HDFC Bank, Kotak Mahindra Bank report double-digit growth in loans, deposits in Q3

According to CRISIL Ratings, bank credit is likely to grow 11-12 per cent in current fiscal, after a slower first half, owing to government and regulatory support, and a pick-up in consumption

HDFC Bank and Kotak Mahindra Bank, both private sector lenders, reported significant year-on-year increases in advances and deposits for Q3FY26, while YES Bank showed more modest growth in these areas.

HDFC Bank saw a 12% annual rise in both advances and deposits, reaching ₹28.44 lakh crore and ₹28.59 lakh crore respectively by December end. Despite this performance, the bank’s shares dipped 2% to ₹978 on the BSE amid concerns about slower-than-anticipated deposit expansion. The bank’s leadership maintains that loan growth will align with industry benchmarks this fiscal year while aiming to surpass sector averages next financial year.

Kotak Mahindra Bank posted stronger growth metrics, with net advances climbing 16% to ₹4.80 lakh crore and deposits increasing 15% to ₹5.42 lakh crore during the same period.

YES Bank, by contrast, reported more moderate growth – a 5% increase in advances (₹2.57 lakh crore) and 6% deposit growth (₹2.92 lakh crore).

Industry outlook from CRISIL Ratings projects an 11-12% credit expansion across banks this financial year, buoyed by government initiatives, supportive regulations, and increased consumer spending. This would represent an improvement over the previous fiscal year and exceed the ten-year growth average.

Published on January 5, 2026