Home loan originations contract in Q3 amid rate hikes, low-value segment suffers the most

There was a 2.6 per cent decline in home loan by origination value to Rs 2.08 lakh crore in the December quarter against Rs 2.13 lakh crore in the year-ago period and Rs 2.23 lakh crore in the preceding September quarter, as per the data.

The CIC said that there was a 14.4 per cent decline in home loan originations by value for those borrowings, which are under Rs 25 lakh, while in the Rs 25-Rs 35 lakh bracket, the decline was 9 per cent compared to the year-ago period.

However, there has been a 5.5 per cent increase in the segment, where the borrowing is more than Rs 35 lakh, the CIC said.

When looked from a volumes perspective, the overall figures declined by 7 per cent in the December quarter, the agency added.

The average ticket size has increased to Rs 24.9 lakh compared to Rs 23.9 lakh.

The state-owned lenders have gained market share when looked at both from the value as well as volume perspective, the CIC said, adding that public sector banks accounted for 43.9 per cent market share by value in the December quarter against 39.1 per cent in the year-ago period.

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Maharashtra had the highest contribution on home loans at Rs 45,120 crore in the quarter and had a wide lead over Karnataka where lenders gave out Rs 23,178 crore of home loans.

Mumbai, the capital of Maharashtra, alone accounted for Rs 25,068 crore of the home loans, making it the biggest city in home loans.

However, the financial capital lost out to Delhi on overall retail lending, courtesy of higher borrowings for auto and personal loans in the national capital region, the CIC said.