SBI's Home Loans Drive Significant Growth

In a surprising turn of events, State Bank of India (SBI) has outperformed HDFC Bank in the first quarter lending, with home loans being the primary growth driver. SBI's outstanding credit surged by 15% to Rs 8.5 lakh crore at June-end, up from Rs 7.4 lakh crore in June 2024.

Comparing Growth: SBI vs. HDFC

Meanwhile, HDFC Bank's home loans saw a modest 7% increase to Rs 8.4 lakh crore in June 2025. The bank cited intense price competition as a reason for its sluggish growth.

SBI's Market Share and Future Outlook

SBI's mortgage book growth was around Rs 20,000 crore in Q1, contributing to nearly 35% of the total home loans added by banks during the quarter. SBI chairman C S Setty highlighted the bank's focus on high-return segments like retail mortgages and secured small business credit, predicting a pickup in unsecured personal and auto loans in the second half.

Challenges and Opportunities

Setty also addressed the impact of supply chain disruptions and tariff orders on certain sectors but reassured that these pose no systemic risk to SBI, given its minimal exposure.