Data▼ Bearish for Tamilnad Mercantile Bank
Credit offtake stays ahead of banks' deposit growth
The brief
- In Q2 FY27, advances at several banks grew significantly faster than deposit growth
- Tamilnad Mercantile Bank was among the smaller banks cited
- Faster credit growth than deposits can pressure bank funding costs and margins
Indian banks’ credit growth outpaces deposit growth
Several Indian banks reported credit growth outpacing deposit growth in the second quarter. Canara Bank reported domestic advances growth of 16.8% year-on-year and global business growth of 15.8%; a later report put its credit growth at 19.4%.
Monday, 5 October
- Credit offtake stays ahead of banks' deposit growth