Home loan market is again rising high. Credit offtake in this sector has taken a giant jump in the final 2 quarters of the FY’10 as against to the 1st 2 for leading players- SBI and HDFC.
HDFC is anticipating a 20% increase in the final quarter of the previous fiscal while SBI anticipates 30% increase from the previous 2 quarters each. It is quite likely that SBI would top the home loan sector this fiscal as well.
Renu Sud Karnad, managing director, HDFC, said, “During the last two quarters, the conversion rate has gone up and higher number of queries are getting converted to deals”.
While there is a variation in quantum of loans for metros and non metro cities, the average quantum of HDFC Bank is Rs. 16 lakh. The loan size for HDFC in Tier I cities is Rs. 23 lakh and Rs. 12 lakh for Tier II cities.
But the quantum for SBI is more diverse with about Rs 25 lakh for Mumbai, and about Rs 17 lakh for other metros and in remote places it can be Rs 3 lakh.
Loan disbursals for HDFC up to December 2009 was Rs 33,527 crore as compared to Rs 27,211 crore for the equivalent period last year, representing an increase of 23%.
HDFC holds 40% of the market share in home loan segment while it is around 20% -25% for SBI.
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