Sunteck Realty shares rallied over 6 per cent in early deals on the Bombay Stock Exchange (BSE) on Thursday after the real estate firm signed a memorandum of understanding (MoU) with State Bank of India (SBI) to safeguard home buyers.
SBI, which commands 25 per cent market share each in home loans and auto loans, has announced Residential Builder Finance with Buyer Guarantee Programme (RBBG) to safeguard home buyers financially by issuing guarantee for completion of projects to customers availing SBI home loans. This is a unique 'guarantee' cover for residential home buyers across ten cities of the country.
Boosted by the development, share price of Sunteck Realty gained as much as 6.23 per cent to touch an intraday high of Rs 450.15 against previous close price of Rs 423.75 on the BSE. On the National Stock Exchange (NSE), shares of Sunteck Realty were trading 4.62 per cent higher at Rs 444.20 apiece. The stock opened higher at Rs 441.05 and hit a high of Rs 449.80 in early deals.
In a similar trend, shares of SBI were trading 3.17 per cent higher at Rs 330 apiece on the BSE compared to the previous closing price of Rs 319.85. In comparison, the BSE Sensex was trading 564 points, or 1.38 per cent, higher at 41,382.
Mumbai-based Sunteck Realty said in an exchange filing that RBBG will focus on affordable housing segment with home price of up to Rs 2.50 crore in seven Indian geographies initially. Under this product, all reputed builders fulfilling the prescribed criteria by the bank can avail loan between Rs 50 crore to Rs 400 crore. The criteria include Star rating and CIBIL score.
Launched with a tag line "Sapna Aapka Bharosa SBI Ka", the product will offer home buyers to choose their dream home from SBI approved projects in 10 cities with complete trust and transparency.
Commenting on the deal, Kamal Khetan, CMD, Sunteck Realty said, "We are humbled to be the first partner of the biggest bank of India. This is an endorsement of our strong brand and product offerings, our track record of timely delivery, our pristine balance sheet and adherence to compliance. This MoU is a win-win for our customers who would get the best value proposition for the best quality homes."
Rajnish Kumar, Chairman, SBI said that RBBG will build confidence among home buyers by securing their hard-earned money and will also boost under-stress real estate sector.
"This product is yet another effort by SBI to make affordable housing conveniently accessible to the individuals with dreams of owning their desired home. Based on the response from both builders and customers, we may consider extending this product to other parts of the country," SBI chief said.
By Chitranjan Kumar