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ICICI Bank pips HDFC in home loan race
BS Banking Bureau in Mumbai |
February 01, 2003 16:05 IST
Housing finance major Housing Development Finance Corporation is losing incremental market share to ICICI Bank.
During the third quarter of fiscal 2003, ICICI Bank's incremental disbursements rose by Rs 2,274 crore (Rs 22.74 billion) as against HDFC's incremental disbursal figure of Rs 2,269 crore (Rs 22.69 billion).
According to figures available with Business Standard, State Bank of India's incremental growth during October-December 2002, stood at Rs 1,300 crore (Rs 13 billion), while that of LIC Housing Finance rose by Rs 746 crore (Rs 7.46 billion).
HDFC reported a growth of 30.1 per cent in disbursements in the third quarter from Rs 17,442 crore (Rs 174.42 billion) in the second quarter.
However, its incremental market share has taken a dip in the third quarter. This is partially on account of ICICI Bank competitively pricing its home loan product.
Senior ICICI Bank officials attributed the lead to its competitive rate structure and expanding distribution structure.
In the third quarter, ICICI Bank priced its home loans cheaper than HDFC's by 25 basis points and was on a par with SBI.
SBI on Friday lowered its home loan interest rates are 75 basis points to 100 basis points higher than those of HDFC.
The differential in rates is higher in the case of fixed rate loans (100 bps) and 75 basis points in the case of floating rate loans.
Aside from its ability to offer cheaper rates, ICICI Bank has also attracted customers by offering free property insurance and personal accident insurance cover. It has extended this freebie to the end of the fiscal.
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