“Banks See Strong Q3 Credit Growth Fueled by RBI Policies and GST Rate Cuts”

Banks reported robust credit growth in Q3FY26, driven by a 125-bps repo rate cut, GST rate reductions, and festive season spending. Provisional data for October–December 2025 show double-digit loan growth, with credit-deposit ratios hitting a record 81.6%. Public sector banks like Bank of Maharashtra (19.61%), Central Bank of India (19.57%), and Bank of India (15.07%) led advances, while private banks such as HDFC Bank (11.9%) and Kotak Mahindra Bank (16%) also posted strong growth. GST reforms, with a simplified 5%–18% structure, and seasonal demand boosted auto, unsecured, and retail loans. RBI’s repo rate cut further fueled lending momentum.