Affordable housing push falters as PSU banks meet just a third of FY26 goals

“Affordable housing is a relatively small-ticket lending product. First, the supply of affordable houses is low due to pricing constraints. Further, the borrowing customers also need greater assessment since most of them would be informally employed,” said Sanjay Agarwal, senior director, CareEdge Ratings. “Hence, for the banks to be able to come out with a viable proposition, which enables lending to weaker sections for long tenures, creates its own difficulties. As a result, it could be difficult for the banks to achieve the given target. However, as banks strengthen their technology and assessment processes, it would be simpler for them.”