PSU Banks Expand Home Loan Market Share to 50% of Origination Value in Sep: Report

Public sector banks have expanded their market share in the competitive home loan market to 50% 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% of the overall home loans were in the higher bracket of over ₹75 lakh, Crif High Mark said, adding that the number of active loans added by just 3.3% 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% year-on-year and 2.1% quarter-on-quarter to ₹42.1 lakh crore as of September-end, it said.

There was a 15.3% increase in the overall consumption loans side to ₹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% 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% in September from 3.1% in June and 3.3% in the year-ago period, it added.