NRI Deposits Surge in Gujarat
Ahmedabad: Non-Resident Indians (NRIs) are proving to be a strong support for banks in Gujarat, with recent data showing that their deposits rose by nearly 17% in the first quarter of FY 2026. The total deposits from NRIs reached about ₹1.08 lakh crore, compared to ₹93,096.04 crore a year ago.
This increase has been attributed to a stronger dollar and the steady earnings of Gujarati workers abroad. Bank officials highlight that these rising deposits reflect the trust NRIs have in Indian banks, while also improving credit availability across various sectors.
According to banking insiders, the rise in deposits is largely due to the dollar’s strength against the Indian rupee and a boost in global remittances. “This jump comes at a time when Indian workers overseas, especially in regions like the Gulf, North America, and Europe, are earning well, thanks to favorable currency movements,” said a senior banker, who preferred to stay anonymous.
Gujarat boasts a significant diaspora, particularly in the US, UK, Canada, and West Asia, which contributes to these deposits due to the safety of formal investments. Bankers also note that the increase in remittances signifies growing confidence among NRI investors in the Indian banking system. Many are now investing in real estate and stocks back home using their remitted funds.
Over the years, the profile of Gujarat’s NRI community has evolved. It was once primarily made up of traditional migrant workers, but now includes a significant number of professionals in IT and other skilled fields. These financially stable individuals are remitting larger amounts for investment purposes.
In fact, during the March quarter, NRI deposits had already crossed ₹1 lakh crore. However, deposits in June 2026 saw a slight decline compared to March 2025, where they stood at ₹1.09 lakh crore. For banks in Gujarat, these deposits are crucial for maintaining liquidity, enabling them to provide loans in retail and corporate sectors even when domestic demand fluctuates.
