFC Bank has followed State Bank of India (SBI) in cutting the Marginal Cost of Funds based Lending Rate (MCLR) as per the cut in Reserve Bank of India’s (RBI’s) repo rate. The home loan interest rates of HDFC Bank have been revised and will be effective from 14 August 2019.
The home loan Equated Monthly Instalments (EMIs) have become much cheaper with the new interest rates. The lowest rate of interest offered by HDFC Bank would start at 8.40%. The new interest rate is only 5 basis points more than SBI, which has home loan interest rates starting from 8.35%. In case salaried women wish to avail a home loan of up to Rs.30 lakh, the rate of interest would range from 8.40% to 8.90%. In the case of non-salaried women, the rate of interest would be between 8.55% and 9.05%. Non-salaried men and salaried men can avail home loans with interest rates ranging from 8.60% to 9.15% and 8.45% to 8.95%, respectively. In case of home loans ranging from Rs.30 lakh to Rs.75 lakh, the rate of interests for salaried women and non-salaried women would between 8.75% to 9.25% and 8.90% to 9.40%, respectively. In case the loan amount that is being availed is more than Rs.75 lakh, salaried women and non-salaried women can enjoy interest rates between 8.80% to 9.30% and 8.95% to 9.45%, respectively.
28 August 2019
HDFC Bank reduces its retail prime lending rate
HDFC Bank, one of the lenders operating in the country has reduced its retail prime lending rate (RPLR) by 10 basis points. Effective August 1, the RPLR rate will be 16.75%. Given the cut, the interest rates across all slabs for floating rate loans will come down by 0.10%.
The bank will charge interest of 8.60% for loans up to Rs.30 lakh from August 1 while for loans above Rs.30 lakh but below Rs.75 lakh the interest charged would be 8.85%. Any loan above Rs.75 lakh will be available at 8.90%. Women borrowers will be offered extra discount of 5 basis points across all tenures. It needs to be mentioned here that the reduction in rates will ease the EMIs by Rs.7 per lakh.
Last month, the country’s largest lender namely State Bank of India (SBI) had cut the MCLR on benchmark one-year loan tenure by 5 basis points. Bank of Baroda had also cut its rates by 10 basis points.
1 August 2019
HDFC Ties-up with IMGC for Mortgage Guarantee-Backed Home Loan
Housing Development Financial Corporation (HDFC) announced that it has tied-up with India Mortgage Guarantee Corporation (IMGC) for a mortgage guarantee-backed home loan. Mortgage guarantee, a financial product, compensates lending institutions for losses that may occur of a home owner defaults on a mortgage loan. Through this, the risk of the housing finance moves from banks or financial institutions to the mortgage guarantee company. With this tie-up, HDFC will look to further penetrate the home loan market and access a bigger customer base. Through this partnership, it will help HDFC offer more loan to customers looking to avail a housing finance on an enhanced eligibility and it’ll enable customers to avail loans beyond their retirement period. The lender said that the finer details of the loan is being worked out and will be known to the market soon. The bank, in a statement, said that mortgage-guarantee is a popular financial product in the global market and this tie-up will help HDFC diversify their offerings to a bigger segment of customers. Additionally, it’ll help them support the Government of India’s mission under the Prime Minister’s Pradhan Mantri Awas Yojana scheme to provide housing for all by 2022. The tie-up's aim is to address middle age salaried customers, young salaried as well as self-employed customers, and a wide range of un-serviced customers.
The bank also said that their product in the Indian housing finance sector has been accepted greatly and they see stepped-up interest in utilising mortgage guarantee as an effective risk mitigant across the lending segments. Mortgage guarantee or mortgage insurance is quite popular in some of the the international markets such as Australia, the US, and Canada with market penetration of 22% in Canada and 15% in the US. As for India, the mortgage guarantee is on the incline with market penetration of about 5 to 20% across lenders who are leveraging the financial product to increase their books.
16 May 2019
22.6% rise reported in net profit by HDFC Ltd. in Q4
HDFC Ltd., one of the private lenders in the country has reported a 22.6% increase in its profit and net interest income in Q4 of FY19. The private lender’s net profit stood at Rs.5,885.1 crore on the back of strong asset pricing.
The bank stated that the net interest income (NII) increased by 22.8% year-on-year to Rs.13,090 crore. The lender’s gross Non-performing asset (NPA) stood at Rs.11,224 crore while the Net NPA was reported to be Rs.3,214 crore.
It is noteworthy to mention here that the increase in the NII was accounted to robust loan growth in addition to healthy asset pricing.
23 April 2019
HDFC issues warning about using AnyDesk App
The Reserve Bank of India has already issued a warning against using the phone application called AnyDesk. HDFC Ltd. too has issued the same warning to all its customers. The bank has sent out text messages to its customers and asked them not to entertain any calls or messages that ask them to download the AnyDesk application on their mobile devices. As per the warning, fraudsters can access a customer’s account if they get the 9-digit code that appears after getting the AnyDesk app.
