NRI deposits in Kerala zoom to 5K cr in one year

Written by fe Bureau | Thiruvananthapuram | Updated: Jun 27 2009, 04:10am hrs
Amidst slowdown tidings from Gulf, Indian expats are in a scramble to park their overseas earnings in Indian banks, according to the latest indications from banking circles. NRI deposits in banks in Kerala enjoying remittances from nearly 20 lakh expatshave logged a phenomenal surge of over Rs 5,000 crore in a single year.

Look at the NRI deposit data churned out by a State level Bankers Committee in Kerala capital this week: Total NRI deposits on March 31, 2009 has touched Rs 37,019 crore. This was Rs 34,649 crore on December 2008 and Rs 31,865 crore on June 2008.

What is interesting is that NRI deposits had dipped to Rs 29,889 crore in March 2008. Further, an year back it had surged to a peak of Rs 33,330 crore in March 2007.

Over the year the earnings of NRIs from Kerala have made a beeline to Indian banks by about 16%. In the last three months alone, NRI deposits in Kerala banks have grown by Rs 2,370 crore, showing a higher pace of confidence growth.

The State Bank group hogged the biggest share42.62 %of the total NRI deposits with Rs 15,779 crore. Private sector banks, which received Rs 10,316 crore, came second. At Rs 10,249 crore, other nationalised banks could claim only 27.68%. Total deposits in Kerala banks have also surged to Rs 1,30,350 crore on March 2009. In March 2008, this was Rs 1,05,488 crore. To a certain extant, this also shows a trend of domestic property seller logging in money to his domestic account as an NRI invests in real estate, says a senior banking official.

Kerala government, however, is not too amused by the fall in advances as a percentage of deposits. Especially in the face of deposit high, lending to scheduled castes and tribes badly needs brushing up, state chief secretary Neela Gangadharan cautioned the banks.