Public sector banks (PSBs) have steadily gained ground in India’s home loan market over the past three years, offering more competitive interest rates than their private counterparts. In a quiet but significant shift since the pandemic, lenders like Union Bank of India, UCO Bank, Central Bank of India, State Bank of India, and Bank of Baroda have emerged as key players—challenging the dominance of private giants such as HDFC Bank, ICICI Bank, and Axis Bank. This marks a notable reversal from the previous decade, during which private banks led growth in most retail lending segments.

According to a CRIF report, the home loan sector has seen robust expansion, driven by low interest rates, increasing urbanisation, and supportive government policies. As of March 2024, the total outstanding home loan portfolio stood at ₹36.2 lakh crore. Originations grew by 9.2% in value and 2.6% in volume in FY24. Notably, there has been a shift in demand from loans in the ₹5 lakh–₹35 lakh range to those above ₹35 lakh. The average ticket size rose 32%, from ₹20.1 lakh in FY20 to ₹26.5 lakh in FY24, reflecting rising property values, increased individual borrowing power, and inflationary pressures. However, the sector has also seen a rise in delinquencies compared to March 2023.