PNB Housing Finance has increased its benchmark retail lending rate by 35 basis points for both home and non-residential loans.
The increase in the reference interest rate for private customer loans came into force on May 9, 2022.
In its regulatory filing, PNB Housing said, “effective May 9, 2022, PNB Housing is increasing its retail lending benchmark rate for home and non-residential loans, against which its adjustable rate loans are measured, by 35 basis points.”
PNB Housing Finance’s asset base includes personal loans and corporate loans. The retail customer business focuses on organized mass housing segment financing for the purchase or construction of houses. In addition, it also provides loans against real estate and loans for the purchase and construction of non-residential buildings. Corporate loans are primarily aimed at developers for the construction of residential/commercial real estate, term corporate loans and lease discounts.
The hike in the retail lending benchmark comes after the RBI raised its main policy rate by 40 basis points to 4.40%. Also, RBI adjusted the standing deposit facility (SDF) rate to 4.15%, and fixed the marginal standing credit facility (MSF) rate and bank rate at 4.65%.
Additionally, PNB Housing stated on its website that the repo-linked lending rate (RLLR) for existing customers is currently 6.90% effective June 1, 2022. For new customers, however, the RLLR will apply from May 7, 2022.
Last week, on Friday, PNB Housing stock stood by €347.80 each, down 3.5% on BSE.