Near-term rate hikes by banks, NBFCs unlikely: HDFC CEO

On continuing with HDFC’s ‘teaser’ home loan rate, Keki Mistry said the benefit of lower cost of funds is being passed on to customers

Leading home loan lender HDFC today said a hike in interest rates by banks is unlikely in the near-term, notwithstanding an increase in key lending and borrowing rates by the Reserve Bank of India (RBI) last week, reports PTI.

"In the very short-term, I do not see any hikes by banks and NBFCs (non-banking financial companies)," HDFC vice-chairman and chief executive officer Keki Mistry told reporters in Mumbai.

The Reserve Bank will be taking into account data on inflation, impact of the fuel price hike, progress of the monsoon and the government's spending programme before announcing its quarterly monetary policy due on 27th July, analysts said.

In order to check inflation, the apex bank is expected to further increase the repo and reverse repo rates in its policy announcement, they said.

Contrary to suggestions from his peers that credit offtake has been low in the first quarter of 2010-11, Mistry said HDFC has witnessed "very strong" numbers in the period. "I cannot share the numbers, but they are very strong."

On continuing with the teaser loan, he said it had arrived on the rate based on cost of funds and as the cost has been low, it deemed it right to pass on the benefit to customers.

HDFC had last week announced the continuation of a home loan product under which clients pay a fixed rate of 8.25% till March 2011 and 9.25% for the next year, after which prevailing rates become applicable.



TP Viswamatjam

6 years ago

As in the case of petroleum products, bank interest also should be left to the individual bankers. There should be no administered rate. In the interest of financial security of the banks, RBI can probably put a cap on maximum interest allowed by banks on various deposits.

Information Commissioner lambasts SEBI for providing misleading information under RTI Act

The order was issued in connection with an appeal filed seeking information about all communication received by the market regulator from the capital markets division of the finance ministry

MS Sahoo, whole-time member of the Securities and Exchange Board of India (SEBI) has been issued a show-cause notice by the Central Information Commission asking him to show cause as to why an appellant should not be paid Rs25,000 as compensation for the detriment caused to her on account of the perfunctory manner in which her Right to Information (RTI) application and appeal was heard and disposed of.
Information Commissioner AN Tiwari issued the order in connection with an appeal filed by Seema Kashyap to SEBI seeking information about all communication received by the market regulator from the capital markets division of the finance ministry on norms for approval of new stock exchanges, currency derivatives, SME exchange, interest-rate derivatives, corporate bond markets and ownership guidelines for stock exchanges.
Ms Kashyap received a reply from the Central Public Information Officer (CPIO). However, not satisfied with the reply, she then moved the Appellate Authority. The Authority rejected her plea that the information disclosed had no relation to what had been requested. Ms Kashyap then approached the Central Information Commission claiming that what was supplied by SEBI by way of information was "nothing more than a bunch of irrelevant letters and news items having no relation to the information sought." During the hearing, Ms Kashyap pointed out that rather than provide her the particular information she sought, the CPIO went on a tangent giving out a plethora of entirely unrelated information and surprisingly, the Appellate Authority approved the CPIO's action.
In an order, the Information Commissioner said, "I find that the disclosed information was at variance with what the appellant had requested. The focus of the CPIO and the Appellate Authority ought to have been on the 'communications' of a certain variety as received by SEBI from the government of India and not material on the issues contained in the points which the appellant had listed. I wonder how such elementary aspects of the appellant's RTI query escaped the notice of both the CPIO and the Appellate Authority. Prima facie, there seems to be an attempt to somehow fob off the appellant with some vague information rather than give to her what she had really demanded. If SEBI had received no communication from the government of India of the type the appellant had mentioned in her RTI application, a proper response to that effect would have been entirely in order. Unfortunately, that was not to be."
The Information Commissioner directed the CPIO to provide precise information sought by Ms Kashyap pertaining to her RTI queries within two weeks. The Commission also issued notices to the CPIO as to why proceedings under Section 20 of the RTI Act should not be drawn up against him for providing false and misleading information to the appellant.
While the order was issued some time ago, it has been put in the public domain only recently. This is probably the first time that a regulator has been threatened with a fine for not providing proper information to a citizen under the RTI Act.

Interestingly, under the previous chairman, SEBI used to take pride in its claim that it answered all RTI queries. However, the regulator now seems to share the same attitude at the two leading bourses - the National Stock Exchange and the Bombay Stock Exchange - who have both gone to court claiming that they should not be subject to the RTI Act.

Meanwhile, SEBI had filed a writ petition against the CIC order in the Bombay High Court. The HC, while admitting the petition sent a notice to the CIC, returnable by 26th July and said, "...till then there will be ad interim order in terms of prayer clause".




6 years ago

If SEBI, NSE and BSE have nothing to hide, why they are claiming exemption from RTI? The more they shirk their responsibility to share the information in the public, more will be curious to know what they are trying to brush under the carpet.


6 years ago

The regulator has never tried to be transparent to public through-out tenure of Mr Bhave-though it is fully dependent on public participation-is SEBI a defence or army organisation whose revelations could threat country's defence-this is gross case of dictatorial attitude of this organisation-if this condition prevels for longer-people will soon loos faith in all such govermental bodies which are directly related to public participation-
god save this country-

Omprakash Jha

6 years ago

Dear Sir,

We have gone through your article on SEBI not providing correct information to the RTI Applicant. However this representation is not true and you may like to clarify this in your journal.

