SBI achieves Rs. 5 lakh crore in

 SBI achieves Rs. 5 lakh crore in Home loan business

·         The Bank projects Rs. 7 lac crore lending in the home loan segment by FY 2024

·         The Home loan portfolio of the Bank has grown by 5 times in the last decade

·         On average, the Bank on-boards 1000 home loan customers every day

·         The Bank offers home loans starting at 6.80% per annum

·         Missed call facility for home loan inquiries

·         Rs. 2 lakh home loans sanctioned under PMAY

Maintaining its leadership in the home loan segment intact, the State Bank of India (SBI) has reached another landmark by crossing the Rs. 5 trillion (5 Lakh crore) mark in its home loan business. The bank has set its sight on achieving a home loan AUM of Rs. 7 trillion by FY 2024.

The Real Estate and Housing Business unit of SBI has grown 5 times in the last 10 years with an AUM of Rs. 89000 crore in 2011 to Rs. 5 trillion in 2021. Despite a massive setback to the real estate sector triggered by pandemic-induced lockdown, the REHBU vertical registered unparalleled growth in the home loan business. SBI witnessed spectacular growth in Home loans in December 2020 with the highest sourcing, sanctions, disbursements, and growth that the bank had ever registered. The Bank has also launched a new facility for new home loan customers who can get all information on home loans by giving a missed call on 7208933140.

Dinesh Khara, Chairman, SBI said, “It is a momentous achievement for State Bank of India. This extraordinary feat is a testament to customers’ continuous trust in the bank. We feel that combining technology with personalized service is the key in the current scenario. The bank is also working on various digital initiatives to improve the efficiencies in home loan delivery including a unique integrated platform Retail Loan Management System (RLMS) which will provide an end-to-end digital solution. We are also happy to express that SBI has become the market leader in home loans by adopting a focused approach and acknowledging it as a national priority. We have always treated home loans as a growth driver for the nation and not just as mere transactions. We, at SBI, will continue focusing on enhancing customer delight that will in-turn enable the bank to scale newer heights.”

SBI is making a continuous effort to make affordable housing conveniently accessible to customers with dreams of owning their desired home. The bank offers home loan customized to suit the requirement of individuals with home loans such as Regular Home Loan, SBI Privilege Home Loan for government employees, SBI Shaurya Home Loan for army and defense personnel, SBI MaxGain Home Loan, SBI Smart Home, Top-up Loan for existing customers, SBI NRI Home Loan, SBI FlexiPay Home Loan for a loan of the higher amount and SBI HerGhar Home Loan for women.

SBI is also the only bank designated by MoHUA (Ministry of Housing and Urban Development) as the Central Nodal Agency (CNA) for processing Pradhan Mantri Awas Yojana (PMAY) subsidy. To support Govt’s flagship program of ‘Housing for all by 2022’, SBI has been continuously extending home loans under PMAY and has sanctioned 1,94,582 home loans as of December 2020.

With interest starting as low as 6.80% per annum, SBI commands a market share of 34% in the home loan segment. On average, the bank onboards around 1000 home loan customers per day that signifies SBI’s commitment towards affordable housing. SBI has also completely waived the processing fee till March 2021for customers availing home loans in SBI approved projects. The Bank is also working on themes like focused development of the Home Loan business, refined analytics for boosting growth, easing home loan journey for customers, and post disbursal engagement with home loan customers.

Going forward, SBI is also looking at implementing AI, Cloud, Blockchain, machine learning which can play a pivotal role in propelling not only the home loan business of the bank but also other businesses. The bank is gearing up to initiate a co-lending model for home loans which will help boost SBI’s footprints in the unorganized sector. With the use of cutting-edge technology, a vast network of branches, dedicated to Central Processing Centers (CPCs) in 215 centers, bank’s digital and lifestyle platform, YONO, and other enablers, SBI has hit Rs. 5 trillion marks in the home loan business.

SBI is also continuously focusing on strengthening collaboration with builders so that it can offer more choices of homes to home buyers. The bank is consistently ingraining the latest technology into its operational and delivery platforms to make the home loan journey smoother for customers.

Having withstood all downturns, SBI’s home loan market share has been steadily increasing. Moreover, this segment has the lowest default rate indicating excellent asset quality and thereby contributing handsomely to the Bank’s income. SBI forayed into the home loan business in 2004 with a total portfolio of Rs. 17000 crore. A separate Real Estate and Housing Business Unit (REHBU) came into being in 2012 with a total portfolio of Rs. 1 lakh crore. SBI became the market leader in the home loan segment in FY 2014, and since then has continued to take rapid strides in this business segment culminating in the achievement of the Rs. 5 trillion milestones in January 2021.

SBI and Shapoorji Pallonji Real Estate sign MoU

 SBI and Shapoorji Pallonji Real Estate sign MoU
to offer seamless home buying experience

State Bank of India (SBI), India’s largest mortgage lender, and Shapoorji Pallonji Real Estate, one of India’s marquee builders, today signed a Memorandum of Understanding (MoU) to enable an improved and more seamless experience for homebuyers across India. As part of the agreement, which includes various co-promotional activities and outreach initiatives, customers of SBI and Shapoorji Pallonji Real Estate will be able to avail the benefits of faster processing of home loans and approvals along with other unique value add schemes.

The MoU was signed by Mr. Shreekant, head and Chief General Manager of Real Estate & Housing Business Unit (REHBU) vertical of State Bank of India, and Mr. Venkatesh Gopalkrishnan (CEO, Shapoorji Pallonji Real Estate).

Mr. Shreekant, CGM, REHBU, SBI said, “This collaboration with Shapoorji Pallonji Real Estate will create win-win business opportunities for all stakeholders. We sanction Home Loan in five days in all our approved projects, which is the key benefit for the customers apart from complete waiver of legal and valuation charges. Our tailor-made Home Loan products, dedicated Home Loan processing centers, door-step banking services, robust feet on the street, strong networks, usages of cutting-edge technology among others, have made us the preferred choice amongst Home Loan customers. Bank will roll out Retail Loan Management System (RLMS), a technological platform providing an end-to-end solution for Home Loans, as early as March 2021 that will further streamline the Home Loan acquiring and processing by significantly reducing turnaround time”.  

Mr. Venkatesh Gopalkrishnan, CEO, Shapoorji Pallonji Real Estate, said, “We are delighted to partner with State Bank of India to offer specially designed products to the customers serviced by both the companies. For our customers, it would mean more choice to avail innovative offerings, including attractive home loan rates and faster approvals while buying homes. The new tie-up will cover our new and existing housing projects across key markets.”

The Real Estate portfolio of the State bank Of India has surpassed Rs 5 trillion recently, which is the largest in the industry. The bank has a total Home Loan customers of a staggering 42 lakh. On average, SBI onboards more than 1000 Home Loan customers per day. The bank that commands a market share of 22% in the Home Loan business, offers Home Loan starting at as low as  6.80% p.a. which is one of the lowest in the market. Dedicated Central Processing Centres have been set up by the bank across the top 215 centers of the country that cater to the ever-rising demand of the customers besides expeditiously sanctioning Home Loans. SBI has the distinction of being the only bank, designated by MoHUA as the Central Nodal Agency (CNA) for processing PMAY subsidy. To support Govt’s flagship program of “Housing for all by 2022”, the Bank has been aggressively lending Home Loans under PMAY. The Bank has so far sanctioned 1,94,582 Home Loans under PMAY as on end of Dec 2020.