MUMBAI, Feb 10 (Reuters) – India’s largest lender, the State Bank of India, plans to double its home loan package to 10 trillion rupees ($ 137 billion) in the next five years after it crossed the 5 trillion mark in January, the bank’s chief executive said.
“Home lending is now the largest business unit in the bank and will continue to be an important growth driver,” SBI Chairman Dinesh Kumar Khara told a media conference.
The lender’s home loan volume has grown five times in the last decade from 86,000 crore rupees in 2011.
At a time when several other lenders have seen pressure in their sales loan records, SBI has allayed such concerns and stressed their plans to focus on the sector. The current customer base, with a focus on salaried employees, has been monitoring bad loans in the region, Khara said.
Total non-performing assets in the home loan category are 0.67% of the total loan volume. With a greater focus on home lending, the bank is looking to increase its share of sales in the total loan book to 45% in one year, from 39% now.
$ 1 = 72.8310 Indian Rupees Reporting by Nupur Anand. Edited by Mark Potter