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Economic Times
12-07-2025
- Business
- Economic Times
Public sector banks surge to 43% market share in home loans, overtaking private lenders
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Public sector banks have emerged as the largest financiers of new mortgages over the past four years, drastically altering the market dynamics in the home-loan segment and forcing a reshuffle of the industry leader-board earlier tilted toward private the past four years, governmentowned banks have steadily accelerated market share, data published by credit bureau CRIF Highmark showed. For PSBs, the share of new home loans by value rose to 43% in FY25 from 34% in FY22. Analysts attribute the expansion in the share of business for public-sector lenders to competitive rates and government initiatives to boost home per the June 2025 Financial Stability Report (FSR) of the central bank, in FY25 the overall credit growth of PSU banks outpaced that of private banks after more than a decade, with home loans being among the primary growth drivers in the retail loans pioneer Housing Development Finance Corp (HDFC), merged two summers ago into the bank it spawned and gave its name, had begun India's financed home-ownership culture in the 1970s, and had a dominant share for decades in the mortgage business, where mainstream lenders were relatively late led largely by private lenders, started pushing for home loans only in the new millennium, as services-sector pay packets surged through the first decade of liberalization and fresh housing starts in India's big cities became a keenly tracked metric for both financiers and dependent industries, such as cement, steel, hardware and the data also showed that private banks' share fell to 29.8% from 42.6% in the period under consideration.
Time of India
12-07-2025
- Business
- Time of India
Public sector banks surge to 43% market share in home loans, overtaking private lenders
Public sector banks have emerged as the largest financiers of new mortgages over the past four years, drastically altering the market dynamics in the home-loan segment and forcing a reshuffle of the industry leader-board earlier tilted toward private lenders. Over the past four years, governmentowned banks have steadily accelerated market share, data published by credit bureau CRIF Highmark showed. For PSBs, the share of new home loans by value rose to 43% in FY25 from 34% in FY22. Analysts attribute the expansion in the share of business for public-sector lenders to competitive rates and government initiatives to boost home ownership. As per the June 2025 Financial Stability Report (FSR) of the central bank, in FY25 the overall credit growth of PSU banks outpaced that of private banks after more than a decade, with home loans being among the primary growth drivers in the retail loans category. Mortgage pioneer Housing Development Finance Corp (HDFC), merged two summers ago into the bank it spawned and gave its name, had begun India's financed home-ownership culture in the 1970s, and had a dominant share for decades in the mortgage business, where mainstream lenders were relatively late entrants. Banks, led largely by private lenders, started pushing for home loans only in the new millennium, as services-sector pay packets surged through the first decade of liberalization and fresh housing starts in India's big cities became a keenly tracked metric for both financiers and dependent industries, such as cement, steel, hardware and electricals. Meanwhile, the data also showed that private banks' share fell to 29.8% from 42.6% in the period under consideration.
India Gazette
13-06-2025
- Business
- India Gazette
Microfinance sector in India shows early signs of stress abating: Macquarie
ANI 13 Jun 2025, 16:39 GMT+10 New Delhi [India], June 13 (ANI): The Indian microfinance (MFI) sector is showing early signals of abating stress, due to the positive outlook based on improving portfolio quality data from CRIF Highmark for Q4 FY25 and April 2025, as revealed in a recent report from Highmark, with its extensive database, is one of India's leading credit information providers, certified and licensed by the Reserve Bank of India (RBI).Macquarie's call with the CRIF Highmark revealed that top microfinance institutions (MFIs) have undertaken aggressive write-offs and cleaned their books, leading to better portfolio selection through improved origination data. This is expected to result in a downward trend for FY26 delinquencies and credit a self-regulatory body, has played a crucial role by tightening guidelines on loan limits and the number of lenders, fostering discipline and improving portfolio origination in the MFI space. Consequently, there's been a gradual increase in the share of borrowers with two or fewer the MFI sector shows improvement, CRIF Highmark data indicates that stress has spread to other loan categories like auto and business loans, which have seen an increase in delinquencies and portfolio at risk (PAR) among states, Tamil Nadu is exhibiting some early signs of stress, and Karnataka has experienced a significant rise in delinquency. However, Bihar's MFI book remains stable and is the largest in the sector. The report says these regional trends will be important to monitor, ahead of the October/November 2025 the four main categories of microfinance providers (banks, NBFCs, NBFC-MFIs, and small finance banks), NBFCs have demonstrated the best portfolio quality. This is attributed to their use of digital sourcing, superior loan underwriting, and effective selection of segments and ahead, long-term growth for the sector is expected to be subdued due to prudent practices informed by past experiences. A welcome move by the RBI to reduce qualifying assets for the MFI space from 75 per cent to 60 per cent will help MFI players diversify their asset base and mitigate concentration risk. (ANI)
