SBI have seen a shortfall of close to Rs1,000 crore in the first half of this financial year.” State bank had disbursed close to Rs7,000 crore of home loans in the first half of the last financial year. Market share of state bank of India is close to 12% in Mumbai region and 9% in the NCR. National Capital Region (NCR) and Mumbai contribute significantly to home loan volumes and a slump in these markets is said to be the main reason for the decline in the numbers.

State bank official said the home loan segment will suffer a drop for the full year as well.

“In the current situation, we do not intend to push it further as it stresses out the asset quality,” he said, adding that any announcement in the forthcoming Budget, however, could change this trend.

At present, sales in tier II and III cities are the main driver of home loan sales. The SBI official said the figures would have been abysmal in the absence of good volumes from these cities. Among segments, SBI home loan in the mid-segment of between `25 lakh and `70 lakh have taken a maximum hit as buyers are waiting for inflation to cool and real estate prices to fall further.