By IANS
Thiruvananthapuram : Non-resident deposits in Kerala banks have witnessed a decline in the first quarter of current fiscal.
According to figures released by State Level Bankers Committee meeting held here Wednesday, non-resident deposits in banks in Kerala amounted to Rs.319.95 billion as on June this year, which is 34.56 percent of total deposits in these banks.
The State Bank group leads non-resident deposits with Rs.122.73 billion (38.36 percent) followed by private sector banks with Rs.102.06 billion. Other nationalised banks put together account for Rs.90.83 billion.
The report said that 69.74 percent of the deposits were from semi-urban areas, 23.74 percent was from urban areas and 6.92 percent from rural areas.
These deposits come from nearly two million expatriate Keralites, of which close to 90 percent work in the Middle East.
Speaking to IANS a top official of Federal Bank who did not want to be identified said that the trend of falling non-resident deposits began a couple of years back.
“The falling interest rate on non-resident deposits is the prime reason. Another reason is strengthening of the rupee against dollar. Non-resident Keralites have begun parking a portion of their funds in banks abroad. They have also started investing in real estate. Some are also parking funds in tax-free havens. The need of the hour is immediate intervention of the centre to hike interest rates on non-resident deposits,” said the bank official.