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State Bank of India’s home loan portfolio is expected to cross the INR 10 lakh crore mark during the current quarter, driven by sustained housing demand, chairman C S Setty said. SBI had crossed INR 9 lakh crore in home loans during the previous financial year and currently accounts for about 28% of India’s home loan market. The lender is also working to expand access through dedicated processing centres and is exploring securitisation to recycle capital and support further lending. The milestone reinforces SBI’s dominant position in housing finance.
State Bank of India (SBI) is set to cross the INR 10 lakh crore milestone in its home loan portfolio during the current quarter, chairman C S Setty said, pointing to continued demand for housing finance in the country. The lender had crossed INR 9 lakh crore in home loans during the previous financial year, according to a report by Press Trust of India.
SBI currently holds around 28% of the country’s home loan market, giving it a leading position among housing finance providers. Setty said the growth in the mortgage portfolio has been supported by robust demand, with the bank continuing to focus on making home loans more accessible to customers across the country.
The lender has been expanding its processing infrastructure to facilitate home loan applications and approvals. SBI operates dedicated home loan processing centres, which are intended to streamline the lending process and improve customer access to mortgage finance across different markets.
The expected crossing of the INR 10 lakh crore mark comes as residential demand remains an important driver of credit growth in the banking sector. Home loans represent a significant component of retail lending, with banks and housing finance companies continuing to compete for borrowers as demand for residential property remains steady across major markets.
SBI is also looking at securitisation as a way to improve capital recycling and create additional lending capacity. Under securitisation, loans can be pooled and transferred to investors, allowing lenders to release capital and potentially use it to originate additional loans. Setty indicated that the bank is pursuing this avenue to strengthen its ability to support further growth in its mortgage portfolio.
The scale of SBI’s home loan book also reflects the bank’s extensive customer reach and distribution network. Its presence across urban, semi-urban and smaller markets allows it to serve borrowers across a wide range of housing segments. The bank has also continued to develop digital and technology-enabled processes for its retail lending operations.
The INR 10 lakh crore milestone would represent another significant expansion in SBI’s housing finance business after the portfolio crossed INR 9 lakh crore in the previous financial year. The growth also comes against a broader increase in formal housing finance penetration, as borrowers increasingly rely on institutional lenders to fund residential purchases.
For the real estate sector, sustained growth in home loan portfolios is an important indicator of housing demand and financing availability. Easier access to mortgage credit can support property purchases, particularly in markets where residential sales continue to be driven by end-user demand.
SBI’s projected milestone therefore highlights the continued importance of bank financing in India’s residential property market. With its large market share, nationwide reach and plans to recycle capital through securitisation, the lender is positioning its home loan business for further expansion.
Source- PTI
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