India's HDFC raises home loan interest rate

·1-min read

MUMBAI (Reuters) - India's top housing finance firm HDFC Ltd said it would raise its retail prime lending rate on home loans by 30 basis points with effect from May 9, according to an exchange filing on Saturday.

Several lenders have increased lending and deposit rates after India's central bank in a surprise move on Wednesday raised its main lending rate off record lows to contain rising inflation.

The Reserve Bank of India raised the repo rate by 40 basis points to 4.40%, in its first change in the rate in two years and its first rate hike in nearly four years.

Last month, HDFC and HDFC Bank, the country's largest private-sector lender, floated merger plans to create a financial services behemoth to tap rising demand for credit.

(Reporting by Abhirup Roy; Editing by Michael Perry)

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