India, July 6 -- Public sector banks started the first quarter of FY27 on a strong footing, reporting double-digit growth in advances, but deposit mobilisation seemed to be trailing the jump in loans.

Retail loans remained the key growth engine even as low-cost CASA deposits stayed under pressure.

Provisional business disclosures, compiled by PTI, by nine of the 12 state-owned lenders for the quarter ended June 30, showed loan growth ranging from around 12 per cent to nearly 29 per cent year-on-year compared to deposit growth of 3.5-16 per cent, reflecting sustained credit demand despite a slower pace of liability mobilisation.

Among the major lenders, Bank of Baroda reported a 17.4 per cent year-on-year rise in global advances against...