HDFC, the country’s largest housing finance company (HFC), on Wednesday said it has cut its rates by five basis points.

HDFC’s loans will now start from 6.75 per cent. The mortgage lender’s offer to its existing and new clients comes soon after competitors such as State Bank of India and Kotak Mahindra Bank brought down their rates by 10 basis points.

A statement by the lender said it had reduced its retail prime lending rate — against which all its loans are benchmarked — by five basis points with effect from March 4.

HDFC said the change would benefit all existing retail customers.

Before this revision, the corporation was offering loans beginning at 6.80 per cent.

Bond issue

In a separate announcement, HDFC said it will raise up to Rs 5,000 crore by issuing non-convertible debentures on a private placement basis.

In a regulatory filing, HDFC said that the issue will open on March 5 and close the same day. The base size of the issue of secured redeemable NCDs is Rs 2,000 crore with an option to retain oversubscription up to Rs 3,000 crore, it added.

Meanwhile, state-owned Bank of Baroda has raised Rs 4,500-crore equity capital through a qualified institutional placement (QIP).

The capital raising committee of the board on Wednesday approved the issue.