IndusInd Bank loan book grew in Q1, a first since accounting lapse

Private sector lender IndusInd Bank reported 3.3 per cent growth in its net advances for the quarter ended June 30 to ₹3.26 trillion — the first increase in its loan book after declining for four straight quarters. On a year-on-year (Y-o-Y) basis, however, the loan book contracted 2.3 per cent.

 

The bank has been reducing its loan book since the first quarter of the previous financial year (FY26) after it was hit by accounting lapses, which resulted in the resignation of the then chief executive officer (CEO) and deputy CEO.

 

According to the Q1 business update shared by the lender, deposits were up 4.5 per cent to ₹4.15 trillion. The share of low-cost deposits — current account and savings account (CASA) deposits — fell to 29.5 per cent at the end of June from 31.5 per cent a year ago.

 

Another private lender, RBL Bank, reported 21 per cent Y-o-Y growth in advances to ₹1.17 trillion, while deposits rose 11 per cent Y-o-Y to ₹1.25 trillion. IDBI Bank also posted 22 per cent Y-o-Y growth in net advances to ₹2.59 trillion, while deposits grew 10 per cent Y-o-Y to ₹3.25 trillion during the quarter.

 

Public sector lenders Union Bank of India, Central Bank of India and Canara Bank posted double-digit growth in advances in April-June of FY27.

 

Union Bank of India recorded 13.11 per cent Y-o-Y growth in domestic advances to ₹10.61 trillion. Deposits grew 3.5 per cent Y-o-Y to ₹12.83 trillion.

 

Canara Bank clocked 16.93 per cent Y-o-Y growth in advances to ₹12.07 trillion, while deposits grew 10.06 per cent Y-o-Y to ₹14.73 trillion.

 

Central Bank of India posted 28.77 per cent Y-o-Y growth in advances to ₹3.55 trillion, while deposits grew 11.7 per cent Y-o-Y to ₹4.78 trillion.