PSU banks perform better on loan growth in Q3 than private peers amid GST rationalisation
State-owned banks have performed better in terms of loan growth than its private sector peers in the third quarter of the current financial year, reflecting a benefit after Goods and Services Tax (GST) rationalisation leading to uptick in demand during festive season.
Usually, the second half of every financial year sees a higher demand for credit amid festivals such as Ganesh Utsav, Diwali, and others. Additionally, the last quarter sees aggressive loan offers from banks to close books on a stronger note.
Data compiled by Moneycontrol showed that advances growth of PSU banks stood in the range of 7-20 percent in Q3FY26 as per provisional numbers, as compared to 4-17 percent for private banks.
Bank credit growth stayed firmly in double digits in the October-December quarter of FY26, remaining in the range of 10.21-11.87 percent, extending a run that began after the government announced GST rate cuts in early September.
Weekly prints since September have consistently remained above 10 percent, according to the Reserve Bank of India’s (RBI) data.
