Private Banks Outpace Public Lenders in Deposit Growth Despite Sector Challenges

In the January-March quarter, private sector banks reported higher deposit growth rates compared to public sector banks, amid challenges in mobilising deposits. IDFC First Bank led the private sector with a 17.2% increase. Public banks like Bank of India showed comparable growth, while lending advances improved more in public than private banks.

Private sector banks have reported stronger deposit growth rates for the January-March quarter compared to their public sector counterparts, amid industry-wide challenges in deposit mobilisation.

According to data compiled from banks' provisional disclosures, private lenders achieved deposit growth between 12-17% in the fourth quarter of FY26. In contrast, public sector banks recorded growth between 2-14%.

Leading the private sector, IDFC First Bank posted a 17.2% increase. HDFC Bank is expected to maintain a 14% growth rate through FY28. Meanwhile, state-owned banks demonstrated stronger lending advances than the private sector, showing growth in the range of 12-22%.

(With inputs from agencies.)