PSB’s increase market share in outstanding individual home loans

Private sector banks’ market share in outstanding IHLs declined to 35.97 per cent from 37.51 per cent, per latest NHB data

Public sector banks have strengthened their position in individual housing loans, expanding their share to 44.11% of total outstanding IHLs by March 2025 compared to 42.77% in March 2024. Meanwhile, private banks saw their market share contract during the same period.

Private banks’ portion of outstanding individual housing loans decreased to 35.97% from 37.51%, according to recent data from the National Housing Bank. Analysts suggest public banks’ competitive pricing through lower-cost deposits and strategic focus on the retail mortgage segment contributed to this shift.

Housing finance companies and regional rural banks witnessed marginal gains in market share, reaching 18.63% (from 18.47%) and 1.28% (from 1.24%) respectively. The aggregate outstanding IHLs across all lending institutions grew 11.76% year-over-year, while loan disbursements saw only minimal growth of 0.23%.

By fiscal year-end 2025, total outstanding housing loans reached ₹36.07 lakh crore, with annual disbursements totaling ₹8.77 lakh crore.

Public Banks Lead Growth

Public sector banks achieved the strongest performance across all lenders, with outstanding housing loans growing 15.27% annually and disbursements increasing 12.42% in FY25. Their mortgage portfolio reached ₹15.91 lakh crore with annual disbursements of ₹3.84 lakh crore.

Private Banks See Contraction

Private banks recorded the weakest growth among lenders, with outstanding housing loans expanding just 7.17% year-over-year. Their disbursements declined 14.71%, settling at ₹12.97 lakh crore in outstanding loans and ₹2.89 lakh crore in annual disbursements.

Industry observers note shifting consumer preferences toward larger homes, premium developments, and tech-enabled properties continue to drive housing demand nationwide. Mortgage lending constitutes 51% of total retail credit for commercial banks as of March 2025.

Housing finance companies maintained steady growth with outstanding loans rising 12.73% to ₹6.72 lakh crore and disbursements increasing 5.10% to ₹1.92 lakh crore during the fiscal year.

Published on November 11, 2025