SBI Home Loan Portfolio Projected to Cross ₹10 Lakh Crore Milestone This Quarter, Says Chairman CS Setty

State Bank of India (SBI) is expected to cross the ₹10 lakh crore milestone for its home loan portfolio in the current quarter, according to Chairman CS Setty. The country's largest lender previously surpassed the ₹9 lakh crore mark in housing finance during the last financial year.

In an interview, Setty stated that robust demand is driving the portfolio toward the 10 trillion mark this quarter. SBI currently holds a market share of nearly 28 per cent in the domestic home loan segment. The bank has focused on expanding accessibility through more than 460 home loan processing centres located across India.

Setty noted that transparency in pricing, along with customer trust in the bank's documentation and due diligence processes regarding builders, remain primary factors attracting borrowers to SBI. He further emphasized that housing finance plays a broader role in the economy rather than acting as a standalone product. According to Setty, residential and commercial real estate supports more than 200 allied industries, creating a significant multiplier effect on economic growth.

Addressing the broader mortgage market, Setty pointed out that the industry-level securitisation pool exceeds ₹30 lakh crore, but these assets largely remain illiquid. This illiquidity limits banks' ability to recycle capital and expand their lending operations compared to global mortgage markets.

To address this, SBI is exploring securitisation structures to help deepen the market and strengthen funding capabilities. Setty noted that adequate participation from the non-banking sector is essential for these structures to function effectively. The bank is currently working with investors on the structure and tenure of the paper, with plans to complete at least one transaction in this space during the current financial year to expand its lending capacity.

Additionally, as the Reserve Bank of India's concessional swap window approaches its closure at the end of the month, Setty expressed confidence that SBI will garner approximately USD 10 billion from non-resident Indians and foreign investors. The RBI recently advanced the closure of the Foreign Currency Non-Resident Bank deposits swap window to August 31, moving it up from the initial September 30 cut-off date.

"The milestone being approached by State Bank of India highlights the steady demand within the domestic housing sector. Beyond the financial scale of reaching a ₹10 lakh crore portfolio, the focus on developing securitisation structures is a critical step for the broader lending ecosystem. Unlocking liquidity in the mortgage market can improve capital recycling for banks and expand funding capabilities, which ultimately supports the extensive network of allied industries tied to real estate development." — Dr. Shishir Gupta, Founder & CEO, StartupLanes