SBI Regains Top Spot in Home Loan Market, Overtaking HDFC Bank

India’s largest lender, State Bank of India (SBI), has regained its position as the top home loan lender in the country after a gap of 2 years, overtaking HDFC Bank in the June quarter. The development marks a significant shift in the mortgage lending landscape, particularly given the competitive history between the two banking giants.

SBI Leads with Strong Q1FY26 Performance

In Q1FY26, SBI’s home loan portfolio reached ₹8.51 lakh crore as of June 2025, reflecting a robust 15.05% year-on-year growth. Home loans now contribute 27.7% of SBI’s domestic advances. The bank’s mortgage book stands ₹8,000 crore higher than HDFC Bank, which reported ₹8.43 lakh crore for the same quarter.

HDFC Bank’s growth was modest, registering a 0.9% increase over the previous quarter and a 7% rise year-on-year. This shift in numbers allowed SBI to reclaim the top position after nearly two years.

Affordable Housing Loans Drive SBI’s Momentum

According to the bank’s investor presentation, SBI holds a strong position in the affordable housing loan segment. This is supported by government-backed initiatives such as the Pradhan Mantri Awas Yojana. The lender continues to experience stable demand from tier-2 and tier-3 cities, where the housing market has shown steady resilience.

Competitive History Between SBI and HDFC

SBI first broke HDFC’s long-standing dominance in the home loan segment in February 2021 when it crossed the ₹5 lakh crore mark in outstanding mortgages. However, the lead was short-lived as the merger between HDFC and HDFC Bank in July 2023 created a larger entity with a combined home loan portfolio of ₹7.3 lakh crore, surpassing SBI’s ₹6.4 lakh crore at that time.

Read More: SBI, Bank Of Baroda, PNB and Other PSBs with the Highest Number of Vacancies in 2025! 

Conclusion 

With the latest quarterly results, SBI has regained momentum, reversing the advantage that HDFC Bank enjoyed post-merger. This leadership change highlights the dynamic nature of the home loan market in India, where competition remains intense and market share can shift rapidly depending on growth strategies and lending focus.

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