Friday, March 19, 2010

SBI is the Biggest Player in the Home Loan Sector


With the teaser rate tenure coming to an end, it is time to gather the market share earned by the different players during the reign. Of the total amount of Rs. 45000 crore lent as cheap loan, SBI seems to have gathered the biggest chunk of the pie by sanctioning a colossal 67% of the total loan amount offered during 2009. The trump card used by the banking sector this year has been the teaser home loan rates. SBI has lent a prodigious amount of Rs. 30,000 crore this year as a part of the teaser loan regime. HDFC has secured a distant second position with a total sanction of Rs. 9,000 to Rs. 9,600 crore under the home loan segment.
Teaser loans from other banks however did not receive such good response. While Bank of India could sanction only Rs. 289 crore in a time frame of seven months, Punjab National Bank, IDBI Bank and Union Bank disbursed nearly Rs. 1,050 crore, Rs. 1,500 crore and Rs. 1,600 crore respectively over a time span of six months. Many banks had stopped the teaser rate regime after the RBI announced a hike in the cash reserve ratio by 75 basis points. Despite the varied response received by various banks on sanctions, all banks seem to be happy by the results of teaser rates. Manju Srivatsa, President - Retail Banking, Axis Bank, says, “From what we had been doing before we launched fixed rate scheme, we were able to do 40% more sanctions and 35% more number of loans which is a good number.”

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