India’s largest lender SBI plans to double its home loan portfolio in five years

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A man checks his cell phone in front of the State Bank of India (SBI) branch in Kolkata, February 9, 2018. REUTERS / Rupak De Chowdhuri / File Photo

MUMBAI (Reuters) – India’s largest lender, State Bank of India, plans to double its home loan portfolio to 10 trillion rupees ($ 137 billion) over the next five years, after exceeding 5 trillion in January said the bank’s top manager.

“Home loans are currently the largest business area of ​​the bank and will continue to be an important growth driver,” said SBI chairman Dinesh Kumar Khara in a media conference.

The lender’s home loan book has increased fivefold over the past decade from Rs 86,000 in 2011.

At a time when several other lenders were seeing stress in their retail loan portfolios, SBI has dismissed such concerns and emphasized its plans to focus on the sector. The current customer base with a focus on white-collar workers has managed to keep non-performing loans in the segment in check, said Khara.

Gross bad loans in the home loan division account for 0.67% of the total loan book. With a stronger focus on home loans, the bank intends to increase its share of private customer business in the total loan book from the current 39% to 45% in one year.

($ 1 = 72.8310 Indian rupees)

Reporting by Nupur Anand. Editing by Mark Potter

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