SMIB granted CB approval to branch out

Anjana Samarasinghe

The local housing finance market is growing at a rate of 30 to 35 per cent despite artificial growth last year.

General Manager of the State Mortgage and Investment Bank (SMIB) Ajit Weerasinha said there is growth of 30 to 35 per cent in the local housing finance market.

Last year there was a sudden increase in lending for housing finance of public servants by the Government and this created the artificial growth in the industry, he said.

Talking about the interest rates in the housing finance market, Weerasinghe said that most of the commercial banks in the country consider the housing loan segment as part of their product portfolio and increase their housing loan interest rates.

‘However SMIB was able to maintain the housing loan interest rate at 16 per cent from January this year. But in Commercial banks there is a increase in the housing loan interest rates from January to now, he said.

SMIB is targeting 15,000 loans worth of Rs. 3 billion for this year. SMIB also focusing on financing mega property development projects too.

Chairman of SMIB Chandima Weerakkody said the bank has noticed a significant growth in applying for housing loans in every part of the country except Northeast areas. However Central Bank has permitted SMIB to open ten new branches during this year.

SMIB opened two new branches in Kiribathgoda and Battaramulla yesterday while upgrading their main branch in Colombo.

Speaking at the opening ceremony Minister of Finance and State Revenue Ranjith Siyambalapitiya said the country needs to increase its savings by 7 per cent to 8 per cent to accelerate development of the country.

The bank launched its website which would enable customers to obtain loan applications without visiting its branches.