Now, over a third of term deposits ₹5 crore+ accounts: RBI data
June 01, 2026
Large-ticket deposits are gaining prominence as banks struggle to mobilise retail savings, increasing reliance on a small pool of high-value depositors
The RBI’s Annual Basic Statistical Returns data for FY26 showed that deposits of ₹1 crore and above accounted for 46.3 per cent of all term deposits as of end-March 2026, continuing a steady rise over the past few years.
The share of such deposits stood at 45.07 per cent at end-March 2025 and 43.66 per cent at end-March 2024.
Within this category, deposits of ₹5 crore and above alone accounted for 34.8 per cent of term deposits as of end-March 2026. However, these deposits constituted just 0.05 per cent of term deposit accounts by number, indicating an increasing concentration of deposits among a small set of large depositors.
The data also showed that nearly 38 per cent of term deposits were ₹3 crore and above — categories that fall outside retail deposits, typically defined as deposits up to ₹2 crore. In contrast, term deposits of up to ₹5 lakh accounted for only 17.8 per cent of term deposits as of end-March 2026.
“The rise in high-value term deposits is largely a function of the interest-rate environment and pricing. When rates are expected to rise, investors prefer fixed-income instruments such as bank deposits over bonds, because bond portfolios face mark-to-market losses as yields move up,” said a senior private sector banker.
“Banks have also been offering attractive rates on deposits above ₹5 crore, with certificate of deposit rates currently around 7.5-7.75 per cent, making them competitive versus debt mutual funds or gilt funds. That said, banks are generally more comfortable with granular retail deposits than with large-ticket deposits,” the banker added.
The trend comes at a time when banks have been facing intense competition for retail deposits, forcing them to increasingly rely on bulk deposits to support balance-sheet growth.
“This trend represents significant reliance on corporate or bulk deposits. Companies may have placed large sums in bank fixed deposits (FDs) as part of their cash management strategies along with parking it in liquid mutual funds. The interest rates in corporate certificates were high during March. In addition, companies might have also parked some of their funds in this segment due to the ongoing West Asia conflict. Apart from that, some banks offer higher interest rates for deposits worth ₹1 crore and above amid challenges in retail deposits mobilization, due to which their cost of funds goes up,” said Saurabh Bhalerao, associate director, CareEdge Ratings.
Growth in deposits with scheduled commercial banks accelerated to 11.5 per cent year-on-year as of end-March 2026, compared with 10.6 per cent a year earlier. Deposit growth remained broad-based, with bank branches across all population groups recording double-digit growth.
The data also pointed to a structural shift in the composition of deposits over the past five years. The share of savings deposits in aggregate deposits declined to 28.7 per cent in March 2026 from 34.6 per cent in March 2022. In contrast, the share of term deposits rose to 61.6 per cent from 55.2 per cent during the same period, reflecting depositors’ preference for higher-yielding fixed-income instruments amid elevated interest rates.
Public sector banks emerged as the largest contributors to deposit accretion during FY26, accounting for 50.8 per cent of incremental deposits, followed by private sector banks with a contribution of 38.6 per cent. Regional rural banks, however, saw their share in deposit mobilisation decline to 2.9 per cent in March 2026 from 3.2 per cent four years earlier.
The maturity profile of deposits has also undergone a significant shift. The share of term deposits with original maturity between one and three years rose to 69.8 per cent in March 2026 from 50.4 per cent in March 2022. At the same time, the proportion of deposits with maturity of up to one year declined sharply to 8.8 per cent from 16.7 per cent.
Meanwhile, the data also showed that the share of term deposits carrying interest rates below 7 per cent surged to 61.8 per cent in March 2026 from 27.3 per cent in the previous year.
Households continued to remain the largest source of deposits, accounting for 59.3 per cent of total deposits as of end-March 2026, though their share moderated in recent years.
Deposits from the non-financial sector rose to 18.5 per cent from 17.7 per cent a year earlier, while the share of financial corporations increased to 7.8 per cent from 6.8 per cent.
The share of senior citizens in total deposits remained broadly stable over the last four financial years and stood at 20 per cent in March 2026, according to the RBI data.
Meanwhile, RBI data showed that the share of bank loans carrying interest rates below 9 per cent rose sharply to 64.2 per cent as of end-March 2026 from 43.9 per cent a year earlier, reflecting the transmission of monetary policy actions into lending rates. Within term loans, which accounted for 62.8 per cent of total bank credit, the share of loans carrying interest rates below 10 per cent stood at 80.2 per cent.
The RBI data also pointed to a moderation in personal loan growth to 12.9 per cent on-year, after several years of outpacing overall credit growth. Additionally, lending to the private corporate sector gained momentum. Loans to this sector, which accounted for more than one-fourth of total bank credit, grew 15.5 per cent in FY26, compared with 11.9 per cent a year earlier.
