SBI Chairman on slowdown: Auto loans may have less demand, home loans see good growth

By: |
Updated: Sep 03, 2019 7:56 PM

Even as demand for auto loans sees a reduction, there is growth in home loans, a veteran banker said. A pick up is being witnessed in the affordable housing space, SBI Chairman Rajnish Kumar said.

Nearly all sectors are undergoing a slowdown, he said.

Even as demand for auto loans sees a reduction, there is growth in home loans, a veteran banker said. A pick up is being witnessed in the affordable housing space, SBI Chairman Rajnish Kumar told CNBC TV18 in an interview. The home prices have come down and inventory is getting cleared, he said. “For home loans, the growth is very good. SBI is still growing at 18 percent,” he added. Nearly all sectors are undergoing a slowdown, he said, adding that the slowdown in the auto sector needs a deeper analysis. There is no need to be bogged down by the ongoing economic turmoil as there is still time to correct the economic situation, he added. The government is making sincere efforts to boost growth, he noted. “…….Centre is fully aware of the situation and there is a sincere effort to correct the situation wherever they can intervene,” he also told CNBC TV18.

On digital, Rajnish Kumar said, “We believe that India, as far as the digital economy is concerned, it is almost at par with anyone else. Many systems have been built, for example, payment system is a very unique system.”

Also read: Start-up funding: Throw these terms at investors and get your funding pitch rejected

Meanwhile,  Deepak Parekh, Chairman of Housing Development Finance Corporation (HDFC) told CNBC TV18 in an interview that considering  a massive amount of inventory remaining unsold amid an ongoing slowdown in the real estate sector, not many lenders are willing to lend fresh money to the developers. There is a need to support the realty developers as without them there would be no supply, he added.

Meanwhile, the supply of luxury housing priced over Rs 1.5 crore that fell sharply after demonetisation has improved and more than doubled to 16,100 units in the first half of this year across seven cities, property consultant Anarock said in a recent report. The high net worth individuals and non resident Indians are the ones behind rising  demand of these luxury flats is now driven by end users.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1SBI relocates financial inclusion, micro market division to Delhi for better synergy with govt
2Forex reserves touch lifetime high at $545 bn; bank deposit rises faster than last year, shows RBI
3Loan fraud cases sharply fall in 2019-20; SBI registers highest improvement but this bank suffers