Leading private sector banks in India, including HDFC Bank, Kotak Mahindra Bank (KMB), YES Bank, and AU Small Finance Bank, have released their provisional business numbers for the first quarter of FY27 (ended June 30, 2026). The data shows a healthy trend in the banking industry, with most players seeing double-digit growth in their loan books and deposit bases compared to the same period last year.

HDFC Bank, which is India's largest private lender, saw its total deposits grow by 14.7 percent to reach approximately 31,70,500 crore. Its gross advances (total loans given by the bank) grew even faster at 15.4 percent, reaching 30,61,000 crore. However, a key point for bankers to note is the shift in deposit types. The share of low-cost CASA (Current Account and Savings Account) deposits dropped from 33.90 percent to 32.35 percent, while more expensive time deposits (Fixed Deposits) increased to over 67 percent.

Kotak Mahindra Bank also reported strong performance with net advances rising 15.1 percent to 5,12,171 crore. Total deposits at the bank grew by 11.7 percent to stand at 5,72,822 crore. Similar to HDFC Bank, KMB saw a slight dip in its CASA ratio, which moved down to 40.32 percent. A higher CASA ratio is usually better for banks because it means they are getting funds at a lower cost.

YES Bank showed high momentum in its lending business, with loans and advances jumping 18.4 percent to 2,85,315 crore. Their deposits also grew steadily by 14.3 percent. The bank managed to keep its CASA ratio relatively stable, seeing only a tiny decrease to 32.7 percent. This indicates that the bank is being aggressive in providing new loans to customers while maintaining its funding pace.

AU Small Finance Bank (SFB) outperformed the larger players in terms of percentage growth. Their total deposits surged by 23.5 percent to 1,57,730 crore, while gross advances climbed by a massive 25.8 percent to 1,40,460 crore. As a small finance bank, these high growth rates suggest they are successfully capturing market share in their target segments, though their CASA ratio also saw a slight decline to 28.8 percent.

For bank officers and aspirants, these figures are a sign of a busy and growing economy. The high growth in advances means more credit is flowing to businesses and individuals. However, the consistent drop in CASA across these banks shows that customers are moving their money into Fixed Deposits to earn higher interest rates. This makes the cost of funds higher for banks, which could put pressure on their margins later in the year.

Looking ahead, the focus for retail bankers will likely be on attracting more Savings Account customers to improve the CASA mix. While the loan growth is encouraging, managing the cost of deposits will be the main challenge in the coming quarters. These provisional numbers set a positive tone for the banking sector's official earnings reports which will follow soon.