India's Banking Sector Sees Significant Credit and Deposit Growth

India's banking sector has observed substantial growth in both credit and deposits across various lending institutions, as shared in recent regulatory filings.

HDFC Bank, recognised as the largest private sector bank in India, reported a year-on-year increase of 14.4 per cent in deposits and a 12 per cent rise in gross advances for the financial year ending March 31, 2026. The bank's total deposits reached ₹31,05,500 crore while gross advances stood at ₹29,60,000 crore. The portion of low-cost current account and savings account (CASA) deposits slightly decreased to 34.14 per cent from 34.79 per cent the previous year.

In a notable achievement, Bank of Baroda (BoB) crossed the ₹30 lakh crore landmark in global business, which encompasses both deposits and advances, for the first time. The bank's global business saw an impressive 13.93 per cent rise year-on-year, amounting to ₹30,78,854 crore as of March-end 2026. BoB's global deposits reached ₹16,48,650 crore, reflecting a 12 per cent year-on-year growth, while global advances grew by 16.23 per cent to ₹14,30,204 crore during the same period.

Among the growth drivers, domestic deposits and advances also exhibited strong performance, with domestic deposits rising by 12.83 per cent to ₹14,01,497 crore, and domestic advances increasing by 14.56 per cent to ₹11,69,804 crore. Notably, domestic retail advances surged by 17.93 per cent, culminating at ₹3,02,657 crore.

Punjab National Bank (PNB) reported a 10.79 per cent increase in its global business, with total figures reaching ₹29,72,896 crore as at March-end 2026. The bank's global deposits recorded a growth of 9.25 per cent to ₹17,11,476 crore, while global advances rose by 12.97 per cent to ₹12,61,420 crore.

Union Bank of India also demonstrated positive results, with a 5.79 per cent increase in global business, amounting to ₹23,85,679 crore. The bank's global deposits edged up by 2.72 per cent, and global advances advanced by 9.76 per cent.

Smaller lenders like Bandhan Bank and AU Small Finance Bank reported robust growth as well. Bandhan Bank achieved a 10 per cent increase in total deposits and a 12.6 per cent growth in loans and advances, while AU Small Finance Bank recorded an impressive 22.8 per cent rise in total deposits alongside a 21.3 per cent increase in its gross loan portfolio.

These figures suggest a growing demand for credit, especially within the retail and micro, small, and medium enterprise segments. The ongoing trends point towards a robust banking climate within India, with lenders continuing to expand their outreach and services to cater to diverse financial needs.