LIC Housing Finance to consider reducing home loan rates

30 Jan 2013 Evaluate

Barely hours after RBI lowered short-term interest rate by 0.25 percent, LIC Housing Finance, hinted at the possibility of reducing lending rates on home loans. At present, LIC Housing Finance's interest rate on home loans stands at 10.25% per annum while its Prime Lending Rate (PLR) is 14.4%.

To support an economy set for its slowest growth in a decade, Reserve  Bank of India (RBI), in ‘Third Quarter Review of Monetary Policy 2012-13’, went ahead and slashed  repo rate by 25 basis points to 7.75 per cent against 8 per cent earlier. What came as a pleasant surprise to the street, was the reduction in cash reserve ratio (CRR) of scheduled banks by 25 basis points from 4.25 per cent to 4.0 per cent of their net demand and time liabilities (NDTL) effective the fortnight beginning February 9, 2013, a move that would release around Rs 18,000 crore of primary liquidity into the banking system.

LIC holds 40.31% stake in LIC Housing Finance while, institutional investors, both foreign and domestic together, are holding 41.47% shares, others hold 18.22% share.

LIC Housing Finance Share Price

582.60 0.15 (0.03%)
23-Dec-2024 16:59 View Price Chart
Peers
Company Name CMP
LIC Housing Finance 582.60
Housing & Urban Dev. 236.85
Bajaj Housing Financ 125.60
Sammaan Capital 149.50
PNB Housing Finance 842.35
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