PSU Banks Now Control Half of India’s Home Loan Market

Public sector banks have increased their share in the home loan market, accounting for 50% of total new loans by value in September. A new report by credit information firm CRIF High Mark says PSU banks have now moved ahead of private banks in this competitive segment.

High-Value Loans Boost Market Growth

According to the report, nearly 40% of home loans were above ₹75 lakh, showing a strong rise in big-ticket borrowing. The number of active home loans grew only 3.3% to 2.29 crore, which indicates that borrowers are taking larger loans on average.

Overall Home Loan Market Expands

The home loan segment, the biggest part of retail lending, grew 11.1% year-on-year and 2.1% quarter-on-quarter, reaching ₹42.1 lakh crore by the end of September.

Strong Rise in Consumption Loans

On the consumption side, loans grew 15.3% to ₹109.6 lakh crore, led mainly by rapid growth in gold loans. However, loans for consumer durables grew more slowly at 10.2%, due to seasonal trends and weaker demand.

Improvement in Borrowers’ Repayment Behaviour

The report also highlights better asset quality. Loans overdue between 31–180 days improved to 3% in September, compared to 3.1% in June and 3.3% last year.

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PSU Banks’ Leadership Continues

CRIF chairman Sachin Seth said PSU banks have strengthened their lead in both value and customer reach, and added that better regulatory practices are supporting responsible and inclusive lending across the country.

Conclusion

The data shows that PSU banks are becoming stronger players in the home loan market, helped by rising high-value loans and wider outreach. With improving repayment trends and steady retail credit growth, the banking sector continues to move toward healthier and more inclusive lending.

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