MUMBAI: The banking sector saw a slowdown in the June quarter, with muted credit growth and uneven deposit performance, following a strong March-end push. HDFC Bank, the largest private lender, reported a 5.1% sequential rise in average deposits and a 0.4% increase in gross advances, joining some public sector banks in bucking the broader trend.The first quarter is typically seen as a lean period, with both loans and deposits moderating after the fiscal year-end surge. Despite the seasonality, Punjab National Bank and UCO Bank reported growth in business. PNB’s global deposits rose 1.4% and advances 1.3% over the previous quarter, while UCO Bank saw deposits rise 1.7% and credit growth 2.3%.In contrast, Bank of Baroda posted a sequential drop of 2.5% in global deposits and 1.9% in advances. Yes Bank recorded declines of 3% and 2% in deposits and loans, respectively. IndusInd Bank and RBL Bank, both mid-sized private players, also reported lower deposits and advances compared to end-March levels.Year-on-year, several banks saw deposit growth surpass loan growth. HDFC Bank’s deposits rose 16.2%, adding Rs 3.12 lakh crore, while advances grew 6.7%. The increase follows its strategy to bring down its credit deposit ratio after the merger of HDFC with HDFC Bank. PNB also reported stronger growth in deposits than loans, at 12.1% versus 11.3%.For some PSU lenders with liquid resources, credit growth exceeded deposit accretion as they rejigged business to protect margins. Bank of Baroda’s loans rose 12.4%, while deposits grew 9.7%. At Bank of India, advances increased 15.4% against 10.4% growth in deposits. Punjab & Sind Bank also saw loans outpace deposits, growing 13.2% and 8.8%, respectively. Yes Bank, an exception, saw 13.9% deposit growth against a 6.4% rise in loans.