NEW DELHI: Scheduled Commercial Banks (SCBs) recorded an 11.3 per cent year-on-year (YoY) increase in net advances in Q2 FY26, driven by momentum in retail and MSME lending, a report said on Wednesday.

According to the report from CareEdge Ratings, credit growth revived across retail and MSME segments, though margins were constrained by faster lending rate transmission and slower deposit repricing.

Among SCBs, public sector banks recorded stronger growth of 14.5 per cent YoY in advances, while private sector banks registered a comparatively moderate rise of 9.4 per cent YoY.

Meanwhile, deposits increased by 11 per cent at public sector banks and 10 per cent at private banks. The CASA ratio declined to 37.4 per cent from 38.5 per cent a year earlier, as term deposits rose approximately 1

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