HDFC hiked their base rate to 10%, this was a raise of 20 basis point and however across the sector this move is not likely, going to create the necessary impact for the hike of interest rates. Following the decision regarding the made by the Reserve Bank of India (RBI) regarding the infusion of extra liquidity, it is expected by most bankers that the interest rate will remain the same.
After the RBI on October 29 had decided that the benchmark of the rate had to increase by 25 basis point, HDFC was the first financial company to hike the rate of lending. As per experts, they believe that the bank is catching up with its competitors and is at par with ICICI bank with its base rate being 10%.
At the end of the quarter which ended September 30, the net interest margin (NIM) of HDFC had reduced to around 30 bps