HDFC launches new product to boast housing sector
by Lalin Fernandopulle
The Housing Development and Finance Corporation Bank (HDFC) launched
the 'Dhana Nidahana' Pass-through Investment Certificate, a product
designed to offer higher interest rates with higher maturity periods
that match an existing asset base.
|
Deputy Finance Minister Ranjith Siyambalapitiya, Chairman HDFC
Bank S. M.M . Yaseen and General Manager C. A. Sarathchandra
unveil a model of the new product.
Pic by Sumanachandra Ariyawansa. |
The bank offers cash for home and related lifestyle needs up to 90
percent of the certified value at the time the certificate is submitted.
HDFC has made its investment instrument almost risk free by offering
cash security to cover the total face value of the certificate with a
high return.
"As any investor seeks security, higher return and liquidity, the
HDFC Bank has designed its product to meet the long term aspiration of
the customers", Chairman HDFC Bank, S. M. M. Yaseen said.
The investment certificates can be purchased for any amount in
multiples of Rs. 50,000 from seven to 15 years. With an investment of Rs.
9,140 for 15 years an investor will get a certificate of a face value of
Rs. 50,000.
A unique feature of the product is that it is secured with cash
collateral which is possible only by long term lending institutions such
as a housing bank.
"The investment certificate is a financial tool that will boost the
housing sector and the economy as the construction sector affects a
number of other vital industries that make an immense contribution to
the country", said General Manager HDFC Bank, C. A. Sarathchandra.
HDFC Bank provides housing loans to low and middle income families.
The bank will use its long term housing loan portfolio to secure the
Dhana Nidahana certificates.
"Sri Lanka's capital market is not developed. Promoting long term
investments will be beneficial to investors and the economy",
Sarathchandra said.
The HDFC Bank has finalised the approval and procedural aspects for
Islamic financing and is planning to launch the product soon.
Launched as a Building Society in 1984 it is today a licensed bank
under the Ministry of Finance and Planning. HDFC Bank has a 15 percent
market share in the competitive housing finance industry with a loan
portfolio of around Rs. 12 billion for 100,000 housing units.
[email protected]
|
