The Indian banking sector has reported strong loan and deposit growth in the July-September 2025 quarter, with both private and public sector lenders showing healthy numbers. 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 reported a 9% year-on-year growth in loans, which stood at Rs 27.9 lakh crore as of September 30, 2025. The bank’s total advances under management rose to Rs 28.6 lakh crore, up 8.9% from Rs 26.3 lakh crore a year earlier. Total deposits increased 15.1% to Rs 27.1 lakh crore, compared with Rs 23.5 lakh crore in the year-ago period.

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.

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.

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. Deposits increased 10.87% year-on-year to Rs 3.06 lakh crore, compared with Rs 2.76 lakh crore last year.

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, including revenue, net profit, and NPAs, will be released this month. The strong growth in both loans and deposits underscores continued traction across various segments, suggesting a positive outlook for the banking sector.

The growth in loans and deposits is a positive sign for the economy, as it indicates that businesses and individuals are taking on more credit, which can lead to increased economic activity. The banks’ ability to grow their loan books and deposits also suggests that they are able to effectively manage their risk and provide credit to those who need it.

Overall, the Q2 business updates from HDFC Bank, Kotak Mahindra Bank, IDBI Bank, and UCO Bank suggest that the banking sector is on a strong footing, with healthy growth in loans and deposits. This is a positive sign for the economy and suggests that the sector will continue to play a crucial role in supporting economic growth.

The performance of these banks is likely to have a positive impact on the overall economy, as they are major players in the financial sector. The growth in loans and deposits is expected to continue, driven by strong credit demand across various segments. The banks’ focus on managing risk and providing credit to those who need it is also expected to continue, which will help to support economic growth.

In conclusion, the Q2 business updates from major lenders suggest that the banking sector is on a strong footing, with healthy growth in loans and deposits. This is a positive sign for the economy and suggests that the sector will continue to play a crucial role in supporting economic growth. The strong growth in loans and deposits is expected to continue, driven by strong credit demand across various segments.