ReferIndia News PSU Banks Start FY27 with Strong Credit Growth, Loans Rise Up to 29% While Deposit Mobilisation Lags

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PSU Banks Start FY27 with Strong Credit Growth, Loans Rise Up to 29% While Deposit Mobilisation Lags

Published on: July 5, 2026, 5:04 p.m. | Source: Free Press Journal

Public sector banks began FY27 with strong loan growth, driven mainly by retail, agriculture and MSME lending. However, deposit growth remained slower, especially low-cost CASA deposits. This widened credit-deposit ratios across lenders, signalling strong credit demand but rising pressure on funding.

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