Banks Credit Growth

Deposit competition, liquidity pressures and shifting household savings are weighing on bank margins, with a meaningful recovery expected only from the first half of FY27

Private bank CEOs say faster change, sector specialisation and new products like M&A financing are key as banks adapt to shifting corporate funding and growth needs

Six banks reporting Q3 FY26 business updates recorded double-digit year-on-year growth in advances, while deposit growth also remained healthy across public and private lenders

The state-owned Bank of Maharashtra (BoM) has reported a 16.8 per cent credit growth of Rs 2.54 lakh crore in the second quarter of this financial year. Total advances stood at Rs 2.17 lakh crore as of September 30, 2024, BoM said in a regulatory filing on Monday. The Pune-based lender reported a 12.1 per cent increase in total deposits to Rs 3.09 lakh crore, as against Rs 2.76 lakh crore at the end of the second quarter of the previous financial year. The bank's total business rose by 14.2 per cent to Rs 5.64 lakh crore, from over Rs 4.94 lakh crore in the year-ago period. The Current Account and Savings Account (CASA) of the bank stood at 50.35 per cent of total deposits, compared to 49.29 per cent at the end of the second quarter of the previous fiscal year. Credit deposit ratio of the bank rose from 71.7 per cent to 82 per cent at the end of September 2025, it added.

Credit growth may ease to 9.7-10.3 per cent in FY26, weighed down by the persisting high CD ratio and implementation of the proposed changes in the liquidity coverage ratio (LCR) framework, ICRA said in a report. ICRA has revised its credit growth estimate downwards to 10.5-11 per cent for FY25 from its earlier estimate of 11.6-12.5 per cent. In its recent report, ICRA highlighted that with the banks focusing on reducing their credit-to-deposit (CD) ratio and reducing their exposures to unsecured retail and non-banking financial companies (NBFCs), the overall credit growth has moderated in the past few months, it said. Consequently, credit and deposit growth has almost aligned with each other and ICRA expects the trend to continue, the rating agency said in the report. The persisting high interest rates and the slowdown in credit growth, especially towards high-yielding advances will impact the margins of the banking sector, it said. The capital ratios of several banks remain ...

Credit growth in the fortnight ended November 15 slowed to 11.15 per cent year-on-year (YoY), while deposit growth reached 11.21 per cent

Resource mobilisation challenge, regulatory nudge to weigh on growth

State-owned Bank of Maharashtra (BoM) on Friday said it has posted a credit growth of 16.31 per cent at Rs 2.03 lakh crore for the March quarter. The outstanding credit was Rs 1.75 lakh crore at the end of March 31, 2023, BoM said in a regulatory filing. The Pune-headquartered lender reported 15.63 per cent increase in total deposits to Rs 2.70 lakh crore as against Rs 2.34 lakh crore at the end of the fourth quarter of the previous financial year. During the quarter, it said, Current Account and Savings Account (CASA) declined to 52.73 per cent of the total deposits as against 53.39 per cent. The Credit Deposit (CD) ratio increased to 75.23 per cent at the end of March 31, 2024 as against 74.87 per cent in the year-ago period.

Private lenders with high loan-to-deposit ratio more vulnerable, says S&P

Bank deposits have gone up by 6.6 per cent to reach Rs 149.2 trillion during the April-August 2023 period, whereas the credit growth for the same period was 9.1 per cent

The share of their net profit in India's GVA hit a record high of 1%

The share of such loans declined between September 2020 and March 2022 in private banks and NBFCs but rose for public sector banks

Banks face pressure to raise deposits; weighted average call rate highest in 3 years

Among individual shares, Bank of Baroda, Canara Bank, State Bank of India, Indian Bank, and Union Bank of India soared between 21 per cent and 34 per cent during the period

Bankers said the rise in credit offtake now is partly driven by expansion in economic activity

Public sector and private banks have sanctioned over 193,000 loans via 924 camps in 405 districts from October 16-20, FM Nirmala Sitharaman says in Tweet

Markets do not view banks with low capital favourably and offer funds at a higher rate, says study done independently.

However, this is against the sanction of Rs 1.10 trillion under the 100 per cent ECLGS for micro, small and medium enterprises (MSMEs) till July 1.

With the financial year ending on March 31, small- and mid-sized companies are likely to default en masse, while rating agencies will have to mark them in the 'default' grade

Growth in advances to the services sector decelerated to 8.9% from 23.9% in January 2019