11:10 AM IST – State Bank of India (SBI), the country’s largest PSU Bank, has achieved a major milestone. Its home loan portfolio has crossed ₹9 lakh crore in November, reflecting strong demand for housing and the bank’s leadership in the mortgage market.
But this is not the only big number. As per PTI news, SBI’s RAM portfolio. Has now crossed ₹25 lakh crore as of September. This now accounts for 67% of the total loan book. It is showing a major shift towards the real economy and everyday borrowers.
RAM means:
- Retail includes home loans, personal loans and small-ticket consumer credit.
- Agriculture covers farm and rural lending.
- MSME supports small and medium enterprises — the backbone of job creation in India.
SBI Chairman C. S. Setty said that strong traction in these segments has encouraged the bank to increase its credit growth target to 14% for the current financial year, compared to the earlier target of 12%.
SBI Loan Growth Snapshot – In a Simple Table
| Segment | Latest Update | What It Means |
|---|---|---|
| Home Loans | ₹9 lakh+ crore | Housing demand and SBI’s large customer reach |
| RAM Portfolio | ₹25 lakh+ crore | 67% of total loans now from everyday India |
| MSME Loans | Growing 17–18% | Small business confidence coming back |
| Retail + Agriculture | Growing ~14% | Stable and steady lending activity |
| Corporate Loans | 7.1% growth in Q2 | Slowly improving after dull period |
| Overall Credit Growth Target | 14% | Higher confidence for FY25 |
Why SBI Is Focusing More on RAM
SBI’s loan strategy is becoming more common people-first. Retail, farmers and small businesses offer:
- More stable credit demand
- Lower concentration risks than large corporate loans
- Better recovery and diversified repayments
- Long-term customer relationships that support deposits and cross-selling
Demand for gold loans is also rising from households, and silver loan demands will start soon in 2026, while express credit (unsecured personal loans) is showing double-digit growth, especially in urban customers.
Meanwhile, corporate lending is improving slowly but will take more time to reach pre-pandemic strength.
Strong Capital and Profit Support Growth
Even with aggressive expansion, SBI does not expect to raise new equity capital. Its capital adequacy ratio is around 15%, which is comfortable under current regulations.
The bank also expects to maintain its ~3% Net Interest Margin (NIM), even after the recent 25 bps cut in the repo rate to 5.25%. Cheaper loans may boost demand further.
This gives SBI the confidence to fund ₹12 lakh crore+ of future loan growth without additional capital raising.
What This Means for Borrowers & Investors (Easemoney View)
- Homebuyers: More lending means better choices, faster approvals, and possibly improved offers from banks. (In 2026, the buyer can find lower rates if no fluctuations happen)
- Small businesses: Easier access to loans for expansion, working capital, and digital upgrades.
- Farmers: A more organised sector credit reduces dependence on informal lenders.
- Investors: RAM-led lending brings stability to earnings and lowers big corporate risk exposure.
SBI’s message is clear: Growth is stronger when every Indian grows. The data clearly shows, SBI is betting on India’s middle class, farmers and small business owners, not just big companies.
