Q2 Banking Update: HDFC Reports 9% Loan Growth; Kotak, IDBI, UCO Deliver Robust Results

India’s banking sector witnessed robust credit growth in Q2 FY26 (July–September 2025)

With both private and public sector lenders reporting healthy loan and deposit expansion. Major banks including HDFC, Kotak Mahindra, IDBI, and UCO showcased continued momentum across retail, corporate, and MSME segments.

HDFC Bank: Loans Up 9%, Deposits Rise 15%
HDFC Bank’s loan book increased 9% year-on-year to ₹27.9 lakh crore as of September 30, 2025, from ₹25.6 lakh crore a year earlier. Total advances under management rose 8.9% to ₹28.6 lakh crore. Deposits grew 15.1% to ₹27.1 lakh crore, while CASA deposits reached ₹8,770 billion, up 8.5% YoY.

Kotak Mahindra Bank: Credit Gains Nearly 16%
Kotak Mahindra Bank posted a 15.8% rise in advances to ₹4.62 lakh crore, up from ₹3.99 lakh crore last year. Total deposits grew 14.6% to ₹5.28 lakh crore, reflecting strong traction across both retail and corporate portfolios.

IDBI Bank: Loans Jump 15%, Deposits Up 9%
IDBI Bank’s credit book expanded 15% YoY to ₹2.3 lakh crore, with total deposits at ₹3.03 lakh crore, a 9% increase. The bank’s total business rose 12% to ₹5.33 lakh crore, while CASA deposits grew 4% to ₹1.39 lakh crore.

UCO Bank: Total Business Up 13.3% YoY
State-run UCO Bank’s total business increased 13.29% to ₹5.37 lakh crore. Advances rose 16.67% YoY to ₹2.31 lakh crore, while deposits grew 10.87% to ₹3.06 lakh crore. Domestic CASA ratio improved to 38.11%, and the credit-to-deposit ratio stood at 75.56%, up from 71.77% last year.

The Q2 numbers highlight continued strength in credit demand, with banks seeing growth across retail, corporate, and MSME segments. Detailed Q2 results including revenue, net profit, and NPAs are expected to be released later this month.