SBI Foresees Home Loan Portfolio Surpassing ₹10 Lakh Crore Next Fiscal Year Amidst Strong Uptick
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Bolstered by vigorous demand, State Bank of India anticipates its home loan division will cross the ₹10 lakh crore threshold in the coming fiscal year. Details here.
The State Bank of India (SBI), the nation's largest lending institution, is on track to achieve a significant milestone. Fueled by strong demand within a favorable low-interest environment, its home loan division is projected to exceed ₹10 lakh crore in the next financial year.
As SBI Chairman C S Setty told PTI, the bank's existing home loan holdings already exceed ₹9 lakh crore. According to Setty, this segment represents the bank's single largest business unit, accounting for over 20% of SBI's total assets.
Maintaining a 14% expansion rate, SBI is well-positioned to reach this ₹10 lakh crore goal in its home loan business during the upcoming fiscal year, Setty noted.
Last month, SBI's home loan portfolio surpassed the ₹9 lakh crore threshold, solidifying its position as the country's foremost mortgage provider. The bank concluded FY25 with ₹8.31 lakh crore in home loans, demonstrating a 14.4% increase from the prior fiscal year.
Over the years, SBI has steadily cultivated its home loan portfolio, growing from ₹1 lakh crore in March 2011 to ₹9 lakh crore by November 2025.
Furthermore, SBI has successfully maintained non-performing assets (NPAs) in this sector below 1% through continuous and proactive monitoring. At the close of FY25, the bank's gross NPA in home loans stood at 0.72%, ranking among the lowest in the banking sector.
Previously, Setty voiced optimism that the momentum within the Retail, Agriculture, and MSME (RAM) segment would fuel an overall credit expansion of 14% during the current fiscal year. In September, the RAM segment, which constitutes 67% of SBI’s total loan portfolio, exceeded ₹25 lakh crore.
Given the improvement in economic expansion, SBI has revised its credit growth target upward from 12% to 14% for the current financial year.
"We've raised our credit growth projections, adjusting it from 12% to 14%," Setty stated. "We anticipate substantial credit growth, particularly from the RAM sector, with MSME experiencing almost 17-18% growth, while agriculture and retail are around 14%."
Additionally, Setty mentioned the bank is seeing positive growth in gold loans, and express credit, which represents unsecured personal loans, is poised for double-digit growth.
