India's largest public sector lender, State Bank of India has laid an ambition of pumping its home loan portfolio up to Rs 2 lakh crore by the end of March 31, 2015.
SBI's home loan portfolio has increased by 73.86 per cent against Rs. 62,338 crore on September 30, 2009.
A senior bank official said, "We are hoping to have a home loan portfolio worth Rs 2 lakh crore by March 31, 2015. As on September 30, it stands at Rs 1, 08,381 crore".
The banks will now target Tier-II and Tier-III cities for the growth of home loan portfolio and along with this the bank will also be increasing its retail assets central processing centres (RACPC), according to as SBI official.
The official said that the increase in RACPCs will aid the banks to give more loans. He said, "Growth in cities like Mumbai may be slow but we are seeing growth in other cities. This financial year, we opened 23 additional RACPCs so far, which took the total number to 121 centres. We may add another 10-12 centres during the remaining part of the financial year".
SBI's controversial ‘teaser loans' played a major role in growth of the home loan portfolio.
According to Mr. Vaibhav Agarwal, vice-president (research) at Angel Broking, SBI can afford to give home loans at competitive interest rates as it possesses lower cost of funds and the bank also has wider branch network.