New Delhi, August 27, 2026: State Bank of India is approaching a significant milestone in its retail lending business, with its mortgage portfolio expected to cross ₹10 lakh crore, or ₹10 trillion, during the current quarter.
SBI Chairman CS Setty said the bank expects to reach the landmark on the back of robust demand for housing finance. The lender had already crossed the ₹9 lakh crore home-loan portfolio level during the previous financial year.
Crossing ₹10 lakh crore would underline the extraordinary scale that housing finance has reached within SBI and reinforce the bank's importance in India's mortgage market.
SBI Says It Holds Nearly 28% Home-Loan Market Share
SBI's scale is particularly significant because the bank says it accounts for nearly 28% of the home-loan segment.
The lender has also built a nationwide infrastructure to process housing loans, operating more than 460 home-loan processing centres across India. According to Setty, accessibility, transparent pricing and confidence in SBI's documentation and builder due-diligence processes are important factors behind customers choosing the bank.
For a housing loan — often one of the largest financial commitments a household makes — trust in documentation, property verification and lending terms can play an important role alongside the interest rate itself.
SBI's Mortgage Business Has Expanded Rapidly
The approaching ₹10 lakh crore milestone is the latest stage in a long expansion of SBI's housing-finance business.
SBI's FY2025 annual report showed its real-estate/home-loan assets under management at ₹8.31 trillion in March 2025, up from ₹7.26 trillion in March 2024. The portfolio had stood at only ₹1 trillion in March 2011.
That longer-term progression demonstrates how mortgages have developed into a major component of the bank's domestic lending operations.
The annual report also showed ₹2.28 trillion of home and related loans being disbursed during FY2025.
Why ₹10 Lakh Crore Matters Beyond SBI
A mortgage portfolio of this size is not simply a banking milestone.
Housing purchases generate demand across a much wider economic ecosystem, including construction, cement, steel, electrical equipment, furniture, home appliances, logistics and professional services.
Setty said more than 200 industries are connected with commercial and residential real estate, arguing that housing finance should therefore be viewed as part of the broader economic-growth ecosystem rather than merely another retail banking product.
A sustained expansion in mortgage lending can consequently have a multiplier effect as households purchase homes and subsequently spend on furnishing, renovation and other associated products and services.
Strong Demand, But Affordability Still Matters
The growing portfolio indicates continued demand for formal housing finance, but the ₹10 lakh crore figure needs to be interpreted carefully.
An expanding outstanding loan book does not automatically mean housing has become more affordable or that property sales are rising at the same pace.
Homebuyers still have to balance property prices, household incomes, down-payment requirements and monthly EMIs. Changes in lending rates can also substantially alter the total cost of a long-duration mortgage.
For banks, meanwhile, rapid portfolio expansion must be accompanied by disciplined underwriting and monitoring to preserve asset quality.
SBI's FY2025 annual report reported a gross NPA ratio of 0.72% in home loans as of March 2025, indicating relatively low reported stress in that portfolio at the time.
SBI Looks at Mortgage Securitisation
Alongside expanding conventional home lending, SBI is also exploring ways to make mortgage assets more liquid.
Setty said India's outstanding home-loan pool at the industry level exceeds ₹30 lakh crore, but mortgage assets remain relatively illiquid compared with some international markets.
SBI is therefore working with investors on potential securitisation structures and aims to complete one transaction in this space during the year.
In simple terms, securitisation can allow a lender to package loans into financial securities that can be purchased by investors. This can free up capital and potentially provide banks with additional capacity for new lending.
However, a deeper securitisation market requires sufficient investor participation, suitable structures and careful management of credit and market risks.
Wider Processing Network Strengthens SBI's Reach
Another factor supporting SBI's home-loan expansion is its geographical footprint.
With more than 460 dedicated processing centres, the bank has the infrastructure to serve borrowers beyond India's biggest metropolitan housing markets.
Its earlier annual report also highlighted digital loan-generation channels such as YONO and the Retail Asset Acquisition System, alongside builder tie-ups and digital documentation initiatives.
The combination of physical reach and digital processing is increasingly important as housing development expands across Tier-II and Tier-III cities.
What Does the Milestone Mean for Homebuyers?
For consumers, SBI's expanding portfolio could mean continued competition among banks and housing-finance companies seeking mortgage customers.
Competition can encourage lenders to improve processing times, digital services, loan structures and customer experience.
But borrowers should not select a home loan based purely on the size or reputation of the lender.
The interest rate, whether the rate is floating or fixed, processing charges, prepayment conditions, loan tenure, EMI burden and total interest payable over the life of the mortgage remain critical considerations.
A lower initial EMI can look attractive, for example, but a longer tenure may substantially increase the total interest eventually paid.
Balanced Analysis: A Major Milestone With Risks to Watch
SBI approaching ₹10 lakh crore in home loans is a strong indicator of the scale of India's mortgage market and the bank's dominant role within it.
The positive interpretation is straightforward: households continue to seek formal financing for property purchases, while a large national lender has developed the infrastructure required to serve that demand.
There is also a wider economic benefit because housing activity supports employment and demand across numerous industries.
However, rapid mortgage expansion should not automatically be interpreted as evidence that every part of India's residential property market is equally healthy.
Property affordability varies sharply between cities and income groups. Rising property values can make home ownership more difficult even when financing is readily available. Banks must simultaneously ensure that competition for borrowers does not weaken underwriting standards.
SBI's next challenge, therefore, is not merely crossing the ₹10 lakh crore mark. It is maintaining portfolio quality while continuing to expand responsibly.
Conclusion
SBI's expected ₹10 lakh crore home-loan portfolio represents a landmark for both the bank and India's housing-finance industry.
From ₹1 trillion in March 2011 to an expected ₹10 trillion milestone, the scale of SBI's mortgage business illustrates how deeply home finance has become embedded in India's retail banking landscape.
With nearly 28% market share claimed by the bank, more than 460 processing centres and plans to explore mortgage securitisation, SBI appears focused on expanding its housing-finance franchise further.
The bigger question will be whether this growth can continue alongside affordable borrowing, sound underwriting and strong asset quality.
This article is based on reporting published by Business Standard.
