Karnataka is the fastest growing market for home loans in the entire country for State Bank of India (SBI), and Bengaluru accounts for a lion’s share of this business.
SBI’s home loan portfolio in Karnataka is ₹69,000 crore in the current fiscal with Bengaluru accounting for ₹50,000 crore, S. Radhakrishan, General Manager, SBI told The Hindu on January 21.
“Our home loan business is growing at 14%. We are expecting the growth rate to climb to our target of 17%,” he added.
According to Sandeep Bhatnagar, GM, the bank has been disbursing home loans amounting to ₹2,000 crore every month in Karnataka. In the first three quarters of the fiscal, the bank’s home loan portfolio has grown by ₹7,300 crore, and by the end of the fiscal, it is expected to cross 10,000 crore.
He said luxury segment has been growing at 100% and the ultra-luxury segment at 113%.
“Post-covid, there is a growing trend that families want to stay together, or in close vicinity. Therefore, many who can afford are looking at large apartments or villas,’‘ he said.
SBI is currently holding a home loan utsav at its regional head office on St. Marks Road in Bengaluru. Around 40 builders are showcasing their home and villa options at the mela where the bank is offering an interest rate concession for spot booking and 100% waiver on the processing fee.
“We believe this edition of our home loan utsav will give a boost to the home loan market in Bengaluru. This is also the right time to invest in a house,’‘ Nand Kishore, Chief General Manager, Bengaluru circle, told mediapersons.
The two-day SBI Home Loan Utsav will conclude on January 22.