Share of term deposits in total deposits rises to 62.2% in June 2025
August 29, 2025
RBI's Q1 FY2026 report shows term deposits rising, household deposits declining, and interest rates shifting in June 2025.
The share of term deposits in total deposits rose in the first quarter of FY26 even as the share of ‘Household’ deposits declined vis-a-vis year ago quarter, according to RBI’s Quarterly Basic Statistical Return (BSR).
Term deposits recorded a growth (year-on-year) of 13.5 per cent, significantly outpacing the saving deposits growth of 5.4 per cent in June 2025, per the central bank’s statement on BSR.
Consequently, the share of term deposits in total deposits increased to 62.2 per cent from 61 per cent in June 2024. Senior citizens owned 20.4 per cent of the total deposits as at end-June 2025.
The share of ‘Household’ deposits witnessed modest decline in recent period to 59.9 per cent in June 2025 compared to that of 60.8 per cent in June 2024, RBI said.
The corresponding share of ‘Financial Corporations’ moved up to 7 per cent in June 2025 against 6 per cent a year ago.
RBI noted that transmission of the recent monetary easing became evident in the interest rate structure of term deposits as the proportion of such deposits bearing higher interest rates of ‘7 per cent and above’ declined to 65 per cent in June 2025 compared to 66.9 per cent a year ago.
RBI noted that nearly 70 per cent of term deposits accounted for original maturity bucket of 1-3 years in June 2025, whereas around 20 per cent of term deposits were short-term deposits with maturity of less than one year.
Deposits growth of public sector banks and private sector banks stood at 10.2 per cent and 12.4 per cent, respectively, in June 2025; whereas their corresponding shares in deposits were hovering at 57.3 per cent and 36.0 per cent, respectively.
Top five States/ Union Territories (Maharashtra, NCR of Delhi, Karnataka, Uttar Pradesh and Tamil Nadu) collectively accounted for 54.3 per cent of total deposits and 47.8 per cent of ‘Household’ deposits as at end-June 2025.
Bank deposits with Scheduled Commercial Bank’s registered a yoy growth of 11.3 per cent as at end-June 2025 as compared with that of 11.7 per cent in the same period previous year.
Published on August 29, 2025
Term deposits recorded a growth (year-on-year) of 13.5 per cent, significantly outpacing the saving deposits growth of 5.4 per cent in June 2025, per the central bank’s statement on BSR.
Consequently, the share of term deposits in total deposits increased to 62.2 per cent from 61 per cent in June 2024. Senior citizens owned 20.4 per cent of the total deposits as at end-June 2025.
The share of ‘Household’ deposits witnessed modest decline in recent period to 59.9 per cent in June 2025 compared to that of 60.8 per cent in June 2024, RBI said.
The corresponding share of ‘Financial Corporations’ moved up to 7 per cent in June 2025 against 6 per cent a year ago.
RBI noted that transmission of the recent monetary easing became evident in the interest rate structure of term deposits as the proportion of such deposits bearing higher interest rates of ‘7 per cent and above’ declined to 65 per cent in June 2025 compared to 66.9 per cent a year ago.
RBI noted that nearly 70 per cent of term deposits accounted for original maturity bucket of 1-3 years in June 2025, whereas around 20 per cent of term deposits were short-term deposits with maturity of less than one year.
Deposits growth of public sector banks and private sector banks stood at 10.2 per cent and 12.4 per cent, respectively, in June 2025; whereas their corresponding shares in deposits were hovering at 57.3 per cent and 36.0 per cent, respectively.
Top five States/ Union Territories (Maharashtra, NCR of Delhi, Karnataka, Uttar Pradesh and Tamil Nadu) collectively accounted for 54.3 per cent of total deposits and 47.8 per cent of ‘Household’ deposits as at end-June 2025.
Bank deposits with Scheduled Commercial Bank’s registered a yoy growth of 11.3 per cent as at end-June 2025 as compared with that of 11.7 per cent in the same period previous year.
Published on August 29, 2025