Home loan book set to cross ₹10 trn in FY26 on strong demand: SBI chief

State Bank of India (SBI), the country's largest lender, is poised to achieve another milestone with its home loan portfolio expected to cross the Rs 10 trillion mark next fiscal year, driven by robust demand and a favourable low-interest-rate regime.

"Today my home loan portfolio is more than Rs 9 trillion...this is the single largest business unit in the bank, over 20 per cent of our total assets," SBI Chairman C S Setty told PTI.

At 14 per cent growth rate, SBI is well on the path to achieve a milestone of Rs 10 trillion home portfolio next financial year, he said.

SBI's home loan portfolio crossed Rs 9 trillion mark last month, making it the biggest mortgage loan provider in the country.

The bank closed FY25 with the home loan book at Rs 8.31 trillion, registering 14.4 per cent growth over the previous financial year.

SBI has built a home loan portfolio in a gradual and steady manner over the years - from Rs 1 trillion milestone in March 2011 to Rs 9 trillion in November 2025.

Besides, the bank has been able to contain non-performing assets (NPAs) in the segment to less than 1 per cent due to its constant proactive monitoring. The bank closed FY25 with gross NPA in home loans to 0.72 per cent, one of the lowest in the banking sector.

Setty had earlier expressed optimism that the momentum in the RAM segment will drive 14 per cent overall credit growth during the current fiscal year.

Retail, Agriculture and MSME (RAM) segment, which is 67 per cent of the total loan portfolio, has also crossed the Rs 25 trillion milestone in September.

With the improvement in economic growth, SBI upped its credit growth target from earlier 12 per cent to 14 per cent for the ongoing financial year.

"We increased guidance on credit growth. We have revised it from 12 per cent to 14 per cent. We see a robust credit growth, particularly from the RAM segment, MSME is almost growing at 17-18 per cent and agriculture and retail is around 14 per cent," he had said.

Besides, he said, the bank is witnessing good growth in gold loan while express credit, which is unsecured personal loan, will have double-digit growth.