HDFC Bank is not mulling a rate cut on its auto loans offering as done by State Bank of India (SBI), in the near future, a senior official has said.
The city headquartered HDFC bank is not contemplating a rate cut even though SBI announced a reduction of up to 0.5 per cent in its auto loan offering earlier this month, senior Executive Vice-President and Business Head for Vehicle Loans, Ashok Khanna, told PTI.
“Not immediately,” he answered, when asked if HDFC Bank will also take a cue from SBI and follow suit with a rate cut.
Khanna said his bank lends up to Rs 1,500 crore on vehicle loans a month, holding a share of 22 per cent in the market.
While announcing the rate cut, SBI executives had claimed that the bank held a 19 per cent share.
The SBI move, which also included a cut in its home loan rates, was prompted by the twin non-monetary rate cut moves by the RBI over the past two months, wherein it announced a hefty increase in export credit refinance to 50 per cent and the one per cent cut in statutory liquidity ratio (SLR).
When asked about the growth from the auto landing segment for HDFC Bank, Khanna said it has been growing at 10 to 15 per cent on an annual basis and stressed that the growth this year is satisfactory.
Khanna said HDFC Bank usually charges anything from 11 to 13 per cent for new cars while for the used vehicles, where it lends up to Rs 300 crore per month, the rates go up to 16 per cent.