HDFC has also requested its customers to avoid sharing of any information like PIN, OTP, etc. with anyone. Any suspicious phone call asking a customer to download the AnyDesk app or share specific account related information must be reported to HDFC at the earliest.
27 March 2019
Want complete cyber security? Follow these 8 guidelines
Of late, the number of instances where customers have been cheated while carrying out transactions using internet banking, phone banking or on the ATM has increased considerably. The reason for it could be the slackening of security when it comes to the banking facility.
With the number of online transactions on the rise, banks and fintech companies have made it a point to aware customers with regard to the various possibilities through which they can be defrauded. In continuation with that, HDFC Ltd., one of the top private sector banks in the country recently issued eight guidelines through which individuals can ensure more safety for themselves from fraudsters.
The eight guidelines issued by the bank are listed below:
- Avoid carrying out any ‘Collect Request’ transaction from an unknown caller on the UPI app.
- Do not rely on customer service numbers found through search engines.
- Never ever share sensitive information on a call.
- Always enable the app-lock feature on the payment and mobile banking apps.
- Refrain from sharing or storing banking passwords on the mobile.
- Avoid installing ‘AnyDesk’ or any similar apps on the mobile.
- Disconnect suspicious fraudulent calls immediately.
- Do not forward any SMS by unknown senders.
21 March 2019
Investors vote HDFC Ltd. as the best managed company in India
HDFC Ltd., one of the leading home lenders in the country, has reportedly been voted the ‘Best Managed Company’ in India. The bank also announced that Aditya Puri, CEO of HDFC Ltd., was also voted the best CEO in the same poll. The poll was organised by one of the leading global financial magazines which witnessed over 240 portfolio managers and financial analyst around the world put in their votes for the best banks in different categories. Following HDFC Ltd. which was voted the best managed company in the country, the next in line was Tata Consultancy Services followed by Hindustan Unilever. Similarly, HDFC Ltd. also topped the polls in the best growth strategy category. Following HDFC Ltd. were Titan and Bajaj Finance who were ranked second and third respectively. However, the dropped behind TCS and was ranked third in the ‘Environmental and Social Governance’ (ESG) category. According to the press release, the bank also finished third in the investor relations category following TCS and Infosys who finished ahead of HDFC Ltd.
15 March 2019
HDFC stock expected to yield 14% rate of return
Despite charging greater interest than any of its competitors in the home loan services section, the stock of Housing Development Finance Corporation (HDFC) has emerged as the one to be bought in the share market. The rate of interest charged by HDFC Ltd. is 9% which has been found to be higher by 65 basis points than its competitor as per a research done by Kotak Institutional Equities. The research also established that the difference between the home loan rates and 10-year AAA stands at 163 basis points.
As per the experts at Kotak Institutional equities, the only drawback for HDFC is its large size. As per Kotak, the outstanding loans of HDFC have increased by 4% to 1.9 trillion in December 2018. It was recorded at 1.82 trillion in December 2017. As per the analysts at Kotak, HDFC has the highest CAR and the lowest leverage. As per the advice of the analysts of Kotak, HDFC is set to make its investors rich by giving a 14% return rate.
11 March 2019
HDFC Q3 Net Profit falls 60% YoY to Rs.2,114 crore
HDFC Ltd. reported a 60% decline in net profit at Rs.2,114 crore for Q3 ended December 2018 as against a net profit of Rs.5,300 crore in the same quarter of the last financial year. HDFC's total income increased to Rs.10,569 crore during the December quarter against Rs.8,824 crore in the year-ago period. The gross non-performing assets stood at 1.22% of the total assets at the end of quarter. The company’s profit after tax (PAT) before other comprehensive income stood at Rs.6,771 crore, as against Rs.8,703 crore in the corresponding period of the previous year. HDFC recorded a 18% growth in the net interest income which stood at Rs.2,871 crore, as against Rs.2,442 crore in the corresponding quarter of the previous year. Meanwhile, the company’s capital adequacy ratio stood at 18.9%, of which Tier I capital was 17.2% and Tier II capital was 1.7%.
As per the regulatory norms, the minimum requirement for the capital adequacy ratio and Tier I capital is 12% and 6% respectively. The HDFC board approved the appointment of Ireena Vittal as an independent director of the company for a period of 5 years with effect from 30 January 2019. HDFC sold individual loans amounting to Rs 6,959 crore. Total individual loans sold during the preceding 12 months was Rs 22,732 crore as against Rs 12,078 crore in the corresponding period of the previous year. On an assets under management (AUM) basis, the growth in the individual loan book was 17 per cent and the non-individual loan book grew by 9 per cent. The growth in the total loan book was 15 per cent. As at December 31, 2018, individual loans comprise 74 per cent of the AUM.
30 January 2019