HDFC, a leading mortgage lender sees a 22-25 percent rise in its loan disbursals this financial year, according to a senior official.

HDFC's Joint Managing Director, Renu Sud Karnad said, "We expect a loan disbursal growth of 22-25 per cent this fiscal."

In the first six months of the fiscal, HDFC registered a 26 percent increase in its loan disbursals.

The official said that she expected the interest rates to increase by 25-50 basis points (100 basis points=1 percentage point).

Talking about housing demand, Karnad said, "the numbers we are getting from across the country are looking up. Growth and demand is here to stay because the housing shortage in India is huge."

HDFC is also planning to exercise warrants. After the conversion HDFC's share in the bank would rise to almost 24 percent.