Rise in remittances, dollar appreciation, and investment confidence drive 18% jump in FY 2024–25
Non-Resident Indians (NRIs) from Gujarat have ramped up their banking deposits in the state, leading to the highest growth in five years. As per the latest State-Level Bankers’ Committee (SLBC) report, NRI deposits in Gujarat soared by 18% in the 2024–25 financial year, reaching ₹1,09,101.80 crore in March 2025 compared to ₹92,339.75 crore a year earlier, reported timesofindia.indiatimes.com.
A strong dollar, secure financial instruments, and diaspora confidence in India’s growth story are behind Gujarat’s NRI deposit boom
The remarkable surge comes after a sluggish 0.45% growth in FY 2023–24. Bankers attribute the rise to appreciation of the US dollar, which has made foreign currency deposits significantly more rewarding for NRIs. In comparison, deposits in March 2023 stood at ₹91,923.69 crore, up 14% from March 2021, but remained almost stagnant between 2020 and 2021.
“Gujarat has a strong diaspora that continues to trust in India’s growth journey,” report quoted Ajay Patel, chairman of Gujarat State Co-op Bank, as saying
A key driver of the surge is increased remittances from NRIs based in the US, UK, Canada, and the Gulf countries. A banking sector source explained, “Currency appreciation is a key motivator. NRIs from Gujarat often opt for fixed deposits and stable instruments back home due to their emotional and financial ties.”
In addition to traditional deposits, there is growing awareness among NRIs about Indian investment avenues like real estate, infrastructure bonds, and government schemes—most of which require initial funds to be routed through NRI deposit accounts.
With continued global financial uncertainty and favorable returns, Gujarat’s banks are expected to remain a preferred channel for diaspora funds in the foreseeable future, say industry insiders.
