India's banking behemoth, the State Bank of India (SBI), is on the cusp of a monumental achievement in the retail lending space. The bank's massive home loan portfolio is projected to surpass the staggering ₹10 lakh crore mark in the next financial year, fueled by sustained demand and a conducive economic environment.
The Road to a Trillion Milestone
SBI Chairman C S Setty, in an interview with PTI, revealed that the bank's home loan book has already crossed the ₹9 lakh crore threshold, cementing its position as the country's undisputed leader in mortgage lending. This segment alone constitutes over 20% of SBI's total assets, making it the single largest business unit within the bank.
The growth trajectory has been consistent and impressive. From a modest ₹1 lakh crore in March 2011, the portfolio has swelled to its current size, hitting ₹8.31 lakh crore at the close of FY25 and then breaching the ₹9 lakh crore mark in November 2025. Setty expressed confidence that, at the current growth rate of 14%, the ₹10 lakh crore milestone is well within reach in the coming fiscal year.
Robust Growth and Impeccable Asset Quality
The bank's success in home loans is not just about volume; it's also characterized by remarkable asset quality. Through proactive monitoring and robust risk management, SBI has managed to keep non-performing assets (NPAs) in this segment at an enviably low level. The gross NPA ratio for home loans stood at just 0.72% at the end of FY25, one of the lowest figures in the entire Indian banking sector. This demonstrates the bank's ability to grow its book while maintaining stringent credit discipline.
The momentum is part of a broader credit growth story for SBI. The bank has revised its overall credit growth target for the current fiscal year upwards from 12% to 14%. This optimism is largely driven by the performance of its RAM segment – Retail, Agriculture, and MSME.
RAM Segment Fuels Overall Expansion
The RAM segment, which now accounts for a dominant 67% of SBI's total loan portfolio, crossed the ₹25 lakh crore milestone in September. Chairman Setty highlighted that within this segment, MSME loans are growing at a rapid 17-18%, while agriculture and retail are expanding at around 14%.
Beyond home loans, the bank is witnessing positive trends in other retail products. Gold loans are showing good growth, and express credit (unsecured personal loans) is expected to register double-digit growth. This diversified strength across retail verticals underscores SBI's deep penetration and trust among Indian consumers.
The bank's revised guidance and strong performance signal confidence in India's economic growth prospects. As the largest lender sets its sights on the ₹10 lakh crore home loan landmark, it reflects not only its own strategic execution but also the underlying resilience and demand in the Indian housing finance market.
