Since March 2024, the aggregate deposit growth of scheduled commercial banks has continued to fall in successive half years and reached 9.8% as of end-September 2025.

This trend has been led by sharp deceleration for private banks, with deposit growth falling from over 20% in March 2024 to 10.1% as of September 2025. For public sector banks, the deposit growth during this period has remained steady and was at 9.4% as of September 2025.

The fall in share of low-cost CASA (current account savings account) deposits and rise in share of time deposits across bank groups continued, the RBI said in its half-yearly Financial Stability Report.

The CASA share in total deposits of scheduled commercial banks stood at 37.5% as of end-September 2025, down from around 40% in March 2024.

On the bank credit front, growth remained steady at 11% year-on-year at end-September 2025.

“Credit growth of state-run lenders fell marginally but private banks more than compensated with higher growth. However, growth of the state-owned banks continued to outpace that of private banks,” the RBI report said.

In sectoral composition, the shares of agricultural and industrial loans in aggregate credit contracted, while those of services and personal loans expanded over the previous year. The share of industrial loans stood at 22.6% as of 30 September 2025, down from 23.1% in March 2024. This was less sharp in case of agriculture loans, which fell to 13% from 13.3% during this period.

Personal loans expanded to 33.8% as of end-September 2025 from 33.3% a year ago. Similarly, loans from services increased to 29.5% from 29% during this period.

“Industrial loans growth for private lenders and personal loans of public sector lenders show sharp growth in the September quarter," the RBI report said.

Within personal loans, banks’ credit growth year-on-year in auto and other personal loans increased in September 2025 as compared with March 2025, amid broad-based deceleration in other sub-segments.

Personal loans continued to be dominated by housing loans with a share of 45.6%, followed by other personal loans with 37.3%, the RBI report said.