Important StoriesSupreme Court rules YES Bank's AT1 bond write-off illegalSTT collection surges 52% in FY27 so far amid market volatility; net direct tax collection grows 13%India says first phase of US trade deal finalisedIndia's exports up 23% to $44.4 billion in Sep; trade deficit narrows to $30.21 billionWipro Q2 net profit slips 1.4% to ₹3,201 crore; revenue grows 9.1%Follow UsFOLLOW US ON WHATSAPPHomeGO BACK TO HOME THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. 5 public sector banks post 15-25% credit growth in Q2FY27 Credit demand remained firm across agriculture, industry, services and personal loans, according to the latest RBI sectoral data By BL Mumbai Bureau Updated - October 15, 2026 at 05:19 PM.×ShareWhatsAppXFacebookLinkedInMessengerRedditMailhttps://www.thehindubusinessline.com/money-and-banking/5-public-sector-banks-post-15-25-credit-growth-in-q2fy27/article71540475.eceCopy Five PSBs disclosed provisional business figures, with advances growing faster than deposits amid higher credit demand across key segments.

Public sector banks (PSBs) seem to have done fairly well on credit growth in the second quarter (Q2) of FY27, posting year-on-year (yoy) growth in the 15-25 per cent range, even as the gap between credit growth and deposit growth persists.

Deposit growth has ranged from 7 per cent to 14 per cent yoy, lagging credit growth, according to provisional business figures disclosed by five PSBs so far.

As per RBI’s latest data (August) on sectoral deployment of bank credit, the demand has been higher vis-a-vis the year-ago period across all four segments -- agriculture and allied activities, industry, services and personal loans.

Punjab National Bank (PNB) reported a 14.8 per cent yoy growth in gross advances and 9.9 per cent growth in total deposits. As at September-end 2026, the bank’s gross advances and total deposits stood at ₹13,42,693 crore and ₹17,77,097 crore, respectively.

Within gross advances and total deposits, PNB’s domestic advances and domestic deposits were up 12.59 per cent yoy (to stand at ₹12,58,583 crore as at September-end 2026) and 9.44 per cent yoy (to ₹17,11,696 crore), respectively.

As at September-end 2026, the gap between domestic credit and advances growth stood at 315 basis points. One basis point equals one-hundredth of a percentage point.

Union Bank of India (UBI) clocked an 18.53 per cent yoy growth in gross advances and 6.87 per cent growth in total deposits. As at September-end 2026, the bank’s gross advances and total deposits stood at ₹11,55,930 crore and ₹13,19,457 crore, respectively.

Within gross advances and total deposits, UBI’s domestic advances and domestic deposits were up 17.36 per cent yoy (to stand at ₹11,05,807 crore as at September-end 2026) and 6.88 per cent yoy (to ₹13,18,977 crore), respectively. As at September-end 2026, the gap between domestic credit and advances growth stood at 1,048 basis points.

The share of RAM (Retail, Agriculture and Micro, Small & Medium Enterprise) advances in UBI’s domestic advances declined to 57.47 per cent as at September-end 2026, from 58.82 per cent as at September-end 2025.

The proportion of CASA (Current Account, Savings Account) deposits in UBI’s domestic deposits improved to 34.93 per cent as at September-end 2026, up from 32.56 per cent as at September-end 2025.

Indian Bank reported a 16.6 per cent yoy growth in gross advances and 12.4 per cent growth in total deposits. As at September-end 2026, the bank’s gross advances and total deposits stood at ₹7.23 lakh crore and ₹8.73 lakh crore, respectively.

The share of CASA deposits in Indian Bank’s domestic deposits improved to 39.28 per cent as at September-end 2026, up from 38.87 per cent as at September-end 2025.

UCO Bank recorded a 24.68 per cent yoy growth in gross advances and 14.05 per cent growth in total deposits. As at September-end 2026, the bank’s gross advances and total deposits stood at ₹2.88 lakh crore and ₹3.49 lakh crore, respectively.

Punjab & Sind Bank reported a 19.37 per cent yoy growth in gross advances and 12.98 per cent growth in total deposits. As at September-end 2026, the bank’s gross advances and total deposits stood at ₹1,26,011 crore and ₹1,53,317 crore, respectively.

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