# Deposit growth stays firm as real returns fall, private banks lead 2026-08-15T08:50:51+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 2 independent outlets Bank deposit growth in India remains resilient even as inflation-adjusted returns have fallen sharply, according to SBI Research. Deposit growth rose to 13.3% in June 2026 from 12.3% in January, while the real interest rate on deposits declined from 2.52% to 0.87% over the same period. The analysis found no evidence that lower real interest rates necessarily lead to weaker deposit growth in India. Private-sector banks outpaced their public-sector peers in the June quarter, with higher aggregate profits and faster deposit growth, Bloomberg data cited by Livemint shows. Eighteen private banks reported aggregate net profit of Rs 55,019 crore, compared with Rs 50,173 crore for 12 PSU banks. Private-bank deposits rose 14% year-on-year to Rs 96.59 lakh crore, against 10.1% growth for PSUs to Rs 157.25 lakh crore. However, PSU banks recorded sharper improvements in asset quality, with gross NPAs declining 13.1% year-on-year. Term deposits accounted for 61.6% of total deposits in March 2026, up from 55.2% in March 2022, while savings deposits fell. Banks continue to compete for funds as credit growth outpaces deposit growth. Livemint reports that going forward, Motilal Oswal Financial Services expects growth in private banks to recover, with the segment likely to outpace PSUs. ## Coverage - bfsi.economictimes.indiatimes.com - livemint.com Tags: FCNR(B), India, RBI, State Bank of India Canonical: https://indianopinion.org/indian-deposit-growth-rises-despite-falling-real-returns/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/indian-deposit-growth-rises-despite-falling-real-returns/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.