Private sector lender HDFC Bank will set up over 250 new branches in next 2-3 months and is also looking to foray into the lucrative investment banking in India and abroad.

According to technical analysts, the Banking Major HDFC BANK is good for intraday trading. Traders can buy HDFC BANK with strict stop loss of Rs 1750 for the target of Rs 1822-1863.

At National Stock Exchange, the stock of HDFC BANK has achieved a 52-week high of Rs 1799 with a low of Rs 801.

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. HDFC BANK offers a range of commercial and transactional banking services, and treasury products to wholesale and retail customers. So be sure to compare home loan rates to make the best deal for your dream home.

An HDFC official broke the news to NewsWire18 on Monday which was confirmed by managing director, Keki Mistry to DNA Money when he said they would review lending rates this month end.

Leading private sector lender in home loans space, HDFC today reduced interest rate on floating loans by 0.50 per cent but left the fixed rate untouched at 13.25 per cent.

Accordingly, the revised rate stands at 10.50 per cent and will be applicable to loan disbursements on or before 31 October, an HDFC spokesperson said here today.

However, there is no revision in the fixed home loan rate which remains unchanged at 13.25 per cent. Commenting on this step, HDFC executive director Ms Renu Sud Karnad, said, "Our lending rates are a function of our cost of funds and we have seen a reduction in our cost of funds."

"Historically, we have maintained a pre-determined spread and have always believed in passing the benefits to the customers. This special offer is an extension of the same philosophy."

Compare home loan before deciding the low interest for your pockets.

Late last week, HDFC chairman Mr Deepak Parekh had hinted at a reduction in rates. "Our cost of funds have come down by around 50 basis points," he had said. Earlier, Bank of Baroda and IDBI Bank had also reduced their home loan rates.

The country's largest housing finance company, HDFC announced a special interest rate of 10.50% for customers availing home loans at floating rate of interest.

Indian shares fell for the fifth straight session on Friday, led by banking and financial stocks, in a short session held on Diwali, the Hindu festival of lights.

BPTP, one of the fastest growing players in real estate industry today signed an MOU with HDFC HOME LOANS. HDFC would be extending home loans on exclusive terms to investors in the Group Housing project at Sector 75, BPTP Parklands, the new age integrated township at Faridabad.

Housing Development Finance Corporation (HDFC) today said it does not plan to cut home loan rates as of now, a senior company official said.

Fitch Ratings Lanka has confirmed the AA - (lka) rating on HDFC Bank Series A mortgage backed securities, the rating agency said.

The rating relates to the timely payment of interest and the ultimate payment of principal on Series-A certificates issued by the Home Loan Securitisation Trust 2005 (HLST), a special purpose vehicle managed by Deutsche Bank A.G. (Colombo Branch), Fitch said in a statement.

The pass through securities are backed by a pool of housing loans that were originated by HDFC Bank which has been rated 'A(lka)' with a Stable outlook.

"The affirmation is based on the robust performance of the transaction to-date, the availability of credit enhancement to Series-A investors in the form of high over-collateralisation, excess interest spread (EIS), a liquidity reserve held at Citibank N.A - Colombo Branch, and the relatively strong credit quality of the underlying collateral," Fitch said.

Ever since Ben Bernanke cut both the Federal fund rates and discount rates by 50 basis points each, seeking to prevent a steep housing slump and turbulent financial markets from triggering a recession, speculation in the Indian markets have been rife with talks that the RBI might be looking to take the same step.

Indian home loan numbers have been slowing down and banks have begun to slash rates. So will the RBI also step in and bring down interest rates?

HDFC announced today that thay will cut new home loan rates on Tuesday by 50 basis points. However, they have not changed the benchmark rates (PLR). The new rates are applicable only to new borrowers - implying that old borrowers will continue to pay earlier rates. This rate cut is basically an extension of its current monsoon promotional offer with a better discount.

BPTP, one of the fastest growing players in real estate industry today signed an MOU with HDFC HOME LOANS. HDFC would be extending home loans on exclusive terms to investors in the Group Housing project at Sector 75, BPTP Parklands, the new age integrated township at Faridabad.

The unique feature of the loan is that it would be disbursed on a special interest rate with 24 months interest-free period. HDFC would grant loan to the extent of 90% of the apartment cost to the purchaser.

The first Equal Monthly Installment (EMI) would be payable only after two years from the date of disbursement of the loan. The project is also likely to be completed in the next two years and as such, the buyer would be ready to move in before the commencement of loan repayment schedule. This facility would be made available to prospective buyers from 22nd to 24th September '07.

HDFC Bank is to raise the interest rate on its home loans across all maturities by 0.50 per cent after Diwali.

"We are raising the rates on all tenures on home loans by 0.50 per cent," HDFC chairman Deepak Parekh told newspersons on the sidelines of a function to mark UK-based Berkley Plc taking stake in Intelenet, HDFC's Business Process Outsourcing entity, here on Monday.

