New -delhi [India]: The credit growth of Indian banks moderated in the financial year 2025, but still public sector banks acquired the market share, which performed better than their counterparts in the private banks, according to a report from the Union Bank of India. The report added that the profit was visible on the nature and geography of lending. “Credit growth has delayed in FY25, but PSBs have acquired market share against PVBs,” the report added. The credit deposit ratio for PVBs has been increased, reflecting a higher credit storage, but their incremental CD ratio corrected sharply in FY25, which has a slowdown in fresh payouts. In contrast, the PSBs saw more stability, which utilizes their balance sheets more carefully but effectively. According to the report, the working capital and demand loans, which are usually used by businesses for operational requirements, have become an important driver for this better performance. The report noted that a major change has emerged in the sectoral distribution of credit. The regulatory interventions on the uninsured lending have delayed the retail payments of private banks. While the public sector banks have used this opportunity to increase their incremental market share in the retail credit segment, especially to get an lead in the housing loans. The report noted that state -run bank companies also lead in industrial credit, which was not the specialization of PSBs. On the geographical front, PSBs dominated in rural and semi-urban regions. Banks in the public sector have secured a large part of the incremental credit in rural areas in FY25, relocating their presence as important lenders in the interior of India. More than 60 percent of the incremental credit in semi-urban places was brought into the corner by PSBs, while even in urban and metro areas they managed to recover a share lost in FY24. According to the findings of the report in terms of lender segmentation, credit to individuals continued its upward track in the current fiscal, showing the strength of retail banking. This article was generated from an automated news agency feed without edits to text.
PSU banks get market share amid slow in credit growth: UBI Report | Einsmark news
