HDFC chairman Deepak Parekh said on Tuesday that the interest rate would remain stable for the next three to four months as there is sufficient liquidity in the system.
“There is sufficient liquidity so far in the market. I don?t think it is going to harden that much at least in the next three to four months,” he said when asked if the large government borrowing programme will have an adverse impact on interest rates. “Government borrowing programme is over longer period of time and finance minister did say he will work with RBI and find a way to minimise the borrowing,” he said.
The government plans to borrow nearly Rs 4,00,000 crore from markets during 2009-10, a rise of about 50% over what it borrowed a year ago, to fund the widening fiscal deficit necessitated after stimulus doses for the economy.
On HDFC, which is the country?s largest private sector housing finance company, Parekh said that it expects up to 25% growth in home loan disbursal during the current fiscal. “We will grow at 20-25% in terms of home loan disbursal in FY?10,” Parekh told reporters on the sidelines of a function organised by Ficci.
The business has picked up significantly, he said, adding, “I will just say that May was better than April, June was better than May and July number so far has been very, very positive”. HDFC disbursed loans amounting to Rs 39,650 crore during 2008-09, up by 18%.