PNB Housing Finance increases retail lending reference rate on housing

New Delhi: PNB Housing Finance has increased its housing and non-housing retail lending reference rate by 35 basis points.

The increase in the retail lending reference rate will take effect on May 9, 2022.

"PNB Housing increases its Retail Lending Reference Rate on Housing and non-Housing loans, on which its Floating Rate Loans are benchmarked, by 35 basis points, with effect from May 9, 2022," according to a regulatory filing.

Retail and corporate loans create PNB Housing Finance's asset base. The retail division focuses on mass housing financing for the purchase or construction of homes. It also offers loans against properties as well as loans for the purchase and construction of non-residential buildings. Developers, corporate term loans, and lease rental discounting are the most common uses for corporate loans.

The increase in the retail lending reference rate follows the RBI's 40-basis-point boost in the key policy repo rate to 4.40 percent. The standing deposit facility (SDF) rate was also maintained at 4.15 percent, while the marginal standing facility (MSF) rate and the Bank Rate were both fixed at 4.65 percent.

PNB Housing further announced on its website that the repo linked lending rate (RLLR) will be 6.90 percent for existing clients starting June 1, 2022. The RLLR, on the other hand, takes effect on May 7, 2022 for new consumers.

PNB Housing shares were trading at 347.80 on the BSE last Friday, down 3.5 percent.