Public sector lender Punjab National Bank (PNB) reported a steady rise in credit growth for the September quarter, outpacing its deposit mobilisation. According to provisional figures released on Friday, PNB’s domestic advances grew 10.7% year-on-year to Rs 11.19 lakh crore, while domestic deposits increased 10.4% to Rs 15.63 lakh crore as of September 30.
On a global basis, the bank’s advances rose 10.3% and deposits climbed 10.9% from the same period last year, reflecting continued credit momentum amid improving borrower sentiment and stable liquidity.
Union Bank Focuses on Retail and MSME Lending
At Union Bank of India, loan growth remained moderate on a sequential basis. The lender’s domestic advances inched up 0.43% quarter-on-quarter, while deposits dipped 0.44% during the same period. Year-on-year, domestic advances were up 5.34% to Rs 9.42 lakh crore, and deposits rose 1.89% to Rs 12.34 lakh crore.
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However, the bank’s retail segment showed stronger traction. Domestic retail term deposits surged 14.1% and retail advances jumped 23.96% year-on-year. The bank’s RAM (Retail, Agriculture, and MSME) book grew 9.26%, underscoring its focus on granular lending and stable retail funding sources.
YES Bank Reports Consistent Growth, CASA Ratio Improves
Private sector lender YES Bank also posted healthy growth in the September quarter. Loans and advances increased 6.5% year-on-year to Rs 2.50 lakh crore, while deposits rose 7.1% to Rs 2.97 lakh crore. The bank’s CASA ratio improved to 33.8%, up from 32.8% in the previous quarter, indicating improved low-cost deposit mobilisation.
Sector View
The second quarter’s credit data shows a broader trend of steady lending growth across both public and private sector banks, supported by robust retail demand and a gradual pickup in corporate borrowing. However, deposit growth continues to lag credit expansion, signalling sustained competition for liquidity in the banking system.
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