Banks Report Strong Q3 Growth: AUM, Loans Surge Across Sector

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AuthorVihaan Mehta|Published at:
Banks Report Strong Q3 Growth: AUM, Loans Surge Across Sector
Overview

Indian financial institutions posted robust provisional Q3 FY26 results. Bajaj Finance and Bajaj Housing Finance, alongside Bandhan Bank, AU Small Finance Bank, Bank of Baroda, and others, revealed significant year-over-year growth in assets under management, loan disbursals, and customer base. These figures signal broad-based strength in the banking sector, with key lenders showing accelerated expansion.

Multiple Indian banks and financial institutions have reported strong provisional business updates for the quarter ended December 31, 2025, painting a picture of robust sector-wide growth.

Bajaj Group Shows Momentum

Bajaj Housing Finance Ltd. announced gross disbursements of approximately ₹16,535 crore in Q3 FY26, a substantial increase from ₹12,571 crore in the prior year's quarter. Assets under management (AUM) surged 23% year-over-year to nearly ₹1,33,400 crore. Loan assets reached approximately ₹1,17,290 crore.

Bajaj Finance Ltd. reported its customer franchise expanded to 115.40 million as of December 31, 2025, up from 97.12 million a year earlier. New loans booked climbed 15% to 13.90 million. AUM grew 22% to approximately ₹4,85,900 crore, with the deposit book reaching ₹71,000 crore.

Public Sector Banks Display Resilience

Bank of Baroda (BoB) posted a 12.22% year-over-year increase in global business to ₹28,90,661 crore. Global advances grew 14.57% to ₹13,43,912 crore, outpacing deposit growth. Domestic operations fueled much of this momentum, with retail advances domestically showing a remarkable 17.30% YoY jump.

Bank of India (BoI) reported its global business expanded 12.50% YoY to ₹16,27,098 crore. Both deposits and advances saw double-digit growth, driven by domestic momentum.

Union Bank of India saw gross advances reach ₹10,16,805 crore, a 7.13% YoY increase. While deposits saw seasonal moderation, RAM (Retail, Agriculture, MSME) advances surged 11.49% YoY.

Jammu & Kashmir Bank’s total business grew 13.34% YoY to ₹2,72,109.27 crore, with deposits up 10.58% YoY.

IDBI Bank’s total business reached ₹5,46,634 crore, a 12% YoY increase. Advances led this growth, supported by steady deposit expansion.

Private and Small Finance Banks Post Strong Gains

Bandhan Bank reported loans and advances at ₹1,45,227 crore, up 10% YoY. Total deposits grew 11.1% YoY to ₹1,56,723 crore.

AU Small Finance Bank's total deposits climbed 23.3% YoY to ₹1,38,420 crore. Gross advances expanded 24% YoY, leading to a 19.3% rise in the overall gross loan portfolio.

Ujjivan Small Finance Bank showed total deposits surging 22.2% YoY to ₹42,219 crore and its gross loan book expanding 21.6% YoY to ₹37,055 crore.

Equitas Small Finance Bank reported gross advances up 15.86% YoY to ₹43,269 crore.

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