New Delhi: Country's largest lender State Bank of India has set an ambitious target of disbursing Rs 250 crore of home loans every day during the ongoing festive season, which currently stands close to Rs 200 crore.
After it waived off the processing fee late September as part of its festive offering, the bank is disbursing close to Rs 200 crore home loans every day. "The home loan disbursement is going up each day. It was Rs 130 crore in the beginning when we scrapped the processing fee. Then it moved up to Rs 150 crore, and then Rs 175 crore, and has now stabilised at Rs 188 crore a day. My target is Rs 250 crore a day," managing director for national banking and group executive B Sriram told PTI in an interview.
Year-to-date, the home loan sanctions stood at Rs 20,032 crore as against Rs 18,500 crore a year ago, he said, constituting around 14 % uptick year-on-year.
In percentage terms, the growth is 14-15 % year-on- year in the first half, he said, adding, "we are hopeful that it will become 18-20 % in the current quarter."
Stating that the bank has not launched any scheme during the festive season but has waived off the processing charges on car and home loans, Sriram said from the last week of September the bank was seeing quite a traction on loan queries and disbursals.
On the average ticket size, Sriram said it is improving and it is Rs 30-32 lakh now and the focus is to take it to Rs 50 lakh. "We are focussing on high value home loans because now almost 80 % of our home loans are below Rs 50 lakh. So we are not very much in the above Rs 50 lakh segment. And above Rs 75 lakh we are just 12 %. So we need to improve that and have also brought down interest rates on par with the other segment. This is one focus areas now. We need to push the average ticket size to about Rs 50 lakh," Sriram said.