Tuesday, August 16th, 2022 19:02:14

Why SBI Home Loans May Turn More Lucrative

Updated: September 4, 2015 6:50 am

State Bank of India (SBI) sought regulatory approval from the Reserve Bank of India (RBI) to provide home loans below base rate to kick-start demand, but the governor said he was more interested in seeing home prices fall to push the demand rather than make funding cheap. Chairman Arundhati Bhattacharya in a discussion with the RBI Governor said SBI could be allowed to lend below base for a limited period for ready stock of houses. SBI is the largest provider of home loans with almost 20 per cent market share. Governor Rajan said, “In some parts of the country there is excess stock, I think we need the market to clear and with growing unsold stock we need to figure out a way of doing it, some of it may be by making loans easier but we also don’t want to create a situation where prices stay high at a level. But I think we are very open to suggestion.”

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