Public Sector Banks Surpass Private Rivals in Home Loan Market Share

Public sector banks have captured 50% of the home loan market share by value, surpassing private banks. The home loan market grew by 11.1% year-on-year. Consumption loans increased by 15.3%, driven by the gold sector. Asset quality improved with a slight decrease in overdue consumption loans.

Public sector banks have claimed a dominant position in India's home loan market, achieving a 50% market share of total loan originations by value in September. This significant milestone was reported by a leading credit information company.

The state-run banks have effectively overtaken their private sector counterparts in this competitive landscape. More than 40% of home loans are now in the higher loan bracket of over Rs 75 lakh, with an increase in average exposure per loan.

The overall home loan market, recognized as the largest sector within retail lending, experienced an 11.1% year-on-year growth, reaching Rs 42.1 lakh crore by September's end. Notably, consumption loans showed a 15.3% surge, mainly driven by the gold segment, while the asset quality saw marginal improvements.

(With inputs from agencies.)