Mere paas scale hai: SBI to bank rivals

KOLKATA: ICICI Bank and Housing Development Finance Corporation may have lowered home loan rates to match State Bank of India’s, but the country’s largest bank is stepping on the gas to stay ahead in the game and remain the top mortgage company.

Besides branch-led marketing push through the widest network of more than 22,000 branches, SBI is also engaging its retired employees to promote home loans, a senior executive said.

SBICAP Securities, a wholly-owned subsidiary of SBI Capital Markets, also sells home loans.



“We re tying up with builders and offering them construction finance on easier terms for affordable housing projects.

This, in turn, helps marketing of home loans,” SBI chief general manager for Kolkata circle Partha Pratim Sengupta said at an event in Kolkata.

SBI is giving up to 35 basis points concession on loans for construction to builders of the affordable housing segment.

One basis point is 0.01 percentage point.

SBI announced a reduction of home loan rates last week which was followed up by its rivals ICICI Bank and HDFC as they are all trying to take advantage of the government’s push towards affordable housing.

Women borrowers get home loans at 8.35 per cent for up to Rs 30 lakh, while other salaried borrowers get loans at 8.40 per cent a year from these three lenders. The government envisages housing for all citizens by 2022 which is the year India completes 75 years of Independence.

“We are pushing home aggressively - through branches as well as through our marketing associates.

It’s a priority area for us,” said Prasanna Kumar Mishra, SBI’s deputy general manager for home loan vertical.