New Delhi, June 21 -- The credit growth of Indian banks moderated in the Financial Year 2025, yet Public Sector Banks (PSBs) gained the market share, outperforming their Private Banks (PVBs) counterparts, according to a report by the Union Bank of India.

The report added that the gain was visible across both the nature and geography of lending.

"Credit growth slowed in FY25 yet PSBs gained market share vis-a-vis PVBs," the report added.

The Credit-Deposit (CD) ratio for PVBs was observed elevated, reflecting higher credit push, but their incremental CD ratio corrected sharply in FY25, hinting at a slowdown in fresh disbursements.

Contrary to this, the PSBs saw more stability, leveraging their balance sheets more cautiously but effecti...