Punjab National Bank and Central Bank of India Achieve Double-Digit Credit Growth in FY26

Original: PNB, Central Bank post double-digit credit growth in FY26, beat deposits

Business Standard•Apr 2, 20262 min

In a Nutshell

Punjab National Bank (PNB) and Central Bank of India reported impressive double-digit growth in credit for the financial year 2025-26, surpassing deposit growth. PNB's advances rose by 12.17% to ₹11.96 trillion, while Central Bank's advances surged by 18.9% to ₹3.45 trillion.

Key Points

01PNB's advances grew by 12.17% YoY to ₹11.96 trillion.
02Central Bank of India's advances increased by 18.9% YoY to ₹3.45 trillion.
03CSB Bank reported a 27% YoY growth in credit, driven by gold loans.
04Small finance banks also saw credit growth outpacing deposits.
05Mahindra & Mahindra Financial Services estimated a 6% YoY rise in overall disbursements.

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Full Summary

In the financial year 2025-26 (FY26), state-owned lenders Punjab National Bank (PNB) and Central Bank of India achieved significant credit growth, outpacing deposit growth. PNB reported a 12.17% year-on-year (YoY) increase in advances, reaching ₹11.96 trillion, while deposits grew by 9.14% to nearly ₹16.5 trillion. Central Bank of India experienced an even more remarkable 18.9% YoY growth in advances, totaling ₹3.45 trillion, with deposits increasing by 13.4% to ₹4.68 trillion. Private sector lender CSB Bank also performed well, with a 27% YoY rise in credit to ₹40,364 crore, largely driven by a 53% increase in gold loans. Small finance banks such as Ujjivan and Equitas reported credit growth rates of 26.6% and 21.6%, respectively, demonstrating a trend of credit growth outpacing deposits across the banking sector. Additionally, Mahindra & Mahindra Financial Services projected an 11% YoY rise in overall disbursements for the January-March quarter of FY26.

Key Figures

₹11.96 trillion

Total advances of Punjab National Bank

₹3.45 trillion

Total advances of Central Bank of India

27%

Credit growth percentage for CSB Bank

11%

Estimated rise in overall disbursements by Mahindra & Mahindra Financial Services

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Why It Matters

The robust credit growth indicates increased lending capacity, which could lead to more accessible loans for consumers and businesses. This may positively affect homebuyers and small businesses seeking financing.

Who is affected

homebuyers, small business owners, and consumers seeking loans

What to know

Potential borrowers should explore loan options as banks are likely to have more favorable terms due to increased lending.

FAQ

PNB's advances grew by 12.17% YoY to ₹11.96 trillion, while deposits increased by 9.14% YoY.

Central Bank of India recorded an 18.9% YoY growth in advances to ₹3.45 trillion and a 13.4% increase in deposits.

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