8 Banks That Reported Healthy Deposit Growth in Q2 FY27
India’s banking sector has continued to witness healthy growth in deposits, supported by rising financialisation of savings, expanding retail banking and increasing demand for diverse banking products.
Deposit growth remains an important indicator of a bank’s ability to expand its lending business and strengthen its balance sheet. Banks with a strong and growing deposit base can benefit from greater funding stability and a wider customer franchise.
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AU Small Finance Bank Ltd
AU Small Finance Bank offers services related to vehicle finance, housing loans, MSME loans, gold loans, and other banking services. AU Small Finance Bank has been diversifying its portfolio and enhancing its reach into various sectors of retail and commercial banking.
With a market capitalisation of Rs. 77,398 cr, the shares of AU Small Finance Bank Ltd were trading at Rs. 1030.10 per share, up from its previous close of Rs. 990.60 per share.
AU Small Finance Bank reported strong business growth in Q2 FY27, with deposits rising 28.6% YoY to Rs. 1.70 lakh crore from Rs. 1.32 lakh crore. CASA deposits increased 29.1%, while gross advances grew 27.9% YoY, reflecting healthy growth across its banking franchise.
Bank of India
Bank of India is a public sector bank and has a diversified reach into corporate, retail, agriculture, and MSME banking. The bank has been working towards improving its asset quality, developing its retail business and growing its overall operations.
With a market capitalisation of Rs. 60,687 cr, the shares of Bank of India were trading at Rs. 133.30 per share, up from its previous close of Rs. 129.20 per share.
Bank of India reported strong growth in Q2 FY27, with global deposits increasing 21.6% YoY to Rs. 10.38 lakh crore from Rs. 8.53 lakh crore. Global gross advances grew 20.4% YoY, supported by continued growth across its retail, agriculture and MSME segments.
Yes Bank Ltd
Yes Bank is a private sector bank and offers services related to retail, MSME and corporate banking. Yes Bank has been trying to repair its balance sheet, build up deposits and focus on retail business gradually.
With a market capitalisation of Rs. 66,135 cr, the shares of Yes Bank Ltd were trading at Rs. 21.07 per share, up from its previous close of Rs. 20.70 per share.
Yes Bank reported a 19.5% YoY increase in deposits to Rs. 3.54 lakh crore in Q2 FY27 from Rs. 2.96 lakh crore. Loans and advances grew 23.8% YoY, while CASA deposits increased 6.6%, indicating continued expansion in its overall banking business.
Ujjivan Small Finance Bank Ltd
Ujjivan Small Finance Bank is primarily focused on financial inclusion and caters to the needs of microfinance, MSME, housing, vehicle finance and retail banking. The bank has been diversifying from microfinance to build a better balance in the loan portfolio.
With a market capitalisation of Rs. 13,038 cr, the shares of Ujjivan Small Finance Bank Ltd were trading at Rs. 66.83 per share, up from its previous close of Rs. 65.31 per share.
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Ujjivan Small Finance Bank recorded strong Q2 FY27 growth, with deposits rising 29.2% YoY to Rs. 50,649 crore from Rs. 39,211 crore. CASA deposits grew 22.2%, while the gross loan book increased 32.1% YoY, supported by growth across secured and unsecured lending segments.
Dhanlaxmi Bank Ltd
Dhanlaxmi Bank is a private sector bank whose operations are in retail, MSME, corporate and agriculture banking. This bank has been endeavoring to grow its lending operations in order to boost efficiency and strengthen its retail franchise.
With a market capitalisation of Rs. 1,049 cr, the shares of Dhanlaxmi Bank Ltd were trading at Rs. 26.58 per share, down from its previous close of Rs. 26.87 per share.
Dhanlaxmi Bank reported 20.15% YoY growth in deposits to Rs. 20,552 crore during Q2 FY27 from Rs. 17,105 crore. CASA deposits increased 16.83%, while gross advances grew 22.3% YoY, with strong growth in gold loans and MSME advances supporting overall business expansion.
Suryoday Small Finance Bank Ltd
Suryoday Small Finance Bank operates in the area of microfinance, affordable housing, MSME, vehicles and retail loans. Suryoday Small Finance Bank is increasingly diversifying its business portfolio in order to make its operations more sustainable through secured lending.
With a market capitalisation of Rs. 1,565 cr, the shares of Suryoday Small Finance Bank Ltd were trading at Rs. 147.30 per share, up from its previous close of Rs. 144.10 per share.
Suryoday Small Finance Bank recorded the strongest deposit growth among the eight banks, with deposits increasing 35% YoY to Rs. 16,184 crore in Q2 FY27 from Rs. 11,991 crore. Retail deposits grew 32.5%, while gross advances increased 34.6% YoY, reflecting broad-based business growth.
HDFC Bank Ltd
HDFC Bank is one of the biggest private sector banks in India, operating in retail, corporate, MSME and commercial banking. A wide customer base and a diverse loan portfolio of HDFC Bank have enabled it to become a leader in the private sector banking business.
With a market capitalisation of Rs. 10,88,167 cr, the shares of HDFC Bank Ltd were trading at Rs. 705.75 per share, down from its previous close of Rs. 719.35 per share.
HDFC Bank reported 18.8% YoY growth in deposits to Rs. 33.28 lakh crore in Q2 FY27 from Rs. 28,018 lakh crore. CASA deposits increased 10.8%, while time deposits grew 22.8%. Gross advances also increased 16.3% YoY, highlighting steady expansion in its core banking business.
CSB Bank Ltd
CSB Bank is a privately-owned bank that specialises in gold loans and MSME banking, apart from providing retail and corporate banking facilities. The bank is diversifying its loan portfolio through entry into the segments of MSME, retail and others rather than being dependent on gold loans.
With a market capitalisation of Rs. 5,339 cr, the shares of CSB Bank Ltd were trading at Rs. 307.80 per share, up from its previous close of Rs. 305 per share.
CSB Bank reported 18% YoY growth in deposits to Rs. 46,889 crore in Q2 FY27 from Rs. 39,651 crore. CASA deposits increased 6%, while term deposits grew 22%. Gross advances rose around 22% YoY, with gold loans also recording strong growth during the quarter.