The banking sector saw a slowdown in the June quarter with muted credit growth after a strong March-end push. HDFC Bank's average deposits rose 5.1 per cent (five point one per cent) while gross advances declined 0.4 per cent (zero point four per cent). Punjab National Bank (PNB) and UCO Bank reported marginal growth, whereas Bank of Baroda and Yes Bank saw sequential declines in deposits and loans. Year-on-year, deposits outpaced loans for many banks; HDFC Bank's deposits rose 16.2 per cent (sixteen point two per cent) against 6.7 per cent (six point seven per cent) loan growth. Some PSU banks reported higher credit growth than deposits, while Yes Bank was an exception with stronger deposit growth.