The matter is sub judice under Writ Petition (L) No-1319 of 2010 before the Hon'ble Bombay High Court and the Hon'ble High Court has granted stay against CIC order by its order dated 14/06/2010.

Thanking you.

jagdish manghnani

6 years ago

Dear Sir

This is a good issue to fight beacause if one instution gets away like this every one will take the same way

Awating an early reply from your end

Vijay Trimbak gokhale

6 years ago

Notice regarding compensation is isuued to SEBI Chairman as Head of public authority to be repeated to AA of SEBI Mr. Sahoo. This is because the obligations of public authority are basically the obligations of the Head of the authority, who should ensure that these are met in right earnest. Refernce to public authority in guidelines issued by Ministry of Personnel is, in fcat, a reference to the head of te public authority.

Vijay Trimbak Gokhale

6 years ago

The implementation of RTI Act by SEBI desrves this and many more such orders from SEBI. SEBI management must take steps to improve the quality of replies from CPIO and orders of AA.

Railways to bar e-ticket agents from using tatkal service

Web-based ticket agents will not get access to tatkal bookings from 8am to 9am following complaints from passengers, who claim that agents corner tickets during this period

Railways have decided to bar web-based ticket agents of Indian Railway Catering & Tourism Corporation (IRCTC) from getting access to tatkal bookings from 8 am to 9 am after receiving complaints against them from people.

Passengers have been long complaining of the IRCTC website crashing as soon as the booking commences in the morning. There are complaints that agents corner tickets during this period and tatkal quota getting exhausted within minutes, said a Railway official.

"Taking such complaints into account, Railways have decided not to give the web-based agents and webservices agents of the IRCTC access to tatkal booking from 8 am to 9 am," he said, adding the decision will be implemented shortly.

The move will, however, be temporary in nature. "We want to give individuals a chance to book their ticket without any problem and if passenger complaints are addressed through this move we would implement the decision permanently," he said.

Indian Railways sees over 9.5 lakh booking across the country each day, 30% of which is done through the IRCTC portal. There are approximately about eight lakh agents under IRCTC.

According to reports, railway minister Mamata Banerjee was also believed to have asked the Railway Board to find ways to address the issue after being inundated with such complaints.

Tatkal tickets apart, IRCTC agents will also be barred from getting access to booking berths on trains on the first day of advance reservation period.

Advance reservation period opens 90 days in advance and the agents cannot have access to booking for the first hour on the opening day, the official said.

"With this move, we want to curb the menace of touting as passengers have often complained of," he said.

Railways have also launched special drive to get rid of touts resorting to irregularities at passenger reservation counters.

The problem is more pronounced during holiday seasons and festivals.




6 years ago

online pemint dwara tiket book na karne dain only cauntar only agent sarvar khud ba khud sahi ho jayega har admi com putar liye railway sid khol raha hai

Padma Balasubramani

6 years ago

I totally agree with the above decision. Regular visitors like me will surely benefit from this.
Sites like Make my trip should be banned from blocking tickets. I am a victim of one such incident with Make my trip which was costing me around Rs. 1,650/- for the journey which i did not take.

Hope the govt will implement it permanently.
Padma Balasubramani


6 years ago

Completely agreed Rakesh, i don't understand if IRCTC Server is not able to handle the load of so many agents, why do IRCTC make so many agents.

i think they are trying to hide their in capabilities by restricting the Authorized agents and allowing the business of Dalals 7 Touts to Boom.


6 years ago

if irctc and indian railway dont able provide better service and if indian rail and irctc now find problems why irctc distribute 8laks licence?
its mention in second party licence agrrement agent have permission to book 90days booking. agents using irctc site which pass from more than 3 server and payment also done but indian railway even having direct server and no need payment how they blame eticket agents who really struggle get tickets. if indian railway feels shame that they fail even having direct access than goverment need refund deposite to all agents and have to close this fake shop like irctc because than railway people and there broker can earn well from window it is not customers problem but it is railway people and there brokers problem that now they dont get extra income and it is the fact for which now they claim eticket agents.


6 years ago

jab service hi band karna tha to agency kyu diya agency se ek family ka pet chalta mamta ji ek taraf factory dal rahi hai ektaraf pet pe lath mar rahi hai plz think about agents . thanking u


6 years ago

HI Narendra, sorry to see people who are educated and have a strong point of vierw talk like that. Have you thought about the people who do not have means or instruments to go online to do the booking do you know they can only approach the touts who are going to do nothing but charge 2 - 3 times the cost of a normal ticket?


6 years ago

koi fayda nahi e-ticket se sabhi yatriyo ko ticket mil jata hai yeh suvidha band hone railway counter dalao aur apretero ki mili bhagat se aur kala bazari bhad jaygi.


6 years ago

This new decision of IRCTC will destroy our existing business,our customers will break and we will be unemployed.Therefore we request you to rethink on your decision and allow us to continue and there are many like us who are depending for their daily bread from this business.
New direction for irctc e-ticket agents
pleas pleas pleas
not off page

Kunal Reddy

6 years ago

5. What railway needs to do is Improve first the railway service in booking train tickets, their site never works properly to book a normal ticket let alone the tatkal ticket, and if by mistake you login at 8 am the website then crashes before ticket is removed, this is all railway system which is not upto the mark which is cause all this, they should solve this first then look at harassing us agents


6 years ago


Narendra Doshi

6 years ago

Much needed gesture from Mamta. Hope the implementation date is pretty soon. I am sure the outcome will be as desired benefitting the common man.

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