Among private banks, South Indian Bank’s overall advances and deposits rose 11 per cent and 12 per cent, respectively, to ₹96,765 crore and ₹1.18 lakh crore as at December-end.
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REUTERS/AJAY VERMA
Banks’ credit continued to grow faster than deposits in Q3 of FY26, according to provisional data reported by lenders to exchanges.
Punjab National Bank’s overall advances grew 11 per cent year-on-year (y-o-y) to ₹12.32 lakh crore, as at December-end, while deposits rose 9 per cent y-o-y to ₹16.60 lakh crore. On a sequential basis, the lender’s advances rose 5 per cent and deposits grew 3 per cent.
Union Bank of India’s Q3 advances were up 7 per cent y-o-y to ₹10.16 lakh crore, and deposits rose 3 per cent on-year to ₹12.22 lakh crore. Bank of India’s overall advances were up 14 per cent at ₹7.39 lakh crore, while deposits rose 12 per cent to ₹8.87 lakh crore.
Private banks
Among private banks, South Indian Bank’s overall advances and deposits rose 11 per cent and 12 per cent, respectively, to ₹96,765 crore and ₹1.18 lakh crore as at December-end.
CSB Bank’s overall loans rose 29 per cent y-o-y, to ₹37,208 crore, and deposits were up 21 per cent, at ₹40,460 crore. The lender’s loan against gold and gold jewellery rose 46 per cent y-o-y to ₹19,023 crore, while low-cost CASA deposits were up 3 per cent y-o-y at ₹8,316 crore.
Rating agency ICRA in November 2025 revised upwards its projection of credit expansion in FY26 to ₹19.5-21.0 trillion (10.7–11.5 per cent) from its earlier estimate of ₹19-20.5 trillion (10.4-11.3 per cent y-o-y growth), supported by improved demand post GST rate rationalisation, and liquidity boosts via the cash reserve ratio (CRR) cuts.
While banks remain cautious in lending to non-banking financial companies (NBFCs) and corporate demand is yet to see any meaningful revival, the growth is expected to be driven by the retail and micro, small and medium enterprise (MSME) segments, ICRA said.
Published on January 2, 2026
