Public sector banks now control half of the Indian home loan market. The other significant trend is that big-ticket size home loans of Rs 75 lakh above enjoy almost 40% value share of the market.

Public sector banks have sharply increased their home loan market share, accounting for 50% of total originations by value in the September quarter compared to 41.9% a year ago and 35.8% two years back.

In the preceding quarter, the value share actually fell to 44.4% from 45.2% in Q4 of FY25, recent data by a credit information bureau has showed.

The state-run banks also saw a sharp rise in volume share, increasing to 45.2% in the September quarter from 38.9% a year ago and 40.5% in the preceding June quarter.

“Public sector banks continue to lead and expand their market share in both originations value and volume, with sharp growth between Q1 and Q2 FY26,” CRIF High Mark said.

Private banks saw a decline in their share across both metrics. Their share by value fell to 25.2% in the September quarter from 31.5% a year ago and 28.7% a quarter ago. Two years back, their share was at 38.6%.

Housing finance companies (HFCs) maintained a stable, range-bound share, indicating consistent originations trends. Their value share in home loans fell marginally to 19% in the September quarter but have been hovering around the 20% mark consistently.

“Public sector banks primarily focus on ticket size 75L+, contributing 43% of its originations (value) in Q2 FY26. Private banks also target ticket size 75L+ (46% of its Q2 FY26 originations value share), while HFCs predominantly cater to ticket size 5L-35L, accounting for 47% of originations (value) in the same period,” CRIF said.

The second trend, visible for a few quarters but more pronounced now, is the rise in value share of big-ticket home loans. Home loans of Rs 75 lakh above have increased their share to 39.4% of originations value in the September quarter compared to 35% a year ago, CRIF data showed.

The growth has continued over the previous quarters, from 36.6% in Q4 of FY25 and 37.3% in Q1 of FY26. Two years back, the value share was at 30.5%

The share of originations below Rs 75 lakh has declined, particularly in the sub-Rs 35 lakh category.

According to CRIF High Mark, the sub-Rs 35 lakh home loan segment share fell to 30% from 33.8% a year ago. In Q4 of FY25 it was 32.8% and in Q1 of FY26 at 32%. Two years back, the segment share was 36.6%.

The sub-Rs 5 lakh segment has been flat with a value share of 29.5% for the last three quarters.

In volume, the Rs 75 lakh above loans, however, represented only 9% of originations. “This indicated a concentration of value in fewer, higher-ticket loans,” CRIF said.

The Rs 5 lakh-35 lakh ticket size range constitutes 54.2% of originations volume, highlighting that smaller and mid-sized loans continue to dominate disbursal counts.

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 Rs 42.1 lakh crore as of September-end.

There was a 15.3% 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.

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.