The public sector banks race in front of private lenders in the home loan market in April-June: Report

Mumbai, public sector banks significantly cultivated their home loan market share in the April-June quarter, despite having a higher incidence of stress, a credit information business said Tuesday. The part of the public sector banks in the total outstanding home loan grew to 46.2 percent in June 2025, from 37.6 percent in the previous period, the Crif High Mark report said. The share of the private sector reduced to 28.2 percent from 35.2 percent during the same period, the report states. Over the past few months, major lenders in the private sector have complained about a lack of common sense in the home loan market, which calls the rate offers as ‘irrational’. Home loans are the largest component of retail loans due to the high ticket sizes and the strong securities of homes make it relatively lower tense. According to the report, the crime of PSBs on home loans is the highest, with 2.85 percent of the outstanding amounts not paid between 31-90 days. On the other hand, only 1.04 percent of the loans were not paid for the borrowers of the private sector. The lower crime rates at banks in the private sector indicate “robust underwriting and early risk tracking”, the report states. In the case of PSBs, higher delinquency rates in ticket sizes were observed under £ 35 Lakh, the report states. Lenders appear to prefer higher ticket-sized loans compared to the smaller, the report states, pointing out that 38 percent of the origin value in the year limit was more than £ 75, compared to 33.6 percent in the previous period, while the same for loans dropped between £ 5 and £ 55 Lakh to 31.2 percent from 34.7 per cent in the year-old. The issuance of a new credit card continued on the southward lane, which dropped 28 percent to 40.6 lakh in April. The company attributed this to regulatory tightening, calibrated risk -modernization by borrowers, and a strategic pivot to improve the quality of the asset in unsecured portfolios. Interestingly, the part of the private sector banks in the new map outreach rose to 75 percent from 71 percent in the previous period, the report states. “Uninsured lending, including personal loans and credit cards, had a moderation in growth, along with rising risk levels. These developments underline the importance of proactive risk management and regulatory vigilance, as borrowers recalibrate portal errors to balance the expansion with stability,” said the chairman of Cic Sachin Seth. This article was generated from an automated news agency feed without edits to text.