The Bank projects Rs. 7 lac crore lending in the home loan segment by FY 2024; The Home loan portfolio of the Bank has grown by 5 times in the last decade
On average, the Bank on-boards 1000 home loan customers every day; The Bank offers home loans starting at 6.80% per annum
Missed call facility for home loan inquiries; Rs. 2 lakh home loans sanctioned under PMAY
Mumbai, NFAPost: Maintaining its leadership in the home loan segment intact, the State Bank of India (SBI) has reached another landmark by crossing the Rs 5 trillion (5 Lakh crore) mark in its home loan business. The bank has set its sight on achieving a home loan AUM of Rs 7 trillion by FY 2024.
The Real Estate and Housing Business unit of SBI has grown 5 times in the last 10 years with an AUM of Rs. 89000 crore in 2011 to Rs. 5 trillion in 2021. Despite a massive setback to the real estate sector triggered by pandemic-induced lockdown, the REHBU vertical registered unparalleled growth in the home loan business.
SBI witnessed spectacular growth in Home loans in December 2020 with the highest sourcing, sanctions, disbursements, and growth that the bank had ever registered. The Bank has also launched a new facility for new home loan customers who can get all information on home loans by giving a missed call on 7208933140.
SBI Chairman Dinesh Khara said it is a momentous achievement for State Bank of India and this extraordinary feat is a testament to customers’ continuous trust in the bank.
“We feel that combining technology with personalized service is the key in the current scenario. The bank is also working on various digital initiatives to improve the efficiencies in home loan delivery including a unique integrated platform Retail Loan Management System (RLMS) which will provide an end-to-end digital solution,” said Dinesh Khara.
He also pointed out that the company is also happy to express that SBI has become the market leader in home loans by adopting a focused approach and acknowledging it as a national priority. “We have always treated home loans as a growth driver for the nation and not just as mere transactions. We, at SBI, will continue focusing on enhancing customer delight that will in-turn enable the bank to scale newer heights,” said Dinesh Khara.
SBI is making a continuous effort to make affordable housing conveniently accessible to customers with dreams of owning their desired home. The bank offers home loan customized to suit the requirement of individuals with home loans such as Regular Home Loan, SBI Privilege Home Loan for government employees, SBI Shaurya Home Loan for army and defense personnel, SBI MaxGain Home Loan, SBI Smart Home, Top-up Loan for existing customers, SBI NRI Home Loan, SBI FlexiPay Home Loan for a loan of the higher amount and SBI HerGhar Home Loan for women.
SBI is also the only bank designated by MoHUA (Ministry of Housing and Urban Development) as the Central Nodal Agency (CNA) for processing Pradhan Mantri Awas Yojana (PMAY) subsidy. To support Govt’s flagship program of ‘Housing for all by 2022’, SBI has been continuously extending home loans under PMAY and has sanctioned 1,94,582 home loans as of December 2020.
With interest starting as low as 6.80% per annum, SBI commands a market share of 34% in the home loan segment. On average, the bank onboards around 1000 home loan customers per day that signifies SBI’s commitment towards affordable housing.
SBI has also completely waived the processing fee till March 2021for customers availing home loans in SBI approved projects. The Bank is also working on themes like focused development of the Home Loan business, refined analytics for boosting growth, easing home loan journey for customers, and post disbursal engagement with home loan customers.
Going forward, SBI is also looking at implementing AI, Cloud, Blockchain, machine learning which can play a pivotal role in propelling not only the home loan business of the bank but also other businesses. The bank is gearing up to initiate a co-lending model for home loans which will help boost SBI’s footprints in the unorganized sector.
With the use of cutting-edge technology, a vast network of branches, dedicated to Central Processing Centers (CPCs) in 215 centers, bank’s digital and lifestyle platform, YONO, and other enablers, SBI has hit Rs. 5 trillion marks in the home loan business.
SBI is also continuously focusing on strengthening collaboration with builders so that it can offer more choices of homes to home buyers. The bank is consistently ingraining the latest technology into its operational and delivery platforms to make the home loan journey smoother for customers.
Having withstood all downturns, SBI’s home loan market share has been steadily increasing. Moreover, this segment has the lowest default rate indicating excellent asset quality and thereby contributing handsomely to the Bank’s income. SBI forayed into the home loan business in 2004 with a total portfolio of Rs. 17000 crore.
A separate Real Estate and Housing Business Unit (REHBU) came into being in 2012 with a total portfolio of Rs. 1 lakh crore. SBI became the market leader in the home loan segment in FY 2014, and since then has continued to take rapid strides in this business segment culminating in the achievement of the Rs. 5 trillion milestones in January 2021.
SBI is the largest commercial bank in terms of assets, deposits, branches, customers, and employees. It is also the largest mortgage lender in the country. The home loan portfolio of the bank has crossed the milestone of Rs. 5 lakh crore. As on December 31, 2020, the bank has a deposit base of over Rs. 35 lakh crore and advances of more than Rs. 26 lakh crore with CASA ratio of about 45%.
SBI commands over 34% market share in home loans and around 33% in the auto loans segment. The Bank has largest network of more than 22,000 branches in India with an ATM / CDM network of nearly 58,000 and total BC outlets of over 71,000. The number of customers using internet banking and mobile banking stand at 85 million and 19 million respectively.
The integrated digital and lifestyle platform by SBI – YONO has crossed 74 million downloads mark. YONO which has over 34.5 million registered users, witnesses 9 million logins per day. Accelerating the digital agenda, SBI has opened over 1.5 million accounts through YONO in the quarter ended December 2020 with nearly 91% of YONO eligible savings bank customers migrated on YONO.
In terms of digital lending, bank disbursed pre-approved personal loan (PAPL) worth Rs. 5300 crore via YONO in the same quarter. YONO is also a global name having tasted its success in international markets as well. On social media platforms, SBI has the highest number of followers on Facebook and Twitter amongst all banks worldwide.
