"I do not see a 10 basis points (bps) change in interest rates impacting demand," said Keki Mistry, VC & CEO of HDFC, on Monday.
There are tax benefits associated with housing loan, so when the bank raise the rates by 10 bps the actual cost to a customer does not go up by 10 bps, said Mistry.
HDFC has hiked the home loan rates by 10 bps with effect from June 2, 2018
There is a reasonable chance that the Reserve Bank of India (RBI) can increase rate by 25 basis points (bps), Mistry said on the central bank's monetary policy.
"Whether the RBI will do it right now or wait till the next credit policy is tough to say,” he said.
On fund raising front, Mistry said, “Interest rates have shoot up, so one has to look more at other avenues of raising money rather than depending only on the bond market.”