HDFC plans to raise $300 mn

Written By Unknown on Jumat, 10 Januari 2014 | 23.25

Jan 10, 2014, 07.47 PM IST

Last month, HDFC slashed interest rates by 0.25 percent on home loans. The new rates for HDFC home loans of up to Rs 75 lakh have come down to 10.25 percent, from 10.50 percent.

Tags  Housing Development Finance Corporation, Keki M Mistry, USD 1 billion ECB, Reserve Bank, cash reserve ratio (CRR), HDFC home loans

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HDFC plans to raise $300 mn

Last month, HDFC slashed interest rates by 0.25 percent on home loans. The new rates for HDFC home loans of up to Rs 75 lakh have come down to 10.25 percent, from 10.50 percent.

Like this story, share it with millions of investors on M3

HDFC plans to raise $300 mn

Last month, HDFC slashed interest rates by 0.25 percent on home loans. The new rates for HDFC home loans of up to Rs 75 lakh have come down to 10.25 percent, from 10.50 percent.

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Housing Finance firm  HDFC Ltd today said it plans to raise USD 300 million through external commercial borrowing (ECB) to fund its expansion. "About USD 300 million, we are going to raise but we have to wait for interest rate to stabilise," HDFC Vice Chairman and Chief Executive Officer Keki M Mistry told PTI.

Asked whether the raising of funds will happen this fiscal or the next one, he said it is not yet decided. HDFC is raising the money under the USD 1 billion ECB window for housing finance companies that the Reserve Bank allowed for funding affordable housing projects.

Also read: Govt clears ETF plan; to raise Rs 3,000 cr in FY14  

Last month, HDFC slashed interest rates by 0.25 percent on home loans. The new rates for HDFC home loans of up to Rs 75 lakh have come down to 10.25 percent, from 10.50 percent. In its monetary policy review last month, RBI kept the short-term lending rate unchanged at 7.75 percent, while the cash reserve ratio (CRR) remained at 4 percent.

Earlier, speaking at an ICAI event, Mistry said interest rate is likely to remain stable in the current quarter but may see some moderation in April-June quarter. "I don't see interest rate going down in the first quarter of this year as there is a huge demand for credit during the period due to various reason. It is usually busy season," he said.

Post April, RBI will have more options to bring down interest rate as credit off-take during that period will be low, he said.


HDFC stock price

On January 10, 2014, Housing Development Finance Corporation closed at Rs 800.00, down Rs 0.5, or 0.06 percent. The 52-week high of the share was Rs 931.00 and the 52-week low was Rs 632.20.


The company's trailing 12-month (TTM) EPS was at Rs 32.93 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 24.29. The latest book value of the company is Rs 160.35 per share. At current value, the price-to-book value of the company is 4.99.


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