HDFC Bank Ltd., India's third- biggest financial services company by market value, said fiscal first quarter profit rose 34 percent as it gave more loans to individuals and companies and as fees increased.

Net income rose to 3.21 billion rupees ($79 million) in the three months ended June 30, compared with 2.39 billion rupees a year earlier, the bank said in an e-mailed statement. That's higher than the 3.13 billion rupees median estimate of five analysts surveyed by Bloomberg.

Demand for loans from individuals to buy consumer durables and from companies seeking to expand in an economy that grew an average 8.6 percent in the past four years has boosted earnings at Indian banks. More than half HDFC Bank's loans go to individuals who are increasing borrowing as incomes rise.

Even as the government intends to restrain demand in real estate and housing sectors, bankers feel there is no immediate need to increase interest rate since credit growth has moderated in these sectors.

But unlike HDFC Bank, ICICI Bank expects interest rates to remain stable because of various factors including low inflation and high liquidity in the market. The bank, has also asserted the demand in this sector was no longer coming from speculators, but from actual users.

-> Home Loan - Home loans for individuals to purchase (fresh / resale) or construct houses. Application can be made individually or jointly. HDFC finances up to 85% maximum of the cost of the property (Agreement value + Stamp duty + Registration charges).

-> Home Improvement Loan - HIL facilitates internal and external repairs and other structural improvements like painting, waterproofing, plumbing and electric works, tiling and flooring, grills and aluminium windows. HDFC finances up to 85% of the cost of renovation (100% for existing customers).

-> Home Extension Loan - HEL facilitates the extension of an existing dwelling unit. All the terms are the same as applicable to Home Loan.

-> Land Purchase Loan - Be it land for a dream house, or just an investment for the future, HDFC Land Purchase Loan is a convenient loan facility to purchase land. HDFC finances up to 70% of the cost of the land (Conditions Apply). Repayment of the loan can be done over a maximum period of 10 years.

-> Choose from Fixed Rate or Floating Rate with options to structure your loan as Partly Fixed or Partly Floating.

-> Flexible repayment options to suit your individual needs.

-> Loan cover Term Assurance Plan - HDFC Standard Life Insurance Company Ltd. offers an insurance plan*, which is designed to ensure that life's uncertainties do not affect your family's interests and your precious home. LCTAP provides a lump-sum payment on the unfortunate demise of the life assured.

This pure risk plan is designed in a way that the cover decreases as you repay your home loan making it a low cost premium insurance plan.

*Insurance is the subject matter of solicitation.

-> Automated Repayment of Home loan EMI - You can give us standing instructions to repay your Home Loan EMIs directly from your HDFC Bank Savings Account, thus, saving you the trouble of procuring, signing and tracking post-dated cheques.

-> HDFC also offers In -house scrutiny of Property documents for your complete peace of mind.

-> Customer privileges - If you are an existing HDFC Home Loan customer, you can avail of other loans (such as Personal Loans, Car Loans, Two-wheeler Loans and Loan against securities) at lower interest rates.

With most urban centres growing to saturation for a host of business activities, rural initiative is fast becoming the flavour among major players from every sector. After FMCG and telecom bigwigs, now the financial services firms are putting in place a detailed plan aimed at a strong rural presence. HDFC Bank is aiming to take the lead in finance segment which, on a pan India basis, accounts for about 70% of the country's one-billion-plus population.

One of the distinguishing features of HDFC Bank's rural foray is its decision to take the more demanding route of connecting with customers directly, rather than taking the easier direct sales agent route. "The bank prefers to connect to its customers directly," Ashok Khanna, EVP, HDFC Bank said.

India's largest home finance company had plans to cut home loan rates. But now those plans are off with the Reserve Bank of India's announcement on Tuesday to hike the cash reserve ratio by half a per cent, HDFC is in no hurry to reduce interest rates.

''I don't see much impact, home rates will be stable, no reduction. We will be reviewing our rates in three to four weeks," said Keki Mistry, Managing Director, HDFC.

However mortgage companies are divided on whether there could be a small spike in home loan rates. On the one hand by allowing banks to park more funds with RBI has softened the impact of the CRR hike.

The country's largest mortgage finance company, HDFC, may reduce lending rates if the central bank does not tighten rates or resort to a monetary squeeze by hiking the cash reserve ratio (CRR). The company has already seen a decline in borrowing costs in July and is waiting to see whether the decline in rates will be sustained before reducing lending rates.

Although interest rates have gone up during the first quarter of 2006-07, liquidity generated by forex inflows has helped bring down rates in the money markets. Towards July, interest rates have eased and borrowing costs have come down for institutional borrowers. Some banks, which had hiked their lending rates in the fourth quarter of last year, said they would bring down home loan rates.