Country's premier housing finance company, Housing Development Finance Corp. Ltd (HDFC) has decided to cut its retail prime lending rate, by 25 basis points to 13.75%.

While, for the new Home Loan customers, its rate of interest under the Adjustable Rate Home Loan (ARHL) continues to be at 10.25% per annum.

The move will benefit old borrowers of the corporation, who have availed of floating rate loans. According to an estimate, over 90% of borrowers are presently on floating rates.

The last time HDFC had announced a rate cut in July 2003. Since then, it had raised its benchmark rate from 9.75% to 14% through 10 hikes. The rate cut takes effect from 1 February, 2008.

The other two key players in the sector - ICICI Bank and SBI said that they have not yet taken any decision to cut rates.

Earlier this month, the company has posted growth of 82.54% in net profit of Rs 648.9 crore for the quarter ending on 31-DEC-2007 against Rs 355.49 crore (inclusive of exceptional income) for the quarter ending on 31-DEC-2006.     

Shares of the company gained Rs. 156, or 5.49%, to settle at Rs 2995. The total volume of shares traded was 482,945 at the NSE on Friday.