State Bank of India (SBI) targets 15-20% growth in home loans in Bengal Circle.
Bengal Circle of State Bank of India (SBI) aims to grow its home loan portfolio by 15-20 per cent in 2013-14. The circle, consist of West Bengal, Sikkim and Andaman and Nicobar Island, had total outstanding of Rs 6,500 crore in 2011-12 under its home loan portfolio, has added Rs 1,200 crore up to February 2013.
According to Sujit Guha, Deputy General Manager (DGM), Personal Banking, Bengal Circle, the growth will be driven by the positive measures supporting first-time home buyers, announced in the Union Budget last week.
With a view to spurring home loan demand, the Union Finance Minister provided an additional tax deduction on interest of up to Rs 1 lakh on a loan of up to 25 lakh for first-time buyers during 2013-14.
Bengal Circle of State Bank of India has increased its sales force and strengthened its processing cell to tap the rising demand. The bank has also approved nearly 140 residential projects which would in turn shore up its home loan portfolio.
Total business has grown by about 13 per cent to Rs 113,000 crore till February this year. The bank aims to achieve a business of Rs 115,000 crore by March 2013, said Chief General Manager (CGM) of Bengal Circle Mr. Sunil Srivastava said. “While deposits have seen a reasonably good growth, credit has not grown too well. Non-performing assets remain a concern,” Srivastava said.