State Bank of India (SBI) is eyeing an ambitious growth in its home loan book after having achieved the milestone of Rs 5 lakh crore of such loans. The country’s largest lender is looking to double this number to Rs 10 lakh crore in five years.

While the bank had entered the home loan segment in 2004, its real estate and housing business unit (REHBU) had clocked Rs 89,000 crore in assets under management (AUM) in 2011. Since then, the unit has grown five times in the last 10 years to now touch Rs 5 lakh crore.

SBI became the market leader in the home loan segment in 2013-14.

Despite a massive setback to the real estate sector triggered by the pandemic-induced lockdown, the home loan vertical registered strong growth even in December 2020 with the highest sourcing, sanctions, disbursements and growth. The bank is now targeting a home loan AUM of Rs 7 lakh crore by 2023-24.

Bank of India

Transmission of policy rates has hit the net interest income of Bank of India which shrunk 9.23 per cent during the October-December quarter of 2020-21 to Rs 3,739 crore from Rs 4,119 crore in the year-ago period.

However, lower provisioning for bad loans helped the bank’s bottomline to jump five-fold to Rs 526 crore against Rs 106 crore a year ago.

“We passed on about 60 basis points as policy rate transmission, while we passed on only 38 basis points in weighted deposit rates. Because deposit repricing takes longer, that affected the net interest income,” said A.K. Das, MD and CEO of Bank of India.