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Advances growth outpaces deposits at smaller private banks in Q1 FY27

South Indian Bank, Tamilnad Mercantile Bank and Dhanlaxmi Bank reported stronger growth in advances than deposits during the April-June quarter of FY27

South Indian Bank posted a 17.01 per cent year-on-year (Y-o-Y) increase in advances to ₹1.04 trillion, while deposits grew 11.39 per cent Y-o-Y to ₹1.26 trillion

Aathira Varier Mumbai

2 min read Last Updated : Jul 01 2026 | 8:33 PM IST

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Private sector lenders South Indian Bank, Tamilnad Mercantile Bank and Dhanlaxmi Bank reported growth in advances that outpaced deposit growth in the April-June quarter of FY27 (Q1FY27).

South Indian Bank posted a 17.01 per cent year-on-year (Y-o-Y) increase in advances to ₹1.04 trillion, while deposits grew 11.39 per cent Y-o-Y to ₹1.26 trillion. Low-cost current account and savings account (CASA) deposits rose 14.61 per cent Y-o-Y to ₹41,493 crore.

The bank also said that during the quarter ended 31 March 2026, it had technically written off loans worth ₹1,048 crore. Had this not been done, the Y-o-Y growth in advances as on 30 June 2026 would have been 18 per cent.

Tamilnad Mercantile Bank posted a 27.01 per cent Y-o-Y increase in advances to ₹57,306 crore as on 30 June 2026, while deposits grew 19.71 per cent Y-o-Y to ₹64,409 crore. CASA deposits increased 16.94 per cent Y-o-Y to ₹16,852 crore.

Dhanlaxmi Bank reported a 26.5 per cent Y-o-Y rise in advances to ₹15,785 crore, while deposits expanded 17.10 per cent Y-o-Y to ₹19,403 crore. CASA deposits increased 19.55 per cent Y-o-Y to ₹5,589 crore.