State Bank of India’s average home loan ticket size has jumped to Rs 51 lakh from Rs 35-40 lakh a couple of years ago, prompting its chairman CS Setty to call for a review of the definition of affordable housing.

Since home prices have seen a sharp rise in prices across the country, there is a need to revisit the concept of what qualifies as an affordable home. 

"...the definition of affordable homes is required to be changed. This is what we have been telling the government of India," Setty told reporters in a post-earnings interaction after the country’s largest lender announced its fourth-quarter results.

Pointing out that the bank’s average home loan size has risen to Rs 51 lakh crore from Rs 35-40 lakh crore two years ago, Setty said Friday the cost of housing is going up and there is a need to change the concept of affordable homes.

SBI has the highest market share in the affordable housing segment, which is limited by carpet size and a value not exceeding Rs 45 lakh. In metro cities, the affordable housing units have a carpet area of up to 60 square metres and in non-metropolitan areas this is restricted to 90 square metres.  

Lenders can treat affordable housing loans as priority sector lending and are also given tax sops to incentivise them in growing this segment.

In FY26, SBI reported a 13.66% year-on-year rise in its housing finance portfolio to Rs 9.44 lakh crore as on 31 March 2026. Earlier, Setty had said the bank's home loan portfolio would hit the Rs 10 lakh crore milestone in FY27.

The bank has a market share of 28.1% in home loans.