According to RBI data released on Monday, people over 40 years of age account for over three-fourths of individual deposits in the country's banks as of June 2026. Those aged between 25-40 years, who are in working age, account for a little less than 20 per cent of the individual deposits. This data reveals a significant demographic shift in banking patterns, with older individuals maintaining dominant control over bank deposits.
The overall deposit growth for scheduled commercial banks came at 11.5 per cent year-on-year at the end of the quarter, compared with 11.3 per cent last year, as reported by the RBI. Private banks witnessed a 13.8 per cent growth while public sector banks trailed at 10.3 per cent, marking a 150 basis points gap between the two segments. Term deposits, the primary driver of deposit accumulation, recorded growth of 12.9 per cent in June 2026, outpacing the 5.3 per cent growth of current deposits and 10.6 per cent in savings deposits. Term deposits of size ₹1 crore and above accounted for 47.3 per cent of the total term deposit as at end-June 2026, with 35.7 per cent coming from deposits of size ₹5 crore and above.
Bank credit growth at the end of June accelerated to 16.5 per cent in June as against 9.9 per cent in the year-ago period, driven by the corporate sector loans, which grew at 21.1 per cent, according to the RBI data. Bank borrowings by the private corporate sector accelerated to 21.1 per cent at end-June 2026, marked up from 7.9 per cent in the previous year. Credit to female individual borrowers expanded at a faster-than-average clip at 19.7 per cent in June 2026 as compared to 12.9 per cent in June 2025. The household sector remained the largest contributor, holding 58.8 per cent of total deposits as at end-June 2026 and accounting for 98.9 per cent of the 'incremental deposits' during the quarter. 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, with working capital loans improving to 18.0 per cent from 13.4 per cent.
The share of loans bearing interest rate below 9 per cent increased to nearly two-thirds in June 2026, from 54.1 per cent in June 2025, as reported by the RBI. The weighted average lending rate (WALR) on outstanding credit eased by 45 basis points to 9.26 per cent in June 2026 from 9.71 per cent a year earlier. 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. 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 remained broad based across major sectors, with credit to trade (18.1 per cent) and finance (22.4 per cent) expanding at a pace higher than that of the total credit. Credit to agriculture (15.1 per cent), industry (15.5 per cent) and personal loans (12.7 per cent) also registered acceleration. Credit growth showed significant regional variations, with credit growth above 21 per cent in rural, semi-urban and urban centres compared to 13.1 per cent in metropolitan centres. Rural areas recorded 21.1 per cent growth, up from 12.8 per cent year earlier, while semi-urban credit grew 21.6 per cent and urban credit increased 21.4 per cent. Among bank groups, credit growth was 17.3 per cent for public sector banks, 20.5 per cent for private sector banks, 14.8 per cent for foreign banks and 25.1 per cent for small finance banks.
