Private banks grab deposits, PSBs surge in loans – funding gap emerges
Private banks grew deposits 14.3% YoY in Q1, outpacing public sector banks' 10.7% rise, while PSBs posted faster loan growth (16.4% vs 15.9%). The deposit‑loan mismatch raises funding sustainability worries for state‑run lenders, underscoring a structural shift toward private banks' healthier balance sheets.