Indian banks reported mixed but generally positive business updates for the first quarter of fiscal year 2026, reflecting steady growth in deposits, advances, and total business volumes. HDFC Bank, India's largest private lender, saw its deposits rise 16.2% year-on-year (YoY) to ₹27.64 lakh crore, outpacing loan growth which increased 6.7% YoY to ₹26.53 lakh crore. The bank's average deposits grew 5.1% quarter-on-quarter (QoQ), with CASA deposits up 6.1% YoY. Similarly, AU Small Finance Bank reported a 31.3% YoY increase in total deposits to ₹1.28 lakh crore and a 23.1% YoY rise in gross advances to ₹1.12 lakh crore. Other small finance banks like Suryoday and Ujjivan showed strong deposit growth of 39% and 18.8% YoY respectively, with advances also increasing, though Ujjivan experienced a 12.1% QoQ decline in disbursements. Capital Small Finance Bank's gross advances rose 16.4% YoY to ₹7,437 crore, with total deposits up 17.1% YoY. Public sector banks also reported growth: Punjab National Bank's global business increased 11.6% YoY to ₹27.19 lakh crore, Bank of Baroda's global advances rose 12.6% YoY to ₹12.07 lakh crore, and Bank of India’s global business grew 10.3% YoY to ₹15.05 lakh crore. UCO Bank's total business increased 13.7% YoY to ₹5.24 lakh crore, with advances up 16.6% YoY. Punjab & Sind Bank posted a 10.9% YoY rise in total business to ₹2.31 lakh crore and a CASA ratio improvement to 76.19%. Bandhan Bank saw a 16.1% YoY increase in total deposits to ₹1.55 lakh crore, though its CASA deposits declined 5.8% YoY. IDBI Bank's total business grew 8% YoY to ₹5.08 lakh crore, with deposits up 7% and advances rising 9% YoY. Bank of Maharashtra reported a 14.08% YoY increase in deposits to ₹3.05 lakh crore and a 15.36% rise in gross advances. Dhanlaxmi Bank's deposits rose 14.7% YoY to ₹16,570 crore, with advances up 17.3%. Jammu & Kashmir Bank recorded a 12.05% YoY increase in deposits to ₹1.49 lakh crore and a 9.54% rise in total business. Overall, the banking sector showed robust deposit growth, with several banks reporting advances growth, though some noted a moderation in loan growth relative to deposits, as seen in HDFC Bank's moderated credit-deposit ratio after a post-merger spike.