PSU Banks Outshine Private Peers in Q3 Loan Growth Amid GST Cuts, Festive Boost
Business
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Moneycontrol•06-01-2026, 17:53
PSU Banks Outshine Private Peers in Q3 Loan Growth Amid GST Cuts, Festive Boost
- •State-owned banks recorded higher loan growth (7-20%) than private banks (4-17%) in Q3FY26.
- •GST rationalisation in September 2025 and strong festive demand fueled the credit growth.
- •Overall bank credit growth remained robust at 10.21-11.87% in Oct-Dec FY26, as per RBI data.
- •Bank of Maharashtra and Central Bank of India led PSU loan growth; Jammu & Kashmir Bank, HDFC Bank, South Indian Bank topped private.
- •PSU banks also showed better deposit growth (3-15%) compared to private banks (3-12%), despite deposit mobilization challenges.
Why It Matters: PSU banks surpassed private peers in Q3FY26 loan and deposit growth, driven by GST cuts and festive demand.
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