Money & Banking

Healthy growth in home loans, may consider extending festive offer: Kotak Mahindra Bank

Our Bureau Mumbai | Updated on October 27, 2021

The offer is scheduled to end on November 8

Private sector lender Kotak Mahindra Bank has seen robust growth in home loan demand and said it may consider extending the festive season rates depending on the interest rates and demand.

The bank had with effect from September 10 reduced home loan rates by 15 basis points to 6.5 per cent per annum. The offer is scheduled to end on November 8.

“Overall, growth has been healthy in the home loan segment. If the demand momentum continues and depending on how the interest rates behave, we may consider extending it,” said Dipak Gupta, Joint Managing Director, Kotak Mahindra Bank on Tuesday in a media call after the lender’s second quarter results.

Gupta said a third of the portfolio is from balance transfer.

“It is difficult to say how much is coming from rate cut and how much is organic. In general, the demand for homes and home loans have gone up. There is an element of balance transfer also in this, which probably is driven by 6.5 per cent interest rate,” he said.

The bank’s home loans and loan against property segment grew by 28.8 per cent to ₹61,479 crore in the second quarter of the fiscal from ₹47,732 crore a year ago. On a sequential basis, it grew by 10.5 per cent from ₹55,623 crore as on June 30, 2021.

Overall, the bank’s customer assets, which includes advances and credit substitutes, increased by 17 per cent to ₹2,56,353 crore as at September 30, 2021 from ₹2,18,790 crore as at September 30, 2020.

Published on October 27, 2021

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