Home loan book set to cross ₹10 lakh cr next fiscal year on strong demand: SBI chief

State Bank of India (SBI) Chairman Challa Sreenivasulu Setty

State Bank of India (SBI), India’s premier banking institution, anticipates its home loan portfolio surpassing ₹10 lakh crore in the coming fiscal year, fueled by strong market demand and favorable interest conditions.

“Our current home loan portfolio exceeds ₹9 lakh crore, representing the bank’s largest business segment and accounting for over 20% of total assets,” stated SBI Chairman C S Setty in an interview.

With steady 14% annual growth, SBI expects to achieve this significant milestone by next financial year, he added.

The bank’s mortgage portfolio reached ₹9 lakh crore last month, solidifying its position as India’s leading home loan provider.

Recent financial reports indicate SBI concluded FY25 with ₹8.31 lakh crore in home loans, reflecting 14.4% year-on-year expansion.

This growth builds on consistent progression – from ₹1 lakh crore in March 2011 to the current ₹9 lakh crore benchmark as of November 2025.

The institution maintains exceptional asset quality in this segment, keeping non-performing assets below 1% through rigorous monitoring. FY25 concluded with home loan NPAs at just 0.72%, among the banking sector’s lowest.

Chairman Setty previously highlighted that Retail, Agriculture, and MSME (RAM) segments would drive 14% credit expansion this fiscal year. This segment, constituting 67% of total loans, surpassed ₹25 lakh crore in September.

Responding to economic improvements, SBI revised its annual credit growth target upward from 12% to 14%.

“We observe particularly strong momentum in RAM segments, with MSME loans growing at 17-18% annually while agriculture and retail maintain 14% expansion,” he explained.

The Chairman additionally noted substantial growth in gold lending activities and projected double-digit increases in unsecured personal loan products.

Published on December 21, 2025