Banks start to see benefits of rate cuts, advances rise

MUMBAI: Indian Bank, South Indian Bank, and Karur Vysya Bank have seen improved growth in advances in the second quarter of this year, reflecting the impact of the 100-basis-point cut in policy rates, disclosures by the respective banks show.

Indian Bank's advances rose 13% on a year-on-year basis, the highest quarterly growth since the first quarter of FY24. Its deposits also rose 12%, the highest since the second quarter of FY23.

Its provisional advances stood at Rs 6.22 lakh crore, while deposits were Rs 7.76 lakh crore for the quarter ending September 2025.

South Indian Bank's advances rose 9% to ?92,287 crore, while deposits rose 9.7% to Rs 1.15 lakh crore.

Karur Vysya Bank reported 15.5% growth in advances to Rs 92,719 crore while deposits rose 15.3% to Rs 1.10 lakh crore in the same period.