State Bank of India (SBI) expects to double its home loan portfolio in the next five years to ₹10 lakh crore on the back of higher economic growth growth and demographic dividend.
India’s largest bank took about 10 years to grow its home loan portfolio from ₹89,000 crore in FY2011 to cross the ₹5 lakh crore mark now, according to Chairman Dinesh Kumar Khara.
He emphasised that delinquency in the home loan portfolio in terms of gross non-performing assets (GNPAs) is only 0.68 per cent of the portfolio. Khara said with the implementation of the retail loan management system, SBI will be in a position to crunch the average home loan turnaround time to 5 days from 12 days.
CS Setty, Managing Director, said 60 per cent of the existing customers had a credit score of 750 & above. Khara observed that the average home loan ticket size has gone up from ₹25 lakh two years ago to ₹31 lakh now, Khara added.
Of the ₹5 lakh crore home loan portfolio, almost 23 per cent is by way of balance-transfer, especially in metros, from other lenders, he said. Of the total home loan portfolio, ₹4.86 lakh crore is to the individual borrowers and the balance is towards builder financing.