The deposit growth of SCBs in semi-urban and urban areas also lies behind the average increase in the population groups, with their deposits that grow 22 times and 26 times in the past 25 years | Photocredit: Prashanth Vishwanathan
Loans indicate “Bharat” (National India) and the mobilization of deposits of it appears to have proved to be relatively challenging for planned commercial banks (SCBS) in the past quarter century, according to RBI data.
This is confirmed by the fact that the credit expression of SCBs and Deposito accretion in the countryside of India remains that of semi-urban, urban and metropolitan areas.
An inspection of RBI data shows that although the outstanding loan from SCBs in the countryside of India at the end of March 2025 multiplied over the past 25 years, it still behind the total average increase of approximately 41 times for all areas (population groups) -land, Semi-Stedelijkrolentdan.
A similar trend prevails on the sealing front. The deposits of SCBs in the countryside increased about 20 times during the aforementioned period, whereby the average growth of approximately 28 times remains for all areas.
The deposit growth of SCBs in semi-urban and urban areas also lies behind the average increase in the population groups, with their deposits that grow 22 times and 26 times in the past 25 years respectively. These banks did well in metropolitan centers, with their deposits that jumped 36 times.
Fast urbanization
This development is even because the majority of the Indian population continues to live in the hinterland in the midst of rapid urbanization.
The share of the urban population in the total population has increased from 28 percent of the total population in 2000 to 37 percent in 2024, per data from the World Bank
Accordingly, the share of the rural population in the total population fell from 72 percent of the total population in 2000 to 63 percent in 2024.
In general, the 41 times increasing outstanding credit over the past 25 years surpasses the 28 times increase in outstanding deposits. At the same time, the credit deposits between population groups increased in 2025 to 80 percent of 56 percent in 2000.
Banking Expert against Viswanathan noted that one thing that is clear is that the deposit growth is less than the growth of all segments.
“Mobilization of deposits is less than potential in national and semi-urban segments and to a certain extent in the urban segment.
“The urban and sub-segments attract the bankers’ attention when improving their credit and deposit portfolio,” he said.
Furthermore, the growth of progress in rural and semi-urban segments is pathetically low compared to growth in urban and metro segments. The rise of the retail trade probably explains the growth of progress in urban and metro lines.
Published August 31, 2025
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