NRI deposits in Kerala banks go up

Wednesday, 07 January 2004, 20:30 IST
Printer Print Email Email
THIRUVANANTHAPURAM: Commercial banks in Kerala have registered a rise in deposits by non-resident Indians (NRI) in the second quarter of fiscal year 2003-04 even though the total deposits have come down. The latest figures released by the State Level Bankers Committee (SLBC) which met here Tuesday showed that the total NRI deposits went up to Rs 289.97 billion in the quarter ended September 30, 2003, as compared to Rs 288.70 billion in the first quarter. However, the total deposits went down from Rs 617.76 billion in the first quarter to Rs 611.18 billion in the second quarter. The State Bank of Travancore continues to top the financial institutions receiving NRI deposits. Today it has a record Rs 67.73 billion followed by The Federal Bank with Rs 41.85 billion and State Bank of India with Rs 36.06 billion. Another positive change in Kerala's banking has been the slight increase in the credit-deposit ratio. It went up from 44.65 percent to 46.69 percent during the second quarter. Senior SBI banker V.K.Bhatt attributed these swings to falling interest rates. "Today the NRI rupee deposits fetch just three percent interest and foreign currency non-resident accounts on dollar is a mere 2.58 percent interest," Bhatt said adding that investors today appear to put more money in the stock market and in real estate. "It is only the conservative non-resident Keralites that continue putting money in the bank," he said pointing out that despite low rates of interest everywhere, NRIs continue to deposit their money here. Kerala today has a record 1.3 million population living in the Middle East, which is the major source of these NRI deposits. Another 300,000 reside in the US, Britain and Europe.
Source: IANS
siliconindia