PSBs borrow more to cater to credit demand

Public-sector banks (PSBs) are increasingly borrowing to finance lending expansion as deposits have not kept pace with credit growth, according to The Economic Times. Borrowings by PSBs surged nearly 29% year-on-year in the June quarter, compared to a growth of about 3% in private banks. This divergence coincided with private banks widening their deposit-growth advantage over state-owned lenders to nearly four percentage points.

Private banks grew deposits 14.3% year-on-year in the quarter, ahead of the 10.7% expansion recorded by PSBs, helping them gain deposit market share.

Brief written by urgent.news from The Economic Times's own syndicated text. Machine-written — may contain errors; check the original before relying on it.