SBI home loans grow by Rs 3000 crores per month,says Pratip Chaudhuryhttps://indianexpress.com/article/news-archive/web/sbi-home-loans-grow-by-rs-3000-crores-per-month-says-pratip-chaudhury/

SBI home loans grow by Rs 3000 crores per month,says Pratip Chaudhury

State Bank is expecting a growth of about 30 per cent in home loans.

State Bank of India is expecting a growth of about 30 per cent in home loans after it brought down home loan rates to 9.95 per cent according to Chairman,Pratip Chaudhury.

Addressing a press conference during his visit to Chandigarh,Chaudhury said that “the SBI is getting a big leg up in home loans ever since we have brought our home loan rates to 9.95% and there is tremendous consumer interest”. He said that “our outstanding loan book is around 1.19 lakh crore and is growing by Rs 3000 crore per month and we expect around 25-30% growth in home loans.

He said that the significant part of this Rs 3000 crore per month growth in home loans is about Rs 700 crores that is coming from re-finance of loans as customers from all other banks are coming to SBI for re-finance or shifting of their home loans. “Indeed at 9.95 per cent rate of interest for home loans,we are the cheapest in the industry” he said.

In reply to a question,the SBI Chairman agreed that there have been quite a few instances of ATM cloning but said that the SBI was compensating the persons who are victims of the money they had lost. He said that it was not possible to depute guards at all the 45,000 ATMs including about 25 per cent in semi-urban areas. Nevertheless,we are exploiting technology to find a solution to the problem. SMS alerts are being sent immediately whenever there is a withdrawl and CCTV cameras had been set up at all ATMs. In reply to another question,Chaudhury said that there was the problem of counterfeit currency but it was not that grave and superior technology was taking care of that. He said that most counterfeit notes came via Bangladesh and Nepal border and “technology can take care of that.”

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About CRR cut,he said that at times,it handicaps the bank and does not serve any economic purpose. The Reserve Bank of India is the custodian of country’s economy and it had brought down CRR from 6 per cent to 4 per cent two years back. CRR is locked up in the vault and not ploughed back into the economy. CRR refers to that portion of deposits that a bank has to mandatorily keep with RBI without earning any interest as part of prudential measures. Along with CRR,banks are required to invest a portion of their deposits in government securities as part of their statutory liquidity ratio (SLR) requirements. If the money released (by the CRR cut) goes for production,then production across sectors will increase and bring down prices.

Earlier,he presented a cheque of Rs 1.00 crore to Chairperson,University Business School in the presence of Vice-Chancellor for construction of a state-of-the-art auditorium in the proposed building of UBS. He also handed over keys of a school bus to Ms Promila,Secretary,Society for rehabilitation of Mentally Challenged Chandigarh and two ambulances equipped with ultra modern medical care units to Don Bosco Navjeevan Society and Rotary Cancer Detection and Welfare Society,Ambala Cantt.

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