1 year ago
Shift in Bank Deposits as Personal Loans Increase
Banks are changing where they keep their money and who they lend to.
Metro cities have a larger share of bank deposits than before, but their share in bank loans is decreasing.
Banks are lending more money to people for personal use.
More people are moving from big cities to smaller towns, leading to an increase in bank deposits there too.
Overall, banks are trying to spread their money around more evenly, which is good for those regions.
Share of bank deposits in metro cities rose to 53.2% in March 2025 from 50.9% in 2020.
Share of bank credit in metro cities declined to 58% from 63% during the same period.
Credit to individuals accounted for 47.8% of total loans in March 2025, up from 41.5% in 2020.
Personal loans are the fastest-growing category, though growth slowed to 13.2% in FY25.
Share of female borrowers in personal loans rose to 23.8%.
- Who
- Banks, borrowers, and individuals
- What
- Shift in bank deposit and credit distribution across different regions in India
- Where
- India (Metro cities, urban, semi-urban, and rural areas)
- When
- March 2025 (data from 2020 to March 2025)
- Why
- Driven by banks' preference for personal loans and movement of people and capital to semi-urban areas.
Key facts
- Metro Cities Share of Deposits (March 2025)
- 53.2%
- Metro Cities Share of Deposits (2020)
- 50.9%
- Metro Cities Share of Credit (March 2025)
- 58%
- Metro Cities Share of Credit (2020)
- 63%
- Credit to Individuals (March 2025)
- 47.8%
- Credit to Individuals (2020)
- 41.5%
