The bank, which cut its home loan rates yesterday by up to 0.60 percent, was earlier targeting a 25 per cent growth in its home loan book. Such loans are expected to grow by only 15-20 percent, the bank said.
"There has been a drop in home registrations and we want to be realistic and now expect that the home loan segment will grow by only 15-20 percent," SBI deputy managing director and chief credit and risk officer Atanu Sen told reporters.
He said the home loan book has grown by 10 percent in the first quarter, but stressed that the bank has not lost its market share in the segment.
SBI has maintained its overall home loan market share at 16.9 percent in the segment even during this period, Sen said.
Within the state-run banks alone, its share is at 26 percent, Sen said, adding the total home loan book currently stands at Rs 1,05,000 crore.
The bank cut its home and auto loan rates yesterday after the RBI announced reduction in the statutory liquidity ratio, or the percentage of deposits to be parked in government bonds. This releases an additional liquidity of Rs 10,000 crore for the bank, Sen said.
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On the benefits of this rate cut to existing borrowers, Sen said they can migrate to the new rates by paying a processing fee of 1 percent of their outstanding loan amount.
The reduction in auto loan rates was up to 0.50 percent, Sen said, adding the bank's total auto loan book stood at Rs 19,000 crore. (MORE)