By maintaining intact its leading position in the home loan segment, the State Bank of India (SBI) has taken a new step by crossing Rs. 5,000 billion dollars (5 crore Lakh) in its mortgage lending business. The bank has set itself the goal of obtaining an outstanding mortgage loan under management of Rs. 7 trillion by fiscal year 2024.
SBI’s real estate and housing business unit has grown 5 times over the past 10 years with assets under management from Rs. 89,000 crore in 2011 to Rs. 5,000 billion in 2021. Despite a massive decline in the real estate sector Triggered by the pandemic-induced lockdown, the REHBU vertical has experienced unprecedented growth in the real estate lending field. SBI saw spectacular mortgage lending growth in December 2020 with the highest levels of sourcing, sanctions, disbursements and growth the bank has ever recorded. The Bank has also launched a new facility for new mortgage customers who can get all the information on mortgage loans by making a missed call to 7208933140.
Dinesh Khara, Chairman of SBI, said: “This is a momentous achievement for the State Bank of India. This extraordinary achievement is a testament to the customers’ continued confidence in the bank. We believe that combining technology with personalized service is key in today’s scenario. The bank is also working on various digital initiatives to improve the efficiency of home loan delivery, including a single integrated Retail Loan Management System (RLMS) platform that will provide an end-to-end digital solution. We are also pleased to express that SBI has become the leader in the home mortgage market by taking a focused approach and recognizing it as a national priority. We have always treated home loans as an engine of growth for the nation and not just as simple transactions. At SBI, we will continue to focus on improving customer enjoyment which in turn will take the bank to new heights. “
SBI makes an ongoing effort to make affordable housing readily available to clients who dream of owning the home of their choice. The bank offers personalized home loans to meet the needs of individuals with home loans such as regular home loan, SBI Privilege home loan for government employees, SBI Shaurya home loan for military and military personnel. defense, SBI MaxGain home loan, SBI smart home, Top-up Loan for existing clients, SBI NRI Home Loan, SBI FlexiPay Home Loan for highest amount loan and SBI HerGhar Home Loan for women.
SBI is also the only bank designated by MoHUA (Ministry of Housing and Urban Development) as the Nodal Central Agency (CNA) for processing the Pradhan Mantri Awas Yojana (PMAY) grant. To support the government’s flagship program “Housing for All by 2022”, SBI has continuously extended housing loans under PMAY and sanctioned 1,945,82 housing loans in December 2020.
With interest rates starting at 6.80% per annum, SBI has a market share of 34% in the home loan segment. On average, the bank receives around 1,000 home loan clients per day, demonstrating SBI’s commitment to affordable housing. SBI has also completely waived processing fees until March 2021 for clients receiving mortgage loans in projects approved by SBI. The Bank is also working on themes such as the targeted development of the mortgage lending activity, refined analyzes to stimulate growth, facilitate the mortgage loan journey for clients and post-disbursement engagement with mortgage lending clients.
Going forward, SBI also plans to implement AI, cloud, blockchain and machine learning, which can play a central role in propelling not only the bank’s mortgage lending business, but also other companies. The bank is preparing to launch a co-lending model for home loans that will help strengthen SBI’s footprint in the unorganized sector. Through the use of cutting-edge technology, an extensive network of dedicated Central Processing Center (CPC) branches in 215 centers, the bank’s digital and lifestyle platform, YONO, and other facilitators, SBI has reached Rs. 5,000 billion Marks in the home loan business.
SBI also continuously focuses on strengthening collaboration with builders so that it can offer more home choices to homebuyers. The bank is constantly integrating the latest technologies into its operational and delivery platforms to facilitate the mortgage loan journey for customers.
After weathering all the downturns, SBI’s mortgage market share has steadily increased. In addition, this segment has the lowest default rate indicating excellent asset quality and thus largely contributing to the Bank’s income. SBI made a foray into the home loan business in 2004 with a total portfolio of Rs. 17,000 crore. A separate Real Estate and Housing Business Unit (REHBU) was established in 2012 with a total portfolio of Rs. 1 lakh crore. SBI became the market leader in the home loan segment during fiscal year 2014, and since then has continued to progress rapidly in this business segment, culminating with the achievement of Rs. 5,000 billion milestones in January 2021.
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