HDFC, Kotak, IDBI, and UCO Bank Report Strong Q2 FY26 Loan and Deposit Growth

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Synopsis: India’s banking sector reported solid Q2 FY26 (Jul–Sep 2025) updates.
HDFC Bank clocked ~9% loan growth with strong deposit accretion;
Kotak Mahindra Bank advances rose ~16%;
IDBI Bank loans increased ~15%; and
UCO Bank posted double-digit growth across business metrics with improved CASA and credit-deposit ratios.

Mumbai: Major lenders reported healthy loan and deposit growth in Q2 FY26, signalling broad-based credit momentum across retail, corporate, and MSME segments. Highlights below include year-on-year (YoY) growth, absolute levels, and key ratios where disclosed.

HDFC Bank — detailed update

• Loans (book): Rs. 27.9 lakh crore, YoY ~9% (Rs. 25.6 lakh crore a year ago); absolute growth ≈ Rs. 2.3 lakh crore.
• Total advances under management: Rs. 28.6 lakh crore, YoY ~8.9% (Rs. 26.3 lakh crore); absolute growth ≈ Rs. 2.3 lakh crore.
• Deposits: Rs. 27.1 lakh crore, YoY ~15.1% (Rs. 23.5 lakh crore); absolute growth ≈ Rs. 3.6 lakh crore.
• Average CASA: Rs. 8,770 billion, YoY ~8.5% (Rs. 8,084 billion).
• Read-through: Strong deposit mobilisation outpaces loan growth, providing comfort on funding amid a tight liquidity backdrop.

Kotak Mahindra Bank — detailed update

• Advances: Rs. 4.62 lakh crore, YoY ~15.8% (Rs. 3.99 lakh crore); absolute growth ≈ Rs. 0.63 lakh crore.
• Deposits: Rs. 5.28 lakh crore, YoY ~14.6% (Rs. 4.61 lakh crore); absolute growth ≈ Rs. 0.67 lakh crore.
• Read-through: Balanced expansion across retail and corporate books, with deposits keeping pace.

IDBI Bank — detailed update

• Net advances: Rs. 2.3 lakh crore, YoY ~15% (Rs. 2.0 lakh crore); absolute growth ≈ Rs. 0.30 lakh crore.
• Total deposits: Rs. 3.03 lakh crore, YoY ~9% (Rs. 2.77 lakh crore); absolute growth ≈ Rs. 0.26 lakh crore.
• Total business: Rs. 5.33 lakh crore (~12% YoY); CASA deposits: Rs. 1.39 lakh crore (~4% YoY).
• Read-through: Loan growth outpacing deposits; watch funding mix and cost of funds in detailed results.

UCO Bank — detailed update

• Total business: Rs. 5.37 lakh crore, YoY ~13.29%.
• Total advances: Rs. 2.31 lakh crore, YoY ~16.67% (Rs. 1.98 lakh crore); sequentially +2.67% vs Rs. 2.25 lakh crore (Q1).
• Total deposits: Rs. 3.06 lakh crore, YoY ~10.87% (Rs. 2.76 lakh crore).
• Domestic advances: Rs. 2.04 lakh crore (+17.24% YoY); Domestic deposits: Rs. 2.90 lakh crore (+9.85% YoY).
• Domestic CASA ratio: 38.11% (vs 36.91% in the previous quarter); Credit-deposit ratio: 75.56% (vs 71.77% a year ago).
• Read-through: Healthy growth with improving liability mix and utilisation; sequential loan accretion intact.

Sector read-through (why it matters):

• Demand is broad-based across retail, corporate and MSME segments, sustaining double-digit credit growth.
• Funding strength varies: where deposit growth outpaces loans (e.g., HDFC Bank), it supports liquidity buffers and can ease pressure on funding costs.
• Watch next in full results: NIM trajectory, asset-quality trends (slippages/write-offs), fee income momentum, and opex control—all key to earnings resilience into H2 FY26.

Quick glossary:

• CASA = Current Account + Savings Account deposits; higher CASA generally lowers cost of funds.
• Credit-Deposit (C/D) ratio = Loans ÷ Deposits; indicates how much of deposits are deployed as credit.
• Total business = Deposits + Advances.

Note: Figures are as reported in banks’ Q2 FY26 business updates shared in the article text. These are preliminary operating metrics; audited financial results may include additional adjustments and disclosures.