Bank deposit growth slips to 7-qtr low of 9.9% in Q2

The rural, semi-urban and urban branches registered 11.7 per cent, 10.7 per cent and 9.5 per cent deposit growth, respectively, during the same period, the RBI’s quarterly data on bank deposits said.

Metropolitan branches, having larger share of deposits, exhibited moderation in deposit growth to 9.6 per cent in September 2025 from 12.7 per cent a year ago.

Scheduled commercial banks’ deposits growth slowed to a seven-quarter low of 9.9 per cent in the July-September 2025 period, compared to a 11.7 per cent growth a year-ago, the Reserve Bank of India (RBI) data showed.

Metropolitan branches, having larger share of deposits, exhibited moderation in deposit growth to 9.6 per cent in September 2025 from 12.7 per cent a year ago.

The rural, semi-urban and urban branches registered 11.7 per cent, 10.7 per cent and 9.5 per cent deposit growth, respectively, during the same period, the RBI’s quarterly data on bank deposits said.

During the September quarter, public sector banks (PSBs) recorded an improvement in share of deposits to 57.6 per cent from 57.3 per cent in the previous quarter.

Private sector bank deposit growth declined to 10 per cent in September from 15.1 per cent a year ago.

In the reporting quarter, there was a declining trend in term deposit growth (11.6 per cent). However, growth in current (9.3 per cent) and savings deposits (6.7 per cent) was higher in Q2 FY26.

At the end of September, 69.8 per cent of term deposits were held under the original maturity bucket of ‘one to three years’ compared with 66.8 per cent a year ago, and 20 per cent of term deposits were held under maturity period up to one year.

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The share of term deposits bearing interest rate of less than 7 per cent surged to 46 per cent in September from 31.2 per cent a year ago, the data showed.