The State Bank of India (SBI) has just reclaimed the title of Home Loan Leader. After nearly two years, it has again topped the home loan segment. It has outpaced HDFC Bank by around ₹8,000 crore in its portfolio.
SBI’s home loan book reached ₹8.51 lakh crore by end-June 2025. That marks a strong 15 % growth year-on-year. HDFC Bank’s portfolio stood at ₹8.43 lakh crore. This marks a modest rise of 7 % year-on-year and just 0.9 % over the previous quarter. Now, SBI leads by 0.95 percentage points—regaining the crown firmly.
Let’s walk through the details of SBI’s rise, the implications for the housing finance market, and what it means for banks and homebuyers.
SBI’s Return to the Top
This is a significant shift. HDFC Bank had held influence after its merger with HDFC in mid-2023. That merger gave it a large home loan book instantly. It overtook SBI with ease. The tables have now turned.
SBI’s home loan book has grown steadily. At ₹8.51 lakh crore, it now leads by ₹8,000 crore. That gap may appear small. Yet it restores SBI as the Home Loan Leader. It also underscores the strength of its housing finance network.
The Numbers at a Glance
- SBI home loans (Q1 FY26): ₹8.51 lakh crore
- Growth: ~15 % year-on-year
- HDFC Bank home loans: ₹8.43 lakh crore
- Growth: ~7 % year-on-year; 0.9 % sequential growth
- Lead: SBI ahead by ₹8,000 crore, or 0.95 percentage points
These figures make clear how SBI collected ground. Strong demand in tier-2 and tier-3 cities played a key role. Plus, its focus on affordable housing schemes brought more volume under its book.
Why SBI’s Growth Stood Out
SBI has deep reach and scale. It has branches in smaller towns and strong government tie-ups. Programs like the Pradhan Mantri Awas Yojana helped. Many homebuyers in underserved areas look to SBI as a trusted lender.
Meanwhile, HDFC Bank’s growth was steadier. It relies on urban and semi-urban markets. Growth in HDFC Bank’s mortgage book was slower due to a more mature base.
Thus, SBI’s aggressive gains in periphery markets gave it an edge. That drove it past the post-merger home loan book of HDFC Bank.
What It Means for the Housing Loan Market
1. A Revisited Balance of Power
SBI regaining leadership shows that public sector lenders can reclaim space. Market dominance isn’t permanent. Strong execution and reach still matter.
2. Rising Demand in Smaller Cities
The tier-2 and tier-3 markets are active. These areas account for a sizable part of SBI’s growth. This trend could shape the future of housing finance.
3. Focus on Affordable Housing
Government schemes are paying dividends. Borrowers are choosing loans under these schemes. The popularity of these programs illustrates demand for low-cost housing finance options.
Implications for Banks and Homebuyers
- For SBI: This growth validates its strengths in reach, pricing, and customer trust. It also positions SBI well for future growth momentum.
- For HDFC Bank: The loss signals areas to watch. It may need to step up its strategy in smaller markets. This race is far from over.
- For Homebuyers: Multiple lenders compete for loans. This may mean better terms, rates, and processing options.
Measuring Growth Momentum
SBI’s 15 % growth reflects strong demand and execution. In contrast, HDFC Bank’s 7 % year-on-year growth shows a mature base nearing saturation.
Even a 0.9 % sequential rise at HDFC Bank is modest. SBI’s performance is more robust and dynamic.
This momentum shows that SBI is more agile in capturing current housing demand. It may continue to extend its lead in coming quarters.
Risks and Watchouts
Still, some factors warrant attention:
- Interest Rate Movement: A future rate hike could slow down new home loan demand.
- Urban Saturation: SBI may find growth harder in cities where supply and demand are balanced.
- Service Quality: HDFC Bank might win back market share through better digital processing or faster approvals.
However, for now, SBI’s home loan segment looks strong and forward-moving.
Summary Table: Home Loan Leader Snapshot
| Metric | SBI (Q1 FY26) | HDFC Bank (Q1 FY26) |
|---|---|---|
| Home Loan Book | ₹8.51 lakh crore | ₹8.43 lakh crore |
| Year-on-Year Growth | ~15 % | ~7 % |
| Sequential Growth | Not specified | ~0.9 % |
| Market Lead | ₹8,000 crore (0.95 %) | Trailing |
| Key Growth Driver | Tier-2/3, PMAY schemes | Urban markets |
Final Thoughts
The title of Home Loan Leader has found its way back to SBI. This achievement stems from strong execution, wide reach, and the right product mix. It’s a reminder that scale and strategy still matter.
For HDFC Bank, this is a slight setback. But its brand strength and urban positioning are still powerful assets.
Ultimately, borrowers benefit when banks compete actively. Better rates, faster approvals, and more options make it a win for homebuyers.
So, who owns the crown? Right now, it’s SBI. But the race is on—and other banks are certainly in the ring.
