PSU banks capture 50% of home loan originations, surpassing private rivals

State-run banks strengthened their lead as high-value loans drove market growth, even as overall retail credit expanded across segments

Public sector banks have expanded their market share in the competitive home loan market to 50 per cent of total originations by value in September, a report said on Monday.

The state-run banks have overtaken private sector banks in the market, the report by a credit information company said.

Nearly 40 per cent of the overall home loans were in the higher bracket of over Rs 75 lakh, Crif High Mark said, adding that the number of active loans added by just 3.3 per cent to 2.29 crore, which indicates an increase in average exposure per loan.

The overall home loan market, the largest in the retail segment, grew by 11.1 per cent year-on-year and 2.1 per cent quarter-on-quarter to Rs 42.1 lakh crore as of September-end, it said.

There was a 15.3 per cent increase in the overall consumption loans side to Rs 109.6 lakh crore, the report said, adding that a fast-paced growth in the gold segment led the segment.

"PSU banks have expanded their market leadership in both value and reach, and regulatory discipline is encouraging more responsible and broad-based financial inclusion across geographies and population segments," the company's chairman Sachin Seth said.

However, "subdued demand and seasonal factors" led to a slower growth in the consumer durables segment at 10.2 per cent year-on-year, the Crif report said.

From an asset quality perspective, there has been an improvement in the proportion of consumption loans overdue for between 31-180 days to 3 per cent in September from 3.1 per cent in June and 3.3 per cent in the year-ago period, it added.