HDFC raises lending rates, EMIs on home loans to go up
The revision would come into effect from Wednesday itself. The upward revision in rates will essentially lead to an increase in EMIs for borrowers. The hike in rates came close on the heels of central bank RBI's recent hike in repo rate by 40 basis points, besides giving indications it would raise rates further in the upcoming monetary policy review meets.
HDFC hikes home loan rates for existing customers effective May 9
It would lead to an identical hike in home loan rates for exiting customers. The hike will come into effect from May 9. It had recently increased its benchmark lending rate by 5 basis points This move comes at a time when the RBI hiked the policy rate and CRR to check prevailing high inflation and likelihood of further hike.
HDFC to sell 10% stake in HDFC Capital to ADIA's subsidiary
Accordingly, the housing loan major entered into binding agreements to sell 10 per cent of its fully diluted paid-up share capital of HDFC Capital to ADIA's subsidiary for approximately Rs 184 crore. Notably, ADIA is the primary investor in the alternative investment funds managed by HDFC Capital. Set up in 2016, HDFC Capital is the investment manager to 'HDFC Capital Affordable Real Estate Funds 1, 2 & 3'; and is aligned with the Government of India's goal to increase housing supply and support the Pradhan Mantri Awas Yojana - 'Housing for All' initiative.
Shares of HDFC twins on a downtrend since announcement of merger
The shares of the two HDFC companies declined 17 per cent and 18 per cent, respectively, since the news of the merger, data showed. Housing loan major Housing Development Finance Corporation (HDFC) on April 4 said its Board had approved the merger of its wholly-owned subsidiaries HDFC Investments and HDFC Holdings with HDFC Bank.
Propping Growth: Low macro lending rates to keep rupee under pressure
Accordingly, the low macro-lending rates have pushed bond yields higher and stroked further inflationary fears, thereby, hurting rupee's prospects. "Rupee is expected to weaken a bit further as the central bank (RBI) has chosen to support growth and kept rates unchanged," said Sajal Gupta, Head Fx & Rates at Edelweiss.
HDFC Bank's Q4FY22 net profit up 22.8% YoY
The bank's net profit increased to Rs 10,055.2 crore during the period under review over the quarter ended March 31, 2021. Besides, the bank's net interest income (income earned less interest expended) for the quarter under review grew by 10.2 per cent to Rs 18,872.7 crore from Rs 17,120.2 crore earned during the corresponding period of FY21.
HDFC entities merger can trigger spate of M&As in banking sector: Fitch
According to it, the merger between HDFC Bank and its shareholder HDFC may have long-term implications for the nation's banking and non-bank financial institution (NBFI) sectors. Besides, it said that the proposed merger could redefine the competitive landscape for banks, and increase the prominence of M&A among banks seeking to close the market-share gap with the merged HDFC Bank. "It could also influence the evolution of the NBFI sector, particularly for large entities that have nurtured banking ambitions amid tightening sector regulations," the agency said.
Fundamental drivers for IT sector growth remain intact: HDFC Securities
"The absolute return potential for the sector is likely to be moderate, basis growth reverting to medium-term baseline, lower growth dispersion in FY23E as compared to FY22E, and headwinds to multiple expansion based on increase in cost of capital and geopolitical risk premium, inflationary factors, and the lead-lag cycle of cost and pricing.
Shares of HDFC twins erase entire post-merger gains
In a major development on Monday, housing loan firm Housing Development Finance Corporation (HDFC) on Monday approved the merger of its wholly-owned subsidiaries HDFC Investments and HDFC Holdings with the HDFC Bank. On the same day, both the shares rose nearly 10 per cent each. From Tuesday to Thursday, they erased entire Monday's gains and reached the pre-merger levels.
Why HDFC merger is beneficial for macro economy, shareholders
The proposed transaction intends to create a large balance sheet and net-worth that would allow greater flow of credit into the economy. It will also enable underwriting of larger ticket loans, including infrastructure loans, an urgent need of the country. The merger is expected to enable seamless delivery of home loans and leverage on the large base of over 68 million customers of HDFC Bank and inter alia improve the pace of credit growth.