The funding mix at state-owned banks is shifting as their loan business expands faster than deposits. To help finance that expansion, these lenders are turning more to borrowed funds rather than relying only on money collected from depositors.

The report presents a contrasting picture for private banks, where deposit growth is stronger. Their gains in market share come alongside the funding challenge facing public sector lenders. It does not identify individual banks or provide figures showing the size of the gap between deposit and credit growth.

For PSBs, the central concern is whether greater reliance on borrowing offers a sustainable way to support lending. The report raises that question, but does not specify the borrowing instruments involved, their cost or how long the current funding pattern has continued.

The distinction matters: expanding loans and building a deposit base are separate parts of a bank’s business, and they are not moving at the same pace here. The supplied information does not establish how the shift has affected profitability, lending rates or deposit pricing.