SBI home loan book hits Rs 5 L cr milestone, eyes Rs 7 L cr by 2024

NEW DELHI: State Bank of India has reached the milestone of 5 trln rupees of home loans , and aims to raise its loan book to 10 trln rupees over the next five years, Chair man Dinesh Khara said.

India's largest bank hopes to achieve this target driven by favour able demographics and push for affordable housing in the country.

In a press release, the bank stated that it is targeting 7 trln rupees of home loans by 2023-24 (Apr-Mar).

Khara said that SBI now has a 35% market share in the home loan segment among scheduled commercial banks, which means one of every three home loans given in the India is from the country' s largest lender.

SBI's achievement on portfolio size is commendable especially as the bank was ear lier a marginal player in this space , and it was under O .P Bha tt and Pratip Chaudhuri that the bank began to pivot towards retail lending, including through fixed-floatingrate loans that the Reserve Bank of India deemed "teaser loans".

In 2011, SBI's assets under management under this book were 890 bln rupees. When this business was launched in 2004, the home loan book was just 170 b ln rupees.

Crucially, the lender h as achieved growth in this business through home loans, including its focus on affordable housing.

Home loans makeup around 4.86 trln rupees of this book, and builder loans just 110 bln rupees.

The bank does not include loan against property in its home loan book.

The lender has given 194,582 home loans under the Pradhan Mantri A was Yojana until December, but did not disc lose the amount.

About 23% of its home loan book was fr om takeovers of loans, especially due to savvy metro customers w ho tend to be more price-sensitive.

However, the bank has not bought home loan portfolios over the last year, and repayments meant that this book was shrinking and stands at 40 bln rupees.