No, a Banking Company/ Financial Institution engaged in supplying services by way of accepting deposits, extending loans or advances has the following options:
Comply with the provisions of Section 17(2) regarding restriction of credits
relatable to exempt supplies in the manner prescribed; or
Avail 50% of the eligible input tax credit every month on inputs, capital goods and input services and the remaining 50% shall not be available.
The option exercised cannot be withdrawn in the same year. The restriction of 50% will not apply to the tax paid on supplies made by one registered person to another registered person having the same PAN.
(ICAI FAQ PUBLICATION 06-09-2017 -: Apportionment of credit and blocked credits: FAQ NO.13)