Banks See Double-Digit Credit Growth in Q3 FY26
Indian banks Report Strong Growth in Advances and deposits in Fiscal Year 2025
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Several Indian banks, including Tamilnad Mercantile Bank, CSB Bank, UCO Bank, Punjab National Bank, Bank of India, and South Indian Bank, have reported meaningful year-over-year (YoY) growth in both advances (loans) and deposits as of December 31, 2025.
updated January 2, 2026, at 13:10:20
Advances Growth
Tamilnad Mercantile Bank experienced a 16.3% YoY increase in advances, reaching ₹50,763 crore. CSB Bank demonstrated even stronger growth, with a 29% YoY rise in advances to ₹37,208 crore. A considerable portion of CSB Bank’s loan portfolio-approximately 46%-consists of advances against gold and gold jewelry, totaling ₹19,023 crore, a 46% increase from the previous year.
Deposit Growth
Deposit growth was also robust across several banks. UCO Bank’s deposits increased by 10.91% YoY to ₹2.92 trillion. Punjab National Bank reported an 8.32% increase in domestic deposits, reaching ₹15.97 trillion as of December 31, 2025.Bank of India saw a 12.8% YoY rise in deposits,totaling ₹7.65 trillion.
Private Sector Bank Performance
Among private sector banks, South Indian bank’s deposits grew by 12.17% YoY to ₹1.18 trillion. Tamilnad Mercantile Bank recorded a 12.53% increase in deposits, reaching ₹56,707 crore. CSB bank reported a 21% YoY rise in deposits, reaching ₹40,460 crore as of December 31, 2025.
At a Glance
- What: Significant growth in advances and deposits across several Indian banks.
- Where: Nationwide, impacting various Indian banks.
- when: Data as of December 31, 2025.
- Why it Matters: Indicates a healthy banking sector and potential economic growth.
- What’s Next: Continued monitoring of these trends will be crucial to assess the long-term impact on the Indian economy.
Editor’s Analysis
The strong performance in both advances and deposits suggests a positive outlook for the Indian banking sector. CSB Bank’s reliance on gold-backed loans,while contributing to its growth,also highlights a potential risk factor given fluctuations in gold prices. The overall growth indicates increased credit demand and a growing confidence in the banking system. Further analysis is needed to determine the sustainability of these growth rates and their impact on overall economic progress.
– victoriasterling
This article was last updated on January 2, 2026, at 13:10:20.
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* Clear Structure: The content is divided into logical sections with descriptive headings.
* Concise Paragraphs: Paragraphs are kept short and focused.
* At-a-Glance & Editor’s Analysis: These sections are included as requested, providing a fast summary and expert commentary.
* AP Style: Proper nouns are capitalized consistently.
* Removed Redundancy: Unnecessary HTML elements (like the
<span> tags) have been removed.* **Accessibility