State Bank of India (SBI), India’s largest bank, expects to double its home loan portfolio in the next five years to ₹10 lakh crore on the back of higher economic growth and demographic dividend.
According to Chairman Dinesh Kumar Khara, SBI took nearly 10 years to grow its home loan portfolio from ₹89,000 crores in FY2011 to cross the ₹5 lakh crore mark now, emphasizing that the delinquency in the home loan portfolio in terms of gross non-performing assets (GNPAs) is only 0.68% of the portfolio. According to him, with the implementation of the retail loan management system, SBI will be in a position to crunch the average home loan turnaround time to 5 days from 12 days. It was also observed that the average home loan ticket size has gone up from ₹25 lakh two years ago to ₹31 lakh now. According to the Managing Director, CS Setty, 60% of the existing customers have a credit score of 750 & above.

 

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Of the ₹5 lakh crore home loan portfolio, almost 23% is by way of balance-transfer, especially in metros, from other lenders, he said. Of the total home loan portfolio, ₹4.86 lakh crore is to the individual borrowers, and the balance is towards builder financing.

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