SBI Marks Unprecedented Growth in Home Loans, Crosses INR 6 Trillion Milestone in FY2023
MUMBAI (India CSR Exclusive): The Government of India (GoI) considers home loans as a priority sector lending. This means that banks are required to lend a certain percentage of their total lending to home loans.
State Bank of India (SBI), India’s largest banking entity, has continued to dominate the home loan market with its strategic approach and commitment to meet the evolving needs of its customers. The Bank’s real estate portfolio has made a significant leap, crossing the landmark of INR 6 Trillion and reaching an impressive INR 6.41 Trillion as of March 2023. This accomplishment reflects a robust year-on-year growth rate of 14.07%.
Further showcasing its financial strength and leadership in the sector, SBI disbursed a staggering amount of approximately INR 1.73 Trillion in home loans and related loans during FY2023.
The country’s largest lender reports a sustained increase in home loan disbursements and its real estate portfolio amidst a boom in residential real estate sales. This strong performance reflects the increased consumer interest in real estate investments in metro cities as well as Tier-II and III cities.
Sustained Market Growth in Real Estate
The recent period has seen a steady rise in housing sales and new launches, primarily due to robust demand from consumers across metro, Tier-II, and Tier-III cities. This trend indicates the consumers’ strong inclination to invest in real estate.
SBI’s Unprecedented Performance in Home Loans
SBI has successfully maintained its position as the leading home loan provider in India, with strategic decisions contributing to this success. The Bank’s real estate portfolio crossed the INR 6 Trillion mark, reaching INR 6.41 Trillion as of March 2023, marking a year-on-year growth rate of 14.07%. In FY2023, the Bank disbursed approximately INR 1.73 Trillion of home loans and related loans.
Table of Critical Points:
| Key Highlights | FY2023 |
|---|---|
| Position in Home Loan Market | No.1 in India |
| Market Share in Home Loan Segment among ASCB | 33.09% |
| YoY Growth in Home Loans | 14.07% |
| New Customers who Availed Home Loans | 3.58+ Lakh |
Maintaining NPA at Minimal Level
Proactive monitoring and consistent engagement with customers have enabled SBI to maintain Non-Performing Assets (NPA) in home loans at a minimal level (only 0.69% as of 31st March 2023). The Bank has outpaced industry growth, capturing a market share of 21.77% industry-wide as of 30th September 2022, and 33.09% among All Scheduled Commercial Banks (ASCB) as of 31st March 2023.
Pioneering Initiatives and Partnerships
SBI holds the unique distinction of being the only commercial bank nominated as the Central Nodal Agency (CNA) by the Ministry of Housing and Urban Affairs (MOHUA). As the CNA for the PMAY-CLSS scheme, the bank processed 12,204 subsidy claims amounting to INR 255 Crore in FY2023. To further extend its reach to the underserved population, SBI has also signed MOUs with 5 housing finance companies for co-lending.
Steady Growth of Home Loan Portfolio
SBI’s home loan portfolio has shown consistent growth over the years. From INR 4.00 Trillion in FY2019, it increased to INR 6.41 Trillion in FY2023, demonstrating the Bank’s commitment to meet the evolving needs of its customers and the booming real estate market.
Home Loans as a Priority Sector
There are a number of reasons why the Govt of India considers home loans to be a priority. First, home ownership is seen as a key to social and economic development. Homeowners are more likely to be financially stable and have a stake in their community. Second, home loans can help to stimulate the economy. When people take out home loans, they are essentially borrowing money to invest in their future. This money can then be used to build homes, which creates jobs and spurs economic growth.
The GoI’s focus on home loans is likely to continue in the years to come. The government sees home ownership as a key to social and economic development, and home loans are a key way to make home ownership more accessible to Indian citizens.
If you are considering buying a home, a home loan may be a good option for you. However, it is important to shop around and compare interest rates and terms from different lenders before you decide which loan is right for you.
4 benefits of Home loans
- You can build equity in your home over time.
- You can deduct the interest on your home loan from your taxable income.
- You can get a fixed interest rate for the life of your loan, which can help you budget your finances.
- Home loans are typically easier to get than other types of loans, such as personal loans or credit cards.
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