One of the largest private sector lender HDFC bank declared that its home loan book reached Rs. 6.84 lakh crore in the December quarter, closing the gap with its public sector rival State Bank of India. The largest public sector bank SBI has a home loan book of Rs. 6.94 lakh crore.
When SBI's book reached the Rs. 5 lakh crore barrier in February 2021, it surpassed HDFC in terms of home loan assets, holding a 23.5 percent market share compared to HDFC's 17 percent.
Prior to the merger, HDFC Bank’s parent company, HDFC, had been the market leader for decades in this segment. In the December quarter of FY19, SBI’s home loan book grew 13.6% year-on-year to Rs.6,94,000 crore, and grew 3.22% sequentially to Rs. 6,72,000 crore.
Moreover, HDFC Bank added 3.6% sequentially to its home loan AUM to reach Rs. 6.84 lakh crore. Annualized comparisons are not feasible because the merger with HDFC went into effect in July 2023.
According to the March 2023 balance sheet, HDFC Bank after the merger reemerged to be the leader of the home loan market with a book of Rs. 7.3 lakh crore compared to SBI's Rs. 6.4 lakh crore. Out Of this HDFC's home loan portfolio was Rs. 6.25 lakh crore and HDFC Bank's portfolio reads Rs. 1.02 lakh crore.
Arvind Kapil, head of home loans and mortgages at HDFC Bank, told reporters that bank incresed 20 percent of the home loan in December which grew faster with 3.6 percent sequential growth, taking its total AUM past the Rs 6.84 lakh crore level.
He quoted, Our home loan book at Rs. 6.84 lakh crore today contributes 30 per cent of our balance sheet of over Rs. 25 lakh crore. More than 20 percent of incremental market growth came from us during the past quarter which on a sequential basis clipped at 3.6 percent which was fastest among the home loan players."
SBI's balance sheet jumped to Rs. 35.84 lakh crore, growing 14.38 per cent on year from Rs. 31.33 lakh crore.
During the last August, chairman Dinesh khara told that SBI was and will be the largest lender of home loan, as bank has reported a 13.47 per cent growth in the home loan book at Rs. 6.53 lakh in the first quarter of FY24.
The CASA deposits of the bank grew by 2.2 percent quarter on quarter (Q-o-Q) to Rs 8.35 trillion in the third quarter (Q3) of the current financial year (FY24) and the CASA ratio inched up to 37.7 per cent from 37.6 per cent in Q2 FY24.
Kapil also added that, the bank also plans to launch Home Refurbishment Loans in mid-March 2024 and a Home Saver Product by April 2024. It will convert all erstwhile HDFC’s service centers to branches in a phased manner and its entire mortgage team will also become relationship managers.
He quoted, "We have a high retention rate of our employees from HDFC Ltd, post the merger."
HDFC Bank started to cross-sell its products through the service centers from February 1, 2024. As part of enhancing the cross-sell strategy, home loan customers can avail consumer durable loans, credit cards wealth advisory product, unsecured loans and home refurbishment loans.
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