Country's largest lender, State Bank of India's Bengal circle targets to grow its home loan portfolio by 15-20 per cent in next financial year.
The Bengal circle, which had total home loan portfolio of Rs 6500 crore in 2011-12 and the bank has added Rs 1200 crore up to February 2013.
According to Mr. Sujit Guha, Deputy General Manager, Personal Banking, SBI-Bengal Circle, the growth will be driven by the positive measures supporting first-time home buyers, announced in the Union Budget last week.
With a view to increase home loan demand, the Union Finance Minister provided an additional tax deduction on interest of up to Rs 1 lakh on a loan of up to 25 lakh for first-time buyers during 2013-14.
"Our home loan portfolio has grown by about 10 per cent up to February this year. We expect to achieve 15-20 per cent growth next year," said Mr. Guha said at a press conference.
Mr. Guha said that SBI Bengal Circle has increased its sales force and improved its processing cell to meet up with the rising demand. The bank has also approved nearly 140 residential projects which would in turn shore up its home loan portfolio.