BoB, BoI, PNB see 350-Bps credit-deposit growth gap

Three public sector banks — Bank of Baroda, Bank of India, and Punjab National Bank — reported a roughly 350-basis-point gap between credit growth and deposit growth in Q1FY27. BoB posted 17.42% YoY advances growth vs 13.81% deposit growth and saw sequential contraction in both advances and deposits from March 2026 levels. PNB (12.85% advances vs 8.52% deposits) and BoI (18.64% advances vs 14.92% deposits) also showed wide gaps, raising concerns over funding reliance and liquidity management in the PSU banking space.