Bank deposits grew by 10% in FY25, growth decline from 13% recorded in FY24: RBI Data

Despite the slower growth, the overall deposit base remains strong. Term deposits continued to make up the largest share of total deposits, accounting for 59.5 per cent as of March 2025.

This was slightly lower than the 60 per cent recorded in the previous year. Savings deposits saw a drop in share to 29.1 per cent from 30.8 per cent in March 2024 and 33 per cent in March 2023. Current deposits, however, remained steady at 9.8 per cent.

The RBI data showed a clear trend of increasing preference for term deposits over the past few years. Higher interest rates on these deposits encouraged more people to invest in them.

The RBI said, "Nearly 68.4 per cent of term deposits had the original maturity of one to three years as on March 2025".

Also, the share of term deposits offering interest rates of 7 per cent and above rose significantly to 72.7 per cent in March 2025 from 64.2 per cent in March 2024 and 33.5 per cent in March 2023.

Large-sized deposits also grew. Term deposits of Rs. one crore and above made up 45.1 per cent of total term deposits in March 2025, up from 43.7 per cent in the previous year.

RBI also noted that the households continued to be the main contributors to bank deposits, accounting for 60.2 per cent of the total in March 2025. Within this, female depositors held a 20.7 per cent share. Senior citizens' deposits made up 20.2 per cent of the total deposits.

It also highlighted that the growth varied by region. Bank branches in metropolitan areas saw the highest deposit growth at 11.7 per cent in March 2025. Rural areas recorded 10.1 per cent growth, semi-urban areas 8.9 per cent, and urban centres 9.3 per cent.

The RBI data suggests that while overall deposit growth remains healthy, there is a shift in deposit composition, with term deposits gaining more popularity due to higher returns. (ANI)