Government bank made a buzz in home loan market, private banks left behind, know the whole thing

In the second quarter of FY 2025 (April to June), Public Sector Banks (Government Bank) have given a tremendous performance to private banks by performing tremendously in the home loan market. According to the report of Krif High Mark, in June 2025, the home loan market of public sector banks reached 46.2%, which was 37.6% in the same period last year. In contrast, the stock of private banks declined to 28.2%, compared to 35.2% last year.

Big loan is getting priority

According to PTI news, it was also revealed that public sector banks are looking at the home loan of small ticket size (less than ₹ 35 lakh). At the same time, the share of a large loan of more than ₹ 75 lakh in the newly released home loan increased to 38%, compared to 33.6% last year. In contrast, the share in loans ranging from ₹ 5 lakh to ₹ 55 lakh was 31.2%, which was 34.7% last year.

Decline in issuing credit cards

This quarter declined by 28% in issuing new credit cards. A total of 40.6 lakh new cards were issued in April-June, due to the quality correction strategies of regulatory strictness, risk management and unsecured portfolio. However, the share in issuing credit cards of private banks has increased to 75%, compared to 71% last year.

What do experts say

Credit Information Company (CIC) chairman Sachin Seth said that there has been a decrease in growth in personal loans and credit cards such as unsecured lending, which reflects the need for risk management and regulatory vigilance between rising risks. Banks are now trying to balance between development and stability.

However, this rate is the highest in public sector banks. About 2.85% home loans have not been paid from 31 to 90 days. At the same time, private banks performed better, where the delicken was just 1.04%. This is a sign of strong underwriting and timely risk identity of private banks.

Latest business news