SBI is gearing up to take on the merged HDFC Bank | Rare Techy

“SBI is the largest home loan provider in the country. Our home loan market share is 35.3% (among scheduled commercial banks); we are very aware of the HDFC-HDFC Bank merger and are taking necessary steps to counter the competition.” that comes forward,” Khara said at the 67th annual general meeting.

HDFC Bank and HDFC had announced an agreement in April to make the combined entity more competitive, and allow access to a captive customer base to cross-sell products. The merger, which is expected to close in 18 months subject to regulatory approvals and other approvals, will widen its lead over private sector peers ICICI Bank and Axis Bank in terms of total loans.

Currently, HDFC Bank is in the home loan business with HDFC. Under the arrangement, HDFC Bank sells home loans, while HDFC underwrites and underwrites. HDFC Bank charges an origination fee for transactions and has an option to buy up to 70% of fully allocated loans. As of December 31, the loan book is consolidated ₹17.9 trillion, way ahead of ICICI Bank ₹8.14 trillion and Axis Bank ₹6.65 trillion. SBI had total liabilities ₹26.64 trillion at the end of December.

According to announcements as part of the merger announcement, 33% of ₹17.9 trillion loan book, or ₹5.9 trillion, will be in mortgage until the end of December. Meanwhile, SBI’s home loan book has stagnated ₹5.4 trillion as of December 31.

As of March 31, SBI’s home loan portfolio has come to a standstill ₹5.61 trillion, 11.5% from the previous year. SBI’s home loan book has grown exponentially ₹1 trillion in 2011 thus far accounting for 23.87% of its total advances. The bank paid approx ₹1.46 trillion in home loans and other related loans in 2021-22, its latest annual report showed.

“Further digitization of the entire home loan journey is at an advanced stage. Advanced in-house digital platforms like Yono and Online Customer Acquisition Solution/ Commercial Home Acquisition Solution are being widely promoted as resource tools to maximize home loan business and increase our market share,” SBI said in the annual report.

The bank is also accelerating its digital agenda, including the expansion and reach of the Yono app using advanced analytics. “The bank will seek mutually beneficial partnerships with fintechs and non-banking financial companies to increase penetration and access to borrowers,” Khara was quoted as saying in SBI’s annual report. As of March, SBI had 22,266 branches, over 68,000 business tellers and over 65,000 automatic teller machines, including 12,872 automatic deposit and withdrawal machines.

In March, Mint reported that SBI was planning a separate digital entity and would be revamping its mobile app, renaming it Only Yono, as part of its future-readiness decision.

The annual report said that as of March 31, Yono had 111.74 million downloads, opened 26,000 new digital savings bank accounts daily and had 48.35 million registered users.