‘PSU banks expand home loan market share to 50% of origination value in Sept’

Mumbai: 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.

“PSBs 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.