Archive · 3 Jan 2026
Banks Report Double-Digit Q3 Growth
Several banks in India have reported their financial results for the December quarter.
Punjab National Bank (PNB) saw a 10.1% year-on-year growth in loans and an 8.3% growth in deposits.
Other banks like Indian Bank and Bank of India also reported double-digit growth in loans.
Private banks such as Tamilnad Mercantile Bank and CSB Bank performed even better with higher loan growth rates.
Union Bank of India had the lowest growth in loans and deposits.
South Indian Bank reported an 11.3% loan growth but had to write off Rs 900 crore, which affected their year-on-year credit growth.
Experts say banks are moving to higher-yield loans to improve their profits, but deposit growth is still a challenge.
The festive season and GST reforms helped boost the economy, but this effect is expected to taper off.
Punjab National Bank reported a 10.1% year-on-year growth in advances and an 8.3% growth in deposits for Q3FY26.
Indian Bank and Bank of India reported double-digit credit growth of 14.5% and 15.1%, respectively.
Private banks like Tamilnad Mercantile Bank and CSB Bank outperformed with advances growth of 16.3% and 28.7%, respectively.
Union Bank of India saw the lowest growth in loans (7.4%) and deposits (3.4%).
South Indian Bank reported an 11.3% loan growth but had a Rs 900 crore technical write-off affecting their year-on-year credit growth.
- Who
- Various banks including Punjab National Bank, Indian Bank, Bank of India, Tamilnad Mercantile Bank, CSB Bank, Union Bank of India, and South Indian Bank
- What
- Reported double-digit growth in advances and deposits for the December quarter
- When
- December quarter (Q3FY26)
- Where
- India
- Why
- To update on financial growth and performance
Optimistic View
Cautious View
Deposit Growth
Optimistic View
Deposit growth is expected to remain healthy, with 7 out of 10 banks reporting double-digit growth.
Cautious View
Deposit growth is largely sluggish, and garnering low-cost CASA deposits will continue to be a challenge for banks.
Loan Growth
Optimistic View
Banks are shifting to higher-yield loan segments, which will modestly improve their lending yields.
Cautious View
Treasury income is expected to remain subdued in the quarter due to hardening of yields.
- PNB Advances Growth
- 10.1% year-on-year, 4.5% over September quarter
- PNB Deposit Growth
- 8.3%
- PNB Credit-Deposit Ratio
- 74.21%
- Indian Bank Credit Growth
- 14.5%
- Bank of India Credit Growth
- 15.1%
- Tamilnad Mercantile Bank Advances Growth
- 16.3%
- CSB Bank Advances Growth
- 28.7%
- Union Bank of India Loan Growth
- 7.4%
- Union Bank of India CASA Ratio
- 33.95%
- South Indian Bank Loan Growth
- 11.3%
- South Indian Bank Technical Write-Off
- Rs 900 crore
- Banks with Double-Digit Deposit Growth
- 7 out of 10
Sources
PNB Q3 update: Advances growth outpaces deposits as global biz nears ₹29 lakh crore
Banks’ credit growth outpaces deposit growth in Q3 FY26
Banks see double-digit growth for Q3FY26
Punjab National Bank's Global Business Grows 9.57% To ₹28.92 Lakh Crore In Q3
