Savings deposits with commercial banks surge 374% in 15 years to ₹65.3 lakh crore: ASSOCHAM

Savings deposits with scheduled commercial banks (SCBs) have grown nearly fivefold over the past 15 years, rising from ₹13.77 lakh crore in FY10-11 to ₹65.33 lakh crore in FY2024-25, reflecting the success of financial inclusion initiatives and the continued resilience of India's banking system, according to an ASSOCHAM report. 

The report said total savings deposits registered a 374% cumulative increase during the period while deposits expanded 158% over the last decade, from ₹25.36 lakh crore in FY15-16 to ₹65.33 lakh crore in FY24-25. 

The growth has been driven by wider banking penetration, digital banking adoption, and increasing household participation in the formal financial system. However, the pace of deposit growth has moderated in recent years as households increasingly diversify their savings into market-linked investment products such as equities and mutual funds. 

According to the report, annual savings deposit growth averaged 14.4% between FY10-11 and FY14-15, rose to 14.8% during FY15-16 to FY19-20, but slowed to 8.6% in the post-pandemic period (FY20-21 to FY24-25). 

Indian banks dominate savings mobilisation 

Indian banks accounted for 99.1% of total savings deposits in the banking system as of March 2025, highlighting their dominant position in retail banking. 

Over the past 15 years, savings deposits with Indian banks grew 384%, significantly outpacing the 49% growth recorded by foreign banks. The report attributed the strong performance of Indian banks to their extensive branch network, expanding retail customer base, financial inclusion programmes such as the Pradhan Mantri Jan Dhan Yojana (PMJDY) and rapid adoption of digital banking. 

Foreign banks, on the other hand, continue to focus primarily on corporate banking, trade finance, institutional clients, and wealth management, resulting in a relatively smaller retail deposit base. 

Households remain the biggest contributors 

Households continue to account for the largest share of bank deposits. According to RBI data cited in the report, the household sector accounted for 60.2% of total scheduled commercial bank deposits as of March 2025, while female depositors contributed 20.7% of total deposits, reflecting increasing financial inclusion and greater participation in formal banking. The report noted that the post-pandemic period has witnessed a structural shift in household financial savings towards market-linked instruments. 

Citing the Economic Survey 2025-26, ASSOCHAM said the number of equity investors increased from around 3.1 crore in FY20 to over 11 crore by FY25, reflecting growing retail participation in capital markets. 

RBI data also showed that the share of equities and investment funds in household financial assets increased from 15.7% in March 2019 to 23% by March 2025. 

Meanwhile, assets under management (AUM) of mutual funds rose from less than 10% of GDP in the early 2010s to 23% of GDP by FY26 (as of November 2025), exceeding ₹80 lakh crore. 

Despite this shift, the report said bank deposits have remained resilient as households continue to retain savings accounts as a core component of their financial portfolios. 

Demonetisation and COVID drove deposit surges 

The report identified three distinct phases in savings deposit growth over the past 15 years. 

During FY10-11 to FY14-15, deposits grew steadily, supported by rising incomes, expanding banking networks and financial inclusion. 

The second phase, spanning FY15-16 to FY19-20, was marked by the impact of demonetisation in November 2016. Indian banks recorded their highest annual savings deposit growth of 34% in FY16-17 while foreign banks posted a 21% increase, as surplus cash flowed into the banking system. 

However, deposit growth has since normalised, with Indian banks recording 3.5% growth in FY24-25, the slowest in the past 15 years, reflecting the migration of household savings towards equities and other investment products. 

Banking system remains resilient 

Despite moderation in growth, ASSOCHAM said India's savings deposit base remains structurally strong and well-positioned to support long-term economic growth. 

The report highlighted that savings deposits remain a low-cost and stable funding source for banks, supporting credit creation, financial intermediation and monetary policy transmission. It added that continued financial inclusion, digital banking expansion, supportive regulatory measures and sustained household engagement with formal finance are expected to further strengthen India's banking system in the coming years.