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,” said managing director for national banking and group executive B Sriram.
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 per cent uptick year-on-year.
In percentage terms, the growth is 14-15 per cent year-on- year in the first half, he said, adding, “We are hopeful that it will become 18-20 per cent 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 traction on loan queries and disbursals.
On the average ticket size, Mr. Sriram said it is improving and it is Rs. 30-32 lakh now and the focus is to take it to Rs. 50 lakh.