Shifting Gears: PSBs borrow more to cater to credit demand as deposits lag - Business News, Finance News, Share Market News - Market trendz

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Thursday, 27 August 2026

Shifting Gears: PSBs borrow more to cater to credit demand as deposits lag


Public sector banks are borrowing more to fund lending expansion. Deposits are not keeping pace with credit growth for these banks. Private banks show stronger deposit growth and are gaining market share. This trend raises concerns about funding sustainability for state-owned lenders. Abundant system liquidity currently cushions the impact of these shifts.

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