SBI’s Home Loan Book Set to Cross ₹10 Lakh Crore Milestone

SBI’s Home Loan Book Set to Cross ₹10 Lakh Crore Milestone

State Bank of India (SBI) is set to cross the ₹10 lakh crore mark in its home loan portfolio during the current quarter, highlighting the continued strength of housing demand and formal mortgage financing in India.

The lender had crossed ₹9 lakh crore in home loans during the previous financial year. SBI Chairman C S Setty said the mortgage portfolio has continued to grow on the back of robust demand for housing finance.

SBI currently accounts for around 28% of India’s home loan market, giving it a dominant position among lenders serving residential buyers. The scale of its mortgage book also reflects the bank’s extensive reach across urban, semi-urban and smaller markets.

SBI expands home loan processing network

The bank has continued to invest in infrastructure aimed at making home loans easier to process and access. SBI operates dedicated home loan processing centres that help streamline applications and approvals across different markets.

The expected ₹10 lakh crore milestone comes at a time when home loans remain an important component of retail credit growth. Banks and housing finance companies continue to compete for borrowers as residential demand remains relatively steady across major Indian markets.

For the real estate sector, the growth of mortgage portfolios is an important indicator of purchasing capacity. Continued availability of housing finance can support residential sales, particularly in markets where end-user demand remains a key driver.

Securitisation could support further lending

SBI is also exploring securitisation as a way to recycle capital and create additional lending capacity. Under the process, loans can be pooled and transferred to investors, allowing lenders to release capital that can potentially be deployed towards new lending.

For SBI, this could provide another avenue to support the expansion of its mortgage business without relying solely on conventional balance-sheet growth.

The bank’s large customer base and nationwide distribution network give it access to borrowers across different housing segments. Its continued adoption of digital and technology-enabled lending processes is also aimed at improving the overall home loan experience.

Crossing ₹10 lakh crore would mark another major step in SBI’s housing finance business after the portfolio moved beyond ₹9 lakh crore last financial year. It also underlines the growing role of institutional financing in India’s residential property market.

With a sizeable market share, broad distribution network and plans to recycle capital through securitisation, SBI is positioning its home loan business for continued expansion as demand for residential property remains resilient.