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The Reserve Bank of India (RBI) has published its much-awaited Quarterly Basic Statistical Returns (BSR)-I on Credit and BSR-2 on Deposits with Scheduled Commercial Banks for the quarter ending June 2025. These detailed reports provide an extensive overview of the banking sector's credit and deposit landscape, offering key data on credit growth, sector-wise credit distribution, deposit trends, and maturity profiles. This comprehensive data is critical for understanding the flow of funds within the Indian economy and aiding stakeholders in making informed decisions.
Key Insights From The Quarterly BSR Reports
The reports reveal steady credit expansion by Scheduled Commercial Banks (SCBs) amid a moderate growth in overall deposits.
There is a noticeable shift toward term deposits within the aggregate deposits portfolio.
Sector-wise credit data highlights lending patterns, including priority sectors and industry loans.
The maturity profile of term deposits and demographic ownership details provide deeper deposit insights.
Regional distribution of deposits and credit reflect geographical economic activities with concentration in key states.
Credit Growth And Sectoral Allocations Highlighted In BSR-I
Credit by Scheduled Commercial Banks continued to maintain steady growth through June 2025. The flow of credit to various sectors reflects the ongoing economic priorities and monetary policy impacts:
Credit growth showed moderate expansion compared to previous quarters, supporting core sectors such as agriculture, manufacturing, infrastructure, and services.
Priority sector lending continues to be a significant part of credit allocation, promoting inclusive economic participation.
Credit to micro, small, and medium enterprises (MSMEs) remained robust, critical for employment and economic resilience.
Retail credit demand, encompassing personal loans and housing finance, sustained upward movement, reflecting consumer confidence and demand.
Deposit Trends And Shifts Under BSR-2 Overview
Deposits with Scheduled Commercial Banks registered year-on-year growth of approximately 11.3% by June 2025, slightly below the 11.7% growth of the previous year. Insightful trends include:
Term deposits increased their share in total deposits to 62.2%, up from 61% a year ago, indicating a preference for fixed-term savings amid changing interest rate scenarios.
Savings deposits grew at a comparatively modest rate of 5.4%, showing a shift in depositor behavior toward longer-term instruments.
Household deposits represented 59.9% of total deposits, a slight decline from 60.8%, while financial corporations’ deposits increased to 7% from 6% year-over-year.
Senior citizens accounted for 20.4% of total deposits, reflecting their growing participation in fixed income investments.
Maturity Profile And Deposit Demographics
A majority of term deposits, nearly 70%, belonged to the original maturity bracket of 1 to 3 years, with short-term deposits maturing within one year making up around 20%. This distribution reveals depositor preference for mid-term investment horizons reflecting balanced risk and liquidity considerations.
The deposit base is well-distributed across urban, semi-urban, rural, and metropolitan centers.
Key states such as Maharashtra, Delhi National Capital Region, Karnataka, Uttar Pradesh, and Tamil Nadu accounted for over half of total deposits, signifying concentration in economic hubs.
Gender-wise data highlighted that female depositors held around 20.7% of deposits as of March 2025, indicating increasing inclusivity in financial savings.
Institutional And Regional Distribution Patterns
Evaluating SCBs by ownership and regions reveals:
Public sector banks held approximately 57.3% of total deposits with a growth rate of 10.2%, while private sector banks contributed 36% share with a higher growth rate of 12.4%.
The geographical distribution points to large metropolitan areas and commercial centers as dominant holders of deposits and credit, with ongoing growth in tier 2 and 3 cities.
Implications For The Financial Ecosystem
These Quarterly Basic Statistical Returns are indispensable for multiple stakeholders:
Policymakers monitor credit flow and deposit trends closely to adjust monetary policy and ensure credit availability in priority sectors.
Banks use the insights to align lending strategies and manage liquidity effectively.
Investors and analysts derive cues on economic momentum, banking health, and risk.
Consumers and businesses understand broader credit and savings patterns shaping loan availability and interest rates.
Conclusion
The RBI’s BSR-I and BSR-2 reports for June 2025 offer a detailed lens into India’s banking sector’s credit and deposit dynamics. With steady credit growth supporting critical sectors and a discernible shift to term deposits by households, the data signals ongoing financial stability coupled with evolving depositor preferences. Monitoring these trends will be vital for economic stakeholders aiming to navigate the financial landscape in the months ahead.
Source: Reserve Bank of India, The Hindu Business Line, Press Information Bureau, Ministry of Statistics and Programme Implementation (MoSPI)
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