By Mohammad Haris,News18

Copyright news18

The country’s banking sector reported steady credit expansion in the July-September 2025 quarter (Q2 FY26), with both private and public sector lenders showing healthy loan and deposit growth. HDFC Bank, Kotak Mahindra Bank, IDBI Bank and UCO Bank all posted double-digit increases in their loan books, reflecting continued momentum in credit demand.
HDFC Bank: Loans Rise 9%, Deposits Up 15%
Private sector lender HDFC Bank reported a 9% year-on-year growth in loans, which stood at Rs 27.9 lakh crore as of September 30, 2025. In comparison, the loan book was Rs 25.6 lakh crore in the same quarter last year.
According to the bank’s regulatory filing, total advances under management rose to Rs 28.6 lakh crore, up 8.9% from Rs 26.3 lakh crore a year earlier. The lender’s total deposits increased 15.1% to Rs 27.1 lakh crore, compared with Rs 23.5 lakh crore in the year-ago period.
Average CASA deposits came in at Rs 8,770 billion, reflecting 8.5% growth from Rs 8,084 billion last year.
Kotak Mahindra Bank: Credit Grows Nearly 16%
Kotak Mahindra Bank posted a 15.8% rise in advances to Rs 4.62 lakh crore during Q2 FY26, compared with Rs 3.99 lakh crore in the same quarter of the previous fiscal.
The bank’s total deposits grew 14.6% to Rs 5.28 lakh crore, up from Rs 4.61 lakh crore a year earlier. The strong growth in both loans and deposits underscores continued traction across retail and corporate segments.
IDBI Bank: Loans Up 15%, Deposits Gain 9%
LIC-controlled IDBI Bank reported a 15% year-on-year growth in its credit book, with net advances rising to Rs 2.3 lakh crore as of September 30, 2025, compared with Rs 2 lakh crore last year.
Total deposits stood at Rs 3.03 lakh crore, up 9% from Rs 2.77 lakh crore a year ago. The bank’s total business rose 12% to Rs 5.33 lakh crore, while CASA deposits increased 4% to Rs 1.39 lakh crore.
UCO Bank: Total Business Expands 13.3% YoY
State-run UCO Bank reported a 13.29% year-on-year rise in total business to ₹5.37 lakh crore in the September 2025 quarter. Total advances grew 16.67% to Rs 2.31 lakh crore, from Rs 1.98 lakh crore in the same period last year. On a sequential basis, advances were up 2.67% from Rs 2.25 lakh crore in the June quarter.
Deposits increased 10.87% year-on-year to Rs 3.06 lakh crore, compared with Rs 2.76 lakh crore last year. Domestic advances rose 17.24% to Rs 2.04 lakh crore, while domestic deposits climbed 9.85% to Rs 2.90 lakh crore.
The lender’s domestic CASA ratio improved to 38.11% as of September 30, compared with 36.91% in the previous quarter. Its credit-to-deposit ratio stood at 75.56%, up from 71.77% a year earlier.
The latest updates from major lenders indicate that credit demand across retail, corporate and MSME segments remains strong in FY26 so far. Their Q2 results like revenue, net profit, NPAs will be released this month.