Will cut rates for existing borrowers only if costs fall: HDFC
Mumbai: After cutting lending rates for new customers, mortgage lender HDFC has said it may reduce the rates for existing customers if its cost of borrowing comes down. “Currently, we are seeing that old rates have not changed. We need to understand that whilst the Governor has not increased rates in this policy, he has hinted that the possibility of looking at rates at short notice,” company’s vice chairman and chief executive Keki Mistry told reporters on the sidelines of an event. “Therefore, we need to have a more detailed approach or greater confidence that rates are not going to suddenly spike up and that’s why we had just changed the rates for new customers. As and when cost of existing borrowing comes down, we will certainly pass on the benefit back to customers.” HDFC has reduced the lending rates by 0.25 per cent for a limited period after State Bank of India cut rates. The new rates for HDFC home loans of up to Rs 75 lakh will be 10.25 per cent as against the existing 10.50 per cent.
RBI tightens norms for credit card issuers on minimum dues
Mumbai: Tightening norms for credit card issuers, RBI has asked banks to treat outstandings as bad loans in case customers fail to pay the minimum due amount within a stipulated 90 period. With a view to bringing consistency and inducing transparency, the RBI said, “it is advised that a credit card account will be treated as non-performing asset if the minimum amount due, as mentioned in the statement, is not paid fully within 90 days from the next statement date”. In credit card accounts, the amount spent is billed to the card users through a monthly statement with a definite due date for repayment. Banks give an option to the card users to pay either the full amount or a fraction of it or minimum amount due on the due date and roll-over the balance to the subsequent month’s billing cycle. The Reserve Bank said it has come to its notice that
there are divergent practices being followed by banks with
regard to asset classification status of credit card accounts
if the minimum amount is not paid on the due date.
Formation of SRO will increase reach of MF products: Rajiv Bajaj
Mumbai: Formation of Self-Regulatory Organisation (SRO) for the mutual fund industry will help increase