RBI Data: Over 40s Dominate Bank Deposits (76%)

New data from the Reserve Bank of India (RBI) for June 2026 reveals that individuals above 40 years old are responsible for 76% of all individual bank deposits across India. This highlights a significant disparity compared to younger working-age groups.

Deposit Demographics Highlight Generational Gap

The RBI’s findings indicate that individuals aged between 25 and 40, typically considered the working age, contribute less than 20% to these total deposits. This trend aligns with previous observations by policymakers, who noted a preference among younger generations for capital market instruments.

Instead of traditional bank deposits, younger demographics often favor investments.

These include shares and mutual funds, reflecting a shift in financial preferences.

Overall Deposit and Credit Growth Trends

Scheduled commercial banks collectively experienced an 11.6% year-on-year growth in overall deposits. This growth was not uniform across all banking sectors.

Private banks saw deposit growth of 13.8%.

Public sector banks recorded deposit growth of 10.3%.

The household sector remained the largest contributor, accounting for 58.8% of total deposits and 98.9% of incremental deposits in the quarter ending June 2026.

Term deposits were the primary driver of accumulation, growing by 12.9%. This outpaced growth in current deposits, which increased by 5.3%, and savings deposits, which saw a 10.6% rise.

Significant portions of term deposits were concentrated in higher value segments.

Term deposits of Rs 1 crore and above constituted 47.3% of total term deposits.

Deposits of Rs 5 crore and above made up 35.7% of total term deposits.

Bank credit growth also accelerated to 16.5% in June 2026, a notable increase from 9.9% in the previous year. This expansion was largely fueled by the corporate sector.

Corporate sector loans grew by 21.1%.

Credit to female individual borrowers increased by 19.7% in June 2026, up from 12.9% in June 2025.

Lending Rates and Market Conditions

The landscape for lending rates also shifted, with a larger proportion of loans now carrying lower interest rates. Nearly two-thirds of loans in June 2026 had interest rates below 9%, a rise from 54.1% in June 2025.

This trend contributed to a decrease in the Weighted Average Lending Rate (WALR) on outstanding credit. The WALR declined by 45 basis points, reaching 9.26% in June 2026.

These figures underscore an evolving financial landscape in India, where traditional banking remains strong for older demographics, while overall credit and deposit growth show robust activity across various segments, influenced by shifting investment preferences and lending dynamics.