Agricultural credit growth accelerated to 14.4 per cent from 8.1 per cent a year earlier, while industrial credit growth rose to 12 per cent from 9.4 per cent.
The share of such deposits stood at 45.07 per cent at end-March 2025 and 43.66 per cent at end-March 2024.
Within this category, deposits of ₹5 crore and above alone accounted for 34.8 per cent of term deposits as of end-March 2026. However, these deposits constituted just 0.05 per cent of term deposit accounts by number, indicating an increasing concentration of deposits among a small set of large depositors.
The data also showed that nearly 38 per cent of term deposits were ₹3 crore and above — categories that fall outside retail deposits, typically defined as deposits up to ₹2 crore. In contrast, term deposits of up to ₹5 lakh accounted for only 17.8 per cent of term deposits as of end-March 2026.
“The rise in high-value term deposits is largely a function of the interest-rate environment and pricing. When rates are expected to rise, investors prefer fixed-income instruments such as bank deposits over bonds, because bond portfolios face mark-to-market losses as yields move up,” said a senior private sector banker.
“Banks have also been offering attractive rates on deposits above ₹5 crore, with certificate of deposit rates currently around 7.5-7.75 per cent, making them competitive versus debt mutual funds or gilt funds. That said, banks are generally more comfortable with granular retail deposits than with large-ticket deposits,” the banker added.
The trend comes at a time when banks have been facing intense competition for retail deposits, forcing them to increasingly rely on bulk deposits to support balance-sheet growth.
“This trend represents significant reliance on corporate or bulk deposits. Companies may have placed large sums in bank fixed deposits (FDs) as part of their cash management strategies along with parking it in liquid mutual funds. The interest rates in corporate certificates were high during March. In addition, companies might have also parked some of their funds in this segment due to the ongoing West Asia conflict. Apart from that, some banks offer higher interest rates for deposits worth ₹1 crore and above amid challenges in retail deposits mobilization, due to which their cost of funds goes up,” said Saurabh Bhalerao, associate director, CareEdge Ratings.
Growth in deposits with scheduled commercial banks accelerated to 11.5 per cent year-on-year as of end-March 2026, compared with 10.6 per cent a year earlier. Deposit growth remained broad-based, with bank branches across all population groups recording double-digit growth.
The data also pointed to a structural shift in the composition of deposits over the past five years. The share of savings deposits in aggregate deposits declined to 28.7 per cent in March 2026 from 34.6 per cent in March 2022. In contrast, the share of term deposits rose to 61.6 per cent from 55.2 per cent during the same period, reflecting depositors’ preference for higher-yielding fixed-income instruments amid elevated interest rates.
Public sector banks emerged as the largest contributors to deposit accretion during FY26, accounting for 50.8 per cent of incremental deposits, followed by private sector banks with a contribution of 38.6 per cent. Regional rural banks, however, saw their share in deposit mobilisation decline to 2.9 per cent in March 2026 from 3.2 per cent four years earlier.
The maturity profile of deposits has also undergone a significant shift. The share of term deposits with original maturity between one and three years rose to 69.8 per cent in March 2026 from 50.4 per cent in March 2022. At the same time, the proportion of deposits with maturity of up to one year declined sharply to 8.8 per cent from 16.7 per cent.
Meanwhile, the data also showed that the share of term deposits carrying interest rates below 7 per cent surged to 61.8 per cent in March 2026 from 27.3 per cent in the previous year.
Households continued to remain the largest source of deposits, accounting for 59.3 per cent of total deposits as of end-March 2026, though their share moderated in recent years.
Deposits from the non-financial sector rose to 18.5 per cent from 17.7 per cent a year earlier, while the share of financial corporations increased to 7.8 per cent from 6.8 per cent.
The share of senior citizens in total deposits remained broadly stable over the last four financial years and stood at 20 per cent in March 2026, according to the RBI data.
Meanwhile, RBI data showed that the share of bank loans carrying interest rates below 9 per cent rose sharply to 64.2 per cent as of end-March 2026 from 43.9 per cent a year earlier, reflecting the transmission of monetary policy actions into lending rates. Within term loans, which accounted for 62.8 per cent of total bank credit, the share of loans carrying interest rates below 10 per cent stood at 80.2 per cent.
The RBI data also pointed to a moderation in personal loan growth to 12.9 per cent on-year, after several years of outpacing overall credit growth. Additionally, lending to the private corporate sector gained momentum. Loans to this sector, which accounted for more than one-fourth of total bank credit, grew 15.5 per cent in FY26, compared with 11.9 per cent a year earlier.
Agricultural credit growth accelerated to 14.4 per cent from 8.1 per cent a year earlier, while industrial credit growth rose to 12 per cent from 9.4 per cent.