SBI seeks to double its mortgage portfolio to Rs 10 lakh cr over the next five years: chairman
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Mumbai, February 10 (PTI) The country’s largest lender, State Bank of India, said on Wednesday it had crossed the 5 lakh crore mark in its mortgage lending business and expects to double the portfolio in the next five years.
Among all the listed commercial banks, SBI’s share in the mortgage segment is around 34%. It offers an interest rate on home loans starting at 6.80 percent.
“We have crossed the Rs 5 lakh crore mark. This is a journey we have taken almost from 2011 to 2021. So in about 10 years we have built this book from around Rs 89,000 crore to Rs 5 lakh crore, “bank chairman Dinesh Khara told reporters.
About 51% of the lender’s home loan clients are from urban, semi-urban and rural areas, and the remaining 49% are from subways, he said.
When asked how soon the bank would meet the next goal of Rs 5 lakh crore in home loans, Khara said the time needed would be much shorter.
“As for our next target, we are aiming for a target of around Rs 7 lakh crore in about three years and maybe Rs 10 lakh crore within five years,” he said.
The demand for home loans is a function of the economy and demographics, and there is certainly a change in this regard, with the younger generation looking to buy a home at a much younger age than 10 years earlier, said. he adds.
“We have found that 42% of our mortgage clients are in the under 40 age group.
“I think in the future we will see a much bigger shift in this direction and the increased incomes of the younger generation, their aspirations and the concept of the nuclear family are going to be the reasons people will ask. housing at a young age, ”noted Khara.
Gross non-performing assets (APM) in the home loan segment are 0.67 to 0.68 percent, he said.
Khara said that of about 39 borrowers who could be considered under the RBI’s unique restructuring plan, only around 10,000 clients have taken advantage of the restructuring option, which amounts to about 2,500 crore. rupees.
“So if we look at a book size of Rs 5 lakh crore, of that total only Rs 2,500 crore has been restructured,” he said, explaining the quality of the mortgage book.
About 72 percent of our clients are in the salary bracket and all of them are able to deliver on their commitments fairly well, he noted.
On the Rs 5 lakh crore home loan book, the repossession loans account for around 23%.
For all builders, the approval time for a home loan is around five days, while in other cases, the timeframe is 12 days, he said.
“We are strengthening our system. The new personal loan management system is being put in place, which will definitely reduce the time needed,” he said, adding that the lender was trying to approve of more and more builders in order to further reduce the turnaround time. delay to 5 days from 12 days at present.
The chief executive of the lender (retail bank and digital bank), CS Setty, said the bank is trying to transfer approval for home loans when the links between the builders are present on the Yono platform.
“The client can come and start their journey directly on the Yono platform itself so that even the 5 day turnaround time can be further reduced. Pre-approval can be given in 5-10 minutes under Yono himself. same, “he said, adding that the customer can then go to the bank branch and complete the documentation.
The lender is also the only bank designated by the Ministry of Housing and Urban Development (MoHUA) as the Nodal Central Agency (CNA) for processing the Pradhan Mantri Awas Yojana (PMAY) grant.
About two lakhs of home loans were sanctioned under the PMAY, the bank said. PTI HV BAL
Warning :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI