From BoB to Indian Bank, PSBs report double-digit credit growth in Q1

Bank of Baroda, Indian Bank lead state-owned lenders' strong credit expansion in April-June, while deposits grow at a slower pace

State-owned banks, including Bank of Baroda, Indian Bank, and Punjab and Sind Bank have reported double-digit growth in advances in April June quarter of 2025-26 (Q1FY26). Punjab National Bank’s credit growth was a little lower at 9.7 per cent. However, deposit growth of most state-owned banks lagged credit growth as has been the industry trend.

 

Smaller private-sector banks showed mixed growth, with CSB Bank posting high advances and deposit growth in Q1 but South Indian Bank, Tamilnad Mercantile Bank, and Karur Vysya Bank reporting decent growth in advances and deposits. According to latest Reserve Bank of India (RBI) data, credit growth in the system inched up to  9.6 per cent year-on-year (Y-o-Y) in the fortnight ended June 13.  During the same period, deposit growth stood at 10.4 per cent Y-o-Y, continuing to outpace credit growth.