Axis Bank Says Residential Demand Strong, Mortgage Interest Rates at Record High

With the work of cultivating the home boosting demand for slightly larger homes, mortgage interest rates hitting an all-time high and house prices stabilizing, this is indeed a good time for buyers looking to invest in a property. To discuss this, CNBC-TV18 spoke with Sumit Bali, President and Head of Retail Lending at Axis Bank.

With the work of cultivating the home boosting demand for slightly larger homes, mortgage interest rates hitting an all-time high and house prices stabilizing, this is indeed a good time for buyers looking to invest in a property. To discuss this, CNBC-TV18 spoke with Sumit Bali, President and Head of Retail Lending at Axis Bank.

Bali said, “There is a lot of home loan activity. We have seen lending for real estate gain momentum; particularly on the mortgage side, our mortgage interest rates, mortgage interest rates are at an all time high and continue to drop a little bit each month. “

“House prices have stabilized, but by combining house prices with the interest rates on offer affordability is about right and it’s probably the best number we’ve seen in the past. of the past decade in terms of affordability index, and that while working from home is also driving demand for slightly larger housing. Demand has therefore been strong and sustained, ”Bali said.

After a phase of lending to large corporations and the resulting loan cancellations, banks have doubled the growth of their retail portfolios. The retail segment represents over 50 percent of Axis Bank’s business and is considered one of its main growth drivers.

Regarding retail, Bali said, “The overall retail portfolio relies heavily on the secure side of the business, namely mortgages and automobiles. But on the unsecured side of the business, which is a personal loan, a credit card, we have seen a strong month-over-month pull, including unsecured business installment loans, which are showing strong growth. demand for working capital by small and medium-sized enterprises (SMEs). We have seen these books grow month by month, demand continues to be strong and as we move into the holiday season it will continue to grow. “

Regarding loans and cards, he said: “The demand for credit cards or personal loans has increased; Auto loans have also increased, but have been constrained by supply issues, but demand continues to be good. We are therefore clearly witnessing an increase in spending on cards, in the demand for personal credit and in the demand for car credit as well as for mortgage loans. So everything is increasing month by month for us.

According to him, the bank is in the process of linking up with a few fintech (financial technology) players. “We are in conversation with many of them to offer the set of facilities, which are mutually beneficial for the partners, us as well as the fintech company. So it’s a very interesting and evolving space and we certainly want to be very important in their field, ”Bali said.

For the full interview, watch the video

(Edited by : Dipika gosh)


Source link

Comments are closed.