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Banks registering low growth rate compared to HFCs

Banks registering low growth rate compared to HFCs

Apnaloan.com Research Bureau

03 May 2008

Unlike the housing finance companies such as HDFC which have been showing good business, banks are witnessing a slowdown in the housing loans segment. The banking industry attributes this slowdown in growth due to increasinginterest rates on loans.

ICICI bank disbursed retails loans of Rs. 14,000 crore in 2007-08 and though the exact figures are not known, bank officials say that of the loan disbursed, home loans would be a substantial chunk of retail loans.

State Bank of India (SBI) saw a growth of 18.7 per cent in home loans for the year 2007-8, compared to the growth rate of 18 per cent in 2006-07.