13:54
Higher working capital loan demand amid rising input costs helped commercial banks report healthy growth in advances in the April-June quarter (Q1) of 2026-27 (FY27).
Among the large private-sector banks that announced provisional business updates over the weekend, Axis Bank led its peers in both loan and deposit growth, with each expanding more than 18 per cent year-on-year (Y-o-Y).
India's third-largest private-sector lender reported advances of Rs 12.73 trillion as on June 30, up 18.8 per cent Y-o-Y and 2.3 per cent sequentially.
Deposits rose 18.2 per cent to Rs 13.73 trillion, while term deposits continued to drive liability growth, increasing 23 per cent Y-o-Y and 5.5 per cent sequentially to Rs 8.5 trillion.
HDFC Bank, the country's largest private sector lender, reported gross advances of Rs 30.61 trillion, up 15.4 per cent Y-o-Y, while deposits rose 14.7 per cent to Rs 1.71 trillion. On a sequential basis, advances grew 3.4 per cent and deposits 2.1 per cent.
Kotak Mahindra Bank reported net advances of Rs 5.12 trillion, up 15.1 per cent Y-o-Y and 3.2 per cent sequentially. Deposit growth lagged, with deposits rising 11.7 per cent Y-o-Y to Rs 5.16 trillion and remaining largely flat sequentially, up 0.1 per cent.
The strong performance comes against the backdrop of a widening credit-deposit gap in the banking system. Reserve Bank of India data showed bank credit grew 17.7 per cent Y-o-Y in the fortnight ended June 15 against 12 per cent growth in deposits, leaving a gap of 570 basis points.
-- Subrata Panda, Business Standard
