PSBs outperform private banks in lending growth
Public sector banks (PSBs) in India have taken the lead over private banks when it comes to lending growth for fiscal 2026's December quarter.
According to analysts, PSBs saw their loans jump by 17-28% year-over-year, while private banks managed a slower 11-16%.
Thanks to this surge, PSBs now hold a bigger slice of the loan market (54.4%) while private banks' share has dropped to 40.6%.
PSBs' market share rises to 54.4%
A big part of this boost comes from improved asset quality and a comeback in corporate lending.
State Bank of India and Bank of Baroda stood out as top performers, helping push up PSBs' market share even more.
Even though their funding mix isn't ideal, PSBs still grew their net interest income and posted higher returns on assets than many midsized private rivals, helped along by treasury gains and recovering old loans.