Ahmedabad: Non-Resident Indian (NRI) deposits in Gujarat experienced a remarkable surge of 18% during the 2024-25 financial year, marking the highest growth rate observed in the past five years.
According to the latest State-Level Bankers’ Committee (SLBC) report, the total value of NRI deposits across banks in Gujarat reached Rs 1,09,101.80 crore by March 2025. This is a significant increase from Rs 92,339.75 crore recorded in March 2024, which had seen only a marginal 0.45% rise. Earlier figures show a 14% increase to Rs 91,923.69 crore in March 2023 compared to Rs 80,182.76 crore in March 2021. Deposits in March 2020 stood at Rs 80,109.21 crore, with minimal change noted between 2020 and 2021. The SLBC report did not provide data for the fiscal year ending March 2022.
Banking sector sources, including a TNN report, attribute this substantial increase primarily to the appreciation of the US dollar against the Indian rupee. This currency trend has made foreign currency deposits considerably more appealing for NRIs aiming to maximize returns on their remittances.
Beyond favorable currency movements, several other factors have contributed to this upward trajectory. Ajay Patel, chairman of the Gujarat State Co-operative Bank, highlighted Gujarat’s strong and long-standing diaspora, noting their consistent connection and investment in India’s growth narrative. Co-operative banks, which are authorized to accept NRI deposits, have also reported increased inflows in recent years.
Furthermore, there’s a growing awareness among NRIs regarding diverse investment opportunities in India. These include real estate, infrastructure bonds, and various government-backed schemes, many of which necessitate initial fund parking through NRI deposit accounts, as confirmed by bankers. A notable rise in remittances from Gujarati-origin NRIs in the United States, Canada, the United Kingdom, and the Gulf countries has also fueled the increase in deposits.
As global economic uncertainties persist and currency values remain volatile, Gujarat’s banking sector is anticipated to continue serving as a reliable channel for diaspora funds in the foreseeable future.