The country's largest bank, State Bank of India, has aimed for 20 percent growth in home loans segment this fiscal. Talking about the bank's growth targets, the Deputy Managing Director and Group Executive of SBI, Mr. Pradeep Kumar said that the bank has already cut interest rates in the said segment. The credit offtake in home loans segment is expected to start in the last six months on the year.
It is to be noted that the bank's growth plans com at a time when the banking sector is experiencing a slowdown in the home loans segment.
It is reported that prior to this announcement, in the beginning of the financial year, SBI was targeting a growth in housing advances to the tune of 25 percent. But, it has brought down its expectations due to the bad economic conditions in the country.
SBI's housing loans portfolio is worth 1.05 lakh crore with a customer base of 17 percent for individual home loans. As for the bank's earnings from treasury, Mr. Kumar said that the bank wants to maintain the previous quarter's level in this quarter too. He added that the bank's profitability through treasury income was rather low as compared through other income sources.