State Bank of India (SBI), the largest home loan lender in India was able to maintain a bigger retail home loan portfolio than close rival Housing Development Finance Corporation (HDFC) last 2010-11 fiscal.
In terms of year-on-year growth, HDFC ran ahead. At the end of March 2011, State Bank of India’s retail home loan portfolio stood at Rs 86,769 crore, up 22 per cent from a year ago. Same time HDFC’s was up 27% at Rs 85,649 crore.
The Indian home loan market, such, is seeing a slowdown because of interest rate hike. If State Bank of India has raised interest rates. This will affect its portfolio.
Currently, State Bank of India and HDFC have priced their home loans at the same level. Housing loans up to Rs 30 lacks are charged a floating rate interest of 10.25 per cent per year, loans above Rs 30 lakh and up to Rs 75 lakh at 10.50 per cent per year and loans above Rs 75 lakh at 11 per cent per year.
Mr. Suresh Sadagopan, Ladder 7 Financial Advisory Services said,'' HDCF will soon catch up with SBI in retail home loan portfolio unless the latter prices its loans cheaper.State Bank of India might have a higher reach, but look at the paper work involved in taking a home loan from them. They got a higher portfolio only because of their teaser scheme.
State Bank of India has discontinued the teaser scheme beginning this (May) month. The highly successful scheme helped State Bank of India.
At the end of December 31, 2010, the retail home loan portfolio stood at Rs 82,376 crore for State Bank of India, Nearly 11%t higher than HDFC’s Rs 74,155 crore.
In terms of year-on-year growth, HDFC ran ahead. At the end of March 2011, State Bank of India’s retail home loan portfolio stood at Rs 86,769 crore, up 22 per cent from a year ago. Same time HDFC’s was up 27% at Rs 85,649 crore.
The Indian home loan market, such, is seeing a slowdown because of interest rate hike. If State Bank of India has raised interest rates. This will affect its portfolio.
Currently, State Bank of India and HDFC have priced their home loans at the same level. Housing loans up to Rs 30 lacks are charged a floating rate interest of 10.25 per cent per year, loans above Rs 30 lakh and up to Rs 75 lakh at 10.50 per cent per year and loans above Rs 75 lakh at 11 per cent per year.
Mr. Suresh Sadagopan, Ladder 7 Financial Advisory Services said,'' HDCF will soon catch up with SBI in retail home loan portfolio unless the latter prices its loans cheaper.State Bank of India might have a higher reach, but look at the paper work involved in taking a home loan from them. They got a higher portfolio only because of their teaser scheme.
State Bank of India has discontinued the teaser scheme beginning this (May) month. The highly successful scheme helped State Bank of India.
At the end of December 31, 2010, the retail home loan portfolio stood at Rs 82,376 crore for State Bank of India, Nearly 11%t higher than HDFC’s Rs 74,155 crore.
Plz put this type of Articles in 'Comparison Table' STYLE...
ReplyDelete-Vijay Sekar
Yes the State Bank of India is great and one of the most greatly known banks overall. Home Loan may be guaranteed through the SBI,However all the procedures and policies should be known at least to fulfill the interest rates
ReplyDeleteGreetings! Very helpful advice within this article!
ReplyDeleteIt's the little changes that make the most significant changes.
Many thanks for sharing!
my webpage official source [maridajedigital.com]
Greetings! Very useful advice within this article!
ReplyDeleteIt's the little changes that produce the biggest changes.
Thanks a lot for sharing!
My site Moukhtar Abliazov (change.org)
The home loan race between the country's two largest lenders continues with both SBI and HDFC cutting their home loan interest rates given their improved liquidity. This comes at a time when the previously sluggish real estate sector is regaining momentum due to increased investor confidence from positive goverment signals. Real estate prices have fallen to more attractive levels. This alonwith higher rentals has encourged more sales in the housing sector. With the decrease in home loan rates by the market leaders SBI and HDFC, other banks are bound to follow suit.
ReplyDeleteSBI had a good growth in its home loan portfolio with a 15.5% increase from last year. HDFC also displayed good growth with a 14.2% increase from last year. For both lenders, it is the 'upto Rs.30 lakhs' category that has spurned interest in borrowers.
During FY13-14, SBI recorded maximum growth of over Rs.20,000 crores thereby firmly securing its leadership in the housing finance sector. This trend continues in FY14-15 as well with HDFC close on SBI's heels.