The Hindu : Business : Rs. 250 cr. SBI loans in property fair

Online edition of India's National Newspaper
Friday, Nov 11, 2005

Business

Business

Rs. 250 cr. SBI loans in property fair

Special Correspondent

The circle has a target of Rs. 650 cr.

KOLKATA: State Bank of India (Bengal circle) has created a record by sanctioning about Rs. 250 crore of housing loans within three days, according to an official spokesman.

The amount was sanctioned during a three-day property fair, which concluded here on Monday, the spokesman told The Hindu, adding that the figure was an early estimate. The response to the fair, he said, exceeded expectations since SBI had aimed only at a sanction level of about Rs. 150 crore.

The circle is chasing a target of Rs. 650 crore for the current fiscal against Rs. 450 crore sanctioned in 2004-05.

SBI personal banking department officials were optimistic of maturing at least 70 per cent of these on-the-spot sanctions into disbursements.

Sources said that SBI (Bengal circle) was aiming to increase its market share in housing loans from about 40 per cent to 50 per cent. This it hoped to achieve through faster sanctions and offering monetary benefits like the facility of daily reducible balance, which few other banks provide.

To expand its housing loan portfolio, the bank has started exploring tie-up arrangements with various government undertakings as well as private sector companies for extending loans to their employees. A memorandum of understanding (MoU) was signed in this regard with the West Bengal Government for providing loans at seven per cent for the employees.

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