State Bank of India (SBI) has crossed the Rs 5 lakh crore mark in its home loan business. Now, the bank has set a target to achieve a home loan lending target of Rs 7 lakh crore by FY 2024.
The real estate and housing business unit (REHBU)of SBI has grown five times in the last 10 years with an AUM of Rs 89,000 crore in 2011 to Rs 5 lakh crore in 2021. The state-run bank said that despite massive setbacks triggered by pandemic-induced lockdown, the real estate and housing business unit witnessed growth. The bank stated in December 2020, there was ‘spectacular growth in home loans’ with the highest sourcing, sanctions, disbursements, and growth that the bank had ever registered. SBI’s home loan market share has been steadily increasing. SBI forayed into the home loan business in 2004 with a total portfolio of Rs 17,000 crore. A separate 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.
Dinesh Khara, Chairman, SBI said, “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. We are 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.”
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 202