"Till March we had done Rs 2,348 crore. Afterward we are sanctioning Rs1,500 crore every month," Chief General Manger, P. Nandakumaran, PersonalBanking, SBI, told Business Line.

State Bank Of Indiahad announced that it will offer an interest rate of 8(%) per cent for one yearin the first week of February - so far the lowest in the industry. In thesecond year, the rates applicable will be the prevailing rates then.

To stimulate demand

The bank's move was to stimulate demand in the housing market at a time whenmany buyers postponed their purchasing decisions amid economic uncertainty andfear of job losses. The scheme has now been extended till September.

The bank also offers other schemes, which will be valid till the month-end.Under this, it offers a home loan between Rs 5 lakh and 20 lakh at a fixedinterest rate of 9.25(%) per cent a year for five years, after which rates willbe change around.

State Bank of India,which claims to have the highest growth in its home loan portfolio last fiscal,saw its advances swell to Rs 54,063 crore.