State Bank of India’s Bengal Circle aims to grow its home loan portfolio by 15-20 per cent in 2013-14.
The Circle, which had total outstanding of Rs 6,500 crore in 2011-12 under its home loan portfolio, has added Rs 1,200 crore up to February 2013.
According to Sujit Guha, Deputy General Manager, Personal Banking, Bengal Circle, the growth will be driven by the positive measures supporting first-time home buyers, announced in the Union Budget last week.
With a view to spurring home loan demand, the Union Finance Minister provided an additional tax deduction on interest of up to Rs 1 lakh on a loan of up to 25 lakh for first-time buyers during 2013-14.
“Our home loan portfolio has grown by about 10 per cent up to February this year. We expect to achieve 15-20 per cent growth next year,” Guha said at a press conference to announce the setting up of e-corners here on Tuesday.
SBI Bengal Circle, Guha said, has increased its sales force and strengthened its processing cell to tap the rising demand. The bank has also approved nearly 140 residential projects which would in turn shore up its home loan portfolio.
Total business has grown by about 13 per cent to Rs 113,000 crore till February this year. The bank aims to achieve a business of Rs 115,000 crore by March 2013, said Sunil Srivastava, Chief General Manager, Bengal Circle. “While deposits have seen a reasonably good growth, credit has not grown too well. Non-performing assets remain a concern,” Srivastava said.
E-corner
The e-corners are equipped with self service kiosks, cash deposit and coin vending machines, as well as ATMs to provide 24X7 banking services to customers. The self-service kiosks enable customers to pay bills, reprint passbooks, transfer funds and conduct several other banking transactions.
Bengal Circle, which has five e-corners at present, plans to add another 25 by the end of this month.
“Currently, these e-corners are located in the vicinity of branches (on-site), but we are also exploring the possibility of setting up such centres in offsite locations such as malls ,” said Amit Banerjee, Deputy General Manager, Alternate Channels, SBI Bengal Circle.