11 August 2025
India's largest lender State Bank of India (SBI) has reclaimed its position as the top home loan lender, surpassing HDFC Bank by close to Rs 8,000 crore after a two-year gap in the June quarter, securing a 0.95 percent lead over its private sector peer.
SBI’s home loan portfolio for Q1FY26 stood at Rs 8.51 lakh crore as of June 2025, which is a 15.05 percent on-year growth. Home loans now account for 27.7 percent of SBI’s domestic advances, the lender said. This portfolio is higher by Rs 8,000 crore compared to HDFC Bank, which became the market leader following its merger with Housing Development Finance Corporation (HDFC) in July 2023. HDFC Bank had reported a mortgage book of Rs 8.43 lakh crore for Q1FY26, which is a modest 0.9 percent growth over the preceding quarter and a 7 percent rise year-on-year.
The private sector lender now trails SBI after holding the top position for nearly two years post-merger.
According to the investor presentation, SBI also maintains a leading share in affordable housing loans, supported by government-backed schemes such as the Pradhan Mantri Awas Yojana, and has seen steady demand from tier-2 and tier-3 cities where housing demand remains quite resilient.
SBI first broke HDFC's decades-long stranglehold on the home loan market in February 2021 when it crossed the Rs 5 lakh crore mark in outstanding mortgages. That lead was short-lived, however, as the HDFC-HDFC Bank merger in 2023 created a behemoth with a combined home loan book of Rs 7.3 lakh crore, surpassing SBI’s Rs 6.4 lakh crore at the time.
India's largest lender State Bank of India (SBI) has reclaimed its position as the top home loan lender, surpassing HDFC Bank by close to Rs 8,000 crore after a two-year gap in the June quarter, securing a 0.95 percent lead over its private sector peer.
SBI’s home loan portfolio for Q1FY26 stood at Rs 8.51 lakh crore as of June 2025, which is a 15.05 percent on-year growth. Home loans now account for 27.7 percent of SBI’s domestic advances, the lender said. This portfolio is higher by Rs 8,000 crore compared to HDFC Bank, which became the market leader following its merger with Housing Development Finance Corporation (HDFC) in July 2023. HDFC Bank had reported a mortgage book of Rs 8.43 lakh crore for Q1FY26, which is a modest 0.9 percent growth over the preceding quarter and a 7 percent rise year-on-year.
The private sector lender now trails SBI after holding the top position for nearly two years post-merger.
According to the investor presentation, SBI also maintains a leading share in affordable housing loans, supported by government-backed schemes such as the Pradhan Mantri Awas Yojana, and has seen steady demand from tier-2 and tier-3 cities where housing demand remains quite resilient.
SBI first broke HDFC's decades-long stranglehold on the home loan market in February 2021 when it crossed the Rs 5 lakh crore mark in outstanding mortgages. That lead was short-lived, however, as the HDFC-HDFC Bank merger in 2023 created a behemoth with a combined home loan book of Rs 7.3 lakh crore, surpassing SBI’s Rs 6.4 lakh crore at the time.
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