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Public sector banks have overtaken private lenders in the home loan market, expanding their share to half of all loan originations by value, according to a new credit information report. Nearly 40 per cent of home loans now fall in the high-value segment above INR 75 lakh, with only a modest rise in active loan accounts but a clear increase in average ticket sizes. The home loan portfolio grew 11.1 per cent year-on-year to INR 42.1 lakh crore. Consumption credit also expanded 15.3 per cent to INR 109.6 lakh crore, driven largely by gold-backed loans. The report noted improving asset quality, with overdue consumption loans easing to 3 per cent.
Public sector banks expanded their share of the competitive home loan market to half of all originations by value earlier this week, according to a report released by a credit information company. The data indicated that state-run lenders had overtaken private sector banks in overall home loan dominance, marking a shift in lending patterns within the retail credit segment. Advertisement
The report stated that nearly 40 per cent of home loans across the country fell within the higher-value bracket of over INR 75 lakh. Although the number of active loans increased only marginally-rising by about 3.3 per cent to 2.29 crore-this reflected a rise in the average ticket size per borrower, pointing to growing demand for larger housing finance.
The overall home loan market, which remains the biggest segment within retail lending, grew by 11.1 per cent year-on-year and by 2.1 per cent on a quarterly basis, taking the total outstanding portfolio to INR 42.1 lakh crore by the end of the past week.
On the consumption credit side, the report highlighted a 15.3 per cent year-on-year expansion, taking total exposure to INR 109.6 lakh crore. A sharp rise in gold-backed loans played a major role in accelerating this segment's growth, continuing a trend seen over the past few years as borrowers increasingly use household assets to secure funding.
The company's chairman, Sachin Seth, mentioned that PSU banks had expanded their leadership both in value and geographical reach, and he noted that regulatory discipline had contributed to more responsible and inclusive lending across diverse customer groups.
However, the Crif analysis pointed out that subdued demand and seasonal variations had slowed growth in consumer durable loans, which rose by 10.2 per cent year-on-year-lower than other categories within retail credit.
From an asset quality standpoint, the report recorded an improvement in overdue consumption loans. Accounts overdue between 31 and 180 days reduced to 3 per cent in the past week, compared with 3.1 per cent in the previous quarter and 3.3 per cent during the corresponding period last year, signalling a gradual stabilisation in borrower repayment behaviour.
Source - PTI
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