Deposits in scheduled commercial banks grew by 11.5 per cent year-on-year (YoY) at the end of the quarter as compared with 11.3 per cent last year, while credit grew by 16.5 per cent as against 9.9 per cent YoY in the year-ago period.
As of June 2026, the share of term deposits bearing an interest rate of less than 7 per cent had increased to more than two-thirds of total term deposits from 35 per cent a year ago.
Private sector banks’ deposit growth accelerated by 1.4 percentage points to 13.8 per cent at end June 2026, while deposits held by public sector banks inched up to 10.3 per cent in June 2026 from 10.2 per cent a year ago.
Term deposits, which are the primary drivers of deposit accumulation, recorded a growth of 12.9 per cent in June 2026, outpacing current deposits and savings deposits, which came in at 5.3 per cent and 10.6 per cent respectively.
Term deposits of ₹1 crore and above accounted for 47.3 per cent of total term deposits at end June 2026, of which 35.7 per cent were deposits of ₹5 crore and above.
Term deposits with an original maturity of one to three years accounted for nearly 70 per cent of total term deposits as of June 2026, while short term deposits with an original maturity period up to one year constituted 20.4 per cent.
Credit growth of banks accelerated to 16.5 per cent as of end-June 2026 from 9.9 per cent a year ago. Credit acceleration was broad-based across all population and bank groups.
Bank borrowings by the private corporate sector accelerated to 21.1 per cent at end-June 2026, sharply up from 7.9 per cent in the previous year. Loans to public and household sectors also recorded a robust growth of 14.6 per cent and 15.2 per cent, respectively, in June 2026.
Term loans, which comprised 64.1 per cent of total bank credit, grew by 15.4 per cent in June 2026 as compared with 8.3 per cent a year ago. Growth in working capital loans improved to 18 per cent from 13.4 per cent over the same period.
Credit growth remained broad-based across major sectors; credit to trade was 18.1 per cent and finance was 22.4 per cent, outpacing total credit growth. Credit to agriculture grew by 15.1 per cent, industry was up by 15.5 per cent and personal loans increased by 12.7 per cent.
