Dinesh Khara, the chairman of State Bank of India (SBI), stated on August 4 that the public sector bank has led the market for home loans and will continue to do so.
When questioned about his opinions on the mortgage market in the wake of HDFC’s withdrawal on July 1 as a result of its merger with HDFC Bank, Khara even claimed that SBI’s mortgage book was valued at more than ₹6.52 lakh crore as of the June quarter, up over 14 percent year over year.
Prior to the merger, HDFC Bank was not involved in the home loan market because it used to source and then sell a home loan account to its parent company, HDFC, for a charge. The bank had a tiny book of house loans when it merged with the parent.
As of March 31, 2023, analysts estimate that HDFC Bank’s total mortgage portfolio will be worth ₹7.3 lakh crore. However, despite the fact that the merger became complete on July 1 and HDFC shares were extinguished on July 13, the bank chose not to disclose the figures in the June quarter reporting. SBI’s book at that time was merely ₹6.4 lakh crore.
When SBI’s book surpassed the Rs 5 lakh crore threshold in February 2021, it overtook HDFC, the longtime market leader in home loan assets. SBI had a market share of 23.5 percent at the time, compared to HDFC’s 17 percent for house loans.
“We have been the largest,” Khara told PTI following the earnings release. “We are and will continue to have the largest home loan book.” SBI announced quarterly profits of 16,884 crore, the highest amount ever.
According to Khara, the SBI home loan book increased by 13.47 percent to ₹6,52,548 crore in Q1FY24, compared to ₹6,40,680 crore in Q4FY23 and from ₹5,75,075 lakh crore in Q1FY23.
In fact, we increased by more than 15% in July, and Khara predicted that growth would continue to increase, especially as the festival season drew near.
According to Khara, the bank set an internal goal in February 2021 to double its book to ₹10 lakh crore in the following five years and to ₹7 lakh crore by FY24.
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