Axis Bank has a total home loan portfolio of Rs 30,000 crore and the bank plans to increase this at the rate of 30 per cent every year over the next two years.
Thus, the bank aims to have a total home loan portfolio of Rs 50,000 crore by the end of 2014-15. The bank’s home loan portfolio occupies a major part of its retail lending assets, which stood at Rs 43,000 crore.
In the quarter ended December 2012, its retail assets expanded 43 per cent. According to a top official of the bank, the slowdown in the economy led to a decline in home loan demand which is visible through a fall in the growth rates, but said the bank is confident of maintaining its guidance of 30 per cent growth.
The bank is also targeting to increase the retail assets component in the total portfolio to 30 per cent from the present 27 per cent and will be achieving the number soon.
The bank is counting on its geographical reach and designing newer products to make sure it meets the desired target, he said, pointing out to a recently launched special home loan for the self-employed.
In recent times, banks have started playing a key role in the home loan market, which was earlier dominated by dedicated housing finance companies. The country’s largest lender State Bank of India has emerged as the biggest player over the last two years.
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