Indian banks see credit growth outpace deposits in second quarter

Credit growth outpaced deposit growth in the second quarter for most banks that released provisional business data on Thursday.

From large lenders such as Canara Bank and Indian Bank to smaller ones such as Capital Small Finance Bank, the trend remained the same, with South Indian Bank being an exception.

Canara Bank reported 19.4% year-on-year credit growth to ₹13.74 lakh crore at the end of September, while deposits grew 13.1% to ₹16.97 lakh crore. Indian Bank’s credit outstanding grew 16.6% to ₹7.23 lakh crore, while deposit growth stood at 12.4% at ₹8.73 lakh crore. Deposit growth lagged for a majority of these banks despite massive inflows into foreign currency non-resident bank (FCNR-B) deposits, as banks used this cushion to shed high-cost bulk deposits.

Bank wise business updates: