Small Business
CanBank aims to up home loan portfolio
Bangalore-based public sector lender, Canara Bank, is aiming to double its home loan portfolio to around Rs 17,500 crore by December 2010. The bank’s home loan portfolio stands at Rs 8,464 crore, little over 5 per cent of the total advances, as of December 2009, the bank’s executive director K L Jagadish Pai said. - Canara Bank Q3 profit zooms 50% to Rs 1,052.58 cr - Canara Bank increases authorised capital - Delhi bourse set to start mock trading next week - Canara Robeco AUM crosses Rs 10,000-cr mark - "Base rate affects only large borrowers, not banks" - Canara Bank to expand in UK “We had actually set a target to achieve at least 10 per cent of our loan portfolio from home loans by March-end 2010. But, it is not possible in the remaining two months and we intend to disburse another Rs 6,000 crore during the first three quarters of the next financial year-ending December 2010,” he told Business Standard after announcing the bank’s third quarter financial results. For year-ending March 2010, the bank has set a target of Rs 1,75,000 crore advances. He said the bank has performed better in home loan sector and achieved 27 per cent growth in the first three quarters of the present fiscal-ended December 2009 compared to the same period last year. The bank, in August 2009, had launched a scheme with 8 per cent interest rate for the first year and 9 per cent for the second year and 10 per cent for the remaining period of the loan for individual home loan customers. The campaign has been extended up to March 2010. “The real estate sector is reviving and people are coming back for loans. We are the bank with lowest exposure to real estate among our peers. Our exposure to commercial real estate is less than Rs 2,600 crore presently compared to Rs 2,900 crore at the beginning of the fiscal. We are looking at financing more and more Bangalore-based real estate companies so that we will get more individual accounts during this year,” Pai said. The bank is looking to increase housing loans, as there is a long gestational period. The sanctions may touch 10 per cent of the asset book of the bank, but in terms of disbursals it could be lesser, he said. In the next two months of the present fiscal, the bank aims to lend another Rs 500 crore, he said. He said the bank has increased the number of retail hubs to 37 across Tier-I, Tier-II and Tier-III cities in the country. “We are targeting 10 accounts per day for each retail hub,” he said. The bank will focus more on the individual home loan seekers than the commercial real estate sector. The ticket size of these loans will be Rs 15-20 lakh. The bank was not aggressive in the commercial real estate segment despite big demand for funds, he said adding that presently the total exposure stands around Rs 2,000 crore. “We are not bullish on commercial real estate like many other banks,” he said. The total sanctions of the bank presently stand at close to Rs 30,000 crore, he said adding that part of it will be disbursed over next 18 months.Wonga commented:
Such decision of Canara bank is really sounding great and ambitious. I hope they will get success in that as earlier they got it.
14.12.2011
Payday Loan commented:
The truth is that the real estate sector is reviving and people are coming back for loans.
10.01.2012
payday loans no credit check commented:
Nice information written about Canara bank home loans.I think they will achieve grate success while doing this.
16.03.2012