SBM unveils Namma Mane scheme under the Housing for All

 State Bank of Mysore has launched the ‘Namma Mane’ scheme under the ‘Housing for All’ initiative by the central government.

The scheme focuses on home loans to economically weaker sections and the low income group, SBM Managing Director Sharad Sharma told Deccan Herald.

Under the economically weaker sections category, any person who has attained age of majority should have up to Rs 3 lakh as annual income from a regular source, while in the low income group, the beneficiary’s income should be in the range of Rs 3 lakh to Rs 6 lakh per annum under the scheme.

The scheme comes with a lower margin of 15 per cent with zero processing fees, while the interest rate is fixed at 10 per cent. There will be an upfront subsidy of 6.5 per cent on loans up to Rs 6 lakh.

Sharma said SBM will be focusing on tier-2 cities as its primary market for the scheme. “We are focusing on business worth Rs 250 crore till March in this scheme,” he added. SBM claims to be one of the best public sector performers in the country when it comes to management of NPAs (non-performing assets).

The NPAs of SBM has shown a significant decrease on a year-on-year basis, unlike most other public sector banks. “Most of our stressed assets are from the corporate portfolio, which we have reduced from 65 per cent to 53 per cent in the past two years.

Among the sectors, steel portfolio is having most stress, followed by infrastructure. In the airline sector, we have a sole NPA, like many other banks, from Kingfisher,” Sharad Sharma told Deccan Herald. Sharma said SBM has also received board approval for raising tier-2 capital worth Rs 500 crore in the current fiscal. It will be issuing 10-year bonds for the same, according to Sharma.

Declining NPAs

    09/15    06/15    03/15    12/14    09/14
% of Gross NPA    4.19    4.21    4.00    5.09    5.07
% of Net NPA    2.22    2.1    2.16    3.11    2.94