Mumbai, Aug. 5 -- Lower real interest rates have not hurt deposit mobilisation in India, with deposit growth improving despite a decline in real interest rate, according to an SBI Ecowrap report.

The report said the weighted average domestic term deposit rate on fresh deposits declined by 63 basis points, while the rate on outstanding deposits softened by 51 basis points following the cumulative 125 basis points reduction in the policy repo rate between February and June 2026.

During the same period, the real interest rate fell from 2.52 per cent in January 2026 to 0.87 per cent in June 2026.

Despite this, deposit growth improved from 12.3 per cent in January 2026 to 13.3 per cent in June 2026. Excluding FCNR(B) deposits, deposit growt...