HDFC Netbanking is not ruminating lower rates on auto loans offering in the near future, a senior official said.
HDFC Netbanking is not considering a rate cut, although SBI has announced a reduction of up to 0.50% in its offer auto loan earlier this month, Vice President and Chief Executive for loans Ashok Khanna vehicle told PTI.
“Not right away,” he replied, when asked if HDFC Netbanking will also learn from SBI and keep step with a rate cut.
Khanna said his bank will lend up to Rs 1,500 crore on loans of vehicles per month, owning a share of 22% on the market.
While announcing the rate cut, the leaders of the SBI had said that the bank held a share of 19%.
The SBI move, which also included a reduction in home loan rates, was invited by the twin movements by the RBI over the last two months, in which he announced a surge in export credits to refinancing to 50% and a reduction in law% liquidity ratio (SLR).
Upon request for reasons not to follow suit, Khanna was referring to the size of the SBI, which gives the country’s largest lender the freedom to cut rates.
When asked about the segment’s growth for HDFC Netbanking, said Khanna auto loans has grown from 10 to 15% for the bank on an annual basis and stressed that growth this year is satisfactory.
Khanna said HDFC Netbanking usually requires nothing from 11 to 13 percent for new cars while for used vehicles, where he prepared to Rs 300 crore per month, interest rates rise to 16 percent.
SBI rate for auto loans across tenures rises to 10.75%, the revised position.
Khanna said margins were detached from its highs for the Bank in HDFC car segment, car loans, which have fallen due to the general sluggishness of the economy.
“Not as good as they used to, but not bad. You control the quality of your business, you will not regret,” he said when asked about the scenario margins.
According to an article in Business Standard