Expats send Rs 1.9 lakh crore to Kerala banks
KOCHI: Despite the rising number of Malayalees returning home from the Gulf region, deposits by expatriate Keralites have seen a robust 12-per cent rise in the year ended March 2019 to Rs 190,055 crore, thanks to the depreciation of Indian rupee in the last one year. Steady growth in deposits comes at a time when reports suggest that higher tax rates for expatriates and preference for locals in jobs in West Asia are forcing a large number of Malayalees to return to Kerala. More than 85 per cent of the expat Malayalees are based in the Gulf.
“There could be mainly two reasons for the healthy inflow of foreign-exchange deposits to banks in Kerala. One, people who’re returning for good are bringing all their savings to Kerala. And two, the rupee value has declined vis-a-vis the dollar, resulting in higher value for their deposits,” said VK Vijayakumar, chief investment strategist, Geojit Financial Services, a stockbroking outfit.
A study by Centre for Development Studies (CDS), the number of emigrants in West Asia from Kerala declined to 18.93 lakh in 2018 from 20.70 lakh in 2013.
A consistent growthof 12% since 2017
The study by Centre for Development Studies, released last year, attributed declining population in the 19-25 age-group and stagnant wages in West Asia for the 11 per cent decline in migration from Kerala between 2013 and 2018. Vijayakumar said the rupee has declined by seven per cent in the last fiscal, which means the actual growth in deposits in 2018-19 is only five per cent.
As per the data put out by the Kerala State Level Bankers Committee (SLBC), a body that monitors banking-sector developments in the state, the NR (non-resident) deposits grew from Rs 152,349 crore in March 31, 2017, to Rs 169,944 crore in March 31, 2018, to Rs 190,055 crore in March 31, 2019 --- a consistent growth of 12 per cent since 2017.
In contrast, the total domestic-deposit growth in Kerala during March 2017 to March 2018 stood at seven per cent from Rs 258,143 crore to Rs 277,291 crore; and nine per cent growth from March 2018 to March 2019 to Rs 303,507 crore.
NR deposits
Mar 31, 2017
E152,349 cr
Mar 31, 2018
E169,944 cr
Mar 31, 2019
E190,055 cr