Mumbai, April 8 -- The pace of loan and deposit growth slowed sequentially for several banks in the fourth quarter ended December even as margins came under pressure.

While the last quarter of a financial year typically sees accelerated growth, lenders faced some pressure in Q4 FY25 due to persistent tightness in system liquidity, lagging deposit growth and the 25-basis-point rate cut by the Reserve Bank of India in the first week of February.

Loan growth for Punjab National Bank, Bank of India, IDFC First Bank, Yes Bank, Bandhan Bank, IDBI Bank and South Indian Bank fell to 8-20% on-year from 12-22% in the previous quarter, as per data compiled by Mint from per-quarter provisional updates of the banks.

Following the rate cut, outstand...