Q2 loan race: HDFC, Kotak Mahindra Bank shine; IndusInd deposit books fall

HDFC Bank, the country’s largest private-sector lender, reported a robust year-on-year (Y-o-Y) loan growth of 9.9 per cent for the July–September quarter (Q2) of 2025–26 (FY26), with period-end gross advances rising to ₹27.69 trillion. Sequentially, loans grew 4.4 per cent, or ₹1.15 trillion.

 

Period-end deposits stood at ₹28.01 trillion in Q2FY26, marking a 12.1 per cent Y-o-Y increase and a sequential rise of 1.4 per cent, or ₹37,400 crore.

 

The bank’s current account savings account (casa) deposits were roughly ₹9.49 trillion, up 7.4 per cent Y-o-Y, while time deposits rose 14.6 per cent Y-o-Y to about ₹18.52 trillion.

 

Following its first-quarter (Q1) results, the bank had indicated that loan growth would continue to strengthen, expressing confidence in expanding its advances in line with the system growth rate in FY26 and outpacing it in 2026-27. In Q1, HDFC Bank’s gross advances had risen 6.7 per cent Y-o-Y to ₹26.5 trillion.

 

According to the latest Reserve Bank of India data, system-level credit expanded 10.4 per cent Y-o-Y to ₹189 trillion, while deposits grew 9.5 per cent Y-o-Y to ₹235.45 trillion.

 

Meanwhile, Kotak Mahindra Bank reported a strong 15.8 per cent Y-o-Y growth in period-end advances to ₹4.62 trillion, with a 4 per cent sequential rise. Deposits grew 14.6 per cent Y-o-Y to ₹5.28 trillion and 3.1 per cent sequentially. Of this, period-end casa deposits stood at ₹2.23 trillion, up 11.2 per cent Y-o-Y and 6.7 per cent sequentially.

 

Among midsize banks, IDBI Bank posted a 15 per cent Y-o-Y rise in advances to ₹2.3 trillion and a 9 per cent increase in deposits to ₹3.03 trillion.

 

RBL Bank also reported healthy growth, with loans up 14 per cent Y-o-Y to ₹1.02 trillion and deposits up 8 per cent Y-o-Y to ₹1.16 trillion.

 

Bandhan Bank’s loan book expanded 7.2 per cent Y-o-Y to ₹1.4 trillion, while deposits rose 11 per cent to ₹1.57 trillion.

 

Yes Bank, on the other hand, saw subdued loan growth of 6.5 per cent Y-o-Y to ₹2.5 trillion, while deposits grew 7.1 per cent Y-o-Y to ₹2.96 trillion.

 

In contrast, IndusInd Bank’s loan and deposit books declined on a Y-o-Y basis. In Q2, loans fell 8 per cent Y-o-Y to ₹3.27 trillion, while deposits declined 5 per cent to ₹3.89 trillion. Both loans and deposits fell 2 per cent sequentially.

 

Separately, CSB Bank recorded one of the strongest performances, with loans rising 29 per cent Y-o-Y to ₹34,000 crore and deposits growing 25 per cent Y-o-Y to ₹39,000 crore.

 

State-owned Punjab National Bank posted 10.7 per cent Y-o-Y growth in domestic advances to ₹11.19 trillion as of September 30. Deposits grew 10.4 per cent Y-o-Y to ₹15.63 trillion. Bank of Baroda recorded 11.49 per cent Y-o-Y growth in domestic advances to ₹10.47 trillion, while domestic deposits were up 9.66 per cent Y-o-Y to ₹12.72 trillion.

 

Uco Bank’s advances rose 17.24 per cent Y-o-Y to ₹2.04 trillion, while domestic deposits increased 9.85 per cent Y-o-Y to ₹2.9 trillion. Union Bank of India reported 5.34 per cent Y-o-Y growth in domestic advances to ₹9.42 trillion. Deposits grew 1.89 per cent Y-o-Y to ₹12.34 trillion.