It now expects its home loans portfolio to grow by only 15-20 per cent this year.
The bank had announced a cut in interest rates on home loans on Wednesday by up to 0.60 per cent.
SBI Deputy Managing Director and chief credit and risk officer Atanu Sen said: "There has been a drop in home registrations and we want to be realistic and now expect that the home loan segment will grow by only 15-20 per cent."
The bank was earlier targeting a 25-per cent growth in its home loan book.
Sen further said that existing customers can migrate to the lower home loan rates by paying a processing fee of one per cent of their outstanding loan amount.
The reduction in auto loan rates was up to 0.50 per cent. Sen added that the bank's total auto loan book stood at Rs 19,000 crore. The home loan book has grown by 10 per cent in the first quarter, but Sen emphasised that the bank has not lost its market share in the segment.
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Sen further said that SBI has maintained its overall home loan market share at 16.9 per cent in the segment even during this period.
Within the state-run banks alone, its share is at 26 per cent, Sen said, adding that the total home loan book currently stands at Rs 1,05,000 crore.
The bank cut its home and auto loan rates on Wednesday after the Reserve Bank of India announcedreduction in the statutory liquidity ratio (SLR), which governs the percentage of deposits to be parked in government bonds and idle cash with the central bank.
The one-per cent SLR cut will release additional liquidity to the tune of Rs 10,000 crore for SBI, Sen said.
On the impact on margins as a result of the reduction in rates, Sen said it would be minimal as the realisations on the loans are higher than the 7.5-8 per cent earned on government securities.
Source: businesstoday.intoday.in
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