Public sector banks surge to 43% market share in home loans, overtaking private lenders
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Public sector banks have emerged as the largest financiers of new mortgages over the past four years, drastically altering the market dynamics in the home-loan segment and forcing a reshuffle of the industry leader-board earlier tilted toward private lenders. Over the past four years, governmentowned banks have steadily accelerated market share, data published by credit bureau CRIF Highmark showed. For PSBs, the share of new home loans by value rose to 43% in FY25 from 34% in FY22. Analysts attribute the expansion in the share of business for public-sector lenders to competitive rates and government initiatives to boost home ownership. As per the June 2025 Financial Stability Report (FSR) of the central bank, in FY25 the overall credit growth of PSU banks outpaced that of private banks after more than a decade, with home loans being among the primary growth drivers in the retail loans category. Mortgage pioneer Housing Development Finan...