MUMBAI: Driven by the festive demand and the GST rate cut-induced shopping spree, both public and private sector banks have turned the tide in the third quarter, clocking double-digit growth in advances as well as deposit accretion.
A dozen banks have reported their business updates for the December quarter over the weekend, recording double-digit growth in their loan and deposit books compared to the same period a year ago.
The second largest state-owned lender Bank of Baroda said its domestic business increased 3.11% sequentially and 9.09% annually to Rs 27.65 trillion. On the liabilities side, global deposits grew 2.68% on-quarter and 8.54% on-year to Rs 16.60 trillion.
The third largest state-owned lender Punjab National Bank reported a 10.15% rise in domestic advances to Rs 11.68 trillion in Q3. The smaller Bank of India said its loans grew at a much faster rate of 15.07% to Rs 6.29 trillion, while the mid-sized state-run lender Uco Bank said its advances grew 16.3% to Rs 2.15 trillion.
Among other public sector lenders, the Chennai-based Indian Bank said its advances grew 14.5% to Rs 6.4 trillion in the reporting quarter, while its Punjab-based peer Punjab & Sind Bank said its advances grew 15.2% to Rs 0.9 trillion.
Among private sector lenders, privatization-bound IDBI Bank said its net advances increased 15% from Rs 2.07 trillion in the previous quarter to Rs 2.39 trillion in the December quarter and the total business expanded to Rs 5.47 trillion, reflecting a robust 12% on-year increase from Rs 4.89 trillion in December 2024.
Tamil Nadu based Karur Vysya bank said its advances grew 17.1% to Rs 1 trillion, while the Kerala-based South Indian Bank reported an 11.3% increase in advances to Rs 96,765 crore.
In an exchange filing, the bank said during the December quarter, it wrote off Rs 900 crore. “Had this not been done, the annualized loan growth would have been 12.43%,” the Thrissur-based bank said.
Another Kerala-based lender CSB Bank has the sharpest spike in loan demand so far in the season logging in a full 29% annualized growth in advances to Rs 37,208 crore, with nearly half of its loan book coming from advances against gold jewellery, which stood at Rs 19,023 crore, up 46% from a year ago.
Tamilnad Mercantile Bank posted a 16.3% rise in advances to Rs 50,763 crore while Mumbai-based RBL Bank, which got a $3 billon equity infusion recently from Emirates NBD, said its gross advances increasing 13% on-year to Rs 1.04 trillion.
Meanwhile, banks also saw robust growth during the quarter. BoB said its domestic deposits rose 2.14% sequentially and 8.32% on-year to Rs 15.97 trillion, PNB said its domestic deposits increased 8.32% to Rs 15.97 trillion, Bank of India reported a 12.8% rise in deposits at Rs 7.65 trillion and Uco Bank said its deposits rose 10.91% to Rs 2.92 trillion.
Indian Bank also said its deposits jumped 12.5% to Rs 3.1 trillion during the reporting quarter while Punjab & Sind Bank’s deposit accretion inched up 9.3% to Rs 1.1 trillion.
Among private sector lenders, IDBI Bank said its total deposits grew to Rs 3.07 trillion, up 9% from Rs 2.82 trillion and from Rs 3.03 trillion in September 2025. Of this, the low-cost Casa deposits declined to Rs 1.36 trillion, down 3% from Rs 1.39 trillion and from Rs 1.31 trillion in September 2025.
Reacting to the news, its stocks rallied 13% Friday, the highest level in over 11 years and ended 10.45% higher at Rs 114.60.
South Indian Bank’s deposits grew 12.17% to Rs 1.18 trillion, and Tamilnad Mercantile Bank recorded a 12.53% increase to Rs 56,707 crore, while CSB Bank reported a massive 21% jump rise in deposits to Rs 40,460 crore and Karur Vysya said its liabilities rose at higher 15.6% to Rs 1.1 trillion.
RBL Bank also announced a strong Q3 provisional business update, with total deposits rising 12% on-year to Rs 1.19 trillion. Deposits below Rs 3 crore showed a notable 15% on-year growth.