State Bank of India (SBI) Chairman C.S. Setty has called for a critical re-evaluation of India's affordable housing definition, citing a significant increase in average home loan sizes and general property appreciation across major markets. This recommendation follows the bank's fourth-quarter earnings report, where Setty highlighted the growing disparity between current definitions and market realities.
Rising Home Loan Averages Drive Review Demand
Setty noted that the average ticket size for home loans disbursed by SBI has climbed to approximately Rs 51 lakh. This represents a substantial rise from the Rs 35-40 lakh average recorded just two years prior. "The composition of affordable homes and the definition of affordable homes is required to be changed now," Setty stated, emphasizing that the escalating cost of housing necessitates an updated framework.
The SBI Chairman confirmed that this issue has been formally communicated to the government as part of ongoing discussions regarding India's housing sector. The bank's home loan portfolio itself saw a robust 13.66 percent year-on-year growth during the last fiscal year, securing a 28.1 percent market share among all Scheduled Commercial Banks.
Current Affordable Housing Criteria
According to a report published by NITI Aayog in December 2025, the existing definition classifies units as affordable based on both carpet area and value:
- In metropolitan cities, units with a carpet area of up to 60 square meters and a value not exceeding Rs 60 lakh are considered affordable.
- For non-metropolitan areas, the criteria extend to units with a carpet area of up to 90 square meters, provided their value does not exceed Rs 45 lakh.
Setty's proposal suggests these thresholds are increasingly out of sync with contemporary property prices, making it harder for a broader segment of the population to qualify for affordable housing benefits and schemes.
SBI's Financial Performance
On May 8, SBI announced a net profit of Rs 19,684 crore for the January-March quarter, marking a 5.6 percent increase from Rs 18,643 crore in the same period last year. The bank's net interest income also grew by 4.1 percent year-on-year, reaching Rs 44,380 crore from Rs 42,618 crore.