The annual credit policy of the Reserve Bank of India, in which the repo rate has been increased, has led to an increase in lending rates.

The HDFC had earlier raised the rates by 25 basis points from February 1.

The SBI, another massive lender in the housing sector, has raised the interest rates by 75 basis points.

This was after withdrawing its much publicised concessional teaser rates last month.

Other major banks which increased the housing loan rates are Punjab National Bank, ICICI, Oriental Bank and Corporation Bank.

Many other banks are reported to be completing the administrative formalities for raising their interest rates.

Another development is the revision in deposit rates by some banks which will jack up the cost of funds.

It can be expected that during the next one year, the trend will be to place housing loan rates in general at higher levels.

K. SUKUMARAN

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