PSBs raise term deposit rates to reclaim deposit market share

Public sector banks raised fresh term deposit rates by 15 basis points to 6.33% in May from 6.18% in April, while private sector banks cut rates by 5 basis points to 5.96%. PSB deposit market share has fallen to 57% in March 2025 from 76% at the end of 2013-14, while private banks grew their share to 36.4% from 19.4%. With credit-deposit ratio elevated at 82.5%, PSBs are prioritising deposit mobilisation over near-term margins, narrowing the growth gap with private peers.