SBI’s outstanding home loan portfolio reached ₹9.44 lakh crore in FY 2025-26, highlighting strong housing demand, customer trust and the bank’s leadership in India’s home loan market.
Home loans are a powerful instrument of financial inclusion, wealth creation and economic growth.
Home loans have become one of the most important financial products in India’s retail banking sector. They help families fulfil the dream of owning a house, support real estate development, and contribute to economic growth through demand for construction, cement, steel, interiors, labour and allied services. In India, housing finance has expanded rapidly due to rising urbanisation, higher disposable income, growing aspiration for home ownership, supportive government policies and wider access to organised credit.
According to SBI’s Annual Report FY 2025-26, the housing market witnessed strong growth during the year, supported by favourable government policies, urbanisation and rising incomes. This resulted in healthy pan-India demand for SBI Home Loans. The bank’s home loan business continued to remain a major pillar of its personal banking portfolio.
SBI Home Loan Portfolio Performance
State Bank of India has maintained a dominant position in the home loan market. As per the Annual Report FY 2025-26, SBI’s Real Estate Assets Under Management stood at Rs. 9.44 trillion in March 2026, registering 13.66% year-on-year growth. This growth amounted to an increase of Rs. 1.13 trillion (Lakh Crore) during the year. The report also highlights that SBI’s home loan portfolio has grown from Rs. 1 trillion in March 2011 to Rs. 9.44 trillion (Lakh Crore) in March 2026, showing the long-term strength of the bank’s housing finance business. It meaning the bank had housing and real estate loans of this total value outstanding on its books. This reflects the total amount yet to be repaid by home loan borrowers.
Home loans form a significant share of SBI’s overall advances. In FY 2025-26, home loans constituted 22.54% of total domestic advances and 34.15% of total retail advances. This shows that housing finance is not just a customer-facing product but also a strategic business driver for the bank. During the year, SBI disbursed Rs. 2.59 trillion in home loans and home-related loans, reflecting strong demand from salaried, self-employed and other borrower segments.
With Rs. 9.44 trillion in Real Estate AUM, Rs. 2.59 trillion in disbursements and improved Gross NPA of 0.60%, SBI’s home loan business stands as a key pillar of India’s housing finance ecosystem.
| Key Fact | Details |
|---|---|
| Total Home Loan Portfolio | ₹9.44 lakh crore outstanding in FY 2025-26 |
| Meaning of Portfolio | Total active home loan amount yet to be repaid by borrowers |
| Fresh Disbursement | ₹2.59 lakh crore in home and home-related loans during FY26 |
| Year-on-Year Growth | 13.66% growth in Real Estate AUM |
| Growth Amount | ₹1.13 lakh crore added during FY 2025-26 |
| Share in Domestic Advances | Home loans formed 22.54% of total domestic advances |
| Share in Retail Advances | Home loans formed 34.15% of total retail advances |
| Market Share Among Scheduled Commercial Banks | Increased to 28.14% in March 2026 |
| Previous Market Share | 27.67% in March 2025 |
| Asset Quality | Gross NPA in home loans reduced to 0.60% |
| Long-Term Growth | Portfolio grew from ₹1 lakh crore in March 2011 to ₹9.44 lakh crore in March 2026 |
| Digital Initiative | Web-based home loan platform enabled online applications and instant in-principle approvals |
| Customer Support | Customer Loan Assistance Portal supports document upload, tracking and disbursement requests |
| Strategic Focus | SBI is working toward end-to-end digitalisation of home loans |
| Market Position | SBI remains India’s largest home loan provider |
Market Share and Leadership
SBI remains one of the largest home loan providers in the country. The bank gained 47 basis points market share among All India Scheduled Commercial Banks, increasing from 27.67% in March 2025 to 28.14% in March 2026. Its overall market share also increased by 40 basis points, from 20.40% in March 2025 to 20.80% in December 2025. This growth indicates customer trust, competitive offerings and wider distribution reach.
The bank’s leadership is supported by its large branch network, brand credibility, digital platforms and ability to serve customers across urban, semi-urban and rural markets. SBI’s Annual Report notes that the bank remains the largest home loan provider in the country and plays a transformative role in fulfilling the home ownership dream of millions of customers.
Asset Quality and Risk Management
Home loans are generally considered secured retail loans because they are backed by residential property. However, strong monitoring remains necessary to prevent stress. SBI’s home loan asset quality improved during FY 2025-26. The bank reported that Gross NPA in the home loan portfolio reduced by 12 basis points, from 0.72% in March 2025 to 0.60% in March 2026. This reflects proactive monitoring, follow-up and disciplined credit practices.
The improvement in asset quality is important because it shows that growth has not come at the cost of credit discipline. For a large lender like SBI, maintaining low NPAs in a massive home loan book is essential for profitability, capital efficiency and long-term sustainability.
Digital Transformation in Home Loans
A major feature of SBI’s home loan strategy is digitalisation. The bank launched a web-based home loan application platform that enables customers to apply from anywhere and receive instant in-principle approvals. This reduces paperwork, saves time and improves customer convenience.
The bank also introduced a Customer Loan Assistance Portal. This portal acts as a communication platform between the bank and customers. It allows borrowers to track loan application status, upload home loan documents and request disbursements. Such features make the home loan journey more transparent and customer-friendly.
Another important initiative is digital document execution and e-stamping. This allows customers, especially young and working professionals, to sign documents from the comfort of their homes. The bank also introduced automatic delivery of Arrangement Letters and Key Fact Statements to customers’ emails, ensuring faster delivery of important documents.
Customer Service Improvements
SBI has focused on improving service delivery for home loan customers. The bank provided seamless services through call centres, including interest certificate intimation through IVR, intimation for collection of title deeds and welcome calls to newly onboarded customers. These measures improve communication after loan approval and strengthen the customer relationship.
The bank’s broader customer-first strategy is also visible in its FY 2025-26 initiatives. SBI reported that it serves over 53 crore customers through more than 23,000 branches, over 65,000 ATMs, digital channels and nearly 80,000 customer service points. This extensive reach helps the bank offer home loans to a wide range of customers across India.
Strategic Initiatives and Product Innovation
SBI introduced several strategic initiatives to strengthen its home loan offerings. It partnered with top developers across India to increase ticket size and address growing demand for premium apartments. It also introduced structured corporate tie-ups with reputed companies and public sector units to offer home loan solutions to employees.
On the product side, SBI introduced hybrid variants combining term loan and overdraft features for home loans and personal loans against property. The bank also enhanced features under the Builder Finance Scheme and home loans for repairs and renovation. Eligible home loan customers were also provided in-principle approval for car loans, creating cross-selling opportunities.
Priority Sector and Inclusion
SBI’s home loan portfolio also contributes to priority sector lending. The Annual Report states that the bank’s Priority Sector Lending stood at 28.58% of the total home loan portfolio as of March 2026. This indicates that housing finance is also helping support affordable and inclusive credit goals.
Outlook
The future of home loans in India remains positive. Demand is expected to remain supported by urbanisation, rising income levels, nuclear families, better connectivity, housing aspirations and digital loan processing. Banks that combine trust, speed, technology and customer service will continue to gain market share.
SBI’s focus on end-to-end digitalisation of home loans is especially important. The bank stated that it is actively working towards end-to-end digitalisation of home loans and expects the digitalisation journey to be completed in FY 2026-27.
(India CSR)
