The Economic Times

Deposits win for private banks, loans trophy for PSBs: Q1 throws up opposing trends; private growth seen as healthier

Private banks saw stronger deposit growth than public sector lenders in the June quarter. Public sector banks, however, achieved faster credit expansion during the same period. This divergence raises concerns about funding sustainability for state-run institutions. Private banks have steadily gained market share in deposits over a decade. Credit growth between the two bank types showed convergence in the recent quarter.