Bank deposits grew by 11.5% year-on-year as at quarter ended June 2026 compared to 11.3% a year ago and 11.6% a quarter ago, with semi-urban and rural branches outpacing the growth observed at the aggregate level.

Private sector banks’ deposit growth accelerated by 1.4 percentage points to 13.8% as at end June 2026, according to the Reserve Bank of India’s latest Quarterly Basic Statistical Return (BSR) report.

Public sector banks lagged behind at deposit growth of 10.3% in June 2026 even as they inched up from 10.2% a year ago.

The household sector remained the largest contributor, holding 58.8% of total deposits as at end-June 2026 and accounting for 98.9% of the 'incremental deposits' during the quarter.

Term deposits, the primary driver of deposit accumulation, recorded growth of 12.9% in June 2026, outpacing the growth of current deposits (5.3%) and savings deposits (10.6%).

The term deposits – carrying an original maturity of one to three years – accounted for nearly 70% of the total term deposits as at June 2026, while the short-term deposits with an original maturity period up to one year constituted 20.4%.

The share of term deposits bearing interest rate of less than 7% has increased to more than two thirds of total term deposits as on June 2026 (35% a year ago).

The term deposits of size ‘Rs 1 crore and above’ accounted for 47.3% of the total term deposit as at end June 2026, of which 35.7% came from the deposits of size ‘Rs.5 crore and above’.