HDFC and ICICI bank increase home loan rates
TimesofIndia: HDFC bank (NYSE: HDB) the second largest player in home loan segment has increased the home loan rates by 1 % and its now @ 9%. Along with HDFC bank, ICICI bank (NYSE: IBN) one of the largest home finance player has also increased the home loan rates to 9.50 %.
The rate increase was due to robust demand for housing and bullish outlook for infrastructure. The reality sector in India is still at a nascent stage and there is huge scope for growth. This can be seen from this simple data: The mortgage GDP ratio in USA for the year 2001 was at 54% in comparison to the mortgage to GDP ratio in India was at 2.5%.
HDFC and ICICI banks are the best bets to capitalize in India’s booming realty sector.