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Key Points

Bank deposits with Scheduled Commercial Banks grew 11.3% year-on-year as of June 2025. The growth was primarily driven by term deposits which surged 13.5% while savings deposits saw modest 5.4% growth. Private sector banks outperformed with 12.4% deposit growth compared to public sector banks' 10.2%. Maharashtra, Delhi, Karnataka, Uttar Pradesh and Tamil Nadu collectively contributed over half of India's total deposits.

Key Points: RBI Reports 11.3% Bank Deposit Growth Driven by Term Deposits

  • Term deposits grew 13.5% YoY outpacing savings deposits
  • Share of term deposits increased to 62.2% of total deposits
  • Private banks grew deposits 12.4% vs public banks' 10.2%
  • Five states account for over 54% of total national deposits
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Bank deposits with SCBs register 11.3% year-on-year growth as of June-end

RBI data shows 11.3% YoY growth in bank deposits as of June 2025, with term deposits surging 13.5% while savings deposits grew modestly at 5.4%.

"The surge was primarily driven by a strong rise in term deposits, which grew 13.5 per cent year-on-year - Reserve Bank of India"

Mumbai, August 29

Bank deposits with Scheduled Commercial Banks (SCBs) recorded a year-on-year growth of 11.3 per cent as of June-end 2025, slightly lower than the 11.7 per cent growth (net of merger) seen a year earlier, according to the latest quarterly data released by the Reserve Bank of India on Friday.

The surge was primarily driven by a strong rise in term deposits, which grew 13.5 per cent year-on-year, significantly outpacing the modest 5.4 per cent growth in savings deposits.

As a result, the data shows that the share of term deposits in total deposits increased to 62.2 per cent in June 2025, up from 61.0 per cent in June 2024.

RBI's 'Quarterly Basic Statistical Return (BSR)-2 data shows that nearly 70 per cent of term deposits were in the original maturity range of one to three years, while around 20 per cent comprised short-term deposits with maturities of less than one year. Reflecting the recent monetary policy easing, the proportion of term deposits offering interest rates of 7 per cent and above declined to 65.0 per cent in June 2025 from 66.9 per cent a year ago.

Large-sized deposits (of Rs 1 crore and above) saw a marginal increase, rising to 45.7 per cent of total term deposits in June 2025 from 44.8 per cent a year earlier. Meanwhile, the share of household sector deposits showed a modest decline to 59.9 per cent from 60.8 per cent during the same period. In contrast, deposits from financial corporations increased to 7.0 per cent, up from 6.0 per cent a year ago.

Senior citizens held a significant 20.4 per cent share of total deposits as of June 2025.

Among the bank groups, public sector banks posted a deposit growth of 10.2 per cent, while private sector banks registered a higher growth of 12.4 per cent. Public sector banks continued to dominate with a 57.3 per cent share in total deposits, while private sector banks accounted for 36.0 per cent.

Geographically, Maharashtra, the National Capital Territory (NCT) of Delhi, Karnataka, Uttar Pradesh, and Tamil Nadu collectively contributed 54.3 per cent of total deposits and 47.8 per cent of household deposits, underscoring the regional concentration of banking activity in India.

- ANI

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Reader Comments

P
Priya S
Interesting that nearly 70% of term deposits are in 1-3 year range. Shows people are balancing between returns and liquidity needs. The regional concentration in Maharashtra, Delhi, Karnataka etc. is concerning though - banking penetration needs to improve in other states too.
A
Aman W
The decline in savings deposit growth to just 5.4% is worrying. With inflation around 4-5%, real returns on savings accounts are almost zero. No wonder people are moving to term deposits! RBI should think about this.
S
Sarah B
As an NRI, I find these numbers encouraging for India's banking stability. The fact that senior citizens hold over 20% of deposits shows how important fixed deposits are for retirement planning in India. Good to see financial corporations increasing their share too.
V
Vikram M
Private banks growing faster than public sector banks at 12.4% vs 10.2% shows where the market is heading. Better digital services and customer experience are paying off for them. But PSBs still have the trust factor for large deposits.
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Nisha Z
The fact that 45.7% of term deposits are above ₹1 crore shows the wealth concentration in our country. While growth numbers look good, we need more financial inclusion for middle and lower income groups. The regional disparity is also quite stark.

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