Mumbai, July 4 -- Deposit growth at banks picked up pace in the first quarter of the current financial year, even as credit growth continued to be sluggish, initial business updates show.

Of the lenders that have declared their initial Q1 updates so far, on-year deposit growth matched or outpaced loan growth for most private banks and Punjab National Bank, growing 8-16% for commercial banks and 19-31% for small finance banks.

On the other hand, loans grew 5-15% for most banks and 11-18% for small finance banks. In Q4, on-year loan growth for most large banks was in the range of 12-22%.

YES Bank and CSB Bank were the outliers in Q1 FY26. YES Bank saw muted growth for both loan and deposits, with loans growing 5% and deposits 4%. CSB Ban...