Real estate news on SBI expects home loan portfolio to grow by 18% in FY'16

Property loans/ Home loans, State Bank of India (SBI), Mumbai, Home Loan
Posted on Apr 16, 2015

MUMBAI: The country's largest lender State Bank of IndiaBSE 0.50 % is expecting its home loan portfolio to grow by 18% and does not foresee any rate wars even as leading lenders rushed to align their home loan rates with that of the leader.

"We are expecting a growth of 18 per cent in current fiscal against 14.5 per cent in the recently concluded 2014-15 " said B Sriram, Managing Director and Group Executive of National Banking, State Bank of India, at the sidelines of a launch event of new ATM machines by manufacturer NCR Corporation event. "We don't foresee any rate wars, all the lenders are competing with similar rates in similar bands. It's good for customers, as they have a larger choice now" he added. Mr Sriram however hin ..

Home loans have been a main driver of loan book of the entire banking sector in FY'15 which grew by nearly 15% compared to an overall growth of around 12% during the year. State Bank of India expects its overall loan book to grow at 14 to 15% in FY'16 compared to 10 to 11% growth in FY'15.

SBI is also planning to strengthen its ATM network this year. "We plan to have about 4,000 recyclers, including 2,000 cash dispensing machines and cash deposit machines " Sriram said.

Recyclers lower the cash handling costs for a bank. NCR Corporation new ATM machine are expected to be cost efficient as well as energy saving. " These machines can save operating costs by upto 40% " said said Navroze Dastur, Managing Director, NCR India.

Besides being energy efficient with additional security features, its managing costs is also lower because of centrally managed enterprise software based on cloud computing Mr Dastur said. NCR corporation meets the entire local demand by manufacturing them within India and also exports about 40% of the produce to Asia-Pacific countries among others.

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