Public Sector Banks Lead Credit Growth, Outpacing Private Lenders

23 Sep 2025 CW Team

For the first time since March 2010, Public Sector Banks (PSBs) recorded double-digit growth in advances at 12.2 per cent year-on-year in FY25, surpassing Private Sector Banks’ (PVBs) 9.5 per cent growth, according to a report by Systematix Group.

The report highlighted that PSBs, which had seen their market share in advances drop from 74.9 per cent in March 2011 to 51.8 per cent by March 2024, have reversed the trend with strong credit growth in FY25. While deposits have lagged advances for three consecutive years, PSBs remain better positioned than private banks in terms of liquidity.

Citing CRISIL, the report noted that banking sector advances are expected to grow 11–12 per cent in FY26, supported by RBI liquidity measures and government initiatives to boost economic growth. Despite competitive pressure from major private banks like HDFC Bank, PSBs retained their deposit market share, aided by branch expansion and a higher proportion of household deposits (67.6 per cent vs. 52.1 per cent for private banks).

The gap in asset quality between PSBs and PVBs has narrowed, with technology-driven underwriting and aggressive provisioning keeping gross slippage ratios under control. Recoveries from technically written-off accounts contributed 18–22.8 per cent to PSBs’ return on assets in FY25, providing a sustainable boost to profitability.

PSBs are increasingly focusing on non-interest income through insurance, mutual funds, and third-party product sales, supported by staff training and technology upgrades. Net Interest Margins (NIMs) faced pressure from repo rate cuts, but PSBs limited the decline better than private banks due to lower exposure to external benchmark-linked loans. With expected CRR relief, margins are projected to stabilise in FY26.

News source: ANI

Real Estate

23 Sep 2025

Hyderabad Financial District Evolves into a City Within a City

The Financial District in Hyderabad is rapidly transforming into more than just a business hub—it is evolving into a “city within a city,” a compact ecosystem where work, home, education, healthcare, and lifestyle coexist seamlessly. This vision was reinforced at a press conference hosted by ASBL, where data and insights highlighted why the Financial District has become one of India’s most resilient and future-ready real estate markets. Over the past four years, rental appreciation has consistently outpaced the city average, underlining genuine demand. In FY 2024–25 alone, 3BHK ..

TOTO Expands Bathroom Portfolio in India

TOTO India has expanded its product portfolio with the launch of season-inspired basins, premium faucets, and a new water-efficient WC range. The new additions reflect the brand’s philosophy of combining Japanese craftsmanship, technology, and design with sustainable living. The season-themed basins, enhanced with TOTO’s CEFIONTECT glaze, are offered in four shades—Forest Green, Mandarin Orange, Scarlet Red, and Ash Blue—each inspired by a season. Complementing these are faucets in Rose Gold and Graphite finishes, crafted with PVD technology for durability and manufactured using p..

India Sees 1 per cent Drop in Power Sector CO₂ Emissions

India’s carbon dioxide emissions from the power sector fell by 1 per cent year-on-year in the first half of 2025, marking only the second decline in nearly 50 years, according to a research report. The reduction was largely driven by record clean-energy capacity additions and lower electricity demand due to unusually mild weather, the analysis by the Centre for Research on Energy and Clean Air (CREA) for Carbon Brief found.The Helsinki-based think tank attributed 65 per cent of the decline in fossil-fuel generation to slower demand growth, 20 per cent to faster expansion of clean energy, and..