Gujarat NRI deposits record fastest growth in 5 years
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AHMEDABAD: Gujarat saw a surge in deposits by non-resident Indians (NRIs), which grew by 18% in the 2024–25 financial year, the highest rate of growth in five years.
According to the latest State-Level Bankers' Committee (SLBC) report, the value of NRI deposits in banks across the state was Rs 1,09,101.80 crore in March 2025, compared to Rs 92,339.75 crore in March 2024.
The increase was attributed to the appreciation of the US dollar against the Indian rupee, which made foreign currency deposits more attractive for NRIs seeking to maximize returns on remittances. The previous financial year saw only a marginal increase of 0.45%. In March 2023, the deposit figure was Rs 91,923.69 crore, which was a 14% increase over the March 2021 figure of Rs 80,182.76 crore.
Deposits in March 2020 were Rs 80,109.21 crore, indicating almost no change between 2020 and 2021.
Data for the fiscal year ending March 2022 was not made available in the current report.
Bankers say that apart from favourable currency trends, several other factors contributed to this upward trajectory.
Co-operative banks are also seeing an increase in NRI deposits.
Ajay Patel, chairman of the
Gujarat State Co-op Bank
, said, 'Gujarat has a strong diaspora for decades and they have kept their connection with the state intact. They have been investing in the Indian growth story.
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Coop banks, which have permission for NRI deposits, have seen an increase in deposits in the last few years.'
'A notable increase in remittances from Gujarat-origin NRIs in the United States, Canada, the United Kingdom and the Gulf countries has led to a rise in NRI deposits. Currency appreciation is a key reason here as depositors will be able to maximize returns. Due to the strong connection with their roots back home, Gujaratis often put their earnings into fixed deposits and other secure banking instruments back home,' said a banking sector source, requesting anonymity.
There has also been growing awareness among NRIs about investment opportunities in India, including in real estate, infrastructure bonds and govt-backed schemes, many of which require initial parking of funds through NRI deposit accounts, bankers said.
As global uncertainties persist and currency values remain volatile, Gujarat's banks are expected to remain a trusted avenue for diaspora funds in the near term.
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