Country's premier home loan financier, Housing Development Finance
Corporation [Get
Quote<http://money.rediff.com/money/jsp/quote_process.jsp?query=housing
development finance corporation ltd>] on Tuesday slashed its lending rates
by 0.5 per cent effective.

With this reduction, HDFC's [Get
Quote<http://money.rediff.com/money/jsp/quote_process.jsp?query=hdfc
bank ltd>
] Retail Prime Lending Rate stands at 14 per cent. The lender has lowered
its RPLR by one per cent since December 2008.

"We are now seeing a reduction in the costs on a portfolio level and as in
the past HDFC has ensured that the reduction in cost is passed on to
existing customers by way of a reduction in RPLR," HDFC joint managing
director Renu Sud Karnad said.

The benefit of reduction in RPLR will accrue to all existing floating rate
customers over the period of next three months based on their respective
reset dates, HDFC said.

The home loan lender has seen its costs coming down owing to improved
operational efficiency and good quality portfolio, HDFC said.
"HDFC continues to efficiently manage its liabilities and reprice its debts.
In the current environment there is a time gap between the reduction in the
marginal cost of funds and the portfolio cost," HDFC said.

http://business.rediff.com/report/2009/mar/24/hdfc-cuts-lending-rate-by-zero-point-5-percent.htm

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