Banks Post Loan Growth; Motherson Wins PLI; IDBI Divestment Delayed

BANKINGFINANCE
Whalesbook Logo
AuthorKavya Nair|Published at:
Banks Post Loan Growth; Motherson Wins PLI; IDBI Divestment Delayed
Overview

Indian banks reported strong Q3 loan and deposit growth, with HDFC Bank and Kotak Mahindra Bank leading the charge. Samvardhana Motherson secured PLI incentives for a ₹1,900 crore investment. Meanwhile, IDBI Bank's strategic disinvestment is expected to extend into the next fiscal year, potentially impacting government revenue targets. Dabur India anticipates mid-single-digit revenue growth, supported by improved demand and tax reforms.

Indian stock markets are poised for a higher open, with GIFT Nifty signaling positive sentiment. Major lenders reported robust business updates for the December quarter.

Banking Sector Performance

HDFC Bank saw its loan book grow 11.9% year-on-year as of December 31, 2025, with deposits rising 11.5%. This marks a significant acceleration from previous quarters. Kotak Mahindra Bank's net advances climbed 16% year-on-year to ₹4,80,229 crore. Axis Bank reported gross advances up 14.1% year-on-year, reaching ₹11.71 lakh crore, while total deposits grew 15%.

IndusInd Bank, however, showed a moderation in growth, with net advances declining 13.1% year-on-year to ₹3.18 lakh crore. Deposits also saw a marginal decrease. Central Bank of India reported an approximate 16% growth in total business and a substantial increase in deposits, though these figures await auditor review.

Manufacturing & Consumer Goods Updates

Samvardhana Motherson International's arm, Motherson Electronic Components, secured government incentives under the production-linked incentive scheme. The company plans a ₹1,900 crore investment over six years from FY26 to FY31, aiming to create over 5,000 jobs at its Tamil Nadu plant.
Dabur India expects consolidated revenue for the December quarter to grow at a mid-single-digit percentage. The fast-moving consumer goods major anticipates operating profit and net profit to outpace revenue growth, citing positive macroeconomic conditions and tax reforms supporting demand.

Strategic Disinvestment & Financial Ventures

The strategic disinvestment of IDBI Bank is anticipated to extend beyond the current fiscal year, as procedural and evaluation processes continue. This delay may lead to the government's non-debt capital receipts falling short of the Budget target for the current fiscal. Separately, HDFC Asset Management Company has launched a new Structured Credit Fund-I, with the International Finance Corporation (IFC) committing up to ₹220 crore as an anchor investor.

Oil And Natural Gas Corporation (ONGC) has entered into joint venture agreements with Japan's Mitsui OSK Lines (MOL) to establish two entities in Gift City, Gandhinagar. ONGC will hold a 50% stake in each venture, Bharat Ethane One IFSC Private Ltd and Bharat Ethane Two IFSC Private Ltd.

Disclaimer:This content is for educational and informational purposes only and does not constitute investment, financial, or trading advice, nor a recommendation to buy or sell any securities. Readers should consult a SEBI-registered advisor before making investment decisions, as markets involve risk and past performance does not guarantee future results. The publisher and authors accept no liability for any losses. Some content may be AI-generated and may contain errors; accuracy and completeness are not guaranteed. Views expressed do not reflect the publication’s editorial stance.