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Shobha Kannan

Kolkata, Dec. 29 Kolkata-based banks expect growth in their home loan disbursements to be anywhere between 25 and 50 per cent during the rest of 2008-09. The optimism is based on the comprehensive home loan package announced by the banks recently, according to senior bank officials.

The reduction in interest rates on loans up to Rs 20 lakh and waiver of processing charges and prepayment penalty will boost the demand for loan, it is felt. However, high property prices might dampen the spirit to some extent, it is pointed out.

The Bengal Circle of State Bank of India expects 68 per cent growth in its home loan disbursals in 2008-09 at Rs 1,026 crore, against Rs 611 crore last year. The total home loan disbursements of the bank so far this year stands at Rs 494 crore. Speaking to newspersons here recently, Mr Jayant Kumar Sinha, Chief General Manager, Bengal Circle, SBI said, “The demand has not slackened, people only deferred their buying decision because of the high interest rates. Now with the comprehensive package we hope that there will be a good pick up in demand during the rest half of the year. Our home loans disbursements so far this year has been higher than that in the same period of last year (Rs 447 crore).”

United Bank of India expects a 50 per cent growth over its November figures in the home loan segment, according to Mr T.M. Bhasin, Executive Director, of the bank. The home loan portfolio of the bank as on November 2008 was at Rs 1,486 crore and the bank plans to take it up to Rs 2,035 crore, Mr Bhasin said.

“We expect this comprehensive package to boost customer sentiment, which will in turn lead to good pick up in demand but what is needed is some correction in property prices,” Mr Bhasin said.

UCO Bank, according to its Chairman and Managing Director Mr S.K. Goel, is to register a growth of about 20 per cent in its home loan segment during the rest half of this year.

More Stories on : Housing Finance | West Bengal

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