The Financial Express
State Bank of India (SBI) on Wednesday said it has added Rs 1 trillion in its assets under management (AUM) under home loans during the past 18 months. The bank now has AUM of Rs 6 trillion in the home loan segment, compared with Rs 5 trillion in January 2021.
SBI is the first bank in the country to achieve Rs 6-trillion AUM in the home loan segment, the lender said in a release. The loan book of Housing Development Finance Corporation (HDFC) on an AUM basis stood at Rs 6.71 trillion as of June 30, 2022. Of this, the retail home loan book was of Rs 5.363 trillion and the non-individual loan book stood at Rs 1.351 trillion.
SBI’s market share in home loans is 33.3%. Banking sector lending to housing segment, including priority sector, grew 16% year-on-year in August, with total outstanding being Rs 17.8 trillion.
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“We are extremely grateful to our customers, comprising more than 28 lakh families, who have trusted us and chosen us to be their partner in the home-ownership journey,” SBI chairman Dinesh Khara said.
To mark this occasion, SBI will offer a concession of up to 0.25% on home loans, 0.15% on top-up loans, and 0.30% on loan against property. The interest rate for buyers of new home loans as well as takeovers starts at 8.40% and the same for top-up loans starts at 8.80%. The bank has also completely waived off processing fees on home loans up to January 31. Earlier, SBI had said that it would charge 50% of processing fees on home loans during the festive period.
Banks’ share in the home loan segment has risen to around 62% as of March 2022, ratings agency Crisil said in a report. Within banks, public sector banks are the dominant market players accounting for 61.2% of the total housing loan portfolio in FY21, the economics department of Bank of Baroda said.
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