Home loan portfolios in Q1 indicate no harm caused by Covid-19

Covid-19 has not deterred home purchasers, according to the first-quarter figures of home loan portfolios from major banks. A comparison of bank housing loan data for the first quarter reveals a significant increase ranging from 6% to around 14% when compared to the corresponding quarter in FY22. The home loan portfolio of State Bank of India increased by 11% to Rs 5,05,473 crore in the first quarter of the current fiscal year ended June 30, accounting for 23% of the bank's total domestic advances, up from Rs 4,55,443 crore the year before. SBI and other banks have seen a hike in home loan demands despite the Covid-19 pandemic. The house loan portfolio of Canara Bank grew 13.15% to Rs 65,136 crores during the same time period. The growth in the portfolio was only 10.6% in 2020. Punjab National Bank, which grew by 6.1%, is also in the same league. A senior SBI official explained that the bank employees braved the pandemic and that loan application processing and disbursement were not hampered. In the absence of increased corporate loan growth, a greater emphasis has been placed on retail loans, of which home loans make up a significant portion. Home loans are growing in line with the market, according to Sanjiv Chadha, Managing Director and CEO of Bank of Baroda. Home loans, along with gold and car loans, are seen as very safe for business during pandemic times, as per bankers. Analysts claim that home loan growth is expected to continue this year. Banks are also stepping up their efforts to keep the economy growing. SBI has increased its focus on residential mortgages. It announced a full waiver on processing fees until August 31 as part of its Monsoon Dhamaka offer. The processing fee was 0.40% prior to the offer. Other banks are preparing special offers for the upcoming festival season to entice customers. Image Source Also read: Housing sales notes 75% growth in H1 2021: CBRE South Asia